Document:

<PAGE>

                                                                     Exhibit 4.2

                               TRANSFER AGREEMENT

                                     between

                      CONSECO FINANCE SECURITIZATIONS CORP.

                                    Purchaser

                                       and

                              CONSECO FINANCE CORP.

                                     Seller

                                   dated as of

                                 January 1, 2001
<PAGE>

<TABLE>
<S>                                                                                                             <C>
ARTICLE I - DEFINITIONS......................................................................................    1
         SECTION 1.1.          General.......................................................................    1
         SECTION 1.2.          Specific Terms................................................................    1
         SECTION 1.3.          Usage of Terms................................................................    3
         SECTION 1.4.          No Recourse...................................................................    3

ARTICLE II - CONVEYANCE OF THE INITIAL AND ADDITIONAL LOANS AND THE INITIAL OTHER CONVEYED PROPERTY..........    3
         SECTION 2.1.          Conveyance of the Initial and Additional Loans and the Initial Other
                               Conveyed Property.............................................................    3
         SECTION 2.2.          Purchase Price of Initial and Additional Loans................................    4
         SECTION 2.3.          Conveyance of Subsequent Loans and Subsequent Other Conveyed Property.........    4

ARTICLE III - REPRESENTATIONS AND WARRANTIES.................................................................    5
         SECTION 3.1.          Representations and Warranties of CFC.........................................    5
         SECTION 3.2.          Representations and Warranties of CFSC........................................    7

ARTICLE IV - COVENANTS OF CFC................................................................................    9
         SECTION 4.1.          Transfer of Loans.............................................................    9
         SECTION 4.2.          Costs and Expenses............................................................    9
         SECTION 4.3.          Indemnification...............................................................    9

ARTICLE V - REPURCHASES......................................................................................    9
         SECTION 5.1.          Repurchase of Loans Upon Breach of Warranty...................................   10
         SECTION 5.2.          Reassignment of Purchased Loans...............................................   10
         SECTION 5.3.          Waivers.......................................................................   11

ARTICLE VI - MISCELLANEOUS...................................................................................   11
         SECTION 6.1.          Liability of CFC..............................................................   11
         SECTION 6.2.          Merger or Consolidation of CFC or CFSC........................................   11
         SECTION 6.3.          Limitation on Liability of CFC and Others.....................................   11
         SECTION 6.4.          Amendment.....................................................................   12
         SECTION 6.5.          Notices.......................................................................   13
         SECTION 6.6.          Merger and Integration........................................................   13
         SECTION 6.7.          Severability of Provisions....................................................   13
         SECTION 6.8.          Intention of the Parties......................................................   13
         SECTION 6.9.          Governing Law.................................................................   13
         SECTION 6.10.         Counterparts..................................................................   14
         SECTION 6.11.         Conveyance of the Initial and Additional Loans and the Initial Other
                               Conveyed Property to the Trust................................................   14
         SECTION 6.12.         Nonpetition Covenant..........................................................   14
</TABLE>
<PAGE>

                                    SCHEDULES

Schedule A - Schedule of Initial and Additional Loans

                                    EXHIBITS

Exhibit A - Form of Subsequent Transfer Agreement
<PAGE>

                               TRANSFER AGREEMENT
                               ------------------

          THIS TRANSFER AGREEMENT, dated as of January 1, 2001, executed between
Conseco Finance Securitizations Corp., a Minnesota corporation, as purchaser
("CFSC"), and Conseco Finance Corp., a Delaware corporation, as seller ("CFC").

                              W I T N E S S E T H:
                              - - - - - - - - - -

          WHEREAS, CFSC has agreed to purchase from CFC and CFC, pursuant to
this Agreement, is transferring to CFSC the home equity loans specified in the
Schedule of Initial and Additional Loans attached hereto as Schedule A (the
"Initial and Additional Loans") and the Initial Other Conveyed Property; and

          WHEREAS, CFSC has agreed to purchase from CFC, and CFC has agreed to
transfer to CFSC, the Subsequent Loans and Subsequent Other Conveyed Property,
in an amount set forth herein, prior to April 13, 2001.

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter contained, and for other good and valuable consideration,
the receipt of which is acknowledged, CFSC and CFC, intending to be legally
bound, hereby agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

          SECTION 1.1. General.  The specific terms defined in this Article
                       -------
include the plural as well as the singular.  The words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or other subdivision, and Article,
Section, Schedule and Exhibit references, unless otherwise specified, refer to
Articles and Sections of and Schedules and Exhibits to this Agreement.
Capitalized terms used herein without definition shall have the respective
meanings assigned to such terms in the Pooling and Servicing Agreement, dated as
of January 1, 2001, by and among Conseco Finance Securitizations Corp. (as
Seller), Conseco Finance Corp. (as Originator and Servicer), and U.S. Bank Trust
National Association, as Trustee (the "Trustee") pertaining to the Trust (as
defined herein).

          SECTION 1.2. Specific Terms.  Whenever used in this Agreement, the
                       --------------
following words and phrases, unless the context otherwise requires, shall have
the following meanings:

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

          "Closing Date" means January 31, 2001.
           ------------

          "Initial and Additional Loans" means the closed-end home equity loans
           ----------------------------
identified on the Schedule of Initial and Additional Loans attached hereto as
Schedule A, including without
<PAGE>

limitation all related mortgages, deeds of trust and security deeds and any and
all rights to receive payments due pursuant thereto after the Cut-off Date.

          "Initial Other Conveyed Property" means (i) all rights under any
           -------------------------------
hazard, flood or other individual insurance policy on the real estate securing
each Initial and Additional Loan for the benefit of the creditor of such Loan,
(ii) all rights CFC may have against the originating lender with respect to each
Initial and Additional Loan originated by a lender other than CFC, (iii) all
rights under the Errors and Omissions Protection Policy and the Fidelity Bond as
such policy and bond relate to the Initial and Additional Loans, (iv) all rights
under any title insurance policies, if applicable, on any of the properties
securing Initial and Additional Loans, and (v) proceeds and products of the
foregoing.

          "Other Conveyed Property" means the Initial Other Conveyed Property
           -----------------------
conveyed by CFC to CFSC pursuant to this Agreement together with any and all
Subsequent Other Conveyed Property conveyed by CFC to CFSC pursuant to each
Subsequent Transfer Agreement.

          "Pooling and Servicing Agreement" means the Pooling and Servicing
           -------------------------------
Agreement, dated as of January 1, 2001, executed and delivered by Conseco
Finance Corp., as Originator and Servicer, Conseco Finance Securitizations
Corp., as Seller, and the Trustee pertaining to the Trust.

          "Related Documents" means the Certificates, the Pooling and Servicing
           -----------------
Agreement, each Subsequent Transfer Agreement and the Underwriting Agreement
among CFC, CFSC and the underwriters of the Certificates and the Insurance
Agreement.  The Related Documents to be executed by any party are referred to
herein as "such party's Related Documents," "its Related Documents" or by a
similar expression.

          "Repurchase Event" means the occurrence of a breach of any of CFC's
           ----------------
representations and warranties hereunder or under any Subsequent Transfer
Agreement or any other event which requires the repurchase of a Loan by CFC
under the Pooling and Servicing Agreement.

          "Schedule of Initial and Additional Loans" means the schedule of all
           ----------------------------------------
Loans sold and transferred pursuant to this Agreement which is attached hereto
as Schedule A.

          "Schedule of Loans" means the Schedule of Initial and Additional Loans
           -----------------
attached hereto as Schedule A as supplemented by each Schedule of Subsequent
Loans attached to each Subsequent Transfer Agreement as Schedule A.

          "Schedule of Subsequent Loans" means the schedule of all Loans sold
           ----------------------------
and transferred pursuant to a Subsequent Transfer Agreement which is attached to
such Subsequent Transfer Agreement as Schedule A, which Schedule of Subsequent
Loans shall supplement the Schedule of Initial and Additional Loans.

          "Subsequent Loans" means the Loans specified in the Schedule of
           ----------------
Subsequent Loans attached as Schedule A to each Subsequent Transfer Agreement.

                                       2
<PAGE>

          "Subsequent Other Conveyed Property" means the Subsequent Other
           ----------------------------------
Conveyed Property conveyed by CFC to CFSC pursuant to each Subsequent Transfer
Agreement.

          "Subsequent Transfer Agreement" shall have the meaning given in
           -----------------------------
Section 2.3(b)(iii).

          "Trust" means the trust created by the Pooling and Servicing Agreement
           -----
known as Conseco Finance Home Equity Loan Trust 2001-A, the estate of which
consists of the Trust Fund.

          "Trust Fund" means the property and proceeds of every description
           ----------
conveyed by CFSC to the Trustee pursuant to the Pooling and Servicing Agreement
and pursuant to any Subsequent Transfer Instrument, together with the
Certificate Account and any Capitalized Interest Account and Pre-Funding Account
(including all investments of the Certificate Account and all proceeds
therefrom).

          "Trustee" means U.S. Bank Trust National Association, a national
           -------
banking association organized and existing under the laws of the United States,
not in its individual capacity but solely as trustee of the Trust, and any
successor trustee appointed and acting pursuant to the Pooling and Servicing
Agreement.

          SECTION 1.3. Usage of Terms.  With respect to all terms used in this
                       --------------
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other gender; references to "writing" include
printing, typing, lithography, and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments thereto or changes therein entered into in accordance with
their respective terms and not prohibited by this Agreement or the Pooling and
Servicing Agreement; references to Persons include their permitted successors
and assigns; and the terms "include" or "including" mean "include without
limitation" or "including without limitation."

          SECTION 1.4. No Recourse.  Without limiting the obligations of CFC
                       -----------
hereunder, no recourse may be taken, directly or indirectly, under this
Agreement or any certificate or other writing delivered in connection herewith
or therewith, against any stockholder, officer or director, as such, of CFC, or
of any predecessor or successor of CFC.

                                   ARTICLE II
                 CONVEYANCE OF THE INITIAL AND ADDITIONAL LOANS
                    AND THE INITIAL OTHER CONVEYED PROPERTY

          SECTION 2.1. Conveyance of the Initial and Additional Loans and the
                       ------------------------------------------------------
Initial Other Conveyed Property.  Subject to the terms and conditions of this
-------------------------------
Agreement, CFC hereby sells, transfers, assigns, and otherwise conveys to CFSC
without recourse (but without limitation of its obligations in this Agreement or
in the Pooling and Servicing Agreement), and CFSC hereby purchases, all right,
title and interest of CFC in and to the Initial and Additional Loans and the
Initial Other Conveyed Property.  It is the intention of CFC and CFSC that the
transfer and assignment contemplated by this Agreement shall constitute a sale
of the Initial and Additional Loans and the Initial Other Conveyed Property from
CFC to CFSC, conveying good

                                       3
<PAGE>

title thereto free and clear of any Liens, and the Initial and Additional Loans
and the Initial Other Conveyed Property shall not be part of CFC's estate in the
event of the filing of a bankruptcy petition by or against CFC under any
bankruptcy or similar law.

