Document:

CONN
      FUNDING II, L.P.,

    as
      Issuer

    and

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

     

    as
      Trustee

     

    SERIES
      2006-A SUPPLEMENT

     

    Dated
      as of August 1, 2006

     

    to

     

    BASE
      INDENTURE

     

    Dated
      as of September 1, 2002

     

    CONN
      FUNDING II, L.P.

     

    SERIES
      2006-A

    
 

    5.507%
      Asset Backed Fixed Rate Notes, Class A

    5.854%
      Asset Backed Fixed Rate Notes, Class B

    6.814%
      Asset Backed Fixed Rate Notes, Class C

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      TABLE
        OF CONTENTS

      (continued)

    

    
      	 	 	
               

            
	 	 	 
	
              SECTION
                1.

            	
              Definitions

            	
               

            
	
              SECTION
                2.

            	
              Article
                3 of the Base Indenture

            	
               

            
	
              SECTION
                3.

            	
              Servicing
                Compensation

            	
               

            
	
              SECTION
                4.

            	
              Cleanup
                Call

            	
               

            
	
              SECTION
                5.

            	
              Delivery
                and Payment for the Notes

            	
               

            
	
              SECTION
                6.

            	
              Form
                of Delivery of the Notes; Depository; Denominations;
                Transfer

            	 
	
               

            	
              
                Provisions

              

            	
               

            
	
              SECTION
                7.

            	
              Article
                5 of Base Indenture

            	
               

            
	
              SECTION
                8.

            	
              Article
                6 of the Base Indenture

            	
               

            
	
              SECTION
                9.

            	
              Series
                2006-A Pay Out Events

            	
               

            
	
              SECTION
                10.

            	
              Article
                7 of the Base Indenture

            	
               

            
	
              SECTION
                11.

            	
              [Reserved]

            	
               

            
	
              SECTION
                12.

            	
              [Reserved]

            	
               

            
	
              SECTION
                13.

            	
              Counterparts

            	
               

            
	
              SECTION
                14.

            	
              Governing
                Law

            	
               

            
	
              SECTION
                15.

            	
              Waiver
                of Trial by Jury

            	
               

            
	
              SECTION
                16.

            	
              No Petition

            	
               

            
	
              SECTION
                17.

            	
              Rights
                of the Trustee

            	
               

            
	 	 	 
	 	 	 
	
              EXHIBIT
                A-1

            	
              Form
                of Restricted Global Note

            	 
	
              EXHIBIT
                A-2

            	
              Form
                of Temporary Regulation S Global Note

            	 
	
              EXHIBIT
                A-3

            	
              Form
                of Permanent Regulation S Global Note

            	 
	
              EXHIBIT
                B-1

            	
              Form
                of Restricted Global Note

            	 
	
              EXHIBIT
                B-2

            	
              Form
                of Temporary Regulation S Global Note

            	 
	
              EXHIBIT
                B-3

            	
              Form
                of Permanent Regulation S Global Note

            	 
	
              EXHIBIT
                C-1

            	
              Form
                of Restricted Global Note

            	 
	
              EXHIBIT
                C-2

            	
              Form
                of Temporary Regulation S Global Note

            	 
	
              EXHIBIT
                C-3

            	
              Form
                of Permanent Regulation S Global Note

            	 
	
              EXHIBIT
                D

            	
              Form
                of Monthly Noteholders’ Statement

            	 
	
              EXHIBIT
                E-1

            	
              Form
                of Transfer Certificate

            	 
	
              EXHIBIT
                E-2

            	
              Form
                of Certificate to be Delivered to Exchange Temporary Regulation S
                Global
                Note for Permanent Regulation S Global Note

            	 
	
              EXHIBIT
                E-3

            	
              Form
                of Certificate to Transfer from Restricted Global Note to Temporary
                Regulation S Global Note

            	 
	
              EXHIBIT
                E-4

            	
              Form
                of Certificate to Transfer from Restricted Global Note to Permanent
                Regulation S Global Note

            	 
	
              EXHIBIT
                E-5

            	
              Form
                of Certificate to Transfer from Temporary Regulation S Global Note
                to
                Restricted Global Note

            	 
	
              SCHEDULE
                1

            	
              List
                of Proceedings

            	 
	
              SCHEDULE
                2

            	
              List
                of Trade Names

            	 
	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SERIES
      2006-A SUPPLEMENT, dated as of August 1, 2006 (as amended, modified,
      restated or supplemented from time to time in accordance with the terms hereof,
      this “Series
      Supplement”),
      by
      and among CONN FUNDING II, L.P., a special purpose limited partnership
      established under the laws of Texas, as issuer (“Issuer”),
      and
      WELLS FARGO BANK, NATIONAL ASSOCIATION, a banking association organized and
      existing under the laws of the United States of America, as trustee (together
      with its successors in trust under the Base Indenture referred to below, the
      “Trustee”)
      to the
      Base Indenture, dated as of September 1, 2002, between the Issuer and the
      Trustee (as amended, modified, restated or supplemented from time to time,
      exclusive of Series Supplements, the “Base
      Indenture”).

     

    Pursuant
      to this Series Supplement, the Issuer shall create a new Series of Notes and
      shall specify the Principal Terms thereof.

     

    PRELIMINARY
      STATEMENT

     

    WHEREAS,
      Section 2.2
      of the
      Base Indenture provides, among other things, that Issuer and the Trustee
      may at any time and from time to time enter into a series supplement to the
      Base Indenture for the purpose of authorizing the issuance of one or more Series
      of Notes.

     

    NOW,
      THEREFORE, the parties hereto agree as follows:

     

    DESIGNATION

     

    (a) There
      is
      hereby created a Series of notes to be issued pursuant to the Base Indenture
      and
      this Series Supplement and such Series of notes shall be substantially in the
      form of Exhibits A,
      B and
      C
      hereto,
      executed by or on behalf of the Issuer and authenticated by the Trustee and
      designated generally 5.507% Asset Backed Fixed Rate Notes, Class A, Series
      2006-A (the “Class
      A Notes”),
      5.854% Asset Backed Fixed Rate Notes, Class B, Series 2006-A (the “Class
      B Notes”),
      6.814% Asset Backed Fixed Rate Notes, Class C, Series 2006-A (the “Class
      C Notes”,
      and
      together with the Class A Notes and the Class B Notes, the “Notes”).
      The
      Notes shall be issued in minimum denominations of $500,000.

     

    (b) Series 2006-A
      (as defined below) shall not be subordinated to any other Series.

     

    SECTION
      1.   Definitions.
      In the
      event that any term or provision contained herein shall conflict with or be
      inconsistent with any provision contained in the Base Indenture, the terms
      and
      provisions of this Series Supplement shall govern. All Article, Section or
      subsection references herein mean Articles, Sections or subsections of this
      Series Supplement, except as otherwise provided herein. All capitalized terms
      not otherwise defined herein are defined in the Base Indenture. Each capitalized
      term defined herein shall relate only to the Notes and no other Series of Notes
      issued by the Issuer.

     

    “Additional
      Cash Reserve Amount”
means,
      on any date, if the Net Portfolio Yield averaged over the three preceding
      Monthly Periods (i) exceeds 5.0%, $0, (ii) exceeds 4.0% but does not exceed
      5.0%, 2.0% of the outstanding principal amount of the Notes on such date, (iii)
      exceeds 3.0% but does not exceed 4.0%, 3.0% of the outstanding principal amount
      of the Notes on such date, (iv) is 3.0% or less, 4.0% of the outstanding
      principal amount of the Notes on such date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Additional
      Interest”
has
      the
      meaning specified in Section
      5.12.

     

    “Aggregate
      Investor Default Amount”
means,
      with respect to any Monthly Period, an amount equal to the product of (a) the
      aggregate Outstanding Principal Balance of all Receivables that became Defaulted
      Receivables during such Monthly Period (each respective Outstanding Principal
      Balance being measured as of the date the relevant Receivable became a Defaulted
      Receivable) minus any Deemed Collections deposited into the Collection Account
      during such Monthly Period in respect of Receivables that have become Defaulted
      Receivables before or during such Monthly Period and (b) the Floating Investor
      Percentage with respect to such Monthly Period.

     

    “Aggregate
      Net Investor Charge-Offs”
means,
      on any date of determination, the sum of the “Net Investor Charge-Offs” or
      similar amount for each Series.

     

    “Available
      Funds”
means,
      with respect to any Monthly Period, an amount equal to the Investor Percentage
      of Collections of Finance Charges, Recoveries and Investment Earnings deposited
      in the Finance Charge Account for such Monthly Period (or to be deposited in
      the
      Finance Charge Account on the related Series Transfer Date with respect to
      the
      preceding Monthly Period pursuant to the third paragraph of subsection 5.4(a)
      of the
      Base Indenture).

     

    “Available
      Investor Principal Collections”
means
      (A) with respect to the Notes and any Monthly Period, an amount equal to (i)
      the
      Investor Principal Collections for such Monthly Period, plus
      (ii) the
      amount of Shared Principal Collections that are allocated to Series 2006-A
      in accordance with Section
      5.19,
      and (B)
      when used with respect to any other Series, has the meaning specified in the
      applicable Series Supplement.

     

    “Available
      Issuer Interest”
has
      the
      meaning specified in the definition of Coverage Test.

     

    “CAI”
means
      CAI, L.P.

     

    “Cash
      Option”
means
      a
      provision in any Contract which provides for the application of interest
      payments theretofore made by the related Obligor against the Outstanding
      Principal Balance of the related Receivable if such Obligor shall pay the
      Outstanding Principal Balance (less the interest to be so credited) on or prior
      to the end of the related Cash Option Period.

     

    “Cash
      Option Amount”
means,
      as of any Determination Date, with respect to the outstanding Cash Option
      Receivables, the product of (i) the highest Portfolio Yield during the past
      twelve months divided
      by
      twelve,
times
      (ii) the
      aggregate Outstanding Principal Balance of such Cash Option Receivables,
times
      (iii)
      the weighted average Cash Option Period for such Cash Option Receivables
      (expressed in months).

     

    “Cash
      Option Period”
means,
      with respect to any Cash Option Receivable, the period, not to exceed
      forty-eight months, from and including the Initiation Date for such Cash Option
      Receivable and ending on the last day, as set forth in the related Contract,
      that the related Obligor may exercise the Cash Option.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Cash
      Reserve Account”
has
      the
      meaning specified in subsection
      5.20(a).

     

    “Cash
      Reserve Account Required Amount”
means,
      as of any date, the lesser of (a) $6,000,000 plus the Additional Cash Reserve
      Amount for such date and (b) 10% of the outstanding principal amount of the
      Notes on such date.

     

    “Cash
      Option Receivable”
means
      any Purchased Receivable which includes a Cash Option.

     

    “Change
      in Control”
shall
      mean any of the following:

     

    (a) the
      acquisition of ownership by any Person or group (other than one or more
      shareholders of Conn (determined as of the Closing Date)) of shares representing
      more than 50% of the aggregate ordinary voting power represented by the issued
      and outstanding capital stock of Conn’s Inc., a Delaware corporation (“Conn’s
      Inc.”); or

     

    (b) the
      failure of Conn’s Inc. to own 100% of the equity interest of Conn;
      or

     

    (c) the
      failure by Conn to be the sole general partner of CAI or, directly or
      indirectly, to be the sole equity holder of CAI; or 

     

    (d) the
      failure of CAI to be the sole equity holder of Conn Funding II GP, L.L.C.;
      or

     

    (e) the
      failure by CAI to be the sole limited partner of Issuer, or the failure of
      Conn
      Funding II GP, L.L.C. to be the sole general partner of the Issuer, or the
      creation or imposition of any Lien on any equity interests of the
      Issuer.

     

    “Class
      A Carryover Amount”
means,
      (i) with respect to the first Payment Date occurring after the Controlled
      Amortization Period begins, $0 and (ii) with respect to any other Payment
      Date during the Controlled Amortization Period, the excess, if any, of (a)
      the
      Class A Controlled Distribution Amount for the preceding Payment Date over
      (b)
      the actual amount distributed to the Class A Noteholders with respect to
      principal of the Class A Notes on such preceding Payment Date.

     

    “Class
      A Controlled Distribution Amount”
means,
      for any Payment Date, an amount equal to the sum of $4,500,000 plus any Class
      A
      Carryover Amount.

     

    “Class
      A Noteholder”
means
      a
      Holder of a Class A Note.

     

    “Class
      A Note Principal”
means
      the outstanding principal amount of Class A Notes.

     

    “Class
      A Notes”
is
      defined in the Designation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Class
      B Carryover Amount”
means,
      (i) with respect to the first Payment Date occurring after the Controlled
      Amortization Period begins, $0 and (ii) with respect to any other Payment
      Date during the Controlled Amortization Period, the excess, if any, of (a)
      the
      Class B Controlled Distribution Amount for the preceding Payment Date over
      (b)
      the actual amount distributed to the Class B Noteholders with respect to
      principal of the Class B Notes on such preceding Payment Date.

     

    “Class
      B Controlled Distribution Amount”
means,
      for any Payment Date, an amount equal to the sum of $2,166,650 plus any Class
      B
      Carryover Amount.

     

    “Class
      B Noteholder”
means
      a
      Holder of a Class B Note.

     

    “Class
      B Note Principal”
means
      the outstanding principal amount of Class B Notes.

     

    “Class
      B Notes”
is
      defined in the Designation.

     

    “Class
      C Carryover Amount”
means,
      (i) with respect to the first Payment Date occurring after the Controlled
      Amortization Period begins, $0 and (ii) with respect to any other Payment
      Date during the Controlled Amortization Period, the excess, if any, of (a)
      the
      Class C Controlled Distribution Amount for the preceding Payment Date over
      (b)
      the actual amount distributed to the Class C Noteholders with respect to
      principal of the Class C Notes on such preceding Payment Date.

     

    “Class
      C Controlled Distribution Amount”
means,
      for any Payment Date, an amount equal to the sum of $833,350 plus any Class
      C
      Carryover Amount.

     

    “Class
      C Noteholder”
means
      a
      Holder of a Class C Note.

     

    “Class
      C Note Principal”
means
      the outstanding principal amount of Class C Notes.

     

    “Class
      C Notes”
is
      defined in the Designation.

     

    “Closing
      Date”
means
      August 31, 2006.

     

    "Code"
      means
      the Internal Revenue Code of 1986, as amended.

     

    “Contingent
      Liability”
means
      any agreement, undertaking or arrangement by which any Person guarantees,
      endorses or otherwise becomes or is contingently liable upon (by direct or
      indirect agreement, contingent or otherwise, to provide funds for payment,
      to
      supply funds to, or otherwise to invest in, a debtor, or otherwise to assure
      a
      creditor against loss) the indebtedness, obligation or any other liability
      of
      any other Person (other than by endorsements of instruments in the course of
      collection), or guarantees the payment of dividends or other distributions
      upon
      the shares of any other Person. The amount of any Person’s obligation under any
      Contingent Liability shall (subject to any limitation set forth therein) be
      deemed to be the outstanding principal amount (or maximum outstanding principal
      amount, if larger) of the debt, obligation or other liability guaranteed
      thereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Controlled
      Amortization Period”
means
      the period commencing on the Scheduled Pay Out Commencement Date and ending
      on
      the Rapid Pay Out Commencement Date.

     

    “Controlled
      Amortization Termination Date”
means
      April 20, 2012.

     

    “Controlled
      Distribution Amount”
means,
      for any Payment Date, an amount equal to the sum of (i) the Class A
      Controlled Distribution Amount, plus (ii) the Class B Controlled
      Distribution Amount, plus (iii) the Class C Controlled Distribution
      Amount.

     

    “Coverage
      Test”
means,
      on any date of determination, that (i) the Issuer Interest as of such date
      exceeds the largest required “Minimum Issuer Interest” of any outstanding Series
      (such excess being herein called the “Available Issuer Interest”) as of such
      date (determined by the Servicer taking into account any increases, decreases
      and status changes of the Receivables and any increases or decreases in the
      outstanding notes including those scheduled to occur on such date) and
      (ii) the Aggregate Net Investor Charge-Offs is zero as of such
      date.

     

    “Cumulative
      Series Principal Shortfall”
means
      the sum of the Series Principal Shortfalls (as such term is defined in each
      of
      the related Series Supplements) for each Series.

     

    “Deficiency
      Amount”
has
      the
      meaning specified in Section
      5.12.

     

    “DWAC”
means
      the DTC Deposit/Withdrawal at Custodian system.

     

    "ERISA"
      means
      the Employee Retirement Income Security Act of 1974, as amended.

     

    “Excess
      Funding Account”
has
      the
      meaning specified in subsection 5.21(a).

     

    “Excess
      Spread”
means,
      with respect to any Series Transfer Date, the amounts with respect to such
      Series Transfer Date, if any, specified pursuant to paragraph 5.15(a)(vii).

     

    “Exchange
      Date”
has
      the
      meaning specified in paragraph
      6(c)(ii).

     

    “Finance
      Charge Collections”
means
      (i) all Collections allocable to Finance Charges, (ii) all Recoveries allocable
      to Finance Charges and (iii) any net amounts payable to the Issuer under any
      Enhancement Agreement.

     

    “Fixed
      Investor Percentage”
means,
      with respect to any Monthly Period, the percentage equivalent of a fraction,
      the
      numerator of which is the Investor Interest as of the close of business on
      the
      last day of the Revolving Period and the denominator of which is the sum of
      the
      numerators used to calculate the respective investor percentages used for
      allocations with respect to Principal Receivables for all outstanding Series
      on
      such date of determination.

     

    “Floating
      Investor Percentage”
means,
      with respect to any Monthly Period, the percentage equivalent of a fraction,
      the
      numerator of which is the Modified Investor Interest for such Monthly Period
      and
      the denominator of which is the sum of the numerators used to calculate the
      respective investor percentages used for allocations with respect to Finance
      Charges, Recoveries, Investment Earnings, Aggregate Investor Default Amounts,
      Principal Receivables, Available Issuer Interest, Servicing Fee or Trustee
      and
      Back-up Servicer Fees and Expenses, as applicable, for all outstanding Series
      on
      such date of determination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Global
      Note”
has
      the
      meaning specified in subsection 6(a).

     

    “Gross
      Loss Rate”
means,
      with respect to any Monthly Period, the ratio (expressed as a percentage)
      computed as of the last day of such Monthly Period, by dividing (i) the
      Outstanding Principal Balance of Defaulted Receivables which were deemed to
      be
      Defaulted Receivables during such Monthly Period by (ii) (A) the
      aggregate Outstanding Principal Balance of all Receivables as of the last day
      of
      the previous Monthly Period plus (B) the aggregate Outstanding Principal
      Balance of all Receivables as of such last day of such Monthly Period divided
      by
      (C) two and multiplying the result by (iii) twelve.

     

    “Initial
      Note Principal”
means
      the aggregate initial principal amount of the Notes, which is
      $150,000,000.

     

    “Initiation
      Date”
means,
      with respect to any Receivable, the date of the transaction that gave rise
      to
      the original Outstanding Principal Balance of such Receivable.

     

    “Interest
      Period”
means,
      with respect to any Payment Date, the period from and including the Payment
      Date
      immediately preceding such Payment Date (or, in the case of the first Payment
      Date, from and including the Closing Date) to but excluding such Payment
      Date.

     

    “Investor
      Charge-Offs”
has
      the
      meaning specified in subsection 5.16(a).

     

    “Investor
      Interest”
means,
      on any date of determination, an amount equal to (a) the Initial Note Principal,
      minus
      (b) the aggregate amount of principal payments made to Noteholders prior to
      such date, minus
      (c) the aggregate amount of Investor Charge-Offs pursuant to subsection 5.16(a),
      plus
      (d) the aggregate amount of Excess Spread and funds on deposit in the
      Excess Funding Account applied on all prior Series Transfer Dates pursuant
      to
subsection 5.17(b)
      for the
      purpose of reimbursing amounts deducted pursuant to the foregoing
      clause (c), plus (e) the
      Required Reserve Amount. Once all principal and interest on the Notes and any
      other amounts payable to the Noteholders pursuant to the Transaction Documents
      have been paid in full, the Investor Interest shall be zero.

     

    “Investor
      Percentage”
means,
      for any Monthly Period, (a) with respect to Finance Charges, Recoveries,
      Investment Earnings, Aggregate Investor Default Amounts, Available Issuer
      Interest, Servicing Fee and Trustee and Back-Up Servicer Fees and Expenses
      at
      any time and Principal Receivables during the Revolving Period, the Floating
      Investor Percentage and (b) with respect to Principal Receivables during the
      Controlled Amortization Period or the Rapid Amortization Period, the Fixed
      Investor Percentage.

     

    “Investor
      Principal Collections”
means,
      with respect to any Monthly Period, the sum of (a) the Investor Percentage
      of
      the aggregate amount deposited into the Principal Account (less any Issuer
      Distributions) for such Monthly Period pursuant to paragraph
      5.11(a)(i),
      (b) the
      aggregate amount to be treated as Investor Principal Collections for such
      Monthly Period pursuant to paragraph
      5.15(a)(iii)
      and
Section
      5.17,
      and (c) in connection with the purchase or redemption of Notes, the
      aggregate amount deposited in the Payment Account pursuant to Section 4
      hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Issuer”
is
      defined in the preamble of this Series Supplement.

     

    “Legal
      Final Payment Date”
means
      April 20, 2017.

     

    “Minimum
      Issuer Interest”
means
      for any date of determination an amount equal to (a) the Cash Option Amount
      as
      of such date plus (b) the Outstanding Principal Balance of all Receivables
      that are not Eligible Receivables as of such date.

     

    “Modified
      Investor Interest”
means
      for any Monthly Period, the average daily Investor Interest for such Monthly
      Period (or, in the case of the first Monthly Period, from and including the
      Closing Date to, and including the last day of such first Monthly
      Period).

     

    “Monthly
      Interest”
has
      the
      meaning specified in Section 5.12.

     

    “Monthly
      Period”
has
      the
      meaning specified in the Base Indenture.

     

    “Monthly
      Principal”
has
      the
      meaning specified in Section 5.13.

     

    “Net
      Investor Charge-Offs”
means,
      on any date of determination, the excess of (a) the amount described in
      clause (c) of the definition of Investor Interest on such date over (b) the
      amount described in clause (d) of such definition on such
      date.

     

    “Net
      Portfolio Yield”
for
      any
      Monthly Period (as determined as of the last day of each Monthly Period) shall
      mean the annualized percentage equivalent of a fraction, (a) the numerator
      of
      which is equal to the Net Yield Amount for such Monthly Period and (b) the
      denominator of which is equal to the aggregate Outstanding Principal Balance
      of
      all Receivables on such day. For purposes of this definition, “Net Yield Amount”
means for any Monthly Period an amount equal to the excess of the sum of
      Collections of Finance Charges plus Recoveries allocable to Finance Charges
      over
      the sum of (a) interest and fees accrued for the current Monthly Period and
      overdue interest and fees with respect to the Notes and “Enhancement” of all
      Series (together with, if applicable, interest on such overdue interest and
      fees
      at the rate specified in the accompanying series supplements), (b) accrued
      and
      unpaid Servicing Fees and Trustee and Back-Up Servicer Fees and Expenses for
      such Monthly Period, (c) the aggregate Outstanding Principal Balance of all
      Receivables that became Defaulted Receivables during such Monthly Period (each
      respective Outstanding Principal Balance being measured as of the date the
      relevant Receivable became a Defaulted Receivable), and (d) any other costs,
      expenses, or liability of the Issuer of any nature whatsoever incurred during
      such Monthly Period (except for the obligations of the Issuer to pay any
      principal on the Notes outstanding at such time or any Business Taxes and except
      for fee and indemnity expenses for which cash other than such Monthly Period’s
      Collections are available to the Issuer).

     

    “Note
      Principal”
means
      on any date of determination the then outstanding principal amount of the
      Notes.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Note
      Purchase Agreement”
means
      any agreement by and among the initial Class A Noteholder, Class B Noteholder
      or
      Class C Noteholder, CAI, Conn and the Issuer, pursuant to which a purchaser
      agrees to purchase an interest in a Class A Note, a Class B Note or a Class
      C
      Note, respectively from the Issuer, subject to the terms and conditions set
      forth therein, or any successor agreement to such effect among the Issuer and
      such Noteholder or its successors, as amended, supplemented or otherwise
      modified from time to time.

     

    “Note
      Rate”
means,
      with respect to each Interest Period, a fixed rate equal to 5.507% per annum
      with respect to the Class A Notes, 5.854% with respect to the Class B Notes,
      and
      6.814% with respect to the Class C Notes.

     

    “Noteholder”
means
      with respect to any Note, the holder of record of such Note.

     

    “Notes”
has
      the
      meaning specified in paragraph (a)
      of the
Designation.

     

    “Notice
      Persons”
means
      the Rating Agency; provided that with respect to any provision requiring the
      consent or approval of the Notice Persons, such consent or approval shall be
      deemed to have been obtained if the Rating Agency Condition is
      satisfied.

     

    “Original
      Contracted Term”
means
      with respect to any Revolving Charge Receivable, the initial Outstanding
      Principal Balance divided by the originally contracted minimum monthly
      payment.

     

    “Payment
      Account”
means
      the account established as such for the benefit of the Secured Parties of this
      Series 2006-A pursuant to subsection 5.3(c)
      of the
      Base Indenture.

     

    “Payment
      Date”
      means September
      20, 2006 and the twentieth day of each calendar month thereafter, or if such
      twentieth day
      is
      not a Business Day, the next succeeding Business Day.

     

    “Payoff
      Date”
means
      the date on which all principal and interest on the Notes and any other amounts
      directly related to Series 2006-A payable to any Noteholder under the
      Transaction Documents have been indefeasibly paid in full.

     

    “Permanent
      Regulation S Global Note”
has
      the
      meaning specified in paragraph 6(a)(ii).

     

    “Permissible
      Uses”
means
      the amount of funds to be used by the Issuer to pay (i) the Servicer Letter
      of Credit Bank any amounts payable thereto by the Issuer under the reimbursement
      agreement for the Servicer Letter of Credit, (ii) the Sellers for Subsequently
      Purchased Receivables (directly or through repayment of any subordinated notes
      issued to the Sellers), (iii) its equity owners, as a dividend distribution
      (so long as the Issuer has a net worth (in accordance with GAAP) of at least
      1%
      of the outstanding principal amount of the Notes after giving effect thereto)
      and (iv) other expenses of the Issuer not prohibited by the Transaction
      Documents.

     

    “Portfolio
      Yield”
means,
      with respect to Eligible Receivables for any Monthly Period, the ratio
      (expressed as a percentage) computed as of the last day of such Monthly Period
      by dividing (i) the amount of all Finance Charge Collections (other than amounts
      described in clause
      (iii)
      of the
      definition thereof) received during such Monthly Period, by
      (ii) (A) the aggregate Outstanding Principal Balance of all
      Receivables as of the last day of the previous Monthly Period plus (B) the
      aggregate Outstanding Principal Balance of all Receivables as of such last
      day
      of such Monthly Period divided by (C) two and multiplying the result by
      (iii) twelve.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Preference
      Amount”
means
      any amount previously distributed to a Noteholder on the Notes that is
      recoverable and sought to be recovered as a voidable preference by a trustee
      in
      bankruptcy pursuant to the Bankruptcy Code, in accordance with a final
      nonappealable order of a court having competent jurisdiction.

     

    “Principal
      Reallocation Amount”
means
      the Investor Percentage (determined with regard to only (and only to the extent
      of) those Series with respect to which principal is being reallocated pursuant
      to a corresponding provision at such time) of the Available Issuer Interest
      (after giving effect to any reduction pursuant to Section
      5.16 or
      the
      definition of Required Reserve Amount on such day or pursuant to any comparable
      provisions of any other Series Supplement of any other Series on such day)
      at
      such time.

     

    “QIB”
has
      the
      meaning specified in paragraph
      6(a)(i).

     

    “Rapid
      Amortization Period”
means
      the Amortization Period commencing on the Rapid Pay Out Commencement Date and
      ending on the Series 2006-A Termination Date.

     

    “Rapid
      Pay Out Commencement Date”
means
      the earliest of (i) the Controlled Amortization Termination Date,
      (ii) the date on which an Issuer Pay Out Event is deemed to occur pursuant
      to Section 9.1
      of the
      Base Indenture or (iii) the date on which a Series 2006-A Pay Out
      Event is deemed to occur pursuant to Section 9
      of this
      Series Supplement.

     

    “Rating
      Agency”
means
      Moody’s.

     

    “Redemption
      Date”
means
      the date on which the Notes are redeemed in full pursuant to Section 4
      hereof.

     

    “Reference
      Banks”
means
      four major banks in the London interbank market selected by the
      Trustee.

     

    “Regulation
      S”
has
      the
      meaning specified in specified in paragraph
      6(a)(ii).

     

    “Required
      Amount”
has
      the
      meaning specified in subsection 5.14(a).

     

    “Required
      Class A Principal Distribution”
has
      the
      meaning specified in paragraph 5.15(e)(i).

     

    “Required
      Class B Principal Distribution”
has
      the
      meaning specified in paragraph 5.15(e)(ii).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Required
      Class C Principal Distribution”
has
      the
      meaning specified in paragraph 5.15(e)(iii).

     

    “Required
      Interest Distribution”
has
      the
      meaning specified in paragraph 5.15(a)(i).

     

    “Required
      Persons”
means
      Holders of Notes voting together without regard to class representing at least
      66-2/3% of the aggregate Note Principal of all Notes.

     

    “Required
      Reserve Amount”
shall
      mean, at any time, the sum of (a) an amount equal to (i) the Note Principal
      at such time, multiplied by (ii)(A) the Required Reserve Percentage, divided
      by
      (B) 100% minus the Required Reserve Percentage plus (b) the Series 2006-A
      Concentration Amount, if any, at such time; provided,
      however,
      that
      the Required Reserve Amount shall be fixed during the Controlled Amortization
      Period and the Rapid Amortization Period as of the earlier of (i) the Scheduled
      Pay Out Commencement Date and (ii) the Rapid Pay Out Commencement Date;
provided,
      further,
      that
      the Required Reserve Amount may only increase from time to time to the extent
      of
      the Investor Percentage (determined with regard to only (and only to the extent
      of) those Series with respect to which the “Required Reserve Amount” is
      increasing at such time) of the Available Issuer Interest (after giving effect
      to any reductions pursuant to Section
      5.16,
      but
      prior to any reductions with respect to Principal Reallocation Amounts on such
      day, or pursuant to any comparable provisions of any other Series Supplement
      for
      any Series on such day) at such time.

     

    “Required
      Reserve Percentage”
means
      10%.

     

    “Restricted
      Global Note”
has
      the
      meaning specified in paragraph
       6(a)(i).

     

    “Restricted
      Period”
has
      the
      meaning specified in paragraph
      6(c)(ii).

     

    “Revolving
      Period”
means
      the period from and including the Closing Date to, but not including, the
      earlier of (i) the Scheduled Pay Out Commencement Date and (ii) the Rapid Pay
      Out Commencement Date.

     

    “Rule
      144A”
has
      the
      meaning specified in paragraph
      6(a)(i).

     

    “Scheduled
      Pay Out Commencement Date”
means
      the Payment Date on September 20, 2010.

     

    “Series
      2006-A”
means
      the Series of the Asset Backed Fixed Rate Notes represented by the
      Notes.

     

    “Series
      2006-A Concentration Amount”
means,
      at any time, the Investor Percentage at such time of the sum of (a) the excess,
      if any, of (i) the aggregate Outstanding Principal Balance of all Eligible
      Installment Contract Receivables the final maturity date of which has been
      extended over (ii) 15% of the Outstanding Principal Balance of all Eligible
      Receivables, plus
      (b) the
      excess, if any, of (i) the aggregate Outstanding Principal Balance of all
      Eligible Revolving Charge Receivables that provide for a minimum monthly payment
      of less than 1/(the Original Contracted Term) of the highest outstanding balance
      since the last date on which such outstanding balance was zero or the final
      maturity date of which has been otherwise extended over (ii) the excess, if
      any,
      of (A) 15% of the Outstanding Principal Balance of all Eligible Receivables
      over
      (B) the aggregate Outstanding Principal Balance of all Eligible Installment
      Contract Receivables the final maturity date of which has been extended, in
      each
      case as of the end of the preceding Monthly Period.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Series
      2006-A Pay Out Event”
has
      the
      meaning specified in Section 9.

     

    “Series
      2006-A Termination Date”
means
      the earliest to occur of (a) the Payment Date on which the Notes, plus all
      other
      amounts due and owing to the Noteholders, are paid in full, (b) the Legal Final
      Payment Date and (c) the Indenture Termination Date.

     

    “Series
      Principal Shortfall”
means
      with respect to the Notes and any Series Transfer Date that falls during the
      Rapid Amortization Period, the excess, if any, of (a) the Investor Interest
      (but
      not less than the Note Principal) over (b) the Investor Principal Collections
      for such Series Transfer Date.

     

    “Shared
      Principal Collections”
means,
      with respect to any Series Transfer Date, either (a) the amount allocated
      to the Notes which may be applied to the “Series Principal Shortfall” with
      respect to other outstanding Series or (b) the amounts allocated to the notes
      of
      other Series which the applicable Series Supplements for such Series specify
      are
      to be treated as “Shared Principal Collections” and which may be applied to
      cover the Series Principal Shortfall with respect to the Notes.

     

    “Solvent”
means
      with respect to any Person that as of the date of determination both (A)(i)
      the
      then fair saleable value of the property of such Person is (y) greater than
      the total amount of liabilities (including Contingent Liabilities) of such
      Person and (z) not less than the amount that will be required to pay the
      probable liabilities on such Person’s then existing debts as they become
      absolute and matured considering all financing alternatives and potential asset
      sales reasonably available to such Person; (ii) such Person’s capital is
      not unreasonably small in relation to its business or any contemplated or
      undertaken transaction; and (iii) such Person does not intend to incur, or
      believe (nor should it reasonably believe) that it will incur, debts beyond
      its
      ability to pay such debts as they become due; and (B) such Person is
“solvent” within the meaning given that term and similar terms under applicable
      laws relating to fraudulent transfers and conveyances. For purposes of this
      definition, the amount of any contingent liability at any time shall be computed
      as the amount that, in light of all of the facts and circumstances existing
      at
      such time, represents the amount that can reasonably be expected to become
      an
      actual or matured liability.

     

    “Temporary
      Regulation S Global Note”
has
      the
      meaning specified in paragraph  6(a)(ii).

     

    “U.S.
      Person”
has
      the
      meaning specified in Regulation S.

     

    SECTION
      2.   Article
      3 of the Base Indenture.
      Article
      3
      shall be
      read in its entirety as follows and shall be applicable only to the
      Notes:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      3

     

    INITIAL
      ISSUANCE OF NOTES

     

    SECTION
      3.1. Initial
      Issuance.

     

    (a) Subject
      to satisfaction of the conditions precedent set forth in subsection (b)
      of this
Section 3.1,
      on the
      Closing Date, the Issuer will issue the Notes in accordance with Section 2.2
      of the
      Base Indenture and Section 6
      hereof
      in the aggregate initial principal amount equal to the Initial Note
      Principal.

     

    (b) The
      Notes
      will be issued on the Closing Date pursuant to subsection (a)
      above,
      only upon satisfaction of each of the following conditions with respect to
      such
      initial issuance:

     

    (i) The
      amount of each Note shall be equal to or greater than $500,000;

     

    (ii) The
      Coverage Test is satisfied;

     

    (iii) Such
      issuance and the application of the proceeds thereof shall not result in the
      occurrence of (1) a Pay Out Event for any Series, Servicer Default or an Event
      of Default, or (2) an event or occurrence, which, with the passing of time
      or
      the giving of notice thereof, or both, would become a Pay Out Event for any
      Series, Servicer Default or an Event of Default; and

     

    (iv) All
      required consents have been obtained and all other conditions precedent to
      the
      purchase of the Notes under the Note Purchase Agreement shall have been
      satisfied.

     

    (c) Upon
      receipt of the proceeds of such issuance by or on behalf of the Issuer, the
      Trustee shall, or shall cause the Transfer Agent and Registrar to, indicate
      in
      the Note Register the amount thereof.

     

    (d) The
      Issuer shall not issue additional Notes of this Series.

     

    SECTION
      3.   Servicing
      Compensation.
      The
      share of the Servicing Fee allocable to Series 2006-A with respect to any
      Series Transfer Date shall be equal to the Investor Percentage of the Servicing
      Fee for the relevant Monthly Period. The Servicing Fee shall be paid by the
      cash
      flows from the Trust Estate allocated to the Noteholders or the noteholders
      of
      other Series (as provided in the related series supplements) and in no event
      shall the Issuer, the Trustee or the Noteholders be liable therefor. The
      Servicing Fee allocable to Series 2006-A shall be payable to the Servicer solely
      to the extent amounts are available for distribution in respect thereof pursuant
      to paragraph
      5.15(a)(ii)
      and
subsection
      5.17(a).

     

    SECTION
      4.   Cleanup
      Call.

     

    (a)  The
      Notes
      shall be subject to purchase by the initial Servicer, at its option, in
      accordance with the terms specified in subsection 12.4(a)
      of the
      Base Indenture, on any Payment Date on or after the Payment Date on which the
      Investor Interest is reduced to an amount less than or equal to 10% of the
      Initial Note Principal.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  The
      deposit to the Payment Account required in connection with any such purchase
      will be equal to the sum of (a) the Note Principal, plus (b) accrued and unpaid
      interest on the Notes through the day preceding the Payment Date on which the
      purchase occurs, plus (c) any other amounts payable to the Noteholders pursuant
      to the Note Purchase Agreement, minus (d) the amounts, if any, on deposit
      at such Payment Date in the Payment Account for the payment of the foregoing
      amounts.

     

    SECTION
      5.   Delivery
      and Payment for the Notes.
      The
      Trustee shall execute, authenticate and deliver the Notes in accordance with
      Section 2.4
      of the
      Base Indenture and Section 6
      below.

     

    SECTION
      6.   Form
      of Delivery of the Notes; Depository; Denominations; Transfer
      Provisions.

     

    (a)  The
      Notes
      shall be delivered as Registered Notes representing Book-Entry Notes as provided
      in this subsection
      (a).
      For
      purposes of this Series Supplement, the term “Global
      Notes”
refers
      to the Restricted Global Notes, the Temporary Regulation S Global Notes and
      the
      Permanent Regulation S Global Notes, all as defined below.

