Document:

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                                                                    EXHIBIT 10.4

                          SALE AND SERVICING AGREEMENT

                                     between

                       ONYX ACCEPTANCE OWNER TRUST 2002-C
                                   as Issuer,

                      ONYX ACCEPTANCE FINANCIAL CORPORATION
                                   as Seller,

                           ONYX ACCEPTANCE CORPORATION
                                   as Servicer

                               JPMORGAN CHASE BANK
                     as Indenture Trustee and as Trust Agent

                            Dated as of July 1, 2002

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
ARTICLE I DEFINITIONS....................................................................... 1
   SECTION 1.01     Definitions............................................................. 1
   SECTION 1.02     Usage of Terms..........................................................20
   SECTION 1.03     Section References......................................................20
   SECTION 1.04     Calculations............................................................20
   SECTION 1.05     Accounting Terms........................................................20
ARTICLE II CONVEYANCE OF CONTRACTS; REPRESENTATIONS AND WARRANTIES OF THE SELLER............21
   SECTION 2.01     Conveyance of Contracts.................................................21
   SECTION 2.02     Representations and Warranties of the Seller............................26
   SECTION 2.03     Repurchase of Certain Contracts.........................................37
   SECTION 2.04     Custody of Contract Files...............................................38
   SECTION 2.05     Duties of Servicer Relating to the Contracts............................39
   SECTION 2.06     Instructions; Authority to Act..........................................41
   SECTION 2.07     Indemnification.........................................................41
   SECTION 2.08     Effective Period and Termination........................................42
   SECTION 2.09     Nonpetition Covenant....................................................42
   SECTION 2.10     Collecting Title Documents Not Delivered at the Closing Date............43
ARTICLE III ADMINISTRATION AND SERVICING OF CONTRACTS.......................................43
   SECTION 3.01     Duties of Servicer......................................................43
   SECTION 3.02     Collection of Contract Payments.........................................46
   SECTION 3.03     Realization Upon Contracts..............................................46
   SECTION 3.04     Insurance...............................................................47
   SECTION 3.05     Maintenance of Security Interests in Financed Vehicles..................47
   SECTION 3.06     Covenants, Representations and Warranties of Servicer...................47
   SECTION 3.07     Purchase of Contracts Upon Breach By Servicer...........................49
   SECTION 3.08     Servicing Compensation..................................................50
   SECTION 3.09     Reporting by the Servicer...............................................50
   SECTION 3.10     Annual Statement as to Compliance.......................................53
   SECTION 3.11     Annual Independent Certified Public Accountant's Report.................54
   SECTION 3.12     Access to Certain Documentation and Information Regarding Contracts.....54
   SECTION 3.13     Fidelity Bond...........................................................54
   SECTION 3.14     Indemnification; Third Party Claims.....................................54
   SECTION 3.15     Reports to Noteholders and the Rating Agencies..........................55
   SECTION 3.16     Access to List of Noteholders' Names and Addresses......................55
ARTICLE IV DISTRIBUTIONS; SPREAD ACCOUNT; STATEMENTS TO
NOTEHOLDERS.................................................................................56
   SECTION 4.01     Establishment of Trust Accounts.........................................56
   SECTION 4.02     Collections; Transfers to Payahead Account; Realization Upon Policy;
   Net Deposits; Transfers to Payment Account...............................................58
   SECTION 4.03     Distributions...........................................................59
   SECTION 4.04     Spread Account..........................................................61
</TABLE>

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<TABLE>
<S>                                                                                         <C>
   SECTION 4.05     Statements to Noteholders...............................................63
   SECTION 4.06     Capitalized Interest Account............................................65
   SECTION 4.07     Prefunding Account......................................................65
   SECTION 4.08     Requirements Relating to Prefunding Account.............................66
ARTICLE V THE SELLER........................................................................67
   SECTION 5.01     Liability of Seller.....................................................67
   SECTION 5.02     Merger or Consolidation of, or Assumption of the Obligations of,
   Seller; Certain Limitations..............................................................67
   SECTION 5.03     Limitation on Liability of Seller and Others............................67
   SECTION 5.04     Seller Not to Resign....................................................67
   SECTION 5.05     Seller May Own Notes and Residual Interest Instruments..................67
ARTICLE VI THE SERVICER.....................................................................68
   SECTION 6.01     Liability of Servicer; Indemnities......................................68
   SECTION 6.02     Corporate Existence; Status as Servicer; Merger.........................69
   SECTION 6.03     Performance of Obligations..............................................70
   SECTION 6.04     Servicer Not to Resign; Assignment......................................70
   SECTION 6.05     Limitation on Liability of Servicer and Others..........................71
ARTICLE VII DEFAULT.........................................................................71
   SECTION 7.01     Events of Default.......................................................71
   SECTION 7.02     Trustee to Act; Appointment of Successor................................73
   SECTION 7.03     Notification to Noteholders and Residual Interestholders................74
   SECTION 7.04     Waiver of Past Defaults.................................................74
   SECTION 7.05     Insurer Direction of Insolvency Proceedings.............................75
ARTICLE VIII TERMINATION....................................................................75
   SECTION 8.01     Optional Purchase of All Trust Property; Satisfaction and Discharge of
                    the Indenture...........................................................75
   SECTION 8.02     Transfer to the Insurer.................................................76
ARTICLE IX MISCELLANEOUS....................................................................76
   SECTION 9.01     Amendment...............................................................76
   SECTION 9.02     Protection of Title to Trust Property...................................77
   SECTION 9.03      Governing Law..........................................................79
   SECTION 9.04     Notices.................................................................79
   SECTION 9.05     Severability of Provisions..............................................80
   SECTION 9.06     Assignment..............................................................80
   SECTION 9.07     Third Party Beneficiaries...............................................81
   SECTION 9.08     Certain Matters Relating to the Insurer.................................81
   SECTION 9.09     Headings................................................................81
   SECTION 9.10     Assignment by Issuer....................................................81
   SECTION 9.11     Limitation of Liability of Owner Trustee and Indenture  Trustee.........82
   SECTION 9.12     Acknowledgment of Parties; Insurer Defense Costs........................82
</TABLE>

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                                    EXHIBITS

Schedule I-A   -   Schedule of Initial Contracts
Schedule I-B   -   Schedule of Subsequent Contracts
Schedule II    -   Location and Account Numbers of Trust Accounts
Exhibit A      -   Form of Appointment of Custodian
Exhibit B      -   Form of Policy
Exhibit C-1    -   Form of Transfer Certificate
Exhibit C-2    -   Form of Prefunding Closing Date Certificate

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        This SALE AND SERVICING AGREEMENT, dated as of July 1, 2002 (this
"AGREEMENT"), is between Onyx Acceptance Owner Trust 2002-C (the "ISSUER" or the
"TRUST"), Onyx Acceptance Financial Corporation (the "SELLER"), Onyx Acceptance
Corporation ("ONYX" or, in its capacity as servicer, the "SERVICER" or, in its
capacity as custodian, the "CUSTODIAN") and JPMorgan Chase Bank, as the
Indenture Trustee on behalf of the Noteholders (in such capacity, the "INDENTURE
TRUSTEE"), and as the Trust Agent on behalf of the Owner Trustee (in such
capacity, the "TRUST AGENT") .

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

                                    ARTICLE I
                                   DEFINITIONS

        SECTION 1.01 DEFINITIONS.

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

        "ACCELERATED PRINCIPAL COMMENCEMENT DATE" means the first Distribution
Date on which (i) the Pool Balance as of such Distribution Date is equal to or
less than 15% of the Original Pool Balance and (ii) the amount of cash on
deposit in the Spread Account together with the other components of the Spread
Account is equal to or greater than the Spread Account Maximum (after giving
effect to the distribution pursuant to Section 4.03(viii) of this Agreement on
such Distribution Date).

        "ACCELERATED PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date occurring on or after the Accelerated Principal Commencement
Date, the amount which would remain on deposit in the Payment Account for such
Distribution Date after giving effect to distributions pursuant to Section
4.03(i) through (viii) of this Agreement without regard to the inclusion of such
amount as part of the Note Principal Distributable Amount. The Accelerated
Principal Distributable Amount shall be included in the Note Principal
Distributable Amount until all of the Notes have been paid in full.

        "ACTUARIAL CONTRACT" means a Contract pursuant to which the allocation
of each payment between interest and principal is calculated using the Actuarial
Method.

        "ACTUARIAL METHOD" means the method of allocating principal and interest
payments on a Contract whereby amortization of the Contract is determined over a
series of fixed level payment monthly installments, and each monthly
installment, including the monthly installment representing the final payment on
the Contract, consists of an amount of interest equal to 1/12 of the APR of the
Contract multiplied by the unpaid principal balance of the Contract, and an
amount of principal equal to the remainder of the monthly payment.

        "AFFILIATE" of any specified Person means any other Person controlling
or controlled by or under common control with such specified Person. For the
purposes of this definition, "control" when used with respect to any specified
Person means the power to direct the

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management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"controlling" or "controlled" have meanings correlative to the foregoing.

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

        "APPOINTMENT OF CUSTODIAN" means the letter agreement between the
Indenture Trustee, the Insurer and the Servicer substantially in the form
attached hereto as Exhibit A.

        "APR" of a Contract means the annual percentage rate used to determine
the total interest expected to be charged over the term of a Contract as of its
inception, as shown on such Contract.

        "BASIC DOCUMENTS" shall have the meaning specified in the Indenture.

        "BLANKET INSURANCE POLICY" means the Creditors Comprehensive Single
Interest Insurance Policy covering losses with respect to the Contracts, which
policy has been issued by Great American Insurance Company and the Seller's
rights in which, with respect to the Contracts, have been validly assigned to
the Indenture Trustee acting on behalf of the Trust.

        "BUSINESS DAY" means any day other than a Saturday, a Sunday or other
day on which commercial banking institutions or savings associations located in
Los Angeles, California or New York, New York are authorized or obligated by
law, regulation, executive order or governmental decree to be closed.

        "CALCULATION DAY" means the last day of each calendar month.

        "CAPITALIZED INTEREST ACCOuNT" means the account designated as such and
established pursuant to Section 4.01 and maintained pursuant to Section 4.06.

        "CAPITALIZED INTEREST AMOUNT" means, with respect to each Distribution
Date following a Collection Period during which amounts are on deposit in the
Prefunding Account, an amount equal to the greater of:

                (a) the sum of the Note Interest Distributable Amount for such
        Distribution Date, plus the sum of the fees payable to the Owner
        Trustee, the Indenture Trustee and the Trust Agent and the premium
        payable to the Insurer for such Distribution Date, in each case,
        allocable to the balance in the Prefunding Account at the beginning of
        the related Collection Period, on a pro rata basis, minus the earnings
        received by the Indenture Trustee on behalf of the Trust during the
        related Collection Period from investment of the funds on deposit in the
        Prefunding Account; and

                (b) the amount, if any, by which (i) the sum of the Servicing
        Fees, the Note Interest Distributable Amount, the fees payable to the
        Owner Trustee, the Indenture

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        Trustee and the Trust Agent and the premium payable to the Insurer for
        such Distribution Date exceeds (ii) Net Collections plus the earnings
        received by the Indenture Trustee on behalf of the Trust during the
        related Collection Period from investment of the funds on deposit in the
        Prefunding Account.

        "CERTIFICATE REGISTER" shall have the meaning specified in the Trust
Agreement.

        "CLASS" means all Notes whose form is identical except for variation in
denomination, principal amount or owner.

        "CLASS A-1 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution
Date occurring in June 2003.

        "CLASS A-1 NOTE" means any Class A-1 Note in the form attached to the
Indenture as Exhibit B.

        "CLASS A-1 RATE" means 1.86% per annum.

        "CLASS A-2 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution
Date occurring in February 2005.

        "CLASS A-2 NOTE" means any Class A-2 Note in the form attached to the
Indenture as Exhibit C.

        "CLASS A-2 RATE" means 2.40% per annum.

        "CLASS A-3 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution
Date occurring in September 2006.

        "CLASS A-3 NOTE" means any Class A-3 Note in the form attached to the
Indenture as Exhibit D.

        "CLASS A-3 RATE" means 3.29% per annum.

        "CLASS A-4 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution
Date occurring in April 2009.

        "CLASS A-4 NOTE" means any Class A-4 Note in the form attached to the
Indenture as Exhibit E.

        "CLASS A-4 RATE" means 4.07% per annum.

        "CLASS A NOTES" means the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes.

        "CLEARING ACCOUNT" means Account No. 4159359173 in the name of the
Seller maintained at Wells Fargo Bank, N.A.

        "CLOSING DATE" means July 17, 2002.

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        "COLLECTION ACCOUNT" means the account established and maintained as
such pursuant to Section 4.01.

        "COLLECTION PERIOD" means, with respect to any Distribution Date, the
calendar month preceding the month in which such Distribution Date occurs;
provided that with respect to Liquidated Contracts, the Collection Period will
be the period from but excluding the sixth Business Day preceding the
immediately preceding Distribution Date to and including the sixth Business Day
preceding such Distribution Date. With respect to the first Distribution Date
the "Collection Period" for Liquidated Contracts shall be the period from and
including the related Cut-Off Date to and including the sixth Business Day
preceding such first Distribution Date.

        "CONTRACT" means each retail installment sales contract and security
agreement or installment loan agreement and security agreement and all proceeds
thereof and payments thereunder, which contract or agreement has been executed
by an Obligor and pursuant to which such Obligor purchased or financed the
Financed Vehicle described therein, agreed to pay the deferred purchase price
(i.e., the purchase price net of any down payment) or amount borrowed, together
with interest, as therein provided in connection with such purchase or loan,
granted a security interest in such Financed Vehicle, and undertook to perform
certain other obligations as specified in such contract or agreement. Each
Contract shall have been (i) originated by a Dealer and assigned to Onyx in
accordance with the assignment provisions set forth therein, (ii) subsequently
conveyed by Onyx to the Seller pursuant to the Purchase Agreement and (iii)
subsequently conveyed by the Seller to the Issuer pursuant to this Agreement. As
used herein, "Contracts" means the Initial Contracts, the Subsequent Contracts
and the Prefunded Contracts.

        "CONTRACT DOCUMENTS" means, with respect to each Contract, (a) the
Contract and the original credit application fully executed by the Obligor
thereunder; (b) either (i) the original Title Document for the related Financed
Vehicle or a duplicate copy thereof issued or certified by the Registrar of
Titles which issued the original thereof (or, with respect to certain of the
Financed Vehicles, evidence of the electronic Title Document), together with
evidence of perfection of the security interest in the related Financed Vehicle
granted by such Contract, as determined by the Servicer to be permitted or
required to perfect such security interest under the laws of the applicable
jurisdiction, or (ii) written evidence that the Title Document for such Financed
Vehicle showing Onyx as first lienholder has been applied for; (c) any
agreement(s) modifying the Contract (including, without limitation, any
extension agreement(s)); (d) any documents evidencing or related to any
insurance policy with respect to a Financed Vehicle and (e) any documents
specifically relating to the Obligor or the Financed Vehicle. The documents
referred to above, other than the Contracts, to the extent expressly permitted
by the Insurer in writing, may be maintained in microfiche or electronic form.

        "CONTRACT FILES" means all papers and computerized records customarily
kept by the Servicer in servicing contracts and loans comparable to the
Contracts.

        "CONTRACT NUMBER" means, with respect to any Contract included in the
Trust, the number assigned to such Contract by the Servicer, which number is set
forth in the related Schedule of Contracts.

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        "CORPORATE TRUST OFFICE" means 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 450 West 33rd Street, 14th Floor, New York, New York 10001,
Attention: Institutional Trust Services/Structured Finance Services -- Onyx
Acceptance Owner Trust 2002-C; or at such other address as the Indenture Trustee
may designate from time to time by notice to the Noteholders, the Insurer, the
Servicer and the Seller.

        "CRAM DOWN LOSS" means, with respect to a Contract if a court of
appropriate jurisdiction in an insolvency proceeding shall have issued an order
reducing the amount owed on such Contract or otherwise modifying or
restructuring the scheduled payments to be made on such Contract, an amount
equal to (i) the excess of the Principal Balance of such Contract immediately
prior to such order over the Principal Balance of such Contract as so reduced
and/or (ii) if such court shall have issued an order reducing the effective rate
of interest on such Contract, the excess of the Principal Balance of such
Contract immediately prior to such order over the net present value (using as
the discount rate the higher of the annual percentage rate on such Contract or
the rate of interest, if any, specified by the court in such order) of the
scheduled payments as so modified or restructured. A Cram Down Loss shall be
deemed to have occurred on the date of issuance of such order.

        "CUSTODIAN" means Onyx until such time, if any, a Successor Custodian is
appointed and thereafter means such Successor Custodian.

        "CUT-OFF DATE" means, as applicable, (i) the Initial Cut-Off Date, with
respect to the Initial Contracts, (ii) the Subsequent Cut-Off Date, with respect
to the Subsequent Contracts or (iii) the Prefunding Cut-Off Date with respect to
the Prefunded Contracts.

        "DEALER" means the seller of a Financed Vehicle, which seller originated
and assigned the related Contract.

        "DEFAULT" means any occurrence which with the giving of notice or the
lapse of time or both would become a Servicer Default.

        "DEFAULTED CONTRACT" means, with respect to any Collection Period, a
Contract (i) which is, at the end of such Collection Period, delinquent in the
amount of at least two monthly installments of Monthly P&I or (ii) with respect
to which the related Financed Vehicle has been repossessed or repossession
efforts with respect to the related Financed Vehicle have been commenced.

        "DEFICIENCY AMOUNT" means as of any Distribution Date, the amount by
which (i) the sum of the amounts set forth in Section 4.03(i) though (iv) with
respect to such Distribution Date exceeds (ii) the amount of Net Collections
(plus amounts transferred from the Prefunding Account representing earnings from
investments therein and amounts transferred from the Capitalized Interest
Account, in each case to the Payment Account) available with respect to such
Distribution Date and the amount on deposit in the Spread Account as of such
Distribution Date.

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        "DEFICIENCY NOTICE" means, with respect to any Distribution Date, the
notice delivered pursuant to Section 4.02(c) by the Servicer to the Indenture
Trustee, with a copy to the Insurer and the Trust Agent.

        "DEFINITIVE NOTES" means Notes issued in fully registered, certificated
form to Noteholders.

        "DEPOSITOR" means the Seller in its capacity as Depositor under the
Trust Agreement, and its successors.

        "DISTRIBUTION DATE" means the 15th day of each month or if such date
shall not be a Business Day, the following Business Day, commencing on August
15, 2002.

        "DISTRIBUTION DATE STATEMENT" shall have the meaning specified in
Section 3.09(a).

        "DUE DATE" means, as to any Contract, the date upon which an installment
of Monthly P&I is due.

        "ELIGIBLE ACCOUNT" means (i) a trust account that is either (a)
maintained by the Indenture Trustee, (b) maintained with a depository
institution or trust company the commercial paper or other short-term debt
obligations of which have credit ratings from Standard & Poor's at least equal
to "A-1" and from Moody's equal to "P-1," which account is fully insured up to
applicable limits by the Federal Deposit Insurance Corporation or (c) maintained
with a depository institution acceptable to the Insurer, as evidenced by a
letter from the Insurer to that effect or (ii) a general ledger account or
deposit account at a depository institution acceptable to the Insurer, as
evidenced by a letter from the Insurer to that effect.

        "ELIGIBLE INVESTMENTS" means any one or more of the following
obligations or securities, all of which shall be denominated in United States
dollars:

                (a) direct obligations of, and obligations fully guaranteed as
        to timely payment of principal and interest by, the United States of
        America or any agency or instrumentality of the United States of America
        the obligations of which are backed by the full faith and credit of the
        United States of America and, to the extent, at the time of investment,
        acceptable to the Insurer and each Rating Agency for securities having a
        rating equivalent to the rating of the Notes at the Closing Date, the
        direct obligations of, or obligations fully guaranteed by, the Federal
        Home Loan Mortgage Corporation and the Federal National Mortgage
        Association;

                (b) demand and time deposits in, certificates of deposit of,
        banker's acceptances issued by, or federal funds sold by any depository
        institution or trust company (including the Indenture Trustee or the
        Owner Trustee) incorporated under the laws of the United States of
        America or any State and subject to supervision and examination by
        Federal and/or State banking authorities, so long as at the time of such
        investment or contractual commitment providing for such investment
        either (i) the long-term, unsecured debt obligations of such depository
        institution or trust company have credit ratings from Standard & Poor's
        at least equal to "AA-" and from Moody's at least equal to "Aa2" or

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        (ii) such depository institution is acceptable to the Insurer as
        evidenced by a letter from the Insurer to the Indenture Trustee;

                (c) repurchase obligations with respect to (i) any security
        described in clause (a) above or (ii) any other security issued or
        guaranteed as to timely payment of principal and interest by an agency
        or instrumentality of the United States of America, in either case
        entered into with any depository institution or trust company (including
        the Indenture Trustee and the Owner Trustee), acting as principal,
        described in clause (b) above;

                (d) 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 which at the time of such investment or
        contractual commitment providing for such investment have long-term,
        unsecured debt obligations rated by Standard & Poor's "AA-" or better
        and by Moody's "Aa2" or better; provided, however, that securities
        issued by any corporation will not be Eligible Investments to the extent
        that investment therein will cause the then outstanding principal amount
        of securities issued by such corporation and held as part of the Trust
        to exceed 10% of the aggregate Outstanding Principal Balances of the
        Contracts and all amounts of Eligible Investments held as part of the
        Trust;

                (e) commercial paper having the highest rating by Standard &
        Poor's and Moody's at the time of such investment;

                (f) investments in money market funds or money market mutual
        funds having a rating from Standard & Poor's and Moody's in the highest
        investment category granted thereby, including funds for which the
        Indenture Trustee, the Owner Trustee or any of their respective
        Affiliates is investment manager or advisor; and

                (g) such other obligations or securities acceptable to the
        Insurer, as evidenced by a letter from the Insurer to the Indenture
        Trustee (which acceptability may be revoked at any time by the Insurer),
        a copy of which shall be provided by the Indenture Trustee to the Rating
        Agencies.

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

        "FINANCED VEHICLE" means, as to any Contract, an automobile, light-duty
truck or van, together with all accessions thereto, securing the related
Obligor's indebtedness under such Contract.

        "FISCAL AGENT" shall have the meaning set forth in the Policy.

        "FULL PREPAYMENT" means any of the following: (a) with respect to any
Contract other than a Contract referred to in clause (ii), (iii) or (iv) of the
definition of the term "Liquidated Contract", payment by or on behalf of the
Obligor of the total amount required by the terms of such Contract to be paid
thereunder, which amount shall be at least equal to the sum of (i) 100% of the
Principal Balance of such Contract, (ii) interest accrued thereon to the date of
such payment at the APR; and (iii) any overdue amounts; or (b) with respect to
any Contract, payment by the Seller to the Indenture Trustee of the Purchase
Amount of such Contract in connection

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with the purchase of such Contract pursuant to Section 2.03, or payment by the
Servicer of the Purchase Amount of such Contract in connection with the purchase
of such Contract pursuant to Section 3.07 or the purchase of all Contracts
pursuant to Section 8.01.

        "FUNDED CONTRACTS" means all Initial Contracts and Subsequent Contracts.

        "FUNDING PERIOD" shall have the meaning specified in Section 4.08(a).

        "HOLDER" or "NOTEHOLDER" means, with respect to a Note, the Person in
whose name such Note is registered in the Note Register.

        "INDEMNIFICATION AGREEMENT" shall have the meaning specified in the
Insurance Agreement.

        "INDENTURE" means the Indenture, dated as of the date hereof, between
the Issuer and the Indenture Trustee.

        "INDENTURE EVENT OF DEFAULT" means an Event of Default as set forth in
Section 5.01 of the Indenture.

        "INDENTURE TRUSTEE" means JPMorgan Chase Bank, not in its individual
capacity but solely as the Indenture Trustee under the Indenture, its successors
in interest and any successor Indenture Trustee under the Indenture.

        "INITIAL CAPITALIZED INTEREST AMOUNT" means $917,130.11.

        "INITIAL CASH DEPOSIT" shall have the meaning specified in the Insurance
Agreement.

        "INITIAL CONTRACTS" means the Contracts designated as such in Schedule
I-A attached hereto.

        "INITIAL CUT-OFF DATE" means July 1, 2002.

        "INSOLVENCY PROCEEDING" shall have the meaning specified in Section
7.05.

        "INSURANCE AGREEMENT" means the Insurance and Reimbursement Agreement,
to be dated as of the Closing Date, among the Insurer, the Seller, Onyx and the
Servicer, as amended, modified or restated from time to time.

        "INSURER" means MBIA Insurance Corporation or its successors in
interest.

        "INSURER DEFAULT" means the occurrence and continuance of any of the
following:

                (i)             the Insurer shall have failed to make a payment
                                required to be made under the Policy in
                                accordance with its terms;

                (ii)            the Insurer shall have (a) filed a petition or
                                commenced any case or proceeding under any
                                provision or chapter of the United States
                                Bankruptcy Code or any other similar federal or
                                state law relating

                                      -8-
<PAGE>

                                to insolvency, bankruptcy, rehabilitation,
                                liquidation or reorganization, (b) made a
                                general assignment for the benefit of its
                                creditors or (c) had an order for relief entered
                                against it under the United States Bankruptcy
                                Code or any other similar federal or state law
                                relating to insolvency, bankruptcy,
                                rehabilitation, liquidation or reorganization
                                which is final and nonappealable; or

                (iii)           a court of competent jurisdiction, the New York
                                Department of Insurance or other competent
                                regulatory authority shall have entered a final
                                and nonappealable order, judgment or decree (a)
                                appointing a custodian, trustee, agent or
                                receiver for the Insurer or for all or any
                                material portion of its property or (b)
                                authorizing the taking of possession by a
                                custodian, trustee, agent or receiver of the
                                Insurer (or the taking of possession of all or
                                any material portion of the property of the
                                Insurer).

        "INSURER DEFENSE COSTS" means, all costs and expenses of the Insurer
(including costs and expenses of the Trust Agent, the Indenture Trustee or the
Owner Trustee that the Insurer may have paid) in connection with any action,
proceeding or investigation that could adversely affect the Trust or the Trust
Estate or the rights or obligations of the Insurer under any of the
Indemnification Agreement (as defined in the Insurance Agreement), the Basic
Documents or any other document delivered with respect thereto, including
(without limitation) any judgment or settlement entered into affecting the
Insurer or the Insurer's interests, together with interest thereon at a rate
equal to the Base Rate (as defined in the Insurance Agreement) from time to time
in effect plus 1% from the date such expenses are incurred up to but not
including the date such expenses are paid.

        "INTEREST ACCRUAL PERIOD" means, with respect to any Distribution Date,
the period from and including the Distribution Date immediately preceding such
Distribution Date (or, in the case of the first Distribution Date, from and
including the Closing Date) to but excluding such Distribution Date; in the case
of the first Distribution Date, the Interest Accrual Period for the Class A-1
Notes will constitute 16 days.

        "INTEREST RATE" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate or the Class A-4 Rate, as the case may be.

        "ISSUER" means Onyx Acceptance Owner Trust 2002-C and its successors.

        "LIEN" means a security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Contract by operation of law.

        "LIQUIDATED CONTRACT" means a Contract that (i) is the subject of a Full
Prepayment; (ii) is a Defaulted Contract with respect to which Liquidation
Proceeds constituting, in the Servicer's reasonable judgment, the final amounts
recoverable have been received and deposited in the Collection Account; (iii) is
paid in full on or after its Maturity Date; or (iv) has been a Defaulted
Contract for four or more Collection Periods and as to which Liquidation
Proceeds have not been

                                      -9-
<PAGE>

deposited in the Collection Account; provided, however, that in any event a
Contract that is delinquent in the amount of five monthly installments of
Monthly P&I at the end of a Collection Period shall be deemed to be a Liquidated
Contract and shall be deemed to have a Principal Balance of zero.

        "LIQUIDATION EXPENSES" means reasonable out-of-pocket expenses (not to
exceed Liquidation Proceeds), other than any overhead expenses, incurred by the
Servicer in connection with the realization of the full amounts due under any
Defaulted Contract (including the attempted liquidation of a Contract which is
brought current and is no longer in default during such attempted liquidation)
and the sale of any property acquired in respect thereof which are not
recoverable as proceeds paid by any insurer under a comprehensive and collision
insurance policy related to the Contract. Liquidation Expenses shall not include
any late fees or other administrative fees and expenses or similar charges
collected with respect to a Contract.

        "LIQUIDATION PROCEEDS" means amounts received by the Servicer (before
reimbursement for Liquidation Expenses) in connection with the realization of
the full amounts due and to become due under any Defaulted Contract and the sale
of any property acquired in respect thereof.

        "MANDATORY PARTIAL REDEMPTION AMOUNT" means the balance (excluding
investment earnings) remaining on deposit in the Prefunding Account on the
Mandatory Partial Redemption Date after giving effect to the sale to the Trust
of all Prefunded Contracts sold to the Trust during the Funding Period,
including any such acquisition and conveyance on the date on which the Funding
Period ends.

        "MANDATORY PARTIAL REDEMPTION DATE" means the Distribution Date on which
the Notes are partially prepaid pursuant to Section 4.07, which Distribution
Date shall be the Distribution Date immediately succeeding the date on which the
Funding Period ends in the event that any amount remains on deposit in the
Prefunding Account after giving effect to the sale to the Trust of all Prefunded
Contracts sold to the Trust during the Funding Period, including any acquisition
and conveyance on the date on which the Funding Period ends.

        "MATURITY DATE" means, with respect to any Contract, the date on which
the last scheduled payment of such Contract shall be due and payable as such
date may be extended pursuant to Section 3.02.

        "MAXIMUM CAPITALIZED INTEREST AMOUNT" means, with respect to each
Distribution Date following a Collection Period during which amounts are on
deposit in the Prefunding Account, an amount equal to the sum of the Note
Interest Distributable Amount (assuming no further reductions in principal on
the Notes) for each remaining Distribution Date during the Funding Period and
for the Distribution Date immediately following the Funding Period, plus the sum
of the fees payable to the Owner Trustee, the Indenture Trustee and the Trust
Agent and the premium payable to the Insurer for each such Distribution Date, in
each case, allocable to the balance in the Prefunding Account on the opening of
business on the first day of the beginning of the month in which the Maximum
Capitalized Interest Amount is being calculated for the Distribution Date in
that same month, on a pro rata basis, minus the earnings to be received by the
Indenture Trustee on behalf of the Trust through October 17, 2002 from
investment of the

                                      -10-
<PAGE>

funds on deposit in the Prefunding Account, assuming that no additional
Prefunded Contracts are conveyed to the Trust and that interest at a rate of
2.5% per annum is earned on amounts on deposit in the Prefunding Account.

        "MONTHLY P&I" means, with respect to any Contract, the amount of each
monthly installment of principal and interest payable to the Obligee of such
Contract in accordance with the terms thereof, exclusive of any charges
allocable to the financing of any insurance premium and charges which represent
late payment charges or extension fees.

        "MOODY'S" means Moody's Investors Service, Inc., and its successors in
interest.

        "NET COLLECTIONS" means, with respect to any Distribution Date and the
related Collection Period, the sum of (i) all payments of Monthly P&I, all
partial prepayments, all Full Prepayments, Net Liquidation Proceeds and Net
Insurance Proceeds in each case, collected with respect to the Contracts during
such Collection Period, less partial prepayments of Precomputed Contracts
collected with respect to the Contracts during such Collection Period which are
deposited in the Payahead Account pursuant to Section 4.02(a), (ii) amounts
withdrawn from the Payahead Account pursuant to Section 4.01(b) and deposited in
the Collection Account with respect to such Distribution Date, and (iii) the
aggregate Purchase Amount for Purchased Contracts deposited in or credited to
the Collection Account pursuant to Section 4.02(a) on the Business Day preceding
the Servicer Report Date next preceding such Distribution Date.

        "NET INSURANCE PROCEEDS" means, with respect to any Contract, proceeds
paid by any insurer under a comprehensive and collision insurance policy related
to such Contract (other than funds used for the repair of the related Financed
Vehicle or otherwise released by Onyx to the related Obligor in accordance with
normal servicing procedures), after reimbursement to the Servicer of expenses
recoverable under such policy.

        "NET LIQUIDATION PROCEEDS" means the amount derived by subtracting from
the Liquidation Proceeds of a Contract the related Liquidation Expenses.

        "NET YIELD" means, on any day, the percentage equivalent of (a) four
multiplied by (b) a fraction the numerator of which is equal to (i) the sum of
(x) the aggregate of all interest collected on Contracts during the three
immediately preceding Collection Periods, (y) the investment earnings on amounts
deposited in the Prefunding Account transferred to the Payment Account with
respect to the three immediately preceding Distribution Dates and (z) the
amounts transferred from the Capitalized Interest Account to the Payment Account
with respect to the three immediately preceding Distribution Dates, minus (ii)
the sum of (A) the aggregate outstanding principal balances of Contracts which
became Liquidated Contracts other than by virtue of a Full Prepayment during
such three Collection Periods (less any Net Liquidation Proceeds received with
respect to such Liquidated Contracts during such three Collection Periods) and
(B) interest paid to the Noteholders and the Servicing Fees paid to the Servicer
during such three Collection Periods, and the denominator of which is equal to
the average of the Pool Balances as of the last day of each of such three
immediately preceding Collection Periods.

        "NOTE" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a
Class A-4 Note, as applicable.

                                      -11-
<PAGE>

        "NOTE DISTRIBUTABLE AMOUNT" means, with respect to any Distribution
Date, the sum of the Note Principal Distributable Amount and the Note Interest
Distributable Amount for such Distribution Date.

        "NOTE DISTRIBUTION ACCOUNT" means the account established and maintained
as such pursuant to Section 4.01.

        "NOTE FINAL SCHEDULED DISTRIBUTION DATE" means the Class A-1 Final
Scheduled Distribution Date, the Class A-2 Final Scheduled Distribution Date,
the Class A-3 Final Scheduled Distribution Date or the Class A-4 Final Scheduled
Distribution Date, as the case may be.

        "NOTEHOLDER" shall mean any Holder of a Note.

        "NOTE INTEREST CARRYOVER SHORTFALL" means, with respect to any
Distribution Date and a Class of Notes, the excess, if any, of the Note Interest
Distributable Amount for such Class for the immediately preceding Distribution
Date over the amount in respect of interest that is actually deposited in the
Note Distribution Account with respect to such Class on such preceding
Distribution Date, plus, to the extent permitted by applicable law, interest on
the amount of interest due but not paid to Noteholders of such Class on the
preceding Distribution Date at the related Interest Rate for the related
Interest Accrual Period; provided, however, that the Note Interest Carryover
Shortfall for the first Distribution Date shall be zero.

        "NOTE INTEREST DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date and a Class of Notes, the sum of (i) an amount equal to the
interest accrued during the related Interest Accrual Period at the related
Interest Rate for such Class of Notes on the outstanding principal amount of
such Class of Notes on the immediately preceding Distribution Date, after giving
effect to all payments of principal to Noteholders of such Class on or prior to
such Distribution Date (or, in the case of the first Distribution Date, on the
original principal amount of such Class of Notes) and (ii) the Note Interest
Carryover Shortfall for such Class of Notes for such Distribution Date.

        "NOTE POOL FACTOR" means, with respect to any Class of Notes as of any
Distribution Date, a six-digit decimal figure equal to the outstanding principal
amount of such Class of Notes (after giving effect to any reductions thereof to
be made on such Distribution Date) divided by the original outstanding principal
amount of such Class of Notes.

        "NOTE PRINCIPAL CARRYOVER SHORTFALL" means, as of the close of business
on any Distribution Date, the excess of the Note Principal Distributable Amount
for such Distribution Date over the amount in respect of principal that is
actually deposited in the Note Distribution Account on such Distribution Date.

        "NOTE PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date, the sum of (i) the Regular Principal Distributable Amount for
such Distribution Date, (ii) the Accelerated Principal Distributable Amount, if
any, for such Distribution Date and (iii) any outstanding Note Principal
Carryover Shortfall for the immediately preceding Distribution Date; provided,
however, that the Note Principal Distributable Amount shall not exceed the
aggregate outstanding principal amount of the Notes. Notwithstanding the
foregoing, the Note Principal

                                      -12-
<PAGE>

Distributable Amount on the Note Final Scheduled Distribution Date for each
Class of Notes shall not be less than the amount that is necessary to reduce the
outstanding principal amount of the related Class of Notes to zero.

