Document:

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                                                                  EXECUTION COPY

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                              INDENTURE SUPPLEMENT

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                            APPLE RIDGE FUNDING LLC,

                                   as Issuer,

                         BANK ONE, NATIONAL ASSOCIATION,

                              as Indenture Trustee,

                                       and

                              THE BANK OF NEW YORK

                    as Paying Agent, Authentication Agent and

                          Transfer Agent and Registrar

                       SERIES 2000-1 INDENTURE SUPPLEMENT

                           Dated as of April 25, 2000

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                                                     TABLE OF CONTENTS

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                                                          ARTICLE I

                                             CREATION OF THE SERIES 2000-1 NOTES

Section 1.01.     Designation....................................................................................2

                                                          ARTICLE II

                                                         DEFINITIONS

Section 2.01.     Definitions....................................................................................3

                                                         ARTICLE III

                                                        SERVICING FEE

Section 3.01.     Servicing Fee.................................................................................14

                                                          ARTICLE IV

                                                   RIGHTS OF SERIES 2000-1
                                                NOTEHOLDERS AND ALLOCATION AND
                                               APPLICATION OF POOL COLLECTIONS

Section 4.01.     Pool Collections and Allocations..............................................................15

Section 4.02.     Determination of Monthly Interest.............................................................16

Section 4.03.     Determination of Principal Distribution.......................................................17

Section 4.04.     Determination of Liquidity Reserve Withdrawal Amount..........................................17

Section 4.05.     Application of Series 2000-1 Collections......................................................17

Section 4.06.     Claims upon the Policy; Policy Payments Account...............................................18

Section 4.07.     Series 2000-1 Expense Subaccount..............................................................20

Section 4.08.     Series 2000-1 Principal Subaccount............................................................21

Section 4.09.     Liquidity Reserve Account.....................................................................22

Section 4.10.     Determination of LIBOR........................................................................23

Section 4.11.     Investment Instructions.......................................................................23

                                                          ARTICLE V

                                       DELIVERY OF SERIES 2000-1 NOTES; DISTRIBUTIONS;
                                             REPORTS TO SERIES 2000-1 NOTEHOLDERS

Section 5.01.     Delivery and Payment for the Series 2000-1  Notes; Denominations..............................24

Section 5.02.     Registration; Registration of Transfer and Exchange; Transfer Restrictions....................24

Section 5.03.     Global Notes..................................................................................28

Section 5.04.     Regulation S Global Notes.....................................................................28

Section 5.05.     Special Transfer Provisions...................................................................30

Section 5.06.     CUSIP Numbers.................................................................................31
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                                                    TABLE OF CONTENTS

                                                       (CONTINUED)

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Section 5.07.     Distributions.................................................................................32

Section 5.08.     Reports and Statements to Series 2000-1  Noteholders..........................................32

                                                          ARTICLE VI

                                                     AMORTIZATION EVENTS

Section 6.01.     Series 2000-1 Amortization Events.............................................................33

                                                         ARTICLE VII

                                          OPTIONAL REDEMPTION OF SERIES 2000-1 NOTES

Section 7.01.     Optional Redemption of Series 2000-1 Notes....................................................36

                                                         ARTICLE VIII

                                                   MISCELLANEOUS PROVISIONS

Section 8.01.     Ratification of Agreement.....................................................................37

Section 8.02.     Counterparts..................................................................................37

Section 8.03.     Governing Law.................................................................................37

Section 8.04.     Series Enhancer Deemed Series 2000-1 Noteholder...............................................37

Section 8.05.     Subrogation...................................................................................37

Section 8.06.     Certain Rights of the Series Enhancer.........................................................38
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                                    EXHIBITS

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<S>                  <C>
EXHIBIT A-1           FORM OF RULE 144A GLOBAL NOTE

EXHIBIT A-2           FORM OF TEMPORARY REGULATION S GLOBAL NOTE

EXHIBIT A-3           FORM OF PERMANENT REGULATION S GLOBAL NOTE

EXHBIT B              FORM OF MONTHLY PAYMENT INSTRUCTIONS AND NOTIFICATION TO THE INDENTURE TRUSTEE

EXHIBIT C             FORM OF MONTHLY STATEMENT

EXHIBIT D             FORM OF MONTHLY SERVICER'S CERTIFICATE

EXHIBIT E-1           FORM OF EUROCLEAR AND CLEARSTREAM BANKING
                      CERTIFICATES

EXHIBIT E-2           FORM OF CERTIFICATE TO BE GIVEN BY HOLDER OF BENEFICIAL INTEREST IN A TEMPORARY REGULATION S
                      GLOBAL NOTE
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<PAGE>

         SERIES 2000-1 INDENTURE SUPPLEMENT, dated as of April 25, 2000 (as
amended, modified, restated or supplemented from time to time, the "INDENTURE
SUPPLEMENT"), by and between APPLE RIDGE FUNDING LLC, a limited liability
company organized under the laws of the State of Delaware, as Issuer (together
with its permitted successors and assigns, the "ISSUER"), BANK ONE, NATIONAL
ASSOCIATION, a national banking organization, as Indenture Trustee (together
with its permitted successors and assigns, the "INDENTURE TRUSTEE"), and THE
BANK OF NEW YORK, a New York state banking corporation, as paying agent,
authentication agent and transfer agent and registrar (together with its
permitted successors and assigns, "BNY").

         Pursuant to Section 2.10 of the Master Indenture, dated as of April 25,
2000 (as amended, modified, restated or supplemented from time to time, the
"INDENTURE" and together with the Indenture Supplement, the "AGREEMENT"), by and
between the Issuer, the Indenture Trustee and BNY, the Issuer may issue one or
more Series of Notes the Principal Terms of which shall be set forth in an
indenture supplement to the Indenture. In accordance with the terms of the
Indenture, the Issuer hereby creates a Series of Notes and specifies the
Principal Terms of such Series of Notes in this Indenture Supplement.

                                GRANTING CLAUSES

         The Issuer hereby Grants to the Indenture Trustee, for the benefit of
the Holders of the Series 2000-1 Notes, all of the Issuer's right, title and
interest, whether now owned or hereafter acquired, in, to and under: (i) the
Series 2000-1 Principal Subaccount, (ii) the Policy Payments Account, (iii) all
accounts, money, chattel paper, investment property, instruments, documents,
deposit accounts, certificates of deposit, letters of credit, advices of credit,
general intangibles and goods consisting of, arising from or relating to any of
the foregoing and (iv) all proceeds of the foregoing.

         The Issuer hereby Grants to the Indenture Trustee, for the benefit of
the Holders of the Series 2000-1 Notes and the Series Enhancer, all of the
Issuer's right, title and interest, whether now owned or hereafter acquired, in,
to and under: (i) the Series 2000-1 Expense Subaccount, (ii) the Liquidity
Reserve Account, (iii) all accounts, money, chattel paper, investment property,
instruments, documents, deposit accounts, certificates of deposit, letters of
credit, advices of credit, general intangibles and goods consisting of, arising
from or relating to any of the foregoing and (iv) all proceeds of the foregoing.

<PAGE>

                                    ARTICLE I

                       Creation of the Series 2000-1 Notes

         Section 1.01. Designation

         (a) There is hereby created a Series of Notes to be issued pursuant to
the Indenture and this Indenture Supplement to be known as the "APPLE RIDGE
FUNDING LLC SECURED TERM NOTES, SERIES 2000-1" or the "SERIES 2000-1 NOTES."

         (b) In the event that any term or provision contained herein shall
conflict with or be inconsistent with any term or provision contained in the
Indenture, the terms and provisions of this Indenture Supplement shall be
controlling.

                               [END OF ARTICLE I]

                                       2

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                                   ARTICLE II

                                   Definitions

         Section 2.01. Definitions.

         (a) Whenever used in this Indenture Supplement, the following words and
phrases shall have the following meanings, and the definitions of such terms are
applicable to the singular as well as the plural forms of such terms and the
masculine as well as the feminine and neuter genders of such terms.

         "ADDITIONAL INTEREST" shall have the meaning set forth in Section
4.02(b).

         "AMORTIZATION EVENT" shall have the meaning set forth in Section 6.01.

         "AMORTIZATION MONTHLY PRINCIPAL" shall have the meaning set forth in
Section 4.03.

         "AMORTIZATION PERIOD" shall mean the period commencing at the earlier
to occur of (a) the close of business on January 31, 2005 and (b) the close of
business on the Business Day immediately preceding the day on which an
Amortization Event has occurred, and ending on the date on which (x) the Series
Outstanding Amount shall have been paid in full, together with all accrued
interest thereon, and (y) all amounts owed to the Series Enhancer under the
Insurance Agreement shall have been paid in full.

         "APPLICABLE STRESS FACTOR" shall mean, as of any date of determination,
1.5; provided that (i) if the Default Ratio exceeded 5.0%, or the Three Month
Average Default Ratio exceeded 4.0%, for the Monthly Period preceding the first
day of the Interest Period in which such date occurs, then the Applicable Stress
Factor used in the calculation of the Loss Reserve Ratio shall be 2.5, or (ii)
if the Dilution Ratio exceeded 1.25%, or the Three Month Average Dilution Ratio
exceeded 0.75%, for the Monthly Period preceding the first day of the Interest
Period in which such date occurs, then the Applicable Stress Factor used in the
calculation of the Dilution Reserve Ratio shall be 2.5.

         "APPRAISED VALUE HOME" shall mean a Home purchased by an Originator if
the owner of the Home is unsuccessful at contracting to sell the Home prior to
the purchase of the Home by the applicable Originator and as to which the
purchase price is generally determined by the average of two or more independent
appraisals.

         "AVERAGE DAYS IN INVENTORY" shall mean, for any Monthly Period, the
average number of days the Homes have been owned by each Originator as of the
close of business on the last day of such Monthly Period.

         "AVERAGE DAYS OUTSTANDING" shall mean, as of the end of any Monthly
Period, the sum of

         (a) the product of (i) a fraction, the numerator of which is the
aggregate Unpaid Balance of Unsold Home Receivables (net of Advance Payments
relating thereto) as of the end

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of such Monthly Period and the denominator of which is the Aggregate Receivable
Balance as of the end of such Monthly Period, multiplied by (ii) the Average
Days in Inventory for such Monthly Period, plus

         (b) the product of (i) a fraction, the numerator of which is the
aggregate Unpaid Balance of Billed Receivables and Unbilled Receivables (net of
Advance Payments relating thereto) as of the end of such Monthly Period, and the
denominator of which is the Aggregate Receivable Balance as of the end of such
Monthly Period, multiplied by (ii) the sum of (A) the average number of days as
of the end of such Monthly Period it took to bill Unbilled Receivables once they
became billable plus (B) the average number of days Billed Receivables have been
outstanding as of the end of such Monthly Period.

         For the purposes of the foregoing calculation, Unbilled Receivables are
deemed to be billable (x) if the Receivable was previously an Unsold Home
Receivable, upon the subsequent sale of the Home by the applicable Originator
and (y) if such Receivable relates to services that are not related to Home
sales, upon disbursement.

         "CUSTODIAN" shall mean the entity maintaining possession of the Global
Notes for the Clearing Agency.

         "DEFAULT RATIO" shall mean, for any Monthly Period, the quotient,
expressed as a percentage, of (a) the sum of (i) the aggregate Unpaid Balance of
the Receivables that have become Defaulted Receivables in accordance with clause
(i) or (iii) of the definition of Defaulted Receivable during such Monthly
Period plus (ii) the Aggregate Employer Balance of each Employer whose
Receivables have become Defaulted Receivables in accordance with clause (ii) of
the definition of Defaulted Receivables during such Monthly Period, divided by
(b) the aggregate Unpaid Balance of the Billed Receivables generated during the
fifth Monthly Period preceding such Monthly Period.

         "DILUTION RATIO" shall mean, for any Monthly Period, the quotient,
expressed as a percentage, of (a) the aggregate amount of reductions to the
Unpaid Balances of the Billed Receivables due to offsets, chargebacks, credits,
adjustments, rebates and other Originator Dilution Adjustments, Seller Dilution
Adjustments and Servicer Dilution Adjustments occurring during such Monthly
Period divided by (b) the aggregate Unpaid Balance of the Billed Receivables
generated during the fifth Monthly Period preceding such Monthly Period.

         "DILUTION RESERVE RATIO" shall mean, as of any date of determination,
the product, expressed as a percentage, of

         (a) the greater of:

                  (i) the product of (A) the Applicable Stress Factor multiplied
    by (B) the average of the Dilution Ratios for the three Monthly Periods
    preceding the first day of the Interest Period in which such date occurs and

                  (ii) the highest Dilution Ratio for any Monthly Period over
    the 12 Monthly Periods preceding the first day of the Interest Period in
    which such date occurs, multiplied by

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         (b) a fraction, the numerator of which is the sum of:

                  (i) the aggregate Unpaid Balance of the Billed Receivables
    generated over the five Monthly Periods preceding the first day of the
    Interest Period in which such date occurs plus

                  (ii) the aggregate Unpaid Balance of the Unbilled Receivables
    as of the end of the Monthly Period preceding the first day of the Interest
    Period in which such date occurs, and the denominator of which is the
    aggregate Unpaid Balance of the Billed Receivables as of the end of such
    Monthly Period, multiplied by

         (c) a fraction, the numerator of which is equal to the sum of:

                  (i) the aggregate Unpaid Balance of the Billed Receivables as
    of the end of such Monthly Period plus

                  (ii) the aggregate Unpaid Balance of the Unbilled Receivables
    as of the end of such Monthly Period plus

                  (iii) the greater of (A) the product of 3.5 multiplied by the
    average of the Monthly Loss on Sale for such Monthly Period and the two
    immediately preceding Monthly Periods and (B) 10% of the aggregate Unpaid
    Balance of Unsold Home Receivables relating to Appraised Value Homes as of
    the end of such Monthly Period, and the denominator of which is equal to the
    aggregate Unpaid Balance of Eligible Receivables as of the end of such
    Monthly Period minus the Aggregate Adjustment Amount on such date.

         "DISTRIBUTION COMPLIANCE PERIOD" shall have the meaning set forth in
Rule 902 of Regulation S.

         "DISTRIBUTION DATE" shall mean June 15, 2000 and the fifteenth day of
each calendar month thereafter, or if such fifteenth day is not a Business Day,
the next succeeding Business Day.

         "DWAC" shall mean Deposit and Withdrawal At Custodian Service.

         "FINAL STATED MATURITY DATE" shall mean the earlier of (a) the
Distribution Date occurring in March 2007 and (b) the Distribution Date
occurring in the 25th Monthly Period following the Monthly Period in which the
Amortization Period commenced.

         "GUARANTEED DISTRIBUTION" shall mean (a) with respect to any
Distribution Date other than the Final Stated Maturity Date, the Monthly
Interest and (b) with respect to the Final Stated Maturity Date, the sum of (i)
the Series Outstanding Amount plus (ii) the Monthly Interest.

         "GUARANTEED INTEREST DISTRIBUTION AMOUNT" shall mean, with respect to
any Distribution Date, the excess of (a) the Monthly Interest payable on such
Distribution Date over (b) the sum of (i) the amount on deposit in the Series
2000-1 Expense Subaccount available for

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payment of such Monthly Interest plus (ii) the amount on deposit in the
Liquidity Reserve Account available for payment of such Monthly Interest.

         "GUARANTEED PRINCIPAL DISTRIBUTION AMOUNT" shall mean, with respect to
the Distribution Date which is also the Final Stated Maturity Date, the excess
of (a) Series Outstanding Amount over (b) the sum of (i) the amount on deposit
in the Series 2000-1 Principal Subaccount, plus (ii) the amount on deposit in
the Liquidity Reserve Account available to be transferred to the Series 2000-1
Principal Subaccount pursuant to Section 4.05(a).

         "INITIAL PURCHASERS" shall mean Lehman Brothers Inc., Banc of America
Securities LLC, Banc One Capital Markets, Inc., Chase Securities Inc., First
Union Securities, Inc., RBC Dominion Securities Corporation and Scotia Capital
(USA) Inc., collectively.

         "INITIAL SERIES OUTSTANDING AMOUNT" shall mean, with respect to the
Series 2000-1 Notes, $400,000,000.

         "INSURANCE AGREEMENT" shall mean the Insurance Agreement dated as of
the Series 2000-1 Closing Date by and between the Series Enhancer, the Indenture
Trustee, the Servicer, the Originators, the Transferor and the Issuer, which
shall constitute an "Enhancement Agreement" with respect to the Series 2000-1
Notes for all purposes under the Indenture.

         "INSURANCE PREMIUM RATE" shall have the meaning set forth in the
Premium Letter Agreement.

         "INTEREST PERIOD" shall mean, with respect to any Distribution Date,
the period beginning on and including the Distribution Date immediately
preceding such Distribution Date (or, in the case of the first Distribution
Date, beginning on and including the Series 2000-1 Closing Date) and ending on
and excluding such Distribution Date.

         "INTEREST SHORTFALL" shall have the meaning set forth in Section
4.02(b).

         "LIBOR" shall mean, for any Interest Period, as of any LIBOR
Determination Date, the London interbank offered rate for deposits in United
States dollars for a one-month period determined by the Paying Agent for each
Interest Period in accordance with the provisions of Section 4.10.

         "LIBOR DETERMINATION DATE" shall mean the second London Business Day
prior to the commencement of the second and each subsequent Interest Period.

         "LIQUIDITY RESERVE ACCOUNT" shall have the meaning set forth in Section
4.09(a).

         "LIQUIDITY RESERVE ACCOUNT AMOUNT" shall mean, on any Business Day, the
amount on deposit in the Liquidity Reserve Account (including the principal
amount of any investments made with funds previously deposited in the Liquidity
Reserve Account and after giving effect to any deposits thereto and withdrawals
and releases therefrom on such Business Day).

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         "LIQUIDITY RESERVE WITHDRAWAL AMOUNT" shall have the meaning set forth
in Section 4.04.

         "LONDON BUSINESS DAY" shall mean any Business Day on which dealings in
deposits in U.S. dollars are transacted in the London interbank market and
banking institutions in London are not authorized or obligated by law or
regulation to close.

         "LOSS RESERVE RATIO" shall mean, as of any date of determination, the
greatest of:

         (a) the percentage equivalent of the product of:

                  (i) the Applicable Stress Factor, multiplied by

                  (ii) the highest Three Month Average Default Ratio for any
    Monthly Period over the 12 Monthly Periods preceding the first day of the
    Interest Period in which such date occurs, multiplied by

                  (iii) a fraction, the numerator of which is the sum of (A) the
    aggregate Unpaid Balance of the Billed Receivables generated over the five
    Monthly Periods preceding the first day of the Interest Period in which such
    date occurs plus (B) the aggregate Unpaid Balance of the Unbilled
    Receivables as of the end of the Monthly Period preceding the first day of
    the Interest Period in which such date occurs, and the denominator of which
    is the aggregate Unpaid Balance of the Billed Receivables as of the end of
    such Monthly Period, multiplied by

                  (iv) a fraction, the numerator of which is equal to the sum of
    (A) the aggregate Unpaid Balance of Billed Receivables as of the end of the
    Monthly Period preceding the first day of the Interest Period in which such
    date occurs plus (B) the aggregate Unpaid Balance of Unbilled Receivables as
    of the end of such Monthly Period plus (C) the greater of (1) the product of
    3.5 multiplied by the average of the Monthly Loss on Sale for such Monthly
    Period and the two immediately preceding Monthly Periods and (2) 10% of the
    aggregate Unpaid Balance of Unsold Home Receivables relating to Appraised
    Value Homes as of the end of such Monthly Period, and the denominator of
    which is equal to the aggregate Unpaid Balance of Eligible Receivables as of
    the end of such Monthly Period minus the Aggregate Adjustment Amount on such
    date;

         (b) the product of (i) the Applicable Stress Factor multiplied by (ii)
    the highest Default Ratio for any Monthly Period over the three Monthly
    Periods preceding the first day of the Interest Period in which such date
    occurs; and

         (c) 2.5%.

         "MONTHLY INSURANCE PREMIUM" shall mean for any Distribution Date, the
premium payable in respect of the Policy in accordance with the Insurance
Agreement and the Premium Letter Agreement.

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         "MONTHLY LOSS ON SALE" shall equal, for any Monthly Period, for all
Homes sold during such Monthly Period, the aggregate of the amounts, if any, by
which the purchase price of each such Home paid by CMF or CMSC, as applicable,
exceeded the sale price for such Home received by the Servicer (the amount of
any such excess with respect to a Home being a "Loss"). The Monthly Loss on Sale
for any Monthly Period shall be based on the gross Losses for such Monthly
Period without regard to any gains on the sale of other Homes during such
Monthly Period.

         "MONTHLY INTEREST" shall have the meaning set forth in Section 4.02(a).

         "MONTHLY PERIOD" shall mean the period from and including the first day
of a calendar month to and including the last day of such calendar month (other
than the initial Monthly Period, which will commence on and include the Series
2000-1 Closing Date and end on and include May 31, 2000).

         "MONTHLY SERVICING FEE" shall have the meaning set forth in Section
3.01.

         "NET CREDIT LOSSES" shall mean, for any Monthly Period, an amount equal
to the excess, if any, of the estimated losses to be incurred in respect of all
Receivables written off by the Servicer in accordance with the Credit and
Collection Policy during such Monthly Period over an amount equal to all amounts
recovered during such Monthly Period in respect of Receivables written off by
the Servicer in accordance with the Credit and Collection Policy during prior
Monthly Periods, which amounts exceed the amounts that the Servicer estimated
would be recovered in respect of such Receivables.

         "NON-U.S. CERTIFICATE" shall have the meaning set forth in Section
5.04(b).

         "NOTE INTEREST RATE" shall mean, for each Interest Period (other than
the first Interest Period), a rate of 0.28% per annum in excess of LIBOR as
determined on the related LIBOR Determination Date. The Note Interest Rate for
the first Interest Period will equal 6.49% per annum.

         "OFFERING MEMORANDUM" shall mean the Offering Memorandum relating to
the Series 2000-1 Notes dated April 12, 2000.

         "PERMANENT REGULATION S GLOBAL NOTE" shall have the meaning set forth
in Section 5.04.

         "POLICY" shall mean the financial guaranty insurance policy number
32011(1), dated as of the Series 2000-1 Closing Date, issued by the Series
Enhancer to the Indenture Trustee for the benefit of the Series 2000-1
Noteholders.

         "POLICY PAYMENTS ACCOUNT" shall have the meaning set forth in Section
4.06(b).

         "PREFERENCE CLAIM" shall have the meaning set forth in Section 4.06(d).

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         "PREMIUM LETTER AGREEMENT" shall mean the Premium Letter Agreement
dated as of the Series 2000-1 Closing Date between the Issuer, the Indenture
Trustee and the Series Enhancer.

         "QIB" shall have the meaning set forth in Section 5.02(b).

         "RATING AGENCY" shall mean each of Standard & Poor's Ratings Services
and Moody's Investors Service, Inc.

         "REDEMPTION PRICE" shall mean, with respect to any Distribution Date,
after giving effect to any deposits and distributions otherwise to be made on
such Distribution Date, the sum of (i) the Series Outstanding Amount on such
Distribution Date plus (ii) Monthly Interest for such Distribution Date and any
Monthly Interest previously due but not distributed to the Series 2000-1
Noteholders plus (iii) any amounts due to the Series Enhancer pursuant to the
Insurance Agreement.

         "REFERENCE BANKS" shall mean four major banks in the London interbank
market selected by the Paying Agent.

         "REGULATION S" shall mean Regulation S under the Securities Act.

         "REGULATION S CERTIFICATE" shall have the meaning set forth in Section
5.02(e).

         "REGULATION S GLOBAL NOTE" shall mean each of the Temporary Regulation
S Global Note and the Permanent Regulation S Global Note.

         "REIMBURSEMENT AMOUNT" shall mean, as of any date of determination, the
sum of (i) the aggregate amount due as of such date to the Series Enhancer
pursuant to the Insurance Agreement in respect of unreimbursed draws under the
Policy, including interest thereon determined in accordance with the Insurance
Agreement, and (ii) an amount equal to the aggregate of any other amounts due as
of such date to the Series Enhancer pursuant to the Insurance Agreement (other
than the Monthly Insurance Premium).

         "RELEASE DATE" shall have the meaning set forth in Section 5.02(e).

         "REQUIRED AMOUNT" shall mean, as of any date of determination, the sum
of (a) (i) the Monthly Interest to be distributed on the Distribution Date
falling in the Monthly Period succeeding the Monthly Period in which such date
occurs plus (ii) any Interest Shortfall previously accrued and not reimbursed
plus (iii) any Additional Interest previously accrued and not reimbursed, (b)
the sum of (i) the Monthly Insurance Premium to be distributed on such
Distribution Date plus (ii) any Monthly Insurance Premium previously accrued and
not paid, plus (c) the sum of (i) the Monthly Servicing Fee to be distributed on
such Distribution Date plus (ii) any Monthly Servicing Fee previously accrued
and not paid; provided that for the purpose of determining the Required Amount
for the allocation set forth in Section 4.01(c), (a) the Monthly Interest for
any day prior to the first day of the Interest Period commencing in such Monthly
Period shall equal the Monthly Interest as determined for the Interest Period
ending in such Monthly Period and (b) the Monthly Interest for any day on or
after the first day of the Interest Period commencing in such Monthly Period
shall equal such Monthly Interest as determined for

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such Interest Period; provided further that for the purpose of determining the
Required Amount for the allocation set forth in Section 4.01(c), (a) the Monthly
Insurance Premium for any day prior to the first day of the Interest Period
commencing in such Monthly Period shall equal the Monthly Insurance Premium as
determined for the Interest Period ending in such Monthly Period and (b) the
Monthly Insurance Premium for any day on or after the first day of the Interest
Period in such Monthly Period shall equal the Monthly Insurance Premium as
determined for such Interest Period.

         "REQUIRED LIQUIDITY RESERVE ACCOUNT AMOUNT" shall mean, as of any date
of determination during an Interest Period, an amount equal to 125% of the
Monthly Interest payable on the first day of such Interest Period; provided,
however, that during the initial Interest Period, the Required Liquidity Reserve
Account Amount will equal 125% of the interest that will accrue on the Series
2000-1 Notes during the first Interest Period.

         "REQUIRED OVERCOLLATERALIZATION AMOUNT" shall mean, as of any date of
determination, the amount by which the Series 2000-1 Required Enhancement Amount
exceeds the sum of (a) the amount on deposit in the Liquidity Reserve Account on
such date plus (b) the amount on deposit in the Series 2000-1 Principal
Subaccount.

         "REVOLVING PERIOD" shall mean the period beginning on the Series 2000-1
Closing Date and ending upon the commencement of the Amortization Period.

         "RULE 144A" shall mean Rule 144A under the Securities Act.

         "RULE 144A GLOBAL NOTE" shall have the meaning set forth in Section
5.03.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

         "SERIES ENHANCER" shall mean MBIA Insurance Corporation, a New York
domiciled insurance company, or any successor thereto.

         "SERIES ENHANCER DEFAULT" shall mean (i) the failure of the Series
Enhancer to make a payment required under the Policy in accordance with the
terms thereof (and such failure continues unremedied for two Business Days),
(ii) the occurrence of an Insolvency Event with respect to the Series Enhancer
or (iii) the appointment of a receiver, conservator, liquidation or similar
official for the Series Enhancer or its property.

         "SERIES ENHANCER DRAW AMOUNT" shall mean, for any Distribution Date, an
amount equal to the sum of (a) the Guaranteed Interest Distribution Amount plus
(b) if such Distribution Date is the Final Stated Maturity Date, the Guaranteed
Principal Distribution Amount.

         "SERIES OUTSTANDING AMOUNT" shall mean, as of any date of
determination, an amount equal to the Initial Series Outstanding Amount minus
the amount of Amortization Monthly Principal previously paid to Series 2000-1
Noteholders (other than any such payment made from the proceeds of the Policy).

         "SERIES PERCENTAGE" shall mean, with respect to any date of
determination, the

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percentage equivalent (which percentage shall never exceed 100%) of a fraction
calculated as follows:

         (a) during the Revolving Period, the numerator of the fraction will be
the Series 2000-1 Required Asset Amount as of the close of business on the
immediately preceding day, and the denominator of the fraction will be the
greater of (i) the Adjusted Aggregate Receivable Balance as of the close of
business on the immediately preceding day and (ii) the sum of the numerators
used to determine the Series Percentage for each Series of Notes (including the
Series 2000-1 Notes) Outstanding at the close of business on the immediately
preceding day; and

         (b) during the Amortization Period, the numerator of the fraction will
be the Series 2000-1 Required Asset Amount as of the close of business on the
last day of the Revolving Period, and the denominator of the fraction will be
the sum of the numerators used to determine the Series Percentage for each
Series of Notes (including the Series 2000-1 Notes) Outstanding at the close of
business on the immediately preceding day.

         "SERIES 2000-1" shall mean the Series of Notes the terms of
which are specified in this Indenture Supplement.

         "SERIES 2000-1 ALLOCATED ADJUSTED AGGREGATE RECEIVABLE BALANCE" shall
mean, as of any date of determination, the lower of (a) the Series 2000-1
Required Asset Amount as of such date and (b) the product of (i) the Adjusted
Aggregate Receivable Balance as of such date multiplied by (ii) the percentage
equivalent of a fraction, the numerator of which is the Series 2000-1 Required
Asset Amount as of such date and the denominator of which is the sum of (x) the
Series 2000-1 Required Asset Amount as of such date plus (y) the aggregate
Required Asset Amount with respect to each other Series of Notes as of such
date.

         "SERIES 2000-1 ASSET AMOUNT DEFICIENCY" shall occur if and to the
extent the Series 2000-1 Allocated Adjusted Aggregate Receivable Balance is less
than the Series 2000-1 Required Asset Amount as of such date.

