Document:

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                                                                   Exhibit 10.14

            THIRD AMENDED AND RESTATED SECURITY AND COLLATERAL AGENCY
                                   AGREEMENT

         THIS THIRD AMENDED AND RESTATED SECURITY AND COLLATERAL AGENCY
AGREEMENT (the "Security Agreement") is made and dated as of March 31, 2003 by
and among PULTE MORTGAGE LLC , a Delaware limited liability company (the
"Company"), BANK ONE, NA, a national banking association, having its main office
in Chicago, Illinois, acting in its capacity as administrative agent for the
Lenders from time to time parties to the Credit Agreement (as defined below) (in
such capacity, the "Credit Agent"), and LASALLE BANK NATIONAL ASSOCIATION, as
collateral agent for the Secured Parties (as defined below) (in such capacity,
the "Collateral Agent").

                                    RECITALS

         A.       Pursuant to that certain Fourth Amended and Restated Revolving
Credit Agreement of even date herewith, by and among the Company, the Credit
Agent and certain other Lenders named therein (the "Credit Agreement"), the
Lenders agreed to extend credit to the Company on the terms and subject to the
conditions set forth therein. Capitalized terms not otherwise defined herein are
used with the same meanings as in the Credit Agreement.

         B.       As a condition precedent to the effectiveness of the Credit
Agreement, the Credit Agent has required the execution and delivery of this
Security Agreement in order to, among other things, create a first priority
perfected security interest in the Collateral in favor of the Lenders, the
Credit Agent and the Collateral Agent (collectively, the "Secured Parties") to
secure payment of the Secured Obligations.

         C.       This Security Agreement amends and restates in its entirety
that certain Second Amended and Restated Security and Collateral Agency
Agreement dated as of March 31, 2000 by and among the Company and LaSalle Bank
National Association (as successor collateral agent to Bank One Trust Company).

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

                                   AGREEMENTS

         1.       Appointment of Collateral Agent. Each Lender has, pursuant to
the terms of the Credit Agreement, appointed the Collateral Agent to act as
secured party, agent, bailee and custodian for the exclusive benefit of the
Secured Parties with respect to the Collateral. The Collateral Agent hereby
accepts such appointment and agrees to maintain and hold, or cause to be
maintained and held, all Collateral at any time delivered to it or any of its
subagents as secured party, agent, bailee and custodian for the exclusive
benefit of the Secured Parties. The Collateral Agent and the Company agree that
the Collateral Agent is acting and will act with respect to the Collateral for
the exclusive benefit of the Secured Parties and is not, and shall not at any
time in the future be, subject, with respect to the Collateral, in any manner or
to any extent, to the direction or control of the Company except as expressly
permitted hereunder and under the other Loan Documents. The Collateral Agent
agrees to act in accordance with this

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Security Agreement and in accordance with any written instructions properly
delivered pursuant hereto. Under no circumstances shall the Collateral Agent
deliver, or cause to be delivered, possession of Collateral to the Company
except in accordance with the express terms of this Security Agreement or the
other Loan Documents.

         2.       Delivery and Categorization of Collateral.

                  (a)      Mortgage Loans. The Company shall deliver Collateral
Transmittals to the Collateral Agent from time to time identifying Mortgage
Loans that the Company intends to include in Collateral by delivering to the
Collateral Agent the Required Mortgage Documents (as described on Schedule A
attached hereto) for such Mortgage Loans. Such delivery shall be made prior to
inclusion of such Mortgage Loans in Collateral, other than for AP Mortgages
identified in the Collateral Transmittal and covered by an Agreement to Pledge.
The Collateral Agent shall review the Required Mortgage Documents in accordance
with the review steps described on Exhibit 1 hereto.

                  (b)      Agreement to Pledge. The Collateral Agent, upon
receipt of a Collateral Transmittal describing the AP Mortgages to be covered by
an AP Notice and an Agreement to Pledge as of that date, shall (subject to the
eligibility requirements set forth in the Credit Agreement) include such AP
Mortgages as Eligible Collateral in the Collateral Value Determination (as
defined Paragraph 6(a) below). The Company shall deliver the Required Mortgage
Documents for each such AP Mortgage not later than the ninth (9th) Business Day
after the date such AP Mortgage is first so included as a Eligible Collateral.
When a delivery of what purports to be the Required Mortgage Documents for an AP
Mortgage is received by the Collateral Agent on a given Business Day, such AP
Mortgage shall no longer be treated as an AP Mortgage for purposes of the
Borrowing Base Sublimits, and shall be included in any Collateral Value
Determination or other calculation involving the value of the Borrowing Base on
such Business Day prior to the Collateral Agent's review thereof on the
assumption that such AP Mortgage is Eligible Collateral. The Collateral Agent
shall review such Required Mortgage Documents in accordance with the steps
described on Exhibit 1 hereto before the opening of business of the Collateral
Agent on the next succeeding Business Day and shall make a decision on the
eligibility of the applicable Mortgage Loan for that Business Day.

                  (c)      Securities. The Company may, from time to time,
deliver Securities to the Collateral Agent or an Approved MBS Custodian and
shall provide evidence that such Securities are either (a) in a certificated
form, with the certificates evidencing such Securities being delivered to the
Collateral Agent or such Approved MBS Custodian, or (b) in book entry or
uncertificated form with evidence that the Collateral Agent or such Approved MBS
Custodian has been identified as the nominal owner of such Securities in the
records of a Federal Reserve Bank or other institution authorized by the
applicable Federal Agency to maintain ownership records in respect of such
Securities.

                  (d)      Gestation Collateral. The Company may, from time to
time, deliver a request to the Collateral Agent (or an Affiliate of the
Collateral Agent) acting in its capacity as pool custodian, for the initial
certification of Pledged Mortgages for purposes of creating a pool of Mortgage
Loans to support the issuance of a FHLMC, FNMA or GNMA Security. Such request
shall be in writing in the form of Exhibit 3.A to this Security Agreement, and
such

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Pledged Mortgages shall constitute Gestation Mortgage Loans on the Business Day
immediately following the Business Day on which such Pledged Mortgages are
certified by the Collateral Agent (or an Affiliate of the Collateral Agent) in
accordance with the standards of the applicable Federal Agency.

                  (e)      Pledged Servicing. The Company shall deliver to the
Collateral Agent fully executed copies of the Acknowledgment Agreements with
FNMA and FHLMC. In the event the Credit Agent or the Required Lenders request
that Acknowledgement Agreements with GNMA be obtained, the Company shall deliver
to the Collateral Agent fully executed copies of Acknowledgement Agreements with
GNMA covering all Pledged Servicing with GNMA.

                  (f)      Servicing Sale Receivables. The Company may, in
connection with a sale of Servicing Agreements from the Company to a Servicing
Purchaser, pledge the Servicing Sale Receivables due in connection with such
sale to the Collateral Agent for the benefit of the Secured Parties as
Collateral. If the Company so pledges Servicing Sale Receivables to the
Collateral Agent, the Company shall (i) deliver to the Credit Agent and the
Collateral Agent a complete executed copy of the related purchase agreement,
(ii) assign its rights to such Pledged Servicing Sale Receivables to the
Collateral Agent for the benefit of the Secured Parties pursuant to an
assignment in form and content satisfactory to the Credit Agent, and (iii) cause
the Servicing Purchaser of the applicable sold Servicing Agreements to execute
an agreement in form and content satisfactory to the Credit Agent pursuant to
which the Servicing Purchaser shall agree to (A) pay such Pledged Servicing Sale
Receivables directly to the Collateral Agent for the benefit of the Secured
Parties, and (B) provide simultaneous written notice to the Credit Agent and the
Collateral Agent of any claims made against or notices given to the Company
which would constitute an offset to or reduction in the amount of such Pledged
Servicing Sale Receivables.

                  (g)      Identification of Collateral. All Mortgage Loans and
Securities at any time delivered to the Collateral Agent hereunder shall be held
by the Collateral Agent in a fire resistant vault, drawer or other suitable
depositary maintained in accordance with Federal Agency standards and controlled
solely by the Collateral Agent, conspicuously marked to show the respective
interests of the Secured Parties therein and not commingled with any other
assets or property of, or held by, the Collateral Agent. Accordingly, if
(pursuant to Paragraph 7(b) below) the Collateral Agent receives a shipping
request pursuant to which the Collateral Agent is to retain physical possession
of the applicable Mortgage Loans or Securities as an agent for any Person other
than the Secured Parties, the Collateral Agent shall physically separate such
Mortgage Loans or Securities from the remainder of the Collateral and shall
execute any transmittal letters required under Paragraph 7(b) below.

         3.       Grant of Security Interest. The Company hereby pledges and
assigns to the Collateral Agent for the benefit of the Secured Parties and
grants to the Collateral Agent for the benefit of the Secured Parties, a first
priority security interest in, the property described in Paragraph 4 below
(collectively and severally, the "Collateral"), to secure payment of the Secured
Obligations. Furthermore, each Agreement to Pledge shall create a security
interest in favor of the Collateral Agent for the benefit of the Secured Parties
in the AP Mortgages identified therein. By delivering an Agreement to Pledge,
the Company represents and warrants that each AP Mortgage identified therein
constitutes an Eligible Mortgage Loan. The Company

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agrees that while it is in possession of any Required Mortgage Documents for an
AP Mortgage, it will hold same in trust and as agent and bailee for the
Collateral Agent for the benefit of the Secured Parties, without authority to
make any other disposition thereof, or of the proceeds thereof. The Company
assumes the responsibility for loss or destruction of any such Required Mortgage
Documents until the same are delivered to the Collateral Agent.

         Unless so directed by the Credit Agent when a Default has occurred and
is continuing, the Collateral Agent shall not record the assignment of mortgage
or deed of trust delivered in connection with any Pledged Mortgage.

         4.       Collateral. The Collateral shall consist of all right, title
and interest of the Company of every kind and nature in and to all of the
following property, assets and rights of the Company wherever located, whether
now existing or hereafter arising, and whether now or hereafter owned or
acquired by or accruing or owing to the Company, and all proceeds and products
thereof (including all proceeds in the Settlement Account and Cash and
Collateral Account and Custodian Settlement Accounts from time to time):

                  (a)      all Pledged Mortgages;

                  (b)      all Pledged Securities;

                  (c)      any commitments or other agreements issued by any
private mortgage insurer or by the FHA or VA to insure or guarantee any Pledged
Mortgage;

                  (d)      all commitments of FNMA, FHLMC or other Persons to
purchase Pledged Items from the Company or exchange Securities with the Company
for Pledged Items;

                  (e)      any options to sell or purchase Securities, future
contracts, or any other interest rate protection products which directly or
indirectly protect the Company against reductions in value of such Pledged Items
due to changes in mortgage interest rates;

                  (f)      the Settlement Account and Cash and Collateral
Account, the Funding Account and any Custodian Settlement Accounts and any
amounts standing to the credit of the Settlement Account and Cash and Collateral
Account and any Custodian Settlement Accounts then in existence with Approved
MBS Custodians, as described in Paragraph 7(c) below;

                  (g)      all cash and Cash Equivalents held by the Credit
Agent or Collateral Agent as security for the Secured Obligations;

                  (h)      all Pledged Servicing;

                  (i)      all Pledged Servicing Sale Receivables;

                  (j)      all property related to the foregoing, including,
without limitation, the right to service Pledged Mortgages while owned by the
Company, all accounts and general intangibles of whatsoever kind so related and
all documents or instruments delivered to the Credit Agent or the Collateral
Agent in respect of any Pledged Item, including, without

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limitation, the right to receive all insurance proceeds and condemnation awards
which may be payable in respect of the premises encumbered by any Pledged
Mortgage; and

                  (k)      all proceeds and products of any of the foregoing.

         5.       Collateral Agent's Review of Collateral. Upon any receipt of
Required Mortgage Documents for any Mortgage Loan, the Collateral Agent shall
review the same and verify that:

                  (a)      All Required Mortgage Documents relating to such
Mortgage Loan appear regular on their face (as determined by the Collateral
Agent in its reasonable discretion) and are in the Collateral Agent's
possession; and

                  (b)      The statements set forth on Exhibit 1 hereto are
accurate and complete in all material respects.

If the Collateral Agent notes any exception in the review described in
subparagraph (a) or (b) above, the Collateral Agent shall not include such item
as Eligible Collateral in its next Collateral Value Determination (as defined in
Paragraph 6(a) below) delivered to the Credit Agent. In the event that the
Company has been requested by the Credit Agent or the Collateral Agent to
deliver the "Additional Required Mortgage Documents" (as described on Schedule B
attached hereto) with respect to any Mortgage Loan, the Collateral Agent shall
review and verify such Additional Required Mortgage Documents consistent with
the obligations of the Collateral Agent above. However, the Collateral Agent
shall have no obligation to verify that (i) the amount of any fire and extended
coverage insurance policy meets the requirements set forth on Schedule B, or
(ii) the loan to value ratio for any mortgage note is in excess of 80% (and thus
whether private mortgage insurance is required), but shall be entitled to rely
upon the determinations of the Company with respect to these matters.

         6.       Collateral Value Determination; Determination Assumptions.

                  (a)      On each Business Day the Collateral Agent shall
compute the value of the Borrowing Base (taking into account all Borrowing Base
Sublimits), the Warehouse Borrowing Base and the Gestation Borrowing Base
(collectively, the "Borrowing Bases") and notify the Credit Agent thereof (a
"Collateral Value Determination") by telephone and by sending a facsimile copy
of a report ("Borrowing Base Report") in the form of Schedule C hereto (or such
other form as may be mutually agreed to by the Collateral Agent and the Credit
Agent) prior to 10:00 a.m. (Chicago time).

                  (b)      In making any Collateral Value Determination or other
calculation involving a determination of the value of the Borrowing Bases, the
Collateral Agent shall be permitted to rely, without independent investigation
of the correctness thereof, on:

                           (1)      The information supplied by the Company to
         the Collateral Agent on the related Collateral Transmittal, with
         respect to the net acquisition cost (including any discounts and
         excluding any servicing released premium) of any Mortgage Loan, the
         unpaid principal balance of any Mortgage Loan as of the Pledge Date
         therefor, and the weighted average purchase price (expressed as a
         percentage of par) committed to under all Approved Investor Commitments
         which could cover such Mortgage Loan (which

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         weighted average purchase price shall be recalculated by the Company
         and reported to the Collateral Agent weekly);

                           (2)      The most recent information supplied by the
         Company to the Collateral Agent with respect to the number of days by
         which payments on any Mortgage Loan constituting Collateral are past
         due;

                           (3)      The written information supplied by the
         Company to the Collateral Agent with respect to a determination as to
         whether amounts received in the Cash and Collateral Account represent
         the purchase price paid for a specific Mortgage Loan or Security and,
         consequently, whether the Mortgage Collateral Value of such Mortgage
         Loan or MBS Value of such Security should be removed from such
         calculation;

                           (4)      The most recent information supplied by the
         Credit Agent to the Collateral Agent with respect to the amount of the
         then current Aggregate Commitment, which information shall be reported
         by the Credit Agent to the Collateral Agent by 9:30 a.m. (Chicago time)
         on each Business Day;

                           (5)      Any information supplied by the Credit
         Agent, the Company, or any other custodian of any of the Collateral, to
         the Collateral Agent unless the Collateral Agent has actual knowledge
         that such information is untrue or unreliable; and

                           (6)      The information supplied by the Company or
         the Credit Agent with respect to the Aggregate Servicing Value of the
         Eligible Mortgage Servicing Rights and Eligible Servicing Sale
         Receivables.

                  (c)      No later than 3:30 p.m. (Chicago time) on each
Business Day (the "Information Cutoff Time") the Company shall deliver to the
Collateral Agent a list of Pledged Items (other than, so long as no Default
exists, Securities or Gestation Mortgage Loans being pooled and sold, the sale
of which is addressed in Paragraph 6(d) below) that have been sold to investors
(or, in the case of Servicing Sale Receivables, the applicable Servicing Sale
Receivables to be received on such day) (the "Paid Collateral Listing"),
together with appropriate detail identifying the specific wire that represents
the proceeds of each Pledged Item on the Paid Collateral Listing. Upon receipt
of the Paid Collateral Listing by the Information Cutoff Time, the Collateral
Agent will review all wires received in the Cash and Collateral Account on or
before 3:00 p.m. (Chicago time) (the "Wire Cutoff Time") and confirm that the
wires detailed in the Paid Collateral Listing have been received in the Cash and
Collateral Account and that the actual amounts match those shown in the Paid
Collateral Listing (the "Paid Reconciliation Process"). Any Pledged Item
identified on the Paid Collateral Listing that cannot be reconciled by the
Collateral Agent will remain in the Borrowing Base and the associated settlement
proceeds will remain in the Cash and Collateral Account until such time as the
Collateral Agent receives the necessary information from the Company to complete
the Paid Reconciliation Process. On or before 4:30 p.m. (Chicago time), the
Collateral Agent will remove the reconciled Pledged Items from the Borrowing
Base, and notify the Credit Agent of (i) the amount of reconciled proceeds
("Reconciled Non-Security Proceeds") and (ii) an updated Collateral Value
Determination reflecting the removal of such Pledged Items. No later than 4:00
p.m. (Chicago time), the Collateral Agent will notify the Company of the amount
of Reconciled Non-Security

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Proceeds and, so long as the updated Borrowing Base exceeds the total unpaid
balance of the outstanding Loans and no Default exists, authorize the Credit
Agent to transfer such amounts from the Cash and Collateral Account to the
Company's operating account or as otherwise instructed by the Company. If the
Borrowing Base does not exceed the total unpaid balance of the outstanding
Loans, the Collateral Agent shall authorize the Credit Agent to apply the
necessary amount of such Reconciled Non-Security Proceeds against the
outstanding Loans in accordance with Section 8.4 of the Credit Agreement so that
the Borrowing Base equals or exceeds the total unpaid balance of the outstanding
Loans and transfer the balance of such proceeds to the Company as set forth
above. During the continuance of a Default, all proceeds shall be applied in
accordance with the terms of Section 8.4 of the Credit Agreement.

                  (d)      The procedures set forth in this Paragraph 6(d) will
apply for sales of Gestation Mortgage Loans and/or Securities on Pool Settlement
Days, so long as no Gestation Default has occurred or would result therefrom (in
which case the procedures described in Paragraph 6(c) shall apply). During the
continuance of a Default, all pool settlement proceeds shall be applied in
accordance with the terms of Section 8.4 of the Credit Agreement. For purposes
of this agreement, "Pool Settlement Days" shall be defined as any day on which a
pool of Gestation Mortgage Loans is funded by the applicable settlement agent.
No later than 2:00 p.m. (Chicago time) on each Pool Settlement Day the Company
shall deliver to the Collateral Agent a list of pooled Gestation Mortgage Loans
that support Securities which are expected to settle on such day (the "Pool Out
Report"), together with appropriate detail identifying the specific wire that
represents the proceeds of each pool that the Company expects to receive no
later than the close of business on that same day. On or before 1:00 p.m.
(Chicago time), upon notice from the Company that a payment is scheduled to be
made that day, the Credit Agent will, pursuant to Section 2.20 of the Credit
Agreement, pay down any outstanding Loans designated by the Company to be repaid
based on the expectation that the wire for these proceeds (the "Pool Proceeds")
will be received. At or about 4:30 p.m. (Chicago time), the Collateral Agent
will authorize the Credit Agent to repay itself the amounts advanced pursuant to
the preceding sentence with the applicable amount of the Pool Proceeds at or
about 4:30 p.m. (Chicago time). The Collateral Agent will notify the Company if
any expected Pool Proceeds have not been received by 3:30 p.m. (Chicago time).
Any shortfall still owed to the Credit Agent resulting from a negative variance
between the total expected Pool Proceeds and the actual Pool Proceeds received
on or before 4:30 p.m. (Chicago time), shall be covered by a Swingline Advance
equal to the shortfall amount. Such Swingline Advance will be made automatically
without need for a request by the Company and will accrue interest at the
Alternate Base Rate. Should the required amount exceed the Swingline
availability, the remaining unpaid amount advanced by the Credit Agent (the
"Overadvance") shall accrue interest at the Alternate Base Rate. On or before
the time at which the first determination of the Borrowing Base is prepared on
the next Business Day, the Collateral Agent will: (i) confirm that the remaining
expected Pool Proceeds were received in the Cash and Collateral Account and that
the actual amounts of all the Pool Proceeds match the amounts on the Pool Out
Report, and (ii) remove from the Borrowing Base the Gestation Mortgage Loans
which were pooled and sold. If all or a portion of the expected remaining Pool
Proceeds are not received in the Cash and Collateral Account on or before the
time at which the Borrowing Base is first prepared on the next Business Day, the
Gestation Mortgage Loans related to the expected remaining Pool Proceeds will
remain in the Borrowing Bases as long as they remain eligible. The Credit Agent
will use all Pool Proceeds received from the Cash and Collateral Account to
repay the unpaid amounts advanced by the Credit Agent

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above, and then shall apply any remaining Pool Proceeds ("Excess Pool Proceeds")
as set forth in Section 8.4 of the Credit Agreement. To the extent that the Pool
Proceeds are insufficient to repay all unpaid Overadvances, the Credit Agent
shall request repayment of such funds from the Lenders, together with interest,
in accordance with Section 2.20 of the Credit Agreement.

         7.       Handling of Collateral; Settlement Account.

                  (a)      From time to time until otherwise notified in writing
by the Required Lenders, the Collateral Agent is hereby authorized to release
documentation relating to Mortgage Loans to the Company against a trust receipt
executed by the Company in the form of Exhibit 2 hereto (with such documents to
be returned within 15 days as set forth in such Exhibit 2, failing which the
applicable Mortgage Loan shall cease to be Eligible Collateral). The Collateral
Agent will maintain all original trust receipts in a vault, drawer or other
suitable depositary with a one hour fire rating maintained in accordance with
Federal Agency requirements and controlled solely by Collateral Agent. The
Company hereby represents and warrants that any request by the Company for
release of Collateral under this subparagraph (a) shall be solely for the
purposes of correcting clerical or other non-substantial documentation problems
in preparation of returning such Collateral to the Collateral Agent for ultimate
sale or exchange and that the Company has requested such release in compliance
with all terms and conditions of such release set forth herein and in the Credit
Agreement.

                  (b)      Prior to the occurrence of a Default, upon delivery
by the Company to the Collateral Agent of a shipping request substantially in
the form of that attached hereto as Exhibit 3.B, the Collateral Agent will
transmit, or cause to be transmitted, Mortgage Loans and Securities held by it
or any Approved MBS Custodian as directed by the Company as follows:

                           (1)      If the transmittal is of documentation for
         Mortgage Loans or Securities in the possession of the Collateral Agent
         or an Approved MBS Custodian in connection with the sale thereof to an
         Approved Investor, such transmittal will be under cover of a
         transmittal letter substantially in the form of that attached hereto as
         Exhibit 4 (or such other form as may be approved by the Credit Agent or
         required under any Federal Agency program pursuant to which the
         relevant Mortgage Loans or Securities are being shipped) , subject to
         modification of such Exhibit 4 pursuant to Paragraph 7(g) hereof at the
         request of the Credit Agent. The Company is hereby authorized to direct
         the Collateral Agent from time to time to transmit the documentation
         for Pledged Mortgage Loans being sold to an Approved Investor along
         with the documentation for other mortgage loans pledged for the benefit
         of other lenders and being sold to the same Approved Investor pursuant
         to a single transmittal letter in the form of Exhibit 4 which includes
         the optional language bracketed in Exhibit 4 (the "Joint Transmittal
         Letter").

                           (2)      If the transmittal is of documentation for
         Mortgage Loans or Securities in connection with the shipment to a
         custodian or trustee (including any Affiliate of the Collateral Agent)
         in connection with the formation of a mortgage pool supporting a
         Security (any such Security secured or otherwise supported by any such
         Mortgage Loan or Security being referred to herein as a
         "Warehouse-Related Security"), such transmittal will be under cover of
         a transmittal letter substantially in the form of that attached hereto
         as Exhibit 5 (or such other form as may be required if the Security is

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         being issued under any Federal Agency program), subject to modification
         of such Exhibit 5 pursuant to Paragraph 7(g) hereof at the request of
         the Credit Agent, and, in addition, will be conditioned upon the facts
         that:

                                    (i)      If the Warehouse-Related Security
                  is being issued under a Federal Agency program, there has been
                  delivered for the Warehouse-Related Security such form as may
                  be required under the Federal Agency program pursuant to which
                  such Warehouse-Related Security is being issued (which form
                  shall name the Collateral Agent or an Approved MBS Custodian
                  (as defined below) as the subscriber and the Person to whom
                  the Warehouse-Related Security is to be delivered);

                                    (ii)     If the Warehouse-Related Security
                  is being issued pursuant to a program other than a Federal
                  Agency program, there has been delivered to and acknowledged
                  by the trustee and collateral agent or custodian for the
                  underlying mortgage pool a letter in form substantially
                  similar to Exhibit 5 and reasonably acceptable to the
                  Collateral Agent;

                                    (iii)    The Person to whom such
                  Warehouse-Related Security is to be delivered upon issuance in
                  exchange for the Mortgage Loans or Securities being shipped is
                  either (a) a Person approved by the Collateral Agent and the
                  Credit Agent which has agreed to hold such Warehouse-Related
                  Security and the proceeds of any sale or other disposition
                  thereof as custodian, agent and bailee for the benefit of the
                  Secured Parties pursuant to a custodial agreement
                  substantially in the form of that attached hereto as Exhibit 6
                  (a "Custodial Agreement"), or (b) the Credit Agent, the
                  Collateral Agent or an Affiliate thereof (any Person acting in
                  such capacity being referred to herein as an "Approved MBS
                  Custodian");

                                    (iv)     There has been delivered to the
                  Approved MBS Custodian a letter in the form attached to the
                  Custodial Agreement (Exhibit A to Exhibit 6 hereto); and

                                    (v)      At the request of the Credit Agent
                  pursuant to Paragraph 7(g) hereof, any Warehouse-Related
                  Security delivered to an Approved MBS Custodian pursuant to
                  subparagraphs (i) through (iv) shall be in a face amount of
                  not less than the amount of the Borrowing Base which is
                  attributable to the Mortgage Loans so delivered in exchange
                  for such Warehouse-Related Security.

In no event shall the Collateral Agent have any obligation to obtain written
acknowledgement of receipt from the addressee of any transmittal letter or other
communication sent by the Collateral Agent hereunder.

                  (c)      All amounts payable on account of the sale of Pledged
Items (including, but not limited to, a sale pursuant to a repurchase agreement)
will be instructed to be paid directly by the purchaser to the Cash and
Collateral Account or, in the case of Pledged Securities delivered to an
Approved MBS Custodian, to a demand deposit account maintained with such

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Approved MBS Custodian (a "Custodian Settlement Account") and, thereafter, to
the Cash and Collateral Account as provided in the applicable Custodial
Agreement. Pursuant to Paragraph 3 above the Company has granted a security
interest in and lien upon the Cash and Collateral Account and in all Custodian
Settlement Accounts and in any and all amounts at any time held therein as
collateral security for the benefit of the Secured Parties. This Paragraph 7(c)
shall constitute notice to the Collateral Agent and any Approved MBS Custodian
of such security interest pursuant to the Uniform Commercial Code of all
relevant jurisdictions and any other law or regulation requiring such notice.
This Paragraph 7(c) shall further constitute irrevocable notice to the
Collateral Agent and any Approved MBS Custodian that the accounts referred to in
Paragraph 4(f) above (other than the Funding Account) are "no access" accounts
to the Company and the Collateral Agent except to the extent expressly permitted
hereunder. The Collateral Agent shall hold such security interest in and lien
upon the accounts referred to in Paragraph 4(f) above and all funds at any time
held therein for the benefit of the Secured Parties with all rights of a secured
party under the Uniform Commercial Code of all relevant jurisdictions.

                  (d)      Prior to the occurrence of a Default, the Collateral
Agent and any Approved MBS Custodian shall take such steps as they may be
reasonably directed from time to time by the Company in writing which are not
inconsistent with the provisions of this Security Agreement and the other Credit
Documents and which the Company deems necessary to enable the Company to perform
and comply with Approved Investor Commitments and with other agreements for the
sale or other disposition in whole or in part of Mortgage Loans and Securities.

                  (e)      The Collateral Agent may deliver any item of
Collateral to the Company or any other Person in accordance with the provisions
of the Credit Documents; provided, however, that the Collateral Agent shall not
deliver and shall incur no liability to the Company or any other Person for
refusing to deliver any item of Collateral to the Company or any other Person
(other than under existing Approved Investor Commitments) while a Default exists
if the Collateral Agent has been directed to refrain from so delivering
Collateral by the Required Lenders.

                  (f)      In addition to the releases of Collateral provided
for in the preceding subparagraphs of this Paragraph 7, upon the request of the
Company delivered from time to time to the Credit Agent and the Collateral
Agent, the Collateral Agent shall, with the prior written approval of the Credit
Agent, release Collateral specified in such notice from the lien of this
Security Agreement. The Credit Agent shall give its approval of such release if,
but only if, (i) at the time of such release no Default exists and no notice of
a Default has been issued that has not been cured, (ii) any payment under
Section 2.11 of the Credit Agreement which may be required as a result of such
release has been made so that the release of such Collateral will not create a
violation of any Lending Sublimit or Borrowing Base Sublimit, and (iii) if the
Collateral to be released is Pledged Servicing, such release is made in
connection with the sale of such Pledged Servicing by the Company; provided,
however, that the Collateral Agent may release Collateral while a Default exists
or while a notice of Default has been issued but not cured if such release is in
connection with the sale of Collateral pursuant to an existing Approved Investor
Commitment with the proceeds of such sale being deposited in the Settlement
Account. The Collateral Agent is authorized to execute and deliver to the
Company, on behalf of the Secured Parties, such UCC-3 partial release forms or
other evidence as may be required of any release permitted hereunder.

                                     - 10 -
<PAGE>

                  (g)      Notwithstanding the provisions of Paragraph 7(b)
above, the Credit Agent may, at any time, require that the following
modifications be made to all of its transmittal letters or only to transmittal
letters to certain Approved Investors designated by the Credit Agent:

                                    (i)      The second sentence of the second
                  full paragraph of the form of whole loan sale transmittal
                  letter attached hereto as Exhibit 4 shall be deleted and
                  replaced with the following sentence:

                         "Each of the Mortgage Loans is subject to a security
                         interest in favor of LaSalle Bank National Association
                         (the "Collateral Agent") on behalf of the Secured
                         Parties, which security interest shall be automatically
                         released upon your remittance of an amount equal to the
                         greater of (1) the purchase price for such Mortgage
                         Loans (as set forth on the schedule attached hereto),
                         and (2) $________, which is the mortgage collateral
                         value assigned by the Collateral Agent to such Mortgage
                         Loans. Such amount shall be remitted by wire transfer
                         to the following account:",

                  in which case the amount to be inserted in the blank in clause
                  two of such revised provision shall be an amount equal to the
                  amount of the Borrowing Base which is attributable to the
                  Mortgage Loans being delivered pursuant to the transmittal
                  letter;

                                    (ii)     The second sentence of the second
                  full paragraph of the form of warehouse related security
                  transmittal letter attached hereto as Exhibit 5 shall be
                  deleted and replaced with the following sentence:

                           "Each of the Mortgage Loans is subject to a security
                           interest in favor of LaSalle Bank National
                           Association (the "Collateral Agent") for the benefit
                           of the Secured Parties, which security interest shall
                           be automatically released upon the issuance of the
                           Warehouse-Related Security in accordance with the
                           terms of the prescribed GNMA, FNMA or FHLMC form
                           enclosed herewith, which form shall name a person
                           designated by the Collateral Agent as the person to
                           whom the Warehouse-Related Security is to be
                           delivered and require that the principal amount of
                           the Warehouse Related Security be in an amount not
                           less than $______________, which is the mortgage
                           collateral value assigned by the Collateral Agent to
                           such Mortgage Loans.",

                  in which case the amount to be inserted in the blank in such
                  revised provision shall be an amount equal to the amount of
                  the Borrowing Base which is attributable to the Mortgage Loans
                  being delivered pursuant to the transmittal letter.

