Document:

<Page>

                                                                   Exhibit 10.16

                                                                  EXECUTION COPY

================================================================================

                        TRANSFER AND SERVICING AGREEMENT

                           Dated as of April 25, 2000

                                 by and between

                        APPLE RIDGE SERVICES CORPORATION
                                 as transferor,

                      CENDANT MOBILITY SERVICES CORPORATION
                           as originator and servicer,

                     CENDANT MOBILITY FINANCIAL CORPORATION
                                 as originator,

                             APPLE RIDGE FUNDING LLC
                                  as transferee

                                       and

                         BANK ONE, NATIONAL ASSOCIATION

                              as Indenture Trustee

================================================================================
<Page>

                                TABLE OF CONTENTS

                                                                            PAGE

                                    ARTICLE I

                                   DEFINITIONS

Section 1.01  Definitions......................................................1

Section 1.02  Other Definitional Provisions....................................9

                                   ARTICLE II

                           SALE AND PURCHASE OF ASSETS

Section 2.01  Sale and Purchase...............................................10

Section 2.02  Representations and Warranties of the Transferor................12

Section 2.03  Representations and Warranties of the Issuer....................16

Section 2.04  No Assumption of Obligations Relating to Transferred Assets;

              Excess Home Sale Proceeds.......................................17

Section 2.05  Affirmative Covenants of the Transferor.........................17

Section 2.06  Negative Covenants of the Transferor............................20

                                   ARTICLE III

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

Section 3.01  Acceptance of Appointment and Other Matters Relating to the

              Servicer........................................................22

Section 3.02  Duties of the Servicer and the Issuer...........................22

Section 3.03  Servicing Compensation..........................................25

Section 3.04  Representations and Warranties of the Servicer..................25

Section 3.05  Affirmative Covenants of Servicer...............................28

Section 3.06  Negative Covenants of Servicer..................................30

Section 3.07  Records of the Servicer and Reports to be Prepared by the
              Servicer........................................................31

Section 3.08  Annual Certificate of Servicer..................................32

Section 3.09  Annual Servicing Report of Independent Public Accountants;

              Copies of Reports Available.....................................32

                                      -i-
<Page>

                                TABLE OF CONTENTS

                                   (CONTINUED)

                                                                            PAGE

Section 3.10  Adjustments; Modifications......................................33

Section 3.11. Escrow Agents...................................................34

Section 3.12. Servicer Advances...............................................34

Section 3.13. Calculations....................................................34

Section 3.14. Application of Collections......................................34

                                   ARTICLE IV

                          ACCOUNTS AND POOL COLLECTIONS

Section 4.01  Establishment of Collection Account.............................36

Section 4.02  Pool Collections and Allocations................................36

Section 4.03  Withdrawals from the Collection Account.........................37

                                    ARTICLE V

                                SECURITY INTEREST

Section 5.01  Security Interest...............................................38

Section 5.02  Enforcement of Rights...........................................38

                                   ARTICLE VI

                    OTHER MATTERS RELATING TO THE TRANSFEROR

Section 6.01  Liability of the Transferor.....................................39

Section 6.02  Indemnification by the Transferor...............................39

                                   ARTICLE VII

                     OTHER MATTERS RELATING TO THE SERVICER

Section 7.01  Liability of the Servicer.......................................41

Section 7.02  Merger or Consolidation of, or Assumption of the Obligations of,

              the Servicer....................................................41

Section 7.03  Limitation on Liability of the Servicer and Others..............41

                                      -ii-
<Page>

                                TABLE OF CONTENTS

                                   (CONTINUED)

                                                                            PAGE

Section 7.04  Indemnification by the Servicer.................................42

Section 7.05  Resignation of the Servicer.....................................42

Section 7.06  Access to Certain Documentation and Information Regarding the
              Receivables.....................................................43

                                  ARTICLE VIII

                                   TERMINATION

Section 8.01  Transfer Termination Events.....................................44

Section 8.02  Transfer Termination............................................45

                                   ARTICLE IX

                                SERVICER DEFAULTS

Section 9.01  Servicer Defaults...............................................46

Section 9.02  Performance by Issuer...........................................48

Section 9.03  Indenture Trustee To Act; Appointment of Successor..............48

Section 9.04  Notification to Holders.........................................50

Section 9.05  Marketing Expenses Account......................................50

                                    ARTICLE X

                                   TERMINATION

Section 10.01  Termination....................................................52

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

Section 11.01  Amendment......................................................53

Section 11.02  Governing Law..................................................53

Section 11.03  Notices; Payments..............................................53

Section 11.04  Severability of Provisions.....................................54

                                     -iii-
<Page>

                                TABLE OF CONTENTS

                                   (CONTINUED)

                                                                            PAGE

Section 11.05  Further Assurances.............................................54

Section 11.06  Nonpetition Covenant...........................................54

Section 11.07  No Waiver; Cumulative Remedies.................................54

Section 11.08  Counterparts...................................................54

Section 11.09  Third-Party Beneficiaries......................................55

Section 11.10  Merger and Integration.........................................55

Section 11.11  Headings.......................................................55

Section 11.12  Confidentiality................................................55

Section 11.13  Costs, Expenses and Taxes......................................55

Section 11.14  Submission to Jurisdiction.....................................55

Section 11.15  Waiver of Jury Trial...........................................56

Section 11.16  Acknowledgment and Consent.....................................57

Section 11.17  No Partnership or Joint Venture................................57

                                       iv
<Page>

                                    SCHEDULES

SCHEDULE 2.02(m)        Principal Place of Business and Chief Executive Office
                        of the Transferor and List of Offices Where the Servicer
                        Keeps Records Related to the Transferred Assets

SCHEDULE 2.02(o)        List of Legal Names

SCHEDULE 3.04(l)        List of Lockbox Banks

                                     EXHIBIT

EXHIBIT A               Form of Annual Servicer's Certificate

EXHIBIT B               Forms of Lockbox Agreements

EXHIBIT C               List of Servicing Officers

                                      -v-
<Page>

            THIS TRANSFER AND SERVICING AGREEMENT (this "AGREEMENT") dated as of
April 25, 2000 is made by and between APPLE RIDGE SERVICES CORPORATION, a
Delaware corporation, as transferor, CENDANT MOBILITY SERVICES CORPORATION, a
Delaware corporation, as originator and servicer ("CMSC" or the "SERVICER"),
CENDANT MOBILITY FINANCIAL CORPORATION, a Delaware corporation, as originator
("CMF"), APPLE RIDGE FUNDING LLC, a Delaware limited liability company (the
"ISSUER"), as transferee, and BANK ONE, NATIONAL ASSOCIATION, as Indenture
Trustee.

            In consideration of the mutual agreements herein contained, each
party agrees as follows for the benefit of the other parties, the Indenture
Trustee and the holders of any Notes issued by the Issuer from time to time
under the Indenture to the extent provided herein:

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01 DEFINITIONS. Capitalized terms used in this Agreement
but not defined herein shall have the meanings assigned to them in the
Receivables Purchase Agreement or Purchase Agreement, as applicable. Whenever
used in this Agreement, the following words and phrases shall have the following
meanings, and the definitions of such terms are applicable to the singular as
well as the plural forms of such terms and to the masculine as well as to the
feminine and neuter genders of such terms.

            "AGREEMENT" shall mean this Transfer and Servicing Agreement and all
amendments hereof and supplements hereto.

            "ARF PURCHASE PRICE" shall have the meaning set forth in Section
2.01(i).

            "ARSC INDEMNIFIED LOSSES" shall have the meaning set forth in
Section 6.02.

            "ARSC INDEMNIFIED PARTY" shall have the meaning set forth in Section
6.02.

            "ASSET DEFICIENCY" shall have the meaning set forth in the
Indenture.

            "CASH EQUIVALENTS" shall mean (i) investments in commercial paper
maturing in not more than 270 days from the date of issuance which at the time
of acquisition is rated at least A-1 or the equivalent thereof by Standard &
Poor's or P-1 or the equivalent thereof by Moody's, (ii) investments in direct
obligations or obligations that are guaranteed or insured by the United States
or any agency or instrumentality thereof (PROVIDED that the full faith and
credit of the United States is pledged in support thereof) having a maturity of
not more than three years from the date of acquisition, (iii) investments in
certificates of deposit maturing not more than one year from the date of origin
issued by a bank or trust company organized or licensed under the laws of the
United States or any state or territory thereof having capital, surplus and
undivided profits aggregating at least $500,000,000 and rated A or better by
Standard & Poor's or A2 or better by Moody's, (iv) money market mutual funds
having assets in excess of $2,000,000,000, (v) investments in asset-backed or
mortgage-backed securities, including investments in collateralized, adjustable
rate mortgage securities and those mortgage-backed securities that are rated at
least AA by Standard & Poor's or Aa by Moody's or are of comparable quality at
the

<Page>

time of investment and (vi) banker's acceptances maturing not more than one year
from the date of origin issued by a bank or trust company organized or licensed
under the laws of the United States or any state or territory thereof and having
capital, surplus and undivided profits aggregating at least $500,000,000, and
rated A or better by Standard & Poor's or A2 or better by Moody's.

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

            "COLLECTION ACCOUNT" shall have the meaning provided in Section
4.01.

            "CONSOLIDATED NET INCOME" shall mean, for any period for which such
amount is being determined, the net income (or loss) of PHH and its Consolidated
Subsidiaries during such period determined on a consolidated basis for such
period taken as a single accounting period in accordance with GAAP, PROVIDED
that there shall be excluded (i) income (or loss) of any Person (other than a
Consolidated Subsidiary) in which PHH or any of its Consolidated Subsidiaries
has an equity investment or comparable interest, except to the extent of the
amount of dividends or other distributions actually paid to PHH or its
Consolidated Subsidiaries by such Person during such period, (ii) the income (or
loss) of any Person accrued prior to the date it becomes a Consolidated
Subsidiary or is merged into or consolidated with PHH or any of its Consolidated
Subsidiaries or the Person's assets are acquired by PHH or any of its
Consolidated Subsidiaries, (iii) the income of any Consolidated Subsidiary to
the extent that the declaration or payment of dividends or similar distributions
by the Consolidated Subsidiary of the income is not at the time permitted by
operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that
Consolidated Subsidiary, (iv) any extraordinary after-tax gains and (v) any
extraordinary pretax losses but only to the extent attributable to a write-down
of financing costs relating to any existing and future indebtedness.

            "CONSOLIDATED NET WORTH" shall mean, at any date of determination,
all amounts that would be included on a balance sheet of PHH and its
Consolidated Subsidiaries under stockholders' equity as of such date in
accordance with GAAP.

            "CONSOLIDATED SUBSIDIARIES" shall mean all subsidiaries of PHH that
are required to be consolidated with PHH for financial reporting purposes in
accordance with GAAP.

            "DISTRIBUTION DATE" shall mean, with respect to any Series, the date
specified in the applicable Supplement for payments to holders of the Notes of
that Series.

            "DOLLARS," "$" or "U.S. $" shall mean United States dollars.

            "ELIGIBLE ACCOUNT" shall mean an account that is (i) maintained with
a depository institution whose short-term debt obligations at the time of any
deposit therein are rated in the highest short-term debt rating categories by
Moody's and Standard & Poor's, (ii) one or more accounts maintained with a
depository institution, which accounts are fully insured by the FDIC, with a
minimum long-term unsecured debt rating of "A3" by Moody's and "BBB+" by
Standard & Poor's, (iii) a segregated trust account maintained with the
corporate trust office of the Indenture Trustee or an Affiliate of the Indenture
Trustee, in either case in its fiduciary capacity

                                       2
<Page>

or (iv) an account otherwise acceptable to each Rating Agency as evidenced by
the delivery of a rating letter by each Rating Agency on the Closing Date.

            "ELIGIBLE INVESTMENTS" shall mean the following instruments,
investment property, or other property, other than securities issued by or
obligations of CMSC or any of its Affiliates:

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

            (b) demand deposits, time deposits or certificates of deposit
(having original maturities of no more than 365 days) of depository institutions
or trust companies incorporated under the laws of the United States of America
or any state thereof, including the District of Columbia (or domestic branches
of foreign banks) and subject to supervision and examination by federal or state
banking or depository institution authorities, PROVIDED that, at the time of the
Issuer's investment or contractual commitment to invest therein, the short-term
debt rating of such depository institution or trust company shall be A-1+ by
Standard & Poor's and P-1 by Moody's;

            (c) commercial paper (having original or remaining maturities of no
more than 30 days) having, at the time of the Issuer's investment or contractual
commitment to invest therein, a short-term debt rating of A-1+ by Standard &
Poor's and P-1 by Moody's;

            (d) demand deposits, time deposits and certificates of deposit that
are fully insured by the FDIC having, at the time of the Issuer's investment
therein, a short-term debt rating of A-1+ by Standard & Poor's and P-1 by
Moody's;

            (e) bankers' acceptances (having original maturities of no more than
365 days) issued by any depository institution or trust company referred to in
clause (b) above;

            (f) money market funds having, at the time of the Issuer's
investment therein, a rating of AAAm or AAAm-G by Standard & Poor's or Aaa by
Moody's (including funds for which the Indenture Trustee or any of its
Affiliates is investment manager or advisor);

            (g) time deposits and eurodollar deposits (having maturities not
later than the succeeding Distribution Date) other than as referred to in clause
(d) above, with a Person the commercial paper of which has a credit rating of at
least A-1+ by Standard & Poor's and P-1 by Moody's; or

            (h) any other investment of a type or rating that satisfies the
Rating Agency Condition.

            "ELIGIBLE RECEIVABLES" shall have the meaning provided in the
Receivables Purchase Agreement.

            "ELIGIBLE SERVICER" shall mean CMSC or, if CMSC is not acting as
Servicer, an entity that, at the time of its appointment as Servicer, (a) is
servicing a portfolio of relocation services accounts and is acceptable to the
Indenture Trustee, each Series Enhancer and the Rating Agencies, (b) is legally
qualified and has the capacity to service the Receivables, (c) in

                                       3
<Page>

the determination of the Majority Investors, has demonstrated the ability to
service professionally and competently a portfolio of similar accounts in
accordance with high standards of skill and care, (d) is qualified to use the
software that is then being used to service the Receivables or obtains the right
to use or has its own software that is adequate to perform its duties under this
Agreement and (e) has a net worth of at least $ 25,000,000 as of the end of its
most recent fiscal quarter (or such lesser net worth as may be approved by the
Majority Investors).

            "FDIC" shall mean the Federal Deposit Insurance Corporation or any
successor.

            "FINAL STATED MATURITY DATE" shall have the meaning set forth in the
Indenture.

            "HOME PURCHASE PRICE" shall mean, with respect to any Home, the
appraised or other value set forth in the related Home Purchase Contract as the
purchase price for such Home.

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

            "INDENTURE" shall mean the master indenture dated as of April 25,
2000, by and between the Issuer, the Indenture Trustee and The Bank of New York,
as Paying Agent, Authentication Agent and Transfer Agent and Registrar.

            "INDENTURE TRUSTEE" shall mean Bank One, National Association,
acting in its capacity as Indenture Trustee under the Indenture.

            "INVESTMENT COMPANY ACT" shall mean the Investment Company Act of
1940, as amended.

            "LOCKBOX" shall mean any post office box to which the Obligors remit
Pool Collections.

            "LOCKBOX ACCOUNT" shall mean each lockbox account and associated
demand deposit account established pursuant to the Lockbox Agreement and such
other lockbox accounts and associated demand deposit accounts that the Servicer
may establish from time to time pursuant to a Lockbox Agreement.

            "LOCKBOX AGREEMENT" shall mean each lockbox agreement attached as
Exhibit B and any other lockbox agreement pursuant to which the Servicer
establishes a Lockbox Account in the name of the Indenture Trustee.

                                       4
<Page>

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

            "MAJORITY INVESTORS" shall have the meaning set forth in the
Indenture.

            "MARKETING EXPENSES ACCOUNT" shall mean the account established
pursuant to Section 9.05.

            "MATERIAL ADVERSE EFFECT" shall mean, with respect to any Person and
any event or circumstance, a material adverse effect on (a) the business,
financial condition, operations or assets of such Person, (b) the ability of
such Person to perform its obligations under any Transaction Document to which
it is a party or, if applicable, all or any substantial portion of the
Contracts, (c) the validity or enforceability of, or collectibility of, amounts
payable by such Person under any Transaction Document to which it is a party,
(d) the status, existence, perfection or priority of the interest of the Issuer
and its assignees in the Transferred Assets, taken as a whole, in each case free
and clear of any Lien (other than a Permitted Lien) or (e) the validity,
enforceability or collectibility of all or any substantial portion of the
Transferred Assets.

            "MOODY'S" shall mean Moody's Investors Service or its successor.

            "NONRECOVERABLE ADVANCE" shall mean any Servicer Advance previously
made in respect of a Home the Receivable arising from which has become a
Defaulted Receivable.

            "NOTE" shall have the meaning provided in the Indenture.

            "OFFICER'S CERTIFICATE" shall mean, unless otherwise specified in
this Agreement, a certificate delivered as provided herein, signed:

            (a) by the President, any Vice President or the chief financial
officer of the Transferor or the Servicer, as the case may be, or

            (b) by the President, any Vice President or the financial controller
of any Successor Servicer

(or by an officer holding an office with equivalent or more senior
responsibilities or, in the case of the Servicer or Successor Servicer, a
Servicing Officer, and, in the case of the Transferor, any executive of the
Transferor designated in writing by a Vice President or more senior officer of
the Transferor for this purpose).

            "OPINION OF COUNSEL" shall mean a written opinion of counsel, who
may be counsel for, or an employee of, the Person providing the opinion and who
shall be reasonably acceptable to the Issuer and the Indenture Trustee.

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

            "OUTSTANDING AMOUNT" shall have the meaning set forth in the
Indenture.

                                       5
<Page>

            "PHH INDEBTEDNESS" shall mean (i) all indebtedness, obligations and
other liabilities of PHH and its Consolidated Subsidiaries that are, at the date
as of which PHH Indebtedness is to be determined, includable as liabilities in a
consolidated balance sheet of PHH and its Consolidated Subsidiaries, other than
(x) accounts payable and accrued expenses, (y) advances from clients obtained in
the ordinary course of the relocation management services business of PHH and
its Consolidated Subsidiaries and (z) current and deferred income taxes and
other similar liabilities, PLUS (ii) without duplicating any items included in
PHH Indebtedness pursuant to the foregoing clause (i), the maximum aggregate
amount of all liabilities of PHH or any of its Consolidated Subsidiaries under
any guaranty, indemnity or similar undertaking given or assumed of, or in
respect of, the indebtedness, obligations or other liabilities, assets,
revenues, income or dividends of any person other than PHH or one of its
Consolidated Subsidiaries and (iii) all other obligations or liabilities of PHH
or any of its Consolidated Subsidiaries in relation to the discharge of the
obligations of any Person other than PHH or one of its Consolidated
Subsidiaries.

            "POSSESSION DATE" shall have, with respect to any Home, the meaning
provided in the related Home Purchase Contract.

            "PURCHASE" shall mean each purchase of Receivables, Related Assets
and other ARSC Purchased Assets by the Issuer from ARSC hereunder.

            "PURCHASE AGREEMENT" shall mean the purchase agreement dated as of
April 25, 2000, between CMSC and CMF, as amended from time to time.

            "RATING AGENCY" shall mean, with respect to any outstanding Series,
each rating agency, if any, specified in the applicable Supplement, selected by
the Issuer to rate the Notes of such Series.

            "RATING AGENCY CONDITION" shall mean, with respect to any action,
that each Rating Agency shall have notified the Transferor, the Servicer, the
Indenture Trustee and the Issuer in writing that such action will not result in
a reduction, qualification or withdrawal of the then existing rating of any
outstanding Series with respect to which it is a Rating Agency (or, in the case
of any Series covered by a financial insurance policy or surety bond, the
reduction, qualification or withdrawal of the then existing rating of such
Series without giving effect to such insurance policy or surety bond, with such
notice also addressed to the issuer of the applicable insurance policy or surety
bond) or, with respect to any outstanding Series not rated by any Rating Agency,
the required consent specified in the Supplement for such Series.

            "RECEIVABLES ACTIVITY REPORT" shall have the meaning provided in
Section 3.07(c).

            "RECEIVABLES PURCHASE AGREEMENT" shall mean the receivables purchase
agreement dated as of April 25, 2000, between CMF and the Transferor, as amended
from time to time.

            "REQUIRED MARKETING EXPENSES ACCOUNT AMOUNT" shall mean, on any
Distribution Date, an amount equal to:

                                       6
<Page>

            (i) zero, if the average number of days the Homes relating to
      outstanding Pool Receivables have been owned by CMSC and CMF (excluding
      any such Homes relating to Self-Funding Obligors) as of the close of
      business on the last Business Day of the immediately preceding Monthly
      Period was 150 days or less;

            (ii) 2.5% of the aggregate Home Purchase Price for all Homes owned
      by CMSC and CMF (excluding any Homes relating to Self-Funding Obligors) as
      of the close of business on the last Business Day of the immediately
      preceding Monthly Period, if the average number of days such Homes have
      been owned by CMSC and CMF as of the close of business on the last day of
      the immediately preceding Monthly Period was greater than 150 days but
      less than or equal to 160 days;

            (iii) 3.0% of the aggregate Home Purchase Price for all Homes owned
      by CMSC and CMF (excluding any Homes relating to Self-Funding Obligors) as
      of the close of business on the last Business Day of the immediately
      preceding Monthly Period, if the average number of days such Homes have
      been owned by CMSC and CMF as of the close of business on the last day of
      the immediately preceding Monthly Period was greater than 160 days but
      less than or equal to 170 days;

            (iv) 4.0% of the aggregate Home Purchase Price for all Homes owned
      by CMSC and CMF (excluding any Homes relating to Self-Funding Obligors) as
      of the close of business on the last Business Day of the immediately
      preceding Monthly Period, if the average number of days such Homes have
      been owned by CMSC and CMF as of the close of business on the last day of
      the immediately preceding Monthly Period was greater than 170 days but
      less than or equal to 180 days; and

            (v) 5.0% of the aggregate Home Purchase Price for all Homes owned by
      CMSC and CMF (excluding any Homes relating to Self-Funding Obligors) as of
      the close of business on the last Business Day of the immediately
      preceding Monthly Period, if the average number of days such Homes have
      been owned by CMSC and CMF as of the close of business on the last day of
      the immediately preceding Monthly Period was greater than 180 days.

            "SERIES ACCOUNT" shall mean any account or accounts established
pursuant to the Supplement for any Series of Notes.

            "SERVICE TRANSFER" shall have the meaning specified in Section 9.01.

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

            "SERVICER ADVANCE" shall mean any out-of-pocket payments made by the
Servicer with respect to a CMF Home, including but not limited to maintenance,
repairs, utilities, insurance, taxes, assessments, Mortgage Payoffs, Mortgage
Payments, Other Reimbursable Expenses, homeowners or association dues and other
costs of ownership.

                                       7
<Page>

            "SERVICER DEFAULT" shall have the meaning set forth in Section 9.01.

            "SERVICER DILUTION ADJUSTMENT" shall have the meaning set forth in
Section 3.10(a).

            "SERVICING FEE" shall have the meaning specified in Section 3.03.

            "SERVICING OFFICER" shall mean any officer of the Servicer or an
attorney-in-fact of the Servicer who in either case is involved in, or
responsible for, the administration and servicing of the Receivables and whose
name appears on a list of servicing officers furnished to the Issuer and the
Indenture Trustee by the Servicer, as such list may from time to time be
amended. The initial list of Servicing Officers is set forth in Exhibit C.

            "STANDARD & POOR'S" shall mean Standard & Poor's Ratings Services or
its successor.

            "SUB-SERVICER" shall have the meaning set forth in Section 3.01(b).

            "SUCCESSOR SERVICER" shall have the meaning provided in Section
9.03(a).

            "SUPPLEMENT" shall mean, with respect to any Series, a supplement to
the Indenture, executed and delivered in connection with the original issuance
of the Notes of such Series, including all amendments thereof and supplements
thereto.

            "TERMINATION NOTICE" shall have the meaning set forth in Section
9.01.

            "TRANSFER TERMINATION DATE" shall mean the date specified by the
Indenture Trustee at the direction of the Majority Investors following the
occurrence of a Transfer Termination Event; PROVIDED, HOWEVER, that if an Event
of Bankruptcy has occurred with respect to either ARSC or the Issuer, the
Transfer Termination Date shall be deemed to have occurred automatically without
any such notice.

            "TRANSFER TERMINATION EVENT" shall have the meaning set forth in
Section 8.01.

            "TRANSFEROR" shall mean Apple Ridge Services Corporation, a wholly
owned special purpose subsidiary of CMF incorporated in the State of Delaware,
or its successor under this Agreement.

            "TRANSFERRED ASSETS" shall have the meaning set forth in Section
2.01(a).

            "UNMATURED SERVICER DEFAULT" shall mean any event that, with the
giving of notice or lapse of time, or both, would become a Servicer Default.

                                       8
<Page>

            Section 1.02 OTHER DEFINITIONAL PROVISIONS.

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

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

            (c) AGREEMENTS, REPRESENTATIONS AND WARRANTIES. The agreements,
representations and warranties of ARSC and CMSC in this Agreement in each of
their respective capacities as Transferor and Servicer shall be deemed to be the
agreements, representations and warranties of ARSC and CMSC solely in each such
capacity for so long as ARSC and CMSC act in each such capacity under this
Agreement, PROVIDED that nothing in this paragraph shall be deemed to limit the
survival of such agreements, representations and warranties.

            (d) COMPUTATION OF TIME PERIODS. Unless otherwise stated in this
Agreement with respect to computation of a period of time from a specified date
to a later specified date, the word "from" means "from and including" and each
of the words "to" and "until" means "to but excluding".

            (e) REFERENCES TO AMOUNTS. Unless otherwise specified, references to
any amount as on deposit or outstanding on any particular date shall mean such
amount at the close of business on such day.

            (f) REFERENCE. The word "hereof", "herein" and "hereunder" and words
of similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement; and references to
"SECTION", "SUBSECTION", "APPENDIX", "SCHEDULE" and "EXHIBIT" in this Agreement
are references to Sections, subsections, Appendices, Schedules and Exhibits in
or to this Agreement unless otherwise specified in this Agreement.

                               [END OF ARTICLE I]

                                       9
<Page>

                                   ARTICLE II

                           SALE AND PURCHASE OF ASSETS

            Section 2.01 SALE AND PURCHASE.

            (a) AGREEMENT. Upon the terms hereof, the Issuer agrees to buy, and
the Transferor agrees to sell, all of the Transferor's right, title and interest
in and to the following:

                  (i) all Pool Receivables and other ARSC Purchased Assets owned
      by the Transferor on the Closing Date or thereafter purchased, or any
      other Receivables purchased under the Receivables Purchase Agreement, and
      all rights of the Transferor under the Receivables Purchase Agreement with
      respect to the ARSC Purchased Assets;

                  (ii) all Pool Collections; and

                  (iii) all proceeds of and earnings on the foregoing.

            The Pool Receivables and all other property described in the
foregoing sentence are sometimes collectively referred to herein as the
"TRANSFERRED ASSETS."

            (b) TREATMENT OF CERTAIN RECEIVABLES AND RELATED PROPERTY. It is
expressly understood that each Pool Receivable sold to the Issuer hereunder,
together with all other Transferred Assets then existing or thereafter created
and arising with respect thereto, will thereafter be the property of the Issuer
(or its assignees), without the necessity of any further purchase or other
action by the Issuer (other than satisfaction of the conditions set forth
herein).

            (c) NO RECOURSE. Except as specifically provided in this Agreement,
the sale and purchase of the Transferred Assets under this Agreement shall be
without recourse. CMSC acknowledges that its representations, warranties,
covenants and indemnities as originator pursuant to the terms of the Purchase
Agreement have been assigned to the Issuer hereunder, and CMF acknowledges that
its representations, warranties, covenants and indemnities as originator
pursuant to the terms of the Receivables Purchase Agreement have been assigned
to the Issuer hereunder.

            (d) FINANCING STATEMENTS. In connection with the transfer described
above, the Transferor agrees, at the expense of the Transferor:

                  (i) to record and file financing statements (and continuation
            statements when applicable) with respect to the Transferred Assets
            conveyed by the Transferor meeting the requirements of applicable
            law in such manner and in such jurisdictions as are necessary to
            perfect and maintain the perfection of the transfer and assignment
            of its interest in the Transferred Assets to the Issuer, and to
            deliver a file stamped copy of each such financing statement or
            other evidence of such filing to the Issuer and the Indenture
            Trustee as soon as practicable after the Closing Date.
            Notwithstanding the other provisions of this Section 2.01(d), the
            Transferor shall not, and shall not cause the Servicer to, record
            any Home Deeds or any documents evidencing the conveyance of Home
            Purchase Contracts

                                       10
<Page>

            in the applicable real estate records; PROVIDED, HOWEVER, that the
            Transferor (or the Servicer on its behalf) may record Home Deeds
            and/or Home Purchase Contracts in such manner and in the names of
            CMSC (but only with respect to CMSC Homes) or CMF, as applicable, or
            such transferees and in such capacities as the Issuer may require
            (w) upon request by the relevant Obligor to record such Home Deeds
            and/or Home Purchase Contracts, (x) upon or after the lapse of one
            year from the Possession Date under the related Home Purchase
            Contract, (y) upon the bankruptcy or insolvency of the relevant
            Obligor or (z) otherwise as required or as deemed advisable in the
            judgment of the Servicer in the best interests of the Issuer and its
            assignees; and

                  (ii) to promptly execute and deliver (or cause the Servicer or
            the related Sub-Servicer to execute and deliver) all further
            instruments and documents, and take all further action, that the
            Indenture Trustee may reasonably request in order to perfect,
            protect or more fully evidence the conveyances hereunder, or to
            enable the Indenture Trustee to exercise or enforce any of its
            rights under the Indenture.

The Servicer shall record and file financing statements, cause Home Deeds and
Home Purchase Contracts to be recorded and deliver other instruments and
documents pursuant to this Section 2.01(d) at the direction of the Transferor.

            (e) TRUE SALES. The Transferor and the Issuer intend the transfers
of Transferred Assets hereunder to be true sales by the Transferor to the Issuer
that are absolute and irrevocable and to provide the Issuer with the full
benefits of ownership of the Transferred Assets, and neither the Transferor nor
the Issuer intends the transactions contemplated hereunder to be, or for any
purpose to be characterized as, loans from the Issuer to the Transferor, secured
by the Transferred Assets.

            (f) MARKING OF RECORDS. In connection with the transfer described
herein, (i) the Transferor agrees to indicate clearly and unambiguously in its
computer files, books and records on or prior to the Closing Date that the Pool
Receivables and other Transferred Assets have been conveyed to the Issuer
pursuant to this Agreement by so marking such computer files, books and records,
and (ii) the Servicer agrees to indicate clearly and unambiguously in its
computer files, books and records on or prior to the Closing Date that the Pool
Receivables and other Transferred Assets have been conveyed to the Issuer
pursuant to this Agreement by so marking such computer files, books and records,
including the master data processing records evidencing the Transferred Assets.

            (g) ADJUSTMENTS. The Transferor shall pay to the Issuer in cash, on
the date of receipt by the Transferor, any payment received by the Transferor in
respect of Originator Adjustments made by CMSC to CMF pursuant to the Purchase
Agreement or Seller Adjustments made by CMF to the Transferor pursuant to the
Receivables Purchase Agreement. The Transferor shall instruct CMSC and CMF to
deposit all payments in respect of Originator Adjustments and Seller Adjustments
directly in the Collection Account.

                                       11
<Page>

            (h) PURCHASES. On the Closing Date, the Issuer shall purchase all of
the Transferor's right, title and interest in and to all Pool Receivables
existing at the close of business on the immediately preceding Business Day,
together with all other Transferred Assets related thereto. On each Business Day
thereafter, until the Transfer Termination Date, the Issuer shall purchase all
of the Transferor's right, title and interest in and to all Pool Receivables
existing as of the close of business on the immediately preceding Business Day
and all Transferred Assets related thereto that were not previously purchased by
the Issuer hereunder. Notwithstanding the foregoing, if an Insolvency Proceeding
is pending with respect to either the Transferor or the Issuer prior to the
Transfer Termination Date, the Transfer shall not sell, and the Issuer shall not
buy, any Transferred Assets hereunder unless and until such Insolvency
Proceeding is dismissed or otherwise terminated.

            (i) PAYMENT OF ARF PURCHASE PRICE. With respect to the Purchase of
any Transferred Assets by the Issuer from the Transferor pursuant to this
Article II, the Issuer shall pay to the Transferor an agreed purchase price (the
"ARF PURCHASE PRICE"). The ARF Purchase Price paid by the Issuer on the Closing
Date and on each subsequent Business Day on which any Transferred Assets are
purchased by the Issuer shall be paid (i) by paying such amount in cash or (ii)
by means of capital contributed by the Transferor to the Issuer in the form of a
contribution of the Transferred Assets. To the extent funds are released to it
from the Collection Account, the Issuer agrees that it will use such released
funds to the extent necessary to pay the ARF Purchase Price.

            Section 2.02 REPRESENTATIONS AND WARRANTIES OF THE TRANSFEROR. The
Transferor hereby makes the representations and warranties set forth in this
Section 2.02, in each case as of the date hereof, as of the Closing Date, as of
the date of each transfer by the Transferor of the Transferred Assets hereunder
and as of any other date specified in such representation or warranty.

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

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

            (c) POWER AND AUTHORITY: DUE AUTHORIZATION. The Transferor (i) has
all necessary corporate power and authority (A) to execute and deliver this
Agreement and the other Transaction Documents to which it is a party, (B) to
perform its obligations under this Agreement and the other Transaction Documents
to which it is a party and (C) to sell and assign

                                       12
<Page>

the Transferred Assets on the terms and subject to the conditions herein and
therein provided and (ii) has duly authorized by all necessary corporate action
such sale and assignment and the execution, delivery and performance of, and the
consummation of the transactions provided for in, this Agreement and the other
Transaction Documents to which it is a party.

            (d) VALID SALE; BINDING OBLIGATIONS. This Agreement constitutes
either a valid sale, transfer, set-over and conveyance, or the grant of a first
perfected security interest, to the Issuer of all of the Transferor's right,
title and interest in, to and under the Transferred Assets, which is perfected
and of first priority (subject to Permitted Liens and Permitted Exceptions)
under the UCC and other applicable law, enforceable against creditors of, and
purchasers from, the Transferor, free and clear of any Lien (other than
Permitted Liens); and this Agreement constitutes, and each other Transaction
Document to which the Transferor is a party when duly executed and delivered
will constitute, a legal, valid and binding obligation of the Transferor,
enforceable against the Transferor in accordance with its terms, except (i) as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and (ii) as such enforceability may be limited by
general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

            (e) NO CONFLICT OR VIOLATION. The execution, delivery and
performance of, and the consummation of the transactions contemplated by, this
Agreement and the other Transaction Documents to be signed by the Transferor,
and the fulfillment of the terms hereof and thereof, will not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time or both) a material default under (A) the
certificate of incorporation or the by-laws of the Transferor or (B) any
material indenture, loan agreement, mortgage, deed of trust or other material
agreement or instrument to which the Transferor is a party or by which it or any
of its properties is bound, (ii) result in the creation or imposition of any
Lien on any of the Transferred Assets pursuant to the terms of any such material
indenture, loan agreement, mortgage, deed of trust or other material agreement
or instrument other than this Agreement and the other Transaction Documents or
(iii) conflict with or violate any federal, state, local or foreign law or any
decision, decree, order, rule or regulation applicable to the Transferor or of
any federal, state, local or foreign regulatory body, administrative agency or
other governmental instrumentality having jurisdiction over the Transferor,
which conflict or violation described in this clause (iii), individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect
with respect to the Transferor.

            (f) LITIGATION AND OTHER PROCEEDINGS. (i) There is no action, suit,
proceeding or investigation pending, or to the best knowledge of the Transferor
threatened, against the Transferor before any court, arbitrator, regulatory
body, administrative agency or other tribunal or governmental instrumentality
and (ii) the Transferor is not subject to any order, judgment, decree,
injunction, stipulation or consent order of or with any court or other
Government Authority that, in the case of either of the foregoing clauses (i) or
(ii), (A) asserts the invalidity of this Agreement or any other Transaction
Document, (B) seeks to prevent the sale of any Transferred Asset by the
Transferor to the Issuer, the creation of a material amount of Pool Receivables
or the consummation of any of the transactions contemplated by this Agreement or

                                       13
<Page>

any other Transaction Document, (C) seeks any determination or ruling that, in
the reasonable judgment of the Transferor, would materially and adversely affect
the performance by the Transferor of its obligations under this Agreement or any
other Transaction Document to which it is a party or the validity or
enforceability of this Agreement or any other Transaction Document to which it
is a party or (D) individually or in the aggregate for all such actions, suits,
proceedings and investigations could reasonably be expected to have a Material
Adverse Effect with respect to the Transferor.

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

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

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

            (j) SOLVENCY. After giving effect to each conveyance of Transferred
Assets hereunder, the Transferor is solvent and able to pay its debts as they
come due, and has adequate capital to conduct its business as presently
conducted.

