Document:

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                                                               Exhibit 10.104(b)

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                                                                  EXECUTION COPY
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                    FIRST INVESTORS FINANCIAL SERVICES, INC.,
                                   as Seller,

                     FIRST INVESTORS SERVICING CORPORATION,
                                  as Servicer,

                    FIRST INVESTORS AUTO FUNDING CORPORATION
                                  as Depositor,

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
                              as Indenture Trustee

                                       and

                     FIRST INVESTORS AUTO OWNER TRUST 2002-A

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

                          SALE AND ALLOCATION AGREEMENT

                           Dated as of January 1, 2002

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

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                                TABLE OF CONTENTS
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                                                                                                 PAGE

<S>                                                                                                <C>
Article I Definitions...............................................................................3
  SECTION 1.1      DEFINITIONS......................................................................3
  SECTION 1.2      OTHER DEFINITIONAL PROVISIONS...................................................17
Article II Trust Property..........................................................................17
  SECTION 2.1      CONVEYANCE OF TRUST PROPERTY....................................................17
  SECTION 2.2      REPRESENTATIONS AND WARRANTIES OF THE SELLER AS TO THE CONTRACTS................20
  SECTION 2.3      REPURCHASE BY SELLER UPON BREACH................................................24
Article III Distributions; Reserve Account;........................................................24
Statements to Noteholders and Certificateholders...................................................24
  SECTION 3.1      ACCOUNTS........................................................................24
  SECTION 3.2      COLLECTIONS.....................................................................26
  SECTION 3.3      APPLICATION OF COLLECTIONS......................................................27
  SECTION 3.4      APPLICATION OF DEPOSITS.........................................................27
  SECTION 3.5      DETERMINATION DATE CALCULATIONS.................................................27
  SECTION 3.6      RESERVE ACCOUNT.................................................................31
  SECTION 3.7      STATEMENTS TO NOTEHOLDERS.......................................................33
  SECTION 3.8      CONTROL OF SECURITIES ACCOUNTS..................................................34
  SECTION 3.9      POLICY MATTERS..................................................................34
Article IV the Seller..............................................................................35
  SECTION 4.1      REPRESENTATIONS AND WARRANTIES OF THE SELLER....................................35
  SECTION 4.2      LIABILITY OF SELLER; INDEMNITIES................................................36
  SECTION 4.3      MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS OF, SELLER.........37
  SECTION 4.4      LIMITATION ON LIABILITY OF SELLER AND OTHERS....................................38
  SECTION 4.5      SELLER MAY OWN NOTES............................................................38
Article V Miscellaneous............................................................................39
  SECTION 5.1      AMENDMENT.......................................................................39
  SECTION 5.2      PROTECTION OF TITLE OF TRUST....................................................40
  SECTION 5.3      GOVERNING LAW...................................................................42
  SECTION 5.4      NOTICES.........................................................................42
  SECTION 5.5      SEVERABILITY OF PROVISIONS......................................................42
  SECTION 5.6      ASSIGNMENT......................................................................42
  SECTION 5.7      FURTHER ASSURANCES..............................................................42
  SECTION 5.8      NO WAIVER; CUMULATIVE REMEDIES..................................................43
  SECTION 5.9      THIRD-PARTY BENEFICIARIES.......................................................43
  SECTION 5.10     ACTIONS BY  NOTEHOLDERS.........................................................43
  SECTION 5.11     COUNTERPARTS....................................................................43
  SECTION 5.12     AGENT FOR SERVICE...............................................................43
  SECTION 5.13     NO BANKRUPTCY...................................................................43
  SECTION 5.14     LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE TRUSTEE..................44
  SECTION 5.15     CERTAIN RIGHTS OF THE INSURER...................................................44
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Exhibits

Exhibit A         Form of Monthly Servicer Report
Exhibit B         [Reserved]
Exhibit C         Credit and Collection Policy
Exhibit D         Offering Memorandum
Exhibit E         Form of Originator Agreement
Exhibit F         Form of Additional Contract Assignment

SCHEDULES

Schedule 1        Schedule of Initial Contracts
Schedule 2        Location of Contract Files

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     SALE AND ALLOCATION AGREEMENT, dated as of January 1, 2002 (as amended,
supplemented or otherwise modified and in effect from time to time, this
"AGREEMENT"), by and among FIRST INVESTORS AUTO OWNER TRUST 2002-A, a Delaware
business trust (the "TRUST"), FIRST INVESTORS FINANCIAL SERVICES, INC., a Texas
corporation, as seller (the "SELLER"), FIRST INVESTORS AUTO FUNDING CORPORATION,
as depositor (the "DEPOSITOR"), WELLS FARGO BANK MINNESOTA, NATIONAL
ASSOCIATION, as Indenture Trustee, and FIRST INVESTORS SERVICING CORPORATION
("FISC"), a Georgia corporation, as Servicer (together with its successors and
assigns in such capacity, the "SERVICER").

     WHEREAS, the Trust desires to purchase the Contracts purchased by the
Seller in the ordinary course of business;

     WHEREAS, the Seller is willing to sell the Contracts to the Trust as of the
date hereof; and

     WHEREAS, FISC is willing to service such Contracts on behalf of the Trust;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

     SECTION 1.1 DEFINITIONS.

     Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, whenever capitalized shall have the following
meanings:

ACCEPTABLE EXTENDED CONTRACT RATE: 3% calculated as of the three month average
Extended Contract Rate for the current Collection Period and the prior two
Collection Periods.

ADDITIONAL CONTRACT: Any Contract purchased by the Trust from the Seller during
the Prefunding Period from proceeds available in the Prefunding Account.

ADDITIONAL CONTRACT CUTOFF DATE: With respect to any Additional Contract, the
date that is two Business Days prior to the related Additional Contract Purchase
Date.

ADDITIONAL CONTRACT PURCHASE DATE: Any Business Day during the Prefunding Period
that is designated by the Seller in writing to the Indenture Trustee and the
Insurer as the date on which Additional Contracts will be purchased by the Trust
from the Seller.

ADDITIONAL CONVEYED PROPERTY: With respect to any Additional Contracts, the
proceeds, rights and other items described in SECTION 2.1(a)(ii) through (ix).

ADDITIONAL NOTE INTEREST: For any Payment Date, with respect to the Class A
Notes, the sum of (i) all accrued but unpaid Monthly Note Interest for previous
Payment Dates plus (ii) to the

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extent permitted by law, interest on such accrued but unpaid Monthly Note
Interest at the Note Rate.

ADDITIONAL PURCHASE PRICE: With respect to any Additional Contract and the
related Additional Conveyed Property, 100% of the outstanding balance of such
Additional Contract as of the related Additional Cutoff Date.

ADDITIONAL RESERVE ACCOUNT DEPOSIT:  As defined in SECTION 2.1(f)(iii).

AFFILIATE: With respect to any Person, any other Person directly or indirectly
controlling, controlled by or under direct or indirect common control with such
Person. For purposes of this definition, "control" when used with respect to any
Person shall mean the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise.

AMOUNT FINANCED: With respect to any Contract, the aggregate amount advanced to
the related Obligor under such Contract toward the purchase price of the
Financed Vehicle and any related costs.

APPLICABLE TAX STATE: As of any date of determination, (i) any state in which
the Owner Trustee maintains the Corporate Trust Office, (ii) any state in which
the Owner Trustee maintains its principal executive offices and (iii) any state
in which the Servicer regularly conducts servicing and collection activities
(other than purely ministerial activities) with respect to a material portion of
the Contracts.

APR: With respect to any Contract, the annual percentage rate of interest stated
in such Contract.

AVAILABLE FUNDS: For any Payment Date, (i) all Obligor payments received with
respect to the Contracts during the preceding Collection Period, (ii) all
Liquidation Proceeds and insurance proceeds received with respect to the
Contracts during the preceding Collection Period, (iii) all interest earned on
funds on deposit in the Collection Account, the Reserve Account and the
Prefunding Account during the preceding Collection Period, (iv) the Purchase
Amount for all Contracts that became Purchased Contracts during the preceding
Collection Period and (v) all prepayments received with respect to the Contracts
during the preceding Collection Period attributable to any refunded item
included in the Amount Financed (including amounts received as a result of
rebates of extended warranty contract costs and insurance premiums and proceeds
received under physical damage, credit life and credit disability insurance
policies); PROVIDED, HOWEVER, that Available Funds for any Payment Date shall
not include any payments or other amounts (including Liquidation Proceeds and
insurance proceeds) received with respect to any Purchased Contract the Purchase
Amount for which was included in Available Funds for a previous Payment Date.

BACK-UP SERVICER: Wells Fargo Bank Minnesota, National Association, a national
banking association, in its capacity as back-up servicer, and its successors and
assigns in such capacity.

BUSINESS DAY: Any day other than a Saturday, a Sunday or a day on which banking
institutions or trust companies in New York, New York; Wilmington, Delaware;
Houston, Texas; Minneapolis, Minnesota or Atlanta, Georgia are authorized or
obligated by law, executive order or governmental decree to remain closed.

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CAPITALIZED INTEREST AMOUNT: For the period from and including the Closing Date
to but excluding the first Payment Date, $228,291.25; for the period from and
including the first Payment Date to but excluding the second Payment Date,
$158,400.00; for the period from and including the second Payment Date to but
excluding the Prefunding Account Payout Date, $105,600.00; for the period from
and including the third Payment Date to but excluding the fourth Payment Date,
$52,800.00; provided, however, on any day on which the amount on deposit in the
Prefunding Account is zero, the Capitalized Interest Amount shall be zero.

CLASS A MONTHLY NOTE PRINCIPAL: For any Payment Date, the lesser of (i) the
Class A Note Balance as of the day preceding such Payment Date and (ii) the
amount necessary to reduce the Class A Note Balance as of the day preceding such
Payment Date to the sum of (A) 97% of the Pool Balance as of the last day of the
related Collection Period and (B) 99% of the Prefunding Account Balance as of
the last day of the related Collection Period; PROVIDED, HOWEVER, that the Class
A Monthly Note Principal for the Final Note Payment Date for the Class A Notes
shall equal the amount necessary to reduce the Class A Note Balance to zero;
provided, further, that for the purposes of determining Class A Monthly Note
Principal, the unpaid balance of any Defaulted Contract or a Purchased Contract
will be deemed zero on and after the last day of the Collection Period during
which such Contract became a Defaulted Contract or a Purchased Contract.

CLASS B MONTHLY NOTE PRINCIPAL: For any Payment Date, the lesser of (i) the
Class B Note Balance as of the day preceding such Payment Date and (ii) the
greater of (A) 0 and (B) the amount necessary to reduce the Class B Note Balance
as of the day preceding such Payment Date to the sum of (1) 3% of the Pool
Balance as of the last day of the related Collection Period and (2) 1% of the
Prefunding Account Balance as of the last day of the related Collection Period;
PROVIDED, HOWEVER, that the Class B Monthly Note Principal for the Final Note
Payment Date for the Class B Notes shall equal the amount necessary to reduce
the Class B Note Balance to zero; provided, further, that for the purposes of
determining Class B Monthly Note Principal, the unpaid balance of any Defaulted
Contract or a Purchased Contract will be deemed zero on and after the last day
of the Collection Period during which such Contract became a Defaulted Contract
or a Purchased Contract.

CLASS A NOTE BALANCE: At any time, as the context may require, (i) with respect
to all of the Class A Notes, an amount equal to, initially, the Initial Class A
Note Balance and, thereafter, an amount equal to the Initial Class A Note
Balance as reduced from time to time by all amounts allocable to principal
previously distributed to the Class A Noteholders or (ii) with respect to any
Class A Note, an amount equal to, initially, the initial denomination of such
Class A Note and, thereafter, an amount equal to such initial denomination as
reduced from time to time by all amounts allocable to principal previously
distributed in respect of such Class A Note; PROVIDED, HOWEVER, that in
determining whether the Holders of Class A Notes evidencing the requisite
percentage of the Class A Note Balance have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any other
Transaction Document, Class A Notes owned by the Trust, any other obligor upon
the Class A Notes, the Seller, the Servicer or any Affiliate of any of the
foregoing Persons shall be disregarded and deemed to be excluded from the Class
A Note Balance (unless such Persons own 100% of the Class A Note Balance),
except that, in determining whether the Indenture Trustee or the Owner Trustee
shall be protected in relying on any such request, demand, authorization,
direction, notice, consent or waiver, only Class A Notes that a Responsible
Officer of the Indenture Trustee or the Owner Trustee, as applicable, actually
knows to be so owned shall be so disregarded; and, PROVIDED

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FURTHER, that Class A Notes that, to the actual knowledge of a Responsible
Officer of the Indenture Trustee or the Owner Trustee, as applicable, have been
pledged in good faith may be regarded as included in the Class A Note Balance if
the pledgee establishes to the satisfaction of the Indenture Trustee or the
Owner Trustee, as applicable, the pledgee's right so to act with respect to such
Class A Notes and that the pledgee is not the Trust, any other obligor upon the
Class A Notes, the Seller, the Servicer or any Affiliate of any of the foregoing
Persons.

CLASS B NOTE BALANCE: At any time, as the context may require, (i) with respect
to all of the Class B Notes, an amount equal to, initially, the Initial Class B
Note Balance and, thereafter, an amount equal to the Initial Class B Note
Balance as reduced from time to time by all amounts allocable to principal
previously distributed to the Class B Noteholders or (ii) with respect to any
Class B Note, an amount equal to, initially, the initial denomination of such
Class B Note and, thereafter, an amount equal to such initial denomination as
reduced from time to time by all amounts allocable to principal previously
distributed in respect of such Class B Note.

CLASS A NOTE PAYMENT ACCOUNT: The account established and maintained as such
pursuant to SECTION 3.1(b)(i).

CLASS B NOTE PAYMENT ACCOUNT: The account established and maintained as such
pursuant to SECTION 3.1(b)(ii).

CLOSING DATE: January 29, 2002.

COLLECTION ACCOUNT: The account established and maintained as such pursuant to
SECTION 3.1(a).

COLLECTION PERIOD: Each calendar month during the term of this Agreement or, in
the case of the initial Collection Period, the period from but excluding the
Cutoff Date to and including February 28, 2002.

CONTRACT: A retail installment sale contract or promissory note and security
agreement identified on the Contract Schedule (as such contract may be amended,
supplemented or otherwise modified and in effect from time to time).

CONTRACT FILE: With respect to any Contract:

          (i) the original, executed copy of such Contract; and
          (ii) the original certificate of title for the related Financed
     Vehicle, a copy of the lien record or such other documents that the
     Servicer or the Seller shall keep on file, in accordance with its customary
     practices and procedures, and in accordance with applicable state title
     registration agency procedures evidencing the security interest of the
     Seller in such Financed Vehicle.

CONTRACT SCHEDULE: The list identifying the Contracts attached as SCHEDULE 1 to
this Agreement (which list may be in the form of microfiche or compact disk), as
such schedule may be amended from time to time.

CORPORATE TRUST OFFICE: As applicable, (i) the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this Agreement is
located at Sixth Street and Marquette Avenue, MAC

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N9311-161, Minneapolis, Minnesota 55479, Attention: Corporate Trust Services
Asset-Backed Trust Administration, or at such other address as the Indenture
Trustee may designate from time to time by notice to the Noteholders, the Owner
Trustee and the Seller, or the principal corporate trust office of any successor
Indenture Trustee at the address designated by such successor Indenture Trustee
by notice to the Noteholders, the Owner Trustee and the Seller or (ii) the
principal office of the Owner Trustee at which at any particular time its
corporate trust business shall be administered, which office at the date of the
execution of this Agreement is located at 1011 Centre Road, Suite 200,
Wilmington, DE 19805, Attention: Corporate Trust or at such other address as the
Owner Trustee may designate from time to time by notice to the Indenture Trustee
and the Seller, or the principal corporate trust office of any successor Owner
Trustee at the address designated by such successor Owner Trustee by notice to
the Indenture Trustee and the Seller.

CREDIT AND COLLECTION POLICY: The credit and collection policy of the Seller
substantially in the form attached hereto as EXHIBIT C as amended and restated
from time to time with the consent of the Insurer and in accordance with the
Transaction Documents.

CUMULATIVE NET LOSS RATE: The ratio of (i) cumulative Net Losses for the related
Collection Period and all preceding Collection Periods to (ii) the sum of (a)
the aggregate Principal Balances of all the Contracts as of the Initial Cutoff
Date and (b) the sum, for each Additional Contract Cutoff Date, of the aggregate
Principal Balances of all Contracts that became Additional Contracts on such
Additional Contract Cutoff Date.

CUSTODIAN: Wells Fargo Bank Minnesota, National Association, in its capacity as
custodian pursuant to the Indenture.

CUTOFF DATE: (i) With respect to the Initial Contracts, the Initial Cutoff Date
and (ii) with respect to any Additional Contract, the Additional Contract Cutoff
Date for such Contract.

DEFAULT:  As defined in the Indenture.

DEFAULTED CONTRACT: Any Contract as to which the first of any of the following
has occurred (i) a scheduled payment, or any portion thereof in excess of
$10.00, is more than 120 days delinquent (or if the related obligor is insolvent
or has sought protection under the United States Bankruptcy Code and such
Contract is more than 180 days delinquent), (ii) 90 days have elapsed since the
Servicer repossessed the Financed Vehicle, (iii) the related Financed Vehicle
has been repossessed and sold, or (iv) consistent with the Servicer's Credit and
Collection Policy, has been or should be written off as uncollectible.

DELINQUENT CONTRACT: The entire principal balance of any Contract (other than a
Defaulted Contract) as to which more than $10.00 of any scheduled payment
remains unpaid for more than 31 days from the date at which it is contractually
due and payable, plus the entire principal balance of any Contract granted an
extension during the Collection Period in excess of the Acceptable Extended
Contract Rate.

DELINQUENCY RATIO: With respect to any date of determination, the ratio
(expressed as a percentage) of (i) the Principal Balance of Contracts that were
Delinquent Contracts at the end of the preceding Collection Period to (ii) the
Principal Balance of all Contracts at the end of such preceding Collection
Period.

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DEPOSITOR:  As defined in the Trust Agreement.

DEPOSITOR ACCOUNT: The account established and maintained as such pursuant to
SECTION 3.1(c).

DETERMINATION DATE: The third Business Day preceding each Payment Date
commencing on March 12, 2002.

ELIGIBLE INVESTMENTS: On any date of determination, book entry securities,
negotiable instruments or securities represented by instruments in bearer or
registered form with maturities not exceeding the next Payment Date which
evidence:

          (i)   direct obligations of, and obligations fully guaranteed by, the
     United States of America or any agency or instrumentality thereof the
     obligations of which are backed by the full faith and credit of the United
     States of America;

          (ii)  demand deposits, time deposits, bankers' acceptances or
     certificates of deposit of any depository institution or trust company
     incorporated under the laws of the United States of America or any state
     thereof (or any domestic branch of a foreign bank) and subject to
     supervision and examination by federal or state banking or depository
     institution authorities, including the Indenture Trustee or the Owner
     Trustee, acting in their respective commercial capacities; PROVIDED,
     HOWEVER, that, at the time of the investment or contractual commitment to
     invest therein, such depository institution or trust company shall be rated
     Prime-1 by Moody's and A-1+ by S&P or any other deposit which is fully
     insured by the Federal Deposit Insurance Corporation;

          (iii) repurchase obligations with respect to any security that is a
     direct obligation of, or fully guaranteed by, the United States of America
     or any agency or instrumentality thereof the obligations of which are
     backed by the full faith and credit of the United States of America, in
     either case entered into with a depository institution or trust company
     (acting as principal) described in CLAUSE (ii) above;

          (iv)  short term corporate securities bearing interest or sold at a
     discount issued by any corporation incorporated under the laws of the
     United States of America or any state thereof; the short term unsecured
     obligations of which are rated Prime-1 by Moody's and A-1 by S&P at the
     time of the investment;

          (v)   commercial paper, at the time of the investment or contractual
     commitment to invest therein, rated Prime-1 by Moody's and A-1+ by S&P at
     the time of the investment;

          (vi)  guaranteed investment contracts issued by an insurance company
     or other corporation acceptable to the Rating Agencies and the Insurer
     (provided that no Insurer Default shall have occurred and be continuing);

          (vii) investments in money market funds having a rating of Aaa by
     Moody's and AAA by S&P, and

          (viii) any other investment approved in writing by the Insurer in
     advance with notice to the Rating Agencies.

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     Each of the Eligible Investments may be purchased by or through the
Indenture Trustee or an Affiliate thereof.

ELIGIBLE INSTITUTION: The corporate trust department of the Indenture Trustee or
the corporate trust department of any other depository institution organized
under the laws of the United States of America or any state thereof or the
District of Columbia or any domestic branch of a foreign bank which at all times
has either a long term unsecured debt rating of at least Baa3 from Moody's and a
long term unsecured debt rating, a short term unsecured debt rating or a
certificate of deposit rating acceptable to the Rating Agencies and the Insurer
(provided that no Insurer Default shall have occurred and be continuing) and
whose deposits are insured by the Federal Deposit Insurance Corporation.

ELIGIBLE SERVICER: First Investors Servicing Corporation, as initial Servicer,
and any other Person which, at the time of its appointment as Servicer, (i) is
approved in writing by the Insurer, (provided that no Insurer Default shall have
occurred and be continuing) (ii) has a net worth of not less than $50,000,000,
(iii) is servicing a portfolio of motor vehicle retail installment sale
contracts and/or motor vehicle loans, (iv) is legally qualified, and has the
capacity, to service the Contracts, (v) has demonstrated the ability to service
a portfolio of motor vehicle retail installment sale contracts and/or motor
vehicle loans similar to the Contracts professionally and competently in
accordance with standards of skill and care that are consistent with prudent
industry standards and (vi) is qualified and entitled to use pursuant to a
license or other written agreement, and agrees to maintain the confidentiality
of, the software which the Servicer uses in connection with performing its
duties and responsibilities under this Agreement or obtains rights to use, or
develops at its own expense, software which is adequate to perform its duties
and responsibilities under this Agreement.

EVENT OF DEFAULT:  As defined in the Indenture.

EVENT OF SERVICING TERMINATION: As defined in Section 5.1 of the Servicing
Agreement.

EXCESS PREFUNDING AMOUNT:  As defined in the Indenture.

EXTENDED CONTRACT RATE: A fraction (expressed as a percentage) calculated as of
the last day of the related Collection Period, the numerator of which is the
number of Contracts extended during the related Collection Period and the
denominator of which is the number of all Contracts.

FINAL ORDER: A final, non-appealable order of a court exercising jurisdiction in
a proceeding relating to an Insolvency Event with respect to the Seller, the
Servicer or the Depositor to the effect that all or any portion of any payment
made to the Class A Noteholders must be returned prior to the end of the Term of
the Insurance Agreement (as defined in the Insurance Agreement) as a voidable
preference under the United States Bankruptcy Code (11 U.S.C.), as amended from
time to time.

FINAL NOTE PAYMENT DATE: December 15, 2008.

FINANCED VEHICLE: A new or used automobile or light-duty truck, together with
all accessions thereto, securing an Obligor's indebtedness under a Contract.

FISC:  First Investors Servicing Corporation.

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FISCAL AGENT:  As defined in the Policy.

HOLDER:  A Noteholder.

INDENTURE: The Indenture, dated as of January 1, 2002, between the Trust, the
Indenture Trustee, and the Seller as the same may be amended, supplemented or
otherwise modified and in effect from time to time.

INDENTURE TRUSTEE: Wells Fargo Bank Minnesota, National Association, not in its
individual capacity but solely as Indenture Trustee under the Indenture, its
successors in interest and any successor trustee under the Indenture.

INITIAL CLASS A NOTE BALANCE: As the context may require, (i) with respect to
all of the Notes, $159,036,000, or (ii) with respect to any Class A Note, an
amount equal to the initial denomination of such Class A Note.

INITIAL CLASS B NOTE BALANCE: As the context may require, (i) with respect to
all of the Notes, $4,819,000, or (ii) with respect to any Class B Note, an
amount equal to the initial denomination of such Class B Note.

INITIAL CONTRACTS:  As defined in the Indenture.

INITIAL CONTRACT PRICE:  $135,643,108.96.

INITIAL CONVEYED PROPERTY: With respect to the Initial Contracts, the proceeds,
rights and other items described in SECTION 2.1(a)(ii) through (ix).

INITIAL CUTOFF DATE:  December 31, 2001.

INITIAL PREFUNDING ACCOUNT AMOUNT:  $25,000,000.

INITIAL RESERVE ACCOUNT DEPOSIT: An amount equal to the sum of (i) 2% of the
Principal Balance of the Initial Contracts as of the Initial Cutoff Date and
(ii) the Capitalized Interest Amount.

INSOLVENCY EVENT: With respect to any Person, (i) the making by such Person of a
general assignment for the benefit of creditors, (ii) the filing by such Person
of a voluntary petition in bankruptcy, (iii) such Person being adjudged bankrupt
or insolvent, or having had entered against such Person an order for relief in
any bankruptcy or insolvency proceeding, (iv) the filing by such Person of a
petition or answer seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any statute, law
or regulation, (v) the filing by such Person of an answer or other pleading
admitting or failing to contest the material allegations of a petition filed
against such Person in any proceeding specified in CLAUSE (vii) below, (vi)
seeking, consenting to or acquiescing in the appointment of a trustee, receiver
or liquidator of such Person or of all or any substantial part of the assets of
such Person or (vii) the failure to obtain dismissal within 60 days of the
commencement of any proceeding against such Person seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any statute, law or regulation, or the entry of any order
appointing a trustee, liquidator or receiver of such Person of all or any
substantial portion of the assets of such Person.

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INSURANCE AGREEMENT: The Insurance Agreement, dated as of January 1, 2002 by and
among the Seller, the Servicer, the Administrator, the Depositor, the Issuer,
the Backup Servicer, the Owner Trustee, the Insurer and the Indenture Trustee as
the same may be amended, supplemented or otherwise modified and in effect from
time to time.