         8.       Reports. The Collateral Agent shall deliver (a) the Borrowing
Base Report to the Credit Agent at the times and in the manner set forth in
Paragraph 6(a) above, (b) a Borrowing Base Report to the Company and each Lender
on or before the seventh day of each month, and (c) to the Credit Agent and any
Lender which makes a written request therefor, such other reports and
information as any Lender may from time to time reasonably request. In preparing
any such reports the Collateral Agent shall be entitled to rely, without
independent investigation

                                     - 11 -
<PAGE>

(other than the review steps described on Exhibit 1 hereto), on information
supplied to the Collateral Agent by the Company. The Collateral Agent may, with
the approval of the Company and the Credit Agent, alter the format of any report
required hereunder, provided such modified report contains the same information
previously furnished in the unmodified report.

         9.       No Reliance. The Collateral Agent shall not be responsible to
any Secured Party for any recitals, statements, representations or warranties
contained herein or in any other Credit Document; or for the execution,
effectiveness, genuineness, validity, enforceability, collectability, accuracy,
completeness or sufficiency of this Security Agreement or any other Credit
Document or instruments executed and delivered, or which could have been
executed or delivered, in connection with this Security Agreement or the other
Credit Documents, including, without limitation, the attachment, creation,
effectiveness or perfection of the security interests granted or purported to be
granted hereunder in and to the Collateral.

         10.      Intentionally Omitted.

         11.      Availability of Documents. The Secured Parties and their
agents, accountants, attorneys and auditors (each an "Inspecting Party") will be
permitted from time to time upon not less than three Business Days' written
notice to the Collateral Agent and the Company, and at such time as may be
mutually acceptable to such Inspecting Party, the Collateral Agent and the
Company to examine (to the extent permitted by applicable law) the files,
documents, records and other papers in the possession or under the control of
the Collateral Agent relating to any or all Collateral and to make copies
thereof. Any such activity will be at the cost and expense of the Secured Party
requesting such access, except that following the occurrence of a Default, all
reasonable out-of-pocket costs and expenses associated with the exercise by a
Secured Party of its rights under this Paragraph 11 shall be promptly paid by
the Company upon demand of the Credit Agent.

         12.      Representations and Warranties. The Company hereby represents
and warrants that: (a) the Company is the sole owner of the Collateral (or, in
the case of after-acquired Collateral, at the time the Company acquires rights
in the Collateral, will be the sole owner thereof), subject only to the rights
of Approved Investors under the Approved Investor Commitments; (b) except for
security interests in favor of the Collateral Agent for the benefit of the
Secured Parties hereunder, no Person has (or, in the case of after-acquired
Collateral, at the time the Company acquires rights therein, will have) any
right, title, claim or interest in, against or to the Collateral and, in any
event, so long as the Collateral Agent complies with the procedures relating to
possession of Collateral set forth in this Security Agreement, the Collateral
Agent shall have a perfected, first priority security interest therein for the
benefit of the Secured Parties; (c) no consent of any Person is required that
has not been obtained for the granting of the security interests provided for
herein, nor will any consent be required for the Collateral Agent to exercise
its rights under this Security Agreement in accordance with the terms of this
Security Agreement; (d) to the best of the Company's knowledge, all information
heretofore, herein or hereafter supplied to the Collateral Agent or to any
Lender by or on behalf of the Company with respect to the Collateral is or will
be accurate and complete; (e) the Approved Investor Commitments covering such
Collateral may be collaterally assigned to the Collateral Agent as described
herein; and (f) each Mortgage Loan and Security shall be, at all dates included
in the computation of the value of the Borrowing Bases, Eligible Collateral.

                                     - 12 -
<PAGE>

         13.      Covenants of the Company. The Company hereby agrees: (a) to
procure, execute and deliver from time to time any endorsements, assignments,
financing statements and other writings reasonably deemed necessary or
appropriate by the Collateral Agent or the Credit Agent to perfect, maintain and
protect the Collateral Agent's security interest hereunder and the priority
thereof and to deliver promptly to the Collateral Agent all originals of any
Collateral or proceeds thereof consisting of chattel paper or instruments; (b)
not to surrender or lose possession of (other than to the Collateral Agent),
sell, encumber, or otherwise dispose of or transfer, any Collateral or right or
interest therein other than shipment of Mortgage Loans and Securities under
Approved Investor Commitments and as otherwise permitted under Paragraph 7 above
and as otherwise permitted by the Credit Agreement; (c) except as otherwise
contemplated in any Custodial Agreement, not to grant to any Federal Agency or
Approved Investor any other security interest in any Collateral, or otherwise
acknowledge the creation of any ownership rights of any Federal Agency or
Approved Investor with respect to any Collateral unless and until the Collateral
Agent has received the proceeds of such Collateral as described herein; (d) at
all times to account fully for and promptly to deliver to the Collateral Agent,
in the form received, all Collateral or proceeds thereof received, endorsed to
the Collateral Agent or in blank as appropriate and accompanied by such
assignments and powers, duly executed, as the Collateral Agent or the Credit
Agent shall reasonably request, and until so delivered all Collateral and
proceeds thereof shall be held in trust for the Collateral Agent for the benefit
of the Secured Parties, separate from all other property of the Company and
identified as the property of the Collateral Agent for the benefit of the
Secured Parties; (e) to keep accurate and complete records of the Collateral and
at any reasonable time and at the Company's expense, upon demand by the
Collateral Agent or the Credit Agent, to exhibit to and allow inspection of the
Collateral and the records, reports and information concerning the Collateral by
the Collateral Agent or Credit Agent (or Persons designated by the Collateral
Agent or Credit Agent); (f) to keep the records concerning the Collateral at the
location(s) set forth in Paragraph 25 below and not to remove the records from
such location(s) without the prior written consent of the Collateral Agent and
the Credit Agent; (g) not to materially modify, compromise, extend, rescind or
cancel any deed of trust, mortgage, note or other document, instrument or
agreement connected with any Mortgage Loan pledged under this Security Agreement
or any document relating thereto or connected therewith or consent to a
postponement of strict compliance on the part of any party thereto with any term
or provision thereof in any material respect (except to the extent (i) any such
action is permissible in accordance with Federal Agency rules and regulations,
(ii) the ability to sell any affected Mortgage Loans to an Approved Investor is
not thereby diminished, and (iii) the value of such Collateral is not thereby
diminished); (h) to keep the Collateral insured against loss, damage, theft, and
other risks customarily covered by insurance, and such other risks as the
Collateral Agent or the Credit Agent may reasonably request; (i) to do all acts
that a prudent investor would deem necessary or desirable to maintain, preserve
and protect the Collateral; (j) not knowingly to use or permit any Collateral to
be used unlawfully or in violation of any provision of this Security Agreement,
the Credit Agreement or any applicable statute, regulation or ordinance or any
policy of insurance covering the Collateral; (k) to pay (or require to be paid)
prior to their becoming delinquent all taxes, assessments, insurance premiums,
charges, encumbrances and liens now or hereafter imposed upon or affecting any
Collateral except as otherwise permitted in the Credit Agreement; (l) to notify
the Collateral Agent and the Credit Agent before any such change shall occur of
any change in the Company's name, identity or structure through merger,
consolidation or otherwise; (m) to appear in and defend, at the

                                     - 13 -
<PAGE>

Company's cost and expense, any action or proceeding which may affect its title
to or the Collateral Agent's interest for the benefit of the Secured Parties in
the Collateral; and (n) to comply in all material respects with all laws,
regulations and ordinances relating to the possession, operation, maintenance
and control of the Collateral. Notwithstanding the foregoing, (1) the
requirements of clauses (g), (k) and (m) shall not apply to any Collateral which
is not required to be included in the computation of the value of any of the
Borrowing Bases in order for the Company to be in compliance with the
requirements of the Credit Agreement unless failure to comply with the
requirements of said subparagraphs would have an adverse effect on the
Collateral which is included in such computation, and (2) the failure of the
Company to comply with its obligations under this Paragraph 13 with respect to
any Pledged Item shall cause such Pledged Item to cease to qualify as Eligible
Collateral.

         14.      Collection of Collateral Payments.

                  (a)      The Company shall, at its sole cost and expense, use
its best efforts to obtain payment, when due and payable, of all sums due or to
become due with respect to any Collateral ("Collateral Payments" or a
"Collateral Payment"), consistent with all requirements of law and contractual
obligations binding upon the Company. Upon the request of the Collateral Agent
while a Default exists, the Company will notify and direct any party who is or
might become obligated to make any Collateral Payment, to make payment thereof
to the Collateral Agent (or to the Company in care of the Collateral Agent) at
such address as the Collateral Agent may designate. The Company will reimburse
the Collateral Agent promptly upon demand for all out-of-pocket costs and
expenses, including reasonable attorneys' fees and litigation expenses, incurred
by the Collateral Agent in seeking to collect any Collateral Payment.

                  (b)      Following the occurrence of a Default, upon the
request of the Collateral Agent the Company will transmit and deliver to the
Collateral Agent, forthwith upon receipt and in the form received, all cash,
checks, drafts and other instruments for the payment of money (properly endorsed
where required so that such items may be collected by the Collateral Agent)
which may be received by the Company at any time as payment on account of any
Collateral Payment and if such request shall be made, until delivery to the
Collateral Agent, such items will be held in trust for the Collateral Agent for
the benefit of the Secured Parties and will not be commingled by the Company
with any of its other funds or property. Thereafter, the Collateral Agent is
hereby authorized and empowered to endorse the name of the Company on any check,
draft or other instrument for the payment of money received by the Collateral
Agent on account of any Collateral Payment if the Collateral Agent believes such
endorsement is necessary or desirable for purposes of collection.

                  (c)      The Company hereby agrees to indemnify, defend and
save harmless the Collateral Agent and its agents, officers, employees and
representatives from and against all reasonable liabilities and expenses on
account of any adverse claim asserted against the Collateral Agent relating to
any moneys received by the Collateral Agent on account of any Collateral Payment
(other than as a direct result of the gross negligence or willful misconduct of
the Collateral Agent) and such obligation of the Company shall continue in
effect after and notwithstanding the discharge of the Secured Obligations and/or
the release of the security interest granted in Paragraph 3 above.

                                     - 14 -
<PAGE>

         15.      Authorized Action by Collateral Agent. The Company hereby
irrevocably appoints the Collateral Agent as its attorney-in-fact to do (but the
Collateral Agent shall not be obligated to and shall incur no liability to the
Company or any third party for failure so to do) from time to time while a
Default exists, at the written request and direction of the Required Lenders,
any act which the Company is obligated by this Security Agreement to do, and to
exercise such rights and powers as the Company might exercise with respect to
the Collateral, including, without limitation, the right to (a) collect by legal
proceedings or otherwise and endorse, receive and receipt for all dividends,
interest, payments, proceeds and other sums and property now or hereafter
payable on or on account of the Collateral; (b) insure, process, service and
preserve the Collateral; (c) transfer the Collateral to the Collateral Agent's
own or its nominee's name; and (d) make any compromise or settlement, and take
any other action it deems advisable with respect to the Collateral.
Notwithstanding anything contained herein, in no event shall the Collateral
Agent be required to make any presentment, demand or protest, or give any
notice, and the Collateral Agent need not take any action to preserve any rights
against any prior party or any other person in connection with the Secured
Obligations or with respect to the Collateral.

         16.      Default and Remedies.

                  (a)      While a Default exists, the Collateral Agent shall at
the written request and direction of the Credit Agent on behalf of the Required
Lenders, without notice to or demand upon the Company: (i) foreclose or
otherwise enforce the Collateral Agent's security interest for the benefit of
the Secured Parties in the Collateral in any manner permitted by law or provided
for hereunder; (ii) sell or otherwise dispose of the Collateral or any part
thereof at one or more public or private sales or at any broker's board or on
any securities exchange, whether or not such Collateral is present at the place
of sale, for cash or credit or future delivery (provided that the Required
Lenders have approved the terms of any sale on credit or for future delivery)
and without assumption of any credit risk, on such terms and in such manner as
the Collateral Agent may determine; (iii) require the Company to assemble the
Collateral and/or books and records relating thereto and make such available to
the Collateral Agent at a place to be designated by the Collateral Agent; (iv)
enter into property where any Collateral or books and records relating thereto
are located and take possession thereof with or without judicial process; and
(v) prior to the disposition of the Collateral, prepare it for disposition in
any manner and to the extent the Collateral Agent deems appropriate. Whether or
not the Collateral Agent exercises any right given pursuant to this Paragraph
16, upon the occurrence of any Default, the Collateral Agent on behalf of the
Secured Parties shall have as to any Collateral all other rights and remedies
provided for herein and all rights and remedies of a secured party under the
Illinois Uniform Commercial Code and, in addition thereto and not in lieu
thereof, all other rights or remedies at law or in equity existing or conferred
upon the Collateral Agent on behalf of the Secured Parties by other
jurisdictions or other applicable law or given to the Collateral Agent on behalf
of the Secured Parties pursuant to any security agreement, other instrument or
agreement heretofore, now, or hereafter given as security for the Company's
obligations hereunder.

                  (b)      The Collateral Agent is authorized, at any such sale,
if it deems it advisable so to do, to restrict the prospective bidders or
purchasers to Persons who will represent and agree that they are purchasing for
their own account, for investment, and not with a view to the distribution or
sale of any of the Collateral. Upon any sale or other disposition pursuant to

                                     - 15 -
<PAGE>

this Security Agreement, the Collateral Agent shall have the right to deliver,
assign and transfer to the purchaser thereof the Collateral or portion thereof
so sold or disposed of and all proceeds thereof shall, as set forth in Paragraph
17 below, be promptly transmitted to the Credit Agent for allocation to the
Secured Parties in accordance with the Credit Agreement. Each purchaser at any
such sale or other disposition shall hold the Collateral free from any claim or
right of whatever kind, including any equity or right of redemption of the
Company, and the Company specifically waives (to the extent permitted by law)
all rights of redemption, stay or appraisal which it has or may have under any
rule of law or statute now existing or hereafter adopted. The Collateral Agent
shall give the Company only such notice and shall publish such notice as may be
required by the Illinois Uniform Commercial Code or by other applicable law of
the intention to make any such public or private sale or sale at broker's board
or on a securities exchange. Any such public sale shall be held at such time or
times within the ordinary business hours and at such place or places permitted
by the Illinois Uniform Commercial Code. At any such sale the Collateral may be
sold in one lot as an entirety or in separate parcels, as the Collateral Agent
may determine. The Collateral Agent may adjourn any public or private sale or
cause the same to be adjourned from time to time by announcement at the time and
place fixed for the sale, and such sale may be made at any time or place to
which the same may be so adjourned. In case of any sale of all or any part of
the Collateral on credit or for future delivery (the terms of which shall be
approved by the Required Lenders), (i) the Collateral so sold may be retained by
the Collateral Agent until the selling price is paid by the purchaser thereof,
(ii) none of the Secured Parties shall incur any liability in case of the
failure of such purchaser to take up and pay for the Collateral so sold, and
(iii) in case of any such failure, such Collateral may again be sold as provided
herein. Nothing contained in this Security Agreement shall prohibit any Lenders
from purchasing the Collateral at such sale.

                  (c)      The Company hereby appoints the Collateral Agent as
the Company's attorney-in-fact, effective as of the date of any Unmatured
Default (and during the continuance thereof) for the purpose of taking all
actions on behalf of the Company contemplated or required under the terms of the
Acknowledgement Agreements with respect to Pledged Servicing and executing any
instruments which the Collateral Agent may deem necessary or advisable to
accomplish the purposes hereof, which appointment as attorney-in-fact is
irrevocable and coupled with an interest. Without limiting the generality of the
foregoing, the Collateral Agent shall have the right and power to receive,
endorse and collect all checks made payable to the order of the Company
representing any payment on account of the principal of or interest on any of
the Mortgage Loans covered by such Pledged Servicing or on account of the terms
of the Servicing Agreements governing such Pledged Servicing and to give full
discharge for the same. Furthermore, notwithstanding anything herein to the
contrary, with respect to any Collateral covered by an executed Acknowledgement
Agreement, the Collateral Agent is authorized to carry out and comply with, and
the Company approves and acknowledges, all requirements regarding such a sale
set forth therein or as may otherwise be imposed by the counterparty to such an
Acknowledgement Agreement and agrees that such a sale in accordance with the
requirements of an Acknowledgement Agreement is commercially reasonable.

         17.      Disposition of Proceeds. "Net Proceeds" shall mean the
proceeds realized upon the sale or other disposition of any Collateral after
deducting therefrom the payment of the costs and expenses of such sale or
disposition, including (i) reasonable compensation to the Collateral Agent's and
Credit Agent's agents and counsel, and all expenses, liabilities and advances
made

                                     - 16 -
<PAGE>

or incurred by any Secured Party acting on instructions of the Required Lenders,
and (ii) with respect to the Pledged Servicing, the payment of any amounts due
by the Company to FNMA or FHLMC, as the case may be, as a condition to the
transfer of the Company's interest in any such Servicing Agreements pursuant to
the terms of such Servicing Agreements, including without limitation all amounts
described in the Acknowledgement Agreements. All such costs and expenses shall
be deducted from the proceeds directly related thereto. The Collateral Agent
shall distribute the Net Proceeds to the Credit Agent for the benefit of the
Secured Parties.

         18.      Waiver. No Secured Party shall incur any liability as a result
of the sale of the Collateral, or any part thereof, at any public or private
sale. The Company hereby waives any claims it may have against any Secured Party
arising by reason of the fact that the price at which the Collateral may have
been sold at such private sale was less than the price which might have been
obtained at a public sale or was less than the aggregate amount of the Secured
Obligations then outstanding.

         19.      The Collateral Agent.

                  (a)      Collateral Agent's Fee. Compensation of the
Collateral Agent for its services hereunder and reimbursement for any expenses
incurred by it in the performance of its duties hereunder shall be paid by the
Company pursuant to a separate fee schedule previously delivered by the
Collateral Agent to the Company (the "Fee Schedule"). The Collateral Agent shall
notify the Company of all extraordinary fees, costs and expenses of the
Collateral Agent directly relating to the Collateral Agent's performance of this
Security Agreement, and such extraordinary fees, costs and expenses shall be
paid promptly by the Company or, if already paid by the Collateral Agent, the
Company promptly shall reimburse the Collateral Agent therefor. For the purposes
of this provision, extraordinary fees, costs and expenses shall include all
fees, costs and expenses incurred by the Collateral Agent in performance of this
Security Agreement which are not otherwise expressly covered by the Fee
Schedule, including, without limitation, expenses of legal counsel to the
Collateral Agent and the fees and expenses of the Collateral Agent undertaking
any activity described in Paragraphs 14, 15 and 16 above or procedures related
to reviewing of documents listed on Schedule B or in furnishing any additional
reports and information reasonably requested by the Credit Agent or any Lender
pursuant to clause (c) of Paragraph 8 above.

                  (b)      Actions by the Collateral Agent. The obligations of
the Collateral Agent hereunder are only those expressly set forth herein. The
Collateral Agent shall be entitled to (but shall not be obligated to) take or
refrain from taking any discretionary powers or actions under this Security
Agreement or any other Credit Document unless and until the Collateral Agent
shall have received the written direction to take or refrain from taking such
action from the Required Lenders (or all of the Lenders with respect to actions
which require unanimous approval of the Lenders). The Collateral Agent shall not
be required to take any action hereunder if it shall reasonably determine that
by so doing it may incur criminal or civil liability.

                  (c)      Consultation with Experts. The Collateral Agent may
consult with legal counsel (who may be counsel for the Company), independent
public accountants and other experts selected by it and shall not be liable for
any action taken or omitted to be taken by it in good faith in accordance with
the advice of such counsel, accountants or experts; provided,

                                     - 17 -
<PAGE>

however, that the Collateral Agent shall consult counsel for the Company only
with regard to information about the Company and shall not request legal advice
from such counsel.

                  (d)      Liability of Collateral Agent.

                           (1)      Neither the Collateral Agent, its Affiliates
         nor any of its directors, officers, agents, or employees shall be
         liable for any action taken or not taken by it in connection herewith
         (i) with the consent or at the request of the Required Lenders or (ii)
         in the absence of its own gross negligence or willful misconduct.
         Furthermore, in no event shall the Collateral Agent or its Affiliates,
         directors, officers, agents, and employees be held liable for any
         special, indirect, punitive or consequential damages resulting from any
         action taken or omitted to be taken by it or them hereunder or in
         connection herewith even if advised of the possibility of such damages.

                           (2)      The Collateral Agent shall not incur any
         liability by acting in reliance upon any notice, consent, certificate,
         statement, or other writing (which may be a bank wire, telex or similar
         writing) or telephone communication believed by it to be genuine or, in
         the case of a writing, to be signed by the proper party or parties.

                           (3)      Except as provided in Paragraph 5 above, the
         Collateral Agent shall not be under a duty to examine into or pass upon
         the validity, effectiveness, genuineness or value of the Collateral or
         any other instrument or document furnished pursuant thereto or
         thereunder, and Collateral Agent shall be entitled to assume that the
         same are valid, effective and genuine in what they purport to be.

                  (e)      Indemnification. The Company agrees to indemnify and
hold the Collateral Agent and its directors, officers, agents, and employees
harmless against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses, or disbursements of any
kind or nature whatsoever, including reasonable attorneys' fees, that may be
imposed on, incurred by, or asserted against the Collateral Agent or its
affiliates, directors, officers, agents, or employees, in anyway relating to or
arising out of this Agreement or any action taken or not taken by the Collateral
Agent or its permitted successors and assigns under this Agreement unless such
liabilities, obligations, losses, damages, penalties, actions, judgments suits,
costs, expenses, or disbursements were imposed on, incurred by or asserted
against the Collateral Agent because of the breach by the Collateral Agent of
its obligations under this Agreement, which breach was caused by the gross
negligence, lack of good faith, or willful misconduct on the part of the
Collateral Agent or any of its affiliates, directors, officers, agents, or
employees. The foregoing indemnification shall survive any termination or
expiration of this Agreement or the resignation or removal of the Collateral
Agent. Subject to the limitations set forth below, the Lenders shall indemnify
the Collateral Agent (to the extent not reimbursed by the Company) against any
cost, expense (including reasonable counsel fees and disbursements), claim,
demand, action, loss or liability (except such as result from the Collateral
Agent's gross negligence or willful misconduct) that the Collateral Agent may
suffer or incur in connection with this Security Agreement or any action taken
or omitted by the Collateral Agent hereunder (the "Indemnified Amount"). Any
Indemnified Amount due to the Collateral Agent shall be paid by the Lenders pro
rata in accordance with their respective shares of the Secured Obligations

                                     - 18 -
<PAGE>

outstanding at the time the Collateral Agent incurred such liability. The
provisions of this Paragraph 19(e) shall survive the termination of this
Security Agreement.

                  (f)      Knowledge of Defaults. The Collateral Agent shall not
be deemed to have knowledge or notice of the occurrence of a Default unless the
Collateral Agent has received notice from a Secured Party or the Company
referring to a Credit Agreement or this Security Agreement describing such
Default and stating that such notice is a "Notice of Default." Following receipt
of a Notice of Default, the Collateral Agent shall assume that the Default is
continuing until the Collateral Agent receives written information to the
contrary from the Credit Agent.

                  (g)      Reports. The Collateral Agent may, at its option with
the approval of the Company and the Credit Agent, alter the format of any report
required hereunder, provided such modified report contains the same information
previously furnished in the unmodified report.

                  (h)      Other Transactions with Company. The Collateral Agent
and its Affiliates may accept deposits from, lend money to, and generally engage
in any kind of business with, the Company or any Subsidiary or Affiliate of the
Company as if it were not the Collateral Agent hereunder.

                  (i)      Resignation/Removal. The Collateral Agent may resign
at any time by giving 90 days prior written notice thereof to the Lenders and
the Company. The Collateral Agent also agrees to resign within 90 days after
written notice by the Company requesting the resignation of the Collateral Agent
provided that no Default has occurred and is continuing at the time of such
request. In addition, in the event the Collateral Agent fails to perform its
obligations under this Security Agreement in any material manner and fails to
correct its performance within 30 days of receipt of written notice of such
failure given by the Credit Agent at the request of not less than the Required
Lenders, then the Collateral Agent may be removed upon 30 days written notice
given by the Credit Agent at the direction of not less than the Required
Lenders. Upon any such resignation or removal: (i) so long as there has not
occurred and is continuing a Default, the Company shall appoint (which
appointment shall be subject to the approval of the Required Lenders, such
approval not to be unreasonably withheld or delayed), a successor agent for such
Collateral Agent, and (ii) following the occurrence and during the continuance
of a Default, the Required Lenders shall appoint a successor agent for such
Collateral Agent who is in the business of acting as a collateral agent for
mortgage warehouse lenders as a part of its regular business. Following the
appointment and acceptance of a successor Collateral Agent, the Collateral shall
be transferred to the new Collateral Agent within 30 days after such acceptance.
If the Company and/or the Required Lenders, as applicable, are unable to agree
on the appointment of a successor agent by a date 10 days prior to the effective
date of such resignation or removal, the retiring Collateral Agent shall appoint
a successor Collateral Agent who is in the business of acting as a collateral
agent for mortgage warehouse lenders as a part of its regular business. After
the appointment of a successor Collateral Agent and the successor's acceptance
of such appointment, that successor Collateral Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Collateral Agent, and the retiring Collateral Agent shall be discharged
from its duties and obligations under this Security Agreement; provided,
however, that the retiring Collateral Agent shall not be discharged from any
liability as a result of its or its directors',

                                     - 19 -

<PAGE>

officers', agents' or employees' gross negligence or willful misconduct in
connection with the performance of its duties and obligations under this
Security Agreement prior to the effective date of its resignation or removal.
Notwithstanding the foregoing, the Collateral Agent shall continue to hold the
Pledged Items and the security interest created hereunder for the benefit of the
Secured Parties until such Pledged Items and security interest have been
effectively transferred to the successor agent. After the resignation or removal
of any Collateral Agent hereunder, the provisions of this Security Agreement
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Collateral Agent under this Security Agreement.

                  (j)      Representations and Warranties. The Collateral Agent
hereby represents and warrants:

                           (1)      The Collateral Agent is a national banking
         association validly existing, in good standing and authorized to
         exercise its powers, rights and privileges and is qualified to do
         business in all jurisdictions where necessary, and has all requisite
         power and authority to perform all of its obligations under this
         Security Agreement;

                           (2)      The execution, delivery and performance by
         the Collateral Agent of this Security Agreement and all documents
         required hereby to be executed by the Collateral Agent have been duly
         authorized by all necessary corporate action and do not and will not
         violate any existing provision of any law, rule, regulation, order,
         writ, judgment, injunction, decree, determination or award currently in
         effect having applicability to the Collateral Agent; and

                           (3)      This Security Agreement and all documents
         required hereby to be executed by the Collateral Agent have been duly
         executed and delivered by the Collateral Agent.

                  (k)      Tax Returns. The Collateral Agent shall not be
responsible for preparing or filing any reports or returns relating to federal,
state or local income taxes with respect to this Security Agreement, other than
for the Collateral Agent's compensation or for reimbursement of expenses.

                  (l)      Deemed Notification. Any other provision of this
Security Agreement to the contrary notwithstanding, the Collateral Agent shall
have no notice, and shall not be bound by any of the terms and conditions of any
other document or agreement executed or delivered in connection with, or
intended to control any part of, the transactions anticipated by or referred to
in this Security Agreement unless the Collateral Agent is a signatory party to
that document or agreement. Notwithstanding the foregoing sentence, the
Collateral Agent shall be deemed to have notice of the terms and conditions
(including without limitation definitions not otherwise set forth in full in
this Security Agreement) of other documents and agreements executed or delivered
in connection with, or intended to control any part of, the transactions
anticipated by or referred to in this Security Agreement, to the extent such
terms and provisions are referenced, or are incorporated by reference, into this
Security Agreement only as long as the Company or the Credit Agent shall have
provided a copy of any such document or agreement to the Collateral Agent.

                                     - 20 -
<PAGE>

                  (m)      Business Qualification. Nothing in this Security
Agreement shall be deemed to impose on the Collateral Agent any duty to qualify
to do business in any jurisdiction, other than (i) any jurisdiction where any
Collateral documents are or may be held by the Collateral Agent from time to
time hereunder, and (ii) any jurisdiction where its ownership of property or
conduct of business requires such qualification and where failure to qualify
could have a material adverse effect on the Collateral Agent or its property or
business or on the ability of the Collateral Agent to perform it duties
hereunder.

                  (n)      Verification of Signatures. Under no circumstances
shall the Collateral Agent be obligated to verify the authenticity of any
signature on any of the documents received or examined by it in connection with
this Security Agreement or the authority or capacity of any person to execute or
issue such document.

                  (o)      Verification of Payment. The Collateral Agent shall
have no duty to ascertain whether or not any cash amount or payment has been
received by the Company, the Credit Agent or any third person.

                  (p)      Collateral Agent Expenditures. No provision of this
Security Agreement shall require the Collateral Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder or in the exercise of any of its rights and powers, if, in
its sole judgment, it shall believe that repayment of such funds or adequate
indemnity against such risk or liability is not assured to it.

                  (q)      Merger or Consolidation. Any entity into which the
Collateral Agent may be merged or converted or with which it may be
consolidated, or any entity resulting from any merger, conversion or
consolidation to which the Collateral Agent shall be a party, or any entity
succeeding to the business of the Collateral Agent, shall be the successor of
the Collateral Agent hereunder, without the execution or filing of any paper or
any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

                  (r)      Affiliates. The Company and the Credit Agent agree
that the Collateral Agent may execute any of its duties under this Security
Agreement through any of its agents, attorneys-in-fact, or Affiliates. Any such
agent, attorney-in-fact, or Affiliate (and such Affiliate's directors, officers,
agents and employees) which performs duties in connection with this Security
Agreement shall be entitled to the same benefits of the indemnification, waiver
and other protective provisions to which the Collateral Agent is entitled under
this Security Agreement. In particular, to the extent the Collateral Agent is
directed to or may exercise any rights or remedies with respect to this Security
Agreement or any other Credit Document, the Collateral Agent may appoint agents
to exercise any such rights or remedies on behalf of the Collateral Agent. The
Collateral Agent may also assign its rights and obligations under this
Agreement, in whole or in part, to any Affiliate; however, Collateral Agent
agrees to notify Company and Credit Agent of any such assignment.