        "NOTE REGISTER" shall have the meaning specified in the Indenture.

        "OBLIGEE" means, with respect to any Contract, the Person to whom an
Obligor is indebted under such Contract.

        "OBLIGOR" means, with respect to any Contract, the purchaser or
co-purchasers of the Financed Vehicle and any other Person who owes payments
under such Contract.

        "OFFICERS' CERTIFICATE" means a certificate signed by the Chairman, the
President or a Vice President, and by the Treasurer, an Assistant Treasurer, the
Controller, an Assistant Controller, the Secretary or an Assistant Secretary of
any Person delivering such certificate and delivered to the Person to whom such
certificate is required to be delivered. In the case of an Officers' Certificate
of the Servicer, at least one of the signing officers must be a Servicing
Officer. Unless otherwise specified, any reference herein to an Officers'
Certificate shall be to an Officers' Certificate of the Servicer.

        "ONYX" means Onyx Acceptance Corporation and its successors in interest.

        "OPINION OF COUNSEL" means a written opinion of counsel (who may be
counsel to the Seller or the Servicer) acceptable to the Indenture Trustee, the
Owner Trustee or the Trust Agent, as the case may be, and the Insurer.

        "ORIGINAL POOL BALANCE" means $450,000,000, which is the sum of (i) the
Principal Balances of the Initial Contracts as of the Initial Cut-Off Date, (ii)
the Principal Balances of the Subsequent Contracts as of the Subsequent Cut-Off
Date, and (iii) the initial deposit in the Prefunding Account.

        "OUTSTANDING" means with respect to a Contract and as of the time of
reference thereto, a Contract that has not reached its Maturity Date, has not
been fully prepaid, has not become a Liquidated Contract and has not been
repurchased pursuant to Section 2.03, 3.07 or 8.01.

        "OUTSTANDING PRINCIPAL BALANCE" means, as of the applicable Cut-Off
Date, (i) with respect to any Precomputed Contract, the amount set forth as the
Outstanding Principal Balance of such Contract on the Schedule of Contracts,
such amount being the total of all unpaid Monthly P&I due on or after the
Cut-Off Date, minus any unearned (or earned but unpaid) interest as of the
applicable Cut-Off Date computed in accordance with the Rule of 78's Method or
the Actuarial Method, as applicable, and (ii) with respect to any Simple
Interest Contract, the amount set forth as the Outstanding Principal Balance of
such Contract on the Schedule of Contracts, such amount being the total of all
principal payments due on or after the applicable Cut-Off Date.

        "OWNER TRUSTEE" means Deutsche Bank Trust Company Delaware, not in its
individual capacity but solely as the Owner Trustee under the Trust Agreement,
its successors in interest and any successor Owner Trustee under the Trust
Agreement.

                                      -13-
<PAGE>

        "OWNER TRUSTEE CORPORATE TRUST OFFICE" means 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 E.A. Delle Donne Corporate Center, 1011 Centre Road, Suite 200,
Wilmington, Delaware 19805-1266, Attention: Corporate Trust Administration; or
at such other address as the Owner Trustee may designate from time to time by
notice to the Noteholders, the Insurer, the Servicer and the Seller.

        "PAYAHEAD ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

        "PAYMENT ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

        "PAYING AGENT" means (i) with respect to the Notes, the Person acting as
the "Paying Agent" under the Indenture and (ii) with respect to the Residual
Interest Instruments, the Person acting as the "Paying Agent" under the Trust
Agreement, the Trust Agent or any other Person that meets the eligibility
standards for the Paying Agent specified in the Trust Agreement and is
authorized by the Issuer to make the distributions from the Payment Account,
including distributions in respect of the Residual Interest Instruments on
behalf of the Issuer.

        "PERCENTAGE INTEREST" shall have the meaning specified in Section
4.04(d).

        "PERSON" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

        "POLICY" means the financial guarantee insurance policy for the Notes,
number 38566, dated July 17, 2002 and issued by the Insurer to the Indenture
Trustee, guaranteeing payment of any Policy Claim Amount, the form of which is
attached hereto as Exhibit B.

        "POLICY CLAIM AMOUNT" means, with respect to each Distribution Date, the
sum of (i) the Deficiency Amount for such Distribution Date and (ii) the
Preference Amount for such Distribution Date.

        "POOL BALANCE" as of the time of determination means the sum of (i) the
aggregate of the Principal Balances of the Contracts, exclusive of the Principal
Balances of all Contracts that are not Outstanding at the end of the Collection
Period ending immediately prior to such time of determination and (ii) the
amounts on deposit in the Prefunding Account (exclusive of any investment
earnings), if any.

        "POTENTIAL PREFERENCE PARTIES" shall have the meaning specified in
Section 4.04(d).

        "PRECOMPUTED CONTRACT" means a Contract as to which, pursuant to the
terms of such Contract, the portion of payments allocable to earned interest and
principal thereunder is determined according to the "Rule of 78's Method" or the
"Actuarial Method".

        "PREFERENCE AMOUNT" means any amount previously distributed to a Holder
in respect of the Notes that is recoverable and sought to be recovered as a
voidable preference by a trustee in

                                      -14-
<PAGE>

bankruptcy with respect to Onyx, the Seller or the Trust pursuant to the United
Stated Bankruptcy Code (11 U.S.C.), as amended from time to time, in accordance
with a final nonappealable order of a court having competent jurisdiction.

        "PREFERENCE CLAIM" shall have the meaning specified in Section 7.05.

        "PREFUNDED AMOUNT" means $176,707,388.84, the initial deposit into the
Prefunding Account.

        "PREFUNDED CONTRACTS" means the Contracts which are transferred by the
Seller to the Issuer on each Prefunding Transfer Date pursuant to this Agreement
and are identified on the schedule attached to the Transfer Certificate
delivered to the Trust, the Indenture Trustee and the Insurer on the Business
Day immediately preceding the related Prefunding Transfer Date.

        "PREFUNDING ACCOUNT" means the account established as such pursuant to
Section 4.01 and maintained pursuant to Section 4.07.

        "PREFUNDING CLOSING DATE" means the last day of the Funding Period, or
if such day is not a Business Day, the following Business Day.

        "PREFUNDING CLOSING DATE CERTIFICATE" means the certificate of an
officer of the Seller delivered in connection with the Prefunding Closing Date,
substantially in the form attached hereto as Exhibit C-2.

        "PREFUNDING CUT-OFF DATE" means the cut-off date specified in the
Transfer Certificate with respect to the Prefunded Contracts transferred on the
related Prefunding Transfer Date.

        "PREFUNDING TRANSFER DATE" means each day on which the Seller conveys
Prefunded Contracts to the Trust.

        "PREMIUM" shall have the meaning specified in the Insurance Agreement.

        "PRINCIPAL BALANCE" means, with respect to a Contract, as of any date,
the Amount Financed under the terms of such Contract minus (i) that portion of
Monthly P&I in respect of such Contract received on or prior to the end of the
most recently ended Collection Period and allocable to principal as determined
by the Servicer and (ii) any Cram Down Loss incurred in respect of such Contract
on or prior to the end of the most recently ended Collection Period. For
purposes of this definition, allocations of Monthly P&I on each Contract by the
Servicer shall be made in accordance with the terms of such Contract, in the
case of a Simple Interest Contract or an Actuarial Contract, or in accordance
with the Recomputed Actuarial Method, in the case of a Rule of 78's Contract.

        "PURCHASE AGREEMENT" means the Second Amended and Restated Sale and
Servicing Agreement dated as of November 30, 2001 between Onyx, as seller and
servicer, and the Seller, as purchaser, as such agreement may have been or may
be modified, supplemented or amended from time to time.

                                      -15-
<PAGE>

        "PURCHASE AMOUNT" means, with respect to a Purchased Contract, the
Principal Balance of such Contract as of the date of purchase of such Contract
plus interest on such Contract through the date of such purchase, to the extent
not previously collected.

        "PURCHASED CONTRACT" means a Contract that (i) has been purchased by the
Servicer or the Seller because of certain material defects in documents related
to such Contract or certain breaches of representations and warranties regarding
such Contract made by the Seller in this Agreement that materially and adversely
affect the interests of the Noteholders or the Insurer, (ii) has been purchased
by the Servicer because of certain breaches of servicing covenants or (iii) has
been purchased by the Servicer in the event of an optional purchase of all of
the Contracts pursuant to Section 8.01

        "RATING AGENCIES" means Moody's and Standard & Poor's.

        "RECOMPUTED ACTUARIAL METHOD" means a method of accounting pursuant to
which each payment of Monthly P&I due on a Rule of 78's Contract will be deemed
to consist of interest equal to the product of 1/12 of the Recomputed Yield for
such Contract and the Principal Balance of the Contract as of the preceding Due
Date for such Contract and of principal to the extent of the remainder of such
scheduled installment of Monthly P&I, which will cause the Outstanding Principal
Balance as of the related Cut-Off Date to be amortized in full at the Recomputed
Yield.

        "RECOMPUTED YIELD" for any Rule of 78's Contract means the per annum
rate determined as of the related Cut-Off Date, such that the net present value
of the remaining scheduled payments due on such Contract, discounted at such
rate from the Due Date for each such scheduled payment to the Due Date for such
Contract immediately preceding the related Cut-Off Date, will equal the
Outstanding Principal Balance.

        "RECORD DATE" means, with respect to a Class of Notes and any
Distribution Date, the Business Day immediately preceding such Distribution Date
or, if Definitive Notes are issued, the last day of the immediately preceding
calendar month.

        "REGISTRAR OF TITLES" means the agency, department or office having the
responsibility for maintaining records of titles to motor vehicles and issuing
documents evidencing such titles in the jurisdiction in which a particular
Financed Vehicle is registered.

        "REGULAR PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date, the amount equal to the sum of the following amounts with
respect to the related Collection Period: (i) collections received on Contracts
(other than Liquidated Contracts and Purchased Contracts) allocable to principal
as determined by the Servicer, including full and partial principal prepayments
(other than partial prepayments on Precomputed Contracts representing amounts
not due in such Collection Period which will be deposited into the Payahead
Account in accordance with this Agreement), (ii) the Principal Balance
(immediately prior to the reduction thereof to zero as provided in the
definition of "Liquidated Contract") of all Contracts (other than Purchased
Contracts) that became Liquidated Contracts during the related Collection
Period, (iii) the Principal Balance of all Contracts that became Purchased
Contracts as

                                      -16-
<PAGE>

of the immediately preceding Record Date and (iv) the aggregate amount of Cram
Down Losses incurred during the related Collection Period.

        "REPAYMENT AMOUNT" shall have the meaning specified in the Insurance
Agreement.

        "RESIDUAL DISTRIBUTION ACCOUNT" has the meaning set forth in the Trust
Agreement.

        "RESIDUAL INTEREST" means the residual interest in the Trust, which
represents the right to the amount remaining, if any, after all prior
distributions have been made under this Agreement, the Indenture and the Trust
Agreement on each Distribution Date and certain other rights to receive amounts
hereunder and under the Trust Agreement.

        "RESIDUAL INTEREST INSTRUMENT" shall have the meaning specified in the
Trust Agreement.

        "RESIDUAL INTERESTHOLDER" means each Person in whose name a Residual
Interest Instrument is registered in the Certificate Register.

        "RESPONSIBLE OFFICER" means any officer of the Indenture Trustee within
the Corporate Trust Office including any vice president, assistant vice
president, assistant treasurer, assistant secretary or any other officer of the
Indenture Trustee customarily performing functions similar to those performed by
any of the above designated officers with direct responsibility for the
administration of this Agreement.

        "RULE OF 78'S CONTRACT" means a Contract pursuant to which the
allocation between interest and principal is calculated using the Rule of 78's
Method.

        "RULE OF 78'S METHOD" means the method of allocating principal and
interest payments on a Contract whereby the amount of each payment allocable to
interest on a Contract is determined by multiplying the total amount of add-on
interest payable over the term of the Contract by a fraction, the denominator of
which is equal to the sum of a series of numbers representing the total number
of monthly payments due under the Contract and the numerator of which is the
number of payments remaining before giving effect to the payment to which the
fraction is being applied.

        "SCHEDULE OF CONTRACTS" means the list or lists of Funded Contracts
attached as Schedule I-A and Schedule I-B to this Agreement and each list of
Prefunded Contracts delivered to the Indenture Trustee, the Issuer and the
Insurer on each Prefunding Transfer Date and identified on Schedule I to the
related Transfer Certificate, which Contracts are being transferred to the Trust
as part of the Trust Property, together with supplemental data regarding the
contracts verified by the Servicer. The Schedule of Contracts attached hereto as
Schedules I-A and I-B, together with the initial deposit into the Prefunding
Account, comprises the Original Pool Balance. The following information with
respect to each Funded Contract is set forth on Schedule I-A and Schedule I-B in
columns, and any supplement to the Schedule of Contracts for Prefunded Contracts
will present the information in the same format:

                Contract Number ("Account")
                Date of Origination ("Discount Date")

                                      -17-
<PAGE>

                Maturity Date ("Maturity")
                Monthly P&I ("Payment")
                Original Principal Balance ("Amount Financed")
                Outstanding Principal Balance ("Net Balance")
                Annual Percentage Rate ("APR")

In addition, the information contained in the Schedule of Contracts shall also
be contained on a computer disk or tape that shall be delivered by the Servicer
to the Indenture Trustee not later than (i) the 5th Business Day following the
Closing Date, with respect to the Funded Contracts and (ii) the 5th Business Day
following the related Prefunding Transfer Date, with respect to the Prefunded
Contracts.

        "SELLER" means Onyx Acceptance Financial Corporation, in its capacity as
the Seller of the Contracts under this Agreement, and each successor thereto (in
the same capacity) pursuant to Section 5.02.

        "SERVICER" means Onyx in its capacity as the servicer of the Contracts
under Section 3.01, and, in each case upon succession in accordance herewith,
each successor servicer in the same capacity pursuant to Section 3.01 and each
successor servicer pursuant to Section 7.02.

        "SERVICER DEFAULT" means an event specified in Section 7.01.

        "SERVICER REPORT DATE" means, with respect to any Distribution Date, the
fifth Business Day prior to such Distribution Date.

        "SERVICING FEE" means, as to any Distribution Date, the fee payable to
the Servicer for services rendered during the Collection Period ending
immediately prior to such Distribution Date, which shall be an amount equal to
the product of one-twelfth of 1% per annum multiplied by the Pool Balance
(excluding amounts on deposit in the Prefunding Account) as of the end of the
Collection Period preceding the related Collection Period.

        "SERVICING OFFICER" means 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 furnished to the Indenture Trustee by
the Servicer pursuant to Section 3.01, as such list may be amended or
supplemented from time to time.

        "SERVICING STANDARDS" means at any time the quality of the Servicer's
performance with respect to (i) compliance with the terms of this Agreement and
(ii) adequacy, measured in accordance with industry standards and current and
historical standards of the Servicer, in respect of the servicing of all
Contracts serviced by the Servicer, regardless of whether any such Contract is
owned by the Servicer or otherwise.

        "SIMPLE INTEREST CONTRACT" means a Contract as to which the portion of
payments allocable to earned interest and principal thereunder is determined
according to the Simple Interest Method. For such Contracts, interest accrued as
of the Due Date is paid first, and then the remaining payment is applied to the
unpaid principal balance. Accordingly, if an Obligor pays the fixed monthly
installment in advance of the Due Date, the portion of the payment allocable to
interest for the period since the preceding payment will be less than it would
be if the

                                      -18-
<PAGE>

payment were made on the Due Date, and the portion of the payment allocable to
reduce the principal balance will be correspondingly greater. Conversely, if an
Obligor pays the fixed monthly installment after its Due Date, the portion of
the payment allocable to interest for the period since the preceding payment
will be greater than it would be if the payment were made on the Due Date, and
the portion of the payment allocable to reduce the principal balance will be
correspondingly smaller. When necessary, an adjustment will be made at the
maturity of the Contract to the scheduled final payment to reflect the larger or
smaller, as the case may be, allocations of payments to the amount financed
under the Contract as a result of early or late payments, as the case may be.

        "SIMPLE INTEREST METHOD" means the method for calculating interest on a
Contract whereby interest due is calculated each day based on the actual
principal balance of the Contract on that day.

        "SPREAD ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

        "SPREAD ACCOUNT MAXIMUM" shall have the meaning set forth in the
Insurance Agreement.

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

        "SUBSEQUENT CONTRACTS" means the Contracts designated as such in
Schedule I-B attached hereto, which have an aggregate Outstanding Principal
Balance of $56,346,774.38.

        "SUBSEQUENT CUT-OFF DATE" means as of the close of business on July 15,
2002.

        "SUCCESSOR CUSTODIAN" shall have the meaning set forth in Section
2.04(b).

        "TITLE DOCUMENT" means, with respect to any Financed Vehicle, the
certificate of title for, or other evidence of ownership of, such Financed
Vehicle issued by the Registrar of Titles in the jurisdiction in which such
Financed Vehicle is registered. For Financed Vehicles registered in certain
states, the Title Document may consist of electronic evidence of ownership on
the electronic lien and title systems of such states.

        "TRANSFER CERTIFICATE" means the certificate of an officer of the Seller
delivered in connection with the delivery of any Prefunded Contracts on the
Business Day immediately preceding a Prefunding Transfer Date, substantially in
the form attached hereto as Exhibit C-1.

        "TRUST" means the Issuer.

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

        "TRUST ACCOUNTS" shall have the meaning specified in Section 4.01(a).

                                      -19-
<PAGE>

        "TRUST AGENT" means JPMorgan Chase Bank, not in its individual capacity
but solely as the Trust Agent under the Trust Agreement and this Agreement
acting on behalf of the Owner Trustee, its successors in interest, and any
successor Trust Agent under such agreements.

        "TRUST AGENT OFFICE" means the principal office of the Trust Agent,
which office at the date of the execution of this Agreement is located at 450
West 33rd Street, 14th Floor, New York, New York 10001, Attention: Institutional
Trust Services/Structured Finance Services -- Onyx Acceptance Owner Trust
2002-C; or at such other address as the Trust Agent may designate from time to
time by notice to the Noteholders, the Insurer, the Servicer and the Seller.

        "TRUST AGREEMENT" means the Trust Agreement, dated as of July 1, 2002,
among the Depositor, the Owner Trustee and the Trust Agent.

        "TRUST PROPERTY" has the meaning set forth in Section 2.01(b) hereof.

        "UCC" means the Uniform Commercial Code as in effect in the applicable
jurisdiction.

        SECTION 1.02 USAGE OF TERMS.

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

        SECTION 1.03 SECTION REFERENCES.

        All section references, unless otherwise indicated, shall be to Sections
in this Agreement.

        SECTION 1.04 CALCULATIONS.

        Interest on the Notes will be calculated on the basis of a 360-day year
of twelve 30-day months, except that interest on the Class A-1 Notes will be
calculated on the basis of a 360-day year and the actual number of days in the
related Interest Accrual Period. Collections of interest on Rule of 78's
Contracts shall be calculated as if such Contracts were actuarial contracts the
scheduled principal balances of which are the Principal Balances thereof, and
collections of interest on Simple Interest Contracts and Actuarial Contracts
will be calculated in accordance with the terms thereof.

        SECTION 1.05 ACCOUNTING TERMS.

        All accounting terms used but not specifically defined herein shall be
construed in accordance with generally accepted accounting principles in the
United States of America.

                                      -20-
<PAGE>

                                   ARTICLE II

                            CONVEYANCE OF CONTRACTS;
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

        SECTION 2.01 CONVEYANCE OF CONTRACTS.

                (a) In consideration of the Issuer's delivery of authenticated
        Notes, in an aggregate amount equal to $450,000,000, to or upon the
        order of the Seller, effective upon the Closing Date, the Seller hereby
        sells, grants, transfers, conveys and assigns to the Issuer, without
        recourse (except as expressly provided in Section 2.03 hereof), all of
        the right, title and interest of the Seller in, to and under:

                (i)             the Funded Contracts listed in the Schedule of
                                Contracts;

                (ii)            all monies received under the Funded Contracts
                                on or after the related Cut-Off Date;

                (iii)           all Net Liquidation Proceeds and Net Insurance
                                Proceeds with respect to any Financed Vehicle to
                                which a Funded Contract relates received on or
                                after the related Cut-Off Date;

                (iv)            the Contract Documents and Contract Files
                                relating to the Funded Contracts (except the
                                Contract Documents and Contract Files for Funded
                                Contracts which have been the subject of a Full
                                Prepayment received on or after the related
                                Cut-Off Date but no later than two Business Days
                                prior to the Closing Date, in lieu of which the
                                Seller shall have deposited in or credited to
                                the Collection Account on or prior to the
                                Closing Date an amount equal to such Full
                                Prepayment);

                (v)             the Trust Accounts and all amounts, financial
                                assets and investment property held therein or
                                credited thereto, including, if applicable, all
                                Eligible Investments credited thereto (but
                                excluding (A) the Payahead Account and all
                                amounts, financial assets and investment
                                property held therein or credited thereto,
                                including all Eligible Investments credited
                                thereto and (B) investment income credited to
                                the Collection Account);

                (vi)            the right of the Seller, as purchaser under the
                                Purchase Agreement, to cause Onyx as seller
                                thereunder to repurchase Funded Contracts listed
                                in the Schedule of Contracts under certain
                                circumstances;

                (vii)           any and all security interests of the Seller in
                                the Financed Vehicles and the rights to receive
                                proceeds from claims on certain insurance
                                policies covering the Financed Vehicles or the
                                individual Obligors under each related Funded
                                Contract;

                                      -21-
<PAGE>

                (viii)          the Seller's right to proceeds under the Blanket
                                Insurance Policy with respect to the Funded
                                Contracts; and

                (ix)            all proceeds in any way delivered with respect
                                to the foregoing, all rights to payments with
                                respect to the foregoing and all rights to
                                enforce the foregoing.

                (b) Subject to the conditions set forth in Section 2.01(c), in
        consideration of the Issuer's delivery of authenticated Notes, in an
        aggregate amount equal to $450,000,000, to or upon the order of the
        Seller, effective upon the Closing Date, the Seller hereby sells,
        grants, transfers, conveys and assigns to the Issuer, without recourse
        (except as expressly provided in Section 2.03 hereof) effective upon
        delivery to the Issuer on the related Prefunding Transfer Date against
        payment therefor from the Prefunding Account in accordance Section
        4.07(b), all of the right, title and interest of the Seller in, to and
        under:

                (i)             all Prefunded Contracts listed on each Transfer
                                Certificate;

                (ii)            all monies received under the Prefunded
                                Contracts on or after the related Prefunding
                                Cut-Off Date;

                (iii)           all Net Liquidation Proceeds and Net Insurance
                                Proceeds with respect to any Financed Vehicle to
                                which a Prefunded Contract relates received on
                                or after the related Prefunding Cut-Off Date;

                (iv)            the Contract Documents and Contract Files
                                relating to the Prefunded Contracts;

                (v)             the right of the Seller, as purchaser under the
                                Purchase Agreement, to cause Onyx as seller
                                thereunder to repurchase Prefunded Contracts
                                listed on any Transfer Certificate under certain
                                circumstances;

                (vi)            any and all security interests of the Seller in
                                the related Financed Vehicles and the rights to
                                receive proceeds from claims on certain
                                insurance policies covering such Financed
                                Vehicles or the individual Obligors under each
                                related Prefunded Contract;

                (vii)           the Seller's right to proceeds under the Blanket
                                Insurance Policy with respect to the Prefunded
                                Contracts; and

                (viii)          all proceeds in any way delivered with respect
                                to the foregoing, all rights to payments with
                                respect to the foregoing and all rights to
                                enforce the foregoing.

        The foregoing items of property listed in Sections 2.01(a) and (b),
together with the rights of the Indenture Trustee under the Policy, are
collectively referred to as the "TRUST PROPERTY". In addition, on or prior to
the Closing Date, the Seller shall cause the Insurer to deliver the Policy to
the Indenture Trustee for the benefit of the Noteholders.

                                      -22-
<PAGE>

        It is the intention of the Seller and the Issuer that the assignment and
transfer herein contemplated constitute (and shall be construed and treated for
all purposes as) a true and complete sale of the Trust Property (other than the
Spread Account and the Policy), conveying good title thereto free and clear of
any liens and encumbrances, from the Seller to the Issuer. However, in the event
that such conveyance is deemed to be a pledge to secure a loan (in spite of the
express intent of the parties hereto that this conveyance constitutes, and shall
be construed and treated for all purposes, as a true and complete sale), the
Seller hereby grants to the Issuer, for the benefit of the Noteholders and the
Insurer, a first priority perfected security interest in all of the Seller's
right, title and interest in the Trust Property whether now existing or
hereafter created and all proceeds of the foregoing to secure the loan deemed to
be made in connection with such pledge and, in such event, this Agreement shall
constitute a security agreement under applicable law.

                (c) The sale and assignment of the Prefunded Contracts and the
        other property and rights related thereto described in Section 2.01(b)
        shall be subject to the satisfaction of each of the following
        conditions, as well as the conditions set forth in Section 4.08, as of
        the related Prefunding Transfer Date, as applicable:

                (i)             the Seller shall have delivered to the
                                Custodian, on behalf of the Issuer, the
                                Prefunded Contracts, and the Seller shall have
                                delivered to the Issuer, the Indenture Trustee
                                and the Insurer, on the Business Day immediately
                                preceding the related Prefunding Transfer Date,
                                a duly executed Transfer Certificate,
                                substantially in the form of Exhibit C-1;

                (ii)            the Servicer and the Seller shall certify to the
                                Indenture Trustee and the Insurer that, as of
                                the Prefunding Transfer Date, the Servicer and
                                the Seller, respectively, were not insolvent nor
                                were they made insolvent by such transfer nor
                                were they aware of any such pending insolvency;

                (iii)           the Seller shall certify to the Indenture
                                Trustee and the Insurer that the addition of
                                such Prefunded Contracts will not result in a
                                material adverse tax consequence to the Issuer
                                or the Noteholders;

                (iv)            the Funding Period shall not have terminated;

                (v)             the Seller and the Servicer shall certify to the
                                Indenture Trustee and the Insurer that no
                                selection procedures believed by the Seller or
                                the Servicer to be adverse to the interests of
                                the Noteholders or the Insurer shall have been
                                utilized in selecting the Prefunded Contracts;

                (vi)            the Seller and the Insurer shall not have been
                                advised by either Rating Agency on or before the
                                Business Day immediately preceding such
                                Prefunding Transfer Date that the conveyance of
                                the Prefunded Contracts would result in a
                                qualification,

                                      -23-
<PAGE>

                                modification or withdrawal of its then current
                                rating of the Notes without regard to the
                                Policy;

                (vii)           the weighted average APR (using the Recomputed
                                Yield for the Rule of 78's Contracts) of the
                                Contracts (after giving effect to the purchase
                                of the related Prefunded Contracts) shall not be
                                less than 10.20%;

                (viii)          less than 20% of the Prefunded Contracts
                                transferred by the Seller to the Issuer since
                                the Closing Date, including all Prefunded
                                Contracts being transferred on such Prefunding
                                Transfer Date, shall have an original term to
                                maturity of more than 60 months and the weighted
                                average remaining term of all Contracts
                                (including the Prefunded Contracts) as of such
                                Prefunding Transfer Date shall not be greater
                                than 60 months;

                (ix)            if the balance in the Prefunding Account prior
                                to such Prefunding Transfer Date exceeds
                                $30,000,000, the aggregate Outstanding Principal
                                Balance, as of the related Prefunding Cut-Off
                                Date, of the Prefunded Contracts to be conveyed
                                by the Seller to the Issuer on such Prefunding
                                Transfer Date shall equal or exceed $10,000,000
                                and the Insurer shall have consented to such
                                transfer;

                (x)             at least three Business Days prior to each
                                Prefunding Transfer Date, the Seller shall have
                                delivered to the Rating Agencies and the Insurer
                                pool stratification data (including data with
                                respect to when the first scheduled payment is
                                due under each such Prefunded Contract) relating
                                to the Prefunded Contracts to be conveyed by the
                                Seller to the Issuer on such Prefunding Transfer
                                Date, in the form of stratification data
                                delivered to the Rating Agencies and the Insurer
                                with respect to the Funded Contracts, and, as of
                                the related Prefunding Cut-Off Date, shall have
                                certified that the information contained therein
                                is true and correct; and

                (xi)            The first scheduled monthly payment for at least
                                50% of the Prefunded Contracts (by Outstanding
                                Principal Balance as of the related Prefunding
                                Cut-Off Date) shall be due on or before October
                                31, 2002.

                (d) As of the Closing Date, the Issuer acknowledges the
        conveyance to it of the Trust Property from the Seller, including all
        right, title and interest of the Seller in and to the Trust Property,
        receipt of which is hereby acknowledged by the Issuer. Concurrently with
        such delivery and in exchange therefor, the Issuer has pledged to the
        Indenture Trustee, for the benefit of the Noteholders and the Insurer,
        the Trust Property and the Indenture Trustee, pursuant to the written
        instructions of the Issuer, has executed and caused to be authenticated
        and delivered the Notes to the Seller or its designee, upon the order of
        the Issuer.

                                      -24-
<PAGE>

                (e) In connection with the sale of the Contracts pursuant to the
        Purchase Agreement, Onyx filed with the office of the Secretary of State
        of the State of Delaware a UCC-1 financing statement naming Onyx as
        debtor, naming the Seller as secured party and including the Contracts
        in the description of the collateral, such filing made in order to
        continue the effectiveness of a financing statement naming Onyx as
        debtor and the Seller as secured party filed with the office of the
        Secretary of State of the State of California prior to July 1, 2001. In
        connection with the sale of the Contracts pursuant to this Agreement,
        the Seller has filed or caused to be filed with the Secretary of State
        of the State of Delaware a UCC-1 financing statement naming the Seller
        as debtor, naming the Issuer as secured party, naming the Indenture
        Trustee, on behalf of the Noteholders, as assignee, and including the
        Contracts in the description of the collateral. In connection with the
        pledge of the Contracts pursuant to the Indenture, the Trust has filed
        with the offices of the Secretary of State of the State of Delaware
        UCC-1 financing statements naming the Trust as debtor and the Indenture
        Trustee, on behalf of the Noteholders and the Insurer, as secured party.
        The grant of a security interest to the Indenture Trustee and the rights
        of the Indenture Trustee in the Contracts shall be governed by the
        Indenture.

        The Seller shall have caused UCC-3 partial releases to have been filed
with the office of Secretary of State of the State of Delaware with respect to
any outstanding security interests in the Contracts.

                (f) From time to time, the Servicer shall cause to be taken such
        actions as are necessary to continue the perfection of the respective
        interests of the Trust and the Indenture Trustee in the Contracts and to
        continue the first priority security interest of the Indenture Trustee
        in the Financed Vehicles and their proceeds (other than, as to such
        priority, any statutory lien arising by operation of law after the
        Closing Date which is prior to such interest), including, without
        limitation, the filing of financing statements, amendments thereto or
        continuation statements and the making of notations on records or
        documents of title.

                (g) If any change in the name, identity or corporate structure
        of the Seller or Onyx or the relocation of the state of organization of
        either of them would make any financing or continuation statement or
        notice of lien filed under this Agreement or the other Basic Documents
        misleading within the meaning of applicable provisions of the UCC or any
        title statute, the Servicer, within the time period required by
        applicable law, shall file such financing statements or amendments as
        may be required to preserve and protect the interests of the Trust, the
        Indenture Trustee, the Noteholders and the Insurer in the Contracts, the
        related Financed Vehicles and the proceeds thereof. Promptly thereafter,
        the Servicer shall deliver to the Trust, the Indenture Trustee and the
        Insurer an Opinion of Counsel stating that, in the opinion of such
        counsel, all financing statements or amendments necessary fully to
        preserve and protect the interests of the Trust, the Indenture Trustee,
        the Noteholders and the Insurer in the Contracts, the related Financed
        Vehicles and the proceeds thereof have been filed, and reciting the
        details of such filings.

                (h) During the term of this Agreement, the Seller and Onyx shall
        each continue to be an organization organized under the laws of one of
        the states of the United States.

                                      -25-
<PAGE>

                (i) The Servicer shall pay all reasonable costs and
        disbursements in connection with the perfection and the maintenance of
        perfection, as against all third parties, of the Indenture Trustee's
        right, title and interest in and to the Contracts and in connection with
        maintaining the first priority security interest (subject to the
        security interest of the Insurer pursuant to the Insurance Agreement) in
        the Financed Vehicles and the proceeds thereof.

                (j) On the Prefunding Closing Date, the Seller shall:

                (i)             deliver a certificate from each secured creditor
                                of the Seller confirming that such creditor has
                                no claim of any security interest in any of the
                                Prefunded Contracts transferred during the
                                Funding Period;

                (ii)            deliver to each Rating Agency, the Insurer and
                                the Indenture Trustee a Prefunding Closing Date
                                Certificate;

                (iii)           deliver to each Rating Agency, the Insurer and
                                the Indenture Trustee an Opinion of Counsel with
                                respect to the absence of negative tax
                                consequences to the Trust, the characterization
                                of the transfer of the Prefunded Contracts and
                                the perfection of the Indenture Trustee's
                                interest on behalf of the Noteholders;

                (iv)            deliver to each Rating Agency, the Insurer and
                                the Indenture Trustee with respect to any state
                                (other than California) in which 10% or more of
                                the Contracts (including the Prefunded
                                Contracts), by Outstanding Principal Balance,
                                were originated, an opinion with respect to the
                                perfection of the security interest of the
                                Indenture Trustee in the Financed Vehicles
                                securing the Contracts originated in such state;
                                and

                (v)             deliver to the Insurer an Opinion of Counsel to
                                the effect that Onyx is duly qualified as a
                                foreign corporation to do business, and is in
                                good standing, in each of the states in which
                                Prefunded Contracts have been originated.

        Failure to comply with any of the conditions set forth in this Section
2.01(j) on the Prefunding Closing Date shall be deemed to be a breach of a
representation and warranty with respect to each of the Prefunded Contracts to
which such failed conditions relate as of the Prefunding Closing Date.

        SECTION 2.02 REPRESENTATIONS AND WARRANTIES OF THE SELLER.

        The Seller makes the following representations and warranties on which
(i) the Issuer is deemed to have relied in acquiring the Contracts and (ii) the
Insurer is deemed to have relied in issuing the Policy; provided such
representations and warranties speak as of the execution and delivery of this
Agreement and as of the Closing Date with respect to Sections 2.02(a), (b) and
(c), and as of each Prefunding Transfer Date (with respect to the Prefunded
Contracts conveyed

                                      -26-
<PAGE>

to the Trust on such date) with respect to Sections 2.02(a) and (d), but shall
survive the sale, transfer and assignment of the Contracts to the Issuer and the
pledge thereof to the Indenture Trustee pursuant to the Indenture.

                (a) As to the Seller:

                (i)             The Seller is duly organized and validly
                                existing as a corporation organized and existing
                                and in good standing under the laws of the State
                                of Delaware, with power and authority to own its
                                properties and to conduct its business and had
                                at all relevant times, and has, power,
                                authority, and legal right to originate or
                                acquire and own the Contracts.

                (ii)            The Seller is duly qualified to do business as a
                                foreign corporation in good standing, and shall
                                have 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.

                (iii)           The Seller has the power and authority to
                                execute and deliver this Agreement and to carry
                                out its terms; the Seller has full power and
                                authority to sell and assign the property to be
                                sold and assigned to and deposited with the
                                Issuer and has duly authorized such sale and
                                assignment to the Issuer by all necessary
                                corporate action; and the execution, delivery,
                                and performance of this Agreement has been duly
                                authorized by the Seller by all necessary
                                corporate action.

                (iv)            This Agreement constitutes (A) a valid sale,
                                transfer, and assignment of the Contracts,
                                enforceable against creditors of and purchasers
                                from the Seller and (B) a legal, valid, and
                                binding obligation of the Seller enforceable in
                                accordance with its terms, except as such
                                enforceability may be limited by bankruptcy,
                                insolvency, reorganization, or other similar
                                laws affecting the enforcement of creditors'
                                rights in general and by general principles of
                                equity, regardless of whether such
                                enforceability shall be considered in a
                                proceeding in equity or at law.