         "SERIES 2000-1 CLOSING DATE" shall mean April 25, 2000.

         "SERIES 2000-1 COLLECTIONS" shall have the meaning set forth in Section
4.01(b).

         "SERIES 2000-1 EXPENSE SUBACCOUNT" shall have the meaning set forth in
Section 4.07(a).

         "SERIES 2000-1 NOTEHOLDER" shall mean the Person in whose name a Series
2000-1 Note is registered in the Note Register.

         "SERIES 2000-1 NOTES" shall mean any one of the Notes executed by the
Issuer and authenticated by the Authentication Agent, substantially in the form
of Exhibit A.

         "SERIES 2000-1 PRINCIPAL SUBACCOUNT" shall have the meaning set forth
in Section 4.08(a).

                                       11
<PAGE>

         "SERIES 2000-1 REQUIRED ASSET AMOUNT" shall mean, as of any date of
determination, an amount equal to the sum of (a) the Series Outstanding Amount
plus (b) the Required Overcollateralization Amount.

         "SERIES 2000-1 REQUIRED ENHANCEMENT AMOUNT" shall mean, as of any date
of determination, an amount equal to the sum of (a) the greater of (i) 7% of the
Series Outstanding Amount and (ii) an amount equal to the product of (A) the
Series Outstanding Amount multiplied by (B) the quotient of (1) the sum of (w)
the Loss Reserve Ratio plus (x) the Dilution Reserve Ratio plus (y) the Yield
Reserve Ratio plus (z) the Servicing Reserve Ratio divided by (2) one minus the
sum of (w) the Loss Reserve Ratio plus (x) the Dilution Reserve Ratio plus (y)
the Yield Reserve Ratio plus (z) the Servicing Reserve Ratio plus (b) the
excess, if any, of accrued and unpaid interest on the Series 2000-1 Notes over
the amount on deposit in the Liquidity Reserve Account; provided, however, that
after the declaration or occurrence of an Amortization Event, the Series 2000-1
Required Enhancement Amount shall equal the Series 2000-1 Required Enhancement
Amount in effect on the date of the declaration or occurrence of such
Amortization Event.

         "SERVICING FEE" shall have the meaning set forth in the Transfer and
Servicing Agreement.

         "SERVICING RESERVE RATIO" shall mean, as of any date of determination,
the quotient, expressed as a percentage, of (a) the product of (i) 1.5
multiplied by (ii) 0.75% multiplied by (iii) Average Days Outstanding as of the
end of the Monthly Period preceding the first day of the Interest Period in
which such date occurs, divided by (b) 360.

         "TELERATE PAGE 3750" shall mean the display page currently so
designated on the Bridge Telerate Market Report (or such other page as may
replace that page in that service for the purpose of displaying comparable rates
or prices).

         "TEMPORARY REGULATION S GLOBAL NOTE" shall have the meaning set forth
in Section 5.03.

         "THREE MONTH AVERAGE DEFAULT RATIO" shall mean, for any Monthly Period,
the average of the Default Ratios for that Monthly Period and each of the two
immediately preceding Monthly Periods.

         "THREE MONTH AVERAGE DILUTION RATIO" shall mean, for any Monthly
Period, the average of the Dilution Ratios for that Monthly Period and each of
the two immediately preceding Monthly Periods.

         "YIELD RESERVE RATIO" shall mean, as of any date of determination
during an Interest Period, the quotient expressed as a percentage, of (a) the
product of (i) the sum of (A) the Insurance Premium Rate plus (B) the product of
(1) 1.5 multiplied by (2) the Note Interest Rate for the Interest Period in
which such date occurs multiplied by (ii) 1.5 multiplied by the Average Days
Outstanding as of the end of the Monthly Period preceding the first day of such
Interest Period divided by (b) 360.

                                       12
<PAGE>

         (b) Each capitalized term defined herein shall relate to the Series
2000-1 Notes and no other Series of Notes issued by the Issuer, unless the
context otherwise requires. All capitalized terms used herein and not otherwise
defined herein have the meanings ascribed to them in the Indenture, the Transfer
and Servicing Agreement, the Receivables Purchase Agreement or the Purchase
Agreement.

         (c) The words "HEREOF," "HEREIN" and "HEREUNDER" and words of similar
import when used in this Indenture Supplement shall refer to this Indenture
Supplement as a whole and not to any particular provision of this Indenture
Supplement; references to any Article, subsection, Section or Exhibit are
references to Articles, subsections, Sections and Exhibits in or to this
Indenture Supplement unless otherwise specified; and the term "INCLUDING" means
"INCLUDING WITHOUT LIMITATION."

                               [END OF ARTICLE II]

                                       13
<PAGE>

                                   ARTICLE III

                                  Servicing Fee

         Section 3.01. Servicing Fee.

         The Transfer and Servicing Agreement sets forth the full compensation
that the Servicer is entitled to receive for its servicing activities. The share
of the Servicing Fee allocable to the Series 2000-1 Noteholders with respect to
any Distribution Date (the "MONTHLY SERVICING FEE") shall be equal to the
product of (a) 0.75% multiplied by (b) the weighted average over the related
Monthly Period of the daily sums of the Aggregate Employer Balances for each
Employer under the Pool Relocation Agreements multiplied by (c) the average
Series Percentage during such Monthly Period. The remainder of the Servicing Fee
shall be paid by the noteholders of other Series (as provided in the Indenture
Supplement related to such other Series) or the Issuer and in no event shall the
Indenture Trustee or the Series 2000-1 Noteholders be liable for the share of
the Servicing Fee to be paid by the Noteholders of such other Series or the
Issuer. To the extent that the Monthly Servicing Fee is not paid in full
pursuant to the preceding provisions of this Section 3.01, and Section 4.05, it
shall be paid by the Issuer. The Monthly Servicing Fee shall be payable from
Series 2000-1 Collections pursuant to, and subject to the priority of payments
set forth in, Section 4.05.

                              [END OF ARTICLE III]

                                       14
<PAGE>

                                   ARTICLE IV

                       Rights of Series 2000-1 Noteholders
              and Allocation and Application of Pool Collections

         Section 4.01. Pool Collections and Allocations.

         (a) Allocation of Pool Collections. Funds on deposit in the Collection
Account in accordance with Section 8.04 of the Indenture shall be allocated and
distributed to Series 2000-1 as set forth in the Indenture and this Article IV.

         (b) Allocation of Pool Collections to Series 2000-1. Prior to the close
of business on each Deposit Date, the Servicer shall allocate to Series 2000-1
an amount (such amount, the "SERIES 2000-1 COLLECTIONS") equal to the product of
(i) the amount of Collections deposited in the Collection Account on such
Deposit Date (less any amounts permitted to be withdrawn pursuant to Sections
3.02(c)(vi), 3.12 and 3.14(b) of the Transfer and Servicing Agreement)
multiplied by (ii) the Series Percentage for such Deposit Date.

         (c) Allocation of Series 2000-1 Collections. Prior to the close of
business on each Deposit Date, the Servicer shall direct the Indenture Trustee
to allocate Series 2000-1 Collections in the amounts and according to the
priority set forth below pursuant to Section 8.04 of the Indenture:

                  (i) (A) If the amount of funds on deposit in the Series 2000-1
    Expense Subaccount on such Deposit Date is less than the Required Amount for
    such Deposit Date (excluding such amounts as were deposited in the Series
    2000-1 Expense Subaccount during the preceding Monthly Period and are being
    held for distribution on the next Distribution Date), from the Collection
    Account to the Series 2000-1 Expense Subaccount an amount equal to the
    lesser of (A) the amount of such deficiency or (B) the Series 2000-1
    Collections on such Deposit Date;

                      (B) If the amount of funds on deposit in the Series 2000-1
    Expense Subaccount on such Deposit Date (excluding such amounts as were
    deposited in the Series 2000-1 Expense Subaccount during the preceding
    Monthly Period and are being held for distribution on the next succeeding
    Distribution Date) exceeds the Required Amount for such Deposit Date, from
    the Series 2000-1 Expense Subaccount an amount equal to such excess TO BE
    TREATED AS Series 2000-1 Collections for distribution in accordance with
    this Section 4.01(c);

                  (ii) If the amount of funds on deposit in the Liquidity
    Reserve Account on such Deposit Date is less than the Required Liquidity
    Reserve Account Amount for such Deposit Date, from the Collection Account to
    the Liquidity Reserve Account an amount equal to the lesser of (A) the
    amount of such deficiency or (B) the Series 2000-1 Collections on such
    Deposit Date (after giving effect to the transfer set forth in clause (i)(A)
    above);

                  (iii) During the Revolving Period, and during the Amortization
    Period after the Series 2000-1 Notes have been paid in full, to the Series
    Enhancer, an amount

                                       15
<PAGE>

    equal to any amounts owed to it pursuant to the Insurance Agreement (other
    than as reimbursement for payments made by the Series Enhancer under the
    Policy in respect of interest on the Series 2000-1 Notes);

                  (iv) (A) During the Revolving Period, all remaining Series
    2000-1 Collections (A) if any other Series of Notes is in its Amortization
    Period and the Indenture Supplement related to such amortizing Series of
    Notes requires the Issuer to transfer such remaining Series 2000-1
    Collections to pay the principal of such other Series of Notes, to the
    applicable Series Account with respect to such amortizing Series of Notes;
    provided that if more than one other Series of Notes is amortizing and the
    related Indenture Supplement of each such amortizing Series of Notes
    requires the Issuer to transfer such remaining Series 2000-1 Collections to
    pay the principal of such other Series of Notes, pro rata to the applicable
    Series Account of each such other amortizing Series of Notes based on their
    respective Series Percentages;

                  (B) If no transfer of the remaining Series 2000-1
    Collections is required pursuant to clause (A), all remaining Series 2000-1
    Collections to the Issuer free and clear of the lien of the Indenture and
    without compliance with Section 12.01(b) of the Indenture;

    provided, however, with respect to clause (A) and (B), if a Series 2000-1
    Asset Amount Deficiency has occurred and is continuing, or if the
    application of funds to the payment of the principal of another Series of
    Notes or the release of funds to the Issuer would result in a Series 2000-1
    Asset Amount Deficiency or would otherwise result in the occurrence of an
    event that, with the passage of time or the giving of notice or both, would
    become an Amortization Event, all remaining Series 2000-1 Collections shall
    be transferred to the Series 2000-1 Principal Subaccount.

                  (v) During the Amortization Period, to the Series 2000-1
    Principal Subaccount, the Series 2000-1 Collections on such Deposit Date
    (after giving effect to the transfers set forth in clauses (i) and (ii)
    above); provided, however, that the aggregate amount deposited into the
    Series 2000-1 Principal Subaccount pursuant to this clause shall not exceed
    the Series Outstanding Amount on the immediately preceding Distribution
    Date.

         (d) Prior to the close of business on each Deposit Date during the
Amortization Period, the Issuer shall deposit Collections allocated to other
Series in the Series 2000-1 Principal Subaccount to the extent those Collections
would otherwise have been released to the Issuer under the terms of the
Indenture Supplement related to such Series. If Series 2000-1 and any other
Series are simultaneously in their respective Amortization Periods, such
Collections shall be allocated ratably between each such amortizing Series of
Notes (including Series 2000-1) based on their respective Series Percentages.

         Section 4.02. Determination of Monthly Interest.

         (a) The amount of interest ("MONTHLY INTEREST") distributable from the
Series 2000-1 Expense Subaccount with respect to the Series 2000-1 Notes on any
Distribution Date

                                       16
<PAGE>

shall be an amount equal to the product of (i) a fraction, the numerator of
which is the actual number of days in the related Interest Period and the
denominator of which is 360, multiplied by (ii) the Note Interest Rate in effect
with respect to the related Interest Period and multiplied by (iii) the Series
Outstanding Amount as of the close of business on the last day of the related
Interest Period.

         (b) On the Determination Date preceding each Distribution Date, the
Servicer shall determine the excess (the "INTEREST SHORTFALL"), if any, of (x)
the Monthly Interest for such Distribution Date over (y) the aggregate amount of
funds allocated and available to pay such Monthly Interest on such Distribution
Date (excluding the proceeds of a draw under the Policy). If the Interest
Shortfall with respect to any Distribution Date is greater than zero, then on
each subsequent Distribution Date until such Interest Shortfall is fully paid,
an additional amount ("ADDITIONAL INTEREST") equal to the product of (i) (A) a
fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, multiplied by (B) the sum
of (x) the Note Interest Rate and (y) 2.0% per annum and (ii) such Interest
Shortfall (or the portion thereof that has not been paid to the Series 2000-1
Noteholders from funds other than the proceeds of a draw under the Policy) shall
be payable as provided herein with respect to the Series 2000-1 Notes.
Notwithstanding anything herein to the contrary, Additional Interest shall be
payable or distributed only to the extent permitted by applicable law.

         Section 4.03. Determination of Principal Distribution. The amount
of principal distributable from the Series 2000-1 Principal Subaccount on each
Distribution Date (the "AMORTIZATION MONTHLY PRINCIPAL"), beginning with the
Distribution Date in the month following the month in which the Amortization
Period begins, shall equal the lesser of (i) the amount on deposit in the Series
2000-1 Principal Subaccount that was deposited therein during the preceding
Monthly Period (including amounts deposited in the Series 2000-1 Principal
Subaccount pursuant to Section 4.01(d)) for distribution on such Distribution
Date and (ii) the Series Outstanding Amount.

         Section 4.04. Determination of Liquidity Reserve Withdrawal Amount.
On or before each Distribution Date, the Issuer shall determine or cause the
Servicer to determine the amount (the "LIQUIDITY RESERVE WITHDRAWAL AMOUNT"), if
any, by which the amount distributable pursuant to Section 4.05 on such
Distribution Date exceeds the amount deposited in the Series 2000-1 Expense
Subaccount during the related Monthly Period.

         Section 4.05. Application of Series 2000-1 Collections. On each
Distribution Date or Deposit Date, as applicable, the Servicer shall instruct
the Indenture Trustee in writing to apply amounts on deposit in the Collection
Account (and any subaccount thereof) and the Liquidity Reserve Account as
follows:

         (a) On each Distribution Date for which the Liquidity Reserve
Withdrawal Amount is greater than zero, to withdraw the lesser of (i) the
Liquidity Reserve Withdrawal Amount and (ii) amounts on deposit in the Liquidity
Reserve Account from the Liquidity Reserve Account and transfer such amount to
the Series 2000-1 Expense Subaccount for distribution in accordance with clause
(b) below. If funds remain on deposit in the Liquidity Reserve Account on the
Final Stated Maturity Date (after giving effect to withdrawal of the Liquidity
Reserve Withdrawal Amount, if any, on such date) and the Series Outstanding
Amount

                                       17
<PAGE>

exceeds the amount on deposit on the Series 2000-1 Principal Subaccount, to
withdraw an amount equal to the lesser of (x) such excess and (y) the amount on
deposit in the Liquidity Reserve Account from the Liquidity Reserve Account and
transfer such amount to the Series 2000-1 Principal Subaccount for distribution
in accordance with clause (c) below.

         (b) On each Distribution Date, to transfer amounts on deposit in the
Series 2000-1 Expense Subaccount of the Collection Account in the following
order of priority:

                  (i) An amount equal to the sum of (A) Monthly Interest for
    such Distribution Date plus (B) any Interest Shortfall previously accrued
    and not reimbursed plus (c) any Additional Interest previously accrued and
    not reimbursed shall be distributed to the Distribution Account for payment
    to Series 2000-1 Noteholders on such Distribution Date pursuant to Section
    5.07; provided that no Interest Shortfall or Additional Interest shall be
    paid to the Series 2000-1 Noteholders to the extent that the Series 2000-1
    Noteholders received timely payment of interest on the Series 2000-1 Notes
    because of a payment by the Series Enhancer under the Policy;

                  (ii) If the Series Enhancer has made a payment under the
    Policy to fund the payment of Monthly Interest on any Distribution Date, an
    amount equal to the sum of (A) Interest Shortfall previously accrued and not
    reimbursed plus (B) Additional Interest previously accrued and not
    reimbursed which is related to such payment shall be distributed to the
    Series Enhancer;

                  (iii) An amount equal to the sum of (A) the Monthly Insurance
    Premium for such Distribution Date plus (B) any Monthly Insurance Premium
    previously accrued and not reimbursed shall be distributed to the Series
    Enhancer; and

                  (iv) An amount equal to the sum of (A) the Monthly Servicing
    Fee for such Distribution Date plus (B) any Monthly Servicing Fee previously
    accrued and not paid pursuant to this Section 4.05(b)(iv) shall be
    distributed to the Servicer.

         (c) On each Distribution Date during the Amortization Period, to
transfer an amount equal to the Amortization Monthly Principal for such
Distribution Date from the Series 2000-1 Principal Subaccount to the
Distribution Account for payment to the Series 2000-1 Noteholders on such
Distribution Date pursuant to Section 5.07.

         Section 4.06. Claims upon the Policy; Policy Payments Account.

         (a) If, by the close of business on the fourth Business Day prior to a
Distribution Date, the Servicer notifies the Indenture Trustee that on such
Distribution Date the funds that are or will be on deposit in the Series 2000-1
Expense Subaccount, Liquidity Reserve Account and the Series 2000-1 Principal
Subaccount on such Distribution Date that are available to pay the Guaranteed
Distribution on such day will be insufficient to pay such Guaranteed
Distribution on such Distribution Date, then the Indenture Trustee shall give
notice to the Series Enhancer by telephone or telecopy of the amount of such
insufficiency. Such notice shall be confirmed in writing in the form set forth
as Exhibit A to the Policy, to the Series Enhancer at or before 11:00 a.m., New
York City time, on the third Business Day prior to such Distribution Date.
Following receipt by the Series Enhancer of such notice in such form, the Series
Enhancer

                                       18
<PAGE>

will pay the Series Enhancer Draw Amount to the Indenture Trustee on the later
to occur of (i) 11:00 a.m., New York City time, on the third Business Day next
succeeding presentation to the Series Enhancer and (ii) 11:00 a.m., New York
City time, on the Distribution Date to which such deficiency relates, as
provided in the Policy.

         (b) The Indenture Trustee shall establish a separate special purpose
trust account, which account shall be an Eligible Account, for the benefit of
the Series 2000-1 Noteholders (the "POLICY PAYMENTS ACCOUNT") over which the
Indenture Trustee shall have exclusive control and sole right of withdrawal. The
Indenture Trustee shall deposit the Series Enhancer Draw Amount in the Policy
Payments Account and distribute such amount only for purposes of payment to the
Series 2000-1 Noteholders of the Guaranteed Distribution for which a claim was
made, and such amount may not be applied to satisfy any costs, expenses or
liabilities of the Servicer, the Indenture Trustee or the Issuer. The Series
Enhancer Draw Amount shall be transferred to the Distribution Account in
accordance with the next succeeding paragraph and disbursed by the Paying Agent
to the Series 2000-1 Noteholders in accordance with Section 5.07. It shall not
be necessary for such payments to be made by checks or wire transfers separate
from the checks or wire transfers used to pay the Guaranteed Distribution with
other funds available to make such payment. However, the amount of any payment
of Monthly Interest or of the Series Outstanding Amount to be paid from funds
transferred from the Policy Payments Account shall be noted as provided in
paragraph (c) below and in the statement to be furnished to the Series 2000-1
Noteholders pursuant to Section 5.08(a). Funds held in the Policy Payments
Account shall not be invested.

         On any Distribution Date with respect to which a claim has been made
under the Policy, the Series Enhancer Draw Amount shall be withdrawn from the
Policy Payments Account and deposited in the Distribution Account and applied by
the Paying Agent, together with the other funds to be withdrawn from the
Collection Account pursuant to Section 4.05, directly to the payment in full of
the Guaranteed Distribution. Any funds remaining in the Policy Payments Account
on the first Business Day following a Distribution Date shall be remitted to the
Series Enhancer by the end of such Business Day pursuant to the instructions of
the Series Enhancer.

         (c) The Indenture Trustee shall keep a complete and accurate record of
the amount of Monthly Interest and of the Series Outstanding Amount paid from
moneys received under the Policy. The Series Enhancer shall have the right to
inspect such records at reasonable times during normal business hours upon one
Business Day's prior notice to the Indenture Trustee.

         (d) The Indenture Trustee shall promptly notify the Series Enhancer of
any proceeding or the institution of any action, of which a Responsible Officer
of the Indenture Trustee has actual knowledge, seeking the avoidance as a
preferential transfer under applicable bankruptcy, insolvency, receivership or
similar law with respect to a proceeding against or by either Originator, the
Transferor, the Servicer, the Issuer or PHH (a "PREFERENCE CLAIM") of any
distribution made with respect to the Series 2000-1 Notes. Each Series 2000-1
Noteholder by its purchase of Series 2000-1 Notes, the Issuer and the Indenture
Trustee hereby agree that the Series Enhancer (so long as no Series Enhancer
Default exists) may at any time during the continuation of any proceeding
relating to a Preference Claim direct all matters relating to such

                                       19
<PAGE>

Preference Claim, including without limitation (i) the direction of any appeal
of any order relating to such Preference Claim and (ii) the posting of any
surety, supersedeas or performance bond pending any such appeal. In addition and
without limiting the foregoing, the Series Enhancer shall be subrogated to the
rights of the Issuer, the Indenture Trustee and each Series 2000-1 Noteholder in
the conduct of any such Preference Claim, including without limitation all
rights of any party to an adversary proceeding action with respect to any court
order issued in connection with any such Preference Claim.

         (e) Anything in the Indenture, this Indenture Supplement or any other
Transaction Document to the contrary notwithstanding, any payment with respect
to amounts due in respect of the Series 2000-1 Notes that is made with monies
received pursuant to the terms of the Policy shall not be considered payment on
the Series 2000-1 Notes by the Issuer, shall not discharge any obligations of
the Issuer to make such payment and shall not result in payment of (or the
provision for the payment of) any amounts due in respect of Series 2000-1 Notes
for purposes of Section 4.01 of the Indenture. To the extent any Series 2000-1
Notes have been paid with the proceeds of the Policy, such Series 2000-1 Notes
shall continue to remain Outstanding for purposes of the Indenture and this
Indenture Supplement until the Series Enhancer has been paid as subrogee
hereunder, and the Series Enhancer shall be deemed to be the Holder thereof to
the extent of any payments thereon made by the Series Enhancer.

         (f) The Indenture Trustee shall hold the Policy in trust solely for the
use and benefit of the Holders of the Series 2000-1 Notes.

         (g) The Indenture Trustee agrees to furnish to the Series Enhancer upon
its reasonable request the Indenture Trustee's records evidencing the payment of
amounts due on the Series 2000-1 Notes that have been made by the Indenture
Trustee and subsequently recovered from Holders of Series 2000-1 Notes, and the
dates on which such payments were made.

         (h) The Indenture Trustee shall be entitled to enforce on behalf of the
Holders of the Series 2000-1 Notes the obligations of the Series Enhancer under
the Policy. Notwithstanding any other provision of the Indenture, this Indenture
Supplement or any other Transaction Document to the contrary, the Holders of the
Series 2000-1 Notes are not entitled to make any claims under the Policy or
institute proceedings directly against the Series Enhancer.

         (i) Upon the expiration of the Policy in accordance with the terms
thereof, the Indenture Trustee shall surrender the Policy to the Series Enhancer
for cancellation.

         Section 4.07. Series 2000-1 Expense Subaccount.

         (a) The Issuer, for the benefit of the Series 2000-1 Noteholders and
the Series Enhancer, shall establish and maintain with the Indenture Trustee or
its nominee in the name of the Indenture Trustee, the Series 2000-1 Expense
Subaccount, which shall be a subaccount of the Collection Account (the "SERIES
2000-1 EXPENSE SUBACCOUNT"). The Indenture Trustee shall possess all right,
title and interest in all monies, instruments, investment property and other
property credited from time to time to the Series 2000-1 Expense Subaccount (and
any subaccount thereof) and in all proceeds, earnings, income, revenue,
dividends and distributions

                                       20
<PAGE>

thereof for the benefit of the Series 2000-1 Noteholders and the Series
Enhancer. The Series 2000-1 Expense Subaccount shall be under the sole dominion
and control of the Indenture Trustee for the benefit of the Series 2000-1
Noteholders and the Series Enhancer. Pursuant to the authority granted to the
Servicer in Article III of the Transfer and Servicing Agreement, the Servicer
shall have the power, revocable by the Indenture Trustee, to instruct the
Indenture Trustee to make withdrawals and payments from the Series 2000-1
Expense Subaccount for the purposes of making the payments required under
Section 4.05.

         (b) Funds on deposit in the Series 2000-1 Expense Subaccount shall be
invested in accordance with Section 4.01 of the Transfer and Servicing Agreement
and Section 6.13 of the Indenture. The Indenture Trustee shall bear no
responsibility or liability for any losses resulting from investment or
reinvestment of any funds in accordance with this Section 4.07(b) nor for the
selection of Eligible Investments, except with respect to investments on which
the institution acting as Indenture Trustee is an obligor.

         Section 4.08. Series 2000-1 Principal Subaccount.

         (a) The Issuer, for the benefit of the Noteholders, shall establish and
maintain with the Indenture Trustee or its nominee in the name of the Indenture
Trustee, the Series 2000-1 Principal Subaccount, which shall be a subaccount of
the Collection Account (the "SERIES 2000-1 PRINCIPAL SUBACCOUNT"). The Indenture
Trustee shall possess all right, title and interest in all monies, instruments,
investment property and other property credited from time to time to the Series
2000-1 Principal Subaccount (and any subaccount thereof) and in all proceeds,
earnings, income, revenue, dividends and distributions thereof for the benefit
of the Series 2000-1 Noteholders. The Series 2000-1 Principal Subaccount shall
be under the sole dominion and control of the Indenture Trustee for the benefit
of the Noteholders. Pursuant to the authority granted to the Servicer in Article
III of the Transfer and Servicing Agreement, the Servicer shall have the power,
revocable by the Indenture Trustee, to instruct the Indenture Trustee to make
withdrawals and payments from the Series 2000-1 Principal Subaccount for the
purposes of making the payments required under Section 4.05.

         (b) Funds on deposit in the Series 2000-1 Principal Subaccount shall be
invested in accordance with Section 4.01 of the Transfer and Servicing Agreement
and Section 6.13 of the Indenture. The Indenture Trustee shall bear no
responsibility or liability for any losses resulting from investment or
reinvestment of any funds in accordance with this Section 4.08(b) nor for the
selection of Eligible Investments, except with respect to investments on which
the institution acting as Indenture Trustee is an obligor.

         (c) The Indenture Trustee shall withdraw and transfer funds on deposit
in the Series 2000-1 Principal Subaccount on each Business Day during the
Revolving Period to, or at the direction of, the Issuer if no Series 2000-1
Asset Amount Deficiency has occurred and is continuing and no event that with
the passage of time or the giving of notice could become an Amortization Event,
including a Series 2000-1 Asset Amount Deficiency, would result from such
withdrawal. Any such transfer to the Issuer shall be made free and clear of the
lien of the Indenture and without compliance with Section 12.01(b) of the
Indenture.

                                       21
<PAGE>

         Section 4.09. Liquidity Reserve Account.

         (a) The Issuer, for the benefit of the Series 2000-1 Noteholders and
the Series Enhancer, shall establish and maintain with the Indenture Trustee in
the name of the Indenture Trustee or its nominee, a Qualified Account (including
any subaccounts thereof) bearing a designation clearly indicating that the funds
and other property credited thereto are held for the benefit of the Series
2000-1 Noteholders and the Series Enhancer (the "LIQUIDITY RESERVE ACCOUNT").
The Indenture Trustee shall possess all right, title and interest in all monies,
instruments, investment property and other property credited from time to time
to the Liquidity Reserve Account and in all proceeds, earnings, income, revenue,
dividends and distributions thereof for the benefit of the Series 2000-1
Noteholders and the Series Enhancer. The Liquidity Reserve Account shall be
under the sole dominion and control of the Indenture Trustee for the benefit of
the Series 2000-1 Noteholders and the Series Enhancer. If, at any time, the
Liquidity Reserve Account ceases to be a Qualified Account, the Issuer (or the
Indenture Trustee on its behalf) shall within 10 Business Days (or such longer
period, not to exceed 30 calendar days, as to which each Rating Agency and the
Series Enhancer may consent) establish a new Liquidity Reserve Account meeting
the conditions specified above, transfer any monies, instruments, investment
property and other property to such new Liquidity Reserve Account and from the
date such new Liquidity Reserve Account is established, it shall be deemed to be
the Liquidity Reserve Account. Pursuant to the authority granted to the Servicer
in Article III of the Transfer and Servicing Agreement, the Servicer shall have
the power, revocable by the Indenture Trustee, to instruct the Indenture Trustee
to make withdrawals and payments from the Series 2000-1 Liquidity Reserve
Account for the purposes of making the payments required under Section 4.05.

         (b) On the Series 2000-1 Closing Date, the Issuer deposited $4,597,084
into the Liquidity Reserve Account. Funds on deposit in the Liquidity Reserve
Account shall at the written direction of the Servicer be invested by the
Indenture Trustee in Eligible Investments selected by the Servicer. All such
Eligible Investments shall be held by the Indenture Trustee for the benefit of
the Series 2000-1 Noteholders in accordance with Section 6.13 of the Indenture.
Funds on deposit in the Liquidity Reserve Account will be invested in Eligible
Investments that will mature so that such funds will be available no later than
the close of business on the succeeding Transfer Date. No such Eligible
Investment shall be disposed of prior to its maturity; provided, however, that
the Indenture Trustee may sell, liquidate or dispose of an Eligible Investment
before its maturity, at the written direction of the Issuer, if such sale,
liquidation or disposal would not result in a loss of all or part of the
principal portion of such Eligible Investment or if, prior to the maturity of
such Eligible Investment, a default occurs in the payment of principal, interest
or any other amount with respect to such Eligible Investment. Unless directed by
the Servicer, funds deposited in the Liquidity Reserve Account on a Transfer
Date with respect to the immediately succeeding Distribution Date are not
required to be invested overnight. On each Distribution Date, all interest and
other investment earnings (net of losses and investment expenses) on funds on
deposit in the Liquidity Reserve Account shall be withdrawn and applied as
Series 2000-1 Collections in accordance with the priority of distribution set
forth in Section 4.01(c). The Indenture Trustee shall bear no responsibility or
liability for any losses resulting from investment or reinvestment of any funds
in accordance with this Section 4.09(c) nor for the selection of Eligible
Investments in accordance with the

                                       22
<PAGE>

provisions of this Indenture and any Indenture Supplement, except with respect
to investments on which the institution acting as Indenture Trustee is an
obligor.

