Document:

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                                                                    EXHIBIT 10.1

                           MASTER PURCHASING AGREEMENT

         This Master Purchasing Agreement (this "Agreement") effective as of
this _____ day of _______________, 2001, by and between Transition Leasing
Management, Inc., a Texas corporation ("Acquisition Agent") and Transition Auto
Finance IV, Inc., a Texas corporation ("Buyer").

                              BACKGROUND STATEMENT

         Buyer has no paid employees, and intends to rely upon Acquisition Agent
to acquire assets in the name of, and for the benefit of, Buyer. This Agreement,
under which from time to time Acquisition Agent will acquire on behalf of,
Buyer, and Buyer will agree to buy (i) motor vehicles that will be made subject
to motor vehicle lease contracts and liens on such vehicles securing the
obligations, and (ii) existing lease contract, shall govern the purchase and
transfer of the vehicles and obligations for the benefit of Buyer and the
servicing and other incidents thereof, and each shall be subject to the
warranties, representations and agreements herein.

                             STATEMENT OF AGREEMENT

         In consideration of the mutual covenants contained herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Buyer and Acquisition Agent agree as follows:

    1.   DEFINITIONS. Unless the context requires otherwise, the following terms
shall for all purposes of this Agreement have the meanings hereinafter
specified:

                  a. "CERTIFICATE OF TITLE" shall mean a certificate of title
under the Certificate of Title Act, as amended (Transportation Code, Chapter
501, Vernon's Texas Codes Annotated) or a certificate of title under a statute
of another jurisdiction under the law of which indication of a security interest
on the certificate is required as a condition of perfection.

                  b. "CLOSING DATE" shall mean a business day mutually agreed
upon by Acquisition Agent and Buyer upon which the Contracts will be acquired by
Buyer.

                  c. "CONTRACT" shall mean a valid and enforceable motor vehicle
lease contract that is secured by a lien on a Leased Vehicle and that meets the
purchasing criteria set forth on EXHIBIT A attached hereto.

                  d. "CONTRACT DOCUMENTS" shall mean all documents and proof of
delivery evidencing and relating to the Contracts as Buyer may reasonably
request.

                  e. "DEALER" shall mean the motor vehicle dealer who sold a
Leased Vehicle to the Acquisition Agent or to the Buyer.

                  f. "LEASED VEHICLE" shall mean a new or late model automobile
that is not more than four model years old at the time of lease (including
passenger cars, minivans,

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sport/utility vehicles and light trucks), together with all accessories thereto,
securing an Obligor's obligations under the respective Contract.

                  g. "MASTER COLLECTIONS ACCOUNT" shall be a lockbox account in
the name of and owned by Acquisition Agent, which shall serve to collect all
Contract payments from Obligors and all other receipts relating to Contracts, as
further described and governed in the Servicing Agreement.

                  h. "MONTHLY REPORT CERTIFICATE" shall mean a certificate, in
such form as may be agreed from time to time by Acquisition Agent and Buyer,
signed by an officer of the Acquisition Agent, which shall confirm the adherence
of Acquisition Agent to all terms and conditions of this Agreement since the
date of the most recent previously issued Monthly Report Certificate, and the
conformance of the Contracts acquired by the Buyer in the immediately preceding
calendar month to the purchasing criteria set forth in EXHIBIT A, and shall
include such information regarding such Contracts as may be agreed from time to
time by Buyer and Acquisition Agent, which information may include all or some
of the following: a listing of Contracts setting forth, for each such Contract,
the Contract number, the aggregate unpaid lease payments as of the date acquired
by the Buyer and as of the date of origination, the name of the Obligor, the
maturity date, the name of the Dealer, the vehicle identification number for the
Leased Vehicle, the date on which the Contract was originated, the Purchase
Price, the Dealer's sale price, original cost and sale preparation expenses for
the Leased Vehicle, the amounts of deferred down payments and installments, the
maturity date, the aggregate unpaid lease payments as of the date of acquisition
by the Buyer and a calculation of the various ratios required by the purchasing
criteria set forth on EXHIBIT A.

                  i. "OBLIGOR" shall mean the person who has leased a Leased
Vehicle subject to a Contract and who is indebted under that Contract.

                  j. "SERVICING AGREEMENT" shall mean the Servicing Agreement
duly executed by Acquisition Agent and Buyer and dated of even date herewith.

    2.   PROCEDURE FOR PURCHASE. At any time and from time to time until the
termination of this Agreement, the Buyer may request the Acquisition Agent (i)
to solicit from Dealers offers to sell to Buyer vehicles eligible to become
Leased Vehicles, (ii) to solicit persons to become Obligors under Contracts, and
(iii) to do the work needed to negotiate and originate Contracts for and on
behalf of Buyer. Acquisition Agent shall be obligated to use reasonable efforts
to perform those functions on behalf of Buyer as soon as practicable following
any such request by the Buyer. Buyer shall be obligated to purchase vehicles
eligible to become Leased Vehicles from Dealers through the Acquisition Agent,
in accordance with the terms of this Agreement, up to a maximum aggregate
Purchase Price of any dollar amount that may be specified by the Buyer in its
request.

         Payment of the purchase price by Buyer shall be made at the time of the
purchase by Acquisition Agent on Buyer's behalf of each Leased Vehicle. At all
times during the term of this Agreement, Buyer shall retain the right to audit
any or all Contracts for adherence to the terms and conditions of this
Agreement. Acquisition Agent shall cooperate in all material respects with

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the audit of such Contracts. Within ninety (90) days following the end of each
calendar year, Acquisition Agent shall supply a compliance letter from its
independent certified public accounting firm stating that purchasing activities
and transactions covered under this Agreement were performed in all material
respects in accordance with its terms and conditions. Buyer shall be reimbursed
by Acquisition Agent, and receive a repurchase price equal to the Buyer's
original purchase price less any lease payments made on such Contract after the
Buyer's acquisition of the Contract, for any and all Contracts that are sold to
Buyer that do not meet the terms and conditions set forth in this Agreement.

    3.   PURCHASE PRICE; COMPENSATION. The Purchase Price (herein so called)
payable by the Buyer for each Leased Vehicle or Contract shall be an amount set
forth in the Monthly Report Certificate. The Purchase Price for a Leased Vehicle
shall never exceed that amount that a Dealer shall receive from bank draft upon
the delivery of the Leased Vehicle.

         Buyer shall pay to Acquisition Agent, on or before the fifteenth day of
each month, a purchase administration fee of $100 (the "Purchase Administration
Fee"), a documentary fee of $50 (the "Documentary Fee"), and a marketing fee
equal to 57.5% of the Obligor's down payment with respect to any given Contract,
as to each Contract acquired by Buyer from or through Acquisition Agent under
this Agreement during the prior calendar month.

         4. TERM. This Agreement shall commence as of the date first written
above and shall continue until _______________, 2004, unless mutually extended
or terminated; provided, however, that in the event of a termination of the
Servicing Agreement, Buyer shall be permitted to terminate this Agreement on ten
days' prior written notice to the Acquisition Agent.

         5. OTHER DOCUMENTS. Acquisition Agent or Buyer shall execute and
deliver any and all other documents, opinions, certificates, and evidence of the
Contracts as may be reasonably requested by Buyer in connection with the
transactions contemplated by this Agreement.