                                       14
<Page>

            (k) QUALITY OF TITLE/VALID TRANSFERS.

                  (i) Immediately before each transfer hereunder to the Issuer,
            each Transferred Asset to be sold to the Issuer shall be owned by
            the Transferor free and clear of any Lien (other than any Permitted
            Lien), and the Transferor shall have made all filings and shall have
            taken all other action under applicable law in each relevant
            jurisdiction in order to protect and perfect the ownership or
            security interest of the Issuer and its assignees in such
            Transferred Assets against all creditors of, and purchasers from,
            the Transferor (subject to Permitted Exceptions).

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

                  (iii) As of the date of transfer of a Transferred Asset to the
            Issuer, no effective financing statement or other instrument similar
            in effect that covers all or part of such Transferred Asset or any
            interest therein is on file in any recording office except such as
            may be filed (A) in favor of CMSC in accordance with the Pool
            Relocation Management Agreements, (B) in favor of CMF pursuant to
            the Purchase Agreement, (C) in favor of the Transferor pursuant to
            the Receivables Purchase Agreement, (D) in favor of the Issuer
            pursuant to this Agreement or otherwise filed by or at the direction
            of the Issuer, (E) in favor of the Indenture Trustee under the
            Indenture and (F) to evidence any Mortgage on a Home created by a
            Transferred Employee.

            (l) ACCURACY OF INFORMATION. All written information furnished by
the Transferor to the Issuer or its successors and assigns pursuant to or in
connection with any Transaction Documents or any transaction contemplated herein
or therein with respect to the Transferred Assets transferred hereunder on such
date is true and correct in all material respects on such date.

            (m) OFFICES. The principal place of business and chief executive
office of the Transferor is located, and the offices where the Servicer keeps
all Records related to the Transferred Assets (and all original documents
relating thereto) are located at the addresses specified in Schedule 2.02(m),
except that (i) Home Deeds and related documents necessary to close Home sale
transactions, including powers of attorney, may be held by local attorneys or
escrow agents acting on behalf of CMF (with respect to CMF Homes) or CMSC (with
respect to CMSC Homes) in connection with the sale of Homes to Ultimate Buyers,
so long as such local attorneys are notified of the interest of the Issuer, the
Indenture Trustee and the holders of any Notes therein and (ii) Records relating
to any Pool Relocation Management Agreement and the Transferred Assets arising
thereunder or in connection therewith may be maintained at the offices of the
related Employer.

                                       15
<Page>

            (n) INVESTMENT COMPANY ACT. The Transferor is not, and is not
controlled by, an "investment company" registered or required to be registered
under the Investment Company Act.

            (o) LEGAL NAMES. Except as otherwise set forth in Schedule 2.02(o),
since January 1, 1995, the Transferor (i) has not been known by any legal name
other than its corporate name as of the date hereof, (ii) has not been the
subject of any merger or other corporate reorganization that resulted in a
change of name, identity or corporate structure and (iii) has not used any trade
names other than its actual corporate name.

            (p) COMPLIANCE WITH APPLICABLE LAWS. The Transferor is in compliance
with the requirements of all applicable laws, rules, regulations and orders of
all governmental authorities (federal, state, local or foreign, including
without limitation Environmental Laws), a violation of any of which,
individually or in the aggregate for all such violations, is reasonably likely
to have a Material Adverse Effect with respect to the Transferor.

            (q) BUSINESS AND INDEBTEDNESS OF TRANSFEROR. The Transferor has no
Indebtedness except as contemplated by Section 4.2 of the Receivables Purchase
Agreement and under this Agreement. The Transferor has not engaged in any
business other than the Purchase of Pool Receivables and other ARSC Purchased
Assets under the Receivables Purchase Agreement and the transfer of Pool
Receivables and other Transferred Assets under this Agreement.

The representations and warranties set forth in this Section 2.02 shall survive
the transfers and assignments of the Pool Receivables and other Transferred
Assets to the Issuer and the issuance of the Notes under the Indenture. Upon
discovery by the Transferor, the Servicer or the Issuer of a breach of any of
the representations and warranties set forth in this Section 2.02, the party
discovering such breach shall give notice to the other parties within three
Business Days following such discovery, PROVIDED that the failure to give notice
within three Business Days shall not preclude subsequent notice.

            Section 2.03 REPRESENTATIONS AND WARRANTIES OF THE ISSUER. The
Issuer hereby represents and warrants, on and as of the date hereof and on and
as of the Closing Date, that (a) this Agreement has been duly authorized,
executed and delivered by the Issuer and constitutes the Issuer's valid, binding
and legally enforceable obligation, except (i) as such enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors' rights generally and (ii) as such
enforceability may be limited by general principles of equity, regardless of
whether such enforceability is considered in a proceeding in equity or at law,
(b) the execution, delivery and performance of this Agreement does not violate
any federal, state, local or foreign law applicable to the Issuer or any
agreement to which the Issuer is a party and (c) all of the membership interests
of the Issuer are directly or indirectly owned by the Transferor, and all such
membership interests are fully paid and nonassessable.

                                       16
<Page>

            Section 2.04 NO ASSUMPTION OF OBLIGATIONS RELATING TO TRANSFERRED
ASSETS; EXCESS HOME SALE PROCEEDS.

            (a) The sales and Purchases of Transferred Assets do not constitute
and are not intended to result in a creation or an assumption by the Issuer, the
Indenture Trustee or any holder of the Notes of any obligation of CMSC, CMF, the
Transferor or any other Person in connection with the Pool Receivables or the
other Transferred Assets or under the related Contracts or any other agreement
or instrument relating thereto, including without limitation any obligation to
any Obligors or Transferred Employees. None of the Issuer, the Indenture Trustee
or any holder of the Notes shall have any obligation or liability to any
Obligor, Transferred Employee or other customer or client of CMSC (including
without limitation any obligation to perform any of the obligations of CMSC or
CMF under any Relocation Management Agreement, Home Purchase Contract, Related
Property or any other agreement). Except as expressly provided in Section
3.05(j), no such obligation or liability is intended to be assumed by the
Servicer or its successors and assigns.

            (b) Notwithstanding Section 2.04(a), upon a reasonable showing by
CMSC or CMF that any Home Sale Proceeds received by the Servicer must be
returned to the related Obligor pursuant to the related Pool Relocation
Management Agreement, the Servicer shall turn over to the applicable Obligor
such Home Sale Proceeds. Each such payment pursuant to this Section 2.04(b)
shall be made pursuant to Section 4.03.

            Section 2.05 AFFIRMATIVE COVENANTS OF THE TRANSFEROR. From the
Closing Date until the termination of this Agreement in accordance with Section
10.01, the Transferor hereby agrees that it will perform the covenants and
agreements set forth in this Section 2.05.

            (a) COMPLIANCE WITH LAWS, ETC. The Transferor will comply in all
material respects with all applicable laws, rules, regulations, judgments,
decrees and orders (including without limitation those relating to the Pool
Receivables and all Environmental Laws), in each case to the extent that the
failure to comply, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect with respect to the Transferor.

            (b) PRESERVATION OF CORPORATE EXISTENCE. The Transferor (i) will
preserve and maintain its corporate existence, rights, franchises and privileges
in the jurisdiction of its incorporation and (ii) will qualify and remain
qualified in good standing as a foreign corporation in each jurisdiction in
which the failure to preserve and maintain such qualification as a foreign
corporation could reasonably be expected to have a Material Adverse Effect with
respect to the Transferor.

            (c) KEEPING OF RECORDS AND BOOKS OF ACCOUNT. The Transferor will
maintain at all times accurate and complete books, records and accounts relating
to the Transferred Assets and all Pool Collections thereon in which timely
entries will be made. The Transferor's master data processing records will be
marked to indicate the sales of all Transferred Assets hereunder.

            (d) LOCATION OF RECORDS AND OFFICES. The Transferor will keep its
principal place of business and chief executive office at the addresses
specified in Schedule 2.02(m) or, upon not less than 30 days' prior written
notice given by the Transferor to the Issuer, at such

                                       17
<Page>

other locations in jurisdictions in the United States of America where all
action required by Section 2.01(d) has been taken and completed.

            (e) SEPARATE CORPORATE EXISTENCE OF THE TRANSFEROR. The Transferor
hereby acknowledges that the parties to the Transaction Documents are entering
into the transactions contemplated by the Transaction Documents in reliance on
the Transferor's identity as a legal entity separate from CMSC and the other CMS
Persons. From and after the date hereof until one year and one day after the
Final Payout Date:

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

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

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

                  (iv) The Transferor will strictly observe corporate
      formalities in its dealings with the public and with CMSC and each other
      CMS Person, and funds or other assets of the Transferor will not be
      commingled with those of CMSC or any other CMS Person. The Transferor will
      at all times, in its dealings with the public and with CMSC and each other
      CMS Person, hold itself out and conduct itself as a legal entity separate
      and distinct from CMSC and each other CMS Person. The Transferor will not
      maintain joint bank accounts or other depository accounts to which CMSC or
      any other CMS Person (other than the Servicer) has independent access;

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

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

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

                                       18
<Page>

                  (viii) The Transferor will not hold itself out to be
      responsible for the debts of CMSC or any other CMS Person.

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

            (f) SEGREGATION OF COLLECTIONS. To the extent that any funds other
than Pool Collections are deposited into any of the Lockbox Accounts, the
Transferor promptly will identify any such funds or will cause such funds to be
so identified to the Servicer.

            (g) COMPUTER SOFTWARE, HARDWARE AND SERVICES. The Transferor will
provide the Issuer and its successors with such licenses, sublicenses and/or
assignments of contracts as the Servicer, the Issuer or its successors require
with respect to all services and computer hardware or software that relate to
the servicing of the Pool Receivables or the other Transferred Assets; PROVIDED,
HOWEVER, that with respect to any computer software licensed from a third party,
the Transferor will be required to provide such licenses, sublicenses and/or
assignments of such software only to the extent that provision of the same would
not violate the terms of any contracts of CMSC or the Transferor with such third
party.

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

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

            (j) MAINTENANCE OF PROPERTY. The Transferor will not sell, lease or
otherwise transfer, directly or indirectly, all or substantially all of the
property of the Transferor, other than any such sale, lease or transfer in the
ordinary course of business and the transfer of the Transferred Assets as
contemplated by the Transaction Documents.

            (k) PERFORMANCE OF OBLIGATIONS. The Transferor will timely and fully
perform and comply with all provisions, covenants and other promises required to
be observed by it under the Transaction Documents to which it is a party.

            (l) FILING OF TAX RETURNS AND PAYMENT OF TAXES AND OTHER
LIABILITIES. The Transferor will file (or will cause to be filed on its behalf
as a member of a consolidated group) all tax returns and reports required by law
to be filed by it and will pay all taxes, assessments and

                                       19
<Page>

governmental charges shown to be owing by it, except for any such taxes,
assessments or charges (i) that are being diligently contested in good faith by
appropriate proceedings, for which adequate reserves in accordance with GAAP
have been set aside on its books and that not have given rise to any Liens
(other than Permitted Liens) or (ii) the amount of which, either singly or in
the aggregate, would not have a Material Adverse Effect with respect to the
Transferor.

            Section 2.06 NEGATIVE COVENANTS OF THE TRANSFEROR. From the Closing
Date until the termination of this Agreement in accordance with Section 10.01,
the Transferor agrees that it will not:

            (a) CHANGES IN ACCOUNTING TREATMENT AND REPORTING PRACTICES. Change
or permit any change in accounting principles or financial reporting practices
applied to the Transferor, except in accordance with GAAP, if such change would
have a Material Adverse Effect with respect to the Transferor.

            (b) INDEBTEDNESS. Create, incur or permit to exist any Indebtedness
or other liabilities or give any guarantee or indemnity in respect of any
Indebtedness, except for (i) liabilities created or incurred by the Transferor
pursuant to the Transaction Documents to which it is a party or contemplated by
such Transaction Documents and (ii) other reasonable and customary operating
expenses;

            (c) SALES, LIENS, ETC. Sell, assign (by operation of law or
otherwise) or otherwise dispose of, or create or suffer to exist any Lien (other
than Permitted Liens) of anyone claiming by or through it on or with respect to,
any Transferred Asset or any interest therein, any Lockbox or Lockbox Account,
other than sales of Transferred Assets pursuant to this Agreement;

            (d) NO MERGERS, ETC. Consolidate with or merge with or into any
other Person or convey, transfer or sell all or substantially all of its
properties and assets to any Person;

            (e) LIMITATIONS ON AGREEMENTS. Permit the validity or effectiveness
of any Transaction Document to which it is a party or the rights and obligations
created thereby or pursuant thereto to be amended, terminated, postponed or
discharged, or permit any amendment to any Transaction Document to which it is a
party without the consent of the Issuer and the Indenture Trustee, or permit any
Person whose obligations form part of the Transferred Assets to be released from
such obligations, except in accordance with the terms of such Transaction
Document;

            (f) CHANGE IN NAME. Change its corporate name or the name under or
by which it does business or the jurisdiction in which it is incorporated unless
the Transferor has given the Issuer and its successors at least 30 days' prior
written notice thereof and unless, prior to any such change, the Transferor has
taken and completed all action required by Section 2.01(d);

            (g) CHARTER AMENDMENTS. Amend any provision of its certificate of
incorporation or by-laws unless (i) the Issuer shall have received not less than
five Business (h) Days' prior written notice thereof and (ii) the certificate of
incorporation of the Transferor, as in

                                       20
<Page>

effect on the date hereof, provides that such amendment can be made without the
vote of the Transferor's Independent Directors;

            (h) CAPITAL EXPENDITURES. Make any expenditure (by long-term or
operating lease or otherwise) for capital assets (either realty or personalty);

            (i) NO OTHER BUSINESS OR AGREEMENTS. Engage in any business other
than financing, purchasing, owning and selling and managing the Transferred
Assets in the manner contemplated by this Agreement and the other Transaction
Documents and all activities incidental thereto, or enter into or be a party to
any agreement or instrument other than any Transaction Document or documents and
agreements incidental thereto;

            (j) GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES. Except as
contemplated by this Agreement or the other Transaction Documents, incur any
Indebtedness or make any loan or advance or credit to, or guarantee (directly or
indirectly or by an instrument having the effect of assuring another's payment
or performance on any obligation or capability of so doing or otherwise),
endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase,
repurchase or acquire (or agree contingently to do so) any stock, obligations,
assets or securities of, or any other interest in, or make any capital
contribution to, any other Person;

            (k) PAYMENT INSTRUCTIONS TO OBLIGORS. Give any payment instructions
to Obligors except through the Servicer as contemplated by Section 3.05(f); or

            (l) EXTENSION OR AMENDMENT OF TRANSFERRED ASSETS. Extend, amend or
otherwise modify the terms of any Receivable included in the Transferred Assets,
or amend, modify or waive any material term or condition related thereto, except
in accordance with Section 3.10.

            (m) DIVIDEND RESTRICTIONS. Declare or pay any distributions on any
of its common stock or make any purchase redemption or other acquisition of, any
common stock if, after giving effect thereto, (i) the aggregate principal amount
outstanding under the ARSC Subordinated Note would exceed five times the net
worth of the Transferor or (ii) the net worth of the Transferor would be less
than $40,000,000.

                               [END OF ARTICLE II]

                                       21
<Page>

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                                 OF RECEIVABLES

            Section 3.01 ACCEPTANCE OF APPOINTMENT AND OTHER MATTERS RELATING TO
THE SERVICER.

            (a) The servicing, administration and collection of the Pool
Receivables and the other Transferred Assets shall be conducted by the Person
designated as the Servicer hereunder from time to time in accordance with this
Section 3.01. Until the Indenture Trustee gives a Termination Notice to CMSC
pursuant to Section 9.01, CMSC is hereby designated, and CMSC hereby agrees to
act, as the Servicer under this Agreement and the other Transaction Documents
with respect to the Pool Receivables and the other Transferred Assets, and each
of CMSC, CMF, the Transferor, and the Issuer consents to CMSC acting as the
Servicer.

            (b) In the ordinary course of business, the Servicer, with prior
written notice to the Indenture Trustee, may at any time delegate part or all of
its duties hereunder with respect to the Receivables and the other Transferred
Assets to any Affiliates of PHH that agree to conduct such duties in accordance
with the Credit and Collection Policy and this Agreement. Each such Subsidiary
to whom any such duties are delegated in accordance with this Section 3.01(b) is
referred to herein as a "SUB-SERVICER." Notwithstanding any such delegation by
the Servicer, the Servicer shall remain liable for the performance of all duties
and obligations of the Servicer pursuant to the terms of this Agreement and the
other Transaction Documents, and such delegation shall not relieve the Servicer
of its liability and responsibility with respect to such duties. The fees and
expenses of any such Sub-Servicers shall be as agreed between the Servicer and
such Sub-Servicers from time to time, and none of the Issuer, the Indenture
Trustee or the holders of any Notes issued by the Issuer under the Indenture
shall have any responsibility therefor. Upon any termination of a Servicer
pursuant to Section 9.01, all Sub-Servicers designated pursuant to this Section
3.01(b) by such Servicer also shall be automatically terminated.

            (c) The designation of the Servicer (and each Sub-Servicer) under
this Agreement (and, in the case of any Sub-Servicer, under the agreement or
other document pursuant to which the Servicer makes a delegation of servicing
duties to such Sub-Servicer) shall automatically cease and terminate on the
Final Payout Date.

            Section 3.02 DUTIES OF THE SERVICER AND THE ISSUER.

            (a) Each of CMSC, CMF, the Transferor, the Issuer and the 1Indenture
Trustee hereby appoints the Servicer from time to time designated pursuant to
Section 3.01(a) as Servicer hereunder to take all actions authorized below or
elsewhere in this Agreement and to enforce its respective rights and interests
in and under the Pool Receivables and the other Transferred Assets.

                                       22
<Page>

            (b) As Servicer hereunder, the Servicer shall service and administer
the Pool Receivables and the other Transferred Assets, shall collect and deposit
into the Collection Account payments due under the Pool Receivables and shall
charge-off as uncollectible Pool Receivables, all in accordance with its
customary and usual servicing procedures and the Credit and Collection Policy.
As Servicer hereunder, the Servicer shall have full power and authority, acting
alone or through any party properly designated by it hereunder, to do any and
all things it may deem necessary or appropriate in connection with such
servicing and administration. CMSC, CMF, the Issuer, the Transferor and the
Indenture Trustee shall furnish the Servicer with any documents necessary or
appropriate to enable the Servicer to carry out its servicing and administrative
duties hereunder. The Servicer shall exercise the same care and apply the same
policies with respect to the collection, administration and servicing of the
Pool Receivables and other Transferred Assets that it would exercise and apply
if it owned such Pool Receivables and other Transferred Assets, all in
substantial compliance with applicable law and in accordance with the Credit and
Collection Policy. The Servicer shall take or cause to be taken all such actions
as it deems necessary or appropriate to collect each Pool Receivable and other
Transferred Asset (and shall cause each Sub-Servicer, if any, to take or cause
to be taken all such actions as the Servicer deems necessary or appropriate to
collect each Pool Receivable and other Transferred Asset for which such
Sub-Servicer is responsible in its capacity as Sub-Servicer) from time to time,
all in accordance with applicable law and in accordance with the Credit and
Collection Policy.

            (c) Without limiting the generality of the foregoing and subject to
Section 3.02(e) and Section 9.01, each of CMSC, CMF, the Transferor, the Issuer
and the Indenture Trustee hereby authorizes and empowers the Servicer or its
designee as follows, except to the extent any such power and authority is
revoked or limited by the Indenture Trustee on account of the occurrence of an
Unmatured Servicer Default or a Servicer Default or otherwise pursuant to
Section 9.01:

            (i) to give instructions to the Indenture Trustee for withdrawals
      and payments from the Collection Account and to take any other action
      necessary or appropriate to service the Pledged Assets as set forth in the
      Indenture,

            (ii) to enter into Home Sale Contracts and all related documents,
      instruments and agreements on behalf of CMSC (with respect to CMSC Homes)
      and on behalf of CMF (with respect to CMF Homes) and to take all necessary
      actions, including with respect to the maintenance and marketing of the
      related Homes, to carry out the terms of such Home Sale Contracts and
      related agreements; PROVIDED, HOWEVER, that the Servicer shall not be a
      party to any Home Sale Contract or any other document, instrument, or
      agreement relating to the sale by CMF of a Home, unless it is expressly
      disclosed on the face of such document, instrument, or agreement that the
      Servicer is acting as Servicer for CMF,

            (iii) to execute and deliver any and all instruments of satisfaction
      or cancellation, or of partial or full release or discharge, and all other
      comparable instruments, with respect to the Pool Receivables and the other
      Transferred Assets on the Issuer's behalf,

                                       23
<Page>

            (iv) after the delinquency of any Pool Receivable or any default in
      connection with any other Transferred Asset and to the extent permitted
      under and in compliance with the Credit and Collection Policy and with all
      applicable laws, rules, regulations, judgments, orders and decrees of
      courts and other Governmental Authorities and all other tribunals, to
      commence or settle collection proceedings with respect to such Pool
      Receivable or other Transferred Asset and otherwise to enforce the rights
      and interests of the Issuer in, to and under such Pool Receivable or other
      Transferred Asset (as applicable), unless the Indenture Trustee otherwise
      revokes such authority in writing,

            (v) to make all filings and take all other actions necessary for the
      Issuer to maintain a perfected security and/or ownership interest in the
      Pool Receivables (subject to Permitted Exceptions) have been taken or
      made,

            (vi) to determine on each Business Day whether any funds in the
      Lockbox Accounts represent collections on CMSC Noncomplying Assets or CMF
      Noncomplying Assets and to promptly return such funds to CMSC or CMF, as
      applicable, and

            (vii) to determine on each day whether each CMF Receivable being
      conveyed to ARSC on such day is an Eligible Receivable and to identify on
      such day all CMF Receivables sold to ARSC on such date that are not
      Eligible Receivables.

PROVIDED, HOWEVER, that:

                  (A) following the appointment of a Servicer other than CMSC,
            or when a Servicer Default has occurred and is continuing, the
            Indenture Trustee on behalf of the Issuer shall have the absolute
            and unlimited right to direct the Servicer to commence or settle any
            legal action to enforce collection of, or otherwise exercise rights
            with respect to, any Pool Receivable transferred to the Issuer or to
            foreclose upon or repossess or otherwise exercise rights with
            respect to, any other Transferred Assets transferred to the Issuer,
            and

                  (B) the Servicer shall not, under any circumstances, be
            entitled to make the Issuer or any assignee thereof a party to any
            litigation without the prior written consent of the Issuer or such
            assignee, as applicable.

            (d) The Servicer shall pay out of its own funds, without
reimbursement, all expenses incurred in connection with its servicing activities
hereunder, including expenses related to enforcement of the Pool Receivables,
fees and disbursements of its outside counsel and independent accountants and
all other fees and expenses, including the costs of filing UCC continuation
statements.

            (e) In addition to its other obligations provided for hereunder, the
Servicer shall hold and maintain all Records in trust, for the benefit of the
Issuer, the Indenture Trustee and the holders of the Notes, which Records shall
be held separate and apart from the other property of the Servicer and
maintained in files marked to show that such Records have been pledged to the
Indenture Trustee pursuant to the Indenture; PROVIDED, HOWEVER, that the
Servicer shall be entitled (i) to release any Equity Loan Notes that have been,
or concurrent with such

                                       24
<Page>

release will be, repaid, satisfied or otherwise cancelled and (ii) to release
any Home Purchase Contracts and Home Deeds for Homes with respect to which a
Home Sale Contract has been executed in order to facilitate the prompt closing
thereof, including without limitation by delivery of such documents to escrow
agents (with a notice to such escrow agents of the interest of the Issuer and
the Indenture Trustee therein).

            Section 3.03 SERVICING COMPENSATION. The Issuer hereby agrees to pay
to the Servicer, as full compensation for its servicing activities hereunder and
under the other Transaction Documents and as reimbursement for any expense
incurred by it in connection therewith, a servicing fee (the "SERVICING FEE")
with respect to each Monthly Period, payable in arrears on the related
Distribution Date, in an amount equal to the PRODUCT of 0.75% MULTIPLIED BY the
weighted average over such Monthly Period of the daily sums of the Aggregate
Employer Balances for each Employer under the Pool Relocation Management
Agreements, subject to adjustment at the direction of the Indenture Trustee
(upon satisfaction of the Rating Agency Condition) to provide additional
servicing compensation to any Successor Servicer if necessary to reflect
then-current market rates for servicing of comparable receivables at any time
that CMSC is replaced as Servicer hereunder. The share of the Servicing Fee
allocable to the holders of the Notes issued from time to time by the Issuer
under the Indenture with respect to any Monthly Period shall be set forth in the
Indenture. The Servicing Fee shall be payable solely out of Pool Collections
available for such purpose pursuant to, and subject to the priority of payments
set forth in, the Indenture. Notwithstanding the preceding sentence, the portion
of the Servicing Fee with respect to any Monthly Period not payable out of the
Pool Collections allocated to the holders of the Notes shall be payable out of
the Pool Collections allocable to the Issuer on the related Distribution Date as
set forth in the Indenture or by the Issuer, and in no event shall the holders
of the Notes be liable for the share of the Servicing Fee with respect to any
Payment Period to be payable out of the Pool Collections allocable to the Issuer
or by the Issuer. The Servicer shall pay the fees and expenses of, and agrees to
indemnify the Indenture Trustee, the Paying Agent, the Authentication Agent and
the Transfer Agent and Registrar out of the Servicing Fee in accordance with the
terms of the Indenture.

            Section 3.04 REPRESENTATIONS AND WARRANTIES OF THE SERVICER. CMSC,
as initial Servicer, hereby makes, and any Successor Servicer by its appointment
hereunder shall make with respect to itself, on the Closing Date (and on the
date of any such appointment), on the date of each issuance of Notes by the
Issuer and on the date of any increases in Outstanding Amount of any Series of
Notes, the following representations, warranties and covenants, on which the
Issuer, the Transferor, CMSC and CMF shall be deemed to have relied:

            (a) ORGANIZATION AND GOOD STANDING. The Servicer is a corporation
duly organized and validly existing in good standing under the laws of the State
of its incorporation and has full power and authority to own its properties and
to conduct its business as such properties are presently owned and such business
is presently conducted.

            (b) DUE QUALIFICATION. The Servicer is duly qualified to do
business, is in good standing as a foreign corporation, and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business requires such qualification,
licenses or approvals and in which the failure so to qualify or to obtain such
licenses and approvals or to preserve and maintain such qualification, licenses
or

                                       25
<Page>

approvals could reasonably be expected to give rise to a Material Adverse Effect
with respect to the Servicer.

            (c) POWER AND AUTHORITY; DUE AUTHORIZATION. The Servicer (i) has all
necessary corporate power and authority (A) to execute and deliver this
Agreement and the other Transaction Documents to which it is a party and (B) to
perform its obligations under this Agreement and the other Transaction Documents
to which it is a party and (ii) has duly authorized by all necessary corporate
action the execution, delivery and performance of, and the consummation of the
transactions provided for in, this Agreement and the other Transaction Documents
to which it is a party.

            (d) BINDING OBLIGATIONS. This Agreement constitutes, and each other
Transaction Document to which the Servicer is a party when duly executed and
delivered will constitute, a legal, valid and binding obligation of the
Servicer, enforceable against the Servicer in accordance with its terms, except
(i) as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and (ii) as such enforceability may be limited by
general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

            (e) NO CONFLICT OR VIOLATION. The execution, delivery and
performance of, and the consummation of the transactions contemplated by, this
Agreement and the other Transaction Documents to which the Servicer is a party,
and the fulfillment of the terms hereof and thereof, will not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time or both) a material default under (A) the
certificate of incorporation or the by-laws of the Servicer or (B) any material
indenture, loan agreement, mortgage, deed of trust or other material agreement
or instrument to which the Servicer is a party or by which it or any of its
respective properties is bound, (ii) result in the creation or imposition of any
Lien on any of the Transferred Assets pursuant to the terms of any such material
indenture, loan agreement, mortgage, deed of trust or other material agreement
or instrument, other than this Agreement and the other Transaction Documents to
which the Servicer is a party or (iii) conflict with or violate any federal,
state, local or foreign law or any decision, decree, order, rule or regulation
applicable to the Servicer or of any federal, state, local or foreign regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Servicer, which conflict or violation described in this
clause (iii), individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect with respect to the Servicer.

            (f) LITIGATION AND OTHER PROCEEDINGS. (i) There is no action, suit,
proceeding or investigation pending, or to the best knowledge of the Servicer
threatened, against the Servicer before any court, regulatory body,
administrative agency or other tribunal or governmental instrumentality and (ii)
the Servicer is not subject to any order, judgment, decree, injunction,
stipulation or consent order of or with any court or other Governmental
Authority that, in the case of either of the foregoing clauses (i) and (ii), (A)
asserts the invalidity of this Agreement or any other Transaction Document to
which the Servicer is a party, (B) seeks any determination or ruling that, in
the reasonable judgment of the Servicer, would materially and adversely affect
the

                                       26
<Page>

performance by the Servicer of its obligations under this Agreement or any other
Transaction Document to which the Servicer is a party or the validity or
enforceability of this Agreement or any other Transaction Document to which the
Servicer is a party or (C) individually or in the aggregate for all such
actions, suits, proceedings and investigations could reasonably be expected to
have a Material Adverse Effect with respect to the Servicer.

            (g) GOVERNMENTAL APPROVALS. Except where the failure to obtain or
make such authorization, consent, order, approval or action could not reasonably
be expected to have a Material Adverse Effect with respect to the Servicer, all
authorizations, consents, orders and approvals of, or other actions by, any
Governmental Authority that are required to be obtained by the Servicer in
connection with the due execution, delivery and performance by the Servicer of
this Agreement or any other Transaction Document to which it is a party and the
consummation of the transactions contemplated by this Agreement have been
obtained or made and are in full force and effect; PROVIDED, HOWEVER, that prior
to recordation pursuant to Section 2.01(d)(i) or upon the sale of a Home to an
Ultimate Buyer, record title to such Home may remain in the name of the related
Transferred Employee and no recordation in real estate records of the conveyance
of the related Home Purchase Contract or Home Sale Contract shall be made except
as otherwise required under Section 2.01(d)(i).

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

            (i) ACCURACY OF INFORMATION. All written information furnished by
the Servicer to CMSC, CMF or the Issuer pursuant to or in connection with any
Transaction Document or any transaction contemplated herein or therein with
respect to the Servicer is true and correct in all material respects on such
date.

            (j) OFFICES. The principal place of business and chief executive
office of the Servicer is located at the address specified in Schedule 2.02(m).

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

            (l) LOCKBOX BANKS. The names and addresses of all Lockbox Banks,
together with the account numbers of the Lockbox Accounts at such Lockbox Banks
into which the Pool Collections are paid, are accurately set forth in Schedule
3.04(l). Each Lockbox and each

                                       27
<Page>

Lockbox Account is subject to a Lockbox Agreement duly executed and delivered by
the parties thereto.

            Section 3.05 AFFIRMATIVE COVENANTS OF SERVICER. As long as it is the
Servicer hereunder, the Servicer hereby agrees that it will perform the
covenants and agreements set forth in this Section 3.05.

            (a) COMPLIANCE WITH LAWS, ETC. The Servicer will comply in all
material respects with all applicable laws, rules, regulations, judgments,
decrees and orders (including without limitation those relating to the Pool
Receivables, Home Purchase Contracts and Related Assets and all Environmental
Laws), in each case to the extent that the failure to comply, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect
with respect to the Servicer.

            (b) PRESERVATION OF CORPORATE EXISTENCE. The Servicer (i) will
preserve and maintain its corporate existence, rights, franchises and privileges
in the jurisdiction of its incorporation, other than any change in corporate
status by reason of a merger or consolidation permitted by Section 7.02 and (ii)
will qualify and remain qualified in good standing as a foreign corporation in
each jurisdiction in which the failure to preserve and maintain such
qualification as a foreign corporation could reasonably be expected to have a
Material Adverse Effect with respect to the Servicer.

            (c) KEEPING OF RECORDS AND BOOKS OF ACCOUNT. The Servicer will
maintain and implement administrative and operating procedures (including
without limitation an ability to recreate records evidencing the Transferred
Assets in the event of the destruction of the originals thereof), and will keep
and maintain all documents, books, records and other information that are
necessary or advisable, in the reasonable determination of CMSC, CMF, the
Transferor, the Issuer or the Indenture Trustee, for the collection of all
amounts due under any or all Transferred Assets. Upon the reasonable request of
the Issuer or the Indenture Trustee made at any time after the occurrence and
continuance of a Servicer Default, the Servicer will deliver copies of all
Records in its possession or under its control to the Issuer or its designee.
The Servicer will maintain at all times accurate and complete books, records and
accounts relating to the Transferred Assets and all Pool Collections thereon in
which timely entries will be made.

            (d) LOCATION OF RECORDS AND OFFICES. The Servicer will keep its
principal place of business and chief executive office at the address specified
in Schedule 2.02(m) or, upon not less than 30 days' prior written notice given
by the Servicer to the Transferor, the Issuer and the Indenture Trustee, at
other locations in jurisdictions in the United States.

            (e) SEPARATE CORPORATE EXISTENCE OF THE TRANSFEROR. The Servicer
hereby acknowledges that the parties to the Transaction Documents are entering
into the transactions contemplated by the Transaction Documents in reliance upon
the Transferor's identity as a legal entity separate from the Servicer. As long
as it is the Servicer hereunder, the Servicer will take such actions as shall be
required in order that:

                  (i) The Transferor's operating expenses will not be paid by
      the Servicer, except that certain organizational expenses of the
      Transferor and the Issuer and

                                       28
<Page>

      expenses relating to creation and initial implementation of the
      Transaction Documents have been or will be paid by CMSC;

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

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

                  (iv) The Servicer will not be, or will not hold itself out to
      be, responsible for the debts of the Transferor.

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

            (g) SEGREGATION OF COLLECTIONS. The Servicer will use reasonable
efforts to minimize the deposit of any funds other than Pool Collections into
any of the Lockbox Accounts and, to the extent that any such funds nevertheless
are deposited into any of such Lockbox Accounts, will promptly identify any such
funds.

            (h) COMPUTER SOFTWARE, HARDWARE AND SERVICES. The Servicer will
provide the Issuer with such licenses, sublicenses and/or assignments of
contracts as the Issuer requires with regard to all services and computer
hardware or software that relate to the servicing of the Pool Receivables or the
other Transferred Assets; PROVIDED, HOWEVER, that with respect to any computer
software licensed from a third party, the Servicer will be required to provide
such licenses, sublicenses and/or assignments of such software only to the
extent that provision of the same would not violate the terms of any contracts
of the Servicer with such third party.

                                       29
<Page>

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

            (j) PERFORMANCE OF OBLIGATIONS. The Servicer will, at its expense,
market the CMSC Homes and CMF Homes and pay the related expenses of such
marketing and of the sale of CMSC Homes and CMF Homes to Ultimate Buyers in
accordance with the practices of CMSC in effect on the Closing Date (as such
practices have been modified either (x) in the ordinary course of CMSC's
business or (y) with the prior written consent of the Issuer).

            (k) BILLING OF RECEIVABLES. The Servicer will bill all Receivables
(i) in the case of Receivables with respect to a Home purchased under a Home
Purchase Contract, within 60 days (on average) of the sale of the related Home
to an Ultimate Buyer and (ii) in the case of all other Receivables, within 60
days (on average) after the Receivable arises.

            (l) FILING OF TAX RETURNS AND PAYMENT OF TAXES AND OTHER
LIABILITIES. The Servicer will file (or will cause to be filed on its behalf as
a member of a consolidated group) all tax returns and reports required by law to
be filed by it and will pay all taxes, assessments and governmental charges
shown to be owing by it, except for any such taxes, assessments or charges (i)
that are being diligently contested in good faith by appropriate proceedings,
for which adequate reserves in accordance with GAAP shall have been set aside on
its books and that shall not have given rise to any Liens (other than Permitted
Liens) or (ii) the amount of which, either singly or in the aggregate, shall not
have a Material Adverse Effect with respect to the Servicer.

