Document:

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                                                                   EXHIBIT 10.62

                                                                  EXECUTION COPY

                            SERIES 2002-1 SUPPLEMENT

                           Dated as of August 29, 2002

                                       to

                    MASTER INDENTURE AND SERVICING AGREEMENT

                           Dated as of August 29, 2002

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

                     SIERRA RECEIVABLES FUNDING COMPANY, LLC

                                   LOAN-BACKED

                             VARIABLE FUNDING NOTES,

                                  SERIES 2002-1

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

                                      among

                    SIERRA RECEIVABLES FUNDING COMPANY, LLC,

                                    as Issuer

                   FAIRFIELD ACCEPTANCE CORPORATION - NEVADA,

                               as Master Servicer

                      WACHOVIA BANK, NATIONAL ASSOCIATION,

                                   as Trustee

                                       and

                      WACHOVIA BANK, NATIONAL ASSOCIATION,

                               as Collateral Agent

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                                TABLE OF CONTENTS

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<Caption>
                                                                           PAGE
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                                    ARTICLE I
                     DESIGNATION of the Series 2002-1 Notes

Section 1.01.    Designation..................................................3

                                   ARTICLE II
                                   Definitions

Section 2.01.    Definitions..................................................4

Section 2.02.    Other Definitional Provisions...............................18

                                   ARTICLE III
                             Servicing Compensation

Section 3.01.    Servicing Compensation......................................18

                                   ARTICLE IV
                             THE SERIES 2002-1 NOTES

Section 4.01.    Forms Generally.............................................18

Section 4.02.    Authorized Amount; Conditions to Initial Issuance...........19

Section 4.03.    Principal, Interest and NPA Costs...........................20

Section 4.04.    Nonrecourse to the Issuer...................................20

Section 4.05.    Dating of the Notes.........................................20

Section 4.06.    Payments on the Series 2002-1 Notes; Payment of NPA Costs...21

Section 4.07.    Increases in Notes Principal Amount.........................21

Section 4.08.    Reduction of the Facility Limit.............................22

Section 4.09.    Increase of the Facility Limit..............................23

Section 4.10.    Repayment Obligation........................................23

Section 4.11.    Transfer Restrictions.......................................24

Section 4.12.    Tax Treatment...............................................26

                                    ARTICLE V
           REPRESENTATIONS AND WARRANTIES OF THE ISSUER; ASSIGNMENT OF
                         REPRESENTATIONS AND WARRANTIES

Section 5.01.    Representations and Warranties of the Issuer................26

Section 5.02.    Assignment of Representations and Warranties................27

Section 5.03.    Addition of New Sellers.....................................27
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                                   ARTICLE VI
                       PAYMENTS, SECURITY AND ALLOCATIONS

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                                TABLE OF CONTENTS
                                   (continued)

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                                                                           PAGE
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Section 6.01.    Priority of Payments........................................29

Section 6.02.    Determination of Monthly Principal..........................30

Section 6.03.    Information Provided to Trustee.............................30

Section 6.04.    Payments....................................................30

Section 6.05.    Collection Account..........................................31

Section 6.06.    Reserve Account.............................................32

Section 6.07.    Hedge Agreement.............................................34

Section 6.08.    Replacement of Hedge Provider...............................34

                                   ARTICLE VII
                   ADDITION, RELEASE AND SUBSTITUTION OF LOANS

Section 7.01.    Addition of Series 2002-1 Collateral........................35

Section 7.02.    Release of Defective Loans..................................37

Section 7.03.    Release of Defaulted Loans..................................38

Section 7.04.    Release Upon Transfer to New Series.........................38

Section 7.05.    Release Upon Optional Substitution..........................39

Section 7.06.    Release Upon Payment in Full................................40

                                  ARTICLE VIII
                       REPORTS TO TRUSTEE AND NOTEHOLDERS

Section 8.01.    Monthly Report to Trustee...................................40

Section 8.02.    Monthly Servicing Report....................................40

Section 8.03.    Delivery of Reports to Noteholders..........................40

Section 8.04.    Tax Reporting...............................................40

                                   ARTICLE IX
                               AMORTIZATION EVENTS

Section 9.01.    Amortization Events.........................................41

                                    ARTICLE X
                                Events of Default

Section 10.01.   Events of Default...........................................44

Section 10.02.   Acceleration of Maturity; Rescission and Annulment..........45

Section 10.03.   Authority to Institute Proceedings and Direct Remedies......45

Section 10.04.   Distributions of Amounts Collected..........................45
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                                      -ii-
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                                TABLE OF CONTENTS
                                   (continued)

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                                                                           PAGE
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Section 10.05.   Sale of Defaulted Loans After an Event of Default...........46

                                   ARTICLE XI
                   PROVISIONS RELATING TO THE master SERVICER

Section 11.01.   Master Servicer Advances....................................46

Section 11.02.   Additional Events of Servicer Defaults......................47

Section 11.03.   Additional Conditions to Master Servicer Transfer...........48

Section 11.04.   Fair Market Value of Defaulted Loans........................48

                                   ARTICLE XII
                            Miscellaneous Provisions

Section 12.01.   Ratification of Agreement...................................49

Section 12.02.   Counterparts................................................49

Section 12.03.   Governing Law...............................................49

Section 12.04.   Notices to Deal Agent and Bank of America, N.A..............49

Section 12.05.   Changes to Credit Agreement.................................50

Section 12.07.   Satisfaction of Rating Agency Condition.....................50

Section 12.08.   Amendment to Documents......................................50
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EXHIBITS
<S>                                                                          <C>
EXHIBIT A    Form of Supplemental Grant......................................A-1

EXHIBIT B    Form of Series 2002-1 Notes and Certificate of Authentication...B-1

EXHIBIT C    List of Initial Principal Amounts...............................C-1

EXHIBIT D    Form of Monthly Report..........................................D-1

EXHIBIT E    Methodology for Calculation of Extrapolated Cumulative
             Cancellation Rate...............................................E-1

EXHIBIT F    Forms of Documents to be used by New Sellers:

             Form F-1 --  Form of Purchase Agreement.........................F-1

             Form F-2 --  Form of Series 2002-1 Purchase Supplement..........F-2
</Table>

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          SERIES 2002-1 SUPPLEMENT, dated as of August 29, 2002, among SIERRA
RECEIVABLES FUNDING COMPANY, LLC, a limited liability company formed under the
laws of the State of Delaware, as Issuer, FAIRFIELD ACCEPTANCE CORPORATION -
NEVADA, a Delaware corporation, as Master Servicer, WACHOVIA BANK, NATIONAL
ASSOCIATION, a national banking association, not in its individual capacity, but
solely as Trustee under the Agreement, and WACHOVIA BANK, NATIONAL ASSOCIATION,
a national banking association, as Collateral Agent.

          Section 2.10 of the Agreement provides that the Issuer may, pursuant
to one or more Supplements, issue one or more Series of Notes and set forth the
terms of such Series.

          Pursuant to this Supplement, the Issuer creates the Series 2002-1
Notes and specifies the terms thereof.

          All things necessary to make this Supplement a valid agreement of the
Issuer, the Master Servicer, the Trustee and the Collateral Agent in accordance
with its terms have been done.

                                GRANTING CLAUSES

          The Issuer hereby Grants to the Collateral Agent, for the benefit of
the Trustee for the benefit of the Series 2002-1 Noteholders, all of the
Issuer's right, title and interest, whether now owned or hereafter acquired, in,
to and under the following:

          (a)  all Series 2002-1 Pledged Loans, together with all other Series
               2002-1 Pledged Assets;

          (b)  the Collection Account and all money, investment property,
               instruments and other property credited to, carried in or
               deposited in the Collection Account including any sub-accounts
               within the Collection Account;

          (c)  all money, investment property, instruments and other property
               credited to, carried in or deposited in a Lockbox Account or any
               other bank or similar account into which Series 2002-1
               Collections are deposited, to the extent such money, investment
               property, instruments and other property constitutes Series
               2002-1 Collections;

          (d)  the Reserve Account and all moneys, investment property,
               instruments and other property credited to, carried in or
               deposited in the Reserve Account including any sub-accounts
               within the Reserve Account;

          (e)  the Hedge Agreement and all rights and interests therein and
               thereto;

          (f)  all rights, remedies, powers, privileges and claims of the Issuer
               under or with respect to the Series 2002-1 Pool Purchase
               Supplement and each Series 2002-1 Purchase Supplement including,
               without limitation all rights to enforce payment obligations of
               the Issuer, the Depositor and each Seller and all rights to
               collect all monies due and to become due to the Issuer

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               from the Depositor or any Seller under or in connection with the
               Series 2002-1 Pool Purchase Supplement or any Series 2002-1
               Purchase Supplement (including without limitation all interest
               and finance charges for late payments accrued thereon and
               proceeds of any liquidation or sale of Series 2002-1 Pledged
               Loans or resale of Timeshare Properties or Vacation Credits and
               all other Collections on the Series 2002-1 Pledged Loans) and all
               other rights of the Issuer to enforce the Series 2002-1 Pool
               Purchase Supplement and each Series 2002-1 Purchase Supplement;

          (g)  to the extent related to the Series 2002-1 Pledged Loans or the
               Series 2002-1 Pledged Assets, all rights, remedies, powers,
               privileges and claims of the Issuer under or with respect to the
               Pool Purchase Agreement and the each of the Purchase Agreements
               including, without limitation all rights to enforce payment
               obligations of the Issuer, the Depositor and each Seller and all
               rights to collect all monies due and to become due to the Issuer
               from the Depositor or any Seller under or in connection with the
               Series 2002-1 Pledged Loans (including without limitation all
               interest and finance charges for late payments accrued thereon
               and proceeds of any liquidation or sale of Series 2002-1 Pledged
               Loans or resale of Timeshare Properties or Vacation Credits and
               all other Collections on the Series 2002-1 Pledged Loans) and all
               other rights of the Issuer to enforce the Pool Purchase Agreement
               and each Purchase Agreement;

          (h)  all certificates and instruments if any, from time to time
               representing or evidencing any of the foregoing property
               described in clauses (a) through (g) above;

          (i)  all present and future claims, demands, causes of and choses in
               action in respect of any of the foregoing and all interest,
               principal, payments and distributions of any nature or type on
               any of the foregoing;

          (j)  all accounts, chattel paper, deposit accounts, documents, general
               intangibles, goods, instruments, investment property,
               letter-of-credit rights, letters of credit, money, and oil, gas
               and other minerals, consisting of, arising from, or relating to,
               any of the foregoing; and

          (k)  all proceeds of the foregoing property described in clauses (a)
               through (j) above, any security therefor, and all interest,
               dividends, cash, instruments, financial assets and other
               investment property and other property from time to time
               received, receivable or otherwise distributed in respect of, or
               in exchange for or on account of the sale, condemnation or other
               disposition of, any or all of the then existing Series 2002-1
               Collateral, and including all payments under Insurance Policies
               (whether or not a Seller or an Originator, the Depositor, the
               Issuer, the Collateral Agent or the Trustee is the loss payee
               thereof) or any indemnity, warranty or guaranty payable by reason
               of loss or damage to or otherwise with respect to any of the
               Series 2002-1 Collateral; and

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          (l)  all proceeds of the foregoing.

The property described in the preceding sentence is collectively referred to as
the "SERIES 2002-1 COLLATERAL." The Grant of the Series 2002-1 Collateral to the
Collateral Agent is for the benefit of the Trustee to secure the Series 2002-1
Notes equally and ratably without prejudice, priority or distinction among any
Series 2002-1 Notes by reason of difference in time of issuance or otherwise,
except as otherwise expressly provided in the Agreement or in this Supplement
and to secure (i) the payment of all amounts due on the Series 2002-1 Notes in
accordance with their respective terms, (ii) the payment of all other sums
payable by the Issuer under the Series 2002-1 Documents or the Series 2002-1
Notes and (iii) compliance by the Issuer with the provisions of the Series
2002-1 Documents. This Supplement is a security agreement within the meaning of
the UCC.

          The Collateral Agent and the Trustee acknowledge the Grant of the
Series 2002-1 Collateral, and the Collateral Agent accepts the Series 2002-1
Collateral in trust hereunder in accordance with the provisions hereof and
agrees to perform the duties herein to the end that the interests of the Series
2002-1 Noteholders may be adequately and effectively protected.

          The Trustee and the Collateral Agent are directed to enter into the
Collateral Agency Agreement pursuant to which the Collateral Agent will act as
agent for the benefit of the Trustee for the purpose of maintaining a security
interest in the Series 2002-1 Collateral. The Trustee and Series 2002-1
Noteholders shall be bound by the terms of the Collateral Agency Agreement upon
the Trustee's execution thereof on their behalf. The Series 2002-1 Collateral
shall not secure the payment by or performance by the Issuer of any obligations
related to any other Series.

                                    ARTICLE I

                     DESIGNATION OF THE SERIES 2002-1 NOTES

          Section 1.01. DESIGNATION.

          (a)  There is hereby created and designated a Series of Notes to be
issued pursuant to the Agreement and this Supplement to be known as "SIERRA
RECEIVABLES FUNDING COMPANY, LLC, Loan-Backed Variable Funding Notes, Series
2002-1," the "SERIES 2002-1 NOTES" or the "NOTES."

          (b)  The terms of the Series 2002-1 Notes shall be as set forth in
this Supplement.

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

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                                   ARTICLE II

                                   DEFINITIONS

          Section 2.01. DEFINITIONS.

          Terms used herein, but not defined herein, shall have the meaning
assigned to such terms in the Agreement or if not defined in the Agreement, the
meaning assigned to such terms in the applicable Purchase Agreement or the
applicable Series 2002-1 Purchase Supplement. Each capitalized term defined
herein shall relate only to the Series 2002-1 Notes and no other Series issued
by the Issuer. Whenever used in this 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.

          "ACCRUAL PERIOD" means, with respect to the Series 2002-1 Notes for
any Payment Date, the period beginning on and including the immediately
preceding Payment Date and ending on and excluding the current Payment Date,
except that the first Accrual Period will begin on and include the Closing Date
and end on and exclude the September 2002 Payment Date.

          "ACQUIRED PORTFOLIO LOAN" means a loan (which shall be a loan,
installment contract or other contractual obligation incurred to finance the
acquisition of an interest in a vacation property or rights to use vacation
properties or otherwise substantially similar to Loans) which a Seller has
acquired either by purchase of a portfolio or by acquisition of an entity which
owns the portfolio and new loans originated with respect to such entity, program
or portfolio during the Transition Period; provided that, except for purposes of
calculating the Transaction Period Excess Amount, the term Acquired Portfolio
Loan shall not include loans acquired from Kona.

          "ADDITION CUT-OFF DATE" means, with respect to Additional 2002-1
Pledged Loans, the cut-off date stated in the related Supplemental Grant.

          "ADDITION DATE" means, with respect to Additional 2002-1 Pledged
Loans, the date designated in the related Supplemental Grant as the Addition
Date.

          "ADDITIONAL 2002-1 PLEDGED LOANS" means Loans (including Qualified
Substitute Loans) pledged under this Supplement and a Supplemental Grant
subsequent to the Closing Date.

          "ADVANCE RATE" means:

               (i)    83% if the Three Month Default Percentage calculated as of
          the last day of each of the immediately preceding three Due Periods is
          less than 1.15%, or

               (ii)   80% if the Three Month Default Percentage calculated as of
          the last day of any of the immediately preceding three Due Periods is
          1.15% or more.

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          "AGREEMENT" means the Master Indenture and Servicing Agreement dated
as of August 29, 2002 among the Issuer, the Master Servicer, the Trustee and the
Collateral Agent, as amended, supplemented and restated from time to time.

          "ALTERNATE INVESTOR" has the meaning assigned to that term in the Note
Purchase Agreement.

          "AMORTIZATION EVENT" has the meaning specified in Section 9.01.

          "AVAILABLE FUNDS" for any Payment Date means (i) all payments
(including prepayments) of principal, interest and fees collected from or on
behalf of the Obligors during the related Due Period on the Series 2002-1
Pledged Loans; (ii) all Master Servicer Advances made on or prior to the Payment
Date with respect to payments due from the Obligors on the Series 2002-1 Loans
during the related Due Period; (iii) the Release Price paid to the Trustee for
the release of any Series 2002-1 Pledged Loan and the related Series 2002-1
Pledged Assets; (iv) all Net Liquidation Proceeds from the disposition of a
Series 2002-1 Defaulted Loan; (v) any Net Hedge Receipts; and (vi) any amount
withdrawn from the Reserve Account under subsection 6.06(b) of this Supplement
and deposited into the Collection Account to be included as Available Funds on
or in respect of such Payment Date.

          "BANK BASE RATE" has the meaning assigned to that term in the Note
Purchase Agreement.

          "BORROWING BASE" means, at any time, the product of

          (i)  the remainder of (A) the Series 2002-1 Adjusted Loan Balance at
          such time minus (B) the Excess Concentration Amount at such time
          multiplied by

          (ii) the Advance Rate.

          "BORROWING BASE SHORTFALL" means, at any time, the amount, if any, by
which the Notes Principal Amount exceeds the Borrowing Base then if effect.

          "CANCELLED LOAN" means a Loan with respect to which cancellation or
foreclosure actions have or should have been commenced in accordance with
Customary Practices and/or Credit Standards and Collection Policies by reason of
(a) uncollectibility in whole or in part, (b) relinquishment by the Obligor of
its rights in and to the related Timeshare Property or (c) termination in
connection with the origination of a new Loan.

          "CARRYING COSTS" has the meaning assigned to that term in the Note
Purchase Agreement.

          "CENDANT RATINGS REQUIREMENT" means that long-term senior secured debt
ratings of Cendant be not less than Baa3 by Moody's and BBB- by S&P.

          "CHANGE OF CONTROL" means that any of the Issuer, the Depositor, or
any Seller of Series 2002-1 Pledged Loans ceases to be wholly owned, directly or
indirectly, by Cendant.

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          "CLASS" has the meaning assigned to that term in the Note Purchase
Agreement.

          "CLASS AGENT" has the meaning assigned to that term in the Note
Purchase Agreement.

          "CLOSING DATE" means August 30, 2002.

          "COLLECTION ACCOUNT" means the account established pursuant to Section
6.05 of this Supplement.

          "COLLATERAL AGENT" means Wachovia Bank, National Association, a
national banking association, as Collateral Agent, its successors and assigns
and any entity which is substituted as Collateral Agent under the terms of the
Collateral Agency Agreement.

          "CONDUIT" has the meaning assigned to that term in the Note Purchase
Agreement.

          "CONSOLIDATED EXTRAPOLATED CUMULATIVE CANCELLATION RATE" or "CECCR"
means the weighted average of the individual Extrapolated Cumulative
Cancellation Rate for each Seller.

          "CONTRACT RATE" means, with respect to any Series 2002-1 Pledged Loan,
the annual rate at which interest accrues on such Loan, as modified from time to
time only in accordance with the terms of PAC or Credit Card Account (if
applicable).

          "CUT-OFF DATE" means (a) with respect to the Initial Series 2002-1
Pledged Loans, the Initial Cut-Off Date, (b) with respect to any Additional
Series 2002-1 Pledged Loan including any Qualified Substitute Loan such date as
is set forth in the Supplemental Grant.

          "DEAL AGENT" means Fleet Securities, Inc. in its capacity as "Deal
Agent" under the Note Purchase Agreement or any successor to or assignee thereof
(to the extent such assignment is permitted under the Note Purchase Agreement).

          "DEFAULT PERCENTAGE" means for any Due Period a fraction (i) the
numerator of which is the aggregate outstanding Loan Balance of all Series
2002-1 Pledged Loans which became Defaulted Loans during such Due Period and
(ii) the denominator of which is the Series 2002-1 Aggregate Loan Balance as of
the last day of such Due Period.

          "DEFAULTED LOAN" means any Series 2002-1 Pledged Loan (a) with any
portion of a Scheduled Payment delinquent more than 60 days, (b) with respect to
which the Master Servicer shall have determined in good faith that the Obligor
will not resume making Scheduled Payments, (c) for which the related Obligor
shall have become the subject of a proceeding under a Debtor Relief Law or (d)
for which cancellation or foreclosure actions have been commenced.

          "DEFECTIVE LOAN" means any Series 2002-1 Pledged Loan which is a
Defective Loan as such term is defined in the Purchase Agreement under which
such Series 2002-1 Pledged Loan was sold to the Depositor.

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          "DEFERRED LOAN" means a Loan with respect to which the Obligor has
been granted an extension of the time required to pay the amounts due thereon.

          "DELAYED COMPLETION GREEN LOANS" means Series 2002-1 Pledged Loans
which are Green Loans and which have been Series 2002-1 Pledged Loans for six
months or more and the Green Timeshare Property is still subject to completion.

          "DELAYED COMPLETION GREEN LOANS EXCESS AMOUNT" means, at any time, the
sum of the Loan Balances for all Series 2002-1 Pledged Loans which are Delayed
Completion Green Loans.

          "DELINQUENCY RATIO" means for any Due Period, a fraction the numerator
of which is the aggregate outstanding Loan Balance of all 2002-1 Pledged Loans
which are Delinquent Loans at the end of such Due Period and the denominator of
which is the Series 2002-1 Aggregate Loan Balance as of the last day of such Due
Period.

          "DELINQUENT LOAN" means a Series 2002-1 Pledged Loan with any
Scheduled Payment or portion of a Scheduled Payment delinquent more than 30 days
other than a Loan that is a Defaulted Loan.

          "DETERMINATION DATE" means with respect to any Payment Date, the
second Business Day prior to such Payment Date.

          "DUE DATE" has, with respect to any Series 2002-1 Pledged Loan, the
meaning assigned to the term in the applicable Purchase Agreement.

          "DUE PERIOD" means for any Payment Date, the immediately preceding
calendar month; provided that for the Payment Date occurring in September 2002,
with respect to Series 2002-1, the Due Period shall be the period from and
including the Closing Date through and including the last day of August, 2002.

          "EFI EXCESS AMOUNT" means, at any time, the amount by which (i) the
sum of the Loan Balances for all Series 2002-1 Pledged Loans which are EFI
Originated Loans, exceeds (ii) ten percent (10%) of the Series 2002-1 Adjusted
Loan Balance.

          "EFI LOANS" means Series 2002-1 Pledged Loans which were sold to the
Depositor under the terms of the Master Loan Purchase Agreement dated as of
August 29, 2002 between EFI and the Depositor and the Series 2002-1 Purchase
Supplement thereto and transferred to the Issuer under the terms of the Pool
Purchase Agreement.

          "EFI ORIGINATED LOANS" means any Loan which was originated by EFI or
by any successor in accordance with EFI's Credit Standards and Collection
Policies.

          "ELIGIBLE ACCOUNT" means either (a) a segregated account (including a
securities account) with an Eligible Institution or (b) a segregated trust
account with the corporate trust department of a depository institution
organized under the laws of the United States of America or any one of the
states thereof or the District of Columbia (or any domestic branch of a foreign
bank), having corporate trust powers and acting as trustee for funds deposited
in such account, so

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long as any of the securities of such depository institution shall have a credit
rating from each Rating Agency in one of its generic rating categories which
signifies investment grade.

          "ELIGIBLE LOAN," with respect to any Series 2002-1 Loan, has the
meaning assigned to that term in the Series 2002-1 Purchase Supplement pursuant
to which such Loan was transferred to the Depositor.

          "ESTIMATED FEES" means an amount to be stated by the Master Servicer
each month in the Monthly Servicer Report and used to calculate the Reserve
Required Amount which Estimated Fees amount shall be the Master Servicer's good
faith estimate of the sum of the Monthly Trustee Fee for the immediately
following three months, the Monthly Master Servicer Fee for the immediately
following three months and the fees to become due under the Fee Letters for the
immediately following three months.

          "EVENT OF DEFAULT" means one or more of the events described in
Section 10.1 of this Supplement.

          "EXCESS CONCENTRATION AMOUNT" means on any day, an amount equal to the
sum of (i) the Non-US Excess Amount, (ii) the Green Loans Excess Amount, (iii)
the EFI Excess Amount, (iv) Delayed Completion Green Loans Excess Amount, (v)
the Single Development Excess Amount, (vi) the New Seller Excess Amount, (vii)
the Transition Period Excess Amount, (viii) the Large Loans Excess Amount, and
(ix) the Geographic Concentration Excess Amount.

          "EXTRAPOLATED CUMULATIVE CANCELLATION RATE" or "ECCR" has the meaning
assigned thereto in Section 9.01.

          "FACILITY LIMIT" means $550,000,000, as such amount may be reduced
from time to time in accordance with Section 4.08 hereof and the Note Purchase
Agreement or increased in accordance with Section 4.09 hereof and the Note
Purchase Agreement.

          "FAC SERIES 2002-1 PLEDGED LOANS" means Series 2002-1 Pledged Loans
sold to the Depositor by FAC.

          "FEE LETTER" has the meaning assigned to such term in the Note
Purchase Agreement.

          "GEOGRAPHIC CONCENTRATION EXCESS AMOUNT" means at any time, if, with
respect to the locations and jurisdictions listed in any one of the following
numbered categories of

     (1)  Daytona Beach, Florida,

     (2)  Destin, Florida,

     (3)  Fort Lauderdale/Pompano, Florida,

     (4)  Orlando, Florida,

     (5)  State of California,

                                        8
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     (6)  State of Nevada,

     (7)  States of Arizona or Colorado,

     (8)  State of Missouri,

     (9)  States of Arkansas or Tennessee,

     (10) States of North Carolina, South Carolina or Georgia,

     (11) State of Hawaii,

     (12) Washington, D.C. or

     (13) the Commonwealth of Virginia,

the Loan Balances of all FAC Series 2002-1 Pledged Loans which relate to Resorts
located in the such category exceed twenty-five percent (25%) of the Series
2002-1 Adjusted Loan Balance, then the Geographic Concentration Excess Amount
shall be the sum of the excess amounts for all of the categories for which an
excess exists.

          "GREEN LOAN" means a Loan the proceeds of which are used to finance
the purchase of a Timeshare Property for which construction on the related
Resort has not yet begun or is subject to completion.

          "GREEN LOANS EXCESS AMOUNT" means, at any time, (A) if the Cendant
Ratings Requirement is then met, an amount by which (i) the sum of the Loan
Balances for all Series 2002-1 Pledged Loans which are Green Loans exceeds (ii)
ten percent (10%) of the Series 2002-1 Adjusted Loan Balance of the Series
2002-1 Pledged Loans or (B) if the Cendant Ratings Requirement is not then met,
the sum of the Loan Balances for all Series 2002-1 Pledged Loans which are Green
Loans.

          "GROSS EXCESS SPREAD" means for any Payment Date the Series 2002-1
Interest Collections for the immediately preceding Due Period, MINUS the sum of
(i) the aggregate amount of Notes Interest due on such Payment Date and (ii) the
Monthly Master Servicer Fee due on such Payment Date.

          "GROSS EXCESS SPREAD PERCENTAGE" means for any Due Period the
percentage equivalent of a fraction, the numerator of which is the product of 12
times the Gross Excess Spread for the related Payment Date and the denominator
of which is the average daily Series 2002-1 Aggregate Loan Balance.

          "HEDGE AGREEMENT" means the cap confirmation originally dated on or
about the Closing Date between the Issuer and the counterparty as Hedge Provider
and as such Hedge Agreement may be amended, modified, adjusted or replaced.

          "HEDGE PROVIDER" means any entity which enters into a Hedge Agreement
with the Issuer.

                                        9
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          "INITIAL CUT-OFF DATE" means the close of business on August 27, 2002.

          "INITIAL NOTES PRINCIPAL AMOUNT" means the principal amount of the
Series 2002-1 Notes issued on the Closing Date, being in the aggregate
$232,506,160.43 and, with respect to each Note, the amount set forth in Exhibit
C.

          "INITIAL SERIES 2002-1 PLEDGED LOANS" means those Loans listed on the
Series 2002-1 Loan Schedule delivered to the Collateral Agent as of the Closing
Date.

          "ISSUER" means Sierra Receivables Funding Company, LLC, a Delaware
limited liability company and its successors and assigns.

          "KONA" means Kona Hawaiian Vacation Ownership, LLC, a Hawaii limited
liability company, and its successors and assigns.

          "LARGE LOANS EXCESS AMOUNT" means, at any time, the sum of (a) the
combined amount of the Loan Balances of all Series 2002-1 Pledged Loans which
have a Loan Balance at such time greater than $100,000 plus (b) the amount by
which (i) the combined amount of the Loan Balances of all Series 2002-1 Pledged
Loans which have a Loan Balance at such time of $75,000 or more (but not more
than $100,000) exceeds (ii) five percent (5%) of the Series 2002-1 Adjusted Loan
Balance.

          "LIQUIDITY AGREEMENT" has the meaning assigned to such term in the
Note Purchase Agreement.

          "LIQUIDITY FEES" means with respect to any Class, the liquidity fees
described in the Fee Letter for that Class.

          "LIQUIDITY REDUCTION AMORTIZATION PERIOD" means the period beginning
with the Payment Date occurring in the first calendar month following the
occurrence of a Liquidity Reduction Date and continuing through the earlier of
(i) the Payment Date on which the Liquidity Reduction Amount has been paid in
full or (ii) the last Payment Date prior to the occurrence of an Amortization
Event.

          "LIQUIDITY REDUCTION AMOUNT" means, if a Liquidity Reduction Event has
occurred with respect to a Conduit, the principal amount of Notes held by such
Class as of the Payment Date immediately following the applicable Liquidity
Reduction Date.

          "LIQUIDITY REDUCTION DATE" means the date on which a Liquidity
Reduction Event occurs.

          "LIQUIDITY REDUCTION EVENT" means the Liquidity Agreement of a Conduit
or Alternate Investor shall be terminated for any reason (whether at the stated
maturity or earlier) or shall otherwise cease to be in full force and effect.

          "LIQUIDITY TERMINATION DATE" has the meaning assigned to that term in
the Note Purchase Agreement.

                                       10
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          "MAJORITY FACILITY INVESTORS" has the meaning assigned to that term in
the Note Purchase Agreement.

          "MARKET SERVICING RATE" means the rate calculated by the Trustee
following a Servicer Default and which rate shall be calculated as follows: (1)
the Trustee shall, within 10 Business Days after the occurrence of a Servicer
Default, solicit bids from entities which are experienced in servicing loans
similar to the Pledged Loans and shall request delivery of such bids to the
Trustee within 30 days of the delivery of the notice to potential Successor
Servicer, and such bids shall state a servicing fee as part of the bid and (2)
upon the receipt of three arms length bids, the Trustee shall disregard the
highest bid and the lowest bid and select the remaining middle bid, and the
servicing fee rate bid by such bidder shall be the Market Servicing Rate.

          "MASTER SERVICER" means Fairfield Acceptance Corporation-Nevada, a
Delaware corporation, or if a change in Master Servicer has occurred in
accordance with the terms of subsection 5.12(b) of the Agreement and Section
11.03 of this Supplement, Trendwest and, in each case, its successors and
assigns, as Master Servicer under the Agreement or if any Service Transfer
occurs under the Agreement, and thereafter means the Successor Master Servicer
appointed pursuant to Section 10.2 of the Agreement.