          SECTION 2.2. Purchase Price of Initial and Additional Loans.
                       ----------------------------------------------
Simultaneously with the conveyance of the Initial and Additional Loans and the
Initial Other Conveyed Property to CFSC, CFSC has (a) paid or caused to be paid
to or upon the order of CFC approximately $622,004,430 by wire transfer of
immediately available funds (representing the proceeds to CFSC from the sale of
the Initial and Additional Loans after (i) deducting expenses incurred by CFSC
in connection with such sale and (ii) depositing the Pre-Funded Amount in the
Pre-Funding Account and $0.00 in the Capitalized Interest Account); and (b)
delivered to CFC, or its designee, the Class B-2 Certificates, Class B-3I
Certificates and Class C Certificates.

          SECTION 2.3. Conveyance of Subsequent Loans and Subsequent Other
                       ---------------------------------------------------
Conveyed Property.
-----------------

          (a) Subject to the conditions set forth in paragraph (b) below and the
     terms and conditions in the related Subsequent Transfer Agreement, in
     consideration of CFSC's delivery on the related Subsequent Transfer Date to
     or upon the order of CFC of an amount equal to the purchase price of the
     Subsequent Loans (as set forth in the related Subsequent Transfer
     Agreement), CFC hereby agrees to sell, transfer, assign, and otherwise
     convey to CFSC without recourse (but without limitation of its obligations
     in this Agreement and the related Subsequent Transfer Agreement), and CFSC
     hereby agrees to purchase all right, title and interest of CFC in and to
     the Subsequent Loans and the Subsequent Other Conveyed Property described
     in the related Subsequent Transfer Agreement.

          (b) CFC shall transfer to CFSC, and CFSC shall acquire, the Subsequent
     Loans and the Subsequent Other Conveyed Property to be transferred on any
     Subsequent Transfer Date only upon the satisfaction of each of the
     following conditions on or prior to such Subsequent Transfer Date:

              (i)   CFSC shall have provided the Trustee and the Rating Agencies
          with an Addition Notice at least five Business Days prior to the
          Subsequent Transfer Date and shall have provided any information
          reasonably requested by the Trustee with respect to the Subsequent
          Loans;

              (ii)  CFC shall have delivered the related Loan File for each
          Subsequent Loan to the Trustee at least two Business Days prior to the
          Subsequent Transfer Date;

              (iii) CFC shall have delivered to CFSC a duly executed
          Subsequent Transfer Agreement substantially in the form of Exhibit A
          hereto (the "Subsequent Transfer Agreement"), which shall include a
          List of Loans identifying the related Subsequent Loans;

              (iv)  as of each Subsequent Transfer Date, as evidenced by
          delivery of the Subsequent Transfer Agreement, neither CFC nor CFSC
          shall be insolvent nor

                                       4
<PAGE>

          shall they have been made insolvent by such transfer nor shall they be
          aware of any pending insolvency;

               (v)   such transfer shall not result in a material adverse tax
          consequence to the Trust (including the REMIC) or the
          Certificateholders or Class C Certificateholder;

               (vi)  the Pre-Funding Period shall not have ended; and

               (vii) each other condition set forth in Section 2.03(b) and, if
          applicable, Section 2.03(c) of the Pooling and Servicing Agreement
          shall have been satisfied.

          (c)  CFC covenants to transfer to CFSC pursuant to paragraph (a) above
     Subsequent Loans with aggregate Scheduled Principal Balances of
     approximately equal to $0.00; provided, however, that the sole remedy of
                                   --------  -------
     CFSC with respect to a failure of such covenant shall be to enforce the
     provisions of Section 8.08 of the Pooling and Servicing Agreement.

                                  ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

          SECTION 3.1. Representations and Warranties of CFC.  CFC makes the
                       -------------------------------------
following representations and warranties, on which CFSC relies in purchasing the
Initial and Additional Loans and the Initial Other Conveyed Property and in
transferring the Initial and Additional Loans and the Initial Other Conveyed
Property to the Trustee under the Pooling and Servicing Agreement.  Such
representations are made as of the execution and delivery of this Agreement, but
shall survive the sale, transfer and assignment of the Initial and Additional
Loans and the Initial Other Conveyed Property hereunder and the sale, transfer
and assignment thereof by CFSC to the Trustee under the Pooling and Servicing
Agreement.  CFC and CFSC agree that CFSC will assign to the Trustee all of
CFSC's rights under this Agreement and that the Trustee will thereafter be
entitled to enforce this Agreement against CFC in the Trustee's own name.

          (a)  Representations Regarding Loans.  The representations and
               -------------------------------
     warranties set forth in Sections 3.02, 3.04 and 3.05 of the Pooling and
     Servicing Agreement are true and correct.

          (b)  Organization and Good Standing.  CFC has been duly organized and
               ------------------------------
     is validly existing as a corporation in good standing under the laws of the
     State of Delaware, with power and authority to own its properties and to
     conduct its business as such properties are currently owned and such
     business is currently conducted, and had at all relevant times, and now
     has, power, authority and legal right to acquire, own and sell the Initial
     and Additional Loans and the Initial Other Conveyed Property transferred to
     CFSC.

          (c)  Due Qualification.  CFC is duly qualified to do business as a
               -----------------
     foreign corporation in good standing, and has obtained all necessary
     licenses and approvals, in all jurisdictions in which the ownership or
     lease of its property or the conduct of its business requires such
     qualification.

                                       5
<PAGE>

          (d) Power and Authority.  CFC has the power and authority to execute
              -------------------
     and deliver this Agreement and its Related Documents and to carry out its
     terms and their terms, respectively; CFC has full power and authority to
     sell and assign the Initial and Additional Loans and the Initial Other
     Conveyed Property to be sold and assigned to and deposited with CFSC
     hereunder and has duly authorized such sale and assignment to CFSC by all
     necessary corporate action; and the execution, delivery and performance of
     this Agreement and CFC's Related Documents have been duly authorized by CFC
     by all necessary corporate action.

          (e) Valid Sale; Binding Obligations.  This Agreement and CFC's Related
              -------------------------------
     Documents have been duly executed and delivered; shall effect a valid sale,
     transfer and assignment of the Initial and Additional Loans and the Initial
     Other Conveyed Property, enforceable against CFC and creditors of and
     purchasers from CFC; and constitute legal, valid and binding obligations of
     CFC enforceable in accordance with their respective terms, except as
     enforceability may be limited by bankruptcy, insolvency, reorganization or
     other similar laws affecting the enforcement of creditors' rights generally
     and by equitable limitations on the availability of specific remedies,
     regardless of whether such enforceability is considered in a proceeding in
     equity or at law.

          (f) No Violation.  The consummation of the transactions contemplated
              ------------
     by this Agreement and the Related Documents and the fulfillment of the
     terms of this Agreement and the Related Documents shall not conflict with,
     result in any breach of any of the terms and provisions of or constitute
     (with or without notice, lapse of time or both) a default under, the
     certificate of incorporation or bylaws of CFC, or any indenture, agreement,
     mortgage, deed of trust or other instrument to which CFC is a party or by
     which it is bound, or result in the creation or imposition of any Lien,
     upon any of its properties pursuant to the terms of any  such indenture,
     agreement, mortgage, deed of trust or other instrument, other than this
     Agreement and the Pooling and Servicing Agreement, or violate any law,
     order, rule or regulation applicable to CFC of any court or of any federal
     or state regulatory body, administrative agency or other governmental
     instrumentality having jurisdiction over CFC or any of its properties.

          (g) No Proceedings.  There are no proceedings or investigations
              --------------
     pending or, to CFC's knowledge, threatened against CFC, before any court,
     regulatory body, administrative agency or other tribunal or governmental
     instrumentality having jurisdiction over CFC or its properties (i)
     asserting the invalidity of this Agreement or any of the Related Documents,
     (ii) seeking to prevent the issuance of the Certificates or the
     consummation of any of the transactions contemplated by this Agreement or
     any of the Related Documents, (iii) seeking any determination or ruling
     that might materially and adversely affect the performance by CFC of its
     obligations under, or the validity or enforceability of, this Agreement or
     any of the Related Documents or (iv) seeking to affect adversely the
     federal income tax or other federal, state or local tax attributes of, or
     seeking to impose any excise, franchise, transfer or similar tax upon, the
     transfer and acquisition of the Initial and Additional Loans and the
     Initial Other Conveyed Property hereunder or under the Pooling and
     Servicing Agreement.

                                       6
<PAGE>

          (h) Chief Executive Office.  The chief executive office of CFC is
              ----------------------
     located at 1100 Landmark Towers, 345 St. Peter Street, Saint Paul, MN
     55102-1639.

          (i) Licensing.  CFC is duly licensed in each state in which Loans were
              ---------
     originated to the extent CFC is required to be licensed by applicable law
     in connection with the origination and servicing of the Loans.

          SECTION 3.2. Representations and Warranties of CFSC.  CFSC makes the
                       --------------------------------------
following representations and warranties, on which CFC relies in selling,
assigning, transferring and conveying the Initial and Additional Loans and the
Initial Other Conveyed Property to CFSC hereunder.  Such representations are
made as of the execution and delivery of this Agreement, but shall survive the
sale, transfer and assignment of the Initial and Additional Loans and the
Initial Other Conveyed Property hereunder and the sale, transfer and assignment
thereof by CFSC to the Trustee under the Pooling and Servicing Agreement.

          (a) Organization and Good Standing.  CFSC has been duly organized and
              ------------------------------
     is validly existing and in good standing as a corporation under the laws of
     the State of Minnesota, with the power and authority to own its properties
     and to conduct its business as such properties are currently owned and such
     business is currently conducted, and had at all relevant times, and has,
     full power, authority and legal right to acquire and own the Initial and
     Additional Loans and the Initial Other Conveyed Property and to transfer
     the Initial and Additional Loans and the Initial Other Conveyed Property to
     the Trust pursuant to the Sale and Servicing Agreement.

          (b) Due Qualification.  CFSC is duly qualified to do business as a
              -----------------
     foreign corporation in good standing, and has obtained all necessary
     licenses and approvals in all jurisdictions where the failure to do so
     would materially and adversely affect (i) CFSC's ability to acquire the
     Initial and Additional Loans or the Initial Other Conveyed Property, (ii)
     the validity or enforceability of the Initial and Additional Loans and the
     Initial Other Conveyed Property or (iii) CFSC's ability to perform its
     obligations hereunder and under the Related Documents.

