Document:

THIRD AMENDMENT TO SERVICING AGREEMENT

      THIS THIRD  AMENDMENT  TO  SERVICING  AGREEMENT,  dated as of May 16, 2006
(this "Amendment"), is among:

            (i) CONN FUNDING II, L.P., as the Issuer (the "Issuer");

            (ii) CAI, L.P., as the Servicer (the "Servicer"); and

            (iii) WELLS FARGO BANK, NATIONAL ASSOCIATION (successor by merger to
      Wells Fargo Bank  Minnesota,  National  Association),  as the Trustee (the
      "Trustee").

                                   BACKGROUND

A.    Reference is made to (i) the Servicing Agreement, dated as of September 1,
      2002,  among  the  Issuer,  the  Servicer  and the  Trustee  (as  amended,
      restated,  supplemented or otherwise modified through the date hereof, the
      "Agreement"),  (ii) the Base  Indenture,  dated as of  September  1, 2002,
      between  the Issuer and the  Trustee  (the  "Base  Indenture"),  (iii) the
      Series  2002-A  Supplement,  dated as of  September  1, 2002,  between the
      Issuer  and the  Trustee  (the  "2002-A  Supplement")  and (iv) the Series
      2002-B  Supplement,  dated as of September 1, 2002, between the Issuer and
      the Trustee (the "2002-B  Supplement")  (each of the Base  Indenture,  the
      2002-A  Supplement  and  the  2002-B  Supplement,  as  amended,  restated,
      supplemented  or  otherwise   modified   through  the  date  hereof,   and
      collectively,  the  "Indenture").  Capitalized  terms used  herein but not
      otherwise  defined  herein  have  the  meanings  assigned  thereto  in the
      Agreement or the Indenture.

B.    The definition of "Post Office Box" in the Servicing  Agreement  indicates
      that there is only one post office box, number 1687, to which Obligors may
      make  payments  in  respect  of  Receivables,  whereas  Exhibit  E to  the
      Servicing  Agreement  indicates  that there is a second  post  office box,
      number  3845,   to  which   Obligors  may  make  payments  in  respect  of
      Receivables.

C.    The  Servicer  believes  that the  relocation  of the Post Office Box from
      Beaumont, Texas, a city prone to hurricanes and tropical storms that could
      result in  prolonged  disruption  to mail  service and thus a delay in the
      processing  of  Collections,  into a region  less likely to  experience  a
      hurricane or tropical  storm that would result in a  significant  delay in
      receipt  of mail  service is  consistent  with its  duties  under  Section
      2.02(b) of the Servicing Agreement, which requires the Servicer to service
      and administer the  Receivables  by employing such  procedures  (including
      collection  procedures)  and degree of care, in each case  consistent with
      prudent industry standards, as are customarily employed by the Servicer in
      servicing and  administering  contracts and notes owned or serviced by the
      Servicer comparable to the Receivables.

D.    Pursuant to Section 7.01(a) of the Agreement, an amendment may be effected
      to the Servicing  Agreement without the consent of any Noteholders to cure
      any ambiguity and to correct or supplement any provisions in the Servicing
      Agreement  which  may be  inconsistent  with any other  provisions  in the
      Servicing Agreement.

<PAGE>

E.    Whereas  the  definition  of Post Office Box in the  Servicing  Agreement,
      which  requires  that the Post  Office  Box be  number  1687  (located  in
      Beaumont,  Texas), is both ambiguous (as Exhibit E indicates that there is
      an additional post office box) and inconsistent  with the terms of Section
      2.02(b) of the Servicing  Agreement (as the Servicer has  determined  that
      its duties as  Servicer  require  it to move the Post  Office Box out of a
      region  susceptible  to delayed mail service as a result of hurricanes and
      tropical storms).