         6. REPRESENTATIONS AND WARRANTIES OF ACQUISITION AGENT. In order to
induce Buyer to enter into this Agreement and to purchase Contracts, Acquisition
Agent represents, warrants and covenants to Buyer as follows:

                  a. Acquisition Agent is a corporation duly organized, validly
existing and in good standing under the laws of the State of Texas. Acquisition
Agent is duly qualified to transact business, and is in good standing, in each
jurisdiction where the nature of its business or properties requires such
qualification and where the failure to so qualify could have a material adverse
effect on the business operations or financial condition of Acquisition Agent.
Acquisition Agent has all requisite power, authority, licenses and permits
material to the ownership and operations of its properties and to the carrying
on of its business.

                  b. Acquisition Agent has all requisite corporate power and
authority to execute and deliver, and to perform under, this Agreement.

                  c. The execution and delivery of, and performance by
Acquisition Agent

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under, this Agreement and any and all related documents have been duly
authorized by all requisite corporate action of Acquisition Agent and are not in
contravention of any applicable law.

                  d. This Agreement constitutes the valid, legal and binding
obligation of Acquisition Agent, enforceable against Acquisition Agent in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereinafter in effect, affecting the enforcement of creditors' rights generally.

                  e. No consent, approval or authorization of, registration with
or declaration to any tribunal, person or entity, including, without limitation,
the Obligors on the Contracts, or approval by the stockholders of Acquisition
Agent, is required in connection with the execution and delivery of this
Agreement or any Assignment or in connection with the performance by Acquisition
Agent of any covenant or agreement contained herein or in any Monthly Report
Certificates.

                  f. The execution, delivery, performance of or compliance with
the terms of this Agreement or any and all Monthly Report Certificates will not
cause Acquisition Agent to be in default or in violation (nor has any event or
condition occurred that, with notice or lapse of time or both, would constitute
a default or violation) under (a) any credit or loan agreement, indenture,
mortgage or deed of trust, or other material agreement, undertaking or
arrangement (written or oral) to which it is a party or by which it may be bound
or (b) its Articles of Incorporation or Bylaws.

                  g. Acquisition Agent is not, and the execution, delivery,
performance of or compliance with the terms of this Agreement and any and all
activities governed herein will not cause Acquisition Agent to be, in violation
of any laws in any respect that could have any material adverse effect
whatsoever upon the validity, performance or enforceability of any of the terms
of this Agreement.

                  h. There is no litigation or action at law or in equity
pending, or, to its knowledge, threatened against it and no proceeding of any
kind is pending or, to its knowledge, threatened, by any federal, state or local
governmental or administrative body, which will or might materially affect
Acquisition Agent or its ability to consummate the transactions contemplated
hereby.

                  i. Each Contract will conform with, and in acting with respect
to such Contract, Acquisition Agent will have complied in all material respects
with, all applicable federal, state and local laws, regulations and official
rulings.

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                  j. Each Contract (a) shall have been originated in the United
States of America and covers a Leased Vehicle purchased from a Dealer in the
retail sale of the Leased Vehicle in the ordinary course of such Dealer's
business, shall have been fully and properly executed by the parties thereto and
the full and complete title to such Leased Vehicle shall have been validly
assigned by such Dealer to Acquisition Agent as Buyer's Agent, or directly to
Buyer in accordance with its terms, (b) shall reflect Buyer as the owner of the
Leased Vehicle and shall have created or shall create a valid, subsisting, and
enforceable first priority security interest in favor of Buyer in the Leased
Vehicle and a valid, subsisting and enforceable second priority security
interest in favor of the Trustee in the Leased Vehicle, (c) shall contain
customary and enforceable provisions such that the rights and remedies of the
holder thereof shall be adequate for realization against the collateral of the
benefits of the security, (d) shall provide for, in the event that such Contract
is prepaid, a prepayment that fully pays the principal balance, (e) met at the
time of the Leased Vehicle's purchase from the originating Dealer in all
material respects all purchasing criteria set forth on EXHIBIT A attached
hereto, and (f) shall have been validly assigned to Buyer.

                  k. Each Contract and the sale of the Leased Vehicle shall have
complied at the time it was originated or made and at the execution of this
Agreement shall comply in all material respects with all requirements of
applicable federal, state, and local laws and regulations hereunder, including,
without limitation, usury laws, the Federal Truth-In-Lending Act, the Consumer
Leasing Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the
Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal
Trade Commission Act, the Federal Reserve Board's Regulations B, M and Z, and
state adaptations of the National Consumer Act and of the Uniform Consumer
Credit Code, and other consumer laws and equal credit opportunity and disclosure
laws.

                  l. Each Contract shall represent the genuine, legal, valid and
binding payment obligation in writing of the Obligor, enforceable by the holder
thereof in accordance with its terms subject to the effects of bankruptcy,
insolvency, reorganization, or other similar laws affecting the enforcement of
creditors' rights generally.

                  m. (i) The Certificate of Title for such Leased Vehicle shows
(or if a new or replacement Certificate of Title is applied for with respect to
such Leased Vehicle, the official receipt from the responsible state or local
government authority indicating that an application has been made and that the
Certificate of Title, when issued, will show (within 30 days) the Buyer as the
owner and the holder of a first priority security interest in such Leased
Vehicle, (ii) within 30 days after the Purchase Date of the Contract or the
Leased Vehicle, the Certificate of Title for such Leased Vehicle will show the
Buyer as the owner and the holder of a first priority security interest in such
Leased Vehicle, and the Trustee as the holder of a second priority security
interest in such Leased Vehicle, and (iii) the Buyer, upon delivery or the
transfer to it, will have a valid and enforceable first priority security
interest in the Leased Vehicle to the same extent as the security interest of
the Person named as the original secured party under the related Contract and
the Trustee will have a valid and enforceable second priority security interest.

                  n. No provision of a Contract shall have been waived, without
the express written consent of the Company.

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                  o. No right of rescission, setoff, counterclaim, or defense
shall have been asserted or threatened with respect to any Contract.

                  p. It is the intention of the Acquisition Agent that the
transfer and assignment herein contemplated constitute a sale of the Leased
Vehicles and Contracts to Buyer and that the beneficial interest in and title to
the Contracts not be part of Acquisition Agent's estate in the event of the
filing of a bankruptcy petition by or against Acquisition Agent under bankruptcy
law. Immediately prior to the transfer and assignment to Buyer herein
contemplated, Dealer had good and marketable title to each Leased Vehicle free
and clear of all liens, encumbrances, security interests, and rights of others
and, immediately upon the transfer thereof, Buyer shall have good and marketable
title to each Leased Vehicle and each Contract, free and clear of all liens,
encumbrances, security interests, and rights of others.

                  q. No Contract shall have been originated in, or shall be
subject to the laws of, any jurisdiction under which the sale, transfer, and
assignment of such Contract under this Agreement or pursuant to transfers of the
Contract, shall be unlawful, void, or voidable.

         7.      REPRESENTATIONS AND WARRANTIES OF BUYER. In order to induce
Acquisition Agent to enter into this Agreement and to purchase Leased Vehicles
and Contracts, Buyer represents, warrants and covenants to Acquisition Agent as
follows:

                  a. Buyer is a corporation duly organized, validly existing and
in good standing under the laws of the State of Texas. Buyer is duly qualified
to transact business, and is in good standing, in each jurisdiction where the
nature of its business or properties requires such qualification and where the
failure to so qualify could have a material adverse effect on the business
operations or financial condition of Buyer. Buyer has all requisite power,
authority, licenses and permits material to the ownership and operation of its
properties and to the carrying on of its business.

                  b. Buyer has all requisite corporate powers and authority to
execute and deliver, and to perform under, this Agreement.

                  c. The execution and delivery of, and performance by Buyer
under, this Agreement and any and all related documents have been duly
authorized by all requisite corporate actions of Buyer and are not in
contravention of any applicable law.

                  d. This Agreement constitutes the valid, legal and binding
obligation of Buyer, enforceable against Buyer in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect,
affecting the enforcement of creditors' rights generally.

                  e. No consent, approval or authorization of, registration with
or declaration to any tribunal, person or entity, including, without limitation,
the Obligors on the Contracts, or approval by the stockholders of Buyer, is
required in connection with the execution and delivery of this Agreement or in
connection with the performance by Buyer of any covenant or agreement contained
herein.

