Document:

<PAGE>

         SALE AND SERVICING AGREEMENT (this "AGREEMENT") dated as of November
15, 2005, among PAGE THREE FUNDING LLC, a Delaware limited liability company
(the "PURCHASER"), CONSUMER PORTFOLIO SERVICES, INC., a California corporation
(in its capacities as Seller, the "SELLER" and as Servicer, the "SERVICER,"
respectively), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association (in its capacities as Backup Servicer, the "BACKUP SERVICER" and as
Trustee, the "TRUSTEE," respectively).

         WHEREAS, the Purchaser desires to purchase, from time to time,
portfolios of receivables arising in connection with motor vehicle retail
installment sale contracts acquired by Consumer Portfolio Services, Inc., from
motor vehicle dealers and independent finance companies;

         WHEREAS, the Purchaser intends to finance such purchases by issuing the
Note, secured by, among other assets, the Receivables and the Other Conveyed
Property, pursuant to the Indenture (as defined below);

         WHEREAS, the Seller is willing to sell such Receivables and the Other
Conveyed Property to the Purchaser from time to time; and

         WHEREAS the Servicer is willing to service all such Receivables.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties hereto agree as follows:

                                   ARTICLE I
                                   ---------

                                   DEFINITIONS
                                   -----------

         SECTION 1.1. DEFINITIONS. Capitalized terms used in this Agreement and
not otherwise defined in this Agreement, shall have the meanings set forth in
Annex A attached hereto.

         SECTION 1.2. OTHER DEFINITIONAL PROVISIONS.

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

                  (b) Accounting terms used but not defined or partly defined in
         this Agreement, in any instrument governed hereby or in any certificate
         or other document made or delivered pursuant hereto, to the extent not
         defined, shall have the respective meanings given to them under GAAP as
         in effect on the date of determination or any such instrument,
         certificate or other document, as applicable. To the extent that the
         definitions of accounting terms in this Agreement or in any such
         instrument, certificate or other document are inconsistent with the
         meanings of such terms under GAAP, the definitions contained in this
         Agreement or in any such instrument, certificate or other document
         shall control.

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

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

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

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

                                   ARTICLE II

                            CONVEYANCE OF RECEIVABLES
                            -------------------------

         SECTION 2.1. CONVEYANCE OF RECEIVABLES.

                  (a) In consideration of the Purchaser's delivery to or upon
         the order of the Seller on any Funding Date of the Purchase Price
         therefor, the Seller does hereby sell, transfer, assign, set over and
         otherwise convey to the Purchaser, without recourse (subject to the
         obligations set forth herein) all right, title and interest of the
         Seller, whether now existing or hereafter arising, in, to and under:

                           (i) the Receivables listed in Schedule A to each
                  Assignment executed and delivered by the Seller on such
                  Funding Date;

                           (ii) all monies received under the Receivables on and
                  after the related Cutoff Date and all Net Liquidation Proceeds
                  received with respect to the Receivables on and after the
                  related Cutoff Date;

                           (iii) the security interests in the Financed Vehicles
                  and any accessions thereto granted by Obligors pursuant to the
                  related Contracts and any other interest of the Seller in such
                  Financed Vehicles, including, without limitation, the
                  certificates of title or, with respect to such Receivables
                  that finance a vehicle in the States listed in ANNEX B, other
                  evidence of title issued by the applicable Department of Motor
                  Vehicles or similar authority in such States, with respect to
                  such Financed Vehicles;

                           (iv) any proceeds from claims on any Receivables
                  Insurance Policies or certificates relating to the Financed
                  Vehicles securing the Receivables or the Obligors thereunder;

                           (v) all proceeds from recourse against Dealers with
                  respect to the Receivables and all other rights (but none of
                  the obligations) of the Seller under any agreements with
                  Dealers;

                           (vi) refunds for the costs of extended service
                  contracts with respect to Financed Vehicles securing the
                  Receivables, refunds of unearned premiums with respect to
                  credit life and credit accident and health insurance policies
                  or certificates covering an Obligor or Financed Vehicle under
                  a Receivable or his or her obligations with respect to a
                  Financed Vehicle and any recourse to Dealers for any of the
                  foregoing;

                           (vii) the Receivable File related to each Receivable
                  and all other documents that the Seller keeps on file in
                  accordance with its customary procedures relating to the
                  Receivables for Obligors of the Financed Vehicles;

                           (viii) all amounts and property from time to time
                  held in or credited to the Collection Account or the Lockbox
                  Account;

                           (ix) all property (including the right to receive
                  future Net Liquidation Proceeds) that secures a Receivable
                  that has been acquired by or on behalf of the Seller or the
                  Purchaser pursuant to a liquidation of such Receivable;

                           (x) the proceeds from any Servicer's errors and
                  omissions policy or fidelity bond, to the extent such proceeds
                  relate to any Receivable, Financed Vehicle or other
                  Collateral; and

                                       2
<PAGE>

                           (xi) all present and future claims, demands, causes
                  and choses in action in respect of any or all of the foregoing
                  and all payments on or under and all proceeds of every kind
                  and nature whatsoever in respect of any or all of the
                  foregoing, including all proceeds of the conversion, voluntary
                  or involuntary, into cash or other liquid property, all cash
                  proceeds, accounts, accounts receivable, notes, drafts,
                  acceptances, chattel paper, checks, deposit accounts,
                  insurance proceeds, condemnation awards, rights to payment of
                  any and every kind and other forms of obligations and
                  receivables, instruments and other property which at any time
                  constitute all or part of or are included in the proceeds of
                  any of the foregoing.

                  (b) The Seller shall transfer to the Purchaser the Receivables
         and the Other Conveyed Property described in PARAGRAPH (A) above only
         upon the satisfaction of each of the conditions set forth below on or
         prior to the related Funding Date. In addition to constituting
         conditions precedent to any purchase hereunder and under each
         Assignment, the following shall also be conditions precedent to any
         Advance on any Funding Date under the terms of the Note Purchase
         Agreement:

                           (i) the Seller shall have provided the Purchaser,
                  Trustee, the Note Purchaser and the Noteholders with (A) an
                  Addition Notice substantially in the form of EXHIBIT G hereto
                  (which shall include a supplement to the Schedule of
                  Receivables) and (B) a data tape or other electronic file
                  containing information regarding the Related Receivables in
                  the form of EXHIBIT H hereto to be transferred on such Funding
                  Date (the "DATA TAPE FIELDS") no later than 2:00 p.m. (New
                  York City time) four (4) Business Days prior to such Funding
                  Date and shall have provided any information reasonably
                  requested by any of the foregoing with respect to the Issuer,
                  the Servicer and the Related Receivables;

                           (ii) the Seller shall, to the extent required by
                  SECTION 4.2 of this Agreement, have deposited in the
                  Collection Account all collections received on and after the
                  Cutoff Date in respect of the Related Receivables to be
                  purchased on such Funding Date;

                           (iii) as of each Funding Date, (A) the Seller shall
                  not be insolvent and shall not become insolvent as a result of
                  the transfer of Related Receivables on such Funding Date, (B)
                  the Seller shall not intend to incur or believe that it shall
                  incur debts that would be beyond its ability to pay as such
                  debts mature, (C) such transfer shall not have been made with
                  actual intent to hinder, delay or defraud any Person and (D)
                  the assets of the Seller shall not constitute unreasonably
                  small capital to carry out its business as then conducted;

                           (iv) the Facility Termination Date shall not have
                  occurred;

                           (v) the Servicer shall have established a Lockbox
                  Account acceptable to the Note Purchaser;

                           (vi) each of the representations and warranties made
                  by the Seller pursuant to SECTION 3.1 and the other Basic
                  Documents with respect to the Related Receivables to be
                  purchased on such Funding Date shall be true and correct as of
                  the related Funding Date and the Seller shall have performed
                  all obligations to be performed by it hereunder or in any
                  Assignment on or prior to such Funding Date;

                           (vii) the Seller shall, at its own expense, on or
                  prior to the Funding Date, indicate in its computer files that
                  the Related Receivables to be purchased on such Funding Date
                  have been sold to the Purchaser pursuant to this Agreement or
                  an Assignment, as applicable, and have been pledged by the
                  Purchaser to the Trustee under the Indenture;

                           (viii) the Seller shall have taken all action
                  required to maintain (i) the first priority perfected
                  ownership interest of the Purchaser in the Related Receivables
                  and Other Conveyed Property and (ii) the first priority
                  perfected security interest of the Trustee in the Collateral;

                                       3
<PAGE>

                           (ix) no selection procedures adverse to the interests
                  of the Note Purchaser or any Noteholder shall have been
                  utilized in selecting the Related Receivables to be sold on
                  such Funding Date;

                           (x) the addition of any such Related Receivables to
                  be purchased on such Funding Date shall not result in a
                  material adverse tax consequence to any Noteholder, the Note
                  Purchaser or the Purchaser;

                           (xi) the Seller shall have delivered to each
                  Noteholder, the Note Purchaser and the Trustee an Officers'
                  Certificate confirming the satisfaction of each condition
                  precedent specified in this paragraph (b);

                           (xii) no Funding Termination Event, Servicer
                  Termination Event, or any event that, with the giving of
                  notice or the passage of time, would constitute a Funding
                  Termination Event or Servicer Termination Event, shall have
                  occurred and be continuing;

                           (xiii) the Trustee shall have confirmed receipt of
                  the related Receivable File for each Related Receivable
                  included in the Borrowing Base calculation and shall have
                  delivered a copy to the Noteholders and the Note Purchaser of
                  a Trust Receipt with respect to the Receivable Files related
                  to the Related Receivables to be purchased on such Funding
                  Date;

                           (xiv) the Seller shall have filed or caused to be
                  filed all necessary UCC-l financing statements (or amendments
                  thereto) necessary to maintain (in each case assuming for
                  purposes of this clause (xiv) that such perfection may be
                  achieved by making the appropriate filings), and taken any
                  other steps necessary to maintain, (1) the first, priority,
                  perfected ownership interest of Purchaser and (2) the first
                  priority, perfected security interest of the Trustee, with
                  respect to the Related Receivables and Other Conveyed Property
                  and the Collateral, respectively, to be transferred on such
                  Funding Date;

                           (xv) the Seller shall have executed and delivered an
                  Assignment in the form of EXHIBIT F with respect to such
                  Related Receivables and the Other Conveyed Property related
                  thereto;

                           (xvi) each of the conditions precedent to such
                  Advance set forth in this Agreement, the Indenture and the
                  Note Purchase Agreement shall have been satisfied; and

                           (xvii) the Funding Date shall not occur in the same
                  calendar week as any prior Funding Date;

                  Unless waived by Note Purchaser in writing, the Seller
         covenants that in the event any of the foregoing conditions precedent
         are not satisfied with respect to any Related Receivable on the date
         required as specified above, the Seller will immediately repurchase
         such Related Receivable from the Purchaser, at a price equal to the
         Purchase Amount thereof, in the manner specified in SECTION 3.2 and
         SECTION 4.7. Except with respect to ITEM (XIII) above, the Trustee may
         rely on the accuracy of the Officers' Certificate delivered pursuant to
         ITEM (XI) above without independent inquiry or verification.

                  (c) PAYMENT OF PURCHASE PRICE. In consideration for the sale
         of the Related Receivables and Other Conveyed Property described in
         SECTION 2.1(A) or the related Assignment, the Purchaser shall, on each
         Funding Date on which Related Receivables are transferred hereunder,
         pay to or upon the order of the Seller the applicable Purchase Price in
         the following manner: (i) cash in an amount equal to the amount of the
         Advance received by the Purchaser under the Notes on such Funding Date
         and (ii) to the extent the Purchase Price for the related Receivables
         and Other Conveyed Property exceeds the amount of cash described in
         (i), such excess shall be treated as a capital contribution by the
         Seller to the Purchaser.

                                       4
<PAGE>

SECTION 2.2. TRANSFERS INTENDED AS SALES. It is the intention of the Seller and
the Purchaser that each transfer and assignment contemplated by this Agreement
and each Assignment shall constitute a sale of the Related Receivables and Other
Conveyed Property from the Seller to the Purchaser free and clear of all liens
and rights of others and it is intended that the beneficial interest in and
title to the Related Receivables and Other Conveyed Property shall not be part
of the Seller's estate in the event of the filing of a bankruptcy petition by or
against the Seller under any bankruptcy law. In the event that, notwithstanding
the intent of the Seller and the Purchaser, the transfer and assignment
contemplated hereby or by any Assignment is held not to be a sale, this
Agreement and each Assignment shall constitute a security agreement under
applicable law and the Seller hereby grants to the Purchaser a security interest
in the Receivables and Other Conveyed Property, which security interest has been
assigned to the Trustee, acting on behalf of the Noteholders and Note Purchaser.

SECTION 2.3. FURTHER ENCUMBRANCE OF RECEIVABLES AND OTHER CONVEYED PROPERTY.

                  (a) Immediately upon the conveyance to the Purchaser by the
         Seller of the Related Receivables and any item of the related Other
         Conveyed Property pursuant to SECTION 2.1 and the related Assignment,
         all right, title and interest of the Seller in and to such Related
         Receivables and Other Conveyed Property shall terminate, and all such
         right, title and interest shall vest in the Purchaser.

                  (b) Immediately upon the vesting of any Related Receivables
         and the related Other Conveyed Property in the Purchaser, the Purchaser
         shall have the sole right to pledge or otherwise encumber such Related
         Receivables and the related Other Conveyed Property. Pursuant to the
         Indenture, the Purchaser shall grant a security interest in the
         Collateral to secure the repayment of the Notes and the other Secured
         Obligations.

                  (c) The Trustee shall, at such time as (i) the Facility
         Termination Date has occurred, (ii) the payment in full of the Secured
         Obligations has occurred, (iii) the Note Purchase Agreement shall have
         been terminated pursuant to its terms, (iv) there is no Note
         Outstanding, (v) all sums due to the Trustee pursuant to the Basic
         Documents have been paid, and (vi) all other conditions precedent under
         the Indenture shall have been satisfied, release any remaining portion
         of the Collateral to the Purchaser.

                                  ARTICLE III
                                  -----------

                                 THE RECEIVABLES
                                 ---------------

         SECTION 3.1. REPRESENTATIONS AND WARRANTIES OF SELLER. (a) The Seller
makes the following representations and warranties as to the Receivables to the
Purchaser, to the Trustee for the benefit of the Note Purchaser and the
Noteholders, to the Note Purchaser and to the Noteholders, on which the
Purchaser relies in acquiring the Receivables, on which the Trustee relies in
accepting a pledge of the Receivables under the Indenture, on which the
Noteholders have relied in purchasing the Notes and on which the Note Purchaser
will rely in paying the Advance Amount to the Purchaser. Such representations
and warranties speak as of the Closing Date and as of each Funding Date;
PROVIDED that to the extent such representations and warranties relate to the
Receivables conveyed on any Funding Date, such representations and warranties
shall speak as of the related Funding Date, but shall survive the sale, transfer
and assignment of the Receivables to the Purchaser and the pledge thereof by the
Purchaser hereunder to the Trustee pursuant to the Indenture.

                           (i) CHARACTERISTICS OF RECEIVABLES. Each Receivable
                  (1) has been originated in the United States of America by a
                  Dealer for the retail sale of a Financed Vehicle in the
                  ordinary course of such Dealer's business and without any
                  fraud or misrepresentation on the part of the Dealer, such
                  Dealer had all necessary licenses and permits to originate
                  such Receivables in the state where such Dealer was located,
                  has been fully and properly executed by the parties thereto,
                  has been purchased by the Seller directly from the Dealer in
                  connection with the sale of Financed Vehicles by the Dealers
                  and has been validly assigned without any intervening
                  assignments by such Dealer to the Seller in accordance with
                  its terms, (2) has created a valid, subsisting, and
                  enforceable first priority perfected security interest in
                  favor of the Seller in the Financed Vehicle, which security
                  interest has been validly assigned by the Seller to the
                  Purchaser and by the Purchaser to the Trustee, (3) contains

                                       5
<PAGE>

                  customary and enforceable provisions such that the rights and
                  remedies of the holder or assignee thereof shall be adequate
                  for realization against the collateral of the benefits of the
                  security including without limitation a right of repossession
                  following a default, (4) provides for level weekly, bi-weekly,
                  semi-monthly or monthly payments that fully amortize the
                  Amount Financed over the original term (except for the last
                  payment, which may be different from the level payment but in
                  no event shall exceed three times such level payment) and
                  yield interest at the Annual Percentage Rate, (5) was
                  originated by a Dealer to an Obligor and was sold by the
                  Dealer to the Seller without any fraud or misrepresentation on
                  the part of such Dealer, the Obligor or the Seller, (6) is
                  denominated in U.S. dollars; (7) provides, in the case of
                  prepayment, for the full payment of the Principal Balance
                  thereof plus accrued interest through the date of prepayment
                  based on the APR of the Receivable; and (8) contains no
                  obligation to lend more money to the related Obligor in the
                  future.

                           (ii) ADDITIONAL RECEIVABLES CHARACTERISTICS. As of
                  the related Funding Date, as applicable:

                           (A) each Related Receivable has (1) an original term
                  of 24 to 72 months; (2) an original Amount Financed of at
                  least $3,000 and not more than $35,000; and (3) had an APR of
                  at least 8% and not more than 30% (subject to applicable
                  laws);

                           (B) each Related Receivable is not more than 30 days
                  past due with respect to more than 10% of any Scheduled
                  Receivable Payment as of the related Cutoff Date and no funds
                  have been advanced by the Seller, any Dealer or anyone acting
                  on their behalf in order to cause any Related Receivable to
                  satisfy such requirement;

                           (C) no Related Receivable has been extended beyond
                  its original term, except in accordance with the Seller's
                  Contract Purchase Guidelines regarding deferments or
                  extensions;

                           (D) each Related Receivable satisfies in all material
                  respects the Seller's Contract Purchase Guidelines as in
                  effect on the Closing Date or as otherwise amended from time
                  to time with the prior written consent of the Note Purchaser
                  (which consent shall not be unreasonably withheld); and

                           (E) each Related Receivable that is a Seasoned
                  Receivable shall (i) not have an Obligor that has failed to
                  make the first Scheduled Receivable Payment due on such
                  Seasoned Receivable, (ii) not have been sold to the Purchaser
                  and pledged to the Trustee for the benefit of the Noteholders
                  and the Note Purchaser more than 120 days after the Seller
                  paid the related Dealer for such Seasoned Receivable, (iii)
                  not have an Obligor that has ever been delinquent in payment
                  with respect to such Seasoned Receivable for more than sixty
                  (60) days.

                           (iii) SCHEDULE OF RECEIVABLES. The information with
                  respect to the Related Receivables set forth in Schedule A to
                  the related Assignment is true and correct in all material
                  respects as of the close of business on the related Cutoff
                  Date, and no selection procedures adverse to any Noteholders
                  or the Note Purchaser have been utilized in selecting the
                  Related Receivables to be sold hereunder and thereunder.

                           (iv) COMPLIANCE WITH LAW. Each Related Receivable,
                  the sale of the Financed Vehicle and the sale of any physical
                  damage, credit life and credit accident and health insurance
                  and any extended warranties or service contracts complied at
                  the time the Related Receivable was originated or made and at
                  the execution of the applicable Assignment complies in all
                  material respects with all requirements of applicable Federal,
                  State, and local laws, including, without limitation, Consumer
                  Laws. Each Receivable has been serviced in compliance with all
                  applicable requirements of law.

                                       6
<PAGE>

                           (v) NO GOVERNMENT OBLIGOR. None of the Related
                  Receivables are due from the United States of America or any
                  State or from any agency, department, or instrumentality of
                  the United States of America or any State.

                           (vi) NO FLEET SALES. None of the Receivables have
                  been included in a "fleet" sale (i.e., a sale to any single
                  Obligor of more than five Financed Vehicles).

                           (vii) SECURITY INTEREST IN FINANCED VEHICLE.
                  Immediately subsequent to the sale, assignment and transfer
                  thereof to the Purchaser, each Related Receivable shall be
                  secured by a validly perfected first priority security
                  interest in the Financed Vehicle in favor of the Seller as
                  secured party which security interest has been validly
                  assigned to the Purchaser and subsequently validly pledged to
                  the Trustee for the benefit of the Noteholders and Note
                  Purchaser, and such assigned security interest is prior to all
                  other liens upon and security interests in such Financed
                  Vehicle which now exist or may hereafter arise or be created
                  (except, as to priority, for any tax liens or mechanics' liens
                  which may arise after the related Funding Date as a result of
                  an Obligor's failure to pay its obligations, as applicable).

                           (viii) RECEIVABLES IN FORCE. No Related Receivable
                  has been satisfied, subordinated or rescinded, nor has any
                  related Financed Vehicle been released from the lien granted
                  by the related Receivable in whole or in part.

                           (ix) NO WAIVER. Except as permitted under SECTION 4.2
                  and CLAUSE (X) below, no provision of a Related Receivable has
                  been waived, altered or modified in any respect since its
                  origination. No Related Receivable has been modified as a
                  result of application of the Servicemembers Civil Relief Act,
                  as amended.

                           (x) NO AMENDMENTS. No Related Receivable has been
                  amended, modified, waived or refinanced except as such Related
                  Receivable may have been amended in accordance with Servicer's
                  Servicing Guidelines.

                           (xi) NO DEFENSES. No right of rescission, setoff,
                  counterclaim or defense exists or has been asserted or
                  threatened with respect to any Related Receivable. The
                  operation of the terms of any Related Receivable or the
                  exercise of any right thereunder will not render such Related
                  Receivable unenforceable in whole or in part and such
                  Receivable is not subject to any such right of rescission,
                  setoff, counterclaim, or defense.

                           (xii) NO LIENS. As of the related Cutoff Date, (a)
                  there are no liens or claims existing or which have been filed
                  for work, labor, storage or materials relating to a Financed
                  Vehicle financed under a Related Receivable that shall be
                  liens prior to, or equal or coordinate with, the security
                  interest in the Financed Vehicle granted by the Related
                  Receivable and (b) there is no lien against the Financed
                  Vehicle financed under a Related Receivable for delinquent
                  taxes.

                           (xiii) NO DEFAULT; REPOSSESSION. Except for payment
                  delinquencies continuing for a period of not more than 45 days
                  as of the related Cutoff Date, no default, breach, violation
                  or event permitting acceleration under the terms of any
                  Related Receivable has occurred; and no continuing condition
                  that with notice or the lapse of time, or both, would
                  constitute a default, breach, violation or event permitting
                  acceleration under the terms of any Related Receivable has
                  arisen; and the Seller shall not waive and has not waived any
                  of the foregoing (except in a manner consistent with SECTION
                  4.2) and no Financed Vehicle financed under a Related
                  Receivable shall have been repossessed.

                           (xiv) INSURANCE; OTHER. (A) Each Obligor under the
                  Related Receivables has obtained an insurance policy covering
                  the Financed Vehicle as of the execution of such Receivable
                  insuring against loss and damage due to fire, theft,
                  transportation, collision and other risks generally covered by
                  comprehensive and collision coverage, the Seller and its
                  successors and assigns are named the loss payee or an

                                       7
<PAGE>

                  additional insured of such insurance policy, such insurance
                  policy is in an amount at least equal to the lesser of (i) the
                  Financed Vehicle's actual cash value or (ii) the remaining
                  Principal Balance of the Related Receivable, and each Related
                  Receivable requires the Obligor to obtain and maintain such
                  insurance naming the Seller and its successors and assigns as
                  loss payee or an additional insured, (B) each Related
                  Receivable that finances the cost of premiums for credit life
                  and credit accident and health insurance is covered by an
                  insurance policy or certificate of insurance naming the Seller
                  as policyholder (creditor) under each such insurance policy
                  and certificate of insurance and (C) as to each Related
                  Receivable that finances the cost of an extended service
                  contract, the respective Financed Vehicle which secures the
                  Related Receivable is covered by an extended service contract.
                  As of the related Cutoff Date, no Financed Vehicle is or had
                  previously been insured under a policy of forced-placed
                  insurance.

                           (xv) TITLE. It is the intention of the Seller that
                  each transfer and assignment herein contemplated constitutes a
                  sale of the Related Receivables and the related Other Conveyed
                  Property from the Seller to the Purchaser and that the
                  beneficial interest in and title to such Related Receivables
                  and related Other Conveyed Property not be part of the
                  Seller's estate in the event of the filing of a bankruptcy
                  petition by or against the Seller under any bankruptcy law. No
                  Related Receivable or related Other Conveyed Property has been
                  sold, transferred, assigned, or pledged by the Seller to any
                  Person other than the Purchaser and by the Purchaser to any
                  Person other than the Trustee. Immediately prior to each
                  transfer and assignment herein contemplated, the Seller had
                  good and marketable title to each Related Receivable and
                  related Other Conveyed Property and was the sole owner
                  thereof, free and clear of all liens, claims, encumbrances,
                  security interests, and rights of others, and, immediately
                  upon the transfer thereof to the Purchaser and the Purchaser
                  shall have good and marketable title to the Receivables and
                  the other Conveyed Property and shall be the sole owner
                  thereof, free and clear of all Liens and, immediately upon the
                  pledge thereof to the Trustee under the Indenture, the Trustee
                  for the benefit of the Noteholders and the Note Purchaser
                  shall have a valid and enforceable security interest in the
                  Collateral, free and clear of all liens, encumbrances,
                  security interests, and rights of others, and each such
                  transfer and pledge has been perfected under the UCC. No
                  Dealer has a participation in, or other right to receive,
                  proceeds of any Receivable.

                           (xvi) LAWFUL ASSIGNMENT; NO CONSENT REQUIRED. No
                  Related Receivable has been originated in, or is subject to
                  the laws of, any jurisdiction under which the sale, transfer,
                  and assignment of such Related Receivable under this Agreement
                  or the pledge of such Related Receivable under the Indenture
                  or pursuant to transfers of the Notes shall be unlawful, void,
                  or voidable. The Seller has not entered into any agreement
                  with any account debtor that prohibits, restricts or
                  conditions the assignment of any portion of the Related
                  Receivables. For the validity of such sales, transfers,
                  assignments and pledges, no consent by any Dealer, Obligor or
                  any other Person is required under any agreement or applicable
                  law.

                           (xvii) ALL FILINGS MADE. All filings (including,
                  without limitation, UCC filings or other actions) necessary in
                  any jurisdiction to give: (a) the Purchaser a first priority
                  perfected ownership interest in the Receivables and the Other
                  Conveyed Property, including, without limitation, the proceeds
                  of the Receivables (to the extent that the Purchaser can
                  obtain such first priority perfected security interest
                  pursuant to one or more filings) and (b) the Trustee, for the
                  benefit of the Noteholders and the Note Purchaser, a first
                  priority perfected security interest in the Collateral, have
                  been made, taken or performed.

                           (xviii) RECEIVABLE FILE; ONE ORIGINAL. The Seller has
                  delivered to the Trustee, at the location specified in
                  SCHEDULE B hereto, a complete Receivable File with respect to
                  each Related Receivable, and the Trustee has delivered to the
                  Purchaser, the Note Purchaser and the Noteholders a copy of
                  the Trust Receipt therefor. There is only one original
                  executed copy of each Receivable. The Servicer has in its
                  possession all other relevant documents with respect to the
                  Receivables, including without limitation the related credit
                  application and verification of insurance.

                                       8
<PAGE>

                           (xix) CHATTEL Paper. Each Related Receivable
                  constitutes "TANGIBLE CHATTEL PAPER" under the UCC.

                           (xx) TITLE DOCUMENTS. (A) If the Related Receivable
                  was originated in a State in which notation of a security
                  interest on the title document of the related Financed Vehicle
                  is required or permitted to perfect such security interest,
                  the title document of the related Financed Vehicle for such
                  Related Receivable shows, or if a new or replacement title
                  document is being applied for with respect to such Financed
                  Vehicle the title document (or, with respect to Related
                  Receivables that finance a vehicle in the States listed in
                  ANNEX B, other evidence of title issued by the applicable
                  Department of Motor Vehicles or similar authority in such
                  States) will be received within 180 days of the origination
                  date and will show, the Seller named as the original secured
                  party under the Related Receivable as the holder of a first
                  priority security interest in such Financed Vehicle, and (B)
                  if the Related Receivable was originated in a State in which
                  the filing of a financing statement under the UCC is required
                  to perfect a security interest in motor vehicles, such filings
                  or recordings have been duly made and show the Seller named as
                  the original secured party under the Related Receivable, and
                  in either case, the Trustee has the same rights as such
                  secured party has or would have (if such secured party were
                  still the owner of the Receivable) against all parties
                  claiming an interest in such Financed Vehicle, and such rights
                  have been validly pledged to the Trustee for the benefit of
                  the Noteholders and the Note Purchaser pursuant to the
                  Indenture. With respect to each Related Receivable for which
                  the title document has not yet been returned from the
                  Registrar of Titles, the Seller has received written evidence
                  from the related Dealer that such title document showing the
                  Seller as first lienholder has been applied for.

                           (xxi) VALID AND BINDING OBLIGATION OF OBLIGOR. Each
                  Related Receivable is the legal, valid and binding obligation
                  in writing of the Obligor thereunder and is enforceable in
                  accordance with its terms, except only as such enforcement may
                  be limited by bankruptcy, insolvency or similar laws affecting
                  the enforcement of creditors' rights generally, and all
                  parties to such contract had full legal capacity to execute
                  and deliver such contract and all other documents related
                  thereto and to grant the security interest purported to be
                  granted thereby. Each Related Receivable is not subject to any
                  right of set-off by the Obligor.

                           (xxii) CHARACTERISTICS OF OBLIGORS. As of the date of
                  each Obligor's application for credit from which the Related
                  Receivable arises, such Obligor (a) did not have any material
                  past due credit obligations or any personal or real property
                  repossessed or wages garnished within one year prior to the
                  date of such application, unless such amounts have been repaid
                  or discharged through bankruptcy, (b) was not the subject of
                  any Federal, State or other bankruptcy, insolvency or similar
                  proceeding pending on the date of application that has not
                  been discharged, (c) had not been the subject of more than one
                  Federal, State or other bankruptcy, insolvency or similar
                  proceeding that has not completed a Section 341 Meeting, (d)
                  was domiciled in the United States and (e) was not
                  self-employed. During the period from the date of each
                  Obligor's application for financing of the Financed Vehicle
                  from which the related Receivable arises to the applicable
                  Funding Date, no Obligor is or has been the subject of any
                  Federal, State or other bankruptcy, insolvency or similar
                  proceeding that has not completed a Section 341 Meeting.

                           (xxiii) POST-OFFICE BOX. On or prior to the next
                  billing period after the related Cutoff Date, the Servicer
                  will notify each Obligor to make payments with respect to its
                  respective Related Receivables after the related Cutoff Date
                  directly to the Post-Office Box, and will provide each Obligor
                  with a monthly statement in order to enable such Obligor to
                  make payments directly to the Post-Office Box.

                           (xxiv) CASUALTY AND IMPOUNDING. No Financed Vehicle
                  financed under a Related Receivable has suffered a Casualty
                  and the Seller has not received any notice that any Financed
                  Vehicle has been impounded.

                                       9
<PAGE>

                           (xxv) NO AGREEMENT TO LEND. The Obligor with respect
                  to each Related Receivable does not have any option under the
                  Receivable to borrow from any person any funds secured by the
                  Financed Vehicle.

                           (xxvi) OBLIGATION TO DEALERS OR OTHERS. The Purchaser
                  and its assignees will assume no obligation to Dealers or
                  other originators or holders of the Related Receivables
                  (including, but not limited to under dealer reserves) as a
                  result of its purchase of the Related Receivables.

                           (xxvii) NO IMPAIRMENT. Neither Seller nor the
                  Purchaser has done anything to convey any right to any Person
                  that would result in such Person having a right to payments
                  due under any Related Receivables or otherwise to impair the
                  rights of the Purchaser, the Trustee, the Noteholders or the
                  Note Purchaser in any Related Receivable or the proceeds
                  thereof.

                           (xxviii) RECEIVABLES NOT ASSUMABLE. No Related
                  Receivable is assumable by another Person in a manner which
                  would release the Obligor thereof from such Obligor's
                  obligations to the Purchaser or Seller with respect to such
                  Related Receivable.

                           (xxix) SERVICING. The servicing of each Related
                  Receivable and the collection practices relating thereto have
                  been lawful and in accordance with the standards set forth in
                  this Agreement; and other than Seller and the Back-up Servicer
                  pursuant to the Basic Documents, no other person has the right
                  to service the Receivable.

                           (xxx) CREATION OF SECURITY INTEREST. This Agreement
                  creates a valid and continuing security interest (as defined
                  in the UCC) in the Receivables and the Other Conveyed Property
                  in favor of the Purchaser, which security interest is prior to
                  all other Liens (other than the Lien of the Trustee under the
                  Indenture) and is enforceable as such as against creditors of
                  and purchasers from the Seller. The Indenture creates a valid
                  and continuing security interest (as defined in the UCC) in
                  the Collateral in favor of the Trustee for the benefit of the
                  Noteholders and the Note Purchaser, which security interest is
                  prior to all other Liens and is enforceable as such as against
                  creditors of and purchasers from the Issuer.

                           (xxxi) PERFECTION OF SECURITY INTEREST IN RECEIVABLES
                  AND OTHER CONVEYED PROPERTY. The Seller has caused the filing
                  of all appropriate financing statements in the proper filing
                  office in the appropriate jurisdictions under applicable law
                  in order to perfect the security interest in the Receivables
                  and the Other Conveyed Property granted to the Purchaser
                  hereunder pursuant to SECTION 2.1 and the related Assignment.

                           (xxxii) PERFECTION OF SECURITY INTEREST IN TRUST
                  ESTATE. The Purchaser has caused the filing of all appropriate
                  financing statements in the proper filing office in the
                  appropriate jurisdictions under applicable law in order to
                  perfect the security interest in the Receivables and the other
                  Collateral granted to the Trustee for the benefit of the
                  Noteholders and the Note Purchaser under the Indenture.

                           (xxxiii) PERFECTION OF SECURITY INTERESTS IN FINANCED
                  VEHICLES. The Seller has taken all steps necessary to perfect
                  its security interest against the Obligors in the Financed
                  Vehicles securing the Receivables and such security interest
                  has been validly assigned by the Seller to the Purchaser and
                  pledged by the Purchaser to the Trustee for the benefit of the
                  Noteholders and the Note Purchaser.

                           (xxxiv) NO OTHER SECURITY INTERESTS - SELLER. Other
                  than the security interest granted to the Purchaser pursuant
                  to SECTION 2.1 and the related Assignment, the Seller has not
                  pledged, assigned, sold, granted a security interest in, or
                  otherwise conveyed any of the Receivables or the Other
                  Conveyed Property, other than such security interests as are
                  released at or before the conveyance thereof. The Seller has
                  not authorized the filing of and is not aware of any financing
                  statements filed against the Seller that include a description
                  of collateral covering any portion of the Receivables and the

                                       10
<PAGE>

                  Other Conveyed Property other than any financing statement
                  relating to the security interest granted to the Purchaser
                  hereunder or that has been terminated or released as to the
                  Receivables and the Other Conveyed Property. The Seller is not
                  aware of any judgment or tax lien filings against the Seller.

                           (xxxv) NO OTHER SECURITY INTERESTS - PURCHASER. Other
                  than the security interest granted to the Trustee for the
                  benefit of the Noteholders and Note Purchaser pursuant to the
                  Indenture, the Purchaser has not pledged, assigned, sold,
                  granted a security interest in, or otherwise conveyed any of
                  the Collateral. The Purchaser has not authorized the filing of
                  and is not aware of any financing statements filed against the
                  Purchaser that include a description of collateral covering
                  any portion of the Collateral other than any financing
                  statement relating to the security interest granted to the
                  Trustee for the benefit of the Noteholders and Note Purchaser
                  under the Indenture or that has been terminated or released as
                  to the Collateral. The Purchaser is not aware of any judgment
                  or tax lien filings against the Purchaser.

                           (xxxvi) NOTATIONS ON CONTRACTS; FINANCING STATEMENT
                  DISCLOSURE. The Servicer has in its possession copies of all
                  Contracts that constitute or evidence the Receivables. The
                  Contracts that constitute or evidence the Receivables do not
                  have any marks or notations indicating that they have been
                  pledged, assigned or otherwise conveyed to any Person other
                  than the Purchaser and/or the Trustee for the benefit of the
                  Noteholders and the Note Purchaser. All financing statements
                  filed or to be filed against the Seller in favor of the
                  Purchaser in connection herewith describing the Trust Estate
                  contain a statement to the following effect: "A purchase of or
                  security interest in any collateral described in this
                  financing statement will violate the rights of the secured
                  party."

                           (xxxvii) RECORDS. On or prior to each Funding Date,
                  the Seller will have caused its records (including electronic
                  ledgers) relating to each Related Receivable to be conveyed by
                  it on such Funding Date to be clearly and unambiguously marked
                  to reflect that such Related Receivable was conveyed by it to
                  the Purchaser and pledged by the Purchaser to the Trustee for
                  the benefit of the Noteholders and the Note Purchaser.

                           (xxxviii) COMPUTER INFORMATION. The computer
                  diskette, computer tape or other electronic transmission made
                  available by the Seller to the Purchaser on each Funding Date
                  is, as of the related Cutoff Date, complete and accurate and
                  includes a description of the same Receivables described in
                  Schedule A to the related Assignment.

                           (xxxix) TFC, MFN, SEAWEST RECEIVABLES. None of the
                  Related Receivables was originated by TFC, MFN, SeaWest or any
                  of their respective Subsidiaries.

                           (xl) REMAINING PRINCIPAL BALANCE. As of the related
                  Cutoff Date, each Related Receivable has a remaining Principal
                  Balance of at least $3,000 and the Principal Balance of each
                  Receivable set forth in Schedule A to the related Assignment
                  is true and accurate in all respects.

                           (xli) NET ACQUISITION FEE. The average Net
                  Acquisition Fee is less than 3.0%.

                           (xlii) DELIVERY OF RECEIVABLE FILES. A complete
                  Receivable File (other than, if applicable, a certificate of
                  title missing from the related Receivable File as described in
                  SECTION 3.4(B)) with respect to each Receivable has been,
                  prior to the Funding Date, delivered to the Trustee at the
                  location listed in SCHEDULE B hereof.

                           (xliii) FULL AMOUNT ADVANCED. The full amount of each
                  Receivable has been advanced to each Obligor, and there are no
                  requirements for future advances thereunder.