                  (s)      Force Majeure. The Collateral Agent shall not be
responsible for delays or failures in performance resulting from acts beyond its
control. Such acts shall include, but not be limited to, acts of God, strikes,
lockouts, riots, acts or war or terrorism, epidemics, nationalization,
expropriation, currency restrictions, governmental regulations superimposed

                                     - 21 -
<PAGE>

after the fact, fire, communication line failures, computer viruses, power
failures, earthquakes or other disasters.

         20.      Confidentiality. The Collateral Agent agrees to take normal
and reasonable precautions and exercise due care to maintain the confidentiality
of all non-public information provided to it by the Company or by any other
party on the Company's behalf in connection with this Security Agreement or the
other Credit Documents and agrees and undertakes that neither it nor any of its
Affiliates shall disclose any such information for any purpose or in any manner
other than pursuant to the terms contemplated by this Security Agreement or the
other Credit Documents. The Collateral Agent may disclose such information (1)
to any Secured Party, (2) at the request of any regulatory authority or in
connection with an examination of the Collateral Agent or any of its Affiliates
by any such authority, (3) pursuant to subpoena or other court process, (4) when
required to do so in accordance with the provisions of any applicable law, (5)
at the express direction of any other governmental authority of any State of the
United States of America or of any other jurisdiction in which the Collateral
Agent or any of its Affiliates conducts its business, (6) to the Collateral
Agent's or any of its Affiliates' independent auditors, attorneys and other
professional advisors, (7) if such information has become public other than
through disclosure by the Collateral Agent or any of its Affiliates or any
Lender, and (8) in connection with any litigation involving the Collateral Agent
or any of its Affiliates. The Collateral Agent shall give the Company prior
written notice of any disclosure pursuant to clause (2), (3), (4) or (5) of the
preceding sentence unless the Collateral Agent is prohibited from doing so by
the party requesting such information. Notwithstanding the foregoing, the
Company authorizes the Collateral Agent to disclose to any lending institution
proposed by the Company to become a Lender under the Credit Agreement or any
prospective or actual Participants such financial and other information in its
possession (i) which has been delivered to the Collateral Agent pursuant to the
Credit Documents or which has been delivered to the Collateral Agent by the
Company prior to entering into the Credit Documents or (ii) which is reasonably
necessary to effectuate the purposes of the Credit Agreement and this Security
Agreement, provided that unless otherwise agreed by the Company, such lending
institution or Participant shall agree in writing to keep such information
confidential to the same extent required of the Collateral Agent hereunder.

         21.      Voting of Debtholders. In all cases in which this Security
Agreement requires the consent, approval or direction of the Required Lenders or
all of the Lenders with respect to any action, the Credit Agent shall be
responsible for determining whether the Lenders have given such consent,
approval or direction and shall notify the Collateral Agent thereof in writing.
The Collateral Agent shall be entitled to rely without independent verification
upon the information supplied by the Credit Agent with respect to any consent,
approval or direction of the Required Lenders (or all of the Lenders with
respect to actions which require unanimous approval of the Lenders).

         22.      Binding Upon Successors. All rights of the Collateral Agent
and the Secured Parties under this Security Agreement shall inure to the benefit
of the Collateral Agent and the Secured Parties and their successors and
assigns. This Security Agreement shall not be assignable by the Company without
the consent of all Lenders.

                                     - 22 -
<PAGE>

         23.      Entire Agreement; Severability. This Security Agreement
contains the entire security agreement and collateral agency agreement with
respect to the Collateral among the Secured Parties and the Company and
supersedes all prior written or oral agreements and understandings relating
thereto. All waivers by the Company provided for in this Security Agreement have
been specifically negotiated by the parties with full cognizance and
understanding of their rights. If any of the provisions of this Security
Agreement shall be held invalid or unenforceable, this Security Agreement shall
be construed as if not containing such provisions, and the rights and
obligations of the parties hereto shall be construed and enforced accordingly.

         24.      Choice of Law. This Security Agreement shall be construed in
accordance with and governed by the laws of the State of Illinois. Where
applicable and except as otherwise defined herein, terms used herein shall have
the meanings given them in the Illinois Uniform Commercial Code.

         25.      Place of Business; Records. The Company represents and
warrants that its principal place of business and chief executive office is at
the address set forth beneath its signature below, and that its books and
records concerning the Collateral are kept at its principal place of business
and chief executive office. The Company shall not change its principal place of
business and chief executive office without 30 days' prior written notice to the
Credit Agent and the Collateral Agent.

         26.      Notice. Except where instructions or notices are expressly
authorized elsewhere in this Security Agreement to be given by telephone or by
other means of transmission, all instructions, notices and other communications
to be given to any party hereto shall be in writing and shall be personally
delivered or sent by certified mail, postage prepaid, private delivery service
or by facsimile, and shall be deemed to be given for purposes of this Security
Agreement on the day (or at the time of day, if applicable) when actually
received by the intended party at its address or facsimile or telephone number
as set forth following its signature below (or as such party may specify to the
other parties in writing).

                                     - 23 -
<PAGE>

         27.      Waiver of Jury Trial.

                  EACH PARTY TO THIS SECURITY AGREEMENT HEREBY WAIVES TRIAL BY
JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH ANY CREDIT DOCUMENT OR THE RELATIONSHIP
ESTABLISHED THEREUNDER.

         EXECUTED the day and year first above written.

                                          PULTE MORTGAGE LLC

                                          By:  /s/ David M. Bruining
                                              ---------------------------
                                          Name: David Bruining
                                          Title: Senior Vice President and CFO

                                          Address for Notices:

                                          7475 South Joliet Street
                                          Englewood, Colorado 80112
                                          Attn: Chief Financial Officer
                                          Telephone No.: (303) 740-3386
                                          Facsimile No.: (303) 741-2946

                                          BANK ONE, NA, a national banking
                                          association, as Credit Agent

                                          By:  /s/ Rodney Davis
                                              ---------------------------
                                          Name: Rodney S. Davis
                                          Title: Associate Director

                                          Address for notices:

                                          1 Bank One Plaza
                                          Mail Suite IL1-0098
                                          Chicago, Illinois 60670
                                          Attn: Kenneth Nelson
                                          Telephone No.: (312) 732-6403
                                          Facsimile No.: (312) 732-5939

                                     - 24 -
<PAGE>

                                          LASALLE BANK NATIONAL ASSOCIATION, as
                                          Collateral Agent

                                          By:  /s/ Harry J. Cicchetti
                                              ---------------------------
                                          Name: Harry J. Cicchetti
                                          Title: Senior Vice President

                                          Address for Notices:

                                          2571 Busse Road, Suite 200
                                          Elk Grove Village, IL 60007
                                          Attn: Collateral Services Manager
                                          Telephone No.: (847) 766-6427
                                          Facsimile No.: (847) 766-3456

                                     - 25 -
<PAGE>

                             EXHIBITS AND SCHEDULES
                                       TO
                               SECURITY AGREEMENT

<TABLE>
<CAPTION>
SCHEDULE           DOCUMENT
--------           --------
<S>                <C>
   A               Required Mortgage Documents

   B               Additional Required Mortgage Documents

   C               Form of Borrowing Base Report
</TABLE>

<TABLE>
<CAPTION>
EXHIBIT            DOCUMENT
-------            --------
<S>                <C>
  1                Required Review Steps

  2                Form of Company Trust Receipt

  3.A              Form of Gestation Request

  3.B              Form of Shipping Request

  4                Form of Whole Loan Sale Transmittal Letter

  5                Form of Warehouse-Related MBS Transmittal

  6                Form of Custodial Agreement

  7                Form of Collateral Transmittal - Initial Mortgage
                   Information
</TABLE>

                                     - 26 -
<PAGE>

                                                                      SCHEDULE A
                                                           TO SECURITY AGREEMENT

                           REQUIRED MORTGAGE DOCUMENTS

         1.       Original of mortgage note executed in favor of the Company
                  (with a complete series of endorsements from the original
                  payee thereof, through any subsequent holders to the Company
                  if purchased by the Company) and endorsed by an authorized
                  signatory of the Company in blank.

         2.       Recorded Mortgage or deed of trust securing the above mortgage
                  note. In lieu of a recorded document, the Collateral Agent may
                  accept a copy certified as being out for recordation by the
                  escrow company, title insurance company or closing agent, or
                  an authorized signatory of the Company.

         3.       Assignment of the mortgage or deed of trust by the Company or
                  the Mortgage Electronic Registration Service as nominee of the
                  Company (in such capacity, "MERS") in blank in recordable form
                  and the original or a copy, certified by the records office or
                  escrow or title insurance company, or the Company or MERS (in
                  the case of a copy), of a proper assignment or assignments
                  (including any interim assignments) of the related mortgage or
                  deed of trust from the original holder, through any subsequent
                  transferees, to the Company or MERS.

                                     - 27 -
<PAGE>

                                                                      SCHEDULE B
                                                           TO SECURITY AGREEMENT

                     ADDITIONAL REQUIRED MORTGAGE DOCUMENTS

         1.       The original recorded mortgage or deed of trust securing the
                  mortgage note.

         2.       Evidence of fire and extended coverage insurance in an amount
                  not less than the highest of the following: (a) the amount of
                  the Mortgage Loan, (b) 90% of the insurable value of the
                  improvements, and (c) an amount sufficient to prevent
                  co-insurance. The Collateral Agent reserves the right to
                  obtain a loss payable endorsement in its favor if it so
                  desires.

         3.       Evidence of Notice to Customer required by the federal
                  Truth-in-Lending Law and Federal Reserve Regulation Z.

         4.       In the case of an FHA mortgage note, an FHA insurance
                  certificate or a commitment to deliver such; in the case of a
                  VA mortgage note, a VA guaranty certificate or a commitment to
                  deliver such; and in the case of a conventional mortgage note,
                  an appraisal.

         5.       In the case of a conventional mortgage note with a
                  loan-to-value ratio in excess of 80%, the applicable private
                  mortgage insurance policy.

         6.       A certified copy of the preliminary policy of or commitment
                  for title insurance insuring the mortgage or deed of trust as
                  a first lien on the property subject thereto written by a
                  title company and in amount and containing exceptions
                  satisfactory to the Collateral Agent.

         7.       Evidence of certificate of completion, as appropriate under
                  the circumstances.

         8.       A copy, certified by the title insurance company or the
                  closing agent, of all applicable and necessary
                  powers-of-attorney and assumed name certificates.

         9.       Other documentation as the Collateral Agent may reasonably
                  deem appropriate.

         10.      Documentation necessary to fulfill requirements of the
                  Approved Investor Commitments.

         11.      Such additional documents as may be necessary in the good
                  faith opinion of the Collateral Agent to transfer to the
                  Collateral Agent, for the benefit of the Secured Parties, the
                  title to any Collateral pledged and/or hypothecated pursuant
                  to the Security Agreement.

                                     - 28 -
<PAGE>

                                                                      SCHEDULE C
                                                           TO SECURITY AGREEMENT

                       FORM OF BORROWING BASE CERTIFICATE

                                     - 29 -
<PAGE>

                                                                       EXHIBIT 1
                                                           TO SECURITY AGREEMENT

                              REQUIRED REVIEW STEPS

         1.       All submitted documents, are consistent with the related
                  Collateral Transmittal as to borrower name, loan face amount,
                  loan type and the Company's loan number.

         2.       The note and mortgage/deed of trust each bears an original
                  signature or signatures which appear to be those of the person
                  or persons named as the maker and mortgagor/trustor, or, in
                  the case of a certified copy of the mortgage/deed of trust,
                  such copy bears what appears to be a reproduction of such
                  signature or signatures.

         3.       Except for (a) the endorsement to the Company of the note in
                  the event such loan was purchased by the Company and (b) the
                  endorsement in blank of the note by an authorized signatory of
                  the Company, neither the note, the mortgage/deed of trust, nor
                  the assignment(s) of the mortgage/deed of trust contain any
                  irregular writings which appear on their face to affect the
                  validity of any such endorsement or to restrict the
                  enforceability of the document on which they appear.

         4.       The note is endorsed in blank by an authorized signatory of
                  the Company.

         5.       The assignment of the mortgage/deed of trust bears an original
                  signature of an authorized officer of the Company, based on
                  the current list of such officers supplied by the Company, or
                  an original signature of an officer of the Company authorized
                  by MERS, as nominee of the Company, to sign on behalf of MERS,
                  based on the corporate resolution of MERS which appointed such
                  officers of the Company for such purpose (a copy of such
                  resolution having been provided by the Company).

         6.       Such other review steps as the Collateral Agent, in its sole
                  discretion, deems appropriate.

                                     - 30 -
<PAGE>

                                                                       EXHIBIT 2
                                                           TO SECURITY AGREEMENT

                          FORM OF COMPANY TRUST RECEIPT

                                                           _______________, 20__

         The undersigned, PULTE MORTGAGE LLC, a Delaware limited liability
company (the "Company"), acknowledges receipt from LASALLE BANK NATIONAL
ASSOCIATION, acting as agent, bailee and custodian (in such capacity "Collateral
Agent") for the exclusive benefit of the Secured Parties pursuant to the
Security Agreement (as those terms and capitalized terms not otherwise defined
herein are defined in that certain Fourth Amended and Restated Revolving Credit
Agreement dated as of _____________, 2003, among the Lenders, the Company and
Bank One, NA, as Agent (as amended from time to time, the "Credit Agreement") of
the following described documentation for the identified Mortgage Loans (the
"Collateral Documents"), possession of which is herewith entrusted to the
Company solely for the purpose of correcting documentary defects relating
thereto:

<TABLE>
<CAPTION>
                                                  Loan Document
Borrower Name     Loan Number     Note Amount       Delivered
-------------     -----------     -----------     -------------
<S>               <C>             <C>             <C>
</TABLE>

         It is hereby acknowledged that a security interest pursuant to the
Illinois Uniform Commercial Code in the Collateral hereinabove described and in
the proceeds of said Collateral has been granted to Collateral Agent for the
benefit of the Secured Parties pursuant to the Security Agreement.

         In consideration of the aforesaid delivery by Collateral Agent, the
Company hereby agrees to hold said Collateral in trust for Collateral Agent on
behalf of the Secured Parties as provided under and in accordance with all
provisions of the Security Agreement and to return said Collateral to Collateral
Agent no later than the close of business on the fifteenth calendar day
following the date hereof or, if such day is not a Business Day, on the
immediately succeeding Business Day. The Company represents and warrants that
the aforesaid delivery by the Collateral Agent shall not cause the Aggregate
Mortgage-Related Debt to exceed the Borrowing Base or cause any violation of any
other provision of the Credit Agreement.

                                PULTE MORTGAGE LLC, a Delaware limited liability
                                company

                                By:________________________________
                                Name:______________________________
                                Title:_____________________________

                                     - 31 -
<PAGE>

                                                                     EXHIBIT 3.A
                                                           TO SECURITY AGREEMENT

                            FORM OF GESTATION REQUEST

Date:_______________

LaSalle Bank National Association
as Collateral Agent

________________________________

________________________________

Attention: _____________________

This letter is to serve as authorization for you to endorse the following loans:

Loan Number          Borrower Name          Note Amount

under Commitment #__________ (the "Commitment") from an Approved Investor as
follows:

Please endorse the notes as follows:

                                PULTE MORTGAGE LLC, a Delaware limited liability
                                company

                                By:________________________________
                                Name:______________________________
                                Title:_____________________________

             ELECTION FOR INCLUSION IN THE GESTATION BORROWING BASE

Pursuant to that certain Third Amended and Restated Security and Collateral
Agency Agreement dated as of _____________, 2003 (as amended from time to time,
the "Security Agreement") by and among LaSalle Bank National Association (the
"Collateral Agent"), Bank One, NA, and Pulte Mortgage LLC (the "Company"), by
checking any of the items below, the Company hereby requests the Collateral
Agent to include the Mortgage Loans identified in this request in Gestation
Collateral for the computation of the Gestation Borrowing Base upon the
Collateral Agent's receipt of the following Federal Agency schedule(s) from the
Company listing such Mortgage Loans, and which have been completed and executed
by the Collateral Agent as pool custodian:

( )  FNMA Schedule of Mortgages (Form 2005).

( )  GNMA Schedule of Pooled Mortgages (HUD Form 11706).

                                     - 32 -
<PAGE>

( )  FHLMC Custodial Certification Schedule (Form 1034).

( )  FHLMC Mortgage Loan Submission Schedule (Form 11)

We hereby certify that an Approved Investor Commitment for the Mortgage Loans to
be included in the Gestation Collateral pursuant hereto is in effect.

                                PULTE MORTGAGE LLC, a Delaware limited liability
                                company

                                By:________________________________
                                Name:______________________________
                                Title:_____________________________

                                     - 33 -
<PAGE>

                                                                     EXHIBIT 3.B
                                                           TO SECURITY AGREEMENT

                            FORM OF SHIPPING REQUEST

Date:____________________

LaSalle Bank National Association
as Collateral Agent

________________________________

________________________________

Attention: __________________

This letter is to serve as authorization for you to endorse and ship the
following loans:

Loan Number          Borrower Name          Note Amount

to the following address under Commitment #__________ (the "Commitment") from an
Approved Investor as follows:

NAME:
ADDRESS:

ATTENTION:

Please endorse the notes as follows:

Please ship the loan documents either by ____________________ or by such other
courier service as we have designated to you as "approved". The courier shall
act as an independent contractor bailee acting solely on your behalf as
Collateral Agent for the Secured Parties (as defined in that certain Third
Amended and Restated Security and Collateral Agency Agreement dated as of
___________, 2003, as the same may be amended, extended or replaced from time to
time), but we acknowledge and agree that you are not responsible for any delays
in shipment caused by courier or any other actions or inactions of the courier,
including, without limitation, any loss of any loan documents; however, because
the Commitment expires on _______________, 200_, we ask that you deliver the
loan documents to the courier no later than _______________, 200_.

                                     - 34 -
<PAGE>

Please have the courier bill us by using our acct #__________. If you should
have any questions, or should feel the need for additional documentation, please
do not hesitate to call _______________.

                                PULTE MORTGAGE LLC, a Delaware limited liability
                                company

                                By:________________________________
                                Name:______________________________
                                Title:_____________________________

                                     - 35 -
<PAGE>

                                                                       EXHIBIT 4
                                                           TO SECURITY AGREEMENT
                                                               (Direct Investor)

Date:________________
Name of Delivery Service:____________________________________
Airbill No.:____________________

                   FORM OF WHOLE LOAN SALE TRANSMITTAL LETTER
                        [LETTERHEAD OF COLLATERAL AGENT]

[Approved Investor]

________________________________

________________________________

         Re:      Pulte Mortgage LLC; Pulte Funding, Inc.
                  Sale of Mortgage Loans

         Attached please find those Mortgage Loans listed separately on the
attached schedule, which Mortgage Loans are owned by PULTE MORTGAGE LLC ("PMC")
and/or PULTE FUNDING, INC. ("PFI") and are being delivered to you for purchase.

         The Mortgage Loans comprise a portion of the collateral under that
certain Fourth Amended and Restated Revolving Credit Agreement dated as of March
31, 2003 by and among PMC, Bank One, NA, as Agent, and the lenders named therein
and that certain Amended and Restated Loan Agreement dated as of August ___,
2002 among PMC, PFI, Credit Lyonnais New York Branch, as Agent and the lenders
named therein (collectively, the "Secured Parties"). Each of the Mortgage Loans
is subject to a security interest in favor of the undersigned (the "Collateral
Agent") on behalf of the Secured Parties, which security interest shall be
automatically released upon your remittance of the full amount of the purchase
price of such Mortgage Loans (as set forth on the schedule attached hereto) by
wire transfer to the following account:

                WIRE INSTRUCTIONS TO CASH AND COLLATERAL ACCOUNT

                                            Bank One, N.A
                                            ABA 071-00-0013
                                            DDA# 1928368
                                            Ref: Pulte

         Pending your purchase of each Mortgage Loan and until payment therefor
is received, the aforesaid security interest therein will remain in full force
and effect, and you shall hold possession of such Collateral and the
documentation evidencing same as custodian, agent and bailee for and on behalf
of the Secured Parties. In the event any Mortgage Loan is unacceptable for
purchase, return the rejected item directly to the Collateral Agent at the
address set forth below. The Mortgage Loan must be so returned or sales proceeds
remitted in full no later than forty-five (45) calendar days from the date
hereof. In no event shall any Mortgage Loan be returned to or sales proceeds
remitted to PMC or PFI. If you are unable to comply with the above instructions,
please so advise the undersigned immediately.

                                     - 36 -
<PAGE>

         NOTE: BY ACCEPTING THE MORTGAGE LOANS DELIVERED TO YOU WITH THIS
LETTER, YOU CONSENT TO BE THE CUSTODIAN, AGENT AND BAILEE FOR THE SECURED
PARTIES ON THE TERMS DESCRIBED IN THIS LETTER. THE UNDERSIGNED, AS COLLATERAL
AGENT, REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF THE ENCLOSED MORTGAGE LOANS AND
THIS LETTER BY SIGNING AND RETURNING THE ENCLOSED COPY OF THIS LETTER TO THE
UNDERSIGNED; HOWEVER, YOUR FAILURE TO DO SO DOES NOT NULLIFY SUCH CONSENT.

                          Sincerely,

                          LaSalle Bank National Association, as Collateral Agent

                          By:________________________________
                          Title:_____________________________

                          Address: __________________________

                                   __________________________

                                   __________________________

         The undersigned each agrees to and acknowledges the terms of this
letter and, notwithstanding any contrary understanding with or instructions to
you, the addressee of this letter, each of the undersigned instructs you to act
according to the instructions set forth in this letter. These instructions
cannot be altered except by written instructions executed by Collateral Agent.

                        PULTE MORTGAGE LLC, a Delaware limited liability company

                        By:________________________________
                        Name:______________________________
                        Title:_____________________________

                        PULTE FUNDING, INC., a Michigan corporation

                        By:________________________________
                        Name:______________________________
                        Title:_____________________________

ACKNOWLEDGEMENT OF RECEIPT

[Approved Investor]

By: _________________________________
Name: _______________________________
Title: ______________________________
Date: _______________________________

                                     - 37 -
<PAGE>

                                                                       EXHIBIT 5
                                                           TO SECURITY AGREEMENT
                                                                (Pool Formation)

              FORM OF WAREHOUSE-RELATED SECURITY TRANSMITTAL LETTER
                          [COLLATERAL AGENT LETTERHEAD]

Date:___________________

[Certificating Custodian]

________________________________

________________________________

         Re:      Pulte Mortgage LLC;
                  Shipment of Mortgage Loans for Pool Formation

         Attached please find those Mortgage Loans listed separately on the
attached schedule, which are owned by PULTE MORTGAGE LLC, a Delaware limited
liability company (the "Company") and are being delivered to you, as
custodian/trustee (the "Certificating Custodian"), for certification in
connection with the formation of a mortgage pool supporting the issuance of a
mortgage-backed security (the "Warehouse-Related Security") described as
follows: ______________________________.

         The Mortgage Loans comprise a portion of the Collateral under (and as
the term "Collateral" and capitalized terms not otherwise defined herein are
defined in) that certain Fourth Amended and Restated Revolving Credit Agreement
dated as of ______________, 2003, by and among the Company, Bank One, NA, as
Agent, and the Lenders named therein. Each of the Mortgage Loans is subject to a
security interest in favor of the undersigned ("Collateral Agent") for the
benefit of the Secured Parties, which security interest shall be automatically
released upon the issuance of the Warehouse-Related Security in accordance with
the terms of the prescribed GNMA, FNMA or FHLMC form enclosed herewith.

         Pending issuance of the Warehouse-Related Security, the aforesaid
security interest in each Mortgage Loan will remain in full force and effect,
and you shall hold such Collateral as custodian, agent and bailee for and on
behalf of the Secured Parties. In the event any Mortgage Loan is unacceptable
for pool formation, return the rejected item directly to the undersigned, as
Collateral Agent, at the address set forth below. Each Mortgage Loan must be so
returned or the Warehouse-Related Security issued no later than forty-five (45)
calendar days from the date hereof. In no event shall any Mortgage Loan be
returned to or proceeds relating thereto be remitted to the Company. If you are
unable to comply with the above instructions, please so advise the undersigned
immediately.

         NOTE: BY ACCEPTING THE MORTGAGE LOANS DELIVERED TO YOU WITH THIS
LETTER, YOU CONSENT TO BE THE CUSTODIAN, AGENT AND BAILEE FOR THE SECURED
PARTIES ON THE TERMS DESCRIBED IN THIS LETTER. THE UNDERSIGNED, AS COLLATERAL
AGENT, REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF THE ENCLOSED MORTGAGE LOANS AND
THIS LETTER BY SIGNING

                                     - 38 -
<PAGE>

AND RETURNING THE ENCLOSED COPY OF THIS LETTER TO THE UNDERSIGNED; HOWEVER, YOUR
FAILURE TO DO SO DOES NOT NULLIFY SUCH CONSENT.

                                    Sincerely,

                                    LASALLE BANK NATIONAL ASSOCIATION, as
                                    Collateral Agent

                                    By:________________________________
                                    Title:_____________________________

                                    Address:___________________________

                                                ___________________________

                                                ___________________________

ACKNOWLEDGEMENT OF RECEIPT

[Certificating Custodian]

By:_______________________________
Name:_____________________________
Title_____________________________

Date:_____________________________

                                     - 39 -
<PAGE>

                                                                       EXHIBIT 6
                                                           TO SECURITY AGREEMENT

                           FORM OF CUSTODIAL AGREEMENT
                     (With Operating Instructions Attached)

                                                             ___________, 200___

_________________________
_________________________
_________________________

         Re:      Pulte Mortgage LLC

Ladies and Gentlemen:

         The undersigned, LaSalle Bank National Association (the "Collateral
Agent") acts in the capacity as Collateral Agent pursuant to: (1) that certain
Fourth Amended and Restated Revolving Credit Agreement dated as of ____________,
2003 (as amended from time to time, the "Credit Agreement", and as capitalized
terms not otherwise defined herein are used with the same meaning as in the
Credit Agreement) by and among PULTE MORTGAGE LLC (the "Company"), the lenders
participating therein (collectively, the "Lenders"), and BANK ONE, NA, as agent
for the Lenders (the "Credit Agent"), and (2) that certain Third Amended and
Restated Security and Collateral Agency Agreement (the "Security Agreement")
dated concurrently therewith among the Collateral Agent, the Company, and the
Credit Agent.

         The Collateral Agent represents and confirms that it has the power and
authority under the Credit Agreement and the Security Agreement to execute this
Custodial Agreement. The Collateral Agent may execute any of its duties
hereunder by or through agents or attorneys-in-fact of whose appointment you
have been notified in writing.

         The Collateral Agent hereby appoints you and you hereby accept
appointment to act as agent, custodian and bailee for the benefit of the Secured
Parties (as defined in the Security Agreement) (in such capacity, the "Approved
MBS Custodian"). In such capacity, you agree to accept delivery only on a free
basis of certain mortgage-backed securities delivered to you from time to time
identified in a letter in the form attached hereto as Exhibit A (all such
mortgage-backed securities delivered to you and so identified being referred to
herein as "Subject Securities"). This Custodial Agreement governs your rights
and responsibilities as Approved MBS Custodian with respect to all Subject
Securities.

         The Collateral Agent hereby directs you, as Approved MBS Custodian, to
hold or dispose of Subject Securities deposited with you only in accordance with
the instructions of a person described as an "Authorized Collateral Agent
Representative" on a schedule from time to time delivered to you by the
Collateral Agent (the initial list of such persons being attached hereto as
Schedule I) or otherwise as expressly permitted hereunder, including without
limitation the Company's right to direct the sale or disposition of the Subject
Securities as described in the

                                     - 40 -

<PAGE>

following paragraph. You are authorized, directed and instructed to act upon all
instructions from persons reasonably believed by you to be genuine and
authorized. Any instruction given hereunder may, in your discretion, be by
telegraph, cable, facsimile or electronic communication which is received by
you.

         All Subject Securities are to be held by you in a custodial account
(Account No. __________) maintained with you (the "MBS Custodial Account").
Unless and until you have received written notice to the contrary from the
Collateral Agent at the direction of the Required Lenders (which notice may be
by facsimile transmission) following a Default, you may from time to time
deliver Subject Securities at the direction of the Company to, but only to,
Approved Investors (as listed on a schedule of "Approved Investors" delivered to
you from time to time by an Authorized Collateral Agent Representative) against
payment of the purchase price therefor. Notwithstanding the preceding sentence,
even after your receipt of notice from the Collateral Agent that a Default
exists, you may deliver Subject Securities at the direction of the Company, but
only to Approved Investors pursuant to then-existing Approved Investor
Commitments. The proceeds of the sale or other disposition of all Subject
Securities are to be held by you in an account (Account No. __________)
maintained with you (the "Custodian Settlement Account") and transferred by the
end of each Business Day to Account No. 19-28368 maintained in the Credit
Agent's name at Bank One, NA (the "Cash and Collateral Account") as follows:

                                 Bank One, N.A
                                 ABA 071-00-0013
                                 DDA# 1928368
                                 Ref: Pulte

         By executing this Custodial Agreement the Company confirms and the
Collateral Agent and the Company notify you that the Company has assigned and
granted to the Collateral Agent and/or the Credit Agent a security interest in
and lien upon all now existing and hereafter arising right, title and interest
of the Company in the MBS Custodial Account, the Custodian Settlement Account
and the Cash and Collateral Account and in any and all investments and proceeds
at any time held therein.

         You shall be under no duty to take or omit to take any action with
respect to Subject Securities, except as specifically set forth in this
Agreement and the Operating Instructions attached hereto as Exhibit B, unless
specifically otherwise directed by the Collateral Agent and agreed to by you in
writing. In the event that you shall be uncertain as to your duties or rights
hereunder, you shall be entitled to refrain from taking any action until you
shall be directed otherwise by an order of a court of competent jurisdiction. In
case you should agree to our request and on our behalf to appear in, prosecute
or defend any legal or equitable proceeding either in your own name or in the
name of your nominee, you shall first be indemnified to your satisfaction (other
than against your gross negligence and willful misconduct).

         By accepting delivery of any Subject Security, you shall be deemed to
have agreed to hold such Subject Security as Approved MBS Custodian hereunder,
free and clear of all liens, claims, interests and rights of offset in your
favor or in favor of persons claiming through you. You may accept certified
checks in payment for Subject Securities delivered on the Company's instruction

                                     - 41 -

<PAGE>

and you shall not be responsible for the risks of collectability of any such
checks. YOU ARE HEREBY IRREVOCABLY INSTRUCTED BY THE COMPANY AND THE COLLATERAL
AGENT THAT ALL PROCEEDS RECEIVED FROM THE SALE OR OTHER DISPOSITION OF SUBJECT
SECURITIES, UNTIL OTHERWISE NOTIFIED IN WRITING BY THE COLLATERAL AGENT, SHALL
BE WIRED TO THE CASH AND COLLATERAL ACCOUNT AS PROVIDED ABOVE.

         You will provide to the Collateral Agent on a daily basis at or before
9:30 a.m. (Chicago time) a report of the prior day's activity with respect to
the MBS Custodial Account and the Custodian Settlement Account.