          "MASTER SERVICER ADVANCE" means amounts, if any, advanced by the
Master Servicer, at its option, pursuant to Section 11.01 to cover any shortfall
between (i) the Scheduled Payments on the Series 2002-1 Pledged Loans for a Due
Period, and (ii) the amounts actually deposited in the Collection Account on
account of such Scheduled Payments on or prior to the Payment Date immediately
following such Due Period.

          "MATURITY DATE" means August 15, 2005.

          "MONTHLY INTEREST" for each Note means the Notes Interest due and
payable on any Payment Date.

          "MONTHLY PRINCIPAL" has the meaning specified in Section 6.02.

          "MONTHLY MASTER SERVICER FEE" means, in respect of any Due Period (or
portion thereof), an amount equal to one-twelfth of the product of (a) 1.0% and
(b) the Series 2002-1 Aggregate Loan Balance at the beginning of such Due Period
(or portion thereof) or if a Successor Master Servicer has been appointed and
accepted the appointment or if the Trustee is acting as Master Servicer, an
amount equal to one-twelfth of the product of (x) the lesser of 3.5% and the
Market Servicing Rate and (y) the Series 2002-1 Aggregate Loan Balance at the
beginning of such Due Period.

          "MONTHLY TRUSTEE FEE" means, in respect of any Due Period, an amount
equal to one-twelfth of 0.01% of the Notes Principal Amount as of the first day
of such Due Period.

          "NET HEDGE PAYMENT" means with respect to any Payment Date, the
aggregate amount, if any, which the Issuer is obligated to pay as an additional
premium to the Hedge Provider on such Payment Date as a result of an increase in
the notional amount of the Hedge Agreement and/or any other change in the terms
or adjustments of the Hedge Agreement which

                                       11
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require payment of an increased or additional premium; the amount of any such
Net Hedge Payment shall be calculated by the Master Servicer and provided in
writing to the Trustee and the Deal Agent.

          "NET HEDGE RECEIPT" means with respect to any Payment Date, the
aggregate amount, if any, paid on the Payment Date to the Trustee under the
terms of the Hedge Agreement then in effect including payments for termination
or sale of all or a portion of the Hedge Agreement.

          "NET LIQUIDATION PROCEEDS" means, with respect to any Defaulted Loan
which is a Series 2002-1 Pledged Loan and which has not been released from the
Lien of this Supplement, the proceeds of the sale, liquidation or other
disposition of the Defaulted Loan and/or related Series 2002-1 Pledged Assets.

          "NEW SELLER" means an entity other than FAC, EFI or Trendwest which
(a) is a subsidiary of Cendant, (b) performs its own loan origination and
servicing, (c) has entered into a Purchase Agreement and Series 2002-1 Purchase
Supplement as provided in Section 5.03 and, (d) with respect to any Loan Granted
under this Supplement has complied with all conditions set forth in Section
5.03.

          "NEW SELLER EXCESS AMOUNT" means, at any time, an amount equal to the
sum of (a) the amount by which the sum of the Loan Balances for Series 2002-1
Pledged Loans that were sold to the Depositor by any one New Seller exceeds 10%
of the Series 2002-1 Adjusted Loan Balance plus, without duplication and (b) the
amount by which the sum of the Loan Balances for Series 2002-1 Pledged Loans
that were sold to the Depositor by all New Sellers exceeds 15% of the Series
2002-1 Adjusted Loan Balance.

          "NEW SELLER LOANS" means Loans sold by a New Seller to the Depositor
under a Purchase Agreement.

          "NON-US EXCESS AMOUNT" means, at any time, the amount by which (i) the
sum of the Loan Balances for all Series 2002-1 Loans with Obligors with billing
addresses not located in the United States of America exceeds (ii) five percent
(5%) of the Series 2002-1 Adjusted Loan Balance.

          "NOTE PURCHASE AGREEMENT" means the Note Purchase Agreement dated as
of August 29, 2002 which relates to the sale of the Series 2002-1 Notes by the
Issuer and which is by and among the Issuer, the Depositor, the Master Servicer,
the Performance Guarantor, the Deal Agent, the Conduits, the Alternate Investors
and the Class Agents (each such term not defined herein has the meaning set
forth in the Note Purchase Agreement) as amended, restated, supplemented or
otherwise modified.

          "NOTES" means the Series 2002-1 Notes and "Note" means any one of the
Series 2002-1 Notes.

          "NOTES INCREASE" means a draw on the Series 2002-1 Notes resulting in
an increase in the Notes Principal Amount outstanding.

                                       12
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          "NOTES INCREASE DATE" means with respect to a Notes Increase, the
Payment Date on which the Notes Increase occurs pursuant to Section 4.07 of this
Supplement.

          "NOTES INTEREST" means for any Payment Date and for each Note
outstanding during the related Accrual Period, an amount equal to the Carrying
Costs of the related Class due on such Payment Date as such amount is reported
to the Trustee by the Deal Agent or the Master Servicer; PLUS the Liquidity Fees
and Program Fees due on such Payment Date under the terms of the related Fee
Letter as such amounts are reported to the Trustee by the Deal Agent or the
Master Servicer.

          "NOTES PRINCIPAL AMOUNT" means as of the close of business on any
date, with respect to any Note, the Initial Notes Principal Amount of that Note,
less the aggregate amount of principal payments made on that Note on or prior to
such date plus the sum of all increases in that Note occurring pursuant to
Section 4.07 on or prior to such date; PROVIDED that any principal payments
required to be returned to the Issuer in connection with any Insolvency
Proceeding shall be reinstated to the Notes Principal Amount.

          "NOTEHOLDER" or "HOLDER" means the Person in whose name a Series
2002-1 Note is registered in the Note Register.

          "NOTICE OF INCREASE" means the notice presented by the Issuer to the
Deal Agent, Master Servicer and Trustee to request a Notes Increase.

          "NPA COSTS" means at any time, the Breakage and Other Costs as defined
in the Note Purchase Agreement.

          "OVERDUE INTEREST" means, as of any Payment Date, the amount, if any,
by which Monthly Interest in respect of all prior Payment Dates exceeds the
amount paid to Noteholders on such prior Payment Dates, together with interest
thereon for each Accrual Period at the rate of the Bank Base Rate plus 2%.

          "PAYMENT DATE" means the 13th day of each calendar month, or, if such
13th day is not a Business Day, the next succeeding Business Day, commencing in
September 2002.

          "PERFORMANCE GUARANTY" means the performance guaranty dated as of
August 29, 2002 made by Performance Guarantor in favor of the Trustee.

          "PERMITTED ENCUMBRANCE" with respect to any Series 2002-1 Pledged Loan
has the meaning assigned to that term under the Purchase Agreement pursuant to
which such Loan is sold to the Depositor.

          "POTENTIAL AMORTIZATION EVENT" means an event which, but for the lapse
of time or the giving of notice or both, would constitute an Amortization Event.

          "POTENTIAL EVENT OF DEFAULT" means an event which, but for the lapse
of time or the giving of notice or both, would constitute an Event of Default.

                                       13
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          "POTENTIAL SERVICER DEFAULT" means an event which, but for the lapse
of time or the giving of notice or both, would constitute a Servicer Default.

          "PRINCIPAL DISTRIBUTION AMOUNT" means for any Payment Date an amount
equal to the Borrowing Base Shortfall as of the last day of the preceding Due
Period less the amount by which the Borrowing Base is increased on such Payment
Date.

          "PRIORITY OF PAYMENTS" means the application of Available Funds in
accordance with Section 6.01.

          "PROGRAM FEES" means with respect to any Class, the program fees
described in the Fee Letter for that Class.

          "PURCHASE AGREEMENT" means a Master Loan Purchase Agreement between a
Seller and the Depositor pursuant to which the Seller sells Loans to the
Depositor.

          "PURCHASERS" has the meaning assigned to that term in the Note
Purchase Agreement.

          "QUALIFIED HEDGE PROVIDER" means an entity which provides a Hedge
Agreement and which provider has a long term unsecured debt rating of at least A
from each of Moody's and S&P and a short-term unsecured debt rating of at least
A-1 from S&P and P-1 from Moody's.

          "QUALIFIED SUBSTITUTE LOAN" means a substitute Series 2002-1 Pledged
Loan that is an Eligible Loan on the applicable date of substitution and that on
such date of substitution has a coupon rate not less than the coupon rate of the
substituted Pledged Loan.

          "RATING AGENCY" means each of Fitch, S&P or Moody's as appropriate and
their respective successors in interest.

          "RATING AGENCY CONDITION" means, with respect to Series 2002-1, the
written consent of the Deal Agent.

          "RECORD DATE" means as to any Payment Date the last day of the
preceding Due Period.

          "RELEASE DATE" means the date on which Series 2002-1 Pledged Loans are
released from the Lien of this Supplement.

          "RELEASE PRICE" means an amount equal to the outstanding Loan Balance
of the Series 2002-1 Pledged Loan as of the close of business on the Due Date
immediately preceding the Payment Date on which the release is to be made, plus
accrued and unpaid interest thereon to the date of such release.

          "RELEASED SERIES 2002-1 PLEDGED LOAN" means any Loan which was
included as a Series 2002-1 Pledged Loan, but which has been released from the
Lien of this Supplement pursuant to the terms hereof.

                                       14
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          "REQUIRED CAP RATE" means, for any Accrual Period the Weighted Average
Series 2002-1 Loans Rate less 7.50%.

          "REQUIRED CLASS AGENTS" has the meaning assigned to that term in the
Note Purchase Agreement.

          "RESERVE ACCOUNT" means the account established pursuant to Section
6.06 of this Supplement.

          "RESERVE ACCOUNT EXCESS" has the meaning specified in Section 6.06 of
this Supplement.

          "RESERVE REQUIRED AMOUNT" as of the Closing Date means $8,403,837.12
and (i) thereafter so long as no Amortization Event has occurred, means as of
each Payment Date an amount equal to the greater of (x) 3.0% of the Series
2002-1 Aggregate Loan Balance as of the end of the prior Due Period and (y) the
Estimated Fees and (ii) from and after the first Payment Date following an
Amortization Event, the Reserve Required Amount shall be $0.

          "SELLER OF SERIES 2002-1 LOANS" means a Seller which has sold a Loan
to the Depositor and such Loan is a Series 2002-1 Pledged Loan.

          "SERIES 2002-1 ACCOUNT" means either of the Collection Account or the
Reserve Account and "SERIES 2002-1 ACCOUNTS" mean both of such accounts.

          "SERIES 2002-1 ADJUSTED LOAN BALANCE" means the Series 2002-1
Aggregate Loan Balance minus the sum of (i) the Loan Balances of any Series
2002-1 Pledged Loans which are Defaulted Loans, (ii) the Loan Balances of any
Series 2002-1 Pledged Loans which are Delinquent Loans on the last day of the
immediately preceding Due Period, (iii) the Loan Balances of any Series 2002-1
Pledged Loans which are Defective Loans and (iv) the Loan Balances of any Series
2002-1 Pledged Loans which are Deferred Loans.

          "SERIES 2002-1 AGGREGATE LOAN BALANCE" means, as of any time, the sum
of the Loan Balances for the Series 2002-1 Pledged Loans.

          "SERIES 2002-1 COLLATERAL" has the meaning specified in the Granting
Clause of this Supplement.

          "SERIES 2002-1 COLLECTIONS" means Collections, as defined in the
Agreement, with respect to all Series 2002-1 Pledged Loans.

          "SERIES 2002-1 DOCUMENTS" means the Series 2002-1 Notes, this
Supplement, the Note Purchase Agreement and the Fee Letters.

          "SERIES 2002-1 INTEREST COLLECTIONS" means Collections on the Series
2002-1 Pledged Loans which are allocable to interest on such Loans in accordance
with the terms thereof.

                                       15
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          "SERIES 2002-1 LOAN POOL" means all Loans identified in the Series
2002-1 Loan Schedule.

          "SERIES 2002-1 LOAN SCHEDULE" means a Loan Schedule, as defined in the
Agreement, containing information about the Series 2002-1 Pledged Loans, which
Loan Schedule is as delivered by the Issuer to the Collateral Agent as of the
Closing Date and as amended each month by delivery of an amendment describing
the Series 2002-1 Pledged Loans added and released.

          "SERIES 2002-1 NOTES" has the meaning specified in Section 1.01 of
this Supplement.

          "SERIES 2002-1 PLEDGED ASSETS" with respect to each Series 2002-1
Pledged Loan, means the related "Pool Assets" as defined in the Pool Purchase
Agreement.

          "SERIES 2002-1 PLEDGED LOANS" means the Initial Series 2002-1 Pledged
Loans and any Additional 2002-1 Pledged Loans, but excluding any Released Series
2002-1 Pledged Loans.

          "SERIES 2002-1 POOL PURCHASE SUPPLEMENT" means the Series 2002-1
Supplement to the Pool Purchase Agreement which supplement is dated as of August
29, 2002 and is by and between the Depositor and the Issuer and provides for the
transfer of the Series 2002-1 Pledged Loans from the Depositor to the Issuer.

          "SERIES 2002-1 PURCHASE SUPPLEMENTS" means each supplement to a
Purchase Agreement pursuant to which Series 2002-1 Pledged Loans are transferred
from the respective Seller to the Depositor.

          "SETTLEMENT STATEMENT" means the information furnished by the Master
Servicer to the Trustee for distribution to the Noteholders pursuant to
Section 8.01 of this Supplement.

          "SINGLE DEVELOPMENT EXCESS AMOUNT" means, at any time, the amount by
which (i) the sum of the Loan Balances for all Series 2002-1 Pledged Loans which
are Loans secured by Liens on Timeshare Properties in any one Resort exceeds
(ii) fifteen percent (15%) of the Series 2002-1 Adjusted Loan Balance.

          "SUBSTITUTION ADJUSTMENT AMOUNT" has the meaning specified in the
Series 2002-1 Pool Purchase Supplement.

          "SUPPLEMENT" means this Series 2002-1 Supplement as amended from time
to time.

          "SUPPLEMENTAL GRANT" means, with respect to any Additional 2002-1
Pledged Loans Granted as provided in Section 3.5 of the Agreement, a
Supplemental Grant substantially in the form of Exhibit A hereto which shall be
accompanied by an amendment which amends the Series 2002-1 Loan Schedule listing
such Loans and which shall be deemed to be incorporated into and made a part of
this Supplement.

                                       16
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          "THREE MONTH DEFAULT PERCENTAGE" means (i) with respect to the
September 2002 Payment Date the Default Percentage for the August 2002 Due
Period, (ii) with respect to the October 2002 Payment Date, (a) the sum of the
Default Percentage for the August 2002 Due Period plus the Default Percentage
for the September 2002 Due Period divided by (b) two; (iii) with respect to the
November Payment Date, (a) the sum of the Default Percentage for the August 2002
Due Period plus the Default Percentage for the September 2002 Due Period, plus
the Default Percentage for the October 2002 Due Period divided by (b) three; and
(iv) for the December 2002 Payment Date and each Payment Date thereafter, the
sum of the Default Percentages for each of the three immediately preceding Due
Periods divided by three.

          "THREE MONTH ROLLING AVERAGE DELINQUENCY RATIO" means (i) with respect
to the September 2002 Payment Date the Delinquency Ratio for the August 2002 Due
Period; (ii) with respect to the October 2002 Payment Date, (a) the sum of the
Delinquency Ratio for the August 2002 Due Period plus the Delinquency Ratio for
the September 2002 Due Period divided by (b) two; (iii) with respect to the
November Payment Date, (a) the sum of the Delinquency Ratio for the August Due
Period plus the Delinquency Ratio for the September Due Period, plus the
Delinquency Ratio for the October Due Period divided by (b) three; and (iv) for
the December 2002 Payment Date and each Payment Date thereafter, the sum of the
Delinquency Ratio for each of the three immediately preceding Due Periods
divided by three.

          "TRANSITION PERIOD" means the period from the date a Seller acquires
an organization, facility or program from an unrelated entity to the date on
which the Seller has fully converted the origination and servicing of Loans
related to such organization, facility or program to the Seller's Credit
Standards and Collection Policies and such Loans are originated using the forms
and documents of the Seller.

          "TRANSITION PERIOD EXCESS AMOUNT" means, at any time, an amount equal
to the Loan Balances of all Series 2002-1 Loans which are Acquired Portfolio
Loans (including, for such purposes, Loans acquired from Kona) and for which the
Transition Period has extended beyond 120 days and the Transition Period has not
been completed.

          "TRENDWEST LOANS" means Series 2002-1 Pledged Loans which were sold to
the Depositor under the terms of the Master Loan Purchase Agreement dated as of
August 29, 2002 between Trendwest and the Depositor and the Series 2002-1
Purchase Supplement thereto and transferred to the Issuer under the terms of the
Pool Purchase Agreement.

          "TRUSTEE" means Wachovia Bank, National Association, or its successor
in interest, or any successor trustee appointed as provided in the Agreement.

          "WEIGHTED AVERAGE SERIES 2002-1 LOANS RATE" means as of the last day
of any Due Period, the weighted average of the Contract Rates for all Series
2002-1 Pledged Loans as of such date.

          "WORLDMARK" means WorldMark, The Club, a California non-profit mutual
benefit corporation, and its successors in interest.

                                       17
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          Section 2.02. OTHER DEFINITIONAL PROVISIONS.

          (a)  All terms defined in this Supplement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant thereto unless otherwise defined therein.

          (b)  As used herein and in any certificate or other document made or
delivered pursuant hereto or thereto, accounting terms not defined in Section
2.01 or in the Agreement and accounting terms partly defined in Section 2.01 or
in the Agreement, to the extent not defined, shall have the respective meanings
given to them under generally accepted accounting principles. To the extent that
the definitions of accounting terms herein are inconsistent with the meanings of
such terms under generally accepted accounting principles, the definitions
contained herein shall control.

          (c)  The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Supplement shall refer to this Supplement as a whole
and not to any particular provision of this Supplement; and Article, Section,
subsection, Schedule and Exhibit references contained in this Supplement are
references to Articles, Sections, subsections, Schedules and Exhibits in or to
this Supplement unless otherwise specified.

                                   ARTICLE III

                             SERVICING COMPENSATION

          Section 3.01. SERVICING COMPENSATION. As compensation for its
servicing activities with respect to the Series 2002-1 Pledged Loans, the Master
Servicer shall be entitled to receive the Monthly Master Servicer Fee which
shall be paid to the Master Servicer pursuant to Section 6.01 of this
Supplement. On the first Payment Date, the Monthly Master Servicer Fee shall be
$7,781.33.

                                   ARTICLE IV

                             THE SERIES 2002-1 NOTES

          Section 4.01. FORMS GENERALLY. The Series 2002-1 Notes and the
Trustee's or Authentication Agent's certificate of authentication thereon (the
"CERTIFICATE OF AUTHENTICATION") shall be in substantially the forms set forth
as Exhibit B to this Supplement, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by the Agreement
and this Supplement, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon, as may,
consistently herewith, be determined by the Authorized Officers of the Issuer
executing such Series 2002-1 Notes as evidenced by their execution of such
Series 2002-1 Notes. Any portion of the text of any Note may be set forth on the
reverse or subsequent pages thereof, with an appropriate reference thereto on
the face of the Series 2002-1 Note.

          Each Note shall have a grid attached to it on which there shall be
recorded the initial Notes Principal Amount, each Notes Increase for that Note
and all principal payments made on that Note; PROVIDED, that such amounts may
instead be recorded in the Purchaser's or

                                       18
<Page>

Class Agent's records and the failure to make such recordings shall not affect
the obligations of the Issuer hereunder or under such Note.

          One Note shall be issued for each Class and be registered in the name
of the Class Agent for that Class as set forth in Exhibit C to this Supplement.

          Section 4.02. AUTHORIZED AMOUNT; CONDITIONS TO INITIAL ISSUANCE. (a)
The Initial Notes Principal Amount shall be $232,506,160.43. The Notes Principal
Amount may be increased from time to time as provided in Section 4.07 of this
Supplement; provided, however, that the Notes Principal Amount shall at no time
exceed the then effective Facility Limit. The Initial Notes Principal Amount of
the Note issued to each Class shall be as set forth in Exhibit C. Any Notes
Increase shall be allocated pro rata to each Note on the basis of the Initial
Notes Principal Amount, except that if any Note is then subject to a Liquidity
Reduction Amortization Period, such Note shall not be included in calculating
the pro rata allocation of the Notes Increase.

          (b)  The following shall be conditions to the issuance of the Series
2002-1 Notes:

               (i)    There shall have been delivered to the Trustee a
          Performance Guaranty under which the Performance Guarantor will
          guarantee to the Depositor, the Issuer, the Trustee and the Collateral
          Agent on behalf of all holders of Notes issued under the Agreement,
          the full and punctual payment and performance of all covenants,
          agreements, terms, conditions and other obligations to be performed
          and observed by each of FAC, as Seller and Master Servicer, EFI and
          Trendwest under and pursuant to the Agreement and this Series
          Supplement and all amounts related to the enforcement of the
          Performance Guaranty;

               (ii)   The Issuer shall enter into and Grant to the Trustee the
          Hedge Agreement with terms described in Section 6.07;

               (iii) The premium due for the Hedge Agreement as of the Closing
          Date shall have been paid as of the Closing Date;

               (iv)  On or immediately prior to the Closing Date the Custodian
          has possession of each original Series 2002-1 Pledged Loan and the
          related Loan File and has acknowledged to the Trustee and the Deal
          Agent such receipt and its undertaking to hold each such original
          Series 2002-1 Pledged Loan and the related Loan File for purposes of
          perfection of the Collateral Agent's interests in such original Series
          2002-1 Pledged Loans and the related Loan File; provided that the fact
          that any document not required to be in its respective Loan File
          pursuant to the applicable Purchase Agreement is not in the possession
          of the Custodian in its respective Loan File does not constitute a
          failure to satisfy this condition;

               (v)    The Issuer shall have delivered the Series 2002-1 Loan
          Schedule to the Collateral Agent and each of the Initial Series 2002-1
          Pledged Loans listed on

                                       19
<Page>

          such Loan Schedule shall be Loans sold by a Seller to the Depositor
          under a Purchase Agreement and Series 2002-1 Purchase Supplement;

               (vi)   On the Closing Date, the Initial Notes Principal Balance
          shall not exceed the Borrowing Base which shall for this purpose be
          calculated by the Master Servicer as of the Initial Cut-Off Date; and

               (vii)  Any additional conditions set forth in Section 3.3 of the
          Note Purchase Agreement shall have been satisfied.

          Section 4.03. PRINCIPAL, INTEREST AND NPA COSTS. (a) PRINCIPAL. Each
Note shall be issued on the Closing Date and shall have a Maturity Date of
August 15, 2005.

          Each Note shall be subject to prepayment in whole or in part as
required or permitted by the terms of this Supplement.

          (b)  INTEREST. Interest on each Note shall be due and payable on each
Payment Date in the amount of the Notes Interest calculated for that Note for
that Payment Date. On the Determination Date prior to each Payment Date, the
Deal Agent shall provide written notice to the Issuer, the Master Servicer and
the Trustee of the aggregate amount of Notes Interest to be paid on such Payment
Date on all Notes and the components used in calculating the Notes Interest
including the amount of Carrying Costs, Program Fees and Liquidity Fees for each
Class for such Payment Date.

          (c)  NPA COSTS. NPA Costs shall be due and payable to each Class Agent
on each Payment Date. On the Determination Date prior to each Payment Date, the
Deal Agent shall provide written notice to Issuer, the Master Servicer and the
Trustee of the aggregate amount of NPA Costs due on such Payment Date and the
amount due to each Class.

          Section 4.04. NONRECOURSE TO THE ISSUER. The Series 2002-1 Notes are
limited obligations of the Issuer payable only from and to the extent of the
Series 2002-1 Collateral. The Holders of the Notes shall have recourse to the
Issuer only to the extent of the Series 2002-1 Collateral, and to the extent
such Series 2002-1 Collateral is not sufficient to pay the Series 2002-1 Notes
and the Notes Interest thereon in full and all other obligations of the Issuer
under this Series 2002-1 Supplement and the other Series 2002-1 Documents, the
Holders of the Series 2002-1 Notes and holders of other obligations payable from
the Series 2002-1 Collateral shall have no rights in any other assets which the
Issuer may have including, but not limited to any assets of the Issuer which may
be Granted to secure other obligations. To the extent any Noteholder is deemed
to have any interest in any assets of the Issuer which assets have been Granted
to secure other obligations such Noteholder agrees that its interest in those
assets is subordinated to claims or rights of such other debtholders with
respect to those assets. Further such Noteholders agree that such agreement
constitutes a subordination agreement for purposes of Section 510(a) of the
Bankruptcy Code.

          Section 4.05. DATING OF THE NOTES. The Series 2002-1 Notes shall be
executed and authenticated as provided in the Agreement.

                                       20
<Page>

          Each Series 2002-1 Note authenticated and delivered by the Trustee or
the Authentication Agent to or upon Issuer Order on the Closing Date shall be
dated as of the Closing Date. All other Series 2002-1 Notes that are
authenticated after the Closing Date for any other purpose under this Agreement
shall be dated the date of their authentication.

          Notes issued upon transfer, exchange or replacement of other Series
2002-1 Notes shall represent the outstanding principal amount of the Notes so
transferred, exchanged or replaced. If any Series 2002-1 Note is divided into
more than one Series 2002-1 Note in accordance with this Article IV the
aggregate principal amount of the Series 2002-1 Notes delivered in exchange
shall, in the aggregate be equal to the principal amount of the divided Series
2002-1 Note.

          Section 4.06. PAYMENTS ON THE SERIES 2002-1 NOTES; PAYMENT OF NPA
COSTS.

          (a)  The Notes Interest calculated for each Payment Date will be due
and payable on that Payment Date.

          (b)  To the extent of Available Funds distributed as provided in
provision SIXTH of Section 6.01, principal of the Series 2002-1 Notes will be
subject to mandatory prepayment on each Payment Date in the amount of the
Monthly Principal. Except with respect to any Notes which are subject to a
Liquidity Reduction Amortization Period, all payments of principal on the Notes
shall be made pro rata based on the outstanding principal amount of the Notes.
All outstanding principal of the Notes (unless sooner paid) will be due and
payable on the Maturity Date.

          (c)  As a condition to the payment of principal of and interest on any
Series 2002-1 Note without the imposition of U. S. withholding tax, the Issuer
shall require certification acceptable to the Trustee to enable the Issuer, the
Trustee or any Paying Agent to determine their duties and liabilities with
respect to any taxes or other charges that they may be required to deduct or
withhold from payments in respect of such Note under any present or future law
or regulation of the United States or any present or future law or regulation of
any political subdivision thereof or taxing authority therein or to comply with
any reporting or other requirement under any such law or regulation.

          (d)  Payments in respect of interest on and principal of and any other
amount payable on or in respect of any Notes including NPA Costs shall be made
on each Payment Date (i) by wire transfer in immediately available funds sent by
the Trustee on or prior to 11:00 a.m. New York City time on the Payment Date
with respect to any Note to a United States dollar account specified for such
Note in the Note Register and in accordance with wire transfer instructions
received by the Trustee on or before the Record Date applicable to such Payment
Date or, with respect to the first Payment Date, specified on the Closing Date
or, (ii) if no wire transfer instructions are received by a Paying Agent, by a
U. S. dollar check drawn on a United States bank and delivered by first-class
mail, postage prepaid to each Holder at the address shown in the Note Register.

          Section 4.07. INCREASES IN NOTES PRINCIPAL AMOUNT. The Noteholders
agree, by acceptance of the Notes that the Issuer may from time to time by
irrevocable written notice

                                       21
<Page>

substantially in the form attached to the Note Purchase Agreement given to the
Deal Agent, the Trustee and the Master Servicer and subject to the terms and
conditions of this Section 4.07, request that the Series 2002-1 Noteholders on
the following Payment Date fund an increase in the outstanding principal balance
of the Series 2002-1 Notes in the aggregate amount specified in the notice;
provided that, with respect to any Notes Increase related to the initial
purchase of Loans from a Seller, such Note Increase may occur on any Business
Day whether or not such day is a Payment Date. If the terms and conditions to
the Note Increase set forth in this Section 4.07 and in the Note Purchase
Agreement are satisfied or waived, then the Noteholders shall fund an increase
by payment, in same day funds, to the Issuer of the amount of such increase in
accordance with the payment instructions specified in the Notice of Increase. In
addition to conditions set forth in the Note Purchase Agreement, the following
shall be conditions to each Note Increase:

          (a)  The Issuer and the Master Servicer shall have complied in all
material respects with all of their respective covenants and agreements
contained in the Agreement, this Supplement and the Note Purchase Agreement.

          (b)  No Amortization Event, Event of Default, Potential Amortization
Event or Potential Event of Default shall have occurred and be continuing.

          (c)  At least two (2) Business Days preceding the proposed Note
Increase Date, the Issuer shall have delivered to the Deal Agent, the Master
Servicer and the Trustee an electronic copy of a "Notice of Increase" in
substantially the form of Exhibit __ to the Note Purchase Agreement.

          (d)  After giving effect to the funding on such proposed Note Increase
Date, the Notes Principal Amount will not exceed the Borrowing Base; provided,
however, that, for such purposes, if the Cendant Ratings Requirement is not met
as of the Notes Increase Date, the Borrowing Base, as it was calculated on the
last day of the preceding Due Date, shall be reduced to remove from the
Borrowing Base the Loan Balances of all Series 2002-1 Pledged Loans which are
Green Loans.

          (e)  After giving effect to the funding on such proposed Note Increase
Date, the Notes Principal Amount will not exceed the Facility Limit.

          (f)  After giving effect to the funding on such proposed Note Increase
Date and the deposit of Available Funds, the amount in the Reserve Account will
be equal to the Reserve Required Amount.

          (g)  The Hedge Agreement shall have been adjusted, if required, so
that the notional amount is equal to 90% of the Notes Principal Amount after
giving effect to such Notes Increase and the amortization schedule on the Hedge
Agreement has been adjusted in accordance with a schedule prepared by the Master
Servicer and by the Deal Agent.

          Section 4.08. REDUCTION OF THE FACILITY LIMIT. In accordance with the
Note Purchase Agreement, the Issuer may, upon at least five Business Days'
written notice to the Deal Agent reduce, in part, the Facility Limit to (but not
below) the Notes Principal Amount. Any such reduction in the Facility Limit
shall be made pro rata to each of the Classes and in the

                                       22
<Page>

aggregate for a reduction of not less than $20 million and in increments of
$1 million in excess thereof.

          Section 4.09. INCREASE OF THE FACILITY LIMIT.

          (a)  So long as no Amortization Event shall have occurred and be
continuing, the Issuer may, on any Business Day, by written notice to the Deal
Agent request an increase in the Facility Limit. The written notice to the Deal
Agent shall specify:

                      (i)  the amount of the requested increase in the Facility
          Limit; and

                      (ii) the date on which such increase is proposed to occur.

          (b)  Any increase in the Facility Limit shall occur only if approved
by each of the Conduits and Alternate Investors as provided in the Note Purchase
Agreement and shall be evidenced by a notice from the Issuer and the Deal Agent
delivered to the Trustee which shall state the increased Facility Limit and the
date on which such increase shall be effective.