                           (xliv) ILLINOIS RECEIVABLES. (a) The Seller does not
                  own a substantial interest in the business of a Dealer within
                  the meaning of Illinois Sales Finance Agency Act Rules and
                  Regulations, Section 160.230(1) and (b) with respect to each
                  Receivable originated in the State of Illinois, (i) the

                                       11
<PAGE>

                  printed or typed portion of the related Form of Receivable
                  complies with the requirements of 815 ILCS 375/3(b) and (ii)
                  the Seller has not, and for so long as such Receivable is
                  outstanding shall not, place or cause to be placed on the
                  related Financed Vehicle any collateral protection insurance
                  in violation of 815 ILCS 180/10.

                           (xlv) CALIFORNIA RECEIVABLES. Each Receivable
                  originated in the State of California has been, and at all
                  times during the term of the Sale and Servicing Agreement will
                  be, serviced by the Servicer in compliance with Cal. Civil
                  Code ss. 2981, et seq.

SECTION 3.2. REPURCHASE UPON BREACH; SECTION 341 MEETING(a) . The Seller, the
Servicer, any Noteholder or the Trustee, as the case may be, shall inform the
other parties to this Agreement promptly, in writing, upon the discovery of any
breach of the Seller's representations and warranties made pursuant to SECTION
3.1 with respect to a Receivable (without regard to any limitations therein as
to the Seller's knowledge). Unless the breach shall have been cured within
thirty (30) days of the discovery thereof by the Trustee or receipt by the
Trustee of notice from the Seller or the Servicer of such breach, the Seller
shall repurchase such Receivable. In consideration of the purchase of any
Receivable, the Seller shall remit the Purchase Amount, in the manner specified
in SECTION 5.6. The sole remedies of the Purchaser, the Trustee, the Note
Purchaser or the Noteholders with respect to any Receivables as to which a
breach of representations and warranties pursuant to SECTION 3.1 has occurred
shall be to enforce the Seller's obligation to purchase such Receivables and the
indemnity provided by SECTION 8.3(E) . Upon receipt of the Purchase Amount in
respect of any Defective Receivables and written instructions from the Servicer,
the Trustee shall release to the Seller or its designee the related Receivable
File and shall execute and deliver all reasonable instruments of transfer or
assignment, without recourse, as are prepared by the Seller and delivered to the
Trustee and necessary to vest in the Seller or such designee title to such
Defective Receivables. The parties hereto hereby acknowledge that the Note
Purchaser and the Majority Noteholders shall each have the right to enforce
directly against the Seller the Seller's repurchase and indemnity obligations
pursuant to this SECTION 3.2.

         (b) If (i) the Insolvency Event related to a Section 341 Meeting has
not been discharged by the bankruptcy court or other similar court presiding
over such Insolvency Event within 90 days of the conveyance of the related
Receivable by the Seller to the Purchaser pursuant to SECTION 2.1(A), or (ii)
the Obligor on any Receivable that was the subject of a Section 341 Meeting
shall not have made the first two payments due on such Receivable, in each case,
the Seller shall repurchase such Receivable as of the last day of such next
Accrual Period.

SECTION 3.3. CUSTODY OF RECEIVABLE FILES.

         (a) In connection with each sale, transfer and assignment of
Receivables and related Other Conveyed Property to the Purchaser pursuant to
this Agreement and each Assignment, and each pledge thereof by the Purchaser to
the Trustee pursuant to the Indenture, the Trustee shall act as custodian of the
following documents or instruments in its possession which shall be delivered to
the Trustee on or before the Closing Date or the related Funding Date in
accordance with SECTION 3.4 (with respect to each Receivable):

                  (i) The fully executed original of the Receivable (together
         with any agreements modifying or assigning the Receivable, including
         without limitation any extension agreements); and

                  (ii) The original certificate of title in the name of the
         Obligor with a notation on such certificate of title evidencing
         Seller's security interest therein or such documents that the Seller
         shall keep on file, in accordance with its customary procedures,
         evidencing the security interest of the Seller in the Financed Vehicle
         or, if not yet received, a copy of the application therefor showing the
         Seller as secured party, or a dealer guarantee of title.

                                       12
<PAGE>

                  (b) Upon payment in full of any Receivable, the Servicer will
         notify the Trustee pursuant to a certificate of a Servicing Officer in
         the form of EXHIBIT C and shall request delivery of the Receivable and
         Receivable File to the Servicer.

SECTION 3.4. Acceptance of Receivable Files by Trustee; Missing Certificates of
Title (a) In connection with any Funding Date, the Seller shall cause to be
delivered to the Trustee the Receivable Files for the Related Receivables to be
purchased on such Funding Date not less than four Business Days prior to the
related Funding Date. The Trustee declares that it will hold and will continue
to hold such files and any amendments, replacements or supplements thereto and
all Other Conveyed Property as Trustee, custodian, agent and bailee in trust for
the use and benefit of the Noteholders and the Note Purchaser. The Trustee shall
within three Business Days after receipt of such files, execute and deliver to
the Noteholders and the Note Purchaser, a receipt substantially in the form of
EXHIBIT B hereto (a "TRUST RECEIPT") for the Receivable Files received by the
Trustee. By its delivery of a Trust Receipt, the Trustee shall be deemed to have
(a) acknowledged receipt of the files (or the Receivables) which the Seller has
represented are and contain the Receivable Files for the Related Receivables to
be purchased by the Purchaser on the related Funding Date as indicated on
Schedule A to the Addition Notice, (b) reviewed such files or Receivables and
(c) determined that it has received the items referred to in SECTION 3.3(A)(I)
and (II) for each Related Receivable identified on Schedule A to the Addition
Notice, except, in each case, as may otherwise be noted in Schedule I to the
Trust Receipt. Unless such defect noted on Schedule I of the related Trust
Receipt with respect to such Receivable to be transferred on the related Funding
Date shall have been cured by the Seller or waived by the Note Purchaser, in its
sole discretion, and the Trustee shall have executed a Trust Receipt reflecting
that such Receivable is no longer on Schedule I thereto prior to 11 a.m. New
York time on the related Funding Date, the Purchaser shall not purchase such
Receivable from the Seller on such Funding Date. The Trustee shall return to or
otherwise handle the files at the direction of the Seller and any file unrelated
to a Receivable identified in Schedule A to the related Addition Notice (it
being understood that the Trustee's obligation to review the contents of any
Receivable File shall be limited as set forth in the preceding sentence).

         (b) The Trustee shall make a list of Receivables for which an
application for a certificate of title but not an original certificate of title
or, with respect to Receivables that finance a vehicle in the States listed in
ANNEX B, other evidence of title issued by the applicable Department of Motor -
Vehicles or similar authority in such States, is included in the Receivable File
as of the date of its review of the Receivable Files and deliver a copy of such
list to the Servicer, the Noteholders and the Note Purchaser. On the date which
is 180 days following the related Funding Date, and monthly thereafter, the
Trustee shall inform the Seller, the Purchaser, the Noteholders and the Note
Purchaser of any Receivable for which the related Receivable File on such date
does not include an original certificate of title or, with respect to Financed
Vehicles in the States listed in ANNEX B, other - evidence of title issued by
the applicable Department of Motor Vehicles or similar authority in such States,
and the Seller shall repurchase any such Receivable as of the last Business Day
of the Accrual Period in which the expiration of such 180 days occurs. In
consideration of the purchase of the Receivable, the Seller shall remit the
Purchase Amount for such Receivable, in the manner specified in SECTION 5.6.
Upon receipt of the Purchase Amount for a Receivable and written instructions
from the -- Servicer, the Trustee shall release to the Seller or its designee
the related Receivable File and shall execute and deliver all reasonable
instruments of transfer or assignment, without recourse, as are prepared by the
Seller and delivered to the Trustee and are necessary to vest in the Seller or
such designee title to the Receivable.

         (c) For those Receivable Files that do not contain an original
certificate of title or, with respect to Receivables that finance a vehicle in
the States listed in ANNEX B, other evidence of title issued by the applicable
Department of Motor Vehicles or similar authority in such States, upon receipt
of such original title documents, the Seller shall promptly deliver or cause to
be delivered to the Trustee such original title documents to the Trustee to
place in the applicable Receivable File.

SECTION 3.5. ACCESS TO RECEIVABLE FILES. The Trustee shall permit the Servicer,
the Note Purchaser and the Noteholders access to the Receivable Files at all
reasonable times during the Trustee's normal business hours. The Trustee shall,
within two Business Days of the request of the Servicer, the Note Purchaser or
any Noteholder, execute such documents and instruments as are prepared by the
Servicer, the Note Purchaser or such Noteholder and delivered to the Trustee, as
the Servicer, the Note Purchaser or such Noteholder deems necessary to permit
the Servicer, in accordance with its customary servicing procedures, to enforce

                                       13
<PAGE>

the Receivable on behalf of the Purchaser and any related insurance policies
covering the Obligor, the Receivable or Financed Vehicle so long as such
execution in the Trustee's sole discretion does not conflict with the Indenture
or any other Basic Document and will not cause it undue risk or liability. The
Trustee shall not release any document from any Receivable File unless it
receives a release request signed by a Servicing Officer in the form of EXHIBIT
C hereto (the "RELEASE REQUEST"); PROVIDED, HOWEVER, if a Servicer Termination
Event or Event of Default shall have occurred and is continuing, the Trustee
shall not release any such Receivable File to the Servicer without the prior
written consent of the Note Purchaser. Such Release Request shall obligate the
Servicer to return such document(s) to the Trustee when the need therefor no
longer exists unless the Receivable shall be liquidated, in which case, the
Servicer shall certify in the Release Request that all amounts required to be
deposited in the Collection Account with respect to such Receivable have been so
deposited. Each Release Request delivered to the Trustee pursuant to this
SECTION 3.5 shall be forwarded by the Servicer to the Note Purchaser
electronically or by facsimile within one (1) Business Day of delivery to the
Trustee together with a list of all Receivables to be released by the Trustee
pursuant to such Release Request.

SECTION 3.6. TRUSTEE TO OBTAIN FIDELITY INSURANCE. The Trustee shall maintain a
fidelity bond in the form and amount as is customary for entities acting as a
trustee of funds and documents in respect of consumer contracts on behalf of
institutional investors.

SECTION 3.7. TRUSTEE TO MAINTAIN SECURE FACILITIES. The Trustee shall maintain
or cause to be maintained continuous custody of the Receivable Files in secure
and fire resistant facilities segregated from any other Receivables of the
Seller, the Purchaser or any of their Affiliates in accordance with customary
standards for such custody.

                                   ARTICLE IV
                                   ----------

                   ADMINISTRATION AND SERVICING OF RECEIVABLES
                   -------------------------------------------

SECTION 4.1. DUTIES OF THE SERVICER. The Servicer, as agent for the Purchaser,
the Note Purchaser and the Noteholders shall manage, service, administer and
make collections on the Receivables with reasonable care, using that degree of
skill and attention customary and usual for institutions which service motor
vehicle retail installment sale contracts similar to the Receivables and, to the
extent more exacting, that the Servicer exercises with respect to all comparable
automotive receivables that it services for itself or others. In performing such
duties, the Servicer shall comply with its current servicing policies and
procedures, as such servicing policies and procedures may be amended from time
to time, so long as such amendments will not materially adversely affect the
interests of the Note Purchaser or the Noteholders, or otherwise with the prior
written consent of the Note Purchaser and the Noteholders (which consent shall
not be unreasonably withheld), and notice of such amendments is given to the
Note Purchaser and the Noteholders prior to the effectiveness thereof. Without
limiting the generality of the foregoing, and subject to the servicing standards
set forth in this Agreement including, without limitation, the restrictions set
forth in SECTION 4.6, the Servicer is authorized and empowered by the Purchaser
to execute and deliver, on behalf of itself, the Purchaser, the Note Purchaser
or the Noteholders, any and all instruments of satisfaction or cancellation, or
partial or full release or discharge, and all other comparable instruments, with
respect to such Receivables or to the Financed Vehicles securing such
Receivables and/or the certificates of title or, with respect to Financed
Vehicles in the States listed in ANNEX B, other evidence of title issued by the
applicable Department of Motor Vehicles or similar authority in such States with
respect to such Financed Vehicles. If the Servicer shall commence a legal
proceeding to enforce a Receivable, the Purchaser shall thereupon be deemed to
have automatically assigned, solely for the purpose of collection, such
Receivable to the Servicer. If in any enforcement suit or legal proceeding it
shall be held that the Servicer may not enforce a Receivable on the ground that
it shall not be a real party in interest or a holder entitled to enforce such
Receivable, the Purchaser shall, at the Servicer's expense and direction, take
steps to enforce such Receivable, including bringing suit in its name or the
name of the Note Purchaser or the Noteholders. The Servicer shall prepare and
furnish, and the Trustee shall execute, any powers of attorney and other
documents reasonably necessary or appropriate to enable the Servicer to carry
out its servicing and administrative duties hereunder.

                                       14
<PAGE>

SECTION 4.2. COLLECTION OF RECEIVABLE PAYMENTS; MODIFICATIONS OF RECEIVABLES;
LOCKBOX AGREEMENTS.

         (a) Consistent with the standards, policies and procedures required by
this Agreement, the Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the Receivables as and
when the same shall become due and shall follow such collection procedures as it
follows with respect to all comparable automotive receivables that it services
for itself or others; PROVIDED, HOWEVER, that promptly after the Closing Date
(or the related Funding Date, as applicable), but in no event more than 30 days
thereafter, the Servicer shall notify each Obligor to make all payments with
respect to the Receivables to the Post-Office Box. The Servicer will provide
each Obligor with a monthly statement in order to notify such Obligors to make
payments directly to the Post-Office Box. The Servicer shall allocate
collections between principal and interest in accordance with the customary
servicing procedures it follows with respect to all comparable automotive
receivables that it services for itself or others and in accordance with the
terms of this Agreement. The Servicer, for so long as the Seller is the
Servicer, may in accordance with the Servicer's Servicing Guidelines grant
extensions on a Receivable; PROVIDED, HOWEVER, that the Servicer may not grant
more than one (1) extension per calendar year with respect to a Receivable or
grant an extension with respect to a Receivable for more than one (1) calendar
month or grant more than four (4) extensions in the aggregate with respect to a
Receivable without the prior written consent of the Note Purchaser. If the
Servicer is not the Seller or the Backup Servicer, the Servicer may not make any
extension on a Receivable without the prior written consent of the Note
Purchaser (which consent shall not unreasonably be withheld). The Servicer may
in its discretion waive any prepayment charge, late payment charge or any other
similar fees that may be collected in the ordinary course of servicing a
Receivable. Notwithstanding anything to the contrary contained herein, the
Servicer shall not agree to any alteration of the interest rate on any
Receivable or of the amount of any Scheduled Receivable Payment on Receivables,
other than to the extent that such alteration is required by applicable law.

         (b) The Servicer shall establish the Lockbox Account in the name of the
Purchaser for the benefit of the Trustee for the further benefit of the
Noteholders and the Note Purchaser. Pursuant to the Lockbox Agreement, the
Trustee has authorized the Servicer to direct dispositions of funds on deposit
in the Lockbox Account to the Collection Account (but not to any other account),
and no other Person, except the Lockbox Processor and the Trustee, has authority
to direct disposition of funds on deposit in the Lockbox Account. However, the
Lockbox Agreement shall provide that Lockbox Bank will comply with instructions
originated by the Trustee relating to the disposition of the funds in the
Lockbox Account without further consent by the Seller, the Servicer or the
Purchaser. The Trustee shall have no liability or responsibility with respect to
the Lockbox Processor's directions or activities as set forth in the preceding
sentence. The Lockbox Account shall be established pursuant to and maintained in
accordance with the Lockbox Agreement and shall be a demand deposit account
initially established and maintained with Wells Fargo Bank, National
Association, or at the request of the the Note Purchaser an Eligible Account
satisfying clause (i) of the definition thereof; PROVIDED, HOWEVER, that the
Trustee shall give the Servicer prior written notice of any change made at the
request of the Note Purchaser in the location of the Lockbox Account. The
Servicer shall establish and maintain the Post-Office Box at a United States
Post Office Branch in the name of the Purchaser for the benefit of the Trustee
for the further benefit of the Noteholders and the Note Purchaser.

         (c) Notwithstanding any Lockbox Agreement, or any of the provisions of
this Agreement relating to the Lockbox Agreement, the Servicer shall remain
obligated and liable to the Purchaser, the Trustee, the Note Purchaser and the
Noteholders for servicing and administering the Receivables and the Other
Conveyed Property in accordance with the provisions of this Agreement without
diminution of such obligation or liability by virtue thereof.

         (d) In the event the Seller shall for any reason no longer be acting as
the Servicer hereunder, the Backup Servicer or another successor Servicer shall
thereupon assume all of the rights and obligations of the outgoing Servicer
under the Lockbox Agreement. In such event, the Backup Servicer or such other
successor Servicer shall be deemed to have assumed all of the outgoing
Servicer's interest therein and to have replaced the outgoing Servicer as a
party to the Lockbox Agreement to the same extent as if such Lockbox Agreement
had been assigned to the Backup Servicer or such other successor Servicer,
except that the outgoing Servicer shall not thereby be relieved of any liability
or obligations on the part of the outgoing Servicer to the Lockbox Bank under

                                       15
<PAGE>

such Lockbox Agreement. The outgoing Servicer shall, upon request of the Note
Purchaser or the Trustee, but at the expense of the outgoing Servicer, deliver
to the Backup Servicer or such other successor Servicer all documents and
records relating to the Lockbox Agreement and an accounting of amounts collected
and held by the Lockbox Bank and otherwise use its best efforts to effect the
orderly and efficient assignment of any Lockbox Agreement to the Backup Servicer
or such other successor Servicer. In the event that the Note Purchaser shall
elect to change the identity of the Lockbox Bank, the Servicer, at its expense,
shall cause the Lockbox Bank to deliver, at the direction of the Note Purchaser,
to the Trustee or a successor Lockbox Bank, all documents and records relating
to the Receivables and all amounts held (or thereafter received) by the Lockbox
Bank (together with an accounting of such amounts) and shall otherwise use its
best efforts to effect the orderly and efficient transfer of the Lockbox
arrangements.

         (e) On each Business Day, pursuant to the Lockbox Agreement, the
Lockbox Processor will transfer any payments from Obligors received in the
Post-Office Box to the Lockbox Account. Within two (2) Business Days of receipt
of funds into the Lockbox Account, the Servicer shall cause the Lockbox Bank to
transfer cleared funds from the Lockbox Account to the Collection Account. In
addition, the Servicer shall remit all payments by or on behalf of the Obligors
received by the Servicer with respect to the Receivables (other than Purchased
Receivables) and all Net Liquidation Proceeds no later than two (2) Business
Days following receipt directly (without deposit into any intervening account)
into the Lockbox Account or the Collection Account. The Servicer shall not
commingle its assets and funds with those on deposit in the Lockbox Account.

SECTION 4.3. REALIZATION UPON RECEIVABLES. On behalf of the Purchaser, the
Trustee, the Note Purchaser and the Noteholders, the Servicer shall use its best
efforts, consistent with the servicing procedures set forth herein, to repossess
or otherwise convert the ownership of the Financed Vehicle securing any
Receivable as to which the Servicer shall have determined eventual payment in
full is unlikely. The Servicer shall commence efforts to repossess or otherwise
convert the ownership of a Financed Vehicle on or prior to the date that an
Obligor has failed to make more than 90% of a Scheduled Receivable Payment
thereon in excess of $10 for 120 days or more; PROVIDED, HOWEVER, that the
Servicer may elect not to commence such efforts within such time period if in
its good faith judgment it determines either that it would be impracticable to
do so or that the proceeds ultimately recoverable with respect to such
Receivable would be increased by forbearance. The Servicer shall follow such
customary and usual practices and procedures as it shall deem necessary or
advisable in its servicing of automotive receivables, consistent with the
standards of care set forth in Section 4.2, which may include reasonable efforts
to realize upon any recourse to Dealers and selling the Financed Vehicle at
public or private sale. The foregoing shall be subject to the provision that, in
any case in which the Financed Vehicle shall have suffered damage, the Servicer
shall not expend funds in connection with the repair or the repossession of such
Financed Vehicle unless it shall determine in its discretion exercised in good
faith that such repair and/or repossession will increase the proceeds ultimately
recoverable with respect to such Receivable by an amount greater than the amount
of such expenses.

SECTION 4.4. INSURANCE.

         (a) The Servicer, in accordance with the servicing procedures and
standards set forth herein, shall require that (i) each Obligor shall have
obtained insurance covering the Financed Vehicle, as of the date of the
execution of the Receivable, insuring against loss and damage due to fire,
theft, transportation, collision and other risks generally covered by
comprehensive and collision coverage and each Receivable requires the Obligor to
maintain such physical loss and damage insurance naming the Seller and its
successors and assigns as an additional insured, (ii) each Receivable that
finances the cost of premiums for credit life and credit accident and health
insurance is covered by an insurance policy or certificate naming the Seller as
policyholder (creditor) and (iii) as to each Receivable that finances the cost
of an extended service contract, the respective Financed Vehicle which secures
the Receivable is covered by an extended service contract (each, a "RECEIVABLES
INSURANCE POLICY").

         (b) To the extent applicable, the Servicer shall not take any action
which would result in noncoverage under any Receivables Insurance Policy which,
but for the actions of the Servicer, would have been covered thereunder. The
Servicer, on behalf of the Purchaser, the Note Purchaser and the Noteholders,
shall take such reasonable action as shall be necessary to permit recovery under

                                       16
<PAGE>

each Receivables Insurance Policy. Any amounts collected by the Servicer under
any Receivables Insurance Policy, including, without limitation, proceeds
thereof, shall be deposited in the Collection Account within one (1) Business
Day of receipt.

SECTION 4.5. MAINTENANCE OF SECURITY INTERESTS IN VEHICLES.

         (a) Consistent with the policies and procedures required by this
Agreement, the Servicer shall take such steps on behalf of the Purchaser, the
Note Purchaser and the Noteholders as are necessary to maintain perfection of
the security interest created by each Receivable in the related Financed
Vehicle, including but not limited to obtaining the authorization or execution
by the Obligors and the recording, registering, filing, re-recording,
re-registering and refiling of all security agreements, financing statements and
continuation statements or instruments as are necessary to maintain the security
interest granted by the Obligors under the respective Receivables. The Trustee
hereby authorizes the Servicer, and the Servicer agrees, to take any and all
steps necessary to re-perfect or continue the perfection of such security
interest on behalf of the Purchaser and Trustee for the benefit of the
Noteholders and Note Purchaser as necessary because of the relocation of a
Financed Vehicle or for any other reason. In the event that the assignment of a
Receivable to the Purchaser, and the pledge thereof by the Purchaser to the
Trustee is insufficient, without a notation on the related Financed Vehicle's
certificate of title, or without fulfilling any additional administrative
requirements under the laws of the state in which the Financed Vehicle is
located, to perfect a security interest in the related Financed Vehicle in favor
of the Trustee for the benefit of the Noteholders and the Note Purchaser, each
of the Trustee and the Seller hereby agrees that the Seller's designation as the
secured party on the certificate of title is in respect of the Seller's capacity
as Servicer as agent of the Trustee for the benefit of the Noteholders and the
Note Purchaser.

         (b) Upon the occurrence and continuance of a Servicer Termination
Event, the Trustee, and the Servicer shall take or cause to be taken such action
as may, in the opinion of counsel to the Trustee, which opinion shall be an
expense of the Servicer and shall not be an expense of the Trustee, be necessary
to perfect or re-perfect the security interests in the Financed Vehicles
securing the Receivables in the name of the Trustee on behalf of the Noteholders
and the Note Purchaser by amending the title documents of such Financed Vehicles
or by such other reasonable means as may, in the opinion of counsel to the
Trustee, which opinion shall be an expense of the Servicer and shall not be an
expense of the Trustee, be necessary or prudent.

         (c) The Seller hereby agrees to pay all expenses related to such
perfection or re-perfection in accordance with clauses (a) and (b) above and to
take all action necessary therefor. In addition, the Note Purchaser or the
Trustee may instruct the Servicer to take or cause to be taken, and the Servicer
shall take or cause to be taken, such action as may, in the judgment of the
Trustee or the Note Purchaser, be necessary to perfect or re-perfect the
security interest in the Financed Vehicles underlying the Receivables in the
name of the Trustee on behalf of the Noteholders and the Note Purchaser,
including by amending the title documents of such Financed Vehicles or by such
other reasonable means as may, in the judgment of the Trustee or the Note
Purchaser, be necessary or prudent; PROVIDED, HOWEVER, that if the Note
Purchaser or the Trustee requests that the title documents be amended prior to
the occurrence of a Servicer Termination Event, the Servicer shall carry out
such action only to the extent that the out-of-pocket expenses of the Servicer
shall be reimbursed by the Note Purchaser or the Noteholders, respectively.

SECTION 4.6. ADDITIONAL COVENANTS OF SERVICER.

         (a) The Servicer shall not release the Financed Vehicle securing any
Receivable from the security interest granted by such Receivable in whole or in
part except in the event of payment in full by the Obligor thereunder or
repossession or other liquidation of the Financed Vehicle, nor shall the
Servicer impair the rights of the Noteholders, the Note Purchaser or the Trustee
in such Receivables, nor shall the Servicer amend or otherwise modify a
Receivable, except as permitted in accordance with SECTION 4.2.

                                       17
<PAGE>

         (b) The Servicer shall obtain and/or maintain all necessary licenses,
approvals, authorizations, orders or other actions of any person, corporation or
other organization, or of any court, governmental agency or body or official,
required in connection with the execution, delivery and performance of this
Agreement and the other Basic Documents.

         (c) The Servicer shall not make any material changes to its collection
policies unless the Note Purchaser expressly consents in writing prior to such
changes (which consent shall not be unreasonably withheld).

         (d) The Servicer shall provide written notice to the Noteholders and
the Note Purchaser of any default, event of default, trigger event or servicer
termination event under any other warehouse financing facility or securitization
that has occurred and which default, event of default, trigger event or servicer
termination shall not have been waived or otherwise cured within the applicable
cure period.

         (e) The Servicer shall reimburse the Note Purchaser and the Noteholders
for any and all fees or expenses that the Note Purchaser or such Noteholders, as
applicable, pay to a bank arising out of a return of payments from the Purchaser
or the Seller deposited for collection by or for the benefit of the Note
Purchaser or the Noteholders, as applicable.

         (f) The Servicer will not (i) create, incur or suffer to exist, or
agree to create, incur or suffer to exist, or consent to cause or permit in the
future (upon the happening of a contingency or otherwise) the creation,
incurrence or existence of any lien, security interest, charge, pledge, equity,
encumbrance or restriction on transferability of the Receivables and the Other
Conveyed Property except (x) for the lien in favor of the Trustee for the
benefit of the Noteholders and the Note Purchaser and the restrictions on
transferability imposed by this Agreement or any other Basic Document or (y)
with respect to any portion of the Receivables and the Other Conveyed Property
released in a manner permitted by the Basic Documents from the lien in favor of
the Trustee for the benefit of the Noteholders and the Note Purchaser, or (ii)
sign or file under the UCC of any jurisdiction any financing statement which
names the Seller, the Servicer or the Purchaser as a debtor, or sign any
security agreement authorizing any secured party thereunder to file such
financing statement, with respect to the Receivables and Other Conveyed
Property, except in each case any such instrument solely securing the rights and
preserving the lien of the Trustee for the benefit of the Noteholders and the
Note Purchaser.

SECTION 4.7. PURCHASE OF RECEIVABLES UPON BREACH OF COVENANT. Upon discovery by
any of the Servicer, the Purchaser, the Trustee, the Note Purchaser or any
Noteholder of a breach of any of the covenants of the Servicer set forth in
SECTION 4.2(A), 4.4, 4.5 or 4.6, the party discovering such breach shall give
prompt written notice to the others; PROVIDED, HOWEVER, that the failure to give
any such notice shall not affect any obligation of the Servicer under this
SECTION 4.7. Unless the breach shall have been cured by the last day of the next
Accrual Period following such discovery, the Servicer shall purchase any
Receivable materially and adversely affected by such breach. In consideration of
the purchase of such Receivable, the Servicer shall remit the Purchase Amount
for such Receivable in the manner specified in SECTION 5.6. The sole remedy of
the Trustee, the Purchaser, the Note Purchaser or the Noteholders hereunder with
respect to a breach of SECTION 4.2(A), 4.4, 4.5 or 4.6 shall be to require the
Servicer to repurchase Receivables pursuant to this SECTION 4.7; PROVIDED,
however, that the Servicer shall indemnify the Trustee, the Backup Servicer, the
Purchaser, the Note Purchaser and the Noteholders 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
breach.

SECTION 4.8. SERVICING FEE. The "SERVICING FEE" for each Settlement Date shall
be equal (a) to the sum of the following amount calculated for each day in the
related Accrual Period: the product of (i) the Servicing Fee Percentage and (ii)
the aggregate Principal Balance of the Eligible Receivables minus the Excess
Concentration Amount, if any, on such day and (iii) 1/360. The Servicing Fee
shall also include all late fees, prepayment charges and other administrative
fees or similar charges allowed by applicable law with respect to Receivables,
collected (from whatever source) on the Receivables. If the Backup Servicer
becomes the successor Servicer, the "Servicing Fee" payable to the Backup
Servicer as successor Servicer shall be determined in accordance with the
Servicing Assumption Agreement.

                                       18
<PAGE>

SECTION 4.9. SERVICER'S CERTIFICATE. No later than 12:00 noon New York City time
on each Determination Date, the Servicer shall deliver (in computer-readable
format reasonably acceptable to each such Person) to the Trustee, the Note
Purchaser, the Backup Servicer and the Purchaser, a certificate substantially in
the form of EXHIBIT A hereto (a "SERVICER'S CERTIFICATE") containing among other
things, (i) all information necessary to enable the Trustee to make the
distributions required by SECTION 5.7, (ii) all information necessary for the
Trustee to send statements to the Noteholders and the Note Purchaser pursuant to
SECTION 5.8(B) and 5.9, (iii) a listing of all Purchased Receivables purchased
as of the related Accounting Date, identifying the Receivables so purchased,
(iv) the calculation of the Borrowing Base as of the last day of the related
Accrual Period and (v) all information necessary to enable the Backup Servicer
to verify the information specified in SECTION 4.14(B) and to complete the
accounting required by SECTION 5.9. In addition to the information set forth in
the preceding sentence, each Servicer's Certificate shall also contain the
following information: (a) whether a Servicer Termination Event or any other
Funding Termination Event has occurred; (b) the Servicer Delinquency Ratio as of
the end of the Related Accrual Period; (c) the Servicer Loss Ratio as of such
Determination Date; (d) so long as the Servicer is CPS, a certification that the
Servicer is in compliance with the financial covenants contained in Sections
10.1(i), (j) and (k) of this Agreement; and (e) such other information
reasonably requested by the Note Purchaser and any Noteholder. The Servicer
shall deliver to the Trustee, the Noteholders, the Note Purchaser, the Backup
Servicer and the Purchaser a hard copy (which may be a facsimile) of any such
Servicer's Certificate upon request of such Person.

SECTION 4.10. ANNUAL STATEMENT AS TO COMPLIANCE, NOTICE OF SERVICER TERMINATION
EVENT.

         (a) The Servicer shall deliver to the Purchaser, to the Trustee, the
Note Purchaser and to the Noteholders and the Backup Servicer, on or before
March 31 of each year beginning March 31, 2006, an Officer's Certificate, dated
as of December 31 of the preceding year, stating that (i) a review of the
activities of the Servicer during the preceding 12-month period (or, in the case
of the first such certificate, the period from the initial Cutoff Date to
December 31, 2005) and of its performance under this Agreement has been made
under such officer's supervision and (ii) to the best of such officer's
knowledge, based on such review, the Servicer has fulfilled all its obligations
under this Agreement throughout such year (or, in the case of the first such
certificate, such shorter period), or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof.

         (b) The Servicer shall deliver to the Trustee, the Noteholders, the
Note Purchaser and the Backup Servicer, promptly after having obtained knowledge
thereof, but in no event later than two (2) Business Days thereafter, written
notice in an Officer's Certificate of any event which with the giving of notice
or lapse of time, or both, would become a Servicer Termination Event under
SECTION 10.1.

SECTION 4.11. INDEPENDENT ACCOUNTANTS' REPORTS. The Servicer shall cause a firm
of nationally recognized independent certified public accountants (the
"INDEPENDENT ACCOUNTANTS"), who may also render other services to the Servicer
or to the Purchaser, to deliver to the Trustee, the Backup Servicer, the Note
Purchaser and the Noteholders, on or before April 30 of each year beginning
April 30, 2006, a report dated as of December 31 of the preceding year in form
and substance reasonably acceptable to the Note Purchaser (the "ACCOUNTANTS'
REPORT") and reviewing the Servicer's activities during the preceding 12-month
period (or, in the case of the first such report, the period from the Cutoff
Date with respect to Receivables transferred to the Purchaser on the initial
Funding Date to December 31, 2005), addressed to the Board of Directors of the
Servicer, to the Trustee, the Backup Servicer, the Note Purchaser and the
Noteholders, to the effect that such firm has examined the financial statements
of the Servicer and issued its report therefor and that such examination (1) was
made in accordance with generally accepted auditing standards, and accordingly
included such tests of the accounting records and such other auditing procedures
as such firm considered necessary in the circumstances; (2) included tests
relating to auto loans serviced for others in accordance with the requirements
of the Uniform Single Attestation Program for Mortgage Bankers (the "PROGRAM"),
to the extent the procedure in the Program are applicable to the servicing
obligations set forth in this Agreement; (3) included an examination of the
delinquency and loss statistics relating to the Servicer's portfolio of
automobile and light truck installment sale contracts; and (4) except as
described in the report, disclosed no exceptions or errors in the records
relating to automobile and light truck loans serviced for others that, in the
firm's opinion, paragraph four of the Program requires such firm to report. The
accountant's report shall further state that (1) a review in accordance with
agreed upon procedures was made of two randomly selected Servicer's
Certificates; (2) except as disclosed in the report, no exceptions or errors in
the Servicer's Certificates were found; and (3) the delinquency and loss
information relating to the Receivables and the stated amount of Liquidated
Receivables, if any, contained in the Servicer's Certificates were found to be
accurate. In the event such firm requires the Trustee and/or the Backup Servicer
to agree to the procedures performed by such firm, the Servicer shall direct the
Trustee and/or the Backup Servicer, as applicable, in writing to so agree; it
being understood and agreed that the Trustee and/or the Backup Servicer will

                                       19
<PAGE>

deliver such letter of agreement in conclusive reliance upon the direction of
the Servicer, and neither the Trustee nor the Backup Servicer makes any
independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures. The Report will also indicate that the firm is independent of the
Servicer within the meaning of the Code of Professional Ethics of the American
Institute of Certified Public Accountants.

SECTION 4.12. INDEPENDENT ACCOUNTANTS' REVIEW OF RECEIVABLE FILES. Commencing on
December 31, 2005 and, thereafter on each March 31, June 30, September 30 and
December 31, to the extent that the Invested Amount on any day in the calendar
quarter then ending was greater than $10 million (or such other dates as the
Note Purchaser may determine in its reasonable discretion from time to time by
prior written notice to the Seller, the Servicer and the Trustee), the Seller at
its own expense shall cause Independent Accountants reasonably acceptable to the
Note Purchaser to conduct a post-funding review of the Seller's compliance with
its stated underwriting policies and verify certain characteristics of the
Receivables as of each Funding Date. The Independent Accountants shall within
ten Business Days complete such physical inspection and limited review and
execute and deliver to Seller, the Servicer, the Trustee, the Note Purchaser and
the Noteholders a report summarizing the findings. If such review reveals, in
the Note Purchaser's reasonable opinion, an unsatisfactory number of exceptions,
the Note Purchaser, in its reasonable discretion, may require a full review of a
larger sample of the Receivables by the Independent Accountants at the expense
of the Seller.

SECTION 4.13. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
RECEIVABLES. The Servicer shall provide to representatives of the Trustee, the
Backup Servicer, the Note Purchaser and the Noteholders reasonable access to the
documentation regarding the Receivables. In each case, such access shall be
afforded without charge but only upon reasonable request and during normal
business hours. Nothing in this Section shall derogate from the obligation of
the Servicer to observe any applicable law prohibiting disclosure of information
regarding the Obligors, and the failure of the Servicer to provide access as
provided in this Section as a result of such obligation shall not constitute a
breach of this Section.

SECTION 4.14. VERIFICATION OF SERVICER'S CERTIFICATE.

         (a) Concurrently with the delivery by the Servicer of the Servicer's
Certificate each month, the Servicer will deliver to the Trustee and the Backup
Servicer and the Note Purchaser a computer diskette (or other electronic
transmission) in a format acceptable to the Trustee and the Backup Servicer
containing information with respect to the Receivables as of the close of
business on the last day of the preceding Accrual Period which information is
necessary for preparation of the Servicer's Certificate. The Backup Servicer
shall use such computer diskette (or other electronic transmission) to verify
certain information specified in SECTION 4.14(B) contained in the Servicer's
Certificate delivered by the Servicer, and the Backup Servicer shall notify the
Servicer, the Note Purchaser and the Noteholders of any discrepancies on or
before the second Business Day following the Determination Date. In the event
that the Backup Servicer reports any discrepancies, the Servicer and the Backup
Servicer shall attempt to reconcile such discrepancies by the related Settlement
Date, but in the absence of a reconciliation, the Servicer's Certificate shall
control for the purpose of calculations and distributions pursuant to clauses
(i) through (vii) of Section 5.7(a) hereof with respect to the related
Settlement Date. No payments shall be made to the Issuer pursuant to, clause
(viii) of Section 5.7(a) hereof until any discrepancies shall have been
reconciled. In the event that the Backup Servicer and the Servicer are unable to
reconcile discrepancies with respect to a Servicer's Certificate by the related
Settlement Date, the Backup Servicer shall notify the Note Purchaser and the
Noteholders thereof in writing and the Servicer shall cause a firm of nationally
recognized, independent certified public accountants, at the Servicer's expense,
to audit the Servicer's Certificate and, prior to the fifth day of the following
calendar month, reconcile the discrepancies. The effect, if any, of such
reconciliation shall be reflected in the Servicer's Certificate for such next
succeeding Determination Date. Other than the duties specifically set forth in
this Agreement, the Backup Servicer shall have no obligations hereunder,
including, without limitation, to supervise, verify, monitor or administer the
performance of the Servicer. The Backup Servicer shall have no liability for any
actions taken or omitted by the Servicer. The duties and obligations of the
Backup Servicer shall be determined solely by the express provisions of this
Agreement and no implied covenants or obligations shall be read into this
Agreement against the Backup Servicer.

