Document:

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                                                                    EXHIBIT 10.1

                                  PFSWEB, INC.

                              3,100,000 SHARES(1)

                                  COMMON STOCK

                             UNDERWRITING AGREEMENT

                                                                December 1, 1999

HAMBRECHT & QUIST LLC
Dain Rauscher Wessels, a division of Dain Rauscher Incorporated
Jefferies & Company, Inc.
  c/o Hambrecht & Quist LLC
  One Bush Street
  San Francisco, CA 94104

Ladies and Gentlemen:

         PFSweb, Inc., a Delaware corporation (herein called the Company),
proposes to issue and sell 3,100,000 shares of its authorized but unissued
Common Stock, $0.001 par value (herein called the Common Stock) (said 3,100,000
shares of Common Stock being herein called the Underwritten Stock). The Company
proposes to grant to the Underwriters (as hereinafter defined) an option to
purchase up to 465,000 additional shares of Common Stock (herein called the
Option Stock and with the Underwritten Stock herein collectively called the
Stock). The Common Stock is more fully described in the Registration Statement
and the Prospectus hereinafter mentioned.

         The Company hereby confirms the agreements made with respect to the
purchase of the Stock by the several underwriters, for whom you are acting,
named in Schedule I hereto (herein collectively called the Underwriters, which
term shall also include any underwriter purchasing Stock pursuant to Section
3(b) hereof). You represent and warrant that you have been authorized by each of
the other Underwriters to enter into this Agreement on its behalf and to act for
it in the manner herein provided.

         As part of the offering contemplated by this Agreement, Hambrecht &
Quist LLC has agreed to reserve out of the Stock set forth opposite its name on
Schedule I to this Agreement, up to 217,000 shares, for sale to the Company's
employees, officers, directors and associates (collectively, "Participants"), as
set forth in the Prospectus under the heading "Underwriting"

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(1) Plus an option to purchase from the Company up to 465,000 additional shares
    to cover over-allotments.

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(the "Directed Share Program"). The Stock to be sold by Hambrecht & Quist LLC
pursuant to the Directed Share Program (the "Directed Shares") will be sold by
Hambrecht & Quist LLC pursuant to this Agreement at the public offering price.
Any Directed Shares not orally confirmed for purchase by any Participants by the
end of the first business day after the date on which this Agreement is executed
will be offered to the public by Hambrecht & Quist LLC as set forth in the
Prospectus.

         1. REGISTRATION STATEMENT. The Company has filed with the Securities
and Exchange Commission (herein called the Commission) a registration statement
on Form S-1 (No. 333-87657), including the related preliminary prospectus, for
the registration under the Securities Act of 1933, as amended (herein called the
Securities Act) of the Stock. Copies of such registration statement and of each
amendment thereto, if any, including the related preliminary prospectus (meeting
the requirements of Rule 430A of the rules and regulations of the Commission)
heretofore filed by the Company with the Commission have been delivered to you.

         The term Registration Statement as used in this agreement shall mean
such registration statement, including all exhibits and financial statements,
all information omitted therefrom in reliance upon Rule 430A and contained in
the Prospectus referred to below, in the form in which it became effective, and
any registration statement filed pursuant to Rule 462(b) of the rules and
regulations of the Commission with respect to the Stock (herein called a Rule
462(b) registration statement), and, in the event of any amendment thereto after
the effective date of such registration statement (herein called the Effective
Date), shall also mean (from and after the effectiveness of such amendment) such
registration statement as so amended (including any Rule 462(b) registration
statement). The term Prospectus as used in this Agreement shall mean the
prospectus relating to the Stock first filed with the Commission pursuant to
Rule 424(b) and Rule 430A (or if no such filing is required, as included in the
Registration Statement) and, in the event of any supplement or amendment to such
prospectus after the Effective Date, shall also mean (from and after the filing
with the Commission of such supplement or the effectiveness of such amendment)
such prospectus as so supplemented or amended. The term Preliminary Prospectus
as used in this Agreement shall mean each preliminary prospectus included in
such registration statement prior to the time it becomes effective.

         The Company has caused to be delivered to you copies of each
Preliminary Prospectus and has consented to the use of such copies for the
purposes permitted by the Securities Act.

         2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND DAISYTEK.

         (a) Each of the Company and Daisytek International Corporation, a
Delaware Corporation and parent of the Company ("Daisytek"), hereby jointly and
severally represents and warrants as follows:

                  (i) Each of the Company and its subsidiaries has been duly
         incorporated and is validly existing as a corporation in good standing
         under the laws of the jurisdiction of its incorporation, has full
         corporate power and authority to own or lease its properties and
         conduct its business as described in the Registration Statement and the
         Prospectus and as

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         being conducted, and is duly qualified as a foreign corporation and in
         good standing in all jurisdictions in which the character of the
         property owned or leased or the nature of the business transacted by it
         makes qualification necessary (except where the failure to be so
         qualified would not have a material adverse effect on the business,
         properties, financial condition or results of operations of the Company
         and its subsidiaries, taken as a whole). Daisytek has been duly
         incorporated and is validly existing as a corporation in good standing
         under the laws of the jurisdiction of its incorporation.

