Document:

DELTA FINANCIAL CORPORATION

                          WARRANT ACQUISITION AGREEMENT

         THIS WARRANT ACQUISITION AGREEMENT (the "Agreement") is made as of
August 13, 2007, by and between Delta Financial Corporation (the "Company"), a
corporation organized under the laws of the State of Delaware, with its
principal offices at 1000 Woodbury Road, Suite 200, Woodbury, New York 11797 and
the purchaser whose name and address is set forth on the signature page hereof
(the "Purchaser").

         IN CONSIDERATION of the mutual covenants contained in this Agreement,
the Company and the Purchaser agree as follows:

                  SECTION 1. ISSUANCE OF THE WARRANTS. Subject to the terms and
conditions of this Agreement, the Company has authorized the issuance of
warrants to purchase 10,000,000 shares of the Company's common stock, par value,
$.01 per share (the "Common Stock"), in the form attached hereto as Exhibit A
(the "Warrants"). The shares of Common Stock issuable upon exercise of the
Warrants are referred to herein as the "Warrant Shares."

                  SECTION 2. AGREEMENT TO ISSUE THE WARRANTS. At the Closing (as
defined in Section 3), in connection with the transactions described by the
Securities Repurchase Agreement, dated August 13, 2007, by and between
Renaissance REIT Investment Corp. and Delta Funding Corporation, as Sellers, the
Company, as Guarantor, and the Purchaser, as Buyer, and the documents delivered
in connection therewith (collectively, the "Financing Agreements"), the Company
will, subject to the terms of this Agreement, issue to the Purchaser, and the
Purchaser will acquire from the Company, upon the terms and conditions
hereinafter set forth, the Warrants.

                  SECTION 3. DELIVERY OF THE WARRANTS AT THE CLOSING. The
completion of the issuance of the Warrants (the "Closing") shall occur at the
offices of Morrison & Foerster LLP, 1290 Avenue of the Americas, New York, New
York 10104 on August 14, 2007, or on such later date or at such different
location as the Company and the Purchaser shall agree in writing, but in any
event not prior to the date that the conditions for Closing set forth below have
been satisfied or waived by the appropriate party (the "Closing Date"). The
Purchaser and the Company shall agree on the specific time of the Closing.

         At the Closing, the Company shall deliver to the Purchaser one or more
warrant certificates registered in the name of the Purchaser, or in such nominee
name(s) as designated by the Purchaser in writing, representing the Warrants and
bearing an appropriate legend, as described in Section 5.6 below, referring to
the fact that the Warrants were delivered in reliance upon the exemption from
registration under the Securities Act of 1933, as amended (the "Securities
Act"), provided by Section 4(2) thereof. The name(s) in which the warrant
certificates are to be registered are set forth in the Certificate Questionnaire
attached hereto as part of APPENDIX I.

         The Company's obligation to complete the issuance of the Warrants and
deliver such certificate(s) to the Purchaser at the Closing shall be subject to
the following conditions, any one

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or more of which may be waived by the Company: (a) the completion of the closing
of the transactions contemplated by the Financing Agreements and (b) the
accuracy in all material respects of the representations and warranties made by
the Purchaser (as if such representations and warranties were made on the
Closing Date) and the fulfillment in all material respects of those undertakings
of the Purchaser to be fulfilled prior to the Closing. The Purchaser's
obligation to accept delivery of such certificate(s) shall be subject to the
following conditions, any one or more of which may be waived by the Purchaser:
(a) each of the representations and warranties of the Company made herein shall
be accurate in all material respects as of the Closing Date, except to the
extent that such representations and warranties contain a materiality qualifier,
in which case they shall be accurate in all respects; (b) the delivery to the
Purchaser by counsel to the Company of a favorable legal opinion in
substantially the form attached hereto as EXHIBIT B hereto; (c) the completion
of the transactions contemplated by the Financing Agreements; (d) the execution
and delivery of the Voting and Support Agreement dated August 13, 2007 by and
among the Company, the Purchaser and the officers and directors of the Company
holding shares of the Company's Common Stock, and certain trusts under the
control of such officers (as identified in the Company's proxy statement for its
2007 annual stockholder meeting, under the caption "Security Ownership of
Certain Beneficial Owners and Management"), the Management Rights Letter dated
August 13, 2007, and the Investor Rights Agreement dated August 13, 2007 by and
between the Company and the purchasers signatory thereto (the "Investor Rights
Agreement"); and (e) the fulfillment in all material respects of those
undertakings of the Company to be fulfilled prior to Closing.

                  SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
COMPANY. The Company hereby represents and warrants to, and covenants with, the
Purchaser as follows:

         4.1 WARRANT ACQUISITION AGREEMENT AND WARRANTS. The Company has full
legal right, corporate power and authority to enter into this Agreement and to
perform the transactions contemplated hereby. This Agreement and each Warrant
has been duly authorized, executed, and delivered by, and is a valid and binding
agreement of, the Company, enforceable in accordance with its terms, except as
(i) rights to indemnification hereunder may be limited by applicable law, and
(ii) the enforcement hereof and thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable
principles.

         4.2 AUTHORIZATION OF THE WARRANT SHARES. The Warrant Shares have been
duly authorized and, when issued, delivered and paid for in the manner set forth
in the Warrant will be validly issued, fully paid and nonassessable and free and
clear of all pledges, liens, restrictions and encumbrances (other than
restrictions on transfer under state and/or federal securities laws). The
Company has reserved for issuance all of the Warrant Shares. No preemptive
rights or other similar rights to subscribe for or purchase any shares of Common
Stock of the Company exist with respect to the issuance of the Warrants by the
Company pursuant to this Agreement. No further approval or authority of the
stockholders or the Board of Directors of the Company will be required for the
issuance of the Warrants and/or the Warrant Shares by the Company as
contemplated herein, except as required under the rules of the Nasdaq Global
Market.

         4.3 OFFERING MATERIALS. Neither the Company nor any person acting on
its behalf has in the past or will hereafter take any action independent of the
Purchaser to sell, offer for sale or

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solicit offers to buy any securities of the Company that would result in the
initial issuance of the Warrants, as contemplated by this Agreement, not being
exempt from the registration requirements of Section 5 of the Securities Act.

         4.4 NO OTHER REGISTRATION RIGHTS. No holder of any security of the
Company outstanding prior to the date hereof has any right (which has not been
waived or has not expired by reason of lapse of time following notification of
the Company's intent to file the registration statement (the "Registration
Statement") to be filed by it pursuant to the Investor Rights Agreement) to
require the Company to register the sale of any security owned by such
stockholder under the Securities Act in or in preference to the Registration
Statement.

         4.5 NO MATERIAL ADVERSE CHANGE. Except as otherwise set forth in
Schedule 4.5 of the Disclosure Schedule provided on the date hereof to the
Purchaser (the "Company Disclosure Schedule"), since March 31, 2007: (i) the
business of the Company and its subsidiaries has been operated in the ordinary
course of business consistent with past practice and there has been no Material
Adverse Change (as defined below), or any development that could reasonably be
expected to result in a Material Adverse Change; (ii) the Company and its
subsidiaries, considered as one entity, have not incurred any material liability
or obligation, indirect, direct, or contingent, nor entered into any material
transaction or agreement other than in the ordinary course of its business;
(iii) there has been no dividend or distribution of any kind declared, paid or
made by the Company or, except for dividends paid to the Company or its other
subsidiaries, any of its subsidiaries on any class of capital stock, or
repurchase or redemption by the Company or any of its subsidiaries of any class
of capital stock; and (iv) the Company and its subsidiaries have not sustained
any material loss or interference with their businesses or properties from fire,
flood, windstorm, accident or other calamity not covered by insurance. For
purposes of this Agreement, the term "Material Adverse Change" means any
material adverse change in the condition, financial or otherwise, or in the
earnings, business or results of operations, whether or not arising from
transactions in the ordinary course of business, of the Company and its
subsidiaries, considered as one entity or on the transactions contemplated
hereby or by the agreements and instruments to be entered into in connection
herewith, or on the authority or ability of the Company to perform its
obligations under this Agreement.

         4.6 ACCOUNTANTS. The firm BDO Seidman, LLP, which has expressed its
opinion with respect to the consolidated financial statements contained in the
Company's Annual Report on Form 10-K for the year ended December 31, 2006, which
will be incorporated by reference in the Registration Statement and the
Prospectus in the form first filed with the Commission pursuant to Rule 424(b)
of the Rules and Regulations of the Securities Act, or filed as part of the
Registration Statement at the time of effectiveness if no Rule 424(b) filing is
required (the "Prospectus"), is a registered independent public accountant as
required by the Securities Act and the rules and regulations promulgated
thereunder (the "Rules and Regulations") and by the rules of the Public
Accounting Oversight Board.

         4.7 PREPARATION OF THE FINANCIAL STATEMENTS. The consolidated financial
statements of the Company and the related notes contained in its filings under
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), present
fairly the consolidated financial position of the Company and its subsidiaries
as of and at the dates indicated and the results of their operations, cash flows
and changes in stockholders' equity for the periods therein specified. Such

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consolidated financial statements (including the related notes) have been
prepared in conformity with generally accepted accounting principles ("GAAP")
applied on a consistent basis throughout the periods involved, except as may be
expressly stated in the related notes thereto. No other financial statements or
supporting schedules are required to be included in the Company's Exchange Act
Reports (as defined below).

         4.8 INCORPORATION AND GOOD STANDING OF THE COMPANY AND ITS
SUBSIDIARIES. Each of the Company and its subsidiaries has been duly
incorporated or formed and is validly existing as a corporation, limited
liability company, or trust, as applicable, is in good standing under the laws
of the jurisdiction of its incorporation or formation and has corporate power
and authority to own, lease and operate its properties and to conduct its
business as described in its filings with the Securities and Exchange Commission
(the "Commission") and, in the case of the Company, to enter into and perform
its obligations under this Agreement. Each of the Company and its subsidiaries
is duly qualified as a foreign corporation, limited liability company or trust,
as applicable, to transact business and is in good standing in each jurisdiction
in which such qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except for such jurisdictions
where the failure to so qualify or to be in good standing would not,
individually or in the aggregate, result in a Material Adverse Change. All of
the issued and outstanding capital stock or limited liability company interests
of each subsidiary that has been organized as a corporation or a limited
liability company has been duly authorized and validly issued, is fully paid and
non-assessable and is owned by the Company, directly or through subsidiaries,
free and clear of any security interest, mortgage, pledge, lien, encumbrance or
claim.

