Document:

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                                                                    Exhibit 10.5

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                               SERVICING AGREEMENT

                                  by and among

                      HPSC GLOUCESTER FUNDING 2003-1 LLC I
                                       and
                     HPSC GLOUCESTER FUNDING 2003-1 LLC II,
                                   as Issuers,

                                   HPSC, INC.,
                           as Servicer and Originator,

                           BNY MIDWEST TRUST COMPANY,
                              as Indenture Trustee

                                       and

                            BNY ASSET SOLUTIONS LLC,
                               as Back-Up Servicer

                           Dated as of March 31, 2003

                        Asset Backed Notes, Series 2003-1

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                                TABLE OF CONTENTS

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ARTICLE 1 DEFINITIONS......................................................................................1

     Section 1.01  Definitions.............................................................................1
     Section 1.02  Interpretive............................................................................1

ARTICLE 2 REPRESENTATIONS, WARRANTIES AND COVENANTS........................................................2

     Section 2.01  Representations, Warranties and Covenants of the Originator.............................2
     Section 2.02  Representations, Warranties and Covenants of the Servicer...............................3
     Section 2.03  Representations and Warranties of the Back-up Servicer..................................8

ARTICLE 3 PERFECTION OF TRANSFER...........................................................................9

     Section 3.01  Filing; Custody of Files; Contract Files................................................9
     Section 3.02  Name Change or Relocation...............................................................9
     Section 3.03  Chief Executive Offices.................................................................9
     Section 3.04  Costs and Expenses.....................................................................10
     Section 3.05  Power of Attorney......................................................................10

ARTICLE 4 ADMINISTRATION AND SERVICING OF CONTRACTS.......................................................10

     Section 4.01  Acceptance of Appointment; Duties of Servicer..........................................10
     Section 4.02  Collection of Payments.................................................................13
     Section 4.03  Servicer Advances......................................................................14
     Section 4.04  Realization Upon Defaulted Contracts...................................................15
     Section 4.05  Maintenance of Insurance Policies......................................................16
     Section 4.06  Reserved...............................................................................17
     Section 4.07  Servicing Compensation; Payment of Certain Expenses and Custodian Fee by Servicer......17
     Section 4.08  Monthly Statement......................................................................17
     Section 4.09  Annual Certificates as to Compliance...................................................18
     Section 4.10  Annual Independent Public Accountant's Reports.........................................18
     Section 4.11  Access to Certain Documentation and Information Regarding the Pledged Property.........19
     Section 4.12  Financial Statements...................................................................20
     Section 4.13  Performance of Back-up Servicer's Duties...............................................20
     Section 4.14  Indemnity for Liability Claims.........................................................22

ARTICLE 5 THE SERVICER....................................................................................22

     Section 5.01  Liability of Servicer; Indemnities.....................................................22
     Section 5.02  Merger, Consolidation, or Assumption of the Obligations of Servicer....................23
     Section 5.03  Limitation on Liability of Servicer and Others.........................................24
     Section 5.04  Servicer Not to Resign.................................................................24

ARTICLE 6 SERVICING TERMINATION...........................................................................24
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                                TABLE OF CONTENTS
                                   (continued)

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     Section 6.01  Events of Servicing Termination........................................................24
     Section 6.02  Resignation of Servicer; Back-up Servicer; Appointment of
                   Successor; Limitations on Liability....................................................27
     Section 6.03  Notification to Noteholders............................................................29
     Section 6.04  Waiver of Past Defaults................................................................29
     Section 6.05  Effects of Termination of Servicer.....................................................29

ARTICLE 7 MISCELLANEOUS PROVISIONS........................................................................30

     Section 7.01  Amendment..............................................................................30
     Section 7.02  Counterparts...........................................................................31
     Section 7.03  Governing Law..........................................................................31
     Section 7.04  Waiver of Jury Trial...................................................................31
     Section 7.05  Notices................................................................................31
     Section 7.06  Severability of Provisions.............................................................32
     Section 7.07  Third Party Beneficiaries..............................................................32
     Section 7.08  Assignment.............................................................................32
     Section 7.09  Binding Effect.........................................................................32
     Section 7.10  Survival of Agreement..................................................................32
     Section 7.11  Captions...............................................................................32
     Section 7.12  Exhibits...............................................................................32
     Section 7.13  Calculations...........................................................................32
     Section 7.14  No Proceedings.........................................................................33
     Section 7.15  Rights of Indenture Trustee............................................................33
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This SERVICING AGREEMENT, dated as of March 31, 2003 (this "AGREEMENT") is made
by and among HPSC, Inc. ("HPSC"), a Delaware corporation, as servicer (the
"SERVICER"), HPSC, as originator (the "ORIGINATOR"), HPSC Gloucester Funding
2003-1 LLC I and HPSC Gloucester Funding 2003-1 LLC II, each a Delaware limited
liability company, as issuers (each an "ISSUER" and collectively, the
"ISSUERS"), BNY Midwest Trust Company, an Illinois corporation, not in its
individual capacity but solely as indenture trustee (the "INDENTURE TRUSTEE")
and BNY Asset Solutions LLC, a Delaware limited liability company, as back-up
servicer (the "BACK-UP SERVICER").

                                   WITNESSETH:

WHEREAS, the Issuers have entered into an Indenture, dated as of the date
hereof, with the Servicer, the Originator and the Indenture Trustee pursuant to
which the Issuers have pledged the Pledged Property to the Indenture Trustee for
the benefit of the Noteholders; and

WHEREAS, it is contemplated that following such pledge the Servicer will service
the Receivables pursuant to this Agreement for the benefit of the Noteholders;
and

WHEREAS, each of the Servicer, the Originator and the Issuers agrees that all of
the respective representations, warranties, covenants and agreements made by it
herein shall also be for the benefit of the Indenture Trustee and the
Noteholders;

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

                                    ARTICLE 1

                                   DEFINITIONS

     Section 1.01  DEFINITIONS. Capitalized terms used and not defined herein
shall have the meanings specified in Annex A hereto.

     Section 1.02  INTERPRETIVE

For purposes of this Agreement except as otherwise expressly provided or unless
the context otherwise requires:

             (a)   the terms defined in this Agreement have the meanings
assigned to them in this Agreement and include the plural as well as the
singular, and the use of any gender herein shall be deemed to include the other
gender;

             (b)   accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP as in effect on the date
hereof;

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             (c)   references herein to "Articles", "Sections", "Subsections",
"Paragraphs" and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subdivisions of
this Agreement;

             (d)   a reference to a Subsection without further reference to a
Section is a reference to such Subsection as contained in the same Section in
which the reference appears, and this rule shall also apply to Paragraphs and
other subdivisions;

             (e)   the words "herein", "hereof", "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
provision; and

             (f)   the term "include" or "including" shall mean without
limitation by reason of enumeration.

                                    ARTICLE 2

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

     Section 2.01  REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE ORIGINATOR.
The Originator hereby makes the following representations, warranties and
covenants to the Indenture Trustee, the Servicer, the Issuers and the
Noteholders, on which the Indenture Trustee relies in accepting the Pledged
Property in trust and authenticating the Notes and on which the Noteholders have
relied and will rely in purchasing the Notes. Such representations, warranties
and covenants are made as of the Closing Date, as of each Subsequent Transfer
Date and as of each Substitute Transfer Date and shall survive the pledge,
transfer, and assignment of any Pledged Property to the Indenture Trustee for
the benefit of the Noteholders.

             (a)   ORGANIZATION AND GOOD STANDING. The Originator is a
corporation duly organized, validly existing in good standing under the laws of
the State of Delaware, has the power to own its assets and to transact the
business in which it is presently engaged, and had at all relevant times and now
has the power, authority and legal right to perform its obligations hereunder
and under the other Transaction Documents to which it is a party.

             (b)   DUE QUALIFICATION. The Originator is duly qualified to do
business as a foreign corporation and is in good standing, and has obtained all
necessary licenses and approvals, in all jurisdictions where the failure to be
so qualified and in good standing or obtain such licenses or approvals would
have a material adverse effect on the Originator's business and operations or on
the performance of its obligations under the Transaction Documents to which it
is a party.

             (c)   AUTHORIZATION. The Originator has the power, authority and
legal right to execute, deliver and perform this Agreement and the other
Transaction Documents to which it is a party, and the execution, delivery and
performance of this Agreement and the other Transaction Documents to which it is
a party have been duly authorized by the Originator by all necessary corporate
action.

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             (d)   BINDING OBLIGATION. Each of this Agreement and the other
Transaction Documents to which it is a party, assuming due authorization,
execution and delivery by the other parties thereto, constitutes a legal, valid
and binding obligation of the Originator enforceable against the Originator in
accordance with its terms, except that (A) such enforcement may be subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws
(whether statutory, regulatory or decisional) now or hereafter in effect
relating to creditors' rights generally and (B) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to
certain equitable defenses and to the discretion of the court before which any
proceeding therefore may be brought, whether in a proceeding at law or in
equity.

             (e)   NO VIOLATION. The consummation by the Originator of the
transactions contemplated by this Agreement and the other Transaction Documents
to which it is a party and the fulfillment of the terms hereof and thereof will
not conflict with, result in any breach of any of the terms and provisions of,
or constitute (with or without notice, lapse of time or both) a default under,
the articles of incorporation or by-laws of the Originator or any material
indenture, agreement, mortgage, deed of trust or other instrument to which the
Originator is a party or by which it is bound, or result in the creation or
imposition of any Lien upon any of its material properties pursuant to the terms
of any such indenture, agreement, mortgage, deed of trust or other instrument,
other than as contemplated in any Transaction Document, or violate any law or
any order, rule or regulation applicable to the Originator of any court or of
any Governmental Authority having jurisdiction over the Originator or any of its
properties.

             (f)   NO PROCEEDINGS. There are no Proceedings or investigations to
which the Originator or any of its Affiliates, is a party pending or, to the
best of the Originator's knowledge, threatened before any court, regulatory
body, administrative agency or other tribunal or governmental instrumentality
(A) asserting the invalidity of this Agreement, the other Transaction Documents
or the Notes, (B) seeking to prevent the issuance of the Notes or the
consummation of any of the transactions contemplated by this Agreement or the
other Transaction Documents or (C) seeking any determination or ruling that is
reasonably likely to materially and adversely affect the performance by the
Originator of its obligations under, or the validity or enforceability of, this
Agreement or the other Transaction Documents to which it is a party.

             (g)   APPROVALS. All approvals, authorizations, consents, orders or
other actions of any Person or court required on the part of the Originator in
connection with the execution and delivery of this Agreement and the other
Transaction Documents to which it is a party have been or will be taken or
obtained on or prior to the Closing Date.

     Section 2.02  REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SERVICER.
The Servicer hereby makes the following representations, warranties and
covenants to the Indenture Trustee, the Originator, the Issuers and the
Noteholders, on which the Indenture Trustee relies in accepting the Pledged
Property in trust and authenticating the Notes and on which the Noteholders have
relied or will rely in purchasing the Notes. Such representations, warranties
and covenants are made as of the Closing Date, as of each Subsequent Transfer
Date and as of each Substitute Transfer Date and shall survive the pledge,
transfer, and assignment of any Pledged Property to the Indenture Trustee for
the benefit of the Noteholders.

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             (a)   The Servicer represents and warrants as to itself:

                   (i)     ORGANIZATION AND GOOD STANDING. The Servicer is a
corporation duly organized, validly existing in good standing under the laws of
the State of Delaware, has the power to own its assets and to transact the
business in which it is presently engaged, and had at all relevant times and now
has the power, authority and legal right to service the Contracts and perform
its obligations hereunder and under the other Transaction Documents to which it
is a party.

                   (ii)    DUE QUALIFICATION. The Servicer is duly qualified to
do business as a foreign corporation and is in good standing, and has obtained
all necessary licenses and approvals, in all jurisdictions where the failure to
be so qualified and in good standing or obtain such licenses or approvals would
have a material adverse effect on the Servicer's business and operations or the
servicing of the Contracts as required by this Agreement or the performance of
its obligations under the Transaction Documents to which it is a party.

                   (iii)   AUTHORIZATION. The Servicer has the power, authority
and legal right to execute, deliver and perform this Agreement and the other
Transaction Documents to which it is a party, and the execution, delivery and
performance of this Agreement and the other Transaction Documents to which it is
a party have been duly authorized by the Servicer by all necessary corporate
action.

                   (iv)    BINDING OBLIGATION. Each of this Agreement and the
other Transaction Documents to which it is a party, assuming due authorization,
execution and delivery by the other parties thereto, constitutes a legal, valid
and binding obligation of the Servicer, enforceable against the Servicer in
accordance with its terms, except that (A) such enforcement may be subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws
(whether statutory, regulatory or decisional) now or hereafter in effect
relating to creditors' rights generally and (B) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to
certain equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought, whether in a proceeding at law or in equity.

                   (v)     NO VIOLATION. The consummation by the Servicer of the
transactions contemplated by this Agreement and the other Transaction Documents
to which it is a party and the fulfillment of the terms hereof and thereof will
not conflict with, result in any breach of any of the terms and provisions of,
or constitute (with or without notice, lapse of time or both) a default under,
the articles of incorporation or by-laws of the Servicer, or any material
indenture, agreement, mortgage, deed of trust or other instrument to which the
Servicer is a party or by which it is bound, or result in the creation or
imposition of any Lien upon any of its material properties pursuant to the terms
of any such indenture, agreement, mortgage, deed of trust or other instrument,
other than as contemplated in any Transaction Document, or violate any law or
any order, rule or regulation applicable to the Servicer of any court or of any
Governmental Authority having jurisdiction over the Servicer or any of its
properties.

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                   (vi)    NO PROCEEDINGS. There are no Proceedings or
investigations to which the Servicer, or any of the Servicer's Affiliates, is a
party pending or, to the best of the Servicer's knowledge, threatened before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality (A) asserting the invalidity of this Agreement or the other
Transaction Documents or the Notes, (B) seeking to prevent the issuance of the
Notes or the consummation of any of the transactions contemplated by this
Agreement or the other Transaction Documents or (C) seeking any determination or
ruling that is reasonably likely to materially and adversely affect the
performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement or the other Transaction Documents to which it
is a party.

                   (vii)   APPROVALS. All approvals, authorizations, consents,
orders or other actions of any Person or court required on the part of the
Servicer in connection with the execution and delivery of this Agreement and the
other Transaction Documents to which it is a party have been or will be taken or
obtained on or prior to the Closing Date.

                   (viii)  EVENT OF SERVICING TERMINATION. No Event of Servicing
Termination has occurred and no condition exists, which, upon the issuance of
the Notes, would constitute an Event of Servicing Termination.

             (b)   The Servicer additionally covenants as follows as to the
Pledged Property:

                   (i)     CONTRACT MANAGEMENT SYSTEM. The Servicer will, at its
own cost and expense, (A) retain the Contract Management System, or an
alternative system of equal capability, used by the Servicer as a master record
of the Contracts and (B) mark the Contract Management System to the effect that
the Contracts listed thereon have been conveyed to the Issuers pursuant to the
Receivables Transfer Agreement and pledged by the Issuers to the Indenture
Trustee for the benefit of the Noteholders pursuant to the Indenture.

                   (ii)    COMPLIANCE WITH LAW. The Servicer will comply, in all
material respects, with all acts, rules, regulations, orders, decrees and
directions of any Governmental Authority applicable to the Contracts and the
Equipment or any part thereof; PROVIDED, HOWEVER, that the Servicer may contest
any act, regulation, order, decree or direction in any reasonable manner which
shall not materially and adversely affect the rights of the Noteholders in the
Contracts, the Equipment and any other collateral securing the Contracts; and
PROVIDED, FURTHER, that such contests shall be in good faith by appropriate
proceedings and as to which adequate reserves in accordance with GAAP have been
established, but only so long as such proceedings shall not individually or in
the aggregate subject the Indenture Trustee or any Noteholder to any civil or
criminal liability or involve any risk of loss or decline in the value of any
collateral.

                   (iii)   PRESERVATION OF SECURITY INTEREST. The Servicer shall
execute and file such continuation statements and any other documents necessary
to fully preserve and protect the interest of the Indenture Trustee on behalf of
the Noteholders in and to the Pledged Property.

                   (iv)    OBLIGATIONS WITH RESPECT TO CONTRACTS. The Servicer
will use commercially reasonable efforts to duly fulfill, and comply in all
material respects with, all

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obligations on the part of the "lessor" or "lender," as applicable, to be
fulfilled under or in connection with each Contract, and the Servicer will do
nothing to impair the rights of the Indenture Trustee in the Contracts, the
Equipment and any other Collateral; PROVIDED, HOWEVER, that any successor
Servicer will be obligated to use commercially reasonable efforts to duly
fulfill and comply with the obligations on the part of the "lessor" or "lender,"
as applicable, under each Contract only to the extent that any out-of-pocket
costs associated with such compliance or fulfillment are reimbursed.

                   (v)     NOTIFICATION. The Servicer agrees to notify the
Issuers, the Noteholders and the Indenture Trustee in writing as soon as
practicable, but in no event later than three Business Days after the earlier of
the Servicer's discovery or its receipt of notice thereof, of a material breach
of any representation or warranty contained herein, or the failure of the
Servicer to perform its duties hereunder in any material respect.