         Section 4.10. Determination of LIBOR.

         (a) On each LIBOR Determination Date, the Paying Agent shall determine
LIBOR on the basis of the rate for deposits in United States dollars for a
one-month period which appears on Telerate Page 3750 as of 11:00 a.m., London
time, on such date. If such rate does not appear on Telerate Page 3750, the rate
for that LIBOR Determination Date shall be determined on the basis of the rates
quoted by the Reference Banks to the Paying Agent as the rates at which deposits
in United States dollars are offered by the Reference Banks to the Paying Agent
at approximately 11:00 a.m., London time, on that day to prime banks in the
London interbank market for a one-month period. The Paying Agent shall request
the principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two such quotations are provided, the rate
for that LIBOR Determination Date shall be the arithmetic mean of the
quotations. If fewer than two quotations are provided as requested, the rate for
that LIBOR Determination Date will be the arithmetic mean of the rates quoted by
major banks in New York City, selected by the Paying Agent, at approximately
11:00 a.m., New York City time, on that day for loans in United States dollars
to leading European banks for a one-month period.

         (b) The Note Interest Rate applicable to the then current and the
immediately preceding Interest Periods may be obtained by telephoning the Paying
Agent at its corporate trust office at (212) 815-5192 or such other telephone
number as shall be designated by the Paying Agent for such purpose by prior
written notice by the Paying Agent to each Series 2000-1 Noteholder and the
Series Enhancer from time to time.

         Section 4.11. Investment Instructions. Any investment instructions
required to be given to the Indenture Trustee pursuant to the terms hereof must
be given to the Indenture Trustee no later than 11:00 a.m. (New York City time)
on the date such investment is to be made. If the Indenture Trustee receives
such investment instruction later than such time, the Indenture Trustee may, but
shall have no obligation to, make such investment. If the Indenture Trustee is
unable to make an investment required in an investment instruction received by
the Indenture Trustee after 11:00 a.m. (New York City time) on such day, such
investment shall be made by the Indenture Trustee on the next succeeding
Business Day. In no event shall the Indenture Trustee be liable for any
investment not made pursuant to investment instructions received after 11:00
a.m. (New York City time) on the day such investment is requested to be made.

                               [END OF ARTICLE IV]

                                       23
<PAGE>

                                    ARTICLE V

                        Delivery of Series 2000-1 Notes;
               Distributions; Reports to Series 2000-1 Noteholders

         Section 5.01. Delivery and Payment for the Series 2000-1 Notes;
Denominations.

         The Issuer shall execute and the Authentication Agent shall
authenticate the Series 2000-1 Notes in accordance with Section 2.03 of the
Indenture. The Indenture Trustee shall deliver the Series 2000-1 Notes to or
upon the order of the Issuer when so authenticated.

         The Series 2000-1 Notes shall be issuable in the minimum denomination
of $250,000 and in integral multiples of $1,000 in excess thereof.

         Section 5.02. Registration; Registration of Transfer and Exchange;
Transfer Restrictions.

         (a) The Series 2000-1 Notes have not been registered under the
Securities Act or any state securities law. None of the Issuer, the Registrar or
the Indenture Trustee is obligated to register the Series 2000-1 Notes under the
Securities Act or any other securities or "Blue Sky" laws or to take any other
action not otherwise required under the Agreement to permit the transfer of any
Series 2000-1 Note without registration.

         (b) No transfer of any Series 2000-1 Note or any interest therein
(including, without limitation, by pledge or hypothecation) shall be made except
in compliance with the restrictions on transfer set forth in this Section 5.02
(including the applicable legend to be set forth on the face of each Series
2000-1 Note as provided in Exhibits A-1, A-2 and A-3, as applicable) and in
Section 5.04 and Section 5.06 in a transaction exempt from the registration
requirements of the Securities Act and applicable state securities or "Blue Sky"
laws (i) to a person (A) who the transferor reasonably believes is a "qualified
institutional buyer" within the meaning thereof in Rule 144A (a "QIB") in the
form of beneficial interest in the Rule 144A Global Note, and (B) that is aware
that the resale or other transfer is being made in reliance on Rule 144A or (ii)
in an offshore transaction in accordance with Rule 903 or Rule 904 of Regulation
S, in the form of beneficial interests in the applicable Regulation S Global
Note.

         (c) Each Beneficial Owner of a Series 2000-1 Note, by its acceptance
thereof, will be deemed to have acknowledged, represented to and agreed with the
Issuer and the Initial Purchasers as follows:

         (i)      It understands that the Series 2000-1 Notes will be offered
                  and may be resold by an Initial Purchaser (A) in the United
                  States to QIBs pursuant to Rule 144A in the form of beneficial
                  interests in the Rule 144A Global Note or (B) outside the
                  United States pursuant to Regulation S, initially in the form
                  of beneficial interests in the Temporary Regulation S Global
                  Note. As set forth in Section 5.04(a), beneficial interests in
                  the Temporary Regulation S Global Note may be exchanged for
                  beneficial interests in the Permanent Regulation S Global
                  Note.

                                       24
<PAGE>

         (ii)     It understands that the Series 2000-1 Notes have not been and
                  will not be registered under the Securities Act or any state
                  or other applicable securities law and that the Series 2000-1
                  Notes, or any interest or participation therein, may not be
                  offered, sold, pledged or otherwise transferred unless
                  registered pursuant to, or exempt from registration under, the
                  Securities Act and any other applicable securities law.

         (iii)    It acknowledges that none of the Issuer or any Initial
                  Purchaser or any person representing the Issuer or any Initial
                  Purchaser has made any representation to it with respect to
                  the Issuer or the offering or sale of any Series 2000-1 Notes,
                  other than the information contained in the Offering
                  Memorandum, which has been delivered to it and upon which it
                  is relying in making its investment decision with respect to
                  the Series 2000-1 Notes. It has had access to such financial
                  and other information concerning the Issuer and the Series
                  2000-1 Notes as it has deemed necessary in connection with its
                  decision to purchase the Series 2000-1 Notes.

         (iv)     It acknowledges that the Series 2000-1 Notes will bear a
                  legend to the following effect unless the Issuer determines
                  otherwise, consistent with applicable law:

                  "THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
                  UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
                  "SECURITIES ACT"), OR ANY STATE SECURITIES LAW. THE HOLDER
                  HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE OR ANY
                  INTEREST OR PARTICIPATION HEREIN, MAY BE REOFFERED, RESOLD,
                  PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE
                  SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) TO THE
                  ISSUER, (2) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT TO
                  A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
                  INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE
                  SECURITIES ACT (A "QIB") PURCHASING FOR ITS OWN ACCOUNT OR A
                  QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS
                  INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR
                  OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A UNDER
                  THE SECURITIES ACT OR (3) IN AN OFFSHORE TRANSACTION IN
                  ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE
                  SECURITIES ACT. EACH NOTE OWNER BY ACCEPTING A BENEFICIAL
                  INTEREST IN THIS NOTE, UNLESS SUCH PERSON ACQUIRED THIS NOTE
                  IN A TRANSFER DESCRIBED IN CLAUSE (3) ABOVE, IS DEEMED TO
                  REPRESENT THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN
                  ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB.

                  PRIOR TO PURCHASING ANY NOTES, PURCHASERS SHOULD CONSULT
                  COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF
                  EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. THE
                  ISSUER HAS NOT AGREED TO REGISTER THE NOTES UNDER THE
                  SECURITIES ACT, TO QUALIFY THE NOTES

                                       25
<PAGE>

                  UNDER THE SECURITIES LAWS OF ANY STATE OR TO PROVIDE
                  REGISTRATION RIGHTS TO ANY PURCHASER.

                  AS SET FORTH HEREIN, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS
                  NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
                  HEREOF."

         (v)      If it is acquiring any Series 2000-1 Note, or any interest or
                  participation therein, as a fiduciary or agent for one or more
                  investor accounts, it represents that it has sole investment
                  discretion with respect to such account and that it has full
                  power to make the acknowledgements, representations and
                  agreements contained herein on behalf of each such account.

         (vi)     It (A)(1) is a QIB, (2) is aware that the sale to it is being
                  made in reliance on Rule 144A and if it is acquiring such
                  Series 2000-1 Notes or any interest or participation therein
                  for the account of another QIB, such other QIB is aware that
                  the sale is being made in reliance on Rule 144A and (3) is
                  acquiring such Series 2000-1 Notes or any interest or
                  participation therein for its own account or for the account
                  of a QIB, or (B) is not a U.S. person and is purchasing such
                  Series 2000-1 Notes or any interest or participation therein
                  in an offshore transaction meeting the requirements of Rule
                  903 or 904 of Regulation S.

         (vii)    It is purchasing the Series 2000-1 Notes for its own account,
                  or for one or more investor accounts for which it is acting as
                  fiduciary or agent, in each case for investment, and not with
                  a view to, or for offer or sale in connection with, any
                  distribution thereof in violation of the Securities Act,
                  subject to any requirements of law that the disposition of its
                  property or the property of such investor account or accounts
                  be at all times within its or their control and subject to its
                  or their ability to resell such Series 2000-1 Notes, or any
                  interest or participation therein, as described in the
                  Offering Memorandum and as provided in the Agreement.

         (viii)   It agrees that if in the future it should offer, sell or
                  otherwise transfer such Series 2000-1 Note or any interest or
                  participation therein, it will do so only (A) to the Issuer,
                  (B) pursuant to Rule 144A to a person who it reasonably
                  believes is a QIB in a transaction meeting the requirements of
                  Rule 144A, purchasing for its own account or for the account
                  of a QIB, whom it has informed that such offer, sale or other
                  transfer is being made in reliance on Rule 144A or (C) in an
                  offshore transaction meeting the requirements of Rule 903 or
                  Rule 904 of Regulation S.

         (ix)     If it is acquiring such Series 2000-1 Note or any interest or
                  participation therein in an "offshore transaction" (as defined
                  in Regulation S), it acknowledges that the Series 2000-1 Notes
                  initially will be represented by the Temporary Regulation S
                  Global Note and that transfers thereof or any interest or
                  participation therein are restricted as described in the
                  Offering

                                       26
<PAGE>

                  Memorandum and as provided in the Agreement. If it is a QIB,
                  it acknowledges that the Series 2000-1 Notes offered in
                  reliance on Rule 144A will be represented by a Rule 144A
                  Global Note and that transfers thereof or any interest or
                  participation therein are restricted as described in the
                  Offering Memorandum and as provided in the Agreement.

         (x)      It understands that the Temporary Regulation S Global Note
                  will bear a legend to the following effect unless the Issuer
                  determines otherwise, consistent with applicable law:

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

                  NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE
                  ENTITLED TO RECEIVE PAYMENT OF PRINCIPAL OR INTEREST HEREON
                  UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED
                  PURSUANT TO THE TERMS OF THE INDENTURE."

         (xi)     It acknowledges that the Issuer, the Initial Purchasers and
                  others will rely on the truth and accuracy of the foregoing
                  acknowledgments, representations and agreements, and agrees
                  that if any of the foregoing acknowledgments, representations
                  and agreements deemed to have been made by it are no longer
                  accurate, it shall promptly notify the Issuer and the Initial
                  Purchasers.

         (xii)    With respect to any foreign purchaser claiming an exemption
                  from United States income or withholding tax, that it has
                  delivered to the Paying Agent a true and complete Form W-8,
                  Form 1001 or Form 4224, indicating such exemption.

         (xiii)   It acknowledges that transfers of the Series 2000-1 Notes or
                  any interest or participation therein shall otherwise be
                  subject in all respects to the restrictions applicable thereto
                  contained in the Agreement.

         Any transfer, resale, pledge or other transfer of the Series 2000-1
Notes contrary to the restrictions set forth above and in the Indenture shall be
deemed void ab initio by the Transfer Agent and Registrar. As used in this
Section 5.02, the terms "United States" and "U.S. persons" have the meaning
given them in Regulation S.

         (d) Notwithstanding anything to the contrary contained herein, each
Series 2000-1 Note and the Agreement may, with prior written notice to the
Series Enhancer, be amended or supplemented to modify the restrictions on and
procedures for resale and other transfers of the Series 2000-1 Notes to reflect
any change in applicable law or regulation (or the interpretation thereof) or in
practices relating to the resale or transfer of restricted securities

                                       27
<PAGE>

generally. Each Noteholder shall by its acceptance of a Series 2000-1 Note have
agreed to any such amendment or supplement.

         (e) Holders of a beneficial interest in Series 2000-1 Notes sold in
reliance on Regulation S as Temporary Regulation S Global Notes are prohibited
from receiving distributions or from exchanging beneficial interests in such
Temporary Regulation S Global Notes for a beneficial interest in a Permanent
Regulation S Global Note until the later of (i) the expiration of the
Distribution Compliance Period (the "RELEASE DATE") and (ii) the furnishing of a
certificate, substantially in the form of Exhibit E-2 attached hereto,
certifying that the beneficial owner of the Temporary Regulation S Global Note
is a non-United States Person (a "REGULATION S CERTIFICATE") as provided in
Section 5.04.

         Section 5.03. Global Notes. The Series 2000-1 Notes, upon original
issuance, will be issued (i) in fully registered global form without interest
coupons to QIBs in transactions exempt from the registration requirements of the
Securities Act in reliance on Rule 144A, as a single note in fully registered
form, without interest coupons (the "RULE 144A GLOBAL NOTE"), authenticated and
delivered in substantially the form attached hereto as Exhibit A-1 and/or (ii)
as a single note in "offshore transactions" (within the meaning of Regulation
S), in fully registered form, without interest coupons (the "TEMPORARY
REGULATION S GLOBAL NOTE"), authenticated and delivered in substantially the
form attached hereto as Exhibit A-2. Such Notes shall be delivered to The
Depository Trust Company, the initial Clearing Agency by or on behalf of the
Issuer and initially shall be registered on the Note Register in the name of
Cede & Co., the nominee of the initial Clearing Agency, and no Beneficial Owner
will receive a Definitive Note representing such Beneficial Owner's interest in
such Note, except as provided in Section 2.13 of the Indenture.

         Section 5.04. Regulation S Global Notes.

         (a) Series 2000-1 Notes issued in reliance on Regulation S initially
will be in the form of a Temporary Regulation S Global Note. Any interest in a
Series 2000-1 Note evidenced by the Temporary Regulation S Global Note is
exchangeable for an interest in a Series 2000-1 Note in fully registered, global
form, without interest coupons, authenticated and delivered in substantially the
form attached hereto as Exhibit A-3 (the "PERMANENT REGULATION S GLOBAL NOTE")
upon the later of (i) the Release Date and (ii) the furnishing of a Regulation S
Certificate.

         (b) i) On or prior to the Release Date, each Beneficial Owner of a
Temporary Regulation S Global Note shall deliver to Euroclear or Clearstream
Banking (as applicable) a Regulation S Certificate; provided, however, that any
Beneficial Owner of a Temporary Regulation S Global Note on the Release Date or
on any payment date that has previously delivered a Regulation S Certificate
hereunder shall not be required to deliver any subsequent Regulation S
Certificate (unless the certificate previously delivered is no longer true as of
such subsequent date, in which case such Beneficial Owner shall promptly notify
Euroclear or Clearstream Banking, as applicable, thereof and shall deliver an
updated Regulation S Certificate). Euroclear and/or Clearstream Banking, as
applicable, shall deliver to the Paying Agent a certificate substantially in the
form of Exhibit E-1 (a "NON-U.S. CERTIFICATE") attached hereto promptly upon the
receipt of each such Regulation S Certificate, and no such Beneficial

                                       28
<PAGE>

Owner (or transferee from such Beneficial Owner) shall be entitled to receive an
interest in a Permanent Regulation S Global Note or any payment of principal of
or interest on or any other payment with respect to its beneficial interest in a
Temporary Regulation S Global Note prior to the Paying Agent receiving such
Non-U.S. Certificate from Euroclear or Clearstream Banking with respect to the
portion of the Temporary Regulation S Global Note owned by such Beneficial Owner
(and, with respect to an interest in the Permanent Regulation S Global Note,
prior to the Release Date).

         (c) Any payments of principal of, interest on or any other payment on a
Temporary Regulation S Global Note received by Euroclear or Clearstream Banking
with respect to any portion of such Regulation S Global Note owned by a
Beneficial Owner that has not delivered the Regulation S Certificate required by
this Section 5.04 shall be held by Euroclear and Clearstream Banking solely as
agents for the Paying Agent. Euroclear and Clearstream Banking shall remit such
payments to the applicable Beneficial Owner (or to a Euroclear or Clearstream
Banking member on behalf of such Beneficial Owner) only after Euroclear or
Clearstream Banking has received the requisite Regulation S Certificate. Until
the Paying Agent has received a Non-U.S. Certificate from Euroclear or
Clearstream Banking, as applicable, stating that it has received the requisite
Regulation S Certificate with respect to the beneficial ownership of any portion
of a Temporary Regulation S Global Note, the Paying Agent may revoke the right
of Euroclear or Clearstream Banking, as applicable, to hold any payments made
with respect to such portion of such Temporary Regulation S Global Note. If the
Paying Agent exercises its right of revocation pursuant to the immediately
preceding sentence, Euroclear or Clearstream Banking, as applicable, shall
return such payments to the Paying Agent and the Paying Agent shall hold such
payments in the Distribution Account until Euroclear or Clearstream Banking, as
applicable, has provided the necessary Non-U.S. Certificates to the Paying Agent
(at which time the Paying Agent shall forward such payments to Euroclear or
Clearstream Banking, as applicable, to be remitted to the Beneficial Owner that
is entitled thereto on the records of Euroclear or Clearstream Banking (or on
the records of their respective members)).

         (d) Each Beneficial Owner with respect to a Temporary Regulation S
Global Note shall exchange its interest therein for an interest in a Permanent
Regulation S Global Note on or after the Release Date upon furnishing to
Euroclear or Clearstream Banking (as applicable) the Regulation S Certificate
and upon receipt by the Paying Agent of the Non-U.S. Certificate thereof from
Euroclear or Clearstream Banking, as applicable, in each case pursuant to the
terms of this Section 5.04. On and after the Release Date, upon receipt by the
Paying Agent of any Non-U.S. Certificate from Euroclear or Clearstream Banking
described in the immediately preceding sentence (i) with respect to the first
such certification, the Issuer shall execute and, upon receipt of an order to
authenticate, the Authentication Agent shall authenticate and deliver to the
Custodian the applicable Permanent Regulation S Global Note and (ii) with
respect to the first and all subsequent certifications, the Custodian shall
exchange on behalf of the applicable Beneficial Owners the portion of the
applicable Temporary Regulation S Global Note covered by such certification for
a comparable portion of the applicable Permanent Regulation S Global Note. Upon
any exchange of a portion of a Temporary Regulation S Global Note for a
comparable portion of a Permanent Regulation S Global Note, the Custodian shall
endorse on the schedules affixed to each of such Regulation S Global Notes (or
on continuations of such schedules affixed to each of such Regulation S Global
Notes and made parts thereof) appropriate

                                       29
<PAGE>

notations evidencing the date of transfer and (x) with respect to the Temporary
Regulation S Global Note, a decrease in the principal amount thereof equal to
the amount covered by the applicable certification and (y) with respect to the
Permanent Regulation S Global Note, an increase in the principal amount thereof
equal to the principal amount of the decrease in the Temporary Regulation S
Global Note pursuant to clause (x) above.

         Section 5.05. Special Transfer Provisions.

         (a) If a holder of a beneficial interest in the Rule 144A Global Note
wishes at any time to exchange its interest in the Rule 144A Global Note for an
interest in the Regulation S Global Note, or to transfer its interest in the
Rule 144A Global Note to a person who wishes to take delivery thereof in the
form of an interest in the Regulation S Global Note, such holder may, subject to
the rules and procedures of the Clearing Agency and to the requirements set
forth in the following sentence, exchange or cause the exchange or transfer or
cause the transfer of such interest for an equivalent beneficial interest in the
Regulation S Global Note. Upon receipt by Transfer Agent and Registrar of (1)
instructions given in accordance with the Clearing Agency's procedures from or
on behalf of a Beneficial Owner of the Rule 144A Global Note, directing the
Transfer Agent and Registrar (via DWAC) to credit or cause to be credited a
beneficial interest in the Regulation S Global Note in an amount equal to the
beneficial interest in the Rule 144A Global Note to be exchanged or transferred,
(2) a written order in accordance with the Clearing Agency's procedures
containing information regarding the Euroclear or Clearstream Banking account to
be credited with such increase and the name of such account and (3) a
certificate given by such holder stating that the exchange or transfer of such
interest has been made pursuant to and in accordance with Rule 903 or Rule 904
of Regulation S under the Securities Act, the Transfer Agent and Registrar shall
promptly deliver appropriate instructions to the Clearing Agency (via DWAC), its
nominee or the Custodian, as the case may be, to reduce or reflect on its
records a reduction of the Rule 144A Global Note by the aggregate principal
amount of the beneficial interest in the Rule 144A Global Note to be so
exchanged or transferred from the relevant participant, and the Transfer Agent
and Registrar shall promptly deliver appropriate instructions (via DWAC) to the
Clearing Agency, its nominee, or the Custodian, as the case may be, concurrently
with such reduction, to increase or reflect on its records an increase of the
principal amount of such Regulation S Global Note by the aggregate principal
amount of the beneficial interest in the Rule 144A Global Note to be so
exchanged or transferred, and to credit or cause to be credited to the account
of the person specified in such instructions (who may be Morgan Guaranty Trust
Company of New York, Brussels office, as operator of Euroclear or Clearstream
Banking or another agent member of Euroclear or Clearstream Banking, or both, as
the case may be, acting for and on behalf of them) a beneficial interest in such
Regulation S Global Note equal to the reduction in the principal amount of the
Rule 144A Global Note. Notwithstanding anything to the contrary, the Transfer
Agent and Registrar may conclusively rely upon the completed schedule set forth
in the certificate evidencing the Notes.

         (b If a holder of a beneficial interest in the Regulation S Global Note
wishes at any time to exchange its interest in the Regulation S Global Note for
an interest in the Rule 144A Global Note, or to transfer its interest in the
Regulation S Global Note to a person who wishes to take delivery thereof in the
form of an interest in the Rule 144A Global Note, such holder may, subject to
the rules and procedures of Euroclear or Clearstream Banking and the

                                       30
<PAGE>

Clearing Agency, as the case may be, and to the requirements set forth in the
following sentence, exchange or cause the exchange or transfer or cause the
transfer of such interest for an equivalent beneficial interest in the Rule 144A
Global Note. Upon receipt by the Transfer Agent and Registrar of (1)
instructions given in accordance with the procedures of Euroclear or Clearstream
Banking and the Clearing Agency, as the case may be, from or on behalf of a
Beneficial Owner of the Regulation S Global Note directing the Transfer Agent
and Registrar to credit or cause to be credited a beneficial interest in the
Rule 144A Global Note in an amount equal to the beneficial interest in the
Regulation S Global Note to be exchanged or transferred, (2) a written order
given in accordance with the procedures of Euroclear or Clearstream Banking and
the Clearing Agency, as the case may be, containing information regarding the
account with the Clearing Agency to be credited with such increase and the name
of such account and (3) prior to the expiration of the Distribution Compliance
Period, a certificate given by such Beneficial Owner stating that the person
transferring such interest in such Regulation S Global Note reasonably believes
that the person acquiring such interest in the Rule 144A Global Note is a QIB
and is obtaining such beneficial interest for its own account or the account of
a QIB in a transaction meeting the requirements of Rule 144A and any applicable
securities laws of any state of the United States or any other jurisdiction, the
Transfer Agent and Registrar shall promptly deliver (via DWAC) appropriate
instructions to the Clearing Agency, its nominee or the Custodian, as the case
may be, to reduce or reflect on its records a reduction of the Regulation S
Global Note by the aggregate principal amount of the beneficial interest in such
Regulation S Global Note to be exchanged or transferred, and the Transfer Agent
and Registrar shall promptly deliver (via DWAC) appropriate instructions to the
Clearing Agency, its nominee, or the Custodian, as the case may be, concurrently
with such reduction, to increase or reflect on its records an increase of the
principal amount of the Rule 144A Global Note by the aggregate principal amount
of the beneficial interest in the Regulation S Global Note to be so exchanged or
transferred, and to credit or cause to be credited to the account of the person
specified in such instructions a beneficial interest in the Rule 144A Global
Note equal to the reduction in the principal amount of the Regulation S Global
Note. After the expiration of the Distribution Compliance Period, the
certification requirement set forth in clause (3) of the second sentence of this
Section 5.05 shall no longer apply to such exchanges and transfers.
Notwithstanding anything to the contrary, the Transfer Agent and Registrar may
conclusively rely upon the completed schedule set forth in the certificate
evidencing the Notes.

         (c) Any beneficial interest in one of the Global Notes that is
transferred to a person who takes delivery in the form of an interest in the
other Global Note will, upon transfer, cease to be an interest in such Global
Note and become an interest in the other Global Note and, accordingly, will
thereafter be subject to all transfer restrictions and other procedures
applicable to beneficial interests in such other Global Note for as long as it
remains such an interest.

         (d) Until the later of the Release Date and the provision of the
certifications required by Section 5.04, beneficial interests in a Regulation S
Global Note may only be held through Morgan Guaranty Trust Company of New York,
Brussels office, as operator of Euroclear or Clearstream Banking or another
agent member of Euroclear and Clearstream Banking acting for and on behalf of
them. During the Distribution Compliance Period, interests in the Regulation S
Global Note may be exchanged for interests in the Rule 144A Global Note only in
accordance with the certification requirements described above.

                                       31
<PAGE>

         Section 5.06. CUSIP Numbers. The Issuer in issuing the Series 2000-1
Notes may use "CUSIP" numbers and, if so, the Paying Agent may use "CUSIP"
numbers in notices of redemption as a convenience to Series 2000-1 Noteholders;
provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Series 2000-1 Notes or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Series 2000-1 Notes, and any
such redemption shall not be affected by any defect in or omission of such
numbers. The Issuer shall promptly notify the Paying Agent of any change in the
"CUSIP" numbers.

         Section 5.07. Distributions.

         (a) On each Distribution Date, the Paying Agent shall distribute to
each Series 2000-1 Noteholder of record on the related Record Date such Series
2000-1 Noteholder's pro rata share of amounts on deposit in the Distribution
Account as are payable to the Series 2000-1 Noteholders pursuant to Section 4.05
and Section 4.06(b).

         (b) Distributions to Series 2000-1 Noteholders hereunder shall be made
by (i) check mailed to each Series 2000-1 Noteholder (at such Series 2000-1
Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2000-1 Notes registered in the name of the nominee of a
Clearing Agency, such distribution shall be made in immediately available funds
and (ii) without presentation or surrender of any Series 2000-1 Note or the
making of any notation thereon.

         Section 5.08. Reports and Statements to Series 2000-1 Noteholders.

         (a) On each Distribution Date, the Paying Agent shall forward to each
Series 2000-1 Noteholder and the Series Enhancer a statement substantially in
the form of Exhibit C prepared by the Servicer and delivered to the Paying
Agent. The Paying Agent shall have no liability for the Servicer's failure to
provide such statement to it.

         (b) On or before January 31 of each calendar year, beginning with
calendar year 2001, the Paying Agent shall furnish or cause to be furnished to
each Person and the Series Enhancer who at any time during the preceding
calendar year was a Series 2000-1 Noteholder, a statement prepared by the
Servicer containing the information required to be contained in the statement to
Series 2000-1 Noteholders and the Series Enhancer, as set forth in paragraph (a)
above, aggregated for such calendar year or the applicable portion thereof
during which such Person was a Series 2000-1 Noteholder or the Series Enhancer,
together with such other information as is required to be provided by an issuer
of indebtedness under the Code. Such obligation of the Paying Agent shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Paying Agent pursuant to any requirements
of the Code as from time to time in effect.