                                       20
<PAGE>

         (b) The Backup Servicer shall review each Servicer's Certificate
delivered pursuant to Section 4.14(a) and shall:

                  (i) confirm that such Servicer's Certificate is complete on
         its face;

                  (ii) load the computer diskette (which shall be in a format
         acceptable to the Backup Servicer) received from the Servicer pursuant
         to SECTION 4.14(A) hereof, confirm that such computer diskette is in a
         readable form and calculate and confirm the aggregate of the Principal
         Balances of the Receivables for the most recent Settlement Date; and

                  (iii) confirm that Available Funds, the Noteholder's Principal
         Distributable Amount, the Noteholder's Interest Distributable Amount,
         the Servicing Fee, the Backup Servicing Fee, the Trustee Fee, the
         Servicer Delinquency Ratio and the Servicer Loss Ratio in the
         Servicer's Certificate are accurate based solely on the recalculation
         of the Servicer's Certificate.

         (c) Within 30 days of the Closing Date and within thirty (30) days of
the effective date of any renewal of the Term of the Commitment pursuant to
Section 2.05 of the Note Purchase Agreement, the Backup Servicer will cause an
affiliate of the Backup Servicer to data map to its servicing system all
servicing/loan file information, including all relevant borrower contact
information such as address and phone numbers as well as loan balance and
payment information, including comment histories and collection notes. On or
before the fifth calendar day of each month, the Servicer will provide to an
affiliate of the Backup Servicer and the Note Purchaser an electronic
transmission of all servicing/loan information, including all relevant borrower
contact information such as address and phone numbers as well as loan balance
and payment information, including comment histories and collection notes, and
the Backup Servicer will cause such affiliate to review each file to ensure that
it is in readable form and verify that the data balances conform to the trial
balance reports received from the Servicer. Additionally, the Backup Servicer
shall cause such affiliate to store each such file.

SECTION 4.15. RETENTION AND TERMINATION OF SERVICER. The Servicer hereby
covenants and agrees to act as such under this Agreement for an initial term
commencing on the Closing Date and ending on November 30, 2005, which term may
be extended by the Note Purchaser for successive monthly terms pursuant to
written instructions delivered by the Note Purchaser to the Servicer and the
Trustee (or, at the discretion of the Note Purchaser exercised pursuant to
revocable written standing instructions from time to time to the Servicer and
the Trustee, for any specified number of terms greater than one), until such
time as the Notes and all other Secured Obligations have been paid in full (each
such notice, including each notice pursuant to standing instructions, which
shall be deemed delivered at the end of successive terms for so long as such
instructions are in effect, a "SERVICER EXTENSION NOTICE"). The Servicer hereby
agrees that, upon its receipt of any such Servicer Extension Notice or other
extension of its term as Servicer, the Servicer shall become bound, for the
duration of the term covered by such Servicer Extension Notice or for the
monthly term, as applicable, to continue as the Servicer subject to and in
accordance with the other provisions of this Agreement. The Trustee agrees that
if as of the twentieth day prior to the last day of any term of the Servicer,
the Trustee shall not have received any Servicer Extension Notice as of such
date, the Trustee shall, within five days thereafter, give written notice of
such non-receipt to the Note Purchaser and the Servicer and the Servicer's term
shall not be extended unless a Servicer Extension Notice is received on or
before the last day of such term.

SECTION 4.16. ERRORS AND OMISSIONS POLICY AND FIDELITY BOND. The Servicer shall
maintain an errors and omissions insurance policy and a fidelity bond in such
form and amount as is customary for comparable servicers engaged in the business
of servicing motor vehicle receivables.

                                       21
<PAGE>

                                   ARTICLE V
                                   ---------

              ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDER
              -----------------------------------------------------

SECTION 5.1. ESTABLISHMENT OF PLEDGED ACCOUNTS.

         (a) The Trustee, on behalf of the Noteholders and the Note Purchaser,
shall establish and maintain in its own name an Eligible Account (the
"COLLECTION ACCOUNT"), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Trustee on behalf of the
Noteholders and the Note Purchaser. The Collection Account shall initially be
established with the Trustee.

         (b) The Trustee, on behalf of the Noteholders and the Note Purchaser,
shall establish and maintain in its own name an Eligible Account (the "NOTE
DISTRIBUTION ACCOUNT"), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Trustee on behalf of the
Noteholders and the Note Purchaser. The Note Distribution Account shall
initially be established with the Trustee.

         (c) Funds on deposit in the Collection Account and the Note
Distribution Account (collectively, the "PLEDGED ACCOUNTS") shall be invested by
the Trustee (or any custodian with respect to funds on deposit in any such
account) in Eligible Investments selected in writing by the Servicer or, after
the resignation or termination of CPS as Servicer, by the Note Purchaser
(pursuant to standing instructions or otherwise). All such Eligible Investments
shall be held by or on behalf of the Trustee for the benefit of the Noteholders
and the Note Purchaser. Other than as permitted by the Note Purchaser, funds on
deposit in any Pledged Account shall be invested in Eligible Investments that
will mature so that such funds will be available at the close of business on the
Business Day immediately preceding the following Settlement Date. Funds
deposited in a Pledged Account on the day immediately preceding a Settlement
Date upon the maturity of any Eligible Investments are not required to be
invested overnight. All Eligible Investments will be held to maturity. (d) All
investment earnings of moneys deposited in the Pledged Accounts shall be
deposited (or caused to be deposited) by the Trustee in the Collection Account
for distribution pursuant to SECTION 5.7(A), and any loss resulting from such
investments shall be charged to such account. The -- Servicer will not direct
the Trustee to make any investment of any funds held in any of the Pledged
Accounts unless the security interest granted and perfected in such account will
continue to be perfected in such investment, in either case without any further
action by any Person, and, in connection with any direction to the Trustee to
make any such investment, if requested by the Trustee, the Servicer shall
deliver to the Trustee an Opinion of Counsel, acceptable to the Trustee, to such
effect.

         (e) The Trustee shall not in any way be held liable by reason of any
insufficiency in any of the Pledged Accounts resulting from any loss on any
Eligible Investment included therein except for losses attributable to the
Trustee's negligence or bad faith or its failure to make payments on such
Eligible Investments issued by the Trustee, in its commercial capacity as
principal obligor and not as trustee, in accordance with their terms.

         (f) If (i) the Servicer or the Note Purchaser, as applicable, shall
have failed to give investment directions for any funds on deposit in the
Pledged Accounts to the Trustee by 1:00 p.m. Eastern Time (or such other time as
may be agreed by the Purchaser and Trustee) on any Business Day; or (ii) an
Event of Default shall have occurred and be continuing with respect to the Notes
but the Notes shall not have been declared due and payable, or, if the Notes
shall have been declared due and payable following an Event of Default, amounts
collected or receivable from the Receivables and the Other Conveyed Property are
being applied as if there had not been such a declaration; then the Trustee
shall, to the fullest extent practicable, invest and reinvest funds in the
Pledged Accounts in an Eligible Investment described in PARAGRAPH (A) OR (F) of
the definition thereof.

                                       22
<PAGE>

         (g) The Trustee shall possess all right, title and interest in all
funds on deposit from time to time in the Pledged Accounts and in all proceeds
thereof (including all Investment Earnings on the Pledged Accounts) and all such
funds, investments, proceeds and income shall be part of Other Conveyed Property
and the Collateral. Except as otherwise provided herein, the Pledged Accounts
shall be under the sole dominion and control of the Trustee for the benefit of
the Noteholders and the Note Purchaser. If at any time any of the Pledged
Accounts ceases to be an Eligible Account, the Trustee with the consent of the
Note Purchaser shall within five Business Days establish a new Pledged Account
as an Eligible Account and shall transfer any cash and/or any investments from
the Pledged Account that is no longer an Eligible Account to such new Pledged
Account. The Trustee shall promptly notify the Servicer, the Note Purchaser and
the Noteholders of any change in the location of any of the aforementioned
accounts. In connection with the foregoing, the Trustee agrees that, in the
event that any of the Pledged Accounts are not accounts with the Trustee, the
Trustee shall notify the Servicer, the Note Purchaser and the Noteholders in
writing promptly upon any of such Pledged Accounts ceasing to be an Eligible
Account.

         (h) Notwithstanding anything to the contrary herein or in any other
document relating to a Trust Account, the "securities intermediary's
jurisdiction" (within the meaning of Section 8-110 of the UCC) or the "bank's
jurisdiction" (with the meaning of 9-304 of the UCC) as applicable, with respect
to each Pledged Account shall be the State of New York.

         (i) With respect to the Pledged Account Property, the Trustee agrees
that:

                  (i) any Pledged Account Property that is held in deposit
         accounts shall be held solely in an Eligible Account; and, except as
         otherwise provided herein, each such Eligible Account shall be subject
         to the exclusive custody and control of the Trustee and the Trustee
         shall have sole signature authority with respect thereto; and

                  (ii) any Pledged Account Property shall be delivered to the
         Trustee in accordance with the definition of "DELIVERY".

                  (iii) the Servicer shall have the power, revocable by the Note
         Purchaser to instruct the Trustee to make withdrawals and payments from
         the Pledged Accounts for the purpose of permitting the Servicer and the
         Trustee to carry out their respective duties hereunder.

SECTION 5.2. ESTABLISHMENT OF DEPOSIT ACCOUNT

         The Trustee shall establish and maintain the Deposit Account in the
name of CPS. The Deposit Account shall be established with the Trustee as the
Deposit Account Bank (as defined in the Account Control Agreement) and governed
and maintained in accordance with the provisions of the Account Control
Agreement. All distributions made by the Issuer and Seller to CPS in respect of
CPS's equity interest in the Issuer shall be deposited by the Issuer directly
into the Deposit Account. Amounts on deposit in the Deposit Account shall be
invested by the Trustee (or any custodian with respect to funds on deposit in
any such account) in Eligible Investments selected in writing by CPS (pursuant
to standing instructions or otherwise). All investment earnings of moneys
deposited in the Deposit Account shall be held in the Deposit Account until
withdrawn by CPS (unless otherwise prohibited pursuant to Section 2 of the
Account Control Agreement), and any loss resulting from such investments shall
be charged to the Deposit Account

SECTION 5.3. CERTAIN REIMBURSEMENTS TO THE SERVICER. The Servicer will be
entitled to be reimbursed from amounts on deposit in the Collection Account with
respect to an Accrual Period for amounts previously deposited in the Collection
Account but later determined by the Servicer to have resulted from mistaken
deposits or postings or checks returned for insufficient funds. The amount to be
reimbursed hereunder shall be paid to the Servicer on the related Settlement
Date pursuant to SECTION 5.7(A)(II) upon certification by the Servicer of such
amounts prior to such Settlement Date and the provision of such information to
the Trustee and the Note Purchaser prior to such Settlement Date as may be
necessary in the opinion of the Note Purchaser to verify the accuracy of such
certification; provided, however, that the Servicer must provide such
certification within three months of it becoming aware of such mistaken deposit,
posting or returned check. In the event that the Note Purchaser has not received
evidence satisfactory to it of the Servicer's entitlement to reimbursement
pursuant to this Section prior to such Settlement Date, the Note Purchaser shall
give the Trustee notice to such effect, following receipt of which the Trustee
shall not make a distribution to the Servicer in respect of such amount pursuant
to SECTION 5.7, or if prior thereto the Servicer has been reimbursed pursuant to
SECTION 5.7, the Trustee shall withhold such amounts from amounts otherwise
distributable to the Servicer on the next succeeding Settlement Date.

                                       23
<PAGE>

SECTION 5.4. APPLICATION OF COLLECTIONS.All collections for each Accrual Period
shall be applied by the Servicer as follows:

         With respect to each Receivable (other than a Purchased Receivable),
payments by or on behalf of the Obligor shall be applied to interest and
principal in accordance with the Simple Interest Method.

SECTION 5.5. [RESERVED].

SECTION 5.6. ADDITIONAL DEPOSITS. The Servicer, the Issuer, the Purchaser or the
Seller, as the case may be, shall each deposit or cause to be deposited in the
Collection Account (i) the Purchase Amount with respect to any Purchased
Receivable on the date of purchase of such Receivable and (ii) any amounts due
the Trustee, Noteholders, the Note Purchaser, the Backup Servicer, the Purchaser
(in each case, to the extent not paid directly thereto) in respect of any
indemnification obligation of the Servicer, the Issuer, the Purchaser or the
Seller under the Basic Documents.

SECTION 5.7. DISTRIBUTIONS.

         (a) On each Settlement Date prior to the acceleration of the Notes
following an Event of Default, the Trustee (based on the information contained
in the Servicer's Certificate delivered on the related Determination Date) shall
make the following distributions in the following order of priority from amounts
on deposit in the Collection Account:

                  (i) to the Backup Servicer and the Trustee, as applicable, pro
         rata from Available Funds, in respect of the Backup Servicing Fee (so
         long as the Backup Servicer is not acting as successor Servicer), the
         Trustee Fee, reasonable expenses incurred in connection with
         transitioning the servicing to the Backup Servicer and all other
         reasonable out-of-pocket expenses thereof (including counsel fees and
         expenses) and all unpaid Backup Servicing Fees (so long as the Backup
         Servicer is not acting as successor Servicer), Trustee Fees, reasonable
         expenses incurred in connection with transitioning the servicing to the
         Backup Servicer and all other reasonable out-of-pocket expenses
         (including counsel fees and expenses) from prior Accrual Periods;
         PROVIDED, HOWEVER, that expenses payable to each of the Backup Servicer
         and Trustee pursuant to this clause (i), excluding amounts paid to the
         Backup Servicer in respect of transition expenses, shall be limited to
         a total of $25,000 per annum (calculated from November 15, 2005 to
         November 14, 2006, and each succeeding 364-day period to the extent the
         Term is extended pursuant to the Note Purchase Agreement); PROVIDED,
         FURTHER, that the amount of transition expenses distributed to the
         Backup Servicer during the term of this Agreement pursuant to this
         clause (i) shall in no case exceed $50,000 in the aggregate;

                  (ii) to the Servicer, from Available Funds, in respect of the
         Servicing Fee and all unpaid Servicing Fees from prior Accrual Periods
         and all reimbursements to which the Servicer is entitled pursuant to
         SECTION 5.3;

                  (iii) to the Note Distribution Account, from Available Funds,
         the Noteholders' Interest Distributable Amount for such Accrual Period;

                  (iv) to the Note Distribution Account, from Available Funds,
         the Noteholders' Principal Distributable Amount for such Accrual
         Period;

                  (v) to any successor Servicer, from Available Funds, its
         servicing fees in excess of the Servicing Fee and, to the extent not
         previously paid by the predecessor Servicer pursuant to this Agreement,
         reasonable transition expenses (up to a maximum of $50,000 in the
         aggregate over the term of this Agreement) incurred in becoming the
         successor Servicer; and

                                       24
<PAGE>

                  (vi) to the Backup Servicer and the Trustee, as applicable,
         pro rata, from Available Funds, in respect of reasonable out-of-pocket
         expenses thereof (including counsel fees and expenses) and reasonable
         out-of-pocket expenses (including counsel fees and expenses) from prior
         Accrual Periods to the extent not paid thereto pursuant to SECTION
         5.7(A)(I) above; and

                  (vii) to the Note Distribution Account, from Available Funds,
         any Margin Call, the Commitment Fee, the Minimum Placement Fee and all
         other fees, expenses, indemnity payments (to the extent not paid
         directly) and all other amounts owing to the Note Purchaser and/or the
         Noteholders under the Basic Documents; and

                  (viii) to the Issuer, the remaining Available Funds, if any;
         provided that no Available Funds shall be paid to the Issuer pursuant
         to this priority (viii) until (x) any amounts owed to the Noteholders
         and the Note Purchaser pursuant to Sections 3.03, 3.04 and 3.05 of the
         Note Purchase Agreement have been paid in full and (y) any
         discrepancies in the Servicer's Certificate shall have been reconciled
         pursuant to Section 4.14(a) hereof.

         (b) Following an acceleration of the Notes after an Event of Default,
any money or property that the Trustee collects pursuant to Article V of the
Indenture shall be paid pursuant to Section 5.6(a) of the Indenture; provided,
however, that Available Funds shall be applied in the order of priority
specified in SECTION 5.7(A) above.

         (c) In the event that the Collection Account is maintained with an
institution other than the Trustee, the Servicer shall instruct and cause such
institution to make all deposits and distributions pursuant to SECTION 5.7(A) on
the related Settlement Date.

SECTION 5.8. NOTE DISTRIBUTION ACCOUNT.

         (a) On each Settlement Date (based solely on the information contained
in the Servicer's Certificate), the Trustee shall distribute all amounts on
deposit in the Note Distribution Account to the Noteholders in respect of the
Notes to the extent of amounts due and unpaid on the Notes for principal and
interest, and to the Note Purchaser in respect of other amounts due and owing
under the Basic Documents, in the following amounts and in the following order
of priority:

                  (i) to the Noteholders, the Noteholders' Interest
         Distributable Amount; PROVIDED that if there are not sufficient funds
         in the Note Distribution Account to pay the entire amount then due on
         the Note, the amount in the Note Distribution Account shall be applied
         to the payment of such interest pro rata among the Holders of the
         Notes;

                  (ii) to the Noteholders, in reduction of the Invested Amount,
         the Noteholders' Principal Distributable Amount to pay principal on the
         Notes until the outstanding principal amount of the Notes have been
         reduced to zero; PROVIDED that if there are not sufficient funds in the
         Note Distribution Account to pay the entire amount then due on the
         Notes, the amount in the Note Distribution Account shall be applied to
         the payment of such principal pro rata among the Holders of the Notes;

                  (iii) to the Noteholders, in reduction of the Invested Amount,
         in an amount necessary to cover any Margin Call;

                  (iv) to the Note Purchaser, the Commitment Fee;

                  (v) to the Note Purchaser, if such Settlement Date occurs on
         or after the Minimum Placement Fee Payment Date, the Minimum Placement
         Fee; and

                                       25
<PAGE>

                  (vi) sequentially, to the Note Purchaser and the Noteholders,
         in that order, any other amounts due the Note Purchaser and the
         Noteholders, respectively, pursuant to any of the Basic Documents.

         (b) On each Settlement Date, the Trustee shall provide or make
available electronically (or, upon written request, by first class mail or
facsimile) to the Noteholders and the Note Purchaser the statement or statements
provided to the Trustee by the Servicer pursuant to SECTION 5.9 hereof on such
Settlement Date; PROVIDED HOWEVER, the Trustee shall have no obligation to
provide such information described in this SECTION 5.8(B) until it has received
the requisite information from the Servicer.

SECTION 5.9. STATEMENTS TO NOTEHOLDERS. (a) On the Determination Date (in
accordance with SECTION 4.9), the Servicer shall provide to the Trustee, the
Note Purchaser and the Noteholders on the related Record Date a copy of the
Servicer's Certificate setting forth at least the following information as to
the Notes to the extent applicable in the form attached as hereto EXHIBIT A:

                  (i) the amount of such distribution allocable to principal of
         the Notes;

                  (ii) the amount of such distribution allocable to interest on
         or with respect to the Notes;

                  (iii) the aggregate of the Principal Balances of the
         Receivables as of the close of business on the last day of the
         preceding Accrual Period;

                  (iv) the aggregate outstanding principal amount of the Notes;

                  (v) the amount of the Servicing Fee paid to the Servicer with
         respect to the related Accrual Period, and the amount of any unpaid
         Servicing Fees and the change in such amount from the prior Settlement
         Date;

                  (vi) (A) the amount of each of the Backup Servicing Fee and
         the Trustee Fee paid to the Backup Servicer and the Trustee as
         applicable, with respect to the related Accrual Period, (B) the amount
         of any unpaid Backup Servicing Fees and Trustee Fees and the change in
         such amounts from the prior Settlement Date, (C) the amount of all
         expenses paid to the Trustee and the Backup Servicer, with respect to
         the related Accrual Period, and (D) the difference between the maximum
         per annum amount payable to the Trustee and Backup Servicer in respect
         of expenses (other than servicing transition expenses) as set forth in
         Section 5.7(a)(i) and the amount paid to the Backup Servicer and
         Trustee year-to-date (to and including the related Settlement Date) in
         respect of such expenses;

                  (vii) the Noteholders' Interest Carryover Shortfall and the
         Noteholders' Principal Carryover Shortfall, if any;

                  (viii) the number of Receivables and the aggregate gross
         amount scheduled to be paid thereon, including unearned finance and
         other charges, for which the related Obligors are delinquent in making
         Scheduled Receivable Payments for (a) 31 to 45 days and (d) 46 days or
         more, in each case as of the last day of the related Accrual Period;

                  (ix) the amount of aggregate Realized Losses, if any, for the
         related Accrual Period;

                  (x) the number of, and the aggregate Purchase Amounts for,
         Receivables, if any, that were repurchased during the related Interest
         Period and summary information as to losses and delinquencies with
         respect to the Receivables as of the end of the related Accrual Period;

                  (xi) the cumulative amount of Realized Losses from the initial
         Cutoff Date to the last day of the related Accrual Period; and

                                       26
<PAGE>

                  (xii) the Servicer Delinquency Ratio as of the end of the
         related Accrual Period and the Servicer Loss Ratio as of the related
         Determination Date.

         (b) Within 60 days after the end of each calendar year, commencing
February 28, 2006, the Servicer shall deliver to the Trustee, and the Trustee
shall, provided it has received the necessary information from the Servicer,
promptly thereafter furnish to each Noteholder (a) a report (prepared by the
Servicer) as to the aggregate of the amounts reported pursuant to subclauses
(i), (ii), (v) and (vi) of SECTION 5.9(A) for such preceding calendar year, and
(b) such information as may be reasonably requested by such Noteholder or
required by the Code and regulations thereunder, to enable such Noteholder to
prepare its Federal and State income tax returns. The obligation of the Trustee
set forth in this paragraph shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Servicer to
such Noteholder pursuant to any requirements of the Code.

         (c) The Trustee may make available to the Note Purchaser and the
Noteholders via the Trustee's Internet Website, all statements described herein
and, with the consent or at the direction of the Seller, such other information
regarding the Notes and/or the Receivables as the Trustee may have in its
possession, but only with the use of a password provided by the Trustee. The
Trustee will make no representation or warranties as to the accuracy or
completeness of such documents accurately posted and will assume no
responsibility therefor. The Trustee's Internet Website shall be initially
located at WWW.CTSLINK.COM or at such other address as shall be specified by the
Trustee from time to time in writing to the Noteholders and the Note Purchaser.
In connection with providing access to the Trustee's Internet Website, the
Trustee may require registration and the acceptance of a disclaimer. The Trustee
shall not be liable for the dissemination of information in accordance with this
Agreement.

SECTION 5.10. DIVIDEND OF INELIGIBLE RECEIVABLES. The Issuer may on the last day
of the month in which any Receivables are sold into a securitization transaction
distribute any Ineligible Receivables to the Seller as a dividend, free of the
deemed security interest referred to in Section 2.2 hereof; PROVIDED THAT there
is no Borrowing Base Deficiency immediately after such dividend.

                                   ARTICLE VI
                                   ----------

                                   [RESERVED]
                                   ----------

                                  ARTICLE VII
                                  -----------

                                  THE PURCHASER
                                  -------------

SECTION 7.1. REPRESENTATIONS OF PURCHASER. The Purchaser makes the following
representations on which the Noteholders shall be deemed to have relied in
purchasing the Notes and the Note Purchaser shall have been deemed to have
relied in making each Advance. The representations speak as of the execution and
delivery of this Agreement and as of each Funding Date, and shall survive the
sale of the Receivables to the Purchaser and the pledge thereof to the Trustee
for the benefit of the Note Purchaser and the Noteholders pursuant to the
Indenture.

         (a) ORGANIZATION AND GOOD STANDING. The Purchaser has been duly formed
and is validly existing as a limited liability company solely under the laws of
the state of Delaware and is 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 pledge the Receivables and the Other Conveyed
Property pledged to the Trustee and to enter into and perform its other
obligations under this Agreement and each other Basic Document to which it is a
party.

         (b) DUE QUALIFICATION. The Purchaser is duly qualified to do business
as a foreign limited liability company in good standing, and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business (including, without limitation,
the purchase of Receivables from CPS, the pledge of Collateral to the Trustee
for the benefit of the Note Purchaser and the Noteholders pursuant to the
Indenture, and the performance of its other obligations under this Agreement and
each other Basic Document) shall require such qualifications.

                                       27
<PAGE>

         (c) POWER AND AUTHORITY. The Purchaser has the power (corporate and
other) and authority, and has all material government licenses, authorizations,
consents and approvals necessary to own its assets and carry on its business as
now being conducted, to execute and deliver this Agreement and the other Basic
Documents to which it is a party and to carry out its terms and their terms,
respectively; the Purchaser has full power and authority to pledge the
Collateral to be pledged to the Trustee for the benefit of the Note Purchaser
and the Noteholders by it pursuant to the Indenture and has duly authorized such
pledge to the Trustee by all necessary corporate action; and the execution,
delivery and performance of this Agreement and the Basic Documents to which the
Purchaser is a party have been duly authorized by the Purchaser by all necessary
action.

         (d) VALID SALE. BINDING OBLIGATIONS. This Agreement effects a valid
sale of the Receivables and the Other Conveyed Property, enforceable against the
Seller and creditors of and purchasers from the Seller, the Indenture
constitutes a valid pledge of the Collateral which constitutes a first priority
perfected security interest in the Collateral in favor of the Trustee for the
benefit of the Noteholders and the Note Purchaser, enforceable against the
Issuer and creditors of and purchasers from the Issuer, and this Agreement and
the other Basic Documents to which the Purchaser is a party, when duly executed
and delivered, shall constitute legal, valid and binding obligations of the
Purchaser 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.

         (e) NO VIOLATION. The consummation of the transactions contemplated by
this Agreement and the other Basic Documents and the fulfillment of the terms of
this Agreement and the other Basic 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 Limited Liability Company
Agreement of the Purchaser, or any indenture, agreement, mortgage, deed of trust
or other instrument to which the Purchaser 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 the Basic Documents, or violate any law, order,
rule, regulation, ordinance or directive of any Governmental Authority
applicable to the Purchaser of any court or of any federal or state regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Purchaser or any of its properties.

         (f) NO PROCEEDINGS. There are no proceedings or investigations pending
or, to the Purchaser's knowledge, threatened against the Purchaser, before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over the Purchaser or its properties (A)
asserting the invalidity of this Agreement, the Notes or any of the Basic
Documents, (B) seeking to prevent the issuance of the Notes or the consummation
of any of the transactions contemplated by this Agreement or any of the Basic
Documents, (C) seeking any determination or ruling that might materially and
adversely affect the performance by the Purchaser of its obligations under, or
the validity or enforceability of, this Agreement or any of the Basic Documents
or otherwise have a Material Adverse Effect or result in a Material Adverse
Change in respect of the Purchaser, or (D) relating to the Purchaser or the
Collateral and which might adversely affect the federal or State income, excise,
franchise or similar tax attributes of the Notes.

         (g) NO CONSENTS. The Purchaser is not required to obtain the consent of
any other Person and no consent, approval, authorization or order of or
declaration or filing with any governmental authority is required for conduct of
the Purchaser's business, the issuance or sale of the Notes or the consummation
of the other transactions contemplated by this Agreement and the other Basic
Documents, except such as have been duly made or obtained or as may be required
by the Basic Documents.

                                       28
<PAGE>

         (h) TAX RETURNS. The Purchaser has filed all federal and state tax
returns that are required to be filed and paid all taxes, including any
assessments received by it, to the extent that such taxes have become due. Any
taxes, fees and other governmental charges payable by the Purchaser in
connection with consummation of the transactions contemplated by this Agreement
and the other Basic Documents to which the Purchaser is a party and the
fulfillment of the terms of this Agreement and the other Basic Documents to
which the Purchaser is a party have been paid or shall have been paid at or
prior to the Closing Date and as of each Funding Date.

         (i) OTHER OBLIGATIONS. The Purchaser is not in default in the
performance, observance or fulfillment of any obligation, covenant or condition
in any of the Basic Documents to which it is a party or in any other agreement
or instrument to which it is a party or by which it is bound the result of which
would have a Material Adverse Effect or result in a Material Adverse Change.

         (j) CHIEF EXECUTIVE OFFICE. The chief executive office of the Purchaser
is at 16355 Laguna Canyon Road, Irvine, CA 92618.

         (k) CERTIFICATE, STATEMENTS AND REPORTS. The officer's certificates,
statements, reports and other documents prepared by the Purchaser and furnished
by the Purchaser to the Trustee, the Note Purchaser or the Noteholders pursuant
to this Agreement or any other Basic Document to which it is a party, or
otherwise in connection with the transactions contemplated hereby or thereby,
when taken as a whole, do not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements contained herein
or therein not misleading.

         (l) LEGAL COUNSEL, ETC. The Purchaser consulted with its own legal
counsel and independent accountants to the extent it deems necessary regarding
the tax, accounting and regulatory consequences of the transactions contemplated
hereby, the Purchaser is not participating in such transactions in reliance on
any representations of any other party, their affiliates, or their counsel with
respect to tax, accounting, regulatory or any other matters.

         (m) NO DEFAULT. The Purchaser is not in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in, and is not otherwise in default under (i) any law or statute
applicable to it, including, without limitation, any Consumer Law, (ii) any
judgment, decree, writ, injunction, order, award or other action of any court or
governmental authority or arbitrator or any order, rule or regulation of any
federal, state, county, municipal or other governmental or public authority or
agency having or asserting jurisdiction over it or any of its properties or
(iii) (x) any indebtedness or any instrument or agreement under or pursuant to
which any such indebtedness has been, or could be, issued or incurred or (y) any
other instrument or agreement to which it is a party or by which it is bound or
any of its properties is affected, including, without limitation, the Basic
Documents, that either individually or in the aggregate, (A) would result in a
Material Adverse Change with respect to the Purchaser, or in any impairment of
the right or ability of the Purchaser to carry on its business substantially as
now conducted or (B) would result in a Material Adverse Effect.

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

         (o) COMPLIANCE WITH LAWS. The Purchaser has complied and will comply in
all material respects with all applicable laws, rules, regulations, judgments,
agreements, decrees and orders with respect to its business and properties.

                                       29
<PAGE>

                                  ARTICLE VIII
                                  ------------

                                   THE SELLER
                                   ----------

SECTION 8.1. REPRESENTATIONS OF SELLER. The Seller makes the following
representations on which the Purchaser shall be deemed to have relied in
acquiring the Receivables, the Noteholders shall be deemed to have relied in
purchasing the Notes and the Note Purchaser shall have been deemed to have
relied in making each Advance. The representations speak as of the execution and
delivery of this Agreement, as of the Closing Date and as of each Funding Date,
and shall survive the sale of the Receivables to the Purchaser and the pledge
thereof by the Purchaser to the Trustee for the benefit of the Noteholders and
the Note Purchaser pursuant to the Indenture.

         (a) ORGANIZATION AND GOOD STANDING. The Seller has been duly organized
and is validly existing as a corporation solely under the laws of the State of
California and is in good standing under the laws of the State of California,
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 Receivables and the Other Conveyed Property
transferred to the Purchaser and to perform its other obligations under this
Agreement or any other Basic Documents to which it is a party.

         (b) DUE QUALIFICATION. The Seller 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 property or
the conduct of its business (including, without limitation, the origination or
purchase of motor vehicle retail installment sales contracts, the sale of the
Receivables to the Purchaser hereunder, the servicing of the Receivables as
required by this Agreement, and its other obligations hereunder and under the
other Basic Documents) requires or shall require such qualification except where
the failure to so qualify or obtain such licenses or consents would result in a
Material Adverse Effect or a Material Adverse Change.

         (c) POWER AND AUTHORITY. The Seller has the power (corporate and other)
and authority, and has all material government licenses, authorizations,
consents and approvals necessary to own its assets and carry on its business as
now being conducted, to execute and deliver this Agreement and the other Basic
Documents to which it is a party and to carry out its terms and their terms,
respectively; the Seller has full power and authority to sell and assign the
Receivables and the Other Conveyed Property to be sold and assigned to and
deposited with the Purchaser by it and has duly authorized such sale and
assignment to the Purchaser by all necessary corporate action; and the
execution, delivery and performance of this Agreement and the Basic Documents to
which the Seller is a party have been duly authorized by the Seller by all
necessary corporate action.

         (d) VALID SALE; BINDING OBLIGATIONS. This Agreement effects a valid
sale, transfer and assignment of the Receivables and the Other Conveyed Property
to the Purchaser, enforceable against the Seller and creditors of and purchasers
from the Seller; and this Agreement and the Basic Documents to which the Seller
is a party, when duly executed and delivered, shall constitute legal, valid and
binding obligations of the Seller 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.

         (e) NO VIOLATION. The consummation of the transactions contemplated by
this Agreement and the Basic Documents and the fulfillment of the terms of this
Agreement and the Basic Documents does 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
by-laws of the Seller, or any indenture, agreement, mortgage, deed of trust or
other instrument to which the Seller 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 the Basic Documents, or violate any law, order,
rule, regulation, ordinance or directive of any Governmental Authority
applicable to the Seller of any court or of any federal or state regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Seller or any of its properties.

                                       30
<PAGE>

         (f) NO PROCEEDINGS. There are no proceedings or investigations pending
or, to the Seller's knowledge, threatened against the Seller, before any court,
regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over the Seller or its properties (A)
asserting the invalidity of this Agreement or any of the Basic Documents, (B)
seeking to prevent the issuance of the Notes or the consummation of any of the
transactions contemplated by this Agreement or any of the Basic Documents, or
(C) seeking any determination or ruling that might materially and adversely
affect the performance by the Seller of its obligations under, or the validity
or enforceability of, this Agreement or any of the other Basic Documents or
otherwise have a Material Adverse Effect or result in a Material Adverse Change
in respect of the Seller or (D) relating to the Seller or the Receivables or
Other Conveyed Property and which might adversely affect the federal or State
income, excise, franchise or similar tax attributes of the Notes.

         (g) NO CONSENTS. No consent, approval, authorization or order of or
declaration or filing with any governmental authority is required for the
conduct of the Seller's business, the issuance or sale of the Notes or the
consummation of the other transactions contemplated by this Agreement and the
Basic Documents, except such as have been duly made or obtained.

         (h) FINANCIAL CONDITION. The Seller has a positive net worth and is
able to and does pay its liabilities as they mature. The Seller is not in
default under any obligation to pay money to any Person except for matters being
disputed in good faith which do not involve an obligation of the Seller on a
promissory note. The Seller will not use the proceeds from the transactions
contemplated by the Basic Documents to give any preference to any creditor or
class of creditors, and such transactions will not leave the Seller with
remaining assets which are unreasonably small compared to its ongoing
operations.

         (i) FRAUDULENT CONVEYANCE. The Seller is not selling the Receivables to
the Purchaser with any intent to hinder, delay or defraud any of its creditors;
the Seller will not be rendered insolvent as a result of the sale of the
Receivables to the Purchaser.

         (j) TAX RETURNS. The Seller has filed all material federal and state
tax returns that are required to be filed and paid all material taxes, including
any assessments received by it, to the extent that such taxes have become due
(other than taxes, the amount or validity of which are currently being contested
in good faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of the Seller). Any taxes,
fees and other governmental charges payable by the Seller in connection with
consummation of the transactions contemplated by this Agreement and the other
Basic Documents to which the Seller is a party and the fulfillment of the terms
of this Agreement and the other Basic Documents to which the Seller is a party
have been paid or shall have been paid as of each Funding Date.

         (k) CHIEF EXECUTIVE OFFICE. The Seller has more than one place of
business, and the chief executive office of the Seller is at 16355 Laguna Canyon
Road, Irvine, CA 92618 and its organizational number is 1682500.

         (l) CERTIFICATE, STATEMENTS AND REPORTS. The officer's certificates,
statements, reports and other documents prepared by Seller and furnished by
Seller to the Purchaser, the Trustee, the Note Purchaser or the Noteholders
pursuant to this Agreement or any other Basic Document to which it is a party,
or otherwise in connection with the transactions contemplated hereby or thereby,
when taken as a whole, do not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements contained herein
or therein not misleading.

         (m) LEGAL COUNSEL, ETC. Seller consulted with its own legal counsel and
independent accountants to the extent it deems necessary regarding the tax,
accounting and regulatory consequences of the transactions contemplated hereby,
Seller is not participating in such transactions in reliance on any
representations of any other party, their affiliates, or their counsel with
respect to tax, accounting and regulatory matters.

                                       31
<PAGE>

         (n) NO MATERIAL ADVERSE CHANGE AS OF SEPTEMBER 30, 2005. No Material
Adverse Change has occurred with respect to the Seller since the end of the
quarter reported on in the Seller's Form 10-Q filed with the Commission on
November 3, 2005.

         (o) NO DEFAULT. The Seller is not in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in, and is not otherwise in default under (i) any law or statute
applicable to it, including, without limitation, any Consumer Law, (ii) any
judgment, decree, writ, injunction, order, award or other action of any court or
governmental authority or arbitrator or any order, rule or regulation of any
federal, state, county, municipal or other governmental or public authority or
agency having or asserting jurisdiction over it or any of its properties or
(iii) (x) any indebtedness or any instrument or agreement under or pursuant to
which any such indebtedness has been, or could be, issued or incurred or (y) any
other instrument or agreement to which it is a party or by which it is bound or
any of its properties is affected, including, without limitation, the Basic
Documents, that either individually or in the aggregate, (A) would result in a
Material Adverse Change with respect to the Seller, or in any impairment of the
right or ability of the Seller to carry on its business substantially as now
conducted or (B) would result in a Material Adverse Effect.

         (p) OTHER OBLIGATIONS. The Seller is not in default in the performance,
observance or fulfillment of any obligation, covenant or condition in any of the
Basic Documents to which it is a party or in any agreement or instrument to
which it is a party or by which it is bound the result of which would have a
Material Adverse Effect or result in a Material Adverse Change.

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

         (r) COMPLIANCE WITH LAWS. The Seller has complied and will comply in
all material respects with all applicable laws, rules, regulations, judgments,
agreements, decrees and orders with respect to its business and properties.

SECTION 8.2. ADDITIONAL COVENANTS OF THE SELLER.

         (a) SALE. The Seller agrees to treat the conveyances hereunder as
financings for tax and accounting purposes and as sales for all other purposes
(including without limitation legal and bankruptcy purposes) on all relevant
books, records, tax returns, financial statements and other applicable
documents.

         (b) NON-PETITION. In the event of any breach of a representation and
warranty made by the Purchaser hereunder, the Seller 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 the Notes issued by the Issuer and all other amounts due and owing to
the Noteholders and the Note Purchaser pursuant to the Basic Documents have been
paid in full. The Purchaser and the Seller agree that damages will not be an
adequate remedy for breach of this covenant and that this covenant may be
specifically enforced by the Purchaser, by the Trustee on behalf of the
Noteholders and the Note Purchaser, by the Note Purchaser or by the Majority
Noteholders.

