Document:

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EXHIBIT 10.20

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                  AMENDED AND RESTATED NOTE PURCHASE AGREEMENT
                (CLASS A-1 TERM NOTES AND CLASS A-2 TERM NOTES),

                           dated as of July 10, 2008,

                                      among

                              FOLIO FUNDING II, LLC

                            as Issuer and Purchaser,

                       CONSUMER PORTFOLIO SERVICES, INC.,

                                   as Seller,

                       CITIGROUP FINANCIAL PRODUCTS INC.,

                   as Note Purchaser and Administrative Agent

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                  AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

                  THIS AMENDED AND RESTATED NOTE PURCHASE AGREEMENT, dated as of
July 10, 2008 (as further amended, supplemented, restated or otherwise modified
from time to time in accordance with the terms hereof, this "AGREEMENT"), is
made among FOLIO FUNDING II, LLC, a Delaware limited liability company (the
"ISSUER"), CONSUMER PORTFOLIO SERVICES, INC., a California corporation ("CPS" or
the "SELLER"), and CITIGROUP FINANCIAL PRODUCTS INC., a Delaware corporation, as
Note Purchaser (in such capacity, together with any successors in such capacity,
the "NOTE PURCHASER") and Administrative Agent (in such capacity, together with
any successors in such capacity, the "ADMINISTRATIVE AGENT").

                                                 BACKGROUND

                  1. In connection with a securitization transaction, the
Issuer, the Seller, the Note Purchaser and the Administrative Agent have
previously entered into that certain Note Purchase Agreement, dated as of July
11, 2007 (the "ORIGINAL NOTE PURCHASE AGREEMENT").

                  2. Section 9.01 of the Original Note Purchase Agreement
permits the Issuer, the Seller, the Administrative Agent and the Note Purchaser
to amend the Original Note Purchase Agreement.

                  3. The Issuer, the Seller, the Note Purchaser and the
Administrative Agent intend to change certain terms of the securitization
transaction and to amend and restate the Original Note Purchase Agreement in its
entirety to, among other things, reflect a prepayment of the Initial Class A-1
Notes (as defined below) in order to reduce the outstanding principal amount of
the Initial Class A-1 Notes to $10,000,000, such prepayment to be comprised of
one or more cash payments and Warrants. For purposes of determining the value of
the Warrants with respect to such prepayment, the value of such shares will be
calculated using the average closing price of CPS common stock for the seven
days prior to the Effective Date.

                  4. On the Initial Closing Date, the Issuer and Wells Fargo
Bank, National Association, a national banking association, as trustee (together
with its successors in trust thereunder as provided in the Indenture referred to
below, the "TRUSTEE"), entered into the Indenture, dated as of July 11, 2007
(the "ORIGINAL INDENTURE"), pursuant to which the Issuer issued two classes of
notes designated as Class A-1 Variable Funding Notes (the "INITIAL CLASS A-1
NOTES") and Class A-2 Term Notes (the "INITIAL CLASS A-2 NOTES").

                  5. Contemporaneously with the execution and delivery of this
Agreement, the Original Indenture shall be amended and restated by the parties
thereto (as the same may be further amended, supplemented, restated or otherwise
modified from time to time in accordance with the terms thereof, the
"INDENTURE") in order to provide for, among other things, the amendment and
restatement of the Initial Class A-1 Notes in order to redesignate them as Class
A-1 Term Notes (the "CLASS A-1 NOTES") and the amendment and restatement of the
Initial Class A-2 Term Notes (the "CLASS A-2 NOTES" and, together with the Class
A-1 Notes, the "NOTES").

                  6. The security for the Notes includes Residual Interest
Assets representing residual interests in securitizations of motor vehicle
retail installment contracts and installment promissory notes. The Notes are
secured by the Residual Interest Assets together with the other Collateral,
which have been pledged by the Issuer to the Trustee pursuant to the Indenture.

                  7. The Issuer acquired the Residual Interest Assets together
with the other Conveyed Property from CPS pursuant to the Sale and Contribution
Agreement dated as of July 11, 2007 (the "ORIGINAL SALE AND CONTRIBUTION
AGREEMENT"), by and between the Issuer, as purchaser, CPS, as seller (in such
capacity, the "SELLER").

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                  8. Contemporaneously with the execution and delivery of this
Agreement, the Original Sale and Contribution Agreement shall also be amended
and restated by the parties thereto (as the same may be further amended,
supplemented, restated or otherwise modified from time to time in accordance
with the terms thereof, the "SALE AND CONTRIBUTION AGREEMENT").

                  9. CPS has joined in this Agreement to confirm certain
representations, warranties and covenants made by it as Seller for the benefit
of the Note Purchaser, the Noteholders and the Administrative Agent.

                  Now, therefore, in consideration of the foregoing, other good
and valuable consideration, and the mutual covenants and agreements contained
herein, the parties hereto desire to amend and restate the Original Note
Purchase Agreement and agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.01 DEFINITIONS. As used in this Agreement and unless the
context requires a different meaning, capitalized terms used but not defined
herein (including the preamble and the recitals hereto) shall have the meanings
assigned to such terms in Annex A hereto. The definitions of such terms are
applicable to the singular as well as the plural form of such terms and to the
masculine as well as the feminine and neuter genders of such terms:

                                   ARTICLE II
                         PURCHASE AND SALE OF THE NOTES

         SECTION 2.01 PURCHASE OF NOTES. On the terms and conditions set forth
in the Original Indenture, the Original Sale and Contribution Agreement and the
Original Note Purchase Agreement, and in reliance on the covenants,
representations and agreements set forth therein, the Issuer issued and caused
the Trustee to authenticate and deliver to the Note Purchaser the Initial Class
A-1 Notes and the Initial Class A-2 Notes on the Initial Funding Date. On the
terms and conditions set forth in the Indenture, the Sale and Contribution
Agreement and this Agreement, and in reliance on the covenants, representations
and agreements set forth herein and therein, the Initial Class A-1 Notes and the
Initial Class A-2 Notes shall be amended and restated as of the Effective Date
and the Issuer shall cause the Trustee to authenticate and deliver to the Note
Purchaser the Notes on the Effective Date. The Notes shall be dated the
Effective Date, registered in the name of the Note Purchaser, and duly
authenticated in accordance with the provisions of the Indenture.

         SECTION 2.02 TERM. The term of the Class A-1 Notes (the "CLASS A-1
TERM") shall be for a period commencing on the Initial Closing Date and ending
on the Class A-1 Scheduled Maturity Date. The term of the Class A-2 Notes (the
"CLASS A-2 TERM") shall be for a period commencing on the Initial Closing Date
and ending on the Class A-2 Scheduled Maturity Date. The Class A-1 Term (if the
Class A-1 Invested Amount has not previously been reduced to zero) and the Class
A-2 Term may be extended one time by the Issuer for only an additional twelve
months (a) upon written notice to the Administrative Agent, the Note Purchaser
and the Trustee given not (i) more than 45 days' prior to the Originally
Scheduled Termination Date and (ii) less than 20 days' prior to the Originally
Scheduled Termination Date (such written notice to include an Officer's
Certificate of each of the Issuer and CPS certifying that an Extension Breach
shall not have occurred as of the date of such notice) ("EXTENSION NOTICE"), (b)
upon the payment of a renewal fee in the amount equal to 1.00% of the Aggregate
Invested Amount as of the Originally Scheduled Facility Termination Date, (c) so
long as the following conditions precedent are satisfied on and as of the
Originally Scheduled Facility Termination Date: (i) there shall not have
occurred as of the Originally Scheduled Facility Termination Date any Extension
Breach; (ii) there shall not have occurred since the date of this Agreement a
Material Adverse Change; and (iii) there shall not have occurred since the date
of this Agreement a Material Adverse Effect and (d) if, as of the Originally

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Scheduled Facility Termination Date, neither the Issuer nor CPS has received
notice from the Administrative Agent to the effect that all conditions precedent
set forth in this Section 2.02 have not been satisfied. In addition, if within 5
Business Days after the delivery of the Extension Notice to the Administrative
Agent, the Note Purchaser and the Trustee, the Issuer does not receive a
confirmation from the Administrative Agent that it agrees that no Extension
Breach has occurred as of the date of such Extension Notice, an Extension Breach
shall be deemed to have occurred. Upon the extension of the Class A-1 Term and
the Class A-2 Term pursuant to this Section 2.02, each of the Issuer and CPS
shall be deemed to have made a representation and warranty to the effect that
all conditions precedent to such extension have been satisfied as of the
Originally Scheduled Termination Date.

                                   ARTICLE III
                                INTEREST AND FEES

         SECTION 3.01 INTEREST.

                  (a) The Class A-1 Notes shall bear interest during each
Interest Period at the Class A-1 Note Interest Rate.

                  (b) The Class A-2 Notes shall bear interest during each
Interest Period at the Class A-2 Note Interest Rate.

                  (c) Interest on the Notes with respect to each Interest Period
shall be due and payable on the Settlement Date occurring immediately subsequent
to such Interest Period in accordance with the provisions of the Indenture.

                  All computations of interest shall be made on the basis of a
year of 360 days and the actual number of days elapsed. Whenever any payment of
interest on or principal of any Note shall be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of the amount of interest
owed.

         SECTION 3.02 FEES.

                  (a) The Issuer and the Seller shall jointly and severally pay
or cause to be paid to the reasonable out-of-pocket expenses of the Note
Purchaser and the Administrative Agent, including legal fees and disbursements,
in accordance with and subject to SECTION 9.05. In addition, the Issuer shall
pay or cause to be paid to the Administrative Agent a monthly fee equal to
$2,083 (the "ADMINISTRATIVE AGENT FEE") pursuant to SECTION 8.5 of the
Indenture, and when applicable, pursuant to Section 5.7 of the Indenture.

                  (b) If the Issuer prepays the Notes in whole or in part on or
prior to the date which is 45 days prior to the Class A-2 Facility Termination
Date, the Issuer shall pay or cause to be paid to the Noteholders a prepayment
fee equal to 2.00% of the Invested Amount so prepaid (any such prepayment fee,
an "PREPAYMENT Fee"). For the avoidance of doubt, the payment of the Required
Noteholders' Principal Distributable Amount on any Settlement Date shall not
constitute a prepayment for purposes of this Section.

         SECTION 3.03 INCREASED COSTS, ETC. The Issuer agrees to reimburse the
Note Purchaser for an increase in the cost of, or any reduction in the amount of
any sum receivable by the Note Purchaser, including reductions in the rate of
return on the Note Purchaser's capital, in respect of the Notes that arise in
connection with any change in, or the introduction, adoption, effectiveness,
interpretation reinterpretation or phase-in, in each case, after the Initial
Funding Date, of any law or regulation, directive, guideline, decision or
request (whether or not having the force of law) of any court, central bank,
regulator or other Governmental Authority, except for such changes with respect
to increased capital costs and taxes which are governed by SECTIONS 3.05 and
3.06, respectively. Each such demand shall be provided to the Issuer in writing

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and shall state, in reasonable detail, the reasons therefor and the additional
amount required fully to compensate the Note Purchaser for such increased cost
or reduced amount or return.

         SECTION 3.04 FUNDING LOSSES. The Issuer agrees to indemnify each Party
and to hold each Party harmless from any loss or reasonable expense (to the
extent not otherwise paid as interest on the Notes) which such Party may sustain
or incur as a consequence of the making of a principal payment with respect to a
Note on a day that is not a Settlement Date or the making of any prepayment with
respect to a Note with less than five (5) days prior written notice. This
covenant shall survive the termination of this Note Purchase Agreement and the
payment of all other amounts payable hereunder.

         SECTION 3.05 INCREASED CAPITAL COSTS. If any change in, or the
introduction, adoption, effectiveness, interpretation or reinterpretation or
phase-in, in each case after the date hereof, of any law or regulation,
directive, guideline, decision or request (whether or not having the force of
law) of any court, central bank, regulator or other Governmental Authority
affects or would affect the amount of capital required or reasonably expected to
be maintained by the Note Purchaser or any Person controlling the Note Purchaser
and the Note Purchaser reasonably determines that the rate of return on its or
such controlling Person's capital as a consequence of its commitment is reduced
to a level below that which the Note Purchaser or such controlling Person would
have achieved but for the occurrence of any such circumstance, then, in any such
case after notice from time to time by the Note Purchaser to the Issuer, the
Issuer shall pay to the Note Purchaser an incremental commitment fee sufficient
to compensate the Note Purchaser or such controlling Person for such reduction
in rate of return.

         SECTION 3.06 TAXES. All payments by the Issuer of principal of, and
interest on, the Notes and all other amounts payable hereunder (including fees)
shall be made free and clear of and without deduction for any present or future
income, excise, stamp or franchise taxes and other taxes, fees, duties,
withholdings or other charges of any nature whatsoever imposed by any taxing
authority, but excluding in the case of the Note Purchaser, taxes imposed on or
measured by its overall net income, overall receipts or overall assets and
franchise taxes imposed on it by the jurisdiction in which the Note Purchaser is
organized or is operating or any political subdivision thereof, in each case
other than as a result of its entering into the Basic Documents (such
non-excluded items being called "TAXES"). In the event that any withholding or
deduction from any payment to be made by the Issuer hereunder is required in
respect of any Taxes pursuant to any applicable law, rule or regulation, then
the Issuer will:

                  (a) pay directly to the relevant authority the full amount
required to be so withheld or deducted;

                  (b) promptly forward to the Note Purchaser or its agent an
official receipt or other documentation evidencing such payment to such
authority; and

                  (c) pay to the Note Purchaser or its agent such additional
amount or amounts as is necessary to ensure that the net amount actually
received by the Note Purchaser will equal the full amount the Note Purchaser
would have received had no such withholding or deduction been required.

                  Moreover, if any Taxes are directly asserted against the Note
Purchaser with respect to any payment received by the Note Purchaser or its
agent, the Note Purchaser or such agent may pay such Taxes and the Issuer will
promptly upon receipt of prior written notice stating the amount of such Taxes
pay such additional amounts (including any penalties, interest or expenses) as
is necessary in order that the net amount received by such person after the
payment of such Taxes (including any Taxes on such additional amount) shall
equal the amount the Note Purchaser would have received had not such Taxes been
asserted. The Note Purchaser shall make all reasonable efforts to avoid the
imposition of any Taxes that would give rise to an additional payment under this
SECTION 3.06.

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                  In addition, the Issuer, agrees to pay, and authorizes the
Administrative Agent to pay in its name, any stamp, documentary, excise or
property tax, charges or similar levies imposed by any applicable Requirement of
Law or Governmental Authority and all Liabilities with respect thereto
(including by reason of any delay in payment thereof), in each case arising from
the execution, delivery or registration of, or otherwise with respect to, any
Basic Document or any transaction contemplated therein, but excluding in the
case of the Note Purchaser, taxes imposed on or measured by its overall net
income, overall receipts or overall assets and franchise taxes imposed on it by
the jurisdiction in which the Note Purchaser is organized or is operating or any
political subdivision thereof (such non-excluded items being called,
collectively, "OTHER TAXES").

                  The Issuer shall reimburse and indemnify, within 30 days after
receipt of demand therefor (with copy to the Administrative Agent), each Note
Purchaser for all Taxes and Other Taxes (including any Taxes and Other Taxes
imposed by any jurisdiction on amounts payable under this Section) paid by such
Note Purchaser and any Liabilities arising therefrom or with respect thereto,
whether or not such Taxes or Other Taxes were correctly or legally asserted. A
certificate of the Note Purchaser (or of the Administrative Agent on behalf of
such Note Purchaser) claiming any compensation under this clause, setting forth
the amounts to be paid thereunder and delivered to the Issuer with copy to the
Administrative Agent, shall be conclusive, binding and final for all purposes,
absent manifest error. In determining such amount, the Administrative Agent and
such Note Purchaser may use any reasonable averaging and attribution methods.

                  If the Issuer fails to pay any Taxes when due to the
appropriate taxing authority or fails to remit to the Note Purchaser or its
agent the required receipts or other required documentary evidence, the Issuer
shall indemnify the Note Purchaser and its agent, if any, for any incremental
Taxes, interest or penalties that may become payable by the Note Purchaser or
its agent as a result of any such failure. For purposes of this SECTION 3.06, a
distribution hereunder by the agent for the Note Purchaser shall be deemed a
payment by the Issuer.

                  Upon the request of the Issuer, the Note Purchaser, if it is
organized under the laws of a jurisdiction other than the United States, shall,
prior to the initial due date of any payments hereunder and to the extent
permissible under then current law, execute and deliver to the Issuer on or
about the first scheduled payment date in each calendar year thereafter, one or
more (as the Issuer may reasonably request) United States Internal Revenue
Service Forms W-8ECI or Forms W-8BEN or such other forms or documents (or
successor forms or documents), appropriately completed, as may be applicable to
establish the extent, if any, to which a payment to the Note Purchaser is exempt
from withholding or deduction of Taxes. The Issuer shall not, however, be
required to pay any increased amount under this SECTION 3.06 to the Note
Purchaser if the Note Purchaser fails to comply with the requirements set forth
in this paragraph.

         SECTION 3.07 DETERMINATION OF MARKET VALUE; MANDATORY PREPAYMENT. On
any Business Day, (i) if the Aggregate Invested Amount of the Notes is equal to
or greater than $65 million, (ii) upon and subsequent to the occurrence of any
Event of Default or Principal Coverage Ratio Violation, (iii) upon and
subsequent to a Shadow Rating Failure or (iv) upon the occurrence of any of the
events set forth in Section 10(b) of the Warrant (each such Business Day, a
"VALUATION DATE"), the Administrative Agent will have the right to value the
Pledged Residual Interest Certificates on a mark-to-market basis. On any
Valuation Date, on which (i) a Collateral Deficiency exists, (ii) the Aggregate
Invested Amount of the Notes is equal to or greater than $65 million and (iii)
there shall not have occurred on or prior to such date an Event of Default, a
Principal Coverage Ratio Violation, a Shadow Rating Failure or any of the events
set forth in Section 10(b) of the Warrant, the Issuer shall, not later than ten
Business Days after its receipt of notice from the Administrative Agent of such
Collateral Deficiency, prepay the Aggregate Invested Amount of the Notes
sequentially by an amount equal to such Collateral Deficiency. On any other
Valuation Date, in the event a Collateral Deficiency exists on such Valuation
Date, the Issuer shall, not later than one Business Day after its receipt of
notice from the Administrative Agent of such Collateral Deficiency, prepay the
Aggregate Invested Amount of the Notes by an amount equal to such Collateral
Deficiency. For the avoidance of doubt, the Administrative Agent shall have the
right in its sole discretion, absent manifest error, to determine whether a
Principal Coverage Ratio Violation has occurred and to calculate the Class A
Principal Coverage Ratio and the Collateral Deficiency.

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         SECTION 3.08 ILLEGALITY; SUBSTITUTED INTEREST RATES. Notwithstanding
any other provisions herein, (a) if any Requirement of Law or any change therein
or in the interpretation or application thereof shall make it unlawful for the
Note Purchaser to make or maintain any Notes at the LIBOR rate as contemplated
by this Agreement, or (b) in the event that the Note Purchaser shall have
determined (which determination shall be conclusive and binding upon the Issuer)
that by reason of circumstances affecting the LIBOR interbank market neither
adequate nor reasonable means exist for ascertaining the LIBOR rate, or (c) the
Note Purchaser shall have determined (which determination shall be conclusive
and binding on the Issuer) that the applicable LIBOR rate will not adequately
and fairly reflect the cost to the Note Purchaser of maintaining or funding the
Notes based on such applicable LIBOR rate (provided that the parties hereto
acknowledge and agree that the Note Purchaser shall only make such determination
if the published LIBOR rate used by the Note Purchaser does not accurately
reflect the actual LIBOR rate), (x) the obligation of the Note Purchaser to make
or maintain the Notes at the LIBOR rate shall forthwith be suspended and the
Note Purchaser shall promptly notify the Issuer thereof (by telephone confirmed
in writing) and (y) each Note then outstanding, if any, shall, from and
including the date that is forty-five (45) days after the Issuer's receipt of
notice from the Note Purchaser of the occurrence of any condition set forth in
clauses (a), (b) or (c), or at such earlier date as may be required by law,
until payment in full thereof, bear interest at the rate per annum equal to the
greater of (i) the Prime Rate and (ii) the rate of interest (including the
Applicable Margin) in effect on the date immediately preceding the date any
event described in clause (a), (b) or (c) occurred (calculated on the basis of
the actual number of days elapsed in a year of 360 days). If subsequent to such
suspension of the obligation of the Note Purchaser to make or maintain the Notes
at the LIBOR rate it becomes lawful for the Note Purchaser to make or maintain
the Notes at the LIBOR rate, or the circumstances described in clause (b) or (c)
above no longer exist, the Note Purchaser shall so notify the Issuer and its
obligation to do so shall be reinstated effective as of the date it becomes
lawful for the Note Purchaser to make or maintain the Notes at the LIBOR rate or
the circumstances described in clause (b) or (c) above no longer exist.

                                   ARTICLE IV
                               OTHER PAYMENT TERMS

         SECTION 4.01 TIME AND METHOD OF PAYMENT. All amounts payable to the
Note Purchaser hereunder or with respect to the Notes shall be made by wire
transfer of immediately available funds in Dollars not later than 4:00 p.m., New
York City time, on the date due. Any funds received after that time will be
deemed to have been received on the next Business Day.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

         SECTION 5.01 REPRESENTATIONS AND WARRANTIES OF THE ISSUER. (I) The
Issuer made certain representations and warranties, on which (i) the Note
Purchaser relied in purchasing the Notes, (ii) the Trustee relied in receiving a
security interest in the Residual Interest Assets and the other Collateral
related thereto under the Indenture and (iii) the Administrative Agent and the
Note Purchaser relied in executing the Original Note Purchase Agreement on the
Initial Closing Date. Such representations and warranties were made as of the
Initial Closing Date, as of the Initial Funding Date and as of each Funding Date
after the Initial Funding Date. In addition, the Issuer will make the following
representations and warranties as of the Effective Date and as of each
Settlement Date (other than Section 5.01(I)(l)), on which (i) the Administrative
Agent and the Note Purchaser relied in executing this Agreement on the Effective
Date and (ii) the Trustee relied in executing the Indenture on the Effective
Date.

                  (a) SALE AND CONTRIBUTION AGREEMENT. Each of the
representations and warranties of the Purchaser set forth in the Sale and
Contribution Agreement is true and correct.

                  (b) OTHER OBLIGATIONS. The Issuer is not in default in the
performance, observance or fulfillment of any obligation, covenant or condition
in any of the Basic Documents to which it is a party or in any other agreement
or instrument to which it is a party or by which it is bound.

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                  (c) NO PUBLIC OFFERING OF THE NOTES. Neither the Issuer nor,
to the best of the Issuer's knowledge after due inquiry, anyone acting on the
Issuer's behalf, has offered, pledged, sold or otherwise disposed of any Note or
any interest therein or solicited any offer to buy or accept a transfer, pledge
or other disposition of any Note or any interest therein or otherwise approached
or negotiated with respect to any Note or any interest therein, with any person
in any manner, or made any general solicitation by means of general advertising
or in any other manner, or taken any other action, which would constitute a
public distribution of the Notes under the Securities Act, or which would render
the disposition of any Note a violation of Section 5 of the Securities Act or
any State securities laws, or require registration or qualification pursuant
thereto.

                  (d) NO REGISTRATION UNDER THE SECURITIES ACT. Assuming the
Note Purchaser is not purchasing the Notes with a view toward further
distribution and that the Note Purchaser has not engaged in any general
solicitation or general advertising within the meaning of the Securities Act,
the offer and sale of the Notes in the manner contemplated by this Agreement is
a transaction exempt from the registration requirements of the Securities Act,
and the Indenture is not required to be qualified under the Trust Indenture Act.

                  (e) REGULATIONS T, U AND X. No proceeds of any Note will be
used, directly or indirectly, by the Issuer for the purpose of purchasing or
carrying any Margin Stock (as defined in Regulation U of the Board of Governors
of the Federal Reserve System) or for the purpose of reducing or retiring any
indebtedness that was originally incurred to purchase or carry Margin Stock or
for any other purpose which might cause any Note to be a "purpose credit" within
the meaning of Regulation U. The use of the proceeds from any Note will not
violate or otherwise conflict with the provisions of Regulations T, U or X of
the Board of Governors of the Federal Reserve System.

                  (f) INVESTMENT COMPANY STATUS. The Issuer is not, nor will the
consummation of the transactions contemplated by the Basic Documents cause the
Issuer to be, an "investment company" or an "affiliated person" of, or
"promoter" or "principal underwriter" for, an "investment company," as such
terms are defined in the Investment Company Act of 1940, as amended (the
"INVESTMENT COMPANY ACT"), or a company "controlled" by an investment company
within the meaning of the Investment Company Act. The consummation of the
transactions contemplated by the Basic Documents will not violate any provision
of the Investment Company Act or any rule, regulation or order issued by the
Securities and Exchange Commission thereunder. The Issuer is not subject to
regulation under any applicable law (other than Regulation X of the Board of
Governors of the Federal Reserve System) that limits its ability to incur
Indebtedness.

                  (g) FULL DISCLOSURE. The information, reports, financial
statements, exhibits, schedules, officer's certificates and other documents
furnished by or on behalf of the Issuer to the Seller, the Note Purchaser, the
Administrative Agent or the Trustee in connection with the negotiation,
preparation, delivery or performance of this Agreement, the Notes, the
Indenture, the Sale and Contribution Agreement and the other Basic Documents or
included herein or therein or delivered pursuant hereto or thereto, taken as a
whole, are true and correct (or, in the case of projections, are based on good
faith reasonable estimates) on the date as of which such information is stated
or certified and do not and will not contain an untrue statement of a material
fact, or omit to state any material fact necessary to make the statements herein
or therein contained, in the light of the circumstances under which they were
made, not misleading. All such financial statements fairly present the financial
condition of the Issuer as of the date specified therein (subject to normal
year-end audit adjustments) all in accordance with GAAP.

                  (h) COLLATERAL SECURITY.

                           (i) The Issuer owns and will own, and has and will
         have good title to each item that it pledges as Collateral, free and
         clear of any and all Liens (including, without limitation, any tax
         liens), other than Liens created in favor of the Trustee pursuant to
         the Indenture or Liens that are released immediately prior to such
         pledge.

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                           (ii) The Indenture is effective to create, as
         collateral security for the Notes, a valid and enforceable Lien on the
         Collateral in favor of the Trustee. No security agreement, financing
         statement or other public notice similar in effect with respect to all
         or any part of the Collateral is or will be on file or of record in any
         public office, except such as have been or may hereinafter be filed
         pursuant to this Agreement evidencing the Issuer Secured Parties' first
         priority Lien therein, or except such as shall be terminated as to the
         Collateral no later than immediately prior to the pledge of such
         Collateral to the Trustee in favor of the Issuer Secured Parties under
         this Agreement.

                           (iii) Upon filing of the financing statement
         delivered to the Administrative Agent and the Trustee by the Issuer on
         or prior to the Initial Funding Date with the Secretary of State of the
         State of Delaware (which financing statement was in proper form for
         filing in such jurisdiction and accurately described the Collateral),
         the Lien created pursuant to the Indenture constituted, and such Lien
         currently constitutes a perfected security interest in the Collateral
         in favor of the Trustee for the benefit of the Issuer Secured Parties,
         which Lien is and will be prior to all other Liens of all other Persons
         that may be perfected by filing a financing statement under Article 9
         of the Uniform Commercial Code and which Lien is enforceable as such as
         against all other Persons.

                           (iv) Upon delivery of Residual Interest Certificates
         to the Trustee in accordance with Section 2.1(a) of the Sale and
         Contribution Agreement, the Lien created pursuant to the Indenture
         constituted, and such Lien currently constitutes, a perfected security
         interest in such Residual Interest Certificates in favor of the Trustee
         for the benefit of the Issuer Secured Parties, which Lien is and will
         be prior to all other Liens of all other Persons that may be perfected
         by possession of such Residual Interest Certificates under Article 9 of
         the Uniform Commercial Code and which Lien is enforceable as such as
         against all other Persons.

                  (i) NO DEFAULT OR EVENT OF DEFAULT. No Default or Event of
Default has occurred and is continuing.

                  (j) OWNERSHIP OF PROPERTIES. The Issuer has good and
marketable title to any and all of its properties and assets, subject only to a
Lien under the Indenture.

                  (k) LEGAL COUNSEL, ETC. The Issuer has consulted with its own
legal counsel and independent accountants to the extent it has deemed necessary
regarding the tax, accounting and regulatory consequences of the transactions
contemplated by this Agreement and the other Basic Documents, and the Issuer is
not participating in such transactions in reliance on any representations of the
Note Purchaser, the Administrative Agent or their respective Affiliates, or its
counsel, with respect to tax, accounting, regulatory or any other matters.

                  (l) BASIC DOCUMENTS. The Issuer has furnished to the Note
Purchaser true, accurate and complete copies of all other Basic Documents to
which it is a party as of the Closing Date, all of which Basic Documents are in
full force and effect as of the Closing Date and no terms of any such agreements
or documents have been amended, modified or otherwise waived as of such date. No
party to any Basic Document is in default under any of its obligations
thereunder.

                  (m) RESIDUAL INTEREST CERTIFICATES. Each Residual Interest
Certificate was issued pursuant to an Eligible Committed Securitization.

                  (n) NO FRAUDULENT CONVEYANCE. As of the Initial Funding Date
and as of each Funding Date, the fair value of the assets of the Issuer was
greater than the fair value of its liabilities (including, without limitation,
contingent liabilities of the Issuer), and the Issuer was, is and will be
solvent, does and will pay its debts as they mature and does not and will not
have an unreasonably small capital to engage in the business in which it is
engaged and proposes to engage. The Issuer does not intend to incur, or believe
that it has incurred, debts beyond its ability to pay such debts as they mature.

                                      -8-
<PAGE>

The Issuer is not in default under any material obligation to pay money to any
Person. The Issuer is not contemplating the commencement of insolvency,
bankruptcy, liquidation or consolidation proceedings or the appointment of a
receiver, liquidator, conservator, trustee or similar official in respect of the
Issuer or any of its assets. The Issuer has not transferred any Collateral with
any intent to hinder, delay or defraud any of its creditors. The Issuer has not
used, and will not use, the proceeds from the transactions contemplated by this
Agreement or any other Basic Document to give any preference to any creditor or
class of creditors. The Issuer has given fair consideration and reasonably
equivalent value in exchange for the sale of the Residual Interest Assets by CPS
under the Sale and Contribution Agreement.

                  (o) NO OTHER BUSINESS. The Issuer engages in no business
activities other than the purchase of the Residual Interest Assets, pledging the
Collateral to the Trustee under the Indenture, transferring Residual Interest
Assets in connection with securitizations or third-party sales, issuing the
Notes and other activities relating to the foregoing to the extent permitted by
the organizational documents of the Issuer as in effect on the date such
activity is engaged in, or as amended with the prior written consent of the
Administrative Agent. Without limitation of the foregoing, the Issuer is not an
issuer of securities other than the Notes or a borrower under any loan or
financing agreement, facility or other arrangement other than the facility
established pursuant to this Agreement and the other Basic Documents.

                  (p) NOTES ENTITLED TO BENEFIT OF THE INDENTURE. The Notes
purchased by the Note Purchaser hereunder will be entitled to the benefit of the
security provided in the Indenture.

                  (q) NO INDEBTEDNESS. The Issuer has no Indebtedness, other
than Indebtedness incurred under (or contemplated by) the terms of the Basic
Documents.

                  (r) ERISA. The Issuer does not maintain any Plans, and the
Issuer agrees to notify the Administrative Agent in advance of forming any
Plans. Neither the Issuer nor any Affiliate of the Issuer (other than MFN under
the MFN Financial Corporation Pension Plan and CPS under its defined
contribution (401(k)) plan) has any obligations or liabilities with respect to
any Plans or Multiemployer Plans, nor have any such Persons had any obligations
or liabilities with respect to any such Plans during the five year period prior
to the date this representation is made or deemed made. The Issuer will give
written notice to the Administrative Agent if at any time it or any Affiliate
has any obligations or liabilities with respect to any Plan or Multiemployer
Plan. All Plans maintained by the Issuer or any Affiliate are in substantial
compliance with all applicable laws (including ERISA). The Issuer is not an
employer under any Multiemployer Plan.

                  (s) OWNERSHIP OF ISSUER. CPS owns beneficially and of record
100% of membership interests in the Issuer free and clear of all Liens. The
Issuer is a disregarded entity for federal income tax purposes and no election
has been made or will be made to treat the Issuer as a corporation or an
association taxable as a corporation for federal income tax purposes. Each
Residual Interest Certificate represents an interest in a Trust with respect to
which an opinion of counsel was rendered that such Trust is not taxable as a
corporation for federal income tax purposes and to the Issuer's knowledge such
opinion is still correct.

                  (II) In addition to the representations and warranties set
forth in Section 5.01(I) above, the Issuer makes the following representations
and warranties on which each of the Note Purchaser, the Administrative Agent and
the Trustee are relying upon in entering in the Basic Documents as of the
Effective Date (other than Section 5.01(I)(l) and Section 5.01(II)(b)). In
addition, the Issuer will make the following representations and warranties as
of each Settlement Date.

                  (a) MAINTENANCE OF SECURITY INTEREST. All financing statements
and continuation statements and amendments thereto, if any, have been executed
and filed that are necessary to continue and maintain the perfection of the
first priority security interest of the Trustee for the benefit of the Issuer
Secured Parties in the Collateral and their proceeds.

                                      -9-
<PAGE>

                  (b) NO PRINCIPAL COVERAGE RATIO VIOLATION. Except as otherwise
disclosed to the Administrative Agent on the Settlement Date Statement relating
to any Settlement Date, no Principal Coverage Ratio Violation has occurred.

                  (c) BASIC DOCUMENTS. The Issuer has furnished to the Note
Purchaser true, accurate and complete copies of all other Basic Documents to
which it is a party as of the Effective Date, all of which Basic Documents are
in full force and effect as of the Effective Date and no terms of any such
agreements or documents have been amended, modified or otherwise waived as of
such date. No party to any Basic Document is in default under any of its
obligations thereunder.

         SECTION 5.02 REPRESENTATIONS AND WARRANTIES OF CPS. (I) CPS made
certain representations and warranties, on which the Issuer relied in purchasing
the Residual Interest Assets, on which the Note Purchaser relied in purchasing
the Notes, on which the Note Purchaser and the Administrative Agent relied in
executing the Original Note Purchase Agreement and on which the Trustee relied
in executing the Original Indenture. Such representations and warranties were
made as of the Initial Closing Date and as of each Funding Date after the
Initial Funding Date. In addition, CPS will make the following representations
and warranties as of the Effective Date and as of each Settlement Date, on which
(i) the Administrative Agent and the Note Purchaser relied in executing this
Agreement on the Effective Date and (ii) the Trustee relied in executing the
Indenture on the Effective Date.

                  (a) SALE AND CONTRIBUTION AGREEMENT. Each of the
representations and warranties of the Seller in the Sale and Contribution
Agreement is true and correct.

                  (b) INVESTMENT COMPANY STATUS. CPS is not, nor will the
consummation of the transactions contemplated by the Basic Documents cause CPS
to be, an "investment company" or an "affiliated person" of, or "promoter" or
"principal underwriter" for, an "investment company," as such terms are defined
in the Investment Company Act or a company "controlled by" an investment company
within the meaning of the Investment Company Act. The consummation of the
transactions contemplated by this Agreement and each other Basic Document to
which CPS is a party will not violate any provision of such Act or any rule,
regulation or order issued by the Securities and Exchange Commission thereunder.
CPS is not subject to regulation under any applicable law (other than Regulation
X of the Board of Governors of the Federal Reserve System) that limits its
ability to incur Indebtedness.

                  (c) NO MATERIAL ADVERSE EFFECT; NO DEFAULT. (i) Neither CPS
nor any of its Affiliates is a party to any indenture, loan or credit agreement
or any lease or other agreement or instrument or subject to any charter or
corporate restriction that could have, and no provision of applicable law or
governmental regulation has had or could reasonably be expected to have a
Material Adverse Effect and (ii) neither CPS nor any of its Affiliates is in
default under or with respect to any contract, agreement, lease or other
instrument to which CPS or any of its Affiliates is a party and which is
material to CPS's or such Affiliate's condition (financial or otherwise),
business, operations or properties, and neither CPS nor any of its Affiliates
has delivered or received any notice of default thereunder, other than such
defaults as have been waived.

                  (d) REPRESENTATIONS AND WARRANTIES OF CPS UNDER BASIC
DOCUMENTS. Each representation and warranty made by it in each Basic Document to
which it is a party (including any representation and warranties made by it as
Seller) is true and correct as of the date originally made, as of the Initial
Funding Date, as of each Funding Date, as of the Effective Date and as of each
Settlement Date.

                  (e) NO PUBLIC OFFERING OF NOTES. Neither CPS nor, to the best
of CPS's knowledge after due inquiry, anyone acting on CPS's behalf, has
offered, transferred, pledged, sold or otherwise disposed of any Note or any
interest therein, or solicited any offer to buy or accept a transfer, pledge or
other disposition of any Note or any interest therein or otherwise approached or
negotiated, with respect to any Note or any interest therein, with any person in
any manner, or made any general solicitation by means of general advertising or
in any other manner, or taken any other action, which would constitute a public
distribution of the Notes under the Securities Act, or which would render the
disposition of any Note a violation of Section 5 of the Securities Act or any
state securities laws, or require registration or qualification pursuant
thereto.

                                      -10-
<PAGE>

                  (f) REGULATIONS T, U AND X. No proceeds of any sale hereunder
will be used, directly or indirectly, by CPS for the purpose of purchasing or
carrying any Margin Stock (as defined in Regulation U of the Board of Governors
of the Federal Reserve System) or for the purpose of reducing or retiring any
indebtedness that was originally incurred to purchase or carry Margin Stock or
for any other purpose which might cause any sale hereunder to be a "purpose
credit" within the meaning of Regulation U. The use of the proceeds from the
issuance of the Notes will not violate or otherwise conflict with the provisions
of Regulations T, U or X of the Board of Governors of the Federal Reserve
System.

                  (g) SECURITY INTEREST. Notwithstanding the intent of the
parties set forth in Section 6.3 of the Sale and Contribution Agreement, the
Sale and Contribution Agreement is effective to create valid and enforceable
Liens on the Conveyed Property in favor of the Issuer. Upon filing of the
financing statement delivered to the Administrative Agent and the Trustee by CPS
on or prior to the Initial Funding Date in each jurisdiction (including, without
limitation, the State of California) in which required by applicable law (which
financing statement was in proper form for filing in each such jurisdiction and
accurately describes the Collateral), the Lien created pursuant to the Sale and
Contribution Agreement constituted, and such Lien currently constitutes a first
priority perfected security interest in the Conveyed Property in favor of the
Issuer, which Lien is and will be prior to all other Liens and which Lien is
enforceable as such as against all Persons.

                  (h) FULL DISCLOSURE. The information, reports, financial
statements, exhibits, schedules, officer's certificates and other documents
furnished by or on behalf of CPS, the Seller or any of their respective
Affiliates to the Issuer, the Purchaser, the Note Purchaser, the Administrative
Agent or the Trustee in connection with the negotiation, preparation, delivery
or performance of the Original Note Purchase Agreement, the Initial Class A-1
Notes, the Initial Class A-2 Notes, the Original Sale and Contribution
Agreement, the Original Indenture and the other Basic Documents or included
herein or therein or delivered pursuant hereto or thereto, taken as a whole, are
true and correct in every material respect (or, in the case of projections, are
based on good faith reasonable estimates) on the date as of which such
information is stated or certified and do not and will not contain an untrue
statement of a material fact, or omit to state any material fact necessary to
make the statements herein or therein contained, in the light of the
circumstances under which they were made, not misleading. All such financial
statements fairly present the financial condition of CPS or such Affiliates as
of the date specified therein (subject to normal year-end audit adjustments) all
in accordance with GAAP. On such date, neither CPS nor any of its Affiliates had
any material contingent liabilities, liabilities for taxes, or unusual or
anticipated losses from any unfavorable commitments, except as referred to or
reflected in such financial statements as of such date. There is no fact known
to CPS or any of its Affiliates, after due inquiry, that could reasonably be
expected to have a Material Adverse Effect and that has not been disclosed
herein, in the other Basic Documents or in a report, financial statement,
exhibit, schedule, disclosure letter or other writing furnished to the Note
Purchaser or the Administrative Agent for use in connection with the
transactions contemplated hereby or thereby.

                  (i) ERISA. Neither CPS nor any of its Affiliates maintain any
Plans (other than CPS's defined contribution (401(k)) plan and the MFN Financial
Corporation Pension Plan), and CPS agrees to notify the Administrative Agent in
writing in advance of forming any Plans. Neither CPS nor any of its Affiliates
has any obligations or liabilities with respect to any Plans or Multiemployer
Plans (other than CPS's defined contribution (401(k)) plan and the MFN Financial
Corporation Pension Plan), nor have any such Persons had any obligations or
liabilities with respect to any such Plans during the five year period prior to
the date this representation is made or deemed made. CPS will give prior written
notice to the Administrative Agent if at any time it or any Affiliate has any
obligations or liabilities with respect to any Plan or Multiemployer Plan. All
Plans maintained by CPS or any of its Affiliates are in substantial compliance
with all applicable laws (including ERISA). CPS is not an employer under any
Multiemployer Plan.

                                      -11-
<PAGE>

                  (j) [RESERVED].

                  (k) [RESERVED].