                               [END OF ARTICLE V]

                                       32
<PAGE>

                                   ARTICLE VI

                              Amortization Events

         Section 6.01. Series 2000-1 Amortization Events. Upon the
occurrence and continuance of any of the following events:

         (a) (i) failure on the part of the Issuer to pay principal of and
interest on the Series 2000-1 Notes in full on or before the Final Stated
Maturity Date (determined without giving effect to any payments on the Series
2000-1 Notes made with proceeds of draws under the Policy), or to pay accrued
interest on the Series 2000-1 Notes in full on any Distribution Date, and such
failure remains unremedied for one Business Day (determined without giving
effect to any payments on the Series 2000-1 Notes made with proceeds of draws
under the Policy), or (ii) failure on the part of the Issuer to maintain its
separate existence or duly to perform or observe any covenant set forth in
Section 3.03(a), (c), (d), (e), (f), (g) or (j) of the Indenture, which failure
continues unremedied for a period of ten calendar days, or (iii) failure on the
part of the Issuer duly to perform or observe any other covenants or agreements
of the Issuer set forth in the Indenture or this Indenture Supplement, which
failure has a Material Adverse Effect with respect to the Issuer or the
interests of the Series 2000-1 Noteholders (determined without giving effect to
any credit enhancement under the Policy) and which continues unremedied for a
period of 30 days, in each case, after the date on which written notice of such
failure, requiring the same to be remedied, has been given to the Issuer by the
Indenture Trustee, or to the Issuer and the Indenture Trustee by the Holders of
not less than a majority of the Series Outstanding Amount;

         (b) any representation or warranty made by the Issuer in this Indenture
Supplement or the Indenture proves to have been incorrect in any material
respect when made or when delivered, and continues to be incorrect in any
material respect for a period of 30 days after the date on which written notice
of such failure, requiring the same to be remedied, shall have been given to the
Issuer by the Indenture Trustee, or to the Issuer and the Indenture Trustee by
the Holders of not less than a majority of the Series Outstanding Amount, and as
a result of which the interests of the Series 2000-1 Noteholders are materially
and adversely affected for such period (determined without giving effect to any
credit enhancement under the Policy);

         (c) a Servicer Default;

         (d) a CMSC Purchase Termination Event under the Purchase Agreement, an
ARSC Purchase Termination Event under the Receivables Purchase Agreement or
Transfer Termination Event under the Transfer and Servicing Agreement;

         (e) other than an Event of Default described in clause (s) below, an
Event of Default with respect to the Series 2000-1 Notes;

         (f) a Series 2000-1 Asset Amount Deficiency, which Series 2000-1 Asset
Amount Deficiency continues for any five consecutive Business Days;

         (g) the amount on deposit in the Liquidity Reserve Account Amount is
less than the Required Liquidity Reserve Account Amount for any five consecutive
Business Days;

         (h) the amount on deposit in the Marketing Expenses Account is less
than the Required Marketing Expenses Account Amount for any five consecutive
Business Days;

                                       33
<PAGE>

         (i)      (i) the Average Days in Inventory for Appraised Value Homes
         equals or exceeds 210 days for any Monthly period; or

                  (ii) the average of the Average Days in Inventory for
         Appraised Value Homes for any Monthly Period and for the immediately
         preceding five Monthly Periods equals or exceeds 180 days; or

                  (iii) the Average Days in Inventory for Homes other than
         Appraised Value Homes equals or exceeds 60 days for any Monthly Period;
         or

                  (iv) the average of the Average Days in Inventory for Homes
         other than Appraised Value Homes for any Monthly Period and for the
         immediately preceding five Monthly Periods equals or exceeds 40 days;

         (j) the Default Ratio for any Monthly Period exceeds 7.0%, or the Three
Month Average Default Ratio for any Monthly Period exceeds 6.0%;

         (k) the Dilution Ratio for any Monthly Period exceeds 2.25%, or the
Three Month Average Dilution Ratio for any Monthly Period exceeds 1.50%;

         (l) Net Credit Losses for any Monthly Period exceed $750,000 and for
any 12 consecutive Monthly Periods exceed $1,500,000;

         (m) the failure to vest and maintain in the Indenture Trustee a
perfected first priority security interest in the Pledged Assets;

         (n) either (i) the Internal Revenue Service files notice of a lien
pursuant to Section 6323 of the Internal Revenue Code with respect to any of the
ARSC Purchased Assets, and such Lien has not been released within five days or,
if released, proved to the satisfaction of the Rating Agencies, or (ii) the PBGC
files, or indicates its intention to file a notice of a lien pursuant to Section
4068 of ERISA with respect to any of the Pledged Assets;

         (o) an Insolvency Event occurs with respect to the Series Enhancer;

         (p) any of the Purchase Agreement, the Receivables Purchase Agreement,
the Transfer and Servicing Agreement, the Indenture, this Indenture Supplement,
the Insurance Agreement or any related documents cease, for any reason, to be in
full force and effect, other than in accordance with its terms;

         (q) a failure on the part of CMSC, as the Servicer, to cooperate with
the transfer of the servicing to a successor Servicer following the delivery of
a Termination Notice pursuant to the Transfer and Servicing Agreement, which
failure is determined by the Majority Investors to be material and continues
unremedied for a period of ten calendar days after the date on which written
notice of such failure, requiring the same to be remedied, has been given to the
Issuer by the Indenture Trustee, or to the Issuer and the Indenture Trustee by
the Holders of a majority of the Series Outstanding Amount;

         (r) an Event of Bankruptcy shall occur with respect to the Issuer, the
Transferor, the Performance Guarantor, CMSC or CMF; or

                                       34
<PAGE>

         (s) an Event of Default arising from a determination that the Issuer is
required to be registered under the Investment Company Act of 1940;

then, in the case of any event described in clauses (a) through (e), (g), (h)
and (j) through (q) an "AMORTIZATION EVENT" will be deemed to have occurred only
if, after the applicable grace period, if any, set forth in such clauses, either
the Indenture Trustee or the Holders of not less than a majority of the Series
Outstanding Amount by notice then given in writing to the Issuer and the
Servicer (and to the Indenture Trustee if given by the Series 2000-1
Noteholders) may declare that an Amortization Event has occurred as of the date
of such notice, in the case of any event described in clauses (f) and (i), an
Amortization Event will occur at the close of business on the fifth Business Day
following the occurrence of such event without any notice or other action on the
part of the Indenture Trustee or the Series 2000-1 Noteholders unless prior to
that time the Holders of not less than a majority of the Series Outstanding
Amount by notice then given in writing to the Issuer, the Servicer and the
Indenture Trustee declare that an Amortization Event will not result from the
occurrence of such event and, in the case of any event described in clauses (r)
or (s), an Amortization Event shall occur immediately upon the occurrence of
such event without any notice or other action on the part of the Indenture
Trustee or the Series 2000-1 Noteholders.

         Section 6.02. Cross-Defaults. The Issuer will not include in any
Indenture Supplement for any Series of Notes (other than Series 2000-1) an
amortization event which would allow such Series to amortize based on the
occurrence of an Amortization Event.

                               [END OF ARTICLE VI]

                                       35
<PAGE>

                                   ARTICLE VII

                  Optional Redemption of Series 2000-1 Notes

          Section 7.01 Optional Redemption of Series 2000-1 Notes.

         (a) On any Business Day occurring on or after the date on which the
Series Outstanding Amount is reduced to an amount equal to or less than 10% of
the Initial Series Outstanding Amount, the Issuer shall have the option to
redeem the Series 2000-1 Notes, at a redemption price equal to (i) if such day
is a Distribution Date, the Redemption Price for such Distribution Date or (ii)
if such day is not a Distribution Date, the Redemption Price for the immediately
succeeding Distribution Date.

         (b) The Issuer shall give the Servicer and the Indenture Trustee at
least 30 days prior written notice of the date on which the Issuer intends to
exercise such optional redemption. Not later than 12:00 noon, New York City
time, on such day the Issuer shall deposit into (a) the Series 2000-1 Principal
Subaccount in immediately available funds the excess of the principal portion of
the Redemption Price over the amount, if any, on deposit in the Series 2000-1
Principal Subaccount and (b) the Series 2000-1 Expense Subaccount in immediately
available funds the excess of the interest portion of the Redemption Price over
the amount, if any, of the Monthly Interest on deposit in the Series 2000-1
Expense Subaccount. The portion of the Redemption Price relating to amounts
owing to the Series Enhancer shall be paid directly to the Series Enhancer on
such day Such redemption option is subject to payment in full of the Redemption
Price. Upon payment and distribution of the Redemption Price and the reduction
in the Series Outstanding Amount to zero, the Series 2000-1 Noteholders and the
Series Enhancer shall have no further interest in the Pledged Assets. The
Redemption Price shall be distributed as set forth in Section 4.05.

                              [END OF ARTICLE VII]

                                       36
<PAGE>

                                  ARTICLE VIII

                          Miscellaneous Provisions

         Section 8.01. Ratification of Agreement. As supplemented by this
Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so supplemented by this Indenture Supplement shall be read,
taken and construed as one and the same instrument.

         Section 8.02. Counterparts. This Indenture Supplement may be
executed in two or more counterparts, and by different parties on separate
counterparts, each of which shall be an original, but all of which shall
constitute one and the same instrument.

         Section 8.03. Governing Law. THIS INDENTURE SUPPLEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
INCLUDING ss.5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT OTHERWISE
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.

         Section 8.04. Series Enhancer Deemed Series 2000-1 Noteholder.
Except for any period during which a Series Enhancer Default is continuing, the
Series Enhancer shall be deemed to be the Holder of 100% of the Series 2000-1
Notes for the purposes of giving any consents, waivers, approvals, instructions,
directions, declarations, notices and/or taking any other action pursuant to the
Indenture, this Indenture Supplement and the other Transaction Documents. So
long as no Series Enhancer Default shall have occurred and be continuing, the
Series Enhancer shall have the right to exercise all rights of the Holders of
the Series 2000-1 Notes under the Transaction Documents without any consent of
such Holders, and such Holders may exercise such rights only with the prior
written consent of the Series Enhancer, except as otherwise expressly provided
herein. Any reference in the Indenture or the Transaction Documents to
materially, adversely, or detrimentally affecting the rights or interests of the
Noteholders, or words of similar meaning, shall be deemed, for purposes of the
Series 2000-1 Notes, to refer to the rights or interests of the Series Enhancer.

         Section 8.05. Subrogation. In furtherance of and not in limitation
of the Series Enhancer's equitable right of subrogation, each of the Indenture
Trustee and the Issuer acknowledge that, to the extent of any payment made by
the Series Enhancer under the Policy with respect to interest on or principal of
the Series 2000-1 Notes, the Series Enhancer is to be fully subrogated to the
extent of such payment and any additional interest due on any late payment, to
the rights of the Series 2000-1 Noteholders under the Indenture and this
Indenture Supplement. Each of the Issuer and the Indenture Trustee agree to such
subrogation and, further, agree to take such actions as the Series Enhancer may
reasonably request to evidence such subrogation.

                                       37
<PAGE>

         Section 8.06. Certain Rights of the Series Enhancer.

         (a) The Series Enhancer is an express third-party beneficiary of the
Indenture to the extent of provisions relating to any Series Enhancer and this
Indenture Supplement.

         (b) The Indenture Trustee shall provide to the Series Enhancer upon
request copies of any report, notice, opinion of counsel, officer's certificate,
request for consent or request for amendment to any Transaction Document
promptly upon the Indenture Trustee's production or receipt thereof (in each
case, to the extent that such documents are not expressly required to be
provided directly to the Series Enhancer pursuant to the terms of the
Transaction Documents).

         (c) Subject, in each case, to Section 6.03(d) of the Indenture, the
Indenture Trustee shall cooperate in all respect with any reasonable request by
the Series Enhancer for action to preserve or enforce the Series Enhancer's
rights or interests under the Indenture, this Indenture Supplement and the other
Transaction Documents, including, without limitation, a request to institute
proceedings for collection of all amounts then owing in respect of the Series
2000-1 Notes or the Insurance Premium.

         (d) The Indenture Trustee shall, upon reasonable prior written request,
permit any representative of the Series Enhancer, during the Indenture Trustee's
normal business hours, to examine all books of accounts, records, reports and
other information of the Indenture Trustee relating to the Series 2000-1 Notes
and the Pledged Assets, to make copies and extracts therefrom and to discuss the
Indenture Trustee's performance of its duties with respect to the Transaction
Documents with the responsible officers and employees of the Indenture Trustee.

         (e) The Series Enhancer shall be deemed to be an Applicable Series
Enhancer for purposes of the Indenture.

                              [END OF ARTICLE VIII]

                            [SIGNATURE PAGE FOLLOWS]

                                       38
<PAGE>

                  IN WITNESS WHEREOF, the undersigned have caused this Indenture
Supplement to be duly executed and delivered by their respective duly authorized
officers on the day and year first above written.

                                   APPLE RIDGE FUNDING LLC,
                                     as Issuer

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

                                   BANK ONE, NATIONAL ASSOCIATION,
                                     as Indenture Trustee

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

                                   THE BANK OF NEW YORK,
                                     as Paying Agent, Authentication Agent
                                     and Transfer Agent and Registrar

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

                    [Signature Page to Indenture Supplement]

<PAGE>

DISTRICT OF COLUMBIA           )
                               ) ss.:

COUNTY OF __________________   )

         BEFORE ME, the undersigned authority, a Notary Public in and for said
County and State, on this day personally appeared _______________ known to me to
be the person and officer whose name is subscribed to the foregoing instrument
and acknowledged to me that the same was the act of the said Delaware limited
liability company and that she/he executed the same as the corporation for the
purpose and consideration therein stated.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of __________,
2000.

                                                  -----------------------------
                                                  Notary Public

                                                  [Seal]

My commission expires:

------------------------------

<PAGE>

STATE OF NEW YORK        )
                         ) ss.:

COUNTY OF NEW YORK       )

         BEFORE ME, the undersigned authority, a Notary Public in and for said
County and State, on this day personally appeared Steve M. Husbands known to me
to be the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the said national
banking organization and that she/he executed the same as the corporation for
the purpose and consideration therein stated.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of __________,
2000.

                                                 ------------------------------
                                                 Notary Public

                                                 [Seal]

My commission expires:

------------------------------------

<PAGE>

STATE OF NEW YORK           )
                            ) ss.:

COUNTY OF _____________     )

         BEFORE ME, the undersigned authority, a Notary Public in and for said
County and State, on this day personally appeared ________________ known to me
to be the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the said New York
banking corporation and that she/he executed the same as the corporation for the
purpose and consideration therein stated.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of __________,
2000.

                                                  -----------------------------
                                                  Notary Public

                                                  [Seal]

My commission expires:

------------------------------<PAGE>

                                                                  EXECUTION COPY

                               PURCHASE AGREEMENT

                           Dated as of April 25, 2000

                                 by and between

                      CENDANT MOBILITY SERVICES CORPORATION

                                  as Originator

                                       and

                     CENDANT MOBILITY FINANCIAL CORPORATION

                                    as Buyer

<PAGE>

                                TABLE OF CONTENTS
                                                                            PAGE

                                    ARTICLE I

                                   DEFINITIONS

                                   ARTICLE II

                           SALE AND PURCHASE OF ASSETS

Section 2.1       Sale and Purchase............................................1

Section 2.2       Purchases....................................................3

Section 2.3       No Assumption................................................3

Section 2.4       No Recourse..................................................3

Section 2.5       True Sales...................................................4

Section 2.6       Servicing of CMSC Purchased Assets...........................4

Section 2.7       Financing Statements.........................................4

                                   ARTICLE III

                        CALCULATION OF CMF PURCHASE PRICE

Section 3.1       Calculation of the CMF Purchase Price........................4

                                   ARTICLE IV

                         PAYMENT OF CMF PURCHASE PRICE.

Section 4.1       CMF Purchase Price Payments..................................5

Section 4.2       The CMF Subordinated Note....................................5

Section 4.3       Originator Adjustments.......................................5

Section 4.4       Payments and Computations, Etc...............................7

                                    ARTICLE V

                              CONDITIONS PRECEDENT

Section 5.1       Conditions Precedent to Sales and Purchases..................8

Section 5.2       Conditions Precedent to CMF Subordinated Loans...............8

                                      -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)
                                                                            PAGE

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

Section 6.1       Representations and Warranties of the Originator.............8

Section 6.2       Representations and Warranties of the Buyer.................14

                                   ARTICLE VII

                                GENERAL COVENANTS

Section 7.1       Affirmative Covenants of the Originator.....................14

Section 7.2       Reporting Requirements......................................18

Section 7.3       Negative Covenants of the Originator........................20

Section 7.4       Affirmative Covenants of the Buyer..........................22

                                  ARTICLE VIII

                      ADDITIONAL RIGHTS AND OBLIGATIONS IN
                      RESPECT OF THE CMSC PURCHASED ASSETS

Section 8.1       Rights of the Buyer.........................................23

Section 8.2       Responsibilities of the Originator..........................24

Section 8.3       Further Action Evidencing Purchases.........................24

Section 8.4       CMSC Collections; Rights of the Buyer and its Assignees.....25

                                   ARTICLE IX

                                   TERMINATION

Section 9.1       CMF Purchase Termination Events.............................26

Section 9.2       Purchase Termination........................................27

                                    ARTICLE X

                       INDEMNIFICATION; SECURITY INTEREST

Section 10.1      Indemnities by the Originator...............................28

Section 10.2      Security Interest...........................................30

                                      -ii-
<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)
                                                                            PAGE

                                   ARTICLE XI

                                  MISCELLANEOUS

Section 11.1      Amendments; Waivers, Etc....................................30

Section 11.2      Notices, Etc................................................30

Section 11.3      Cumulative Remedies.........................................31

Section 11.4      Binding Effect; Assignability; Survival of Provisions.......31

Section 11.5      Governing Law...............................................31

Section 11.6      Costs, Expenses and Taxes...................................31

Section 11.7      Submission to Jurisdiction..................................31

Section 11.8      Waiver of Jury Trial........................................32

Section 11.9      Integration.................................................32

Section 11.10     Captions and Cross References...............................33

Section 11.11     Execution in Counterparts...................................33

Section 11.12     Acknowledgment and Consent..................................33

Section 11.13     No Partnership or Joint Venture.............................34

Section 11.14     No Proceedings..............................................34

Section 11.15     Severability of Provisions..................................34

Section 11.16     Recourse to the Buyer.......................................34

Section 11.17     Confidentiality.............................................34

                                     -iii-
<PAGE>

                                    APPENDIX

APPENDIX A         Definitions

                                    SCHEDULES

SCHEDULE 2.1       List of Pool Relocation Management Agreements

SCHEDULE 6.1(n)    List of Offices

SCHEDULE 6.1(s)    List of Legal Names

SCHEDULE 11.2      Notice Addresses

                                    EXHIBITS

EXIBIT 2.1         Form of Notice of Additional Pool Relocation Management
                   Agreements

EXHIBIT 4.2        Form of CMF Subordinated Note

EXHIBIT 6.1(u)     Credit and Collection Policy

EXHIBIT 7.3(j)     Form of Acknowledgment Letter

EXHIBIT C          Forms of Contracts

                                      -iv-
<PAGE>

                               PURCHASE AGREEMENT

         THIS PURCHASE AGREEMENT (this "AGREEMENT") dated as of April 25, 2000
made by and between CENDANT MOBILITY SERVICES CORPORATION, a Delaware
corporation, as originator (the "ORIGINATOR") and Cendant Mobility Financial
Corporation, a Delaware corporation, as buyer (the "BUYER").

         WHEREAS, the Originator wishes to sell Receivables and Related Assets
that it now owns and Receivables and Related Assets that it from time to time
hereafter will own to the Buyer, and the Buyer is willing to purchase such
Receivables and Related Assets from the Originator from time to time, on the
terms and subject to the conditions contained in this Agreement; and

         WHEREAS, the Buyer intends to transfer the CMSC Purchased Assets,
together with additional Receivables and Related Assets that the Buyer from time
to time hereafter will own, to Apple Ridge Services Corporation ("ARSC") from
and after the Closing Date pursuant to the terms of the Receivables Purchase
Agreement;

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Capitalized terms used and not otherwise defined in this Agreement have
the meanings specified in Part A of Appendix A. In addition, this Agreement
shall be interpreted in accordance with the conventions set forth in Parts B, C
and D of Appendix A.

                                   ARTICLE II

                           SALE AND PURCHASE OF ASSETS

         Section 2.1 Sale and Purchase.

         (a) Agreement. Upon the terms and subject to the conditions hereof, the
Buyer agrees to buy, and the Originator agrees to sell, all of the Originator's
right, title and interest in and to the following:

<PAGE>

              (i) all Receivables owned by the Originator at the close of
    business on the Business Day preceding the Closing Date or thereafter
    created and arising (collectively, the "ORIGINATOR RECEIVABLES");

              (ii) all Related Property with respect to the Originator
    Receivables (collectively, the "ORIGINATOR RELATED PROPERTY");

              (iii) all CMSC Collections;

              (iv) all proceeds of and earnings on any of the foregoing; and

              (v) all of the right, title and interest, if any, CMSC has in, to
    or under the CMF Designated Receivables, including all Related Property with
    respect thereto, rights, if any, to reimbursement of, or interest on, such
    CMF Designated Receivables and all proceeds thereof;

it being understood and agreed that the Originator does not hereby sell,
transfer or convey any of its right, title or interest in any Excluded Assets or
Excluded Contracts.

         The items listed above in clauses (ii), (iii) and (iv), whenever and
wherever arising, are collectively referred to herein as the "ORIGINATOR RELATED
ASSETS." The Originator Receivables and the Originator Related Assets are
sometimes collectively referred to herein as the "ORIGINATOR ASSETS."

         It is the intent of the parties hereto that CMSC not have any right,
title, or interest in, to, or under the CMF Designated Receivables or the other
property listed in clause (v) above, and such CMF Designated Receivables and
other property is included in the property being sold hereunder solely in case
it should be determined, contrary to the intent of the parties hereto, that CMSC
does have any right, title, or interest in the CMF Designated Receivables or the
other property listed in clause (v) above.

         As used herein, "CMSC RECEIVABLES" means Originator Receivables that
are being Purchased or have been Purchased by the Buyer hereunder; "CMSC RELATED
PROPERTY" means Originator Related Property that is being Purchased or has been
Purchased by the Buyer hereunder; "CMSC RELATED ASSETS" means Originator Related
Assets that are being Purchased or have been Purchased by the Buyer hereunder;
and "CMSC PURCHASED ASSETS" means Originator Assets that are being Purchased or
have been Purchased by the Buyer hereunder.

         Schedule 2.1 sets forth a list of all Relocation Management Agreements
subject to this Agreement (each, a "POOL RELOCATION MANAGEMENT AGREEMENT") as of
the Closing Date. Each new Relocation Management Agreement that is not an
Excluded Contract and that is entered into by the Originator during any month
shall be added to the Pool Relocation Management Agreements on or after the last
day of such month by delivering a written notice in the form of Exhibit 2.1 to
the Buyer or its designee, whereupon Schedule 2.1 shall be amended by the
Originator to add such new Relocation Management Agreement to the list of Pool
Relocation Management Agreements set forth therein. A copy of such Exhibit 2.1
appended to

                                       2
<PAGE>

the Receivables Activity Report for such month, upon delivery to the Indenture
Trustee, shall be sufficient evidence of inclusion. On or prior to the date of
the delivery of any such notice, the Originator shall indicate, or cause to be
indicated, in its computer files, books and records that the CMSC Receivables
and other CMSC Purchased Assets then existing and thereafter created pursuant to
or in connection with each such Pool Relocation Management Agreement are being
transferred to the Buyer pursuant to this Agreement.

         (b) Treatment of Certain Receivables and Related Assets. It is
expressly understood that (i) each CMSC Receivable sold to the Buyer hereunder,
together with all CMSC Related Assets then existing or thereafter created and
arising with respect thereto, will thereafter be the property of the Buyer (or
its assignees), without the necessity of any further purchase or other action by
the Buyer (other than satisfaction of the conditions set forth herein) and (ii)
the change of a Receivable's status from that of Unsold Home Receivable to
Unbilled Receivable or from Unbilled Receivable to Billed Receivable shall not
be deemed the creation of a new Receivable for any purpose.

         Section 2.2 Purchases. On the Closing Date, the Buyer shall purchase
all of the Originator's right, title and interest in and to all Originator
Assets and any property described in clause (v) of Section 2.1(a) existing as of
the close of business on the immediately preceding Business Day. On each
Business Day thereafter until the Termination Date, the Buyer shall purchase all
of the Originator's right, title and interest in and to all Originator Assets
and any property described in clause (v) of Section 2.1(a) existing as of the
close of business on the immediately preceding Business Day that were not
previously purchased by the Buyer hereunder. Notwithstanding the foregoing, if
an Insolvency Proceeding is pending with respect to either the Originator or the
Buyer prior to the Termination Date, the Originator shall not sell, and the
Buyer shall not buy, any Originator Assets hereunder unless and until such
Insolvency Proceeding is dismissed or otherwise terminated.

         Section 2.3 No Assumption. The sales and Purchases of CMSC Purchased
Assets do not constitute and are not intended to result in a creation or an
assumption by the Buyer or its successors and assigns of any obligation of the
Originator or any other Person in connection with the CMSC Purchased Assets
(other than any such obligations as may arise from the ownership of CMSC
Receivables) or under the related Contracts or any other agreement or instrument
relating thereto, including without limitation any obligation to any Obligors or
Transferred Employees. None of the Servicer, the Buyer or the Buyer's assignees
shall have any obligation or liability to any Obligor, Transferred Employee or
other customer or client of the Originator (including without limitation any
obligation to perform any of the obligations of the Originator under any
Relocation Management Agreement, CMSC Home Purchase Contract, CMSC Related
Property or any other agreement), except such obligations as may arise from the
ownership of the CMSC Receivables. Except as expressly provided in Section
3.05(k) of the Transfer and Servicing Agreement, no such obligation or liability
to any Obligor, Transferred Employee or other customer or client of the
Originator is intended to be assumed by the Servicer or its successors and
assigns hereunder or under the Transfer and Servicing Agreement, and any such
assumption is expressly disclaimed.

                                       3
<PAGE>

         Section 2.4 No Recourse. Except as specifically provided in this
Agreement, the sale and Purchase of the CMSC Purchased Assets and any interest
of CMSC in and to the CMF Designated Receivables and other property described in
clause (v) of Section 2.1(a) under this Agreement shall be without recourse to
the Originator; provided, however, that the Originator shall be liable to the
Buyer for all representations, warranties, covenants and indemnities made by it
pursuant to the terms of this Agreement (it being understood that such
obligations of the Originator will not arise solely on account of the
credit-related inability of an Obligor to pay a Receivable).

         Section 2.5 True Sales. The Originator and the Buyer intend the
transfers of CMSC Purchased Assets hereunder to be true sales by the Originator
to the Buyer that are absolute and irrevocable and to provide the Buyer with the
full benefits of ownership of the CMSC Purchased Assets, and neither the
Originator nor the Buyer intends the transactions contemplated hereunder to be,
or for any purpose to be characterized as, loans from the Buyer to the
Originator, secured by the CMSC Purchased Assets.

         Section 2.6 Servicing of CMSC Purchased Assets. Consistent with the
Buyer's ownership of all CMSC Purchased Assets and subject to the terms of the
Pool Relocation Management Agreements, as between the parties to this Agreement,
the Buyer shall have the sole right to service, administer and collect all CMSC
Purchased Assets, to assign such right and to delegate such right to others. In
consideration of the Buyer's purchase of the CMSC Purchased Assets and as more
fully set forth in Section 11.12, the Originator hereby acknowledges and agrees
that the Buyer intends to assign for the benefit of ARSC and its successors and
assigns the rights and interests granted by the Originator to the Buyer
hereunder, and agrees to cooperate fully with the Issuer and its successors and
assigns in the exercise of such rights.

         Section 2.7 Financing Statements. In connection with the transfer
described above, the Originator agrees, at its expense, to record and file
financing statements (and continuation statements when applicable) with respect
to the CMSC Purchased Assets conveyed by the Originator meeting the requirements
of applicable law in such manner and in such jurisdictions as are necessary to
perfect and maintain the perfection of the transfer and assignment of its
interest in the CMSC Purchased Assets to the Buyer, and to deliver a file
stamped copy of each such financing statement or other evidence of such filing
to the Buyer as soon as practicable after the Closing Date; provided, however,
that prior to recordation pursuant to Section 8.3 or the sale of a CMSC Home to
an Ultimate Buyer, record title to such CMSC Home may remain in the name of the
related Transferred Employee and no recordation in real estate records of the
conveyance pursuant to the related CMSC Home Purchase Contract or CMSC Home Sale
Contract shall be made except as otherwise required or permitted under Section
2.01(d)(i) of the Transfer and Servicing Agreement.

                                       4
<PAGE>

                                   ARTICLE III

                        CALCULATION OF CMF PURCHASE PRICE

         Section 3.1 Calculation of the CMF Purchase Price.

         (a) On each Business Day from and including the Closing Date to but
excluding the Termination Date, the Originator shall deliver to the Buyer an
accounting (each, a "DAILY ORIGINATOR REPORT") with respect to (i) the Purchases
of CMSC Purchased Assets to be made on such Business Day and (ii) the CMF
Purchase Price to be paid on account of the foregoing as calculated in
accordance with this Section 3.1.

         (b) With respect to the Purchase of any CMSC Purchased Assets by the
Buyer from the Originator pursuant to Article II, (i) on the Closing Date, the
Buyer shall pay to the Originator a purchase price equal to $654,199,874, and
(ii) on any day thereafter, the Buyer shall pay to the Originator a purchase
price equal to the fair market value thereof, using a discount rate and expected
collection period to be recalculated monthly based on the Buyer's weighted cost
of funds and Average Days Outstanding for the prior month and assuming a
reasonable return on the Buyer's equity (each such purchase price, the "CMF
PURCHASE PRICE"), and adjusted to reflect such factors as the Originator and the
Buyer mutually agree will result in a CMF Purchase Price determined to be the
fair market value of such CMSC Purchased Assets. The sale of the property
described in clause (v) of Section 2.1(a) is in consideration of CMF funding the
CMF Designated Receivables or the obligation of the Issuer to reimburse the
Servicer for advances in respect of such CMF Designated Receivables.

                                   ARTICLE IV

                          PAYMENT OF CMF PURCHASE PRICE

         Section 4.1 CMF Purchase Price Payments. On the terms and subject to
the conditions of this Agreement, the Buyer shall pay to the Originator on the
Closing Date the CMF Purchase Price for the CMSC Purchased Assets sold on such
date, by paying such CMF Purchase Price to the Originator in cash. On the terms
and subject to the conditions of this Agreement, the Buyer shall pay to the
Originator, on each other Business Day on which any CMSC Purchased Assets are
purchased from the Originator by the Buyer pursuant to Article II, the CMF
Purchase Price for such CMSC Purchased Assets by paying such CMF Purchase Price
to the Originator in cash.