                   (vi)    LIEN IN FORCE. The Servicer shall not release or
assign any Lien in favor of the Indenture Trustee on any item of Equipment
related to or Contract or any other Collateral in whole or in part, except in
accordance with its Servicing Standard or as otherwise provided herein. The
Servicer shall use commercially reasonable efforts to remove, or to cause the
related Obligor to remove, any Liens on the Pledged Property other than the Lien
created pursuant to the Indenture or other liens which do not constitute Adverse
Claims.

                   (vii)   FULFILL OBLIGATIONS. The Servicer will in all
material respects duly fulfill all obligations on the Servicer's part to be
fulfilled under or in connection with the Pledged Property. The Servicer will
not amend, rescind, cancel or modify any Contract or term or provision thereof,
except in accordance with the Servicing Standard or as contemplated herein, and
the Servicer will not do anything that would otherwise impair the rights of the
Noteholders in the Pledged Property.

                   (viii)  PRESERVATION OF THE EQUIPMENT AND COLLATERAL. As more
specifically set forth in this Agreement, in performing its servicing duties
hereunder, the Servicer shall, in accordance with the Servicing Standard,
collect all payments required to be made by the Obligors under the Contracts,
enforce all material rights of the Issuers under the Contracts and defend the
Equipment and all other Collateral against all Persons, claims and demands
whatsoever. The Servicer shall not assign, sell, pledge, or exchange, or in any
way encumber or otherwise dispose of the Equipment or any other Collateral,
except as permitted under this Agreement and the Indenture.

                   (ix)    NOTICE OF EVENT OF SERVICING TERMINATION; OTHER
REQUESTED INFORMATION. The Servicer shall deliver to the Issuers, the Back-up
Servicer, each Noteholder, a Responsible Officer of the Indenture Trustee and
the Rating Agencies:

                           (1)    NOTICE OF EVENT OF SERVICING TERMINATION.
Immediately upon becoming aware of the existence of any condition or event which
constitutes an Event of Servicing Termination or an Event of Default, or any
event which, with the lapse of time and/or the giving of notice, would
constitute an Event of Servicing Termination or an Event of Default and which,
in each case, has not been waived in writing by the Majority Holders, a written
notice

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describing its nature and period of existence and, in the case of an Event of
Servicing Termination, the action the Servicer is taking or proposes to take
with respect thereto; and

                           (2)    REQUESTED INFORMATION. With reasonable
promptness, any other data and information in the possession of the Servicer
which may be reasonably requested from time to time, including any information
required to be made available at any time to any prospective transferee of any
Notes in order to satisfy the requirements of Rule 144A under the Securities
Act, provided that, if the Back-up Servicer becomes a successor Servicer, such
successor Servicer may attach any reasonable disclaimer to any information
provided to the Servicer by any third party.

                   (x)     DELIVERY OF CONTRACTS FILES. Upon an Event of
Servicing Termination, the Servicer shall, at its expense, promptly deliver to
the Custodian any Contract Files, or portion thereof, as applicable, that may
have been delivered to the Servicer pursuant to Section 3.01(b) hereof. Upon the
request of the Custodian or the Indenture Trustee, the Servicer shall return any
Contract Files to the Custodian within two Business Days of such request.

                   (xi)    PREPAYMENTS. The Servicer may accept Prepayments in
part or in full; PROVIDED, that (1) in the event of a Prepayment in full, the
Servicer may consent to such Prepayment only if an amount not less than the
Prepayment Amount is deposited in the Collection Account and (2) in the event of
a partial Prepayment, the Servicer may consent to such partial Prepayment only
if (x) following such partial Prepayment there are no delinquent amounts then
due from the related Obligor and (y) such partial Prepayment will not reduce the
Discounted Contract Balance of the related Contract by more than an amount equal
to (I) the amount of such partial Prepayment, minus (II) unpaid interest at the
Discount Rate, accrued through the end of the Collection Period immediately
following such partial Prepayment on such Contract's Discounted Contract Balance
prior to such partial Prepayment.

                   (xii)   REFUNDS TO OBLIGORS IN RESPECT OF PREPAYMENTS. The
Servicer may grant to an Obligor any rebate, refund or adjustment that the
Servicer in good faith believes is required, because of Prepayment in full of a
Contract. The Servicer may deduct the amount of any such rebate, refund or
adjustment from the amount otherwise payable by the Servicer into the Collection
Account; PROVIDED, HOWEVER, that the Servicer will not permit any rescission or
cancellation of any Contract which would materially impair the rights of the
Issuers or the Noteholders in the Contracts or the proceeds thereof, nor will
the prepayment price after giving effect to any such rebate, refund or
adjustment be less than the Prepayment Amount.

                   (xiii)  PARTIAL PREPAYMENT RECALCULATIONS. In the event of a
partial Prepayment, the Servicer shall recalculate the Discounted Contract
Balance and the allocation of Scheduled Payments to principal and interest.

                   (xiv)   NO OWNERSHIP INTEREST. The Servicer does not have any
ownership interest in the Pledged Property and will not assert any ownership
interest in the Pledged Property.

                   (xv)    COLLECTION POLICIES AND PROCEDURES. The Servicer
shall not amend, modify or otherwise change its Collection Policies and
Procedures in any manner without

                                       -7-
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providing prior written notice to the Indenture Trustee and the Noteholders, and
without the prior written consent of the Indenture Trustee and the Majority
Holders if such amendment, modification or change could materially and adversely
affect the collectability or the credit quality of the Contracts. The Servicer
shall notify the Indenture Trustee and the Rating Agencies of any such proposed
change and the Indenture Trustee shall notify the Noteholders and seek the
consent of the Majority Holders.

     Section 2.03  REPRESENTATIONS AND WARRANTIES OF THE BACK-UP SERVICER. The
Back-up Servicer hereby makes the following representations and warranties on
which the Originator, the Issuers, the Servicer, the Indenture Trustee and
Noteholders shall be entitled to rely:

             (a)   The Back-up Servicer is a Delaware limited liability company
duly organized, validly existing, and in good standing under the laws of the
State of Delaware.

             (b)   The Back-up Servicer has full power, authority and legal
right to execute, deliver, and perform this Agreement, and has taken all
necessary action to authorize the execution, delivery, and performance by it of
this Agreement.

             (c)   The execution, delivery and performance by the Back-up
Servicer of this Agreement and any other documents and transactions in
connection herewith to which the Servicer is party do not and will not (i)
violate any of the provisions of the organizational documents of the Back-up
Servicer, (ii) violate any provision of any law, governmental rule or regulation
currently in effect applicable to the Back-up Servicer or its properties or by
which the Back-up Servicer or its properties may be bound or affected, (iii)
violate any judgment, decree, writ, injunction, award, determination or order
currently in effect applicable to the Back-up Servicer or its properties or by
which the Back-up Servicer or its properties are bound or affected, (iv)
conflict with, or result in a breach of, or constitute a default under, any of
the provisions of any material indenture, mortgage, deed of trust, contract or
other instrument to which the Back-up Servicer is a party or by which it is
bound or (v) result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, mortgage, deed of trust,
contract or other instrument.

             (d)   The execution, delivery and performance by the Back-up
Servicer of this Agreement does not require the authorization, consent, or
approval of, the giving of notice to, the filing or registration with, or the
taking of any other action in respect of, any governmental authority or agency
regulating the banking and corporate trust activities of the Back-up Servicer.

             (e)   This Agreement has been duly executed and delivered by the
Back-up Servicer and constitutes the legal, valid, and binding agreement of the
Back-up Servicer, enforceable in accordance with its terms subject, as to the
enforcement of remedies, to bankruptcy, insolvency, reorganization, moratorium
and other similar laws affecting the enforceability of creditors' rights
generally applicable in the event of the bankruptcy, insolvency or
reorganization of the Servicer and to general principles of equity.

             (f)   There is no pending or, to the best of the Back-up Servicer's
knowledge, threatened action, suit, proceeding or investigation before any
court, administrative agency, arbitrator or governmental body against or
affecting the Back-up Servicer which, if decided

                                       -8-
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adversely, would materially and adversely affect (i) the condition (financial or
otherwise), business or operations of the Back-up Servicer, (ii) the ability of
the Back-up Servicer to perform its obligations under, or the validity or
enforceability of, this Agreement or any other documents or transactions
contemplated hereunder, (iii) any Pledged Property or title of any Obligor to
any Pledged Property or (iv) the Indenture Trustee's ability to foreclose or
otherwise enforce the liens of the Contracts.

                                    ARTICLE 3

                             PERFECTION OF TRANSFER

     Section 3.01  FILING; CUSTODY OF FILES; CONTRACT FILES.

             (a)   On the Closing Date with respect to the Initial Contracts, on
the related Subsequent Transfer Date with respect to Subsequent Contracts and on
the related Substitute Transfer Date with respect to Substitute Contracts, the
Servicer shall submit the Financing Statements for filing in the respective
filing offices named therein, and upon receipt of the filed stamped copies
thereof, the Servicer shall promptly deliver such filed stamped copies to the
Custodian. From time to time thereafter, the Servicer shall protect each of the
Issuers', the Indenture Trustee's and the Noteholders' interests, as such
interests may appear, in the Pledged Property by the filing of Financing
Statements, amendments thereto and continuation statements (in each case,
subject to the Filing Requirements), executing transfer instruments and making
notations on or taking possession of all records or documents of title, and
other actions requested by the Indenture Trustee or the Majority Holders, in
each case which would not require the Servicer to incur any out-of-pocket
expenses which are not reimbursable to the Servicer pursuant to this Agreement.

             (b)   Pursuant to the Indenture, the Indenture Trustee, on behalf
of the Issuers, acknowledges the pledge of the Pledged Property by LLC I and LLC
II, as applicable, to the Indenture Trustee and declares that the Indenture
Trustee will hold such Pledged Property, and maintain control of the Contract
Files held by the Custodian, in trust, for the use and benefit of the
Noteholders.

     Section 3.02  NAME CHANGE OR RELOCATION. If any change is to occur in an
Issuer's name, identity or structure, or in the location of its principal place
of business or chief executive office, then such Issuer shall deliver thirty
(30) days' prior written notice of such change or relocation to the Servicer,
the Indenture Trustee, the Custodian and the Noteholders. No later than five
days after the effective date of such change, the Servicer on behalf of the
Issuers shall file such amendments or statements as may be required to preserve
and protect the Indenture Trustee's interest in the Pledged Property, and shall
deliver copies thereof to the Indenture Trustee.

     Section 3.03  CHIEF EXECUTIVE OFFICES. During the term of this Agreement
and the Indenture, the Originator and the Initial Servicer will remain
incorporated and maintain their chief executive offices and principal places of
business in one of the States of the United States.

                                       -9-
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     Section 3.04  COSTS AND EXPENSES. The Servicer agrees to pay all costs and
disbursements in connection with filing Financing Statements and continuation
statements, as against all third parties, of the Indenture Trustee's right,
title and interest in and to the Pledged Property (subject to the Filing
Requirements with respect to the Equipment). The Initial Servicer agrees to pay
all taxes (other than net income taxes or taxes imposed in lieu thereof), if
any, owed in connection with ownership, transfer or sale of the Contracts and
the Collateral, together with all taxes required by the terms of the Contracts
to be paid by the Servicer on behalf of the related Obligors. The Initial
Servicer shall not be entitled to reimbursement for any such costs or
disbursements, other than from the Excluded Amounts retained by the Servicer.

     Section 3.05  POWER OF ATTORNEY. The Initial Servicer hereby irrevocably
constitutes and appoints the Indenture Trustee, with full power of substitution,
as its true and lawful attorney-in-fact with full irrevocable power and
authority in the place and stead of such Issuer and in the name of the Servicer
or in its own name, for the purpose of carrying out the terms of this Agreement,
to take any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of
this Agreement, and, without limiting the generality of the foregoing, the
Servicer hereby gives the Indenture Trustee the power and right, on behalf of
the Servicer, without notice to or assent by the Servicer, to do any or all of
the following:

             (a)   after an Event of Default or Event of Servicer Termination
has occurred and is continuing, at any time, in the name of the Servicer or its
own name, or otherwise, to take possession of and endorse and collect any
checks, drafts, notes, acceptances or other instruments, general intangibles or
contracts or with respect to any other collateral and to file any claim or to
take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Indenture Trustee for the purpose of collecting any
and all such moneys due under any account, instrument, general intangible or
contract with respect to the Pledged Property or to any other collateral
whenever payable; and

             (b)   whether or not an Event of Default or Event of Servicer
Termination has occurred, execute and deliver any and all agreements,
instruments, documents and papers (including, without limitation, UCC Financing
Statements) as the Indenture Trustee or a Noteholder may request to perfect the
Indenture Trustee's security interest in the Pledged Property (and subject to
the Filing Requirements with respect to the Equipment) or any other Collateral
and the goodwill and general intangibles of such Issuer relating thereto or
represented thereby.

                                    ARTICLE 4

                    ADMINISTRATION AND SERVICING OF CONTRACTS

     Section 4.01  ACCEPTANCE OF APPOINTMENT; DUTIES OF SERVICER.

             (a)   DUTIES OF SERVICER. The Servicer shall service, administer
and enforce the Contracts as Servicer and shall have full power and authority to
do any and all things in connection with such servicing and administration which
it may deem necessary or desirable;

                                      -10-
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PROVIDED, that such things are not inconsistent with the terms of this
Agreement. The Servicer will manage, service, administer, and make collections
on the Contracts in accordance with the terms of this Agreement, the Contracts,
the Credit and Collection Policies and Procedures and applicable law and, to the
extent consistent with such terms, in the same manner in which, and with the
same care, skill, prudence and diligence with which, it services and administers
leases and loans of similar credit quality for itself or others, if any, but in
any event, with no less care, skill, prudence and diligence than the customary
and usual standards of practice of prudent institutional small and middle ticket
equipment finance lease, receivable finance and professional practice finance
servicers and, in each case, taking into account its other obligations hereunder
(the "SERVICING STANDARD"). Notwithstanding the prior sentence, the Servicer
shall have previously directed or shall direct, not later than five Business
Days after the Closing Date, the Subsequent Transfer Date, or the Substitute
Transfer Date, as the case may be, each Obligor to make all payments with
respect to the respective Contracts which are due after the related Cut-Off Date
directly to the Lockbox Account. The Servicer's duties shall include collection
and posting of all payments, responding to inquiries of Obligors on the
Contracts, investigating delinquencies, accounting for collections and
furnishing monthly, quarterly and annual statements as provided herein, making
Servicer Advances and using commercially reasonable efforts to maintain the
first priority perfected security interest of the Indenture Trustee for the
benefit of the Noteholders in the Issuers' interest in the Contracts and, in
accordance with the Filing Requirements, in the related Equipment, including,
but not limited to, the filing of any Financing Statements or continuation
statements required to be filed pursuant to the UCC, which continuation
statements shall be filed on or before the 60th day prior to the expiration date
of such financing statement; and promptly delivering evidence of all such
filings to the Custodian, with a copy to the Indenture Trustee, with evidence of
the filing of continuation statements being delivered on or before the 30th day
before the expiration of such financing statements. The Servicer shall follow
its customary standards, policies, and procedures as set forth in its Credit and
Collection Policies and Procedures and shall have full power and authority,
acting alone, to do any and all things in connection with such managing,
servicing, administration, and collection that it may deem necessary or
desirable, subject to Section 2.02(b)(x). The Servicer may waive, modify or vary
any term of a Contract in accordance with the Servicing Standard or otherwise as
required by law if the Servicer determines, in its reasonable and prudent
judgment, that it will not materially and adversely affect the Noteholders;
PROVIDED, that the Servicer may only make Material Modifications to Contracts
having an aggregate Discounted Contract Balance (calculated as of the last day
of the immediately preceding Collection Period prior to the date of such
modification) not to exceed $13,300,000. In no event shall the Servicer make a
Material Modification to any Contract which would result in (i) the Discounted
Contract Balance of Contracts modified during any one Collection Period being
less than the aggregate Discounted Contract Balance of such Contracts
immediately prior to such modification or (ii) the term of such Contract being
extended by more than 6 months, PROVIDED, that in no event shall any such
extension cause the maturity date of such Contract to be extended beyond a date
which is later than 6 months prior to the latest Stated Maturity Date. With (i)
the prior written consent of (a) the Majority Holders and (b) the Rating
Agencies, or (ii) the unanimous written consent of the Noteholders, the Servicer
may make Material Modifications in excess of such $13,300,000 limit. If the
Servicer determines that a Material Modification should be made, the Servicer
shall forward such recommendation to the Indenture Trustee and the Indenture
Trustee shall forward such recommendation to the Noteholders for their consent
to such action. If such consent is not

                                      -11-
<Page>

received within 30 days, the Indenture Trustee shall notify the Servicer and
such consent shall be deemed denied. If the Servicer commences a legal
proceeding to enforce a Defaulted Contract pursuant to Section 4.04 hereof or
participates in a legal proceeding (including, without limitation, a bankruptcy
proceeding relating to or involving a Defaulted Contract), the Indenture Trustee
shall thereupon be deemed to have automatically assigned such Contract to the
Servicer solely for purposes of commencing or participating in any such
proceeding as a party or claimant, and the Servicer is authorized and empowered
by the Indenture Trustee, pursuant to this Section 4.01, to execute and deliver,
on behalf of the Indenture Trustee, any and all instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other notices,
demands, claims, complaints, responses, affidavits or other documents or
instruments in connection with any such proceedings (without representation,
warranty or recourse on behalf of the Indenture Trustee). The Indenture Trustee,
the Originator and the Issuers, as applicable, shall furnish the Servicer, and
the Servicer shall furnish any subservicer, with any powers of attorney and
other documents necessary or appropriate to enable the Servicer or a
subservicer, as applicable, to carry out its servicing and administrative duties
under this Agreement. If in any enforcement suit or legal proceeding it shall be
held that the Servicer may not enforce a Contract on the ground that it shall
not be a real party in interest or a holder entitled to enforce the Contract,
the Issuers shall, at the Originator's expense and direction, take steps to
enforce the Contract, including bringing suit in its name or the name of the
Indenture Trustee (prior written notice of which shall be given to the Indenture
Trustee and the Noteholders.