         You shall not be liable or accountable for any act or omission of
brokers, dealers or agents in connection with this Custodial Agreement. In
carrying out your duties hereunder, you may use such methods or agencies as you
determine in your sole discretion, including your own facilities.

         You shall maintain regular business records documenting all
instructions transmitted to you through any authorized means and any response by
you. You are authorized to electronically record any telephone communications
with the Company or the Collateral Agent arising out of this Custodial
Agreement. Your records shall be determinative of the form, content and time of
all the Company's and Collateral Agent's instructions and any response from you.
The record of each instruction and any response thereto shall be retained by you
for at least ninety (90) days following the date of the instruction. Any claim
against you for failure to properly follow an instruction transmitted by the
Company or the Collateral Agent must be made in writing and received by you
within ninety (90) days after the date such instruction was received by you.

         You shall give the Subject Securities that come into your possession
under this Custodial Agreement the same physical care and safeguards as are
afforded similar property owned by you; provided, however, your responsibility
hereunder is limited to losses occasioned directly by the gross negligence or
willful misconduct of your employees, to the extent of the market value of the
Subject Securities at the date of the discovery of such loss. With respect to
any Subject Securities which you deliver for us to a third party, and with
respect to such delivery, you shall be deemed no more than an "intermediary" as
referenced in Section 8-306(3) of the New York Uniform Commercial Code, and the
only warranty given by you shall be the warranty provided in said Section
8-306(3). In no event shall you be liable for any indirect, special or
consequential loss, even if you have been advised of the possibility of such
loss. You may, at your option, make arrangements for insuring yourselves against
loss from any cause, but you shall not be under any obligation to insure for our
benefit.

         None of the Subject Securities held in the MBS Custodial Account, the
funds held at any time in the Custodian Settlement Account, the Subject
Securities or any proceeds of the sale or other disposition thereof will be
subject to any right, charge, security interest, lien, encumbrance or claim of
any kind in your or your creditors' favor. Any claims for the payment of fees
with respect to the safe custody or administration of Subject Securities or for
compensation, expenses, commitments made by you upon instructions of the
Collateral Agent, reimbursement of taxes incurred by you for the account of the
Collateral Agent, any penalties incurred by or levied or

                                     - 42 -

<PAGE>

assessed against you resulting from the Collateral Agent's improper or incorrect
instructions, or other liabilities of the Collateral Agent to you, and for
indemnity against any claim or liability to which you are subjected by reason of
any registration of Subject Securities shall be enforceable solely against the
Company and none of the Collateral Agent, the Credit Agent or any Secured Party
shall have any responsibility therefor (except to the extent any of the
foregoing are due to the gross negligence or willful misconduct of the
Collateral Agent, the Credit Agent or any Secured Party, as applicable). The
Collateral Agent and the Company agree to make no claim against you except for
any such claims or liabilities arising, or claimed to have arisen, as a result
of your gross negligence or willful misconduct.

         The Operating Instructions attached hereto are hereby made part hereof
and any and all capitalized terms defined herein shall have the same meaning
when used therein.

         This Custodial Agreement contains the whole of the understanding
between you and the Collateral Agent concerning the subject matter hereof and no
provision hereof shall be modified or altered except in a writing signed by both
you and the Collateral Agent.

         This Custodial Agreement shall be governed by the laws of the State of
New York and shall be binding upon the Collateral Agent and upon its successors
and assigns and shall inure to your benefit and your successors and assigns and
shall be deemed continuing until terminated by either the Collateral Agent or
you upon at least ninety (90) days prior written notice to the other.

         This letter is made in triplicate and will become an agreement between
you and the Collateral Agent upon your acceptance hereof in the space provided
below at your offices in the State of New York.

                                         LASALLE BANK NATIONAL ASSOCIATION, as
                                         Collateral Agent

                                         By:________________________________
                                         Name:______________________________
                                         Title:_____________________________

AGREED TO AND ACCEPTED:
_________________________________,
as Approved MBS Custodian

By:_________________________________
Name:_______________________________
Title:______________________________

                                     - 43 -

<PAGE>

                        ACKNOWLEDGEMENT AND AUTHORIZATION

         The Company approves the foregoing Custodial Agreement and authorizes
the Approved MBS Custodian to act in accordance with the terms thereof. The
Company agrees to be bound by the terms of the Custodial Agreement (including
all Exhibits thereto) to the same extent as if a party thereto. The Company
agrees to indemnify the Approved MBS Custodian for, and hold the Approved MBS
Custodian harmless against, any loss, liability or expense in connection with,
arising out of or in any way related to the transaction contemplated and
relationship established by the Custodial Agreement, or any action or omission
by the Approved MBS Custodian in connection with the Custodial Agreement, or any
agent, broker or dealer employed by the Approved MBS Custodian hereunder,
including the reasonable costs and expenses incurred in defending any such claim
of liability, except that the Company shall not be liable for (i) any loss,
liability or expense that is determined by a judgment of a court of competent
jurisdiction that is binding on the Approved MBS Custodian, final and not
subject to review on appeal, to be the direct result of acts or omissions on the
Approved MBS Custodian's part constituting gross negligence or willful
misconduct, or (ii) any claim that is based on the Approved MBS Custodian's
warranty as provided in Section 8-306(3) of the New York Uniform Commercial
Code.

                           PULTE MORTGAGE LLC, a Delaware limited liability
                           company

                           By:________________________________
                           Name:______________________________
                           Title:_____________________________

                                     - 44 -

<PAGE>

                                                                       EXHIBIT A
                                                          TO CUSTODIAL AGREEMENT

                    FORM OF LETTER TO APPROVED MBS CUSTODIAN

To: _________________________,
  as Approved MBS Custodian

      Re:      Pulte Mortgage LLC;
               Custodial and Collateral Agency Instructions

Ladies and Gentlemen:

         Reference is made to the attached schedule relating to a
letter/certification to a transfer agent/trustee for the issuance of the
Security described more particularly therein, which Security is supported by a
pool of residential mortgage loans and/or mortgage-backed securities including
mortgage loans and/or mortgage-backed securities in which the undersigned as
collateral agent (in such capacity, the "Collateral Agent"), acting under that
certain Third Amended and Restated Security and Collateral Agency Agreement
dated as of ____________, 2003, as amended, extended or replaced from time to
time, holds a first priority perfected security interest. The attached schedule
is (i) Delivery Schedule Form 11705 in the case of GNMA Securities, (ii)
Delivery Schedule Form 996 in the case of FHLMC Securities, (iii) Delivery
Schedule Form 2014 in the case of FNMA Securities, or (iv) a form containing
substantially similar information in the case of any other Securities. Pursuant
to the letter/certification, the transfer agent/trustee has been instructed to
deliver such Security to you. You are hereby notified that the Collateral Agent
and the Secured Parties named therein have a first perfected security interest
in the Security and in all proceeds of the sale or other disposition thereof and
in all accounts into which said proceeds may be deposited.

         This letter will confirm your agreement to hold such Security as a
"Subject Security" under and on terms and conditions set forth more particularly
in that certain Custodial Agreement, dated as of _______________, 200_ between
you and the Collateral Agent.

                                         Very truly yours,

                                         LASALLE BANK NATIONAL ASSOCIATION, as
                                         Collateral Agent

                                         By:________________________________

         The undersigned agrees to and acknowledges the terms of this letter
and, notwithstanding any contrary understanding with or instructions to you, the
addressee of this letter, the undersigned instructs you to act according to the
instructions set forth in this letter. These instructions cannot be altered
except by written instructions executed by Collateral Agent.

                                     - 45 -

<PAGE>

                           PULTE MORTGAGE LLC, a Delaware limited liability
                           company

                           By:________________________________
                           Name:______________________________
                           Title:_____________________________

                                     - 46 -

<PAGE>

                                                                       EXHIBIT B
                                                          TO CUSTODIAL AGREEMENT

                             OPERATING INSTRUCTIONS

         These Operating Instructions are attached to and made a part of the
Custodial Agreement between LaSalle Bank National Association and
___________________, dated as of _______________, 200_ (as amended from time to
time, the "Custodial Agreement"). Terms defined therein shall have their same
meanings when used herein.

         1.       From time to time GNMA, FNMA and FHLMC Subject Securities will
be issued at the request of the Company and credited to your account with The
Federal Reserve Bank of New York ("FRBNY") (in the case of FNMA and FHLMC
Subject Securities) or your account with the Participants Trust Company ("PTC")
(in the case of GNMA Subject Securities) (in each case, to be held by you for
the account of the Collateral Agent) in accordance with the Code of Federal
Regulations (in the case of FNMA and FHLMC Subject Securities) or the rules of
PTC (in the case of GNMA Subject Securities). Upon your receipt of confirmation
that such Subject Securities have been deposited into your account with FRBNY
(in the case of FNMA and FHLMC Subject Securities) or your account with PTC (in
the case of GNMA Subject Securities), you shall promptly issue to the Collateral
Agent and the Company your confirmation that (1) you have received such
confirmation of the Fedwire (in the case of FNMA and FHLMC Subject Securities,
which confirmation will include the number of Subject Securities deposited into
your account with FRBNY) or from PTC (in the case of GNMA Subject Securities),
(2) you have made appropriate entries on your books reflecting the interests of
the Company as beneficial owner and the Collateral Agent as secured party with
respect to such Subject Securities, and (3) there are no security interests or
any rights or claims of any third party in such Subject Securities in your favor
or known to you which have priority over the security interest of the Collateral
Agent in such Subject Securities. You shall have no obligation to ensure or
verify that Securities identified in transmittal letters (in the form of Exhibit
A to the Custodial Agreement) are in fact credited to your account(s), but you
shall be obligated only to report your actual receipt of Subject Securities to
the Collateral Agent and the Company in accordance with the provision of this
Instruction 1.

         2.       With respect to the delivery or transfer of Subject Securities
which you hold for the account of the Collateral Agent, you are hereby
authorized to act only upon instructions from the Collateral Agent or, to the
extent permitted by the Custodial Agreement, by the Company. Upon notification
to you by the Collateral Agent at the direction of the Required Lenders
following a Default, no third party, including without limitation the Company,
may direct you to make any delivery or transfer of such Subject Securities other
than Subject Securities to be delivered pursuant to then-existing Approved
Investor Commitments.

         3.       The proceeds of redemptions, collections and other receipts,
including dividend and interest income, shall be credited to the Custodial
Settlement Account upon collection or payment.

                                     - 47 -

<PAGE>

         4.       You are to notify the Collateral Agent and the Company upon
receipt of notice by you of any call for conversion, redemption, subscription
rights or similar proceeding affecting the Subject Securities held in the
relevant account (any of the foregoing being referred to herein as "Account
Proceedings"), and shall take such action in respect thereof as you may be
directed in writing by the Collateral Agent; provided, however, that you shall
have no duty or responsibility to notify the Company or the Collateral Agent of
any Account Proceedings which do not appear in The Wall Street Journal (New York
Edition), Financial Daily Called Bond Service, The Kenney Services or official
notifications from the Depository Trust Company or such other publications which
you may deem reasonable from time to time. All solicitation fees payable to you
as agent in connection with such event will be retained by you unless
specifically agreed to the contrary by you.

         5.       You are authorized and empowered in the name and on behalf of
the Collateral Agent and the Company to execute any certificates of ownership or
other reports which you are or may hereafter be required to execute and furnish
under any regulation of the Internal Revenue Service, or other authority of the
United States, insofar as the same are required in connection with any property
which is now or may hereafter be in your possession by virtue of the Custodial
Agreement and these Operating Instructions, claiming no exemptions on behalf of
the Collateral Agent or the Company. In the preparation of such reports, the
status of the Collateral Agent is to be described as a bank, trust company or
financial institution, as the case may be, domiciled in the United States. The
Collateral Agent agrees to notify you immediately in writing of any change in
such status.

         6.       All mail communications which are to be furnished or forwarded
hereunder to the Collateral Agent or the Company shall be addressed to such
party at the last address on your records, provided that in case you in your
sole discretion shall determine that an emergency exists, you may use such other
means of communication as you shall deem advisable.

         7.       You are under no duty to supervise, recommend or advise the
Collateral Agent relative to the investment, purchase, sale, retention or other
disposition of any property held hereunder unless specifically provided for by
the Custodial Agreement.

         8.       With respect to any direction to receive securities in
transactions not placed through you, you shall have no duty or responsibility to
advise the Company of non-receipt, or to take any steps to obtain delivery of
securities from any brokers or dealers. All dealer concessions made to you will
be retained by you unless specifically agreed to the contrary by you.

         9.       Notwithstanding anything herein to the contrary, unless
instructions are received from the Collateral Agent, specifying a different
destination than the address listed on your records for the Collateral Agent,
within ten (10) days of the receipt of any termination notice, you shall have
the right to transfer all securities and other property held by you or any
depositary in connection with the Custodial Agreement or registered in your name
to the Collateral Agent at the address listed on your records.

                                     - 48 -

<PAGE>

                                                                      SCHEDULE I
                                                          TO CUSTODIAL AGREEMENT

                   AUTHORIZED COLLATERAL AGENT REPRESENTATIVES

                                     - 49 -

<PAGE>
                                                                       EXHIBIT 7
                                                           TO SECURITY AGREEMENT

             COLLATERAL TRANSMITTAL -- INITIAL MORTGAGE INFORMATION

1.       CUSTOMER NAME ________________________________

2.       LOAN NUMBER __________________________________

3.       MORTGAGOR ____________________________________
                SURNAME ONLY

4.       AP STATUS CODE _______________________________

5.       DEPOSIT DATE _________________________________

6.       ORIGINAL NOTE AMOUNT $________________________

7.       ACQUISITION COST $____________________________

8.       TAKE-OUT VALUE $______________________________

9.       NOTE DATE OR CONVERSION DATE _________________

10.      NOTE RATE ____________________________________

11.      LOAN TYPE (i.e. a group category (e.g. GNMA 15, FNMA/FHLMC 30, etc.)
         set forth on Exhibit F to the Credit Agreement)______________________

                                     - 50 -EXHIBIT 4.6
                             CHESAPEAKE FUNDING LLC,
                                    as Issuer

                                       and

                              JPMORGAN CHASE BANK,
                              as Indenture Trustee

                       SERIES 2003-2 INDENTURE SUPPLEMENT

                         dated as of November [ ], 2003

                                       to

                                 BASE INDENTURE

                            dated as of June 30, 1999

                                  $500,000,000
                                       of
               Floating Rate Callable Asset-Backed Investor Notes
<PAGE>

                               Table of Contents

                                                                            Page

PRELIMINARY STATEMENT..........................................................1

DESIGNATION....................................................................1

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

ARTICLE II ARTICLE 5 OF THE BASE INDENTURE....................................18

    Section 5A.1  Establishment of Series 2003-2 Subaccounts..................18

    Section 5A.2  Allocations with Respect to the Series 2003-2 Investor
                  Notes.......................................................19

    Section 5A.3  Determination of Interest...................................20

    Section 5A.4  Monthly Application of Collections..........................21

    Section 5A.5  Payment of Monthly Interest Payment.........................24

    Section 5A.6  Payment of Principal........................................24

    Section 5A.7  The Administrator's Failure to Instruct the Indenture Trustee
                   to Make a Deposit or Payment...............................25

    Section 5A.8  Series 2003-2 Reserve Account...............................26

    Section 5A.9  Series 2003-2 Yield Supplement Account......................27

    Section 5A.10 Series 2003-2 Distribution Account..........................29

    Section 5A.11 Lease Rate Caps.............................................30

ARTICLE III AMORTIZATION EVENTS...............................................31

ARTICLE IV OPTIONAL PREPAYMENT................................................33

ARTICLE V SERVICING AND ADMINISTRATOR FEES....................................34

    Section 5.1 Servicing Fees................................................34

    Section 5.2 Administrator Fee.............................................34

ARTICLE VI FORM OF SERIES 2003-2 NOTES........................................34

    Section 6.1 Initial Issuance of Series 2003-2 Investor Notes..............34

    Section 6.2 Global Notes..................................................34

                                       -i-
<PAGE>

    Section 6.3 Definitive Notes..............................................35

ARTICLE VII INFORMATION.......................................................35

ARTICLE VIII MISCELLANEOUS....................................................36

    Section 8.1 Ratification of Indenture.....................................36

    Section 8.2 Obligations Unaffected........................................36

    Section 8.3 Governing Law.................................................36

    Section 8.4 Further Assurances............................................36

    Section 8.5 Exhibits......................................................36

    Section 8.6 No Waiver; Cumulative Remedies................................36

    Section 8.7 Amendments....................................................36

    Section 8.8 Severability..................................................37

    Section 8.9 Counterparts..................................................37

    Section 8.10 No Bankruptcy Petition.......................................37

    Section 8.11 SUBIs........................................................37

    Section 8.12 Notice to Rating Agencies....................................38

    Section 8.13 Conflict of Instructions.....................................38

EXHIBITS

Exhibit A-1:  Form of Class A-1 Note
Exhibit A-2:  Form of Class A-2 Note
Exhibit B:    Form of Monthly Settlement Statement
Exhibit C:    Form of Series 2003-2 Lease Rate Cap

                                       ii

<PAGE>
          SERIES 2003-2 SUPPLEMENT, dated as of November [___], 2003 (as
amended, supplemented, restated or otherwise modified from time to time, this
"Indenture Supplement") between CHESAPEAKE FUNDING LLC (formerly known as
Greyhound Funding LLC), a special purpose limited liability company established
under the laws of Delaware (the "Issuer"), and JPMORGAN CHASE BANK (formerly
known as The Chase Manhattan Bank) ("JPMorgan Chase"), a New York banking
corporation, in its capacity as Indenture Trustee (together with its successors
in trust thereunder as provided in the Base Indenture referred to below, the
"Indenture Trustee"), to the Base Indenture, dated as of June 30, 1999, between
the Issuer and the Indenture Trustee (as amended, modified, restated or
supplemented from time to time, exclusive of Indenture Supplements creating new
Series of Investor Notes, the "Base Indenture").

                              PRELIMINARY STATEMENT

          WHEREAS, Sections 2.2 and 12.1 of the Base Indenture provide, among
other things, that the Issuer and the Indenture Trustee may at any time and from
time to time enter into a Indenture Supplement to the Base Indenture for the
purpose of authorizing the issuance of one or more Series of Investor Notes.

     NOW, THEREFORE, the parties hereto agree as follows:

                                   DESIGNATION

          There is hereby created a Series of Investor Notes to be issued
pursuant to the Base Indenture and this Indenture Supplement and such Series of
Investor Notes shall be designated generally as Series 2003-2 Floating Rate
Callable Asset Backed Investor Notes.

          The Series 2003-2 Investor Notes shall be issued in two classes: one
of which shall be designated as Series 2003-2 Floating Rate Callable Asset
Backed Investor Notes, Class A-1, and referred to herein as the Class A-1
Investor Notes and the other of which shall be designated as the Series 2003-2
Floating Rate Callable Asset Backed Investor Notes, Class A-2, and referred to
herein as the Class A-2 Investor Notes. The Class A-1 Investor Notes and the
Class A-2 Investor Notes are referred to herein collectively as the "Series
2003-2 Investor Notes." The Series 2003-2 Investor Notes shall be issued in
minimum denominations of $1,000 and integral multiples of $1,000 in excess
thereof.

          The net proceeds from the sale of the Series 2003-2 Investor Notes (as
defined herein) shall be applied in accordance with Section 5A.2(b) and the
portion thereof deposited in the Series 2003-2 Principal Collection Subaccount
shall be used by the Issuer to fund the maintenance of the SUBI Certificates
under the Transfer Agreement and/or to reduce the Invested Amounts of other
Series of Investor Notes.

                                   ARTICLE I

                                   DEFINITIONS

          (a) All capitalized terms not otherwise defined herein are defined in
the Definitions List attached to the Base Indenture as Schedule 1 thereto. All
Article, Section or Subsection references herein shall refer to Articles,
Sections or Subsections of the Base

<PAGE>

                                                                               2

Indenture, except as otherwise provided herein. Unless otherwise stated herein,
as the context otherwise requires or if such term is otherwise defined in the
Base Indenture, each capitalized term used or defined herein shall relate only
to the Series 2003-2 Investor Notes and not to any other Series of Investor
Notes issued by the Issuer.

          (b) The following words and phrases shall have the following meanings
with respect to the Series 2003-2 Investor Notes and 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:

          "Additional Interest" is defined in Section 5A.3(c).

          "Amortization Event" is defined in Article 3.

          "Assumed Lease Term" means, with respect to any Series 2003-2 Yield
     Shortfall Lease, the number of months over which the Capitalized Cost of
     the related Leased Vehicle is being depreciated thereunder.

          "Authorized Newspaper" means a daily newspaper published in the
     English language of general circulation in Luxembourg (or if publication is
     not practical in Luxembourg, in Europe).

          "Avis" means Avis Group Holdings, Inc. and its successors and assigns.

          "Calculation Agent" means JPMorgan Chase Bank, in its capacity as
     calculation agent with respect to the Series 2003-2 Note Rates.

          "Car" means an automobile or a Light-Duty Truck.

          "Cendant" means Cendant Corporation and its successors and assigns.

          "Class A-1 Final Maturity Date" means the November 2008 Payment Date.

          "Class A-1 Initial Invested Amount" means the aggregate initial
     principal amount of the Class A-1 Investor Notes, which is $230,000,000.

          "Class A-1 Interest Shortfall Amount" is defined in Section 5A.3(c).

          "Class A-1 Invested Amount" means as of any date of determination, an
     amount equal to (a) the Class A-1 Initial Invested Amount minus (b) the
     amount of principal payments made to Class A-1 Investor Noteholders on or
     prior to such date.

          "Class A-1 Investor Noteholder" means the Person in whose name a Class
     A-1 Investor Note is registered in the Note Register.

          "Class A-1 Investor Notes" means any one of the Series 2003-2 Floating
     Rate Callable Asset Backed Investor Notes, Class A-1, executed by the
     Issuer and authenticated by or on behalf of the Indenture Trustee,
     substantially in the form of

<PAGE>
                                                                               3

     Exhibit A-1. Definitive Class A-1 Investor Notes shall have such insertions
     and deletions as are necessary to give effect to the provisions of Section
     2.11 of the Base Indenture.

          "Class A-1 Monthly Interest" means, with respect to any Series 2003-2
     Interest Period, an amount equal to the product of (i) the Class A-1 Note
     Rate for such Series 2003-2 Interest Period, (ii) the Class A-1 Invested
     Amount on the first day of such Series 2003-2 Interest Period, after giving
     effect to any principal payments made on such date, or, in the case of the
     initial Series 2003-2 Interest Period, the Class A-1 Initial Invested
     Amount and (iii) a fraction, the numerator of which is the number of days
     in such Series 2003-2 Interest Period and the denominator of which is 360.

          "Class A-1 Note Rate" means, (i) with respect to the initial Series
     2003-2 Interest Period, [ ]% per annum and (ii) with respect to each Series
     2003-2 Interest Period thereafter, a rate per annum equal to One-Month
     LIBOR for such Series 2003-2 Interest Period plus [_________]% per annum.

          "Class A-2 Final Maturity Date" means the November 2015 Payment Date.

          "Class A-2 Initial Invested Amount" means the aggregate initial
     principal amount of the Class A-2 Investor Notes, which is $270,000,000.

          "Class A-2 Interest Shortfall Amount" is defined in Section 5A.3(c).

          "Class A-2 Invested Amount" means, as of any date of determination, an
     amount equal to (a) the Class A-2 Initial Invested Amount minus (b) the
     amount of principal payments made to Class A-2 Investor Noteholders on or
     prior to such date.

          "Class A-2 Investor Noteholder" means the Person in whose name a Class
     A-2 Investor Note is registered in the Note Register.

          "Class A-2 Investor Notes" means any one of the Series 2003-2 Floating
     Rate Asset Backed Callable Investor Notes, Class A-2, executed by the
     Issuer and authenticated by or on behalf of the Indenture Trustee,
     substantially in the form of Exhibit A-2. Definitive Class A-2 Investor
     Notes shall have such insertions and deletions as are necessary to give
     effect to the provisions of Section 2.11 of the Base Indenture.

          "Class A-2 Monthly Interest" means, with respect to any Series 2003-2
     Interest Period, an amount equal to the product of (i) the Class A-2 Note
     Rate for such Series 2003-2 Interest Period, (ii) the Class A-2 Invested
     Amount on the first day of such Series 2003-2 Interest Period, after giving
     effect to any principal payments made on such date, or, in the case of the
     initial Series 2003-2 Interest Period, the Class A-2 Initial Invested
     Amount and (iii) a fraction, the numerator of which is the number of days
     in such Series 2003-2 Interest Period and the denominator of which is 360.

          "Class A-2 Note Rate" means, (i) with respect to the initial Series
     2003-2 Interest Period, [________]% per annum and (ii) with respect to each
     Series 2003-2 Interest Period thereafter, a rate per annum equal to
     One-Month LIBOR for such Series 2003-2 Interest Period plus [________]% per
     annum.

<PAGE>
                                                                               4

          "Deficiency" is defined in Section 5A.4(b)(i).

          "Dividend Amount" means, with respect to any Payment Date, the
     aggregate amount of dividends payable to the Series 2003-2 Preferred
     Members in respect of their Series 2003-2 Preferred Membership Interests
     pursuant to the LLC Agreement.

          "Dollar", "US$" and "$" means lawful currency of the United States.

          "DTC" means The Depository Trust Company or its successor, as the
     Clearing Agency for the Series 2003-2 Investor Notes.

          "Equipment" means any Vehicle that is not a Car, a Forklift, a
     Heavy-Duty Truck, a Medium-Duty Truck, a Truck Body or a Trailer.

          "Excess Alternative Vehicle Amount" means, on any Settlement Date, an
     amount equal to the excess, if any, of (a) the sum of

               (i) the aggregate Lease Balance of all Eligible Leases the
          related Leased Vehicle of which is not a Car allocated to the Lease
          SUBI as of the last day of the Monthly Period immediately preceding
          such Settlement Date plus

               (ii) an amount equal to the aggregate for each Unit Vehicle which
          is not a Car subject to a Closed-End Lease allocated to the Lease SUBI
          as of the last day of such Monthly Period of the lesser of (A) the
          Stated Residual Value of such Unit Vehicle and (B) the Net Book Value
          of such Unit Vehicle as of the last day of such Monthly Period;

     over (b) an amount equal to 31.5% of the Aggregate Unit Balance as of such
     Settlement Date.

          "Excess Equipment Amount" means, on any Settlement Date, an amount
     equal to the excess, if any, of (a) the sum of

               (i) the aggregate Lease Balance of all Eligible Leases the
          related Leased Vehicle of which is Equipment allocated to the Lease
          SUBI as of the last day of the Monthly Period immediately preceding
          such Settlement Date plus

               (ii) an amount equal to the aggregate for each Unit Vehicle which
          is Equipment subject to a Closed-End Lease allocated to the Lease SUBI
          as of the last day of such Monthly Period of the lesser of (A) the
          Stated Residual Value of such Unit Vehicle and (B) the Net Book Value
          of such Unit Vehicle as of the last day of such Monthly Period;

     over (b) an amount equal to 5% of the Aggregate Unit Balance as of such
     Settlement Date.

          "Excess Forklift Amount" means, on any Settlement Date, an amount
     equal to the excess, if any, of (a) the sum of

<PAGE>
                                                                               5

               (i) the aggregate Lease Balance of all Eligible Leases the
          related Leased Vehicle of which is a Forklift allocated to the Lease
          SUBI as of the last day of the Monthly Period immediately preceding
          such Settlement Date plus

               (ii) an amount equal to the aggregate for each Unit Vehicle which
          is a Forklift subject to a Closed-End Lease allocated to the Lease
          SUBI as of the last day of such Monthly Period of the lesser of (A)
          the Stated Residual Value of such Unit Vehicle and (B) the Net Book
          Value of such Unit Vehicle as of the last day of such Monthly Period;

     over (b) an amount equal to 2% of the Aggregate Unit Balance as of such
     Settlement Date.

          "Excess Heavy-Duty Truck Amount" means, on any Settlement Date, an
     amount equal to the excess, if any, of (a) the sum of

               (i) the aggregate Lease Balance of all Eligible Leases the
          related Leased Vehicle of which is a Heavy-Duty Truck allocated to the
          Lease SUBI as of the last day of the Monthly Period immediately
          preceding such Settlement Date plus

               (ii) an amount equal to the aggregate for each Unit Vehicle which
          is a Heavy-Duty Truck subject to a Closed-End Lease allocated to the
          Lease SUBI as of the last day of such Monthly Period of the lesser of
          (A) the Stated Residual Value of such Unit Vehicle and (B) the Net
          Book Value of such Unit Vehicle as of the last day of such Monthly
          Period;

     over (b) an amount equal to 7.5% of the Aggregate Unit Balance as of such
     Settlement Date.

          "Excess Medium-Duty Truck Amount" means, on any Settlement Date, an
     amount equal to the excess, if any, of (a) the sum of

               (i) the aggregate Lease Balance of all Eligible Leases the
          related Leased Vehicle of which is a Medium-Duty Truck allocated to
          the Lease SUBI as of the last day of the Monthly Period immediately
          preceding such Settlement Date plus

               (ii) an amount equal to the aggregate for each Unit Vehicle which
          is a Medium-Duty Truck subject to a Closed-End Lease allocated to the
          Lease SUBI as of the last day of such Monthly Period of the lesser of
          (A) the Stated Residual Value of such Unit Vehicle and (B) the Net
          Book Value of such Unit Vehicle as of the last day of such Monthly
          Period;

     over (b) an amount equal to 15.0% of the Aggregate Unit Balance as of such
     Settlement Date.

          "Excess Trailer Amount" means, on any Settlement Date, an amount equal
     to the excess, if any, of (a) the sum of

<PAGE>
                                                                               6

               (i) the aggregate Lease Balance of all Eligible Leases the
          related Leased Vehicle of which is a Trailer allocated to the Lease
          SUBI as of the last day of the Monthly Period immediately preceding
          such Settlement Date plus

               (ii) an amount equal to the aggregate for each Unit Vehicle which
          is a Trailer subject to a Closed-End Lease allocated to the Lease SUBI
          as of the last day of such Monthly Period of the lesser of (A) the
          Stated Residual Value of such Unit Vehicle and (B) the Net Book Value
          of such Unit Vehicle as of the last day of such Monthly Period;

     over (b) an amount equal to 3% of the Aggregate Unit Balance as of such
     Settlement Date.

          "Excess Truck Amount" means, on any Settlement Date, an amount equal
     to the greater of (a) the sum of (i) the Excess Heavy-Duty Truck Amount on
     such Settlement Date and (ii) the Excess Medium-Duty Truck Amount on such
     Settlement Date and (b) an amount equal to the excess, if any, of (x) the
     sum of

               (i) the aggregate Lease Balance of all Eligible Leases the
          related Leased Vehicle of which is a Medium-Duty Truck or a Heavy-Duty
          Truck allocated to the Lease SUBI as of the last day of the Monthly
          Period immediately preceding such Settlement Date plus

               (ii) an amount equal to the aggregate for each Unit Vehicle which
          is a Medium-Duty Truck or a Heavy-Duty Truck subject to a Closed-End
          Lease allocated to the Lease SUBI as of the last day of such Monthly
          Period of the lesser of (A) the Stated Residual Value of such Unit
          Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last
          day of such Monthly Period;

     over (y) an amount equal to 21.5% of the Aggregate Unit Balance as of such
     Settlement Date.