         4.9 SUBSIDIARIES OF THE COMPANY. The Company does not own or control,
directly or indirectly, any corporation, limited liability company, trust,
association or other entity other (x) than the subsidiaries listed in EXHIBIT
21.1 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2006 and (y) the trusts created in connection with the
securitizations described in such Annual Report.

         4.10 NO PROHIBITION ON SUBSIDIARIES FROM PAYING DIVIDENDS OR MAKING
OTHER DISTRIBUTIONS. Except as otherwise disclosed in Schedule 4.10, no
subsidiary of the Company is currently prohibited, directly or indirectly, from
paying any dividends to the Company, from making any other distribution on such
subsidiary's capital stock, from repaying to the Company any loans or advances
to such subsidiary from the Company or from transferring any of such
subsidiary's property or assets to the Company or any other subsidiary of the
Company.

         4.11 CAPITALIZATION AND OTHER CAPITAL STOCK MATTERS. The authorized,
issued, and outstanding capital stock of the Company is as set forth in Schedule
4.11 of the Company Disclosure Schedule. The Common Stock conforms in all
material respects to the description thereof contained in the Company's most
recent Form 8-A filed under the Exchange Act and in the Exchange Act Reports.
All of the issued and outstanding shares of Common Stock have been duly
authorized and validly issued, are fully paid and non-assessable and have been
issued in compliance with federal and state securities laws. None of the
outstanding shares of Common Stock were issued in violation of any preemptive
rights, rights of first refusal or other similar rights to subscribe for or
purchase securities of the Company. Except as set forth in Schedule 4.11, there
are no authorized or outstanding options, warrants, preemptive rights, rights

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of first refusal or other rights to purchase, or equity or debt securities
convertible into, exchangeable or exercisable for, any capital stock of the
Company or any of its subsidiaries. The description of the Company's stock
option, stock bonus and other stock plans or arrangements, and the options or
other rights granted thereunder, set forth in the Exchange Act Reports,
accurately and fairly presents the information required to be shown with respect
to such plans, arrangements, options and rights.

         4.12 [INTENTIONALLY OMITTED.]

         4.13 AGREEMENT NOT TO OFFER OR SELL ADDITIONAL SECURITIES. During the
period of ninety (90) days following the date of this Agreement (the "Lock-Up
Period"), the Company will not, without the prior written consent of the
Purchaser (which consent may be withheld in its sole discretion), sell, offer,
contract, or grant, directly or indirectly, any option to sell, pledge,
transfer, or establish an open "put equivalent position" within the meaning of
Rule 16a-1(h) under the Exchange Act, otherwise dispose of, transfer, or enter
into any transaction which is designed to, or could be expected to, result in
the disposition (whether by actual disposition or effective economic disposition
due to cash settlement or otherwise by the Company or any affiliate of the
Company or any person in privity with the Company or any affiliate of the
Company), or otherwise dispose of any shares of Common Stock or securities
convertible into, exchangeable, or exercisable for Common Stock ("Securities")
or any securities that relates to or derives any significant part of its value
from the Common Stock; PROVIDED, HOWEVER, that the Company may issue (i) shares
of restricted stock or options to purchase its Common Stock pursuant to any
stock option plan, stock bonus, or other stock plan or arrangement approved by
the Board of Directors of the Company and that has been disclosed to the
Purchaser as set forth in the Company Disclosure Schedule, (ii) Common Stock
upon the exercise of such options described in clause (i), but only if such
shares, options, or shares issued upon exercise of such options, cannot be sold,
offered, disposed of or otherwise transferred during the Lock-up Period without
the prior written consent of the Purchaser (which consent may be withheld in its
sole discretion), or (iii) Common Stock issuable upon exercise of the Warrants.

         4.14 STOCK EXCHANGE LISTING. The Common Stock is registered pursuant to
Section 12(b) of the Exchange Act, and is listed on the Nasdaq Global Market
("Nasdaq"), and the Company has taken no action designed to, or likely to have
the effect of, terminating the registration of the Common Stock under the
Exchange Act or delisting the Common Stock from the Nasdaq nor has the Company
received any notification that the Commission or the Nasdaq is contemplating
terminating such registration or listing.

         4.15 NON-CONTRAVENTION OF EXISTING INSTRUMENTS; NO FURTHER
AUTHORIZATIONS OR APPROVALS REQUIRED. Neither the Company nor any of its
subsidiaries is in violation or default of any provision of its charter, by-laws
or other organizational documents or is in breach of or default (or, with the
giving of notice or lapse of time, would be in default) ("Default") under any
indenture, mortgage, loan or credit agreement, note, contract, franchise, lease
or other instrument to which the Company or any of its subsidiaries is a party
or by which it or any of them may be bound, or to which any of the property or
assets of the Company or any of its subsidiaries is subject, including, without
limitation, any agreements pertaining to, relating to or arising in connection
with, any of the securitization transactions of the Company or any of its
subsidiaries (each, an "Existing Instrument"), except for such Defaults as would
not, individually or in the

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aggregate, result in a Material Adverse Change. The Company and its subsidiaries
are in compliance with all statutes, laws, rules, regulations, judgments, orders
and decrees of all courts, regulatory bodies, administrative agencies,
governmental bodies, arbitrators or other authorities having jurisdiction over
the Company or such subsidiaries or any of their respective properties, as
applicable, including, without limitation, the provisions of the Sarbanes-Oxley
Act of 2002, as amended ("Sarbanes-Oxley Act"), and the rules and regulations of
the National Association of Securities Dealers, Inc. ("NASD") and Nasdaq,
including the corporate governance requirements thereof, except where such
non-compliance would not, individually or in the aggregate, result in a Material
Adverse Change.

         4.16 NO CONFLICTS. The Company's execution, delivery, and performance
of this Agreement and consummation of the transactions contemplated hereby (i)
will not result in any violation of the provisions of the charter or by-laws of
the Company or any subsidiary, (ii) will not conflict with or constitute a
breach of, or Default under, or result in the creation or imposition of any
lien, charge, or encumbrance upon any property or assets of the Company or any
of its subsidiaries pursuant to, or require the consent of any other party to,
any Existing Instrument, except for such conflicts, breaches, Defaults, liens,
charges or encumbrances as would not, individually or in the aggregate, result
in a Material Adverse Change, and (iii) will not result in any violation of any
statute, law, rule, regulation, judgment, order or decree of any court,
regulatory body, administrative agency, governmental body, arbitrator or other
authority having jurisdiction over the Company or such subsidiary or any of its
properties, as applicable. No consent, approval, authorization or other order
of, or registration or filing with, any court or other governmental or
regulatory authority or agency, is required for the Company's execution,
delivery and performance of this Agreement and consummation of the transactions
contemplated hereby, except such as may be required under the state securities
or Blue Sky laws or the by-laws and rules of the NASD.

         4.17 NO MATERIAL ACTIONS OR PROCEEDINGS. Except as disclosed in or
contemplated by the Exchange Act Reports, there is no legal or governmental
action, suit or proceeding pending or, to the knowledge of the Company, there
are no inquiries or investigations, nor are there any legal or governmental
actions, suits or proceedings threatened (i) against or affecting the Company or
any of its subsidiaries, (ii) which has as the subject thereof any officer or
director of, or property owned or leased by, the Company or any of its
subsidiaries or (iii) relating to environmental or discrimination matters, which
in the case of clauses (i), (ii) or (iii) would reasonably be expected to result
in a Material Adverse Change or adversely affect the consummation of the
transactions contemplated hereby. Neither the Company nor any of its
subsidiaries is a party to or subject to the provisions of any injunction,
judgment, decree or order of any court, regulatory body, administrative agency
or other governmental body that is reasonably expected to result in a Material
Adverse Change, including, without limitation, any state licensure or banking
commission.

         4.18 LABOR MATTERS. No material labor dispute with the employees of the
Company or any of its subsidiaries exists or, to the knowledge of the Company,
is threatened or imminent. The Company is not aware of any existing or imminent
labor disturbance by the employees of any of its third-party contractors, that
might be expected to result in a Material Adverse Change.

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         4.19 INTELLECTUAL PROPERTY RIGHTS. The Company and its subsidiaries own
or possess sufficient trademarks, trade names, patent rights, patents, know-how,
collaborative research agreements, inventions, servicemarks, copyrights,
licenses, approvals, trade secrets and other similar rights (collectively,
"Intellectual Property Rights") necessary to conduct their businesses as now
conducted, as proposed to be conducted, as described in or contemplated by the
Exchange Act Reports, and any respective amendments or supplements thereto. The
expiration of any of such Intellectual Property Rights would not be reasonably
expected to result in a Material Adverse Change. Neither the Company nor any of
its subsidiaries has received any notice of, and has no knowledge of, any
infringement of or conflict with asserted rights of the Company by others with
respect to any Intellectual Property Rights, other than with respect to any
infringement that would not reasonably be expected to result in a Material
Adverse Change. There is no claim being made against the Company or any of its
subsidiaries regarding any kind of Intellectual Property Right. The Company and
its subsidiaries do not, in the conduct of their business as now or proposed to
be conducted as described in the Exchange Act Reports, infringe or conflict with
any right or patent of any third party, or any discovery, invention, product, or
process which is the subject of a patent application filed by any third party,
known to the Company or any of its subsidiaries, which such infringement or
conflict is reasonably likely to result in a Material Adverse Change.

         4.20 ALL NECESSARY PERMITS, ETC. The Company and each subsidiary
possess such valid and current certificates, authorizations, licenses or permits
issued by the appropriate state, federal, or foreign regulatory agencies or
bodies necessary to conduct their respective businesses, including, without
limitation, all certificates, authorizations, licenses or permits required for
the making of loans and lending operations, and (i) any such certificate,
authorization, license or permit is not subject to any qualifications or
limitations which would prohibit the Company or any of its subsidiaries from
conducting their respective businesses, (ii) all applicable fees have been paid
for any such certificate, authorization, license or permit, except for such fees
which if not paid would not in any way prevent or prohibit the Company or any of
its subsidiaries from conducting their respective businesses in accordance with
all applicable laws, (iii) no fines or penalties are outstanding for any failure
to timely obtain, or any non-compliance with any such certificate,
authorization, license or permit, except for such fines or penalties that would
not reasonably be likely to result in a Material Adverse Change, and (iv)
neither the Company nor any subsidiary has received any notice of proceedings
relating to the revocation or modification of, or non-compliance with, any such
certificate, authorization, license or permit, which revocation, modification or
non-compliance, individually or in the aggregate, would result in a Material
Adverse Change.