             (b)   CONSENT TO ASSIGNMENT OR REPLACEMENT. At the request of an
Obligor, the Servicer may, so long as such action is consistent with the
Servicing Standard, consent to the assignment or sublease of a unit of Equipment
under a Contract provided that the Obligor will remain liable for all of its
obligations under such Contract; PROVIDED, HOWEVER, that such assignee or
sub-lessee must satisfy the credit criteria set forth in the Credit and
Collection Policies and Procedures. Upon the request of any Obligor, the Initial
Servicer may, so long as such action is consistent with the Servicing Standard,
provide for additions and upgrades to a Contract, and the substitution or
replacement of any unit of Equipment for a substantially similar unit of
additional equipment having substantially the same fair market value as the unit
of Equipment that will be replaced or substituted.

             (c)   MAINTENANCE OF CREDIT FILES AND CONTRACT FILES. The Servicer
(i) shall maintain the Credit Files in a manner consistent with the Servicing
Standard and the performance of its obligations as Servicer pursuant to this
Agreement and will not dispose of any documents constituting the Contract Files
(other than Contract Files which relate solely to an Early Termination Contract,
an Expired Contract or a Purchased Contract and, to the extent applicable, the
related Collateral, but solely to the extent that the Obligor has paid all
amounts due with respect to such Contract in full), (ii) will use reasonable
efforts not to permit any person other than the Indenture Trustee to maintain
any Adverse Claim upon any Contract File (other than Contract Files which relate
solely to an Early Termination Contract, an Expired Contract or a Purchased
Contract and, to the extent applicable, the related Collateral, but solely to
the extent that the Obligor has paid all amounts due with respect to such
Contract in full) and (iii) except as otherwise permitted pursuant to Section
3.01(b)(ii), will not permit any person other than the Custodian to maintain
possession of any Contract File (other than Contract Files which relate solely
to an Early Termination Contract, an Expired Contract or a Purchased Contract
and, to the

                                      -12-
<Page>

extent applicable, the related Collateral but solely to the extent that all
Scheduled Payments due with respect to such Contract have been deposited in the
Collection Account).

             (d)   SUBSERVICERS. The Servicer may enter into servicing
agreements with one or more subservicers to perform all or a portion of the
servicing functions on behalf of the Servicer; PROVIDED, that the Servicer will
remain obligated and be liable to the Indenture Trustee and the Issuers for
servicing and administering the Contracts in accordance with the provisions of
this Agreement without diminution of such obligation and liability by virtue of
the appointment of such subservicer, to the same extent and under the same terms
and conditions as if the Servicer alone were servicing and administering the
Contracts. The fees and expenses of the subservicer (if any) will be as agreed
between the Servicer and its subservicer and paid by the Servicer from its own
funds, and neither the Indenture Trustee, the Issuers nor the Noteholders will
have any responsibility therefor. All actions of a subservicer taken pursuant to
such a subservicer agreement will be taken as an agent of the Servicer with the
same force and effect as though performed by the Servicer. Each subservicing
agreement, if any, shall provide that upon the occurrence of an Event of
Servicing Termination, the successor Servicer may assume or reject such
subservicing agreement.

             (e)   FURTHER ASSURANCES. The Indenture Trustee, the Originator and
the Issuers will furnish the Servicer, and the Servicer will furnish any
subservicer, with any powers of attorney and other documents necessary or
appropriate to enable the Servicer or a subservicer, as applicable, to carry out
its servicing and administrative duties under this Agreement.

             (f)   NOTICE TO OBLIGORS. The Servicer shall be required to notify
each Obligor in accordance with Section 4.01(a) hereof to make its payments to
the Lockbox Account; PROVIDED, HOWEVER, that in the event that any Servicer
resigns or is replaced, then if the place for payment pursuant to any Contract
is changed, the Successor Servicer must give each related Obligor prompt written
notice of its appointment and the place to which such Obligor should make
payments pursuant to each such Contract.

     Section 4.02  COLLECTION OF PAYMENTS.

             (a)   The Servicer shall use commercially reasonable efforts to
collect all payments called for under the terms and provisions of the Contracts
as and when the same shall become due, and shall follow such collection
procedures as it follows with respect to all comparable Contracts that it
services for itself or others in a manner consistent with the Servicing
Standard. The Servicer may in its reasonable discretion waive any late payment
charge or any other fees that may be collected in the ordinary course of
servicing a Contract.

             (b)   Notwithstanding the terms of any Contract, the Servicer may
in its discretion allow full Prepayments of a Contract by or on behalf of the
Obligor in accordance with Section 2.02(b)(xi) hereof. All Prepayments, if any,
received directly by the Servicer, notwithstanding the Servicer's notice to each
Obligor pursuant to Section 4.01(f) hereof, shall be deposited in the Collection
Account within two Business Days of receipt by the Servicer.

             (c)   To the extent provided for in any Contract, the Servicer
shall make commercially reasonable efforts to collect all payments with respect
to amounts due for

                                      -13-
<Page>

maintenance, taxes or assessments on the Equipment, any other Collateral or the
Contracts and shall remit such amounts to the appropriate maintenance provider
or Governmental Authority on or prior to the date such payments are due.

             (d)   The Servicer shall withdraw from the Lockbox Account all
Excluded Amounts and may deduct from amounts otherwise payable to the Collection
Account the amounts described in the last sentence of Section 3.01 of the
Indenture, and shall deposit or cause the Lockbox Bank to deposit all
Collections received in the Lockbox Account on an as collected basis by wire
transfer into the Collection Account no later than the second Business Day
following the date of receipt of any Collections in the Lockbox Account or
otherwise by the Servicer. The Servicer shall notify the Indenture Trustee in
writing in the Monthly Statement of all amounts transferred into the Collection
Account during the immediately preceding Collection Period. The Servicer shall
deposit on the related Transfer Date into the Collection Account all Collections
received during the period from a Transfer Date through the applicable Cut-Off
Date to the extent such amounts relate to Scheduled Payments due after such
Cut-Off Date..

             (e)   Based upon the amounts set forth in the Monthly Statement,
the Servicer shall cause the Indenture Trustee to distribute the Available Funds
in the Collection Account according to the priority set forth in Section 3.04(b)
of the Indenture.

             (f)   In the event that the Servicer acquires title to any item of
Equipment in the enforcement of any Contract, the Servicer shall use
commercially reasonable efforts to sell or otherwise dispose promptly of such
item of Collateral, consistent with the Servicing Standard. The Servicer shall
not lease, operate or otherwise manage any such items of Collateral unless prior
thereto, the Servicer remits to the Collection Account the related Prepayment
Amount with respect to such Contract.

             (g)   Any payments (net of Excluded Amounts except taxes) received
from, or on behalf of, an Obligor with respect to a Contract will be allocated
first to amounts then payable under the Contract which became due and payable
first.

             (h)   The Servicer shall not allow an offset of the amount of any
security deposit against any Scheduled Payment under such Contract.

             (i)   Based upon the amounts set forth in the Monthly Statement,
the Servicer shall direct the Indenture Trustee (by means of the Monthly
Statement) as to amounts of Residual Payments that are required to be withdrawn
from the Collection Account and deposited to the Residual Payment Account.

     Section 4.03  SERVICER ADVANCES. If on any Determination Date occurring
prior to the payment in full of the Notes, the Servicer determines that any
Scheduled Payments or Final Scheduled Payments due on the Contracts with respect
to the related Collection Period have not been received by such Determination
Date, the Servicer, to the extent that in its good faith business judgment it
determines that it can recoup such Servicer Advance from subsequent collections
or recoveries under the related Contract, shall make a Servicer Advance up to an
amount equal to the amount of such delinquent Scheduled Payments. The Servicer
shall deposit any Servicer Advances into the Collection Account on such
Determination Date in same day

                                      -14-
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funds. The Servicer shall be reimbursed for any outstanding Servicer Advance
from Collections on the related Contracts in respect of which it has made a
Servicer Advance. If a Contract in respect of which a Servicer Advance has been
made becomes a Defaulted Contract, the Servicer shall be reimbursed for such
Servicer Advance pursuant to Section 3.04 of the Indenture from amounts on
deposit in the Collection Account on any Payment Date. If at any time HPSC or
any of its Affiliates is no longer acting as Servicer hereunder, no successor
Servicer shall be required to make any Servicer Advance.

     Section 4.04  REALIZATION UPON DEFAULTED CONTRACTS.

             (a)   The Servicer shall use commercially reasonable efforts,
consistent with the Servicing Standard, to accelerate, repossess, foreclose
upon, or otherwise comparably convert the ownership of any Collateral that it
has reasonably determined should be repossessed or otherwise converted following
a default under the Contract, and remarket, either through sale or re-lease, the
Collateral upon the expiration of the term of the related Contract or following
a default under the Contract and act as sales and processing agent for
Collateral which it repossesses. The Servicer shall follow such practices and
procedures as are consistent with the Servicing Standard and as it shall deem
necessary or advisable and as shall be customary and usual in its servicing of
contracts similar to the contracts and other actions by the Servicer in order to
realize upon such a Contract, which may include commercially reasonable efforts
to enforce any recourse obligations of Obligors and repossessing and selling the
Collateral at public or private sale. The foregoing is subject to the provision
that the Servicer shall not be required to expend funds in connection with the
foregoing unless it shall determine in accordance with the Servicing Standard,
that such action will increase the Liquidation Proceeds by an amount greater
than the amount of such expenses.

             (b)   Notwithstanding the foregoing, the Servicer shall take action
to accelerate all amounts due under any Contract immediately after such Contract
becomes a Defaulted Contract and shall, in accordance with its Credit and
Collection Policies and Procedures, bring an action against the Obligor for all
amounts due under the Contract and, to the extent applicable, institute
proceedings to repossess, foreclose upon and sell or re-lease the Collateral;
PROVIDED, HOWEVER, that the Servicer will not accelerate any Scheduled Payment
unless permitted to do so by the terms of the Contract or under applicable law;
and PROVIDED, FURTHER, that the Servicer shall not declare an Obligor to be in
default under a Contract nor exercise any other remedies under such Contract
based solely on a default by such Obligor under any other obligation of such
Obligor to the Originator or either of their Affiliates, if such Obligor is not
also in default under such Contract unless it concludes that declaring such
default is in the best interest of the Noteholders or will maximize potential
recoveries from such Obligor for the Issuers for the benefit of the Noteholders.
To the extent that an escrow account has been established by the related Obligor
to cover defaults on contracts between such Obligor and the Originator, amounts
in such escrow account shall be applied against defaults under each such
contract in the order that such defaults occur with respect to any such
contract.

             (c)   The Servicer shall remit to the Collection Account within two
Business Days of receipt all Liquidation Proceeds, if any, received directly by
the Servicer, notwithstanding the Servicer's notice to each Obligor pursuant to
Section 4.01(f) hereof, in

                                      -15-
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connection with the sale or disposition of a Defaulted Contract to the extent
such Liquidation Proceeds do not constitute Excluded Amounts. Expenses and costs
plus interest on such amounts related to this Section at the Reimbursement Rate
shall first be reimbursed from proceeds received in respect of a liquidation
then from Excluded Amounts and then pursuant to Section 3.04(b)(I)(xxi) or
Section 3.04(b)(II)(xx), as applicable.

             (d)   The Servicer shall remit to the Collection Account within two
Business Days of receipt all payments made directly to the Servicer,
notwithstanding any notice given pursuant to Section 4.01(f) hereof, with
respect to any guaranties of an Obligor's obligations under any Contract.

     Section 4.05  MAINTENANCE OF INSURANCE POLICIES.

             (a)   In accordance with the Servicing Standard, the Servicer shall
cause each Obligor to maintain all related Insurance Policies. To the extent
that Obligors have elected to pay amounts under the related Contracts, which
will be applied to pay premiums in respect of Insurance Policies entered into by
the Originator in respect of such Contracts, the Servicer shall, from the
Excluded Amounts, cause such premiums to be applied to maintain such Insurance
Policies, with any excess amounts being retained by the Servicer.

             (b)   In connection with its activities as Servicer of the
Contracts, the Servicer agrees to present claims to the insurer under each
Insurance Policy, and to settle, adjust and compromise such claims, in each
case, consistent with the terms of each Contract. The Servicer shall remit to
the Collection Account within two Business Days of receipt all Insurance
Proceeds received directly by the Servicer with respect to any Contract,
Equipment or any other Collateral subject thereto, notwithstanding any notice
given pursuant to Section 4.01(f) hereof.

             (c)   In addition to the insurance maintained by the Obligors with
respect to the Equipment or any other Collateral, the Servicer (or an Affiliate
of the Servicer) maintains, and at all times while acting as Servicer hereunder
shall continue to maintain a general liability insurance policy in the aggregate
amount of $2,000,000 and an excess liability insurance policy in umbrella form
in the aggregate amount of $5,000,000. All premiums in respect of such policies
have been paid and shall continue to be promptly paid as such premiums become
due. The Indenture Trustee shall at all times while the Notes are outstanding be
named as an additional insured on such casualty and liability policies
maintained by the Servicer. In the event the Back-up Servicer, when acting as
Servicer hereunder, maintains such insurance policy and the cost of such
insurance policy is in excess of the cost of insurance policies otherwise
maintained by the Back-up Servicer, such cost shall be reimbursed to the Back-up
Servicer in its capacity as Servicer as an expense pursuant to Section 3.04(b)
of the Indenture.

             (d)   The Servicer shall maintain errors and omissions insurance
with respect to the Servicer, its employees and agents, a fidelity bond and
coverage in respect of crime and breaches of fiduciary duty ("FIDUCIARY
INSURANCE") in such form and amount as is customary for institutions acting as
custodian of funds in respect of equipment leases, loans or receivables on
behalf of institutional investors. Any such fidelity bond and errors and
omissions insurance shall protect and insure the Servicer and the Indenture
Trustee on behalf of the Noteholders against

                                      -16-
<Page>

losses, including forgery, theft, embezzlement, fraud, errors and omissions and
negligent acts of such persons and shall be maintained in a form and amount that
would meet the requirements of prudent institutional equipment lease and loan
servicers. No provision of this Section 4.05 requiring such fidelity bond,
Fiduciary Insurance and errors and omissions insurance shall diminish or relieve
the Servicer from its duties and obligations as set forth in this Agreement. The
Servicer shall be deemed to have complied with this provision if one of its
respective Affiliates has such fidelity bond, Fiduciary Insurance and errors and
omissions policy coverage and, by the terms of such fidelity bond, Fiduciary
Insurance and errors and omissions policy, the coverage afforded thereunder
extends to the Servicer and the Indenture Trustee on behalf of the Noteholders.
The Servicer shall cause each and every subservicer for it to maintain a policy
of insurance covering errors and omissions and a fidelity bond which would meet
such requirements. The Indenture Trustee, on behalf of the Noteholders, shall be
named an additional insured and upon a request of the Indenture Trustee, the
Servicer shall cause to be delivered to the Indenture Trustee a certification
evidencing coverage under such fidelity bond and insurance policy. Any such
fidelity bond or insurance policy shall not be (i) canceled unless the Servicer
has identified a replacement fidelity bond or (ii) modified in a materially
adverse manner without ten days' prior written notice to the Noteholders, the
Indenture Trustee and the Rating Agencies, and such modification shall not
result in the withdrawal or downgrade of the rating of any class of Notes.

     Section 4.06  RESERVED.

     Section 4.07  SERVICING COMPENSATION; PAYMENT OF CERTAIN EXPENSES AND
CUSTODIAN FEE BY SERVICER. Until such time as the Servicer has received a
Servicer Termination Notice (and has been paid all accrued and unpaid Servicer
Fees as of the date of actual termination), as compensation for its activities,
the Servicer shall be entitled to receive the Servicer Fee pursuant to Section
3.04(b)(I)(iii) of the Indenture. The Servicer shall be required to pay all
expenses incurred by it in connection with its activities hereunder, including,
without limitation, (a) fees and disbursements of the Independent Public
Accountants, (b) taxes imposed on the Servicer (but excluding any sales taxes
imposed on any Obligor, the Originator, the Issuers, the Transferors, any
Noteholder or any other Person), (c) expenses incurred in connection with
distributions and reports to the Noteholders and (d) all other fees and expenses
incurred by the Servicer in connection with performing its duties hereunder, not
expressly stated hereunder to be for the account of the Noteholders or otherwise
reimbursable pursuant to this Agreement or Indenture. On each Payment Date, the
Servicer shall pay to the Custodian the Custodian Fee out of Excluded Amounts.

     Section 4.08  MONTHLY STATEMENT.