     

    (i)  Restricted
      Global Note.
      The
      Notes to be sold in the United States will be issued in book-entry form and
      represented by one permanent global Note for each Class in fully registered
      form
      without interest coupons (the “Restricted
      Global Notes”),
      substantially in the form set forth as Exhibit
      A-1,
      B-1
      or
C-1
      hereto,
      as applicable, and will be sold, only in the United States (1) by the Issuer
      to
      an institutional “accredited investor” within the meaning of Regulation D under
      the Securities Act in reliance on an exemption from the registration
      requirements of the Securities Act and (2) thereafter offered and sold only
      (a)
      to a Person that is a qualified institutional buyer (“QIB”) in a transaction
      meeting the requirements of Rule 144A under the Securities Act (“Rule 144A”),
      (b) outside the United States to a non-U.S. Person in a transaction in
      compliance with Regulation S, (c) pursuant to a registration statement that
      has
      been declared effective under the Securities Act (and which continues to be
      effective at the time of such transfer under the Securities Act), (d) under
      the
      exemption from the registration requirements of the Securities Act provided
      by
      Rule 144 under the Securities Act, if available or (e) in a transaction
      otherwise exempt from the registration requirements of the Securities Act and
      applicable securities laws of any state of the United States and any other
      jurisdiction and based on an opinion of counsel, in form and substance approved
      by the Issuer or Transfer Agent, if the Issuer or the Transfer Agent and
      Registrar so requests, in each such case, in compliance with the Indenture
      and
      all applicable securities laws of any State of the United States or any other
      applicable jurisdiction, subject in each of the above cases to any requirement
      of law that the disposition of the seller’s property or the property of an
      investment account or accounts be at all times within the seller’s or account’s
      control, and shall be deposited with a custodian for, and registered in the
      name
      of a nominee of DTC, duly executed by the Issuer and authenticated by the
      Trustee as provided in the Base Indenture for credit to the accounts of the
      subscribers at DTC. The initial principal amount of the Restricted Global Notes
      may from time to time be increased or decreased by adjustments made on the
      records of the custodian for DTC, DTC or its nominee, as the case may be, as
      hereinafter provided. Interests in the Restricted Global Notes will be
      exchangeable for Definitive Notes only in accordance with the provisions of
      Section
      2.18
      of the
      Base Indenture.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii)  Temporary
      Regulation S Global Note; Permanent Regulation S Global Note.
      The
      Notes to be offered and sold to non-U.S. Persons outside of the United States
      and in reliance on Regulation S under the Securities Act (“Regulation
      S”),
      shall
      initially be issued in the form of one temporary global Note for each Class
      in
      fully registered form without interest coupons (the “Temporary
      Regulation S Global Notes”)
      substantially in the form attached hereto as Exhibit
      A-2, B-2
      or
C-2,
      as
      applicable, which shall be deposited with a custodian for, and registered in
      the
      name of a nominee of DTC, duly executed by the Issuer and authenticated by
      the
      Trustee as provided in the Base Indenture, for the credit to the subscribers’
accounts at Clearstream and Euroclear. Interests in a Temporary Regulation
      S
      Global Note will be exchangeable, in whole or in part, for interests in a
      corresponding permanent global Note in fully registered form without interest
      coupons (the “Permanent
      Regulation S Global Notes”),
      representing the Notes, substantially in the form attached hereto as
Exhibit
      A-3, B-3
      or
C-3,
      as
      applicable, in accordance with the provisions of the applicable Temporary
      Regulation S Global Note and this Series Supplement. Until the Exchange Date,
      interests in the Temporary Regulation S Global Notes may only be held through
      Euroclear or Clearstream (as indirect participants in DTC). The initial
      principal amount of the Temporary Regulation S Global Notes and the Permanent
      Regulation S Global Notes may from time to time be increased or decreased by
      adjustments made on the records of the custodian for DTC, DTC or its nominee,
      as
      the case may be, as hereinafter provided. Interests in the Permanent Regulation
      S Global Notes will be exchangeable for Definitive Notes only in accordance
      with
      the provisions of Section
      2.18
      of the
      Base Indenture.

     

    (b)  The
      Notes
      will be issuable in minimum denominations of $500,000.

     

    (c)  The
      Global Notes may be transferred, in whole and not in part, only to another
      nominee of DTC or to a successor of DTC or its nominee. Beneficial interests
      in
      the Global Notes may not be exchanged for Definitive Notes except in the limited
      circumstances described in Section 2.18
      of the
      Base Indenture; provided,
      however,
      that
      notwithstanding anything in the Indenture to the contrary, Definitive Notes
      shall not be issued in respect of any Temporary Regulation S Global Note unless
      the Restricted Period has expired and then only with respect to beneficial
      interests therein as to which the Trustee has received from Euroclear or
      Clearstream, as applicable, a certificate substantially in the form of
Exhibit
      E-2
      hereto.
      Beneficial interests in the Global Notes may be transferred only (i) to a Person
      that is a QIB in a transaction meeting the requirements of Rule 144A and whom
      the transferor has notified that it may be relying on the exemption from the
      registration requirements of the Securities Act provided by Rule 144A, (ii)
      outside the United States to non-U.S. Persons in a transaction in compliance
      with Regulation S, (iii) pursuant to a registration statement that has been
      declared effective under the Securities Act (and which continues to be effective
      at the time of such transfer under the Securities Act), (iv) under the exemption
      from the registration requirements of the Securities Act provided by Rule 144
      under the Securities Act, if available, or (v) in a transaction otherwise exempt
      from the registration requirements of the Securities Act and applicable
      securities laws of any state of the United States and any other jurisdiction
      and
      based on an opinion of counsel, in form and substance approved by the Issuer
      or
      Transfer Agent, if the Issuer or the Transfer Agent and Registrar so requests,
      in each such case, in compliance with the Indenture and all applicable
      securities laws of any State of the United States or any other applicable
      jurisdiction, subject in each of the above cases to any requirement of law
      that
      the disposition of the seller’s property or the property of an investment
      account or accounts be at all times within the seller’s or account’s control.
      Each transferee of a beneficial interest in a Global Note shall be deemed to
      have made the acknowledgments, representations and agreements set forth in
      subsection
      (d)
      hereof.
      Any such transfer shall also be made in accordance with the following
      provisions:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i)  Transfer
      of Interests Within a Global Note.
      Beneficial interests in a Global Note may be transferred to Persons who take
      delivery thereof in the form of a beneficial interest in the same Global Note
      in
      accordance with the transfer restrictions set forth in the foregoing paragraph
      of this subsection
      6(c)
      and the
      transferee shall be deemed to have made the representations contained in
subsection
      6(d).
      Notwithstanding the foregoing, if such transferor is relying on an exemption
      from the registration requirements of the Securities Act other than Rule 144A
      or
      Regulation S, such transferor shall provide the Issuer and the Transfer Agent
      and Registrar with a certificate substantially in the form of Exhibit
      E-1
      and, if
      requested by the Issuer or the Trustee, an opinion of counsel in form and
      substance acceptable to the Issuer and to the Transfer Agent and Registrar
      to
      the effect that such transfer is in compliance with the Securities
      Act.

     

    (ii)  Temporary
      Regulation S Global Note to Permanent Regulation S Global Note.
      Interests in a Temporary Regulation S Global Note will be exchanged for
      interests in the corresponding Permanent Regulation S Global Note, on and after
      the first day following the 40-day period (the “Restricted
      Period”)
      beginning on the later of the commencement of the offering of the Notes or
      the
      Closing Date on which the Trustee has received a certificate substantially
      in
      the form of Exhibit
      E-2
      (the
“Exchange
      Date”).
      To
      effect such exchange the Issuer shall execute and the Trustee shall authenticate
      one Permanent Regulation S Global Note for each Class, representing the
      principal amount of interests in the Temporary Regulation S Global Notes
      initially exchanged for interests in the Permanent Regulation S Global Notes.
      Such Permanent Regulation S Global Notes shall be deposited with a custodian
      for, and registered in the name of, a nominee of DTC. Upon any exchange of
      interests in any Temporary Regulation S Global Note for interests in the
      corresponding Permanent Regulation S Global Note, the Transfer Agent and
      Registrar shall endorse such Temporary Regulation S Global Note to reflect
      the
      reduction in the principal amount represented thereby by the amount so exchanged
      and shall endorse the corresponding Permanent Regulation S Global Note to
      reflect the corresponding increase in the amount represented thereby. The
      Temporary Regulation S Global Notes or the Permanent Regulation S Global Notes
      shall also be endorsed upon any cancellation of principal amounts upon surrender
      of interests in such Notes purchased by the Issuer or upon any repayment of
      the
      principal amount represented thereby in respect of such Notes.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii)  Restricted
      Global Note to Temporary Regulation S Global Note During the Restricted
      Period.
      If,
      prior to the Exchange Date, a holder of a beneficial interest in a Restricted
      Global Note wishes at any time to exchange its interest in such Restricted
      Global Note for an interest in the corresponding Temporary Regulation S Global
      Note, or to transfer its interest in such Restricted Global Note to a non-U.S.
      Person, in a transaction in compliance with Regulation S who wishes to take
      delivery thereof in the form of an interest in the corresponding Temporary
      Regulation S Global Note, such holder may, subject to this subsection 6(c)
      and the
      rules and procedures of DTC, exchange or cause the exchange or transfer of
      such
      interest for an equivalent beneficial interest in the corresponding Temporary
      Regulation S Global Note. Upon receipt by the Transfer Agent and Registrar
      of
      (1) instructions given in accordance with DTC’s procedures from an agent member
      directing the Transfer Agent and Registrar to credit or cause to be credited
      a
      beneficial interest in the applicable Temporary Regulation S Global Note in
      an
      amount equal to the beneficial interest in the corresponding Restricted Global
      Note to be exchanged or transferred, (2) a written order given in accordance
      with DTC’s procedures containing information regarding the Euroclear or
      Clearstream account to be credited with such increase and the name of such
      account, and (3) a certificate in the form of Exhibit
      E-3
      attached
      hereto given by the holder of such beneficial interest stating that the exchange
      or transfer of such interest has been made in compliance with the transfer
      restrictions applicable to the Notes and pursuant to and in accordance with
      Regulation S, the Transfer Agent and Registrar shall instruct DTC to reduce
      the
      applicable Restricted Global Note by the aggregate principal amount of the
      beneficial interest in such Restricted Global Note to be so exchanged or
      transferred and the Transfer Agent and Registrar shall instruct DTC,
      concurrently with such reduction, to increase the principal amount of the
      corresponding Temporary Regulation S Global Note by the aggregate principal
      amount of the beneficial interest in such Restricted Global Note to be so
      exchanged or transferred, and to credit or cause to be credited to the account
      of the Person specified in such instructions (who shall be the agent member
      of
      Euroclear or Clearstream, or both, as the case may be) a beneficial interest
      in
      such Temporary Regulation S Global Note equal to the reduction in the principal
      amount of such Restricted Global Note.

     

    (iv)  Restricted
      Global Note to Permanent Regulation S Global Note After the Exchange
      Date.
      If,
      after the Exchange Date, a holder of a beneficial interest in a Restricted
      Global Note registered in the name of DTC or its nominee wishes at any time
      to
      exchange its interest in such Restricted Global Note for an interest in the
      corresponding Permanent Regulation S Global Note, or to transfer its interest
      in
      such Restricted Global Note to a non-U.S. Person, in a transaction in compliance
      with Regulation S, who wishes to take delivery thereof in the form of an
      interest in the corresponding Permanent Regulation S Global Note, such holder
      may, subject to this subsection 6(c)
      and the
      rules and procedures of DTC, exchange or cause the exchange or transfer of
      such
      interest for an equivalent beneficial interest in the corresponding Permanent
      Regulation S Global Note. Upon receipt by the Transfer Agent and Registrar
      of
      (1) instructions given in accordance with DTC’s procedures from an agent member
      directing the Transfer Agent and Registrar to credit or cause to be credited
      a
      beneficial interest in the applicable Permanent Regulation S Global Note in
      an
      amount equal to the beneficial interest in the corresponding Restricted Global
      Note to be exchanged or transferred, (2) a written order given in accordance
      with DTC’s procedures containing information regarding the account to be
      credited with such increase and (3) a certificate in the form of Exhibit
      E-4
      attached
      hereto given by the holder of such beneficial interest stating that the exchange
      or transfer of such interest has been made in compliance with the transfer
      restrictions applicable to the Notes and pursuant to and in accordance with
      Regulation S, the Transfer Agent and Registrar shall instruct DTC to reduce
      the
      applicable Restricted Global Note by the aggregate principal amount of the
      beneficial interest in such Restricted Global Note to be so exchanged or
      transferred and the Transfer Agent and Registrar shall instruct DTC,
      concurrently with such reduction, to increase the principal amount of the
      corresponding Permanent Regulation S Global Note by the aggregate principal
      amount of the beneficial interest in such Restricted Global Note to be so
      exchanged or transferred, and to credit or cause to be credited to the account
      of the Person specified in such instructions a beneficial interest in such
      Permanent Regulation S Global Note equal to the reduction in the principal
      amount of such Restricted Global Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (v)  Temporary
      Regulation S Global Note to Restricted Global Note.
      If a
      holder of a beneficial interest in a Temporary Regulation S Global Note
      registered in the name of DTC or its nominee wishes at any time to exchange
      its
      interest in such Temporary Regulation S Global Note for an interest in the
      corresponding Restricted Global Note, or to transfer its interest in such
      Temporary Regulation S Global Note to a Person who wishes to take delivery
      thereof in the form of an interest in the corresponding Restricted Global Note,
      such holder may, subject to this subsection 6(c)
      and the
      rules and procedures of Euroclear or Clearstream and DTC, as the case may be,
      exchange or cause the exchange or transfer of such interest for an equivalent
      beneficial interest in the corresponding Restricted Global Note. Upon receipt
      by
      the Transfer Agent and Registrar of (1) instructions from Euroclear or
      Clearstream or DTC, as the case maybe, directing the Transfer Agent and
      Registrar to credit or cause to be credited a beneficial interest in the
      applicable Restricted Global Note equal to the beneficial interest in the
      corresponding Temporary Regulation S Global Note to be exchanged or transferred,
      such instructions to contain information regarding the agent member’s account
      with DTC to be credited with such increase, and, with respect to an exchange
      or
      transfer of an interest in a Temporary Regulation S Global Note after the
      Exchange Date, information regarding the agent member’s account with DTC to be
      debited with such decrease, and (2) with respect to an exchange or transfer
      of
      an interest in a Temporary Regulation S Global Note for an interest in the
      corresponding Restricted Global Note prior to the Exchange Date, a certificate
      in the form of Exhibit
      E-5
      attached
      hereto given by the holder of such beneficial interest and stating that the
      Person transferring such interest in such Temporary Regulation S Global Note
      believes that the Person acquiring such interest in the corresponding Restricted
      Global Note is a QIB and is obtaining such beneficial interest in a transaction
      meeting the requirements of Rule 144A, Euroclear or Clearstream or the Transfer
      Agent and Registrar, as the case may be, shall instruct DTC to reduce the
      applicable Temporary Regulation S Global Note by the aggregate principal amount
      of the beneficial interest in such Temporary Regulation S Global Note to be
      exchanged or transferred, and the Transfer Agent and Registrar shall instruct
      DTC, concurrently with such reduction, to increase the principal amount of
      the
      corresponding Restricted Global Note by the aggregate principal amount of the
      beneficial interest in such Temporary Regulation S Global Note to be so
      exchanged or transferred, and to credit or cause to be credited to the account
      of the Person specified in such instructions a beneficial interest in such
      Restricted Global Note equal to the reduction in the principal amount of such
      Temporary Regulation S Global Note.

     

    (vi)  Transfers
      of Interests in Permanent Regulation S Global Note.
      The
      Transfer Agent and Registrar shall register any transfer of interests in a
      Permanent Regulation S Global Note in accordance with Section 2.6
      of the
      Base Indenture to U.S. Persons without requiring any additional certification;
      provided,
      however,
      that
      all other transfer restrictions set forth in this Section 6
      shall
      remain in full force and effect and each such transferee shall be deemed to
      have
      made the representations and warranties set forth in subsection
      (d)
      below
      (but excluding the certification and opinion of counsel provisions of
paragraph
      (1)
      thereof).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)  Each
      transferee of a beneficial interest in a Global Note shall be deemed to have
      represented and agreed that:

     

    (1)  it
      either
      (A) (i) is a QIB, (ii) is aware that the sale to it is being made in reliance
      on
      Rule 144A and (iii) is acquiring the Notes for its own account or for the
      account of a QIB or (B) is a non-U.S. Person and is not acquiring the Notes
      for
      the account or benefit of a U.S. Person and is purchasing the Notes in an
      offshore transaction within the meaning of Regulation S or (C) is acquiring
      the Notes pursuant to another exemption from the registration requirements
      of
      the Securities Act and has furnished the Issuer and the Transfer Agent and
      Registrar any required certification and/or opinion of counsel as to such
      exemption in form and substance satisfactory to the Transfer Agent and
      Registrar;

     

    (2)  it
      understands and agrees that the Notes have not been and will not be registered
      under the Securities Act, and that, if in the future it decides to offer,
      resell, pledge or otherwise transfer such Notes, such Notes may be offered,
      sold, pledged or otherwise transferred only (a) to a Person that is a QIB in
      a
      transaction meeting the requirements of Rule 144A and whom the transferor has
      notified that it may be relying on the exemption form the registration
      requirements of the Securities Act provided by Rule 144A, (b) outside the United
      States to a non-U.S. Person in a transaction in compliance with Regulation
      S,
      (c) pursuant to a registration statement that has been declared effective under
      the Securities Act (and which continues to be effective at the time of such
      transfer under the Securities Act), (d) under the exemption from the
      registration requirements of the Securities Act provided by Rule 144 under
      the
      Securities Act, if available or (e) in a transaction otherwise exempt from
      the
      registration requirements of the Securities Act and applicable securities laws
      of any state of the United States and any other jurisdiction and based on an
      opinion of counsel, in form and substance approved by the Issuer or Transfer
      Agent, if the Issuer or the Transfer Agent and Registrar so requests, in each
      such case, in compliance with the Indenture and all applicable securities laws
      of any State of the United States or any other applicable jurisdiction, subject
      in each of the above cases to any requirement of law that the disposition of
      the
      seller’s property or the property of an investment account or accounts be at all
      times within the seller’s or account’s control;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (3)  if
      such
      transferee is acquiring any Notes as a fiduciary or agent for one or more
      investor accounts, it has sole investment discretion with respect to each such
      account, and it has full power to make the foregoing representations and
      agreements with respect to each such account;

     

    (4)  it
      understands that the following legend will be placed on the Notes unless the
      Issuer determines otherwise in compliance with applicable law:

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    (5)  it
      acknowledges that the Notes will be evidenced by Global Notes and that the
      foregoing restrictions apply to holders of beneficial interests in the Notes
      as
      well as to Holders of the Notes;

     

    (6)  it
      acknowledges that the Trustee, the Issuer, the initial purchasers or placement
      agents for the Notes and their Affiliates and others will rely upon the truth
      and accuracy of the foregoing acknowledgments, representations and agreements
      and agrees that if any of the acknowledgments, representations or agreements
      deemed to have been made by its purchase of such Notes is no longer accurate,
      it
      will promptly notify the Issuer and the initial purchasers or placement agents
      for the Notes in writing. If it is acquiring any Notes for one or more investor
      accounts, it represents that it has sole investment discretion with respect
      to
      each such account and that it has full power to make the foregoing
      acknowledgments, representations and agreements on behalf of each such account;
      and

     

    (7)  it
      acknowledges that either (i) it is not acquiring the Notes (or any interest
      therein) with the plan assets of an “employee benefit plan” as defined in
      Section 3(3) of ERISA, which is subject to Title I of ERISA, a “plan” as
      described in Section 4975(e)(1) of the Code, an entity deemed to hold plan
      assets of any of the foregoing, or a governmental plan subject to applicable
      law
      that is substantially similar to Section 406 of ERISA or Section 4975 of the
      Code or (ii) its purchase and holding of the Notes (or any interest therein)
      will not result in a non-exempt prohibited transaction under Section 406 of
      ERISA or Section 4975 of the Code (or, in the case of a governmental plan,
      any
      substantially similar applicable law).

     

    In
      addition, such transferee shall be responsible for providing additional
      information or certification, as shall be reasonably requested by the Trustee
      or
      Issuer, to support the truth and accuracy of the foregoing acknowledgments,
      representations and agreements, it being understood that such additional
      information is not intended to create additional restrictions on the transfer
      of
      the Notes.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)  Other
      Transfers or Exchanges.
      In the
      event that a Global Note is exchanged for Notes in definitive registered form
      without interest coupons, pursuant to Section 2.18
      of the
      Base Indenture, such Definitive Notes may be exchanged or transferred for one
      another only in accordance with such procedures as are substantially consistent
      with Section 2.18
      of
      the
      Base Indenture and the provisions of Section 6
      of this
      Series Supplement above (including the certification requirements intended
      to
      insure that such exchanges or transfers comply with Rule 144A or Regulation
      S,
      as the case may be) and as may be from time to time adopted by the Issuer and
      the Trustee, and such holder shall provide the Issuer and the Transfer Agent
      and
      Registrar with a certification to that effect (in substantially the form of
      Exhibit
      E-1
      hereto)
      and, if requested by the Issuer or the Trustee, an opinion of counsel in form
      and substance acceptable to the Issuer and to the Transfer Agent and Registrar
      to the effect that such transfer is in compliance with the Securities Act,
      and
      the transferee of any such Note shall be deemed to have made the representations
      set forth in subsection
      (d)
      above
      other than the representation contained in paragraph
      (5)
      thereof.

     

    SECTION
      7.   Article
      5 of Base Indenture.
      Sections
      5.1,
      5.2,
      5.3,
      5.4,
      5.5,
      5.6,
      5.7,
      5.8,
      5.9
      and
5.10
      of the
      Base Indenture shall be read in their entirety as provided in the Base
      Indenture. The following provisions, however, shall constitute part of
Article
      5
      of the
      Indenture solely for purposes of Series 2006-A and shall be applicable only
      to the Notes (except as otherwise provided in the following provisions or in
      another Series Supplement):

     

    ARTICLE
      5

     

    ALLOCATION
      AND APPLICATION OF COLLECTIONS

     

    SECTION
      5.11. Allocations.

     

    (a) Allocations
      of Collections.
      On each
      day any Collections are deposited in the Collection Account, the Servicer shall,
      prior to the close of business on such day, make the following deposits from
      the
      Collection Account:

     

    (i) Deposit
      into the Principal Account all Collections received in respect of Principal
      Receivables then on deposit in the Collection Account (such deposit to be
      applied in accordance with the Indenture and subsection 5.15(b));
      and

     

    (ii) Deposit
      into the Finance Charge Account all Collections received in respect of Finance
      Charges, Recoveries, Investment Earnings or otherwise (but not in respect of
      Principal Receivables) then on deposit in the Collection Account (such deposit
      to be applied in accordance with the Indenture and subsection 5.15(a)).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Excess
      Funding Collections.
      Any
      Collections deposited into the Excess Funding Account pursuant to Section 5.15
      or
5.20(e)
      shall be
      held in the Excess Funding Account and, prior to the commencement of the Rapid
      Amortization Period, shall be first applied in accordance with Section 5.17
      and then
      paid, first,
      to the
      Servicer Letter of Credit Bank to the extent of any amounts payable thereto
      by
      the Issuer under the reimbursement agreement for the Servicer Letter of Credit
      and, second,
      to the
      Issuer, in each case, on any date (so long as the Coverage Test remains
      satisfied (or will be satisfied on such date through the use of such Collections
      to pay for Subsequently Purchased Receivables from one or more Sellers) and
      such
      payment and the application thereof shall not result in the occurrence of (1)
      a
      Pay Out Event for any Series, a Servicer Default or an Event of Default, or
      (2)
      in the case of Permissible Uses of the type described in clauses (ii) and (iii)
      of the definition thereof, an event or occurrence, which, with the passing
      of
      time or the giving of notice thereof, or both, would become a Pay Out Event
      for
      any Series, Servicer Default or an Event of Default) to the extent of (and
      to be
      used solely for) Permissible Uses on such date as determined by the Servicer;
      provided,
      however,
      that if
      an Accumulation Period or an Amortization Period commences with respect to
      any
      Series, any funds on deposit in the Excess Funding Account shall be first
      applied in accordance with Section 5.17
      and then
      released from the Excess Funding Account, deposited in the Principal Account
      and
      treated as Shared Principal Collections to the extent needed to cover principal
      payments due to such Series; provided,
      however,
      that
      $10,000 shall remain on deposit in the Excess Funding Account for use to pay
      expenses of the Issuer not prohibited by the Transaction Documents, as
      determined by the Servicer.

     

    SECTION
      5.12. Determination
      of Monthly Interest.
      The
      amount of monthly interest payable on the Notes shall be determined as of each
      Determination Date and shall be an amount equal to the product of (i)(A) a
      fraction, the numerator of which is the actual number of days in the related
      Interest Period and the denominator of which is 360, times
      (B) the
      weighted average Note Rate in effect with respect to the related Interest
      Period, and (ii) the average daily outstanding principal balance of the
      Notes during such Interest Period (the “Monthly
      Interest”);
      provided,
      however,
      that in
      addition to Monthly Interest, an amount equal to the sum of (i) the amount
      of any unpaid Deficiency Amount, as defined below and (ii) an amount equal
      to the product (such product being herein called the “Additional
      Interest”)
      of
      (A) a fraction, the numerator of which is the actual number of days in the
      related Interest Period and the denominator of which is 360, times
      (B) a rate equal to 2% per annum over the Note Rate in effect with respect
      to the related Interest Period, times
      (C) any Deficiency Amount, as defined below (or the portion thereof which
      has not theretofore been paid to Noteholders) shall also be payable to the
      Noteholders. The “Deficiency
      Amount”
for
      any
      Determination Date shall be equal to the excess, if any, of (x) the sum of
      the Monthly Interest, the Additional Interest and the Deficiency Amount as
      determined pursuant to the preceding sentence for the Interest Period ended
      immediately prior to the preceding Payment Date, over (y) the amount
      actually paid in respect thereof on the preceding Payment Date; provided,
      that
      the
      Deficiency Amount on the initial Determination Date shall be zero.

     

    SECTION
      5.13. Determination
      of Monthly Principal.
      The
      amount on deposit in the Principal Account allocable to the repayment of
      principal of the Notes shall be determined as of each Series Transfer Date
      (“Monthly
      Principal”),
      beginning with the first Series Transfer Date occurring after the Controlled
      Amortization Period or the Rapid Amortization Period begins, and shall be equal
      to the lesser of (i) the Available Investor Principal Collections on deposit
      in
      the Principal Account on such Series Transfer Date, (ii) the Investor Interest
      (after taking into account any adjustments to be made on such Series Transfer
      Date pursuant to Section
      5.16)
      on such
      Series Transfer Date and (iii) during the Controlled Amortization Period, the
      Controlled Distribution Amount.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      5.14. Coverage
      of Required Amount.

     

    (a) On
      or
      before each Series Transfer Date, the Servicer shall determine the amount (the
      “Required
      Amount”),
      if
      any, by which an amount equal to the sum of (i) the Monthly Interest for such
      Series Transfer Date, plus (ii) the Deficiency Amount, if any, for such Series
      Transfer Date, plus (iii) the Additional Interest, if any, for such Series
      Transfer Date, plus (iv) the Investor Percentage of the Trustee and Back-Up
      Servicer Fees and Expenses for such Series Transfer Date, plus (v) the
      Investor Percentage of the Servicing Fee for the prior Monthly Period, plus
      (vi)
      any amounts described in clauses (iv) and (v) above that were due but not paid
      on any prior Series Transfer Date, plus (vii) the Aggregate Investor Default
      Amount, if any, for the prior Monthly Period exceeds the Available Funds for
      the
      related Monthly Period.

     

    (b) In
      the
      event that the Required Amount for such Series Transfer Date is greater than
      zero, (i) the Servicer shall give written notice to the Trustee of such
      positive Required Amount on or before such Series Transfer Date, and
      (ii) to the extent available in each case, the Required Amount shall be
      paid first
      from the
      Finance Charge Account, and second
      from the
      Excess Funding Account on such Series Transfer Date pursuant to subsection
      5.17(a).

     

    SECTION
      5.15. Monthly
      Payments.
      On or
      before each Series Transfer Date, the Servicer shall instruct the Trustee in
      writing (which writing shall be substantially in the form of the Monthly
      Servicer Report attached as Exhibit
      A
      to the
      Servicing Agreement) to withdraw, and the Trustee, acting in accordance with
      such instructions, shall withdraw on such Series Transfer Date or the related
      Payment Date, as applicable, to the extent of the funds credited to the relevant
      accounts, the amounts in respect of the Notes required to be withdrawn from
      the
      Finance Charge Account, the Principal Account, the Payment Account and the
      Cash
      Reserve Account as follows:

     

    (a) An
      amount
      equal to the Available Funds deposited into the Finance Charge Account for
      the
      related Monthly Period shall be distributed on each Series Transfer Date in
      the
      following priority:

     

    (i) first,
      an
      amount equal to the Investor Percentage of the Trustee and Back-Up Servicer
      Fees
      and Expenses for such Series Transfer Date (plus the Investor Percentage of
      any
      Trustee and Back-Up Servicer Fees and Expenses due but not paid to the Trustee
      on any prior Series Transfer Date) shall be paid to the Trustee and,
second,
      an
      amount equal to Monthly Interest for such Series Transfer Date, plus the amount
      of any Deficiency Amount for such Series Transfer Date, plus the amount of
      any
      Additional Interest for such Series Transfer Date shall be deposited by the
      Trustee into the Payment Account for distribution to the Class A Noteholders,
      Class B Noteholders and Class C Noteholders (based on the amounts payable
      thereto determined in accordance with the respective Note Rates and distributed
      on a pari
      passu basis)
      on
      the related Payment Date (the
      “Required Interest Distribution”);

     

    (ii) an
      amount
      equal to the Investor Percentage of the Servicing Fee for such Series Transfer
      Date (plus the Investor Percentage of any Servicing Fee due but not paid to
      the
      Servicer on any prior Series Transfer Date) shall be paid to the
      Servicer;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii) an
      amount
      equal to the Aggregate Investor Default Amount, if any, for the preceding
      Monthly Period shall be treated as a portion of Investor Principal Collections
      and deposited into the Principal Account on such Series Transfer
      Date;

     

    (iv) an
      amount
      equal to the excess, if any, of the Cash Reserve Account Required Amount over
      the amount already on deposit in the Cash Reserve Account shall be deposited
      into the Cash Reserve Account;

     

    (v) to
      the
      extent the Available Issuer Interest is greater than zero (after giving effect
      to all other reductions thereof on such date and the payment pursuant to this
      clause (v) and the corresponding provision of each other Series
      Supplement), an amount equal to the Investor Percentage of any amounts payable
      to the Servicer Letter of Credit Bank by the Issuer under the reimbursement
      agreement for the Servicer Letter of Credit shall be paid to the Servicer Letter
      of Credit Bank;

     

    (vi) to
      the
      extent the Available Issuer Interest is greater than zero (after giving effect
      to all other reductions thereof on such date and the payment pursuant to this
      clause (vi) and the corresponding provision of each other Series
      Supplement), an amount equal to the Investor Percentage of any unreimbursed
      expenses of the Trustee shall be paid to the Trustee; and

     

    (vii) the
      balance, if any, shall constitute Excess Spread and shall be allocated and
      distributed as set forth in Section 5.17.

     

    (b) During
      the Revolving Period (unless the next Business Day after such Series Transfer
      Date is the Scheduled Pay Out Commencement Date), an amount equal to the
      Available Investor Principal Collections deposited into the Principal Account
      for the related Monthly Period shall be distributed on each Series Transfer
      Date
      in the following priority:

     

    (i) an
      amount, not in excess of the Principal Reallocation Amount, to pay or deposit
      any amounts described in clauses
      (a)(i),
      (ii),
      (iv),
      (v)
      and (vi)
      above (in such order) that remain unpaid or undeposited after giving effect
      to
      the application of funds, pursuant to clause
      (a)
      above;

     

    (ii) an
      amount
      equal to the lesser of (A) the product of (1) a fraction, the numerator of
      which
      is equal to the Available Investor Principal Collections remaining after the
      application specified in paragraph
      5.15(b)(i)
      above
      and the denominator of which is equal to the sum of the portion of the
“Available
      Investor Principal Collections”
for
      each Series that are available for sharing as specified in the related Series
      Supplement and (2) the Cumulative Series Principal Shortfall, if any, and (B)
      Available Investor Principal Collections remaining after the application
      specified in paragraph 5.15(b)(i)
      above,
      shall remain in the Principal Account to be treated as Shared Principal
      Collections and applied to Series other than this Series 2006-A;
      and

     

    (iii) the
      balance, if any, shall be deposited into the Excess Funding
      Account.

     

    (c) (A) During
      the Controlled Amortization Period (or if the next Business Day after such
      Series Transfer Date is the Scheduled Pay Out Commencement Date), an amount
      equal to the Available Investor Principal Collections deposited into the
      Principal Account for the related Monthly Period shall be distributed on each
      Series Transfer Date in the following priority:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i) an
      amount
      equal to the Monthly Principal for such Series Transfer Date shall be deposited
      into the Payment Account;

     

    (ii) an
      amount, not in excess of the Principal Reallocation Amount, to pay or deposit
      any amounts described in clauses(a)(i),
      (ii),
      (iv)
      and
(v)
      above
      (in such order) that remain unpaid or undeposited after giving effect to the
      application of funds, pursuant to clause
      (a)
      above;

     

    (iii) an
      amount
      equal to the lesser of (A) the product of (1) a fraction, the numerator of
      which
      is equal to the Available Investor Principal Collections remaining after the
      application specified in paragraphs
      5.15(c)(A)(i)
      and
(ii)
      above
      and the denominator of which is equal to the sum of the “Available
      Investor Principal Collections”
for
      each Series that are available for sharing as specified in the related Series
      Supplement and (2) the Cumulative Series Principal Shortfall, if any, and (B)
      the Available Investor Principal Collections remaining after the application
      specified in paragraphs
      5.15(c)(A)(i)
      and
(ii)
      above,
      shall remain in the Principal Account to be treated as Shared Principal
      Collections and applied to Series other than this Series 2006-A;
      and

     

    (iv) the
      balance, if any, shall be deposited into the Excess Funding
      Account.

     

    (B) During
      the Rapid Amortization Period, an amount equal to the Available Investor
      Principal Collections deposited into the Principal Account for the related
      Monthly Period shall be distributed on each Series Transfer Date in the
      following priority:

     

    (i) an
      amount
      equal to the Monthly Principal for such Series Transfer Date shall be deposited
      into the Payment Account;

     

    (ii) an
      amount, not in excess of the Principal Reallocation Amount, to pay or deposit
      any amounts described in clauses(a)(i),
      (ii),
      (iv)
      and
(v)
      above
      (in such order) that remain unpaid or undeposited after giving effect to the
      application of funds, pursuant to clause
      (a)
      above;

     

    (iii) an
      amount
      equal to the lesser of (A) the product of (1) a fraction, the numerator of
      which
      is equal to the Available Investor Principal Collections remaining after the
      application specified in paragraphs
      5.15(c)(B)(i)
      and
(ii)
      above
      and the denominator of which is equal to the sum of the “Available
      Investor Principal Collections”
for
      each Series that are available for sharing as specified in the related Series
      Supplement and (2) the Cumulative Series Principal Shortfall, if any, and (B)
      the Available Investor Principal Collections remaining after the application
      specified in paragraphs
      5.15(c)(B)(i)
      and
(ii)
      above,
      shall remain in the Principal Account to be treated as Shared Principal
      Collections and applied to Series other than this Series 2006-A;
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv) the
      balance, if any, shall be deposited into the Excess Funding
      Account.

     

    (d) On
      each
      Payment Date, the Trustee, acting in accordance with instructions from the
      Servicer, shall pay to the Noteholders (based on the amounts payable thereto
      determined in accordance with the respective Note Rates and distributed on
      a
pari
      passu
      basis)
      the amount deposited into the Payment Account pursuant to paragraph
      5.15(a)(i)
      (including, without limitation, indirectly pursuant to paragraphs 5.15(b)(i)
      and
(c)(ii)
      above)
      on the immediately preceding Series Transfer Date.

     

    (e) On
      the
      first Payment Date occurring after the Controlled Amortization Period or the
      Rapid Amortization Period begins, and on each Payment Date thereafter, the
      Trustee, acting in accordance with instructions from the Servicer, shall pay
      the
      amount deposited into the Payment Account pursuant to paragraph
      5.15(c)
      on the
      immediately preceding Series Transfer Date to the following Persons or accounts
      (as the case may be) in the following priority:

     

    (i) to
      the
      Class A Noteholders, an amount equal to the least of (A) the Monthly Principal,
      (B) the Class A Note Principal and (C) during the Controlled Amortization
      Period, the Class A Controlled Distribution Amount (the “Required
      Class A Principal Distribution”);

     

    (ii) to
      the
      Class B Noteholders, an amount equal to the least of (A) the Monthly Principal
      minus the amount distributed pursuant to clause
      (i)
      above, (B) the Class B Note Principal and (C) during the Controlled Amortization
      Period, the Class B Controlled Distribution Amount (the “Required
      Class B Principal Distribution”);

     

    (iii) to
      the
      Class C Noteholders, an amount equal to the least of (A) the Monthly Principal
      minus the amount distributed pursuant to clauses
      (i)
      and
(ii)
      above,
      (B) the Class C Note Principal and (C) during the Controlled Amortization
      Period, the Class C Controlled Distribution Amount (the “Required
      Class C Principal Distribution”);

     

    (iv) to
      the
      Noteholders, any other amounts (including, without limitation, accrued and
      unpaid interest) payable thereto pursuant to any Transaction
      Document;

     

    (v) to
      the
      extent the Available Issuer Interest is greater than zero (after giving effect
      to all other reductions thereof on such date and the payment pursuant to this
      clause (v) and the corresponding provision of each other Series
      Supplement), to the Trustee to pay unreimbursed expenses of the Trustee;
      and

     

    (vi) the
      balance, if any, shall be deposited into the Excess Funding
      Account.

     

    (f) On
      any
      Redemption Date, the amounts required to be on deposit in the Payment Account
      pursuant to Section 4,
      shall
      be paid to the following Persons:

     

    (i) to
      the
      Class A Noteholders, the Class A Note Principal;

     

    (ii) to
      the
      Class B Noteholders, the Class B Note Principal;

     

    (iii) to
      the
      Class C Noteholders, the Class C Note Principal; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv) to
      the
      Noteholders, any other amounts (including, without limitation, accrued and
      unpaid interest) payable thereto pursuant to the Note Purchase
      Agreement.