INSURANCE PAYMENT AMOUNT: For any Payment Date, the premium payable under the
Insurance Agreement for that Payment Date plus any overdue premiums payable
under the Insurance Agreement for previous Payment Dates.

INSURANCE PREMIUM:  As defined in the Indenture.

INSURER: MBIA Insurance Corporation, a stock insurance corporation incorporated
under the laws of the State of New York.

INSURER DEFAULT: The failure of the Insurer to make any required payment under
the Policy or an Insolvency Event with respect to the Insurer.

LIEN: A security interest, lien, charge, pledge, equity or encumbrance of any
kind, other than tax liens, mechanics' or materialmen's liens, judicial liens
and any liens that may attach to a Financed Vehicle by operation of law.

LIQUIDATION PROCEEDS: All amounts received by the Servicer with respect to any
Defaulted Contract, net of the sum of (i) any reasonable expenses incurred by
the Servicer in connection with collection of such Contract and the disposition
of the related Financed Vehicle (to the extent determinable by the Servicer and
not previously reimbursed) PLUS (ii) any amounts required by law to be remitted
to the related Obligor.

MONTHLY NOTE INTEREST: With respect to the Class A Notes, an amount equal to (i)
for the initial Payment Date, $703,115.83 and (ii) for each Payment Date
thereafter, one-twelfth of the product of (A) the Note Rate and (B) the
outstanding principal balance of the Class A Notes as of the close of business
on the immediately preceding Payment Date (after giving effect to all payments
of principal made to the Holders of the Class A Notes on or before such Payment
Date).

MONTHLY SERVICER REPORT:  As defined in the Servicing Agreement.

MONTHLY SERVICING FEE: For any Collection Period, the fee payable to the
Servicer for services rendered during such Collection Period as determined
pursuant to Section 2.8 of the Servicing Agreement.

MOODY'S:  Moody's Investors Service, Inc., and its successors.

NET LOSSES: With respect to any Collection Period, the excess, if any, of (i)
the aggregate Principal Balance of all Contracts that became Defaulted Contracts
during such Collection Period over (ii) the aggregate Liquidation Proceeds
received by the Servicer during such Collection Period.

NOTE PAYMENT ACCOUNTS: Collectively, the Class A Note Payment Account and the
Class B Note Payment Account.

                                       11
<Page>

NOTE POOL FACTOR: With respect to the Class A Notes, (i) as of the Closing Date,
1.0000000 and (ii) as of the close of business on the last day of any Collection
Period ending after the Closing Date, a seven digit decimal figure equal to the
Class A Note Balance as of such last day (after giving effect to any reductions
of the Class A Note Balance to be made on the following Payment Date) divided by
the Initial Class A Note Balance.

NOTEHOLDER: As defined in the Indenture.

NOTE RATE: With respect to the Class A Notes, 3.46% per annum.

NOTES: As defined in the Indenture.

OBLIGOR: The purchaser or co-purchasers of a new or used automobile or
light-duty truck purchased in whole or in part by the execution and delivery of
a Contract or any other Person who owes or may be liable for payments under a
Contract.

OFFERING MEMORANDUM: That certain Offering Memorandum dated as of January 17,
2002, attached hereto as EXHIBIT D.

OFFICER'S CERTIFICATE: A certificate signed by the chairman, the president, any
executive vice president, senior vice president, vice president or the treasurer
of the Seller or the Servicer, as the case may be, and delivered to the Owner
Trustee and the Indenture Trustee.

OPINION OF COUNSEL: One or more written opinions of counsel who may, except as
otherwise expressly provided in this Agreement, be outside counsel to, the
Seller or the Servicer and who shall be acceptable to the Indenture Trustee, the
Insurer the Owner Trustee or the Rating Agencies, as applicable.

ORIGINATOR:  Each Person from whom the Seller has acquired a Contract.

ORIGINATOR AGREEMENT: An agreement substantially in the form of EXHIBIT E
hereto.

OUTSTANDING:  As defined in the Indenture.

OWNER TRUST ESTATE:  As defined in the Trust Agreement.

OWNER TRUSTEE: Bankers Trust (Delaware), not in its individual capacity but
solely as Owner Trustee under the Trust Agreement, its successors in interest
and any successor trustee under the Trust Agreement.

PAYMENT DATE: The 15th day of each month or, if such 15th day is not a Business
Day, the following Business Day, commencing on March 15, 2002.

PERSON: A legal person, including any individual, corporation, estate,
partnership, joint venture, association, joint stock company, limited liability
company, limited liability partnership, trust, unincorporated organization, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

POLICY: That certain insurance policy, dated as of January 29, 2002, issued by
MBIA Insurance Corporation in favor of the Indenture Trustee for the benefit of
the Class A Noteholders.

                                       12
<Page>

POLICY CLAIM AMOUNT:  As defined in SECTION 3.5(c).

POOL BALANCE: On any day, the aggregate Principal Balance of the Contracts
calculated as of the last day of the most recently ended Collection Period.

PREFUNDING ACCOUNT: The account established and maintained as such pursuant to
SECTION 3.7.

PREFUNDING ACCOUNT BALANCE: On any date of determination, the amount on deposit
in the Prefunding Account (including the proceeds of any Eligible Investments
therein).

PREFUNDING ACCOUNT ENDING DATE:  As defined in the Indenture.

PREFUNDING PERIOD: The period beginning on the Closing Date and ending on the
Prefunding Account Ending Date.

PRINCIPAL BALANCE: With respect to any Contract as of any date, the Amount
Financed under such Contract minus the sum of (i) that portion of all Scheduled
Payments actually received on or prior to such date allocable to principal (to
the extent collected) PLUS (ii) any rebates of extended warranty contract costs
or physical damage, credit life or credit disability insurance premiums included
in the Amount Financed PLUS (iii) any full or partial prepayment applied to
reduce the unpaid principal balance of such Contract; PROVIDED, HOWEVER, that
(A) the Principal Balance of a Defaulted Contract shall be zero as of the last
day of the Collection Period during which it became a Defaulted Contract, (B)
the Principal Balance of a Purchased Contract shall be zero as of the date on
which the related Purchase Amount is remitted by the Seller or the Servicer, and
(C) the Principal Balance of a Contract that has been foreclosed upon by the
Indenture Trustee at the direction of the Insurer pursuant to Section 5.4(a) of
the Indenture shall be zero as of the date of such foreclosure.

PRINCIPAL DEFICIT: As of any Payment Date, the excess, if any, of (i) the Class
A Note Balance as of such Payment Date (after giving effect to all distributions
of principal in reduction of the Class A Note Balance) over (ii) the sum of (a)
the Pool Balance as of the last day of the related Collection Period and (b) 99%
of the amounts on deposit in the Prefunding Account.

PURCHASE AMOUNT: With respect to any Payment Date and any Contract to be
repurchased by the Seller or purchased by the Servicer on such Payment Date, an
amount equal to the sum of (i) the Principal Balance of such Contract PLUS (ii)
the amount of accrued but unpaid interest on such Principal Balance at the
related APR to but excluding such Payment Date.

PURCHASE PRICE: (i) With respect to the Initial Contracts and the related
Initial Conveyed Property, the Initial Contract Price and (ii) with respect to
any Additional Contract and the related Additional Conveyed Property, the
Additional Purchase Price.

PURCHASED CONTRACT: A Contract as to which payment of the Purchase Amount has
been made by the Seller pursuant to SECTION 2.3 hereof or by the Servicer
pursuant to Section 2.28 of the Servicing Agreement.

PURCHASE DATE: With respect to the Initial Contracts, the Closing Date and with
respect to any Additional Contract, the applicable Additional Contract Purchase
Date.

                                       13
<Page>

RATING AGENCIES: Moody's and S&P and their respective successors; PROVIDED,
HOWEVER, that if no such organization or successor is any longer in existence,
Rating Agency shall mean a nationally recognized statistical rating organization
or other comparable Person designated by the Trust and acceptable to the Insurer
(provided that no Insurer Default shall have occurred and is continuing), notice
of which designation shall have been given to the Indenture Trustee, the Owner
Trustee and the Servicer.

RATING AGENCY CONDITION: With respect to any action, that each Rating Agency
shall have been given prior notice thereof and shall have notified the Seller,
the Insurer, the Servicer, the Owner Trustee and the Indenture Trustee that such
action will not result in a reduction or withdrawal of the then current rating
of the Notes, without regard to the Policy.

RECORD DATE: With respect to any Payment Date, the close of business on the
Business Day preceding such Payment Date; PROVIDED, HOWEVER, that if Definitive
Notes have been issued, Record Date shall mean, with respect to any Payment
Date, the last day of the calendar month preceding such Payment Date.

RELEVANT UCC: The Uniform Commercial Code as in effect from time to time in any
relevant jurisdiction.

REQUIRED PAYMENT AMOUNT: For any Payment Date, the meaning specified for such
Payment Date in SECTION 3.5(a).

REQUIRED RATING: A short term unsecured debt rating of Prime-1 by Moody's and
A-1+ by S&P.

REQUIRED RESERVE ACCOUNT AMOUNT: For the Closing Date, the Initial Reserve
Account Deposit and, thereafter, for any Payment Date, (i) if a Reserve Account
Increase Event has not occurred or is not continuing, an amount equal to the sum
of (A) 2% of the aggregate initial Principal Balance of the Contracts as of the
applicable Cutoff Date for each such Contract and (B) the applicable Capitalized
Interest Amount, or (ii) if a Reserve Account Increase Event has occurred and is
continuing, the sum of (A) the greater of (x) 2% of the aggregate initial
Principal Balance of the Contracts as of the applicable Cutoff Date for each
such Contract, and (y) 6.00% of the Pool Balance as of the last day of the
related Collection Period and (B) the applicable Capitalized Interest Amount.

RESERVE ACCOUNT: The account established and maintained as such pursuant to
SECTION 3.6(a).

RESERVE ACCOUNT AMOUNT: For any Payment Date, the amount on deposit in and
available for withdrawal from the Reserve Account on such Payment Date (after
giving effect to all deposits to and withdrawals from the Reserve Account on the
preceding Payment Date, or, in the case of the first Payment Date, the Closing
Date), including, without limitation, all interest and other income (net of
losses and investment expenses) earned on such amount during the preceding
Collection Period.

RESERVE ACCOUNT DEFICIENCY: For any Payment Date, the meaning specified for such
Payment Date in SECTION 3.5(b).

RESERVE ACCOUNT DRAW AMOUNT:  As defined in SECTION 3.5(b).

RESERVE ACCOUNT INCREASE EVENT:  The occurrence of either of the following:

                                       14
<Page>

     (i) the average Delinquency Ratio for any three Collection Periods exceeds
6% during months one through twelve after the Closing Date and the Delinquency
Ratio exceeds 7.5% thereafter; or

     (ii) the Cumulative Net Loss Rate at any month indicated in the following
table (measured as from the Closing Date), exceeds the percentage corresponding
thereto:

<Table>
<Caption>
                 Months
<S>                                     <C>
                 0-3                    0.20%
                 4-6                    1.50%
                 7-9                    2.50%
                 10-12                  3.60%
                 13-15                  4.60%
                 16-18                  5.50%
                 19-21                  6.10%
                 22-24                  6.70%
                 25-27                  7.30%
                 28-30                  7.80%
                 31-33                  8.20%
                 34-36                  8.50%
                 37-39                  8.80%
                 40-42                  9.00%
                 43 and thereafter      9.10%
</Table>

RESERVE ACCOUNT PROPERTY: All amounts, securities, investments, financial assets
and other property deposited in or credited to the Reserve Account from time to
time.

RESPONSIBLE OFFICER: (i) in the case of the Indenture Trustee, any officer
within the Corporate Trust Department of the Indenture Trustee with direct
responsibility for the administration of the Indenture and also, with respect to
a particular matter, any other officer of the Indenture Trustee to whom such
matter is referred because of such officer's knowledge of and familiarity with
such matter or other similar matters and (ii) in the case of the Owner Trustee,
any officer within the Corporate Trust Office of the Owner Trustee with direct
responsibility for the administration of the Trust Agreement or this Agreement
and also, with respect to a particular matter, any other officer of the Owner
Trustee to whom such matter is referred because of such officer's knowledge of
and familiarity with such matter or other similar matters.

SCHEDULED PAYMENT: For any Contract, each payment required to be made by the
related Obligor in accordance with the terms of such Contract (after giving
effect to any deferral of payments pursuant to the Servicing Agreement or any
rescheduling of payments as a result of any Insolvency Event with respect to
such Obligor).

SELLER: First Investors Financial Services, Inc., a Texas corporation, in its
capacity as seller of the Contracts under this Agreement, and its successors and
assigns in such capacity.

SERVICER: FISC, in its capacity as servicer of the Contracts under this
Agreement, and its successors and assigns (including, if applicable, the Back-Up
Servicer) in such capacity.

                                       15
<Page>

SERVICING AGREEMENT: That certain Servicing Agreement, dated as of January 1,
2002, between FISC, the Back-Up Servicer, the Indenture Trustee, the Servicer
and the Trust.

SERVICING FEE: The amount paid to the Servicer on each Payment Date for the
preceding Collection Period equal to the product of one-twelfth (or in the case
of the initial Collection Period, one-sixth) of the Servicing Rate multiplied by
the Pool Balance as of the close of business on the first day of the related
Collection Period.

SERVICING OFFICER: Any officer of the Servicer involved in, or responsible for,
the administration and servicing of the Contracts whose name appears on a list
of servicing officers attached to an Officer's Certificate furnished on the
Closing Date to the Owner Trustee and the Indenture Trustee by the Servicer, as
such list may be amended from time to time by the Servicer in writing.

SERVICING RATE: 2.5% per annum or such other rate as determined in the Servicing
Agreement; PROVIDED, HOWEVER, that if the Back-Up Servicer becomes the Successor
Servicer, the Servicing Rate shall be equal to the greater of (i) 2.5% per annum
and (ii) the lowest of three bids obtained by the Back-Up Servicer from
third-party servicers, who are qualified to act as servicers, selected by the
Back-Up Servicer and approved by the Insurer.

S & P: Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc., and its successors.

TOTAL AVAILABLE FUNDS: For any Payment Date, the sum of (i) the Available Funds
for such Payment Date PLUS (ii) the Reserve Account Draw Amount, if any, for
such Payment Date.

TOTAL NOTE INTEREST: For any Payment Date with respect to the Class A Notes, the
sum of (i) the Monthly Note Interest for such Payment Date PLUS (ii) the
Additional Note Interest for such Payment Date.

TOTAL SERVICING FEE: For any Collection Period, the sum of (i) the Monthly
Servicing Fee for such Collection Period PLUS (ii) all accrued but unpaid
Monthly Servicing Fees for previous Collection Periods.

TRANSACTION DOCUMENTS: As defined in the Indenture.

TRUST: The First Investors Auto Owner Trust 2002-A, a Delaware business trust.

TRUST AGREEMENT: The Amended and Restated Trust Agreement, dated as of January
29, 2002, between the Depositor and the Owner Trustee, as the same may be
further amended, supplemented or otherwise modified and in effect from time to
time.

TRUST OFFICER: (i) in the case of the Indenture Trustee, any officer within the
Corporate Trust Department of the Indenture Trustee with direct responsibility
for the administration of the Indenture and also, with respect to a particular
matter, any other officer of the Indenture Trustee to whom such matter is
referred because of such officer's knowledge of and familiarity with such matter
or other similar matters and (ii) in the case of the Owner Trustee, any officer
within the Corporate Trust Office of the Owner Trustee with direct
responsibility for the administration of the Trust Agreement and this Agreement
and also, with respect to a particular matter, any other

                                       16
<Page>

officer of the Owner Trustee to whom such matter is referred because of such
officer's knowledge of and familiarity with such matter or other similar
matters.

TRUST PROPERTY: As of any date of determination, (i) the Contracts and other
related property sold, transferred, assigned and otherwise conveyed by the
Seller to the Trust pursuant to SECTION 2.1(b), and (ii) all monies deposited
from time to time in the Collection Account, the Prefunding Account, the Class A
Note Payment Amount, the Class B Note Payment Account, the Depositor Account and
the Reserve Account.

     SECTION 1.2 OTHER DEFINITIONAL PROVISIONS.

     (a) Capitalized terms used herein and not otherwise defined herein have the
meanings assigned to them in the Indenture or the Servicing Agreement.

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

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

     (d) The words "hereof," "herein," and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. Article, Section, Schedule
and Exhibit references contained in this Agreement are references to Articles,
Sections, Schedules and Exhibits in or to this Agreement unless otherwise
specified. The term "including" shall mean "including without limitation."

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

     (f) Any agreement, instrument or statute defined or referred to herein or
in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein. References to a
Person are also to its permitted successors and assigns.

                                   ARTICLE II

                                 TRUST PROPERTY

     SECTION 2.1 CONVEYANCE OF TRUST PROPERTY.

                                       17
<Page>

     (a) Subject to SECTION 2.1(B), in consideration of the Trust's delivery to
the Seller of the Purchase Price, the Seller hereby agrees to sell, transfer,
assign and otherwise convey to the Trust, without recourse (subject to the
obligations herein), all right, title and interest of the Seller, whether now
owned or hereafter acquired, in, to and under the following:

          (i)    the Contracts;

          (ii)   all amounts received on or in respect of the Contracts after
     the applicable Cutoff Date (except that interest accrued on the Contracts
     prior to the applicable Cutoff Date and received after such Cutoff Date
     will be remitted by the Trust to the Seller);

          (iii)  the Collection Account, the Reserve Account, the Prefunding
     Account, the Class A Note Payment Account and the Class B Note Payment
     Account and all amounts, securities, financial assets, investments and
     other property deposited in or credited to any of the foregoing and all
     proceeds thereof;

          (iv)   the security interests in the Financed Vehicles;

          (v)    any proceeds from claims on or refunds of premiums with respect
     to extended warranties or physical damage, theft, credit life and credit
     disability insurance policies relating to the Financed Vehicles or the
     related Obligors;

          (vi)   any Liquidation Proceeds;

          (vii)  the Contract Files;

          (viii) rights under the Servicing Agreement to cause the Servicer to
     purchase Contracts affected materially and adversely by breaches of the
     representations and warranties of the Servicer made in the Servicing
     Agreement; and

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

     (b) On the Closing Date, subject to the terms and conditions of this
Agreement, in consideration of the Trust's delivery of the Initial Contract
Price, the Seller hereby irrevocably sells, transfers, assigns and otherwise
conveys to the Trust and the Trust hereby purchases from the Seller the Initial
Contracts and the Initial Conveyed Property. On each Additional Contract
Purchase Date subject to the terms and conditions of this Agreement, in
consideration of the Trust's delivery of the Additional Purchase Price, the
Seller will transfer, assign and otherwise convey and the Trust will purchase
from the Seller such Additional Contracts and Additional Conveyed Property as
the Seller may specify by written notice to the Indenture Trustee, the Owner
Trustee and the Trust.

                                       18
<Page>

     (c) The Seller and the Trust intend that each transfer of Trust Property
contemplated by SECTION 2.1(b) constitutes a sale of the Trust Property,
conveying good title to the related Trust Property, from the Seller to the
Trust. In addition, without prejudicing the parties' intent that each transfer
of the Trust Property constitutes a sale, in case that any or all of such
transfers is deemed by a court of competent jurisdiction to be a pledge to
secure the payment of the Notes, or for any other reason the Trust is not the
owner thereof the Seller hereby grants to the Trust a "security interest" in all
of the Seller's right, title and interest in, to and under the Trust Property,
and all proceeds thereof, to secure the payment of the Notes. In either event,
it is understood by the parties hereto that each transfer of the Trust Property
shall constitute the grant of a "security interest" in favor of the Trust under
the Relevant UCC, it being understood that "security interest" under the
Relevant UCC includes any interest of a buyer of "accounts" or "chattel paper".

     (d) The sale, transfer, assignment and conveyance of the Trust Property
made under SECTION 2.1(b) shall not constitute and is not intended to result in
an assumption by the Trust of any obligation of the Seller to the Obligors or
any other Person in connection with the Contracts and the other Trust Property
or any agreement, document or instrument related thereto.

     (e) Upon each of the transfers of the Trust Property pursuant to CLAUSE (b)
of this SECTION 2.1, the Seller shall clearly mark its files, documents, books
and any other records (including computer records) in the Seller's control
pertaining to the Trust Property, in order to indicate that the Trust Property
has been transferred to the Trust.

     (f) The Trust's obligation to purchase Additional Contracts and Additional
Conveyed Property pursuant to CLAUSE (b) of this SECTION 2.1 is subject to
satisfaction on or before the related Additional Contract Purchase Date of the
following conditions precedent:

          (i)   each of the representations and warranties of the Seller made
     pursuant to SECTION 2.2 with respect to the Additional Contracts shall be
     true and correct as of the Additional Contract Purchase Date;

          (ii)  the Seller shall have executed and delivered to the Trust and
     the Trust shall have executed and delivered to the Indenture Trustee,
     written assignments in the form of EXHIBIT F hereto conveying such
     Additional Contracts and Additional Conveyed Property to the Trust and the
     Indenture Trustee, respectively;

          (iii) the Issuer shall have deposited, or cause to be deposited, in
     the Reserve Account, an amount equal to 2% of the aggregate outstanding
     principal balance of Additional Contracts to be conveyed on such Additional
     Contract Purchase Date (the "ADDITIONAL RESERVE ACCOUNT DEPOSIT");

          (iv)  the Seller shall have delivered file-stamped copies (or other
     evidence of filing) of UCC-1 financing statements for each jurisdiction in
     which required by applicable law, executed by the Seller, as seller or
     debtor, and naming the Trust, as purchaser or secured party and describing
     as collateral the Additional Conveyed Property then being transferred,
     which financing statements meet the requirements of the laws of each such
     jurisdiction and in such manner as is necessary to perfect the sale,
     transfer, assignment and conveyance of such Conveyed Property to the Trust;

                                       19
<Page>

          (v)   estoppel and release letters and related UCC-3 termination
     statements and/or amendment statements (for each appropriate jurisdiction),
     to release all security interests or similar rights of any Person in the
     Additional Conveyed Property, including the security interests in the
     Financed Vehicles securing the Contracts and any proceeds of the foregoing;

          (vi)  evidence that all filings (including all UCC filings) required
     to be made by any Person and actions required to be taken or performed by
     any Person in any jurisdiction to give the Trust a first priority Lien on,
     or ownership interest in, the Additional Conveyed Property to be conveyed
     on such date have been made, taken and performed;

          (vii) the Trust shall have received the prior written consent of the
     Insurer; and

          (viii) such other documents as the Trust or the Insurer may reasonably
     request.

     (g) It is explicitly agreed by the Seller, the Depositor and the Trust that
the Purchase Price delivered to the Seller by the Trust pursuant to CLAUSE (b)
of this SECTION 2.1 shall consist of the net proceeds from the sale of the Notes
(minus the sum of the Initial Reserve Account Deposit and the Additional Reserve
Account Deposits) and that the remaining portion of the Purchase Price shall be
deemed to constitute a capital contribution by the Seller to the Depositor (it
being understood that the Seller has a 100% ownership interest in the Depositor
and that the Depositor has a 100% ownership interest in the Trust).

     SECTION 2.2 REPRESENTATIONS AND WARRANTIES OF THE SELLER AS TO THE
CONTRACTS.

     The Seller makes the following representations and warranties as to the
Contracts on which the Trust shall be deemed to have relied in accepting the
Contracts. The representations and warranties speak as of the execution and
delivery of this Agreement and, with respect to any Additional Contracts, as of
the related Additional Contract Purchase Date, except to the extent otherwise
provided, but shall survive the sale, transfer, assignment and conveyance of the
Contracts to the Trust pursuant to this Agreement and the pledge of the
Contracts to the Indenture Trustee pursuant to the Indenture.

     (a) CHARACTERISTICS OF CONTRACTS. Each Contract (i) has been purchased in a
bona fide sale by the Seller from a dealer, bank, finance company or similar
entity in the ordinary course of the Seller's business and was originated by
such Person in connection with an advance made for the sale or re-financing of a
new or used automobile or light-duty truck and has been fully and properly
executed by the parties thereto, (ii) has created a valid, binding and
enforceable security interest in favor of the Seller in the related Financed
Vehicle, which security interest has been validly assigned by the Seller to the
Trust, and by the Trust to the Indenture Trustee, (iii) contains customary and
enforceable provisions such that the rights and remedies of the holder thereof
are adequate for realization against the collateral of the benefits of the
security, (iv) provides for level monthly payments that fully amortize the
Amount Financed by maturity (except that the period between the date of such
Contract and the date of the first Scheduled Payment may be less than or greater
than one month and the amount of the first and last Scheduled Payments may be
less than or greater than the level payments) and yield interest at the related
APR, (v) provides for, in the event that such Contract is prepaid, a prepayment
that fully pays the Principal Balance of such Contract with interest at the
related APR through the date of

                                       20
<Page>

payment, (vi) is secured by a new or used automobile or light-duty truck, (vii)
relates to an Obligor who has made a down payment under such Contract as of the
applicable Cutoff Date, (viii) satisfies in all material respects the
requirements under the Credit and Collection Policy, and (ix) requires the
Obligor thereunder to obtain and maintain physical damage insurance covering the
related Financed Vehicle in accordance with the Seller's normal requirements.

     (b) CONTRACT SCHEDULE. The information set forth in the Contract Schedule
was true and correct in all material respects as of the opening of business on
the applicable Cutoff Date, and no selection procedures believed to be adverse
to the Trust or the Noteholders were utilized in selecting the Contracts from
those retail installment sale contracts or security agreements and promissory
notes which met the criteria contained herein. The information set forth in the
compact disk or other listing regarding the Contracts made available to the
Trust and its assigns (which compact disk or other listing is required to be
delivered as specified herein) is true and correct in all material respects.