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

      SECTION 1. Amendment to the Agreement.  The defined term "Post Office Box"
is hereby amended and restated as follows:

      "Post Office Box" means, collectively, post office box 77704-1687 and post
      office box 77704-3845, and, upon notice to Trustee, each other post office
      box opened and maintained by the Issuer or the Servicer for the receipt of
      Collections  from  Obligors  and  governed by a Post Office Box  Agreement
      reflecting that such post office box is in the name of the Issuer,  as any
      such post  office  boxes may be closed  from time to time by the  Servicer
      with prior written notice to the Trustee (provided that (i) there shall at
      all times be at least one post  office  box open to  receive  Collections,
      (ii) the  Servicer  takes  customary  and  prudent  procedures  to  notify
      Obligors to make payments to such post office box and (iii) the closing or
      opening of any post office box is consistent  with the servicing  standard
      set forth in Section 2.02(b)(ii)).

      SECTION 2.  Conditions  to  Effectiveness.  This  Amendment  shall  become
effective as of the date hereof upon the  execution  and delivery to the Trustee
of this Amendment by each of the parties hereto.

      SECTION 3. Representations and Warranties. Each of the Issuer and Servicer
represents and warrants upon and as of the effectiveness of this Amendment that:

      (a) no event or  condition  has  occurred  and is  continuing  which would
constitute a Servicer Default or would constitute a Servicer Default but for the
requirement that notice be given or time elapsed or both;

      (b)  after  giving  effect  to this  Amendment,  its  representations  and
warranties  set forth in the  Agreement and the other  Transaction  Documents to
which it is a party are true and correct as of the date  hereof,  as though made
on and as of such date (except to the extent such representations and warranties
relate  solely to an earlier  date and then as of such earlier  date),  and such
representations  and  warranties  shall continue to be true and correct (to such
extent) after giving effect to the transactions contemplated hereby; and

      (c) this Amendment will not adversely  affect in any material  respect the
interests of any Noteholder or any Enhancement Provider.

      SECTION  4.  Effect of  Amendment;  Ratification.  Except as  specifically
amended hereby,  the Agreement is hereby ratified and confirmed in all respects,
and all of its  provisions  shall  remain in full force and  effect.  After this
Amendment  becomes  effective,  all references in the Agreement (or in any other
Transaction Document) to "the Servicing Agreement", "this Agreement",  "hereof",
"herein",  or words of similar effect,  in each case referring to the Agreement,
shall be deemed to be  references  to the  Agreement  as  amended  hereby.  This
Amendment  shall  not be deemed to  expressly  or  impliedly  waive,  amend,  or
supplement any provision of the Agreement other than as  specifically  set forth
herein.

                                       2
<PAGE>

      SECTION 5.  Counterparts.  This Amendment may be executed in any number of
counterparts  and by  different  parties  on  separate  counterparts,  and  each
counterpart shall be deemed to be an original,  and all such counterparts  shall
together constitute but one and the same agreement.

      SECTION  6.  Governing  Law.  This  Amendment  shall be  governed  by, and
construed in accordance with, the internal laws of the State of New York without
regard to any  otherwise  applicable  conflict  of laws  principles  (other than
Section 5-1401 of the New York General Obligations Law).

      SECTION 7.  Successors and Assigns.  This Amendment  shall be binding upon
and shall  inure to the  benefit  of the  parties  hereto  and their  respective
successors and assigns.

      SECTION 8. Section  Headings.  The various  headings of this Amendment are
inserted for convenience only and shall not affect the meaning or interpretation
of this Amendment or the Agreement or any provision hereof or thereof.

         [REMAINDER OF PAGE INTENTIONALLY BLANK; SIGNATURE PAGES FOLLOW]

                                       3
<PAGE>

      IN WITNESS  WHEREOF,  the parties have executed  this  Amendment as of the
date first written above.

                                        CONN FUNDING II, L.P., as Issuer

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

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

                                        CAI, L.P., as Servicer

                                        By:    Conn Appliances, Inc.,
                                               its general partner

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

                                        WELLS FARGO BANK, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity, but solely as Trustee

                                        By:    /s/ Kristen L. Puttin
                                               ---------------------------------
                                        Name:  Kristen L Puttin
                                        Title: Corporate Trust Officer

                                       4
<PAGE>

The undersigned,  as the sole holder of the Series 2002-A Variable Funding Asset
Backed  Floating Rate Notes of Conn Funding II, L.P., does hereby consent to the
Third Amendment to Servicing  Agreement  dated May 16, 2006,  among Conn Funding
II, L.P., CAI, LP and Wells Fargo Bank, National Association.