     

    (g) On
      each
      Payment Date, the Trustee, acting in accordance with instructions from the
      Servicer, shall pay the amount on deposit in the Cash Reserve Account to the
      following Persons in the following priority:

     

    (i) to
      the
      Noteholders (based on the amounts payable thereto determined in accordance
      with
      the respective Note Rates and distributed on a pari
      passu
      basis),
      an amount equal to the excess, if any, of (A) the Required Interest
      Distributions over (B) the amount distributed thereto pursuant to subsection
      5.15(d)
      ;

     

    (ii) if
      such
      Payment Date is the Legal Final Payment Date, to the Class A Noteholders, an
      amount equal to the excess, if any, of (A) the Class A Note Principal over
      (B)
      the amount distributed thereto pursuant to paragraph
      5.15(e)(i);

     

    (iii) if
      such
      Payment Date is the Legal Final Payment Date, to the Class B Noteholders, an
      amount equal to the excess, if any, of (A) the Class B Note Principal over
      (B)
      the amount distributed thereto pursuant to paragraph
      5.15(e)(ii);
      and

     

    (iv) if
      such
      Payment Date is the Legal Final Payment Date, to the Class C Noteholders, am
      amount equal to the excess, if any, of (A) the Class C Note Principal over
      (B)
      the amount distributed thereto pursuant to paragraph
      5.15(e)(iii).

     

    SECTION
      5.16. Investor
      Charge-Offs.

     

    (a) On
      or
      before each Series Transfer Date, the Servicer shall calculate the Aggregate
      Investor Default Amount. If, on any Series Transfer Date, the Aggregate Investor
      Default Amount exceeds the aggregate amount to be distributed with respect
      thereto for the relevant Monthly Period pursuant to subsection 5.15(a)(iii)
      and
Section
      5.17(a),
      the
      Investor Interest shall be reduced by the amount of such excess, but only to
      the
      extent such excess exceeds the Investor Percentage (determined with regard
      to
      only (and only to the extent of) those Series with respect to which the
“Investor Interest” is being so reduced with respect to Defaulted Receivables
      during such Monthly Period) of the Available Issuer Interest (such reduction,
      an
“Investor
      Charge-Off”).
      The
      Investor Interest shall thereafter be reimbursed on any Series Transfer Date
      by
      the amount of Excess Spread and funds on deposit in the Excess Funding Account
      allocated and available for such purpose pursuant to subsection 5.17(b).

     

    (b) Except
      as
      otherwise expressly provided herein, if losses and investment expenses
      attributable to the investment of amounts on deposit in any Trust Account or
      any
      Series Account exceed interest and investment earnings in respect of such
      amounts during any Monthly Period, the net losses and expenses shall be
      allocated first
      to the
      Issuer Interest and second
      between
      the “Investor Interests” of all outstanding Series, in the same proportion that
      losses in respect of Principal Receivables are so allocated for such Monthly
      Period.

     

    SECTION
      5.17. Allocation
      of Excess Amounts.
      On or
      before each Series Transfer Date, the Trustee, acting pursuant to the Servicer’s
      instructions, shall apply Excess Spread in the Finance Charge Account and to
      the
      extent necessary (to cover amounts described in clauses (a) and (b) below)
      transfer funds from the Excess Funding Account (after giving effect to the
      deposits to be made therein on such date) to the Finance Charge Account in
      order
      to make the following distributions on each Series Transfer Date (in the
      following order of priority) for the related Monthly Period:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) an
      amount
      equal to the Required Amount, if any, with respect to such Series Transfer
      Date
      will be used to fund such Required Amount and be applied in accordance with,
      and
      in the priority set forth in, subsection 5.15(a);

     

    (b) an
      amount
      equal to the aggregate amount by which the Investor Interest has been reduced
      on
      previous Series Transfer Dates (but has not been reimbursed) for reasons other
      than a reduction of the Required Reserve Amount and/or the payment of principal
      to the Noteholders will be treated as a portion of Investor Principal
      Collections and deposited into the Principal Account on such Series Transfer
      Date; and

     

    (c) any
      remaining Excess Spread shall be treated as a portion of Investor Principal
      Collections and deposited into the Principal Account on such Series Transfer
      Date.

     

    To
      the
      extent that there are insufficient funds in the Excess Funding Account to make
      all payments required under subsections 5.17(a)
      and
(b)
      above
      and under the corresponding provisions for each other Series, the amount on
      deposit in the Excess Funding Account shall be allocated to each Series on
      a
pro rata
      basis
      (based on the “Investor Interest” of each such Series).

     

    SECTION
      5.18. Servicer’s
      Failure to Make a Deposit or Payment.
      If the
      Servicer fails to make, or give instructions to make, any payment, deposit
      or
      withdrawal (other than as required by subsection 12.4(a)
      and
Section 12.1)
      required to be made or given by the Servicer at the time specified in the Base
      Indenture or this Series Supplement (including applicable grace periods), the
      Trustee shall make such payment, deposit or withdrawal from the applicable
      account without instruction from the Servicer. The Trustee shall be required
      to
      make any such payment, deposit or withdrawal hereunder only to the extent that
      the Trustee has sufficient information to allow it to determine the amount
      thereof. The Servicer shall, upon request of the Trustee, promptly provide
      the
      Trustee with all information necessary to allow the Trustee to make such
      payment, deposit or withdrawal. Such funds or the proceeds of such withdrawal
      shall be applied by the Trustee in the manner in which such payment or deposit
      should have been made by the Servicer.

     

    SECTION
      5.19. Shared
      Principal Collections.

     

    (a) The
      portion of Shared Principal Collections allocable to Series 2006-A on deposit
      in
      the Principal Account on any Series Transfer Date shall be treated and applied
      as an Available Investor Principal Collection pursuant to Section 5.15.

     

    (b) “Shared
      Principal Collections allocable to Series 2006-A”
on
      any
      Series Transfer Date means an amount equal to the Series Principal Shortfall,
      if
      any, with respect to Series 2006-A on such Series Transfer Date;
provided,
      however,
      that if
      the aggregate amount of Shared Principal Collections for all Series for such
      Series Transfer Date is less than the Cumulative Series Principal Shortfall
      for
      such Series Transfer Date, then “Shared Principal Collections allocable to
      Series 2006-A” on such Series Transfer Date shall equal the product of (i)
      Shared Principal Collections for all Series for such Series Transfer Date and
      (ii) a fraction, the numerator of which is the Series Principal Shortfall with
      respect to Series 2006-A and the denominator of which shall be the aggregate
      amount of “Cumulative Series Principal Shortfall” for all Series for such Series
      Transfer Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) Solely
      for the purpose of determining the amount of Available Investor Principal
      Collections to be treated as Shared Principal Collections on any Series Transfer
      Date allocable to other Series, on each Determination Date, the Servicer shall
      determine the Required Amount and Excess Spread as of such Determination Date
      for the following Series Transfer Date.

     

    SECTION
      5.20. Cash
      Reserve Account.

     

    (a) The
      Servicer has established and maintained and shall continue to maintain, with
      a
      Qualified Institution, in the name of the Trustee, on behalf of the Issuer,
      for
      the benefit of the Secured Parties in Series 2006-A, a segregated trust account
      (the “Cash
      Reserve Account”),
      bearing a designation clearly indicating that the funds deposited therein are
      held for the benefit of such Secured Parties. The Trustee shall possess all
      right, title and interest in all funds on deposit from time to time in the
      Cash
      Reserve Account and in all proceeds thereof. The Cash Reserve Account shall
      be
      under the sole dominion and control of the Trustee for the benefit of the
      Secured Parties in Series 2006-A, and the Trustee shall be the entitlement
      holder of the Cash Reserve Account. If at any time the institution holding
      the
      Cash Reserve Account ceases to be a Qualified Institution, the Trustee shall
      notify the Rating Agency and within 10 Business Days establish a new Cash
      Reserve Account meeting the conditions specified above with a Qualified
      Institution, and shall transfer any cash or any investments to such new Cash
      Reserve Account. The Trustee, at the direction of the Servicer, shall (i) make
      withdrawals from the Cash Reserve Account from time to time in accordance with
      subsection
      5.15(g)
      and (ii)
      make deposits into the Cash Reserve Account as specified in paragraph 5.15(a)(iv).

     

    (b) Funds
      on
      deposit in the Cash Reserve Account shall be invested by the Trustee (at the
      Servicer’s written direction) in Permitted Investments. Funds on deposit in the
      Cash Reserve Account on any Payment Date, after giving effect to any withdrawals
      that day, shall be invested in Permitted Investments that will mature so that
      such funds will be available for withdrawal on or before the next Payment Date.
      The Trustee shall:

     

    (i) hold
      each
      Permitted Investment (other than such as are described in clause
      (c)
      of the
      definition thereof) that constitutes investment property through a securities
      intermediary, which securities intermediary shall (I) agree that such investment
      property shall at all times be credited to a securities account of which the
      Trustee is the entitlement holder, (II) comply with entitlement orders
      originated by the Trustee without the further consent of any other person or
      entity, (III) agree that all property credited to such securities account shall
      be treated as a financial asset, (IV) waive any lien on, security interest
      in,
      or right of set-off with respect to any property credited to such securities
      account, and (V) agree that its jurisdiction for purposes of Section 8-110
      and
      Section 9-305(a)(3) of the UCC shall be New York, and that such agreement shall
      be governed by the laws of the State of New York; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii) maintain
      for the benefit of the Secured Parties relating to Series 2006-A, possession
      or
      control of each other Permitted Investment (including any negotiable
      instruments, if any, evidencing such Permitted Investments) not described in
      clause
      (i)
      above
      (other than such as are described in clause
      (c)
      of the
      definition thereof); provided,
      however,
      that no
      Permitted Investment shall be disposed of prior to its maturity date if such
      disposition would result in a loss. Terms used in clause
      (i)
      above
      that are defined in the New York UCC and not otherwise defined herein shall
      have
      the meaning set forth in the New York UCC.

     

    (c) All
      interest and earnings (net of losses and investment expenses) accrued on funds
      on deposit in the Cash Reserve Account shall be treated as Investment
      Earnings.

     

    (d)
       On
      the
      Closing Date, the Trustee, on behalf of the Issuer, shall deposit $8,000,000
      into the Cash Reserve Account from the net proceeds of the sale of the
      Notes.

     

    (e) Amounts
      on deposit in the Cash Reserve Account on any Payment Date (after giving effect
      to distributions therefrom pursuant to Section
      5.15(g))
      in
      excess of the Cash Reserve Account Required Amount shall be deposited by the
      Trustee, at the direction of the Servicer, into the Excess Funding
      Account.

     

    SECTION
      5.21. Excess
      Funding Account.

     

    (a) The
      Servicer has established and maintained and shall continue to maintain, with
      a
      Qualified Institution, in the name of the Trustee, on behalf of the Issuer,
      for
      the benefit of the Secured Parties, a segregated trust account (the
“Excess
      Funding Account”),
      bearing a designation clearly indicating that the funds deposited therein are
      held for the benefit of such Secured Parties. The Trustee shall possess all
      right, title and interest in all funds on deposit from time to time in the
      Excess Funding Account and in all proceeds thereof. The Excess Funding Account
      shall be under the sole dominion and control of the Trustee for the benefit
      of
      the Secured Parties, and the Trustee shall be the entitlement holder of the
      Excess Funding Account. If at any time the institution holding the Excess
      Funding Account ceases to be a Qualified Institution, the Trustee shall notify
      the Rating Agency and within ten (10) Business Days establish a new Excess
      Funding Account meeting the conditions specified above with a Qualified
      Institution, and shall transfer any cash or any investments to such new Excess
      Funding Account. The Trustee, at the direction of the Servicer, shall (i) make
      withdrawals from the Excess Funding Account from time to time for the purposes
      set forth in subsection
      5.11(b)
      and any
      comparable provision of any other Series Supplement and (ii) make deposits
      into
      the Excess Funding Account as specified in subsections 5.11(b)
      and
5.20(e)
      and any
      comparable provision of any other Series Supplement.

     

    (b) Funds
      on
      deposit in the Excess Funding Account shall be invested by the Trustee (at
      the
      Servicer’s written discretion) in Permitted Investments. Funds on deposit in the
      Excess Funding Account on any Series Transfer Date, after giving effect to
      any
      withdrawals that day, shall be invested in Permitted Investments that will
      mature so that such funds will be available for withdrawal on or before the
      next
      Series Transfer Date. The Trustee shall:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i) hold
      each
      Permitted Investment (other than such as are described in clause (c) of the
      definition thereof) that constitutes investment property through a securities
      intermediary, which securities intermediary shall (I) agree that such investment
      property shall at all times be credited to a securities account of which the
      Trustee is the entitlement holder, (II) comply with entitlement orders
      originated by the Trustee without the further consent of any other person or
      entity, (III) agree that all property credited to such securities account shall
      be treated as a financial asset, (IV) waive any lien on, security interest
      in,
      or right of set-off with respect to any property credited to such securities
      account, and (V) agree that its jurisdiction for purposes of Sections 8-110
      and
      Section 9-305(a)(3) of the UCC shall be New York, and that such agreement shall
      be governed by the laws of the State of New York; and

     

    (ii) maintain
      for the benefit of the Secured Parties, possession or control of each other
      Permitted Investment (including any negotiable instruments, if any, evidencing
      such Permitted Investments) not described in clause (i) above (other than such
      as are described in clause (c) of the definition thereof); provided
      that no
      Permitted Investment shall be disposed of prior to its maturity date if such
      disposition would result in a loss. Terms used in clause (i) above that are
      defined in the New York UCC and not otherwise defined herein shall have the
      meaning set forth in the New York UCC.

     

    (c) All
      interest and earnings (net of losses and investment expenses) accrued on funds
      on deposit in the Excess Funding Account to the extent allocable to this Series
      shall be treated as Collections, deposited into the Finance Charge Account
      and
      applied in accordance with the Indenture.

     

    SECTION
      8.   Article
      6 of the Base Indenture.
      Article
      6
      of the
      Base Indenture shall read in its entirety as follows and shall be applicable
      only to the Noteholders:

     

    ARTICLE
      6

     

    DISTRIBUTIONS
      AND REPORTS

     

    SECTION
      6.1. Distributions.

     

    (a) On
      each
      Payment Date, the Trustee shall distribute (in accordance with the Monthly
      Servicer Report delivered by the Servicer on or before the related Series
      Transfer Date pursuant to subsection 2.09(a)
      of the
      Servicing Agreement) to each Noteholder of record on the immediately preceding
      Record Date (other than as provided in Section 12.5
      respecting a final distribution), such Noteholder’s pro rata
      share
      (based on the aggregate Investor Interests represented by the Notes held by
      such
      Noteholder) of the amounts on deposit in the Payment Account that are payable
      to
      the Noteholders pursuant to Section 5.15
      by wire
      transfer to an account designated by such Noteholders, except that,
      with
      respect to Notes registered in the name of the nominee of a Clearing Agency,
      such distribution shall be made in immediately available funds.

     

    (b) Notwithstanding
      anything to the contrary contained in the Base Indenture or this Series
      Supplement, if the amount distributable in respect of principal on the Notes
      on
      any Payment Date is less than one dollar, then no such distribution of principal
      need be made on such Payment Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      6.2. Monthly
      Noteholders’ Statement.

     

    (a) On
      or
      before each Payment Date, the Trustee shall forward to each Noteholder, with
      respect to each Noteholder’s interest and to the Rating Agency and each Notice
      Person a statement substantially in the form of Exhibit
      D
      hereto
      prepared by the Servicer and delivered to the Trustee on the preceding
      Determination Date and setting forth, among other things, the following
      information:

     

    (i) the
      total
      amount distributed to Class A Noteholders, Class B Noteholders and Class C
      Noteholders;

     

    (ii) the
      amount of such distribution allocable to Monthly Principal;

     

    (iii) the
      amount of such distribution allocable to Trustee and Back-Up Servicer Fees
      and
      Expenses, Monthly Interest, Deficiency Amounts and Additional Interest,
      respectively;

     

    (iv) the
      amount of Collections of Principal Receivables received during the related
      Monthly Period and allocated in respect of the Notes;

     

    (v) the
      amount of Recoveries, premium refunds and Collections of Finance Charges
      received during the related Monthly Period and allocated in respect of the
      Notes;

     

    (vi) the
      aggregate Outstanding Principal Balance of the Receivables, the Issuer Interest,
      the Investor Interest, the Floating Investor Percentage and the Fixed Investor
      Percentage as of the end of the preceding Monthly Period;

     

    (vii) the
      aggregate Outstanding Principal Balance of Receivables, including earned and
      unearned Finance Charges, but excluding bankrupt accounts and accounts in
      repossession, which were 1-30 days, 31-60 days, 61-90 days, 91-120 days, 121-180
      days and more than 180 days delinquent, respectively, as of the end of the
      preceding Monthly Period;

     

    (viii) the
      Net
      Portfolio Yield, Gross Loss Rate and the Aggregate Investor Default Amount
      as of
      the end of the preceding Monthly Period;

     

    (ix) the
      aggregate amount of Investor Charge-Offs and other reductions in the absence
      of
      principal distributions on the Investor Interests for such Series Transfer
      Date;

     

    (x) the
      aggregate amount of Investor Charge-Offs and other reductions in the absence
      of
      principal distributions on the Investor Interests deemed to have been reimbursed
      on such Series Transfer Date;

     

    (xi) the
      Class
      A Note Principal, the Class B Note Principal and the Class C Note Principal,
      as
      of the end of the day on the Payment Date;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (xii) the
      average daily balance of the Class A Notes, Class B Notes and Class C Notes
      for
      the related Interest Period;

     

    (xiii) the
      amount of the Servicing Fee and the Investor Percentage of the Servicing Fee
      for
      such Series Transfer Date;

     

    (xiv) the
      Note
      Rate for each of the Class A Notes, the Class B Notes and the Class C Notes
      for
      the Interest Period ending on the day before such Payment Date;

     

    (xv) the
      amount of Available Funds on deposit in the Finance Charge Account on the
      related Series Transfer Date;

     

    (xvi) the
      date
      on which the Rapid Amortization Period commenced, if applicable;

     

    (xvii) the
      Cash
      Option Amount, if any;

     

    (xviii) the
      Minimum Issuer Interest, Available Issuer Interest and Aggregate Net Investor
      Charge-Offs, if any, as of the end of the preceding Monthly Period;

     

    (xix) the
      aggregate Outstanding Principal Balance of all Receivables the final maturity
      date of which has been extended by up to six months, more than six months to
      twelve months and more than twelve months, respectively, as of the end of the
      preceding Monthly Period;

     

    (xx) the
      aggregate amount of reductions of the Outstanding Principal Balance of the
      Receivables as a result of cancellations of service maintenance contracts and
      credit insurance during the related Monthly Period; and

     

    (xxi) the
      aggregate Outstanding Principal Balance of all Receivables any Obligor of which
      is an Opportunity Customer as of the end of the preceding Monthly
      Period.

     

    (b) Annual
      Noteholders’ Tax Statement.
      To the
      extent required by the Code, on or before January 31 of each calendar year,
      beginning with the calendar year 2003, the Trustee shall distribute to each
      Person who at any time during the preceding calendar year was a Noteholder,
      a
      statement prepared by the Trustee containing the information required to be
      contained in the regular monthly report to Noteholders, as set forth in
      subclauses (i), (ii) and (iii) above, aggregated for such calendar year or
      the
      applicable portion thereof during which such Person was a Noteholder, together
      with such other customary information (consistent with the treatment of the
      Notes as debt). Such obligations of the Trustee shall be deemed to have been
      satisfied to the extent that substantially comparable information shall be
      provided by the Trustee pursuant to any requirements of the Code as from time
      to
      time in effect.

     

    SECTION
      9.   Series
      2006-A Pay Out Events.
      If any
      one of the following events (a “Series
      2006-A Pay Out Event”)
      shall
      occur with respect to the Notes:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a)  failure
      on the part of the Issuer (i) to pay any amount described in clauses (i)-(vi)
      of
      the definition of Required Amount or to make any payment or deposit required
      by
      the terms of this Series Supplement, the Note Purchase Agreement or any other
      Transaction Document, on or before the date two (2) Business Days after the
      date
      on which such payment or deposit is required to be made herein or therein (or,
      in the case of a deposit to be made with respect to any Monthly Period, by
      the
      related Payment Date), or (ii) duly to observe or perform in any respect any
      other covenants or agreements of the Issuer set forth in this Series Supplement,
      the Note Purchase Agreement or any other Transaction Document which failure,
      solely in the case of this clause
      (ii),
      continues unremedied for a period of thirty (30) Business Days after the Issuer
      has knowledge thereof, or after the date on which written notice of such
      failure, requiring the same to be remedied, shall have been given to the Issuer
      by the Servicer or any Noteholder; provided,
      however,
      that a
      Series 2006-A Pay Out Event pursuant to this Section 9(a)
      shall
      not be deemed to have occurred hereunder if such Series 2006-A Pay Out Event
      is
      the result of a breach of a representation, warranty, statement or certificate
      with respect to any Receivable, and the Servicer has received a Deemed
      Collection in connection therewith, in an amount equal to the Outstanding
      Principal Balance of such Receivable and all accrued and unpaid interest thereon
      for application in accordance with Article
      5
      of the
      Base Indenture as modified by this Series Supplement;

     

    (b)  any
      representation or warranty made by the Issuer in this Series Supplement, the
      Note Purchase Agreement or any other Transaction Document or any information
      delivered by the Issuer pursuant thereto shall prove to have been incorrect
      in
      any respect when made or when delivered which, solely to the extent such
      incorrect representation or warranty may be cured without any actual or
      potential detriment to any Secured Party, continues unremedied for a period
      of
      thirty (30) Business Days after the date on which the Issuer has knowledge
      thereof or on which written notice thereof, requiring the same to be remedied,
      shall have been given to the Issuer by the Servicer or any Noteholder;
provided,
      however,
      that a
      Series 2006-A Pay Out Event pursuant to this Section 9(b)
      shall
      not be deemed to have occurred hereunder if such Series 2006-A Pay Out Event
      is
      the result of a breach of a representation, warranty, statement or certificate
      with respect to any Receivable, and the Servicer has received a Deemed
      Collection in connection therewith, in an amount equal to the Outstanding
      Principal Balance of such Receivable and all accrued and unpaid interest thereon
      for application in accordance with Article
      5
      of the
      Base Indenture as modified by this Series Supplement;

     

    (c)  the
      Issuer, any Seller or CAI shall become the subject of any Event of Bankruptcy
      or
      voluntarily suspend payment of its obligations; or the Issuer shall become
      unable for any reason (other than by reason of a determination by one or more
      Sellers not to sell receivables to the Issuer pursuant to the Purchase
      Agreement) to pledge Receivables to the Trustee in accordance with the
      provisions of the Indenture;

     

    (d)  the
      Issuer, any Seller or CAI shall become an “investment company” within the
      meaning of the Investment Company Act of 1940, as amended;

     

    (e)  any
      Servicer Default (other than a Servicer Default specified in clause (e), (h),
      (i) or (j) of Section
      2.04
      of the
      Servicing Agreement) shall occur, or a Servicer Default specified in clause
      (e),
      (h), (i) or (j) of Section
      2.04
      of the
      Servicing Agreement shall occur and not be cured within ten (10) days after
      the
      earlier of discovery by the Servicer or the date on which written notice of
      such
      Servicer Default, requiring the same to be remedied, shall have been given
      to
      the Servicer by the Issuer or any Noteholder;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (f)  on
      the
      close of the Issuer’s business on the last day of any Monthly Period, the Net
      Portfolio Yield averaged over any three consecutive Monthly Periods is less
      than
      2.00%;

     

    (g)  an
      Event
      of Default;

     

    (h)  on
      any
      date of determination, the Gross Loss Rate shall be equal to or exceed 10.0%
      on
      a rolling three-month average basis;

     

    (i)  a
“Pay
      Out Event” occurs under any other Series (unless such Pay Out Event is solely as
      a result of an “Enhancement Provider Default” under such other Series or the
      downgrade of the rating of the “Enhancement Provider” of such other Series)
      resulting in the commencement of a “Rapid Amortization Period” for such other
      Series;

     

    (j)  at
      any
      time CAI is the Servicer, any event of default (not cured or waived within
      ten
      (10) Business Days) under (A) the Retailer Credit Agreement, (B) any inventory
      financing agreement between any lender and the Servicer, the Parent or any
      Seller, or (C) any indenture, credit or loan agreement or other agreement or
      instrument of any kind pursuant to which Indebtedness of the Servicer, the
      Parent or any Seller in an aggregate principal amount in excess of $1,000,000
      is
      outstanding or by which the same is evidenced, shall have occurred and be
      continuing;

     

    (k)  the
      Trustee shall, for any reason, fail or cease to have a valid and perfected
      first
      priority security interest in the Receivables and Related Security, and any
      other Issuer assets in the Trust Estate free and clear of any Adverse Claims
      (and, solely with respect to the Collections and proceeds with respect to the
      foregoing or other proceeds of any item of collateral described above, to the
      extent provided in Section 9-315 of the UCC);

     

    (l)  the
      Coverage Test is not satisfied or the Required Reserve Amount cannot increase
      as
      a result of the limitation in the second proviso in the definition thereof
      and
      in either case such condition continues unremedied for three (3) Business
      Days;

     

    (m)  the
      imposition of (i) non de-minimis tax liens against the Issuer, (ii) tax
      liens against any Seller unless such lien would not have a Material Adverse
      Effect and has been released within thirty (30) days of the earlier of (a)
      the
      date such Seller has knowledge of the imposition of such tax lien or (b) the
      date on which such Seller receives notice of the imposition of such tax lien,
      and (iii) ERISA liens against the Issuer or any Seller;

     

    (n)  there
      shall have occurred a Change in Control;

     

    (o)  the
      Servicer shall become unable for any reason to transfer the Collections on,
      or
      other proceeds of, Receivables to the Issuer in accordance with the provisions
      of this Series Supplement;

     

    (p)  the
      occurrence and continuation of a Purchase Termination Event under and as defined
      in the Purchase Agreement; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (q)  the
      failure of the Issuer to pay when due any amount due with respect to any
      Indebtedness to which it is a party (other than Issuer
      Obligations);

     

    then,
      (i)
      in the case of any event described in subparagraph (a), (b), (e), (h), (j),
      (k),
      (l), (m), (n), (p) or (q) after the applicable grace period, if any, set forth
      in such subparagraphs, Holders of Notes (voting together without regard to
      class) representing at least 51% of the aggregate Note Principal of all Notes
      by
      written notice to the Trustee, the Issuer and the Servicer may declare that
      the
      Rapid Pay Out Commencement Date has occurred as of the date of such notice
      and
      (ii) in the case of an event described in subparagraphs (c), (d), (f), (g),
      (i)
      or (o) or, three (3) Business Days following the occurrence and continuation
      of
      an event described in subparagraph (l), the Rapid Pay Out Commencement Date
      shall occur without any notice or other action on the part of any party hereto
      immediately upon the occurrence of such event.

     

    Notwithstanding
      anything to the contrary in the Base Indenture, no Series 2006-A Pay Out Event
      may be amended, waived or deleted, and no new Series 2006-A Series Pay Out
      Event may be added, without the prior consent of the Required Persons for
      Series 2006-A.

     

    SECTION
      10.   Article
      7 of the Base Indenture.
      Article
      7
      of the
      Base Indenture shall read in its entirety as follows:

     

    ARTICLE
      7

     

    REPRESENTATIONS
      AND WARRANTIES OF THE ISSUER

     

    SECTION
      7.1. Representations
      and Warranties of the Issuer.
      The
      Issuer hereby represents and warrants to the Trustee and each of the Secured
      Parties that:

     

    (a) Organization
      and Good Standing, etc.
      The
      Issuer has been duly organized and is validly existing and in good standing
      under the laws of the state of Texas, with power and authority to own its
      properties and to conduct its respective businesses as such properties are
      presently owned and such business is presently conducted. The Issuer is not
      organized under the laws of any other jurisdiction or governmental authority.
      The Issuer is duly licensed or qualified to do business as a foreign entity
      in
      good standing in the jurisdiction where its principal place of business and
      chief executive office is located and in each other jurisdiction in which the
      failure to be so licensed or qualified would be reasonably likely to have a
      Material Adverse Effect.

     

    (b) Power
      and Authority; Due Authorization.
      The
      Issuer has (a) all necessary power, authority and legal right to
      (i) execute, deliver and perform its obligations under this Indenture and
      each of the other Transaction Documents to which it is a party and (b) duly
      authorized, by all necessary action, the execution, delivery and performance
      of
      this Indenture and the other Transaction Documents to which it is a party and
      the borrowing, and the granting of security therefor, on the terms and
      conditions provided herein.

     

    (c) No
      Violation.
      The
      consummation of the transactions contemplated by this Indenture and the other
      Transaction Documents and the fulfillment of the terms hereof will not
      (a) conflict with, result in any breach of any of the terms and provisions
      of, or constitute (with or without notice or lapse of time or both) a default
      under, (i) the organizational documents of the Issuer or (ii) any
      indenture, loan agreement, pooling and servicing agreement, receivables purchase
      agreement, mortgage, deed of trust, or other agreement or instrument to which
      the Issuer is a party or by which it or its properties is bound, (b) result
      in or require the creation or imposition of any Adverse Claim upon its
      properties pursuant to the terms of any such indenture, loan agreement, pooling
      and servicing agreement, receivables purchase agreement, mortgage, deed of
      trust, or other agreement or instrument, other than pursuant to the terms of
      the
      Transaction Documents, or (c) violate any law or any order, rule, or
      regulation applicable to the Issuer or of any court or of any federal, state
      or
      foreign regulatory body, administrative agency, or other governmental
      instrumentality having jurisdiction over the Issuer or any of its respective
      properties.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d) Validity
      and Binding Nature.
      This
      Indenture is, and the other Transaction Documents to which it is a party when
      duly executed and delivered by the Issuer and the other parties thereto will
      be,
      the legal, valid and binding obligation of the Issuer enforceable in accordance
      with their respective terms, except as enforceability may be limited by
      applicable bankruptcy, insolvency, reorganization, moratorium or similar law
      affecting creditors’ rights generally and by general principles of
      equity.

     

    (e) Government
      Approvals.
      No
      authorization or approval or other action by, and no notice to or filing with,
      any governmental authority or regulatory body required for the due execution,
      delivery or performance by the Issuer of any Transaction Document to which
      it is
      a party remains unobtained or unfiled, except for the filing of the UCC
      financing statements referred to in Section 15.4.

     

    (f) [Reserved].

     

    (g) Margin
      Regulations.
      The
      Issuer is not engaged in the business of extending credit for the purpose of
      purchasing or carrying margin stock, and no proceeds with respect to the sale
      of
      the Notes, directly or indirectly, will be used for a purpose that violates,
      or
      would be inconsistent with, Regulations T, U and X promulgated by the Federal
      Reserve Board from time to time.

     

    (h) Perfection.
      (i) Immediately
      preceding the Closing Date and the date of each recomputation of the Investor
      Interest, the Issuer shall be the owner of all of the Receivables and Related
      Security and Collections and proceeds with respect thereto, free and clear
      of
      all Adverse Claims. On or prior to the Initial Closing Date and the date of
      each
      recomputation of the Investor Interest, all financing statements and other
      documents required to be recorded or filed in order to perfect and protect
      the
      assets of the Trust Estate against all creditors (other than Secured Parties)
      of, and purchasers (other than Secured Parties) from, the Issuer, each Seller
      and the Initial Seller will have been duly filed in each filing office necessary
      for such purpose, and all filing fees and taxes, if any, payable in connection
      with such filings shall have been paid in full;

     

    (ii) the
      Indenture constitutes a valid grant of a security interest to the Trustee for
      the benefit of the Purchasers and the other Secured Parties in all right, title
      and interest of the Issuer in the Receivables, the Related Security and
      Collections and proceeds with respect thereto and all other assets of the Trust
      Estate, now existing or hereafter created or acquired. Accordingly, to the
      extent the UCC applies with respect to the perfection of such security interest,
      upon the filing of any financing statements described in Article 8
      of the
      Indenture, and, solely with respect to the Related Security, to the extent
      required for perfection under the relevant UCC, the delivery of possession
      of
      all instruments, if any, included in such Related Security to the Servicer),
      the
      Trustee shall have a first priority perfected security interest in such property
      and the proceeds thereof (to the extent provided in Section 9-315), subject
      to
      Permitted Encumbrances and, to the extent the UCC does not apply to the
      perfection of such security interest, all notices, filings and other actions
      required by all applicable law have been taken to perfect and protect such
      security interest or lien against and prior to all Adverse Claims with respect
      to the relevant Receivables, Related Security and Collections and proceeds
      with
      respect thereto and all other assets of the Trust Estate. Except as otherwise
      specifically provided in the Transaction Documents, neither the Issuer nor
      any
      Person claiming through or under the Issuer has any claim to or interest in
      the
      Collection Account; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii) immediately
      prior to, and after giving effect to, the initial purchase of the Notes, the
      Issuer will be Solvent.

     

    (i) Offices.
      The
      principal place of business and chief executive office of the Issuer is located
      at the address referred to in Section 15.4
      (or at
      such other locations, notified to the Trustee in jurisdictions where all action
      required thereby has been taken and completed).

     

    (j) Tax
      Status.
      The
      Issuer has filed all tax returns (Federal, State and local) required to be
      filed
      by it and has paid or made adequate provision for the payment of all taxes,
      assessments and other governmental charges then due and payable (including
      for
      such purposes, the setting aside of appropriate reserves for taxes, assessments
      and other governmental charges being contested in good faith).

     

    (k) Use
      of
      Proceeds.
      No
      proceeds of any Notes will be used by the Issuer to acquire any security in
      any
      transaction which is subject to Section 13 or 14 of the Securities Exchange
      Act
      of 1934, as amended.

     

    (l) Compliance
      with Applicable Laws; Licenses, etc.

     

    (i) The
      Issuer is in compliance with the requirements of all applicable laws, rules,
      regulations, and orders of all governmental authorities, a breach of any of
      which, individually or in the aggregate, would be reasonably likely to have
      a
      Material Adverse Effect.

     

    (ii) The
      Issuer has not failed to obtain any licenses, permits, franchises or other
      governmental authorizations necessary to the ownership of its properties or
      to
      the conduct of its business, which violation or failure to obtain would be
      reasonably likely to have a Material Adverse Effect.

     

    (m) No
      Proceedings.
      Except
      as described in Schedule
      1,

     

    (i) there
      is
      no order, judgment, decree, injunction, stipulation or consent order of or
      with
      any court or other government authority to which the Issuer is subject, and
      there is no action, suit, arbitration, regulatory proceeding or investigation
      pending, or, to the knowledge of the Issuer, threatened, before or by any court,
      regulatory body, administrative agency or other tribunal or governmental
      instrumentality, against the Issuer that, individually or in the aggregate,
      is
      reasonably likely to have a Material Adverse Effect; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii) there
      is
      no action, suit, proceeding, arbitration, regulatory or governmental
      investigation, pending or, to the knowledge of the Issuer, threatened, before
      or
      by any court, regulatory body, administrative agency, or other tribunal or
      governmental instrumentality (A) asserting the invalidity of this
      Indenture, the Notes or any other Transaction Document, (B) seeking to
      prevent the issuance of the Notes pursuant hereto or the consummation of any
      of
      the other transactions contemplated by this Indenture or any other Transaction
      Document or (C) seeking to adversely affect the federal income tax
      attributes of the Issuer.

     

    (n) Investment
      Company Act, Etc.
      The
      Issuer is not an “investment company” within the meaning of the Investment
      Company Act of 1940, as amended, or a “holding company”, or a “subsidiary
      company”, of a “holding company”, or an “affiliate” of a “holding company”, or
      of a “subsidiary company” of a “holding company”, within the meaning of the
      Public Utility Holding Company Act of 1935, as amended.

     

    (o) Eligible
      Receivables.
      Each
      Receivable included as an Eligible Receivable in any Monthly Servicer Report
      shall be an Eligible Receivable as of the date so included. Each Receivable,
      including Subsequently Purchased Receivables, purchased by the Issuer on any
      Purchase Date shall be an Eligible Receivable as of such Purchase Date unless
      otherwise specified to the Trustee in writing prior to such Purchase
      Date.

     

    (p) Receivables
      Schedule.
      The
      most recently delivered Receivables Schedule reflects, in all material respects,
      a true and correct schedule of the Receivables included in the Trust Estate
      as
      of the date of delivery.

     

    (q) ERISA.
      (i)
      Each of the Issuer and its ERISA Affiliates is in compliance in all material
      respects with ERISA unless any failure to so comply could not reasonably be
      expected to have a Material Adverse Effect and (ii) no Lien exists in favor
      of
      the Pension Benefit Guaranty Corporation on any of the Receivables. No ERISA
      Event has occurred with respect to Title IV Plans of the Issuer. No ERISA Event
      has occurred with respect to Title IV plans of the Issuer’s ERISA
      Affiliates that have an aggregate Unfunded Pension Liability equal to or greater
      than $1,000,000.

     

    (r) Accuracy
      of Information.
      All
      information heretofore furnished by, or on behalf of, the Issuer to the Trustee
      or any of the Noteholders in connection with any Transaction Document, or any
      transaction contemplated thereby, is true and accurate in every material respect
      (without omission of any information necessary to prevent such information
      from
      being materially misleading).

     

    (s) No
      Material Adverse Change.
      Since
      January 31, 2006, other than as disclosed in the Offering Memorandum related
      to
      the Notes, there has been no material adverse change in the collectibility
      of
      the Receivables or the Issuer’s (i) financial condition, business,
      operations or prospects or (ii) ability to perform its obligations under
      any Transaction Document.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (t) Trade
      Names and Subsidiaries.
      Set
      forth on Schedule 2 hereto is a complete list of trade names of the Issuer
      for
      the six year period preceding the Closing Date. The Issuer has no Subsidiaries
      and does not own or hold, directly or indirectly, any equity interest in any
      Person.

     

    (u) Notes.
      The
      Notes have been duly and validly authorized, and, when executed and
      authenticated in accordance with the terms of the Indenture, and delivered
      to
      and paid for in accordance with each of the Note Purchase Agreements, will
      be
      duly and validly issued and outstanding and will be entitled to the benefits
      of
      the Indenture.