                  (ii) Since the respective dates as of which information is
         given in the Registration Statement and the Prospectus, there has not
         been any materially adverse change in the business, properties,
         financial condition or results of operations of the Company and its
         subsidiaries, taken as a whole, whether or not arising from
         transactions in the ordinary course of business, other than as set
         forth in the Registration Statement and the Prospectus, and since such
         dates, except in the ordinary course of business, neither the Company
         nor any of its subsidiaries has entered into any material transaction
         not referred to in the Registration Statement and the Prospectus.

                  (iii) The Registration Statement has been declared effective
         under the Securities Act, no post-effective amendment to the
         Registration Statement has been filed as of the date of this Agreement
         and no stop order suspending the effectiveness of the Registration
         Statement or suspending or preventing the use of the Prospectus is in
         effect and no proceedings for that purpose have been instituted or are
         pending or contemplated by the Commission.

                  (iv) The Registration Statement and the Prospectus comply, and
         on the Closing Date (as hereinafter defined) and any later date on
         which Option Stock is to be purchased, the Prospectus will comply, in
         all material respects, with the provisions of the Securities Act and
         the rules and regulations of the Commission thereunder; on the
         Effective Date, the Registration Statement did not contain any untrue
         statement of a material fact and did not omit to state any material
         fact required to be stated therein or necessary in order to make the
         statements therein not misleading; and, on the Effective Date the
         Prospectus did not and, on the Closing Date and any later date on which
         Option Stock is to be purchased, will not contain any untrue statement
         of a material fact or omit to state any material fact necessary in
         order to make the statements therein, in the light of the circumstances
         under which they were made, not misleading; provided, however, that
         none of the representations and warranties in this subparagraph (iv)
         shall apply to statements in, or omissions from, the Registration
         Statement or the Prospectus made in reliance upon and in conformity
         with information herein or otherwise furnished in writing to the
         Company by or on behalf of the Underwriters for use in the Registration
         Statement or the Prospectus.

                  (v) The authorized capital stock of the Company consists of
         1,000,000 shares of Preferred Stock, $1.00 par value, of which no
         shares are outstanding, and 40,000,000 shares of Common Stock, $0.001
         par value, of which there are outstanding 17,405,000 shares (including
         the Underwritten Stock plus the number of shares of Option Stock issued
         on the date hereof) and such authorized capital stock conforms as to
         legal matters

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         to the description thereof contained in the Prospectus; proper
         corporate proceedings have been taken validly to authorize such
         authorized capital stock; all of the outstanding shares of such capital
         stock (including the Underwritten Stock and the shares of Option Stock
         issued, if any) have been duly and validly issued and are fully paid
         and nonassessable; any Option Stock purchased after the Closing Date,
         when issued and delivered to and paid for by the Underwriters as
         provided in this Agreement, will have been duly and validly issued and
         be fully paid and nonassessable; and no preemptive rights of, or rights
         of refusal in favor of, stockholders exist with respect to the Stock,
         or the issue and sale thereof, pursuant to the Certificate of
         Incorporation or Bylaws of the Company and there are no contractual
         preemptive rights that have not been waived, rights of first refusal or
         right of co-sale which exist with respect to the issue and sale of the
         Stock. All the issued and outstanding capital stock of each of the
         subsidiaries of the Company has been duly authorized and validly issued
         and is fully paid and nonassessable, and is owned by the Company free
         and clear of all liens, encumbrances and security interests, and no
         options, warrants or other rights to purchase, agreements or other
         obligations to issue or other rights to convert any obligations into
         shares of capital stock or ownership interests in such subsidiaries are
         outstanding.

                  (vi) The Stock to be issued and sold by the Company is
         authorized for listing by the Nasdaq National Market.

                  (vii) The Company is not, and upon receipt and pending
         application of the net proceeds from the sale of the Stock to be sold
         by the Company in the manner described in the Prospectus will not be,
         an "investment company" or a company "controlled" by an "investment
         company" within the meaning of the Investment Company Act of 1940, as
         amended, and the rules and regulations thereunder.

                  (viii) Each of the Master Separation Agreement, the Initial
         Public Offering and Distribution Agreement, the Registration Rights
         Agreement, the Tax Indemnification and Allocation Agreement, the
         Transition Services Agreement, the Transaction Management Services
         Agreement (collectively, the "Spin-off Agreements") and this Agreement
         has been duly authorized, executed and delivered by the parties thereto
         and each of the Spin-off Agreements is a valid and binding agreement of
         such parties enforceable in accordance with its terms.