          Section 4.10. REPAYMENT OBLIGATION. (a) On any Payment Date the Issuer
shall be obligated to prepay the Notes in an amount determined in a written
notice from the Deal Agent. The Deal Agent may, or at the direction of the
Majority Facility Investors shall, provide the Issuer with such written notice
of such prepayment obligation, and shall specify that such prepayment be made
from the proceeds of a sale of an additional Series which additional Series will
be secured by and payable from some or all of the assets then pledged as Series
2002-1 Collateral. Upon receipt of such notice, the Issuer shall use its
reasonable best efforts to issue and sell an additional Series and use the
proceeds to prepay the Series 2002-1 Notes or a portion thereof in accordance
with the notice received from the Deal Agent, and upon the issuance of such new
Series and the repayment of the Series 2002-1 Notes in the amounts set forth in
the Deal Agent's notice, release Series 2002-1 Pledged Loans and related Series
2002-1 Pledged Assets from the Lien of this Supplement and Grant such Loans and
related assets to secure the new Series, provided, that such sale of Notes and
prepayment shall not be required or permitted unless the following conditions
are met: (i) the Deal Agent shall provide the Issuer with a letter evidencing
the intent of a Person to enter into a purchase agreement or to arrange for the
purchase or placement of the new Series (such a letter, a "Letter of Intent"),
(ii) Cendant shall fail to exercise or waive the right of first refusal (as
described in subsection (b) below) to arrange for the purchase or placement of a
new Series by an alternative third party, (iii) after giving effect to such
prepayment and release of Series 2002-1 Collateral, no Borrowing Base Shortfall
shall exist and no Amortization Event or Event of Default shall exist, (iv) each
of the Issuer and the Master Servicer shall have delivered to the Deal Agent a
certificate to the effect that the Series 2002-1 Pledged Loans to be released
from the Lien of this Supplement were not selected in a manner involving any
adverse selection procedures and that the release of such Loans would not
reasonably be expected to cause a Potential Amortization Event or an
Amortization Event, and (v) the proceeds of the sale of the new Series shall be
adequate to pay all amounts required to be paid under this Section 4.10. The
proceeds of any such sale shall be deposited into the Collection Account and
used by the Trustee, at the direction of the Master Servicer, to prepay
principal on the Series 2002-1 Notes in the amount directed by the Master
Servicer which shall

                                       23
<Page>

be at least equal to the amount required to be paid in accordance with the
written notice described in the first sentence of this paragraph.

          (b)  Simultaneously with the delivery of the notice of prepayment
obligation described in subsection (a) immediately above, the Deal Agent shall
deliver a notice to Cendant (such notice, a "Purchase Notice") containing (i)
the amount of the principal prepayment being required by the Deal Agent, (ii)
the identity of the Person providing the Letter of Intent, along with a copy of
such Letter of Intent and (iii) other material terms and conditions of the
proposed transaction. Within 60 calendar days after receipt of such notice, or
such lesser amount of time as Cendant may agree to in writing, Cendant may elect
to locate an alternative Person to purchase or place the additional Series
provided, that, Cendant shall have no right to acquire the additional Series or
the Loans or Pledged Assets for its own account. If Cendant does not elect to
locate an alternative purchaser or placement agent, such new Series shall be
sold in accordance with the terms provided in the Purchase Notice, provided,
that, unless waived by Cendant, any such transaction must be made for the
consideration and upon the terms and conditions set forth in the Purchase Notice
and in no event will the terms and conditions of the transaction be less
favorable to the Issuer than the terms, taken as a whole, stated in such
Purchase Notice. If the transaction is not consummated pursuant to the Letter of
Intent within 90 calendar days of the expiration of the above referenced 60 day
period, or, if earlier, the waiver by Cendant of its right of first refusal, the
prepayment rights and sale obligations provided under subsection (a) above shall
cease and the new Series shall not be sold unless first reoffered to Cendant in
accordance herewith.

          (c)  Upon the sale of a new Series and prepayment of the Notes in
accordance with subsections (a) and (b) immediately above, the Issuer shall
terminate the existing Hedge Agreement and, if any Series 2002-1 Notes remain
outstanding, replace it with a new Hedge Agreement in a notional amount equal to
90% of the Series 2002-1 Notes Principal Amount after the sale of the new Series
and the application of the proceeds. Any amounts received by the Issuer upon the
termination to the extent not used to acquire a new Hedge Agreement, shall be
deposited into the Collection Account. Such new Hedge Agreement shall have all
of the terms described in Section 6.07.

          (d)  If, after the date of this Supplement, there occurs a change in
generally accepted accounting principles in the United States and as a result
the terms of this Section 4.10, in the reasonable belief of the Issuer, may
cause an adverse change in accounting treatment with respect to the transfer of
the Series 2002-1 Pledged Loans from the Seller or Sellers thereof to the
Depositor, then the terms of this Section 4.10 may be amended by the parties to
this Supplement to the extent appropriate to preserve such accounting treatment.
If the Issuer requests that the Master Servicer, the Trustee and the Collateral
Agent enter into such amendment, it shall be deemed to be an amendment made
under the terms of and subject to the provisions of Section 13.01 of the
Agreement.

          Section 4.11. TRANSFER RESTRICTIONS.

          (a)  The Series 2002-1 Notes have not been registered under the
Securities Act or any state securities law. Neither the Issuer nor the Trustee
nor any other Person is obligated to register the Series 2002-1 Notes under the
Securities Act or any other securities or "Blue Sky"

                                       24
<Page>

laws or to take any other action not otherwise required under the Agreement or
this Supplement to permit the transfer of the Series 2002-1 Notes without
registration.

          (b)  No transfer of the Series 2002-1 Notes 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 4.11
(including the applicable legend to be set forth on the face of the Series
2002-1 Notes as provided in Exhibit B), in a transaction exempt from the
registration requirements of the Securities Act and applicable state securities
or "Blue Sky" laws (i) to a person who the transferor reasonably believes is a
"qualified institutional buyer" within the meaning thereof in Rule 144A (a
"QIB") and (B) that is aware that the resale or other transfer is being made in
reliance on Rule 144A.

          (c)  Each Holder of a Series 2002-1 Note, by its acceptance thereof,
will be deemed to have acknowledged, represented to and agreed with the Issuer
and, in the case of any transferee of a Purchaser, such Purchaser as follows:

               (i)    It understands that the Series 2002-1 Notes may be offered
          and may be resold by a Noteholder of a Series 2002-1 Note only to QIBs
          pursuant to Rule 144A.

               (ii)   It understands that the Series 2002-1 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 2002-1 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 Purchaser
          or any person representing the Issuer or a Purchaser has made any
          representation to it with respect to the Issuer or the offering or
          sale of any Series 2002-1 Notes. It has had access to such financial
          and other information concerning the Issuer, the Series 2002-1 Notes
          and the source of payment for the Series 2002-1 Notes as it has deemed
          necessary in connection with its decision to purchase the Series
          2002-1 Notes.

               (iv)   It is purchasing the Series 2002-1 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 2002-1 Notes, or any interest or participation therein, as
          described herein, in the Agreement and in the Note Purchase Agreement.

               (v)    It acknowledges that the Issuer, the Purchaser and others
          will rely on the truth and accuracy of the foregoing acknowledgments,
          representations and

                                       25
<Page>

          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.

               (vi)   It is not and is not acquiring the Series 2002-1 Notes by
          or on behalf of, or with "plan assets" of, (i) an employee benefit
          plan (as defined in Section 3(3) of the Employee Retirement Income
          Security Act of 1974, as amended ("ERISA"), whether or not subject to
          Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of the
          Internal Revenue Code of 1986, as amended (the "Code"); (iii) (an
          entity whose underlying assets include "plan assets" by reason of a
          Plan's investment in the Purchaser; or (iv) a person who is otherwise
          a "benefit plan investor," as defined in U.S. Department of Labor
          ("DOL") Regulation Section 2510.3-101 (a "Benefit Plan Investor"),
          including any insurance company general account or a governmental or
          foreign plan that is generally not subject to ERISA or Section 4975(e)
          of the Code.

               (vii)  With respect to any foreign purchaser claiming an
          exemption from United States income or withholding tax, that it has
          delivered to the Trustee a true and complete Form W-8 BEN, Form 1001
          or Form 4224, indicating such exemption or any other forms and
          documentation as may be sufficient under the applicable regulations
          for claiming such exemption.

          Except as provided in subsection (d) below, any transfer, resale,
pledge or other transfer of the Series 2002-1 Notes contrary to the restrictions
set forth above and in the Agreement shall be deemed void ab initio by the
Trustee.

          (d)  Notwithstanding anything to the contrary herein, each Conduit
(as defined in the Note Purchase Agreement), under the terms of its Liquidity
Agreement or the Note Purchase Agreement, may at any time sell or grant to one
or more Liquidity Providers party to the Liquidity Agreement or one or more
Alternative Investors party to the Note Purchase Agreement, participating
interests or security interests in the Series 2002-1 Notes provided that each
Liquidity Provider or Alternate Investor shall, by any such purchase be deemed
to have acknowledged and agreed to the provisions of subsection 4.11(c) hereof.

          Section 4.12. TAX TREATMENT. The Issuer has structured the Agreement
and this Supplement and the Notes with the intention that the Notes will qualify
under applicable tax law as indebtedness of the Issuer, and the Issuer and each
Noteholder by acceptance of its Note agree to treat the Notes (or beneficial
interest therein) as indebtedness for purposes of federal, state and local
income or franchise taxes or any other tax imposed on or measured by income.

                                   ARTICLE V

                  REPRESENTATIONS AND WARRANTIES OF THE ISSUER;
                  ASSIGNMENT OF REPRESENTATIONS AND WARRANTIES

          Section 5.01. REPRESENTATIONS AND WARRANTIES OF THE ISSUER. The Issuer
hereby represents and warrants to the Trustee, the Collateral Agent and the
Series 2002-1 Noteholders

                                       26
<Page>

on the date of execution of this Series Supplement, on the Initial Closing Date
and any date of an increase in the Facility Limit or a Notes Increase Date as
follows:

          (a)  PERFECTION OF SECURITY INTERESTS IN SERIES 2002-1 COLLATERAL.

               (i)    Payment of principal and interest on the Series 2002-1
     Notes and the prompt observance and performance by the Issuer of all of the
     terms and provisions of this Supplement are secured by the Series 2002-1
     Collateral. Upon the issuance of the Series 2002-1 Notes and at all times
     thereafter so long as any Series 2002-1 Notes are outstanding, this
     Supplement creates a security interest (as defined in the applicable UCC)
     in the Series 2002-1 Collateral in favor of the Collateral Agent for the
     benefit of the Trustee and the Series 2002-1 Noteholders to secure amounts
     payable under the Series 2002-1 Notes and the Series 2002-1 Documents,
     which security interest is perfected and prior to all other Liens (other
     than any Permitted Encumbrances) and is enforceable as such against all
     creditors of and purchasers from the Issuer; and

               (ii)   the Series 2002-1 Collateral constitutes either
     "accounts," "chattel paper," "instruments" or "general intangibles" within
     the meaning of the applicable UCC.

          (b)  ELIGIBLE LOANS. Each Series 2002-1 Pledged Loan, on the date on
which it becomes a Series 2002-1 Pledged Loan, is an Eligible Loan and is a Loan
sold by a Seller to the Depositor under a Purchase Agreement and Series 2002-1
Purchase Supplement.

          (c)  SERVICER DEFAULT. No Servicer Default has occurred and is
continuing.

          (d)  EVENTS OF DEFAULT; AMORTIZATION EVENTS. No Event of Default has
occurred and is continuing, no Amortization Event has occurred and is
continuing, no Potential Event of Default has occurred and is continuing and no
Potential Amortization Event has occurred and is continuing.

          Section 5.02. ASSIGNMENT OF REPRESENTATIONS AND WARRANTIES. The Issuer
hereby assigns to the Trustee its rights relating to the Series 2002-1 Pledged
Loans under the Pool Purchase Agreement including the rights assigned to the
Issuer by the Depositor of the Depositor's rights to payment due from the
related Seller for repurchases of Defective Loans (as such term is defined in
such Purchase Agreement) resulting from the breach of representations and
warranties under such Purchase Agreement.

          Section 5.03. ADDITION OF NEW SELLERS. Loans sold to the Depositor by
a New Seller and sold by the Depositor to the Issuer may be Granted as Series
2002-1 Pledged Loans under the terms of Section 7.01 provided that the following
conditions have been met:

               (i)    The New Seller has entered into a Purchase Agreement with
     the Depositor substantially in the form attached hereto as Exhibit F-1 but
     with such revisions as shall be necessary to accommodate the type of Loans
     and related assets of the New Seller;

               (ii)   The New Seller has entered into a Series 2002-1 Purchase
     Supplement substantially in the form attached hereto as Exhibit F-2 but
     with such

                                       27
<Page>

     revisions as shall be necessary to accommodate the type of Loans and
     related assets of the New Seller;

               (iii)  The Guaranty Agreement has been amended to included the
     New Seller as a party whose performance is guarantied or the Performance
     Guarantor shall have provided a new guaranty agreement under which the
     Performance Guarantor guaranties the performance of the New Seller;

               (iv)   One or more of the Custodial Agreements shall have been
     amended to provide that the New Seller may deliver Loan Files to the
     Custodian to be held for the benefit of the Collateral Agent;

               (v)    The New Seller shall have provided a Lockbox Agreement
     which provides for the receipt of Collections on the Series 2002-1 Pledged
     Loans sold by such Seller and the delivery of such Collections to the
     Collateral Agent;

               (vi)   The New Seller shall have provided to counsel for the Deal
     Agent copies of search reports certified by parties acceptable to counsel
     for the Deal Agent dated a date reasonably prior to the date on which the
     entity becomes a New Seller (A) listing all effective financing statements
     which name the New Seller (under its present name and any previous names)
     as debtor or seller and which are filed with respect to the New Seller in
     each relevant jurisdiction, together with copies of such financing
     statements (none of which shall cover any portion of the Series 2002-1
     Pledged Loans sold by such New Seller to the Depositor except as
     contemplated by the Facility Documents);

               (vii)  Copies of proper UCC financing statement amendments (Form
     UCC3), if any, necessary to terminate all security interests and other
     rights of any Person previously granted by the New Seller in the Loans of
     the New Seller to the extent such Loans are to become Series 2002-1 Pledged
     Loans and the related Pledged Assets;

               (viii) An Opinion of Counsel with respect to true sale and
     federal bankruptcy matters similar in substance to the opinions delivered
     to the Trustee on the Closing Date shall have been delivered to the
     Trustee, the Class Agents, the Purchasers with respect to sales of the
     Loans by the New Seller to the Depositor;

               (ix)   The Issuer shall have delivered to the Trustee and the
     Collateral Agent and the Deal Agent copies of UCC financing statements with
     respect to the sale of the Loans from the New Seller to the Depositor, from
     the Depositor to the Issuer and the Grant to the Collateral Agent together
     with Opinions of Counsel to the effect that such transfer or security
     interests have been perfected and are of a first priority;

               (x)    Each of the items described in provisions (i) through (ix)
     above shall have been reviewed by counsel to the Deal Agent and such
     counsel shall have notified the Deal Agent that such items are in the
     reasonable opinion of such counsel acceptable in form and substance to
     permit the addition of Loans of the New Seller; and

                                       28
<Page>

               (xi)   Either:

                      (A)   The New Seller shall have delivered to the Deal
          Agent and Bank of America, N.A. documentation which documentation
          shall, as to the method of calculating the information contained
          therein and the quality of the information provided, be subject to the
          approval of the Deal Agent and the Bank of America, N.A., which
          approval will not be unreasonably withheld and such documentation
          shall provide evidence that for a period of not less than five years
          immediately preceding the date on which the entity becomes a New
          Seller, the Extrapolated Cumulative Cancellation Rate is less than
          17%; or

                      (B)   the Deal Agent and Bank of America, N.A. have each
          delivered to the Issuer its written consent to the addition of the New
          Seller and the inclusion of Loans sold by such New Seller as Series
          2002-1 Pledged Loans.

                                   ARTICLE VI

                       PAYMENTS, SECURITY AND ALLOCATIONS

          Section 6.01. PRIORITY OF PAYMENTS.

          The Master Servicer shall apply, or by written instruction to the
Trustee shall cause the Trustee to apply on each Payment Date Available Funds
for that Payment Date on deposit in the Collection Account to make the following
payments and in the following order of priority:

               FIRST, to the Trustee in payment of the Monthly Trustee Fees and
          in reimbursement of the reasonable expenses of the Trustee under each
          of the Facility Documents to which the Trustee is a party, provided
          that such expenses relate to Series 2002-1; in the event of a Servicer
          Default and the replacement of the Master Servicer with the Trustee or
          a Successor Master Servicer, the actual costs and expenses of
          replacing the Master Servicer shall be permitted expenses of the
          Trustee; provided that such costs and expenses relate to Series
          2002-1;

               SECOND, if the Master Servicer is not Fairfield Acceptance
          Corporation-Nevada or an affiliate of Cendant, to the Master Servicer,
          in payment of the Monthly Master Servicer Fee and, whether or not
          Fairfield Acceptance Corporation-Nevada or another affiliate of
          Cendant is then the Master Servicer, to the Master Servicer in
          reimbursement of any unreimbursed Master Servicer Advances;

               THIRD, to the Hedge Provider under the Hedge Agreement, Net Hedge
          Payments;

               FOURTH, to each Noteholder, the Notes Interest for the current
          Payment Date and NPA Costs payable to such Noteholder to the extent
          due and payable and not included in the Monthly Interest and any
          Overdue Interest from prior periods (and interest thereon);

                                       29
<Page>

               FIFTH, if the Master Servicer is Fairfield Acceptance
          Corporation-Nevada or another affiliate of Cendant, to the Master
          Servicer, the Monthly Servicing Fee;

               SIXTH, to the Noteholders, the Monthly Principal for such Payment
          Date, as described in Section 6.02;

               SEVENTH, if the amount on deposit in the Reserve Account is less
          than the Required Reserve Amount, to the Reserve Account, all
          remaining Available Funds until the amount on deposit in the Reserve
          Account is equal to the Reserve Required Amount;

               EIGHTH, during a Liquidity Reduction Amortization Period, with
          respect to each Note to which a Liquidity Reduction Event has occurred
          the lesser of (i) the aggregate outstanding principal amount of such
          Note and (ii) such Notes' pro rata share of the remaining Available
          Funds; for such purposes the pro rata share shall be determined on the
          basis of the outstanding principal amounts of such Notes as of the
          dates their respective Liquidity Reduction Amortization Period
          commenced and the sum of the Notes Principal Amount of all Notes then
          in a Liquidity Reduction Amortization Period calculated as of the
          dates their respective Liquidity Reduction Amortization Periods
          commenced; and

               FINALLY, to the Issuer, any remaining amounts free and clear of
          the lien of this Supplement.

          Section 6.02. DETERMINATION OF MONTHLY PRINCIPAL. The amount of
Available Funds required to be distributed for the payment of principal on the
Notes on any Payment Date is the "MONTHLY PRINCIPAL" for that Payment Date and
shall be calculated as follows:

          (i)   so long as no Amortization Event has occurred and the Maturity
     Date has not occurred, the Monthly Principal for any Payment Date shall be
     an amount equal to the Principal Distribution Amount for that Payment Date;

          (ii)  on the Maturity Date of the Series 2002-1 Notes, the Monthly
     Principal for such Payment Date shall be the Notes Principal Amount; and

          (iii) if an Amortization Event has occurred or if the Liquidity
     Termination Date has occurred, then for each Payment Date after the
     occurrence of such Amortization Event or Liquidity Termination Date, the
     Monthly Principal shall be equal to the entire amount of the remaining
     Available Funds after making provision for the payments and distributions
     required under clauses FIRST through FIFTH in the Priority of Payments.

          Section 6.03. INFORMATION PROVIDED TO TRUSTEE. The Master Servicer
shall promptly provide the Trustee in writing with all information necessary to
enable the Trustee to make the payments and deposits required pursuant to
Section 6.01.

          Section 6.04. PAYMENTS. On each Payment Date, the Trustee, as Paying
Agent, shall distribute to the Holders the amounts due and payable under this
Supplement and the Notes. Such payments shall be made as provided in subsection
4.06(d) hereof.

                                       30
<Page>

          Section 6.05. COLLECTION ACCOUNT.

          (a)  COLLECTION ACCOUNT. The Trustee, for the benefit of the Series
2002-1 Noteholders, shall establish and maintain in the name of the Trustee, a
segregated account designated as the "Sierra Receivables Funding Company, LLC
Series 2002-1 Collection Account" bearing a designation clearly indicating that
the funds deposited therein are held for the benefit of the Noteholders pursuant
to this Supplement.

          (b)  WITHDRAWALS. The Trustee shall have the sole and exclusive right
to withdraw or order a transfer of funds from the Collection Account, in all
events in accordance with the terms and provisions of this Supplement and the
information most recently delivered to the Trustee pursuant to Section 8.01;
provided, however, that the Trustee shall be authorized to accept and act upon
instructions from the Master Servicer regarding withdrawals or transfers of
funds from the Collection Account, in all events in accordance with the
provisions of this Supplement and the information most recently delivered
pursuant to Section 8.01. In addition, notwithstanding anything in the foregoing
to the contrary, the Trustee shall be authorized to accept instructions from the
Master Servicer on a daily basis regarding withdrawals or order transfers of
funds from the Collection Account, to the extent such funds either (i) have been
mistakenly deposited into the Collection Account (including without limitation
funds representing Assessments or dues payable by Obligors to POAs or other
entities) or (ii) relate to items subsequently returned for insufficient funds
or as a result of stop payments. In the case of any withdrawal or transfer
pursuant to the foregoing sentence, the Master Servicer shall provide the
Trustee with notice of such withdrawal or transfer, together with reasonable
supporting details, on the next Servicer's Monthly Report to be delivered by the
Master Servicer following the date of such withdrawal or transfer (or in such
earlier written notice as may be required by the Trustee from the Master
Servicer from time to time). Notwithstanding anything therein to the contrary,
the Trustee shall be entitled to make withdrawals or order transfers of funds
from the Collection Account, in the amount of all reasonable and appropriate
out-of-pocket costs and expenses incurred by the Trustee in connection with any
misdirected funds described in clause (i) and (ii) of the second foregoing
sentence. Within two Business Days of receipt, the Master Servicer shall
transfer all Collections processed by the Master Servicer to the Trustee for
deposit into the Collection Account. The Trustee shall deposit or cause to be
deposited into the Collection Account upon receipt all amounts in respect of
releases of Series 2002-1 Pledged Loans by the Issuer. On each Payment Date, the
Trustee shall apply amounts in the Collection Account to make the payments and
disbursements described in this Supplement.

          (c)  ADMINISTRATION OF THE COLLECTION ACCOUNT. Funds in the Collection
Account shall, at the direction of the Issuer, at all times be invested in
Permitted Investments; provided, however, that all Permitted Investments shall
mature on or before the next Payment Date, in order to ensure that funds on
deposit therein will be available on such Payment Date. The Trustee shall
maintain or cause to be maintained possession of the negotiable instruments or
securities evidencing the Permitted Investments from the time of purchase
thereof until the time of sale or maturity. Subject to the restrictions set
forth in the first sentence of this paragraph, the Issuer shall instruct the
Trustee in writing regarding the investment of funds on deposit in the
Collection Account. All investment earnings on such funds shall be deemed to be
available to the Trustee for the uses specified in this Supplement. The Trustee
shall be fully protected in following the investment instructions of the Issuer,
and shall have no obligation for keeping the

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funds fully invested at all times or for making any investments other than in
accordance with such written investment instructions. If no investment
instructions are received from the Issuer, the Trustee is authorized to invest
the funds in Permitted Investments described in clause (v) of the definition
thereof. In no event shall the Trustee be liable for any investment losses
incurred in connection with the investment of funds on deposit in the Collection
Account by the Trustee pursuant to this Agreement.

          (d)  IRREVOCABLE DEPOSIT. Any deposit made into the Collection Account
hereunder shall, except as otherwise provided herein, be irrevocable and the
amount of such deposit and any money, instrument, investment property or other
property on deposit in or credited to such Account hereunder and all interest
thereon shall be held in trust by the Trustee and applied solely as provided
herein.

          (e)  SOURCE. All amounts delivered to the Trustee shall be accompanied
by information in reasonable detail and in writing specifying the source and
nature of the amounts.

          Section 6.06. RESERVE ACCOUNT.

          (a)  CREATION AND FUNDING OF THE RESERVE ACCOUNT. The Trustee shall
establish and maintain in the name of the Trustee, an Eligible Account
designated as the "Sierra Receivables Funding Company, LLC Series 2002-l Reserve
Account" bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Noteholders pursuant to this Supplement.
The Reserve Account shall be under the sole dominion and control of the Trustee;
however, if so directed by the Issuer, the Reserve Account may be an account in
the name of the Trustee opened at another financial institution. If, at any
time, the Reserve Account ceases to be an Eligible Account, the Trustee (or the
Master Servicer on its behalf) shall within ten (10) Business Days (or such
longer period, not to exceed thirty (30) calendar days, as to which the Deal
Agent may consent) establish a new Reserve Account as an Eligible Account and
shall transfer any property to such new Reserve Account. So long as the Trustee
is an Eligible Institution, the Reserve Account may be maintained with it in an
Eligible Account.

          On the Closing Date the Issuer shall deposit or shall cause to be
deposited into the Reserve Account the sum of $8,403,837.12 as the initial
Reserve Required Amount and thereafter on each Payment Date if the amount on
deposit in the Reserve Account is less than the Required Reserve Amount, a
deposit shall be made to the Reserve Account to the extent of funds available as
provided in provision SEVENTH of Section 6.01.

          (b)  TRANSFER TO COLLECTION ACCOUNT. On or prior to each Payment Date,
prior to the allocation of funds pursuant to Section 6.01 on such Payment Date,
the Master Servicer shall direct the Trustee to withdraw from the Reserve
Account and deposit into the Collection Account to be included as Available
Funds such amount, if any, as shall be equal to the lesser of (A) the amount of
cash or other immediately available funds on deposit in the Reserve Account on
such Payment Date and (B) the amount, if any, by which (y) the amounts required
to be applied pursuant to Section 6.01 provisions FIRST through SIXTH on such
Payment Date and for any preceding Payment Date (to the extent not previously
paid) exceed (z) the Available Funds for that Payment Date (calculated without
regard to any amounts to be transferred from

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the Reserve Account). The Trustee shall withdraw such funds from the Reserve
Account and deposit them in the Collection Account as directed by the Master
Servicer.

          (c)  RELEASE OF RESERVE ACCOUNT EXCESS. The Trustee shall have the
sole and exclusive right to withdraw or order a transfer of funds from the
Reserve Account, in all events in accordance with the terms and provisions of
this Section 6.06; PROVIDED, THAT the Trustee shall be authorized to transfer
funds from the Reserve Account to the Collection Account at the direction of the
Master Servicer as provided in subsection (b) above and at the direction of the
Deal Agent pursuant to subsection (d) below and to accept and act upon
instructions from the Master Servicer to release to the Issuer, free and clear
of the lien of this Supplement, on the first Business Day following each Payment
Date, an amount of funds held in the Reserve Account equal to the excess (if
any) on such Business Day (the "RESERVE ACCOUNT EXCESS") of the then outstanding
balance of the Reserve Account over the Reserve Required Amount in effect as of
the opening of business on such Business Day (after giving effect to all
transactions and fund transfers required to take place hereunder on the
immediately preceding Payment Date). The Master Servicer, as a condition of
causing the release of funds from the Reserve Account, shall simultaneously
provide the Trustee and the Deal Agent with a certificate of a Servicing Officer
as to the existence and size of any Reserve Account Excess to which the Issuer
is entitled.

          (d)  APPLICATION AFTER AMORTIZATION EVENT. Notwithstanding anything
contained in the foregoing subsections to the contrary, on the first
Determination Date after the occurrence of an Amortization Event, the Trustee,
acting at the direction of the Deal Agent, shall withdraw all funds on deposit
in the Reserve Account and deposit such amounts into the Collection Account to
be used solely for the purposes set forth in and in accordance with the Priority
of Payments.

          (e)  TERMINATION OF RESERVE ACCOUNT. Any funds remaining in the
Reserve Account after all Notes (including both principal and interest thereon)
have been paid in full and in cash and all other obligations of the Issuer under
the Series 2002-1 Documents have been paid in full and in cash shall be remitted
by the Trustee to the Issuer free and clear of the lien of this Supplement.

          (f)  ADMINISTRATION OF THE RESERVE ACCOUNT. Funds in the Reserve
Account shall be invested in Permitted Investments as directed by the Issuer;
provided, however, that all Permitted Investments shall mature on or before the
next Payment Date. All such Permitted Investments shall be held by the Trustee.
Subject to the restrictions set forth in the first sentence of this subsection
(f), the Issuer shall instruct the Trustee in writing regarding the investment
of funds on deposit in the Reserve Account. For purposes of determining the
availability of balances in Reserve Account for withdrawal pursuant to this
Section 6.06, all investment earnings on such funds shall be deemed to be
available under this Supplement for the uses specified in such section. The
Trustee shall be fully protected in following the investment instructions of the
Issuer, and shall have no obligation for keeping the funds fully invested at all
times or for making any investments other than in accordance with such written
investment instructions. If no investment instructions are received from the
Issuer, the Trustee is authorized to invest the funds in Permitted Investments
described in clause (v) of the definition thereof. In no event shall the Trustee
be liable for any investment losses incurred in connection with the

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<Page>

investment of funds on deposit in the Reserve Account by the Trustee pursuant to
this Supplement.

          (g)  DEPOSIT IRREVOCABLE. Any deposit made into the Reserve Account
hereunder shall, except as otherwise provided herein, be irrevocable and the
amount of such deposit and any money, instruments, investment property, or other
property credited to carried in, or deposited in the Reserve Account hereunder
and all interest thereon shall be held in trust by the Trustee and applied
solely as provided herein.

          Section 6.07. HEDGE AGREEMENT. The Issuer shall at all times, so long
as any Notes remain unpaid, provide a Hedge Agreement with the terms described
in this Section 6.07. When all Notes have been paid in full, the Issuer shall
terminate the Hedge Agreement. The Hedge Agreement shall meet the following
requirements:

          (a)  the Hedge Agreement shall provide an interest rate cap for a
notional amount equal to 90% of the Notes Principal Amount and such notional
amount shall amortize on a monthly basis for a term equal to the actual
amortization schedule of payments on the Series 2002-1 Pledged Loans assuming a
schedule of payments and prepayments mutually determined by the Master Servicer,
the Issuer, the Deal Agent and Bank of America, N.A. at such time (which
schedule shall be based upon the historical amortization experience of Loans
owned or serviced by the Master Servicer and/or its Affiliates);

          (b)  the Issuer shall, as of each Payment Date, cause the notional
amount of the Hedge Agreement to be adjusted to reflect any increase or decrease
in the Notes Principal Amount as of such Payment Date so that the adjusted
notional amount of the Hedge Agreement shall on each Payment Date be an amount
equal to 90% of the Notes Principal Amount; the Issuer shall also, as of each
Payment Date adjust the Hedge Agreement to reflect the Required Cap Rate, the
termination date and the amortization schedule following the addition and
release of Series 2002-1 Pledged Loans as of each Payment Date; any additional
Premium due for the adjustments to the interest rate cap shall be paid as a Net
Hedge Payment under Provision THIRD of Section 6.01;

          (c)  the Hedge Agreement shall have a termination date equal to the
final maturity date of the latest maturing Series 2002-1 Pledged Loans; and

          (d)  the Hedge Agreement shall provide for a payment by the Hedge
Provider to the Trustee for deposit into the Collection Account on each Payment
Date if for the related Accrual Period the LIBOR Rate was greater than the
Required Cap Rate.