                                       32
<PAGE>

         (c) CHANGES TO SELLER'S CONTRACT PURCHASE GUIDELINES. The Seller
covenants that it will not make any material credit-related changes to the
Seller's Contract Purchase Guidelines without the prior written consent of the
Note Purchaser (which consent shall not unreasonably be withheld). The Seller
covenants to provide prompt written notice to the Note Purchaser upon any
material change made to the Seller's Contract Purchase Guidelines.

         (d) COOPERATION. If an Event of Default shall have occurred and be
continuing, Seller shall cooperate with and provide all information and access
requested by the Trustee, the Note Purchaser and/or the Noteholders in
connection with any actions taken pursuant to SECTION 5.4 of the Indenture.

SECTION 8.3. LIABILITY OF SELLER; INDEMNITIES. The Seller shall indemnify the
Purchaser, the Backup Servicer, the Trustee, the Noteholders, the Note Purchaser
and their respective officers, directors, agents and employees for any liability
as a result of the failure of a Receivable to be originated in compliance with
all requirements of law and for any breach of any of its representations,
warranties, covenants or other agreements contained herein.

         (a) The Seller shall defend, indemnify, and hold harmless the
Purchaser, the Backup Servicer, the Trustee, the Noteholders, the Note Purchaser
and their respective officers, directors, agents and employees from and against
any and all costs, expenses, losses, damages, claims, and liabilities, arising
out of or resulting from the use, ownership, or operation by the Seller, any
Affiliate thereof or any of their respective agents or subcontractors, of a
Financed Vehicle.

         (b) The Seller shall indemnify, defend and hold harmless the Purchaser,
the Backup Servicer, the Trustee, the Noteholders, the Note Purchaser and their
respective officers, directors, agents and employees from and against any taxes
that may at any time be asserted against any such Person with respect to the
transactions contemplated in this Agreement and any of the Basic Documents
(except any income taxes arising out of fees paid to the Trustee and the Backup
Servicer and except any taxes to which the Trustee may otherwise be subject),
including without limitation any sales, gross receipts, general corporation,
tangible personal property, privilege or license taxes (but, in the case of the
Purchaser, not including any taxes asserted with respect to federal or other
income taxes arising out of distributions on the Notes) and costs and expenses
in defending against the same.

         (c) The Seller shall indemnify, defend and hold harmless the Purchaser,
the Backup Servicer, the Trustee, the Noteholders, the Note Purchaser and their
respective officers, directors, agents and employees from and against any loss,
liability or expense incurred by reason of (i) the Seller's willful misfeasance,
bad faith or negligence in the performance of its duties under this Agreement,
or by reason of reckless disregard of its obligations and duties under this
Agreement and/or (ii) the Seller's or the Purchaser's violation of federal or
State securities laws in connection with the offering and sale of the Notes

                                       33
<PAGE>

         (d) The Seller shall indemnify, defend and hold harmless the Trustee
and the Backup Servicer and its officers, directors, employees and agents from
and against any and all costs, expenses, losses, claims, damages and liabilities
arising out of, or incurred in connection with the acceptance or performance of
the trusts and duties set forth herein and in the Basic Documents except to the
extent that such cost, expense, loss, claim, damage or liability shall be due to
the willful misfeasance, bad faith or negligence (except for errors in judgment)
of the Trustee or the Backup Servicer.

         (e) The Seller shall indemnify, defend and hold harmless the Purchaser,
the Backup Servicer, the Trustee, the Noteholders, the Note Purchaser and their
respective officers, directors, agents and employees from and against any and
all costs, expenses, losses, claims, damages and liabilities arising out of or
relating to the failure of a Receivable to be originated in compliance with all
requirements of law, including without limitation all Consumer Laws, and for any
breach of any of the Seller's representations and warranties, covenants or other
agreements contained herein (including, without limitation, the representations
contained in SECTION 3.1 hereof) or in any other Basic Document to which the
Seller is a party.

         Indemnification under this Section shall survive the resignation or
removal of the Servicer or the Trustee and the termination of this Agreement and
the other Basic Documents and shall include reasonable fees and expenses of
counsel and other expenses of litigation. These indemnity obligations shall be
in addition to any obligation that the Seller may otherwise have under
applicable law, hereunder or under any other Basic Document. If the Seller shall
have made any indemnity payments pursuant to this Section and the Person to or
on behalf of whom such payments are made thereafter shall collect any of such
amounts from others, such Person shall promptly repay such amounts to the
Seller, without interest.

         Notwithstanding any provision of this Section 8.3 or any other
provision of this Agreement, nothing herein shall be construed as to require the
Seller to provide any indemnification hereunder or under any other Basic
Document for any costs, expenses, losses, claims, damages or liabilities arising
out of, or incurred in connection with, credit losses with respect to the
Receivables.

SECTION 8.4. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS OF,
SELLER. Seller shall not merge or consolidate with any other person, convey,
transfer or lease substantially all its assets as an entirety to another Person,
or permit any other Person to become the successor to Seller's business unless,
after the merger, consolidation, conveyance, transfer, lease or succession, the
successor or surviving entity shall be capable of fulfilling the duties of
Seller contained in this Agreement and the other Basic Documents to which it is
a party. Any corporation (i) into which Seller may be merged or consolidated,
(ii) resulting from any merger or consolidation to which Seller shall be a
party, (iii) which acquires by conveyance, transfer, or lease substantially all
of the assets of Seller, or (iv) succeeding to the business of Seller, in any of
the foregoing cases shall execute an agreement of assumption to perform every
obligation of Seller under this Agreement and the other Basic Documents to which
it is a party and, whether or not such assumption agreement is executed, shall
be the successor to Seller under this Agreement and the other Basic Documents to
which it is a party without the execution or filing of any paper or any further
act on the part of any of the parties to this Agreement, anything in this
Agreement to the contrary notwithstanding; PROVIDED, HOWEVER, that nothing
contained herein shall be deemed to release Seller from any obligation. Seller
shall provide notice of any merger, consolidation or succession pursuant to this
Section to the Trustee, the Note Purchaser and the Noteholders. Notwithstanding
the foregoing, Seller shall not merge or consolidate with any other Person or
permit any other Person to become a successor to Seller's business, unless (x)
immediately after giving effect to such transaction, no representation or
warranty made pursuant to SECTION 8.1 shall have been breached (for purposes
hereof, such representations and warranties shall be deemed made as of the date
of the consummation of such transaction) and no event that, after notice or
lapse of time, or both, would become an Event of Default shall have occurred and
be continuing, (y) Seller shall have delivered to the Trustee, the Note
Purchaser and the Noteholders 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 and that all conditions precedent, if any,
provided for in this Agreement relating to such transaction have been complied
with, and (z) Seller shall have delivered to the Trustee, the Note Purchaser and
the Noteholders an Opinion of Counsel, stating in the opinion of such counsel,
either (A) all financing statements and continuation statements and amendments
thereto have been authorized and filed that are necessary to preserve and
protect the interest of the Purchaser and the Trustee in the Opinion Collateral
and reciting the details of the filings or (B) no such action shall be necessary
to preserve and protect such interest.

SECTION 8.5. [RESERVED].

SECTION 8.6. REPORTING REQUIREMENTS. (a) The Seller shall furnish, or cause to
be furnished to the Noteholders and Note Purchaser:

                  (i) AUDIT REPORT. As soon as available and in any event within
         90 days after the end of each fiscal year of the Seller, a copy of the
         consolidated balance sheet of the Seller and its Affiliates as at the
         end of such fiscal year, together with the related statements of
         earnings, stockholders' equity and cash flows for such fiscal year,
         prepared in reasonable detail and in accordance with GAAP certified by
         independent certified public accountants of recognized national
         standing as shall be selected by the Seller.

                  (ii) QUARTERLY STATEMENTS. As soon as available, but in any
         event within 45 days after the end of each fiscal quarter (except the
         fourth fiscal quarter) of the Seller, copies of the unaudited condensed
         consolidated balance sheet of the Seller and its Affiliates as at the
         end of such fiscal quarter and the related unaudited statements of

                                       34
<PAGE>

         earnings, stockholders' equity and cash flows for the portion of the
         fiscal year through such fiscal quarter (and as to the statements of
         earnings for such fiscal quarter) in each case setting forth in
         comparative form the figures for the corresponding periods of the
         previous fiscal year, prepared in reasonable detail and in accordance
         with GAAP applied consistently throughout the periods reflected therein
         and certified by the chief financial or accounting officer of the
         Seller as presenting fairly the financial condition and results of
         operations of the Seller and its Affiliates (subject to normal year-end
         adjustments).

         (b) For so long as Seller is subject to the reporting requirements of
Section 13(a) of the Exchange Act, its filing of the annual and quarterly
reports required under said act, on a timely basis, shall be deemed compliance
with this Section 8.6.

                                   ARTICLE IX
                                   ----------

                                  THE SERVICER
                                  ------------

SECTION 9.1. REPRESENTATIONS AND COVENANTS OF SERVICER. The Servicer (and the
Backup Servicer, in the case of clause (j) below) makes the following
representations and covenants on which the Purchaser shall be deemed to have
relied in acquiring the Receivables, on which the Noteholders shall be deemed to
have relied in purchasing the Notes and on which the Note Purchaser shall be
deemed to have relied in making each Advance. The representations speak as of
the execution and delivery of this Agreement and as of the Closing Date, in the
case of Receivables conveyed by the Closing Date, and as of the applicable
Funding Date, in the case of Receivables conveyed by such Funding Date, and the
representations and covenants shall survive the sale of the Receivables to the
Purchaser and the pledge thereof to the Trustee for the benefit of the
Noteholders and the Note Purchaser pursuant to the Indenture.

         (a) ORGANIZATION AND GOOD STANDING. The Servicer has been duly
organized and is validly existing as a corporation and in good standing under
the laws of the State of California, with power, authority and legal right to
own its properties and to conduct its business as such properties are currently
owned and such business is presently conducted, and had at all relevant times,
and shall have, power, authority and legal right to acquire, own and service the
Receivables.

         (b) DUE QUALIFICATION. The Servicer 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 property
or the conduct of its business (including the servicing of the Receivables as
required by this Agreement) requires or shall require such qualification except
where the failure to so qualify or obtain such licenses or consents would not
result in a Material Adverse Effect or a Material Adverse Change.

         (c) POWER AND AUTHORITY. The Servicer has the power and authority to
execute and deliver this Agreement and the Basic Documents to which it is a
party and to carry out its terms and their terms, respectively, and the
execution, delivery and performance of this Agreement and the Basic Documents to
which it is a party have been duly authorized by the Servicer by all necessary
corporate action.

                                       35
<PAGE>

         (d) BINDING OBLIGATION. This Agreement and the Basic Documents to which
the Servicer is a party shall constitute legal, valid and binding obligations of
the Servicer 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.

         (e) NO VIOLATION. The consummation of the transactions contemplated by
this Agreement and the Basic Documents to which to the Servicer is a party, and
the fulfillment of the terms of this Agreement and the Basic Documents to which
the Servicer is a party, shall 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 the Servicer,
or any indenture, agreement, mortgage, deed of trust or other instrument to
which the Servicer is a party or by which it is bound or 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 Basic Documents, or violate
any law, order, rule or regulation applicable to the Servicer of any court or of
any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Servicer or any of its
properties.

         (f) NO PROCEEDINGS. There are no proceedings or investigations pending
or, to the Servicer's knowledge, threatened against the Servicer, before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over the Servicer or its properties (A)
asserting the invalidity of this Agreement or any of the Basic Documents, (B)
seeking to prevent the issuance of the Notes or the consummation of any of the
transactions contemplated by this Agreement or any of the Basic Documents, or
(C) seeking any determination or ruling that might materially and adversely
affect the performance by the Servicer of its obligations under, or the validity
or enforceability of, this Agreement or any of the other Basic Documents or
otherwise have a Material Adverse Effect or result in a Material Adverse Change,
or (D) relating to the Servicer and which might adversely affect the federal or
state income, excise, franchise or similar tax attributes of the Notes.

         (g) NO CONSENTS. No consent, approval, authorization or order of or
declaration or filing with any governmental authority is required for the
issuance or sale of the Notes or the consummation of the other transactions
contemplated by this Agreement, except such as have been duly made or obtained.

         (h) TAXES. The Servicer has filed all federal and state tax returns
that are required to be filed and paid all taxes, including any assessments
received by it, to the extent that such taxes have become due (other than taxes,
the amount or validity of which are currently being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of the Servicer). Any taxes, fees and other
governmental charges payable by the Servicer in connection with consummation of
the transactions contemplated by this Agreement and the other Basic Documents to
which the Servicer is a party and the fulfillment of the terms of this Agreement
and the other Basic Documents to which the Servicer is a party have been paid or
shall have been paid as of each Funding Date.

         (i) CHIEF EXECUTIVE OFFICE. The Servicer hereby represents and warrants
to the Trustee that the Servicer's principal place of business and chief
executive office is 16355 Laguna Canyon Road, Irvine, California 92618.

         (j) DATA MAPPING. Neither the Servicer nor the Backup Servicer is aware
of any fact that would cause such Person reasonably to believe that the
Servicer's servicing data cannot be mapped from the Servicer's system to the
Backup Servicer's system.

         (k) CHANGES TO SERVICING GUIDELINES. The Servicer covenants that it
will not make any material changes to the Servicing Guidelines prior to the
Termination Date without the prior written consent of the Note Purchaser (which
consent shall not unreasonably be withheld).

         (l) COOPERATION. If an Event of Default shall have occurred and be
continuing, Servicer shall cooperate with and provide all information and access
reasonably requested by the Trustee, the Note Purchaser and the Noteholders in
connection with any actions taken pursuant to SECTION 5.4 of the Indenture.

SECTION 9.2. LIABILITY OF SERVICER; INDEMNITIES.

         (a) The Servicer (in its capacity as such) shall be liable hereunder
only to the extent of the obligations in this Agreement specifically undertaken
by the Servicer and the representations made by the Servicer in the Basic
Documents to which it is a party.

                                       36
<PAGE>

                  (i) The Servicer shall defend, indemnify and hold harmless the
         Purchaser, the Trustee, the Backup Servicer, the Noteholders, the Note
         Purchaser and their respective officers, directors, agents and
         employees from and against any and all costs, expenses, losses,
         damages, claims and liabilities, arising out of or resulting from the
         use, ownership, repossession or operation by the Servicer or any
         Affiliate or agent or sub-contractor thereof of any Financed Vehicle.

                  (ii) The Servicer, so long as CPS is the Servicer, shall
         indemnify, defend and hold harmless the Purchaser, the Trustee, the
         Backup Servicer, the Noteholders, the Note Purchaser and their
         respective officers, directors, agents and employees from and against
         any taxes that may at any time be asserted against any of such parties
         with respect to the transactions contemplated in this Agreement and the
         other Basic Documents, including, without limitation, any sales, gross
         receipts, general corporation, tangible personal property, privilege or
         license taxes (but not including any federal or other income taxes,
         including franchise taxes asserted with respect to, and as of the date
         of, the sale of the Receivables and the Other Conveyed Property to the
         Purchaser, the pledge thereof to the Trustee for the benefit of the
         Note Purchaser and the Noteholders or the issuance and original sale of
         the Notes) and costs and expenses in defending against the same.

                  (iii) The Servicer shall indemnify, defend and hold harmless
         the Purchaser, the Trustee, the Backup Servicer, the Noteholders, the
         Note Purchaser and their respective officers, directors, agents and
         employees from and against any and all costs, expenses, losses, claims,
         damages, and liabilities to the extent that such cost, expense, loss,
         claim, damage, or liability arose out of, or was imposed upon the
         Purchaser, the Trustee, the Backup Servicer, the Noteholders or the
         Note Purchaser through the negligence, willful misfeasance or bad faith
         of the Servicer in the performance of its duties under this Agreement
         or by reason of reckless disregard of its obligations and duties under
         this Agreement or as a result of a breach of any representation,
         warranty, covenant or other agreement made by the Servicer in this
         Agreement or in any other Basic Document to which it is a party.

                  (iv) The Servicer shall indemnify, defend, and hold harmless
         the Trustee and the Backup Servicer from and against all costs,
         expenses, losses, claims, damages, and liabilities arising out of or
         incurred in connection with the acceptance or performance of the trusts
         and duties herein contained, except to the extent that such cost,
         expense, loss, claim, damage or liability: (A) shall be due to the
         willful misfeasance, bad faith, or negligence (except for errors in
         judgment) of the Trustee or the Backup Servicer, as applicable or (B)
         relates to any tax other than the taxes with respect to which the
         Servicer shall be required to indemnify the Trustee or the Backup
         Servicer.

                  (v) The Servicer shall indemnify, defend and hold harmless the
         Purchaser, the Backup Servicer, the Trustee, the Noteholders, the Note
         Purchaser and their respective officers, directors, agents and
         employees from and against any and all costs, expenses, losses, claims,
         damages and liabilities arising out of or relating to the failure of a
         Receivable to be serviced in compliance with all requirements of law,
         including without limitation all Consumer Laws, and for any breach of
         any of the Servicer's representations and warranties, covenants or
         other agreements contained herein or in any other Basic Document to
         which the Servicer is a party.

         (b) Notwithstanding the foregoing, the Servicer shall not be obligated
to defend, indemnify, and hold harmless any Noteholder or the Note Purchaser for
any losses, claims, damages or liabilities incurred by such Noteholder or the
Note Purchaser arising out of claims, complaints, actions and allegations
relating to Section 406 of ERISA or Section 4975 of the Code as a result of the
purchase or holding of any Note by such Noteholder or the Note Purchaser with
the assets of a plan subject to such provisions of ERISA or the Code.

         (c) For purposes of this SECTION 9.2, in the event of the termination
of the rights and obligations of the Servicer (or any successor thereto pursuant
to SECTION 9.3) as Servicer pursuant to SECTION 10.1, or a resignation by such
Servicer pursuant to this Agreement, such Servicer shall be deemed to be the
Servicer pending appointment of a successor Servicer pursuant to SECTION 10.2.
The provisions of this SECTION 9.2(C) shall in no way affect the survival
pursuant to SECTION 9.2(D) of the indemnification by the Servicer provided by
SECTION 9.2(A).

                                       37
<PAGE>

         (d) Indemnification under this SECTION 9.2 shall survive the
termination of this Agreement and the other Basic Documents and any resignation
or removal of CPS or any successor Servicer as Servicer and shall include
reasonable fees and expenses of counsel and expenses of litigation. These
indemnity obligations shall be in addition to any obligation that the Servicer
may otherwise have under applicable law, hereunder or under any other Basic
Document. If the Servicer shall have made any indemnity payments pursuant to
this Section and the recipient thereafter collects any of such amounts from
others, the recipient shall promptly repay such amounts to the Servicer, without
interest.

SECTION 9.3. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS OF THE
SERVICER OR BACKUP SERVICER.

         (a) The Servicer shall not merge or consolidate with any other Person,
convey, transfer or lease all or substantially all of its assets as an entirety
to another Person, or permit any other Person to become the successor to the
Servicer's business unless, after the merger, consolidation, conveyance,
transfer, lease or succession, the successor or surviving entity shall be
capable of fulfilling the duties of the Servicer contained in this Agreement and
the other Basic Documents to which it is a party. Any corporation (i) into which
the Servicer may be merged or consolidated, (ii) resulting from any merger or
consolidation to which the Servicer shall be a party, (iii) which acquires by
conveyance, transfer, or lease substantially all of the assets of the Servicer,
or (iv) succeeding to the business of the Servicer, in any of the foregoing
cases shall execute an agreement of assumption to perform every obligation of
the Servicer under this Agreement and the other Basic Documents to which it is a
party and, whether or not such assumption agreement is executed, shall be the
successor to the Servicer under this Agreement and the other Basic Documents to
which it is a party without the execution or filing of any paper or any further
act on the part of any of the parties to this Agreement, anything in this
Agreement to the contrary notwithstanding; PROVIDED, HOWEVER, that nothing
contained herein shall be -- - deemed to release the Servicer from any
obligation. The Servicer shall provide notice of any merger, consolidation or
succession pursuant to this Section to the Trustee, the Note Purchaser and the
Noteholders. Notwithstanding the foregoing, the Servicer shall not merge or
consolidate with any other Person or permit any other Person to become a
successor to the Servicer's business, unless (x) immediately after giving effect
to such transaction, no representation or warranty made pursuant to SECTION 9.1
shall have been breached (for purposes hereof, such representations and
warranties shall be -- deemed made as of the date of the consummation of such
transaction) and no event that, after notice or lapse of time, or both, would
become Event of Default shall have occurred and be continuing, (y) the Servicer
shall have delivered to the Trustee, the Note Purchaser and the Noteholders 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 and that all conditions precedent, if any, provided for in this
Agreement relating to such transaction have been complied with, and (z) the
Servicer shall have delivered to the Trustee, the Note Purchaser and the
Noteholders an Opinion of Counsel, stating 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 Purchaser and the Trustee for the benefit of the Noteholders
and the Note Purchaser in the Opinion Collateral and reciting the details of the
filings or (B) no such action shall be necessary to preserve and protect such
interest.

         (b) Any Person (i) into which the Backup Servicer (in its capacity as
Backup Servicer or successor Servicer) may be merged or consolidated, (ii)
resulting from any merger or consolidation to which the Backup Servicer shall be
a party, (iii) which acquires by conveyance, transfer or lease substantially all
of the assets of the Backup Servicer, or (iv) succeeding to the business of the
Backup Servicer, in any of the foregoing cases shall execute an agreement of
assumption to perform every obligation of the Backup Servicer under this
Agreement and, whether or not such assumption agreement is executed, shall be
the successor to the Backup Servicer under this Agreement without the execution
or filing of any paper or any further act on the part of any of the parties to
this Agreement, anything in this Agreement to the contrary notwithstanding;
PROVIDED, HOWEVER, that nothing contained herein shall be deemed to release the
Backup Servicer from any obligation.

                                       38
<PAGE>

SECTION 9.4. [RESERVED]

SECTION 9.5. DELEGATION OF DUTIES. The Servicer may at any time delegate duties
under this Agreement to sub-contractors who are in the business of servicing
automotive receivables with the prior written consent of the Note Purchaser
(which consent shall not unreasonably be withheld); PROVIDED, HOWEVER, that no
such delegation or subcontracting of duties by the Servicer shall relieve the
Servicer of its responsibility with respect to such duties.

SECTION 9.6. SERVICER AND BACKUP SERVICER NOT TO RESIGN. Subject to the
provisions of SECTION 9.3, neither the Servicer nor the Backup Servicer shall
resign from the obligations and duties imposed on it by this Agreement as
Servicer or Backup Servicer except (i) upon a determination that by reason of a
change in legal requirements the performance of its duties under this Agreement
would cause it to be in violation of such legal requirements in a manner which
would have a material adverse effect on the Servicer or the Backup Servicer, as
the case may be, and the Note Purchaser does not elect to waive the obligations
of the Servicer or the Backup Servicer, as the case may be, to perform the
duties which render it legally unable to act or to delegate those duties to
another Person or, (ii) in the case of the Backup Servicer, upon the prior
written consent of the Note Purchaser. Any such determination permitting the
resignation of the Servicer or Backup Servicer pursuant to clause (i) in the
immediately preceding sentence shall be evidenced by an Opinion of Counsel to
such effect delivered and acceptable to the Trustee and the Note Purchaser. No
resignation of the Servicer shall become effective until the Backup Servicer or
an entity acceptable to the Note Purchaser shall have assumed the
responsibilities and obligations of the Servicer. No resignation of the Backup
Servicer shall become effective until an entity acceptable to the Note Purchaser
shall have assumed the responsibilities and obligations of the Backup Servicer;
provided, however, that in the event a successor Backup Servicer is not
appointed within 60 days after the Backup Servicer has given notice of its
resignation and has provided the Opinion of Counsel required by this SECTION
9.6, the Backup Servicer may petition a court for its removal.

                                   ARTICLE X
                                   ---------

                                     DEFAULT
                                     -------

SECTION 10.1. SERVICER TERMINATION EVENTS. For purposes of this Agreement, each
of the following shall constitute a "SERVICER TERMINATION EVENT":

         (a) Any failure by the Servicer to deliver or cause to be delivered any
proceeds or payment required to be so delivered under this Agreement or any
other Basic Document within one (1) Business Day of the date when the same
becomes due;

         (b) Failure by the Servicer to deliver, or cause to be delivered, to
the Noteholders, the Note Purchaser, the Trustee and the Backup Servicer, any
Servicer's Certificate by the Determination Date prior to the related Settlement
Date, which failure continues unremedied for a period of two (2) Business Days;

         (c) Failure by the Servicer to perform or observe in any material
respect any term, covenant, or agreement under this Agreement or any other Basic
Document (other than any term, covenant or agreement referred to in another
subparagraph of this SECTION 10.1), which failure materially and adversely
affects the rights of the Note Purchaser or the Noteholders and is not cured
within 30 calendar days after written notice is received by the Servicer from
the Trustee, the Note Purchaser or a Noteholder or after discovery of such
failure by a Responsible Officer of the Servicer;

         (d) Any representation, warranty or statement of the Servicer made in
this Agreement or any other Basic Document to which it is a party or any
certificate, report or other writing delivered pursuant hereto or thereto shall
prove to be incorrect in any material respect as of the time when the same shall
have been made, and such incorrectness materially and adversely affects the
rights of the Note Purchaser or the Noteholders and is not cured within 30
calendar days after written notice is received by the Servicer from the Trustee,
the Note Purchaser or a Noteholder or after discovery of such failure by a
Responsible Officer of the Servicer;

                                       39
<PAGE>

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

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

         (g) An Event of Default shall have occurred (so long as CPS is
Servicer);

         (h) The occurrence of any of the following trigger events: (i) the
three-month rolling average Servicer Delinquency Ratio exceeds (A) 6.00% during
the Accrual Periods from April to September or (B) 6.50% during the Accrual
Periods from October to March; or (ii) the Servicer Loss Ratio exceeds (A) 7.50%
during the Accrual Periods from May to October or (B) 8.25% during the Accrual
Periods from November to April;

         (i) The Servicer fails to maintain minimum Consolidated Total Adjusted
Equity of $60,000,000 as of the end of any fiscal quarter;

         (j) The Servicer exceeds a maximum leverage ratio (total liabilities
less all non-recourse debt/Consolidated Total Adjusted Equity) of six times as
of the end of any fiscal quarter; and

         (k) The Servicer fails to maintain cash and cash equivalents of at
least $8.5 million as of the end of any calendar month.

         In the event that the Servicer, Purchaser or Trustee gains knowledge of
the occurrence of a Servicer Termination Event, the Servicer, Purchaser or
Trustee, as applicable, shall promptly notify the Note Purchaser and the
Noteholders in writing of such occurrence; PROVIDED, THAT, the Servicer shall be
deemed to satisfy such obligation upon its delivery of an Officer's Certificate
in accordance with SECTION 4.10 hereof.

SECTION 10.2. CONSEQUENCES OF A SERVICER TERMINATION EVENT OR NON-EXTENSION OF
TERM OF SERVICER. If a Servicer Termination Event shall occur and be continuing,
the Majority Noteholders or the Note Purchaser by notice given in writing to the
Backup Servicer and the Servicer may terminate all of the rights and obligations
of the Servicer under this Agreement. The outgoing Servicer shall be entitled to
its pro rata share of the Servicing Fee for the number of days in the Accrual
Period prior to the effective date of its termination. On or after the receipt
by the Servicer of such written notice or upon non-extension of the servicing
term as referred to in SECTION 4.15, all authority, power, obligations and
responsibilities of the Servicer under this Agreement, whether with respect to
the Notes or the Receivables and Other Conveyed Property or otherwise,
automatically shall pass to, be vested in and become obligations and
responsibilities of the Backup Servicer (or such other successor Servicer
appointed by the Majority Noteholders and the Note Purchaser under SECTION
10.3); PROVIDED, HOWEVER, that the successor Servicer shall have no liability
with respect to any obligation which was required to be performed by the
outgoing Servicer prior to the date that the successor Servicer becomes the
Servicer or any claim of a third party based on any alleged action or inaction
of the outgoing Servicer. The successor Servicer is authorized and empowered by
this Agreement to execute and deliver, on behalf of the outgoing Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement of the Receivables and the Other Conveyed Property and related
documents to show the Purchaser as lienholder or secured party on the related
Lien Certificates, or otherwise. The outgoing Servicer agrees to cooperate with

                                       40
<PAGE>

the successor Servicer in effecting the termination of the responsibilities and
rights of the outgoing Servicer under this Agreement, including, without
limitation, the transfer to the successor Servicer for administration by it of
all cash amounts that shall at the time be held by the outgoing Servicer for
deposit, or have been deposited by the outgoing Servicer, in the Collection
Account or thereafter received with respect to the Receivables and the delivery
to the successor Servicer of all Receivable Files that shall at the time be held
by the outgoing Servicer and a computer tape in readable form as of the most
recent Business Day containing all information necessary to enable the successor
Servicer to service the Receivables and the Other Conveyed Property. All
reasonable costs and expenses (including reasonable attorneys' fees) incurred in
connection with transferring any Receivable Files to the successor Servicer and
amending this Agreement to reflect such succession as Servicer pursuant to this
SECTION 10.2 shall be paid by the predecessor Servicer upon presentation of
reasonable documentation of such costs and expenses. In addition, any successor
Servicer shall be entitled to payment from the immediate predecessor Servicer
for reasonable transition expenses incurred in connection with acting as
successor Servicer, and to the extent not so paid, such payment shall be made
pursuant to SECTION 5.7 hereof. Upon receipt of notice of the occurrence of a
Servicer Termination Event or the non-extension of the Servicer's term, the
Trustee shall give notice thereof to the Noteholders and the Note Purchaser. If
requested by the Majority Noteholders or the Note Purchaser, the successor
Servicer shall terminate the Lockbox Agreement and direct the Obligors to make
all payments under the Receivables directly to the successor Servicer (in which
event the successor Servicer shall process such payments in accordance with
SECTION 4.2(E)), or to a lockbox established by the successor Servicer at the
direction of the Note Purchaser, at the successor Servicer's expense. The
outgoing Servicer shall grant the Trustee, the successor Servicer, the Note
Purchaser and the Noteholders reasonable access to the outgoing Servicer's
premises at the outgoing Servicer's expense.

SECTION 10.3. APPOINTMENT OF SUCCESSOR.

         (a) On and after the time the Servicer receives a notice of termination
pursuant to SECTION 10.2, upon non-extension of the servicing term as referred
to in SECTION 4.15, or upon the resignation of the Servicer pursuant to SECTION
9.6, the outgoing Servicer shall continue to perform its functions as Servicer
under this Agreement, in the case of termination, only until the date specified
in such termination notice or, if no such date is specified in a notice of
termination, until receipt of such notice and, in the case of expiration and
non-renewal of the term of the Servicer upon the expiration of such term, and,
in the case of resignation, until (i) the later of (x) the date 45 days from the
delivery to the Trustee of written notice of such resignation (or written
confirmation of such notice) in accordance with the terms of this Agreement and
(y) the date upon which the predecessor Servicer shall become unable to act as
Servicer, as specified in the notice of resignation and accompanying Opinion of
Counsel or (ii) such time as a successor Servicer shall assume all of the rights
and obligations of the predecessor Servicer hereunder and under any other Basic
Document; PROVIDED, HOWEVER, that the outgoing Servicer shall not be relieved of
its duties, obligations and liabilities as Servicer until a successor Servicer
has assumed such duties, obligations and liabilities. Notwithstanding the
preceding sentence, if the Backup Servicer or any other successor Servicer shall
not have assumed the duties, obligations and liabilities of the Servicer within
45 days of the termination, non-extension or resignation described in this
SECTION 10.3, the outgoing Servicer may petition a court of competent
jurisdiction to appoint any Eligible Servicer as the successor to the outgoing
Servicer. Pending appointment as successor Servicer, the Backup Servicer (or
such other Person as shall have been appointed by the Majority Noteholders or
the Note Purchaser) shall act as successor Servicer unless it is legally unable
to do so, in which event the outgoing Servicer shall continue to act as Servicer
until a successor has been appointed and accepted such appointment. In the event
of termination of the Servicer, Wells Fargo Bank, National Association, as the
Backup Servicer shall assume the obligations of Servicer hereunder on the date
(the "ASSUMPTION DATE") specified in the written notice delivered by the Trustee
to the Backup Servicer and the Servicer pursuant to SECTION 10.2 or, in the
event that the Majority Noteholders or the Note Purchaser shall have determined
that a Person other than the Backup Servicer shall be the successor Servicer in
accordance with SECTION 10.2, on the date of the execution of a written
assumption agreement by such Person to serve as successor Servicer.
Notwithstanding the Backup Servicer's assumption of, and its agreement to
perform and observe, all duties, responsibilities and obligations of the Seller
as Servicer, or any successor Servicer, under this Agreement arising on and
after the Assumption Date, the Backup Servicer shall not be deemed to have
assumed or to become liable for, or otherwise have any liability for any duties,
responsibilities, obligations or liabilities of the Seller or any other Servicer
arising on or before the Assumption Date, whether provided for by the terms of
this Agreement, arising by operation of law or otherwise, including, without
limitation, any liability for any duties, responsibilities, obligations or
liabilities of the Seller or any other Servicer arising on or before the
Assumption Date under SECTION 4.7 or 9.2 of this Agreement, regardless of when

                                       41
<PAGE>

the liability, duty, responsibility or obligation of the Seller or any other
Servicer therefor arose, whether provided by the terms of this Agreement,
arising by operation of law or otherwise. Notwithstanding the above, if the
Backup Servicer shall be legally unable or unwilling to act as Servicer, the
Backup Servicer, the Trustee, the Majority Noteholders or the Note Purchaser may
petition a court of competent jurisdiction to appoint any Eligible Servicer as
the successor to the outgoing Servicer. Pending appointment pursuant to the
preceding sentence, the Backup Servicer shall act as successor Servicer unless
it is legally unable to do so, in which event the outgoing Servicer shall
continue to act as Servicer until a successor has been appointed and accepted
such appointment. Subject to SECTION 9.6, no provision of this Agreement shall
be construed as relieving the Backup Servicer of its obligation to succeed as
successor Servicer upon the termination of the Servicer pursuant to SECTION
10.2, the non-extension of the Servicer's term pursuant to SECTION 4.15 or the
resignation of the Servicer pursuant to SECTION 9.6. If upon the termination of
the Servicer pursuant to SECTION 10.2, the non-extension of the Servicer's term
pursuant to SECTION 4.15 or the resignation of the Servicer pursuant to SECTION
9.6, the Majority Noteholders and the Note Purchaser appoint a successor
Servicer other than the Backup Servicer, the Backup Servicer shall not be
relieved of its duties as Backup Servicer hereunder.

         (b) Any successor Servicer shall be entitled to such compensation
(whether payable out of the Collection Account or otherwise) as the outgoing
Servicer would have been entitled to under this Agreement if the outgoing
Servicer had not resigned or been terminated hereunder or had been renewed for
an additional servicing term hereunder.

SECTION 10.4. NOTIFICATION TO THE NOTEHOLDERS AND NOTE PURCHASERS. Upon any
termination of, or appointment of a successor to, the Servicer, the Trustee
shall give prompt written notice thereof to the Noteholders and the Note
Purchaser.

SECTION 10.5. WAIVER OF PAST DEFAUlTS. The Note Purchaser and the Majority
Noteholders may waive in writing any default by the Servicer in the performance
of its obligations under this Agreement and the consequences thereof. Upon any
such waiver of a past default, such default shall cease to exist, and any
Servicer Termination Event arising therefrom shall be deemed to have been
remedied for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereto.

SECTION 10.6. ACTION UPON CERTAIN FAILURES OF THE SERVICER. In the event that
the Trustee shall have knowledge of any failure of the Servicer specified in
SECTION 10.1 that would give rise to a right of termination under such Section
upon the Servicer's failure to remedy the same after notice, the Trustee shall
give notice thereof to the Servicer, the Note Purchaser and the Noteholders. For
all purposes of this Agreement (including, without limitation, this SECTION
10.6), the Trustee shall not be deemed to have knowledge of any failure of the
Servicer as specified in SECTIONS 10.1(C) through (H) unless notified thereof in
writing by the Servicer, the Note Purchaser or a Noteholder. The Trustee shall
be under no duty or obligation to investigate or inquire as to any potential
failure of the Servicer specified in SECTION 10.1.

SECTION 10.7. CONTINUED ERRORS. Notwithstanding anything contained herein to the
contrary, if the Backup Servicer becomes successor Servicer it is authorized to
accept and rely on all of the accounting, records (including computer records)
and work of the prior Servicer relating to the Receivables (collectively, the
"PREDECESSOR SERVICER WORK PRODUCT") without any audit or other examination
thereof, and the Backup Servicer as successor Servicer shall have no duty,
responsibility, obligation or liability for the acts and omissions of the prior
Servicer. If any error, inaccuracy, omission or incorrect or non-standard
practice or procedure (collectively, "ERRORS") exist in any Predecessor Servicer
Work Product and such Errors make it materially more difficult to service or
should cause or materially contribute to the Backup Servicer as successor
Servicer making or continuing any Errors (collectively, "CONTINUED ERRORS"), the
Backup Servicer as successor Servicer shall have no duty or responsibility for
such Continued Errors; PROVIDED, HOWEVER, that the Backup Servicer as successor
Servicer agrees to use its best efforts to prevent further Continued Errors. In
the event that the Backup Servicer as successor Servicer becomes aware of Errors
or Continued Errors, the Backup Servicer as successor Servicer shall, with the
prior consent of the Note Purchaser use its best efforts to reconstruct and
reconcile such data as is commercially reasonable to correct such Errors and
Continued Errors and to prevent future Continued Errors. The Backup Servicer as
successor Servicer shall be entitled to recover its costs thereby expended in
accordance with SECTIONS 5.7(A)(I) and 5.7(A)(VI) hereof.

                                       42
<PAGE>

                                   ARTICLE XI
                                   ----------

                            MISCELLANEOUS PROVISIONS
                            ------------------------

SECTION 11.1. AMENDMENT.

         (a) This Agreement may not be waived, amended or otherwise modified
except in a writing signed by the parties hereto, the Note Purchaser and the
Majority Noteholders; PROVIDED, HOWEVER, that, no such amendment shall, without
the prior written consent of the Note Purchaser and all of the Noteholders, (i)
modify or have the effect of modifying Sections 5.7 or 5.8 or this SECTION 11.1
or (ii) eliminate or materially alter any party's delivery or notice obligations
to the Noteholders; PROVIDED, FURTHER, that no increase in the Minimum Placement
Fee in accordance with the definition thereof shall constitute a modification of
SECTION 5.8.