            Section 3.06 NEGATIVE COVENANTS OF SERVICER. As long as it is the
Servicer hereunder, the Servicer hereby covenants that the Servicer shall not:

            (a) CHANGES IN ACCOUNTING TREATMENT AND REPORTING PRACTICES. Change
      or permit any change in any accounting principles or financial reporting
      practices applied to the Servicer, except in accordance with GAAP, if such
      change would have a Material Adverse Effect with respect to the Servicer;

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

            (c) CHANGE IN NAME. Change its corporate name or the name under or
      by which it does business unless the Servicer has given CMSC, CMF, the
      Transferor, the Issuer and the Issuer's successors and assigns at least 30
      days' prior written notice thereof;

                                       30
<Page>

            (d) CHANGE IN PAYMENT INSTRUCTION TO OBLIGORS. Make any change in
      the instructions to Obligors or other Persons regarding payments to be
      made to it or payments to be made to any Lockbox Account, which payments
      relate to the Transferred Assets, unless the Servicer has given the Issuer
      and its successors and assigns prior written notice thereof, and then only
      in compliance with Section 3.05(f) or add or terminate any bank as a
      Lockbox Bank from those listed in Schedule 3.04(l) unless (i) the
      Indenture Trustee has received copies of a Lockbox Agreement with each new
      Lockbox Bank duly executed by the parties thereto and (ii) in the case of
      any termination, the Issuer or its successors and assigns have received
      evidence to their satisfaction that the Obligors that were making payments
      into a terminated Lockbox Account have been instructed in writing to make
      payments into another Lockbox Account then in use;

            (e) HOME DEEDS. Record any Home Deeds except as permitted by Section
      2.01(d)(i);

            (f) ESTABLISHMENT OF LOCKBOX ACCOUNTS. Enter into a Lockbox
      Agreement (other than as set forth in Exhibit B) without the prior written
      consent of the Issuer and the Indenture Trustee; or

            (g) INSTRUCTIONS TO INDENTURE TRUSTEE. Instruct the Indenture
      Trustee to release any Collections to the Issuer pursuant to Section 8.07
      of the Indenture on any day on which an Asset Deficiency exists.

            Section 3.07 RECORDS OF THE SERVICER AND REPORTS TO BE PREPARED BY
THE SERVICER.

            (a) The Servicer shall maintain at all times accurate and complete
books, records and accounts relating to the Pool Receivables, the other
Transferred Assets and the Pool Relocation Management Agreements and all Pool
Collections thereon, in which timely entries shall be made. The Servicer shall
maintain and implement administrative and operating procedures (including
without limitation an ability to recreate Records evidencing Pool Receivables
and the other Transferred Assets in the event of the destruction of the
originals thereof), and shall keep and maintain all documents, books, records
and other information that the Servicer deems reasonably necessary for the
identification of Eligible Receivables and for the collection of all Pool
Receivables and other Transferred Assets. Upon the reasonable request of the
Indenture Trustee or the Issuer after the occurrence and continuance of an
Unmatured Servicer Default or a Servicer Default or other termination under
Section 9.01, the Servicer will deliver copies of all books and records
maintained pursuant to this Section 3.07(a) to the Indenture Trustee.

            (b) During regular business hours upon reasonable prior notice, the
Servicer shall permit CMSC, CMF, the Issuer, the Transferor, the Indenture
Trustee (or such other Person whom the Indenture Trustee or the Issuer may
designate from time to time), or their agents or representatives (including
without limitation certified public accountants or other auditors), at the
expense of the Servicer and to the extent reasonably necessary to protect the
interests of the holders of the Notes, (i) to examine and make copies of and
abstracts from, and to conduct accounting reviews of, all Records in the
possession or under the control of the Servicer,

                                       31
<Page>

including without limitation the related Contracts, invoices and other documents
related thereto, and (ii) to visit the offices and properties of the Servicer
for the purpose of examining the materials described in clause (i) above, and to
discuss matters relating to the Pool Receivables or the other Transferred Assets
or the performance by the Servicer of its obligations under any Transaction
Document to which it is a party with any Authorized Officer of the Servicer
having knowledge of such matters and with its certified public accountants or
other auditors. The Indenture Trustee may conduct, or cause its agents or
representatives to conduct, reviews of the types described in this Section
3.07(b) whenever the Indenture Trustee reasonably deems any such review
appropriate, and the Indenture Trustee shall conduct, or cause its agents or
representatives to conduct, such a review if requested by the Issuer.

            (c) No later than four Business Days prior to the Distribution Date
with respect to any Outstanding Series, the Servicer shall prepare and deliver
to CMSC, CMF, the Transferor, the Issuer, the Indenture Trustee, each Rating
Agency and each Series Enhancer a report with respect to the Monthly Period then
most recently ended and such Outstanding Series of Notes, substantially in the
form provided in the related Supplement or in such other form as is reasonably
acceptable to the Issuer (each such report, a "RECEIVABLES ACTIVITY REPORT").
Such Receivables Activity Report shall include (i) a certification that, to the
best of the Servicer's knowledge, no Unmatured Servicer Default or Servicer
Default has occurred and is continuing and (ii) a listing of all new Pool
Relocation Management Agreements as identified pursuant to Section 2.1(a) of the
Purchase Agreement.

            Section 3.08 ANNUAL CERTIFICATE OF SERVICER. The Servicer shall
deliver to CMSC, CMF, the Issuer, the Indenture Trustee, each Rating Agency and
any Series Enhancer on or before April 30 of each calendar year, beginning with
April 30, 2001, an Officer's Certificate substantially in the form of Exhibit A.

            Section 3.09 ANNUAL SERVICING REPORT OF INDEPENDENT PUBLIC
ACCOUNTANTS; COPIES OF REPORTS AVAILABLE. On or before April 30 of each calendar
year, beginning with April 30, 2001, the Servicer shall cause a firm of
nationally recognized independent public accountants (who also may render other
services to the Servicer, the Issuer, CMSC, CMF or the Transferor) to furnish a
report (addressed to the Issuer and any Series Enhancer) to CMSC, CMF, the
Issuer, the Transferor, the Indenture Trustee and any Series Enhancer to the
effect that they have applied certain procedures agreed upon with the Servicer
and substantially in the form previously provided to the Rating Agencies and
examined certain documents and records relating to the servicing of the
Receivables and other Transferred Assets under this Agreement and that, on the
basis of such agreed-upon procedures, nothing has come to the attention of such
accountants that caused them to believe that the servicing (including the
allocation of Pool Collections) has not been conducted in compliance with the
terms and conditions as set forth in Articles III and IV of this Agreement,
other than such exceptions as they believe to be immaterial and such other
exceptions as shall be set forth in such statement. Such report shall set forth
the agreed-upon procedures performed.

            Section 3.10 ADJUSTMENTS; MODIFICATIONS.

            (a) If on any day the Unpaid Balance of any Pool Receivable is
reduced by the Servicer as a result of any incorrect billings, allowances,
chargebacks, credits or any other

                                       32
<Page>

reductions or cancellations, in each case that result from the acts or omissions
of the Servicer, that are unrelated to the ability of the related Obligor to pay
such Pool Receivable (each such reduction, a "SERVICER DILUTION ADJUSTMENT"),
then the Servicer shall deposit the amount of such Servicer Dilution Adjustment
in cash in the Collection Account and shall report such amount on the next
Receivables Activity Report.

            (b) So long as no Unmatured Servicer Default or Servicer Default
shall have occurred and be continuing, the Servicer may adjust, and may permit
each Sub-Servicer appointed by it pursuant to Section 3.01(b) to adjust, the
outstanding unpaid balance of any Pool Receivable in accordance with the Credit
and Collection Policy and the terms of this Agreement, PROVIDED that (i) such
adjustment would not cause or result in an Eligible Receivable becoming
ineligible and (ii) either the Servicer makes the related Servicer Dilution
Adjustment payment pursuant to this Section 3.10 or CMSC or CMF makes the
related Originator Adjustment payment pursuant to Section 4.3(b) of the Purchase
Agreement or Section 4.3(b) of the Receivables Purchase Agreement, as
applicable. The Servicer shall, or shall cause the applicable Sub-Servicer to,
write off Pool Receivables from time to time in accordance with the terms of
this Agreement and the terms of the Credit and Collection Policy, and such a
write-off shall not give rise to any obligation to make a Servicer Dilution
Adjustment. Notwithstanding the foregoing, the maturity date of an Equity Loan
may be extended beyond the original due date in accordance with the Credit and
Collection Policy, and such Equity Loan shall, notwithstanding clause (j) of the
definition of Eligible Receivable, be an Eligible Receivable so long as (i) such
extension was made for reasons unrelated to the creditworthiness of the Obligor,
(ii) the extension period ends not later than (A) the time of sale or (B) the
expiration of the offering period for the Homeowner's acceptance of an offer for
sale or (C) the date that is 12 months prior to the Final Stated Maturity Date,
whichever first occurs, and (iii) all other requirements for such Receivable to
be an Eligible Receivable are satisfied.

            (c) If (i) the Servicer makes a deposit into the Collection Account
in respect of a Collection of a Pool Receivable and such Collection was received
by the Servicer in the form of a check that is not honored for any reason or
(ii) the Servicer makes an error with respect to the amount of any Collection
and deposits an amount that is less than or more than the actual amount of such
Collection, the Servicer shall appropriately adjust the amount subsequently
deposited into the Collection Account to reflect such dishonored check or error.
Any Pool Receivable in respect of which a dishonored check is received shall be
deemed not to have been paid. Notwithstanding the first two sentences of this
paragraph, adjustments made pursuant to this Section 3.10(c) shall not require
any change in any report previously delivered pursuant to Section 3.07(c).

            (d) The Servicer shall not extend, amend or otherwise modify the
terms of any Pool Receivable, or amend, modify or waive any material term or
condition related thereto, except as provided in this Section 3.10.

            Section 3.11. ESCROW AGENTS. The Servicer shall cause all Home
Purchase Contracts and Home Deeds to be delivered to an escrow agent in the
applicable jurisdiction, with a notice to such agent of the interests of the
Issuer and Indenture Trustee therein.

                                       33
<Page>

            Section 3.12. SERVICER ADVANCES.

            (a) In accordance with the Credit and Collection Policy, the
Servicer shall make Servicer Advances in connection with the maintenance and
marketing of Homes the Receivables relating to which are included in the
Transferred Assets, but only to the extent that the Servicer has determined in
its reasonable judgment that such advances will be recoverable out of
Collections on the Receivable arising as a result of such Servicer Advance.

            (b) All Servicer Advances, the Receivables arising from which have
not been sold to CMF under the Purchase Agreement, shall be reimbursable in the
first instance from Pool Collections relating to the Homes with respect to which
such Servicer Advances were made (PROVIDED that Home Sale Proceeds will only be
applied to reimburse Servicer Advances consistent with CMSC's practices as of
the Closing Date) and, further, to the extent such Servicer Advance has been
determined to be a Nonrecoverable Advance, as provided in Section 4.03 of this
Agreement and Section 8.04(c)(i) of the Indenture. In consideration of the
Issuer's obligation to reimburse the Servicer from Collections for Servicer
Advances, the Receivables arising under the Pool Relocation Management
Agreements in respect of such Servicer Advances which have not been sold to CMF
under the Purchase Agreement shall be automatically conveyed by the Servicer to
the Issuer and included in the Pool Receivables and the Transferred Assets.

            Section 3.13. CALCULATIONS. Without limiting the generality of the
foregoing provisions of this Article III, the Servicer shall perform all
calculations necessary in order to determine payments to be made to holders of
Notes and deposits to be made to reserves and other Series Accounts in
accordance with the Indenture and any Supplement. For the purposes of such
calculations, on each Business Day the Servicer shall calculate the Aggregate
Employer Balance for each Employer by determining the aggregate Unpaid Balance
of the Pool Receivables due from such Employer and then reducing such amount
(without duplication) by the amounts described in the definition of Aggregate
Employer Balance, including the total amount of Advance Payments received from
such Employer, regardless of whether such Advance Payment is related to a Pool
Receivable.

            Section 3.14. APPLICATION OF COLLECTIONS. (a) In accordance with the
Credit and Collection Policy, the Servicer shall apply all monies received by or
on behalf of any Employer in accordance with the directions of such Employer.
The Servicer shall contact the Employer if necessary to obtain such directions,
or if such directions cannot be obtained, the Servicer shall apply Pool
Collections of such Employer in the order that such Pool Receivables were
originated, with the oldest Pool Receivable being paid first. The Servicer shall
allocate any collections received under a single Billed Receivable that contains
both Receivables included in the Transferred Assets and other amounts owed to
CMSC first, to amounts owed in respect of Transferred Assets and then to other
receivables.

                                       34
<Page>

            (b) If at any time the Servicer shall determine that any amount on
deposit in the Collection Account does not constitute Pool Collections or the
proceeds thereof, the Servicer shall instruct the Indenture Trustee to withdraw
such amounts from the Collection Account and to pay such amounts to the Person
that the Servicer determines is the Person entitled thereto, as provided in
Section 8.04 of the Indenture.

                              [END OF ARTICLE III]

                                       35
<Page>

                                   ARTICLE IV

                          ACCOUNTS AND POOL COLLECTIONS

            Section 4.01 ESTABLISHMENT OF COLLECTION ACCOUNT. The Servicer, for
the benefit of the Indenture Trustee and the holders of the Notes, shall
establish and maintain an Eligible Account (including any subaccount thereof) in
the name of the Indenture Trustee, bearing a designation clearly indicating that
the funds and other property credited thereto are held for the benefit of the
Indenture Trustee and the holders of the Notes (the "COLLECTION ACCOUNT").

            The Collection Account shall be under the sole dominion and control
of the Indenture Trustee for the benefit of the holders of the Notes. Except as
expressly provided in this Agreement or the Indenture, the Servicer agrees that
it shall have no right of setoff or banker's lien against, and no right to
otherwise deduct from, any funds held in the Collection Account for any amount
owed to it by the Issuer, CMSC, CMF, the Indenture Trustee or any holder of the
Notes. If the Collection Account at any time ceases to be an Eligible Account
then, within 10 Business Days of the Issuer's or Servicer's knowledge thereof,
the Issuer or the Servicer shall establish a new Collection Account meeting the
conditions specified above, transfer any monies, documents, instruments,
investment property, certificates of deposit and other property to such new
Collection Account and from the date such new Collection Account is established,
it shall be the Collection Account. Pursuant to the authority granted to the
Servicer in Section 3.02, the Servicer shall have the power, revocable by the
Indenture Trustee, to instruct the Indenture Trustee to make withdrawals and
payments from the Collection Account for the purposes of carrying out the
Servicer's duties hereunder.

            At the written direction of the Servicer, funds on deposit in the
Collection Account shall be invested in Eligible Investments selected by the
Servicer. All such Eligible Investments shall be held by the Indenture Trustee
for the benefit of the holders of the Notes. Investments of funds representing
Pool Collections collected during any Monthly Period shall be invested in
Eligible Investments that will mature so that such funds will be available no
later than the close of business on the day preceding the monthly Distribution
Date following such Monthly Period, in amounts sufficient to the extent of such
funds to make the required distributions on such Distribution Date. On each
Distribution Date, all interest and other investment earnings (net of losses and
investment expenses) on funds on deposit in the Collection Account shall be paid
to the Servicer as additional servicing compensation. The Servicer shall bear no
responsibility or liability for any losses resulting from investment or
reinvestment of any funds in accordance with this Section 4.01 or for the
selection of Eligible Investments in accordance with the provisions of this
Agreement.

            Section 4.02 POOL COLLECTIONS AND ALLOCATIONS. The Servicer shall
instruct the Indenture Trustee to apply all funds on deposit in the Collection
Account as described in the Indenture and each Supplement. Except as otherwise
provided below, the Servicer shall transfer all Pool Collections and other
Transferred Assets consisting of cash or cash equivalents from the Lockbox
Accounts into the Collection Account as promptly as possible after the date of
receipt of such Pool Collections, but in no event later than the second Business
Day following the date of receipt.

                                       36
<Page>

            Section 4.03 WITHDRAWALS FROM THE COLLECTION ACCOUNT. On each day
the Servicer shall determine the amounts payable to it as reimbursement of any
Nonrecoverable Advances pursuant to Section 3.12(b) and the Servicer shall
instruct the Indenture Trustee to pay such amounts over to the Servicer pursuant
to Section 8.07 of the Indenture. The determination by the Servicer that it has
made a Nonrecoverable Advance shall be evidenced by an Officer's Certificate of
the Servicer delivered to the Indenture Trustee and the Issuer. The Indenture
Trustee shall be entitled to conclusively rely on the Servicer's determination
that a Servicer Advance is a Nonrecoverable Advance.

                               [END OF ARTICLE IV]

                                       37
<Page>

                                    ARTICLE V

                                SECURITY INTEREST

            Section 5.01 SECURITY INTEREST. Without prejudice to the provisions
of Section 2.01 providing for the absolute transfer of the Transferor's interest
in the Pool Receivables and other Transferred Assets to the Issuer, the
Transferor hereby assigns and grants to the Issuer a first priority security
interest in the Transferor's right, title and interest, if any, in, to and under
all of the following, whether now or hereafter existing: all Pool Receivables,
all other Transferred Assets and all proceeds thereof.

            Section 5.02 ENFORCEMENT OF RIGHTS. The Transferor acknowledges that
the Transferred Assets include all rights acquired by the Transferor under the
Receivables Purchase Agreement. Accordingly, the Transferor agrees that the
Issuer and its assigns (including without limitation the Indenture Trustee)
shall have the sole right to enforce the Transferor's rights and remedies under
the Receivables Purchase Agreement (including the rights and remedies of CMF
under the Purchase Agreement and the PHH Guarantee).

                               [END OF ARTICLE V]

                                       38
<Page>

                                   ARTICLE VI

                    OTHER MATTERS RELATING TO THE TRANSFEROR

            Section 6.01 LIABILITY OF THE TRANSFEROR. The Transferor shall be
liable for all obligations, covenants, representations and warranties of the
Transferor arising under or related to this Agreement. Except as provided in the
preceding sentence, the Transferor shall be liable only to the extent of the
obligations specifically undertaken by it in its capacity as a Transferor.

            Section 6.02 INDEMNIFICATION BY THE TRANSFEROR. Without limiting the
foregoing and any other rights that any ARSC Indemnified Party may have
hereunder or under applicable law, the Transferor hereby agrees to indemnify the
Issuer, each holder of the Notes, the Indenture Trustee and each of the
successors, permitted transferees and assigns of the foregoing, and all
officers, directors, shareholders, controlling Persons, employees and agents of
any of the foregoing (each of the foregoing Persons, an "ARSC INDEMNIFIED
PARTY"), from and against any and all damages, losses, claims (whether on
account of settlements or otherwise, and whether or not the applicable ARSC
Indemnified Party is a party to any action or proceeding that gives rise to any
ARSC Indemnified Losses), actions, suits, demands, judgments, liabilities
(including penalties), obligations or disbursements of any kind or nature and
related costs and expenses (including reasonable attorneys' fees and
disbursements) awarded against or incurred by any of them arising out of or as a
result of any of the following (all of the foregoing, collectively, "ARSC
INDEMNIFIED LOSSES"):

            (a) (i) any representation or warranty made or deemed made by the
      Transferor (or any of its respective Authorized Officers) (whether or not
      made or delivered to the ARSC Indemnified Party) under any of the
      Transaction Documents contains any untrue statement of a material fact or
      omits to state material facts necessary to make the statements made, in
      the light of the circumstances under which such statements were made, not
      misleading;

            (b) the failure by the Transferor to comply with any law, rule or
      regulation applicable to it with respect to any Transferred Asset;

            (c) the failure to vest and maintain vested in the Issuer a first
      priority perfected ownership or security interest in the Transferred
      Assets, free and clear of any Lien (other than any Permitted Lien),
      whether existing at the time of the sale of such Transferred Asset or at
      any time thereafter;

            (d) any failure of the Transferor to perform its duties or
      obligations in accordance with the provisions of the Transaction
      Documents;

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

            (f) any tax or governmental fee or charge (other than franchise
      taxes and taxes on or measured by the net income of any holder of the
      Notes issued by the Issuer

                                       39
<Page>

      under the Indenture), all interest and penalties thereon or with respect
      thereto, and all out-of-pocket costs and expenses (including the
      reasonable fees and expenses of counsel in defending against the same)
      that arise by reason of the purchase or ownership of the Transferred
      Assets;

            (g) any investigation, litigation or proceeding related to any use
      of the proceeds of any purchase made hereunder; and

            (h) any investigation or defense of, or participation in, any legal
      proceeding relating to the execution, delivery, enforcement, performance
      or administration of the Transaction Documents or any other document
      related thereto (whether or not such ARSC Indemnified Party is a party
      thereto).

            Notwithstanding anything to the contrary in this Agreement, any
representations, warranties and covenants made by the Transferor in this
Agreement or the other Transaction Documents that are qualified by or limited to
events or circumstances that have, or are reasonably likely to have, given rise
to a Material Adverse Effect (or words of like import) shall (solely for
purposes of the indemnification obligations set forth in this Section 6.01) be
deemed not to be so qualified or limited.

            If for any reason the indemnification provided in this Section 6.02
is unavailable to an ARSC Indemnified Party or is insufficient to hold an ARSC
Indemnified Party harmless, then the Transferor shall contribute to the amount
paid by such ARSC Indemnified Party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect not only the relative
benefits received by such ARSC Indemnified Party on the one hand, and the
Transferor on the other hand, but also the relative fault (if any) of such ARSC
Indemnified Party and the Transferor and any other relevant equitable
considerations.

            Notwithstanding the foregoing, no indemnification payments shall be
payable by the Transferor pursuant to this Section 6.02 until all amounts owing
by the Issuer under the Indenture have been paid in full and all amounts payable
by the Transferor to CMSC under the ARSC Subordinated Note have been paid in
full.

            Notwithstanding the foregoing, and without prejudice to the rights
that the Issuer may have pursuant to the other provisions of this Agreement or
the provisions of any of the other Transaction Documents, in no event shall any
ARSC Indemnified Party be indemnified for any ARSC Indemnified Losses (i)
resulting from negligence or willful misconduct on the part of such ARSC
Indemnified Party (or the negligence or willful misconduct on the part of any of
such ARSC Indemnified Party's officers, directors, employees or agents) or (ii)
to the extent the same includes ARSC Indemnified Losses in respect of
Transferred Assets and reimbursement therefor that would constitute credit
recourse to the Transferor, CMSC or CMF (without limiting any rights under the
Purchase Agreement) for the amount of any Receivable or other Transferred Asset
not paid by the related Obligor.

                               [END OF ARTICLE VI]

                                       40
<Page>

                                   ARTICLE VII

                     OTHER MATTERS RELATING TO THE SERVICER

            Section 7.01 LIABILITY OF THE SERVICER. The Servicer shall be liable
under this Article VII only to the extent of the obligations specifically
undertaken by the Servicer in its capacity as Servicer.

            Section 7.02 MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF, THE SERVICER. The Servicer shall not consolidate with or merge
into any other Person or convey, transfer or sell its properties and assets
substantially as an entirety to any Person, unless:

            (a) (i) the corporation formed by such consolidation or into which
      the Servicer is merged or the Person that acquires by conveyance, transfer
      or sale the properties and assets of the Servicer substantially as an
      entirety is, if the Servicer is not the surviving entity, a corporation
      organized and existing under the laws of the United States of America or
      any State or the District of Columbia, and, if the Servicer is not the
      surviving entity, such corporation expressly assumes, by an agreement
      supplemental hereto, executed and delivered to the Issuer and the
      Transferor, in form satisfactory to the Issuer, the performance of every
      covenant and obligation of the Servicer hereunder;

                  (ii) the Servicer has delivered to the Issuer and the
            Transferor an Officer's Certificate stating that such consolidation,
            merger, conveyance, transfer or sale complies with this Section 7.02
            and that all conditions precedent herein provided for relating to
            such transaction have been complied with;

                  (iii) the Servicer has given the Issuer, the Transferor, CMF,
            CMSC, and the Indenture Trustee notice of such consolidation, merger
            or transfer of assets;

                  (iv) immediately after giving effect to such transaction, no
            representation or warranty made pursuant to Section 3.04 has been
            breached in any material respect; and

                  (v) no Unmatured Servicer Default or Servicer Default has
            occurred and is continuing or would result from the contemplated
            transaction; and

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

            (b) the corporation formed by such consolidation or into which the
      Servicer is merged or the Person that acquires by conveyance or transfer
      the properties and assets of the Servicer substantially as an entirety is
      an Eligible Servicer.

            Section 7.03 LIMITATION ON LIABILITY OF THE SERVICER AND OTHERS.
Except as provided in Section 7.04, neither the Servicer nor any of the
directors, officers, employees or agents of the Servicer in its capacity as
Servicer shall be under any liability to the Transferor, the

                                       41
<Page>

Issuer, the Indenture Trustee, the holders of the Notes or any other Person for
any action taken or for refraining from the taking of any action in good faith
in its capacity as Servicer pursuant to this Agreement; PROVIDED, HOWEVER, that
this provision shall not protect the Servicer or any such Person against any
liability that otherwise would be imposed by reason of willful misfeasance, bad
faith or gross negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder. The Servicer and any director,
officer, employee or agent of the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
(other than the Servicer) with respect to any matters arising hereunder. The
Servicer shall not be under any obligation to appear in, prosecute or defend any
legal action that is not incidental to its duties as Servicer in accordance with
this Agreement and that in its reasonable judgment may involve it in any expense
or liability. Subject to the terms of the Transaction Documents, the Servicer
may, in its sole discretion, undertake any such legal action that it may deem
necessary or desirable for the benefit of the holders of the Notes with respect
to this Agreement and the rights and duties of the parties hereto and the
interests of the holders of the Notes issued by the Issuer under the Indenture.

            Section 7.04 INDEMNIFICATION BY THE SERVICER. The Servicer shall
indemnify and hold harmless each of CMSC, CMF, the Transferor, the Issuer, the
Indenture Trustee and its directors, officers, employees and agents from and
against any and all loss, liability, claim, expense, actions, suits, demands,
damage or injury suffered or sustained by reason of (i) any representation or
warranty made by the Servicer under any of the Transaction Documents, any
Receivables Activity Report or any other information or report delivered by the
Servicer with respect to the Servicer or the Transferred Assets having been
untrue or incorrect in any material respect when made or deemed to have been
made; or (ii) any acts or omissions of the Servicer pursuant to this Agreement
(other than such as may arise from the negligence or willful misconduct of CMSC,
CMF, the Transferor, the Issuer and the Indenture Trustee, respectively, and
their respective directors, officers, employees and agents), including any
judgment, award, settlement, reasonable attorneys' fees and other costs or
expenses incurred in connection with the defense of any action, proceeding or
claim, that in each case arises from or relates to a breach by the Servicer of
its representations, warranties, covenants or agreements hereunder; or (iii) any
reduction in the Unpaid Balance of any Pool Receivable as a result of any cash
discount or any adjustment by the Servicer, including any such adjustment that
gives rise to a Servicer Dilution Adjustment (but not including any write-off of
any Receivable) or (iv) any failure of the Servicer to comply with any material
applicable law, rule or regulation applicable to it and which relates to the
servicing or administration of the Transferred Assets. Indemnification pursuant
to this Section 7.04 shall not be payable from the Transferred Assets. The
Servicer's obligations under this Section 7.04 shall survive the termination of
this Agreement, the resignation or removal of the Indenture Trustee or the
earlier removal or resignation of the Servicer.

            Section 7.05 RESIGNATION OF THE SERVICER. The Servicer shall not
resign from the obligations and duties hereby imposed on it except (a) upon
determination that (i) the performance of its duties hereunder is no longer
permissible under applicable law and (ii) there is no reasonable action that the
Servicer could take to make the performance of its duties hereunder permissible
under applicable law or (b) upon the assumption, by an agreement supplemental
hereto, executed and delivered to the Issuer and the Transferor, in form
satisfactory to the Issuer and the Majority Investors, of the obligations and
duties of the Servicer hereunder by (i) any of its Affiliates that is a direct
or indirect wholly owned subsidiary of the Performance Guarantor,

                                       42
<Page>

subject to reaffirmation by the Performance Guarantor of the PHH Guarantee with
respect to such Successor Servicer, or (ii) with the consent of the Majority
Investors, by any other entity that qualifies as an Eligible Servicer. Any
determination permitting the resignation of the Servicer shall be evidenced as
to clause (a) above by an Opinion of Counsel to such effect delivered to the
Issuer, the Indenture Trustee and the Transferor. No resignation shall become
effective until a Successor Servicer shall have assumed the responsibilities and
obligations of the Servicer in accordance with Section 9.02. If, as of the date
of the determination that the Servicer may no longer act as Servicer under
clause (a) above, the Issuer is unable to appoint a Successor Servicer, the
Indenture Trustee shall serve as Successor Servicer. Notwithstanding the
foregoing, if it is legally unable so to act, the Indenture Trustee shall
petition a court of competent jurisdiction to appoint any Eligible Servicer as
the Successor Servicer hereunder.

            Section 7.06 ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION
REGARDING THE RECEIVABLES. In addition to the access rights provided under
Section 3.07(b), the Servicer shall provide to the Issuer and the Indenture
Trustee access to the documentation regarding the Lockbox Accounts and the Pool
Receivables if the Issuer or the Indenture Trustee is required in connection
with the enforcement of the rights of holders of the Notes or by applicable
statutes or regulations to review such documentation, such access being afforded
without charge but only (a) upon reasonable request (but in no event less than
five Business Days), (b) during normal business hours, (c) subject to the
Servicer's normal security and confidentiality procedures and (d) at reasonably
accessible offices in the continental United States designated by the Servicer.
Nothing in this Section 7.06 shall derogate from the obligation of CMSC, CMF,
the Transferor, the Issuer, the Indenture Trustee and the Servicer to observe
any applicable law prohibiting disclosure of information regarding the
Transferred Employees, and the failure of the Servicer to provide access as
provided in this Section 7.06 as a result of such obligation shall not
constitute a breach of this Section 7.06.

                              [END OF ARTICLE VII]

                                       43
<Page>

                                  ARTICLE VIII

                                   TERMINATION

            Section 8.01 TRANSFER TERMINATION EVENTS. The following events shall
be "TRANSFER TERMINATION EVENTS":

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

            (b) Any representation or warranty made by the Transferor under any
of the Transaction Documents shall prove to have been untrue or incorrect in any
material respect when made or deemed to have been made, such failure could
reasonably be expected to have a Material Adverse Effect with respect to the
Transferor or the interest of the Issuer or its assigns in the Transferred
Assets and such failure remains unremedied for 30 days; or

            (c) The Transferor shall fail to perform or observe, as and when
required, (i) any term, covenant or agreement contained in this Agreement or any
of the other Transaction Documents to which it is a party, and such failure
shall remain unremedied for: in the case of a failure to maintain its separate
corporate existence pursuant to Section 2.05(e), the covenant to segregate Pool
Collections pursuant to Section 2.05(f), the covenant to provide records
pursuant to Section 7.1(k), the covenant to file financing or continuation
statements pursuant to Section 2.01(d) or the negative covenants of the
Transferor set forth in Section 2.06, ten days, or (ii) any other term, covenant
or agreement contained in this Agreement or any of the other Transaction
Documents to which it is a party, which failure could reasonably be expected to
have a Material Adverse Effect with respect to the Transferor or the interest of
the Issuer or its assigns in the Transferred Assets, 30 days; or

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

            (e) The Transferor's representation and warranty in Section 2.02(k)
shall not be true at any time with respect to a substantial portion of the
Transferred Assets; or

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

            (g) A CMF Purchase Termination Event or an ARSC Purchase Termination
Event shall have occurred; or

            (h) This Agreement shall cease to be in full force and effect for
any reason other than in accordance with its terms.

                                       44
<Page>

If a Transfer Termination Event occurs, the Transferor shall promptly give
notice to the Issuer and the Indenture Trustee of such Transfer Termination
Event.

            Section 8.02 TRANSFER TERMINATION. (a) On the Transfer Termination
Date, the Transferor shall cease transferring Pool Receivables to the Issuer,
PROVIDED that any right, title and interest of the Transferor in and to any CMF
Designated Receivables arising from any Servicer Advances made thereafter,
including any Related Property relating thereto and proceeds thereof, shall
continue to be transferred. Notwithstanding any cessation of the transfer to the
Issuer of additional Pool Receivables, Pool Receivables transferred to the
Issuer prior to the Termination Date and Pool Collections in respect of such
Pool Receivables and the related Finance Charges, whenever accrued in respect of
such Pool Receivables, shall continue to be property of the Issuer available for
pledge by the Issuer under the Indenture.

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

                              [END OF ARTICLE VIII]

                                       45
<Page>

                                   ARTICLE IX

                                SERVICER DEFAULTS

            Section 9.01 SERVICER DEFAULTS. If any one of the following events
(a "SERVICER DEFAULT") shall occur and be continuing:

            (a) any failure on the part of the Servicer to deliver the
Receivables Activity Reports required under Section 3.07(c), to make any
payment, transfer or deposit, or to give instructions or to give notice to the
Issuer or the Indenture Trustee to make such payment, transfer or deposit on or
before the date occurring five Business Days after the date such payment,
transfer or deposit or such instruction or notice is required to be made or
given, as the case may be, under the terms of this Agreement;

            (b) (i) failure on the part of the Servicer duly to observe and
perform its covenants to give payment instructions to Obligors pursuant to
Section 3.05(f); to segregate Pool Collections pursuant to Section 3.05(g), to
provide records pursuant to Section 3.07, to file financing or continuation
statements provided to it pursuant to Section 3.02, or breach by the Servicer of
any of its negative covenants set forth in Section 3.06, which failure or breach
continues unremedied for ten calendar days, or (ii) failure on the part of the
Servicer duly to observe or perform in any material respect any other covenants
or agreements of the Servicer set forth in this Agreement, which failure has a
Material Adverse Effect on the rights of the holders of any Series of Notes
(determined without giving effect to any third-party credit enhancement) and
continues unremedied for a period of 30 days, in each case, after the date on
which written notice of such failure, requiring the same to be remedied, has
been given to the Servicer by the Issuer, or to the Servicer and the Issuer on
behalf of the Majority Investors, or the Servicer shall assign or delegate its
duties under this Agreement except as permitted by Sections 3.01(b) and 7.02;

            (c) any representation, warranty or certification made by the
Servicer in this Agreement or in any other Transaction Document or in any
certificate delivered pursuant to this Agreement proves to have been incorrect
in any material respect when made, which failure has a Material Adverse Effect
on the rights of the holders of any Series of Notes (determined without giving
effect to any third-party credit enhancement) and which failure continues
unremedied for a period of 30 days after the date on which notice thereof,
requiring the same to be remedied, has been given to the Servicer by the Issuer,
or to the Servicer and the Issuer on behalf of the Majority Investors; or

            (d) an Event of Bankruptcy occurs with respect to the Servicer;

then, in the event of any such Servicer Default, so long as the Servicer Default
shall not have been remedied the Indenture Trustee may, or at the direction of
the Majority Investors, the Indenture Trustee shall, by written notice then
given to the Servicer (and to the Indenture Trustee if given by the Majority
Investors) (a "TERMINATION NOTICE"), terminate all or any part of the rights and
obligations of the Servicer as Servicer under this Agreement. Notwithstanding
the foregoing, a delay in or failure of performance referred to in clause (a),
(b) or (c) for a period of 10 Business Days after the applicable grace period
shall not constitute a Servicer Default if such

                                       46
<Page>

delay or failure could not be prevented by the exercise of reasonable diligence
by the Servicer and such delay or failure was caused by an act of God or the
public enemy, acts of declared or undeclared war, public disorder, rebellion or
sabotage, epidemics, landslides, lightning, fire, hurricanes, earthquakes,
floods or similar causes not within the Servicer's control. The preceding
sentence does not relieve the Servicer from using all commercially reasonable
efforts to perform its obligations in a timely manner in accordance with the
terms of this Agreement.

            (e) The Indenture Trustee acting at the direction of the Majority
Investors shall be entitled, by giving a Termination Notice to the Servicer, to
terminate all or any part of the rights and obligations of CMSC as Servicer if:

                  (i) the Consolidated Net Worth of PHH on the last day of any
      fiscal quarter is less than the SUM of (i) $500,000,000 PLUS (ii) 50% of
      Consolidated Net Income, if positive, for each fiscal quarter after
      September 30, 1999; or

                  (ii) PHH Indebtedness less Cash Equivalents (owned by PHH or
      any of its Consolidated Subsidiaries and free of liens (other than liens
      securing Indebtedness)) exceeds six times Consolidated Net Worth; or

                  (iii) PHH fails to maintain a long-term unsecured debt rating
      of at least "BBB-" by Standard & Poor's and "Baa3" by Moody's' PROVIDED
      that if PHH has no outstanding long-term unsecured debt, then a shadow
      rating of PHH may be used to determine compliance with the foregoing
      rating requirement.

            After receipt by the Servicer of a Termination Notice, and on the
date that a Successor Servicer is appointed by the Indenture Trustee pursuant to
Section 9.03, all authority and power of the Servicer under this Agreement (or,
in the case of a partial transfer, such authority and power and a proportional
portion of the Servicing Fee as is described in the Termination Notice) shall
pass to and be vested in the Successor Servicer (a "SERVICE TRANSFER"); and the
Indenture Trustee is hereby authorized and empowered, upon the failure of the
Servicer to cooperate, to execute and deliver, on behalf of the Servicer, as
attorney-in-fact or otherwise, all documents and other instruments and to do and
accomplish all other acts or things necessary or appropriate to effect the
purposes of such Service Transfer. The Servicer agrees to cooperate with the
Indenture Trustee and such Successor Servicer in effecting the termination of
the responsibilities and rights of the Servicer to conduct servicing hereunder,
including the transfer to such Successor Servicer of authority of the Servicer
to service the Pool Receivables provided for under this Agreement, including (to
the extent transferred) all authority over all Pool Collections that on the date
of transfer are held by the Servicer for deposit, or which have been deposited
by the Servicer in the Collection Account, or which thereafter are received with
respect to the Receivables, and in assisting the Successor Servicer. The
Servicer shall within 20 Business Days of such Termination Notice transfer its
electronic records relating to the Pool Receivables to the Successor Servicer in
such electronic form as the Successor Servicer may reasonably request and shall
promptly transfer to the Successor Servicer all other records, correspondence
and documents necessary for the continued servicing of the Receivables in the
manner and at such times as the Successor Servicer shall reasonably request. To
the extent that compliance with this Section 9.01 requires the Servicer to
disclose to the Successor Servicer information of any kind that the Servicer
deems to be confidential, the Successor Servicer shall

                                       47
<Page>

be required to enter into such customary licensing and confidentiality
agreements as the Servicer deems reasonably necessary to protect its interests.
The Servicer being terminated (or replaced in part) shall bear all costs of the
appointment of a Successor Servicer hereunder, including but not limited to
those of the Indenture Trustee reasonably allocable to specific employees and
overhead, legal fees and expenses, accounting and financial consulting fees and
expenses, and costs of amending the Transaction Documents, if necessary.