                  (l) Each of CPS and its Affiliates is in compliance in all
material respects with all agreements to which it is bound under all applicable
ABS Issuance Agreements. The Issuer has made available to the Administrative
Agent true and complete copies of all ABS Issuance Agreements and related
transaction and other closing documents. Each party to the applicable ABS
Issuance Agreements has performed in all material respects all of its respective
obligations thereunder, and there is no pending or threatened cancellation of
any ABS Issuance Agreement, and neither CPS nor any of its Affiliates has
received any notice to the effect that any party to any ABS Issuance Agreement
intends to cease doing business with CPS or any of its Affiliates.

                  (m) Neither CPS nor any of its Affiliates, including any
issuer or depositor in any Securitization (a "SECURITIZATION ISSUER"), and no
servicer with respect to a Securitization, has taken any action which would
cause any trust, corporation, partnership or other entity ("SECURITIZATION
ENTITY") to be registered as an investment company pursuant to the Investment
Company Act, or which would cause any Securitization Entity to be "controlled
by" an investment company within the meaning of the Investment Company Act.

                  (n) Each Securitization Issuer and each servicer with respect
to a Securitization has made all filings required to be made by or under the
Securities Exchange Act of 1934, as amended. There is no pending or threatened
claim that any private placement memorandum or other offering document, or any
amendments or supplements thereto contained, as of the date on which it was
issued by a Securitization Entity in any Securitization, any untrue statement of
a material fact or omitted to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. No securities were
issued or sold by CPS or any of its Affiliates in violation of Section 5 of the
Securities Act of 1933, as amended, in any Securitization.

                  (o) No Securitization Issuer, no depositor or servicer with
respect to a Securitization and no entity serving as trustee for any
Securitization has taken any action which would adversely affect the
characterization or tax treatment for federal, state or local income or
franchise tax purposes of any Securitization Entity or any securities issued in
a Securitization, and all required federal, state and local tax and information
returns relating to any Securitization have been properly filed.

                  (p) Since June 30, 2007, no rating agency has downgraded, or
given the CPS any indication that it is considering a downgrading of any
securities issued in any Securitization Transaction that has not been disclosed
in writing to the Administrative Agent, other than a downgrade resulting solely
from a downgrade in the rating of the related monoline insurer.

                  (q) Except as would not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect, neither CPS nor
any of its Affiliates has done or failed to do, or has caused to be done or
omitted to be done, any act, the effect of which would operate to invalidate or
materially impair (x) any approvals of any rating agency, insurer, investor or
other party to any ABS Issuance Agreement, or (y) any fidelity bond, direct
surety bond, or errors and omissions insurance policy required by any agency,
insurer or investor, or other party to any ABS Issuance Agreement.

                  (r) Each Transferred Residual Interest Certificate and each
Pledged Residual Interest Certificate are substantially the form of the Residual
Interest Certificates transferred by CPS to the Issuer and pledged by the Issuer
to the Trustee, for the benefit of the Issuer Secured Parties, on the Initial
Funding Date and on each Funding Date.

                                      -12-
<PAGE>

                  (II) In addition to the representations and warranties set
forth in Section 5.02(I) above, CPS makes the following representations and
warranties on which each of the Note Purchaser, the Administrative Agent and the
Trustee are relying upon in entering in the Basic Documents as of the Effective
Date. In addition, CPS will make the following representations and warranties as
of each Settlement Date.

                  (a) MAINTENANCE OF SECURITY INTEREST. As of the Effective Date
and as of each Settlement Date, all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary to continue and maintain the perfection of the first priority security
interest of the Issuer in the Conveyed Property.

                  (b) FULL DISCLOSURE. The information, reports, financial
statements, exhibits, schedules, officer's certificates and other documents
furnished by or on behalf of CPS, the Seller or any of their respective
Affiliates to the Issuer, the Purchaser, the Note Purchaser, the Administrative
Agent or the Trustee in connection with the negotiation, preparation, delivery
or performance of this Agreement, the Class A-1 Notes, the Class A-2 Notes, the
Sale and Contribution Agreement, the Indenture and the other Basic Documents or
included herein or therein or delivered pursuant hereto or thereto, taken as a
whole, are true and correct in every material respect (or, in the case of
projections, are based on good faith reasonable estimates) on the date as of
which such information is stated or certified and do not and will not contain an
untrue statement of a material fact, or omit to state any material fact
necessary to make the statements herein or therein contained, in the light of
the circumstances under which they were made, not misleading. All such financial
statements fairly present the financial condition of CPS or such Affiliates as
of the date specified therein (subject to normal year-end audit adjustments) all
in accordance with GAAP. On such date, neither CPS nor any of its Affiliates had
any material contingent liabilities, liabilities for taxes, or unusual or
anticipated losses from any unfavorable commitments, except as referred to or
reflected in such financial statements as of such date. There is no fact known
to CPS or any of its Affiliates, after due inquiry, that could reasonably be
expected to have a Material Adverse Effect and that has not been disclosed
herein, in the other Basic Documents or in a report, financial statement,
exhibit, schedule, disclosure letter or other writing furnished to the Note
Purchaser or the Administrative Agent for use in connection with the
transactions contemplated hereby or thereby.

         SECTION 5.03 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE NOTE
PURCHASER. The Note Purchaser hereby covenants to the Issuer and the Seller that
it will perform the obligations required of it under the Basic Documents in
accordance with the terms of the Basic Documents. In addition, the Note
Purchaser represents and warrants to the Issuer and the Seller, (i) with respect
to clauses (a) through (e) below, as of the Initial Funding Date and (ii) with
respect to clauses (f) and (g) below, as of the Effective Date (or, with respect
to (i) and (ii), as of a subsequent date on which a successor or assignee of the
Note Purchaser shall become a party hereto, in which case such successor or
assignee hereby represents and warrants to the Issuer and the Seller), that:

                  (a) it has had an opportunity to discuss the Issuer's and the
Seller's business, management and financial affairs, and the terms and
conditions of the transactions contemplated by the Basic Documents, with the
Issuer and the Seller and their respective representatives;

                  (b) it is either (i) a "qualified institutional buyer" within
the meaning of Rule 144A under the Securities Act or (ii) an "accredited
investor" within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D
under the Securities Act, and has sufficient knowledge and experience in
financial and business matters to be capable of evaluating the merits and risks
of investing in, and is able and prepared to bear the economic risk of investing
in, the Notes;

                  (c) it is purchasing the Notes for its own account, or for the
account of one or more (i) "qualified institutional buyers" within the meaning
of Rule 144A under the Securities Act or (ii) "accredited investors" within the
meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities
Act that meet the criteria described in SUBSECTION (b) and for which it is

                                      -13-
<PAGE>

acting with complete investment discretion, for investment purposes only and not
with a view to distribution, subject, nevertheless, to the understanding that
the disposition of its property shall at all times be and remain within its
control;

                  (d) it understands that the Notes have not been and will not
be registered or qualified under the Securities Act or any applicable state
securities laws or the securities laws of any other jurisdiction and are being
offered only in a transaction not involving any public offering within the
meaning of the Securities Act and may not be resold or otherwise transferred
unless so registered or qualified or unless an exemption from registration or
qualification is available, that the Issuer is not required to register the
Notes, and that any transfer must comply with provisions of Section 2.5 of the
Indenture and SECTION 9.17 hereof;

                  (e) it understands that the Notes will bear the legend set out
in the forms of Notes attached as EXHIBITS A-1 AND A-2 to the Indenture and be
subject to the restrictions on transfer described in such legend;

                  (f) it will comply with all applicable federal and state
securities laws in connection with any subsequent resale of the Notes; and

                  (g) this Agreement has been duly and validly authorized,
executed and delivered by the Note Purchaser and constitutes a legal, valid,
binding obligation of the Note Purchaser, enforceable against the Note Purchaser
in accordance with its terms except as enforceability may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors' rights generally and by equitable limitations on the
availability of specific remedies, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

                                   ARTICLE VI
                                   CONDITIONS

         SECTION 6.01 CONDITIONS PRECEDENT TO THE EFFECTIVENESS. This Agreement
shall be effective as of the Effective Date upon the satisfaction of the
following conditions precedent:

                  (a) the issuance of the duly executed and authorized Warrants
pursuant to this Agreement, substantially in the form attached as EXHIBIT A
hereto, registered in the name of Citigroup Global Markets Inc.;

                  (b) receipt by the Administrative Agent of (i) one or more
cash prepayments in respect of principal of the Initial Class A-1 Note in the
aggregate amount of $12,765,243.93 and (ii) one or more cash prepayments in
respect of interest on the Initial Class A-1 Note in the aggregate amount of
$145,376.77;

                  (c) all consents, waivers and approvals necessary for the
consummation of the transactions contemplated by the Basic Documents shall have
been obtained and shall be in full force and effect;

                  (d) confirmation satisfactory to the Administrative Agent that
all conditions to the amendment and restatement of the Initial Class A-1 Notes
and the Initial Class A-2 Notes under the Indenture and the other Basic
Documents have been satisfied;

                  (e) the Note Purchaser shall have received (i) a duly
executed, authorized and authenticated Class A-1 Note registered in its name and
stating that the principal amount thereof is equal to the Class A-1 Facility
Amount, and (ii) a duly executed, authorized and authenticated Class A-2 Note
registered in its name and stating that the principal amount thereof is equal to
the Class A-2 Facility Amount;

                                      -14-
<PAGE>

                  (f) CPS shall have paid all fees and expenses required to be
paid by CPS and the Issuer on or prior to the Effective Date, including all fees
and expenses required under SECTION 9.05(a) hereof;

                  (g) confirmation satisfactory to the Administrative Agent that
the Notes purchased by the Note Purchaser hereunder shall be entitled to the
benefit of the security provided in the Indenture and shall constitute the
legal, valid and binding agreement of the Issuer, enforceable against the Issuer
in accordance with its terms except as enforceability may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors' rights generally and by equitable limitations on the
availability of specific remedies, regardless of whether such enforceability is
considered in a proceeding in equity or at law;

                  (h) no Material Adverse Change shall have occurred since June
15, 2008;

                  (i) the Administrative Agent shall have received:

                           (i) a duly executed and delivered original
         counterpart of each Basic Document, including the Guaranty, in the form
         of which is attached as EXHIBIT B hereto, each such document being in
         full force and effect;

                           (ii) certified copies of charter documents and each
         amendment thereto, and resolutions of the Board of Directors or other
         governing authority of each of the Issuer and the Seller authorizing or
         ratifying the execution, delivery and performance of all Basic
         Documents to which it is a party, certified by the Secretary or an
         Assistant Secretary of each of the Issuer and the Seller as of the
         Effective Date, which certificate shall state that the resolutions
         thereby certified have not been amended, modified, revoked or rescinded
         as of the date of such certificate;

                           (iii) a certificate of the Secretary or an Assistant
         Secretary of the Issuer and the Seller, as applicable, certifying the
         names and the signatures of its officer or officers authorized to sign
         all transaction documents to which it is a party;

                           (iv) a certificate of a senior officer of CPS to the
         effect that the representations and warranties of CPS and the Seller in
         this Agreement and the other Basic Documents to which either of them is
         a party are true and correct as of the Effective Date, and that each of
         CPS and the Seller has complied in all material respects with all
         agreements and satisfied all conditions on its part to be performed or
         satisfied at or prior to the Effective Date;

                           (v) a certificate of a senior officer of the Issuer
         to the effect that the representations and warranties of the Issuer and
         the Purchaser in this Agreement and the other Basic Documents to which
         either of them is a party are true and correct as of the Effective Date
         and that each of the Issuer and the Purchaser have complied in all
         material respects with all agreements and satisfied all conditions on
         their part to be performed or satisfied at or prior to the Effective
         Date;

                                      -15-
<PAGE>

                           (vi) legal opinions (including opinions relating to
         true sale, non-consolidation and other bankruptcy matters, tax, UCC
         with respect to perfection and priority of the Trustee's security
         interest in the Collateral, securities law relating to the Class A-1
         Notes, the Class A-2 Notes and the Warrants, Investment Company Act
         relating to Investment Company Act matters, enforceability, corporate
         matters, an opinion pursuant to Section 9.2 of the Original Indenture
         and an opinion from the Trustee with respect to general matters) in
         form and substance satisfactory to the Note Purchaser and its counsel;

                           (vii) confirmation satisfactory to the Administrative
         Agent that all necessary UCC filings have been made and delivery to the
         Administrative Agent and its legal counsel of applicable UCC search
         reports dated as of July 3, 2008;

                           (viii) payment of reasonable out-of-pocket fees and
         expenses of the Note Purchaser and the Administrative Agent in
         accordance with SECTION 3.02(a) hereof;

                           (ix) copies of certificates or other evidence from
         the Secretary of State or other appropriate authority of the States of
         Delaware and California, evidencing the good standing of the Issuer and
         the Seller in the States of Delaware and California, in each case,
         dated no earlier than 5 days prior to the Effective Date;

                           (x) confirmation satisfactory to the Administrative
         Agent that a Trust Receipt was issued by the Trustee pursuant to
         SECTION 2.12 of the Indenture with respect to the Pledged Residual
         Interest Certificates funded on each Funding Date;

                           (xi) such other documents, opinions and information
         as the Note Purchaser may reasonably request;

                  (j) confirmation satisfactory to the Administrative Agent that
the Issuer has irrevocably instructed the trustee and/or paying agent under the
ABS Issuance Agreements related to any Pledged Residual Interest Assets funded
on each Funding Date, providing for, among other things, all payments payable in
respect of the related Pledged Residual Interest Assets to be paid directly to
the Collection Account for the benefit of the Issuer Secured Parties;

                  (k) an update satisfactory to the Administrative Agent with
respect to litigation matters relating to CPS or any Affiliates of CPS; and

                  (l) CPS and the Administrative Agent shall have mutually
agreed upon the form of the Settlement Date Statement attached as EXHIBIT E to
the Indenture.

                                   ARTICLE VII
                                    COVENANTS

         SECTION 7.01 AFFIRMATIVE COVENANTS. Prior to the termination of this
Agreement and each other Basic Document and the indefeasible payment of all
obligations hereunder and thereunder:

                  (a) NOTICE OF DEFAULTS, LITIGATION, ADVERSE JUDGMENTS, ETC.
CPS or the Issuer, as applicable, shall give notice to Administrative Agent
promptly in writing:

                           (i) upon CPS or the Issuer, as the case may be,
         becoming aware of, and in any event within two (2) Business Days after,
         the occurrence of any Event of Default or Default or any event of
         default or default under any other Basic Document or any other material
         agreement of CPS or any Specified Affiliate of CPS;

                           (ii) upon, and in any event within two (2) Business
         Days after, service of process on CPS or the Issuer, as the case may
         be, or any agent thereof for service of process, in respect of any
         legal or arbitrable proceedings affecting CPS, the Issuer or any other
         Specified Affiliate of CPS (x) that questions or challenges the
         validity or enforceability of any of the Basic Documents, (y) in which
         the amount in controversy exceeds $1,000,000 or (z) that could
         reasonably be expected to have a Material Adverse Effect;

                                      -16-
<PAGE>

                           (iii) upon, and in any event within two (2) Business
         Days after, CPS or the Issuer, as the case may be, becoming aware of
         any event or change in circumstances that could reasonably be expected
         to (A) have a Material Adverse Effect, (B) constitute a Material
         Adverse Change or (C) cause an Event of Default;

                           (iv) upon, and in any event within two (2) Business
         Days after, CPS or the Issuer, as the case may be, becoming aware of
         entry of a judgment or decree in respect of CPS, the Issuer or any
         other Specified Affiliate of CPS, its respective assets or any of the
         Collateral in an amount in excess of $1,000,000; and

                           (v) upon any governmental inquiry, whether formal or
         informal, or the initiation of any legal process, litigation,
         arbitration, or administrative, regulatory or judicial investigation
         against or concerning the CPS, the Issuer or any other Specified
         Affiliate of CPS potentially involving an amount (i) in excess of
         $1,000,000 or (ii) less than $1,000,000 and is otherwise material,
         including without limitation any putative class action.

         Each notice pursuant to this subsection (a) shall be accompanied by a
         statement of an officer of CPS or the Issuer, as applicable, setting
         forth details of the occurrence referred to therein and stating what
         action CPS and the Issuer, as the case may be, have taken or propose to
         take with respect thereto.

                  (b) TAXES. Each of CPS and the Issuer shall pay and discharge
all taxes and governmental charges upon it (including as a result of being a
member of any consolidated or unitary tax group) or against any of its
properties or assets or its income prior to the date after which penalties
attach for failure to pay, except to the extent that CPS or the Issuer, as
applicable, shall be contesting in good faith in appropriate proceedings its
obligation to pay such taxes or charges, adequate reserves having been set aside
for the payment thereof in accordance with GAAP.

                  (c) CONTINUITY OF BUSINESS AND COMPLIANCE WITH AGREEMENT AND
LAW. Each of CPS and the Issuer shall:

                           (i) preserve and maintain its legal existence;

                           (ii) comply with the requirements of all applicable
         laws, rules, regulations and orders of governmental authorities and
         other Requirements of Law (including, without limitation, Consumer Laws
         and all environmental laws);

                           (iii) keep adequate records and books of account, in
         which complete entries will be made in accordance with GAAP
         consistently applied;

                           (iv) not move its chief executive office or chief
         operating office from the addresses referred to herein or change its
         jurisdiction of organization unless it shall have provided the
         Administrative Agent 30 days prior written notice of such change;

                           (v) pay and discharge all taxes, assessments and
         governmental charges or levies imposed on it or on its income or
         profits or on any of its property prior to the date on which penalties
         attach thereto, except for any such tax, assessment, charge or levy the
         payment of which is being contested in good faith and by proper
         proceedings and against which adequate reserves are being maintained;
         and

                           (vi) continue in business in a prudent, reasonable
         and lawful manner with all licenses, rights, permits, franchises and
         qualifications necessary to perform its respective obligations under
         this Agreement, the Sale and Contribution Agreement, the Notes and the
         other Basic Documents.

                                      -17-
<PAGE>

                  (d) OWNERSHIP OF THE ISSUER. CPS shall own beneficially and of
record 100% of the membership interests in the Issuer free and clear of all
Liens.

                  (e) [RESERVED.]

                  (f) COLLATERAL STATEMENTS. The Issuer will furnish or cause to
be furnished to the Administrative Agent from time to time statements and
schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as Administrative Agent may reasonably
request, all in reasonable detail, including without limitation each statement,
certificate and report required to be delivered to the Trustee or the
Noteholders under any Basic Document.

                  (g) COMPLIANCE CERTIFICATE. Each of CPS and the Issuer shall
deliver or cause to be delivered a Compliance Certificate to the Administrative
Agent within 75 days after the end of each fiscal year and within 30 days after
the end of each other fiscal quarter or, if such day is not a Business Day, the
immediately preceding Business Day.

                  (h) ACTIONS TO ENFORCE RIGHTS UNDER CONTRACTS. CPS and the
Issuer shall take such reasonable and lawful actions as the Administrative Agent
shall request to enforce Administrative Agent's rights under the Collateral,
and, following the occurrence of an Event of Default, shall take such reasonable
and lawful actions as are necessary to enable Administrative Agent to exercise
such rights in Administrative Agent's own name.

                  (i) MONTHLY SERVICER'S CERTIFICATE. CPS shall deliver to the
Note Purchaser, the Administrative Agent and the Trustee, in a computer-readable
format reasonably acceptable to each such Person (i) the monthly servicer's
certificate (each, a "MONTHLY SERVICER'S CERTIFICATE") with respect to each
Eligible Committed Securitization for which a Residual Interest Certificate has
been pledged to the Trustee pursuant to the Indenture at the same time such
Monthly Servicer's Certificate is required to be delivered pursuant to the
applicable Securitization Transaction Documents and (ii) a Settlement Date
Statement pursuant to Section 3.9(a) of the Indenture no later than 12:00 noon,
New York City time, on each Determination Date. CPS shall deliver to the
Administrative Agent and the Trustee a hard copy of any such Monthly Servicer's
Certificate or Settlement Date Statement upon request of such Person.

                  (j) SEPARATE EXISTENCE; NO COMMINGLING. Until the Notes are
repaid in full and all of the Basic Documents are terminated, the Issuer shall
limit its activities to such activities as are incident to and necessary or
convenient to accomplish the following purposes: (i) to acquire, own, hold,
pledge, finance and otherwise deal with Residual Interest Assets to be pledged
to the Trustee for the benefit of the Issuer Secured Parties pursuant to the
Indenture and (ii) to sell, securitize or otherwise liquidate all or any portion
of such Residual Interest Assets in accordance with the provisions of the Basic
Documents. In addition, prior to the payment of the Notes in full and
termination of all of the Basic Documents, the Issuer shall observe and comply
with the applicable legal requirements for the recognition of the Issuer as a
legal entity separate and apart from its Affiliates, including without
limitation, those requirements set forth in SECTION 9(b)(iv) of the Issuer's
Limited Liability Company Agreement. Without limiting the foregoing, the Issuer
shall, and CPS shall cause itself and any other Affiliates of the Issuer to,
maintain the truth and accuracy of all facts assumed by Andrews Kurth LLP in the
true sale and non consolidation opinions of Andrews Kurth LLP; provided that in
the event that any request is made for the Administrative Agent to consent to or
approve any matter that, if effectuated or consummated, would result in a change
to the continuing truth and accuracy of any of the factual assumptions in the
true sale or non consolidation opinions of Andrews Kurth LLP, such request shall
be accompanied by an opinion of Andrews Kurth LLP, or such other counsel as may
be reasonably satisfactory to the Administrative Agent, that the conclusions set
forth in the true sale and non consolidation opinions of Andrews Kurth LLP will
be unaffected by such change.

                                      -18-
<PAGE>

                  (k) OTHER LIENS OR INTERESTS. Except for the conveyances under
the Sale and Contribution Agreement prior to the Effective Date, CPS shall not
sell, pledge, assign or transfer to any other Person, or grant, create, incur,
assume or suffer to exist any lien on or any interest in, the Residual Interest
Assets or any other Collateral. Except for the pledge pursuant to the Indenture,
the Issuer shall not sell, pledge, assign or transfer to any other Person, or
grant, create, incur, assume or suffer to exist any lien on or any interest in,
the Residual Interest Assets or any other Collateral. CPS and the Issuer shall,
at their own expense, defend the Collateral against, and will take such other
action as is necessary to remove, any Lien, security interest or claim on, in or
to the Collateral, other than the security interests created under the Sale and
Contribution Agreement and the Indenture, respectively, and CPS and the Issuer
will defend the right, title and interest of the Issuer Secured Parties in and
to any of the Collateral against the claims and demands of all Persons
whomsoever. From time to time, each of CPS and the Issuer shall cause to be
taken such actions as are necessary to continue and maintain the perfection of
the first priority security interest of the Trustee on behalf of the Issuer
Secured Parties in the Collateral, including, without limitation, the filing of
financing statements, amendments thereto and continuation statements.

                  (l) BOOKS AND RECORDS; OTHER INFORMATION.

                           (i) Each of CPS and the Issuer shall maintain
         accounts and records as to each of the Pledged Residual Interest
         Certificates accurately and in sufficient detail to permit the reader
         thereof to know at any time the status of such Pledged Residual
         Interest Certificate, including all distributions made in respect of
         such Pledged Residual Interest Certificate. CPS shall maintain accurate
         and complete books and records with respect to the Pledged Residual
         Interest Certificates and with respect to CPS's business. The Issuer
         shall maintain accurate and complete books and records with respect to
         the Collateral and the Issuer's business. All accounting books and
         records shall be maintained in accordance with GAAP.

                           (ii) Each of CPS and the Issuer shall, and shall
         cause each of its Affiliates to, permit any representative of the
         Administrative Agent, a Noteholder or the Trustee to visit and inspect
         any of the properties of CPS, the Issuer and such Affiliates to examine
         the books and records of CPS, the Issuer and such Affiliates, as
         applicable, and to make copies and take extracts therefrom, and to
         discuss the business, operations, properties, condition (financial or
         otherwise) or prospects of CPS, the Issuer and each such Affiliate, as
         applicable, or any of the Collateral with the officers and independent
         public accountants thereof and as often as the Administrative Agent, a
         Noteholder or the Trustee may reasonably request, and so long as no
         Default or Event of Default shall have occurred and be continuing, all
         at such reasonable times during normal business hours upon reasonable
         notice; provided that, after a Default or Event of Default shall have
         occurred and be continuing, the Administrative Agent, a Noteholder or
         the Trustee shall make such inspections, examine such documents and
         conduct such discussions at such times as it may determine in its sole
         discretion.

                           (iii) Each of CPS and the Issuer shall promptly
         provide to the Administrative Agent all information regarding its
         respective operations and practices and the Collateral as the
         Administrative Agent shall reasonably request.

                           (iv) Each of CPS and the Issuer shall furnish or
         cause to be furnished to the Administrative Agent, as soon as publicly
         available, copies of (w) any and all Relevant Reports that CPS or the
         Issuer sends to its respective shareholders or members, (x) all
         reports, correspondence and other information provided by CPS to its
         unsecured noteholders, (y) copies of all (if any) regular, periodic and
         special reports, and all registration statements publicly filed by CPS
         or any Affiliate of CPS with the Securities and Exchange Commission or
         any Governmental Authority that supervises the issuance of securities
         by CPS, the Issuer or any other Affiliate of CPS, and (z) any press
         releases concerning CPS or the Issuer.

                                      -19-
<PAGE>

                  (m) FULFILLMENT OF OBLIGATIONS. Each of CPS and the Issuer
shall pay and perform, as and when due, all of its obligations of whatever
nature, except where the amount or validity thereof is currently being contested
in good faith by appropriate proceedings and reserves in conformity with GAAP
with respect thereto have been provided on the books of CPS or the Issuer, as
applicable.

                  (n) COMPLIANCE WITH LAWS, ETC. Each of CPS and the Issuer
shall, and CPS shall cause each of its Subsidiaries to, comply (i) in all
material respects with all Requirements of Law and any change therein or in the
application, administration or interpretation thereof (including, without
limitation any request, directive, guideline or policy, whether or not having
the force of law) by any Governmental Authority charged with the administration
or interpretation thereof; and (ii) with all indentures, mortgages, deeds of
trust, agreements, or other instruments or contractual obligations to which it
is a party, including without limitation, each Basic Document to which it is a
party, or by which it or any of its properties may be bound or affected, or
which may affect the Collateral.

                  (o) COMPLIANCE WITH BASIC DOCUMENTS. CPS, in its capacity as
Seller or otherwise, shall comply with each of its covenants contained in the
Basic Documents.

                  (p) FINANCING STATEMENTS. Each of CPS and the Issuer shall
defend the Collateral against, and shall take such other action as is necessary
to remove, any Lien, security interest or claim on or to the Collateral, other
than the security interests created under the this Agreement, and each of CPS
and the Issuer will defend the right, title and interest of the Issuer Secured
Parties in and to any of the Collateral against the claims and demands of all
Persons whomsoever. From time to time, CPS and the Issuer shall cause to be
taken such actions as are necessary to continue and maintain the perfection of
the first priority security interest of the Trustee for the benefit of the
Issuer Secured Parties in the Collateral, including, without limitation, the
filing of financing statements, amendments thereto and continuation statements
as the Administrative Agent determines may be required by law to perfect,
maintain and protect the first priority security interest of the Issuer Secured
Parties in the Collateral.

                  (q) PAYMENT OF FEES AND EXPENSES. CPS and the Issuer shall pay
to the Note Purchaser and the Administrative Agent, on demand, any and all fees,
costs or expenses that the Note Purchaser and the Administrative Agent pays to a
bank or other similar institution arising out of or in connection with the
return of payments from CPS or the Issuer deposited for collection by the Note
Purchaser and the Administrative Agent.

                  (r) FINANCIAL STATEMENTS AND ACCESS TO RECORDS. CPS shall
provide the Administrative Agent with quarterly unaudited financial statements
within forty-five (45) days of the end of each of CPS's first three fiscal
quarters, and CPS will provide the Administrative Agent with audited financial
statements within ninety (90) days of each of CPS's fiscal year-end audited by a
nationally recognized independent certified public accounting firm. Within 30
days after the end of each calendar month prior to the termination of the Basic
Documents, CPS shall provide the Administrative Agent with unaudited monthly
financial statements for the immediately preceding calendar month. CPS shall
deliver to the Administrative Agent with each financial statement a certificate
by CPS's chief financial officer, certifying that such financial statements are
complete and correct in all material respects and that, except as noted in such
certificate, such chief financial officer has no knowledge of any Default or
Event of Default. In connection with each report filed by CPS under Section
13(a) of the Exchange Act during the Term, CPS shall be deemed to have
represented and warranted to the Administrative Agent that, as of the related
filing date, the financial statements contained in such report are complete and
correct in all material respects and that, unless otherwise specified in such
report, CPS has no knowledge of any Default or Event of Default as of such
filing date.

                  (s) LITIGATION MATTERS. CPS shall notify the Administrative
Agent in writing, promptly upon its learning thereof, of the assertion of any
governmental claim, whether formal or informal, or the initiation of any legal
process, litigation, arbitration, or administrative, regulatory or judicial
investigation against or concerning CPS, the Issuer or any other Affiliate of
CPS, in each case potentially involving an amount (i) in excess of $1,000,000 or
(ii) less than $1,000,000 if otherwise material, including without limitation
any putative class action.

                                      -20-
<PAGE>

                  (t) NOTICE OF CHANGE OF CHIEF EXECUTIVE OFFICE. CPS and the
Issuer shall provide the Administrative Agent with not less than thirty (30)
days prior written notice of any change in the chief executive office or
jurisdiction of incorporation or organization of CPS or the Issuer to permit the
Administrative Agent to make any additional filings necessary to continue the
perfected security interest of the Issuer Secured Parties in the Collateral.

                  (u) FINANCIAL COVENANTS. CPS shall satisfy each of the
financial covenants set forth on SCHEDULE I hereto; provided that compliance
with the financial covenant set forth in clause 3 of SCHEDULE I shall be
reported to the Administrative Agent on a quarterly basis at the end of each
fiscal quarter, unless the Administrative Agent otherwise notifies CPS to report
compliance with such covenant to the Administrative Agent on a monthly basis.

                  (v) NOTICE OF BREACH OF SECURITIZATION TRIGGERS AND FINANCIAL
COVENANTS. CPS shall promptly notify the Administrative Agent in writing upon
the occurrence of a breach of any performance trigger or financial covenant
related to any Securitization Transaction.

                  (w) CHANGES TO SERVICING POLICIES. CPS will notify the
Administrative Agent in writing promptly after making any material changes to
its servicing policies.

                  (x) DATA FILES FOR SECURITIZATION TRANSACTIONS. On or prior to
the Determination Date each month, CPS will provide the Administrator with
electronic data files for each Securitization Transaction related to a Pledged
Residual Interest Certificate, together with an Officer's Certificate of CPS
certifying that such data files are complete and correct in all material
respects and that, except as noted in such certificate, such officer has no
knowledge of any Default or Event of Default.

                  (y) INSURANCE. Prior to the termination of the Basic
Documents, CPS shall maintain such insurance as is generally acceptable to
prudent institutional investors and usual and customary for similar companies in
its industry.

                  (z) SERVICING. CPS, as servicer for each Securitization
Transaction related to a Pledged Residual Interest Certificate, shall manage,
service, administer and make collections with respect to each such
Securitization Transaction with reasonable care, using that degree of skill and
attention customary and usual for institutions which service motor vehicle
retail installment contracts similar to such Securitization Transaction and, to
the extent more exacting, that CPS exercises with respect to all comparable
automotive receivables that it services for itself or others.

                  (aa) RATINGS OF ELIGIBLE COMMITTED SECURITIZATIONS. CPS shall
use commercially reasonable best efforts to have the securities issued by each
Securitization Issuer pursuant to its Securitization Transaction Documents rated
by Moody's and S&P (without giving effect to any insurance policy issued by a
monoline insurer).

                  (bb) CONTINUATION OF AND CHANGE IN BUSINESSES. CPS shall cause
each of its Excluded Subsidiaries to continue to engage in the same business or
businesses it engaged in on the Effective Date; PROVIDED, HOWEVER, any of such
Excluded Subsidiaries may be dissolved or liquidated by CPS at any time.

         SECTION 7.02 NEGATIVE COVENANTS. Prior to the termination of this
Agreement and each other Basic Document and the indefeasible payment of all
obligations hereunder and thereunder:

                  (a) ADVERSE TRANSACTIONS. None of CPS, the Issuer or any other
Affiliate of CPS shall enter into or permit any transaction that adversely
affects the Collateral or the Note Purchaser's interest therein, the Note
Purchaser's or the Administrative Agent's rights under this Agreement, the Notes
or any other Basic Document, the Issuer's interest in the Conveyed Property
pursuant to the Sale and Contribution Agreement, or the Trustee's security
interest in the Collateral pursuant to the Indenture.

                                      -21-
<PAGE>

                  (b) GUARANTEES. The Issuer shall not guarantee or otherwise in
any way become liable with respect to the obligations or liabilities of any
other Person.

                  (c) DIVIDENDS. The Issuer shall not declare or pay any
dividends except to the extent of funds legally available therefor from payments
received by the Issuer pursuant to SECTION 8.5 of the Indenture. Notwithstanding
the foregoing, the Issuer shall not declare or pay any dividends on any date as
of which a Principal Coverage Ratio Violation, a Default or an Event of Default
shall have occurred and is continuing. CPS shall not declare or pay any cash
dividends if the amount of such dividends would exceed the quarterly and annual
earnings of CPS (on an annualized basis) before taking into account income
taxes, or if such dividend (either before or after giving effect thereto) would
cause CPS to breach any financial covenant set forth in SECTION 7.01(u) hereof.

                  (d) INVESTMENTS. The Issuer shall not make any investment in
any Person through the direct or indirect holding of securities or otherwise.

                  (e) CHANGES IN CAPITAL STRUCTURE OR BUSINESS OBJECTIVES OF THE
ISSUER. The Issuer shall not do any of the following if it will adversely affect
the payment or performance of, or the Issuer's ability to pay and/or perform,
its obligations to the Note Purchaser with respect to this Agreement or any
other Basic Document to which it is a party, or the Notes, or if it could be
reasonably expected to: (i) cancel any of the membership interests in the
Issuer, (ii) make any change in the capital structure of the Issuer, or (iii)
make any material change in any of its business objectives, purposes or
operations that could reasonably be expected to adversely affect the payment or
performance of, or the Issuer's ability to pay and/or perform, its obligations
to Note Purchaser or the Administrative Agent with respect to this Agreement or
any other Basic Document to which it is a party, or the Notes.

                  (f) NO RELEASES OF COLLATERAL. Neither CPS or the Issuer shall
permit the Collateral to be released from the lien of the Indenture, except upon
satisfaction and release of the Indenture in accordance with Article IV thereof.

                  (g) NO LIENS ON EQUITY INTERESTS IN THE ISSUER. CPS shall not
grant or otherwise create any Lien on the membership interests in the Issuer (or
any other equity interest in the Issuer) without the prior written consent of
the Administrative Agent.

                  (h) NO INDEBTEDNESS. The Issuer will not at any time incur any
Indebtedness, other than Indebtedness incurred under (or contemplated by) the
terms of the Basic Documents.

                  (i) NO OTHER BUSINESS. The Issuer will not at any time engage
in any other business activities than the purchase of the Residual Interest
Assets, pledging the Collateral to the Trustee under the Indenture, issuing the
Notes and other activities relating to the foregoing to the extent permitted by
the organizational documents of the Issuer as in effect on the date hereof, or
as amended with the prior written consent of the Administrative Agent. Without
limitation of the foregoing, the Issuer will not at any time be an issuer of
securities other than the Notes or a borrower under any loan or financing
agreement, facility or other arrangement other than the facility established
pursuant to this Agreement and the other Basic Documents.

                  (j) NO AMENDMENT TO ISSUER'S OPERATING AGREEMENT OR ANY BASIC
DOCUMENT WITHOUT CONSENT. Neither the Limited Liability Company Agreement of the
Issuer, nor any Basic Document, shall be amended, supplemented or otherwise
modified without the prior written consent of the Administrative Agent.

                  (k) TRANSACTIONS WITH AFFILIATES. The Issuer shall not enter
into, or be a party to, any transaction with any of its Affiliates, except in
accordance with the requirements set forth in Section 9(b)(iv) of its Limited
Liability Company Agreement.

                                      -22-
<PAGE>

                  (l) NONPETITION. Notwithstanding any prior termination of this
Agreement, the Seller will not, prior to the date that is one year and one day
after the day upon which the outstanding principal amount of the Notes has been
reduced to zero and all Issuer Secured Obligations have been paid in full,
acquiesce, petition or otherwise invoke or cause the Issuer to invoke the
process of any court or government authority for the purpose of commencing or
sustaining a case against the Issuer under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Issuer or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Issuer.

                  (m) PROTECTION OF TITLE TO COLLATERAL. None of the Seller, the
Purchaser or the Issuer shall change its name, identity, jurisdiction of
organization, form of organization or corporate structure in any manner that
would, could or might make any financing statement or continuation statement
filed with respect to the Collateral seriously misleading within the meaning of
Section 9-506(a) of the UCC, unless it shall have given the Administrative Agent
at least 30 days' prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or
continuation statements.

                  (n) FURTHER COVENANTS. Without prior written consent of the
Administrative Agent, none of CPS, the Issuer or any other Affiliate of CPS
will: (i) assign, sell, transfer, pledge or grant any security interest in or
Lien on any of the Collateral to anyone except the Trustee for the benefit of
the Issuer Secured Parties, permit any financing statement or assignment (except
for any assignments in favor of the Trustee for the benefit of the Issuer
Secured Parties) to be on file in any public office with respect thereto, (ii)
permit or suffer to exist any security interest, lien, charge, encumbrance or
right of others to attach to any of the Collateral, except as contemplated by
this Agreement, or (iii) consent to any amendment or supplement to any ABS
Issuance Agreement that would have a Material Adverse Effect.

                  (o) SHARE REPURCHASES. CPS shall not repurchase more than five
percent (5.0%) of the issued and outstanding shares of its common stock (on a
fully-diluted basis) during the period from the Initial Closing Date through the
first anniversary thereof; CPS shall not repurchase more than five percent
(5.0%) of the issued and outstanding shares of its common stock (on a
fully-diluted basis) during the period from the first anniversary of the Initial
Closing Date through the second anniversary thereof. CPS's purchase of shares of
its common stock from Levine Leichtman Capital Partners II, L.P. for an
aggregate purchase price not to exceed $10,000,000 is excluded from the
foregoing restrictions.

                  (p) ACTIONS WITH RESPECT TO THE PLEDGED RESIDUAL INTEREST
CERTIFICATES AND ANY OTHER COLLATERAL. Unless it has received the prior written
consent of the Administrative Agent and the Majority Noteholders, none of CPS,
the Issuer or any other Affiliate of CPS shall take any action, fail to take any
action, give any consent, permit any action, enter into or permit any amendment,
waiver, supplement or other modification under or in respect of any Pledged
Residual Interest Certificate or any other Collateral, or enter into or permit
any amendment, waiver, supplement or other modification of any agreement,
document or instrument governing the rights of any Pledged Residual Interest
Certificate, that could reasonably be expected to, or would, (i) reduce in any
manner the amount of, or accelerate or delay the timing of, distributions that
are required to be made on the Pledged Residual Interest Certificates or any
other Collateral, (ii) cause or permit amounts on deposit in the spread account
for any Securitization Transaction pursuant to which a Pledged Residual Interest
Certificate has been issued or proceeds or distributions in respect of any
Pledged Residual Interest Certificate or any other Collateral to be available to
fund deficiencies in any other spread account relating to another Securitization
Transaction or (iii) otherwise have a Material Adverse Effect.

                                  ARTICLE VIII
                              ADMINISTRATIVE AGENT

         SECTION 8.01 AUTHORIZATION AND ACTION. Each party hereto and each
Noteholder hereby accepts the appointment of and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers as

                                      -23-
<PAGE>

are delegated to the Administrative Agent by the terms of this Note Purchase
Agreement or the other Basic Documents, together with such powers as are
reasonably incidental thereto. The Administrative Agent reserves the right, in
its sole discretion, to take any actions and exercise any rights or remedies
under this Note Purchase Agreement, any other Basic Document and any related
agreements and documents. Except for actions which the Administrative Agent is
expressly required to take pursuant to this Note Purchase Agreement or any other
Basic Document, the Administrative Agent shall not be required to take any
action which exposes the Administrative Agent to personal liability or which is
contrary to applicable law unless the Administrative Agent shall receive further
assurances to its satisfaction from the parties hereto of the indemnification
obligations under Section 1.04 hereof against any and all liability and expense
which may be incurred in taking or continuing to take such action.