          "Excess Truck Body Amount" means, on any Settlement Date, an amount
     equal to the excess, if any, of (a) the sum of

               (i) the aggregate Lease Balance of all Eligible Leases the
          related Leased Vehicle of which is a Truck Body allocated to the Lease
          SUBI as of the last day of the Monthly Period immediately preceding
          such Settlement Date plus

               (ii) an amount equal to the aggregate for each Unit Vehicle which
          is a Truck Body subject to a Closed-End Lease allocated to the Lease
          SUBI as of the last day of such Monthly Period of the lesser of (A)
          the Stated Residual Value of such Unit Vehicle and (B) the Net Book
          Value of such Unit Vehicle as of the last day of such Monthly Period;

     over (b) an amount equal to 2% of the Aggregate Unit Balance as of such
     Settlement Date.

<PAGE>
                                                                               7

          "Final Maturity Date" means the Class A-1 Final Maturity Date or the
     Class A-2 Final Maturity Date.

          "Forklift" means a high-lift, self-loading mobile vehicle, equipped
     with load carriage and forks, for transporting and tiering loads.

          "Gross Vehicle Weight" means the maximum manufacturer recommended
     weight that the axels of a Truck or Tractor can carry including the weight
     of the Truck or Tractor.

          "Heavy-Duty Truck" means a Truck or Tractor having a Gross Vehicle
     Weight of over 33,000 thousand pounds.

          "Indenture Supplement" has the meaning set forth in the preamble.

          "Interest Shortfall Amount" is defined in Section 5A.3(c).

          "LIBOR Determination Date" means, with respect to any Series 2003-2
     Interest Period, the second London Business Day next preceding the first
     day of such Series 2003-2 Interest Period.

          "Light-Duty Truck" means a Truck having a Gross Vehicle Weight of
     under 16,001 pounds.

          "London Business Day" means any day on which dealings in deposits in
     Dollars are transacted in the London interbank market and banking
     institutions in London are not authorized or obligated by law or regulation
     to close.

          "Medium-Duty Truck" means a Truck or Tractor having a Gross Vehicle
     Weight of between 16,001 thousand pounds and 33,000 thousand pounds.

          "Monthly Interest Payment" is defined in Section 5A.4(c)(v).

          "One-Month LIBOR" means, for each Series 2003-2 Interest Period, the
     rate per annum determined on the related LIBOR Determination Date by the
     Calculation Agent to be the rate for Dollar deposits having a maturity
     equal to one month that appears on Telerate Page 3750 at approximately
     11:00 a.m., London time, on such LIBOR Determination Date; provided,
     however, that if such rate does not appear on Telerate Page 3750, One-Month
     LIBOR will mean, for such 2003-2 Interest Period, the rate per annum equal
     to the arithmetic mean (rounded to the nearest one-one-hundred-thousandth
     of one percent) of the rates quoted by the Reference Banks to the
     Calculation Agent as the rates at which deposits in Dollars are offered by
     the Reference Banks at approximately 11:00 a.m., London time, on the LIBOR
     Determination Date to prime banks in the London interbank market for a
     period equal to one month; provided, further, that if fewer than two
     quotations are provided as requested by the Reference Banks, "One-Month
     LIBOR" for such Series 2003-2 Interest Period will mean the arithmetic mean
     (rounded to the nearest one-one-hundred-thousandth of one percent) of the
     rates quoted by major banks in New York, New York selected by the
     Calculation Agent, at

<PAGE>
                                                                               8

     approximately 10:00 a.m., New York City time, on the first day of such
     Series 2003-2 Interest Period for loans in Dollars to leading European
     banks for a period equal to one month; provided, finally, that if no such
     quotes are provided, "One-Month LIBOR" for such Series 2003-2 Interest
     Period will mean One-Month LIBOR as in effect with respect to the preceding
     Series 2003-2 Interest Period.

          "Outstanding" means, with respect to the Series 2003-2 Investor Notes,
     all Series 2003-2 Investor Notes theretofore authenticated and delivered
     under the Indenture, except (a) Series 2003-2 Investor Notes theretofore
     canceled or delivered to the Transfer Agent and Registrar for cancellation,
     (b) Series 2003-2 Investor Notes which have not been presented for payment
     but funds for the payment of which are on deposit in the Series 2003-2
     Distribution Account and are available for payment of such Series 2003-2
     Investor Notes, and Series 2003-2 Investor Notes which are considered paid
     pursuant to Section 11.1 of the Base Indenture, or (c) Series 2003-2
     Investor Notes in exchange for or in lieu of other Series 2003-2 Investor
     Notes which have been authenticated and delivered pursuant to the Indenture
     unless proof satisfactory to the Indenture Trustee is presented that any
     such Series 2003-2 Investor Notes are held by a purchaser for value.

          "Payment Date" means the 7th day of each month, or if such date is not
     a Business Day, the next succeeding Business Day, commencing December 8,
     2003.

          "PHH" means PHH Corporation and its successors and assigns.

          "Prepayment Date" is defined in Article 4.

          "Rating Agencies" means, with respect to the Series 2003-2 Investor
     Notes, Standard & Poor's, Moody's and any other nationally recognized
     rating agency rating the Series 2003-2 Investor Notes at the request of the
     Issuer.

          "Rating Agency Condition" means, with respect to any action specified
     herein as requiring satisfaction of the Rating Agency Condition, that each
     Rating Agency shall have been given 10 days' (or such shorter period as
     shall be acceptable to each Rating Agency) prior notice thereof and that
     each of the Rating Agencies shall have notified the Issuer and the
     Indenture Trustee in writing that such action will not result in a
     reduction or withdrawal of the then current rating of the Series 2003-2
     Investor Notes or of any Series 2003-2 Preferred Membership Interests.

          "Record Date" means, with respect to each Payment Date, the last day
     of the immediately preceding calendar month.

          "Reference Banks" means four major banks in the London interbank
     market selected by the Calculation Agent.

          "Series 2003-2" means Series 2003-2, the Principal Terms of which are
     set forth in this Indenture Supplement.

          "Series 2003-2 Administrator Fee" is defined in Section 5.2.

<PAGE>
                                                                               9

          "Series 2003-2 Allocated Adjusted Aggregate Unit Balance" means, as of
     any date of determination, the product of (a) the Adjusted Aggregate Unit
     Balance and (b) the percentage equivalent of a fraction the numerator of
     which is the Series 2003-2 Required Asset Amount as of such date and the
     denominator of which is the sum of (x) the Series 2003-2 Required Asset
     Amount and (y) the aggregate Required Asset Amounts with respect to each
     other Series of Investor Notes as of such date, including all Series of
     Investor Notes that have been paid in full but as to which the Amortization
     Period shall have not ended.

          "Series 2003-2 Allocated Asset Amount Deficiency" means, as of any
     date of determination, the amount, if any, by which the Series 2003-2
     Allocated Adjusted Aggregate Unit Balance is less than the Series 2003-2
     Required Asset Amount as of such date.

          "Series 2003-2 Amortization Period" means the period beginning at the
     earlier of (a) the close of business on the Business Day immediately
     preceding the day on which an Amortization Event is deemed to have occurred
     with respect to the Series 2003-2 Investor Notes and (b) the close of
     business on the Period End Date in May 2005 and ending on the date when (i)
     the Series 2003-2 Investor Notes are fully paid, (ii) all dividends accrued
     and accumulated on the Series 2003-2 Preferred Membership Interests shall
     have been declared and paid in full, (iii) the Series 2003-2 Preferred
     Membership Interests shall have been redeemed in accordance with their
     terms and (iv) all amounts owing in respect of the Series 2003-2 Preferred
     Membership Interests under the Series 2003-2 Preferred Membership Interest
     Purchase Agreement shall have been paid in full by the Issuer.

          "Series 2003-2 Available Excess Collections Amount" means, on any
     Business Day during the period commencing on a Period End Date to but
     excluding the next succeeding Settlement Date, an amount equal to the
     excess, if any, of (a) the amount deposited in the Series 2003-2 General
     Collection Subaccount during the immediately preceding Monthly Period
     pursuant to Section 5A.2(a) over (b) the sum of (i) the amounts to be
     distributed from the Series 2003-2 Settlement Collection Subaccount
     pursuant to paragraphs (i) through (xii) of Section 5A.4(c) on such
     Settlement Date, and (ii) any amounts owing in respect of the Series 2003-2
     Preferred Membership Interests under the Series 2003-2 Preferred Membership
     Interest Purchase Agreement on such Settlement Date.

          "Series 2003-2 Basic Servicing Fee" is defined in Section 5.1.

          "Series 2003-2 Closing Date" means [__________], 2003.

          "Series 2003-2 Collateral" means the Collateral, the Series 2003-2
     Reserve Account, the Series 2003-2 Yield Supplement Account, the Series
     2003-2 Distribution Account and the Series 2003-2 Lease Rate Caps.

          "Series 2003-2 Collection Subaccount" is defined in Section 5A.1(a).

<PAGE>
                                                                              10

          "Series 2003-2 Distribution Account" is defined in Section 5A.10(a).

          "Series 2003-2 Eligible Counterparty" means a financial institution
     having on the date of any acquisition of a Lease Rate Cap short-term debt
     ratings of at least A-1 by Standard & Poor's and P-1 by Moody's and
     long-term unsecured debt ratings of at least A+ by Standard & Poor's and
     Aa3 by Moody's.

          "Series 2003-2 Excess Fleet Receivable Amount" means, for any
     Settlement Date, an amount equal to the product of (a) the average daily
     Series 2003-2 Invested Percentage during the immediately preceding Monthly
     Period and (b) the Excess Fleet Receivable Amount for such Settlement Date.

          "Series 2003-2 Gain on Sale Account Percentage" means 10%.

          "Series 2003-2 Global Notes" is defined in Section 6.2.

          "Series 2003-2 Hypothetical Yield Shortfall Amount" means, for any
     Settlement Date, an amount equal to the product of (x) the excess, if any,
     of the Series 2003-2 Minimum Yield Rate for such Settlement Date over the
     CP Rate as of the last day of the immediately preceding Monthly Period, (y)
     the Series 2003-2 Invested Percentage on such Settlement Date of the
     aggregate Lease Balance of all Floating Rate Leases as of the last day of
     the immediately preceding Monthly Period and (z) 2.75.

          "Series 2003-2 Initial Invested Amount" means the sum of the Class A-1
     Initial Invested Amount and the Class A-2 Initial Invested Amount.

          "Series 2003-2 Interest Period" means a period commencing on and
     including a Payment Date and ending on and including the day preceding the
     next succeeding Payment Date; provided, however, that the initial Series
     2003-2 Interest Period shall commence on and include the Series 2003-2
     Closing Date and end on and include December 7, 2003.

          "Series 2003-2 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 as of such date.

          "Series 2003-2 Invested Percentage" means, with respect to any
     Business Day (i) during the Series 2003-2 Revolving Period, the percentage
     equivalent (which percentage shall never exceed 100%) of a fraction the
     numerator of which shall be equal to the Series 2003-2 Allocated Adjusted
     Aggregate Unit Balance as of the end of the immediately preceding Business
     Day and the denominator of which is the sum of the numerators used to
     determine invested percentages for allocations for all Series of Investor
     Notes (and all classes of such Series of Investor Notes), including all
     Series of Investor Notes that have been paid in full but as to which the
     Amortization Period has not ended, as of the end of such immediately
     preceding Business Day or (ii) during the Series 2003-2 Amortization
     Period, the percentage equivalent (which percentage shall never exceed
     100%) of a fraction the numerator of which shall be equal to the Series
     2003-2 Allocated Adjusted Aggregate Unit Balance as of the end of the
     Series 2003-2 Revolving Period, and the

<PAGE>
                                                                              11

     denominator of which is the sum of the numerators used to determine
     invested percentages for allocations for all Series of Investor Notes (and
     all classes of such Series of Investor Notes), including all Series of
     Investor Notes that have been paid in full but as to which the Amortization
     Period has not ended, as of the end of the immediately preceding Business
     Day.

          "Series 2003-2 Investor Noteholder" means, collectively, the Class A-1
     Investor Noteholders and the Class A-2 Investor Noteholders.

          "Series 2003-2 Investor Note Owner" means, with respect to a Series
     2003-2 Global Note, the Person who is the beneficial owner of an interest
     in such Series 2003-2 Global Note, as reflected on the books of DTC, or on
     the books of a Person maintaining an account with DTC (directly as a
     Clearing Agency Participant or as an indirect participant, in each case in
     accordance with the rules of DTC).

          "Series 2003-2 Investor Notes" means, collectively, the Class A-1
     Investor Notes and the Class A-2 Investor Notes.

          "Series 2003-2 Junior Preferred Membership Interests" means the Junior
     Preferred Membership Interests relating to the Series 2003-2 Investor
     Notes, if any, issued by the Issuer pursuant to the LLC Agreement.

          "Series 2003-2 Lease Rate Cap" means one or more interest rate caps
     whether now or hereafter existing or acquired, substantially in the form of
     Exhibit C, from a Series 2003-2 Eligible Counterparty.

          "Series 2003-2 Liquid Credit Enhancement Deficiency" means, on any
     date of determination, the amount by which the Series 2003-2 Reserve
     Account Amount is less than the Series 2003-2 Required Reserve Account
     Amount.

          "Series 2003-2 Minimum Yield Rate" means, for any Settlement Date, a
     rate per annum equal to the sum of (i) the Series 2003-2 Weighted Average
     Cost of Funds for such Settlement Date, (ii) 0.225% and (iii) 0.48%.

          "Series 2003-2 Monthly Interest" means, with respect to any Series
     2003-2 Interest Period, the sum of Class A-1 Monthly Interest and Class A-2
     Monthly Interest for such Series 2003-2 Interest Period.

          "Series 2003-2 Monthly Residual Value Gain" means, for any Settlement
     Date, an amount equal to the product of (a) the average daily Series 2003-2
     Invested Percentage during the immediately preceding Monthly Period and (b)
     the Monthly Residual Value Gain for such Settlement Date.

          "Series 2003-2 Note Rate" means the Class A-1 Note Rate or the Class
     A-2 Note Rate, as the context may require.

          "Series 2003-2 Note Termination Date" means the date on which the
     Series 2003-2 Investor Notes are fully paid.

<PAGE>
                                                                              12

          "Series 2003-2 Preferred Member Distribution Account" means the
     account established in respect of the Series 2003-2 Preferred Membership
     Interests pursuant to the LLC Agreement.

          "Series 2003-2 Preferred Members" means the registered holders of the
     Series 2003-2 Preferred Membership Interests.

          "Series 2003-2 Preferred Membership Interest Purchase Agreement"
     means, collectively, one or more purchase agreements among the Issuer, one
     or more purchasers of the Series 2003-2 Senior Preferred Membership
     Interests thereunder, any agents of such purchasers, any banks or other
     financial institutions providing liquidity funding to such purchasers and
     the Administrator, as the same may from time to time be amended,
     supplemented or otherwise modified in accordance with its terms, and one or
     more purchase agreements relating to the Series 2003-2 Junior Preferred
     Membership Interests among the Issuer, one or more purchasers of the Series
     2003-2 Junior Preferred Membership Interests and the Administrator, as the
     same may from time to time be amended, supplemented or otherwise modified
     in accordance with its terms.

          "Series 2003-2 Preferred Membership Interests" means the Series 2003-2
     Senior Preferred Membership Interests and the Series 2003-2 Junior
     Preferred Membership Interests, if any.

          "Series 2003-2 Principal Collection Subaccount" is defined in Section
     5A.1(a).

          "Series 2003-2 Principal Payment Amount" means, for any Settlement
     Date, an amount equal to the product of (a) the average daily Series 2003-2
     Invested Percentage during the immediately preceding Monthly Period and (b)
     the Principal Payment Amount for such Settlement Date.

          "Series 2003-2 Required Asset Amount" means, as of any date of
     determination, the sum of the Series 2003-2 Invested Amount and the Series
     2003-2 Required Overcollateralization Amount as of such date.

          "Series 2003-2 Required Enhancement Amount" means, on any date, the
     sum of (a) the Series 2003-2 Required Percentage on such date of the Series
     2003-2 Initial Invested Amount plus (b) the sum of:

               (i) if the Three-Month Average Residual Value Loss Ratio with
          respect to the most recent Settlement Date exceeded 12.50%, an amount
          equal to the product of (A) the Series 2003-2 Invested Percentage as
          of the last day of the Monthly Period immediately preceding such
          Settlement Date and (B) 90% of the amount by which the Aggregate
          Residual Value Amount exceeded the Excess Residual Value Amount, in
          each case, as of that date; plus

               (ii) the greater of

                    (A) the sum of:

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                                                                              13

                         (1) an amount equal to the product of (x) the Series
                    2003-2 Invested Percentage as of the last day of the Monthly
                    Period immediately preceding the most recent Settlement Date
                    and (y) the Excess Equipment Amount on such Settlement Date;

                         (2) an amount equal to the product of (x) the Series
                    2003-2 Invested Percentage as of the last day of the Monthly
                    Period immediately preceding the most recent Settlement Date
                    and (y) the Excess Forklift Amount on such Settlement Date;

                         (3) an amount equal to the product of (x) the Series
                    2003-2 Invested Percentage as of the last day of the Monthly
                    Period immediately preceding the most recent Settlement Date
                    and (y) the Excess Truck Amount on such Settlement Date;

                         (4) an amount equal to the product of (x) the Series
                    2003-2 Invested Percentage as of the last day of the Monthly
                    Period immediately preceding the most recent Settlement Date
                    and (y) the Excess Trailer Amount on such Settlement Date;
                    and

                         (5) an amount equal to the product of (x) the Series
                    2003-2 Invested Percentage as of the last day of the Monthly
                    Period immediately preceding the most recent Settlement Date
                    and (y) the Excess Truck Body Amount on such Settlement
                    Date; or

                    (B) an amount equal to the product of (x) the Series 2003-2
               Invested Percentage as of the last day of the Monthly Period
               immediately preceding such Settlement Date and (y) the Excess
               Alternative Vehicle Amount on such Settlement Date.

     ; provided, however, that, after the declaration or occurrence of an
     Amortization Event, the Series 2003-2 Required Enhancement Amount shall
     equal the Series 2003-2 Required Enhancement Amount on the date of the
     declaration or occurrence of such Amortization Event.

          "Series 2003-2 Required Investor Noteholders" means Series 2003-2
     Investor Noteholders holding more than 50% of the Series 2003-2 Invested
     Amount (excluding any Series 2003-2 Investor Notes held by the Issuer or
     any Affiliate of the Issuer).

          "Series 2003-2 Required Lease Rate Cap" means one or more Series
     2003-2 Lease Rate Caps having, in the aggregate, a notional amount on each
     Payment Date equal to the lesser of (x) the average daily Series 2003-2
     Invested Percentage during the Monthly Period immediately preceding such
     Payment Date of the aggregate Lease Balance of all Fixed Rate Leases
     allocated to the Lease SUBI Portfolio as of the last day of the immediately
     preceding Monthly Period that were not Fixed Rate Leases when initially
     allocated to the Lease SUBI Portfolio or on the Series 2003-2 Closing Date,
     plus, in the case of all such Fixed Rate Leases that are Closed-End Leases,
     the aggregate Stated

<PAGE>
                                                                              14

     Residual Values of the related Leased Vehicles and (y) the sum of the
     Series 2003-2 Invested Amount and the aggregate stated liquidation
     preference of the Series 2003-2 Preferred Membership Interests on such
     Payment Date and an effective strike rate based on the eurodollar rate set
     forth therein in effect on the dates set forth therein at the most equal to
     the weighted average fixed rate of interest on such Fixed Rate Leases minus
     0.705% per annum.

          "Series 2003-2 Required Overcollateralization Amount" means, on any
     date of determination during an Accrual Period, the amount by which the
     Series 2003-2 Required Enhancement Amount exceeds the sum of (a) the Series
     2003-2 Reserve Account Amount and (b) the amount on deposit in the Series
     2003-2 Principal Collection Subaccount on such date (excluding any amounts
     deposited therein pursuant to Section 5A.2(d) during the Monthly Period
     commencing after the first day of such Accrual Period).

          "Series 2003-2 Required Percentage" means, on any date of
     determination, 13.19% unless:

               (a) for the most recent Settlement Date all of the following were
          true:

               (i) the Three Month Average Charge-Off Ratio was 0.50 % or less;

               (ii) the Twelve Month Average Charge-Off Ratio was 0.25% or less;

               (iii) the Three Month Average Residual Value Loss Ratio was
          10.00% or less;

               (iv) the Twelve Month Average Residual Value Loss Ratio was 5.00%
          or less;

               (v) the Three Month Average Paid-In Advance Loss Ratio was 1.00%
          or less;

               (vi) the Twelve Month Average Paid-In Advance Loss Ratio was
          0.50% or less; and

               (vii) the Three Month Average Delinquency Ratio was 4.50% or
          less;

     in which case, the Series 2003-2 Required Percentage on such date will
     equal 12.36% or

               (b) for the most recent Settlement Date any one of the following
          was true:

               (i) the Three Month Average Charge-Off Ratio exceeded 0.75%;

               (ii) the Twelve Month Average Charge-Off Ratio exceeded 0.50%;

               (iii) the Three Month Average Residual Value Loss Ratio exceeded
          12.50%;

               (iv) the Twelve Month Average Residual Value Loss Ratio exceeded
          10.00%;

               (v) the Twelve Month Average Paid-In Advance Loss Ratio exceeded
          0.75%; or

<PAGE>
                                                                              15

               (vi) the Three Month Average Delinquency Ratio exceeded 6.00%;

     in which case, the Series 2003-2 Required Percentage on such date will
     equal 14.01%.

          "Series 2003-2 Required Reserve Account Amount" means an amount equal
     to 2.2032% of the Series 2003-2 Initial Invested Amount.

          "Series 2003-2 Required Yield Supplement Amount" means, on any
     Settlement Date, the excess, if any, of (a) the Series 2003-2 Yield
     Shortfall Amount for such Settlement Date over (b) 70% of the product of
     (x) the Series 2003-2 Invested Percentage on such Settlement Date and (y)
     the Class X 1999-1B Invested Amount as of such Settlement Date (after
     giving effect to any increase thereof on such Settlement Date); provided,
     however that upon the occurrence of a Receivable Purchase Termination
     Event, the Series 2003-2 Required Yield Supplement Amount on any Settlement
     Date will equal the Series 2003-2 Yield Shortfall Amount for such
     Settlement Date.

          "Series 2003-2 Reserve Account" is defined in Section 5A.8(a).

          "Series 2003-2 Reserve Account Amount" means, on any date of
     determination, the amount on deposit in the Series 2003-2 Reserve Account
     and available for withdrawal therefrom.

          "Series 2003-2 Reserve Account Surplus" means, on any date of
     determination, the amount, if any, by which the Series 2003-2 Reserve
     Account Amount exceeds the Series 2003-2 Required Reserve Account Amount.

          "Series 2003-2 Revolving Period" means the period from and including
     the Series 2003-2 Closing Date to but excluding the commencement of the
     Series 2003-2 Amortization Period.

          "Series 2003-2 Senior Preferred Membership Interests" means each
     series of Senior Preferred Membership Interests relating to the Series
     2003-2 Investor Notes issued by the Issuer pursuant to the LLC Agreement.

          "Series 2003-2 Series Servicing Fee Percentage" is defined in Section
     5.1.

          "Series 2003-2 Supplemental Servicing Fee" is defined in Section 5.1.

          "Series 2003-2 Settlement Collection Subaccount" is defined in Section
     5A.1(a).

          "Series 2003-2 Subaccounts" is defined in Section 5A.1(a).

          "Series 2003-2 Weighted Average Cost of Funds" means, for any
     Settlement Date, the product of (a) the quotient of the sum of (i) the
     aggregate amount of interest payable on the Series 2003-2 Investor Notes on
     such Settlement Date and (ii) the aggregate amount of dividends payable on
     the Series 2003-2 Preferred Membership Interests on such Settlement Date,
     divided by the sum of (i) the Series 2003-2 Invested Amount as of the first
     day of the immediately preceding Series 2003-2 Interest Period

<PAGE>
                                                                              16

     and (ii) the aggregate stated liquidation preference of the Series 2003-2
     Preferred Membership Interests as of such day and (b) a fraction, the
     numerator of which is 360 and the denominator of which is the number of
     days in the Series 2003-2 Interest Period ending on such Settlement Date.

          "Series 2003-2 Weighted Average Yield Shortfall" means, for any
     Settlement Date, the excess, if any, of (a) the Series 2003-2 Minimum Yield
     Rate for such Settlement Date over (b) the Series 2003-2 Weighted Average
     Yield Shortfall Lease Yield for such Settlement Date.

          "Series 2003-2 Weighted Average Yield Shortfall Lease Yield" means,
     for any Settlement Date, the quotient of the sum of the product with
     respect to each Series 2003-2 Yield Shortfall Lease of (a) the actual or
     implicit finance charge rate applicable to such Series 2003-2 Yield
     Shortfall Lease and (b) the Net Book Value of the Leased Vehicle subject to
     such Series 2003-2 Yield Shortfall Lease as of the last day of the
     immediately preceding Monthly Period divided by the aggregate Net Book
     Value of the Leased Vehicles subject to all of the Series 2003-2 Yield
     Shortfall Leases as of the last day of the immediately preceding Monthly
     Period.

          "Series 2003-2 Weighted Average Yield Shortfall Life" means, for any
     Settlement Date, 50% of the weighted (on the basis of Net Book Value of the
     related Leased Vehicle) average Assumed Lease Term of the Series 2003-2
     Yield Shortfall Leases, assuming that all scheduled lease payments are made
     thereon when scheduled and that the Obligors thereunder do not elect to
     convert such Series 2003-2 Yield Shortfall Leases to Fixed Rate Leases, as
     of the last day of the immediately preceding Monthly Period.

          "Series 2003-2 Yield Shortfall Amount" means, for any Settlement Date,
     (i) if the Series 2003-2 Hypothetical Yield Shortfall Amount for such
     Settlement Date is less than 70% of the product of the Series 2003-2
     Invested Percentage and the Class X 1999-1B Invested Amount as of such
     Settlement Date (after giving effect to any increase thereof on such
     Settlement Date), an amount equal to the Series 2003-2 Hypothetical Yield
     Shortfall Amount and (ii) otherwise, an amount equal to the product of (x)
     the Series 2003-2 Weighted Average Yield Shortfall for such Settlement
     Date, (y) the Series 2003-2 Invested Percentage on such Settlement Date of
     the aggregate Lease Balance of all Series 2003-2 Yield Shortfall Leases as
     of the last day of the immediately preceding Monthly Period and (z) the
     Series 2003-2 Weighted Average Yield Shortfall Life for such Settlement
     Date.

          "Series 2003-2 Yield Shortfall Lease" means, as of any Settlement
     Date, each Unit Lease that is a Floating Rate Lease with an actual or
     implicit finance charge rate of less than the Series 2003-2 Minimum Yield
     Rate as of the last day of the immediately preceding Monthly Period.

          "Series 2003-2 Yield Supplement Account" is defined in Section
     5A.9(a).

<PAGE>
                                                                              17

          "Series 2003-2 Yield Supplement Account Amount" means, on any date of
     determination, the amount on deposit in the Series 2003-2 Yield Supplement
     Account and available for withdrawal therefrom.

          "Series 2003-2 Yield Supplement Account Surplus" means, on any date of
     determination, the amount, if any, by which the Series 2003-2 Yield
     Supplement Account Amount exceeds the Series 2003-2 Required Yield
     Supplement Amount.

          "Series 2003-2 Yield Supplement Deficiency" means, on any date of
     determination, the amount by which the Series 2003-2 Yield Supplement
     Account Amount is less than the Series 2003-2 Required Yield Supplement
     Amount.

          "Telerate Page 3750" has the meaning set forth in the International
     Swaps Derivatives Association, Inc. 1991 Interest Rate and Currency
     Exchange Definitions.

          "Total Cash Available" means, for any Settlement Date, the excess, if
     any, of (a) the sum of (i) the aggregate amount of Collections allocated to
     the Series 2003-2 General Collection Subaccount pursuant to Section 5A.2(a)
     during the immediately preceding Monthly Period, (ii) an amount equal to
     the product of the average daily Series 2003-2 Invested Percentage during
     such Monthly Period and the amount of the Unit Repurchase Payments paid by
     the Servicer and/or SPV on such Settlement Date, (iii) an amount equal to
     the product of the average daily Series 2003-2 Invested Percentage during
     such Monthly Period and the amount of the Monthly Servicer Advance made by
     the Servicer on such Settlement Date, (iv) an amount equal to the product
     of the average daily Series 2003-2 Invested Percentage during such Monthly
     Period and the amount withdrawn from the Gain on Sale Account pursuant to
     Section 5.2(e) of the Base Indenture on the Transfer Date immediately
     preceding such Settlement Date and (v) the investment income on amounts on
     deposit in the Series 2003-2 Principal Collection Subaccount and the Series
     2003-2 General Collection Subaccount transferred to the Series 2003-2
     Settlement Collection Subaccount on such Settlement Date pursuant to
     Section 5A.1(b) over (b) the amount withdrawn from the Series 2003-2
     General Collection Subaccount pursuant to Section 5A.2(f) during the period
     commencing on the Period End Date immediately preceding such Settlement
     Date to but excluding such Settlement Date.

          "Tractor" means a vehicle designed to pull a Trailer by means of a
     fifth wheel mounted over its rear axel.

          "Trailer" means a truck trailer supported at the rear by its own
     wheels and at the front by a fifth wheel mounted to a Tractor.

          "Truck" means a vehicle that carries cargo in a body mounted to its
     chassis rather than in a Trailer towed by the vehicle.

          "Truck Body" means the outer shell of a motor vehicle that is mounted
     to a cab chassis and that covers that chassis from the back of the cab to
     the end of the body. A Vehicle shall not be a Truck Body if it also
     includes the cab.

<PAGE>
                                                                              18

                                   ARTICLE II

                         ARTICLE 5 OF THE BASE INDENTURE

          Sections 5.1 through 5.4 of the Base Indenture and each other Section
of Article 5 of the Indenture relating to another Series shall read in their
entirety as provided in the Base Indenture or any applicable Indenture
Supplement. Article 5 of the Indenture (except for Sections 5.1 through 5.4
thereof and any portion thereof relating to another Series) shall read in its
entirety as follows and shall be exclusively applicable to the Series 2003-2
Investor Notes:

          Section 5A.1 Establishment of Series 2003-2 Subaccounts.

          (a) The Indenture Trustee shall establish and maintain in the name of
the Indenture Trustee for the benefit of the Series 2003-2 Investor Noteholders
(i) a subaccount of the Collection Account (the "Series 2003-2 Collection
Subaccount"); and (ii) three subaccounts of the Series 2003-2 Collection
Subaccount: (1) the Series 2003-2 General Collection Subaccount, (2) the Series
2003-2 Principal Collection Subaccount and (3) the Series 2003-2 Settlement
Collection Subaccount (respectively, the "Series 2003-2 General Collection
Subaccount," the "Series 2003-2 Principal Collection Subaccount" and the "Series
2003-2 Settlement Collection Subaccount"); the accounts established pursuant to
this Section 5A.1(a), collectively, the "Series 2003-2 Subaccounts"), each
Series 2003-2 Subaccount to bear a designation indicating that the funds
deposited therein are held for the benefit of the Series 2003-2 Investor
Noteholders. The Indenture Trustee shall possess all right, title and interest
in all moneys, instruments, securities and other property on deposit from time
to time in the Series 2003-2 Subaccounts and the proceeds thereof for the
benefit of the Series 2003-2 Investor Noteholders. The Series 2003-2 Subaccounts
shall be under the sole dominion and control of the Indenture Trustee for the
benefit of the Series 2003-2 Investor Noteholders.