THREE PILLARS FUNDING CORPORATION

By:    /s/ Doris J. Hearn
       -----------------------------------

Name:  Doris J. Hearn
       -----------------------------------

Title: Vice President
       -----------------------------------FOURTH AMENDMENT TO SERVICING AGREEMENT

      THIS FOURTH AMENDMENT TO SERVICING AGREEMENT,  made effective as of August
1, 2006 (this "Amendment"), is among:

            (i) CONN FUNDING II, L.P., as the Issuer (the "Issuer");

            (ii) CAI, L.P., as the Servicer (the "Servicer"); and

            (iii) WELLS FARGO BANK, NATIONAL ASSOCIATION (successor by merger to
      Wells Fargo Bank  Minnesota,  National  Association),  as the Trustee (the
      "Trustee").

                                   BACKGROUND

A.    Reference is made to (i) the Servicing Agreement, dated as of September 1,
      2002,  among  the  Issuer,  the  Servicer  and the  Trustee  (as  amended,
      restated,  supplemented or otherwise modified through the date hereof, the
      "Agreement"),  (ii) the Base  Indenture,  dated as of  September  1, 2002,
      between  the Issuer and the  Trustee  (the  "Base  Indenture"),  (iii) the
      Series  2002-A  Supplement,  dated as of  September  1, 2002,  between the
      Issuer  and the  Trustee  (the  "2002-A  Supplement")  and (iv) the Series
      2002-B  Supplement,  dated as of September 1, 2002, between the Issuer and
      the Trustee (the "2002-B  Supplement")  (each of the Base  Indenture,  the
      2002-A  Supplement  and  the  2002-B  Supplement,  as  amended,  restated,
      supplemented  or  otherwise   modified   through  the  date  hereof,   and
      collectively,  the  "Indenture").  Capitalized  terms used  herein but not
      otherwise  defined  herein  have  the  meanings  assigned  thereto  in the
      Agreement or the Indenture.

B.    The parties  hereto (the "Amending  Parties")  desire to further amend the
      Agreement as reflected in this Amendment.

C.    Pursuant to Section 7.01(b) of the Agreement,  this amendment requires the
      consent of the Required Persons of each outstanding Series.

D.    Section 7.3 of the Note Purchase Agreement dated as of September 13, 2002,
      among the Issuer, Conn Appliances,  Inc., CAI, L.P., Three Pillars Funding
      LLC  (f/k/a  Three  Pillars  Funding  Corporation)  and  SunTrust  Capital
      Markets,  Inc., in addition to the consent of the Required  Persons of the
      Series  2002-A  Notes,  requires  that  the  Rating  Agency  Condition  be
      satisfied as a condition precedent to this Amendment.

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

      SECTION 1. Amendments to Section  2.04(e) of the Agreement.  The Agreement
is hereby amended by amending and restating  Section 2.04(e) of the Agreement as
follows:

      (e) for so long as CAI is the Servicer, the failure of Consolidated Parent
      to maintain Consolidated Net Worth of at least $150,000,000.

<PAGE>

      SECTION  2.  Amendment  to  Exhibit D of the  Agreement.  Exhibit D of the
Agreement is hereby  amended by amendment  and  restatement  of Exhibit D in its
entirety as attached hereto.

      SECTION 3.  Conditions  to  Effectiveness.  This  Amendment  shall  become
effective  as of August 1, 2006,  upon (i) the  execution  and  delivery  to the
Trustee of this Amendment by each of the parties hereto, (ii) the receipt of the
consent of the Required Persons of each Series and (iii) the satisfaction of the
Rating Agency Condition.