         SECTION 8.02 ADMINISTRATIVE AGENT'S RELIANCE, ETC.. Neither the
Administrative Agent nor any of its respective directors, officers, agents or
employees shall be liable to any Indemnified Party for any action taken or
omitted to be taken by the Administrative Agent or any of its respective
directors, officers, agents or employees as Administrative Agent under or in
connection with this Note Purchase Agreement, any other Basic Document or any
related agreement or document, except for its or their own gross negligence or
willful misconduct as determined by a court of competent jurisdiction in a final
and non-appealable decision. Without limiting the foregoing, the Administrative
Agent: (i) may consult with legal counsel, independent public accountants and
other experts selected by it and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (ii) makes no warranty or representation to any
party hereto or any Noteholder, and shall not be responsible to any Noteholder,
for any recitals, statements, warranties or representations made by the Issuer
or CPS in connection with this Note Purchase Agreement or any other Basic
Document or in any certificate, report, statement or other document referred to
or provided for in, or received under or in connection with, this Note Purchase
Agreement or any other Basic Document; (iii) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Note Purchase Agreement or any other Basic
Document on the part of the Issuer or CPS or to inspect the property (including
the books and records) of the Issuer or CPS; (iv) shall not be responsible to
any party hereto or any Noteholder for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Note Purchase
Agreement, any other Basic Document or any other instrument or document
furnished pursuant hereto; and (v) shall incur no liability under or in respect
of this Note Purchase Agreement or any other Basic Document by acting upon any
notice (including notice by telephone), consent, certificate or other instrument
or writing (which may be by telex) believed by it in good faith to be genuine
and signed or sent by the proper party or parties. The Administrative Agent
shall not be deemed to have knowledge of any Default or Event of Default unless
the Administrative Agent has received notice thereof from the Issuer, CPS or any
Noteholder.

         SECTION 8.03 ADMINISTRATIVE AGENT AND AFFILIATES. The Administrative
Agent and its Affiliates may generally engage in any kind of business with the
Issuer or CPS, any of their respective Affiliates and any Person who may do
business with or own securities of the Issuer or CPS or any of their respective
Affiliates, all as if such entity were not the Administrative Agent and without
any duty to account therefor to the Noteholders, as the case may be.

         SECTION 8.04 INDEMNIFICATION. Each Noteholder agrees to indemnify the
Administrative Agent (to the extent not reimbursed by the Issuer), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against the
Administrative Agent in any way relating to or arising out of this Note Purchase
Agreement or any other Basic Document or any action taken or omitted by the
Administrative Agent under this Note Purchase Agreement or any other Basic
Document; provided that no Noteholder shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting or arising from the Administrative
Agent's gross negligence or willful misconduct as is determined by a court of
competent jurisdiction in a final and non-appealable decision. Without

                                      -24-
<PAGE>

limitation of the generality of the foregoing, each Noteholder agrees to
reimburse the Administrative Agent, promptly upon demand, for any reasonable
out-of-pocket expenses (including reasonable counsel fees) incurred by the
Administrative Agent in connection with the administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Note Purchase Agreement or any other Basic Document, provided that no
Noteholder shall be responsible for the costs and expenses of the Administrative
Agent in defending itself against any claim alleging the gross negligence or
willful misconduct of the Administrative Agent to the extent such gross
negligence or willful misconduct is determined by a court of competent
jurisdiction in a final and non-appealable decision.

         SECTION 8.05 PURCHASE DECISION. Each party hereto and each Noteholder
acknowledges that it has, independently and without reliance upon the
Administrative Agent, any other party hereto or any of their respective
Affiliates, and based on such documents and information as it has deemed
appropriate, made its own evaluation and decision to enter into this Note
Purchase Agreement and undertake the obligations of such party hereunder.

         SECTION 8.06 RELIANCE. The Administrative Agent shall in all cases be
entitled to rely, and shall be fully protected in relying, upon any document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of
legal counsel (including, without limitation, counsel to the Issuer and/or CPS),
independent accountants and other experts selected by the Administrative Agent.
The Administrative Agent shall in all cases be fully justified in failing or
refusing to take any action under this Agreement or any other document furnished
in connection herewith unless it shall first receive such advice or concurrence
of any Noteholder as it deems appropriate or it shall first be indemnified to
its satisfaction by any Noteholder, provided that unless and until the
Administrative Agent shall have received such advice, the Administrative Agent
may take or refrain from taking any action, as the Administrative Agent shall
deem advisable and in the best interests of the Noteholders. The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, in accordance with a request of the Majority Noteholders and such
request and any action taken or failure to act pursuant thereto shall be binding
upon the Noteholders.

         SECTION 8.07 NON-RELIANCE ON ADMINISTRATIVE AGENT. Each of the
Noteholders expressly acknowledge that neither the Administrative Agent nor any
of its officers, directors, employees, agents, attorneys-in-fact or affiliates
has made any representations or warranties to it and that no act by the
Administrative Agent hereafter taken, including, without limitation, any review
of the affairs of the Issuer or CPS, shall be deemed to constitute any
representation or warranty by the Administrative Agent. Each of the Noteholders
represent and warrant to the Administrative Agent that they have and will,
independently and without reliance upon the Administrative Agent and based on
such documents and information as they have deemed appropriate, made their own
appraisal of and investigation into the business, operations, property,
prospects, financial and other conditions and creditworthiness of the Issuer and
CPS and made its own decision to enter into this Note Purchase Agreement.

         SECTION 8.08 SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent
may resign at any time by giving 30 days' written notice thereof to the Note
Purchaser, the Issuer and CPS. Upon any such resignation by the Administrative
Agent, the Majority Noteholders shall have the right to appoint a successor
Administrative Agent. If no successor Administrative Agent shall have been so
appointed by the Majority Noteholders, and shall have accepted such appointment,
within 30 days after the retiring Administrative Agent's giving of notice or
resignation, then the retiring Administrative Agent may, on behalf of the Note
Purchaser, the Issuer and CPS, appoint a successor Administrative Agent. If for
any reason a successor Administrative Agent is not appointed by the retiring
Administrative Agent, the Noteholders shall perform all of the duties of the
retiring Administrative Agent and the Issuer shall for all purposes shall deal
directly with the Noteholders. Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor Administrative Agent, such

                                      -25-
<PAGE>

successor Administrative Agent shall thereupon succeed to and become vested with
all of the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and obligations under this Note Purchase Agreement. After any Administrative
Agent's resignation hereunder as Administrative Agent, the provisions of this
ARTICLE VIII shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was the Administrative Agent under this Note Purchase
Agreement.

                                   ARTICLE IX
                            MISCELLANEOUS PROVISIONS

         SECTION 9.01 AMENDMENTS. No amendment to or waiver of any provision of
this Agreement, nor consent to any departure by the Seller, the Issuer, the
Administrative Agent or the Note Purchaser therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Seller, the
Issuer, the Administrative Agent and the Note Purchaser.

         SECTION 9.02 NO WAIVER; REMEDIES. Any waiver, consent or approval given
by any party hereto shall be effective only in the specific instance and for the
specific purpose for which given, and no waiver by a party of any breach or
default under this Agreement or any other Basic Document shall be deemed a
waiver of any other breach or default. No failure on the part of any party
hereto to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right hereunder, or any abandonment or discontinuation of steps to enforce the
right, power or privilege, preclude any other or further exercise thereof or the
exercise of any other right. No notice to or demand on any party hereto in any
case shall entitle such party to any other or further notice or demand in the
same, similar or other circumstances. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

         SECTION 9.03 BINDING ON SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon, and inure to the benefit of, the Issuer, the Purchaser, the
Seller, the Note Purchaser, the Administrative Agent and their respective
successors and assigns; PROVIDED, HOWEVER, that none of the Issuer, the
Purchaser or the Seller may assign its rights or obligations hereunder or in
connection herewith or any interest herein (voluntarily, by operation of law or
otherwise) without the prior written consent of the Administrative Agent.
Nothing expressed herein is intended or shall be construed to give any Person
other than the Persons referred to in the preceding sentence any legal or
equitable right, remedy or claim under or in respect of this Agreement.

         SECTION 9.04 TERMINATION; SURVIVAL OF AGREEMENT. The obligations and
responsibilities of the Note Purchaser created hereby shall terminate on the
Facility Termination Date. All covenants, agreements, representations and
warranties made herein and in the Notes delivered pursuant hereto shall survive
the execution and delivery of this Agreement and the Notes and shall continue in
full force and effect until all interest and principal on the Notes and other
amounts owed hereunder and under the Basic Documents have been paid in full and
the commitment of the Note Purchaser hereunder has been terminated. In addition,
the obligations of the Issuer, the Seller and the Note Purchaser under SECTIONS
3.03, 3.04, 3.05 and 9.05, 9.11, 9.12, 9.13 and 9.16 shall survive the
termination of this Agreement.

         SECTION 9.05 PAYMENT OF COSTS AND EXPENSES; INDEMNIFICATION.

                  (a) PAYMENT OF COSTS AND EXPENSES.

                           (i) The Seller and the Issuer jointly and severally
         agree to pay on demand the reasonable expenses of the Administrative
         Agent and the Note Purchaser (including the reasonable out-of-pocket
         and legal expenses of the Administrative Agent and the Note Purchaser,
         if any) in connection with:

                                    (A) the negotiation, preparation, execution,
                           delivery and administration of this Agreement and of
                           each other Basic Document, including schedules and
                           exhibits, and the consummation of the transactions
                           contemplated by this Agreement and the other Basic
                           Documents; and

                                      -26-
<PAGE>

                                    (B) any amendments, waivers, consents,
                           supplements or other modifications to this Agreement
                           or any other Basic Document as may from time to time
                           hereafter be proposed.

                           (ii) The Issuer and the Seller further jointly and
         severally agree to (A) pay upon demand any stamp, documentary or other
         taxes which may be payable by the Note Purchaser in connection with the
         execution or delivery of this Agreement, or the issuance of the Notes
         or any other Basic Documents; and (B) hold and save the Administrative
         Agent and the Note Purchaser harmless from all liability for any breach
         by the Issuer of its obligations under this Agreement.

                           (iii) The Issuer shall pay on demand all reasonable
         out-of-pocket costs and expenses of the Administrative Agent and each
         Noteholder, including without limitation the reasonable fees and
         disbursements of counsel to the Administrative Agent and each
         Noteholder, in connection with the occurrence or continuance of a
         Default or Event of Default and the enforcement, collection, protection
         or preservation (whether through negotiations, legal proceedings or
         otherwise) of this Agreement or any other Basic Document, the
         Collateral, any Obligation or any right, remedy, power or privilege of
         the Administrative Agent or each Noteholder hereunder or under any
         other Basic Document.

                  (b) INDEMNIFICATION. In consideration of the execution and
delivery of this Agreement by the Note Purchaser and the Administrative Agent,
the Issuer and the Seller, jointly and severally, hereby indemnify and hold the
Note Purchaser and each of their respective officers, directors, employees and
agents (collectively, the "INDEMNIFIED PARTIES") harmless from and against any
and all actions, claims, penalties, judgments, causes of action, suits, losses,
costs, liabilities and damages, and reasonable expenses incurred in connection
therewith (irrespective of whether any such Indemnified Party is a party to the
action for which indemnification hereunder is sought and including, without
limitation, any liability in connection with the offering and sale of the
Notes), including reasonable attorneys' fees and disbursements (collectively,
the "INDEMNIFIED LIABILITIES"), incurred by the Indemnified Parties or any of
them (whether in prosecuting or defending against such actions, suits or claims)
in connection with, arising out of or in any way relating to any investigation,
claim, litigation or other proceeding, pending or threatened (whether or not any
of them is designated a party thereto) in connection with, as a result of, or
arising out of, or relating to:

                           (i) any transaction financed or to be financed in
         whole or in part (including, without limitation, any Residual Interest
         Certificate constituting part of the Collateral), directly or
         indirectly, with the proceeds from the Notes including, without
         limitation, any claim, suit or action related to such transaction,
         which claim is based on a violation of Consumer Laws or any applicable
         vicarious liability statutes, or the use or operation of any financed
         vehicle relating to a Securitization Transaction by any Person;

                           (ii) this Agreement or any other Basic Document, or
         the entering into and performance of this Agreement or any other Basic
         Document by any of the Indemnified Parties;

                           (iii) the Issuer making any payment or prepayment of
         principal on any Note on a day which is not a Business Day;

                           (iv) any default by the Issuer in making any payment
         on the Notes on the due date therefore; or

                           (v) any acceleration of the maturity of any Notes by
         the Noteholders in accordance with the terms of this Agreement and the
         Indenture, including, but not limited to, any cost, loss or expense
         arising in liquidating the Notes and from interest or fees payable by
         the Noteholders to lenders of funds obtained by it in order to maintain
         the Notes hereunder;

                                      -27-
<PAGE>

except for any such Indemnified Liabilities arising for the account of a
particular Indemnified Party by reason of the relevant Indemnified Party's gross
negligence or willful misconduct, as determined by a court of competent
jurisdiction in a final non-appealable judgment. If and to the extent that the
foregoing undertaking may be unenforceable for any reason, the Issuer and the
Seller hereby jointly and severally agree to make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law. The indemnity set forth in this SECTION
9.05(b) shall in no event include indemnification for any Taxes (which
indemnification is provided in Section 3.05). Upon the written request of the
Note Purchaser or the Administrative Agent pursuant to this SECTION 9.05(b), the
Issuer and the Seller shall promptly reimburse the Note Purchaser or the
Administrative Agent for the amount of any such Indemnified Liabilities incurred
by the Note Purchaser or the Administrative Agent.

         SECTION 9.06 CHARACTERIZATION AS BASIC DOCUMENT; ENTIRE AGREEMENT. This
Agreement shall be deemed to be a Basic Document for all purposes of the
Indenture and the other Basic Documents. This Agreement, together with the
Indenture, the Sale and Contribution Agreement, the Warrants, the Guaranty, the
documents delivered pursuant to SECTION 6.01 and the other Basic Documents,
including the exhibits and schedules thereto, contains a final and complete
integration of all prior expressions by the parties hereto with respect to the
subject matter hereof and shall constitute the entire agreement among the
parties hereto with respect to the subject matter hereof, superseding all
previous oral statements and other writings with respect thereto.

         SECTION 9.07 NOTICES. All notices, amendments, waivers, consents and
other communications provided to any party hereto under this Agreement shall be
in writing and addressed, delivered or transmitted to such party at its address
or email address set forth below its signature hereto or at such other address
or email address as may be designated by such party in a notice to the other
parties. Any notice, if mailed and properly addressed with postage prepaid or if
properly addressed and sent by pre-paid courier service, shall be deemed given
when received by the intended recipient thereof, if transmitted by email, notice
shall be deemed to have been duly given when transmitted by email (evidenced by
telephonic or written confirmation of receipt of such email). Without limiting
the obligation of the Issuer or CPS to deliver such information, if any
information that is required to be delivered by the Issuer or CPS under this
Agreement or any of the Basic Documents is material non-public information, the
Issuer or CPS, as applicable, shall notify the Note Purchaser and the
Administrative Agent in writing one Business Day prior to the delivery of such
information.

         SECTION 9.08 SEVERABILITY OF PROVISIONS. Any covenant, provision,
agreement or term of this Agreement that is prohibited or is held to be void or
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective
to the extent of the prohibition or unenforceability without invalidating the
remaining provisions of this Agreement.

         SECTION 9.09 TAX CHARACTERIZATION. Each party to this Agreement (a)
acknowledges that it is the intent of the parties to this Agreement that, for
accounting purposes and for all Federal, State and local income and franchise
tax purposes, the Notes will be treated as evidence of indebtedness issued by
the Issuer, (b) agrees to treat the Notes for all such purposes as indebtedness
and (c) agrees that the provisions of the Basic Documents shall be construed to
further these intentions.

         SECTION 9.10 FULL RECOURSE TO ISSUER. The obligations of the Issuer
under this Indenture and the other Basic Documents shall be full recourse
obligations of the Issuer. Notwithstanding the foregoing, except as provided for
in the Guaranty, no recourse shall be had for the payment of any amount owing in
respect of this Agreement, including the payment of any fee hereunder or any
other obligation or claim arising out of or based upon this Agreement, against
any certificateholder, member, employee, officer, manager, director, affiliate
or trustee of the Issuer; PROVIDED, HOWEVER, nothing in this SECTION 9.10 shall
relieve any of the foregoing Persons from any liability that any such Person may
otherwise have as expressly set forth in any Basic Document or for its gross
negligence, bad faith or willful misconduct. Nothing contained in this Section
shall limit or be deemed to limit any obligations of the Issuer, the Purchaser

                                      -28-
<PAGE>

or the Seller hereunder or under any other Basic Document, as applicable, which
obligations are full recourse obligations of the Issuer, the Purchaser and the
Seller.

         SECTION 9.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         SECTION 9.12 JURISDICTION. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY
OF THE PARTIES HEREUNDER WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN ANY
STATE OR (TO THE EXTENT PERMITTED BY LAW) FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE OF NEW YORK AND BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, ALL PARTIES HEREUNDER ACCEPT FOR THEMSELVES AND IN CONNECTION WITH
THEIR PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION
OF THE AFORESAID COURTS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT
RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT.

         SECTION 9.13 WAIVER OF JURY TRIAL. ALL PARTIES HEREUNDER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER, OR IN CONNECTION WITH, THIS NOTE PURCHASE AGREEMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF
THE PARTIES IN CONNECTION HEREWITH OR THEREWITH. ALL PARTIES ACKNOWLEDGE AND
AGREE THAT THEY HAVE RECEIVED FULL AND SIGNIFICANT CONSIDERATION FOR THIS
PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR ALL PARTIES TO
ENTER INTO THIS AGREEMENT.

         SECTION 9.14 COUNTERPARTS. This Agreement may be executed in any number
of counterparts (which may include facsimile) and by the different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original, and all of which together shall constitute one and the same
instrument.

         SECTION 9.15 SET-OFF. The obligations of the Issuer, the Purchaser and
the Seller hereunder are absolute and unconditional and each of the Issuer, the
Purchaser and the Seller expressly waives any and all rights of set-off,
abatement, diminution or deduction that the Issuer, the Purchaser or the Seller
may otherwise at any time have under applicable law.

                  (a) In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of such rights, during the
continuance of any Event of Default under the Indenture:

                           (i) the Note Purchaser is hereby authorized at any
         time and from time to time, without notice to the Purchaser or the
         Issuer, such notice being hereby expressly waived, to set-off any
         obligation owing by the Note Purchaser or any of its Affiliates to the
         Purchaser or the Issuer, or against any funds or other property of the
         Purchaser or the Issuer, held by or otherwise in the possession of the
         Note Purchaser or any of its Affiliates, the respective obligations of
         the Purchaser and the Issuer to the Note Purchaser under this Agreement
         and the other Basic Documents and irrespective of whether or not the
         Note Purchaser shall have made any demand hereunder or thereunder;

                                      -29-
<PAGE>

                           (ii) each of the Administrative Agent, the
         Noteholders and the Note Purchaser is hereby authorized at any time and
         from time to time, without notice to the Seller, such notice being
         hereby expressly waived, to set-off (a) any obligation owing by the
         Administrative Agent, any Noteholder or the Note Purchaser or any of
         its Affiliates to the Seller or (b) against any funds or other property
         of the Seller held by or otherwise in the possession of the
         Administrative Agent, any Noteholder or the Note Purchaser or any of
         its Affiliates, in each case, the respective obligations of the Seller
         to the Administrative Agent, any Noteholder or the Note Purchaser under
         this Agreement and the other Basic Documents and irrespective of
         whether or not the Administrative Agent, such Noteholder or the Note
         Purchaser shall have made any demand hereunder or thereunder; and

                           (iii) without limitation of the foregoing, each of
         the Administrative Agent, the Noteholders, the Note Purchaser and any
         Affiliate of the Administrative Agent, the Noteholders or the Note
         Purchaser is hereby authorized at any time and from time to time, to
         the fullest extent permitted by law, to set off and apply any and all
         deposits (general or special, time or demand, provisional or final) at
         any time held and other Indebtedness at any time owing by any of the
         Administrative Agent, the Noteholders, the Note Purchaser or any of
         their respective Affiliates to or for the credit or the account of the
         Seller or the Issuer against any and all of the obligations now or
         hereafter existing whether or not the Administrative Agent, the
         Noteholders or the Note Purchaser shall have made any demand under this
         Agreement or any other Basic Document and even though such obligations
         may be unmatured. Each of the Administrative Agent, the Noteholders
         and, the Note Purchaser agrees promptly to notify the Issuer after any
         such set-off and application made by any of the Administrative Agent,
         the Noteholders or the Note Purchaser; PROVIDED, HOWEVER, that the
         failure to give such notice shall not affect the validity of such
         set-off and application.

                           The rights of each of the Administrative Agent, the
         Noteholders and the Note Purchaser under this SECTION 9.15 are in
         addition to the other rights and remedies (including other rights of
         set-off) that any of the Administrative Agent, the Noteholders and the
         Note Purchaser may have.

         SECTION 9.16 NONPETITION COVENANTS. Notwithstanding any prior
termination of this Agreement, the Seller shall not, prior to the date that is
one year and one day after the day upon which the outstanding principal amount
of the Notes has been reduced to zero and all Issuer Secured Obligations have
been paid in full, acquiesce, petition or otherwise invoke or cause the
Purchaser or the Issuer to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the
Purchaser or the Issuer under any federal or state bankruptcy, insolvency or
similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Purchaser of the Issuer or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Purchaser or the Issuer.

         SECTION 9.17 ASSIGNMENT; PARTICIPATIONS. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Neither CPS nor the Issuer may assign any of
its respective rights or obligations hereunder, under the Notes or under any
other Basic Document without the prior written consent of the Administrative
Agent. The Note Purchaser may assign, participate or otherwise transfer to any
Affiliate of the Note Purchaser or any other Person all or any of its rights or
obligations under this Agreement and the other Basic Documents. CPS and the
Issuer agree to cooperate with the Note Purchaser in connection with any such
assignment or transfer, to execute and deliver such replacement notes, and to
enter into such restatements of, and amendments, supplements and other
modifications to, this Agreement and the other Basic Documents in order to give
effect to such assignment or transfer.

                                      -30-
<PAGE>

         SECTION 9.18 NOTE PURCHASER'S RIGHT TO PLEDGE. Nothing in this
Agreement shall preclude the Note Purchaser from engaging in transactions with
third parties involving the selling pursuant to a repurchase arrangement,
pledging or hypothecating of the Collateral, but no such transaction shall
relieve the Note Purchaser of its obligations hereunder. Notwithstanding any
such sale, pledge or hypothecation of the Collateral, the Issuer shall be
entitled to deal solely with the Note Purchaser with respect to such Collateral
and shall not be required to deal with any such third party unless a Default or
Event of Default shall have occurred and be continuing. The Note Purchaser
hereby grants to Issuer the right to perform in the Note Purchaser's stead under
any repurchase, reverse repurchase, loan or similar transaction in which the
Note Purchaser has sold, pledged or otherwise transferred any Pledged Residual
Interest Assets in the event that the Note Purchaser has defaulted on its
obligations to repurchase or accept redelivery of such Pledged Residual Interest
Assets in conformity with the terms of any such transaction and so long as an
Event of Default hereunder by the Issuer shall not have occurred and be
continuing.

         SECTION 9.19 SPECIFIC PERFORMANCE. Each of the Seller and the Issuer
expressly agrees that any breach or threatened breach of any duty, covenant,
undertaking, indemnity, agreement or obligation hereunder or under any other
Basic Document will cause irreparable harm to the Noteholder, the Note Purchaser
and the Administrative Agent and the Noteholder, the Note Purchaser and the
Administrative Agent shall be entitled, in addition to any other rights or
remedies provided hereunder, thereunder or otherwise by law or in equity, to
injunctive relief, any application for which neither the Seller nor the Issuer
shall oppose.

                     [Remainder of Page Intentionally Blank]

                                      -31-
<PAGE>

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

                                 FOLIO FUNDING II, LLC

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

                                 Address:     16355 Laguna Canyon Road
                                              Irvine, California  92618

                                 Attention:  General Counsel
                                 Telephone:  (949) 785-6691
                                 Email address: mcreatura@consumerportfolio.com

                                 CONSUMER PORTFOLIO SERVICES, INC.

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

                                 Address:     16355 Laguna Canyon Road
                                              Irvine, California  92618

                                 Attention:     General Counsel
                                 Telephone:     (949) 785-6691
                                 Email address: mcreatura@consumerportfolio.com

                                      -32-
<PAGE>

                                 CITIGROUP FINANCIAL PRODUCTS INC.,
                                 AS NOTE PURCHASER AND ADMINISTRATIVE AGENT

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

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

                                 Citigroup Financial Products Inc.
                                 390 Greenwich Street
                                 New York New York 10013
                                 Attention:  Ari Rosenberg, Managing Director
                                 email: ari.rosenberg@citi.com
                                 Telephone No.: 212-723-1041

                                 Attention:  Marc Daly, Vice President
                                 email:
                                 Telephone No.: 212-723-4571

                                 with a copy to:
                                 Citigroup Global Securitized Products
                                 450 Mamaroneck Avenue
                                 Harrison, NY 10528
                                 Attention: Robert Kohl, Senior Vice President
                                 email:
                                 Telephone No.: 914-899-7142
                                 Attention: John Koterbay, Vice President
                                 email:
                                 Telephone No.: 914-899-7155

                                      -33-
<PAGE>

                                     ANNEX A

                           TO NOTE PURCHASE AGREEMENT

                                  DEFINED TERMS
                                  -------------

                  "ABS ISSUANCE AGREEMENTS" means, for any Pledged Residual
Interest Certificates, the agreements pursuant to which such Pledged Residual
Interest Certificates have been issued, including without limitation any
agreements relating to the payment or distribution of amounts to the holder of
such Pledged Residual Interest Certificates.

                  "ACT" has the meaning specified in SECTION 11.3 of the
Indenture.

                  "ADMINISTRATIVE AGENT" means Citigroup Financial Products Inc.
or any successor thereto under the Basic Documents.

                  "ADMINISTRATIVE AGENT FEE" has the meaning specified in
SECTION 3.02(a), of the Note Purchase Agreement.

                  "AFFILIATE" of any Person means any Person who directly or
indirectly controls, is controlled by, or is under direct or indirect common
control with such Person. For purposes of this definition, the term "CONTROL"
when used with respect to any Person means 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 the terms
"CONTROLLING", "CONTROLLED BY" and "UNDER COMMON CONTROL WITH" have meanings
correlative to the foregoing. In addition, for purposes of this definition, any
fund or investment vehicle, whether existing as of the Initial Closing Date or
thereafter formed, which is managed by any Person, shall be deemed to by an
"AFFILIATE" of such Person. Furthermore, for purposes of this definition, none
of (i) Levine Leichtman Capital Partners, IV, (ii) Citigroup Financial Products,
Inc. or (iii) Charles E. Bradley, Jr. shall be deemed to be an "AFFILIATE" of
CPS or any of its Subsidiaries.

                  "AGGREGATE INVESTED AMOUNT" means, as of any date of
determination, the sum of the Class A-1 Invested Amount and the Class A-2
Invested Amount.

                  "ASSIGNMENT" means an assignment from the Seller to the
Purchaser with respect to the Residual Interest Assets conveyed by the Seller to
the Purchaser on a Transfer Date, in substantially the form of EXHIBIT B to the
Sale and Contribution Agreement.

                  "AUTHORIZED OFFICER" means the Chief Executive Officer, the
Chief Financial Officer or the Chief Investment Officer of the Seller, the
Purchaser or the Issuer, as applicable.

                  "AVAILABLE FUNDS" means, for each Settlement Date, the sum of
the following amounts with respect to the related Interest Period, without
duplication: (i) all amounts paid or received in respect of the Collateral and
deposited into the Collection Account; (ii) all income from Eligible Investments
or other amounts held in the Collection Account; (iii) all other proceeds of the
Collateral to the extent received by the Issuer, CPS or the Trustee.

                  "BANKRUPTCY CODE" means the Bankruptcy Reform Act of 1978, as
amended from time to time, and as codified as 11 U.S.C. Section 101 ET SEQ.

                  "BASIC DOCUMENTS" means the Note Purchase Agreement (including
this Annex A), the Notes, the Indenture, the Sale and Contribution Agreement,
the LLC Agreement, each Assignment, the Guaranty, the Warrants and any other
documents and certificates delivered in connection therewith, as any of the
foregoing may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof.

                                      A-1
<PAGE>

                  "BUSINESS DAY" means any (i) day other than a Saturday, a
Sunday or other day on which commercial banks located in the states of
Minnesota, California or New York are authorized or obligated to be closed and
(ii) if the applicable Business Day relates to the determination of LIBOR, a day
which is a day described in clause (i) above which is also a day for trading by
and between banks in the London interbank eurodollar market.

                  "CHANGE OF CONTROL" means a change resulting when (i) the
Seller no longer owns 100% of the membership interests in the Purchaser, (ii)
the Seller or the Purchaser merges or consolidates with, or sells all or
substantially all of its assets to any other Person, or (iii) any Unrelated
Person or any Unrelated Persons, acting together, that would constitute a Group
together with any Affiliates or Related Persons thereof (in each case also
constituting Unrelated Persons) shall at any time Beneficially Own more than 50%
of the aggregate voting power of all classes of Voting Stock of the Seller. As
used herein, (a) "Beneficially Own" shall mean "beneficially own" as defined in
Rule 13d-3 of the Exchange Act, or any successor provision thereto; provided,
however, that, for purposes of this definition, a Person shall not be deemed to
Beneficially Own securities tendered pursuant to a tender or exchange offer made
by or on behalf of such Person or any of such Person's Affiliates until such
tendered securities are accepted for purchase or exchange; (b) "Group" shall
mean a "group" for purposes of Section 13(d) of the Exchange Act; (c) "Unrelated
Person" shall mean at any time any Person other than the Seller or any of its
Subsidiaries and other than any trust for any employee benefit plan of the
Seller or any of its Subsidiaries; (d) "Related Person" shall mean any other
Person owning (1) 5% or more of the outstanding common stock of such Person, or
(2) 5% or more of the Voting Stock of such Person; and (e) "Voting Stock" of any
Person shall mean the capital stock or other indicia of equity rights of such
Person which at the time has the power to vote for the election of one or more
members of the Board of Directors (or other governing body) of such Person.

                  "CLASS A PRINCIPAL COVERAGE RATIO" means as of any
Determination Date, the ratio obtained by dividing (a) Available Funds with
respect to the related Settlement Date less all amounts payable pursuant to
clauses (i) through (iv) pursuant to Section 8.5 of the Indenture on the related
Settlement Date by (b) the Required Noteholders' Principal Distributable Amount
with respect to the related Settlement Date.

                  "CLASS A-1 APPLICABLE MARGIN" means 10.875%.

                  "CLASS A-1 AGGREGATE INVESTED AMOUNT" means the sum of the
Class A-1 Individual Invested Amounts.

                  "CLASS A-1 DEFAULT APPLICABLE MARGIN" means the sum of (i) the
Class A-1 Applicable Margin and (ii) 2.00%.

                  "CLASS A-1 FACILITY AMOUNT" means $10,000,000.

                  "CLASS A-1 FACILITY TERMINATION DATE" means the first to occur
of (A) the Class A-1 Scheduled Maturity Date or (B) an Event of Default.

                  "CLASS A-1 FUNDING DATE" means prior to the Effective Date,
each Business Day on which an advance under the Initial Class A-1 Notes
occurred.

                  "CLASS A-1 HOLDERS" or "CLASS A-1 NOTEHOLDERS" means the
Persons in whose name the Class A-1 Notes are registered on the Note Register,
which on the Effective Date shall initially be Citigroup Financial Products Inc.
or an Affiliate thereof.

                  "CLASS A-1 INDIVIDUAL INVESTED AMOUNT" means, with respect to
a Class A-1 Noteholder, such Class A-1 Noteholder's portion of the Class A-1
Invested Amount, as determined by the Administrative Agent.

                  "CLASS A-1 INVESTED AMOUNT" means, with respect to any date of
determination, the aggregate outstanding principal amount of the Class A-1 Notes
at such date of determination.

                  "CLASS A-1 MAJORITY NOTEHOLDERS" means Holders of Class A-1
Notes that in the aggregate evidence more than 50% of the Class A-1 Aggregate
Invested Amount.

                                      A-2
<PAGE>

                  "CLASS A-1 NOTES" has the meaning set forth in the preamble to
the Indenture.

                  "CLASS A-1 NOTE INTEREST RATE" means for any day during any
Interest Period the sum of (i) LIBOR for such day and (ii) the Class A-1
Applicable Margin (or if an Event of Default shall have occurred and be
continuing, the Class A-1 Default Applicable Margin) for such day; PROVIDED,
HOWEVER, that the Class A-1 Note Interest Rate will in no event be higher than
the maximum rate permitted by law.

                  "CLASS A-1 NOTEHOLDERS' INTEREST CARRYOVER SHORTFALL" means,
with respect to any Settlement Date, the excess of the Class A-1 Noteholders'
Interest Distributable Amount for the preceding Settlement Date over the amount
that was actually deposited in the Note Distribution Account on such preceding
Settlement Date on account of the Class A-1 Noteholders' Interest Distributable
Amount.

                  "CLASS A-1 NOTEHOLDERS' INTEREST DISTRIBUTABLE AMOUNT" means,
with respect to any Settlement Date, the sum of the Class A-1 Noteholders'
Monthly Interest Distributable Amount for such Settlement Date and the Class A-1
Noteholders' Interest Carryover Shortfall for such Settlement Date, if any, plus
interest on the Class A-1 Noteholders' Interest Carryover Shortfall, to the
extent permitted by law, at the Class A-1 Note Interest Rate for the related
Interest Period(s), from and including the preceding Settlement Date to, but
excluding, the current Settlement Date.

                  "CLASS A-1 NOTEHOLDERS' MONTHLY INTEREST DISTRIBUTABLE AMOUNT"
means, with respect to any Settlement Date, the sum of the interest amounts
accrued on the Class A-1 Notes on each day during the related Interest Period.
The interest amount accrued on the Class A-1 Notes on any day during any
Interest Period shall equal the product of (i) the Class A-1 Note Interest Rate
for such day and (ii) the Class A-1 Invested Amount on such day and (iii) 1/360.

                  "CLASS A-1 NOTEHOLDERS' PRINCIPAL DISTRIBUTABLE AMOUNT" means
(A) with respect to any Settlement Date (other than any Settlement Date
described in clauses (B) and (C) below) prior to the Class A-1 Facility
Termination Date, the Required Noteholders' Principal Distributable Amount with
respect to such Settlement Date or if such Required Noteholders' Principal
Distributable Amount exceeds the Class A-1 Invested Amount on such Settlement
Date, the portion of such Required Noteholders' Principal Distributable Amount
required to reduce the Class A-1 Invested Amount to zero, (B) upon the
occurrence of a Principal Coverage Ratio Violation with respect to the
Determination Date related to any Settlement Date, for such Settlement Date
only, all remaining Available Funds after making the distributions required by
Section 8.5(i) through (iv) of the Indenture up to the Class A-1 Invested Amount
as of such Settlement Date, (C) upon and subsequent to the occurrence of an
Event of Default, with respect to each Settlement Date, the Class A-1 Invested
Amount as of such Settlement Date and (D) on the Class A-1 Facility Termination
Date, the Class A-1 Invested Amount on such Class A-1 Facility Termination Date.

                  "CLASS A-1 SCHEDULED MATURITY DATE" means June 15, 2009 or if
the Class A-1 Term is extended pursuant to SECTION 2.02 of the Note Purchase
Agreement, June 15, 2010.

                  "CLASS A-1 TERM" has the meaning given to such term in SECTION
2.02 of the Note Purchase Agreement.

                  "CLASS A-2 APPLICABLE MARGIN" means 10.875%.

                  "CLASS A-2 AGGREGATE INVESTED AMOUNT" means the sum of the
Class A-2 Individual Invested Amounts.

                  "CLASS A-2 DEFAULT APPLICABLE MARGIN" means the sum of (i) the
Class A-2 Applicable Margin and (ii) 2.00%.

                  "CLASS A-2 INDIVIDUAL INVESTED AMOUNT" means, with respect to
a Class A-2 Noteholder, such Class A-2 Noteholder's portion of the Class A-2
Invested Amount, as determined by the Administrative Agent.

                                      A-3
<PAGE>

                  "CLASS A-2 FACILITY AMOUNT" means $60,000,000.

                  "CLASS A-2 FACILITY TERMINATION DATE" means the earlier of (a)
the Class A-2 Scheduled Maturity Date, or (b) the date of the occurrence of an
Event of Default.

                  "CLASS A-2 HOLDERS" or "CLASS A-2 NOTEHOLDERS" means the
Person in whose name the Class A-2 Notes are registered on the Note Register,
which on the Effective Date shall initially be Citigroup Financial Products Inc.
or an Affiliate thereof.

                  "CLASS A-2 INVESTED AMOUNT" means, with respect to any date of
determination, the aggregate outstanding principal amount of the Class A-2 Notes
at such date of determination.

                  "CLASS A-2 MAJORITY NOTEHOLDERS" means Holders of Class A-2
Notes that in the aggregate evidence more than 50% of the Class A-2 Aggregate
Invested Amount.

                  "CLASS A-2 NOTES" has the meaning set forth in the preamble to
the Indenture.

                  "CLASS A-2 NOTE INTEREST RATE" means for any day during any
Interest Period the sum of (i) LIBOR for such day and (ii) the Class A-2
Applicable Margin (or if an Event of Default shall have occurred and be
continuing, the Class A-2 Default Applicable Margin) for such day; PROVIDED,
HOWEVER, that the Class A-2 Note Interest Rate will in no event be higher than
the maximum rate permitted by law.

                  "CLASS A-2 NOTEHOLDERS' INTEREST CARRYOVER SHORTFALL" means,
with respect to any Settlement Date, the excess of the Class A-2 Noteholders'
Interest Distributable Amount for the preceding Settlement Date over the amount
that was actually deposited in the Note Distribution Account on such preceding
Settlement Date on account of the Class A-2 Noteholders' Interest Distributable
Amount.

                  "CLASS A-2 NOTEHOLDERS' INTEREST DISTRIBUTABLE AMOUNT" means,
with respect to any Settlement Date, the sum of the Class A-2 Noteholders'
Monthly Interest Distributable Amount for such Settlement Date and the Class A-2
Noteholders' Interest Carryover Shortfall for such Settlement Date, if any, plus
interest on the Class A-2 Noteholders' Interest Carryover Shortfall, to the
extent permitted by law, at the Class A-2 Note Interest Rate for the related
Interest Period(s), from and including the preceding Settlement Date to, but
excluding, the current Settlement Date.

                  "CLASS A-2 NOTEHOLDERS' MONTHLY INTEREST DISTRIBUTABLE AMOUNT"
means, with respect to any Settlement Date, the sum of the interest amounts
accrued on the Class A-2 Notes on each day during the related Interest Period.
The interest amount accrued on the Class A-2 Notes on any day during any
Interest Period shall equal the product of (i) the Class A-2 Note Interest Rate
for such day and (ii) the Class A-2 Invested Amount on such day and (iii) 1/360.

                  "CLASS A-2 NOTEHOLDERS' PRINCIPAL DISTRIBUTABLE AMOUNT" means
(A) with respect to any Settlement Date (other than any Settlement Date
described in clauses (D), (E) and (F) below) prior to which the Class A-1 Notes
have been paid in full, zero, (B) with respect to any Settlement Date (other
than any Settlement Date described in clauses (D), (E) and (F) below) on which a
portion of the Required Noteholders' Principal Distributable Amount with respect
to such Settlement Date has been applied in an amount sufficient to reduce the
Class A-1 Notes to zero, any remaining Required Noteholders' Principal
Distributable Amount, (C) with respect to any Settlement Date after the Class
A-1 Notes have been paid in full (other than any Settlement Date described in
clauses (D), (E) and (F) below) and prior to the Class A-2 Facility Termination
Date, the Required Noteholders' Principal Distributable Amount with respect to
such Settlement Date, (D) upon the occurrence of a Principal Coverage Ratio
Violation with respect to the Determination Date related to any Settlement Date,
for such Settlement Date only, all remaining Available Funds after making the
distributions required by Section 8.5(i) through (v) of the Indenture up to the
Class A-2 Invested Amount as of such Settlement Date, (E) upon and subsequent to
the occurrence of an Event of Default, with respect to each Settlement Date, the
Class A-2 Invested Amount as of such Settlement Date and (F) on the Class A-2
Facility Termination Date, the Class A-2 Invested Amount on such Class A-2
Facility Termination Date.

                                      A-4
<PAGE>

                  "CLASS A-2 SCHEDULED MATURITY DATE" means June 15, 2009 or if
the Class A-2 Term is extended pursuant to SECTION 2.02 of the Note Purchase
Agreement, June 15, 2010.

                  "CLASS A-2 TERM" has the meaning given to such term in SECTION
2.02 of the Note Purchase Agreement.

                  "CODE" means the Internal Revenue Code of 1986, as amended
from time to time, and Treasury Regulations promulgated thereunder.

                  "COLLATERAL" has the meaning specified in the Granting Clause
of the Indenture.

                  "COLLATERAL DEFICIENCY" means as of any Valuation Date, the
positive excess, if any, of the Aggregate Invested Amount of the Notes as of
such date of determination over the aggregate market value, as determined by the
Administrative Agent in its sole reasonable discretion, of the Pledged Residual
Interest Certificates issued pursuant to the Eligible Committed Securitizations
as of such date of determination.

                  "COLLECTION ACCOUNT" means the account designated as such,
established and maintained pursuant to SECTION 8.2 of the Indenture.

                  "COLLECTION ACCOUNT PROPERTY" means all amounts and
investments held from time to time in the Collection Account (whether in the
form of deposit accounts, Physical Property, book-entry securities,
uncertificated securities or otherwise), and all proceeds of the foregoing.

                  "COMMISSION" means the United States Securities and Exchange
Commission.

                  "COMPLIANCE CERTIFICATE" means an Officer's Certificate of
each of CPS and the Issuer certifying that there has not been a breach of any
representation, warranty or covenant of CPS or the Issuer set forth in any of
the Basic Documents.