          (e)  References in this Section 6.07 or otherwise in this Supplement
to a notional amount equal to 90% of the Notes Principal Amount shall allow for
rounding to the nearest $1,000.

          Section 6.08. REPLACEMENT OF HEDGE PROVIDER. The Issuer agrees that if
any Hedge Provider ceases to be a Qualified Hedge Provider, the Issuer shall
have five (5) days (x) to cause such Hedge Provider to assign its obligations
under the related Hedge Agreement to a new, Qualified Hedge Provider (or such
Hedge Provider shall have five (5) days to again become a Qualified Hedge
Provider) or (y) to obtain a substitute Hedge Agreement, together with the

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related Qualified Hedge Provider's acknowledgment of the Grant by the Issuer to
the Trustee of such Hedge Agreement.

                                   ARTICLE VII

                   ADDITION, RELEASE AND SUBSTITUTION OF LOANS

          Section 7.01. ADDITION OF SERIES 2002-1 COLLATERAL.

          (a)  TRANSFER OF ADDITIONAL LOANS. Subject to the limitations and
conditions specified in this Section 7.01, the Issuer may from time to time,
transfer additional Eligible Loans and related Series 2002-1 Pledged Assets to
the Collateral Agent for the benefit of the Trustee for the benefit of the
Series 2002-1 Noteholders and such Loans and related assets shall be included as
Series 2002-1 Collateral hereunder.

          (b)  The transfer of Additional 2002-1 Pledged Loans and the related
Series 2002-1 Pledged Assets shall be subject to the satisfaction of the
following conditions:

               (i)    at least two (2) Business Days preceding the proposed
               Addition Date, the Issuer shall have delivered to the Deal Agent
               a schedule of the Additional 2002-1 Pledged Loans to be
               transferred on such Addition Date and each of the Additional
               2002-1 Pledged Loans shall be a Loan sold by a Seller to the
               Depositor under a Purchase Agreement and Series 2002-1 Purchase
               Supplement;

               (ii)    the Issuer, the Master Servicer, the Trustee and the
               Collateral Agent shall execute a Supplemental Grant in
               substantially the form of Exhibit A to this Supplement and the
               Master Servicer shall have delivered a signed copy of such
               Supplemental Grant to the Collateral Agent;

               (iii)  the Liquidity Termination Date shall not have occurred and
               no Amortization Event, Servicer Default, Event of Default,
               Potential Amortization Event, Potential Servicer Default or
               Potential Event of Default shall have occurred and be continuing
               or would occur as a result of the addition of such Additional
               2002-1 Pledged Loans;

               (iv)   On or immediately prior to the Addition Date the Custodian
               has possession of each original Additional 2002-1 Pledged Loan
               and the related Loan File and has acknowledged to the Trustee and
               the Deal Agent such receipt and its undertaking to hold each such
               original Additional 2002-1 Pledged Loan and the related Loan File
               for purposes of perfection of the Collateral Agent's interests in
               such original Additional 2002-1 Pledged Loans and the related
               Loan File; provided that the fact that any document not required
               to be in its respective Loan File pursuant to the applicable
               Purchase Agreement is not in the possession of the Custodian in
               its respective Loan File does not constitute a failure to satisfy
               this condition;

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<Page>

               (v)    the Issuer shall have taken any actions necessary or
               advisable to maintain the Collateral Agent's perfected security
               interest in the Series 2002-1 Collateral (including in the
               Additional 2002-1 Pledged Loans) for the benefit of the Trustee
               for the benefit of the Noteholders;

               (vi)   each Additional 2002-1 Pledged Loan shall be an Eligible
               Loan;

               (vii)  if any of the Additional 2002-1 Pledged Loans are New
               Seller Loans, the conditions set forth in Section 5.03 of this
               Supplement have been satisfied with respect to the Seller of such
               Loans;

               (viii) if any of the Additional 2002-1 Pledged Loans are New
               Seller Loans and after the addition of such Loans, the Principal
               Balance of the Series 2002-1 Pledged Loans which are New Seller
               Loans sold by one New Seller to the Depositor would exceed 10% of
               the Series 2002-1 Adjusted Loan Balance, then the addition of
               such New Seller Loans shall be subject to the prior written
               consent of the Deal Agent and Bank of America, N.A.;

               (ix)   if any of the Additional 2002-1 Pledged Loans are New
               Seller Loans and after the addition of such Loans, the Principal
               Balance of all the Series 2002-1 Pledged Loans which are New
               Seller Loans is greater than 15% of the Series 2002-1 Adjusted
               Loan Balance, then the addition of such New Seller Loans shall be
               subject to the prior written consent of all Class Agents; and

               (x)    if any of the Additional 2002-1 Pledged Loans are Acquired
               Portfolio Loans and after the addition of such Loans, (a) the
               Principal Balance of all Series 2002-1 Pledged Loans which are
               Acquired Portfolio Loans acquired as part of one portfolio is
               less than 10% of the Series 2002-1 Adjusted Loan Balance, then
               the addition of such Loans shall be subject to the prior written
               consent of the Deal Agent and Bank of America, N.A. or (b) if the
               Principal Balance of all Series 2002-1 Pledged Loans which are
               Acquired Portfolio Loans acquired as part of one portfolio is 10%
               or more of the Series 2002-1 Adjusted Loan Balance, then the
               addition of such Loans shall be subject to the prior written
               consent of all Class Agents.

          (c)  In addition to the conditions set forth in (b) above, on the
first date on which Trendwest Loans are included in the Additional 2002-1
Pledged Loans and on the first date on which EFI Loans are included in the
Additional 2002-1 Pledged Loans, it shall be a condition to the addition of such
Additional 2002-1 Pledged Loans that the conditions set forth in Section
2(b)(iv) of the Series 2002-1 Pool Purchase Supplement be met to the
satisfaction of counsel to the Deal Agent.

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<Page>

          Section 7.02. RELEASE OF DEFECTIVE LOANS.

          (a)  OBLIGATION WITH RESPECT TO DEFECTIVE LOANS. If a Seller is
required to repurchase a Defective Loan under the terms of the applicable
Purchase Agreement and Series 2002-1 Purchase Supplement, the Issuer shall, on
the same Payment Date as the Seller is required to repurchase the Defective
Loan, be required either (i) to pay the Release Price of such Defective Loan and
obtain the release of the Defective Loan from the Lien of this Supplement or
(ii) substitute one or more Qualified Substitute Loans for such Series 2002-1
Pledged Loan as provided in subsection 7.02(c) and obtain the release of the
Defective Loan.

          (b)  PAYMENTS. The Issuer shall provide written notice to the Trustee
and the Collateral Agent of any release pursuant to subsection 7.02(a) not less
than two Business Days prior to the Payment Date on which such release is to be
effected, specifying the Defective Loan and the Release Price therefor. Upon the
release of a Defective Loan pursuant to subsection 7.02(a) the Issuer shall
deposit or cause to be deposited the Release Price in the Collection Account no
later than 12:00 noon, New York time, on the Payment Date on which such release
is made (the "Release Date").

          (c)  SUBSTITUTION. If the Issuer elects to substitute a Qualified
Substitute Loan or Qualified Substitute Loans for a Defective Loan pursuant to
this subsection 7.02(c), the Issuer shall Grant such Qualified Substitute Loan
in the same manner as other Additional 2002-1 Pledged Loans and shall include
such Qualified Substitute Loans in the Additional 2002-1 Pledged Loans described
in a Supplemental Grant. The Qualified Substitute Loan or Qualified Substitute
Loans will not be selected in a manner adverse to the Noteholders, and the
aggregate principal balance of the Qualified Substitute Loans will not be less
than the principal balance of the Defective Loans for which the substitution
occurs. In connection with the substitution for one or more Qualified Substitute
Loans for one or more Defective Loans, the Issuer shall deposit an amount, if
any, equal to the related Substitution Adjustment Amount in the Collection
Account on the date of substitution without any reimbursement therefor. The
Issuer shall cause the Master Servicer to amend the Series 2002-1 Loan Schedule
to reflect the removal of such Defective Loan and the substitution of the
Qualified Substitute Loan or Qualified Substitute Loans and the Issuer shall
cause the Master Servicer to deliver the amended Series 2002-1 Loan Schedule to
the Issuer and the Trustee and Collateral Agent.

          (d)  Upon each release of a Series 2002-1 Pledged Loan under this
Section 7.02, the Collateral Agent and the Trustee shall automatically and
without further action release, sell, transfer, assign, set over and otherwise
convey to the Issuer, without recourse, representation or warranty, all of the
Collateral Agent's and the Trustee's right, title and interest in and to such
Defective Loan and the Series 2002-1 Pledged Assets related thereto, all monies
due or to become due with respect thereto and all Collections with respect
thereto (including payments received from Obligors from and including the last
day of the Due Period next preceding the date of release) free and clear of the
lien of this Supplement. The Collateral Agent and the Trustee shall execute such
documents, releases and instruments of transfer or assignment and take such
other actions as shall reasonably be requested by the Issuer or Depositor to
effect the release of such Defective Loan and the related Series 2002-1 Pledged
Assets pursuant to this subsection 7.02. Promptly after the occurrence of a
Release Date and after the payment for and

                                       37
<Page>

release of or substitution for Defective Loans, the Issuer shall direct the
Master Servicer to delete such Defective Loans from the Series 2002-1 Loan
Schedule.

          (e)  The obligation of the Issuer to deposit the Release Price or
provide a Qualified Substitute Loan for any Defective Loan shall constitute the
sole remedy against the Issuer with respect to any breach of the representations
and warranties set forth in 5.01(b) of this Supplement or the representations of
the Seller assigned to the Trustee pursuant to Section 5.02.

          Section 7.03. RELEASE OF DEFAULTED LOANS. If any Series 2002-1 Pledged
Loan becomes a Defaulted Loan during any Due Period, the Issuer may obtain a
release of such Series 2002-1 Pledged Loan from the lien of this Supplement on
any Payment Date thereafter. To obtain such release the Issuer shall be required
to pay the Release Price of such Defaulted Loan to the Trustee for deposit into
the Collection Account. The Issuer shall provide written notice to the Trustee
and the Collateral Agent of any release pursuant to this Section 7.03 not less
than two Business Days prior to the Payment Date on which such release is to be
effected, specifying the Defaulted Loan and the Release Price therefor. The
Issuer shall pay the Release Price to the Trustee for deposit into the
Collection Account not later than 12:00 noon, New York City time, on the Payment
Date on which such release is made.

          Upon each release of a Series 2002-1 Pledged Loan under this Section
7.03, the Collateral Agent and the Trustee shall automatically and without
further action release, sell, transfer, assign, set over and otherwise convey to
the Issuer, without recourse, representation or warranty, all of the Collateral
Agent's and Trustee's right, title and interest in and to such Defaulted Loan
and the Series 2002-1 Pledged Assets related thereto, all monies due or to
become due with respect thereto and all Collections with respect thereto free
and clear of the Lien of this Supplement. The Collateral Agent and the Trustee
shall execute such documents, releases and instruments of transfer or assignment
and take such other actions as shall reasonably be requested by the Issuer to
effect the release of such Defaulted Loans and the related Series 2002-1 Pledged
Assets pursuant to this Section 7.03. Promptly after the occurrence of a Release
Date and after the payment for and release of a Defaulted Loan, in respect to
which the Release Price has been paid the Issuer shall direct the Master
Servicer to delete such Defaulted Loans from the Series 2002-1 Loan Schedule.

          Section 7.04. RELEASE UPON TRANSFER TO NEW SERIES. If a new Series is
issued as provided in Section 4.10 of this Supplement, the Collateral Agent and
the Trustee shall upon receipt by the Trustee of the proceeds of the sale of the
new Series in an amount agreed by the Issuer and the Deal Agent and the
satisfaction of the conditions set forth in the following paragraph, release
from the Lien of this Supplement those Series 2002-1 Pledged Loans and the
related Series 2002-1 Pledged Assets which are to be granted by the Issuer as
collateral for the new Series. For such purposes, the Deal Agent and the Issuer
shall agree upon and provide to the Collateral Agent and the Trustee a list of
the Series 2002-1 Pledged Loans which are to be released and shall direct the
Master Servicer to delete such Loans from the Series 2002-1 Pledged Loan
Schedule.

          In addition to receipt by the Trustee of the proceeds of the sale of a
new Series as provided in the preceding paragraph, the following conditions
shall be met before the Lien is released under this Section 7.04:

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<Page>

               (i)   After giving effect to such release, no Borrowing Base
          Shortfall shall exist and no Amortization Event or Event of Default
          shall exist; and

               (ii)  Each of the Issuer and the Master Servicer shall have
          delivered to the Deal Agent a certificate to the effect that the
          Series 2002-1 Pledged Loans to be released from the Lien of this
          Supplement were not selected in a manner involving any adverse
          selection procedures and that the release of such Loans would not
          reasonably be expected to cause a Potential Amortization Event or an
          Amortization Event.

          Section 7.05. RELEASE UPON OPTIONAL SUBSTITUTION. (a) Under the terms
of the Pool Purchase Agreement, the Depositor may, with respect to Loans which
are Schedule 1-A Pool Loans, as described in the Pool Purchase Agreement, remove
Loans from such Schedule 1-A and substitute other Loans. If the Depositor elects
to substitute a Loan for a Schedule 1-A Pool Loan which is a Series 2002-1
Pledged Loan, then the Issuer may, as provided in (b) below, obtain a release of
such Loan from the Lien of this Supplement and substitute in place of such
released Series 2002-1 Pledged Loan a Qualified Substitute Loan or Qualified
Substitute Loans.

          (b)  SUBSTITUTION. Any such substitution of a Qualified Substitute
Loan or Qualified Substitute Loans under this Section 7.05 shall be accomplished
in the same manner as the Grant of other Additional 2002-1 Pledged Loans and the
Issuer shall include such Qualified Substitute Loans in the Additional 2002-1
Pledged Loans described in a Supplemental Grant. The Qualified Substitute Loan
or Qualified Substitute Loans will not be selected in a manner adverse to the
Noteholders, and the aggregate principal balance of the Qualified Substitute
Loans will not be less than the principal balance of the Loans released and for
which the substitution occurs. In connection with the substitution for one or
more Qualified Substitute Loan or Qualified Substitute Loans, the Issuer shall
deposit an amount, if any, equal to the related Substitution Adjustment Amount
in the Collection Account on the date of substitution without any reimbursement
therefor. The Issuer shall cause the Master Servicer to amend the Series 2002-1
Loan Schedule to reflect the removal of such Schedule 1-A Pool Loan and the
substitution of the Qualified Substitute Loan or Qualified Substitute Loans and
the Issuer shall cause the Master Servicer to deliver the amended Series 2002-1
Loan Schedule to the Issuer and the Trustee and Collateral Agent.

          (c)  RELEASE TO ISSUER. Upon each release of a Series 2002-1 Pledged
Loan under this Section 7.05, the Collateral Agent and the Trustee shall
automatically and without further action release, sell, transfer, assign, set
over and otherwise convey to the Issuer, without recourse, representation or
warranty, all of the Collateral Agent's and the Trustee's right, title and
interest in and to such released Schedule 1-A Pool Loan and the Series 2002-1
Pledged Assets related thereto, all monies due or to become due with respect
thereto and all Collections with respect thereto (including payments received
from Obligors from and including the last day of the Due Period next preceding
the date of release) free and clear of the lien of this Supplement. The
Collateral Agent and the Trustee shall execute such documents, releases and
instruments of transfer or assignment and take such other actions as shall
reasonably be requested by the Issuer or Depositor to effect the release of such
Schedule 1-A Pool Loan and the related Series 2002-1 Pledged Assets pursuant to
this subsection 7.05. Promptly after the occurrence of a Release Date and after
the substitution for the Schedule 1-A Pool Loan, the

                                       39
<Page>

Issuer shall direct the Master Servicer to delete such Loans from the Series
2002-1 Loan Schedule.

          Section 7.06. RELEASE UPON PAYMENT IN FULL. At such time as the Series
2002-1 Notes have been paid in full, all fees and expenses of the Trustee and
the Collateral Agent with respect to Series 2002-1 have been paid in full and
all obligations relating to the Series 2002-1 Documents have been paid in full,
then, the Collateral Agent shall, upon the written request of the Issuer,
release all liens and assign to Issuer (without recourse, representation or
warranty) all right, title and interest of the Collateral Agent in and to the
Series 2002-1 Collateral, and all proceeds thereof. The Collateral Agent and the
Trustee shall execute and deliver such instruments of assignment, in each case
without recourse, representation or warranty, as shall be reasonably requested
by the Issuer to release the security interest of the Collateral Agent in the
Series 2002-1 Collateral.

                                  ARTICLE VIII

                       REPORTS TO TRUSTEE AND NOTEHOLDERS

          Section 8.01. MONTHLY REPORT TO TRUSTEE. On or before the
Determination Date prior to each Payment Date the Master Servicer shall transmit
to the Trustee in a form or forms acceptable to the Trustee information
necessary to make payments and transfer funds as provided in Sections 6.01 and
6.06, and the Master Servicer shall produce the Settlement Statement for such
Payment Date. Transmission of such information to the Trustee shall be deemed to
be a representation and warranty by the Master Servicer to the Trustee and the
Noteholders that such information is true and correct in all material respects.
At the option of the Master Servicer, the Settlement Statement may be combined
with the Servicer's Monthly Report described in Section 8.02 and delivered to
the Trustee as one report.

          Section 8.02. MONTHLY SERVICING REPORT. On each Determination Date,
the Master Servicer shall deliver to the Trustee and the Issuer the Servicer's
Monthly Report in the form set forth in Exhibit D to this Supplement with such
additions as the Trustee may from time to time request, together with a
certificate of a Servicing Officer substantially in the form of Exhibit D,
certifying the accuracy of such report and that no Event of Default or event
that with the giving of notice or lapse of time or both would become an Event of
Default has occurred, or if such event has occurred and is continuing,
specifying the event and its status. Such certificate shall also identify which,
if any, Series 2002-1 Pledged Loans have become Defective Loans, Defaulted Loans
or Deferred Loans during the preceding Due Period.

          Section 8.03. DELIVERY OF REPORTS TO NOTEHOLDERS. The Master Servicer
shall on each date it delivers a report to the Trustee under Section 8.01 or
8.02 above deliver a copy of each such report to the Deal Agent.

          Section 8.04. TAX REPORTING. The Trustee shall file or cause to be
filed with the Internal Revenue Service and furnish or cause to be furnished to
Noteholders Information Reporting Forms 1099, together with such other
information reports or returns at the time or times and in the manner required
by the Internal Revenue Code consistent with the treatment of the Notes as
indebtedness of the Issuer for federal income tax purposes.

                                       40
<Page>

                                   ARTICLE IX

                               AMORTIZATION EVENTS

          Section 9.01. AMORTIZATION EVENTS. If one or more of the following
events shall occur and be continuing:

          (a)  the Issuer fails to pay in full the interest due and payable on
the Series 2002-1 Notes on any Payment Date and such failure continues for two
Business Days; PROVIDED, HOWEVER, that if the Issuer has made deposits of
Collections to the Collection Account in an amount sufficient to make such
interest payment when due in accordance with the Priority of Payments, but the
payment cannot be made in a timely manner as a result of a circumstances beyond
the Issuer's control, the grace period shall be extended to three Business Days;

          (b)  the Issuer fails to pay in full the principal of the Series
2002-1 Notes on or before the Maturity Date and such failure continues for two
Business Days; PROVIDED, HOWEVER, that if the Issuer has made deposits of
Collections to the Collection Account in an amount sufficient to make such
payment in accordance with the Priority of Payments, but such payment cannot be
timely made as a result of a circumstances beyond the Issuer's and the Master
Servicer's control, the grace period shall be extended to three Business Days;

          (c)  any Event of Default occurs under this Supplement;

          (d)  a Servicer Default occurs under the Agreement or this Supplement;

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

          (f)  the Consolidated Extrapolated Cumulative Cancellation Rate at any
time exceeds 14%.

          (g)  the Three Month Rolling Average Delinquency Ratio as calculated
for any Payment Date exceeds 2.5%;

          (h)  the Gross Excess Spread for any Due Period ending on or prior to
August 31, 2003, is less than 3.50% for any Due Period; for Due Periods ending
after August 31, 2003 this provision shall not apply; except that if any
Alternate Investor or Conduit does not extend its Liquidity Termination Date on
or before August 31, 2003, this provision shall continue to apply;

          (i)  a Change of Control occurs without the written consent of the
Required Class Agents;

          (j)  if (i) any Trendwest Loans are then included in the Series 2002-1
Pledged Loans and (ii) (A) WorldMark voluntarily incurs or at any time becomes
voluntarily liable for any Debt (other than customary trade payables), (B) any
of WorldMark's property becomes subject to any Liens, other than utility or
other easements or licenses unrelated to any debt of WorldMark or Liens that do
not exceed, in the aggregate, $100,000 or (C) WorldMark involuntarily incurs or
is liable for any debt or its property becomes involuntarily subject to any

                                       41
<Page>

Liens (other than utility or similar easements or licenses unrelated to any debt
of WorldMark) that individually or in the aggregate (with respect to all such
Debt and the obligations secured by all such Liens) exceed $1,000,000;

          (k)  the amount of the Borrowing Base at the end of any Due Period is
less than the Notes Principal Amount on that date and the Issuer fails on the
following Payment Date to pay in full the amount of principal on the Notes
required to reduce the Notes Principal Amount to the Borrowing Base or to
increase the Borrowing Base to the Notes Principal Amount; provided, however,
that, for such purposes, if the Cendant Ratings Requirement is not met as of
such Payment Date, the Borrowing Base, as it was calculated on the last day of
the preceding Due Period, shall be reduced to remove from the Borrowing Base the
Loan Balances of all Series 2002-1 Pledged Loans which are Green Loans.

          (l)  an Insolvency Event occurs with respect to Cendant; and

          (m)  Cendant fails to perform under the terms of the Performance
Guaranty or the Performance Guaranty shall cease to be in full force and effect;

          (n)  The Notes Principal Amount shall at any time exceed the Series
2002-1 Adjusted Loan Balance;

          (o)  Failure on the part of the Depositor duly to observe or perform
any covenants or agreements of the Depositor set forth in any of the Facility
Documents to which the Depositor is a party and such failure continues
unremedied for a period of 30 days after the earlier of the date on which the
Depositor has actual knowledge of the failure and the date on which written
notice of such failure, requiring the same to be remedied, shall have been given
to the Depositor by the Issuer, the Trustee or any Noteholder;

          (p)  Any representation and warranty made by the Depositor in any
Facility Document shall prove to have been incorrect in any material respect
when made and the Depositor is not in compliance with such representation or
warranty within 30 days after the earlier of the date on which the Depositor has
actual knowledge of such breach and the date on which written notice of such
breach requiring that such breach be remedied, shall have been given to the
Depositor by the Issuer, the Trustee or any Noteholder.

then, in the case of an event described in any clause except clause (c) of the
Events of Default in Section 10.01, or clause (l) above, the Deal Agent at the
direction of the Majority Facility Investors, or, with respect to an event
described in clause (j) or (k), the Deal Agent, at the direction of any Class
Agent or, with respect to clause (h) if such provision applies after August 31,
2003, the Deal Agent at the direction of the Class Agent or Class Agents which
have not extended their Liquidity Termination Dates to a date on or after August
31, 2003, by notice given in writing to the Issuer, the Master Servicer and the
Trustee, may declare that an Amortization Event has occurred as of the date of
such notice and, in the case of any event described in clause (c) of the Events
of Default in Section 10.01, or clause (l) of this Section 9.01, an Amortization
Event will occur immediately upon the occurrence of such event without any
notice or other action on the part of the Deal Agent, the Trustee or any other
entity.

                                       42
<Page>

          For purposes of determining the Consolidated Extrapolated Cumulative
Cancellation Rate, the Deal Agent and the Master Servicer shall calculate the
"Extrapolated Cumulative Cancellation Rate" or "ECCR." In calculating the ECCR
for a Seller, the Deal Agent and the Master Servicer will be permitted to use
static pool information reported by the Seller in the manner to which such
Seller is accustomed. The Extrapolated Cumulative Cancellation Rate or ECCR
means, for any Seller, the weighted average of the Original Principal Balances
for each period included in the calculation, multiplied for each period by a
fraction (stated as a percentage) the numerator of which is (A) the sum of the
Current Principal Balances for all Loans originated by such Seller or any of its
Subsidiaries which have become Cancelled Loans, divided by the Original
Principal Balance for all Loans originated by such Seller or any of its
Subsidiaries during the period, and the denominator of which is (B) one minus
the ratio of its Current Principal Balance divided by its Original Principal
Balance.

          The ECCR for any entity will be calculated using the oldest 20
consecutive quarters of data from the preceding 28 quarters. The process of
adding the most recent quarter of eligible data, and subtracting the oldest
quarter of formerly eligible data will be accomplished by weight-averaging the
static pool data from the year being added, and the year being subtracted, by
whole increments of 25% that add to 100% and correspond with the number of
quarters that would be necessary to calculate the oldest 20 consecutive quarters
of the preceding 28 quarters.

          The methodology to be used by the Deal Agent and Master Servicer to
calculate a Seller's ECCR on a quarterly basis shall be as shown on Exhibit E.
In case of any dispute with respect to the calculation of the ECCR, the Deal
Agent and Master Servicer will jointly determine the appropriate calculation.

          For any Seller,

                       CCR
          ECCR =  ------------
                  1- (CPB/OPB)

          Where,

          ECCR = Extrapolated Cumulative Cancellation Rate
          CCR = Cumulative Cancellation Rate
          CPB = Current Principal Balance
          OPB = Original Principal Balance

          "CUMULATIVE CANCELLATION RATE" means for any Seller, the outstanding
principal balance at the time of cancellation for all Loans that have become
Cancelled Loans divided by the Original Principal Balance for all Loans
originated by the Seller or any of its subsidiaries (other than the Depositor or
the Issuer).

          "CURRENT PRINCIPAL BALANCE" means with respect to any origination
period, the current principal balance as of the date of calculation of all Loans
originated by such Seller or any of its subsidiaries (other than the Depositor
or the Issuer) still outstanding at that time.

                                       43
<Page>

          "ORIGINAL PRINCIPAL BALANCE" means with respect to any origination
period, the original principal balance of all Loans originated by such Seller or
any of its subsidiaries (other than the Depositor or the Issuer) during that
period.

                                    ARTICLE X

                                EVENTS OF DEFAULT

          Section 10.01. EVENTS OF DEFAULT.

          (a)  Failure on the part of the Issuer (1) to make or cause to be made
any payment or deposit required by the terms of the Agreement, this Supplement
or any other Series 2002-1 Document on or before the date such payment or
deposit is required to be made and such failure remains unremedied for two
Business Days (provided, however, that if the Issuer is unable to make a payment
or deposit when due and such failure is as a result of circumstances beyond the
Issuer's control, the grace period shall be extended to three Business Days),
(2) failure on the part of the Issuer to provide a Hedge Agreement meeting the
requirements of Section 6.07 of this Supplement and such failure continues for
five Business Days or the Hedge Provider ceases to be a Qualified Hedge Provider
and the Issuer fails to provide a Qualified Hedge Provider by one of the methods
set forth in Section 6.08 within the five days provided in Section 6.08 and such
failure continues for five Business Days beyond the period allowed in Section
6.08, or (3) duly to observe or perform or cause to be observed or performed any
covenant or agreement of the Issuer set forth in the Agreement, this Supplement
or any other Series 2002-1 Document or other Facility Document to which the
Issuer is a party (other than these events caused in clause (1) or (2) of this
subsection), which continues unremedied for a period of 30 days (or five
Business Days, in the case of subsection 4.1(b), (f), (g)(2) or (g)(3) or
4.2(a), (c), (d), (e), (i), (l), (n), (o) or (p) of the Agreement) after the
earlier of (aa) the date on which written notice of such failure, requiring the
same to be remedied, shall have been given to an officer of the Issuer by the
Trustee or any Noteholder or (bb) the date on which an officer of the Issuer has
actual knowledge thereof;

          (b)  any representation or warranty made by the Issuer with respect to
itself in the Agreement or this Supplement shall prove to have been incorrect in
any material respect when made and has a material adverse effect on the
Trustee's or the Collateral Agent's interest in the Series 2002-1 Pledged Loans
and other related Series 2002-1 Pledged Assets and the Issuer is not in
compliance with such representation or warranty within ten Business Days after
the earlier of the date on which the Issuer or a Responsible Officer of the
Trustee has actual knowledge of such breach and the date on which written notice
of such breach requiring that such breach be remedied, shall have been given to
the Issuer by the Trustee or any Noteholder;

          (c)  an Insolvency Event shall occur with respect to any Seller of
Series 2002-1 Loans, the Depositor, the Issuer or Cendant;

          (d)  the Issuer shall become an "investment company" or shall become
under the control of an "investment company" within the meaning of the
Investment Company Act; or

                                       44
<Page>

          (e)  the Master Servicer shall have been terminated following a
Servicer Default, and a Successor Master Servicer shall not have been appointed
or such appointment shall not have been accepted within five Business Days after
the date of the termination stated in the Termination Notice and the Trustee is
not acting as Master Servicer.

THEN, in the case of the event described in subparagraph (a)(3), after the
applicable grace period, if any, set forth in such subparagraphs, the Deal Agent
acting upon instructions of the Majority Facility Investors by notice given in
writing to the Issuer (and to the Trustee if given by the Noteholders) may
declare that an event of default with respect to Series 2002-1 (an "Event of
Default") has occurred as of the date of such notice, and in the case of any
event described in subparagraph (a)(l), (a)(2), (b), (c), (d) or (e), an Event
of Default with respect to Series 2002-1 shall occur without any notice or other
action on the part of the Trustee or the Noteholders, immediately upon the
occurrence of such event and shall continue unless waived in writing by the
Required Purchasers of the Series 2002-1 Notes.

          Section 10.02. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

          (a)  If an Event of Default described in paragraph (a), (b), (d) or
(e) of Section 10.1 should occur and be continuing, then and in every such case
the Majority Facility Investors may declare all the Series 2002-1 Notes to be
immediately due and payable, by a notice in writing to the Issuer (and to the
Trustee if declared by Noteholders), and upon any such declaration the unpaid
principal amount of the Series 2002-1 Notes, together with accrued or accreted
and unpaid interest thereon through the date of acceleration, shall become
immediately due and payable. If an Event of Default described in paragraph (c)
of Section 10.1 should occur then and in every such case the Series 2002-1 Notes
together with accrued or accreted and unpaid interest through the date of
acceleration, shall become automatically and immediately due and payable.

          (b)  If an Event of Default has occurred and the maturity of the
Series 2002-1 Notes has been accelerated, such acceleration may be rescinded or
annulled the Majority Facility Investors by written notice to the Issuer and the
Trustee may, but are not required to rescind and annul such acceleration.