                (v)             The consummation of the transactions
                                contemplated by this Agreement and the
                                fulfillment of the terms hereof shall not
                                conflict with, result in any breach of any of
                                the terms and provisions of, nor constitute
                                (with or without notice or lapse of time) a
                                default under, the certificate of incorporation
                                or bylaws of the Seller, or any indenture,
                                agreement, or other instrument to which the
                                Seller is a party or by which it shall be bound;
                                nor result in the creation or imposition of any
                                Lien upon any of the properties of the Seller
                                pursuant to the terms of any such indenture,
                                agreement, or other

                                      -27-
<PAGE>

                                instrument (other than pursuant to the Basic
                                Documents to which the Seller is a party); nor
                                violate any law or any order, rule, or
                                regulation applicable to the Seller of any court
                                or of any federal or state regulatory body,
                                administrative agency, or other governmental
                                instrumentality having jurisdiction over the
                                Seller or its properties.

                (vi)            To the Seller's best knowledge after due
                                inquiry, there are no proceedings or
                                investigations pending, or threatened, before
                                any court, regulatory body, administrative
                                agency, or other governmental instrumentality
                                having jurisdiction over the Seller or its
                                properties: (A) asserting the invalidity of this
                                Agreement, the Notes, (B) seeking to prevent the
                                issuance of the Notes or the consummation of any
                                of the transactions contemplated by this
                                Agreement, (C) seeking any determination or
                                ruling that might materially and adversely
                                affect the performance by the Seller of its
                                obligations under, or the validity or
                                enforceability of, this Agreement, the Notes, or
                                (D) naming the Seller which might adversely
                                affect the federal income tax attributes of the
                                Notes.

                (b) As to each Funded Contract (except as noted below as being
        applicable only to either Precomputed Contracts or Simple Interest
        Contracts):

                (i)             The information pertaining to such Contract set
                                forth in the related Schedule of Contracts was
                                true and correct in all material respects at the
                                Closing Date.

                (ii)            As of the Closing Date, such Contract was
                                secured by a valid and enforceable first
                                priority security interest in favor of Onyx in
                                the related Financed Vehicle, and such security
                                interest has been duly perfected and is prior to
                                all other liens upon and security interests in
                                such Financed Vehicle which now exist or may
                                hereafter arise or be created (except, as to
                                priority, for any lien for unpaid taxes or
                                unpaid storage or repair charges which may arise
                                after the Closing Date in accordance with the
                                UCC); such security interest is assignable, had
                                been assigned by Onyx to the Seller pursuant to
                                the Purchase Agreement, and, as of the Closing
                                Date, has been assigned by the Seller to the
                                Issuer pursuant to Section 2.01(a) hereof.

                (iii)           (A) If the related Contract was originated in a
                                state in which notation of a security interest
                                on the Title Document (or in the electronic
                                title records) is required or permitted to
                                perfect the security interest in the related
                                Financed Vehicle, the Title Document or the
                                electronic title records for such Financed
                                Vehicle shows, or, if a new or replacement Title
                                Document is being applied for with respect to
                                such Financed Vehicle, the Title Document will

                                      -28-
<PAGE>

                                be received within 180 days of the Closing Date
                                and will show, Onyx named as the original
                                secured party under the related Contract as the
                                holder of a first priority security interest in
                                such Financed Vehicle, and (B) if the related
                                Contract was originated in a state in which the
                                filing of a financing statement under the UCC is
                                required to perfect a security interest in motor
                                vehicles, such filings or recordings have been
                                duly made and show Onyx named as the original
                                secured party under the related Contract, and in
                                either case, the Indenture Trustee on behalf of
                                the Noteholders and the Insurer has the same
                                rights as such secured party has or would have
                                (if such secured party were still the owner of
                                such Contract) against all parties claiming an
                                interest in such Financed Vehicle. With respect
                                to each Contract for which the Title Document
                                has not yet been returned from the Registrar of
                                Titles (or evidenced in the electronic title
                                records), Onyx has written evidence that such
                                Title Documents showing Onyx as first lienholder
                                have been applied for.

                (iv)            As of the Closing Date, the Seller had good and
                                marketable title to and was the sole owner of
                                each such Contract to be transferred to the
                                Issuer pursuant to Section 2.01 free of liens,
                                claims, encumbrances and rights of others and,
                                upon transfer of such Contract to the Issuer
                                pursuant to Section 2.01, the Issuer will have
                                good and marketable title to, will have a first
                                priority perfected security interest in and will
                                be the sole owner of such Contract free of
                                liens, encumbrances and rights of others.

                (v)             As of the related Cut-Off Date, the most recent
                                scheduled payment due on each such Contract had
                                been made or was not delinquent more than 30
                                days and, to the best of the Seller's knowledge,
                                all payments on the Contract were made by the
                                related Obligors.

                (vi)            As of the Closing Date, there is no lien against
                                the related Financed Vehicle for delinquent
                                taxes.

                (vii)           As of the Closing Date, there is no right of
                                rescission, offset, defense or counterclaim to
                                the obligation of the related Obligor(s) to pay
                                the unpaid principal or interest due under such
                                Contract; the operation of the terms of such
                                Contract or the exercise of any right thereunder
                                will not render such Contract unenforceable in
                                whole or in part or subject such Contract to any
                                right of rescission, offset, defense or
                                counterclaim, and the Seller has no knowledge
                                that such right of rescission, offset, defense
                                or counterclaim has been asserted or threatened.

                (viii)          As of the Closing Date, to the best of the
                                Seller's knowledge, there are no liens or claims
                                which have been filed, including liens for

                                      -29-
<PAGE>

                                work, labor, material, storage or unpaid taxes
                                affecting the related Financed Vehicle which are
                                or may become a lien prior to, or equal or
                                coordinate with, the security interest granted
                                by such Contract.

                (ix)            Such Contract, and the sale of the Financed
                                Vehicle sold thereunder, complied, at the time
                                it was made, in all material respects with all
                                applicable federal, state and local laws (and
                                regulations thereunder), including without
                                limitation usury, equal credit opportunity, fair
                                credit reporting, truth-in-lending or other
                                similar laws, the Federal Trade Commission Act,
                                the Fair Debt Collection Practices Act, the Fair
                                Credit Billing Act, the Magnuson-Moss Warranty
                                Act, the Federal Reserve Board's Regulations B
                                and Z, the Soldiers' and Sailors' Civil Relief
                                Act of 1940, state adoptions of the National
                                Consumer Act and the Uniform Consumer Credit
                                Code, and other applicable state laws regulating
                                retail installment sales contracts and loans in
                                general and motor vehicle retail installment
                                contracts and loans in particular; and the
                                consummation of the transactions herein
                                contemplated, including, without limitation, the
                                transfer of ownership of such Contracts to the
                                Issuer and the receipt of interest by the
                                Noteholders, will not violate any applicable
                                federal, state or local law.

                (x)             Such Contract is the legal, valid and binding
                                obligation of the related Obligor(s) thereunder
                                and is enforceable in accordance with its terms,
                                except only as such enforcement may be limited
                                by bankruptcy, insolvency or similar laws
                                affecting the enforcement of creditors' rights
                                generally; each party to such Contract had full
                                legal capacity to execute and deliver such
                                Contract and all other documents related thereto
                                and to grant the security interest purported to
                                be granted thereby; the terms of such Contract
                                have not been waived, amended or modified in any
                                respect, except by instruments that are part of
                                the related Contract Documents, and no such
                                waiver, amendment or modification has caused
                                such Contract to fail to meet all of the
                                representations, warranties and conditions, set
                                forth herein with respect thereto.

                (xi)            Such Contract contains customary and enforceable
                                provisions such as to render the rights and
                                remedies of the holder or assignee thereof
                                adequate for the practical realization against
                                the collateral of the benefits of the security,
                                subject, as to enforceability, to bankruptcy,
                                insolvency, reorganization or similar laws
                                affecting the enforcement of creditors' rights
                                generally.

                (xii)           As of the Closing Date, (a) there was no
                                default, breach, violation or event permitting
                                acceleration existing under such Contract

                                      -30-
<PAGE>

                                (except payment delinquencies permitted by
                                subparagraph (v) above), (b) there does not
                                exist any continuing condition that with notice
                                or lapse of time would constitute a default,
                                breach, violation or event permitting
                                acceleration existing under such Contract, and
                                (c) the Seller has not waived any such default,
                                breach, violation or event permitting
                                acceleration except payment delinquencies
                                permitted by subparagraph (v) above.

                (xiii)          As of the Closing Date each related Financed
                                Vehicle will be covered by the Blanket Insurance
                                Policy; each of Onyx and the Seller shall at all
                                times comply with all of the provisions of such
                                insurance policy applicable to it so long as
                                such insurance policy is in effect.

                (xiv)           As of the Closing Date, (a) such Contract will
                                require that the related Obligor(s) obtain and
                                maintain in effect for the related Financed
                                Vehicle a comprehensive and collision insurance
                                policy (i) in an amount at least equal to the
                                lesser of (x) its maximum insurable value or (y)
                                the principal amount due from the related
                                Obligor(s) under such Contract, (ii) naming Onyx
                                as a loss payee and (iii) insuring against loss
                                and damage due to fire, theft, transportation,
                                collision and other risks generally covered by
                                comprehensive and collision coverage and (b) the
                                Servicer shall have put in place a vendor's
                                single interest insurance policy providing
                                coverage upon repossession of the related
                                Financed Vehicle in an amount equal to the
                                lesser of the actual cash value of such Financed
                                Vehicle, the cost of repair or replacement for
                                such Financed Vehicle and the unpaid balance of
                                the related Contract. Each of Onyx and the
                                Seller shall at all times comply with all of the
                                provisions of such insurance policies applicable
                                to it.

                (xv)            Such Contract was acquired by Onyx from a Dealer
                                with which it ordinarily does business, and no
                                adverse selection procedures have been utilized
                                in selecting such Contract from all other
                                similar contracts purchased or originated by
                                Onyx or any subsidiary.

                (xvi)           Payments under such Contract have been applied
                                in accordance with the Rule of 78's Method, the
                                Actuarial Method or the Simple Interest Method,
                                as provided in the applicable Contract, and are
                                due monthly in substantially equal amounts
                                through its Maturity Date sufficient to fully
                                amortize the principal balance of such Contract
                                by its Maturity Date.

                (xvii)          There is only one original of such Contract and
                                such original, together with all other related
                                Contract Documents, is being held by the
                                Custodian.

                                      -31-
<PAGE>

                (xviii)         As of the Closing Date, the Servicer has clearly
                                marked its electronic records to indicate that
                                such Contract is owned by the Issuer.

                (xix)           At the date of origination of the Contract, the
                                original principal balance of such Contract was
                                not greater than the purchase price to the
                                related Obligor(s) (including taxes, warranties,
                                licenses and related charges) of the related
                                Financed Vehicle.

                (xx)            As of the related Cut-Off Date, the Seller has
                                not received notice that any Obligor under such
                                Contract has filed for bankruptcy.

                (xxi)           Such Contract had an original maturity of not
                                more than 72 months and as of the related
                                Cut-Off Date, such Contract has a remaining
                                maturity of 72 months or less;

                (xxii)          The first scheduled monthly payment for at least
                                80% of the Initial Contracts (by Outstanding
                                Principal Balance) is due on or before July 31,
                                2002, and the first scheduled monthly payment
                                for at least 90% of the Subsequent Contracts (by
                                Outstanding Principal Balance) is due on or
                                before August 31, 2002.

                (xxiii)         As of the related Cut-Off Date, such Contract
                                has a remaining principal balance of at least
                                $500.

                (xxiv)          As of the related Cut-Off Date, such Contract is
                                secured by a Financed Vehicle that has not been
                                repossessed without reinstatement.

                (xxv)           The related Obligor(s) were located in Alabama,
                                Arizona, California, Colorado, Connecticut,
                                Delaware, Florida, Georgia, Idaho, Illinois,
                                Indiana, Iowa, Kansas, Kentucky, Maryland,
                                Massachusetts, Michigan, Minnesota, Missouri,
                                Montana, Nebraska, Nevada, New Hampshire, New
                                Jersey, North Carolina, Oklahoma, Oregon,
                                Pennsylvania, South Carolina, Tennessee, Texas,
                                Utah, Virginia, Washington or West Virginia on
                                the date of origination of such Contract.

                (xxvi)          The Obligor on such Contract is either (a) a
                                natural person residing in any state or (b)
                                another entity, provided that a natural person
                                is a joint and several Obligor with respect to
                                such Contract.

                (c) As to all of the Funded Contracts:

                (i)             The aggregate Outstanding Principal Balance
                                payable by Obligors of the Funded Contracts as
                                of the related Cut-Off Date plus the initial
                                deposit into the Prefunding Account equals the
                                Original Pool Balance.

                                      -32-
<PAGE>

                (ii)            As of the related Cut-Off Date, approximately
                                29.43% of the Outstanding Principal Balance of
                                all Funded Contracts is attributable to loans
                                involving new Financed Vehicles, and
                                approximately 70.57% of the Outstanding
                                Principal Balance of all Funded Contracts is
                                attributable to loans involving used Financed
                                Vehicles.

                (iii)           As of the related Cut-Off Date, the aggregate
                                Outstanding Principal Balance of all Funded
                                Contracts originated in any single state, other
                                than California, did not equal or exceed 10%.

                (d) As to each Prefunded Contract (except as noted below as
        being applicable only to either Precomputed Contracts or Simple Interest
        Contracts), as of the related Prefunding Transfer Date (except as
        otherwise noted):

                (i)             The information pertaining to such Contract set
                                forth in the related Transfer Certificate is
                                true and correct in all material respects as of
                                the related Prefunding Transfer Date.

                (ii)            As of the related Prefunding Transfer Date, such
                                Contract was secured by a valid and enforceable
                                first priority security interest in favor of
                                Onyx in the related Financed Vehicle, and such
                                security interest is duly perfected and is prior
                                to all other liens upon and security interests
                                in such Financed Vehicle which exist or may
                                hereafter arise or be created (except, as to
                                priority, for any lien for unpaid taxes or
                                unpaid storage or repair charges which may arise
                                after the Prefunding Transfer Date in accordance
                                with the UCC); such security interest is
                                assignable, has been assigned by Onyx to the
                                Seller pursuant to the Purchase Agreement and,
                                as of the Prefunding Transfer Date, has been
                                assigned by the Seller to the Issuer pursuant to
                                Section 2.01(b) hereof.

                (iii)           (A) If the related Contract is originated in a
                                state in which notation of a security interest
                                on the Title Document (or in the electronic
                                title records) is required or permitted to
                                perfect the security interest in the related
                                Financed Vehicle, the Title Document or the
                                electronic title records for such Financed
                                Vehicle show, or, if a new or replacement Title
                                Document is being applied for with respect to
                                such Financed Vehicle, the Title Document will
                                be received within 180 days of the related
                                Prefunding Transfer Date and will show, Onyx
                                named as the original secured party under the
                                related Contract as the holder of a first
                                priority security interest in such Financed
                                Vehicle, and (B) if the related Contract is
                                originated in a state in which the filing of a
                                financing statement under the UCC is required to
                                perfect a security interest in motor vehicles,
                                such filings or recordings have been duly made
                                and show Onyx named as the original secured
                                party under the related Contract as

                                      -33-
<PAGE>

                                of the related Prefunding Transfer Date, and in
                                either case, the Indenture Trustee on behalf of
                                the Noteholders and the Insurer has the same
                                rights as such secured party has or would have
                                (if such secured party were still the owner of
                                the Contract) against all parties claiming an
                                interest in such Financed Vehicle. With respect
                                to each Contract for which the Title Document
                                has not yet been returned from the Registrar of
                                Titles (or evidenced in the electronic title
                                records), Onyx has received written evidence
                                that such Title Documents showing Onyx as first
                                lienholder have been applied for as of the
                                related Prefunding Transfer Date.

                (iv)            As of the related Prefunding Transfer Date, the
                                Seller had good and marketable title to and was
                                the sole owner of each Contract to be
                                transferred to the Issuer pursuant to Section
                                2.01(b) free of liens, claims, encumbrances and
                                rights of others and, upon transfer of such
                                Contract to the Issuer pursuant to Section
                                2.01(b), the Issuer will have good and
                                marketable title to, will have a first perfected
                                security interest in and will be the sole owner
                                of such Contract free of liens, encumbrances and
                                rights of others.

                (v)             As of the related Prefunding Cut-Off Date, the
                                most recent scheduled payment due on each such
                                Contract has been made or was not delinquent
                                more than 30 days and, to the best of the
                                Seller's knowledge, all payments on the Contract
                                were made by the related Obligors.

                (vi)            As of the related Prefunding Transfer Date,
                                there is no lien against the related Financed
                                Vehicle for delinquent taxes.

                (vii)           As of the related Prefunding Transfer Date,
                                there is no right of rescission, offset, defense
                                or counterclaim to the obligation of the
                                Obligor(s) to pay the unpaid principal or
                                interest due under such Contract; the operation
                                of the terms of such Contract or the exercise of
                                any right thereunder will not render such
                                Contract unenforceable in whole or in part or
                                subject such Contract to any right of
                                rescission, offset, defense or counterclaim, and
                                the Seller has no knowledge that such right of
                                rescission, offset, defense or counterclaim has
                                been asserted or threatened.

                (viii)          As of the related Prefunding Transfer Date, to
                                the best of the Seller's knowledge, there are no
                                liens or claims which have been filed, including
                                liens for work, labor, material, storage or
                                unpaid taxes affecting the related Financed
                                Vehicle which are or may become a lien prior to,
                                or equal or coordinate with, the security
                                interest granted by such Contract.

                                      -34-
<PAGE>

                (ix)            Such Contract, and the sale of the related
                                Financed Vehicle sold thereunder, complied, at
                                the time it was made, in all material respects
                                with all applicable federal, state and local
                                laws (and regulations thereunder), including
                                without limitation usury, equal credit
                                opportunity, fair credit reporting,
                                truth-in-lending or other similar laws, the
                                Federal Trade Commission Act, the Fair Debt
                                Collection Practices Act, the Fair Credit
                                Billing Act, the Magnuson-Moss Warranty Act, the
                                Federal Reserve Bond's Regulations B and Z and,
                                the Soldiers' and Sailors' Civil Relief Act of
                                1940, state adoptions of the National Consumer
                                Act and the Uniform Consumer Credit Code, and
                                other applicable state laws regulating retail
                                installment sales contracts and loans in general
                                and motor vehicle retail installment contracts
                                and loans in particular; and the consummation of
                                the transactions herein contemplated, including,
                                without limitation, the transfer of ownership of
                                such Contract to the Issuer and the receipt of
                                interest by the Noteholders, will not violate
                                any applicable federal, state or local law.

                (x)             Such Contract is the legal, valid and binding
                                obligation of the related Obligor(s) thereunder
                                and is enforceable in accordance with its terms,
                                except only as such enforcement may be limited
                                by bankruptcy, insolvency or similar laws
                                affecting the enforcement of creditors' rights
                                generally; each party to such Contract had full
                                legal capacity to execute and deliver such
                                Contract and all other documents related thereto
                                and to grant the security interest purported to
                                be granted thereby; the terms of such Contract
                                have not been waived, amended or modified in any
                                respect, except by instruments that are part of
                                the related Contract Documents, and no such
                                waiver, amendment or modification has caused
                                such Contract to fail to meet all of the
                                representations, warranties and conditions set
                                forth herein with respect thereto.

                (xi)            Such Contract contains customary and enforceable
                                provisions such as to render the rights and
                                remedies of the holder or assignee thereof
                                adequate for the practical realization against
                                the collateral of the benefits of the security,
                                subject, as to enforceability, to bankruptcy,
                                insolvency, reorganization or similar laws
                                affecting the enforcement of creditors' rights
                                generally.

                (xii)           As of the related Prefunding Transfer Date, (a)
                                there is no default, breach, violation or event
                                permitting acceleration existing under such
                                Contract (except payment delinquencies permitted
                                by subparagraph (v) above), (b) there does not
                                exist any continuing condition that with notice
                                or lapse of time would constitute a default,
                                breach, violation or event permitting
                                acceleration existing under such Contract, and
                                (c) the Seller has not waived any such

                                      -35-
<PAGE>

                                default, breach, violation or event permitting
                                acceleration except payment delinquencies
                                permitted by subparagraph (v) above.

                (xiii)          As of the related Prefunding Transfer Date, each
                                related Financed Vehicle will be covered by the
                                Blanket Insurance Policy; each of Onyx and the
                                Seller shall at all times comply with all of the
                                provisions of such insurance policy applicable
                                to it so long as such insurance policy is in
                                effect.

                (xiv)           As of the related Prefunding Transfer Date, (a)
                                such Contract will require that the related
                                Obligor(s) obtain and maintain in effect for the
                                related Financed Vehicle a comprehensive and
                                collision insurance policy (i) in an amount at
                                least equal to the lesser of (x) its maximum
                                insurable value or (y) the principal amount due
                                from the related Obligor(s) under such Contract,
                                (ii) naming Onyx as a loss payee and (iii)
                                insuring against loss and damage due to fire,
                                theft, transportation, collision and other risks
                                generally covered by comprehensive and collision
                                coverage and (b) the Servicer shall have put in
                                place a vendor's single interest insurance
                                policy providing coverage upon repossession of
                                the related Financed Vehicle in an amount equal
                                to the lesser of the actual cash value of such
                                Financed Vehicle, the cost of repair or
                                replacement for such Financed Vehicle and the
                                unpaid balance of the related Contract. Each of
                                Onyx and the Seller shall at all times comply
                                with all of the provisions of such insurance
                                policies applicable to it.

                (xv)            Such Contract was acquired by Onyx from a Dealer
                                with which it ordinarily does business, and no
                                adverse selection procedures have been utilized
                                in selecting such Contract from all other
                                similar contracts purchased or originated by
                                Onyx or any subsidiary.

                (xvi)           Payments under such Contract have been applied
                                in accordance with Rule of 78's Method, the
                                Actuarial Method or the Simple Interest Method,
                                as provided in the applicable Contract, and are
                                due monthly in substantially equal amounts
                                through its Maturity Date sufficient to fully
                                amortize the principal balance of such Contract
                                by its Maturity Date.

                (xvii)          There is only one original of such Contract and
                                such original, together with all other related
                                Contract Documents, is being held by the
                                Custodian.

                (xviii)         As of the related Prefunding Transfer Date, the
                                Servicer has clearly marked its electronic
                                records to indicate that such Contract is then
                                owned by the Issuer.

                                      -36-
<PAGE>

                (xix)           At the date of origination of the Contract, the
                                original principal balance of such Contract was
                                not greater than the purchase price to the
                                related Obligor(s) (including taxes, warranties,
                                licenses and related charges) of the related
                                Financed Vehicle.

                (xx)            As of the related Prefunding Cut-Off Date, the
                                Seller has not received notice that any Obligor
                                under such Contract has filed for bankruptcy.

                (xxi)           Such Contract has an original maturity of not
                                more than 72 months, and as of the related
                                Prefunding Cut-Off Date, such Contract has a
                                remaining maturity of 72 months or less.

                (xxii)          As of the related Prefunding Cut-Off Date, such
                                Contract has a remaining principal balance of at
                                least $500.

                (xxiii)         As of the related Prefunding Cut-Off Date, such
                                Contract is secured by a Financed Vehicle that
                                has not been repossessed without reinstatement.

                (xxiv)          The Obligor on such Contract is either (a) a
                                natural person residing in any state or (b)
                                another entity, provided that a natural person
                                is a joint and several Obligor with respect to
                                such Contract.

                (xxv)           No more than 50% of the Prefunded Contracts
                                transferred to the Issuer as of any Prefunding
                                Transfer Date shall be originated in any one
                                state.

                (e) None of the foregoing representations and warranties shall
        be construed as, and the Seller is specifically not making, any
        representations and warranties regarding the collectibility of the
        Contracts or the future performance of the Contracts.

                (f) The Seller has not prepared any financial statement which
        accounts for the transfer of the Trust Property (other than the Policy
        and the Spread Account) hereunder to the Issuer in any manner other than
        as a sale of the Trust Property (other than the Policy and the Spread
        Account ) by it to the Issuer, and the Seller has not in any other
        non-income tax respect (including, but not limited to, for accounting
        purposes) accounted for or treated the transfer of the Trust Property
        (other than the Policy and the Spread Account) hereunder in any manner
        other than as a sale and absolute assignment to the Issuer of the
        Seller's full right, title and ownership interest in the Trust Property
        (other than the Policy and the Spread Account) to the Issuer.

        SECTION 2.03 REPURCHASE OF CERTAIN CONTRACTS.

        The representations and warranties of the Seller set forth in Section
2.02 with respect to each Contract and each of the conditions set forth in
Section 2.01(c) with respect to each transfer of Prefunded Contracts and Section
2.01(j) with respect to the Prefunding Closing Date and sale of Prefunded
Contracts shall survive delivery of the Contract Documents and shall continue
until

                                      -37-
<PAGE>

the termination of this Agreement. Upon discovery by the Seller, the Servicer,
the Insurer or a Responsible Officer of the Owner Trustee, the Indenture Trustee
or the Trust Agent that any of such representations and warranties was incorrect
or that any of such conditions was unsatisfied as of the time made or that any
of the Contract Documents relating to any such Contract has not been properly
executed by the Obligor or contains a material defect or has not been received
by the Custodian, such Person making such discovery shall give prompt notice to
the other such Persons. If any such defect, incorrectness or omission materially
and adversely affects the interest of the Noteholders, the Indenture Trustee,
the Issuer or the Insurer, the Seller shall cure the defect or eliminate or
otherwise cure the circumstances or condition in respect of which such
representation or warranty was incorrect as of the time made; provided that if
the Seller is unable to do so by the last day of the Collection Period following
the Collection Period (or, if the Seller elects, the last day of such Collection
Period) during which the Seller becomes aware of or receives written notice from
the Servicer, the Insurer or the Indenture Trustee of such defect, incorrectness
or omission, it shall repurchase such Contract on the last day of the applicable
Collection Period from the Issuer at the Purchase Amount. Upon any such
repurchase, the Issuer shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, as shall be necessary to vest in the
Seller any Contract purchased hereunder. The sole remedy of the Issuer, the
Indenture Trustee or the Noteholders with respect to a breach of the Seller's
representations and warranties pursuant to Section 2.02 shall be to require the
Seller to repurchase Contracts pursuant to this Section; provided, however, that
the Seller shall indemnify the Owner Trustee, the Trust Agent, the Indenture
Trustee, the Insurer, the Issuer and the Noteholders against all costs,
expenses, losses, damages, claims and liabilities, including reasonable fees and
expenses of counsel, which may be asserted against or incurred by any of them as
a result of third-party claims arising out of the events or facts giving rise to
such breach.

        SECTION 2.04 CUSTODY OF CONTRACT FILES.

                (a) Duties of Custodian. The Custodian shall:

                (i)             maintain continuous custody of the Contract
                                Documents in secure and fire resistant
                                facilities in accordance with customary
                                standards for such custody. Such Contract
                                Documents shall not be segregated to show the
                                Issuer as owner thereof and the Indenture
                                Trustee as the pledgee thereof, unless the
                                Insurer requires such segregation.

                (ii)            with respect to the Contract Documents, (A) act
                                exclusively as the Custodian for the benefit of
                                the Indenture Trustee and (B) hold all Contract
                                Documents for the exclusive use (notwithstanding
                                Sections 2.04(a)(iii) and 2.04(a)(iv) below) and
                                for the benefit of the Indenture Trustee.

                (iii)           in the event that the Servicer is not the
                                Custodian, to the extent the Servicer directs
                                the Custodian in writing, deliver certain
                                specified Contract Documents to the Servicer to
                                enable the Servicer to service the Contracts
                                pursuant to this Agreement. At such time as the
                                Servicer returns such Contract Documents to the
                                Custodian, the

                                      -38-
<PAGE>

                                Servicer shall provide written notice of such
                                return to the Custodian. The Custodian shall
                                acknowledge receipt of the returned materials by
                                signing the Servicer's notice and shall promptly
                                send copies of such acknowledgment or receipt to
                                the Servicer.

                (iv)            upon reasonable prior written notice, permit the
                                Servicer, the Indenture Trustee and the Insurer
                                to examine the Contract Documents in the
                                possession, or under the control, of the
                                Custodian.

                (v)             at its own expense, maintain at all times while
                                acting as Custodian, and keep in full force and
                                effect (A) fidelity insurance, (B) theft of
                                documents insurance, (C) fire insurance, and (d)
                                forgery insurance. All such insurance shall be
                                in amounts, with standard coverage and subject
                                to deductibles, as are customary for similar
                                insurance typically maintained by banks that act
                                as custodian in similar transactions.

                (b) Appointment of Custodian. As of the Closing Date, Onyx shall
        be the Custodian of the Contract Documents; provided, however, that (i)
        the Indenture Trustee (if the Notes have not been paid in full and the
        Indenture has not been satisfied and discharged) and the Issuer, with
        the consent of the Insurer, or (ii) the Insurer, may terminate such
        appointment at any time, with or without cause by written notice to the
        Custodian, and upon the execution by the Indenture Trustee at the
        direction of the Insurer (or, if the Notes have been paid in full and
        the Indenture has been satisfied and discharged, the Issuer at the
        direction of the Insurer) of a letter agreement substantially in the
        form of Exhibit A attached hereto (the "Appointment of Custodian"),
        revocably appointing such other entity acceptable to the Insurer as
        agent of and bailee for the Indenture Trustee (or, if applicable, the
        Trust) to act as Custodian (the "Successor Custodian") of the Contract
        Documents, such Successor Custodian shall be so appointed and shall from
        the effective date of such Appointment of Custodian retain custody of
        the Contract Documents and any and all other documents relating to a
        Contract or the related Obligor or Financed Vehicle. As of the effective
        date of such Appointment of Custodian, the Contract Documents and any
        and all other documents relating to a Contract or the related Obligor or
        Financed Vehicle will be delivered to the Successor Custodian in its
        capacity as agent of and bailee for the Indenture Trustee (or, if
        applicable, the Trust).

        For so long as the Servicer is the Custodian of the Contract Documents,
the Servicer need not maintain the Contract Documents held by it in a file area
physically separate from the other installment sales contracts or loans owned or
serviced by it or any of its Affiliates, unless the Insurer requires such
segregation.

        SECTION 2.05 DUTIES OF SERVICER RELATING TO THE CONTRACTS.

                (a) Safekeeping. The Servicer, in its capacity as servicer,
        shall hold the Contract Files and any Contract Documents held by it in
        accordance with this Agreement on

                                      -39-
<PAGE>

        behalf of the Issuer, the Indenture Trustee and the Insurer for the use
        and benefit of all present and future Noteholders, and maintain such
        accurate and complete accounts, records and computer systems pertaining
        to each Contract File as shall enable the Issuer to comply with this
        Agreement. In performing its duties as servicer, the Servicer shall act
        with reasonable care, using that degree of skill and attention that the
        Servicer exercises with respect to the files relating to all comparable
        automobile contracts that the Servicer owns or services for itself or
        others. The Servicer shall (i) conduct, or cause to be conducted,
        periodic physical inspections of the Contract Files (and the Contract
        Documents, if the Servicer is acting as Custodian) held by it under this
        Agreement and of the related accounts, records and computer systems;
        (ii) maintain the Contract Files (and the Contract Documents, if the
        Servicer is acting as Custodian) in such a manner as shall enable the
        Issuer, the Indenture Trustee and the Insurer to verify the accuracy of
        the Servicer's record keeping; (iii) promptly report to the Issuer, the
        Indenture Trustee and the Insurer any failure on its part to hold the
        Contract Files (and the Contract Documents, if the Servicer is acting as
        Custodian) and maintain its accounts, records and computer systems as
        herein provided and (iv) promptly take appropriate action to remedy any
        such failure.

                (b) Maintenance of and Access to Records. The Servicer shall
        maintain each Contract File (other than the Contract Documents, unless
        the Servicer is acting as Custodian) at the address of the Servicer set
        forth in Section 9.04, or at such other location as shall be specified
        to the Issuer, the Indenture Trustee and the Insurer by 30 days' prior
        written notice. The Servicer shall permit the Issuer, the Indenture
        Trustee and the Insurer or their respective duly authorized
        representatives, attorneys or auditors to inspect the Contract Files and
        the related accounts, records and computer systems maintained by the
        Servicer at such times as such Persons may request.

                (c) Release of Documents. If the Servicer is acting as Custodian
        pursuant to Section 2.04, upon instruction from the Indenture Trustee (a
        copy of which shall be furnished to the Issuer and the Insurer), the
        Servicer shall release any document in the Contract Files to the
        Indenture Trustee, the Indenture Trustee's agent, or the Indenture
        Trustee's designee, as the case may be, at such place or places as the
        Indenture Trustee may designate, as soon as practicable.

                (d) Monthly Reports. On the Servicer Report Date of each month,
        commencing with the month next succeeding the month of the Closing Date,
        the Servicer shall deliver to the Issuer, the Indenture Trustee and the
        Insurer a certificate of a Servicing Officer stating (i) the Contract
        Number and outstanding principal balance of each Contract that has
        become a Liquidated Contract since the Business Day immediately
        preceding the date of the last certificate delivered pursuant to this
        subsection (or since the Closing Date in the case of the first such
        certificate); (ii) that, if such Contract has been the subject of a Full
        Prepayment pursuant to clause (a) of the definition of the term "Full
        Prepayment" or is a Liquidated Contract pursuant to clause (iii) of the
        definition of the term "Liquidated Contract," all proceeds received in
        respect thereof have been deposited in or credited to the Collection
        Account in accordance with Section 4.02; (iii) that, if such Contract
        has been the subject of a Full Prepayment pursuant to clause (b) of the
        definition of the term "Full Prepayment," the correct Purchase Amount
        has been deposited in or credited to the

                                      -40-
<PAGE>

        Collection Account in accordance with Section 2.03, 3.07 or 4.02; (iv)
        that, if such Contract is a Liquidated Contract pursuant to clause (ii)
        of the definition of the term "Liquidated Contract," there have been
        deposited in or credited to the Collection Account the related Net
        Liquidation Proceeds in accordance with Section 4.02; and (v) that the
        Indenture Trustee is authorized to release such Contract and the related
        Contract Documents as provided herein.

                (e) Schedule of Title Documents. The Servicer shall deliver to
        the Indenture Trustee, the Issuer and the Insurer (i) within 60 days of
        the Closing Date with respect to the Funded Contracts and within 60 days
        of the Prefunding Closing Date with respect to the Prefunded Contracts,
        a schedule of Title Documents for Financed Vehicles which, as of the
        Closing Date or the Prefunding Closing Date, as applicable, did not show
        Onyx as first lienholder and (ii) within 180 days of the Closing Date
        with respect to the Funded Contracts and within 180 days of the
        Prefunding Closing Date with respect to the Prefunded Contracts, a
        schedule of Title Documents for Financed Vehicles which, as of the date
        prior to such delivery, do not show Onyx as first lienholder and as to
        which the Seller is obligated to repurchase pursuant to the provisions
        hereof.

                (f) Electronic Marking of Contracts; Possession. The Servicer
        shall cause the electronic record of the Contracts maintained by it to
        be clearly marked to indicate that the Contracts have been sold to the
        Issuer and shall not in any way assert or claim an ownership interest in
        the Contracts. It is intended that pursuant to the applicable provisions
        of Sections 2.04 and 2.05 hereof and the Appointment of Custodian, the
        Custodian on behalf of the Indenture Trustee and the Insurer shall be
        deemed to have possession of the Contract Documents for purposes of
        Section 9-305 of the UCC of the state in which the Contract Documents
        are located.

        SECTION 2.06 INSTRUCTIONS; AUTHORITY TO ACT.

        The Servicer shall be deemed to have received proper instructions (a
copy of which shall be furnished to the Issuer and the Insurer) with respect to
the Contract Files upon its receipt of written instructions signed by a
Responsible Officer of the Indenture Trustee.

        SECTION 2.07 INDEMNIFICATION.