          (c) Power and Authority.  CFSC has the power, authority and legal
              -------------------
     right to execute and deliver this Agreement and its Related Documents and
     to carry out the terms hereof and thereof and to acquire the Initial and
     Additional Loans and the Initial Other Conveyed Property hereunder; and the
     execution, delivery and performance of this Agreement and its Related
     Documents and all of the documents required pursuant hereto or thereto have
     been duly authorized by CFSC by all necessary action.

          (d) No Consent Required.  CFSC is not required to obtain the consent
              -------------------
     of any other Person, or any consent, license, approval or authorization or
     registration or declaration with, any governmental authority, bureau or
     agency in connection with the execution, delivery or performance of this
     Agreement and the Related Documents, except for such as have been obtained,
     effected or made.

          (e) Binding Obligation.  This Agreement and each of its Related
              ------------------
     Documents constitutes a legal, valid and binding obligation of CFSC,
     enforceable against CFSC in

                                       7
<PAGE>

     accordance with its terms, subject, as to enforceability, to applicable
     bankruptcy, insolvency, reorganization, conservatorship, receivership,
     liquidation and other similar laws and to general equitable principles.

          (f) No Violation.  The execution, delivery and performance by CFSC of
              ------------
     this Agreement, the consummation of the transactions contemplated by this
     Agreement and the Related Documents and the fulfillment of the terms of
     this Agreement and the Related Documents do not and will not conflict with,
     result in any breach of any of the terms and provisions of or constitute
     (with or without notice or lapse of time) a default under the articles of
     incorporation or bylaws of CFSC, or conflict with or breach any of the
     terms or provisions of, or constitute (with or without notice or lapse of
     time) a default under, any indenture, agreement, mortgage, deed of trust or
     other instrument to which CFSC is a party or by which CFSC is bound or to
     which any of its properties are subject, or result in the creation or
     imposition of any Lien upon any of its properties pursuant to the terms of
     any such indenture, agreement, mortgage, deed of trust or other instrument
     (other than the Pooling and Servicing Agreement), or violate any law,
     order, rule or regulation, applicable to CFSC or its properties, of any
     federal or state regulatory body or any court, administrative agency, or
     other governmental instrumentality having jurisdiction over CFSC or any of
     its properties.

          (g) No Proceedings.  There are no proceedings or investigations
              --------------
     pending, or, to the knowledge of CFSC, threatened against CFSC, before any
     court, regulatory body, administrative agency, or other tribunal or
     governmental instrumentality having jurisdiction over CFSC or its
     properties: (i) asserting the invalidity of this Agreement or any of the
     Related Documents, (ii) seeking to prevent the consummation of any of the
     transactions contemplated by this Agreement or any of the Related
     Documents, (iii) seeking any determination or ruling that might materially
     and adversely affect the performance by CFSC of its obligations under, or
     the validity or enforceability of, this Agreement or any of the Related
     Documents or (iv) that may adversely affect the federal or state income tax
     attributes of, or seeking to impose any excise, franchise, transfer or
     similar tax upon, the transfer and acquisition of the Initial and
     Additional Loans and the Initial Other Conveyed Property hereunder or the
     transfer of the Initial and Additional Loans and the Initial Other Conveyed
     Property to the Trust pursuant to the Pooling and Servicing Agreement.

In the event of any breach of a representation and warranty made by CFSC
hereunder, CFC covenants and agrees that it will not take any action to pursue
any remedy that it may have hereunder, in law, in equity or otherwise, until a
year and a day have passed since the later of (i) the date on which all pass-
through certificates or other similar securities issued by the Trust, or a trust
or similar vehicle formed by CFSC, have been paid in full, or (ii) all
Certificates or other similar securities issued by the Trust, or a trust or
similar vehicle formed by CFSC, have been paid in full. CFC and CFSC agree that
damages will not be an adequate remedy for such breach and that this covenant
may be specifically enforced by CFSC or by the Trustee on behalf of the Trust.

                                   ARTICLE IV
                                COVENANTS OF CFC

                                       8
<PAGE>

          SECTION 4.1. Transfer of Loans.  On or prior to the Closing Date, or
                       -----------------
the Subsequent Transfer Date in the case of Subsequent Loans, CFC shall deliver
the Loan Files to CFSC.  CFC has filed a form UCC-1 financing statement
regarding the sale of the Loans to CFSC, and shall file continuation statements
in respect of such UCC-1 financing statement as if such financing statement were
necessary to perfect such sale. CFC shall take any other actions necessary to
maintain the perfection of the sale of the Loans to CFSC.

          SECTION 4.2. Costs and Expenses.  CFC shall pay all reasonable costs
                       ------------------
and disbursements in connection with the performance of its obligations
hereunder and under each Subsequent Transfer Agreement and its Related
Documents.

          SECTION 4.3. Indemnification.
                       ---------------

          (a)  CFC will defend and indemnify CFSC against any and all costs,
     expenses, losses, damages, claims and liabilities, including reasonable
     fees and expenses of counsel and expenses of litigation arising out of or
     resulting from the use or ownership of any real estate related to a Loan by
     CFC or the Servicer or any Affiliate of either.  Notwithstanding any other
     provision of this Agreement, the obligation of CFC under this Section shall
     not terminate upon a Service Transfer pursuant to Article VII of the
     Pooling and Servicing Agreement, except that the obligation of CFC under
     this Section 4.3 shall not relate to the actions of any subsequent Servicer
     after a Service Transfer.

          (b)  No obligation or liability to any Obligor under any of the Loans
     is intended to be assumed by CFSC under or as a result of this Agreement
     and the transactions contemplated hereby and, to the maximum extent
     permitted and valid under mandatory provisions of law, CFSC expressly
     disclaims such assumption.

          (c)  CFC agrees to pay, and to indemnify, defend and hold harmless
     CFSC from, any taxes which may at any time be asserted with respect to, and
     as of the date of, the transfer of the Loans to CFSC, including, without
     limitation, any sales, gross receipts, general corporation, personal
     property, privilege or license taxes and costs, expenses and reasonable
     counsel fees in defending against the same, whether arising by reason of
     the acts to be performed by CFC under this Agreement or imposed against
     CFSC.

          (d)  Indemnification under this Section 4.3 shall include, without
     limitation, reasonable fees and expenses of counsel and expenses of
     litigation. If the Originator has made any indemnity payments to CFSC
     pursuant to this Section 4.3 and CFSC thereafter collects any of such
     amounts from others, CFSC will repay such amounts collected to CFC, without
     interest.

                                   ARTICLE V
                                  REPURCHASES

          SECTION 5.1. Repurchase of Loans Upon Breach of Warranty.
                       -------------------------------------------

          (a)  Upon the occurrence of a Repurchase Event, CFC shall, unless such
     breach shall have been cured in all material respects, repurchase such Loan
     from the Trust pursuant to Section 3.06 of the Pooling and Servicing
     Agreement, subject to the

                                       9
<PAGE>

     limitation of Section 3.07 of the Pooling and Servicing Agreement. It is
     understood and agreed that, the obligation of CFC to repurchase any Loan as
     to which a breach has occurred and is continuing shall, if such obligation
     is fulfilled, constitute the sole remedy against CFC for such breach
     available to CFSC, the Certificateholders or the Trustee on behalf of
     Certificateholders. The provisions of this Section 5.1 are intended to
     grant the Trustee a direct right against CFC to demand performance
     hereunder, and in connection therewith, CFC waives any requirement of prior
     demand against CFSC with respect to such repurchase obligation. Any such
     purchase shall take place in the manner specified in Section 3.06 of the
     Pooling and Servicing Agreement. Notwithstanding any other provision of
     this Agreement, any Subsequent Transfer Agreement or the Pooling and
     Servicing Agreement or any Subsequent Transfer Agreement to the contrary,
     the obligation of CFC under this Section shall not terminate upon a
     termination of CFC as Servicer under the Pooling and Servicing Agreement
     and shall be performed in accordance with the terms hereof notwithstanding
     the failure of the Servicer or CFSC to perform any of their respective
     obligations with respect to such Loan under the Pooling and Servicing
     Agreement.

          (b)  In lieu of repurchasing a Loan when required by Section 5.1(a) of
     this Agreement and Section 3.06(a) of the Pooling and Servicing Agreement,
     CFC may deliver an Eligible Substitute Loan pursuant to the provisions of
     Section 3.06(b) of the Pooling and Servicing Agreement.

          (c)  In addition to the foregoing and notwithstanding whether the
     related Loan shall have been purchased by CFC, CFC shall indemnify the
     Trustee, the Trust and the Certificateholders against all costs, expenses,
     losses, damages, claims and liabilities, including reasonable fees and
     expenses of counsel, which may be asserted against or incurred by any of
     them as a result of third party claims arising out of the events or facts
     giving rise to such Repurchase Events.

          SECTION 5.2. Reassignment of Purchased Loans.  Upon deposit of the
                       -------------------------------
Repurchase Price of any Loan repurchased or replaced by CFC under Section 5.1,
CFSC shall cause the Trustee to take such steps as may be reasonably requested
by CFC in order to assign to CFC all of CFSC's and the Trust's right, title and
interest in and to such Loan and all security and documents and all Other
Conveyed Property conveyed to CFSC and the Trust directly relating thereto,
without recourse, representation or warranty, except as to the absence of liens,
charges or encumbrances created by or arising as a result of actions of CFSC or
the Trustee. Such assignment shall be a sale and assignment outright, and not
for security. If, following the reassignment of a Loan, in any enforcement suit
or legal proceeding, it is held that CFC may not enforce any such Loan on the
ground that it shall not be a real party in interest or a holder entitled to
enforce the Loan, CFSC and the Trustee shall, at the expense of CFC, take such
steps as CFC deems reasonably necessary to enforce the Loan, including bringing
suit in CFSC's or the Trustee's name.

          SECTION 5.3. Waivers.  No failure or delay on the part of CFSC, or the
                       -------
Trustee as assignee of CFSC, in exercising any power, right or remedy under this
Agreement or under any Subsequent Transfer Agreement shall operate as a waiver
thereof, nor shall any single

                                       10
<PAGE>

or partial exercise of any such power, right or remedy preclude any other or
future exercise thereof or the exercise of any other power, right or remedy.

                                   ARTICLE VI
                                 MISCELLANEOUS

          SECTION 6.1. Liability of CFC.  CFC shall be liable in accordance
                       ----------------
herewith only to the extent of the obligations in this Agreement or in any
Subsequent Transfer Agreement specifically undertaken by CFC and the
representations and warranties of CFC.