             (a)   With respect to each Payment Date and the related Collection
Period, the Servicer will provide to the Back-up Servicer and the Indenture
Trustee, and the Indenture Trustee will provide to the Noteholders and the
Rating Agencies, on each Determination Date, a monthly statement (a "MONTHLY
STATEMENT"), signed by a Servicing Officer, in substantially the form of Exhibit
A hereto.

                                      -17-
<Page>

             (b)   On each Determination Date, the Servicer will deliver or
cause to be delivered to the Indenture Trustee and the Back-up Servicer a
Computer Tape and a diskette (or any other electronic transmission reasonably
acceptable to the Indenture Trustee) in a format reasonably acceptable to the
Indenture Trustee, containing the information with respect to the Contracts as
of the preceding Collection Period necessary for preparation of the Monthly
Statement relating to the immediately succeeding Determination Date and
necessary to determine the application of Collections as provided in the
Indenture. Other than the duties specifically set forth in the Transaction
Documents, the Indenture Trustee shall have no obligations hereunder, including,
without limitation, to supervise, verify, monitor or administer the performance
of the Servicer or to verify the information contained on the Computer Tape
delivered pursuant to this Section other than to verify that such Computer Tape
is in a readable format.

     Section 4.09  ANNUAL CERTIFICATES AS TO COMPLIANCE. The Servicer will
provide to the Indenture Trustee and the Rating Agencies, no later than April 30
of each year, commencing on April 30, 2004, an Officer's Certificate stating
that (a) a review of the activities of the Servicer, and the Servicer's
performance pursuant to this Agreement, for the period ending on the last day of
the immediately preceding fiscal year has been made under such Person's
supervision, and (b) the Servicer has performed or has caused to be performed in
all material respects all of its obligations under this Agreement throughout
such period and no Event of Servicing Termination has occurred and is continuing
(or, if an Event of Servicing Termination has so occurred and is continuing,
specifying each such event, the nature and status thereof and the steps
necessary to remedy such event, and, if an Event of Servicing Termination
occurred during such fiscal year but is no longer continuing, and no notice
thereof was given to the Indenture Trustee, specifying such Event of Servicing
Termination and the steps which were taken to remedy such event).

     Section 4.10  ANNUAL INDEPENDENT PUBLIC ACCOUNTANT'S REPORTS. The Initial
Servicer will cause an Independent Public Accountant (who may also render other
services to the Servicer) to furnish to the Indenture Trustee, the Noteholders
and the Rating Agencies, no later than May 31 of each year, commencing May 31,
2004, a report relating to the previous calendar year to the effect that (a)
such firm has read the Indenture and this Agreement, (b) has examined, in
accordance with the uniform Single Attestation Program for Mortgage Bankers
("USAP") and with certain procedures specified in such certificate or opinion,
the records and calculations set forth in the Monthly Statements delivered by
the Initial Servicer during the reporting period and certain specified documents
and records relating to the servicing of the Contracts and the reporting
requirements with respect thereto and (c) on the basis of such examination,
certifies that the Initial Servicer complied with the minimum servicing
standards identified in USAP, in all material respects, except for such
significant exceptions or errors in records that, in the opinion of such firm,
the USAP requires it to report, and the servicing reporting requirements have
been conducted in compliance with the Indenture and this Agreement. In the event
such firm requires the Indenture Trustee to agree to the procedures performed by
such firm, the Servicer shall request the Indenture Trustee in writing to so
agree; it being understood and agreed that the Indenture Trustee will deliver
such letter of agreement upon written direction of the Majority Holders, and the
Indenture Trustee shall not make any independent inquiry or investigation as to,
and shall have no obligation or liability in respect of, the sufficiency,
validity or correctness of such procedures. Delivery of such reports,
information and documents to the

                                      -18-
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Indenture Trustee is for informational purposes only, and the Indenture
Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Servicer's compliance with any of its covenants
hereunder.

In the event the Back-up Servicer is then acting as Servicer, in lieu of the
above, the Back-up Servicer, no later than May 31 of each year, commencing May
31, 2004, at its expense, shall cause an Independent Public Accountant to
furnish a statement (an "ACCOUNTANT'S STATEMENT") to the Indenture Trustee and
the Noteholders to the effect that (i) such Independent Public Accountant has
obtained a letter of representation regarding certain matters from the
management of the Back-up Servicer, which includes an assertion that the Back-up
Servicer has complied with certain minimum mortgage loan servicing standards (to
the extent applicable to commercial and multifamily mortgage loans) identified
in USAP, with respect to the servicing of commercial and multifamily mortgage
loans during the most recently completed calendar year and (ii) on the basis of
an examination conducted by such Independent Public Accountant in accordance
with standards established by the American Institute of Certified Public
Accountants, such representation is fairly stated in all material respects,
subject to such exceptions and other qualifications that may be appropriate. In
rendering its report such firm may rely, as to matters relating to the direct
servicing of commercial and multifamily mortgage loans by sub-servicers, upon
comparable reports of Independent Public Accountants rendered on the basis of
examinations conducted in accordance with the same standards (rendered within
one year of such report) with respect to those sub-servicers. With respect to
any electronic version of an Accountant's Statement prepared by the reporting
person, the reporting person shall receive written confirmation from the related
accountants that such electronic version is a conformed copy of the original
Accountant's Statement.

     Section 4.11  ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING THE
PLEDGED PROPERTY.

             (a)   The Servicer shall provide the Indenture Trustee, the
Noteholders and their respective duly authorized representatives, agents,
attorneys or accountants access to any and all documentation regarding the
Pledged Property (including the List of Initial Contracts, all Lists of
Subsequent Contracts and all Lists of Substitute Contracts) that the Servicer
may possess, such access being afforded without charge but only upon reasonable
request and during normal business hours, so as not to interfere unreasonably
with the Servicer's normal operations or customer or employee relations, at
offices of the Servicer designated by the Servicer.

             (b)   At all times during the term hereof, the Servicer shall
either (i) keep available in physical form at its principal executive office for
inspection by the Indenture Trustee, any Noteholder, or their respective duly
authorized representatives, agents, attorneys or accountants a list of all
Contracts then subject to the lien of the Indenture, together with a
reconciliation of such list to the List of Initial Contracts, all Lists of
Subsequent Contracts and all Lists of Substitute Contracts and each of the
Monthly Statements, indicating the cumulative removals and additions of
Contracts, subject to the lien of the Indenture or (ii) maintain electronic
facilities which allow such list and reconciliation to be generated.

                                      -19-
<Page>

             (c)   The Servicer will maintain accounts and records as to each
respective Contract serviced by the Servicer that are accurate and sufficiently
detailed to permit (i) the reader thereof to know as of the most recent
Determination Date the status of such Contract, including payments and
recoveries made and payments owing (and the nature of each), and (ii)
reconciliation between payments or recoveries on (or with respect to) each
Contract and the amounts from time to time deposited in the Collection Account
in respect of such Contract.

             (d)   The Servicer will maintain its Contract Management System and
other computerized records so that, from and after the time of the pledge under
the Indenture of each Contract to the Indenture Trustee, the Servicer's accounts
and records (including any back-up computer archives) that refer to any Contract
indicate clearly that the Contract is Pledged Property. Indication of a Contract
being Pledged Property will be deleted from or modified on the Servicer's
accounts and records when, and only when such Contract is an Early Termination
Contract, an Expired Contract or a Purchased Contract and all amounts payable
under the Contract or, in the case of a Purchased Contract, under the
Transaction Documents, have been paid in full.

             (e)   The failure of the Servicer to disclose information whose
disclosure is not permitted by applicable law shall not constitute a breach of
this Section 4.11.

     Section 4.12  FINANCIAL STATEMENTS. The Servicer (except if the Back-up
Servicer is acting in such capacity) shall provide to the Indenture Trustee, the
Noteholders and the Rating Agencies (i) quarterly unaudited financial statements
of the Servicer for the then-current fiscal year and (ii) annual audited
financial statements of the Servicer for the most recently completed fiscal
year; PROVIDED, that to the extent such information is publicly available on a
website, the Servicer shall only need to notify the Indenture Trustee, the
Noteholders and the Rating Agencies in writing of the availability of such
financial statements and the address for the website where such financial
statements are located.

     Section 4.13  SERVICER ASSISTANCE. The Servicer shall make reasonable
efforts to cooperate with the Back-up Servicer to enable the Back-up Servicer to
perform its duties hereunder. In addition, the Servicer shall be required to
provide to the Back-up Servicer the following: (i) information regarding the
Collections and the Accounts on a daily basis, (ii) a weekly data tape with
respect to the Contracts, (iii) each Monthly Statement as required pursuant to
Section 4.08 above, together with a monthly data tape with respect to the
Contracts, (iv) a copy of the Servicer's current Credit and Collection Policies
and Procedures, as amended from time to time, and (v) such periodic UCC and tax
information as it may require from time to time, or access to the Servicer's
third party service providers in such respects.

     Section 4.14  PERFORMANCE OF BACK-UP SERVICER'S DUTIES.

             (a)   The Back-up Servicer, prior to becoming the successor
Servicer, shall perform the following duties and obligations:

                   (i)     Immediately following the Closing Date, the Back-up
Servicer shall accurately record the Contracts in its records.

                                      -20-
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                   (ii)    Promptly on receipt of the daily information received
from the Servicer in respect of the Collections and the Accounts, the Back-up
Servicer shall record such information in its records.

                   (iii)   Promptly on receipt of the weekly data tape with
respect to the Contracts received from the Servicer with respect to the
Contracts, the Back-up Servicer shall review such data tape and reconcile the
Discounted Contract Balances with those in its records.

                   (iv)    As soon as practicable following each related
Determination Date (but in no event later than 2 Business Days following such
Determination Date), the Back-up Servicer shall review the summary and
settlement report worksheets contained in the Monthly Statement and will verify
that the correct balances have been inserted based solely on the formulas
contained in the Monthly Statement. As soon as practicable following each
related Determination Date (but in no event later than 2 Business Days following
such Determination Date), the Back-up Servicer shall review the monthly data
tape provided by the Servicer with respect to the Contracts.

                   (v)     The Back-up Servicer shall notify the Servicer and
the Indenture Trustee in writing of any disagreements with the summary and
settlement worksheet in the Monthly Statement based on such review or of any
discrepancies with respect to the monthly data tape not later than the third
Business Day preceding the related Payment Date to the extent such Monthly
Statement or monthly data tape was received on or prior to the Business Day
following the related Determination Date and as soon as practicable if it is
received after such date.

                   (vi)    If the Servicer disagrees with the notice provided
under paragraph (iv) above by the Back-up Servicer or if the Servicer has not
reconciled such discrepancy, the Back-up Servicer agrees to confer with the
Servicer to resolve such disagreement as promptly as practicable and shall
settle such discrepancy with the Servicer if possible, and notify the Indenture
Trustee and the Rating Agencies in writing of the resolution thereof. The
Servicer hereby agrees to cooperate at its own expense with the Back-up Servicer
in reconciling any discrepancies therein. If after the notification provided
under paragraph (i) above by the Back-up Servicer and prior to the related
Payment Date, such discrepancy is not resolved, the Back-up Servicer shall
promptly notify in writing the Indenture Trustee of the continued existence of
such discrepancy. Following receipt of such notice by the Indenture Trustee, the
Servicer shall deliver to the Indenture Trustee and the Back-up Servicer no
later than two Business Days after such receipt, a certificate describing the
nature and amount of such discrepancies and the actions the Servicer proposes to
take with respect thereto.

                   (vii)   On a quarterly basis, beginning on the Determination
Date occurring in July 2003, the Back-up Servicer shall prepare a duplicate
Monthly Statement from the Back-up Servicer's records.

             (b)   In the event that the Back-up Servicer shall become the
Servicer hereunder, the Back-up Servicer shall service and administer the
Contracts and perform all of its duties hereunder in accordance with customary
and usual procedures employed by institutions

                                      -21-
<Page>

servicing commercial loans, which institutions are considered prudent by the
Back-up Servicer, and in accordance with the Back-up Servicer's own customary
practices, or if a higher standard, the highest degree of skill and attention
that the Back-up Servicer exercises with respect to contracts comparable to the
Contacts that the Back-up Servicer services for itself.

             (c)   The Back-up Servicer undertakes to perform only such duties
and obligations as are specifically set forth in this Agreement, it being
expressly understood by all parties hereto that there are no implied duties or
obligations of the Back-up Servicer hereunder. Without limiting the generality
of the foregoing, the Back-up Servicer, except as expressly set forth herein,
shall have no obligation to supervise, verify, monitor or administer the
performance of the Servicer. The Back-up Servicer shall have no liability for
any act or omission of the Servicer. Neither the Back-up Servicer nor any of its
officers, directors, employees or agents shall be liable, directly or
indirectly, for any damages or expenses arising out of the services performed
under this Agreement other than damages or expenses which result from the gross
negligence or willful misconduct of it or them.

     Section 4.15  INDEMNITY FOR LIABILITY CLAIMS. The Issuers shall jointly and
severally indemnify, defend and hold harmless the Back-up Servicer (which shall
include any of its directors, members, managers, employees, officers and agents)
against and from any and all costs, expenses, losses, damages, claims and
liabilities arising out of or resulting from this Agreement (in its role as
Back-up Servicer and as successor Servicer hereunder) to the extent not paid by
the Servicer pursuant to Section 5.01 of this Agreement. Such amounts shall be
paid solely from amounts on deposit in the Collection Account pursuant to
Section 3.04(b)(I)(ii) of the Indenture and is otherwise non-recourse to the
Issuers; provided, that the Back-up Servicer shall not be entitled to any
indemnification for any cost, expense, loss, damage or liability arising out of
or resulting from the willful misconduct or gross negligence of the Back-up
Servicer or its directors, employees, officers or agents.

                                    ARTICLE 5

                                  THE SERVICER

     Section 5.01  LIABILITY OF SERVICER; INDEMNITIES. (a) The Servicer shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer herein. Such obligations shall include the following:

                   (i)     The Servicer (unless the Back-up Servicer is then
acting as Servicer) shall indemnify, defend and hold harmless the Indenture
Trustee (which shall include any of its directors, employees, officers and
agents), the Issuers, the Originator, the Transferors, the Back-up Servicer and
the Noteholders against and from, and reimburse for, any and all costs,
expenses, losses, liabilities, obligations, damages, claims, injuries (to
persons, property or natural resources), penalties, documentary stamp or similar
taxes, actions, suits and judgments arising out of or resulting from the use,
repossession, foreclosure or operation of any Collateral by the Servicer; and

                                      -22-
<Page>

                   (ii)    The Initial Servicer shall indemnify, defend and hold
harmless the Indenture Trustee (which shall include any of its directors,
employees, officers and agents), the Issuers, the Originator, the Transferors,
the Back-up Servicer and the Noteholders against and from, and reimburse for,
any and all costs, losses, liabilities, obligations, expenses (including the
reasonable fees and expenses of agents and counsel) claims, damages, injuries
(to persons, property or natural resources), penalties, documentary stamp or
similar taxes, actions, suits and judgments to the extent that such losses,
claims, damages or liabilities arose out of, or were imposed upon the Indenture
Trustee, the Issuers, the Originator, the Transferors or the Noteholders in
connection with or by reason of (a) the acts of the Initial Servicer or the
failure by the Initial Servicer to perform its duties under this Agreement or
under the other Transaction Documents or errors or omissions of the Initial
Servicer related to such duties including the making of any representations or
warranties hereunder which are inaccurate in any material respect; or (b) in the
case of the Indenture Trustee, the performance of its duties hereunder and under
the other Transaction Documents, except to the extent that such loss, expense,
damage, claim or liability resulted from the Indenture Trustee's gross
negligence or willful misconduct. The provisions of this Section shall run
directly to and be enforceable by an injured party subject to the limitations
hereof, and the indemnification provided to the Indenture Trustee, the Issuers,
the Originator, the Transferors and the Noteholders pursuant to this Article V
by the Initial Servicer shall survive the payment in full of the Notes, the
termination of the Indenture, and the resignation or removal of the Indenture
Trustee.

             (b)   If the Back-up Servicer is acting as Servicer, the Back-up
Servicer will indemnify, defend and hold harmless the Issuers, the Originator,
the Indenture Trustee, the Transferors, the Servicer and the Noteholders against
any and all costs, losses, liabilities, obligations, expenses, claims, damages,
injuries, penalties, actions, suits and judgments arising out of (i) a breach of
the representations and warranties of the Back-up Servicer hereunder or (ii)
arising out of the willful misconduct or gross negligence of the Back-up
Servicer in performing its duties as successor Servicer hereunder provided,
however, that the Back-up Servicer shall have no obligation to indemnify any
Person for any cost, loss, liability, obligation, expense, claim, damage,
injury, penalty, action, suit or judgment arising out of the gross negligence or
willful misconduct of such Person or for any loss or damage which is in the
nature of consequential or indirect loss or damage.

             (c)   The Servicer shall pay any amounts owing pursuant to Section
5.01(a) hereof directly to the indemnified Person, and such amounts shall not be
deposited in the Collection Account.

             (d)   Indemnification under this Section 5.01 shall include,
without limitation, reasonable fees and expenses of counsel and expenses of
litigation reasonably incurred. If the Servicer has made any indemnity payments
to the Indenture Trustee, the Issuers, the Originator, the Transferors or the
Noteholders pursuant to this Section 5.01 and such party thereafter collects any
of such amounts from others, such party will promptly repay such amounts
collected to the Servicer, without interest.