         Section 4.2 The CMF Subordinated Note. On the Closing Date, the Buyer
shall deliver to the Originator the CMF Subordinated Note in the form set forth
as Exhibit 4.2. Subject to the limitations set forth in the CMF Subordinated
Note, the Originator irrevocably agrees to make each advance (each, a "CMF
SUBORDINATED LOAN") requested by the Buyer on or prior to the Termination Date
for the sole purposes of acquiring CMF Homes pursuant to CMF Home Purchase
Contracts (including the making of Equity Payments), making Mortgage Payoffs and
Mortgage Payments with respect to CMF Homes and making Seller Adjustments under
the Receivables Purchase Agreement. No advance shall be made under the CMF

                                       5
<PAGE>

Subordinated Note on any date if the aggregate principal amount outstanding
thereunder on such date, after giving effect to such advance, would exceed an
amount equal to five times the net worth of the Buyer (such maximum amount
required to be advanced at any time, the "CMF SUBORDINATED NOTE CAP"). The CMF
Subordinated Loans shall be evidenced by, and shall be payable as provided in,
the CMF Subordinated Note. Notwithstanding any other provision of this
Agreement, under no circumstances shall funds borrowed under the CMF
Subordinated Note be used for the purpose of paying the CMF Purchase Price for
the CMSC Purchased Assets.

         Section 4.3 Originator Adjustments.

         (a) With respect to any CMSC Receivable purchased by the Buyer from the
Originator, if on any day the Buyer (or its assigns), the Servicer or the
Originator determines that (i) such CMSC Receivable (A) was not identified by
the Originator in the Daily Originator Report as other than an Eligible
Receivable on the Business Day such CMSC Receivable was sold hereunder or (B)
was otherwise treated as or represented to be an Eligible Receivable in any
Receivables Activity Report, but was not in fact an Eligible Receivable on such
date or (ii) any of the representations or warranties set forth in Section
6.1(d) or 6.1(k) was not true when made with respect to such CMSC Receivable or
the related CMSC Related Assets (each such CMSC Receivable described in clause
(i) or clause (ii), a "CMSC NONCOMPLYING ASSET"), then the Originator shall pay
the aggregate Unpaid Balance of such CMSC Receivables (such payment, a "CMSC
NONCOMPLYING ASSET ADJUSTMENT") to the Buyer in accordance with Section 4.3(c).

         (b) If on any day the Unpaid Balance of any CMSC Receivable (i) is
reduced as a result of any cash discount or any adjustment by the Originator or
any Affiliate of the Originator (other than the Buyer, ARSC or the Issuer), (ii)
is subject to reduction on account of any offsetting account payable of the
Originator to an Obligor or is reduced or cancelled as a result of a set-off in
respect of any claim by, or defense or credit of, the related Obligor against
the Originator or any Affiliate of the Originator (other than the Buyer, ARSC or
the Issuer) (whether such claim, defense or credit arises out of the same or a
related or an unrelated transaction) or (iii) is reduced on account of the
obligation of the Originator to pay to the related Obligor any rebate or refund
(each of the reductions and cancellations described above in clauses (i) through
(iii), an "ORIGINATOR DILUTION ADJUSTMENT"), then the Originator shall pay such
Originator Dilution Adjustment to the Buyer in accordance with Section 4.3(c).

         (c) On each Business Day, the Originator shall pay to the Buyer, in
cash in accordance with Section 4.4, an amount (an "ORIGINATOR ADJUSTMENT")
equal to the sum of (A) the aggregate Originator Dilution Adjustment, if any,
for each day from and including the immediately preceding Business Day plus (B)
the CMSC Noncomplying Asset Adjustment, if any, for each day from and including
the immediately preceding Business Day. The CMSC Receivables that gave rise to
any Originator Dilution Adjustment and any related CMSC Related Assets shall
remain the property of the Buyer. From and after the day on which any CMSC
Noncomplying Asset Adjustment is made, any collections received by the Buyer
that are identified as proceeds of the Receivables that gave rise to such CMSC
Noncomplying Asset Adjustment and any Related Property with respect to such
Receivable shall be promptly returned to the Originator.

                                       6
<PAGE>

         Section 4.4 Payments and Computations, Etc. All amounts to be paid by
the Originator to the Buyer hereunder shall be paid in accordance with the terms
hereof no later than 11:00 a.m. (New York time) on the day when due in United
States dollars in immediately available funds to an account specified in writing
from time to time by the Buyer or its designee. Payments received by the Buyer
after such time shall be deemed to have been received on the next Business Day.
If any payment becomes due on a day that is not a Business Day, then such
payment shall be made on the next succeeding Business Day. The Originator shall
pay to the Buyer, on demand, interest on all amounts not paid when due hereunder
at a rate equal to the Prime Rate plus 2% per annum; provided, however, that
such interest rate shall not at any time exceed the maximum rate permitted by
applicable law. All computations of interest payable hereunder shall be made on
the basis of a year of 360 days for the actual number of days elapsed (including
the first day but excluding the last day). All payments made under this
Agreement shall be made without set-off or counterclaim.

                                    ARTICLE V

                              CONDITIONS PRECEDENT

         Section 5.1 Conditions Precedent to Sales and Purchases. No Purchase of
CMSC Purchased Assets shall be made hereunder on any date on which the Buyer
does not have sufficient funds available to pay the CMF Purchase Price in cash.

         Section 5.2 Conditions Precedent to CMF Subordinated Loans. The
Originator's obligation to make each CMF Subordinated Loan under this Agreement
shall be subject to the conditions precedent that on the date of such CMF
Subordinated Loan:

              (a) the CMF Subordinated Note shall have been duly executed and
    delivered by the Buyer and shall be in full force and effect;

              (b) no Event of Bankruptcy shall have occurred and be continuing
    with respect to the Buyer; and

              (c) after giving effect to such CMF Subordinated Loan, the
    aggregate outstanding principal amount of the CMF Subordinated Note shall
    not exceed the CMF Subordinated Note Cap.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

         Section 6.1 Representations and Warranties of the Originator. In order
to induce the Buyer to enter into this Agreement and to make Purchases
hereunder, the Originator hereby makes the representations and warranties set
forth in this Section 6.1, in each case as of

                                       7
<PAGE>

the date hereof, as of the Closing Date, as of the date of each Purchase
hereunder and as of any other date specified in such representation and
warranty.

         (a) Organization and Good Standing. The Originator is a corporation
duly organized and validly existing in good standing under the laws of the State
of Delaware and has full power and authority to own its properties and to
conduct its business as such properties are presently owned and such business is
presently conducted. The Originator had at all relevant times, and now has, all
necessary power, authority and legal right to own and sell the CMSC Purchased
Assets.

         (b) Due Qualification. The Originator is duly qualified to do business,
is in good standing as a foreign corporation, and has obtained all necessary
licenses and approvals in all jurisdictions in which the ownership or lease of
property or the conduct of its business requires such qualification, licenses or
approvals and in which the failure so to qualify or to obtain such licenses and
approvals or to preserve and maintain such qualification, licenses or approvals
could reasonably be expected to give rise to a Material Adverse Effect.

         (c) Power and Authority: Due Authorization. The Originator (i) has all
necessary corporate power and authority (A) to execute and deliver this
Agreement, the Contracts and the other Transaction Documents to which it is a
party, (B) to perform its obligations under this Agreement, the Contracts and
the other Transaction Documents to which it is a party and (C) to sell and
assign the CMSC Purchased Assets transferred hereunder on and after such date,
on the terms and subject to the conditions herein and therein provided and (ii)
has duly authorized by all necessary corporate action such sale and assignment
and the execution, delivery and performance of, and the consummation of the
transactions provided for in, this Agreement, the Contracts and the other
Transaction Documents to which it is a party.

         (d) Valid Sale; Binding Obligations. This Agreement constitutes a valid
sale, transfer, set-over and conveyance to the Buyer of all of the Originator's
right, title and interest in, to and under the CMSC Receivables transferred
hereunder on such date, which is perfected and of first priority (subject to
Permitted Liens and Permitted Exceptions) under the UCC and other applicable
law, enforceable against creditors of, and purchasers from, the Originator, free
and clear of any Lien (other than Permitted Liens); and this Agreement
constitutes, and each other Transaction Document to which the Originator is a
party when duly executed and delivered will constitute, a legal, valid and
binding obligation of the Originator, enforceable against the Originator in
accordance with its terms, except (i) as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors' rights generally and (ii) as such
enforceability may be limited by general principles of equity, regardless of
whether such enforceability is considered in a proceeding in equity or at law.
The Originator has no right, title or interest in or to any CMF Home, CMF Home
Purchase Contract or any Receivable created or arising under any CMF Home
Purchase Contract.

         (e) No Conflict or Violation. The execution, delivery and performance
of, and the consummation of the transactions contemplated by, this Agreement and
the other Transaction Documents to be signed by the Originator, and the
fulfillment of the terms hereof

                                       8
<PAGE>

and thereof, will not (i) conflict with, result in any breach of any of the
terms and provisions of, or constitute (with or without notice or lapse of time
or both) a material default under (A) the certificate of incorporation or the
by-laws of the Originator or (B) any material indenture, loan agreement,
mortgage, deed of trust or other material agreement or instrument to which the
Originator is a party or by which it or any of its properties is bound, (ii)
result in the creation or imposition of any Lien on any of the CMSC Purchased
Assets pursuant to the terms of any such material indenture, loan agreement,
mortgage, deed of trust or other material agreement or instrument other than
this Agreement and the other Transaction Documents or (iii) conflict with or
violate any federal, state, local or foreign law or any decision, decree, order,
rule or regulation applicable to the Originator or of any federal, state, local
or foreign regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Originator, which conflict or
violation described in this clause (iii), individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

         (f) Litigation and Other Proceedings. (i) There is no action, suit,
proceeding or investigation pending, or to the best knowledge of the Originator
threatened, against the Originator before any court, arbitrator, regulatory
body, administrative agency or other tribunal or governmental instrumentality
and (ii) the Originator is not subject to any order, judgment, decree,
injunction, stipulation or consent order of or with any court or other
government authority that, in the case of either of the foregoing clauses (i) or
(ii), (A) asserts the invalidity of this Agreement or any other Transaction
Document, (B) seeks to prevent the sale of any CMSC Purchased Asset by the
Originator to the Buyer, the creation of a material amount of CMSC Receivables
or the consummation of any of the transactions contemplated by this Agreement or
any other Transaction Document, (C) seeks any determination or ruling that, in
the reasonable judgment of the Originator, would materially and adversely affect
the performance by the Originator of its obligations under this Agreement or any
other Transaction Document to which it is a party or the validity or
enforceability of this Agreement or any other Transaction Document to which it
is a party or (D) individually or in the aggregate for all such actions, suits,
proceedings and investigations could reasonably be expected to have a Material
Adverse Effect.

         (g) Governmental Approvals. Except where the failure to obtain or make
such authorization, consent, order, approval or action could not reasonably be
expected to have a Material Adverse Effect, (i) all authorizations, consents,
orders and approvals of, or other actions by, any Governmental Authority that
are required to be obtained by the Originator in connection with the conveyance
of the CMSC Purchased Assets transferred hereunder on and after such date, or
the due execution, delivery and performance by the Originator of this Agreement
or any other Transaction Document to which it is a party and the consummation of
the transactions contemplated by this Agreement or any other Transaction
Documents to which it is a party have been obtained or made and are in full
force and effect and (ii) all filings with any Governmental Authority that are
required to be obtained in connection with such conveyance and the execution and
delivery by the Originator of this Agreement have been made; provided, however,
that prior to recordation pursuant to Section 8.3 or the sale of a Home to an
Ultimate Buyer, record title to such Home may remain in the name of the related
Transferred Employee and no recordation in real estate records of the conveyance
pursuant to the related Home Purchase Contract or Home Sale Contract shall be
made except as otherwise required or permitted under Section 2.01(d)(i) of the
Transfer and Servicing Agreement.

                                       9
<PAGE>

         (h) Margin Regulations. The Originator is not engaged, principally or
as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying margin stock (within the meanings of
Regulations T, U and X of the Board of Governors of the Federal Reserve System).
The Originator has not taken and will not take any action to cause the use of
proceeds of the sales hereunder to violate said Regulations T, U or X.

         (i) Taxes. The Originator has filed (or there have been filed on its
behalf as a member of a consolidated group) all tax returns and reports required
by law to have been filed by it and has paid all taxes, assessments and
governmental charges thereby shown to be owing by it, other than any such taxes,
assessments or charges (i) that are being diligently contested in good faith by
appropriate proceedings, for which adequate reserves in accordance with GAAP
have been set aside on its books and that have not given rise to any Liens
(other than Permitted Liens) or (ii) the amount of which, either singly or in
the aggregate, would not have a Material Adverse Effect.

         (j) Solvency. After giving effect to the conveyance of CMSC Purchased
Assets hereunder on such date, the Originator is solvent and able to pay its
debts as they come due and has adequate capital to conduct its business as
presently conducted.

         (k) Quality of Title/Valid Transfers.

              (i) Immediately before the Purchase to be made by the Buyer
         hereunder on such date, each CMSC Purchased Asset to be sold to the
         Buyer shall be owned by the Originator free and clear of any Lien
         (other than any Permitted Lien), and the Originator shall have made all
         filings and shall have taken all other action under applicable law in
         each relevant jurisdiction in order to protect and perfect the
         ownership interest of the Buyer and its successors and assigns in such
         CMSC Purchased Assets against all creditors of, and purchasers from,
         the Originator (subject to Permitted Exceptions).

              (ii) With respect to each CMSC Receivable transferred hereunder on
         such date, the Buyer shall acquire a valid and (subject to Permitted
         Exceptions) perfected ownership interest in such CMSC Receivable and
         any identifiable proceeds thereof, free and clear of any Lien (other
         than any Permitted Liens).

              (iii) Immediately prior to the sale of a CMSC Purchased Asset
         hereunder on such date, no effective financing statement or other
         instrument similar in effect that covers all or part of any CMSC
         Purchased Asset or any interest therein is on file in any recording
         office except such as may be filed (A) in favor of the Originator in
         accordance with the Pool Relocation Management Agreements, (B) in favor
         of the Buyer pursuant to this Agreement, (C) in favor of the Buyer's
         successors and assigns pursuant to the Receivables Purchase Agreement,
         the Transfer and Servicing Agreement or the Indenture or otherwise
         filed by or at the direction of the Buyer's successors and assigns or
         (D) to evidence any Mortgage on a CMSC Home created by a Transferred
         Employee.

                                       10
<PAGE>

              (iv) The CMF Purchase Price constitutes reasonably equivalent
         value for the CMSC Purchased Assets conveyed in consideration therefor
         on such date, and no purchase of an interest in such CMSC Purchased
         Assets by the Buyer from the Originator constitutes a fraudulent
         transfer or fraudulent conveyance under the United States Bankruptcy
         Code or applicable state bankruptcy or insolvency laws or is otherwise
         void or voidable or subject to subordination under similar laws or
         principles or for any other reason.

         (l) Eligible Receivables. Each CMSC Receivable included in the CMSC
Purchased Assets transferred hereunder on such date, unless otherwise identified
to the Buyer and its assignees by the Originator in the related Daily Originator
Report, is an Eligible Receivable on such date.

         (m) Accuracy of Information. All written information furnished by the
Originator to the Buyer or its successors and assigns pursuant to or in
connection with any Transaction Document or any transaction contemplated herein
or therein with respect to the CMSC Purchased Assets transferred hereunder on
such date is true and correct in all material respects on such date.

         (n) Offices. The principal place of business and chief executive office
of the Originator is located, and the offices where the Originator keeps all
CMSC Records (and all original documents relating thereto) are located, at the
addresses specified in Schedule 6.1(n), except that (i) Home Deeds and related
documents necessary to close CMSC Home sale transactions, including powers of
attorney, may be held by local attorneys or escrow agents acting on behalf of
the Originator in connection with the sale of CMSC Homes to Ultimate Buyers, so
long as such local attorneys are notified of the interest of the Buyer and the
Buyer's assignees therein and (ii) CMSC Records relating to any Pool Relocation
Management Agreement and the Receivables arising thereunder or in connection
therewith may be maintained at the offices of the related Employer.

         (o) Payment Instructions to Obligors. The Originator has instructed (i)
all Obligors to remit all payments on the CMSC Purchased Assets directly to one
of the Lockboxes or Lockbox Accounts, (ii) all Lockbox Banks to deposit all CMSC
Collections remitted to a Lockbox directly to the related Lockbox Account and
(iii) all Persons receiving CMSC Home Sale Proceeds to deposit such CMSC Home
Sale Proceeds in one of the Lockboxes or Lockbox Accounts within two Business
Days after receipt, except to the extent a longer escrow period is required
under applicable law, in which case such CMSC Home Sale Proceeds shall be
deposited into one of the Lockboxes or Lockbox Accounts within one Business Day
after the expiration of such period.

         (p) Investment Company Act. The Originator is not, and is not
controlled by, an "investment company" registered or required to be registered
under the Investment Company Act.

                                       11
<PAGE>

         (q) Accounting for Certain Assets. (i) If the CMSC Receivables sold on
such date hereunder had not been sold to the Buyer hereunder, and if interests
therein had not been transferred by the Buyer in accordance with the Transaction
Documents, all CMSC Receivables would have been and at all times would be
represented in the financial statements and records of the Originator as
accounts receivable or amounts owed from Obligors in accordance with GAAP
consistently applied by the Originator and (ii) in accordance with GAAP
consistently applied, upon the sale of any CMSC Home to an Ultimate Buyer, any
such obligation relating to any Equity Payment, Mortgage Payoff or Mortgage
Payment with respect to such CMSC Home would be reduced by the amount of the
cash proceeds of the sale of such CMSC Home (in some cases, net of certain
Direct Expenses relating to such CMSC Home).

         (r) ERISA. Each Plan is in compliance with all applicable material
provisions of ERISA, and the Originator or the relevant ERISA Affiliate has
received a favorable determination letter from the Internal Revenue Service that
each Plan intended to be qualified under Section 401(a) of the Code is so
qualified. No Plan has incurred an "accumulated funding deficiency" (within the
meaning of Section 302 of ERISA or Section 412 of the Code), whether or not
waived. Neither the Originator nor any ERISA Affiliate (i) has incurred or
expects to incur any liability under Title IV of ERISA with respect to any Plan
that could give rise to a lien in favor of the PBGC other than liability for the
payment of premiums, all of which have been timely paid when due in accordance
with Section 4007 of ERISA, (ii) has incurred or expects to incur any withdrawal
liability within the meaning of Section 4201 of ERISA, (iii) is subject to any
lien under Section 412(n) of the Code or Sections 302(f) or 4068 of ERISA or
arising out of any action brought under Sections 4070 or 4301 of ERISA or (iv)
is required to provide security to a Plan under Section 401(a)(29) of the Code.
The PBGC has not instituted proceedings to terminate any Plan or to appoint a
trustee or administrator of any such Plan, and no circumstances exist that
constitute grounds under Section 4042 of ERISA to commence any such proceedings.

         (s) Legal Names. Except as described in Schedule 6.1(s), since January
1, 1995, the Originator (i) has not been known by any legal name other than its
corporate name as of the date hereof, except as otherwise permitted pursuant to
Section 7.3(d), (ii) has not been the subject of any merger or other corporate
reorganization that resulted in a change of name, identity or corporate
structure and (iii) has not used any trade names other than its actual corporate
name.

         (t) Compliance with Applicable Laws. The Originator is in compliance
with the requirements of all applicable laws, rules, regulations and orders of
all Governmental Authorities (federal, state, local or foreign, including
without limitation Environmental Laws), a violation of any of which,
individually or in the aggregate for all such violations, is reasonably likely
to have a Material Adverse Effect.

         (u) Credit and Collection Policy. The copy of the Credit and Collection
Policy of the Originator attached as Exhibit 6.1(u) to this Agreement is a true
and complete copy thereof. As of the date each CMSC Purchased Asset is
transferred hereunder, the Originator has complied in all applicable material
respects with the Credit and Collection Policy with respect to such CMSC
Purchased Asset transferred on such date and the related Contract. There has
been

                                       12
<PAGE>

no change to the Credit and Collection Policy that would be reasonably likely to
adversely affect the collectibility of any material portion of the CMSC
Receivables or other CMSC Purchased Assets or to decrease the credit quality of
any newly created CMSC Receivables or other CMSC Purchased Assets.

         (v) Environmental. On such date, to the best knowledge of the
Originator, (i) there are no (A) pending or threatened claims, complaints,
notices or requests for information received by the Originator with respect to
any alleged violation of any Environmental Law in connection with any CMSC Home
relating to any CMSC Receivable transferred hereunder on such date or (B)
pending or threatened claims, complaints, notices or requests for information
received by the Originator regarding potential liability under any Environmental
Law in connection with any CMSC Home relating to any CMSC Receivable transferred
hereunder on such date and (ii) the Originator is in material compliance with
all permits, certificates, approvals, licenses and other authorizations relating
to environmental matters, if any, that are required to be held by it under
applicable law in connection with any CMSC Homes relating to any CMSC Receivable
transferred hereunder on such date, other than those that, in the case of either
clause (i) or (ii), singly or in the aggregate, are not reasonably likely to
have a Material Adverse Effect.

         (w) Pool Relocation Management Agreements. The Pool Relocation
Management Agreements include all Relocation Management Agreements to which the
Originator is a party except for Excluded Contracts.

         (x) Indebtedness for Borrowed Money. As of the Closing Date, the
Originator has no Indebtedness for Borrowed Money.

         Section 6.2 Representations and Warranties of the Buyer. The Buyer
hereby represents and warrants, on and as of the date hereof and on and as of
the Closing Date, that (a) this Agreement has been duly authorized, executed and
delivered by the Buyer and constitutes the Buyer's valid, binding and legally
enforceable obligation, except (i) as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors' rights generally and (ii) as such
enforceability may be limited by general principles of equity, regardless of
whether such enforceability is considered in a proceeding in equity or at law,
(b) the execution, delivery and performance of this Agreement does not violate
any federal, state, local or foreign law applicable to the Buyer or any
agreement to which the Buyer is a party and (c) all of the outstanding capital
stock of the Buyer is directly or indirectly owned by the Originator, and all
such capital stock is fully paid and nonassessable.

                                       13
<PAGE>

                                   ARTICLE VII

                                GENERAL COVENANTS

         Section 7.1 Affirmative Covenants of the Originator. From the Closing
Date until the termination of this Agreement in accordance with Section 11.4,
the Originator hereby agrees that it will perform the covenants and agreements
set forth in this Section 7.1.

         (a) Compliance with Laws, Etc. The Originator will comply in all
material respects with all applicable laws, rules, regulations, judgments,
decrees and orders (including without limitation those relating to the CMSC
Receivables, CMSC Home Purchase Contracts, CMSC Related Assets and all
Environmental Laws affecting any CMSC Home), in each case to the extent that any
such failure to comply, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

         (b) Preservation of Corporate Existence. The Originator (i) will
preserve and maintain its corporate existence, rights, franchises and privileges
in the jurisdiction of its incorporation (other than any change in corporate
status by reason of a merger or consolidation permitted by Section 7.3(c)) and
(ii) will qualify and remain qualified in good standing as a foreign corporation
in each jurisdiction in which the failure to preserve and maintain such
qualification as a foreign corporation could reasonably be expected to have a
Material Adverse Effect.

         (c) Keeping of Records and Books of Account. The Originator will
maintain and implement administrative and operating procedures (including
without limitation an ability to recreate records evidencing the CMSC Purchased
Assets in the event of the destruction of the originals thereof) and will keep
and maintain all documents, books, records and other information that are
necessary or advisable, in the reasonable determination of the Buyer, for the
collection of all amounts due under any or all CMSC Purchased Assets. Upon the
reasonable request of the Buyer or its assignees made at any time after the
occurrence and continuance of an Unmatured Servicer Default or a Servicer
Default, the Originator will deliver copies of all CMSC Records maintained
pursuant to this Section 7.1(c) to the Buyer or its designee. The Originator
will maintain at all times accurate and complete books, records and accounts
relating to the CMSC Purchased Assets and all CMSC Collections, in which timely
entries will be made. The Originator's master data processing records will be
marked to indicate the sales of all CMSC Purchased Assets to the Buyer hereunder
and will include without limitation all payments received and all credits and
extensions granted with respect to the CMSC Purchased Assets.

         (d) Location of Records and Offices. The Originator will keep its
principal place of business and chief executive office and the offices where it
keeps all CMSC Records (and all original documents relating thereto other than
those CMSC Records that are maintained with local attorneys or escrow agents or
at the offices of the relevant Employer as described in Section 6.1(n)) at the
addresses specified in Schedule 6.1(n) or, upon not less than 30 days' prior
written notice given by the Originator to the Buyer and its assignees, at such
other locations in jurisdictions in the United States of America where all
action required by Section 8.3 has been taken and completed.

                                       14
<PAGE>

         (e) Separate Corporate Existence of the Buyer. The Originator hereby
acknowledges that the parties to the Transaction Documents are entering into the
transactions contemplated by the Transaction Documents in reliance on the
Buyer's identity as a legal entity separate from the Originator and the other
CMS Persons. From and after the date hereof until the Final Payout Date, the
Originator will, and will cause each other CMS Person to, take such actions on
the part of the Originator or such CMS Person as shall be required in order
that:

              (i) The Buyer's operating expenses will not be paid by any CMS
    Person, except that certain organizational expenses of the Buyer and
    expenses relating to creation and initial implementation of the Transaction
    Documents have been or will be paid by the Originator;

              (ii) Any financial statements of any CMS Person that are
    consolidated to include the Buyer will contain appropriate footnotes clearly
    stating that (A) all of the Buyer's assets are owned by the Buyer and (B)
    the Buyer is a separate corporate entity with its own separate creditors
    that will be entitled to be satisfied out of the Buyer's assets prior to any
    value in the Buyer becoming available to the Buyer's equity holders;

              (iii) Any transaction between the Buyer and a CMS Person will be
    fair and equitable to the Buyer, will be the type of transaction that would
    be entered into by a prudent Person in the position of the Buyer with a CMS
    Person and will be on terms that are at least as favorable as may be
    obtained from a Person that is not a CMS Person; and

              (iv) No CMS Person will be, or will hold itself out to be,
    responsible for the debts of the Buyer.

         (f) Payment Instruction to Obligors. The Originator will (i) instruct
all Obligors to submit all payments on the CMSC Purchased Assets either (A) to
one of the Lockboxes maintained at the Lockbox Banks for deposit in a Lockbox
Account or (B) directly to one of the Lockbox Accounts and (ii) instruct all
Persons receiving Home Sale Proceeds to deposit such Home Sale Proceeds in one
of the Lockboxes or Lockbox Accounts within two Business Days after such
receipt, except to the extent a longer escrow period is required under
applicable law, in which case such Home Sale Proceeds will be deposited into one
of the Lockboxes or Lockbox Accounts within one Business Day after the
expiration of such period. The Originator will direct all Obligors with respect
to receivables and related assets that are not CMSC Receivables or CMF
Receivables to deposit all collections in respect of such receivables and
related assets in an account that is not a Lockbox or Lockbox Account and will
take such other steps as the Buyer reasonably may request to ensure that all
collections on such receivables and related assets will be segregated from CMSC
Collections and CMF Collections.

         (g) Segregation of Collections. The Originator will use reasonable
efforts to minimize the deposit of any funds other than CMSC Collections or CMF
Collections into any of the Lockbox Accounts and, to the extent that any such
funds are deposited into any of such Lockbox Accounts, promptly will identify
any such funds or will cause such funds to be so

                                       15
<PAGE>

identified to the Servicer, it being understood and agreed that the Originator
does not hereby assume any affirmative duty to re-direct Obligors to remit funds
to alternate locations.

         (h) Identification of Eligible Receivables. The Originator will (i)
establish and maintain necessary procedures for determining, no less frequently
than each date on which a Daily Originator Report is required to be delivered
pursuant to Section 3.1(a), whether each CMSC Receivable qualifies as an
Eligible Receivable, and for identifying on any such date all CMSC Receivables
to be sold to the Buyer on that date that are not Eligible Receivables and (ii)
will provide to the Servicer in a timely manner information that shows whether,
and to what extent, the CMSC Receivables described in such Daily Originator
Report are Eligible Receivables.

         (i) Payment of Taxes. The Originator will file (or there will be filed
on its behalf as a member of a consolidated group) all tax returns and reports
required by law to be filed by it and will pay all taxes, assessments and
governmental charges thereby shown to be owing by it, except for any such taxes,
assessments or charges (i) that are being diligently contested in good faith by
appropriate proceedings, for which adequate reserves in accordance with GAAP
have been set aside on its books and that have not given rise to any Liens
(other than Permitted Liens) or (ii) the amount of which, either singly or in
the aggregate, would not have a Material Adverse Effect.

         (j) Accounting for Certain Assets. To the extent permitted by
applicable law and GAAP, the Originator will (i) prepare all financial
statements that account for the transactions contemplated hereby as a sale of
the CMSC Purchased Assets by the Originator to the Buyer and, in all other
respects, will account for and treat the transactions contemplated hereby
(including but not limited to accounting and (to the extent taxes are not
consolidated) for tax reporting purposes) as a sale of the CMSC Purchased Assets
by the Originator to the Buyer and (ii) maintain and prepare its financial
statements and records in accordance with GAAP, applied in accordance with the
representation contained in Section 6.1(q).