          (b) The Issuer shall instruct the institution maintaining the
Collection Account in writing to invest funds on deposit in the Series 2003-2
Subaccounts at all times in Permitted Investments selected by the Issuer (by
standing instructions or otherwise); provided, however, that funds on deposit in
a Series 2003-2 Subaccount may be invested together with funds held in other
subaccounts of the Collection Account. Amounts on deposit and available for
investment in the Series 2003-2 General Collection Subaccount shall be invested
by the Indenture Trustee at the written direction of the Issuer in Permitted
Investments that mature, or that are payable or redeemable upon demand of the
holder thereof, on or prior to the Business Day immediately preceding the next
Payment Date. Amounts on deposit and available for investment in the Series
2003-2 Principal Collection Subaccount shall be invested by the Indenture
Trustee at the written direction of the Issuer in Permitted Investments that
mature, or that are payable or redeemable upon demand of the holder thereof, (i)
in the case of any such investment made during the Series 2003-2 Revolving
Period, on or prior to the next Business Day and (ii) in the case of any such
investment made on any day during the Series 2003-2 Amortization Period, on or
prior to the Business Day immediately preceding the next Payment Date. On each
Settlement Date, all interest and other investment earnings (net of losses and
investment expenses) on funds deposited in the Series 2003-2 Principal
Collection Subaccount and the Series 2003-2 General Collection Subaccount shall
be deposited in the Series 2003-2 Settlement Collection Subaccount. The Issuer
shall not direct the Indenture Trustee to dispose of (or permit the disposal of)
any

<PAGE>
                                                                              19

Permitted Investments prior to the maturity thereof to the extent such disposal
would result in a loss of principal of such Permitted Investment. In the absence
of written direction as provided hereunder, all funds on deposit in the
Collection Account shall remain uninvested.

          Section 5A.2 Allocations with Respect to the Series 2003-2 Investor
Notes.

          (a) Prior to 1:00 P.M., New York City time, on each Deposit Date, the
Administrator shall direct the Indenture Trustee in writing to allocate to the
Series 2003-2 Investor Noteholders and deposit in the Series 2003-2 General
Collection Subaccount an amount equal to the product of the Series 2003-2
Invested Percentage on such Deposit Date and the Collections deposited into the
Collection Account on such Deposit Date.

          (b) On the Series 2003-2 Closing Date, the Indenture Trustee shall (i)
deposit $[__________] of the net proceeds from the sale of the Series 2003-2
Investor Notes in the Series 2003-2 Settlement Collection Subaccount, (ii)
deposit $11,016,000 of the net proceeds from the sale of the Series 2003-2
Investor Notes in the Series 2003-2 Reserve Account and (iii) deposit the
remainder of the net proceeds from the sale of the Series 2003-2 Investor Notes
in the Series 2003-2 Principal Collection Subaccount.

          (c) On each Determination Date, the Administrator shall direct the
Indenture Trustee in writing to allocate to the Series 2003-2 Investor
Noteholders and deposit in the Series 2003-2 Settlement Collection Subaccount on
the immediately succeeding Transfer Date amounts withdrawn from the Gain on Sale
Account on such Transfer Date, in an amount equal to the product of the average
daily Series 2003-2 Invested Percentage during the immediately preceding Monthly
Period and the amount withdrawn from the Gain on Sale Account pursuant to
Section 5.2(e) of the Base Indenture on such Transfer Date.

          (d) On each Determination Date, the Administrator shall direct the
Indenture Trustee in writing to allocate to the Series 2003-2 Investor
Noteholders and deposit in the Series 2003-2 Settlement Collection Subaccount on
the immediately succeeding Settlement Date the following amounts:

          (i) any Unit Repurchase Payments made by the Servicer and/or SPV, in
     an amount equal to the product of the average daily Series 2003-2 Invested
     Percentage during the immediately preceding Monthly Period and the amount
     of such Unit Repurchase Payments;

          (ii) the Monthly Servicer Advance made by the Servicer, in an amount
     equal to the product of the average daily Series 2003-2 Invested Percentage
     during the immediately preceding Monthly Period and the amount of such
     Monthly Servicer Advance;

          (iii) payments made under the Lease Rate Caps maintained by the Issuer
     pursuant to Sections 5A.11(a) and (b), in an amount equal to the product of
     the average daily Series 2003-2 Invested Percentage during the immediately
     preceding Monthly Period and the amount of such payments; and

<PAGE>
                                                                              20

          (iv) all payments made to the Indenture Trustee under the Series
     2003-2 Lease Rate Cap.

          (e) During the Series 2003-2 Revolving Period, the Administrator may
direct the Indenture Trustee in writing on any Business Day to withdraw amounts
on deposit in the Series 2003-2 Principal Collection Subaccount for either of
the following purposes:

          (i) if such Business Day is an Additional Closing Date, to remit all
     or a portion of the Transferred Asset Payment due on such Additional
     Closing Date pursuant to the Transfer Agreement; or

          (ii) to reduce the Invested Amount of any Series of Investor Notes.

          (f) Prior to the occurrence of a Potential Amortization Event or an
Amortization Event, on any Business Day during the period commencing on a Period
End Date to but excluding the next succeeding Settlement Date on which the
Administrator is able to determine the amounts to be distributed from the Series
2003-2 Settlement Collection Subaccount pursuant to paragraphs (i) through (xii)
of Section 5A.4(c) on such Settlement Date and any amounts owing in respect of
the Series 2003-2 Preferred Membership Interests under the Series 2003-2
Preferred Membership Interest Purchase Agreement on such Settlement Date, the
Administrator may direct the Indenture Trustee in writing to withdraw from the
Series 2003-2 General Collection Subaccount and remit to the Issuer the Series
2003-2 Available Excess Collections Amount for such Business Day.

          Section 5A.3 Determination of Interest.

          (a) JPMorgan Chase is hereby appointed Calculation Agent for the
purpose of determining the Series 2003-2 Note Rates for each Series 2003-2
Interest Period. On each LIBOR Determination Date, the Calculation Agent shall
determine the Series 2003-2 Note Rate for each Class of Series 2003-2 Investor
Notes for the next succeeding Series 2003-2 Interest Period and deliver notice
of such Series 2003-2 Note Rates to the Indenture Trustee. On each LIBOR
Determination Date, the Indenture Trustee shall deliver to the Administrator
notice of the Series 2003-2 Note Rate for each Class of Series 2003-2 Investor
Notes for the next succeeding Series 2003-2 Interest Period.

          (b) Until the Administrator shall give the Indenture Trustee written
notice that neither Class of the Series 2003-2 Investor Notes is listed on the
Luxembourg Stock Exchange, the Indenture Trustee shall, or shall instruct the
Calculation Agent to, cause (i) the Series 2003-2 Note Rate applicable to each
Class of the Series 2003-2 Investor Notes for the next succeeding Series 2003-2
Interest Period, the number of days in such Series 2003-2 Interest Period, the
Payment Date for such Series 2003-2 Interest Period and the amount of interest
payable on each Class of Series 2003-2 Investor Notes on such Payment Date to be
(A) communicated to DTC, the Paying Agent in Luxembourg and the Luxembourg Stock
Exchange no later than the Business Day immediately following each LIBOR
Determination Date and (B) published in the Authorized Newspaper as soon as
possible after its determination.

<PAGE>
                                                                              21

          (c) On each Determination Date, the Administrator shall determine the
excess, if any (the "Interest Shortfall Amount"), of (i) the sum of (A) the
Series 2003-2 Monthly Interest for the Series 2003-2 Interest Period ending on
the next succeeding Payment Date and (B) the amount of any unpaid Interest
Shortfall Amount, as of the preceding Payment Date (together with any Additional
Interest on such Interest Shortfall Amount) over (ii) the amount which will be
available to pay interest on the Series 2003-2 Investor Notes in accordance with
Section 5A.4(c) on such Payment Date. If the Interest Shortfall Amount with
respect to any Payment Date is greater than zero, payments of interest to the
Series 2003-2 Investor Noteholders will be reduced on a pro rata basis, based on
the amount of interest payable to each such Series 2003-2 Investor Noteholder,
by the Interest Shortfall Amount. The portion of the Interest Shortfall Amount
allocable to each Class of Series 2003-2 Investor Notes shall be referred to as
the "Class A-1 Interest Shortfall Amount" and the "Class A-2 Interest Shortfall
Amount", respectively. An additional amount of interest ("Additional Interest")
shall accrue on the Class A-1 Interest Shortfall Amount and the Class A-2
Interest Shortfall Amount for each Series 2003-2 Interest Period at the
applicable Series 2003-2 Note Rate for such Series 2003-2 Interest Period. Until
the Administrator shall give the Indenture Trustee written notice that neither
Class of the Series 2003-2 Investor Notes is listed on the Luxembourg Stock
Exchange, the Indenture Trustee shall, or shall instruct the Calculation Agent
to, notify the Luxembourg Stock Exchange if, based solely on the information
contained in the Monthly Settlement Statement with respect to the Series 2003-2
Investor Notes, the amount of interest to be paid on any Class of the Series
2003-2 Investor Notes on any Payment Date is less than the amount payable
thereon on such Payment Date, the amount of such deficit and the amount of
interest that will accrue on such deficit during the next succeeding Series
2003-2 Interest Period by the Business Day prior to such Payment Date.

          (d) All communications by or on behalf of the Indenture Trustee to the
Luxembourg Stock Exchange pursuant to this Section 5A.3 shall be sent by
electronic mail to The Bank of New York c/o listings@bankofny.com.

          Section 5A.4 Monthly Application of Collections.

          (a) On each Settlement Date, the Administrator shall direct the
Indenture Trustee in writing to withdraw from the Series 2003-2 General
Collection Subaccount and allocate to the Series 2003-2 Settlement Collection
Subaccount an amount equal to Total Cash Available for such Settlement Date
(less an amount equal to the investment income from the Series 2003-2 General
Collection Subaccount and the Series 2003-2 Principal Collection Subaccount
transferred to the Series 2003-2 Settlement Collection Subaccount pursuant to
Section 5A.1(b)).

          (b) (i) If the Administrator determines that the aggregate amount
distributable from the Series 2003-2 Settlement Collection Subaccount pursuant
to paragraphs (i) through (ix) of Section 5A.4(c) on any Payment Date exceeds
the Total Cash Available for such Payment Date (the "Deficiency"), the
Administrator shall notify the Indenture Trustee thereof in writing at or before
10:00 a.m., New York City time, on the Business Day immediately preceding such
Payment Date, and the Indenture Trustee shall, in accordance with such notice,
by 11:00 a.m., New York City time, on such Payment Date, withdraw from the
Series 2003-2 Reserve Account and deposit in the Series 2003-2 Settlement
Collection Subaccount an amount equal to the least of (x) such Deficiency, (y)
the product of the average daily Series 2003-2 Invested Percentage

<PAGE>
                                                                              22

during the immediately preceding Monthly Period and Aggregate Net Lease Losses
for such Monthly Period and (z) the Series 2003-2 Reserve Account Amount and, to
the extent that such amount is less than the Deficiency, withdraw from the
Series 2003-2 Yield Supplement Account and deposit in the Series 2003-2
Settlement Collection Subaccount an amount equal to the lesser of the amount of
such insufficiency and the Series 2003-2 Yield Supplement Account Amount. If the
Deficiency with respect to any Payment Date exceeds the amounts to be withdrawn
from the Series 2003-2 Reserve Account and the Series 2003-2 Yield Supplement
Account pursuant to the immediately preceding sentence, the Administrator shall
instruct the Indenture Trustee in writing at or before 10:00 a.m., New York City
time, on the Business Day immediately preceding such Payment Date, and the
Indenture Trustee shall, in accordance with such notice, by 11:00 a.m., New York
City time, on such Payment Date, withdraw from the Series 2003-2 Reserve Account
and deposit in the Series 2003-2 Settlement Collection Subaccount an amount
equal to the lesser of (x) the remaining portion of the Deficiency and (y) the
Series 2003-2 Reserve Account Amount (after giving effect to the withdrawal
described in the immediately preceding sentence).

          (ii) If the Administrator determines that (A) the amount to be
deposited in the Series 2003-2 Distribution Account in accordance with Section
5A.4(c)(ix) and paid to the Class A-1 Investor Noteholders pursuant to Section
5A.6 on the Class A-1 Final Maturity Date is less than the Class A-1 Invested
Amount or (B) the amount to be deposited in the Series 2003-2 Distribution
Account in accordance with Section 5A.4(c)(ix) and paid to the Class A-2
Investor Noteholders pursuant to Section 5A.6 on the Class A-2 Final Maturity
Date is less than the Class A-2 Invested Amount, the Administrator shall notify
the Indenture Trustee thereof in writing at or before 10:00 a.m., New York City
time, on the Business Day immediately preceding such Final Maturity Date, and
the Indenture Trustee shall, in accordance with such notice, by 11:00 a.m., New
York City time, on such Final Maturity Date, withdraw from the Series 2003-2
Reserve Account and deposit in the Series 2003-2 Distribution Account an amount
equal to the lesser of such insufficiency and the Series 2003-2 Reserve Account
Amount (after giving effect to any withdrawal therefrom pursuant to Section
5A.4(b)(i) on such Final Maturity Date). In addition, if the Series 2003-2
Reserve Account Amount is less than such insufficiency on the Class A-2 Final
Maturity Date, the Administrator shall notify the Indenture Trustee thereof in
writing at or before 10:00 a.m., New York City time, on the Business Day
immediately preceding the Class A-2 Final Maturity Date, and the Indenture
Trustee shall, in accordance with such notice, by 11:00 a.m., New York City
time, on the Class A-2 Final Maturity Date, withdraw from the Series 2003-2
Yield Supplement Account and deposit in the Series 2003-2 Distribution Account
an amount equal to the lesser of such remaining insufficiency and the Series
2003-2 Yield Supplement Account Amount (after giving effect to any withdrawal
therefrom pursuant to Section 5A.4(b)(i) on the Class A-2 Final Maturity Date).

          (c) On each Payment Date, based solely on the information contained in
the Monthly Settlement Statement with respect to Series 2003-2 Investor Notes,
the Indenture Trustee shall apply the following amounts allocated to, or
deposited in, the Series 2003-2 Settlement Collection Subaccount on such Payment
Date in the following order of priority:

          (i) to SPV, an amount equal to the Series 2003-2 Excess Fleet
     Receivable Amount, if any, for such Payment Date;

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                                                                              23

          (ii) to the Gain On Sale Account, an amount equal to the Series 2003-2
     Monthly Residual Value Gain, if any, for such Payment Date;

          (iii) to the Servicer, an amount equal to the product of the Monthly
     Servicer Advance Reimbursement Amount for such Payment Date and the average
     daily Series 2003-2 Invested Percentage during the immediately preceding
     Monthly Period;

          (iv) if VMS is not the Servicer, to the Servicer, an amount equal to
     the Series 2003-2 Basic Servicing Fee for the Series 2003-2 Interest Period
     ending on such Payment Date plus, on the first Payment Date following the
     transfer of the servicing from VMS to a successor Servicer pursuant to
     Section 9.1 of the Series 1999-1 SUBI Servicing Supplement, to the extent
     not reimbursed by VMS, the reasonable costs and expenses of the successor
     Servicer incurred in connection with the transfer of the servicing, in an
     amount up to $250,000;

          (v) to the Series 2003-2 Distribution Account, an amount equal to the
     Series 2003-2 Monthly Interest payable on such Payment Date plus the amount
     of any unpaid Interest Shortfall Amount, as of the preceding Payment Date,
     together with any Additional Interest on such Interest Shortfall Amount
     (such amount, the "Monthly Interest Payment");

          (vi) if VMS is the Servicer, to the Servicer, an amount equal to the
     Series 2003-2 Basic Servicing Fee for the Series 2003-2 Interest Period
     ending on such Payment Date;

          (vii) to the Administrator, an amount equal to the Series 2003-2
     Administrator Fee for the Series 2003-2 Interest Period ending on such
     Payment Date;

          (viii) other than during a Lockout Period, to the Series 2003-2
     Preferred Member Distribution Account, an amount equal to the Dividend
     Amount for such Payment Date;

          (ix) (A) on any Payment Date immediately succeeding a Monthly Period
     falling in the Series 2003-2 Revolving Period, to the Series 2003-2
     Principal Collection Subaccount, an amount equal to the Series 2003-2
     Allocated Asset Amount Deficiency, if any, on such Payment Date, (B) on the
     earlier of (x) the second Payment Date following the May 2005 Period End
     Date or (y) the first Payment Date following the occurrence of an
     Amortization Event, to the Series 2003-2 Distribution Account, an amount
     equal to the lesser of the Series 2003-2 Principal Payment Amount for such
     Payment Date and the Series 2003-2 Invested Amount on such Payment Date and
     (C) if any Series 2003-2 Preferred Membership Interests are issued and
     outstanding, on any Payment Date on and after the Series 2003-2 Note
     Termination Date, to the Series 2003-2 Preferred Member Distribution
     Account, an amount equal to the Series 2003-2 Principal Payment Amount for
     such Payment Date (or, on the Series 2003-2 Note Termination Date, the
     portion thereof not deposited into the Series 2003-2 Distribution Account);
     provided, however that on or after the Series 2003-2 Note Termination Date
     during a Lockout Period, the Series 2003-2 Principal Payment Amount for
     such Payment Date (or, on the Series 2003-2 Note Termination Date, the
     portion thereof not deposited into the Series 2003-2

<PAGE>
                                                                              24

     Distribution Account) shall be applied by the Indenture Trustee in
     accordance with Section 5.4(d) of the Base Indenture;

          (x) to the Series 2003-2 Reserve Account, to the extent that a Series
     2003-2 Liquid Credit Enhancement Deficiency exists or, on any Payment Date
     immediately succeeding a Monthly Period falling in the Series 2003-2
     Amortization Period, to the extent that a Series 2003-2 Allocated Asset
     Amount Deficiency exists, an amount equal to the greater of such
     deficiencies;

          (xi) to the Series 2003-2 Yield Supplement Account, to the extent that
     a Series 2003-2 Yield Supplement Deficiency exists (or, will exist after
     giving effect to any reduction in the Class X 1999-1B Invested Amount on
     such Payment Date), an amount equal to such deficiency;

          (xii) if VMS is not the Servicer, to the Servicer, an amount equal to
     any Series 2003-2 Supplemental Servicing Fee for the Series 2003-2 Interest
     Period ending on such Payment Date;

          (xiii) if any Series 2003-2 Preferred Membership Interests are issued
     and outstanding, to the Series 2003-2 Preferred Member Distribution
     Account, an amount equal to the balance remaining in the Series 2003-2
     Settlement Collection Subaccount;

          (xiv) if no Series 2003-2 Preferred Membership Interests are issued
     and outstanding, to, or at the written direction of, the Issuer, an amount
     equal to the balance remaining in the Series 2003-2 Settlement Collection
     Subaccount.

          Section 5A.5 Payment of Monthly Interest Payment.

          On each Payment Date, based solely on the information contained in the
Monthly Settlement Statement with respect to the Series 2003-2 Investor Notes,
the Indenture Trustee shall, in accordance with Section 6.1 of the Base
Indenture, distribute to the Series 2003-2 Investor Noteholders, from the Series
2003-2 Distribution Account the Monthly Interest Payment to the extent of the
amount deposited in the Series 2003-2 Distribution Account for the payment of
interest pursuant to Section 5A.4(c)(v).

          Section 5A.6 Payment of Principal.

          (a) The principal amount of each Class of the Series 2003-2 Investor
Notes shall be due and payable on the Final Maturity Date with respect to such
Class.

          (b) On each Payment Date on which a deposit is made to the Series
2003-2 Distribution Account pursuant to Section 5A.4(c)(ix) or an amount is
deposited in the Series 2003-2 Distribution Account pursuant to Section
5A.4(b)(ii), based solely on the information contained in the Monthly Settlement
Statement with respect to Series 2003-2 Investor Notes, the Indenture Trustee
shall, in accordance with Section 6.1 of the Base Indenture, distribute during
the Series 2003-2 Amortization Period, pro rata to each Class A-1 Investor
Noteholder from the Series 2003-2 Distribution Account the amount deposited
therein pursuant to Section 5A.4(c)(ix) and Section 5A.4(b)(ii) in order to pay
the Class A-1 Invested Amount, and thereafter pro rata to

<PAGE>
                                                                              25

each Class A-2 Investor Noteholder from the Series 2003-2 Distribution
Account the amount deposited therein pursuant to Section 5A.4(c)(ix) and Section
5A.4(b)(ii) in order to pay the Class A-2 Invested Amount; provided however that
on any Payment Date falling after the occurrence of an Amortization Event
resulting from the occurrence of an Event of Default described in Section
9.1(a), (b) or (f) of the Base Indenture the Indenture Trustee shall distribute
pro rata to each Series 2003-2 Investor Noteholder from the Series 2003-2
Distribution Account the amounts deposited therein pursuant to Section
5A.4(c)(ix) and Section 5A.4(b)(ii) in order to pay the Class A-1 Invested
Amount and the Class A-2 Invested Amount.

          (c) The Indenture Trustee shall notify the Person in whose name a
Series 2003-2 Investor Note is registered at the close of business on the Record
Date preceding the Payment Date on which the Issuer expects that the final
installment of principal of and interest on such Series 2003-2 Investor Note
will be paid. Such notice shall be made at the expense of the Administrator and
shall be mailed within three (3) Business Days of receipt of a Monthly
Settlement Statement indicating that such final payment will be made and shall
specify that such final installment will be payable only upon presentation and
surrender of such Series 2003-2 Investor Note and shall specify the place where
such Series 2003-2 Investor Note may be presented and surrendered for payment of
such installment. Notices in connection with redemptions of Series 2003-2
Investor Notes shall be (i) transmitted by facsimile to Series 2003-2 Investor
Noteholders holding Global Notes and (ii) sent by registered mailed to Series
2003-2 Investor Noteholders holding Definitive Notes and shall specify that such
final installment will be payable only upon presentation and surrender of such
Series 2003-2 Investor Note and shall specify the place where such Series 2003-2
Investor Note may be presented and surrendered for payment of such installment.

          Section 5A.7 The Administrator's Failure to Instruct the Indenture
Trustee to Make a Deposit or Payment.

          When any payment or deposit hereunder or under any other Transaction
Document is required to be made by the Indenture Trustee at or prior to a
specified time, the Administrator shall deliver any applicable written
instructions with respect thereto reasonably in advance of such specified time.
If the Administrator fails to give notice or instructions to make any payment
from or deposit into the Collection Account or any subaccount thereof required
to be given by the Administrator, at the time specified herein or in any other
Transaction Document (after giving effect to applicable grace periods), the
Indenture Trustee shall make such payment or deposit into or from the Collection
Account or such subaccount without such notice or instruction from the
Administrator; provided that the Administrator, upon request of the Indenture
Trustee, promptly provides the Indenture Trustee with all information necessary
to allow the Indenture Trustee to make such a payment or deposit in the event
that the Indenture Trustee shall take or refrain from taking action pursuant to
this Section 5A.7, the Administrator shall, by 5:00 p.m., New York City time, on
any day the Indenture Trustee makes a payment or deposit based on information or
direction from the Administrator, provide (i) written confirmation of any such
direction and (ii) written confirmation of all information used by the
Administrator in giving any such direction.

          Section 5A.8 Series 2003-2 Reserve Account.

<PAGE>
                                                                              26

          (a) The Indenture Trustee shall establish and maintain in the name of
the Indenture Trustee for the benefit of the Series 2003-2 Investor Noteholders
an account (the "Series 2003-2 Reserve Account"), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2003-2 Investor Noteholders. The Series 2003-2 Reserve Account shall be
an Eligible Deposit Account; provided that, if at any time such account is not
an Eligible Deposit Account, then the Indenture Trustee shall, within 30 days of
obtaining knowledge of such reduction, establish a new Series 2003-2 Reserve
Account that is an Eligible Deposit Account. If the Indenture Trustee
establishes a new Series 2003-2 Reserve Account, it shall transfer all cash and
investments from the non-qualifying Series 2003-2 Reserve Account into the new
Series 2003-2 Reserve Account. Initially, the Series 2003-2 Reserve Account will
be established with JPMorgan Chase Bank.

          (b) The Issuer may instruct the institution maintaining the Series
2003-2 Reserve Account in writing to invest funds on deposit in the Series
2003-2 Reserve Account from time to time in Permitted Investments selected by
the Issuer (by standing instructions or otherwise); provided, however, that any
such investment shall mature not later than the Business Day prior to the
Payment Date following the date on which such funds were received. All such
Permitted Investments will be credited to the Series 2003-2 Reserve Account and
any such Permitted Investments that constitute (i) Physical Property (and that
is not either a United States Security Entitlement or a Security Entitlement)
shall be delivered to the Indenture Trustee in accordance with paragraph (a) of
the definition of "Delivery" and shall be held by the Indenture Trustee pending
maturity or disposition; (ii) United States Security Entitlements or Security
Entitlements shall be Controlled by the Indenture Trustee pending maturity or
disposition; and (iii) Uncertificated Securities (and not United States Security
Entitlements) shall be delivered to the Indenture Trustee in accordance with
paragraph (b) of the definition of "Delivery" and shall be maintained by the
Indenture Trustee pending maturity or disposition. The Indenture Trustee shall,
at the direction and expense of the Administrator, take such additional action
as is required to maintain the Indenture Trustee's security interest in the
Permitted Investments credited to the Series 2003-2 Reserve Account. In absence
of written direction as provided hereunder, funds on deposit in the Series
2003-2 Reserve Account shall remain uninvested.

          (c) All interest and earnings (net of losses and investment expenses)
paid on funds on deposit in the Series 2003-2 Reserve Account shall be deemed to
be on deposit and available for distribution.

          (d) If there is a Series 2003-2 Reserve Account Surplus on any
Settlement Date, the Administrator may notify the Indenture Trustee thereof in
writing and instruct the Indenture Trustee to withdraw from the Series 2003-2
Reserve Account and deposit in the Series 2003-2 Preferred Member Distribution
Account, and the Indenture Trustee shall withdraw from the Series 2003-2 Reserve
Account and deposit in the Series 2003-2 Preferred Member Distribution Account,
so long as no Series 2003-2 Allocated Asset Amount Deficiency exists or would
result therefrom, an amount up to the lesser of (i) such Series 2003-2 Reserve
Account Surplus on such Business Day and (ii) the Series 2003-2 Reserve Account
Amount on such Business Day.

          (e) Amounts will be withdrawn from the Series 2003-2 Reserve Account
in accordance with Section 5A.4(b).

<PAGE>
                                                                              27

          (f) In order to secure and provide for the repayment and payment of
the Issuer Obligations with respect to the Series 2003-2 Investor Notes, the
Issuer hereby grants a security interest in and assigns, pledges, grants,
transfers and sets over to the Indenture Trustee, for the benefit of the Series
2003-2 Investor Noteholders, all of the Issuer's right, title and interest in
and to the following (whether now or hereafter existing or acquired): (i) the
Series 2003-2 Reserve Account, including any security entitlement thereto; (ii)
all funds on deposit therein from time to time; (iii) all certificates and
instruments, if any, representing or evidencing any or all of the Series 2003-2
Reserve Account or the funds on deposit therein from time to time; (iv) all
investments made at any time and from time to time with monies in the Series
2003-2 Reserve Account, whether constituting securities, instruments, general
intangibles, investment property, financial assets or other property; (v) all
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
the Series 2003-2 Reserve Account, the funds on deposit therein from time to
time or the investments made with such funds; and (vi) all proceeds of any and
all of the foregoing, including, without limitation, cash. The Indenture Trustee
shall possess all right, title and interest in all funds on deposit from time to
time in the Series 2003-2 Reserve Account and in all proceeds thereof and shall
be the only person authorized to originate entitlement orders in respect of the
Series 2003-2 Reserve Account. The Indenture Trustee and the Series 2003-2
Investor Noteholders shall have no interest in any amounts withdrawn from the
Series 2003-2 Reserve Account and deposited in the Series 2003-2 Preferred
Member Distribution Account.

          (g) On the first Payment Date after the Series 2003-2 Note Termination
Date on which the sum of (a) the Series 2003-2 Reserve Account Amount, (b) the
Series 2003-2 Yield Supplement Account Amount and (c) the amount available to be
deposited in the Series 2003-2 Preferred Member Distribution Account in
accordance with Section 5A.4(c)(ix) is at least equal to the aggregate stated
liquidation preference of the Series 2003-2 Preferred Membership Interests and
on any Payment Date thereafter, the Indenture Trustee, acting in accordance with
the written instructions of the Administrator shall withdraw from the Series
2003-2 Reserve Account all amounts on deposit therein for deposit in the Series
2003-2 Preferred Member Distribution Account.

          Section 5A.9 Series 2003-2 Yield Supplement Account.

          (a) The Indenture Trustee shall establish and maintain in the name of
the Indenture Trustee for the benefit of the Series 2003-2 Investor Noteholders
an account (the "Series 2003-2 Yield Supplement Account"), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Series 2003-2 Investor Noteholders. The Series 2003-2 Yield Supplement
Account shall be an Eligible Deposit Account; provided that, if at any time such
account is not an Eligible Deposit Account, then the Indenture Trustee shall,
within 30 days of obtaining knowledge of such reduction, establish a new Series
2003-2 Yield Supplement Account that is an Eligible Deposit Account. If the
Indenture Trustee establishes a new Series 2003-2 Yield Supplement Account, it
shall transfer all cash and investments from the non-qualifying Series 2003-2
Yield Supplement Account into the new Series 2003-2 Yield Supplement Account.
Initially, the Series 2003-2 Yield Supplement Account will be established with
JPMorgan Chase Bank.

<PAGE>
                                                                              28

          (b) The Issuer may instruct the institution maintaining the Series
2003-2 Yield Supplement Account in writing to invest funds on deposit in the
Series 2003-2 Yield Supplement Account from time to time in Permitted
Investments selected by the Issuer (by standing instructions or otherwise);
provided, however, that any such investment shall mature not later than the
Business Day prior to the Payment Date following the date on which such funds
were received. All such Permitted Investments will be credited to the Series
2003-2 Yield Supplement Account and any such Permitted Investments that
constitute (i) Physical Property (and that is not either a United States
Security Entitlement or a Security Entitlement) shall be delivered to the
Indenture Trustee in accordance with paragraph (a) of the definition of
"Delivery" and shall be held by the Indenture Trustee pending maturity or
disposition; (ii) United States Security Entitlements or Security Entitlements
shall be Controlled by the Indenture Trustee pending maturity or disposition;
and (iii) Uncertificated Securities (and not United States Security
Entitlements) shall be delivered to the Indenture Trustee in accordance with
paragraph (b) of the definition of "Delivery" and shall be maintained by the
Indenture Trustee pending maturity or disposition. The Indenture Trustee shall,
at the direction and expense of the Administrator, take such additional action
as is required to maintain the Indenture Trustee's security interest in the
Permitted Investments credited to the Series 2003-2 Yield Supplement Account. In
absence of written direction as provided hereunder, funds on deposit in the
Series 2003-2 Yield Supplement Account shall remain uninvested.