            Section 9.02 PERFORMANCE BY ISSUER. If (i) the Transferor or the
Servicer fails to perform any of its agreements or obligations under any
Transaction Document to which it is a party and does not remedy such failure
within the applicable cure period, if any, and (ii) the Issuer in good faith
reasonably believes that the performance of such agreements and obligations is
necessary or appropriate to protect the interests of the holders of the Notes
issued by the Issuer under the Indenture, then the Issuer or its designee shall
have the right to perform, or cause performance of, such agreement or
obligation, and the reasonable expenses of the Issuer or its designee incurred
in connection therewith shall be payable by the Servicer as provided in Section
7.04 (if the Servicer has failed to perform its obligations) or by the
Transferor as provided in Section 6.04 (if the Transferor has failed to perform
its obligations). If the Transferor or the Servicer fails to file at any time
any financing statement or continuation statement or amendment thereto or
assignment thereof that it is required to file pursuant to this Agreement or any
of the other Transaction Documents to which it is a party, the Issuer or its
assigns shall have the right to file, and the Transferor and the Servicer hereby
authorize the Issuer or its assigns to file, at the expense of the Transferor,
such financing or continuation statements and amendments thereto and assignments
thereof with respect to all or any of the Receivables or the other Transferred
Assets now existing or hereafter arising in the name of the Transferor.

            Section 9.03 INDENTURE TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

            (a) On and after the receipt by the Servicer of a Termination Notice
pursuant to Section 9.01, the Servicer shall continue to perform all servicing
functions under this Agreement until the date specified in the Termination
Notice or otherwise specified by the Indenture Trustee or until a date mutually
agreed upon by the Servicer and Indenture Trustee. The Issuer shall select, as
promptly as possible after the giving of a Termination Notice, and the Indenture
Trustee shall appoint, an Eligible Servicer as a successor servicer (the
"SUCCESSOR SERVICER"), and such Successor Servicer shall accept its appointment
by a written assumption in a form acceptable to the Issuer. If a Successor
Servicer has not been appointed or has not accepted its appointment at the time
when the Servicer ceases to act as Servicer, the Indenture Trustee without
further action automatically shall be appointed the Successor Servicer.
Notwithstanding the foregoing, the Issuer shall, if the Indenture Trustee is
legally unable so to act, petition at the expense of the Servicer a court of
competent jurisdiction to appoint any established institution qualifying as an
Eligible Servicer as the Successor Servicer hereunder.

            (b) Upon its appointment, the Successor Servicer shall be the
successor in all respects to the Servicer with respect to servicing functions
under this Agreement and shall be subject to all the responsibilities, duties
and liabilities relating thereto placed on the Servicer by the terms and
provisions hereof, and all references in this Agreement to the Servicer shall be
deemed to refer to the Successor Servicer. Notwithstanding the foregoing, or
anything in this Section 9.03 to the contrary, the Successor Servicer shall have
no responsibility or obligation

                                       48
<Page>

(i) for any representation or warranty of the predecessor Servicer or any other
Successor Servicer hereunder or (ii) for any act or omission of either a
predecessor or any other Successor Servicer. The Indenture Trustee may conduct
any activity required of it as Servicer hereunder through an Affiliate or
through an agent. Neither the Indenture Trustee nor any other Successor Servicer
shall be deemed to be in default hereunder due to any act or omission of a
predecessor Servicer, including but not limited to failure to timely deliver to
the Indenture Trustee any instructions pursuant to Section 4.02, any funds
required to be deposited with or transferred to the Indenture Trustee, or any
breach of its duty to cooperate with a Service Transfer.

            (c) All authority and power granted to the Servicer under this
Agreement shall automatically cease and terminate upon termination of this
Agreement pursuant to Section 10.01, and shall pass to and be vested in the
Transferor, and the Transferor is hereby authorized and empowered to execute and
deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, all
documents and other instruments, and to do and accomplish all other acts or
things necessary or appropriate to effect the purposes of such transfer of
servicing rights. The Servicer agrees to cooperate with the Transferor in
effecting the termination of the responsibilities and rights of the Servicer to
conduct servicing of the Receivables and the other Transferred Assets. The
Servicer shall transfer its electronic records relating to the Receivables and
the other Transferred Assets to the Transferor or its designee in such
electronic form as it may reasonably request and shall transfer all other
records, correspondence and documents to it in the manner and at such times as
it shall reasonably request.

            (d) POWER OF ATTORNEY. The Transferor hereby irrevocably appoints
the Issuer to act as the Transferor's attorney-in-fact, with full authority in
the place and stead of the Transferor and in the name of the Transferor or
otherwise, from time to time after the occurrence and during the continuance of
an Unmatured Servicer Default or a Servicer Default or other termination of the
Servicer under Section 9.01 or a Transfer Termination Event, to take at the
direction of the Issuer any action and to execute any instrument or document
that the Issuer may deem necessary to accomplish the purposes of this Agreement
including without limitation:

                  (i) to ask, demand, collect, sue for, recover, compromise,
            receive and give acquittance and receipts for moneys due and to
            become due under or in respect of any Pool Receivable or any other
            Transferred Asset;

                  (ii) to receive, endorse, and collect any drafts or other
            instruments, documents and chattel paper, in connection with clause
            (i) above;

                  (iii) to file any claims or take any action or institute any
            proceedings that the Issuer in its reasonable determination deems
            necessary or appropriate for the collection of any of the Pool
            Receivables or any other Transferred Asset or otherwise to enforce
            the rights of the Issuer and the holders of the Notes issued by the
            Issuer under the Indenture with respect to any of the Pool
            Receivables or any other Transferred Asset;

                  (iv) to perform affirmative obligations of the Transferor
            under any Transaction Document; and

                                       49
<Page>

                  (v) to enforce the rights and remedies of the Transferor under
            any Transaction Document.

The Transferor hereby acknowledges, consents and agrees that the power of
attorney granted pursuant to this Section 9.03(d) is irrevocable and coupled
with an interest. The Transferor further agrees that the Issuer may delegate to
the Indenture Trustee any of the above-referenced powers to the extent the
Issuer, in its sole and absolute discretion, without liability, deems advisable
and, upon such delegation, the Indenture Trustee shall, to the extent of any
power so delegated, be entitled to exercise the powers herein granted to the
Issuer.

            Section 9.04 NOTIFICATION TO HOLDERS. Within five Business Days
after the Servicer becomes aware of any Servicer Default, the Servicer shall
give notice thereof to CMSC, CMF, the Transferor, the Issuer, the Indenture
Trustee and any Series Enhancer. Upon any termination or appointment of a
Successor Servicer pursuant to this Article IX, the Indenture Trustee shall give
prompt notice thereof to the holders of the Notes, CMSC, CMF, the Transferor and
the Issuer.

            Section 9.05 MARKETING EXPENSES ACCOUNT. If (a) CMSC is the
Servicer, (b) the long-term unsecured debt rating of PHH falls below "BBB-" by
Standard & Poor's or "Baa3" by Moody's and (c) the average number of days the
Homes relating to outstanding Pool Receivables have been owned by CMSC and CMF
is more than 150 days, the Servicer shall establish and fund an Eligible Account
(the "MARKETING EXPENSES ACCOUNT") in the name of the Indenture Trustee, bearing
a designation clearly indicating that the funds and other property credited
thereto are held for the benefit of the Indenture Trustee and, to the extent
provided in Section 9.05(b), any Successor Servicer. Upon establishment of the
Marketing Expenses Account, the Servicer shall maintain an amount equal to the
Required Marketing Expenses Account Amount on deposit therein. On any Business
Day after the Marketing Expenses Account has been established, if the amount on
deposit in the Marketing Expenses Account is less than the Required Marketing
Expenses Account Amount, the Servicer shall deposit into the Marketing Expenses
Account an amount equal to the EXCESS of the Required Marketing Expenses Account
Amount OVER the amount on deposit in the Marketing Expenses Account. On each
Distribution Date after the Marketing Expenses Account has been established, the
Servicer shall be entitled to instruct the Indenture Trustee to withdraw from
the Marketing Expenses Account an amount equal to the EXCESS of the amount on
deposit in the Marketing Expenses Account OVER the Required Marketing Expenses
Account Amount. If so instructed, the Indenture Trustee shall withdraw such
excess amount from the Marketing Expenses Account and shall pay such amount to
or at the direction of the Servicer.

            (b) The Indenture Trustee may withdraw funds from the Marketing
Expenses Account (i) if CMSC is the Servicer, to pay for the cost of maintaining
and marketing the Homes to the extent CMSC as Servicer has failed to pay such
costs, (ii) to reimburse a Successor Servicer for the cost of maintaining and
marketing the Homes, but only to the extent such costs were actually incurred,
but not paid, by CMSC while acting as the Servicer, or to cover any costs of
maintaining and marketing the Homes attributable to CMSC's breach of its duties
as the Servicer prior to the appointment of such Successor Servicer or (iii) to
cover the costs of transition of servicing from CMSC to such Successor Servicer.
Funds on deposit in the

                                       50
<Page>

Marketing Expenses Account shall not be used to fund any payments to holders of
Notes of any Series.

                               [END OF ARTICLE IX]

                                       51
<Page>

                                    ARTICLE X

                                   TERMINATION

            Section 10.01 TERMINATION. This Agreement and the respective
obligations and responsibilities of CMSC, CMF, the Transferor, the Servicer, the
Issuer and the Indenture Trustee created hereby shall terminate, except with
respect to the duties described in Section 6.03, Section 7.04 and Section 11.06,
on the Final Payout Date.

                               [END OF ARTICLE X]

                                       52
<Page>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

            Section 11.01 AMENDMENT.

            (a) The provisions of this Agreement may be amended, modified or
waived from time to time by the parties hereto, by a written instrument signed
by each of them. Notwithstanding the preceding sentence, this Agreement shall be
amended by the parties hereto at the direction of the Transferor without the
consent of any of the holders of the Notes issued by the Issuer under the
Indenture to add, modify or eliminate such provisions as may be necessary or
advisable in order to enable all or a portion of the Transferred Assets (i) to
qualify as, and to permit an election to be made to cause the Issuer to be
treated as, a "financial asset securitization investment trust" as described in
the provisions of Section 860L of the Code, and (ii) to avoid the imposition of
state or local income or franchise taxes imposed on the Issuer's property or its
income, PROVIDED that (i) the Transferor delivers to the Issuer an Officer's
Certificate to the effect that the proposed amendments meet the requirements set
forth in this Section 11.01(a) and (ii) such amendment does not affect the
rights, duties or obligations of the Issuer hereunder.

            (b) Promptly after the execution of any such amendment or consent,
the Issuer shall furnish notification of the substance of such amendment to each
Rating Agency.

            Section 11.02 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SS. 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PRINCIPLES.

            Section 11.03 NOTICES; PAYMENTS. All demands, notices, instructions,
directions and communications under this Agreement shall be in writing and shall
be deemed to have been duly given if personally delivered at, mailed by
certified mail, return receipt requested, or sent by facsimile transmission (i)
in the case of CMSC or CMF, to the address provided in the Purchase Agreement or
the Receivables Purchase Agreement, respectively, (ii) in the case of the
Transferor, to 40 Apple Ridge Road, Suite 5000, Danbury, Connecticut 06810
(telecopier no. (203) 205-3056), with a copy to: John Borger, Esq. at 83 Wooster
Heights Road, Danbury, Connecticut 06810 (telecopier no. (203) 837-3759), (iii)
in the case of the Servicer, to 40 Apple Ridge Road, Danbury Connecticut 06810,
Attention: Chief Financial Officer (telecopier no. (203) 205-8136), (iv) in the
case of the Issuer, 40 Apple Ridge Road, Suite 4000, Danbury, Connecticut 06810,
Attention: Chief Financial Officer (telecopier no. (203) 205-1335), (v) in the
case of the Indenture Trustee 153 West 51st Street, New York, New York 10019
(telecopier no. (212) 373-1383) and (vi) to any other Person as specified in any
Supplement; or, as to each party, at such other address or facsimile number as
shall be designated by such party in a written notice to each other party.

                                       53
<Page>

            Section 11.04 SEVERABILITY OF PROVISIONS. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall for any
reason whatsoever be held invalid, then such provisions shall be deemed
severable from the remaining provisions of this Agreement and shall in no way
affect the validity or enforceability of the remaining provisions or of the
rights of the parties to the Transaction Documents.

            Section 11.05 FURTHER ASSURANCES. The parties hereto agree to do and
perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the Issuer or any other party
hereto more fully to effect the purposes of this Agreement, including the
execution of any financing statements or continuation statements relating to the
Receivables and the other Transferred Assets for filing under the provisions of
the UCC or other applicable law of any applicable jurisdiction.

            Section 11.06 NONPETITION COVENANT. (a) Notwithstanding any prior
termination of this Agreement, CMSC, CMF, the Indenture Trustee, the Servicer,
the Transferor and any assignee of the Issuer shall not, prior to the date that
is one year and one day after the termination of this Agreement with respect to
the Issuer, acquiesce, petition or otherwise invoke or cause the Issuer to
invoke the process of any Governmental Authority for the purpose of commencing
or sustaining a case against the Issuer under any Federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Issuer or any
substantial part of its property or ordering the winding-up or liquidation of
the affairs of the Issuer.

            (b) Notwithstanding any prior termination of this Agreement, CMSC,
CMF, the Servicer, the Indenture Trustee, the Issuer and any assignee of the
Issuer shall not, prior to the date that is one year and one day after the
termination of this Agreement with respect to the Transferor, acquiesce,
petition or otherwise invoke or cause the Transferor to invoke the process of
any Governmental Authority for the purpose of commencing or sustaining a case
against the Transferor under any Federal or state bankruptcy, insolvency or
similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Transferor or any substantial part
of its property or ordering the winding-up or liquidation of the affairs of the
Transferor.

            Section 11.07 NO WAIVER; CUMULATIVE REMEDIES. No failure to
exercise, and no delay in exercising, any right, remedy, power or privilege on
the part of any party under this Agreement shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or
privilege under this Agreement, preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges provided under this Agreement are cumulative and
not exhaustive of any rights, remedies, powers and privileges provided by law.

            Section 11.08 COUNTERPARTS. This Agreement may be executed in two or
more counterparts (and by different parties on separate counterparts), each of
which shall be an original, but all of which together shall constitute one and
the same instrument.

                                       54
<Page>

            Section 11.09 THIRD-PARTY BENEFICIARIES. This Agreement will inure
to the benefit of and be binding upon the parties hereto, the holders of the
Notes and their respective successors and permitted assigns. Except as otherwise
expressly provided in this Agreement, no other Person will have any right or
obligation hereunder.

            Section 11.10 MERGER AND INTEGRATION. Except as specifically stated
otherwise herein, this Agreement sets forth the entire understanding of the
parties relating to the subject matter hereof, and all prior understandings,
written or oral, are superseded by this Agreement. This Agreement may not be
modified, amended, waived or supplemented except as provided herein.

            Section 11.11 HEADINGS. The headings herein are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of
any provision hereof.

            Section 11.12 CONFIDENTIALITY. The Issuer and the Transferor each
agrees to maintain the confidentiality of any information regarding CMSC,
Cendant Corporation and PHH obtained in accordance with the terms of this
Agreement that is not publicly available; PROVIDED, HOWEVER, that the Issuer or
the Transferor may reveal such information (a) as necessary or appropriate in
connection with the administration or enforcement of this Agreement or the
Issuer's issuance of Notes under the Indenture or (b) as required by law,
government regulation, court proceeding or subpoena. Notwithstanding anything
herein to the contrary, none of CMSC, Cendant Corporation nor PHH shall have any
obligation to disclose to the Issuer or its assignees and assigns any personal
and confidential information relating to a Transferred Employee.

            Section 11.13 COSTS, EXPENSES AND TAXES. In addition to the
obligations of the Transferor under ARTICLE VI, the Transferor agrees to pay on
demand:

            (a) all reasonable costs and expenses incurred by the Issuer and its
      assignees in connection with the negotiation, preparation, execution and
      delivery of, the administration (including periodic auditing), the
      preservation of any rights under, or the enforcement of, or any breach of,
      this Agreement (including any amendment, supplement or modification
      hereto), including without limitation (i) the reasonable fees, expenses
      and disbursements of counsel to any such Persons incurred in connection
      with any of the foregoing or in advising such Persons as to their
      respective rights and remedies under this Agreement and (ii) all
      reasonable out-of-pocket expenses (including reasonable fees and expenses
      of independent accountants) incurred in connection with any review of the
      Transferor's books and records prior to the execution and delivery hereof,
      and

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

            Section 11.14 SUBMISSION TO JURISDICTION. EACH PARTY HERETO HEREBY
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW

                                       55
<Page>

YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF
NEW YORK, NEW YORK, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT, AND HEREBY (a) IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR
FEDERAL COURT; (b) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY
DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING; AND (c) IRREVOCABLY APPOINTS CT CORPORATION SYSTEM (THE "PROCESS
AGENT"), WITH AN OFFICE ON THE DATE HEREOF AT 111 EIGHTH AVENUE, NEW YORK, NEW
YORK 10011, UNITED STATES OF AMERICA, AS ITS AGENT TO RECEIVE ON BEHALF OF IT
AND ITS PROPERTY SERVICE OF COPIES OF THE SUMMONS AND COMPLAINT AND ANY OTHER
PROCESS THAT MAY BE SERVED IN ANY SUCH ACTION OR PROCEEDING. SUCH SERVICE MAY BE
MADE BY MAILING OR DELIVERING A COPY OF SUCH PROCESS IN CARE OF THE PROCESS
AGENT AT THE PROCESS AGENT'S ABOVE ADDRESS, AND EACH PARTY HERETO HEREBY
IRREVOCABLY AUTHORIZES AND DIRECTS THE PROCESS AGENT TO ACCEPT SUCH SERVICE ON
ITS BEHALF. EACH PARTY HERETO AGREES TO ENTER INTO ANY AGREEMENT RELATING TO
SUCH APPOINTMENT THAT THE PROCESS AGENT MAY CUSTOMARILY REQUIRE AND TO PAY THE
PROCESS AGENT'S CUSTOMARY FEES UPON DEMAND. AS AN ALTERNATIVE METHOD OF SERVICE,
EACH PARTY HERETO ALSO IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL
PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES OF SUCH
PROCESS TO SUCH PARTY AT ITS ADDRESS SPECIFIED PURSUANT TO SECTION 11.03.
NOTHING IN THIS SECTION 11.14 SHALL AFFECT THE RIGHT OF EITHER PARTY HERETO TO
SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF
EITHER PARTY HERETO TO BRING ANY ACTION OR PROCEEDING AGAINST THE OTHER PARTY
HERETO OR ANY OF ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION.

            Section 11.15 WAIVER OF JURY TRIAL. EACH PARTY HERETO WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS UNDER OR RELATING TO THIS AGREEMENT OR ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN
CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), ACTIONS OF EITHER OF THE
PARTIES HERETO OR ANY OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS
AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A
COURT AND NOT BEFORE A JURY.

                                       56
<Page>

            Section 11.16 ACKNOWLEDGMENT AND CONSENT.

            (a) The Transferor acknowledges that, from time to time prior to the
Termination Date, the Issuer intends to pledge the Transferred Assets to the
Indenture Trustee pursuant to the Indenture. The Transferor acknowledges and
agrees to each such pledge by the Issuer and consents to the assignment by the
Issuer of all or any portion of its right, title and interest in, to and under
the Transferred Assets, this Agreement and the other Transaction Documents and
all of the Issuer's rights, remedies, powers and privileges and all claims of
the Issuer against the Transferor under or with respect to this Agreement and
the other Transaction Documents (whether arising pursuant to the terms of this
Agreement or otherwise available at law or in equity), including without
limitation (whether or not an Unmatured Servicer Default or a Servicer Default
has occurred and is continuing) (i) the right of the Issuer at any time to
enforce this Agreement against the Transferor and the obligations of the
Transferor hereunder and (ii) the right at any time to give or withhold any and
all consents, requests, notices, directions, approvals, demands, extensions or
waivers under or with respect to this Agreement, any other Transaction Document
or the obligations in respect of the Transferor thereunder, all of which rights,
remedies, powers, privileges and claims may be exercised and/or enforced by the
Issuer's successors ands assigns to the same extent as the Issuer may do.

            Section 11.17 NO PARTNERSHIP OR JOINT VENTURE. Nothing contained in
this Agreement shall be deemed or construed by the parties hereto or by any
third Person to create the relationship of principal and agent or of partnership
or of joint venture.

                               [END OF ARTICLE XI]

                                       57
<Page>

            IN WITNESS WHEREOF, the Transferor, CMSC, CMF, the Servicer, the
Indenture Trustee and the Issuer have caused this Transfer and Servicing
Agreement to be duly executed by their respective officers as of the day and
year first above written.

                                  APPLE RIDGE SERVICES CORPORATION,
                                       as Transferor,

                                  by  /s/ Dennis O'Gara
                                     ----------------------------------------
                                      Name: Dennis O'Gara
                                      Title: SVP, CFO

                                  CENDANT MOBILITY SERVICES CORPORATION,
                                       as originator and Servicer,

                                  by   /s/ Dennis O'Gara
                                     ----------------------------------------
                                      Name: Dennis O'Gara
                                      Title:  SVP, CFO

                                  CENDANT MOBILITY FINANCIAL CORPORATION,
                                       as originator,

                                  by   /s/ Eric J. Barnes
                                     -----------------------------------------
                                      Name: Eric J. Barnes
                                      Title:  VP, Controller

                                  APPLE RIDGE FUNDING LLC,
                                       as transferee,

                                  by   /s/ Eric J. Barnes
                                    ------------------------------------------
                                      Name: Eric J. Barnes
                                      Title: VP, Controller

              [Signature page to Transfer and Servicing Agreement]

<Page>

                                     BANK ONE, NATIONAL ASSOCIATION,
                                          as Indenture Trustee,

                                     by   /s/ Steve M. Husbands
                                          -----------------------------------
                                         Name: Steve M. Husbands
                                         Title: Assistant Vice President

              [Signature page to Transfer and Servicing Agreement]

<Page>

                                SCHEDULE 2.02(m)

                                       to

                        TRANSFER AND SERVICING AGREEMENT
                           Dated as of April 25, 2000

                         Principal Place of Business and
                    Chief Executive Office of the Transferor

APPLE RIDGE SERVICES CORPORATION
40 Apple Ridge Road, Suite 4000
Danbury, CT 06810
Tel: (203) 205-1335

                              List of Offices Where
                           the Servicer Keeps Records

CENDANT MOBILITY SERVICES CORPORATION
40 Apple Ridge Road
Danbury, CT 06810

CENDANT MOBILITY SERVICES CORPORATION
8081 Royal Ridge Parkway
Suite 200
Irving, TX 75063

CENDANT MOBILITY SERVICES CORPORATION
27271 Las Ramblas
Mission Viejo, CA 92691

CENDANT MOBILITY SERVICES CORPORATION
2221 Camden Court
Oakbrook, IL 60523

CENDANT MOBILITY SERVICES CORPORATION
401 Lennon Lane
Suite 200
Walnut Creek, CA 94598

                                   S-2.02(m)-1

<Page>

                                SCHEDULE 2.02(o)

                                       to

                        TRANSFER AND SERVICING AGREEMENT
                           Dated as of April 25, 2000

                               List of Legal Names

                                      None.

                                   S-2.02(o)-1
<Page>

                                SCHEDULE 3.04(l)

                                       to

                        TRANSFER AND SERVICING AGREEMENT
                           Dated as of April 25, 2000

                              List of Lockbox Banks

Bank One, National Association
Attn.: Denise White
200 South Wocker Drive
Mailcode, IL1-0935
Chicago, IL 60606

Demand Deposit Account Number and Associated Lockbox Numbers

DDA No.: 52-69938          Lockbox Nos.: 93358/73049

Mellon Bank, N.A.
Document Control Manager
Three Mellon Bank Center
Room 3119
Pittsburgh, PA  15259

Demand Deposit Account Number and Associated Lockbox Number

1.       DDA No.: 005-7883              Lockbox No.: 360956

2.       DDA No.: 144-6397              Lockbox No.: 360287

                                   S-3.04(l)-1

<Page>

                                    EXHIBIT A

                                       to

                        TRANSFER AND SERVICING AGREEMENT

                           Dated as of April 25, 2000

                      FORM OF ANNUAL SERVICER'S CERTIFICATE

          (To be delivered on or before April 30 of each calendar year
          beginning with April 30, 2001 pursuant to Section 3.09 of the
               Transfer and Servicing Agreement referred to below)

                      CENDANT MOBILITY SERVICES CORPORATION

            The undersigned, a duly authorized representative of Cendant
Mobility Services Corporation, as Servicer ("CMSC"), pursuant to the Transfer
and Servicing Agreement dated as of April 25, 2000 (as amended and supplemented,
the "AGREEMENT"), by and between Apple Ridge Services Corporation as Transferor,
CMSC as originator and Servicer, Cendant Mobility Financial Corporation as
originator, Apple Ridge Funding, LLC as transferee, and Bank One, National
Association, as Indenture Trustee does, hereby certify that:

            1. CMSC is, as of the date hereof, the Servicer under the Agreement.

            2. The undersigned is a Servicing Officer who is duly authorized
pursuant to the Agreement to execute and deliver this Certificate to the Issuer.

            3. A review of the activities of the Servicer during the year ended
December 31, ____, and of its performance under the Agreement was conducted
under my supervision.

            4. Based on such review, the Servicer has, or has caused to be, to
the best of my knowledge, performed its obligations under the Agreement in all
material respects throughout such year and no default in the performance of such
obligations has occurred or is continuing except as set forth in paragraph 5
below.

            5. The following is a description of each default in the performance
of the Servicer's obligations under the provisions of the Agreement known to me
to have been made by the Servicer during the year ended December 31, _____ which
sets forth in detail (i) the nature of each such default, (ii) the action taken
by the Servicer, if any, to remedy each such default and (iii) the current
status of each such default: [If applicable, insert "None."]

            Capitalized terms used in this Certificate have their respective
meanings as set forth in the Agreement.

                                     E-A-1
<Page>

            IN WITNESS WHEREOF, the undersigned has duly executed this
Certificate this ____ day of _____________, 20___.

                                CENDANT MOBILITY SERVICES CORPORATION,
                                    as Servicer,

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

                                     E-A-2
<Page>

                                    EXHIBIT B

                                       to

                        TRANSFER AND SERVICING AGREEMENT

                           Dated as of April 25, 2000

                           FORMS OF LOCKBOX AGREEMENTS

                                     E-B-1

<Page>

                                    EXHIBIT C

                               SERVICING OFFICERS

Eric Barnes

Duncan Cocroft

Mark E. Johnson

Dennis O'Gara

John Peterson

                                     E-C-1<Page>

                                                                   Exhibit 10.17

                                                                  EXECUTION COPY

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

                                MASTER INDENTURE

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

                            APPLE RIDGE FUNDING LLC

                                   as Issuer,

                         BANK ONE, NATIONAL ASSOCIATION

                             as Indenture Trustee,

                                      and

                              THE BANK OF NEW YORK

                   as Paying Agent, Authentication Agent and
                          Transfer Agent and Registrar

                                MASTER INDENTURE

                           Dated as of April 25, 2000

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

<Page>

                                TABLE OF CONTENTS

                                                                            PAGE

                                    ARTICLE I
                                   DEFINITIONS

Section 1.01. Definitions......................................................2

Section 1.02. Other Definitional Provisions...................................14

                                   ARTICLE II
                                    THE NOTES

Section 2.01. Form Generally..................................................15

Section 2.02. Denominations...................................................15

Section 2.03. Execution, Authentication and Delivery..........................15

Section 2.04. Authentication Agent............................................16

Section 2.05. Registration of and Limitations on Transfer and Exchange of
              Notes...........................................................17

Section 2.06  Mutilated, Destroyed, Lost or Stolen Notes......................18

Section 2.07  Persons Deemed Owners...........................................19

Section 2.08. Paying Agent....................................................19

Section 2.09  Cancellation....................................................20

Section 2.10. New Issuances...................................................21

Section 2.11. Book-Entry Notes................................................22

Section 2.12. Notices to Clearing Agency or Foreign Clearing Agency...........23

Section 2.13. Definitive Notes................................................23

Section 2.14. Global Note; Euro-Note Exchange Date............................24

Section 2.15. Representations and Covenants of Paying Agent,
              Authentication Agent and Transfer Agent and Registrar...........24

                                   ARTICLE III
                   REPRESENTATIONS AND COVENANTS OF THE ISSUER

Section 3.01. Representations and Warranties of the Issuer....................25

Section 3.02. Affirmative Covenants of the Issuer.............................28

Section 3.03. Negative Covenants of the Issuer................................30

Section 3.04. Protection of Pledged Assets....................................31

Section 3.05. Opinions as to Pledged Assets...................................32

Section 3.06. Obligations Regarding Servicing of Receivables..................32

Section 3.07  Separate Corporate Existence of the Issuer......................33

                                        i
<Page>

                                TABLE OF CONTENTS
                                   (Continued)

                                                                            PAGE
                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

Section 4.01. Satisfaction and Discharge of this Indenture....................34

Section 4.02. Application of Trust Money......................................35

                                    ARTICLE V
                         EVENTS OF DEFAULT AND REMEDIES

Section 5.01. Events of Default...............................................36

Section 5.02. Acceleration of Maturity; Rescission and Annulment..............37

Section 5.03. Collection of Indebtedness and Suits for Enforcement by
              the Indenture Trustee...........................................37

Section 5.04. Remedies; Priorities............................................39

Section 5.05. Sale of Assets..................................................40

Section 5.06. Limitations on Suits............................................41

Section 5.07. Unconditional Right of Noteholders to Receive Principal
              and Interest....................................................42

Section 5.08. Restoration of Rights and Remedies..............................42

Section 5.09. Rights and Remedies Cumulative..................................42

Section 5.10. Delay or Omission Not a Waiver..................................42

Section 5.11. Control by Noteholders..........................................42

Section 5.12. Waiver of Past Defaults.........................................43

Section 5.13. Undertaking for Costs...........................................43

Section 5.14. Waiver of Stay or Extension Laws................................44

Section 5.15. Action on Notes.................................................44

                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

Section 6.01. Duties of the Indenture Trustee.................................44

Section 6.02. Notice of Event of Default......................................46

Section 6.03. Rights of Indenture Trustee.....................................46

Section 6.04. Not Responsible for Recitals or Issuance of Notes...............47

Section 6.05. May Hold Notes..................................................48

                                       ii
<Page>

                                TABLE OF CONTENTS
                                   (Continued)

                                                                            PAGE

Section 6.06. Money Held in Trust.............................................48

Section 6.07. Compensation, Reimbursement and Indemnification.................48

Section 6.08. Replacement of Indenture Trustee................................49

Section 6.09. Successor Indenture Trustee by Merger...........................49

Section 6.10. Appointment of Co-Indenture Trustee or Separate Indenture
              Trustee.........................................................50

Section 6.11. Eligibility; Disqualification...................................51

Section 6.12. Representations and Covenants of the Indenture Trustee..........51

Section 6.13. Custody of Pledged Assets and Other Collateral..................51

                                   ARTICLE VII
               NOTEHOLDERS' LIST AND REPORTS BY INDENTURE TRUSTEE

Section 7.01. Issuer to Furnish Indenture Trustee Names and Addresses of
              Noteholders.....................................................52

Section 7.02. Preservation of Information.....................................52

                                  ARTICLE VIII
                 ALLOCATION AND APPLICATION OF POOL COLLECTIONS

Section 8.01. Collection of Money.............................................53

Section 8.02. Rights of Noteholders...........................................53

Section 8.03. Establishment of Accounts.......................................53

Section 8.04. Pool Collections and Allocations................................54

Section 8.05. Release of Pledged Assets.......................................55

Section 8.06. Officer's Certificate...........................................55

Section 8.07. Money for Note Payments to Be Held in Trust.....................55

                                   ARTICLE IX
                    DISTRIBUTIONS AND REPORTS TO NOTEHOLDERS

                                    ARTICLE X
                             SUPPLEMENTAL INDENTURES

Section 10.01. Supplemental Indentures Without Consent of Noteholders.........56

Section 10.02. Supplemental Indentures with Consent of Noteholders............58

Section 10.03. Execution of Supplemental Indentures...........................59

Section 10.04. Effect of Supplemental Indenture...............................59

Section 10.05. Reference in Notes to Supplemental Indentures..................59

                                      iii
<Page>

                                TABLE OF CONTENTS
                                   (Continued)

                                   ARTICLE XI
                                   DEFEASANCE

Section 11.01. Defeasance.....................................................60

                                   ARTICLE XII
                                  MISCELLANEOUS

Section 12.01. Compliance Certificates and Opinions, etc......................61

Section 12.02. Form of Documents Delivered to Indenture Trustee...............63

Section 12.03. Acts of Noteholders............................................64

Section 12.04. Notices to Issuer, Indenture Trustee, Paying Agent,
               Authentication Agent and Transfer Agent and Registrar..........65

Section 12.05. Notices to Noteholders; Waiver.................................65

Section 12.06. Alternate Payment and Notice Provisions........................65

Section 12.07. Effect of Headings and Table of Contents.......................66

Section 12.08. Successors and Assigns.........................................66

Section 12.09. Separability...................................................66

Section 12.10. Benefits of Indenture..........................................66

Section 12.11. Legal Holidays.................................................66

Section 12.12. GOVERNING LAW..................................................66

Section 12.13. Counterparts...................................................66

Section 12.14. No Petition....................................................67

Section 12.15  Provision of Information to Rating Agencies....................67

                                       iv
<Page>

            This MASTER INDENTURE, dated as of April 25, 2000 (as amended,
modified or supplemented from time to time, the "INDENTURE"), by and between
APPLE RIDGE FUNDING LLC, a limited liability company organized under the laws of
the State of Delaware (together with its permitted successors and assigns, the
"ISSUER"), BANK ONE, NATIONAL ASSOCIATION, a national banking association, as
indenture trustee (herein, together with its successors in the trusts hereunder,
the "INDENTURE TRUSTEE"), and THE BANK OF NEW YORK, a New York state banking
corporation, as paying agent, authentication agent and transfer agent and
registrar (together with its permitted successors and assigns, "BNY"). This
Indenture may be supplemented at any time and from time to time by an indenture
supplement in accordance with Article X hereof (each, an "INDENTURE
SUPPLEMENT"). If a conflict exists between the terms and provisions of this
Indenture and any Indenture Supplement, the terms and provisions of the
Indenture Supplement shall be controlling with respect to the related Series.

                              PRELIMINARY STATEMENT

            The Issuer has duly authorized the execution and delivery of this
Indenture to provide for issuances from time to time of its asset backed notes
as provided in this Indenture. All covenants and agreements made by the Issuer
herein are for the benefit and security of the Noteholders. The Issuer is
entering into this Indenture, and the Indenture Trustee is accepting the trusts
created hereby, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged.

            Simultaneously with the delivery of this Indenture the Issuer is
entering into the Transfer and Servicing Agreement (the "TRANSFER AND SERVICING
AGREEMENT") with Apple Ridge Service Corporation, a Delaware corporation, as
transferor (the "TRANSFEROR"), Cendant Mobility Financial Corporation ("CMF"), a
Delaware corporation, as an originator, and Cendant Mobility Services
Corporation ("CMSC"), a Delaware corporation, as an originator and as servicer
(in such capacity, the "SERVICER"), pursuant to which (a) the Transferor will
convey to the Issuer all of its right, title and interest in, to and under the
Pledged Assets and (b) the Servicer will agree to service the Pledged Assets and
make collections thereon on behalf of the Noteholders. The Pledged Assets were,
and in the future will be, originated by either CMSC or Cendant Mobility
Financial Corporation (each an "ORIGINATOR"). The Pledged Assets originated by
CMSC will be purchased by CMF pursuant to the Purchase Agreement. The Pledged
Assets originated by CMF, together with those originated by CMSC and purchased
by CMF, will be purchased by the Transferor pursuant to the Receivables Purchase
Agreement.

            Under the Transfer and Servicing Agreement, additional Pledged
Assets from time to time will automatically be conveyed thereunder to the Issuer
without any further action by either Originator or the Transferor.