         4.21 TITLE TO PROPERTIES. The Company and each of its subsidiaries has
good and marketable title to all the properties and assets reflected as owned in
the financial statements included in the Exchange Act Reports, in each case free
and clear of any security interests, mortgages, liens, encumbrances, equities,
claims and other defects of any kind, except as described in the Exchange Act
Reports. The real property, improvements, equipment and personal property held
under lease by the Company or any subsidiary are held under valid and
enforceable leases, with such exceptions as are not material and do not
materially interfere with the use made or proposed to be made of such real
property, improvements, equipment or personal property by the Company or such
subsidiary.

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         4.22 TAX LAW COMPLIANCE. The Company and its subsidiaries have filed
all necessary federal, state and foreign income and franchise tax returns or
have duly requested extensions thereof and have paid all taxes required to be
paid by any of them and, if due and payable, any related or similar assessment,
fine, or penalty levied against any of them, except for any such tax,
assessment, fine or penalty that is being contested in good faith and by
appropriate proceedings and for which adequate reserves have been provided. The
Company and its subsidiaries have made adequate charges, accruals and reserves
in the applicable financial statements in respect of all federal, state and
foreign income and franchise taxes for all periods as to which the tax liability
of the Company and its subsidiaries have not been finally determined. The
Company has no knowledge of any tax deficiency that has been or might be
asserted or threatened against the Company.

         4.23 TRANSFER TAXES. On the Closing Date, all stock transfer taxes or
other similar fees or charges (other than income taxes) under federal law or the
laws of any state, or any political subdivisions thereof, that are required to
be paid in connection with the sale and transfer of the Warrants to be sold to
the Purchaser hereunder will have been, fully paid or provided for by the
Company and all laws imposing such taxes will have been fully complied with.

         4.24 COMPANY NOT AN "INVESTMENT COMPANY". The Company is not, and after
giving effect to the transactions contemplated hereby will not be, an
"investment company," or an entity "controlled" by an "investment company,"
within the meaning of the Investment Company Act of 1940, as amended, and the
rules and regulations promulgated thereunder.

         4.25 INSURANCE. Each of the Company and its subsidiaries are insured by
recognized, financially sound and reputable institutions with policies in such
amounts and with such deductibles and covering such risks as are generally
deemed adequate and customary for their businesses and otherwise reasonably
prudent including, but not limited to, policies covering real and personal
property owned or leased by the Company and its subsidiaries against theft,
damage, destruction, acts of vandalism, earthquakes, general liability and
Directors' and Officers' liability, all of which insurance is in full force and
effect. The Company and each of its subsidiaries expect they will be able, and
will use their best efforts, (i) to renew its existing insurance coverage as and
when such policies expire, or (ii) to obtain comparable coverage from similar
institutions as may be necessary or appropriate to conduct its business as now
conducted and at a cost that would not result in a Material Adverse Change.
Neither of the Company nor any subsidiary has been rejected from obtaining any
type of insurance coverage which it has sought or for which it has applied.

         4.26 NO PRICE STABILIZATION OR MANIPULATION. The Company has not taken
and will not take, directly or indirectly, any action which was designed to, or
that might be expected to cause or result in, stabilization or manipulation of
the price of the Common Stock to facilitate the sale or resale of the Warrants
or the Warrant Shares.

         4.27 USE OF PURCHASER NAME. Except as may be required by applicable law
or regulation, the Company shall not use the Purchaser's name or the name of any
of its affiliates in any advertisement, announcement, press release or other
similar public communication unless it has received the prior written consent of
the Purchaser for the specific use contemplated.

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         4.28 RELATED PARTY TRANSACTIONS. There are no business relationships or
related party transactions involving the Company or any subsidiary or any other
person required to be described in the Exchange Act Reports which have not been
described as required in the Company's most recent proxy statement, under the
caption "Related-Person Transactions."

         4.29 EXCHANGE ACT AND SARBANES-OXLEY ACT COMPLIANCE. Since December 31,
2006, the Company has filed all Exchange Act Reports required to be filed by it
with the Commission pursuant to the reporting requirements of the Exchange Act.
The Exchange Act Reports, at the time they were or hereafter are filed with the
Commission, complied and will comply in all material respects with the
requirements of the Exchange Act and the Sarbanes-Oxley Act and did not contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

         4.30 CONTRACTS. Except as disclosed in the Company's Exchange Act
Reports, the Company and its subsidiaries have no material contracts. Any
contracts described in the Company's Exchange Act Reports, except as described
in Section 4.30 of the Company Disclosure Schedule, (i) are in full force and
effect and enforceable against the Company and/or its subsidiaries, as
applicable, in accordance with its terms, (ii) to the knowledge of the Company,
each such contract is a legal, valid and binding obligation of the counterparty
thereto, in full force and effect and enforceable against such counterparty in
accordance with its terms, (iii) neither the Company nor any of its subsidiaries
and, to the knowledge of the Company, no counterparty, is or is alleged to be in
breach or violation of, or default under, any such contract, (iv) neither the
Company nor any of its subsidiaries has received any claim of default under any
such contract, (v) to the knowledge of the Company, no event has occurred which
would reasonably be expected to result in a breach or violation of, or a default
under, any such contract (in each case, with or without notice or lapse of time
or both) and (vi) the Company has not received any notice from any other party
to any such contract, and otherwise has no knowledge that such other party
intends to terminate, or not renew any such contract.

         4.31 COMPANY'S ACCOUNTING SYSTEM. The Company and each of its
subsidiaries maintain a system of accounting controls sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with
management's general or specific authorization, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain accountability for assets, (iii) access to assets is
permitted only in accordance with management's general or specific authorization
and (iv) the recorded accountability for assets is compared with existing assets
at reasonable intervals and appropriate action is taken with respect to any
differences.

         4.32 NO UNLAWFUL CONTRIBUTIONS OR OTHER PAYMENTS. Neither the Company
nor any of its subsidiaries nor, to the knowledge of the Company, any employee
or agent of the Company or any subsidiary of the Company acting on behalf of the
Company or any of its subsidiaries, has made any contribution or other payment
to any official of, or candidate for, any federal, state or foreign office in
violation of any law or of the character required to be disclosed in the
Company's Exchange Act Reports.

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         4.33 COMPLIANCE WITH ENVIRONMENTAL LAWS. Except as would not,
individually or in the aggregate, result in a Material Adverse Change, (i) the
Company and its subsidiaries are in compliance with all federal, state, local or
foreign law or regulation relating to pollution or protection of human health or
the environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata) or wildlife, including, without
limitation, laws and regulations relating to emissions, discharges, releases or
threatened releases of chemicals, pollutants, contaminants, wastes, toxic
substances, hazardous substances, petroleum and petroleum products
(collectively, the "Materials of Environmental Concern"), or otherwise relating
to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Materials of Environment Concern (collectively, the
"Environmental Laws"), which includes, but is not limited to, compliance with
any permits or other governmental authorizations required for the operation of
the business of the Company or its subsidiaries under applicable Environmental
Laws, or compliance with the terms and conditions thereof, and neither the
Company nor any of its subsidiaries has received any written communication,
whether from a governmental authority, citizens group, employee or otherwise,
that alleges that the Company or any of its subsidiaries is in violation of any
Environmental Law; (ii) there is no claim, action or cause of action filed with
a court or governmental authority, no investigation with respect to which the
Company has received written notice, and no written notice by any person or
entity alleging potential liability for investigatory costs, cleanup costs,
governmental responses costs, natural resources damages, property damages,
personal injuries, attorneys' fees or penalties arising out of, based on or
resulting from the presence, or release into the environment, of any Material of
Environmental Concern at any location owned, leased or operated by the Company
or any of its subsidiaries, now or in the past (collectively, the "Environmental
Claims"), pending or threatened against the Company or any of its subsidiaries
or any person or entity whose liability for any Environmental Claim the Company
or any of its subsidiaries has retained or assumed either contractually or by
operation of law; and (iii) there are no past or present actions, activities,
circumstances, conditions, events or incidents, including, without limitation,
the release, emission, discharge, presence or disposal of any Material of
Environmental Concern, that would reasonably be expected to result in a
violation of any Environmental Law or form the basis of a potential
Environmental Claim against the Company or any of its subsidiaries or against
any person or entity whose liability for any Environmental Claim the Company or
any of its subsidiaries has retained or assumed either contractually or by
operation of law. The Company is not currently aware that it will be required to
make future material capital expenditures to comply with Environmental Laws.

         4.34 ERISA COMPLIANCE. The Company and its subsidiaries and any
"employee benefit plan" (as defined under the Employee Retirement Income
Security Act of 1974, as amended, and the regulations and published
interpretations thereunder (collectively, "ERISA")) established or maintained by
the Company, its subsidiaries, or their "ERISA Affiliates" (as hereinafter
defined) are in compliance in all material respects with ERISA. "ERISA
Affiliate" means, with respect to the Company or a subsidiary, any member of any
group of organizations described in Sections 414(b), (c), (m) or (o) of the
Internal Revenue Code of 1986, as amended, and the regulations and published
interpretations thereunder (collectively, the "Code") of which the Company or
such subsidiary is a member. No "reportable event" (as defined under ERISA) has
occurred or is expected to occur with respect to any "employee benefit plan"
established or maintained by the Company, its subsidiaries or any of their ERISA
Affiliates. No "employee benefit plan" established or maintained by the Company,
its subsidiaries or any of their ERISA

                                       10
<PAGE>

Affiliates, if such "employee benefit plan" were terminated, would have any
"amount of unfunded benefit liabilities" (as defined under ERISA). None of the
Company, its subsidiaries or any of their ERISA Affiliates has incurred or
expects to incur any material liability under (i) Title IV of ERISA with respect
to termination of, or withdrawal from, any "employee benefit plan" or (ii)
Sections 412, 4971, 4975 or 4980B of the Code. Each "employee benefit plan"
established or maintained by the Company, its subsidiaries or any of their ERISA
Affiliates that is intended to be qualified under Section 401(a) of the Code has
been determined by the Internal Revenue Service to be so qualified and nothing
has occurred, whether by action or failure to act, which would reasonably be
expected to cause the loss of such qualification.

         4.35 REPORTING COMPANY; FORM S-3. The Company is not an "ineligible
issuer" (as defined in Rule 405 promulgated under the Securities Act) and
expects to be eligible to register the Warrant Shares for resale by the
Purchaser on a registration statement on Form S-3 under the Securities Act.
There exist no facts or circumstances (including, without limitation, any
required approvals or waivers or any circumstances that may delay or prevent the
obtaining of accountant's consents) that reasonably could be expected to
prohibit or delay the preparation and filing of a registration statement on Form
S-3 that will be available for the resale of such securities by the Purchaser.