     

    (v) Sales
      by Sellers or the Initial Seller.
      Each
      sale of Receivables by any Seller or the Initial Seller to the Issuer shall
      have
      been effected under, and in accordance with the terms of, the Purchase
      Agreement, including the payment by the Issuer to such Seller or the Initial
      Seller of an amount equal to the purchase price therefor as described in the
      Purchase Agreement, and each such sale shall have been made for “reasonably
      equivalent value” (as such term is used under Section 548 of the Federal
      Bankruptcy Code) and not for or on account of “antecedent debt” (as such term is
      used under Section 547 of the Federal Bankruptcy Code) owed by the Issuer
      to such Seller or the Initial Seller.

     

    SECTION
      7.2. Reaffirmation
      of Representations and Warranties by the Issuer.
      On the
      Closing Date and on each Business Day, the Issuer shall be deemed to have
      certified that all representations and warranties described in Section
      7.1
      hereof
      are true and correct on and as of such day as though made on and as of such
      day
      (except to the extent they relate to an earlier date or later time, and then
      as
      of such earlier date or later time).

     

    SECTION
      11.  
      [Reserved].

     

    SECTION
      12.  
      [Reserved].

     

    SECTION
      13.   Counterparts.
      This
      Series Supplement may be executed in any number of counterparts, and by
      different parties in separate counterparts, each of which so executed shall
      be
      deemed to be an original, but all of such counterparts shall together constitute
      but one and the same instrument.

     

    SECTION
      14.   Governing
      Law.
      THIS
      SERIES SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
      OF
      NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
      OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
      IN
      ACCORDANCE WITH SUCH LAWS. EACH OF THE PARTIES TO THIS SERIES SUPPLEMENT AND
      EACH NOTEHOLDER HEREBY AGREES TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED
      STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE
      COURT HAVING JURISDICTION TO REVIEW THE JUDGMENTS THEREOF. EACH OF THE PARTIES
      HERETO AND EACH NOTEHOLDER HEREBY WAIVES ANY OBJECTION BASED ON FORUM
      NON CONVENIENS
      AND ANY
      OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE
      AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
      RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      15.   Waiver
      of Trial by Jury.
      To the
      extent permitted by applicable law, each of the parties hereto and each of
      the
      Noteholders irrevocably waives all right of trial by jury in any action,
      proceeding or counterclaim arising out of or in connection with this Series
      Supplement or the Transaction Documents or any matter arising hereunder or
      thereunder.

     

    SECTION
      16.   No Petition.
      The
      Trustee, by entering into this Series Supplement and each Noteholder, by
      accepting a Note hereby covenant and agree that they will not prior to the
      date
      which is one year and one day after payment in full of the last maturing Note
      of
      any Series and termination of the Indenture institute against the Issuer, or
      join in any institution against the Issuer of, any bankruptcy proceedings under
      any United States federal or state bankruptcy or similar law in connection
      with
      any obligations relating to the Noteholders, the Servicing Agreement, the Base
      Indenture or this Series Supplement.

     

    SECTION
      17.   Rights
      of the Trustee.
      The
      rights, privileges and immunities afforded to the Trustee under the Base
      Indenture shall apply hereunder as if fully set forth herein.

     

    [signature
      page follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 
	 	CONN
              FUNDING II,
              L.P., as Issuer
	 
 	 
 	 
 
	 	By:  	Conn
              Funding II GP, L.L.C.,
	 	its general partner
	 	 

    

    
      	 	 	 
	 
 	 
 	 
 
	 	By:  	/s/ David
              R.
              Atnip
	 	
              
Name:
              David R. Atnip
	 	Title:
              Treasurer

    

    
      	 	 	 
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
              not in
              its 
	 	individual capacity, but solely as
              Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ Marianna
              C. Stershic
	 	
              
Name:
              Marianna C. Stershic
	 	Title:
              Vice President

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-1

     

    FORM
      OF

     

    RESTRICTED
      GLOBAL NOTE

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THE
      INDENTURE (AS DEFINED BELOW) CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER
      AND
      RESALE OF THIS NOTE. EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS
      DEEMED TO HAVE ACCEPTED THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON
      TRANSFERABILITY. IN ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE
      HEREOF, IS DEEMED TO HAVE MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH
      IN
      THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

     

    EACH
      PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY
      BE
      RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES
      ACT
      PROVIDED BY RULE 144A THEREUNDER.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                No.
                  R144A-1

              	
                $90,000,000

              
	 	
                CUSIP
                  No. 207415 AD 2

              
	 	
                ISIN
                  US207415AD21

              

      

    

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS A NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS A NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
      FACE HEREOF.

     

    CONN
      FUNDING II, L.P.

     

    5.507%
      ASSET BACKED FIXED RATE NOTES, CLASS A, SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal sum set forth on
      Schedule A attached hereto (which sum shall not exceed $90,000,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Note shall be due and payable on
      April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class A Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Class A Note is paid or made available for payment, on the average daily
      outstanding principal balance of this Class A Note during the related Interest
      Period (as defined in the Series 2006-A Supplement). Interest will be computed
      on the basis set forth in the Indenture. Such principal of and interest on
      this
      Class A Note shall be paid in the manner specified on the reverse hereof. The
      aggregate principal sum of the Regulation S Global Notes and the Restricted
      Global Note shall not exceed $90,000,000.

     

    The
      Class
      A Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class A Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class A Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class A Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class A Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually
      or in facsimile, by its Authorized Officer as of the date set forth
      below.

     

    
      	 	 	 
	 	CONN
              FUNDING II,
              L.P.
	 
 	 
 	 
 
	 	By:  	Conn
              Funding II GP, L.L.C.,
	 	its general
              partner

    

    
      	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Authorized
              Officer
	 	 

    

     

    
      	Attested
              to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
              
Authorized
              Officer	 	 	
            
	 	 	 	 

    

    
 

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class A Notes referred to in the within mentioned Series 2006-A
      Supplement.

     

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely as
              Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              

              Authorized
                Officer

            
	 	 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    [REVERSE
      OF NOTE]

     

    This
      Class A Note is one of a duly authorized issue of Class A Notes of the Issuer,
      designated as its 5.507% Asset Backed Fixed Rate Notes, Class A, Series 2006-A
      (herein called the “Class
      A Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the
      Series 2006-A Supplement and supplements and amendments relating to other
      series of notes, as supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee,”
which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Class A Noteholders.
      The Class A Notes are subject to all terms of the Indenture. All terms used
      in
      this Class A Note that are defined in the Indenture shall have the meanings
      assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class A Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid , in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class A Notes shall be made pro rata
      to the
      Class A Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class A Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class A Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class A Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class A Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class A Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class A Noteholders and of any
      Class
      A Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      A
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class A Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial
      interests represented by this Restricted Global Note, details of such
      redemption, purchase, exchange or cancellation shall be entered by the Paying
      Agent in Schedule
      A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Restricted Global Note
      and the beneficial interests represented by the Restricted Global Note shall
      be
      reduced or increased, as appropriate, by the principal amount so redeemed,
      purchased, exchanged or cancelled.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      Class A Noteholder, by acceptance of a Class A Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class A Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United States federal or state bankruptcy or
      similar law in connection with any obligations relating to the Notes, the
      Indenture or the Transaction Documents.

     

    Each
      Class A Noteholder, by acceptance of a Class A Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Noteholder will treat
      such
      Note as indebtedness for all Federal, state and local income and franchise
      tax
      purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class A Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class A Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class A Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class A Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    The
      term
“Issuer”
as
      used
      in this Class A Note includes any successor to the Issuer under the
      Indenture.

     

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Noteholders under
      the
      Indenture.

     

    The
      Class
      A Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class A Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class A Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class
      A
      Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class A Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class A Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

     

    
      	Dated: _________________________	 	
              _______________ 1 

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 

    

     

     

    
      

      
        1 NOTE:
          The
          signature to this assignment must correspond with the name of the registered
          owner as it appears on the face of the within Note in every particular,
          without
          alteration, enlargement or any change whatsoever.

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

     

    BETWEEN
      THE TEMPORARY REGULATION S GLOBAL NOTE

     

    OR
      THE PERMANENT REGULATION S GLOBAL NOTE AND

     

    THIS
      RESTRICTED GLOBAL NOTE, OR REDEMPTIONS

     

    OR
      PURCHASES AND CANCELLATIONS

     

    The
      following increases or decreases in principal amount of this Restricted Global
      Note or redemptions, purchases or cancellation of this Restricted Global Note
      have been made:

     

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Increase
                or decrease in principal amount of this Restricted Global Note due
                to
                exchanges between the Temporary Regulation S Global Note or the Permanent
                Regulation S Global Note and this Restricted Global Note

            	 	
              Remaining
                principal amount of this Restricted Global Note following such exchange,
                or redemption or purchase or cancellation

            	 	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2

     

    FORM
      OF

    TEMPORARY
      REGULATION S GLOBAL NOTE

     

    THIS
      GLOBAL NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER
      THIS TEMPORARY REGULATION S GLOBAL NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN
      MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE
      REFERRED TO BELOW.

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    THE
      INDENTURE CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER AND RESALE OF THIS
      NOTE.
      EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO HAVE ACCEPTED
      THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON TRANSFERABILITY. IN
      ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO
      HAVE
      MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              No.
                TREGS-1

            	
              $90,000,000

            
	 	
              CUSIP
                No. U20772 AD 8

            
	 	
              ISIN
                USU20772AD85

            

    

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS A NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS A NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
      FACE HEREOF.

     

    CONN
      FUNDING II, L.P.

     

    5.507%
      ASSET BACKED FIXED RATE NOTES, CLASS A, SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal sum set forth on
      Schedule A attached hereto (which sum shall not exceed $90,000,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Class A Note shall be due and payable
      on April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class A Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Class A Note is paid or made available for payment, on the average daily
      outstanding principal balance of this Class A Note during the related Interest
      Period (as defined in the Series 2006-A Supplement). Interest will be computed
      on the basis set forth in the Indenture. Such principal of and interest on
      this
      Class A Note shall be paid in the manner specified on the reverse hereof. The
      aggregate principal sum of the Regulation S Global Notes and the Restricted
      Global Note shall not exceed $90,000,000.

     

    The
      Class
      A Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class A Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class A Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class A Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class A Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        	 	 	 
	 	CONN
                FUNDING II,
                L.P.
	 
 	 
 	 
 
	 	By:  	Conn
                Funding II GP, L.L.C.,
	 	its general
                partner

      

      
        	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Authorized
                Officer
	 	 

      

       

      
        	Attested
                to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
                
Authorized
                Officer	 	 	
              
	 	 	 	 

      

      
 

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class A Notes referred to in the within mentioned Series 2006-A
        Supplement.

       

      
        	 	 	 
	 	WELLS
                FARGO BANK,
                NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely as
                Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                

                Authorized
                  Officer

              
	 	 

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    [REVERSE
      OF NOTE]

     

    This
      Class A Note is one of a duly authorized issue of Class A Notes of the Issuer,
      designated as its 5.507% Asset Backed Fixed Rate Notes, Class A, Series 2006-A
      (herein called the “Class
      A Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the
      Series 2006-A Supplement and supplements and amendments relating to other
      series of notes, as supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee”,
      which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Holders of the Class
      A
      Notes. The Class A Notes are subject to all terms of the Indenture. All terms
      used in this Class A Note that are defined in the Indenture shall have the
      meanings assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class A Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid, in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class A Notes shall be made pro rata
      to the
      Class A Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class A Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class A Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class A Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class A Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class A Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class A Noteholders and of any
      Class
      A Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      A
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class A Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    Any
      interest in a Class A Note evidenced by this Temporary Regulation S Global
      Note
      is exchangeable for an interest in a Permanent Regulation S Global Note upon
      the
      later of (i) the Exchange Date and (ii) the furnishing of a certificate, the
      form of which is attached as Exhibit
      C-2
      to the
      Series 2006-A Supplement. Interests in this Temporary Regulation S Global Note
      are exchangeable for interests in a Permanent Regulation S Global Note or a
      Restricted Global Note only upon presentation of the applicable certificate
      required by Section
      6
      of the
      Series 2006-A Supplement to the Base Indenture. Upon exchange of all interests
      in this Temporary Regulation S Global Note for interests in the Permanent
      Regulation S Global Note and/or the Restricted Global Note, the Trustee shall
      cancel this Temporary Regulation S Global Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Until
      the
      provision of the certifications required by Section
      6
      of the
      Series 2006-A Supplement, beneficial interests in a Regulation S Global Note
      may
      only be held through Euroclear or Clearstream or another agent member of
      Euroclear or Clearstream acting for and on behalf of them.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial
      interests represented by this Temporary Regulation S Global Note, details of
      such redemption, purchase, exchange or cancellation shall be entered by the
      Paying Agent in Schedule
      A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed on by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Temporary Regulation
      S
      Global Note and the beneficial interests represented by the Permanent Regulation
      S Global Note shall be reduced or increased, as appropriate, by the principal
      amount so redeemed, purchased, exchanged or cancelled.

     

    Each
      Class A Noteholder, by acceptance of a Class A Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class A Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United Stated Federal or state bankruptcy or
      similar law in connection with any obligations relating to the Class A Notes,
      the Indenture or the Transaction Documents.

     

    Each
      Class A Noteholder, by acceptance of a Class A Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class A Noteholder will
      treat such Class A Note as indebtedness for all federal, state and local income
      and franchise tax purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class A Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class A Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class A Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class A Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    The
      term
“Issuer”
as
      used
      in this Class A Note includes any successor to the Issuer under the
      Indenture.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Noteholders under
      the
      Indenture.

     

    The
      Class
      A Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class A Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class A Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class A
      Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class A Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class A Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

    
      	Dated:	 	
              _______________ 2 

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 

    

     

    
      

      
        2 NOTE:
          The
          signature to this assignment must correspond with the name of the registered
          owner as it appears on the face of the within Class A Note in every particular,
          without alteration, enlargement or any change
          whatsoever.

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

     

    FOR
      NOTES REPRESENTED BY THE TEMPORARY

     

    REGULATION
      S GLOBAL NOTE, THE PERMANENT REGULATION S GLOBAL 

     

    NOTE
      OR THE RESTRICTED GLOBAL NOTE, OR REDEMPTIONS OR

     

    PURCHASES
      AND CANCELLATIONS

     

    The
      following exchanges of a part of this Temporary Regulation S Global Note for
      the
      Permanent Regulation S Global Note or the Restricted Global Note or an exchange
      of a part of the Restricted Global Note for a part of this Temporary Regulation
      S Global Note, in whole or in part, or redemptions, purchases or cancellation
      of
      this Temporary Regulation S Global Note have been made:

     

    

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Part
                of principal amount of this Temporary Regulation S Global Note exchanged
                for Notes represented by the Permanent Regulation S Global Note or
                the
                Restricted Global Note, or redeemed or purchased or
                cancelled

            	 	
              Part
                of principal amount of the Regulation S Global Note exchanged for
                Notes
                represented by this Temporary Regulation S Global Note

            	 	
              Remaining
                principal amount of this Temporary Regulation S Global Note following
                such
                exchange, or redemption or purchase or cancellation

            	 	
              Amount
                of interest paid with delivery of the Permanent Regulation S Global
                Note

            	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            	
              _________

            
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              ____________

            	 	
              _____________

            	
              _________

            
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              ____________

            	 	
              _____________

            	
              _________

            
	 	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-3

     

    FORM
      OF

     

    PERMANENT
      REGULATION S GLOBAL NOTE

     

    THIS
      GLOBAL NOTE IS A PERMANENT GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER
      THIS PERMANENT GLOBAL NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
      OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED
      TO
      BELOW.

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    THE
      INDENTURE CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER AND RESALE OF THIS
      NOTE.
      EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO HAVE ACCEPTED
      THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON TRANSFERABILITY. IN
      ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO
      HAVE
      MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              No.
                REGS-1

            	
              $90,000,000

            
	 	
              CUSIP
                No. U20772 AD 8

            
	 	
              ISIN
                USU20772AD85

            

    

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS A NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS
      A NOTE
      AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
      HEREOF.

     

    CONN
      FUNDING II, L.P.

     

    5.507%
      ASSET BACKED FIXED RATE NOTES, CLASS A, SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal amount set forth
      on
      Schedule A attached hereto (which sum shall not exceed $90,000,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Class A Note shall be due and payable
      on April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class A Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Class A Note is paid or made available for payment, on the average daily
      outstanding principal balance of this Class A Note during the related Interest
      Period (as defined in the Series 2006-A Supplement). Interest will be computed
      on the basis set forth in the Indenture. Such principal of and interest on
      this
      Class A Note shall be paid in the manner specified on the reverse hereof. The
      aggregate principal sum of the Regulation S Global Notes and the Restricted
      Global Note shall not exceed $90,000,000.

     

    The
      Class
      A Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class A Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class A Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class A Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class A Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually
      or in facsimile, by its Authorized Officer as of the date set forth
      below.

    
       

      
         

        
          	 	 	 
	 	CONN
                  FUNDING II,
                  L.P.
	 
 	 
 	 
 
	 	By:  	Conn
                  Funding II GP, L.L.C.,
	 	its general
                  partner

        

        
          	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Authorized
                  Officer
	 	 

        

         

        
          	Attested
                  to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
                  
Authorized
                  Officer	 	 	
                
	 	 	 	 

        

        
 

        CERTIFICATE
          OF AUTHENTICATION

         

        This
          is
          one of the Class A Notes referred to in the within mentioned Series 2006-A
          Supplement.

         

        
          	 	 	 
	 	WELLS
                  FARGO BANK,
                  NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely
                  as
                  Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                  

                  Authorized
                    Officer

                
	 	 

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

           

        

      

    

    [REVERSE
      OF NOTE]

     

    This
      Class A Note is one of a duly authorized issue of Class A Notes of the Issuer,
      designated as its 5.507% Asset Backed Fixed Rate Notes, Class A, Series 2006-A
      (herein called the “Class
      A Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the Series
      2006-A Supplement and supplements relating to other series of notes, as
      supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee”,
      which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Class A Noteholders.
      The Class A Notes are subject to all terms of the Indenture. All terms used
      in
      this Class A Note that are defined in the Indenture shall have the meanings
      assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class A Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid, in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class A Notes shall be made pro rata
      to the
      Class A Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class A Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class A Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class A Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class A Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class A Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class A Noteholders and of any
      Class
      A Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      A
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class A Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial interest
      represented by this Permanent Regulation S Global Note, details of such
      redemption, purchase, exchange or cancellation shall be entered by the Paying
      Agent in Schedule A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Permanent Regulation
      S
      Global Note and the beneficial interests represented by this Permanent
      Regulation S Global Note shall be reduced or increased, as appropriate, by
      the principal amount so redeemed, purchased, exchanged or
      cancelled.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      Class A Noteholder, by acceptance of a Class A Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class A Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United Stated federal or state bankruptcy or
      similar law in connection with any obligations relating to the Class A Notes,
      the Indenture or the Transaction Documents.

     

    Each
      Class A Noteholder, by acceptance of a Class A Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class A Noteholder will
      treat such Class A Note as indebtedness for all federal, state and local income
      and franchise tax purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class A Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class A Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class A Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class A Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    The
      term
“Issuer”
as
      used
      in this Class A Note includes any successor to the Issuer under the
      Indenture.

     

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Noteholders under
      the
      Indenture.

     

    The
      Class
      A Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class A Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class A Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class
      A
      Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class A Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class A Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

    
      	Dated:	 	
              _______________ 3 

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 

    

     

    
      

      
        3 NOTE:
          The
          signature to this assignment must correspond with the name of the registered
          owner as it appears on the face of the within Class A Note in every particular,
          without alteration, enlargement or any change
          whatsoever.

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

     

    BETWEEN
      THIS PERMANENT REGULATION S

     

    GLOBAL
      NOTE AND THE TEMPORARY REGULATION S GLOBAL NOTE AND 

     

    THE
      RESTRICTED GLOBAL NOTE,

     

    OR
      REDEMPTIONS OR PURCHASES AND CANCELLATIONS

     

    The
      following increases or decreases in the principal amount of this Permanent
      Regulation S Global Note or redemptions, purchases or cancellation of this
      Permanent Regulation S Global Note have been made:

     

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Increases
                or decreases in principal amount of this Permanent Regulation S Global
                Note due to exchanges between the Temporary Regulation S Global Note
                or
                the Restricted Global Note and this Permanent Regulation S Global
                Note

            	 	
              Remaining
                principal amount of this Permanent Regulation S Global Note following
                such
                exchange, or redemption or purchase or cancellation

            	 	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	 	 	 	 	 	 	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-1

     

    FORM
      OF

    RESTRICTED
      GLOBAL NOTE

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    THE
      INDENTURE (AS DEFINED BELOW) CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER
      AND
      RESALE OF THIS NOTE. EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS
      DEEMED TO HAVE ACCEPTED THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON
      TRANSFERABILITY. IN ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE
      HEREOF, IS DEEMED TO HAVE MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH
      IN
      THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

     

    EACH
      PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY
      BE
      RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES
      ACT
      PROVIDED BY RULE 144A THEREUNDER.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              No.
                R144A-1

            	
              $43,333,000

            
	 	
              CUSIP
                No. 207415 AE 0

            
	 	
              ISIN
                US207415AE04

            

    

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS B NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS B NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
      FACE HEREOF.

     

    CONN
      FUNDING II, L.P.

     

    5.854%
      ASSET BACKED FIXED RATE NOTES, CLASS B, SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal sum set forth on
      Schedule A attached hereto (which sum shall not exceed $43,333,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Note shall be due and payable on
      April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class B Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Class B Note is paid or made available for payment, on the average daily
      outstanding principal balance of this Class B Note during the related Interest
      Period (as defined in the Series 2006-A Supplement). Interest will be computed
      on the basis set forth in the Indenture. Such principal of and interest on
      this
      Note shall be paid in the manner specified on the reverse hereof. The aggregate
      principal sum of the Regulation S Global Notes and the Restricted Global Note
      shall not exceed $43,333,000.

     

    The
      Class
      B Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class B Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class B Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class B Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class B Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually
      or in facsimile, by its Authorized Officer as of the date set forth
      below.

    
       

      
        	 	 	 
	 	CONN
                FUNDING II,
                L.P.
	 
 	 
 	 
 
	 	By:  	Conn
                Funding II GP, L.L.C.,
	 	its general
                partner

      

      
        	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Authorized
                Officer
	 	 

      

       

      
        	Attested
                to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
                
Authorized
                Officer	 	 	
              
	 	 	 	 

      

      
 

      CERTIFICATE
        OF AUTHENTICATION

       

      
        This
          is
          one of the Class
          B
          Notes referred to in the within mentioned Series 2006-A
          Supplement.

      

       

      
        	 	 	 
	 	WELLS
                FARGO BANK,
                NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely as
                Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                

                Authorized
                  Officer

              
	 	 

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

    

    [REVERSE
      OF NOTE]

     

    This
      Class B Note is one of a duly authorized issue of Class B Notes of the Issuer,
      designated as its 5.854% Asset Backed Fixed Rate Notes, Class B, Series 2006-A
      (herein called the “Class
      B Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the
      Series 2006-A Supplement and supplements and amendments relating to other
      series of notes, as supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee,”
which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Class B Noteholders.
      The Class B Notes are subject to all terms of the Indenture. All terms used
      in
      this Class B Note that are defined in the Indenture shall have the meanings
      assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class B Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid, in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class B Notes shall be made pro rata
      to the
      Class B Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class B Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class B Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class B Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class B Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class B Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class B Noteholders and of any
      Class
      B Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      B
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class B Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial
      interests represented by this Restricted Global Note, details of such
      redemption, purchase, exchange or cancellation shall be entered by the Paying
      Agent in Schedule
      A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Restricted Global Note
      and the beneficial interests represented by the Restricted Global Note shall
      be
      reduced or increased, as appropriate, by the principal amount so redeemed,
      purchased, exchanged or cancelled.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      Class B Noteholder, by acceptance of a Class B Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class B Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United States federal or state bankruptcy or
      similar law in connection with any obligations relating to the Notes, the
      Indenture or the Transaction Documents.

     

    Each
      Class B Noteholder, by acceptance of a Class B Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Noteholder will treat
      such
      Note as indebtedness for all Federal, state and local income and franchise
      tax
      purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class B Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class B Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class B Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class B Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    The
      term
“Issuer”
as
      used
      in this Class B Note includes any successor to the Issuer under the
      Indenture.

     

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Noteholders under
      the
      Indenture.

     

    The
      Class
      B Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class B Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class B Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class
      B
      Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class B Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class B Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

    
      	Dated: 	 	
              _______________ 4  

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 

    

    
       

      

        

        
          4 NOTE:
            The
            signature to this assignment must correspond with the name of the registered
            owner as it appears on the face of the within Class A Note in every particular,
            without alteration, enlargement or any change whatsoever.

           

        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

     

    BETWEEN
      THE TEMPORARY REGULATION S GLOBAL NOTE

     

    OR
      THE PERMANENT REGULATION S GLOBAL NOTE AND

     

    THIS
      RESTRICTED GLOBAL NOTE, OR REDEMPTIONS

     

    OR
      PURCHASES AND CANCELLATIONS

     

    The
      following increases or decreases in principal amount of this Restricted Global
      Note or redemptions, purchases or cancellation of this Restricted Global Note
      have been made:

     

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Increase
                or decrease in principal amount of this Restricted Global Note due
                to
                exchanges between the Temporary Regulation S Global Note or the Permanent
                Regulation S Global Note and this Restricted Global Note

            	 	
              Remaining
                principal amount of this Restricted Global Note following such exchange,
                or redemption or purchase or cancellation

            	 	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	 	 	 	 	 	 	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-2

     

    FORM
      OF

    TEMPORARY
      REGULATION S GLOBAL NOTE

     

    THIS
      GLOBAL NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER
      THIS TEMPORARY REGULATION S GLOBAL NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN
      MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE
      REFERRED TO BELOW.

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    THE
      INDENTURE CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER AND RESALE OF THIS
      NOTE.
      EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO HAVE ACCEPTED
      THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON TRANSFERABILITY. IN
      ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO
      HAVE
      MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              No.
                TREGS

            	
              $43,333,000

            
	 	
              CUSIP
                No. U20772 AE 6

            
	 	
              ISIN
                USU20772AE68

            

    

     

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS B NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS B NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
      FACE HEREOF.

     

    CONN
      FUNDING II, L.P.

     

    5.854%
      ASSET BACKED FIXED RATE NOTES, CLASS B SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal sum set forth on
      Schedule A attached hereto (which sum shall not exceed $43,333,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Class B Note shall be due and payable
      on April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class B Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Class B Note is paid or made available for payment, on the average daily
      outstanding principal balance of this Class B Note during the related Interest
      Period (as defined in the Series 2006-A Supplement). Interest will be computed
      on the basis set forth in the Indenture. Such principal of and interest on
      this
      Class B Note shall be paid in the manner specified on the reverse hereof. The
      aggregate principal sum of the Regulation S Global Notes and the Restricted
      Global Note shall not exceed $43,333,000.

     

    The
      Class
      B Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class B Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class B Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class B Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class B Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually
      or in facsimile, by its Authorized Officer as of the date set forth
      below.

    
       

      
        	 	 	 
	 	CONN
                FUNDING II,
                L.P.
	 
 	 
 	 
 
	 	By:  	Conn
                Funding II GP, L.L.C.,
	 	its general
                partner

      

      
        	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Authorized
                Officer
	 	 

      

       

      
        	Attested
                to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
                
Authorized
                Officer	 	 	
              
	 	 	 	 

      

      
 

      CERTIFICATE
        OF AUTHENTICATION

       

      
        This
          is
          one of the Class
          B
          Notes referred to in the within mentioned Series 2006-A
          Supplement.

      

       

      
        	 	 	 
	 	WELLS
                FARGO BANK,
                NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely as
                Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                

                Authorized
                  Officer

              
	 	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    [REVERSE
      OF NOTE]

     

    This
      Class B Note is one of a duly authorized issue of Class B Notes of the Issuer,
      designated as its 5.854% Asset Backed Fixed Rate Notes, Class B, Series 2006-A
      (herein called the “Class
      B Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the
      Series 2006-A Supplement and supplements and amendments relating to other
      series of notes, as supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee”,
      which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Holders of the Class
      B
      Notes. The Class B Notes are subject to all terms of the Indenture. All terms
      used in this Class B Note that are defined in the Indenture shall have the
      meanings assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class B Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid, in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class B Notes shall be made pro rata
      to the
      Class B Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class B Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class B Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class B Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class B Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class B Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class B Noteholders and of any
      Class
      B Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      B
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class B Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    Any
      interest in a Class B Note evidenced by this Temporary Regulation S Global
      Note
      is exchangeable for an interest in a Permanent Regulation S Global Note upon
      the
      later of (i) the Exchange Date and (ii) the furnishing of a certificate, the
      form of which is attached as Exhibit
      C-2
      to the
      Series 2006-A Supplement. Interests in this Temporary Regulation S Global Note
      are exchangeable for interests in a Permanent Regulation S Global Note or a
      Restricted Global Note only upon presentation of the applicable certificate
      required by Section
      6
      of the
      Series 2006-A Supplement to the Base Indenture. Upon exchange of all interests
      in this Temporary Regulation S Global Note for interests in the Permanent
      Regulation S Global Note and/or the Restricted Global Note, the Trustee shall
      cancel this Temporary Regulation S Global Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Until
      the
      provision of the certifications required by Section
      6
      of the
      Series 2006-A Supplement, beneficial interests in a Regulation S Global Note
      may
      only be held through Euroclear or Clearstream or another agent member of
      Euroclear or Clearstream acting for and on behalf of them.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial
      interests represented by this Temporary Regulation S Global Note, details of
      such redemption, purchase, exchange or cancellation shall be entered by the
      Paying Agent in Schedule
      A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed on by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Temporary Regulation
      S
      Global Note and the beneficial interests represented by the Permanent Regulation
      S Global Note shall be reduced or increased, as appropriate, by the principal
      amount so redeemed, purchased, exchanged or cancelled.

     

    Each
      Class B Noteholder, by acceptance of a Class B Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class B Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United Stated Federal or state bankruptcy or
      similar law in connection with any obligations relating to the Class B Notes,
      the Indenture or the Transaction Documents.

     

    Each
      Class B Noteholder, by acceptance of a Class B Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class B Noteholder will
      treat such Class B Note as indebtedness for all federal, state and local income
      and franchise tax purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class B Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class B Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class B Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class B Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    The
      term
“Issuer”
as
      used
      in this Class B Note includes any successor to the Issuer under the
      Indenture.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Noteholders under
      the
      Indenture.

     

    The
      Class
      B Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class B Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class B Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class
      B
      Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class B Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class B Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

     

    
      	Dated:	 	
              _______________ 5 

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 

    

     

    

    
      5 NOTE:
        The
        signature to this assignment must correspond with the name of the registered
        owner as it appears on the face of the within Class B Note in every particular,
        without alteration, enlargement or any change whatsoever.

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

     

    FOR
      NOTES REPRESENTED BY THE TEMPORARY

     

    REGULATION
      S GLOBAL NOTE, THE PERMANENT REGULATION S GLOBAL

     

    NOTE
      OR THE RESTRICTED GLOBAL NOTE, OR REDEMPTIONS OR

     

    PURCHASES
      AND CANCELLATIONS

     

    The
      following exchanges of a part of this Temporary Regulation S Global Note for
      the
      Permanent Regulation S Global Note or the Restricted Global Note or an exchange
      of a part of the Restricted Global Note for a part of this Temporary Regulation
      S Global Note, in whole or in part, or redemptions, purchases or cancellation
      of
      this Temporary Regulation S Global Note have been made:

     

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Part
                of principal amount of this Temporary Regulation S Global Note exchanged
                for Notes represented by the Permanent Regulation S Global Note or
                the
                Restricted Global Note, or redeemed or purchased or
                cancelled

            	 	
              Part
                of principal amount of the Regulation S Global Note exchanged for
                Notes
                represented by this Temporary Regulation S Global Note

            	 	
              Remaining
                principal amount of this Temporary Regulation S Global Note following
                such
                exchange, or redemption or purchase or cancellation

            	
              Amount
                of interest paid with delivery of the Permanent Regulation S Global
                Note

            	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              ______________

            	
              _____________

            	
              _____________

            
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              ______________

            	
              _____________

            	
              _____________

            
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              ______________

            	
              _____________

            	
              _____________

            
	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-3

     

    FORM
      OF

     

    PERMANENT
      REGULATION S GLOBAL NOTE

     

    THIS
      GLOBAL NOTE IS A PERMANENT GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER
      THIS PERMANENT GLOBAL NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
      OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED
      TO
      BELOW.

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    THE
      INDENTURE CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER AND RESALE OF THIS
      NOTE.
      EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO HAVE ACCEPTED
      THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON TRANSFERABILITY. IN
      ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO
      HAVE
      MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              No.
                REGS-1

            	
              $43,333,000

            
	 	
              CUSIP
                No. U20772 AE 6

            
	 	
              ISIN
                USU20772AE68

            

    

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS B NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS B NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
      FACE HEREOF.

     

    CONN
      FUNDING II, L.P.

     

    5.854%
      ASSET BACKED FIXED RATE NOTES, CLASS B, SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal amount set forth
      on
      Schedule A attached hereto (which sum shall not exceed $43,333,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Class B Note shall be due and payable
      on April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class B Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Class B Note is paid or made available for payment, on the average daily
      outstanding principal balance of this Class B Note during the related Interest
      Period (as defined in the Series 2006-A Supplement). Interest will be computed
      on the basis set forth in the Indenture. Such principal of and interest on
      this
      Class B Note shall be paid in the manner specified on the reverse hereof. The
      aggregate principal sum of the Regulation S Global Notes and the Restricted
      Global Note shall not exceed $43,333,000.

     

    The
      Class
      B Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class B Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class B Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class B Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class B Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually
      or in facsimile, by its Authorized Officer as of the date set forth
      below.

    
      
         

        
          	 	 	 
	 	CONN
                  FUNDING II,
                  L.P.
	 
 	 
 	 
 
	 	By:  	Conn
                  Funding II GP, L.L.C.,
	 	its general
                  partner

        

        
          	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Authorized
                  Officer
	 	 

        

         

        
          	Attested
                  to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
                  
Authorized
                  Officer	 	 	
                
	 	 	 	 

        

        
 

        CERTIFICATE
          OF AUTHENTICATION

         

        
          This
            is
            one of the Class B Notes referred to in the within mentioned Series 2006-A
            Supplement.

        

         

        
          	 	 	 
	 	WELLS
                  FARGO BANK,
                  NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely
                  as
                  Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                  

                  Authorized
                    Officer

                
	 	 

        

         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [REVERSE
      OF NOTE]

     

    This
      Class B Note is one of a duly authorized issue of Class B Notes of the Issuer,
      designated as its 5.854% Asset Backed Fixed Rate Notes, Class B, Series 2006-A
      (herein called the “Class
      B Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the Series
      2006-A Supplement and supplements and amendments relating to other series of
      notes, as supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee”,
      which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Class B Noteholders.
      The Class B Notes are subject to all terms of the Indenture. All terms used
      in
      this Class B Note that are defined in the Indenture shall have the meanings
      assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class B Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid, in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class B Notes shall be made pro rata
      to the
      Class B Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class B Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class B Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class B Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class B Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class B Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class B Noteholders and of any
      Class
      B Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      B
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class B Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial interest
      represented by this Permanent Regulation S Global Note, details of such
      redemption, purchase, exchange or cancellation shall be entered by the Paying
      Agent in Schedule A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Permanent Regulation
      S
      Global Note and the beneficial interests represented by this Permanent
      Regulation S Global Note shall be reduced or increased, as appropriate, by
      the principal amount so redeemed, purchased, exchanged or
      cancelled.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      Class B Noteholder, by acceptance of a Class B Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class B Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United Stated federal or state bankruptcy or
      similar law in connection with any obligations relating to the Class B Notes,
      the Indenture or the Transaction Documents.

     

    Each
      Class B Noteholder, by acceptance of a Class B Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class B Noteholder will
      treat such Class B Note as indebtedness for all federal, state and local income
      and franchise tax purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class B Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class B Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class B Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class B Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    The
      term
“Issuer”
as
      used
      in this Class B Note includes any successor to the Issuer under the
      Indenture.

     

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Noteholders under
      the
      Indenture.

     

    The
      Class
      B Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class B Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class B Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class
      B
      Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class B Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class B Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

    
      	Dated: 	 	
              ______________ 6 

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 

    

    
      

        

        
          6 NOTE:
            The
            signature to this assignment must correspond with the name of the registered
            owner as it appears on the face of the within Class B Note in every particular,
            without alteration, enlargement or any change
            whatsoever.

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

     

    BETWEEN
      THIS PERMANENT REGULATION S

     

    GLOBAL
      NOTE AND THE TEMPORARY REGULATION S GLOBAL

     

    NOTE
      AND THE RESTRICTED GLOBAL NOTE,

     

    OR
      REDEMPTIONS OR PURCHASES AND CANCELLATIONS

     

    The
      following increases or decreases in the principal amount of this Permanent
      Regulation S Global Note or redemptions, purchases or cancellation of this
      Permanent Regulation S Global Note have been made:

     

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Increases
                or decreases in principal amount of this Permanent Regulation S Global
                Note due to exchanges between the Temporary Regulation S Global Note
                or
                the Restricted Global Note and this Permanent Regulation S Global
                Note

            	 	
              Remaining
                principal amount of this Permanent Regulation S Global Note following
                such
                exchange, or redemption or purchase or cancellation

            	 	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	 	 	 	 	 	 	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-1

     

    FORM
      OF

     

    RESTRICTED
      GLOBAL NOTE

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THE
      INDENTURE (AS DEFINED BELOW) CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER
      AND
      RESALE OF THIS NOTE. EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS
      DEEMED TO HAVE ACCEPTED THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON
      TRANSFERABILITY. IN ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE
      HEREOF, IS DEEMED TO HAVE MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH
      IN
      THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

     

    EACH
      PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY
      BE
      RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES
      ACT
      PROVIDED BY RULE 144A THEREUNDER.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              No.
                R144A-1

            	
              $16,667,000

            
	 	
              CUSIP
                No. 207415 AF 7

            
	 	
              ISIN
                US207415AF78

            

    

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS C NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS C NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
      FACE HEREOF.

     

    CONN
      FUNDING II, L.P.

     

    6.814%
      ASSET BACKED FIXED RATE NOTES, CLASS C, SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal sum set forth on
      Schedule A attached hereto (which sum shall not exceed $16,667,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Note shall be due and payable on
      April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class C Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Note is paid or made available for payment, on the average daily outstanding
      principal balance of this Note during the related Interest Period (as defined
      in
      the Series 2006-A Supplement). Interest will be computed on the basis set forth
      in the Indenture. Such principal of and interest on this Note shall be paid
      in
      the manner specified on the reverse hereof. The aggregate principal sum of
      the
      Regulation S Global Notes and the Restricted Global Note shall not exceed
      $16,667,000.

     

    The
      Class
      C Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class C Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class C Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class C Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class C Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually
      or in facsimile, by its Authorized Officer as of the date set forth
      below.