          SECTION 6.2. Merger or Consolidation of CFC or CFSC.  Any corporation
                       --------------------------------------
or other entity (i) into which CFC or CFSC may be merged or consolidated, (ii)
resulting from any merger or consolidation to which CFC or CFSC is a party or
(iii) succeeding to the business of CFC or CFSC, in the case of CFSC, which
corporation has articles of incorporation containing provisions relating to
limitations on business and other matters substantively identical to those
contained in CFSC's articles of incorporation, provided that in any of the
foregoing cases such corporation shall execute an agreement of assumption to
perform every obligation of CFC or CFSC, as the case may be, under this
Agreement and each Subsequent Transfer Agreement and, whether or not such
assumption agreement is executed, shall be the successor to CFC or CFSC, as the
case may be, hereunder and under each such Subsequent Transfer Agreement
(without relieving CFC or CFSC of its responsibilities hereunder, if it survives
such merger or consolidation) without the execution or filing of any document or
any further act by any of the parties to this Agreement or each Subsequent
Transfer Agreement.  CFC or CFSC shall promptly inform the other party and the
Trustee of such merger, consolidation or purchase and assumption.
Notwithstanding the foregoing, as a condition to the consummation of the
transactions referred to in clauses (i), (ii) and (iii) above, (x) immediately
after giving effect to such transaction, no representation or warranty made
pursuant to Sections 3.1 and 3.2 and the Pooling and Servicing Agreement, or
similar representation or warranty made in any Subsequent Transfer Agreement,
shall have been breached (for purposes hereof, such representations and
warranties shall speak as of the date of the consummation of such transaction),
(y) CFC or CFSC, as applicable, shall have delivered written notice of such
consolidation, merger or purchase and assumption to the Rating Agencies prior to
the consummation of such transaction and shall have delivered to the Trustee an
Officer's Certificate and an Opinion of Counsel each stating that such
consolidation, merger or succession and such agreement of assumption comply with
this Section 6.3 and that all conditions precedent, if any, provided for in this
Agreement, or in each Subsequent Transfer Agreement, relating to such
transaction have been complied with, and (z) CFC or CFSC, as applicable, shall
have delivered to the Trustee an Opinion of Counsel, stating that, in the
opinion of such counsel, either (A) all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary to preserve and protect the interest of the Trustee in the Trust
Property and reciting the details of the filings or (B) no such action shall be
necessary to preserve and protect such interest.

          SECTION 6.3. Limitation on Liability of CFC and Others.  CFC shall not
                       -----------------------------------------
be under any obligation to appear in, prosecute or defend any legal action that
is not incidental to its obligations under this Agreement, any Subsequent
Transfer Agreement or its Related Documents and that in its opinion may involve
it in any expense or liability.

                                       11
<PAGE>

          SECTION 6.4. Amendment.
                       ---------

          (a)  This Agreement and any Subsequent Transfer Agreement may be
     amended by CFC and CFSC and without the consent of the Trustee or any of
     the Certificateholders (A) to cure any ambiguity or (B) to correct any
     provisions in this Agreement or any such Subsequent Transfer Agreement;
     provided, however, that such action shall not, as evidenced by an Opinion
     --------  -------
     of Counsel delivered to the Trustee, adversely affect in any material
     respect the interests of any Certificateholder.

          (b)  This Agreement may also be amended from time to time by CFC and
     CFSC, with the prior written consent of the Trustee and the Holders of
     Certificates representing, in the aggregate, 66 2/3% or more of the
     Aggregate Certificate Principal Balance, for the purpose of adding any
     provisions to or changing in any manner or eliminating any of the
     provisions of this Agreement, or of modifying in any manner the rights of
     the Certificateholders; provided, however, that no such amendment shall (i)
     increase or reduce in any manner the amount of, or accelerate or delay the
     timing of, collections of payments on the Loans or, distributions that are
     required to be made on any Certificate or (ii) reduce the aforesaid
     percentage required to consent to any such amendment or any waiver
     hereunder, without the consent of the Holders of all Certificates then
     outstanding.

          (c)  This Agreement shall not be amended under this Section without
     the consent of 100% of the Certificateholders and the Class C
     Certificateholder if such amendment would result in the disqualification of
     the Trust as a REMIC under the Code.

          (d)  Concurrently with the solicitation of any consent pursuant to
     this Section 6.4, CFSC shall furnish written notification to the Rating
     Agencies. Promptly after the execution of any amendment or consent pursuant
     to this Section 6.4, CFSC shall furnish written notification of the
     substance of such amendment to the Rating Agencies and to each
     Certificateholder and the Class C Certificateholder.

          (e)  It shall not be necessary for the consent of Certificateholders
     pursuant to this Section 6.4 to approve the particular form of any proposed
     amendment or consent, but it shall be sufficient if such consent shall
     approve the substance thereof. The manner of obtaining such consents and of
     evidencing the authorization of the execution thereof by Certificateholders
     shall be subject to such reasonable requirements as the Trustee may
     prescribe, including the establishment of record dates. The consent of any
     Holder of a Certificate given pursuant to this Section or pursuant to any
     other provision of this Agreement shall be conclusive and binding on such
     Holder and on all future Holders of such Certificate and of any Certificate
     issued upon the transfer thereof or in exchange thereof or in lieu thereof
     whether or not notation of such consent is made upon the Certificate.

          SECTION 6.5. Notices.  All demands, notices and communications to CFC
                       -------
or CFSC hereunder shall be in writing, personally delivered, or sent by
telecopier (subsequently confirmed in writing), reputable overnight courier or
mailed by certified mail, return receipt requested, and shall be deemed to have
been given upon receipt (a) in the case of CFC, to

                                       12
<PAGE>

Conseco Finance Corp., 1100 Landmark Towers, 345 St. Peter Street, Saint Paul,
Minnesota 55102-1639, Attention: Chief Financial Officer, or such other address
as shall be designated by CFC in a written notice delivered to the other party
or to the Trustee or (b) in case of CFSC, to Conseco Finance Securitizations
Corp., 300 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-
1639, Attention: Chief Financial Officer.

          SECTION 6.6.  Merger and Integration.  Except as specifically stated
                        ----------------------
otherwise herein, this Agreement and the Related Documents set 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 and the
Related Documents.  This Agreement may not be modified, amended, waived or
supplemented except as provided herein.

          SECTION 6.7.  Severability of Provisions.  If any one or more of the
                        --------------------------
covenants, provisions or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, provisions or terms shall be
deemed severable from the remaining covenants, provisions or terms of this
Agreement and shall in no way affect the validity or enforceability of the other
provisions of this Agreement.

          SECTION 6.8.  Intention of the Parties.  The execution and delivery of
                        ------------------------
this Agreement and of each Subsequent Transfer Agreement shall constitute an
acknowledgment by CFC and CFSC that they intend that each assignment and
transfer herein and therein contemplated constitute a sale and assignment
outright, and not for security, of the Initial and Additional Loans and the
Initial Other Conveyed Property and the Subsequent Loans and Subsequent Other
Conveyed Property, as the case may be, conveying good title thereto free and
clear of any liens, from CFC to CFSC, and that the Initial and Additional Loans
and the Initial Other Conveyed Property and the Subsequent Loans and Subsequent
Other Conveyed Property shall not be a part of CFC's estate in the event of the
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding,
or other proceeding under any federal or state bankruptcy or similar law, or the
occurrence of another similar event, of, or with respect to, CFC.  In the event
that such conveyance is determined to be made as security for a loan made by
CFSC, the Trust or the Certificateholders to CFC, the parties intend that CFC
shall have granted to CFSC a security interest in all of CFC's right, title and
interest in and to the Initial and Additional Loans and the Initial Other
Conveyed Property and the Subsequent Loans and Subsequent Other Conveyed
Property, as the case may be, conveyed pursuant to Section 2.1 hereof or
pursuant to any Subsequent Transfer Agreement, and that this Agreement and each
Subsequent Transfer Agreement shall constitute a security agreement under
applicable law.

          SECTION 6.9.  Governing Law.  This Agreement shall be construed in
                        -------------
accordance with, the laws of the State of Minnesota without regard to the
principles of conflicts of laws thereof, and the obligations, rights and
remedies of the parties under this Agreement shall be determined in accordance
with such laws.

          SECTION 6.10. Counterparts.  For the purpose of facilitating the
                        ------------
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

                                       13
<PAGE>

          SECTION 6.11. Conveyance of the Initial and Additional Loans and the
                        ------------------------------------------------------
Initial Other Conveyed Property to the Trust.  CFC acknowledges that CFSC
--------------------------------------------
intends, pursuant to the Pooling and Servicing Agreement, to convey the Initial
and Additional Loans and the Initial Other Conveyed Property, together with its
rights under this Agreement, to the Trustee on the date hereof. CFC acknowledges
and consents to such conveyance and waives any further notice thereof and
covenants and agrees that the representations and warranties of CFC contained in
this Agreement and the rights of CFSC hereunder are intended to benefit the
Trustee, the Trust, and the Certificateholders.  In furtherance of the
foregoing, CFC covenants and agrees to perform its duties and obligations
hereunder, in accordance with the terms hereof for the benefit of the Trustee,
the Trust, and the Certificateholders and that, notwithstanding anything to the
contrary in this Agreement, CFC shall be directly liable to the Trustee and the
Trust (notwithstanding any failure by the Servicer or CFSC to perform its duties
and obligations hereunder or under the Pooling and Servicing Agreement) and that
the Trustee may enforce the duties and obligations of CFC under this Agreement
against CFC for the benefit of the Trust and the Certificateholders.

          SECTION 6.12. Nonpetition Covenant.  Neither CFSC nor CFC shall
                        --------------------
petition or otherwise invoke the process of any court or government authority
for the purpose of commencing or sustaining a case against the Trust (or, in the
case of CFC, against CFSC or, in the case of CFSC, against CFC) 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 Trust (or CFSC) or any substantial part of its property, or ordering the
winding up or liquidation of the affairs of the Trust (or CFSC).

                                       14
<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Transfer Agreement to
be duly executed by their respective officers as of the 31/st/ day of January,
2001.

                                        CONSECO FINANCE SECURITIZATIONS CORP.,
                                          as Purchaser

                                        By:____________________________________
                                           Phyllis A. Knight
                                           Senior Vice President and Treasurer

                                        CONSECO FINANCE CORP., as Seller

                                        By:____________________________________
                                           Phyllis A. Knight
                                           Senior Vice President and Treasurer

                                       15
<PAGE>

                                   SCHEDULE A

                    SCHEDULE OF INITIAL AND ADDITIONAL LOANS

                                      A-1
<PAGE>

                                                                       EXHIBIT A

                                    FORM OF

                         SUBSEQUENT TRANSFER AGREEMENT

                                    between

                     CONSECO FINANCE SECURITIZATIONS CORP.
                                   Purchaser

                                      and

                             CONSECO FINANCE CORP.
                                    Seller

                                  dated as of

                                ________, 2001
<PAGE>

          SUBSEQUENT TRANSFER AGREEMENT, dated as of ________, 2001, between
Conseco Finance Securitizations Corp., a Minnesota corporation, as purchaser
("CFSC"), and Conseco Finance Corp., a Delaware corporation, as seller ("CFC"),
pursuant to the Transfer Agreement, dated as of January 1, 2001, between CFSC
and CFC.