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                  f. The execution, delivery, performance of or compliance with
the terms of this Agreement will not cause Buyer to be in default or in
violation (nor has any event or condition occurred that, with notice or lapse of
time or both, would constitute a default or violation) under (a) any credit or
loan agreement, indenture, mortgage or deed of trust, or other material
agreement, undertaking or arrangement (written or oral) to which it is a party
or by which it may be bound or (b) its Articles of Incorporation or bylaws.

                  g. Buyer is not, and the execution, delivery, performance of
or compliance with the terms of this Agreement and any and all activities
governed herein will not cause Buyer to be, in violation of any laws in any
respect that could have a material adverse effect whatsoever upon the validity,
performance or enforceability of any of the terms of this Agreement.

                  h. There is no litigation or action at law or in equity
pending, or, to its knowledge, threatened against it and no proceeding of any
kind is pending or, to its knowledge, threatened, by any federal, state or local
governmental or administrative body, which will or might materially affect Buyer
or its ability to consummate the transactions contemplated hereby.

         8.       SERVICING AGREEMENT; COLLECTION OF PURCHASED RECEIVABLES.
Concurrently with the execution of this Agreement, Acquisition Agent and Buyer
shall enter into the Servicing Agreement, whereby Acquisition Agent, as an
independent contractor, will collect, in accordance with the terms and
conditions set forth therein, for the account of Buyer all payments due to Buyer
under all Contracts.

         9.       NO ASSUMPTION. The Acquisition Agent does not, and shall not
be deemed to, assume any obligations of the Buyer relating to the transactions
contemplated herein. Buyer does not, and shall not be deemed to assume any
obligations of Acquisition Agent relating to the Contracts or the transactions
giving rise to the Contracts. To the extent that Acquisition Agent has not
completed performance of any contract pursuant to which a Contract was
generated, Acquisition Agent hereby covenants and agrees to complete such
contract in order that the Obligor will continue not to have any rights to
set-off, counterclaim or dispute. Accordingly, Acquisition Agent hereby
indemnifies and holds harmless Buyer, its successors and assigns, and their
respective officers, directors, agents and attorneys against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, expenses and disbursements of any kind or nature whatsoever that
may be imposed on, incurred by or asserted against Buyer, its successors and
assigns, or their respective officers, directors, agents and attorneys due to
(i) any breach by Acquisition Agent of its representations, warranties or
covenants provided for in this Agreement or in the Servicing Agreement, or (ii)
any action or inaction of Acquisition Agent, or through Acquisition Agent, in
any way relating to, or arising out of, this Agreement, any and all Monthly
Report Certificates, or any of the transactions contemplated herein or therein
or the creation or collection or enforcement of any of the Contracts.
Acquisition Agent, however, does not assume the risk of uncollectibility and
does not indemnify Buyer, its successors and assigns, and their respective
officers, directors, agents and attorneys, against, the uncollectibility of all
or any part of the Contracts as against the Obligor thereof, except for
uncollectibility resulting from a violation of state, federal or local laws or
regulations and except as a result of a breach by Acquisition Agent of any
warranty, representation or covenant

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contained herein. The indemnities contained in this Section shall survive any
termination of this Agreement.

         10.      SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns. Acquisition Agent may contract with industry-qualified parties for
the performance of any or all of its obligations to acquire and service
Contracts as contemplated and governed herein. Any such contract, however, shall
not relieve Acquisition Agent from liability for its obligations hereunder.

         11.      MODIFICATIONS AND WAIVERS. No delay on the part of any party
in exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver of any right, power or privilege hereunder operate
as a waiver of any other right, power or privilege hereunder, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
any other or further exercise thereof, or the exercise of any other right, power
or privilege hereunder. All rights and remedies herein provided are cumulative
and are not exclusive of any rights or remedies that the parties hereto may
otherwise have at law or in equity. No waiver shall be valid in the absence of
the written and signed consent of the party against which enforcement of such is
sought.

         12.      NOTICE. Except as otherwise specifically provided herein, any
notice hereunder shall be in writing (including telegraphic or telecopy
communication) and, if mailed, shall be deemed to be given when sent by
registered or certified mail, postage prepaid, or if telegraphed when delivered
to the telegraph company, or if telecopied when transmitted, or otherwise when
delivered in person to the addressee and a receipt given for, in all such
instances addressed to the respective party as follows:

                  To Acquisition Agent:    Transition Leasing Management, Inc.
                                           8144 Walnut Hill Lane, Number 680
                                           Dallas, Texas 75231
                                           Attention: Ken Lowe, President

                  To Buyer:                Transition Auto Finance IV, Inc.
                                           8144 Walnut Hill Lane, Number 680
                                           Dallas, Texas 75240
                                           Attention: Ken Lowe, President

or at such other address as the addressees may, by written notice received by
the other party hereto, designate as the appropriate address for purposes of
notice hereunder.

         13.      AMENDMENT. This Agreement may be amended, supplemented or
modified only with the written consent of the parties hereto.

         14.      CHOICE OF LAW. THIS AGREEMENT, AND THE VALIDITY AND
ENFORCEABILITY HEREOF, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
SUBSTANTIVE LAWS OF THE STATE OF TEXAS.

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         15.      SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under present or future laws effective during
the term of this Agreement, the legality, validity and enforceability of the
remaining provisions of this Agreement shall not be affected thereby, and in
lieu of each such illegal, invalid or unenforceable provision there shall be
added automatically as a part of this Agreement a provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible and be
legal, valid and enforceable.

         16.      ENTIRE AGREEMENT. This instrument embodies the entire
agreement between the parties relating to the subject matter hereof and
supersedes all prior agreements and understandings, if any, relating to the
subject matter hereof.

         17.      COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which for all purposes is to be deemed an original.

         18.      SURVIVAL. All covenants, agreements, undertakings,
indemnities, representations and warranties made herein shall survive both the
execution and the termination hereof, and shall not be affected by any
investigation made by any party.

         19.      FURTHER ASSURANCES. Acquisition Agent shall furnish to Buyer
at the request of the Buyer such additional information concerning the Contracts
as Buyer may from time to time reasonably request in order to establish
compliance with the terms and conditions of this Agreement, and shall execute,
acknowledge and deliver, or cause to be executed, acknowledged or delivered,
such supplements hereto and such further instruments as may reasonably be
required or appropriate and permitted by law to further express the intention,
or to facilitate the performance of, this Agreement.

                                         TRANSITION LEASING MANAGEMENT, INC.

                                         By:
                                            --------------------------------
                                             Ken Lowe, President

                                         TRANSITION AUTO FINANCE IV, INC.

                                         By:
                                            --------------------------------
                                             Ken Lowe, President

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                           MASTER PURCHASING AGREEMENT
                                    EXHIBIT A

                           QUALIFIED CONTRACT CRITERIA

         The following purchasing criteria shall govern all purchases of Leased
Vehicles by Buyer and no Leased Vehicle or Contract shall be acquired that does
not meet the following criteria without specific written permission of
Acquisition Agent and Buyer.

I.       VEHICLE CRITERIA.

         a. No vehicle that is to become a Leased Vehicle may be purchased by
the Buyer if the vehicle is more than four model years old. No Contract may be
acquired by the Buyer if the Contract is secured by a Leased Vehicle that, at
the time of lease, was more than four model years old.

         b. The purchase price payable by the Buyer for each vehicle that is to
become a Leased Vehicle (and thus to become subject to a Contract) shall never
exceed that amount that a Dealer shall receive from bank draft upon the delivery
of the Leased Vehicle.