     

    
      
         

        
          	 	 	 
	 	CONN
                  FUNDING II,
                  L.P.
	 
 	 
 	 
 
	 	By:  	Conn
                  Funding II GP, L.L.C.,
	 	its general
                  partner

        

        
          	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Authorized
                  Officer
	 	 

        

         

        
          	Attested
                  to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
                  
Authorized
                  Officer	 	 	
                
	 	 	 	 

        

        
 

        CERTIFICATE
          OF AUTHENTICATION

         

        
          This
            is
            one of the Class C Notes referred to in the within mentioned Series 2006-A
            Supplement.

        

         

        
          	 	 	 
	 	WELLS
                  FARGO BANK,
                  NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely
                  as
                  Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                  

                  Authorized
                    Officer

                
	 	 

        

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [REVERSE
      OF NOTE]

     

    This
      Class C Note is one of a duly authorized issue of Class C Notes of the Issuer,
      designated as its 6.814% Asset Backed Fixed Rate Notes, Class C, Series 2006-A
      (herein called the “Class
      C Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the
      Series 2006-A Supplement and supplements and amendments relating to other
      series of notes, as supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee,”
which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Class C Noteholders.
      The Class C Notes are subject to all terms of the Indenture. All terms used
      in
      this Class C Note that are defined in the Indenture shall have the meanings
      assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class C Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid, in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class C Notes shall be made pro rata
      to the
      Class C Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class C Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class C Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class C Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class C Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class C Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class C Noteholders and of any
      Class
      C Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      C
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class C Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial
      interests represented by this Restricted Global Note, details of such
      redemption, purchase, exchange or cancellation shall be entered by the Paying
      Agent in Schedule
      A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Restricted Global Note
      and the beneficial interests represented by the Restricted Global Note shall
      be
      reduced or increased, as appropriate, by the principal amount so redeemed,
      purchased, exchanged or cancelled.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      Class C Noteholder, by acceptance of a Class C Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class C Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United States federal or state bankruptcy or
      similar law in connection with any obligations relating to the Notes, the
      Indenture or the Transaction Documents.

     

    Each
      Class C Noteholder, by acceptance of a Class C Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class C Noteholder will
      treat such Class C Note as indebtedness for all Federal, state and local income
      and franchise tax purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class C Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class C Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class C Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class C Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    The
      term
“Issuer”
as
      used
      in this Class C Note includes any successor to the Issuer under the
      Indenture.

     

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Holders of Notes
      under
      the Indenture.

     

    The
      Class
      C Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class C Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class C Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class
      C
      Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class C Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class C Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

     

    
      	Dated:	 	
              _______________ 7 

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

     

    
      

        

        
          7 NOTE:
            The
            signature to this assignment must correspond with the name of the registered
            owner as it appears on the face of the within Class B Note in every particular,
            without alteration, enlargement or any change
            whatsoever.

        

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

    BETWEEN
      THE TEMPORARY REGULATION S GLOBAL NOTE

    OR
      THE PERMANENT REGULATION S GLOBAL NOTE AND

    THIS
      RESTRICTED GLOBAL NOTE, OR REDEMPTIONS

    OR
      PURCHASES AND CANCELLATIONS

     

    The
      following increases or decreases in principal amount of this Restricted Global
      Note or redemptions, purchases or cancellation of this Restricted Global Note
      have been made:

     

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Increase
                or decrease in principal amount of this Restricted Global Note due
                to
                exchanges between the Temporary Regulation S Global Note or the Permanent
                Regulation S Global Note and this Restricted Global Note

            	 	
              Remaining
                principal amount of this Restricted Global Note following such exchange,
                or redemption or purchase or cancellation

            	 	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ________________

            	 	
              _____________

            	 	
              _____________

            
	 	 	 	 	 	 	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-2

     

    FORM
      OF

     

    TEMPORARY
      REGULATION S GLOBAL NOTE

     

    THIS
      GLOBAL NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER
      THIS TEMPORARY REGULATION S GLOBAL NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN
      MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE
      REFERRED TO BELOW.

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    THE
      INDENTURE CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER AND RESALE OF THIS
      NOTE.
      EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO HAVE ACCEPTED
      THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON TRANSFERABILITY. IN
      ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO
      HAVE
      MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              No.
                TREGS-1

            	
              $16,667,000

            
	 	
              CUSIP
                No. U20772 AF 3

            
	 	
              ISIN
                USU20772AF34

            

    

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS C NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS C NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
      FACE HEREOF.

     

    CONN
      FUNDING II, L.P.

     

    6.814%
      ASSET BACKED FIXED RATE NOTES, CLASS C, SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal sum set forth on
      Schedule A attached hereto (which sum shall not exceed $16,667,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Class C Note shall be due and payable
      on April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class C Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Class C Note is paid or made available for payment, on the average daily
      outstanding principal balance of this Class C Note during the related Interest
      Period (as defined in the Series 2006-A Supplement). Interest will be computed
      on the basis set forth in the Indenture. Such principal of and interest on
      this
      Class C Note shall be paid in the manner specified on the reverse hereof. The
      aggregate principal sum of the Regulation S Global Notes and the Restricted
      Global Note shall not exceed $16,667,000.

     

    The
      Class
      C Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class C Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class C Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class C Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class C Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually
      or in facsimile, by its Authorized Officer as of the date set forth
      below.

    
       

      
        
           

          
            	 	 	 
	 	CONN
                    FUNDING II,
                    L.P.
	 
 	 
 	 
 
	 	By:  	Conn
                    Funding II GP, L.L.C.,
	 	its general
                    partner

          

          
            	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                    
Authorized
                    Officer
	 	 

          

           

          
            	Attested
                    to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
                    
Authorized
                    Officer	 	 	
                  
	 	 	 	 

          

          
 

          CERTIFICATE
            OF AUTHENTICATION

           

          
            This
              is
              one of the Class C Notes referred to in the within mentioned Series
              2006-A
              Supplement.

          

           

          
            	 	 	 
	 	WELLS
                    FARGO BANK,
                    NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely
                    as
                    Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                    

                    Authorized
                      Officer

                  
	 	 

          

        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    [REVERSE
      OF NOTE]

     

    This
      Class C Note is one of a duly authorized issue of Class C Notes of the Issuer,
      designated as its 6.814% Asset Backed Fixed Rate Notes, Class C, Series 2006-A
      (herein called the “Class
      C Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the
      Series 2006-A Supplement and supplements and amendments relating to other
      series of notes, as supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee”,
      which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Holders of the Class
      C
      Notes. The Class C Notes are subject to all terms of the Indenture. All terms
      used in this Class C Note that are defined in the Indenture shall have the
      meanings assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class C Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid, in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class C Notes shall be made pro rata
      to the
      Class C Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class C Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class C Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class C Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class C Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class C Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class C Noteholders and of any
      Class
      C Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      C
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class C Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    Any
      interest in a Class C Note evidenced by this Temporary Regulation S Global
      Note
      is exchangeable for an interest in a Permanent Regulation S Global Note upon
      the
      later of (i) the Exchange Date and (ii) the furnishing of a certificate, the
      form of which is attached as Exhibit
      C-2
      to the
      Series 2006-A Supplement. Interests in this Temporary Regulation S Global Note
      are exchangeable for interests in a Permanent Regulation S Global Note or a
      Restricted Global Note only upon presentation of the applicable certificate
      required by Section
      6
      of the
      Series 2006-A Supplement to the Base Indenture. Upon exchange of all interests
      in this Temporary Regulation S Global Note for interests in the Permanent
      Regulation S Global Note and/or the Restricted Global Note, the Trustee shall
      cancel this Temporary Regulation S Global Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Until
      the
      provision of the certifications required by Section
      6
      of the
      Series 2006-A Supplement, beneficial interests in a Regulation S Global Note
      may
      only be held through Euroclear or Clearstream or another agent member of
      Euroclear or Clearstream acting for and on behalf of them.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial
      interests represented by this Temporary Regulation S Global Note, details of
      such redemption, purchase, exchange or cancellation shall be entered by the
      Paying Agent in Schedule
      A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed on by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Temporary Regulation
      S
      Global Note and the beneficial interests represented by the Permanent Regulation
      S Global Note shall be reduced or increased, as appropriate, by the principal
      amount so redeemed, purchased, exchanged or cancelled.

     

    Each
      Class C Noteholder, by acceptance of a Class C Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class C Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United Stated Federal or state bankruptcy or
      similar law in connection with any obligations relating to the Class C Notes,
      the Indenture or the Transaction Documents.

     

    Each
      Class C Noteholder, by acceptance of a Class C Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class C Noteholder will
      treat such Class C Note as indebtedness for all federal, state and local income
      and franchise tax purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class C Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class C Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class C Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class C Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      term
“Issuer”
as
      used
      in this Class C Note includes any successor to the Issuer under the
      Indenture.

     

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Class C Noteholders
      under the Indenture.

     

    The
      Class
      C Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class C Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class C Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class
      C
      Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class C Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class C Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

    
      	Dated: 	 	
              _______________ 8 

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

     

     

    
      

        

        
          8 NOTE:
            The
            signature to this assignment must correspond with the name of the registered
            owner as it appears on the face of the within Class C Note in every particular,
            without alteration, enlargement or any change
            whatsoever.

        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

    FOR
      NOTES REPRESENTED BY THE TEMPORARY

    REGULATION
      S GLOBAL NOTE, THE PERMANENT REGULATION S GLOBAL

    NOTE
      OR THE RESTRICTED GLOBAL NOTE, OR REDEMPTIONS OR

    PURCHASES
      AND CANCELLATIONS

     

    The
      following exchanges of a part of this Temporary Regulation S Global Note for
      the
      Permanent Regulation S Global Note or the Restricted Global Note or an exchange
      of a part of the Restricted Global Note for a part of this Temporary Regulation
      S Global Note, in whole or in part, or redemptions, purchases or cancellation
      of
      this Temporary Regulation S Global Note have been made:

     

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Part
                of principal amount of this Temporary Regulation S Global Note exchanged
                for Notes represented by the Permanent Regulation S Global Note or
                the
                Restricted Global Note, or redeemed or purchased or
                cancelled

            	 	
              Part
                of principal amount of the Regulation S Global Note exchanged for
                Notes
                represented by this Temporary Regulation S Global Note

            	 	
              Remaining
                principal amount of this Temporary Regulation S Global Note following
                such
                exchange, or redemption or purchase or cancellation

            	 	
              Amount
                of interest paid with delivery of the Permanent Regulation S Global
                Note

            	 	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	
              ___________

            	 	
              _______________

            	 	
              ______________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	 	 	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-3

     

    FORM
      OF

     

    PERMANENT
      REGULATION S GLOBAL NOTE

     

    THIS
      GLOBAL NOTE IS A PERMANENT GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER
      THIS PERMANENT GLOBAL NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
      OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED
      TO
      BELOW.

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
      IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
      TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
      AN INTEREST HEREIN.

     

    THIS
      NOTE
      HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER
      JURISDICTION. THIS NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO A
      PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE 144A, (2) OUTSIDE THE UNITED STATES TO A NON U.S. PERSON (AS SUCH TERM
      IS
      DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
      WITH REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO A REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
      CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER UNDER THE SECURITIES
      ACT), (4) UNDER THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE
      OR
      (5) IN A TRANSACTION OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL, IN FORM AND
      SUBSTANCE APPROVED BY THE ISSUER OR TRANSFER AGENT, IF THE ISSUER OR TRANSFER
      AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE
      INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
      OR ANY OTHER APPLICABLE JURISDICTION, SUBJECT IN EACH OF THE ABOVE CASES TO
      ANY
      REQUIREMENT OF LAW THAT THE DISPOSITION OF THE SELLER’S PROPERTY OR THE PROPERTY
      OF AN INVESTMENT ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN THE SELLER’S OR
      ACCOUNT’S CONTROL. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
      NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH
      ABOVE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BY
      ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN), EACH PURCHASER OR TRANSFEREE
      SHALL
      BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE
      NOTE
      WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
      IS SUBJECT TO TITLE I OF ERISA, A “PLAN” AS DESCRIBED IN SECTION 4975(e)(1) OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO
      HOLD PLAN ASSETS OF ANY OF THE FOREGOING, OR A GOVERNMENTAL PLAN SUBJECT TO
      APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION
      4975 OF THE CODE OR (II) ITS PURCHASE AND HOLDING OF THIS NOTE (OR ANY INTEREST
      HEREIN) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
      406
      OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN,
      ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW).

     

    THE
      INDENTURE CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER AND RESALE OF THIS
      NOTE.
      EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO HAVE ACCEPTED
      THIS NOTE, SUBJECT TO THE FOREGOING RESTRICTIONS ON TRANSFERABILITY. IN
      ADDITION, EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO
      HAVE
      MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

     

    BY
      ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS
      SET FORTH IN THE INDENTURE AND HEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              No.
                REGS-1

            	
              $16,667,000

            
	 	
              CUSIP
                No. US0772 AF 3

            
	 	
              ISIN
                USU20772AF34

            

    

     

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    THE
      PRINCIPAL OF THIS CLASS C NOTE MAY BE PAYABLE IN INSTALLMENTS AS SET FORTH
      IN THE INDENTURE DEFINED HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
      OF THIS CLASS C NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
      FACE HEREOF.

     

    CONN
      FUNDING II, L.P.

    6.814%
      ASSET BACKED FIXED RATE NOTES, CLASS C, SERIES 2006-A

     

    Conn
      Funding II, L.P., a limited partnership organized and existing under the laws
      of
      the State of Texas (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay Cede & Co., or registered assigns,
      the principal sum set forth above or such other principal amount set forth
      on
      Schedule A attached hereto (which sum shall not exceed $16,667,000), payable
      on
      each Payment Date after the end of the Revolving Period (as defined in the
      Series 2006-A Supplement) in an amount equal to the Monthly Principal, as
      defined in Section 5.13
      of the
      Series 2006-A Supplement, dated as of August 1, 2006 (as amended,
      supplemented or otherwise modified from time to time, the “Series
      2006-A Supplement”),
      between the Issuer and the Trustee to the Base Indenture (described below);
      provided,
      however,
      that
      the entire unpaid principal amount of this Class C Note shall be due and payable
      on April 20, 2017 (the “Legal
      Final Payment Date”).
      The
      Issuer will pay interest on this Class C Note at the Note Rate (as defined
      in
      the Series 2006-A Supplement) on each Payment Date until the principal of this
      Class C Note is paid or made available for payment, on the average daily
      outstanding principal balance of this Class C Note during the related Interest
      Period (as defined in the Series 2006-A Supplement). Interest will be computed
      on the basis set forth in the Indenture. Such principal of and interest on
      this
      Class C Note shall be paid in the manner specified on the reverse hereof. The
      aggregate principal sum of the Regulation S Global Notes and the Restricted
      Global Note shall not exceed $16,667,000.

     

    The
      Class
      C Notes are subject to optional redemption in accordance with the Indenture
      on
      or after any Payment Date on which the Investor Interest is reduced to an amount
      less than or equal to 10% of the Initial Note Principal.

     

    The
      principal of and interest on this Class C Note are payable in such coin or
      currency of the United States of America as at the time of payment is legal
      tender for payment of public and private debts.

     

    Reference
      is made to the further provisions of this Class C Note set forth on the reverse
      hereof and to the Indenture, which shall have the same effect as though fully
      set forth on the face of this Class C Note.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual signature, this Class C Note shall not be entitled
      to any benefit under the Indenture referred to on the reverse hereof, or be
      valid or obligatory for any purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually
      or in facsimile, by its Authorized Officer as of the date set forth
      below.

    
       

      
        	 	 	 
	 	CONN
                FUNDING II,
                L.P.
	 
 	 
 	 
 
	 	By:  	Conn
                Funding II GP, L.L.C.,
	 	its general
                partner

      

      
        	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Authorized
                Officer
	 	 

      

       

      
        	Attested
                to:	 	 	 
	 	 	 	 
	By:  	 	 	 
	
                
Authorized
                Officer	 	 	
              
	 	 	 	 

      

      

        CERTIFICATE
          OF AUTHENTICATION

         

        
          This
            is
            one of the Class C Notes referred to in the within mentioned Series 2006-A
            Supplement.

        

         

        
          	 	 	 
	 	WELLS
                  FARGO BANK,
                  NATIONAL ASSOCIATION, not in its
	 	individual capacity, but solely
                  as
                  Trustee 
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                  

                  Authorized
                    Officer

                
	 	 

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [REVERSE
      OF NOTE]

     

    This
      Class C Note is one of a duly authorized issue of Class C Notes of the Issuer,
      designated as its 6.814% Asset Backed Fixed Rate Notes, Class C, Series 2006-A
      (herein called the “Class
      C Notes”),
      all
      issued under the Series 2006-A Supplement to the Base Indenture dated as of
      September 1, 2002 (such Base Indenture, as supplemented by the Series
      2006-A Supplement and supplements and amendments relating to other series of
      notes, as supplemented or amended, is herein called the “Indenture”),
      between the Issuer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
      “Trustee”,
      which
      term includes any successor Trustee under the Indenture), to which Indenture
      reference is hereby made for a statement of the respective rights and
      obligations thereunder of the Issuer, the Trustee and the Class C Noteholders.
      The Class C Notes are subject to all terms of the Indenture. All terms used
      in
      this Class C Note that are defined in the Indenture shall have the meanings
      assigned to them in or pursuant to the Indenture.

     

    Principal
      of the Class C Notes will be payable on each Payment Date after the end of
      the
      Revolving Period and may be prepaid, in each case, as set forth in the
      Indenture. “Payment
      Date”
means
      the twentieth day of each calendar month, or, if any such date is not a Business
      Day, the next succeeding Business Day, commencing on September 20,
      2006.

     

    All
      principal payments on the Class C Notes shall be made pro rata
      to the
      Class C Noteholders entitled thereto.

     

    Subject
      to certain limitations set forth in the Indenture, payments of interest on
      this
      Class C Note due and payable on each Payment Date, together with the installment
      of principal, if any, to the extent not in full payment of this Class C Note,
      shall be made by wire transfer in immediately available funds to the Person
      whose name appears as the Class C Noteholder on the Note Register as of the
      close of business on each Record Date without requiring that this Class C Note
      be submitted for notation of payment. Any reduction in the principal amount
      of
      this Class C Note effected by any payments made on any Payment Date or date
      of
      prepayment shall be binding upon all future Class C Noteholders and of any
      Class
      C Note issued upon the registration of transfer hereof or in exchange hereof
      or
      in lieu hereof, whether or not noted on Schedule
      A
      attached
      hereto. If funds are expected to be available, as provided in the Indenture,
      for
      payment in full of the then remaining unpaid principal amount of this Class
      C
      Note on a Payment Date, then the Trustee, in the name of and on behalf of the
      Issuer, will notify the Person who was the Holder hereof as of the Record Date
      preceding such Payment Date by notice mailed prior to such Payment Date and
      the
      amount then due and payable shall be payable only upon presentation and
      surrender of this Class C Note at the Trustee’s principal Corporate Trust Office
      or at the office of the Trustee’s agent appointed for such purposes located in
      the City of New York.

     

    On
      any
      redemption, purchase, exchange or cancellation of any of the beneficial interest
      represented by this Permanent Regulation S Global Note, details of such
      redemption, purchase, exchange or cancellation shall be entered by the Paying
      Agent in Schedule A
      hereto
      recording any such redemption, purchase, exchange or cancellation and shall
      be
      signed by or on behalf of the Issuer. Upon any such redemption, purchase,
      exchange or cancellation, the principal amount of this Permanent Regulation
      S
      Global Note and the beneficial interests represented by this Permanent
      Regulation S Global Note shall be reduced or increased, as appropriate, by
      the principal amount so redeemed, purchased, exchanged or
      cancelled.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      Class C Noteholder, by acceptance of a Class C Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class C Noteholder will
      not
      prior to the date which is one year and one day after the payment in full of
      the
      last maturing note of any Series and the termination of the Indenture institute
      against the Issuer or join in any institution against the Issuer of, any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
      or other proceedings, under any United Stated federal or state bankruptcy or
      similar law in connection with any obligations relating to the Class C Notes,
      the Indenture or the Transaction Documents.

     

    Each
      Class C Noteholder, by acceptance of a Class C Note, covenants and agrees that
      by accepting the benefits of the Indenture that such Class C Noteholder will
      treat such Class C Note as indebtedness for all federal, state and local income
      and franchise tax purposes.

     

    Prior
      to
      the due presentment for registration of transfer of this Class C Note, the
      Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
      the Person in whose name this Class C Note (as of the day of determination
      or as
      of such other date as may be specified in the Indenture) is registered as
      the owner hereof for all purposes, whether or not this Class C Note be overdue,
      and neither the Issuer, the Trustee nor any such agent shall be affected by
      notice to the contrary.

     

    As
      provided in the Indenture, no recourse may be taken, directly or indirectly,
      with respect to the obligations of the Issuer under the Indenture, including
      this Class C Note, against any Seller, the Servicer, the Trustee or any partner,
      owner, incorporator, beneficiary, beneficial owner, agent, officer, director,
      employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
      Trustee except as any such Person may have expressly agreed.

     

    The
      term
“Issuer”
as
      used
      in this Class C Note includes any successor to the Issuer under the
      Indenture.

     

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Trustee and the Noteholders under
      the
      Indenture.

     

    The
      Class
      C Notes are issuable only in registered form as provided in the Indenture in
      denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

     

    This
      Class C Note and the Indenture shall be construed in accordance with the laws
      of
      the State of New York, without reference to its conflict of law provisions,
      and
      the obligations, rights and remedies of the parties hereunder and thereunder
      shall be determined in accordance with such laws.

     

    No
      reference herein to the Indenture and no provision of this Class C Note or
      of
      the Indenture shall alter or impair the obligation of the Issuer, which is
      absolute and unconditional, to pay the principal of and interest on this Class
      C
      Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      _____________________________________

     

    (name
      and address of assignee)

     

    the
      within Class C Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ____________, attorney, to transfer said Class C Note
      on the books kept for registration thereof, with full power of substitution
      in
      the premises.

     

    
      	Dated:	 	
              _______________ 9 

            
	 	 	
              Signature
                Guaranteed:

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

     

    
      

        

        
          9 NOTE:
            The
            signature to this assignment must correspond with the name of the registered
            owner as it appears on the face of the within Class C Note in every particular,
            without alteration, enlargement or any change
            whatsoever.

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    SCHEDULE
      OF EXCHANGES

    BETWEEN
      THIS PERMANENT REGULATION S

    GLOBAL
      NOTE AND THE TEMPORARY REGULATION S GLOBAL NOTE AND

    THE
      RESTRICTED GLOBAL NOTE,

    OR
      REDEMPTIONS OR PURCHASES AND CANCELLATIONS

     

    The
      following increases or decreases in the principal amount of this Permanent
      Regulation S Global Note or redemptions, purchases or cancellation of this
      Permanent Regulation S Global Note have been made:

     

    
      	
              Date
                of exchange, or redemption or purchase or cancellation

            	 	
              Increases
                or decreases in principal amount of this Permanent Regulation S Global
                Note due to exchanges between the Temporary Regulation S Global Note
                or
                the Restricted Global Note and this Permanent Regulation S Global
                Note

            	 	
              Remaining
                principal amount of this Permanent Regulation S Global Note following
                such
                exchange, or redemption or purchase or cancellation

            	 	
              Notation
                made by or on behalf of the Issuer

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	
              __________

            	 	
              ______________

            	 	
              _____________

            	 	
              _____________

            
	 	 	 	 	 	 	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

     

    FORM
      OF MONTHLY NOTEHOLDERS’ STATEMENT

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E-1

     

    FORM
      OF TRANSFER CERTIFICATE

     

    
      	
              To:

            	
              Wells
                Fargo Bank, National Association,

            

      	 	as Trustee and Registration and Transfer
              Agent

      	 	MAC N9311-161

      	 	6th
              and Marquette

      	 	Minneapolis, Minnesota
              55479-0700 

      	 	Attention: Corporate Trust Services/Asset-Backed
              Administration

    

     

     

     

    
      	
              Re:

            	
              Conn
                Funding II, L.P.-[__]% Asset Backed

            

      	 	 Fixed Rate Notes, Class [__], Series 2006-A (CUSIP
              No. [_________])

    

     

     

     

    This
      Certificate relates to $_____________ principal amount of Class [__] Notes
      held
      in

     

    
      	
                  o  book-entry
                or

            
	
                  o    definitive
                form

            

    

    

    by
                                            
      (the
      “Transferor”)
      issued
      pursuant to the Base Indenture, dated as of September 1, 2002, between Conn
      Funding II, L.P., as Issuer, and Wells Fargo Bank, National Association, as
      Trustee (as amended, supplemented or otherwise modified from time to time,
      the
“Base
      Indenture”)
      and
      the Series 2006-A Supplement thereto, dated as of August 1, 2006 (as
      amended, supplemented or otherwise modified from time to time, the “Series
      Supplement”
and,
      together with the Base Indenture, the “Indenture”).
      Capitalized terms used herein and not otherwise defined, shall have the meanings
      given thereto in the Indenture.

     

    The
      Transferor has requested the Trustee by written order to exchange or register
      the transfer of a Note or Notes.

     

    In
      connection with such request and in respect of each such Note, the Transferor
      does hereby certify as follows:

     

    o
      Such Note is being
      acquired for its own account.

     

    o
      Such Note is being
      transferred pursuant to and in accordance with Rule 144A under the
      Securities Act, and, accordingly, the Transferor further certifies that the
      Series 2006-A Notes are being transferred to a Person that the Transferor
      reasonably believes is purchasing the Series 2006-A Notes for its own account,
      or for an account with respect to which such Person exercises sole investment
      discretion, and such Person and such account is a “qualified institutional
      buyer” within the meaning of Rule 144A in a transaction meeting the requirements
      of Rule 144A; or (ii) pursuant to an exemption from registration in accordance
      with Regulation S under the Securities Act.

     

    o
      Such Note is being
      transferred in reliance on and in compliance with an exemption from the
      registration requirements of the Securities Act, other than Rule 144A or
      Regulation S under the Securities Act, and in compliance with other applicable
      state and federal securities laws and, if requested by the Trustee, an opinion
      of counsel is being furnished simultaneously with the delivery of this
      Certificate as required under Section 6
      of the
      Series Supplement. This Certificate and the statements contained therein are
      made for your benefit and the benefit of the Issuer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      
        	 	 	 
	 	[INSERT
                NAME OF TRANSFEROR]
	 
 	 
 	 
 
	Date: 	By:  	 
	 	
                
Name:
	 	Title 

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E-2

     

    FORM
      OF CERTIFICATE TO BE DELIVERED TO

    EXCHANGE
      TEMPORARY REGULATION S GLOBAL NOTE

    FOR
      PERMANENT REGULATION S GLOBAL NOTE

     

    Conn
      Funding II, L.P.

    3295
      College Street

    Beaumont,
      Texas 77701

    Attn:
      David Atnip

    Wells
      Fargo Bank, National Association,

    as
      Trustee and Registration and Transfer Agent

    MAC
      N9311-161

    6th
      and
      Marquette

    Minneapolis,
      Minnesota 55479-0700

    Attention:
      Corporate Trust Services/Asset-Backed Administration

     

    Reference
      is hereby made to the Base Indenture, dated as of September 1, 2002,
      between Conn Funding II, L.P., as Issuer, and Wells Fargo Bank, National
      Association, as Trustee (as amended, supplemented otherwise modified from time
      to time, the “Base
      Indenture”)
      and
      the Series 2006-A Supplement thereto, dated as of August 1, 2006 (as
      amended, supplemented or otherwise modified from time to time, the “Series
      Supplement”
and,
      together with the Base Indenture, the “Indenture”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Base Indenture.

     

    This
      is
      to certify that, based solely on certificates, we have received in writing,
      by
      tested telex or by electronic transmissions from noteholders appearing in our
      records as persons being entitled to a portion of the principal amount of the
      Class [__] Notes represented by the Temporary Regulation S Note equal to, as
      of
      the date hereof, U.S. $_______ (our “Class
      [__] Noteholders”),
      certificates with respect to such portion, substantially to the effect set
      forth
      in Exhibit
      [__]
      hereto.

     

    We
      further certify (i) that we are not making available herewith for exchange
      any
      portion of the Temporary Regulation S Global Note excepted in such certificates
      and (ii) that as of the date hereof we have not received any notification from
      any of our Class [__] Noteholders to the effect that the statements made by
      such
      Class [__] Noteholder with respect to any portion of the part submitted herewith
      for exchange are no longer true and cannot be relied upon as at the date hereof.
      We understand that this certification is required in connection with certain
      securities laws of the United States. In connection therewith, if administrative
      or legal proceedings are commenced or threatened in connection with which this
      certificate is or would be relevant, we irrevocably authorize you to produce
      this certification to any interested party in such proceedings.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Dated:
      _______________, [_______]10  To
      be dated no earlier than the earliest of the Exchange Date or the relevant
      Interest Payment Date or the redemption date (as the case may
      be).

     

    
      	 	 	 
	 	Yours
              faithfully,
	 	 
	 	[Euroclear/Clearstream], 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    [Euroclear/Clearstream]

     

    
      	 	
              Re:

            	
              Conn
                Funding II, L.P. —[__]% Asset
                Backed

            

    

     

    Fixed
      Rate Notes, Class [__], Series 2006-A (CUSIP (CINS) No. [______])

     

    Ladies
      and Gentlemen:

     

    Reference
      is hereby made to the Base Indenture, dated as of September 1, 2002 (as
      amended, supplemented or otherwise modified from time to time, the “Base
      Indenture”),
      between Conn Funding II, L.P. (the “Issuer”)
      and
      Wells Fargo Bank, National Association, as Trustee and the Series 2006-A
      Supplement thereto, dated as of August 1, 2006 (as amended, supplemented or
      otherwise modified from time to time, the “Series
      Supplement”
and,
      together with the Base Indenture, the “Indenture”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Indenture.

     

    This
      letter relates to $______ principal amount of Class [___]
      Notes
      which are represented by a beneficial interest in the Temporary Regulation
      S
      Global Note held with [Euroclear/Clearstream]
      (ISIN
      CODE [_____])
      through
      DTC by or on behalf of the undersigned as beneficial owner (the “Holder”)
      which
      bears a legend outlining restrictions upon transfer of such interests in such
      Class [___]
      Note.
      Pursuant to paragraph
      6(c)(ii)
      of the
      Series Supplement, the Holder hereby certifies that it is not (or it holds
      such
      securities on behalf of an account that is not) a “U.S. person” as such term is
      defined in Regulation S promulgated under the U.S. Securities Act of 1933,
      as
      amended (“Regulation
      S”).
      Accordingly, you are hereby requested to exchange such beneficial interest
      in
      the Temporary Regulation S Global Note for a beneficial interest in the
      Permanent Regulation S Global Note representing an identical principal amount
      of
      Class [___]
      Notes,
      all in the manner provided for in the Series Supplement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      of
      you is entitled to rely upon this letter and is irrevocably authorized to
      produce this letter or a copy hereof to any interested party in any
      administrative or legal proceedings or official inquiry with respect to the
      matters covered hereby. Terms used in this certificate have the meanings set
      forth in Regulation S.

     

    
      	 	 	 
	 	Very
              truly
              yours,
	 	[NAME OF HOLDER]
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Authorized
              Signature
	 	 
	 	 
	Dated: _______________, [_______]	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E-3

     

    FORM
      OF TRANSFER CERTIFICATE

    FOR
      TRANSFER OR EXCHANGE FROM RESTRICTED GLOBAL

    NOTE
      TO TEMPORARY REGULATION S GLOBAL NOTE

     

    (exchanges
      or transfers pursuant to

    Section 6
      of the Series Supplement)

     

    Wells
      Fargo Bank, National Association,

    as
      Trustee and Registration and Transfer Agent

    MAC
      N9311-161

    6th
      and
      Marquette

    Minneapolis,
      Minnesota 55479-0700

    Attention:
      Corporate Trust Services/Asset-Backed Administration

     

    
      	 	
              Re:

            	
              Conn
                Funding II, L.P. (the “Issuer”)

            

      	 	 	[__]% Asset Backed Fixed Rate

      	 	 	Notes, Class [__], Series 2006-A (CUSIP No.
[_______])
              (the “Notes”)

    

     

     

     

     

     

    Reference
      is hereby made to the Base Indenture, dated as of September 1, 2002 (as
      amended, supplemented or otherwise modified from time to time, the “Base
      Indenture”),
      between the Issuer and Wells Fargo Bank, National Association, as Trustee and
      the Series 2006-A Supplement thereto, dated as of August 1, 2006 (as
      amended, supplemented or otherwise modified from time to time, the “Series
      Supplement”
and,
      together with the Base Indenture, the “Indenture”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Indenture.

     

    This
      letter relates to $_______ principal amount of the Class [__] Notes represented
      by a beneficial interest in the Restricted Global Note held with DTC by or
      on
      behalf of the undersigned as beneficial owner (the “Transferor”).
      The
      Transferor has requested an exchange or transfer of its beneficial interest
      for
      an interest in the Temporary Regulation S Global Series 2006-A Note (CUSIP
      (CINS) No. [____________])
      to be
      held with [Euroclear]
      [Clearstream]
      (ISIN
      Code [_______])
      through
      DTC.

     

    In
      connection with such request and in respect of such Class [__] Note, the
      Transferor does hereby certify that such exchange or transfer has been effected
      in accordance with the transfer restrictions set forth in the Class [__] Notes
      and the Series Supplement and pursuant to and in accordance with Regulation
      S
      and any applicable laws of the relevant jurisdiction, and accordingly the
      Transferor does hereby certify that:

     

     

     

    
      	 	(1)	
            	the offer of the Class [__] Notes was not made to
              a
              person in the United States;  

      	 	 	 	 

      	 	
              (2)

            	
              (A)

            	
              at
                the time the buy order was originated, the transferee was outside
                the
                United States or the Transferor and any person acting on its behalf
                reasonably believed and believes that the transferee was outside
                the
                United States, or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	 	
              (B)

            	
              the
                transaction was executed in, on or through the facilities of a designated
                offshore securities market and neither the Transferor nor any person
                acting on its behalf knows that the transaction was prearranged with
                a
                buyer in the United States;

            

    

     

    (3) no
      directed selling efforts have been made in contravention of the requirements
      of
      Rule 903(b) or 904(b) of Regulation S, as applicable;

     

    (4) the
      transaction is not part of a plan or scheme to evade the registration
      requirements of the Securities Act; and

     

    (5) upon
      completion of the transaction, the beneficial interest being transferred as
      described above will be held with DTC through Euroclear or Clearstream or both
      (ISIN Code [__________]).

     

    This
      certificate and the statements contained herein are made for your benefit and
      the benefit of the Issuer.

    
       

      
        	 	 	 
	 	[INSERT
                NAME OF TRANSFEROR]
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title 

      

       

    

    Dated:
      _______________, 2006

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E-4

     

    FORM
      OF TRANSFER CERTIFICATE

    FOR
      TRANSFER OR EXCHANGE FROM RESTRICTED GLOBAL

    NOTE
      TO PERMANENT REGULATION S GLOBAL NOTE

    (exchanges
      or transfers pursuant to

    Section 6
      of the Series Supplement)

     

    Wells
      Fargo Bank, National Association,

    as
      Trustee and Registration and Transfer Agent

    MAC
      N9311-161

    6th
      and
      Marquette

    Minneapolis,
      Minnesota 55479-0700

    Attention:
      Corporate Trust Services/Asset-Backed Administration

     

    
      	 	
              Re:

            	
              Conn
                Funding II, L.P. (the “Issuer”)

            

      	 	 	[__]% Asset Backed Fixed Rate

      	 	 	Notes, Class [__], Series 2006-A (CUSIP No.
[____])
              (the “Notes”)

    

     

    Reference
      is hereby made to the Base Indenture, dated as of September 1, 2002 (as
      amended, supplemented or otherwise modified from time to time, the “Base
      Indenture”),
      between the Issuer and Wells Fargo Bank, National Association, as Trustee and
      the Series 2006-A Supplement thereto, dated as of August 1, 2006 (as
      amended, supplemented or otherwise modified from time to time, the “Series
      Supplement”
and,
      together with the Base Indenture, the “Indenture”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Indenture.

     

    This
      letter relates to $_______ principal amount of the Class [__] Notes represented
      by a beneficial interest in the Restricted Global Note held with DTC by or
      on
      behalf of the undersigned as beneficial owner (the “Transferor”).
      The
      Transferor has requested an exchange or transfer of its beneficial interest
      for
      an interest in the Permanent Regulation S Global Note (CUSIP (CINS)
      No. [_________]).

     

    In
      connection with such request and in respect of such Class [__] Notes, the
      Transferor does hereby certify that such exchange or transfer has been effected
      in accordance with the transfer restrictions set forth in the Class [___]
      Notes
      and the Series Supplement and pursuant to and in accordance with Regulation
      S
      and any applicable securities laws of the relevant jurisdiction and
      that:

     

    (1) the
      offer
      of the Class [__] Notes was not made to a person in the United
      States;

     

    
      	 	
              (2)

            	
              (A)

            	
              at
                the time the buy order was originated, the transferee was outside
                the
                United States or the Transferor and any person acting on its behalf
                reasonably believed and believes that the transferee was outside
                the
                United States, or

            

    

     

    
      	 	 	
              (B)

            	
              the
                transaction was executed in, on or through the facilities of a designated
                offshore securities market and neither the Transferor nor any person
                acting on its behalf knows that the transaction was prearranged with
                a
                buyer in the United States;

            

    

     

    (3) no
      directed selling efforts have been made in contravention of the requirements
      of
      Rule 903(b) or 904(b) of Regulation S, as applicable, and

     

    (4) the
      transaction is not part of a plan or scheme to evade the registration
      requirements of the Securities Act.

     

    This
      certificate and the statements contained herein are made for your benefit and
      the benefit of the Issuer.

    
       

      
        	 	 	 
	 	[INSERT
                NAME OF TRANSFEROR]
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title 

      

       

    

    Dated:
      ________________, 2006

     

    

    
      
        E-4-2

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E-5

     

    FORM
      OF TRANSFER CERTIFICATE FOR TRANSFER OR

    EXCHANGE
      FROM TEMPORARY REGULATION S GLOBAL NOTE

    TO
      RESTRICTED GLOBAL NOTE

    (exchanges
      or transfers pursuant to

    Section
      6
      of the Series Supplement)

     

    Wells
      Fargo Bank, National Association,

    as
      Trustee and Registration and Transfer Agent

    MAC
      N9311-161

    6th
      and
      Marquette

    Minneapolis,
      Minnesota 55479-0700

    Attention:
      Corporate Trust Services/Asset-Backed Administration

     

    
      	 	
              Re:

            	
              Conn
                Funding II, L.P. (the “Issuer”)

            

      	 	 	[__]% Asset Backed Fixed Rate

      	 	 	Notes, Class [__], Series 2006-A (CUSIP No.
[_____])
              (the “Notes”)

      	 	 	 

    

     

     

    Reference
      is hereby made to the Base Indenture, dated as of September 1, 2002 (as
      amended, supplemented or otherwise modified from time to time, the “Base
      Indenture”),
      between the Issuer and Wells Fargo Bank, National Association, as Trustee and
      the Series 2006-A Supplement thereto dated as of August 1, 2006 (as
      amended, supplemented or otherwise modified from time to time, the “Series
      Supplement”
and,
      together with the Base Indenture, the “Indenture”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Indenture.