     Section 5.02  MERGER, CONSOLIDATION, OR ASSUMPTION OF THE OBLIGATIONS OF
SERVICER. Any entity (i) into which the Servicer may be merged or consolidated,
(ii) resulting from any

                                      -23-
<Page>

merger or consolidation to which the Servicer shall be a party or (iii)
succeeding to the business of the Servicer, shall be the successor to the
Servicer hereunder, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding, and such entity in any of the foregoing cases shall execute an
agreement of assumption, in a form reasonably satisfactory to the Indenture
Trustee and the Noteholders, agreeing to perform every obligation of the
Servicer hereunder; PROVIDED, HOWEVER, that the Initial Servicer shall not merge
or consolidate with any other entity nor discontinue its existence until the
Indenture Trustee has received written confirmation from the Rating Agencies
that such action shall not adversely affect the rating of any Class of Notes.
The Servicer shall provide prompt written notice of any such event to the
Issuers, the Indenture Trustee, the Noteholders and the Rating Agencies.

     Section 5.03  LIMITATION ON LIABILITY OF SERVICER AND OTHERS. Neither the
Servicer nor any of the directors, officers, employees or agents of the Servicer
shall be under any liability to the Indenture Trustee, the Originator, the
Transferors, the Issuers or the Noteholders, except as expressly provided
herein, for any action taken or for refraining from the taking of any action
pursuant to this Agreement or the Indenture or for errors in judgment made in
good faith; PROVIDED, HOWEVER, that this provision shall not protect the
Servicer or any Person against any liability that would otherwise be imposed by
reason of willful misconduct, bad faith or gross negligence in the performance
of duties hereunder or under the Indenture. The Servicer and any director or
officer or employee or agent of the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder or under the Indenture. Except as
provided herein, the Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action that is not incidental to its duties to
service the Pledged Property in accordance with this Agreement and that in its
opinion may involve it in any expense or liability.

     Section 5.04  SERVICER NOT TO RESIGN. Subject to the provisions of Section
5.02 hereof, the Servicer shall not resign from the obligations and duties
hereby imposed on it as Servicer except upon the consent of either (i) (a) the
Majority Holders and (b) the Rating Agencies, or (ii) 100% of the Noteholders,
or (iii) a determination that the performance of the Servicer's duties hereunder
is no longer permissible under applicable law. Any such determination permitting
the resignation of the Servicer shall be evidenced by an Opinion of Counsel to
such effect delivered to the Indenture Trustee, the Noteholders and the Rating
Agencies. No such resignation shall become effective until a successor Servicer
reasonably acceptable to the Majority Holders shall have assumed the
responsibilities and obligations of the Servicer in accordance with Section 6.02
hereof.

                                    ARTICLE 6

                              SERVICING TERMINATION

     Section 6.01  EVENTS OF SERVICING TERMINATION.

             (a)   If any of the following events (each an "EVENT OF SERVICING
TERMINATION") shall occur and be continuing:

                                      -24-
<Page>

                   (i)     Any failure by the Servicer (A) to make a Servicer
Advance in accordance with Section 4.03 hereof (for so long as HPSC or any of
its Affiliates is acting as Servicer) or (B) to make any payment or deposit
required to be made hereunder that, in either case, continues unremedied for a
period of two Business Days after the date such Servicer Advance, payment or
deposit, as applicable, was due (or with respect to reimbursable fees and
expenses payable to third parties by the Servicer, within ten Business Days of
the date when any such reimbursement was due);

                   (ii)    Any failure by the Servicer to submit a Monthly
Statement pursuant to Section 4.08 hereof that continues unremedied for a period
of three Business Days after the earlier of the date upon which (A) the
Indenture Trustee or a Noteholder provides written notification to the Servicer
of such failure or (B) any Servicing Officer has actual knowledge that the
Indenture Trustee and the Noteholders have not received a copy of the Monthly
Statement in accordance with the provisions hereof;

                   (iii)   Any failure on the part of the Servicer duly to
observe or perform in any material respect any other covenants or agreements of
the Servicer set forth in this Agreement or any other Transaction Document to
which it is a party or any breach of a representation or warranty of the
Servicer set forth in Section 2.02 of this Agreement, which failure or breach,
individually or taken together with all other failures or breaches, (A)
materially and adversely affects the rights of the Indenture Trustee, the
Noteholders or the Issuers and (B) continues unremedied for a period of 30 days
after the earlier to occur of (x) the date on which written notice of such
failure or breach shall have been given to a Servicing Officer by the Indenture
Trustee, the Issuers or any of the Noteholders or (y) the date on which any
Servicing Officer has actual knowledge, or is required pursuant to the terms of
this Agreement to provide notice to the Noteholders, of any such failure or
breach;

                   (iv)    The Servicer shall consent to the appointment of a
custodian, receiver, trustee or liquidator (or other similar official) of
itself, or of a substantial part of its property, or shall admit in writing its
inability to pay its debts generally as they come due, a court of competent
jurisdiction shall determine that the Servicer is generally not paying its debts
as they come due or the Servicer shall make a general assignment for the benefit
of creditors;

                   (v)     The Servicer shall file a voluntary petition in
bankruptcy or a voluntary petition or an answer seeking reorganization in a
proceeding under any bankruptcy laws (as now or hereafter in effect) or an
answer admitting the material allegation of a petition filed against the
Servicer in any such proceeding, or the Servicer shall, by voluntary petition,
answer or consent, seek relief under the provisions of any now existing or
future bankruptcy or other similar law providing for the reorganization or
winding up of debtors, or providing for an agreement, composition, extension or
adjustment with its creditors;

                   (vi)    A petition against the Servicer in a proceeding under
applicable bankruptcy laws or other insolvency laws, as now or hereafter in
effect, shall be filed and shall not be stayed, withdrawn or dismissed within 60
days thereafter, or if, under the provisions of any law providing for
reorganization or winding-up of debtors which may apply to the Servicer, any
court of competent jurisdiction shall assume jurisdiction, custody or control of
the Servicer,

                                      -25-
<Page>

or any substantial part of its property, and such jurisdiction, custody or
control shall remain in force unrelinquished, unstayed or unterminated for a
period of 60 days;

                   (vii)   Any assignment of rights or delegations of duties by
the Servicer with respect to its duties or rights hereunder, except as
specifically permitted hereunder, or any attempt to make such an assignment or
delegation;

                   (viii)  A Restricting Event shall occur;

                   (ix)    The occurrence of a change of control of the Servicer
("control" having the meaning ascribed to it in the rules and regulations under
the Securities Exchange Act of 1934, as amended);

                   (x)     Failure of the Initial Servicer or the Originator to
make one or more payments due with respect to aggregate recourse debt or other
obligations exceeding $1,000,000, after giving effect to any applicable cure
period, so long as such failure shall be continuing and shall not have been
waived by the Person or Persons entitled to performance;

                   (xi)    One or more judgments, decrees or orders against the
Servicer or the Originator for the payment of money aggregating in excess of
$1,000,000 shall exist, and any one of such judgments, decrees or orders shall
have been unsatisfied and in effect for any period of 60 consecutive days
without a stay of execution; PROVIDED, HOWEVER that the foregoing shall not
apply to the extent of any judgment which is covered by an insurance policy (a)
provided by an insurance company ranking among the four highest ratings in
Best's Key Rating Guide, (b) with respect to which such insurance company has
acknowledged in writing its payment obligation for such judgment, and (c) with
respect to which such insurance coverage is not subject to any deductible which
is in an amount which would cause the payment to be made by such insurance
company to be insufficient to reduce the outstanding judgment to below
$1,000,000.

                   (xii)   Failure of the Servicer and its Affiliates, on a
consolidated basis, to maintain a minimum tangible net worth of $35,000,000
(excluding the accounting effects of FASB Statement 133) plus (a) 100% of new
equity offerings and (b) 75% of consolidated net income for each fiscal quarter
commencing March 31, 2003 (without any offset for any net losses during any such
fiscal quarter); or

                   (xiii)  The Initial Servicer and its Affiliates, on a
consolidated basis, shall report negative net income in any two or more
consecutive fiscal quarters;

then, and in each and every case, so long as an Event of Servicing Termination
shall not have been remedied within any applicable period set forth above, the
Indenture Trustee shall, at the written direction of the Majority Holders, by
notice (the "SERVICER TERMINATION NOTICE") then given in writing to the
Servicer, terminate all, but not less than all, of the rights and obligations of
the Servicer under this Agreement. The Indenture Trustee shall furnish a copy of
any Servicer Termination Notice to the Rating Agencies.

                                      -26-
<Page>

In the event the Back-up Servicer is acting as Servicer hereunder, events
described in clauses (viii) through (xiii) above shall not constitute Events of
Servicing Termination in respect of the Back-up Servicer acting as Servicer
hereunder.

             (b)   On and after the time the Servicer receives a Servicer
Termination Notice pursuant to this Section 6.01, all authority and power of the
Servicer under this Agreement, whether with respect to the Notes or the
Contracts or otherwise, shall pass to and be vested in the Back-up Servicer and,
without limitation, the Back-up Servicer is hereby authorized and empowered
(which authority and power are coupled with an interest and are irrevocable) to
execute and deliver, on behalf of the predecessor Servicer, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do or
accomplish all other acts or things necessary or appropriate to effect the
purposes of such Servicer Termination Notice, whether to complete the transfer
of the Contracts and related documents or otherwise.

The predecessor Servicer agrees to cooperate with the Indenture Trustee and the
successor Servicer in effecting the termination of the responsibilities and
rights of the Back-up Servicer hereunder, including, without limitation,
providing the Back-up Servicer with access to its servicing system and records
with respect to the Contracts, and transferring to the Back-up Servicer for
administration by it of all cash amounts that shall at the time be held by the
predecessor Servicer for deposit, or shall have been deposited by the
predecessor Servicer, in the Collection Account or the Lockbox Account, or
thereafter shall be received with respect to Contracts, and in accordance
therewith, the Indenture Trustee shall have the right to receive distributions
of all Collections on deposit in the Lockbox Account. To assist the Back-up
Servicer in enforcing all rights under the Contracts, the predecessor Servicer,
at its own expense, shall transfer its electronic records relating to such
Contracts to the Back-up Servicer in such electronic form as the Back-up
Servicer may reasonably request and shall transfer the related Contract Files
and all other records, correspondence and documents relating to the Contracts
that it may possess to the Back-up Servicer in the manner and at such times as
the Back-up Servicer shall reasonably request.

             (c)   Following the occurrence of an Event of Servicing
Termination, but without limiting the rights of the Indenture Trustee or the
Majority Holders under any other provisions of the Transaction Documents, the
Majority Holders may direct the Indenture Trustee in writing, to conduct a
review of the Servicer's cash application procedures with respect to Collections
on the Contracts, including, without limitation, transfers from the Lockbox
Account to the Collection Account, and the Indenture Trustee hereby agrees to
conduct such review, or cause a third party to conduct such review, at the
expense of the Servicer on such basis as the Majority Holders shall reasonably
determine.

     Section 6.02  RESIGNATION OF SERVICER; BACK-UP SERVICER; APPOINTMENT OF
SUCCESSOR; LIMITATIONS ON LIABILITY.

             (a)   Upon the Servicer's receipt of notice of termination pursuant
to Section 6.01 or the Servicer's resignation pursuant to Section 5.04, the
Back-up Servicer shall be the successor in all respects to the Servicer in its
capacity as servicer under this Servicing Agreement (including the right to
withdraw funds from the Lockbox Account), and shall be subject to all the

                                      -27-
<Page>

responsibilities, duties and liabilities of the Servicer pursuant to this
Agreement; PROVIDED, HOWEVER, that BNY Asset Solutions LLC in its capacity as
Back-up Servicer, shall not be responsible for, and shall have no liability with
respect to, the acts or omissions of the Servicer or any prior servicer
occurring prior to the time that BNY Asset Solutions LLC becomes the Servicer
hereunder; and, PROVIDED FURTHER, that before becoming subject to all the
responsibilities, duties and liabilities of the Servicer hereunder, the Back-up
Servicer may require that satisfactory indemnity or other security be furnished
to protect it against all liability, except liability which is adjudicated to
have resulted from its negligence or willful misconduct. As compensation
therefor, the Back-up Servicer shall be entitled to such compensation, payable
out of the Collection Account, as the Servicer would have been entitled to under
this Agreement if no such notice of termination had been given.

             (b)   Notwithstanding subsection (a) above, BNY Asset Solutions LLC
may, if for any reason BNY Asset Solutions LLC shall be unwilling to act as
Back-up Servicer, or shall, if it shall be legally unable so to act, appoint, or
petition a court of competent jurisdiction to appoint, any established financial
institution reasonably acceptable to the Majority Holders, whose regular
business shall include the servicing of contracts comparable to the Contracts
and the appointment of which will not cause a downgrade in the ratings assigned
by the Rating Agencies to the Notes, as the successor to the Servicer under this
Agreement. BNY Asset Solutions LLC shall act as Back-up Servicer until a
successor is appointed in accordance herewith. In connection with such
appointment, the Indenture Trustee may make such arrangements for the
compensation of such successor, out of payments on the Contracts, as it and such
successor shall agree; PROVIDED, HOWEVER, that the Servicing Fee Rate shall not
be in excess of 0.75% per annum unless approved in writing by the Holders of at
least 66 2/3 percent of the Aggregate Outstanding Note Principal Balance of the
Notes. Pending appointment of a successor to the Servicer hereunder, BNY Asset
Solutions LLC shall act in such capacity, subject to the protections afforded
BNY Asset Solutions LLC in subsections (a) and (c) of this Section 6.02. The
Indenture Trustee and such successor shall take such action, consistent with
this Agreement, as shall be necessary to effectuate any such succession.
Notwithstanding anything else herein to the contrary, in no event shall the
Indenture Trustee be liable for any servicing fee or for any differential in the
amount of the servicing fee paid hereunder and the amount necessary to induce
any successor Servicer to act as successor Servicer under this Agreement and the
transactions set forth or provided for herein.

In the event the Back-up Servicer becomes the successor Servicer, it may at any
time resign and be discharged from the trusts hereby created by giving at least
60 days' written notice thereof to the Servicer, the Issuers, and each
Noteholder, which resignation will not become effective until such time as a
successor Servicer has been appointed in accordance with the provisions of this
Section 6.02. Upon receiving such notice of resignation, the Issuers shall
promptly appoint a successor Servicer, acceptable to the Majority Holders, by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Servicer and one copy to the successor Servicer. If
no successor Servicer shall have been so appointed and have accepted appointment
within 30 days after the giving of such notice of resignation, the Indenture
Trustee shall petition any court of competent jurisdiction for the appointment
of a successor Servicer.

                                      -28-
<Page>

             (c)   Notwithstanding any other provision of this Agreement, in the
event that BNY Asset Solutions LLC acts as the servicer in accordance with this
Section 6.02, it shall be entitled to terminate any existing subservicing
agreements and perform the duties required of the Servicer by entering into one
or more subservicing agreements with a subservicer selected by it with
reasonable care. The Indenture Trustee shall pay any subservicing fees to any
such subservicer engaged by it with the Servicing Fee.

             (d)   BNY Asset Solutions LLC, in its capacity as Back-up Servicer
or as Servicer, may resign from the duties and obligations hereby imposed on it
upon at least 60 days written notice to the Indenture Trustee and the
Noteholders; PROVIDED that BNY Asset Solutions LLC may not resign in its
capacity as Servicer until a successor Servicer is appointed pursuant to Section
6.02 hereof. If no successor Servicer shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the Indenture Trustee shall petition any court of competent
jurisdiction for the appointment of a successor Servicer.

             (e)   In its capacity as Back-up Servicer, the Back-up Servicer
shall be entitled to receive the Back-up Servicing Fee.

             (f)   Upon the resignation or termination of the Initial Servicer
and the assumption of its duties by the Back-up Servicer in accordance with this
Section 6.02, the Back-up Servicer shall no longer be entitled to receive the
Back-up Servicing Fee, and shall be entitled to receive the Servicer Fee which
shall be inclusive of all other amounts reimbursable pursuant to this Agreement.

     Section 6.03  NOTIFICATION TO NOTEHOLDERS. The Servicer shall promptly
notify a Responsible Officer of the Indenture Trustee and the Noteholders in
writing of any Event of Servicing Termination. Upon any termination of, or
appointment of a successor to, the Servicer pursuant to this Article VI, the
Indenture Trustee shall give prompt written notice thereof to the Noteholders at
their respective addresses appearing in the Register, the Issuers and the Rating
Agencies.

     Section 6.04  WAIVER OF PAST DEFAULTS. The Majority Holders may, on behalf
of the Noteholders, with notice to the Indenture Trustee, waive any default by
the Servicer in the performance of its obligations hereunder and its
consequences. Upon any such waiver of a past default, such default shall cease
to exist, and any Event of Servicing Termination arising therefrom shall be
deemed to have been remedied for every purpose of this Agreement. No such waiver
shall extend to any subsequent or other default or impair any right consequent
thereon except to the extent expressly waived. The Servicer shall promptly
deliver to each of the Rating Agencies notice of any such waiver.

     Section 6.05  EFFECTS OF TERMINATION OF SERVICER.