          Section 10.03. AUTHORITY TO INSTITUTE PROCEEDINGS AND DIRECT REMEDIES.
If an Event of Default has occurred and is continuing, the Majority Facility
Investors shall have the right to direct the Trustee as provided in Section 9.15
of the Agreement.

          Section 10.04. DISTRIBUTIONS OF AMOUNTS COLLECTED. If the Indenture
Trustee collects any money or property pursuant to this Article X following the
acceleration of the maturities of the Notes (so long as such declaration shall
not have been rescinded or annulled), it shall pay out the money or property in
the following order:

               FIRST, to the Trustee in payment of the Monthly Trustee Fees and
          in reimbursement of permitted expenses of the Trustee under each of
          the Facility Documents to which the Trustee is a party, provided that
          such permitted expenses relate to Series 2002-1; in the event of a
          Servicer Default and the replacement of the Master Servicer with the
          Trustee or a Successor Master Servicer, the costs and

                                       45
<Page>

          expenses of replacing the Master Servicer shall be permitted expenses
          of the Trustee;

               SECOND, if the Master Servicer is not Fairfield Acceptance
          Corporation-Nevada or an affiliate of Cendant, to the Master Servicer,
          in payment of amounts due and unpaid of the Master Servicer Fee and,
          whether or not Fairfield Acceptance Corporation-Nevada or another
          affiliate of Cendant is then the Master Servicer, to the Master
          Servicer in reimbursement of any unreimbursed Master Servicer
          Advances;

               THIRD, to Series 2002-1 Noteholders for interest according to the
          amounts due and unpaid on such Series 2002-1 Notes for interest and
          all other amounts (other than principal of the Notes) due to the
          Noteholders under the Series 2002-1 Documents;

               FOURTH, if the Master Servicer is Fairfield Acceptance
          Corporation-Nevada or another affiliate of Cendant, to the Master
          Servicer, in payment of amounts due and unpaid of the Master Servicer
          Fee;

               FIFTH, to the Series 2002-1 Noteholders in payment of unpaid
          principal on the Series 2002-1 Notes; provided, however, that, upon
          the direction of 100% of the Noteholders, any amounts otherwise due to
          the Noteholders under this provision FIFTH, shall not be applied to
          reduce principal, but shall be applied by the Trustee to purchase a
          Hedge Agreement in the amount and manner specified by the Noteholders;

               SIXTH, to the hedge provider or hedge providers under the Hedge
          Agreement or Hedge Agreements any termination payments due under any
          Hedge Agreement; and

               FINALLY, to Issuer, any remaining amounts free and clear of the
          lien of this Supplement.

          Section 10.05. SALE OF DEFAULTED LOANS AFTER AN EVENT OF DEFAULT. If
an Event of Default has occurred and is continuing, the Master Servicer will not
sell, assign, transfer or otherwise dispose of any Defaulted Loan or any
interest therein, or any Collateral securing a Defaulted Loan, without the prior
written consent of the Deal Agent.

                                   ARTICLE XI

                   PROVISIONS RELATING TO THE MASTER SERVICER

          Section 11.01. MASTER SERVICER ADVANCES. On or before each
Determination Date the Master Servicer may deposit into the Collection Account
an amount equal to the aggregate amount of Master Servicer Advances, if any,
with respect to Scheduled Payments on Series 2002-1 Pledged Loans for the
preceding Due Period which are not received on or prior to such Payment Date.
Such Master Servicer Advances shall be included as Available Funds. Neither

                                       46
<Page>

the Master Servicer, any Successor Master Servicer nor the Trustee, acting as
Master Servicer, shall have any obligation to make any Master Servicer Advance
and may refuse to make a Master Servicer Advance for any reason or no reason.
The Master Servicer shall not make any Master Servicer Advance that, after
reasonable inquiry and in its sole discretion, it determines is unlikely to be
ultimately recoverable from subsequent payments or collections or otherwise with
respect to the Series 2002-1 Pledged Loan with respect to which such Master
Servicer Advance is proposed to be made.

          Section 11.02. ADDITIONAL EVENTS OF SERVICER DEFAULTS. In addition to
the events constituting a Servicer Default as set forth in Section 10.1 of the
Agreement, so long as any Series 2002-1 Notes remain outstanding, each of the
following shall also constitute a Servicer Default:

          (a)  Cendant permits on the last day of any fiscal quarter its Debt to
Capitalization Ratio (as defined in the Amended and Restated Credit Agreement
dated as of October 5, 2001 among Cendant as borrower, the lenders referred to
therein, The Chase Manhattan Bank, as Administrative Agent, The Bank of Nova
Scotia, Credit Lyonnais New York Branch and Citibank N.A., as co-documentation
agents, Bank of America, N.A., as syndication agent and J.P. Morgan Securities
Inc. as lead arranger, as such agreement, subject to the terms of Section 12.04
may be further amended and supplemented from time to time (as so amended and
supplemented from time to time, the "CREDIT AGREEMENT")) to be greater than
0.5:1;

          (b)  Cendant permits its Interest Coverage Ratio (as defined in the
Credit Agreement) for any Rolling Period (as defined in the Credit Agreement) to
be less than 3.0:1;

          (c)  any Indebtedness (as defined in the Credit Agreement) of Cendant
or any of its Subsidiaries (as defined in the Credit Agreement, including with
respect to the calculation of the ratios included in clauses (a) and (b) above,
but in no event including the Depositor, the Issuer or any other securitization
entity (of the type described in the definition of Securitization Entity in the
Credit Agreement)) exceeding $50,000,000 in the aggregate, is accelerated after
default beyond any applicable grace period provided with respect thereto (each
reference in clause (a) or (b) above or this clause (c) to a term defined in the
Credit Agreement shall be to that term as amended from time to time if the
amendments are made in accordance with Section 12.05 of this Supplement);

          (d)  the Master Servicer fails to deliver reports to the Deal Agent in
accordance with Section 8.03 of this Supplement and such failure remains
unremedied for five (5) Business Days.

          (e)  failure on the part of the Master Servicer duly to observe or
perform any other covenants or agreements of the Master Servicer set forth in
the Note Purchase Agreement and such failure continues unremedied for a period
of 20 days after the earlier of the date on which the Master Servicer has actual
knowledge of the failure and the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Master Servicer
by the Deal Agent; or

                                       47
<Page>

          (f)  any representation and warranty made by the Master Servicer in
the Note Purchase Agreement shall prove to have been incorrect in any material
respect when made and has a material and adverse impact on the Trustee's
interest in the Series 2002-1 Pledged Loans and other Series 2002-1 Pledged
Assets and the Master Servicer is not in compliance with such representation or
warranty within ten Business Days after the earlier of the date on which the
Master Servicer has actual knowledge of such breach and the date on which
written notice of such breach requiring that such breach be remedied, shall have
been given to the Master Servicer by the Deal Agent.

          Section 11.03. ADDITIONAL CONDITIONS TO MASTER SERVICER TRANSFER. In
addition to the conditions to the transfer of the Master Servicer function as
provided in Section 5.12(b) of the Agreement, the following conditions must be
satisfied before the transfer will be permitted:

          (a)  The entity resigning as Master Servicer and the entity becoming
Master Servicer shall deliver to the Trustee and to the Deal Agent a certificate
to the effect that the resignation of the existing Master Servicer and
replacement will not cause a Material Adverse Effect and as of the date of the
substitution, there has been no material adverse change with respect to the
servicing business of the new Master Servicer which will have a Material Adverse
Effect (within the meaning of (d) or (e) of the definition thereof) with respect
to it;

          (b)  The Performance Guaranty shall have been amended or a new
Performance Guaranty delivered to the Trustee which amendment or new agreement
guaranties the performance of the new Master Servicer on the same terms as the
guaranty which related to the resigning Master Servicer; and

          (c)  If at such time the Cendant Rating Requirement is not met, the
Deal Agent must deliver to the Trustee its written consent to the change.

          Section 11.04. FAIR MARKET VALUE OF DEFAULTED LOANS. For the purpose
of Section 5.5(f) of the Agreement, no Series 2002-1 Pledged Loan or Collateral
related thereto shall be sold to any Seller or Originator unless the cash
proceeds of such sale are at least equal to the fair market value of such Series
2002-1 Pledged Loan. For this purpose, "fair market value" shall mean initially,
an amount equal to 25% of the original sale price of the related Timeshare
Property and, in the event either the Issuer or the applicable Seller or
Originator shall determine that such percentage is not reflective of the fair
market value of the applicable Series 2002-1 Pledged Loan or Collateral related
thereto, the Issuer and the applicable Seller or Originator shall determine the
fair market value of such Series 2002-1 Pledged Loan or Collateral related
thereto, as a percentage of the original sale price of the related Timeshare
Property. Prior to any such determination of a revised fair market value,
written notice of such determination including, in reasonable detail, the
calculation thereof, shall be given by the Master Servicer to each Class Agent.
Any such determination shall be based on the historical inventory cost of the
applicable Seller or Originator consistent with the cost of goods sold.

                                       48
<Page>

                                   ARTICLE XII

                            MISCELLANEOUS PROVISIONS

          Section 12.01. RATIFICATION OF AGREEMENT. As supplemented by this
Supplement, the Agreement is in all respects ratified and confirmed and the
Agreement as so supplemented by this Supplement shall be read, taken and
construed as one and the same instrument.

          Section 12.02. COUNTERPARTS. This 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 12.03. GOVERNING LAW. THIS SUPPLEMENT IS GOVERNED BY AND SHALL
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

          Section 12.04. NOTICES TO DEAL AGENT AND BANK OF AMERICA, N.A.. All
communications and notices hereunder given to the Deal Agent or Bank of America,
N.A. shall be in writing and shall be deemed to have been duly given if
personally delivered to, or transmitted by overnight courier, or transmitted by
telex or telecopy and confirmed by a mailed writing or where permitted to be
delivered electronically herein, to the e-mail address provided:

     If to the Deal Agent:

     FLEET SECURITIES, INC.
     100 Federal Street 11F
     Boston, MA 02110
     Attention: Jason Truong
     Telephone: (617) 434-7270
     Telecopy: (617) 434-1533
     (or such other address as may hereafter be furnished to the Issuer, the
     Trustee, the Master Servicer and Bank of America, N.A.).

If to Bank of America, N.A.:

     BANK OF AMERICA, N.A.
     Bank of America Corporate Center
     100 North Tryon Street, 10th Floor
     Charlotte, North Carolina 28255
     Attention: Michelle M. Heath
     Telephone: (704) 386-7922
     Telecopy: (704) 388-0027
     (or such other address as may hereafter be furnished to the Issuer, the
     Trustee, the Master Servicer and the Deal Agent).

                                       49
<Page>

          Section 12.05. CHANGES TO CREDIT AGREEMENT. For purposes of the
Servicer Defaults set forth in Section 11.02 of this Supplement any changes to
the definitions included in the Credit Agreement which affect the numerical
calculations of the ratios provided in Section 11.02 (a) or (b) thereof will be
recognized for purposes of Section 11.02 only if the amendment is entered into
with the consent of the majority of the Class Agents. Notwithstanding the
preceding sentence, no consent of the Class Agents or the Deal Agent will be
required for any amendment or modification which is solely in the nature of
correcting typographical errors or drafting ambiguities in the definitions of
terms used in connection with the ratios provided in clauses (a) or (b) of
Section 11.02 or the related calculations, and which in each case do not have
the effect of changing the numerical result obtained in any calculation
performed in connection with such ratios (when such definitional change is
applied on a pro forma basis to the current fiscal period and to the immediately
preceding four fiscal periods). In any case where consent of the majority of the
Class Agents is required under this Section 12.05, if the proposed amendment is
delivered in writing to the Deal Agent and each Class Agent and less than a
majority of the Class Agents objects in writing to the amendment within five
Business Days of receipt of the notice, then a majority of the Class Agents
shall be conclusively determined to have given their consent to the proposed
amendment.

          Section 12.06. NONPETITION COVENANT. Each Noteholder hereby recognizes
and agrees to the provisions of Section 13.15 of the Agreement and specifically
agrees that by accepting a Series 2002-1 Note, it covenants and agrees that it
will not at any time institute against the Issuer or the Depositor, or join in
instituting against the Issuer or the Depositor, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other proceedings under
any Debtor Relief Law.

          Section 12.07. SATISFACTION OF RATING AGENCY CONDITION. It is agreed
by the parties hereto, that, any action which, under the terms of the Agreement,
is subject to the satisfaction of the Rating Agency Condition, shall also be
subject to the condition that such action shall not be taken unless the Deal
Agent has given its prior written consent to the action.

          Section 12.08. AMENDMENT TO DOCUMENTS. The Issuer shall not enter into
any amendment to any of the Facility Documents to which it is a party without
the prior written consent of the Majority Facility Investors.

                                       50
<Page>

          IN WITNESS WHEREOF, the Issuer, the Master Servicer, the Trustee and
the Collateral Agent have caused this Supplement to be duly executed by their
respective officers thereunto duly authorized, all as of the day and year first
above written.

                                 SIERRA RECEIVABLES FUNDING COMPANY, LLC,
                                 as Issuer

                                 By:      /s/ Ralph E. Turner
                                     --------------------------------------
                                     Name: Ralph E. Turner
                                     Title: President and Treasurer

                                 FAIRFIELD ACCEPTANCE
                                 CORPORATION-NEVADA,
                                 as Master Servicer

                                 By:      /s/ Ralph E. Turner
                                     --------------------------------------
                                     Name: Ralph E. Turner
                                     Title: President and Treasurer

                                 WACHOVIA BANK, NATIONAL ASSOCIATION,
                                 as Trustee

                                 By:      /s/ Rob Ashbaugh
                                     -----------------------------------
                                     Name: Rob Ashbaugh
                                     Title: Vice President

                                 WACHOVIA BANK, NATIONAL ASSOCIATION,
                                 as Collateral Agent

                                 By:      /s/ Robin M. Belanger
                                     -------------------------------------
                                     Name: Robin M. Belanger
                                     Title: Vice President

                  [Signature page for Series 2002-1 Supplement]<Page>

                                                                   EXHIBIT 10.63

                                                                  EXECUTION COPY

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

                         MASTER LOAN PURCHASE AGREEMENT

                           Dated as of August 29, 2002

                                 by and between

                    FAIRFIELD ACCEPTANCE CORPORATION-NEVADA,
                                    as Seller

                                       and

                            FAIRFIELD RESORTS, INC.,
                                as Co-Originator

                                       and

                          FAIRFIELD MYRTLE BEACH, INC.,
                                as Co-Originator

                                       and

                   SEA GARDENS BEACH AND TENNIS RESORT, INC.,
                          VACATION BREAK RESORTS, INC.,
                  VACATION BREAK RESORTS AT STAR ISLAND, INC.,
                               PALM VACATION GROUP
                                       and
                           OCEAN RANCH VACATION GROUP,
                             each as a VB Subsidiary

                                       and

                               PALM VACATION GROUP
                                       and
                           OCEAN RANCH VACATION GROUP,
                            each as a VB Partnership

                                       and

                           SIERRA DEPOSIT COMPANY, LLC
                                  as Purchaser

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

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                          PAGE
                                                                                                          ----
<S>                                                                                                         <C>
RECITALS.....................................................................................................1

Section 1.    Definitions....................................................................................2

Section 2.    Purchase and Sale of Loans....................................................................17

Section 3.    Pool Purchase Price...........................................................................17

Section 4.    Payment of Purchase Price.....................................................................17

              (a)    Closing Dates..........................................................................17

              (b)    Manner of Payment of Additional Pool Purchase Price....................................17

              (c)    Scheduled Payments Under Loans and Cut-Off Date........................................18

Section 5.    Conditions Precedent to Sale of Loans.........................................................18

Section 6.    Representations and Warranties of the Seller, FRI, FMB and the VB Subsidiaries................18

              (a)      General Representations and Warranties of the Seller, FRI, FMB and the VB
                       Subsidiaries.........................................................................18

              (b)      Representations and Warranties Regarding the Loans...................................23

              (c)      Representations and Warranties Regarding the Loan Files..............................28

              (d)      Survival of Representations and Warranties...........................................29

              (e)      Indemnification of the Company.......................................................29

Section 7.    Repurchases or Substitution of Loans for Breach of Representations and Warranties.............29

Section 8.    Covenants of the Seller and FRI...............................................................29

              (a)    Affirmative Covenants of the Seller and FRI............................................29

              (b)    Negative Covenants of the Seller and FRI...............................................33

Section 9.    Representations and Warranties of the Company.................................................35

Section 10.   Covenants of the Company......................................................................36

Section 11.   Miscellaneous.................................................................................37

              (a)    Amendment..............................................................................37

              (b)    Assignment.............................................................................37

              (c)    Counterparts...........................................................................38

              (d)    Termination............................................................................38

              (e)    Governing Law..........................................................................38
</Table>

                                        i
<Page>

                                TABLE OF CONTENTS
                                   (continued)

<Table>
<Caption>
                                                                                                          PAGE
                                                                                                          ----
              <S>                                                                                           <C>
              (f)    Notices................................................................................38

              (g)    Severability of Provisions.............................................................38

              (h)    Successors and Assigns.................................................................38

              (i)    Costs, Expenses and Taxes..............................................................39

              (j)    No Bankruptcy Petition.................................................................39

              (k)    Treatment of Timeshare Upgrades........................................................39
</Table>

                                       ii
<Page>

                                    SCHEDULES

Schedule 1 - Loan Schedule

Schedule 2 - Resorts

Schedule 3 - Environmental Issues

Schedule 4 - Lockbox Accounts

Schedule 5 - Litigation

                                    EXHIBITS

Exhibit A    Forms of Custodial Agreements

Exhibit B    Form of Assignment of Additional Loans

Exhibit C    Credit Standards and Collection Policies of Fairfield Acceptance
             Corporation - Nevada and Fairfield Resorts, Inc.

Exhibit D    Forms of Loans

Exhibit E    Forms of Lockbox Agreements

                                       iii
<Page>

                         MASTER LOAN PURCHASE AGREEMENT

     THIS MASTER LOAN PURCHASE AGREEMENT (this "AGREEMENT"), dated as of
August 29, 2002, is made by and between FAIRFIELD ACCEPTANCE CORPORATION-NEVADA,
a Delaware corporation, as seller (the "SELLER"), FAIRFIELD RESORTS, INC., a
Delaware corporation and the parent corporation of the Seller, as co-originator
("FRI"), FAIRFIELD MYRTLE BEACH, INC., a Delaware corporation and a wholly-owned
subsidiary of FRI, as co-originator ("FMB"), SEA GARDENS BEACH AND TENNIS
RESORT, INC., a Florida corporation ("SEA GARDENS"), VACATION BREAK RESORTS,
INC., a Florida corporation ("VBR"), VACATION BREAK RESORTS AT STAR ISLAND,
INC., a Florida corporation ("VBRS") (each of Sea Gardens, VBR and VBRS being
wholly-owned subsidiaries of Vacation Break, USA, Inc., a wholly-owned
subsidiary of FRI), PALM VACATION GROUP, a Florida general partnership ("PVG"),
OCEAN RANCH VACATION GROUP, a Florida general partnership ("ORVG") (each of Sea
Gardens, VBR, VBRS, PVG and ORVG are hereinafter collectively referred to as the
"VB SUBSIDIARIES" and PVG and ORVG are hereinafter collectively referred to as
the "VB PARTNERSHIPS") and SIERRA DEPOSIT COMPANY, LLC, a Delaware limited
liability company, as purchaser (hereinafter referred to as the "PURCHASER" or
the "COMPANY").

                                    RECITALS

     WHEREAS, FRI, FMB and the VB Subsidiaries have originated certain Loans in
connection with the sale to Obligors of Timeshare Properties at various Resorts;

     WHEREAS, in the ordinary course of their businesses, FRI purchases or will
purchase directly or indirectly from FMB and the VB Subsidiaries, and the Seller
purchases or will purchase from FRI, certain Loans and related property
(including an interest in the Timeshare Properties underlying such Loans);

     WHEREAS, each of FRI, FMB, the VB Subsidiaries, the Seller and the Company
wishes to enter into this Agreement and the related Master Loan Purchase
Agreement Supplement for each Series of Notes (each, a "PA SUPPLEMENT") in order
to, among other things, effect the sale to the Company on the related Closing
Date of Initial Loans and related Transferred Assets that FAC owns as of the
close of business on the related Cut-Off Date, and the sale to the Company of
Additional Loans (including Additional Upgrade Balances) and related Transferred
Assets that FAC will own from time to time thereafter as of the close of
business on the related Addition Cut-Off Dates; and

     WHEREAS, the Company intends to transfer and assign the Loans and related
Transferred Assets to the Issuer, which will then grant security interests in
the Loans and related Transferred Assets to Wachovia Bank, National Association,
as Collateral Agent on behalf of the Trustee and the holders of Notes issued
from time to time pursuant to a Master Indenture and Servicing Agreement of even
date herewith (the "INDENTURE AND SERVICING AGREEMENT"), together with any
Indenture Supplements thereto, each by and between Sierra Receivables Funding
Company, LLC as Issuer, FAC as Master Servicer, the Trustee and the Collateral
Agent.

<Page>

     NOW, THEREFORE, in consideration of the purchase price set forth herein,
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:

SECTION 1.   DEFINITIONS.

     Whenever used in this Agreement, the following words and phrases shall have
the following meanings:

     "ADDITION CUT-OFF DATE" shall mean, for Additional Loans of any Series, the
date set forth in the related Assignment.

     "ADDITION DATE" shall mean, with respect to any Series, the Addition Date
as defined in the related PA Supplement.

     "ADDITIONAL LOAN" shall mean, with respect to any Series, each installment
contract or contract for deed or contract or note secured by a mortgage, deed of
trust, vendor's lien or retention of title, in each case relating to the sale of
one or more Timeshare Properties or Green Timeshare Properties to an Obligor and
each Additional Upgrade Balance, in each case constituting one of the Loans of
such Series purchased from the Seller on an Addition Cut-Off Date and listed on
Schedule 1 to the related Assignment.

     "ADDITIONAL POOL PURCHASE PRICE" shall have the meaning set forth in
Section 3.

     "ADDITIONAL UPGRADE BALANCE" shall mean, with respect to any Loan, any
future borrowing made by the related Obligor pursuant to a modification of the
Loan relating to a Timeshare Upgrade after the Cut-Off Date or the Addition
Cut-Off Date, as applicable, with respect to such Loan, together with all money
due or to become due in respect of such borrowing.

     "AFFILIATE" of any Person shall mean any other Person controlling or
controlled by or under common control with such Person, and "control" shall mean
the power to direct the management and policies of such Person directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise, and "controlling" and "controlled" shall have meanings correlative to
the foregoing.

     "AGREEMENT" shall mean this Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

     "AMORTIZATION EVENT" shall mean, with respect to any Series, one or more of
the events constituting an Amortization Event as defined in the related
Indenture Supplement.

     "ALLIANCE PROGRAM" shall mean any sales and marketing program pursuant to
which an Originator acquires recovered Timeshare Property interests from sold
out third-party unaffiliated resorts for resale.

     "ASSESSMENTS" shall mean any assessments made with respect to a Timeshare
Property, including but not limited to real estate taxes, recreation fees,
community club or property owners' association dues, water and sewer improvement
district assessments or other similar

                                        2
<Page>

assessments, the nonpayment of which could result in the imposition of a Lien or
other encumbrance upon such Timeshare Property.

     "ASSIGNMENT" shall mean, with respect to any Series, an Assignment as
defined in the related PA Supplement.

     "ASSIGNMENT OF MORTGAGE" shall mean any assignment (including any
collateral assignment) of any Mortgage.

     "BANKRUPTCY CODE" shall mean the United States Bankruptcy Code, Title 11 of
the United States Code, as amended.

     "BENEFIT PLAN" shall mean any employee benefit plan as defined in Section
3(3) of ERISA in respect of which the Company or any ERISA Affiliate of the
Company is, or at any time during the immediately preceding six years was, an
"employer" as defined in Section 3(5) of ERISA.

     "BUSINESS DAY" shall mean any day other than (i) a Saturday or Sunday or
(ii) a day on which banking institutions in New York, New York, Las Vegas,
Nevada, or the city in which the Corporate Trust Office of the Trustee is
located, or any other city specified in the PA Supplement for a Series, are
authorized or obligated by law or executive order to be closed.

     "CENDANT" shall mean Cendant Corporation or any successor thereof.

     "CLOSING DATE" shall mean, with respect to any Series, the Closing Date as
defined in the related PA Supplement.

     "COLLATERAL" shall have the meaning set forth in the Indenture and
Servicing Agreement.

     "COLLATERAL AGENCY AGREEMENT" shall mean the Collateral Agency Agreement
dated as of January 15, 1998 by and between Fleet National Bank as predecessor
Collateral Agent, Fleet Securities, Inc. as deal agent and the secured parties
named therein, as amended by the First Amendment to Collateral Agency Agreement
dated as of July 31, 1998, as further amended by the Second Amendment to
Collateral Agreement dated as of July 25, 2000, as further amended by the Third
Amendment to Collateral Agency Agreement dated as of July 1, 2001, and as
further amended by the Fourth Amendment to Collateral Agency Agreement dated as
of August 29, 2002 by and among the Collateral Agent, the Trustee and other
secured parties, as such Collateral Agency Agreement may be amended,
supplemented or otherwise modified from time to time in accordance therewith.

     "COLLATERAL AGENT" shall mean Wachovia Bank, National Association, as
Collateral Agent, its successors and assigns and any entity which is substituted
as Collateral Agent under the terms of the Collateral Agency Agreement.

     "COLLECTION ACCOUNT" shall mean the account or accounts established
pursuant to Section 7.1(a) of the Indenture and Servicing Agreement.

     "COLLECTIONS" shall mean, with respect to any Loan, all funds, cash
collections and other cash proceeds of such Loan, including without limitation
(i) all Scheduled Payments or

                                        3
<Page>

recoveries made in the form of money, checks and like items to, or a wire
transfer or an automated clearinghouse transfer received in, any of the Lockbox
Accounts or received by the Issuer or the Master Servicer (or any Subservicer)
in respect of such Loan, (ii) all amounts received by the Issuer, the Master
Servicer (or any Subservicer) or the Trustee in respect of any Insurance
Proceeds relating to such Loan or the related Timeshare Property and (iii) all
amounts received by the Issuer, the Master Servicer (or any Subservicer) or the
Trustee in respect of any proceeds in respect of a condemnation of property in
any Resort, which proceeds relate to such Loan or the related Timeshare
Property.

     "COMPANY" shall have the meaning set forth in the preamble.

     "CONTAMINANTS" shall have the meaning set forth in Section 6(b)(xii).

     "CORPORATE TRUST OFFICE" shall have the meaning set forth in the Indenture
and Servicing Agreement.

     "CREDIT CARD ACCOUNT" shall mean an arrangement whereby an Obligor makes
Scheduled Payments under a Loan via pre-authorized debit to a Major Credit Card.

     "CREDIT STANDARDS AND COLLECTION POLICIES" shall mean the Credit Standards
and Collection Policies of FAC and FRI, a copy of which is attached to this
Agreement as Exhibit C, as the same may be amended from time to time in
accordance with the provisions of Section 8(b)(iii).

     "CUSTODIAL AGREEMENT" shall mean either (i) the custodial agreement dated
as of August 29, 2002 by and between the Issuer, FAC, EFI, Trendwest, Wachovia
Bank, National Association as Custodian, the Trustee and the Collateral Agent or
(ii) the Fourth Amended and Restated Custodial Agreement dated as of August 29,
2002 by and between Wells Fargo Bank Nevada, N.A. (successor by merger to First
Security Trust Company of Nevada), as Custodian, the Collateral Agent, the
Trustee, FRI, FAC, FMB, FFC II, FFC III, the Issuer and other parties named
therein, a copy of each of which is attached to this Agreement as Exhibit A, as
the same may be amended, supplemented or otherwise modified from time to time
thereafter in accordance with the terms hereof.

     "CUSTODIAN" shall mean, at any time, the custodian under either Custodial
Agreement at such time.

     "CUSTOMARY PRACTICES" shall mean the Master Servicer's practices with
respect to the servicing and administration of Loans as in effect from time to
time, which practices shall be consistent with the practices employed by prudent
lending institutions that originate and service instruments similar to the Loans
or other timeshare loans in the jurisdictions in which the Resorts are located.

     "CUT-OFF DATE" shall mean, with respect to any Series, the Cut-Off Date as
defined in the related PA Supplement.

     "DE MINIMUS LEVELS" shall have the meaning set forth in Section 6(b)(xii).

                                        4
<Page>

     "DEBTOR RELIEF LAWS" shall mean the Bankruptcy Code and all other
applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
receivership, insolvency, reorganization, suspension of payments or similar
debtor relief laws from time to time in effect affecting the rights of creditors
generally.

     "DEFAULTED LOAN" shall mean any Loan (a) with any portion of a Scheduled
Payment delinquent more than 60 days, (b) with respect to which the Master
Servicer shall have determined in good faith that the Obligor will not resume
making Scheduled Payments, (c) for which the related Obligor has been the
subject of a proceeding under a Debtor Relief Law or (d) for which cancellation
or foreclosure actions have been commenced.

     "DEFAULTED LOAN REPURCHASE CAP" shall mean, as of any date of
determination, an amount equal to the PRODUCT of (a) 10.5% MULTIPLIED BY (b) the
aggregate Loan principal balance of all Loans (calculated as of the Cut-Off Date
or related Addition Cut-Off Date, as applicable, for each Loan) sold by the
Seller to the Depositor pursuant to this Agreement on or prior to such date of
determination.

     "DEFECTIVE LOAN" shall mean, with respect to any Series, any Loan with any
uncured material breach of a representation or warranty of the Seller set forth
in Section 6(b) hereof and in the related PA Supplement.

     "DELINQUENT LOAN" shall mean, with respect to any Series, a Loan with any
portion of a Scheduled Payment delinquent more than 30 days, other than any Loan
that is a Defaulted Loan.

     "DEPOSITOR ADMINISTRATIVE SERVICES AGREEMENT" shall mean the administrative
services agreement dated as of August 29, 2002 by and between FAC as
administrator and the Company.

     "DUE DATE" shall mean, with respect to any Loan, the date on which an
Obligor is required to make a Scheduled Payment thereon.

     "DUE PERIOD" shall mean, with respect to any Payment Date, the immediately
preceding calendar month.

     "EFI" shall mean EFI Development Funding, Inc., a Delaware corporation and
a wholly-owned indirect Subsidiary of Cendant.

     "ELIGIBLE LOAN" shall mean, with respect to any Series, an Eligible Loan as
defined in the related PA Supplement.

     "ENVIRONMENTAL LAWS" shall have the meaning set forth in Section 6(b)(xii).

     "EQUITY PERCENTAGE" shall mean, with respect to a Loan, a fraction,
expressed as a percentage, the NUMERATOR of which is the EXCESS of (A) the
Timeshare Price of the related Timeshare Property relating to a Loan paid or to
be paid by an Obligor OVER (B) the outstanding principal balance of such Loan at
the time of sale of such Timeshare Property to such Obligor (LESS the amount of
any valid check presented by such Obligor at the time of such sale that has
cleared the payment system), and the DENOMINATOR of which is the Timeshare

                                        5
<Page>

Price of the related Timeshare Property, PROVIDED that any cash downpayments or
principal payments made on any initial Loan that have been fully prepaid as part
of a Timeshare Upgrade and financed downpayments under such initial Loan
financed over a period not exceeding six months from the date of origination of
such Loan that have actually been paid within such six-month period shall be
included for purposes of calculating the numerator of such fraction.