     (c) COMPLIANCE WITH LAW. Each Contract and the sale of the related Financed
Vehicle complied, at the time such Contract was originated and complies, as of
the related Purchase Date, in all material respects with all requirements of
applicable federal, state and local laws, and regulations thereunder, including,
without limitation, usury laws, the Federal Truth-in-Lending Act, the Equal
Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Credit Billing
Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act,
the Magnuson-Moss Warranty Act, the Federal Reserve Board's Regulations B, M and
Z, the Soldiers' and Sailors' Civil Relief Act of 1940 and state adaptations of
the Uniform Consumer Credit Code.

     (d) BINDING OBLIGATION. Each Contract represents the genuine, legal, valid
and binding payment obligation in writing of the related Obligor, enforceable by
the holder thereof in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally and by general
principles of equity.

     (e) NO GOVERNMENT OR INCORPORATED OBLIGOR. No Contract is due from the
United States of America or any state thereof or from any agency, department or
instrumentality of the United States of America or any state thereof or from any
incorporated entity.

     (f) SECURITY INTEREST IN FINANCED VEHICLES. Immediately prior to the
transfer of the Contracts by the Seller to the Trust, each Contract was secured
by a valid, binding and enforceable first priority perfected security interest
in favor of the Seller in the related Financed Vehicle and, at such time as
enforcement of such security interest is sought, there shall exist a valid,
binding and enforceable first priority perfected security interest in such
Financed Vehicle for the benefit of the Seller and the Trust, respectively,
which is subject to regulatory registration with a clear legal right of
repossession in favor of the Seller and the Trust.

     (g) CONTRACTS IN FORCE. No Contract has been satisfied, subordinated or
rescinded, nor has any Financed Vehicle been released in whole or in part from
the Lien granted by the related Contract.

     (h) NO WAIVER. No provision of a Contract has been waived in such a manner
that such Contract fails to meet all of the representations and warranties made
by the Seller in this

                                       21
<Page>

SECTION 2.2 with respect thereto and no provision of any Contract has been
waived except as noted in the Contract Files.

     (i) NO DEFENSES. No Contract is subject to any right of rescission, setoff,
counterclaim or defense, including the defense of usury, and the operation of
any of the terms of any Contract, or the exercise of any right thereunder, will
not render such Contract unenforceable in whole or in part or subject to any
right of rescission, setoff, counterclaim or defense, including the defense of
usury, and the Seller has not received written notice of the assertion of any
such right of rescission, setoff, counterclaim or defense asserted with respect
thereto.

     (j) NO LIENS. No liens or claims exist or have been filed for work, labor
or materials or unpaid state or federal taxes relating to any Financed Vehicle
that are prior to, or equal or coordinate with, the security interest in such
Financed Vehicle created by the related Contract.

     (k) NO DEFAULT; REPOSSESSION. No default, breach, violation or event
permitting acceleration under the terms of any Contract has occurred (other than
payments that are not more than 30 days past due), no continuing condition that
with notice or the lapse of time or both would constitute a default, breach,
violation or event permitting acceleration under the terms of any Contract has
arisen and no Financed Vehicle has been repossessed as of the applicable Cutoff
Date.

     (l) TITLE. The Seller intends that the transfer of the Contracts
contemplated by SECTION 2.1(b) constitute a sale of the Contracts from the
Seller to the Trust and that the beneficial interest in, and title to, the
Contracts not be part of the Seller's estate in the event of the filing of a
bankruptcy petition by or against the Seller under any bankruptcy law. The
Seller has not sold, transferred, assigned or pledged any Contract to any Person
other than the Trust and such Contract has not been released. Immediately prior
to the transfer of the Contracts contemplated by SECTION 2.1(b), the Seller had
good and marketable title to the Contracts free and clear of all Liens,
encumbrances, security interests and rights of others and, immediately upon such
transfer, the Trust shall have good and marketable title to the Contracts, free
and clear of all Liens, encumbrances, security interests and rights of others.
The transfer of the Contracts contemplated by SECTION 2.1(b) has been perfected
by all necessary action under the Relevant UCC.

     (m) VALID ASSIGNMENT. No Contract has been originated in, or is subject to
the laws of, any jurisdiction under which the sale, transfer, assignment and
conveyance of such Contract under this Agreement or the pledge of such Contract
under the Indenture is unlawful, void or voidable. No Contract is subject to any
agreement with any account debtor that prohibits, restricts or conditions the
assignment of the Contracts.

     (n) ALL FILINGS MADE. All filings (including, without limitation, filings
under the Relevant UCC) necessary in any jurisdiction to give the Trust a first
priority perfected security interest in the Contracts and to give the Indenture
Trustee a first priority perfected security interest in the Contracts have been
made or will be made on or prior to the related Purchase Date.

     (o) CHATTEL PAPER. Each Contract constitutes "chattel paper" as defined in
the Relevant UCC.

     (p) ONE ORIGINAL. There is only one original executed copy of each
Contract.

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     (q) PRINCIPAL BALANCE. Each Contract had a Principal Balance as of the
Cutoff Date of not more than $40,000.

     (r) NO BANKRUPT OBLIGORS. As of the applicable Cutoff Date, no Contract was
due from an Obligor that was the subject of a proceeding under the Bankruptcy
Code of the United States or was bankrupt.

     (s) TERM TO MATURITY. Each Contract had an original term to maturity of not
more than 66 months; provided, however that as of the Prefunding Account Ending
Date, no more than 19% of the Pool Balance shall represent Contracts with an
original term to maturity greater than 60 months and less than or equal to 66
months.

     (t) ANNUAL PERCENTAGE RATE. Each Contract has an APR of at least 4.00%;
provided, however that as of the Prefunding Account Ending Date, the weighted
average APR of all Contracts shall not be less than 17.74%.

     (u) LOCATION OF CONTRACT FILES. The Contract Files have been delivered to
the Custodian prior to the applicable Purchase Date and are maintained at the
location listed in SCHEDULE 2 to this Agreement.

     (v) NO DELINQUENT CONTRACTS. As of the applicable Cutoff Date, no Contract
was a Delinquent Contract or a Defaulted Contract.

     (w) OFFERING MEMORANDUM DATA. The tabular and numerical data contained in
the Offering Memorandum relating to the characteristics of the Contracts is true
and correct in all material respects.

     (x) NO DEFAULTS. No Contract is due from an Obligor that has previously
defaulted on a retail installment sales contract or promissory note and security
agreement purchased by the Seller.

     (y) FINAL SCHEDULED PAYMENT DATE. The original final scheduled payment date
for each Contract is on or before November 30, 2007.

     (z) ORIGINATOR AGREEMENT. Each Contract is subject to an Originator
Agreement with the Seller and which if acquired by the Seller pursuant to a
"bulk purchase" from another Originator has been approved by the Insurer.

     (aa) LOCKBOX. The Obligor with respect to each contract has been instructed
to make payments under the Contract to a Lockbox which is under the control of
the Servicer.

     (bb) UNITED STATES OBLIGOR. Each Contract is due from an Obligor which has
provided as its most recent billing address an address located in the United
States of America.

     (cc) U.S. DOLLARS. Each Contract is payable in the lawful money of the
United States of America.

     (dd) NO WAIVER OR MODIFICATION. No Contract has been waived or modified as
of the applicable Cutoff Date except as permitted by the Servicing Agreement.

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     (ee) SCHEDULED PAYMENTS. Each Initial Contract relates to an Obligor who
has made at least one Scheduled Payment; PROVIDED, that the Additional Contracts
and $5,000,000 of the initial aggregate Principal Balance of the Initial
Contracts are exempt from this requirement.

     SECTION 2.3 REPURCHASE BY SELLER UPON BREACH.

     The Seller, the Insurer, the Depositor, the Servicer or the Trust, as the
case may be, shall inform the other parties to this Agreement and the Indenture
Trustee promptly, in writing, upon the discovery of any breach or failure to be
true of the representations and warranties made by the Seller pursuant to
SECTION 2.2. If such breach or failure shall not have been cured by the close of
business on the last day of the Collection Period which includes the thirtieth
(30th) day after the date on which the Seller becomes aware of, or receives
written notice from the Servicer, the Depositor, the Insurer or the Trust of,
such breach or failure, and such breach or failure materially and adversely
affects the interest of the Trust in a Contract, the Seller shall repurchase
such Contract from the Trust on the Business Day next preceding the Payment Date
immediately following such Collection Period. In consideration of the repurchase
of a Contract hereunder, the Seller shall remit the Purchase Amount of such
Contract in the manner specified in SECTION 3.4. The sole remedy of the Trust,
the Owner Trustee, the Indenture Trustee and the Noteholders with respect to a
breach or failure to be true of the representations and warranties made by the
Seller pursuant to SECTION 2.2 shall be to require the Seller to repurchase
Contracts pursuant to this SECTION 2.3. Neither the Owner Trustee nor the
Indenture Trustee shall have any duty to conduct an affirmative investigation as
to the occurrence of any condition requiring the repurchase of any Contract
pursuant to this SECTION 2.3 or the eligibility of any Contract for purposes of
this Agreement.

                                   ARTICLE III

                         DISTRIBUTIONS; RESERVE ACCOUNT;
                STATEMENTS TO NOTEHOLDERS AND CERTIFICATEHOLDERS

     SECTION 3.1 ACCOUNTS.

     (a) The Servicer shall establish, on or before the Closing Date, and
maintain in the name of the Indenture Trustee at an Eligible Institution (which
shall initially be the Indenture Trustee) a segregated trust account designated
as the Collection Account (the "COLLECTION ACCOUNT"). The Collection Account
shall be held in trust for the benefit of the Insurer and the Noteholders. The
Collection Account shall be under the sole dominion and control of the Indenture
Trustee; PROVIDED, HOWEVER, that the Servicer may make deposits to and direct
the Indenture Trustee in writing to make withdrawals from the Collection Account
in accordance with this Agreement and the Indenture. All monies deposited from
time to time in the Collection Account pursuant to this Agreement shall be held
by the Indenture Trustee as part of the Trust Property and shall be applied as
provided in this Agreement. All deposits to and withdrawals from the Collection
Account shall be made only upon the terms and conditions of the Transaction
Documents.

     If the Servicer is required to remit collections within two Business Days
pursuant to the first sentence of SECTION 3.2, all amounts held in the
Collection Account shall, to the extent permitted by applicable law, rules and
regulations, be invested, as directed in writing by the Servicer, by the bank or
trust company then maintaining the Collection Account in Eligible

                                       24
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Investments that mature not later than the Business Day preceding the Payment
Date following the Collection Period to which such amounts relate. All such
Eligible Investments shall be held to maturity. If the Collection Account is no
longer to be maintained at the Indenture Trustee, the Servicer shall, with the
Indenture Trustee's assistance as necessary, cause the Collection Account to be
moved to an Eligible Institution within ten (10) Business Days (or such longer
period not to exceed thirty (30) calendar days as to which each Rating Agency
and the Insurer (provided that no Insurer Default shall have occurred and is
continuing) may consent). The Servicer shall promptly notify the Indenture
Trustee, the Insurer (provided that no Insurer Default shall have occurred and
is continuing) and the Owner Trustee of any change in the account number or
location of the Collection Account.

     (b) The Servicer shall establish, on or before the Closing Date, and
maintain in the name of the Indenture Trustee at an Eligible Institution (which
shall initially be the Indenture Trustee) the following note payment accounts:

          (i) a segregated trust account designated as the Class A Note Payment
     Account (the "CLASS A NOTE PAYMENT ACCOUNT"). The Class A Note Payment
     Account shall be held in trust for the benefit of the Class A Noteholders
     and the Insurer. The Class A Note Payment Account shall be under the sole
     dominion and control of the Indenture Trustee; PROVIDED, HOWEVER, that the
     Servicer may make deposits to and direct the Indenture Trustee in writing
     to make withdrawals from the Class A Note Payment Account in accordance
     with this Agreement and the Indenture. All monies deposited from time to
     time in the Class A Note Payment Account pursuant to this Agreement and the
     Indenture shall be held by the Indenture Trustee as part of the Trust
     Property and shall be applied as provided in this Agreement and the
     Indenture. The amounts on deposit in the Class A Note Payment Account shall
     not be invested. If the Class A Note Payment Account is no longer to be
     maintained at the Indenture Trustee, the Servicer shall, with the Indenture
     Trustee's assistance as necessary, cause the Class A Note Payment Account
     to be moved to an Eligible Institution within ten (10) Business Days (or
     such longer period not to exceed thirty (30) calendar days as to which each
     Rating Agency and the Insurer (provided that no Insurer Default shall have
     occurred and is continuing) may consent). The Servicer shall promptly
     notify the Indenture Trustee, the Insurer and the Owner Trustee of any
     change in the account number or location of the Class A Note Payment
     Account; and

          (ii) a segregated trust account designated as the Class B Note Payment
     Account (the "CLASS B NOTE PAYMENT ACCOUNT"). The Class B Note Payment
     Account shall be held in trust for the benefit of the Class B Noteholders.
     The Class B Note Payment Account shall be under the sole dominion and
     control of the Indenture Trustee; PROVIDED, HOWEVER, that the Servicer may
     make deposits to and direct the Indenture Trustee in writing to make
     withdrawals from the Class B Note Payment Account in accordance with this
     Agreement and the Indenture. All monies deposited from time to time in the
     Class B Note Payment Account pursuant to this Agreement and the Indenture
     shall be held by the Indenture Trustee as part of the Trust Property and
     shall be applied as provided in this Agreement and the Indenture. The
     amounts on deposit in the Class B Note Payment Account shall not be
     invested. If the Class B Note Payment Account is no longer to be maintained
     at the Indenture Trustee, the Servicer shall, with the Indenture Trustee's
     assistance as necessary, cause the Class B Note Payment Account to be moved
     to an Eligible Institution within ten (10) Business Days (or such longer
     period not to

                                       25
<Page>

     exceed thirty (30) calendar days as to which each Rating Agency and the
     Insurer (provided that no Insurer Default shall have occurred and is
     continuing) may consent). The Servicer shall promptly notify the Indenture
     Trustee, the Insurer and the Owner Trustee of any change in the account
     number or location of the Class B Note Payment Account.

     (c) The Servicer shall establish, on or before the Closing Date, and
maintain in the name of the Trust at an Eligible Institution (which shall
initially be the Owner Trustee) a segregated trust account designated as the
Depositor Account (the "DEPOSITOR ACCOUNT"). The Depositor Account shall be held
in trust for the benefit of the Depositor. The Depositor Account shall be under
the sole dominion and control of the Trust; PROVIDED, HOWEVER, that the Servicer
may direct the Indenture Trustee in writing to make deposits to the Depositor
Account in accordance with this Agreement and the Indenture and may direct the
Owner Trustee in writing to make withdrawals from the Depositor Account in
accordance with this Agreement and the Trust Agreement. All monies deposited
from time to time in the Depositor Account pursuant to this Agreement and the
Indenture shall be held by the Trust as part of the Trust Property and shall be
applied as provided in this Agreement and the Trust Agreement. The amounts on
deposit in the Depositor Account shall not be invested. If the Depositor Account
is no longer to be maintained at the Owner Trustee, the Servicer shall, with the
Owner Trustee's assistance as necessary, cause the Depositor Account to be moved
to an Eligible Institution within ten (10) Business Days (or such longer period
not to exceed thirty (30) calendar days as to which each Rating Agency and the
Insurer (provided that no Insurer Default shall have occurred and is continuing)
may consent). The Servicer shall promptly notify the Indenture Trustee, the
Insurer (provided that no Insurer Default shall have occurred and is continuing)
and the Owner Trustee of any change in the account number or location of the
Depositor Account.

     SECTION 3.2 COLLECTIONS.

     The Servicer shall remit to the Collection Account all amounts received by
the Servicer on or in respect of the Contracts (excluding payments with respect
to Purchased Contracts) as soon as practicable and in no event after the close
of business on the second Business Day after such receipt; PROVIDED, HOWEVER,
that for so long as (a) FISC is the Servicer, (b) no Event of Servicing
Termination shall have occurred and be continuing and (c) (i) the short term
unsecured debt of FISC (for so long as it is Servicer) shall be rated at least
Prime-1 by Moody's and at least A-1 by S&P or (ii) the Rating Agency Condition
shall have been satisfied and the written consent of the Insurer shall have been
obtained (each, a "MONTHLY REMITTANCE CONDITION"), the Servicer may remit any
such amounts received during any Collection Period to the Collection Account in
immediately available funds on the Business Day preceding the Payment Date
following such Collection Period. The Owner Trustee and the Indenture Trustee
shall not be deemed to have knowledge of any event or circumstance under CLAUSE
(ii) or (iii) of the definition of Monthly Remittance Condition that would
require daily remittance by the Servicer to the Collection Account (and shall be
entitled to presume and be fully protected in presuming that no such event or
circumstance has occurred or exists) unless the Owner Trustee or the Indenture
Trustee, as applicable, has received written notice of such event or
circumstance from the Seller or the Servicer in an Officer's Certificate or
written notice from the Insurer (if no Insurer Default shall have occurred and
be continuing), the Holders of Notes evidencing not less than 25% of the Class A
Note Balance or a Responsible Officer of the Owner Trustee or the Indenture
Trustee, as applicable, has actual knowledge of such event or circumstance.

                                       26
<Page>

     SECTION 3.3 APPLICATION OF COLLECTIONS.

     For purposes of this Agreement, all amounts received on or in respect of a
Contract during any Collection Period (excluding payments with respect to
Purchased Contracts) shall be applied by the Servicer, on the date received, to
interest and principal on such Contract in accordance with the terms of such
Contract.

     SECTION 3.4 APPLICATION OF DEPOSITS.

     The Seller and the Servicer shall deposit or cause to be deposited in the
Collection Account the aggregate Purchase Amount with respect to Purchased
Contracts pursuant to SECTION 2.3 hereof. All such deposits with respect to a
Collection Period shall be made in immediately available funds no later than
5:00 p.m., New York City time, on the Business Day preceding the Payment Date
following such Collection Period.

     SECTION 3.5 DETERMINATION DATE CALCULATIONS.

     (a) On each Determination Date, the Servicer shall calculate the following
amounts:

          (i)   the Available Funds for the following Payment Date;

          (ii)  the Total Servicing Fee for the preceding Collection Period;

          (iii) the Total Note Interest for the following Payment Date;

          (iv)  the Class A Monthly Note Principal for the following Payment
     Date;

          (v)   the Insurance Premium for the following Payment Date plus any
     overdue Insurance Premiums for previous Payment Dates;

          (vi)  the aggregate amount of any unreimbursed payments under the
     Policy to the extent payable to the Insurer under the Insurance Agreement
     PLUS accrued interest on any unreimbursed payments under the Policy at the
     rate provided in the Insurance Agreement PLUS any other amounts due the
     Insurer under the Insurance Agreement and the Policy;

          (vii) the sum of the amounts described in CLAUSES (ii), (iii) and (iv)
     above (the "REQUIRED PAYMENT AMOUNT");

          (viii) the sum of the amounts described in CLAUSES (v) and (vi) above
     (the "INSURANCE PAYMENT AMOUNT");

          (ix)  the Class B Monthly Note Principal for the following Payment
     Date; and

          (x)   any unpaid or unreimbursed fees and expenses (including but not
     limited to, attorneys' fees and transition expenses) due to the Back-Up
     Servicer, the Indenture Trustee and the Owner Trustee.

     (b) On each Determination Date, the Servicer shall calculate the following
amounts:

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<Page>

          (i)   the lesser of (A) the amount, if any, by which the sum of the
     Required Payment Amount (for purposes of this subsection (b)(i)(A), the
     Required Payment Amount shall be calculated assuming that the Class A
     Monthly Note Principal is equal to the amount by which the Class A Note
     Balance as of the related Determination Date exceeds the sum of the Pool
     Balance for such Determination Date and 99% of the amount on deposit in the
     Prefunding Account on the last day of the related Collection Period) PLUS
     the Insurance Payment Amount for the following Payment Date exceeds
     the Available Funds for such Payment Date and (B) the Reserve Account
     Amount for such Payment Date (before giving effect to any deposits to or
     withdrawals from the Reserve Account on such Payment Date) (such lesser
     amount, the "RESERVE ACCOUNT DRAW AMOUNT");

          (ii)  the Policy Claim Amount;

          (iii) the Reserve Account Amount for the following Payment Date (after
     giving effect to the withdrawal of the Reserve Account Draw Amount for such
     Payment Date); and

          (iv)  the amount, if any, by which the Required Reserve Account Amount
     for the following Payment Date exceeds the Reserve Account Amount for such
     Payment Date (after giving effect to the withdrawal of the Reserve Account
     Draw Amount for such Payment Date) (such excess, the "RESERVE ACCOUNT
     DEFICIENCY").

     On each Payment Date, the Servicer shall instruct the Indenture Trustee to
withdraw, and the Indenture Trustee upon receipt of such instructions shall
withdraw, the Reserve Account Draw Amount, if any, for such Payment Date from
the Reserve Account and apply such amount in accordance with PARAGRAPH (e) of
this SECTION 3.5.

     (c) If the Servicer determines on any Determination Date that the Available
Funds for the following Payment Date PLUS the Reserve Account Draw Amount
(excluding that portion attributable to CLAUSE (ii) of SECTION 3.5(a)) for such
Payment Date will be insufficient to pay in full the Required Payment Amount
(excluding that portion attributable to CLAUSE (ii) of SECTION 3.5(a)) for such
Payment Date, the Servicer shall deliver to the Indenture Trustee, with a copy
to the Insurer, the Owner Trustee and the Fiscal Agent, no later than 2:00 p.m.,
New York City time, on such Determination Date, a written notice specifying the
Policy Claim Amount for such Payment Date. The Indenture Trustee shall, no later
than 12:00 p.m., New York City time, on the second Business Day prior to such
Payment Date, make a claim under the Policy for such Policy Claim Amount by
delivering to the Insurer and the Fiscal Agent, with a copy to the Servicer, a
Notice (as defined in the Policy) for such Policy Claim Amount. In making any
such claim, the Indenture Trustee shall comply with all the terms and conditions
of the Policy. The "POLICY CLAIM AMOUNT" with respect to a Payment Date shall
equal the sum of the following amounts:

          (i)   the excess, if any, of (A) the Total Note Interest for such
     Payment Date over (B) the portion of Total Available Funds for such Payment
     Date applied to the payment thereof pursuant to SECTIONS 3.5(d) and (e);
     and

          (ii)  the Principal Deficit; and

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<Page>

          (iii) the Class A Note Balance outstanding on the Final Note Payment
     Date, after giving effect to all other distributions to the Class A
     Noteholders to be made on such Final Note Payment Date.

     The Servicer shall instruct the Indenture Trustee to deposit, and the
Indenture Trustee upon receipt of such instructions shall deposit, the proceeds
of any drawing under the Policy in respect of CLAUSES (i), (ii) and (iii) above
to the Class A Note Payment Account.

     It is understood that this SECTION 3.5(c) shall have no effect upon the
Insurer's obligations under the Policy, which are governed solely by the Policy.

     (d) On each Payment Date, the Servicer shall instruct the Indenture Trustee
to apply the Available Funds for such Payment Date to make the following
payments and deposits in the following order of priority:

          (i)   to the Back-Up Servicer, Indenture Trustee, Custodian and Owner
     Trustee in its individual capacity, respectively, any unpaid or
     unreimbursed fees and expenses (including, but not limited to, attorneys'
     fees and transition expenses); PROVIDED that any such expenses shall not
     exceed $50,000 in the aggregate per year and (A) prior to an Event of
     Servicing Termination, $100,000 in the total aggregate or (B) after an
     Event of Servicing Termination, $200,000 in the total aggregate so long as
     the Notes shall remain outstanding and the Policy has not been cancelled;

          (ii)  to the Servicer, the Total Servicing Fee for the preceding
     Collection Period;

          (iii) to the Class A Note Payment Account, the Total Note Interest for
     such Payment Date;

          (iv)  unless an Insurer Default has occurred and is continuing, to the
     Insurer, the Insurance Premium for such Payment Date plus any overdue
     Insurance Premiums for previous Payment Dates;

          (v)   to the Class A Note Payment Account, the Class A Monthly Note
     Principal for such Payment Date;

          (vi)  to the Insurer, the aggregate amount of any unreimbursed
     payments under the Policy to the extent payable to the Insurer under the
     Insurance Agreement PLUS accrued interest on any unreimbursed payments
     under the Policy at the rate provided in the Insurance Agreement PLUS any
     other amounts due the Insurer under the Insurance Agreement and the Policy;

          (vii) if the Notes have been declared immediately due and payable
     following the occurrence of an Event of Default, to the Class A Note
     Payment Account, the lesser of (a) the amount of Available Funds available
     after payment of items (i) through (vi) above and (b) the Class A Note
     Balance;

          (viii) to the Reserve Account, the Reserve Account Deficiency, if any,
     for such Payment Date;

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<Page>

          (ix) after the occurrence of a Re-Liening Trigger, to the Servicer (if
     not First Investors Servicing Corporation), any and all expenses incurred
     in connection with re-titling the Financed Vehicles, to the extent not
     previously paid;

          (x) to the Class B Note Payment Account, the Class B Monthly Note
     Principal for such Payment Date;

          (xi) other amounts, if any, due the Owner Trustee in its individual
     capacity, the Indenture Trustee, the Custodian, the Back-Up Servicer, the
     Servicer and the Insurer, respectively, pursuant to the Transaction
     Documents; and

          (xii) to the Depositor Account, any remaining amount of Available
     Funds.

     On each Payment Date, the Servicer shall instruct the Indenture Trustee to
make the payments described in Section 2.8 of the Indenture, as applicable, from
the Note Payment Accounts.