         4.36 COMMODITY EXCHANGE ACT. The Company will not, and will not permit
any of its subsidiaries to, invest in futures contracts, options on futures
contracts or options on commodities unless such entities are exempt from the
registration requirements of the Commodity Exchange Act, as amended, and the
rules and regulations promulgated thereunder (the "Commodity Exchange Act") or
otherwise comply with the Commodity Exchange Act.

         4.37 TAXABLE MORTGAGE POOL. To the knowledge of the Company, neither
the Company, any of its subsidiaries nor any of their assets will be treated as
a taxable mortgage pool.

         4.38 INVESTMENT AND RISK-ADJUSTED CAPITAL GUIDELINES. The Company is,
and at all times has been, in compliance with its investment and risk-adjusted
capital guidelines to the extent applicable.

         4.39 OFF-BALANCE SHEET ARRANGEMENTS. There is no transaction,
arrangement or other relationship between the Company and/or any of its
subsidiaries and an unconsolidated or other off-balance sheet entity that is
required to be disclosed by the Company in its Exchange Act Reports and is not
so disclosed or that would otherwise be reasonably likely to result in a
Material Adverse Change. There are no such transactions, arrangements or other
relationships with the Company or any of its subsidiaries that may create
contingencies or liabilities that are not otherwise disclosed by the Company in
its Exchange Act Reports.

         4.40 OFFERING. Subject to the accuracy of the Purchaser's
representations in Section 5 of this Agreement, the sale of the Warrants in
conformity with the terms of this Agreement constitute transactions exempt from
the registration requirements of Section 5 of the Securities Act and from the
qualification or registration requirements of all applicable state securities
laws.

                                       11
<PAGE>

         4.41 NO INTEGRATION. Neither the Company, nor any of its affiliates,
nor, to the Company's knowledge, any person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security that would cause this offering of the Warrants to
be integrated with prior offerings by the Company for purposes of the Securities
Act or any applicable stockholder approval provisions nor will the Company or
any of its subsidiaries take any action or steps that would cause the offering
of the Warrants to be integrated with other offerings.

         4.42 COMMITTEES. The members of the Audit Committee, Compensation
Committee and Governance and Nominating Committee of the Board of Directors of
the Company are "independent directors" within the meaning of the listing
standards and rules of the Nasdaq, and with respect to the Audit Committee, the
Commission, (ii) all of the members of the Audit Committee are financially
literate within the meaning of the listing standards and rules of the Nasdaq and
(iii) at least one member of the Audit Committee is an "audit committee
financial expert," within the meaning of the Commission's rules and regulations.

         4.43 DISCLOSURE CONTROLS AND PROCEDURES. The principal executive
officer and principal financial officer are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the Company and have (i) designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to be
designed under their supervision, to ensure that material information relating
to the Company, including its consolidated subsidiaries, is made known to them
by others within those entities, particularly during the period in which the
Annual Report on Form 10-K for the year ended December 31, 2006 was being
prepared, (ii) evaluated the effectiveness of the Company's disclosure controls
and procedures and presented in the Annual Report on Form 10-K for the year
ended December 31, 2006 their conclusions about the effectiveness of the
disclosure controls and procedures as of the end of the applicable period based
on such evaluation and (iii) disclosed in the Annual Report on Form 10-K for the
year ended December 31, 2006 whether any change in the Company's internal
control over financial reporting that occurred during the applicable period that
has materially affected, or is reasonably likely to materially affect, the
Company's internal control over financial reporting.

         4.44 ADDITIONAL INFORMATION. The information contained in the following
documents (the materials identified in clauses (a), (b), (c) and (d) below are
referred to herein as the "Exchange Act Reports"), was or will be true and
correct in all material respects as of their respective dates:

                  (a) the Company's Annual Report on Form 10-K for the year
ended December 31, 2006;

                  (b) the Company's Quarterly Report on Form 10-Q for the three
months ended March 31, 2007;

                  (c) the Company's Definitive Proxy Statement for the Annual
Meeting of Stockholders held on May 17, 2007;

                                       12
<PAGE>

                  (d) all other documents, if any, filed by the Company with the
Commission since December 31, 2006 pursuant to the reporting requirements of the
Exchange Act; and

                  (e) the information provided to the Purchaser in connection
with its due diligence procedures.

         4.45 FINDER'S FEES. The Company has not incurred any liability for any
finder's fees or similar payments in connection with the transactions
contemplated by this Agreement.

         4.46 CERTIFICATE. At the Closing, the Company will deliver to Purchaser
a certificate executed by the chief executive officer and the chief financial or
accounting officer of the Company (solely in their capacities as such), dated as
of the Closing Date, in substantially the form attached hereto as EXHIBIT C
hereto, to the effect that (i) the representations, warranties and covenants of
the Company set forth in this Section 4 are true, correct and complete in all
material respects as of the date of this Agreement and as of the Closing Date,
except to the extent that such representations and warranties contain a
materiality qualifier, in which case they shall be true, correct and complete in
all respects, and (ii) the Company has complied in all material respects with
all the agreements and satisfied in all material respects all the conditions
herein on its part to be performed or satisfied on or prior to such Closing
Date.

         4.47 LEGAL OPINION. As a condition to the Purchaser's obligation to
purchase the Warrants, at the Closing, Morrison & Foerster LLP, counsel for the
Company, shall have delivered its favorable opinion in the form attached as
EXHIBIT B hereto.

                  SECTION 5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
PURCHASER. The Purchaser represents and warrants to, and covenants with, the
Company that:

         5.1 EXPERIENCE. (i) the Purchaser is knowledgeable, sophisticated and
experienced in making, and is qualified to make, decisions with respect to
investments in securities representing an investment decision of the type
involved in the purchase of the Warrants, including investments in securities
issued by the Company and comparable entities, has requested, received, reviewed
and considered all information it deems relevant in making an informed decision
to purchase the Warrants; (ii) the Purchaser is acquiring the Warrants set forth
in Section 2 above for its own account with no present intention of distributing
any of such Warrants or any arrangement or understanding with any other persons
regarding the distribution of such Warrants (this representation and warranty
not limiting the Purchaser's right to sell Warrant Shares pursuant to the
Registration Statement or in compliance with the Securities Act and the related
Rules and Regulations); (iii) the Purchaser will not, directly or indirectly,
offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of) any of the Warrants or
the Warrant Shares, nor will the Purchaser engage in any short sale that results
in a disposition of any of the Warrants by the Purchaser, except in compliance
with the Securities Act, the Exchange Act and the Rules and Regulations and any
applicable state securities laws; (iv) the Purchaser will complete or cause to
be completed the Registration Statement Questionnaire attached hereto as part of
APPENDIX I, for use in preparation of any Registration Statement covering the
Warrant Shares, and the answers thereto will be true and correct as of the date
of completion and will be true and correct as of the effective date of the
Registration Statement, and the Purchaser will notify the Company promptly

                                       13
<PAGE>

if any material change in any such information provided in the Registration
Statement Questionnaire occurs until such time as the Purchaser has sold all of
its Warrants and Warrant Shares; (v) the Purchaser has, in connection with its
decision to purchase the Warrants set forth in Section 2 above, relied solely
upon the Exchange Act Reports and the documents or information included or
incorporated by reference therein or furnished to the Purchaser and the
representations and warranties of the Company contained herein; (vi) the
Purchaser has had an opportunity to discuss this investment with representatives
of the Company and ask questions of them; and (vii) the Purchaser is an
"accredited investor" within the meaning of Rule 501(a) of Regulation D
promulgated under the Securities Act; and (viii) the Purchaser will comply with
any requirements under Section 13 of the Exchange Act relating to the
transactions contemplated by this Agreement.

         5.2 RELIANCE ON EXEMPTIONS. The Purchaser understands that the Warrants
are being offered and sold to it in reliance upon specific exemptions from the
registration requirements of the Securities Act, the Rules and Regulations and
state securities laws and that the Company is relying upon the truth and
accuracy of, and the Purchaser's compliance with, its representations,
warranties, agreements, acknowledgments and understandings set forth herein in
order to determine the availability of such exemptions and the eligibility of
the Purchaser to acquire the Warrants.

         5.3 INVESTMENT DECISION. The Purchaser understands that nothing in the
Agreement or any other materials presented to the Purchaser in connection with
the purchase and sale of the Warrants constitutes legal, tax or investment
advice. The Purchaser acknowledges that it must rely on legal, tax and
investment advisors of its own choosing in connection with its purchase of the
Warrants.

         5.4 RISK OF LOSS. The Purchaser understands that its investment in the
Warrants involves a significant degree of risk, including a risk of total loss
of the Purchaser's investment, and the Purchaser has full cognizance of and
understands all of the risk factors related to the Purchaser's purchase of the
Warrants, including, but not limited to, those set forth under the caption "Risk
Factors" in the Company's Annual Report on Form 10-K for the year ended December
31, 2006, and in the Company's most recent Quarterly Report on Form 10-Q. The
Purchaser understands that the market price of the Common Stock has been
volatile and that no representation is being made as to the future value or
trading volume of the Common Stock. The Purchaser has the ability to bear the
economic risks of an investment in the Warrants and the Warrant Shares.

         5.5 NO GOVERNMENT REVIEW. The Purchaser understands that no United
States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Warrants or the
Warrant Shares.

         5.6 TRANSFER OR RESALE. The Purchaser understands that, until such time
as the Registration Statement has been declared effective or the Warrant Shares
may be sold pursuant to Rule 144 under the Securities Act without any
restriction as to the number of securities as of a particular date that can then
be immediately sold, the Warrants and the Warrant Shares will bear a restrictive
legend in substantially the following form:

                                       14
<PAGE>

             "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT
             BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
             AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS
             OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY
             NOT BE OFFERED,  SOLD OR OTHERWISE  TRANSFERRED EXCEPT
             (1) PURSUANT TO AN EXEMPTION FROM  REGISTRATION  UNDER
             THE  SECURITIES  ACT OR (2)  PURSUANT TO AN  EFFECTIVE
             REGISTRATION  STATEMENT  UNDER THE SECURITIES  ACT, IN
             EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES
             LAWS OF THE UNITED STATES AND OTHER JURISDICTIONS, AND
             IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION,
             UNLESS THE COMPANY HAS  RECEIVED AN OPINION OF COUNSEL
             REASONABLY  SATISFACTORY  TO IT THAT SUCH  TRANSACTION
             DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT
             AND SUCH OTHER  APPLICABLE LAWS.  NOTWITHSTANDING  THE
             FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
             WITH A BONA  FIDE  MARGIN  ACCOUNT  OR  OTHER  LOAN OR
             FINANCING ARRANGEMENT SECURED BY THE SECURITIES."