                  "CONFIRMATION STATEMENT" means, with respect to any transfer
of Residual Interest Certificates to the Purchaser pursuant to SECTION 2.1 of
the Sale and Contribution Agreement, notice of the Seller's election to transfer
Residual Interest Certificates to the Purchaser, such notice to designate the
related Transfer Date and the Transfer Value of the Residual Interest
Certificates to be transferred by the Seller to the Purchaser on such Transfer
Date.

                  "CONSOLIDATED TOTAL ADJUSTED EQUITY" of any Person means, with
respect to any fiscal quarter, the total shareholders' equity of such Person and
its consolidated Subsidiaries that, in accordance with GAAP, is reflected on the
consolidated balance sheet of such Person and its consolidated Subsidiaries for
such fiscal quarter, MINUS the aggregate amount of such Person's and its
consolidated Subsidiaries intangible assets, including without limitation,
goodwill, franchises, licenses, patents, trademarks, tradenames, copyrights and
service marks.

                  "CONSUMER LAWS" means federal and State interest and usury
laws, the federal Truth-in-Lending Act and its implementing Federal Reserve
Board Regulation Z, the federal Equal Credit Opportunity Act and its
implementing Federal Reserve Board Regulation B, the federal Fair Credit
Reporting Act, the federal Fair Debt Collection Practices Act, the Federal Trade
Commission Act and all applicable Federal Trade Commission Trade Regulation
Rules, the Magnuson-Moss Warranty Act, the Servicemembers Civil Relief Act, the
California Military Reservist Relief Act and any other federal, state or local
law relating to credit extensions to servicemembers, the Texas Consumer Credit
Code, the California Automobile Sales Finance Act and the laws of any other
state relating to retail installment sales of motor vehicles and ancillary
products and/or services, State adaptations of the National Consumer Act and of
the Uniform Consumer Credit Code, all other federal, State and local consumer
credit laws and other consumer protection laws relating to the conduct of the
business of CPS, laws requiring the licensing of sale finance companies and/or
lenders, the Uniform Commercial Code as it relates to secured retail installment
sales and secured loans, state and local laws proscribing unlawful, unfair
and/or deceptive acts and practices, federal, state and local laws relating to
privacy and/or data security, and any rules, regulations and/or interpretations
of the foregoing laws.

                                      A-5
<PAGE>

                  "CORPORATE TRUST OFFICE" means with respect to the Trustee,
the principal office of the Trustee at which at any particular time its
corporate trust business shall be administered which office is located at Sixth
Street and Marquette Avenue, MAC N9311-161, Minneapolis, Minnesota 55479, email:
CTSABSSERVICER@WELLSFARGO.COM or at such other address as the Trustee may
designate from time to time by notice to the Note Purchaser, the Seller, the
Issuer, or the principal corporate trust office of any successor Trustee (the
address of which the successor Trustee will notify the Note Purchaser).

                  "CPS" means Consumer Portfolio Services, Inc., a California
corporation.

                  "DEFAULT" means any occurrence that is, or with notice or the
lapse of time or both would become, an Event of Default.

                  "DEFAULT APPLICABLE MARGIN" means the Class A-1 Default
Applicable Margin or the Class A-2 Default Applicable Margin, as applicable.

                  "DELIVERY" means, when used with respect to Collection Account
Property:

                  (i) the perfection and priority of a security interest in such
Collection Account Property which is governed by the law of a jurisdiction which
has adopted the 1978 Revision to Article 8 of the UCC (and not the 1994 Revision
to Article 8 of the UCC as referred to in (II) below):

                           (a) with respect to bankers' acceptances, commercial
         paper, negotiable certificates of deposit and other obligations that
         constitute "INSTRUMENTS" within the meaning of Section 9-102(a)(47) of
         the UCC and are susceptible of physical delivery, transfer thereof to
         the Trustee or its nominee or custodian by physical delivery to the
         Trustee or its nominee or custodian endorsed to, or registered in the
         name of, the Trustee or its nominee or custodian or endorsed in blank,
         and, with respect to a certificated security (as defined in Section
         8-102 of the UCC), transfer thereof (1) by delivery of such
         certificated security endorsed to, or registered in the name of, the
         Trustee or its nominee or custodian or endorsed in blank to a financial
         intermediary (as defined in Section 8-313 of the UCC) and the making by
         such financial intermediary of entries on its books and records
         identifying such certificated securities as belonging to the Trustee or
         its nominee or custodian and the sending by such financial intermediary
         of a confirmation of the purchase of such certificated security by the
         Trustee or its nominee or custodian, or (2) by delivery thereof to a
         "CLEARING CORPORATION" (as defined in Section 8-102(3) of the UCC) and
         the making by such clearing corporation of appropriate entries on its
         books reducing the appropriate securities account of the transferor and
         increasing the appropriate securities account of a financial
         intermediary by the amount of such certificated security, the
         identification by the clearing corporation of the certificated
         securities for the sole and exclusive account of the financial
         intermediary, the maintenance of such certificated securities by such
         clearing corporation or a "CUSTODIAN BANK" (as defined in Section
         8-102(4) of the UCC) or the nominee of either subject to the clearing
         corporation's exclusive control, the sending of a confirmation by the
         financial intermediary of the purchase by the Trustee or its nominee or
         custodian of such securities and the making by such financial
         intermediary of entries on its books and records identifying such
         certificated securities as belonging to the Trustee or its nominee or
         custodian (all of the foregoing, "PHYSICAL Property"), and, in any
         event, any such Physical Property in registered form shall be in the
         name of the Trustee or its nominee or custodian; and such additional or
         alternative procedures as may hereafter become appropriate to effect
         the complete transfer of ownership of any such Collection Account
         Property to the Trustee or its nominee or custodian, consistent with
         changes in applicable law or regulations or the interpretation thereof;

                           (b) with respect to any security issued by the U.S.
         Treasury, the Federal Home Loan Mortgage Corporation or by the Federal
         National Mortgage Association that is a book-entry security held
         through the Federal Reserve System pursuant to Federal book-entry
         regulations, the following procedures, all in accordance with
         applicable law, including applicable Federal regulations and Articles 8
         and 9 of the UCC: book-entry registration of such Collection Account
         Property to an appropriate book-entry account maintained with a Federal
         Reserve Bank by a financial intermediary which is also a "DEPOSITORY"
         pursuant to applicable Federal regulations and issuance by such
         financial intermediary of a deposit advice or other written

                                      A-6
<PAGE>

         confirmation of such book-entry registration to the Trustee or its
         nominee or custodian of the purchase by the Trustee or its nominee or
         custodian of such book-entry securities; the making by such financial
         intermediary of entries in its books and records identifying such
         book-entry security held through the Federal Reserve System pursuant to
         Federal book-entry regulations as belonging to the Trustee or its
         nominee or custodian and indicating that such custodian holds such
         Collection Account Property solely as agent for the Trustee or its
         nominee or custodian; and such additional or alternative procedures as
         may hereafter become appropriate to effect complete transfer of
         ownership of any such Collection Account Property to the Trustee or its
         nominee or custodian, consistent with changes in applicable law or
         regulations or the interpretation thereof; and

                           (c) with respect to any item of Collection Account
         Property that is an uncertificated security under Article 8 of the UCC
         and that is not governed by CLAUSE (B) above, registration on the books
         and records of the issuer thereof in the name of the financial
         intermediary, the sending of a confirmation by the financial
         intermediary of the purchase by the Trustee or its nominee or custodian
         of such uncertificated security, the making by such financial
         intermediary of entries on its books and records identifying such
         uncertificated securities as belonging to the Trustee or its nominee or
         custodian; or

                  (ii) the perfection and priority of a security interest in
such Collection Account Property which is governed by the law of a jurisdiction
which has adopted the 1994 Revision to Article 8 of the UCC:

                           (a) with respect to bankers' acceptances, commercial
         paper, negotiable certificates of deposit and other obligations that
         constitute "INSTRUMENTS" within the meaning of Section 9-102(a)(47) of
         the UCC (other than certificated securities) and are susceptible of
         physical delivery, transfer thereof to the Trustee by physical delivery
         to the Trustee, indorsed to, or registered in the name of, the Trustee
         or its nominee or indorsed in blank and such additional or alternative
         procedures as may hereafter become appropriate to effect the complete
         transfer of ownership of any such Collection Account Property to the
         Trustee free and clear of any adverse claims, consistent with changes
         in applicable law or regulations or the interpretation thereof;

                           (b) with respect to a "CERTIFICATED SECURITY" (as
         defined in Section 8-102(a)(4) of the UCC), transfer thereof:

                                    (1) by physical delivery of such
                  certificated security to the Trustee, PROVIDED that if the
                  certificated security is in registered form, it shall be
                  indorsed to, or registered in the name of, the Trustee or
                  indorsed in blank;

                                    (2) by physical delivery of such
                  certificated security in registered form to a "SECURITIES
                  intermediary" (as defined in Section 8-102(a)(l4) of the UCC)
                  acting on behalf of the Trustee if the certificated security
                  has been specially indorsed to the Trustee by an effective
                  indorsement.

                           (c) with respect to any security issued by the U.S.
         Treasury, the Federal Home Loan Mortgage Corporation or by the Federal
         National Mortgage Association that is a book-entry security held
         through the Federal Reserve System pursuant to Federal book entry
         regulations, the following procedures, all in accordance with
         applicable law, including applicable federal regulations and Articles 8
         and 9 of the UCC: book-entry registration of such property to an
         appropriate book-entry account maintained with a Federal Reserve Bank
         by a securities intermediary which is also a "DEPOSITARY" pursuant to
         applicable federal regulations and issuance by such securities
         intermediary of a deposit advice or other written confirmation of such
         book-entry registration to the Trustee of the purchase by the
         securities intermediary on behalf of the Trustee of such book-entry
         security; the making by such securities intermediary of entries in its
         books and records identifying such book-entry security held through the
         Federal Reserve System pursuant to Federal book-entry regulations as
         belonging to the Trustee and indicating that such securities
         intermediary holds such book-entry security solely as agent for the
         Trustee; and such additional or alternative procedures as may hereafter
         become appropriate to effect complete transfer of ownership of any such
         Collection Account Property to the Trustee free of any adverse claims,
         consistent with changes in applicable law or regulations or the
         interpretation thereof;

                                      A-7
<PAGE>

                           (d) with respect to any item of Collection Account
         Property that is an "UNCERTIFICATED SECURITY" (as defined in Section
         8-102(a)(18) of the UCC) and that is not governed by CLAUSE (C) above,
         transfer thereof:

                                    (1) (A) by registration to the Trustee as
                  the registered owner thereof, on the books and records of the
                  issuer thereof;

                                    (B) by another Person (not a securities
                  intermediary) who either becomes the registered owner of the
                  uncertificated security on behalf of the Trustee, or having
                  become the registered owner acknowledges that it holds for the
                  Trustee;

                                    (2) the issuer thereof has agreed that it
                  will comply with instructions originated by the Trustee
                  without further consent of the registered owner thereof;

                           (e) with respect to a "SECURITY ENTITLEMENT" (as
         defined in Section 8-102(a)(17) of the UCC):

                                    (1) if a securities intermediary (A)
                  indicates by book entry that a "FINANCIAL ASSET" (as defined
                  in Section 8-102(a)(9) of the UCC) has been credited to the
                  Trustee's "SECURITIES ACCOUNT" (as defined in Section 8-501(a)
                  of the UCC), (B) receives a financial asset (as so defined)
                  from the Trustee or acquires a financial asset for the
                  Trustee, and in either case, accepts it for credit to the
                  Trustee's securities account (as so defined), (C) becomes
                  obligated under other law, regulation or rule to credit a
                  financial asset to the Trustee's securities account, or (D)
                  has agreed that it will comply with "ENTITLEMENT ORDERS" (as
                  defined in Section 8-102(a)(8) of the UCC) originated by the
                  Trustee, without further consent by the "ENTITLEMENT HOLDER"
                  (as defined in Section 8-l02(a)(7) of the UCC), of a
                  confirmation of the purchase and the making by such securities
                  intermediary of entries on its books and records identifying
                  as belonging to the Trustee of (I) a specific certificated
                  security in the securities intermediary's possession, (II) a
                  quantity of securities that constitute or are part of a
                  fungible bulk of certificated securities in the securities
                  intermediary's possession, or (III) a quantity of securities
                  that constitute or are part of a fungible bulk of securities
                  shown on the account of the securities intermediary on the
                  books of another securities intermediary;

                           (f) in each case of delivery contemplated pursuant to
         CLAUSES (A) through (E) of SUBSECTION (ii) hereof, the Trustee shall
         make appropriate notations on its records, and shall cause the same to
         be made on the records of its nominees, indicating that such Trust
         Property which constitutes a security is held in trust pursuant to and
         as provided in the Sale and Contribution Agreement.

                  "DETERMINATION DATE" means, with respect to any Settlement
Date, the third Business Day preceding such Settlement Date.

                  "DOLLAR" means lawful money of the United States.

                  "EFFECTIVE DATE" means July 10, 2008.

                  "ELIGIBLE ACCOUNT" means either (i) a segregated trust account
that is maintained with a depository institution acceptable to the Note
Purchaser, or (ii) a segregated direct deposit account maintained with a
depository institution or trust company organized under the laws of the United
States of America, or any of the States thereof, or the District of Columbia,
having a certificate of deposit, short-term deposit or commercial paper rating
of at least "A-1+" by Standard & Poor's and "P-1" by Moody's and acceptable to
the Administrative Agent.

                  "ELIGIBLE COMMITTED SECURITIZATION" means an outstanding
Securitization Transaction that is not subject to a "Default" with respect to a
material breach or an "Event of Default" as such terms are defined under the
related Securitization Transaction Documents.

                                      A-8
<PAGE>

                  "ELIGIBLE INVESTMENTS" mean book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered
form which evidence:

                           (a) direct obligations of, and obligations fully
         guaranteed as to the full and timely payment by, the United States of
         America;

                           (b) demand deposits, time deposits or certificates of
         deposit of any depository institution or trust company incorporated
         under the laws of the United States of America or any State thereof (or
         any domestic branch of a foreign bank) and subject to supervision and
         examination by Federal or State banking or depository institution
         authorities; PROVIDED, HOWEVER, that at the time of the investment or
         contractual commitment to invest therein, the commercial paper or other
         short-term unsecured debt obligations (other than such obligations the
         rating of which is based on the credit of a Person other than such
         depository institution or trust company) thereof shall be rated "A-1+"
         or better by Standard & Poor's and "P-1" by Moody's;

                           (c) commercial paper that, at the time of the
         investment or contractual commitment to invest therein, is rated "A-1+"
         or better by Standard & Poor's and "P-1" by Moody's;

                           (d) bankers' acceptances issued by any depository
         institution or trust company referred to in CLAUSE (b) above;

                           (e) repurchase obligations with respect to any
         security that is a direct obligation of, or fully guaranteed as to the
         full and timely payment by, the United States of America or any agency
         or instrumentality thereof the obligations of which are backed by the
         full faith and credit of the United States of America, in either case
         entered into with (i) a depository institution or trust company (acting
         as principal) described in CLAUSE (b) or (ii) a depository institution
         or trust company whose commercial paper or other short term unsecured
         debt obligations are rated "A-1+" or better by Standard & Poor's and
         "P-1" by Moody's and long term unsecured debt obligations are rated
         "AAA" by Standard & Poor's and "AAA" by Moody's;

                           (f) with the prior written consent of the Note
         Purchaser, money market mutual funds registered under the Investment
         Company Act of 1940, as amended, having a rating, at the time of such
         investment, from each of Standard & Poor's and Moody's in the highest
         investment category granted thereby; and

                           (g) any other investment as may be acceptable to the
         Note Purchaser, as evidenced by a writing to that effect, as may from
         time to time be confirmed in writing to the Trustee by the
         Administrative Agent.

                  Any of the foregoing Eligible Investments may be purchased by
or through the Trustee or any of its Affiliates.

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

                  "EVENT OF DEFAULT" has the meaning specified in SECTION 5.1 of
the Indenture.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                  "EXCLUDED SUBSIDIARY" shall mean each of (i) CPS Leasing,
Inc., (ii) CPS Marketing, Inc., (iii) TFC Enterprises, LLC, (iv) Mercury Finance
Company, LLC, (v) each Subsidiary of Mercury Finance Company, LLC, (vi) Page
Funding, LLC and (vii) Page Three Funding, LLC.

                  "EXTENSION NOTICE" has the meaning specified in SECTION 2.02
of the Note Purchase Agreement.

                                      A-9
<PAGE>

                  "EXECUTIVE OFFICER" means, with respect to any corporation,
the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
President, Senior Vice President, any Vice President, the Secretary or the
Treasurer of such corporation; with respect to any limited liability company,
the manager and any individuals appointed to any of the preceding offices by the
manager; and with respect to any partnership, any general partner thereof.

                  "EXTENSION BREACH" means, as of any date of determination, one
or more of the following: (i) there has been more than one prior occurrence
(whether or not then continuing) of an Event of Default; (ii) there has been
more than two prior occurrences (whether or not then continuing) of a Principal
Coverage Ratio Violation; (iii) an Event of Default or a Principal Coverage
Ratio Violation (whether or not then continuing) has occurred during the 60 days
prior to the date of delivery of the Extension Notice; or (iv) as of the
Originally Scheduled Facility Termination Date, a Default or an Event of Default
shall have occurred and is continuing.

                  "FACILITY" means the transactions contemplated by the Basic
Documents.

                  "FACILITY TERMINATION DATE" means, with respect to the Class
A-1 Notes, the Class A-1 Facility Termination Date and with respect to the Class
A-2 Notes, the Class A-2 Facility Termination Date.

                  "FDIC" means the Federal Deposit Insurance Corporation.

                  "FEE SCHEDULE" means that certain notice captioned "Schedule
of Fees for CPS - Citigroup Residual Warehouse" from Wells Fargo Bank, National
Association, as acknowledged by CPS as of July 11, 2007.

                  "FUNDING DATE" means, with respect to the Class A-1 Notes, a
Class A-1 Funding Date and with respect to the Class A-2 Notes, the Initial
Funding Date.

                  "FUNDING TRUST" means CPS Receivables Funding Trust, a
Delaware statutory trust.

                  "FUNDING TRUST CERTIFICATE" means a certificate issued by
Funding Trust that evidences a 100% fractional undivided ownership interest in
one or more instruments or certificates, each of which evidences not less than
99.00% of the residual interest in a Trust and represents the right to receive
amounts to be distributed or paid to the holders of the residual interests
pursuant to the related Securitization Transaction Documents.

                  "GAAP" means U.S. generally accepted accounting principles
occasioned by the promulgation of rules, regulations, pronouncements or opinions
by the Financial Accounting Standards Board, the American Institute of Certified
Public Accountants or the Securities and Exchange Commission (or successors
thereto or agencies with similar functions) from time to time.

                  "GOVERNMENTAL AUTHORITY" means the United States of America,
any nation, government, state, local or other political subdivision thereof or
any court, entity or agency exercising executive, legislative, judicial,
regulatory, or administrative functions thereof pertaining thereto.

                  "GRANT" means to mortgage, pledge, bargain, sell, warrant,
alienate, remise, release, convey, assign, transfer, create, grant a lien upon
and a security interest in and right of set-off against, deposit, set over and
confirm pursuant to the Indenture. A Grant of the Collateral or of any other
agreement or instrument shall include all rights, powers and options (but none
of the obligations) of the granting party thereunder, including, as and to the
extent provided in the Basic Documents, the immediate and continuing right
(after an Event of Default) to claim for, collect, receive and give receipt for
principal and interest payments in respect of the Collateral and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of the granting party or otherwise and generally
to do and receive anything that the granting party is or may be entitled to do
or receive thereunder or with respect thereto.

                  "GUARANTOR" means Consumer Portfolio Services, Inc., a
California corporation.

                                      A-10
<PAGE>

                  "GUARANTY" means the Performance Guaranty dated as of July 10,
2008, by CPS, as the guarantor, in favor of the Noteholder, Note Purchaser, the
Administrative Agent and their successors and permitted assigns, substantially
in the form attached as EXHIBIT B to the Note Purchase Agreement, as the same
may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

                  "HOLDER" or "NOTEHOLDER" means a Class A-1 Noteholder or a
Class A-2 Noteholder, as the context may require.

                  "INDEBTEDNESS" means, with respect to any Person at any time,
any (a) indebtedness or liability of such Person for borrowed money whether or
not evidenced by bonds, debentures, notes, repurchase agreements and similar
arrangements, or other instruments, or for the deferred purchase price of
property or services (including trade obligations); (b) obligations of such
Person as lessee under leases which should be, in accordance with GAAP, recorded
as capital leases; (c) current liabilities of such Person in respect of unfunded
vested benefits under plans covered by Title IV of ERISA; (d) obligations issued
for or liabilities incurred on the account of such Person; (e) obligations or
liabilities of such Person arising under acceptance facilities; (f) obligations
of such Person under any guarantees, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person
or otherwise to assure a creditor against loss; (g) obligations of others
secured by any lien on property or assets of such Person, whether or not the
obligations have been assumed by such Person; or (h) obligations of such Person
under any interest rate or currency exchange agreement.

                  "INDENTURE" means the Amended and Restated Indenture dated as
of July 10, 2008, by and among the Issuer, the Administrative Agent and Wells
Fargo Bank, National Association, as Trustee, as the same may be further
amended, supplemented or otherwise modified from time to time in accordance with
the terms thereof.

                  "INDEPENDENT" means, when used with respect to any specified
Person, that the person (a) is in fact independent of the Issuer, any other
obligor upon the Notes, the Seller, the Purchaser and any Affiliate of any of
the foregoing persons, (b) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any other obligor on the
Notes, the Seller, the Purchaser or any Affiliate of any of the foregoing
Persons and (c) is not connected with the Issuer, any other obligor on the
Notes, the Seller, the Purchaser or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or Person performing similar functions.

                  "INITIAL CLASS A-1 NOTES" means up to $60,000,000 Class A-1
Variable Funding Notes issued by the Issuer on the Initial Funding Date.

                  "INITIAL CLASS A-2 NOTES" means the $60,000,000 Class A-2 Term
Notes issued by the Issuer on the Initial Funding Date.

                  "INITIAL CLOSING DATE" means July 11, 2007.

                  "INITIAL FUNDING DATE" means July 13, 2007.

                  "INSOLVENCY EVENT" means, with respect to a specified Person,
(a) the institution of a proceeding or the filing of a petition against such
Person seeking the entry 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 federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, seeking
the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or ordering the winding-up or liquidation of such Person's
affairs, and such proceeding or petition, decree or order shall remain unstayed
or undismissed for a period of 60 consecutive days or an order or decree for the
requested relief is earlier entered or issued; or (b) the commencement by such
Person of a voluntary case under any applicable federal or state bankruptcy,
insolvency or other similar 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 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

                                      A-11
<PAGE>

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 taking of action by such Person in furtherance
of any of the foregoing.

                  "INTEREST PERIOD" means, for any Settlement Date on which
interest is to be paid with respect to the Notes, the period from and including
the most recent prior Settlement Date (or, in the case of the first Settlement
Date, the Effective Date) to but excluding such current Settlement Date on which
interest is to be paid.

                  "INVESTED AMOUNT" means, with respect to the Class A-1 Notes,
the Class A-1 Invested Amount and with respect to the Class A-2 Notes, the Class
A-2 Invested Amount.

                  "INVESTMENT COMPANY ACT" has the meaning set forth in SECTION
5.01(i)(f) of the Note Purchase Agreement.

                  "INVESTMENT EARNINGS" means, with respect to any Settlement
Date and the Collection Account, the investment earnings on the Collection
Account Property and deposited into the Collection Account during the related
Interest Period pursuant to SECTION 8.3 of the Indenture.

                  "ISSUER" means Folio Funding II LLC until a successor replaces
it in accordance with the terms of the Indenture and, thereafter, means the
successor and, for purposes of any provision contained herein, each other
obligor on the Notes.

                  "ISSUER SECURED OBLIGATIONS" has the meaning set forth in the
Granting Clause of the Indenture.

                  "ISSUER SECURED PARTIES" has the meaning set forth in the
Granting Clause of the Indenture.

                  "ISSUER ORDER" and "ISSUER REQUEST" means a written order or
request signed in the name of the Issuer by any one of its Authorized Officers
and delivered to the Trustee.

                  "LIBOR" means the rate for one-month deposits in U.S. dollars,
which rate is determined on a daily basis by the Note Purchaser by reference to
the British Bankers' Association LIBOR Rates on Bloomberg (or such other service
or services as may be nominated by the British Bankers' Association for the
purpose of displaying London interbank offered rates for U.S. dollar deposits)
on such date (or, if such date is not a Business Day, on the immediately
preceding Business Day) at or about 11 a.m. New York City time; PROVIDED,
HOWEVER, that if no rate appears on Bloomberg on any date of determination,
LIBOR shall mean the rate for one-month deposits in U.S. Dollars which appears
on the Reuters Screen LIBOR Page (as defined in the International Swap Dealers
Association Inc. Code of Standard Wording, Assumptions and Provisions for Swaps,
1986 Edition) on any such date of determination; PROVIDED FURTHER, that if no
rate appears on either Bloomberg or such Reuters Screen LIBOR Page on any such
date of determination, LIBOR shall be determined as follows:

                  LIBOR will be determined at approximately 11:00 a.m., New York
City time, on such day on the basis of (a) the arithmetic mean of the rates at
which one-month deposits in U.S. dollars are offered to prime banks in the
London interbank market by four (4) major banks in the London interbank market
selected by the Note Purchaser and in a principal amount of not less than
$200,000,000 that is representative for a single transaction in such market at
such time, if at least two (2) such quotations are provided, or (b) if fewer
than two (2) quotations are provided as described in the preceding clause (a),
the arithmetic mean of the rates, as requested by the Note Purchaser, quoted by
three (3) major banks in New York City, selected by the Note Purchaser, at
approximately 11:00 A.M., New York City time, on such day, for one-month
deposits in United States dollars to leading European banks and in a principal
amount of not less than $200,000,000 that is representative for a single
transaction in such market at such time.

                  "LIEN" means a security interest, lien, charge, pledge,
equity, or other encumbrance of any kind.

                  "LITIGATION THRESHOLD" has the meaning set forth in SCHEDULE
II to the Note Purchase Agreement.

                                      A-12
<PAGE>

                  "LLC AGREEMENT" means the Limited Liability Company Agreement
of Folio Funding II LLC dated as of July 3, 2007, as such agreement may be
further amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

                  "MAJORITY NOTEHOLDERS" means the Class A-1 Majority
Noteholders and the Class A-2 Majority Noteholders, collectively acting as a
single class.

                  "MATERIAL ADVERSE CHANGE" means any event, matter, condition
or circumstance which (a) materially and adversely affects the business, assets,
condition (financial or otherwise), results of operations, properties (whether
real, personal or otherwise) or prospects of (i) the Guarantor, the Seller, the
Purchaser or the Issuer, in each case, individually or taken as a whole, or (ii)
CPS and its Subsidiaries, taken as a whole; (b) materially impairs the ability
of CPS or any of its Subsidiaries to perform or observe its obligations under
any Basic Document to which it is a party; (c) materially impairs the rights,
powers or remedies of the Note Purchaser or the Administrative Agent under any
of the Basic Documents; (d) materially adversely affects the legality, binding
affect, validity or enforceability of any of the Basic Documents; or (e)
materially adversely affects the validity, attachment, perfection, priority or
enforcement of any Liens granted in favor of the Trustee.

                  "MATERIAL ADVERSE EFFECT" means a material adverse effect on
(a) the Collateral; (b) the Guarantor, the Seller, the Purchaser or the Issuer,
in each case, individually or taken as a whole; (c) any of the Basic Documents
(including, without limitation, a material adverse effect on (i) the timely
payment of the principal of or the interest on the Notes or any other amounts
payable under the Basic Documents or (ii) the ability of the Guarantor, the
Seller, the Purchaser or the Issuer to perform any of its obligations under any
Basic Document to which it is a party) or (d) the interests of the
Administrative Agent, the Note Purchaser or the Noteholders under the Basic
Documents.

                  "MAXIMUM FACILITY INVESTED AMOUNT" means $70,000,000.

                  "MONTHLY SERVICER'S CERTIFICATE" has the meaning set forth in
SECTION 7.01(i) of the Note Purchase Agreement.

                  "MOODY'S" means Moody's Investors Service, Inc., or its
successor.

                  "MULTIEMPLOYER PLAN" means a Plan which is a multiemployer
plan as defined in Section 4001(a)(3) of ERISA.

                  "NOTES" means the Class A-1 Notes and/or the Class A-2 Notes,
as the context may require.

                  "NOTE INTEREST RATE" means, with respect to the Class A-1
Notes, the Class A-1 Note Interest Rate, and with respect to the Class A-2
Notes, the Class A-2 Note Interest Rate.

                  "NOTE PAYING AGENT" means the Trustee or any other Person that
meets the eligibility standards for the Trustee specified in SECTION 6.11 of the
Indenture and is authorized by the Issuer to make the payments to and
distributions from the Collection Account, including payment of principal of or
interest on each class of Notes on behalf of the Issuer.

                  "NOTE PURCHASE AGREEMENT" means the Amended and Restated Note
Purchase Agreement dated as of July 10, 2008 among the Note Purchaser, the
Administrative Agent, the Issuer, the Purchaser and the Seller, as the same may
be further amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

                  "NOTE PURCHASER" means Citigroup Financial Products Inc. and
its successors and permitted assigns.

                  "NOTE REGISTER" and "NOTE REGISTRAR" have the respective
meanings specified in SECTION 2.4 of the Indenture.

                                      A-13
<PAGE>

                  "OFFICER'S CERTIFICATE" means a certificate signed by the
Chief Executive Officer, the Chief Financial Officer or the Chief Investment
Officer of the Seller, the Purchaser or the Issuer, as applicable.

                  "OPINION OF COUNSEL" means a written opinion of counsel who
may be but need not be counsel to the Purchaser, the Seller or the Issuer, which
counsel shall be reasonably acceptable to the Trustee and the Note Purchaser and
which opinion shall be acceptable in form and substance to the Trustee and to
the Note Purchaser.

                  "ORIGINALLY SCHEDULED FACILITY TERMINATION DATE" means June
15, 2009.

                  "OTHER TAXES" has the meaning set forth in SECTION 3.06 of the
Note Purchase Agreement.

                  "OUTSTANDING" means, as of the date of determination, the
Notes theretofore authenticated and delivered under the Indenture except:

                  (i) Notes theretofore canceled by the Note Registrar or
         delivered to the Note Registrar for cancellation;

                  (ii) Notes the payment for which money in the necessary amount
         has been theretofore deposited with the Trustee or any Note Paying
         Agent in trust for the Holders of such Notes (provided, however, that
         if such Notes are to be prepaid, notice of such prepayment has been
         duly given pursuant to the Indenture, satisfactory to the Trustee); and

                  (iii) Notes in exchange for or in lieu of one or more other
         Notes which have been authenticated and delivered pursuant to the
         Indenture unless proof satisfactory to the Trustee is presented that
         any such Note is held by a bona fide purchaser.

                  "PERCENTAGE INTEREST" means (i) with respect to any Class A-1
Note, the percentage obtained by dividing (x) the Class A-1 Individual Invested
Amount by (y) the Class A-1 Aggregate Invested Amount, and (ii) with respect to
any Class A-2 Note, the percentage obtained by dividing (x) the Class A-2
Individual Invested Amount by (y) the Class A-2 Aggregate Invested Amount.

                  "PERSON" means any individual, corporation, estate,
partnership, limited liability company, joint venture, association, joint stock
company, trust (including any beneficiary thereof), unincorporated organization
or government or any agency or political subdivision thereof.

                  "PHYSICAL PROPERTY" has the meaning given to such term in the
definition of "Delivery" above.

                  "PLAN" means any Person that is (i) an "employee benefit plan"
(as defined in Section 3(3) of ERISA) that is subject to the provisions of Title
I of ERISA, (ii) a "plan" (as defined in Section 4975(e)(1) of the Code) that is
subject to Section 4975 of the Code or (ii) any entity whose underlying assets
include assets of a plan described in (i) or (ii) above by reason of such plan's
investment in the entity.

                  "PLEDGED RESIDUAL INTEREST ASSETS" has the meaning set forth
in the Granting Clause of the Indenture.

                  "PLEDGED RESIDUAL INTEREST CERTIFICATES" has the meaning set
forth in the Granting Clause of the Indenture.

                  "PREPAYMENT DATE" has the meaning specified in SECTION 10.1 of
the Indenture.

                  "PREPAYMENT FEE" has the meaning set forth in SECTION 3.02(B)
of the Note Purchase Agreement.

                  "PRINCIPAL COVERAGE RATIO VIOLATION" means on any
Determination Date, if the Class A Principal Coverage Ratio is less than the
Principal Coverage Ratio set forth in SCHEDULE III to the Note Purchase
Agreement with respect to the related Settlement Date.

                                      A-14
<PAGE>

                  "PROCEEDING" means any suit in equity, action at law or other
judicial or administrative proceeding.

                  "PURCHASER" means Folio Funding II LLC.

                  "RECORD DATE" means, with respect to a Settlement Date, the
close of business on the day immediately preceding such Settlement Date.

                  "RELEVANT REPORT" means any report, correspondence or other
statement of information related to (a) any Collateral, (b) any secured
financing facility under which CPS or any Affiliate thereof is a borrower, (c)
any securitization of motor vehicle loans or retail installment sale contracts
sponsored or contemplated by CPS, (d) any other actual or contemplated
securities issuance by CPS or any Affiliate of CPS, (e) the origination
policies, procedures or operations of CPS, (f) the servicing policies,
procedures or operations of CPS, or (g) any circumstance, event, or development
relating to the business, operations, properties, condition (financial or
otherwise) or prospects of CPS or the Issuer that constitutes, or is reasonably
likely to constitute, a Material Adverse Change or that has resulted in, or is
reasonably likely to result in, a Material Adverse Effect.

                  "REQUIRED NOTEHOLDERS' PRINCIPAL DISTRIBUTABLE AMOUNT" means
with respect to any Settlement Date subsequent to the Effective Date, the dollar
amount set forth in SCHEDULE III to the Note Purchase Agreement with respect to
such Settlement Date.

                  "REQUIREMENT OF LAW" means as to any Person, the certificate
of incorporation and bylaws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or
property is subject.

                  "RESIDUAL INTEREST ASSETS" means Residual Interest
Certificates, all rights with respect thereto and all proceeds of the foregoing.

                  "RESIDUAL INTEREST CERTIFICATE" means (i) an instrument or
certificate that evidences not less than 99.00% of the residual interest in a
Trust and represents the right to receive amounts to be distributed or paid to
the holders of the residual interests pursuant to the related Securitization
Transaction Documents or (ii) a Funding Trust Certificate.

                  "RESPONSIBLE OFFICER" means, in the case of the Trustee, the
chairman or vice-chairman of the board of directors, the chairman or
vice-chairman of the executive committee of the board of directors, the
president, vice-president, assistant vice-president or managing director, the
secretary, and assistant secretary or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of such
officer's knowledge of and familiarity with the particular subject.

                  "RULE 144A INFORMATION" has the meaning set forth in SECTION
3.25 of the Indenture.

                  "SALE AND CONTRIBUTION AGREEMENT" means the Amended and
Restated Sale and Contribution Agreement dated as of July 10, 2008, by and
between Folio Funding II LLC, as Purchaser and Issuer, and CPS, as Seller, as
the same may be further amended, supplemented or otherwise modified from time to
time in accordance with the terms thereof.

                  "SCHEDULED MATURITY DATE" means, with respect to the Class A-1
Notes, the Class A-1 Scheduled Maturity Date and with respect to the Class A-2
Notes, the Class A-2 Scheduled Maturity Date.

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

                  "SECURITIZATION ENTITY" has the meaning set forth in SECTION
5.02(i)(m) of the Note Purchase Agreement.

                                      A-15
<PAGE>

                  "SECURITIZATION ISSUER" has the meaning set forth in SECTION
5.02(i)(m) of the Note Purchase Agreement.

                  "SECURITIZATION TRANSACTION" means any securitization
transaction that is sponsored by CPS or any Affiliate thereof.

                  "SECURITIZATION TRANSACTION DOCUMENTS" shall mean,
collectively, all agreements, documents, instruments and certificates executed
and delivered in connection with any Securitization Transaction.

                  "SELLER" means Consumer Portfolio Services, Inc., and its
successors in interest to the extent permitted hereunder.

                  "SETTLEMENT DATE" means, the 18th day of each calendar month
or, if such 18th day is not a Business Day, the next Business Day.

                  "SETTLEMENT DATE STATEMENT" has the meaning specified in
SECTION 3.9 of the Indenture.

                  "SHADOW RATING FAILURE" means the failure of the
Administrative Agent to receive by the 90th day subsequent to the Effective Date
evidence satisfactory to it confirming that each class of securities that is
subject to an insurance policy or a surety bond issued by a monoline insurer
issued by each Securitization Issuer pursuant to the related Securitization
Transaction Documents are rated by Moody's and S&P (without giving effect to any
insurance policy or a surety bond issued by a monoline insurer).

                  "SPECIFIED AFFILIATES" means any Subsidiary of CPS, other than
an Excluded Subsidiary.

                  "STANDARD & POOR'S" means Standard & Poor's Ratings Services,
a division of The McGraw-Hill Companies, Inc., or its successor.

                  "STANWICH LITIGATION" means In re Structured Settlement
Litigation, Nos. BC 244111, 244271 and 243787 (Cal. Super. Ct. filed May 9,
2001).

                  "SUBSIDIARY" means, with respect to any Person, any
corporation, partnership, association or other business entity of which a
majority of the outstanding shares of capital stock or other equity interests
having ordinary voting power for the election of directors or their equivalent
is at the time owned by such Person directly or through one or more
Subsidiaries.

                  "TAXES" has the meaning set forth in SECTION 3.06 of the Note
Purchase Agreement.

                  "TERM" means, with respect to the Class A-1 Notes, the Class
A-1 Term and with respect to the Class A-2 Notes, the Class A-2 Term.

                  "TERMINATION DATE" means the date on which the Trustee shall
have received payment and performance of all Secured Obligations and disbursed
such payments in accordance with the Basic Documents and any and all other
amounts due and payable to the Issuer Secured Parties pursuant to the Basic
Documents have been paid in full.

                  "TRANSFER DATE" has the meaning set forth in ARTICLE I of the
Sale and Contribution Agreement.

                  "TRANSFER VALUE" has the meaning set forth in ARTICLE I of the
Sale and Contribution Agreement.

                  "TRANSFERRED RESIDUAL INTEREST CERTIFICATE" has the meaning
set forth in Article I of the Sale and Contribution Agreement.

                                      A-16
<PAGE>

                  "TRUST" means the statutory trust established pursuant to a
Trust Agreement to accept and hold a discrete pool of motor vehicle installment
contracts conveyed by CPS pursuant to the related Securitization Transaction
Documents, the beneficial ownership of which is evidenced by the Residual
Interest Certificate issued by such statutory trust.

                  "TRUST AGREEMENT" means an agreement between an Affiliate of
CPS, as depositor, and another Person, as owner trustee, pursuant to which a
Trust is established and governed.

                  "TRUST ESTATE" means all money, instruments, rights and other
property that are subject or intended to be subject to the lien and security
interest of the Indenture for the benefit of the Issuer Secured Parties,
including all Collateral Granted to the Trustee for the benefit of the Issuer
Secured Parties pursuant to the Granting Clause of the Indenture.

                  "TRUST RECEIPT" shall have the meaning set forth in SECTION
2.12 of the Indenture.

                  "TRUSTEE" means Wells Fargo Bank, National Association, a
national banking association, not in its individual capacity but as trustee
under the Indenture, or any successor trustee under the Indenture.

                  "TRUSTEE FEE" means (A) the fee payable to the Trustee on each
Settlement Date in accordance with the Fee Schedule, and (B) any other amounts
payable to the Trustee pursuant to the Fee Schedule.

                  "UCC" means the Uniform Commercial Code as in effect in the
relevant jurisdiction, as amended from time to time.

                  "VALUATION DATE" shall have the meaning set forth in SECTION
3.07 of the Note Purchase Agreement.

                  "WARRANTS" means the warrants to purchase common stock issued
by CPS to Citigroup Global Markets Inc., dated as of July 10, 2008,
substantially in the form attached as EXHIBIT A to the Note Purchase Agreement,
as the same may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof.