     (e) On each Payment Date, the Servicer shall instruct the Indenture Trustee
to apply, and the Indenture Trustee shall apply, the amount withdrawn from the
Reserve Account in respect of the Reserve Account Draw Amount in accordance with
PARAGRAPH (B) of this SECTION 3.5 to make the following payments in the
following order of priority:

          (i)   to the Servicer, the Total Servicing Fee for the preceding
     Collection Period;

          (ii)  to the Class A Note Payment Account, the Total Note Interest for
     such Payment Date;

          (iii) to the Class A Note Payment Account, the Class A Monthly Note
     Principal for such Payment Date (only if, and to the extent that, at such
     time the Class A Balance exceeds the sum of the Pool Balance and 99% of the
     amount on deposit in the Prefunding Account as of the last day of the
     related Collection Period);

          (iv)  unless an Insurer Default has occurred and is continuing, to the
     Insurer, the Insurance Premium for such Payment Date plus any overdue
     Insurance Premiums for previous Payment Dates; and

          (v)   to the Insurer, the aggregate amount of any unreimbursed
     payments under the Policy to the extent payable to the Insurer under the
     Insurance Agreement PLUS accrued interest on any unreimbursed payments
     under the Policy at the rate provided in the Insurance Agreement PLUS any
     other amounts due the Insurer under the Insurance Agreement and the Policy.

     (f) On any Payment Date on or after which the Class A Notes have become due
and payable, the Servicer may, with the prior written consent (a copy of which
written consent shall be forwarded by the Servicer to the Indenture Trustee) of
the Insurer, and shall, at the written direction (a copy of which written
direction shall be forwarded by the Servicer to the Indenture Trustee) of the
Insurer (provided that no Insurer Default shall have occurred and be
continuing), instruct the Indenture Trustee to withdraw from the Reserve
Account, and the Indenture Trustee upon receipt of such instructions shall
withdraw from the Reserve Account, an amount equal to

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<Page>

the remainder of the Class A Note Balance after the application of all other
amounts distributable to the Class A Noteholders on such Payment Date pursuant
to the Transaction Documents. The Servicer may, with the prior written consent
(a copy of which written consent shall be forwarded by the Servicer to the
Indenture Trustee) of the Insurer (provided that no Insurer Default shall have
occurred and be continuing), and shall, at the written direction (a copy of
which written direction shall be forwarded by the Servicer to the Indenture
Trustee) of the Insurer, instruct the Indenture Trustee to apply, and the
Indenture Trustee shall apply, such amount to the payment of the Class A Note
Balance until the Class A Note Balance has been reduced zero.

     SECTION 3.6 RESERVE ACCOUNT.

     (a) The Servicer shall establish, on or before the Closing Date, and
maintain in the name of the Indenture Trustee at an Eligible Institution (which
shall initially be the Indenture Trustee) a segregated trust account designated
as the Reserve Account (the "RESERVE ACCOUNT"). The Reserve Account shall be
held in trust for the benefit of the Class A Noteholders, the Servicer and the
Insurer. The Reserve Account shall be under the sole dominion and control of the
Indenture Trustee; PROVIDED, HOWEVER, that the Servicer may make deposits to and
direct the Indenture Trustee in writing to make withdrawals from the Reserve
Account in accordance with this Agreement and the Indenture. On the Closing
Date, the Trust shall deposit the Initial Reserve Account Deposit into the
Reserve Account from the net proceeds of the sale of the Notes. Pursuant to the
Indenture, the Trust will pledge all of its right, title and interest in, to and
under the Reserve Account and the Reserve Account Property and to the Indenture
Trustee on behalf of the Class A Noteholders and the Insurer to secure its
obligations under the Class A Notes and the Indenture.

     (b) The Reserve Account Property shall, to the extent permitted by
applicable law, rules and regulations, be invested, as directed in writing by
the Servicer, by the bank or trust company then maintaining the Reserve Account
in Eligible Investments that mature not later than the Business Day preceding
the next Payment Date. All such Eligible Investments shall be held to maturity.
All interest and other income (net of losses and investment expenses) on funds
on deposit in the Reserve Account shall, at the written direction of the
Servicer, be paid to the Trust on any Payment Date to the extent that funds on
deposit therein, as certified by the Servicer, exceed the Required Reserve
Account Amount. If the Reserve Account is no longer to be maintained at the
Indenture Trustee, the Servicer shall, with the Indenture Trustee's assistance
as necessary, cause the Reserve Account to be moved to an Eligible Institution
within ten (10) Business Days (or such longer period not to exceed thirty (30)
calendar days as to which each Rating Agency and the Insurer (provided that no
Insurer Default shall have occurred and is continuing) may consent). The
Servicer shall promptly notify the Insurer (provided that no Insurer Default
shall have occurred and is continuing) and the Indenture Trustee of any change
in the account number or location of the Reserve Account.

     (c) With respect to any Reserve Account Property:

         (i) any Reserve Account Property that is a "financial asset" as
     defined in Section 8-102(a)(9) of the UCC shall be physically delivered to,
     or credited to an account in the name of, the Eligible Institution
     maintaining the Reserve Account, in accordance with such institution's
     customary procedures such that such institution establishes a "securities
     entitlement" in favor of the Indenture Trustee with respect thereto;

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         (ii)  any Reserve Account Property that is held in deposit accounts
     shall be held solely in the name of the Indenture Trustee at one or more
     depository institutions having the Required Rating and each such deposit
     account shall be subject to the exclusive custody and control of the
     Indenture Trustee and the Indenture Trustee shall have sole signature
     authority with respect thereto; and

         (iii) except for any deposit accounts specified in CLAUSE (II) above,
     the Reserve Account shall only be invested in securities or in other assets
     which the Eligible Institution maintaining the Reserve Account agrees to
     treat as "financial assets" as defined in Section 8-102(a)(9) of the UCC.

     (d) If the Reserve Account Amount for any Payment Date (after giving effect
to the withdrawal of the Reserve Account Draw Amount for such Payment Date)
exceeds the Required Reserve Account Amount for such Payment Date, the Servicer
shall, unless an Event of Default has occurred and is continuing, instruct the
Indenture Trustee in writing to distribute, and the Indenture Trustee upon
receipt of such instructions shall distribute, the amount of such excess to the
Paying Agent for distribution in accordance with Section 5.2 of the Trust
Agreement. The Indenture Trustee hereby releases, on each Payment Date, its
security interest in, to and under Reserve Account Property distributed to the
Depositor pursuant to this SECTION 3.6. If an Event of Default has occurred and
is continuing, the Servicer shall instruct the Indenture Trustee to apply, and
the Indenture Trustee upon receipt of such instructions shall apply, the amount
of such excess to the Collection Account for application to the Available Funds
pursuant to SECTION 3.5(d).

     (e) If the Class A Note Balance and all other amounts owing or to be
distributed hereunder or under the Indenture to the Class A Noteholders and the
Insurer have been paid in full and the Trust has been terminated, any remaining
Reserve Account Property shall be distributed in accordance with Section 5.2 of
the Trust Agreement.

     SECTION 3.7 PREFUNDING ACCOUNT.

     (a) The Servicer shall establish, on or before the Closing Date, and
maintain in the name of the Indenture Trustee at an Eligible Institution (which
shall initially be the Indenture Trustee) a segregated trust account designated
as the Prefunding Account (the "PREFUNDING ACCOUNT"). The Prefunding Account
shall be held in trust for the benefit of the Insurer and the Noteholders. The
Prefunding Account shall be under the sole dominion and control of the Indenture
Trustee; PROVIDED, HOWEVER, that the Servicer may make deposits to and direct
the Indenture Trustee in writing to make withdrawals from the Prefunding Account
in accordance with this Agreement and the Indenture. All monies deposited from
time to time in the Prefunding Account pursuant to this Agreement shall be held
by the Indenture Trustee as part of the Trust Property and shall be applied as
provided in this Agreement. All deposits to and withdrawals from the Prefunding
Account shall be made only upon the terms and conditions of the Transaction
Documents.

     (b) All amounts held in the Prefunding Account shall, to the extent
permitted by applicable law, rules and regulations, be invested, as directed in
writing by the Servicer, by the bank or trust company then maintaining the
Prefunding Account in Eligible Investments that mature not later than the
Business Day preceding the Payment Date following the Collection Period to which
such amounts relate. All such Eligible Investments shall be held to maturity. If

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the Prefunding Account is no longer to be maintained at the Indenture Trustee,
the Servicer shall, with the Indenture Trustee's assistance as necessary, cause
the Prefunding Account to be moved to an Eligible Institution within ten (10)
Business Days (or such longer period not to exceed thirty (30) calendar days as
to which each Rating Agency and the Insurer (provided that no Insurer Default
shall have occurred and is continuing) may consent). The Servicer shall promptly
notify the Indenture Trustee, the Insurer (provided that no Insurer Default
shall have occurred and is continuing) and the Owner Trustee of any change in
the account number or location of the Prefunding Account.

     (c) On the Closing Date, the Trust will deposit an amount equal to the
Initial Prefunding Account Deposit from the aggregate proceeds of the sale of
the Notes into the Prefunding Account. The Issuer shall cause the Servicer to
notify the Indenture Trustee five Business Days prior to any proposed purchase
of Additional Contracts, such notice to contain (i) a Contract Schedule listing
the relevant information for such Additional Contracts, (ii) the Additional
Purchase Price and (iii) the proposed Additional Contract Purchase Date. During
the Prefunding Period, unless the Indenture Trustee, on such proposed Additional
Contract Purchase Date, has actual knowledge of the occurrence of a Default or
Event of Default, the Indenture Trustee shall transfer the Additional Purchase
Price for such Additional Contracts from the Prefunding Account to such account
as the Trust, through the Servicer, may specify.

     (d) On the Prefunding Account Ending Date, upon direction from the
Servicer, the Indenture Trustee shall transfer 99% of the Excess Prefunding
Amount to the Class A Note Payment Account and the remaining 1% of the Excess
Prefunding Amount to the Class B Note Payment Account.

     SECTION 3.8 STATEMENTS TO NOTEHOLDERS.

     On or prior to each Determination Date, the Servicer shall provide to the
Indenture Trustee (with copies to the Rating Agencies and each Paying Agent) for
the Indenture Trustee to forward to each Noteholder of record as of the most
recent Record Date upon a written request from any such Noteholder, a statement
which shall set forth at least the following information as to the Notes (to the
extent applicable) with respect to the distribution to be made on such Payment
Date:

     (a) the amount of such distribution allocable to Total Note Interest;

     (b) the amount of such distribution allocable to interest, overdue interest
and interest on overdue interest for the Class A Notes;

     (c) the amount of such distribution allocable to principal on the Class A
Notes and the Class B Notes;

     (d) the Total Servicing Fee for the preceding Collection Period;

     (e) the Class A Note Balance and the Note Pool Factor, in each case as of
the close of business on the last day of the preceding Collection Period (after
giving effect to payments allocated to principal reported under CLAUSE (c)
above);

     (f) the Pool Balance as of the close of business on the last day of the
preceding Collection Period;

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     (g) the Reserve Account Amount on such Payment Date (after giving effect to
all deposits to or withdrawals from the Reserve Account on such Payment Date);

     (h) the aggregate Purchase Amount of Purchased Contracts, if any, with
respect to the preceding Collection Period;

     (i) the number and aggregate Principal Balance of Contracts that were 31-59
days, 60-89 days or 90 days or more delinquent as of the last day of the
preceding Collection Period;

     (j) Cumulative Net Loss Rate information with respect to the preceding
Collection Periods; and

     (k) prior to the Prefunding Account Ending Date, the Prefunding Account
Balance and the Capitalized Interest Amount.

     SECTION 3.9 CONTROL OF SECURITIES ACCOUNTS.

     (a) Notwithstanding anything else contained herein, the Servicer, the
Depositor and the Trust agrees that each of the Collection Account, the
Prefunding Account, the Class A Note Payment Account, the Class B Note Payment
Account and the Reserve Account will only be established at an Eligible
Institution that agrees substantially as follows: (i) it will comply with
"entitlement orders" (as defined in Section 8-102(a)(8) of the UCC) relating to
such accounts issued by the Indenture Trustee without further consent by the
Trust, the Servicer or the Depositor; (ii) until the termination of the
Indenture, it will not enter into any other agreement relating to any such
account pursuant to which it agrees to comply with entitlement orders of any
Person other than the Indenture Trustee; (iii) all assets delivered or credited
to it in connection with such accounts and all investments thereof will be
promptly credited to such accounts; and (iv) that all property credited to such
accounts are "financial assets" as defined in Section 8-102(9) of the Relevant
UCC.

     (b) Notwithstanding anything else contained herein, the Servicer, the
Depositor and the Trust agree that the Depositor Account will only be
established at an Eligible Institution that agrees substantially as follows: (i)
it will comply with "entitlement orders" (as defined in Section 8-102(a)(8) of
the UCC) relating to such accounts issued by the Trust without further consent
by the Depositor or the Servicer; (ii) until the termination of the Trust
Agreement, it will not enter into any other agreement relating to any such
account pursuant to which it agrees to comply with entitlement orders of any
Person other than the Trust; (iii) all assets delivered or credited to it in
connection with such accounts and all investments thereof will be promptly
credited to such account; and (iv) that all property credited to such account
are "financial assets" as defined in Section 8-102(9) of the Relevant UCC.

     SECTION 3.10 POLICY MATTERS.

     (a) The Indenture Trustee hereby agrees on behalf of the Class A
Noteholders (and each Class A Noteholder, by its acceptance of its Class A
Notes, hereby agrees) for the benefit of the Insurer that the Indenture Trustee
shall recognize that to the extent the Insurer makes a payment under the Policy,
either directly or indirectly (as by paying through the Indenture Trustee), to
the Class A Noteholders, the Insurer will be entitled to be subrogated to the
rights of the Class A Noteholders to the extent of such payment made under the
Policy. Any rights of subrogation acquired by the Insurer as a result of any
payment made under the Policy shall, in all

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respects, be subordinate and junior in right of payment to the prior
indefeasible payment in full of all amounts due under the Class A Notes.

     (b) The Indenture Trustee, for itself and on behalf of the Noteholders,
hereby agrees that the Insurer may at any time during the continuation of any
proceeding relating to a Final Order, provided that no Insurer Default shall
have occurred and be continuing, direct all matters relating to such Final
Order, including, without limitation, the direction of any appeal of any order
relating to such Final Order and the posting of any surety, supersedeas or
performance bond pending any such appeal. In addition and without limitation of
the foregoing, the Insurer shall be subrogated, to the extent of any payments
made under the Policy relating to a Final Order, to the rights of the Depositor,
the Servicer, the Seller, the Trust, the Indenture Trustee and the Class A
Noteholders in the conduct of any preference claim relating to a Final Order,
including, without limitation, all rights of any party to any adversarial
proceeding or action with respect to any court order issued in connection with
any such preference claim; PROVIDED, that such subrogation rights shall remain
subject to the last sentence of PARAGRAPH (a) of this SECTION 3.10.

                                   ARTICLE IV

                                   THE SELLER

     SECTION 4.1 REPRESENTATIONS AND WARRANTIES OF THE SELLER.

     The Seller makes the following representations and warranties on which the
Trust shall be deemed to have relied in accepting the Trust Property. The
representations and warranties speak as of the execution and delivery of this
Agreement and shall survive the sale, transfer, assignment and conveyance of the
Trust Property to the Trust pursuant to this Agreement and the pledge of the
Trust Property to the Indenture Trustee pursuant to the Indenture:

     (a) ORGANIZATION AND GOOD STANDING. The Seller has been duly organized and
is validly existing as a corporation in good standing under the laws of the
State of Texas, has the power, authority and legal right to own its properties
and to conduct its business as such properties are currently owned and such
business is currently conducted, and has the power, authority and legal right to
acquire, own and sell the Contracts.

     (b) DUE QUALIFICATION. The Seller is duly qualified to do business as a
foreign corporation in good standing and has obtained all necessary licenses and
approvals in each jurisdiction in which the failure to so qualify or to obtain
such licenses and approvals would, in the reasonable judgment of the Seller,
materially and adversely affect the performance by the Seller of its obligations
under, or the validity or enforceability of, this Agreement, the Indenture, the
Trust Agreement, any of the other Transaction Documents, the Contracts or the
Notes.

     (c) POWER AND AUTHORITY. The Seller has the power and authority to execute,
deliver and perform its obligations under this Agreement and the other
Transaction Documents to which it is a party. The Seller has the power and
authority to sell, assign, transfer and convey the property to be transferred to
and deposited with the Trust and has duly authorized such transfer and deposit
by all necessary corporate action, and the execution, delivery and performance
of this Agreement and the other Transaction Documents to which the Seller is a
party have been duly authorized by the Seller by all necessary corporate action.

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<Page>

     (d) VALID TRANSFER; BINDING OBLIGATION. This Agreement effects a valid
sale, transfer, assignment and conveyance to the Trust of the Contracts and the
other Trust Property enforceable against creditors of and purchasers from the
Seller. This Agreement and the other Transaction Documents to which the Seller
is a party constitute legal, valid and binding obligations of the Seller,
enforceable against the Seller in accordance with their terms, subject, as to
enforceability, to applicable bankruptcy, insolvency, reorganization,
conservatorship, receivership, liquidation and other similar laws and to general
equitable principles.

     (e) NO VIOLATION. The execution, delivery and performance by the Seller of
this Agreement and the other Transaction Documents to which the Seller is a
party, the consummation of the transactions contemplated hereby and thereby and
the fulfillment of the terms hereof and thereof will not conflict with, result
in a breach of any of the terms and provisions of or constitute (with or without
notice or lapse of time or both) a default under the articles of organization or
by-laws of the Seller or any material indenture, agreement, mortgage, deed of
trust or other instrument to which the Seller is a party or by which the Seller
is bound or to which any of its properties are subject, or result in the
creation or imposition of any lien upon any of its properties pursuant to the
terms of any such indenture, agreement, mortgage, deed of trust or other
instrument (other than pursuant to this Agreement), or violate any law, order,
rule or regulation applicable to the Seller or its properties of any federal or
state regulatory body, court, administrative agency or other governmental
instrumentality having jurisdiction over the Seller or any of its properties.

     (f) NO PROCEEDINGS. There are no proceedings or investigations pending, or,
to the knowledge of the Seller, threatened, against the Seller before any court,
regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over the Seller or its properties (i)
asserting the invalidity of this Agreement, the Indenture, the Trust Agreement,
any of the other Transaction Documents or the Notes, (ii) seeking to prevent the
issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Indenture, the Trust Agreement or any of the
other Transaction Documents, (iii) seeking any determination or ruling that, in
the reasonable judgment of the Seller, would materially and adversely affect the
performance by the Seller of its obligations under, or the validity or
enforceability of, this Agreement, the Indenture, the Trust Agreement, any of
the other Transaction Documents, the Contracts or the Notes, or (iv) that, in
the reasonable judgment of the Seller, would adversely affect the federal or
Applicable Tax State income, excise, franchise or similar tax attributes of the
Notes or the Trust.

     SECTION 4.2 LIABILITY OF SELLER; INDEMNITIES.

     (a) The Seller shall be liable in accordance herewith only to the extent of
the obligations specifically undertaken by the Seller under this Agreement.

     (b) Notwithstanding any other provision in any Transaction Document, the
Seller shall indemnify, defend and hold harmless the Trust, the Owner Trustee in
its individual capacity, Bankers Trust Company, and the Indenture Trustee from
and against any taxes that may at any time be asserted against any such Person
with respect to, and as of the date of, the transfer of the Contracts to the
Trust or the issuance and original sale of the Notes, including any sales, gross
receipts, general corporation, tangible personal property, privilege or license
taxes (but, in the case of the Trust, not including any taxes asserted with
respect to ownership of the Contracts or federal or other Applicable Tax State
income taxes arising out of the transactions

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<Page>

contemplated by this Agreement and the other Transaction Documents), and all
costs and expenses in defending against such taxes.

     (c) Notwithstanding any other provision in any Transaction Document, the
Seller shall indemnify, defend and hold harmless the Trust, the Owner Trustee in
its individual capacity, Bankers Trust Company, the Indenture Trustee and the
Noteholders from and against any loss, liability or expense incurred by reason
of (i) the Seller's willful misfeasance, bad faith or negligence in the
performance of its duties under this Agreement or any other Transaction Document
to which it is a party or by reason of a reckless disregard of its obligations
and duties under this Agreement or any other Transaction Document to which it is
a party and (ii) the Seller's violation of federal or state securities laws in
connection with the registration or the sale of the Notes and (iii) any action
taken, or failed to be taken, by the Seller in respect of any portion of the
Trust Property.

     (d) Notwithstanding any other provision in any Transaction Document, the
Seller shall indemnify, defend and hold harmless the Owner Trustee in its
individual capacity, Bankers Trust Company, and the Indenture Trustee and their
respective officers, directors, employees and agents from and against all costs,
expenses, unpaid fees, losses, claims, damages and liabilities arising out of or
incurred in connection with the acceptance or performance of the trusts and
duties contained herein and in the Trust Agreement, in the case of the Owner
Trustee, and in the Indenture, in the case of the Indenture Trustee, except to
the extent that such cost, expense, loss, claim, damage or liability (i) shall
be due to the willful misfeasance, bad faith or gross negligence (except for
errors in judgment) of the Owner Trustee or the Indenture Trustee, as
applicable, (ii) in the case of the Owner Trustee, shall arise from the breach
by the Owner Trustee of any of its representations or warranties in its
individual capacity set forth in the Trust Agreement, (iii) in the case of the
Indenture Trustee, shall arise from the breach by the Indenture Trustee of any
of its representations and warranties set forth in the Indenture or (iv) relates
to any tax other than the taxes with respect to which either the Seller or the
Servicer shall be required to indemnify the Owner Trustee or the Indenture
Trustee, as applicable.

     (e) The Seller shall pay any and all taxes levied or assessed upon all or
any part of the Owner Trust Estate.

     Indemnification under this SECTION 4.2 shall survive the resignation or
removal of the Owner Trustee or the Indenture Trustee and the termination of
this Agreement and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Seller shall have made any indemnity payments
pursuant to this SECTION 4.2 and the Person to or on behalf of whom such
payments are made thereafter shall collect any of such amounts from others, such
Person shall promptly repay such amounts to the Seller, without interest.

     SECTION 4.3 MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS
OF, SELLER.

     Any Person (a) into which the Seller shall be merged or consolidated, (b)
resulting from any merger, conversion or consolidation to which the Seller shall
be a party or (c) that shall succeed by purchase and assumption to all or
substantially all of the business of the Seller, which Person in any of the
foregoing cases executes an agreement of assumption to perform every obligation
of the Seller under this Agreement, shall be the successor to the Seller under
this Agreement without the execution or filing of any other document or any
further act on the part of

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<Page>

any of the parties to this Agreement; PROVIDED, HOWEVER, that (i) the Seller
shall have delivered to the Owner Trustee and the Indenture Trustee an Officer's
Certificate and an Opinion of Counsel each stating that such merger, conversion,
consolidation or succession and such agreement of assumption comply with this
SECTION 4.3 and (ii) the Seller shall have delivered to the Owner Trustee and
the Indenture Trustee an Opinion of Counsel either (A) stating that, in the
opinion of such counsel, all financing statements and continuation statements
and amendments thereto have been authorized and filed that are necessary to
fully preserve and protect the interest of the Trust and the Indenture Trustee,
respectively, in the Contracts and the other Trust Property, and reciting the
details of such filings, or (B) stating that, in the opinion of such counsel, no
such action shall be necessary to fully preserve and protect such interest. The
Seller shall provide notice of any merger, conversion, consolidation or
succession pursuant to this SECTION 4.3 to the Rating Agencies. Notwithstanding
anything herein to the contrary, the execution of the foregoing agreement of
assumption and compliance with CLAUSES (i) and (ii) above shall be conditions to
the consummation of the transactions referred to in CLAUSES (a), (b) and (c)
above.

     SECTION 4.4 LIMITATION ON LIABILITY OF SELLER AND OTHERS.

     (a) Neither the Seller nor any of the directors, officers, employees or
agents of the Seller shall be under any liability to the Trust or the
Noteholders for any action taken or for refraining from the taking of any action
pursuant to this Agreement or for errors in judgment; PROVIDED, HOWEVER, that
this provision shall not protect the Seller or any such Person against any
liability that would otherwise be imposed by reason of willful misfeasance or
bad faith in the performance of duties or by reason of reckless disregard of
obligations and duties under this Agreement, or by reason of negligence in the
performance of duties under this Agreement (except for errors in judgment). The
Seller, and its directors, officers, employees and agents, may rely in good
faith on the advice of counsel or on any document of any kind PRIMA FACIE
properly executed and submitted by any Person in respect of any matters arising
under this Agreement.

     (b) The Seller shall not be under any obligation to appear in, prosecute or
defend any legal action that shall not be incidental to its obligations under
this Agreement and that in its opinion may involve it in any expense or
liability.

     SECTION 4.5 SELLER MAY OWN CLASS A NOTES.

     The Seller, and any Affiliate of the Seller, may, in its individual or any
other capacity, become the owner or pledgee of Class A Notes with the same
rights as it would have if it were not the Seller or an Affiliate of the Seller,
except as otherwise expressly provided herein (including in the definition of
"CLASS A NOTE BALANCE") or in the other Transaction Documents. Except as
otherwise expressly provided herein (including the definition of "CLASS A NOTE
BALANCE") or in the other Transaction Documents, Class A Notes so owned by or
pledged to the Seller or such Affiliate shall have an equal and proportionate
benefit under the provisions of this Agreement and the other Transaction
Documents, without preference, priority or distinction as among the Class A
Notes.

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                                    ARTICLE V

                                  MISCELLANEOUS

     SECTION 5.1 AMENDMENT.