        Subject to Section 7.02, the Servicer shall indemnify the Issuer, the
Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian and the Noteholders for any and all liabilities, obligations, losses,
compensatory damages, payments, costs or expenses of any kind whatsoever
(including the reasonable fees and expenses of counsel) that may be imposed on,
incurred by or asserted against the Issuer, the Owner Trustee, the Trust Agent,
the Indenture Trustee, the Insurer, the Custodian or the Noteholders as the
result of any improper act or omission in any way relating to the maintenance
and custody by the Servicer of the Contract Files, or the failure of the
Servicer to perform its duties and service the Contracts in compliance with the
terms of this Agreement; provided, however, that the Servicer shall not be
liable to the Owner Trustee, the Trust Agent, the Indenture Trustee, the
Custodian or the Insurer for any portion of any such amount resulting from the
willful misfeasance, bad faith or negligence of the Owner Trustee, the Trust
Agent, the Indenture Trustee, the Custodian or the Insurer,

                                      -41-
<PAGE>

respectively. The Servicer shall also indemnify and hold harmless the Issuer,
the Trust Property, the Noteholders, the Custodian, the Indenture Trustee, the
Trust Agent and the Insurer against any taxes that may be asserted at any time
against any of them with respect to the Contracts, including any sales, gross
receipts, general corporation, personal property, privilege or license taxes
(but exclusive of federal or other income taxes arising out of payments on the
Contracts) and the costs and expenses in defending against such taxes. The
Servicer shall (i) immediately notify the Issuer and the Indenture Trustee if a
claim is made by a third party with respect to the Contracts, (ii) assume, with
the consent of the Issuer, the Indenture Trustee and the Insurer, the defense of
any such claim, (iii) pay all expenses in connection therewith, including
counsel fees, and (iv) promptly pay, discharge and satisfy any judgment or
decree which may be entered against the Servicer, the Issuer, the Owner Trustee,
the Trust Agent, the Indenture Trustee, the Insurer, the Custodian or the
Noteholders with respect to such Contracts.

        SECTION 2.08 EFFECTIVE PERIOD AND TERMINATION.

        The appointment of Onyx as custodian shall become effective as of the
Closing Date and shall continue in full force and effect until the earlier of
(i) the execution of the Appointment of Custodian or (ii) the Class A-4 Final
Scheduled Distribution Date. If Onyx shall subsequently resign as Servicer in
accordance with the terms of this Agreement or if all of the rights and
obligations of the Servicer shall have been terminated pursuant to Section 7.01,
the appointment of the Servicer as Custodian may be terminated by the Insurer,
or if an Insurer Default has occurred and is continuing, by Holders evidencing
not less than 25% of the outstanding principal amount of the Notes, acting
together as a single Class, or by the Indenture Trustee. As soon as practicable
after any termination of such appointment, Onyx as Custodian and Onyx as
Servicer shall, at the Servicer's expense, deliver or cause the delivery of all
Contract Documents and all Contract Files (including those held in microfiche or
electronic form) to the Indenture Trustee or its agent (or, if the Indenture has
been satisfied and discharged, as directed by the Trust, with the consent of the
Insurer) at such place or places as the applicable party may reasonably
designate and shall cooperate in good faith to effect such delivery. The
foregoing notwithstanding, if the Servicer is acting as Custodian, the Servicer
shall, at the request of the Insurer, deliver the Contract Documents to the
Indenture Trustee in the event that such delivery is required by any Rating
Agency to consider the Notes investment grade without consideration of the
Policy.

        SECTION 2.09 NONPETITION COVENANT.

                (a) Neither the Seller nor the Servicer shall petition or
        otherwise invoke the process of any court or government authority for
        the purpose of commencing or sustaining a case against the Issuer under
        any federal or state bankruptcy, insolvency or similar law or appointing
        a receiver, liquidator, assignee, trustee, custodian, sequestrator or
        other similar official of the Issuer or any substantial part of its
        property, or ordering the winding up or liquidation of the affairs of
        the Issuer.

                (b) The Servicer shall not, nor cause the Seller to, petition or
        otherwise invoke the process of any court or government authority for
        the purpose of commencing or sustaining a case against the Seller under
        any federal or state bankruptcy, insolvency or similar law or appointing
        a receiver, liquidator, assignee, trustee, custodian, sequestrator

                                      -42-
<PAGE>

        or other similar official of the Seller or any substantial part of its
        property, or ordering the winding up or liquidation of the affairs of
        the Seller.

        SECTION 2.10 COLLECTING TITLE DOCUMENTS NOT DELIVERED AT THE CLOSING
DATE.

        In the case of any Funded Contract or Prefunded Contract in respect of
which, in place of a Title Document, the Custodian received on the Closing Date
or the Prefunding Closing Date, as applicable, written evidence from the Dealer
selling the related Financed Vehicle that, or otherwise in respect of which, the
Title Document for such Financed Vehicle showing Onyx as first lienholder has
been applied for from the Registrar of Titles, the Servicer shall use its best
efforts to collect (or to obtain evidence in the electronic title records of)
such Title Document from the Registrar of Titles as promptly as possible. If
such Title Document showing Onyx as first lienholder is not received by the
Servicer (or verified by the Servicer in the electronic title records) within
180 days after the Closing Date with respect to the Funded Contracts or within
180 days after the Prefunding Closing Date with respect to the Prefunded
Contracts, then the representation and warranty in Section 2.02(b)(iii) as to
any such Funded Contracts or the representation and warranty in Section
2.02(d)(iii) as to any such Prefunded Contracts in respect of such Contract
shall be deemed to have been incorrect in a manner that materially and adversely
affects the Noteholders, and the Seller shall be obligated to repurchase such
Contract in accordance with Section 2.03.

                                   ARTICLE III

                    ADMINISTRATION AND SERVICING OF CONTRACTS

        SECTION 3.01 DUTIES OF SERVICER.

        The Servicer shall manage, service, administer, and make collections on
the Contracts. The Servicer agrees that its servicing of the Contracts shall be
carried out in accordance with reasonable care and, to the extent more exacting,
the procedures used by the Servicer in respect of such contracts serviced by it
for its own account; provided, however, that, subject to Section 3.02 as to
extensions, the Servicer shall not release or waive the right to collect the
unpaid balance of any Contract. The Servicer's duties shall include collection
and posting of all payments, responding to inquiries of Obligors on the
Contracts, investigating delinquencies, sending payment coupons to Obligors,
reporting tax information to Obligors, accounting for collections, furnishing
monthly and annual statements to the Indenture Trustee, the Issuer and the
Insurer with respect to distributions and the preparation of U.S. Partnership
Tax Returns (Form 1065) for the Owner Trustee to sign and file on an annual
basis, based on a tax year for the Issuer that is the calendar year and any
other tax forms required by any federal, state or local tax authority including
with respect to original issue discount, if any. The Servicer shall have,
subject to the terms hereof, full power and authority, acting alone, and subject
only to the specific requirements and prohibitions of this Agreement, to do any
and all things in connection with such managing, servicing, administration, and
collection that it may deem necessary or desirable; provided, however, that the
Servicer shall commence repossession efforts in respect of any Financed Vehicle
when any payment on the related Contract of which is four or more

                                      -43-
<PAGE>

months delinquent. Without limiting the generality of the foregoing, but subject
to the provisions of this Agreement, the Servicer is authorized and empowered by
the Indenture Trustee and the Issuer to execute and deliver, on behalf of
itself, the Issuer, the Insurer, the Noteholders, the Indenture Trustee or any
of them, any and all instruments of satisfaction or cancellation, or partial or
full release or discharge, and all other comparable instruments, with respect to
the Contracts or to the Financed Vehicles. The Issuer shall furnish the Servicer
any documents necessary or appropriate to enable the Servicer to carry out its
servicing and administrative duties hereunder. The Servicer may engage agents
and subservicers to fulfill its duties hereunder; provided, however, that the
Servicer shall remain at all times personally liable for the acts (and failures
to act) of such agents and subservicers.

        On or prior to the Closing Date, the Servicer shall deliver to the Owner
Trustee, the Trust Agent, the Indenture Trustee and the Insurer a list of
Servicing Officers of the Servicer involved in, or responsible for, the
administration and servicing of the Contracts, which list shall from time to
time be updated by the Servicer on request of the Owner Trustee, the Trust
Agent, the Indenture Trustee or the Insurer.

        On the Closing Date, the Servicer shall deposit in the Collection
Account (i) all installments of Monthly P&I due on or after the Initial Cut-Off
Date and received by the Servicer at least two Business Days prior to the
Closing Date; (ii) the proceeds of each Full Prepayment of any Contract and all
partial prepayments on Simple Interest Contracts received by the Servicer on or
after the Initial Cut-Off Date and at least two Business Days prior to the
Closing Date; and (iii) all Net Liquidation Proceeds and Net Insurance Proceeds
received with respect to a Financed Vehicle to which an Initial Contract relates
received on or after the Initial Cut-Off Date and at least two Business Days
prior to the Closing Date.

        On each Prefunding Transfer Date, the Servicer shall deposit in the
Collection Account (i) all installments of Monthly P&I due on or after the
related Prefunding Cut-Off Date and received by the Servicer at least two
Business Days prior to such Prefunding Transfer Date; (ii) the proceeds of each
Full Prepayment of any Prefunded Contract and all partial prepayments on Simple
Interest Contracts received by the Servicer on or after the related Prefunding
Cut-Off Date and at least two Business Days prior to such Prefunding Transfer
Date; and (iii) all Net Liquidation Proceeds and Net Insurance Proceeds received
with respect to a Financed Vehicle to which a Prefunded Contract being
transferred on such date relates, received on or after the related Prefunding
Cut-Off Date and at least two Business Days prior to such Prefunding Transfer
Date.

        Subject to Section 4.02(a) respecting deposits in the Payahead Account,
the Servicer shall deposit in or credit to the Collection Account within two
Business Days of receipt all collections of Monthly P&I due on or after the
related Cut-Off Date received by it on the Contracts together with the proceeds
of all Full Prepayments on all Contracts and all partial prepayments on Simple
Interest Contracts, and any accompanying interest. The Servicer shall likewise
deposit in the Collection Account within two Business Days of receipt all Net
Liquidation Proceeds and Net Insurance Proceeds. As of the last day of each
Collection Period, all amounts received in each Collection Period shall be
applied by the Servicer with respect to each Contract, first, to the Servicer as
additional servicing compensation any amounts due for late fees, extension fees
or similar charges, second to the payment of Monthly P&I, and third, in

                                      -44-
<PAGE>

the case of partial prepayments on Precomputed Contracts, to the Payahead
Account. The foregoing requirements for deposit in the Collection Account are
exclusive, it being understood that collections in the nature of late payment
charges or extension fees may, but need not, be deposited in the Collection
Account and may be retained by the Servicer as additional servicing
compensation.

        With respect to payments of Monthly P&I made by Obligors to the
Servicer's lock box, the Servicer shall direct the Person maintaining the lock
box to deposit the amount collected on the Contracts within one Business Day to
the Clearing Account. Such amounts shall be withdrawn from the Clearing Account
and deposited in the Collection Account no later than the next following
Business Day.

        In order to facilitate the servicing of the Contracts by the Servicer,
the Servicer shall retain, subject to and only to the extent permitted by the
provisions of this Agreement, all collections on the Contracts prior to the time
they are remitted or credited, in accordance with such provisions, to the
Collection Account or the Payahead Account, as the case may be. The Servicer
acknowledges that the unremitted collections on the Contracts are part of the
Trust Property and the Servicer agrees to act as custodian and bailee of the
Indenture Trustee, the Issuer and the Insurer in holding such monies and
collections. The Servicer agrees, for the benefit of the Indenture Trustee, the
Issuer, the Noteholders and the Insurer, to act as such custodian and bailee,
and to hold and deal with such monies and such collections, as custodian and
bailee for the Indenture Trustee, the Issuer and the Insurer, in accordance with
the provisions of this Agreement.

        The Servicer shall retain all data (including, without limitation,
computerized title records) relating directly to or maintained in connection
with the servicing of the Contracts at the address of the Servicer set forth in
Section 9.04 or, upon 15 days' notice to the Issuer, the Indenture Trustee and
the Insurer, at such other place where the servicing offices of the Servicer are
located, and shall give the Issuer, the Indenture Trustee and the Insurer access
to all data (including, without limitation, computerized title records) at all
reasonable times, and, while a Servicer Default shall be continuing, the
Servicer shall, on demand of the Issuer, the Indenture Trustee or the Insurer
deliver or cause to be delivered to the Issuer, the Indenture Trustee or the
Insurer, as the case may be, all data (including, without limitation,
computerized title records and, to the extent transferable, related operating
software) necessary for the servicing of the Contracts and all monies collected
by it and required to be deposited in or credited to the Collection Account or
the Payahead Account, as the case may be.

        All deposits made by the Servicer in any Trust Account shall be made in
immediately available funds.

        The Servicer shall be responsible for the payment of the fees of the
Indenture Trustee, the Owner Trustee and the Trust Agent; provided that any such
fees not paid as of a Distribution Date shall be paid as provided in Section
4.03(ii).

                                      -45-
<PAGE>

        SECTION 3.02 COLLECTION OF CONTRACT PAYMENTS.

        The Servicer shall use its best efforts to collect all payments called
for under the terms and provisions of the Contracts as and when the same shall
become due and shall use its best efforts to cause each Obligor to make all
payments in respect of his or her Contract to the Servicer. Consistent with the
foregoing, the Servicer may in its discretion (i) waive any late payment charges
in connection with delinquent payments on a Contract or prepayment charges and
(ii) in order to work out a default or an impending default due to the financial
condition of an Obligor, grant up to six extensions of the Due Date of any
payment for periods of 30 days or less, such that the Maturity Date of no
Contract shall, under any circumstances, extend more than 180 days past the
originally scheduled date of the last payment on such Contract and in no event
beyond the Class A-4 Final Scheduled Distribution Date; provided, further, that
no more than two such extensions can be granted consecutively, no more than
three such extensions can be granted during any 12 month period and at least
three payments must be made between non-consecutive extensions. The Servicer
shall not extend the Maturity Date of a Contract except as provided in clause
(ii) of the preceding sentence. Except as explicitly permitted by this
paragraph, the Servicer shall not change any material term of a Contract,
including but not limited to the interest rate, the payment amounts or due
dates, or the property securing such Contract.

        SECTION 3.03 REALIZATION UPON CONTRACTS.

        The Servicer shall use its best efforts, consistent with the servicing
standard specified in Section 3.01, to repossess or otherwise convert the
ownership of the Financed Vehicle securing any Contract as to which no
satisfactory arrangements can be made for collection of delinquent payments. In
connection with such repossession or other conversion, the Servicer shall follow
such practices and procedures as it shall deem necessary or advisable and as
shall be normal and usual for prudent holders of retail installment sales
contracts and as shall be in compliance with all applicable laws, and, in
connection with the repossession of any Financed Vehicle or any contract in
default, may commence and prosecute any proceedings in respect of such Contract
in its own name or, if the Servicer deems it necessary, in the name of the
Issuer or the Indenture Trustee or on behalf of the Issuer or the Indenture
Trustee. The Servicer's obligations under this Section are subject to the
provision that, in the case of damage to a Financed Vehicle from an uninsured
cause, the Servicer shall not be required to expend its own funds in repairing
such motor vehicle unless it shall determine (i) that such restoration will
increase the proceeds of liquidation of the related Contract, after
reimbursement to itself for such expenses and (ii) that such expenses will be
recoverable by it either as Liquidation Expenses or as expenses recoverable
under an applicable insurance policy or under an insurance reserve established
by the Servicer. The Servicer shall be responsible for all other costs and
expenses incurred by it in connection with any action taken in respect of a
Defaulted Contract; provided, however, that it shall be entitled to
reimbursement of such costs and expenses to the extent they constitute
Liquidation Expenses or expenses recoverable under an applicable insurance
policy. All Net Liquidation Proceeds and Net Insurance Proceeds shall be
deposited directly in or credited to the Collection Account (without deposit in
any intervening account) to the extent required by Section 4.02.

                                      -46-
<PAGE>

        SECTION 3.04 INSURANCE.

        The Servicer shall cause to be maintained the Blanket Insurance Policy,
and the Servicer shall cause the Indenture Trustee to be the named payee
thereunder with respect to the Contracts; provided, however, that this
obligation may be eliminated or modified in any manner (and this Agreement shall
be amended in accordance with any such elimination or modification as the
parties to the Insurance Agreement and the Rating Agencies may agree) with the
consent of the Insurer but without any requirement to obtain the consent of any
Noteholders.

        SECTION 3.05 MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES.

        The Servicer shall take such steps as are necessary to maintain
continuous perfection and priority of the security interest created by each
Contract in the related Financed Vehicle, including but not limited to,
obtaining the execution by the related Obligor and the recording, registering,
filing, re-recording, re-registering, and refiling of all security agreements,
financing statements, continuation statements or other instruments as are
necessary to maintain the security interest granted by such Obligor under each
respective Contract. The Issuer and the Indenture Trustee each hereby authorize
the Servicer to take such steps as are necessary to re-perfect such security
interest on behalf of the Issuer in the event of the relocation of a Financed
Vehicle or for any other reason. In the event that the assignment of a Contract
to the Issuer and the subsequent pledge thereof by the Issuer to the Indenture
Trustee is insufficient, without a notation on the related Financed Vehicle's
certificate of title (or, if applicable, the electronic title record), or
without fulfilling any additional administrative requirements under the laws of
the state in which the Financed Vehicle is located, to grant to the Issuer a
perfected security interest in the related Financed Vehicle and to pledge such
perfected security interest to the Indenture Trustee, Onyx hereby agrees that
the identification of Onyx as the secured party on the certificate of title (or,
if applicable, the electronic title record) is deemed to be in its capacity as
agent of the Indenture Trustee and further agrees to hold such certificate of
title (or, if applicable, the electronic title record) as the Indenture
Trustee's agent and custodian; provided that, except as provided in Section 7.01
and the Insurance Agreement, neither the Servicer nor Onyx shall make, nor shall
the Issuer or Noteholders have the right to require that the Servicer or Onyx
make, any such notation on the related Financed Vehicles' certificate of title
(or, if applicable, the electronic title record) or fulfill any such additional
administrative requirement of the laws of the state in which a Financed Vehicle
is located.

        SECTION 3.06 COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER.

        The Servicer hereby makes the following covenants, representations and
warranties on which (i) the Issuer is deemed to have relied in acquiring the
Contracts and (ii) the Insurer is deemed to have relied in issuing the Policy.
Such covenants, representations and warranties speak as of the execution and
delivery of this Agreement and as of the Closing Date or the related Prefunding
Transfer Date, as applicable, but shall survive the sale, transfer and
assignment of the Contracts to the Issuer and the pledge thereof to the
Indenture Trustee pursuant to the Indenture.

                (a) The Servicer covenants as to the Contracts:

                                      -47-
<PAGE>

                (i)             The Financed Vehicle securing each Contract
                                shall not be released from the lien granted by
                                the Contract in whole or in part, except as
                                contemplated herein.

                (ii)            The Servicer shall not impair the rights of the
                                Noteholders or the Insurer in the Contracts.

                (iii)           The Servicer shall not increase the number of
                                payments under a Contract, nor increase the
                                amount financed under a Contract, nor extend or
                                forgive payments on a Contract, except as
                                provided in Section 3.02.

                (iv)            The Servicer may consent to the sale or transfer
                                by an Obligor of any Financed Vehicle if the
                                original Obligor under the related Contract
                                remains liable under such Contract and the
                                transferee assumes all of the Obligor's
                                obligations thereunder and upon doing so the
                                credit profile with respect to such Obligor will
                                not be changed from adequate to speculative by
                                virtue of the addition of the transferee's
                                obligation thereunder.

                (b) The Servicer represents and warrants as of the Closing Date:

                (i)             The Servicer (1) has been duly organized, is
                                validly existing and in good standing as a
                                corporation organized and existing under the
                                laws of the State of Delaware, (2) has qualified
                                to do business as a foreign corporation and is
                                in good standing in each jurisdiction where the
                                character of its properties or the nature of its
                                activities makes such qualification necessary,
                                and (3) has full power, authority and legal
                                right to own its property, to carry on its
                                business as presently conducted, and to enter
                                into and perform its obligations under this
                                Agreement.

                (ii)            The execution and delivery by the Servicer of
                                this Agreement are within the corporate power of
                                the Servicer and have been duly authorized by
                                all necessary corporate action on the part of
                                the Servicer. Neither the execution and delivery
                                of this Agreement, nor the consummation of the
                                transactions herein contemplated, nor compliance
                                with the provisions hereof, will conflict with
                                or result in a breach of, or constitute a
                                default under, any of the provisions of any law,
                                governmental rule, regulation, judgment, decree
                                or order binding on the Servicer or its
                                properties or the Certificate of Incorporation
                                or Bylaws of the Servicer, or any of the
                                provisions of any indenture, mortgage, contract
                                or other instrument to which the Servicer is a
                                party or by which it is bound or result in the
                                creation or imposition of any lien, charge or
                                encumbrance upon any of its property pursuant to
                                the terms of any such indenture, mortgage,
                                contract or other instrument.

                                      -48-
<PAGE>

                (iii)           Other than consents that have been obtained
                                prior to the Closing Date, the Servicer is not
                                required to obtain the consent of any other
                                party or any consent, license, approval or
                                authorization, or registration or declaration
                                with, any governmental authority, bureau or
                                agency in connection with the execution,
                                delivery, performance, validity or
                                enforceability of this Agreement.

                (iv)            This Agreement has been duly executed and
                                delivered by the Servicer and, assuming the due
                                authorization, execution and delivery hereof by
                                the Issuer, the Trust Agent and the Indenture
                                Trustee, constitutes a legal, valid and binding
                                obligation of the Servicer enforceable against
                                the Servicer in accordance with its terms
                                (subject to applicable bankruptcy and insolvency
                                laws and other similar laws affecting the
                                enforcement of creditors' rights generally).

                (v)             There are no actions, suits or proceedings
                                pending or, to the knowledge of the Servicer,
                                threatened against or affecting the Servicer,
                                before or by any court, administrative agency,
                                arbitrator or governmental body with respect to
                                any of the transactions contemplated by this
                                Agreement, or which will, if determined
                                adversely to the Servicer, materially and
                                adversely affect it or its business, assets,
                                operations or condition, financial or otherwise,
                                or materially and adversely affect the
                                Servicer's ability to perform its obligations
                                under this Agreement. The Servicer is not in
                                default with respect to any order of any court,
                                administrative agency, arbitrator or
                                governmental body so as to materially and
                                adversely affect the transactions contemplated
                                by the above-mentioned documents.

                (vi)            The Servicer has obtained or made all necessary
                                consents, approvals, waivers and notifications
                                of creditors, lessors and other nongovernmental
                                persons, in each case, in connection with the
                                execution and delivery of this Agreement, and
                                the consummation of all the transactions herein
                                contemplated.

        SECTION 3.07 PURCHASE OF CONTRACTS UPON BREACH BY SERVICER.

        The Servicer or the Issuer shall inform the other party and the
Indenture Trustee and the Insurer promptly, in writing, upon the discovery of
any breach of the covenants, representations and warranties set forth in Section
3.06 or of the covenants set forth in Sections 3.02 or 3.05. Unless the breach
shall have been cured within 30 days following such discovery or receipt of
notice of such breach, the Servicer shall purchase any Contract materially and
adversely affected by such breach from the Issuer. As consideration for the
Contract, the Servicer shall remit the Purchase Amount on the Business Day
preceding the Servicer Report Date next succeeding the end of such 30-day cure
period in the manner specified in Section 4.02(a). The sole remedy of the
Issuer, the Indenture Trustee, or the Noteholders with respect to a breach of
Section 3.02,

                                      -49-
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3.05 or 3.06 shall be to require the Servicer to purchase Contracts pursuant to
this Section 3.07; provided, however, that the Servicer shall indemnify the
Owner Trustee, the Indenture Trustee, the Insurer, the Issuer, the Custodian and
the Noteholders against all costs, expenses, losses damages, claims and
liabilities, including reasonable fees and expenses of counsel, which may be
asserted against or incurred by any of them as a result of third-party claims
arising out of the events or facts giving rise to such breach.

        Any successor Servicer appointed pursuant to Section 7.02 shall not be
obligated to purchase Contracts pursuant to this Section 3.07 with respect to
any breaches by any prior Servicer.

        SECTION 3.08 SERVICING COMPENSATION.

        As compensation for the performance of its obligations under this
Agreement and subject to the terms of this Section, the Servicer shall be
entitled to receive on each Distribution Date the Servicing Fee in respect of
each Contract that was Outstanding at the beginning of the Collection Period
ending immediately prior to such Distribution Date; provided, however, that with
respect to the first Distribution Date the Servicer will be entitled to receive
the Servicing Fee in respect of each Outstanding Initial Contract as of the
Initial Cut-Off Date. As servicing compensation in addition to the Servicing
Fee, the Servicer shall be entitled (i) to retain all late payment charges,
extension fees and similar items paid in respect of, under the circumstances and
in the manner set forth in the Contracts, (ii) to receive, in respect of each
Rule of 78's Contract that is prepaid in full prior to its Maturity Date, the
amount by which the outstanding principal balance of such Contract (determined
in accordance with the Rule of 78's Method) exceeds the Principal Balance of
such Contract at the time of such prepayment and (iii) to receive all investment
earnings on funds credited to the Collection Account and the Payahead Account;
provided, however, that the Servicer agrees that each amount payable to it
pursuant to clause (ii) of this Section shall be deposited in the Spread Account
and applied in accordance with the Insurance Agreement. The Servicer shall pay
all expenses incurred by it in connection with its servicing activities
hereunder and shall not be entitled to reimbursement of such expenses except to
the extent provided in Section 3.03.

        SECTION 3.09 REPORTING BY THE SERVICER.

                (a) No later than 3:00 p.m. New York City time on each Servicer
        Report Date, the Servicer shall deliver (by telex, facsimile, electronic
        transmission, first class mail, overnight courier or personal delivery)
        to the Issuer, the Trust Agent, the Indenture Trustee and the Insurer a
        statement (the "Distribution Date Statement") setting forth with respect
        to the next succeeding Distribution Date:

                (i)             the Note Interest Distributable Amount for such
                                Distribution Date;

                (ii)            the Note Principal Distributable Amount for such
                                Distribution Date and the portion of the Note
                                Principal Distributable Amount, if any,
                                constituting the Accelerated Principal
                                Distributable Amount;

                (iii)           the Note Distributable Amount for such
                                Distribution Date;

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<PAGE>

                (iv)            the Premium payable to the Insurer;

                (v)             the amount to be on deposit in the Spread
                                Account on such Distribution Date, before and
                                after giving effect to deposits thereto and
                                withdrawals therefrom to be made in respect of
                                such Distribution Date;

                (vi)            the amount of the withdrawal, if any, required
                                to be made from the Spread Account by the
                                Indenture Trustee pursuant to Section 4.04(b);

                (vii)           the aggregate Servicing Fee with respect to the
                                Contracts for the related Collection Period;

                (viii)          the amount of fees paid to the Owner Trustee,
                                the Indenture Trustee and Trust Agent with
                                respect to the related Collection Period;

                (ix)            the amount of any Note Interest Carryover
                                Shortfall and Note Principal Carryover Shortfall
                                on such Distribution Date and the change in such
                                amounts from those with respect to the
                                immediately preceding Distribution Date;

                (x)             the number of, and aggregate amount of, monthly
                                principal and interest payments due on the
                                Contracts which are delinquent as of the end of
                                the related Collection Period presented on a
                                30-day, 60-day and 90-day basis;

                (xi)            the Net Collections and the Policy Claim Amount,
                                if any, for such Distribution Date;

                (xii)           the aggregate amount of Liquidation Proceeds
                                received for Defaulted Contracts;

                (xiii)          the net credit losses and Cram Down Losses for
                                the Collection Period;

                (xiv)           the number and net outstanding balance of
                                Contracts for which the Financed Vehicle has
                                been repossessed;

                (xv)            the Pool Balance;

                (xvi)           for each Distribution Date occurring during and
                                immediately following the end of the Funding
                                Period, the amount on deposit in each of the
                                Prefunding Account and the Capitalized Interest
                                Account on such Distribution Date, before and
                                after giving effect to withdrawals therefrom to
                                be made in respect of such Distribution Date;
                                and

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                (xvii)          for the Mandatory Partial Redemption Date, the
                                Mandatory Partial Redemption Amount, if any.

Each such Distribution Date Statement shall be accompanied by an Officers'
Certificate of the Servicer, which Officers' Certificate shall state that the
computations reflected in such statement were made in conformity with the
requirements of this Agreement.

                (b) On each Servicer Report Date, the Servicer shall deliver to
        the Issuer, the Trust Agent, the Indenture Trustee and the Insurer a
        report, in respect of the immediately preceding Collection Period,
        setting forth the following:

                (i)             the aggregate amount, if any, paid by or due
                                from it for the purchases of Contracts which the
                                Seller or the Servicer has become obligated to
                                repurchase or purchase pursuant to Sections 2.03
                                or 3.07;

                (ii)            the net amount of funds which have been
                                deposited in or credited to the Collection
                                Account or the Payahead Account in respect of
                                such Collection Period (including amounts, if
                                any, collected during the next preceding
                                Collection Period and deposited in the Payahead
                                Account pursuant to Section 4.02) after giving
                                effect to all permitted deductions therefrom
                                pursuant to Section 4.02;

                (iii)           with respect to each Contract that became a
                                Liquidated Contract during the Collection
                                Period, the following information:

                                        (A) its Contract Number;

                                        (B) the effective date as of which such
                        Contract became a Liquidated Contract;

                                        (C) its Monthly P&I and Principal
                        Balance as of the close of business on the last day of
                        the preceding Collection Period (or as of the Closing
                        Date in the case of the first Distribution Date); and

                                        (D) if less than 100% of the outstanding
                        principal balance of and accrued and unpaid interest was
                        recovered on such Liquidated Contract, the amount of the
                        Net Liquidation Proceeds or Net Insurance Proceeds;

                (iv)            with respect to each Contract which was the
                                subject of a Full Prepayment during such
                                Collection Period, the following information:

                                        (A) its Contract Number; and

                                        (B) the date of such Full Prepayment;

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<PAGE>

                (v)             the Contract Numbers, Monthly P&I, Principal
                                Balances and Maturity Dates of all Contracts
                                which became Defaulted Contracts during such
                                Collection Period;

                (vi)            any other information relating to the Contracts
                                reasonably requested by the Owner Trustee, the
                                Trust Agent, the Indenture Trustee or the
                                Insurer;

                (vii)           the amount of Net Liquidation Proceeds and Net
                                Insurance Proceeds which have been deposited in
                                or credited to the Collection Account in respect
                                of the Collection Period ending immediately
                                prior to such Servicer Report Date and the
                                cumulative amount of Net Liquidation Proceeds
                                and Net Insurance Proceeds deposited in or
                                credited to the Collection Account during the
                                preceding Collection Periods;

                (viii)          with respect to each Distribution Date during
                                and immediately following the end of the Funding
                                Period, the Capitalized Interest Amount, if any,
                                with respect to the related Collection Period
                                and the amount, if any, withdrawn from the
                                Capitalized Interest Account pursuant to this
                                Agreement;

                (ix)            during the Funding Period, the remaining balance
                                in the Prefunding Account; and

                (x)             for the Mandatory Partial Redemption Date, the
                                Mandatory Partial Redemption Amount, if any.

        SECTION 3.10 ANNUAL STATEMENT AS TO COMPLIANCE.

                (a) The Servicer shall deliver to the Issuer, the Trust Agent,
        the Indenture Trustee and the Insurer, on or before March 31, 2003 and
        on or before March 31 of each fiscal year thereafter, an Officers'
        Certificate of the Servicer stating that (i) a review of the activities
        of the Servicer during the preceding fiscal year (since the Closing Date
        in the case of the first of such Officers' Certificates required to be
        delivered) and of its performance under this Agreement has been made
        under such officers' supervision and (ii) to the best of such officers'
        knowledge, based on such review, the Servicer has fulfilled all its
        obligations under this Agreement throughout such year and that no
        default under this Agreement has occurred and is continuing, or, if
        there has been a default in the fulfillment of any such obligation,
        specifying each such default known to such officer and the nature and
        status thereof.

                (b) The Servicer shall deliver to the Issuer, the Trust Agent,
        the Indenture Trustee, the Insurer and each Rating Agency promptly after
        having obtained knowledge thereof, but in no event later than five
        Business Days thereafter, an Officer's Certificate specifying any event
        which with the giving of notice or lapse of time, or both, would become
        a Servicer Default under Section 7.01.

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<PAGE>

        SECTION 3.11 ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT.

        On or before March 31, 2003 and on or before March 31 of each fiscal
year thereafter, the Servicer at its expense shall cause a firm of nationally
recognized independent certified public accountants (who may also render other
services to the Servicer) to furnish a report to the Issuer, the Trust Agent,
the Indenture Trustee and the Insurer to the effect that (i) they have audited
the balance sheet of the Servicer as of the last day of said fiscal year and the
related statements of operations, retained earnings and cash flows for such
fiscal year and have issued an opinion thereon, specifying the date thereof,
(ii) they have also reviewed the reports delivered by the Servicer pursuant to
Section 3.09(b) and certain other documents and the records relating to the
servicing of the Contracts and the distributions on the Notes under this
Agreement, (iii) their audit and review as described under clauses (i) and (ii)
above was made in accordance with generally accepted auditing standards and
accordingly included such tests of the accounting records and such other
auditing procedures as they considered necessary in the circumstances, and (iv)
their audits and reviews described under clauses (i) and (ii) above disclosed no
exceptions which, in their opinion, were material, relating to the servicing of
such Contracts in accordance with this Agreement and the making of distributions
on the Notes in accordance with this Agreement, or, if any such exceptions were
disclosed thereby, setting forth those exceptions which, in their opinion, were
material.

        SECTION 3.12 ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
CONTRACTS.

        If the Servicer is acting as Custodian, the Servicer shall provide to
the Noteholders, the Issuer, the Owner Trustee, the Trust Agent, the Indenture
Trustee and the Insurer reasonable access to the Contract Files and Contract
Documents. Access shall be afforded without charge, but only upon reasonable
request and during normal business hours at designated offices of the Servicer.
Nothing in this Section shall affect the obligation of the Servicer to observe
any applicable law prohibiting disclosure of information regarding the Obligors,
and the failure of the Servicer to provide access to information as a result of
such obligation shall not constitute a breach of this Section.

        SECTION 3.13 FIDELITY BOND.

        The Servicer shall maintain a fidelity bond in such form and amount as
is customary for banks acting as custodian of funds and documents in respect of
mortgage loans or consumer contracts on behalf of institutional investors.

        SECTION 3.14 INDEMNIFICATION; THIRD PARTY CLAIMS.

        Subject to Section 7.02, the Servicer agrees to indemnify and hold the
Issuer, the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer,
the Custodian and the Noteholders harmless against any and all claims, losses,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any reasonable other costs, fees and expenses that the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian or Noteholders may sustain because of the failure of the Servicer to
perform its duties and service the Contracts in compliance with the terms of
this Agreement. The Servicer shall (i) immediately notify the

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<PAGE>

Issuer and the Indenture Trustee in writing if a claim is made by a third party
with respect to the Contracts, (ii) assume, with the consent of the Issuer, the
Indenture Trustee and the Insurer, the defense of any such claim, (iii) pay all
expenses in connection therewith, including counsel fees, and (iv) promptly pay,
discharge and satisfy any judgment or decree which may be entered with respect
to such claim against the Servicer, the Issuer, the Owner Trustee, the Trust
Agent, the Indenture Trustee, the Insurer, the Custodian or the Noteholders.

        SECTION 3.15 REPORTS TO NOTEHOLDERS AND THE RATING AGENCIES.

                (a) The Indenture Trustee at its own expense shall provide to
        each Noteholder a copy of each Distribution Date Statement described in
        Section 3.09(a) concurrently with the delivery of the statement
        described in Section 4.05 below.

                (b) The Indenture Trustee shall provide to any Noteholder who so
        requests in writing (addressed to the Corporate Trust Office of the
        Indenture Trustee) a copy of the annual audit statement described in
        Section 3.10, or the annual audit report described in Section 3.11. The
        Indenture Trustee may require the Noteholder to pay a reasonable sum to
        cover the cost of the Indenture Trustee's complying with such request.

                (c) The Indenture Trustee shall forward to the Rating Agencies
        and the Insurer the statement to Noteholders described in Section 4.05
        and any other reports it may receive pursuant to this Agreement to (i)
        Standard & Poor's Ratings Services, Asset-Backed Surveillance Group, 55
        Water Street, New York, New York 10041, (ii) Moody's Investors Service,
        Inc., ABS Monitoring Dept., 99 Church Street, 4th Floor, New York, New
        York 10007, and (iii) the address of the Insurer at the address set
        forth in the Insurance Agreement.