II.      DOWN PAYMENT RATIO. Obligors on all Contracts must have made a payment
on the Contract in cash and/or net trade-in allowance equal to not less than 15%
or, in the case of Leased Vehicles which are four model years old 20%, of the
actual purchase price paid to the dealer who sold the related Leased Vehicle to
the Buyer.

         a. Each Contract must have an original term of 48 months or less.

         b. Each Contract shall be in the form of industry-standard consumer
automobile lease contracts.

IV.       CREDIT CRITERIA.

         a. With respect to each Obligor on each Contract, the Acquisition Agent
shall perform all credit checks and reviews that are standard for the motor
vehicle lease industry and shall supply the verification information to the
Buyer at the time of acquisition of each Contract.

         b. In addition to the credit checks and reviews set forth in IV.a.
above, each Obligor must satisfy the following criteria:

                  1. Verifiable home telephone number in Obligor's residence;

                  2. Residence:

                        (A) Evidence of purchase, lease or rental agreement in
                     Obligor's name;

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                        (B) Stability- Review time lived at last two addresses,
                     as well as time in area;

                  3. Employment: At least one year with last two employers;

                  4. Obligor has verifiable income (check stub, W-2, 1099, tax
return, or bank statements);

                  5. Ratio of Obligor's net spendable income to gross generally
exceed 60%;

                  6. References:

                        (A) Five relatives;

                        (B) Five personal;

                  7. Current Texas driver's license;

                  8. If a previous bankruptcy, must have been discharged at
least one year, or if open, need letter of permission from bankruptcy trustee;

                  9. Exceptions for first-time buyers.

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                                                                    EXHIBIT 10.2

                               SERVICING AGREEMENT

         THIS SERVICING AGREEMENT, dated as of _______________, 2001 (the
"Servicing Agreement"), is entered into by and between Transition Leasing
Management, Inc., a Texas corporation ("Transition Leasing"), in its capacity as
servicer of certain motor vehicles lease contracts (the "Servicer"), and
Transition Auto Finance IV, Inc., a Texas corporation ("Buyer").

                                   WITNESSETH:

         WHEREAS, subject to the terms and conditions of that certain Master
Purchase Agreement dated of even date herewith between Transition Leasing and
Buyer relating to the acquisition of certain motor vehicles and motor vehicle
lease contracts by Buyer from or through Transition Leasing (the "Master
Purchase Agreement"). All capitalized terms used herein and not otherwise herein
defined shall have the same meaning as set forth in the Master Purchase
Agreement or that certain Indenture between Buyer and Trust Management, Inc.
Buyer desires to acquire certain Leased Vehicles and Contracts that will be
described in Monthly Report Certificates to be delivered by Transition Leasing
to Buyer pursuant to Section 2 of the Master Purchase Agreement; and

         WHEREAS, Buyer has requested the Servicer to undertake the collection
and servicing responsibilities with respect to any and all of the Contracts and
to account to Buyer therefor as provided herein;

         NOW, THEREFORE, the parties agree as follows:

         1. APPOINTMENT OF AND ACCEPTANCE BY THE SERVICER OF SERVICING
OBLIGATIONS.

                  A. The Servicer, on behalf of Buyer, shall during the term of
the Servicing Agreement manage, administer and collect each of the Contracts and
shall exercise discretionary powers involved in such management, administration
and collection, and shall bear all costs and expenses incurred in connection
therewith, that may be necessary or advisable in carrying out the Agreement. In
the management, administration and collection of the Contracts, the Servicer
shall use at least the same care and apply the same policies that it would
exercise if it owned the Contracts, including but not limited to the servicing
criteria as set forth in EXHIBIT A attached hereto.

                  B. The Servicer shall have the full power and authority to do
those things in connection with such servicing, administration and collection
activities that it may deem necessary or desirable in order to maximize receipts
collected from Obligors or foreclosure and sale of Lease Vehicles underlying the
Contracts. Without limiting the generality of the foregoing, the Servicer is
hereby authorized and empowered to execute and deliver, on behalf of Buyer,
instruments of satisfaction or cancellation, or of partial or full release or
discharge, and all other comparable instruments, in order to evidence payments
received with respect to the Contracts and, after the delinquency of any
Contracts and to the extent permitted under and in compliance with applicable
law and regulations, to commence enforcement proceedings with respect to such
Contracts; PROVIDED, HOWEVER, that the Servicer shall not commence any

<PAGE>   2

legal action against an Obligor in the name of Buyer without the prior written
consent of Buyer, which Buyer shall furnish the Servicer to carry out its
servicing and administrative duties hereunder.

         2. TERM. The Servicing Agreement shall commence as of the date first
written above and shall continue so long as the Buyer has any outstanding
Contracts that remain to be collected, absent a Servicer Event of Default (as
defined herein below).

         3. COMPENSATION. In exchange for the services provided to Buyer as
described and governed herein, Servicer shall receive on or before the fifteenth
day of the month following a month in which such services are provided, and upon
receipt by Buyer of all required, duly prepared and properly executed Monthly
Report Certificates from Acquisition Agent, a Contract Servicing Fee (herein so
called) equal to Thirty-Five and 00/100 Dollars ($35.00) times the aggregate
number of Contracts serviced by Servicer during the previous month. Such
aggregate number of Contracts shall equal the sum of all Contracts identified in
the Monthly Report Certificates, less all Contracts that have been previously
paid in full by their Obligors, and less all Contracts in which an Obligor
default has occurred and Servicer has assigned the related Leased Vehicle for
repossession.

         Additionally, any third-party expenditures pursuant to Section II(C)
and III(A) of EXHIBIT A to the Servicing Agreement with respect to any
particular Contract shall be paid for from the proceeds from collection or from
resale of the repossessed Leased Vehicle relating to that Contract.

         4. REPRESENTATIONS AND WARRANTIES OF THE SERVICER. The Servicer
represents, warrants and covenants to Buyer that:

                  A. ORGANIZATION AND GOOD STANDING. The Servicer is a
corporation duly organized, existing and in good standing under the laws of
Texas, and has full corporate power, authority and legal right to own its
properties and conduct its business as such properties are presently owned and
such business is presently contemplated, and to execute, deliver and perform its
obligations under the Servicing Agreement.

                  B. DUE QUALIFICATION. The Servicer is duly qualified and has
registered as a foreign corporation in each state where such qualification is
required in order to service the Contracts as required by the Servicing
Agreement and has obtained all necessary licenses, approvals or consents as are
required under applicable law to perform its duties hereunder.

                  C. DUE AUTHORIZATION. The execution, delivery and performance
of the Servicing Agreement has been duly authorized by the Servicer by all
necessary corporate action on the part of the Servicer.

                  D. BINDING OBLIGATION. The Servicing Agreement constitutes a
legal, valid and binding obligation of the Servicer, enforceable in accordance
with its terms, except as

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<PAGE>   3

enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereinafter in effect,
affecting the enforcement of creditors' rights in general and such
enforceability may be limited by general principles of equity (whether
considered in a proceeding at law or in equity).

                  E. NO VIOLATION. The execution and delivery of the Servicing
Agreement by the Servicer and the performance of the transactions contemplated
by the Servicing Agreement and the fulfillment of the terms hereof applicable to
the Servicer, will not conflict with, violate, result in any breach of any of
the material terms and provisions of, or constitute (with or without notice or
lapse of time or both) a default under, any requirement of law applicable to the
Servicer or any indenture, contract, agreement, mortgage, deed of trust or other
instrument to which the Servicer is a party or by which it is bound.