                                      A-17<PAGE>

EXHIBIT 10.21

                         AMENDED AND RESTATED INDENTURE

                               DATED JULY 10, 2008

                                      AMONG

                        FOLIO FUNDING II, LLC, AS ISSUER

           CITIGROUP FINANCIAL PRODUCTS INC., AS ADMINISTRATIVE AGENT

                                       AND

               WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE

<PAGE>
<TABLE>
<S>     <C>

                                     TABLE OF CONTENTS

                                                                                          PAGE

ARTICLE I             Definitions and Incorporation by Reference............................2

         SECTION 1.1           Definitions..................................................2

         SECTION 1.2           [Reserved]...................................................2

         SECTION 1.3           Other Definitional Provisions................................2

ARTICLE II            The Notes.............................................................3

         SECTION 2.1           Form.........................................................3

         SECTION 2.2           Execution, Authentication and Delivery.......................3

         SECTION 2.3           [Reserved]...................................................4

         SECTION 2.4           Registration; Registration of Transfer and Exchange..........4

         SECTION 2.5           Restrictions on Transfer and Exchange........................5

         SECTION 2.6           Mutilated, Destroyed, Lost or Stolen Notes...................7

         SECTION 2.7           Persons Deemed Owner.........................................8

         SECTION 2.8           Payment of Principal and Interest; Defaulted Interest........8

         SECTION 2.9           Cancellation.................................................9

         SECTION 2.10          No Release of Collateral.....................................9

         SECTION 2.11          [Reserved]...................................................9

         SECTION 2.12          Custody of Residual Interest Certificates by Trustee........10

ARTICLE III           Covenants............................................................11

         SECTION 3.1           Payment of Principal and Interest...........................11

         SECTION 3.2           Maintenance of Office or Agency.............................11

         SECTION 3.3           Money for Payments to be Held in Trust......................11

         SECTION 3.4           Existence...................................................13

         SECTION 3.5           Protection of Trust Estate..................................13

         SECTION 3.6           Opinions as to Trust Estate.................................14

         SECTION 3.7           Performance of Obligations..................................14

         SECTION 3.8           Negative Covenants..........................................15

         SECTION 3.9           Reporting by CPS............................................16

         SECTION 3.10          Annual Statement as to Compliance...........................16

         SECTION 3.11          Issuer May Consolidate, Etc. Only with Consent..............17

                                            i
<PAGE>

                                     TABLE OF CONTENTS
                                        (CONTINUED)

                                                                                          PAGE

         SECTION 3.12          Successor or Transferee.....................................17

         SECTION 3.13          No Other Business...........................................17

         SECTION 3.14          No Borrowing................................................17

         SECTION 3.15          Guarantees, Loans, Advances and Other Liabilities...........17

         SECTION 3.16          Capital Expenditures........................................18

         SECTION 3.17          Compliance with Laws........................................18

         SECTION 3.18          Restricted Payments.........................................18

         SECTION 3.19          Notice of Events of Default.................................18

         SECTION 3.20          Further Instruments and Acts................................18

         SECTION 3.21          Income Tax Characterization.................................18

         SECTION 3.22          Separate Existence of the Issuer............................18

         SECTION 3.23          Amendment of the Issuer's Organizational Documents..........18

         SECTION 3.24          Other Agreements............................................18

         SECTION 3.25          Rule 144A Information.......................................19

         SECTION 3.26          Change of Control...........................................19

ARTICLE IV            Satisfaction and Discharge...........................................19

         SECTION 4.1           Satisfaction and Discharge of Indenture.....................19

         SECTION 4.2           Application of Trust Money..................................20

         SECTION 4.3           Repayment of Moneys Held by Note Paying Agent...............20

ARTICLE V             Remedies.............................................................20

         SECTION 5.1           Events of Default...........................................20

         SECTION 5.2           Rights Upon Event of Default................................24

         SECTION 5.3           Collection of Indebtedness and Suits for
                               Enforcement by Trustee......................................25

         SECTION 5.4           Remedies....................................................27

         SECTION 5.5           Optional Preservation of the Trust Estate...................27

         SECTION 5.6           Deficiency..................................................27

         SECTION 5.7           Priorities..................................................28

         SECTION 5.8           Limitation of Suits.........................................28

                                            ii
<PAGE>

                                     TABLE OF CONTENTS
                                        (CONTINUED)

                                                                                          PAGE

         SECTION 5.9           Unconditional Rights of the Noteholders To
                               Receive Principal and Interest..............................29

         SECTION 5.10          Restoration of Rights and Remedies..........................29

         SECTION 5.11          Rights and Remedies Cumulative..............................29

         SECTION 5.12          Delay or Omission Not a Waiver..............................30

         SECTION 5.13          [Reserved]..................................................30

         SECTION 5.14          Waiver of Past Defaults.....................................30

         SECTION 5.15          Undertaking for Costs.......................................30

         SECTION 5.16          Waiver of Stay or Extension Laws............................30

         SECTION 5.17          Sale of Trust Estate........................................31

ARTICLE VI            The Trustee..........................................................32

         SECTION 6.1           Duties of Trustee...........................................32

         SECTION 6.2           Rights of Trustee...........................................33

         SECTION 6.3           Individual Rights of Trustee................................34

         SECTION 6.4           Trustee's Disclaimer........................................34

         SECTION 6.5           Notice of Defaults..........................................34

         SECTION 6.6           Reports by Trustee to the Noteholders.......................34

         SECTION 6.7           Compensation and Indemnity..................................34

         SECTION 6.8           Replacement of Trustee......................................35

         SECTION 6.9           Successor Trustee by Merger.................................36

         SECTION 6.10          Appointment of Co-Trustee or Separate Trustee...............36

         SECTION 6.11          Eligibility: Disqualification...............................37

         SECTION 6.12          [Reserved]..................................................37

         SECTION 6.13          Appointment and Powers......................................37

         SECTION 6.14          Performance of Duties.......................................38

         SECTION 6.15          Limitation on Liability.....................................38

         SECTION 6.16          [Reserved]..................................................38

         SECTION 6.17          Successor Trustee...........................................39

         SECTION 6.18          [Reserved]..................................................40

         SECTION 6.19          Representations and Warranties of the Trustee...............40

                                           iii
<PAGE>

                                     TABLE OF CONTENTS
                                        (CONTINUED)

                                                                                          PAGE

         SECTION 6.20          Waiver of Setoffs...........................................40

         SECTION 6.21          Control by the Majority Noteholders.........................40

ARTICLE VII           [Reserved]...........................................................41

ARTICLE VIII          Collection of Money and Releases of Trust Estate.....................41

         SECTION 8.1           Collection of Money.........................................41

         SECTION 8.2           Establishment of Collection Account.........................41

         SECTION 8.3           Collection Account..........................................41

         SECTION 8.4           [Reserved]..................................................42

         SECTION 8.5           Distributions...............................................42

         SECTION 8.6           Statements to Noteholders...................................43

         SECTION 8.7           Release of Trust Estate.....................................43

         SECTION 8.8           Opinion of Counsel..........................................43

ARTICLE IX            Supplemental Indentures..............................................44

         SECTION 9.1           Supplemental Indentures With the Consent of the
                               Administrative Agent and the Majority Noteholders...........44

         SECTION 9.2           Execution of Supplemental Indentures........................44

         SECTION 9.3           Effect of Supplemental Indenture............................44

ARTICLE X             REPAYMENT AND PREPAYMENT OF NOTES....................................44

         SECTION 10.1          Repayment of the Notes; Optional Prepayment of
                               the Notes...................................................44

         SECTION 10.2          Notice of Prepayment........................................45

         SECTION 10.3          General Procedures..........................................45

ARTICLE XI            MISCELLANEOUS........................................................46

         SECTION 11.1          Compliance Certificates and Opinions, etc...................46

         SECTION 11.2          Form of Documents Delivered to Trustee......................47

         SECTION 11.3          Acts of the Noteholders or the Administrative Agent.........48

         SECTION 11.4          Notices, etc., to Trustee, Issuer, the Administrative
                               Agent and Noteholders.......................................48

         SECTION 11.5          Waiver......................................................49

         SECTION 11.6          Alternate Payment and Notice Provisions.....................50

         SECTION 11.7          Effect of Headings and Table of Contents....................50

                                            iv
<PAGE>

                                     TABLE OF CONTENTS
                                        (CONTINUED)

                                                                                          PAGE

         SECTION 11.8          Successors and Assigns......................................50

         SECTION 11.9          Benefits of Indenture.......................................50

         SECTION 11.10         Severability................................................50

         SECTION 11.11         Legal Holidays..............................................50

         SECTION 11.12         Governing Law...............................................50

         SECTION 11.13         Counterparts................................................51

         SECTION 11.14         Recording of Indenture......................................51

         SECTION 11.15         Issuer Obligation...........................................51

         SECTION 11.16         No Petition.................................................51

         SECTION 11.17         Books and Records; Inspection; Other Information............52

         SECTION 11.18         Entire Agreement............................................52

         SECTION 11.19         Effectiveness...............................................52

         SECTION 11.20         Specific Performance........................................52
</TABLE>

                                            v

<PAGE>

EXHIBIT A-1           Form of Class A-1 Note

EXHIBIT A-2           Form of Class A-2 Note

EXHIBIT B             Form of Transferor's Certificate

EXHIBIT C             Form of Transferee Representation Letter (QIB)

EXHIBIT D             Form of Transferee Representation Letter (IAI)

EXHIBIT E             Form of Settlement Date Statement

EXHIBIT F             Form of Trust Receipt

Schedule I            Initial Pledged Residual Interest Certificates

Schedule II           Pledged Residual Interest Certificates

                                       i
<PAGE>

         AMENDED AND RESTATED INDENTURE dated July 10, 2008, among FOLIO FUNDING
II, LLC, a Delaware limited liability company (the "ISSUER"), CITIGROUP
FINANCIAL PRODUCTS INC., a Delaware corporation (the "ADMINISTRATIVE AGENT") and
WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as
trustee (the "TRUSTEE").

         In connection with a securitization transaction, the Issuer, the
Administrative Agent and the Trustee have entered into that certain Indenture,
dated as of July 11, 2007 (the "ORIGINAL INDENTURE") pursuant to which the
Issuer issued two classes of notes designated as Class A-1 Variable Funding
Notes (the "INITIAL CLASS A-1 NOTES") and Class A-2 Term Notes (the "INITIAL
CLASS A-2 NOTES").

         Section 9.1 of the Original Indenture permits the Issuer, the
Administrative Agent and the Trustee, when authorized by an Issuer Order, to
amend the Original Indenture with the prior written consent of the
Administrative Agent and the Majority Noteholders.

         The Issuer, the Administrative Agent and the Trustee intend to change
certain terms of the securitization transaction and amend and restate the
Original Indenture in its entirety to, among other things, reflect (i) the
amendment and restatement of the Initial Class A-1 Notes in order to redesignate
them as Class A-1 Term Notes (the "CLASS A-1 NOTES") and the amendment and
restatement of the Initial Class A-2 Term Notes (the "CLASS A-2 NOTES" and,
together with the Class A-1 Notes, the "NOTES"), (ii) a prepayment of the
Initial Class A-1 Notes in order to reduce the outstanding principal amount of
the Initial Class A-1 Notes to $10,000,000, such prepayment to be comprised of
Warrants and one or more cash payments and (iii) the continuation of the
Trustee's original security interest in the Collateral (as defined below) for
the benefit of the Issuer Secured Parties (as defined below).

         The Administrative Agent and the Majority Noteholders desire to consent
to the amendment and restatement of the Original Indenture in its entirety.

         In consideration of the foregoing, other good and valuable
consideration, and the mutual covenants and agreements contained herein, the
parties hereto desire to amend and restate the Original Indenture and agree as
follows:

         As security for the payment and performance by the Issuer of its
obligations under this Indenture and the Notes, the Issuer has assigned the
Collateral (as defined below) as collateral to the Trustee for the benefit of
the Issuer Secured Parties (as defined below).

                                 GRANTING CLAUSE

         As collateral security for the prompt payment in full when due of all
the Issuer's obligations to the Administrative Agent and the Noteholders
(collectively, the "ISSUER SECURED PARTIES") under this Indenture, the Notes and
the other Basic Documents (collectively, the "ISSUER SECURED OBLIGATIONS"), the
Issuer hereby Grants (as of the date of the Original Indenture) to the Trustee,
for the benefit of the Issuer Secured Parties, a continuing security interest in
favor of the Trustee, for the benefit of the Issuer Secured Parties, in all of
the Issuer's right, title and interest in, to and under (in each case, whether
now owned or existing, or hereafter acquired or arising) all accounts, payment
intangibles, general intangibles, chattel paper, tangible chattel paper,
electronic chattel paper, instruments, certificated securities, uncertificated

                                       1
<PAGE>

securities, financial assets, security entitlements, cash and currency, deposit
accounts, letter-of-credit rights, investment property, and any and all other
property of any type or nature owned by it, including without limitation: (1)
each Residual Interest Certificate sold or contributed to, or otherwise acquired
by, it pursuant to the Sale and Contribution Agreement (each, a "PLEDGED
RESIDUAL INTEREST CERTIFICATE") and the right to receive all monies remitted,
recovered or otherwise recovered in respect thereof after the Initial Funding
Date, (2) all other Residual Interest Assets owned by it (collectively with the
Pledged Residual Interest Certificates, the "PLEDGED RESIDUAL INTEREST ASSETS"),
(3) the Collection Account and all investments, obligations and other property
from time to time credited thereto, (4) the Issuer's rights in respect of the
Sale and Contribution Agreement, and (5) all proceeds of, all accessions to and
substitutions and replacements for, any of the foregoing, and all rents, profits
and products of any thereof (all such property described in this Granting Clause
collectively constituting the "COLLATERAL").

         The Trustee hereby acknowledges such Grant, accepts the trusts under
this Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties as required in this Indenture. The Trustee hereby further
acknowledges that it has received the Residual Interest Certificates described
in SCHEDULE I hereto (the "INITIAL PLEDGED RESIDUAL INTEREST CERTIFICATES"),
each duly endorsed by the Seller to "Wells Fargo Bank, National Association, as
Trustee for the benefit of the Administrative Agent and the holders of the Notes
issued by Folio Funding II, LLC", and agrees to maintain continuous possession
of the Pledged Residual Certificates in the State of Minnesota for the benefit
of the Issuer Secured Parties, subject to the terms and conditions of this
Indenture.

         For the avoidance of doubt, the Issuer hereby confirms its Grant to the
Trustee on behalf of the Issuer Secured Parties of a security interest in the
Collateral pursuant to the Original Indenture and notwithstanding anything to
the contrary contained in this Indenture, the security interest Granted by the
Issuer hereunder is an extension and continuation of the security interest
Granted under the Original Indenture.

                                    ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE
                   ------------------------------------------

         SECTION 1.1 DEFINITIONS. Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to them in ANNEX A to
the Amended and Restated Note Purchase Agreement dated as of July 10, 2008 by
and between Folio Funding II, LLC, Consumer Portfolio Services, Inc. and
Citigroup Financial Products Inc. (the "NOTE PURCHASE AGREEMENT").

         SECTION 1.2 [RESERVED]

         SECTION 1.3 OTHER DEFINITIONAL PROVISIONS.

         (a) All terms defined in this Indenture shall have the defined meanings
when used in any instrument governed hereby and in any certificate or other
document made or delivered pursuant hereto unless otherwise defined therein.

         (b) Accounting terms used but not defined or partly defined in this
Indenture, in any instrument governed hereby or in any certificate or other
document made or delivered pursuant hereto, to the extent not defined, shall
have the respective meanings given to them under GAAP or any such instrument,
certificate or other document, as applicable. To the extent that the definitions

                                       2
<PAGE>

of accounting terms in this Indenture or in any such instrument, certificate or
other document are inconsistent with the meanings of such terms under GAAP, the
definitions contained in this Indenture or in any such instrument, certificate
or other document shall control.

         (c) The words "HEREOF," "HEREIN," "HEREUNDER" and words of similar
import when used in this Indenture shall refer to this Indenture as a whole and
not to any particular provision of this Indenture.

         (d) Section, Schedule and Exhibit references contained in this
Indenture are references to Sections, Schedules and Exhibits in or to this
Indenture unless otherwise specified; and the term "INCLUDING" shall mean
"INCLUDING WITHOUT LIMITATION."

         (e) The definitions contained in this Indenture are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

         (f) Any agreement, instrument or statute defined or referred to herein
or in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as the same may from time to time be amended,
modified or supplemented and includes (in the case of agreements or instruments)
references to all attachments and instruments associated therewith; all
references to a Person include its permitted successors and assigns.

         (g) The singular form of the terms "NOTE" and "NOTEHOLDER" shall not
preclude issuance of more than one Note or ownership of Notes by more than one
Noteholder. The singular forms of such terms shall also mean the plural forms of
such terms and the plural form of such terms shall also mean the singular form
thereof, in each case as the context requires.

                                   ARTICLE II
                                    THE NOTES
                                    ---------

         SECTION 2.1 FORM.

         (a) The Class A-1 Notes and the Class A-2 Notes, each together with the
Trustee's certificate of authentication, shall be in substantially the form set
forth in EXHIBITS A-1 AND A-2, respectively, with such appropriate insertions,

                                       3
<PAGE>

omissions, substitutions and other variations as are required or permitted by
this Indenture 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 officers executing such Notes, as
evidenced by their execution of the Notes. Any portion of the text of any Note
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Note. The Initial Class A-1 Notes and the Initial Class A-2
Notes were issued on the Initial Funding Date. On the terms and conditions set
forth in the Note Purchase Agreement, the Sale and Contribution Agreement and
this Agreement, and in reliance on the covenants, representations and agreements
set forth herein and therein, the Initial Class A-1 Notes and the Initial Class
A-2 Notes shall be amended and restated as of the Effective Date and the Issuer
shall cause the Trustee to authenticate and deliver to the Note Purchaser the
Notes on the Effective Date. The Class A-1 Notes shall be term in nature and
shall be fully drawn in the Class A-1 Facility Amount on the Effective Date. The
Class A-2 Notes shall be term in nature and were fully drawn in the Class A-2
Facility Amount on the Initial Funding Date. Any amounts prepaid under the Class
A-1 Notes or the Class A-2 Notes may not be reborrowed.

         (b) The Notes shall be typewritten, printed, lithographed or engraved
or produced by any combination of these methods (with or without steel engraved
borders), all as determined by the officers executing the Notes, as evidenced by
their execution of the Notes.

         (c) The terms of the Class A-1 Notes and Class A-2 Notes set forth in
EXHIBITS A-1 AND A-2, respectively, are part of the terms of this Indenture.

         SECTION 2.2 EXECUTION, AUTHENTICATION AND DELIVERY.

         (a) The Notes shall be executed on behalf of the Issuer by any of its
Authorized Officers. The signature of any such Authorized Officer on the Notes
may be manual or facsimile.

         (b) Notes bearing the manual or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Note.

         (c) Upon receipt of (i) the Initial Class A-1 Notes and the Initial
Class A-2 Notes for cancellation and (ii) an Issuer Order for authentication and
delivery, the Trustee shall authenticate and deliver (i) Class A-1 Notes in an
aggregate principal amount equal to the Class A-1 Facility Amount and (ii) Class
A-2 Notes in an aggregate principal amount equal to the Class A-2 Facility
Amount.

         (d) Each Note shall be dated the date of its authentication.

         (e) No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears attached to such Note
a certificate of authentication substantially in the form provided for herein,
executed by the Trustee by the manual signature of one of its authorized
signatories, and such certificate attached to any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated
hereunder.

         SECTION 2.3 [RESERVED]

         SECTION 2.4 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.

         (a) The Issuer shall cause the Trustee to keep a register (the "NOTE
REGISTER") in which, subject to such reasonable regulations as it may prescribe
and subject to the provisions of SECTION 2.5, the Trustee shall provide for the
registration of the Notes, and the registration of transfers and exchanges of
the Notes. The Trustee is, and shall be "NOTE REGISTRAR" for the purpose of
registering the Notes and transfers of the Notes as herein provided. Upon any
resignation or removal of any Note Registrar, the Issuer shall promptly appoint
a successor.

                                       4
<PAGE>

         (b) If a Person other than the Trustee is appointed by the Issuer as
Note Registrar, such Person must be acceptable to the Administrative Agent and,
in addition, the Issuer will give the Trustee, the Administrative Agent and the
Noteholders prompt written notice of the appointment of such Note Registrar
(once approved by the Administrative Agent) and of the location, and any change
in the location, of the Note Register, and the Trustee and the Administrative
Agent shall have the right to inspect the Note Register at all reasonable times
and to obtain copies thereof. The Trustee shall have the right to conclusively
rely upon a certificate executed on behalf of the Note Registrar by an Executive
Officer thereof as to the name and address of each Holder of the Note and the
Percentage Interest and number of each Note.

         (c) Subject to SECTION 2.5 hereof, upon surrender for registration of
transfer of a Note at the office or agency of the Issuer to be maintained as
provided in SECTION 3.2, if the requirements of Section 8-401(a) of the UCC are
met, the Trustee shall have the Issuer execute and the Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes in the minimum Percentage Interest of 1%
representing in the aggregate the Percentage Interest on the face of the Note to
be transferred.

         (d) At the option of a Holder, a Note may be exchanged for another Note
in any authorized Percentage Interest, of the same class and a like aggregate
Percentage Interest, upon surrender of the Note to be exchanged at such office
or agency. Whenever a Note is so surrendered for exchange, subject to SECTION
2.5 hereof, if the requirements of Section 8-401(a) of the UCC are met, the
Issuer shall execute, and upon request by the Issuer the Trustee shall
authenticate, and the Noteholder shall obtain from the Trustee, the Note which
the Noteholder making the exchange is entitled to receive.

         (e) Any Note issued upon any registration of transfer or exchange of a
Note shall be the valid obligation of the Issuer, evidencing, in the aggregate,
the same debt, and entitled to the same benefits under this Indenture, as the
Note surrendered upon such registration of transfer or exchange.

         (f) Every Note presented or surrendered for registration of transfer or
exchange shall be (i) duly endorsed by, or accompanied by a written assignment
in substantially the forms attached to EXHIBITS A-1 AND A-2 duly executed by,
the Holder thereof or such Holder's attorney, duly authorized in writing, with
such signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar which requirements include membership or
participation in Securities Transfer Agents Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Note Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended, and (ii) accompanied by such other
documents as the Trustee may require.

         (g) No service charge shall be made to a Holder for any registration of
transfer or exchange of a Note, but the Note Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange of a Note.

         (h) The preceding provisions of this SECTION 2.4 notwithstanding, the
Issuer shall not be required to make and the Note Registrar shall not register
transfers or exchanges of a Note selected for redemption or of any Note for a
period of two (2) Business Days preceding the due date for any payment with
respect to such Note.

         SECTION 2.5 RESTRICTIONS ON TRANSFER AND EXCHANGE.

         (a) No transfer of a Note shall be made unless the transferor thereof
has provided a representation letter substantially in the form of EXHIBIT B that
such transfer is (i) to the Issuer or an Affiliate of the Issuer, or (ii) in
compliance with Section 2.5(b) hereof, to a qualified institutional buyer (as

                                       5
<PAGE>

defined in Rule 144A under the Securities Act) in a transaction meeting the
requirements of Rule 144A under the Securities Act, or (iii) in compliance with
Section 2.5(c) hereof, (A) to an institutional investor that is an "ACCREDITED
INVESTOR" as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D
promulgated under the Securities Act, or (iv) in a transaction complying with or
exempt from the registration requirements of the Securities Act and in
accordance with any applicable securities laws of any state of the United States
or any other jurisdiction; PROVIDED, that, in the case of CLAUSE (IV) the
Trustee or the Issuer may require an Opinion of Counsel to the effect that such
transfer may be effected without registration under the Securities Act, which
Opinion of Counsel, if so required, shall be addressed to the Issuer and the
Trustee and shall be secured at the expense of the Holder. Each prospective
purchaser by its acquisition of a Note, acknowledges that such Note will contain
a legend substantially to the effect set forth in SECTION 2.5(f) (unless the
Issuer determines otherwise in accordance with applicable law).

         (b) Any transfer or exchange of a Note to a proposed transferee shall
be conducted in accordance with the provisions of Section 2.4, and shall be
contingent upon receipt by the Note Registrar of (A) such Note properly endorsed
for assignment or transfer, (B) written instruction from such transferring
Holder directing the Note Registrar to cause the transfer to such transferees,
in such Percentage Interests (not to exceed the Percentage Interest on the face
of the Note to be transferred) as the transferring Holder shall specify in such
instructions; and (C) such certificates or signatures as may be required under
such Note or this Section 2.5, in each case, in form and substance satisfactory
to the Note Registrar. The Note Registrar shall cause any such transfers and
related cancellations or increases and related reductions, as applicable, to be
properly recorded in its books in accordance with the requirements of Section
2.4.

         (c) If a Note is sold to a "qualified institutional buyer" as defined
in Rule 144A of the Securities Act purchasing for its own account or for the
account of another "qualified institutional buyer," such Note shall be issued as
a certificated Note in definitive, fully registered form without interest
coupons with the applicable legends set forth in the form of the Note registered
in the name of the beneficial owner or a nominee thereof, duly executed by the
Issuer and authenticated by the Trustee as hereinafter provided. Any transfer to
an "qualified institutional buyer" is expressly conditioned upon the requirement
that such transferee shall deliver a representation letter in the form of
EXHIBIT C.

         (d) If the Note is sold in the United States to U.S. Persons under
Section 4(2) of the Securities Act to institutional "ACCREDITED INVESTORS" (as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act), it shall
be issued in the form of a certificated Note in definitive, fully registered
form without interest coupons with the applicable legends set forth in the form
of the Note registered in the name of the beneficial owner or a nominee thereof,
duly executed by the Issuer and authenticated by the Trustee as hereinafter
provided. Any transfer to an institutional "ACCREDITED INVESTOR" is expressly
conditioned upon the requirement that such transferee shall deliver a
representation letter in the form of EXHIBIT D.

         (e) The Note Registrar shall not register any transfer or exchange of
any Note to the extent that upon such transfer or exchange there would be more
than ten (10) Noteholders of each class then reflected on the Note Register. For
purposes of determining the number of Noteholders, a Person (beneficial owner)
owning an interest in a partnership (including any entity treated as a
partnership for federal income tax purposes), grantor trust, or S corporation
(flow-through entity), that owns, directly or through other flow-through
entities, an interest in the Notes, is treated as a Noteholder if:

                  (i) Substantially all of the value of the beneficial owner's
         interest in the flow-through entity is attributable to the flow-through
         entity's interest (direct or indirect) in the Notes; and

                  (ii) A principal purpose of the use of the tiered arrangement
         is to permit the satisfaction of the ten (10) Noteholder limitation.

         (f) Unless the Issuer determines otherwise in accordance with
applicable law, each Note shall have the following legend:

                                       6
<PAGE>

                  THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
                  ANY STATE SECURITIES LAWS OR "BLUE SKY" LAWS AND MAY BE
                  RESOLD, PLEDGED OR TRANSFERRED ONLY TO (I) THE ISSUER (UPON
                  REDEMPTION THEREOF OR OTHERWISE) OR AN AFFILIATE OF THE ISSUER
                  (AS CERTIFIED BY THE ISSUER) OR (2) AN INSTITUTIONAL INVESTOR
                  THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(A)(1),
                  (2), (3) OR (7) OF REGULATION D PROMULGATED UNDER THE
                  SECURITIES ACT THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY IN
                  THE FORM SPECIFIED IN THE INDENTURE, TO THE EFFECT THAT IT IS
                  AN INSTITUTIONAL ACCREDITED INVESTOR ACTING FOR ITS OWN
                  ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY
                  OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL
                  ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS
                  FIDUCIARY CAPACITY) (3) SO LONG AS THIS NOTE IS ELIGIBLE FOR
                  RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, IN A
                  TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A TO A PERSON
                  THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY IN THE FORM
                  SPECIFIED IN THE INDENTURE, TO THE EFFECT THAT SUCH PERSON IS
                  A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A),
                  ACTING FOR ITS OWN ACCOUNT, OR AS A FIDUCIARY OR AGENT FOR
                  OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS)
                  TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE, OR TRANSFER IS
                  BEING MADE IN RELIANCE ON RULE 144A, OR (4) IN A TRANSACTION
                  OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
                  SECURITIES ACT, APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
                  UNITED STATES OR ANY OTHER JURISDICTION, IN EACH SUCH CASE, IN
                  COMPLIANCE WITH THE INDENTURE AND ALL APPLICABLE SECURITIES
                  LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
                  JURISDICTION: PROVIDED, THAT, IN THE CASE OF CLAUSE (4), THE
                  TRUSTEE OR THE ISSUER MAY REQUIRE AN OPINION OF COUNSEL TO THE
                  EFFECT THAT SUCH TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION
                  UNDER THE SECURITIES ACT, WHICH OPINION OF COUNSEL, IF SO
                  REQUIRED, SHALL BE ADDRESSED TO THE ISSUER AND THE TRUSTEE AND
                  SHALL BE SECURED AT THE EXPENSE OF THE HOLDER. NO
                  REPRESENTATION IS MADE AS TO THE AVAILABILITY OF THE EXEMPTION
                  PROVIDED BY RULE 144A FOR RESALES OF THIS NOTE.

                  THE NOTE REGISTRAR SHALL NOT REGISTER ANY TRANSFER OR EXCHANGE
                  OF THIS NOTE TO THE EXTENT THAT UPON SUCH TRANSFER OR EXCHANGE
                  THERE WOULD BE MORE THAN TEN (10) NOTEHOLDERS THEN REFLECTED
                  ON THE NOTE REGISTER.

         SECTION 2.6 MUTILATED, DESTROYED, LOST OR STOLEN NOTES.

         (a) If (i) any mutilated Note is surrendered to the Trustee, or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Note, and (ii) there is delivered to the Trustee such security or
indemnity as may be required by it to hold the Issuer and the Trustee harmless,
then, in the absence of notice to the Issuer, the Note Registrar or the Trustee
that such Note has been acquired by a protected purchaser, and, provided that
the requirements of Section 8-405 and 8-406 of the UCC are met, the Issuer shall
execute, and upon request by the Issuer, the Trustee shall authenticate and
deliver in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Note, a replacement Note; provided, however, that if any such destroyed,
lost or stolen Note, but not a mutilated Note, shall have become, or within

                                       7
<PAGE>

seven days shall be, due and payable or shall have been called for redemption,
instead of issuing a replacement Note, the Issuer may direct the Trustee, in
writing, to pay such destroyed, lost or stolen Note when so due or payable
without surrender thereof. If, after the delivery of such replacement Note or
payment of a destroyed, lost or stolen Note pursuant to the preceding sentence,
a protected purchaser of the original Note in lieu of which such replacement
Note was issued, presents for payment such original Note, the Issuer and the
Trustee shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any assignee of such Person, except
a protected purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Trustee in connection therewith.

         (b) Upon the issuance of any replacement Note under this Section, the
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Trustee) connected therewith.

         (c) Every replacement Note issued pursuant to this Section in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

         (d) The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of any mutilated, destroyed, lost or stolen Note.

         SECTION 2.7 PERSONS DEEMED OWNER. Prior to due presentment for
registration of transfer of any Note, the Trustee and any agent of the Trustee
may treat the Person in whose name such Note is registered (as of the applicable
Record Date) as the owner of such Note for the purpose of receiving payments of
principal of and interest, if any, on such Note, for all other purposes
whatsoever and whether or not such Note be overdue, and none of the Trustee or
any agent of the Trustee shall be affected by notice to the contrary.

         SECTION 2.8 PAYMENT OF PRINCIPAL AND INTEREST; DEFAULTED INTEREST.

         (a) The Class A-1 Notes and the Class A-2 Notes shall accrue interest
as provided in the forms of Class A-1 Notes and Class A-2 Notes set forth in
EXHIBITS A-1 AND A-2, respectively, and such interest shall be due and payable
on each Settlement Date as specified therein. Any installment of interest or
principal, if any, payable on any Note which is punctually paid or duly provided
for by the Issuer on the applicable Settlement Date shall be paid to the Person
in whose name such Note (or one or more Predecessor Notes) is registered on the
related Record Date either (i) by wire transfer in immediately available funds
to such Person's account as it appears on the Note Register on such Record Date
if (A) such Noteholder has provided to the Note Registrar appropriate written
instructions at least five Business Days prior to such Settlement Date and such
Holder's Note in the aggregate evidences a Percentage Interest of not less than
1% or (B) such Noteholder is the Seller, or an Affiliate thereof, or if not,
(ii) by check mailed to such Noteholder at the address of such Noteholder
appearing on the Note Register, except for the final installment of principal
payable with respect to such Note on a Settlement Date or on the Facility
Termination Date, which shall be payable as provided below.

                                       8
<PAGE>

         (b) (i) The principal of the Class A-1 Notes shall be payable on each
Settlement Date as set forth in Section 8.5 hereof and if a Collateral
Deficiency exists, a prepayment of principal shall be made pursuant to the terms
of Section 3.07 of the Note Purchase Agreement and (ii) the principal of the
Class A-2 Notes shall be payable on each Settlement Date as set forth in Section
8.5 hereof after the Class A-1 Invested Amount has been reduced to zero and if a
Collateral Deficiency exists, a prepayment of principal shall be made pursuant
to the terms of Section 3.07 of the Note Purchase Agreement. The entire unpaid
principal amount of the Notes shall become immediately due and payable, upon the
declaration of acceleration of maturity by the Trustee pursuant to Section 5.2
hereof. In addition, the Aggregate Invested Amount and all accrued and unpaid
interest on the Notes shall be due and payable in full on the Facility
Termination Date and otherwise as provided in SECTION 3.1, SECTION 8.5 and if
applicable, SECTION 5.7, and the forms of Notes attached hereto as EXHIBITS A-1
AND A-2. The principal amount outstanding under the Notes of any class at any
time shall be equal to the related Invested Amount. All principal payments on
the Notes of a class shall be made pro rata to the Noteholders of such class
entitled thereto based on their respective Percentage Interests of the related
Invested Amount. Upon written notice from the Issuer, the Trustee shall notify
the Person in whose name a Note is registered at the close of business on the
Record Date preceding the Settlement Date on which the Issuer expects that the
final installment of principal of and interest on such Note will be paid. Such
notice shall be transmitted by facsimile prior to such final Settlement Date and
shall specify that such final installment will be payable only upon presentation
and surrender of such Note and shall specify the place where such Note may be
presented and surrendered for payment of such installment.

         (c) If the Issuer defaults in a payment of interest on a class of
Notes, the Issuer shall pay defaulted interest (plus interest on such defaulted
interest to the extent lawful) at the applicable Note Interest Rate in any
lawful manner. The Issuer shall pay such defaulted interest to the Noteholders
on the immediately following Settlement Date. At least three (3) days before any
such Settlement Date, the Issuer shall mail to the Noteholders and the Trustee a
notice that states the Settlement Date and the amount of defaulted interest to
be paid.

         SECTION 2.9 CANCELLATION. Any Note surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be promptly
canceled by the Trustee. The Issuer may at any time deliver to the Trustee for
cancellation any Note previously authenticated and delivered hereunder which the
Issuer may have acquired in any manner whatsoever, and the Note so delivered
shall be promptly canceled by the Trustee. No Note shall be authenticated in
lieu of or in exchange for any Note canceled as provided in this Section, except
as expressly permitted by this Indenture. A canceled Note may be held or
disposed of by the Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Order that they be destroyed or returned to it; provided that such Issuer Order
is timely and such Note has not been previously disposed of by the Trustee.

         SECTION 2.10 NO RELEASE OF COLLATERAL. No Collateral shall be released
from the lien of this Indenture until satisfaction and discharge of this
Indenture in accordance with Article IV hereof.

         SECTION 2.11 [Reserved].

                                       9
<PAGE>

         SECTION 2.12 CUSTODY OF RESIDUAL INTEREST CERTIFICATES BY TRUSTEE. In
connection with any Funding Date prior to the Effective Date, the Issuer
delivered to the Trustee the Residual Interest Certificates set forth in
SCHEDULE II thereto acquired by the Issuer pursuant to the Sale and Contribution
Agreement. Each such Residual Interest Certificate was indorsed by the
registered owner thereof to the Trustee or in blank, and included an assignment
executed by the registered owner thereof in the form attached to such Residual
Interest Certificate. The Trustee currently holds and will continue to hold each
Residual Interest Certificate delivered to it as Trustee, custodian, agent and
bailee in trust for the use and benefit of the Issuer Secured Parties until such
Residual Interest Certificate is released from the Lien of this Indenture in
accordance with the terms hereof. The Trustee executed and delivered to the
Administrative Agent a receipt substantially in the form of EXHIBIT F hereto (a
"TRUST RECEIPT") for such Residual Interest Certificate(s) received by the
Trustee. By its delivery of a Trust Receipt, the Trustee is deemed to have
acknowledged receipt of each Residual Interest Certificate that the Seller has
represented was purchased by the Purchaser on the related Funding Date as
indicated in the related Confirmation Statement, (b) reviewed each such Residual
Interest Certificate and (c) determined that each such Residual Interest
Certificate has been properly indorsed to it or in blank and contains an
assignment executed by the registered owner thereof in the form attached to such
Residual Interest Certificate.

                                       10
<PAGE>

                                   ARTICLE III
                                    COVENANTS
                                    ---------

         SECTION 3.1 PAYMENT OF PRINCIPAL AND INTEREST. The Issuer will duly and
punctually pay the principal of and interest on the Notes in accordance with the
terms of the Notes and this Indenture. Without limiting the foregoing, the
Issuer will cause to be distributed on each Settlement Date all amounts
deposited in the Collection Account to which the Noteholders are entitled under
this Indenture. Amounts properly withheld under the Code by the Trustee from a
payment to any Noteholder of interest and/or principal shall be considered as
having been paid by the Issuer to such Noteholder for all purposes of this
Indenture.

         SECTION 3.2 MAINTENANCE OF OFFICE OR AGENCY. The Issuer has maintained
and will maintain in Minneapolis, Minnesota, an office or agency where Notes may
be surrendered for registration of transfer or exchange, and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be
served. The Issuer has appointed the Trustee to serve as its agent for the
foregoing purposes. The Issuer will give prompt written notice to the Trustee,
the Administrative Agent and the Noteholders of the location, and of any change
in the location, of any such office or agency. If at any time the Issuer shall
fail to maintain any such office or agency or shall fail to furnish the Trustee
with the address thereof, such surrenders, notices and demands may be made or
served at the Corporate Trust Office, and the Issuer hereby appoints the Trustee
as its agent to receive all such surrenders, notices and demands.

         SECTION 3.3 MONEY FOR PAYMENTS TO BE HELD IN TRUST.

         (a) Except as provided in SECTION 3.3(C) hereof, all payments of
amounts due and payable with respect to the Notes that are to be made from
amounts withdrawn from the Collection Account shall be made on behalf of the
Issuer by the Trustee or by the Note Paying Agent.

         (b) The Issuer shall cause each Note Paying Agent other than the
Trustee to execute and deliver to the Trustee an instrument in which such Note
Paying Agent shall agree with the Trustee and the Administrative Agent (and if
the Trustee acts as Note Paying Agent, it hereby so agrees), subject to the
provisions of this Section, that such Note Paying Agent shall:

                  (i) hold all sums held by it for the payment of amounts due
         with respect to the Notes in trust for the benefit of the Persons
         entitled thereto until such sums shall be paid to such Persons or
         otherwise disposed of as herein provided and pay such sums to such
         Persons as herein provided;

                  (ii) give the Trustee notice of any default by the Issuer (or
         any other obligor upon the Notes) of which it has actual knowledge in
         the making of any payment required to be made with respect to the
         Notes;

                                       11
<PAGE>

                  (iii) at any time during the continuance of any such default,
         upon the written request of the Trustee, forthwith pay to the Trustee
         all sums so held in trust by such Note Paying Agent;

                  (iv) immediately resign as a Note Paying Agent and forthwith
         pay to the Trustee all sums held by it in trust for the payment of the
         Notes if at any time it ceases to meet the standards required to be met
         by a Note Paying Agent at the time of its appointment; and

                  (v) comply with all requirements of the Code with respect to
         the withholding from any payments made by it on the Notes of any
         applicable withholding taxes imposed thereon and with respect to any
         applicable reporting requirements in connection therewith.

         (c) The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order direct any Note Paying Agent to pay to the Trustee all sums held in trust
by such Note Paying Agent, such sums to be held by the Trustee upon the same
trusts as those upon which the sums were held by such Note Paying Agent; and
upon such a payment by any Note Paying Agent to the Trustee, such Note Paying
Agent shall be released from all further liability with respect to such money.

         (d) Subject to applicable laws with respect to the escheat of funds,
any money held by the Trustee or any Note Paying Agent in trust for the payment
of any amount due with respect to the Notes and remaining unclaimed for two
years after such amount has become due and payable shall be discharged from such
trust and be paid to the Issuer on Issuer Request and shall be deposited by the
Trustee in the Collection Account; and the Noteholders shall thereafter, as
unsecured general creditors, look only to the Issuer for payment thereof (but
only to the extent of the amounts so paid to the Issuer), and all liability of
the Trustee or such Note Paying Agent with respect to such trust money shall
thereupon cease; provided, however, that the Trustee or such Note Paying Agent,
before being required to make any such repayment, shall at the expense of the
Issuer cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in the City of New York, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Issuer. The Trustee shall also adopt and employ, at the
expense of the Issuer, any other reasonable means of notification of such
repayment (including, but not limited to, mailing notice of such repayment to
the Holder whose Notes have been called but have not been surrendered for
redemption or whose right to or interest in moneys due and payable but not
claimed is determinable from the records of the Trustee or of any Note Paying
Agent, at the last address of record for each such Holder).

                                       12
<PAGE>

         SECTION 3.4 EXISTENCE. Except as otherwise permitted by the provisions
of Section 3.11, the Issuer has kept and will keep in full effect its existence,
rights and franchises as a limited liability company under the laws of the State
of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
in which case the Issuer has kept and will keep in full effect its existence,
rights and franchises under the laws of such other jurisdiction) and will obtain
and preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Trust Estate.

         SECTION 3.5 PROTECTION OF TRUST ESTATE. The Issuer intends the security
interest granted pursuant to this Indenture in favor of the Trustee for the
benefit of the Issuer Secured Parties to be prior to all other liens in respect
of the Trust Estate, and the Issuer has taken and shall take all actions
necessary to obtain and maintain, in favor of the Trustee, for the benefit of
the Issuer Secured Parties, a first lien on and a first priority, perfected
security interest in the Trust Estate. The Issuer will from time to time prepare
(or shall cause to be prepared), execute and deliver all such supplements and
amendments hereto and all such financing statements, continuation statements,
instruments of further assurance and other instruments, and will take such other
action necessary or advisable to:

                  (i) Grant more effectively all or any portion of the Trust
         Estate;

                  (ii) maintain or preserve the lien and security interest (and
         the priority thereof) in favor of the Trustee for the benefit of the
         Issuer Secured Parties created by this Indenture or carry out more
         effectively the purposes hereof;

                  (iii) perfect, publish notice of or protect the validity of
         any Grant made or to be made by this Indenture;

                  (iv) enforce any of the Collateral;

                  (v) preserve and defend title to the Trust Estate and the
         rights of the Issuer Secured Parties in such Trust Estate against the
         claims of all persons and parties; and

                  (vi) pay all taxes or assessments levied or assessed upon the
         Trust Estate when due.