     

    This
      letter relates to $______ principal amount of Class [__] Notes which are
      represented by a beneficial interest in the Temporary Regulation S Global Note
      (CUSIP) (CINS) No. [________] with Euroclear/Clearstream11 
      (ISIN
      Code [_________]) through DTC by or on behalf of [the
      undersigned]
      as
      beneficial owner (the “Transferor”).
      The
      Transferor has requested an exchange or transfer of its beneficial interest
      in
      the Temporary Regulation S Global Note for an interest in the Restricted Global
      Note (CUSIP No. [__________]).

     

    In
      connection with such request, and in respect of the Notes, the Transferor does
      hereby certify that such Class [__] Notes are being transferred in accordance
      with Rule 144A and in compliance with any applicable state securities laws,
      to a
      transferee that is purchasing the Class [__] Notes for its own account or an
      account with respect to which the transferee exercises sole investment
      discretion and the transferee and any such account is a “qualified institutional
      buyer” within the meaning of Rule 144A, in each case in a transaction meeting
      the requirements of Rule 144A.

     

    
      

      
        11 Select
          appropriate depositary.

      

    

     

    
      
        E-5-1

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      certificate and the statements contained herein are made for your benefit and
      the benefit of the Issuer.

    
       

      
        	 	 	 
	 	[INSERT
                NAME OF TRANSFEROR]
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title 

      

       

    

    Dated:
      _________________, 2006

     

    

    
      
        E-5-2

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1

     

    LIST
      OF PROCEEDINGS

     

    None.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2

     

    LIST
      OF TRADE NAMES

     

    None.Exhibit
      10.1

     

    
      

      

LOAN
      AND
      SECURITY AGREEMENT

    

    Dated
      as
      of September 11, 2006

    

    Between

    

    MDU
      COMMUNICATIONS (USA) INC.

    

    (Borrower)

    

    and

    

    FCC,
      LLC,
      d/b/a First Capital

    

    (as
      Agent
      and as Lender)

    

    and

    

    FULL
      CIRCLE FUNDING, LP

    

    (as
      Lender)

     

    
      

      

    

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	 	 	Page
	 	 	 
	1.	DEFINITIONS	1
	 	 	 
	2.	BORROWING	7
	 	 	 
	3.	INTEREST AND FEES	9
	 	 	 
	4.	REPRESENTATIONS AND WARRANTIES OF
              BORROWER	11
	 	 	 
	5.	COLLATERAL	12
	 	 	 
	6. 	FINANCIAL COVENANTS	14
	 	 	 
	7.	COLLATERAL COVENANTS	14
	 	 	 
	8.	NEGATIVE COVENANTS	19
	 	 	 
	9. 	REPORTING AND INFORMATION	21
	 	 	 
	10. 	INSPECTION RIGHTS; EXPENSES;
              ETC.	22
	 	 	 
	11.	RIGHTS OF SETOFF, APPLICATION OF
              PAYMENTS,
              ETC.	23
	 	 	 
	12. 	ATTORNEY-IN-FACT	23
	 	 	 
	13.	DEFAULTS AND REMEDIES	24
	 	 	 
	14.	INDEMNIFICATION	27
	 	 	 
	15.	GENERAL PROVISIONS	27
	 	 	 
	16. 	AGENT	30

    

    

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

    Attachments:

    

    Schedule

    Exhibit
      A - Form of Borrowing Base Certificate

    Exhibit
      B - Form of Compliance Certificate

    Exhibit
      C- Forms of Customer Contracts

    Exhibit
      D - Supplier Contracts 

    

 

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

     

    LOAN
      AND SECURITY AGREEMENT

    

     

    This
      LOAN
      AND SECURITY AGREEMENT (this “Agreement”)
      is
      entered into as of this 11th
      day of
      September, 2006 between MDU Communications (USA) Inc., a Washington corporation
      (“Borrower”),
      and
      Full Circle Funding, L.P., a Delaware limited partnership (“Full Circle”) and
      FCC, LLC, d/b/a FIRST CAPITAL, a Florida limited liability company
      (“First
      Capital”)
      in its
      capacity as a Lender and as Agent, (each of Full Circle and First Capital a
      “Lender” and collectively “Lenders”).

     

    RECITALS:

     

    WHEREAS,
      Borrower has requested that Lenders provide Borrower with a secured lending
      facility; and

     

    WHEREAS,
      Lenders are willing to provide a secured lending facility to Borrower on the
      terms set forth in this Agreement.

     

    NOW,
      THEREFORE, Borrower and Lender hereby agree as follows:

     

    1. Definitions.
      For
      purposes of this Agreement:

    

    “Accounts”
means
      all presently existing or hereafter arising accounts receivable due to Borrower
      (including medical and health-care-insurance receivables), book debts, notes,
      drafts and acceptances and other forms of obligations now or hereafter owing
      to
      Borrower, whether arising from the sale or lease of goods or the rendition
      of
      services by Borrower (including any obligation that might be characterized
      as an
      account, contract right, general intangible or chattel paper under the UCC),
      all
      of Borrower’s rights in, to and under all purchase orders now or hereafter
      received by Borrower for goods and services, all proceeds from the sale of
      Inventory, all monies due or to become due to Borrower under all contracts
      for
      the sale or lease of goods or the rendition of services by Borrower (whether
      or
      not yet earned) (including the right to receive the proceeds of said purchase
      orders and contracts), all collateral security and guarantees of any kind given
      by any obligor with respect to any of the foregoing, and all goods returned
      to
      or reclaimed by Borrower that correspond to any of the foregoing.

    

    “Affiliate”
means,
      with respect to a Person, (a) any family member, officer, director or managing
      agent of such Person, and (b) any other Person (i) that, directly or indirectly,
      through one or more intermediaries, controls, or is controlled by, or is under
      common control with, such given Person, (ii) that, directly or indirectly
      beneficially owns or holds 10% or more of any class of voting stock or
      partnership or other interest of such Person or any subsidiary of such Person,
      or (iii) 10% or more of the voting stock or partnership or other interest
      of which is directly or indirectly beneficially owned or held by such Person
      or
      a subsidiary of such Person. The term “control” means the possession, directly
      or indirectly, of the power to direct or cause the direction of the management
      and policies of a Person, whether through ownership of voting securities or
      partnership or other interests, by con-tract or otherwise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    “Agent”
means
      First Capital in its capacity as agent for the Lenders under the Loan Documents
      and any successor in such capacity appointed pursuant to section
      16.

    

    “Aggregate
      Contracts”
shall
      mean all of the Bulk Contracts, Choice Contacts, and Exclusive Contracts,
      Consumer Service Agreements, Other Contracts and Supplier Contracts and any
      other agreements with suppliers of satellite, cable, or other service that
      Borrower resells as part of its business and rights, title, and interest in
      and
      payments under any of the foregoing.

    

    “Agreement
      Date”
means
      the date as of which this Agreement is dated.

    

    “Borrowing
      Base”
has
      the
      meaning set forth in Item
      1
      of the Schedule.

    

    “Borrowing
      Base Certificate”
means
      the certificate, substantially in the form of Exhibit
      A,
      with
      appropriate insertions, to be submitted to Lender by Borrower pursuant to this
      Agreement and certified as true and correct by the Chief Executive Officer
      or
      the Chief Financial Officer of Borrower.

    

    “Bulk
      Contract”
shall
      mean those Contracts with Commercial Customers that provide for provision of
      services to all units in the Property owned by the Commercial Customer and
      a
      monthly payment to Borrower from such Commercial Customer covering all units
      in
      the Property regardless of whether the Consumer Customer or resident in the
      individual units in such Property elect to utilize the services provided by
      Borrower and all rights, title and interest in and payments under any of the
      foregoing.

    

    “Business
      Day”
      means
      any
      day excluding Saturday, Sunday, and any day which is a legal holiday under
      the
      laws of the State of New York or which is a day on which Lender is otherwise
      closed for transacting business with the public.

    

    “Change
      of Control”
      means
      [redacted];

    

    “Choice
      Contracts”
shall
      mean those Contracts with Commercial Customers where Borrower has a nonexclusive
      right to sell its services in the Property owned by the Commercial Customer
      and
      all rights, title, and interest in and payments under any of the
      foregoing.

    

    “Collateral”
has
      the
      meaning set forth in Section
      5(a).

    

    “Commercial
      Customer”
means
      a
      party to a Contract that owns or manages a multiple dwelling unit and that
      is
      not a Consumer Customer.

    

    “Consumer
      Customer”
means
      a
      customer that is an individual tenant or resident at a Property and that is
      the
      end user for the services provided by the Borrower to a Property.

    

    “Contracts”
shall
      mean those agreements or contracts entered into by and between Borrower (or
      acquired by Borrower through an acquisition pursuant to which Borrower acquired
      all of its predecessor in interest’s rights, title, interests and benefits under
      the agreement), and its Customers [redacted] pursuant to which Borrower provides
      digital satellite television programming, private cable video service, high
      speed internet services, voice over internet protocol, other voice or data
      delivery services, and other goods and services reasonable related thereto
      in
      the multiple dwelling unit market and all rights, title, and interest in and
      payments under any of the foregoing, including all Contracts entered into after
      the Agreement Date.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    “Customer”
means
      all of Borrower’s Commercial Customers and Consumer Customers.

    

    “Customer
      Contracts”
      means
      all of the Bulk Contract, Choice Contracts, Competitive Contracts, Digital
      Satellite Agreements and Other Agreements, whether now existing or entered
      into
      after the Agreement Date.

    

    “Default”
has
      the
      meaning set forth in Section
      13(a).

    

    “Consumer
      Service Agreement”
means
      the agreements between Borrower and its Consumer Customers that provide digital
      satellite television service, high speed Internet and access thereto, including
      without limitation, the agreements titled [redacted]. 

    

    “Direct
      Costs”
means,
      on a per Customer Contract basis, [redacted].

     

    “Discounted
      Cash Flow”
shall
      mean an amount equal to the sum of [redacted]. 

     

    “Eligible
      Contracts”
means
      those Contracts arising from the sale of Inventory or performance of services
      in
      the ordinary course of Borrower’s business including Bulk Contracts, Exclusive
      Contracts, Choice Contracts and Supplier Contracts under which payments are
      due;
provided,
      however,
      that
      Eligible Contracts shall
      not
      include
      the following: [redacted]

    

    “Equipment”
means
      all of Borrower’s machinery, apparatus, equipment, motor vehicles, tractors,
      trailers, rolling stock, fittings, fixtures and other tangible personal property
      of every kind and description, together with all parts, accessories and special
      tools and all increases and accessions thereto and substitutions and
      replacements therefore.

    

    “Exclusive
      Contracts”
shall
      mean those Contracts with Commercial Customers that provide for Borrower to
      have
      the exclusive rights to sell its services to the Consumer Customers or other
      residents of the Property owned by the Commercial Customer, but does not provide
      for a payment to Borrower by the Commercial Customer other than for services
      such Commercial Customer purchases for its own account and all rights, title,
      and interest in and payments under any of the foregoing.

    

    “GAAP”
means
      generally accepted accounting principles set forth in the opinions and
      pronouncements of the Accounting Principles Board of the American Institute
      of
      Certified Public Accountants and statements and pronouncements of the Financial
      Accounting Standards Board that are applicable to the circumstances as of the
      date of determination and applied on a consistent basis.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    “General
      Intangibles”
means
      all of Borrower’s present and future general intangibles and all other presently
      owned or hereafter acquired intangible personal property of Borrower (including
      payment intangibles and any and all choses or things in action, goodwill,
      patents and patent applications, tradenames, servicemarks, trademarks and
      trademark applications, copyrights, blueprints, drawings, purchase orders,
      customer lists, monies due or recoverable from pension funds, route lists,
      infringement claims, software, computer programs, computer discs, computer
      tapes, literature, reports, catalogs, deposit accounts, tax refunds and tax
      refund claims) other than Goods and Accounts, as well as Borrower’s books and
      records relating to any of the foregoing.

    

    “Goods”
means
      all of Borrower’s present and hereafter acquired goods, as defined in the UCC,
      wherever located, including imbedded software to the extent included in “goods”
as defined in the UCC, manufactured homes, and standing timber that is cut
      and
      removed for sale.

    

    “Gross
      Profit”
means,
      on a per Contract basis, [redacted].

    

    “Guarantor”
means
      MDU Communications International, Inc. and any other Person that has guaranteed
      all or any part of the Obligations. 

    

    “Inventory”
means
      all of Borrower’s inventory as defined in the UCC, together with all of
      Borrower’s present and future inventory, including goods held for sale or lease
      or to be furnished under a contract of service and all of Borrower’s present and
      future raw materials, work in process, finished goods, shelving and racking
      upon
      which the inventory is stored and packing and shipping materials, wherever
      located, and any documents of title representing any of the above.

    

    “Lien”
means
      any
      security interest, security title, mortgage, deed to secure debt, deed of trust,
      lien, pledge, charge, conditional sale or other title retention agreement,
      or
      other encumbrance of any kind in respect of any property, including
      the interest of each lessor under any capitalized lease in, of or on any assets
      or properties of a Person, whether now owned or hereafter acquired and whether
      arising by agreement or operation of law.

    

    “Loan
      Documents”
means,
      collectively,
      this Agreement and any other agreements, instruments, certificates (including
      any Borrowing Base Certificate) or other documents entered into in connection
      with this Agreement, including collateral documents, letter of credit
      agreements, security agreements, pledges, guaranties, mortgages, deeds of trust,
      assignments and subordination agreements, warrant purchase agreements and
      registration rights agreements and any other agreement executed or delivered
      by
      any Obligor or any Affiliate of any Obligor pursuant hereto or in connection
      herewith.

    

    “Negotiable
      Collateral”
means
      all of Borrower’s present and future letters of credit, advises of credit,
      notes, drafts, instruments, and documents, including, without limitation, bills
      of lading, leases, and chattel paper, and Borrower’s books and records relating
      to any of the foregoing.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    “Obligations”
means
      all Revolving Loans and indebtedness, obligations and liabilities of Borrower
      to
      Lender and its Affiliates under this Agreement and the Loan Documents of every
      kind and description, direct or indirect, secured or unsecured, joint or
      several, absolute or contingent, due or to become due, including any overdrafts,
      whether for payment or performance, now existing or hereafter arising, whether
      presently contemplated or not, regardless of how the same arise, or by what
      instrument, agreement or book account they may be evidenced, or whether
      evidenced by any instrument, agreement or book account, including, but not
      limited to, all loans (including any loan by modification, renewal or
      extension), all indebtedness arising from any derivative transactions, all
      undertakings to take or refrain from taking any action, all indebtedness,
      liabilities or obligations owing from Borrower to others which Lender may have
      obtained by purchase, negotiation, discount, assignment or otherwise, and all
      interest, taxes, fees, charges, expenses and attorney’s fees (whether or not
      such attorney is a regularly salaried employee of Lender or any of its
      Affiliates) chargeable to Borrower or incurred by Lender under this Agreement
      or
      the Loan Documents.

    

    “Obligor”
means
      Borrower, any Guarantor, any validity guarantor or any other Person primarily
      or
      secondarily, directly or indirectly, liable on any of the
      Obligations.

    

    “Other
      Contracts”
means
      those Contracts to provide services to Customers that are not Bulk Contracts,
      Choice Contracts, or Competitive Contracts, but which are from a similar line
      or
      type of business or a new line or type of business.

    

    “Permitted
      Acquisitions”
shall
      mean [redacted].

    

    “Permitted
      Liens”
means
      (a) Liens or charges for current taxes, assessments or other governmental
      charges which are not delinquent or remain payable without any penalty, or
      the
      validity of which is contested in good faith by appropriate proceedings upon
      stay of execution of the enforcement thereof and for which appropriate reserves
      have been established in accordance with GAAP; (b) deposits or pledges to secure
      (i) statutory obligations, (ii) surety or appeal bonds, or (iii) bonds for
      release of attachment, stay of execution or injunction; (c) statutory Liens
      on
      property arising in the ordinary course of business which, in the aggregate,
      do
      not materially impair the use of such property or materially detract from the
      value of such property; (d) Liens existing on the Agreement Date and described
      on Item
      3
      of the Schedule;
      (e)
      Liens on Equipment securing all or part of the purchase price of such Equipment;
      provided,
      however,
      that
      (i) such Lien is created contemporaneously with or within 30 days after the
      acquisition of such Equipment, (ii) such Lien attaches only to the specific
      items of Equipment so acquired, and (iii) such Lien secures only the
      indebtedness incurred to acquire such Equipment; and (f) Liens in favor of
      Lender.

    

    “Person” means
      an
      individual, corporation, partnership, limited liability company, association,
      trust, unincorporated organization, government or any agency or political
      subdivision thereof, or any other entity.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    “Property”
means
      all multiple dwelling unit type properties, including but not limited to
      apartments, condominiums, coops, military bases, gated communities, town homes
      and dormitories owned by a Commercial Customer.

    

    “Revolving
      Loans”
means
      the total of all loans and advances made to Borrower hereunder and all interest
      fees and expense reimbursement obligations of Borrower relating thereto and
      shall include all of Revolving Loan Tranche A, Revolving Loan Tranche B,
      Revolving Loan Tranche C and Revolving Loan Tranche D.

    

    “Revolving
      Loan Tranche A”
shall
      mean all amounts outstanding under the Revolving Loans up to and including
      the
      first $5 million dollars of Revolving Loans.

    

    “Revolving
      Loan Tranche B”
shall
      mean all amounts outstanding under the Revolving Loans in excess of $5 million
      dollars but less than or equal to $10 million dollars.

    

    “Revolving
      Loan Tranche C”
shall
      mean all amounts outstanding under the Revolving Loans in excess of $10 million
      dollars but less than or equal to $15 million dollars.

    

    “Revolving
      Loan Tranche D”
shall
      mean all amounts outstanding under the Revolving Loans in excess of $15 million
      dollars but less than or equal to $20 million dollars.

    

    “Subordinated
      Debt”
means
      all of the indebtedness owed by Borrower to any other Person, the repayment
      of
      which is subordinated to the repayment of the Obligations pursuant to the terms
      of a subordination agreement reasonably acceptable to Lender.

    

    “Supplier
      Contracts”
means
      contracts or agreements with [redacted] and any other suppliers of satellite,
      cable or other service that Borrower resells as part of its business and all
      rights, title and interest in and payments under any of the
      forgoing.

    

    “UCC”
means
      the Uniform Commercial Code, as in effect from time to time, of the State of
      New
      York or of any other state the laws of which are required as a result thereof
      to
      be applied in connection with the issue of perfection of security interests;
      provided,
      that to
      the extent that the UCC is used to define any term herein or in any other
      documents and such term is defined differently in different Articles or
      Divisions of the UCC, the definition of such term contained in Article or
      Division 9 shall govern.

    

    Other
      Definitional Provisions.
      References to the “Schedule” or any “Section” or “Exhibit” refer to the Schedule
      or a section or exhibit, respectively, of this Agreement unless otherwise
      specifically provided. Any of the terms defined in Section 1
      may,
      unless the context otherwise requires, be used in the singular or the plural
      depending on the reference. In this Agreement: words importing any gender
      include the other genders; the words “including”, “includes” and “include” shall
      be deemed to be followed by the words “without limitation”; references to
      agreements and other contractual instruments shall be deemed to include
      subsequent amendments, assignments, and other modifications thereto, but only
      to
      the extent such amendments, assignments and other modifications are not
      prohibited by the terms of this Agreement; references to any Person includes
      their respective permitted successors and assigns or people succeeding to the
      relevant functions of such Persons; any and all terms which are defined in
      the
      UCC and are not defined herein shall be construed and defined in accordance
      with
      the definition of such terms under the UCC; all references to statutes and
      related regulations shall include any amendments of same and any successor
      statutes and regulations; and all references to time of day shall refer to
      Atlanta, New York time.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

    2. Borrowing.

     

    (a) Amount
      Available to Be Borrowed.
      (i)
      From time to time Borrower may request, and each Lender severally, agrees to
      lend, subject to the other terms and conditions of this Agreement, to Borrower
      up to an amount equal to their agreed upon portion of the Borrowing Base at
      any
      time. Borrowed amounts that are repaid may be reborrowed upon the terms and
      conditions of this Agreement.

     

    (ii) Borrower
      shall borrow at least $4,000,000 on the Agreement Date. Thereafter (and provided
      that no Default has occurred and sufficient availability exists under the
      Borrowing Base), Borrower must borrow an additional $1,000,000 no later than
      3
      months after the Agreement Date. 

     

    (iii)
       Provided
      that no Default has occurred and sufficient availability exists under the
      Borrowing Base, Borrower must maintain a balance of outstanding Revolving Loans
      of no less than $4,000,000 from the Agreement Date through the end of the first
      3 months after the Agreement Date, and of no less than $5,000,000 for months
      4
      through 12 after the Agreement Date, subject to Borrower’s right to prepay the
      Obligations in their entirety under section 2 (h) hereof.

     

    (iii) Not
      withstanding the forgoing, Borrower may not borrow amounts in excess of
      Revolving Loan Tranches A and B unless it meets the positive EBITDA Covenant
      set
      forth in Item 21(e) of the Schedule.

     

    (b) Standards.
      Agent
      will determine eligibility and the loan value of Collateral, Agent’s reasonable
      judgment, consistent with Agent’s experience, prudent business judgment and
      standards of commercial reasonableness applicable to asset-based credits and
      in
      good faith. Any Revolving Loans requested by Borrower and made by Lenders or
      at
      any time outstanding in excess of the Borrowing Base or any other limitation
      set
      forth in this Agreement will, nevertheless, be subject to the terms of this
      Agreement, will constitute Obligations for all purposes and be entitled to
      the
      benefits of the Collateral.

     

    (c) Persons
      Authorized to Request Loans.
      Borrower
      hereby authorizes and directs Agent to make Revolving Loan advances to or for
      the benefit of Borrower upon receipt of instructions from any of the persons
      listed on Item
      4
      of the Schedule.
      Neither
      Agent nor Lenders shall have any liability whatsoever to Borrower or any other
      Person for acting upon any such instructions which Agent, in good faith,
      believes were given by any such person, and Agent shall have no duty to inquire
      as to the propriety of any disbursement. Agent
      is
      hereby authorized to make the Revolving Loans provided for herein based on
      instructions received by facsimile, electronic mail, telephone or other method
      of communication from any of such persons. Although Agent shall make a
      reasonable effort to determine the person’s identity, Agent shall not be
      responsible for determining the authenticity of any such instructions, and
      Agent
      may act on the instructions of anyone it perceives to be one of the persons
      authorized to request loans hereunder. Agent
      shall have the right to accept the instructions of any of the foregoing persons
      unless and until Agent actually receives from Borrower (in accordance with
      the
      notice provisions of this Agreement) written notice of termination of the
      authority of that person. Borrower may change persons designated to give Agent
      borrowing instructions only by delivering to Agent written notice of such
      change. Borrower will ensure that each telephone instruction from any person
      designated in or pursuant to this paragraph shall be followed by written
      confirmation of the request for disbursement in such form as Agent makes
      available to Borrower from time to time for such purpose; provided,
      however, that Borrower’s failure to provide written confirmation of any
      telephonic instruction shall not invalidate such telephonic
      instruction.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

    (d) Application
      of Remittances.
      [redacted] 

     

    (e) Conditions
      to Obligation to Make Loans.
      Borrower acknowledges that Agent’s and each Lender’s obligation to make
      Revolving Loans to Borrower (or to issue or create or cause the issuance or
      creation by Lenders or its Affiliates of letters of credit or acceptances for
      Borrower’s account) is subject to the following terms and
      conditions:

     

    (i) Agent
      and
      each Lender shall
      have no obligation to make the initial Revolving Loan to Borrower or to extend
      any other financial accommodation to Borrower unless and until each condition
      precedent specified on Item
      6
      of the Schedule has
      been
      fulfilled to Agent’s and Lenders satisfaction.

     

    (ii) Agents
      and Lender’s
      obligation to make any loans to Borrower and extend other financial
      accommodations to Borrower (including the initial loans) is subject to the
      conditions that, as of the date of any such loan or other accommodation, no
      Default will have occurred and be continuing hereunder, there will have occurred
      no material adverse change in Borrower’s financial condition or operations or in
      Borrower’s business prospects as compared to the state of facts existing on the
      Agreement Date, and Borrower’s representations and warranties set forth in this
      Agreement (including any amendment, modification, supplement or extension
      hereof) will be true and correct as if made on and as of the date of each
      subsequent credit request. Each request for a borrowing or other financial
      accommodation by Borrower will be deemed to be a reaffirmation of each of
      Borrower’s warranties and representations hereunder.

     

    (f) Repayment
      of Loans.
      In the
      event of Default by Borrower or upon termination of this Agreement, Borrower
      will repay upon demand all of the Obligations. If no demand is earlier made,
      Borrower will repay all Obligations in full, without demand or notice, on the
      last day of the term of this Agreement (as provided in clause (g)
      below).
      If at any time for any reason, the aggregate outstanding principal amount of
      all
      Revolving Loans exceeds the Borrowing Base or any other limitation on the amount
      available to be borrowed hereunder, Borrower will immediately, without notice
      or
      demand, repay the outstanding principal amount of the loans, together with
      accrued and unpaid interest on the amount repaid, in an amount equal to such
      excess. Borrower shall make each payment required hereunder or under any other
      Loan Document without setoff, deduction or counterclaim.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (g) Maturity.
      This
      Agreement will continue in full force and effect from the Agreement Date until
      the termination date provided for in Item
      7
      of the Schedule.

     

    (h) Voluntary
      Termination.
      Borrower may terminate this Agreement at any time upon at least 30 days’ prior
      written notice to Lenders. On the date specified in such notice, termination
      will be effective, so long as Borrower has paid to Lenders, in same day funds,
      an amount equal to the aggregate principal amount of all Revolving Loans
      outstanding on such date, together with accrued interest thereon, the originals
      of all letters of credit and bankers acceptances, if any, issued, created or
      guaranteed by Agent or Lenders or any of their Affiliates for Borrower’s account
      have been returned for cancellation or have been presented and paid by Borrower
      or other arrangements satisfactory to Agent and Lenders have been made, all
      other Obligations outstanding and unpaid including any prepayment or other
      fees
      provided for hereunder have been paid in full in cash, and Borrower has provided
      Lenders and Agent an indemnification agreement satisfactory to Agent and Lenders
      with respect to returned and dishonored items and such other matters as Agent
      and Lenders shall reasonably require. 

     

    (i) Termination
      on Default.
      Notwithstanding the foregoing, should a Default occur and be continuing, Lenders
      will have the right to terminate this Agreement at any time without
      notice.

     

    (j) Survival.
      Notwithstanding termination, all the terms, conditions, and provisions hereof
      (including Agent’s and Lenders security interest in the Collateral, but
      excluding any obligations of Agent or Lenders hereunder) will continue to be
      fully operative until all Obligations have been paid, satisfied, and
      liquidated.

     

    (k) Payments
      as Loans.
      Borrower’s failure to pay any amount due from Borrower under this Agreement or
      any other Loan Document, whether for principal, interest, fees, premiums, costs,
      expenses or otherwise, shall be deemed to be a request by Borrower for a loan
      hereunder, and Agent on behalf of Lenders may charge Borrower’s loan account for
      any such amount. Additionally, if Lenders determine in their reasonable judgment
      that extensions of credit are necessary to protect the Collateral, Agent is
      hereby authorized to make such extensions of credit and charge them to
      Borrower’s loan account.

    

    3. Interest
      and Fees.

    

    (a) Interest
      on Loans.
      

     

    
      	(i)
                	
              Borrower
                will pay to Agent for the benefit of Lenders or, at Agent’s option, Agent
                may charge Borrower’s loan account with, interest on the average daily net
                principal amount of loans outstanding hereunder, calculated monthly
                and
                payable on the first day of each calendar month, at a rate (computed
                on
                the basis of the actual number of days elapsed over a year of 360
                days)
                equal to the Prime Rate plus the interest margin specified in Item
                8
                of the Schedule.
                The “Prime
                Rate”
                is, at any time, the rate of interest noted in The
                Wall Street Journal,
                Money Rates section, as the “Prime Rate” (currently defined as the base
                rate on corporate loans posted by at least 75% of the nation’s thirty (30)
                largest banks) but in no event shall the Prime Rate be less than
                7.75%. In
                the event that The
                Wall Street Journal
                quotes more than one rate, or a range of rates, as the Prime Rate,
                then
                the Prime Rate shall mean the average of the quoted rates. In the
                event
                that The
                Wall Street Journal
                ceases to publish a Prime Rate, then the Prime Rate shall be the
                average
                of the “prime” or “base” rates quoted by the three (3) largest U.S. money
                center commercial banks, as determined by Lender. The “Prime Rate” may not
                be the lowest or best rate at which Lender calculates interest or
                extends
                credit. Any change in the Prime Rate shall be effective for purposes
                of
                calculating interest hereunder as of the date of such change.
                

            

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    
      	(ii)  	
              Notwithstanding
                the foregoing, Borrower shall pay minimum interest hereunder of at
                least:
                

            

    

     

    
      	A.  	
              For
                the period beginning on the Agreement Date and continuing for 3 months
                thereafter, an amount equal to the applicable interest rate in effect
                hereunder based on Revolving Loans outstanding of no less than $4,000,000
                regardless of whether the actual balance of the Revolving Loan is
                less
                than $4,000,000.

            

    

     

    
      	B.  	
              For
                the period commending on a date that is 3 months after the Agreement
                Date
                and continuing through the first anniversary of the Agreement Date,
                an
                amount equal to the applicable interest rate in effect hereunder
                based on
                Revolving Loans outstanding of no less than $5,000,000 regardless
                of
                whether the actual balance of the Revolving Loan is less than $5,000,000.
                

            

    

     

    (b) Default
      Interest.
      To the
      extent permitted by law and without limiting any other right or remedy of Agent
      or Lenders hereunder, whenever there a Default has occurred and is continuing
      under this Agreement, the rate of interest on the unpaid principal balance
      of
      the Obligations shall, at the option of Lenders, be increased by adding the
      default margin identified on Item
      9
      of the Schedule
      to the
      interest rate otherwise in effect hereunder. Agent, on behalf of Lenders may
      charge such default interest rate retroactively beginning on the date the
      applicable Default first occurred or existed. Borrower acknowledges that: (i)
      such additional rate is a material inducement to Lenders to make the loans
      described herein; (ii) Lenders would not have made the loans in the absence
      of
      the agreement of Borrower to pay such additional rate; (iii) such additional
      rate represents compensation for increased risk to Lenders that the loans will
      not be repaid; and (iv) such rate is not a penalty and represents a reasonable
      estimate of (A) the cost to Lenders in allocating its resources (both personnel
      and financial) to the ongoing review, monitoring, administration and collection
      of the loans, and (B) compensation to Lenders for losses that are difficult
      to
      ascertain. In the event of termination of this Agreement by either party hereto
      when such charge has otherwise become payable, Lenders entitlement to this
      charge will continue until all Obligations are paid in full.

     

    (c) Fees.
      Borrower will pay to Agent on behalf of Lenders the fees set forth in
Item
      10
      of the Schedule.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    

    (d) No
      Usury.
      Borrower acknowledges that neither Agent nor Lenders intends to reserve, charge
      or collect interest on money borrowed under this Agreement at any rate in excess
      of the rates permitted by applicable law and that, should any interest rate
      provided for in this Agreement exceed the legally permissible rate(s), the
      rate
      will automatically be reduced to the maximum rate permitted under applicable
      law. If Agent or Lenders should collect any amount from Borrower which, if
      it
      were interest, would result in the interest rate charged hereunder exceeding
      the
      maximum rate permitted by applicable law, such amount will be applied to reduce
      principal of the Obligations or, if no Obligations remain outstanding, will
      be
      refunded to Borrower.

    

    (e) Monthly
      Statements. Agent
      will render a statement to Borrower each month for loans, payments, and other
      transactions pursuant to this Agreement, and such statement rendered by Agent
      will be binding upon Borrower unless Agent is notified in writing to the
      contrary within 60 days after the date such statement is rendered.

     

    4. Representations
      and Warranties of Borrower.

     

    (a) Authority,
      Compliance with Laws, Litigation, No Material Adverse Change,
      Etc.
      Borrower
      represents and warrants to Lender that: (i) Borrower’s exact legal name, type of
      organization, state of organization and organizational identification number
      are
      fully and accurately set forth on Item
      11
      of the Schedule,
      and
      Borrower is duly organized and validly existing under the laws of such state
      of
      organization; (ii) the execution, delivery, and performance of this Agreement
      and the other Loan Documents are within Borrower’s corporate powers, have been
      duly authorized, do not violate Borrower’s constituent documents, any law or
      regulation, including without limitation, any law or regulation relating to
      occupational health and safety or protection of the environment, applicable
      to
      Borrower, or any indenture, agreement, or undertaking to which Borrower is
      a
      party or by which Borrower or Borrower’s property is bound; (iii) this Agreement
      and the other Loan Documents to which Borrower is a party constitute valid,
      binding and enforceable obligations of Borrower in accordance with the terms
      hereof and thereof, except as enforceability may be limited by bankruptcy,
      insolvency, fraudulent conveyance, moratorium or other similar laws applicable
      to creditors’ rights generally or by generally applicable equitable principles
      affecting the enforcement of creditors’ rights; (iv) Borrower has no
      subsidiaries or other investments in other Persons, except as set forth on
      Item
      12
      of the Schedule;
      (v)
      Borrower is in compliance in all material respects with all laws, rules and
      regulations applicable to Borrower, including laws, rules or regulations
      concerning the environment, occupational health and safety and pensions or
      other
      employee benefits; (vi) except as set forth on Item
      13
      of the Schedule,
      there
      is no litigation or investigation pending against Borrower (or, so far as
      Borrower is aware, threatened) which, if it were decided adversely to Borrower,
      could reasonably be expected to have a material adverse effect on Borrower,
      Borrower’s financial or operational condition or Borrower’s prospects (taking
      into account any insurance coverage that has been acknowledged by the insurer);
      (vii) other than debt that is to be repaid from the proceeds of the first
      advance hereunder, Borrower is not indebted to any other Person for money
      borrowed nor has Borrower issued any guaranty of payment or performance by
      any
      other Person, except as set forth on Item
      14
      of the Schedule;
      (viii)
      since the date of the financial statements of Borrower most recently delivered
      to Lender, there has been no material adverse change in Borrower’s business,
      Borrower’s financial or operational condition or Borrower’s business prospects;
      and (ix) Borrower is, and after giving effect to the initial loans under this
      Agreement and the application of the proceeds of such loans Borrower will be,
      solvent and has sufficient revenues to pay Borrower’s obligations as they come
      due and adequate capital with which to conduct Borrower’s business.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    (b) Title
      to Assets, Other Collateral Matters.
      Borrower represents and warrants to Agent and Lenders that: (i) Borrower has
      good and marketable title to the Collateral, free of all Liens except for
      Permitted Liens, and no financing statement, mortgage, notice of Lien, deed
      of
      trust, security agreement, or any other agreement or instrument creating or
      giving notice of any Lien against any of the Collateral has been signed,
      authorized or delivered by Borrower, except in Agent’s (on behalf of Lenders)
      favor or with respect to Permitted Liens; (ii) with regard to each Aggregate
      Contract and any account related thereto, except as set forth on a Borrowing
      Base Certificate including such Aggregate Contract and any account related
      thereto: (A) the Customer or Supplier has accepted the Contract; and (B) all
      representations, warranties and covenants set forth herein relating to Aggregate
      Contracts are met; (iii) all Equipment is in good condition and state of repair,
      ordinary wear and tear excepted and is currently usable or saleable in the
      ordinary course of Borrower’s business; (iv) all Collateral meets applicable
      government standards; (v) in the past five years, except as set forth on
Item
      15
      of the Schedule
      (A)
      Borrower has not used any other legal, trade or fictitious names, and (B)
      Borrower has not been a party to any merger or purchased assets from any other
      Person other than in the ordinary course of business; and (vii) each of
      Borrower’s chief executive office and principal place of business, all
      Inventory, all Equipment and all other Collateral (other than the Inventory
      and
      Equipment installed at Customer locations in the ordinary course of business)
      is
      located at the addresses set forth on Item
      16
      of the Schedule and
      has
      not been located at any other location during the five year period prior to
      the
      Agreement Date.

     

    (c) Ownership
      Structure. Borrower
      represents and warrants that (i) Item
      17
      of the Schedule
      accurately describes the ownership of Borrower’s capital stock, membership
      interests or other equity interests, and (ii) the individual(s) listed on
Item
      17
      of the Schedule
      have,
      directly or indirectly, voting and managerial control of Guarantor.

     

    (d) Additional
      Representations.
      Borrower represents and warrants to Lender that: (i) Borrower is not engaged
      as
      one of Borrower’s principal activities in owning, carrying or financing the
      purchase or ownership by others of “margin stock” (as defined in Regulation U of
      the Board of Governors of the Federal Reserve System); (ii) Borrower owns no
      real property and leases no real property other than as listed on Item
      18
      of the Schedule;
      (iii) a
      true, correct and complete list of any warehousemen, processors, consignees
      or
      other bailees with possession or control of any Inventory (excluding Customers)
      is set forth on Item
      18
      of the Schedule;
      and
      (iv) a list and brief description of all bank accounts maintained by Borrower
      with any bank or financial institution is set forth on Item
      19
      of the Schedule.