         5. COVENANTS OF THE SERVICER. From and after the date hereof until such
time as the Servicing Agreement terminates, Servicer, as an independent
contractor, shall at its own expense, direct all Obligors on the Contracts to
remit all collections and payments directly to, or otherwise cause all payments
on the Contracts to be deposited in, Servicer's Master Collections Account.
Servicer shall have no ownership in or authority to amend, modify, change or
terminate the Master Collections Account without the prior written consent of
the Buyer. Servicer agrees and covenants that all Obligors will utilize payment
books with remittance instructions or monthly statements directing all payments
to be remitted directly to the Master Collections Account, and Servicer
additionally agrees that all cash, checks, notes, drafts or other items that it
receives otherwise than through the Master Collections Account attributable to
the Contracts including proceeds from resale of repossessed Leased Vehicles,
Leased Vehicles returned upon the expiration of their lease terms and recoveries
on insurance claims, shall be deposited in the Master Collections Account within
two business days of receipt.

         The Servicer acknowledges that any collections or proceeds from the
Contracts in the Master Collection Account, or otherwise in the possession or
control of the Servicer, are the Buyer's property and subject to the security
interest granted to the Trustee under the Indenture. In holding such proceeds
and collections, the Servicer agrees to act as custodian and bailee of the Buyer
and the Trustee at all times. The Servicer agrees, for the benefit of the Buyer,
the Trustee and the holders of the Notes, to act as such custodian and bailee,
and to hold and deal with such proceeds and collections, as custodian and bailee
for the Buyer and the Trustee, in accordance with the provisions of the
Indenture. It is intended that the Trustee, as a secured party, shall be deemed
to have possession of such proceeds and collections for purposes of Section
9-305 of the UCC of the state in which such property is located.

                  A. OPERATIONS. The Servicer shall collect the Contracts in an
orderly and efficient manner consistent with good business practices and in
accordance with all applicable federal, state and local laws and regulations.

                  B. RECORDS. So long as Buyer has not given notice of
termination pursuant to SECTION 9, the Servicer shall (i) hold in trust and
safely keep all Contract Closing

                                       3
<PAGE>   4

Documents and such other documents as may be required for the enforcement of the
Contracts; (ii) keep such accounts and other records as will enable Buyer to
determine the status of the Contracts; (iii) keep such books and records at its
offices identified in SECTION 14 herein; and (iv) permit Buyer and its
representatives at any time to inspect, audit, check and make abstracts from
Servicer's accounts, records, correspondence and other papers pertaining to the
Contracts, together with the account balance of such accounts and the payment
history related thereto. The Servicer shall provide Buyer with monthly reports
updating the information relating to account balances and activity and
certifying the amounts collected on the Contracts during the preceding month.

                  C. CONTINUATION STATEMENTS. If Buyer so requests, the Servicer
shall execute and file documents that shall reflect Buyer as the owner of the
Leased Vehicle, including registration of the Certificates of Title in the name
of Buyer and/or any other documents requested by Buyer or that may be required
by law to preserve fully and protect the interest of Buyer in and to the
Contracts.

                  D. PRINCIPAL EXECUTIVE OFFICE. The Servicer shall not, without
providing thirty days' notice to Buyer, and without filing such amendments to
any previously filed financing statements as Buyer may require, (i) change the
county where its principal executive office or the offices where the records
relating to the Contracts are kept, or (ii) change its name, identity or
corporate structure in any manner that would, could or might make any financing
statement or continuation statement filed by Buyer or the Servicer or any
provision hereof seriously misleading within the meaning of Section 9-402(7) of
any applicable enactment of the Uniform Commercial Code.

                  E. NO IMPAIRMENT. The Servicer will duly fulfill all
obligations on its part to be fulfilled under or in connection with each
Contract and will do nothing to materially impair the rights of Buyer in the
Contracts.

                  F. COMPLIANCE WITH LAW. The Servicer will comply, in all
material respects, with all acts, rules, regulations, orders, decrees and
directions of any governmental authority applicable to the Contracts or any part
thereof; PROVIDED, HOWEVER, that the Servicer may contest any act, regulation,
order, decree or direction in any reasonable manner that shall not materially
and adversely affect the rights of Buyer in the Contracts. The Servicer will
comply, in all material respects, with any obligation of a holder of a Contract
to the Obligor thereof arising under such Contract or under applicable law.

                  G. SECURITY INTEREST. Except for the transfers of Contracts to
the Buyer under the Master Purchase Agreement, the Servicer will not sell,
pledge, assign or transfer to any other person, or grant, create, incur, assume
or suffer to exist any lien on any Contracts, or the books or records relating
to any Contracts, or any interest therein; the Servicer will immediately notify
Buyer of the existence of any lien on any Contracts; the Servicer shall defend
the right, title and interest of Buyer in, to and under the Contracts, whether
now existing or

                                       4
<PAGE>   5

hereafter transferred to Buyer, against all claims of third parties claiming
through or under the Servicer.

                  H. PAYMENT OF FEES AND EXPENSES OF TRUSTEE. The Servicer
shall, if the Buyer does not so pay, pay the fees and expenses of the Trustee
under the Indenture as such fees and expenses become payable from time to time
pursuant to Section 7.7 of the Indenture, and hereby agrees to indemnify the
Trustee and its agents as provided in said Section 7.7. The Servicer shall be
entitled to seek reimbursement for such fees and expenses from any funds of the
Buyer that are not subject to the lien of the Indenture.

                  I. SERVICING COMPENSATION. As compensation for the performance
of its obligations under the Servicing Agreement and subject to the terms of
this SECTION 5(I), the Servicer shall be entitled to receive payment of the
Servicing Fees from the Buyer, out of amounts available for that purpose in the
Operating Account pursuant to Section 4.2 of the Indenture. Payment of such
Servicing Fees shall be conditioned upon the availability in the Operating
Account of amounts intended for such purpose after satisfaction of all higher
priority applications of such funds under Section 4.2(f) of the Indenture and
after creation of a reserve to pay all interest due on the Outstanding
Securities on the next Payment Date, any deficiency being carried over and not
payable (without accountability for interest) until sufficient amounts become
available for that purpose in the Operating Account. The Servicer shall pay all
expenses incurred by it in connection with its servicing activities under the
Servicing Agreement and shall not be entitled to reimbursement of such expenses
except to the extent they constitute Liquidation Expenses and can be reimbursed
out of related Liquidation Proceeds.

                  J. REALIZATION UPON DEFAULTED CONTRACTS. In accordance with
the servicing procedures specified in the Servicing Agreement, the Servicer
shall repossess, or otherwise comparably convert the ownership of, any Leased
Vehicle securing a Defaulted Contract and as to which no satisfactory
arrangements can be made for collection of delinquent payments pursuant to the
Servicing Agreement. In connection with such repossession or other conversion,
the Servicer shall follow such practices and procedures as it shall deem
necessary or advisable and as shall be normal and usual for responsible holders
of lease contracts and as shall be in compliance with all applicable laws, and,
in connection with the repossession of any Leased Vehicle or any Defaulted
Contract, may commence or prosecute any judicial proceedings in respect of such
Contract in its own name, or if the Servicer deems it necessary, in the name of
the Buyer or the Trustee, on behalf of the Buyer or on behalf of the Trustee.
The Servicer's obligations under this Section are subject to the provision that,
in the case of damage to a Leased Vehicle from an insured cause, the Servicer
shall not be required to expend its own funds in repairing such motor vehicle
unless it shall determine (i) that such restoration will increase the
Liquidation Proceeds of the related Contract, after reimbursement to itself for
such expenses, and (ii) that such expenses will be recoverable by it either as
Liquidation Expenses or as expenses recoverable under an applicable insurance
policy. The Servicer shall be responsible for all other costs and expenses
incurred by it in connection with any action taken in respect of a Defaulted
Contract; provided, however, that it shall be entitled to reimbursement of such
costs and expenses to the extent they constitute Liquidation Expenses or
expenses recoverable under an

                                       5
<PAGE>   6

applicable insurance policy. All Liquidation Proceeds (net of Liquidation
Expenses) and Insurance Proceeds (net of expenses incurred by the Servicer and
recoverable under the related insurance policy and net of the portion thereof
applied to the repair of any Leased Vehicle or released to an Obligor in
accordance with the Servicer's normal servicing procedures) shall be deposited
in the Master Collections Account to the extent required by the Servicing
Agreement.