         The Issuer hereby designates the Trustee its agent and attorney-in-fact
to execute any financing statement, continuation statement or other instrument
required by the Trustee pursuant to this Section.

         The Issuer hereby authorizes the Administrative Agent, the Trustee and
their respective agents to file such financing statements and continuation
statements and take such other actions as the Administrative Agent or the
Trustee may deem advisable in connection with the security interest granted by
the Issuer under the Indenture to the extent permitted by applicable law. Any
such financing statements and continuation statements shall be prepared by the
Issuer.

                                       13
<PAGE>

         SECTION 3.6 OPINIONS AS TO TRUST ESTATE.

         (a) On the Initial Funding Date, the Effective Date, and on the date of
execution of each indenture supplemental hereto, the Issuer shall furnish to the
Trustee and the Administrative Agent an Opinion of Counsel either stating that,
in the opinion of such counsel, such action has been taken with respect to the
recording and filing of this Indenture, any indentures supplemental hereto, and
any other requisite documents, and with respect to the execution and filing of
any financing statements and continuation statements, as are necessary to
perfect and make effective the first priority lien and security interest in
favor of the Trustee, for the benefit of the Issuer Secured Parties, created by
this Indenture and reciting the details of such action, or stating that, in the
opinion of such counsel, no such action is necessary to make such lien and
security interest effective.

         (b) Within 90 days after the beginning of each calendar year, beginning
with the first calendar year beginning more than three months after the
Effective Date, the Issuer shall furnish to the Trustee and the Administrative
Agent an Opinion of Counsel either stating that, in the opinion of such counsel,
such action has been taken with respect to the recording, filing, re-recording
and re-filing of this Indenture, any indentures supplemental hereto and any
other requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as are necessary to maintain
the lien and security interest in the Collateral created by this Indenture and
reciting the details of such action or stating that in the opinion of such
counsel no such action is necessary to maintain such lien and security interest.
Such Opinion of Counsel shall also describe any action necessary (as of the date
of such opinion) to be taken in the following year to maintain the lien and
security interest of this Indenture in the Collateral.

         SECTION 3.7 PERFORMANCE OF OBLIGATIONS.

         (a) The Issuer has not taken, will not take any action and will use its
best efforts not to permit any action to be taken by others that would release
any Person from any of such Person's material covenants or obligations under any
instrument or agreement included in the Trust Estate or that would result in the
amendment, hypothecation, subordination, termination or discharge of or impair
the validity or effectiveness of, any such instrument or agreement, except as
ordered by any bankruptcy or other court or as expressly provided in this
Indenture, the other Basic Documents or such other instrument or agreement.

         (b) The Issuer may contract with other Persons acceptable to the
Administrative Agent to assist it in performing its duties under this Indenture,
and any performance of such duties by a Person identified to the Trustee in an
Officer's Certificate of the Issuer shall be deemed to be action taken by the
Issuer.

         (c) The Issuer has punctually performed and observed, and will
punctually perform and observe all of its obligations and agreements contained
in this Indenture, the other Basic Documents and in the instruments and
agreements included in the Trust Estate, including but not limited to preparing
(or causing to be prepared) and filing (or causing to be filed) all UCC
financing statements and continuation statements required to be filed by the
terms of this Indenture and the Sale and Contribution Agreement in accordance
with and within the time periods provided for herein and therein. Except as
otherwise expressly provided therein, the Issuer has not, and shall not waive,
amend, modify, supplement or terminate any Basic Document or any provision
thereof without the prior written consent of the Administrative Agent and the
Majority Noteholders.

                                       14
<PAGE>

         (d) If a responsible officer of the Issuer shall have written notice or
actual knowledge of the occurrence of an Event of Default, the Issuer shall
promptly notify the Trustee, the Administrative Agent and the Noteholders
thereof in accordance with SECTION 11.4, and shall specify in such notice the
action, if any, the Issuer is taking in respect of such default.

         (e) The Issuer agrees that it shall not have any right to waive, and
shall not waive, timely performance or observance by CPS or the Seller of their
respective duties under the Basic Documents without the prior written consent of
the Administrative Agent and the Majority Noteholders.

         SECTION 3.8 NEGATIVE COVENANTS. So long as any Note is Outstanding or
any amounts are due and owing to the Issuer Secured Parties, the Issuer shall
not:

                  (i) except as expressly permitted by this Indenture or the
         Basic Documents, sell, transfer, exchange or otherwise dispose of any
         of the properties or assets of the Trust Estate, unless directed to do
         so by the Administrative Agent (acting at the written direction of the
         Majority Noteholders) or unless the Administrative Agent (acting at the
         written direction of the Majority Noteholders) has approved such
         disposition; or

                  (ii) claim any credit on, or make any deduction from the
         principal or interest payable in respect of, the Notes (other than
         amounts properly withheld from such payments under the Code) or assert
         any claim against the Administrative Agent or any present or former
         Noteholder by reason of the payment of the taxes levied or assessed
         upon any part of the Trust Estate; or

                  (iii) (A) permit the validity or effectiveness of this
         Indenture to be impaired, or permit the lien in favor of the Trustee
         for the benefit of the Issuer Secured Parties created by this Indenture
         to be amended, hypothecated, subordinated, terminated or discharged, or
         permit any Person to be released from any covenants or obligations
         under this Indenture or any other Basic Document except as may be
         expressly permitted hereby or thereby, (B) permit any lien, charge,
         excise, claim, security interest, mortgage or other encumbrance (other
         than the lien of this Indenture) to be created on or extend to or
         otherwise arise upon or burden the Trust Estate or any part thereof or
         any interest therein or the proceeds thereof, (C) permit the lien of
         this Indenture not to constitute a valid first priority security
         interest in the Trust Estate or (D) amend, modify or fail to comply
         with the provisions any of the Basic Documents or any ABS Issuance
         Agreement relating thereto without the prior written consent of the
         Administrative Agent and the Majority Noteholders; or

                  (iv) in its capacity as holder of a Residual Interest
         Certificate, consent to the taking of any action under any
         Securitization Transaction Document which requires the consent of the
         holder of a Residual Interest Certificate unless it has received the
         prior written consent of the Administrative Agent and the Majority
         Noteholders; or

                                       15
<PAGE>

                  (v) take any action that would result in the Issuer becoming
         taxable as a corporation for United States federal income tax purposes
         or for the purposes of any applicable State tax; or

                  (vi) engage in any business or activity other than as
         permitted by the LLC Agreement; or

                  (vii) incur or assume any indebtedness or guarantee any
         indebtedness of any Person, except for such indebtedness incurred
         pursuant to Section 3.14; or

                  (viii) dissolve or liquidate in whole or in part or merge or
         consolidate with any other Person, other than in compliance with
         Section 3.11; or

                  (ix) unless it has received the prior written consent of the
         Administrative Agent and the Majority Noteholders, the Issuer shall
         not, in its capacity as a holder of any Pledged Residual Interest
         Certificate or otherwise, take any action, fail to take any action,
         give any consent, permit any action, enter into or permit any
         amendment, waiver, supplement or other modification under or in respect
         of any Pledged Residual Interest Certificate or any other Collateral,
         or enter into or permit any amendment, waiver, supplement or other
         modification of any agreement, document or instrument governing the
         rights of any Pledged Residual Interest Certificate, that could
         reasonably be expected to, or would, (i) reduce in any manner the
         amount of, or accelerate or delay the timing of, distributions that are
         required to be made on the Pledged Residual Interest Certificates or
         any other Collateral, (ii) cause or permit amounts on deposit in the
         spread account for any Securitization Transaction pursuant to which a
         Pledged Residual Interest Certificate has been issued or proceeds or
         distributions in respect of any Pledged Residual Interest Certificate
         or any other Collateral to be available to fund deficiencies in any
         other spread account relating to another Securitization Transaction or
         (iii) otherwise have a Material Adverse Effect.

         SECTION 3.9 REPORTING BY CPS. No later than 3:00 p.m. New York City
time on each Determination Date, the Issuer shall cause CPS to deliver (by
telex, facsimile, electronic transmission, first class mail, overnight courier
or personal delivery) to the Issuer, the Administrative Agent and the Trustee a
statement (the "SETTLEMENT DATE STATEMENT") in substantially the form attached
hereto as Exhibit E(1). The Issuer shall deliver, or cause CPS to deliver, to
the Administrative Agent and the Trustee a hard copy of any such Settlement Date
Statement upon request of such Person.

         SECTION 3.10 ANNUAL STATEMENT AS TO COMPLIANCE. The Issuer has
delivered, and will deliver to the Trustee, the Administrative Agent and the
Noteholders, on or before March 31 of each year, beginning March 31, 2008, an
Officer's Certificate, dated as of December 31 of the preceding year, stating,
as to the Authorized Officer signing such Officer's Certificate, that

                  (i) a review of the activities of the Issuer during the
         preceding year (or portion of such year from the Initial Funding Date
         through December 31, 2007) and of performance under this Indenture has
         been made under such Authorized Officer's supervision; and

                  (ii) to the best of such Authorized Officer's knowledge, based
         on such review, the Issuer has complied with all conditions and
         covenants under this Indenture throughout such year (or portion of such
         year from the Initial Funding Date through December 31, 2007) and no
         Event of Default has occurred and is continuing, or, if there has been
         a default in the compliance of any such condition or covenant,
         specifying each such default known to such Authorized Officer and the
         nature and status thereof.

------------------
(1) Citi to provide current form of Exhibit E and to confirm whether any changes
need to be made.

                                       16
<PAGE>

         SECTION 3.11 ISSUER MAY CONSOLIDATE, ETC. ONLY WITH CONSENT. The Issuer
shall not consolidate or merge with or into any other Person, or convey or
transfer all or substantially all of its properties to any Person without the
prior written consent of the Administrative Agent and the Majority Noteholders.

         SECTION 3.12 SUCCESSOR OR TRANSFEREE. (A) Upon any consolidation or
merger of the Issuer with the prior written consent of the Administrative Agent
and the Majority Noteholders in accordance with Section 3.11, the Person formed
by or surviving such consolidation or merger (if other than the Issuer) shall
succeed to, and be substituted for, and may exercise every right and power of,
and be obligated to meet the requirements of the Issuer under this Indenture and
the other Basic Documents with the same effect as if such Person had been named
as the Issuer herein.

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer with the prior written consent of the Administrative Agent and the
Majority Noteholders in accordance with SECTION 3.11, the Issuer will be
released from every covenant and agreement of this Indenture to be observed or
performed on the part of the Issuer with respect to the Notes immediately upon
the delivery of written notice to the Trustee, the Administrative Agent and the
Noteholders stating that the Issuer is to be so released.

         SECTION 3.13 NO OTHER BUSINESS. The Issuer has not engaged, and shall
not engage in, any business other than financing, purchasing, owning, selling
and managing the Residual Interest Assets in the manner contemplated by this
Indenture and the other Basic Documents and activities incidental thereto. After
the Effective Date, the Issuer shall not purchase any additional Residual
Interest Assets.

         SECTION 3.14 NO BORROWING. The Issuer has not issued, incurred,
assumed, guaranteed, or otherwise become liable, and shall not issue, incur,
assume, guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes, and (ii) any other Indebtedness permitted
by or arising under the Basic Documents. The proceeds of the Notes have been
used solely to fund the Issuer's purchase of the Residual Interest Assets and to
pay the Issuer's organizational, transactional and start-up expenses.

         SECTION 3.15 GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES. Except
as contemplated by the Basic Documents, the Issuer has not made, and shall not
make, any loan or advance or credit to, or guarantee (directly or indirectly or
by an instrument having the effect of assuring another's payment or performance
on any obligation or capability of so doing or otherwise), endorse or otherwise
become contingently liable, directly or indirectly, in connection with the
obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or
agree contingently to do so) any stock, obligations, assets or securities of, or
any other interest in, or make any capital contribution to, any other Person.

                                       17
<PAGE>

         SECTION 3.16 CAPITAL EXPENDITURES. The Issuer has not made, and shall
not make, any expenditure (by long-term or operating lease or otherwise) for
capital assets (either realty or personalty).

         SECTION 3.17 COMPLIANCE WITH LAWS. The Issuer has complied, and shall
comply, with the requirements of all Requirements of Law.

         SECTION 3.18 RESTRICTED PAYMENTS. The Issuer has not, directly or
indirectly, and shall not, directly or indirectly, (i) pay any dividend or make
any distribution (by reduction of capital or otherwise), whether in cash,
property, securities or a combination thereof, to any owner of a beneficial
interest in the Issuer or otherwise with respect to any ownership or equity
interest or security in or of the Issuer, (ii) redeem, purchase, retire or
otherwise acquire for value any such ownership or equity interest or security or
(iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, distributions
to the Trustee and to any owner of a beneficial interest in the Issuer as
permitted by, and to the extent funds are available for such purpose from
distributions under this Indenture. The Issuer will not, directly or indirectly,
make payments to or distributions from the Collection Account except in
accordance with this Indenture and the Basic Documents.

         SECTION 3.19 NOTICE OF EVENTS OF DEFAULT. Upon a responsible officer of
the Issuer having notice or actual knowledge thereof, the Issuer agrees to give
each of the Trustee, the Administrative Agent and the Noteholders prompt written
notice of each Event of Default hereunder and each other Default on the part of
the Issuer, the Purchaser or the Seller of its obligations under any Basic
Document.

         SECTION 3.20 FURTHER INSTRUMENTS AND ACTS. Upon request of the Trustee,
the Administrative Agent or the Majority Noteholders, the Issuer will execute
and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this
Indenture.

         SECTION 3.21 INCOME TAX CHARACTERIZATION.It is the intent of the Issuer
and the Noteholders that, for Federal, state and local income and franchise tax
purposes, the Notes will evidence indebtedness of the Issuer secured by the
Collateral. Each Noteholder, by its acceptance of a Note, agrees to treat such
Note for Federal, state and local income and franchise tax purposes as
indebtedness of the Issuer.

         SECTION 3.22 SEPARATE EXISTENCE OF THE ISSUER. During the term of the
Indenture, the Issuer shall observe and comply with the applicable legal
requirements for the recognition of the Issuer as a legal entity separate and
apart from its Affiliates, including without limitation, those requirements set
forth in Section 9(b) of the Issuer's Limited Liability Company Agreement.

         SECTION 3.23 AMENDMENT OF THE ISSUER'S ORGANIZATIONAL DOCUMENTS. During
the term of the Indenture, the Issuer shall not amend its Limited Liability
Company Agreement except in accordance with the provisions thereof and with the
prior written consent of the Administrative Agent.

         SECTION 3.24 OTHER AGREEMENTS. The Issuer shall not enter into any
agreement other than the Basic Documents without the prior written consent of
the Administrative Agent and the Majority Noteholders. The Issuer shall not
enter into any agreement that does not contain non-petition or limited recourse
language acceptable to the Administrative Agent with respect to the Issuer.

                                       18
<PAGE>

         SECTION 3.25 RULE 144A INFORMATION. At any time when the Issuer is not
subject to Section 13 or 15(d) of the Securities Exchange Act of 1934, as
amended, upon the request of a Noteholder, the Issuer shall promptly furnish to
such Noteholder or to a prospective purchaser of a Note designated by such
Noteholder, as the case may be, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act ("Rule 144A Information")
in order to permit compliance by such Noteholder with Rule 144A in connection
with the resale of a Note by such Noteholder; provided, however, that the Issuer
shall not be required to furnish Rule 144A Information in connection with any
request made on or after the date which is three years from the later of (i) the
most recent renewal of the Term pursuant to Section 2.02 of the Note Purchase
Agreement, (ii) the date such Note (or any predecessor Note) was acquired from
the Issuer or (iii) the date such Note (or any predecessor Note) was last
acquired from an "affiliate" of the Issuer within the meaning of Rule 144 under
the Securities Act; and provided further that the Issuer shall not be required
to furnish such information at any time to a prospective purchaser located
outside of the United States who is not a "United States Person" within the
meaning of Regulation S under the Securities Act if such Note may then be sold
to such prospective purchaser in accordance with Rule 904 under the Securities
Act (or any successor provision thereto).

         SECTION 3.26 CHANGE OF CONTROL. CPS has been and shall at all times be
the legal and beneficial owner of all of the issued and outstanding membership
interests of the Issuer.

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE
                           --------------------------

         SECTION 4.1 SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of the Noteholders to receive
payments of principal thereof and interest thereon and the rights of the
Administrative Agent to receive payments in respect of amounts owed by the
Issuer to the Administrative Agent under the Basic Documents, (iv) Sections 3.3,
3.4, 3.5, 3.6, 3.8, 3.11, 3.12, 3.18, 3.19, 3.20, 3.22, 3.23 and 11.17, (v) the
rights, obligations and immunities of the Trustee hereunder (including the
rights of the Trustee under Section 6.7 and the obligations of the Trustee under
Section 4.2) and (vi) the rights of the Issuer Secured Parties as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to all
or any of them, and the Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

         (a) the Notes theretofore authenticated and delivered (other than (i)
Notes that have been destroyed, lost or stolen and that have been replaced or
paid as provided in Section 2.6 and (ii) Notes for which payment of money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.3) have been delivered to the Trustee for cancellation;

         (b) the Issuer has paid or caused to be paid all Issuer Secured
Obligations; and

         (c) the Issuer has delivered to the Trustee, the Administrative Agent
and the Noteholders an Officer's Certificate meeting the applicable requirements
of Section 11.1(a) and stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture have been complied
with.

                                       19
<PAGE>

         SECTION 4.2 APPLICATION OF TRUST MONEY. All moneys deposited with the
Trustee pursuant to Section 4.1 or Section 4.3 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through the Note Paying Agent, as
the Trustee may determine, to the Noteholders and the Administrative Agent for
the payment or redemption of which such moneys have been deposited with the
Trustee, of all sums due and to become due thereon for principal and interest
(in the case of the Noteholders) and all sums due and payable by the Issuer
under the Basic Documents (in the case of the Administrative Agent); but such
moneys need not be segregated from other funds except to the extent required
herein or in the other Basic Documents or required by law. Any funds remaining
with the Trustee or on deposit in the Collection Account following the repayment
in full of the Notes and the other Issuer Secured Obligations, the payment in
full of all other amounts owed to the Noteholders and all amounts owed by the
Issuer to the Administrative Agent and the Trustee under the Basic Documents,
and the satisfaction and discharge of this Indenture, shall be remitted to the
Issuer.

         SECTION 4.3 REPAYMENT OF MONEYS HELD BY NOTE PAYING AGENT. In
connection with the satisfaction and discharge of this Indenture with respect to
the Notes, all moneys then held by any Note Paying Agent other than the Trustee
under the provisions of this Indenture with respect to such Notes shall, upon
demand of the Issuer, be remitted to the Trustee to be held and applied
according to Section 4.2 and thereupon such Note Paying Agent shall be released
from all further liability with respect to such moneys.

                                    ARTICLE V
                                    REMEDIES
                                    --------

         SECTION 5.1 EVENTS OF DEFAULT. "Event of Default" wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

         (a) (i) Subject to Section 5.1(b), any payment by or on behalf of the
Issuer, CPS or any Affiliate shall fail to be made to the Administrative Agent
or the Noteholders when due of principal, including any Collateral Deficiency,
or interest on the Notes in each case within one (1) Business Day after its due
date; PROVIDED, that the failure to pay principal in connection with a
Collateral Deficiency shall only be subject to the applicable grace period set
forth in Section 3.07 of the Note Purchase Agreement and shall not be subject to
any additional grace period under this Section 5.1(a), or (ii) any payment by or
on behalf of the Issuer, CPS or any Affiliate of any other amount in addition to
(i) above shall fail to be made to the Noteholders when due, within fifteen (15)
days after its due date;

         (b) as of the close of the Scheduled Maturity Date with respect to each
Class of Notes, there are any amounts due and owing on the applicable Class of
Notes;

         (c) The Issuer, CPS or any Affiliate shall fail to perform or observe
any term or covenant of this Indenture or any other Basic Document (other than
the financial covenants set forth in Section 7.01(u) of the Note Purchase
Agreement) to which it is a party, which failure materially and adversely
affects the Administrative Agent or the Noteholders and is (i) curable by
payment of money and continues unremedied for a period of five (5) Business Days
from the earlier of knowledge of, or written notice to, the Issuer, CPS or any
Affiliate, (ii) curable by means other than payment of money and continues
unremedied for a period of fifteen (15) Business Days from the earlier of
knowledge of, or written notice to, the Issuer, CPS or any Affiliate; or (iii)
not curable;

                                       20
<PAGE>

         (d) Any representation or warranty made or deemed to be made by the
Issuer, CPS or any Affiliate or any of their respective officers, under or in
connection with this Indenture or any other Basic Document, any Settlement Date
Statement or other information or report delivered pursuant hereto or any other
Basic Document shall prove to have been false or incorrect in any respect when
made which failure materially and adversely affects the Administrative Agent or
the Noteholders and is (i) curable by payment of money and continues unremedied
for a period of five (5) Business Days from the earlier of knowledge of, or
written notice to, the Issuer, CPS or any Affiliate, (ii) curable by means other
than payment of money and continues unremedied for a period of fifteen (15)
Business Days from the earlier of knowledge of, or written notice to, the
Issuer, CPS or any Affiliate; or (iii) not curable;

         (e) The Issuer, CPS or any Specified Affiliate shall fail to pay any
money due under any other agreement, note, indenture or instrument evidencing,
securing, guaranteeing or otherwise relating to indebtedness of the Issuer, CPS
or such Specified Affiliate, which failure to pay constitutes an event of
default under any such agreement, note, indenture or instrument or constitutes a
default thereunder and such default (i) results in the acceleration of any debt
owed by the Issuer, CPS or such Specified Affiliate, and (ii) continues
unremedied for a period of three (3) Business Days after the cure period for the
related indebtedness; or the Issuer, CPS or any Specified Affiliate shall
otherwise fail to perform or observe any term, covenant, agreement or
representation and warranty under any such other agreement, note, indenture or
instrument, which failure constitutes an event of default under any such
agreement, note, indenture or instrument or constitutes a default thereunder and
such default shall result in the acceleration of such indebtedness; or any other
event under any such agreement or instrument shall occur or condition shall
exist if the effect of such event or condition is to accelerate the maturity of
such indebtedness; provided that, if such indebtedness is solely indebtedness of
CPS (and not in whole or in part indebtedness of the Issuer or any Specified
Affiliate), such accelerated indebtedness must be in an aggregate amount of at
least $1,000,000 in order for an event described in this clause (e) to
constitute an Event of Default;

         (f) (i)(a) The Collateral or any other material assets of the Issuer,
CPS or any Specified Affiliate are attached, seized, levied upon or subjected to
a writ or distress warrant, or come within the possession of any receiver,
trustee, custodian or assignee in an amount less than $100,000, for the benefit
of the Issuer, CPS or any Specified Affiliate and the same is not paid,
dissolved or dismissed within sixty (60) days thereafter or (b) after service on
CPS of notice thereof, an application is made by any Person other than the
Issuer, CPS or any Specified Affiliate for the appointment of a receiver,
trustee, or custodian for the Collateral or a material portion of the assets of
the Issuer, CPS or any Specified Affiliate in an amount less than $100,000 and
the same is not dismissed within sixty (60) days after the application thereof;
(ii) (a) the Collateral or any other material assets of the Issuer, CPS or any
Specified Affiliate are attached, seized, levied upon or subjected to a writ or
distress warrant, or come within the possession of any receiver, trustee,
custodian or assignee in an amount greater than $100,000 for the benefit of the
Issuer, CPS or any Specified Affiliate and the same is not paid, dissolved or

                                       21
<PAGE>

dismissed within thirty (30) days thereafter or (b) after service on CPS of
notice thereof, an application is made by any Person other than the Issuer, CPS
or any Specified Affiliate for the appointment of a receiver, trustee, or
custodian for the Collateral or a material portion of the assets of the Issuer,
CPS or any Specified Affiliate in an amount greater than $100,000 and the same
is not dismissed within thirty (30) days after the application thereof; or (iii)
the Issuer, CPS or any Specified Affiliate shall have concealed, removed or
permitted to be concealed or removed any portion of its property with intent to
hinder, delay or defraud its creditors or made or suffered a transfer of any of
its property which is fraudulent under any bankruptcy, fraudulent conveyance or
other similar law;

         (g) An application is made by the Issuer, CPS or any Specified
Affiliate for the appointment of a receiver, trustee or custodian for the
Collateral or any other material assets of the Issuer, CPS or any Specified
Affiliate; a petition under any section or chapter of the Bankruptcy Code or
federal or state law or regulation shall be filed by the Issuer, CPS or any
Specified Affiliate; the Issuer, CPS or any Specified Affiliate shall make an
assignment for the benefit of its creditors; any case or proceeding shall be
filed by the Issuer, CPS or any Specified Affiliate for its dissolution,
liquidation, or termination; or the Issuer or CPS ceases to conduct its
business;

         (h) the Issuer, CPS or any Specified Affiliate is enjoined, restrained
or prevented by court order from conducting all or any material part of its
business affairs, or a petition under any section or chapter of the Bankruptcy
Code or any similar federal or state law or regulation is filed against the
Issuer, CPS or any Specified Affiliate or any case or proceeding is filed
against the Issuer, CPS or any Specified Affiliate for its dissolution or
liquidation, and such injunction, restraint, petition, case or proceeding is not
dismissed within sixty (60) days after the entry of filing thereof;

         (i) the Issuer, CPS or any Specified Affiliate admits in writing to its
inability to pay its debts as they mature;

         (j) the Trustee, for the benefit of the Issuer Secured Parties, shall
for any reason cease to have a first priority perfected security interest in any
of the Pledged Residual Interest Certificates or in any portion of the
Collateral, free and clear of all Liens;

         (k) the Issuer becoming taxable as an association (or publicly traded
partnership) taxable as a corporation for federal or state income tax purposes;

         (l) the Administrative Agent, in its reasonable, good faith judgment,
has cause to believe that there has been a Material Adverse Effect or a Material
Adverse Change;

         (m) (i) the Issuer, CPS or any Affiliate shall have at any time during
the Term been in default or termination under any servicing agreements which
resulted in termination of servicing with respect to more than one (1) Eligible
Committed Securitization, or (ii) the Issuer, CPS or any Affiliate shall have at
any time during the Term resigned as servicer on any outstanding Securitization

                                       22
<PAGE>

Transaction in its total managed portfolio, other than any Securitization
Transaction sponsored by SeaWest Financial Corporation or its Affiliates;

         (n) without the prior written consent of the Administrative Agent and
the Majority Noteholders, CPS, the Issuer or any other Affiliate of CPS takes
any action, fails to take any action, gives any consent, permits any action,
enters into or permits any amendment, waiver, supplement or other modification
under or in respect of any Pledged Residual Interest Certificate or any other
Collateral, or enters into or permits any amendment, waiver, supplement or other
modification of any agreement, document or instrument governing the rights of
any Pledged Residual Interest Certificate, that could reasonably be expected to,
or would, (i) reduce in any manner the amount of, or accelerate or delay the
timing of, distributions that are required to be made on the Pledged Residual
Interest Certificates or any other Collateral, (ii) cause or permit amounts on
deposit in the spread account for any Securitization Transaction pursuant to
which a Pledged Residual Interest Certificate has been issued or proceeds or
distributions in respect of any Pledged Residual Interest Certificate or any
other Collateral to be available to fund deficiencies in any other spread
account relating to another Securitization Transaction, (iii) otherwise
materially adversely affect the Collateral, the Administrative Agent, the Note
Purchaser or the Noteholders or (iv) otherwise have a Material Adverse Effect;

         (o) The Issuer, CPS or any Affiliate becomes an "investment company" or
company "controlled" by an investment company within the meaning of the
Investment Company Act of 1940, as amended;

         (p) Any Change of Control shall occur with respect to the Issuer, CPS
or any Specified Affiliate unless the Administrative Agent and the Majority
Noteholders shall have expressly consented to such Change of Control in writing
or unless the Issuer Secured Obligations shall have been indefeasibly repaid in
full and the Basic Documents have been terminated;

         (q) A final, nonappealable judgment by any competent court in the
United States of America for the payment of money in an amount in excess of
$1,000,000 shall be rendered against the Issuer, CPS or any Specified Affiliate
and the same remains undischarged and unstayed for a period of thirty (30) days
after the entry thereof;

         (r) The Issuer, CPS or any Affiliate shall pay an amount in excess of
the applicable Litigation Threshold in connection with the settlement of any
action filed in any competent court in the United States of America;

         (s) Any Basic Document shall be terminated or cease to be in full force
and effect, or the enforceability thereof shall be (A) reasonably contested by
the Administrative Agent and the Majority Noteholders or its respective
assignees, (B) contested by any other party thereto, or (C) contested by an
indenture trustee on behalf of unsecured noteholders of CPS;

                                       23
<PAGE>

         (t) The Issuer, CPS or any Affiliate shall fail to pay to
Administrative Agent, within 30 days following the presentment of invoices, any
and all fees, costs or expenses which the Administrative Agent pays to a bank or
other similar institution arising out of or in connection with the return of
payments from Issuer, CPS or any Affiliate deposited for collection by
Administrative Agent; or

         (u) CPS shall fail to comply with the financial covenants set forth in
Section 7.01(u) of the Note Purchase Agreement.

         SECTION 5.2 RIGHTS UPON EVENT OF DEFAULT.

         (a) If an Event of Default shall have occurred and be continuing, the
Trustee may, and at the direction of the Administrative Agent (acting upon the
written direction of the Majority Noteholders, which direction shall be deemed
given automatically upon the occurrence of an Event of Default specified in
paragraph (g), (h) or (i) of Section 5.1) shall declare immediately due and
payable all principal, interest (which shall be calculated for these purposes
using the Default Applicable Margin) and other Issuer Secured Obligations
payable hereunder and under the Notes by the Issuer that would otherwise be due
after the date specified in the notice (or the date such notice is deemed
given), whereupon all those amounts shall become immediately due and payable,
all without further diligence, presentment, demand of payment, protest or notice
of any kind, all of which are expressly waived by the Issuer. In addition, if an
Event of Default shall have occurred and be continuing, the Trustee may, and at
the direction of the Administrative Agent (acting upon the written direction of
the Majority Noteholders) shall, exercise any of the remedies specified in
SECTION 5.4.

         (b) At any time after such declaration of acceleration of maturity has
been made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article V provided, the
Administrative Agent (acting upon the written direction of the Majority
Noteholders) may, by written notice to the Issuer and the Trustee, rescind and
annul such declaration and its consequences if the Issuer has paid or deposited
with the Trustee a sum sufficient to pay:

                  (i) all payments of principal of and interest (calculated for
         these purposes using the Default Applicable Margin) on the Notes, all
         amounts due the Administrative Agent and the Noteholders from the
         Issuer under the Basic Documents, and all other amounts that would then
         be due from the Issuer hereunder, upon the Notes or under the Basic
         Documents if the Event of Default giving rise to such acceleration had
         not occurred; and

                  (ii) all sums paid or advanced by the Trustee hereunder and
         the reasonable compensation, expenses, disbursements and advances of
         the Trustee and its agents and counsel; and

                  (iii) all Events of Default, other than the nonpayment of the
         principal of the Notes that has become due solely by such acceleration,
         have been cured or waived as provided in Section 5.14.

         No such rescission shall affect any subsequent default or impair any
right consequent thereto.

                                       24
<PAGE>

         SECTION 5.3 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE.

         (a) The Issuer covenants that if (i) default is made in the payment of
any interest on, or principal of, the Notes, or any amount due from the Issuer
to the Administrative Agent or any Noteholder under the Basic Documents, when
the same becomes due and payable, the Issuer will, upon demand of the Trustee,
pay to it, for the benefit of the Noteholders and the Administrative Agent, as
applicable, the whole amount then due and payable on the Notes for principal and
interest, with interest upon the overdue principal, and, to the extent payment
at such rate of interest shall be legally enforceable, upon overdue installments
of interest, at the Note Interest Rate, all amounts due and owing by the Issuer
under the Basic Documents and, in each case, in addition thereto such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee and its agents and counsel.

         (b) If an Event of Default occurs and is continuing, the Trustee may in
its discretion subject to the prior written consent of the Administrative Agent
(acting upon the written direction of the Majority Noteholders) and shall, at
the direction of the Administrative Agent (acting upon the written direction of
the Majority Noteholders), proceed to protect and enforce its rights and the
rights of the Administrative Agent and the Noteholders by such appropriate
Proceedings as the Trustee, the Administrative Agent (acting upon the written
direction of the Majority Noteholders) shall deem most effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture, any other Basic Document or in aid of the exercise
of any power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Trustee by this Indenture, any other Basic
Document or by law.

         (c) [Reserved].

         (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Estate, proceedings under Title 11 of the United States Code or any
other applicable Federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Trustee, irrespective of whether the principal of the
Notes shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:

                  (i) to file and prove a claim or claims for the whole amount
         of principal and interest owing and unpaid in respect of the Notes and
         the whole amount then due to the Administrative Agent or any Noteholder
         by the Issuer under the Basic Documents and to file such other papers
         or documents as may be necessary or advisable in order to have the
         claims of the Trustee (including any claim for reasonable compensation
         to the Trustee and each predecessor Trustee, and their respective
         agents, attorneys and counsel, and for reimbursement of all expenses
         and liabilities incurred, and all advances made, by the Trustee and
         each predecessor Trustee, except as a result of negligence, bad faith
         or willful misconduct) and of the Administrative Agent and the
         Noteholders allowed in such proceedings;

                                       25
<PAGE>

                  (ii) unless prohibited by applicable law and regulations, to
         vote on behalf of the Noteholders and the Administrative Agent in any
         election of a trustee, a standby trustee or person performing similar
         functions in any such proceedings;

                  (iii) to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute all amounts
         received with respect to the claims of the Noteholders, the
         Administrative Agent and of the Trustee on their behalf; and

                  (iv) to file such proofs of claim and other papers or
         documents as may be necessary or advisable in order to have the claims
         of the Trustee, the Administrative Agent or the Noteholders allowed in
         any judicial proceedings relative to the Issuer, its creditors and its
         property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such proceeding is hereby authorized by the Noteholders and the
Administrative Agent to make payments to the Trustee, and, in the event that the
Trustee shall consent to the making of payments directly to the Noteholders or
the Administrative Agent, to pay to the Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Trustee, each predecessor
Trustee and their respective agents, attorneys and counsel, and all other
expenses and liabilities incurred, and all advances made, by the Trustee and
each predecessor Trustee except as a result of negligence or bad faith.

         (e) Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or vote for or accept or adopt on behalf of the
Noteholders or the Administrative Agent any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of the Noteholders
or the Administrative Agent or to authorize the Trustee to vote in respect of
the claim of the Noteholders or the Administrative Agent in any such proceeding
except, as aforesaid, to vote for the election of a trustee in bankruptcy or
similar person.

         (f) All rights of action and of asserting claims under this Indenture,
any other Basic Document or under the Notes, may be enforced by the Trustee
without the possession of the Notes or the production thereof in any trial or
other proceedings relative thereto, and any such action or proceedings
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Trustee, each predecessor
Trustee and their respective agents and attorneys, shall be for the benefit of
the Noteholders and the Administrative Agent.

         (g) In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture or any other
Basic Document), the Trustee shall be held to represent the Administrative Agent
and the Noteholders, and it shall not be necessary to make the Administrative
Agent or the Noteholders a party to any such proceedings. Notwithstanding the
foregoing, nothing contained in this Indenture shall be deemed to prohibit the
Administrative Agent from representing itself in any such action or proceeding.

                                       26
<PAGE>

         SECTION 5.4 REMEDIES. If an Event of Default shall have occurred and be
continuing, the Administrative Agent (acting upon the written direction of the
Majority Noteholders) may do one or more of the following (subject to Section
5.5):

         (a) institute or direct the Trustee to institute Proceedings in its own
name and as trustee of an express trust for the collection of all amounts then
payable by the Issuer under any Basic Document, on the Notes or under this
Indenture with respect thereto, whether by declaration or otherwise, enforce any
judgment obtained, and collect from the Issuer and any other obligor upon the
Notes moneys adjudged due;

         (b) institute or direct the Trustee to institute Proceedings from time
to time for the complete or partial foreclosure of this Indenture with respect
to the Trust Estate;

         (c) exercise or direct the Trustee to exercise any remedies of a
secured party under the UCC and take any other appropriate action to protect and
enforce the rights and remedies of the Trustee and the Issuer Secured Parties;
and

         (d) sell or direct the Trustee to sell the Trust Estate or any portion
thereof or rights or interest therein, at one or more public or private sales
(including, without limitation, the sale of the Collateral in connection with a
securitization thereof) called and conducted in any manner permitted by law.

         SECTION 5.5 OPTIONAL PRESERVATION OF THE TRUST ESTATE. If the Notes
have been declared to be due and payable under Section 5.2 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Trustee may, but need not, elect to maintain possession of the
Trust Estate with the prior written consent of the Administrative Agent (acting
upon the written direction of the Majority Noteholders). It is the desire of the
parties hereto and the Noteholders that there be at all times sufficient funds
for the payment of principal of and interest on the Notes, and the Trustee shall
take such desire into account when determining whether or not to maintain
possession of the Trust Estate. In determining whether to maintain possession of
the Trust Estate, the Trustee may, but need not, obtain and rely upon an opinion
of an Independent investment banking or accounting firm of national reputation
as to the feasibility of such proposed action and as to the sufficiency of the
Trust Estate for such purpose.

         SECTION 5.6 DEFICIENCY. The Issuer shall remain liable for any
deficiency if the Proceeds of any sale or other disposition of the Collateral
are insufficient to pay in full all Issuer Secured Obligations, including,
without limitation, the reasonable fees and disbursements of any attorneys
employed by the Administrative Agent, the Trustee or the Noteholders to collect
such deficiency.

                                       27
<PAGE>

         SECTION 5.7 PRIORITIES.

         (a) Following the occurrence of an Event of Default that has resulted
in an acceleration of the Notes pursuant to Section 5.2 hereof, if the Trustee
collects any money or property pursuant to Article V of this Indenture, it shall
pay out such money or property in the following order of priority, subject to
Section 8.3(a) hereof:

                  (i) FIRST: to the Trustee for amounts due under Section 6.7;

                  (ii) SECOND: to the Administrative Agent for amounts due under
         the Basic Documents;

                  (iii) THIRD: to the Note Purchaser, any amounts then due and
         owing to the Note Purchaser under the Basic Documents;

                  (iv) FOURTH: to the Class A-1 Noteholders and the Class A-2
         Noteholders on a PARI PASSU basis for amounts due and unpaid on the
         Class A-1 Notes and the Class A-2 Notes, respectively, in respect of
         interest (including any premium), according to the amounts due and
         payable on the Class A-1 Notes and the Class A-2 Notes, as applicable,
         in respect of interest (including any premium);

                  (v) FIFTH: to the Class A-1 Noteholders for amounts due and
         unpaid on the Class A-1 Notes in respect of principal, ratably, without
         preference or priority of any kind, according to the amounts due and
         payable on the Class A-1 Notes in respect of principal (inclusive of
         any Prepayment Fees), until the outstanding principal amount of the
         Class A-1 Notes is reduced to zero;

                  (vi) SIXTH: to the Class A-2 Noteholders for amounts due and
         unpaid on the Class A-2 Notes in respect of principal, ratably, without
         preference or priority of any kind, according to the amounts due and
         payable on the Class A-2 Notes in respect of principal (inclusive of
         any Prepayment Fees), until the outstanding principal amount of the
         Class A-2 Notes is reduced to zero;

                  (vii) SEVENTH: any excess amounts remaining after making the
         payments described in clauses FIRST through SIXTH above, to be applied
         pursuant to SECTION 8.5 of this Indenture to the extent that any
         amounts payable thereunder have not been previously paid pursuant to
         clauses FIRST through SIXTH above.

         (b) The Trustee may fix a record date and Settlement Date for any
payment to the Administrative Agent and the Noteholders pursuant to this
Section. At least 15 days before such record date the Trustee shall mail to the
Issuer, the Administrative Agent and each Noteholder a notice that states such
record date, the Settlement Date and the amount to be paid.

         SECTION 5.8 LIMITATION OF SUITS. Unless the Notes shall be held by the
Administrative Agent or an Affiliate thereof, no Holder of a Note shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

         (a) the Holder has previously given written notice to the Trustee of a
continuing Event of Default;

         (b) the Majority Noteholders have made a written request to the Trustee
to institute such proceeding in respect of such Event of Default in its own name
as Trustee hereunder;

         (c) the Majority Noteholders have offered to the Trustee indemnity
reasonably satisfactory to it against the costs, expenses and liabilities to be
incurred in complying with such request; and

                                       28
<PAGE>

         (d) the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity has failed to institute such proceedings;

it being understood and intended that no Holder of a Note shall have any right
in any manner whatever by virtue of, or by availing of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other Holder of the
Notes or to obtain or to seek to obtain priority or preference over any other
Holder or to enforce any right under this Indenture, except in the manner herein
provided and it being understood that if a Note is held by the Administrative
Agent or an Affiliate thereof, the Holder may directly institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy.