         5.7 RESIDENCY. The Purchaser's principal executive offices are in the
jurisdiction set forth immediately below the Purchaser's name on the signature
pages hereto

         5.8 ORGANIZATION; VALIDITY; ENFORCEMENTS. (i) The Purchaser has full
legal right, power and authority to enter into this Agreement and to perform the
transactions contemplated hereby; (ii) this Agreement has been duly authorized,
executed and delivered by, and is a valid and binding agreement of, the
Purchaser, enforceable in accordance with its terms, except as (A) rights to
indemnification hereunder may be limited by applicable law and (B) the
enforcement hereof may be may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles; (iii) the
Purchaser's execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby will not (A) violate any
provision of the organizational documents of the Purchaser, (B) conflict with or
constitute a breach of, or Default under any material agreement, mortgage, deed
of trust, lease, franchise, license, indenture, permit or other instrument to
which the Purchaser is a party, or (C) result in the violation of any statute,
law, rule regulation, judgment, order or decree of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority having
jurisdiction over the Purchaser, (iv) no consent, approval, authorization or
other order of, or registration or filing with, any court or other governmental
or regulatory authority or agency is required for the Purchaser's execution,
delivery and performance of this Agreement or the consummation of the
transactions contemplated hereby, except such as may be required under the state
securities or Blue Sky laws or the by-laws and rules of the NASD, except (solely
in the case of clauses (ii),

                                       15
<PAGE>

(iii) and (iv) of the paragraph) for such violations and defaults as would not
reasonably be expected to have a material adverse effect on the transactions
contemplated by this Agreement.

                  SECTION 6. SURVIVAL OF AGREEMENT, REPRESENTATIONS AND
WARRANTIES. Notwithstanding any investigation made by any party to this
Agreement, all covenants and agreements made by the Company and the Purchaser
herein and in the certificates for the Warrants and the Warrant Shares delivered
pursuant hereto, as applicable, shall survive the Closing and the delivery to
the Purchaser of the Warrants. All representations and warranties made by the
Company and the Purchaser herein and in the certificates for the Warrants
delivered pursuant hereto shall survive for a period of one year following the
later of the execution of this Agreement, the delivery to the Purchaser of the
Warrants being purchased and the payment therefor.

                  SECTION 7. BROKER'S FEE. Each of the parties hereto hereby
represents that, on the basis of any actions and agreements by it, there are no
brokers or finders entitled to compensation in connection with the sale of the
Warrants to the Purchaser.

                  SECTION 8. NOTICES. All notices, requests, consents and other
communications required or permitted hereunder shall be in writing, shall be
mailed by first-class registered or certified airmail, e-mail, confirmed
facsimile or nationally recognized overnight express courier postage prepaid,
and shall be deemed given when so mailed and shall be delivered as addressed as
follows:

                       (a) if to the Company, to:

                           Delta Financial Corporation
                           1000 Woodbury Road, Suite 2000
                           Woodbury, New York  11797
                           Attention: Marc E. Miller, Esq.
                           Facsimile: (516) 364-9450

                           with a copy to:

                           Morrison & Foerster LLP
                           1290 Avenue of the Americas
                           New York, New York  10104
                           Attention: James R. Tanenbaum, Esq.
                           Facsimile: (212) 468-7900

                  or to such other person at such other place as the Company
                  shall designate to the Purchaser in writing.

                       (b) if to the Purchaser, at its address as set forth at
                           the end of this Agreement, or at such other address
                           or addresses as may have been furnished to the
                           Company in writing.

                  SECTION 9. CHANGES. This Agreement may not be modified or
amended except pursuant to an instrument in writing signed by the Company and
the Purchaser. No

                                       16
<PAGE>

provision hereunder may be waived other than in a written instrument executed by
a waiving party.

                  SECTION 10. HEADINGS. The headings of the various sections of
this Agreement have been inserted for convenience of reference only and shall
not be deemed to be part of this Agreement.

                  SECTION 11. SEVERABILITY. In case any provision contained in
this Agreement should be invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.

                  SECTION 12. GOVERNING LAW; VENUE. This Agreement is to be
construed in accordance with and governed by the federal law of the United
States of America and the internal laws of the State of New York without giving
effect to any choice of law rule that would cause the application of the laws of
any jurisdiction other than the internal laws of the State of New York to the
rights and duties of the parties. Each of the Company and the Purchaser submits
to the nonexclusive jurisdiction of the United States District Court for the
Southern District of New York and of any New York State court sitting in New
York County for purposes of all legal proceedings arising out of or relating to
this Agreement and the transactions contemplated hereby.

                  SECTION 13. COUNTERPARTS. This Agreement may be executed
(including, without limitation, by facsimile signature or by delivery by
portable document format ("PDF")) in two or more counterparts, each of which
shall constitute an original, but all of which, when taken together, shall
constitute but one instrument, and shall become effective when one or more
counterparts have been signed by each party hereto and delivered (including by
facsimile) to the other parties.

                  SECTION 14. ENTIRE AGREEMENT. This Agreement and the
instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor the Purchaser
makes any representation, warranty, covenant or undertaking with respect to such
matters. Each party expressly represents and warrants that it is not relying on
any oral or written representations, warranties, covenants or agreements outside
of this Agreement.

                  SECTION 15. FEES AND EXPENSES. Except as set forth herein,
each of the Company and the Purchaser shall pay its respective fees and expenses
related to the transactions contemplated by this Agreement.

                  SECTION 16. ASSIGNMENT. This Agreement is made solely for the
benefit of and is binding upon the Purchaser and the Company and any person
controlling the Company or the Purchaser, the officers and directors of the
Company, and their respective executors, administrators, successors and assigns,
and no other person shall acquire or have any right under or by virtue of this
Agreement. This Agreement may not be assigned by either party without the prior
written consent of the other party, however, the Purchaser may transfer its
rights under this Agreement to any of its affiliates to whom it transfers the
Warrants or the Warrant Shares. The

                                       17
<PAGE>

term "successors and assigns" shall not include any subsequent purchaser of the
Warrants other than affiliates of the Purchaser to whom it transfers the
Warrants or the Warrant Shares.

                  [Remainder of Page Left Intentionally Blank]

                                       18
<PAGE>

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

                                        DELTA FINANCIAL CORPORATION

                                        By: /s/ Hugh Miller
                                        ------------------------------------
                                        Name: Hugh Miller
                                        Title: President and Chief Executive
                                        Officer

                  Print or Type:

                                        AG DELTA HOLDINGS, LLC
                                        ----------------------------------------
                                        Name of Purchaser
                                        (Individual or Institution)

                                        New York
                                        ----------------------------------------
                                        Jurisdiction of Purchaser's Executive
                                        Offices

                                        Salah Saabneh
                                        ----------------------------------------
                                        Name of Individual representing
                                        Purchaser (if an Institution)

                                        Authorized Officer
                                        ----------------------------------------
                                        Title of Individual representing
                                        Purchaser (if an Institution)

                  Signature by:

                                        Individual Purchaser or Individual
                                        representing Purchaser:

                                        /s/ Salah Saabneh
                                        -----------------

                                        Address: c/o Angel, Gordon & Co.,
                                        245 Park Avenue, New York, NY 10167

                 SIGNATURE PAGE TO WARRANT ACQUISITION AGREEMENTTHIS WARRANT AND THE SECURITIES THAT MAY BE ACQUIRED UPON THE EXERCISE OF THIS
WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE
SECURITIES LAWS. NEITHER THIS WARRANT NOR THE SECURITIES THAT MAY BE ACQUIRED
UPON THE EXERCISE OF THIS WARRANT MAY BE SOLD, PLEDGED, TRANSFERRED, ASSIGNED OR
OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR UPON DELIVERY
TO THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAW IS NOT
REQUIRED.

                           DELTA FINANCIAL CORPORATION
                           ---------------------------
                             STOCK PURCHASE WARRANT
                             ----------------------

                   VOID AFTER 5:00 P.M., EASTERN STANDARD TIME

                      ON THE EXPIRATION DATE DEFINED BELOW

Date of Issuance: August 14, 2007           Certificate No.W-__

         FOR VALUE RECEIVED, Delta Financial Corporation, a Delaware corporation
(the "Company"), hereby grants to ______________________ or its registered
assigns (the "Registered Holder") warrants (the "Warrants," which defined term
includes any warrant issued in replacement, exchange or substitution for this
Warrant) to purchase from the Company up to _________________ (the "Warrant
Shares") of the Company's common stock, $0.01 par value per share ("Common
Stock" or at a price per share of $5.00 (as adjusted from time to time
hereunder, the "Exercise Price"). Certain capitalized terms used herein are
defined in Section 6 hereof. The amount and kind of securities obtainable
pursuant to the rights granted hereunder and the purchase price for such
securities are subject to adjustment pursuant to the provisions contained in
this Warrant.

         This Warrant is subject to the following provisions:

Section 1.  EXERCISE OF WARRANT.

         1A. EXERCISE PERIOD. The Registered Holder may exercise, in whole or in
part, the purchase rights represented by this Warrant at any time and from time
to time after the Date of Issuance to and including February 16, 2009 (the
"Exercise Period"). If the Company does not obtain stockholder approval for the
issuance of the Warrant Shares, as required by the Investor Rights Agreement
(the "Investor Rights Agreement"), dated August 13, 2007, between the Company
and AG Delta Holdings, LLC, a Delaware limited liability company ("AGDH"), on or
prior to November 14, 2007, then the Exercise Period shall be extended by the
number of days after November 14, 2007 that such stockholder approval is
obtained. The last date of the

                                       1
<PAGE>

Exercise Period is referred to herein as the "Expiration Date." The Company
shall give the Registered Holder written notice of the expiration of the rights
hereunder at least 30 days but not more than 90 days prior to the end of the
Exercise Period.