         (b) Prior to the execution of any amendment, waiver or consent to this
Agreement the Trustee shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment, waiver or consent is
authorized or permitted by this Agreement and the Opinion of Counsel referred to
in SECTION 11.2(I)(I).

         (c) The Trustee may, but shall not be obligated to, enter into any such
amendment, waiver or consent which affects the Trustee's own rights, duties or
immunities under this Agreement or otherwise.

         (d) Upon the termination of CPS as Servicer and the appointment of the
Backup Servicer as Servicer hereunder, all amendments to the terms of this
Agreement specified in the Servicing Assumption Agreement shall become a part of
this Agreement, as if this Agreement was amended to reflect such changes in
accordance with this SECTION 11.1.

SECTION 11.2. PROTECTION OF TITLE TO PROPERTY.

         (a) The Seller, the Purchaser or the Servicer or each of them shall
authorize, execute (if necessary) and file such financing statements and cause
to be authorized, executed (if necessary) and filed such continuation
statements, all in such manner and in such places and take such other action as
may be required by law fully to preserve, maintain and protect the interest of
the Purchaser and the interests of the Trustee for the benefit of the
Noteholders and the Note Purchaser in the Collateral and in the proceeds
thereof. The Seller shall deliver (or cause to be delivered) to the Noteholders,
the Note Purchaser and the Trustee file-stamped copies of, or filing receipts
for, any document filed as provided above, as soon as available following such
filing.

         (b) None of the Seller, the Purchaser or the Servicer shall change its
name, identity, jurisdiction of organization, form of organization or corporate
structure in any manner that would, could or might make any financing statement
or continuation statement filed in accordance with PARAGRAPH (A) above -
seriously misleading within the meaning of Section 9-506(a) of the UCC, unless
it shall have given the Noteholders, the Note Purchaser and the Trustee at least
thirty (30) days' prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or
continuation statements. Promptly upon such filing, the Purchaser, the Seller or
the Servicer, as the case may be, shall deliver an Opinion of Counsel to the
Trustee, the Note Purchaser and the Noteholders, in a form and substance
reasonably satisfactory to the Note Purchaser, stating either (A) all financing
statements and continuation statements have been authorized, executed and filed
that are necessary fully to preserve and protect the interest of the Purchaser
and the Trustee for the benefit of the Noteholders and the Note Purchaser in the
Collateral, and reciting the details of such filings or referring to prior
Opinions of Counsel in which such details are given, or (B) no such action shall
be necessary to preserve and protect such interest.

                                       43
<PAGE>

         (c) Each of the Seller, the Purchaser and the Servicer shall have an
obligation to give the Noteholders, the Note Purchaser and the Trustee at least
60 days' prior written notice of any relocation of its chief executive office or
a change in its corporate structure, jurisdiction of organization or name and
shall file amendments, continuation statements and new financing statements if,
as a result of such relocation or change, the applicable provisions of the UCC
would require the filing of any amendment of any previously filed financing or
continuation statement or of any new financing statement to fully preserve and
protect the interest of the Purchaser and the Trustee on behalf of the
Noteholders and the Note Purchaser in the Collateral. The Servicer shall at all
times be organized under the laws of the United States (or any State thereof)
and maintain its chief executive office and jurisdiction of organization, within
the United States of America.

         (d) The Servicer shall maintain accounts and records as to each
Receivable accurately and in sufficient detail to permit (i) the reader thereof
to know at any time the status of such Receivable, including payments and
recoveries made and payments owing (and the nature of each) and (ii)
reconciliation between payments or recoveries on (or with respect to) each
Receivable and the amounts from time to time deposited in the Collection Account
in respect of such Receivable.

         (e) The Servicer shall maintain its computer systems so that, from and
after the time of sale under this Agreement of the Receivables and the Other
Conveyed Property to the Purchaser, the Servicer's master computer records
(including any backup archives) that refer to a Receivable shall indicate
clearly the interest of the Purchaser in such Receivable and that such
Receivable is owned by the Purchaser and pledged to the Trustee. Indication of
the Purchaser's and the Trustee's interest in a Receivable shall be deleted from
or modified on the Servicer's computer systems when, and only when, the related
Receivable shall have been paid in full or repurchased.

         (f) If at any time the Seller or the Servicer shall propose to sell,
grant a security interest in or otherwise transfer any interest in automotive
receivables to any prospective purchaser, lender or other transferee, the
Servicer shall give to such prospective purchaser, lender or other transferee
computer tapes, records or printouts (including any restored from backup
archives) that, if they shall refer in any manner whatsoever to any Receivable,
shall indicate clearly that such Receivable has been sold and is owned by the
Purchaser and pledged to the Trustee for the benefit of the Noteholders and the
Note Purchaser.

         (g) The Servicer shall permit the Trustee, the Backup Servicer, the
Note Purchaser and the Noteholders and their respective agents upon reasonable
notice and at any time during normal business hours to inspect, audit, and make
copies of and abstracts from the Servicer's records regarding any Receivable.

         (h) Upon request, the Servicer shall furnish to any Noteholder, the
Note Purchaser or to the Trustee, within five Business Days, a list of all
Receivables (by contract number and name of Obligor) then pledged to the
Trustee, together with a reconciliation of such list to the Schedule of
Receivables and to each of the Servicer's Certificates furnished before such
request indicating removal of Receivables from the lien of the Indenture.

         (i) The Servicer shall deliver to the Note Purchaser, the Noteholders
and the Trustee:

                  (i) promptly after the execution and delivery of this
         Agreement and, if required pursuant to SECTION 11.1, of each amendment,
         waiver, or consent, an Opinion of Counsel, in form and substance
         satisfactory to the Note Purchaser and the Majority Noteholders,
         stating that in the opinion of such counsel, either (A) all financing
         statements and continuation statements have been authorized, executed
         and filed that are necessary fully to preserve and protect the interest
         of the Purchaser and the Trustee for the benefit of the Noteholders and
         the Note Purchaser in the Receivables and the Opinion Collateral, and
         reciting the details of such filings or referring to a prior Opinion of
         Counsel in which such details are given, or (B) no such action shall be
         necessary to preserve and protect such interest; and

                  (ii) within 90 days after the beginning of each calendar year
         beginning with the first calendar year beginning more than three months
         after the Closing Date, an Opinion of Counsel, dated as of a date
         during such 90-day period, stating that, the opinion of such counsel,

                                       44
<PAGE>

         either (a) all financing statements and continuation statement have
         been authorized, executed and filed that are necessary fully to
         preserve and protect the interest of the Purchaser and the Trustee for
         the benefit of the Noteholders and the Note Purchaser in the
         Receivables and the Opinion Collateral, and reciting the details of
         such filings or referring to prior Opinions of Counsel in which such
         details are given, or (b) no such action shall be necessary to preserve
         and protect such interest.

         Each Opinion of Counsel referred to in clause (i) or (ii) above shall
specify any action necessary (as of the date of such opinion) to be taken in the
following year to preserve and protect such interest.

         Subject to SECTION 4.5, the Seller hereby authorizes the Note
Purchaser, the Trustee and their respective agents to file such financing
statements and continuation statements and take such other actions as the Note
Purchaser or the Trustee may deem advisable in connection with the security
interest granted by the Seller pursuant to SECTION 2.2 to the extent permitted
by applicable law. Any such financing statements and continuation statements
shall be prepared by the Issuer or the Note Purchaser.

SECTION 11.3. NOTICES. All demands, notices and communications upon or to the
Seller, the Backup Servicer, the Servicer, the Purchaser, the Trustee, the
Backup Servicer, the Note Purchaser or the Noteholders under this Agreement
shall be in writing, via facsimile, personally delivered, or mailed by certified
mail, return receipt requested, and shall be deemed to have been duly given upon
receipt (a) in the case of the Seller, to Consumer Portfolio Services, Inc.,
16355 Laguna Canyon Road, Irvine, CA 92618, Attention: Chief Financial Officer,
Telecopy: (888) 577-7923; (b) in the case of the Servicer, to Consumer Portfolio
Services, Inc., 16355 Laguna Canyon Road, Irvine, CA 92618, Attention: Chief
Financial Officer, Telecopy: (888) 577-7923; (c) in the case of the Purchaser,
to Page Three Funding LLC, 16355 Laguna Canyon Road, Irvine, CA 92618,
Attention: Chief Financial Officer, Telecopy: (888) 577-7923; (d) in the case of
the Trustee or the Backup Servicer at the Corporate Trust Office; and (e) in the
case of the initial Noteholder and the Note Purchaser, to Bear, Stearns & Co.
Inc., as agent for Bear, Stearns International Limited, 383 Madison Ave., 10th
Floor, New York, New York, 10179; Attn: Clark MacKenzie; Telephone:
212-272-4076, Telecopy: 917-849-1151; with a copy to Bear, Stearns & Co. Inc.,
as agent for Bear, Stearns International Limited, 383 Madison Ave., 10th Floor,
New York, New York, 10179; Attn: Michael Solender; Telephone: 212-272-7850,
Telecopy: 917-849-1072; and (e) in the case of any subsequent Noteholders, at
the address reflected on the Note Register. The Note Purchaser may deliver to
the Noteholders any notices, reports, Servicer's Certificates or any other
documentation delivered to the Note Purchaser hereunder or under any other Basic
Document, but is under no obligation to so deliver such documentation and shall
not be liable for the content thereof. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Noteholders or Note Purchaser shall receive such
notice.

SECTION 11.4. ASSIGNMENT. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and permitted
assigns. Notwithstanding anything to the contrary contained herein, except as
provided in SECTIONS 8.4, 9.3 and this SECTION 11.4 and as provided in the
provisions of this Agreement concerning the resignation of the Servicer, this
Agreement may not be assigned by the Purchaser, the Seller or the Servicer
without the prior written consent of the Trustee, the Backup Servicer, the Note
Purchaser and the Majority Noteholders; PROVIDED THAT the Purchaser will grant
all of its right, title and interest herein to the Trustee for the benefit of
the Noteholders and the Note Purchaser.

SECTION 11.5. LIMITATIONS ON RIGHTS OF OTHERS. The provisions of this Agreement
are solely for the benefit of the parties hereto and for the benefit of the Note
Purchaser, as a third-party beneficiary. Nothing in this Agreement, whether
express or implied, shall be construed to give to any other Person any legal or
equitable right, remedy or claim in the Collateral or under or in respect of
this Agreement or any covenants, conditions or provisions contained herein.

SECTION 11.6. SEVERABILITY. Any provision of this Agreement that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                                       45
<PAGE>

SECTION 11.7. SEPARATE COUNTERPARTS. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument. Any signature page to this Agreement
containing a manual signature may be delivered by facsimile transmission or
other electronic communication device capable of transmitting or creating a
printable written record, and when so delivered shall have the effect of
delivery of an original manually signed signature page.

SECTION 11.8. HEADINGS. The headings of the various Articles and Sections herein
are for convenience of reference only and shall not define or limit any of the
terms or provisions hereof.

SECTION 11.9. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

SECTION 11.10. ASSIGNMENT TO TRUSTEE. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Purchaser to the Trustee pursuant to the Indenture for the benefit of the
Noteholders and the Note Purchaser of all right, title and interest of the
Purchaser in, to and under the Receivables and Other Conveyed Property and/or
the assignment of any or all of the Purchaser's rights and obligations hereunder
to the Trustee for the benefit of the Noteholders and the Note Purchaser.

SECTION 11.11. NONPETITION COVENANTS. Notwithstanding any prior termination of
this Agreement, the Servicer and the Seller shall not, prior to the date which
is one year and one day after the day upon which the outstanding principal
amount of the Notes has been reduced to zero and all Secured Obligations have
been paid in full, acquiesce, petition or otherwise invoke or cause the
Purchaser to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Purchaser under any
federal or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Purchaser or any substantial part of its property, or ordering the
winding up or liquidation of the affairs of the Purchaser.

SECTION 11.12. LIMITATION OF LIABILITY OF TRUSTEE. Notwithstanding anything
contained herein to the contrary, this Agreement has been executed and delivered
by Wells Fargo Bank, National Association, not in its individual capacity but
solely as Trustee and Backup Servicer and in no event shall Wells Fargo Bank,
National Association, have any liability for the representations, warranties,
covenants, agreements or other obligations of the Purchaser hereunder or in any
of the certificates, notices or agreements delivered pursuant hereto, as to all
of which recourse shall be had solely to the assets of the Purchaser.

SECTION 11.13. INDEPENDENCE OF THE SERVICER. For all purposes of this Agreement,
the Servicer shall be an independent contractor and shall not be subject to the
supervision of the Purchaser, the Trustee and Backup Servicer with respect to
the manner in which it accomplishes the performance of its obligations
hereunder. Unless expressly authorized by this Agreement, the Servicer shall
have no authority to act for or represent the Purchaser in any way and shall not
otherwise be deemed an agent of the Purchaser.

SECTION 11.14. NO JOINT VENTURE. Nothing contained in this Agreement (i) shall
constitute the Servicer and the Purchaser as members of any partnership, joint
venture, association, syndicate, unincorporated business or other separate
entity, (ii) shall be construed to impose any liability as such on any of them
or (iii) shall be deemed to confer on any of them any express, implied or
apparent authority to incur any obligation or liability on behalf of the others.

SECTION 11.15. SPECIAL SUPPLEMENTAL AGREEMENT. If any party to this Agreement is
unable to sign any amendment or supplement due to its dissolution, winding up or
comparable circumstances, then the consent of the Majority Noteholders and the
Note Purchaser shall be sufficient to amend this Agreement without such party's
signature.

                                       46
<PAGE>

SECTION 11.16. FULL RECOURSE TO THE ISSUER AND THE PURCHASER. The obligations of
the Issuer and the Purchaser under this Agreement and the other Basic Documents
to which it is a party shall be full recourse obligations of the Issuer and the
Purchaser. Notwithstanding the foregoing, no recourse shall be had for the
payment of any amount owing hereunder or for the payment of any fee hereunder or
any other obligation of, or claim against, the Issuer or the Purchaser arising
out of or based upon any provision herein or under any other Basic Document,
against any member, employee, officer, agent, director or authorized person of
the Issuer or the Purchaser or any Affiliate thereof except as the Issuer or the
Purchaser may have expressly agreed and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity; PROVIDED, HOWEVER, that the
foregoing shall not relieve any such person or entity of any liability they
might otherwise have as a result of fraudulent actions or omissions taken by
them. Nothing contained in this Section shall limit or be deemed to limit any
obligations of the Issuer, the Purchaser, the Seller or the Servicer hereunder
or under any other Basic Document, which obligations are full recourse
obligations of the Issuer, the Purchaser, the Seller and the Servicer,
respectively.

SECTION 11.17. ACKNOWLEDGEMENT OF ROLES. The parties expressly acknowledge and
consent to Wells Fargo Bank, National Association acting in the multiple
capacities of Backup Servicer and Trustee. The parties agree that Wells Fargo
Bank, National Association in such multiple capacities shall not be subject to
any claim, defense or liability arising from its performance in any such
capacity based on conflict of interest principles, duty of loyalty principles or
other breach of fiduciary duties to the extent that any such conflict or breach
arises from the performance by Wells Fargo Bank, National Association of any
other such capacity or capacities in accordance with this Agreement or any other
Basic Documents to which it is a party.

SECTION 11.18. TERMINATION. Except as otherwise provided herein, the respective
obligations and responsibilities of the Seller, the Purchaser, the Servicer, the
Backup Servicer and the Trustee created hereby shall terminate on the
Termination Date; PROVIDED, HOWEVER, in any case there shall be delivered to the
Trustee, the Note Purchaser and the Noteholders an Opinion of Counsel that all
applicable preference periods under federal, State and local bankruptcy,
insolvency and similar laws have expired with respect to the payments pursuant
to this SECTION 11.18. The Servicer shall promptly notify the Trustee, the
Seller, the Issuer, the Note Purchaser and the Noteholders of any prospective
termination pursuant to this SECTION 11.18.

SECTION 11.19. SUBMISSION TO JURISDICTION. ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION
AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO CONSENTS, FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THOSE COURTS.
EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, OR ANY LEGAL PROCESS WITH RESPECT TO ITSELF OR ANY OF ITS PROPERTY,
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING
IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED
HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY
NEW YORK LAW.

SECTION 11.20. WAIVER OF TRIAL BY JURY. THE PARTIES HERETO EACH WAIVE THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY
PARTY AGAINST THE OTHER PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT
CLAIMS OR OTHERWISE. THE PARTIES HERETO EACH AGREE THAT ANY SUCH CLAIM OR CAUSE
OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE
FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY
JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR
OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT.

                                       47
<PAGE>

SECTION 11.21. PROCESS AGENT. Each of the Purchaser, Seller, Servicer and
Trustee agrees that the process by which any proceedings in the State of New
York are begun may be served on it by being delivered by certified mail at the
chief executive office or corporate trust office, as applicable, or at its
registered office for the time being. If such person is not or ceases to be
effectively appointed to accept service of process on the Purchaser's, Seller's,
Servicer's or Trustee's behalf, the Purchaser, Seller, Servicer or Trustee, as
applicable, shall, on the written demand of the process agent, appoint a further
person in the State of New York to accept service of process on its behalf and,
failing such appointment within 15 days, the process agent shall be entitled to
appoint such a person by written notice to the Purchaser, Seller, Servicer or
Trustee, as applicable. Nothing in this sub-clause shall affect the right of the
process agent to serve process in any other manner permitted by law.

SECTION 11.22. SET-OFF(a) Each of the Seller, the Purchaser, the Issuer and the
Servicer agrees that it shall have no right of set-off or banker's lien against,
and no right to otherwise deduct from, any funds held in any account described
herein or in the Basic Documents for any amount owed to it by the Note Purchaser
or any Noteholder.

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

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

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

SECTION 11.23. NO WAIVER; CUMULATIVE REMEDIES. No failure to exercise and no
delay in exercising any right, remedy, power or privilege hereunder, shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise hereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and
not exhaustive of any rights, remedies, powers and privileges provided by law.

SECTION 11.24. MERGER AND INTEGRATION. Except as specifically stated otherwise
herein, this Agreement and the other Basic Documents sets forth the entire
understanding of the parties relating to the subject matter hereof, and all
prior understandings, written or oral, are superseded by this Agreement and the
other Basic Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.

                                       48
<PAGE>

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

                       PAGE THREE FUNDING LLC, as Purchaser and Issuer

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

                       CONSUMER PORTFOLIO SERVICES, INC., as
                       Seller and Servicer

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

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

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

                                       49
<PAGE>

                             ANNEX ADEFINED TERMS

                  "ACCOUNT CONTROL AGREEMENT" means that Deposit Account Control
Agreement dated as of November 15, 2005, by and among CPS, the Note Purchaser
and Wells Fargo Bank, National Association, as such agreement may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof.

                  "ACCOUNTING DATE" means, with respect to any Determination
Date, the close of business on the day immediately preceding such Determination
Date.

                  "ACCOUNTANTS' REPORT" means the report of a firm of nationally
recognized independent accountants described in SECTION 4.11 of the Sale and
Servicing Agreement.

                  "ACCRUAL PERIOD" means a calendar month; provided that the
initial Accrual Period shall be the period from and including the day after the
initial Cutoff Date to and including December 14, 2005.

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

                  "ADDITION NOTICE" means, with respect to any transfer of
Receivables to the Purchaser pursuant to SECTION 2.1 of the Sale and Servicing
Agreement, notice of the Seller's election to transfer Receivables to the
Purchaser, such notice to designate the related Funding Date and the aggregate
principal amount of Receivables to be transferred on such Funding Date,
substantially in the form of EXHIBIT G to the Sale and Servicing Agreement.

                  "ADVANCE" has the meaning set forth in paragraph 4 of the
recitals to the Note Purchase Agreement.

                  "ADVANCE AMOUNT" means an amount not less than $2,000,000 and
not more than the lesser of (i) the excess of the Maximum Invested Amount over
the Invested Amount as of such Funding Date and (ii) the excess of the Borrowing
Base over the Invested Amount as of such Funding Date.

                  "ADVANCE REQUEST" has the meaning set forth in Section 2.03(a)
of the Note Purchase Agreement.

                  "AFFILIATE" of any Person means any Person who directly or
indirectly controls, is controlled by, or is under direct or indirect common
control with such Person. For purposes of this definition, the term "CONTROL"
when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms
"controlling", "CONTROLLED BY" and "UNDER COMMON CONTROL WITH" have meanings
correlative to the foregoing.

                  "AMOUNT FINANCED" means, with respect to a Receivable, the
aggregate amount advanced under such Receivable toward the purchase price of the
Financed Vehicle and any related costs, including amounts advanced in respect of
accessories, insurance premiums, service and warranty contracts, other items
customarily financed as part of retail automobile installment sale contracts or
promissory notes, and related costs.

                  "ANNUAL PERCENTAGE RATE" or "APR" of a Receivable means the
annual percentage rate of finance charges or service charges, as stated in the
related Contract.

                  "APPLICABLE MARGIN" means 2.00%; provided that on any day on
which an Event of Default shall exist, the Applicable Margin shall be the
Default Applicable Margin.

                  "ASSIGNMENT" means an assignment from the Seller to the
Purchaser with respect to the Receivables and Other Conveyed Property to be
conveyed by the Seller to the Purchaser on any Funding Date, in substantially
the form of EXHIBIT F to the Sale and Servicing Agreement.

                                       50
<PAGE>

                  "ASSUMPTION DATE" has the meaning set forth in SECTION 10.3(A)
of the Sale and Servicing Agreement.

                  "AUTHORIZED OFFICER" means, with respect to the Servicer or
the Issuer, any officer or agent acting pursuant to a power of attorney of the
Servicer or the Issuer, as the case may be, who is authorized to act therefor
and who is identified on the list of Authorized Officers delivered by such
Person to the Trustee and the Note Purchaser on the Closing Date (as such list
may be modified or supplemented from time to time thereafter).

                  "AVAILABLE FUNDS" means, for each Settlement Date, the sum of
the following amounts with respect to the preceding Accrual Period, without
duplication: (i) all collections on the Receivables; (ii) all Net Liquidation
Proceeds received during the Accrual Period with respect to Liquidated
Receivables; (iii) the Purchase Amount of each Receivable repurchased by the
Seller or the Purchaser during such Accrual Period; (iv) Investment Earnings for
the related Settlement Date; (v) all amounts received pursuant to Receivable
Insurance Policies with respect to any Financed Vehicles; and (vi) cash received
from a Margin Call.

                   "BACKUP SERVICER" means Wells Fargo Bank, National
Association in its capacity as Backup Servicer pursuant to the terms of the
Servicing Assumption Agreement or such Person as shall have been appointed
Backup Servicer pursuant to Section 9.3(b) or 9.6 of the Sale and Servicing
Agreement.

                  "BACKUP SERVICING FEE" means (A) the fee payable to the Backup
Servicer so long as the Seller or any successor Servicer (other than the Backup
Servicer) is the Servicer, on each Settlement Date in the amount equal to $1,800
per monthly data transmission received by the Backup Servicer pursuant to
Section 4.14 of the Sale and Servicing Agreement and (B) any other amounts
payable to the Backup Servicer pursuant to the Fee Schedule.

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

                  "BASIC DOCUMENTS" means the Notes, the Indenture, the Sale and
Servicing Agreement, the Lockbox Agreement, the Note Purchase Agreement, the LLC
Agreement, each Assignment, the Pledge Agreement, the Servicing Assumption
Agreement, the Consent and Agreement, the Servicer Termination Side Letter, the
Account Control Agreement and other documents and certificates delivered in
connection therewith.

                  "BORROWING BASE" means, on any date of determination, the
lesser of (a) an amount equal to the product of (i) the aggregate Principal
Balance (as of such date of determination) of all Eligible Receivables less the
Excess Concentration Amount and (ii) 80.0%, and (b) an amount equal to the
product of (A) 85.0% and (B) the Market Value.

                  "BORROWING BASE CERTIFICATE" means, with respect to any
transfer of Receivables, the certificate of the Servicer setting forth the
calculation of the Borrowing Base, substantially in the form of EXHIBIT A to the
Note Purchase Agreement.

                  "BORROWING BASE DEFICIENCY" means, as of any date of
determination, the positive excess, if any, of the Invested Amount over the
Borrowing Base, after application of funds, if any, by the Trustee in reduction
of the Invested Amount as contemplated by Section 3.05 of the Note Purchase
Agreement.

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

                  "CASUALTY" means, with respect to a Financed Vehicle, the
total loss or destruction of such Financed Vehicle.

                  "CHANGE OF CONTROL" means a change resulting when (i) the
Seller no longer owns 100% of the membership interests in the Purchaser, (ii)
the Seller or the Purchaser merges or consolidates with, or sells all or
substantially all of its assets to any other Person, or (iii) any Unrelated
Person or any Unrelated Persons, acting together, that would constitute a Group

                                       51
<PAGE>

together with any Affiliates or Related Persons thereof (in each case also
constituting Unrelated Persons) shall at any time Beneficially Own more than 50%
of the aggregate voting power of all classes of Voting Stock of the Seller. As
used herein, (a) "Beneficially Own" shall mean "beneficially own" as defined in
Rule 13d-3 of the Exchange Act, or any successor provision thereto; provided,
however, that, for purposes of this definition, a Person shall not be deemed to
Beneficially Own securities tendered pursuant to a tender or exchange offer made
by or on behalf of such Person or any of such Person's Affiliates until such
tendered securities are accepted for purchase or exchange; (b) "Group" shall
mean a "group" for purposes of Section 13(d) of the Exchange Act; (c) "Unrelated
Person" shall mean at any time any Person other than the Seller or any of its
Subsidiaries and other than any trust for any employee benefit plan of the
Seller or any of its Subsidiaries; (d) "Related Person" shall mean any other
Person owning (1) 5% or more of the outstanding common stock of such Person, or
(2) 5% or more of the Voting Stock of such Person; and (e) "Voting Stock" of any
Person shall mean the capital stock or other indicia of equity rights of such
Person which at the time has the power to vote for the election of one or more
members of the Board of Directors (or other governing body) of such Person.

                  "CLEARING AGENCY" means an organization registered as a
"clearing agency" pursuant to Section 17A of the Exchange Act, or any successor
provision thereto. The initial Clearing Agency shall be The Depository Trust
Company.

                  "CLOSING DATE" means November 15, 2005.

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

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

                  "COLLECTION ACCOUNT" means the account designated as such,
established and maintained pursuant to SECTION 5.1 of the Sale and Servicing
Agreement.

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

                  "COMMITMENT" means the obligation of the Note Purchaser to
make Advances to the Issuer pursuant to the terms and subject to the conditions
of the Note Purchase Agreement and the other Basic Documents.

                  "COMMITMENT FEE" means, with respect to any Settlement Date,
for so long as no Funding Termination Event shall have occurred and be
continuing, a fee in an amount equal to the product of (a) one-twelfth, (b)
twenty-five basis point (0.25%) and (c) the excess, if any, of (i) the Maximum
Invested Amount over (ii) the daily average of the Invested Amount over the
immediately preceding Accrual Period set forth in the related Servicer's
Certificate as and to the extent verified by the Note Purchaser.

                  "CONCENTRATION LIMITS" means with respect to Eligible
Receivables:

                  (i) Eligible Receivables that are Section 341 Receivables
         shall not at any time represent more than 3% of the aggregate Principal
         Balance of Eligible Receivables;

                  (ii) Eligible Receivables the Obligors of which are
         contractually delinquent with respect to more than 10% of a Scheduled
         Receivable Payment by more than 30 days, but less than 46 days, shall
         not at any time represent more than 4% of the aggregate Principal
         Balance of Eligible Receivables;

                  (iii) Eligible Receivables originated under Seller's "First
         Time Buyer Program" and "Mercury/Delta Program" shall not at any time
         represent more than 15% of the aggregate Principal Balance of Eligible
         Receivables;

                  (iv) Seasoned Receivables shall not represent more than
         $3,000,000 in aggregate Principal Balance of the Eligible Receivables;

                                       52
<PAGE>

                  (v) Unless an Opinion of Counsel, in form and substance
         satisfactory to the Note Purchaser, has been delivered to the Trustee
         and the Note Purchaser addressing (i) the form of Contract used by
         Seller in such State and (ii) the security interest of the Trustee in
         the Financed Vehicles titled in such State in the absence of any
         retitling of such Financed Vehicles, Eligible Receivables originated in
         any one State shall not in the aggregate at any time represent more
         than 10% of the aggregate Principal Balance of Eligible Receivables;

                  "CONSENT AND AGREEMENT" means that Consent and Agreement dated
as of November 15, 2005, made by the Issuer, as such consent and agreement may
be amended, supplemented or otherwise modified from time to time in accordance
with the terms thereof,

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

                  "CONSUMER LAWS" means federal and State usury laws, the
Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit
Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade
Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board's
Regulations B and Z, the Servicemembers Civil Relief Act, the California
Military Reservist Relief Act, the Texas Consumer Credit Code, the California
Automobile Sales Finance Act, State adaptations of the National Consumer Act and
of the Uniform Consumer Credit Code and all other federal, State and local
consumer credit laws and equal credit opportunity and disclosure laws and
regulations thereunder.

                  "CONTRACT" means a motor vehicle retail installment sale
contract or installment promissory note or security agreement relating to the
sale or refinancing of new or used automobiles, light duty trucks, vans or
minivans, and other writings related thereto from time to time.

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

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

                  "CRAM DOWN LOSS" means, with respect to a Receivable, if a
court of appropriate jurisdiction in an insolvency proceeding shall have issued
an order reducing the amount owed on a Receivable or otherwise modifying or
restructuring Scheduled Receivable Payments to be made on a Receivable, an
amount equal to such reduction in the Principal Balance of such Receivable or
the reduction in the net present value (using as the discount rate the lower of
the contract rate or the rate of interest specified by the court in such order)
of the Scheduled Receivable Payments as so modified or restructured. A "CRAM
DOWN LOSS" shall be deemed to have occurred on the date such order is entered.

                  "CUTOFF DATE" means, with respect to a Receivable or
Receivables, the date specified as such for such Receivable or Receivables in
the Schedule of Receivables attached to the Sale and Servicing Agreement or to
the applicable Assignment.

                  "DATA TAPE FIELDS" has the meaning given such term in Section
2.1(b)(i) of the Sale and Servicing Agreement.

                  "DEALER" means, with respect to a Receivable, the seller of
the related Financed Vehicle, who originated and assigned such Receivable to the
Seller, which Dealer shall not be an Affiliate of the Seller (including, without
limitation, MFN Financial Corporation and TFC Enterprises, Inc.).

                                       53
<PAGE>

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

                  "DEFAULT APPLICABLE MARGIN" means 4.00%.

                  "DEFECTIVE RECEIVABLE" means a Receivable that is subject to
repurchase pursuant to SECTION 3.2 or SECTION 4.7 of the Sale and Servicing
Agreement.

                  "DEFINITIVE NOTE" has the meaning specified in SECTION 2.5(C)
to the Indenture.

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

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

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

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

                                       54
<PAGE>

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

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

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

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

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

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

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

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

                                       55
<PAGE>

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

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

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

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

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

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

                  "DEPOSIT ACCOUNT" means that deposit account established
pursuant to the Account Control Agreement.

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

                  "DOLLAR" means lawful money of the United States.

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

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

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

                                       56
<PAGE>

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

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

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

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

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

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

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

                  "ELIGIBLE RECEIVABLES" means, as of any date of determination,
Receivables (a) that have been originated or acquired by the Seller in
accordance with the Seller's Contract Purchase Guidelines; (b) that are secured
by a first-priority perfected security interest in the related Financed Vehicle;
(c) as to which the representations and warranties set forth in Section 3.1 of
the Sale and Servicing Agreement are true and correct; (d) that are not more
than 45 days past due with respect to more than 10% of the Scheduled Receivable
Payment as of such date of determination; (e) as to which the related Obligor
has not been the subject of a bankruptcy proceeding since the origination of the
Receivable (other than any Obligor the related Receivable of which is a Section
341 Receivable); (f) as to which the Servicer has not repossessed the related
Financed Vehicle or charged-off the related Contract; (g) that have not been
owned by the Purchaser and pledged to the Trustee for the benefit of the
Noteholders and Note Purchaser for more than 180 days; and (h) that have not
been otherwise rejected by the Note Purchaser, in its sole discretion, as a
result of deficiencies with respect to such Receivable discovered during the
Note Purchaser's due diligence review, prior to the related Funding thereof.

                  "ELIGIBLE SERVICER" means a Person approved to act as
"SERVICER" under the Sale and Servicing Agreement by the Note Purchaser.

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

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

                                       57
<PAGE>

                  "EXCESS CONCENTRATION AMOUNT" means the aggregate amount by
which (without duplication) the aggregate Principal Balance of Eligible
Receivables sold to the Purchaser under the Sale and Servicing Agreement exceeds
any of the Concentration Limits; provided, however, that in determining which
Receivables to exclude for purposes of complying with any Concentration Limit,
the Purchaser shall exclude Receivables starting with those having the most
oldest origination dates.

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

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

                  "FACILITY TERMINATION DATE" means the earlier of (a) the
Scheduled Maturity Date or (b) the date of the occurrence of an Event of
Default.

                  "FDIC" means the Federal Deposit Insurance Corporation.
                   -

                  "FEE SCHEDULE" means that certain notice captioned "Schedule
of Fees for CPS - Bear Stearns Warehouse" from Wells Fargo Bank, National
Association, as acknowledged by the Servicer as of November 15, 2005.

                  "FINANCED VEHICLE" means a new or used automobile, light
truck, van or minivan, together with all accessions thereto, securing an
Obligor's indebtedness under a Receivable.

                  "FUNDING DATE" means the Business Day on which an Advance
occurs.

                  "FUNDING TERMINATION EVENT" means the occurrence and
continuance of any one of the following events, unless waived in writing by the
Note Purchaser in its sole discretion: (i) an Event of Default; (ii) CPS is
terminated as servicer under any other warehouse financing facility or term
securitization transaction (other than any warehouse financing facility or term
securitization transaction as to which the receivables related thereto were
originated exclusively by SeaWest, TFC or MFN); (iii) failure by the Issuer or
the Servicer to accept a proposed assignee in accordance with Section
8.03(c)(iii) of the Note Purchase Agreement or (iv) Charles Bradley, Jr. shall
not hold the position of President of CPS.

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

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

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

                                       58
<PAGE>

                   "HOLDERS" or "NOTEHOLDERS" means the Persons in whose name
the Notes are registered on the Note Register, which shall initially be Bear,
Stearns International Limited or an Affiliate thereof.

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

                  "INDENTURE" means the Indenture dated as of November 15, 2005,
between the Issuer and Wells Fargo Bank, National Association, as Trustee, as
the same may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

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

                  "INELIGIBLE RECEIVABLE" means any Receivable other than an
Eligible Receivable.

                  "INITIAL ADVANCE" means the first Advance that is funded on or
after the Closing Date.

                  "INSOLVENCY EVENT" means, with respect to a specified Person,
(a) the institution of a proceeding or the filing of a petition against such
Person seeking the entry of a decree or order for relief by a court having
jurisdiction in the premises in respect of such Person or any substantial part
of its property in an involuntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, seeking
the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or ordering the winding-up or liquidation of such Person's
affairs, and such proceeding or petition, decree or order shall remain unstayed
or undismissed for a period of 60 consecutive days or an order or decree for the
requested relief is earlier entered or issued; or (b) the commencement by such
Person of a voluntary case under any applicable federal or state bankruptcy,
insolvency or other similar law now or hereafter in effect, or the consent by
such Person to the entry of an order for relief in an involuntary case under any
such law, or the consent by such Person to the appointment of or taking
possession by, a receiver, liquidator, assignee, custodian, trustee,
sequestrator, or similar official for such Person or for any substantial part of
its property, or the making by such Person of any general assignment for the
benefit of creditors, or the failure by such Person generally to pay its debts
as such debts become due, or the taking of action by such Person in furtherance
of any of the foregoing.

                   "INTEREST PERIOD" means, with respect to the Notes and any
Settlement Date, the period from, and including, the immediately preceding
Settlement Date (or from and including the Closing Date, in the case of the
first Settlement Date) to, but excluding, such Settlement Date.

                  "INVESTED AMOUNT" means, with respect to any date of
determination, the aggregate principal amount (including all Advance Amounts as
of such date) of the Notes at such date of determination.

                                       59
<PAGE>

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

                  "INVESTMENT EARNINGS" means, with respect to any Settlement
Date and any Pledged Account, the investment earnings on Pledged Account
Property and deposited into such Pledged Account during the related Accrual
Period pursuant to SECTION 5.1(D) of the Sale and Servicing Agreement.

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

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

                  "LIBOR" means, with respect to any Interest Period, the rate
for one-month deposits in U.S. dollars determined on the related LIBOR
Determination Date by the Note Purchaser by reference to the London Inter-Bank
Offered Rate, as such rate appears as "BBBAM - Page DE8 4a" on Bloomberg (or
such other publicly-available service or services publishing such rates selected
by Note Purchaser in its reasonable discretion and communicated to the Issuer)
at or about 11 a.m. New York City time; PROVIDED FURTHER, that if no rate
appears on Bloomberg, on any such date of determination LIBOR shall be
determined as follows:

                  LIBOR will be determined at approximately 11:00 a.m., New York
City time, on the related LIBOR Determination Date on the basis of (a) the
arithmetic mean of the rates at which one-month deposits in U.S. dollars are
offered to prime banks in the London interbank market by four (4) major banks in
the London interbank market selected by the Note Purchaser and in a principal
amount of not less than $150,000,000 that is representative for a single
transaction in such market at such time, if at least two (2) such quotations are
provided, or (b) if fewer than two (2) quotations are provided as described in
the preceding clause (a), the arithmetic mean of the rates, as requested by the
Note Purchaser, quoted by three (3) major banks in New York City, selected by
the Note Purchaser, at approximately 11:00 A.M., New York City time, on such
LIBOR Determination Date, one-month deposits in United States dollars to leading
European banks and in a principal amount of not less than $150,000,000 that is
representative for a single transaction in such market at such time.

                  "LIBOR BUSINESS DAY" means any day on which banks in London,
England and The City of New York are open and conducting transactions in foreign
currency and exchange.

                  "LIBOR DETERMINATION DATE" means, with respect to any Interest
Period, the second LIBOR Business Day immediately preceding the first day of
such Interest Period.