     (a) This Agreement may be amended from time to time by the Seller, the
Servicer, the Depositor and the Trust, with the consent of the Indenture Trustee
and the Insurer (provided that no Insurer Default shall have occurred and be
continuing), but without the consent of any of the Noteholders, to cure any
ambiguity, to correct or supplement any provision in this Agreement that may be
inconsistent with any other provisions in this Agreement or any offering
document used in connection with the initial offer and sale of the Notes or to
add, change or eliminate any other provisions with respect to matters or
questions arising under this Agreement that are not inconsistent with the
provisions of this Agreement; PROVIDED, HOWEVER, that such amendment shall not,
as evidenced by an Opinion of Counsel delivered to the Owner Trustee, the
Indenture Trustee and the Insurer, materially and adversely affect the interests
of any Noteholder. Any such amendment shall be deemed not to materially and
adversely affect the interests of any Noteholder if the Rating Agency Condition
is satisfied or the Person requesting the amendment obtains an Opinion of
Counsel satisfactory to the Indenture Trustee and the Owner Trustee to that
effect.

     (b) This Agreement may also be amended from time to time by the Seller, the
Servicer, the Depositor, the Trust and the Insurer (provided that no Insurer
Default shall have occurred and be continuing and if so, provided further that
such amendment shall not have a material adverse effect on the Insurer), with
the consent of the Indenture Trustee and the Holders of Notes evidencing not
less than 51% of the Class A Note Balance, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement, or of modifying in any manner the rights of the Noteholders;
PROVIDED, HOWEVER, that no such amendment shall (i) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, or change the
allocation or priority of, collections on or in respect of the Contracts or
distributions that are required to be made for the benefit of the Noteholders or
change the Note Rate, or the Required Reserve Account Amount, without the
consent of all adversely affected Noteholders (ii) reduce the percentage
required to consent to any such amendment, without the consent of all adversely
affected Noteholders or (iii) adversely affect the rating of the Notes by the
Rating Agencies without the consent of the Holders of Notes evidencing not less
than 66-2/3% of the Class A Note Balance.

     (c) Prior to the execution of any amendment or consent pursuant to SECTION
5.1(B), the Servicer shall provide written notification of the substance of such
amendment or consent to each Rating Agency and the Insurer.

     (d) Promptly after the execution of any amendment or consent pursuant to
SECTION 5.1(b), the Trust shall furnish written notification of the substance of
such amendment or consent to the Indenture Trustee and each of the Rating
Agencies. It shall not be necessary for the consent of the Noteholders pursuant
to SECTION 5.1(b) to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents (and any other consents of the
Noteholders provided for in this Agreement) and of evidencing the authorization
of the execution

                                       39
<Page>

thereof by the Noteholders shall be subject to such reasonable requirements as
the Owner Trustee and the Indenture Trustee may prescribe.

     (e) Prior to the execution of any amendment pursuant to this SECTION 5.1,
the Owner Trustee and the Indenture Trustee shall be entitled to receive and
rely upon (i) an Opinion of Counsel stating that the execution of such amendment
(A) is authorized or permitted by this Agreement, (B) will not materially
adversely affect the federal or any Applicable Tax State income or franchise
taxation of any Outstanding Note or any Holder thereof and (C) will not cause
the Trust to be taxable as a corporation for federal or any Applicable Tax State
income or franchise tax purposes and (ii) an Officer's Certificate of the
Servicer that all conditions precedent provided for in this Agreement to the
execution of such amendment have been complied with. The Owner Trustee or the
Indenture Trustee may, but shall not be obligated to, enter into any such
amendment which affects such Owner Trustee's or Indenture Trustee's own rights,
duties or immunities under this Agreement or otherwise.

     SECTION 5.2 PROTECTION OF TITLE OF TRUST.

     (a) The Seller or the Servicer, or both, shall authorize and file such
financing statements and cause to be authorized and filed such continuation
statements, all in such manner and in such places as may be required by law
fully to preserve, maintain and protect the interest of the Trust and the
Indenture Trustee for the benefit of the Noteholders and the Insurer in the
Contracts and the proceeds thereof. The Seller or the Servicer, or both, shall
deliver (or cause to be delivered) to the Owner Trustee and the Indenture
Trustee file-stamped copies of, or filing receipts for, any document filed as
provided above as soon as available following such filing.

     (b) Neither the Seller nor the Servicer shall change its name, identity or
corporate structure in any manner that would make any financing statement or
continuation statement filed by the Seller or the Servicer in accordance with
SECTION 5.2(a) seriously misleading within the meaning of Section 9-507 of the
Relevant UCC, unless it shall have given the Owner Trustee and the Indenture
Trustee at least sixty (60) days' prior written notice thereof and shall have
promptly filed such amendments to previously filed financing statements or
continuation statements or such new financing statements as may be necessary to
continue the perfection of the interest of the Trust and the Indenture Trustee
for the benefit of the Noteholders and the Insurer in the Contracts and the
proceeds thereof.

     (c) The Seller and the Servicer shall give the Owner Trustee and the
Indenture Trustee at least sixty (60) days' prior written notice of any
relocation of its principal executive office or change of its jurisdiction of
formation and shall promptly file any such amendment, continuation statement or
any new financing statement. The Servicer shall at all times maintain each
office from which it shall service Contracts, and its principal executive
office, within the United States of America.

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

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     (e) The Servicer shall maintain its computer systems so that, from and
after the time of the transfer of the Contracts to the Trust pursuant to this
Agreement, the Servicer's master computer records (including any back-up
archives) that refer to a Contract shall indicate clearly the interest of the
Trust and the Indenture Trustee in such Contract and that such Contract is owned
by the Trust and has been pledged to the Indenture Trustee pursuant to the
Indenture. Indication of the Trust's and the Indenture Trustee's interest in a
Contract shall be deleted from or modified on the Servicer's computer systems
when, and only when, such Contract shall have been paid in full or repurchased
by the Seller or purchased by the Servicer.

     (f) If at any time the Seller or the Servicer shall propose to sell, grant
a security interest in or otherwise transfer any interest in any motor vehicle
retail installment sale contract or security interest and promissory note to any
prospective purchaser, lender or other transferee, the Servicer shall give to
such prospective purchaser, lender or other transferee computer tapes, compact
disks, records or print-outs (including any restored from back-up archives)
that, if they shall refer in any manner whatsoever to any Contract, shall
indicate clearly that such Contract has been sold and is owned by the Trust and
has been pledged to the Indenture Trustee (unless such Contract has been paid in
full or repurchased by the Seller or purchased by the Servicer).

     (g) The Servicer shall permit the Owner Trustee, the Indenture Trustee and
their respective agents at any time during normal business hours to inspect,
audit and make copies of and abstracts from the Servicer's records regarding any
Contract.

     (h) Upon request, the Servicer shall furnish to the Owner Trustee and the
Indenture Trustee, within ten (10) Business Days, a list of all Contracts (by
contract number and name of Obligor) then held as part of the Trust, together
with a reconciliation of such list to the Contract Schedule and to each of the
Monthly Servicer Reports furnished before such request indicating removal of
Contracts from the Trust.

     (i) The Servicer shall deliver to the Owner Trustee and the Indenture
Trustee:

         (i)   promptly after the execution and delivery of each amendment to
     any financing statement, an Opinion of Counsel either (A) stating that, in
     the opinion of such Counsel, all financing statements and continuation
     statements have been authorized and filed that are necessary fully to
     preserve and protect the interest of the Trust and the Indenture Trustee in
     the Contracts, and reciting the details of such filings or referring to
     prior Opinions of Counsel in which such details are given, or (B) stating
     that, in the opinion of such Counsel, no such action shall be necessary to
     preserve and protect such interest; and

         (ii)  within ninety (90) days after the beginning of each calendar
     year (beginning with the year 2003), an Opinion of Counsel, dated as of a
     date during such 90-day period, either (A) stating that, in the opinion of
     such Counsel, all financing statements and continuation statements have
     been authorized and filed that are necessary fully to preserve and protect
     the interest of the Trust and the Indenture Trustee in the Contracts, and
     reciting the details of such filings or referring to prior Opinions of
     Counsel in which such details are given, or (B) stating that, in the
     opinion of such Counsel, no such action shall be necessary to preserve and
     protect such interest.

                                       41
<Page>

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

     SECTION 5.3 GOVERNING LAW.

     This Agreement shall be construed in accordance with the laws of the State
of New York and the obligations, rights and remedies of the parties under this
Agreement shall be determined in accordance with such laws.

     SECTION 5.4 NOTICES.

     All demands, notices and other communications under this Agreement shall be
in writing, personally delivered, sent by telecopier, overnight courier or
mailed by certified mail, return receipt requested, and shall be deemed to have
been duly given upon receipt (a) in the case of the Seller, at the following
address: 675 Bering Drive, Suite 710, Houston, Texas 77057 Attention: Bennie
Duck, (b) in the case of the Servicer, at the following address: 675 Bering
Drive, Suite 710, Houston, Texas 77057, Attention: Bennie Duck, (c) in the case
of the Owner Trustee, at the related Corporate Trust Office, with a copy to
Bankers Trust Company, 4 Albany Street, 10th Floor, New York, NY 10006,
Attention: Structured Finance Group, (d) in the case of the Indenture Trustee,
at the related Corporate Trust Office, (e) in the case of Moody's, at the
following address: Moody's Investors Service, Inc., ABS Monitoring Department,
99 Church Street, New York, New York 10007, and (f) in the case of S&P, at the
following address: Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041,
Attention: Asset Backed Surveillance Department, and (g) in the case of the
Insurer, at the following address: MBIA Insurance Corporation, 113 King Street,
Armonk, New York 10504, Attention: Insured Portfolio Management, Structured
Finance.

     SECTION 5.5 SEVERABILITY OF PROVISIONS.

     If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement, or of the Notes, or the rights of the Holders thereof.

     SECTION 5.6 ASSIGNMENT.

     Notwithstanding anything to the contrary contained herein this Agreement
may not be assigned by the Seller or the Servicer without the prior written
consent of the Trust, the Indenture Trustee, the Holders of Notes evidencing not
less than 66-2/3% of the Class A Note Balance.

     SECTION 5.7 FURTHER ASSURANCES.

     The Seller and the Servicer agree to do and perform, from time to time, any
and all acts and to execute any and all further instruments required or
reasonably requested by the Owner Trustee or the Indenture Trustee more fully to
effect the purposes of this Agreement, including, without limitation, the
execution of any financing statements or continuation statements relating

                                       42
<Page>

to the Contracts for filing under the provisions of the Relevant UCC of any
applicable jurisdiction.

     SECTION 5.8 NO WAIVER; CUMULATIVE REMEDIES.

     No failure to exercise and no delay in exercising, on the part of the Owner
Trustee, the Indenture Trustee, the Insurer, the Noteholders, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges
provided in this Agreement are cumulative and not exhaustive of any rights,
remedies, powers and privileges provided by law.

     SECTION 5.9 THIRD-PARTY BENEFICIARIES.

     This Agreement shall inure to the benefit of and be binding upon the
parties hereto, the Noteholders, the Insurer and their respective successors and
permitted assigns. Except as otherwise provided in SECTION 4.2 and this
ARTICLE V, no other Person shall have any right or obligation hereunder. The
parties hereto hereby acknowledge and consent to the pledge of this Agreement by
the Trust to the Indenture Trustee for the benefit of the Noteholders and the
Insurer pursuant to the Indenture.

     SECTION 5.10 ACTIONS BY NOTEHOLDERS.

     (a) Wherever in this Agreement a provision is made that an action may be
taken or a notice, demand or instruction given by the Noteholders, such action,
notice or instruction may be taken or given by any Noteholder, as applicable,
unless such provision requires a specific percentage of the Noteholders.

     (b) Any request, demand, authorization, direction, notice, consent, waiver
or other act by a Noteholder shall bind such Noteholder and every subsequent
Holder of such Note issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done or omitted to
be done by the Owner Trustee, the Indenture Trustee or the Servicer in reliance
thereon, whether or not notation of such action is made upon such Note.

     SECTION 5.11 COUNTERPARTS.

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

     SECTION 5.12 AGENT FOR SERVICE.

     The agent for service of the Seller and the Servicer in respect of this
Agreement shall be Bennie Duck, 675 Bering Drive, Suite 710, Houston, Texas
77057.

     SECTION 5.13 NO BANKRUPTCY.

                                       43
<Page>

     The Owner Trustee, the Indenture Trustee, the Trust, the Depositor and the
Servicer each covenants and agrees that, prior to the date which is one year and
one day after the payment in full of all securities issued by the Trust, which
securities were rated by any nationally recognized statistical rating
organization, it will not institute against, or join any other Person in
instituting against, or knowingly or intentionally cooperate or encourage any
other Person in instituting against, the Depositor or the Trust any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
proceedings under any federal or state bankruptcy or similar law. This SECTION
5.13 shall survive the resignation or removal of the Owner Trustee under the
Trust Agreement and the Indenture Trustee under the Indenture and shall survive
the termination of the Trust Agreement and the Indenture.

     SECTION 5.14 LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE
TRUSTEE.

     (a) Notwithstanding anything contained herein or contemplated hereby to the
contrary, this Agreement has been signed by the Owner Trustee not in its
individual capacity but solely in its capacity as Owner Trustee of the Trust,
and in no event shall the Owner Trustee in its individual capacity have any
liability for the representations, warranties, covenants, agreements or other
obligations of the Trust hereunder or in any of the certificates, notices or
agreements delivered pursuant hereto or contemplated hereby, as to all of which
recourse shall be had solely to the assets of the Trust. For all purposes of
this Agreement, the Owner Trustee (as such and in its individual capacity) shall
be subject to, and entitled to the benefits of, the terms and provisions of the
Trust Agreement.

     (b) Notwithstanding anything contained herein to the contrary, this
Agreement has been accepted by the Indenture Trustee not in its individual
capacity but solely as Indenture Trustee, and in no event shall the Indenture
Trustee in its individual capacity have any liability for the representations,
warranties, covenants, agreements or other obligations of the Trust hereunder or
in any of the certificates, notices or agreements delivered pursuant hereto, as
to all of which recourse shall be had solely to the assets of the Trust.

     SECTION 5.15 CERTAIN RIGHTS OF THE INSURER.

     So long as no Insurer Default shall have occurred and be continuing, the
Insurer shall have the right to exercise all rights, including voting rights,
which the Class A Noteholders are entitled to exercise pursuant to this Sale and
Allocation Agreement, without any consent of such Class A Noteholders; PROVIDED,
HOWEVER, that the foregoing shall not apply to the rights of the Class A
Noteholders set forth in the proviso to PARAGRAPH (B) of SECTION 5.1 of this
Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       44
<Page>

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

                                       FIRST INVESTORS FINANCIAL SERVICES, INC.,
                                       as Seller

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

                                       FIRST INVESTORS SERVICING CORPORATION,
                                       as Servicer

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

                                       FIRST INVESTORS
                                       AUTO OWNER TRUST 2002-A

                                       By:  BANKERS TRUST (DELAWARE), not in
                                            its individual capacity but solely
                                            as Owner Trustee

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

                                       FIRST INVESTORS AUTO FUNDING CORPORATION,
                                       as Depositor

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

<Page>

Accepted and agreed:

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
not in its individual capacity but solely as Indenture Trustee

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

<Page>

                                   Schedule 1

                                Contract Schedule

<Page>

                                   Schedule 2

                           Location of Contract Files

Sixth Street and Marquette Avenue
MAC N9328-011
Suite ABS
751 Kasota Avenue
Minneapolis, MN 55414
Attn: Corporate Trust Services - Asset Backed Securities Vault

<Page>

                                    Exhibit A

                         Form of Monthly Servicer Report

<Page>

                                    Exhibit B

                                   [Reserved]

<Page>

                                    Exhibit C

                          Credit and Collection Policy

<Page>

                                    Exhibit D

                               Offering Memorandum

<Page>

                                    Exhibit E

                          Form of Originator Agreement

<Page>

                                    Exhibit F

                     Form Of Additional Contract Assignment

     For value received, in accordance with the Sale and Allocation Agreement
(the "SALE AND ALLOCATION AGREEMENT"), dated as of January 1, 2002, by and among
the First Investors Financial Services, Inc., First Investors Servicing
Corporation, First Investors Auto Funding Corporation, Wells Fargo Bank
Minnesota, National Association and First Investors Auto Owner Trust 2002-A (the
"PURCHASER") the undersigned does hereby sell, transfer, assign and otherwise
convey unto the Purchaser, without recourse (subject to the obligations in the
Sale and Allocation Agreement) all right, title and interest of the Seller in
and to (i) the Additional Contracts listed on Schedule 1 hereto, (ii) all
amounts received on or in respect of such Additional Contracts after the
Additional Cutoff Date related thereto; (iii) the security interests in the
Financed Vehicles related thereto; (iv) as each relates to the Additional
Contracts, the Collection Account, the Reserve Account, the Prefunding Account,
the Class A Note Payment Account and the Class B Note Payment Account and all
amounts, securities, financial assets, investments and other property in or
credited to any of the foregoing and all proceeds thereof; (v) any proceeds from
claims on or refunds of premiums with respect to extended warranties or physical
damage, theft, credit life and credit disability insurance policies relating to
the Financed Vehicles or the related Obligors with respect to such Additional
Contracts; (vi) any Liquidation Proceeds with respect to such Additional
Contracts; (vii) the Contract Files with respect to such Additional Contracts;
(viii) rights under the Servicing Agreement to cause the Servicer to purchase
such Additional Contracts affected materially and adversely by breaches of the
representations and warranties of the Servicer made in the Servicing Agreement;
(ix) and all present and future claims, demands, causes of action and choses in
action in respect of any or all of the foregoing and all payments on or under
and all proceeds of every kind and nature whatsoever in respect of any or all of
the foregoing, including all proceeds of the conversion thereof, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts,
accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any and
every kind and other forms of obligations and receivables, instruments and other
property which at any time constitute all or part of or are included in the
proceeds of any of the foregoing.

     All provisions of the Sale and Allocation Agreement are incorporated herein
by reference. All capitalized terms not defined herein shall have the meanings
set forth in the Sale and Allocation Agreement.

     In consideration for the conveyance of the Additional Contracts to the
Purchaser, Purchaser shall pay to the Seller, contemporaneously with the
execution of this Additional Contract Assignment, cash in the amount of
$_________

     The Seller does hereby make each of the representations and warranties
referred to in Section 2.2 of the Sale and Allocation Agreement with respect to
this Agreement with full force and effect as if fully set forth herein. The
Seller does hereby certify that each of the conditions precedent set forth in
Section 2.1(f) of the Sale and Allocation Agreement has been satisfied.

<Page>

     This Additional Contract Assignment shall be governed by, and construed in
accordance with, the laws of the State of New York, without giving effect to the
conflicts of laws principles thereof.

     IN WITNESS WHEREOF, the undersigned has caused this Additional Contract
Assignment to be executed by its officer thereunto duly authorized, as of
________________, 200[_].

                                        FIRST INVESTORS FINANCIAL SERVICES, INC.

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

<Page>

<Page>

                                                                      Schedule 1
                                                                              to
                                                  Additional Contract Assignment
                                                                           Dated
                                                                __________, 2002

                          List of Additional Contracts<Page>

                                                               Exhibit 10.105(c)

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

                    FIRST INVESTORS AUTO FUNDING CORPORATION,
                                  as Depositor,

                                      and

                            BANKERS TRUST (DELAWARE),
                                as Owner Trustee

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

                      AMENDED AND RESTATED TRUST AGREEMENT
                          Dated as of January 29, 2002

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

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

<Page>

                                TABLE OF CONTENTS
<Table>
<Caption>
                                                                                                              Page
                                                                                                              -----
<S>                                                                                                           <C>
Article I Definitions..........................................................................................1
    SECTION 1.1    DEFINITIONS.................................................................................1
    SECTION 1.2    OTHER DEFINITIONAL PROVISIONS...............................................................4
Article II Organization of the Trust...........................................................................5
    SECTION 2.1    NAME........................................................................................5
    SECTION 2.2    OFFICE......................................................................................5
    SECTION 2.3    PURPOSES AND POWERS.........................................................................5
    SECTION 2.4    APPOINTMENT OF OWNER TRUSTEE................................................................6
    SECTION 2.5    ORGANIZATIONAL MATTERS......................................................................6
    SECTION 2.6    DECLARATION OF TRUST........................................................................6
    SECTION 2.7    TITLE OF TRUST PROPERTY.....................................................................7
    SECTION 2.8    SITUS OF TRUST..............................................................................7
    SECTION 2.9    REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR.............................................7
    SECTION 2.10   FEDERAL INCOME TAX MATTERS..................................................................8
Article III Trust Certificates and Transfer of Interests.......................................................9
    SECTION 3.1    OWNERSHIP...................................................................................9
    SECTION 3.2    THE DEPOSITOR'S CERTIFICATE.................................................................9
    SECTION 3.3    AUTHENTICATION OF THE DEPOSITOR'S CERTIFICATE...............................................9
    SECTION 3.4    REGISTRATION OF THE DEPOSITOR'S CERTIFICATE.................................................9
    SECTION 3.5    MUTILATED, DESTROYED, LOST OR STOLEN DEPOSITOR'S CERTIFICATE...............................10
    SECTION 3.6    APPOINTMENT OF PAYING AGENT................................................................11
Article IV Actions by Owner Trustee...........................................................................11
    SECTION 4.1    PRIOR NOTICE WITH RESPECT TO CERTAIN MATTERS...............................................11
    SECTION 4.2    ACTION BY DEPOSITOR WITH RESPECT TO CERTAIN MATTERS........................................13
    SECTION 4.3    ACTION BY OWNER TRUSTEE WITH RESPECT TO BANKRUPTCY.........................................13
    SECTION 4.4    RESTRICTIONS ON INSURER'S POWER............................................................14
Article V Application of Trust Funds; Certain Duties..........................................................14
    SECTION 5.1    ESTABLISHMENT OF DEPOSITOR ACCOUNT.........................................................14
    SECTION 5.2    APPLICATION OF TRUST FUNDS.................................................................14
    SECTION 5.3    METHOD OF PAYMENT..........................................................................15
    SECTION 5.4    NO SEGREGATION OF MONIES; NO INTEREST......................................................15
Article VI Authority and Duties of Owner Trustee..............................................................15
    SECTION 6.1    GENERAL AUTHORITY..........................................................................15
    SECTION 6.2    GENERAL DUTIES.............................................................................16
    SECTION 6.3    ACTION UPON INSTRUCTION....................................................................16
    SECTION 6.4    NO DUTIES EXCEPT AS SPECIFIED IN THIS AGREEMENT OR IN INSTRUCTIONS.........................17
    SECTION 6.5    NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR INSTRUCTIONS.................................17
    SECTION 6.6    RESTRICTIONS...............................................................................18
</Table>

                                        i
<Page>

<Table>
<Caption>
                                                                                                              Page
                                                                                                              ----
<S>                                                                                                           <C>
Article VII Regarding the Owner Trustee.......................................................................18
    SECTION 7.1    ACCEPTANCE OF TRUSTS AND DUTIES............................................................18
    SECTION 7.2    FURNISHING OF DOCUMENTS....................................................................20
    SECTION 7.3    REPRESENTATIONS AND WARRANTIES.............................................................20
    SECTION 7.4    RELIANCE; ADVICE OF COUNSEL................................................................20
    SECTION 7.5    NOT ACTING IN INDIVIDUAL CAPACITY..........................................................21
    SECTION 7.6    OWNER TRUSTEE NOT LIABLE FOR CONTRACTS.....................................................21
    SECTION 7.7    OWNER TRUSTEE MAY OWN NOTES................................................................22
Article VIII Compensation of Owner Trustee....................................................................22
    SECTION 8.1    OWNER TRUSTEE'S FEES AND EXPENSES..........................................................22
    SECTION 8.2    INDEMNIFICATION............................................................................22
    SECTION 8.3    PAYMENTS TO THE OWNER TRUSTEE..............................................................23
Article IX Termination........................................................................................23
    SECTION 9.1    TERMINATION OF TRUST AGREEMENT.............................................................23
    SECTION 9.2    NOTIFICATION REGARDING BANKRUPTCY OF THE DEPOSITOR.........................................24
    SECTION 9.3    PREPAYMENT.................................................................................24
Article X Successor Owner Trustees and Additional Owner Trustees..............................................25
    SECTION 10.1   ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE.................................................25
    SECTION 10.2   RESIGNATION OR REMOVAL OF OWNER TRUSTEE....................................................26
    SECTION 10.3   SUCCESSOR OWNER TRUSTEE....................................................................26
    SECTION 10.4   MERGER OR CONSOLIDATION OF OWNER TRUSTEE...................................................27
    SECTION 10.5   APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE..............................................27
Article XI Miscellaneous......................................................................................29
    SECTION 11.1   SUPPLEMENTS AND AMENDMENTS.................................................................29
    SECTION 11.2   NO LEGAL TITLE TO OWNER TRUST ESTATE IN THE DEPOSITOR......................................30
    SECTION 11.3   LIMITATION ON RIGHTS OF OTHERS.............................................................31
    SECTION 11.4   NOTICES....................................................................................31
    SECTION 11.5   SEVERABILITY...............................................................................31
    SECTION 11.6   SEPARATE COUNTERPARTS......................................................................32
    SECTION 11.7   SUCCESSORS AND ASSIGNS.....................................................................32
    SECTION 11.8   COVENANTS OF THE DEPOSITOR.................................................................32
    SECTION 11.9   NO PETITION................................................................................32
    SECTION 11.10   HEADINGS..................................................................................32
    SECTION 11.11   GOVERNING LAW.............................................................................32
    SECTION 11.12   AMENDMENT OF TRUST AGREEMENT..............................................................33
    SECTION 11.13   OWNER TRUSTEE PRESUMPTION.................................................................33
</Table>

EXHIBITS

Exhibit A         Form of Depositor's Certificate
Exhibit B         Certificate of Trust

                                       ii
<Page>

     AMENDED AND RESTATED TRUST AGREEMENT, dated as of January 29, 2002 (as
amended, supplemented or otherwise modified and in effect from time to time,
this "AGREEMENT"), between FIRST INVESTORS AUTO FUNDING CORPORATION, a Delaware
corporation, as depositor (the "DEPOSITOR"), and BANKERS TRUST (DELAWARE), a
Delaware banking corporation, (in its capacity as owner trustee and not in its
individual capacity, the "OWNER TRUSTEE").