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

     "ERISA AFFILIATE" shall mean, with respect to any Person, (i) any
corporation which is a member of the same controlled group of corporations
(within the meaning of Section 414(b) of the Internal Revenue Code) as such
Person; (ii) a trade or business (whether or not incorporated) under common
control (within the meaning of Section 414(c) of the Internal Revenue Code) with
such Person; or (iii) a member of the same affiliated service group (within the
meaning of Section 414(m) of the Internal Revenue Code) as such Person, any
corporation described in clause (i) or any trade or business described in clause
(ii).

     "ERISA LIABILITIES" shall have the meaning set forth in Section 8(b)(vi).

     "EVENT OF DEFAULT" shall mean, with respect to any Series, one or more of
the events constituting an Event of Default under the related Indenture
Supplement.

     "FAC" shall mean Fairfield Acceptance Corporation-Nevada, a Delaware
corporation domiciled in Nevada and a wholly-owned Subsidiary of FRI.

     "FACILITY DOCUMENTS" shall mean, collectively, this Agreement, each PA
Supplement, the Indenture and Servicing Agreement, each Indenture Supplement,
the Pool Purchase Agreement, each PPA Supplement, the Custodial Agreement, the
Lockbox Agreements, the Collateral Agency Agreement, the Title Clearing
Agreements, the Loan Conveyance Documents, the Depositor Administrative Services
Agreement, the Issuer Administrative Services Agreement, the Financing
Statements and all other agreements, documents and instruments delivered
pursuant thereto or in connection therewith.

     "FAIRSHARE PLUS AGREEMENT" shall mean the Amended and Restated FairShare
Vacation Plan Use Management Trust Agreement effective as of January 1, 1996 by
and between FRI, FMB and such other Subsidiaries and third party developers as
may be named by an amendment or addendum thereto, as the same may be amended,
restated, supplemented or otherwise modified from time to time thereafter in
accordance with the terms of this Agreement.

     "FAIRSHARE PLUS PROGRAM" shall mean the program pursuant to which the
occupancy and use of a Timeshare Property is assigned to the trust created by
the FairShare Plus Agreement in exchange for annual symbolic points that are
used to establish the location, timing, length of stay and unit type of a
vacation, including without limitation systems relating to reservations,
accounting and collection, disbursement and enforcement of assessments in
respect of contributed units.

                                        6
<Page>

     "FCC" shall mean Fairfield Capital Corporation, a wholly-owned
special-purpose finance Subsidiary of FAC.

     "FFC II" shall mean Fairfield Funding Corporation II, a wholly-owned
special purpose finance Subsidiary of FAC.

     "FFC III" shall mean Fairfield Funding Corporation III, a wholly-owned
special purpose finance Subsidiary of FAC.

     "FIXED WEEK" shall mean a Timeshare Property representing a fee simple
interest in a lodging unit at a Resort that entitles the related Obligor to
occupy such lodging unit for a specified one-week period each year.

     "FMB" shall have the meaning set forth in the preamble.

     "FRI" shall have the meaning set forth in the preamble.

     "GAAP" shall mean generally accepted accounting principles as in effect
from time to time in the United States.

     "GRANT" shall have the meaning set forth in the Indenture and Servicing
Agreement.

     "GREEN LOAN" shall mean a Loan the proceeds of which are used to finance
the purchase of a Green Timeshare Property.

     "GREEN TIMESHARE PROPERTY" shall mean a Timeshare Property for which
construction on the related Resort has not yet begun or is subject to
completion.

     "INDEMNIFIED AMOUNTS" shall have the meaning set forth in Section 6(e).

     "INDENTURE AND SERVICING AGREEMENT" shall have the meaning set forth in the
recitals.

     "INDENTURE SUPPLEMENT" shall mean, with respect to any Series, an indenture
supplement to the Indenture and Servicing Agreement, executed and delivered in
connection with the issuance of the Notes of such Series pursuant to Section
2.10 of the Indenture and Servicing Agreement, and all amendments thereof and
supplements thereto.

     "INDEPENDENT DIRECTOR" shall mean an individual who is an Independent
Director as defined in the Limited Liability Company Agreement of the Company as
in effect on the date of this Agreement.

     "INITIAL CLOSING DATE" shall mean August 29, 2002.

     "INITIAL LOAN" shall mean, with respect to any Series, each Loan listed on
the related Loan Schedule on the Closing Date for such Series.

     "INSOLVENCY EVENT" shall mean, with respect to a specified Person, (a) the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or any substantial part of its property in an
involuntary case under any applicable

                                        7
<Page>

Debtor Relief Law now or hereafter in effect, or the filing of a petition
against such Person in an involuntary case under any applicable Debtor Relief
Law now or hereafter in effect, which case remains unstayed and undismissed
within 30 days of such filing, or the appointing of a receiver, conservator,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or the ordering of the
winding-up or liquidation of such Person's business; or (b) the commencement by
such Person of a voluntary case under any applicable Debtor Relief Law now or
hereafter in effect, or the consent by such Person to the entry of an order for
relief in an involuntary case under any such Debtor Relief Law, or the consent
by such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or the making by such
Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due or the admission
by such Person of its inability to pay its debts generally as they become due.

     "INSOLVENCY PROCEEDING" shall mean any proceeding relating to an Insolvency
Event.

     "INSTALLMENT CONTRACT" shall mean, with respect to any Series, an
installment sale contract for deed and retained title in a related Timeshare
Property by and between an Originator and an Obligor.

     "INSURANCE PROCEEDS" shall mean proceeds of any insurance policy relating
to any Loan or the related Timeshare Property, including any refund of unearned
premium, but only to the extent such proceeds are not to be applied to the
restoration of any improvements on the related Timeshare Property or released to
the Obligor in accordance with Customary Practices.

     "INTERNAL REVENUE CODE" shall mean the United States Internal Revenue Code
of 1986, as amended from time to time.

     "ISSUER" shall mean Sierra Receivables Funding Company, LLC, a Delaware
limited liability company.

     "ISSUER ADMINISTRATIVE SERVICES AGREEMENT" shall mean the administrative
services agreement dated as of August 29, 2002 by and between FAC as
administrator and the Issuer.

     "KONA" shall have the meaning set forth in Section 11(l).

     "LIEN" shall mean any security interest, mortgage, deed of trust, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever, including without limitation any
conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing and the filing of
any financing statement under the UCC (other than any such financing statement
filed for informational purposes only) or comparable law of any jurisdiction to
evidence any of the foregoing.

     "LOAN" shall mean, with respect to any Series, each installment contract or
contract for deed or contract or note secured by a mortgage, deed of trust,
vendor's lien or retention of title,

                                        8
<Page>

in each case relating to the sale of one or more Timeshare Properties or Green
Timeshare Properties to an Obligor, that is listed on the Loan Schedule for such
Series on the related Closing Date and any Additional Loans that are listed from
time to time on such Loan Schedule in accordance with the related PA Supplement.

     "LOAN CONVEYANCE DOCUMENTS" shall mean, with respect to any Loan, (a) the
Assignment of Additional Loans in the form of Exhibit B, if applicable, and (b)
any such other releases, documents, instruments or agreements as may be required
by the Company, the Issuer or the Trustee in order to more fully effect the sale
(including any prior assignments) of such Loan and any related Transferred
Assets.

     "LOAN DOCUMENTS" shall mean, with respect to any Loan, all papers and
documents related to such Loan, including the original of all applicable
promissory notes, stamped as required by the Custodial Agreement, the original
of any related recorded or (to the extent permitted under this Agreement)
unrecorded Mortgage (or a copy of such recorded Mortgage if the original of the
recorded Mortgage is not available, certified to be a true and complete copy of
the original) and a copy of any recorded or (to the extent permitted under this
Agreement) unrecorded warranty deed transferring legal title to the related
Timeshare Property to the Obligor; PROVIDED, HOWEVER, that the Loan Documents
may be provided in microfiche or other electronic form to the extent permitted
under the Custodial Agreement.

     "LOAN FILE" shall mean, with respect to any Loan, the Loan Documents
pertaining to such Loan and any additional amendments, supplements, extensions,
modifications or waiver agreements required to be added to the Loan File
pursuant to this Agreement, the Credit Standards and Collection Policies and/or
Customary Practices.

     "LOAN POOL" shall mean, with respect to any Series, all Loans identified in
the Loan Schedule for such Series.

     "LOAN RATE" shall mean the annual rate at which interest accrues on any
Loan, as modified from time to time in accordance with the terms of any related
Credit Standards and Collection Policies.

     "LOAN SCHEDULE" shall mean, with respect to any Series, the list of Loans
attached to the related PA Supplement as Schedule 1, as amended from time to
time on each Addition Date and Repurchase Date as provided in the related PA
Supplement, which list shall set forth the following information with respect to
each Loan therein as of the applicable date:

           (a)    the Loan number;

           (b)    the Obligor's name and the home address and telephone number
                  for such Obligor set forth in the Loan;

           (c)    the Resort in which the related Timeshare Property is
                  located;

           (d)    as to Fixed Weeks, the building, unit and week thereof; as
                  to UDIs, the phase number thereof; and as to all other
                  Timeshare Properties, the number of Points issued pursuant
                  to the FairShare Plus Program (if

                                        9
<Page>

                   applicable) for which occupancy rights in such Timeshare
                   Property may be redeemed and which are represented thereby;

           (e)    the Loan Rate;

           (f)    whether the Obligor has elected a PAC with respect to the
                  Loan;

           (g)    the original term of the Loan;

           (h)    the original Loan principal balance and outstanding Loan
                  principal balance as of the Cut-Off Date or related Addition
                  Cut-Off Date, as applicable;

           (i)    the date of execution of the Loan;

           (j)    the amount of the Scheduled Payment on the Loan;

           (k)    the original Timeshare Price and Equity Percentage; and

           (l)    whether the related Timeshare Property has been deeded to
                  the Obligor.

The Loan Schedule also shall set forth the aggregate amounts described under
clause (h) above for all outstanding Loans. The Loan Schedule may be in the form
of more than one list, collectively setting forth all of the information
required.

     "LOCKBOX ACCOUNT" shall mean any of the accounts established pursuant to a
Lockbox Agreement.

     "LOCKBOX AGREEMENT" shall mean any agreement substantially in the form of
Exhibit E by and between the Issuer, the Trustee, the Master Servicer and the
applicable Lockbox Bank, which agreement sets forth the rights of the Issuer,
the Trustee and the applicable Lockbox Bank with respect to the disposition and
application of the Collections deposited in the applicable Lockbox Account,
including without limitation the right of the Trustee to direct the Lockbox Bank
to remit all Collections directly to the Trustee.

     "LOCKBOX BANK" shall mean any of the commercial banks holding one or more
Lockbox Accounts for the purpose of receiving Collections.

     "LOT" shall mean a fully or partially developed parcel of real estate.

     "MAJOR CREDIT CARD" shall mean a credit card issued by any Visa USA, Inc.,
MasterCard International Incorporated, American Express Company, Discover Bank
or Diners Club International Ltd. credit card entity.

     "MASTER SERVICER" shall mean the master servicer under the Indenture and
Servicing Agreement.

     "MATERIAL ADVERSE EFFECT" shall mean, with respect to any Person and any
event or circumstance, a material adverse effect on:

                                       10
<Page>

           (a)    the business, properties, operations or condition (financial
     or otherwise) of any of such Person;

           (b)    the ability of such Person to perform its respective
     obligations under any Facility Documents to which it is a party;

           (c)    the validity or enforceability of, or collectibility of
     amounts payable under, any Facility Documents to which it is a party;

           (d)    the status, existence, perfection or priority of any Lien
     arising through or under such Person under any Facility Documents to which
     it is a party; or

           (e)    the value, validity, enforceability or collectibility of the
     Loans pledged as collateral for any Series of Notes or any of the other
     Transferred Assets pledged as collateral for any Series of Notes.

     "MORTGAGE" shall mean any mortgage, deed of trust, purchase money deed of
trust or deed to secure debt encumbering the related Timeshare Property, granted
by the related Obligor to the Originator of a Loan to secure payments or other
obligations under such Loan.

     "MULTIEMPLOYER PLAN" shall have the meaning set forth in Section 3(37) of
ERISA.

     "NOMINEE" shall mean (a) Lawyer's Title Insurance Corporation under the
Eleventh Amended and Restated Title Clearing Agreement dated as of August 29,
2002, as amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof, by and among FRI, FAC, the Issuer, FFC III,
FFC II, FCC, the Trustee, the Collateral Agent, Lawyers Title Insurance
Corporation and certain other parties thereto; (b) Colorado Land Title Company
under the Ninth Amended and Restated Title Clearing Agreement (Colorado) dated
as of August 29, 2002, as amended, supplemented or otherwise modified from time
to time in accordance with the terms thereof, by and among FRI, FAC, the Issuer,
FFC III, FFC II, FCC, the Trustee, the Collateral Agent, Colorado Land Title
Company and certain other parties thereto; (c) Lawyers Title Insurance
Corporation under the Seventh Amended and Restated Title Clearing Agreement
(Westwinds) dated as of August 29, 2002, as amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof, by and among
FRI, FAC, FMB, FFC III, FFC II, FCC, the Issuer, the Collateral Agent, the
Trustee, Lawyers Title Insurance Corporation and certain other parties thereto;
(d) Lawyers Title Insurance Corporation under the Sixth Amended and Restated
Nashville Title Clearing Agreement dated as of August 29, 2002, as amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof, by and among FRI, FAC, the Issuer, FFC III, FFC II, FCC, the
Trustee, the Collateral Agent, Lawyers Title Insurance Corporation and certain
other parties thereto; (e) Lawyers Title Insurance Corporation under the Sixth
Amended and Restated Seawatch Plantation Title Clearing Agreement dated as of
August 29, 2002, as amended, supplemented or otherwise modified from time to
time in accordance with the terms thereof, by and among FRI, FAC, FMB, the
Issuer, FFC III, FFC II, FCC, the Trustee, the Collateral Agent, Lawyers Title
Insurance Corporation and certain other parties thereto; (f) First American
Title Insurance Company under the Eighth Amended and Restated Supplementary
Trust Agreement (Arizona) dated as of August 29, 2002, as amended,

                                       11
<Page>

supplemented or otherwise modified from time to time in accordance with the
terms thereof, by and among FRI, FAC, the Issuer, FFC III, FFC II, FCC, the
Trustee, the Collateral Agent, First American Title Insurance Company and
certain other parties thereto; (g) Lawyer's Title of Nevada, Inc. under the
Second Amended and Restated Nevada Title Clearing Agreement dated as of August
29, 2002, as amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof, by and among FRI, FAC, FFC III, the Issuer,
the Trustee, the Collateral Agent, Lawyer's Title of Nevada, Inc. and certain
other parties thereto; and (h) such other nominees as shall be approved in
writing by the Collateral Agent pursuant to the terms of other title clearing
agreements (and similar documents, instruments and agreements) that may be
entered into from time to time by each of FRI, FAC, the Issuer and the
Collateral Agent (among other Persons) in accordance with the transactions
contemplated by this Agreement and the other Facility Documents relating to the
Loans and the Timeshare Properties.

     "NOTE" shall mean any Loan-backed note issued, executed and authenticated
in accordance with the Indenture and Servicing Agreement and any related
Indenture Supplement.

     "NOTEHOLDER" shall have the meaning set forth in the Indenture and
Servicing Agreement.

     "OBLIGOR" shall mean, with respect to any Loan, the Person or Persons
obligated to make Scheduled Payments thereon.

     "OPERATING AGREEMENT" shall mean the Seventh Amended and Restated Operating
Agreement dated as of July 1, 2001 by and between FRI, FMB, the VB Subsidiaries
and the Seller.

     "OPINION OF COUNSEL" shall mean a written opinion of counsel in form and
substance reasonably satisfactory to the recipient thereof.

     "ORIGINATOR" shall mean FRI, FMB or a VB Subsidiary, as the case may be, or
any other Subsidiary of Cendant Corporation that originates Loans in accordance
with the Credit Standards and Collection Policies for sale to FAC.

     "PAC" shall mean an arrangement whereby an Obligor makes Scheduled Payments
under a Loan via pre-authorized bank account debit.

     "PA SUPPLEMENT" shall have the meaning set forth in the recitals.

     "PAYMENT DATE" shall mean, with respect to any Series, the payment date set
forth in the related Indenture Supplement.

     "PERMITTED ENCUMBRANCE" shall mean, with respect to a Loan, any of the
following Liens against the related Timeshare Property: (i) the interest therein
of the Obligor and/or the Nominee, as the case may be, (ii) the Lien of due and
unpaid Assessments, (iii) covenants, conditions and restrictions, rights of way,
easements and other matters of public record, such exceptions appearing of
record being consistent with the normal business practices of FAC and

                                       12
<Page>

FRI or specifically disclosed in the applicable land sales registrations filed
with the applicable regulatory agencies and (iv) other matters to which
properties of the same type as those underlying such Loan are commonly subject
that do not materially interfere with the benefits of the security intended to
be provided by such Timeshare Property.

     "PERSON" shall mean any person or entity, including any individual,
corporation, limited liability company, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, governmental entity or
any other organization or entity, whether or not a legal entity.

     "PLAN" shall mean an employee benefit plan or other retirement arrangement
subject to ERISA or Section 4975 of the Internal Revenue Code of 1986, as
amended from time to time.

     "PLAN INSOLVENCY" shall mean, with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245 of
ERISA.

     "POA" shall mean each property owners' association or similar timeshare
owner body for a Timeshare Property Regime or Resort or portion thereof, in each
case established pursuant to the declarations, articles or similar charter
documents applicable to each such Timeshare Property Regime, Resort or portion
thereof.

     "POINTS" shall mean, with respect to any lodging unit at a Timeshare
Property Regime, the number of points of symbolic value assigned to such unit
pursuant to the FairShare Plus Program.

     "POOL PURCHASE AGREEMENT" shall mean the master purchase agreement relating
to the Loans, dated the date hereof, by and between the Company and the Issuer,
and all amendments thereof and supplements thereto including, with respect to
any Series, the related PPA Supplement.

     "POOL PURCHASE PRICE" shall mean, with respect to any Series, the Pool
Purchase Price as defined in the related PA Supplement.

     "POST OFFICE BOX" shall mean each post office box to which Obligors are
directed to mail payments in respect of the Loans of any Series.

     "PPA SUPPLEMENT" shall mean any supplement to the Pool Purchase Agreement
relating to a particular Series of Notes.

     "PURCHASE" shall mean, with respect to any Series, a Purchase as defined in
the related PA Supplement.

     "PURCHASER" shall have the meaning set forth in the preamble.

     "QUALIFIED SUBSTITUTE LOAN" shall mean, with respect to any Series, a
substitute Loan that (i) is an Eligible Loan on the applicable date of
substitution for such substitute Loan, (ii) on such date of substitution has a
Loan Rate not less than the Loan Rate of the substituted Loan and (iii) is not
selected in a manner adverse to the Purchaser or its assignees.

                                       13
<Page>

     "RECORDS" shall mean all copies of Loans (not including originals) and
other documents, books, records and other information (including without
limitation computer programs, tapes, discs, punch cards, data processing
software and related property and rights) maintained by the Seller or any of its
respective Affiliates (including without limitation each Originator, but not
including the Purchaser or the Issuer) with respect to Loans, the related
Transferred Assets and the related Obligors.

     "REORGANIZATION" shall mean, with respect to any Multiemployer Plan, the
condition that such Plan is in reorganization within the meaning of Section 4241
of ERISA.

     "REPORTABLE EVENT" shall mean any of the events described in Section 4043
of ERISA.

     "REPURCHASE DATE" shall mean, with respect to any Series, the Repurchase
Date as defined in the related PA Supplement.

     "REPURCHASE PRICE" shall mean, with respect to any Series, the Repurchase
Price as defined in the related PA Supplement.

     "RESERVATION SYSTEM" shall mean the system with respect to Timeshare
Properties pursuant to which a reservation for a particular location, time,
length of stay and unit type is received, accepted, modified or canceled.

     "RESERVE ACCOUNT" shall, with respect to any Series, mean any reserve
account established pursuant to the related Indenture Supplement.

     "RESORT" shall mean each resort or development listed on Schedule 2 (as
such Schedule 2 may be amended from time to time with the written consent of the
Company and the Seller in connection with proposed sales of Additional Loans
relating to resorts or developments with respect to which Loans have not
previously been sold under this Agreement).

     "SCHEDULED PAYMENT" shall mean each scheduled monthly payment of principal
and interest on a Loan.

     "SELLER" shall have the meaning set forth in the preamble.

     "SERIES" shall mean any Series of Notes issued and established pursuant to
an Indenture Supplement.

     "SERIES TERMINATION DATE" shall mean, with respect to any Series, the
Series Termination Date as defined in the related PA Supplement.

     "STATE" shall mean any of the 50 United States or the District of Columbia.

     "SUBSERVICER" shall have the meaning set forth in the Indenture and
Servicing Agreement.

     "SUBSERVICING AGREEMENT" shall have the meaning set forth in the Indenture
and Servicing Agreement.

                                       14
<Page>

     "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.

     "SUBSTITUTION ADJUSTMENT AMOUNT" shall, with respect to any Series, have
the meaning set forth in the related PA Supplement.

     "TIMESHARE PRICE" shall mean the original price of the Timeshare Property
paid by an Obligor, PLUS any accrued and unpaid interest and other amounts owed
by the Obligor.

     "TIMESHARE PROPERTY" shall mean the underlying ownership interest that is
the subject of a Loan, which ownership interest may be either a Fixed Week, a
UDI or the Points with respect thereto under the FairShare Plus Program.

     "TIMESHARE PROPERTY REGIME" shall mean any of the various interval
ownership regimes located at a Resort, each of which is an arrangement
established under applicable state law whereby all or a designated portion of a
development is made subject to a declaration permitting the transfer of
Timeshare Properties therein, which Timeshare Properties shall, in the case of
Fixed Weeks and UDIs, constitute real property under the applicable local law of
each of the jurisdictions in which such regime is located.

     "TIMESHARE UPGRADE" shall mean the upgrade by an Obligor of the Obligor's
existing Timeshare Property to an upgraded Timeshare Property.

     "TITLE CLEARING AGREEMENT" shall mean, with respect to certain Loans that
are Installment Contracts, each of (a) the Eleventh Amended and Restated Title
Clearing Agreement dated as of August 29, 2002, as amended, supplemented or
otherwise modified from time to time in accordance with the terms thereof, by
and among the Issuer, FRI, FAC, Lawyers Title Insurance Corporation, the
Collateral Agent and the other parties thereto; (b) the Ninth Amended and
Restated Title Clearing Agreement (Colorado) dated as of August 29, 2002, as
amended, supplemented or otherwise modified from time to time in accordance with
the terms thereof, by and among the Issuer, FRI, FAC, Colorado Land Title
Company, the Collateral Agent and the other parties thereto; (c) the Seventh
Amended and Restated Title Clearing Agreement (Westwinds) dated as of August 29,
2002, as amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof, by and among the Issuer, FRI, FAC, Lawyers
Title Insurance Corporation, the Collateral Agent and the other parties thereto;
(d) the Sixth Amended and Restated Nashville Title Clearing Agreement dated as
of August 29, 2002, as amended, supplemented or otherwise modified from time to
time in accordance with the terms thereof, by and among the Issuer, FRI, FAC,
Lawyers Title Insurance Corporation, the Collateral Agent and the other parties
thereto; (e) the Sixth Amended and Restated Seawatch Plantation Title Clearing
Agreement dated as of August 29, 2002, as amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof, by and among
the Issuer, FRI, FAC, Lawyers Title Insurance Corporation, the Collateral Agent
and the other parties thereto; (f) the Eighth Amended and Restated

                                       15
<Page>

Supplementary Trust Agreement (Arizona) dated as of August 29, 2002, as amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof, by and among the Issuer, FRI, FAC, First American Title Insurance
Corporation, the Collateral Agent and the other parties thereto; (g) the Second
Amended and Restated Nevada Title Clearing Agreement dated as of August 29,
2002, as amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof, by and among the Issuer, FRI, FAC, Lawyer's
Title of Nevada, Inc., the Collateral Agent and the other parties thereto; and
(h) such other title clearing agreements and other similar documents,
instruments and agreements which may be entered into from time to time by each
of FRI, FAC, the Issuer and the Collateral Agent (among other Persons) in
accordance with the transactions contemplated by this Agreement and other
Facility Documents relating to the Timeshare Properties.

     "TRANSFERRED ASSETS" shall mean, with respect to any Series, any and all
right, title and interest of the Seller in, to and under:

           (a)    the Loans from time to time, including without limitation
     the Initial Loans as of the close of business on the Cut-Off Date and the
     Additional Loans as of the close of business on the related Addition
     Cut-Off Dates and all Scheduled Payments, other Collections and other funds
     received in respect of such Initial Loans and Additional Loans on or after
     the Cut-Off Date or Addition Cut-Off Date, as applicable, and any other
     monies due or to become due on or after the Cut-Off Date or Addition
     Cut-Off Date, as applicable, in respect of any such Loans, and any security
     therefor;

           (b)    (i) the Timeshare Properties relating to the Loans and (ii)
     the Title Clearing Agreements and the FairShare Plus Program (including
     without limitation the FairShare Plus Agreement) to the extent that they
     relate to such Timeshare Properties;

           (c)    any Mortgages relating to the Loans;

           (d)    any Insurance Policies relating to the Loans;

           (e)    the Loan Files and other Records relating to the Loans;

           (f)    the Loan Conveyance Documents relating to the Loans;

           (g)    all interest, dividends, cash, instruments, financial assets
     and other investment property and other property from time to time
     received, receivable or otherwise distributed in respect of, or in exchange
     for, or on account of, the sale or other disposition of the Transferred
     Assets, and including all payments under Insurance Policies (whether or not
     any of the Seller, the Purchaser, any Originator, the Master Servicer, the
     Issuer or the Trustee is the loss payee thereof) or any indemnity, warranty
     or guaranty payable by reason of loss or damage to or otherwise with
     respect to any Transferred Assets, and any security granted or purported to
     be granted in respect of any Transferred Assets; and

           (h)    all proceeds of any of the foregoing property described in
     clauses (a) through (g).

                                       16
<Page>

     "TRENDWEST" shall mean Trendwest Resorts, Inc., a wholly-owned indirect
Subsidiary of Cendant.

     "TRUSTEE" shall mean Wachovia Bank, National Association, as Trustee under
the Indenture and Servicing Agreement, and its successors and assigns.

     "UCC" shall mean the Uniform Commercial Code, as amended from time to time,
as in effect in any specified jurisdiction.

     "UDI" shall mean an individual interest in fee simple (as tenants in common
with all other undivided interest owners) in a lodging unit or group of lodging
units at a Resort.

     "VB PARTNERSHIPS" shall have the meaning set forth in the preamble.

     "VB SUBSIDIARIES" shall have the meaning set forth in the preamble.

SECTION 2.   PURCHASE AND SALE OF LOANS.

     The Seller may from time to time sell and assign to the Company, and the
Company may from time to time Purchase from the Seller, all the Seller's right,
title and interest in, to and under the Loans listed on the Loan Schedule with
respect to the related PA Supplement. The principal terms of the Purchase and
sale of Loans for each Series shall be set forth in the related PA Supplement.

SECTION 3.   POOL PURCHASE PRICE.

     Provisions with respect to the Purchase and sale of the Loans for each
Series shall be set forth in the related PA Supplement.

     The purchase price for any Additional Loans and other related Transferred
Assets (the "ADDITIONAL POOL PURCHASE PRICE") conveyed to the Company under this
Agreement and the related PA Supplement on each Addition Date shall be a dollar
amount equal to the aggregate outstanding principal balance of such Additional
Loans sold on such date, subject to adjustment to reflect such factors as the
Company and the Seller mutually agree will result in an Additional Pool Purchase
Price equal to the fair market value of such Additional Loans and other related
Transferred Assets.

SECTION 4.   PAYMENT OF PURCHASE PRICE.

           (a)    CLOSING DATES. On the terms and subject to the conditions of
this Agreement and the related PA Supplement, payment of the Pool Purchase Price
for each Series shall be made by the Company on the related Closing Date in
immediately available funds to the Seller to such accounts at such banks as the
Seller shall designate to the Company not less than one Business Day prior to
the such Closing Date.

           (b)    MANNER OF PAYMENT OF ADDITIONAL POOL PURCHASE PRICE. On the
terms and subject to the conditions in this Agreement and the related PA
Supplement, the Company shall pay to the Seller, on each Business Day on which
any Additional Loans are purchased from the Seller by the Company pursuant to
Section 2 of the related PA Supplement, the Additional Pool

                                       17
<Page>

Purchase Price for such Additional Loans by paying such Additional Pool Purchase
Price to the Seller in cash.

           (c)    SCHEDULED PAYMENTS UNDER LOANS AND CUT-OFF DATE. The Company
shall be entitled to all Scheduled Payments, other Collections and all other
funds with respect to any Loan received on or after the related Cut-Off Date or
Addition Cut-Off Date, as applicable. The principal balance of each Loan as of
the related Cut-Off Date or Addition Cut-Off Date, as applicable, shall be
determined after deduction, in accordance with the terms of each such Loan, of
payments of principal received before such Cut-Off Date or Addition Cut-Off
Date.

SECTION 5.   CONDITIONS PRECEDENT TO SALE OF LOANS.

     No Purchase of Loans and related Transferred Assets shall be made hereunder
or under any PA Supplement on any date on which:

           (a)    the Company does not have sufficient funds available to pay
the related Pool Purchase Price or Additional Pool Purchase Price in cash; or

           (b)    an Insolvency Event has occurred and is continuing with
respect to the Seller or the Company.

SECTION 6.   REPRESENTATIONS AND WARRANTIES OF THE SELLER, FRI, FMB AND THE VB
             SUBSIDIARIES.

     (a)   GENERAL REPRESENTATIONS AND WARRANTIES OF THE SELLER, FRI, FMB AND
THE VB SUBSIDIARIES. The Seller, FRI, FMB and the VB Subsidiaries jointly and
severally represent and warrant as of each Closing Date and as of each Addition
Date, or as of such other date specified in such representation and warranty,
that:

           (i)    ORGANIZATION AND GOOD STANDING.

                  (A)   Each of the Seller, FRI, FMB and the VB Subsidiaries
           (other than the VB Partnerships) is a corporation duly organized,
           validly existing and in good standing under the laws of the state of
           its organization and has full corporate power, authority and legal
           right to own its properties and conduct its business as such
           properties are presently owned and such business is presently
           conducted, and to execute, deliver and perform its obligations under
           this Agreement, any related PA Supplement and each of the Facility
           Documents to which it is a party. Each of the Seller, FRI, FMB and
           the VB Subsidiaries (other than the VB Partnerships) is organized in
           the jurisdiction set forth in the preamble. Each of the Seller, FRI,
           FMB and the VB Subsidiaries (other than the VB Partnerships) is duly
           qualified to do business and is in good standing as a foreign
           corporation, and has obtained all necessary licenses and approvals in
           each jurisdiction in which failure to qualify or to obtain such
           licenses and approvals would render any Loan unenforceable by any of
           the Seller, FRI, FMB or the VB Subsidiaries (other than the VB
           Partnerships).