          (c) All interest and earnings (net of losses and investment expenses)
paid on funds on deposit in the Series 2003-2 Yield Supplement Account shall be
deemed to be on deposit and available for distribution.

          (d) If there is a Series 2003-2 Yield Supplement Account Surplus on
any Settlement Date, the Administrator may notify the Indenture Trustee thereof
in writing and request the Indenture Trustee to withdraw from the Series 2003-2
Yield Supplement Account and deposit in the Series 2003-2 Preferred Member
Distribution Account, and the Indenture Trustee shall withdraw from the Series
2003-2 Yield Supplement Account and deposit in the Series 2003-2 Preferred
Member Distribution Account an amount up to the lesser of (i) such Series 2003-2
Yield Supplement Account Surplus on such Business Day and (ii) the Series 2003-2
Yield Supplement Account Amount on such Business Day.

          (e) Amounts will be withdrawn from the Series 2003-2 Yield Supplement
Account in accordance with Section 5A.4(b).

          (f) In order to secure and provide for the repayment and payment of
the Issuer Obligations with respect to the Series 2003-2 Investor Notes, the
Issuer hereby grants a security interest in and assigns, pledges, grants,
transfers and sets over to the Indenture Trustee, for the benefit of the Series
2003-2 Investor Noteholders, all of the Issuer's right, title and interest in
and to the following (whether now or hereafter existing or acquired): (i) the
Series 2003-2 Yield Supplement Account, including any security entitlement
thereto; (ii) all funds on deposit therein from time to time; (iii) all
certificates and instruments, if any, representing or evidencing any or all of
the Series 2003-2 Yield Supplement Account or the funds on deposit therein from
time to time; (iv) all investments made at any time and from time to time with
monies in the Series 2003-2 Yield Supplement Account, whether constituting
securities, instruments, general intangibles, investment property, financial
assets or other property; (v) all interest, dividends,

<PAGE>
                                                                              29

cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for the Series 2003-2 Yield
Supplement Account, the funds on deposit therein from time to time or the
investments made with such funds; and (vi) all proceeds of any and all of the
foregoing, including, without limitation, cash. The Indenture Trustee shall
possess all right, title and interest in all funds on deposit from time to time
in the Series 2003-2 Yield Supplement Account and in all proceeds thereof and
shall be the only person authorized to originate entitlement orders in respect
of the Series 2003-2 Yield Supplement Account. The Indenture Trustee and the
Series 2003-2 Investor Noteholders shall have no interest in any amounts
withdrawn from the Series 2003-2 Yield Supplement Account and deposited in the
Series 2003-2 Preferred Member Distribution Account.

          (g) On the first Payment Date after the Series 2003-2 Note Termination
Date on which the sum of (a) the Series 2003-2 Reserve Account Amount, (b) the
Series 2003-2 Yield Supplement Account Amount and (c) the amount available to be
deposited in the Series 2003-2 Preferred Member Distribution Account in
accordance with Section 5A.4(c)(ix) is at least equal to the aggregate stated
liquidation preference of the Series 2003-2 Preferred Membership Interests and
on any Payment Date thereafter, the Indenture Trustee, acting in accordance with
the written instructions of the Administrator shall withdraw from the Series
2003-2 Yield Supplement Account all amounts on deposit therein for deposit in
the Series 2003-2 Preferred Member Distribution Account.

          Section 5A.10 Series 2003-2 Distribution Account.

          (a) The Indenture Trustee shall establish and maintain in the name of
the Indenture Trustee for the benefit of the Series 2003-2 Investor Noteholders
an account (the "Series 2003-2 Distribution Account"), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Series 2003-2 Investor Noteholders. The Series 2003-2 Distribution Account
shall be an Eligible Deposit Account; provided that, if at any time such account
is not an Eligible Deposit Account, then the Indenture Trustee shall, within 30
days of obtaining knowledge of such reduction, establish a new Series 2003-2
Distribution Account that is an Eligible Deposit Account. If the Indenture
Trustee establishes a new Series 2003-2 Distribution Account, it shall transfer
all cash and investments from the non-qualifying Series 2003-2 Distribution
Account into the new Series 2003-2 Distribution Account. Initially, the Series
2003-2 Distribution Account will be established with JPMorgan Chase Bank.

          (b) In order to secure and provide for the repayment and payment of
the Issuer Obligations with respect to the Series 2003-2 Investor Notes, the
Issuer hereby grants a security interest in and assigns, pledges, grants,
transfers and sets over to the Indenture Trustee, for the benefit of the Series
2003-2 Investor Noteholders, all of the Issuer's right, title and interest in
and to the following (whether now or hereafter existing or acquired): (i) the
Series 2003-2 Distribution Account, including any security entitlement thereto;
(ii) all funds on deposit therein from time to time; (iii) all certificates and
instruments, if any, representing or evidencing any or all of the Series 2003-2
Distribution Account or the funds on deposit therein from time to time; (iv) all
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
the Series 2003-2 Distribution Account or the funds on deposit therein from time
to time; and (v) all proceeds of any and all of the foregoing, including,
without limitation, cash. The Indenture Trustee shall possess all right, title

<PAGE>
                                                                              30

and interest in all funds on deposit from time to time in the Series 2003-2
Distribution Account and in all proceeds thereof and shall be the only person
authorized to originate entitlement orders in respect of the Series 2003-2
Distribution Account.

          Section 5A.11 Lease Rate Caps.

          (a) The Issuer shall have obtained on the Series 2003-2 Closing Date
and shall thereafter maintain one or more interest rate caps, each from a Series
2003-2 Eligible Counterparty, having, in the aggregate, a notional amount on the
Series 2003-2 Closing Date at least equal to the aggregate Lease Balance of all
Fixed Rate Leases allocated to the Lease SUBI Portfolio as of the Series 2003-2
Closing Date, plus, in the case of all such Fixed Rate Leases that are
Closed-End Leases, the aggregate Stated Residual Values of the related Leased
Vehicles and on each Payment Date thereafter at least equal to the aggregate
scheduled Lease Balance of all such Fixed Rate Leases as of the last day of the
Monthly Period immediately preceding such Payment Date, plus, in the case of all
such Fixed Rate Leases that are Closed-End Leases, the aggregate Stated Residual
Values of the related Leased Vehicles, and an effective strike rate based on the
eurodollar rate set forth therein in effect on the dates set forth therein at
the most equal to the weighted average fixed rate of interest on such Fixed Rate
Leases minus 0.705% per annum.

          (b) On or prior to the date that any Fixed Rate Lease is allocated to
the Lease SUBI Portfolio on or after the Series 2003-2 Closing Date, the Issuer
shall have obtained and shall thereafter maintain an interest rate cap from a
Series 2003-2 Eligible Counterparty having a notional amount equal to the
initial Lease Balance of such Fixed Rate Lease, plus, in the case of a
Closed-End Lease, the Stated Residual Value of the related Leased Vehicle and on
each Payment Date thereafter at least equal to the scheduled Lease Balance of
such Fixed Rate Lease as of the last day of the Monthly Period immediately
preceding such Payment Date, plus, in the case of a Closed-End Lease, the Stated
Residual Value of the related Leased Vehicle and an effective strike rate based
on the eurodollar rate set forth therein in effect on the dates set forth
therein at the most equal to the fixed rate of interest on such Fixed Rate Lease
minus 0.705% per annum.

          (c) The Issuer may obtain an interest rate cap from a Series 2003-2
Eligible Counterparty in respect of any Fixed Rate Lease allocated to the Lease
SUBI Portfolio that was not a Fixed Rate Lease when initially allocated to the
Lease SUBI Portfolio or on the Series 2003-2 Closing Date having a notional
amount equal to the Lease Balance of such Fixed Rate Lease as of the last day of
the Monthly Period immediately preceding the date as of which such Lease became
a Fixed Rate Lease, plus, in the case of a Closed-End Lease, the Stated Residual
Value of the related Leased Vehicle and on each Payment Date thereafter at least
equal to the scheduled Lease Balance of such Fixed Rate Lease as of the last day
of the Monthly Period immediately preceding such Payment Date, plus, in the case
of a Closed-End Lease, the Stated Residual Value of the related Leased Vehicle
and an effective strike rate based on the eurodollar rate set forth therein in
effect on the dates set forth therein at the most equal to the fixed rate of
interest on such Fixed Rate Lease minus 0.705% per annum. If the Issuer obtains
an interest rate cap in respect of any Fixed Rate Lease satisfying the
requirements of this Section 5A.11(c), it shall maintain such interest rate cap.

<PAGE>
                                                                              31

          (d) The Issuer shall have obtained on the Series 2003-2 Closing Date
and shall thereafter maintain the Series 2003-2 Required Lease Rate Cap.

          (e) If the short-term credit rating of any provider of an interest
rate cap required to be obtained and maintained by the Issuer pursuant to this
Section 5A.11 falls below A-1 by Standard & Poor's or P-1 by Moody's or the
long-term unsecured credit rating of any such provider falls below A+ by
Standard & Poor's or Aa3 by Moody's, the Issuer shall obtain an equivalent
interest rate cap from a Series 2003-2 Eligible Counterparty within 30 days of
such decline in credit rating unless such provider provides some form of
collateral for its obligations under its interest rate cap and the Rating Agency
Condition is satisfied with respect to such arrangement. The Issuer will not
permit any interest rate cap required to be obtained and maintained by the
Issuer pursuant to this Section 5A.11 to be terminated or transferred in whole
or in part unless a replacement interest rate cap therefor has been provided as
described in the immediately preceding sentence and, after giving effect
thereto, the Issuer has the interest rate caps required to be obtained and
maintained by the Issuer pursuant to this Section 5A.11.

          (f) In order to secure and provide for the repayment and payment of
the Issuer Obligations with respect to the Series 2003-2 Investor Notes, the
Issuer hereby grants a security interest in and assigns, pledges, grants,
transfers and sets over to the Indenture Trustee, for the benefit of the Series
2003-2 Investor Noteholders, all of the Issuer's right, title and interest in
and to the Series 2003-2 Lease Rate Cap and any and all payments thereunder and
any and all proceeds thereof (including as a result of the termination thereof).

                                  ARTICLE III

                               AMORTIZATION EVENTS

          If any one of the following events shall occur with respect to the
Series 2003-2 Investor Notes:

          (a) the Series 2003-2 Reserve Account shall have become subject to an
injunction, estoppel or other stay or a Lien (other than a Permitted Lien);

          (b) the Series 2003-2 Yield Supplement Account shall have become
subject to an injunction, estoppel or other stay or a Lien (other than a
Permitted Lien);

          (c) a Series 2003-2 Liquid Credit Enhancement Deficiency shall occur
and continue for at least two Business Days;

          (d) a Series 2003-2 Allocated Asset Amount Deficiency shall occur and
continue for at least two Business Days;

          (e) a Series 2003-2 Yield Supplement Deficiency shall occur and
continue for at least two Business Days;

          (f) the Three Month Average Charge-Off Ratio with respect to any
Settlement Date exceeds 1.00%;

<PAGE>
                                                                              32

          (g) the Three Month Average Paid-In Advance Loss Ratio with respect to
any Settlement Date exceeds 1.50%;

          (h) the Three Month Average Delinquency Ratio with respect to any
Settlement Date exceeds 7.00%;

          (i) the failure on the part of the Issuer to declare and pay dividends
on the Series 2003-2 Senior Preferred Membership Interests or the Series 2003-2
Junior Preferred Membership Interests on any Payment Date in accordance with
their terms;

          (j) any Servicer Termination Event shall occur;

          (k) any Termination Event shall occur;

          (l) an Event of Default with respect to the Series 2003-2 Investor
Notes shall occur;

          (m) there is at least $10,000,000 on deposit in the Series 2003-2
Principal Collection Subaccount on two consecutive Settlement Dates during the
Series 2003-2 Revolving Period;

          (n) an Insolvency Event shall occur with respect to SPV, the
Origination Trust, Avis, PHH, Cendant or VMS;

          (o) all principal and interest of the Class A-1 Investor Notes is not
paid in full on or before the Class A-1 Maturity Date or all principal and
interest of the Class A-2 Investor Notes is not paid in full on or before the
Class A-2 Maturity Date;

          (p) failure on the part of the Issuer (i) to make any payment or
deposit required by the terms of the Indenture (or within the applicable grace
period which shall not exceed two Business Days after the date such payment or
deposit is required to be made) or (ii) duly to observe or perform in any
material respect any covenants or agreements of the Issuer set forth in the Base
Indenture or this Indenture Supplement, which failure continues unremedied for a
period of 45 days after there shall have been given to the Issuer by the
Indenture Trustee or the Issuer and the Indenture Trustee by the Series 2003-2
Required Investor Noteholders, written notice specifying such default and
requiring it to be remedied;

          (q) any representation or warranty made by the Issuer in the Base
Indenture or this Indenture Supplement, or any information required to be
delivered by the Issuer to the Indenture Trustee shall prove to have been
incorrect in any material respect when made or when delivered, which continues
to be incorrect in any material respect for a period of 45 days after there
shall have been given to the Issuer by the Indenture Trustee or the Issuer and
the Indenture Trustee by the Series 2003-2 Required Investor Noteholders,
written notice thereof;

          (r) the Indenture Trustee shall for any reason cease to have a valid
and perfected first priority security interest in the Collateral or any of VMS,
the Issuer or any Affiliate of either thereof shall so assert;

<PAGE>
                                                                              33

          (s) there shall have been filed against Cendant, PHH, VMS, the
Origination Trust, SPV or the Issuer (i) a notice of federal tax Lien from the
Internal Revenue Service, (ii) a notice of Lien from the PBGC under Section
412(n) of the Internal Revenue Code or Section 302(f) of ERISA for a failure to
make a required installment or other payment to a plan to which either of such
sections applies or (iii) a notice of any other Lien the existence of which
could reasonably be expected to have a material adverse effect on the business,
operations or financial condition of such Person, and, in each case, 40 days
shall have elapsed without such notice having been effectively withdrawn or such
Lien having been released or discharged;

          (t) one or more judgments or decrees shall be entered against the
Issuer involving in the aggregate a liability (not paid or fully covered by
insurance) of $100,000 or more and such judgments or decrees shall not have been
vacated, discharged, stayed or bonded pending appeal within 30 days from the
entry thereof; or

          (u) any of the Transaction Documents shall cease, for any reason, to
be in full force and effect, other than in accordance with its terms;

then, in the case of any event described in clause (p) through (u) above, an
Amortization Event will be deemed to have occurred with respect to the Series
2003-2 Investor Notes only, if after the applicable grace period, either the
Indenture Trustee or Series 2003-2 Investor Noteholders holding a Majority in
Interest of the Series 2003-2 Investor Notes, declare that an Amortization Event
has occurred with respect to the Series 2003-2 Investor Notes. In the case of
any event described in clauses (a) through (o) above, an Amortization Event with
respect to the Series 2003-2 Investor Notes will be deemed to have occurred
without notice or other action on the part of the Indenture Trustee or the
Series 2003-2 Investor Noteholders.

                                   ARTICLE IV

                               OPTIONAL PREPAYMENT

          The Issuer shall have the option to prepay the Series 2003-2 Investor
Notes in full on any Payment Date after the Payment Date in June 2005. The
Issuer shall give the Indenture Trustee at least ten Business Days' prior
written notice of the Payment Date on which the Issuer intends to exercise such
option to prepay (the "Prepayment Date"). The prepayment price for the Series
2003-2 Investor Notes shall equal the aggregate outstanding principal balance of
the Series 2003-2 Investor Notes (determined after giving effect to any payments
of principal and interest on such Payment Date), plus accrued and unpaid
interest on such outstanding principal balance. Not later than 11:00 a.m., New
York City time, on such Prepayment Date, the Issuer shall deposit in the Series
2003-2 Distribution Account an amount equal to the prepayment price in
immediately available funds. The funds deposited into the Series 2003-2
Distribution Account will be paid by the Indenture Trustee to the Series 2003-2
Investor Noteholders on such Prepayment Date.

<PAGE>
                                                                              34

                                   ARTICLE V

                        SERVICING AND ADMINISTRATOR FEES

          Section 5.1 Servicing Fees. A periodic servicing fee (the "Series
2003-2 Basic Servicing Fee") shall be payable to the Servicer on each Payment
Date for the Series 2003-2 Interest Period ending on such Payment Date in an
amount equal to the product of (a) 0.215% (the "Series Servicing Fee
Percentage") times (b) the Series 2003-2 Allocated Adjusted Aggregate Unit
Balance as of the first day of such Series 2003-2 Interest Period times (c) the
number of days in such Series 2003-2 Interest Period divided by 365 (or 366, as
applicable) days; provided, however that if VMS is not the Servicer, the
servicing fee payable to the Servicer on each Payment Date hereunder may be
increased such that the sum of the Series 2003-2 Basic Servicing Fee and the
additional servicing fee payable to the Servicer hereunder (the "Series 2003-2
Supplemental Servicing Fee") for each Series 2003-2 Interest Period equals 110%
of the costs to the successor Servicer of servicing the portion of the Lease
SUBI Portfolio allocated to Series 2003-2 during such Series 2003-2 Interest
Period. For this purpose, the portion of the Lease SUBI Portfolio allocated to
Series 2003-2 for each Series 2003-2 Interest Period shall equal the average
Series 2003-2 Invested Percentage during such Series 2003-2 Interest Period. The
Series 2003-2 Basic Servicing Fee and any Series 2003-2 Supplemental Servicing
Fee shall be payable to the Servicer on each Payment Date pursuant to Section
5A.4(c).

          Section 5.2 Administrator Fee. A periodic fee (the "Series 2003-2
Administrator Fee") shall be payable to the Administrator on each Payment Date
for the Series 2003-2 Interest Period ending on such Payment Date in an amount
equal to the product of (a) 0.01% times (b) the Series 2003-2 Allocated Adjusted
Aggregate Unit Balance as of the first day of the immediately preceding Monthly
Period times (c) the number of days in such Series 2003-2 Interest Period
divided by 365 (or 366, as applicable) days. The Series 2003-2 Administrator Fee
shall be payable to the Administrator on each Payment Date pursuant to Section
5A.4(c)(vii).

                                   ARTICLE VI

                           FORM OF SERIES 2003-2 NOTES

          Section 6.1 Initial Issuance of Series 2003-2 Investor Notes.

          The Series 2003-2 Investor Notes are being offered and sold by the
Issuer in a registered public offering pursuant to an Underwriting Agreement,
dated November [__], 2003, among the Issuer, VMS, PHH and J.P. Morgan Securities
Inc. and Banc of America Securities LLC, as the representatives of the
underwriters.

          Section 6.2 Global Notes.

          The Series 2003-2 Investor Notes of each Class will be issued in the
form of one or more Global Notes in fully registered form, without coupons,
substantially in the form set forth in Exhibits A-1 and A-2, registered in the
name of Cede & Co., as nominee of DTC, and deposited with JPMorgan Chase, as
custodian of DTC (collectively, the "Series 2003-2 Global Notes").

<PAGE>
                                                                              35

          The Series 2003-2 Global Notes shall bear the following legends:

          THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
     HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY
     TRUST COMPANY ("DTC"), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK,
     NEW YORK 10004, OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN
     WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN
     WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN
     DTC OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
     THE INDENTURE.

          UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
     TO THE ISSUER OR THE TRANSFER AGENT AND REGISTRAR, AND ANY NOTE ISSUED IS
     REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
     BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE &
     CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
     OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
     OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS
     AN INTEREST HEREIN.

          Section 6.3 Definitive Notes.

          No Series 2003-2 Note Owner will receive a Definitive Note
representing such Series 2003-2 Note Owner's interest in the Series 2003-2
Investor Notes other than in accordance with Section 2.11 of the Base Indenture.

                                  ARTICLE VII

                                   INFORMATION

          The Issuer hereby agrees to provide to the Indenture Trustee and each
provider of the Series 2003-2 Required Lease Rate Cap, on each Determination
Date, a Monthly Settlement Statement, substantially in the form of Exhibit B,
setting forth as of the last day of the most recent Monthly Period and for such
Monthly Period the information set forth therein. The Indenture Trustee shall
provide to the Series 2003-2 Investor Noteholders, or their designated agent,
copies of each Monthly Settlement Statement.

<PAGE>
                                                                              36
                                  ARTICLE VIII

                                  MISCELLANEOUS

          Section 8.1 Ratification of Indenture. As supplemented by this
Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so

supplemented by this Indenture Supplement shall be read, taken and construed as
one and the same instrument.

          Section 8.2 Obligations Unaffected. The obligations of the Issuer to
the Series 2003-2 Investor Noteholders under this Indenture Supplement shall not
be affected by reason of any invalidity, illegality or irregularity of any of
the SUBI Certificates, the Sold Units or the Fleet Receivables.

          Section 8.3 Governing Law. THIS INDENTURE SUPPLEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

          Section 8.4 Further Assurances. Each of the Issuer and the Indenture
Trustee agrees, at the Administrator's expense, from time to time, to do and
perform any and all acts and to execute any and all further instruments required
or reasonably requested by the Series 2003-2 Required Investor Noteholders more
fully to effect the purposes of this Indenture Supplement and the sale of the
Series 2003-2 Investor Notes hereunder. The Issuer hereby authorizes the
Indenture Trustee to file any financing statements or similar documents or
notices or continuation statements relating to the Series 2003-2 Collateral
under the provisions of the UCC or similar legislation of any applicable
jurisdiction.

          Section 8.5 Exhibits. The following exhibits attached hereto
supplement the exhibits included in the Base Indenture:

          Exhibit A-1:      Form of Class A-1 Note
          Exhibit A-2:      Form of Class A-2 Note
          Exhibit B:        Form of Monthly Settlement Statement
          Exhibit C:        Form of Series 2003-2 Lease Rate Cap

          Section 8.6 No Waiver; Cumulative Remedies. No failure to exercise and
no delay in exercising, on the part of the Indenture Trustee, any right, remedy,
power or privilege hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided are cumulative and not exhaustive of any rights, remedies,
powers and privileges provided by law.

          Section 8.7 Amendments. (a) This Indenture Supplement may be amended
in writing from time to time in accordance with the terms of the Base Indenture.

          (b) No amendment specified in this Indenture Supplement as requiring
satisfaction of the Rating Agency Condition shall be effective until the Rating
Agency Condition is satisfied with respect thereto.

<PAGE>
                                                                              37

          (c) The Issuer reserves the right, without any consent or other action
of the Series 2003-2 Investor Noteholders, to consent to the termination of the
ARAC Guaranty.

          Section 8.8 Severability. If any provision hereof is void or
unenforceable in any jurisdiction, such voidness or unenforceability shall not
affect the validity or enforceability of (i) such provision in any other
jurisdiction or (ii) any other provision hereof in such or any other
jurisdiction.

          Section 8.9 Counterparts. This Indenture Supplement may be executed in
any number of counterparts 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 taken together shall constitute one and the same agreement.

          Section 8.10 No Bankruptcy Petition. (a) By acquiring a Series 2003-2
Investor Note or an interest therein, each Series 2003-2 Investor Noteholder and
each Series 2003-2 Investor Note Owner hereby covenants and agrees that it will
not institute against, or join any other Person in instituting against, the
Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other similar proceedings under any federal or state bankruptcy
or similar law.

          (a) By acquiring a Series 2003-2 Investor Note or an interest therein,
each Series 2003-2 Investor Noteholder and each Series 2003-2 Investor Note
Owner and the Issuer and the Indenture Trustee hereby covenants and agrees that,
prior to the date which is one year and one day after payment in full of all
obligations under each Securitization, it will not institute against, or join
any other Person in instituting against, the Origination Trust, SPV, any other
Special Purpose Entity, or any general partner or single member of any Special
Purpose Entity that is a partnership or limited liability company, respectively,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding or other proceedings under any federal or state bankruptcy or similar
law.

          Section 8.11 SUBIs. By acquiring a Series 2003-2 Investor Note or an
interest therein, each Series 2003-2 Investor Noteholder and each Series 2003-2
Investor Note Owner and the Issuer hereby represents, warrants and covenants
that (a) each of the Lease SUBI and the Fleet Receivable SUBI is a separate
series of the Origination Trust as provided in Section 3806(b)(2) of Chapter 38
of Title 12 of the Delaware Code, 12 Del.C. Section 3801 et seq., (b)(i) the
debts, liabilities, obligations and expenses incurred, contracted for or
otherwise existing with respect to the Lease SUBI, the Lease SUBI Portfolio or
the Fleet Receivable SUBI shall be enforceable against the Lease SUBI Portfolio
or the Fleet Receivable SUBI only, as applicable, and not against any other SUBI
Portfolio or the UTI Portfolio and (ii) the debts, liabilities, obligations and
expenses incurred, contracted for or otherwise existing with respect to any
other SUBI (used in this Section as defined in the Origination Trust Agreement),
any other SUBI Portfolio (used in this Section as defined in the Origination
Trust Agreement), the UTI or the UTI Portfolio shall be enforceable against such
other SUBI Portfolio or the UTI Portfolio only, as applicable, and not against
any other SUBI Assets, (c) except to the extent required by law, UTI Assets or
SUBI Assets with respect to any SUBI (other than the Lease SUBI and the Fleet
Receivable SUBI) shall not be subject to the claims, debts, liabilities,
expenses or obligations arising from or with respect to the Lease SUBI or Fleet
Receivable SUBI, respectively, in respect

<PAGE>
                                                                              38

of such claim, (d)(i) no creditor or holder of a claim relating to the Lease
SUBI, the Fleet Receivable SUBI or the Lease Receivable SUBI Portfolio shall be
entitled to maintain any action against or recover any assets allocated to the
UTI or the UTI Portfolio or any other SUBI or the assets allocated thereto, and
(ii) no creditor or holder of a claim relating to the UTI, the UTI Portfolio or
any SUBI other than the Lease SUBI or the Fleet Receivable SUBI or any SUBI
Assets other than the Lease SUBI Portfolio or the Fleet Receivables shall be
entitled to maintain any action against or recover any assets allocated to the
Lease SUBI or the Fleet Receivable SUBI, and (e) any purchaser, assignee or
pledgee of an interest in the Lease SUBI, the Lease SUBI Certificate, the Fleet
Receivable SUBI, the Lease SUBI Certificate, the Fleet Receivable SUBI
Certificate, any other SUBI, any other SUBI Certificate (used in this Section as
defined in the Origination Trust Agreement), the UTI or the UTI Certificate
must, prior to or contemporaneously with the grant of any such assignment,
pledge or security interest, (i) give to the Origination Trust a non-petition
covenant substantially similar to that set forth in Section 6.9 of the
Origination Trust Agreement, and (ii) execute an agreement for the benefit of
each holder, assignee or pledgee from time to time of the UTI or UTI Certificate
and any other SUBI or SUBI Certificate to release all claims to the assets of
the Origination Trust allocated to the UTI and each other SUBI Portfolio and in
the event that such release is not given effect, to fully subordinate all claims
it may be deemed to have against the assets of the Origination Trust allocated
to the UTI Portfolio and each other SUBI Portfolio.

          Section 8.12 Notice to Rating Agencies. The Indenture Trustee shall
provide to each Rating Agency a copy of each notice delivered to, or required to
be provided by, the Indenture Trustee pursuant to this Indenture Supplement or
any other Transaction Document.

          Section 8.13 Conflict of Instructions. In the event the Issuer and the
Administrator shall have delivered conflicting instructions to the Indenture
Trustee to take or refrain from taking action hereunder, the Indenture Trustee
shall follow the instructions of the Issuer.

<PAGE>
                                                                              39

          IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture Supplement to be duly executed by their respective officers
hereunto duly authorized as of the day and year first above written.

                                        CHESAPEAKE FUNDING LLC

                                        By:______________________________
                                           Name:
                                           Title:

                                        JPMORGAN CHASE BANK,
                                           as Indenture Trustee

                                        By:______________________________
                                           Name:
                                           Title:

<PAGE>

                                                                     EXHIBIT A-1
                                                                TO SERIES 2003-2
                                                            INDENTURE SUPPLEMENT

                     FORM OF GLOBAL CLASS A-1 INVESTOR NOTE

REGISTERED                                                $230,000,000 No. R-001

                       SEE REVERSE FOR CERTAIN CONDITIONS

                                                   CUSIP (CINS) NO. 165182[____]
                                                        ISIN NO. US165182[_____]

          THIS  NOTE IS A  GLOBAL  NOTE  WITHIN  THE  MEANING  OF THE  INDENTURE
HEREINAFTER  REFERRED TO AND IS REGISTERED IN THE NAME OF THE  DEPOSITORY  TRUST
COMPANY ("DTC"),  A NEW YORK  CORPORATION,  55 WATER STREET,  NEW YORK, NEW YORK
10004, OR A NOMINEE THEREOF.  THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART
FOR A SECURITY REGISTERED,  AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY
BE  REGISTERED,  IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE  THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

          UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF DTC
TO THE  ISSUER OR THE  TRANSFER  AGENT  AND  REGISTRAR,  AND ANY NOTE  ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED  REPRESENTATIVE  OF DTC,  AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC, ANY
TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS AN INTEREST HEREIN.

          THE   PRINCIPAL  OF  THIS  CLASS  A-1  INVESTOR  NOTE  IS  PAYABLE  IN
INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY,  THE OUTSTANDING PRINCIPAL AMOUNT
OF THIS CLASS A-1 INVESTOR NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON
THE FACE HEREOF.

                             CHESAPEAKE FUNDING LLC

        SERIES 2003-2 FLOATING RATE CALLABLE ASSET BACKED INVESTOR NOTES,
                                   CLASS A-1

                                      A-1

<PAGE>

          CHESAPEAKE  FUNDING LLC, a limited  liability company formed under the
laws of the State of Delaware  (herein  referred to as the "Issuer"),  for value
received,  hereby  promises to pay to Cede & Co.,  or  registered  assigns,  the
principal  sum of Two Hundred  Thirty  Million  Dollars,  which  amount shall be
payable in the  amounts  and at the times set forth in the  Indenture  described
herein, provided, however, that the entire unpaid principal amount of this Class
A-1 Investor Note shall be due on the Class A-1 Final  Maturity  Date.  However,
principal with respect to the Class A-1 Investor Notes may be paid earlier under
certain limited  circumstances  described in the Indenture.  The Issuer will pay
interest on this Class A-1 Investor Note for each Series 2003-2 Interest Period,
in accordance  with the terms of the  Indenture,  at the Class A-1 Note Rate for
such Interest  Period.  Each "Series  2003-2  Interest  Period" will be a period
commencing  on and  including a Payment Date and ending on and including the day
preceding the next succeeding Payment Date; provided,  however, that the initial
Series 2003-2  Interest  Period shall  commence on and include the Series 2003-2
Closing  Date and end on and include  December 7, 2003.  Such  principal  of and
interest on this Class A-1 Investor  Note shall be paid in the manner  specified
on the reverse hereof and in the Indenture.