             (a)   Upon the appointment of the successor Servicer, the
predecessor Servicer shall immediately remit any Scheduled Payments, Final
Scheduled Payments, Liquidation Proceeds or other payments that it may receive
pursuant to any Contract or otherwise to the successor Servicer for the benefit
of the Indenture Trustee on behalf of the Noteholders after such date of
appointment.

                                      -29-
<Page>

             (b)   Subject to Section 6.02 hereof, after the delivery of a
Servicer Termination Notice, the predecessor Servicer shall have no further
rights or obligations with respect to the management or servicing of the Pledged
Property or the enforcement, custody or collection of the Contracts, and the
successor Servicer shall have all of such obligations, except that the
predecessor Servicer will transmit or cause to be transmitted directly to the
successor Servicer for the benefit of the Noteholders, promptly upon receipt and
in the same form in which received, any amounts held by the predecessor Servicer
(properly endorsed where required for the successor Servicer to collect them)
received as payments upon or otherwise in connection with the Contracts. The
predecessor Servicer's indemnification obligations pursuant to Section 5.01
hereof will survive the termination or resignation of the predecessor Servicer
but will not extend to any acts or omissions of a successor Servicer.

             (c)   An Event of Servicing Termination shall not affect the rights
and duties of the parties hereunder (including, but not limited to, the
obligations and indemnities of the Servicer pursuant to Article IV of the
Indenture and Section 5.01 hereof) other than those relating to the management,
servicing, custody or collection of the Contracts.

                                    ARTICLE 7

                            MISCELLANEOUS PROVISIONS

     Section 7.01  AMENDMENT.

             (a)   This Agreement may be amended from time to time by the
Issuers, the Servicer, the Back-up Servicer and the Indenture Trustee, without
the consent of any of the Noteholders, to cure any ambiguity herein; PROVIDED,
HOWEVER, that such action shall not, as evidenced by an Opinion of Counsel
acceptable to the Indenture Trustee, adversely affect in any respect the
interests of any Noteholder.

             (b)   This Agreement may also be amended from time to time by the
Servicer, the Issuers and the Indenture Trustee with the written consent of the
Majority Holders for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Noteholders; PROVIDED, HOWEVER, that no such
amendment shall (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, payments that are required to be made on any
Note without the written consent of the Holder of such Note or (ii) reduce the
aforesaid percentage required to consent to any such amendment, without the
written consent of the Holders of all Notes then outstanding.

             (c)   Prior to the effectiveness of any amendment under Section
7.01(a) or (b) hereof, the Rating Agencies shall have confirmed in writing their
respective ratings of the Notes.

             (d)   Promptly after the execution of any such amendment, the
Indenture Trustee shall furnish a written copy of the text of such amendment
(and any consent required with respect thereto) to each Noteholder and the
Rating Agencies.

                                      -30-
<Page>

             (e)   Approval of the particular form and substance of any proposed
amendment or consent shall be necessary for the consent of the Noteholders under
Section 7.01(b) hereof. The manner of obtaining such consents and of evidencing
the authorization of the execution thereof by the Noteholders shall be subject
to such reasonable requirements as the Indenture Trustee may prescribe.

             (f)   The Indenture Trustee shall be entitled to receive an
officer's certificate and an Opinion of Counsel to the effect that all
conditions precedent to the amendment of this Agreement have been satisfied. The
Indenture Trustee may, but shall not be obligated to, execute and deliver any
such amendment which affects the Indenture Trustee's rights, powers, immunities
or indemnifications hereunder.

     Section 7.02  COUNTERPARTS. For the purpose of facilitating the execution
of this Agreement and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute but
one and the same instrument.

     Section 7.03  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS OF
ANY STATE.

     Section 7.04  WAIVER OF JURY TRIAL. The Issuers, the Servicer, the
Originator and the Indenture Trustee each hereby waive any right to have a jury
participate in resolving any dispute, sounding in contract, tort, or otherwise
arising out of, connected with, related to, or in connection with this
agreement. Instead, any dispute resolved in court will be resolved in a bench
trial without a jury.

     Section 7.05  NOTICES. All demands, notices, instructions, directions and
communications hereunder (other than periodic communications of a routine nature
made in connection with the dissemination of information regarding the Pledged
Property, the Servicer and the Issuers required to be delivered hereunder, which
shall be delivered or mailed by first class mail or facsimile transmission)
shall be in writing, personally delivered or mailed by overnight courier, and
shall be deemed to have been duly given upon receipt (a) in the case of the
Servicer, at 60 State Street, Boston, Massachusetts, 02109-1803, (b) in the case
of the Originator, to HPSC, at 60 State Street, Boston, Massachusetts,
02109-1803, (c) in the case of the Issuers, if to LLC I at 60 State Street,
Suite 3520, Boston, Massachusetts 02109-1803 and if to LLC II at 60 State
Street, Suite 3520, Boston Massachusetts 02109-1803, with a copy to the
Originator as set forth in clause (b) above, (d) in the case of the Indenture
Trustee, at 2 North LaSalle Street, Suite 1020, Chicago, Illinois 60602,
Attention: Structured Finance (e) in the case of the Back-up Servicer, at 600 E.
Las Colinas Blvd., Suite 1300, Irving, Texas 75039, with a copy to BNY Asset
Solutions LLC, 6550 Rock Spring Drive, Suite 280, Bethseda, Maryland 20817,
Attention: ABS Servicing, (f) in the case of S&P, at 55 Water Street, 40th
Floor, New York, NY 10041, Attention: Asset Backed Surveillance, telephone (212)
438-2000, telecopy (212) 438-2661, and (g) in the case of Moody's, at 99 Church
Street, New York, New York

                                      -31-
<Page>

10007, Attention: ABS Monitoring Group, telephone (212) 553-0300, telecopy (212)
298-7139, email: ServiceReport@moodys.com. Any notice required or permitted to
be mailed to a Noteholder shall be given by first class mail or overnight
courier, postage prepaid, at the address of such Noteholder as shown in the Note
Register. Any notice so mailed within the time prescribed in this Agreement
shall be conclusively presumed to have been duly given on the fifth Business Day
following mailing, whether or not the Noteholder receives such notice. A copy of
each notice sent by any party to a Noteholder hereunder shall be promptly sent
by such party to each Rating Agency.

     Section 7.06  SEVERABILITY OF PROVISIONS. If any one or more of the
covenants, agreements, provisions, or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Notes or the
rights of the Holders thereof.

     Section 7.07  THIRD PARTY BENEFICIARIES. The parties hereto acknowledge and
agree that the Noteholders are intended third party beneficiaries of this
Agreement.

     Section 7.08  ASSIGNMENT. Notwithstanding anything to the contrary
contained herein, except as provided in Section 5.02 hereof, this Agreement may
not be assigned by the Servicer except with prior written consent of the
Majority Holders. Notice of any such assignment received by a Responsible
Officer of the Indenture Trustee shall be given to the Rating Agencies by the
Indenture Trustee.

     Section 7.09  BINDING EFFECT. This Agreement shall inure to the benefit of,
and shall be binding upon the Servicer, the Originator, the Issuers, the
Indenture Trustee and the Noteholders and their respective successors and
permitted assigns, subject, however, to the limitations contained in this
Agreement. This Agreement shall not inure to the benefit of any Person other
than the Issuers, the Servicer, the Indenture Trustee and the Noteholders.

     Section 7.10  SURVIVAL OF AGREEMENT. All covenants, agreements,
representations and warranties made herein and in the other documents delivered
pursuant hereto shall survive the pledge of the Pledged Property and the
issuance of the Notes and shall continue in full force and effect until payment
in full of the Notes and all amounts owing to the Indenture Trustee hereunder
and under the other Transaction Documents, as applicable.

     Section 7.11  CAPTIONS. The captions or headings in this Agreement are for
convenience only and in no way define, limit or describe the scope or intent of
any provisions or sections of this Agreement.

     Section 7.12  EXHIBITS. The exhibits to this Agreement are hereby
incorporated herein and made a part hereof and are an integral part of this
Agreement.

     Section 7.13  CALCULATIONS. Except as otherwise provided in this Agreement,
including, without limitation, with respect to the calculation of interest on
the Floating Rate Notes all interest rate calculations under this Agreement,
including those with respect to the Contracts,

                                      -32-
<Page>

will be made on the basis of a 360-day year and twelve 30-day months and will be
carried out to at least seven decimal places.

     Section 7.14  NO PROCEEDINGS. The Servicer, the Originator and the
Indenture Trustee each hereby agrees that it will not directly or indirectly
institute, or cause to be instituted, against any of the Issuers or the
Transferors any bankruptcy or insolvency proceeding so long as there shall not
have elapsed one year plus one day since the maturity date of the latest
maturing securities of either of the Issuers.

     Section 7.15  RIGHTS OF INDENTURE TRUSTEE. The Indenture Trustee shall be
afforded the same rights, protections, immunities and indemnities set forth in
the Indenture as if specifically set forth herein.

                                      -33-
<Page>

IN WITNESS WHEREOF, the Servicer, the Originator, the Issuers and the Indenture
Trustee have caused this Agreement to be duly executed by their respective
officers, all as of the day and year first above written.

                                HPSC GLOUCESTER FUNDING 2003-1 LLC I, as Issuer

                                By:  /s/ Rene Lefebvre
                                   ---------------------------
                                   Name: Rene Lefebvre
                                   Title: Manager

                                HPSC GLOUCESTER FUNDING 2003-1 LLC II, as Issuer

                                By:  /s/ Rene Lefebvre
                                   ---------------------------
                                   Name: Rene Lefebvre
                                   Title: Manager

                                HPSC, INC., as Servicer

                                By:  /s/ Rene Lefebvre
                                   ---------------------------
                                   Name: Rene Lefebvre
                                   Title: Chief Financial Officer

                                HPSC, INC., as Originator

                                By:  /s/ Rene Lefebvre
                                   ---------------------------
                                   Name: Rene Lefebvre
                                   Title: Chief Financial Officer

<Page>

                                BNY MIDWEST TRUST COMPANY, not in its
                                  individual capacity
                                  but solely as Indenture Trustee

                                By:  /s/ M. Onischak
                                   ---------------------------
                                   Name: Marian Onischak
                                   Title: Assistant Vice President

                                BNY ASSET SOLUTIONS LLC, as Back-up Servicer

                                By:  /s/ M.F. Cocanougher
                                   ---------------------------
                                   Name: Michael F. Cocanougher
                                   Title:  Managing Director

                     [Signature Page to Servicing Agreement]

<Page>

                                                                       EXHIBIT A

                            FORM OF MONTHLY STATEMENT

                                       A-1
<Page>

                                                                       EXHIBIT B

                    FORM OF REQUEST FOR RELEASE OF DOCUMENTS

                                                 [Date]

BNY Midwest Trust Company
2 North LaSalle Street, Suite 1020
Chicago, Illinois 60602

              Re:   Servicing Agreement, dated as of [ ], 2003, among HPSC
                    Gloucester Funding 2003-1 LLC I and HPSC Gloucester Funding
                    2003-1 LLC II, as Issuers, HPSC, Inc., as Servicer, HPSC,
                    Inc. as Originator, and BNY Midwest Trust Company, as
                    Indenture Trustee
                    ------------------------------------------------------------

In connection with the administration of the pool of Contracts held by BNY
Midwest Trust Company, as Indenture Trustee, for the benefit of the Noteholders
we request the release, and acknowledge receipt, of the (Contract File/[specify
document]) for the Contract described below, for the reason indicated.

OBLIGOR'S NAME, ADDRESS & ZIP CODE:

CONTRACT NUMBER:

REASON FOR REQUESTING DOCUMENTS (check one)

/ /  1.   Contract Paid in Full.

              (Servicer hereby certifies that all amounts received in
              connection therewith have been credited to the Collection Account)

/ /  2.   Contract Liquidated.

              (Servicer hereby certifies that all proceeds of foreclosure,
              insurance or other liquidation have been received and credited to
              the Collection Account)

/ /  3.   Contract in Foreclosure.

                                       B-1
<Page>

/ /  4.   Contract Purchased. (Servicer hereby certifies that the Purchase
          Amount has been deposited in the Collection Account)

/ /  5.   Contract Substituted.

/ /  6.   Other (explain)____________________________________________________

If box 1 or 2 above is checked, and if all or part of the Contract File was
previously released to us, please release to us our previous receipt on file
with you, as well as any additional documents in your possession relating to the
above specified Contract.

If box 3, 4, 5 or 6 above is checked, upon our return of all of the above
documents to the Indenture Trustee, please acknowledge your receipt by signing
in the space indicated below, and returning this form.

                                           HPSC, INC., as Servicer

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

Documents returned to Indenture Trustee:

BNY MIDWEST TRUST COMPANY,
    as Indenture Trustee

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

     Date:

                                       B-2<Page>

                                                                    Exhibit 10.6

                                CUSTODY AGREEMENT

                                      among

 HPSC Gloucester Funding 2003-1 LLC I and HPSC Gloucester Funding 2003-1 LLC II,
                                   as Issuers

                                       and

                           BNY Midwest Trust Company,

                              as Indenture Trustee

                                       and

                   Iron Mountain Information Management, Inc.,
                                  as Custodian

                                       and

                                   HPSC, Inc.

                                   as Servicer

                           dated as of March 31, 2003

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                        PAGE
<S>                                                                                                        <C>
ARTICLE I.    DELIVERY OF DOCUMENTS........................................................................1
     Section 1.1.   Documents to be delivered by Issuers to Custodian......................................1

ARTICLE II.   CAPACITY OF CUSTODIAN........................................................................2

     Section 2.1.   Custodian as Custodian and Agent of Indenture Trustee..................................2

ARTICLE III.  CERTIFICATION BY CUSTODIAN...................................................................2

     Section 3.1.   Contract File Certification............................................................2
     Section 3.2.   No Further Obligations.................................................................3

ARTICLE IV.   REPRESENTATIONS AND WARRANTIES: LIMITATION OF LIABILITY......................................3

     Section 4.1.   Representations and Warranties of Custodian............................................3
     Section 4.2.   Limitation of Liability; No Assignment.................................................3

ARTICLE V.    MISCELLANEOUS................................................................................4

     Section 5.1.   Release of Documents...................................................................4
     Section 5.2.   Custodian's Fees.......................................................................6
     Section 5.3.   Discharge of Custodian.................................................................6
     Section 5.4.   Termination of Custodian's Obligations.................................................7
     Section 5.5.   Access to Documents....................................................................7
     Section 5.6.   Insurance..............................................................................7
     Section 5.7.   Contract File Schedules................................................................7
     Section 5.8.   Copies of Contract Files...............................................................7
     Section 5.9.   No Liens or Encumbrances of Contracts..................................................7
     Section 5.10.  Adverse Interests......................................................................8
     Section 5.11.  Authorized Representatives.............................................................8
     Section 5.12.  Indemnification........................................................................8
     Section 5.13.  Execution in Counterparts..............................................................9
     Section 5.14.  Assignment by Indenture Trustee........................................................9
     Section 5.15.  Termination of this Agreement..........................................................9
     Section 5.16.  Waivers................................................................................9
     Section 5.17.  Effect of Invalidity of Provisions.....................................................9
</Table>

                                       -i-
<Page>

                                TABLE OF CONTENTS
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                        PAGE
<S>                                                                                                       <C>
     Section 5.18.  Entire Agreement......................................................................10
     Section 5.19.  Binding Effect: Governing Law.........................................................10
     Section 5.20.  Notices...............................................................................10
     Section 5.21.  Exhibits..............................................................................11
     Section 5.22.  SUBMISSION TO JURISDICTION:  WAIVER OF TRIAL BY JURY..................................11
     Section 5.23.  Representation by Counsel.............................................................12
     Section 5.24.  Construction..........................................................................12
     Section 5.25.  Rights of the Indenture Trustee.......................................................12
</Table>

                                      -ii-
<Page>

Exhibit 1:    Monthly Supplemental Report

Exhibit 2:    Request for Release of Documents

Exhibit 3:    Authorized Officers of Indenture Trustee

Exhibit 4:    Authorized Officers of Issuers

<Page>

                                CUSTODY AGREEMENT

     THIS CUSTODY AGREEMENT, dated as of the date set forth on the cover page
hereof, is made and entered into among HPSC Gloucester Funding 2003-1 LLC I and
HPSC Gloucester Funding 2003-1 LLC II (each an "ISSUER" and collectively, the
"ISSUERS"), BNY Midwest Trust Company, as Indenture Trustee (the "INDENTURE
TRUSTEE") under an Indenture, dated as of March 31, 2003, among the Issuers,
HPSC, Inc. as Servicer (the "SERVICER") and the Indenture Trustee (the
"INDENTURE"), and Iron Mountain Information Management, Inc. (the "CUSTODIAN")
and the Servicer.

                                   DEFINITIONS

     Unless otherwise indicated, capitalized terms, when used in this Agreement,
shall have the meanings set forth in Annex A to the Indenture.

                                    AGREEMENT

                                    RECITALS

     WHEREAS, pursuant to the terms of the Transaction Documents, the Issuers
are issuing seven classes of Notes which are secured by Pledged Property;

     WHEREAS, the Indenture Trustee holds a security interest in the Pledged
Property for the benefit of the Noteholders;

     WHEREAS, the Indenture Trustee wishes to designate the Custodian as its
agent for purposes of maintaining possession of the Contract Files containing
the Pledged Property;

     WHEREAS, the Custodian is willing to act as custodian and agent;

     NOW, THEREFORE, in consideration of the above Recitals and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

                                   ARTICLE I.