                                       18
<Page>

                  (B)   Each of the VB Partnerships is a general partnership
           duly organized and validly existing under the laws of the State of
           Florida and has full power, authority and legal right to own its
           properties and conduct its business as such properties are presently
           owned and such business is presently conducted, and to execute,
           deliver and perform its obligations under this Agreement, any related
           PA Supplement and each of the Facility Documents to which it is a
           party. Each of the VB Partnerships is duly qualified to do business
           and is in good standing and has obtained all necessary licenses and
           approvals in each jurisdiction in which failure to qualify or to
           obtain such licenses and approvals would render any Loan
           unenforceable by any of the VB Partnerships.

                  (C)   The name of each of the Seller, FRI, FMB, and the VB
           Subsidiaries set forth in the preamble of this Agreement is the
           correct legal name of such entity, and such name has not been changed
           in the past six years (except that a predecessor corporation of the
           Seller, Fairfield Acceptance Corporation, was merged with and into
           the Seller on July 13, 1998 and FRI changed its name from Fairfield
           Communities, Inc. to Fairfield Resorts, Inc. on June 26, 200l). None
           of the Seller, FRI, FMB or the VB Subsidiaries utilizes any trade
           names, assumed names, fictitious names or "doing business names."

           (ii)   DUE AUTHORIZATION AND NO CONFLICT. The execution, delivery
     and performance by each of the Seller, FRI, FMB and the VB Subsidiaries of
     each of the Facility Documents to which it is a party, and the consummation
     by each such party of the transactions contemplated hereby and under each
     other Facility Document to which it is a party, has been duly authorized by
     the Seller, FRI, FMB and the VB Subsidiaries, respectively, by all
     necessary corporate or partnership action, does not contravene (i) the
     Seller's, FRI's, FMB's or the VB Subsidiaries' charter or by-laws or
     partnership agreement, (ii) any law, rule or regulation applicable to the
     Seller, FRI or FMB or the VB Subsidiaries, (iii) any contractual
     restriction contained in any material indenture, loan or credit agreement,
     lease, mortgage, deed of trust, security agreement, bond, note, or other
     material agreement or instrument binding on any of the Seller, FRI, FMB or
     the VB Subsidiaries or (iv) any order, writ, judgment, award, injunction or
     decree binding on or affecting the Seller, FRI, FMB, the VB Subsidiaries or
     their properties (except where such contravention would not have a Material
     Adverse Effect with respect to such Persons or properties), and do not
     result in (except as provided in the Facility Documents) or require the
     creation of any Lien upon or with respect to any of their properties; and
     no transaction contemplated hereby requires compliance with any bulk sales
     act or similar law. Each of the Facility Documents to which the Seller,
     FRI, FMB or the VB Subsidiaries is a party have been duly executed and
     delivered on behalf of the Seller, FRI, FMB or the VB Subsidiaries, as
     applicable. To the extent that this representation is being made with
     respect to Title I of ERISA or Section 4975 of the Code, it is made subject
     to the assumption that none of the assets being used to purchase the Loans
     and Transferred Assets constitute assets of any Benefit Plan or Plan with
     respect to which the Seller is a party in interest or disqualified person.

           (iii)  GOVERNMENTAL AND OTHER CONSENTS. All approvals,
     authorizations, consents or orders of any court or governmental agency or
     body required in connection

                                       19
<Page>

     with the execution and delivery by the Seller, FRI, FMB or the VB
     Subsidiaries of this Agreement, any related PA Supplement or any of the
     other Facility Documents to which it is a party, the consummation by such
     party of the transactions contemplated hereby or thereby, the performance
     by such party of and the compliance by such party with the terms hereof or
     thereof, have been obtained, except where the failure so to do would not
     have a Material Adverse Effect with respect to such Party.

           (iv)   ENFORCEABILITY OF FACILITY DOCUMENTS. Each of the Facility
     Documents to which any of the Seller, FRI, FMB or the VB Subsidiaries is a
     party has been duly and validly executed and delivered by the Seller, FRI,
     FMB or the VB Subsidiaries, as applicable, and constitutes the legal, valid
     and binding obligation of the Seller, FRI, FMB or the VB Subsidiaries, as
     applicable, enforceable against it in accordance with its respective terms,
     except as enforceability may be subject to or limited by Debtor Relief Laws
     or by general principles of equity (whether considered in a suit at law or
     in equity).

           (v)    NO LITIGATION. Except as disclosed in Schedule 5 to this
     Agreement or to any Assignment, there are no proceedings or investigations
     pending, or to the knowledge of the Seller, FRI, FMB or the VB Subsidiaries
     threatened, against the Seller, FRI, FMB or the VB Subsidiaries before any
     court, regulatory body, administrative agency, or other tribunal or
     governmental instrumentality (A) asserting the invalidity of this Agreement
     or any of the other Facility Documents, (B) seeking to prevent the
     consummation of any of the transactions contemplated by this Agreement or
     any of the other Facility Documents, (C) seeking any determination or
     ruling that would adversely affect the performance by any of the Seller,
     FRI, FMB or the VB Subsidiaries of its obligations under this Agreement,
     any related PA Supplement or any of the other Facility Documents to which
     it is a party, (D) seeking any determination or ruling that would adversely
     affect the validity or enforceability of this Agreement or any of the other
     Facility Documents or (E) seeking any determination or ruling that would,
     if adversely determined, be reasonably likely to have a Material Adverse
     Effect with respect to such party.

           (vi)   GOVERNMENTAL REGULATIONS. Neither the Seller, FRI, FMB nor
     any of the VB Subsidiaries is (A) an "investment company" registered or
     required to be registered under the Investment Company Act of 1940, as
     amended, or (B) a "public utility company" or a "holding company," a
     "subsidiary company" or an "affiliate" of any public utility company within
     the meaning of Section 2(a)(5), 2(a)(7), 2(a)(8) or 2(a)(ii) of the Public
     Utility Holding Company Act of 1935, as amended.

           (vii)  MARGIN REGULATIONS. Neither the Seller, FRI, FMB nor any of
     the VB Subsidiaries is engaged, principally or as one of its important
     activities, in the business of extending credit for the purpose of
     purchasing or carrying any margin stock (as each such term is defined or
     used in any of Regulations T, U or X of the Board of Governors of the
     Federal Reserve System). No part of the proceeds of any of the notes issued
     by the Issuer has been used by the Seller, FRI, FMB or any of the VB
     Subsidiaries for so purchasing or carrying margin stock or for any purpose
     that violates or would be inconsistent with the provisions of any of
     Regulations T, U or X of the Board of Governors of the Federal Reserve
     System.

                                       20
<Page>

           (viii) LOCATION OF CHIEF EXECUTIVE OFFICE AND RECORDS. The principal
     place of business and chief executive office of FRI and FMB, and the office
     where FRI and FMB maintain all of their Records, is located at 8427 South
     Park Circle, Orlando, Florida 32819; the principal place of business and
     chief executive office of the Seller, and the office where the Seller
     maintains all of its Records, is 10750 West Charleston Blvd., Suite 130,
     Las Vegas, Nevada 89135; and the principal place of business and chief
     executive office of each of the VB Subsidiaries is located at 8427 South
     Park Circle, Orlando, Florida 32819. None of FRI, FMB, the VB Subsidiaries
     or the Seller has changed its principal place of business or chief
     executive office (or the office where such entity maintains all of its
     Records) during the previous six years (except that FRI and FMB changed
     their principal place of business and chief executive office from 8669
     Commodity Circle, Suite 200, Orlando, Florida 32819 to 8427 South Park
     Circle, Orlando, Florida 32819 on February 18, 2002; FAC changed its
     principal place of business and chief executive office from 11001 Executive
     Center Drive, Little Rock, Arkansas 72211 to 7730 West Sahara Avenue, Suite
     105, Las Vegas, Nevada 89117 in 1998, and from such address to the address
     set forth above in 2002; each of the VB Subsidiaries changed its principal
     place of business and chief executive office from 6400 North Andrews
     Avenue, Fort Lauderdale, Florida 33309 to the address set forth above in
     2001; Fairfield Acceptance Corporation, a predecessor corporation that was
     merged into the Seller, maintained its principal place of business and
     chief executive office (and all of its Records) in Pulaski County, Arkansas
     until July 13, 1998 and FRI changed its name from Fairfield Communities,
     Inc. to Fairfield Resorts, Inc. on June 26, 2001). At any time after the
     Initial Closing Date, upon 30 days' prior written notice to the Trustee as
     assignee of the Company and the Issuer, any of the Seller, FRI, FMB and the
     VB Subsidiaries may change its name or may change its type or its
     jurisdiction of organization to another jurisdiction within the United
     States and any of the VB Partnerships may change the location of its chief
     executive office, but only so long as all action necessary or reasonably
     requested by the Company to amend the existing financing statements and to
     file additional financing statements in all applicable jurisdictions to
     perfect the transfer of the Loans and the related Transferred Assets is
     taken.

           (ix)   LOCKBOX ACCOUNTS. Except in the case of any Lockbox Account
     pursuant to which only Collections in respect of Loans subject to a PAC or
     Credit Card Account are deposited, each of the Seller, FRI, FMB and the VB
     Subsidiaries, as applicable, has filed a standing delivery order with the
     United States Postal Service authorizing each Lockbox Bank to receive mail
     delivered to the related Post Office Box. The account numbers of all
     Lockbox Accounts, together with the names, addresses, ABA numbers and names
     of contact persons of all the Lockbox Banks maintaining such Lockbox
     Accounts and the related Post Office Boxes, are set forth in Schedule 4.
     From and after the Initial Closing Date, none of the Seller, FRI, FMB or
     the VB Subsidiaries shall have any right, title and/or interest in or to
     any of the Lockbox Accounts or the Post Office Boxes and will maintain no
     Lockbox accounts in their own names for the collection of payments in
     respect of the Loans. None of the Seller, FRI, FMB or the VB Subsidiaries
     has any lockbox or other accounts for the collection of payments in respect
     of the Loans other than the Lockbox Accounts.

                                       21
<Page>

           (x)    FACILITY DOCUMENTS. This Agreement and any PA Supplement are
     the only agreements pursuant to which the Seller sells the Loans and other
     related Transferred Assets to the Company. Each of the Seller, FRI, FMB and
     the VB Subsidiaries has furnished to the Company true, correct and complete
     copies of each Facility Document to which any of the Seller, FRI, FMB and
     the VB Subsidiaries is a party, each of which is in full force and effect.
     None of the Seller, FRI, FMB, any of the VB Subsidiaries or any of its
     Affiliates (not including the Purchaser or the Issuer) is in default
     thereunder in any material respect.

           (xi)   TAXES. Each of the Seller, FRI, FMB and the VB Subsidiaries
     has timely filed or caused to be filed all federal, state and local tax
     returns required to be filed by it, and has paid or caused to be paid all
     taxes shown to be due and payable on such returns or on any assessments
     received by it, other than any taxes or assessments the validity of which
     are being contested in good faith by appropriate proceedings and with
     respect to which the Seller, FRI, FMB or any of the VB Subsidiaries, as
     applicable, has set aside adequate reserves on its books in accordance with
     GAAP, and which proceedings have not given rise to any Lien.

           (xii)  ACCOUNTING TREATMENT. Each of the Seller, FRI, FMB and the VB
     Subsidiaries has accounted for the transactions contemplated in the
     Facility Documents to which it is a party in accordance with GAAP.

           (xiii) ERISA. There has been no (A) occurrence or expected
     occurrence of any Reportable Event with respect to any Benefit Plan subject
     to Title IV of ERISA of FRI, FMB, the Seller or any ERISA Affiliate, or any
     withdrawal from, or the termination, Reorganization or Plan Insolvency of
     any Multiemployer Plan or (B) institution of proceedings or the taking of
     any other action by Pension Benefit Guaranty Corporation or by FRI, FMB,
     the Seller or any ERISA Affiliate or any such Multiemployer Plan with
     respect to the withdrawal from, or the termination, Reorganization or Plan
     Insolvency of, any such Plan.

           (xiv)  NO ADVERSE SELECTION. No selection procedures materially
     adverse to the Company, the Issuer, the Noteholders, the Trustee or the
     Collateral Agent have been employed by any of the Seller, FRI, FMB or the
     VB Subsidiaries in selecting the Loans for inclusion in the Loan Pool on
     such Closing Date or Addition Date, as applicable.

           (xv)   FAIRSHARE PLUS PROGRAM.

                  (A)   As of each Closing Date or any Addition Date, as
           applicable, for each Timeshare Property Regime for which the related
           Timeshare Properties are comprised primarily of UDIs, the RATIO of
           (1) the total number of Points actually allocated to such Timeshare
           Property Regime pursuant to the FairShare Plus Program for the
           succeeding twelve-month period TO (2) the total number of Points
           allocable to available space in such Timeshare Property Regime over
           such twelve-month period, does not exceed 1.0 to 1.0.

                                       22
<Page>

                  (B)   On each Closing Date or any Addition Date, as
           applicable, for each owner of a UDI who is a member of the FairShare
           Plus Program, the RATIO, expressed as a percentage, of (1) the number
           of Points allocated to such owner in Timeshare Property Regime in
           return for assigning his Timeshare Property to the FairShare Plus
           Program trust TO (2) the total number of Points assigned to all UDI
           owners in such Timeshare Property Regime, does not exceed the
           percentage of such owner's undivided interest in such Timeshare
           Property Regime as described in such owner's Loan.

           (xvi)  [Reserved].

           (xvii) SEPARATE IDENTITY. Each of the Seller, FRI, the VB
     Subsidiaries and their respective Affiliates has observed the applicable
     legal requirements on its part for the recognition of the Company as a
     legal entity separate and apart from each of the Seller, FRI, the VB
     Subsidiaries and any of their respective Affiliates (other than the
     Company) and has taken all actions necessary on its part to be taken in
     order to ensure that the facts and assumptions relating to the Company set
     forth in the opinion of Orrick, Herrington & Sutcliffe LLP of even date
     herewith relating to substantive consolidation matters with respect to the
     Seller and the Company are true and correct; PROVIDED, HOWEVER, that none
     of the Seller, FRI, FMB or any of the VB Subsidiaries makes any
     representations or warranties in this Section 6(a)(xvii) with respect to
     the Company or the Issuer.

     (b)   REPRESENTATIONS AND WARRANTIES REGARDING THE LOANS. The Seller and
FRI jointly and severally represent and warrant to the Company as of the
applicable Cut-Off Date and Addition Cut-Off Date as to each Loan conveyed on
and as of each Closing Date or the related Addition Date, as applicable (except
as otherwise expressly stated) as follows:

           (i)    ELIGIBILITY. Such Loan is an Eligible Loan.

           (ii)   NO WAIVERS. The terms of such Loan have not been waived,
     altered, modified or extended in any respect other than (A) modifications
     entered into in accordance with Customary Practices and Credit Standards
     and Collections Policies that do not reduce the amount or extend the
     maturity of required Scheduled Payments and (B) modifications in the
     applicability of a PAC (which may result in a change in the related Loan
     Rate).

           (iii)  BINDING OBLIGATION. Such Loan is the legal, valid and binding
     obligation of the Obligor thereunder and is enforceable against the Obligor
     in accordance with its terms, except as such enforceability may be limited
     by Debtor Relief Laws or by general principles of equity (whether
     considered in a suit at law or in equity).

           (iv)   NO DEFENSES. Such Loan is not subject to any statutory right
     of rescission, setoff, counterclaim or defense, including without
     limitation the defense of usury.

           (v)    LAWFUL ASSIGNMENT. Such Loan was not originated in, and is
     not subject to the laws of, any jurisdiction the laws of which would make
     the transfer of the Loan under this Agreement or any PA Supplement
     unlawful.

                                       23
<Page>

           (vi)   COMPLIANCE WITH LAW. The Originator and the Seller have
     complied with requirements of all material federal, state and local laws
     (including without limitation usury, truth in lending and equal credit
     opportunity laws) applicable to such Loan in all material respects. The
     related Timeshare Property Regime is in compliance with any and all
     applicable zoning and building laws and regulations and any other laws and
     regulations relating to the use and occupancy of such Timeshare Property
     Regime, except where such noncompliance would not have a Material Adverse
     Effect with respect to the applicable Originator and the Seller. None of
     the Seller, FRI, FMB or the VB Subsidiaries has received notice of any
     material violation of any legal requirements applicable to such Timeshare
     Property Regime, except where such violation would not have a Material
     Adverse Effect with respect to the applicable Originator and the Seller.
     The Timeshare Property Regime related to such Loan complies with all
     applicable state statutes, including without limitation condominium
     statutes, timeshare statutes, HUD filings relating to interstate land sales
     (if applicable) and the requirements of any governmental authority or local
     authority having jurisdiction with respect to such Timeshare Property
     Regime, and constitutes a valid and conforming condominium and timeshare
     regime under the laws of the State in which the related Resort is located,
     except where such noncompliance would not have a Material Adverse Effect
     with respect to the applicable Originator and the Seller.

           (vii)  LOAN IN FORCE; NO SUBORDINATION. Such Loan is in full force
     and effect and has not been subordinated, satisfied in whole or in part or
     rescinded.

           (viii) CAPACITY OF PARTIES. All parties to such Loan had legal
     capacity to execute the Loan.

           (ix)   ORIGINAL LOANS. All original executed copies of such Loans
     are in the custody of the Custodian, except to the extent otherwise
     permitted pursuant to Section 6(b)(xiv).

           (x)    LOAN FORM/GOVERNING LAW. Such Loan was executed in
     substantially the form of one of the forms of Loan in Exhibit D (as such
     Exhibit D may be amended from time to time with the consent of the Seller
     and the Company), except for changes required by applicable law and certain
     other modifications that do not, individually or in the aggregate, affect
     the enforceability or collectibility of such Loan. In addition, such Loan
     was originated in and is governed by the laws of the State in which the
     related Resort is located.

           (xi)   INTEREST IN REAL PROPERTY. The Timeshare Property underlying
     such Loan is an interest in real property consisting of either a Fixed Week
     or a UDI, and (except for a Timeshare Property that is a Green Timeshare
     Property) such Timeshare Property has been deeded to the Nominee pursuant
     to the terms of one of the Title Clearing Agreements or has been deeded to
     the related Obligor in accordance with the requirements of the related Loan
     and applicable law.

           (xii)  ENVIRONMENTAL COMPLIANCE. Each Timeshare Property Regime
     related to a Loan is now, and at all times during FRI's ownership thereof
     (or the ownership of any

                                       24
<Page>

     Affiliate thereof other than the Company and the Issuer), has been free of
     contamination from any substance, material or waste identified as toxic or
     hazardous according to any federal, state or local law, rule, regulation or
     order governing, imposing standards of conduct with respect to, or
     regulating in any way the discharge, generation, removal, transportation,
     storage or handling of toxic or hazardous substances, materials or waste or
     air or water pollution (hereinafter referred to as "ENVIRONMENTAL LAWS"),
     including without limitation any PCB, radioactive substance, methane,
     asbestos, volatile hydrocarbons, petroleum products or wastes, industrial
     solvents or any other material or substance that now or hereafter may cause
     or constitute a health, safety or other environmental hazard to any person
     or property (any such substance together with any substance, material or
     waste identified as toxic or hazardous under any Environmental Law now in
     effect or hereinafter enacted shall be referred to herein as
     "CONTAMINANTS"), but excluding from the foregoing any levels of
     Contaminants at or below which such Environmental Laws do not apply ("DE
     MINIMUS LEVELS"). Neither FRI nor any Affiliate of FRI (other than the
     Company and the Issuer) has caused or suffered to occur any discharge,
     spill, uncontrolled loss or seepage of any petroleum or chemical product or
     any Contaminant (except for De Minimus Levels thereof) onto any property
     comprising or adjoining any Timeshare Property Regime, and neither FRI nor
     any Affiliate of FRI (other than the Company and the Issuer) nor any
     Obligor or occupant of all or part of any Timeshare Property Regime is now
     or has been involved in operations at the related Timeshare Property Regime
     that could lead to liability for FRI, the Company, any Affiliate of FRI or
     any other owner of such Timeshare Property Regime or the imposition of a
     Lien on such Timeshare Property Regime under any Environmental Law. No
     practice, procedure or policy employed by FRI (or any Affiliate thereof
     other than the Company and the Issuer) with respect to POAs for which FRI
     acts as the manager or, to the best knowledge of the Seller, by the manager
     of the POAs with respect to POAs managed by parties unaffiliated with FRI,
     violates any Environmental Law that, if enforced, would reasonably be
     expected to (A) have a Material Adverse Effect on such POA or the ability
     of such POA to do business, (B) have a Material Adverse Effect on the
     financial condition of the POA or (C) constitute grounds for the revocation
     of any license, charter, permit or registration that is material to the
     conduct of the business of the POA.

           Except as set forth in Schedule 3, (1) all property owned, managed,
     or controlled by FRI or any Affiliate of FRI (other than the Company and
     the Issuer) and located within a Resort is now, and at all times during
     FRI's ownership, management or control thereof (or the ownership,
     management or control of any Affiliate thereof (other than the Company and
     the Issuer)) has been free of contamination from any Contaminants, except
     for De Minimus Levels thereof, (2) neither FRI nor any Affiliate of FRI
     (other than the Company and the Issuer) has caused or suffered to occur any
     discharge, spill, uncontrolled loss or seepage of any Contaminants onto any
     property comprising or adjoining any of the Resorts, except for De Minimus
     Levels thereof, and (3) neither FRI nor any Affiliate of FRI (other than
     the Company and the Issuer) nor any Obligor or occupant of all or part of
     any of any Resort is now or previously has been involved in operations at
     any Resort that could lead to liability for FRI, the Company, any Affiliate
     of FRI or any other owner of any Resort or the imposition of a Lien on such
     Resort under any Environmental Law. None of the matters set forth in
     Schedule 3 will have a Material Adverse Effect with respect to the Company
     or its assignees or the interests of

                                       25
<Page>

     the Company or its assignees in the Loans. Each Resort, and the present use
     thereof, does not violate any Environmental Law in any manner that would
     materially adversely affect the value or use of such Resort or the
     performance by the POAs of their respective obligations under their
     applicable declarations, articles or similar charter documents. There is no
     condition presently existing, and to the best knowledge of FRI and the
     Seller no event has occurred or failed to occur with respect to any Resort,
     relating to any Contaminants or compliance with any Environmental Laws that
     would reasonably be expected to have a Materially Adverse Effect with
     respect to such Resort, including in connection with the present use of
     such Resort.

           (xiii) TAX LIENS. All taxes applicable to such Loan and the related
     Timeshare Property have been paid, except where the failure to pay such tax
     would not have a Material Adverse Effect with respect to the Seller or its
     assignees or the Purchaser or the collectibility or enforceability of the
     Loan. There are no delinquent tax liens in respect of the Timeshare
     Property underlying such Loan.

           (xiv)  LOAN FILES. The related Loan File contains the following Loan
     Documents (which may include microfiche or other electronic copies of the
     Loan Documents to the extent provided in the Custodial Agreement):

                  (A)   for Loans other than Loans described in clause (B)
           below, at least one original of each Loan (or, if the Loan and
           promissory note are contained in separate documents, an original of
           the promissory note); PROVIDED, HOWEVER, that the original Loan may
           have been removed from the Loan File in accordance with the Custodial
           Agreement for the performance of collection services and other
           routine servicing requirements; and

                  (B)   for Loans relating to Timeshare Properties located in
           Resorts in North Carolina or South Carolina with respect to which two
           originals of such Loans have been executed, each original Loan is in
           the Loan File, and each contains the following legend (whether by
           stamp or otherwise) on its face:

                  "THIS COPY IS ONE OF TWO ORIGINALS, AND WAS EXECUTED SOLELY
           FOR RECORDATION. TO THE EXTENT THAT POSSESSION OF THIS CONTRACT IS
           REQUIRED TO TRANSFER OR PERFECT A TRANSFER OF ANY INTEREST IN OR TO
           THIS CONTRACT, POSSESSION OF THE OTHER ORIGINAL HEREOF IS REQUIRED";

           and

                  (C)   for Loans with respect to which the related Timeshare
           Property has been deeded out to the related Obligor:

                  (1)   a copy of the deed for such Timeshare Property; and

                  (2)   the original recorded Mortgage (or a copy thereof, if
           applicable, for Mortgages that have been submitted for recording as
           set forth herein) and Assignments of Mortgages in favor of the
           Collateral Agent (or a copy of such

                                       26
<Page>

           recorded Mortgage or Assignment of Mortgage, as the case may be,
           certified to be a true and complete copy thereof, if the original of
           the recorded Mortgage or Assignment of Mortgage is lost or
           destroyed), PROVIDED that in the case of any Loan with respect to
           which the related Mortgage and/or deed has been removed from the Loan
           File for recording in the local real property recording office: (x)
           the original Mortgage shall not have been at such real property
           recording office more than (1) 180 days from the related loan closing
           date (in the case of Loans (other than Green Loans) relating to
           Timeshare Properties located in the State of Florida) or (2) 180 days
           from the date on which the related Timeshare Property is required to
           be deeded to an Obligor (in the case of Green Loans or Loans relating
           to Timeshare Properties located in any other State) and (y) in the
           case of any Loan (other than a Green Loan) relating to a Timeshare
           Property located in the State of Florida, the Loan File shall contain
           one or more certificates from FRI's applicable title agents in
           Florida to the effect that the related Mortgage has been delivered
           for purposes of recordation to the appropriate local real property
           recording office.

           (xv)   LOCKBOX ACCOUNTS. As of the applicable Cut-Off Date, the
     Obligor of such Loan either:

                  (A)   shall have been instructed to remit Payments thereunder
           to a Post Office Box for credit to a Lockbox Account or directly to a
           Lockbox Account, in each case maintained at a Lockbox Bank pursuant
           to the terms of a Lockbox Agreement; or

                  (B)   has entered into a PAC or Credit Card Account pursuant
           to which a deposit account of such Obligor is made subject to a
           pre-authorized debit in respect of Payments as they become due and
           payable, and the Seller has caused a Lockbox Bank to take all
           necessary and appropriate action to ensure that each such
           pre-authorized debit is credited directly to a Lockbox Account.

           (xvi)  OWNERSHIP INTEREST. As of the Closing Date or related
     Addition Date, as applicable, the Seller has good and marketable title to
     the Loan, free and clear of all Liens (other than Permitted Encumbrances).

           (xvii) INTEREST IN LOAN. Such Loan constitutes either a "general
     intangible," an "instrument," "chattel paper" or an "account" under the
     Uniform Commercial Code of the States of Delaware, Florida and New York.

           (xviii) RECORDATION OF ASSIGNMENTS. The collateral Assignment of
     Mortgage to the Collateral Agent relating to the Mortgage with respect to
     each Loan has been recorded or delivered for recordation simultaneously
     with the related Mortgage to the proper office in the jurisdiction in which
     the related Timeshare Property is located, except to the extent the related
     Timeshare Property is located in the State of Florida and the Seller shall
     have delivered an Opinion of Counsel to the effect that recordation of the
     Assignment of Mortgage is not necessary to perfect a security interest
     therein in favor of the Collateral Agent.

                                       27
<Page>

           (xix)  MATERIAL DISPUTES. To the actual knowledge of the Seller, the
     Loan is not subject to any material dispute.

           (xx)   GOOD TITLE; NO LIENS. Upon the Purchase hereunder occurring
     on such Closing Date or Addition Date, as applicable, the Company will be
     the lawful owner of, and have good title to, each Loan and all of the other
     related Transferred Assets that are the subject of such Purchase, free and
     clear of any Liens (other than any Permitted Encumbrances on the related
     Timeshare Properties). All Loans and related Transferred Assets are
     purchased without recourse to any of the Seller, FRI, FMB or the VB
     Subsidiaries except as described in this Agreement and any PA Supplement.
     Such Purchase by the Company under this Agreement and under any PA
     Supplement constitutes a valid and true sale and transfer for consideration
     (and not merely the grant of a security interest to secure a loan),
     enforceable against creditors of each of the Seller, FRI, FMB and the VB
     Subsidiaries, and no Loan or other related Transferred Assets that are the
     subject of such Purchase will constitute property of the Seller after such
     Purchase.

           (xxi)  SOLVENCY. Each of the Seller, FRI, FMB and the VB
     Subsidiaries, both prior to and immediately after giving effect to the
     Purchase of Loans hereunder and under any PA Supplement occurring on such
     Closing Date or Addition Date, as applicable, (A) is not insolvent (as such
     term is defined in Section 101(32)(A) of the Bankruptcy Code), (B) is able
     to pay its debts as they become due and (C) does not have unreasonably
     small capital for the business in which it is engaged or for any business
     or transaction in which it is about to engage.

           (xxii) POA RESERVES. The capital reserves and maintenance fee levels
     of the POAs related to each Timeshare Property Regime underlying the Loans
     Purchased on such Closing Date or Addition Date, as applicable, are
     adequate in light of the operating requirements of such POAs.

     (c)   REPRESENTATIONS AND WARRANTIES REGARDING THE LOAN FILES. The
Seller and FRI jointly and severally represent and warrant to the Company as of
each Closing Date and related Addition Date as to each Loan and the related Loan
File conveyed by it hereunder on and as of such Closing Date or related Addition
Date, as applicable (except as otherwise expressly stated) as follows:

           (i)    POSSESSION. On or immediately prior to each Closing Date or
     related Addition Date, as applicable, the Custodian will have possession of
     each original Loan and the related Loan File, and will have acknowledged
     such receipt and its undertaking to hold such original Loan and the related
     Loan File for purposes of perfection of the Collateral Agent's interest in
     such original Loan and the related Loan File; PROVIDED, HOWEVER, that the
     fact that any document not required to be in its respective Loan File
     pursuant to Section 6(b)(xiv) of this Agreement is not in the possession of
     the Custodian in its respective Loan File does not constitute a breach of
     this representation.

           (ii)   MARKING RECORDS. On or before each Closing Date or Addition
     Date, as applicable, the Seller shall have caused the portions of its
     computer files relating to the Loans sold on such date to the Company to be
     clearly and unambiguously marked to indicate that each such Loan has been
     conveyed on such date to the Company.

                                       28
<Page>

     (d)   SURVIVAL OF REPRESENTATIONS AND WARRANTIES. It is understood and
agreed that the representations and warranties contained in this Section 6 shall
remain operative and in full force and effect, shall survive the transfer and
conveyance of the Loans with respect to any Series by the Seller to the Company
under this Agreement and any PA Supplement, the conveyance of the Loans by the
Company to the Issuer pursuant to the Pool Purchase Agreement and any PPA
Supplement and the Grant of the Collateral by the Issuer to the Collateral Agent
and shall inure to the benefit of the Company, the Issuer, the Trustee, the
Collateral Agent and the Noteholders and their respective designees, successors
and assigns.