                  K. APPOINTMENT OF CUSTODIAN FOR CONTRACT DOCUMENTS. Except as
otherwise provided in the Indenture, upon delivery of the Contract Documents to
the Trustee for any Contracts purchased by the Buyer under Section 4.3 of the
Indenture, possession of the Contract Documents will be retained by the Trustee
or any other financial institution appointed by the Buyer and the Trustee to act
as custodian and bailee of the Contract Documents for the Trustee and the Buyer.
If another financial institution is appointed, it is intended that the Trustee,
as secured party, shall be deemed to have possession of the Contract Documents
for purposes of Section 9-305 of the UCC of the state in which the Contract
Documents are located.

                  L. COLLECTING TITLE DOCUMENTS NOT DELIVERED AT THE CLOSING
DATE. If the Title Document for a Leased Vehicle does not reflect the Buyer as
owner and first lienholder and the Trustee as second lienholder at the time of
the Buyer's purchase direct from a Dealer of the Leased Vehicle, the Servicer
shall confirm, prior to the Buyer's purchase, that an appropriate application
has been made to transfer the title of the Title Document to the Buyer with such
Title Document reflecting the Buyer as owner and first lienholder and the
Trustee as second lienholder.

         In the case of any Contract in respect of which the Title Document for
the related Leased Vehicle showing the Buyer as owner and first lienholder and
the Trustee as second lienholder has been applied for in connection with the
purchase of the Contract, the Servicer shall use reasonable efforts to obtain
such Title Document and promptly upon receipt thereof to make application for
the transfer of the ownership noted thereon to the Buyer and the second lien in
favor of the Trustee. In the case of any Contract in respect of which the Title
Document for the related Leased Vehicle showing the Buyer as owner and first
lienholder and the Trustee as second lienholder has been applied for in
connection with the purchase of the Contract or thereafter, the Servicer shall
use reasonable efforts to obtain such Title Document and to deliver it to the
Trustee (or other financial institution appointed as custodian for the Contract
Documents) as promptly as possible. If such Title Document showing the Buyer as
owner and first lienholder and Trustee as second lienholder is not received by
the Trustee (or other custodian) within 30 days after the Purchase Date, then
the representation and warranty in Section 4.4 of the Indenture in respect of
such Contract shall be deemed to have been incorrect in a manner that materially
and adversely affects the Security holders.

         The Servicer shall deliver to the Trustee on a monthly basis a listing
of Contracts that as of the date prior to such delivery do not show the Buyer as
owner and first lienholder and the Trustee as second lienholder on the Title
Documents for such Contracts.

                                       6
<PAGE>   7

         Any fees charged for the transfer of ownership or liens on the Title
Documents for the Leased Vehicles into or out of the Buyer's or Trustee's name,
as appropriate, shall be paid by the Buyer as an Allowed Expense.

                  M. REPORTING BY THE SERVICER. On or prior to each Servicer
Report Date, the Servicer shall render to the Buyer the Monthly Report, in
respect of the immediately preceding Collection Period, which shall set forth
the following:

                           (i)      A confirmation that all proceeds (including
                                    all written instruments, Full Prepayments,
                                    Net Liquidation Proceeds and Net Insurance
                                    Proceeds) received by Servicer during such
                                    Collection Period and attributable to the
                                    Contracts (and any related Leased Vehicles)
                                    owned the Buyer have been deposited into the
                                    Master Collections Account;

                           (ii)     A confirmation that all funds that were
                                    deposited into the Master Collections
                                    Account during such Collection Period and
                                    that were attributable to the Contracts and
                                    related Leased Vehicles owned by the Buyer
                                    have been transferred to the Operating
                                    Account;

                           (iii)    Attached to the Monthly report should be
                                    detailed collection, receivables and
                                    delinquencies reports listing, by Contract
                                    Number, the daily proceeds received from
                                    each Contract during such Collection Period
                                    and deposited in the Master Collections
                                    Account (including any Net Liquidation
                                    Proceeds and Net Insurance Proceeds and any
                                    prepayments by Obligors) and the unpaid
                                    installment balance and the past due
                                    installments as of the end of the Collection
                                    Period for each Contract;

                           (iv)     Attached to the Monthly Report should be a
                                    detailed repossession, liquidation and loss
                                    report listing, by Contract Number,
                                    Contracts assigned for repossession,
                                    repossessions of Leased Vehicles, the sales
                                    of repossessed Leased Vehicles or Leased
                                    Vehicles returned upon the termination of
                                    their Contracts and resulting proceeds, any
                                    Net Insurance Proceeds and any other Net
                                    Liquidation Proceeds during the Collection
                                    Period; and

                           (v)      Any other information relating to the
                                    Contracts reasonably requested by the Buyer
                                    or the Trustee.

         On or before 45 days after the end of each fiscal quarter of the
Servicer, the Servicer shall deliver an Officers' Certificate to the Buyer and
the Trustee to the effect that a review of the activities of the Servicer during
the Servicer's preceding fiscal quarter has been made under the supervision of
the officers executing such Officers' Certificate with a view to determining

                                       7
<PAGE>   8

whether during such period the Servicer has performed and observed, in all
material respects, its obligations under the Indenture and the Servicing
Agreement, and either (A) stating that to the best of their knowledge no default
by the Servicer under the Indenture or the Servicing Agreement has occurred and
is continuing, or (B) if such a default has occurred and is continuing,
specifying such default and the nature and status thereof. Such certificate need
not comply with Section 11.4 of the Indenture.

                  N. ANNUAL ACCOUNTANTS' REPORTS. On or before 120 days after
the end of each fiscal year of the Servicer, the Servicer and the Buyer shall
deliver to the Trustee separate reports, prepared by a firm of independent
accountants selected by the Servicer and the Buyer, that (i) they have examined
the balance sheets of the Servicer and the Buyer is of the last day of said
fiscal year and the related statements of operations, retained earnings and
changes in financial position for such fiscal year and have issued an opinion
thereon, specifying the date thereof, (ii) they have also examined certain
documents and the records to the Contracts, (iii) their examination as described
under clauses (i) and (ii) above was made in accordance with generally accepted
auditing standards and accordingly included such tests of the accounting records
and such other auditing procedures as they considered necessary in the
circumstances, and (iv) their examination described under clauses (i) and (ii)
above disclosed no exceptions that, in their opinion, were material, relating to
such Contracts, or, if any such exceptions were disclosed thereby, setting forth
such exceptions that, in their opinion, were material.

                  O. CORPORATE EXISTENCE; STATUS OF SERVICER; MERGER. The
Servicer shall keep in full effect its existence, rights and franchises as a
corporation under the laws of the State of Texas, and will obtain and preserve
its qualification to do business as a foreign corporation in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability of the Contract Documents, the Indenture and the Servicing
Agreement.

         The Servicer shall not consolidate with or merge into any other
corporation or convey, transfer or lease substantially all of its assets as an
entirety to any person unless the corporation formed by such consolidation or
into which the Servicer has merged or the person that acquires by conveyance,
transfer or lease substantially all the assets of the Servicer as an entirety is
an entity organized and existing under the laws of the United States or any
state or the District of Columbia and executes and delivers to the Buyer and the
Trustee an agreement in form and substance reasonably satisfactory to the Buyer
and the Trustee, which contains an assumption by such successor entity of the
due and punctual performance and observance of each covenant and condition to be
performed or observed by the Servicer under the Indenture and the Servicing
Agreement.