                  "LIEN" means a security interest, lien, charge, pledge,
equity, or encumbrance of any kind, other than tax liens, mechanics' liens and
any liens that attach to the respective Receivable by operation of law as a
result of an Obligor's failure to pay an obligation.

                  "LIEN CERTIFICATE" means, with respect to a Financed Vehicle,
an original certificate of title, certificate of lien or other notification
issued by the Registrar of Titles of the applicable state to a secured party
which indicates that the lien of the secured party on the Financed Vehicle is
recorded on the original certificate of title. In any jurisdiction in which the
original certificate of title is required to be given to the obligor, the term
"LIEN CERTIFICATE" shall mean only a certificate or notification issued to a
secured party.

                  "LIQUIDATED RECEIVABLE" means any Receivable (i) which has
been liquidated by the Servicer through the sale of the Financed Vehicle or (ii)
for which the related Financed Vehicle has been repossessed and 90 days have
elapsed since the date of such repossession or (iii) as to which an Obligor has
failed to make more than 90% of a Scheduled Receivable Payment of more than ten
dollars for 120 (or, if the related Financed Vehicle has been repossessed, 210)
or more days as of the end of a Accrual Period or (iv) with respect to which
proceeds have been received which, in the Servicer's judgment, constitute the
final amounts recoverable in respect of such Receivable. For purposes of this
definition, a Receivable shall be deemed a "Liquidated Receivable" upon the
first to occur of the events specified in items (i) through (iv) of the previous
sentence.

                                       60
<PAGE>

                  "LLC AGREEMENT" means the Limited Liability Company Agreement
of Page Three Funding, LLC dated as of October 27, 2005, entered into by CPS, as
such agreement may be amended, supplemented or otherwise modified from time to
time in accordance with the terms thereof.

                   "LOCKBOX ACCOUNT" means an account established and maintained
in the name of the Issuer for the benefit of Trustee for the further benefit of
the Noteholders and the Note Purchaser by the Lockbox Bank pursuant to SECTION
4.2(B) of the Sale and Servicing Agreement.

                  "LOCKBOX AGREEMENT" means the Multiparty Agreement Relating to
Lockbox Services, dated as of November 15, 2005, by and among the Lockbox
Processor, the Purchaser, the Servicer and the Trustee, as such agreement may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms thereof, unless the Trustee shall cease to be a party thereunder, or
such agreement shall be terminated in accordance with its terms, in which event
"LOCKBOX AGREEMENT" shall mean such other agreement, in form and substance
acceptable to the Note Purchaser, among the Servicer, the Purchaser, and the
Lockbox Processor and any other appropriate parties.

                  "LOCKBOX BANK" means as of any date a depository institution
named by the Servicer and acceptable to the Majority Noteholders and the Note
Purchaser at which the Lockbox Account is established and maintained as of such
date.

                  "LOCKBOX PROCESSOR" means Wells Fargo Bank, National
Association and its successors and assigns.

                  "MAJORITY NOTEHOLDERS" means Holders of Notes that in the
aggregate constitute more than 50% of the Percentage Interests.

                  "MARGIN CALL" has the meaning given to such term in Section
3.05 of the Note Purchase

Agreement.

                  "MARKET VALUE" means, on any Business Day, the value of the
Receivables as determined by the daily-run structured arb report as calculated
by the Note Purchaser in its sole discretion.

                  "MATERIAL ADVERSE CHANGE" means (a) in respect of any Person,
a material adverse change in (i) the business, financial condition, results of
operations, prospects or properties of such Person, or (ii) the ability of such
Person to perform its obligations under any of the Basic Documents to which it
is a party, in each case in a manner that materially and adversely affects the
Noteholders, the Note Purchaser or the value, collectibility or marketability of
the Notes, (b) in respect of any Receivable, a material adverse change in (i)
the value or marketability of such Receivable, or (ii) the probability that
amounts now or hereafter due in respect of such Receivable will be collected on
a timely basis, in each case in a manner that materially and adversely affects
the Noteholders, the Note Purchaser or the value, collectibility or
marketability of the Notes, or the ability of the Trustee on behalf of the
Noteholders and the Note Purchaser to realize the benefits of the security
afforded under the Basic Documents.

                  "MATERIAL ADVERSE EFFECT" means an effect on (a) the value or
marketability of the Receivables or any of the other Collateral (including,
without limitation, the enforceability or collectibility of the Receivables);
(b) the business, operations, properties, condition (financial or otherwise) or
prospects of the Seller, the Servicer, the Purchaser or the Issuer, in each
case, individually or taken as a whole; (c) the validity or enforceability of
this or any of the other Basic Documents or the rights or remedies of the
Trustee, the Note Purchaser or the Noteholders hereunder or thereunder or the

                                       61
<PAGE>

validity, perfection or priority of any Lien in favor of the Trustee, the Note
Purchaser or the Noteholders granted thereunder; (d) the timely payment of the
principal of or interest on any Advances or other amounts payable under the
Basic Documents; or (e) the ability of the Seller, the Servicer, the Purchaser
or the Issuer to perform its obligations under any Basic Document to which it is
a party, in each case that materially and adversely affects the Noteholders, the
Note Purchaser or the value, collectability or marketability of the Notes.

                  "MAXIMUM INVESTED AMOUNT" means  $150,000,000.

                  "MFN" means MFN Financial Corporation, a Delaware corporation.

                  "MINIMUM PLACEMENT FEE" means, for the Term, the product of
(i) 0.40% and (ii) $300,000,000 (representing the minimum amount of investment
grade notes to be placed by the Note Purchaser or any of its Affiliates on
behalf of CPS and its Affiliates prior to the Minimum Placement Fee Payment
Date), as such amount may reduced by amounts paid in respect of the Minimum
Placement Fee pursuant to Section 3.01(d) of the Note Purchase Agreement,
Section 5.8(a)(v) of the Sale and Servicing Agreement and Section 10.1 of the
Indenture.

                  "MINIMUM PLACEMENT FEE PAYMENT DATE" means the earliest to
occur of (a) the closing date for the second securitization of Eligible
Receivables contemplated by Section 3.01(d) of the Note Purchase Agreement, (b)
the date which occurs 15 calendar days immediately prior to the Scheduled
Maturity Date and (c) the Facility Termination Date.

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

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

                  "NET ACQUISITION FEE" means, for any Receivable, (a) the sum
of (i) PLAUSA3 and (ii) PLASFE less (b) PLTDIF, in each case, as reflected in
the Data Tape Fields delivered prior to each Funding Date pursuant to Section
2.1(b)(i) of the Sale and Servicing Agreement, which amount shall represent the
difference between the original Principal Balance of the related Receivable and
the amount paid by the Seller to the Dealer for such Receivable (without giving
effect to the Seller netting from such amount the first payment due with respect
to such Receivable).

                  "NET LIQUIDATION PROCEEDS" means, with respect to a Liquidated
Receivable, all amounts realized with respect to such Receivable net of (i)
reasonable expenses incurred by the Servicer in connection with the collection
of such Receivable and the repossession and disposition of the Financed Vehicle
and the reasonable cost of legal counsel with the enforcement of a Liquidated
Receivable and (ii) amounts that are required to be refunded to the Obligor on
such Receivable; PROVIDED, HOWEVER, that the Net Liquidation Proceeds with
respect to any Receivable shall in no event be less than zero.

                   "NOTES" means the Floating Rate Variable Funding Notes, each
substantially in the form of the Note set forth in EXHIBIT A-1 to the Indenture.

                  "NOTE DISTRIBUTION ACCOUNT" means the account designated as
such, established and maintained pursuant to SECTION 5.1(B) of the Sale and
Servicing Agreement.

                  "NOTE INTEREST RATE" means for any day during any Interest
Period the sum of (i) LIBOR calculated as of the related LIBOR Determination
Date and (ii) the Applicable Margin for such day; PROVIDED, HOWEVER, that the
Note Interest Rate will in no event be higher than the maximum rate permitted by
law.

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

                  "NOTE PURCHASE AGREEMENT" means the Note Purchase Agreement
dated as of November 15, 2005 among Bear, Stearns International Limited, the
Issuer, the Purchaser, the Seller and the Servicer, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof.

                                       62
<PAGE>

                  "NOTE PURCHASER" means Bear, Stearns International Limited and
its successors and permitted assigns.

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

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

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

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

                  "NOTEHOLDERS' PRINCIPAL DISTRIBUTABLE AMOUNT" means, with
respect to any Settlement Date (A) prior to the Facility Termination Date, the
Borrowing Base Deficiency, if any, and (B) upon and after the Facility
Termination Date, the aggregate outstanding principal amount of the Note.

                   "OBLIGOR" on a Receivable means the purchaser or
co-purchasers of the Financed Vehicle and any other Person who owes payments
under the Receivable.

                  "OFFICER'S CERTIFICATE" means a certificate signed by the
chairman of the board, the president, any vice chairman of the board, any vice
president, the treasurer, the controller or assistant treasurer or any assistant
controller, secretary or assistant secretary of the Seller, the Purchaser or the
Servicer, as appropriate.

                  "OPINION COLLATERAL" has the meaning set forth in Section
3.6(a) of the Indenture.

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

                   "OTHER CONVEYED PROPERTY" means all property conveyed by the
Seller to the Purchaser pursuant to SECTIONS 2.1 (A)(II) through (XI) of the
Sale and Servicing Agreement and Section 2 of each Assignment.

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

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

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

                                       63
<PAGE>

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

                  "PERCENTAGE INTEREST" means, with respect to any Note, the
percentage interest as specified on the face of such Note, which when multiplied
by the Invested Amount outstanding on any date of determination shall equal the
principal amount outstanding on such Note as of such date.

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

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

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

                  "PLEDGE AGREEMENT" means the Pledge and Security Agreement
dated as of November 15, 2005, among CPS and the Note Purchaser, as such
agreement may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof.

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

                  "PLEDGED ACCOUNTS" has the meaning assigned thereto in SECTION
5.1(C) of the Sale and Servicing Agreement.

                  "PLEDGED COLLATERAL" has the meaning assigned thereto in the
Pledge Agreement.

                  "POST-OFFICE BOX" means the separate post-office box
established and maintained by the Servicer in the name of the Purchaser for the
benefit of the Trustee for the further benefit of the Noteholders and the Note
Purchaser, established and maintained pursuant to SECTION 4.2 of the Sale and
Servicing Agreement.

                  "PRINCIPAL BALANCE" of a Receivable means the Amount Financed
minus the sum of the following amounts without duplication: (i) that portion of
all Scheduled Receivable Payments actually received on or prior to such day
allocable to principal using the Simple Interest Method; (ii) any Cram Down Loss
in respect of such Receivable; and (iii) any prepayment in full or any partial
prepayment applied to reduce the principal balance of the Receivable, all
measured as of the close of business on such day.

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

                  "PROGRAM" has the meaning specified in SECTION 4.11 of the
Sale and Servicing Agreement.

                   "PURCHASE AMOUNT" means, on any date with respect to a
Defective Receivable, the sum of (a) the Principal Balance of such Receivable as
of the date of purchase of such Receivable, and (b) all accrued and unpaid
interest on the Receivable.

                  "PURCHASE PRICE" means, with respect to each Receivable and
related Other Conveyed Property transferred to the Purchaser on the Closing Date
or on any Funding Date, an amount equal to the Principal Balance of such
Receivable as of the Closing Date or such Funding Date, as applicable.

                                       64
<PAGE>

                  "PURCHASED RECEIVABLE" means a Receivable purchased by the
Servicer pursuant to SECTION 4.7 of the Sale and Servicing Agreement or
repurchased by the Seller pursuant to SECTION 3.2 of the Sale and Servicing
Agreement.

                  "PURCHASER" means Page Three Funding LLC.

                  "PURCHASER PROPERTY" means the Receivables and Other Conveyed
Property, together with certain monies received after the related Cutoff Date,
the Receivables Insurance Policies, the Collection Account (including all
Eligible Investments therein and all proceeds therefrom), the Lockbox Account
and certain other rights under the Sale and Servicing Agreement.

                  "REALIZED LOSSES" means, with respect to any Receivable that
becomes a Liquidated Receivable, the excess of the Principal Balance of such
Liquidated Receivable over Net Liquidation Proceeds allocable to principal
thereof.

                  "RECEIVABLE" means each retail installment sale contract for a
Financed Vehicle which is listed on the Schedule of Receivables and all rights
and obligations thereunder, except for Receivables that shall have become
Purchased Receivables, and, for the avoidance of doubt, shall include all
Related Receivables (other than Related Receivables that shall have become
Purchased Receivables).

                  "RECEIVABLE FILES" means the documents specified in SECTION
3.3(A) of the Sale and Servicing Agreement.

                  "RECEIVABLES INSURANCE POLICY" means, with respect to a
Receivable, any insurance policy (including the insurance policies described in
SECTION 4.4 of the Sale and Servicing Agreement) benefiting the holder of the
Receivable providing loss or physical damage, credit life, credit accident,
health, credit disability, theft, mechanical breakdown or similar coverage with
respect to the Financed Vehicle or the Obligor, including without limitation any
GAP, vendor's single interest or other collateral protection insurance policy or
coverage;.

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

                  "REGISTRAR OF TITLES" means, with respect to any state, the
governmental agency or body responsible for the registration of, and the
issuance of certificates of title relating to, motor vehicles and liens thereon.

                  "RELATED RECEIVABLES" means, with respect to a Funding Date,
the Receivables listed on SCHEDULE A to the applicable Assignment executed and
delivered by the Seller with respect to such Funding Date.

                  "RELEASE REQUEST" has the meaning specified in SECTION 3.5 of
the Sale and Servicing Agreement.

                  "REPOSSESSED RECEIVABLE" means a Receivable with respect to
which the earliest of the following shall have occurred: (i) the date the
Financed Vehicle is actually repossessed and (ii) 30 days after the date the
Financed Vehicle is authorized for repossession.

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

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

                                       65
<PAGE>

                   "SALE AND SERVICING AGREEMENT" means the Sale and Servicing
Agreement dated as of November 15, 2005, among the Page Three Funding LLC, as
Purchaser and Issuer, CPS, as Seller and Servicer, and Wells Fargo Bank,
National Association, as the Backup Servicer and the Trustee, as the same may be
amended or supplemented from time to time in accordance with the terms thereof.

                  "SCHEDULED MATURITY DATE" means November 14, 2006 or such
later date as agreed upon pursuant to SECTION 2.05 of the Note Purchase
Agreement.

                  "SCHEDULED RECEIVABLE PAYMENT" means, with respect to any
Accrual Period for any Receivable, the amount set forth in such Receivable as
required to be paid by the Obligor in such Accrual Period. If after the Closing
Date, the Obligor's obligation under a Receivable with respect to an Accrual
Period has been modified so as to differ from the amount specified in such
Receivable (i) as a result of the order of a court in an insolvency proceeding
involving the Obligor, (ii) pursuant to the Servicemembers Civil Relief Act, or
(iii) as a result of modifications or extensions of the Receivable permitted by
Section 4.2 of the Sale and Servicing Agreement, the Scheduled Receivable
Payment with respect to such Accrual Period shall refer to the Obligor's payment
obligation with respect to such Accrual Period as so modified.

                  "SCHEDULE OF RECEIVABLES" means the schedule of all
Receivables purchased by the Purchaser pursuant to the Sale and Servicing
Agreement and each Assignment, which is attached as Schedule A to the Sale and
Servicing Agreement, as amended or supplemented from time to time upon each
Assignment of Receivables or in accordance with the terms of the Sale and
Servicing Agreement.

                  "SEASONED RECEIVABLE" shall mean an Eligible Receivable that
was sold to the Purchaser and pledged to the Trustee for the benefit of the
Noteholders and the Note Purchaser more than 31 days after the Seller's paid the
related Dealer for such Eligible Receivable.

                  "SEAWEST" means SeaWest Financial Corporation, a California
corporation.

         "SECTION 341 MEETING" means a meeting held pursuant to Section 341(a)
of the United States Bankruptcy Code (as the same may be amended from time to
time) in which an Obligor subject to a Insolvency Event under Chapter 7 of the
United States Bankruptcy Code has presented his/her plan to the bankruptcy court
and all of his/her creditors.

                  "SECTION 341 RECEIVABLE" means a Receivable, the Obligor of
which has completed a Section 341 Meeting as of the applicable Cutoff Date.

                  "SECURED OBLIGATIONS" means all amounts and obligations which
the Issuer or Purchaser may at any time owe under the Basic Documents to, or on
behalf of the Noteholders, the Note Purchaser and/or the Trustee for the benefit
of the Noteholders and the Note Purchaser.

                  "SECURED PARTIES" means each of the Noteholders, the Note
Purchaser and the Trustee for the benefit of the Noteholders and the Note
Purchaser, in respect of the Secured Obligations.

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

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

                  "SELLER'S CONTRACT PURCHASE GUIDELINES" means CPS's
established "Contract Purchase Guidelines", as the same may be amended from time
to time in accordance with Section 8.2(c) of the Sale and Servicing Agreement.

                  "SERVICER" means, initially, Consumer Portfolio Services,
Inc., as the servicer of the Receivables, and each successor Servicer pursuant
to SECTION 10.3 of the Sale and Servicing Agreement.

                                       66
<PAGE>

                  "SERVICER DELINQUENCY RATIO" means, as of the end of any
Accrual Period, a percentage equal to (i) the aggregate outstanding principal
balance as of the end of any Accrual Period of all automobile receivables
serviced by the Servicer or any Affiliate thereof (excluding automobile
receivables acquired or originated by MFN, TFC or SeaWest) as to which more than
10% of the scheduled receivable payment is more than 30 days contractually
delinquent as of the end of the immediately preceding Accrual Period, including
all receivables for which the related financed vehicle has been repossessed and
the proceeds thereof have not yet been realized by the Servicer divided by (ii)
the aggregate outstanding principal balance of all automobile receivables
serviced by the Servicer or any Affiliate thereof as of the end of the relevant
Accrual Period (excluding automobile receivables acquired or originated by MFN,
TFC or SeaWest).

                  "SERVICER EXTENSION NOTICE" has the meaning specified in
SECTION 4.15 of the Sale and Servicing Agreement.

                  "SERVICER LOSS RATIO" means, as of any date, the average of
the loss ratios (expressed as a percentage) for the three Accrual Periods
immediately preceding such date, as computed based on the methodology set forth
in the Servicer's then most recent report on Form 10-Q or Form 10-K, as
applicable, for calculation of net losses on automobile receivables originated
and serviced by the Servicer (excluding all automobile receivables originated or
acquired by MFN, TFC or SeaWest).

                  "SERVICER TERMINATION EVENT" means an event specified in
SECTION 10.1 of the Sale and Servicing Agreement.

                  "SERVICER TERMINATION SIDE LETTER" means the Servicer
Termination Side Letter dated November 15, 2005, from the Note Purchaser to the
Servicer, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with the terms thereof.

                  "SERVICER'S CERTIFICATE" means a certificate completed and
executed by a Servicing Officer and delivered pursuant to SECTION 4.9 of the
Sale and Servicing Agreement, substantially in the form of EXHIBIT A to the Sale
and Servicing Agreement.

                  "SERVICING ASSUMPTION AGREEMENT" means the Servicing
Assumption Agreement, dated as of November 15, 2005, among Consumer Portfolio
Services, Inc., as Seller and Servicer, the Backup Servicer and the Trustee, as
the same may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

                  "SERVICING FEE" has the meaning specified in SECTION 4.8 of
the Sale and Servicing Agreement.

                  "SERVICING FEE PERCENTAGE" means 2.50%, provided that if
Backup Servicer is the Servicer, the Servicing Fee Percentage shall be
determined in accordance with Servicing and Lockbox Processing Assumption
Agreement.

                  "SERVICING GUIDELINES" means CPS's established servicing
guidelines, as the same may be amended from time to time in accordance with
Section 9.1(k) of the Sale and Servicing Agreement.

                  "SERVICING OFFICER" means any Person whose name appears on a
list of Servicing Officers delivered to the Trustee and the Note Purchaser, as
the same may be amended, modified or supplemented from time to time.

                  "SETTLEMENT DATE" means, with respect to each Accrual Period,
the 15th day of the following calendar month, or if such day is not a Business
Day, the immediately following Business Day, commencing on December 15, 2005.

                  "SIMPLE INTEREST METHOD" means the method of allocating a
fixed level payment between principal and interest, pursuant to which the
portion of such payment that is allocated to interest is equal to the product of
the APR multiplied by the unpaid balance multiplied by the period of time
(expressed as a fraction of a year, based on the actual number of days in the
calendar month and the actual number of days in the calendar year) elapsed since
the preceding payment of interest was made and the remainder of such payment is
allocable to principal.

                  "SIMPLE INTEREST RECEIVABLE" means a Receivable under which
the portion of the payment allocable to interest and the portion allocable to
principal is determined in accordance with the Simple Interest Method.

                                       67
<PAGE>

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

                  "STATE" means any one of the 50 states of the United States of
America or the District of Columbia.

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

                  "TAXES" has the meaning set forth in SECTION 3.04 of the Note
Purchase Agreement.

                  "TERM" has the meaning set forth in SECTION 2.05 of the Note
Purchase Agreement.

                  "TERMINATION DATE" means the date on which the Trustee shall
have received payment and performance of all Secured Obligations and disbursed
such payments in accordance with the Basic Documents.

                  "TFC" means The Finance Company, Inc., a Virginia corporation.

                  "TRUST ESTATE" means all money, instruments, rights and other
property that are subject or intended to be subject to the lien and security
interest of the Indenture for the benefit of the Noteholders (including all
Collateral Granted to the Trustee) and the Note Purchaser, including all
proceeds thereof.

                  "TRUST RECEIPT" means a trust receipt in substantially the
form of EXHIBIT B to the Sale and Servicing Agreement.

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

                  "TRUSTEE FEE" means (A) the fee payable to the Trustee on each
Settlement Date in an amount equal to the greater of $2,000 and (b) one-twelfth
of 0.04% of the aggregate outstanding principal amount of the Notes on the first
day of the related Accrual Period, and (B) any other amounts payable to the
Trustee pursuant to the Fee Schedule, including Custodial Fees.

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

                                       68<PAGE>

EXHIBIT 10.11

         INDENTURE dated as of November 15, 2005, by and among PAGE THREE
FUNDING LLC, a Delaware limited liability company (the "ISSUER") and WELLS FARGO
BANK, NATIONAL ASSOCIATION, a national banking association, as trustee (the
"TRUSTEE").

         Each party agrees as follows for the benefit of the other parties and
for the benefit of the Note Purchaser and each Holder of the Issuer's Variable
Funding Notes (the "NOTES"):

         To secure the payment of principal of and interest on, and any other
amounts owing in respect of the Notes and the other Secured Obligations, and to
secure compliance with this Indenture, the Issuer has agreed to pledge the
Collateral (as defined below) as collateral to the Trustee for the benefit of
the Noteholders and the Note Purchaser.

         As security for the performance by the Issuer of the Secured
Obligations, the Issuer has agreed to assign the Collateral (as defined below)
as collateral to the Trustee for the benefit of the Noteholders and the Note
Purchaser.

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Trustee on each Funding Date, as
Trustee for the benefit of the Noteholders and the Note Purchaser, all right,
title and interest of the Issuer, whether now existing or hereafter arising, in
and to the following;

         (a) the Receivables listed in the Schedule of Receivables and each
Addition Notice;

         (b) all monies received under the Receivables after the related Cutoff
Date and all Net Liquidation Proceeds received with respect to the Receivables
on and after the related Cutoff Date;

         (c) the security interests in the Financed Vehicles and any accessions
thereto granted by Obligors pursuant to the related Contracts and any other
interest of the Issuer in such Financed Vehicles, including, without limitation,
the certificates of title or, with respect to such Financed Vehicles in the
States listed in Annex B to the Sale and Servicing Agreement, other evidence of
title issued by the applicable Department of Motor Vehicles or similar authority
in such States, with respect to such Financed Vehicles;

         (d) any proceeds from claims on any Receivables Insurance Policies or
certificates relating to the Financed Vehicles securing the Receivables or the
Obligors thereunder;

         (e) all proceeds from recourse against Dealers with respect to the
Receivables and all other rights (but none of the obligations) of the Seller
under any agreements with Dealers;

         (f) refunds for the costs of extended service contracts with respect to
Financed Vehicles securing Receivables, refunds of unearned premiums with
respect to credit life and credit accident and health insurance policies or
certificates covering an Obligor or Financed Vehicle under a Receivable or his
or her obligations with respect to a Financed Vehicle and any recourse to
Dealers for any of the foregoing;

<PAGE>

         (g) the Receivable File related to each Receivable and all other
documents that the Issuer keeps on file in accordance with its customary
procedures relating to the Receivables, for Obligors of the Financed Vehicles;

         (h) all amounts and property from time to time held in or credited to
the Collection Account, the Note Distribution Account and the Lockbox Account;

         (i) all property (including the right to receive future Net Liquidation
Proceeds) that secures a Receivable that has been acquired by or on behalf of
the Seller, the Purchaser or the Issuer pursuant to a liquidation of such
Receivable;

         (j) all of the rights and benefits (but none of the obligations of the
Issuer) under the Sale and Servicing Agreement and all other Basic Documents,
including a direct right to cause the Seller to purchase Receivables from the
Issuer pursuant to the Sale and Servicing Agreement under the circumstances
specified therein;

         (k) the Note Purchase Agreement (to the extent of the Issuer's rights
against, but not including any of its obligations to, the Servicer);

         (l) the proceeds from any Servicer's errors and omissions policy or
fidelity bond, to the extent that such proceeds relate to any Receivable,
Financed Vehicle or other Collateral; and

         (m) all present and future claims, demands, causes and choses in action
in respect of any or all of the foregoing and all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any or all of the
foregoing, including all proceeds of the conversion, voluntary or involuntary,
into cash or other liquid property, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts,
insurance proceeds, condemnation awards, rights to payment of any and every kind
and other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing (collectively, the property described in this Granting
Clause, the "COLLATERAL").

         The foregoing Grant is made in trust to the Trustee, for the benefit of
the Noteholders and the Note Purchaser, to secure the payment of principal of
and interest on, and any other amounts owing in respect of the Notes, to secure
the payment of all Secured Obligations and to secure compliance with this
Indenture. The Trustee hereby acknowledges such Grant, accepts the trusts under
this Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties as required in this Indenture.

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

         SECTION 1.1 DEFINITIONS.

         Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in Annex A to the Sale and Servicing
Agreement dated as of November 15, 2005 among the Issuer, the Seller, the
Servicer, the Purchaser, the Backup Servicer and the Trustee, as the same may be
amended or supplemented from time to time (the "SALE AND SERVICING AGREEMENT").

                                       -2-
<PAGE>

         SECTION 1.2 [RESERVED].

         SECTION 1.3 OTHER DEFINITIONAL PROVISIONS.

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

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

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

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

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

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

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

                                       -3-
<PAGE>

                                   ARTICLE II

                                    THE NOTES

         SECTION 2.1 FORM. The Notes, together with the Trustee's certificate of
authentication, shall be in substantially the form set forth in EXHIBIT A, with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon
as may, consistently herewith, be determined by the officers executing the
Notes, as evidenced by their execution of the Notes. Any portion of the text of
the Notes may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Notes. The Notes will be issued on the Closing Date
which Notes shall be subject to Advances and prepayments from time to time in
accordance with SECTION 2.11 and ARTICLE X, respectively.

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

         (b) The terms of the Notes set forth in EXHIBIT A are part of the terms
of this Indenture.

         SECTION 2.2 EXECUTION, AUTHENTICATION AND DELIVERY. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

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

         (b) The Trustee shall upon receipt of an Issuer Order for
authentication and delivery, authenticate and deliver the Notes for original
issue in an aggregate principal amount up to, but not in excess of, the Maximum
Invested Amount.

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

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

         SECTION 2.3 [RESERVED]

         SECTION 2.4 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE. The
Issuer shall cause the Trustee to keep a register (the "NOTE REGISTER") in
which, subject to such reasonable regulations as it may prescribe and subject to
the provisions of Section 2.5, the Trustee shall provide for the registration of
the Notes, and the registration of transfers and exchanges of the Notes. The
Trustee shall be "NOTE REGISTRAR" for the purpose of registering the Notes and
transfers of the Notes as herein provided. Upon any resignation or removal of
any Note Registrar, the Issuer shall promptly appoint a successor.

                                       -4-
<PAGE>

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

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

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

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

         (e) Every Note presented or surrendered for registration of transfer or
exchange shall be (i) duly endorsed by, or accompanied by a written assignment
in substantially the form attached to EXHIBIT A duly executed by, the Holder
thereof or such Holder's attorney, duly authorized in writing, with such
signature guaranteed by an "ELIGIBLE GUARANTOR INSTITUTION" meeting the
requirements of the Note Registrar which requirements include membership or
participation in Securities Transfer Agents Medallion Program ("STAMP") or such
other "SIGNATURE GUARANTEE PROGRAM" as may be determined by the Note Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended, and (ii) accompanied by such other
documents as the Trustee may require.

         (f) No service charge shall be made to a Holder for any registration of
transfer or exchange of a Note, but the Note Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange of a Note, other
than exchanges pursuant to SECTION 9.6 not involving any transfer.

                                      -5-
<PAGE>

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

         SECTION 2.5 RESTRICTIONS ON TRANSFER AND EXCHANGE.

         (a) No transfer of a Note shall be made unless the transferor thereof
has provided a representation letter substantially in the form of EXHIBIT B that
such transfer is (i) to the Issuer or an Affiliate of the Issuer, or (ii) in
compliance with Section 2.5(b) hereof, to a qualified institutional buyer (as
defined in Rule 144A under the Securities Act) in a transaction meeting the
requirements of Rule 144A under the Securities Act, or (iii) in compliance with
Section 2.5(c) hereof, (A) to an institutional investor that is an "ACCREDITED
INVESTOR" as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D
promulgated under the Securities Act, or (iv) in a transaction complying with or
exempt from the registration requirements of the Securities Act and in
accordance with any applicable securities laws of any state of the United States
or any other jurisdiction; PROVIDED, that (except with respect to the transfer
of the Note or Advance made by the Noteholder), in the case of CLAUSES (IV) the
Trustee or the Issuer may require an Opinion of Counsel to the effect that such
transfer may be effected without registration under the Securities Act, which
Opinion of Counsel, if so required, shall be addressed to the Issuer and the
Trustee and shall be secured at the expense of the Holder. Each prospective
purchaser by its acquisition of a Note, acknowledges that such Note will contain
a legend substantially to the effect set forth in SECTION 2.5(E) (unless the
Issuer determines otherwise in accordance with applicable law).

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

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

                                      -6-
<PAGE>

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

         (d) The Note Registrar shall not register any transfer or exchange of
any Note to the extent that upon such transfer or exchange there would be more
than four (4) Noteholders then reflected on the Note Register.

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

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

                                      -7-
<PAGE>

THE NOTE REGISTRAR SHALL NOT REGISTER ANY TRANSFER OR EXCHANGE OF THIS NOTE TO
THE EXTENT THAT UPON SUCH TRANSFER OR EXCHANGE THERE WOULD BE MORE THAN FOUR (4)
NOTEHOLDERS THEN REFLECTED ON THE NOTE REGISTER.

         SECTION 2.6 MUTILATED, DESTROYED, LOST OR STOLEN NOTE. If (i) any
mutilated Note is surrendered to the Trustee, or the Trustee receives evidence
to its satisfaction of the destruction, loss or theft of any Note, and (ii)
there is delivered to the Trustee such security or indemnity as may be required
by it to hold the Issuer and the Trustee harmless, then, in the absence of
notice to the Issuer, the Note Registrar or the Trustee that such Note has been
acquired by a protected purchaser, and, provided that the requirements of
Section 8-405 and 8-406 of the UCC are met, the Issuer shall execute, and upon
request by the Issuer, the Trustee shall authenticate and deliver in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Note, a
replacement Note; PROVIDED, HOWEVER, that if any such destroyed, lost or stolen
Note, but not a mutilated Note, shall have become, or within seven days shall
be, due and payable or shall have been called for redemption, instead of issuing
a replacement Note, the Issuer may direct the Trustee, in writing, to pay such
destroyed, lost or stolen Note when so due or payable without surrender thereof.
If, after the delivery of such replacement Note or payment of a destroyed, lost
or stolen Note pursuant to the preceding sentence, a protected purchaser of the
original Note in lieu of which such replacement Note was issued, presents for
payment such original Note, the Issuer and the Trustee shall be entitled to
recover such replacement Note (or such payment) from the Person to whom it was
delivered or any assignee of such Person, except a protected purchaser, and
shall be entitled to recover upon the security or indemnity provided therefor to
the extent of any loss, damage, cost or expense incurred by the Issuer or the
Trustee in connection therewith.

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

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

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

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

                                      -8-
<PAGE>

         SECTION 2.8 PAYMENT OF PRINCIPAL AND INTEREST; DEFAULTED INTEREST.

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

         (b) The outstanding principal balance of the Notes and all accrued and
unpaid interest thereon shall be payable in full by the Facility Termination
Date and otherwise as provided in Section 3.1, the form of Note attached hereto
as EXHIBIT A, and the Sale and Servicing Agreement. The principal amount
outstanding under any Note at any time shall be equal to the product of the
Percentage Interest represented by such Note and the then outstanding Invested
Amount. All principal payments on the Notes shall be made pro rata to the
Noteholders entitled thereto based on their respective Percentage Interests.
Upon written notice from the Issuer, the Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date
preceding the Settlement Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such notice
shall be transmitted by facsimile prior to such final Settlement Date and shall
specify that such final installment will be payable only upon presentation and
surrender of such Note and shall specify the place where such Note may be
presented and surrendered for payment of such installment.

         (c) If the Issuer defaults in any payment of interest on a Note, the
Issuer shall pay defaulted interest (plus interest on such defaulted interest to
the extent lawful) at the Note Interest Rate then in effect (calculated for this
purpose using the Default Applicable Margin) in any lawful manner. The Issuer
shall pay such defaulted interest to the Noteholders on the immediately
following Settlement Date. At least three (3) days before any such Settlement
Date, the Issuer shall mail to the Noteholders and the Trustee a notice that
states the Settlement Date and the amount of defaulted interest to be paid.

         SECTION 2.9 CANCELLATION. Any Note surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be promptly
canceled by the Trustee. The Issuer may at any time deliver to the Trustee for
cancellation any Note previously authenticated and delivered hereunder which the
Issuer may have acquired in any manner whatsoever, and the Note so delivered
shall be promptly canceled by the Trustee. No Note shall be authenticated in

                                      -9-
<PAGE>

lieu of or in exchange for any Note canceled as provided in this Section, except
as expressly permitted by this Indenture. A canceled Note may be held or
disposed of by the Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Order that they be destroyed or returned to it; PROVIDED that such Issuer Order
is timely and such Note has not been previously disposed of by the Trustee.

         SECTION 2.10 RELEASE OF COLLATERAL. Subject to the terms of the other
Basic Documents and SECTIONS 10.1 and 11.1, the Trustee shall, on or after the
Termination Date, release any remaining portion of the Trust Estate from the
lien created by this Indenture and deposit in the Collection Account any funds
then on deposit in any other Pledged Account. In addition, the Trustee shall
release Ineligible Receivables from the lien created by this Indenture upon any
dividend of such Ineligible Receivables that is permitted under Section 5.10 of
the Sale and Servicing Agreement. The Trustee shall release property from the
lien created by this Indenture pursuant to this SECTION 2.10 only upon receipt
of an Issuer Request accompanied by an Officer's Certificate meeting the
applicable requirements of SECTION 11.1.

         SECTION 2.11 AMOUNT LIMITED; ADVANCES.

         The maximum aggregate principal amount of the Notes that may be
authenticated and delivered and Outstanding at any time under this Indenture
(except for Notes authenticated and delivered pursuant to SECTION 2.6 in
replacement for destroyed, lost or stolen Notes) is limited to the Maximum
Invested Amount.

         On each Business Day prior to the Facility Termination Date that is a
Funding Date, and upon the satisfaction of all conditions precedent to (a) the
funding of an Advance and (b) the purchase of Receivables, in each case as set
forth in Section 2.1(b) of the Sale and Servicing Agreement, and Section 6.02
and Section 6.03 of the Note Purchase Agreement, the Issuer shall be entitled to
borrow additional funds pursuant to an Advance made by the Note Purchaser on
such Funding Date, in accordance with Section 2.02 and Section 2.03 of the Note
Purchase Agreement, in an aggregate principal amount equal to the Advance Amount
(subject to the Maximum Invested Amount) with respect to such Funding Date. Each
request by the Issuer for an Advance shall include a certification by the Issuer
as to the satisfaction of the conditions specified in the previous sentence.

         The aggregate outstanding principal amount of the Notes may be
increased (subject to the Maximum Invested Amount) through the funding of the
Advances. Each Advance and corresponding Advance Amount shall be recorded by the
Note Purchaser, and the Note Purchaser's record (which may be in electronic or
other form in the Note Purchaser's reasonable discretion) shall show all Advance
Amounts and prepayments. Absent manifest error, such record of the Note
Purchaser shall be dispositive with respect to the determination of the
outstanding principal amount of the Notes. The Notes (i) can be funded by
Advances on any Funding Date in a minimum amount of $2,000,000 and any higher
amount (subject to the Maximum Invested Amount), and (ii) subject to subsequent
Advances pursuant to this SECTION 2.11, are subject to prepayment in whole or in
part, at the option of the Issuer as provided in ARTICLE X herein. In addition,
and independent of optional prepayments pursuant to ARTICLE X, in the event that
an Borrowing Base Deficiency exists on any date of determination as determined
by the Note Purchaser in its sole discretion, the Issuer shall on the same
Business Day of the receipt of notice from the Note Purchaser (or if notice is
received after 10:01 a.m. New York time, then on the next Business Day), prepay
the Invested Amount by an amount equal to such Borrowing Base Deficiency by
paying such amount to or at the direction of the Note Purchaser.

                                      -10-
<PAGE>

                                  ARTICLE III
                                    COVENANTS

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

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

         SECTION 3.3 MONEY FOR PAYMENTS TO BE HELD IN TRUST. On or before each
Settlement Date, the Trustee shall deposit or cause to be deposited in the Note
Distribution Account from the Collection Account an aggregate sum sufficient to
pay the amounts then becoming due under the Note, such sum to be held in trust
for the benefit of the Persons entitled thereto. Except as provided in SECTION
3.3(C) hereof, all payments of amounts due and payable with respect to the Notes
that are to be made from amounts withdrawn from the Note Distribution Account
shall be made on behalf of the Issuer by the Trustee or by the Note Paying
Agent, and no amounts so withdrawn from the Note Distribution Account for
payment of the Notes shall be paid to the Issuer.