         1B. EXERCISE OF WARRANTS

                  (i) METHOD OF EXERCISE. The Warrant evidenced hereby may be
exercised by the Registered Holder, in whole or in part, by the delivery at the
principal office of the Company (or at such other office or agency of the
Company as it may designate by notice in writing to the Registered Holder),
during normal business hours, of this Warrant and the Exercise Agreement
(substantially in the form attached hereto as Exhibit I), duly completed and
executed, and either (1) payment of the Purchase Price (as such term is defined
in Section 1B(x) below) in cash, by wire transfer of immediately available
United States federal funds or by bank certified, treasurer's or cashier's check
payable to the order of the Company, (2) the reduction of the principal amount
of indebtedness outstanding under the Financing Agreements (as defined in the
Warrant Acquisition Agreement (the "Warrant Acquisition Agreement"), dated
August 13, 2007, between the Company and AGDH) by the Registered Holder or its
affiliates (or any other indebtedness of the Issuer or its affiliates, if so
agreed in writing by the Company or (3) a duly completed and executed Form of
Cashless Exercise. Upon delivery of the Exercise Agreement, this Warrant and the
Purchase Price, the Company shall deliver to the Registered Holder that number
of Warrant Shares which is equal to the Purchase Price divided by the Exercise
Price, as may be adjusted from time to time.

                  (ii) CASHLESS EXERCISE. In lieu of exercising the Warrant
evidenced hereby pursuant to Section 1B(i) above, the Registered Holder shall
have the right during the Exercise Period to exercise this Warrant, in whole or
in part, by surrendering this Warrant to the Company accompanied by the Form of
Cashless Exercise (in the form attached hereto as Exhibit II), duly completed
and executed. Upon delivery of the Form of Cashless Exercise and this Warrant,
the Company shall deliver to the Registered Holder (without payment by the
Registered Holder of any cash or adjustments to the amount of indebtedness under
the Financing Agreements (or other indebtedness, if applicable) in respect of
the Purchase Price) that number of shares of Common Stock which is equal to the
amount obtained by dividing (x) an amount equal to (1) the aggregate Market
Price for the Warrant Shares as to which this cashless exercise right is then
being exercised (the "Cashless Exercise Shares"), determined as of immediately
prior to the effective time of the exercise of this cashless exercise right,
minus (2) the aggregate Exercise Price then applicable to the Cashless Exercise
Shares (such difference, the "Cashless Exercise Amount"), by (y) the Market
Price of one share of Common Stock determined as of the close of trading
immediately after the effective time of the exercise of this cashless exercise
right. Upon exercise of this cashless exercise right, the Cashless Exercise
Amount shall be deemed to have been paid to the Company in respect of the
Warrant Shares so acquired. Any references in this Warrant to the "exercise" of
this Warrant, and the use of the term "exercise" herein, shall be deemed to
include, without limitation, any exercise of the Cashless Exercise right.

                  (iii) Certificates for shares of Common Stock purchased upon
exercise of this Warrant shall be delivered by the Company to the Registered
Holder as soon as practicable after surrender of the Warrant and either (a)
payment of the Purchase Price (in cash or adjustments to

                                       2
<PAGE>

the amount of indebtedness under the Financing Agreements (or other
indebtedness, if applicable)) and delivery of the Exercise Agreement or (b)
delivery of the Form of Cashless Exercise to the Company, and in any event
within ten (10) days after such surrender, payment and delivery to the Company
in the manner described above. Unless this Warrant has expired or all of the
purchase rights represented hereby have been exercised, the Company shall
prepare a new Warrant, substantially identical hereto, in the name of Registered
Holder, representing the rights formerly represented by this Warrant which have
not expired or been exercised and shall, as soon as practicable, and in any
event within ten (10) days after such surrender, payment and delivery to the
Company in the manner described above, deliver such new Warrant to the
Registered Holder or to such Person as the Registered Holder has designated for
delivery.

                  (iv) The Common Stock issuable upon the exercise of this
Warrant shall be deemed to have been issued to the Registered Holder as of the
close of business on the date on which this Warrant shall have been surrendered
to the Company and delivery of (1) the Purchase Price and Exercise Agreement or
(2) Form of Cashless Exercise has been made to the Company, and the Registered
Holder shall be deemed for all purposes to have become the record holder of such
Warrant Shares on that date.

                  (v) The issuance of certificates for shares of Common Stock
upon exercise of this Warrant shall be made without charge to the Registered
Holder with respect to any issuance tax or other cost incurred by the Company in
connection with such exercise and the related issuance of shares of Common
Stock. Each share of Common Stock issuable upon exercise of this Warrant shall,
upon payment of the Exercise Price therefor, be duly authorized, validly issued,
fully paid and nonassessable and free from all taxes, liens and charges with
respect to the issuance thereof.

                  (vi) The Company shall not close its books against the
transfer of this Warrant or of any share of Common Stock issued or issuable upon
the exercise of this Warrant in any manner which interferes with the timely
exercise of this Warrant. The Company shall from time to time take all such
action as may be necessary to insure that the par value per share of the
unissued Common Stock acquirable upon exercise of this Warrant is at all times
equal to or less than the Exercise Price then in effect.

                  (vii) The Company shall assist and cooperate with any
Registered Holder required to make any governmental filings or obtain any
governmental approvals prior to, or in connection with, the exercise of this
Warrant (including making any filings required to be made by the Company).

                  (viii) The Company shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for
the purpose of issuance upon the exercise of the Warrants, at least such number
of shares of Common Stock issuable upon the exercise in full of all outstanding
Warrants. The Company shall take all such actions as may be necessary to insure
that all such shares of Common Stock may be so issued without violation of any
applicable law or governmental regulation or any requirements of any domestic
securities exchange upon which shares of Common Stock may be listed (except for
official notice of issuance which shall be immediately delivered by the Company
upon each such issuance). The

                                       3
<PAGE>

Company shall not take any action which would cause the number of authorized but
unissued shares of Common Stock to be less than the number of such shares
required to be reserved hereunder for issuance upon exercise of the Warrants.

                  (ix) If the shares of Common Stock issuable by reason of
exercise of this Warrant are convertible into or exchangeable for any other
stock or securities of the Company, the Company shall, at the Registered
Holder's option and upon surrender of this Warrant by such holder as provided
above, together with any notice, statement or payment required to effect such
conversion or exchange of Common Stock, deliver to such holder (or such other
Person specified by such holder) a certificate or certificates representing the
stock or securities into which the shares of Common Stock issuable by reason of
such conversion are convertible or exchangeable, registered in such name or
names and in such denomination or denominations as such holder has specified.

                  (x) PURCHASE PRICE. The Purchase Price shall be the amount
equal to the product of the Exercise Price multiplied by the number of shares of
Common Stock being purchased upon such exercise.

                  (xi) Notwithstanding any other provision hereof, if an
exercise of any portion of this Warrant is to be made in connection with a
registered public offering or the sale of the Company, the exercise of any
portion of this Warrant may, at the election of the holder hereof, be
conditioned upon the consummation of the public offering or sale of the Company,
in which case such exercise shall not be deemed to be effective until the
consummation of such transaction.

         1C. FRACTIONAL SHARES. If a fractional share of Common Stock would be
issuable upon exercise of the rights represented by this Warrant, the Company
shall, as soon as practicable after the date of exercise, deliver to the
Registered Holder a check payable to the Registered Holder, in lieu of such
fractional share, in an amount equal to the difference between (x) the Market
Price of such fractional share as of the date of the Exercise Time and (y) the
Exercise Price of such fractional share.

         1D. LIMITATION ON EXERCISE.  This Warrant represents one of a series of
warrants to purchase up to 10,000,000 shares of Common Stock that were initially
issued on August  14,  2007.  Until the  issuance  of the shares  issuable  upon
exercise of the  warrants of this  series  have been  approved by the  Company's
stockholders  as  required  by  applicable  law  and  the  Warrant   Acquisition
Agreement, this Warrant (including any warrant certificates issued upon exchange
of this Warrant),  together with the other warrants of the same series, may only
be exercised for an aggregate of 4,700,000  shares of Common Stock;  the Company
shall have no  obligation  to issue any shares of Common Stock upon  exercise of
this  Warrant  that  would  cause  the  aggregate  of such  issuances  to exceed
4,700,000 shares prior to the receipt of the required stockholder approval.

Section 2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES. In order to
prevent dilution of the rights granted under this Warrant, the Exercise Price
shall be subject to adjustment from time to time as provided in this Section 2,
and the number of shares of Common Stock obtainable upon exercise of this
Warrant shall be subject to adjustment from time to time as provided in this
Section 2.

                                       4
<PAGE>

         2A. ADJUSTMENTS OF NUMBER OF SHARES/EXERCISE PRICE UPON ISSUANCE OF
COMMON STOCK. (a) If and whenever on or after the Date of Issuance of this
Warrant, the Company issues or sells, or in accordance with paragraph 2B is
deemed to have issued or sold, any share of Common Stock for a consideration per
share less than the Exercise Price in effect immediately prior to such time,
then immediately upon such issue or sale the Exercise Price shall be reduced to
the lowest net price per share at which such share of Common Stock has been
issued or sold or is deemed to have been issued or sold. Upon each such
adjustment of the Exercise Price hereunder, the number of shares of Common Stock
acquirable upon exercise of this Warrant shall be adjusted to the number of
shares determined by multiplying the Exercise Price in effect immediately prior
to such adjustment by the number of shares of Common Stock acquirable upon
exercise of this Warrant immediately prior to such adjustment and dividing the
product thereof by the Exercise Price resulting from such adjustment.

              (b) The provisions of this Section 2A shall not apply to: (i) the
              issuance of shares of securities pursuant to a split or
              subdivision of the outstanding shares of Common Stock or the
              determination of holders of Common Stock entitled to receive a
              dividend or other distribution payable in additional shares of
              Common Stock or other securities or rights convertible into, or
              entitling the holder thereof to receive directly or indirectly,
              additional shares of Common Stock (hereinafter referred to as
              "Common Stock Equivalents") without payment of any consideration
              by such holder for the additional shares of Common Stock or the
              Common Stock Equivalents (including the additional shares of
              Common Stock issuable upon conversion or exercise thereof); (ii)
              the issuance of shares of Common Stock or options therefor to
              employees, consultants, officers or directors (if in transactions
              with primarily non-financing purposes) of the Company pursuant to
              a stock option plan or restricted stock purchase plan or similar
              grant outside of a plan approved by the Board of Directors of the
              Company; (iii) the issuance of shares of Common Stock pursuant to
              the conversion or exercise of convertible or exercisable
              securities outstanding as of the date hereof (provided that
              amendments to the terms of such securities shall be subject to
              this Section 2A if they affect the exercise price, conversion
              price or number of shares of Common Stock that may be issued
              thereunder); (iv) the issuance of shares of Common Stock in
              connection with a bona fide business acquisition of or by the
              Company, whether by merger, consolidation, sale of assets, sale or
              exchange of stock or otherwise, each as approved by the Board of
              Directors of the Company (which such shares, for the avoidance of
              doubt, may only be used pursuant to this clause (iv) as the
              consideration for the entity, stock or assets to be acquired, and
              not for the purpose of obtaining financing for the proposed
              acquisition); (v) the issuance or sale of stock, warrants or other
              securities or rights to Persons or entities with which the Company
              has business relationships provided such issuances are for other
              than primarily equity financing purposes and provided that at the
              time of any such issuance, the aggregate of such issuance and
              similar issuances do not exceed shares of Common Stock with an
              aggregate value of $2,000,000 (as reasonably determined by the
              Company's Board of Directors, and which such amount may be
              increased upon the written consent of the Registered Holder, which
              such consent shall not be unreasonably withheld); (vi) shares of
              Common Stock issuable upon exercise of this Warrant; and (vii)
              transactions with the Registered Holder or its affiliates.