        SECTION 3.16 ACCESS TO LIST OF NOTEHOLDERS' NAMES AND ADDRESSES.

        The Indenture Trustee shall furnish or cause to be furnished to the
Servicer, the Insurer and the Seller, within 15 days after receipt by the
Indenture Trustee of a written request therefor from the Servicer, the Insurer
or the Seller, a list, in such form as the Servicer, the Insurer or the Seller
may reasonably require, of the names and addresses of the Noteholders as of the
most recent Record Date. If three or more Noteholders, or one or more
Noteholders evidencing not less than 25% of the aggregate outstanding principal
balance of the Notes (hereinafter referred to as "Applicants"), apply in writing
to the Indenture Trustee, and such application states that the Applicants desire
to communicate with other Noteholders with respect to their rights hereunder or
under the Notes and such application is accompanied by a copy of the
communication that such Applicants propose to transmit, then the Indenture
Trustee shall, within five Business Days after the receipt of such application,
afford such Applicants access, during normal business hours, to the current list
of Noteholders. Each Noteholder, by receiving and holding a Note, agrees with
the Servicer, the Seller and the Indenture Trustee that none of the Servicer,
the Seller or the Indenture Trustee shall be held accountable by reason of the
disclosure of any such information as to its name and address hereunder,
regardless of the source from which such information was derived.

                                      -55-
<PAGE>

                                   ARTICLE IV

                         DISTRIBUTIONS; SPREAD ACCOUNT;
                            STATEMENTS TO NOTEHOLDERS

        SECTION 4.01 ESTABLISHMENT OF TRUST ACCOUNTS.

                (a) Prior to the Closing Date, the Servicer shall open, at a
        depository institution (which may be the same depository institution
        which is acting in the capacity as Indenture Trustee), the following
        accounts:

                (i)             an account denominated "Collection Account - OT
                                2002-C, JPMorgan Chase Bank, Indenture Trustee"
                                (the "COLLECTION Account");

                (ii)            an account denominated "Payahead Account - OT
                                2002-C, JPMorgan Chase Bank, as agent" (the
                                "PAYAHEAD ACCOUNT");

                (iii)           an account denominated "Spread Account - OT
                                2002-C, JPMorgan Chase Bank, Indenture Trustee"
                                (the "SPREAD ACCOUNT");

                (iv)            an account denominated "Note Distribution
                                Account - OT 2002-C, JPMorgan Chase Bank,
                                Indenture Trustee" (the "NOTE DISTRIBUTION
                                ACCOUNT");

                (v)             an account denominated "Prefunding Account - OT
                                2002-C, JPMorgan Chase Bank, Indenture Trustee"
                                (the "PREFUNDING Account"); and

                (vi)            an account denominated "Capitalized Interest
                                Account - OT 2002-C, JPMorgan Chase Bank,
                                Indenture Trustee" (the "CAPITALIZED INTEREST
                                ACCOUNT").

        In addition, the Indenture Trustee shall establish a trust account to be
maintained in the Corporate Trust Office of the Indenture Trustee denominated
"Payment Account - OT 2002-C, JPMorgan Chase Bank, Indenture Trustee" (the
"PAYMENT ACCOUNT" and, together with the accounts described in clauses (i)
through (vi) above, the "TRUST ACCOUNTS"). The Trust Accounts shall be Eligible
Accounts (subject to the requirement that the Payment Account must be maintained
as provided in the immediately preceding sentence) and relate solely to the
Notes and to the Contracts and, if applicable, the related Eligible Investments.
The location and account numbers of the Trust Accounts as of the Closing Date
are set forth on Schedule II. The Servicer shall give the Issuer, the Owner
Trustee, the Trust Agent, the Indenture Trustee and the Insurer at least five
Business Days' written notice of any change in the location of any Trust Account
and any related account identification information. All amounts, financial
assets and investment property held in, deposited in or credited to, from time
to time, the Trust Accounts (other than the Payahead Account and investment
income credited to the Collection Account and the Capitalized Interest Account)
shall be part of the Trust Property and all amounts, financial assets and
investment property held in, deposited in or credited to, from time to time, the

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Collection Account, the Spread Account, the Prefunding Account and the
Capitalized Interest Account shall be invested by the Indenture Trustee in
Eligible Investments pursuant to Section 4.01(c).

                (b) If as of the last day of a Collection Period a payment in an
        amount less than the scheduled payment of Monthly P&I has been made for
        a Precomputed Contract with respect to which amounts have been deposited
        in or credited to the Payahead Account in a preceding Collection Period
        in accordance with Sections 3.01 and 4.02(a), the Servicer shall
        withdraw from the Payahead Account and deposit into the Collection
        Account by the fifth Business Day preceding the Distribution Date
        immediately succeeding such Collection Period the amount equal to the
        difference between such scheduled payment of Monthly P&I and such actual
        payment, to the extent available from amounts deposited in or credited
        to the Payahead Account with respect to such Contract. Amounts on
        deposit in the Payahead Account shall be invested by the depository
        institution maintaining the Payahead Account upon the written direction
        of the Servicer in Eligible Investments which mature not later than the
        fifth Business Day prior to the Distribution Date to which such amounts
        relate, and any earnings on such Eligible Investments shall be payable
        to the Servicer monthly. The Payahead Account and all amounts on deposit
        therein or credited thereto shall not be considered part of the Trust
        Property.

                (c) All funds in the Collection Account, the Spread Account, the
        Prefunding Account and the Capitalized Interest Account shall be
        invested by the Indenture Trustee (if the Indenture Trustee maintains
        the applicable account), or on behalf of the Indenture Trustee by the
        depository institution maintaining such account, in Eligible Investments
        only upon the written direction from the Servicer or the Insurer, as
        described below. Subject to the limitations set forth herein, the
        Servicer may direct the depository institution maintaining the
        Collection Account, the Spread Account, the Prefunding Account and the
        Capitalized Interest Account in writing (with a copy of such direction
        to the Indenture Trustee, if the Indenture Trustee is not the applicable
        depository institution) to invest funds in the Collection Account, the
        Spread Account, the Prefunding Account and the Capitalized Interest
        Account in Eligible Investments; provided that (i) in the absence of
        such directions from the Servicer, the Insurer may so direct, and (ii)
        at any time during the continuance of a Servicer Default, only the
        Insurer, or for so long as an Insurer Default shall have occurred and be
        continuing, only the Issuer, may give such investment directions. All
        such investments shall be in the name of the Indenture Trustee for the
        benefit of the Noteholders. All income or other gain from investment of
        monies deposited in or credited to the Collection Account shall be paid
        by the depository institution maintaining the Collection Account to the
        Servicer monthly. All income or other gain from investment of monies
        deposited in or credited to the Spread Account, the Prefunding Account
        and the Capitalized Interest Account shall be deposited in or credited
        to such account immediately upon receipt, and any loss resulting from
        such investment shall be charged to such account. The maximum
        permissible maturities of any investments of funds in the Collection
        Account, the Spread Account and the Capitalized Interest Account on any
        date shall not be later than the Servicer Report Date immediately
        preceding the Distribution Date next succeeding the date of such
        investment; provided, however, that if the Indenture Trustee is
        maintaining the applicable account, such funds may be invested by the
        Indenture Trustee in Eligible Investments of the entity that is

                                      -57-
<PAGE>

        serving as Indenture Trustee (or an entity which meets the criteria in
        clauses (i)(b) or (i)(c) of the definition of Eligible Account) that
        mature on the Business Day prior to such Distribution Date. The maximum
        permissible maturity of any investments of funds in the Prefunding
        Account on any date shall not be later than the next Business Day. No
        investment in Eligible Investments may be sold prior to its maturity.
        The funds on deposit in the Payment Account and the Note Distribution
        Account shall remain uninvested.

                (d) In the absence of written direction as provided above, all
        funds held in the Spread Account, the Collection Account, the Prefunding
        Account and the Capitalized Interest Account shall remain uninvested. In
        addition, if the applicable depository institution receives what it
        perceives to be conflicting directions regarding the investment of funds
        in the Collection Account, the Spread Account, the Prefunding Account or
        the Capitalized Interest Account, the directions of the Insurer shall
        control unless an Insurer Default shall have occurred and be continuing,
        in which case the directions of the Servicer shall control unless a
        Servicer Default shall have occurred and be continuing, in which case
        the directions of the Issuer shall control. In addition, the Indenture
        Trustee shall not in any way be held liable by reason of any
        insufficiency in any of the foregoing Trust Accounts held by or on
        behalf of the Indenture Trustee resulting from any investment loss on
        any Eligible Investments.

        SECTION 4.02 COLLECTIONS; TRANSFERS TO PAYAHEAD ACCOUNT; REALIZATION
UPON POLICY; NET DEPOSITS; TRANSFERS TO PAYMENT ACCOUNT.

                (a) Subject to the last sentence of this Section 4.02(a), the
        Servicer shall remit or credit all payments on a daily basis, within two
        Business Days of receipt, by or on behalf of Obligors on the Contracts,
        and all Net Liquidation Proceeds and Net Insurance Proceeds and other
        monies as required to the Collection Account. Prior to the Servicer
        Report Date, amounts with respect to Precomputed Contracts which are
        otherwise required to be deposited in or credited to the Collection
        Account pursuant to the immediately preceding sentence shall instead be
        deposited in or credited to the Payahead Account to the extent that such
        amounts are installments of Monthly P&I which are due in a Collection
        Period relating to a Distribution Date subsequent to the Distribution
        Date immediately succeeding the date of receipt. The Servicer or the
        Seller, as the case may be, each shall remit or credit to the Collection
        Account each Purchase Amount to be remitted by it with respect to
        Purchased Contracts on the Business Day preceding the Servicer Report
        Date next succeeding (i) the end of the Collection Period in which the
        applicable Contract is repurchased by the Seller pursuant to Section
        2.03, in the case of the Seller or (ii) the last day of the related cure
        period specified in Section 3.07, in the case of the Servicer.

                (b) On the Servicer Report Date, the Servicer shall determine
        the Policy Claim Amount, if any, which exists with respect to the
        related Distribution Date and submit a Distribution Date Statement
        pursuant to Section 3.09.

                (c) The Indenture Trustee shall, no later than 12:00 p.m., New
        York City time, on the third Business Day prior to each Distribution
        Date (based solely on the information

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        contained in the Distribution Date Statement, delivered on the
        applicable Servicer Report Date), make a claim under the Policy for the
        Policy Claim Amount, if any, for such Distribution Date by delivering to
        the Fiscal Agent, with a copy to the Insurer, the Trust Agent and the
        Servicer, by hand delivery, telex or facsimile transmission, a written
        notice (a "Deficiency Notice") specifying the Policy Claim Amount, if
        any, for such Distribution Date, separately identifying the amount of
        the Policy Claim Amount payable in respect of each Class of Notes. Each
        Deficiency Notice shall direct the Insurer to remit such Policy Claim
        Amount to the Indenture Trustee for deposit in the Payment Account. In
        making any such claim, the Indenture Trustee shall comply with all the
        terms and conditions of the Policy. Upon receipt of the Policy Claim
        Amount, the Indenture Trustee shall apply the portion thereof, if any,
        representing the Deficiency Amount with respect to a Distribution Date
        as provided in Section 4.03. Any amounts received by the Indenture
        Trustee under the Policy that represent Preference Amounts shall be
        paid, in accordance with the Policy, to the applicable Noteholder(s).

                (d) So long as Onyx is the Servicer, the Servicer may make
        deposits in or credits to the Collection Account net of amounts to be
        paid to the Servicer under this Agreement. Notwithstanding the
        foregoing, the Servicer shall maintain the records and accounts for such
        deposits and credits on a gross basis.

                (e) On the Business Day immediately preceding each Distribution
        Date, based solely on the Distribution Date Statement, the Servicer
        shall cause funds equal to the amount of Net Collections available with
        respect to such Distribution Date on deposit in the Collection Account
        to be withdrawn from the Collection Account and deposited into the
        Payment Account to be distributed pursuant to Section 4.03.

        SECTION 4.03 DISTRIBUTIONS.

        On each Distribution Date, based solely on the Distribution Date
Statement, the Indenture Trustee will apply the Net Collections available from
the Payment Account, along with any amounts deposited into the Payment Account
from the Prefunding Account and the Capitalized Interest Account, with respect
to such Distribution Date to make the following deposits and distributions in
the following amounts and order of priority:

                (i)             to the Servicer, the Servicing Fee, including
                                any accrued and unpaid Servicing Fees with
                                respect to one or more prior Collection Periods;

                (ii)            to the Indenture Trustee, the Owner Trustee and
                                the Trust Agent, any accrued and unpaid fees of
                                the Indenture Trustee, the Owner Trustee and the
                                Trust Agent, in each case to the extent such
                                fees have not been previously paid by the
                                Servicer or the Administrator;

                (iii)           to the Note Distribution Account, the Note
                                Interest Distributable Amount to be paid to the
                                Holders of the Class A Notes at their respective
                                Interest Rates;

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                (iv)            to the Note Distribution Account, if such
                                Distribution Date is a Note Final Scheduled
                                Distribution Date for any Class of Notes, the
                                Note Principal Distributable Amount to the
                                extent of the remaining principal amount of such
                                Class of Notes, to be paid to the Holders of
                                such Class of Notes;

                (v)             if such Distribution Date is the Mandatory
                                Partial Redemption Date, to the Note
                                Distribution Account, the Mandatory Partial
                                Redemption Amount, to be distributed to the
                                Holders of the Class A-1 Notes if such amount is
                                less than or equal to $50,000, and to be
                                distributed to the Holders of all Notes, pro
                                rata based on the then outstanding principal
                                balance of the Notes, if such amount exceeds
                                $50,000;

                (vi)            to the Note Distribution Account, solely from
                                Net Collections (plus amounts transferred from
                                the Prefunding Account representing earnings
                                from investments therein and amounts transferred
                                from the Capitalized Interest Account, if any)
                                remaining after giving effect to the
                                distributions described in clauses (i) through
                                (v) above, the remaining Note Principal
                                Distributable Amount (after giving effect to the
                                payment, if any, described in clauses (iv) and
                                (v) above), to be paid first to the Holders of
                                the Class A-1 Notes until the principal amount
                                of the Class A-1 Notes has been reduced to zero,
                                second, to the Holders of the Class A-2 Notes
                                until the principal amount of the Class A-2
                                Notes has been reduced to zero, third, to the
                                Holders of the Class A-3 Notes until the
                                principal amount of the Class A-3 Notes has been
                                reduced to zero, and fourth, to the Holders of
                                the Class A-4 Notes until the principal amount
                                of the Class A-4 Notes has been reduced to zero;

                (vii)           to the Insurer, after giving effect to the
                                distributions described in clauses (i) through
                                (vi) above, (A) any amounts, including the
                                Premium, owing to the Insurer under the
                                Insurance Agreement and (B) any unreimbursed
                                Insurer Defense Costs;

                (viii)          to the Spread Account, after giving effect to
                                the distributions described in clauses (i)
                                through (vii) above, the amount, if any,
                                required to increase the amount therein to the
                                Spread Account Maximum for such Distribution
                                Date; and

                (ix)            any amounts remaining after distribution of the
                                Accelerated Principal Distributable Amount as
                                part of the Note Principal Distributable Amount,
                                if applicable, shall be deposited into the
                                Spread Account.

Any amounts deposited in the Payment Account pursuant to 4.04(b) with respect to
a Distribution Date and any amounts received by the Indenture Trustee as a
result of a claim under

                                      -60-
<PAGE>

the Policy that represent the Deficiency Amount with respect to such
Distribution Date shall be applied by the Indenture Trustee solely to make the
deposits and distributions referred to in clauses (i) through (iv) above, in
that order of priority, but only to the extent that the Net Collections (plus
amounts transferred to the Payment Account from the Prefunding Account,
representing earnings from investments therein, and amounts transferred to the
Payment Account from the Capitalized Interest Account, if any) with respect to
such Distribution Date, after application as provided above, were insufficient
to make such deposit or distribution. In addition, if the Insurer pays any
amounts to the Indenture Trustee with respect to a Distribution Date in
connection with the Insurer's election to pay, as provided in the Policy, all or
a portion of any shortfalls in the amount of Net Collections (plus amounts
transferred to the Payment Account from the Prefunding Account, representing
earnings from investments therein, and amounts transferred to the Payment
Account from the Capitalized Interest Account, if any) with respect to such
Distribution Date available to distribute the amounts referred to in clause (vi)
above, the Indenture Trustee shall distribute the amounts so received from the
Insurer as provided in such clause.

        SECTION 4.04 SPREAD ACCOUNT.

                (a) The Spread Account will be held for the benefit of the
        Noteholders and the Insurer. On the Closing Date, the Seller shall
        deposit into the Spread Account an amount equal to the Initial Cash
        Deposit from the proceeds of the sale of the Notes.

                (b) On each Distribution Date, based solely on the Distribution
        Date Statement, the Indenture Trustee shall withdraw funds from the
        Spread Account, to the extent funds are on deposit therein, equal to the
        amount by which the sum of the amounts set forth in Section 4.03,
        clauses (i) though (iv) with respect to such Distribution Date exceeds
        the amount of Net Collections (plus amounts transferred to the Payment
        Account from the Prefunding Account, representing earnings from
        investments therein, and amounts transferred to the Payment Account from
        the Capitalized Interest Account, if any) available with respect to such
        Distribution Date. The Indenture Trustee shall deposit any such funds
        withdrawn from the Spread Account into the Payment Account to be
        distributed pursuant to Section 4.03. Funds shall also be withdrawn from
        the Spread Account by the Indenture Trustee, as directed by the Insurer
        to reimburse the Insurer for draws with respect to any Preference
        Amount. If the amount of cash on deposit in the Spread Account on any
        Distribution Date (after giving effect to all deposits thereto or
        withdrawals therefrom on such Distribution Date other than withdrawals
        relating to distributions to be made pursuant to this sentence) exceeds
        the maximum amount of the cash component of the Spread Account, as
        specified in the definition of "Spread Account Maximum" set forth in the
        Insurance Agreement, the Indenture Trustee shall, based solely on the
        Distribution Date Statement, distribute any excess first, to the
        Insurer, to the extent of any amounts owing to the Insurer pursuant to
        the Insurance Agreement and any unreimbursed Insurer Defense Costs, and
        second, to the Residual Distribution Account for distribution to holders
        of the Residual Interests pursuant to the Trust Agreement. Upon any such
        distributions to the Insurer or the holders of the Residual Interests,
        the Noteholders will have no further rights in, or claims to, such
        amounts.

                                      -61-
<PAGE>

                (c) Amounts held in the Spread Account shall be invested in the
        manner specified in Section 4.01(c), and such investments shall be made
        in accordance with written instructions from the Servicer; provided
        that, if the Indenture Trustee does not receive any such written
        instructions prior to any date on which an investment decision must be
        made, the funds held in the Spread Account will remain uninvested. All
        such investments shall be made in the name of the Indenture Trustee or
        its nominee and such investments shall not be sold or disposed of prior
        to their maturity.

                (d) Ninety-one (91) days following the termination of the Trust
        pursuant to Section 9.01 of the Trust Agreement, any amounts on deposit
        in the Spread Account, after payments of amounts due to the Noteholders
        or the Insurer pursuant to the Insurance Agreement and any unreimbursed
        Insurer Defense Costs, shall be paid to the holders of the Residual
        Interests; provided, however, that if an insolvency event of the type
        described in Section 7.01(d) or (e) with respect to any of the Seller,
        the Servicer, the Indenture Trustee or the Noteholders (collectively,
        the "POTENTIAL PREFERENCE PARTIES") shall have occurred during the
        period ending ninety-one (91) days after payment in full to the
        Noteholders of all amounts payable with respect to the Notes and the
        payment in full of the Repayment Amount then the funds on deposit in the
        Spread Account shall be retained until the date all applicable statute
        of limitation periods with respect to all applicable preference actions
        and periods have expired and during which time no preference action or
        similar proceeding at law or in equity is commenced, at which time, the
        Insurer shall direct the Indenture Trustee in writing to release all
        amounts in the Spread Account to the holders of the Residual Interests,
        pro rata in proportion to percentage portion of the Residual Interest
        (the "PERCENTAGE INTEREST") of each such holder of the Residual
        Interests. In the event that any preference action referred to above is
        commenced during any applicable statute of limitations period, funds
        deposited in the Spread Account shall be retained until the date on
        which there is a final determination by a court of competent
        jurisdiction as to whether any payment or payments made pursuant to this
        Agreement, the Indenture, the Indemnification Agreement or the Insurance
        Agreement is recoverable from any of the Insurer or the Noteholders. If
        it is so determined that a payment is so recoverable, funds deposited in
        the Spread Account shall be applied by the Indenture Trustee at the
        written direction of the Insurer first to pay any and all such claims
        with respect to such preference actions as the Noteholders and the
        Insurer may be required to pay and then to the holders of the Residual
        Interests, pro rata in proportion to their Percentage Interests. If it
        is determined that any such payment is not recoverable, the Insurer
        shall direct the Indenture Trustee in writing to release all amounts on
        deposit in the Spread Account to the holders of the Residual Interests,
        pro rata in proportion to their Percentage Interests, upon receipt by
        the Insurer of both a final order determining that such payments are not
        recoverable and an opinion of nationally recognized bankruptcy counsel
        to the effect that such appeal is final and not subject to appeal. For
        purposes of compliance with this Section 4.04(d), the Indenture Trustee
        shall be entitled to rely on written instructions from the Insurer.

                (e) In the event any of the holders of the Residual Interests
        seek to have the amounts remaining on deposit in the Spread Account
        released to holders of the Residual Interests prior to the expiration of
        the ninety-one (91) day period specified in Section 4.04(d) above, then,
        if (i) amounts payable with respect to the Notes have been fully paid

                                      -62-
<PAGE>

        to the Noteholders, (ii) the Repayment Amount and all other amounts
        owing to the Insurer pursuant to the Insurance Agreement and any
        unreimbursed Insurer Defense Costs have been paid in full, (iii) no case
        or proceeding described in Sections 7.01(d) or (e) has occurred with
        respect to the Potential Preference Parties, and (iv) either (A) the
        long term unsecured debt of the Seller and the Servicer is rated "BBB-"
        or better by Standard & Poor's and "Baa3" or better by Moody's, (B) the
        Insurer shall have received a favorable opinion or opinions,
        satisfactory in form and substance to the Insurer, from counsel to Onyx,
        the Seller and the Servicer, to the effect that in the event a case or
        proceeding described in Sections 7.01(d) or (e) were to occur with
        respect to the Potential Preference Parties, no payment pursuant to this
        Agreement or the Insurance Agreement would be recoverable from either
        the Insurer or the Noteholders, and such other matters as the Insurer
        may reasonably request, or (C) the Insurer, in its sole discretion,
        elects to have the remaining amounts on deposit in the Spread Account
        paid to the holders of the Residual Interests, then, in any such event,
        all remaining amounts on deposit in the Spread Account shall be paid to
        the holders of the Residual Interests, pro rata in proportion to their
        Percentage Interests.

        SECTION 4.05 STATEMENTS TO NOTEHOLDERS.

        (a) On each Distribution Date, the Indenture Trustee shall include with
each distribution to each Noteholder of record as of the related Record Date, a
statement, prepared by the Servicer, based on the information in the
Distribution Date Statement furnished pursuant to Section 3.09, setting forth
for such Distribution Date the following information as of the related Record
Date or such Distribution Date, as the case may be:

                (i)             the amount of such distribution allocable to
                                principal (stated separately for each Class of
                                Notes), separately identifying the aggregate
                                amount included therein of any (i) Full
                                Prepayments of principal on Precomputed
                                Contracts and (ii) Full Prepayments and partial
                                prepayments of principal on Simple Interest
                                Contracts;

                (ii)            the amount of such distribution allocable to
                                interest (stated separately for each Class of
                                Notes);

                (iii)           the Note Distributable Amount for such
                                Distribution Date;

                (iv)            the Premium payable to the Insurer;

                (v)             the amount to be on deposit in the Spread
                                Account on such Distribution Date, before and
                                after giving effect to deposits thereto and
                                withdrawals therefrom to be made in respect of
                                such Distribution Date;

                (vi)            the amount of the withdrawal, if any, required
                                to be made from the Spread Account by the
                                Indenture Trustee, specifying as to whether such
                                amount is to be (A) deposited into the Payment
                                Account, (B) paid to the Insurer or (C)
                                deposited into the Note Distribution

                                      -63-
<PAGE>

                                Account for distribution to the holders of the
                                Residual Interests pursuant to Section 4.04;

                (vii)           the aggregate Servicing Fee with respect to the
                                Contracts for the related Collection Period;

                (viii)          the amount of fees paid to the Owner Trustee,
                                the Trust Agent and the Indenture Trustee, with
                                respect to the related Collection Period;

                (ix)            the amount of any Note Interest Carryover
                                Shortfall and Note Principal Carryover Shortfall
                                on such Distribution Date and the change in such
                                amounts from those with respect to the
                                immediately preceding Distribution Date;

                (x)             the number of, and aggregate amount of, monthly
                                principal and interest payments due on the
                                Contracts which are delinquent as of the end of
                                the related Collection Period presented on a
                                30-day, 60-day and 90-day basis;

                (xi)            the Net Collections and the Policy Claim Amount,
                                if any, for such Distribution Date;

                (xii)           the aggregate amount of Liquidation Proceeds
                                received for Defaulted Contracts;

                (xiii)          the net credit losses and Cram Down Losses for
                                the Collection Period;

                (xiv)           the number and net outstanding balance of
                                Contracts for which the Financed Vehicle has
                                been repossessed;

                (xv)            the Pool Balance and the Note Pool Factor for
                                each Class of Notes as of such Distribution Date
                                after giving effect to the distribution made on
                                such Distribution Date;

                (xvi)           on each Distribution Date occurring during and
                                immediately following the end of the Funding
                                Period, the amount on deposit in each of the
                                Prefunding Account and the Capitalized Interest
                                Account on such Distribution Date, before and
                                after giving effect to withdrawals therefrom to
                                be made in respect of such Distribution Date;

                (xvii)          on each Distribution Date occurring during and
                                immediately following the end of the Funding
                                Period, the amounts of investment earnings and
                                other amounts transferred from the Prefunding
                                Account and the amounts transferred from the
                                Capitalized Interest Account to the Payment
                                Account; and

                                      -64-
<PAGE>

                (xviii)         on the Distribution Date immediately following
                                the end of the Funding Period, the Mandatory
                                Partial Redemption Amount.

Each amount set forth pursuant to subclauses (i) or (ii) above shall be
expressed as a dollar amount per $1,000.00 of original principal amount of a
Note.

        (b) Within a reasonable period of time after the end of each calendar
year, but not later than the latest date permitted by law, the Servicer shall
prepare and furnish to the Issuer, the Indenture Trustee and each Paying Agent,
and the Paying Agent for the Notes and the Paying Agent for the Residual
Interest Instruments shall furnish to each Person who on any Record Date during
such calendar year shall have been a Holder of a Note or a Residual Interest
Instrument, respectively, a statement or statements containing the sum of the
amounts set forth in clauses (i) and (ii) above for such calendar year and such
other information as is reasonably necessary for the preparation of such
Person's federal income tax return in respect of the Notes or Residual Interest
Instruments or, in the event such Person shall have been a Holder of a Note or a
Residual Interest Instrument during a portion of such calendar year, for the
applicable portion of such year, for the purposes of such Noteholder's or
Residual Interestholder's preparation of federal income tax returns.

        SECTION 4.06 CAPITALIZED INTEREST ACCOUNT.

        (a) Pursuant to Section 4.01, the Servicer shall establish the
Capitalized Interest Account in the name of the Indenture Trustee for the
benefit of the Noteholders and the Insurer.

        (b) On the Closing Date, the Seller shall deposit the Initial
Capitalized Interest Amount into the Capitalized Interest Account.

        (c) On the Business Day immediately preceding each Distribution Date,
based solely on the Distribution Date Statement, the Indenture Trustee shall
withdraw or cause to be withdrawn funds equal to the Capitalized Interest Amount
with respect to such Distribution Date from amounts on deposit in the
Capitalized Interest Account and deposit or cause to be deposited such funds
into the Payment Account, to be distributed pursuant to Section 4.03.

        (d) On each Distribution Date during and immediately following the
Funding Period, based on the written instructions of the Servicer, the Indenture
Trustee shall release to the Seller from the Capitalized Interest Account an
amount such that the balance remaining in the Capitalized Interest Account after
such release and after any transfer of the Capitalized Interest Amount to the
Payment Account pursuant to Section 4.06(c) will equal the Maximum Capitalized
Interest Amount. On the Distribution Date following the Mandatory Partial
Redemption Date, the Indenture Trustee shall release to the Seller any amounts
remaining on deposit in the Capitalized Interest Account after giving effect to
the required distribution to Noteholders on such date.

        SECTION 4.07 PREFUNDING ACCOUNT.

        (a) Pursuant to Section 4.01, the Servicer shall establish the
Prefunding Account in the name of the Indenture Trustee for the benefit of the
Noteholders and the Insurer.

                                      -65-
<PAGE>

        (b) On the Closing Date, the Seller shall deposit into the Prefunding
Account an amount equal to the Prefunded Amount from the proceeds of the sale of
the Notes. Provided the Indenture Trustee has received the related Transfer
Certificate on the Business Day immediately preceding the Prefunding Transfer
Date, the Indenture Trustee shall withdraw from the Prefunding Account an amount
equal to the Outstanding Principal Balance of the Prefunded Contracts (as
indicated in the Transfer Certificate and determined as of the related
Prefunding Cut-Off Date) that have been delivered to the Custodian, on behalf of
the Indenture Trustee, and wire such amount by federal funds to the Seller's
account listed in the Transfer Certificate relating to such Prefunding Transfer
Date by 1:00 p.m. California time on such Prefunding Transfer Date.

        (c) If any amount remains on deposit in the Prefunding Account on the
last day of the Funding Period, such amount shall be invested at the written
instruction of the Servicer in a single Eligible Investment which matures on the
Business Day preceding the Mandatory Partial Redemption Date; provided, that in
the event no such Eligible Investment is available, such amount shall not be
invested but shall be held in the Prefunding Account uninvested.

        (d) On the Business Day preceding the Mandatory Partial Redemption Date,
the Servicer shall instruct the Indenture Trustee in writing to withdraw the
Mandatory Partial Redemption Amount from the Prefunding Account and deposit such
amount in the Payment Account on such Business Day.

        (e) On the Business Day immediately preceding each Distribution Date
following a Collection Period during which amounts are on deposit in the
Prefunding Account, the Indenture Trustee shall withdraw the earnings on all
investments in the Prefunding Account and deposit such amount in the Payment
Account on such Business Day.

        SECTION 4.08 REQUIREMENTS RELATING TO PREFUNDING ACCOUNT.

        The transfer of Prefunded Contracts to the Trust shall be subject to
each of, and Prefunded Contracts shall not be transferred to the Trust to the
extent such transfer would result in the violation of any of, the following
restrictions and limitations, as well as the conditions set forth in Section
2.01(c):

        (a) The period during which Prefunded Contracts may be transferred to
the Trust (the "FUNDING PERIOD") shall begin on the Closing Date and end no
later than the earliest to occur of: (i) the date on which the balance in the
Prefunding Account is less than $2,500.00; (ii) the date on which a Servicer
Default or an Indenture Event of Default occurs; or (iii) the close of business
on October 17, 2002.

        (b) [Reserved].

        (c) Each of the Prefunded Contracts shall meet the same terms and
conditions for eligibility as those of the Funded Contracts; provided, that the
terms and conditions for determining the eligibility of a Prefunded Contract may
be changed if such changes receive prior approval by the Insurer, with notice
given to each Rating Agency.

                                      -66-
<PAGE>

        (d) The transfer of Prefunded Contracts shall not result in any Note
receiving a lower credit rating from a Rating Agency upon termination of the
Funding Period than the rating obtained as of the time of the initial issuance
of the Notes by the Trust without regard to the Policy.

                                    ARTICLE V

                                   THE SELLER

        SECTION 5.01 LIABILITY OF SELLER.

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

        SECTION 5.02 MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF, SELLER; CERTAIN LIMITATIONS.

        The Seller shall not consolidate with or merge into any other
corporation or convey, transfer or lease substantially all of its assets as an
entirety to any Person unless the corporation formed by such consolidation or
into which the Seller has merged or the Person which acquires by conveyance,
transfer or lease substantially all the assets of the Seller as an entirety, can
lawfully perform the obligations of the Seller hereunder and executes and
delivers to the Issuer, the Trust Agent, the Indenture Trustee and the Insurer
an agreement in form and substance reasonably satisfactory to the Issuer, the
Trust Agent, the Indenture Trustee and the Insurer, which contains an assumption
by such successor entity of the due and punctual performance and observance of
each covenant and condition to be performed or observed by the Seller under this
Agreement.

        SECTION 5.03 LIMITATION ON LIABILITY OF SELLER AND OTHERS.

        The Seller and any director or officer or employee or agent of the
Seller may rely in good faith on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
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 5.04 SELLER NOT TO RESIGN.

        Subject to the provisions of Section 5.02, the Seller shall not resign
from the obligations and duties hereby imposed on it as Seller under this
Agreement.

        SECTION 5.05 SELLER MAY OWN NOTES AND RESIDUAL INTEREST INSTRUMENTS.

        The Seller and any Affiliate thereof may in its individual or any other
capacity become the owner or pledgee of Notes or Residual Interest Instruments
with the same rights as it would have if it were not the Seller or an Affiliate
thereof, except as expressly provided herein or in any Basic Document. Notes or
Residual Interest Instruments so owned by or pledged to the Seller or

                                      -67-
<PAGE>

such Affiliate shall have an equal and proportionate benefit under the
provisions of this Agreement, without preference, priority or distinction as
among all Classes of the Notes or Residual Interest Instruments, as the case may
be.

                                   ARTICLE VI

                                  THE SERVICER

        SECTION 6.01 LIABILITY OF SERVICER; INDEMNITIES.

        Subject to Section 7.02, the Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement. Such obligations shall include the following:

        (a) The Servicer shall defend, indemnify and hold harmless the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian, their respective officers, directors, agents and employees, and the
Noteholders from and against any and all costs, expenses, losses, damages,
claims and liabilities, arising out of or resulting from the use, ownership or
operation by the Servicer or any Affiliate thereof of a Financed Vehicle.

        (b) The Servicer shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer) and their respective officers,
directors, agents and employees from and against any taxes that may at any time
be asserted against the Issuer, the Owner Trustee, the Trust Agent, the
Indenture Trustee, the Insurer or the Custodian with respect to the transactions
contemplated herein and in the other Basic Documents, including, without
limitation, any sales, gross receipts, general corporation, tangible personal
property, privilege or license taxes (but, not including (i) in the case of the
Issuer, any taxes asserted with respect to, and as of the date of, the sale of
the Contracts to the Issuer or the issuance and original sale of the Notes, or
(ii) any taxes asserted with respect to ownership of the Contracts, or (iii) any
federal or other income taxes arising out of distributions on the Notes) and
costs and expenses in defending against the same.

        (c) The Servicer shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer), their respective officers,
directors, agents and employees and the Noteholders from and against any and all
costs, expenses, losses, claims, damages and liabilities to the extent that such
cost, expense, loss, claim, damage or liability arose out of, or was imposed
upon any such Person through, the negligence (other than errors in judgment),
willful misfeasance or bad faith of the Servicer or the Seller in the
performance of their respective duties under this Agreement.

        (d) The Servicer shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer) and their respective officers,
directors, agents and employees from and against any and all costs, expenses,
losses, claims, damages and liabilities arising out of or incurred in connection
with the acceptance or performance of the trusts and duties herein and, in the
case of the Owner Trustee and the Trust Agent, in the Trust Agreement and, in
the case of the Indenture

                                      -68-
<PAGE>

Trustee, in the Indenture, except to the extent that such cost, expense, loss,
claim, damage or liability (i) shall be due to the willful misfeasance, bad
faith or negligence of the Owner Trustee, the Trust Agent, the Indenture
Trustee, the Insurer or the Custodian, as the case may be; (ii) relates to any
tax other than the taxes with respect to which either the Servicer shall be
required to indemnify the Issuer, the Owner Trustee, the Trust Agent, the
Indenture Trustee, the Insurer or the Custodian; or (iii) shall arise from the
Trust Agent's, the Owner Trustee's or the Indenture Trustee's breach of any of
their respective representations or warranties set forth herein, in the Trust
Agreement or in the Indenture.