      SECTION 4. Representations and Warranties. Each of the Issuer and Servicer
represents and warrants upon and as of the effectiveness of this Amendment that:

      (a) no event or  condition  has  occurred  and is  continuing  which would
constitute a Servicer Default or would constitute a Servicer Default but for the
requirement that notice be given or time elapsed or both; and

      (b)  after  giving  effect  to this  Amendment,  its  representations  and
warranties  set forth in the  Agreement and the other  Transaction  Documents to
which it is a party are true and correct as of the date thereof,  as though made
on and as of such date (except to the extent such representations and warranties
relate  solely to an earlier  date and then as of such earlier  date),  and such
representations  and  warranties  shall continue to be true and correct (to such
extent) after giving effect to the transactions contemplated hereby.

      SECTION  5.  Effect of  Amendment;  Ratification.  Except as  specifically
amended hereby,  the Agreement is hereby ratified and confirmed in all respects,
and all of its  provisions  shall  remain in full force and  effect.  After this
Amendment  becomes  effective,  all references in the Agreement (or in any other
Transaction Document) to "the Servicing Agreement", "this Agreement",  "hereof",
"herein",  or words of similar effect,  in each case referring to the Agreement,
shall be deemed to be  references  to the  Agreement  as  amended  hereby.  This
Amendment  shall  not be deemed to  expressly  or  impliedly  waive,  amend,  or
supplement any provision of the Agreement other than as  specifically  set forth
herein.

      SECTION 6.  Counterparts.  This Amendment may be executed in any number of
counterparts  and by  different  parties  on  separate  counterparts,  and  each
counterpart shall be deemed to be an original,  and all such counterparts  shall
together constitute but one and the same agreement.

      SECTION  7.  Governing  Law.  This  Amendment  shall be  governed  by, and
construed in accordance with, the internal laws of the State of New York without
regard to any  otherwise  applicable  conflict  of laws  principles  (other than
Section 5-1401 of the New York General Obligations Law).

      SECTION 8.  Successors and Assigns.  This Amendment  shall be binding upon
and shall  inure to the  benefit  of the  parties  hereto  and their  respective
successors and assigns.

      SECTION 9. Section  Headings.  The various  headings of this Amendment are
inserted for convenience only and shall not affect the meaning or interpretation
of this Amendment or the Agreement or any provision hereof or thereof.

                                       2
<PAGE>

         IN WITNESS WHEREOF, the parties have entered into this Amendment to be
effective as of the date first written above.

                                        CONN FUNDING II, L.P., as Issuer

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

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

                                        CAI, L.P., as Servicer

                                        By:    Conn Appliances, Inc.,
                                               its general partner

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

                                        WELLS FARGO BANK, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity, but solely as Trustee

                                        By:    /s/ Jason Van Vleet
                                               ---------------------------------
                                        Name:  Jason Van Vleet
                                        Title: Assistant Vice President

                                       3
<PAGE>

The undersigned,  as the sole holder of the Series 2002-A Variable Funding Asset
Backed  Floating Rate Notes of Conn Funding II, L.P., does hereby consent to the
Fourth  Amendment to Servicing  Agreement  made  effective as of August 1, 2006,
among Conn Funding II, L.P., CAI, LP and Wells Fargo Bank, National Association.

THREE PILLARS FUNDING CORPORATION

By:    /s/ Doris J. Hearn
       ------------------------------

Name:  Doris J. Hearn
       ------------------------------

Title: Vice President
       ------------------------------

<PAGE>

                                    EXHIBIT D

                      Report of Independent Accountants on
                         Applying Agreed-Upon Procedures

Management
CAI, L.P., as Originator, Servicer, and Custodian
Conn Funding II, L.P., as Issuer
And
Wells Fargo Bank Minnesota,
National Association, as Trustee
And
SunTrust Capital Markets, Inc.
as Administrator for
Three Pillars Funding Corporation, as Conduit Purchaser