         (k) Receivables Reviews. Upon reasonable prior notice, the Originator
will permit the Buyer or its assignees (or other Persons designated by the Buyer
from time to time) or their agents or representatives (including without
limitation certified public accountants or other auditors), at the expense of
the Originator and during regular business hours, (i) to examine and make copies
of and abstracts from, and to conduct accounting reviews of, all CMSC Records in
the possession or under the control of the Originator, including without
limitation the related Contracts, invoices and other documents related thereto
and (ii) to visit the offices and properties of the Originator for the purpose
of examining any materials described in the preceding clause (i) and to discuss
matters relating to the CMSC Receivables or the other CMSC Purchased Assets or
the performance by the Originator of its obligations under any Transaction
Document to which it is a party with any Authorized Officers of the Originator
having knowledge of such matters or with the Originator's certified public
accountants or other auditors; provided, however, that all such reviews will
occur no more frequently than twice per year (with only the first such review in
any year being at the Originator's expense) unless (i) CMSC is the Servicer and
a Servicer Default has occurred and is continuing or (ii) the Buyer or its
successor or assignee has given advance written notice to the Originator that it
believes the composition and/or performance of

                                       16
<PAGE>

the CMSC Purchased Assets have deteriorated in a manner materially adverse to
the interests of the Buyer or its assignees.

         (l) Computer Software, Hardware and Services. The Originator will
provide the Buyer and its assignees with such licenses, sublicenses and/or
assignments of contracts as the Servicer, the Buyer or the Buyer's assignees
require with respect to all services and computer hardware or software that
relate to the servicing of the CMSC Receivables or the other CMSC Purchased
Assets; provided, however, that with respect to any computer software licensed
from a third party, the Originator will be required to provide such licenses,
sublicenses and/or assignments of such software only to the extent that
provision of the same would not violate the terms of any contracts of the
Originator with such third party.

         (m) Environmental Claims. The Originator will use commercially
reasonable efforts to promptly cure and have dismissed with prejudice to the
satisfaction of the Buyer any actions and any proceedings relating to compliance
with Environmental Laws relating to any CMSC Home, but only to the extent that
the conditions that gave rise to such proceedings were in existence as of the
date on which the Buyer acquired the related CMSC Receivable.

         (n) Turnover of Collections. If the Originator or any of its agents or
representatives at any time receives any cash, checks or other instruments
constituting CMSC Collections or CMF Collections, such recipient will segregate
and hold such payments in trust for, and in a manner acceptable to, the Servicer
and will, promptly upon receipt (and in any event within one Business Day
following receipt) remit all such cash, checks and instruments, duly endorsed or
with duly executed instruments of transfer, to a Lockbox Account.

         (o) Performance and Compliance by Originator with Relocation Management
Agreements. The Originator will, at its expense, timely and fully perform and
comply with all provisions, covenants and other promises required to be observed
by it under the Pool Relocation Management Agreements, the CMSC Home Purchase
Contracts and other Contracts related to the CMSC Purchased Assets.

         (p) Compliance with Credit and Collection Policy. The Originator will
comply in all applicable material respects with the Credit and Collection Policy
with respect to each CMSC Purchased Asset and will not take any action in
violation of the Credit and Collection Policy with respect to any other ARSC
Purchased Asset.

         Section 7.2 Reporting Requirements. From the Closing Date until the
termination of this Agreement in accordance with Section 11.4, the Originator
agrees that it will furnish to the Buyer or its assignees:

         (a) Annual Financial Statements. As soon as available and in any event
within 95 days after the end of each fiscal year of the Performance Guarantor
and the Originator, as applicable, copies of (i) the consolidated balance sheet
of the Performance Guarantor and its consolidated subsidiaries as at the end of
such fiscal year and the related statements of earnings and cash flows and
stockholders' equity of the Performance Guarantor and its consolidated
subsidiaries for such fiscal year, setting forth in each case in comparative
form the corresponding

                                       17
<PAGE>

figures for the preceding fiscal year and prepared in accordance with GAAP
applied consistently throughout the periods reflected therein, certified by
Deloitte & Touche (or such other independent certified public accountants of
nationally recognized standing in the United States of America as shall be
selected by the Performance Guarantor) and (ii) copies of the statements of
earnings of the Originator on a consolidated basis for such fiscal year, setting
forth in each case in comparative form the corresponding figures for the
preceding fiscal year and certified by the chief financial officer, chief
accounting officer or controller of the Originator (it being understood and
agreed that such statements of earnings will be prepared in accordance with the
Originator's customary management accounting practices as in effect on the date
hereof and need not be prepared in accordance with GAAP);

         (b) Material Adverse Effect. Promptly and in any event within two
Business Days after the president, chief financial officer, controller or
treasurer of the Originator has actual knowledge thereof, written notice that
describes in reasonable detail any event or occurrence with respect to CMSC
that, individually or in the aggregate for all such events or occurrences, has
had, or that such Authorized Officer in its reasonable good faith judgment
determines could reasonably be expected to have, a Material Adverse Effect (as
defined in the Indenture);

         (c) Proceedings. Promptly and in any event within five Business Days
after an Authorized Officer of the Originator has knowledge thereof, written
notice of (i) any litigation, investigation or proceeding of the type described
in Section 6.1(f) not previously disclosed to the Buyer, (ii) any material
adverse development that has occurred with respect to any such previously
disclosed litigation, investigation or proceeding or (iii) any CMF Purchase
Termination Event or event which, with the giving of notice or passage of time
or both, would constitute a CMF Purchase Termination Event;

         (d) ERISA Event. (i) As soon as possible and in any event within 30
days after the Originator or any ERISA Affiliate knows or has reason to know
that a "reportable event" (as defined in Section 4043 of ERISA) has occurred
with respect to any Plan, a statement of an Authorized Officer of the Originator
setting forth details as to such reportable event and the action that the
Originator or an ERISA Affiliate proposes to take with respect thereto, together
with a copy of the notice of such reportable event, if any, given to the PBGC,
the Internal Revenue Service or the Department of Labor; (ii) promptly and in
any event within 10 Business Days after receipt thereof, a copy of any notice
the Originator or any ERISA Affiliate receives from the PBGC relating to the
intention of the PBGC to terminate any Plan or to appoint a trustee to
administer any such Plan; (iii) promptly and in any event within 10 Business
Days after a filing with the PBGC pursuant to Section 412(n) of the Code of a
notice of failure to make a required installment or other payment with respect
to a Plan, a statement of the chief financial officer of the Originator setting
forth details as to such failure and the action that the Originator or an ERISA
Affiliate proposes to take with respect thereto, together with a copy of such
notice given to the PBGC; and (iv) promptly and in any event within 30 Business
Days after receipt thereof by the Originator or any ERISA Affiliate from the
sponsor of a multiemployer plan (as defined in Section 3(37) of ERISA), a copy
of each notice received by the Originator or any ERISA Affiliate concerning the
imposition of withdrawal liability or a determination that a multiemployer plan
is, or is expected to be, terminated or reorganized;

                                       18
<PAGE>

         (e) Environmental Claims. Promptly and in any event within five
Business Days after receipt thereof, notice and copies of all written claims,
complaints, notices, actions, proceedings, requests for information or inquiries
relating to the condition of any CMSC Homes or compliance with Environmental
Laws relating to the CMSC Homes, other than those received in the ordinary
course of business and that, singly or in the aggregate, do not represent events
or conditions that would cause the representation set forth in Section 6.1(v) to
be incorrect; and

         (f) Other. Promptly, from time to time, such other information,
documents, records or reports with respect to the CMSC Purchased Assets or the
condition or operations, financial or otherwise, of the Originator as the Buyer
or its assignees may from time to time reasonably request in order to protect
the interests of the Buyer or such assignees under or as contemplated by this
Agreement and the other Transaction Documents, including timely delivery of all
such information required under any Enhancement Agreement.

         Section 7.3 Negative Covenants of the Originator. From the Closing Date
until the termination of this Agreement in accordance with Section 11.4, the
Originator agrees that it will not:

         (a) Sales, Liens, Etc. Sell, assign (by operation of law or otherwise)
    or otherwise dispose of, or create or suffer to exist any Lien (other than
    Permitted Liens) of anyone claiming by or through it on or with respect to,
    any ARSC Purchased Asset or Excluded Asset or any interest therein or any
    Lockbox or Lockbox Account, other than (i) sales of CMSC Purchased Assets
    pursuant to this Agreement, (ii) sales of CMSC Homes in accordance with the
    applicable Contracts and (iii) transfers of Excluded Assets where the
    transferee has executed and delivered to the Indenture Trustee an
    Acknowledgement Letter;

         (b) Change in Business or Credit and Collection Policy. (i) Make any
    material change in the Credit and Collection Policy or (ii) make any
    material change in the character of its employee relocation business or
    engage in any business unrelated to such business as currently conducted
    that, in either case, individually or in the aggregate with all other such
    changes, would be reasonably likely to have a material adverse effect on the
    composition or performance of the CMSC Purchased Assets;

         (c) No Mergers, Etc. Consolidate with or merge with or into any other
    Person or convey, transfer or sell all or substantially all of its
    properties and assets to any Person, unless:

         (i) (A) the Originator is the surviving entity thereof or, if the
         Originator is not the surviving entity thereof, (x) the Person formed
         by such consolidation or into which the Originator is merged or the
         Person that acquires by conveyance, transfer or sale all or
         substantially all of the properties and assets of the Originator (any
         such Person, the "SURVIVING ENTITY") is an entity organized and
         existing under the laws of the United States of America or any State
         thereof, (y) such Surviving Entity expressly assumes, by an agreement
         supplemental hereto in form and substance satisfactory to the Buyer and
         its assignees, performance of every covenant and obligation of the
         Originator hereunder and under the other Transaction

                                       19
<PAGE>

         Documents to which the Originator is a party and (z) such Surviving
         Entity delivers to the Buyer and its assignees an opinion of counsel
         that such Surviving Entity is duly organized and validly existing under
         the laws of its organization, has duly executed and delivered such
         supplemental agreement, and such supplemental agreement is a valid and
         binding obligation of such Surviving Entity, enforceable against such
         Surviving Entity in accordance with its terms (subject to customary
         exceptions relating to bankruptcy and equitable principles) and
         covering such other matters as the Buyer or its assignees may
         reasonably request;

         (ii) all actions necessary to maintain the perfection of the security
         interests or ownership interests of the Buyer in the CMSC Purchased
         Assets in connection with such consolidation, merger, conveyance or
         transfer have been taken, as evidenced by an opinion of counsel
         reasonably satisfactory to the Buyer and its assignees;

         (iii) so long as the Originator is the Servicer, no Servicer Default or
         Unmatured Servicer Default is then occurring or would result from such
         merger, consolidation, conveyance or transfer; and

         (iv) any necessary consents of each applicable Series Enhancer have
         been obtained.

         (d) Change in Name. Change its corporate name or the name under or by
    which it conducts its core relocation business or the jurisdiction in which
    it is incorporated unless the Originator has given the Buyer and its
    assignees and each rating agency then rating any Series of Notes at least 30
    days' prior written notice thereof and unless, prior to any such change in
    name or jurisdiction of incorporation, the Originator has taken and
    completed all action required by Section 8.3;

         (e) Home Deeds. Record any Home Deeds with respect to any Homes except
    at the direction of the Buyer or its assignees or as permitted by Section
    8.3 hereof or by Section 2.01(d)(i) of the Transfer and Servicing Agreement;
    and

         (f) Termination of Relocation Management Agreements. Terminate any Pool
    Relocation Management Agreement, CMSC Home Purchase Contract, CMSC Home Sale
    Contract, CMSC Equity Loan Note or CMSC Equity Loan Agreement except in
    accordance with the Credit and Collection Policy.

         (g) Extension or Amendment. Extend, amend or otherwise modify the terms
    of any Receivable included in the ARSC Purchased Assets, or amend, modify or
    waive any material term or condition related thereto, except in accordance
    with Section 3.10 of the Transfer and Servicing Agreement.

         (h) Change in Payment Instruction to Obligors. Make any change in its
    instructions to Obligors or other Persons regarding payments to be made to
    the Originator

                                       20
<PAGE>

    or payments to be made to any Lockbox Account (except for a change in
    instructions solely for the purpose of directing such Obligors or other
    Persons to make such payments to another existing Lockbox Account), unless
    (i) the Indenture Trustee has received copies of a Lockbox Agreement with
    each new Lockbox Bank duly executed by the Originator, the Buyer, the
    Issuer, the Indenture Trustee and such Lockbox Bank and (ii) in the case of
    any termination, the Buyer or its successors and assigns have received
    evidence to their satisfaction that the Obligors that were making payments
    into a terminated Lockbox Account have been instructed in writing to make
    payments into another Lockbox Account then in use.

         (i) Home Purchase Contracts. Purchase any Home or make any Equity
    Payments, Mortgage Payoffs, or Mortgage Payments on or after the Closing
    Date other than Equity Payments, Mortgage Payoffs and Mortgage Payments with
    respect to CMSC Homes.

         (j) Indebtedness for Borrowed Money. Create, incur, guarantee or permit
    to exist any Indebtedness for Borrowed Money, except for (A) any such
    Indebtedness owed on an intercompany basis to the Performance Guarantor or
    any Affiliate thereof and (B) any such Indebtedness to a Person that has
    executed and delivered an Acknowledgment Letter in favor of the Originator
    and the Buyer and its successors and assigns, including any Series Enhancer.

         Section 7.4 Affirmative Covenants of the Buyer. From the Closing Date
until the termination of this Agreement in accordance with Section 11.4, the
Buyer hereby agrees that it will perform the covenants and agreements set forth
in this Section 7.4.

         (a) The Buyer hereby acknowledges that the parties to the Transaction
Documents are entering into the transactions contemplated by the Transaction
Documents in reliance upon the Buyer's identity as a legal entity separate from
the Originator and the other CMS Persons. From and after the date hereof until
one year and one day after the Final Payout Date, the Buyer will take such
actions as shall be required in order that:

         (i) The Buyer will conduct its business in office space allocated to it
    and for which it pays an appropriate rent and overhead allocation;

         (ii) The Buyer will maintain corporate records and books of account
    separate from those of each CMS Person and telephone numbers and stationery
    that are separate and distinct from those of each CMS Person;

         (iii) The Buyer's assets will be maintained in a manner that
    facilitates their identification and segregation from those of any CMS
    Person;

         (iv) The Buyer will strictly observe corporate formalities in its
    dealings with the public and with each CMS Person, and funds or other assets
    of the Buyer will not be commingled with those of any CMS Person, except as
    expressly permitted by the Transaction Documents. The Buyer will at all
    times, in its dealings with the public and

                                       21
<PAGE>

    with each CMS Person, hold itself out and conduct itself as a legal entity
    separate and distinct from each CMS Person. The Buyer will not maintain
    joint bank accounts or other depository accounts to which any CMS Person
    (other than the Originator in its capacity as Servicer under the Transfer
    and Servicing Agreement) has independent access;

         (v) The duly elected board of directors of the Buyer and duly appointed
    officers of the Buyer will at all times have sole authority to control
    decisions and actions with respect to the daily business affairs of the
    Buyer;

         (vi) Not less than one member of the Buyer's board of directors will be
    an Independent Director. The Buyer will observe those provisions in its
    certificate of incorporation that provide that the Buyer's board of
    directors will not approve, or take any other action to cause the filing of,
    a voluntary bankruptcy petition with respect to the Buyer unless the
    Independent Director and all other members of the Buyer's board of directors
    unanimously approve the taking of such action in writing prior to the taking
    of such action;

         (vii) The Buyer will compensate each of its employees, consultants and
    agents from the Buyer's own funds for services provided to the Buyer;

         (viii) The Buyer will not hold itself out to be responsible for the
    debts of any CMS Person; and

         (ix) The Buyer will take all actions necessary on its part to be taken
    in order to ensure that the facts and assumptions relating to the Buyer set
    forth in the opinions of Orrick, Herrington & Sutcliffe LLP of even date
    herewith relating to true sale matters with respect to the Purchase of the
    CMSC Purchased Assets hereunder and substantive consolidation matters with
    respect to the Originator and the Buyer will be true and correct at all
    times.

         (b) The Buyer assumes no obligations of the Originator under the Pool
Relocation Management Agreements with respect to any CMSC Home Purchase
Contracts, including without limitation the obligations of the Originator to
make Equity Payments, Mortgage Payoffs and Mortgage Payments with respect to
CMSC Homes. The Buyer will enter into all Home Purchase Contracts under the Pool
Relocation Management Agreements in its own name and will make all Equity
Payments, Mortgage Payoffs and Mortgage Payments from and after the Closing Date
other than Equity Payments, Mortgage Payoffs and Mortgage Payments with respect
to CMSC Homes.

                                       22
<PAGE>

                                  ARTICLE VIII

                      ADDITIONAL RIGHTS AND OBLIGATIONS IN
                      RESPECT OF THE CMSC PURCHASED ASSETS

         Section 8.1 Rights of the Buyer.

         (a) Subject to Section 8.4(b), the Originator hereby authorizes the
Buyer and its assignees and designees to take any and all steps in the
Originator's name and on behalf of the Originator that the Buyer, the Servicer
and/or their respective designees determine are reasonably necessary or
appropriate to collect all amounts due under any and all CMSC Purchased Assets,
including without limitation endorsing the name of the Originator on checks and
other instruments representing CMSC Collections and enforcing such CMSC
Purchased Assets.

         (b) The Buyer shall have no obligation to account for, to replace, to
substitute or to return any CMSC Purchased Asset to the Originator, except as
provided in Section 4.3(c).

         (c) The Buyer shall have the unrestricted right to further assign,
transfer, deliver, hypothecate, subdivide or otherwise deal with the CMSC
Purchased Assets and all of the Buyer's right, title and interest in, to and
under this Agreement on whatever terms the Buyer determines, pursuant to the
Receivables Purchase Agreement or otherwise.

         (d) As between the Originator and the Buyer, the Buyer shall have the
sole right to retain any gains or profits created by buying, selling or holding
the CMSC Purchased Assets.

         Section 8.2 Responsibilities of the Originator. Anything herein to the
contrary notwithstanding:

         (a) The Originator agrees to deliver directly to the Servicer (for the
Buyer's account), within one Business Day after receipt thereof, any CMSC
Collections or CMF Collections that it receives, in the form so received, and
agrees that all such CMSC Collections and CMF Collections will be deemed to be
received in trust for the Buyer and its assignees and will be maintained and
segregated separate and apart from all other funds and moneys of the Originator
until delivery of such CMSC Collections and CMF Collections to the Servicer; and

         (b) The Originator hereby grants to the Buyer an irrevocable power of
attorney, with full power of substitution, coupled with an interest, to take in
the name of the Originator all steps necessary or advisable to endorse,
negotiate or otherwise realize on any writing or other right of any kind held or
transmitted by the Originator or transmitted or received by the Buyer (whether
or not from the Originator) in connection with any CMSC Purchased Asset (which
power of attorney may be exercised by the Buyer's successors and assigns in
accordance with Section 8.4 and Section 11.12(b)).

                                       23
<PAGE>

         (c) The Originator shall perform all of its obligations hereunder and
under the Pool Relocation Management Agreements and other Contracts related to
the CMSC Purchased Assets to which it is a party (other than those obligations
undertaken by the Buyer as provided in Section 7.4(b)) to the same extent as if
such CMSC Purchased Assets had not been sold hereunder, and the exercise by the
Buyer or its designee or assignee of the Buyer's rights hereunder or in
connection herewith shall not relieve the Originator from any of its obligations
under any such Pool Relocation Management Agreements or Contracts related to the
CMSC Purchased Assets to which it is a party. Notwithstanding the foregoing, the
Originator acknowledges that the Buyer or its designees are entitled to perform
such obligations to the extent permitted under the Transaction Documents.

         Section 8.3 Further Action Evidencing Purchases. The Originator agrees
that from time to time, at its expense and upon reasonable request, it will
promptly execute and deliver all further instruments and documents and take all
further action as is reasonably necessary to perfect, protect or more fully
evidence the Purchase of the CMSC Purchased Assets by the Buyer hereunder, or to
enable the Buyer or its assignees to exercise or enforce any of its rights
hereunder or under any other Transaction Document to which the Originator is a
party; provided, however, that the Originator will not file or record any Home
Deeds except (i) in its capacity as the Servicer pursuant to the Transfer and
Servicing Agreement and in accordance with the terms thereof and (ii) at any
time, to the extent such recordation is required by local law, regulation or
custom. No Home Deeds or Home Purchase Contracts may be recorded in the name of
the Originator other than Home Deeds relating to CMSC Homes and CMSC Home
Purchase Contracts. Without limiting the generality of the foregoing, the
Originator shall:

         (a) upon the Buyer's request, execute and file such financing or
    continuation statements or amendments thereto or assignments thereof and
    such other instruments or notices as the Buyer or its assignees may
    reasonably determine to be necessary or appropriate; and

         (b) mark the master data processing records evidencing the CMSC
    Purchased Assets and, if requested by the Buyer or its assignees, legend the
    related Pool Relocation Management Agreements and CMSC Home Purchase
    Contracts to reflect the sale of the CMSC Purchased Assets to the Buyer
    pursuant to this Agreement.

         The Originator hereby authorizes the Buyer and its assignees to file
one or more financing or continuation statements and amendments thereto and
assignments thereof with respect to all or any of the CMSC Purchased Assets, in
each case whether now existing or hereafter generated by the Originator. If (i)
the Originator fails to perform any of its agreements or obligations under this
Agreement and does not remedy such failure within the applicable cure period, if
any, and (ii) the Buyer or its assignees in good faith reasonably believes that
the performance of such agreements and obligations is necessary or appropriate
to protect the interests of the Buyer or its assignees under this Agreement,
then the Buyer or its assignees may (but shall not be required to) perform or
cause performance of such agreement or obligation, and the reasonable expenses
of the Buyer or its assignees incurred in connection with such performance shall
be payable by the Originator as provided in Section 10.1.

                                       24
<PAGE>

         Section 8.4 CMSC Collections; Rights of the Buyer and its Assignees.

         At any time following the designation of a Servicer other than the
Originator pursuant to the Transfer and Servicing Agreement:

              (a) The Buyer or its assignees may direct the Obligors of CMSC
    Receivables, or any of them, to pay all amounts payable under any CMSC
    Receivable directly to the Buyer or its assignees;

              (b) At the request of the Buyer or its assignees and at the
    Originator's expense, the Originator shall give notice of such ownership to
    each said Obligor and direct that payments be made directly to the Buyer or
    its assignees;

              (c) At the request of the Buyer or its assignees and at the
    Originator's expense, the Originator shall (A) assemble all of the CMSC
    Records, to the extent such CMSC Records are in its possession, and make the
    same available at a place selected by the Buyer or its successors and
    assigns, or instruct any escrow agents holding any such documents,
    instruments and other records on its behalf to make the same available and
    (B) segregate all cash, checks and other instruments received by it from
    time to time constituting CMSC Collections or CMF Collections in a manner
    reasonably acceptable to the Buyer or its assignees and, promptly upon
    receipt, remit all such cash, checks and instruments, duly endorsed or with
    duly executed instruments of transfer, to the Buyer or its assignees; and

              (d) The Originator hereby authorizes the Buyer or its assignees to
    take any and all steps in the Originator's name and on behalf of the
    Originator that are necessary or desirable, in the reasonable determination
    of the Buyer or its assignees, to collect all amounts due under any and all
    CMSC Purchased Assets, including without limitation endorsing the
    Originator's name on checks and other instruments representing CMSC
    Collections and enforcing the CMSC Purchased Assets.

                                   ARTICLE IX

                                   TERMINATION

         Section 9.1 CMF Purchase Termination Events. The following events shall
be "CMF PURCHASE TERMINATION EVENTS":

         (a) The occurrence of an Event of Default or an Amortization Event with
respect to all outstanding Series of Notes; or

         (b) Any representation or warranty made by the Originator under any of
the Transaction Documents, any Receivables Activity Report or other information
or report delivered by the Originator (including in its capacity as Servicer)
with respect to the Originator or the CMSC Purchased Assets shall prove to have
been untrue or incorrect in any material

                                       25
<PAGE>

respect when made or deemed to have been made, and such failure could be
reasonably expected to have a Material Adverse Effect and such occurrence
remains unremedied for 30 days; provided, however, that any such incorrect
representation relating to a CMSC Receivable with respect to which the
Originator has made a CMSC Noncomplying Asset Adjustment pursuant to Section
4.3(a) shall not constitute a CMF Purchase Termination Event; or

         (c) (i) The Originator shall fail to perform or observe, as and when
required, any term, covenant or agreement contained in this Agreement or any of
the other Transaction Documents to which it is a party or any Contract required
on its part to be performed or observed, and such failure shall remain
unremedied for: (A) in the case of a failure to deliver any Daily Originator
Report pursuant to Section 3.1(a), ten calendar days (provided, however, that
such ten-day period may be extended for an additional three days if such failure
to deliver a Daily Originator Report is due to computer failure); (B) in the
case of a failure to provide payment instructions to Obligors pursuant to
Section 7.1(f), a failure to segregate CMSC Collections or CMF Collections
pursuant to Section 7.1(g), a failure to provide records pursuant to Section
7.1(k), a failure to provide required notices pursuant to Section 7.2(c), a
failure to provide any required monthly report or a breach of any of the
negative covenants of the Originator set forth in Section 7.3, ten calendar
days; or (C) in the case of any other failure to perform or observe, as and when
required, any term, covenant or agreement, which failure could be reasonably
expected to have a Material Adverse Effect, 30 days or (ii) the Performance
Guarantor shall fail to make any required payment under the PHH Guarantee and
such failure shall remain unremedied for one Business Day or (iii) the
Performance Guarantor shall otherwise fail to perform under the PHH Guarantee;
or

         (d) An Event of Bankruptcy shall have occurred with respect to the
Originator or the Performance Guarantor; or

         (e) The representation and warranty in Section 6.1(k) shall not be true
at any time with respect to a substantial portion of the CMSC Purchased Assets;
or

         (f) Either (i) the Internal Revenue Service shall file notice of a Lien
pursuant to Section 6323 of the Internal Revenue Code with respect to any of the
CMSC Receivables or the CMSC Related Assets and such Lien shall not have been
released within five days or, if released, proved to the satisfaction of the
rating agencies then rating each Series of Notes or (ii) the PBGC shall file, or
shall indicate its intention to file, notice of a Lien pursuant to Section 4068
of the Employee Retirement Income Security Act of 1974 with respect to any of
the CMSC Receivables or the CMSC Related Assets; or

         (g) This Agreement or the PHH Guarantee shall cease to be in full force
and effect for any reason other than in accordance with its terms; or

         (h) An ARSC Purchase Termination Event or Transfer Termination Event
shall have occurred.

If a CMF Purchase Termination Event occurs, the Originator shall promptly give
notice to the Buyer and its assignees of such CMF Purchase Termination Event.

                                       26
<PAGE>

         Section 9.2 Purchase Termination. (a) On the Termination Date, the
Originator shall cease transferring CMSC Purchased Assets to the Buyer, provided
that any right, title and interest of the Originator in and to any CMF
Designated Receivables arising from any Servicer Advances made thereafter,
including any Related Property relating thereto and proceeds thereof, shall
continue to be transferred. Notwithstanding any cessation of the transfer to the
Buyer of additional CMSC Purchased Assets, CMSC Purchased Assets transferred to
the Buyer prior to the Termination Date and CMSC Collections in respect of such
CMSC Purchased Assets and the related Finance Charges, whenever accrued in
respect of such CMSC Receivables, shall continue to be property of the Buyer
available for transfer by the Buyer pursuant to the Receivables Purchase
Agreement. Nothing in this Section 9.2 shall be deemed to prohibit the Buyer
from funding CMF Designated Receivables from and after the Termination Date.

         (b) Upon the occurrence of a CMF Purchase Termination Event, the Buyer
and its assignees shall have, in addition to all other rights and remedies under
this Agreement or otherwise, all other rights and remedies provided under the
UCC of each applicable jurisdiction and other applicable laws, which rights
shall be cumulative. Without limiting the foregoing, the occurrence of a CMF
Purchase Termination Event shall not deny to the Buyer or its assignees any
remedy in addition to termination of its obligation to make Purchases hereunder
to which the Buyer or its assignees may be otherwise appropriately entitled,
whether by statute or applicable law, at law or in equity.