          The  principal  of and  interest on this Class A-1  Investor  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. All payments
made by the Issuer with respect to this Class A-1 Investor Note shall be applied
as provided in the Indenture. This Class A-1 Investor Note does not represent an
interest in, or an obligation of, PHH Vehicle Management  Services,  LLC ("VMS")
or any affiliate of VMS other than the Issuer.

          Reference is made to the further provisions of this Class A-1 Investor
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 Investor Note.  Although a summary
of certain  provisions  of the  Indenture  is set forth below and on the reverse
hereof and made a part hereof,  this Class A-1 Investor 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 Issuer and
the  Indenture  Trustee.  A copy of the  Indenture  may be  requested  from  the
Indenture Trustee by writing to the Indenture Trustee at: JPMorgan Chase Bank, 4
New York Plaza, 6th Floor, New York, New York, 10004,  Attention:  Institutional
Trust  Services.  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 Indenture Trustee whose name appears below by manual  signature,  this Class
A-1  Investor  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.

                                      A-2

<PAGE>

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer.

Date:  __________

                                       CHESAPEAKE FUNDING LLC

                                       By:___________________________
                                            Name:
                                            Title:

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Class A-1 Investor Notes issued under the
within-mentioned Indenture.

                                      JPMORGAN CHASE BANK, as Indenture Trustee

                                      By:___________________________
                                           Authorized Signatory

                                      A-3

<PAGE>

                      [REVERSE OF CLASS A-1 INVESTOR NOTE]

          This  Class A-1  Investor  Note is one of a duly  authorized  issue of
Class A-1 Investor  Notes of the Issuer  designated  its Series 2003-2  Floating
Rate Asset Backed Investor Notes (herein called the "Class A-1 Investor Notes"),
all  issued  under (i) a Base  Indenture  dated as of June 30,  1999  (such Base
Indenture,  as  amended or  modified,  is herein  called the "Base  Indenture"),
between  the  Issuer  and  JPMorgan  Chase  Bank  (formerly  known as The  Chase
Manhattan  Bank),  as Indenture  Trustee (the  "Indenture  Trustee",  which term
includes any successor  Indenture Trustee under the Base Indenture),  and (ii) a
Series 2003-2 Indenture  Supplement dated as of [__________],  2003 (the "Series
2003-2 Indenture  Supplement") between the Issuer and the Indenture Trustee. The
Base  Indenture and the Series 2003-2  Supplement  are referred to herein as the
"Indenture".  The  Class A-1  Investor  Notes  are  subject  to all terms of the
Indenture.  All terms used in this Class A-1  Investor  Note that are defined in
the Indenture,  as  supplemented,  modified or amended,  shall have the meanings
assigned to them in or pursuant to the Indenture,  as so supplemented,  modified
or amended.

          The  Class A-1  Investor  Notes are and will be  equally  and  ratably
secured by the Series 2003-2 Collateral pledged as security therefor as provided
in the Indenture and the Series 2003-2 Indenture Supplement.

          Principal  of the Class A-1  Investor  Notes  will be  payable on each
Payment  Date  specified  in and  in the  amounts  described  in the  Indenture.
"Payment  Date"  means  the  7th  day of each  month,  or if such  date is not a
Business Day, the next succeeding Business Day, commencing December 8, 2003.

          The entire  unpaid  principal  amount of this Class A-1 Investor  Note
shall be due and payable on the Class A-1 Final Maturity  Date.  Notwithstanding
the  foregoing,  principal on the Class A-1 Investor  Notes will be paid earlier
during the Series 2003-2 Amortization Period as described in the Indenture.  All
principal payments on the Class A-1 Investor Notes shall be made pro rata to the
Class A-1 Investor Noteholders entitled thereto.

          The Issuer will have the option to prepay the Series  2003-2  Investor
Notes,  in whole but not in part,  on any Payment Date after the Payment Date in
June 2005.  The  prepayment  price for the Series 2003-2  Investor Notes will be
equal to the amount set forth in the Indenture.

          Interest will accrue on this Class A-1 Investor  Notes for each Series
2003-2 Interest Period at a rate equal to (i) with respect to the initial Series
2003-2  Interest  Period,  [___]% per annum and (ii) with respect to each Series
2003-2 Interest Period thereafter, a rate per annum equal to One-Month LIBOR for
such Series  2003-2  Interest  Period plus [___]% per annum (the "Class A-1 Note
Rate").  "One-Month  LIBOR" means, for each Series 2003-2 Interest  Period,  the
rate  per  annum  determined  on the  related  LIBOR  Determination  Date by the
Calculation  Agent to be the rate for Dollar deposits having a maturity equal to
one month that appears on Telerate Page 3750 at approximately 11:00 a.m., London
time, on such LIBOR Determination  Date;  provided,  however,  that if such rate
does not appear on  Telerate  Page  3750,  One-Month  LIBOR will mean,  for such
2003-2 Interest Period, the rate per annum equal to the arithmetic mean (rounded
to the nearest one-one-hundred-thousandth of one percent) of the rates

                                      A-4

<PAGE>

quoted by the  Reference  Banks to the  Calculation  Agent as the rates at which
deposits in Dollars are offered by the Reference  Banks at  approximately  11:00
a.m., London time, on the LIBOR  Determination Date to prime banks in the London
interbank  market for a period equal to one month;  provided,  further,  that if
fewer than two  quotations  are provided as requested  by the  Reference  Banks,
"One-Month  LIBOR"  for  such  Series  2003-2  Interest  Period  will  mean  the
arithmetic  mean  (rounded  to  the  nearest  one-one-hundred-thousandth  of one
percent) of the rates  quoted by major banks in New York,  New York  selected by
the Calculation  Agent, at approximately  10:00 a.m., New York City time, on the
first day of such Series 2003-2  Interest Period for loans in Dollars to leading
European banks for a period equal to one month;  provided,  finally,  that if no
such quotes are  provided,  "One-Month  LIBOR" for such Series  2003-2  Interest
Period  will mean  One-Month  LIBOR as in effect with  respect to the  preceding
Series 2003-2 Interest Period.

          The Issuer shall pay interest on overdue  installments  of interest at
the Class A-1 Note Rate to the extent lawful.

          As provided in the  Indenture and subject to certain  limitations  set
forth therein, the transfer of this Class A-1 Investor Note may be registered on
the  Note  Register  upon   surrender  of  this  Class  A-1  Investor  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  satisfactory  to the  Indenture  Trustee  duly
executed by, the Holder hereof or his attorney duly  authorized in writing,  and
thereupon one or more new Class A-1 Investor  Notes of authorized  denominations
in the  same  aggregate  principal  amount  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 Investor  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.

          By acquiring a Class A-1 Investor  Note or an interest  therein,  each
Class A-1 Investor  Noteholder  and each Class A-1  Investor  Note Owner and the
Issuer and the Indenture  Trustee hereby covenants and agrees that, prior to the
date  which is one year and one day  after  payment  in full of all  obligations
under each  Securitization,  it will not  institute  against,  or join any other
Person in instituting  against,  the Origination  Trust,  SPV, any other Special
Purpose  Entity,  or any general partner or single member of any Special Purpose
Entity that is a partnership or limited  liability  company,  respectively,  any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or
other proceedings under any federal or state bankruptcy or similar law.

          Each  Class A-1  Investor  Noteholder,  by  acceptance  of a Class A-1
Investor Note or, in the case of a Class A-1 Investor  Note Owner,  a beneficial
interest in a Class A-1 Investor Note, hereby represents, warrants and covenants
that (a) each of the Lease  SUBI and the  Fleet  Receivable  SUBI is a  separate
series of the Origination Trust as provided in Section  3806(b)(2) of Chapter 38
of Title 12 of the Delaware  Code,  12 Del.C.  Section 3801 et seq.,  (b)(i) the
debts, liabilities, obligations

                                      A-5

<PAGE>

and expenses incurred,  contracted for or otherwise existing with respect to the
Lease  SUBI,  the Lease SUBI  Portfolio  or the Fleet  Receivable  SUBI shall be
enforceable  against the Lease SUBI Portfolio or the Fleet Receivable SUBI only,
as applicable, and not against any other SUBI Portfolio or the UTI Portfolio and
(ii) the debts, liabilities,  obligations and expenses incurred,  contracted for
or otherwise  existing with respect to any other SUBI (used in this paragraph as
defined in the Origination Trust  Agreement),  any other SUBI Portfolio (used in
this paragraph as defined in the Origination  Trust  Agreement),  the UTI or the
UTI Portfolio shall be enforceable  against such other SUBI Portfolio or the UTI
Portfolio only, as applicable, and not against any other SUBI Assets, (c) except
to the extent  required by law,  UTI Assets or SUBI  Assets with  respect to any
SUBI  (other  than the Lease SUBI and the Fleet  Receivable  SUBI)  shall not be
subject to the claims, debts, liabilities,  expenses or obligations arising from
or with respect to the Lease SUBI or Fleet  Receivable  SUBI,  respectively,  in
respect of such claim,  (d)(i) no creditor or holder of a claim  relating to the
Lease  SUBI,  the Fleet  Receivable  SUBI or the Lease SUBI  Portfolio  shall be
entitled to maintain any action  against or recover any assets  allocated to the
UTI or the UTI Portfolio or any other SUBI or the assets allocated thereto,  and
(ii) no creditor or holder of a claim  relating to the UTI, the UTI Portfolio or
any SUBI  other  than the Lease  SUBI or the Fleet  Receivable  SUBI or any SUBI
Assets  other than the Lease SUBI  Portfolio or the Fleet  Receivables  shall be
entitled to maintain any action  against or recover any assets  allocated to the
Lease SUBI or the Fleet  Receivable  SUBI,  and (e) any  purchaser,  assignee or
pledgee of an interest in the Lease SUBI, the Lease SUBI Certificate,  the Fleet
Receivable  SUBI,  the  Lease  SUBI  Certificate,   the  Fleet  Receivable  SUBI
Certificate, any other SUBI, any other SUBI Certificate (used in this Section as
defined in the  Origination  Trust  Agreement),  the UTI or the UTI  Certificate
must,  prior  to or  contemporaneously  with the  grant of any such  assignment,
pledge or security  interest,  (i) give to the Origination  Trust a non-petition
covenant  substantially  similar  to  that  set  forth  in  Section  6.9  of the
Origination  Trust  Agreement,  and (ii) execute an agreement for the benefit of
each holder, assignee or pledgee from time to time of the UTI or UTI Certificate
and any other SUBI or SUBI  Certificate  to release  all claims to the assets of
the Origination  Trust allocated to the UTI and each other SUBI Portfolio and in
the event that such release is not given effect, to fully subordinate all claims
it may be deemed to have against the assets of the  Origination  Trust allocated
to the UTI Portfolio and each other SUBI Portfolio.

          Each Class A-1 Investor  Noteholder  or Class A-1 Investor Note Owner,
by  acceptance  of a Class  A-1  Investor  Note or,  in the case of a Class  A-1
Investor  Note  Owner,  a  beneficial  interest  in a Class A-1  Investor  Note,
covenants and agrees that by accepting  the benefits of the Indenture  that such
Class  A-1  Investor  Noteholder  or Class  A-1  Investor  Note  Owner  will not
institute  against,  or join with any other Person in instituting  against,  the
Issuer any bankruptcy,  reorganization,  arrangement,  insolvency or liquidation
proceedings,  or other  proceedings,  under any Federal or state  bankruptcy  or
similar law.

          It is the intent of the Issuer, each Class A-1 Investor Noteholder and
each Class A-1 Investor Note Owner that, for Federal, state and local income and
franchise  tax  purposes  only,  the  Class A-1  Investor  Notes  will  evidence
indebtedness of the Issuer secured by the Series 2003-2  Collateral.  Each Class
A-1  Investor  Noteholder  and  each  Class  A-1  Investor  Note  Owner,  by the
acceptance  of this  Class A-1  Investor  Note,  agrees to treat  this Class A-1
Investor  Note for  purposes of Federal,  state and local  income and  franchise
taxes and any other tax imposed on or measured by income, as indebtedness of the
Issuer.

          The Indenture  permits,  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 Holders of the Series 2003-2  Investor  Notes under
the  Indenture  at any time by the Issuer  with the  consent of the Holders of a
Majority in Interest of the Series 2003-2 Investor Notes

                                      A-6

<PAGE>

affected  by  such  amendment  or  modification.  The  Indenture  also  contains
provisions  permitting the Holders of Series 2003-2 Investor Notes  representing
specified  percentages of the aggregate  outstanding amount of the Series 2003-2
Investor  Notes,  on behalf of the  Holders  of all the Series  2003-2  Investor
Notes,  to  waive  compliance  by the  Issuer  with  certain  provisions  of the
Indenture and certain past defaults under the Indenture and their  consequences.
Any such consent or waiver by the Holder of this Class A-1 Investor Note (or any
one or more  predecessor  Class A-1  Investor  Notes)  shall be  conclusive  and
binding upon such Holder and upon all future  Holders of this Class A-1 Investor
Note and of any Class A-1 Investor 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 Investor  Note. The Indenture also
permits the Indenture Trustee to amend or waive certain terms and conditions set
forth in the  Indenture  without  the  consent of  Holders of the Series  2003-2
Investor Notes issued thereunder.

          The term "Issuer" as used in this Class A-1 Investor Note includes any
successor to the Issuer under the Indenture.

          The Class A-1 Investor  Notes are issuable only in registered  form in
denominations as provided in the Indenture,  subject to certain  limitations set
forth therein.

          This Class A-1 Investor Note and the  Indenture  shall be governed by,
and  construed in  accordance  with,  the law of the State of New York,  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 Investor  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 Investor  Note at the times,  place and rate,  and in
the coin or currency herein prescribed.

          Interests in this Global Note may be exchanged for  Definitive  Notes,
subject to the provisions of the Indenture.

                                      A-7

<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 Investor Note and all rights thereunder, and hereby
irrevocably constitutes and appoints ____________________, attorney, to transfer
said Class A-1 Investor Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:__________________            By:_______________________1

                                                     Signature Guaranteed:

                                              __________________________________

                                              __________________________________

_________________
1/   NOTE: The signature to this assignment must correspond with the name of the
     registered owner as it apears on the face of the within Class A-1 Investor
     Note, wihtout alteration, enlargement or any change whatsoever.

                                      A-8

<PAGE>
                                                                     EXHIBIT A-2
                                                                TO SERIES 2003-2
                                                            INDENTURE SUPPLEMENT

                     FORM OF GLOBAL CLASS A-2 INVESTOR NOTE

REGISTERED                                                          $270,000,000
No. R-001

                       SEE REVERSE FOR CERTAIN CONDITIONS

                                                    CUSIP (CINS) NO. 165182[___]
                                                          ISIN NO. US165182[___]

          THIS  NOTE IS A  GLOBAL  NOTE  WITHIN  THE  MEANING  OF THE  INDENTURE
HEREINAFTER  REFERRED TO AND IS REGISTERED IN THE NAME OF THE  DEPOSITORY  TRUST
COMPANY ("DTC"),  A NEW YORK  CORPORATION,  55 WATER STREET,  NEW YORK, NEW YORK
10004, OR A NOMINEE THEREOF.  THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART
FOR A SECURITY REGISTERED,  AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY
BE  REGISTERED,  IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE  THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

          UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF DTC
TO THE  ISSUER OR THE  TRANSFER  AGENT  AND  REGISTRAR,  AND ANY NOTE  ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED  REPRESENTATIVE  OF DTC,  AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC, ANY
TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS AN INTEREST HEREIN.

          THE   PRINCIPAL  OF  THIS  CLASS  A-2  INVESTOR  NOTE  IS  PAYABLE  IN
INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY,  THE OUTSTANDING PRINCIPAL AMOUNT
OF THIS CLASS A-2 INVESTOR NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON
THE FACE HEREOF.

                             CHESAPEAKE FUNDING LLC

        SERIES 2003-2 FLOATING RATE CALLABLE ASSET BACKED INVESTOR NOTES,
                                   CLASS A-2

                                      A-9

<PAGE>

          CHESAPEAKE  FUNDING LLC, a limited  liability company formed under the
laws of the State of Delaware  (herein  referred to as the "Issuer"),  for value
received,  hereby  promises to pay to Cede & Co.,  or  registered  assigns,  the
principal  sum of Two Hundred  Seventy  Million  Dollars,  which amount shall be
payable in the  amounts  and at the times set forth in the  Indenture  described
herein, provided, however, that the entire unpaid principal amount of this Class
A-2 Investor Note shall be due on the Class A-2 Final  Maturity  Date.  However,
principal with respect to the Class A-2 Investor Notes may be paid earlier under
certain limited  circumstances  described in the Indenture.  The Issuer will pay
interest  on this Class A-2 Note for each  Series  2003-2  Interest  Period,  in
accordance  with the terms of the  Indenture at the Class A-2 Note Rate for such
Interest  Period.  Each  "Series  2003-2  Interest  Period"  will  be  a  period
commencing  on and  including a Payment Date and ending on and including the day
preceding the next succeeding Payment Date; provided,  however, that the initial
Series 2003-2  Interest  Period shall  commence on and include the Series 2003-2
Closing  Date and end on and include  December 7, 2003.  Such  principal  of and
interest on this Class A-2 Investor  Note shall be paid in the manner  specified
on the reverse hereof and in the Indenture.

          The  principal  of and  interest on this Class A-2  Investor  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. All payments
made by the Issuer with respect to this Class A-2 Investor Note shall be applied
as provided in the Indenture. This Class A-2 Investor Note does not represent an
interest in, or an obligation of, PHH Vehicle Management Services LLC ("VMS") or
any affiliate of VMS other than the Issuer.

          Reference is made to the further provisions of this Class A-2 Investor
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 Investor Note.  Although a summary
of certain  provisions  of the  Indenture  is set forth below and on the reverse
hereof and made a part hereof,  this Class A-2 Investor 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 Issuer and
the  Indenture  Trustee.  A copy of the  Indenture  may be  requested  from  the
Indenture Trustee by writing to the Indenture Trustee at: JPMorgan Chase Bank, 4
New York Plaza, 6th Floor, New York, New York, 10004,  Attention:  Institutional
Trust  Services.  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 Indenture Trustee whose name appears below by manual  signature,  this Class
A-2  Investor  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.

                                      A-10

<PAGE>

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer.

Date:  ___________

                                       CHESAPEAKE FUNDING LLC

                                       By:___________________________
                                            Name:
                                            Title:

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Class A-2 Investor Notes issued under the
within-mentioned Indenture.

                                       JPMORGAN CHASE BANK, as Indenture Trustee

                                       By:___________________________
                                            Authorized Signatory

                                      A-11

<PAGE>

                      [REVERSE OF CLASS A-2 INVESTOR NOTE]

          This  Class A-2  Investor  Note is one of a duly  authorized  issue of
Class A-2 Investor  Notes of the Issuer  designated  its Series 2003-2  Floating
Rate Asset Backed Investor Notes (herein called the "Class A-2 Investor Notes"),
all  issued  under (i) a Base  Indenture  dated as of June 30,  1999  (such Base
Indenture,  as  amended or  modified,  is herein  called the "Base  Indenture"),
between  the  Issuer  and  JPMorgan  Chase  Bank  (formerly  known as The  Chase
Manhattan  Bank),  as Indenture  Trustee (the  "Indenture  Trustee",  which term
includes any successor  Indenture Trustee under the Base Indenture),  and (ii) a
Series 2003-2 Indenture  Supplement dated as of [__________],  2003 (the "Series
2003-2 Indenture  Supplement") between the Issuer and the Indenture Trustee. The
Base  Indenture and the Series 2003-2  Supplement  are referred to herein as the
"Indenture".  The  Class A-2  Investor  Notes  are  subject  to all terms of the
Indenture.  All terms used in this Class A-2  Investor  Note that are defined in
the Indenture,  as  supplemented,  modified or amended,  shall have the meanings
assigned to them in or pursuant to the Indenture,  as so supplemented,  modified
or amended.

          The  Class A-2  Investor  Notes are and will be  equally  and  ratably
secured by the Series 2003-2 Collateral pledged as security therefor as provided
in the Indenture and the Series 2003-2 Indenture Supplement.

          Principal  of the Class A-2  Investor  Notes  will be  payable on each
Payment  Date  specified  in and  in the  amounts  described  in the  Indenture.
"Payment  Date"  means  the  7th  day of each  month,  or if such  date is not a
Business Day, the next succeeding Business Day, commencing December 8, 2003.

          The entire unpaid principal amount of this Series 2003-2 Investor Note
shall be due and payable on the Class A-2 Final Maturity  Date.  Notwithstanding
the  foregoing,  principal on the Class A-2 Investor  Notes will be paid earlier
during the Series 2003-2 Amortization Period as described in the Indenture.  All
principal payments on the Class A-2 Investor Notes shall be made pro rata to the
Class A-2 Investor Noteholders entitled thereto.

          The Issuer will have the option to prepay the Series  2003-2  Investor
Notes,  in whole but not in part,  on any Payment Date after the Payment Date in
June 2005.  The  prepayment  price for the Series 2003-2  Investor Notes will be
equal to the amount set forth in the Indenture.

          Interest will accrue on this Class A-2 Investor  Notes for each Series
2003-2 Interest Period at a rate equal to (i) with respect to the initial Series
2003-2  Interest  Period,  [___]% per annum and (ii) with respect to each Series
2003-2 Interest Period thereafter, a rate per annum equal to One-Month LIBOR for
such Series  2003-2  Interest  Period plus [___]% per annum (the "Class A-2 Note
Rate").  "One-Month  LIBOR" means, for each Series 2003-2 Interest  Period,  the
rate  per  annum  determined  on the  related  LIBOR  Determination  Date by the
Calculation  Agent to be the rate for Dollar deposits having a maturity equal to
one month that appears on Telerate Page 3750 at approximately 11:00 a.m., London
time, on such LIBOR Determination  Date;  provided,  however,  that if such rate
does not appear on  Telerate  Page  3750,  One-Month  LIBOR will mean,  for such
2003-2 Interest Period, the rate per annum equal to the arithmetic mean (rounded
to the nearest one-one-hundred-thousandth of one percent) of the rates

                                      A-12

<PAGE>

quoted by the  Reference  Banks to the  Calculation  Agent as the rates at which
deposits in Dollars are offered by the Reference  Banks at  approximately  11:00
a.m., London time, on the LIBOR  Determination Date to prime banks in the London
interbank  market for a period equal to one month;  provided,  further,  that if
fewer than two  quotations  are provided as requested  by the  Reference  Banks,
"One-Month  LIBOR"  for  such  Series  2003-2  Interest  Period  will  mean  the
arithmetic  mean  (rounded  to  the  nearest  one-one-hundred-thousandth  of one
percent) of the rates  quoted by major banks in New York,  New York  selected by
the Calculation  Agent, at approximately  10:00 a.m., New York City time, on the
first day of such Series 2003-2  Interest Period for loans in Dollars to leading
European banks for a period equal to one month;  provided,  finally,  that if no
such quotes are  provided,  "One-Month  LIBOR" for such Series  2003-2  Interest
Period  will mean  One-Month  LIBOR as in effect with  respect to the  preceding
Series 2003-2 Interest Period.

          The Issuer shall pay interest on overdue  installments  of interest at
the Class A-2 Note Rate to the extent lawful.

          As provided in the  Indenture and subject to certain  limitations  set
forth therein, the transfer of this Class A-2 Investor Note may be registered on
the  Note  Register  upon   surrender  of  this  Class  A-2  Investor  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  satisfactory  to the  Indenture  Trustee  duly
executed by, the Holder hereof or his attorney duly  authorized in writing,  and
thereupon one or more new Class A-2 Investor  Notes of authorized  denominations
in the  same  aggregate  principal  amount  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 Investor  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.

          By acquiring a Class A-2 Investor  Note or an interest  therein,  each
Class A-2 Investor  Noteholder  and each Class A-2  Investor  Note Owner and the
Issuer and the Indenture  Trustee hereby covenants and agrees that, prior to the
date  which is one year and one day  after  payment  in full of all  obligations
under each  Securitization,  it will not  institute  against,  or join any other
Person in instituting  against,  the Origination  Trust,  SPV, any other Special
Purpose  Entity,  or any general partner or single member of any Special Purpose
Entity that is a partnership or limited  liability  company,  respectively,  any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or
other proceedings under any federal or state bankruptcy or similar law.

          Each  Class A-2  Investor  Noteholder,  by  acceptance  of a Class A-2
Investor Note or, in the case of a Class A-2 Investor  Note Owner,  a beneficial
interest in a Class A-2 Investor Note, hereby represents, warrants and covenants
that (a) each of the Lease  SUBI and the  Fleet  Receivable  SUBI is a  separate
series of the Origination Trust as provided in Section  3806(b)(2) of Chapter 38
of Title 12 of the Delaware  Code,  12 Del.C.  Section 3801 et seq.,  (b)(i) the
debts, liabilities, obligations

                                      A-13

<PAGE>

and expenses incurred,  contracted for or otherwise existing with respect to the
Lease  SUBI,  the Lease SUBI  Portfolio  or the Fleet  Receivable  SUBI shall be
enforceable  against the Lease SUBI Portfolio or the Fleet Receivable SUBI only,
as applicable, and not against any other SUBI Portfolio or the UTI Portfolio and
(ii) the debts, liabilities,  obligations and expenses incurred,  contracted for
or otherwise  existing with respect to any other SUBI (used in this paragraph as
defined in the Origination Trust  Agreement),  any other SUBI Portfolio (used in
this paragraph as defined in the Origination  Trust  Agreement),  the UTI or the
UTI Portfolio shall be enforceable  against such other SUBI Portfolio or the UTI
Portfolio only, as applicable, and not against any other SUBI Assets, (c) except
to the extent  required by law,  UTI Assets or SUBI  Assets with  respect to any
SUBI  (other  than the Lease SUBI and the Fleet  Receivable  SUBI)  shall not be
subject to the claims, debts, liabilities,  expenses or obligations arising from
or with respect to the Lease SUBI or Fleet  Receivable  SUBI,  respectively,  in
respect of such claim,  (d)(i) no creditor or holder of a claim  relating to the
Lease  SUBI,  the Fleet  Receivable  SUBI or the Lease SUBI  Portfolio  shall be
entitled to maintain any action  against or recover any assets  allocated to the
UTI or the UTI Portfolio or any other SUBI or the assets allocated thereto,  and
(ii) no creditor or holder of a claim  relating to the UTI, the UTI Portfolio or
any SUBI  other  than the Lease  SUBI or the Fleet  Receivable  SUBI or any SUBI
Assets  other than the Lease SUBI  Portfolio or the Fleet  Receivables  shall be
entitled to maintain any action  against or recover any assets  allocated to the
Lease SUBI or the Fleet  Receivable  SUBI,  and (e) any  purchaser,  assignee or
pledgee of an interest in the Lease SUBI, the Lease SUBI Certificate,  the Fleet
Receivable  SUBI,  the  Lease  SUBI  Certificate,   the  Fleet  Receivable  SUBI
Certificate, any other SUBI, any other SUBI Certificate (used in this Section as
defined in the  Origination  Trust  Agreement),  the UTI or the UTI  Certificate
must,  prior  to or  contemporaneously  with the  grant of any such  assignment,
pledge or security  interest,  (i) give to the Origination  Trust a non-petition
covenant  substantially  similar  to  that  set  forth  in  Section  6.9  of the
Origination  Trust  Agreement,  and (ii) execute an agreement for the benefit of
each holder, assignee or pledgee from time to time of the UTI or UTI Certificate
and any other SUBI or SUBI  Certificate  to release  all claims to the assets of
the Origination  Trust allocated to the UTI and each other SUBI Portfolio and in
the event that such release is not given effect, to fully subordinate all claims
it may be deemed to have against the assets of the  Origination  Trust allocated
to the UTI Portfolio and each other SUBI Portfolio.

          Each Class A-2 Investor  Noteholder  or Class A-2 Investor Note Owner,
by  acceptance  of a Class  A-2  Investor  Note or,  in the case of a Class  A-2
Investor  Note  Owner,  a  beneficial  interest  in a Class A-2  Investor  Note,
covenants and agrees that by accepting  the benefits of the Indenture  that such
Class  A-2  Investor  Noteholder  or Class  A-2  Investor  Note  Owner  will not
institute  against,  or join with any other Person in instituting  against,  the
Issuer any bankruptcy,  reorganization,  arrangement,  insolvency or liquidation
proceedings,  or other  proceedings,  under any Federal or state  bankruptcy  or
similar law.

          It is the intent of the Issuer, each Class A-2 Investor Noteholder and
each Class A-2 Investor Note Owner that, for Federal, state and local income and
franchise  tax  purposes  only,  the  Class A-2  Investor  Notes  will  evidence
indebtedness of the Issuer secured by the Series 2003-2  Collateral.  Each Class
A-2  Investor  Noteholder  and  each  Class  A-2  Investor  Note  Owner,  by the
acceptance  of this  Class A-2  Investor  Note,  agrees to treat  this Class A-2
Investor  Note for  purposes of Federal,  state and local  income and  franchise
taxes and any other tax imposed on or measured by income, as indebtedness of the
Issuer.

          The Indenture  permits,  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 Holders of the Series 2003-2  Investor  Notes under
the  Indenture  at any time by the Issuer  with the  consent of the Holders of a
Majority in Interest of the Series 2003-2 Investor Notes

                                      A-14

<PAGE>

affected  by  such  amendment  or  modification.  The  Indenture  also  contains
provisions  permitting the Holders of Series 2003-2 Investor Notes  representing
specified  percentages of the aggregate  outstanding amount of the Series 2003-2
Investor  Notes,  on behalf of the  Holders  of all the Series  2003-2  Investor
Notes,  to  waive  compliance  by the  Issuer  with  certain  provisions  of the
Indenture and certain past defaults under the Indenture and their  consequences.
Any such consent or waiver by the Holder of this Class A-2 Investor Note (or any
one or more  predecessor  Class A-2  Investor  Notes)  shall be  conclusive  and
binding upon such Holder and upon all future  Holders of this Class A-2 Investor
Note and of any Class A-2 Investor 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 Investor  Note. The Indenture also
permits the Indenture Trustee to amend or waive certain terms and conditions set
forth in the  Indenture  without  the  consent of  Holders of the Series  2003-2
Investor Notes issued thereunder.

          The term "Issuer" as used in this Class A-2 Investor Note includes any
successor to the Issuer under the Indenture.

          The Class A-2 Investor  Notes are issuable only in registered  form in
denominations as provided in the Indenture,  subject to certain  limitations set
forth therein.

          This Class A-2 Investor Note and the  Indenture  shall be governed by,
and  construed in  accordance  with,  the law of the State of New York,  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 Investor  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 Investor  Note at the times,  place and rate,  and in
the coin or currency herein prescribed.

          Interests in this Global Note may be exchanged for  Definitive  Notes,
subject to the provisions of the Indenture.

                                      A-15

<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 Investor Note and all rights thereunder, and hereby
irrevocably constitutes and appoints ____________________, attorney, to transfer
said Class A-2 Investor Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:__________________              By:_______________________2

                                               Signature Guaranteed:

                                         __________________________________

                                         __________________________________

___________________
2/   NOTE: The signature to this assignment must correspond with the name of the
     registered owner as it appears on the face of the within Class A-2 Investor
     Note, without alteration, enlargement or any change whatsoever.

                                      A-16

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