                              W I T N E S S E T H:
                              - - - - - - - - - -

          WHEREAS, CFC and CFSC are parties to a Transfer Agreement, dated as of
January 1, 2001 (as amended or supplemented, the "Transfer Agreement");

          WHEREAS, pursuant to the Transfer Agreement and this Agreement, CFSC
has agreed to purchase from CFC and CFC is transferring to CFSC the Subsequent
Loans and the Subsequent Other Conveyed Property.

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter contained, and for other good and valuable consideration,
the receipt of which is acknowledged, CFSC and CFC, intending to be legally
bound, hereby agree as follows:

          1.   Defined Terms.  Capitalized terms used but not otherwise defined
               -------------
herein shall have the respective meanings assigned to such terms in the Transfer
Agreement.

          "Agreement" means this Subsequent Transfer Agreement and all
           ---------
amendments hereof and all supplements hereto.

          "Cut-off Date" shall mean, with respect to the Subsequent Loans
           ------------
conveyed hereby, _________, 2001.

          "Schedule of Subsequent Loans" means the schedule of all home equity
           ----------------------------
loans sold and transferred pursuant to this Agreement attached hereto as
Schedule A, which Schedule of Subsequent Loans shall supplement the Schedule of
Initial and Additional Loans attached to the Transfer Agreement.

          "Subsequent Loans" means, for purposes of this Agreement, the closed-
           ----------------
end home equity loans identified on the Schedule of Subsequent Loans attached
hereto as Schedule A, including without limitation all related mortgages, deeds
of trust and security deeds and any and all rights to receive payments due
pursuant thereto after the Cut-off Date.

          "Subsequent Other Conveyed Property" means, for purposes of this
           ----------------------------------
Agreement, (i) all rights under any hazard, flood or other individual insurance
policy on the real estate securing each Subsequent Loan for the benefit of the
creditor of such Loan, (ii) all rights  CFC may have against the originating
lender with respect to each Subsequent Loan originated by a lender other than
CFC, (iii) all rights under the Errors and Omissions Protection Policy and the
Fidelity Bond as such policy and bond relate to the Subsequent Loans, (iv) all
rights under any title insurance policies, if applicable, on any of the
properties securing Subsequent Loans, and (v) proceeds and products of the
foregoing.

          "Subsequent Transfer Date" means the date of this Agreement.
           ------------------------

                                    Ex. A-1
<PAGE>

          2.   Conveyance of the Subsequent Loans and the Subsequent Other
               -----------------------------------------------------------
Conveyed Property.  Subject to the terms and conditions of this Agreement and
-----------------
the Transfer Agreement, CFC hereby sells, transfers, assigns, and otherwise
conveys to CFSC without recourse (but without limitation of its obligations in
this Agreement and the Transfer Agreement), and CFSC hereby purchases, all
right, title and interest of CFC in and to the Subsequent Loans and the
Subsequent Other Conveyed Property.  It is the intention of CFC and CFSC that
the transfer and assignment contemplated by this Agreement shall constitute a
sale of the Subsequent Loans and the Subsequent Other Conveyed Property from CFC
to CFSC, conveying good title thereto free and clear of any Liens, and the
Subsequent Loans and the Subsequent Other Conveyed Property shall not be part of
CFC's estate in the event of the filing of a bankruptcy petition by or against
CFC under any bankruptcy or similar law.

          3.   Purchase Price.  Simultaneously with the conveyance of the
               --------------
Subsequent Loans and the Subsequent Other Conveyed Property to CFSC, CFSC has
paid or caused to be paid to or upon the order of CFC, by wire transfer of
immediately available funds (representing certain proceeds to CFSC from the sale
of the Certificates on deposit in the Pre-Funding Account), the amount of funds
as specified below:

          4.   Principal Balance of Subsequent Loans:        $_______
               -------------------------------------

               (i)  Proceeds to CFC:                         $_______

          5.   Representations and Warranties of CFC.  CFC makes the following
               -------------------------------------
representations and warranties, on which CFSC relies in purchasing the
Subsequent Loans and the Subsequent Other Conveyed Property and in transferring
the Subsequent Loans and the Subsequent Other Conveyed Property to the Trustee
under the Subsequent Transfer Instrument. Such representations are made as of
the execution and delivery of this Agreement, but shall survive the sale,
transfer and assignment of the Subsequent Loans and the Subsequent Other
Conveyed Property hereunder, and the sale, transfer and assignment thereof by
CFSC to the Trustee under the Subsequent Transfer Instrument.  CFC and CFSC
agree that CFSC will assign to the Trustee all of CFSC's rights under the
Agreement, and that the Trustee will thereafter be entitled to enforce this
Agreement against CFC in the Trustee's own name.

          (a)  Schedule of Representations.  The representations and warranties
               ---------------------------
     set forth in Sections 3.02, 3.03 and 3.04 of the Pooling and Servicing
     Agreement are true and correct.

          (b)  Organization and Good Standing.  CFC has been duly organized and
               ------------------------------
     is validly existing as a corporation in good standing under the laws of the
     State of Delaware, with power and authority to own its properties and to
     conduct its business as such properties are currently owned and such
     business is currently conducted, and had at all relevant times, and now
     has, power, authority and legal right to acquire, own and sell the
     Subsequent Loans and the Subsequent Other Conveyed Property transferred to
     CFSC.

          (c)  Due Qualification.  CFC is duly qualified to do business as a
               -----------------
     foreign corporation in good standing, and has obtained all necessary
     licenses and approvals, in all

                                    Ex. A-2
<PAGE>

     jurisdictions in which the ownership or lease of its property or the
     conduct of its business requires such qualification.

          (d)  Power and Authority.  CFC has the power and authority to execute
               -------------------
     and deliver this Agreement and to carry out its terms; CFC has full power
     and authority to sell and assign the Subsequent Loans and the Subsequent
     Other Conveyed Property to be sold and assigned to and deposited with CFSC
     hereunder and has duly authorized such sale and assignment to CFSC by all
     necessary corporate action; and the execution, delivery and performance of
     this Agreement has been duly authorized by CFC by all necessary corporate
     action.

          (e)  Valid Sale; Binding Obligations.  This Agreement has been duly
               -------------------------------
     executed and delivered, shall effect a valid sale, transfer and assignment
     of the Subsequent Loans and the Subsequent Other Conveyed Property,
     enforceable against CFC and creditors of and purchasers from CFC; and this
     Agreement constitutes the legal, valid and binding obligation of CFC
     enforceable in accordance with its terms, except as enforceability may be
     limited by bankruptcy, insolvency, reorganization or other similar laws
     affecting the enforcement of creditors' rights generally and by equitable
     limitations on the availability of specific remedies, regardless of whether
     such enforceability is considered in a proceeding in equity or at law.

          (f)  No Violation.  The consummation of the transactions contemplated
               ------------
     by this Agreement and the fulfillment of the terms of this Agreement shall
     not conflict with, result in any breach of any of the terms and provisions
     of or constitute (with or without notice, lapse of time or both) a default
     under, the certificate of incorporation or bylaws of CFC, or any indenture,
     agreement, mortgage, deed of trust or other instrument to which CFC is a
     party or by which it is bound, or result in the creation or imposition of
     any lien upon any of its properties pursuant to the terms of any such
     indenture, agreement, mortgage, deed of trust or other instrument, other
     than this Agreement, or violate any law, order, rule or regulation
     applicable to CFC of any court or of any federal or state regulatory body,
     administrative agency or other governmental instrumentality having
     jurisdiction over CFC or any of its properties.

          (g)  No Proceedings.  There are no proceedings or investigations
               --------------
     pending or, to CFC's knowledge, threatened against CFC, before any court,
     regulatory body, administrative agency or other tribunal or governmental
     instrumentality having jurisdiction over CFC or its properties (i)
     asserting the invalidity of this Agreement, (ii) seeking to prevent or the
     consummation of any of the transactions contemplated by this Agreement,
     (iii) seeking any determination or ruling that might materially and
     adversely affect the performance by CFC of its obligations under, or the
     validity or enforceability of, this Agreement, or (iv) seeking to affect
     adversely the federal income tax or other federal, state or local tax
     attributes of, or seeking to impose any excise, franchise, transfer or
     similar tax upon, the transfer and acquisition of the Subsequent Loans and
     the Subsequent Other Conveyed Property hereunder.

          (h)  Insolvency.  As of the Cut-off Date and the Subsequent Transfer
               ----------
     Date, neither CFC nor CFSC is insolvent nor will either of them have been
     made insolvent after

                                    Ex. A-3
<PAGE>

     giving effect to the conveyance set forth in Section 2 of this Agreement,
     nor are any of them aware of any pending insolvency.

          (i)  Chief Executive Office.  The chief executive office of CFC is
               ----------------------
     located at 1100 Landmark Towers, 345 St. Peter Street, Saint Paul,
     Minnesota 55102-1639.

          (j)  Licensing. CFC is duly licensed in each state in which Loans were
               ---------
     originated to the extent CFC is required to be licensed by applicable law
     in connection with the origination and servicing of the Loans.

          6.   Representations and Warranties of CFSC.  CFSC makes the following
               --------------------------------------
representations and warranties, on which CFC relies in selling, assigning,
transferring and conveying the Subsequent Loans and the Subsequent Other
Conveyed Property to CFSC hereunder.  Such representations are made as of the
execution and delivery of this Agreement, but shall survive the sale, transfer
and assignment of the Subsequent Loans and the Subsequent Other Conveyed
Property hereunder and the sale, transfer and assignment thereof by CFSC to the
Trustee under the Subsequent Transfer Instrument.

          (a)  Organization and Good Standing.  CFSC has been duly organized and
               ------------------------------
     is validly existing and in good standing as a corporation under the laws of
     the State of Minnesota, with the power and authority to own its properties
     and to conduct its business as such properties are currently owned and such
     business is currently conducted, and had at all relevant times, and has,
     full power, authority and legal right to acquire and own the Subsequent
     Loans and the Subsequent Other Conveyed Property, and to transfer the
     Subsequent Loans and the Subsequent Other Conveyed Property to the Trustee
     pursuant to the Subsequent Transfer Instrument.