                                 GRANTING CLAUSE

            The Issuer hereby Grants to the Indenture Trustee, for the benefit
of the Holders of the Notes, all of the Issuer's right, title and interest,
whether now owned or hereafter acquired, in, to and under all of the following:
(i) all Receivables; (ii) all Related Property; (iii) all Pool

<Page>

Collections; (iv) the Collection Account (excluding any subaccount of the
Collection Account established pursuant to an Indenture Supplement), the
Distribution Account, and all money, instruments, investment property and other
property credited to or deposited in such accounts; (v) the PHH Guarantee, the
Transfer and Servicing Agreement, the Receivables Purchase Agreement and the
Purchase Agreement; (vi) all accounts, money, chattel paper, investment
property, instruments, documents, deposit accounts, certificates of deposit,
letters of credit, advices of credit, general intangibles and goods consisting
of, arising from or relating to any of the foregoing; (vii) all other property
of the Issuer; and (viii) all proceeds of the foregoing (collectively, the
"PLEDGED ASSETS"); PROVIDED, HOWEVER, that (1) the Pledged Assets shall not
include the following, and the following shall not be subject to the lien of
this Indenture: (a) Liquidated Receivables, (b) any Receivable as to which CMSC
or CMF has paid a CMSC Noncomplying Asset Adjustment or a CMF Noncomplying Asset
Adjustment, as applicable, and all proceeds thereof, (c) any amounts paid to the
Issuer pursuant to Section 8.04(d) and (d) all proceeds of clauses (a) through
(c) of this proviso. Notwithstanding any other provision of this Indenture, the
property described in the preceding proviso and the release thereof to the
Issuer shall not be subject to the provisions of Section 8.05 or 12.01(b).

                                   ARTICLE I

                                   DEFINITIONS

            Section 1.01. DEFINITIONS

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

            "ACT" shall have the meaning specified in Section 12.03(a).

            "ADJUSTED AGGREGATE RECEIVABLE BALANCE" shall mean, as of any date
of determination, the EXCESS of (a) the Aggregate Receivable Balance on such
date OVER (b) the Aggregate Adjustment Amount on such date.

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

            "AGGREGATE ADJUSTMENT AMOUNT" shall mean, as of any date of
determination, an amount equal to the SUM of (a) the Overconcentration Amount
PLUS (b) the Excess Longer Term Receivable Amount PLUS (c) the Excess Special
Homes Receivable Amount PLUS (d) the aggregate Unpaid Balance of all Eligible
Receivables relating to Homes that have been owned by

                                       2
<Page>

CMSC or CMF, as the case may be, for more than 540 days as of the last day of
the Monthly Period immediately preceding the first day of the Interest Period in
which such date occurs.

            "AGGREGATE EMPLOYER BALANCE" shall mean, with respect to any
Employer at any time, the aggregate Unpaid Balance of the Pool Receivables of
such Employer, calculated in the following manner: the Unpaid Balance will be
REDUCED (without duplication), by (a) in the case of any Receivables of such
Employer, the amount of any funds received on account of or otherwise in
connection therewith, including the amount of any Advance Payment made by such
Employer with respect to such Receivables or any other obligations of such
Employer, and the amount of Home Sale Proceeds received with respect to the
related Home (to the extent that they have not previously been applied to reduce
the Unpaid Balance of the related Receivable), (b) in the case of any
Receivables of such Employer (including without limitation any Self-Funding
Obligor), the amount of any net gains on sales of Homes or other amounts
(including without limitation rebates for referral fees, if any, and if allowed
by law) that have not yet been remitted to such Employer and (c) in the case of
all Receivables owed by such Employer, the Unpaid Balance of any Advance Billing
Receivables of such Employer.

            "AGGREGATE RECEIVABLE BALANCE" shall mean, as of any date of
determination, the SUM of the Aggregate Employer Balances with respect to each
Employer under the Pool Relocation Agreements, MINUS the aggregate Unpaid
Balance of all Pool Receivables that are not Eligible Receivables, MINUS the
aggregate Unpaid Balance of all Defaulted Receivables in each case to only the
extent such amounts have not already been subtracted in calculating the
Aggregate Employer Balances.

            "AGGREGATE REQUIRED ASSET AMOUNT" shall mean, on any date of
determination, the SUM of the Required Asset Amounts with respect to each Series
of Notes.

            "AMORTIZATION EVENT" with respect to each Series of Notes shall be
specified in the related Indenture Supplement.

            "AMORTIZATION PERIOD" shall mean, with respect to any Series, a
period following the Revolving Period during which Pool Collections are
distributed to Noteholders, which shall be a controlled amortization period, a
rapid amortization period or other amortization period, in each case as defined
with respect to such Series in the related Indenture Supplement.

            "APPLICABLE SERIES ENHANCER" means each Series Enhancer except to
the extent otherwise provided in the relevant Indenture Supplement.

            "ASSET DEFICIENCY" shall mean, on any date of determination, the
amount, if any, by which the Aggregate Required Asset Amount as of such date
EXCEEDS the Adjusted Aggregate Receivable Balance as of such date.

            "AUTHENTICATION AGENT" shall mean BNY and any successor thereto.

            "AUTHORIZED OFFICER" shall mean:

            (a) with respect to the Issuer, any officer of the Issuer who is
authorized to act for the Issuer in matters relating to the Issuer and who is
identified on the list of Authorized

                                       3
<Page>

Officers (containing the specimen signature of each such Person) delivered by
the Issuer to the Indenture Trustee on the initial Closing Date (as such list
may be modified or supplemented from time to time thereafter); or

            (b) with respect to the Servicer, any officer of the Servicer who is
authorized to act for the Servicer in matters relating to the Servicer and who
is identified on the list of Authorized Officers (containing the specimen
signature of each such Person) delivered by the Servicer to the Indenture
Trustee on the initial Closing Date (as such list may be modified or
supplemented from time to time thereafter).

            "BENEFICIAL OWNER" shall mean, with respect to a Book-Entry Note,
the Person who is the owner of such Book-Entry Note, as reflected on the books
of the Clearing Agency or Foreign Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency or Foreign Clearing Agency
(directly as a Clearing Agency Participant or as an Indirect Participant, in
accordance with the rules of such Clearing Agency or Foreign Clearing Agency).

            "BNY" shall have the meaning set forth in the Preliminary Statement.

            "BOOK-ENTRY NOTES" shall mean beneficial interests in the Notes,
ownership and transfers of which shall be made through book entries by a
Clearing Agency or Foreign Clearing Agency as described in Section 2.11.

            "CLEARSTREAM BANKING" shall mean Clearstream Banking, SOCIETE
ANONYME, a professional depository incorporated under the laws of Luxembourg,
and its successors.

            "CLEARING AGENCY" shall mean an organization registered as a
"clearing agency" pursuant to Section 17A of the Securities Exchange Act of
1934, as amended, and serving as clearing agency for a Series of Book-Entry
Notes.

            "CLEARING AGENCY PARTICIPANT" shall mean a broker, dealer, bank,
other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities deposited
with the Clearing Agency.

            "CLOSING DATE" shall mean, with respect to any Series, the closing
date specified in the related Indenture Supplement.

            "CMF" shall have the meaning set forth in the preliminary statements
to this Indenture.

            "CMSC" shall have the meaning set forth in the preliminary statement
to this Indenture.

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

            "COMMISSION" shall mean the Securities and Exchange Commission and
its successors in interest.

                                       4
<Page>

            "CORPORATE TRUST OFFICE" shall mean the principal office of the
Indenture Trustee at which at any particular time its corporate trust business
shall be administered, which office on the date of the execution of this
Agreement is located at 1 Bank One Plaza, Suite IL1-0126, Chicago, IL 60670-0126
or at such other address as the Indenture Trustee may designate from time to
time by notice to the Noteholders and the Issuer, or the principal corporate
trust office of any successor Indenture Trustee (of which address any successor
Indenture Trustee shall notify the Noteholders and the Issuer).

            "DATE OF PROCESSING" shall mean, with respect to any transaction,
the date on which such transaction is first recorded on the Servicer's computer
master file maintained for the purpose of recording Pool Collections.

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

            "DEFEASANCE" shall have the meaning specified in Section 11.01(a).

            "DEFEASED SERIES" shall have the meaning specified in Section
11.01(a).

            "DEFINITIVE NOTES" shall mean Notes in definitive, fully registered
form.

            "DEPOSIT DATE" shall mean each day on which the Servicer deposits
Pool Collections in the Collection Account in accordance with Section 3.02 of
the Transfer and Servicing Agreement.

            "DISTRIBUTION ACCOUNT" shall have the meaning specified in Section
8.03(b).

            "DISTRIBUTION DATE" shall mean, with respect to any Series, the date
specified in the applicable Indenture Supplement.

            "DOLLARS," "$" or "U.S. $" shall mean United States dollars.

            "DTC" shall mean The Depository Trust Company.

            "ELIGIBLE RECEIVABLE" shall have the meaning specified in the
Receivables Purchase Agreement.

            "ENHANCEMENT AGREEMENT" shall mean any agreement, instrument or
document governing the terms of any Series Enhancement or pursuant to which any
Series Enhancement is issued or outstanding.

            "EUROCLEAR OPERATOR" shall mean Morgan Guaranty Trust Company of New
York, Brussels office, as operator of the Euroclear System.

            "EVENT OF DEFAULT" shall have the meaning specified in Section 5.01.

            "EXCESS LONGER TERM RECEIVABLE AMOUNT" shall mean, as of any date of
determination, an amount equal to the excess, if any, of (a) the aggregate
Unpaid Balance of all

                                       5
<Page>

Billed Receivables that are payable more than 35 days after the original invoice
date of such Billed Receivable as of the last day of the Monthly Period
immediately preceding the first day of the Interest Period in which such date
occurs OVER (b) an amount equal to 40% of the aggregate Unpaid Balance of all
Billed Receivables included in the Aggregate Receivable Balance as of such last
day of such Monthly Period.

            "EXCESS SPECIAL HOMES RECEIVABLE AMOUNT" shall mean, as of any date
of determination, an amount equal to the EXCESS, if any, of (a) the aggregate
Unpaid Balance of all Eligible Receivables arising from Equity Payments or
Mortgage Payoffs relating to any Home that qualifies as a "Special Home
Transaction" (as such term is defined in the applicable Home Sale Service
Supplement), reduced by any Advance Payments identified as relating to such
Homes, as of the close of business on the last day of the Monthly Period
immediately preceding the first day of the Interest Period in which such date
occurs OVER (b) an amount equal to 10% of the Aggregate Receivable Balance as of
such last day of such Monthly Period.

            "FOREIGN CLEARING AGENCY" shall mean Clearstream Banking and the
Euroclear Operator.

            "GLOBAL NOTE" shall have the meaning specified in Section 2.14.

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

            "INDENTURE" shall have the meaning set forth in the introductory
paragraph to this Indenture.

            "INDENTURE SUPPLEMENT" shall have the meaning set forth in the
introductory paragraph to this Indenture.

            "INDENTURE TRUSTEE" shall have the meaning set forth in the
introductory paragraph of this Indenture.

            "INDEPENDENT" shall mean, when used with respect to any specified
Person, that the Person (a) is in fact independent of the Issuer, any other
obligor upon the Notes, the Transferor, CMF, CMSC and any Affiliate of any of
the foregoing Persons, (b) does not have any direct financial interest or any
material indirect financial interest in the outstanding equity or debt
securities of the Issuer, any such other obligor, the Transferor, CMF, CMSC or
any Affiliate of any of the foregoing Persons and (c) is not connected with the
Issuer, any such other obligor,

                                       6
<Page>

the Transferor, CMF, CMSC or any Affiliate of any of the foregoing Persons as an
officer, employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

            "INDEPENDENT CERTIFICATE" shall mean a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 12.01, made by
an Independent appraiser or other expert, and such opinion or certificate shall
state that the signer has read the definition of "Independent" in this Indenture
and that the signer is Independent within the meaning thereof.

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

            "INELIGIBLE RECEIVABLE" shall mean any Receivable which is not an
Eligible Receivable.

            "INDIRECT PARTICIPANT" shall mean Persons such as securities brokers
and dealers, banks and trust companies that clear or maintain a custodial
relationship with a participant of DTC, either directly or indirectly.

            "INSOLVENCY EVENT" shall mean, for any Person:

            (a) that such Person shall admit in writing its inability, or fail
      generally, to pay its debts as they become due; or

            (b) (i) a proceeding shall have been instituted in a court having
      jurisdiction in the premises seeking a decree or order for relief in
      respect of such Person in an involuntary case under any applicable
      bankruptcy, insolvency or other similar law now or hereafter in effect, or
      for the appointment of a receiver, liquidator, assignee, trustee,
      custodian, sequestrator, conservator or other similar official of such
      Person or for any substantial part of its property, or for the winding-up
      or liquidation of its affairs and (ii) either such proceedings shall
      remain undismissed or unstayed for a period of 60 days or any of the
      actions sought in such proceedings shall occur, PROVIDED that the grace
      period allowed for by this clause (ii) shall not apply to any proceeding
      instituted by an Affiliate of such Person in furtherance of any of the
      actions set forth in the preceding clause (i); or

            (c) the commencement by such Person of a voluntary case under any
      applicable bankruptcy, insolvency or other similar law now or hereafter in
      effect, or such Person's consent to the entry of an order for relief in an
      involuntary case under any such law, or consent to the appointment of or
      taking possession by a receiver, liquidator, assignee, trustee, custodian,
      sequestrator, conservator or other similar official of such Person or for
      any substantial part of its property, or any general assignment for the
      benefit of creditors; or

                                       7
<Page>

            (d) if such Person is a corporation or a limited liability company,
      such Person or any Subsidiary of such Person shall take any corporate or
      limited liability company action in furtherance of any of the actions set
      forth in the preceding clause (a), (b) or (c).

            "INTEREST PERIOD" with respect to any Series, shall have the meaning
set forth in the applicable Indenture Supplement.

            "INVESTMENT COMPANY ACT" shall mean the Investment Company Act of
1940, as amended.

            "ISSUER" shall have the meaning set forth in the introductory
paragraph to this Indenture.

            "ISSUER ORDER" shall mean a written order or request signed in the
name of the Issuer by any one of its Authorized Officers and delivered to the
Indenture Trustee or BNY, as the case may be.

            "LIQUIDATED RECEIVABLE" shall mean any Receivable the Unpaid Balance
of which has been reduced to zero, whether by payment of a CMSC Noncomplying
Asset Adjustment or a CMF Noncomplying Asset Adjustment or otherwise.

            "MAJORITY INVESTORS" shall mean Noteholders holding Notes evidencing
more than 50% of the Outstanding Amount.

            "MATERIAL ADVERSE EFFECT" shall mean, with respect to any event or
circumstance, a material adverse effect on (a) the business, financial
condition, operations or assets of the Issuer or any Transaction Party, (b) the
ability of the Issuer or any Transaction Party to perform its obligations under
any Transaction Document to which it is a party, (c) the validity or
enforceability of, or collectibility of, amounts payable by the Issuer or any
Transaction Party under any Transaction Document to which it is a party, (d) the
status, existence, perfection or priority of the interest of the Issuer or any
assignee thereof in the Pledged Assets, taken as a whole, in each case free and
clear of any Lien (other than a Permitted Lien) or (e) the validity,
enforceability or collectibility of all or any substantial portion of the
Pledged Assets

            "MODIFIED RECEIVABLE BALANCE" shall mean, for any Employer as of any
date of determination, an amount equal to the SUM of (a) the PRODUCT of (i) 50%
MULTIPLIED BY (ii) the SUM of the aggregate Unpaid Balance of all Eligible
Receivables of such Employer included in the Aggregate Employer Balance arising
from (A) Equity Payments PLUS (B) Mortgage Payoffs PLUS (C) Mortgage Payments
that are owing by such Employer PLUS (b) the aggregate Unpaid Balance of each
other Eligible Receivable of such Employer included in the Aggregate Employer
Balance, REDUCED (without duplication) by any Advance Payments and by the Unpaid
Balance of any Advance Billing Receivables of such Employer.

            "MOODY'S" shall mean Moody's Investors Service.

                                       8
<Page>

            "MONTHLY PERIOD" shall mean (i) a calendar month or (ii) with
respect to the initial Monthly Period, the period commencing on the Closing Date
with respect to the initial Series of Notes and ending on May 31, 2000.

            "NEW ISSUANCE" shall have the meaning specified in Section 2.10.

            "NOTE INTEREST RATE" shall mean, as of any date of determination and
with respect to any Series, the rate at which interest accrues on the Notes of
such Series (or formula on the basis of which such rate shall be determined)
specified therefor in the related Indenture Supplement.

            "NOTE REGISTER" shall have the meaning specified in Section 2.05.

            "NOTEHOLDER" or "HOLDER" shall mean the Person in whose name a Note
is registered on the Note Register or such other Person deemed to be a
"Noteholder" or "Holder" in any related Indenture Supplement.

            "NOTES" shall mean all Series of Notes issued by the Issuer pursuant
to this Indenture and the applicable Indenture Supplement.

            "NYUCC" shall have the meaning specified in Section 2.05.

            "OBLIGOR LIMIT" shall mean, as of any date of determination, (a)
with respect to each Obligor having an unsecured long-term debt rating (or
equivalent shadow rating) of "AAA" from S&P and "Aaa" from Moody's, 5% of the
Aggregate Receivable Balance, (b) with respect to each Obligor having an
unsecured long-term debt rating (or equivalent shadow rating) lower than "AAA"
but equal to or higher than "AA-" from S&P and lower than "Aaa" but equal to or
higher than "Aa3" from Moody's, 4% of the Aggregate Receivable Balance, (c) with
respect to each Obligor having an unsecured long-term debt rating (or equivalent
shadow rating) lower than "AA-" but equal to or higher than "A-" from S&P and
lower than "Aa3" but equal to or higher than "A3" from Moody's, 3% of the
Aggregate Receivable Balance, (d) with respect to each Obligor having an
unsecured long-term debt rating (or equivalent shadow rating) lower than "A-"
but equal to or higher than "BBB-" from S&P and lower than "A3" but equal to or
higher than "Baa3" from Moody's, 2% of the Aggregate Receivable Balance and (e)
with respect to each Obligor either not having an unsecured long-term debt
rating from S&P or Moody's or having an unsecured long-term debt rating (or
equivalent shadow rating) lower than "BBB-" from S&P or lower than "Baa3" from
Moody's, 1% of the Aggregate Receivable Balance. If an Obligor's unsecured
long-term debt rating (or equivalent shadow rating) results in two different
Obligor Limits (because of differences in the long-term unsecured debt ratings
assigned by each of the Rating Agencies), the Obligor Limit for such Obligor
will be the lower Obligor Limit.

            "OFFICER'S CERTIFICATE" shall mean, unless otherwise specified in
this Agreement, a certificate delivered to the Indenture Trustee or BNY, as the
case may be, signed by any Authorized Officer of the Issuer, the Transferor, CMF
or the Servicer, as applicable, under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 12.01.

                                       9
<Page>

            "OPINION OF COUNSEL" shall mean a written opinion of counsel, who
may be counsel for, or an employee of, the Person providing the opinion and who
shall be reasonably acceptable to the Indenture Trustee and each Applicable
Series Enhancer, PROVIDED that a Tax Opinion shall be an opinion of nationally
recognized tax counsel.

            "ORIGINATOR" shall have the meaning set forth in the preliminary
statement to this Indenture.

            "OUTSTANDING" shall mean, with respect to the Notes as of any date
of determination, all Notes authenticated and delivered under this Indenture
except:

            (i) Notes previously cancelled by the Transfer Agent and Registrar
      or delivered to the Transfer Agent and Registrar for cancellation;

            (ii) Notes or portions thereof the payment for which money in the
      necessary amount has been previously deposited with the Indenture Trustee
      or any Paying Agent in trust for the Holders of such Notes (PROVIDED,
      HOWEVER, that if such Notes are to be redeemed, notice of such redemption
      has been duly given pursuant to the applicable Indenture Supplement or
      provision therefor, satisfactory to the Indenture Trustee, has been made);
      and

            (iii) Notes in exchange for or in lieu of other Notes that have been
      authenticated and delivered pursuant to this Indenture unless proof
      satisfactory to the Indenture Trustee is presented that any such Notes are
      held by a protected purchaser;

PROVIDED that in determining whether the Holders of the requisite Outstanding
Amount of the Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Notes owned by the Issuer, any other
obligor on the Notes, the Transferor, the Servicer or any Affiliate of any of
the foregoing Persons shall be disregarded and deemed not to be Outstanding
(except that, in determining whether the Indenture Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Notes that a Responsible Officer of the Indenture Trustee
actually knows to be so owned shall be so disregarded). Notes so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Indenture Trustee the pledgee's right so
to act with respect to such Notes and that the pledgee is not the Issuer, any
other obligor on the Notes, the Transferor, CMF, the Servicer or any Affiliate
of any of the foregoing Persons. In making any such determination, the Indenture
Trustee may rely on the representations of the pledgee and shall not be required
to undertake any independent investigation.

            "OUTSTANDING AMOUNT" shall mean the aggregate Series Outstanding
Amount of all Series of Notes Outstanding at the date of determination.

            "OVERCONCENTRATION AMOUNT" shall mean, as of any date of
determination, an amount equal to the SUM of:

            (a) the GREATER of (i) the EXCESS, if any, of (A) the aggregate
      Modified Receivable Balances owing by (or, if less, the Obligor Limits of)
      the Obligors in respect

                                       10
<Page>

      of the five largest aggregate Modified Receivable Balances as of the last
      day of the Monthly Period immediately preceding the first day of the
      Interest Period in which such date of determination occurs, OVER (B) an
      amount equal to 15% of the Aggregate Receivable Balance as of such last
      day of such Monthly Period and (ii) the EXCESS, if any, of (A) the
      aggregate Modified Receivable Balance owing by (or, if less, the Obligor
      Limits of) the Obligors in respect of the ten largest aggregate Modified
      Receivable Balances as of such last day of such Monthly Period, OVER (B)
      an amount equal to 25% of the Aggregate Receivable Balance as of such last
      day of such Monthly Period, PLUS

            (b) the SUM of the aggregate amount, with respect to each Obligor,
      of the excess, if any, of (i) the aggregate Modified Receivable Balance
      owing by such Obligor as of such last day of such Monthly Period OVER (ii)
      the Obligor Limit with respect to such Obligor as of such last day of such
      Monthly Period.

            "PAYING AGENT" shall mean BNY and any successor thereto.

            "PERSON" shall mean any person or entity, including any individual,
corporation, limited liability company, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, governmental entity or
other entity of any nature.

            "PLEDGED ASSETS" shall have the meaning set forth in the granting
clause of this Indenture.

            "POOL COLLECTIONS" shall mean CMF Collections and CMSC Collections.

            "PRINCIPAL TERMS" shall mean, with respect to any Series, (a) the
name or designation; (b) the initial principal amount (or method for calculating
such amount) and the Series Outstanding Amount; (c) the Note Interest Rate for
the Notes of such Series (or method for the determination thereof); (d) the
payment date or dates and the date or dates from which interest shall accrue;
(e) the method for allocating Pool Collections to Noteholders and the method by
which the principal amount for the Notes of such Series shall amortize; (f) the
designation of any Series Accounts and the terms governing the operation of any
such Series Accounts; (g) the portion of the Servicing Fee allocable to such
Series; (h) the Series Enhancer and terms of any of Series Enhancement, if
applicable; (i) the terms on which the Notes of such Series may be exchanged for
Notes of another Series, repurchased or redeemed by the Issuer or remarketed to
other investors; (j) the maturity date; (k) the extent to which the Notes of
such Series will be issuable in temporary or permanent global form (and, in such
case, the depositary for such global note or notes, the terms and conditions, if
any, upon which such global note may be exchanged, in whole or in part, for
Definitive Notes, and the manner in which any interest payable on a temporary or
global note will be paid); (l) the priority of such Series with respect to any
other Series; (m) the Distribution Date; and (n) any other terms of such Series.

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

            "PURCHASE AGREEMENT" shall mean the purchase agreement dated as of
April 25, 2000, between CMSC and CMF, as amended from time to time.

                                       11
<Page>

            "QUALIFIED ACCOUNT" shall mean either (a) a segregated account with
a Qualified Institution or (b) a segregated trust account with the corporate
trust department of a depository institution organized under the laws of the
United States or any one of the states thereof, including the District of
Columbia (or any domestic branch of a foreign bank), and acting as a trustee for
funds deposited in such account, so long as any of the unsecured, unguaranteed
senior debt securities of such depository institution shall have a credit rating
from each Rating Agency in one of its generic credit rating categories that
signifies investment grade.

            "QUALIFIED INSTITUTION" shall mean (a) a depository institution,
which may include the Indenture Trustee (if it is a Paying Agent hereunder),
organized under the laws of the United States of America or any one of the
States thereof or the District of Columbia, the deposits in which are insured by
the Federal Deposit Insurance Corporation and that at all times has a short-term
unsecured debt rating of at least A-1 by Standard & Poor's and P-1 by Moody's or
(b) a depository institution acceptable to each Rating Agency.

            "RATING AGENCY" shall mean, with respect to any outstanding Series,
each rating agency selected by the Issuer to rate the Notes of such Series, as
specified in the applicable Indenture Supplement.

            "RATING AGENCY CONDITION" shall mean, with respect to any action,
that each Rating Agency shall have notified the Issuer, the Servicer, any Series
Enhancer and the Indenture Trustee in writing that such action will not result
in a reduction or withdrawal of the then existing rating of any outstanding
Series with respect to which it is a Rating Agency (both with and without giving
effect to any letter of credit, surety bond or insurance policy issued by any
Series Enhancer) or, with respect to any outstanding Series not rated by any
Rating Agency, such written consent as is specified in the Indenture Supplement
for such Series.

            "RECEIVABLES PURCHASE AGREEMENT" shall mean the receivables purchase
agreement dated as of April 25, 2000, between CMF and the Transferor, as amended
from time to time.

            "RECORD DATE" shall mean, with respect to any Distribution Date, the
last Business Day of the preceding Monthly Period, unless otherwise specified
for a Series in the related Indenture Supplement.

            "REDEMPTION DATE" shall mean, with respect to any Series, the date
the Notes of any Series are redeemed in accordance with the related Indenture
Supplement.

            "REQUIRED ASSET AMOUNT" shall mean, with respect to any Series of
Notes, the required asset amount for such Series of Notes as specified in the
related Indenture Supplement.

            "REVOLVING PERIOD" shall have, with respect to each Series, the
meaning specified in the related Indenture Supplement.

            "S&P" shall mean Standard & Poor's Ratings Services, a division of
The McGraw Hill Companies, Inc.

                                       12
<Page>

            "SERIES" shall mean any series of Notes issued pursuant to this
Indenture and the related Indenture Supplement.

            "SERIES ACCOUNT" shall mean any deposit, trust, securities, escrow
or similar account maintained for the benefit of the Noteholders of any Series,
as specified in any Indenture Supplement.

            "SERIES ENHANCEMENT" shall mean the rights and benefits provided to
the Issuer or the Noteholders of any Series pursuant to any letter of credit,
surety bond, cash collateral account, collateral invested amount, insurance
policy, spread account, reserve account, guaranteed rate agreement, maturity
liquidity facility, tax protection agreement, interest rate swap agreement,
interest rate cap agreement or other similar arrangement. The subordination of
any Series to another Series also shall be deemed to be a Series Enhancement.

            "SERIES ENHANCER" shall mean the Person or Persons providing any
Series Enhancement, other than (except to the extent otherwise provided with
respect to any Series in the Indenture Supplement for such Series) the
Noteholders of any Series that is subordinated to another Series.

            "SERIES ISSUANCE DATE" shall mean, with respect to any Series, the
date on which the Notes of such Series are to be originally issued in accordance
with Section 2.10 and the related Indenture Supplement.

            "SERIES OUTSTANDING AMOUNT" shall mean, with respect to any Series
of Notes, the amount specified as the "Series Outstanding Amount" in the related
Indenture Supplement.

            "SERIES PERCENTAGE" shall mean, with respect to any Series of Notes
and for any date, the percentage specified in the related Indenture Supplement.

            "SERVICER" shall have the meaning set forth in the preliminary
statement to this Indenture.

            "TAX OPINION" shall mean, with respect to any action, an Opinion of
Counsel to the effect that, for federal income tax purposes, (a) such action
will not adversely affect the tax characterization as debt of the Notes of any
outstanding Series that were characterized as debt at the time of their
issuance, (b) such action will not cause or constitute an event in which gain or
loss would be recognized by any Noteholder and (c) in connection with an
issuance of Notes pursuant to an Indenture Supplement, except as is otherwise
provided in the Indenture Supplement, the Notes of the Series established
pursuant to such Indenture Supplement will be properly characterized as debt.

            "TRANSACTION DOCUMENTS" shall mean, with respect to any Series of
Notes, the Purchase Agreement, the Receivables Purchase Agreement, the Transfer
and Servicing Agreement, the PHH Guarantee, this Indenture, the related
Indenture Supplement and any Enhancement Agreement.

            "TRANSFER AGENT AND REGISTRAR" shall mean BNY and any successor
thereto.

                                       13
<Page>

            "TRANSFER AND SERVICING AGREEMENT" shall mean the Transfer and
Servicing Agreement, dated as of April 25, 2000, among the Transferor, the
Servicer, CMF and the Issuer, as the same may be amended, supplemented or
otherwise modified from time to time.

            "TRANSFEROR" shall have the meaning set forth in the preliminary
statement to this Indenture.

            "TRUSTEE OFFICER" shall mean, with respect to the Indenture Trustee,
any officer assigned to the Corporate Trust Office, including any officer of the
Indenture Trustee having direct responsibility for the administration of the
applicable Transaction Documents, and also, with respect to a particular matter,
any other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.

            "UNMATURED AMORTIZATION EVENT" shall mean any occurrence or event
which, with the giving of notice, the passage of time or both, would constitute
an Amortization Event.

            Section 1.02. OTHER DEFINITIONAL PROVISIONS

            (a) With respect to any Series, all terms used herein and not
otherwise defined herein shall have meanings ascribed to them in the Purchase
Agreement, the Receivables Purchase Agreement or the Transfer and Servicing
Agreement.

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

            (c) As used in this Indenture and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Indenture or in any such certificate or other document, and
accounting terms partly defined in this Indenture or in any such certificate or
other document to the extent not defined, shall have the respective meanings
given to them under generally accepted accounting principles and as in effect on
the date of this Indenture. To the extent that the definitions of accounting
terms in this Indenture or in any such certificate or other document are
inconsistent with the meanings of such terms under generally accepted accounting
principles in the United States, the definitions contained in this Indenture or
in any such certificate or other document shall control.

            (d) Any reference to each Rating Agency shall only apply to any
specific rating agency if such rating agency is then rating any outstanding
Series.

            (e) Unless otherwise specified, references to any amount as on
deposit or outstanding on any particular date shall mean such amount at the
close of business on such day.

            (f) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Indenture shall refer to this Indenture as a
whole and not to any particular provision of this Indenture; references to any
subsection, Section, Schedule or Exhibit are references to subsections,
Sections, Schedules and Exhibits in or to this Indenture unless otherwise
specified; and the term "including" means "including without limitation."

                                       14
<Page>

                                   ARTICLE II

                                    THE NOTES

            Section 2.01. FORM GENERALLY.

            Any Series of Notes, together with the Authentication Agent's
certificate of authentication related thereto, shall be issued in fully
registered form without coupons, and shall be substantially in the form of an
exhibit to the related Indenture Supplement with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture or such Indenture Supplement, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon
as may be determined by the officers of the Issuer executing such Notes
consistently herewith, as evidenced by their execution of such Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note. The terms of any Notes
set forth in an exhibit to the related Indenture Supplement are part of the
terms of this Indenture, as applicable.

            The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods, all as determined by
the officers executing such Notes, as evidenced by such officers' execution of
such Notes.

            Each Note shall be dated as of the date of its authentication.

            Section 2.02. DENOMINATIONS.

            Except as otherwise specified in the related Indenture Supplement,
the Notes of each Series shall be issued in fully registered form in minimum
amounts of $250,000 and in integral multiples of $1,000 in excess thereof
(except that one Note of each Series may be issued in a different amount, so
long as such amount exceeds the applicable minimum denomination for such
Series), and shall be issued upon initial issuance as one or more Notes in an
aggregate original principal amount equal to the initial Series Outstanding
Amount for such Series.

            Section 2.03. EXECUTION, AUTHENTICATION AND DELIVERY.

            Each Note shall be executed by manual or facsimile signature on
behalf of the Issuer by an Authorized Officer.

            Notes bearing the manual or facsimile signature of an individual who
was authorized to sign on behalf of the Issuer at the time when such signature
was affixed shall not be rendered invalid, notwithstanding the fact that such
individual ceased to be so authorized prior to the authentication and delivery
of such Notes or does not hold such office at the date of issuance such Notes.

            At any time and from time to time after the execution and delivery
of this Indenture, the Issuer may deliver Notes executed by the Issuer to the
Authentication Agent for

                                       15
<Page>

authentication and delivery, and the Authentication Agent shall authenticate and
deliver such Notes as provided in this Indenture (with the designation provided
in the related Indenture Supplement) and not otherwise.

            No Note shall be entitled to any benefit under this Indenture or the
applicable Indenture Supplement or be valid or obligatory for any purpose,
unless there appears on such Note a certificate of authentication substantially
in the form provided for herein executed by or on behalf of the Authentication
Agent by the manual signature of a duly authorized signatory, and such
certificate of authentication on any Note shall be conclusive evidence, and the
only evidence, that such Note has been duly authenticated and delivered under
this Indenture.

            Section 2.04. AUTHENTICATION AGENT.

            (a) The Authentication Agent undertakes to perform such duties and
only such duties as are specifically set forth in this Indenture and any
Indenture Supplement and no implied covenants or obligations shall be read into
this Indenture or such Indenture Supplement against the Authentication Agent.
The Issuer may remove the Authentication Agent if the Issuer determines in its
sole discretion that the Authentication Agent shall have failed to perform its
obligations under this Indenture or any Indenture Supplement in any material
respect or for other good reason. The Authentication Agent shall be permitted to
resign upon 30 days' written notice to the Issuer. Upon the removal or
resignation of the Authentication Agent, the Issuer shall appoint a successor to
act as Authentication Agent. The Issuer shall notify the Indenture Trustee and
the Rating Agencies of the removal or resignation of the Authentication Agent
and the identity and location of the successor Authentication Agent.

            (b) Pursuant to the Transfer and Servicing Agreement, the Issuer
shall direct the Servicer to pay to BNY from time to time reasonable
compensation for its services and all reasonable out-of-pocket expenses incurred
or made by it, including costs of collection. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of BNY's
agents, counsel, accountants and experts. The Issuer shall cause the Servicer to
indemnify BNY against any and all loss, liability or expense (including the fees
and expenses of either in-house counsel or outside counsel, but not both)
incurred by it in connection with the performance of its duties hereunder and
under any Indenture Supplement. BNY shall notify the Issuer and the Servicer
promptly of any claim for which it may seek indemnity. Failure by BNY to so
notify the Issuer and the Servicer shall not relieve the Issuer of its
obligations hereunder unless such loss, liability or expense could have been
avoided with such prompt notification and then only to the extent of such loss,
expense or liability which could have been so avoided. Neither the Issuer nor
the Servicer need reimburse any expense or indemnify against any loss, liability
or expense incurred by BNY through BNY's own willful misconduct, negligence or
bad faith.

            (c) The provisions of Sections 6.01, 6.03, 6.04 and 6.05 shall be
applicable to the Authentication Agent.

            (d) Pursuant to any appointment made under this Section 2.04, the
Notes may have endorsed thereon, in lieu of or in addition to the Authentication
Agent's certificate of authentication, an alternative certificate of
authentication in substantially the following form:

                                       16
<Page>

      "This is one of the Notes described in the within-mentioned Agreement.

                                       THE BANK OF NEW YORK,
                                            as Authentication Agent

                                       By:
                                          --------------------------------------
                                                 Authorized Signatory"

            Section 2.05. REGISTRATION OF AND LIMITATIONS ON TRANSFER AND
EXCHANGE OF NOTES.

            The Transfer Agent and Registrar shall keep a register (the "NOTE
REGISTER") in which the Transfer Agent and Registrar shall provide for the
registration of Notes and the registration of transfers of Notes. Upon any
resignation of any Transfer Agent and Registrar, the Issuer shall promptly
appoint a successor or, if it elects not to make such an appointment, assume the
duties of Transfer Agent and Registrar. The Issuer shall notify the Indenture
Trustee of the identity and location of any successor Transfer Agent and
Registrar.

            The Indenture Trustee shall have the right to inspect the Note
Register at all reasonable times and to obtain copies thereof, and the Indenture
Trustee shall have the right to rely upon a certificate executed on behalf of
the Transfer Agent and Registrar by an officer thereof as to the names and
addresses of the Noteholders and the principal amounts and numbers of such
Notes.

            Upon surrender for registration of transfer of any Note at the
office or agency of the Transfer Agent and Registrar to be maintained as
provided in Section 3.02(j), if the requirements of Section 8-401(a) of the New
York Uniform Commercial Code (the "NYUCC") are met and any applicable
requirements for transfer set forth in the related Indenture Supplement are
satisfied, the Issuer shall execute, and upon receipt of such surrendered Note
the Authentication Agent shall authenticate and deliver to the Noteholder, in
the name of the designated transferee or transferees, one or more new Notes (of
the same Series) in any authorized denominations of like aggregate principal
amount.