        (e) In addition to the indemnification obligations set forth above, and
without duplication, the Servicer shall indemnify the Owner Trustee, the Trust
Agent, each co-trustee and their respective officers, directors, employees,
successors, assigns, agents and servants 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 in any way relating
to or arising out of the Trust Agreement, the other Basic Documents, the Trust
Estate (as defined in the Trust Agreement), the administration of the Trust
Estate or the action or inaction of the Owner Trustee, Trust Agent or any
co-trustee under the Trust Agreement, except to the extent that such
liabilities, obligations, losses, damages, taxes, claims, actions, suits, costs,
expenses and disbursements (i) shall be due to the willful misconduct or
negligence of the Owner Trustee, the Trust Agent, a co-trustee or such other
party seeking indemnification, as the case may be, or (ii) shall arise from the
inaccuracy of any representation or warranty contained in Section 7.03 of the
Trust Agreement expressly made by the Owner Trustee or the Trust Agent, as the
case may be. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section 6.01(e), the choice of legal counsel by
the Owner Trustee or the Trust Agent, as applicable, shall be subject to the
approval of the Servicer, which approval shall not be unreasonably withheld.

        (f) Indemnification under this Section shall include, without
limitation, reasonable fees and expenses of counsel and expenses of litigation.
If the Servicer shall have made any indemnity payments pursuant to this section
and the recipient thereafter collects any of such amounts from others, the
recipient Person shall promptly repay such amounts to the Servicer, without
interest.

        (g) This Section 6.01 shall survive the resignation or removal of the
Owner Trustee, the Trust Agent, the Custodian and the Indenture Trustee and the
termination of this Agreement, the Trust Agreement and the Indenture.

        SECTION 6.02 CORPORATE EXISTENCE; STATUS AS SERVICER; MERGER.

        (a) The Servicer shall keep in full effect its existence, rights and
franchises as a corporation incorporated under the laws of the State of
Delaware, and will obtain and preserve its qualification to do business as a
foreign corporation in each jurisdiction in which such qualification is or shall
be necessary to protect the validity and enforceability of the Contract
Documents and this Agreement.

        (b) The Servicer shall not consolidate with or merge into any other
corporation or convey, transfer or lease all or substantially all of its assets
as an entirety to any Person or engage

                                      -69-
<PAGE>

in any corporate transaction pursuant to which the surviving or successor entity
is not Onyx Acceptance Corporation, unless (i) such entity is at least rated
investment grade by the Rating Agencies, (ii) the Insurer shall have consented
thereto in writing and (iii) such entity executes and delivers to the Issuer,
the Indenture Trustee and the Insurer an agreement in form and substance
reasonably satisfactory to the Issuer, the Indenture Trustee and the Insurer,
which contains an assumption by such successor entity of the due and punctual
performance and observance of each covenant and condition to be performed or
observed by the Servicer under this Agreement.

        SECTION 6.03 PERFORMANCE OF OBLIGATIONS.

        (a) The Servicer shall punctually perform and observe all of its
obligations and agreements contained in this Agreement.

        (b) The Servicer shall not take any action, or permit any action to be
taken by others, which would excuse any person from any of its covenants or
obligations under any of the Contract Documents or under any other instrument
included in the Trust Property, or which would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any of the Contract Documents or any such
instrument, except as expressly provided herein and therein.

        SECTION 6.04 SERVICER NOT TO RESIGN; ASSIGNMENT.

        (a) The Servicer shall not resign from the duties and obligations hereby
imposed on it except upon determination by its Board of Directors that by reason
of change in applicable legal requirements the continued performance by the
Servicer of its duties hereunder would cause it to be in violation of such legal
requirements in a manner which would result in a material adverse effect on the
Servicer or its financial condition, said determination to be evidenced by a
resolution of its Board of Directors to such effect accompanied by an Opinion of
Counsel, satisfactory to the Issuer, the Insurer and the Indenture Trustee, to
such effect. No such resignation shall become effective unless and until (i) the
Indenture Trustee assumes all of the Servicer's obligations under this Agreement
or (ii) a new servicer acceptable to the Issuer, the Indenture Trustee and the
Insurer is willing to service the Contracts and enters into a servicing
agreement with the Issuer, the Indenture Trustee and the Insurer in form and
substance substantially similar to this Agreement and satisfactory to the
Issuer, the Indenture Trustee and the Insurer, and each Rating Agency confirms
that the selection of such new servicer will not result in the qualification,
reduction or withdrawal of its then-current rating of each Class of Notes
assigned by such Rating Agency. No such resignation by the Servicer shall affect
the obligation of the Servicer to repurchase Contracts pursuant to Section 3.07.

        (b) Except as specifically permitted in this Agreement, the Servicer may
not assign this Agreement or any of its rights, powers, duties or obligations
hereunder; provided that (i) the Servicer may assign this Agreement in
connection with a consolidation, merger, conveyance, transfer or lease made in
compliance with Section 6.02(b).

        (c) Except as provided in Sections 6.04(a) and (b), the duties and
obligations of the Servicer under this Agreement shall continue until this
Agreement shall have been terminated

                                      -70-
<PAGE>

as provided in Section 8.01 or the Trust shall have been terminated as provided
by the terms of the Trust Agreement, and shall survive the exercise by the
Issuer, the Indenture Trustee or the Insurer of any right or remedy under this
Agreement, or the enforcement by the Issuer, the Indenture Trustee or any
Noteholder, or the Insurer of any provision of the Notes, the Insurance
Agreement or this Agreement.

        (d) The resignation of the Servicer in accordance with this Section
shall not affect the rights of the Seller hereunder. If the Servicer resigns
pursuant to this Section, its appointment as custodian may be terminated
pursuant to Section 2.08.

        SECTION 6.05 LIMITATION ON LIABILITY OF SERVICER AND OTHERS.

        Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Issuer or the
Noteholders, except as provided under this Agreement, 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
Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence (except errors
in judgment) in the performance of duties or by reason of reckless disregard of
obligations and duties under this Agreement. The Servicer and any director,
officer, employee or agent of the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any person
respecting any matters arising under this Agreement.

        Except as provided in this Agreement, the Servicer shall not be under
any obligation to appear in, prosecute or defend any legal action that shall not
be incidental to its duties to service the Contracts in accordance with this
Agreement, and that in its opinion may involve it in any expense or liability;
provided, however, that the Servicer may undertake any reasonable action that it
may deem necessary or desirable in respect of this Agreement and the other Basic
Documents and the rights and duties of the parties to this Agreement and the
other Basic Documents and the interests of the Noteholders under this Agreement
and the other Basic Documents.

                                   ARTICLE VII

                                     DEFAULT

        SECTION 7.01 EVENTS OF DEFAULT.

        If any one of the following events (each, a "SERVICER DEFAULT") shall
occur and be continuing:

        (a) any failure by the Servicer to deposit or credit to the Collection
Account or the Payahead Account any amount required under this Agreement to be
so deposited or credited that shall continue unremedied for a period of three
Business Days after written notice of such failure is received by the Servicer
from the Issuer, the Indenture Trustee or the Insurer or after discovery of such
failure by an officer of the Servicer;

                                      -71-
<PAGE>

        (b) the Insurer, the Indenture Trustee, the Issuer or the Trust Agent
shall not have received a report in accordance with Section 3.09 by the Servicer
Report Date with respect to which such report is due;

        (c) any failure on the part of the Seller or the Servicer duly to
observe or to perform in any material respect any other covenants or agreements
of the Seller or the Servicer set forth in this Agreement or any other Basic
Document, which failure shall (i) materially and adversely affect the rights of
the Noteholders, the Insurer, the Issuer, the Owner Trustee or the Indenture
Trustee and (ii) continue unremedied for a period of 30 days after the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given (A) to the Seller or the Servicer, as the case may be, by the
Insurer, the Issuer, the Owner Trustee or the Indenture Trustee or (B) to the
Seller or the Servicer, as the case may be, and to the Issuer and the Indenture
Trustee by the Holders of Notes, acting together as a single Class, evidencing
in the aggregate not less than 25% of the outstanding amount of the Notes, or
(2) so long as no Insurer Default has occurred and is continuing, by the
Insurer;

        (d) the entry of a decree or order for relief by a court or regulatory
authority having jurisdiction in respect of the Servicer or the Seller in an
involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future, federal or state, bankruptcy, insolvency
or similar law, or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Servicer or the Seller
or of any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Servicer or the Seller and the continuance of
any such decree or order unstayed and in effect for a period of 60 consecutive
days or the commencement of an involuntary case under the federal bankruptcy
laws, as now or hereinafter in effect, or another present or future federal or
state bankruptcy, insolvency or similar law and such case is not dismissed
within 60 days;

        (e) the commencement by the Servicer or the Seller of a voluntary case
under the federal bankruptcy laws, as now or hereafter in effect, or any other
present or future, federal or state, bankruptcy, insolvency or similar law, or
the consent by the Servicer or the Seller to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of the Servicer or the Seller or of any substantial
part of its property or the making by the Servicer or the Seller of an
assignment for the benefit of creditors or the failure by the Servicer or the
Seller generally to pay its debts as such debts become due or the taking of
corporate action by the Servicer or the Seller in furtherance of any of the
foregoing;

        (f) any change of control of the Servicer in violation of the covenant
set forth in Section 6.02 hereof;

        (g) any representation, warranty or statement of the Servicer or the
Seller made in this Agreement or any certificate, report or other writing
delivered pursuant hereto shall prove to be incorrect in any material respect as
of the time when the same shall have been made (excluding, however, any
representation or warranty as to which Section 2.03 or 3.07 shall be applicable
so long as the Servicer or the Seller shall be in compliance with Section 2.03
or 3.07, as the case may be), and the incorrectness of such representation,
warranty or statement has a material adverse effect on the Noteholders or the
Insurer and, within 30 days after written notice thereof shall have been given
to the Servicer or the Seller by the Indenture Trustee or the Issuer

                                      -72-
<PAGE>

or by Holders evidencing in the aggregate not less than 25% of the outstanding
amount of the Notes, acting together as a single Class, or, so long as no
Insurer Default has occurred and is continuing, by the Insurer, the circumstance
or condition in respect of which such representation, warranty or statement was
incorrect shall not have been eliminated or otherwise cured;

        (h) a Trigger Event (as defined in the Insurance Agreement) shall have
occurred;

then and in each and every case, so long as such Servicer Default shall not have
been remedied, either (i) the Insurer, provided no Insurer Default has occurred
and is continuing or (ii) if an Insurer Default has occurred and is continuing
Holders evidencing not less than 25% of the outstanding principal amount of the
Notes, acting together as a single Class, or the Indenture Trustee acting on
behalf of the Noteholders, and not the Seller, by notice then given in writing
to the Servicer (and to the Insurer, the Indenture Trustee and the Issuer if
given by the Noteholders) may terminate all the rights and obligations of the
Servicer under this Agreement. Upon such termination, termination of the
Servicer as custodian, if the Servicer is acting as such, can be made pursuant
to Section 2.08. On or after the receipt by the Servicer of such written notice,
all authority and power of the Servicer under this Agreement, whether with
respect to the Notes, the Contracts or otherwise, shall, without further action,
pass to and be vested in the Indenture Trustee or such Successor Servicer as may
be appointed under Section 7.02; and, without limitation, the Indenture Trustee
and the Issuer are hereby authorized and empowered to execute and deliver on
behalf of the Servicer, as attorney-in fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement of the Contracts and related
documents, or otherwise. The Servicer shall cooperate with the Indenture Trustee
and the Issuer in effecting the termination of the responsibilities and rights
of the Servicer under this Agreement, including the transfer to the Indenture
Trustee for administration by it of all cash amounts that (i) shall at the time
be held by the Servicer for deposit in, or shall have been deposited by the
Servicer in, the Collection Account or Payahead Account or (ii) shall thereafter
be received by it with respect to any Contract.

        Notwithstanding the foregoing, in the event that Onyx is not the
Servicer, then all references to the Seller in this Section 7.01 shall be of no
force and effect, and no act of Seller shall constitute a Servicer Default
hereunder.

        SECTION 7.02 TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

        Upon the termination of the Servicer by the Insurer pursuant to Section
7.01 or resignation of the Servicer pursuant to Section 6.04, the Insurer shall
appoint a successor servicer ("SUCCESSOR SERVICER"). Upon the termination of the
Servicer by the Indenture Trustee or the Noteholders pursuant to Section 7.01,
or upon the resignation of the Servicer pursuant to Section 6.04 in the event
that the Insurer is not entitled to appoint a successor servicer by operation of
Section 9.08, (i) if the Notes have not been paid in full, the Indenture Trustee
shall be the Successor Servicer, and (ii) if the Notes have been paid in full,
the Owner Trustee, acting at the direction of the Holders of Residual Interest
Instruments evidencing not less than 51% of the Percentage Interests shall
appoint a Successor Servicer. The Successor Servicer shall succeed to all the
responsibilities, duties and liabilities of the Servicer under this Agreement,
except that such Successor Servicer shall not be obligated to purchase Contracts
pursuant to Section 3.07. If

                                      -73-
<PAGE>

the Indenture Trustee acts as Successor Servicer, the Indenture Trustee shall be
entitled to such compensation (whether payable out of the Collection Account or
otherwise) as the Servicer would have been entitled to under this Agreement if
no such notice of termination shall have been given. Notwithstanding the
foregoing, if the Notes have not been paid in full, the Indenture Trustee may,
if it shall be unwilling to act, or shall, if it shall be legally unable to so
act, appoint, or petition a court of competent jurisdiction to appoint, any
established financial institution, having a net worth of not less than
$50,000,000 and whose regular business shall include the servicing of automotive
retail installment sales contracts, as the successor to the Servicer under this
Agreement. Pending appointment of any such Successor Servicer, the Indenture
Trustee shall act in such capacity as provided above. In connection with such
appointment, the Indenture Trustee or any other Successor Servicer may make such
arrangements for the compensation of such successor out of payments on Contracts
as it, the Insurer and such successor shall agree; provided, however, (i) that
such amount shall equal the product of a fixed percentage rate and the Principal
Balance, as of the commencement of each Collection Period, of each Contract and
(ii) that no such compensation shall be in excess of that previously permitted
the Servicer under this Agreement. The Indenture Trustee and such successor
shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession.

        SECTION 7.03 NOTIFICATION TO NOTEHOLDERS AND RESIDUAL INTERESTHOLDERS.

        Upon any termination of, or appointment of a successor to, the Servicer
pursuant to this Article, the Trust Agent shall give prompt written notice
thereof to Residual Interestholders at their respective addresses appearing in
the Certificate Register, and the Indenture Trustee shall give prompt written
notice thereof to Noteholders at their respective addresses appearing in the
Note Register.

        SECTION 7.04 WAIVER OF PAST DEFAULTS.

        Upon the occurrence of a Servicer Default, unless an Insurer Default
shall have occurred and be continuing, the Insurer, and only the Insurer, may
waive any default by the Servicer or the Seller, as the case may be, in the
performance of its obligations under this Agreement except a Servicer Default in
making any required deposits to or payment from the Trust Accounts in accordance
with this Agreement. Upon the occurrence of a Servicer Default, if an Insurer
Default has occurred and is continuing, Holders evidencing not less than 51% of
the outstanding principal amount of the Notes, acting together as a single
Class, on behalf of all Noteholders, shall have the right to waive any default
by the Servicer or the Seller, as the case may be, in the performance of its
obligations under this Agreement except a Servicer Default in making any
required deposits to or payment from the Trust Accounts in accordance with this
Agreement. A Servicer Default in making any required deposits to or payment from
the Trust Accounts in accordance with this Agreement may only be waived with the
consent of the Insurer (if no Insurer Default shall have occurred and be
continuing) and Holders evidencing 100% of the outstanding principal amount of
the Notes. No such waiver shall impair the Insurer's or the Noteholders' rights
with respect to subsequent defaults.

                                      -74-
<PAGE>

        SECTION 7.05 INSURER DIRECTION OF INSOLVENCY PROCEEDINGS.

        The Indenture Trustee, upon the actual knowledge of a Responsible
Officer of the Indenture Trustee, shall promptly notify the Insurer of (i) the
commencement of any of the events or proceedings (individually, an "INSOLVENCY
PROCEEDING") described in the Section 7.01(d) or 7.01(e) hereof and (ii) the
making of any claim in connection with any Insolvency Proceeding seeking the
avoidance as a preferential transfer (a "PREFERENCE CLAIM") of any payment of
principal of, or interest on, any Notes. Any Preference Amounts paid by the
Insurer shall be reimbursed to the Insurer as provided in Section 4.03 and
4.04(b). Each Noteholder, by its purchase of Notes, the Owner Trustee, the Trust
Agent and the Indenture Trustee hereby agree that, so long as no Insurer Default
has occurred and is continuing, the Insurer may at any time during the
continuation of an Insolvency Proceeding direct all matters relating to such
Insolvency Proceeding, including, without limitation, (i) all matters relating
to any Preference Claim, (ii) the direction of any appeal of any order relating
to any Preference Claim and (iii) the posting of any surety or performance bond
pending any such appeal. The Insurer shall be subrogated to the rights of the
Indenture Trustee, the Owner Trustee, the Trust Agent and each Noteholder in the
conduct of any Insolvency Proceeding, including, without limitation, all rights
of any party to an adversary proceeding action with respect to any court order
issued in connection with any such Insolvency Proceeding.

                                  ARTICLE VIII

                                   TERMINATION

        SECTION 8.01 OPTIONAL PURCHASE OF ALL TRUST PROPERTY; SATISFACTION AND
DISCHARGE OF THE INDENTURE.

        (a) On each Distribution Date as of which the Pool Balance is 10% or
less of the Original Pool Balance, the Servicer shall have the option to
purchase the remaining Trust Property from the Trust. Notice of the exercise of
such option shall be given by the Servicer to the Issuer, the Trust Agent, the
Indenture Trustee and the Insurer not later than the 10th day prior to the
specified Distribution Date and not earlier than the 15th day of the month prior
to the month of the specified Distribution Date. To exercise such option, the
Servicer shall pay to the Indenture Trustee for the benefit of the Noteholders,
by deposit in the Collection Account on the Business Day immediately preceding
the related Distribution Date, the greater of (i) the sum of (x) the Pool
Balance on the date of repurchase plus (y) accrued and unpaid interest on the
Contracts and (ii) the sum of (x) the aggregate unpaid principal amount of the
Notes plus (y) accrued and unpaid interest thereon plus (z) all amounts due to
the Insurer under the Insurance Agreement and any unreimbursed Insurer Defense
Costs. Such purchase shall be deemed to have occurred on the last day of the
related Collection Period.

        (b) Notice of any termination of the Trust shall be given by the
Servicer to the Owner Trustee, the Trust Agent, the Insurer and the Indenture
Trustee as soon as practicable after the Servicer has received notice thereof.
Such notice shall conform to the notice described in Section 9.01(c) of the
Trust Agreement.

                                      -75-
<PAGE>

        (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the Residual
Interestholders will succeed to the rights of the Noteholders hereunder and the
Owner Trustee and, on its behalf, the Trust Agent, will succeed to the rights
of, and assume the obligations of, the Indenture Trustee pursuant to this
Agreement.

        SECTION 8.02 TRANSFER TO THE INSURER.

        If (i) there are one or more Outstanding Contracts at the end of the
Collection Period ending immediately prior to the Class A-4 Final Scheduled
Distribution Date and (ii) an amount sufficient to pay the Note Distributable
Amount on the Class A-4 Final Scheduled Distribution Date has been deposited
with the Indenture Trustee by the Insurer for the benefit of the Noteholders,
then on the Class A-4 Final Scheduled Distribution Date, the Class A-4 Notes
shall be deemed to be transferred by the Class A-4 Noteholders to the Insurer or
its designee as purchaser thereof at the opening of business on the Class A-4
Final Scheduled Distribution Date and the Indenture Trustee shall execute, and
the Trust Agent shall authenticate and deliver to the Insurer or its designee,
in the name of the Insurer or its designee, as the case may be, a new Class A-4
Note evidencing the entire outstanding principal amount of the Class A-4 Notes.
Such new Class A-4 Note shall have the same terms as the Class A-4 Notes deemed
transferred by the Class A-4 Noteholders. No service charge shall be made for
the issuance of such Class A-4 Note to the Insurer or its designee, but the
Indenture Trustee or Trust Agent may require payment of a sum sufficient to
cover any tax or other governmental charge imposed in connection therewith. Such
transfer shall not diminish or restrict the Insurer's rights hereunder or under
the Insurance Agreement.

                                   ARTICLE IX

                                  MISCELLANEOUS

        SECTION 9.01 AMENDMENT.

        (a) This Agreement may be amended by the Issuer, the Seller, the
Servicer, the Indenture Trustee and the Trust Agent, collectively, with the
prior written consent of the Insurer, but without the consent of any
Noteholders, to cure any ambiguity, to correct or supplement any provisions in
this Agreement which are inconsistent with the provisions herein, or to make any
other provisions with respect to matters or questions arising under this
Agreement which are not inconsistent with the provisions of this Agreement;
provided, however, that any such action shall not materially and adversely
affect the interests of any Noteholder; and provided, further, that any such
amendment shall be deemed not to materially and adversely affect the interests
of any Noteholder if the Person requesting the amendment obtains a letter or
confirmation from each Rating Agency to the effect that such amendment would not
result in a downgrading or withdrawal of the ratings then assigned to the
applicable Notes by such Rating Agency.

        (b) This Agreement may also be amended by the Issuer, the Seller, the
Servicer, the Indenture Trustee and the Trust Agent, with the consent of the
Insurer and the Holders of Notes evidencing in the aggregate not less than 51%
of the principal amount of the Notes then

                                      -76-
<PAGE>

outstanding, acting together as a single Class, 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, collections of
payments on the Contracts or distributions that shall be required to be made for
the benefit of the Noteholders or (ii) reduce the aforesaid percentage of the
outstanding amount of the Notes the Holders of which are required to consent to
any such amendment, without the consent of all affected Noteholders.

        (c) Promptly after the execution of any such amendment or consent, the
Indenture Trustee shall furnish the written notification of the substance of
such amendment or consent to each Noteholder, respectively.

        (d) It shall not be necessary for the consent of Noteholders pursuant to
Section 9.01(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 of evidencing the
authorization by Noteholders of the execution thereof shall be subject to such
reasonable requirements as the Indenture Trustee may prescribe. Any consent by a
Noteholder to an amendment of the Agreement shall be conclusive and binding on
such Noteholder and upon all future Noteholders of such Note and of any Note
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon such Note.

        (e) The Trust Agent and the Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Trust Agent's or
the Indenture Trustee's own rights, duties or immunities under this Agreement or
otherwise and any such amendment shall be unenforceable in its entirety absent
the execution of such amendment by the Trust Agent and the Indenture Trustee.

        SECTION 9.02 PROTECTION OF TITLE TO TRUST PROPERTY.

        (a) The Servicer shall execute and file such financing statements and
cause to be executed 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 Issuer, the Noteholders, the Indenture Trustee, the
Trust Agent and the Insurer in the Contracts and in the proceeds thereof. The
Servicer shall deliver (or cause to be delivered) to the Trust Agent 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, could or might make any
financing statement or continuation statement filed in accordance with Section
9.02(a) seriously misleading within the meaning of Section 9-508(b) of the UCC,
unless it shall have given the Insurer, the Trust Agent and the Indenture
Trustee at least 60 days' prior written notice thereof.

        (c) The Seller and the Servicer shall give the Insurer, the Trust Agent
and the Indenture Trustee at least 60 days' prior written notice of any
relocation of the state of

                                      -77-
<PAGE>

organization of the Seller and the Servicer if, as a result of such relocation,
the applicable provisions of the UCC would require the filing of any amendment
of any previously filed financing or continuation statement or of any new
financing statement. The Servicer shall at all times maintain each office from
which it shall service Contracts, and its principal executive office, within the
United States.

        (d) The Servicer shall maintain or cause to be maintained 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 or credited to the
Collection Account and the Payahead Account in respect of such Contract.

        (e) The Servicer shall maintain or cause to be maintained its computer
systems so that, from and after the time of sale under this Agreement of the
Contracts to the Issuer, the Servicer's master computer records (including any
backup archives) that shall refer to a Contract indicate clearly the interest of
the Issuer and the Indenture Trustee in such Contract and that such Contract is
owned by the Issuer and has been pledged to the Indenture Trustee.

        (f) If at any time the Seller or the Servicer shall propose to sell,
grant a security interest in, or otherwise transfer any interest in automotive
retail installment sales contracts or installment loan agreements to any
prospective purchaser, lender or other transferee, the Servicer shall give or
cause to be given to such prospective purchaser, lender or other transferee
computer tapes, 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
Issuer and has been pledged to the Indenture Trustee.

        (g) The Servicer shall permit the Owner Trustee, the Trust Agent, the
Indenture Trustee and the Insurer 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, the
Trust Agent, the Indenture Trustee and the Insurer, within five Business Days, a
list of all Contracts then held as part of the Trust Property, together with a
reconciliation of such list to the Schedule of Contracts and to each of the
Distribution Date Statements furnished before such request indicating removal of
Contracts from the Trust.

        (i) The Servicer shall deliver to the Trust Agent, the Indenture Trustee
and the Insurer:

                (i)             promptly after the execution and delivery of
                                this Agreement and of each amendment hereto, an
                                Opinion of Counsel 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 Issuer and the
                                Indenture Trustee in the Contracts, and reciting
                                the details of such filings or

                                      -78-
<PAGE>

                                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 90 days after the beginning of each
                                calendar year beginning with the first calendar
                                year beginning more than three months after the
                                Closing Date an Opinion of Counsel, dated as of
                                a date during such 90-day period, 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 Issuer 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.

        (j) The Seller shall, to the extent required by applicable law, cause
the Notes to be registered with the Securities and Exchange Commission pursuant
to Section 12(b) or Section 12(g) of the Securities Exchange Act of 1934, as
amended, within the time periods specified in such sections.

        (k) 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 counterpart shall be deemed to be an original,
and all of which counterparts shall constitute but one and the same instrument.

        SECTION 9.03 GOVERNING LAW.

        THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF CALIFORNIA AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES
UNDER THE AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, EXCEPT
THAT (i) THE DUTIES OF THE TRUST AGENT AND THE INDENTURE TRUSTEE SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND (ii) THE PARTIES HERETO AGREE
THAT TO EFFECTUATE THEIR INTENT THAT THIS AGREEMENT EVIDENCES A SALE, THE
DETERMINATION OF WHETHER THE TRANSFER BY THE SELLER OF THE CONTRACTS CONSTITUTES
A SALE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF DELAWARE.

        SECTION 9.04 NOTICES.

        All demands, notices and communications under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt in the case
of

                (i)             the Seller, at 27051 Towne Centre Drive, Suite
                                200, Foothill Ranch, CA 92610, Attention: John
                                W. Hall, President, facsimile (949) 465-3530;

                                      -79-
<PAGE>

                (ii)            the Servicer, at 27051 Towne Centre Drive, Suite
                                100, Foothill Ranch, CA 92610, Attention: Don P.
                                Duffy, Executive Vice President, facsimile (949)
                                465-3992;

                (iii)           the Insurer, at 113 King Street, Armonk, New
                                York 10504, Attention: Insured Portfolio
                                Management, Structured Finance, facsimile (914)
                                765-3131;

                (iv)            the Issuer or the Owner Trustee, at the Owner
                                Trustee Corporate Trust Office (with, in the
                                case of the Issuer, a copy to the Seller);

                (v)             the Trust Agent, at the Trust Agent Office;

                (vi)            the Indenture Trustee, at the Corporate Trust
                                Office;

                (vii)           Moody's, to Moody's Investors Service, Inc., ABS
                                Monitoring Department, 99 Church Street, New
                                York, New York 10007;

                (viii)          Standard & Poor's, to Standard & Poor's Ratings
                                Services, 55 Water Street, New York, New York
                                10041, Attention: Asset Backed Surveillance
                                Department; and

                (ix)            the Custodian, to Onyx Acceptance Corporation,
                                27051 Towne Centre Drive, Suite 100, Foothill
                                Ranch, CA 92610, Attention: Don P. Duffy,
                                Executive Vice President, facsimile (949)
                                465-3992.

or, as to each of the foregoing, at such other address as shall be designated by
written notice to the other parties. Any notice required or permitted to be to
be mailed to a Noteholder shall be given by first class mail, postage prepaid,
at the address of such Holder as shown in the Note Register. Any notice so
mailed within the time prescribed herein shall be conclusively presumed to have
been duly given, whether or not such Noteholder shall receive such notice.

        SECTION 9.05 SEVERABILITY OF PROVISIONS.

        If 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 9.06 ASSIGNMENT.

        Notwithstanding anything to the contrary contained herein, except as
provided in Sections 5.02 and 6.02, neither the Seller nor the Servicer may
transfer or assign all, or a portion of, its rights, obligations and duties
under this Agreement unless such transfer or assignment (i) (A) will not result
in a reduction or withdrawal by any Rating Agency of the rating then assigned by
it to the Notes and (B) the Issuer, the Indenture Trustee and the Insurer have
consented to such transfer or assignment, or (ii) the Insurer, the Issuer, the
Indenture Trustee and Holders of

                                      -80-
<PAGE>

Notes of each Class evidencing not less than 51% of the outstanding
amount of Notes of such Class consent thereto. Any transfer or assignment with
respect to the Servicer of all of its rights, obligations and duties will not
become effective until a Successor Servicer has assumed the Servicer's rights,
duties and obligations under this Agreement. In the event of a transfer or
assignment pursuant to clause (ii) above, each Rating Agency shall be provided
with notice of such transfer or assignment.

        SECTION 9.07 THIRD PARTY BENEFICIARIES.

        Except as otherwise specifically provided herein, the parties to this
Agreement hereby manifest their intent that no third parties other than the
Insurer and, solely for the purposes of Section 6.01, the Owner Trustee and the
Trust Agent, shall be deemed a third party beneficiary of this Agreement, and
specifically that the Obligors are not third party beneficiaries of this
Agreement.

        SECTION 9.08 CERTAIN MATTERS RELATING TO THE INSURER.

        So long as an Insurer Default shall not have occurred and be continuing,
the Insurer shall have the right to exercise all rights, including voting
rights, which the Noteholders are entitled to exercise pursuant to this
Agreement, without any consent of such Noteholders; provided, however, that
without the consent of each Noteholder or Residual Interestholder affected
thereby, the Insurer shall not exercise such rights to amend this Agreement in
any manner that would (i) reduce the amount of, or delay the timing of,
collections of payments on the Contracts or distributions which are required to
be made on any Note or Residual Interest Instrument, (ii) adversely affect in
any material respect the interests of the Holders of any Notes or Residual
Interest Instruments or (iii) alter the rights of any such Holder to consent to
such amendment.

        Notwithstanding any provision in this Agreement to the contrary, for so
long as an Insurer Default shall have occurred and be continuing, the Insurer
shall not have the right to take any action under this Agreement or to control
or direct the actions of the Trust, the Seller, the Indenture Trustee, the
Servicer or the Trust Agent pursuant to the terms of this Agreement, nor shall
the consent of the Insurer be required with respect to any action (or waiver of
a right to take action) to be taken by the Trust, the Seller, the Indenture
Trustee, the Servicer, the Trust Agent or the Holders of the Notes pursuant to
the terms of this Agreement; provided, that the consent of the Insurer shall be
required at all times with respect to any amendment of this Agreement.

        SECTION 9.09 HEADINGS.

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

        SECTION 9.10 ASSIGNMENT BY ISSUER.

        The Seller hereby acknowledges and consents to any mortgage, pledge,
assignment and grant of a security interest by the Issuer to the Indenture
Trustee pursuant to the Indenture for the benefit of the Noteholders and the
Insurer of all right, title and interest of the Issuer in, to and under the
Trust Property and/or the assignment of any or all of the Issuer's rights and
obligations hereunder to the Indenture Trustee.

                                      -81-
<PAGE>

        SECTION 9.11 LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE
TRUSTEE.

        Notwithstanding anything contained herein to the contrary, this
instrument has been executed by Deutsche Bank Trust Company Delaware not in its
individual capacity but in its capacity as Owner Trustee of the Issuer and by
JPMorgan Chase Bank not in its individual capacity but in its capacity as
Indenture Trustee and Trust Agent, and in no event shall Deutsche Bank Trust
Company Delaware in its individual capacity, JPMorgan Chase Bank in its
individual capacity or any beneficial owner of the Issuer have any liability for
the representations, warranties, covenants, agreements or other obligations of
the Issuer hereunder, as to all of which recourse shall be had solely to the
assets of the Issuer.

        SECTION 9.12 ACKNOWLEDGMENT OF PARTIES; INSURER DEFENSE COSTS.

        Each of the Seller, the Servicer, the Issuer and the Indenture Trustee
acknowledge Section 4.06 of the Trust Agreement, and agree that the Trust shall
reimburse the Insurer for all Insurer Defense Costs pursuant to the applicable
provisions of the Indenture and the Sale and Servicing Agreement.

                                      -82-
<PAGE>

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

                                   ONYX ACCEPTANCE OWNER TRUST 2002-C
                                   as Issuer

                                   By:  Deutsche Bank Trust Company Delaware,
                                        not in its individual capacity but
                                        solely as Owner Trustee

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

                                   ONYX ACCEPTANCE FINANCIAL
                                   CORPORATION, as Seller

                                   By:
                                      ------------------------------------------
                                      Michael A. Krahelski
                                      Senior Vice President

                                   ONYX ACCEPTANCE CORPORATION, as Servicer and
                                   Custodian

                                   By:
                                      ------------------------------------------
                                      Don P. Duffy
                                      Executive Vice President and
                                      Chief Financial Officer

                                   JPMORGAN CHASE BANK, not in its individual
                                   capacity but solely as Indenture Trustee and
                                   as Trust Agent

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

Sale and Servicing Agreement -- Signature Page

<PAGE>

                                  SCHEDULE I-A

                          SCHEDULE OF INITIAL CONTRACTS

                           [On file with the Servicer]

<PAGE>

                                  SCHEDULE I-B

                        SCHEDULE OF SUBSEQUENT CONTRACTS

                           [On file with the Servicer]

<PAGE>

                                   SCHEDULE II

                 LOCATION AND ACCOUNT NUMBERS OF TRUST ACCOUNTS

   Location:                           Bank of New York
   Account Number:                     8900118377
   SubAccount:                         49569
   Name of Account Holder:             Collection Account - OT 2002-C,
                                       JPMorgan Chase Bank, Indenture Trustee

   Location:                           Wells Fargo Bank
   Account Number:                     4000046458
   Name of Account Holder:             Payahead Account - OT 2002-C,
                                       JPMorgan Chase Bank, as agent

   Location:                           JPMorgan Chase Bank
   Account Number:                     507947541
   Sub Account:                        10202662.2
   Name of Account Holder:             Spread Account - OT 2002-C,
                                       JPMorgan Chase Bank, Indenture Trustee

   Location:                           JPMorgan Chase Bank
   Account Number:                     507947541
   Sub Account:                        10202662.4
   Name of Account Holder:             Note Distribution Account - OT 2002-C,
                                       JPMorgan Chase Bank, Indenture Trustee

   Location:                           JPMorgan Chase Bank
   Account Number:                     507947541
   Sub Account:                        10202662.7
   Name of Account Holder:             Payment Account - OT 2002-C,
                                       JPMorgan Chase Bank

   Location:                           JPMorgan Chase Bank
   Account Number:                     507947541
   Sub Account:                        10202662.5
   Name of Account Holder:             Prefunding Account - OT 2002-C
                                       JPMorgan Chase Bank

   Location:                           JPMorgan Chase Bank
   Account Number:                     507947541
   Sub Account:                        10202662.6
   Name of Account Holder:             Capitalized Interest Account - OT 2002-C
                                       JPMorgan Chase Bank
<PAGE>

                                    EXHIBIT A

                        FORM OF APPOINTMENT OF CUSTODIAN

[Name and address of Custodian]

Re:     Onyx Acceptance Owner Trust 2002-C
        Auto Loan Backed Notes, Series 2002-C

Dear Sirs:

        Reference is hereby made to the Sale and Servicing Agreement (the "Sale
and Servicing Agreement") dated as of July 1, 2002 by and among Onyx Acceptance
Owner Trust 2002-C, as Issuer (the "Issuer"), Onyx Acceptance Corporation, Onyx
Acceptance Financial Corporation and JPMorgan Chase Bank, as Indenture Trustee
(the "Indenture Trustee") and Trust Agent ("Trust Agent"). Terms used herein
which are defined in the Sale and Servicing Agreement have the respective
meanings set forth in the Sale and Servicing Agreement.