                  P. THE SERVICER NOT TO RESIGN; ASSIGNMENT. The Servicer shall
not resign from the duties and obligations hereby imposed on it except upon
determination by its Board of Directors that by reason of change in applicable
legal requirements the continued performance by the Servicer of its duties under
the Indenture would cause it to be in violation of such legal requirements in a
manner that would result in a material adverse effect on the Servicer

                                       8
<PAGE>   9

or its financial condition, said determination to be evidenced by a resolution
of its Board of Directors to such effect. No such resignation shall become
effective unless and until a new servicer acceptable to the Buyer is willing to
service the Contracts and enters into a servicing agreement with the Buyer in
form and substance substantially similar to the Servicing Agreement. No such
resignation shall affect the obligation of the Servicer to repurchase any
Contract pursuant to the Servicing Agreement.

         The Servicer may not assign the Servicing Agreement or any of its
rights, powers, duties or obligations hereunder, provided that the Servicer may
assign the Indenture and in connection with a consolidation, merger, conveyance,
transfer or lease made in compliance with SECTION 5(O) and provided further that
the Servicer may contract with industry qualified third parties for the
performance of its duties under the Servicing Agreement, except that any such
contract shall not relieve the Servicer from liability for its obligations under
the Servicing Agreement.

                  Q. PURCHASE OF CERTAIN CONTRACTS. The representations and
warranties of the Servicer set forth in Section 4.4 of the Indenture with
respect to each Contract shall survive delivery of the Contract Documents to the
Trustee and shall continue so long as such Contract remains outstanding. Upon
discovery by the Buyer, the Servicer or the Trustee that any of such
representations or warranties was incorrect as of the time made or that any of
the Contract Documents relating to any such Contract has not been properly
executed by the Obligor or the Servicer or contains a material defect or has not
been received by the Trustee, the party making such discovery shall give prompt
notice to the other and to the Trustee (other than in cases where the Trustee
has given notice thereof). If any such defect, incorrectness or omission
materially and adversely affects the interest of the Security holders in and to
the related Contract, the Servicer shall, within 90 days after discovery thereof
or receipt of notice thereof, cure the defect or eliminate or otherwise cure the
circumstances or condition in respect of which representation or warranty was
incorrect as of the time made. If the Servicer is unable to do so, it shall
purchase such Contract from the Buyer through a deposit into the Master
Collections Account no later than the end of the Collection Period during which
such 90-day period expired of an amount equal to the purchase price paid by the
Buyer for such Contract less any lease payments from the Obligor relating to the
Contract after the Buyer's purchase of the Contract. Upon such deposit, the
Servicer shall be entitled to request a release of the defective Contract from
the lien of the Indenture pursuant to Section 4.4(a) of the Indenture. Upon any
such purchase, the Buyer and the Trustee shall execute and deliver such
instruments of transfer or assignment, in each case without recourse, as shall
be necessary to vest in the Servicer any Contract purchased hereunder.

         It is understood that, without limiting the meaning of the term
"materially and adversely affects," the interest of the Securityholders shall be
deemed materially and adversely affected if (i) the Buyer, the Trustee or of any
such Securityholders are put under any obligation to pay any other Person any of
such money as a result of any such defect or misrepresentation, or (ii) the
Trustee or the Holders of Securities representing not less than 25% of the
aggregate principal amount of the Outstanding Securities, acting reasonably,
determine, by notice to the Buyer, that

                                       9
<PAGE>   10

such defect or misrepresentation materially and adversely affects the interests
of the Holders of Securities in and to a Contract.

         6. MAINTENANCE OF INTERNAL CONTROL AND PROCEDURES. Servicer shall, at
all times during the term of the Servicing Agreement, follow internal control
procedures consistent with loan servicing industry standards and, at the request
of Buyer, will supply same in written form for review purposes.

         7. COMPUTER. Servicer shall, at all times during the term of the
Servicing Agreement, utilize in the operation of its business the industry
standard computer software and contract information maintenance system, such
system to be approved by Buyer.

         8. SERVICER EVENTS OF DEFAULT. The occurrence and continuation of any
one of the following events shall be a "Servicer Event of Default" under the
Servicing Agreement:

                  A. Failure on the part of the Servicer to remit collections on
the Contracts to the Master Collections Account when due and continuance of such
failure for four Business Days; or

                  B. An involuntary case is commenced or filed against the
Servicer under the federal bankruptcy laws, as now or hereafter in effect, or
any other present or future federal or state bankruptcy, insolvency or similar
law, or for the appointment of a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Servicer or of any
substantial part of its property, or for the winding up of the affairs of,
liquidation, dissolution, or reorganization of the Servicer and the continuance
of such case or filing unstayed for a period of thirty consecutive days; or

                  C. An order for relief shall be entered in a case under title
11 of the United States Code on which the Servicer is a debtor, or the Servicer
shall become insolvent or admit in writing it s inability to pay its debts as
they come due, or the commencement by the Servicer of a voluntary case under the
federal bankruptcy laws, as now or hereafter in effect, or any other present or
future federal or state bankruptcy, insolvency or similar law, or the consent by
the Servicer to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Servicer or of any substantial part of its property or the making by the
Servicer of an assignment for the benefit of creditors or the failure by the
Servicer generally to pay its debts as such debts become due or the taking of
corporate action by the Servicer in furtherance of any of the foregoing.

                  D. Failure by Servicer to service and collect amounts due from
Obligors under Contracts in accordance with the servicing criteria described in
EXHIBIT A attached hereto.

                                       10
<PAGE>   11

         9. REMEDIES.

                  A. If a Servicer Event of Default shall have occurred, Buyer
may, by notice given in writing to the Servicer, terminate all of the rights and
obligations of the Servicer under the Servicing Agreement. Notwithstanding any
termination of the rights and obligations of the Servicer, the Servicer shall
remain responsible for any acts or omissions to act by it as Servicer prior to
such termination.

                  B. Buyer is hereby authorized and empowered (upon the failure
of the Servicer to cooperate) to execute and deliver, on behalf of the Servicer
as attorney-in-fact or otherwise, all documents and other instruments upon the
failure of the Servicer to execute or deliver such documents or instruments, and
to do and accomplish all other acts or things necessary or appropriate to effect
the purposes of a transfer of servicing rights to a successor servicer.

                  C. The Servicer agrees to cooperate with Buyer and any
successor servicer in effecting the termination of the responsibilities and
rights of the Servicer to conduct servicing hereunder, including, without
limitation, the transfer to such successor servicer of all authority of the
Servicer to service the Contracts provided for under the Servicing Agreement.

                  D. In the event the rights and responsibilities of the
Servicer are terminated, as provided above, Buyer may take such steps as may be
appropriate or necessary to protect and preserve the Trust Estate, and to assure
the orderly transfer of authority and responsibility to the successor Servicer,
and to assure that title to all assets of the Trust Estate are vested in Buyer,
with security interests vested in Buyer and Trustee (including all steps deemed
necessary or advisable by the Trustee), and to do or accomplish all other acts
or things necessary or appropriate to effect such vesting and assumption,
including, without limitation, directing the Obligors to remit Lease payments
and all other payments in respect of the Contracts to an account or address
designated by the Buyer or such new servicer. This right of termination is
cumulative and not exclusive of all other rights and remedies from time to time
conferred upon or reserved to the Buyer or the Trustee that either of them may
have at law or in equity. The right or remedy may be exercised from time to time
and as often as deemed expedient. No delay or omission in insisting upon the
strict observance or performance of any provision of the Servicing Agreement, or
in exercising any right or remedy, shall be construed as a waiver or
relinquishment of such provision, nor shall it impair such right or remedy.