                                    ARTICLE X

                       INDEMNIFICATION; SECURITY INTEREST

         Section 10.1 Indemnities by the Originator. Without limiting any other
rights that any CMSC Indemnified Party may have hereunder or under applicable
law, the Originator agrees to indemnify the Buyer and each of its successors,
permitted transferees and assigns, and all officers, directors, shareholders,
controlling Persons, employees and agents of any of the foregoing (each of the
foregoing Persons, a "CMSC INDEMNIFIED PARTY"), from and against any and all
damages, losses, claims (whether on account of settlements or otherwise),
actions, suits, demands, judgments, liabilities (including penalties),
obligations or disbursements of any kind or nature and related costs and
expenses (including reasonable attorneys' fees and disbursements) awarded
against or incurred by any of them, arising out of or as a result of any of the
following (all of the foregoing, collectively, "CMSC INDEMNIFIED LOSSES"):

         (a) any representation or warranty made by the Originator under any of
    the Transaction Documents to which it is a party, any Receivables Activity
    Report or any other information or report delivered by the Originator
    (including in its capacity as Servicer) with respect to the Originator or
    the CMSC Purchased Assets, having been untrue or incorrect in any respect
    when made or deemed to have been made; provided, however, that the
    Originator's obligation to make a CMSC Noncomplying Asset Adjustment
    pursuant to Section 4.3(a) with respect to any representation made in
    Section

                                       27
<PAGE>

    6.1(1) as to Eligible Receivables having been incorrect when made shall be
    the only remedy available to the Buyer or its assignees relating to such
    incorrect representation;

         (b) the failure by the Originator to comply with any material
    applicable law, rule or regulation applicable to the Originator with respect
    to any CMSC Purchased Asset or any failure of a CMSC Purchased Asset to
    comply with any such law, rule or regulation as of the date of sale of such
    CMSC Purchased Asset hereunder;

         (c) the failure to vest and maintain in the Buyer a valid ownership
    interest in the CMSC Purchased Assets, free and clear of any Lien arising
    through the Originator or anyone claiming through or under the Originator
    (including without limitation any such failure arising from a circumstance
    described in the definition of Permitted Exceptions);

         (d) any failure of the Originator to perform its duties or obligations
    in accordance with the provisions of the Transaction Documents or any
    Contract, in each case to which it is a party;

         (e) the failure to file, or any delay in filing, financing statements
    or other similar instruments or documents under the UCC of any applicable
    jurisdiction or other applicable laws with respect to the transfer of any
    CMSC Purchased Assets to the Buyer, whether at the time of any sale or at
    any subsequent time;

         (f) the failure by the Originator to pay when due any taxes owing by it
    (including sales, excise or property taxes) payable in connection with the
    CMSC Purchased Assets, other than any such taxes, assessments or charges
    that are being diligently contested in good faith by appropriate
    proceedings, for which adequate reserves in accordance with GAAP have been
    set aside on its books and that have not given rise to any Liens (other than
    Permitted Liens);

         (g) any reduction in the Unpaid Balance of any Receivable included in
    the ARSC Purchased Assets as a result of (i) any cash discount or any
    adjustment by the Originator, (ii) any offsetting account payable of the
    Originator to an Obligor, (iii) a set-off in respect of any claim by, or
    defense or credit of, the related Obligor against the Originator (whether
    such claim, defense or credit arises out of the same or a related or an
    unrelated transaction) or (iv) the obligation of the Originator to pay to
    the related Obligor any rebate or refund;

         (h) any product liability or personal injury claim in connection with
    the service that is the subject of any CMSC Purchased Asset; and

         (i) any investigation, litigation or proceeding related to any use by
    CMSC of the proceeds of any Purchase made hereunder.

         Notwithstanding anything to the contrary in this Agreement, any
representations, warranties and covenants made by the Originator in this
Agreement or the other Transaction Documents that are qualified by or limited to
events or circumstances that have, or are

                                       28
<PAGE>

reasonably likely to have, given rise to a Material Adverse Effect shall (solely
for purposes of the indemnification obligations set forth in this Section 10.1)
be deemed not to be so qualified or limited.

         Notwithstanding the foregoing (and with respect to clause (ii) below,
without prejudice to the rights that the Buyer may have pursuant to the other
provisions of this Agreement or the provisions of any of the other Transaction
Documents), in no event shall any CMSC Indemnified Party be indemnified for any
CMSC Indemnified Losses (i) resulting from negligence or willful misconduct on
the part of such CMSC Indemnified Party, (ii) to the extent the same includes
losses in respect of CMSC Purchased Assets and reimbursement therefor that would
constitute credit recourse to the Originator for the amount of any CMSC
Receivable not paid by the related Obligor or (iii) resulting from the action or
omission of the Servicer (unless the Servicer is the Originator or an Affiliate
thereof (other than the Buyer, ARSC or the Issuer)).

         If for any reason the indemnification provided in this Section 10.1 is
unavailable to an CMSC Indemnified Party or is insufficient to hold an CMSC
Indemnified Party harmless, then the Originator shall contribute to the maximum
amount payable or paid to such CMSC Indemnified Party as a result of such loss,
claim, damage or liability in such proportion as is appropriate to reflect not
only the relative benefits received by such CMSC Indemnified Party on the one
hand and the Originator on the other hand, but also the relative fault of such
CMSC Indemnified Party and the Originator, and any other relevant equitable
considerations.

         Section 10.2 Security Interest. Without prejudice to the provisions of
Section 2.1 providing for the absolute transfer of the Originator's interest in
the CMSC Purchased Assets and the proceeds thereof and any interest of the
Originator in the other property described in clause (v) of Section 2.1(a) to
the Buyer, in order to secure the prompt payment and performance of all
obligations of the Originator to the Buyer arising in connection with this
Agreement, whether now or hereafter existing, due or to become due, direct or
indirect, or absolute or contingent, the Originator hereby assigns and grants to
the Buyer a first priority security interest in the Originator's right, title
and interest, if any, in, to and under all of the CMSC Purchased Assets and the
proceeds thereof and any interest of the Originator in the other property
described in clause (v) of Section 2.1(a), whether now or hereafter existing.

                                   ARTICLE XI

                                  MISCELLANEOUS

         Section 11.1 Amendments; Waivers, Etc.

         (a) The provisions of this Agreement may be amended, modified or waived
from time to time if such amendment, modification or waiver is in writing and
signed by the Originator and the Buyer and its assignees. Any waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

         (b) No failure or delay on the part of the Buyer or its assignees, or
any CMSC Indemnified Party, or any other third party beneficiary referred to in
Section 11.12(a) in

                                       29
<PAGE>

exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power or right preclude any
other or further exercise thereof or the exercise of any other power or right.
No notice to, or demand on, the Originator shall entitle it in any case to any
notice or demand in similar or other circumstances. No waiver or approval by the
Buyer or its assignees under this Agreement shall, except as may otherwise be
stated in such waiver or approval, be applicable to subsequent transactions. No
waiver or approval under this Agreement shall require any similar or dissimilar
waiver or approval thereafter to be granted hereunder.

         Section 11.2 Notices, Etc. Unless otherwise stated herein, all notices,
demands, consents, approvals and other communications provided for hereunder
shall be in writing (including via telecopier) and shall be personally delivered
or sent by certified mail, return receipt requested, postage prepaid, by
telecopier or by overnight courier to the intended party at the address or
telecopier number of such party set forth on Schedule 11.2 hereof, or at such
other address or telecopier number as shall be designated by such party in a
written notice to the other party hereto given in accordance with this Section
11.2. Copies of all notices and other communications provided for hereunder
shall be delivered to ARSC and the Issuer at their respective addresses for
notices set forth in the Receivables Purchase Agreement. All notices and
communications provided for hereunder shall be effective when received.

         Section 11.3 Cumulative Remedies. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

         Section 11.4 Binding Effect; Assignability; Survival of Provisions.
This Agreement shall be binding upon, and inure to the benefit of, the Buyer and
the Originator and their respective successors and assigns. Except as permitted
pursuant to Section 7.3(c), the Originator may not assign any of its rights
hereunder or any interest herein without the prior written consent of the Buyer
and its assignees. This Agreement shall create and constitute the continuing
obligations of the parties hereto in accordance with its terms and shall remain
in full force and effect until terminated pursuant hereto. Such termination
shall not occur prior to the Final Payout Date. The rights and remedies with
respect to any breach of any representation and warranty made by the Originator
pursuant to Article VI and the indemnification and payment provisions of Article
X and Section 11.6 and the provisions of Section 11.14 and Section 11.16 shall
be continuing and shall survive any termination of this Agreement.

         Section 11.5 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK,
INCLUDING ss.5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT OTHERWISE
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

         Section 11.6 Costs, Expenses and Taxes. In addition to the obligations
of the Originator under Article X, the Originator agrees to pay on demand:

         (a) all reasonable costs and expenses incurred by the Buyer and its
    assignees in connection with the negotiation, preparation, execution and
    delivery of, the administration (including periodic auditing), the
    preservation of any rights under, or the

                                       30
<PAGE>

    enforcement of, or any breach of, this Agreement (including any amendment,
    supplement or modification hereto), including without limitation (i) the
    reasonable fees, expenses and disbursements of counsel to any such Persons
    incurred in connection with any of the foregoing or in advising such Persons
    as to their respective rights and remedies under this Agreement and (ii) all
    reasonable out-of-pocket expenses (including reasonable fees and expenses of
    independent accountants) incurred in connection with any review of the
    Originator's books and records either prior to the execution and delivery
    hereof or pursuant to Section 7.1(k), and

         (b) all stamp and other taxes and fees payable or determined to be
    payable in connection with the execution, delivery, filing and recording of
    this Agreement or any amendment, supplement or modification thereto, and
    agrees to indemnify each CMSC Indemnified Party against any liabilities with
    respect to, or resulting from, any delay in paying or omission to pay such
    taxes and fees.

         Section 11.7 Submission to Jurisdiction. EACH PARTY HERETO HEREBY
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR
FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, NEW
YORK, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, AND HEREBY (a) IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR
FEDERAL COURT; (b) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY
DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING; AND (c) IRREVOCABLY APPOINTS CT CORPORATION SYSTEM (THE "PROCESS
AGENT"), WITH AN OFFICE ON THE DATE HEREOF AT 111 EIGHTH AVENUE, NEW YORK, NEW
YORK 10011, UNITED STATES OF AMERICA, AS ITS AGENT TO RECEIVE ON BEHALF OF IT
AND ITS PROPERTY SERVICE OF COPIES OF THE SUMMONS AND COMPLAINT AND ANY OTHER
PROCESS THAT MAY BE SERVED IN ANY SUCH ACTION OR PROCEEDING. SUCH SERVICE MAY BE
MADE BY MAILING OR DELIVERING A COPY OF SUCH PROCESS IN CARE OF THE PROCESS
AGENT AT THE PROCESS AGENT'S ABOVE ADDRESS, AND EACH PARTY HERETO HEREBY
IRREVOCABLY AUTHORIZES AND DIRECTS THE PROCESS AGENT TO ACCEPT SUCH SERVICE ON
ITS BEHALF. EACH PARTY HERETO AGREES TO ENTER INTO ANY AGREEMENT RELATING TO
SUCH APPOINTMENT THAT THE PROCESS AGENT MAY CUSTOMARILY REQUIRE AND TO PAY THE
PROCESS AGENT'S CUSTOMARY FEES UPON DEMAND. AS AN ALTERNATIVE METHOD OF SERVICE,
EACH PARTY HERETO ALSO IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL
PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES OF SUCH
PROCESS TO SUCH PARTY AT ITS ADDRESS SPECIFIED PURSUANT TO SECTION 11.2. NOTHING
IN THIS SECTION 11.7 SHALL AFFECT THE RIGHT OF EITHER PARTY HERETO TO SERVE
LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF EITHER
PARTY HERETO TO BRING ANY ACTION OR PROCEEDING AGAINST THE OTHER PARTY HERETO OR
ANY OF ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION.

                                       31
<PAGE>

         Section 11.8 Waiver of Jury Trial. EACH PARTY HERETO WAIVES ANY RIGHT
TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS
UNDER OR RELATING TO THIS AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR
AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION
HEREWITH OR THEREWITH OR ARISING FROM ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN), ACTIONS OF EITHER OF THE PARTIES HERETO
OR ANY OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES
THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE
A JURY.

         Section 11.9 Integration. This Agreement contains a final and complete
integration of all prior expressions by the parties hereto with respect to the
subject matter hereof and shall constitute the entire agreement between the
parties hereto with respect to the subject matter hereof, superseding all prior
oral or written understandings.

         Section 11.10 Captions and Cross References. The various captions
(including without limitation the table of contents) in this Agreement are
provided solely for convenience of reference and shall not affect the meaning or
interpretation of any provision of this Agreement.

         Section 11.11 Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
agreement.

         Section 11.12 Acknowledgment and Consent.

         (a) The Originator acknowledges that, from time to time prior to the
Termination Date, the Buyer intends to sell all of the Buyer's right, title and
interest in, to and under the CMSC Purchased Assets, this Agreement and all of
the other Transaction Documents pursuant to the Receivables Purchase Agreement,
and that the interests of the Buyer hereunder will be further assigned pursuant
to the Transfer and Servicing Agreement and the Indenture. The Originator
acknowledges and agrees to each such sale by the Buyer and consents to the sale
and assignment by the Buyer of all or any portion of its right, title and
interest in, to and under the CMSC Purchased Assets, this Agreement and the
other Transaction Documents and all of the Buyer's rights, remedies, powers and
privileges and all claims of the Buyer against the Originator under or with
respect to this Agreement and the other Transaction Documents (whether arising
pursuant to the terms of this Agreement or otherwise available at law or in
equity), including without limitation (whether or not an Unmatured Servicer
Default or a Servicer Default has occurred and is continuing) (i) the right of
the Buyer at any time to enforce this Agreement against the Originator and the
obligations of the Originator hereunder and (ii) the right at any time to give
or withhold any and all consents, requests, notices, directions, approvals,
demands, extensions or waivers under or with respect to this Agreement, any
other Transaction Document or the obligations in respect of the Originator
thereunder, all of which rights, remedies, powers, privileges and claims may be
exercised and/or enforced by the Buyer's

                                       32
<PAGE>

successors ands assigns to the same extent as the Buyer may do. Each of the
parties hereto acknowledges and agrees that the Buyer's successors and assigns
are third party beneficiaries of this Agreement, including without limitation
the rights of the Buyer arising hereunder, and may rely on the Originator's
representations and warranties made herein as if made directly to them. The
Originator hereby acknowledges and agrees that, except with respect to its
rights under Section 4.3, it has no claim to or interest in any of the Lockbox
Accounts.

         (b) The Originator hereby agrees to execute all agreements, instruments
and documents and to take all other actions that the Buyer or its assignees
determines are necessary or appropriate to evidence its consent described in
Section 11.12(a). The Originator hereby acknowledges and agrees that the Buyer
in all of its capacities may assign to the Buyer's successors and assigns such
powers of attorney and other rights and interests granted by the Originator to
the Buyer hereunder and agrees to cooperate fully with the Buyer's successors
and assigns in the exercise of such rights.

         (c) The Originator hereby acknowledges that the Buyer's successors and
assigns are entering into the Transaction Documents in reliance on the Buyer's
identity as a legal entity separate from the Originator.

         Section 11.13 No Partnership or Joint Venture. Nothing contained in
this Agreement shall be deemed or construed by the parties hereto or by any
third person to create the relationship of principal and agent or of partnership
or of joint venture.

         Section 11.14 No Proceedings. The Originator hereby agrees that it will
not institute against the Buyer or its successors or join any other Person in
instituting against the Buyer or its successors any Insolvency Proceeding so
long as there shall not have elapsed one year plus one day since the Final
Payout Date. The foregoing shall not limit the right of the Originator to file
any claim in or otherwise take any action with respect to any Insolvency
Proceeding that was instituted against the Buyer or its successors by any Person
other than the Originator or any other CMS Person.

         Section 11.15 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement are 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.

         Section 11.16 Recourse to the Buyer. Except to the extent expressly
provided otherwise in the Transaction Documents, the obligations of the Buyer
under the Transaction Documents to which it is a party are solely the
obligations of the Buyer, and no recourse shall be had for payment of any fee
payable by or other obligation of or claim against the Buyer that arises out of
any Transaction Document to which the Buyer is a party against any director,
officer or employee of the Buyer. The provisions of this Section 11.16 shall
survive the termination of this Agreement.

                                       33
<PAGE>

         Section 11.17 Confidentiality. The Buyer agrees to maintain the
confidentiality of any information regarding the Originator, Cendant Corporation
and PHH obtained in accordance with the terms of this Agreement that is not
publicly available; provided, however, that the Buyer may reveal such
information (a) as necessary or appropriate in connection with the
administration or enforcement of this Agreement or its funding of Purchases
under this Agreement or (b) as required by law, government regulation, court
proceeding or subpoena. Notwithstanding anything herein to the contrary, none of
the Originator, Cendant Corporation nor PHH shall have any obligation to
disclose to the Buyer or its assignees any personal and confidential information
relating to a Transferred Employee.

                                       34
<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.

                                       CENDANT MOBILITY SERVICES CORPORATION

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

                                       CENDANT MOBILITY FINANCIAL CORPORATION

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

                     [Signature Page to Purchase Agreement]

<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

    A.   Defined Terms. As used in this Agreement, the following terms have the
         following meanings (such meanings to be equally applicable to the
         singular and plural forms thereof):

         "Acknowledgment Letter" shall mean a letter substantially in the form
attached hereto as Exhibit 7.3(j).

         "Advance Billing Receivable" shall mean a Billed Receivable for Advance
Payments owed by an Obligor.

         "Advance Payment" shall mean an amount paid by an Obligor pursuant to a
Pool Relocation Management Agreement or otherwise for application to existing or
future Receivables (other than existing Billed Receivables), including without
limitation any payments of anticipated fees and expenses under a Pool Relocation
Management Agreement.

         "Affiliate" shall mean, when used with respect to a Person, any other
Person directly or indirectly controlling, controlled by, or under common
control with, such Person. As used in this definition of Affiliate, the term
"control" means the power, directly or indirectly, to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of such Person's voting securities, by contract or otherwise, and the
terms "affiliated," "controlling" and "controlled" have correlative meanings.

         "Aggregate Employer Balance" shall have the meaning set forth in the
Indenture.

         "Amortization Event" shall have the meaning provided in the Indenture.

         "ARSC" shall have the meaning set forth in the Preliminary Statement to
this Agreement.

         "ARSC Purchased Assets" shall have the meaning set forth in the
Receivables Purchase Agreement.

         "Authorized Officer" shall mean, with respect to any Transaction Party,
the President, the Chief Financial Officer, the Controller, the Treasurer, any
Assistant Treasurer, any Senior Vice President, any Vice President, the
Secretary or any Assistant Secretary of such Transaction Party.

         "Average Days Outstanding" shall have the meaning set forth in the
Indenture.

         "Bankruptcy Code" shall mean the United States Bankruptcy Code, as
amended from time to time (Title 11 of the United States Code).

         "Billed Receivable" shall mean any CMSC Receivable or CMF Receivable
that has been billed to an Obligor.

                                       A-1
<PAGE>

         "Business Day" shall mean a day (other than a Saturday or Sunday) on
which commercial banks in New York, New York and Chicago, Illinois are not
authorized or required to be closed.

         "Buyer" shall mean Cendant Mobility Financial Corporation, in its
capacity as the buyer under this Agreement.

         "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended.

         "Closing Date" shall mean April 25, 2000.

         "CMF Collections" shall have the meaning set forth in the Receivables
Purchase Agreement.

         "CMF Designated Receivable" shall mean any Receivable arising from an
amount advanced by CMF or the Servicer on behalf of CMF in respect of Equity
Payments, Mortgage Payoffs, Direct Expenses, Mortgage Payments or Other
Reimbursable Expenses, even though such amounts may be advanced after the
Termination Date.

         "CMF Home" shall have the meaning set forth in the Receivables Purchase
Agreement.

         "CMF Home Purchase Contract" shall have the meaning set forth in the
Receivables Purchase Agreement.

         "CMF Home Sale Contract" shall have the meaning set forth in the
Receivables Purchase Agreement.

         "CMF Purchase Price" shall have the meaning set forth in Section
3.1(b).

         "CMF Purchase Termination Event" shall have the meaning set forth in
Section 9.1.

         "CMF Receivable" shall have the meaning set forth in the Receivables
Purchase Agreement.

         "CMF Subordinated Loan" shall have the meaning set forth in Section
4.2.

         "CMF Subordinated Note" shall mean the CMF Subordinated Note dated the
Closing Date, made by the Buyer and payable to the order of the Originator
substantially in the form of Exhibit 4.2, as such note may be amended,
supplemented, otherwise modified or replaced from time to time.

         "CMF Subordinated Note Cap" shall have the meaning set forth in Section
4.2.

         "CMSC" shall mean Cendant Mobility Services Corporation, a Delaware
corporation.

                                      A-2
<PAGE>

         "CMSC Collections" shall mean all funds that are received on account of
or otherwise in connection with any CMSC Purchased Asset, including without
limitation all funds received (a) from or on behalf of any Obligor in payment of
or otherwise in respect of any CMSC Receivable included in the CMSC Purchased
Assets (including without limitation funds received in respect of Advance
Payments, but only including any such Advance Payments to the extent necessary
to reduce the Aggregate Employer Balance of Receivables with respect to the
related Employer to zero), (b) from or on behalf of any Ultimate Buyer or any
other Person in respect of CMSC Home Sale Proceeds, (c) from any other Person to
the extent such funds were applied, or should have been applied, pursuant to any
Contract to repay or discharge any CMSC Receivable or CMSC Related Asset
included in the CMSC Purchased Assets (including without limitation insurance
payments that any Transaction Party applies in the ordinary course of its
business to amounts owed in respect of such CMSC Purchased Assets and the amount
of any Equity Payments applied to repayment of Equity Loans), (d) from the
Originator in respect of Originator Adjustments under this Agreement or any
other obligation of the Originator hereunder, (e) if the Servicer is CMSC, from
the Servicer in respect of Servicer Dilution Adjustments with respect to CMSC
Purchased Assets under Section 3.10(a) of the Transfer and Servicing Agreement
and (f) from PHH in respect of any payments made by PHH as guarantor of the
obligations of CMSC under the PHH Guarantee; provided, however, that any
proceeds of Receivables that gave rise to CMSC Noncomplying Asset Adjustments
that have been paid as provided in Section 4.3 hereof and any Related Property
with respect to such Receivables shall not constitute CMSC Collections and shall
be promptly returned to the Originator as provided in Section 4.3 hereof.

         "CMSC Equity Loan" shall mean an Equity Loan made by the Originator.

         "CMSC Equity Loan Agreement" shall mean a loan agreement entered into
by the Originator and a Transferred Employee in connection with a CMSC Equity
Loan.

         "CMSC Equity Loan Note" shall mean a promissory note executed to
evidence a CMSC Equity Loan.

         "CMSC Home" shall mean any Home subject to a CMSC Home Purchase
Contract.

         "CMSC Home Purchase Contract" shall mean any Home Purchase Contract
that was executed, and pursuant to which CMSC purchased a Home, prior to the
Closing Date and that relates to a Receivable included in the CMSC Purchased
Assets.

         "CMSC Home Sale Contract" shall mean any Home Sale Contract with
respect to a CMSC Home.

         "CMSC Home Sale Proceeds" shall mean any Home Sale Proceeds arising
under a CMSC Home Sale Contract.

         "CMSC Indemnified Losses" shall have the meaning set forth in Section
10.1.

         "CMSC Indemnified Party" shall have the meaning set forth in Section
10.1.

                                      A-3
<PAGE>

         "CMSC Noncomplying Asset" shall have the meaning set forth in Section
4.3(a).

         "CMSC Noncomplying Asset Adjustment" shall have the meaning set forth
in Section 4.3(a).

         "CMSC Purchased Assets" shall have the meaning set forth in Section
2.1(a).

         "CMSC Receivable" shall have the meaning set froth in Section 2.1(a).

         "CMSC Records" shall mean all Records maintained by the Originator with
respect to the CMSC Purchased Assets and/or the related Obligors.

         "CMSC Related Assets" shall have the meaning set forth in Section
2.1(a).

         "CMSC Related Property" shall have the meaning set forth in Section
2.1(a).

         "CMS Person" shall mean the Originator and each of its Subsidiaries and
Affiliates other than CMF, ARSC or the Issuer.

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

         "Contract" shall mean a Pool Relocation Management Agreement and any
other related contract entered into pursuant thereto or in connection therewith,
pursuant to or under which any Person (other than a Transaction Party) is
obligated to make payments from time to time, including as the context may
require any Equity Loan Note, Equity Loan Agreement, Home Purchase Contract or
Home Sale Contract.

         "Credit and Collection Policy" shall mean those credit and collection
policies and practices of the Originator relating to the Contracts and
Receivables described in Exhibit 6.1(u), as such credit and collection policies
may be modified from time to time in accordance with Section 7.3(b).

         "Cut-Off Date" shall mean the last day of any Monthly Period.

         "Daily Originator Report" shall have the meaning set forth in Section
3.1(a).

         "Defaulted Receivable" shall mean any Receivable that:

         (a) has been or should have been written off as uncollectible in
conformity with the Credit and Collection Policy; or

         (b) is owed by an Obligor who is in Insolvency Proceedings or with
respect to which an Event of Bankruptcy has occurred; or

         (c) has been billed and remains unpaid more than 150 days after the
invoice date thereof.

                                      A-4
<PAGE>

         "Direct Expenses" shall mean, with respect to any Home, any costs
attributable to the provision of services to a Transferred Employee, including
without limitation appraisals, broker's market analyses and inspections,
brokerage commissions, title and title search fees, transfer taxes, mortgage
payments, mortgage interest (or interest on the mortgage payments at the
mortgage interest rate), insurance premiums, property taxes, cost of
establishment and maintenance of appropriate files, overnight delivery charges,
wire transfer fees, cost of interest in the manner specified in the related
Contract, cost of improvements, cost of removal and mitigation of Hazardous
Materials or gases (such as removal of asbestos, lead paint, radon gas or urea
formaldehyde insulation) and reinsulation with suitable replacement materials,
repair and maintenance costs, utilities, sales loss on resale, buyer incentive
costs and real estate closing costs.

         "Eligible Contract" shall mean:

         (a) a Relocation Management Agreement (i) that has been duly executed
    and delivered by an Employer that is an Eligible Obligor and is in full
    force and effect, (ii) (A) the rights to payment under which are assignable
    without the consent of the Employer party thereto or any other Person (other
    than the Originator), other than any such consent that has been obtained and
    remains in effect, or (B) which, if subject to any restriction on assignment
    of rights to payment, is in effect on the date of this Agreement and all of
    the Receivables under such Contract that are subject to such restriction
    constitute rights to payment for services rendered not evidenced by an
    instrument or chattel paper, (iii) that provides for the payment in full by
    the Employer of all Direct Expenses, Service Fees and Other Reimbursable
    Expenses and any loss sustained with respect to a Home covered thereby
    following the sale of such Home (less any Advance Payment with respect to
    such Home and after giving effect to the application of the Home Sale
    Proceeds with respect to such Home) (it being understood that any Contract
    that permits an Employer to approve any expenses or the price at which any
    Home is sold shall not, for that reason alone, fail to qualify as an
    Eligible Contract), (iv) that was originated in accordance with the Credit
    and Collection Policy, (v) the Receivables under which, once billed, are
    required to be paid within 65 days of the original invoice date and (vi)
    that is substantially in the form of Relocation Management Agreement
    attached as Exhibit C, with such Permitted Changes to such form as may be
    made by the Originator in the ordinary course of its business (or such other
    form as has been approved in writing by the Buyer and its successors and
    assigns);

         (b) an Equity Loan Agreement or Equity Loan Note (i) that has been duly
    executed and delivered by a Transferred Employee that is an Eligible Obligor
    and that is an employee of an Employer that is a party to a Pool Relocation
    Management Agreement (which Pool Relocation Management Agreement is then an
    Eligible Contract), (ii) that is substantially in the form of Equity Loan
    Agreement attached as Exhibit C or the form of Equity Loan Note attached as
    Exhibit C, as applicable, with such Permitted Changes to such forms as may
    be made by the Originator in the ordinary course of its business (or, in
    either case, such other form as has been approved in writing by the Buyer
    and its successors and assigns) and (iii) the obligations of the Transferred
    Employee under which are fully covered by the Guaranty or loss indemnity of
    the related Employer or

                                      A-5
<PAGE>

    Employer-purchased insurance policy under the applicable Pool Relocation
    Management Agreement;

         (c) a Home Purchase Contract that (i) has been duly executed and
    delivered by a Transferred Employee of an Employer that is a party to a Pool
    Relocation Management Agreement (which Pool Relocation Management Agreement
    is then an Eligible Contract) and (ii) is substantially in the form of Home
    Purchase Contract attached as Exhibit C, with such Permitted Changes to such
    form as may be made by the Originator in the ordinary course of its business
    (or such other form as has been approved in writing by the Buyer and its
    successors and assigns); or

         (d) a Home Sale Contract that (i) was entered into under or in
    connection with a Pool Relocation Management Agreement (which Pool
    Relocation Management Agreement is then an Eligible Contract), (ii) has been
    duly executed and delivered by the applicable Ultimate Buyer and is in full
    force and effect and (iii) is substantially in the form of the contract of
    purchase and sale used in the area where the property is located, or on a
    form prescribed by the Originator for that area, with such amendments and
    additions as may be reasonably negotiated to efficiently sell the Home (or
    such other form as has been approved in writing by the Buyer and its
    assignees and assigns).

         "Eligible Home" shall mean a Home (a) that is located within the United
States, (b) record title for which is not in the name of any Transaction Party
or any Affiliate of a Transaction Party and (c) that satisfies the requirements
specified in the definition of "Home" in the applicable Pool Relocation
Management Agreement or, if such term is not defined therein, in the applicable
Home Sale Service Supplement; provided, however, that a Home that does not
satisfy the requirement specified in clause (b) may nonetheless be treated as an
Eligible Home if and to the extent that either (i) title is recorded on terms
and conditions reasonably satisfactory to the Buyer and its assignees or (ii)
the aggregate Unpaid Balance of all Eligible Unsold Home Receivables that do not
satisfy the requirement specified in clause (b) would not exceed 10% of the
aggregate Unpaid Balance of all Eligible Unsold Home Receivables; and provided,
further, that a Home that does not satisfy the requirements specified in clause
(c) may nonetheless constitute an Eligible Home if and to the extent that (i)
the applicable Employer has acknowledged in writing that such property
constitutes a "Special Home Transaction" within the meaning of the applicable
Home Sale Service Supplement and (ii) the Originator and its Affiliates followed
all necessary procedures and obtained all necessary approvals with respect to
such Home (including without limitation approvals of the applicable Employer) as
may be required by the Credit and Collection Policy and the customary practices
of the Originator with respect to such Homes.

         "Eligible Obligor" shall mean an Obligor that:

         (a) is a United States resident (which term includes a United States
    division or branch of an entity organized in a jurisdiction outside of the
    United States, so long as such division or branch maintains a place of
    business in the United States to which all Receivables are billed);

                                      A-6
<PAGE>

         (b) is not the United States of America, any state or local government
    or any agency or instrumentality of any of the foregoing;

         (c) is not an Affiliate of the Originator or the Buyer;

         (d) is not the subject of an Insolvency Proceeding; and

         (e) has been instructed by the Originator to remit all payments on the
    CMSC Purchased Assets directly to one of the Lockboxes or Lockbox Accounts.