        You are revocably appointed as the agent of and bailee for the Indenture
Trustee to act as custodian, in accordance with the terms and provisions of the
Sale and Servicing Agreement, of the Contract Documents relating to each
Contract and the related Obligor and Financed Vehicle. Please acknowledge your
acceptance of such appointment and your agreement to act as custodian in
accordance with the terms and provisions of the Sale and Servicing Agreement by
signing below in the space indicated therefor.

        By accepting such appointment you acknowledge that (i) the Indenture
Trustee (if the Notes have not been paid in full and the Indenture has not been
satisfied and discharged) and the Issuer or (ii) the Insurer, may terminate such
appointment at any time, with or without cause, by written notice to you.

                                            Very truly yours,

                                            JPMORGAN CHASE BANK,
                                            not in its individual capacity, but
                                            solely as Indenture Trustee

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

<PAGE>

                                            ONYX ACCEPTANCE OWNER TRUST 2002-C

                                            By:
                                               ---------------------------------
                                               Deutsche Bank Trust Company
                                               Delaware not in its individual
                                               capacity, but solely as Owner
                                               Trustee

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

ACCEPTED AND AGREED:

[Name of Custodian]

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

MBIA Insurance Corporation

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

<PAGE>

                                    EXHIBIT B

                                 FORM OF POLICY

                              [Begins on Next Page]

<PAGE>

                                   EXHIBIT C-1

                          FORM OF TRANSFER CERTIFICATE

        The Transfer Certificate, dated as of _________, 2002, is delivered
pursuant to Section 2.01(c) of the Sale and Servicing Agreement dated as of July
1, 2002 (the "Agreement") between Onyx Acceptance Owner Trust 2002-C, as Issuer
(the "ISSUER"), Onyx Acceptance Financial Corporation, as Seller (the "SELLER"),
Onyx Acceptance Corporation, as Servicer and Custodian, and JPMorgan Chase Bank,
as Indenture Trustee and as Trust Agent (the "Indenture Trustee"). Terms used in
this Transfer Certificate which are not defined herein have meanings assigned to
such terms in the Agreement.

        I, __________________, the ____________ of the Seller, do hereby
certify:

        1. Attached hereto as Schedule I is a list of Prefunded Contracts
setting forth the Contract Number, Date of Origination, Maturity Date, Monthly
P&I, Original Principal Balance, Outstanding Principal Balance and APR for each
such Prefunded Contract. Such Schedule I is a list of Prefunded Contracts
referred to in the definition of "Schedule of Contracts" in the Agreement, and
is deemed incorporated into and made a part thereof. Such Prefunded Contracts
have an aggregate Outstanding Principal Balance of $________________, and all
Contract Documents relating thereto have been delivered to the Custodian as of
the date hereof. The Prefunding Cut-Off Date with respect to the Prefunded
Contracts transferred on the date hereof is _____________, 2002.

        2. The aggregate Outstanding Principal Balance of all Prefunded
Contracts as of their respective Prefunding Cut-Off Dates delivered to the
Custodian, on behalf of the Indenture Trustee, pursuant to this Transfer
Certificate and each Transfer Certificate delivered up to the date hereof and
after the Closing Date is $_________, which amount is less than or equal to the
Prefunded Amount.

        3. Each of the conditions set forth in Sections 2.01(c) and 4.08 of the
Agreement has been met as of this Prefunding Transfer Date.

        4. The representations and warranties as set forth in Section 2.02(a)
and (d) of the Agreement with respect to the Seller and the Prefunded Contracts
delivered hereunder are true and correct as of this Prefunding Transfer Date.

        Please transfer immediately available funds by 4:00 New York time today
in the amount of $___________________ to Seller in accordance with the wire
instructions below.

<PAGE>

        IN WITNESS WHEREOF, the undersigned has caused this Transfer Certificate
to be delivered to the Issuer, the Indenture Trustee and the Insurer as of the
date first above written.

                                           ONYX ACCEPTANCE FINANCIAL CORPORATION

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

Wiring Instructions:

        Beneficiary:

___________:        _____________________________
                    _____________________________
                    _____________________________

        ABA:                 __________________________
        Bank Acct. #         __________________________
        $ Amount:            __________________________
        Notation:            Proceeds from 2002-C Owner Trust Prefunding Account

Consented to and agreed to (if the balance in the Prefunding Account prior to
the Prefunding Transfer Date to which this certificate relates exceeds
$30,000,000).

MBIA Insurance Corporation

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

<PAGE>

                                   EXHIBIT C-2

                   FORM OF PREFUNDING CLOSING DATE CERTIFICATE

        This Prefunding Closing Date Certificate, dated as of _________, 2002,
is delivered pursuant to Section 2.01(j) of the Sale and Servicing Agreement
dated as of July 1, 2002 (the "AGREEMENT") between Onyx Acceptance Owner Trust
2002-C, as Issuer, Onyx Acceptance Financial Corporation, as Seller (the
"SELLER"), Onyx Acceptance Corporation, as Servicer and Custodian, and JPMorgan
Chase Bank, as Indenture Trustee and as Trust Agent (the "INDENTURE TRUSTEE").
Terms used in this Prefunding Closing Date Certificate which are not defined
herein have meanings assigned to such terms in the Agreement.

        I, __________________, the ____________ of the Seller, do hereby
certify:

        1. All Contract Documents relating to the Prefunded Contracts have
been delivered to the Custodian, on behalf of the Indenture Trustee, on or
before the date hereof.

        2. The aggregate Outstanding Principal Balance of all Prefunded
Contracts as of their respective Prefunding Transfer Dates conveyed to the
Issuer and pledged to the Indenture Trustee, as described in the Prefunding
Transfer Certificates delivered on and after the Closing Date up to the date
hereof, is $_________, which amount is less than or equal to the original
Prefunded Amount.

        3. Each of the conditions set forth in Section 2.01(j) of the Agreement
has been met as of the Prefunding Closing Date and each of the conditions set
forth in Sections 2.01(c) and 4.08 of the Agreement was met as of each
Prefunding Transfer Date.

        IN WITNESS WHEREOF, the undersigned has caused this Prefunding Closing
Date Certificate to be delivered to each Rating Agency, the Insurer and the
Indenture Trustee as of the date first above written.

                                            ONYX ACCEPTANCE FINANCIAL
                                            CORPORATION

                                            By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Office:
                                                   -----------------------------Exhibit 10.1

A request for confidential treatment for portions of this exhibit has been filed
with the United States Securities and Exchange Commission. The portions for
which confidential treatment has been requested have been separately filed with
the commission. The mark "Confidential Treatment Requested" has been inserted at
all places within this Exhibit where information has been deleted.

                     AUTHORIZED SALES AND SERVICE AGREEMENT

                                     BETWEEN

                     SOUTHWESTERN BELL MOBILE SYSTEMS, INC.
                         d/b/a CELLULAR ONE(R)- Chicago

                                       AND

                             AREAWIDE CELLULAR, INC.

         THIS AGREEMENT is made and entered into this 1st day of October, 1997,
by and between SOUTHWESTERN BELL MOBILE SYSTEMS, INC. d/b/a CELLULAR ONE(R) -
Chicago ("CELLULAR ONE"), a Delaware and Virginia Corporation, with its
principal place of business at 930 North National Parkway, Schaumburg, Illinois
60173, acting on behalf of itself as licensee of the Chicago MSA non-wireline
cellular system and as a provider of other services, and on behalf of Gary
Telephone Company, an Indiana general partnership, as licensee of the Gary MSA
non-wireline cellular system, and Areawide Cellular, Inc. ("AGENT"), an Illinois
corporation, with its principal place of business at 830 N. Meacham, Schaumburg,
Illinois 60173.

                                   WITNESSETH:

         Whereas, CELLULAR ONE is involved in the development, establishment and
sale of cellular radio service ("CRS") which requires the use by CRS Subscribers
of cellular terminal equipment;

         Whereas, CELLULAR ONE and/or its affiliates is or may become involved
in the development, establishment and/or sale of other services, including but
not limited to long distance/toll service for CRS Subscribers, paging services,
other Commercial Mobile Radio Services, and competitive landline local exchange
and/or long distance services (collectively referred to as the "Services");

         Whereas, CELLULAR ONE has regulatory authority to provide CRS in the
  cellular geographic service area(s) within the Chicago and Gary metropolitan
  statistical areas and desires to provide CRS in those areas, as well as other
  Services in designated areas, through Agents, Retailers, Resellers, and direct
  sale to Subscribers;

         Whereas, CELLULAR ONE has adopted and used or intends to adopt and use
certain valuable Marks in the provision of its Services and CPE;

         Whereas, AGENT desires to sell certain of CELLULAR ONE's Services as a
nonexclusive, authorized agent of CELLULAR ONE, and desires to sell or lease,
install, provide warranty service and maintain CPE necessary for Subscribers to
utilize such Services;

<PAGE>

         Now, therefore, in consideration of the mutual promises herein
contained, it is hereby agreed:

         1. DEFINITIONS

         Activation. The act of initiating an Authorized Service in or to a
Subscriber's CPE by CELLULAR One.

         Affiliate. A person, association, partnership, corporation or
joint-stock company, trust or other business entity however organized ("Entity")
is an affiliate of that person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
such Entity. Control shall be defined as (i) ownership of a majority of the
voting power of all classes of voting stock or (ii) ownership of a majority of
the beneficial interests in income and capital of an entity other than a
corporation.

         Authorized Services. Those Services provided by CELLULAR ONE that AGENT
is authorized hereunder to sell on behalf of CELLULAR ONE, including CRS and any
other Services set forth on Exhibit A hereto.

         Area. With respect to CRS and ancillary services, Area is defined as
the Chicago and Gary metropolitan statistical areas ("MSAs") within which
CELLULAR ONE has regulatory authority to provide CRS. The counties generally
comprising these MSAs are listed in Exhibit A, and any additional adjoining
counties that may be added to the areas served by CELLULAR ONE shall be deemed
added to the Area, without the necessity of an amendment to this Agreement. With
respect to other Authorized Services, Area is defined as those areas in which
Cellular One is authorized to and is providing or reselling such Authorized
Service, except as may be otherwise defined or limited on Exhibit A.

         CELLULAR ONE. The term CELLULAR ONE includes Southwestern Bell Mobile
Systems, Inc. d/b/a Cellular One - Chicago, and, where applicable to a specific
Service, includes that affiliate of Southwestern Bell Mobile Systems, Inc., that
provides such Service.

         Cellular Radio Service (CRS). Any and all service (including resale of
said service) authorized by the Federal Communications Commission ("FCC") under
Part 22 of its rules as amended under the cellular orders set forth in An
Inquiry Into the Use of the Bands 825-845 MHZ and 870-890 MHZ for Cellular
Communications Systems; and Amendments of Parts 2 and 22 of the Commission's
Rules Relative to Cellular Communications Systems (CC Docket No. 79-318), 86
F.C.C. 2d 469 (1981), modified as set forth in reconsideration order 89 F.C.C.
2d 58 (1982), and as further modified as set forth in other rules or orders from
time to time.

         Commercial Mobile Radio Services (CMRS). Any and all services
(including resale of said services) that (1) fit the definition of commercial
mobile services pursuant to Section 332 of the Communications Act, 47 U.S.C.
ss.332, (2) are subject to regulation as commercial mobile radio services by the

<PAGE>

FCC under the orders set forth in Implementation of Sections 3(n) and 332 of the
Communications Act; Regulatory Treatment of Mobile Services (CC Docket No.
93-252) or such other orders or rules as may be in effect from time to time, or
(3) are the functional equivalent of a commercial mobile service as defined in
47 U.S.C. ss.332. CMRS shall in any event include CRS, all forms of specialized
mobile radio service (SMR and ESMR), and personal communications services (PCS).

         CPE. The customer premises equipment including cellular terminal
equipment, that a Subscriber needs for using CRS and other Authorized Services.

         Marks. Trademarks, service marks, trade names, insignia, symbols,
logos, decorative designs, and/or other identifying insignia that CELLULAR ONE
owns or is licensed or sublicensed to use in connection with its Services or
products relating thereto, and which CELLULAR ONE, in its sole discretion,
determines from time to time that AGENT is authorized to use.

         Paging Services. One-way non-voice communication services provided by a
communication common carrier and commonly referred to as paging services.

         Reseller. Any entity that purchases bulk quantities of a
telecommunications service from a telecommunications carrier for resale
distribution, directly or indirectly, to ultimate users of such service.

         Subscriber. A customer of an Authorized Service provided by CELLULAR
ONE. The CRS telephone number or other service access number assigned to a
customer of CELLULAR ONE's Authorized Services is deemed to be a separate
Subscriber, regardless of how many CRS telephone numbers or service access
numbers may be used by any one customer.

         Successor. A person, association, partnership, corporation, joint stock
company, trust or other business entity, however organized, that succeeds to or
acquires the rights, title or interests of another.

         2. ACKNOWLEDGEMENTS AND REPRESENTATIONS

         CELLULAR ONE and AGENT acknowledge that they have read this Agreement
and understand and accept the terms, conditions and covenants contained herein
as being reasonably necessary to maintain CELLULAR ONE's high standards for its
CRS and other Services thereby to protect and preserve the goodwill of CELLULAR
ONE's CRS, Services and Marks.

         AGENT has read and understands the obligations imposed by the FCC upon
CRS licensees and their duties to CELLULAR ONE as specified in Section 22.912 of
the FCC's cellular rules.

         AGENT acknowledges that CELLULAR ONE's ability to provide CRS and other
Services is conditioned upon the continuing validity of its FCC operating
license(s) and any other required licenses, certificates and permits, and may be

<PAGE>

affected by state and federal court decisions and regulatory approvals. CELLULAR
ONE makes no representation concerning whether said licenses, certificates and
permits will continue to be valid. AGENT agrees that if CELLULAR ONE is
prohibited from, or otherwise ceases, selling an Authorized Service in the Area,
CELLULAR ONE may declare this Agreement null and void as to any or all
Authorized Services with no penalty.

         AGENT acknowledges that it has conducted an independent investigation
of the business of selling CRS and any other Authorized Services that it will
conduct pursuant to this Agreement. AGENT recognizes that entry into business as
an AGENT of CELLULAR ONE involves business risks and the AGENT's success in such
business will depend primarily upon its abilities and efforts. CELLULAR ONE
expressly disclaims the making of, and Agent acknowledges that it has not
received or relied upon, any GUARANTY, express or implied, as to the amount of
commissions or other gross revenue that it may earn as a result of its agency
relationship with CELLULAR ONE and acknowledges that it has no knowledge of any
representations relating to its agency relationship with CELLULAR ONE by an
officer, employee or agent of CELLULAR ONE that are contrary to the terms
herein. AGENT represents to CELLULAR ONE, as an inducement to its entry into
this Agreement, that AGENT has made no misrepresentations to CELLULAR ONE in its
application for appointment as a nonexclusive, authorized AGENT of CELLULAR ONE
or in any other manner.

         AGENT and CELLULAR ONE mutually agree that they shall not have any
liability to the other for any lost profits or consequential damages, even if
advised of the possibility of such damages.

         3. RELATIONSHIP OF THE PARTIES

         CELLULAR ONE hereby appoints AGENT as a nonexclusive, authorized agent
in the Area to solicit and contract, on behalf of CELLULAR ONE, with Subscribers
for the Authorized Services, subject to all of the terms and conditions hereof.

         During the term of this Agreement or thereafter, CELLULAR ONE reserves
the right without obligation or liability to AGENT to market the Authorized
Services and CPE in the same geographical areas served by AGENT, whether through
CELLULAR ONE's own representatives or through others including, but not limited
to other authorized agents, retailers, resellers and distributors.

         Upon enrollment of a particular Subscriber, that Subscriber shall
become a customer of CELLULAR ONE, and CELLULAR ONE shall offer and furnish such
customer billing services as CELLULAR ONE deems appropriate. CELLULAR ONE shall
be responsible to collect any charges for Authorized Services from Subscribers.

         With the sole exception of the Subscribers enrolled by AGENT for the
account of CELLULAR ONE, with respect to which AGENT acts as agent of CELLULAR
ONE and owes CELLULAR ONE the fiduciary and other obligations of an agent to its
principal, CELLULAR ONE and AGENT acknowledge and agree that their agency
relationship arising from this Agreement does not constitute or create a general
agency, joint venture, partnership, employment relationship or franchise between
them.

<PAGE>

         The parties agree that personnel employed by AGENT to perform services
under this Agreement are not CELLULAR ONE employees and AGENT assumes full
responsibility for their acts. Such personnel employed by AGENT shall be
informed that they are not entitled to the provisions of any CELLULAR ONE
employee benefits. With respect to such personnel, AGENT shall have sole
responsibility for supervision, daily direction and control. CELLULAR ONE will
not be responsible for worker's compensation, disability benefits, unemployment
insurance and withholding income taxes and social security for said personnel.

         3A. RELATIONSHIPS WITH SUBAGENTS

         AGENT warrants it has entered into or may enter into appropriate
agreements with all persons (other than AGENT's own employees) and businesses
that sell the Authorized Services on behalf of AGENT ("sub-agents"), and that
such agreements are sufficient to enable it to comply with all provisions of
this Agreement. Without limiting the generality of the foregoing, AGENT
understands, covenants and agrees that: (1) any sub-agents appointed by AGENT
must agree to comply with all of the restrictive covenants in Paragraph 20 of
this Agreement and the Confidentiality Obligations in Paragraph 33 of this
Agreement; (2) AGENT will inform CELLULAR ONE thirty (30) days in advance of the
identity of any proposed sub-agent; CELLULAR ONE shall have the right to
disapprove the appointment of any sub-agent that reflects adversely upon
CELLULAR ONE in the opinion of CELLULAR ONE or which is or has been associated
in any way with a competitor of CELLULAR ONE in the Area or for any other
reasonable business purpose; and CELLULAR ONE shall have the right to request
the removal of any sub-agent who breaches the agreements set forth above or
whose actions, in the opinion of CELLULAR ONE, reflect adversely upon CELLULAR
ONE; (3) AGENT shall inform CELLULAR ONE prior to any intended relocation of any
of its sub-agents which relocation shall then be subject to CELLULAR ONE's
approval; and (4) CELLULAR ONE may require any further information it deems
necessary prior to AGENT's appointment of the sub-agent. A complete list of all
of AGENT's current sub-agents, along with the names of the owners, managers,
principals, officers and directors thereof is attached as Exhibit B. AGENT
understands and agrees that sub-agents of AGENT shall not be permitted to use,
in any manner whatsoever, the name, trademarks or service marks of CELLULAR ONE,
unless expressly agreed in a writing signed by AGENT, CELLULAR ONE and
sub-agent. Any such use of CELLULAR ONE's name, trademarks or service marks
shall be made a ground for immediate termination of any sub-agent agreements.

         4. AGENT RESPONSIBILITIES

         (a) AGENT agrees to provide materials and advertising to actively
         promote CELLULAR ONE Authorized Services and appropriate sales
         facilities to enhance the sale of CELLULAR ONE Authorized Services.

<PAGE>

         (b) AGENT will sell CELLULAR ONE's Authorized Services to customers by
         employing the following techniques (in addition to others): providing
         demonstrations of CELLULAR ONE's Service, explaining its benefits,
         explaining the terms and conditions of purchase of the Service,
         providing sales literature prepared by CELLULAR ONE, and training the
         customer in the use of CELLULAR ONE's Service. AGENT will offer the
         Authorized Services subject to all of the applicable terms of CELLULAR
         ONE's form of contract for customers.

         (c) AGENT agrees that it must obtain CELLULAR ONE's prior written
         approval to open any locations in addition to those listed in Exhibit
         A. However, an amendment of this Agreement shall not be necessary to
         subject any new or additional AGENT locations to the terms and
         conditions of this Agreement; rather, the opening of such locations
         shall automatically subject them to the terms and conditions of this
         Agreement. AGENT agrees to establish and maintain installation and
         maintenance facilities at the locations set forth in Exhibit A and
         other such locations as AGENT may establish from time to time to the
         satisfaction of CELLULAR ONE, approval of which shall not be
         unreasonably withheld, and to furnish high quality and prompt
         installation, warranty and maintenance service for all CPE sold or
         leased by it to Subscribers. Notwithstanding anything to the contrary
         contained herein, the closing of one or more locations shall not be
         considered a default by AGENT so long as AGENT keeps open at least 80%
         (eighty percent) of the locations which are initially listed in Exhibit
         A and operates them in compliance with all of the requirements hereof.

         (d) AGENT, at its own expense, shall obtain from the manufacturer(s)
         and distributor(s) all required training in the operation,
         installation, warranty and maintenance service of CPE. If AGENT (1)
         chooses to handle any one or more of the CELLULAR ONE rental, lease or
         third-party financing plans and installs the equipment provided
         pursuant thereto, or (2) performs installs of other CELLULAR ONE-owned
         equipment provided directly to customers and referred to AGENT for
         installation (as required by Paragraph 4(o)), then AGENT shall be
         obligated to comply with all of the requirements of the Cellular One
         Authorized Service Center Program, as amended from time to time, and
         with the specific requirements described in the remainder of this
         subparagraph (d). AGENT's installation, warranty and maintenance
         service CRS facility shall be required to obtain certification from the
         manufacturer(s) of the CPE that AGENT leases or sells and AGENT shall
         be responsible to secure such certifications. AGENT may only delegate
         by contract its installation, warranty and maintenance service
         obligations hereunder to a subcontractor with the express prior written
         approval of CELLULAR ONE, which will not be unreasonably withheld or
         withdrawn, and any approval necessary from each manufacturer and/or
         distributor of an approved model of CPE to be sold or leased by AGENT.
         Such delegation shall be by written agreement between AGENT and the
         service subcontractor. Notwithstanding such agreement with a service
         subcontractor, AGENT shall remain responsible to CELLULAR ONE for all
         installation, warranty and maintenance service obligations hereunder.
         AGENT shall reimburse CELLULAR ONE for the reasonable cost of
         installation, repair or warranty which CELLULAR ONE, in its sole
         discretion, deems necessary to have performed at a facility other than
         AGENT's for customers as to whom AGENT fails to comply with CELLULAR
         ONE's standards applicable thereto.

<PAGE>

         (e) AGENT agrees to maintain sufficient liability insurance to protect
         CELLULAR ONE from all customer claims arising out of the acts,
         omissions, and/or representations of AGENT. CELLULAR ONE shall be named
         as an additional insured party on each policy. Such insurance coverage
         shall be maintained under one or more policies of insurance from a
         recognized insurance company qualified to do business within the Area
         providing in the aggregate minimum liability protection of ONE MILLION
         DOLLARS per occurrence for bodily and personal injury and death and ONE
         MILLION DOLLARS per occurrence of property damage. Each such insurance
         policy shall provide for not less than thirty (30) days' prior notice
         to all insured of any modification, cancellation or non-renewal.
         CELLULAR ONE may, at any time and with ninety (90) days' prior notice
         to AGENT, require AGENT to increase its coverage of any type of
         insurance in reasonable amounts and require different or additional
         kinds of insurance, to reflect inflation, identification of special
         risks, changes in law or standards of liability, higher damage awards
         or other reasonable changes in circumstances. Upon request by CELLULAR
         ONE, AGENT shall furnish proof satisfactory to CELLULAR ONE that
         insurance coverage required hereunder is in force.

         (f) AGENT agrees to maintain operations and follow procedures that are
         in full compliance with CELLULAR ONE's requirements as specified,
         amended and distributed from time to time, and to allow CELLULAR ONE
         reasonable access to AGENT's facilities for inspection.

         (g) For its own account, AGENT agrees to sell or lease CPE to be used
         by Subscribers of the Authorized Services, including CELLULAR ONE's
         CRS, or other End Users. AGENT may only offer FCC approved equipment.
         AGENT agrees to maintain an inventory of CPE sufficient to meet
         reasonable anticipated demand therefore by Subscribers which AGENT
         enrolls. If AGENT handles any CELLULAR ONE rental or lease plans in
         AGENT's inventory, AGENT agrees to comply with any inventory control or
         tracking procedures as CELLULAR ONE may adopt from time to time. AGENT
         also agrees to maintain a minimum inventory of parts. The parties agree
         that CELLULAR ONE may restrict AGENT's choice in CPE which AGENT may,
         on its own behalf, sell, lease or otherwise make available with
         CELLULAR ONE Services, which will further CELLULAR ONE's legitimate
         business objectives, if CELLULAR ONE reasonably maintains that the
         particular type of CPE restricted reflects adversely upon the quality
         of CELLULAR ONE's Services by reason of the limitations or
         characteristics of the equipment and CELLULAR ONE will provide AGENT
         thirty (30) days' notice of such restriction. AGENT agrees not to use
         any CPE bearing trademarks similar to or resembling the Marks of
         CELLULAR ONE. Except for any CELLULAR ONE-owned CPE which AGENT handles
         on behalf of CELLULAR ONE as part of a rental, lease or third-party
         financing plan, all CPE sales and leases shall be made by or on behalf
         of AGENT for its own account and not as agent for, or for the account
         of, CELLULAR ONE. AGENT may establish fees and charges for sales prices

<PAGE>

         and lease charges for the CPE and CELLULAR ONE shall have no control
         over such prices or for AGENT's CPE. With respect to the sale or lease
         of AGENT's CPE, Subscribers shall be customers of AGENT and CELLULAR
         ONE shall have no responsibility to AGENT or to Subscribers with
         respect to the sale or lease of AGENT's CPE. CELLULAR ONE is not
         obligated to offer any lease, rental or other CPE program to AGENT.

         (h) AGENT agrees to take all necessary steps to ensure compliance with
         AGENT obligations under this Agreement by AGENT and its personnel and
         any other parties involved in the sale of the Authorized Services by
         AGENT, including but not limited to sub-agents.

         (i) AGENT agrees that AGENT will at all times faithfully, honestly and
         diligently perform its obligations hereunder, and that AGENT will
         continuously exert its best efforts to promote and enhance the use of
         CELLULAR ONE's Authorized Services.

         (j) In the relevant Area, AGENT agrees that it will not, at any time
         either during the term of this Agreement, or any extension thereof, (1)
         induce, influence or suggest to any Subscriber of CELLULAR ONE's CRS to
         purchase CRS or any other CMRS from another provider or reseller of CRS
         or CMRS, or (2) induce, influence or suggest to any Subscriber of any
         other Authorized Service to purchase a competing service from any other
         provider or reseller of such competing service, whether or not the
         competing service is technologically the same as the Authorized Service
         in question. As more fully described in paragraph 20, AGENT agrees not
         to act as a representative or agent of any other reseller or provider
         of CMRS or any Authorized Service in the relevant Area. Notwithstanding
         any language to the contrary, AGENT shall have the right to enter into
         or continue its current provision of Paging Services.

         (k) AGENT agrees not to take any action inconsistent with the
         provisions of this Agreement and shall use its best efforts to support
         CELLULAR ONE's efforts in providing the Authorized Services to
         Subscribers.

         (1) AGENT agrees not to take any action inconsistent with, and agrees
         to support CELLULAR ONE's efforts before regulatory authorities
         regarding any modification of rates.

         (m) AGENT agrees that during or after the term of this Agreement, AGENT
         will not reveal, divulge, make known, sell, exchange, give away, or
         transfer in any way any part of its list of Subscribers or use such
         information for any purpose other than 1) AGENT (but no other successor
         business entity) maintaining such periodic contact with Subscribers as
         is required for warranty service, installation or maintenance of CPE,
         and 2) AGENT (but no other corporate entity) business activities
         unrelated to CRS, CNMS, or any other Authorized Services; provided,
         however, AGENT shall be under no restriction regarding the use of such
         information as long as such use is consistent with the terms of this
         Agreement.

<PAGE>

         (n) AGENT agrees to advertise association with CELLULAR ONE Authorized
         Services as an authorized AGENT of CELLULAR ONE, pursuant to any
         written procedures CELLULAR ONE may publish from time to time.

         (o) AGENT agrees to use its best efforts to install and maintain CPE
         for Subscribers referred to AGENT by CELLULAR ONE's Sales Associates
         for installation and maintenance on a "first come, first serve basis,"
         such installation and maintenance to be according to CELLULAR ONE
         standards established from time to time.

         5. CELLULAR ONE'S RESPONSIBILITIES

         CELLULAR ONE will:

         (a) Upon approval, and subject to compliance with procedures and
         guidelines established from time to time, CELLULAR ONE will furnish the
         Authorized Services to Subscribers.

         (b) Secure any necessary regulatory approvals to conduct the Authorized
         Services.

         (c) Establish the rates, terms, and conditions of the sale of its
         Authorized Services to Subscribers.

         (d) Establish the administrative procedures and guidelines for sale of
         Authorized Services, enrollment of Subscribers, and customer service
         provided to Subscribers.

         (e) Promote CELLULAR ONE's Authorized Services and provide promotional
         literature as CELLULAR ONE deems necessary and appropriate. CELLULAR
         ONE may advertise CELLULAR ONE's Authorized Services from time to time
         if it deems necessary and appropriate.

         (f) Provide at cost a reasonable number of CELLULAR ONE sales brochures
         and other information and illustrative material for the preparation of
         catalogs, advertising and other promotional activities as CELLULAR ONE
         deems necessary and appropriate.

         (g) Provide a reasonable amount of training on sales of CELLULAR ONE's
         Authorized Services and administrative procedures associated with the
         enrollment of Subscribers.

         6. CPE BEARNG CELLULAR ONE'S MARKS

         AGENT shall not have the right, except after CELLULAR ONE's approval,
to sell CPE bearing CELLULAR ONE's Marks to any person or entity other than a
Subscriber to whom AGENT has sold CELLULAR ONE's Authorized Service(s)
hereunder. This clause is intended to protect CELLULAR ONE's Marks and to assure
that such Marks are used properly.

<PAGE>

         7. COMPENSATION

         CELLULAR ONE will compensate AGENT for Subscribers enrolled by AGENT
  onto CELLULAR ONE's Authorized Services in accordance with the following terms
  and conditions:

         (a) CELLULAR ONE may withhold and offset or apply AGENT compensation
against any past due amount owed to CELLULAR ONE by AGENT. Whenever AGENT fails
to comply with any term hereof or any procedure in the Administrative Procedures
Manual or AGENT does not provide complete and/or accurate information concerning
Subscribers to whom an Authorized Service is sold or, if applicable, the
CELLULAR ONE CPE is sold or leased, CELLULAR ONE shall have the right to
withhold all or a portion of any compensation or other amount otherwise payable
hereunder to AGENT with respect to such Authorized Service or, if applicable,
CPE. CELLULAR ONE reserves the right to establish and modify procedures to
govern the specific manner in which any compensation is administered and to
modify the periodic intervals for payments, by notice to AGENT. Residual
commissions and any other compensation shall only continue to accrue as long as
this Agreement is in effect, and the expiration or termination of this Agreement
shall effectively terminate AGENT's right to any further commissions or other
amounts except for those residual commissions that accrued prior to the date of
expiration or termination, provided that a knowingly wrongful termination by
CELLULAR ONE without cause or justification shall not cut off AGENT's right to
payment of commissions for the term of this Agreement.

         (b) Unless provided otherwise in an annual or other addendum or
amendment to this Agreement, from the commencement date through December 31,
2000, CELLULAR ONE will pay Residual Commissions on a monthly basis to AGENT for
each active CRS Subscriber that has been accepted and activated by CELLULAR ONE,
provided that (1) AGENT is in compliance with the obligations and conditions of
this Agreement, and (2) a properly completed and signed customer service
contract has been received by CELLULAR ONE within fifteen (15) days after
activation of such Subscriber's cellular service. Residual Commissions will be
paid within forty-five (45) days after the end of each calendar month or at such
other periodic interval as CELLULAR ONE may establish from time to time. Taxes,
long distance charges, equipment charges, directory assistance charges, any
third party charges passed through to Subscribers, one-time fees, enhanced
feature charges, roamer charges and charges other than recurring CRS base
charges and local airtime charges shall not be included in the computation of
the Residual Commission. The Residual Commission is an amount equal to
[CONFIDENTIAL TREATMENT REQUESTED] of the total recurring CRS base charges and
local airtime charges billed by CELLULAR ONE to AGENT-originated CRS
Subscribers. Residuals do not continue to accrue after expiration or termination
of this Agreement, or after a Subscriber has completed an ESN replacement or
upgrade through a different point of distribution.

Payment of the above referenced Residual Commissions is subject to the
requirement that AGENT must have annual net growth in AGENT-originated CRS
Subscribers who are active and in good standing on CELLULAR ONE's cellular radio
system. That is, the total number of AGENT-originated Subscribers who are active

<PAGE>

and in good standing as of the first of the calendar year must be greater than
such number as of the first of the preceding calendar year. Otherwise, if there
is no net growth or if there is a reduction, then the Residual Commission
payable for the current year shall be one percentage point less than the
Residual Commission described above.

         8. USE OF MARKS BY AGENT

         Periodically CELLULAR ONE will publish a list of Marks AGENT is
licensed to use under the Agreement. Such list will also be supplemented with
reasonable rules and regulations pertaining to the Marks, which AGENT agrees to
follow. AGENT acknowledges that its right to use the Marks is derived solely
from the Agreement and is limited to the identification of AGENT as an agent of
CELLULAR ONE. AGENT agrees to comply with all reasonable rules and procedures
pertaining to such Marks prescribed by CELLULAR ONE from time to time during the
term of this Agreement. AGENT recognizes the great value of the goodwill
associated with the Marks, and acknowledges that the Marks and all rights herein
and goodwill pertaining thereto belong exclusively to CELLULAR ONE, and that the
Marks have a secondary meaning in the mind of the public. AGENT acknowledges and
agrees that all usage of the Marks by AGENT and any goodwill established thereby
shall inure to the exclusive benefit of CELLULAR ONE and its Affiliates and that
this Agreement does not confer any goodwill or other interests in the Marks upon
AGENT. Any unauthorized use of the Marks by AGENT, or any use not in compliance
herewith, shall constitute an infringement of the rights of CELLULAR ONE and its
Affiliates in and to the Marks and shall further constitute a material breach of
this Agreement. AGENT shall use the Marks with such words qualifying or
identifying the agency relationship of CELLULAR ONE and AGENT as CELLULAR ONE
from time to time shall reasonably prescribe. AGENT shall not use the Marks as
part of any corporate or trade name or with any prefix, suffix or other
modifying words, terms, designs or symbols, or in any modified form, nor may
AGENT use the Marks in connection with the sale or lease of any unauthorized
product or service or in any other manner not expressly authorized by this
Agreement or separately in writing by CELLULAR ONE, If AGENT uses CELLULAR ONE's
Marks on any of AGENT's stationery, other forms or business cards, AGENT agrees
to display the Marks on such stationery, other forms, and business cards used in
its business of selling the Authorized Services in the manner prescribed by
CELLULAR ONE. AGENT agrees to obtain such fictitious or assumed name
certificates or registrations as may be required by applicable law, provided the
fictitious or assumed name is approved in writing by CELLULAR ONE and CELLULAR
ONE is provided a copy of the certificate and/or registration. If any fictitious
or assumed name used by Agent includes anything that identifies CELLULAR ONE or
its Marks, CELLULAR ONE may at any time require AGENT to cease using such
fictitious or assumed name, and to cancel any corresponding certificate and/or
registration. If it becomes advisable at any time in CELLULAR ONE's sole
discretion for AGENT to modify or discontinue use of any Mark or substitute one
or more additional Marks to identify its relationship with CELLULAR ONE or, if
applicable, any CPE, AGENT agrees to comply therewith within a reasonable time
after notice thereof by CELLULAR ONE and the sole obligation of CELLULAR ONE in
any such event shall be to reimburse AGENT for the out-of-pocket costs, if any,
of complying with this obligation and to indemnify AGENT as provided in
Paragraph 9 below. In addition, AGENT shall replace obsolete identification
signs or identification material with new signs or identification material
should AGENT adopt new Marks replacing one or more Marks identified by CELLULAR
ONE in such list as hereinbefore specified.