     WHEREAS, the Depositor and the Owner Trustee have entered into a Trust
Agreement, dated as of January 11, 2002 (the "ORIGINAL TRUST AGREEMENT"); and

     WHEREAS, the Depositor and Owner Trustee desire to amend and restate the
Original Trust Agreement in its entirety as provided herein.

     NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is hereby agreed by and between
the Depositor and the Owner Trustee that the Original Trust Agreement be amended
and restated and replaced in its entirety as follows:

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.1 DEFINITIONS.

     Except as otherwise specified herein or as the context may otherwise
require, the following terms shall have the respective meanings set forth below
for all purposes of this Agreement.

ADMINISTRATOR: First Investors Financial Services, Inc., or any successor
administrator.

AFFILIATE: With respect to any Person, any other Person directly or indirectly
controlling, controlled by or under direct or indirect common control with such
Person. For purposes of this definition, "control" when used with respect to any
Person shall mean the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise.

APPLICABLE TAX STATE: As defined in the Sale and Allocation Agreement.

BUSINESS DAY: Any day other than a Saturday, a Sunday or a day on which banking
institutions or trust companies in New York, New York, Wilmington, Delaware,
Houston, Texas or Atlanta, Georgia are authorized or obligated by law, executive
order or governmental decree to remain closed.

BUSINESS TRUST STATUTE: Chapter 38 of Title 12 of the Delaware Code, 12 Del.
Code section 3801 et seq., as the same may be amended, supplemented or otherwise
modified and in effect from time to time.

<Page>

CERTIFICATE OF TRUST: The Certificate of Trust attached hereto as EXHIBIT B
filed with the Secretary of the State of Delaware on January 11, 2002 for the
Trust pursuant to Section 3810(a) of the Business Trust Statute.

CERTIFICATE REGISTER: As defined in SECTION 3.4.

CERTIFICATE REGISTRAR:  As defined in SECTION 3.4.

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

COLLECTION ACCOUNT: As defined in the Sale and Allocation Agreement.

CONTRACTS: As defined in the Sale and Allocation Agreement.

CORPORATE TRUST OFFICE: The principal office of the Owner Trustee at which at
any particular time its corporate trust business shall be administered, which
office at the date of execution of this Agreement is located at, 1011 Centre
Road, Suite 200, Wilmington Delaware 19805-1266, Attention: Corporate Trust, or
at such other address as the Owner Trustee may designate from time to time by
notice to the Depositor, or the principal corporate trust office of any
successor Owner Trustee at the address designated by such successor Owner
Trustee by notice to the Depositor.

CUTOFF DATE: As defined in the Sale and Allocation Agreement.

DEPOSITOR: First Investors Auto Funding Corporation, a Delaware corporation, in
its capacity as depositor under this Agreement, and its successors.

DEPOSITOR ACCOUNT: As defined in SECTION 5.1.

DEPOSITOR'S CERTIFICATE: A physical certificate evidencing the beneficial
interest of the holder thereof in the Trust as specified therein, substantially
in the form of EXHIBIT A attached hereto.

ERISA: The Employee Retirement Income Security Act of 1974, as amended.

EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.

EXPENSES: As defined in SECTION 8.2 and shall include amounts in connection with
all liabilities, losses, damages, taxes, claims, actions and suits referred to
in such section.

FINAL NOTE PAYMENT DATE: December 15, 2008.

INDEMNIFIED PARTIES: As defined in SECTION 8.2.

                                        2
<Page>

INDENTURE: The Indenture, dated as of January 1, 2002, between the Trust, the
Seller and Wells Fargo Bank Minnesota, National Association, a national banking
association, as indenture trustee, as amended, supplemented or otherwise
modified and in effect from time to time.

INDEPENDENT: As defined in the Indenture.

INITIAL POOL BALANCE: $135,643,108.96.

INSURER: MBIA Insurance Corporation, a New York stock insurance company, and its
successors.

NOTE PAYMENT ACCOUNTS: As defined in the Sale and Allocation Agreement.

NOTE RATE: As defined in the Sale and Allocation Agreement.

NOTES: As defined in the Indenture.

OWNER TRUST ESTATE: All right, title and interest of the Trust in, to and under
the property and rights assigned to the Trust pursuant to Article II of the Sale
and Allocation Agreement and all monies deposited from time to time in the
Collection Account, the Note Payment Accounts, the Prefunding Account and the
Reserve Account.

OWNER TRUSTEE: Bankers Trust (Delaware), a Delaware banking corporation, not in
its individual capacity but solely as Owner Trustee under this Agreement, and
any successor Owner Trustee under this Agreement.

PAYING AGENT: The Owner Trustee, Bankers Trust Company, or any other Person
appointed as Paying Agent in accordance with SECTION 3.6.

PERSON: As defined in the Sale and Allocation Agreement.

POOL BALANCE: As defined in the Sale and Allocation Agreement.

PREFUNDING ACCOUNT: As defined in the Sale and Allocation Agreement.

PREPAYMENT DATE: The Payment Date specified by the Servicer pursuant to SECTION
9.3(a).

RECORD DATE: With respect to any Payment Date or Prepayment Date, the close of
business on the Business Day immediately preceding such Payment Date or
Prepayment Date.

RESERVE ACCOUNT: As defined in the Sale and Allocation Agreement.

RESPONSIBLE OFFICER: As defined in the Indenture.

                                        3
<Page>

SALE AND ALLOCATION AGREEMENT: The Sale and Allocation Agreement, dated as of
January 1, 2002, by and among the Depositor, the Indenture Trustee, the Trust,
the Seller and the Servicer, as amended, supplemented or otherwise modified and
in effect from time to time.

SECRETARY OF STATE: The Secretary of State of the State of Delaware.

SECURITIES ACT: The Securities Act of 1933, as amended.

TOTAL SERVICING FEE: As defined in the Sale and Allocation Agreement.

TRANSACTION DOCUMENTS: As defined in the Indenture.

TRANSFER: To sell, transfer, assign, participate, pledge or otherwise dispose
of.

TREASURY REGULATIONS: Regulations, including proposed or temporary regulations,
promulgated under the Code. All references herein to specific provisions of
proposed or temporary Treasury Regulations shall include analogous provisions of
final Treasury Regulations or other successor Treasury Regulations.

TRUST: The Delaware business trust established by this Agreement.

TRUST ACCOUNTS: As defined in the Indenture.

     SECTION 1.2 OTHER DEFINITIONAL PROVISIONS.

     (a) Capitalized terms used herein and not otherwise defined herein have the
meanings assigned to them in the Sale and Allocation Agreement or, if not
defined therein, in the Indenture.

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

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

     (d) The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. Article, Section and Exhibit
references contained in this Agreement

                                        4
<Page>

are references to Articles, Sections and Exhibits in or to this Agreement unless
otherwise specified. The term "including" shall mean "including without
limitation."

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

     (f) Any agreement, instrument or statute defined or referred to herein or
in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein. References to a
Person are also to its permitted successors and assigns.

                                   ARTICLE II

                            ORGANIZATION OF THE TRUST

     SECTION 2.1 NAME.

     The name of the Trust shall be "First Investors Auto Owner Trust 2002-A,"
in which name the Trust and the Owner Trustee shall have power and authority and
each is hereby authorized and empowered to conduct the business of the Trust,
make and execute contracts and other instruments on behalf of the Trust and sue
and be sued.

     SECTION 2.2 OFFICE.

     The office of the Trust shall be in care of the Owner Trustee at the
Corporate Trust Office or at such other address in the State of Delaware as the
Owner Trustee may designate by written notice to the Depositor.

     SECTION 2.3 PURPOSES AND POWERS.

     The purpose of the Trust is, and the Trust shall have power and authority
and is hereby authorized and empowered, without the need for further action on
the part of the Trust, and the Owner Trustee shall have power and authority and
is hereby authorized and empowered, in the name and on behalf of the Trust, to
do or cause to be done all acts and things necessary, appropriate or convenient
to cause the Trust, to engage solely in the following activities:

     (a) to execute, issue and deliver the Notes pursuant to the Indenture, to
execute, authenticate, issue and deliver the Depositor's Certificate pursuant to
this Agreement, and to sell the Notes and issue the Depositor's Certificate to
the Depositor;

     (b) to use the proceeds of the sale of the Notes to fund the Reserve
Account and the Prefunding Account, to pay the organizational, start-up and
transactional expenses of the Trust and to pay the balance to the Seller
pursuant to the Sale and Allocation Agreement in consideration for the purchase
of Contracts;

                                        5
<Page>

     (c) to pay interest on (with respect to the Class A Notes) and principal of
the Notes and amounts distributable with respect to the Depositor's Certificate;

     (d) to assign, grant, transfer, pledge, mortgage and convey the Collateral
to the Indenture Trustee pursuant to the Indenture;

     (e) to enter into, execute, deliver and perform its obligations under the
Transaction Documents to which it is to be a party;

     (f) subject to compliance with the Transaction Documents, to engage in such
other activities as may be required in connection with conservation of the Owner
Trust Estate and the making of distributions to the Noteholders and the
Depositor; and

     (g) to engage in those activities, including entering into agreements, that
are necessary, suitable or convenient to accomplish the foregoing or are
incidental thereto or connected therewith.

     The Trust is hereby authorized to engage in the foregoing activities. The
Trust shall not engage in any activity other than in connection with the
foregoing or other than as required or authorized by the terms of this Agreement
or the other Transaction Documents.

     SECTION 2.4 APPOINTMENT OF OWNER TRUSTEE.

     The Depositor hereby appoints the Owner Trustee as trustee of the Trust
effective as of the date hereof, to have all the rights, powers and authority
set forth herein and in the Business Trust Statute.

     SECTION 2.5 ORGANIZATIONAL MATTERS.

     The Depositor shall pay from amounts payable to it pursuant to
Section 3.5(d)(xii) of the Sale and Allocation Agreement, the organizational
expenses of the Trust as they may arise or shall, upon the request of the Owner
Trustee, promptly reimburse the Owner Trustee, in its individual capacity, for
any such expenses paid by the Owner Trustee, in its individual capacity. The net
proceeds from the sale of the Notes shall be used to purchase Contracts and
related property from the Seller in accordance with Section 2.1 of the Sale and
Allocation Agreement and to fund the Reserve Account in the amounts required by
the Sale and Allocation Agreement and to fund the Prefunding Account.

     SECTION 2.6 DECLARATION OF TRUST.

     The Owner Trustee hereby declares that it will hold the Owner Trust Estate
in trust upon and subject to the conditions set forth herein for the use and
benefit of the Depositor, subject to the obligations of the Trust under the
Transaction Documents. It is the intention of the parties hereto that (a) the
Trust constitute a business trust under the Business Trust Statute and that this
Agreement constitute the governing instrument of such business trust and
(b) solely for income and franchise tax purposes, the Trust shall be treated as
a trust. Unless otherwise required by the

                                        6
<Page>

appropriate tax authorities, the Trust shall file or cause to be filed annual or
other necessary returns, reports and other forms consistent with the
characterization of the Trust as a trust for such tax purposes. Effective as of
the date hereof, the Owner Trustee shall have all rights, powers and authority
set forth herein and in the Business Trust Statute with respect to accomplishing
the purposes of the Trust. The Owner Trustee shall have power and authority and
is hereby authorized and empowered to execute and file any certificate to be
filed under the Business Trust Statute.

     SECTION 2.7 TITLE OF TRUST PROPERTY.

     Legal title to the entirety of the Owner Trust Estate shall be vested at
all times in the Trust as a separate legal entity, except where applicable law
in any jurisdiction requires title to any part of the Owner Trust Estate to be
vested in a trustee or trustees, in which case title shall be deemed to be
vested in the Owner Trustee, a co-trustee and/or a separate trustee, as the case
may be.

     SECTION 2.8 SITUS OF TRUST.

     The Trust shall be located and administered in the State of Delaware. All
bank accounts maintained by the Owner Trustee on behalf of the Trust shall be
located in the State of Delaware or the State of New York. The Trust shall not
have any employees in any state other than the State of Delaware; PROVIDED,
HOWEVER, that nothing herein shall restrict or prohibit the Owner Trustee from
having employees within or without the State of Delaware. Payments will be
received by the Trust only in the State of Delaware or the State of New York,
and payments will be made by the Trust only from the State of Delaware or the
State of New York. The only office of the Trust will be at the Corporate Trust
Office in the State of Delaware.

     SECTION 2.9 REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR.

     The Depositor hereby represents and warrants to the Owner Trustee (as such
and in its individual capacity) that:

     (a) the Depositor is duly organized and validly existing as a corporation
in good standing under the laws of the State of Delaware, with power and
authority to own its properties and to conduct its business as such properties
are currently owned and such business is presently conducted;

     (b) the Depositor is duly qualified to do business as a foreign corporation
in good standing, and has obtained all necessary licenses and approvals in all
jurisdictions in which the ownership or lease of property or the conduct of its
business requires such qualifications;

     (c) the Depositor has the power and authority to execute and deliver this
Agreement and each other Transaction Document to which it is a party and to
carry out their respective terms, and the Depositor has full power and authority
to sell and assign the property to be sold and assigned to, and deposited with,
the Trust; the Depositor has duly authorized such sale and

                                        7
<Page>

assignment and deposit to the Trust by all necessary action and the execution,
delivery and performance of this Agreement and each other Transaction Document
to which it is a party has been duly authorized by the Depositor by all
necessary action;

     (d) the consummation by the Depositor of the transactions contemplated by
this Agreement and each other Transaction Document to which it is a party and
the fulfillment of the terms hereof and thereof do not conflict with, result in
any breach of any of the terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under, the certificate of
incorporation or bylaws of the Depositor, or any indenture, agreement or other
instrument to which the Depositor is a party or by which it is bound do not
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than pursuant to the Transaction Documents) and do not violate any law
or, to the knowledge of the Depositor, any order, rule or regulation applicable
to the Depositor of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Depositor or its properties;

     (e) there are no proceedings or investigations pending or, to the knowledge
of the Depositor, threatened before any court, regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over the
Depositor or its properties (i) asserting the invalidity of this Agreement, the
Indenture, any of the other Transaction Documents or the Notes, (ii) seeking to
prevent the issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Indenture or any of the other Transaction
Documents, (iii) seeking any determination or ruling that might materially and
adversely affect the performance by the Depositor of its obligations under, or
the validity or enforceability of, this Agreement or any other Transaction
Document to which the Depositor is a party or (iv) which might adversely affect
the federal income tax attributes, or Applicable Tax State franchise or income
tax attributes, of the Notes; and

     (f) the representations and warranties of the Seller in Section 2.2 of the
Sale and Allocation Agreement are true and correct.

     SECTION 2.10 FEDERAL INCOME TAX MATTERS.

     It is the intent of the Depositor and the Servicer that, for purposes of
federal income, state and local income and franchise tax and any other income
taxes, the Trust will be treated as a trust under Treas. Reg. Section
301.7701-4. The Depositor, by acceptance of its interest in the Depositor's
Certificate, agrees to such treatment and agrees to take no action inconsistent
with such treatment and except as authorized by the succeeding sentence shall
not sell or suffer to be transferred the ownership of the Class B Notes unless
the Depositor shall first have either received an opinion of counsel to the
effect that such sale or transfer would not cause the Trust no longer to be
treated as a trust under such regulations or provided the Trust indemnification
satisfactory to the Owner Trustee with respect to any such tax or other expense
that might be imposed on or incurred by the Trust as a result of such action.
Notwithstanding the foregoing, the Depositor (and any transferee thereof) may
sell or transfer or cause the Class B Notes to be sold or transferred

                                        8
<Page>

provided that following such transfer all of the outstanding Class B Notes are
owned by not more than four (4) Persons.

                                  ARTICLE III

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

     SECTION 3.1 OWNERSHIP.

     The Depositor shall be the sole beneficial owner of the Trust.

     SECTION 3.2 THE DEPOSITOR'S CERTIFICATE.

     The Depositor's Certificate shall be issued to the Depositor as a
registered, definitive, physical certificate, substantially in the form set
forth in EXHIBIT A attached hereto. The Depositor's Certificate shall not be
Transferred by the Depositor to any other Person.

     The Depositor's Certificate may be in printed or typewritten form and shall
be executed on behalf of the Trust by manual or facsimile signature of an
authorized officer of the Owner Trustee. If the Depositor's Certificate bears
the manual or facsimile signatures of individuals who were, at the time when
such signatures shall have been affixed, authorized to sign on behalf of the
Trust, it shall be validly issued and entitled to the benefits of this
Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and delivery of the
Depositor's Certificate or did not hold such offices at the date of
authentication and delivery of the Depositor's Certificate.

     SECTION 3.3 AUTHENTICATION OF THE DEPOSITOR'S CERTIFICATE.

     As of the date hereof, the Owner Trustee shall cause the Depositor's
Certificate to be executed on behalf of the Trust, authenticated, issued and
delivered upon written order of the Depositor signed by its manager, its
president, any vice president, its secretary or its treasurer, without further
action by the Depositor. Thereupon, such Depositor's Certificate shall be duly
authorized, validly issued and entitled to the benefits of this Agreement. The
Depositor's Certificate shall not entitle its holder to any benefit under this
Agreement, or be valid for any purpose, unless there shall appear on such
Depositor's Certificate a certificate of authentication substantially in the
form set forth in EXHIBIT A executed by the Owner Trustee or Bankers Trust
Company, as the Owner Trustee's authenticating agent, by manual signature, which
authentication shall constitute conclusive evidence that the Depositor's
Certificate is entitled to the benefits of this Agreement and has been duly
authenticated, duly authorized, validly issued and delivered hereunder. The
Depositor's Certificate shall be dated the date of its authentication.

     SECTION 3.4 REGISTRATION OF THE DEPOSITOR'S CERTIFICATE.

     The Certificate Registrar (defined below) shall cause to be kept, at its
Corporate Trust Office (as defined in the Sale and Allocation Agreement) a
register (the "CERTIFICATE REGISTER") in

                                        9
<Page>

which, subject to such reasonable regulations as it may prescribe, the
Certificate Registrar shall provide for the registration of the Depositor's
Certificate. The Indenture Trustee initially shall be the registrar (the
"CERTIFICATE REGISTRAR") for the purpose of registering the Depositor's
Certificate as herein provided. The Certificate Registrar shall, promptly upon
request, furnish to the Owner Trustee information regarding the Certificate
Register, including a copy thereof. Upon any resignation of any Certificate
Registrar, the Owner Trustee shall promptly appoint a successor or, if it elects
not to make such an appointment, assume the duties of Certificate Registrar.

     SECTION 3.5 MUTILATED, DESTROYED, LOST OR STOLEN DEPOSITOR'S CERTIFICATE.

     (a) If (i) a mutilated Depositor's Certificate is surrendered to the
Certificate Registrar, or the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of the Depositor's Certificate,
and (ii) there is delivered to the Certificate Registrar and Owner Trustee (as
such and in its individual capacity) such security or indemnity as may be
required by them to hold each of the Trust, the Certificate Registrar and the
Owner Trustee (as such and in its individual capacity) harmless, then, in the
absence of notice to the Trust, the Certificate Registrar or the Owner Trustee
that the Depositor's Certificate has been acquired by a protected purchaser, the
Owner Trustee shall execute and the Owner Trustee or Bankers Trust Company, as
the Owner Trustee's authenticating agent, shall authenticate and deliver, in
exchange for, or in lieu of, such mutilated, destroyed, lost or stolen
Depositor's Certificate, a replacement Depositor's Certificate of like tenor and
denomination. If, after the delivery of such replacement Depositor's
Certificate, a protected purchaser of the original Depositor's Certificate in
lieu of which such replacement Depositor's Certificate was issued presents for
payment such original Depositor's Certificate, the Trust shall be entitled to
recover such replacement Depositor's Certificate (or such payment) from the
Person to whom such replacement Depositor's Certificate was delivered or any
Person taking such replacement Depositor's Certificate from such Person to whom
such replacement Depositor's Certificate was delivered or any assignee of such
Person, except a protected purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Trust or the Owner Trustee (as such or in its
individual capacity) in connection therewith.

     (b) Upon the issuance of any replacement Depositor's Certificate under this
SECTION 3.5, the Trust may require the payment by the Depositor of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with such issuance and any other reasonable expenses (including the
fees and expenses of the Owner Trustee (as such and in its individual capacity))
related thereto.

     (c) Any replacement Depositor's Certificate issued pursuant to this
SECTION 3.5 in replacement of the mutilated, destroyed, lost or stolen
Depositor's Certificate shall constitute an original additional contractual
obligation of the Trust, whether or not the mutilated, destroyed, lost or stolen
Depositor's Certificate shall be at any time enforceable by anyone, and shall be
duly authorized, validly issued and entitled to all the benefits of this
Agreement.

                                       10
<Page>

     (d) The provisions of this SECTION 3.5 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of any mutilated, destroyed, lost or stolen Depositor's Certificate.

     SECTION 3.6 APPOINTMENT OF PAYING AGENT.

     The Paying Agent shall initially be Bankers Trust Company, and any
co-paying agent chosen by the Owner Trustee. Bankers Trust Company shall be
permitted to resign as Paying Agent upon thirty (30) days' written notice to the
Owner Trustee. In the event that Bankers Trust Company shall no longer be the
Paying Agent, the Owner Trustee, with the consent of the Insurer, shall appoint
a successor to act as Paying Agent (which shall be a bank or trust company). The
Paying Agent shall return all unclaimed funds to the Owner Trustee and upon
removal of a Paying Agent such Paying Agent shall also return all funds in its
possession to the Owner Trustee. The rights, benefits, protections, privileges
and immunities of the Owner Trustee (as such or in its individual capacity)
under this Agreement shall apply to the Owner Trustee also in its role as Paying
Agent, for so long as the Owner Trustee shall act as Paying Agent and, to the
extent applicable, to any other paying agent appointed hereunder. Any reference
in this Agreement to the Paying Agent shall include any co-paying agent unless
the context requires otherwise.

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

     SECTION 4.1 PRIOR NOTICE WITH RESPECT TO CERTAIN MATTERS.

     With respect to the following matters, the Trust shall not take action
unless (a) at least thirty (30) days before the taking of such action, the Owner
Trustee shall have notified the Insurer and the Rating Agencies in writing of
the proposed action and (b) the Insurer, if an Insurer Default shall not have
occurred and be continuing, shall have previously consented in writing thereto
and the Depositor shall not have (i) notified the Owner Trustee in writing prior
to the 30th day after such notice is given that it has withheld consent or (ii)
provided alternative written direction prior to the 30th day after such notice
is given:

               (A) the initiation of any claim or lawsuit by the Trust (except
          claims or lawsuits brought by the Servicer in connection with the
          collection of the Contracts) and the settlement of any action, claim
          or lawsuit brought by or against the Trust (except with respect to the
          aforementioned claims or lawsuits for collection by the Servicer of
          the Contracts);

               (B) the election by the Trust to file an amendment to the
          Certificate of Trust (unless such amendment is required to be filed
          under the Business Trust Statute);

                                       11
<Page>

               (C) the amendment of the Indenture by a supplemental indenture in
          circumstances where the consent of any Noteholder is required;

               (D) the appointment pursuant to the Indenture of a successor Note
          Registrar, Paying Agent for the Notes or Indenture Trustee or pursuant
          to this Agreement of a successor Certificate Registrar, or the consent
          to the assignment by the Note Registrar, Paying Agent for the Notes or
          Indenture Trustee or Certificate Registrar of its obligations under
          the Indenture or this Agreement, as applicable;

               (E) the consent to the calling or waiver of any default of any
          Transaction Document;

               (F) the consent to the assignment by the Indenture Trustee or
          Servicer of their respective obligations under any Transaction
          Document, unless permitted in the Transaction Documents;

               (G) cause the Trust to incur, assume or guaranty any indebtedness
          other than as set forth in this Agreement or the Transaction
          Documents;

               (H) possess Trust assets, or assign the Trust's right to
          property, for other than a Trust purpose;

               (I) cause the Trust to lend any funds to any entity, unless
          permitted in this Agreement or the Transaction Documents;

               (J) except as provided in ARTICLE IX hereof, dissolve, terminate
          or liquidate the Trust in whole or in part;

               (K) merge or consolidate the Trust with or into any other entity,
          or convey or transfer all or substantially all of the Trust's assets
          to any other entity;

               (L) do any act that conflicts with any other Transaction
          Document;

               (M) do any act which would make it impossible to carry on the
          ordinary business of the Trust as described in SECTION 2.3 hereof;

               (N) confess a judgment against the Trust; or

               (O) change the Trust's purpose and powers from those set forth in
          this Agreement.

     In addition, the Trust shall not commingle its assets with those of any
other entity. The Trust shall maintain its financial and accounting books and
records separately from those of any other entity. Except as expressly set forth
herein, the Trust shall not pay any indebtedness, operating expenses or
liabilities of any other entity. The Trust shall maintain appropriate

                                       12
<Page>

minutes or other records of all appropriate actions and shall maintain its
offices separate from the offices of the Depositor and the Servicer.

     SECTION 4.2 ACTION BY DEPOSITOR WITH RESPECT TO CERTAIN MATTERS.

     The Owner Trustee may not, except upon the occurrence of an Event of
Servicing Termination subsequent to the payment in full of the Notes and in
accordance with the written direction of the Insurer, if an Insurer Default
shall not have occurred and be continuing, or the Depositor (with the consent of
the Insurer, provided that an Insurer Default shall not have occurred and be
continuing) (a) remove the Servicer pursuant to 5.2 of the Servicing Agreement,
(b) appoint a successor Servicer pursuant to 5.2 of the Servicing Agreement,
(c) remove the Administrator pursuant to Section 9 of the Administration
Agreement, (d) appoint a successor Administrator pursuant to Section 9 of the
Administration Agreement or (e) sell the Contracts after the termination of the
Indenture, except as expressly provided in the Transaction Documents.