     (e)   INDEMNIFICATION OF THE COMPANY. FMB, each VB Subsidiary and FRI
shall jointly and severally indemnify, defend and hold harmless the Company
against any and all claims, losses and liabilities, including reasonable
attorneys' fees (the foregoing being collectively referred to as "INDEMNIFIED
AMOUNTS") that may at any time be imposed on, incurred by or asserted against
the Company as a result of a breach by any of FMB, any VB Subsidiary or FRI of
any of its respective representations, warranties or covenants hereunder. Except
as otherwise provided in Section 11(i), FRI shall pay to the Company, on demand,
any and all amounts necessary to indemnify the Company for (i) any and all
recording and filing fees in connection with the transfer of the Loans from the
Seller to the Company, and any and all liabilities with respect to, or resulting
from any delay in paying when due, any taxes (including sales, excise or
property taxes) payable in connection with the transfer of the Loans from the
Seller to the Company and (ii) costs, expenses and reasonable counsel fees in
defending against the same. The agreements in this Section 6(e) shall survive
the termination of this Agreement or any PA Supplement and the payment of all
amounts payable hereunder, under any PA Supplement and under the Loans. For
purposes of this Section 6(e), any reference to the Company shall include any
officer, director, employee or agent thereof, or any successor or assignee
thereof or of the Company.

SECTION 7.   REPURCHASES OR SUBSTITUTION OF LOANS FOR BREACH OF REPRESENTATIONS
             AND WARRANTIES.

     Provisions with respect to the repurchase or substitution of Loans of any
Series for breach of representations and warranties under this Agreement and any
PA Supplement shall be set forth in the related PA Supplement.

SECTION 8.   COVENANTS OF THE SELLER AND FRI.

           (a)    AFFIRMATIVE COVENANTS OF THE SELLER AND FRI. Each of the
Seller and FRI covenants and agrees that it will, at any time prior to the
Termination Date:

             (i)      COMPLIANCE WITH LAWS, ETC. Comply in all material respects
     with all applicable laws, rules, regulations and orders with respect to it,
     its business and properties, provisions of ERISA, the Internal Revenue Code
     and all applicable regulations and interpretations thereunder, and all
     Loans and Facility Documents to which it is a party.

             (ii)     PRESERVATION OF CORPORATE EXISTENCE. Preserve and maintain
     its corporate existence, rights, franchises and privileges in the
     jurisdiction of its incorporation, and qualify and remain qualified in good
     standing as a foreign corporation, and maintain all

                                       29
<Page>

     necessary licenses and approvals in each jurisdiction in which it does
     business, except where the failure to preserve and maintain such existence,
     rights, franchises, privileges, qualifications, licenses and approvals
     would not have a Material Adverse Effect with respect to it.

             (iii)    AUDITS. Upon at least two Business Days notice during
     regular business hours, permit the Company and/or its agents,
     representatives or assigns access:

                      (A)   to the offices and properties of the Seller or FRI
             in order to examine and make copies of and abstracts from all
             books, correspondence and Records of the Seller or FRI as
             appropriate to verify the Seller's or FRI's compliance with this
             Agreement, any PA Supplement or any other Facility Documents to
             which the Seller or FRI is a party and any other agreement
             contemplated hereby or thereby, and the Company and/or its agents,
             representatives and assigns may examine and audit the same and make
             photocopies, computer tapes or other computer replicas thereof, as
             appropriate, and each of the Seller and FRI will provide to the
             Company and/or its agents, representatives and assigns, at the
             expense of the Seller and FRI, such clerical and other assistance
             as may be reasonably requested in connection therewith; and

                      (B)   to the officers or employees of the Seller or FRI
             designated by the Seller or FRI, as applicable, in order to discuss
             matters relating to the Loans and the performance of the Seller or
             FRI hereunder, under any PA Supplement or any other Facility
             Documents to which the Seller or FRI is a party and any other
             agreement contemplated hereby or thereby, and under the other
             Facility Documents to which it is a party with the officers or
             employees of the Seller and FRI having knowledge of such matters.

             Each such audit shall be at the sole expense of the Seller and FRI.
     The Company shall be entitled to conduct such audits as frequently as it
     deems reasonable in the exercise of the Company's reasonable commercial
     judgment; PROVIDED, HOWEVER, that such audits shall not be conducted more
     frequently than annually unless an Event of Default or an Amortization
     Event shall have occurred. The Company and its agents, representatives and
     assigns also shall have the right to discuss the Seller's and FRI's affairs
     with the officers, employees and independent accountants of the Seller and
     FRI and to verify under appropriate procedures the validity, amount,
     quality, quantity, value and condition of, or any other matter relating to,
     the Loans and other related Transferred Assets.

             (iv)     [Reserved].

             (v)      PERFORMANCE AND COMPLIANCE WITH RECEIVABLES AND LOANS. At
     its expense, timely and fully perform and comply in all material respects
     with the Credit Standards and Collection Policies and Customary Practices
     with respect to the Loans and with all provisions, covenants and other
     promises required to be observed by the Seller or FRI under the Loans.

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<Page>

             (vi)     [Reserved].

             (vii)    OWNERSHIP INTEREST. Take such action with respect to each
     Loan as is necessary to ensure that the Company maintains a first priority
     ownership interest in such Loan and the other related Transferred Assets,
     in each case free and clear of any Liens arising through or under the
     Seller or FRI and, in the case of any Timeshare Properties, other than any
     Permitted Encumbrance thereon, and respond to any inquiries with respect to
     ownership of a Loan sold by it hereunder by stating that, from and after
     the Initial Closing Date or related Addition Date, as applicable, it is no
     longer the owner of such Loan and that ownership of such Loan has been
     transferred to the Company.

             (viii)   INSTRUMENTS. Not remove any portion of the Loans or
     related Transferred Assets with respect to any Series that consists of
     money or is evidenced by an instrument, certificate or other writing from
     the jurisdiction in which it was held under the related Custodial Agreement
     unless the Company shall have first received an Opinion of Counsel to the
     effect that the Company shall continue to have a first-priority perfected
     ownership or security interest with respect to such property after giving
     effect to such action or actions.

             (ix)     NO RELEASE. Not take any action, and use its best efforts
     not to permit any action to be taken by others, that would release any
     Person from such Person's covenants or obligations under any document,
     instrument or agreement relating to the Loans or the other Transferred
     Assets, or result in the hypothecation, subordination, termination or
     discharge of, or impair the validity or effectiveness of, any such
     document, instrument or agreement, except as expressly provided in this
     Agreement or any PA Supplement or such other instrument or document.

             (x)      INSURANCE AND CONDEMNATION.

                      (A)   FRI (1) shall with respect to each Resort which it
             develops or which is developed by its subsidiaries (other than the
             Purchaser or the Issuer), cause the governing document of each such
             POA at the time of creation to contain covenants requiring
             insurance as described in this paragraph and (2) so long as FRI or
             an Affiliate (other than the Purchaser or the Issuer) maintains
             primary or substantial responsibility for the management,
             administration or other services of a similar nature with respect
             to such Resort, FRI shall do or cause to be done all things which
             it may accomplish with a reasonable amount of cost or effort to
             cause each POA to maintain the insurance described in this
             paragraph. The insurance referred to clauses in (1) and (2) above
             is "all-risk" property and general liability insurance with
             financially sound and reputable insurers providing coverage in
             scope and amount that (x) satisfy the requirements of the
             declarations (or any similar charter document) governing the POA
             for the maintenance of such insurance policies and (y) are at least
             consistent with the scope and amount of such insurance coverage
             obtained by prudent POAs and/or management of other similar
             developments in the same jurisdiction. So long as FRI or an
             Affiliate other than the Purchaser or the Issuer maintains primary
             or substantial responsibility for the management, administration or
             other services of a similar

                                       31
<Page>

             nature with respect to such Resort and possesses the right to
             direct the application of insurance proceeds, FRI shall use its
             best efforts to apply the proceeds of any such insurance policies
             in the manner specified in the related declarations (or any similar
             charter document) governing the POA and/or any similar charter
             documents of such POA (which exercise of best efforts shall include
             voting as a member of the POA or as a proxy or attorney-in-fact for
             a member). For the avoidance of doubt, the parties acknowledge that
             the ultimate discretion and control relating to the maintenance of
             any such insurance policies is vested in the POA in accordance with
             the respective declaration (or any similar charter document)
             relating to each Timeshare Property Regime.

                      (B)   Each of FAC and FRI shall remit to the Collection
             Account the portion of any proceeds received pursuant to a
             condemnation of property in any Resort relating to any Timeshare
             Property to the extent the Obligors are required to make such
             remittance under the terms of one or more Loans that have been sold
             to the Company hereunder and under the related PA Supplement.

             (xi)     SEPARATE IDENTITY. Take such action (and cause FMB and the
     VB Subsidiaries to take such action) as is necessary to ensure compliance
     with Section 6(a)(xvii), including taking all actions necessary on its part
     to be taken in order to ensure that the facts and assumptions relating to
     the Company set forth in the opinion of Orrick, Herrington & Sutcliffe LLP
     of even date herewith relating to substantive consolidation matters with
     respect to the Seller and the Company are true and correct.

             (xii)    COMPUTER FILES. Mark or cause to be marked each Loan in
     its computer files as described in Section 6(c)(ii) and deliver to the
     Company, the Issuer, the Trustee and the Collateral Agent a copy of the
     Loan Schedule for each Series as amended from time to time.

             (xiii)   TAXES. File or cause to be filed, and cause each of its
     Affiliates with whom it shares consolidated tax liability to file, all
     federal, state and local tax returns that are required to be filed by it,
     except where the failure to file such returns could not reasonably be
     expected to have a Material Adverse Effect with respect to the Purchaser,
     the Seller or FRI, or otherwise be reasonably expected to expose the
     Purchaser, the Seller or FRI to material liability. Each of the Seller and
     FRI will pay or cause to be paid all taxes shown to be due and payable on
     such returns or on any assessments received by it, other than any taxes or
     assessments the validity of which are being contested in good faith by
     appropriate proceedings and with respect to which the Seller, FRI or the
     applicable Affiliate has set aside adequate reserves on its books in
     accordance with GAAP, and which proceedings could not reasonably be
     expected to have a Material Adverse Effect with respect to the Purchaser,
     the Seller or FRI, or otherwise be reasonably expected to expose the
     Purchaser, the Seller or FRI to material liability.

             (xiv)    FACILITY DOCUMENTS. Comply in all material respects with
     the terms of, and employ the procedures outlined under, this Agreement, any
     PA Supplement and all other Facility Documents to which it is a party, and
     take all such action as may be from

                                       32
<Page>

     time to time reasonably requested by the Company to maintain this
     Agreement, any PA Supplement and all such other Facility Documents in full
     force and effect.

             (xv)     LOAN SCHEDULE. With respect to any Series, promptly amend
     the applicable Loan Schedule to reflect terms or discrepancies that become
     known after each Closing Date or any Addition Date, and promptly notify the
     Company, the Issuer, the Trustee and the Collateral Agent of any such
     amendments.

             (xvi)    SEGREGATION OF COLLECTIONS. Prevent, to the extent within
     its control, the deposit into the Collection Account or any Reserve Account
     of any funds other than Collections in respect of the Loans with respect to
     any Series, and to the extent that, to its knowledge, any such funds are
     nevertheless deposited into the Collection Account or any Reserve Account,
     promptly identify any such funds to the Master Servicer for segregation and
     remittance to the owner thereof.

             (xvii)   MANAGEMENT OF RESORTS. The Seller hereby covenants and
     agrees that it will cause the Originator with respect to each Resort (to
     the extent that such Originator is responsible for maintaining or managing
     such Resort) to do or cause to be done all things that it may accomplish
     with a reasonable amount of cost or effort in order to maintain such Resort
     (including without limitation all grounds, waters and improvements thereon
     and all other facilities related thereto) in at least as good condition,
     repair and working order as would be customary for prudent managers of
     similar timeshare properties.

     (b)     NEGATIVE COVENANTS OF THE SELLER AND FRI. Each of the Seller and
FRI covenants and agrees that it will not, at any time prior to the final Series
Termination Date without the prior written consent of the Company:

             (i)      SALES, LIENS, ETC. AGAINST LOANS AND TRANSFERRED ASSETS.
     Except for the transfers hereunder, sell, assign (by operation of law or
     otherwise) or otherwise dispose of, or create or suffer to exist, any Lien
     arising through or under it (other than, in the case of any Timeshare
     Properties, any Permitted Encumbrances thereon) upon or with respect to any
     Loan or other Transferred Asset or any interest therein. Each of FRI and
     the Seller shall immediately notify the Company of the existence of any
     Lien arising through or under it on any Loan or other Transferred Asset.

             (ii)     EXTENSION OR AMENDMENT OF LOAN TERMS. Extend, amend, waive
     or otherwise modify the terms of any Loan (other than as a result of a
     Timeshare Upgrade or in accordance with Customary Practices) or permit the
     rescission or cancellation of any Loan, whether for any reason relating to
     a negative change in the related Obligor's creditworthiness or inability to
     make any payment under the Loan or otherwise.

             (iii)    CHANGE IN BUSINESS OR CREDIT STANDARDS OR COLLECTION
     POLICIES. (A) Make any change in the character of its business or (B) make
     any change in the Credit Standards and Collection Policies or (C) deviate
     from the exercise of Customary Practices, which change or deviation would,
     in any such case, materially impair the value or collectibility of any
     Loan.

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<Page>

             (iv)     CHANGE IN PAYMENT INSTRUCTIONS TO OBLIGORS. Add or
     terminate any bank as a bank holding any account for the collection of
     payments in respect of the Loans from those listed in Exhibit E or make any
     change in its instructions to Obligors regarding payments to be made to any
     Lockbox Account at a Lockbox Bank, unless the Company and the Trustee shall
     have received (A) 30 days' prior written notice of such addition,
     termination or change, (B) written confirmation from the Seller or FRI
     that, after the effectiveness of any such termination, there will be at
     least one Lockbox in existence and (C) prior to the date of such addition,
     termination or change, (1) executed copies of Lockbox Agreements executed
     by each new Lockbox Bank, the Seller, the Company, the Master Servicer and
     the Trustee and (2) copies of all agreements and documents signed by either
     the Company or the respective Lockbox Bank with respect to any new Lockbox
     Account.

             (v)      CHANGE IN CORPORATE NAME, ETC. Make any change to its name
     or its type or jurisdiction of organization (or, in the case of the VB
     Partnerships, change the location of its chief executive office) that
     existed on the Initial Closing Date without providing at least 30 days'
     prior written notice to the Company and the Trustee and taking all action
     necessary or reasonably requested by the Trustee to amend its existing
     financing statements and file additional financing statements in all
     applicable jurisdictions as are necessary to maintain the perfection of the
     security interest of the Company.

             (vi)     ERISA MATTERS. (A) Engage or permit any ERISA Affiliate to
     engage in any prohibited transaction for which an exemption is not
     available or has not previously been obtained from the U.S. Department of
     Labor; (B) permit to exist any accumulated funding deficiency (as defined
     in Section 302(a) of ERISA and Section 412(a) of the Internal Revenue Code)
     or funding deficiency with respect to any Benefit Plan other than a
     Multiemployer Plan; (C) fail to make any payments to any Multiemployer Plan
     that the Seller, FRI or any ERISA Affiliate may be required to make under
     the agreement relating to such Multiemployer Plan or any law pertaining
     thereto; (D) terminate any Benefit Plan so as to result in any liability;
     (E) permit to exist any occurrence of any Reportable Event that represents
     a material risk of a liability of the Seller, FRI or any ERISA Affiliate
     under ERISA or the Internal Revenue Code; PROVIDED, HOWEVER, that the ERISA
     Affiliates of the Seller and FRI may take or allow such prohibited
     transactions, accumulated funding deficiencies, payments, terminations and
     Reportable Events described in clauses (A) through (E) above so long as
     such events occurring within any fiscal year of the Seller or FRI, in the
     aggregate, involve a payment of money by or an incurrence of liability of
     any such ERISA Affiliate (collectively, "ERISA LIABILITIES") in an amount
     that does not exceed $2,000,000 or otherwise result in liability that would
     result in imposition of a lien.

             (vii)    TERMINATE OR REJECT LOANS. Without limiting the
     requirements of Section 8(b)(ii), terminate or reject any Loan prior to the
     end of the term of such Loan, whether such rejection or early termination
     is made pursuant to an equitable cause, statute, regulation, judicial
     proceeding or other applicable law unless, prior to such termination or
     rejection, such Loan and any related Transferred Assets have been
     repurchased by the Seller pursuant to Section 7 of the related PA
     Supplement.

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<Page>

             (viii)   FACILITY DOCUMENTS. Except as otherwise permitted under
     Section 8(b)(ii), (A) terminate, amend or otherwise modify any Facility
     Document to which it is a party or grant any waiver or consent thereunder
     or (B) terminate, amend or otherwise modify the FairShare Plus Agreement;
     PROVIDED, HOWEVER, that (1) the Title Clearing Agreements may be amended
     for the purposes of (x) making additional properties subject thereto, (y)
     making an Affiliate of FRI a party thereto having the same rights and
     obligations thereunder as FRI or (z) identifying a separate pool of loans
     (which shall not include Loans sold to the Company hereunder) to be sold or
     pledged to secure debt under a pooling or financing arrangement similar to
     that evidenced by the Indenture and Servicing Agreement, and (2) the
     FairShare Plus Agreement may be amended from time to time (x) to substitute
     or add additional parties thereto, (y) to comply with state and federal
     laws or regulations or (z) for any other purpose, PROVIDED that with
     respect to this Section 8(b)(viii), FRI or the Seller furnishes to the
     Company, the Issuer and the Trustee an Opinion of Counsel to the effect
     that such amendment or modification will not adversely affect in any
     material respect the respective interests of the Company, the Issuer, the
     Trustee or the Collateral Agent (if applicable) in the Loans and other
     Transferred Assets.

             (ix)     INSOLVENCY PROCEEDINGS. Institute Insolvency Proceedings
     with respect to the Company or the Issuer or consent to the institution of
     Insolvency Proceedings against the Company or the Issuer, or take any
     corporate action in furtherance of any such action.

SECTION 9.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Company represents and warrants as of each Closing Date and Addition
Date, or as of such other date specified in such representation and warranty,
that:

           (a)    The Company is a limited liability company duly formed,
validly existing and in good standing under the laws of the State of Delaware
and has full limited liability company power, authority, and legal right to own
its properties and conduct its business as such properties are presently owned
and as such business is presently conducted, and to execute, deliver and perform
its obligations under this Agreement and any PA Supplement. The Company is duly
qualified to do business and is in good standing as a foreign entity, and has
obtained all necessary licenses and approvals in each jurisdiction necessary to
carry on its business as presently conducted and to perform its obligations
under this Agreement and any PA Supplement. One hundred percent (100%) of the
outstanding membership interests of the Company is directly owned (both
beneficially and of record) by FAC. Such membership interests are validly
issued, fully paid and nonassessable and there are no options, warrants or other
rights to acquire membership interests from the Company.

           (b)    The execution, delivery and performance of this Agreement and
any PA Supplement by the Company and the consummation by the Company of the
transactions provided for in this Agreement and any PA Supplement have been duly
approved by all necessary limited liability company action on the part of the
Company.

           (c)    This Agreement and any PA Supplement constitutes the legal,
valid and binding obligation of the Company, enforceable against it in
accordance with its terms, except as

                                       35
<Page>

such enforceability may be subject to or limited by Debtor Relief Laws and
except as such enforceability may be limited by general principles of equity.

           (d)    The execution and delivery by the Company of this Agreement
and any PA Supplement, the performance by the Company of the transactions
contemplated hereby and the fulfillment by the Company of the terms hereof
applicable to the Company will not conflict with, violate, result in any breach
of the material terms and provisions of, or constitute (with or without notice
or lapse of time or both) a material default under any provision of any existing
law or regulation or any order or decree of any court applicable to the Company
or its certificate of formation or limited liability company agreement or any
material indenture, contract, agreement, mortgage, deed of trust, or other
material instrument to which the Company is a party or by which it or its
properties is bound.

           (e)    There are no proceedings or investigations pending, or to the
knowledge of the Company threatened, against the Company before any court,
regulatory body, administrative agency, or other tribunal or governmental
instrumentality (A) asserting the invalidity of this Agreement or any PA
Supplement, (B) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or any PA Supplement, (C) seeking any
determination or ruling that, in the reasonable judgment of the Company, would
adversely affect the performance by the Company of its obligations under this
Agreement or any PA Supplement or (D) seeking any determination or ruling that
would adversely affect the validity or enforceability of this Agreement or any
PA Supplement.

           (f)    All approvals, authorizations, consents, orders or other
actions of any person or entity or any governmental body or official required in
connection with the execution and delivery of this Agreement and any PA
Supplement by the Company, the performance by it of the transactions
contemplated hereby and the fulfillment by it of the terms hereof, have been
obtained and are in full force and effect.

           (g)    The Company is solvent and will not become insolvent
immediately after giving effect to the transactions contemplated by this
Agreement and any PA Supplement, the Company has not incurred debts beyond its
ability to pay and, immediately after giving effect to the transactions
contemplated by this Agreement and any PA Supplement, the Company shall have an
adequate amount of capital to conduct its business in the foreseeable future.

SECTION 10.  COVENANTS OF THE COMPANY.

             The Company hereby acknowledges that the parties to the Facility
Documents are entering into the transactions contemplated by the Facility
Documents in reliance upon the Company's identity as a legal entity separate
from the Seller, FRI, the VB Subsidiaries and their respective Affiliates. From
and after the date hereof until the final Series Termination Date under any
Indenture Supplement, the Company will take such actions as shall be required in
order that:

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

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<Page>

             (b)   The Company will maintain corporate records and books of
account separate from those of the Seller, FRI, the VB Subsidiaries and their
respective Affiliates and telephone numbers and stationery that are separate and
distinct from those of the Seller, FRI, the VB Subsidiaries and their respective
Affiliates;

             (c)   The Company's assets will be maintained in a manner that
facilitates their identification and segregation from those of any of the
Seller, FRI, the VB Subsidiaries and their respective Affiliates;

             (d)   The Company will observe corporate formalities in its
dealings with the public and with the Seller, FRI, the VB Subsidiaries and their
respective Affiliates and, except as contemplated by the Facility Documents,
funds or other assets of the Company will not be commingled with those of any of
the Seller, FRI, the VB Subsidiaries and their respective Affiliates. The
Company will at all times, in its dealings with the public and with the Seller,
FRI, the VB Subsidiaries and their respective Affiliates, hold itself out and
conduct itself as a legal entity separate and distinct from the Seller, FRI, the
VB Subsidiaries and their respective Affiliates. The Company will not maintain
joint bank accounts or other depository accounts to which any of the Seller,
FRI, the VB Subsidiaries and their respective Affiliates (other than the Master
Servicer) has independent access;

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

             (f)   Not less than one member of the Company's board of directors
will be an Independent Director. The Company will observe those provisions in
its limited liability company agreement that provide that the Company'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 Company unless the Independent
Director and all other members of the Company's board of directors unanimously
approve the taking of such action in writing prior to the taking of such action;

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

             (h)   Except as contemplated by the Facility Documents, the Company
will not hold itself out to be responsible for the debts of any of the Seller,
FRI, the VB Subsidiaries and their respective Affiliates.

SECTION 11.  MISCELLANEOUS.

         (a)   AMENDMENT. This Agreement may be amended from time to time or the
provisions hereof may be waived or otherwise modified by the parties hereto by
written agreement signed by the parties hereto; PROVIDED, HOWEVER, that no such
amendment, waiver or modification shall be effective without the prior written
consent of the Trustee.

         (b)   ASSIGNMENT. The Company has the right to assign its interest
under this Agreement and any PA Supplement as may be required to effect the
purposes of the Pool

                                       37
<Page>

Purchase Agreement without the consent of the Seller or FRI, and the assignee
shall succeed to the rights hereunder of the Company. The Seller agrees to
perform its obligations hereunder for the benefit of the Issuer, the Trustee,
the Collateral Agent and the Noteholders, agrees that such parties are intended
third party beneficiaries of this Agreement and agrees that the Trustee (or the
Collateral Agent) and (subject to the terms and conditions of the Indenture and
Servicing Agreement and any applicable Indenture Supplement) the Noteholders may
enforce the provisions of this Agreement and any PA Supplement, exercise the
rights of the Company and enforce the obligations of the Seller hereunder
without the consent of the Company.

         (c)   COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which counterparts shall be deemed to be an original, and
such counterparts shall constitute but one and the same instrument.

         (d)   TERMINATION. The obligations of each of the Seller and FRI under
this Agreement and any PA Supplement shall survive the sale of the Loans to the
Company and the Company's transfer of the Loans and other related Transferred
Assets to the Issuer.

         (e)   GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PRINCIPLES.

         (f)   NOTICES. All demands and notices hereunder shall be in writing
and shall be deemed to have been duly given if personally delivered at or mailed
by certified mail, postage prepaid and return receipt requested, or by express
delivery service, to (i) in the case of the Seller, Fairfield Acceptance
Corporation-Nevada, 10750 West Charleston Blvd., Suite 130, Las Vegas, Nevada
89135, Attention: President, or such other address as may hereafter be furnished
to the Company and FRI in writing by the Seller, (ii) in the case of FRI, FMB
and the VB Subsidiaries, c/o Fairfield Resorts, Inc., 8427 South Park Circle,
Orlando, Florida 32819, Attention: President, or such other address as may
hereafter be furnished to the Seller or the Company in writing by FRI, and (c)
in the case of the Company, Sierra Deposit Company, LLC, 10750 West Charleston
Blvd., Suite 130, Mailstop 2067, Las Vegas, Nevada 89135, Attention: President,
or such other address as may hereafter be furnished to the Seller or FRI in
writing by the Company.

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

         (h)   SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon each
of the Seller, FRI, the VB Subsidiaries, the VB Partnerships and the Company and
their respective permitted successors and assigns, and shall inure to the
benefit of each of the Seller, FRI, the VB Subsidiaries, the VB Partnerships and
the Company and each of the Issuer, the Trustee and the Collateral Agent to the
extent explicitly contemplated hereby.

                                       38
<Page>

         (i)   COSTS, EXPENSES AND TAXES.

             (i)      Each of the Seller and FRI jointly and severally agrees to
     pay on demand to the Company all reasonable costs and expenses, if any,
     incurred or reimbursed (or to be reimbursed) by the Company (including
     reasonable counsel fees and expenses) in connection with the enforcement or
     preservation of the rights and remedies under this Agreement and any PA
     Supplement.

             (ii)     Each of the Seller and FRI jointly and severally agrees to
     pay, indemnify and hold the Company harmless from and against any and all
     stamp, sales, excise and other taxes and fees payable or determined to be
     payable by or reimbursed (or to be reimbursed) by the Company in connection
     with the execution, delivery, filing and recording of this Agreement or any
     PA Supplement, and against any liabilities with respect to or resulting
     from any delay in paying or omission to pay such taxes and fees.

         (j)   NO BANKRUPTCY PETITION. Each of the Seller, each VB Subsidiary,
each VB Partnership and FRI covenants and agrees not to institute against the
Company or the Issuer, or join any other person in instituting against the
Company or the Issuer, any proceeding under any Debtor Relief Law.

         (k)   TREATMENT OF TIMESHARE UPGRADES. Notwithstanding anything in this
Agreement to the contrary (but subject to the other provisions of this
paragraph), the Seller (or the Master Servicer on the Seller's behalf) may
upgrade any Timeshare Property by entering into a new Loan with the related
Obligor, but only if the proceeds of such new Loan are used to prepay all
obligations in full of such Obligor under the existing Loan (the proceeds of
which shall be the property of the Company). Upon its creation, the new Loan
created by such Timeshare Upgrade shall not be property of the Company, but may
be sold by the Seller to the Company as an Additional Loan pursuant to the terms
and conditions of this Agreement and any PA Supplement. The parties hereto
intend that the Seller (or the Master Servicer on the Seller's behalf) will not
upgrade a Timeshare Property pursuant to this Section 11(k) in order to provide
direct or indirect assurance to the Seller, the Trustee or any Noteholder
against loss by reason of the bankruptcy or insolvency (or other credit
condition) of, or default by, the Obligor on, or the uncollectibility of, any
Loan.

         (l)   ADDITION OF KONA HAWAIIAN VACATION OWNERSHIP, LLC.
Notwithstanding anything to the contrary in this Agreement, the parties hereto
may amend this Agreement in writing without the consent of the Trustee to add
Kona Hawaiian Vacation Ownership, LLC ("KONA") as an originator of Loans
hereunder and under any PA Supplement and the other Facility Documents;
PROVIDED, that under any such amendment, Kona shall agree to representations,
warranties and covenants substantially similar to the representations,
warranties and covenants agreed to by FMB hereunder (with such variations as may
be necessary or appropriate given Kona's form and jurisdiction of organization,
the terms of the programs governing its related Timeshare Properties, or the
location of its related Resorts); and PROVIDED, FURTHER, that each of the
conditions precedent to the sale of Loans described in Section 5 hereof, and to
the sale of Additional Loans described in Section 2(d) of each PA Supplement
existing on the date of such amendment and each of the conditions precedent to
closing described in clauses (d), (e), (f), (g), (h) (with respect to the "true
sale" opinion only) and (k) (with respect to any applicable jurisdiction) of
Section 3.3 of the Note Purchase Agreement, dated as of August 29, 2002,

                                       39
<Page>

among the Issuer, the Purchaser, as depositor, FAC, as master servicer, Cendant
Corporation, as performance guarantor, Fleet Securities, Inc, as deal agent, and
each of the conduits, alternate investors and class agents named therein, shall
have been satisfied with respect to Kona prior to the effectiveness of any such
amendment.

                                       40
<Page>

     IN WITNESS WHEREOF, the parties have caused their names to be signed hereto
by their respective officers thereunto duly authorized, all as of the day and
year first above written.

                                          FAIRFIELD ACCEPTANCE CORPORATION -
                                          NEVADA

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: President and Treasurer

                                          FAIRFIELD RESORTS, INC.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Senior Vice President and
                                                    Assistant Treasurer

                                          FAIRFIELD MYRTLE BEACH, INC.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Senior Vice President and
                                                    Assistant Treasurer

                                          SEA GARDENS BEACH AND
                                          TENNIS RESORT, INC.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Senior Vice President and
                                                    Assistant Treasurer

                          [Signature page for FAC MLPA]

<Page>

                                          VACATION BREAK RESORTS, INC.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Assistant Treasurer

                                          VACATION BREAK RESORTS AT
                                          STAR ISLAND, INC.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Senior Vice President and
                                                    Assistant Treasurer

                                          PALM VACATION GROUP,
                                          by its General Partners:

                                          Vacation Break Resorts at Palm Aire,
                                          Inc.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Senior Vice President and
                                                    Assistant Treasurer

                                          Palm Resort Group, Inc.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Senior Vice President and
                                                    Assistant Treasurer

                          [Signature page for FAC MLPA]

<Page>

                                          OCEAN RANCH VACATION GROUP,
                                          by its General Partners:

                                          Vacation Break at Ocean Ranch, Inc.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Senior Vice President and
                                                    Assistant Treasurer

                                          Ocean Ranch Development, Inc.

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: Senior Vice President and
                                                    Assistant Treasurer

                                          SIERRA DEPOSIT COMPANY, LLC

                                          By:      /s/ Ralph E. Turner
                                             -----------------------------------
                                             Name: Ralph E. Turner
                                             Title: President and Treasurer

                          [Signature page for FAC MLPA]

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