         "Eligible Receivable" shall mean any Receivable:

         (a) the Obligor of which is an Eligible Obligor;

         (b) that is denominated and payable only in U.S. dollars;

         (c) that was generated in the ordinary course of the Originator's
    business;

         (d) either (1) with respect to which all of the Originator's right,
    title and interest has been (or will be, at the time such Receivable becomes
    included in the CMSC Purchased Assets) validly transferred to the Buyer
    under and in accordance with the terms of this Agreement; or (2) with
    respect to any CMF Receivable only, that arose out of or with respect to an
    Equity Payment, Mortgage Payment or Mortgage Payoff made by the Buyer in
    respect of a CMF Home Purchase Contract;

         (e) that arises under or in connection with a Pool Relocation
    Management Agreement that is then an Eligible Contract, and with respect to
    which any Home Sale Contract, Home Purchase Contract, Equity Loan Agreement
    or Equity Loan Note relating to such Receivable is also an Eligible
    Contract;

         (f) that is not a Defaulted Receivable;

         (g) that is an "eligible asset" within the meaning of Rule 3a-7
    promulgated under the Investment Company Act of 1940, as amended;

         (h) that constitutes an "account" or a "general intangible" or "chattel
    paper" and not an "instrument" (except in the case of an Equity Loan, to the
    extent the same is evidenced by an Equity Loan Note), in each case within
    the meaning of the New York UCC;

         (i) the transfer of which (including without limitation the sale by the
    Originator to the Buyer or by the Buyer to ARSC) does not contravene or
    conflict with any law, rule or regulation or any contractual or other
    restriction, limitation or encumbrance that applies to the Originator (or,
    with respect to any CMF Receivable only, the Buyer) (including without
    limitation the related Contract), and the sale, assignment or transfer of
    which, and the granting of a security interest in which, does not require
    the consent of the Obligor thereof or any other Person other than any such
    consent that has

                                      A-7
<PAGE>

    been previously obtained and is in effect; provided, however, that a
    Receivable arising out of a Relocation Management Agreement that is subject
    to a restriction on assignment may nonetheless be an Eligible Receivable
    hereunder if such Receivable constitutes a right to payment for services
    rendered not evidenced by an instrument or chattel paper;

         (j) that has not been compromised, adjusted, amended or otherwise
    modified (including by extension of time for payment or the granting of any
    discounts, allowances or credits) except in a manner that is expressly
    permitted under Section 3.10(b) of the Transfer and Servicing Agreement;

         (k) that, together with the Contracts related thereto, conforms in all
    material respects with all applicable laws, rules, regulations, orders,
    judgments, decrees and determinations of all courts and other Governmental
    Authorities (whether federal, state, local or foreign and including without
    limitation usury laws);

         (l) that is not subject to an asserted reduction (other than any
    reduction on account of any offsetting account payable of the Originator or
    the Buyer to an Obligor or any Advance Payment made by the related Obligor
    so long as such reduction is included in the determination of the Aggregate
    Employer Balance with respect to the related Obligor) cancellation, rebate
    or refund or any dispute, offset, counterclaim, lien or defense whatsoever;

         (m) with respect to which the representations and warranties of the
    Originator in Section 6.1(k) of this Agreement (or with respect to any CMF
    Receivable only, of the Buyer in Section 6.1(k) of the Receivables Purchase
    Agreement) are true and correct;

         (n) that represents a bona fide obligation arising under a Contract
    that has been duly authorized and that, together with such Receivable, is in
    full force and effect and constitutes the legal, valid and binding
    obligation of the Obligor of such Receivable, enforceable against such
    Obligor in accordance with its terms, except as such enforceability may be
    limited by applicable bankruptcy, insolvency, reorganization, moratorium or
    other similar laws affecting the enforcement of creditors' rights generally
    and general principles of equity;

         (o) that, in the case of a Receivable arising on account of any Equity
    Payment, Mortgage Payoff, Mortgage Payment, Direct Expenses or any Service
    Fee or Finance Charge arising in connection with any of the foregoing,
    relates to an Eligible Home as to which (i) a Home Purchase Contract has
    been executed and delivered by the related Homeowner and the Originator or
    the Buyer, as applicable and, to the best knowledge of the Originator (or
    the Buyer, with respect to CMF Homes only), constitutes the legal, valid and
    binding obligation of such Homeowner, (ii) a Home Deed has been executed and
    delivered by the related Homeowner naming the Originator or the Buyer, as
    applicable, as transferee or with the transferee's name blank, (iii) such
    Home Purchase Contract and Home Deed have been delivered to and are then in
    the possession of the agent of CMSC (with respect to CMSC Homes) or the
    agent of CMF (with respect to

                                      A-8
<PAGE>

    CMF Homes) and (iv) either no Mortgage is outstanding or, if a Mortgage is
    outstanding, no more than one monthly payment on such Mortgage is past due;

         (p) that, in the case of a Receivable that arises from an Equity Loan,
    arose under an Equity Loan Agreement and an Equity Loan Note, each of which
    are Eligible Contracts and are then in the possession of the Servicer;

         (q) that, in the case of an Unbilled Receivable, represents the right
    to payment for services rendered; and

         (r) that, in the case of a Billed Receivable (other than an Advance
    Billing Receivable), has been fully earned by performance.

         "Eligible Unsold Home Receivable" shall mean an Unsold Home Receivable
that is an Eligible Receivable.

         "Employer" shall mean a customer of the Originator that has executed a
Relocation Management Agreement with the Originator.

         "Enhancement Agreement" shall have the meaning provided in the
Indenture.

         "Environmental Laws" shall mean all applicable federal, state or local
statutes, laws, ordinances, codes, rules, regulations and guidelines (including
consent decrees and administrative orders) relating to public health and safety
and protection of the environment.

         "Equity Loan" shall mean an advance of all or a portion of the Equity
Payment to be made to a Homeowner prior to the execution of the Home Purchase
Contract by such Homeowner.

         "Equity Loan Agreement" shall mean a loan agreement entered into by a
Transferred Employee in connection with an Equity Loan or a proposed Equity
Loan.

         "Equity Loan Note" shall mean a promissory note made by a Transferred
Employee to evidence the Transferred Employee's obligations in respect of an
Equity Loan, which may be included in the same document as an Equity Loan
Agreement.

         "Equity Payment" shall mean, with respect to any Homeowner, a payment
or credit (other than an Equity Loan) made to such Homeowner at the time of, or
following the execution of, the related Home Purchase Contract by such Homeowner
in respect of its equity interest in a Home as determined pursuant to the
applicable Home Purchase Contract.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974
and the rules and regulations thereunder, each as amended from time to time.

         "ERISA Affiliate" shall mean any trade or business (whether or not
incorporated) that is treated as a single employer with the Originator under
Section 414 of the Code.

                                      A-9
<PAGE>

         "Event of Bankruptcy" shall be deemed to have occurred with respect to
a Person if either:

         (a) a case or other proceeding has been commenced in any court without
    the application or consent of such Person, seeking the liquidation,
    reorganization, debt arrangement, dissolution, winding up or composition or
    readjustment of debts of such Person, the appointment of a trustee,
    receiver, custodian, liquidator, assignee, sequestrator or the like for such
    Person or any substantial part of its assets, or any similar action with
    respect to such Person under any law (foreign or domestic) relating to
    bankruptcy, insolvency, reorganization, winding up or composition or
    adjustment of debts and such case or proceeding continues undismissed or
    unstayed and in effect for a period of 60 days; or an order for relief with
    respect to such Person has been entered in an involuntary case under the
    Bankruptcy Code or other similar laws (foreign or domestic) now or hereafter
    in effect; or

         (b) such Person has commenced a voluntary case or other proceeding
    under any applicable bankruptcy, insolvency, reorganization, debt
    arrangement, dissolution or other similar law now or hereafter in effect or
    shall consent to the appointment of or taking possession by a receiver,
    liquidator, assignee, trustee, custodian, sequestrator (or other similar
    official) for, such Person or for any substantial part of its property, or
    shall make any general assignment for the benefit of creditors, or shall
    admit in writing its inability to, pay its debts generally as they become
    due.

         "Excluded Asset" shall mean any receivable or related asset that arises
under or relates to an Excluded Contract.

         "Excluded Contract" shall mean (a) any of the following, to the extent
that either the same have not been identified as Pool Relocation Management
Agreements or all CMSC Receivables and CMF Receivables arising thereunder have
been the subject of a CMSC Noncomplying Asset Adjustment or CMF Noncomplying
Asset Adjustment that has been fully paid: (i) if the Originator merges with any
other Person that is engaged in the relocation management business, any
agreement for relocation management services originated by such other Person
prior to the date of such merger and, so long as such business is maintained and
operated as a separate division of the Originator, any additional agreements for
relocation management services originated by such division, (ii) any agreement
for relocation management services that is not an Eligible Contract or (iii) any
agreement for relocation management services the receivables arising under which
would not be Eligible Receivables because the Employer party thereto is not
obligated to provide reimbursement for losses on resale of homes or because the
homes relating to such agreement would be located solely outside of the United
States and (b) any home purchase contract, home sale contract, equity loan note,
equity loan agreement or similar agreement entered into pursuant to any
agreement referred to in clause (a) above.

         "Final Payout Date" shall mean the earlier of the date after the
satisfaction and discharge of the Indenture pursuant to Article IV thereof on
which either (i) all of the Notes have been paid in full or (ii) the Unpaid
Balance of all outstanding CMSC Receivables has been reduced to zero; provided
that for purposes of this definition of Final Payout Date, the Unpaid

                                      A-10
<PAGE>

Balance of a Defaulted Receivable shall be deemed to be outstanding until all
Homes related thereto have been sold and such Receivable has been written off as
uncollectible.

         "Finance Charge" shall mean any interest, late payment fee or other
finance charge with respect to a Receivable or other Related Property, including
without limitation any interest accrued or to accrue on an Equity Loan, Equity
Payment, Mortgage Payoff or Mortgage Payment under the terms of the applicable
Contract or Contracts.

         "GAAP" shall mean generally accepted accounting principles, including
the opinions, statements and pronouncements of the American Institute of
Certified Public Accountants, the Financial Accounting Standards Board and the
Securities and Exchange Commission, as in effect from time to time.

         "Governmental Authority" shall mean the United States of America, any
State or other political subdivision thereof and any entity in the United States
of America or any applicable foreign jurisdiction that exercises executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

         "Guaranty" shall mean any agreement, undertaking or arrangement by
which any Person guarantees, endorses, agrees to purchase or otherwise becomes
or is contingently liable upon (by direct or indirect agreement, contingent or
otherwise, to provide funds for payment, to supply funds to, or otherwise to
invest in, a debtor, or otherwise to assure a creditor against loss) the
indebtedness, obligation or any other liability of any other Person (other than
by endorsements of instruments in the course of collection), or guarantees the
payment of dividends or other distributions on the shares of any other Person.

         "Hazardous Material" shall mean (a) any "hazardous substance" as
defined under CERCLA, (b) any "hazardous waste" as defined under the Resource
Conservation and Recovery Act, 42 U.S.C. Section 690, et seq., as amended, (c)
any petroleum product or (d) any pollutant or contaminant or hazardous,
dangerous or toxic chemical, material or substance within the meaning of any
Environmental Laws.

         "Home" shall mean a family residence or other improved real estate that
is the subject of any services provided under a Pool Relocation Management
Agreement, including without limitation any Home or property subject to a
"Special Home Transaction" within the meaning of the applicable Home Sale
Service Supplement.

         "Home Deed" shall mean, with respect to any Home, a deed or other
instrument of conveyance executed by the related Homeowner that effects the
conveyance of such Home pursuant to the related Home Purchase Contract.

         "Home Purchase Contract" shall mean the contract by which a Home is
purchased from a Homeowner pursuant to, or in connection with, a Pool Relocation
Management Agreement.

         "Home Sale Contract" shall mean, with respect to any Home, the contract
by which such Home is sold to an Ultimate Buyer.

                                      A-11
<PAGE>

         "Home Sale Proceeds" shall mean, with respect to any Home, the cash
sale proceeds received upon the sale of such Home to an Ultimate Buyer, net of
any unpaid mortgage loan amounts, closing costs, brokerage costs, commissions
owed to third parties and any other amounts payment of which are necessary to
clear title to such Home.

         "Home Sale Service Supplement" shall mean a supplement to a Pool
Relocation Management Agreement substantially in the form attached as Exhibit C.

         "Homeowner" shall mean, with respect to any Home, the Transferred
Employee and any other homeowner of record with respect to such Home.

         "Indebtedness" of any Person shall mean, in the aggregate, without
duplication, (i) all indebtedness, obligations and other liabilities of such
Person and its Subsidiaries that are, at the date as of which Indebtedness is to
be determined, includable as liabilities in a consolidated balance sheet of such
Person and its Subsidiaries, other than (x) accounts payable and accrued
expenses, (y) advances from clients obtained in the ordinary course of the
relocation management services business of any such Person and (z) current and
deferred income taxes and other similar liabilities, (ii) the maximum aggregate
amount of all liabilities of such Person or any of its Subsidiaries under any
Guaranty, indemnity or similar undertaking given or assumed of or in respect of,
the indebtedness, obligations or other liabilities, assets, revenues, income or
dividends of any Person other than such Person or one of its Subsidiaries and
(iii) all other obligations or liabilities of such Person or any of its
Subsidiaries with respect to the discharge of the obligations of any Person
other than itself or one of its Subsidiaries. For purposes of the Transaction
Documents, the Indebtedness of any Person includes the Indebtedness of any
partnership or joint venture in which such Person is a general partner or a
joint venturer.

         "Indebtedness for Borrowed Money" shall mean, with respect to any
Person, (i) any Indebtedness of such Person, contingent or otherwise, in respect
of borrowed money including all principal, interest, fees and expenses with
respect thereto (whether or not the recourse of the lender is to the whole of
the assets of such Person or only to a portion thereof), or evidenced by bonds,
notes, acceptances, debentures or other instruments or letters of credit (or
reimbursement obligations with respect thereto) but excluding capitalized lease
obligations and excluding obligations representing the deferred and unpaid
purchase price of any property.

         "Indenture" shall mean the Indenture dated as of April 25, 2000 by and
between the Issuer and the Indenture Trustee.

         "Indenture Supplement" shall have the meaning set forth in the
Indenture.

         "Indenture Trustee" shall mean Bank One, National Association, as
indenture trustee under the Indenture, and any successor thereto.

         "Independent Director" shall mean, with respect to the Buyer, ARSC or
the Issuer, an individual who is an Independent Director as defined in the
organizational documents of such entity as in effect on the date of this
Agreement.

         "Insolvency Proceeding" shall mean, with respect to any Person, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding
under any Federal or state

                                      A-12
<PAGE>

bankruptcy or similar law or any other proceeding of the type described in the
definition of Event of Bankruptcy, whether voluntary or involuntary.

         "Issuer" shall mean Apple Ridge Funding LLC, a Delaware limited
liability company.

         "Lien" shall mean, when used with respect to any Person, any interest
in any real or personal property, asset or other right held, owned or being
purchased or acquired by such Person for its own use, consumption or enjoyment
in its business that secures payment or performance of any obligation, and
includes any mortgage, lien, pledge, encumbrance, charge, retained security
title of a conditional vendor or lessor or other security interest of any kind,
whether arising under a security agreement, mortgage, deed of trust, chattel
mortgage, assignment, pledge, retention of security title, financing or similar
statement or notice or arising as a matter of law, judicial process or
otherwise.

         "Lockbox" shall mean any post office box to which the Obligors remit
CMSC Collections established pursuant to the Transfer and Servicing Agreement.

         "Lockbox Account" shall mean any lockbox account, concentration
account, depositary account or similar account (including any associated demand
deposit account) established pursuant to the Transfer and Servicing Agreement,
in which any CMSC Collections or CMF Collections are collected or deposited.

         "Lockbox Agreement" shall have the meaning provided in the Transfer and
Servicing Agreement.

         "Lockbox Bank" shall mean any institution at which a Lockbox or Lockbox
Account is maintained.

         "Material Adverse Effect" shall mean, with respect to any event or
circumstance, a material adverse effect on (a) the business, financial
condition, operations or assets of the Originator, (b) the ability of the
Originator to perform its obligations under any Transaction Document or all or
any substantial portion of the Contracts, (c) the validity or enforceability of,
or collectibility of, amounts payable by the Originator under any Transaction
Document, (d) the status, existence, perfection or priority of the interest of
the Buyer (and its assignees) in the CMSC Purchased Assets, taken as a whole, in
each case free and clear of any Lien (other than Permitted Liens) or (e) the
validity, enforceability or collectibility of all or any substantial portion of
the ARSC Purchased Assets.

         "Monthly Period" shall mean (i) a calendar month or (ii) with respect
to the initial Monthly Period for any Series, the period commencing on the
closing date with respect to such Series and ending on the last day of the same
month, or such other period set forth in the related Indenture Supplement.

         "Mortgage" shall mean, with respect to a Home, either or both of (a)
any indebtedness of the relevant Homeowner secured by a mortgage, deed of trust
or other Lien on such Home and (b) such mortgage, deed of trust or other Lien,
as the context may require.

                                      A-13
<PAGE>

         "Mortgage Payment" shall mean, with respect to any Home, any payment
actually made under any Mortgage on such Home (other than a Mortgage Payoff),
including without limitation payments of principal and interest and for taxes
and insurance.

         "Mortgage Payoff" shall mean, with respect to any Home, the amount, if
any, paid to retire the entire remaining principal balance of any Mortgage on
such Home, together with interest accrued thereon to the date of payment.

         "Notes" shall have the meaning set forth in the Indenture.

         "Obligor" shall mean, with respect to any Contract, the Person or
Persons obligated to make payments in respect of Receivables arising thereunder,
including without limitation (i) with respect to any Equity Payment, Mortgage
Payoff or Mortgage Payment, the related Employer, (ii) with respect to any
Equity Loan, both the Transferred Employee and the related Employer and (iii)
with respect to any Unsold Home Receivable, the Employer party to the related
Relocation Management Agreement.

         "Originator" shall mean CMSC and its successors and permitted assigns.

         "Originator Adjustment" shall have the meaning set forth in Section
4.3(c).

         "Originator Assets" shall have the meaning set forth in Section 2.1(a).

         "Originator Dilution Adjustment" shall have the meaning set forth in
Section 4.3(b).

         "Originator Receivables" shall have the meaning set forth in Section
2.1(a).

         "Originator Related Assets" shall have the meaning set forth in Section
2.1(a).

         "Originator Related Property" shall have the meaning set forth in
Section 2.1(a).

         "Other Reimbursable Expense" shall mean a cost or expense that is
incurred and paid in connection with services under a Pool Relocation Management
Agreement or reimbursable by the Obligor under the applicable Pool Relocation
Management Agreement, and that is not included in the calculation of Direct
Expenses thereunder.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation and any
successor thereto.

         "Performance Guarantor" shall mean PHH.

         "Permitted Change" shall mean, with respect to any Contract the form of
which is attached hereto in Exhibit C, any revisions or modifications to such
form that (i) are made by the Originator in the ordinary course of its business
consistent with the Credit and Collection Policy, (ii) do not, individually or
in the aggregate, materially adversely affect the collectibility of the CMSC
Receivables or any Receivables arising under or in connection with any CMF Home
Purchase Contract, (iii) do not, individually or in the aggregate, materially
alter (in a manner

                                      A-14
<PAGE>

adverse to the Originator or any of its assigns) the reimbursement or
indemnification obligations of such Obligor thereunder or the composition of the
losses, costs or expenses to which such reimbursement or indemnification
obligations pertain, (iv) would not cause such Contract to cease to be an
Eligible Contract or the Receivables arising thereunder to cease to be Eligible
Receivables and (v) do not violate any of the terms and provisions of this
Agreement.

         "Permitted Exception" shall mean that, with respect to any
representation, warranty or covenant with respect to the interest of the Buyer
and its assignees in the ARSC Purchased Assets or any Servicer Default, that (i)
prior to recordation (A) pursuant to Section 8.3 of this Agreement and/or
Section 2.01(d)(i) of the Transfer and Servicing Agreement or (B) upon the sale
of a Home to an Ultimate Buyer, record title to such Home may remain in the name
of the related Transferred Employee, and no recordation in real estate records
of any mortgage or any conveyance pursuant to the related Home Purchase Contract
or Home Sale Contract in favor of any Transaction Party or any of the Buyer's
assignees and assigns pursuant to the Receivables Purchase Agreement will be
made except as otherwise permitted under Section 2.01(d)(i) of the Transfer and
Servicing Agreement and (ii) no delivery of any Home Purchase Contracts, Home
Deeds and Equity Loan Notes to any custodian will be required.

         "Permitted Lien" shall mean:

              (a) with respect to any Home, the related Receivables or Related
         Property with respect thereto, (i) an inchoate Lien on the Home for
         real estate taxes not yet due and payable, (ii) a Mortgage on the Home
         created by the related Transferred Employee and (iii) any Lien that is
         fully covered by the terms of the indemnity provisions of the
         applicable Pool Relocation Management Agreement and that arises in the
         ordinary course of the Originator's business;

              (b) with respect to any CMSC Purchased Asset, any Lien in favor of
         the Buyer pursuant to this Agreement; and

              (c) with respect to any ARSC Purchased Asset, any Lien created
         pursuant to the Transaction Documents.

         "Person" shall mean an individual, partnership, corporation (including
a business trust), joint stock company, trust, limited liability company,
unincorporated association, joint venture, government or any agency or political
subdivision thereof or any other entity.

         "PHH" shall mean PHH Corporation, a Maryland corporation, and any
successor thereto.

         "PHH Guarantee" shall mean the performance guarantee dated as of the
Closing Date, executed by the Performance Guarantor in favor of the Buyer and
the Issuer.

         "Plan" shall mean each employee benefit plan (as defined in Section
3(3) of ERISA) currently sponsored, maintained or contributed to by the
Originator or any ERISA Affiliate or with respect to which the Originator or any
ERISA Affiliate has any liability.

                                      A-15
<PAGE>

         "Pool Relocation Management Agreement" shall have the meaning set forth
in Section 2.1(a).

         "Prime Rate" shall mean the Prime Rate as most recently published in
The Wall Street Journal in New York City.

         "Purchase" shall mean each purchase of CMSC Receivables and other CMSC
Purchased Assets by the Buyer from the Originator hereunder.

         "Receivable" shall mean any right arising under a Contract to receive
any payment or any funds from or on behalf of an Obligor, whether or not earned
by performance and whether constituting an account, chattel paper, instrument,
general intangible or otherwise. The term "Receivable" includes without
limitation rights to payment (whether matured or unmatured and whether absolute
or contingent) arising out of or with respect to Equity Loans, Equity Payments,
Direct Expenses, Mortgage Payments, Mortgage Payoffs, Service Fees and Other
Reimbursable Expenses and the right to payment of any and all Finance Charges
with respect to any of the foregoing, whether such amounts are owed by an
Employer, a Transferred Employee, an Ultimate Buyer or any other Obligor. The
change of a Receivable's status from that of Unsold Home Receivable to Unbilled
Receivable or from Unbilled Receivable to Billed Receivable shall not be deemed
the creation of a new Receivable for any purpose hereunder.

         "Receivables Activity Report" shall have the meaning provided in the
Transfer and Servicing Agreement.

         "Records" shall mean all Contracts, purchase orders, invoices, customer
lists, credit files and other agreements, documents, books, records and other
media for the storage of information (including without limitation tapes, disks,
punch cards, computer software and databases and related property) with respect
to the Receivables, the Related Property and/or the related Obligors.

         "Related Property" shall mean, with respect to any Receivable, (i) all
security interests or liens and property subject thereto from time to time
purporting to secure payment of such Receivable, whether pursuant to the related
Relocation Management Agreement or any other Contract related to such Receivable
or otherwise; (ii) all guarantees and other agreements or arrangements of
whatever character from time to time supporting or securing payment of such
Receivable, (iii) all rights under warranties, indemnities or insurance with
respect to such Receivable, related Contracts, CMSC Related Assets (with respect
to CMSC Receivables) or CMF Related Assets (with respect to CMF Receivables),
(iv) all rights to the CMSC Home Sale Proceeds arising out of or with respect to
any CMSC Homes and CMF Home Sale Proceeds arising out of or with respect to any
CMF Homes under the related Relocation Management Agreement and (v) all Records.

         "Relocation Management Agreement" shall mean an agreement pursuant to
which the Originator agrees to provide employee relocation, asset management or
other services, as the same may be amended, restated or otherwise modified from
time to time, including any and all supplements thereto, and any similar
agreement, howsoever denominated, and any agreement for intercultural services.

                                      A-16
<PAGE>

         "Self-Funding Obligor" shall mean an Employer that deposits funds with
the Originator in order to fund Equity Payments, Other Reimbursable Expenses or
other payments made to or on behalf of the Transferred Employees of such
Employer under the terms of the Employer's Relocation Management Agreement.

         "Seller Adjustment" shall have the meaning set forth in the Receivables
Purchase Agreement.

         "Series" shall have the meaning set forth in the Indenture.

         "Series Enhancer" shall have the meaning set forth in the Indenture.

         "Service Fee" shall mean any fee payable by an Employer under a Pool
Relocation Management Agreement, including without limitation any fee payable
with respect to the marketing and sale of a particular Home or otherwise in
connection with any employee relocation services or asset management services
performed under or in connection with such Pool Relocation Management Agreement.

         "Servicer" shall mean the Originator, in its capacity as the Servicer
under the Transfer and Servicing Agreement, and any successor thereto in such
capacity appointed pursuant to Article IX of the Transfer and Servicing
Agreement.

         "Servicer Default" shall have the meaning set forth in the Transfer and
Servicing Agreement.

         "Servicer Dilution Adjustment" shall have the meaning set forth in the
Transfer and Servicing Agreement.

         "Subsidiary" shall mean, with respect to any Person, any corporation or
other entity of which more than 50% of the outstanding capital stock or other
ownership interests having ordinary voting power to elect a majority of the
board of directors of such corporation (notwithstanding that at the time capital
stock of any other class or classes of such corporation shall or might have
voting power upon the occurrence of any contingency) or other persons performing
similar functions is at the time directly or indirectly owned by such Person.

         "Surviving Entity" shall have the meaning provided in Section
7.3(c)(i).

         "Termination Date" shall mean the date specified by the Indenture
Trustee following the occurrence of a CMF Purchase Termination Event; provided,
however, that if an Event of Bankruptcy has occurred with respect to either the
Originator or the Buyer, the Termination Date shall be deemed to have occurred
automatically without any such notice.

         "Transaction Documents" shall mean, collectively, this Agreement, the
Receivables Purchase Agreement, the Transfer and Servicing Agreement, the PHH
Guarantee, the CMF Subordinated Note, the Lockbox Agreements and all agreements,
instruments, certificates, reports and documents (other than any of the
Contracts) executed and delivered or to be executed and delivered under or in
connection with any of the foregoing, as any of the foregoing may be amended,
supplemented, restated or otherwise modified from time to time.

                                      A-17
<PAGE>

         "Transaction Party" shall mean the Buyer, the Originator, ARSC, the
Issuer or the Servicer (so long as the Servicer is the Originator or an
Affiliate thereof).

         "Transfer and Servicing Agreement" shall mean the transfer and
servicing agreement dated as of April 25, 2000 by and between the Originator,
the Buyer, ARSC, the Servicer and the Issuer.

         "Transferred Employee" shall mean an individual designated by an
authorized representative of an Employer pursuant to the applicable Relocation
Management Agreement as a person entitled to the benefits of such Relocation
Management Agreement.

         "UCC" shall mean the Uniform Commercial Code as from time to time in
effect in the applicable jurisdiction or jurisdictions.

         "Ultimate Buyer" shall mean the buyer of a Home from the Originator (or
from the Buyer or its assignee, as the case may be).

         "Unbilled Receivable" shall mean any CMSC Receivable or CMF Receivable
(other than any Unsold Home Receivable) that has not yet been billed to the
related Obligor.

         "Unmatured Servicer Default" shall have the meaning set forth in the
Transfer and Servicing Agreement.

         "Unpaid Balance" of any Receivable shall mean at any time the unpaid
amount thereof at such time; provided, however, that the Unpaid Balance of
Unsold Home Receivables with respect to any Home shall be the aggregate amount
(without duplication) of Receivables arising from Equity Payments, Mortgage
Payoffs, Mortgage Payments and Equity Loans in respect of such Home.

         "Unsold Home Receivable" shall mean any CMSC Receivable or CMF
Receivable, including any Finance Charges in respect thereof, incurred in
respect of an Equity Loan, Equity Payment, Mortgage Payoff or Direct Expenses on
a Home that has not yet been sold to an Ultimate Buyer (or the sale of which has
not been closed or the Home Sale Proceeds of which have not been received).

         B. Other Terms. All accounting terms not specifically defined herein
shall be construed in accordance with GAAP or with United States generally
accepted regulatory principles, as applicable. To the extent that the
definitions of accounting terms in this Agreement are inconsistent with the
meanings of such terms under GAAP or regulatory accounting principles, the
definitions contained in this Agreement shall control. All terms used in Article
9 of the UCC in the State of New York and not specifically defined herein are
used herein as defined in such Article 9.

         C. Computation of Time Periods. Unless otherwise stated in this
Agreement with respect to computation of a period of time from a specified date
to a later specified date, the word "from" means "from and including" and each
of the words `to" and "until' means "to but excluding".

                                      A-18
<PAGE>

         D. Reference. The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement; and references to
"Section", "subsection", "Appendix", " Schedule" and "Exhibit" in this Agreement
are references to Sections, subsections, Appendices, Schedules and Exhibits in
or to this Agreement unless otherwise specified in this Agreement.

                                      A-19

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