We have  performed  the  procedures  enumerated  on Exhibit A below,  which were
agreed to by the  management  of CAI,  L.P.  (the  Servicer),  Wells  Fargo Bank
Minnesota,  National  Association  (the Trustee),  and SunTrust Capital Markets,
Inc. (the  Administrator),  solely to assist the specified users,  including the
Servicer,  the  Administrator,  Conn Funding II, L.P.  (the  Issuer),  and Three
Pillars Funding Corporation (the Conduit Purchaser),  in their evaluation of the
Servicer's  obligations  during the  period  from ( ) to ( ),  inclusive,  under
Section  2.02(e) of the Servicing  Agreement  among Conn Funding II, L.P.,  CAI,
L.P.,  and  Wells  Fargo  Bank  Minnesota,  National  Association,  dated  as of
September 1, 2002, and in accordance with the Credit Agreement by and among Conn
Appliances,  Inc., and the other Borrowers Hereunder,  the Lenders Party Hereto,
and JP Morgan Chase Bank,  Bank of America,  N.A., and SunTrust Bank (the Credit
Agreement) and the Receivables Purchase Agreement dated as of September 1, 2002,
between  Conn Funding II, L.P.,  Conn  Appliances,  Inc.,  CAI,  L.P.,  and Conn
Funding I, L.P. (the Purchase Agreement), as amended through (            ) (the
Servicing  Agreement).   The  Servicer  is  responsible  for  the  accuracy  and
completeness of the accompanying  Monthly Report.  This  agreed-upon  procedures
engagement was conducted in accordance with attestation standards established by
the American Institute of Certified Public Accountants. The sufficiency of these
procedures is solely the responsibility of the parties specified in this report.
Consequently,  we  make  no  representation  regarding  the  sufficiency  of the
procedures described below either for the purpose for which this report has been
requested or for any other purpose.

<PAGE>

EXHIBIT A
Scope of Services, Limitations, Specific Additional Understandings

For the purposes of our report:

o     "Material  Exception" is defined by the  Administrator  as any  difference
      between  actual and reported  data in excess of three percent (3%) and not
      resulting  from the fact that the interest rate per the data file provided
      by the Servicer truncates the interest rate to two decimal places.

o     "Monthly  Report"  represents the Monthly  Servicer Report  (including the
      Monthly Fees and Expenses  section) and Monthly Report to Noteholders  and
      related  calculations,  represented by "Attachment I" to this  Agreed-Upon
      Procedures Report.

o     "FiServ"  represents the  Servicer's  loan  servicing  system  provided by
      Fiserv  Solutions,  Inc.,  an  independent  provider  of  data  processing
      outsourcing  capabilities  and related products and services for financial
      institutions.

The procedures will be as follows:

      Procedure # 1

Using a random  number  generator  select one Monthly  Report from the period of
August 2, 2005 through February 1, 2006, inclusive, and perform the following:

1.    Recompute the  mathematical  accuracy of the  calculations  in the Monthly
      Report.

2.    Agree  data  from the  Monthly  Report  to  client-prepared  analyses  and
      third-party  documents  as  provided  by  the  Servicer  and  used  in the
      compilation of the Monthly Report.

      Procedure # 2

Using a random number generator, select a sample of 100 receivable accounts from
the population of receivable accounts in the data file provided by the Servicer,
which the  Servicer  has  represented  to us includes  all  receivable  accounts
entered into from August 2, 2005  through  February 1, 2006.  For each  selected
receivable  account,  obtain  the  customer  account  detail  per FiServ and the
applicable retail installment  contract or revolving charge account  application
from the Servicer and perform the following:

1.    Compare the total of payments, principal balance, interest rate, financing
      fees,  term of loan,  and  social  security  number  from the data file to
      FiServ and the applicable retail installment  contract or revolving charge
      account  application..  For any accounts  where the  original  terms being
      reviewed on the  original  contract  are  different  than terms in FiServ,
      review related documented  evidence of the written authority of the change
      and the applicable  Section of the Company's Credit and Collection Policy,
      as identified by the Servicer,  or such other  document as provided by the
      Servicer authorizing the change;

                                       2
<PAGE>

2.    Observe  that the  applicable  retail  installment  contract or  revolving
      charge  account  application  included  in the  receivable  files had been
      stamped as required by Section 5.1. (n) of the Purchase Agreement; and

3.    Observe  that the  customer  contract  had been  segregated  and stored as
      required by the Servicing Agreement.