                                       5
<PAGE>

         2B. EFFECT ON EXERCISE PRICE OF CERTAIN EVENTS. For purposes of
determining the adjusted Exercise Price under paragraph 2A, the following shall
be applicable:

                  (i) ISSUANCE OF RIGHTS OR OPTIONS. If the Company in any
manner grants or sells any Options and the lowest price per share for which any
one share of Common Stock is issuable upon the exercise of any such Option, or
upon conversion or exchange of any Convertible Security issuable upon exercise
of such Option, is less than the Exercise Price in effect immediately prior to
the time of the granting or sale of such Option, then such share of Common Stock
shall be deemed to have been issued and sold by the Company at such time for
such price per share. For purposes of this paragraph, the "lowest price per
share for which any one share of Common Stock is issuable" shall be equal to the
sum of the lowest amounts of consideration (if any) received or receivable by
the Company with respect to any one share of Common Stock upon the granting or
sale of the Option, upon exercise of the Option and upon conversion or exchange
of the Convertible Security. No further adjustment of the Exercise Price shall
be made upon the actual issue of such Common Stock or of such Convertible
Security upon the exercise of such Options or upon the actual issue of such
Common Stock upon conversion or exchange of such Convertible Security.

                  (ii) ISSUANCE OF CONVERTIBLE SECURITIES. If the Company in any
manner issues or sells any Convertible Security and the lowest price per share
for which any one share of Common Stock is issuable upon conversion or exchange
thereof is less than the Exercise Price in effect immediately prior to the time
of such issue or sale, then such share or shares of Common Stock shall be deemed
to have been issued and sold by the Company at such time for such price per
share. For the purposes of this paragraph, the "lowest price per share for which
any one share of Common Stock is issuable" shall be equal to the sum of the
lowest amounts of consideration (if any) received or receivable by the Company
with respect to any one share of Common Stock upon the issuance of the
Convertible Security and upon the conversion or exchange of such Convertible
Security. No further adjustment of the Exercise Price shall be made upon the
actual issue of such Common Stock upon conversion or exchange of any Convertible
Security, and if any such issue or sale of such Convertible Security is made
upon exercise of any Options for which adjustments of the Exercise Price had
been or are to be made pursuant to other provisions of this Section 2, no
further adjustment of the Exercise Price shall be made by reason of such issue
or sale.

                  (iii) CHANGE IN OPTION PRICE OR CONVERSION RATE. If the
purchase price provided for in any Options, the additional consideration, if
any, payable upon the issue, conversion or exchange of any Convertible
Securities, or the rate at which any Convertible Securities are convertible into
or exchangeable for Common Stock changes at any time, the Exercise Price in
effect at the time of such change shall be adjusted immediately to the Exercise
Price which would have been in effect at such time had such Options or
Convertible Securities still outstanding provided for such changed purchase
price, additional consideration or changed conversion rate, as the case may be,
at the time initially granted, issued or sold and the number of shares of Common
Stock issuable hereunder shall be correspondingly adjusted; provided that if
such adjustment would result in an increase of the Exercise Price then in
effect, such adjustment shall not be effective until 30 days after written
notice thereof has been given by the Company to

                                       6
<PAGE>

all holders of the Warrants. For purposes of this paragraph 2B, if the terms of
any Option or Convertible Security which was outstanding as of the date of
issuance of this Warrant are changed in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the Common
Stock deemed issuable upon exercise, conversion or exchange thereof shall be
deemed to have been issued as of the date of such change; provided that no such
change shall at any time cause the Exercise Price hereunder to be increased.

                  (iv) TREATMENT OF EXPIRED OPTIONS AND UNEXERCISED CONVERTIBLE
SECURITIES. Upon the expiration of any Option or the termination of any right to
convert or exchange any Convertible Securities without the exercise of such
Option or right, the Exercise Price then in effect shall be adjusted immediately
to the Exercise Price which would have been in effect at the time of such
expiration or termination had such Option or Convertible Securities, to the
extent outstanding immediately prior to such expiration or termination, never
been issued; provided that if such expiration or termination would result in an
increase in the Exercise Price then in effect, such increase shall not be
effective until 30 days after written notice thereof has been given to all
holders of the Warrants. For purposes of this paragraph 2B, the expiration or
termination of any Option or Convertible Security which was outstanding as of
the date of issuance of this Warrant shall not cause the Exercise Price
hereunder to be adjusted unless, and only to the extent that, a change in the
terms of such Option or Convertible Security caused it to be deemed to have been
issued after the date of issuance of this Warrant.

                  (v) CALCULATION OF CONSIDERATION RECEIVED. If any Common
Stock, Options or Convertible Securities are issued or sold or deemed to have
been issued or sold for cash, the consideration received therefor shall be
deemed to be the net amount received by the Company therefor. In case any Common
Stock, Options or Convertible Securities are issued or sold for a consideration
other than cash, the amount of the consideration other than cash received by the
Company shall be the fair value of such consideration, except where such
consideration consists of securities, in which case the amount of consideration
received by the Company shall be the Market Price thereof as of the date of
receipt. In case any Common Stock, Options or Convertible Securities are issued
to the owners of the non-surviving entity in connection with any merger in which
the Company is the surviving corporation, the amount of consideration therefor
shall be deemed to be the fair value of such portion of the net assets and
business of the non-surviving entity as is attributable to such Common Stock,
Options or Convertible Securities, as the case may be. The fair value of any
consideration other than cash or securities shall be determined jointly by the
Company and the Registered Holders of Warrants representing a majority of the
shares of Common Stock obtainable upon exercise of such Warrants. If such
parties are unable to reach agreement within a reasonable period of time, such
fair value shall be determined by an appraiser jointly selected by the Company
and the Registered Holders of Warrants representing a majority of the shares of
Common Stock obtainable upon exercise of such Warrants. If the Company and such
Registered Holders cannot agree upon an appraiser, each of the Company and such
Registered Holders shall select an appraiser, and such two appraisers shall
determine a third party that will act as appraiser. The determination of such
appraiser shall be final and binding on the Company and the Registered Holders
of the Warrants, and the fees and expenses of such appraiser shall be paid by
the Company.

                                       7
<PAGE>

                  (vi) INTEGRATED TRANSACTIONS. In case any Option is issued in
connection with the issue or sale of other securities of the Company, together
comprising one integrated transaction in which no specific consideration is
allocated to such Options by the parties thereto, the Options shall be deemed to
have been issued without consideration.

                  (vii) TREASURY SHARES. The number of shares of Common Stock
outstanding at any given time does not include shares owned or held by or for
the account of the Company or any Subsidiary, and the disposition of any shares
so owned or held shall be considered an issue or sale of Common Stock.

         2C. SUBDIVISION OR COMBINATION OF COMMON STOCK. If the Company at any
time subdivides (by any stock split, stock dividend, recapitalization or
otherwise) one or more classes of its outstanding shares of Common Stock into a
greater number of shares, the Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced and the number of shares of Common
Stock obtainable upon exercise of this Warrant shall be proportionately
increased. If the Company at any time combines (by reverse stock split or
otherwise) one or more classes of its outstanding shares of Common Stock into a
smaller number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased and the number of shares of
Common Stock obtainable upon exercise of this Warrant shall be proportionately
decreased.

         2D. REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE.
Any recapitalization, reorganization, reclassification, consolidation, merger,
sale of all or substantially all of the Company's assets or other transaction,
which in each case is effected in such a way that the holders of Common Stock
are entitled to receive (either directly or upon subsequent liquidation) stock,
securities or assets with respect to or in exchange for Common Stock is referred
to herein as an "Organic Change." Prior to the consummation of any Organic
Change, the Company shall make appropriate provision (in form and substance
reasonably satisfactory to the Registered Holders of the Warrants representing a
majority of the Common Stock obtainable upon exercise of all Warrants then
outstanding) to insure that each of the Registered Holders of the Warrants shall
thereafter have the right to acquire and receive, in lieu of or in addition to
(as the case may be) the shares of Common Stock immediately theretofore
acquirable and receivable upon the exercise of such holder's Warrant, such
shares of stock, securities or assets as may be issued or payable with respect
to or in exchange for the number of shares of Common Stock immediately
theretofore acquirable and receivable upon exercise of such holder's Warrant had
such Organic Change not taken place. In any such case, the Company shall make
appropriate provision (in form and substance reasonably satisfactory to the
Registered Holders of the Warrants representing a majority of the Common Stock
obtainable upon exercise of all Warrants then outstanding) with respect to such
holders' rights and interests to insure that the provisions of this Section 2
and Sections 1, 3 and 4 hereof shall thereafter be applicable to the Warrants
(including, in the case of any such consolidation, merger or sale in which the
successor entity or purchasing entity is other than the Company, an immediate
adjustment of the Exercise Price to the value for the Common Stock reflected by
the terms of such consolidation, merger or sale, and a corresponding immediate
adjustment in the number of shares of Common Stock acquirable and receivable
upon exercise of the Warrants, if the value so reflected is less than the
Exercise Price in effect immediately prior to such consolidation, merger or
sale). The Company shall not effect

                                       8
<PAGE>

any such consolidation, merger or sale, unless prior to the consummation
thereof, the successor entity (if other than the Company) resulting from
consolidation or merger or the entity purchasing such assets assumes by written
instrument (in form and substance satisfactory to the Registered Holders of
Warrants representing a majority of the Common Stock obtainable upon exercise of
all the Warrants then outstanding), the obligation to deliver to each such
holder such shares of stock, securities or assets as, in accordance with the
foregoing provisions, such holder may be entitled to acquire.