          (b)  Due Qualification.  CFSC is duly qualified to do business as a
               -----------------
     foreign corporation in good standing, and has obtained all necessary
     licenses and approvals in all jurisdictions where the failure to do so
     would materially and adversely affect CFSC's ability to acquire the
     Subsequent Loans or the Subsequent Other Conveyed Property or the validity
     or enforceability of the Subsequent Loans and the Subsequent Other Conveyed
     Property or to perform CFSC's obligations hereunder and under the
     Subsequent Transfer Instrument.

          (c)  Power and Authority.  CFSC has the power, authority and legal
               -------------------
     right to execute and deliver this Agreement and to carry out the terms
     hereof and to acquire the Subsequent Loans and the Subsequent Other
     Conveyed Property hereunder; and the execution, delivery and performance of
     this Agreement and all of the documents required pursuant hereto have been
     duly authorized by CFSC by all necessary action.

          (d)  No Consent Required.  CFSC is not required to obtain the consent
               -------------------
     of any other Person, or any consent, license, approval or authorization or
     registration or declaration with, any governmental authority, bureau or
     agency in connection with the execution, delivery or performance of this
     Agreement, except for such as have been obtained, effected or made.

                                    Ex. A-4
<PAGE>

          (e)  Binding Obligation. This Agreement constitutes a legal, valid and
               ------------------
     binding obligation of CFSC, enforceable against CFSC in accordance with its
     terms, subject, as to enforceability, to applicable bankruptcy, insolvency,
     reorganization, conservatorship, receivership, liquidation and other
     similar laws and to general equitable principles.

          (f)  No Violation.  The execution, delivery and performance by CFSC of
               ------------
     this Agreement, the consummation of the transactions contemplated by this
     Agreement and the Subsequent Transfer Instrument and the fulfillment of the
     terms of this Agreement and the Subsequent Transfer Instrument do not and
     will not conflict with, result in any breach of any of the terms and
     provisions of, or constitute (with or without notice or lapse of time) a
     default under, the articles of incorporation or bylaws of CFSC, or conflict
     with or breach any of the terms or provisions of, or constitute (with or
     without notice or lapse of time) a default under, any indenture, agreement,
     mortgage, deed of trust or other instrument to which CFSC is a party or by
     which CFSC is bound or to which any of its properties are subject, or
     result in the creation or imposition of any lien upon any of its properties
     pursuant to the terms of any such indenture, agreement, mortgage, deed of
     trust or other instrument (other than the Pooling and Servicing Agreement
     and the Subsequent Transfer Instrument), or violate any law, order, rule or
     regulation, applicable to CFSC or its properties, of any federal or state
     regulatory body, any court, administrative agency, or other governmental
     instrumentality having jurisdiction over CFSC or any of its properties.

          (g)  No Proceedings.  There are no proceedings or investigations
               --------------
     pending, or, to the knowledge of CFSC, threatened against CFSC, before any
     court, regulatory body, administrative agency, or other tribunal or
     governmental instrumentality having jurisdiction over CFSC or its
     properties: (i) asserting the invalidity of this Agreement or the
     Subsequent Transfer Instrument, (ii) seeking to prevent the consummation of
     any of the transactions contemplated by this Agreement or the Subsequent
     Transfer Instrument, (iii) seeking any determination or ruling that might
     materially and adversely affect the performance by CFSC of its obligations
     under, or the validity or enforceability of, this Agreement or the
     Subsequent Transfer Instrument, or (iv) that may adversely affect the
     federal or state income tax attributes of, or seeking to impose any excise,
     franchise, transfer or similar tax upon, the transfer and acquisition of
     the Subsequent Loans and the Subsequent Other Conveyed Property hereunder
     or the transfer of the Subsequent Loans and the Subsequent Other Conveyed
     Property to the Trustee pursuant to the Subsequent Transfer Instrument.

In the event of any breach of a representation and warranty made by CFSC
hereunder, CFC covenants and agrees that it will not take any action to pursue
any remedy that it may have hereunder, in law, in equity or otherwise, until a
year and a day have passed since the date on which all pass-through certificates
or other similar securities issued by the Trust, or a trust or similar vehicle
formed by CFSC, have been paid in full. CFC and CFSC agree that damages will not
be an adequate remedy for such breach and that this covenant may be specifically
enforced by CFSC or by the Trustee on behalf of the Trust.

          7.   Conditions Precedent.  The obligation of CFSC to acquire the
               --------------------
Subsequent Loans and the Subsequent Other Conveyed Property hereunder is subject
to the satisfaction, on

                                    Ex. A-5
<PAGE>

or prior to the Subsequent Transfer Date, of the following conditions precedent,
and CFC hereby confirms that such conditions precedent are satisfied:

          (a)  Representations and Warranties.  Each of the representations and
               ------------------------------
     warranties made by the CFC in Section 4 of this Agreement and in Section
     3.1 of the Transfer Agreement shall be true and correct as of the
     Subsequent Transfer Date.

          (b)  Transfer Agreement Conditions.  Each of the conditions set forth
               -----------------------------
     in Section 2.3(b) of the Transfer Agreement applicable to the conveyance of
     Subsequent Loans and the Subsequent Other Conveyed Property shall have been
     satisfied.

          (c)  Additional Information.  CFC has delivered to CFSC such
               ----------------------
     information as was reasonably requested by CFSC to satisfy itself as to (i)
     the accuracy of the representations and warranties set forth in Section 4
     of this Agreement and in Section 3.1 of the Transfer Agreement and (ii) the
     satisfaction of the conditions set forth in this Section 6.

          (d)  Ratification of Transfer Agreement.  As supplemented by this
               ----------------------------------
     Agreement, the Transfer Agreement is in all respects ratified and confirmed
     and the Transfer Agreement as so supplemented by this Agreement shall be
     read, taken and construed as one and the same instrument.

          8.   Governing Law.  This Agreement shall be construed in accordance
               -------------
with the laws of the State of Minnesota without regard to the principles of
conflicts of laws thereof, and the obligations, rights and remedies of the
parties under this Agreement shall be determined in accordance with such laws.

          (a)  Counterparts.  For the purposes of facilitating the execution of
               ------------
     this Agreement and for other purposes, this Agreement may be executed
     simultaneously in any number of counterparts, each of which counterparts
     shall be deemed to be an original, and all of which counterparts shall
     constitute but one and the same instrument.

          (b)  Conveyance of the Subsequent Loans and the Subsequent Other
               -----------------------------------------------------------
     Conveyed Property to the Trust.  CFC acknowledges that CFSC intends,
     ------------------------------
     pursuant to a Subsequent Transfer Instrument, to convey the Subsequent
     Loans and the Subsequent Other Conveyed Property, together with its rights
     under this Agreement and under the Transfer Agreement, to the Trustee on
     the date hereof.  CFC acknowledges and consents to such conveyance and
     waives any further notice thereof and covenants and agrees that the
     representations and warranties of CFC contained in this Agreement and the
     rights of CFSC hereunder and thereunder are intended to benefit the
     Trustee, the Trust and the Certificateholders.  In furtherance of the
     foregoing, CFC covenants and agrees to perform its duties and obligations
     hereunder and under the Transfer Agreement, in accordance with the terms
     hereof and thereof for the benefit of the Trustee, the Trust and the
     Certificateholders and that, notwithstanding anything to the contrary in
     this Agreement or in the Transfer Agreement, CFC shall be directly liable
     to the Trustee and the Trust (notwithstanding any failure by CFSC to
     perform its duties and obligations hereunder or under the Pooling and
     Servicing Agreement) and that the Trustee may enforce the duties

                                    Ex. A-6
<PAGE>

     and obligations of CFC under this Agreement and the Transfer Agreement
     against CFC for the benefit of the Trust and the Certificateholders.

                                    Ex. A-7
<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed by their respective officers as of the ___ day of ____, 2001.

                                   CONSECO FINANCE SECURITIZATIONS CORP.,
                                      as Purchaser

                                   By_________________________________________
                                     Name:  Phyllis A. Knight
                                     Title: Senior Vice President and Treasurer

                                   CONSECO FINANCE CORP., as Seller

                                   By________________________________________
                                     Name:  Phyllis A. Knight
                                     Title: Senior Vice President and Treasurer

                                    Ex. A-8
<PAGE>

                                   SCHEDULE A

                          SCHEDULE OF SUBSEQUENT LOANS

                                    Ex. A-9Exhibit 4.3
                           GULFPORT ENERGY CORPORATION
                             1999 STOCK OPTION PLAN

        1.  Purpose.  The 1999 Stock  Option  Plan (the  "Plan") is  intended to
strengthen   Gulfport  Energy   Corporation  (the  "Company")  by  providing  to
employees, officers, directors,  consultants, and independent contractors of the
Company added  incentive for high levels of performance  and unusual  efforts to
increase the earnings of the Company.  The Plan seeks to accomplish this purpose
by enabling  specified  persons to  purchase  shares of Common  Stock,  $.50 par
value,  thereby  increasing their proprietary  interest in the Company's success
and encouraging them to remain in the employ or service of the Company.

        2.  Administration.  The Plan shall be administered by the  Compensation
Committee (the  "Committee" or  "Administrator")  of the Board of Directors (the
"Board") of the Company.  The number of  individuals  that shall  constitute the
Committee  shall be  determined  from time to time by a  majority  of all of the
members  of  the  Board,  and  unless  that  majority  of the  Board  determines
otherwise, shall be no less than two individuals; PROVIDED, however, that if the
members of the Board and the  Company's  executive  officers are subject to Rule
16b-3 under the Exchange Act, the Committee shall be comprised of either (a) the
entire Board or (b) persons who are "Non-Employee Directors" under Rule 16b-3 or
such other person as shall then be eligible to serve in such capacity under Rule
16b-3.  A  majority  of the  Committee  shall  constitute  a  quorum  (or if the
Committee is only two members, then both members shall constitute a quorum), and
subject to the  provisions  of Section 4, the acts of a majority  of the members
present at any meeting at which a quorum is present, or acts approved in writing
by all members of the Committee, shall be the acts of the Committee.

               The members of the  Committee  shall serve at the pleasure of the
Board,  which shall have the power,  at any time and from time to time to remove
members from or add members to the Committee.  Removal from the Committee may be
with or without cause. Any individual serving as a member of the Committee shall
have the right to resign from  membership in the Committee by written  notice to
the Board. The Board, and not the remaining members of the Committee, shall have
the power and authority to fill vacancies on the Committee,  however caused. The
Board shall  promptly  fill any vacancy that causes the number of members of the
Committee  to be below two or if the  Company  has a class of equity  securities
registered  pursuant to Section 12 of the Exchange  Act, any other  members that
Rule 16B-3 may require from time to time.