      Procedure # 3

Inquire of the Servicer  whether the Post Office Box  Agreement,  as required by
the Servicing Agreement, remains in place and is in effect.

      Procedure # 4

1.    Using a random number generator, select 15 business days during the period
      from  August 2, 2005  through  February  1, 2006,  and  compare  the Daily
      Transfer Schedule of Transfers To/ (From) the Concentration Account to the
      applicable  funds transfer  authorization to determine if the Servicer had
      transferred  all collections to the Conn's  Collection  Account within two
      business days of receipt,  in accordance with Section 2.02(c) (iii) of the
      Servicing Agreement.

2.    Review the applicable bank  statements  noting that they correspond to the
      depository  accounts  contemplated  in Article 5 of the Base Indenture and
      the Series A and B  Supplements.  Obtain  evidence  that the  Servicer has
      determined the depository  institution has a certificate of deposit rating
      of at least P-1 or better by Moody's.

      Procedure # 5

Haphazardly select two Transfer Days as defined by Section 5.15(a) of the Series
A Supplement  and 5.15(a) of the Series B Supplement  and 5.4 (a) and 5.4 (b) of
the Base Indenture.  For each of these days,  obtain copies of the  instructions
given to the Trustee for the  allocation of  collections  to the Finance  Charge
Account and compare them to the allocations as detailed in the Monthly  Servicer
Report.

      Procedure # 6

On one day during the semi-annual  period, on an unannounced  basis,  physically
observe the  gathering  and  processing  of payments at the  Servicer's  Payment
Processing  Center and select an unbiased  sample of 50 collections  received on
that day.

1.    Observe  that the 50  collections  selected  for our  sample  are all Mail
      Payments  or  In-Store  Payments  as  defined  by  Section  2.02(c) of the
      Servicing Agreement.

                                       3
<PAGE>

2.    Observe that the payments are all addressed  either to the Post Office Box
      as defined in the Servicing  Agreement or to one of the Conn's Appliances,
      Inc.'s business locations.

      Procedure # 7

Using a random number generator,  select a sample of 25 receivable accounts from
the population of receivable  accounts which have been Re-aged as of February 1,
2006 included in the data file provided by the Servicer,  which the Servicer has
represented to us includes all receivable  accounts entered into since inception
of the Purchase  Agreement  and  Servicing  Agreement  (both  September 1, 2002)
through  December  31,  2005,  and which had been  Re-aged as of the date of the
Monthly Report selected for testing in Procedure # 1. Have the Servicer identify
the program under which the accounts were most recently Re-aged. For each of the
25 receivable accounts selected:

1.    Based on the program  under which the  accounts  selected for testing were
      most recently Re-aged,  compare evidence of management's  approval for the
      Re-aging to the corresponding program required management approval.

2.    Compare the total  calculated  by the  Servicer for  receivables  extended
      beyond 12 months to the amount on Line 32, "Receivables extended beyond 12
      months," of the Monthly Report selected in Procedure 1 above.  Compare the
      total  calculated  by the  Servicer  for  receivables  extended by 7 to 12
      months to the amount on Line 33, "Receivables extended by 7 to 12 months,"
      of the Monthly Report,  and found such amount to be in agreement.  Compare
      the total  calculated by the Servicer for receivables  extended by up to 6
      months to the amount on Line 34, "Receivables extended by up to 6 months,"
      of the Monthly Report.

3.    For each installment account selected,  compare the original maturity date
      per the original retail installment  contract to the current maturity date
      (as of the date) per the FiServ account detail and recompute the number of
      months  Re-aged by  subtracting  the  original  term from the revised term
      included in the data file  provided by the  Servicer.  For each  revolving
      account selected,  divided the December 31, 2005,  account balance per the
      FiServ account detail by the current monthly payment amount  (December 31,
      2005) per the FiServ account detail,  then subtracted 30, to recompute the
      number of months Re-aged.