     

    5. Collateral.

     

    (a) Grant
      of Security Interest.
      To
      induce Lenders to accept this Agreement and to make loans to Borrower from
      time
      to time pursuant to its terms, Borrower hereby grants to Agent on behalf of
      Lenders, a security interest in, and assigns, mortgages and pledges to Agent
      on
      behalf of Lenders, all of Borrower’s right, title and interest in and to all of
      Borrower’s property, whether real or personal, tangible or intangible, now owned
      or existing or hereafter acquired or arising, including all of the following
      (collectively, the “Collateral”):

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (i) all
      Accounts,
      Contracts, Inventory,
      Equipment, Goods, General Intangibles, Negotiable Collateral, Aggregate
      Contracts, Supplier Contracts, all Customer Contracts and all other Contracts
      or
      other agreements and all rights title and interests in and to and payments
      under
      any of the foregoing;

     

    (ii) all
      investment property, securities and securities accounts and financial assets,
      as
      well as all bank and depository accounts;

     

    (iii) all
      chattel paper (whether tangible or electronic) and contract rights;

     

    (iv) all
      guaranties, collateral, Liens on real or personal property, leases, letters
      of
      credit, letter-of-credit rights, supporting obligations, and all other rights,
      agreements, and property securing or relating to payment of Accounts or any
      other Collateral;

     

    (v) all
      documents, books and records relating to any Collateral or to Borrower’s
      business; 

     

    (vi) all
      other
      property of Borrower’s now or hereafter in the possession or control of Agent,
      Lender or any of Agent’s or Lender’s Affiliates (including cash, money, credits
      and balances of Borrower held by or on deposit with Agent or Lender or any
      Affiliate of Agent or Lenders); 

     

    (vii) all
      other
      assets of any Obligor in which Agent or Lender receives a security interest
      to
      secure all or part of the Obligations or which hereafter come into the
      possession, custody or control of Agent or Lenders or any Affiliate of Agent
      or
      Lender;

    

    (viii) all
      of
      Borrower’s commercial tort claims listed on (A) Item
      20
      of the Schedule (which
      Borrower represents and warrants is a true, accurate and complete list of all
      of
      Borrower’s commercial tort claims as of the Agreement Date) or (B) any other
      writing provided to Lender pursuant to Section
      7(f);
      and

    

    (ix) all
      proceeds and products of all of the foregoing in any form, including amounts
      payable under any policies of insurance insuring all or any of the foregoing
      against loss or damage, all parts, accessories, attachments, special tools,
      additions, replacements, substitutions and accessions to or for all or any
      of
      the foregoing, all condemnation or requisition payments with respect to all
      or
      any of the foregoing and all increases and profits received from all or any
      of
      the foregoing.

     

    (b) Obligations.
      Such
      grant, assignment, mortgage and transfer is made for the purpose of securing
      and
      the Collateral secures and will continue to secure all of the
      Obligations.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    6. Financial
      Covenants.
      Borrower shall comply with each of the financial covenants set forth on
Item
      21
      of the Schedule.

    

    7. Collateral
      Covenants.

    

    (a) Accounts.
      After a
      Default has occurred and is continuing, if Agent so elects, Agent will have
      the
      right at all times to settle, compromise, adjust, or litigate all material
      Customer disputes directly with the Customer or other complainant upon such
      terms and conditions as Agent deems advisable without incurring liability to
      Borrower for Agent’s performance of such acts. All of Borrower’s books and
      records concerning Accounts and a copy of Borrower’s general ledger will be
      maintained at the address of Borrower’s chief executive office set forth on
Item
      16
      of the Schedule.
      All
      Accounts included on any Borrowing Base Certificate will be, except as indicated
      on such Borrowing Base Certificate or subsequently in writing to Lender, bona
      fide and
      existing obligations of Customers arising out of the sale of goods and/or the
      rendering of services by Borrower in the ordinary course of Borrower’s business,
      owned by and owing to Borrower without defense, setoff or counterclaim, and
      will
      be subject to a perfected, first-priority security interest in Lender’s favor
      and will be free and clear of all other Liens except Permitted
      Liens.

     

    (b) Equipment.
      Borrower will maintain all Equipment used or useful in Borrower’s business in
      good and workable condition, ordinary wear and tear excepted, subject to a
      perfected, first-priority security interest in Agents on behalf of Lenders
      favor
      and free and clear of all other Liens (other than Permitted Liens), at one
      of
      the locations set forth on Item
      16
      of the Schedule
      as the
      current location of Borrower’s chief executive office or a current location of
      other Collateral, or at another location established in accordance with this
      Agreement.

     

    (c) Defense
      of Title.
      All
      Collateral will at all times be owned by Borrower, and Borrower will defend
      Borrower’s title to the Collateral against the claims of third parties. Borrower
      will at all times keep accurate and complete records of the
      Collateral.

     

    (d) Perfection;
      Further Assurances.
      Borrower will give Agent at least 30 days’ prior written notice of any change in
      Borrower’s name, state of organization or organizational identification number,
      any change in the location of Borrower’s principal place of business or chief
      executive office, any change in the locations of Borrower’s Contracts, Inventory
      or Equipment and any acquisition by Borrower of any interest in real property.
      Borrower will, at Borrower’s expense, promptly execute and deliver from time to
      time at Agent’s request and pay the costs of filing such additional financing
      statements, mortgages, or other evidences of Liens as may be necessary or
      desirable to perfect or continue perfection of Agents on behalf of Lenders
      security interest in Borrower’s property or, at Agent’s request, to create and
      perfect a Lien on newly acquired real property. Borrower will use all
      commercially reasonable efforts to obtain from any landlord, warehouseman,
      processor or other third party operator of premises on which any Collateral
      is
      located (other than Customers) an acceptable Lien waiver or subordination
      agreement in Agent’s on behalf of Lender’s favor with respect to such
      Collateral. All Collateral is and will continue to be, except as expressly
      consented to by Agent on behalf of Lenders, personal property and will not,
      by
      reason of attachment or connection to any realty, either become or be deemed
      to
      be a fixture or appurtenance to such realty and will at all times be readily
      removable without material damage to any realty, provided, however that Agent
      and Lenders acknowledge that certain Inventory or Equipment such as satellite
      dishes and other equipment installed in connection with the services Borrower
      provides under its Customer Contracts may be affixed to realty of the particular
      Customer. In the event that any Collateral, including proceeds, is evidenced
      by
      or consists of Negotiable Collateral, Borrower shall, immediately upon written
      request therefor from Agent, endorse and assign such Negotiable Collateral
      over
      to Lenders and deliver actual physical possession of the Negotiable Collateral
      to Agents on behalf of Lenders. Borrower shall at any time and from time to
      time
      use commercially reasonable efforts as Lenders may request for Agent on behalf
      of Lenders (i) to obtain an acknowledgment, in form and substance satisfactory
      to Agent on behalf of Lenders, of any bailee having possession of any of the
      Collateral that such bailee holds such Collateral for Lenders, (ii)
      to
      obtain “control” of any investment property, deposit accounts, letter-of-credit
      rights or chattel paper (including electronic chattel paper) in accordance
      with
      Article 9 of the UCC, with any agreements establishing control to be in form
      and
      substance satisfactory to Lenders, and (iii)
      otherwise to insure the continued perfection and priority of Lenders’ security
      interest in any of the Collateral and of the preservation of its rights therein.
      Borrower shall only keep funds on deposit in bank or other deposit accounts
      covered by deposit account control agreements except for those bank or deposit
      accounts which are either zero balance accounts or maintain minimal balances
      (i.e. less than $10,000 on an average basis). Lenders may, not more frequently
      than once per year at Borrower’s expense (unless a Default has occurred and is
      continuing), obtain an appraisal on some or all of the Collateral.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    

    (e) Insurance.
      Borrower will obtain and maintain in full force and effect insurance covering
      the Collateral against all risks to which the Collateral is exposed, including
      loss, damage, fire, theft, business interruption and all other such risks,
      in
      such amounts, with such companies, under such policies and in such form as
      will
      be reasonably satisfactory to Agent, which policies will name Agent on behalf
      of
      Lender as an additional insured and provide that loss thereunder will be payable
      to Agent as Agent on behalf of Lenders’ interests may appear upon a loss payee
      endorsement acceptable to Agent on behalf of Lender. All proceeds of any such
      insurance will be paid over to Agent directly, and Agent on behalf of Lender
      may
      apply such proceeds to payment of the Obligations, whether or not due, in such
      order of application as Agent on behalf of Lender determines, provided that
      so
      long as no Default has occurred and is continuing, Agent shall permit Borrower
      to apply such proceeds, in whole or in part, to the replacement, restoration
      or
      rebuilding of the lost or damaged property. Borrower will provide to Agent
      from
      time to time certificates showing such coverage in effect and, at Lender’s
      request, the underlying policies. Borrower shall obtain a life insurance policy
      covering [redacted]. Borrower shall execute such assignment of such as Lender
      may request and shall deliver the original of such policy to Lender.

     

    (f) Commercial
      Tort Claims.
      If
      Borrower shall at any time acquire a commercial tort claim, Borrower shall
      immediately notify Agent in a writing signed by Borrower of the details thereof
      and grant to Agent in such writing a security interest therein and in the
      proceeds thereof, all upon the terms of this Agreement, with such writing to
      be
      in form and substance satisfactory to Agent.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (g) Financing
      Statements.
      Agent
      on behalf of Lenders’ may at any time and from time to time file financing
      statements, continuation statements and amendments thereto that describe the
      Collateral as “all assets” of Borrower or words of similar effect and which
      contain any other information required by Part 5 of Article 9 of the UCC
      for the sufficiency or filing office acceptance of any financing statement,
      continuation statement or amendment, including whether Borrower is an
      organization, the type of organization and any organization identification
      number issued to Borrower. Borrower agrees to furnish any such information
      to
      Agent promptly upon request. Any such financing statements, continuation
      statements or amendments may be signed by Agent on behalf of Borrower or filed
      by Agent without the signature of Borrower and may be filed at any time in
      any
      jurisdiction. Borrower
      acknowledges that it is not authorized to file any financing statement or
      amendment or termination statement with respect to any financing statement
      naming Borrower as the debtor and Agent on behalf of Lenders’ as the secured
      party without the prior written consent of Agent, and Borrower agrees that
      it
      shall not do so without the prior written consent of Agent.

     

    (h) Customer
      Contracts Representations and Covenants.
      Borrower
      makes the following representations, warranties and covenants with respect
      to
      Customer Contracts (which shall be deemed to be continuing representations
      and
      warranties so long as any credit hereunder shall be available and until the
      Obligations have been paid in full, other than contingent indemnification
      obligations with respect to which there exists no claim):

    

    (i) Borrower
      represents and warrants that all Customer Contracts are and will be bona fide
      existing obligations created by the sale or lease of goods or the rendition
      of
      services to Customers in the ordinary and usual course of business and will
      be
      owed to Borrower without any known defenses, disputes, offsets or counterclaims,
      or any rights of return or cancellation without payment (except as disclosed
      to
      Agent in accordance with this Agreement and except for normal service-related
      credits accurately reflected in Borrower’s records); Borrower shall have
      received no notice of actual or imminent bankruptcy or insolvency of more than
      [redacted] of its Customers and, to the best of Borrower’s knowledge, each
      Customer shall be able to timely discharge all of its obligations to
      Borrower.

    

    (ii)
       Borrower
      represents and warrants it owns each Customer Contract and has not granted
      to
      any other Person any participation or similar interest therein, and none of
      Borrower’s rights under any Customer Contract are subject to any security
      interest, lien or encumbrance, other than the security interest in favor of
      Lenders created under this Agreement and other Permitted Liens.

    

    (iii) Borrower
      represents and warrants that the Collateral, including without limitation,
      all
      Customer Contracts, is subject to a prior security interest in favor of Lenders,
      

    

    (iv) Borrower
      represents and warrants that neither any Customer Contract nor any transaction
      entered into in connection therewith contravenes any applicable statute, law
      or
      regulation.

    

    (v) Borrower
      represents and warrants that each Customer Contract that has been duly
      authorized, executed and delivered by the Borrower and, to the best of
      Borrower’s knowledge, by the other parties thereto and is enforceable in
      accordance with its terms, except as enforceability may be limited by
      bankruptcy, insolvency or similar laws affecting creditors’ rights generally, or
      by principles of equity, and all amounts due to Borrower under any Customer
      Contract are payable without defense, offset, claim or
      counterclaim.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    

    (vi) Borrower
      represents and warrants that each Customer Contract correctly sets forth the
      terms of Borrower’s fees and other charges payable thereunder from the
      applicable Customer. Borrower shall provide Lenders with prompt notice of any
      material breach of, or nonpayment by or termination of more than [redacted]
      of
      Customer Contracts. 

    

    (vii) Borrower
      shall cause each Customer to remit all payments due under a Customer Contract
      or
      otherwise directly to the Lockbox provided that with respect to payments
      received directly by Borrower or its employees upon installation of equipment
      for any Consumer Customer, Borrower shall forward such payments directly to
      the
      Lockbox.

    

    (viii) Borrower
      acknowledges and agrees that Lenders are not undertaking any authority or
      responsibility with respect to any of the Customer Contracts entered into by
      Borrower, nor are Lenders assuming any risk with respect to any Customer
      Contract owned by or pledged to Borrower, nor are Lenders in any way involved
      in
      Borrower’s pricing, underwriting, installation or servicing or credit decisions
      with respect to any Customer Contract.

    

    (ix) Borrower
      represents and warrants that it has provided Lenders with true, correct and
      complete copies of each form of Customer Contracts, including Bulk Contract,
      Choice Contracts, Exclusive Contracts, Competitive Contracts and Consumer
      Service Agreements. Attached hereto as Exhibit
      C
      are a
      sample of each of the versions of forms of Customer Contracts used by Borrower,
      together with the forms of ancillary documents used by Borrower in connection
      therewith and Borrower will not make any changes to the form of its
      documentation with Customers without the prior written consent of Lenders,
      which
      consent shall not be unreasonably withheld. Borrower agrees that no Customer
      Contract shall be modified or amended in any material way without Lender’s prior
      written consent, which consent shall not be unreasonably withheld.

    

    (x) Borrower
      shall establish and maintain reasonable procedures (which may include random
      sampling) to verify that Customers have been receiving the goods and/or services
      that are the subject of the Customer Contracts.

     

    (xi) Borrower
      shall deliver to Lenders, as Lenders may from time to time require, Customer
      Contracts and other documentation as applicable to each Customer Contract.
      Absent such a request by Lenders, copies of all such documentation shall be
      held
      by Borrower as custodian for Lenders.

    

    (xii) At
      the
      time of inclusion of each Customer Contract in any Borrowing Base Certificate
      as
      an Eligible Customer Contract, such Customer Contract will be due and payable
      in
      accordance with the terms set forth in such Contract and on the back up schedule
      to the Borrowing Base.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    

    (xiii) To
      Borrower’s knowledge, no agreement exists permitting any return, deduction or
      discount (other than the discount stated on the invoice) by a Customer. Borrower
      will immediately notify Lenders in the event that a Customer alleges any dispute
      or claim with respect to more than [redacted] in monthly revenue of total
      Customer Contracts or of any other circumstances known to Borrower that may
      impair the validity or collectibility of more than [redacted] in monthly revenue
      of total Customer Contracts, provided, however that Borrower shall notify
      Lenders of any material dispute relating to its Bulk Contracts. After the
      occurrence of an Event of Default, Borrower shall not, without the prior consent
      of Lenders, adjust, settle or compromise the amount or payment of any Customer
      Contract, or release wholly or partly any Customer or obligor thereof, or allow
      any credit or discount thereon.

    

    (xiv)  Lenders
      shall have the right, at any time or times hereafter, to verify the validity,
      amount or any other matter relating to a Customer Contract, by mail in its
      name
      or by telephone in conjunction with or in the presence of Borrower or its
      designated employee.

    

    (xv) Lender
      agrees that, notwithstanding the foregoing, Customer Contracts acquired in
      a
      Permitted Acquisition do not have to meet the foregoing representations for
      a
      period of [redacted].

    

    (i) Supplier
      Contract Representations and Covenants.
      Borrower
      makes the following representations, warranties and covenants with respect
      to
      Supplier Contracts (which shall be deemed to be continuing representations
      and
      warranties so long as any credit hereunder shall be available and until the
      Obligations have been paid in full, other than contingent indemnification
      obligations with respect to which there exists no claim):

    

    (i) Borrower
      represents and warrants that all Supplier Contracts are and will be binding,
      bona fide existing agreements between the parties thereto, in full force and
      effect in accordance with their respective terms and not subject to any default
      or breach that with the passage of time could become a default, without any
      known defenses, disputes, offsets or counterclaims, or any rights of return
      or
      cancellation (except as disclosed to Agent); Borrower shall have received no
      notice of actual or imminent bankruptcy or insolvency of any Supplier and,
      to
      the best of Borrower’s knowledge, each Supplier shall be able to timely
      discharge all of its obligations under the Supplier Contracts.

    

    (ii)
       Borrower
      represents and warrants that it has not granted to any other Person any
      participation or similar interest therein, and none of Borrower’s rights under
      any Supplier Contract are subject to any security interest, lien or encumbrance,
      other than the security interest in favor of Lenders created under this
      Agreement.

    

    (iii) Borrower
      represents and warrants that the Collateral, including without limitation,
      all
      Supplier Contracts, is subject to a prior security interest in favor of Lenders,
      

    

    (iv) Borrower
      represents and warrants that neither any Supplier Contract nor any transaction
      entered into in connection therewith contravenes any applicable statute, law
      or
      regulation.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    

    (v) Borrower
      represents and warrants that each Supplier Contract that has been duly
      authorized, executed and delivered by the parties thereto and is enforceable
      in
      accordance with its terms, except as enforceability may be limited by
      bankruptcy, insolvency or similar laws affecting creditors’ rights generally, or
      by principles of equity.

    

    (vi) Borrower
      represents and warrants that each Supplier Contract, where applicable, correctly
      sets forth the terms of Borrower’s fees and other charges payable thereunder to
      the applicable Supplier by a Supplier Contract. Borrower shall provide Lenders
      with prompt notice of any material breach of, or nonpayment by or termination
      of
      any Supplier Contract. 

    

    (vii) Borrower
      shall cause each Supplier to remit all payments due under a Supplier Contract
      or
      otherwise directly to the Lockbox.

    

    (viii) Borrower
      acknowledges and agrees that Lenders are not undertaking any authority or
      responsibility with respect to any of the Supplier Contracts entered into by
      Borrower, nor are Lenders assuming any risk with respect to any Supplier
      Contract owned by or pledged to Borrower, nor are Lenders in any way involved
      in
      Borrower’s pricing, underwriting, installation or servicing or credit decisions
      with respect to any Supplier Contract.

    

    (ix) Borrower
      represents and warrants that it has provided Lenders with true, correct and
      complete copies of each Supplier Contract. Attached hereto as Exhibit
      D
      are all
      Supplier Contracts [redacted].

    

    (x) Borrower
      shall deliver to Lenders, as Lenders may from time to time require, Supplier
      Contracts and other documentation as applicable to each Supplier Contract.
      Absent such a request by Lenders, copies of all such documentation shall be
      held
      by Borrower as custodian for Lenders.

    

    (xi) Lenders
      shall have the right, at any time or times hereafter, to verify the validity,
      amount or any other matter relating to a Supplier Contract, by mail in its
      name
      or by telephone in conjunction with or in the presence of Borrower or its
      designated employee.

    

    (xv) All
      payments due under any Supplier Contract by the Supplier to Borrower have been
      made pursuant to such Supplier Contract.

    

    8. Negative
      Covenants.

     

    (a) [redacted]

     

    (b) No
      Debt or Liens; Taxes.
      Borrower will not obtain or attempt to obtain from any Person other than Agent
      on behalf of Lenders any loans, advances, or other financial accommodations
      or
      indebtedness of any kind, nor will Borrower enter into any direct or indirect
      guaranty of any obligation of another Person, other than (i) Subordinated Debt,
      (ii) indebtedness in connection with purchase money security interests
      constituting Permitted Liens (and capital leases) not to exceed, in aggregated
      principal amount, the amount set forth on Item
      22
      of the Schedule
      at any
      one time outstanding, (iii) performance and surety bonds in the ordinary course
      of business, and (iv) customary indebtedness arising in connection with deposit
      accounts. Borrower will not permit any of Borrower’s assets to be subject to any
      Lien other than Permitted Liens. Borrower shall pay when due (or before the
      expiration of any extension period) any tax or other assessment (including
      all
      required payments or deposits with respect to withholding taxes), and Borrower
      will, upon request by Agent, promptly furnish Agent with proof satisfactory
      to
      Agent that Borrower has made such payments and deposits.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    (c) No
      Distributions.
      Borrower will not retire, repurchase or redeem any of Borrower’s capital stock
      or other ownership interest in Borrower, nor declare or pay any dividend in
      cash
      or other property (other than additional shares of capital stock or additional
      ownership interests) to any owner or holder of Borrower’s shares or other
      ownership interest. Notwithstanding the foregoing, provided that i) so long
      as
      no Default exists hereunder or would be caused by any such transaction, and
      ii)
      sufficient availability exists under the Borrowing Base to effect such
      transaction, Borrower may acquire up to [redacted] of its capital stock or
      equity interests without any additional consent from Lenders. In addition,
      provided that i) so long as no Default exists hereunder or would be caused
      by
      any such transaction, and ii) sufficient availability exists under the Borrowing
      Base to effect such transaction, Borrower may request Lenders’ consent to
      purchases by Borrowers of more than [redacted] of its capital stock or equity
      interests, which consent shall not be unreasonably withheld.

     

    (d) No
      ERISA Liabilities.
      Borrower will make timely payments of all contributions required to meet the
      minimum funding standards for Borrower’s employee benefit plans subject to the
      Employee Retirement Income Security Act of 1974 (as amended, “ERISA”)
      and
      will promptly report to Lender the occurrence of any reportable event (as
      defined in ERISA) and any giving or receipt by Borrower of any governmental
      notice (other than routine requests for information) in respect of any such
      plan.

     

    (e) Transactions
      with Affiliates.
      Borrower will not engage in any transaction with any of Borrower’s officers,
      directors, employees, owners or other Affiliates, except for an “arms-length”
transaction on terms no less favorable to Borrower than would be granted to
      Borrower in a transaction with a Person who is not an Affiliate, which
      transaction shall be approved by Borrower’s disinterested directors and shall be
      disclosed in a timely manner to Lender prior to the consummation of the
      transaction.

     

    (f) Loans/Investments.
      Borrower will not make any loans or advances to or extend any credit to any
      Person except (i) the extension of trade credit in the ordinary course of
      business; and (ii) advances to employees (other than cashless exercise
      transactions) not to exceed an aggregate outstanding amount of [redacted] at
      any
      one time outstanding for all employees, without the consent of Lender. Borrower
      shall not purchase, acquire or otherwise invest in any Person except: (A)
      existing investments in Borrower’s subsidiaries described on Item
      12
      of the Schedule;
      (B)
      direct obligations of the United States of America maturing within one year
      from
      the acquisition thereof; (C) certificates of deposit issued by, or investment
      accounts in, banks or financial institutions having a net worth of not less
      than
      $50,000,000; (D) commercial paper rated A-1 by Standard & Poor’s Ratings
      Group or P-1 by Moody’s Investors Service, Inc. and (E) so long as no Default
      has occurred or is continuing, Permitted Acquisitions. Without limiting the
      generality of the foregoing, Borrower shall not create any new
      subsidiary.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

       

    

    (g) Capital
      Expenditures.
      Borrower shall not make or incur capital expenditures in excess of the amount
      set forth on Item
      21(a)
      of the Schedule
      during
      any fiscal year.

     

    (h) Compensation.
      Borrower shall not increase the total compensation paid to its officers or
      directors (or any of their relatives), including salaries, withdrawals, fees,
      bonuses, commissions, drawing accounts and other payments, whether directly
      or
      indirectly, in money or otherwise, during any fiscal year of Borrower during
      the
      term of this Agreement in an aggregate amount for all such officers and
      directors in excess of the limit specified in Item
      28
      of the Schedule.

     

    (i) Amendments
      of Documents.
      Borrower shall not materially amend or modify any note, instrument or agreement
      in connection with any Subordinated Debt without the prior written consent
      of
      Agent on behalf of Lenders, which consent shall not be unreasonably
      withheld.

     

    (j) Use
      of Proceeds.
      Borrower shall not use the proceeds of any Loans for any purpose other than
      to
      finance the development, build-out and installation of digital
      satellite television systems and broadband internet services to multiple
      dwelling units under contract to the Borrower or to acquire any such systems
      or
      service contracts, develop or acquire new services or lines of business in
      the
      multiple dwelling unit market, make permitted acquisitions of Borrower’s capital
      stock and fund general working capital needs of the Borrower.

     

    9. Reporting
      and Information.

     

    (a) Financial
      Statements.
      Borrower will submit to Agent as soon as available, and in any case not later
      than 30 days after the end of each month, a balance sheet, and a statement
      of
      profit and loss, in each case prepared in accordance with GAAP by Borrower’s
      chief financial or accounting officer as presenting fairly, in accordance with
      GAAP, Borrower’s financial condition as of the last day of such month and
      Borrower’s results of operations for such month and for the portion of
      Borrower’s fiscal year ending with such month. Borrower will also submit to
      Agent annual financial statements within 90 days after the end of each fiscal
      year, including a balance sheet, the related statement of profit and loss and
      stockholders’ equity and a statement of cash flows, in each case prepared in
      accordance with the requirements set forth on Item
      23
      of the Schedule.
      Borrower will also submit to Agent annually within 30 days after Borrower’s
      fiscal year end forecasted financial statements for the upcoming fiscal year,
      containing a projected balance sheet and profit and loss statement. Together
      with each monthly and annual financial statement, Borrower will deliver to
      Agent
      the certification of Borrower’s chief financial or accounting officer in the
      form of Exhibit
      B
      attached
      hereto to the effect that Borrower is in compliance with the terms and
      conditions of this Agreement, and setting forth in detail the calculation of
      all
      financial covenants, or, if Borrower is not in compliance, describing the nature
      of any noncompliance and the steps Borrower is taking or proposes to take to
      remedy the same. Borrower shall also submit a copy of each Federal income tax
      return filed by it within 5 business days of the date of such filing and copies
      of all filings made by Borrower with the Securities and Exchange Commission
      with
      5 business days of such filings.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    (b) Collateral
      Reports.
      Concurrent with the execution of this Agreement by Borrower and concurrent
      with
      each request for a loan pursuant to Section
      2(a),
      but no
      less frequently than as required by Item
      24
      of the Schedule,
      Borrower shall deliver to Agent a fully completed Borrowing Base Certificate
      certified by the Chief Executive Officer or Chief Financial Officer of Borrower
      as being true and correct. Concurrent with the delivery of each such Borrowing
      Base Certificate, Borrower shall provide a written report to Agent of all
      materially significant returns, disputes and claims, chargebacks, cancellations,
      together with sales and other reports relating to the Collateral as required
      by
      Agent. Borrower shall deliver to Agent within ten (10) days after the end of
      each month a report, reflecting the status as of the end of each month and
      certified by the Chief Executive Officer or Chief Financial Officer of Borrower
      as being true and correct, containing (i)
      a
      current detailed aging, by total and by Customer, of Borrower’s Accounts, and
      (ii)
      a
      current detailed aging, by total and by vendor, of Borrower’s accounts payable,
      all of which shall be set forth in a form and shall contain such information
      as
      is acceptable to Agent. Borrower shall deliver to Agent at least semiannually
      a
      list of locations of Inventory and the types and values of Inventory at each
      such location, in such form as Agent may require. At Agent’s request, Borrower
      shall deliver such information with respect to the Collateral, Borrower or
      Borrower’s business or financial condition as Agent may reasonably
      request.

    

    (c) Obligor
      Financials.
      At
      least once during each twelve-month period (or more frequently if Lenders shall
      so request), Borrower will cause each Obligor (other than Borrower) to deliver
      to Agent a financial statement for such Obligor as of a date satisfactory to
      Agent, in such form as Agent may reasonably request.

     

    (d) Other
      Information.
      Borrower will notify Agent as promptly as possible of any Default, any receipt
      by Borrower of notice from any governmental authority that Borrower has or
      may
      have violated any law, rule or regulation applicable to Borrower or the terms
      or
      conditions of any permit or license Borrower holds or is required to hold in
      connection with the conduct of Borrower’s business, any amendment to Borrower’s
      constituent documents and any change in Borrower’s management or ownership, and
      the commencement of any material litigation, claim or action against
      Borrower.

     

    10. Inspection
      Rights; Expenses; Etc.

     

    (a) Inspection.
      Agent
      and Lenders’ may examine and make copies of Borrower’s records, the Collateral
      and all other assets of Borrower or any portion thereof, wherever located,
      and
      may enter upon Borrower’s premises for such purposes, with reasonable prior
      notice, during business hours. Borrower will assist Agent and Lenders in
      whatever way as reasonably necessary to make each such examination. Agent may
      discuss Borrower’s financial condition with Borrower’s independent accountants
      without liability to Lenders or such accountants.

     

    (b) Performance
      by Lender.
      Agent
      on behalf of Lenders may, from time to time at Agents or Lender’s option,
      perform any obligation of Borrower’s hereunder which Borrower fails to perform
      and take any other action which Agent or Lenders deem necessary for the
      maintenance or preservation of any of the Collateral or Agents or Lenders’
interest therein, and Borrower agrees to reimburse Agent immediately on demand
      for all of Agent or Lenders’ expenses in connection with the foregoing
      (including, without being limited to, reasonable fees and expenses of legal
      counsel), together with interest thereon at the default rate of interest
      provided for herein from the date any such expense is incurred until reimbursed
      by Borrower.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    (c) Field
      Examinations; Inspections.
      Agent
      on behalf of Lender shall have the right without hindrance or delay to conduct
      field examinations to inspect the Collateral, Borrower’s books and records and
      all other aspects of Borrower’s business. Borrower agrees to pay for such
      examinations as more fully described on Item
      25
      of the Schedule.
      Agent
      on behalf of Lenders shall have full access to all records available to Borrower
      from any credit reporting service, bureau or similar service and shall have
      the
      right to examine and make copies of any such records. Agent and Lenders’ may
      exhibit a copy of this Agreement to such service and such service shall be
      entitled to rely on the provisions hereof in providing access to Agent on behalf
      of Lenders as provided herein.

    

    11. Rights
      of Setoff, Application of Payments, Etc.
      Agent on
      behalf of Lenders will be entitled to hold or set off all sums and all other
      property of Borrower at any time to Borrower’s credit or in Agent’s or Lender’s
      possession (or the possession of any of Agent or Lender’s Affiliates) by pledge
      or otherwise or upon or in which Agent or Lender may have a Lien, as security
      for any and all of the Obligations. Agent on behalf of Lender will have the
      right and is hereby irrevocably authorized and directed to charge to Borrower’s
      loan account the amounts of any and all such Obligations. Recourse to the
      Collateral or other security for the Obligations will not at any time be
      required and Borrower hereby waives any right of marshalling Borrower may have.
      Borrower’s obligation to pay or repay the Obligations is unconditional. Borrower
      agrees that Agent, on behalf of Lenders, may take such action with regard to
      the
      custody and after a Default has occurred and is continuing, collection of
      Collateral assigned to Agent on behalf Lenders as Agent may deem necessary.
      Borrower agrees that failure to take any action with regard to any given Account
      will not be unreasonable until and unless Agent or Lenders receives a written
      request for specific action from Borrower with regard thereto and fails to
      respond thereto within a commercially reasonable time. Borrower irrevocably
      waives the right to direct the application of any and all payments and
      collections at any time or times hereafter received by Agent from or on behalf
      of Borrower, and Borrower hereby irrevocably agrees that Agent or Lenders shall
      have the continuing exclusive right to apply and reapply any and all such
      payments and collections received at any time or times hereafter by Agent or
      Lender or its agent against the Obligations, in such manner and in such order
      as
      Lender may deem advisable.

     

    12. Attorney-in-Fact.
      Borrower hereby appoints and constitutes Agent on behalf of Lender as Borrower’s
      attorney-in-fact: (a) at any time, (i) to endorse Borrower’s name upon any
      notes, acceptances, checks, drafts, money orders, and other evidences of payment
      that come into Agent or Lenders’ possession and to deposit or otherwise collect
      the same; (ii) to send verifications of accounts to Customers; and (iii) to
      execute in Borrower’s name any financing statements, affidavits and notices with
      regard to any and all Lien rights; and (b) while any Default exists, (i) to
      receive, open, and dispose of all mail addressed to Borrower; (ii) to notify
      the
      postal authorities to change the address and delivery of mail addressed to
      Borrower to such address as Lender may designate; (iii) to sign Borrower’s name
      on any invoice or bill of lading relating to the Collateral, on drafts against
      Customers, and notices to Customers; (iv) to sign any agreement or certificate
      in connection with any insurance policy of Borrower (including any documentation
      to receive benefit payments due thereunder or to cancel such insurance policy
      and receive a refund of the unearned premium with respect thereto); and (v)
      to
      do all other acts and things necessary to carry out this Agreement. All acts
      of
      said attorney-in-fact are hereby authorized, ratified and approved, and said
      attorney-in-fact will not be liable for any errors or mistake of fact or law.
      This power, being coupled with an interest, is irrevocable while any of the
      Obligations remain unpaid or Lenders have any commitment to Borrower under
      this
      Agreement or otherwise. 

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    13. Defaults
      and Remedies.

     

    (a) Defaults.
      For
      purposes of this Agreement, “Default”
means
      the occurrence of any of the following events: (i) non-payment when due of
      any
      amount payable on any of the Obligations or breach of any covenant or failure
      to
      perform any agreement or failure to meet any of Borrower’s or any other
      Obligor’s obligations contained herein, in any other Loan Document or in any
      other agreement out of which any of the Obligations arose; (ii) non-payment
      when
      due of the premium on any insurance policy required to be maintained hereunder
      which continues for 10 days; (iii) any material statement, representation,
      or
      warranty made in writing in this Agreement, any other Loan Document or in any
      other writing or statement at any time furnished or made by Borrower or any
      other Obligor to Lender proves to have been untrue in any material respect
      as of
      the date furnished or made or deemed furnished or made; (iv) Borrower’s default
      under any other agreement for borrowed money or any other agreement involving
      more than the amount set forth on Item
      26
      of the Schedule
      which
      continues for more than 10 days; (v) suspension of the operation of Borrower’s
      present business; (vi) any Obligor becomes insolvent or unable to pay its debts
      as they mature, or admits in writing that it is insolvent or unable to pay
      its
      debts, makes an assignment for the benefit of creditors, makes a conveyance
      fraudulent as to creditors under any state or federal law, or a proceeding
      is
      instituted by or against any Obligor alleging that such Obligor is insolvent
      or
      unable to pay debts as they mature, or a petition under any provision of Title
      11 of the United States Code, as amended, is filed by or against any Obligor;
      (vii) entry of any judgment in excess of the amount set forth on Item
      27
      of the Schedule
      against
      any Obligor or creation, assertion, or filing of any judgment or tax Lien
      against the property of any Obligor, in each case which remains undischarged
      or
      unbonded for 10 days after such entry or filing; (viii) death of any Obligor
      who
      was a natural person, or dissolution, merger, or consolidation of any Obligor
      which is a corporation, partnership or limited liability company; (ix) transfer
      of a substantial part (determined by market value) of the property of Borrower;
      (x) sale, transfer or exchange, either directly or indirectly, of a controlling
      stock or equity ownership interest of any Obligor; (xi) termination,
      unenforceability or withdrawal of any guaranty or validity guaranty for the
      Obligations, or failure of any Obligor to perform any of its obligations under
      such a guaranty or validity guaranty or assertion by any Obligor that it has
      no
      liability or obligation under such a guaranty or validity guaranty; (xii)
      appointment of a receiver for the Collateral or for any other property in which
      Borrower has an interest to the extent the total amount of monthly revenue
      derived from the Properties or Customers for which a receiver has been appointed
      exceed [redacted] of monthly gross revenues; (xiii) seizure of any Collateral
      by
      any Person other than Lender; (xiv) a Change of Control (xv) the occurrence
      of
      any act, omission, event or circumstance which has or could reasonably be
      expected to have a materially adverse effect on Borrower or any other Obligor;
      (xvi) payment by Borrower on any Subordinated Debt in violation of the
      applicable subordination agreement; (xvii) the Pension Benefit Guaranty
      Corporation or the Department of Labor commences proceedings under ERISA to
      terminate any of Borrower’s employee pension benefit plans; (xviii) the loss of
      Bulk Contracts covering more than [redacted] net subscribers; or (xix) default
      or termination shall occur with respect to any Supplier
      Contract.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    

    (b) Remedies.
      If a
      Default occurs and is continuing, in each case without demand or notice to
      Borrower, any other Obligor or any other Person (unless such notice is expressly
      required hereunder or under applicable law):

     

    (i) Agent
      may
      and shall upon request of a Lender to terminate each such Lenders’ commitment,
      if any, to make loans or to extend other financial accommodations to Borrower,
      and may declare the entire principal amount of all loans outstanding hereunder,
      all interest thereon, any unpaid fees and all other Obligations of any kind
      or
      nature to be, and thereupon the same will immediately become, due and payable
      in
      full; and, in the event of a Default described under clause (vi) of Section
      13(a),
      such
      termination and acceleration shall automatically occur without any notice,
      demand or presentment of any kind. Borrower agrees to deposit with Agent on
      behalf of Lenders a cash sum equal to the amount of letters of credit and
      acceptances issued or guaranteed by Agent or Lenders or any Affiliate of Agent
      or Lender which have not been drawn upon or matured, which funds will be used
      to
      reimburse Agent or Lenders or such Affiliate of Agent or Lenders upon drawing
      under any letter of credit or maturity of any acceptance.

     

    (ii) Agent
      may, and upon request of Lenders, shall decrease the advance rates set forth
      in
      the definition of “Borrowing Base” in Lender’s discretion.

    

    (iii) Agent
      may, and upon request of Lenders, shall designee may notify Customers that
      the
      Accounts have been assigned to Lenders and that Lenders have a security interest
      therein, collect them directly, and charge the collection costs and expenses
      to
      Borrower’s loan account.

    

    (iv) Agent
      may, and upon request of Lenders shall (A) exercise any of its remedies under
      any other Loan Document, (B) apply any cash collateral to the Obligations
      (without limiting the foregoing, Lenders may instruct any bank or other
      financial institution holding any cash, certificate of deposit or other
      Collateral to pay over such Collateral to Agent on behalf of Lenders), and
      (C)
      draw on any letter of credit issued for the benefit of Agent on behalf of
      Lenders in connection with this Agreement or any other Loan Document and apply
      the proceeds thereof to the Obligations, in each case without demand or notice
      to Borrower or any other Person.

    

    (v) Agent
      may, and upon request of Lenders shall, make such payments and do such acts
      as
      Agent or Lenders consider necessary or reasonable to protect its security
      interest in the Collateral. Borrower authorizes Agent and Lenders to enter
      each
      premise where any Collateral is located, take and maintain possession of the
      Collateral, or any part of it, and to pay, purchase, contest or compromise
      any
      Lien which in Agent or Lenders opinion appears to be prior or superior to its
      security interest and to pay all expenses incurred in connection
      therewith.