     SECTION 4.3 ACTION BY OWNER TRUSTEE WITH RESPECT TO BANKRUPTCY.

     (a) The Trust shall not, without the prior written consent of the Owner
Trustee, (i) institute any proceedings to adjudicate the Trust as bankrupt or
insolvent, (ii) consent to the institution of bankruptcy or insolvency
proceedings against the Trust, (iii) file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy with respect to the Trust, (iv) consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Trust or a substantial part of its property, (v) make any
assignment for the benefit of the Trust's creditors, (vi) admit in writing its
inability to pay its debts generally as they become due, or (vii) take any
action in furtherance of any of the foregoing (any of the above foregoing
actions, a "BANKRUPTCY ACTION"). In considering whether to give or withhold
written consent to any Bankruptcy Action by the Trust, the Owner Trustee, with
the consent of the Depositor (hereby given, which consent the Depositor believes
to be in the Trust's and its best interests), shall consider the interest of the
Noteholders and the Insurer in addition to the interests of the Trust and
whether the Trust is insolvent. The Owner Trustee shall have no duty to give
such written consent to Bankruptcy Action by the Trust if the Owner Trustee
shall not have been furnished (at the expense of the Person that requested that
such letter be furnished to the Owner Trustee) a letter from an independent
accounting firm of national reputation stating that in the opinion of such firm
the Trust is then insolvent.

     The Owner Trustee (as such and in its individual capacity) shall not be
personally liable to any Person on account of the Owner Trustee's good faith
reliance on the provisions of this Section or in connection with the Owner
Trustee's giving prior written consent to Bankruptcy Action by the Trust in
accordance herewith, or withholding such consent, in good faith, and neither the
Trust nor the Depositor shall have any claim for breach of fiduciary duty or
otherwise against the Owner Trustee (as such and in its individual capacity) for
giving or withholding its consent to any such Bankruptcy Action.

                                       13

<Page>

     (b) The parties hereto stipulate and agree that the Depositor has no power
to commence any Bankruptcy Action on the part of the Trust or to direct the
Owner Trustee to take any Bankruptcy Action on the part of the Trust. To the
extent permitted by applicable law, the consent of the Insurer (provided that no
Insurer Default has occurred and is continuing) and the Indenture Trustee shall
be obtained prior to taking any Bankruptcy Action by the Trust.

     (c) The provisions of this Section do not constitute an acknowledgment or
admission by the Trust, the Owner Trustee, or any creditor of the Trust that the
Trust is eligible to be a debtor under the United States Bankruptcy Code, 11
U.S.C. Section 101 et. Seq., as amended.

     SECTION 4.4 RESTRICTIONS ON INSURER'S POWER.

     Neither the Insurer nor the Depositor shall direct the Owner Trustee to
take or refrain from taking any action if such action or inaction would be
contrary to any obligation of the Trust or the Owner Trustee under this
Agreement or any of the other Transaction Documents or would be contrary to
SECTION 2.3, nor shall the Owner Trustee be obligated to follow any such
direction, if given.

                                   ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     SECTION 5.1 ESTABLISHMENT OF DEPOSITOR ACCOUNT.

     Pursuant to Section 3.1(c) of the Sale and Allocation Agreement, there
shall be maintained in the name of the Trust at an Eligible Institution a
segregated trust account designated as the Depositor Account (the "DEPOSITOR
ACCOUNT"). The Depositor Account shall be held in trust for the benefit of the
Depositor. Except as expressly provided in Section 3.1(c) of the Sale and
Allocation Agreement, the Depositor Account shall be under the sole dominion and
control of the Trust. All monies deposited from time to time in the Depositor
Account pursuant to the Sale and Allocation Agreement or the Indenture shall be
applied as provided in this Agreement, the Sale and Allocation Agreement and the
Indenture.

     SECTION 5.2 APPLICATION OF TRUST FUNDS.

     (a) On each Payment Date the Paying Agent shall, after payment of all
liabilities of the Trust, including any amounts owing to the Owner Trustee and
the Insurer under the Transaction Documents, distribute all amounts on deposit
in the Depositor Account to the Depositor.

     In addition, the Paying Agent shall, after payment of all liabilities of
the Trust, including any amounts owing to the Owner Trustee and the Insurer
under the Transaction Documents, promptly remit to the Depositor any amounts
received from the Indenture Trustee for the benefit of the Depositor in respect
of excess amounts from the Reserve Account pursuant to Section 3.6(d) of the
Sale and Allocation Agreement.

                                       14
<Page>

     (b) In the event that any withholding tax is imposed on any payment (or
allocations of income) by the Trust to the Depositor, such tax shall reduce the
amount otherwise distributable to the Depositor in accordance with this SECTION
5.2. The Owner Trustee and each Paying Agent is hereby authorized and directed
to retain (as directed in writing by the Administrator) from amounts otherwise
distributable to the Depositor sufficient funds for the payment of any such
withholding tax that is legally owed by the Trust (but such authorization shall
not prevent the Trust from contesting any such tax in appropriate proceedings,
and withholding payment of such tax, if permitted by law, pending the outcome of
such proceedings). The amount of any withholding tax imposed with respect to the
Depositor shall be treated as cash distributed to the Depositor at the time it
is withheld by the Trust and remitted to the appropriate taxing authority. If
there is a possibility that withholding tax is payable with respect to a
distribution, the Owner Trustee or the Paying Agent may, in its sole discretion,
withhold such amounts in accordance with this SECTION 5.2. If the Depositor
wishes to apply for a refund of any such withholding tax, the Owner Trustee
shall reasonably cooperate with the Depositor in making such claim so long as
the Depositor agrees to reimburse the Owner Trustee, as such and in its
individual capacity, for any expenses incurred.

     SECTION 5.3 METHOD OF PAYMENT.

     Subject to SECTION 9.1(c), distributions required to be made to the
Depositor on any Payment Date shall be made to the Depositor by wire transfer,
in immediately available funds, to the account (reasonably identified to the
Paying Agent in writing) of the Depositor at a bank or other entity having
appropriate facilities therefor. Notwithstanding the foregoing, the final
distribution in respect of the Depositor's Certificate (whether on the Final
Note Payment Date or otherwise) will be payable only upon presentation and
surrender of the Depositor's Certificate at the office of the Paying Agent.

     SECTION 5.4 NO SEGREGATION OF MONIES; NO INTEREST.

     Subject to SECTIONS 5.1 and 5.2, monies received by the Owner Trustee
hereunder need not be segregated in any manner except to the extent required by
law, the Indenture or the Sale and Allocation Agreement and may be deposited
under such general conditions as may be prescribed by law, and the Owner Trustee
shall not be personally liable for any interest thereon.

                                   ARTICLE VI

                     AUTHORITY AND DUTIES OF OWNER TRUSTEE

     SECTION 6.1 GENERAL AUTHORITY.

     The Owner Trustee shall have power and authority and is hereby authorized
and empowered in the name and on behalf of the Trust to execute and deliver the
Transaction Documents to which the Trust is to be a party and each certificate
or other document attached as an exhibit to or contemplated by the Transaction
Documents to which the Trust is to be a party and any amendment or other
agreement, in each case in such form as the Depositor shall

                                       15
<Page>

approve, as evidenced conclusively by the Owner Trustee's execution thereof and
the Depositor's execution of this Agreement, and to direct the Indenture Trustee
to authenticate and deliver Class A Notes and Class B Notes in the aggregate
principal amount of $159,036,000 and $4,819,000, respectively. In addition to
the foregoing, the Owner Trustee shall have power and authority and is hereby
authorized and empowered in the name and on behalf of the Trust to take all
actions required of or permitted to be taken by the Trust pursuant to the
Transaction Documents. The Owner Trustee shall have power and authority and is
hereby authorized and empowered in the name and on behalf of the Trust from time
to time to take such action on behalf of the Trust as is permitted by the
Transaction Documents and which the Servicer or the Administrator recommends
with respect to the Transaction Documents.

     SECTION 6.2 GENERAL DUTIES.

     It shall be the duty of the Owner Trustee to perform (or cause to be
performed) all of the duties expressly required to be performed by the Owner
Trustee under this Agreement and the other Transaction Documents to which the
Trust is a party. Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the Transaction Documents to the extent the Administrator or any other Person is
required in the Administration Agreement or any other Transaction Document to
perform any act or to discharge such duty of the Owner Trustee or the Trust
hereunder or under any other Transaction Document, and the Owner Trustee shall
not be held personally liable for the default or failure of the Administrator or
any other Person to carry out its obligations under the Administration Agreement
or any other Transaction Document.

     SECTION 6.3 ACTION UPON INSTRUCTION.

     (a) Subject to ARTICLE IV, and in accordance with the terms of the
Transaction Documents, the Depositor may, by written instruction, direct the
Owner Trustee in the management of the Trust.

     (b) Notwithstanding any other provision herein or in any other Transaction
Document, the Owner Trustee shall not be required to take any action hereunder
or under any Transaction Document if the Owner Trustee shall have reasonably
determined, or shall have been advised by counsel, that such action is likely to
result in personal liability on the part of the Owner Trustee or is contrary to
the terms hereof or of any other Transaction Document or is otherwise contrary
to law.

     (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement or any
other Transaction Document, the Owner Trustee shall promptly give notice (in
such form as shall be appropriate under the circumstances) to the Insurer (so
long as no Insurer Default has occurred and is continuing) and the Depositor
requesting instruction as to the course of action to be adopted, and to the
extent the Owner Trustee acts in good faith in accordance with any written
instruction of the Insurer or the Depositor received, the Owner Trustee shall
not be personally liable on account of such action to any Person. If the Owner
Trustee shall not have received appropriate written instruction within

                                       16
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ten (10) days of such notice (or within such shorter period of time as
reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from
taking such action as it shall deem to be in the best interests of the Depositor
and shall have no personal liability to any Person for such action or inaction.

     (d) In the event the Owner Trustee is unsure as to the application of any
provision of this Agreement or any other Transaction Document or any such
provision is ambiguous as to its application, or is, or appears to be, in
conflict with any other applicable provision, or in the event that this
Agreement permits any determination by the Owner Trustee or is silent or is
incomplete as to the course of action that the Owner Trustee is required or
permitted to take with respect to a particular set of facts, the Owner Trustee
may give notice (in such form as shall be appropriate under the circumstances)
to the Insurer (so long as no Insurer Default has occurred and is continuing)
and the Depositor requesting instruction and, to the extent that the Owner
Trustee acts or refrains from acting in good faith in accordance with any such
instruction received, the Owner Trustee shall not be personally liable, on
account of such action or inaction, to any Person. If the Owner Trustee shall
not have received appropriate instruction within ten (10) days of such notice
(or within such shorter period of time as reasonably may be specified in such
notice or may be necessary under the circumstances) it may, but shall be under
no duty to, take or refrain from taking such action as it shall deem to be in
the best interests of the Depositor and shall have no personal liability to any
Person for such action or inaction.

     SECTION 6.4 NO DUTIES EXCEPT AS SPECIFIED IN THIS AGREEMENT OR IN
INSTRUCTIONS.

     The Owner Trustee shall not have any duty or obligation to manage, make any
payment with respect to, register, record, sell, dispose of or otherwise deal
with the Owner Trust Estate, or to otherwise take or refrain from taking any
action under, or in connection with, this Agreement or any document contemplated
hereby, except the duties expressly required to be performed by the Owner
Trustee by the terms of this Agreement or in any document or written instruction
received by the Owner Trustee pursuant to SECTION 6.3, and no implied duties or
obligations shall be read into this Agreement or any other Transaction Document
against the Owner Trustee. The Owner Trustee shall have no responsibility for
filing any financing or continuation statement in any public office at any time
or otherwise to perfect or maintain the perfection of any security interest or
lien or to prepare or file any Securities and Exchange Commission filing for the
Trust or to record this Agreement or any other Transaction Document. The Owner
Trustee, in its individual capacity, shall, however, at its own cost and
expense, promptly take all action as may be necessary to discharge any lien
(other than the lien of the Indenture) on any part of the Owner Trust Estate
that results from actions by, or claims against, the Owner Trustee, in its
individual capacity, that are not related to the ownership or the administration
of the Owner Trust Estate or the Trust or the Owner Trustee's serving as trustee
of the Trust.

     SECTION 6.5 NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR INSTRUCTIONS.

     The Owner Trustee shall not manage, control, use, sell, dispose of or
otherwise deal with any part of the Owner Trust Estate except (a) in accordance
with the powers granted to and the authority conferred upon the Owner Trustee
pursuant to this Agreement, (b) in accordance with

                                       17
<Page>

the other Transaction Documents to which the Trust or the Owner Trust is a party
and (c) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to SECTION 6.3.

     SECTION 6.6 RESTRICTIONS.

     The Owner Trustee shall not take any action (a) that is inconsistent with
the purposes of the Trust set forth in SECTION 2.3 or (b) that, to the actual
knowledge of the Owner Trustee, would (i) adversely affect the treatment of the
Class A Notes as indebtedness for federal income or Delaware income or franchise
tax purposes, (ii) be deemed to cause a taxable exchange of the Class A Notes
for federal income or Delaware income or franchise tax purposes or (iii) cause
the Trust or any portion thereof to be taxable as an association or publicly
traded partnership taxable as a corporation for federal income or Delaware
income or franchise tax purposes.

     The Depositor shall not direct the Owner Trustee to take action that would
violate the provisions of this SECTION 6.6.

                                  ARTICLE VII

                           REGARDING THE OWNER TRUSTEE

     SECTION 7.1 ACCEPTANCE OF TRUSTS AND DUTIES.

     The Owner Trustee accepts the trusts hereby created and agrees to perform
the duties expressly required to be performed by the Owner Trustee hereunder.
The Owner Trustee also agrees to disburse all monies actually received by it
constituting part of the Owner Trust Estate upon the terms of this Agreement and
the other Transaction Documents to which the Trust is a party. The Owner Trustee
shall not be personally answerable or accountable hereunder or under any other
Transaction Document under any circumstances, except for liability to the Trust
and the Depositor (a) for its own willful misconduct, bad faith or gross
negligence or (b) in the case of the breach of any representation or warranty
contained in SECTION 7.3 expressly made by the Owner Trustee in its individual
capacity. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):

          (i)    the Owner Trustee shall not be personally liable for any error
     of judgment made in good faith by the Owner Trustee unless it is proved
     that the Owner Trustee was grossly negligent in ascertaining the pertinent
     facts;

          (ii)   the Owner Trustee shall not be personally liable with respect
     to any action taken or omitted to be taken in good faith by it in
     accordance with the provisions of this Agreement at the instructions of the
     Indenture Trustee, the Insurer, the Depositor, the Administrator or the
     Servicer or other instructions given in accordance with this Agreement or
     any other Transaction Document;

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<Page>

          (iii)  no provision of this Agreement or any other Transaction
     Document shall require the Owner Trustee to expend or risk its own funds or
     otherwise incur personal financial liability in the performance of any of
     its duties or in the exercise of any of its rights or powers hereunder or
     under any other Transaction Document if the Owner Trustee shall have
     reasonable grounds to believe that repayment of such funds or indemnity
     satisfactory to it in its individual capacity against such risk or
     liability is not reasonably assured or provided to it in its individual
     capacity;

          (iv)   under no circumstances shall the Owner Trustee be personally
     liable for indebtedness evidenced by or arising under any of the
     Transaction Documents, the Depositor's Certificate, the Notes or other
     indebtedness of the Trust, including the principal of and interest on the
     Notes;

          (v)    the Owner Trustee shall not be responsible or personally liable
     for or in respect of the validity or sufficiency of this Agreement or for
     the due execution hereof by the Depositor or for the form, character,
     genuineness, sufficiency, value or validity of any of the Owner Trust
     Estate or Transaction Documents and the Owner Trustee shall in no event
     assume or incur any personal liability, duty, or obligation to any
     Noteholder, the Depositor or any other Person other than as expressly
     provided for herein;

          (vi)   the Owner Trustee shall not be personally liable for the
     default or misconduct of the Servicer, the Administrator, the Depositor,
     the Indenture Trustee or any other Person under any of the Transaction
     Documents or otherwise, and the Owner Trustee shall have no duty to monitor
     or supervise any other trustee hereunder, if any, the Certificate Registrar
     (if other than the Owner Trustee), the Administrator, the Paying Agent (if
     other than the Owner Trustee), any agent or independent contractor of the
     Trust, any delegatee of any trustee or any other Person and the Owner
     Trustee (as such in its individual capacity) shall have no obligation or
     liability to perform the obligations of the Trust under this Agreement or
     the other Transaction Documents that are not expressly required to be
     performed by the Owner Trustee or that are required to be performed by the
     Administrator under the Administration Agreement, the Servicer under the
     Sale and Allocation Agreement or the Indenture Trustee under the Indenture;

          (vii)  the Owner Trustee shall be under no obligation to exercise any
     of the rights or powers vested in it by this Agreement or any other
     Transaction Document or to institute, conduct or defend any litigation
     under this Agreement or otherwise or in relation to this Agreement or any
     other Transaction Document at the request, order or direction of the
     Depositor or otherwise, unless the Owner Trustee (as such and in its
     individual capacity) has been offered security or indemnity satisfactory to
     it against the costs, expenses and liabilities that may be incurred by the
     Owner Trustee therein or thereby. The right of the Owner Trustee to perform
     any discretionary act enumerated in this Agreement or any other Transaction
     Document shall not be construed as a duty, and the Owner Trustee shall not
     be answerable or liable in its individual capacity except to the Trust or
     the Depositor for its own willful misconduct, bad faith or gross negligence
     in the performance of any such act;

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<Page>

          (viii) under no circumstances shall the Owner Trustee be personally
     liable for any representation, warranty, covenant, agreement or
     indebtedness of the Trust; and

          (ix)   in any capacity in which it may act (or refrain from acting)
     pursuant to this Agreement or the other Transaction Documents, the Owner
     Trustee (as such and in its individual capacity) shall be entitled to the
     benefits of the Trust Agreement.

     SECTION 7.2 FURNISHING OF DOCUMENTS.

     The Owner Trustee shall furnish to the Depositor promptly upon receipt of a
written request therefor, duplicates or copies of all reports, notices,
requests, demands, certificates, financial statements and any other instruments
furnished to the Owner Trustee under the Transaction Documents.

     SECTION 7.3 REPRESENTATIONS AND WARRANTIES.

     The Owner Trustee, in its individual capacity, hereby represents and
warrants to the Depositor that:

     (a) it is a banking corporation duly organized and validly existing in good
standing under the laws of the State of Delaware and has all requisite corporate
power and authority to execute, deliver and perform its obligations under this
Agreement;

     (b) it has taken all necessary action to authorize the execution and
delivery by it of this Agreement, and this Agreement will be executed and
delivered by one of its officers who is duly authorized to execute and deliver
this Agreement on its behalf; and

     (c) neither the execution nor the delivery by it of this Agreement, nor the
consummation by it of the transactions contemplated hereby nor compliance by it
with any of the terms or provisions hereof will constitute any default under its
charter documents or by-laws or any indenture, mortgage, contract, agreement or
instrument to which it is a party or by which any of its properties may be
bound.

     SECTION 7.4 RELIANCE; ADVICE OF COUNSEL.

     (a) The Owner Trustee may rely upon, shall be fully protected in relying
upon, and shall incur no personal liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper believed by it to be genuine
and believed by it to be signed by an appropriate Person. The Owner Trustee may
conclusively rely (and shall be fully protected in relying) upon an Opinion of
Counsel. The Owner Trustee may accept a certified copy of a resolution of the
board of directors or other governing body of any Person as conclusive evidence
that such resolution has been duly adopted by such body and that the same is in
full force and effect. As to any fact or matter the method of the determination
of which is not specifically prescribed herein, the Owner Trustee may for all
purposes hereof rely on a certificate, signed by the president or any vice

                                       20
<Page>

president or by the treasurer or other authorized officer of an appropriate
Person, as to such fact or matter and such certificate shall constitute full
protection to the Owner Trustee (as such and in its individual capacity) for any
action taken or omitted to be taken by it in good faith in reliance thereon.

     (b) In the exercise or administration of the trusts hereunder and in the
performance of its duties and obligations under this Agreement or the other
Transactions Documents, the Owner Trustee (i) may act directly or through its
agents or attorneys pursuant to agreements entered into with any of them, and
the Owner Trustee shall not be personally liable for the conduct or misconduct
of such agents or attorneys if such agents or attorneys shall have been selected
by the Owner Trustee with reasonable care and (ii) may consult with counsel,
accountants and other skilled Persons to be selected with reasonable care and
employed by it. The Owner Trustee shall not be personally liable for anything
done, suffered or omitted in good faith by it in accordance with the written
opinion or advice of any such counsel, accountants or other such Persons.

     SECTION 7.5 NOT ACTING IN INDIVIDUAL CAPACITY.

     Except as provided in this ARTICLE VII, in accepting the trusts hereby
created, Bankers Trust (Delaware), acts solely as Owner Trustee hereunder and
not in its individual capacity, and all Persons having any claim against the
Owner Trustee by reason of the transactions contemplated by this Agreement or
any other Transaction Document shall look only to the Owner Trust Estate for
payment or satisfaction thereof.

     SECTION 7.6 OWNER TRUSTEE NOT LIABLE FOR CONTRACTS.

     The recitals contained herein and in the Depositor's Certificate (other
than the signature and countersignature of the Owner Trustee on the Depositor's
Certificate) shall be taken as the statements of the Depositor, and the Owner
Trustee assumes no personal responsibility for the correctness thereof. The
Owner Trustee (as such or in its individual capacity) makes no representations
as to the validity or sufficiency of this Agreement, any other Transaction
Document or the Depositor's Certificate (other than the signature and
countersignature of the Owner Trustee on the Depositor's Certificate) or the
Notes, or of any Contract or related documents. The Owner Trustee shall at no
time have any responsibility or personal liability for or with respect to the
legality, validity and enforceability of any Contract, or the perfection and
priority of any security interest created by any Contract in any Financed
Vehicle or the maintenance of any such perfection and priority, or for or with
respect to the sufficiency of the Owner Trust Estate or its ability to generate
the payments to be distributed to the Depositor under this Agreement or the
Noteholders under the Indenture, including, without limitation, the existence,
condition and ownership of any Financed Vehicle, the existence and
enforceability of any insurance thereon, the existence and contents of any
Contract on any computer or other record thereof, the validity of the assignment
of any Contract to the Trust or any intervening assignment, the completeness of
any Contract, the performance or enforcement of any Contract, the compliance by
the Depositor or the Servicer with any warranty or representation made under any
Transaction Document or in any related document, or the accuracy of any such
warranty or

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<Page>

representation or any action of the Indenture Trustee, the Administrator or the
Servicer or any subservicer or any other Person taken in the name of the Owner
Trustee.

     SECTION 7.7 OWNER TRUSTEE MAY OWN NOTES.

     The Owner Trustee, in its individual or any other capacity, may become the
owner or pledgee of Notes and may deal with the Depositor, the Servicer, the
Administrator and the Indenture Trustee in banking transactions with the same
rights as it would have if it were not Owner Trustee.

                                  ARTICLE VIII

                          COMPENSATION OF OWNER TRUSTEE

     SECTION 8.1 OWNER TRUSTEE'S FEES AND EXPENSES.

     The Owner Trustee in its individual capacity shall receive as compensation
for its services hereunder such fees as have been separately agreed upon before
the date hereof between the Depositor and the Owner Trustee in its individual
capacity in accordance with the priorities set forth in Section 3.5(d) of the
Sale and Allocation Agreement, and the Owner Trustee shall be reimbursed in its
individual capacity by the Depositor in accordance with the priorities set forth
in Section 3.5(d) of the Sale and Allocation Agreement for its other reasonable
expenses hereunder, including the reasonable compensation, expenses and
disbursements of such agents, representatives, experts and counsel as the Owner
Trustee may employ in connection with the exercise and performance of its
rights, powers, authorities and duties.

     SECTION 8.2 INDEMNIFICATION.

     The Depositor shall be liable as prime obligor for, and shall indemnify,
from funds available to it pursuant to Section 3.5(d)(xii) of the Sale and
Allocation Agreement, the Owner Trustee in its individual capacity and its
successors, assigns, directors, officers, employees, agents and servants
(collectively, the "INDEMNIFIED PARTIES") from and against, any and all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs, expenses and disbursements (including reasonable
legal fees and expenses) of any kind and nature whatsoever (collectively,
"EXPENSES") which may at any time be imposed on, incurred by, or asserted
against the Owner Trustee in its individual capacity or any other Indemnified
Party in any way relating to or arising out of this Agreement, the other
Transaction Documents, the Owner Trust Estate, the administration of the Owner
Trust Estate or the action or inaction of the Owner Trustee hereunder; PROVIDED,
HOWEVER, that the Depositor shall not be liable for or required to indemnify an
Indemnified Party from and against Expenses arising or resulting from any of the
matters described in CLAUSES (a) and (b) of the third sentence of SECTION 7.1.
Neither the Owner Trustee nor the Depositor will in any event be entitled to
make any claim upon the Trust Property for the payment or reimbursement of any
Expenses except in accordance with the Transaction Documents. The indemnities
contained in this SECTION 8.2 and the other benefits, protections and immunities
of the Owner Trustee (as such and in its individual capacity)

                                       22
<Page>

under this Agreement shall survive the resignation or removal of the Owner
Trustee and the termination of this Agreement. Notwithstanding the foregoing
SECTION 8.2, Expenses shall be paid pursuant to this SECTION 8.2 solely from
amounts in excess of funds necessary to pay all outstanding interest and
principal due to the Noteholders in accordance with the priorities set forth in
Sections 3.5(d) of the Sale and Allocation Agreement and shall in any case be
nonrecourse to the Depositor and, to the extent funds are not so available to
pay any Expenses when due and owing, the claims relating thereto shall not
constitute a claim (as defined in Section 101 of Title 11 of the United States
Bankruptcy Code) against the Depositor but shall continue to accrue. Each party
hereto agrees that the payment of any claim of any such party in respect of
Expenses shall be subordinated to the payment in full of all outstanding
interest and principal due to the Noteholders.