        3.  Shares  Available.  Subject to the  adjustments  provided in Section
5(g), the maximum number of shares of Common Stock, par value $.50 per share, of
the Company (the  "Common  Stock") in respect of which Option may be granted for
all purposes  under the Plan shall be 300,000  shares.  If, for any reason,  any
shares as to which  Options  have been  granted  cease to be subject to purchase
thereunder,  including the  expiration of such Option,  the  termination of such
Option prior to exercise,  or the  forfeiture of such Option,  such shares shall
thereafter  be available  for grants under the Plan.  Options  granted under the
Plan  may be  fulfilled  in  accordance  with the  terms  of the  Plan  with (i)
authorized and unissued  shares of the Common Stock,  (ii) issued shares of such
Common Stock held in the  Company's  treasury,  or (iii) issued shares of Common
Stock reacquired by the Company, in each situation as the Board or the Committee
may determine from time to time.

        4.  Authority of  Committee.  Subject to and not  inconsistent  with the
express  provisions of the Plan,  the Code and, if applicable,  Rule 16b-3,  the
Committee shall have plenary authority to:

<PAGE>

               a. determine the Key Employees and Eligible Non-Employees to whom
Options  shall be granted,  the time when such  Options  shall be  granted,  the
number of shares  covered by such Options,  the purchase price or exercise price
under  each such  Option,  the  period(s)  during  which such  Options  shall be
exercisable  (whether in whole or in part,  including whether such Options shall
become immediately exercisable upon the consummation of a "Change of Control" or
a "Qualifying  Public  Offering"),  the restrictions to be applicable to Options
and all other terms and provisions thereof (which need not be identical);

               b.  require,  if  determined  necessary  or  appropriate  by  the
committee in order to comply with Rule 16b-3,  as a condition to the granting of
any Option, that the Person receiving such Option agree not to sell or otherwise
dispose of such Option,  any Common Stock acquired  pursuant to such Option,  or
any other "derivative  security" (as defined by Rule 16a-1(c) under the Exchange
Act) for a period of six months  following the later of the date of the grant of
such Option or (ii) the date when the exercise  price of such Option is fixed if
such  exercise  price is not fixed at the date of grant of such  Option,  or for
such other period as the Committee may determine;

               c.  provide  an  arrangement  through  registered  broker-dealers
whereby  temporary  financing  may  be  made  available  to an  optionee  by the
broker-dealer,  under the rules and regulations of the Board of Governors of the
Federal Reserve, for the purpose of assisting the optionee in the exercise of an
Option,  such authority to include the payment by the Company of the commissions
of the broker-dealer;

               d. provide the establishment of procedures for an optionee (i) to
have  withheld  from the total  number of shares of Common  Stock to be acquired
upon the exercise of an Option that number of shares  having a Fair Market Value
which, together with such cash as shall be paid in respect of fractional shares,
shall  equal the  aggregate  exercise  price under such Option for the number of
shares then being acquired (including the shares to be so withheld), and (ii) to
exercise a portion of an Option by  delivering  that  number of shares of Common
Stock already owned by such optionee having an aggregate Fair Market Value which
shall equal the  partial  Option  exercise  price and to deliver the shares thus
acquired by such  optionee  in payment of shares to be received  pursuant to the
exercise of  additional  portions of such  Option,  the effect of which shall be
that such optionee can in sequence utilize such newly acquired shares in payment
of the exercise price of the entire Option,  together with such cash as shall be
paid in respect of fractional shares;

               e.  provide (in  accordance  with  Section 13 or  otherwise)  the
establishment of a procedure whereby a number of shares of Common Stock or other
securities  may be withheld  from the total  number of shares of Common Stock or
other  securities to be issued upon exercise of an Option to meet the obligation
of  withholding  for income,  social  security  and other  taxes  incurred by an
optionee  upon such  exercise  or  required  to be  withheld by the Company or a
Related Entity in connection with such exercise;

               f.  prescribe,  amend,  modify and  rescind rules and regulations
relating to the Plan;

               g.  make  all  determinations   permitted  or  deemed  necessary,
appropriate or advisable for the administration of the Plan,  interpret any Plan
or Option,  provision,  perform all other acts,  exercise all other powers,  and
establish  any other  procedures  determined  by the  Committee to be necessary,
appropriate,  or advisable in  administering  the Plan or for the conduct of the
Committee's business. Any act of the Committee, including interpretations of the
provisions  of the Plan or any Option and  determinations  under the Plan or any
Option shall be final, conclusive and binding on all parties;

<PAGE>

               h. delegate to the Chairman of the Board, Chief Executive Officer
or  President  of the Company the  authority  to grant  options to any  eligible
employee  of the  Company.  If such  authority  is  delegated,  the  Committee's
designation  of authority  shall  include the authority to determine (i) to whom
the Option is to be granted, (ii) the number of shares optioned, (iii) the terms
and conditions of the Option, and (iv) in the case of replacement  Options,  the
terms and conditions of such Option.

        The  committee  or any  person  to whom it has  delegated  authority  as
aforesaid  may employ one or more  Persons to render  advice with respect to any
responsibility  the  Committee  or such  Person  may have  under the  Plan.  The
Committee may employ attorneys,  consultants,  accountants, or other Persons and
the Committee,  the Company, and its officers and directors shall be entitled to
rely upon the advice,  opinions, or valuations of any such Persons. No member or
agent of the Committee shall be personally liable for any action,  determination
or  interpretation  made in good faith with  respect to the Plan and all members
and agents of the Committee  shall be fully  protected by the Company in respect
of any such action, determination or interpretation.

        5.     Terms and Conditions of Options.

               a. Only Eligible Participants shall be eligible to receive grants
of  Options  under  this  Plan.  "Eligible  Participants"  shall  mean:  (i) all
directors  of the  Company;  (ii)  all  officers  (whether  or not they are also
directors)  of the Company;  and (iii) all key employees (as such persons may be
determined  by the Stock  Option  Committee  from time to time) of the  Company,
provided that such officers and key employees  have a customary  work week of at
least forty hours in the employ of the Company.

               b. Type of Options. Each option granted under the Plan shall be a
non-qualified stock option (an "Option").

               c.  Options  and Grants.  Options  shall be  evidenced  by Option
Agreements.  The agreements  shall conform to the  requirements of the Plan, and
may contain such other provisions  (including  restrictions upon the exercise or
vesting of the Option,  and  provisions for the protection of the Options in the
event  of  mergers,  consolidations,  dissolutions,  and  liquidations)  as  the
Committee may deem advisable.

               d. Option Price. The price at which Common Stock may be purchased
upon  exercise of an Option shall be  determined  by the Committee in accordance
with its rules, or, in their absence, by the Committee's discretion.

               e. Period of Option.  The expiration date of such Option shall be
fixed by the Committee,  but,  notwithstanding  any provision of the Plan to the
contrary, such expiration date shall not be more than ten years from the date of
grant.

               f. Nontransferability of Stock Options. Each Option shall, by its
terms,  be  nontransferable  by the  Optionee  other  than by will,  the laws of
descent and distribution or pursuant to a domestic  relations order and shall be
exercisable during the Optionee's  lifetime only by the Optionee except pursuant
to a domestic relations order.

               g. Adjustments and Corporate Reorganizations.  If the outstanding
shares of Common  Stock are  increased  or  decreased,  or are  changed  into or
exchanged for a different number of kind of shares or securities, as a result of
one or more  reorganizations,  recapitalizations,  stock  splits,  reverse stock
splits,  stock dividends or the like,  appropriate  adjustments shall be made in
the  number  and/or  kind of shares  or  securities  for  which the  unexercised
portions of this Option may  thereafter be exercised,  all without any change in
the aggregate exercise price applicable to the unexercised  Options,  but with a
corresponding  adjustment  in the  exercise  price per share or other  unit.  No
fractional  share of stock shall be issued  under the  Options or in  connection
with any such adjustment.  Such adjustments  shall be made by or under authority
of the Board, whose determinations as to what adjustments shall be made, and the
extent thereof, shall be final, binding and conclusive.

<PAGE>

                      Upon the  dissolution  or  liquidation of the Company,  or
upon a reorganization,  merger or  consolidation of  the Company  as a result of
which the outstanding  securities of  the class  then subject to the Options are
changed  into or exchanged  for  cash or  property  or  securities  not  of  the
Company's  issue,  or  upon  a  sale  of substantially  all  the property of the
Company to, or the  acquisition  of stock representing  more than eighty percent
(80%) of  the voting  power of the stock  of the Company  then  outstanding  by,
another corporation  or person,  the Options shall terminate unless provision be
made  in writing  in connection  with such  transaction  for  the  assumption of
options  previously  granted under the Stock Option Plan under  which the Option
was granted, or the substitution for such options any options covering the stock
of  a  successor employer corporation,  or a  parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and prices, in which
event the  Options shall continue in the manner and under the terms so provided.
If the Options shall terminate pursuant  to the foregoing sentence, the Optionee
shall have the right, at such time prior to the  consummation of the transaction
causing such termination as the Company shall reasonably designate, to  exercise
all  Options  granted to  Optionee, including the Options not yet exercisable.

               h. Death of Holder of Option. Except as otherwise provided in the
applicable Option Agreement, in the event an Optionee to whom an Option has been
granted under the Plan dies during, or within three months after the termination
of,  his  employment  by the  Company,  such  Option  (unless it shall have been
previously terminated pursuant to the provisions of the Plan or unless otherwise
provided in his Option  Agreement)  may be  exercised  (to the extent the entire
number of  shares  covered  by the  Option  whether  or not  purchasable  by the
employee  at the date of his  death) by the  executor  or  administrator  of the
optionee's  estate or by the person or persons to whom the  optionee  shall have
transferred such Option by will or by the laws of descent and  distribution,  at
any time  within a period  of 12  months  after  his  death,  but not  after the
exercise termination date set forth in the relevant Option Agreement.

               i.     Exercise and Payment.

                      i.     An option  may be exercised  by notice (in the form
prescribed  by the  Committee) to the Company specifying the number of Shares to
be purchased.  Payment for the  number of Shares  purchased upon the exercise of
an option shall be made in full  at  the  price  provided  for in the applicable
Option  Agreement and such purchase  price shall be paid  by the delivery to the
Company of cash  (including  check or  similar  draft) in United States  dollars
or previously  owned whole Shares that have been owned by the  optionee for more
than six (6) months or a  combination  thereof.   Shares used in  payment of the
purchase  price shall be valued at their Fair Market Value as of the date notice
of exercise is received by the Company.   Any Shares  delivered  to  the Company
shall be in such form as is  acceptable to the Company.

                      ii.    The  Company  may defer making delivery  of  Shares
under the Plan until satisfactory arrangements have been made for the payment of
any tax attributable to exercise of an option.  The  Administrator may,  in  its
sole discretion,  permit an optionee to elect,  in such form and at such time as
the  Administrator  may prescribe,  to pay all or a portion of all taxes arising
in connection with the exercise of an option by electing to (A) have the Company
withhold whole Shares, or (B) deliver other whole Shares previously owned by the
optionee having a Fair Market Value  not greater than the amount to be withheld;
provided,  however,  that  the  amount  to  be  withheld  shall  not  exceed the
optionee's estimated total tax obligations associated with the transaction.