            At the option of a Noteholder, Notes may be exchanged for other
Notes of the same Series, in any authorized denominations and of like aggregate
principal amount, upon surrender of such Notes to be exchanged at the office or
agency of the Transfer Agent and Registrar. Whenever any Notes are so
surrendered for exchange, if the requirements of Section 8-401(a) of the NYUCC
are met, the Issuer shall execute, and upon receipt of such surrendered Note the
Authentication Agent shall authenticate and deliver to the Noteholder, the Notes
that the Noteholder making the exchange is entitled to receive.

            All Notes issued upon any registration of transfer or exchange of
Notes shall evidence the same obligations, evidence the same debt, and be
entitled to the same rights and

                                       17
<Page>

privileges under this Indenture and the related Indenture Supplement as the
Notes surrendered upon such registration of transfer or exchange.

            Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in a form satisfactory to the Transfer Agent and Registrar duly
executed by, the Noteholder thereof or its attorney-in-fact duly authorized in
writing, and by such other documents as the Transfer Agent and Registrar may
reasonably require.

            The registration of transfer of any Note shall be subject to the
additional requirements, if any, set forth in the related Indenture Supplement.

            No service charge shall be made for any registration of transfer or
exchange of Notes, but the Issuer or the Transfer Agent and Registrar may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of such Notes.

            All Notes surrendered for registration of transfer or exchange shall
be cancelled by the Transfer Agent and Registrar and disposed of by the Transfer
Agent and Registrar in accordance with its customary procedures. The Transfer
Agent and Registrar shall dispose of any Global Note upon its exchange in full
for Definitive Notes (of the same Series) in accordance with its customary
procedures.

            The preceding provisions of this section notwithstanding, the Issuer
shall not be required to make, and the Transfer Agent and Registrar need not
register, transfers or exchanges of Notes for a period of 20 days preceding the
due date for any payment with respect to the Notes.

            If and so long as any Series of Notes are listed on the Luxembourg
Stock Exchange and such exchange shall so require, the Transfer Agent and
Registrar shall, at the discretion of the Issuer, appoint a co-transfer agent
and registrar in Luxembourg or another European city. Any reference in this
Agreement to the Transfer Agent and Registrar shall include any such co-transfer
agent and registrar unless the context otherwise requires. The Transfer Agent
and Registrar shall enter into any appropriate agency agreement with any
co-transfer agent and registrar not a party to this Indenture, that will
implement the provisions of this Indenture that relate to such agent.

            Section 2.06 MUTILATED, DESTROYED, LOST OR STOLEN NOTES.

            If (a) any mutilated Note is surrendered to the Transfer Agent and
Registrar, or the Transfer Agent and Registrar receives evidence to its
reasonable satisfaction of the destruction, loss or theft of any Note and (b) in
the case of a destroyed, lost or stolen Note there is delivered to the Transfer
Agent and Registrar such security or indemnity as may be required by it to hold
the Issuer and the Transfer Agent and Registrar harmless and the requirements of
Section 8-405 of the NYUCC are met, then the Issuer shall execute, and the
Authentication Agent shall authenticate and deliver, a replacement Note of like
tenor (including the same date of issuance) and principal amount, bearing a
number not contemporaneously outstanding in

                                       18
<Page>

exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note;
PROVIDED, HOWEVER, that if any such mutilated, destroyed, lost or stolen Note
shall have become, or within seven days shall be, due and payable, or shall have
been selected or called for redemption, the Issuer may pay such Note without
surrender thereof instead of issuing a replacement Note, except that any
mutilated Note shall be surrendered. After the delivery of such replacement Note
or payment of a destroyed, lost or stolen Note pursuant to the proviso to the
preceding sentence, if a protected purchaser of the original Note in lieu of
which such replacement Note was issued presents such original Note for payment,
the Issuer and the Transfer Agent and Registrar shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person other than a
protected purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Transfer Agent and Registrar in connection
therewith.

            Upon the issuance of any replacement Note under this Section 2.06,
the Issuer or the Transfer Agent and Registrar may require the payment by the
Holder of such Note of a sum sufficient to cover any tax or other governmental
charge that may be imposed with respect thereto and any other reasonable
expenses (including the fees and expenses of the Transfer Agent and Registrar)
in connection therewith.

            Every replacement Note issued in replacement of any mutilated,
destroyed, lost or stolen Note pursuant to this Section 2.06 shall constitute
complete and indefeasible evidence of an obligation of the Issuer as if
originally issued, whether or not the mutilated, destroyed, lost or stolen Note
shall be found at any time, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Notes duly issued
hereunder.

            The provisions of this Section 2.06 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

            Section 2.07 PERSONS DEEMED OWNERS.

            Unless otherwise specified in the applicable Indenture Supplement,
prior to due presentment for registration of transfer of any Note, the Issuer,
the Indenture Trustee, the Paying Agent, the Authentication Agent, the Transfer
Agent and Registrar and any agent of the foregoing shall treat the Person in
whose name any Note is registered as the owner of such Note for all purposes of
this Indenture and the applicable Indenture Supplement, whether or not such Note
is overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent, the
Authentication Agent, the Transfer Agent and Registrar nor any agent of the
foregoing shall be affected by any notice to the contrary.

            Section 2.08. PAYING AGENT.

            (a) The Paying Agent shall have the revocable power to withdraw
funds and make distributions to Noteholders from the appropriate account or
accounts maintained for the benefit of Noteholders as specified in this
Indenture or the related Indenture Supplement for any Series. The Issuer may
revoke such power and remove the Paying Agent if the Issuer determines

                                       19
<Page>

in its sole discretion that the Paying Agent shall have failed to perform its
obligations under this Indenture in any material respect or for other good
cause. The Paying Agent shall be permitted to resign upon 30 days' written
notice to the Issuer. Upon the removal or resignation of the Paying Agent, the
Issuer shall appoint a successor to act as Paying Agent (which successor shall
be a bank or trust company). Any reference in this Indenture to the Paying Agent
shall include any co-paying agent unless the context requires otherwise. The
Issuer shall notify the Indenture Trustee, each Applicable Series Enhancer and
the Rating Agencies of the removal or the resignation of any Paying Agent and
the identity and location of the successor Paying Agent.

            (b) If and so long as any Series of Notes are listed on the
Luxembourg Stock Exchange or other stock exchange and such exchange shall so
require, the Paying Agent shall, at the discretion of the Issuer, appoint a
co-paying agent in Luxembourg or other city or country as may be required by
such other stock exchange. The Paying Agent shall enter into an appropriate
agency agreement with any co-paying agent not a party to this Indenture, which
will implement the provisions of this Indenture that relate to such agent.

            (c) The Paying Agent agrees that it will:

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

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

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

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

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

            Section 2.09 CANCELLATION.

            All Notes surrendered for payment, registration of transfer,
exchange or redemption shall, if surrendered to any Person other than the
Transfer Agent and Registrar, be

                                       20
<Page>

delivered to the Transfer Agent and Registrar and shall be promptly cancelled by
it. The Issuer may at any time deliver to the Transfer Agent and Registrar for
cancellation any Notes previously authenticated and delivered hereunder that the
Issuer may have acquired in any lawful manner whatsoever, and all Notes so
delivered shall be promptly cancelled by the Transfer Agent and Registrar. No
Notes shall be authenticated in lieu of or in exchange for any Notes cancelled
as provided in this Section 2.09, except as expressly permitted by this
Indenture. All cancelled Notes held by the Transfer Agent and Registrar shall be
disposed of by the Transfer Agent and Register in accordance with its customary
procedures.

            Section 2.10. NEW ISSUANCES.

            (a) Pursuant to one or more Indenture Supplements, the Issuer may
from time to time issue one or more new Series of Notes (a "NEW ISSUANCE"). The
Notes of all outstanding Series shall be equally and ratably entitled to the
benefits of this Indenture without preference, priority or distinction, all in
accordance with the terms and provisions of this Indenture and the applicable
Indenture Supplement, except as provided in the related Indenture Supplement
with respect to any Series. Interest on the Notes of all outstanding Series
shall be paid on each Distribution Date therefor as specified in the Indenture
Supplement relating to such outstanding Series. Principal of the Notes of each
outstanding Series shall be paid as specified in the Indenture Supplement
relating to such outstanding Series.

            (b) On or before the Series Issuance Date for any new Series of
Notes, the parties hereto shall execute and deliver an Indenture Supplement
specifying the Principal Terms of such Series. The terms of such Indenture
Supplement may modify or amend the terms of this Indenture solely as applied to
such new Series. The obligation of the Authentication Agent to authenticate and
deliver the Notes of any Series to or upon the order of the Issuer (other than
any Series issued pursuant to an Indenture Supplement dated as of the date
hereof) and the obligation of the Authentication Agent and the Indenture Trustee
to execute and deliver the related Indenture Supplement is subject to the
satisfaction of the following conditions:

                  (i) on or before the fifth day immediately preceding the
      Series Issuance Date, the Issuer shall have given the Indenture Trustee,
      the Servicer, the Paying Agent, the Authentication Agent, the Transfer
      Agent and Registrar, each Applicable Series Enhancer and each Rating
      Agency notice (unless such notice requirement is otherwise waived) of such
      issuance and the applicable Series Issuance Date;

                  (ii) the Issuer shall have delivered to the Authentication
      Agent and the Indenture Trustee any related Indenture Supplement, in form
      satisfactory to the Authentication Agent and the Indenture Trustee,
      executed by each party hereto other than the Authentication Agent and the
      Indenture Trustee;

                  (iii) the Issuer shall have delivered to the Indenture Trustee
      any related Enhancement Agreement executed by each of the parties thereto
      other than the Indenture Trustee;

                  (iv) the Rating Agency Condition shall have been satisfied
      with respect to such issuance;

                                       21
<Page>

                  (v) there shall have been delivered to the Indenture Trustee
      (with a copy to each Rating Agency) (A) the opinion required pursuant to
      Section 3.05(a) and (B) a Tax Opinion with respect to such issuance, dated
      the applicable Series Issuance Date.

                  (vi) the Issuer shall have delivered to the Indenture Trustee
      an Officer's Certificate of the Issuer to the effect that on the Series
      Issuance Date after giving effect to the issuance of such new Series of
      Notes, (A) neither an Amortization Event nor an Unmatured Amortization
      Event with respect to any Series of Notes nor an Asset Deficiency is
      continuing or will occur as the result of the issuance of such Series of
      Notes and (B) all conditions precedent provided in this Indenture and the
      related Indenture Supplement with respect to the authentication and
      delivery of the new Series of Notes have been complied with; and

                  (vii) the Issuer shall have delivered to the Authentication
      Agent a written order or request signed in the name of the Issuer by any
      one of its Authorized Officers and delivered to the Authentication Agent
      authorizing and directing the authentication and delivery of the Notes of
      such Series by the Authentication Agent.

            (c) Upon satisfaction of the above conditions, the Issuer shall
execute, and the Authentication Agent shall authenticate and deliver, the Notes
of such Series as provided in this Indenture and the applicable Indenture
Supplement. Neither the Authentication Agent nor the Indenture Trustee shall be
obligated to enter into any such Indenture Supplement that adversely affects the
Authentication Agent's or the Indenture Trustee's own rights, duties or
immunities under this Indenture.

            Section 2.11. BOOK-ENTRY NOTES.

            Unless otherwise provided in any related Indenture Supplement, upon
original issuance, each Series of Notes shall be issued in the form of
typewritten Notes representing the Book-Entry Notes to be delivered to the
depository specified in such Indenture Supplement (which shall be the Clearing
Agency or Foreign Clearing Agency), by or on behalf of such Series.

            Unless otherwise provided in the related Indenture Supplement, the
Notes of each Series initially shall be registered in the Note Register in the
name of the nominee of the Clearing Agency or Foreign Clearing Agency, as
applicable, for such Book Entry Notes and shall be delivered to the
Authentication Agent or, pursuant to such Clearing Agency's or Foreign Clearing
Agency's instructions, held by the Authentication Agent's agent as custodian for
the Clearing Agency or Foreign Clearing Agency.

            Unless and until Definitive Notes are issued under the limited
circumstances described in Section 2.13, no Beneficial Owner shall be entitled
to receive a Definitive Note representing such Beneficial Owner's interest in
such Note. Unless and until Definitive Notes have been issued to the Beneficial
Owners pursuant to Section 2.13:

                                       22
<Page>

            (a) the provisions of this Section 2.11 shall be in full force and
effect with respect to each such Series;

            (b) the Indenture Trustee shall be entitled to deal with the
Clearing Agency or Foreign Clearing Agency and the Clearing Agency Participants
for all purposes of this Indenture and any related Indenture Supplement
(including the payment of principal of and interest on the Notes of each such
Series) as the authorized representatives of the Beneficial Owners;

            (c) to the extent that the provisions of this Section 2.11 conflict
with any other provisions of this Indenture, the provisions of this Section 2.11
shall control with respect to each such Series;

            (d) the rights of Beneficial Owners of each such Series shall be
exercised only through the Clearing Agency or Foreign Clearing Agency and the
applicable Clearing Agency Participants and shall be limited to those
established by law and agreements between such Beneficial Owners and the
Clearing Agency or Foreign Clearing Agency and/or the Clearing Agency
Participants. Pursuant to the depository agreement applicable to a Series,
unless and until Definitive Notes of such Series are issued pursuant to Section
2.13, the initial Clearing Agency shall make book-entry transfers among the
Clearing Agency Participants and receive and transmit distributions of principal
and interest on the Notes to such Clearing Agency Participants; and

            (e) whenever this Indenture requires or permits actions to be taken
based upon instructions or directions of the Holders of Notes evidencing a
specified percentage of the Outstanding Amount, the Clearing Agency or Foreign
Clearing Agency shall be deemed to represent such percentage only to the extent
that it has received instructions to such effect from the Beneficial Owners
and/or Clearing Agency Participants owning or representing, respectively, such
required percentage of the beneficial interest in the Notes and has delivered
such instructions to the Indenture Trustee.

            Section 2.12. NOTICES TO CLEARING AGENCY OR FOREIGN CLEARING AGENCY.

            Unless and until Definitive Notes shall have been issued to
Beneficial Owners pursuant to Section 2.13, whenever a notice or other
communication to the Noteholders is required under this Indenture, the Indenture
Trustee shall give such notice or communication to the Clearing Agency or
Foreign Clearing Agency, as applicable, for distribution to Beneficial Owners
and shall have no obligation to distribute such notice or other communication
directly to the Beneficial Owners.

            Section 2.13. DEFINITIVE NOTES.

            If (i) (a) the Issuer advises the Indenture Trustee in writing that
the Clearing Agency or Foreign Clearing Agency is no longer willing or able to
properly discharge its responsibilities as Clearing Agency or Foreign Clearing
Agency with respect to the Book-Entry Notes of a given Series and (b) the Issuer
is unable to locate and reach an agreement on satisfactory terms with a
qualified successor, (ii) the Issuer, at its option, advises the Indenture
Trustee in writing that it elects to terminate the book-entry system through the
Clearing Agency

                                       23
<Page>

or Foreign Clearing Agency with respect to such Series or (iii) after the
occurrence of an Event of Default, Beneficial Owners aggregating a majority of
the Outstanding Amount of the Notes of such Series advise the Indenture Trustee
and the applicable Clearing Agency or Foreign Clearing Agency through the
applicable Clearing Agency Participants in writing that the continuation of a
book-entry system is no longer in the best interests of the Beneficial Owners of
such Series, the Indenture Trustee shall notify (with a copy to the Transfer
Agent and Registrar) all Beneficial Owners of such Series of the occurrence of
such event and of the availability of Definitive Notes to Beneficial Owners of
such Series requesting the same. Upon surrender to the Transfer Agent and
Registrar of the Notes of such Series accompanied by registration instructions
from the applicable Clearing Agency or Foreign Clearing Agency, the Issuer shall
execute, and the Authentication Agent shall authenticate and deliver, Definitive
Notes of such Series and shall recognize the registered holders of such
Definitive Notes as Noteholders under this Indenture. Neither the Issuer nor the
Indenture Trustee shall be liable for any delay in delivery of such
instructions, and the Issuer and the Indenture Trustee may conclusively rely on,
and shall be protected in relying on, such instructions. Upon the issuance of
Definitive Notes of such Series, all references herein to obligations imposed
upon or to be performed by the applicable Clearing Agency or Foreign Clearing
Agency shall be deemed to be imposed upon and performed by the Indenture Trustee
to the extent applicable with respect to such Definitive Notes, and the
Indenture Trustee and the Paying Agent shall recognize the registered holders of
the Definitive Notes of such Series as Noteholders of such Series hereunder.
Definitive Notes will be transferable and exchangeable at the offices of the
Transfer Agent and Registrar.

            Section 2.14. GLOBAL NOTE; EURO-NOTE EXCHANGE DATE.

            If specified in the related Indenture Supplement for any Series,
Notes initially may be issued in the form of a single temporary Global Note
(each, a "GLOBAL NOTE") in the denomination of the initial Series Outstanding
Amount and substantially in the form attached to the related Indenture
Supplement. Unless otherwise specified in the related Indenture Supplement, the
provisions of this Section 2.14 shall apply to such Global Note. Global Notes
shall be authenticated by the Authentication Agent upon the same conditions, in
substantially the same manner and with the same effect as the Definitive Notes.
Global Notes may be exchanged in the manner described in the related Indenture
Supplement for Definitive Notes.

            Section 2.15. REPRESENTATIONS AND COVENANTS OF PAYING AGENT,
AUTHENTICATION AGENT AND TRANSFER AGENT AND REGISTRAR.

            BNY, as Paying Agent, Authentication Agent and Transfer Agent and
Registrar, represents, warrants and covenants that:

            (a) BNY is a banking corporation duly organized and validly existing
under the laws of the State of New York;

            (b) BNY has full power and authority to deliver and perform this
Indenture and has taken all necessary action to authorize the execution,
delivery and performance by it of this Indenture and any Indenture Supplement;
and

                                       24
<Page>

            (c) Each of this Indenture and other Transaction Documents to which
it is a party has been duly executed and delivered by BNY and constitutes its
legal, valid and binding obligation in accordance with its terms.

                                   ARTICLE III

                   REPRESENTATIONS AND COVENANTS OF THE ISSUER

            Section 3.01. REPRESENTATIONS AND WARRANTIES OF THE ISSUER. The
Issuer hereby makes the representations and warranties set forth in this Section
3.01, in each case as of the date hereof, as of the Effective Date, as of each
Series Issuance Date and as of any other date specified in such representation
and warranty.

            (a) ORGANIZATION AND GOOD STANDING. The Issuer is a limited
liability company duly formed and validly existing in good standing under the
laws of the State of Delaware and has full power and authority to own its
properties and to conduct its business as such properties are presently owned
and such business is presently conducted.

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

            (c) POWER AND AUTHORITY: DUE AUTHORIZATION. The Issuer (i) has all
necessary limited liability company power and authority (A) to execute and
deliver this Indenture and the other Transaction Documents to which it is a
party, (B) to perform its obligations under this Indenture and the other
Transaction Documents to which it is a party and (C) to make a Grant of the
Pledged Assets to the Indenture Trustee on the terms and subject to the
conditions herein provided and (ii) has duly authorized by all necessary action
such Grant and the execution, delivery and performance of, and the consummation
of the transactions provided for in, this Indenture and the other Transaction
Documents to which it is a party.

            (d) BINDING OBLIGATIONS. This Indenture (i) constitutes a Grant of a
security interest (as defined in the NYUCC) in all of the Issuer's right, title
and interest in, to and under the Pledged Assets, free and clear of any Lien
(other than Permitted Liens) to the Indenture Trustee, which is enforceable with
respect to the existing Receivables owned by the Issuer and the proceeds thereof
upon execution and delivery of this Agreement and which will be enforceable with
respect to the Receivables hereafter acquired by the Issuer and the proceeds
thereof upon such acquisition by the Issuer and (ii) constitutes, and each other
Transaction Document to which the Issuer is a party when duly executed and
delivered will constitute, a legal, valid and binding obligation of the Issuer,
enforceable against the Issuer in accordance with its terms, except (A) as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and (B) as such enforceability may be limited by
general principles of

                                       25
<Page>

equity, regardless of whether such enforceability is considered in a proceeding
in equity or at law.

            (e) NO CONFLICT OR VIOLATION. The execution, delivery and
performance of, and the consummation of the transactions contemplated by, this
Indenture and the other Transaction Documents to be signed by the Issuer, and
the fulfillment of the terms hereof and thereof, will not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time or both) a material default under (A) the
certificate of formation or the limited liability company agreement of the
Issuer or (B) any material indenture, loan agreement, mortgage, deed of trust,
or other agreement or instrument to which the Issuer is a party or by which it
or any of its respective properties is bound, (ii) result in the creation or
imposition of any Lien (other than Permitted Liens) on any of the Pledged Assets
pursuant to the terms of any such material indenture, loan agreement, mortgage,
deed of trust, or other material agreement or instrument other than this
Agreement and the other Transaction Documents or (iii) conflict with or violate
any federal, state, local or foreign law (including without limitation,
Environmental Laws) or any decision, decree, order, rule or regulation
applicable to the Issuer or of any Governmental Authority having jurisdiction
over the Issuer, which conflict or violation described in this clause (iii),
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

            (f) LITIGATION AND OTHER PROCEEDINGS. (i) There is no action, suit,
proceeding or investigation pending or, to the best knowledge of the Issuer,
threatened, against the Issuer before any Governmental Authority and (ii) the
Issuer is not subject to any order, judgment, decree, injunction, stipulation or
consent order of or with any Governmental Authority that, in the case of either
of the foregoing clauses (i) and (ii), (A) asserts the invalidity of this
Agreement or any other Transaction Document, (B) seeks to prevent the Grant of
any Pledged Asset by the Issuer to the Indenture Trustee, the ownership or
acquisition by the Issuer of a material amount of Receivables or the
consummation of any of the transactions contemplated by this Agreement or any
other Transaction Document, (C) seeks any determination or ruling that, in the
reasonable judgment of the Issuer, would materially and adversely affect the
performance by the Issuer of its obligations under this Agreement or any other
Transaction Document or the validity or enforceability of this Agreement or any
other Transaction Document or (D) individually or in the aggregate for all such
actions, suits, proceedings and investigations could reasonably be expected to
have a Material Adverse Effect.

            (g) GOVERNMENTAL APPROVALS. Except where the failure to obtain or
make such authorization, consent, order, approval or action could not reasonably
be expected to have a Material Adverse Effect, all authorizations, consents,
orders and approvals of, or other actions by, any Governmental Authority that
are required to be obtained by the Issuer in connection with the Grant of the
Pledged Assets or the due execution, delivery and performance by the Issuer of
this Indenture or any other Transaction Document to which it is a party and the
consummation by the Issuer of the transactions contemplated by this Indenture
and the other Transaction Documents to which it is a party have been obtained or
made and are in full force and effect; PROVIDED, HOWEVER, that prior to
recordation pursuant to Section 8.3 of the Purchase Agreement or the sale of a
Home to an Ultimate Buyer, record title to such Home may remain in the name of
the related Transferred Employee and no recordation in real estate records of
the conveyance of

                                       26
<Page>

the related Home Purchase Contract or Home Sale Contract shall be made except as
otherwise required under Section 2.01(d)(i) of the Transfer and Servicing
Agreement.

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

            (i) TAXES. The Issuer has filed (or there have been filed on its
behalf as a member of a consolidated group) all tax returns and reports required
by law to have been filed by it and has paid all taxes, assessments and
governmental charges thereby shown to be owing by it, other than any such taxes,
assessments or charges that are being diligently contested in good faith by
appropriate proceedings, for which adequate reserves in accordance with GAAP
have been set aside on its books and that have not given rise to any Liens
(other than Permitted Liens); PROVIDED, HOWEVER, that as of the date of this
Indenture, the Issuer is a newly established entity and as such has not been
required to file any tax returns.

            (j) SOLVENCY. After giving effect to the transactions contemplated
by this Indenture and the other Transaction Documents, the Issuer is solvent and
able to pay its debts as they come due and has adequate capital to conduct its
business as presently conducted.

            (k) OFFICES. The principal place of business and chief executive
office of the Issuer is located at 40 Apple Ridge Road, Suite 4000, Danbury,
Connecticut 06810.

            (l) INVESTMENT COMPANY ACT. The Issuer is not, and is not controlled
by, an "investment company" registered or required to be registered under the
Investment Company Act.

            (m) ACCURACY OF FINANCIAL INFORMATION AND OTHER INFORMATION. All
balance sheets, all statements of operations and of cash flow and other
financial data that have been or shall hereafter be furnished by the Issuer to
the Indenture Trustee pursuant to Section 3.02 have been prepared in accordance
with generally accepted accounting principles (to the extent applicable) and
fairly present the financial condition of the Issuer as of the dates thereof.
All certificates, reports, statements, documents and other information furnished
to the Indenture Trustee by or on behalf of the Issuer pursuant to any provision
of this Indenture or any other Transaction Document, or in connection with or
pursuant to any amendment or modification of, or waiver under, this Indenture or
any other Transaction Document, shall, at the time the same are so furnished, be
complete and correct in all material respects on the date the same are furnished
to the Indenture Trustee.

            (n) SECURITY INTERESTS. No security agreement, financing statement
or equivalent security or lien instrument listing the Issuer as debtor covering
all or any part of the Pledged Assets is on file or of record in any
jurisdiction, except such as may have been filed, recorded or made by the Issuer
in favor of the Indenture Trustee on behalf of the Noteholders in connection
with this Indenture. This Indenture constitutes a valid and continuing Lien on
the

                                       27
<Page>

Pledged Assets in favor of the Indenture Trustee on behalf of the Noteholders,
which Lien will be prior to all other Liens (other than Permitted Liens), will
be enforceable as such as against creditors of and purchasers from the Issuer in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws affecting creditors' rights generally or by general equitable
principles, whether considered in a proceeding at law or in equity and by an
implied covenant of good faith and fair dealing. The Issuer has taken all action
necessary to perfect such security interest.

            Section 3.02. AFFIRMATIVE COVENANTS OF THE ISSUER. From the
Effective Date until the termination of this Indenture, the Issuer hereby agrees
that it will perform the covenants and agreements set forth in this Section
3.02.

            (a) FINANCIAL REPORTS BY THE ISSUER. As soon as available, but in
any event within 120 days after the end of each fiscal year of the Issuer, the
Issuer shall deliver to the Indenture Trustee and each Applicable Series
Enhancer and the Indenture Trustee shall forward to each Noteholder a copy of
the audited financial statements of the Issuer at the end of such year, prepared
by independent certified public accountants of nationally recognized standing.

            (b) BOOKS AND RECORDS. The Issuer shall keep proper books of record
and account in which full, true and correct entries shall be made of all
dealings and transactions in relation to the Pledged Assets and its business
activities in accordance with generally accepted accounting principles, and
shall permit the Indenture Trustee and each Applicable Series Enhancer to visit
and inspect any of its properties, to examine and make abstracts from any of its
books and records and to discuss its affairs, finances and accounts with its
officers, directors, employees and independent public accountants, all at such
reasonable times upon reasonable notice and as often as may reasonably be
requested.

            (c) NOTICE OF DEFAULTS AND EVENTS OF DEFAULT. The Issuer shall give
the Indenture Trustee, each Applicable Series Enhancer and the Rating Agencies
prompt written notice of each Default and Event of Default hereunder and the
occurrence of any Unmatured Amortization Event or Amortization Event with
respect to any Series of Notes and, immediately after obtaining knowledge of any
of the following occurrences, written notice of each default on the part of the
Servicer or the Transferor of its obligations under the Transfer and Servicing
Agreement and each default on the part of CMSC of its obligations under the
Purchase Agreement or CMF of its obligations under the Receivables Purchase
Agreement, as appropriate, and, in each case, the action, if any, being taken
with respect to such default.

            (d) MAINTENANCE OF EXISTENCE. The Issuer shall keep in full effect
its existence, rights and franchises as a limited liability company under the
laws of the State of Delaware (unless it becomes, or any successor Issuer
hereunder is or becomes, organized under the laws of any other State or of the
United States of America, in which case the Issuer will keep in full effect its
existence, rights and franchises under the laws of such other jurisdiction) and
shall obtain and preserve its qualification to do business in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Pledged Assets and each other
related instrument or agreement.

                                       28
<Page>

            (e) COMPLIANCE WITH LAWS. The Issuer will comply with the
requirements of all applicable laws, rules, regulations and orders of all
Governmental Authorities including without limitation Environmental Laws, a
violation of which, individually or in the aggregate for all such violations, is
reasonably likely to have a Material Adverse Effect.

            (f) RULE 144A INFORMATION. For so long as any of the Notes are
"restricted securities" within the meaning of Rule 144(a)(3) under the
Securities Act of 1933, as amended, the Issuer agrees to provide to any
Noteholder or Beneficial Owner, and to any prospective purchaser of Notes
designated by such Noteholder or Beneficial Owner upon the request of such
Noteholder or Beneficial Owner or prospective purchaser, any information
required to be provided to such holder or prospective purchaser to satisfy the
conditions set forth in Rule 144A(d)(4) under the Securities Act of 1933, as
amended.

            (g) ANNUAL TAX INFORMATION. Unless otherwise specified in the
related Indenture Supplement, on or before January 31 of each calendar year,
beginning with calendar year 2001, the Indenture Trustee or the Paying Agent
shall furnish to each Person who at any time during the preceding calendar year
was a Noteholder of a Series of Notes a statement prepared by or on behalf of
the Issuer containing the information that is necessary or desirable to enable
the Noteholders to prepare their tax returns. The obligations of the Issuer to
prepare and the Indenture Trustee or the Paying Agent to distribute such
information shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Indenture Trustee
or the Paying Agent pursuant to any requirements of the Code as from time to
time in effect.

            (h) STATEMENTS AS TO COMPLIANCE. The Issuer shall deliver to the
Indenture Trustee, within 120 days after the end of each fiscal year of the
Issuer (commencing within 120 days after the end of the fiscal year 2000), an
Officer's Certificate stating, as to the Authorized Officer signing such
Officer's Certificate, that

                  (i) a review of the activities of the Issuer during the
      12-month period ending at the end of such fiscal year (or in the case of
      the fiscal year ending December 31, 2000, the period from the initial
      Series Issuance Date to December 31, 2000) and of performance under this
      Indenture has been made under such Authorized Officer's supervision, and

                  (ii) to the best of such Authorized Officer's knowledge, based
      on such review, the Issuer has complied with all conditions and covenants
      under this Indenture throughout such year or, if there has been a default
      in its compliance with any such condition or covenant, specifying each
      such default known to such Authorized Officer and the nature and status
      thereof.

            (i) MAINTENANCE OF OFFICE OR AGENCY. The Issuer shall maintain an
office or agency within the Borough of Manhattan, City of New York where Notes
may be presented or surrendered for payment, where Notes may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Issuer in respect of the Notes and this

                                       29
<Page>

Indenture may be served. The Issuer hereby initially appoints the Transfer Agent
and Registrar at its office currently located at 101 Barclay Street, Floor 21
West, New York, New York 10286 (or at such other address as the Transfer Agent
and Registrar may designate from time to time by notice to the Issuer, the
Indenture Trustee and the Noteholders) to serve as its agent for the foregoing
purposes.

            (j) FURTHER INSTRUMENTS AND ACTS. Upon request of the Indenture
Trustee, the Issuer shall execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

            Section 3.03. NEGATIVE COVENANTS OF THE ISSUER. From the Effective
Date until the termination of this Indenture, the Issuer hereby agrees that it
shall not:

            (a) AMENDMENT OF LIMITED LIABILITY COMPANY AGREEMENT. Amend its
limited liability company agreement unless, prior to such amendment, each Rating
Agency confirms that after such amendment the Rating Agency Condition will be
met and each Applicable Series Enhancer consents thereto;

            (b) CHANGE IN LOCATION OF CHIEF EXECUTIVE OFFICE. (a) Change the
location of its chief executive office or principal place of business (within
the meaning of the applicable Uniform Commercial Code) without sixty (60) days'
prior written notice to the Indenture Trustee or (b) change its name or the
jurisdiction of its formation without prior written notice to the Indenture
Trustee sufficient to allow the Indenture Trustee to execute all filings
prepared by the Issuer (including filings of financing statements on form UCC-
1) and recordings necessary to maintain the perfection of the interest of the
Indenture Trustee on behalf of the Noteholders in the Pledged Assets pursuant to
this Indenture. If the Issuer desires to so change its office or change its name
or the jurisdiction of its formation, the Issuer will make any required filings
and prior to actually changing its office or its name or the jurisdiction of its
formation the Issuer shall deliver to the Indenture Trustee (i) an Officer's
Certificate and (ii) copies of all such required filings with the filing
information duly noted thereon by the office in which such filings were made;

            (c) CAPITAL EXPENDITURES. Make any expenditure (by long-term or
operating lease or otherwise) for capital assets (either realty or personalty);

            (d) NO OTHER BUSINESS OR AGREEMENTS. Engage in any business other
than financing, purchasing, owning and selling and managing the Pledged Assets
in the manner contemplated by this Indenture and the other Transaction Documents
and all activities incidental thereto, or enter into or be a party to any
agreement or instrument other than any Transaction Document or documents and
agreements incidental thereto;

            (e) CONSOLIDATION, MERGER OR OTHER FORM OF COMBINATION AND SALE OF
ASSETS. Enter into any consolidation, merger, joint venture, syndicate or other
form of combination with any Person or sell, lease or transfer of otherwise
dispose of any assets, including without limitation the Pledged Assets, other
than as expressly provided for in the Transaction

                                       30
<Page>

Documents, or engage in any other transaction, that would result in a change of
control of the Issuer;

            (f) GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES. Except as
contemplated by this Indenture or the other Transaction Documents, make any loan
or advance or credit to, or guarantee (directly or indirectly or by an
instrument having the effect of assuring another's payment or performance on any
obligation or capability of so doing or otherwise), endorse or otherwise become
contingently liable, directly or indirectly, in connection with the obligations,
stocks or dividends of, or own, purchase, repurchase or acquire (or agree
contingently to do so) any stock, obligations, assets or securities of, or any
other interest in, or make any capital contribution to, any other Person;

            (g) INDEBTEDNESS. Issue, incur, assume, guarantee or otherwise
become liable, directly or indirectly, for any indebtedness except as expressly
provided for pursuant to the terms of the Transaction Documents and the Notes;

            (h) DEDUCTION FROM PRINCIPAL AND INTEREST. Claim any credit on, or
make any deduction from, the principal and interest payable in respect of the
Notes (other than amounts properly withheld from such payments under the Code or
applicable state law) or assert any claim against any present or former
Noteholder by reason of the payment of any taxes levied or assessed upon any
part of the Pledged Assets;

            (i) EFFECTIVENESS OF INDENTURE, LIENS. (i) Permit the validity or
effectiveness of this Indenture to be impaired, or permit the lien of this
Indenture to be amended, hypothecated, subordinated, terminated or discharged,
or permit any Person to be released from any covenants or obligations with
respect to the Notes under this Indenture except as may be expressly permitted
hereby, (ii) permit any Lien, charge, excise, claim, security interest, mortgage
or other encumbrance (other than the lien of this Indenture) to be created on or
extend to or otherwise arise upon or burden the Pledged Assets or any part
thereof or any interest therein or the proceeds thereof or (iii) permit the lien
of this Indenture not to constitute a valid first priority perfected security
interest in the Pledged Assets; or

            (j) DISSOLVE OR LIQUIDATE. Dissolve or liquidate in whole or in
part.

            Section 3.04. PROTECTION OF PLEDGED ASSETS.

            The Issuer shall from time to time prepare (or cause to be
prepared), execute and deliver all such supplements and amendments hereto and
all such financing statements, continuation statements, instruments of further
assurance and other instruments, and shall take such other action necessary or
advisable to:

            (a) Grant more effectively all or any portion of the Pledged Assets
for the Notes;

            (b) maintain or preserve the lien (and the priority thereof) of this
Indenture or to carry out more effectively the purposes hereof;

                                       31
<Page>

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

            (d) enforce any of the Pledged Assets; or

            (e) preserve and defend title to the Pledged Assets securing the
Notes and the rights therein of the Indenture Trustee and the Noteholders
secured thereby against the claims of all persons and parties.

            The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required pursuant to this Section 3.04.

            Section 3.05. OPINIONS AS TO PLEDGED ASSETS.

            (a) On the Series Issuance Date relating to any new Series of Notes,
the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either
stating that, in the opinion of such counsel, such action has been taken as is
necessary to perfect the lien and security interest of this Indenture, including
without limitation with respect to the recording and filing of this Indenture,
any indentures supplemental hereto and any other requisite documents, and with
respect to the execution and filing of any financing statements and continuation
statements, and reciting the details of such action, or stating that in the
opinion of such counsel no such action is necessary to maintain the perfection
of such lien and security interest.