                              DELIVERY OF DOCUMENTS

     Section 1.1.      DOCUMENTS TO BE DELIVERED BY ISSUERS TO CUSTODIAN.

            (a)   The Issuers have delivered to the Custodian the Contract Files
identified in the schedule of numbered Contract Files attached hereto as
SCHEDULE A ("INITIAL CONTRACT FILE SCHEDULE"). The Custodian shall hold, as
custodian and agent on behalf of Indenture Trustee, the Contract Files
identified in the Initial Contract File Schedule.

<Page>

            (b)   From time to time after the date hereof, the Issuers may
deliver to Custodian additional Contract Files. Additional Contract Files shall
be listed on subsequent schedules of numbered Contract Files (each a "SUBSEQUENT
CONTRACT FILE SCHEDULE") that shall also be delivered to the Custodian and the
Indenture Trustee.

            (c)   The Issuers shall designate on the Initial Contract File
Schedule and each Subsequent Contract File Schedule the name of the Issuer which
owns the Contract File.

                                   ARTICLE II.

                              CAPACITY OF CUSTODIAN

     Section 2.1.      CUSTODIAN AS CUSTODIAN AND AGENT OF INDENTURE TRUSTEE.
The Indenture Trustee hereby appoints the Custodian, in its independent
corporate capacity, as the custodian and agent of the Indenture Trustee, and the
Custodian hereby accepts and agrees to act as custodian and agent for the
Indenture Trustee and any successor to or assignee of the Indenture Trustee in
accordance with the terms and conditions of this Agreement. With respect to each
Contract File delivered to the Custodian, the Custodian is solely and
exclusively the custodian and agent for the Indenture Trustee for all purposes
including, but not limited to, holding the Contract Files for the Indenture
Trustee for purposes of perfection of the Indenture Trustee's security interest
therein. The Custodian shall hold in its possession at 1 Old Forge Hill Road,
Franklin, MA 02038 or at any other facility specified in writing to the
Indenture Trustee, located in the Commonwealth of Massachusetts from which it
provides custodial services, all Contract Files received by the Custodian from
the Issuers from time to time for the sole and exclusive use and benefit of the
Indenture Trustee and, except as otherwise provided herein, shall make
disposition thereof only in accordance with the written instructions of the
Indenture Trustee. The Custodian shall segregate and maintain continuous custody
of all documents constituting Contract Files received by it in secure
facilities, equipped with fire detection and fire suppression features, all in
accordance with customary standards for such custody.

                                  ARTICLE III.

                           CERTIFICATION BY CUSTODIAN

     Section 3.1.      CONTRACT FILE CERTIFICATION.

            (a)   The Custodian certifies that it has received the numbered
Contract Files shown on the Initial Contract File Schedule and will hereafter
from time to time, and in any case, with respect to each Subsequent Contract and
each Substitute Contract, prior to the related Subsequent Transfer Date and
Substitute Transfer Date, as applicable, provide similar certification upon
receiving additional Contract Files pursuant to Subsequent Contract File
Schedules. On the date hereof, the Custodian shall deliver a receipt (a "CUSTODY
RECEIPT") for the Contract Files related to the Initial Contracts to the
Indenture Trustee. With respect to each Subsequent Transfer Date and Substitute
Transfer, the Custodian shall deliver a Custody Receipt to the Indenture Trustee
with respect to the Subsequent Contracts and Substitute Contracts, as
applicable.

                                       -2-
<Page>

            (b)   On the twenty-fifth day of each calendar month (the Business
Day immediately following the twenty-fifth day of each calendar month if such
twenty-fifth day is not a Business Day), the Custodian shall send to the
Indenture Trustee a list of all Contracts that have been received by the
Custodian during the period from the date of the latest list to the date of such
list (by facsimile or otherwise) in substantially the form of EXHIBIT 1 attached
hereto ("MONTHLY SUPPLEMENTAL REPORT").

     Section 3.2.      NO FURTHER OBLIGATIONS. The Custodian shall have no
obligation to verify or review the contents of any Contract File.

                                   ARTICLE IV.

                         REPRESENTATIONS AND WARRANTIES:
                             LIMITATION OF LIABILITY

     Section 4.1.      REPRESENTATIONS AND WARRANTIES OF CUSTODIAN. The
Custodian represents and warrants to the Indenture Trustee and the Issuers that:

            (a)   the Custodian (i) is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation and (ii)
has full corporate power and authority to conduct its business and affairs as a
Custodian; and

            (b)   the Custodian does not control, is not controlled by nor is
under common control with the Issuers or any Transferors; and

            (c)   this Agreement, when executed and delivered by the Custodian,
will constitute the valid, legal and binding obligation of the Custodian,
enforceable against the Custodian in accordance with its terms, except as the
enforcement thereof may be limited by applicable receivership or similar debtor
relief laws and that certain equitable remedies may not be available regardless
of whether enforcement is sought in equity or at law; and

            (d)   the Custodian maintains all documents constituting Contract
Files received by it in secure facilities, equipped with fire detection and fire
suppression features, in accordance with customary standards of the records
management industry.

     Section 4.2.      LIMITATION OF LIABILITY; NO ASSIGNMENT. The duties and
obligations of the Custodian shall be determined solely by the express
provisions of this Agreement. The Custodian shall not be liable except for the
performance of such duties and obligations as are specifically set forth in this
Agreement or as set forth in a written amendment to this Agreement executed by
the parties hereto or their successors or assigns. The Custodian shall not
assign, transfer, pledge or grant a security interest in any of its rights,
benefits or privileges hereunder, nor shall the Custodian delegate or appoint
any other person or entity to perform or carry out any of its duties,
responsibilities or obligations under this Agreement. Any act or instrument
purporting to effect any such assignment, transfer, pledge, grant, delegation or
appointment shall be void. No representations, warranties, covenants (other than
those expressly made by the Custodian in this Agreement) or obligations of the
Custodian shall be implied with respect to this Agreement or the Custodian's
services hereunder. Without limiting the generality of the foregoing, the
Custodian:

                                       -3-
<Page>

            (a)   shall have no duties or obligations other than those
specifically set forth herein or as may subsequently be agreed in writing by the
parties hereto and shall use the same degree of care and skill as is reasonably
expected of professional record storage providers;

            (b)   will be regarded as making no representations and having no
responsibilities (except as expressly set forth herein) as to the validity,
sufficiency, value, genuineness, ownership or transferability of any contents
within the Contract Files, and will not be required to and will not make any
representations as to the validity, value or genuineness of such contents;

            (c)   shall not be obligated to take any legal action hereunder that
might in its judgment involve any expense or liability unless it has been
furnished with reasonable indemnity by the Issuers or the Servicer;

            (d)   may rely on and shall be protected when acting in good faith
upon the written instructions of the Indenture Trustee and such employees and
representatives of the Indenture Trustee, as the Indenture Trustee may
hereinafter designate in writing;

            (e)   the Custodian may, in its reasonable judgment, consult with
the Custodian's in-house counsel or any other counsel with regard to legal
questions arising out of or in connection with this Agreement, and the advice or
opinion of such counsel shall be full and complete authorization and protection
in respect of any action taken, omitted or suffered by the Custodian in
reasonable reliance, in good faith, and in accordance therewith.

            (f)   shall not be liable for any error of judgment, or for any act
done or step taken or omitted by it, in good faith, or for any mistake of fact
or law or for anything that it may do or refrain from doing in connection
therewith, except in the case of negligent performance or omission, intentional
failure to perform or intentional omission; and

            (g)   shall not be liable for the loss or destruction of, or damage
to, Contracts in its custody unless such loss, damage or destruction is caused
by the negligence of the Custodian or its employees or agents; in the event of
loss, damage or destruction due to such negligence, the Custodian's liability
shall be limited to $1.00 per Contract.

            (h)   may execute any of the rights or powers hereunder or perform
any duties hereunder either directly or through agents or attorneys, provided,
however, that the execution of such trusts or powers by any such agents or
attorneys shall not diminish, or relieve the Custodian for, responsibility
therefor to the same degree as if the Custodian itself had executed such trusts
or powers.

                                   ARTICLE V.

                                  MISCELLANEOUS

     Section 5.1.      RELEASE OF DOCUMENTS. In the event that any specific
Contract File is required by the Servicer, either (a) because such Contract File
contains a Contract that has been paid in full, is a Purchased Contract or is a
Contract in respect to which a Substitute Contract has been submitted in its
place and is to be released by the Servicer, to the maker of the Contract, or

                                       -4-
<Page>

(b) to permit the Servicer to foreclose upon the collateral securing the
Contract and to continue default proceedings, or (c) for any other purpose(s)
consistent with the terms hereof, the Servicer shall send to the Custodian a
Request for Release in the form of EXHIBIT 2 ("REQUEST FOR RELEASE"),
appropriately completed and executed by the Servicer. If the Request for Release
is received by 3:00pm eastern time the Custodian shall, on the same day as
received, send by facsimile or overnight courier a copy of such Request for
Release to the Indenture Trustee. If such Request for Release is received after
3:00pm eastern time, the Custodian shall send by facsimile or overnight courier
of such Request for Release to the Indenture Trustee by the close of business on
the next business day. If such Request for Release is for either of the purposes
set forth in clauses (a) or (b) above, the Custodian may release the Contract
File so requested to the Servicer, on the fourth Business Day following receipt
by the Custodian of such Request for Release unless the Custodian is notified by
the Indenture Trustee of the Indenture Trustee's objection to such release prior
to such release by the Custodian. If such Request for Release is for a purpose
referred to in clause (c) above, in the event that the Indenture Trustee
consents in writing to the release of such Contract File, the Indenture Trustee
will return a copy of the applicable Request for Release to the Custodian with
such consent indicated thereon. Any such written consent of the Indenture
Trustee, if required hereunder, shall be obtained from the Indenture Trustee
within twenty (20) Business Days of receipt of such Request for Release by the
Indenture Trustee. Notwithstanding anything to the contrary herein, the
Custodian shall in no event release to the Servicer any Contract Files without
the written authorization of the Indenture Trustee if the applicable Request for
Release sets forth, as the basis for such release, any purpose other than one of
the purposes set forth in clauses (a) or (b) above. The Servicer shall promptly
return to the Custodian each requested Contract File when the Servicer's need
therefor in connection with such foreclosure, purchase, substitution or
servicing no longer exists, unless the Contract has been paid in full, is a
Purchased Contract or is a Contract with respect to which a Substitute Contract
has been submitted in its place, in which case, the Servicer may retain such
Contract File. Any trust receipt executed by the Servicer for Contract Files
released to the Servicer hereunder shall reflect that the Servicer holds such
documents as custodian for the Custodian pursuant to this Agreement.

     Notwithstanding anything to the contrary set forth herein, in no event
shall the Custodian release to the Servicer any Contract File in the event that
Contract Files relating to 10% or more of the Contracts have been previously
released to the Servicer and are still held by the Servicer under outstanding
Requests for Release unless the Indenture Trustee has obtained the prior written
consent of the Majority Holders. This limitation shall not apply to the release
of Contract Files pursuant to Clause (a) of this Section 5.1. The Servicer may
hold and hereby acknowledges that it shall hold any Contract Files and all other
Pledged Property that it may from time to time receive hereunder as custodian
for the Custodian. To the extent the Servicer as agent of the Custodian,
Indenture Trustee and the Issuers, holds any Contract File or other Pledged
Property, the Servicer shall do so in accordance with the Servicing Standard as
such standard applies to servicers acting as custodial agents. Upon request of
the Indenture Trustee or the Custodian, the Servicer shall within two (2)
Business Days return any Contract File to the Custodian. The Servicer shall
promptly report to the Custodian the loss by it of all or part of any Contract
File previously provided to it by the Custodian and shall promptly take
appropriate action to remedy any such loss. In such custodial capacity, the
Servicer shall have and perform the following powers and duties:

                                       -5-
<Page>

            5.1.1   hold the Contracts and Contract Files that it may from time
to time receive hereunder from the Custodian for the benefit of the Issuers and
the Noteholders, maintain accurate records pertaining to each Contract to enable
it to comply with the terms and conditions of the Indenture and this Agreement,
and maintain a current inventory thereof;

            5.1.2   implement policies and procedures in accordance with the
Servicer's normal business practices with respect to the handling and custody of
such Contract Files and consistent with the Servicing Standard so that the
integrity and physical possession of such Contract Files will be maintained; and

            5.1.3   take all other actions, in accordance with the Servicing
Standard, in connection with maintaining custody of such Contract Files on
behalf of the Custodian.

            5.1.4   Acting as custodian of such Contract Files pursuant to this
Agreement, the Servicer agrees that it does not and will not have or assert any
beneficial ownership interest in the Contracts or the Contract Files.

            5.1.5   The Servicer agrees to maintain any Contract Files that it
may from time to time receive from the Custodian at its office located in
Boston, Massachusetts, or at such other offices of the Servicer as shall from
time to time be identified by prior written notice to the Indenture Trustee, the
Custodian and the Noteholders.

     Section 5.2.      CUSTODIAN'S FEES. The Servicer agrees to pay the
Custodian, and shall be solely liable for, the fees described on SCHEDULE B
attached hereto (collectively, the "CUSTODIAN FEES"). No party hereto shall have
any obligation to pay any other fees to, or to reimburse any costs or expenses
of, the Custodian with respect to the Custodian's obligations and duties created
herein other than the Custodian Fees. The Custodian shall have the right to
terminate its obligations under this Agreement if the Servicer fails to pay the
Custodian Fees within thirty (30) days after receiving notice that the Custodian
Fees are overdue, provided that the Custodian shall give notice of its intention
to terminate this Agreement. Upon receipt of such notice to the Indenture
Trustee, the Indenture Trustee shall have the right, but not the obligation, to
pay within thirty (30) days the Custodian Fees due to Custodian hereunder. If
Custodian Fees due to the Custodian are paid in full, this Agreement shall
continue in full force and effect.

     Section 5.3.      DISCHARGE OF CUSTODIAN. Upon thirty (30) days' written
notice, the Indenture Trustee, at the written direction of an Issuer, may remove
and discharge the Custodian, or any successor Custodian thereafter appointed,
from the performance of its duties under this Agreement by written notice from
the Indenture Trustee to the Custodian or the successor Custodian, with a copy
of such notice to the Issuers. Having given notice of such removal, the
Indenture Trustee shall promptly appoint by written instrument a successor the
Custodian. One original counterpart of such instrument shall be delivered to the
Indenture Trustee, one copy shall be delivered to each Issuer, and one copy
shall be delivered to the successor Custodian. In the event of any such removal,
the Custodian shall promptly transfer to the successor Custodian, as directed by
the Indenture Trustee, all of the Contract Files being administered under this
Agreement.

                                       -6-
<Page>

     Section 5.4.      TERMINATION OF CUSTODIAN'S OBLIGATIONS. The Custodian may
terminate its obligations under this Agreement upon at least sixty (60) days'
written notice to the Issuers and the Indenture Trustee. In the event of such
termination, the Issuers shall appoint a successor Custodian, subject to
approval by the Indenture Trustee. If the Issuers are unable to appoint a
successor Custodian within a reasonable period of time, the Indenture Trustee,
acting at the written direction of the Majority Holders, shall appoint a
successor Custodian or the Indenture Trustee shall direct the Custodian to
deliver the Contract Files to the Indenture Trustee itself. The payment of such
successor Custodian's fees and expenses shall be the sole responsibility of the
Servicer. Upon such appointment, the Custodian shall promptly transfer to the
successor Custodian, as directed, all the Contract Files being administered
under this Agreement. The Custodian's obligations hereunder shall not in any
event be terminated until all the Contract Files have been delivered to the
successor Custodian or to the Indenture Trustee.

     Section 5.5.      ACCESS TO DOCUMENTS. Upon reasonable prior written notice
to the Custodian, by an Authorized Representative (as hereinafter defined), the
Indenture Trustee and/or the Issuers and their agents, accountants, attorneys
and the auditors will be permitted during normal business hours to examine the
Contract Files. Access to the Contract Files under this Section will be subject
to retrieval and refile charges as set forth in Schedule B, as well as any other
costs associated with services requested by the entity inspecting the Contract
Files (i.e. copying, faxing).

     Section 5.6.      INSURANCE. The Custodian shall, at its own expense,
maintain at all times during the existence of this Agreement and keep in full
force and effect (a) crime insurance, including coverage for the theft of
documents and forgery, and (b) professional liability insurance covering the
risk of errors and omissions. The crime insurance shall be in an amount not less
than $2,000,000, and the professional liability insurance shall be in an amount
not less than $5,000,000 with standard coverage and subject to deductibles, as
are customary for insurance typically maintained by custodians in the record
management industry. A certificate of the respective insurer as to each such
policy shall be furnished to the Indenture Trustee, containing the insured's
statement or endorsement that such insurance shall not terminate prior to
receipt by the Indenture Trustee, by registered mail, of ten (10) days' notice
thereof.

     Section 5.7.      CONTRACT FILE SCHEDULES. Upon the request of the
Indenture Trustee at any time, the Custodian shall provide to the Indenture
Trustee the Initial Contract File Schedule and each Subsequent Contract File
Schedule.