<PAGE>

         9. CELLULAR ONE'S TITLE AND PROTECTION OF CELLULAR ONE'S RIGHTS

         AGENT agrees that it will not during the term of this Agreement, or
thereafter, attack the title or any rights of CELLULAR ONE in and to the Marks.
CELLULAR ONE hereby indemnifies AGENT and undertakes to hold AGENT harmless
against any damages and costs from claims or suits arising out of the use by
AGENT of the Marks as authorized in this Agreement, provided that prompt notice
is given to CELLULAR ONE of any such claim or suit and provided, further, that
CELLULAR ONE shall have the option to undertake and conduct the defense of any
suit so brought and that no settlement of any such claim or suit is to be made
by AGENT without the prior written consent of CELLULAR ONE. AGENT agrees to
assist CELLULAR ONE and CELLULAR ONE agrees to reimburse AGENT for all
associated reasonable costs to the extent necessary in the procurement of any
protection or to protect any of CELLULAR ONE's rights to the Marks, and CELLULAR
ONE, if it so desires, may commence or prosecute any claims or suits in its own
name or in the name of AGENT or join AGENT as a party thereto. When known, AGENT
shall notify CELLULAR ONE in writing of any infringements or imitations by
others of the Marks which are the same as or similar to those covered by this
Agreement. CELLULAR ONE shall have the sole right to determine whether any
action shall be taken on account of any such infringements or imitations. AGENT
shall not institute any suit or take any action on account of any such
infringements or imitations without first obtaining the written consent of
CELLULAR ONE.

         10. RULES AND PROCEDURES

AGENT understands that if AGENT operates its CPE business or represents CELLULAR
ONE's Authorized Services in a manner that is inconsistent with or contrary to
state or federal law or regulation, such action will reflect adversely upon the
name and goodwill of CELLULAR ONE and its Affiliates. Therefore, AGENT agrees to
comply, if applicable, with Part 22 of the FCC rules, and all tariffs, other
governmental rules and procedures in existence relating to the sale of the
Authorized Services and the sale, lease, warranty service and the conduct of
AGENT's CPE business hereunder as well as any rules and procedures relating to
such matters reasonably prescribed from time to time by CELLULAR ONE through the
Administrative Procedures Manual, which rules and procedures shall constitute
provisions hereof as if fully set forth herein. All references herein to the
Agreement shall include all such tariffs, rules and procedures. CELLULAR ONE may
incorporate all such tariffs, rules and procedures in one or more Administrative
Procedures Manuals or other written form, but is not obligated to do so. AGENT
shall itself be responsible to familiarize itself with the laws and regulations
applicable to the conduct of its business.

         11. ADVERTISING AND BUSINESS PRACTICES OF AGENT

         AGENT shall secure and maintain in force all licenses and permits
required by AGENT and its employees in the enrollment of Subscribers and the
sale or lease of CPE, installation and maintenance of CPE, including without

<PAGE>

limitation, all required FCC permits and certifications, if required, and
business and sales tax licenses, and shall conduct its business in full
compliance with all state and federal laws, ordinances and regulations
applicable to AGENT's business. CELLULAR ONE shall sell or resell the Authorized
Services in accordance with applicable rules, regulations, statutes and
decisions governing such Services. AGENT shall promptly pay, when due, all taxes
and assessments against any real or personal property used in connection with
AGENT's business, and all liens or encumbrances or every kind or character
created or placed upon or against any such property, and all accounts and other
indebtedness of every kind incurred by AGENT in the conduct of its business.
AGENT shall comply, at its own expense, with the provisions of all applicable
municipal requirements and those state and federal laws applicable to AGENT as
an employer of labor or otherwise. AGENT expressly agrees not to discriminate
against any employee or applicant for employment because of race, creed, color,
national origin or sex. The provisions of Executive Order No. 11246, as amended,
are incorporated herein by reference. AGENT will fully comply with the
provisions of the Federal Occupational Safety and Health Act of 1970 and with
any rules and regulations issued pursuant to this Act.

         12. ADVERTISING AND BUSINESS PRACTICES OF AGENT

         All advertising and promotion by AGENT shall be completely factual and
shall conform to the highest standards of ethical advertising. AGENT shall
adhere to the highest standards of honesty, integrity, fair dealing and ethical
conduct in all dealings with Subscribers, AGENT and the public. AGENT agrees to
refrain from any business or advertising practice which may be injurious to the
business of CELLULAR ONE and the goodwill associated with the Marks. All
advertising and marketing materials that AGENT desires to use in connection with
the Authorized Services or CPE and which have not been prepared or previously
approved by CELLULAR ONE must be submitted to CELLULAR ONE for approval. AGENT
shall not use any advertising or marketing materials that CELLULAR ONE has
failed to approve. AGENT agrees that it will not begin its advertising and
promotion without CELLULAR ONE's prior written consent. AGENT shall notify
CELLULAR ONE in writing within five (5) days of the commencement of any material
action, suit or proceeding, and of the issuance of any order, writ, injunction,
award or decree of any court, agency of other governmental instrumentality,
involving AGENT, or any business conducted by AGENT on behalf of CELLULAR ONE
hereunder.

         13. AGENT'S BUSINESS RECORDS

         AGENT agrees to create and to maintain at its principal office and
preserve for three (3) years from the date of their preparation, full, complete
and accurate records of its business conducted pursuant to this Agreement. Such
records shall include, without limitation, records of all Authorized Service
enrollments and CPE sales, leases, or rentals.

         14. REPORTS AND FINANCIAL STATEMENTS

         AGENT shall maintain at its principal office for a period of three (3)
years complete and accurate books of account and records, including all
documentation and correspondence related to advertising and publicity,
Subscriber contacts and solicitations, Subscriber applications and contracts,

<PAGE>

Subscriber complaints, use of CELLULAR ONE's name and trademarks, payments to
AGENT, agreements with and payments to third parties in connection with this
Agreement, AGENT's licenses and authorizations, compliance with the requirements
of any governmental agency and all other documents or records in connection with
AGENT's performance of its duties hereunder. CELLULAR ONE shall have the right
to inspect and make copies of AGENT's books of account and records during normal
working hours, upon reasonable notice by CELLULAR ONE. CELLULAR ONE expressly
agrees, and will require its authorized representatives to agree, that it will
keep all such records strictly confidential and that it will not disclose such
information to any other agent or distributor of CELLULAR ONE's Services or to
any other person without AGENT's express prior written consent; provided,
however, CELLULAR ONE may disclose such information if required to do so by any
state or federal regulatory agency.

         15. ASSIGNMENT

         This Agreement is fully assignable by CELLULAR ONE to any affiliated
person or entity and shall inure to the benefit of any assignee or other legal
successor to the interest of CELLULAR ONE herein.

         AGENT acknowledges that CELLULAR ONE has entered into this Agreement in
reliance upon the character, business experience and ability of AGENT and its
owner(s), officers and managers and that neither the rights and duties created
by this Agreement nor a controlling interest in the ownership of AGENT may be
voluntarily, involuntarily, directly or indirectly assigned, or otherwise
transferred (including, without limitation, by transfer of capital stock or
partnership interests, by merger or consolidation, by issuance of additional
securities representing an ownership interest in AGENT or convertible thereto,
or in the event of the death of a shareholder or partner of AGENT, by will, in
declaration of or transfer in trust or the laws of intestate succession) without
the written approval of CELLULAR ONE, which will not be unreasonably withheld,
subject to such conditions as CELLULAR ONE deems reasonably necessary. Any such
assignment or transfer without such approval shall constitute a breach hereof
and convey no rights to or interests herein. Any change in management, personnel
or identity which materially impairs the ability of AGENT to market the
Authorized Services shall also constitute such a breach. "Control" for purposes
hereof is defined in Paragraph 1 above.

         16. TERM AND EXTENSION OF AGENCY RELATIONSHIP

         The term of this Agreement shall commence on the 1st day of October,
1997, and shall end on the 31st day of December, 2002. AGENT shall provide to
CELLULAR ONE written notice of the date on which AGENT initiates operations
under this Agreement in the Area. AGENT agrees that CELLULAR ONE must provide
written consent before AGENT actually initiates business operations. This
Agreement shall be effective only after its execution by an officer or other
authorized employee of both AGENT and CELLULAR ONE.

<PAGE>

         CELLULAR ONE may give AGENT written notice of its determination that
the agency relationship between CELLULAR ONE and AGENT may be extended upon
mutual Agreement, not less than sixty (60) days prior to the expiration hereof,
if CELLULAR ONE determines that it is renewable.

         17. LATE PAYMENTS; SECURITY DEPOSIT

         In the event any amount payable by AGENT to CELLULAR ONE is more than
thirty (30) days overdue, CELLULAR ONE may, at its option, do one or more of the
following: (i) require AGENT to pay its account in full; (ii) apply commissions
and any credits or other amounts payable to AGENT to reduce the AGENT's account
payable balance; or (iii) require AGENT to deposit with CELLULAR ONE an
irrevocable commercial letter of credit, cash or other form of security
acceptable to CELLULAR ONE in its sole discretion to secure future delays or
defaults in payment. This deposit will secure payment of any amounts due under
this Agreement or any other agreement between the parties.

         AGENT understands that in order to purchase CPE from CELLULAR ONE (if
CELLULAR ONE determines that it will sell CPE) other than on a cash on delivery
basis, AGENT may be required to sign Security Agreements, Financing Statements
and related documents.

         18. TERMINATION OF AGREEMENT

         A. By Agent

         If AGENT is in substantial compliance with this Agreement and CELLULAR
ONE materially breaches this Agreement and fails to cure such breach within
thirty (30) days after written notice thereof is delivered to CELLULAR ONE,
AGENT may terminate this Agreement effective thirty (30) days after delivery to
CELLULAR ONE of written notice thereof and AGENT shall not be bound by the
provisions in Paragraph 20, "Covenants Not To Compete." A termination of this
Agreement by AGENT (whether express or reasonably implied from AGENT's acts or
omissions) for any reason other than a material breach hereof by CELLULAR ONE
(coupled with substantial compliance by AGENT), and CELLULAR ONE's failure to
cure such breach within thirty (30) days after receipt of written notice
thereof, shall be deemed a termination by AGENT without cause.

         B. By CELLULAR ONE

         CELLULAR ONE shall have the right to terminate this Agreement effective
upon thirty (30) days written notice should (A) the FCC Cellular Radio Decisions
or other requisite governmental decisions and authorities not be continued in
substantially the same form and such change materially adversely impacts
CELLULAR ONE's (or an affiliate's) ability to conduct its business in the Area;

<PAGE>

(B) state and/or federal regulatory approval empowering CELLULAR ONE or its
Affiliate to construct and provide the Authorized Services and/or CPE in the
Area is not granted to either CELLULAR ONE or an Affiliate, is granted subject
to terms and conditions unacceptable to CELLULAR ONE or an Affiliate, or is
granted under such terms and conditions which, in CELLULAR ONE's opinion,
materially adversely affects the intended purpose of this Agreement; or (C)
regulatory authorization of the commission schedule of this Agreement is made
subject to terms and conditions unacceptable to CELLULAR ONE or Affiliates.

         Further, CELLULAR ONE shall have the right to terminate this Agreement
effective upon written notice if (a) AGENT makes an assignment for the benefit
of creditors; (b) an Order for Relief under Title 11 of the United States Code
is entered by any United States Court against Agent; (c) a trustee or receiver
of any substantial part of the AGENT's assets, is appointed by any Court; (d)
AGENT sells all or substantially all of AGENT's inventory or Assets other than
in the ordinary course of business.

         In addition, CELLULAR ONE shall have the right to terminate this
Agreement for cause effective upon delivery of notice of termination of AGENT,
if AGENT (or one of more of its owners and affiliates): (1) has made any
material misrepresentation or omission in its application to establish an agency
relationship with CELLULAR ONE or is convicted of or pleads no contest to a
felony or other crime or offense that is likely to adversely affect the
reputation of CELLULAR ONE or its affiliated companies or the goodwill of the
Marks; (2) attempts to make an unauthorized assignment of this Agreement; (3)
receives a notice of violation of the terms or conditions of any license or
permit required by AGENT or its employees in the conduct of AGENT's business and
fails to correct such violation, or to terminate the employment of such
employee(s) within the time period specified in such notice, if any, or within
thirty (30) days after receipt of such notice, whichever first expires; (4)
fails to comply with any provision of this Agreement, including, if applicable,
sales of Authorized Services consistent with AGENT forecasts, or any applicable
tariff or CELLULAR ONE procedure relating to the Authorized Services and/or CPE,
and AGENT does not correct such failure within ten (IO) days as to monetary
defaults and within thirty (30) days if non-monetary default after written
notice of such failure to comply is delivered to AGENT.

         19. OBLIGATIONS OF AGENT UPON TERMINATION OR EXPIRATION

         AGENT agrees that upon the expiration or termination of this Agreement
in the Area, AGENT and its owner(s) and Affiliates will: (1) not thereafter use
any actual or similar Marks, or any actual or similar trade name, service mark,
trademark, logo, insignia, symbols or decorative design theretofore used by
AGENT specifically in its sale of the Authorized Services, in any manner or for
any purpose in the Area except that AGENT and its owner(s) may use or continue
to use any trade name, service mark, logo, insignia, symbols or decorative
designs AGENT or its owner(s) used in any business prior to the date of this
Agreement; and will not utilize for any purpose any actual or similar trade
name, trade or service mark or other commercial symbol that suggests or
indicates a connection or association with CELLULAR ONE or any affiliated
company of CELLULAR ONE, or directly or indirectly, at any time or in any manner
identify itself or any business associated with CELLULAR ONE or such affiliated
company in the Area; (2) return to CELLULAR ONE all advertising and marketing

<PAGE>

materials, forms, and other materials containing any Mark or otherwise
identifying or relating to CELLULAR ONE's Authorized Services in the Area; (3)
take such action as may be required to cancel all fictitious or assumed name or
equivalent registrations relating to any Mark or authorize CELLULAR ONE, and any
officer of CELLULAR ONE, as AGENT's attorney in fact, to take such actions as
may be required to cancel such fictitious or assumed name or equivalent
registration; if AGENT fails or refuses to do so, all governmental agencies
administering fictitious or assumed name or equivalent registrations may accept
and rely upon appropriate documents executed by CELLULAR ONE or its officer
canceling any such registration; and (4) provide CELLULAR ONE with an updated
list of names, addresses and all other relevant information AGENT then possesses
concerning Subscribers of all Authorized Services that AGENT has enrolled in the
Area.

         20. COVENANTS NOT TO COMPETE

         In consideration of CELLULAR ONE's grant to AGENT of the right to use
the Marks, the right to advertise affiliation with CELLULAR ONE as an authorized
agent of CELLULAR ONE and the great value of the goodwill associated with
AGENT's ability to use the Marks, which rights and value are not available to
distributors generally, and in recognition of the value of specialized,
technical knowledge of the cellular industry and other Services to be imparted
by CELLULAR ONE to AGENT from time to time, AGENT agrees to be bound by the
covenants in this Paragraph 20. Such rights and value shall constitute
independent consideration for the covenants in this Paragraph 20.

         Therefore, for value received as identified above, AGENT agrees that
AGENT, its officers, directors, key employees, and principals, any Affiliate or
the person or persons owning a controlling interest in AGENT or an Affiliate,
during the term of this Agreement and for a period of one (1) year following the
later of the expiration or termination of this Agreement, shall not

         (1) directly or indirectly, induce, influence or suggest to any
Subscriber of CELLULAR ONE's CRS to purchase CRS or any other CMRS from another
reseller or provider of CRS or CMRS in the Area;

         (2) directly or indirectly, induce, influence or suggest to any
Subscriber of any other Authorized Service to purchase a competing service from
any other provider or reseller of such competing service in the Area, whether or
not the competing service is technologically the same as the Authorized Service
in question;

         (3) under any circumstances or conditions whatsoever, directly or
indirectly, as an individual, partner, stockholder, director, officer, employee,
manager or in any other relation or capacity whatsoever engage in the sale or
promotion of CRS, CMRS, or any other Authorized Service on behalf of any
competing reseller or provider of such service in the Area;

         (4) directly or indirectly, allow any other person, firm or other
entity to use the name, trade name, goodwill or any other assets or property of
AGENT or CELLULAR ONE in any manner in connection with such other entity's sale

<PAGE>

of CRS, CMRS or any other Authorized Service on behalf of a competing reseller
or provider in the Area, and AGENT specifically agrees not to transfer, assign,
authorize or consent to the transfer of an AGENT telephone number to any other
person, firm or other entity upon the expiration or termination of this
Agreement.

         Notwithstanding any language to the contrary, the restrictive covenants
contained herein shall not operate so as to restrict AGENT from the businesses
of providing or selling Paging Services.

         21. SEVERABILITY AND SUBSTITUTION OF VALID PROVISIONS

  Except as expressly provided to the contrary herein, each term and condition
of this Agreement, and any portion thereof, shall be considered severable and
if, for any reason, any such provision hereof is held to be invalid, contrary
to, or in conflict with any applicable present or future law, regulation or
public policy in a final, unappealable ruling issued by any court, agency or
tribunal with competent jurisdiction in a proceeding to which CELLULAR ONE or
its Affiliate is a party, that ruling shall not impair the operation of, or have
any other effect upon, such other portions of this Agreement as may remain
otherwise enforceable which shall continue to be given full force and effect and
bind the parties hereto, although any portion held to be invalid shall be deemed
not to be a part of this Agreement from the date the time for appeal expires, if
AGENT is a party thereto, otherwise upon AGENT's receipt of a notice of
nonenforcement thereof from CELLULAR ONE.

         To the extent that Paragraphs 4 or 20 contain or impose a restriction
upon AGENT that is deemed unenforceable by virtue of its scope in terms of area,
business activity prohibited and/or length of time, but could be enforceable by
reducing any or all thereof, AGENT and CELLULAR ONE agree that same shall be
enforced to the fullest extent permissible under the laws and public policies
applied in the jurisdiction in which enforcement is sought. CELLULAR ONE and
AGENT shall mutually agree to a modification of any invalid or unenforceable
term or condition hereof to the extent required to be valid and enforceable.
Such modifications to this Agreement shall be required only in the area directly
affected by any such ruling.

         22. WAIVER OF OBLLGATIONS

         CELLULAR ONE and AGENT may by written instrument unilaterally waive or
reduce any obligation of or restriction upon the other under this Agreement,
effective upon delivery of written notice thereof to the other or such other
effective date stated in the notice of waiver.

         Whenever this Agreement requires the consent of a Party, such request
shall be in writing and no consent may be unreasonably withheld. All consents or
withholding of consent with reasons therefore shall be in writing. Neither party
makes any guarantees upon which the other may rely, and assumes no liability or
obligation to the other, by granting any waiver, approval or consent to the
other, or by reason of any neglect, delay or denial of any request therefor. Any
waiver granted by either Party shall be without prejudice to any other right
that Party may have, will be subject to continuing review, and may be revoked,
at the waiving party's sole discretion, at any time and for any reason,
effective upon delivery to the other of ten (10) days' prior written notice.

<PAGE>

         CELLULAR ONE and AGENT shall not be deemed to have waived or impaired
any right, power or option reserved by this Agreement (including, without
limitation, the right to demand exact compliance with every term, condition and
covenant herein, or to declare any breach hereof to be a default and to
terminate this Agreement prior to the expiration of its term), by virtue of any
custom or practice of the parties at variance with the terms hereof, or any
failure, refusal or neglect of CELLULAR ONE or AGENT to exercise any right under
this Agreement or to insist upon exact compliance by the other with its
obligations hereunder, including without limitation any rule or procedure, or
any waiver, forbearance, delay, failure or omission by CELLULAR ONE to exercise
any right, power or option, whether of the same, similar or different nature,
with respect to one or more other authorized agents or other forms of
distribution.

         23. RIGHTS ARE CUMULATIVE

  The rights of CELLULAR ONE and AGENT hereunder are cumulative and no exercise
or enforcement by CELLULAR ONE and AGENT of any right or remedy hereunder shall
preclude the exercise or enforcement by CELLULAR ONE or AGENT of any other right
or remedy hereunder or which CELLULAR ONE or AGENT is entitled by law to
enforce,

         24. GOVERNING LAW

         Except to the extent governed by United States law that preempts state
law, this Agreement shall be interpreted under and governed by the laws of the
State of Illinois. If any suit or action shall be brought to enforce or declare
any of the terms of this Agreement, to terminate this Agreement or to recover
any damages sustained as a result of a default in the performance of any
obligations under this Agreement, or a breach of any of the representations and
warranties herein contained or otherwise pursuant to this Agreement, then except
as otherwise provided in Paragraph 35, the party not prevailing in such suit or
action shall be liable to the prevailing party for the prevailing party's costs
and expenses, including, without limitation, court costs and reasonable
attorneys' and expert witnesses' fees (including, without limitation, the value
of time spent by in-house personnel), the amount of which shall be fixed by the
court and shall be made a part of any judgment rendered. The parties agree that
any such suit or action must be brought, if at all, within one (1) year after
the underlying cause of action accrues.

         25. TESTIMONY

         Matters relating to this Agreement may be an issue before various
regulatory bodies. Upon reasonable notice AGENT agrees to fully cooperate with
CELLULAR ONE regarding any such matters including willingly providing employees
of AGENT to testify at appropriate times regarding any aspect of this Agreement
or other related issues. CELLULAR ONE agrees to reimburse AGENT for reasonable
costs expended in supplying such testimony.

<PAGE>

         26. BINDING EFFECT

         This Agreement is binding upon the parties hereto, their respective
executors, administrators, heirs, assigns and successors in interest.

         All obligations by either party which expressly or by their nature
survive the expiration or termination of this Agreement shall continue in full
force and effect subsequent to and notwithstanding its expiration or termination
and until they are satisfied in full or by their nature.

         27. IMPOSSIBILITY OF PERFORMANCE

         Neither CELLULAR ONE nor AGENT shall be liable for loss or damage or
deemed to be in breach of this Agreement if its failure to perform its
obligations results from: (1) compliance with any law, ruling, order,
regulation, requirement or instruction of any federal, state or municipal
government or any department or agency thereof or court of competent
jurisdiction; (2) acts of God; (3) acts or omissions of the other party; and (4)
fires, strikes, embargoes, war, insurrection or riot. Any delay resulting from
any of said causes shall extend performance accordingly or excuse performance,
in whole or in part, as may be reasonable.

         28. INTERPRETATION

         The preambles and exhibits to this Agreement are a part of this
Agreement, which constitutes the entire agreement of the parties, and there are
no other oral or written understandings or agreements between CELLULAR ONE and
AGENT relating to the subject matter hereof. This Agreement supersedes any prior
agreements or understandings between the parties relating to the subject matter
hereof.

         Nothing in this Agreement is intended, nor shall be deemed, to confer
any rights or remedies upon any person or legal entity not a party hereto,
except for those affiliates of CELLULAR ONE as may be involved in the provision
of one or more of the Authorized Services.

         The headings of the several paragraphs hereof are for convenience only
and do not define, limit or construe the contents of such paragraphs.

         The term "AGENT" as used herein is applicable to one or more persons, a
corporation or a partnership, as the case may be, and the singular usage
includes the plural and the masculine includes the feminine.

         If two or more persons are at any time AGENT hereunder, whether or not
as partners or joint venturers, their obligations and liabilities to CELLULAR
ONE shall be joint and several.

         This Agreement shall be executed in multiple copies, each of which
shall be deemed an original.

<PAGE>

         29. INDEMNITY

         Subject to the provisions of Paragraph 3, each party hereto agrees to
defend, indemnify and save harmless the other party and its successors and
assigns and its employees and agents and their heirs, legal representatives and
assigns from any and all claims or demands whatsoever, including the costs,
expenses and reasonable attorney's fees incurred on account thereof, that may be
made (1) by the indemnifying Party's employees or any other persons for bodily
injury or damage to property occasioned by the acts or omissions of the Party of
its subcontractor, or the employees or agents of any of them, and (2) by the
Party's employees under worker's compensation or similar acts.

         Further, AGENT agrees to indemnify, hold harmless and, upon CELLULAR
ONE's written request, defend CELLULAR ONE (including its officers, directors
and employees) from and against any and all liability, loss, damages, costs,
attorneys' fees, or other expense of any kind, that arises out of any threatened
or actual claim or any suit for damages, injunction, or other relief on account
of (a) injury to or death of any person, (b) damage to any property, (c) public
charges and penalties, or (d) any demand, liability or lien, whether caused by,
resulting from, or in connection with, the negligent or intentional acts,
omissions or misrepresentations of AGENT (including any of its subordinates,
sub-agents, employees or servants), solely or jointly with others, including
CELLULAR ONE, its employees or servants (except for the negligent acts or
omissions solely of CELLULAR ONE or any of its employees or servants) in the
performance of or in connection with the performance of AGENT's responsibilities
under this Agreement.

         30. SURVIVAL

  The terms, provisions, representations, and warranties contained in this
Agreement that by their sense and context are intended to survive the
performance thereof by either or both parties hereunder shall so survive the
completion of performances and termination of this Agreement, including the
making of any and all payments due hereunder.

         31. LICENSES

         No licenses, express or implied, under any patents or copyrights are
granted by CELLULAR ONE or its Affiliates to AGENT.

         32. NOTICES AND PAYMENTS

         All payments due AGENT shall be made to such address or bank as AGENT
from time to time designates. All notices and reports required to be delivered
by the provisions of the Agreement shall be deemed so delivered three (3)
business days after placement in the United States Certified or Registered Mail,
postage prepaid and addressed to the party to be notified at its most current
principal business address of which the notifying party has been notified. All
reports and other information required by this Agreement shall be directed to
CELLULAR ONE at the data processing center or the address provided to AGENT from
time to time, or to such other persons and places as CELLULAR ONE may direct
from time to time. Any required report not actually received or postmarked by
CELLULAR ONE or AGENT during regular business hours on the date due, shall be
deemed delinquent.

<PAGE>

         33. CONFIDENTIAL INFORMATION

         Any specifications, drawings, sketches, models, samples, data, computer
programs or documentation, or technical or business information ("Information")
furnished or disclosed by CELLULAR ONE to AGENT hereunder shall be deemed the
exclusive property of CELLULAR ONE, including title to copyright in all
copyrightable material, and, when in tangible form, shall be returned to
CELLULAR ONE upon completion or termination of authorized work. Unless such
information was previously known to AGENT free of any obligation to keep it
confidential, or has been or is subsequently made public by CELLULAR ONE or a
third party, it shall be held in confidence by AGENT, shall be used only for the
purposes hereunder, and may be used for other purposes only upon such terms and
conditions as may be mutually agreed upon in writing. In addition, the parties
hereby agree that Subscriber lists and related information or data are the
exclusive property of CELLULAR ONE and are to be used by AGENT solely in the
performance of its obligations and duties as described herein and are to be
returned to CELLULAR ONE upon the termination of this Agreement.

         If AGENT is served with process to obtain Information, AGENT shall
immediately notify CELLULAR ONE which shall, in addition to AGENT efforts, if
any, have the right to seek to quash such process.

         Unless marked "proprietary," any Information furnished or disclosed by
AGENT to CELLULAR ONE shall not obligate CELLULAR ONE to hold such information
in confidence.

         34. COVENANT NOT TO SOLICIT EMPLOYMENT

         Agent recognizes and agrees that it takes a great deal of time to hire
and train employees for its business. AGENT fully understands the time and
expense CELLULAR ONE incurs to obtain qualified personnel, and AGENT therefore
agrees not to offer employment to or accept to hire any of CELLULAR ONE's
employees. This Paragraph 34 cannot be waived except by the President and Chief
Executive Officer of CELLULAR ONE in writing. In the event AGENT, or any
affiliate or person associated with AGENT, does hire any of CELLULAR ONE's
employees during the term of this Agreement, or during any renewal or option
period, or hires such employees during a period of 90 days after any such
employee leaves the employment of CELLULAR ONE, such hiring also will constitute
a material breach of this Agreement.

         Moreover, CELLULAR ONE and AGENT have considered the matter and have
reasonably endeavored to estimate the actual damages to CELLULAR ONE in the
event AGENT breaches this Agreement and offers or accepts to hire any of
CELLULAR ONE's employees, and both realize that it would be impractical or
extremely difficult to fix the actual damages to CELLULAR ONE resulting from
such offer or hiring of CELLULAR ONE's employees. CELLULAR ONE and AGENT
therefore agree that if AGENT offers or accepts to hire any of CELLULAR ONE's
employees during the periods of time heretofore mentioned, AGENT agrees to

<PAGE>

reimburse CELLULAR ONE for its costs in replacing each such employee, which
costs shall be deemed to be one year's salary or wages of each such employee.
Said sum represents the amount agreed upon by the parties as CELLULAR ONE's
liquidated damages for such breach and shall be in addition to CELLULAR ONE's
right to terminate this Agreement for such breach.

         35. DISPUTE RESOLUTION AND MEDIATION

         For all disputes relating to this Agreement except those relating to
Paragraph 20, Covenants Not to Compete, prior to instituting litigation in
connection with this Agreement in any forum, including but not limited to,
state, federal, or regulatory proceedings, each party agrees to the following
procedures:

         (a) The aggrieved party shall give detailed written notice to the other
party of its specific complaint, including the amount of actual damages and
expenses, including attorney's fees, claimed by the aggrieved party. The
aggrieved party shall include copies of all documents that support its claims.
Within thirty (30) days after receipt of the notice, the party receiving the
notice shall tender to the aggrieved party a written offer of settlement. Any
offer of settlement not accepted within thirty (30) days of receipt by the
aggrieved party shall be deemed to have been rejected.

         (b) In the event of litigation, a settlement offer made pursuant to
Paragraph 35(a) above, if rejected by the aggrieved party, may be filed with the
court together with an affidavit certifying its rejection. If the court finds
that the amount tendered in the settlement offer is greater than or equal to the
actual damages found by the trier of fact, the aggrieved party shall incur the
costs of its own attorney's fees and shall reimburse the other party for its
reasonable attorneys' fees incurred. If recovery is more that the amount
tendered in the settlement offer, then the accused party will reimburse the
aggrieved party for its reasonable attorneys' fees.

         (c) The tender of an offer of settlement is not an admission of
engaging in an unlawful act or practice or of liability. Evidence of a
settlement offer may be used only for the purposes specified in Paragraph 35(b)
above, and is not to be revealed to the trier of fact as part of its
determination of damages or liability.

         (d) If the parties are unable to settle their disputes through the
above procedure, the parties agree to submit their dispute to mediation as
described in this paragraph within 90 days after rejection of the settlement
offer. Compliance with these procedures on dispute resolution and mediation
shall be a condition precedent to instituting any judicial, quasi-judicial
and/or regulatory proceeding.

         (i) Mediation is a process under which an impartial mediator
facilitates communication between the parties to promote settlement between
them. The mediator does not have the authority to decide any issue for the
parties, but will attempt to facilitate the voluntary resolution of the dispute
by the parties. The mediator is authorized to conduct joint and separate
meetings with the parties and to offer suggestions to assist the parties to
achieve settlement.

<PAGE>

         (ii) The parties shall agree to selection of an impartial mediator. A
person shall not serve as a mediator in any dispute in which he has any
financial or personal interest. Prior to accepting an appointment, the mediator
shall disclose any circumstance likely to create a presumption or appearance of
bias or prevent a prompt meeting with the parties. The aggrieved party shall
have the right to name a mediator, subject to disagreement from the other party
based on the mediator's interest in a dispute, affiliation or connection to the
aggrieved party or other circumstance likely to create a presumption or
appearance of bias. The parties shall each bear half the cost of the mediation.

         (iii) The parties, while not committing in advance to settle their
case, agree to participate in mediation in good faith with the intention to
settle, if at all possible.

         36. AUTHORITY

         Each of the par-ties represents, warrants and agrees that it is a
corporation, limited liability company, or partnership duly organized, validly
existing and in good standing under the laws of the state of its formation, and
has all requisite power and authority to execute and deliver this Agreement and
to consummate the transactions contemplated hereby; that the execution and
delivery of this Agreement and the performance hereof have been duly and validly
authorized by all necessary corporate or partnership action; and that the
execution and delivery by it of this Agreement and the performance of this
Agreement by it will not conflict with or result in a breach of or constitute or
result in a default under any of the ten-ns, conditions or provisions of the
Articles or Certificates of Incorporation, By-Laws, or other of its governing
instruments or any judgment, order, decree, law, regulation or ruling of any
court or governmental authority or any agreement, contract, commitment or other
instrument to which it is a party or by which it is bound.

         Specifically, AGENT represents and warrants that (i) AGENT is not a
party to any agreement to distribute, promote or otherwise sell CRS, CMRS or any
other Authorized Service (except Paging Services) on behalf of any competing
provider, reseller or agent in the Area; (ii) the execution and delivery by it
of this Agreement and the performance of this Agreement by it will not conflict
with or result in a breach or constitute or result in a default under any of the
terms, conditions or provisions of any agreement between AGENT and any other
carrier, reseller or agent of CRS, CMRS or any other Authorized Service.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first above written and hereby declare that they HAVE READ AND DO
UNDERSTAND EACH AND EVERY TERM, CONDITION AND COVENANT CONTAINED IN, OR
INCORPORATED BY REFERENCE INTO, THIS AGREEMENT.

SOUTHWESTERN BELL MOBILE                    AREAWIDE CELLULAR, INC.
SYSTEMS, INC.,
d/b/a CELLULAR ONE - CHICAGO

                                            By: /s/ Lance Chody
                                                --------------------------------
                                                    Lance Chody
                                                    Vice President
By: /s/ Stan Sigman
    ------------------------------
        Stan Sigman
        President and CEO

<PAGE>

                                    EXHIBIT A

AUTHORIZED-AGENT-LOCATIONS

Initial locations at which AGENT is authorized to operate as described in this
Agreement:

        It is agreed by AGENT and CELLULAR ONE that if the initial business
location(s) and/or the date upon which CRS operations of AGENT will commence are
not known at the date of execution of this Agreement, the same may be added from
time to time as such information becomes known but no later than the effective
date of AGENT operations.

        AGENT shall not change or add business locations without CELLULAR ONE's
prior written approval. AGENT shall consult with CELLULAR ONE before initiating
any action to change or supplement any of its business locations.

        Any business locations that AGENT opens and operates in the Area shall
be subject to all of the terms of the Agreement, whether or not an amendment is
signed by the parties adding the addresses of any new or different locations.

Authorized Locations:

See Attached List

Counties in which AGENT is authorized:

Cook, Lake, DuPage, Kane, McHenry, Will

AUTHORIZED SERVICES

CRS (including long distance/toll service, if any, provided by CELLULAR ONE to
its CRS subscribers)

<PAGE>

5 South Route 59                          Aurora                 IL    60504
11 South Lake Street                      Aurora                 IL    60506
803 South Route 59                        Bartlett               IL    60103
161 North Clark Street                    Chicago                IL    60601
3611 North Western Avenue                 Chicago                IL    60618
10 South LaSalle Street                   Chicago                IL    60603
2320 North Damen Avenue                   Chicaqo                IL    60647
1001 West North Avenue                    Chicago                IL    60622
1454 East 53rd Street                     Chicaqo                IL    60615
6301 South Cicero                         Chicaqo                IL    60629
4630 South Damen Avenue                   Chicago                IL    60609
3125 South Ashland Avenue                 Chicaqo                IL    60608
3180 North Broadway                       Chicaqo                IL    60657
93 East Three Oaks Road, Suite H          Crystal Lake           IL    60014
2950 Finley Road                          Downers Grove          IL    60515
362 North LaGrange Road                   Frankfort              IL    60423
67 East North Avenue                      Glendale Heights       IL    60139
4832 North Harlem Avenue                  Harwood Heights        IL    60656
1045 South LaGrange Road                  LaGrange               IL    60525
744 South Rand Road                       Lake Zurich            IL    60047
620 East North Avenue                     Lombard                IL    60148
1032 East Oqden Avenue                    Naperville             IL    60563

<PAGE>

8357 West Golf Road                       Niles                  IL    60714
2312 South Harlem                         North Riverside        IL    60546
21 1 00 South Western Avenue              Olympia Fields         IL    60461
1025 East Golf Road                       Schaumburg             IL    60173
615 South Randall Road                    St. Charles            IL    60174
16651 South Harlem Avenue                 Tinley Park            IL    60477
116 Old McHenry Road                      Wheeling               IL    60090

<PAGE>

                                    EXHIBIT B

                                    SUBAGENTS

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