4.    Based on the number of months  Re-aged,  as recomputed  in 2. above,  note
      that the Servicer  included the  installment  or revolving  account in the
      proper aging bucket.

      Procedure #8

Using a random number generator,  select a sample of 25 receivable accounts from
the  population  of  receivable  accounts in the data file provided to us by the
Servicer,  which the Servicer  has  represented  to us includes  all  receivable
accounts  entered into since  inception of the Purchase  Agreement and Servicing
Agreement  (both  September 1, 2002)  through  February 1, 2006,  and which were
charged-off  during the period from August 2, 2005 through February 1, 2006. For
each of the 25 receivable accounts:

                                       4
<PAGE>

1.    Identify the reason for the  charge-off as indicated in the account detail
      per FiServ.

2.    Recompute  the number of days the contract was  contractually  past due at
      the time of the  charge-off  by  subtracting  the payment due date per the
      FiServ records from the charge-off  date per FiServ  records.  Recalculate
      the number of days the contract was past due and compare that  calculation
      to FiServ.

3.    Recompute  the number of days  between the last payment on the account and
      the date of the charge-off using the customer account details per FiServ.

      Procedure # 9

Using a random number generator,  select a sample of 25 receivable accounts from
the population of receivable accounts in the data file provided by the Servicer,
which the  Servicer  has  represented  to us includes  all  receivable  accounts
entered into since inception of the Purchase  Agreement and Servicing  Agreement
(both  September  1, 2002)  through  February  1, 2006,  and which are part of a
promotional  credit  program  during  the  period  from  August 2, 2005  through
February 1, 2006. For each of the 25 receivable accounts, compare the FICO Score
for such  obligor as  contained  in the credit  application  as  provided by the
Servicer,  to the score required by guideline of the promotional  credit program
established by the Servicer.

      Procedure # 10

Through review of an independent  third party's website,  Moodys.com,  note that
the issuing bank of any Servicer  Letters of Credit,  as contemplated in Section
5.10 of the Base  Indenture,  is rated, as of the date of the  verification,  at
least P-1, or equivalent thereof, by Moody's.

      Procedure # 11

On one day during the semi-annual  period, on an unannounced  basis,  physically
observe the gathering and processing of returned mail at the Servicer's  Payment
Processing  Center and select an unbiased  sample of 50 pieces of returned  mail
received on that day.

1.    Observe that the 50 pieces of returned  mail  selected for our sample were
      addressed to the Obligor of a Receivable  as defined in Section 1.1 of the
      Base Indenture dated September 1, 2002, as it may have been amended.

2.    Identify  the  purpose  of  the  mailing  to  the  Obligor,  identify  the
      procedures  performed  and the results of the  Servicer  in  locating  and
      changing the address on the Servicer's electronic records.

                                       5
<PAGE>

      Procedure # 12

After  January  31, 2007  confirm the  occurrence  of the  Servicer's  use of an
independent  address  verification  service  for a Retail  Installment  Contract
Receivables  with a balance  greater than zero,  as of the file date selected by
the  Servicer  and sample the  results of the  verification  by  performing  the
following procedures:

1.    Obtain the  statistics  of the data file  provided by Servicer,  which the
      Servicer represents was all Retail Installment Contract Receivables with a
      balance  greater than zero as of the date  submitted,  to the  independent
      verification service and note the number of accounts submitted.

2.    Review the billing provided by the independent verification service noting
      the number of accounts  processed  and data  responses  received  from the
      Servicer.

3.    Obtain  the  data  file  of  responses   received  from  the   independent
      verification  service and compare the record count to count  obtained from
      the billing  data above,  and which the  Servicer  has  represented  to us
      includes all responses received.

4.    Using a random number generator,  select a sample of 25 responses from the
      population  of responses in the data file  provided by the  Servicer.  For
      each  of the 25  responses  determine  the  nature  of the  response  from
      documentation  provided  by the  independent  verification  service to the
      Servicer,  and the action taken by the Servicer on each by a review of the
      electronic records of the Servicer.

                                       6

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