                             The Company may elect to pay an optionee the amount
of  optionee's  federal  and  state  income  tax  liability  attributable to the
granting of the Option, or the exercise by the optionee of the Option, whichever
the  case may be, to the extent  the  Company  receives  a  federal  income  tax
deduction for compensation  expense by  reason of the grant of the Option or the
exercise of that  Option by  optionee.  Within  ninety  (90) days after the year
in which the  optionee  incurs such tax liability by reason of grant or exercise
of the Option, the company by vote of the Board, and the optionee shall mutually
determine  the  amount  of  federal  and  state  income tax  liability  owing by
optionee  as a  result thereof  and shall  settle for  the amount  to be paid by
Company   to   Optionee  to   reimburse  optionee   for   that  liability  after
consideration and appropriate credit for the amount of federal and state  income
tax  withheld by the Company for the  optionee for the preceding year.

<PAGE>

        6. Amendment and  Termination.  The Board of the Company may at any time
and from time to time  suspend,  amend,  or terminate the Plan and may, with the
consent of an optionee,  make such  modifications of the terms and conditions of
that optionee's Stock Option as it shall deem advisable.

        7.  Rights  of  Eligible   Participants   and  Optionees.   No  Eligible
Participant,  optionee  or other  person  shall  have  any  claim or right to be
granted a Stock  Option  under this Plan,  and neither  this Plan nor any action
taken  hereunder  shall be deemed to give or be construed as giving any Eligible
Participant,  optionee or other person any right to be retained in the employ of
the Company.  Without limiting the generality of the foregoing,  no person shall
have  any  rights  as a  result  of  his or her  classification  of an  Eligible
Participant  or optionee,  such  classifications  being made solely to describe,
define and limit those persons who are eligible for consideration for privileges
under the Plan.

        8. Privileges of Stock Ownership;  Regulatory Law Compliance;  Notice of
Sale. No optionee shall be entitled to the  privileges of stock  ownership as to
any Option  Shares not actually  issued and  delivered.  No Option Shares may be
purchased  upon the  exercise  of a Stock  Option  unless and until all and then
applicable  requirements of all regulatory  agencies having jurisdiction and all
applicable requirements of the securities exchanges upon which securities of the
Company are listed (if any) shall have been fully  complied  with.  The optionee
shall,  not more than thirty (30) days after each sale or other  disposition  of
shares of Common Stock acquired pursuant to the exercise of Stock Options,  give
the Company notice in writing of such sale or other disposition.

        9.  Effective  Date of the Plan.  The Plan shall be deemed adopted as of
June 1, 1999.

        10.  Exculpation  and  Indemnification  of Stock  Option  Committee.  In
addition to any applicable  coverage under any directors and officers  liability
or similar  insurance  policy,  the  present,  former and future  members of the
Committee,  and each of them,  who is or was a director,  officer or employee of
the Company shall be indemnified by the Company to the extent  authorized in and
permitted  by the  Company's  Certificate  of  Incorporation,  and/or  Bylaws in
connection with all actions,  suits and proceedings to which they or any of them
may be a party by reason of any act or omission  of any member of the  Committee
under or in connection with the Plan or any Option granted thereunder.

        11.  Agreement  and  Representations  of Optionee.  Unless the shares of
Common Stock covered by this Plan have been  registered  with the Securities and
Exchange  Commission  pursuant  to  the  registration   requirements  under  the
Securities  Act of 1933,  each  optionee  shall:  (i) by and upon  accepting  an
Option,  represent  and agree in  writing,  in the form of the  letter  attached
hereto as Exhibit "A", for himself or herself and his or her transferees by will
or the laws of descent and distribution, that the Option shares will be acquired
for investment  purposes and not for resale or  distribution;  and (ii) and upon
the exercise of an Option, or a part thereof,  furnish evidence  satisfactory to
counsel for the Company,  including  written and signed  representations  in the
form of the letter attached hereto as Exhibit "B", to the effect that the Option
Shares  are  being  acquired  for  investment  purposes  and not for  resale  or
distribution,  and that the Option  Shares being  acquired  shall not be sold or
otherwise transferred by the optionee except in compliance with the registration
provisions  under the  Securities  Act of 1933,  as  amended,  or an  applicable
exemption therefrom. Furthermore, the Company, at its sole discretion, to assure
itself that any sale or distribution by the optionee complies with this Plan and
any applicable  federal or state securities laws, may take all reasonable steps,
including placing stop transfer  instructions with the Company's  transfer agent
prohibiting transfers in violation of the Plan and affixing the following legend
(and/or  such  other  legend or  legends  as the  Committee  shall  require)  on
certificates evidencing the shares:

<PAGE>

        "THE SHARES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN  REGISTERED
        UNDER  THE  SECURITIES  ACT OF 1933,  AS  AMENDED,  AND MAY NOT BE SOLD,
        PLEDGED,  HYPOTHECATED  OR OTHERWISE  TRANSFERRED OR OFFERED FOR SALE IN
        THE ABSENCE OF AN EFFECTIVE  REGISTRATION STATEMENT WITH RESPECT TO THEM
        UNDER THE ACT OR A WRITTEN  OPINION OF COUNSEL  FOR THE HOLDER  THEREOF,
        WHICH OPINION SHALL BE ACCEPTABLE TO GULFPORT ENERGY  CORPORATION,  THAT
        REGISTRATION IS NOT REQUIRED."

At any time that an Optionee  contemplates  the disposition of any of the Option
Shares (whether by sale, exchange,  gift, or other form of transfer),  he or she
shall first notify the Company of such proposed disposition and shall thereafter
cooperate with the Company in complying with all applicable  requirements of law
which, in the opinion of counsel for the Company, must be satisfied prior to the
making of such disposition.  Before consummating such disposition,  the optionee
shall  provide to the Company an opinion of  optionee's  counsel,  of which both
such opinion and such counsel shall be  satisfactory  to the Company,  that such
disposition  will not result in a violation  of any state or federal  securities
laws or regulations. The Company shall remove any legend affixed to certificates
for Option Shares  pursuant to this Section if and when all of the  restrictions
on the transfer of the Option Shares, whether imposed by this Plan or federal or
state law, have terminated. Notwithstanding the optionee shall have the right to
have his  options  included  in the first  registration  statement  filed by the
Company  following  the grant of his  options.  If the Company has no  immediate
plans to file a registration  statement,  the Board, in its discretion may elect
to file a registration  statement specifically for the options granted under the
Plan.

        12. Severability. If any provision of this Plan as applied to any person
or to any circumstance shall be adjudged by a court of competent jurisdiction to
be void,  invalid,  or unenforceable,  the same shall in no way affect any other
provision   hereof,   the  application  of  any  such  provision  in  any  other
circumstances, or the validity or enforceability hereof.

        13. Construction.  Where the context or construction requires, all words
applied in the plural  herein  shall be deemed to have been used in the singular
and vice versa,  and the  masculine  gender  shall  include the feminine and the
neuter and vice versa.

        14. Headings. The headings of the several paragraphs herein are inserted
solely for  convenience  of reference and are not intended to form a part of and
are not  intended  to govern,  limit or aid in the  construction  of any term or
provision hereof.

        15.  Governing Law. To the extent not governed by the laws of the United
States, this Plan shall be governed by and construed in accordance with the laws
of the State of Delaware.

        16.  Conflict.  In the  event of any  conflict  between  the  terms  and
provisions  of this  Plan  and any  other  document,  agreement  or  instrument,
including  without  limitation,  any  Stock  Option  Agreement,  the  terms  and
provisions of this Plan shall control.

<PAGE>
                                   EXHIBIT "A"

                                              _____________, 1999

Gulfport Energy Corporation
6307 Waterford Blvd., Suite 100
Oklahoma City, OK  73118

Gentlemen:

        On this _____ day of  ____________,  1999, the undersigned has received,
pursuant to the Gulfport Energy  Corporation 1999 Stock Option Plan (the "Plan")
and the Stock Option Agreement (the  "Agreement") by and between Gulfport Energy
Corporation (the "Company") and the undersigned,  dated  ____________,  1999, an
option to  purchase  ________  shares of the no par  value  common  stock of the
Company (the "Stock").

        In consideration of the grant of such option by the Company:

        1. I hereby  represent  and warrant to you that the Stock to be acquired
pursuant  to the  option  will be  acquired  by me in good  faith and for my own
personal  account,  and not with a view to  distributing  the Stock to others or
otherwise  reselling  the stock in violation of the  Securities  Act of 1933, as
amended, or the rules and regulations promulgated thereunder.

        2. I hereby  acknowledge and agree that: (a) the Stock to be acquired by
me  pursuant  to the  Plan  has not  been  registered;  and (b) the  Stock to be
acquired by me will not be freely tradable unless the Stock is either registered
under the  Securities  Act of 1933, as amended,  or the holder  presents a legal
opinion  acceptable to Gulfport  Energy  Corporation  that the transfer will not
violate the federal securities laws.

        3. I understand  that the Company is relying upon the truth and accuracy
of the representations  and agreements  contained herein in determining to grant
such options to me and upon subsequently  issuing any Stock pursuant to the Plan
without the Company first registering the same under the Securities Act of 1933,
as amended.

        4. I understand that the  certificate  evidencing the Stock to be issued
pursuant to the Plan will  contain a legend upon the face  thereof to the effect
that the Stock is not  registered  under the Securities At of 1933 and that stop
transfer  orders  will  be  placed  against  the  shares  with  Gulfport  Energy
Corporation's transfer agent.

        5. In further consideration for the grant of an option to purchase Stock
of Gulfport Energy,  the undersigned hereby agrees to indemnify you and hold you
harmless  against  all  liability,   cost  or  expenses  (including   reasonable
attorney's  fees) arising out of or as a result of any distribution or resale of
shares of Stock issued by the  undersigned in violation of the securities  laws.
The  agreements  contained  herein  shall inure to the benefit of and be binding
upon  the  respective  legal  representatives,  successors  and  assigns  of the
undersigned and Gulfport Energy.

                                           Very truly yours,

                                           /s/
                                           -------------------------------------

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