         2E. NOTICES

                  (i) Immediately upon any adjustment of Exercise Price, the
Company shall give written notice thereof to the Registered Holder, setting
forth in reasonable detail and certifying the calculation of such adjustment.

                  (ii) The Company shall give written notice to the Registered
Holder at least 20 days prior to the date on which the Company closes its books
or takes a record (x) with respect to any dividend or distribution upon the
Common Stock, (y) with respect to any pro rata subscription offer to holders of
Common Stock, or (z) for determining rights to vote with respect to any Organic
Change, dissolution or liquidation.

                  (iii) The Company also shall give written notice to the
Registered Holder at least 20 days prior to the date on which any Organic
Change, dissolution or liquidation shall take place.

Section 3. LIQUIDATING DIVIDENDS. If the Company declares or pays a dividend
upon the Common Stock that is payable otherwise than in cash out of earnings or
earned surplus (determined in accordance with generally accepted accounting
principles, consistently applied) (except for a stock dividend payable in shares
of Common Stock) (a "Liquidating Dividend"), then the Company shall pay to the
Registered Holder of this Warrant at the time of payment thereof the Liquidating
Dividend which would have been paid to such Registered Holder on the Common
Stock had this Warrant been fully exercised immediately prior to the date on
which a record is taken for such Liquidating Dividend, or, if no record is
taken, the date as of which the record holders of Common Stock entitled to such
dividends are to be determined.

Section 4. PURCHASE RIGHTS. If at any time the Company grants, issues or sells
any Options, Convertible Securities or rights to purchase stock, warrants,
securities or other property pro rata to the record holders of any class of
Common Stock (the "Purchase Rights"), then the Registered Holder of this Warrant
shall be entitled to acquire, upon the terms applicable to such Purchase Rights,
the aggregate Purchase Rights which such holder could have acquired if such
holder had held the number of shares of Common Stock acquirable upon complete
exercise of this Warrant immediately before the date on which a record is taken
for the grant, issuance or sale of such Purchase Rights, or, if no such record
is taken, the date as of which the record holders of Common Stock are to be
determined for the grant, issue or sale of such Purchase Rights.

                                       9
<PAGE>

Section 5.  REGISTRATION RIGHTS.

         The shares of Common Stock issuable hereunder are subject to the
registration rights granted pursuant to the Investor Rights Agreement executed
in connection with the issuance of this Warrant.

Section 6.  DEFINITIONS.  The following terms have meanings set forth below:

         "COMMON STOCK" means, collectively, the Common Stock and any capital
stock of any class of the Company hereafter authorized which is not limited to a
fixed sum or percentage of par or stated value in respect to the rights of the
holders thereof to participate in dividends or in the distribution of assets
upon any liquidation, dissolution or winding up of the Company.

         "CONVERTIBLE SECURITIES" means any stock or securities (directly or
indirectly) convertible into or exchangeable for Common Stock.

         "MARKET PRICE" means as to any security the average of the closing
prices, averaged over a period of 21 days consisting of the day as of which
"Market Price" is being determined and the 20 consecutive business days prior to
such day, of such security's sales on all domestic securities exchanges on which
such security may be listed at the time, or, if there have been no sales on any
such exchange on that day, the average of the highest bid and lowest asked
prices on all such exchanges at the end of such day, or, if on any day such
security is not so listed, the average of the representative bid and asked
prices quoted in the NASDAQ System as of 4:00 P.M., New York time, on such day,
or, if on any day such security is not quoted in the NASDAQ System, the average
of the highest bid and lowest asked prices on such day in the domestic
over-the-counter market as reported by the National Quotation Bureau,
Incorporated, or any similar successor organization; provided that, if such
security is listed on any domestic securities exchange, the term "business days"
as used in this sentence means business days on which such exchange is open for
trading. If at any time such security is not listed on any domestic securities
exchange or quoted in the NASDAQ System or the domestic over-the-counter market,
the "Market Price" shall be the fair value thereof determined jointly by the
Company and the Registered Holders of Warrants representing a majority of the
Common Stock purchasable upon exercise of all the Warrants then outstanding;
provided that if such parties are unable to reach agreement within a reasonable
period of time such fair value shall be determined by an appraiser jointly
selected by the Company and the Registered Holders of Warrants representing a
majority of the Common Stock purchasable upon exercise of all the Warrants then
outstanding. The determination of such appraiser shall be final and binding on
the Company and the Registered Holders of the Warrants, and the fees and
expenses of such appraiser shall be paid by the Company.

         "OPTIONS" means any rights or options to subscribe for or purchase
Common Stock or Convertible Securities.

         "PERSON" means an individual, a partnership, a joint venture, a
corporation, a limited liability company, a trust, an unincorporated
organization and a government or any department or agency thereof.

                                       10
<PAGE>

Section 7. WARRANT TRANSFERABLE. Subject to the transfer conditions referred to
in the legend endorsed hereon, and any other agreement between the Company and
the Registered Holder, this Warrant and all rights hereunder are transferable,
in whole or in part, without charge to the Registered Holder, upon surrender of
this Warrant with a properly executed Assignment (in the form of Exhibit III
hereto) at the principal office of the Company.

Section 8. WARRANT EXCHANGEABLE FOR DIFFERENT DENOMINATIONS. This Warrant is
exchangeable, upon the surrender hereof by the Registered Holder at the
principal office of the Company, for new Warrants of like tenor representing in
the aggregate the purchase rights hereunder, and each of such new Warrants shall
represent such portion of such rights as is designated by the Registered Holder
at the time of such surrender. The date the Company initially issues this
Warrant shall be deemed to be the "Date of Issuance" hereof regardless of the
number of times new certificates representing the unexpired and unexercised
rights formerly represented by this Warrant shall be issued. All Warrants
representing portions of the rights hereunder are referred herein as the
"Warrants."

Section 9. REPLACEMENT. Upon receipt of evidence reasonably satisfactory to the
Company (an affidavit of the Registered Holder shall be satisfactory) of the
ownership and the loss, theft, or destruction, or mutilation of any certificate
evidencing this Warrant, and in the case of any such loss, theft or destruction,
upon receipt of indemnity reasonably satisfactory to the Company (provided that,
if the holder is a financial institution or other institutional investor, its
own agreement shall be satisfactory), or, in the case of any such mutilation
upon surrender of such certificate, the Company shall (at its expense) execute
and deliver in lieu of such certificate a new certificate of like kind
representing the same rights represented by such lost, stolen, destroyed or
mutilated certificate and dated the date of such lost, stolen, destroyed or
mutilated certificate.

Section 10. NOTICES. Except as otherwise expressly provided herein, all notices
referred to in this Warrant shall be in writing and shall be delivered by
registered or certified mail, return receipt requested, postage prepaid or sent
by reputable overnight courier service (charges prepaid) and shall be deemed to
have been given when so mailed or sent (1) to the Company, at its principal
executive offices and (2) to the Registered Holder of this Warrant, at such
holder's address as it appears in the records of the Company (unless otherwise
indicated by any such holder).

Section 11. DESCRIPTIVE HEADINGS; GOVERNING LAW. The descriptive headings of the
several Sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. The corporation laws of the
State of Delaware shall govern all issues concerning the relative rights of the
Company and its shareholders. All other questions concerning the construction,
validity, enforcement and interpretation of this Warrant shall be governed by
the internal law of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York.

                                       11
<PAGE>

Section 12. LIMITATIONS OF LIABILITY. No provision hereof, in the absence of
affirmative action by the Registered Holder to purchase Common Stock, and no
enumeration herein of the rights or privileges of the Registered Holder shall
give rise to any liability of such holder for the Exercise Price of Common Stock
acquirable by exercise hereof or as a stockholder of the Company.

Section 13. AMENDMENT AND WAIVER. Except as otherwise provided herein, the
provisions of the Warrants may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of the Registered
Holders of Warrants representing a majority of the shares of Common Stock
obtainable upon exercise of the Warrants.

                                       12
<PAGE>

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed and
attested by its duly authorized officers under its corporate seal and to be
dated the Date of Issuance hereof.

                                        DELTA FINANCIAL CORPORATION

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

<PAGE>

                                    EXHIBIT I

                               EXERCISE AGREEMENT
                               ------------------

To: Delta Financial Corporation                Dated:

         The undersigned, pursuant to the provisions set forth in the attached
         Warrant (Certificate No. W-______ ), hereby irrevocably subscribes for
         the purchase of _______________ shares of the Common Stock covered by
         such Warrant and makes payment herewith in full therefor at the price
         per share provided by such Warrant. The undersigned requests that a
         certificate for such shares be issued in the name of [the undersigned]
         and be delivered to [the undersigned] at the address stated below. The
         undersigned further requests that, if the number of shares subscribed
         for herein shall not be all of the shares purchasable hereunder, that a
         new Warrant of like tenor for the balance of the shares purchasable
         hereunder be delivered to [the undersigned].

         Signature
                  --------------------------------------------

         Address
                ----------------------------------------------

                                      I-1
<PAGE>

                                   EXHIBIT II

                            FORM OF CASHLESS EXERCISE
                            -------------------------

To:  Delta Financial Corporation                      Dated:

         The undersigned hereby irrevocably elects a Cashless Exercise of the
         Warrant represented by the attached Warrant (Certificate No. W________)
         to purchase the shares of Common Stock issuable upon the exercise in
         accordance with Section 1B(ii) of the Warrant and requests that
         certificates for such shares be issued in the name of:

Please insert social security or other
identifying number

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

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

(Please print name and address)

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

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

         If such number of Warrants shall not be all the Warrants evidenced by
         the Warrant, a new Warrant for the balance remaining of such Warrant
         shall be registered in the name of and delivered to:

Please insert social security or other
identifying number

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

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

(Please print name and address)

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

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

         Dated:________________,___
                                     ---------------------------------------
                                     Signature
                                     (Signature must conform in all respects to
                                     name of holder as specified on the face of
                                     this Warrant Certificate)

                                      II-1
<PAGE>

                                   EXHIBIT III

                               FORM OF ASSIGNMENT
                               ------------------

FOR VALUE RECEIVED, ____________ hereby sells, assigns and transfers all of the
rights of the undersigned under the attached Warrant (Certificate No.
W-_____________) with respect to the number of shares of the Common Stock
covered thereby set forth below, unto:

Name of Assignee              Address                   No. of Shares
----------------              -------                   -------------

Dated:                                  Signature
                                                  -----------------------

                                        Witness
                                                  -----------------------

                                     III-1

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