            (b) On or before April 30 in each calendar year, beginning in the
year 2001, the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken as is necessary to perfect the lien and security interest of this
Indenture, including without limitation with respect to the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents, and with respect to the execution and filing
of any financing statements and continuation statements, and reciting the
details of such action or stating that in the opinion of such counsel no such
action is necessary to maintain the perfection of such lien and security
interest. Such Opinion of Counsel also shall describe the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents and the execution and filing of any financing
statements and continuation statements that, in the opinion of such counsel,
will be required to maintain the perfection of the lien and security interest of
this Indenture until April 30 in the following calendar year.

            Section 3.06. OBLIGATIONS REGARDING SERVICING OF RECEIVABLES.

            (a) The Issuer shall not take any action, and shall use its best
efforts not to permit any action to be taken by others, that would release any
Person from any of such Person's material covenants or obligations under any
instrument or agreement included in the Pledged Assets or that would result in
the amendment, hypothecation, subordination, termination or discharge of, or
impair the validity or effectiveness of, any such instrument or agreement,
except as expressly provided in this Indenture, the Transfer and Servicing
Agreement, the Receivables Purchase Agreement, the Purchase Agreement or such
other instrument or agreement.

                                       32
<Page>

            (b) The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties
by such Person shall be deemed to be action taken by the Issuer. The Issuer
shall cause the Servicer to comply with all the Servicer's obligations under the
Transaction Documents to which the Servicer is a party and shall not agree to
the resignation of the Servicer from its obligations and duties imposed by the
Transfer and Servicing Agreement unless the Majority Investors have consented to
such resignation.

            (c) The Issuer shall punctually perform and observe all of its
obligations and agreements contained in this Indenture, the other Transaction
Documents and in the instruments and agreements relating to the Pledged Assets,
including but not limited to filing or causing to be filed all UCC financing
statements and continuation statements required to be filed by the terms of this
Indenture and the Transfer and Servicing Agreement in accordance with and within
the time periods provided for herein and therein.

            (d) If a Servicer Default shall arise from the failure of the
Servicer to perform any of its duties or obligations under the Transfer and
Servicing Agreement with respect to the Receivables, the Issuer shall take all
reasonable steps available to it to remedy such failure.

            (e) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee or the rights of the Indenture Trustee under
this Indenture, the Issuer agrees (i) that it will not, without the prior
written consent of the Indenture Trustee and the Majority Investors, amend,
modify, waive, supplement, terminate or surrender, or agree to any amendment,
modification, supplement, termination, waiver or surrender of, the terms of any
Pledged Assets (except to the extent otherwise provided in the Transfer and
Servicing Agreement) or the Transaction Documents (except to the extent
otherwise provided in the Transaction Documents), or waive timely performance or
observance by the Servicer or the Transferor of its obligations under the
Transfer and Servicing Agreement, or CMSC of its obligations under the Purchase
Agreement or CMF of its obligations under the Receivables Purchase Agreement or
the Performance Guarantor of its obligations under the PHH Guarantee; and (ii)
that any such amendment shall not (A) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, Pool Collections of payments on
the Pledged Assets or distributions that are required to be made for the benefit
of the Noteholders or (B) change the definition of Majority Investors, without
the consent of the Holders of all the Outstanding Notes. If any such amendment,
modification, supplement or waiver shall be so consented to by the Indenture
Trustee and the Majority Investors or the Holders of all the Outstanding Notes,
as required, the Issuer agrees to execute and deliver, in its own name and at
its own expense, such agreements, instruments, consents and other documents as
the Indenture Trustee may deem necessary or appropriate in the circumstances.

            Section 3.07 SEPARATE CORPORATE EXISTENCE OF THE ISSUER. The Issuer
hereby acknowledges that the parties to the Transaction Documents are entering
into the transactions contemplated by the Transaction Documents in reliance on
the Issuer's identity as a legal entity separate from the Originator, the
Transferor and the other CMS Persons. From and after the date

                                       33
<Page>

hereof until the date of which there are no Notes of any Series Outstanding, the
Issuer shall take such actions as shall be required in order that:

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

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

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

            (d) The Issuer will strictly observe limited liability company
formalities in its dealings with the public and with each CMS Person, and funds
or other assets of the Issuer will not be commingled with those of any CMS
Person, except as may be permitted by the Transaction Documents. The Issuer will
at all times, in its dealings with the public and with each CMS Person, hold
itself out and conduct itself as a legal entity separate and distinct from each
CMS Person. The Issuer will not maintain joint bank accounts or other depository
accounts to which any CMS Person (other than the Servicer) has independent
access;

            (e) The duly admitted members of the Issuer and duly appointed
managers or officers of the Issuer will at all times have sole authority to
control decisions and actions with respect to the daily business affairs of the
Issuer;

            (f) Not less than two members of the Issuer's board of directors
will be an Independent Director. The Issuer will observe those provisions in its
limited liability company agreement that provide that the Issuer's board of
directors will not approve, or take any other action to cause the filing of, a
voluntary bankruptcy petition with respect to the Issuer unless each Independent
Director and all other members of the Issuer's board of directors unanimously
approve the taking of such action in writing prior to the taking of such action;

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

            (h) The Issuer will not hold itself out to be responsible for the
debts of any CMS Person.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

            Section 4.01. SATISFACTION AND DISCHARGE OF THIS INDENTURE.

            This Indenture shall cease to be of further effect with respect to
the Notes (except as to (a) rights of registration of transfer and exchange, (b)
substitution of mutilated, destroyed, lost or stolen Notes, (c) the rights of
Noteholders to receive payments of principal thereof and

                                       34
<Page>

interest thereon, (d) Sections 3.02(j), 3.03, 3.05, 3.06 and 12.14, (e) the
rights and immunities of the Indenture Trustee hereunder, including the rights
of the Indenture Trustee under Section 6.07 and the obligations of the Indenture
Trustee under Section 4.02, the rights and immunities of BNY hereunder,
including the rights of BNY under Section 2.04(b) and the obligations of BNY
under Section 2.05, 2.06, 2.08 and 2.09 and (g) the rights of Noteholders as
beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee and payable to all or any of them) and the Indenture Trustee,
on demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the
Notes when:

            (i) either

                  (A) all Notes theretofore authenticated and delivered (other
      than (1) Notes that have been destroyed, lost or stolen and that have been
      replaced, or paid as provided in Section 2.06 and (2) Notes for whose full
      payment money has theretofore been deposited in trust or segregated and
      held in trust by the Issuer and thereafter repaid to the Issuer or
      discharged from such trust, as provided in Section 8.07) have been
      delivered to the Indenture Trustee for cancellation; or

                  (B) all Notes not theretofore delivered to the Indenture
      Trustee for cancellation:

                        (1) have become due and payable; or

                        (2) will become due and payable at the maturity date for
                  such Series of Notes;

            (ii) the Issuer has paid or caused to be paid all other sums payable
      hereunder by the Issuer;

            (iii) the Issuer has delivered to the Indenture Trustee an Officer's
      Certificate, an Opinion of Counsel and (if required by the Indenture
      Trustee) an Independent Certificate from a firm of certified public
      accountants, each meeting the applicable requirements of Section 12.01(a)
      and each stating that all conditions precedent herein provided for
      relating to the satisfaction and discharge of this Indenture have been
      complied with; and

            (iv) the Rating Agency Condition is satisfied with respect to each
      Series of Outstanding Notes.

            Section 4.02. APPLICATION OF TRUST MONEY.

            All monies deposited with the Indenture Trustee pursuant to Section
4.01 shall be held in trust and applied by it in accordance with the provisions
of the Notes, this Indenture and the applicable Indenture Supplement, to make
payments, through the Paying Agent, to the Noteholders and for the payment in
respect of which such monies have been deposited with the Indenture Trustee, of
all sums due and to become due thereon for principal and interest; but such

                                       35
<Page>

monies need not be segregated from other funds except to the extent required
herein or required by law.

                                    ARTICLE V

                         EVENTS OF DEFAULT AND REMEDIES

            Section 5.01. EVENTS OF DEFAULT.

            Each of the following events shall be an "EVENT OF DEFAULT" with
respect to any Series of Notes hereunder:

            (a) The Issuer shall fail to make any payment of interest on any
Note of such Series when due (without giving effect to payments under any Series
Enhancement that is a letter of credit, surety bond or financial guaranty
insurance policy) and such failure shall remain unremedied for five Business
Days; or

            (b) The Issuer shall fail to make any payment of the principal of
any Note of such Series when due (without giving effect to any payments under
any Series Enhancement that is a letter of credit, surety bond or financial
guaranty insurance policy); or

            (c) (i) The Issuer shall fail to perform or observe, as and when
required, any term, covenant or agreement contained in this Indenture or any of
the other Transaction Documents on its part to be performed or observed (other
than as referred to in Section 5.01(a) or (b) above), (ii) such failure
materially and adversely affects the rights of the Noteholders of such Series
(determined without giving effect to any Series Enhancement) and (iii) such
failure shall remain unremedied for 30 days after written notice thereof
(specifying such failure and requiring it to be remedied and stating that such
notice is a "Notice of Default" hereunder) shall have been given (A) to the
Issuer by the Indenture Trustee or (B) to the Issuer and the Indenture Trustee
by Noteholders of such Series holding Notes evidencing at least 25% of the
Series Outstanding Amount of such Series; or

            (d) (i) any representation or warranty made by the Issuer in this
Indenture or any of the other Transaction Documents shall prove to have been
untrue and incorrect in any material respect when made or deemed to have been
made, (ii) such occurrence materially and adversely affects the rights of the
Noteholders of such Series (determined without giving effect to any Series
Enhancement) and (iii) such occurrence remains unremedied for 30 days after
written notice thereof (specifying such failure and requiring it to be remedied
and stating that such notice is a "Notice of Default" hereunder) shall have been
(A) given to the Issuer by the Indenture Trustee or (B) to the Issuer and the
Indenture Trustee by Noteholders of such Series holding Notes evidencing at
least 25% of the Series Outstanding Amount of such Series; or

            (e) An Insolvency Event shall have occurred with respect to the
Issuer; or

            (f) The Commission or other regulatory body having jurisdiction
reaches a final determination that the Issuer is required to be registered under
the Investment Company Act.

                                       36
<Page>

            The Issuer shall deliver to the Indenture Trustee, within five days
after the occurrence thereof, written notice in the form of an Officer's
Certificate of any event that with the giving of notice and the lapse of time
would become an Event of Default, its status and what action the Issuer is
taking or proposes to take with respect thereto.

            Section 5.02. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

            If an Event of Default referred to in clause (e) or (f) of Section
5.01 has occurred, the unpaid principal amount of all Series of Notes, together
with interest accrued but unpaid thereon, and all other amounts due to the
Noteholders under this Agreement shall immediately and without further act
become due and payable. If an Event of Default referred to in clause (a), (b),
(c) or (d) of Section 5.01 shall occur and be continuing with respect to any
Series of Notes, then and in every such case the Indenture Trustee or
Noteholders holding Notes evidencing a majority of the Series Outstanding Amount
of such Series of Notes may declare all the Notes of such Series to be
immediately due and payable, by a notice in writing to the Issuer (and to the
Indenture Trustee if given by the Noteholders), and upon any such declaration
the unpaid principal amount of such Notes, together with accrued and unpaid
interest thereon through the date of acceleration, shall become immediately due
and payable.

            Section 5.03. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT
BY THE INDENTURE TRUSTEE.

            The Issuer covenants that if (i) a default occurs in the payment of
any interest on any Note when the same becomes due and payable, and such default
continues for a period of five Business Days or (ii) a default is made in the
payment of the principal of any Note when the same becomes due and payable, by
acceleration or at stated maturity, the Issuer will, upon demand of the
Indenture Trustee, pay to the Indenture Trustee, for the benefit of the Holders
of such Notes, the entire amount then due and payable on such Notes for
principal and interest, with interest on the overdue principal, and to the
extent payment at such rate of interest shall be legally enforceable, on overdue
installments of interest, at the Note Interest Rate borne by the Notes and, in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel.

            If the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and on behalf of the Noteholders
of such Series, may institute a proceeding for the collection of the sums so due
and unpaid, and may prosecute such proceeding to judgment or final decree, and
may enforce the same against the Issuer or other obligor upon such Notes and
collect in the manner provided by law out of the property of the Issuer the
moneys adjudged or decreed to be payable.

            If an Event of Default occurs and is continuing, the Indenture
Trustee may in its discretion, as more particularly provided in Section 5.04,
proceed to protect and enforce its rights and the rights of the Noteholders by
such appropriate proceedings as the Indenture Trustee deems most effective to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or any Indenture Supplement or in aid of
the exercise of any power granted herein or therein, or to enforce any other
proper remedy

                                       37
<Page>

or legal or equitable right vested in the Indenture Trustee by this Indenture,
any Indenture Supplement or by law.

            If there shall be pending, relative to the Issuer or any Person
having or claiming an ownership interest in the Pledged Assets, proceedings
under the Bankruptcy Code or any other applicable Federal or State bankruptcy,
insolvency or other similar law, or in case a receiver, assignee or trustee in
bankruptcy or reorganization, liquidator, sequestrator or similar official shall
have been appointed for or taken possession of the Issuer or its property or
such other obligor or Person, or in the event of any other comparable judicial
proceedings relative to the Issuer or to the creditors or property of the
Issuer, then the Indenture Trustee shall be entitled and empowered, by
intervention in such proceedings or otherwise and whether or not the principal
of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and whether or not the Indenture Trustee shall have
made any demand pursuant to the provisions of this Section 5.03:

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

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

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

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

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

                                       38
<Page>

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

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

            In any proceedings brought by the Indenture Trustee (and also any
proceedings involving the interpretation of any provision of this Indenture or
any Indenture Supplement to which the Indenture Trustee shall be a party), the
Indenture Trustee shall be held to represent all the Holders of the Notes, and
it shall not be necessary to make any Noteholder a party to any such
proceedings.

            Section 5.04. REMEDIES; PRIORITIES.

            (a) If an Event of Default shall have occurred and be continuing
with respect to any Series of Outstanding Notes and such Series of Notes has
been accelerated under Section 5.02, the Indenture Trustee may institute
proceedings to enforce the obligations of the Issuer hereunder and under the
Indenture Supplement with respect to such Series of Notes in its own name and on
behalf of the Noteholders of such Series for the collection of all amounts then
payable on the Notes of such Series or under this Indenture or such Indenture
Supplement with respect thereto, whether by declaration or otherwise, enforce
any judgment obtained, and collect from the Issuer moneys adjudged due.

            (b) If an Event of Default shall have occurred and be continuing
with respect to all Series of Outstanding Notes and all Series of Outstanding
Notes have been accelerated under Section 5.02, the Indenture Trustee may or, if
so directed by the Majority Investors, the Indenture Trustee shall, do one or
more of the following:

                  (i) institute proceedings from time to time for the complete
      or partial foreclosure of this Indenture with respect to the Pledged
      Assets;

                  (ii) exercise any remedies of a secured party under the NYUCC
      and take any other appropriate action to protect and enforce the rights
      and remedies of the Indenture Trustee and the Holders of the Notes; and

                                       39
<Page>

                  (iii) in the case of an Event of Default referred to in clause
      (a) or (b) of Section 5.01, sell the Pledged Assets or rights or interest
      therein, at one or more public or private sales called and conducted in
      accordance with Section 5.05;

PROVIDED that the Indenture Trustee may not sell or otherwise liquidate the
Pledged Assets following an Event of Default referred to in clause (a) or (b) of
Section 5.01 unless (A) the proceeds of the sale or liquidation of the Pledged
Assets are sufficient to discharge in full all amounts due and unpaid with
respect to the Notes, (B) if the Indenture Trustee has determined that the
Pledged Assets will not continue to provide sufficient funds for the payment of
principal of and interest on the Notes, Holders of Notes evidencing 66 2/3% of
the Outstanding Amount, voting as a single class, consent to such sale or
liquidation or (C) Holders of Notes evidencing 100% of the Outstanding Amount
consent to such sale or liquidation. In determining such sufficiency or
insufficiency with respect to clause (A) and (B), the Indenture Trustee may, but
is not required to, obtain and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Pledged Assets for such
purpose.

            (c) If the Indenture Trustee collects any money or property pursuant
to this Article V, such money or property shall be held by the Indenture Trustee
as additional collateral hereunder and the Indenture Trustee shall pay out such
money or property to the Collection Account for distribution in accordance with
the provisions of Article VIII.

            Section 5.05. SALE OF ASSETS.

            (a) The method, manner and time, place and terms of any sale of all
of the Pledged Assets pursuant to Section 5.04(b) shall be commercially
reasonable. The Indenture Trustee may from time to time postpone any sale by
public announcement made at the time and place of such sale. The Indenture
Trustee hereby expressly waives its right to any amount fixed by law as
compensation for such sale.

            (b) In connection with a sale of all of the Pledged Assets pursuant
to Section 5.04(b), any Noteholder may bid for and purchase the property offered
for sale, and upon compliance with the terms of such sale may hold, retain and
possess and dispose of such property, without further accountability, and may,
in paying the purchase money therefor, deliver any Outstanding Notes or claims
for interest thereon in lieu of cash up to the amount that shall, upon
distribution of the net proceeds of such sale, be payable thereon.

            (c) The Indenture Trustee may bid for and acquire any portion of the
Pledged Assets securing the Notes in connection with a public sale thereof, and
may pay all or part of the purchase price by crediting against amounts owing to
the Indenture Trustee under this Indenture, including without limitation the
costs, charges and expenses incurred by the Indenture Trustee in connection with
such sale.

            (d) The Indenture Trustee shall execute and deliver an appropriate
instrument of conveyance transferring its interest in any portion of the Pledged
Assets in connection with a sale thereof. In addition, the Indenture Trustee is
hereby irrevocably appointed the agent and attorney-in-fact of the Issuer to
transfer and convey its interest in any portion of the Pledged

                                       40
<Page>

Assets in connection with a sale thereof, and to take all action necessary to
effect such sale. No purchaser or transferee at such a sale shall be bound to
ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent or see to the application of any monies.

            Section 5.06. LIMITATIONS ON SUITS.

            No Noteholder shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture or any Indenture
Supplement, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

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

            (b) Noteholders holding Notes evidencing at least 25% of the Series
Outstanding Amount of each Series of Outstanding Notes have made written request
to the Indenture Trustee to institute such proceeding in respect of such Event
of Default in its own name as the Indenture Trustee hereunder;

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

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

            (e) no direction inconsistent with such written request has been
given to the Indenture Trustee during such 60-day period by the Majority
Investors;

it being understood and intended that no one or more Noteholders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other
Noteholders or to obtain or to seek to obtain priority or preference over any
other Noteholders or to enforce any right under this Indenture, except in the
manner herein provided.

            If the Indenture Trustee receives conflicting or inconsistent
requests and indemnity from two or more groups of Noteholders holding Notes,
each evidencing less than a majority of the Series Outstanding Amount of each
Series of Outstanding Notes, the Indenture Trustee shall act at the direction of
the group of Noteholders holding Notes evidencing the greater amount of Notes;
PROVIDED, HOWEVER, that, notwithstanding any other provisions of this Indenture,
if the Indenture Trustee receives conflicting or inconsistent requests and
indemnity

                                       41
<Page>

from two or more groups of Noteholders holding an equal amount of Notes, the
Indenture Trustee in its sole discretion may determine what, if any, action
shall be taken.

            Section 5.07. UNCONDITIONAL RIGHT OF NOTEHOLDERS TO RECEIVE
                          PRINCIPAL AND INTEREST.

            Notwithstanding any other provision of this Indenture, other than
provisions hereof limiting the right to recover amounts due on the Notes to
recoveries from the Pledged Assets, the holder of any Note shall have the
absolute and unconditional right to receive payment of the principal of and
interest on such Note as such principal and interest becomes due and payable and
to institute suit for the enforcement of any such payment, and such right shall
not be impaired without the consent of such Noteholder.

            Section 5.08. RESTORATION OF RIGHTS AND REMEDIES.

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

            Section 5.09. RIGHTS AND REMEDIES CUMULATIVE.

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

            Section 5.10. DELAY OR OMISSION NOT A WAIVER.

            No delay or omission of the Indenture Trustee or any Noteholder to
exercise any right or remedy accruing upon any Default or Event of Default shall
impair any such right or remedy or constitute a waiver of any such Default or
Event of Default or an acquiescence therein. Every right and remedy given by
this Article V or by law to the Indenture Trustee or to the Noteholders may be
exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee or by the Noteholders, as the case may be.

            Section 5.11. CONTROL BY NOTEHOLDERS.

            Except as specifically set forth herein, the Majority Investors
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to

                                       42
<Page>

the Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee, PROVIDED that

            (a) such direction shall not be in conflict with any rule of law or
with this Indenture;

            (b) if an Event of Default occurs with respect to less than all
Series of Outstanding Notes, then the Indenture Trustee's rights and remedies
shall be limited to the rights and remedies pertaining only to those Series of
Notes with respect to which such Event of Default has occurred, and the
Indenture Trustee shall exercise such rights and remedies at the direction of
the Noteholders holding Notes evidencing a majority of the Series Outstanding
Amount of all such Series of Notes;

            (c) the Indenture Trustee may take any other action deemed proper by
the Indenture Trustee that is not inconsistent with such direction; and

            (d) such direction shall be in writing;

and PROVIDED, FURTHER, that subject to Section 6.01, the Indenture Trustee need
not take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders not consenting to such
action.

            Section 5.12. WAIVER OF PAST DEFAULTS.

            Prior to the declaration of the acceleration of the maturity of the
Notes of any Series as provided in Section 5.02, Noteholders holding Notes
evidencing a majority of the Series Outstanding Amount of such Series of Notes
may, on behalf of all such Noteholders, waive any past Default or Event of
Default with respect to such Series of Notes and its consequences except a
Default (a) in payment of principal of or interest on any of the Notes of such
Series or (b) in respect of a covenant or provision hereof that cannot be
modified or amended without the consent of the Holder of each Note of such
Series. In the event of any such waiver, the Issuer, the Indenture Trustee and
the Noteholders of such outstanding Series shall be restored to their former
positions and rights hereunder, respectively, but no such waiver shall extend to
any subsequent or other Default or impair any right consequent thereto.

            Upon any such waiver, such Default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured and not to have occurred,
for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto. The Issuer shall give prompt written notice of any waiver to the Rating
Agencies.

            Section 5.13. UNDERTAKING FOR COSTS.

            All parties to this Indenture agree, and each Noteholder by such
Noteholder's acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against

                                       43
<Page>

the Indenture Trustee for any action taken, suffered or omitted by it as the
Indenture Trustee, the filing by any party litigant in such Proceeding of an
undertaking to pay the costs of such Proceeding, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such Proceeding, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; PROVIDED,
HOWEVER, the provisions of this Section 5.13 shall not apply to (a) any suit
instituted by the Indenture Trustee, (b) any suit instituted by any Noteholder
or group of Noteholders, in each case holding Notes evidencing in the aggregate
more than 10% of the Series Outstanding Amount of any Series of Notes, or (c)
any suit instituted by any Noteholder for the enforcement of the payment of
principal of or interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture.

            Section 5.14. WAIVER OF STAY OR EXTENSION LAWS.

            The Issuer covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead or in any manner whatsoever, claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the
performance of this Indenture, and the Issuer (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

            Section 5.15. ACTION ON NOTES.

            The Indenture Trustee's right to seek and recover judgment on the
Notes or under this Indenture shall not be affected by the seeking, obtaining or
application of any other relief under or with respect to this Indenture. Neither
the Lien of this Indenture nor any rights or remedies of the Indenture Trustee
or the Noteholders shall be impaired by the recovery of any judgment by the
Indenture Trustee against the Issuer or by the levy of any execution under such
judgment upon any portion of the Pledged Assets or upon any of the assets of the
Issuer.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

            Section 6.01. DUTIES OF THE INDENTURE TRUSTEE.

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

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

                                       44
<Page>

                  (i) the Indenture Trustee undertakes to perform such duties
      and only such duties as are specifically set forth in this Indenture, and
      no implied covenants or obligations shall be read into this Indenture
      against the Indenture Trustee; and

                  (ii) in the absence of bad faith or negligence on its part,
      the Indenture Trustee may conclusively rely, as to the truth of the
      statements and the correctness of the opinions and calculations expressed
      therein, upon certificates or opinions furnished to the Indenture Trustee
      and conforming to the requirements of this Indenture; provided, HOWEVER,
      that the Indenture Trustee, upon receipt of any resolutions, certificates,
      statements, opinions, reports, documents, orders or other instruments
      furnished to the Indenture Trustee that are specifically required to be
      furnished pursuant to any provision of this Indenture or any Indenture
      Supplement, shall examine them to determine whether they substantially
      conform, without verification of the accuracy of any computations therein,
      to the requirements of this Indenture or any Indenture Supplement. The
      Indenture Trustee shall give prompt written notice to the Noteholders and
      each Rating Agency of any material lack of conformity of any such
      instrument to the applicable requirements of this Indenture or any
      Indenture Supplement discovered by the Indenture Trustee that would
      entitle the Majority Investors to take any action pursuant to this
      Indenture or any Indenture Supplement if such lack of conformity cannot be
      cured.

            (c) No provision of this Indenture shall be construed to relieve the
Indenture Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

                  (i) this Section 6.01(c) shall not be construed to limit the
      effect of Section 6.01(a);

                  (ii) permissive rights of the Indenture Trustee shall not be
      construed as duties;

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

                  (iv) the Indenture Trustee shall not be liable with respect to
      any action taken, suffered or omitted to be taken by it in good faith in
      accordance with the Indenture and at the direction of the Majority
      Investors relating to the time, method and place of conducting any
      proceeding for any remedy available to the Indenture Trustee, or for
      exercising any trust or power conferred upon the Indenture Trustee under
      this Indenture; and

                  (v) no provision of this Indenture or of any Transaction
      Document shall require the Indenture Trustee to be responsible for the
      acts or omissions of the Servicer or to act as Successor Servicer until
      such time as it is required to act as Successor Servicer under this
      Indenture.

                                       45
<Page>

            (d) No provision of this Indenture shall require the Indenture
Trustee 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 or powers if it shall have reasonable grounds for believing
that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

            (e) Each provision of this Indenture that in any way relates to the
Indenture Trustee is subject to Sections 6.01(a) and (b).

            (f) The Indenture Trustee shall have no responsibility or liability
for investment losses on Eligible Investments, except to the extent that the
institution acting as Indenture Trustee is an obligor on such Eligible
Investment.

            (g) The Indenture Trustee shall notify each Rating Agency of any
change in any rating of the Notes of any other Rating Agency of which the
Indenture Trustee has received written notice pursuant to any of the Transaction
Documents.

            (h) For all purposes under this Indenture, the Indenture Trustee
shall not be deemed to have notice or knowledge of any Event of Default,
Servicer Default or Amortization Event unless a Trustee Officer assigned to and
working in the Corporate Trust Office of the Indenture Trustee has actual
knowledge thereof or has received written notice thereof. For purposes of
determining the Indenture Trustee's responsibility and liability hereunder, any
reference to an Event of Default, Servicer Default or Amortization Event shall
be construed to refer only to such event of which the Indenture Trustee is
deemed to have notice as described in this Section 6.01(h).

            Section 6.02. NOTICE OF EVENT OF DEFAULT.

            Upon the occurrence of any Event of Default of which a Trustee
Officer has actual knowledge or has received notice, the Indenture Trustee shall
transmit by mail to all Noteholders as their names and addresses appear on the
Note Register and to the Rating Agencies, notice of such Event of Default known
to the Indenture Trustee within the later of (i) 30 days after such Event of
Default occurs or (ii) ten Business Days after the Indenture Trustee receives
such notice or obtains actual notice, if later.

            Section 6.03. RIGHTS OF INDENTURE TRUSTEE.

            Except as otherwise provided in Section 6.01:

            (a) The Indenture Trustee may conclusively rely and shall fully be
protected in acting or refraining from acting on any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, note or other paper or document reasonably believed by it to be
genuine and to have been signed or presented by the proper party or parties.

            (b) Whenever in the administration of this Indenture the Indenture
Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or

                                       46
<Page>

omitting any action hereunder, the Indenture Trustee may (unless other evidence
be herein specifically prescribed), in the absence of bad faith on its part,
rely on an Officer's Certificate of the Issuer.

            (c) The Indenture Trustee may consult with counsel with respect to
any action to be taken, suffered or omitted by it hereunder and the written
advice of such counsel, obtained in good faith, or any Opinion of Counsel or any
Tax Opinion shall be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder in good faith reliance
thereon.

            (d) The Indenture Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture or to honor the
request or direction of any of the Noteholders pursuant to this Indenture, or a
Series Enhancer if so authorized by an Indenture Supplement unless such
Noteholders or Series Enhancer shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that might be incurred by it in compliance with such request or direction.

            (e) The Indenture Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, note or other paper or document, but the Indenture Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit and, if the Indenture Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Issuer, personally or by agent or attorney.

            (f) Subject to Section 6.13 hereof, the Indenture Trustee may
execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents, Affiliates, attorneys, custodians or
nominees; PROVIDED, HOWEVER, that the Indenture Trustee shall continue to be
responsible for any (i) misconduct or negligence on the part of any agent,
Affiliates, attorney, custodians or nominees appointed by it hereunder and (ii)
the supervision of such agents, Affiliates, attorneys, custodians or nominees
after such appointment.

            (g) The Indenture Trustee shall not be liable for any actions taken,
suffered or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights conferred upon the Indenture Trustee by this
Indenture.

            (h) If the Indenture Trustee is also acting as Paying Agent,
Authentication Agent and Transfer Agent and Registrar, the rights and
protections afforded to the Indenture Trustee pursuant to this Article VI shall
also be afforded to such Paying Agent, Authentication Agent and Transfer Agent
and Registrar.

            Section 6.04. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF NOTES.

            The recitals contained herein and in the Notes shall be taken as the
statements of the Issuer, and the Indenture Trustee assumes no responsibility
for their correctness. The Indenture Trustee makes no representation as to the
validity or sufficiency of this Indenture, the other Transaction Documents, the
Pledged Assets, the Notes or any related document. The

                                       47
<Page>

Indenture Trustee shall not be accountable for the use or application by the
Issuer of the proceeds from the Notes.

            Section 6.05. MAY HOLD NOTES.

            The Indenture Trustee and any Affiliates, in its individual or any
other capacity, may become the owner or pledgee of Notes and may otherwise deal
with the Issuer, any CMS Person and their Affiliates, any Series Enhancer, any
underwriter or any of the other parties to the Transaction Documents with the
same rights it would have if it were not the Indenture Trustee or an Affiliate
of the Indenture Trustee.

            Section 6.06. MONEY HELD IN TRUST.

            Money held by the Indenture Trustee in trust hereunder need not be
segregated from other funds held by the Indenture Trustee in trust hereunder
except to the extent required herein or required by law. The Indenture Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed upon in writing by the Indenture Trustee and the
Issuer.

            Section 6.07. COMPENSATION, REIMBURSEMENT AND INDEMNIFICATION.

            Pursuant to the Transfer and Servicing Agreement, the Issuer shall
direct the Servicer to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Issuer shall
cause the Servicer to indemnify the Indenture Trustee against any and all loss,
liability or expense (including the fees of either in-house counsel or outside
counsel, but not both) incurred by it in connection with the administration of
this trust and the performance of its duties hereunder and under any other
Transaction Document. The Indenture Trustee shall notify the Issuer and the
Servicer promptly of any claim for which it may seek indemnity. Failure by the
Indenture Trustee to so notify the Issuer and the Servicer shall not relieve the
Issuer of its obligations hereunder unless such loss, liability or expense could
have been avoided with such prompt notification and then only to the extent of
such loss, expense or liability which could have been so avoided. Neither the
Issuer nor the Servicer need reimburse any expense or indemnify against any
loss, liability or expense incurred by the Indenture Trustee through the
Indenture Trustee's own willful misconduct, negligence or bad faith.

            When the Indenture Trustee incurs expenses after the occurrence of a
Default specified in subsection 5.02(d) with respect to the Issuer, the expenses
are intended to constitute expenses of administration under Title 11 of the
United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law.

                                       48
<Page>

            Section 6.08. REPLACEMENT OF INDENTURE TRUSTEE.

            No resignation or removal of the Indenture Trustee and no
appointment of a successor Indenture Trustee shall become effective until the
acceptance of appointment by the successor Indenture Trustee pursuant to this
Section 6.08. The Indenture Trustee may resign at any time by giving 30 days'
written notice to the Issuer. The Majority Investors may remove the Indenture
Trustee by so notifying the Indenture Trustee. The Issuer shall remove the
Indenture Trustee if:

            (a) the Indenture Trustee fails to comply with Section 6.11;

            (b) the Indenture Trustee is adjudged a bankrupt or insolvent; or

            (c) the Indenture Trustee otherwise becomes legally unable to act.

If the Indenture Trustee resigns or is removed or if a vacancy exists in the
office of Indenture Trustee for any reason (the Indenture Trustee in such event
being referred to herein as the retiring Indenture Trustee), the Issuer shall
promptly appoint a successor Indenture Trustee (who satisfies the requirements
of Section 6.11) subject to the consent of the Majority Investors.

            A successor Indenture Trustee shall deliver a written acceptance of
its appointment to the retiring Indenture Trustee, the Issuer and the Servicer.
Thereupon the resignation or removal of the retiring Indenture Trustee shall
become effective, and the successor Indenture Trustee shall have all the rights,
powers and duties of the Indenture Trustee under this Indenture. The successor
Indenture Trustee shall mail a notice of its succession to each Series Enhancer
and all Noteholders. The retiring Indenture Trustee shall promptly transfer all
property held by it as Indenture Trustee to the successor Indenture Trustee.

            If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Majority Investors may petition any court
of competent jurisdiction for the appointment of a successor Indenture Trustee.

            If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

            Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section 6.08, the Issuer's obligations under Section 6.07 shall continue
for the benefit of the retiring Indenture Trustee.

            Section 6.09. SUCCESSOR INDENTURE TRUSTEE BY MERGER.

            If the Indenture Trustee consolidates with, merges or converts into,
or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or
transferee corporation without any further act shall be the successor Indenture
Trustee, PROVIDED that such corporation or banking association is otherwise

                                       49
<Page>

qualified and eligible under Section 6.11. The Indenture Trustee shall provide
the Rating Agencies and each Series Enhancer with prior written notice of any
such transaction.

            Section 6.10. APPOINTMENT OF CO-INDENTURE TRUSTEE OR SEPARATE
INDENTURE TRUSTEE.

            (a) Notwithstanding any other provisions of this Indenture, for the
purpose of meeting any legal requirement of any jurisdiction in which any part
of the Pledged Assets may at the time be located, the Indenture Trustee shall
have the power and may execute and deliver at any time all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Pledged Assets, and to
vest in such Person or Persons, in such capacity and for the benefit of the
Noteholders, such title to the Pledged Assets or any part thereof and, subject
to the other provisions of this Section 6.10, such powers, duties, obligations,
rights and trusts as the Indenture Trustee may consider necessary or desirable.
No co-trustee or separate trustee hereunder shall be required to meet the terms
of eligibility as a successor trustee under Section 6.11, and no notice to
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.08 but notice shall be given to each Applicable Series
Enhancer.

            (b) Each separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                  (i) all rights, powers, duties and obligations conferred or
      imposed on the Indenture Trustee shall be conferred or imposed on, and
      exercised or performed by, the Indenture Trustee and such separate trustee
      or co-trustee jointly (it being understood that such separate trustee or
      co-trustee is not authorized to act separately without the Indenture
      Trustee joining in such act), except to the extent that under any law of
      any jurisdiction in which any particular act or acts are to be performed
      the Indenture Trustee shall be incompetent or unqualified to perform such
      act or acts, in which event such rights, powers, duties and obligations
      (including the holding of title to the Pledged Assets or any portion
      thereof in any such jurisdiction) shall be exercised and performed singly
      by such separate trustee or co-trustee, but solely at the direction of the
      Indenture Trustee;

                  (ii) no trustee hereunder shall be personally liable by reason
      of any act or omission of any other trustee hereunder; and

                  (iii) the Indenture Trustee may at any time accept the
      resignation of or remove any separate trustee or co-trustee.

            (c) Any notice, request or other writing given to the Indenture
Trustee shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every

                                       50
<Page>

provision of this Indenture relating to the conduct of, affecting the liability
of, or affording protection to, the Indenture Trustee. Every such instrument
shall be filed with the Indenture Trustee.

            (d) Any separate trustee or co-trustee may at any time constitute
the Indenture Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Indenture on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

            Section 6.11. ELIGIBILITY; DISQUALIFICATION.

            The Indenture Trustee shall at all times be a corporation organized
and doing business under the laws of the United States or any State thereof
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000 as set forth in its most recent
published annual report of condition and having long-term unsecured debt with a
rating of at least Baa3 by Moody's and BBB- by Standard & Poor's and subject to
supervision or examination by federal or state authority, and shall satisfy the
requirements for a trustee set forth in paragraph (a)(4)(i) of Rule 3a-7 under
the Investment Company Act.

            If at any time the Indenture Trustee ceases to be eligible in
accordance with the provisions of this Section 6.11, the Indenture Trustee shall
resign immediately in the manner and with the effect specified in Section 6.08.