     SECTION 8.3 PAYMENTS TO THE OWNER TRUSTEE.

     Any amounts paid to the Owner Trustee in its individual capacity pursuant
to this ARTICLE VIII shall be deemed not to be a part of the Owner Trust Estate
immediately after such payment.

                                   ARTICLE IX

                                  TERMINATION

     SECTION 9.1 TERMINATION OF TRUST AGREEMENT.

     (a) The Trust shall dissolve at the earlier of (i) the payment to the
Noteholders, the Depositor and the Insurer of all amounts required to be paid to
them pursuant to the terms of the Indenture, the Sale and Allocation Agreement,
the Insurance Agreement and ARTICLE V herein or (ii) the Payment Date next
succeeding the month which is one year after the maturity or other liquidation
of the last Contract and the disposition of any amounts received upon
liquidation of any property remaining in the Trust; PROVIDED, HOWEVER, in each
case, that the Policy shall have been terminated in accordance with its terms
and returned to the Insurer for cancellation. The bankruptcy, liquidation,
dissolution, death or incapacity of the Depositor shall not operate to terminate
or dissolve this Agreement or the Trust, entitle the Depositor's legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or Owner Trust Estate or otherwise affect the rights, obligations and
liabilities of the parties hereto.

     (b) The Depositor shall not be entitled to revoke or terminate the Trust.

     (c) Notice of any dissolution of the Trust, specifying the Payment Date
upon which the Depositor shall surrender the Depositor's Certificate to the
Paying Agent for payment of the final distribution and cancellation, shall be
given by the Owner Trustee by letter to the Depositor mailed within five (5)
Business Days of receipt by the Owner Trustee of written notice of such
dissolution from the Servicer, stating (i) the Payment Date upon or with respect
to which final payment of the Depositor's Certificate shall be made upon
presentation and surrender of the Depositor's Certificate at the office of the
Paying Agent therein specified, (ii) the amount of any

                                       23
<Page>

such final payment and (iii) that the Record Date otherwise applicable to such
Payment Date is not applicable, payments being made only upon presentation and
surrender of the Depositor's Certificate at the office of the Paying Agent
therein specified. The Owner Trustee shall give such notice to the Certificate
Registrar (if other than the Owner Trustee) and the Paying Agent at the time
such notice is given to the Depositor. Upon presentation and surrender of the
Depositor's Certificate, the Paying Agent shall cause to be distributed to the
Depositor amounts distributable on such Payment Date pursuant to SECTION 5.2. In
the event that the Depositor shall not surrender the Depositor's Certificate for
cancellation within six (6) months after the date specified in the above
mentioned written notice, the Owner Trustee shall give a second written notice
to the Depositor to surrender the Depositor's Certificate for cancellation and
receive the final distribution with respect thereto. If within one year after
the second notice the Depositor's Certificate shall not have been surrendered
for cancellation, the Owner Trustee may take appropriate steps, or may appoint
an agent to take appropriate steps, to contact the Depositor concerning
surrender of the Depositor's Certificate and the cost thereof shall be paid out
of the funds and other assets that shall remain subject to this Agreement.
Subject to applicable escheat laws, any funds remaining in the Trust after
exhaustion of such remedies shall be distributed by the Paying Agent to the
Depositor.

     (d) Upon the completion of the winding up of the Trust, the Owner Trustee,
at the written direction of the Administrator, shall cause the Certificate of
Trust to be canceled by filing a certificate of cancellation with the Secretary
of State in accordance with the provisions of Section 3810 of the Business Trust
Statute, and thereupon, this Agreement shall terminate.

     SECTION 9.2 NOTIFICATION REGARDING BANKRUPTCY OF THE DEPOSITOR.

     Promptly after the occurrence of any Insolvency Event with respect to the
Depositor, (a) the Depositor shall give the Owner Trustee, the Indenture Trustee
and the Insurer written notice of such Insolvency Event, (b) the Owner Trustee
shall, upon receipt of such written notice from the Depositor, give prompt
written notice to the Indenture Trustee of the occurrence of such event and
(c) the Indenture Trustee shall, upon receipt of such written notice from the
Depositor or the Owner Trustee, give prompt written notice to the Noteholders of
the occurrence of such event.

     SECTION 9.3 PREPAYMENT.

     (a) If, as of the last day of any Collection Period, the Pool Balance shall
be less than or equal to 15% of the sum of (a) the aggregate Principal Balances
of all of the Contracts as of the Initial Cutoff Date and (b) the sum, for each
Additional Contract Cutoff Date, of the Aggregate Principal Balances of all
Contracts that became Additional Contracts on such Additional Contract Cutoff
Date, the Depositor shall have the option to purchase on the following Payment
Date the Owner Trust Estate, other than the Collection Account, the Class A Note
Payment Account, the Class B Note Payment Account, the Prefunding Account and
the Reserve Account. To exercise such option, the Depositor shall notify in
writing the Owner Trustee, the Indenture Trustee and the Insurer no later than
fifteen (15) days prior to the Payment Date on which such repurchase is to be
effected (the "PREPAYMENT DATE") and shall deposit into

                                       24
<Page>

the Collection Account on the Business Day preceding such Payment Date an amount
equal to the aggregate Purchase Amount for the Contracts, PLUS the appraised
value of any other Trust Property, other than the Collection Account, the
Class A Note Payment Account, the Class B Note Payment Account, the Prefunding
Account or the Reserve Account, such value to be determined by an appraiser
mutually agreed upon by the Servicer, the Trust, the Indenture Trustee and the
Insurer; PROVIDED, HOWEVER, that the Depositor shall not be permitted to
exercise such option unless the amount to be deposited in the Collection Account
pursuant to this SECTION 9.3(A) is at least equal to the sum of the Class A Note
Balance and the Class B Note Balance PLUS all accrued but unpaid interest
(including any overdue interest) on the Class A Notes PLUS all amounts due the
Insurer under the Insurance Agreement and the Policy. Upon such payment, the
Depositor shall succeed to and own all interests in and to the Owner Trust
Estate other than the Collection Account, the Class A Note Payment Account, the
Class B Note Payment, the Prefunding Account and the Reserve Account. Such
payment amount, PLUS, to the extent necessary, all amounts in the Collection
Account, the Class A Note Payment Account, the Class B Note Payment Account, the
Prefunding Account and the Reserve Account, shall be used to make payments in
full to the Noteholders and the Insurer in the manner set forth in Article III
of the Sale and Allocation Agreement.

     (b) If, at the time the Depositor exercises its purchase option hereunder,
the Depositor's long-term unsecured debt has a rating lower than investment
grade by the Rating Agencies, the Depositor shall deliver to the Owner Trustee
and the Indenture Trustee on such Payment Date (i) a letter from an Independent
investment bank or an Independent public accountant to the effect that the price
paid by the Depositor for the Owner Trust Estate other than the Collection
Account, the Class A Note Payment Account, the Class B Note Payment Account, the
Prefunding Account and the Reserve Account at the time of transfer pursuant to
such purchase option represented a fair market price for such assets or (ii) a
letter from the Rating Agencies to the effect that no such letter is required.

                                   ARTICLE X

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

     SECTION 10.1 ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE.

     The Owner Trustee shall at all times (a) be a Person satisfying the
provisions of Section 3807(a) of the Business Trust Statute, (b) be authorized
to exercise corporate trust powers, (c) have a combined capital, surplus and
undivided profits of at least $50,000,000 and be subject to supervision or
examination by federal or state authorities and (d) have (or have a parent that
has) a long-term debt rating of investment grade by each of the Rating Agencies
or otherwise be acceptable to each of the Rating Agencies and the Insurer
(provided that no Insurer Default shall have occurred and be continuing). If
such Person shall publish reports of condition at least annually, pursuant to
law or to the requirements of the aforesaid supervising or examining authority,
then for the purpose of this SECTION 10.1 the combined capital and surplus of
such Person shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Owner
Trustee shall cease to be eligible in

                                       25
<Page>

accordance with the provisions of this SECTION 10.1, the Owner Trustee shall
resign immediately in the manner and with the effect specified in SECTION 10.2.

     SECTION 10.2 RESIGNATION OR REMOVAL OF OWNER TRUSTEE.

     The Owner Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice thereof to the Administrator and the
Insurer. Upon receiving such notice of resignation, the Administrator shall
promptly appoint a successor Owner Trustee, with the consent of the Insurer, by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Owner Trustee and one copy to the successor Owner
Trustee. If no successor Owner Trustee shall have been so appointed and have
accepted appointment within thirty (30) days after the giving of such notice of
resignation, the resigning Owner Trustee may petition any court of competent
jurisdiction at the expense of the Administrator for the appointment of a
successor Owner Trustee.

     If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of SECTION 10.1 and shall fail to resign after written
request therefor by the Administrator, or if at any time the Owner Trustee shall
be legally unable to act, or shall be adjudged bankrupt or insolvent, or a
receiver of the Owner Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Administrator may remove the Owner Trustee. If the
Administrator shall remove the Owner Trustee under the authority of the
immediately preceding sentence, the Administrator shall promptly appoint a
successor Owner Trustee, with the consent of the Insurer, by written instrument,
in duplicate, one copy of which instrument shall be delivered to the removed
Owner Trustee and one copy to the successor Owner Trustee.

     Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to this SECTION 10.2 shall not become effective
until either (a) acceptance of appointment by the successor Owner Trustee
pursuant to SECTION 10.3 and payment of all amounts owed to the outgoing Owner
Trustee in its individual capacity or (b) the Trust has been dissolved pursuant
to SECTION 9.1 hereof and all amounts received, if any, in connection with the
liquidation of the Trust shall have been distributed to the Noteholders and the
Depositor and all amounts owing to the Insurer have been paid. The Administrator
shall provide notice of such resignation or removal of the Owner Trustee to the
Indenture Trustee, the Depositor, the Noteholders and each of the Rating
Agencies.

     SECTION 10.3 SUCCESSOR OWNER TRUSTEE.

     Any successor Owner Trustee appointed pursuant to SECTION 10.2 shall
execute, acknowledge and deliver to the Administrator and to its predecessor
Owner Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of the predecessor Owner Trustee shall
become effective and such successor Owner Trustee, without any further act, deed
or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor under this Agreement, with like effect as

                                       26
<Page>

if originally named as Owner Trustee. The predecessor Owner Trustee shall, upon
payment of amounts owing to it in its individual capacity, deliver to the
successor Owner Trustee all documents, statements and monies held by it under
this Agreement, and the Administrator and the predecessor Owner Trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for fully and certainly vesting and confirming in the successor
Owner Trustee all such rights, powers, duties and obligations.

     No successor Owner Trustee shall accept appointment as provided in this
SECTION 10.3 unless, at the time of such acceptance, such successor Owner
Trustee shall be eligible pursuant to SECTION 10.1.

     Any successor Owner Trustee appointed pursuant to this SECTION 10.3 shall
file an amendment to the Certificate of Trust with the Secretary of State
reflecting the name and principal place of business of such successor in the
State of Delaware.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to
this SECTION 10.3, the Administrator shall mail notice of such appointment to
the Depositor, the Indenture Trustee, the Noteholders and the Rating Agencies.
If the Administrator shall fail to mail such notice within ten (10) days after
acceptance of appointment by the successor Owner Trustee, the successor Owner
Trustee shall cause such notice to be mailed at the expense of the
Administrator.

     SECTION 10.4 MERGER OR CONSOLIDATION OF OWNER TRUSTEE.

     (a) If the Owner Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to,
another Person, the resulting, surviving or transferee Person without any
further act shall be the successor Owner Trustee; PROVIDED, HOWEVER, that such
Person must be otherwise qualified and eligible under SECTION 10.1. The Owner
Trustee shall provide the Rating Agencies with prior written notice of any such
transaction.

     (b) If at the time such successor or successors by consolidation, merger or
conversion to the Owner Trustee shall succeed to the trusts created by this
Agreement a Depositor's Certificate shall have been authenticated but not
delivered, any such successor to the Owner Trustee may adopt the certificate of
authentication of any predecessor trustee and deliver the Depositor's
Certificate so authenticated, and in case at that time the Depositor's
Certificate shall not have been authenticated, such successor to the Owner
Trustee may authenticate the Depositor's Certificate either in the name of any
predecessor trustee or in the name of the successor to the Owner Trustee. In all
such cases such certificate shall have the full force which the Depositor's
Certificate or this Agreement provide that the certificate of the Owner Trustee
shall have.

     SECTION 10.5 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.

                                       27
<Page>

     (a) Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Owner Trust Estate or any Financed Vehicle may at the time be
located, the Administrator and the Owner Trustee acting jointly shall have the
power and authority (with the consent of the Insurer, provided that no Insurer
Default shall have occurred and be continuing) and may execute and deliver an
instrument to appoint one or more Persons approved by the Owner Trustee to act
as co-trustee or co-trustees, jointly with the Owner Trustee, or separate
trustee or separate trustees, of all or any part of the Owner Trust Estate, and
to vest in such Person or Persons, in such capacity and for the benefit of the
Depositor, such title to the Owner Trust Estate, or any part thereof, and,
subject to the other provisions of this SECTION 10.5, such powers, authority,
duties, obligations, rights and trusts as the Administrator and the Owner
Trustee may consider necessary or desirable. If the Administrator shall not have
joined in such appointment within fifteen (15) days after the receipt by it of a
request so to do, the Owner Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee under this Agreement shall be
required to meet the terms of eligibility as a successor trustee under SECTION
10.1 and no notice of the appointment of any co-trustee or separate trustee
shall be required under SECTION 10.3.

     (b) Each separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

          (i)   all rights, powers, duties and obligations conferred or imposed
     upon the Owner Trustee shall be conferred or imposed upon and exercised or
     performed by the Owner Trustee and such separate trustee or co-trustee
     jointly (it being understood that such separate trustee or co-trustee shall
     not be authorized to act separately without the Owner Trustee joining in
     such act), except to the extent that under any law of any jurisdiction in
     which any particular act or acts are to be performed the Owner Trustee
     shall be incompetent or unqualified to perform such act or acts, in which
     event such rights, powers, duties and obligations (including the holding of
     title to the Owner Trust Estate or any portion thereof in any such
     jurisdiction) shall be exercised and performed singly by such separate
     trustee or co-trustee, but solely at the direction of the Owner Trustee;

          (ii)  no trustee under this Agreement shall be personally liable by
     reason of any act or omission of any other trustee under this Agreement;
     and

          (iii) the Administrator and the Owner Trustee acting jointly may at
     any time accept the resignation of or remove any separate trustee or
     co-trustee.

     (c) Any notice, request or other writing given to the Owner Trustee shall
be deemed to have been given to each of the then separate trustees and
co-trustees as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this ARTICLE X. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Agreement, specifically including every

                                       28
<Page>

provision of this Agreement relating to the conduct of, affecting the liability
of, or affording protection to, the Owner Trustee. Each such instrument shall be
filed with the Owner Trustee and a copy thereof given to the Administrator.

     (d) Any separate trustee or co-trustee may at any time constitute the Owner
Trustee its agent or attorney-in-fact with full power and authority, to the
extent permitted by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.

                                   ARTICLE XI

                                  MISCELLANEOUS

     SECTION 11.1 SUPPLEMENTS AND AMENDMENTS.

     (a) This Agreement may be amended from time to time by the Depositor and
the Owner Trustee in its individual capacity, with prior written notice to the
Rating Agencies and the Insurer, without the consent of any of the Noteholders,
and with the prior written consent of the Insurer (if no Insurer Default shall
have occurred and be continuing) to cure any ambiguity, to correct or supplement
any provision herein that may be inconsistent with any other provision herein or
in the offering document used in connection with the initial sale of the Notes
or for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions in this Agreement; PROVIDED, HOWEVER, that
(i) such action shall not, as evidenced by an Opinion of Counsel satisfactory to
the Owner Trustee and the Indenture Trustee, adversely affect in any material
respect the interests of any Noteholder and (ii) an Opinion of Counsel shall be
furnished to the Owner Trustee and the Indenture Trustee to the effect that such
amendment (A) will not materially adversely affect the federal or any Applicable
Tax State income or franchise taxation of any outstanding Note or any Noteholder
and (B) will not cause the Trust to be taxable as a corporation for federal or
any Applicable Tax State income or franchise tax purposes.

     (b) This Agreement may be amended from time to time by the Depositor and
the Owner Trustee in its individual capacity, with prior written notice to the
Rating Agencies and the Insurer, with the prior written consent of the Insurer
(if no Insurer Default shall have occurred and be continuing) and with the
consent of the Holders (as defined in the Indenture) of Class A Notes evidencing
not less than 51% of the Class A Note Balance, for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, this Agreement or modifying in any manner the rights of the Noteholders;
PROVIDED, HOWEVER, that, subject to the express rights of the Insurer under the
Transaction Documents, no such amendment shall (i) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, or change the
allocation or priority of, collections of payments on the Contracts or
distributions that are required to be made on any Note, or change any Note Rate,
or (ii) reduce the aforesaid percentage of the Class A Note Balance required to
consent to any such amendment, without the

                                       29
<Page>

consent of all the Noteholders affected thereby or (iii) adversely affect the
ratings of the Notes by the Rating Agencies without the consent of the Holders
(as defined in the Indenture) of Class A Notes evidencing not less than 66 2/3%
of the aggregate principal amount of the then outstanding Notes; and, PROVIDED
FURTHER, that (A) such action shall not, as evidenced by an Opinion of Counsel
satisfactory to the Owner Trustee, the Insurer and the Indenture Trustee,
adversely affect in any material respect the interests of any Noteholder and
(B) an Opinion of Counsel shall be furnished to the Indenture Trustee, the
Insurer and the Owner Trustee to the effect that such amendment (1) will not
materially adversely affect the federal or any Applicable Tax State income or
franchise taxation of any outstanding Note or any Noteholder and (2) will not
cause the Trust to be taxable as a corporation for federal or any Applicable Tax
State income or franchise tax purposes.

     (c) Promptly after the execution of any such amendment or consent, the
Owner Trustee shall furnish, at the expense of the Depositor, written
notification of the substance of such amendment or consent to the Indenture
Trustee and each of the Rating Agencies.

     (d) It shall not be necessary for the consent of the Noteholders or the
Indenture Trustee pursuant to this SECTION 11.1 to approve the particular form
of any proposed amendment or consent, but it shall be sufficient if such consent
shall approve the substance thereof. The manner of obtaining such consents (and
any other consents provided for in this Agreement or in any other Transaction
Document) and of evidencing the authorization of the execution thereof shall be
subject to such reasonable requirements as the Owner Trustee may prescribe.

     (e) Promptly after the execution of any amendment to the Certificate of
Trust, the Owner Trustee shall file such amendment or cause such amendment to be
filed with the Secretary of State.

     (f) The Owner Trustee may, but shall not be obligated to, enter into any
such amendment that affects the Owner Trustee's own rights, duties, liabilities
or immunities (as such or in its individual capacity) under this Agreement or
otherwise.

     (g) Prior to the execution of any amendment to this Agreement or any
amendment to any other agreement to which the Trust is a party, the Owner
Trustee shall be entitled to receive and shall be fully protected in relying
upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement and that all conditions precedent in
this Agreement to the execution and delivery of such amendment have been
satisfied. Notwithstanding any other provision herein or elsewhere, no
amendment, supplement, waiver or consent of or with respect to any other
Transaction Document that affects any right, power, authority, duty, benefit,
protection, privilege, immunity or indemnity of the Owner Trustee (as such or in
its individual capacity) shall be binding on the Owner Trustee (as such or in
its individual capacity) unless the Owner Trustee (as such and in its individual
capacity) shall have expressly consented thereto in writing.

     SECTION 11.2 NO LEGAL TITLE TO OWNER TRUST ESTATE IN THE DEPOSITOR.

                                       30
<Page>

     The Depositor shall not have legal title to any part of the Owner Trust
Estate. The Depositor shall be entitled to receive distributions with respect to
its undivided beneficial interest therein only in accordance with ARTICLES V and
IX. No transfer, by operation of law or otherwise, of any right, title or
interest of the Depositor in and to its beneficial interest in the Owner Trust
Estate shall operate to terminate or dissolve this Agreement, the Trust, or the
trusts hereunder or entitle any transferee to an accounting or to the transfer
to it of legal title to any part of the Owner Trust Estate.

     SECTION 11.3 LIMITATION ON RIGHTS OF OTHERS.

     The provisions of this Agreement are solely for the benefit of the Owner
Trustee (as such and in its individual capacity), the Insurer, the Depositor,
the Administrator, the Servicer, the Indemnified Parties and, to the extent
expressly provided herein, the Indenture Trustee and the Noteholders, and
nothing in this Agreement or the Depositor's Certificate, whether express or
implied, shall be construed to give to any other Person any legal or equitable
right, remedy or claim in the Owner Trust Estate or under or in respect of this
Agreement or any covenants, conditions or provisions contained herein.

     SECTION 11.4 NOTICES.

     All demands, requests, directions, instructions, notices and other
communications under this Agreement shall be in writing, personally delivered,
sent by telecopier, overnight courier or mailed by certified mail, return
receipt requested, and shall be deemed to have been duly given upon receipt

(a) in the case of the Owner Trustee, at the Corporate Trust Office, with a copy
to Bankers Trust Company, 4 Albany Street, 10th Floor, New York, New York 10006,
Attention: Structured Finance Group (b) in the case of the Depositor, at the
following address: 675 Bering Drive, Suite 710, Houston, Texas 77057, (c) in the
case of the Indenture Trustee, at the following address: Sixth Street and
Marquette Avenue MAC N9311-161, Minneapolis, Minnesota 55479, Attention:
Corporate Trust Services - Asset-Backed Administration, (d) in the case of
Moody's, at the following address: Moody's Investors Service, Inc., ABS
Monitoring Department, 99 Church Street, New York, New York 10007, (e) in the
case of S&P, at the following address: Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc., 55 Water Street, 43rd Floor, New
York, New York 10041, Attention: Asset Backed Surveillance Department, and
(f) in the case of the Insurer, at the following address: MBIA Insurance
Corporation, 113 King Street, Armonk, New York 10504, Attention: Insured
Portfolio Management, Structured Finance.

     SECTION 11.5 SEVERABILITY.

     If any provision of this Agreement or the Depositor's Certificate shall be
held for any reason whatsoever invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions of this Agreement and
the Depositor's Certificate shall not in any way be affected or impaired
thereby.

                                       31
<Page>

     SECTION 11.6 SEPARATE COUNTERPARTS.

     This Agreement may be executed in any number of counterparts, each of which
counterparts when so executed shall be deemed to be an original, and all of
which counterparts shall together constitute but one and the same instrument.

     SECTION 11.7 SUCCESSORS AND ASSIGNS.

     All covenants and agreements in this Agreement shall be binding upon, and
inure to the benefit of the Depositor, the Insurer and the Owner Trustee (as
such and in its individual capacity) and its successors as herein provided.

     SECTION 11.8 COVENANTS OF THE DEPOSITOR.

     The Depositor shall not at any time institute against the Trust, or join in
any institution against the Trust of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Notes, this Agreement or any of the other
Transaction Documents.

     SECTION 11.9 NO PETITION.

     The Owner Trustee (not in its individual capacity but solely as Owner
Trustee), by entering into this Agreement and the Depositor, the Indenture
Trustee and each Noteholder, by accepting the benefits of this Agreement, hereby
covenant and agree and shall be deemed to covenant and agree that they will not
at any time institute against or knowingly or intentionally cooperate or
encourage any other Person in instituting against, the Depositor or the Trust,
in any, bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, this Agreement or any of the other Transaction Documents.

     SECTION 11.10 HEADINGS.

     The Article and Section headings herein and the Table of Contents are for
convenience only and shall not define or limit any of the terms or provisions
hereof.

SECTION 11.11 GOVERNING LAW.

     This Agreement shall be construed in accordance with the laws of the State
of Delaware and the obligations, rights and remedies of the parties under this
Agreement shall be determined in accordance with such laws.

                                       32
<Page>

     SECTION 11.12 AMENDMENT OF TRUST AGREEMENT.

     This Agreement amends, restates and replaces in its entirety the Original
Trust Agreement.

     SECTION 11.13 OWNER TRUSTEE PRESUMPTION.

     For all purposes, the Owner Trustee shall be entitled to presume (and shall
be fully protected in presuming) that no Insurer Default has occurred or exists
unless a Responsible Officer of the Owner Trustee has obtained actual knowledge
or received written notice to the contrary.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       33
<Page>

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

                                       FIRST INVESTORS AUTO FUNDING CORPORATION,
                                       as Depositor

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

                                       BANKERS TRUST (DELAWARE),
                                       as Owner Trustee

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

<Page>

STATE OF NORTH CAROLINA   )
                          )  ss. :
COUNTY OF                 )

     The foregoing instrument was acknowledged before me this ____ day of
January, 2002, by Bennie H. Duck, as Vice President - Treasurer of FIRST
INVESTORS AUTO FUNDING CORPORATION.

                            ----------------------------------------------------
                            Notary Public in and for the State of North Carolina

[SEAL]

My commission expires:  August 29, 2005

<Page>

STATE OF NORTH CAROLINA   )
                          )  ss. :
COUNTY OFUNION            )

     The foregoing instrument was acknowledged before me this ____ day of
January, 2002, by ____________________, as ____________________ of BANKERS TRUST
(DELAWARE), a Delaware banking corporation.

                            ----------------------------------------------------
                            Notary Public in and for the State of
                                                                  --------------

[SEAL]

My commission expires: ____________

<Page>

                                    Exhibit A

                         Form of Depositor's Certificate

                                (to be attached)

<Page>

                                    Exhibit B

                              Certificate of Trust

                             (Please see attached.)

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