         SECTION 5.9 UNCONDITIONAL RIGHTS OF THE NOTEHOLDERS TO RECEIVE
PRINCIPAL AND INTEREST. Notwithstanding any other provisions of this Indenture,
(i) each Noteholder shall have the right, which is absolute and unconditional,
to receive payments of principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture, (ii) the Administrative Agent shall have the right, which is absolute
and unconditional, to receive payment of all amounts owed to it by the Issuer
under the Basic Documents when the same shall become due, and, in each case, to
institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of the Administrative Agent or the Majority
Noteholders, as applicable.

         SECTION 5.10 RESTORATION OF RIGHTS AND REMEDIES. If the Administrative
Agent or a Noteholder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Trustee, the
Administrative Agent or to such Noteholder, then and in every such case the
Issuer, the Trustee, the Administrative Agent and the Noteholders shall, subject
to any determination in such Proceeding, be restored severally and respectively
to their former positions hereunder, and thereafter all rights and remedies of
the Trustee, the Administrative Agent and the Noteholder shall continue as
though no such proceeding had been instituted.

         SECTION 5.11 RIGHTS AND REMEDIES CUMULATIVE. No right or remedy herein
conferred upon or reserved to the Administrative Agent or the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

                                       29
<PAGE>

         SECTION 5.12 DELAY OR OMISSION NOT A WAIVER. No delay or omission of
the Administrative Agent or the Noteholders to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Trustee, the Administrative Agent or the Noteholders may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee, the
Administrative Agent or the Noteholders, as the case may be.

         SECTION 5.13 [RESERVED].

         SECTION 5.14 WAIVER OF PAST DEFAULTS.

         (a) Prior to the declaration of the acceleration of the maturity of the
Notes as provided in SECTION 5.2, the Administrative Agent (acting upon the
direction of the Majority Noteholders) may waive any past Default or Event of
Default and its consequences except a Default or Event of Default (i) in payment
of principal of or interest on the Notes or (ii) in respect of a covenant or
provision hereof which cannot be modified or amended without the consent of the
Administrative Agent and all of the Noteholders. In the case of any such waiver,
the Issuer, the Trustee, the Administrative Agent and the Noteholders shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereto.

         (b) Upon any such waiver, such Default or Event of Default shall cease
to exist and be deemed to have been cured and not to have occurred, and any
Event of Default arising therefrom shall be deemed to have been cured and not to
have occurred, for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or Event of Default or impair any
right consequent thereto.

         SECTION 5.15 UNDERTAKING FOR COSTS. Each of the Issuer, the Trustee and
the Administrative Agent agrees, and each Noteholder by its acceptance of a Note
shall be deemed to have agreed, that any court may in its discretion require, in
any suit for the enforcement of any right or remedy under this Indenture, or in
any suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys' fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to (a) any suit instituted by the Trustee, (b) any suit
instituted by the Administrative Agent or Noteholders holding in the aggregate
more than 10% of Percentage Interests of any class of Notes or (c) any suit
instituted by the Noteholders for the enforcement of the payment of principal of
or interest on the Notes on or after the respective due dates expressed in the
Notes and in this Indenture.

         SECTION 5.16 WAIVER OF STAY OR EXTENSION LAWS. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power and any right of the Issuer to take
such action shall be suspended.

                                       30
<PAGE>

         SECTION 5.17 SALE OF TRUST ESTATE.

         (a) To the extent permitted by applicable law, the Trustee shall not in
any private sale sell to a third party the Trust Estate, or any portion thereof
unless,

                  (i) the Administrative Agent (acting at the direction of the
         Majority Noteholders) consents to or direct the Trustee in writing to
         make such sale; or

                  (ii) the proceeds of such sale would be not less than the sum
         of (x) all amounts due on the entire unpaid principal amount of the
         Notes and interest due or to become due thereon in accordance with
         Section 5.7 hereof on the Settlement Date next succeeding the date of
         such sale and (y) all amounts due the Administrative Agent, the Trustee
         and the Noteholders from the Issuer under the Basic Documents.

         (b) For any public sale of the Trust Estate, the Trustee shall have
provided the Administrative Agent and the Noteholders with notice of such sale
at least two weeks in advance of such sale which notice shall specify the date,
time and location of such sale.

         (c) In connection with a sale of all or any portion of the Trust
Estate:

                  (i) the Administrative Agent or the Noteholders may bid for
         and purchase the property offered for sale, and may hold, retain,
         possess and dispose of such property, without further accountability,
         and (x) the Noteholders may, in paying the purchase money therefor,
         deliver in lieu of cash any Outstanding Note or claims for interest
         thereon for credit in the amount that shall, upon distribution of the
         net proceeds of such sale, be payable thereon, and the Note so
         delivered shall be cancelled and extinguished except that, in case the
         amounts so payable thereon shall be less than the amount due thereon,
         such Notes shall be returned to the Noteholders after being
         appropriately stamped to show such partial payment and (y) the
         Administrative Agent may, in paying the purchase money therefor,
         set-off against any amount owed to it by the Issuer under the Basic
         Documents;

                  (ii) the Trustee shall execute and deliver an appropriate
         instrument of conveyance transferring its interest in any portion of
         the Trust Estate in connection with a sale thereof; and

                  (iii) the Trustee is hereby irrevocably appointed the agent
         and attorney-in-fact of the Issuer to transfer and convey its interest
         in any portion of the Trust Estate in connection with a sale thereof,
         and to take all action necessary to effect such sale.

         (d) The method, manner, time, place and terms of any sale of all or any
portion of the Trust Estate shall be commercially reasonable.

                                       31
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                                   ARTICLE VI
                                   THE TRUSTEE
                                   -----------

         SECTION 6.1 DUTIES OF TRUSTEE.

         (a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise the rights and powers vested in it by this Indenture and the
other Basic Documents and use the same degree of care and skill in their
exercise as a prudent person would exercise or use under the circumstances in
the conduct of such person's own affairs.

         (b) Except during the continuance of an Event of Default:

                  (i) the Trustee undertakes to perform such duties and only
         such duties as are specifically set forth in this Indenture and each of
         the other Basic Documents to which it is a party and no implied
         covenants or obligations shall be read into this Indenture against the
         Trustee; and

                  (ii) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture; however, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform on their face to the
         requirements of this Indenture.

         (c) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                  (i) this paragraph does not limit the effect of paragraph (b)
         of this Section; and

                  (ii) the Trustee shall not be liable for any error of judgment
         made in good faith by a Responsible Officer unless it is proved that
         the Trustee was negligent in ascertaining the pertinent facts.

         (d) The Trustee shall not be liable for interest on any money received
by it except as the Trustee may agree in writing with the Issuer.

         (e) Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law or the terms of this Indenture.

         (f) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur financial liability in the performance
of any of its duties hereunder or in the exercise of any of its rights or
powers, if it shall have reasonable grounds to believe that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

         (g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

         (h) The Trustee shall permit any representative of the Administrative
Agent or the Noteholders, during the Trustee's normal business hours, to examine
all books of account, records, reports and other papers of the Trustee relating
to the Notes and the transactions contemplated by the Basic Documents, to make
copies and extracts therefrom and to discuss the Trustee's affairs and actions,
as such affairs and actions relate to the Trustee's duties with respect to the
Notes and the Administrative Agent, with the Trustee's officers and employees
responsible for carrying out the Trustee's duties with respect to the Notes and
the Administrative Agent.

         (i) The Trustee shall, and hereby agrees that it will, perform all of
the obligations and duties required of it under the other Basic Documents.

                                       32
<PAGE>

         SECTION 6.2 RIGHTS OF TRUSTEE. Subject to Sections 6.1 and this Section
6.2, the Trustee shall be protected and shall incur no liability to the Issuer,
the Administrative Agent or the Noteholders in relying upon the accuracy, acting
in reliance upon the contents, and assuming the genuineness of any notice,
demand, certificate, signature, instrument or other document reasonably believed
by the Trustee to be genuine and to have been duly executed by the appropriate
signatory, and, except to the extent the Trustee has actual knowledge to the
contrary or as required pursuant to Section 6.1 the Trustee shall not be
required to make any independent investigation with respect thereto.

         (a) Before the Trustee acts or refrains from acting, it may require an
Officer's Certificate. Subject to SECTION 6.1(c), the Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on the
Officer's Certificate.

         (b) The Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys or a custodian or nominee, and the Trustee shall not be responsible
for any misconduct or negligence on the part of any such agent, attorney,
custodian or nominee appointed with due care by it hereunder.

         (c) The Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers; provided, however, that the Trustee's conduct does not constitute
willful misconduct, negligence or bad faith.

         (d) The Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes
shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such counsel.

         (e) The Trustee shall be under no obligation to institute, conduct or
defend any litigation under this Indenture or in relation to this Indenture, at
the request, order or direction of the Administrative Agent or the Noteholders,
pursuant to the provisions of this Indenture, unless the Administrative Agent
and/or the Noteholders, as applicable, shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that may be incurred therein or thereby; provided, however, that the Trustee
shall, upon the occurrence of an Event of Default (that has not been cured),
exercise the rights and powers vested in it by this Indenture in accordance with
Section 6.1.

         (f) The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper
or document, unless requested in writing to do so by the Administrative Agent or
the Majority Noteholders; provided, however, that if the payment within a
reasonable time to the Trustee of the costs, expenses or liabilities likely to
be incurred by it in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it by
the terms of this Indenture, the Trustee may require reasonable indemnity
against such cost, expense or liability as a condition to so proceeding; the
reasonable expense of every such examination shall be paid by the Person making
such request, or, if paid by the Trustee, shall be reimbursed by the Person
making such request upon demand.

                                       33
<PAGE>

         SECTION 6.3 INDIVIDUAL RIGHTS OF TRUSTEE. The Trustee in its individual
or any other capacity may become the owner or pledgee of a Note and may
otherwise deal with the Issuer or its Affiliates with the same rights it would
have if it were not the Trustee. Any Note Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Trustee must comply with Section 6.11.

         SECTION 6.4 TRUSTEE'S DISCLAIMER. The Trustee shall not be responsible
for and makes no representation as to the validity or adequacy of this
Indenture, the Trust Estate, the Collateral or the Notes, it shall not be
accountable for the Issuer's use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuer in the Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Trustee's certificate of authentication.

         SECTION 6.5 NOTICE OF DEFAULTS. If an Event of Default occurs and is
continuing and if it is either known by, or written notice of the existence
thereof has been delivered to, a Responsible Officer of the Trustee, the Trustee
shall mail to the Administrative Agent and each Noteholder a notice of the Event
of Default within three (3) Business Days after such knowledge or notice occurs.

         SECTION 6.6 REPORTS BY TRUSTEE TO THE NOTEHOLDERS. The Trustee shall on
behalf of the Issuer deliver to the Noteholders and the Administrative Agent
such information in its possession and which is requested by the Issuer as may
be reasonably required to enable the Noteholders and the Administrative Agent to
prepare their respective Federal and State income tax returns.

         SECTION 6.7 COMPENSATION AND INDEMNITY.

         (a) The Trustee shall be entitled to compensation for its services
hereunder, which shall be payable pursuant to SECTION 8.5 hereof. The Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall reimburse the Trustee, pursuant and subject to
SECTION 8.5 hereof, for all reasonable out-of-pocket expenses incurred or made
by it, including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and
experts. The Issuer shall or shall cause CPS to indemnify the Trustee against
any and all loss, liability or expense incurred by the Trustee without willful
misfeasance, negligence or bad faith on its part arising out of or in connection
with the acceptance or the administration of this trust and the performance of
its duties hereunder, including the costs and expenses of defending itself
against any claim or liability in connection therewith. The Trustee shall notify
the Issuer and CPS promptly of any claim for which it may seek indemnity.
Failure by the Trustee to so notify the Issuer and CPS shall not relieve the
Issuer of its obligations hereunder. The Trustee may have separate counsel and
the Issuer shall or shall cause CPS to pay the reasonable fees and expenses of
such counsel. Neither the Issuer nor CPS need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Trustee through the
Trustee's own willful misconduct, negligence or bad faith.

                                       34
<PAGE>

         (b) The Issuer's payment obligations to the Trustee pursuant to this
Section shall survive the discharge of this Indenture. When the Trustee incurs
expenses after the occurrence of a Default specified in SECTION 5.1(f), (g) or
(h) with respect to the Issuer, the expenses are intended to constitute expenses
of administration under Title 11 of the United States Code or any other
applicable Federal or State bankruptcy, insolvency or similar law.
Notwithstanding anything else set forth in this Indenture or the other Basic
Documents, the recourse of the Trustee hereunder and under the other Basic
Documents specifically shall not be recourse to the assets of the Noteholders or
the Administrative Agent.

         SECTION 6.8 REPLACEMENT OF TRUSTEE.

         (a) The Issuer may, with the consent of the Administrative Agent and
the Majority Noteholders, and at the request of the Administrative Agent (acting
upon the written direction of the Majority Noteholders) shall, remove the
Trustee if:

                  (i) the Trustee fails to comply with SECTION 6.11 or the
         Trustee fails to perform any other material covenant or agreement of
         the Trustee set forth in the Basic Documents to which the Trustee is a
         party and such failure continues for 45 days after written notice of
         such failure from the Administrative Agent or a Noteholder;

                  (ii) an Insolvency Event with respect to the Trustee occurs;
         or

                  (iii) the Trustee otherwise becomes incapable of acting.

         (b) If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason (the Trustee in such event being referred to
herein as the retiring Trustee), the Issuer shall promptly appoint a successor
Trustee acceptable to the Administrative Agent and the Majority Noteholders. If
the Issuer fails to appoint such a successor Trustee, the Administrative Agent
and the Majority Noteholders may appoint a successor Trustee.

         (c) A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee, the Administrative Agent, the Noteholders
and the Issuer, whereupon, the resignation or removal of the retiring Trustee
shall become effective, and the successor Trustee shall have all the rights,
powers and duties of the retiring Trustee under this Indenture. The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee.

         (d) If a successor Trustee does not take office within 60 days after
the retiring Trustee resigns or is removed, the retiring Trustee, the Issuer,
the Administrative Agent or the Majority Noteholders may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

         (e) Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor Trustee
pursuant to SECTION 6.8.

         (f) Notwithstanding the replacement of the Trustee pursuant to this
Section, the obligations of the Issuer and CPS under SECTION 6.7 shall continue
for the benefit of the retiring Trustee.

                                       35
<PAGE>

         SECTION 6.9 SUCCESSOR TRUSTEE BY MERGER.

         (a) If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or
transferee corporation without any further act shall be the successor Trustee.
The Trustee shall provide the Noteholders and the Administrative Agent prior
written notice of any such transaction.

         (b) In case at the time such successor or successors to the Trustee by
merger, conversion or consolidation shall succeed to the trusts created by this
Indenture the Notes shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any
predecessor trustee, and deliver the Notes so authenticated; and in case at that
time the Notes shall not have been authenticated, any successor to the Trustee
may authenticate the Notes either in the name of any predecessor hereunder or in
the name of the successor to the Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Notes or in
this Indenture provided that the certificate of the Trustee shall have.

         SECTION 6.10 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.

         (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at the time be located, the Trustee with
the consent of the Administrative Agent and the Majority Noteholders shall have
the power and may execute and deliver all instruments to appoint one or more
Persons to act as a co-trustee or co-trustees, or separate trustee or separate
trustees, of all or any part of the Trust Estate, and to vest in such Person or
Persons, in such capacity and for the benefit of the Noteholders and the
Administrative Agent, such title to the Trust Estate, or any part thereof, and,
subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or
desirable. No co-trustee or separate trustee hereunder shall be required to meet
the terms of eligibility as a successor trustee under Section 6.11 and no notice
to the Administrative Agent or the Noteholders of the appointment of any
co-trustee or separate trustee shall be required under Section 6.8 hereof.

         (b) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                  (i) all rights, powers, duties and obligations conferred or
         imposed upon the Trustee shall be conferred or imposed upon and
         exercised or performed by the Trustee and such separate trustee or
         co-trustee jointly (it being understood that such separate trustee or
         co-trustee is not authorized to act separately without the Trustee
         joining in such act), except to the extent that under any law of any
         jurisdiction in which any particular act or acts are to be performed
         the Trustee shall be incompetent or unqualified to perform such act or
         acts, in which event such rights, powers, duties and obligations
         (including the holding of title to the Trust or any portion thereof in
         any such jurisdiction) shall be exercised and performed singly by such
         separate trustee or co-trustee, but solely at the direction of the
         Trustee;

                                       36
<PAGE>

                  (ii) no trustee hereunder shall be personally liable by reason
         of any act or omission of any other trustee hereunder, including acts
         or omissions of predecessor or successor trustees; and

                  (iii) the Trustee may at any time accept the resignation of or
         remove any separate trustee or co-trustee.

         (c) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Indenture and the conditions
of this ARTICLE VI. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Trustee or separately, as
may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision of this Indenture relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.

         (d) Any separate trustee or co-trustee may at any time constitute the
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Indenture on its behalf and in its name. If any separate trustee or co-trustee
shall die, dissolve, become insolvent, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall
invest in and be exercised by the Trustee, to the extent permitted by law,
without the appointment of a new or successor trustee.

         SECTION 6.11 ELIGIBILITY: DISQUALIFICATION. The Trustee shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition and subject to supervision or
examination by federal or state authorities; and having a rating, both with
respect to long-term and short-term unsecured obligations, of not less than
investment grade by Standard & Poor's or Moody's. The Trustee shall provide
copies of such reports to the Administrative Agent and the Noteholders upon
request.

         SECTION 6.12 [RESERVED].

         SECTION 6.13 APPOINTMENT AND POWERS. Subject to the terms and
conditions hereof, the initial Noteholder and the Administrative Agent hereby
appoint Wells Fargo Bank, National Association as the Trustee with respect to
the Collateral, and Wells Fargo Bank, National Association hereby accepts such
appointment and agrees to act as Trustee with respect to the Collateral for the
benefit of the Noteholders and the Administrative Agent, to maintain custody and
possession of such Collateral (except as otherwise provided hereunder) and to
perform the other duties of the Trustee in accordance with the provisions of
this Indenture and the other Basic Documents. Each Noteholder, by its acceptance
of a Note, hereby authorizes the Trustee to take such action on its behalf, and
to exercise such rights, remedies, powers and privileges hereunder, as such
Noteholder may direct and as are specifically authorized to be exercised by the
Trustee by the terms hereof, together with such actions, rights, remedies,
powers and privileges as are reasonably incidental thereto. The Trustee shall
act upon and in compliance with the written instructions of the Administrative
Agent or the Majority Noteholders delivered pursuant to this Indenture promptly
following receipt of such written instructions; provided that the Trustee shall
not act in accordance with any instructions (i) which are not authorized by, or
in violation of the provisions of, this Indenture, (ii) which are in violation
of any applicable law, rule or regulation or (iii) for which the Trustee has not
received reasonable indemnity. Receipt of such instructions shall not be a
condition to the exercise by the Trustee of its express duties hereunder, except
where this Indenture provides that the Trustee is permitted to act only
following and in accordance with such instructions.

                                       37
<PAGE>

         SECTION 6.14 PERFORMANCE OF DUTIES. The Trustee shall have no duties or
responsibilities except those expressly set forth in this Indenture and the
other Basic Documents to which the Trustee is a party or as directed by the
Noteholders or the Administrative Agent in accordance with this Indenture. The
Trustee shall not be required to take any discretionary actions hereunder except
at the written direction of the Administrative Agent or the Majority
Noteholders. The Trustee shall, and hereby agrees that it will, perform all of
the duties and obligations required of it under the Basic Documents.

         SECTION 6.15 LIMITATION ON LIABILITY. Neither the Trustee nor any of
its directors, officers or employees shall be liable for any action taken or
omitted to be taken by it or them in good faith hereunder, or in connection
herewith, except that the Trustee shall be liable for its negligence, bad faith
or willful misconduct. Notwithstanding any term or provision of this Indenture,
the Trustee shall incur no liability to the Issuer, the Administrative Agent or
the Noteholders for any action taken or omitted by the Trustee in connection
with the Collateral, except for the negligence, bad faith or willful misconduct
on the part of the Trustee, and, further, shall incur no liability to the
Administrative Agent or the Noteholders except for negligence, bad faith or
willful misconduct in carrying out its duties to the Administrative Agent and
the Noteholders. The Trustee shall at all times be free independently to
establish to its reasonable satisfaction, but shall have no duty to
independently verify, the existence or nonexistence of facts that are a
condition to the exercise or enforcement of any right or remedy hereunder or
under any of the Basic Documents. The Trustee may consult with counsel, and
shall not be liable for any action taken or omitted to be taken by it hereunder
in good faith and in accordance with the written advice of such counsel. The
Trustee shall not be under any obligation to exercise any of the remedial rights
or powers vested in it by this Indenture or to follow any direction from the
Administrative Agent or the Noteholders unless it shall have received reasonable
security or indemnity satisfactory to the Trustee against the costs, expenses
and liabilities which might be incurred by it.

         SECTION 6.16 [RESERVED].

                                       38
<PAGE>

         SECTION 6.17 SUCCESSOR TRUSTEE.

         (a) MERGER. Any Person into which the Trustee may be converted or
merged, or with which it may be consolidated, or to which it may sell or
transfer its trust business and assets as a whole or substantially as a whole,
or any Person resulting from any such conversion, merger, consolidation, sale or
transfer to which the Trustee is a party, shall (provided it is otherwise
qualified to serve as the Trustee hereunder) be and become a successor Trustee
hereunder and be vested with all of the title to and interest in the Collateral
and all of the trusts, powers, descriptions, immunities, privileges and other
matters and have all of the obligations as its predecessor without the execution
or filing of any instrument or any further act, deed or conveyance on the part
of any of the parties hereto, anything herein to the contrary notwithstanding,
except to the extent, if any, that any such action is necessary to perfect, or
continue the perfection of, the security interest of the Trustee for the benefit
of the Administrative Agent and the Noteholders in the Collateral; provided that
any such successor shall also be the successor Trustee under SECTION 6.9.

         (b) REMOVAL. The Trustee may be removed by the Administrative Agent and
the Majority Noteholders at any time, with or without cause, by an instrument or
concurrent instruments in writing delivered to the Trustee and the Issuer. A
temporary successor may be removed at any time to allow a successor Trustee to
be appointed pursuant to subsection (c) below. Any removal pursuant to the
provisions of this subsection (b) shall take effect only upon the date which is
the latest of (i) the effective date of the appointment of a successor Trustee
and the acceptance in writing by such successor Trustee of such appointment and
of its obligation to perform its duties hereunder in accordance with the
provisions hereof, and (ii) receipt by the Administrative Agent and the
Noteholders of an Opinion of Counsel to the effect described in Section 3.6.

         (c) ACCEPTANCE BY SUCCESSOR. The Majority Noteholders and the
Administrative Agent shall have the sole right to appoint each successor
Trustee. Every temporary or permanent successor Trustee appointed hereunder
shall execute, acknowledge and deliver to its predecessor and to the Trustee,
the Administrative Agent, the Noteholders and the Issuer an instrument in
writing accepting such appointment hereunder and the relevant predecessor shall
execute, acknowledge and deliver such other documents and instruments as will
effectuate the delivery of all Collateral to the successor Trustee, whereupon
such successor, without any further act, deed or conveyance, shall become fully
vested with all the estates, properties, rights, powers, duties and obligations
of its predecessor. Such predecessor shall, nevertheless, on the written request
of the Majority Noteholders and the Administrative Agent or the Issuer, execute
and deliver an instrument transferring to such successor all the estates,
properties, rights and powers of such predecessor hereunder. In the event that
any instrument in writing from the Issuer or the Administrative Agent and the
Majority Noteholders is reasonably required by a successor Trustee to more fully
and certainly vest in such successor the estates, properties, rights, powers,
duties and obligations vested or intended to be vested hereunder in the Trustee,
any and all such written instruments shall at the request of the temporary or
permanent successor Trustee, be forthwith executed, acknowledged and delivered
by the Trustee or the Issuer, as the case may be. The designation of any
successor Trustee and the instrument or instruments removing any Trustee and
appointing a successor hereunder, together with all other instruments provided
for herein, shall be maintained with the records relating to the Collateral and,
to the extent required by applicable law, filed or recorded by the successor
Trustee in each place where such filing or recording is necessary to effect the
transfer of the Collateral to the successor Trustee or to protect or continue
the perfection of the security interests granted hereunder.

                                       39
<PAGE>

         SECTION 6.18 [RESERVED].

         SECTION 6.19 REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE. The Trustee
represents and warrants to the Issuer, the Administrative Agent and the Majority
Noteholders as follows:

         (a) The Trustee is a national banking association, duly organized,
validly existing and in good standing under the laws of the United States and is
duly authorized and licensed under applicable law to conduct its business as
presently conducted.

         (b) The Trustee has all requisite right, power and authority to execute
and deliver this Indenture and to perform all of its duties as Trustee
hereunder.

         (c) The execution and delivery by the Trustee of this Indenture and the
other Basic Documents to which it is a party, and the performance by the Trustee
of its duties hereunder and thereunder, have been duly authorized by all
necessary corporate proceedings and no further approvals or filings, including
any governmental approvals, are required for the valid execution and delivery by
the Trustee, or the performance by the Trustee, of this Indenture and such other
Basic Documents.

         (d) The Trustee has duly executed and delivered this Indenture and each
other Basic Document to which it is a party, and each of this Indenture and each
such other Basic Document constitutes the legal, valid and binding obligation of
the Trustee, enforceable against the Trustee in accordance with its terms,
except as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization and similar laws relating to or affecting the enforcement of
creditors' rights generally and (ii) the availability of equitable remedies may
be limited by equitable principles of general applicability.

         (e) The Trustee is in possession of the Pledged Residual Certificates
set forth in SCHEDULE II hereto.

         SECTION 6.20 WAIVER OF SETOFFS. The Trustee hereby expressly waives any
and all rights of setoff that the Trustee may otherwise at any time have under
applicable law with respect to the Collection Account and agrees that amounts in
the Collection Account shall at all times be held and applied solely in
accordance with the provisions hereof.

         SECTION 6.21 CONTROL BY THE MAJORITY NOTEHOLDERS. The Trustee shall
comply with notices and instructions given by the Issuer only if accompanied by
the written consent of the Majority Noteholders, except that if any Event of
Default shall have occurred and be continuing, the Trustee shall act upon and
comply with notices and instructions given by the Majority Noteholders alone in
the place and stead of the Issuer.

                                       40
<PAGE>

                                   ARTICLE VII
                                   [RESERVED]
                                   ----------

                                  ARTICLE VIII
                COLLECTION OF MONEY AND RELEASES OF TRUST ESTATE
                ------------------------------------------------

         SECTION 8.1 COLLECTION OF MONEY. Except as otherwise expressly provided
herein, the Trustee may demand payment or delivery of, and shall receive and
collect, directly and without intervention or assistance of any fiscal agent or
other intermediary, all money and other property payable to or receivable by the
Trustee pursuant to this Indenture and the other Basic Documents. The Trustee
shall apply all such money received by it as provided in this Indenture. Except
as otherwise expressly provided in this Indenture and the other Basic Documents,
if any default occurs in the making of any payment or performance under any
agreement or instrument that is part of the Trust Estate, the Trustee may take
such action as may be appropriate to enforce such payment or performance,
including the institution and prosecution of appropriate proceedings. Any such
action shall be without prejudice to any right to claim a Default or Event of
Default under this Indenture and any right to proceed thereafter as provided in
Article V.

         SECTION 8.2 ESTABLISHMENT OF COLLECTION ACCOUNT.

         (a) On or prior to the Initial Closing Date, the Trustee established an
account denominated "Collection Account - Folio Funding II, LLC, Wells Fargo
Bank, National Association, as Trustee for the benefit of the Issuer Secured
Parties" (the "COLLECTION ACCOUNT").

         (b) The Collection Account shall be an Eligible Account and shall
relate solely to the Notes and, if applicable, the related Eligible Investments.
The location and account number of the Collection Account as of the Effective
Date is at the Corporate Trust Office, account number 22409000. The Trustee
shall give the Issuer at least five Business Days' written notice of any change
in the location of the Collection Account and any related account identification
information. All amounts, financial assets and investment property held in,
deposited in or credited to, from time to time, the Collection Account shall be
part of the Trust Estate and shall be invested by the Trustee in Eligible
Investments pursuant to Section 8.3(b). In addition, the Trustee shall not in
any way be held liable by reason of any insufficiency in the Collection Account
held by or on behalf of the Trustee resulting from any investment loss on any
Eligible Investments.

         SECTION 8.3 COLLECTION ACCOUNT.

         (a) The Trustee has deposited or caused to be deposited, and agrees to
deposit, or cause to be deposited all distributions received with respect to the
Collateral from and after the Initial Closing Date into the Collection Account.
On the Business Day immediately prior to each Settlement Date, the Trustee shall
inform the Administrative Agent of the amount on deposit in the Collection
Account after all distributions in respect of the Pledged Residual Interest
Certificates have been deposited therein. Any withdrawal or distribution of any
amount on deposit in the Collection Account by the Trustee, including without
limitation, any withdrawal or distribution to be made on any Settlement Date in
accordance with the related Settlement Date Statement, in each case, shall only
be made with the Administrative Agent's prior written approval (such prior
written approval of the Administrative Agent not to be unreasonably withheld and
may be in the form of an email to the Trustee from the Administrative Agent).

         (b) All funds in the Collection Account shall be invested by the
Trustee (if the Trustee maintains the Collection Account), or on behalf of the
Trustee by the depository institution maintaining such account, in Eligible
Investments only upon the written direction from the Issuer, as described below.
Subject to the limitations set forth herein, the Issuer may direct the
depository institution maintaining the Collection Account in writing (with a
copy of such direction to the Trustee, if the Trustee is not the applicable
depository institution) to invest funds in the Collection Account in Eligible
Investments. All such investments shall be in the name of the Trustee for the
benefit of the Noteholders. All income or other gain from investment of monies
deposited in or credited to the Collection Account shall be included in the
Available Funds and distributed in accordance with Section 8.5 on each
Settlement Date. The maximum permissible maturities of any investments of funds
in the Collection Account on any date shall not be later than the Business Day
immediately preceding the Settlement Date next succeeding the date of such
investment. No investment in Eligible Investments may be sold prior to its
maturity. In the absence of written direction as provided above, the Trustee
shall, to the fullest extent practicable, invest and reinvest funds held in the
Collection Account in one or more Eligible Investments described in clause (f)
of the definition thereof.

                                       41
<PAGE>

         SECTION 8.4 [RESERVED]

         SECTION 8.5 DISTRIBUTIONS. On each Settlement Date, subject to Section
5.7 and Section 8.3(a) hereof, based solely on the Settlement Date Statement
upon which the Trustee may conclusively rely, the Trustee shall distribute the
Available Funds on such Settlement Date in the following amounts and order of
priority:

                  (i) to the Trustee, the Trustee Fees payable thereto, and
         reasonable out-of-pocket expenses thereof (including counsel fees and
         expenses) up to a maximum of $50,000 per annum for such Trustee Fees
         and expenses, and all unpaid Trustee Fees and unpaid reasonable
         out-of-pocket expenses (including counsel fees and expenses), but
         subject to the $50,000 per annum cap, from prior Settlement Dates;

                  (ii) to the Administrative Agent, the Administrative Agent
         Fees payable thereto, and reasonable out-of-pocket expenses thereof
         (including counsel fees and expenses) and all unpaid Administrative
         Agent Fees and unpaid reasonable out-of-pocket expenses (including
         counsel fees and expenses) from prior Settlement Dates;

                  (iii) to the Note Purchaser, any amounts then due and owing to
         the Note Purchaser under the Basic Documents;

                  (iv) on a PRO RATA basis in accordance with amounts owed, (x)
         to the Class A-1 Noteholders, the Class A-1 Noteholders' Interest
         Distributable Amount and (y) to the Class A-2 Noteholders, the Class
         A-2 Noteholders' Interest Distributable Amount;

                  (v) to the Class A-1 Noteholders, the Class A-1 Noteholders'
         Principal Distributable Amount and any Prepayment Fees then due and
         owing to the Class A-1 Noteholders;

                  (vi) to the Class A-2 Noteholders, the Class A-2 Noteholders'
         Principal Distributable Amount and any Prepayment Fees then due and
         owing to the Class A-2 Noteholders;

                  (vii) to the Trustee, any amounts owed pursuant to the Basic
         Documents, to the extent not previously paid; and

                  (viii) so long as no Event of Default has occurred, to the
         Issuer, any remaining amounts.

                                       42
<PAGE>

         SECTION 8.6 STATEMENTS TO NOTEHOLDERS. On each Settlement Date, the
Trustee shall make available electronically to each Noteholder of record as of
the related Record Date the Settlement Date Statement prepared by CPS pursuant
to Section 3.9.

         The Trustee may make the Settlement Date Statement and, with the
consent or at the direction of the Issuer, such other information regarding the
Notes and/or the Collateral as the Trustee may have in its possession, available
to the Noteholders via the Trustee's Internet website, but only with the use of
a password provided by the Trustee; PROVIDED, HOWEVER, the Trustee shall have no
obligation to provide such information described in this Section 8.6 until it
has received the requisite information from CPS. The Trustee will make no
representation or warranties as to the accuracy or completeness of such
documents and will assume no responsibility therefor.

         The Trustee's Internet website shall be initially located at
"www.CTSLink.com" or at such other address as shall be specified by the Trustee
from time to time in writing to the Noteholders and the Issuer. In connection
with providing access to the Trustee's Internet website, the Trustee may require
registration and the acceptance of a disclaimer. The Trustee shall not be liable
for the dissemination of information in accordance with this Indenture.

         SECTION 8.7 RELEASE OF TRUST ESTATE.

         (a) Subject to the payment of its fees and expenses pursuant to SECTION
6.7, the Trustee may, and when required by the provisions of this Indenture
shall, execute instruments to release property from the lien of this Indenture,
in a manner and under circumstances that are not inconsistent with the
provisions of this Indenture. No party relying upon an instrument executed by
the Trustee as provided in this ARTICLE VIII shall be bound to ascertain the
Trustee's authority, inquire into the satisfaction of any conditions precedent
or see to the application of any moneys.

         (b) The Trustee shall, at such time as there are no Notes outstanding,
all sums due and owing to the Administrative Agent and the Noteholders under any
of the Basic Documents have been paid in full, and all sums due the Trustee
pursuant to SECTION 6.7 have been paid, release any remaining portion of the
Trust Estate that secured the Notes and the other Issuer Secured Obligations
from the lien of this Indenture and release to the Issuer or any other Person
entitled thereto any funds then on deposit in the Collection Account. The
Trustee shall release property from the lien of this Indenture pursuant to this
SECTION 8.7(b) only upon receipt of an Issuer Request accompanied by an
Officer's Certificate meeting the applicable requirements of SECTION 11.1, a
copy of each of which shall be delivered to the Administrative Agent and the
Noteholders.

         SECTION 8.8 OPINION OF COUNSEL. The Trustee shall receive at least
seven days' notice when requested by the Issuer to take any action pursuant to
Section 8.7(a), accompanied by copies of any instruments involved, and the
Trustee shall also require as a condition to such action, an Opinion of Counsel
in form and substance satisfactory to the Trustee, stating the legal effect of
any such action, outlining the steps required to complete the same, and
concluding that all conditions precedent to the taking of such action have been
complied with and such action will not materially and adversely affect the
security for the Notes or the rights of the Administrative Agent and/or the
Noteholders in contravention of the provisions of this Indenture or any of the
other Basic Documents; provided, however, that such Opinion of Counsel shall not
be required to express an opinion as to the fair value of the Trust Estate.
Counsel rendering any such opinion may rely, without independent investigation,
on the accuracy and validity of any certificate or other instrument delivered to
the Trustee in connection with any such action.

                                       43
<PAGE>

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES
                             -----------------------

         SECTION 9.1 SUPPLEMENTAL INDENTURES WITH THE CONSENT OF THE
ADMINISTRATIVE AGENT AND THE MAJORITY NOTEHOLDERS.

         (a) The Issuer, the Administrative Agent and the Trustee, when
authorized by an Issuer Order, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the Trustee,
for any purpose, but only with the prior written consent of the Majority
Noteholders.

         (b) Unless otherwise specified by the Administrative Agent or the
Majority Noteholders, it shall be necessary for any Act of the Majority
Noteholders under this Section to approve the form and substance of any proposed
supplemental indenture.

         (c) Promptly after the execution by the Issuer, the Administrative
Agent and the Trustee of any supplemental indenture pursuant to this Section,
the Trustee shall mail to each Noteholder a copy of such supplemental indenture.
Any failure of the Trustee to mail such copy shall not, however, in any way
impair or affect the validity of any such supplemental indenture.

         SECTION 9.2 EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Trustee shall be entitled to receive, and subject to
Sections 6.1 and 6.2, shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture that affects the Trustee's own
rights, duties, liabilities or immunities under this Indenture or otherwise.

         SECTION 9.3 EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith, and the
respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Trustee, the Issuer, the Administrative
Agent and the Noteholders shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

                                    ARTICLE X
                        REPAYMENT AND PREPAYMENT OF NOTES
                        ---------------------------------

         SECTION 10.1 REPAYMENT OF THE NOTES; OPTIONAL PREPAYMENT OF THE NOTES.
The outstanding principal balance of the Notes and all accrued and unpaid
interest thereon shall be payable in full by the Facility Termination Date and
otherwise as provided in Section 3.1, Section 8.5, and if applicable, Section
5.7, and the form of Notes attached as Exhibits A-1 and A-2. The Issuer may, at
its option, prepay the Class A-1 Invested Amount and/or the Class A-2 Invested
Amount, in whole or in part, at any time on any Business Day (such day the
"PREPAYMENT DATE") in accordance with this Section 10.1 and Section 10.2;
provided that in connection with a prepayment of the Notes, other than in

                                       44
<PAGE>

connection with a prepayment of the Notes pursuant to Section 3.07 of the Note
Purchase Agreement, no such prepayment may occur unless and until all amounts
due and payable in respect of clauses (i) through (vii) of Section 8.5 have been
paid in full irrespective of whether Available Funds are sufficient for this
purpose. Simultaneous with any such prepayment, the Issuer shall pay all accrued
and unpaid interest on the applicable Invested Amount to be prepaid and all
other amounts then due and owing under the Basic Documents. Any prepayment in
whole or in part of the Notes prior to the date which is 45 days prior to the
Class A-2 Facility Termination Date shall be subject to the payment of a
Prepayment Fee pursuant to Section 3.02(b) of the Note Purchase Agreement. For
the avoidance of doubt, no Collateral shall be released from the lien of the
Indenture until satisfaction and discharge of this Indenture in accordance with
Article IV hereof. Any principal amounts paid in respect of the Notes may not be
re-borrowed.

         SECTION 10.2 NOTICE OF PREPAYMENT. Other than in connection with a
prepayment of the Notes pursuant to Section 3.07 of the Note Purchase Agreement,
notice of any prepayment of the Notes shall be given, upon the direction of the
Issuer, by the Trustee by facsimile transmission, courier or first class mail,
postage prepaid, mailed, faxed or couriered not less than five (5) days prior to
the related Prepayment Date, to the Administrative Agent and each Noteholder.
All notices of prepayment shall state (i) the Prepayment Date, (ii) the
applicable Invested Amount to be prepaid, (iii) the estimated accrued and unpaid
interest on the applicable Invested Amount to be prepaid and (iv) any other
amounts due and owing to the Administrative Agent under the Basic Documents.
Failure to give notice of prepayment, or any defect therein, to a Noteholder or
the Administrative Agent shall not impair or affect the validity of such
prepayment.

         SECTION 10.3 GENERAL PROCEDURES. The applicable Invested Amount of a
class of Notes and amounts due to the Noteholders or the Administrative Agent by
the Issuer under the Basic Documents shall not be considered reduced by any
allocation, setting aside or distribution of any portion of the Available Funds
unless such Available Funds shall have been actually paid to the related
Noteholders or the Administrative Agent, as applicable. The applicable Invested
Amount of a class of Notes and amounts due to the Noteholders or the
Administrative Agent by the Issuer under the Basic Documents shall not be
considered repaid by any distribution of any portion of the Available Funds if
at any time such distribution is rescinded or must otherwise be returned for any
reason, in which event, if such amount has been returned by the related
Noteholders or the Administrative Agent, as applicable, such principal, interest
and/or other amount shall be reinstated in an amount equal to the amount
returned by the related Noteholders or the Administrative Agent, as applicable.
No provision of this Indenture shall require the payment or permit the
collection of interest in excess of the maximum permitted by applicable law.

                                       45
<PAGE>

                                   ARTICLE XI
                                  MISCELLANEOUS
                                  -------------

         SECTION 11.1 COMPLIANCE CERTIFICATES AND OPINIONS, ETC.

         (a) Except as set forth herein, upon any application or request by the
Issuer to the Trustee to take any action under any provision of this Indenture,
the Issuer shall furnish to the Trustee, with a copy of each to the
Administrative Agent and the Noteholders, (i) an Officer's Certificate stating
that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with, and (ii) an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that, in the case of any such application
or request as to which the furnishing of such documents is specifically required
by any provision of this Indenture, no additional certificate or opinion need be
furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

                  (i) a statement that each signatory of such certificate or
         opinion has read or has caused to be read such covenant or condition
         and the definitions herein relating thereto;

                  (ii) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (iii) a statement that, in the opinion of each such signatory,
         such signatory has made such examination or investigation as is
         necessary to enable such signatory to express an informed opinion as to
         whether or not such covenant or condition has been complied with; and

                  (iv) a statement as to whether, in the opinion of each such
         signatory such condition or covenant has been complied with.