            Section 6.12. REPRESENTATIONS AND COVENANTS OF THE INDENTURE
TRUSTEE.

            The Indenture Trustee represents, warrants and covenants that:

            (a) The Indenture Trustee is duly organized and validly existing
under the laws of the jurisdiction of its organization;

            (b) The Indenture Trustee has full power and authority to deliver
and perform this Indenture and has taken all necessary action to authorize the
execution, delivery and performance by it of this Indenture and other
Transaction Documents to which it is a party; and

            (c) Each of this Indenture and other Transaction Documents to which
it is a party has been duly executed and delivered by the Indenture Trustee and
constitutes its legal, valid and binding obligation in accordance with its
terms.

            Section 6.13. CUSTODY OF PLEDGED ASSETS AND OTHER COLLATERAL.

            The Indenture Trustee shall hold such of the Pledged Assets (and any
other collateral that may be granted to the Indenture Trustee) as consists of
instruments, deposit accounts, negotiable documents, money, goods, letters of
credit, and advices of credit in the State of Illinois. The Indenture Trustee
shall hold such of the Pledged Assets as constitute investment

                                       51
<Page>

property through a securities intermediary, which securities intermediary shall
agree with the Indenture Trustee that (a) such investment property shall at all
times be credited to a securities account of the Indenture Trustee, (b) such
securities intermediary shall treat the Indenture Trustee as entitled to
exercise the rights that comprise each financial asset credited to such
securities account, (c) all property credited to such securities account shall
be treated as a financial asset, (d) such securities intermediary shall comply
with entitlement orders originated by the Indenture Trustee without the further
consent of any other person or entity, (e) such securities intermediary will not
agree with any person other than the Indenture Trustee to comply with
entitlement orders originated by such other person, (f) such securities accounts
and the property credited thereto shall not be subject to any lien, security
interest, right of set-off in favor of such securities intermediary or anyone
claiming through it (other than the Indenture Trustee), and (g) such agreement
shall be governed by the laws of the State of New York. Terms used in the
preceding sentence that are defined in the NYUCC and not otherwise defined
herein shall have the meaning set forth in the NYUCC. Except as permitted by
this Section 6.13, the Indenture Trustee shall not hold Pledged Assets through
an agent or a nominee.

                                   ARTICLE VII

               NOTEHOLDERS' LIST AND REPORTS BY INDENTURE TRUSTEE

            Section 7.01. ISSUER TO FURNISH INDENTURE TRUSTEE NAMES AND
ADDRESSES OF NOTEHOLDERS.

            The Issuer shall furnish or cause the Transfer Agent and Registrar
to furnish to the Indenture Trustee (a) upon each transfer of a Note, a list of
the names, addresses and taxpayer identification numbers of the Noteholders as
they appear on the Note Register as of such Record Date, in such form as the
Indenture Trustee may reasonably require, and (b) at such other times as the
Indenture Trustee may request in writing, within 10 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than 10 days prior to the time such list is furnished; PROVIDED, HOWEVER,
that if the Indenture Trustee is the Transfer Agent and Registrar, the Indenture
Trustee shall furnish to the Issuer such list in the same manner prescribed in
clause (b) above.

            Section 7.02. PRESERVATION OF INFORMATION.

            If the Indenture Trustee is not the Transfer Agent and Registrar,
the Indenture Trustee shall preserve the names, addresses and taxpayer
identification numbers of the Noteholders contained in the most recent list
furnished to the Indenture Trustee as provided in Section 7.01. The Indenture
Trustee may destroy any list furnished to it as provided in Section 7.01 upon
receipt of a new list so furnished.

                                       52
<Page>

                                  ARTICLE VIII

                 ALLOCATION AND APPLICATION OF POOL COLLECTIONS

            Section 8.01. COLLECTION OF MONEY.

            Except as otherwise expressly provided herein and in each related
Indenture Supplement, the Indenture Trustee may demand payment or delivery of,
and shall receive and collect, directly and without intervention or assistance
of any fiscal agent or other intermediary, all money and other property payable
to or receivable by the Indenture Trustee pursuant to this Indenture. The
Indenture Trustee shall hold all such money and property received by it in trust
for the Noteholders and shall apply it as provided in this Indenture. Except as
otherwise expressly provided in this Indenture, if any default occurs in the
making of any payment or performance under the Transfer and Servicing Agreement
or any other Transaction Document, the Indenture Trustee may, and upon the
request of the Majority Investors shall, take such action as may be appropriate
to enforce such payment or performance, including the institution and
prosecution of appropriate proceedings. Any such action shall be without
prejudice to any right to claim an Event of Default under this Indenture and to
proceed thereafter as provided in Article V hereof.

            Section 8.02. RIGHTS OF NOTEHOLDERS.

            The Notes shall represent limited recourse obligations of the Issuer
secured by the Pledged Assets, including the benefits of any Series Enhancement
issued with respect to any Series of Notes and the right to receive Pool
Collections and other amounts at the times and in the amounts specified in this
Article VIII or in the applicable Indenture Supplement to be deposited in
Collection Account and any Series Accounts (if so specified in the related
Indenture Supplement). The Notes do not represent obligations of, or interests
in, CMSC, CMF, the Transferor or the Servicer. The Notes are limited in right of
payment to Pool Collections on the Pledged Assets and other assets of the Issuer
allocable to the Notes as provided herein and in the applicable Indenture
Supplement.

            Section 8.03. ESTABLISHMENT OF ACCOUNTS.

            (a) ESTABLISHMENT OF COLLECTION ACCOUNT. The Collection Account
shall be established and maintained in accordance with the provisions of the
Transfer and Servicing Agreement. An Indenture Supplement may establish
sub-accounts to the Collection Account as specified in such Indenture Supplement
to effect allocations to a Series in accordance with such Indenture Supplement.
Funds on deposit in any subaccount of the Collection Account shall not be
commingled with (i) funds on deposit in any other subaccount of the Collection
Account or (ii) funds on deposit in the Collection Account which have not been
allocated to any subaccount of the Collection Account.

            (b) ESTABLISHMENT OF DISTRIBUTION ACCOUNT. The Paying Agent, for the
benefit of the Noteholders, shall cause to be established and maintained with
the Paying Agent, a non-interest bearing segregated trust account that is a
Qualified Account (the "DISTRIBUTION ACCOUNT") bearing a designation clearly
indicating that the funds deposited therein are held in

                                       53
<Page>

trust for the benefit of Noteholders. The Paying Agent shall possess all right,
title and interest in all funds on deposit from time to time in the Distribution
Account and in all proceeds thereof. The Distribution Account shall be under the
sole dominion and control of the Paying Agent for the benefit of Noteholders. If
the Distribution Account ceases at any time to be a Qualified Account, the
Indenture Trustee shall within 10 Business Days (or such longer period, not to
exceed 30 calendar days) establish a new Distribution Account which is a
Qualified Account, transfer any funds on deposit in the existing Distribution
Account to such new Distribution Account and from the date such new Distribution
Account is established, it shall be the "DISTRIBUTION ACCOUNT."

            (c) ESTABLISHMENT OF SERIES ACCOUNTS. If so provided in the related
Indenture Supplement, the Issuer, for the benefit of the Noteholders and other
Person as may be identified in such Indenture Supplement, shall establish and
maintain with the Indenture Trustee or its nominee in the name of the Indenture
Trustee one or more Series Accounts, which Series Accounts also shall be
Qualified Accounts (unless such requirement is waived in the related Indenture
Supplement). Each such Series Account shall bear a designation clearing
indicating that the funds deposited therein are held for the benefit of
Noteholders of such Series.

            Section 8.04. POOL COLLECTIONS AND ALLOCATIONS.

            (a) The Issuer shall cause the Servicer to deposit Pool Collections
into the Collection Account as promptly as possible after the receipt in a
Lockbox Account of such Pool Collections, but in no event later than the second
Business Day following the receipt in a Lockbox Account of such Pool
Collections.

            (b) The Issuer agrees that if any Pool Collections are received by
the Issuer in an account other than the Collection Account, such monies,
instruments, cash and other proceeds will not be commingled by the Issuer with
any of its other funds or property, if any, but will be held separate and apart
therefrom and will be held in trust by the Issuer for, and immediately remitted
to, the Indenture Trustee, with any necessary endorsement.

            (c) (i) Prior to the allocation of funds as set forth in clause
      (ii), the Indenture Trustee shall make the distributions set forth in
      Sections 3.02(c)(vi), 3.12 and 3.14(b) of the Transfer and Servicing
      Agreement.

                (ii) After making the distributions set forth in clause (i),
      the Indenture Trustee shall allocate all funds on deposit in the
      Collection Account to each Series based on the Series Percentage of such
      Series as set forth in the Indenture Supplement related to such Series.
      Amounts allocated to any Series shall not, except as specified in the
      related Indenture Supplement, be available to the Noteholders of any other
      Series. The Indenture Supplement shall specify how amounts allocated to
      such Series will be applied.

            (d) At any time a Series is in its Amortization Period, the Issuer
agrees that any Pool Collections that would otherwise be released to the Issuer
under the terms of any Indenture Supplement related to any other Series which is
not in its Amortization Period, will be allocated to such amortizing Series and
used to pay the principal of such amortizing Series. To the extent more than one
Series is in its Amortization Period, such funds will be allocated ratably

                                       54
<Page>

among each amortizing Series based on their respective Series Percentages.
Notwithstanding anything to the contrary, no Pool Collections that would
otherwise be released to the Issuer shall be paid to an amortizing Series unless
the terms of the related Indenture Supplement specifically require the
allocation of such funds to such amortizing Series.

            (e) On each Deposit Date, except as otherwise provided in an
Indenture Supplement, the Indenture Trustee shall pay to the Issuer the
remaining funds, if any, on deposit in the Collection Account on such Deposit
Date after giving effect to transfers to be made pursuant to Section 8.04(c).

            Section 8.05. RELEASE OF PLEDGED ASSETS.

            (a) The Indenture Trustee may, and when required by the provisions
of this Indenture or the other Transaction Documents shall, execute instruments
to release property from the lien of this Indenture, or convey the Indenture
Trustee's interest in the same, in a manner and under circumstances that are not
inconsistent with the provisions of this Indenture or the Transaction Documents.
No party relying on an instrument executed by the Indenture Trustee as provided
in this Article VIII shall be bound to ascertain the Indenture Trustee's
authority, inquire into the satisfaction of any conditions precedent or see to
the application of any monies.

            (b) The Indenture Trustee shall, at such time as there are no Notes
outstanding, release and transfer, without recourse, representation or warranty,
all of the Pledged Assets that secured the Notes (other than any cash held for
the payment of the Notes pursuant to Section 4.02) to the Issuer.

            Section 8.06. OFFICER'S CERTIFICATE.

            The Issuer shall provide the Indenture Trustee with at least seven
days' notice when requesting the Indenture Trustee to take any action pursuant
to Section 8.05(a), which notice shall be accompanied by copies of any
instruments involved, and the Indenture Trustee shall also require, as a
condition to such action, an Officer's Certificate stating that such action is
authorized hereunder and under the Transaction Documents and will not materially
and adversely impair the security for the Notes or the rights of the Noteholders
under this Indenture. The Indenture Trustee may rely, without independent
investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such
action.

            Section 8.07. MONEY FOR NOTE PAYMENTS TO BE HELD IN TRUST.

            All payments of amounts due and payable with respect to the Notes
that are to be made from amounts withdrawn from the Collection Account shall be
made on behalf of the Issuer by the Indenture Trustee or by the Paying Agent,
and no amounts so withdrawn from the Collection Account shall be paid over to or
at the direction of the Issuer except as provided in this Section 8.07, Section
8.04(d) or in the related Indenture Supplement.

            On or before each Distribution Date, in accordance with the
instructions of the Servicer, the Indenture Trustee shall deposit or cause to be
deposited in the Distribution Account

                                       55
<Page>

for each outstanding Series an aggregate sum sufficient to pay the amounts then
becoming due under the Notes of such outstanding Series, such sum to be held in
trust for the benefit of the Persons entitled thereto.

                                   ARTICLE IX

                    DISTRIBUTIONS AND REPORTS TO NOTEHOLDERS

            Distributions shall be made to, and reports shall be provided to,
Noteholders as set forth in the applicable Indenture Supplement. The identity of
the Noteholders with respect to distributions and reports shall be determined
according to the immediately preceding Record Date.

                                    ARTICLE X

                             SUPPLEMENTAL INDENTURES

            Section 10.01. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF
NOTEHOLDERS.

            (a) Without the consent of the Holders of any Notes but with prior
notice to the Rating Agencies and each Applicable Series Enhancer and upon
satisfaction of the Rating Agency Condition with respect to the Notes of all
Series, the Issuer, the Indenture Trustee, the Paying Agent, the Authentication
Agent and the Transfer Agent and Registrar, at any time and from time to time,
may enter into an indenture or indentures supplemental hereto for any of the
following purposes:

                  (i) to correct or amplify the description of any property at
      any time subject to the lien of this Indenture, or better to assure,
      convey and confirm to the Indenture Trustee any property subject, or
      required to be subjected, to the lien of this Indenture, or to subject to
      the lien of this Indenture additional property;

                  (ii) to add to the covenants of the Issuer, for the benefit of
      the Holders of the Notes, or to surrender any right or power herein
      conferred upon the Issuer;

                  (iii) to convey, transfer, assign, mortgage or pledge any
      property to or with the consent of the Indenture Trustee;

                  (iv) to cure any ambiguity, to correct or supplement any
      provision herein or in any supplemental indenture that may be inconsistent
      with any other provision herein or in any supplemental indenture or to
      make any other provisions with respect to matters or questions arising
      under this Indenture or in any supplemental indenture;

                  (v) to evidence and provide for the acceptance of the
      appointment hereunder by a successor indenture trustee with respect to the
      Notes and to add to or change any of the provisions of this Indenture as
      shall be necessary to facilitate the

                                       56
<Page>

      administration of the Pledged Assets hereunder by more than one trustee,
      pursuant to the requirements of Article VI;

                  (vi) to provide for the issuance of one or more new Series of
      Notes, in accordance with the provisions of Section 2.10; or

                  (vii) to provide for the termination of any Series Enhancement
      in accordance with the provisions of the related Indenture Supplement;
      PROVIDED, HOWEVER, that such action shall not adversely affect in any
      material respect the interests of any Noteholder, as evidenced by an
      Officer's Certificate of an Authorized Officer delivered to the Indenture
      Trustee (at the Issuer's expense).

The Indenture Trustee, the Paying Agent, the Authentication Agent and the
Transfer Agent and Registrar are hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

            (b) The Issuer, the Indenture Trustee, the Paying Agent, the
Authentication Agent and the Transfer Agent and Registrar also, without the
consent of any Noteholders of any outstanding Series but with prior notice to
the Rating Agencies and each Applicable Series Enhancer and upon satisfaction of
the Rating Agency Condition and the written consent of each Applicable Series
Enhancer with respect to the Notes of all outstanding Series, may enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, this Indenture or of modifying in any manner the rights of the Holders of
the Notes under this Indenture; PROVIDED, HOWEVER, that the Issuer shall have
delivered to the Indenture Trustee, the Paying Agent, the Authentication Agent
and the Transfer Agent and Registrar an Officer's Certificate, dated the date of
any such action, stating that the Issuer reasonably believes that such action
will not have a Material Adverse Effect. Additionally, notwithstanding the
preceding sentence, the Issuer, the Indenture Trustee, the Paying Agent, the
Authentication Agent and the Transfer Agent and Registrar also, without the
consent of any Noteholders of any outstanding Series, may enter into an
indenture or indentures supplemental hereto to add, modify or eliminate such
provisions as may be necessary or advisable in order to enable the Issuer (i) to
qualify as, and to permit an election to be made to cause the Issuer to be
treated as, a "financial asset securitization investment trust" as described in
the provisions of Section 860L of the Code, (ii) to avoid the imposition of
state or local income or franchise taxes imposed on the Issuer's property or its
income and (iii) to add, modify or eliminate such provisions as may be necessary
and desirable to implement any revisions to the Uniform Commercial Code as in
force in the applicable jurisdiction; PROVIDED, HOWEVER, that the Issuer, the
Indenture Trustee, the Paying Agent, the Authentication Agent and the Transfer
Agent and Registrar shall not enter into any such indenture or supplement unless
(w) the Issuer delivers to the Indenture Trustee, the Paying Agent, the
Authentication Agent and the Transfer Agent and Registrar and each Applicable
Series Enhancer an Officer's Certificate dated the date of such supplemental
indenture, stating that the Issuer reasonably believes that such supplemental
indenture will not have a Material Adverse Effect, (x) each Rating Agency has
notified the Issuer, the Servicer, the Indenture Trustee and each Applicable
Series Enhancer in writing that the Rating Agency Condition with respect to each
outstanding Series has been satisfied, (y) such amendment does not (without the
consent of the Indenture Trustee) affect the rights, duties or

                                       57
<Page>

obligations of the Indenture Trustee hereunder and (z) such amendment does not
(without the consent of the Paying Agent, the Authentication Agent or the
Transfer Agent and Registrar, as the case may be) affect the rights, duties or
obligations of the Paying Agent, the Authentication Agent or the Transfer Agent
and Registrar, as the case may be hereunder.

            Section 10.02. SUPPLEMENTAL INDENTURES WITH CONSENT OF NOTEHOLDERS.

            The Issuer, the Indenture Trustee, the Paying Agent, the
Authentication Agent and the Transfer Agent and Registrar also, with prior
notice to the Rating Agencies and with the consent of the Majority Investors, by
Act of such Holders delivered to the Issuer and the Indenture Trustee, may enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Noteholders of
all Series under this Indenture. If an indenture or indentures supplemental
hereto affects only the Noteholders of a particular Series of Notes, then the
consent of the Holders of a majority of the Series Outstanding Amount of such
Series shall be required to such indenture or indenture supplemental.
Notwithstanding the foregoing, no supplemental indenture shall, without the
consent of Holders of 100% of the Series Outstanding Amount of the Outstanding
Notes affected thereby:

            (a) change the due date of any payment of principal of or interest
on any Note, or reduce the principal amount thereof, the interest rate specified
thereon or the redemption price with respect thereto or change any place of
payment where, or the coin or currency in which, any Note or any interest
thereon is payable;

            (b) impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor to the payment of any such amount due on the Notes on or after the
respective due dates thereof, as provided in Article V (or, in the case of
redemption, on or after the Redemption Date);

            (c) reduce the percentage that constitutes a majority of the Series
Outstanding Amount of the Notes of any Series the consent of the Holders of
which is required for any such supplemental indenture, or the consent of the
Holders of which is required for any waiver of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences as provided for in this Indenture;

            (d) reduce the percentage of the Outstanding Amount of the Notes
which is required to direct the Indenture Trustee to sell or liquidate the
Pledged Assets if the proceeds of such sale would be insufficient to pay the
principal amount and accrued but unpaid interest on the Outstanding Notes;

            (e) decrease the percentage of the aggregate principal amount of the
Notes required to amend the sections of this Indenture that specify the
applicable percentage of the aggregate principal amount of the Notes of such
Series necessary to amend the Indenture or any Transaction Documents that
require such consent;

                                       58
<Page>

            (f) modify or alter the provisions of this Indenture regarding the
voting of Notes held by the Issuer, any other obligor on the Notes, the
Transferor, the Servicer or any Affiliate of any of the foregoing Persons; or

            (g) permit the creation of any Lien ranking prior to or on a parity
with the lien of this Indenture with respect to any part of the Pledged Assets
for any Notes or, except as otherwise permitted or contemplated herein,
terminate the lien of this Indenture on any such Pledged Assets at any time
subject hereto or deprive the Holder of any Note of the security provided by the
lien of this Indenture.

            It shall not be necessary for any Act of Noteholders under this
Section 10.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.

            Promptly after the execution by the Issuer, the Indenture Trustee,
the Paying Agent, the Authentication Agent and the Transfer Agent and Registrar
of any Supplement Indenture pursuant to this Section 10.02, the Paying Agent
shall mail to the Holders of the Notes to which such supplemental indenture
relates written notice setting forth in general terms the substance of such
supplement indenture; PROVIDED, HOWEVER, that any failure of the Paying Agent to
mail such notice, or any defect therein, shall not in any way impair or affect
the validity of any such supplemental indenture.

            Section 10.03. EXECUTION OF SUPPLEMENTAL INDENTURES.

            In executing, or permitting the additional trusts created by any
supplemental indenture permitted by this Article X or the modification thereby
of the trusts created by this Indenture, the Indenture Trustee, the Paying
Agent, the Authentication Agent and the Transfer Agent and Registrar shall be
entitled to receive, and subject to Section 6.01, shall be fully protected in
relying on, an Officer's Certificate stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The
Indenture Trustee may, but shall not be obligated to, enter into any such
supplemental indenture that affects the Indenture Trustee's own rights, duties,
liabilities or immunities under this Indenture or otherwise. The Paying Agent,
the Authentication Agent and the Transfer Agent and Registrar, as the case may
be, may, but shall not be obligated to, enter into any such supplemental
indenture that affects their respective rights, duties, liabilities or
immunities under this Indenture or otherwise.

            Section 10.04. EFFECT OF SUPPLEMENTAL INDENTURE.

            Upon the execution of any supplemental indenture under this Article
X, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes, and
every Holder of Notes theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

            Section 10.05. REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES.

            Notes authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article X may, and if required by the
Authentication Agent shall, bear

                                       59
<Page>

a notation in form approved by the Indenture Trustee and the Authentication
Agent as to any matter provided for in such supplemental indenture. If the
Issuer shall so determine, new Notes modified so as to conform, in the opinion
of the Indenture Trustee and the Authentication Agent and the Issuer, to any
such supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Authentication Agent in exchange for the
Outstanding Notes.

                                   ARTICLE XI

                                   DEFEASANCE

            Section 11.01. DEFEASANCE.

            Notwithstanding anything to the contrary in this Indenture or any
Indenture Supplement:

            (a) The Issuer may at its option be discharged from its obligations
hereunder with respect to any Series or all outstanding Series (each, a
"DEFEASED SERIES") on the date the applicable conditions set forth in subsection
11.01(c) are satisfied (a "DEFEASANCE"); PROVIDED, HOWEVER, that the following
rights, obligations, powers, duties and immunities shall survive with respect to
each Defeased Series until otherwise terminated or discharged hereunder: (i) the
rights of the Holders of Notes of the Defeased Series to receive payments in
respect of principal of and interest on such Notes when such payments are due;
(ii) the Issuer's obligations with respect to such Notes under Sections 2.05 and
2.06; (iii) the rights, powers, trusts, duties, and immunities of the Indenture
Trustee, the Paying Agent and the Transfer Agent and Registrar hereunder; and
(iv) this Section 11.01 and Section 12.14.

            (b) Subject to Section 11.01(c), no Pool Collections shall be
allocated to any Defeased Series.

            (c) The following shall be the conditions precedent to any
Defeasance under Section 11.01(a):

                  (i) the Issuer irrevocably shall have deposited or caused to
      be deposited with the Indenture Trustee, under the terms of an irrevocable
      trust agreement in form and substance satisfactory to the Indenture
      Trustee and any Applicable Series Enhancer, as trust funds in trust for
      making the payments described below, (A) Dollars in an amount equal to, or
      (B) Eligible Investments which through the scheduled payment of principal
      and interest in respect thereof will provide, not later than the due date
      of payment thereon, money in an amount equal to, or (C) a combination
      thereof, in each case sufficient to pay and discharge, and which shall be
      applied by the Indenture Trustee to pay and discharge, all remaining
      scheduled interest and principal payments on all Outstanding Notes of each
      Defeased Series and all other amounts owing in respect of such Defeased
      Series (including all amounts owing under any related Enhancement
      Agreement to any Series Enhancer) on the dates scheduled for such payments
      in this Indenture and the applicable Indenture Supplements;

                                       60
<Page>

                  (ii) a statement from a firm of nationally recognized
      independent public accountants (who also may render other services to the
      Issuer) to the effect that such deposit is sufficient to pay the amounts
      specified in clause (i) above;

                  (iii) prior to its first exercise of its right pursuant to
      this Section 11.01 with respect to a Defeased Series to substitute money
      or Eligible Investments for Receivables, the Issuer shall have delivered
      to the Indenture Trustee an Opinion of Counsel to the effect that such
      deposit and termination of obligations will not result in the Issuer being
      required to register as an "investment company" within the meaning of the
      Investment Company Act;

                  (iv) the Issuer shall have delivered to the Indenture Trustee
      and each Applicable Series Enhancer an Officer's Certificate of the Issuer
      stating that the Issuer reasonably believes that such deposit and
      termination of obligations will not, based on the facts known to such
      officer at the time of such certification, then cause an Event of Default
      or Amortization Event with respect to any Series or any event that, with
      the giving of notice or the lapse of time, would result in the occurrence
      of a Event of Default or Amortization Event with respect to any Series;

                  (v) the Rating Agency Condition shall have been satisfied and
      the Issuer shall have delivered copies of such written notice to the
      Servicer, the Indenture Trustee and each Applicable Series Enhancer; and

                  (vi) the Issuer shall have delivered to the Indenture Trustee
      and each Applicable Series Enhancer a Tax Opinion.

                                   ARTICLE XII

                                  MISCELLANEOUS

            Section 12.01. COMPLIANCE CERTIFICATES AND OPINIONS, ETC.

            (a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture or any other
Transaction Document, the Issuer shall furnish to the Indenture Trustee (i) an
Officer's Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with,
(ii) an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with and (iii) an Independent
Certificate from a firm of certified public accountants meeting the applicable
requirements of this Section 12.01, except that, in the case of any such
application or request as to which the furnishing of specific documents is
required by any provision of this Indenture, no additional certificate or
opinion need be furnished.

            Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

                                       61
<Page>

                  (i) a statement that each signatory of such certificate or
      opinion has read or has caused to be read such covenant or condition and
      the definitions herein relating thereto;

                  (ii) a brief statement as to the nature and scope of the
      examination or investigation upon which the statements or opinions
      contained in such certificate or opinion are based;

                  (iii) a statement that, in the opinion of each such signatory,
      such signatory has made such examination or investigation as is necessary
      to enable such signatory to express an informed opinion as to whether or
      not such covenant or condition has been complied with; and

                  (iv) a statement as to whether, in the opinion of each such
      signatory, such condition or covenant has been complied with.

            (b) (i) Prior to the deposit of any Pledged Assets or other property
      or securities with the Indenture Trustee that is to be made the basis for
      the release of any property or securities subject to the lien of this
      Indenture, the Issuer shall, in addition to any obligation imposed in
      Section 12.01(a) or elsewhere in this Indenture, furnish to the Indenture
      Trustee an Officer's Certificate certifying or stating the opinion of each
      person signing such certificate as to the fair value (within 90 days of
      such deposit) to the Issuer of the Pledged Assets or other property or
      securities to be so deposited.

                  (ii) Whenever the Issuer is required to furnish to the
      Indenture Trustee an Officer's Certificate certifying or stating the
      opinion of any signer thereof as to the matters described in clause (i)
      above, the Issuer also shall deliver to the Indenture Trustee an
      Independent Certificate as to the same matters, if the fair value to the
      Issuer of the securities to be so deposited and of all other such
      securities made the basis of any such withdrawal or release since the
      commencement of the then-current fiscal year of the Issuer, as set forth
      in the certificates delivered pursuant to clause (i) above and this clause
      (ii), is 10% or more of the Outstanding Amount of the Notes, but such a
      certificate need not be furnished with respect to any securities so
      deposited if the fair value thereof to the Issuer as set forth in the
      related Officer's Certificate is less than 10% of the Outstanding Amount
      of the Notes.

                  (iii) Other than as provided in the Granting Clause, whenever
      any property or securities are to be released from the lien of this
      Indenture, the Issuer also shall furnish to the Indenture Trustee an
      Officer's Certificate certifying or stating the opinion of each person
      signing such certificate as to the fair value (within 90 days of such
      release) of the property or securities proposed to be released and stating
      that in the opinion of such person the proposed release will not impair
      the security under this Indenture in contravention of the provisions
      hereof.

                                       62
<Page>

                  (iv) Whenever the Issuer is required to furnish to the
      Indenture Trustee an Officer's Certificate certifying or stating the
      opinion of any signer thereof as to the matters described in clause (iii)
      above, the Issuer also shall furnish to the Indenture Trustee an
      Independent Certificate as to the same matters if the fair value of the
      property or securities and of all other property, other than as provided
      in the Granting Clause, or securities released from the lien of this
      Indenture since the commencement of the then current calendar year, as set
      forth in the certificates required by clause (iii) above and this clause
      (iv), equals 10% or more of the Outstanding Amount of the Notes, but such
      certificate need not be furnished in the case of any release of property
      or securities if the fair value thereof as set forth in the related
      Officer's Certificate is less than 10% of the then Outstanding Amount of
      the Notes.

                  (v) Notwithstanding any provision of this Section 12.01, the
      Issuer may (A) collect, liquidate, sell or otherwise dispose of
      Receivables as and to the extent permitted or required by the Transaction
      Documents and (B) make cash payments out of the Series Accounts as and to
      the extent permitted or required by the Transaction Documents, and the
      provisions of the Granting Clause shall apply.

            Section 12.02. FORM OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE.

            In any case where several matters are required to be certified by,
or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

            Any certificate or opinion of a Responsible Officer of the Issuer
may be based, insofar as it relates to legal matters, upon a certificate or
opinion of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which such officer's
certificate or opinion is based are erroneous. Any such certificate of a
Responsible Officer or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Servicer or the Issuer, stating that the information
with respect to such factual matters is in the possession of the Servicer or the
Issuer, unless such Responsible Officer or counsel knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.

            In any case in which any Person is required to make, give or execute
two or more applications, requests, consents, certificates, statements, opinions
or other instruments under this Indenture, they may, but need not, be
consolidated and form one instrument.

            Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application or
as evidence of the Issuer's compliance with any term hereof, it is intended that
the truth and accuracy, at the time of the granting of such

                                       63
<Page>

application or at the effective date of such certificate or report (as the case
may be), of the facts and opinions stated in such document shall in such case be
conditions precedent to the right of the Issuer to have such application granted
or to the sufficiency of such certificate or report. The foregoing shall not,
however, be construed to affect the Indenture Trustee's right to rely upon the
truth and accuracy of any statement or opinion contained in any such document as
provided in Article VI.

            Section 12.03. ACTS OF NOTEHOLDERS.

            (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by an agent
duly appointed in writing and satisfying any requisite percentages as to the
minimum number or Dollar value of outstanding principal amount represented by
such Noteholders; and except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, to the extent hereby expressly required, to the Issuer.
Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "ACT" of the Noteholders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and conclusive in favor of the Indenture Trustee and
the Issuer, if made in the manner provided in this Section 12.03.

            (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner which the Indenture Trustee
deems sufficient.

            (c) The ownership of Notes shall be proved by the Note Register.

            (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes shall bind the Holder (and any
transferee thereof) of every Note issued upon the registration thereof in
exchange therefor or in lieu thereof, in respect of anything done, omitted or
suffered to be done by the Indenture Trustee or the Issuer in reliance thereon,
whether or not notation of such action is made upon such Note.

                                       64
<Page>

            Section 12.04. NOTICES TO ISSUER, INDENTURE TRUSTEE, PAYING AGENT,
AUTHENTICATION AGENT AND TRANSFER AGENT AND REGISTRAR.

            All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at,
sent by facsimile to, sent by courier at or mailed by certified or registered
mail, return receipt requested, to (a) in the case of the Issuer, to 40 Apple
Ridge Road, Suite 4000, Danbury, Connecticut 06810, Attention: Controller, (b)
in the case of the Indenture Trustee, to the Corporate Trust Office, (c) in the
case of the Paying Agent, the Authentication Agent or the Transfer Agent and
Registrar, to 101 Barclay Street, Floor 21 West, New York, New York 10286 and
(d) in the case of the Rating Agency for a particular Series, the address, if
any, specified in the Indenture Supplement relating to such Series; or, as to
each party, at such other address as shall be designated by such party in a
written notice to each other party.

            Section 12.05. NOTICES TO NOTEHOLDERS; WAIVER.

            In any case in which this Indenture provides for notice to
Noteholders or a Series Enhancer of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed by
registered or certified mail or first class postage prepaid or national
overnight courier service to each Noteholder or Series Enhancer affected by such
event, at the Noteholder's address as it appears on the Note Register or at the
Series Enhancer's address for notices set forth in the relevant agreement
relating to Series Enhancement, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice. If notice to
Noteholders or a Series Enhancer is given by mail, neither the failure to mail
such notice nor any defect in any notice so mailed to any particular Person
shall affect the sufficiency of such notice with respect to other Persons, and
any notice that is mailed in the manner herein provided shall conclusively be
presumed to have been duly given.

            In any case in which this Indenture provides for notice in any
manner, such notice may be waived in writing by any Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Noteholders shall be filed with
the Indenture Trustee (with a copy to the Paying Agent), but such filing shall
not be a condition precedent to the validity of any action taken in reliance
upon such waiver.

            If, by reason of the suspension of regular mail service as a result
of a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee or the Paying Agent, as
the case may be, shall be deemed to be a sufficient giving of such notice.

            Section 12.06. ALTERNATE PAYMENT AND NOTICE PROVISIONS.

            Notwithstanding any provision of this Indenture or any of the Notes
to the contrary, the Issuer, with the consent of the Paying Agent, may enter
into any agreement with any Holder of a Note providing for a method of payment,
or notice by the Indenture Trustee or any Paying Agent to such Holder, that is
different from the methods provided for in this Indenture for such payments or
notices. The Issuer shall furnish to the Indenture Trustee or/and

                                       65
<Page>

the Paying Agent a copy of each such agreement and the Paying Agent or the
Indenture Trustee, as the case may be, shall cause payments to be made and
notices to be given in accordance with such agreements.

            Section 12.07. EFFECT OF HEADINGS AND TABLE OF CONTENTS.

            The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction hereof.

            Section 12.08. SUCCESSORS AND ASSIGNS.

            All covenants and agreements in this Indenture by the Issuer shall
bind its successors and assigns, whether so expressed or not.

            Section 12.09. SEPARABILITY.

            If any provision in this Indenture or in the Notes shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

            Section 12.10. BENEFITS OF INDENTURE.

            Nothing in this Indenture or in the Notes, express or implied, shall
give to any Person other than the parties hereto and their successors hereunder,
any Series Enhancer and the Noteholders, any benefit.

            Section 12.11. LEGAL HOLIDAYS.

            If the date on which any payment is due shall not be a Business Day,
then (notwithstanding any other provision of the Notes or this Indenture)
payment need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the date on which
nominally due, and no interest shall accrue for the period from and after any
such nominal date.

            Section 12.12. GOVERNING LAW.

            THE INDENTURE AND EACH NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF NEW YORK, INCLUDING ss.5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES.

            Section 12.13. COUNTERPARTS.

            This Indenture may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

                                       66
<Page>

            Section 12.14. NO PETITION.

            The Indenture Trustee, the Paying Agent, the Authentication Agent
and the Transfer Agent and Registrar, by entering into this Indenture, and each
Noteholder, by accepting a Note, hereby covenant and agree that they will not at
any time institute against the Issuer, the Transferor or CMF, or join in any
institution against the Issuer, the Transferor or CMF, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or any
of the Transaction Documents until the expiration of one year and one day after
payment in full of the latest maturing Note issued by the Issuer under this
Indenture. This Section shall survive termination of the Indenture.

            Section 12.15 PROVISION OF INFORMATION TO RATING AGENCIES.

            At the request of a Rating Agency, the Indenture Trustee will
provide such Rating Agency with any reports and other written information it has
received from the Servicer for distribution to Noteholders.

                                       67
<Page>

                  IN WITNESS WHEREOF, the Issuer, the Indenture Trustee, the
Paying Agent, the Authentication Agent and the Transfer Agent and Registrar have
caused this Indenture to be duly executed by their respective officers thereunto
duly authorized and attested, all as of the day and year first above written.

                                    APPLE RIDGE FUNDING LLC,
                                         as Issuer

                                    By:  /S/ John M. Peterson
                                       -----------------------------------------
                                         Name:  John M. Peterson
                                         Title: Assistant Treasurer

                                    BANK ONE, NATIONAL ASSOCIATION
                                         as Indenture Trustee

                                    By:  /S/  Steve M. Husbands
                                       -----------------------------------------
                                         Name:  Steve M. Husbands
                                         Title: Assistant Vice President

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

                                    By:  Marie E. Trimboli
                                       -----------------------------------------
                                         Name:  Marie E. Trimboli
                                         Title: Assistant Treasurer

                      [Signature Page to Master Indenture]
<Page>

DISTRICT OF COLUMBIA                        )
                                            ) ss.:
COUNTY OF                                   )
           --------------------

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

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

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

                                                     [Seal]

My commission expires:

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

<Page>

STATE OF NEW YORK                   )
                                    ) ss.:
COUNTY OF NEW YORK                  )

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

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

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

                                                     [Seal]

My commission expires:

-----------------------------
<Page>

STATE OF NEW YORK                           )
                                            ) ss.:
COUNTY OF                                   )
           --------------------

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

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

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

                                                     [Seal]

My commission expires:

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]