         10. COVENANTS OF THE BUYER. From and after the date hereof until such
time as this Servicing Agreement shall terminate, Buyer shall maintain its right
to do business in Texas as a corporation organized under the laws of the State
of Texas, and shall maintain all licenses and qualifications necessary for it to
conduct its business. It will provide to Servicer all assistance reasonably
requested by Servicer to enable Servicer to perform its obligations under this
Servicing Agreement.

         11. SUCCESSORS AND ASSIGNS. The Servicing Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. The Servicer may contract with industry-qualified
parties for the performance of any or all of its

                                       11
<PAGE>   12

obligations arising hereunder but no such contract shall relieve Servicer from
liability for its performance hereunder.

         12. BUYER EVENT OF DEFAULT; SERVICER'S REMEDIES. In the event that
Buyer should fail to pay any fees or compensation due under the Servicing
Agreement, within ten (10) days of the date they are due, or are submitted for
payment, whichever is less, or shall fail to perform any of its duties or to
observe or perform any other term, covenant, condition or agreement provided
within the Servicing Agreement, said failure shall constitute an event of
default by the Buyer. In the event of such default, Servicer shall have the
option of terminating the Servicing Agreement in addition to all remedies
available in equity or law.

         13. MODIFICATIONS AND WAIVERS. No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, not shall any waiver of any right, power or privilege hereunder operate
as a waiver of any other right, power of privilege hereunder, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
any other or further exercise thereof, or the exercise of any other right, power
or privilege hereunder. All rights and remedies herein provided are cumulative
and are not exclusive of any rights or remedies that the parties hereto may
otherwise have at law or in equity. No waiver shall be valid in the absence of
the written and signed consent of the party against which enforcement of such is
sought.

         14. NOTICE. Except as otherwise specifically provided herein, any
notice hereunder shall be in writing (including telegraphic or telecopy
communication) and, if mailed, shall be deemed to be given when sent by
registered or certified mail, postage prepaid, or if telegraphed when delivered
to the telegraph company, or if telecopied when transmitted, or otherwise when
delivered in person to the addressee and a receipt given for, in all such
instances addressed to the respective party as follows:

                      To Servicer:     Transition Leasing Management, Inc.
                                       8144 Walnut Hill Lane, Number 680
                                       Dallas, Texas 75231
                                       Attn: Ken Lowe, President

                      To Buyer:        Transaction Auto Finance IV, Inc.
                                       8144 Walnut Hill Lane, Number 680
                                       Dallas, Texas 75231
                                       Attn: Ken Lowe, President

         15. AMENDMENT. The Servicing Agreement may be amended, supplemented or
modified only with the written consent of the parties hereto.

         16. CHOICE OF LAW. THE SERVICING AGREEMENT, AND THE VALIDITY AND
ENFORCEMENT HEREOF, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
SUBSTANTIVE LAWS OF THE STATE OF TEXAS.

                                       12
<PAGE>   13

         17. SEVERABILITY. If any provision of the Servicing Agreement is held
to be illegal, invalid or unenforceable under present or future laws effective
during the term of the Servicing Agreement, the legality, validity and
enforceability of the remaining provisions of the Servicing Agreement, shall not
be affected thereby, and in lieu of each such illegal, invalid or unenforceable
provision there shall be added automatically as a part of the Servicing
Agreement a provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible and be legal, valid and enforceable.

         18. ENTIRE AGREEMENT. This instrument embodies the entire agreement
between the parties relating to the subject matter hereof and supersedes all
prior agreements and understandings, if any, relating to the subject matter
hereof.

         19. COUNTERPARTS. The Servicing Agreement may be executed in one or
more counterparts, each of which for all purposes is to be deemed an original.

         20. SURVIVAL. All covenants, agreements, undertakings, indemnities,
representations and warranties made herein shall survive both the execution and
the termination hereof and shall not be affected by any investigation made by
any party.

         21. FURTHER ASSURANCES. Servicer shall furnish to Buyer at the request
of the Buyer such additional information concerning the Contracts as Buyer may
from time to time reasonably request in order to establish compliance with the
terms and conditions of the Servicing Agreement, and shall execute, acknowledge
and deliver, or cause to be executed, acknowledged or delivered, such
supplements hereto and such further instruments as may reasonably be required or
appropriate and permitted by law to further express the intention, or to
facilitate the performance of the Servicing Agreement.

                                        "BUYER"

                                        Transition Auto Finance IV, Inc.

                                        By:
                                            ------------------------------------
                                                   Ken Lowe, President

                                        "SERVICER"

                                        Transition Leasing Management, Inc.

                                        By:
                                            ------------------------------------
                                                   Ken Lowe, President

                                       13
<PAGE>   14

                               SERVICING AGREEMENT

                                    EXHIBIT A

                               SERVICING CRITERIA

         At all times during the term of this Servicing Agreement as set forth
in Section 2 therein, Servicer shall perform its duties in material accordance
with the Servicing Agreement, and observe the following covenants and criteria
(referred to as the "servicing criteria"):

         I.       SERVICING ACTIVITY REPORT

                  A. Servicer shall prepare a Monthly Report Certificate (the
"Certificate") signed by an officer of Servicer who shall certify as to the
authenticity and accuracy therein, that all Contracts managed by Servicer were
collected and repossessed in accordance with the terms and conditions of the
Servicing Agreement, including the servicing criteria described herein, and that
no Servicing Event of Default as described in Section 8 of the Servicing
Agreement has occurred since the date of the last such Certificate.

                  B. The Certificate shall contain collection information on
each Contract since the date of the last such Certificate, including adequately
segregated information of all past due accounts, repossessions, charge-offs, and
extensions. Supporting documents shall be made available to Buyer on a demand
basis, and such records shall be properly and safely maintained.

                  C. The Certificate shall be delivered to Buyer on or before
the tenth day of the month following the month covered thereunder.

         II.      COLLECTION POLICY

                  A. All Obligors under related Contracts will be issued a
preprinted payment book, monthly statements or other remittance advice or
instructions that will specifically request that all payments be made to
Servicer's Master Collections Account lockbox.

                  B. Servicer shall contact any Obligor on a past due Contract
within ten days after the payment due date for the purpose of pursuing
collections and shall adequately update all credit and collection file records
with respect to such activities.

                  C. Any material extensions, modifications, or acceptances of
partial payments by Obligors, and any related necessary Contract amendments
and/or default waivers by Servicer, shall be approved by the chief credit
officer or president of Servicer or its assigns, and all necessary third party
charges and explanations relating thereto shall be documented in the collection
file records.

                                       14
<PAGE>   15

         III.     OBLIGOR DEFAULT

                  A. If, at any time, an Obligor is more than thirty days past
due on a payment owed by him under a Contract, Servicer shall engage an
independent third party contractor to repossess the Leased Vehicle.

                  B. Following repossession of a Leased Vehicle, (i) Servicer
will proceed to cause the Leased Vehicle to be sold at an automobile auction
and deliver the proceeds to Buyer, or (ii), if the Obligor has not previously
defaulted, Servicer may, in its discretion upon the exercise of reasonable
judgment as to the financial responsibility of Obligor and any other pertinent
factors, allow Obligor to regain possession of the Leased Vehicle upon payment
of late charges and repossession costs. In the situation in which Obligor is
allowed to regain possession of the Leased Vehicle, Obligor will be advised that
if default occurs a second time, the Leased Vehicle will be repossessed and
sold, and Obligor will not be given the opportunity to cure the default and
regain possession of the Leased Vehicle, unless otherwise required by applicable
law.

                                       15

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