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

                                      -11-
<PAGE>

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

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

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

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

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

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

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

                                      -12-
<PAGE>

         SECTION 3.4 EXISTENCE. Except as otherwise permitted by the provisions
of SECTION 3.10, the Issuer will keep in full effect its existence, rights and
franchises as a limited liability company under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Note, the Collateral and each other
instrument or agreement included in the Trust Estate.

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

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

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

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

                  (iv) enforce any of the Collateral;

                  (v) preserve and defend title to the Trust Estate and the
         rights of the Trustee, the Noteholders and the Note Purchaser in such
         Trust Estate against the claims of all persons and parties; and

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

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

         Subject to Section 4.5 of the Sale and Servicing Agreement, the Issuer
hereby authorizes the Note Purchaser, the Trustee and their respective agents to
file such financing statements and continuation statements and take such other
actions as the Note Purchaser or the Trustee may deem advisable in connection
with the security interest granted by the Issuer under the Indenture to the
extent permitted by applicable law. Any such financing statements and
continuation statements shall be prepared by the Issuer.

                                      -13-
<PAGE>

         SECTION 3.6 OPINIONS AS TO TRUST ESTATE.

         (a) On the Closing Date, the Issuer shall furnish to the Trustee an
Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording and filing of this
Indenture, any indentures supplemental hereto, and any other requisite
documents, and with respect to the execution and filing of any financing
statements and continuation statements, as are necessary to perfect and make
effective the first priority lien and security interest in favor of the Trustee,
for the benefit of the Noteholders and the Note Purchaser, created by this
Indenture in the Receivables and such other items of Collateral that the Note
Purchaser may reasonably request be the subject of such opinion (the "Opinion
Collateral") and reciting the details of such action, or stating that, in the
opinion of such counsel, no such action is necessary to make such lien and
security interest effective.

         (b) Within 90 days after the beginning of each calendar year, beginning
in 2006, the Issuer shall furnish to the Trustee and the Note Purchaser an
Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as are necessary to maintain
the lien and security interest created by this Indenture in the Receivables and
reciting the details of such action or stating that in the opinion of such
counsel no such action is necessary to maintain such lien and security interest.
Such Opinion of Counsel shall also describe any action necessary (as of the date
of such opinion) to be taken in the following year to maintain the lien and
security interest of this Indenture in the Receivables.

         SECTION 3.7 PERFORMANCE OF OBLIGATIONS; SERVICING OF RECEIVABLES. The
Issuer will not take any action and will use its best efforts not to permit any
action to be taken by others that would release any Person from any of such
Person's material covenants or obligations under any instrument or agreement
included in the Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of or impair the validity
or effectiveness of, any such instrument or agreement, except as ordered by any
bankruptcy or other court or as expressly provided in this Indenture, the other
Basic Documents or such other instrument or agreement.

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

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

                                      -14-
<PAGE>

         (c) If a responsible officer of the Issuer shall have written notice or
actual knowledge of the occurrence of a Default, an Event of Default, a Servicer
Termination Event or Funding Termination Event under the Sale and Servicing
Agreement, the Issuer shall promptly notify the Trustee, the Note Purchaser and
the Noteholders thereof in accordance with SECTION 11.4, and shall specify in
such notice the action, if any, the Issuer is taking in respect of such default.
If a Servicer Termination Event or Funding Termination Event shall arise from
the failure of the Servicer to perform any of its duties or obligations under
the Sale and Servicing Agreement with respect to the Receivables, the Issuer
shall take all reasonable steps available to it to remedy such failure.

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

         SECTION 3.8 NEGATIVE COVENANTS. So long as any Note is Outstanding, the
Issuer shall not:

                  (i) except as expressly permitted by this Indenture or the
         other Basic Documents, sell, transfer, exchange or otherwise dispose of
         any of the properties or assets of the Issuer, including those included
         in the Trust Estate, unless directed to do so by the Majority
         Noteholders and the Note Purchaser or the Majority Noteholders and the
         Note Purchaser have approved such disposition;

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

                  (iii) (A) permit the validity or effectiveness of this
         Indenture to be impaired, or permit the lien in favor of the Trustee
         for the benefit of the Noteholders and the Note Purchaser created by
         this Indenture to be amended, hypothecated, subordinated, terminated or
         discharged, or permit any Person to be released from any covenants or
         obligations under this Indenture or any other Basic Document except as
         may be expressly permitted hereby or thereby, (B) permit any lien,
         charge, excise, claim, security interest, mortgage or other encumbrance
         (other than the lien of this Indenture) to be created on or extend to
         or otherwise arise upon or burden the Trust Estate, any Collateral or
         any part thereof or any interest therein or the proceeds thereof (other
         than tax liens, mechanics' liens and other liens that arise by
         operation of law, in each case on a Financed Vehicle and arising solely
         as a result of an action or omission of the related Obligor), (C)
         permit the lien of this Indenture not to constitute a valid first
         priority (other than with respect to any such tax, mechanics' or other
         lien) perfected security interest in the Trust Estate or any Collateral
         or (D) amend, modify or fail to comply with the provisions of any of
         the Basic Documents without the prior written consent of the Note
         Purchaser and the Majority Noteholders.

                                      -15-
<PAGE>

         SECTION 3.9 ANNUAL STATEMENT AS TO COMPLIANCE. The Issuer will deliver
to the Trustee, the Noteholders and the Note Purchaser on or before March 31 of
each year, beginning March 31, 2006 an Officer's Certificate, dated as of
December 31 of the preceding year, stating, as to the Authorized Officer signing
such Officer's Certificate, that:

                  (i) a review of the activities of the Issuer during the
         preceding year (or portion of such year from the initial Funding Date
         through December 31, 2005) and of performance under this Indenture has
         been made under such Authorized Officer's supervision; and

                  (ii) to the best of such Authorized Officer's knowledge, based
         on such review, the Issuer has complied with all conditions and
         covenants under this Indenture throughout such year (or portion of such
         year from the initial Funding Date through December 31, 2005) and no
         event has occurred and is continuing which is, or after notice or lapse
         of time or both would become, an Event of Default, or, if there has
         been a default in the compliance of any such condition or covenant,
         specifying each such default known to such Authorized Officer and the
         nature and status thereof.

         SECTION 3.10 ISSUER MAY CONSOLIDATE, ETC. ONLY WITH CONSENT. The Issuer
shall not consolidate or merge with or into any other Person, or convey or
transfer all or substantially all of its properties to any Person without the
prior written consent of the Note Purchaser and the Majority Noteholders.

         SECTION 3.11 SUCCESSOR OR TRANSFEREE. Upon any consolidation or merger
of the Issuer with the prior written consent of the Note Purchaser and the
Majority Noteholders in accordance with SECTION 3.10, the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, and be
obligated to meet the requirements of the Issuer under this Indenture and the
other Basic Documents with the same effect as if such Person had been named as
the Issuer herein.

                  (b) Upon a conveyance or transfer of all the assets and
         properties of the Issuer with the prior written consent of the Note
         Purchaser and the Majority Noteholders in accordance with SECTION 3.10,
         the Issuer will be released from every covenant and agreement of this
         Indenture to be observed or performed on the part of the Issuer with
         respect to the Notes immediately upon the delivery of written notice to
         the Trustee, the Note Purchaser and the Noteholders stating that the
         Issuer is to be so released.

         SECTION 3.12 NO OTHER BUSINESS. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing the
Related Receivables in the manner contemplated by this Indenture and the other
Basic Documents and activities incidental thereto. After the Facility
Termination Date, the Issuer shall not purchase any additional Receivables.

                                      -16-
<PAGE>

         SECTION 3.13 NO BORROWING. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Note, and (ii) any other Indebtedness permitted
by or arising under the Basic Documents. The proceeds of the Notes shall be used
solely to fund the Issuer's purchase of the Related Receivables and the other
assets specified in the Sale and Servicing Agreement and to pay the Issuer's
organizational, transactional and start-up expenses.

         SECTION 3.14 SERVICER'S OBLIGATIONS. The Issuer shall cause the
Servicer to comply with Sections 4.9, 4.10, 4.11 and 5.9 of the Sale and
Servicing Agreement.

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

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

         SECTION 3.17 COMPLIANCE WITH LAWS. The Issuer shall comply with the
requirements of all applicable laws, including, without limitation, Consumer
Laws.

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

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

                                      -17-
<PAGE>

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

         SECTION 3.21 AMENDMENTS OF SALE AND SERVICING AGREEMENT. The Issuer
shall not agree to any amendment to Section 11.1 of the Sale and Servicing
Agreement to eliminate the requirements thereunder that the Trustee, the Note
Purchaser and the Majority Noteholders consent to amendments thereto as provided
therein.

         SECTION 3.22 INCOME TAX CHARACTERIZATION. It is the intent of the
Issuer and the Noteholders that, for Federal, state and local income and
franchise tax purposes, the Notes will evidence indebtedness of the Issuer
secured by the Collateral. Each Noteholder, by its acceptance of a Note, agrees
to treat such Note for Federal, state and local income and franchise tax
purposes as indebtedness of the Issuer.

         SECTION 3.23 SEPARATE EXISTENCE OF THE ISSUER. During the term of the
Indenture, the Issuer shall observe and comply with the applicable legal
requirements for the recognition of the Issuer as a legal entity separate and
apart from its Affiliates, including without limitation, those requirements set
forth in Section 9(b) of the Issuer's Limited Liability Company Agreement.

         SECTION 3.24 AMENDMENT OF ISSUER'S ORGANIZATIONAL DOCUMENTS. During the
term of the Indenture, the Issuer shall not amend its Limited Liability Company
Agreement except in accordance with the provisions thereof and with the prior
written consent of the Note Purchaser and the Majority Noteholders.

         SECTION 3.25 OTHER AGREEMENTS. The Issuer shall not enter into any
agreement that does not contain non-petition or limited recourse language
acceptable to the Note Purchaser with respect to the Issuer.

         SECTION 3.26 RULE 144A INFORMATION. At any time when the Issuer is not
subject to Section 13 or 15(d) of the Securities Exchange Act of 1934, as
amended, upon the request of a Noteholder, the Issuer shall promptly furnish to
such Noteholder or to a prospective purchaser of a Note designated by such
Noteholder, as the case may be, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act ("Rule 144A Information")
in order to permit compliance by such Noteholder with Rule 144A in connection
with the resale of a Note by such Noteholder; provided, however, that the Issuer
shall not be required to furnish Rule 144A Information in connection with any
request made on or after the date which is three years from the later of (i) the
most recent renewal of the term of the Commitment pursuant to Section 2.05 of
the Note Purchase Agreement, (ii) the date such Note (or any predecessor Note)
was acquired from the Issuer or (iii) the date such Note (or any predecessor
Note) was last acquired from an "affiliate" of the Issuer within the meaning of
Rule 144 under the Securities Act; and provided further that the Issuer shall
not be required to furnish such information at any time to a prospective
purchaser located outside of the United States who is not a "United States
Person" within the meaning of Regulation S under the Securities Act if such Note
may then be sold to such prospective purchaser in accordance with Rule 904 under
the Securities Act (or any successor provision thereto).

                                      -18-
<PAGE>

         SECTION 3.27 CHANGE OF CONTROL. CPS will and shall at all times be the
legal and beneficial owner of all of the issued and outstanding membership
interests of the Issuer.

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

         SECTION 4.1 SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of the Noteholders to receive
payments of principal thereof and interest thereon and rights of the Note
Purchaser to receive payments in respect of amounts owed by the Issuer to the
Note Purchaser under the Basic Documents, (iv) SECTIONS 3.3, 3.4, 3.5, 3.6, 3.8,
3.10, 3.11, 3.18, 3.19, 3.20, 3.21, 3.23, 3.24 and 11.17, (v) the rights,
obligations and immunities of the Trustee hereunder (including the rights of the
Trustee under SECTION 6.7 and the obligations of the Trustee under SECTION 4.2)
and (vi) the rights of the Noteholders and the Note Purchaser as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to all
or any of them, and the Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

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

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

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

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

                                      -19-
<PAGE>

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

                                   ARTICLE V
                                    REMEDIES

         SECTION 5.1 EVENTS OF DEFAULT.

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

                  (i) default in the payment of any interest or principal on the
         Notes or any other amount due with respect to the Notes or any amount
         due to the Note Purchaser under any Basic Document when the same
         becomes due and payable, which default continues for a period of one
         (1) Business Day;

                  (ii) failure by the Issuer, the Servicer or the Seller to
         perform or observe any term, covenant, or agreement under this
         Indenture or any other Basic Document (other than any term, covenant or
         agreement referred to in another subparagraph hereof), which failure
         materially and adversely affects the rights of the Note Purchaser
         and/or the Noteholders (as determined by the Note Purchaser or the
         Majority Noteholders in their sole discretion) and is not cured within
         30 calendar days after written notice is received by the Issuer, the
         Servicer or the Seller, as applicable, from the Trustee, the Note
         Purchaser or a Noteholder or after discovery of such failure by a
         Responsible Officer of the Issuer, the Servicer or the Seller, as
         applicable;

                  (iii) any representation, warranty or statement of the Issuer,
         the Servicer or the Seller made in this Indenture or any other Basic
         Document or any certificate, report or other writing delivered pursuant
         hereto or thereto shall prove to be incorrect as of the time when the
         same shall have been made, and such incorrectness has a material and
         adverse affect on the Note Purchaser or the Noteholders (as determined
         by the Note Purchaser or the Majority Noteholders in their sole
         discretion) and is not cured within 30 calendar days after written
         notice is received by the Issuer, the Servicer or the Seller, as
         applicable, from the Trustee, the Note Purchaser or a Noteholder or
         after discovery of such failure by a Responsible Officer of the Issuer,
         the Servicer or the Seller, as applicable;

                  (iv) failure of the Seller and/or the Issuer to pay money due
         under any other agreement, note or other instrument relating to
         Indebtedness, which failure constitutes a default that remains uncured
         for more than the applicable grace period and such default results in

                                      -20-
<PAGE>

         acceleration of such Indebtedness; or a breach by the Seller and/or the
         Issuer of any covenant or representation and warranty or any other
         event shall occur under any other agreement, note or other instrument
         evidencing Indebtedness, which event constitutes a default and such
         default results in the acceleration of such Indebtedness; PROVIDED
         THAT, in every case, such Indebtedness must be in an aggregate amount
         of at least $1,000,000 in order for an event described in this clause
         (iv) to constitute an Event of Default;

                  (v) an application is made by the Issuer, the Seller or the
         Servicer for the appointment of a receiver, trustee or custodian for
         all or any portion of the Collateral or any other material assets of
         the Issuer, the Seller or the Servicer; a petition under any section or
         chapter of the Bankruptcy Code or any similar Federal or state law or
         regulation shall be filed by the Issuer, the Seller or the Servicer, or
         the Issuer, the Seller or the Servicer shall make an assignment for the
         benefit of its creditors, or any case or proceeding shall be filed by
         the Issuer, the Seller or the Servicer for its dissolution,
         liquidation, or termination; or the Issuer, the Seller or the Servicer
         ceases to conduct its business;

                  (vi) the Collateral or any other assets of the Issuer, the
         Seller or the Servicer are attached, seized, levied upon or subjected
         to a writ or distress warrant, or come within the possesion of any
         receiver, trustee, custodian, or assignee for the benefit of the
         Issuer, the Seller or the Servicer and the same is not dissolved or
         dismissed within sixty (60) days thereafter except where any such
         actions or events would not either individually or in the aggregate
         materially and adversely affect the financial condition, operations,
         business or prospects of the Issuer, the Seller or the Servicer, as the
         case may be; an application is made by any Person other than the
         Issuer, the Seller or the Servicer for the appointment of a receiver,
         trustee or custodian for the Collateral or a material portion of the
         assets of the Issuer, the Seller or the Servicer and the same is not
         dismissed within sixty (60) days after the application thereof, or the
         Issuer, the Seller or the Servicer shall have concealed, removed or
         permitted to be concealed or removed, in the case of the Issuer, any
         part, and in the case of the Seller or the Servicer, any material
         portion, of its property with intent to hinder, delay or defraud its
         creditors or made or suffered a transfer of any of its property which
         is fraudulent under any bankruptcy, fraudulent conveyance or other
         similar law;

                  (vii) the Trustee shall for any reason cease to have a first
         priority perfected security interest in the Collateral;

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

                                      -21-
<PAGE>

                  (ix) a Borrowing Base Deficiency shall exist and not be cured
         within one (1) Business Day;

                  (x) a Servicer Termination Event shall have occurred and is
         continuing;

                  (xi) the Note Purchaser or the Majority Noteholders, in its or
         their reasonable, good faith judgment, has or have determined that
         there has been a Material Adverse Change with respect to the Issuer,
         the Servicer, the Seller or the Receivables;

                  (xii) the occurrence of a Change of Control with respect to
         the Seller or the Issuer;

                  (xiii) a final non-appealable judgment by any competent court
         in the United States is entered against the Seller for the payment of
         money in an amount in excess of $1,000,000 and remains unpaid and not
         stayed for more than 45 days; and

                  (xiv) any Basic Document shall be terminated or cease to be in
         full force or effect; PROVIDED, HOWEVER, in the case of a termination
         of the Lockbox Agreement, an Event of Default shall occur only upon the
         failure of the Seller or the Issuer to obtain a successor lockbox
         arrangement reasonably acceptable to the Note Purchaser within thirty
         (30) days of such termination.

                  (xv) Charles Bradley, Sr. becomes an employee, officer,
         director or controlling Person of CPS; and

                  (xvi) CPS fails to refinance for a term of greater than one
         year or repay any of its senior or subordinated debt that is scheduled
         to mature in 2005 (as reported in its quarterly report on Form 10-Q for
         the period ended June 30, 2005).

         (b) The Issuer shall deliver to the Trustee, the Note Purchaser and
each Noteholder, within two days after the occurrence thereof, written notice in
the form of an Officer's Certificate of any Event of Default which has occurred
or any event which either with the giving of notice or the lapse of time, or
both, would become an Event of Default, its status and what action the Issuer is
taking or proposes to take with respect thereto.

         (c) After the earlier of the receipt of notice by the Trustee and the
date of actual knowledge by a Responsible Officer of the Trustee of the
occurrence of any Default or Event of Default hereunder, the Trustee shall give
prompt written notice to the Note Purchaser and each Noteholder of each such
Default or Event of Default hereunder so known to the Trustee.

         SECTION 5.2 RIGHTS UPON EVENT OF DEFAULT. If an Event of Default shall
have occurred and be continuing, the Trustee may, and at the direction of the
Note Purchaser and the Majority Noteholders shall, and with respect to an Event
of Default pursuant to Section 5.1(a)(v) or (vi) hereof, the Trustee shall
declare the Notes to be immediately due and payable at par, together with
accrued interest thereon (calculated for these purposes using the Default
Applicable Margin). In addition, if an Event of Default shall have occurred and
be continuing, the Trustee may, and at the direction of the Note Purchaser and
the Majority Noteholders shall, exercise any of the remedies specified in
SECTION 5.4.

                                      -22-
<PAGE>

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

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

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

                  (iii) all Events of Default, other than the nonpayment of the
         principal of the Notes that has become due solely by such acceleration,
         have been cured or waived as provided in Section 5.13.

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

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

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

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

         (c) [RESERVED].

                                      -23-
<PAGE>

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

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

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

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

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

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

         (e) Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or vote for or accept or adopt on behalf of the
Noteholders or the Note Purchaser any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of the Noteholders

                                      -24-
<PAGE>

or the Note Purchaser or to authorize the Trustee to vote in respect of the
claim of the Noteholders or the Note Purchaser in any such proceeding except, as
aforesaid, to vote for the election of a trustee in bankruptcy or similar
person.

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

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

         SECTION 5.4 REMEDIES. If an Event of Default shall have occurred and be
continuing, the Note Purchaser and the Majority Noteholders may do one or more
of the following (subject to SECTION 5.5):

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

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

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

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

         SECTION 5.5 OPTIONAL PRESERVATION OF THE RECEIVABLES. If the Notes have
been declared to be due and payable under SECTION 5.2 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Trustee may, but need not, elect to maintain possession of the
Trust Estate with the prior written consent of the Note Purchaser and the
Majority Noteholders. It is the desire of the parties hereto and the Noteholders
that there be at all times sufficient funds for the payment of principal of and
interest on the Notes, and the Trustee shall take such desire into account when
determining whether or not to maintain possession of the Trust Estate. In

                                      -25-
<PAGE>

determining whether to maintain possession of the Trust Estate, the Trustee may,
but need not, obtain and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Trust Estate for such purpose.

         SECTION 5.6 PRIORITIES. If the Trustee collects any money or property
pursuant to this Article V, it shall pay out the money or property in the
following order:

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

                  (ii) SECOND: to the Noteholders for amounts due and unpaid on
         the Notes in respect of interest (including any premium), ratably,
         without preference or priority of any kind, according to the amounts
         due and payable on the Notes in respect of interest (including any
         premium);

                  (iii) THIRD: to the Noteholders for amounts due and unpaid on
         the Notes in respect of principal, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Notes in respect of principal, until the outstanding principal amount
         of the Notes is reduced to zero;

                  (iv) FOURTH: to the Note Purchaser for any amounts due and
         owing thereto under the Basic Documents; and

                  (v) FIFTH: any excess amounts remaining after making the
         payments described in clauses FIRST through FOURTH above, to be applied
         pursuant to Section 5.7(a) of the Sale and Servicing Agreement to the
         extent that any amounts payable thereunder have not been previously
         paid pursuant to clauses FIRST through FOURTH above.

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

         SECTION 5.7 LIMITATION OF SUITS. Unless the Notes shall be held by the
Note Purchaser or an Affiliate thereof, no Holder of a Note shall have any right
to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

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

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

                                      -26-
<PAGE>

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

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

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

         SECTION 5.8 UNCONDITIONAL RIGHTS OF THE NOTEHOLDERS TO RECEIVE
PRINCIPAL AND INTEREST. Notwithstanding any other provisions of this Indenture,
(i) each Noteholder shall have the right, which is absolute and unconditional,
to receive payment of the applicable Percentage Interest of principal of and
interest, if any, on such Note on or after the respective due dates thereof
expressed in such Note or in this Indenture, (ii) the Note Purchaser shall have
the right, which is absolute and unconditional, to receive payment of all
amounts owed to it by the Issuer under the Basic Documents when the same shall
become due, and, in each case, to institute suit for the enforcement of any such
payment, and such right shall not be impaired without the consent of the Note
Purchaser or the Majority Noteholders, as applicable.

         SECTION 5.9 RESTORATION OF RIGHTS AND REMEDIES. If the Note Purchaser
or a Noteholder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason or has been determined adversely to the Trustee, the Note Purchaser
or to such Noteholder, then and in every such case the Issuer, the Trustee, the
Note Purchaser and the Noteholders shall, subject to any determination in such
Proceeding, be restored severally and respectively to their former positions
hereunder, and thereafter all rights and remedies of the Trustee, the Note
Purchaser and the Noteholder shall continue as though no such proceeding had
been instituted.

         SECTION 5.10 RIGHTS AND REMEDIES CUMULATIVE. No right or remedy herein
conferred upon or reserved to the Note Purchaser or the Noteholders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

         SECTION 5.11 DELAY OR OMISSION NOT A WAIVER. No delay or omission of
the Note Purchaser or the Noteholders to exercise any right or remedy accruing
upon any Default or Event of Default shall impair any such right or remedy or
constitute a waiver of any such Default or Event of Default or an acquiescence
therein. Every right and remedy given by this Article V or by law to the
Trustee, the Note Purchaser or the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee, the Note
Purchaser or the Noteholders, as the case may be.

                                      -27-
<PAGE>

         SECTION 5.12 [RESERVED].

         SECTION 5.13 WAIVER OF PAST DEFAULTS. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in SECTION 5.2, the Note
Purchaser and the Majority Noteholders may waive any past Default or Event of
Default and its consequences except a Default or Event of Default (i) in payment
of principal of or interest on the Notes or (ii) in respect of a covenant or
provision hereof which cannot be modified or amended without the consent of the
Note Purchaser and all of the Noteholders. In the case of any such waiver, the
Issuer, the Trustee, the Note Purchaser and the Noteholders shall be restored to
their former positions and rights hereunder, respectively; but no such waiver
shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereto.

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

         SECTION 5.14 UNDERTAKING FOR COSTS. Each of the Issuer, the Trustee and
the Note Purchaser agrees, and each Noteholder by its acceptance of a Note shall
be deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in any
suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys' fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to (a) any suit instituted by the Trustee, (b) any suit
instituted by the Note Purchaser or Noteholders holding in the aggregate more
than 10% of Percentage Interests of the Note or (c) any suit instituted by the
Noteholders for the enforcement of the payment of principal of or interest on
the Notes on or after the respective due dates expressed in the Notes and in
this Indenture.

         SECTION 5.15 WAIVER OF STAY OR EXTENSION LAWS. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power and any right of the Issuer to take
such action shall be suspended.

                                      -28-
<PAGE>

         SECTION 5.16 SALE OF TRUST ESTATE.

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

                  (i) the Note Purchaser and the Majority Noteholders consent to
         or direct the Trustee in writing to make such sale; or

                  (ii) the proceeds of such sale would be not less than the sum
         of (x) all amounts due on the entire unpaid principal amount of the
         Notes and interest due or to become due thereon in accordance with
         Section 5.6 hereof on the Settlement Date next succeeding the date of
         such sale and (y) all amounts due the Note Purchaser from the Issuer
         under the Basic Documents.

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

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

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

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

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

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

                                   ARTICLE VI
                                   THE TRUSTEE

         SECTION 6.1 DUTIES OF TRUSTEE. If an Event of Default has occurred and
is continuing, the Trustee shall exercise the rights and powers vested in it by
this Indenture and the other Basic Documents and use the same degree of care and
skill in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.

                                      -29-
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

                                      -30-
<PAGE>

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

         (i) Except for actions expressly authorized by this Indenture, the
Trustee shall take no action reasonably likely to impair the security interests
created or existing under any Receivable or Financed Vehicle or to impair the
value of any Receivable or Financed Vehicle.

         (j) All information obtained by the Trustee regarding the Obligors and
the Receivables, whether upon the exercise of its rights under this Indenture or
otherwise, shall be maintained by the Trustee in confidence and shall not be
disclosed to any other Person, other than the Trustee's attorneys, accountants
and agents unless such disclosure is required by this Indenture or any
applicable law or regulation.

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

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

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

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

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

         (e) The Trustee shall be under no obligation to institute, conduct or
defend any litigation under this Indenture or in relation to this Indenture, at
the request, order or direction of the Note Purchaser or the Noteholders,
pursuant to the provisions of this Indenture, unless the Note Purchaser and/or
the Noteholders, as applicable, shall have offered to the Trustee reasonable

                                      -31-
<PAGE>

security or indemnity against the costs, expenses and liabilities that may be
incurred therein or thereby; provided, however, that the Trustee shall, upon the
occurrence of an Event of Default (that has not been cured), exercise the rights
and powers vested in it by this Indenture in accordance with Section 6.1.

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

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

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

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

         SECTION 6.6 REPORTS BY TRUSTEE TO THE NOTEHOLDERS. The Trustee shall on
behalf of the Issuer deliver to the Noteholders and the Note Purchaser such
information as may be reasonably required to enable the Noteholders and the Note
Purchaser to prepare their respective Federal and State income tax returns.

         SECTION 6.7 COMPENSATION AND INDEMNITY. Pursuant to Section 5.7 of the
Sale and Servicing Agreement, the Issuer shall pay to the Trustee from time to
time compensation for its services. The Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall reimburse the Trustee, pursuant and subject to Section 5.7 of the Sale and
Servicing Agreement, for all reasonable out-of-pocket expenses incurred or made
by it, including costs of collection, in addition to the compensation for its

                                      -32-
<PAGE>

services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and
experts. The Issuer shall or shall cause the Servicer to indemnify the Trustee
against any and all loss, liability or expense incurred by the Trustee without
willful misfeasance, negligence or bad faith on its part arising out of or in
connection with the acceptance or the administration of this trust and the
performance of its duties hereunder, including the costs and expenses of
defending itself against any claim or liability in connection therewith. The
Trustee shall notify the Issuer and the Servicer promptly of any claim for which
it may seek indemnity. Failure by the Trustee to so notify the Issuer and the
Servicer shall not relieve the Issuer of its obligations hereunder or the
Servicer of its obligations under Article XII of the Sale and Servicing
Agreement. The Trustee may have separate counsel and the Issuer shall or shall
cause the Servicer to pay the reasonable fees and expenses of such counsel.
Neither the Issuer nor the Servicer need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Trustee through the
Trustee's own willful misconduct, negligence or bad faith.

         (b) The Issuer's payment obligations to the Trustee pursuant to this
Section shall survive the discharge of this Indenture. When the Trustee incurs
expenses after the occurrence of a Default specified in Section 5.1(a)(v) with
respect to the Issuer, the expenses are intended to constitute expenses of
administration under Title 11 of the United States Code or any other applicable
Federal or State bankruptcy, insolvency or similar law. Notwithstanding anything
else set forth in this Indenture or the other Basic Documents, the recourse of
the Trustee hereunder and under the other Basic Documents specifically shall not
be recourse to the assets of the Noteholders or the Note Purchaser.

         SECTION 6.8 REPLACEMENT OF TRUSTEE. The Issuer may, with the consent of
the Note Purchaser and the Majority Noteholders, and at the request of the Note
Purchaser and the Majority Noteholders shall, remove the Trustee if:

                  (i) the Trustee fails to comply with Section 6.11 or the
         Trustee fails to perform any other material covenant or agreement of
         the Trustee set forth in the Basic Documents to which the Trustee is a
         party and such failure continues for 45 days after written notice of
         such failure from the Note Purchaser or a Noteholder;

                  (ii) an Insolvency Event with respect to the Trustee occurs;
         or

                  (iii) the Trustee otherwise becomes incapable of acting.

         If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason (the Trustee in such event being referred to
herein as the retiring Trustee), the Issuer shall promptly appoint a successor
Trustee acceptable to the Note Purchaser and the Majority Noteholders. If the
Issuer fails to appoint such a successor Trustee, the Note Purchaser and the
Majority Noteholders may appoint a successor Trustee.

         A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee, the Note Purchaser, the Noteholders and the
Issuer, whereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers
and duties of the retiring Trustee under this Indenture. The retiring Trustee
shall promptly transfer all property held by it as Trustee to the successor
Trustee.

                                      -33-
<PAGE>

         If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Issuer, the
Note Purchaser or the Majority Noteholders may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

         Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor Trustee
pursuant to SECTION 6.8.

         Notwithstanding the replacement of the Trustee pursuant to this
Section, the Issuer's and the Servicer's obligations under Section 6.7 shall
continue for the benefit of the retiring Trustee.

         SECTION 6.9 SUCCESSOR TRUSTEE BY MERGER. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee. The Trustee shall provide the
Noteholders and the Note Purchaser prior written notice of any such transaction.

         (a) In case at the time such successor or successors to the Trustee by
merger, conversion or consolidation shall succeed to the trusts created by this
Indenture the Notes shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any
predecessor trustee, and deliver the Notes so authenticated; and in case at that
time the Notes shall not have been authenticated, any successor to the Trustee
may authenticate the Notes either in the name of any predecessor hereunder or in
the name of the successor to the Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Notes or in
this Indenture provided that the certificate of the Trustee shall have.

         SECTION 6.10 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.
Notwithstanding any other provisions of this Indenture, at any time, for the
purpose of meeting any legal requirement of any jurisdiction in which any part
of the Trust Estate may at the time be located, the Trustee with the consent of
the Note Purchaser and the Majority Noteholders shall have the power and may
execute and deliver all instruments to appoint one or more Persons to act as a
co-trustee or co-trustees, or separate trustee or separate trustees, of all or
any part of the Trust Estate, and to vest in such Person or Persons, in such
capacity and for the benefit of the Noteholders and the Note Purchaser, such
title to the Trust Estate, or any part thereof, and, subject to the other
provisions of this Section, such powers, duties, obligations, rights and trusts
as the Trustee may consider necessary or desirable. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.11 and no notice to the Note Purchaser or the
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.8 hereof.

         (a) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                                      -34-
<PAGE>

                  (i) all rights, powers, duties and obligations conferred or
         imposed upon the Trustee shall be conferred or imposed upon and
         exercised or performed by the Trustee and such separate trustee or
         co-trustee jointly (it being understood that such separate trustee or
         co-trustee is not authorized to act separately without the Trustee
         joining in such act), except to the extent that under any law of any
         jurisdiction in which any particular act or acts are to be performed
         the Trustee shall be incompetent or unqualified to perform such act or
         acts, in which event such rights, powers, duties and obligations
         (including the holding of title to the Trust or any portion thereof in
         any such jurisdiction) shall be exercised and performed singly by such
         separate trustee or co-trustee, but solely at the direction of the
         Trustee;

                  (ii) no trustee hereunder shall be personally liable by reason
         of any act or omission of any other trustee hereunder, including acts
         or omissions of predecessor or successor trustees; and

                  (iii) the Trustee may at any time accept the resignation of or
         remove any separate trustee or co-trustee.

         (b) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Indenture and the conditions
of this Article VI. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Trustee or separately, as
may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision of this Indenture relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.

         (c) Any separate trustee or co-trustee may at any time constitute the
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Indenture on its behalf and in its name. If any separate trustee or co-trustee
shall die, dissolve, become insolvent, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall
invest in and be exercised by the Trustee, to the extent permitted by law,
without the appointment of a new or successor trustee.

         SECTION 6.11 ELIGIBILITY: DISQUALIFICATION. The Trustee shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition and subject to supervision or
examination by federal or state authorities; and having a rating, both with
respect to long-term and short-term unsecured obligations, of not less than
investment grade by Standard & Poor's or Moody's. The Trustee shall provide
copies of such reports to the Note Purchaser and the Noteholders upon request.

         SECTION 6.12 [RESERVED].

                                      -35-
<PAGE>

         SECTION 6.13 APPOINTMENT AND POWERS. Subject to the terms and
conditions hereof, the initial Noteholder and the Note Purchaser hereby appoint
Wells Fargo Bank, National Association as the Trustee with respect to the
Collateral, and Wells Fargo Bank, National Association hereby accepts such
appointment and agrees to act as Trustee with respect to the Collateral for the
benefit of the Noteholders and the Note Purchaser, to maintain custody and
possession of such Collateral (except as otherwise provided hereunder) and to
perform the other duties of the Trustee in accordance with the provisions of
this Indenture and the other Basic Documents. Each Noteholder, by its acceptance
of a Note, hereby authorizes the Trustee to take such action on its behalf, and
to exercise such rights, remedies, powers and privileges hereunder, as such
Noteholder may direct and as are specifically authorized to be exercised by the
Trustee by the terms hereof, together with such actions, rights, remedies,
powers and privileges as are reasonably incidental thereto. The Trustee shall
act upon and in compliance with the written instructions of the Note Purchaser
or the Majority Noteholders delivered pursuant to this Indenture promptly
following receipt of such written instructions; provided that the Trustee shall
not act in accordance with any instructions (i) which are not authorized by, or
in violation of the provisions of, this Indenture, (ii) which are in violation
of any applicable law, rule or regulation or (iii) for which the Trustee has not
received reasonable indemnity. Receipt of such instructions shall not be a
condition to the exercise by the Trustee of its express duties hereunder, except
where this Indenture provides that the Trustee is permitted to act only
following and in accordance with such instructions.

         SECTION 6.14 PERFORMANCE OF DUTIES. The Trustee shall have no duties or
responsibilities except those expressly set forth in this Indenture and the
other Basic Documents to which the Trustee is a party or as directed by the
Noteholders or the Note Purchaser in accordance with this Indenture. The Trustee
shall not be required to take any discretionary actions hereunder except at the
written direction of the Note Purchaser or the Majority Noteholders. The Trustee
shall, and hereby agrees that it will, perform all of the duties and obligations
required of it under the Basic Documents.

         SECTION 6.15 LIMITATION ON LIABILITY. Neither the Trustee nor any of
its directors, officers or employees shall be liable for any action taken or
omitted to be taken by it or them in good faith hereunder, or in connection
herewith, except that the Trustee shall be liable for its negligence, bad faith
or willful misconduct. Notwithstanding any term or provision of this Indenture,
the Trustee shall incur no liability to the Issuer, the Note Purchaser or the
Noteholders for any action taken or omitted by the Trustee in connection with
the Collateral, except for the negligence, bad faith or willful misconduct on
the part of the Trustee, and, further, shall incur no liability to the Note
Purchaser or the Noteholders except for negligence, bad faith or willful
misconduct in carrying out its duties to the Note Purchaser and the Noteholders.
The Trustee shall at all times be free independently to establish to its
reasonable satisfaction, but shall have no duty to independently verify, the
existence or nonexistence of facts that are a condition to the exercise or
enforcement of any right or remedy hereunder or under any of the Basic
Documents. The Trustee may consult with counsel, and shall not be liable for any
action taken or omitted to be taken by it hereunder in good faith and in
accordance with the written advice of such counsel. The Trustee shall not be
under any obligation to exercise any of the remedial rights or powers vested in
it by this Indenture or to follow any direction from the Note Purchaser or the
Noteholders unless it shall have received reasonable security or indemnity
satisfactory to the Trustee against the costs, expenses and liabilities which
might be incurred by it.

                                      -36-
<PAGE>

         SECTION 6.16 [RESERVED].

         SECTION 6.17 SUCCESSOR TRUSTEE.

         (a) MERGER. Any Person into which the Trustee may be converted or
merged, or with which it may be consolidated, or to which it may sell or
transfer its trust business and assets as a whole or substantially as a whole,
or any Person resulting from any such conversion, merger, consolidation, sale or
transfer to which the Trustee is a party, shall (provided it is otherwise
qualified to serve as the Trustee hereunder) be and become a successor Trustee
hereunder and be vested with all of the title to and interest in the Collateral
and all of the trusts, powers, descriptions, immunities, privileges and other
matters and have all of the obligations as its predecessor without the execution
or filing of any instrument or any further act, deed or conveyance on the part
of any of the parties hereto, anything herein to the contrary notwithstanding,
except to the extent, if any, that any such action is necessary to perfect, or
continue the perfection of, the security interest of the Trustee for the benefit
of the Note Purchaser and the Noteholders in the Collateral; provided that any
such successor shall also be the successor Trustee under SECTION 6.9.