     Section 5.8.      COPIES OF CONTRACT FILES. Upon the request of the
Indenture Trustee for a particular numbered Contract File and at the cost and
expense of the Indenture Trustee, the Custodian shall provide the Indenture
Trustee with a copy of the contents of the requested Contract File.

     Section 5.9.      NO LIENS OR ENCUMBRANCES OF CONTRACTS. In order to
provide security to the Custodian for any overdue Custodian Fees which may be
owed to the Custodian by the Servicer, the Servicer will post a $1000.00
security deposit with the Custodian ("Security Deposit"). The Custodian hereby
agrees not to assert any statutory or possessory liens or encumbrances of any
kind with respect to the Contracts held by it, and hereby waives all such liens
and encumbrances; except that if the Servicer is in arrears of payment of the
Custodian Fees

                                       -7-
<Page>

to the Custodian by forty-five (45) days, the Custodian shall notify the
Indenture Trustee of such delinquency and of the Indenture Trustee's right to
cure the delinquency and may use the Security Deposit to cure the delinquency.
If the delinquency is not fully cured within sixty (60) days of the missed or
partial payment, the Custodian shall have the right to assert statutory or
possessory liens or encumbrances of any kind with respect to the Contracts held
by it. Specifically, Custodian may refuse withdrawal of original Contract Files
from the Premises until such outstanding invoices are fully paid.

     Section 5.10.     ADVERSE INTERESTS. By execution of this Agreement, the
Custodian represents, warrants and covenants that it does not currently hold,
and during the existence of this Agreement shall not hold, any adverse interest,
by way of security or otherwise, in any Contract File, and hereby waives and
releases any such interest that it may have in any Contract File as of the date
hereof. Notwithstanding any other provisions of this Agreement and without
limiting the generality of the foregoing, the Custodian shall not at any time
exercise or seek to enforce any claim, right or remedy, including any statutory
or common law rights of setoff, if any, that the Custodian may otherwise have
against all or any part of the Contract File or proceeds thereof.

     Section 5.11.     AUTHORIZED REPRESENTATIVES. Each authorized
representative (an "AUTHORIZED REPRESENTATIVE") of the Indenture Trustee is
authorized to give and receive notices, requests and instructions and to deliver
certificates and documents in connection with this Agreement on behalf of the
Indenture Trustee, and the specimen signature for each such Authorized
Representative of the Indenture Trustee initially authorized hereunder is set
forth on EXHIBIT 3 hereof. From time to time, the Indenture Trustee shall
deliver to the Custodian a revised EXHIBIT 3, reflecting changes in the
information previously given, but the Custodian shall be entitled to rely
conclusively on the last EXHIBIT 3 until receipt of a superseding EXHIBIT 3. To
the extent expressly permitted in this Agreement, each Authorized Representative
of the Issuers is authorized to give and receive notices, requests and
instructions and to deliver certificates and documents in connection with this
Agreement on behalf of the Issuers and the specimen signature for each such
Authorized Representative of the Issuers initially authorized hereunder is set
forth on EXHIBIT 3 hereof. From time to time, the Issuers shall deliver to the
Custodian a revised EXHIBIT 3, reflecting changes in the information previously
given, but the Custodian shall be entitled to rely conclusively on the last
EXHIBIT 3 until receipt of a superseding EXHIBIT 4.

     Section 5.12.     INDEMNIFICATION. The Custodian hereby agrees to indemnify
and hold the Issuers and the Indenture Trustee, the Noteholders, their
shareholders, directors, officers, employees, agents, successors and assigns,
harmless from and against and reimburse them for any and all losses, claims,
demands, obligations, damages, injuries (to persons, property or natural
resources), penalties, stamp or other similar taxes, suits, causes of action, or
other legal proceedings, judgments, costs, liabilities and/or expenses,
including all reasonable attorney's and agent's fees and expenses, incurred by
the Issuers or the Indenture Trustee of whatever kind or nature regardless of
their merit, demanded, asserted or claimed against the Indenture Trustee and
resulting solely from the Custodian's negligence, willful misconduct or failure
to perform its obligations hereunder, or a breach of any representation or
warranty by the Custodian contained in this Agreement. The Issuers hereby agree
to indemnify and hold the Custodian, its directors, officers, employees, agents,
successors and assigns, harmless from and against any and all losses, claims,
demands, damages, causes of action, or other legal proceedings, judgments,
costs,

                                       -8-
<Page>

liabilities and/or expenses, including reasonable attorney's fees incurred by
the Custodian and resulting from the Issuers' negligence, willful misconduct or
failure to perform their obligations hereunder or other breach by the Issuers of
this Agreement. The foregoing indemnifications set forth in this SECTION 5.11
shall survive any termination of this Agreement or the earlier resignation or
removal of the Custodian. For purposes of this Agreement and without limitation
as to what constitutes negligence, the Custodian's inability to produce a
Contract File within five (5) Business Days after required or requested by the
Indenture Trustee hereunder shall constitute negligence; provided, that (i) such
Contract File is not outstanding pursuant to a Request for Release or otherwise
as permitted in this Agreement and provided that the Custodian's inability to
produce such Contract File is not due to events beyond the reasonable control of
Custodian (e.g., natural disaster, transmission failure, war or insurrection).

     Section 5.13.     EXECUTION IN COUNTERPARTS. For the purpose of
facilitating the execution of this Agreement and for other purposes, this
Agreement may be executed simultaneously in any number of counterparts, each of
which shall be deemed to be an original, and together shall constitute and be
one and the same instrument.

     Section 5.14.     ASSIGNMENT BY INDENTURE TRUSTEE. The Indenture Trustee
shall have the right, without the consent of the Custodian or the Issuers, to
assign to any successor indenture trustee, in whole or in part, its interests
under this Agreement in all of the Contract Files, and designate any agent or
representative to exercise any rights of the Indenture Trustee, hereunder, and
the assignee or designee shall succeed to the rights and obligations hereunder
of the Indenture Trustee with respect to such Contract Files. All references to
the Indenture Trustee shall be deemed to include its assignee or designee.
Notwithstanding anything to the contrary contained in Section 4.2, Custodian
shall have the right, at any time during the term of this Agreement, to assign
its rights and responsibilities under this Agreement to any entity controlled
by, under common control with, or controlling Custodian. Custodian shall also
have the right to assign its rights and obligations under this Agreement to any
entity which is a successor by merger to Custodian.

     Section 5.15.     TERMINATION OF THIS AGREEMENT. This Agreement shall
terminate upon the earlier of the repayment in full of all amount owing to
holders of the Notes and the payment of all other amounts required under the
Indenture and under the other Transaction Documents.

     Section 5.16.     WAIVERS. Neither the failure nor any delay on the part of
any party hereto to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or any other right, remedy, power or privilege, nor shall
any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party or parties purportedly granting such
waiver.

     Section 5.17.     EFFECT OF INVALIDITY OF PROVISIONS. The provisions of
this Agreement are independent of and severable from each other, and no
provision shall be affected or rendered invalid or unenforceable by virtue of
the fact that for any reason any other provision or provisions may be invalid or
unenforceable in whole or in part.

                                       -9-
<Page>

     Section 5.18.     ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement and understanding of the parties with respect to the matters and
transactions contemplated by this Agreement and supersedes any prior agreement
and understandings with respect to those matters and transactions.

     Section 5.19.     BINDING EFFECT: GOVERNING LAW. This Agreement shall be
binding and inure to the benefit of the parties hereto and their respective
successors and assigns; provided, however, that neither the Issuers nor the
Custodian may assign this Agreement or any of its rights or obligations
hereunder without the prior written consent of the Indenture Trustee. This
Agreement shall be construed in accordance with, and governed by the laws of the
Commonwealth of Massachusetts, without giving effect to the conflict of law
principles thereof

     Section 5.20.     NOTICES. All notices, requests or demands required or
permitted to be given hereunder shall be in writing, and shall be deemed
effective (a) upon hand delivery, if hand delivered; (b) one (1) business day
after such are deposited for delivery via Federal Express or other nationally
recognized overnight courier service; or (c) three (3) business days after such
are deposited in the United States mails, certified or registered mail all with
delivery charges and/or postage prepaid, and addressed as shown below, or to
such other address as either party may, from time to time, designate in writing.
Written notice may be given by facsimile to the facsimile number shown below, or
to such other facsimile number as either party may designate, from time to time,
in writing, provided that such notice shall not be deemed effective unless it is
confirmed within 24 hours by hand delivery, courier delivery or mailing of a
copy of such notice in accordance with the requirements set forth above.
Notwithstanding the foregoing, notices and requests in the normal course of
business under this Agreement shall be addressed as the parties shall notify
each other from time to time.

            IF TO THE ISSUERS:

            HPSC Gloucester Funding 2003-1 LLC I
            60 State St., Suite 3520
            Boston, MA 02109-1803
            Telephone:  (617) 973-4005
            Fax:  (617) 723-4786
            Attention:  Stephen Ballou

            HPSC Gloucester Funding 2003-1 LLC II
            60 State St., Suite 3520
            Boston, MA 02109-1803
            Telephone: (617) 973-4006
            Fax:  (617) 723-4786
            Attention: Stephen Ballou

                                      -10-
<Page>

            IF TO THE INDENTURE TRUSTEE:

            BNY Midwest Trust Company
            2 North LaSalle St., Suite 1020
            Chicago, IL  60602
            Telephone:  (312) 827-8569
            Fax:  (312) 827-8562
            Attention:  Structured Finance

            IF TO THE CUSTODIAN:

            Iron Mountain Information Management, Inc.
            745 Atlantic Avenue
            Boston, MA 02111
            Telephone:  (617) 535-4766
            Fax:  (617) 350-7881
            Attention:
                      ----------------------

            IF TO THE SERVICER:

            HPSC, Inc.
            60 State St., Suite 3520
            Boston, MA  02109-1803
            Telephone:  (617) 720-7251
            Fax: (617) 723-4786
            Attention:  Rene Lefebvre

     Section 5.21.     EXHIBITS. The exhibits to this Agreement are hereby
incorporated and made a part hereof and are an integral part of this Agreement.

     Section 5.22.     SUBMISSION TO JURISDICTION: WAIVER OF TRIAL BY JURY. WITH
RESPECT TO ANY CLAIM ARISING OUT OF THIS AGREEMENT (A) EACH PARTY IRREVOCABLY
SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COMMONWEALTH OF MASSACHUSETTS AND
THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS AND (B) EACH
PARTY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE
LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
HERETO BROUGHT IN ANY SUCH COURT, IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN ANY
INCONVENIENT FORUM AND FURTHER IRREVOCABLY WAIVES THE RIGHT TO OBJECT, WITH
RESPECT TO SUCH CLAIM, SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT,
THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER SUCH PARTY. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THE INDENTURE TRUSTEE, THE SERVICER, THE ISSUERS
AND THE CUSTODIAN EACH IRREVOCABLY WAIVE ALL RIGHT OF TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM

                                      -11-
<Page>

ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTER ARISING
HEREUNDER.

     Section 5.23.     REPRESENTATION BY COUNSEL. The Custodian and the Issuers
hereby acknowledge to the Indenture Trustee that the Custodian and the Issuers
have been (or have been finished sufficient opportunity to have been)
represented by counsel during the course of the negotiation of this Agreement
and the other Transaction Documents.

     Section 5.24.     CONSTRUCTION. For purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise required:

            (a)   the terms defined in this Agreement have the meanings assigned
to them in this Agreement and include the plural as well as the singular, and
the use of any gender herein shall be deemed to include the other gender;

            (b)   accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles;

            (c)   references herein to "Articles", "Sections", "Subsections",
"Paragraphs", and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subsections of
this Agreement;

            (d)   a reference to a Subsection without further reference to a
Section is a reference to such Subsection as contained in the same Section in
which the reference appears, and this rule shall also apply to Paragraphs and
other subdivisions;

            (e)   the words "herein", "hereof", "hereunder" and other words of
similar import refer to this Agreements as a whole and not to any particular
provision; and

            (f)   the term "include" or "including" shall mean without
limitation by reason of enumeration.

     Section 5.25.     RIGHTS OF THE INDENTURE TRUSTEE. The Indenture Trustee
shall be afforded the same rights, protections, immunities and indemnities set
forth in the Indenture as if specifically set forth herein.

                                      -12-
<Page>

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

                                    HPSC Gloucester Funding 2003-1 LLC I

                                    By:    /s/ Rene Lefebvre
                                        -----------------------------------
                                        Name:   Rene Lefebvre
                                               ----------------------------
                                        Title:  Manager
                                               ----------------------------

                                    HPSC Gloucester Funding 2003-1 LLC II

                                    By:    /s/ Rene Lefebvre
                                        -----------------------------------
                                        Name:   Rene Lefebvre
                                               ----------------------------
                                        Title:  Manager
                                               ----------------------------

                                    Iron Mountain Information Management, Inc.

                                    By:    /s/ Garry B. Watzke
                                        -----------------------------------
                                        Name:   Garry B. Watzke
                                               ----------------------------
                                        Title:  Vice President
                                               ----------------------------

                                    BNY Midwest Trust Company, not in its
                                    individual capacity, but solely as Indenture
                                    Trustee

                                    By:    /s/ M. Onischak
                                        -----------------------------------
                                        Name:   Marian Onischak
                                               ----------------------------
                                        Title:  Assistant Vice President
                                               ----------------------------

                                    As to Section 5.1 Acknowledged and Agreed to
                                    as of the date first written above:

                                    HPSC, Inc., as Servicer

                                    By:    /s/ Rene Lefebvre
                                        -----------------------------------
                                        Name:   Rene Lefebvre
                                               ----------------------------
                                        Title:  Manager
                                               ----------------------------

                               [Custody Agreement]

<Page>

                                    EXHIBIT 1

                                                            __________ __, 200__

BNY Midwest Trust Company
2 North LaSalle St., Suite 1020
Chicago, IL  60602
Attention: Structured Finance

          RE: HPSC GLOUCESTER FUNDING 2003-1 LLC I AND HPSC GLOUCESTER FUNDING
2003-1 LLC II - CONTRACTS RECEIVED

Gentlemen:

     We are sending this letter to you pursuant to Section 3.1 of that certain
Custody Agreement, dated as of March 31, 2003 among HPSC Gloucester Funding
2003-1 LLC I and HPSC Gloucester Funding 2003-1 LLC II, each as Issuer, BNY
Midwest Trust Company, as Indenture Trustee, Iron Mountain Information
Management, Inc., as Custodian and HPSC, Inc., as Servicer.

     Please see attached for the listing of all Contracts that have been
received during the period from _______________ (the date of our previous
Monthly Supplemental Report) to the twenty-fifth day of this month.

                                                   IRON MOUNTAIN INFORMATION
                                                   MANAGEMENT, INC.

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

<Page>

                           MONTHLY SUPPLEMENTAL REPORT

                                LIST OF CONTRACTS

                                     [DATE]

           (File number)       (Name)

<Table>
<Caption>
COUNT        FILE DESCRIPTION 1         FILE DESCRIPTION 2         FILE DESCRIPTION 3         FILE RECEIPT DATE
-----        ------------------         ------------------         -------------------        -----------------
<S>          <C>                        <C>                        <C>                        <C>
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
</Table>

<Page>

                                    EXHIBIT 2

                        REQUEST FOR RELEASE OF DOCUMENTS

To:   Iron Mountain Information Management, Inc.

      Re:   Custody Agreement, dated as of March 31, 2003, among HPSC Gloucester
            Funding 2003-1 LLC I and HPSC Gloucester Funding 2003-1 LLC II (the
            "ISSUERS"), BNY Midwest Trust Company (the "INDENTURE TRUSTEE"),
            Iron Mountain Information Management, Inc. (the "CUSTODIAN"), and
            HPSC, Inc. (the "SERVICER").

      In connection with the administration of the Contract Files held by you as
the Custodian for the Indenture Trustee pursuant to the above-captioned Custody
Agreement, we request the release of the Contract File described below, for the
reason indicated.

CONTRACT FILE NUMBER:

REASON FOR REQUESTING FILE: The undersigned hereby represents and warrants to
the Custodian and to the Indenture Trustee that the Servicer is hereby
requesting the release of the above-described Contract File for the following
reason (check one):

_____ 1.    Contract within Contract File Paid in Full or is a Purchased
Contract or is a Contract in respect to which a Substitute Contract has been
submitted in its place.

_____ 2.    Contract within Contract File in Default Proceedings

_____ 3.    Other (explain) __________________

      In connection with the release as requested hereby, the undersigned hereby
certifies to the Custodian and to the Indenture Trustee that no Event of Default
exists, or would exist after giving effect to the release requested hereby,
under that certain Indenture of even date herewith (as amended, supplemented or
otherwise modified) among the Issuers, the Servicer, the Originator and the
Indenture Trustee.

                                            HPSC, Inc., as Servicer

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

<Page>

Release of documents consented to:

Iron Mountain Information Management, Inc.

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

Consent of Indenture Trustee required with
respect to 3 [Indenture Trustee's consent not
required with respect to releases based upon
reasons 1 or 2 above]:

BNY Midwest Trust Company, as Indenture Trustee

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

<Page>

                                    EXHIBIT 3

                    AUTHORIZED OFFICERS OF INDENTURE TRUSTEE

                    Name                         Specimen Signature

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<Page>

                                    EXHIBIT 4

                         AUTHORIZED OFFICERS OF ISSUERS

                    Name                         Specimen Signature

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