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    

    (vi) As
      permitted by the UCC, Agent may, and upon request of Lenders shall, ship,
      reclaim, recover, store, finish, maintain, repair, continue to provides services
      required by the Contracts, prepare for sale, advertise for sale and sell the
      Collateral. Any
      such
      sale may be either a public or private sale, or both, by way of one or more
      contracts or transactions, for cash or on terms. It is not necessary that the
      Collateral be present at any such sale.

    

    (vii) Agent
      may, and upon request of Lenders shall, without regard to any waste, adequacy
      of
      the security or solvency of Borrower, apply for the appointment of a receiver
      of
      the Collateral, to which appointment Borrower hereby consents, whether or not
      foreclosure proceedings have been commenced hereunder or under any other Loan
      Document and whether or not a foreclosure sale has occurred.

    

    (viii) Reserved.

    

    (ix) Agent
      may, at Lender’s option, exercise any of the remedies available to Lender as a
      secured party under the Uniform Commercial Code as in effect in any applicable
      jurisdiction, or otherwise available to Agents or Lenders under applicable
      law.
      Borrower agrees, upon Default, to cease the sale or other disposition of the
      Collateral, except with Lenders’ prior written consent, and to assemble at
      Borrower’s expense all the Collateral at a convenient place acceptable to agent.
      Agent may charge to Borrower’s loan account and Borrower will pay Agent upon
      demand all costs and expenses, including reasonable attorneys’ fees (including
      fees of attorneys that are regular salaried employees of Agent or Lender or
      any
      of its Affiliates), in connection with: (A) the liquidation of any Collateral;
      (B) obtaining or enforcing payment of the Obligations; (C) the settlement,
      adjustment, compromise, or litigation of Customer disputes; or (D) the
      prosecution or defense of any action or proceeding either against Lender or
      against Borrower concerning any matter growing out of or in connection with
      this
      Agreement and/or any Collateral and/or any Obligations. If at any time Lender
      pays any state, city, local, federal, or other tax or levy attributable to
      the
      Collateral, Borrower will repay to Lender the amount of tax so paid by Agent.
      Borrower agrees that Agent may apply any proceeds from disposition of the
      Collateral first to satisfy obligations secured by Liens prior to Lender’s
      security interest. Borrower will remain liable and will pay on demand any
      deficiencies arising upon the liquidation of any Collateral held by
      Lender.

     

    (c) Notices.
      If any
      notice of intended disposition of the Collateral or of any other act by Agent
      is
      required by law and a specific time period is not stated therein, such notice,
      if given ten days before such disposition or act, in accordance with the
      provisions of Section
      15(a),
      will be
      deemed reasonably and properly given.

     

    (d) License.
      Borrower hereby grants to Agent on behalf of Lenders a license or other right
      to
      use, without charge, Borrower’s labels, patents, copyrights, rights of use of
      any name, trade secrets, trade names, trademarks and advertising matter, or
      any
      property of a similar nature, as it pertains to the Collateral, in completing
      production of, advertising for sale and selling any Collateral and Borrower’s
      rights under all licenses, and all franchise agreements shall inure to Agent
      for
      Lenders benefit.

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    

    (e) Remedies
      Cumulative.
      Agent’s
      and Lenders rights and remedies under this Agreement and all other Loan
      Documents shall be cumulative. Agent and Lenders shall have all other rights
      and
      remedies not inconsistent herewith as provided under the UCC, by law, or in
      equity. No exercise by Agent or Lenders of one right or remedy shall be deemed
      an election, and no waiver by Agent or Lender of any default on Borrower’s part
      shall be deemed a continuing waiver. No delay by Agent or Lender shall
      constitute a waiver, election or acquiescence by it.

    

    14. Indemnification.
      Borrower agrees to defend, indemnify, and hold harmless Agent, Lender and
      Agent’s and Lenders’ directors, officers, employees, Affiliates,
      representatives, attorneys and agents (each an “Indemnified
      Person”)
      from
      and against any and all penalties, fines, liabilities, damages, costs, or
      expenses of whatever kind or nature asserted against any such Indemnified
      Person, arising out of, or in any way related to this Agreement or any other
      Loan Document, or the transactions contemplated hereby or thereby, including
      by
      reason of the violation of any law or regulation relating to the protection
      of
      the environment or the presence, generation, disposal, release, or threatened
      release of any hazardous materials in connection with Borrower’s business on, at
      or from any property at any time owned or operated by Borrower, including,
      without limitation, reasonable attorneys’ and consultants’ fees, investigation
      and laboratory fees, court costs, and litigation expenses actually incurred.
      Without limiting the foregoing, Borrower represents and warrants that there
      has
      been no loan broker or investment banker other than Morgan Joseph involved
      in
      connection with the transactions contemplated hereby and Borrower agrees to
      indemnify and hold Lender harmless from any claim of compensation payable to
      any
      loan broker or investment banker in connection with the transactions
      contemplated hereby.

    

    15. General
      Provisions.

     

    (a) Notices.
      Except
      as specifically provided in this Agreement or in any of the other Loan
      Documents, all notices and communications hereunder and thereunder will be
      in
      writing or by telephone subsequently confirmed in writing. Notices in writing
      will be delivered personally or sent by overnight courier service, by certified
      or registered mail, postage pre-paid, or by facsimile transmission and will
      be
      deemed received, in the case of personal delivery, when delivered; in the case
      of overnight courier service, on the next Business Day after delivery to such
      service; in the case of mailing, on the fourth Business Day after mailing;
      and,
      in the case of facsimile transmission, upon transmittal if confirmed by the
      sender’s facsimile device; provided
      that in
      the case of notices to Agent and Lenders, Agent and Lenders will be charged
      with
      knowledge of the contents thereof only when such notice is actually received
      by
      Agent or Lenders. A telephonic notice to Agent as understood by Agent will
      be
      deemed to be the controlling and proper notice in the event of a discrepancy
      with or failure to receive a confirming written notice. Notices to Agent,
      Lenders or Borrower will be sent to the addresses set forth on Item
      29
      the Schedule,
      or any
      other address for either of Borrower, Lenders or Agent of which the other is
      notified by like notice. 

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    

    (b) No
      Waiver.
      No
      waiver hereunder will be valid unless in writing signed by Agent on behalf
      of
      Lenders and then only to the extent therein stated. No delay or failure by
      Agent
      on behalf of Lenders in the exercise of any right or remedy hereunder will
      operate as a waiver thereof or of Agent’s or Lender’s right to exercise any
      other right or remedy.

    

    (c) Time
      of Essence.
      Time is
      of the essence of this Agreement.

     

    (d) Severability.
      Wherever possible, each provision of this Agreement will be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement will be prohibited by or invalid under applicable law, such
      provision will be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provision or the remaining provisions
      of this Agreement. 

     

    (e) Successors
      and Assigns.
      Borrower’s, Agent’s and Lenders’ rights and obligations hereunder will inure to
      the benefit of Borrower’s, Agent’s and Lender’s respective successors and
      assigns, provided
      that
      Borrower acknowledges and agrees that without Agent’s or Lenders prior written
      consent, which may be withheld for any reason or no reason, Borrower may not
      assign Borrower’s rights or obligations or any part thereof hereunder to any
      other Person. Notwithstanding anything herein to the contrary, each Lender
      may,
      without the consent of Borrower, grant a security interest in, sell or assign,
      grant or sell participations or otherwise transfer all or any portion of its
      rights and obligations hereunder to one or more Persons.

     

    (f) Governing
      Law; Submission
      to Jurisdiction; Service; Etc.
      This
      Agreement and the other Loan Documents shall be governed by and construed in
      accordance with the substantive laws (other than conflict of law provisions
      and
      principles) of the State of New York. Borrower hereby consents to the
      non-exclusive jurisdiction of any United States Federal Court sitting in or
      with
      direct or indirect jurisdiction over the Southern District of New York or any
      New York state court located in New York County in any action, suit or other
      proceeding arising out of or relating to this Agreement or any of the other
      Loan
      Documents, and Borrower irrevocably agrees that all claims and demands in
      respect of any such action, suit or proceeding may be heard and determined
      in
      any such court and irrevocably waives any objection it may now or hereafter
      have
      as to the venue of any such action, suit or proceeding brought in any such
      court
      or that such court is an inconvenient forum. Borrower waives personal service
      of
      any and all process upon it and consents that all such service of process may
      be
      made by registered mail (return receipt requested) directed to Borrower at
      Borrower’s address for notices pursuant to this Agreement, and service so made
      shall be deemed to be completed five (5) days after the same shall have been
      so
      deposited in the United States mails. Nothing herein shall limit the right
      of
      Agent or Lenders to bring proceedings against Borrower or any of its Affiliates
      in the courts of any other jurisdiction. Any judicial proceeding commenced
      by
      Borrower against Agent or Lenders or any other holder of any Obligations, or
      any
      Affiliate of Agent or Lenders or any other holder of any Obligations, involving,
      directly or indirectly, any matter in any way arising out of, related to or
      connected with any Loan Document shall be brought only in a United States
      Federal Court sitting in or with direct jurisdiction over the Southern District
      of New York or any New York state court sitting in New York county. Nothing
      in
      this Agreement shall be deemed or operate to affect the right of the Agent
      or
      Lenders to serve legal process in any other manner permitted by law or to
      preclude the enforcement by Agent or Lenders of any judgment or order obtained
      in such forum or the taking of any action under this Agreement to enforce same
      in any other appropriate forum or jurisdiction.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    (g) Waiver
      of Jury Trial.
      TO THE
      FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER, AGENT AND LENDERS HEREBY
      IRREVOCABLY AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,
      PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE)
      ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, THE
      OBLIGATIONS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR EITHER
      PARTY’S ACTIONS IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT HEREOF OR
      THEREOF. EACH OF BORROWER AND LENDER ACKNOWLEDGES THAT SUCH WAIVER IS MADE
      WITH
      FULL KNOWLEDGE AND UNDERSTANDING OF THE NATURE OF THE RIGHTS AND BENEFITS WAIVED
      HEREBY, AND WITH THE BENEFIT OF ADVICE OF COUNSEL OF ITS CHOOSING.

     

    (h) Waiver
      of Hearing.
      BORROWER HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WAIVES ALL RIGHTS
      WHICH
      BORROWER HAS UNDER APPLICABLE LAW TO NOTICE AND TO A JUDICIAL HEARING PRIOR
      TO
      THE ISSUANCE OF A WRIT OF POSSESSION ENTITLING LENDER, ITS SUCCESSORS AND
      ASSIGNS TO POSSESSION OF THE COLLATERAL UPON A DEFAULT. WITHOUT LIMITING THE
      GENERALITY OF THE FOREGOING AND WITHOUT LIMITING ANY OTHER RIGHT WHICH LENDER
      MAY HAVE, BORROWER CONSENTS THAT, IF LENDER FILES A PETITION FOR AN IMMEDIATE
      WRIT OF POSSESSION UNDER APPLICABLE LAW AND THIS WAIVER OR A COPY HEREOF IS
      ALLEGED IN SUCH PETITION AND ATTACHED THERETO, THE COURT BEFORE WHICH SUCH
      PETITION IS FILED MAY DISPENSE WITH ALL RIGHTS AND PROCEDURES HEREIN WAIVED
      AND
      MAY ISSUE FORTHWITH AN IMMEDIATE WRIT OF POSSESSION, WITHOUT THE NECESSITY
      OF AN
      ACCOMPANYING BOND AS OTHERWISE REQUIRED BY ANY PROVISION OF APPLICABLE
      LAW.

    

    (i) Expenses.
      Borrower shall pay on demand all of Agent and Lenders’ reasonable costs and
      expenses in connection with underwriting and performing due diligence with
      respect to the transactions contemplated hereby and the preparation,
      reproduction, execution, delivery, and administration of this Agreement, and
      all
      such costs and expenses of Agent and Lenders in connection with the enforcement
      hereof, including the reasonable fees and out-of-pocket expenses of Agent and
      Lenders’ counsel, in each case whether incurred on, prior or subsequent to the
      Agreement Date. In addition, Borrower shall pay any and all stamp and other
      taxes and recording and filing fees payable in connection with the execution
      and
      delivery of all other instruments and documents to be delivered hereunder.
      Such
      amounts may be charged by Agent and Lenders to Borrower’s account as one or more
      loans hereunder. All provisions in this Agreement providing for the payment
      or
      reimbursement of Agent and Lenders’ attorneys’ fees and expenses include,
      without limitation, such fees and expenses incurred pursuant to or in connection
      with proceedings brought under 11 U.S.C., the Federal Bankruptcy
      Code.

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    (j) Execution
      in Counterparts; Execution by Fax; Waiver of Acceptance.
      This
      Agreement may be executed in separate counterparts, all of which shall
      constitute one and the same agreement. Delivery of an executed counterpart
      of
      this Agreement or any other Loan Document by facsimile or electronic mail shall
      be equally as effective as delivery of an original executed counterpart of
      this
      Agreement or such other Loan Document. Any party delivering an executed
      counterpart of this Agreement or any other Loan Document by facsimile or
      electronic mail shall deliver an original executed counterpart of this Agreement
      or such other Loan Document, but the failure to deliver an original executed
      counterpart shall not affect the validity, enforceability, and binding effect
      of
      this Agreement or such other Loan Document. To the fullest extent permitted
      by
      applicable law, Borrower waives notice of Lender’s acceptance of this Agreement
      and the other Loan Documents.

     

    (k) Entire
      Agreement.
      This
      Agreement and the other Loan Documents embody the entire agreement and
      understanding between Lender and Borrower and supersede all prior agreements
      and
      understandings relating to the subject matter hereof.

     

    16. Agent.

     

    (A)
       Appointment.
      Each
      Lender hereby designates and appoints First Capital as its agent under this
      Agreement and the Loan Documents, and each Lender hereby irrevocably authorizes
      Agent to take such action or to refrain from taking such action on its behalf
      under the provisions of this Agreement and the Loan Documents and to exercise
      such powers as are set forth herein or therein, together with such other powers
      as are reasonably incidental thereto. Agent is authorized and empowered to
      amend, modify, or waive any provisions of this Agreement or the other Loan
      Documents on behalf of Lenders. The provi-sions of this Section 16 are solely
      for the benefit of Agent and Lenders and neither Borrower nor any Loan Party
      shall have any rights as a third party beneficiary of any of the provisions
      hereof. In performing its functions and duties under this Agreement, Agent
      shall
      act solely as an administrative representative of Lenders and does not assume
      and shall not be deemed to have assumed any obligation toward or relationship
      of
      agency or trust with or for Lenders, Borrower or any Loan Party. Agent may
      perform any of its duties hereunder, or under the Loan Documents, by or through
      its agents or employees.

     

    (B) Reliance
      Agent
      shall be entitled to rely upon any written notices, statements, certificates,
      orders or other documents or any telephone message or other communication
      (in-cluding any writing, telex, telecopy or telegram) believed by it in good
      faith to be genuine and correct and to have been signed, sent or made by the
      proper Person, and with respect to all matters pertaining to this Agreement
      or
      any of the Loan Documents and its duties hereunder or thereunder, upon advice
      of
      counsel selected by it. Agent shall be entitled to rely upon the advice of
      legal
      counsel, independent accountants, and other experts selected by Agent in its
      sole discretion.

    

    (C) First
      Capital Individually.
      With
      respect to the Loans made by it, First Capital shall have and may exercise
      the
      same rights and powers hereunder and is subject to the same obligations and
      liabilities as and to the extent set forth herein for any other Lender. The
      terms "Lenders" or any similar terms shall, unless the context clearly otherwise
      indicates, include First Capital in its individual capacity as a Lender. First
      Capital may lend money to, and generally engage in any kind of banking, trust
      or
      other business with any Loan Party as if it were not acting as Agent pursuant
      hereto.

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    

    (D) Successor
      Agent

    

    (1) Resignation.
      Agent
      may resign from the performance of all its functions and duties hereunder at
      any
      time by giving at least thirty (30) Business Days' prior written notice to
      Borrower and the Lenders. Such resignation shall take effect upon the acceptance
      by a successor Agent of appointment pursuant to clause (2) below or as otherwise
      provided below.

    

    (2) Appointment
      of Successor
      Upon any
      such notice of resignation pursuant to clause (G)(1) above, Lenders shall,
      upon
      receipt of Borrower's prior consent which shall not unreasonably be withheld,
      appoint a successor Agent. If a successor Agent shall not have been so appointed
      within said thirty (30) Business Day period, the retiring Agent, upon notice
      to
      Borrower, shall then appoint a successor Agent who shall serve as Agent until
      such time, as Lenders, upon receipt of Borrower's prior written consent which
      shall not be unreasonably withheld, appoint a successor Agent as provided
      above.

    

    (3) Successor
      Agent
      Upon the
      acceptance of any appointment as Agent under the Loan Documents by a successor
      Agent, such successor Agent shall thereupon succeed to and become vested with
      all the rights, powers, privileges and duties of the retiring Agent, and the
      retiring Agent shall be discharged from its duties and obligations under the
      Loan Documents. 

    

    (E) Confirmation
      of Authority; Execution of Releases.
      Without
      in any manner limiting Agent's authority to act without any specific or further
      authorization or consent by Lenders, each Lender agrees to confirm in writing,
      upon request by Borrower, the authority to release any property covered by
      this
      Agreement or the Loan Documents. So long as no Event of Default is then
      continuing, upon receipt by Agent of confirmation from the requisite percentage
      of Lenders, of its authority to release any particular item or types of property
      covered by this Agreement or the Loan Documents, and upon at least five (5)
      Business Days prior written request by Borrower, Agent shall (and is hereby
      irrevocably authorized by Lenders to) execute such documents as may be necessary
      to evidence the release of the Liens granted to Agent for the benefit of Lenders
      herein or pursuant hereto upon such Collateral; provided,
      however,
      that
      (i) Agent shall not be required to execute any such document on terms which,
      in
      Agent's opinion, would expose Agent to liability or create any obligation or
      entail any consequence other than the release of such Liens without recourse
      or
      warranty, and (ii) such release shall not in any manner discharge, affect or
      impair the Obligations or any Liens upon (or obligations of any Loan Party,
      in
      respect of), all interests retained by any Loan Party, including, without
      limitation, the proceeds of any sale, all of which shall continue to constitute
      part of the property covered by this Agreement or the Loan
      Documents.

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, Borrower, Agent and Lenders have executed this Agreement as
      of
      the day and year first above written.

     

    
      	 	 	 
	 	MDU
              COMMUNICATIONS
              (USA) INC.
	 
 	 
 	 
 
	 	By:  	___________________________________
	 	Name:
              ______________________________
	 	Title: 
              ______________________________

    

     

    
      	 	 	 
	 	AGENT
              AND
              LENDER:
	 	 
	 	FCC, LLC, d/b/a FIRST CAPITAL
	 
 	 
 	 
 
	 	By:  	___________________________________
	 	Name:
              ______________________________
	 	Title: 
              _______________________________

    

     

    
      	 	 	 
	 	LENDER:
	 	 
	 	FULL CIRCLE FUNDING, LP
	 
 	 
 	 
 
	 	 	By
              its
              General Partner
	 	
            
	 	FULL
              CIRCLE FUNDING, LLC

    

     

    
      	 	By its Managing Members
	 	 
	 	By:
              _____________________________
	 	Name: Robert A. Blum
	 	Title: Managing Member
	 	 
	 	By:
              _____________________________
	 	Name: John E. Stuart
	 	Title: Managing
              Member

    

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    

    NOTARY
      JURAT FOR EXECUTION OF

    WRITTEN
      OBLIGATIONS TO PAY MONEY

    

    On
      this
      the ____ day of ______________, 2006, before me, the undersigned, a Notary
      Public in and for the State of _____________, County of _________________,
      ___________________________ personally appeared, who is personally known to
      me
      or proved to me on the basis of satisfactory evidence to be the
      _______________________________ of ___________________________, a
      _____________________ corporation, who, being by me first duly sworn, stated
      that:

    

    
      	1.  	
              He
                executed the foregoing Loan and Security Agreement on behalf of such
                corporation pursuant to its by-laws or a resolution of its board
                of
                directors, said execution taking place in the State of
                ______________________, County of ________________;
                and

            

    

    

    
      	2.  	
              He
                has this day delivered the foregoing Loan and Security Agreement
                to FCC,
                LLC, d/b/a FIRST CAPITAL, AND FULL CIRCLE FUNDING, L.P. at Oklahoma
                City,
                Oklahoma via overnight courier.

            

    

    

    
      	 	 	 
	 	Signature
              of
              Borrower’s Officer:
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
              _________________________________________________
	 	 

    

     

    Sworn
      to
      and subscribed before me this ___ day of _______________, 20__:

    

    __________________________________

    Notary
      Signature

    

    My
      Commission Expires:

    

    _________________________________

    

    [Affix
      Notarial Seal]

    

    

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

    

    AFFIDAVIT
      REGARDING DELIVERY

    

    On
      this
      the ____ day of _______________, 20__, before me, the undersigned, a Notary
      Public in and for the State of New York, County of _______________,
      _______________________ personally appeared, personally known to me or proved
      to
      me on the basis of satisfactory evidence to be the ________________________
      of
      FCC, LLC, d/b/a FIRST CAPITAL, who, being by me first duly sworn, stated that
      he/she has received delivery of the foregoing Loan and Security Agreement on
      behalf of FCC, LLC, d/b/a FIRST CAPITAL in the State of New York, County of
      New
      York. 

     

    
 

    
      	 	__________________________________
	 	Signature of Officer of FCC, LLC, d/b/a
              First
              Capital

    

     

     

    Sworn
      to
      and subscribed before me this ___ day of _______________, 20__:

    

    __________________________________

    Notary
      Signature

    

    My
      Commission Expires:

    

    _________________________________

    

    [Affix
      Notarial Seal]

    

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

    AFFIDAVIT
      REGARDING DELIVERY

    

    On
      this
      the ____ day of _______________, 20__, before me, the undersigned, a Notary
      Public in and for the State of New York, County of _______________,
      _______________________ personally appeared, personally known to me or proved
      to
      me on the basis of satisfactory evidence to be the ________________________
      of
      FULL CIRCLE FUNDING, LLC, the General Partner of FULL CIRCLE FUNDING, L.P.
      being
      by me first duly sworn, stated that he/she has received delivery of the
      foregoing Loan and Security Agreement on behalf of FULL CIRCLE FUNDING, LLC
      in
      the State of New York, County of New York. 

    
 

    
      
        	 	__________________________________
	 	Signature of Officer of Full Circle
                Funding,
                LLC

      

    

    

    

    Sworn
      to
      and subscribed before me this ___ day of _______________, 20__:

    

    __________________________________

    Notary
      Signature

    

    My
      Commission Expires:

    

    _________________________________

    

    [Affix
      Notarial Seal]

    

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

     

    SCHEDULE

    

    This
      Schedule is a part of the foregoing Loan and Security Agreement dated
as
      of
      this 11th
      day of
      September 2006 between MDU Communications (USA) Inc., a Washington corporation
      (“Borrower”),
      and
      Full Circle Funding, L.P. a Delaware limited partnership (“Full Circle”) and
      FCC, LLC, d/b/a FIRST CAPITAL, a Florida limited liability company
      (“First
      Capital”)
      in its
      capacity as a Lender and as Agent, (each of Full Circle and First Capital a
      “Lender” and collectively “Lenders”).

     

    

    1. Borrowing
      Base

    

    “Borrowing
      Base” means, at any time, an amount equal to: [redacted]

     

    2. Accounts
      Eligibility

    

    (a) Contract
      Aging: [redacted]

    

    (b) Concentration
      Limit:
      [redacted]

    

    3. Permitted
      Liens

     

    Existing
      Liens and financing statements:

    

      
        	Financing
                Statement Number,	
                 

              	 
	Jurisdiction
                and Filing Date	
                Secured
                  Party

              	
                Collateral

              
	
                2001-213-0091,
                  Washington Secretary of State 

              	
                Cisco
                  Systems 

              	
                Specific
                  Leased 

              
	
                August
                  1, 2001

              	 Capital
                Corporation 	Equipment
	 	 	
                 

              
	
                200610098101,
                  Washington Secretary of State

              	
                Leasing
                  Innovations, 

              	
                Specific
                  Leased

              
	
                
                  April
                    10, 2006

                

              	Incorporated	
                Equipment

              
	
                 

              	 	 
	
                200610819935,
                  Washington Secretary of State

              	
                Leasing
                  Innovations 

              	
                Specific
                  Leased 

              
	
                
                  April
                    17, 2006

                

              	
                Innovations

              	
                Equipment

              
	
                 

              	 	 
	
                200616794007,
                  Washington Secretary of State

              	
                Leasing
                  Innovations 

              	
                Specific
                  Leased

              
	
                
                  June
                    15, 2006

                

              	
                Innovations

              	
                Equipment

              
	
                 

              	 	 
	
                200620598721,
                  Washington Secretary of State

              	
                Citicorp
                  Leasing, Inc.

              	Specific
                Leased
                
	
                July,
                  24, 2006

              	 	
                Equipment

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Persons
      Authorized to Request Loans

     

    
      	Name:	Title:
	Sheldon Nelson	President and Chief Executive
              Officer
	Carmen Ragusa	Vice President
	Brad Holmstrom	Secretary and Legal
              Counsel

    

      

    5. Collection
      Days: 2
      Business Days

    

    6. Conditions
      To Initial Loans

    

    Items
      listed below are required to be delivered, in form and substance satisfactory
      to
      Agent in its sole discretion, as a condition to Lender’s obligation to fund the
      initial loan or extend the first financial accommodation to Borrower under
      this
      Agreement.

     

    Certified
      copy of articles/certificate of incorporation 

    

    Bylaws

    

    Secretary’s
      certificate as to constituent documents, bylaws, authorizing action (e.g.,
      corporate resolutions) and incumbency of officers/status and specimen signatures
      of authorized signers

    

    Good
      Standing Certificate (state of organization and all other states in which
      Borrower is qualified to do business)

    

    Lien
      search results

    

    Payoff
      letter from any lender whose loans are to be refinanced from proceeds of loans
      made under this Agreement

    

    Lien
      termination documents from existing lender, any other creditor whose filings
      are
      to be terminated, etc.

    

    Landlord,
      warehouseman or other bailee waivers

    

    Collateral
      Assignment of all Customer Contracts 

    

    Agreement
      with any third party billing and collecting agents

    

    Lockbox,
      blocked account or agency account agreement(s)

    

    Financial
      statements

    

    Borrowing
      Base Certificate, together with schedules of Accounts and Inventory and other
      supporting documentation, in each case as of a date acceptable to
      Lender

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    Financing
      statements

    

    Officer’s
      certificate as to representations, warranties and no defaults

    

    Solvency
      certificates

    

    Opinion
      letter of Borrower’s legal counsel

    

    Warrant
      Agreement

    

    Registration
      Rights Agreement

    

    Assignment
      of a Life Insurance Policy on [redacted] 

    

    All
      other
      items described on the Schedule of Closing Documents previously delivered by
      Lender or Lender’s counsel to Borrower or Borrower’s counsel

    

    7. Termination
      Date

    This
      Agreement will terminate on the third anniversary of the Agreement Date,
      provided, however, that the term shall automatically be extended for an
      additional month at the end of each month during the first twenty-four (24)
      month period starting on the Agreement Date up to a maximum term of sixty (60)
      months from the Agreement Date.

    

    8. Interest
      Margin: Tranche
      A
      Revolving Loan: Prime Rate plus 410 basis points (4.10%);

     

    
      	 	Tranche B Revolving Loan: Prime Rate
              plus
              3%;
	 	 
	 	Tranche C Revolving Loan: Prime Rate
              plus 2%;
              and
	 	 
	 	Tranche D Revolving Loan: Prime Rate
              plus
              1%.

    

    

    9. Default
      Margin: 3%

    

    10. Fees

    a. Upon
      execution of this Agreement, in consideration of Lender’s structuring, approving
      and committing to this Agreement, and for services by Lenders in connection
      with
      Lenders continuing administration of the Revolving Loan, but without affecting
      Borrower’s obligation to reimburse Lenders for costs associated with this
      Agreement and the transactions contemplated hereby as provided elsewhere in
      this
      Agreement, Borrower agrees to pay to Agent for the benefit of Lenders
      Closing/Annual Fees as follows:

    

    Closing
      Fee of 3.5% of Revolving Tranche A shall be due and payable at closing,
      regardless of whether all of Tranche A is borrowed at Closing.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    Closing/Annual
      Fee of 1% shall be and payable on the entire amount of Revolving Loan Tranche
      B
      (i.e. on the full $5 Million of such Tranche) at such time as the outstanding
      principal balance of the Revolving Loan exceeds $5,000,000 and on each
      anniversary of the date the outstanding principal balance first exceeded $5
      Million.

    Closing/Annual
      Fee of 1% shall be and payable on the entire amount of Revolving Loan Tranche
      C
      (i.e. on the full $5 Million of such Tranche) at such time as the outstanding
      principal balance of the Revolving Loan exceeds $10,000,000, and on each
      anniversary of the date the outstanding principal balance first exceeded $10
      Million.

    Closing/Annual
      Fee of 1% shall be and payable on the entire amount of Revolving Loan Tranche
      D
      (i.e. on the full $5 Million of such Tranche) at such time as the outstanding
      principal balance of the Revolving Loan exceeds $15,000,000, and on each
      anniversary of the date the outstanding principal balance first exceeded $15
      Million.

    

    Any
      Annual Fee shall be prorated to the extent there are less than 12 months
      remaining in the original term at the time such Annual Fee is charged, based
      on
      the number of months remaining in the original term to 12 months.

    

    b. In
      consideration of the maintenance of Lender’s commitment hereunder, Borrower will
      pay Agent for the benefit of Lenders a fee as set forth below on the daily
      average unused portion of Lender’s commitment to make Revolving Loans hereunder,
      payable monthly in arrears on the first day of each calendar month, beginning
      on
      the first such date following the Agreement Date.

    

    An
      unused
      line fee on Revolving Loan Tranche A of one-half of one percent (.50%) per
      annum, charged monthly in arrears, on the average unused amount of Tranche
      A.
      This fee shall be effective at Closing. 

    An
      Unused
      line fee on Revolving Loan Tranche B (i.e. on the full $5 Million of such
      Tranche) of one half of one percent (.50%) per annum, charged monthly in
      arrears, on the average unused amount of Tranche B at such time as the
      outstanding principal balance of the Revolving Loan exceeds $5,000,000 and
      continuing thereafter regardless of whether the balance on the Loan drops below
      $5 Million. 

    An
      Unused
      line fee on Revolving Loan Tranche C (i.e. on the full $5 Million of such
      Tranche) of one third of one percent (.33%) per annum, charged monthly in
      arrears, on the average unused amount of Tranche C at such time as the
      outstanding principal balance of the Revolving Loan exceeds $10,000,000 and
      continuing thereafter regardless of whether the balance on the Loan drops below
      $10 Million. 

    An
      Unused
      line fee on Revolving Loan Tranche D (i.e. on the full $5 Million of such
      Tranche) of one quarter of one percent (.25%) per annum, charged monthly in
      arrears, on the average unused amount of Tranche D at such time as the
      outstanding principal balance of the Revolving Loan exceeds $15,000,000 and
      continuing thereafter regardless of whether the balance on the Loan drops below
      $15 Million.

    

    c. In
      the
      event that this Agreement is terminated for any reason Borrower will pay to
      Agent for the benefit of Lender on or prior to the effective date of such
      termination an early termination fee as follows: The Borrower may elect to
      prepay the Revolving Loan in whole upon 30 days’ notice to Lender. Such
      prepayment shall be at the following pre-payment prices as a percentage of
      pre-paid principal:

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Months
                0-12 after Closing Date  104%

              Months
                13-24 after Closing Date 102%

              Months
                25-33 after Closing Date 101%

              (No
                fee shall apply to Prepayments made within the last 3 months of the
                original term or during any automatic extension
                period.)

            

    

    

    All
      of
      the foregoing fees constitute compensation to Agent for the benefit of Lender
      for services rendered and are not interest or a charge for the use of money.
      Each installment of such fees shall be fully earned when due and payable and
      shall not be subject to refund or rebate.

    

    11. Organizational
      Information

    Exact
      Legal Name of Borrower: MDU Communications (USA) Inc.

    State
      of
      Organization: Washington

    Type
      of
      Organization: Corporation

    Organizational
      Identification Number: 52-2233408

    

    12. Subsidiaries
      and Investments in Other Persons:
      None

    

    13. Pending
      Litigation:
      None

    

    14. Existing
      Debt and Guarantees:
      

    Loan
      from
      Wachovia Bank in the amount of $200,000 secured by deposit accounts maintained
      at Wachovia

    

    Lease
      obligations to Leasing Innovations secured by the liens identified in Item
      3 of
      the Schedule in principal amount of [redacted]

    

    Lease
      obligations to Citicorp Leasing Inc. secured by the liens identified in Item
      3
      of the Schedule in principal amount of [redacted]

    

    Lease
      obligations to Cisco Systems Capital Corporation secured by the liens identified
      in Item 3 of the Schedule in principal amount of [redacted]

    

    15. Prior
      Legal Names:
      None

    

    Prior
      or Current Trade or Fictitious Names:
      MDU
      Communications

     

    
      	Mergers and Acquisitions:	Digital Solutions LLC, a Connecticut
              limited
              liability company
	 	Direct Satellite, Inc., an Illinois
              corporation
	 	PCM Acquisitions Corp., a Delaware
              corporation

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    16. Locations
      of Offices and Collateral:
      60
      Commerce Way, Totowa, New Jersey 07512

    
      	 	
              2275
                SW 66th
                Terrace, Suite 1, Davie, Florida, 33317

              400
                N. May Street, Unit 207, Chicago, Illinois, 60622

              5535
                Wilkins Court, Rockville, Maryland, 20850

              20955
                Pathfinder Road, Suite 100, Diamond Bar, California
                91765

            

    

    
    

     

    Current
      Chief Executive Office:
      60
      Commerce Way, Totowa, New Jersey 07512

    

    Other
      Locations of Chief Executive Office in past five years:
      None

    

    Other
      Current Collateral Locations:
      None

    

    17. Ownership
      Structure:
      100%
      of
      stock and equity interest owned by MDU Communications International,
      Inc.

    

    18. Owned
      Real Property: None

    

    Leased
      Real Property (including legal name of landlord and monthly
      rent):

    

    [redacted]

    

    Warehousemen,
      processors, consignees or other bailees in possession or control of any
      Inventory (include name, address where Inventory is stored and description
      of
      the arrangement):
      None

    

    19. Bank
      Accounts: [redacted]

     

    20. Commercial
      Tort Claims:

    None

    

    21. Financial
      Covenants:
      

    

    (a) Capital
      expenditures (excluding those incurred in connection with the installation
      or
      development and build-out of digital satellite television systems and broadband
      internet services to multiple dwelling units under Contract to the Borrower),
      shall not exceed [redacted].

     

    (b) Ratio
      of
      Subscriber Acquisition Costs to Monthly Subscriber Revenue/ROI:
      [redacted]

     

    (c) Minimum
      gross monthly revenue of $900,000 during the first 12 months following the
      Closing Date; $1,200,000 for months 13 through 24 following the Closing Date;
      and [redacted] for each month thereafter. 

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

    (d) Minimum
      Number of Subscribers prior to Borrower drawing Loans in the specified Tranche
      as follows:

     

    
      	Tranche A	Minimum 40,000 Subscribers
	Tranche B	Minimum 45,000 Subscribers
	Tranche C	Minimum 50,000 Subscribers
	Tranche D 	Minimum 55,000
              Subscribers

    

    

    Such
      minimum must be met while any balance remains outstanding under the applicable
      Tranche.

    

    (e)
       Prior
      to
      funding any advances under Tranche C or Tranche D, Borrower’s EBITDA must
      be
      positive. [redacted]

     

    (f)
      [redacted]

    

    22. Permitted
      Purchase Money Debt: [redacted]

    

    23. Annual
      Financial Statements: To
      be
      audited and certified without qualification by an independent practicing
      certified public accountant acceptable to Lender.

    

    24. Borrowing
      Base Certificates: Borrower
      shall deliver to Lender a Borrowing Base Certificate no less frequently than
      monthly (by the fifth Business Day of each month and determined as of the close
      of business on the last Business Day of the immediately preceding
      month).

    

    25. Field
      Examinations:  Borrower
      agrees to pay to Agent its customary fees and disbursements relating to field
      examinations of the Collateral, Borrower, Borrower’s business and Borrower’s
      books and records, which, as of the Agreement Date, are $850 per examiner per
      day plus all of the out-of-pocket examination costs and travel and other
      expenses incurred by such examiners.

    

    26. Cross
      Default Amount: [redacted]

    

    27. Judgment
      Cross Default Amount: [redacted]

    

    28. Maximum
      Annual Increase in Officers’ Compensation:  [redacted]

    

    29. Notice
      Addresses:

     

    
      	If to Borrower: 	MDU Communications (USA), Inc.
	 	
              60
                Commerce Way, Unit D

              Totowa,
                New Jersey, 07512

              Attn.:President

              Facsimile
                No.: 973-237-9243

            

    

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

    
       

      
        	If to Agent: 	FCC, LLC, d/b/a First Capital
	 	
                
                  3520
                    N. W. 58th Street

                  Oklahoma
                    City, Ok 73112

                  Attention:
                    John Curtis

                  Facsimile
                    No.: (405) 917-9660

                

              

      

    

    
      
         

        
          	With a copy to:	FCC, LLC d/b/a First Capital
	 	
                  
                    125
                      Town Park Drive, Suite 190

                    Kennesaw,
                      Georgia, 30144

                    Attention:
                      Kimberly Finch Withrow

                    Facsimile
                      No.: (678)
                      594-5901

                  

                

        

      

    

    
      
         

        
          	If to Lenders:	FCC, LLC, d/b/a First Capital
	 	
                  
                    3520
                      N. W. 58th Street

                    Oklahoma
                      City, Ok 73112

                    Attention:
                      John Curtis

                    Facsimile
                      No.: (405) 917-9660

                  

                

        

         

      

    

    
      
        	 	
                Full
                  Circle Funding, LP

                1
                  Dock Street

                Suite
                  502

                Stamford
                  CT 06902

                Attn.:
                  Robert A. Blum 

                Facsimile
                  No.: 203
                  286-1445

              
	 

      

       

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

    

    EXHIBIT
      A

    

    [redacted]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    
`

    EXHIBIT
      B

    

    [redacted]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]