         (b) REMOVAL. The Trustee may be removed by the Note Purchaser or the
Majority Noteholders at any time, with or without cause, by an instrument or
concurrent instruments in writing delivered to the Trustee and the Issuer. A
temporary successor may be removed at any time to allow a successor Trustee to
be appointed pursuant to subsection (c) below. Any removal pursuant to the
provisions of this subsection (b) shall take effect only upon the date which is
the latest of (i) the effective date of the appointment of a successor Trustee
and the acceptance in writing by such successor Trustee of such appointment and
of its obligation to perform its duties hereunder in accordance with the
provisions hereof, and (ii) receipt by the Note Purchaser and the Noteholders of
an Opinion of Counsel to the effect described in Section 3.4.

         (c) ACCEPTANCE BY SUCCESSOR. The Majority Noteholders and the Note
Purchaser shall have the sole right to appoint each successor Trustee. Every
temporary or permanent successor Trustee appointed hereunder shall execute,
acknowledge and deliver to its predecessor and to the Trustee, the Note
Purchaser, the Noteholders and the Issuer an instrument in writing accepting
such appointment hereunder and the relevant predecessor shall execute,
acknowledge and deliver such other documents and instruments as will effectuate
the delivery of all Collateral to the successor Trustee, whereupon such
successor, without any further act, deed or conveyance, shall become fully
vested with all the estates, properties, rights, powers, duties and obligations
of its predecessor. Such predecessor shall, nevertheless, on the written request
of the Majority Noteholders and the Note Purchaser or the Issuer, execute and
deliver an instrument transferring to such successor all the estates,
properties, rights and powers of such predecessor hereunder. In the event that
any instrument in writing from the Issuer or the Note Purchaser and the Majority
Noteholders is reasonably required by a successor Trustee to more fully and
certainly vest in such successor the estates, properties, rights, powers, duties
and obligations vested or intended to be vested hereunder in the Trustee, any
and all such written instruments shall at the request of the temporary or
permanent successor Trustee, be forthwith executed, acknowledged and delivered
by the Trustee or the Issuer, as the case may be. The designation of any
successor Trustee and the instrument or instruments removing any Trustee and
appointing a successor hereunder, together with all other instruments provided
for herein, shall be maintained with the records relating to the Collateral and,
to the extent required by applicable law, filed or recorded by the successor
Trustee in each place where such filing or recording is necessary to effect the
transfer of the Collateral to the successor Trustee or to protect or continue
the perfection of the security interests granted hereunder.

                                      -37-
<PAGE>

         SECTION 6.18 [RESERVED].

         SECTION 6.19 REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE. The Trustee
represents and warrants to the Issuer, the Note Purchaser and the Majority
Noteholders as follows:

         (a) The Trustee is a national banking association, duly organized,
validly existing and in good standing under the laws of the United States and is
duly authorized and licensed under applicable law to conduct its business as
presently conducted.

         (b) The Trustee has all requisite right, power and authority to execute
and deliver this Indenture and to perform all of its duties as Trustee
hereunder.

         (c) The execution and delivery by the Trustee of this Indenture and the
other Basic Documents to which it is a party, and the performance by the Trustee
of its duties hereunder and thereunder, have been duly authorized by all
necessary corporate proceedings and no further approvals or filings, including
any governmental approvals, are required for the valid execution and delivery by
the Trustee, or the performance by the Trustee, of this Indenture and such other
Basic Documents.

         (d) The Trustee has duly executed and delivered this Indenture and each
other Basic Document to which it is a party, and each of this Indenture and each
such other Basic Document constitutes the legal, valid and binding obligation of
the Trustee, enforceable against the Trustee in accordance with its terms,
except as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization and similar laws relating to or affecting the enforcement of
creditors' rights generally and (ii) the availability of equitable remedies may
be limited by equitable principles of general applicability.

         SECTION 6.20 WAIVER OF SETOFFS. The Trustee hereby expressly waives any
and all rights of setoff that the Trustee may otherwise at any time have under
applicable law with respect to any Pledged Account and agrees that amounts in
the Pledged Accounts shall at all times be held and applied solely in accordance
with the provisions hereof.

         SECTION 6.21 CONTROL BY THE NOTE PURCHASER AND THE MAJORITY
NOTEHOLDERS. The Trustee shall comply with notices and instructions given by the
Issuer only if accompanied by the written consent of the Note Purchaser and the
Majority Noteholders, except that if any Event of Default shall have occurred
and be continuing, the Trustee shall act upon and comply with notices and
instructions given by the Note Purchaser or the Majority Noteholders alone in
the place and stead of the Issuer.

                                  ARTICLE VII

                                   [RESERVED]

                                      -38-
<PAGE>

                                  ARTICLE VIII

                COLLECTION OF MONEY AND RELEASES OF TRUST ESTATE

         SECTION 8.1 COLLECTION OF MONEY. Except as otherwise expressly provided
herein, the Trustee may demand payment or delivery of, and shall receive and
collect, directly and without intervention or assistance of any fiscal agent or
other intermediary, all money and other property payable to or receivable by the
Trustee pursuant to this Indenture and the other Basic Documents. The Trustee
shall apply all such money received by it as provided in this Indenture and the
Sale and Servicing Agreement. Except as otherwise expressly provided in this
Indenture or in the other Basic Documents, if any default occurs in the making
of any payment or performance under any agreement or instrument that is part of
the Trust Estate, the Trustee may take such action as may be appropriate to
enforce such payment or performance, including the institution and prosecution
of appropriate proceedings. Any such action shall be without prejudice to any
right to claim a Default or Event of Default under this Indenture and any right
to proceed thereafter as provided in Article V.

         SECTION 8.2 RELEASE OF TRUST ESTATE. Subject to the payment of its fees
and expenses pursuant to Section 6.7, the Trustee may, and when required by the
provisions of this Indenture shall, execute instruments to release property from
the lien of this Indenture, in a manner and under circumstances that are not
inconsistent with the provisions of this Indenture. No party relying upon an
instrument executed by the Trustee as provided in this Article VIII shall be
bound to ascertain the Trustee's authority, inquire into the satisfaction of any
conditions precedent or see to the application of any moneys.

         (a) The Trustee shall, at such time as there is no Note Outstanding,
all amounts due and owing to the Note Purchaser and the Noteholders under any of
the Basic Documents have been paid in full, all sums due the Trustee pursuant to
Section 6.7 have been paid and the term of the Commitment shall have expired,
release any remaining portion of the Trust Estate that secured the Notes and the
other obligations of the Issuer, the Purchaser and the Seller to the Note
Purchaser and the Noteholders pursuant to the Basic Documents from the lien of
this Indenture and release to the Issuer or any other Person entitled thereto
any funds then on deposit in the Pledged Accounts. The Trustee shall release
property from the lien of this Indenture pursuant to this Section 8.2(b) only
upon receipt of an Issuer Request accompanied by an Officer's Certificate, a
copy of each of which shall also be delivered to the Note Purchaser and the
Noteholders.

         (b) OPINION OF COUNSEL. The Trustee shall receive at least seven days'
notice when requested by the Issuer to take any action pursuant to Section
8.2(a), accompanied by copies of any instruments involved, and the Trustee shall
also require as a condition to such action, an Opinion of Counsel in form and
substance satisfactory to the Trustee, stating the legal effect of any such
action, outlining the steps required to complete the same, and concluding that
all conditions precedent to the taking of such action have been complied with
and such action will not materially and adversely affect the security for the
Notes or the rights of the Note Purchaser and/or the Noteholders in
contravention of the provisions of this Indenture or any of the other Basic
Documents; provided, however, that such Opinion of Counsel shall not be required
to express an opinion as to the fair value of the Trust Estate. Counsel
rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the
Trustee in connection with any such action.

                                      -39-
<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

         With the prior written consent of the Note Purchaser and the Majority
Noteholders, the Issuer and the Trustee, when authorized by an Issuer Order, at
any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the
following purposes:

                  (i) to correct or amplify the description of any property at
         any time subject to the lien of this Indenture, or better to assure,
         convey and confirm unto the Trustee any property subject or required to
         be subjected to the lien of this Indenture, or to subject to the lien
         of this Indenture additional property;

                  (ii) to evidence the succession, in compliance with the
         applicable provisions hereof, of another person to the Issuer, and the
         assumption by any such successor of the covenants of the Issuer herein
         and in the Notes contained;

                  (iii) to add to the covenants of the Issuer, for the benefit
         of the Noteholders and the Note Purchaser, or to surrender any right or
         power herein conferred upon the Issuer;

                  (iv) to convey, transfer, assign, mortgage or pledge any
         property to or with the Trustee;

                  (v) to cure any ambiguity, to correct or supplement any
         provision herein or in any supplemental indenture which may be
         inconsistent with any other provision herein or in any supplemental
         indenture or to make any other provisions with respect to matters or
         questions arising under this Indenture or in any supplemental
         indenture; provided that such action shall not adversely affect the
         interests of the Note Purchaser or the Noteholders; or

                  (vi) to evidence and provide for the acceptance of the
         appointment hereunder by a successor trustee with respect to the Notes
         and to add to or change any of the provisions of this Indenture as
         shall be necessary to facilitate the administration of the trusts
         hereunder by more than one trustee, pursuant to the requirements of
         Article VI.

The Trustee is hereby authorized to join in the execution of any such
supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

         (b) The Issuer and the Trustee, when authorized by an Issuer Order,
may, also with the consent of the Note Purchaser and the Majority Noteholders,
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Note Purchaser or the Noteholders under this Indenture; provided, however, that
such action shall not, as evidenced by an Opinion of Counsel, adversely affect
in any material respect the interests of the Note Purchaser or the Noteholders.

                                      -40-
<PAGE>

         SECTION 9.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF THE NOTE PURCHASER
AND THE MAJORITY NOTEHOLDERS. The Issuer and the Trustee, when authorized by an
Issuer Order, also may, with the prior written consent of the Note Purchaser and
the Majority Noteholders, enter into an indenture or indentures supplemental
hereto for any purpose; provided, however, that, no such supplemental indenture
shall, without the prior written consent of the Note Purchaser and all of the
Noteholders:

                  (i) change the date of payment of any installment of principal
         of or interest on the Notes or any other amount owed by the Issuer
         under the Basic Documents, or reduce the Percentage Interest thereof,
         the interest rate thereon, change the provision of this Indenture
         relating to the application of collections on, or the proceeds of the
         sale of, the Trust Estate to payment of principal of or interest on the
         Notes or any other amount owed by the Issuer under the Basic Documents,
         or change any place of payment where, or the coin or currency in which,
         the Notes or the interest thereon or any other amount owed by the
         Issuer under the Basic Documents is payable;

                  (ii) impair the right to institute suit for the enforcement of
         the provisions of this Indenture requiring the application of funds
         available therefor, as provided in ARTICLE V, to the payment of any
         such amount due on the Notes or any other amount owed by the Issuer
         under the Basic Documents on or after the respective due dates thereof;

                  (iii) reduce the Percentage Interest, the consent of the
         Holders of which is required for any such supplemental indenture, or
         eliminate the requirement that the Note Purchaser consent thereto, or
         the consent of the Holders of which or the Note Purchaser is required
         for any waiver of compliance with certain provisions of this Indenture
         or certain defaults hereunder and their consequences provided for in
         this Indenture;

                  (iv) modify or alter the provisions of the proviso to the
         definition of the term "OUTSTANDING";

                  (v) reduce the Percentage Interest required to direct the
         Trustee to direct the Issuer to sell or liquidate the Trust Estate or
         eliminate the requirement that the Note Purchaser so direct pursuant to
         Section 5.4;

                  (vi) modify any provision of this Section except to increase
         any percentage specified herein or to provide that certain additional
         provisions of this Indenture or the other Basic Documents cannot be
         modified or waived without the consent of the Note Purchaser and the
         Majority Noteholders;

                  (vii) modify any of the provisions of this Indenture in such
         manner as to affect the calculation of the amount or timing of any
         payment of (x) interest or principal due on the Notes on any Settlement
         Date (including the calculation of any of the individual components of
         such calculation) or to affect the rights of the Noteholders to the
         benefit of any provisions for the mandatory redemption of the Notes
         contained herein or (y) any amount due to the Note Purchaser from the
         Issuer under the Basic Documents, or affect the rights of the Note
         Purchaser under the Basic Documents; or

                                      -41-
<PAGE>

                  (viii) permit the creation of any Lien ranking prior to or on
         a parity with the Lien of this Indenture with respect to any part of
         the Trust Estate or, except as otherwise permitted or contemplated
         herein or in any of the Basic Documents, terminate the Lien of this
         Indenture on any property at any time subject hereto or deprive the
         Noteholders or the Note Purchaser of the security provided by the Lien
         of this Indenture.

         (b) Unless otherwise specified by the Note Purchaser or the
Noteholders, it shall be necessary for any Act of the Note Purchaser or the
Noteholders under this Section to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such Act shall approve the
substance thereof.

         (c) Promptly after the execution by the Issuer and the Trustee of any
supplemental indenture pursuant to this Section, the Trustee shall mail to the
Note Purchaser and each Noteholder a copy of such supplemental indenture. Any
failure of the Trustee to mail such copy shall not, however, in any way impair
or affect the validity of any such supplemental indenture.

         SECTION 9.3 EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Trustee shall be entitled to receive, and subject to
Sections 6.1 and 6.2, shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture that affects the Trustee's own
rights, duties, liabilities or immunities under this Indenture or otherwise.

         SECTION 9.4 EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith, and the
respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Trustee, the Issuer, the Note Purchaser
and the Noteholders shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

                                   ARTICLE X

                        REPAYMENT AND PREPAYMENT OF NOTES

         SECTION 10.1 REPAYMENT OF THE NOTES; OPTIONAL PREPAYMENT OF THE NOTES.
The outstanding principal balance of the Notes and all accrued and unpaid
interest thereon shall be payable in full by the Facility Termination Date and
otherwise as provided in Section 3.1, the form of Note attached as EXHIBIT A and
the Sale and Servicing Agreement. The Issuer may, at its option, prepay the
Invested Amount of the Notes, in whole or in part, at any time on any Business
Day (such day the "PREPAYMENT DATE") in accordance with this SECTION 10.1 and

                                      -42-
<PAGE>

SECTION 10.2; provided that no such prepayment may occur (i) unless and until
all amounts due and payable in respect of clauses (i) through (vii) of Section
5.7(a) of the Sale and Servicing Agreement have been paid in full irrespective
of whether Available Funds are sufficient for this purpose or (ii) if, after
giving effect to such prepayment and the release of any related Collateral, a
Borrowing Base Deficiency shall exist. Simultaneous with any such prepayment,
the Issuer shall pay all accrued and unpaid interest on the Invested Amount to
be prepaid and all other amounts then due and owing under the Basic Documents.
Upon the deposit of any prepayment and all such other amounts then due and owing
under the Basic Documents into the Collection Account, the Trustee shall release
the Collateral that is the subject of such prepayment from the lien of this
Indenture. In connection with such prepayment, the Trustee shall be entitled to
conclusively rely upon the direction of the Issuer to the Trustee (a form of
which is attached hereto as EXHIBIT E) to release such Collateral as may be
identified by the Issuer in writing and consented to in writing by the Note
Purchaser as being the subject of such prepayment upon the conditions specified
in such writing. All prepayments in part shall be in principal amounts of at
least $100,000.

         SECTION 10.2 NOTICE OF PREPAYMENT. Notice of the prepayment of the Note
shall be given, upon the direction of the Issuer, by the Trustee by facsimile
transmission, courier or first class mail, postage prepaid, mailed, faxed or
couriered not less than five (5) days prior to the related Prepayment Date, to
the Note Purchaser and each Noteholder. All notices of prepayment shall state
(i) the Prepayment Date, (ii) the Invested Amount to be prepaid, (iii) the
estimated accrued and unpaid interest on the Invested Amount to be prepaid and
(iv) any other amounts due and owing to the Note Purchaser under the Basic
Documents. Failure to give notice of prepayment, or any defect therein, to a
Noteholder or the Note Purchaser shall not impair or affect the validity of such
prepayment.

         SECTION 10.3 GENERAL PROCEDURES. The Invested Amount of the Notes and
amounts due to the Note Purchaser by the Issuer under the Basic Documents shall
not be considered reduced by any allocation, setting aside or distribution of
any portion of the Available Funds unless such Available Funds shall have been
actually paid to the Noteholders or the Note Purchaser, as applicable. The
Invested Amount of the Notes and amounts due to the Note Purchaser by the Issuer
under the Basic Documents shall not be considered repaid by any distribution of
any portion of the Available Funds if at any time such distribution is rescinded
or must otherwise be returned for any reason, in which event, if such amount has
been returned by the Noteholders or the Note Purchaser, as applicable, such
principal, interest and/or other amount shall be reinstated in an amount equal
to the amount returned by the Noteholders or the Note Purchaser, as applicable.
No provision of this Indenture shall require the payment or permit the
collection of interest in excess of the maximum permitted by applicable law.

                                   ARTICLE XI

                                  MISCELLANEOUS

         SECTION 11.1 COMPLIANCE CERTIFICATES AND OPINIONS, ETC. Except as set
forth herein, upon any application or request by the Issuer to the Trustee to
take any action under any provision of this Indenture (other than any request
hereunder by the Issuer for an Advance), the Issuer shall furnish to the
Trustee, with a copy of each to the Note Purchaser and the Noteholders, (i) an

                                      -43-
<PAGE>

Officer's Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with,
and (ii) an Opinion of Counsel stating that in the opinion of such counsel all
such conditions precedent, if any, have been complied with, except that, in the
case of any such application or request as to which the furnishing of such
documents is specifically required by any provision of this Indenture, no
additional certificate or opinion need be furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

                  (i) a statement that each signatory of such certificate or
         opinion has read or has caused to be read such covenant or condition
         and the definitions herein relating thereto;

                  (ii) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (iii) a statement that, in the opinion of each such signatory,
         such signatory has made such examination or investigation as is
         necessary to enable such signatory to express an informed opinion as to
         whether or not such covenant or condition has been complied with; and

                  (iv) a statement as to whether, in the opinion of each such
         signatory such condition or covenant has been complied with.

         (b) Other than with respect to Dollars, prior to the deposit of any
Collateral or other property or securities with the Trustee that is to be made
the basis for the release of any property or securities subject to the lien of
this Indenture, the Issuer shall, in addition to any obligation imposed in
Section 11.1(a) or elsewhere in this Indenture, furnish to the Trustee, with a
copy thereof to the Note Purchaser and the Noteholders, an Officer's Certificate
certifying or stating the opinion of each person signing such certificate as to
the fair value (on the date of such deposit) to the Issuer of the Collateral or
other property or securities to be so deposited.

         (c) Other than with respect to the release of any Purchased Receivables
or Liquidated Receivables or the release, if any, of any Receivables upon a
mandatory or partial prepayment of the Notes and other amounts due to the Note
Purchaser from the Issuer under the Basic Documents pursuant to Section 10.1,
whenever any property or securities are to be released from the lien of this
Indenture, the Issuer shall also furnish, prior to or contemporaneous with such
release, to the Trustee, with a copy thereof to the Note Purchaser and the
Noteholders, an Officer's Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (such fair value to be as
of a date within 90 days of such release) of the property or securities proposed
to be released and stating that in the opinion of such person the proposed
release will not impair the security under this Indenture in contravention of
the provisions hereof.

         (d) Notwithstanding Section 2.10 or any provision of this Section, the
Issuer may (A) collect, liquidate, sell or otherwise dispose of Receivables as
and to the extent permitted or required by the Basic Documents and (B) make cash
payments out of the Pledged Accounts as and to the extent permitted or required
by the Basic Documents.

                                      -44-
<PAGE>

         SECTION 11.2 FORM OF DOCUMENTS DELIVERED TO TRUSTEE. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.

         (a) Any certificate or opinion of an Authorized Officer of the Issuer
may be based, insofar as it relates to legal matters, upon a certificate or
opinion of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his or her certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Servicer, the Seller, the Purchaser or the Issuer, stating that the
information with respect to such factual matters is in the possession of the
Servicer, the Seller, the Purchaser or the Issuer, unless such counsel knows, or
in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous.

         (b) Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

         (c) Whenever in this Indenture, in connection with any application or
certificate or report to the Trustee, it is provided that the Issuer shall
deliver any document as a condition of the granting of such application, or as
evidence of the Issuer's compliance with any term hereof, it is intended that
the truth and accuracy, at the time of the granting of such application or at
the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Trustee's right to rely upon the truth and accuracy of
any statement or opinion contained in any such document as provided in Article
VI.

         SECTION 11.3 ACTS OF THE NOTEHOLDERS OR THE NOTE PURCHASER. Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by a Noteholder or the
Note Purchaser may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholder or the Note Purchaser in
person or by agents duly appointed in writing; and except as herein otherwise
expressly provided such action shall become effective when such instrument or
instruments are delivered to the Trustee, and, where it is hereby expressly
required, to the Issuer. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the "ACT" of
the Noteholders or the Note Purchaser signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Indenture and (subject to
Section 6.1) conclusive in favor of the Trustee and the Issuer, if made in the
manner provided in this Section.

                                      -45-
<PAGE>

         (a) The fact and date of the execution by any person of any such
instrument or writing may be proved in any customary manner of the Trustee.

         (b) The ownership of the Notes shall be proved by the Note Register.

         (c) Any request, demand, authorization, direction, notice, consent,
waiver or other action by a Holder of a Note shall bind each Holder of such Note
issued upon the registration thereof or in exchange therefor or in lieu thereof,
in respect of anything done, omitted or suffered to be done by the Trustee or
the Issuer in reliance thereon, whether or not notation of such action is made
upon such Note.

         SECTION 11.4 NOTICES, ETC., TO TRUSTEE, ISSUER, THE NOTE PURCHASER AND
NOTEHOLDERS. Any request, demand, authorization, direction, notice, consent,
waiver or Act of the Noteholders or the Note Purchaser or other documents
provided or permitted by this Indenture to be made upon, given or furnished to
or filed with:

                  (i) the Trustee by the Note Purchaser, the Noteholders or by
         the Issuer shall be sufficient for every purpose hereunder if
         personally delivered, delivered by overnight courier or mailed
         certified mail, return receipt requested and shall be deemed to have
         been duly given upon receipt of the Trustee at its Corporate Trust
         Office;

                  (ii) the Issuer by the Trustee or by the Note Purchaser or the
         Noteholders shall be sufficient for every purpose hereunder if
         personally delivered, delivered by overnight courier or mailed
         certified mail, return receipt requested and shall deemed to have been
         duly given upon receipt by the Issuer at the Corporate Trust Office of
         the Owner Trustee, with a copy to Consumer Portfolio Services, Inc.
         16355 Laguna Canyon Road, Irvine, California 92618 Attention: Mark
         Creatura, Esq. Confirmation: (888) 785-6691, Telecopy No. (949)
         753-6897 or at such other address previously furnished in writing to
         the Trustee by the Issuer. The Issuer shall promptly transmit any
         notice received by it from the Noteholders or the Note Purchaser to the
         Trustee; or

                  (iii) the Note Purchaser shall be sufficient for any purpose
         hereunder if in writing and delivered by overnight courier or mailed
         certified mail, return receipt requested, or personally delivered or
         telexed or telecopied to the recipient as follows (or such other
         address previously furnished in writing to the Trustee):

                  To the Note Purchaser:

                  Bear, Stearns & Co. Inc.,
                  as agent for Bear, Stearns International Limited
                  383 Madison Ave., 10th Floor
                  Attention:  Clark MacKenzie
                  New York, New York  10179

                  Telephone: 212-272-4076
                  Telecopy:  917-849-1151

                                      -46-
<PAGE>

                  w/ a copy to:

                  Bear, Stearns & Co. Inc.,
                  as agent for Bear, Stearns International Limited
                  383 Madison Ave., 10th Floor
                  Attention:  Michael Solender
                  New York, New York  10179

                  Telephone: 212-272-7850
                  Telecopy:  917-849-10728
                  Telecopy:  212-272-2053

                  (iv) the Noteholders shall be sufficient for any purpose
         hereunder if in writing and delivered by overnight courier or mailed
         certified mail, return receipt requested, or personally delivered or
         telexed or telecopied to the recipient's contact information reflected
         in the Note Register.

                  (v) The Note Purchaser may deliver to the Noteholders any
         notices, reports, Servicer's Certificates or any other documentation
         delivered to the Note Purchaser hereunder or under any Basic Document,
         but is under no obligation to so deliver such documentation and shall
         not be liable for the content thereof.

         SECTION 11.5 WAIVER. Where this Indenture provides for notice in any
manner, such notice may be waived in writing by any Person entitled to receive
such notice with respect to itself only, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by the
Note Purchaser or a Noteholder shall be filed with the Trustee but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such a waiver. In case, by reason of the suspension of regular
mail service as a result of a strike, work stoppage or similar activity, it
shall be impractical to mail notice of any event to the Note Purchaser or a
Noteholder when such notice is required to be given pursuant to any provision of
this Indenture, then any manner of giving such notice as shall be satisfactory
to the Trustee shall be deemed to be a sufficient giving of such notice.

         SECTION 11.6 ALTERNATE PAYMENT AND NOTICE PROVISIONS. Notwithstanding
any provision of this Indenture or the Notes to the contrary, the Issuer may
enter into any agreement with a Holder of a Note or the Note Purchaser providing
for a method of payment, or notice by the Trustee or the Note Paying Agent to
such Holder or the Note Purchaser, that is different from the methods provided
for in this Indenture for such payments or notices, provided that such methods
are reasonable and consented to by the Trustee (which consent shall not be
unreasonably withheld). The Issuer will furnish to the Trustee a copy of each
such agreement and the Trustee will cause payments to be made and notices to be
given in accordance with such agreements.

                                      -47-
<PAGE>

         SECTION 11.7 EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         SECTION 11.8 SUCCESSORS AND ASSIGNS. All covenants and agreements in
this Indenture and the Note by the Issuer shall bind its successors and assigns,
whether so expressed or not. All agreements of the Trustee in this Indenture
shall bind its successors.

         SECTION 11.9 BENEFITS OF INDENTURE. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, the Note Purchaser (which shall be a
third-party beneficiary of this Indenture) and its successors and assigns, and
the Noteholders, and any other party secured hereunder, and any other Person
with an ownership interest in any part of the Trust Estate, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

         SECTION 11.10 SEVERABILITY. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         SECTION 11.11 LEGAL HOLIDAYS. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes, this Indenture or any other Basic Document) payment need
not be made on such date, but may be made on the next succeeding Business Day
with the same force and effect as if made on the date on which nominally due,
and no interest shall accrue for the period from and after any such nominal
date.

         SECTION 11.12 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         SECTION 11.13 COUNTERPARTS. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument. Any signature page to this Indenture containing a manual
signature may be delivered by facsimile transmission or other electronic
communication device capable of transmitting or creating a printable written
record, and when so delivered shall have the effect of delivery of an original
manually signed signature page.

         SECTION 11.14 RECORDING OF INDENTURE. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Trustee or any other counsel reasonably acceptable
to the Trustee) to the effect that such recording is necessary either for the
protection of the Noteholders, the Note Purchaser or any other Person secured
hereunder or for the enforcement of any right or remedy granted to the Trustee
under this Indenture.

                                      -48-
<PAGE>

         SECTION 11.15 ISSUER OBLIGATION. The obligations of the Issuer under
this Indenture and the other Basic Documents shall be full recourse obligations
of the Issuer. Notwithstanding the foregoing, no recourse may be taken, directly
or indirectly, with respect to the obligations of the Issuer or the Trustee on
the Notes, under this Indenture, any other Basic Document or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Trustee in its individual capacity (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director,
employee or agent of the Issuer or the Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer or the Trustee or of any successor
or assign of the Trustee in its individual capacity, except as any such Person
may have expressly agreed (it being understood that the Trustee has no such
obligations in its individual capacity) and except that any such partner, owner
or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure
to pay any installment or call owing to such entity. Nothing contained in this
Section shall limit or be deemed to limit any obligations of the Issuer, the
Purchaser, the Seller or the Servicer hereunder or under any other Basic
Document, as applicable, which obligations are full recourse obligations of the
Issuer, the Purchaser, the Seller and the Servicer.

         SECTION 11.16 NO PETITION. The Trustee, by entering into this
Indenture, hereby covenants and agrees that it will not at any time institute
against the Issuer, or join in any institution against the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States Federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, this
Indenture or any of the Basic Documents.

         SECTION 11.17 INSPECTION. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Note Purchaser, a Noteholder or
the Trustee, during the Issuer's normal business hours, to examine all the books
of account, records, reports, and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees, and independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. Each of the Trustee, the Note Purchaser and the Noteholders shall and
shall cause their respective representatives to hold in confidence all such
information except to the extent disclosure may be required by law (and all
reasonable applications for confidential treatment are unavailing) and except to
the extent that the Trustee may reasonably determine that such disclosure is
consistent with its Obligations hereunder.

         SECTION 11.18 ENTIRE AGREEMENT. This Agreement, together with the other
Basic Documents, including the exhibits and schedules thereto, contains a final
and complete integration of all prior expressions by the parties hereto with
respect to the subject matter hereof and shall constitute the entire agreement
among the parties hereto with respect to the subject matter hereof, superseding
all previous oral statements and other writings with respect thereto.

                                      -49-
<PAGE>

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

                                      PAGE THREE FUNDING LLC, as Issuer

                                      By:______________________________________
                                      Name:____________________________________
                                      Title:___________________________________

                                      WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                      as Trustee

                                      By:______________________________________
                                      Name:____________________________________
                                      Title:___________________________________

                                      -50-
<PAGE>

                                                                       EXHIBIT A

                              VARIABLE FUNDING NOTE

REGISTERED                                Maximum Invested Amount: $150,000,000

No. A-1  _________                            Percentage Interest:_____________%

                       SEE REVERSE FOR CERTAIN CONDITIONS

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

                                      A-1
<PAGE>

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AND SUBJECT TO INCREASES
AND DECREASES AS SET FORTH HEREIN AND IN THE INDENTURE. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

THE NOTE REGISTRAR SHALL NOT REGISTER ANY TRANSFER OR EXCHANGE OF THIS NOTE TO
THE EXTENT THAT UPON SUCH TRANSFER OR EXCHANGE THERE WOULD BE MORE THAN FOUR (4)
PERSONS REFLECTED ON THE NOTE REGISTER AS NOTEHOLDERS.

                             PAGE THREE FUNDING LLC
                              VARIABLE FUNDING NOTE

PAGE THREE FUNDING LLC, a Delaware limited liability company (herein referred to
as the "ISSUER"), for value received, hereby promises to pay to
[________________] (the "NOTEHOLDER"), or its registered assigns, such
Noteholder's pro rata portion (based on the Percentage Interest reflected on the
face of this Note) of the principal sum of ONE HUNDRED FIFTY MILLION DOLLARS
($150,000,000.00) or, if less, the Holders pro rata portion (based on the
Percentage Interest reflected on the face of this Note) of the aggregate unpaid
principal amount outstanding under all of the Notes (whether or not shown on the
schedule attached hereto (or such electronic counterpart maintained by the
Trustee)), which amount shall be payable in the amounts and at the times set
forth in Section 2.8(b) of the Indenture. The Issuer will pay interest on the
Holder's pro rata portion of Advances under all of the Notes at the Note
Interest Rate. Such interest on Advances shall be due and payable on each
Settlement Date until the principal of this Note is paid or made available for
payment, to the extent funds will be available from the Collection Account
processed from and including the preceding Settlement Date to but excluding each
such Settlement Date in respect of (a) an amount equal to interest accrued for
the related Interest Period, which will be equal to the sum of the products, for
each day during the related Interest Period, of (i) the Note Interest Rate for
such date during the Interest Period, (ii) the Aggregate Principal Balance as of
the close of business on such date divided by 360 and (iii) the applicable
Percentage Interest, plus (b) an amount equal to a pro rata portion of any
accrued and unpaid Noteholders' Interest Carryover Shortfall with respect to
prior Interest Periods, with interest on the amount of such Noteholders'
Interest Carryover Shortfall at the Note Interest Rate from the first Business
Day of the related Interest Period. Prior to the Facility Termination Date and
unless an Event of Default shall have occurred, the Issuer shall only be
required to make interest payments on the Invested Amount of the Note to the
holder hereof; provided that the Issuer may, at its option, prepay the Invested
Amount of the Notes, in whole or in part, at any time pursuant to Section 10.1
of the Indenture. Following the occurrence of an Event of Default, the Note
Purchaser and the Majority Noteholders may declare the Invested Amount of the
Notes to be immediately due and payable at par, together with accrued interest
thereon, in accordance with Section 5.2 of the Indenture. Principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

                                      A-2
<PAGE>

The principal of and interest on this Note are payable in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts. This Note does not represent an interest
in, or an obligation of, the Servicer or any affiliate of the Servicer other
than the Issuer.

Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note. Although a summary of certain provisions of the Indenture
are set forth below and on the reverse hereof and made a part hereof, this Note
does not purport to summarize the Indenture and reference is made to the
Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Servicer and the Trustee. A copy of the Indenture may be
requested from the Trustee by writing to the Trustee at: Wells Fargo Bank,
National Association, 6th & Marquette, MAC N9311-161, Minneapolis, Minnesota
55479, Attention: Corporate Trust Services, -- Asset Backed Administration. To
the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the Trustee
whose name appears below by manual signature, this Note shall not be entitled to
any benefit under the Indenture referred to on the reverse hereof, or be valid
or obligatory for any purpose.

                            [Signature page follows.]

                                      A-3
<PAGE>

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

Date: November __, 2005               PAGE THREE FUNDING LLC

                                      By:______________________________________
                                      Name:____________________________________
                                      Title:___________________________________

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is the Note issued under the within-mentioned Indenture.

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

                                     By:______________________________________
                                        Authorized Signature

                                      A-4
<PAGE>

                               REVERSE OF THE NOTE

This Note is the duly authorized Note of the Issuer, designated as its Variable
Funding Note (herein called the "NOTE"), issued under (i) the Indenture, dated
as of November 15, 2005 (such Indenture, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof, is herein called the "INDENTURE"), between the Issuer and Wells
Fargo Bank, National Association, a national banking association, as trustee
(the "TRUSTEE", which term includes any successor Trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the
Issuer, the Trustee, the Note Purchaser and the Noteholders. The Note is subject
to all terms of the Indenture. All terms used in this Note that are defined in
the Indenture, as amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof, shall have the meanings assigned to them
in or pursuant to the Indenture, as so amended, supplemented or otherwise
modified.

"SETTLEMENT DATE" means, with respect to each Accrual Period, the 15th day of
the following calendar month, or if such day is not a Business Day, the
immediately following Business Day, commencing on December 15, 2005.

As described above, the entire unpaid principal amount of this Note shall be due
and payable on the Facility Termination Date. Notwithstanding the foregoing, if
an Event of Default or shall have occurred and be continuing then, in certain
circumstances, principal on the Note may be paid earlier, as described in the
Indenture.

Payments of interest on this Note due and payable on each Settlement Date,
together with the installment of principal then due, if any, and any payments of
principal made on any Business Day in respect of any prepayments, to the extent
not in full payment of this Note, shall be made by wire transfer to the Holder
of record of this Note (or any predecessor Note) on the Note Register as of the
close of business on each Record Date. Any reduction in the principal amount of
this Note (or any predecessor Note) effected by any payments made on any date
shall be binding upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not noted thereon. Final payment of principal (together with
any accrued and unpaid interest) on this Note will be paid to the Noteholders
only upon presentation and surrender of this Note at the Corporate Trust Office
for cancellation by the Trustee.

The Issuer shall pay interest on overdue installments of interest at the Note
Interest Rate (calculated for this purpose using the Default Applicable Margin)
to the extent lawful.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Note may be registered on the Note Register upon
surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Registrar duly executed by the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of authorized
Percentage Interest and in the same aggregate Percentage Interest will be issued
to the designated transferee or transferees. No service charge will be charged

                                      A-5
<PAGE>

for any registration of transfer or exchange of this Note, but the transferor
may be required to pay a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any such registration of transfer
or exchange. Other than exchanges pursuant to Section 9.6 of the Indenture not
involving a transfer.

The obligations of the Issuer under the Indenture, this Note and the other Basic
Documents shall be full recourse obligations of the Issuer. Notwithstanding the
foregoing, the Noteholder, by its acceptance of this Note, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer or the Trustee on the Notes, under the Indenture or
any other Basic Document or any certificate or other writing delivered in
connection herewith or therewith, against (i) the Trustee in its individual
capacity (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of the
Issuer or the Trustee in its individual capacity, any holder of a beneficial
interest in the Issuer or the Trustee or of any successor or assign of the
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Trustee has no such obligations in its
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. Nothing contained in this Section
shall limit or be deemed to limit any obligations of the Issuer, the Purchaser,
the Seller or the Servicer hereunder or under any other Basic Document, as
applicable, which obligations are full recourse obligations of the Issuer, the
Purchaser, the Seller and the Servicer.

Each Noteholder, by its acceptance of this Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder will not institute
against the Issuer, or join in any institution against the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under any United States Federal or state bankruptcy or similar law in connection
with any obligations relating to the Note, the Indenture or the Basic Documents.

Prior to the due presentment for registration of transfer of this Note, the
Trustee and any agent of the Trustee may treat the Person in whose name the Note
(as of the applicable Record Date) is registered as the owner hereof for all
purposes, whether or not the Note be overdue, and neither the Issuer, the
Trustee nor any such agent shall be affected by notice to the contrary.

It is the intent of the Issuer and the Noteholders that, for Federal, State and
local income and franchise tax purposes, this Note will evidence indebtedness of
the Issuer secured by the Collateral. Each Noteholder, by its acceptance of the
Note, agrees to treat the Note for Federal, State and local income and franchise
tax purposes as indebtedness of the Issuer.

The Indenture permits in certain circumstances, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Note Purchaser and the
Noteholders under the Indenture at any time by the Issuer with the consent of
the Note Purchaser and the Majority Noteholders. The Indenture also contains
provisions permitting the Note Purchaser and/or the Majority Noteholders to
waive compliance by the Issuer with certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Note Purchaser and the
Majority Noteholders (or the Holders of any predecessor Note) shall be
conclusive and binding upon the Note Purchaser, the current Noteholders and all

                                      A-6
<PAGE>

future Noteholders and of this Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such
consent or waiver is made upon this Note.

The Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Note Purchaser
and the Majority Noteholders.

The term "ISSUER" as used in this Note includes any successor to the Issuer
under the Indenture.

This Note is issuable only in registered form in denominations as provided in
the Indenture, subject to certain limitations set forth therein.

This Note and the Indenture shall be construed in accordance with the law of the
State of New York, without reference to its conflict of law provisions (other
than Section 5-1401 of the General Obligations Law), and the obligations, rights
and remedies of the parties hereunder and thereunder shall be determined in
accordance with such law.

No reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed, subject
to any duty of the Issuer to deduct or withhold any amounts as required by law,
including any applicable U.S. withholding taxes.

                                      A-7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]