         (b) Other than with respect to Dollars, prior to the deposit of any
Collateral or other property or securities with the Trustee that is to be made
subject to the lien of this Indenture, the Issuer shall, in addition to any
obligation imposed in SECTION 11.1(a) or elsewhere in this Indenture, furnish to
the Trustee, with a copy thereof to the Administrative Agent and the
Noteholders, an Officer's Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (on the date of such
deposit) to the Issuer of the Collateral or other property or securities to be
so deposited.

         (c) Notwithstanding Section 2.10 or any provision of this Section, the
Issuer may (A) collect, liquidate, sell or otherwise dispose of Collateral as
and to the extent permitted or required by the Basic Documents and (B) make cash
payments out of the Collection Account as and to the extent permitted or
required by the Basic Documents.

                                       46
<PAGE>

         SECTION 11.2 FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

         (a) In any case where several matters are required to be certified by,
or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

         (b) Any certificate or opinion of an Authorized Officer of the Issuer
may be based, insofar as it relates to legal matters, upon a certificate or
opinion of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his or her certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Seller, the Purchaser or the Issuer, stating that the information with
respect to such factual matters is in the possession of the Seller, the
Purchaser or the Issuer, unless such counsel knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.

         (c) Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

         (d) Whenever in this Indenture, in connection with any application or
certificate or report to the Trustee, it is provided that the Issuer shall
deliver any document as a condition of the granting of such application, or as
evidence of the Issuer's compliance with any term hereof, it is intended that
the truth and accuracy, at the time of the granting of such application or at
the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Trustee's right to rely upon the truth and accuracy of
any statement or opinion contained in any such document as provided in Article
VI.

                                       47
<PAGE>

         SECTION 11.3 ACTS OF THE NOTEHOLDERS OR THE ADMINISTRATIVE AGENT.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by a
Noteholder or the Administrative Agent may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Noteholder or
the Administrative Agent in person or by agents duly appointed in writing; and
except as herein otherwise expressly provided such action shall become effective
when such instrument or instruments are delivered to the Trustee, and, where it
is hereby expressly required, to the Issuer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "ACT" of the Noteholders or the Administrative Agent signing such
instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.1) conclusive in favor of the Trustee and
the Issuer, if made in the manner provided in this Section.

         (b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any customary manner of the Trustee.

         (c) The ownership of the Notes shall be proved by the Note Register.

         (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by a Holder of a Note shall bind each Holder of such Note
issued upon the registration thereof or in exchange therefor or in lieu thereof,
in respect of anything done, omitted or suffered to be done by the Trustee or
the Issuer in reliance thereon, whether or not notation of such action is made
upon such Note.

         SECTION 11.4 NOTICES, ETC., TO TRUSTEE, ISSUER, THE ADMINISTRATIVE
AGENT AND NOTEHOLDERS. Any request, demand, authorization, direction, notice,
consent, waiver or Act of the Noteholders or the Administrative Agent or other
documents provided or permitted by this Indenture to be made upon, given or
furnished to or filed with:

         (a) the Trustee by the Administrative Agent, the Noteholders or by the
Issuer shall be sufficient for every purpose hereunder if personally delivered,
delivered by overnight courier or mailed certified mail, return receipt
requested and shall be deemed to have been duly given upon receipt of the
Trustee at its Corporate Trust Office or in the case of email, notice shall be
deemed to have been duly given when transmitted by email (evidenced by
telephonic or written confirmation of receipt of such email);

         (b) the Issuer by the Trustee or by the Administrative Agent or the
Noteholders shall be sufficient for every purpose hereunder if personally
delivered, delivered by overnight courier or mailed certified mail, return
receipt requested or via email and in the case of personal delivery or overnight
courier only, shall be deemed to have been duly given upon receipt by the Issuer
or in the case of email, notice shall be deemed to have been duly given when
transmitted by email (evidenced by telephonic or written confirmation of receipt
of such email), c/o Consumer Portfolio Services, Inc. 16355 Laguna Canyon Road,
Irvine, California 92618 Attention: Mark Creatura, Esq. Confirmation: (888)
785-6691, email: mcreatura@consumerportfolio.com or at such other address
previously furnished in writing to the Trustee by the Issuer. The Issuer shall
promptly transmit any notice received by it from the Noteholders or the
Administrative Agent to the Trustee; or

                                       48
<PAGE>

         (c) the Administrative Agent shall be sufficient for any purpose
hereunder if in writing and delivered by overnight courier or mailed certified
mail, return receipt requested, or personally delivered or, in the case of
email, notice shall be deemed to have been duly given when transmitted by email
(evidenced by telephonic or written confirmation of receipt of such email) to
the recipient as follows (or such other address previously furnished in writing
to the Trustee):

                  To the Administrative Agent:

                  Citigroup Financial Products Inc.
                  390 Greenwich Street
                  New York New York 10013
                  Attention:  Ari Rosenberg, Managing Director
                  email: ari.rosenberg@citi.com
                  Telephone No.: 212-723-1041

                  Attention:  Marc Daly, Vice President
                  Telecopier No.: 212-723-8591
                  Telephone No.: 212-723-4571

                  with a copy to:

                  Citigroup Global Securitized Products
                  450 Mamaroneck Avenue
                  Harrison, NY 10528
                  Attention: Robert Kohl, Senior Vice President
                  email:
                  Telephone No.: 914-899-7142
                  Attention: John Koterbay, Vice President
                  email:
                  Telephone No.: 914-899-7155

         (d) the Noteholders shall be sufficient for any purpose hereunder if in
writing and delivered by overnight courier or mailed certified mail, return
receipt requested, or personally delivered or telexed or telecopied to the
recipient's contact information reflected in the Note Register.

         (e) The Administrative Agent may deliver to the Noteholders any
notices, reports, statements, certificates or any other documentation delivered
to the Administrative Agent hereunder or under any Basic Document, but is under
no obligation to so deliver such documentation and shall not be liable for the
content thereof.

         SECTION 11.5 WAIVER. Where this Indenture provides for notice in any
manner, such notice may be waived in writing by any Person entitled to receive
such notice with respect to itself only, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by the
Administrative Agent or a Noteholder shall be filed with the Trustee but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such a waiver. In case, by reason of the suspension of regular
mail service as a result of a strike, work stoppage or similar activity, it
shall be impractical to mail notice of any event to the Administrative Agent or
a Noteholder when such notice is required to be given pursuant to any provision
of this Indenture, then any manner of giving such notice as shall be
satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice.

                                       49
<PAGE>

         SECTION 11.6 ALTERNATE PAYMENT AND NOTICE PROVISIONS. Notwithstanding
any provision of this Indenture or the Notes to the contrary, the Issuer may
enter into any agreement with a Holder of a Note or the Administrative Agent
providing for a method of payment, or notice by the Trustee or the Note Paying
Agent to such Holder or the Administrative Agent, that is different from the
methods provided for in this Indenture for such payments or notices, provided
that such methods are reasonable and consented to by the Trustee (which consent
shall not be unreasonably withheld). The Issuer will furnish to the Trustee a
copy of each such agreement and the Trustee will cause payments to be made and
notices to be given in accordance with such agreements.

         SECTION 11.7 EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         SECTION 11.8 SUCCESSORS AND ASSIGNS. All covenants and agreements in
this Indenture and the Note by the Issuer shall bind its successors and assigns,
whether so expressed or not. All agreements of the Trustee in this Indenture
shall bind its successors. The Issuer may not assign any of its rights or
obligations hereunder, under the Notes or under any other Basic Document without
the prior written consent of the Administrative Agent and the Majority
Noteholders. Each Noteholder may assign, participate or otherwise transfer to
any Affiliate of such Noteholder or any other Person all or any of its rights or
obligations under its Note, this Indenture and the other Basic Documents. The
Issuer agrees to cooperate with each Noteholder in connection with any such
assignment or transfer, to execute and deliver such replacement notes, and to
enter into such restatements of, and amendments, supplements and other
modifications to, this Indenture and the other Basic Documents in order to give
effect to such assignment or transfer.

         SECTION 11.9 BENEFITS OF INDENTURE. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, the Administrative Agent (which shall be
a third-party beneficiary of this Indenture) and its successors and assigns, and
the Noteholders, and any other party secured hereunder, and any other Person
with an ownership interest in any part of the Trust Estate, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

         SECTION 11.10 SEVERABILITY. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         SECTION 11.11 LEGAL HOLIDAYS. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes, this Indenture or any other Basic Document) payment need
not be made on such date, but may be made on the next succeeding Business Day
with the same force and effect as if made on the date on which nominally due,
and no interest shall accrue for the period from and after any such nominal
date.

         SECTION 11.12 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                       50
<PAGE>

         SECTION 11.13 COUNTERPARTS. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument. Any signature page to this Indenture containing a manual
signature may be delivered by facsimile transmission or other electronic
communication device capable of transmitting or creating a printable written
record, and when so delivered shall have the effect of delivery of an original
manually signed signature page.

         SECTION 11.14 RECORDING OF INDENTURE. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Trustee or any other counsel reasonably acceptable
to the Trustee) to the effect that such recording is necessary either for the
protection of the Noteholders, the Administrative Agent or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Trustee under this Indenture.

         SECTION 11.15 ISSUER OBLIGATION. The obligations of the Issuer under
this Indenture and the other Basic Documents shall be full recourse obligations
of the Issuer. Notwithstanding the foregoing, except as provided for in the
Guaranty, no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer or the Trustee on the Notes, under this Indenture, any
other Basic Document or any certificate or other writing delivered in connection
herewith or therewith, against (i) the Trustee in its individual capacity, (ii)
any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Issuer or the
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer or the Trustee or of any successor or assign of the Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Trustee has no such obligations in its individual
capacity) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity. Nothing contained in this Section shall limit or be deemed
to limit any obligations of the Issuer, the Purchaser or the Seller hereunder or
under any other Basic Document, as applicable, which obligations are full
recourse obligations of the Issuer, the Purchaser and the Seller.

         SECTION 11.16 NO PETITION. The Trustee, by entering into this
Indenture, hereby covenants and agrees that it will not at any time institute
against the Issuer, or join in any institution against the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States Federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, this
Indenture or any of the Basic Documents.

                                       51
<PAGE>

         SECTION 11.17 BOOKS AND RECORDS; INSPECTION; OTHER INFORMATION.

         (a) The Issuer shall maintain accurate and complete books and records
with respect to the Collateral and the Issuer's business. All accounting books
and records shall be maintained in accordance with GAAP.

         (b) The Issuer shall, and shall cause each of its Affiliates to, permit
any representative of the Administrative Agent, a Noteholder or the Trustee to
visit and inspect any of the properties of the Issuer and such Affiliates to
examine the books and records of the Issuer and such Affiliates, as applicable,
and to make copies and take extracts therefrom, and to discuss the business,
operations, properties, condition (financial or otherwise) or prospects of the
Issuer and each such Affiliate, as applicable, or any of the Collateral with the
officers and independent public accountants thereof and as often as the
Administrative Agent, a Noteholder or the Trustee may reasonably request, and so
long as no Default or Event of Default shall have occurred and be continuing,
all at such reasonable times during normal business hours upon reasonable
notice; provided that, after a Default or Event of Default shall have occurred
and be continuing, the Administrative Agent, a Noteholder or the Trustee shall
make such inspections, examine such documents and conduct such discussions at
such times as it may determine in its sole discretion.

         (c) The Issuer shall promptly provide to the Administrative Agent all
information regarding the Collateral, its operations and practices as the
Administrative Agent shall reasonably request.

         (d) The Issuer shall furnish or cause to be furnished to the
Administrative Agent, as soon as publicly available, copies of (w) any and all
Relevant Reports that CPS or the Issuer sends to its respective shareholders or
members, (x) all reports, correspondence and other information provided by CPS
to its unsecured noteholders, (y) copies of all (if any) regular, periodic and
special reports, and all registration statements publicly filed by CPS or any
Affiliate of CPS with the Securities and Exchange Commission or any Governmental
Authority that supervises the issuance of securities by CPS, the Issuer or any
other Affiliate of CPS, and (z) any press releases concerning CPS or the Issuer.

         SECTION 11.18 ENTIRE AGREEMENT. This Indenture, together with the other
Basic Documents, including the exhibits and schedules thereto, contains a final
and complete integration of all prior expressions by the parties hereto with
respect to the subject matter hereof and shall constitute the entire agreement
among the parties hereto with respect to the subject matter hereof, superseding
all previous oral statements and other writings with respect thereto.

         SECTION 11.19 EFFECTIVENESS. This Agreement shall be effective as of
the Effective Date upon (i) the execution and delivery by the Issuer, the
Trustee and the Administrative Agent, (ii) receipt of the written consent of the
Administrative Agent and the Majority Noteholders and (iii) the satisfaction of
all conditions precedent set forth in Article VI of the Note Purchase Agreement.

         SECTION 11.20 SPECIFIC PERFORMANCE. The Issuer expressly agrees that
any breach or threatened breach of any duty, covenant, undertaking, indemnity,
agreement or obligation hereunder or under any other Basic Document will cause
irreparable harm to the Noteholder, the Note Purchaser and the Administrative
Agent and the Noteholder, the Note Purchaser and the Administrative Agent shall
be entitled, in addition to any other rights or remedies provided hereunder,
thereunder or otherwise by law or in equity, to injunctive relief, any
application for which the Issuer shall not oppose.

                            [Signature Page Follows]

                                       52
<PAGE>

         IN WITNESS WHEREOF, the Issuer, the Administrative Agent and the
Trustee have caused this Indenture to be duly executed by their respective
officers, hereunto duly authorized, all as of the day and year first above
written.

                                     FOLIO FUNDING II, LLC, as Issuer

                                     By:      __________________________________
                                     Name:    __________________________________
                                     Title:   __________________________________

                                     CITIGROUP FINANCIAL PRODUCTS INC.,
                                     as Administrative Agent

                                     By:      __________________________________
                                     Name:    __________________________________
                                     Title:   __________________________________

                                     WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                     as Trustee

                                     By:      __________________________________
                                     Name:    __________________________________
                                     Title:   __________________________________

Consented and agreed to solely for purposes of Section 9.1 of the Original
Indenture:

CITIGROUP FINANCIAL PRODUCTS, INC.,
as Administrative Agent

By: ________________________________
Name:
Title:

CITIGROUP FINANCIAL PRODUCTS, INC.,
as the Majority Noteholder

By: ________________________________
Name:
Title:

<PAGE>

                                                                     EXHIBIT A-1

                    AMENDED AND RESTATED CLASS A-1 TERM NOTE

REGISTERED                                                           $10,000,000

No. A-1                                                Percentage Interest:___ %

                       SEE REVERSE FOR CERTAIN CONDITIONS

THIS CLASS A-1 NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR
"BLUE SKY" LAWS AND MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY TO (I) THE ISSUER
(UPON REDEMPTION THEREOF OR OTHERWISE) OR AN AFFILIATE OF THE ISSUER (AS
CERTIFIED BY THE ISSUER) OR (2) AN INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED
INVESTOR" AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D
PROMULGATED UNDER THE SECURITIES ACT THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY
IN THE FORM SPECIFIED IN THE INDENTURE, TO THE EFFECT THAT IT IS AN
INSTITUTIONAL ACCREDITED INVESTOR ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE
ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE
INSTITUTIONAL ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS
FIDUCIARY CAPACITY) (3) SO LONG AS THIS CLASS A-1 NOTE IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A TO A PERSON THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY
IN THE FORM SPECIFIED IN THE INDENTURE, TO THE EFFECT THAT SUCH PERSON IS A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A), ACTING FOR ITS OWN
ACCOUNT, OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED
INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE, OR TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, OR (4) IN A TRANSACTION OTHERWISE EXEMPT
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION, IN EACH SUCH
CASE, IN COMPLIANCE WITH THE INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION: PROVIDED, THAT, IN THE
CASE OF CLAUSE (4), THE TRUSTEE OR THE ISSUER MAY REQUIRE AN OPINION OF COUNSEL
TO THE EFFECT THAT SUCH TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE
SECURITIES ACT, WHICH OPINION OF COUNSEL, IF SO REQUIRED, SHALL BE ADDRESSED TO
THE ISSUER AND THE TRUSTEE AND SHALL BE SECURED AT THE EXPENSE OF THE HOLDER. NO
REPRESENTATION IS MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE
144A FOR RESALES OF THIS CLASS A-1 NOTE.

                                      A-1
<PAGE>

THE PRINCIPAL OF THIS CLASS A-1 NOTE IS PAYABLE IN INSTALLMENTS AND SUBJECT TO
DECREASES AS SET FORTH HEREIN AND IN THE INDENTURE. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS CLASS A-1 NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

THIS CLASS A-1 NOTE AMENDS AND RESTATES THE CLASS A-1 VARIABLE FUNDING NOTE,
DATED AS OF JULY 13, 2007 IN THE ORIGINAL PRINCIPAL AMOUNT OF UP TO
$60,000,000.00 ISSUED BY THE ISSUER UNDER THE INDENTURE (THE "ORIGINAL NOTE"),
AND IS NOT A NOVATION OF THE ORIGINAL NOTE.

THE CLASS A-1 NOTE REGISTRAR SHALL NOT REGISTER ANY TRANSFER OR EXCHANGE OF THIS
CLASS A-1 NOTE TO THE EXTENT THAT UPON SUCH TRANSFER OR EXCHANGE THERE WOULD BE
MORE THAN TEN (10) PERSONS REFLECTED ON THE NOTE REGISTER AS CLASS A-1
NOTEHOLDERS.

                              FOLIO FUNDING II, LLC
                               CLASS A-1 TERM NOTE

FOLIO FUNDING II, LLC, a Delaware limited liability company (herein referred to
as the "ISSUER"), for value received, hereby promises to pay to
[________________] (the "CLASS A-1 NOTEHOLDER"), or its registered assigns, such
Class A-1 Noteholder's pro rata portion (based on the Percentage Interest
reflected on the face of this Class A-1 Note) of the principal sum of TEN
MILLION DOLLARS ($10,000,000.00) or, if less, the Holders pro rata portion
(based on the Percentage Interest reflected on the face of this Class A-1 Note)
of the aggregate unpaid principal amount outstanding under all of the Class A-1
Notes (whether or not shown on the schedule attached hereto (or such electronic
counterpart maintained by the Trustee), which amount shall be payable in the
amounts and at the times set forth in Section 2.8(b) of the Indenture (in each
case based on the applicable Percentage Interest). The Issuer will pay interest
on the Holder's pro rata portion of the Class A-1 Invested Amount at the Class
A-1 Note Interest Rate. Such interest shall be due and payable on each
Settlement Date until the principal of this Class A-1 Note is paid or made
available for payment, to the extent funds will be available from the Collection
Account processed from and including the preceding Settlement Date to but
excluding each such Settlement Date in respect of (a) an amount equal to
interest accrued for the related Interest Period, which will be equal to the sum
of the products, for each day during the related Interest Period, of (i) the
Class A-1 Note Interest Rate for such date during the Interest Period, (ii) the
Class A-1 Invested Amount as of the close of business on such date divided by
360 and (iii) the applicable Percentage Interest, plus (b) an amount equal to a
pro rata portion of any accrued and unpaid Class A-1 Noteholders' Interest
Carryover Shortfall with respect to prior Interest Periods, with interest on the
amount of such Class A-1 Noteholders' Interest Carryover Shortfall at the Class
A-1 Note Interest Rate from the first Business Day of the related Interest
Period. The Issuer may, at its option, prepay the Class A-1 Invested Amount, in
whole or in part, at any time pursuant to Section 10.1 of the Indenture.
Following the occurrence of an Event of Default, the Trustee (acting upon the
written direction of the Majority Noteholders) may declare the Class A-1
Invested Amount to be immediately due and payable at par, together with accrued
interest thereon, in accordance with Section 5.2 of the Indenture. Principal of
and interest on this Class A-1 Note shall be paid in the manner specified on the
reverse hereof.

                                      A-2
<PAGE>

The principal of and interest on this Class A-1 Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. This Class A-1 Note does not
represent an interest in, or an obligation of CPS or any affiliate of CPS other
than the Issuer.

Reference is made to the further provisions of this Class A-1 Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Class A-1 Note. Although a summary of certain provisions of
the Indenture are set forth below and on the reverse hereof and made a part
hereof, this Class A-1 Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to the
interests, rights, benefits, obligations, proceeds and duties evidenced hereby
and the rights, duties and obligations of the Seller and the Trustee. A copy of
the Indenture may be requested from the Trustee by writing to the Trustee at:
Wells Fargo Bank, National Association, 6th & Marquette, MAC N9311-161,
Minneapolis, Minnesota 55479, Attention: Corporate Trust Services, -- Asset
Backed Administration. To the extent not defined herein, the capitalized terms
used herein have the meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the Trustee
whose name appears below by manual signature, this Class A-1 Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                            [Signature page follows.]

                                      A-3
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date: [_____________]                FOLIO FUNDING II, LLC

                                     By:      __________________________________
                                     Name:    __________________________________
                                     Title:   __________________________________

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is the Class A-1 Note issued under the within-mentioned Indenture.

                                      WELLS FARGO BANK, NATIONAL
                                      ASSOCIATION, not in its
                                      individual capacity, but
                                      solely as Trustee

                                      By: ______________________________________
                                      Authorized Signature

                                      A-4
<PAGE>

                       REVERSE OF THE CLASS A-1 TERM NOTE

This Class A-1 Note is the duly authorized Class A-1 Note of the Issuer,
designated as its Class A-1 Term Note (herein called the "CLASS A-1 NOTE"),
issued under (i) the Amended and Restated Indenture, dated as of July 10, 2008
(such Indenture, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with the terms thereof, is herein called the
"INDENTURE"), among the Issuer, Citigroup Financial Products, Inc., as
administrative agent (the "ADMINISTRATIVE AGENT") and Wells Fargo Bank, National
Association, a national banking association, as trustee (the "TRUSTEE", which
term includes any successor Trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights and obligations thereunder of the Issuer, the Trustee, the
Administrative Agent and the Class A-1 Noteholders. The Class A-1 Note is
subject to all terms of the Indenture. All terms used in this Class A-1 Note
that are defined in the Indenture, as amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof, shall have the
meanings assigned to them in or pursuant to the Indenture, as so amended,
supplemented or otherwise modified.

"SETTLEMENT DATE" means, the 18th day of each calendar month or, if such 18th
day is not a Business Day, the next Business Day.

The Class A-1 Notes are payable in the amounts and at times set forth in Section
2.8(b) of the Indenture. Notwithstanding the foregoing, if a Principal Coverage
Ratio Violation has occurred or an Event of Default shall have occurred and be
continuing then, in certain circumstances, principal on the Class A-1 Note may
be paid earlier, as described in the Indenture.

Payments of interest on this Class A-1 Note due and payable on each Settlement
Date, together with the installment of principal then due, and any payments of
principal made on any Business Day in respect of any prepayments, to the extent
not in full payment of this Class A-1 Note, shall be made by wire transfer to
the Holder of record of this Class A-1 Note (or any predecessor Class A-1 Note)
on the Note Register as of the close of business on each Record Date. Any
reduction in the principal amount of this Class A-1 Note (or any predecessor
Class A-1 Note) effected by any payments made on any date shall be binding upon
all future Holders of this Class A-1 Note and of any Class A-1 Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted thereon. Final payment of principal (together with any
accrued and unpaid interest) on this Class A-1 Note will be paid to the Class
A-1 Noteholders only upon presentation and surrender of this Class A-1 Note at
the Corporate Trust Office for cancellation by the Trustee.

The Issuer shall pay interest on overdue installments of interest at the Class
A-1 Note Interest Rate (calculated for this purpose using the Class A-1 Default
Applicable Margin) to the extent lawful.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-1 Note may be registered on the Note
Register upon surrender of this Class A-1 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form

                                      A-5
<PAGE>

satisfactory to the Issuer and the Registrar duly executed by the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Class
A-1 Notes of authorized Percentage Interest and in the same aggregate Percentage
Interest will be issued to the designated transferee or transferees. No service
charge will be charged for any registration of transfer or exchange of this
Class A-1 Note, but the transferor may be required to pay a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any such registration of transfer or exchange.

The obligations of the Issuer under the Indenture, this Class A-1 Note and the
other Basic Documents shall be full recourse obligations of the Issuer.
Notwithstanding the foregoing, except as provided for in the Guaranty, the Class
A-1 Noteholder, by its acceptance of this Class A-1 Note, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer or the Trustee on the Class A-1 Notes, under the
Indenture, any other Basic Document or any certificate or other writing
delivered in connection herewith or therewith, against (i) the Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director, employee or
agent of the Issuer or the Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer or the Trustee or of any successor or assign
of the Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Trustee has no such obligations
in its individual capacity) and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity. Nothing contained in this
Section shall limit or be deemed to limit any obligations of the Issuer, the
Purchaser or the Seller hereunder or under any other Basic Document, as
applicable, which obligations are full recourse obligations of the Issuer, the
Purchaser and the Seller.

Each Class A-1 Noteholder, by its acceptance of this Class A-1 Note, covenants
and agrees that by accepting the benefits of the Indenture that such Class A-1
Noteholder will not institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Class A-1
Note, the Indenture or the Basic Documents.

Prior to the due presentment for registration of transfer of this Class A-1
Note, the Trustee and any agent of the Trustee may treat the Person in whose
name the Class A-1 Note (as of the applicable Record Date) is registered as the
owner hereof for all purposes, whether or not the Class A-1 Note be overdue, and
neither the Issuer, the Trustee nor any such agent shall be affected by notice
to the contrary.

It is the intent of the Issuer and the Class A-1 Noteholders that, for Federal,
State and local income and franchise tax purposes, this Class A-1 Note will
evidence indebtedness of the Issuer secured by the Collateral. Each Class A-1
Noteholder, by its acceptance of the Class A-1 Note, agrees to treat the Class
A-1 Note for Federal, State and local income and franchise tax purposes as
indebtedness of the Issuer.

                                      A-6
<PAGE>

The Indenture permits in certain circumstances, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Administrative Agent and the
Class A-1 Noteholders under the Indenture at any time by the Issuer with the
prior written consent of the Administrative Agent and the Majority Noteholders.
The Indenture also contains provisions permitting the Administrative Agent
(acting upon the written direction of the Majority Noteholders) to waive
compliance by the Issuer with certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Administrative Agent shall
be conclusive and binding upon the current Class A-1 Noteholders and all future
Class A-1 Noteholders and of any Class A-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-1 Note.

The term "ISSUER" as used in this Class A-1 Note includes any successor to the
Issuer under the Indenture.

This Class A-1 Note is issuable only in registered form in Percentage Interests
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-1 Note and the Indenture shall be construed in accordance with the
law of the State of New York, without reference to its conflict of law
provisions (other than Section 5-1401 of the General Obligations Law), and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such law.

No reference herein to the Indenture and no provision of this Class A-1 Note or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Class
A-1 Note at the times, place, and rate, and in the coin or currency herein
prescribed, subject to any duty of the Issuer to deduct or withhold any amounts
as required by law, including any applicable U.S. withholding taxes.

                                      A-7
<PAGE>
<TABLE>
<S>     <C>

                                         DECREASES

====================================================================================================
                                                       Class A-1
                Unpaid                                    Note
               Principal                                Interest   Interest Period   Notation Made
    Date        Amount        Decrease       Total        Rate     (if applicable)        By
====================================================================================================

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

====================================================================================================
</TABLE>

                                      A-8
<PAGE>

                                   ASSIGNMENT

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

________________________________

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

unto ___________________________________________________________________________
                         (name and address of assignee)

the within Class A-1 Note and all rights thereunder, and hereby irrevocably
constitutes and appoints______________________, attorney, to transfer said Class
A-1 Note on the books kept for registration thereof, with full power of
substitution in the premises.

Dated: ________________________              __________________________________*
                                                    Signature Guaranteed:

_______________________________              ___________________________________

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

                                      A-9
<PAGE>

                                                                     EXHIBIT A-2

                    AMENDED AND RESTATED CLASS A-2 TERM NOTE

REGISTERED                                                           $60,000,000

No. A-1                                                Percentage Interest:___ %

                       SEE REVERSE FOR CERTAIN CONDITIONS

THIS CLASS A-2 NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR
"BLUE SKY" LAWS AND MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY TO (I) THE ISSUER
(UPON REDEMPTION THEREOF OR OTHERWISE) OR AN AFFILIATE OF THE ISSUER (AS
CERTIFIED BY THE ISSUER) OR (2) AN INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED
INVESTOR" AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D
PROMULGATED UNDER THE SECURITIES ACT THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY
IN THE FORM SPECIFIED IN THE INDENTURE, TO THE EFFECT THAT IT IS AN
INSTITUTIONAL ACCREDITED INVESTOR ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE
ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE
INSTITUTIONAL ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS
FIDUCIARY CAPACITY) (3) SO LONG AS THIS CLASS A-2 NOTE IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A TO A PERSON THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY
IN THE FORM SPECIFIED IN THE INDENTURE, TO THE EFFECT THAT SUCH PERSON IS A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A), ACTING FOR ITS OWN
ACCOUNT, OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED
INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE, OR TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, , OR (4) IN A TRANSACTION OTHERWISE
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION, IN
EACH SUCH CASE, IN COMPLIANCE WITH THE INDENTURE AND ALL APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION: PROVIDED,
THAT, IN THE CASE OF CLAUSE (4), THE TRUSTEE OR THE ISSUER MAY REQUIRE AN
OPINION OF COUNSEL TO THE EFFECT THAT SUCH TRANSFER MAY BE EFFECTED WITHOUT
REGISTRATION UNDER THE SECURITIES ACT, WHICH OPINION OF COUNSEL, IF SO REQUIRED,
SHALL BE ADDRESSED TO THE ISSUER AND THE TRUSTEE AND SHALL BE SECURED AT THE
EXPENSE OF THE HOLDER. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF THE
EXEMPTION PROVIDED BY RULE 144A FOR RESALES OF THIS CLASS A-2 NOTE.

                                      A-1
<PAGE>

THE PRINCIPAL OF THIS CLASS A-2 NOTE IS PAYABLE IN INSTALLMENTS AND SUBJECT TO
DECREASES AS SET FORTH HEREIN AND IN THE INDENTURE. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS CLASS A-2 NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

THIS CLASS A-2 NOTE AMENDS AND RESTATES THE CLASS A-2 TERM NOTE, DATED AS OF
JULY 13, 2007 IN THE ORIGINAL PRINCIPAL AMOUNT OF UP TO $60,000,000.00 ISSUED BY
THE ISSUER UNDER THE INDENTURE (THE "ORIGINAL NOTE"), AND IS NOT A NOVATION OF
THE ORIGINAL NOTE.

THE CLASS A-2 NOTE REGISTRAR SHALL NOT REGISTER ANY TRANSFER OR EXCHANGE OF THIS
CLASS A-2 NOTE TO THE EXTENT THAT UPON SUCH TRANSFER OR EXCHANGE THERE WOULD BE
MORE THAN TEN (10) PERSONS REFLECTED ON THE NOTE REGISTER AS CLASS A-2
NOTEHOLDERS.

                              FOLIO FUNDING II, LLC
                               CLASS A-2 TERM NOTE

FOLIO FUNDING II, LLC, a Delaware limited liability company (herein referred to
as the "ISSUER"), for value received, hereby promises to pay to
[________________] (the "CLASS A-2 NOTEHOLDER"), or its registered assigns, such
Class A-2 Noteholder's pro rata portion (based on the Percentage Interest
reflected on the face of this Class A-2 Note) of the principal sum of SIXTY
MILLION DOLLARS ($60,000,000.00) or, if less, the Holders pro rata portion
(based on the Percentage Interest reflected on the face of this Class A-2 Note)
of the aggregate unpaid principal amount outstanding under all of the Class A-2
Notes (whether or not shown on the schedule attached hereto (or such electronic
counterpart maintained by the Trustee), which amount shall be payable in the
amounts and at the times set forth in Section 2.8(b) of the Indenture (in each
case based on the applicable Percentage Interest). The Issuer will pay interest
on the Holder's pro rata portion of the Class A-2 Invested Amount at the Class
A-2 Note Interest Rate. Such interest shall be due and payable on each
Settlement Date until the principal of this Class A-2 Note is paid or made
available for payment, to the extent funds will be available from the Collection
Account processed from and including the preceding Settlement Date to but
excluding each such Settlement Date in respect of (a) an amount equal to
interest accrued for the related Interest Period, which will be equal to the sum
of the products, for each day during the related Interest Period, of (i) the
Class A-2 Note Interest Rate for such date during the Interest Period, (ii) the
Class A-2 Invested Amount as of the close of business on such date divided by
360 and (iii) the applicable Percentage Interest, plus (b) an amount equal to a
pro rata portion of any accrued and unpaid Class A-2 Noteholders' Interest
Carryover Shortfall with respect to prior Interest Periods, with interest on the
amount of such Class A-2 Noteholders' Interest Carryover Shortfall at the Class
A-2 Note Interest Rate from the first Business Day of the related Interest
Period. The Issuer may, at its option, prepay the Class A-2 Invested Amount, in
whole or in part, at any time pursuant to Section 10.1 of the Indenture.
Following the occurrence of an Event of Default, the Trustee (acting upon the
written direction of the Majority Noteholders) may declare the Class A-2
Invested Amount to be immediately due and payable at par, together with accrued
interest thereon, in accordance with Section 5.2 of the Indenture. Principal of
and interest on this Class A-2 Note shall be paid in the manner specified on the
reverse hereof.

                                      A-2
<PAGE>

The principal of and interest on this Class A-2 Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. This Class A-2 Note does not
represent an interest in, or an obligation of CPS or any affiliate of CPS other
than the Issuer.

Reference is made to the further provisions of this Class A-2 Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Class A-2 Note. Although a summary of certain provisions of
the Indenture are set forth below and on the reverse hereof and made a part
hereof, this Class A-2 Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to the
interests, rights, benefits, obligations, proceeds and duties evidenced hereby
and the rights, duties and obligations of the Seller and the Trustee. A copy of
the Indenture may be requested from the Trustee by writing to the Trustee at:
Wells Fargo Bank, National Association, 6th & Marquette, MAC N9311-161,
Minneapolis, Minnesota 55479, Attention: Corporate Trust Services, -- Asset
Backed Administration. To the extent not defined herein, the capitalized terms
used herein have the meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the Trustee
whose name appears below by manual signature, this Class A-2 Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                            [Signature page follows.]

                                      A-3
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date: [_____________]                   FOLIO FUNDING II, LLC

                                        By:      _______________________________
                                        Name:    _______________________________
                                        Title:   _______________________________

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is the Class A-2 Note issued under the within-mentioned Indenture.

                                     WELLS FARGO BANK, NATIONAL
                                     ASSOCIATION, not in its
                                     individual capacity, but
                                     solely as Trustee

                                     By: _______________________________________
                                     Authorized Signature

                                      A-4
<PAGE>

                       REVERSE OF THE CLASS A-2 TERM NOTE

This Class A-2 Note is the duly authorized Class A-2 Note of the Issuer,
designated as its Class A-2 Term Note (herein called the "CLASS A-2 NOTE"),
issued under (i) the Amended and Restated Indenture, dated as of July 10, 2008
(such Indenture, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with the terms thereof, is herein called the
"INDENTURE"), among the Issuer, Citigroup Financial Products, Inc., as
administrative agent (the "ADMINISTRATIVE AGENT") and Wells Fargo Bank, National
Association, a national banking association, as trustee (the "TRUSTEE", which
term includes any successor Trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights and obligations thereunder of the Issuer, the Trustee, the
Administrative Agent and the Class A-2 Noteholders. The Class A-2 Note is
subject to all terms of the Indenture. All terms used in this Class A-2 Note
that are defined in the Indenture, as amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof, shall have the
meanings assigned to them in or pursuant to the Indenture, as so amended,
supplemented or otherwise modified.

"SETTLEMENT DATE" means, the 18th day of each calendar month or, if such 18th
day is not a Business Day, the next Business Day.

The Class A-2 Notes are payable in the amounts and at times set forth in Section
2.8(b) of the Indenture. Notwithstanding the foregoing, if a Principal Coverage
Ratio Violation has occurred or an Event of Default shall have occurred and be
continuing then, in certain circumstances, principal on the Class A-2 Note may
be paid earlier, as described in the Indenture.

Payments of interest on this Class A-2 Note due and payable on each Settlement
Date, together with the installment of principal then due, if any, and any
payments of principal made on any Business Day in respect of any prepayments, to
the extent not in full payment of this Class A-2 Note, shall be made by wire
transfer to the Holder of record of this Class A-2 Note (or any predecessor
Class A-2 Note) on the Note Register as of the close of business on each Record
Date. Any reduction in the principal amount of this Class A-2 Note (or any
predecessor Class A-2 Note) effected by any payments made on any date shall be
binding upon all future Holders of this Class A-2 Note and of any Class A-2 Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not noted thereon. Final payment of principal (together with
any accrued and unpaid interest) on this Class A-2 Note will be paid to the
Class A-2 Noteholders only upon presentation and surrender of this Class A-2
Note at the Corporate Trust Office for cancellation by the Trustee.

The Issuer shall pay interest on overdue installments of interest at the Class
A-2 Note Interest Rate (calculated for this purpose using the Class A-2 Default
Applicable Margin) to the extent lawful.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-2 Note may be registered on the Note
Register upon surrender of this Class A-2 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly

                                      A-5
<PAGE>

endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Issuer and the Registrar duly executed by the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Class
A-2 Notes of authorized Percentage Interest and in the same aggregate Percentage
Interest will be issued to the designated transferee or transferees. No service
charge will be charged for any registration of transfer or exchange of this
Class A-2 Note, but the transferor may be required to pay a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any such registration of transfer or exchange.

The obligations of the Issuer under the Indenture, this Class A-2 Note and the
other Basic Documents shall be full recourse obligations of the Issuer.
Notwithstanding the foregoing, except as provided for in the Guaranty, the Class
A-2 Noteholder, by its acceptance of this Class A-2 Note, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer or the Trustee on the Class A-2 Notes, under the
Indenture, any other Basic Document or any certificate or other writing
delivered in connection herewith or therewith, against (i) the Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director, employee or
agent of the Issuer or the Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer or the Trustee or of any successor or assign
of the Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Trustee has no such obligations
in its individual capacity) and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity. Nothing contained in this
Section shall limit or be deemed to limit any obligations of the Issuer, the
Purchaser or the Seller hereunder or under any other Basic Document, as
applicable, which obligations are full recourse obligations of the Issuer, the
Purchaser and the Seller.

Each Class A-2 Noteholder, by its acceptance of this Class A-2 Note, covenants
and agrees that by accepting the benefits of the Indenture that such Class A-2
Noteholder will not institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Class A-2
Note, the Indenture or the Basic Documents.

Prior to the due presentment for registration of transfer of this Class A-2
Note, the Trustee and any agent of the Trustee may treat the Person in whose
name the Class A-2 Note (as of the applicable Record Date) is registered as the
owner hereof for all purposes, whether or not the Class A-2 Note be overdue, and
neither the Issuer, the Trustee nor any such agent shall be affected by notice
to the contrary.

It is the intent of the Issuer and the Class A-2 Noteholders that, for Federal,
State and local income and franchise tax purposes, this Class A-2 Note will
evidence indebtedness of the Issuer secured by the Collateral. Each Class A-2
Noteholder, by its acceptance of the Class A-2 Note, agrees to treat the Class
A-2 Note for Federal, State and local income and franchise tax purposes as
indebtedness of the Issuer.

                                      A-6
<PAGE>

The Indenture permits in certain circumstances, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Administrative Agent and the
Class A-2 Noteholders under the Indenture at any time by the Issuer with the
prior written consent of the Administrative Agent and the Majority Noteholders.
The Indenture also contains provisions permitting the Administrative Agent
(acting upon the written direction of the Majority Noteholders) to waive
compliance by the Issuer with certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Administrative Agent shall
be conclusive and binding upon the current Class A-2 Noteholders and all future
Class A-2 Noteholders and of any Class A-2 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-2 Note.

The term "ISSUER" as used in this Class A-2 Note includes any successor to the
Issuer under the Indenture.

This Class A-2 Note is issuable only in registered form in Percentage Interests
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-2 Note and the Indenture shall be construed in accordance with the
law of the State of New York, without reference to its conflict of law
provisions (other than Section 5-1401 of the General Obligations Law), and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such law.

No reference herein to the Indenture and no provision of this Class A-2 Note or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Class
A-2 Note at the times, place, and rate, and in the coin or currency herein
prescribed, subject to any duty of the Issuer to deduct or withhold any amounts
as required by law, including any applicable U.S. withholding taxes.

                                      A-7
<PAGE>
<TABLE>
<S>     <C>

                                         DECREASES

====================================================================================================
                                                       Class A-1
                Unpaid                                    Note
               Principal                                Interest   Interest Period   Notation Made
    Date        Amount        Decrease       Total        Rate     (if applicable)        By
====================================================================================================

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====================================================================================================
</TABLE>

                                      A-8
<PAGE>

                                   ASSIGNMENT

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

_______________________

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

unto ___________________________________________________________________________
                         (name and address of assignee)

the within Class A-2 Note and all rights thereunder, and hereby irrevocably
constitutes and appoints______________________, attorney, to transfer said Class
A-2 Note on the books kept for registration thereof, with full power of
substitution in the premises.

Dated: ________________________              __________________________________*
                                                    Signature Guaranteed:

_______________________________              ___________________________________

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

                                      A-9

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