                  (ix) (1) This Agreement and the issue and sale by the Company
         of the shares of Stock sold by the Company as contemplated herein and
         (2) the Spin-off Agreements and the transactions contemplated therein,
         in each case, do not and will not conflict with, or result in a breach
         of, the Certificate of Incorporation or Bylaws of Daisytek, the Company
         or any of their subsidiaries, or any agreement or instrument to which
         Daisytek, the Company or any of their subsidiaries is a party or by
         which any of the properties or assets of Daisytek, the Company or any
         of their subsidiaries may be bound or affected, or any applicable law
         or regulation, or any order, writ, injunction or decree, of any
         jurisdiction, court or governmental instrumentality.

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                  (x) No consent, approval, authorization or order of any court
         or governmental agency or body is required for the consummation of the
         transactions contemplated in this Agreement, except such as have been
         obtained under the Securities Act and such as may be required under
         state securities or blue sky laws in connection with the purchase and
         distribution of the Stock by the Underwriters, or for the consummation
         of the transactions contemplated in the Spin-off Agreements.

                  (xi) The Company's pro forma combined financial statements and
         notes forming part of the Registration Statement and the Prospectus (i)
         were derived from historical financial statements appearing in the
         Registration Statement and the Prospectus and (ii) are based on
         assumptions that provide a reasonable basis for presenting the
         significant effects of the transactions and events as described in the
         Registration Statement and the Prospectus, the related pro forma
         adjustments give appropriate effect to such assumptions; and the pro
         forma columns reflect the proper allocation of such adjustments to the
         historical financial statements.

                  (xii) The Company has not offered, or caused the Underwriters
         to offer, Stock to any person pursuant to the Directed Share Program
         with the specific intent to unlawfully influence (i) a customer or
         supplier of the Company to alter the customer's or supplier's level or
         type of business with the Company or (ii) a trade journalist or
         publication to write or publish favorable information about the Company
         or its business. The Registration Statement, the Prospectus and any
         Preliminary Prospectus comply, and any further amendments or
         supplements thereto will comply, with any applicable laws or
         regulations of foreign jurisdictions in which the Prospectus or any
         Preliminary Prospectus, as amended or supplemented, if applicable, are
         distributed in connection with the Directed Share Program, and no
         authorization, approval, consent, license, order, registration or
         qualification of or with any government, governmental instrumentality
         or court other than such as have been obtained, is necessary under the
         securities laws and regulations of foreign jurisdictions in which the
         Directed Shares are offered outside the United States.

                  (xiii) The information required to be set forth in the
         Registration Statement in answer to Items 9, 10 and 11(c) of Form S-1
         is accurately and adequately set forth therein in all material respects
         or no response is required with respect to such Items, and the
         description of the Company's stock option plans and the options granted
         and which may be granted thereunder set forth in the Prospectus
         accurately and fairly presents the information required to be shown
         with respect to said plans and options to the extent required by the
         Securities Act and the rules and regulations of the Commission
         thereunder.

                  (xiv) There are no franchises, contracts, leases, documents or
         legal proceedings, pending or threatened, which are of a character
         required to be described in the Registration Statement or the
         Prospectus or to be filed as exhibits to the Registration Statement,
         which are not described and filed as required.

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                  (xv) There are no holders of securities of the Company having
         rights to the registration of shares of Common Stock, or other
         securities, because of the filing of the Registration Statement by the
         Company, that have not waived such rights, or such rights have expired
         by reason of lapse of time following notification of the Company's
         intent to file the Registration Statement.

         3. PURCHASE OF THE STOCK BY THE UNDERWRITERS.

         (a) On the basis of the representations and warranties and subject to
the terms and conditions herein set forth, the Company agrees to issue and sell
3,100,000 of the Underwritten Stock to the several Underwriters and each of the
Underwriters agrees to purchase from the Company the respective aggregate number
of shares of Underwritten Stock set forth opposite its name in Schedule I. The
price at which such shares of Underwritten Stock shall be sold by the Company
and purchased by the several Underwriters shall be $17.00 per share. In making
this Agreement, each Underwriter is contracting severally and not jointly;
except as provided in paragraphs (b) and (c) of this Section 3, the agreement of
each Underwriter is to purchase only the respective number of shares of the
Underwritten Stock specified in Schedule I.

         (b) If for any reason one or more of the Underwriters shall fail or
refuse (otherwise than for a reason sufficient to justify the termination of
this Agreement under the provisions of Section 8 or 9 hereof) to purchase and
pay for the number of shares of the Stock agreed to be purchased by such
Underwriter or Underwriters, the Company shall immediately give notice thereof
to you, and the non-defaulting Underwriters shall have the right within 24 hours
after the receipt by you of such notice to purchase, or procure one or more
other Underwriters to purchase, in such proportions as may be agreed upon
between you and such purchasing Underwriter or Underwriters and upon the terms
herein set forth, all or any part of the shares of the Stock which such
defaulting Underwriter or Underwriters agreed to purchase. If the non-defaulting
Underwriters fail so to make such arrangements with respect to all such shares
and portion, the number of shares of the Stock which each non-defaulting
Underwriter is otherwise obligated to purchase under this Agreement shall be
automatically increased on a pro rata basis to absorb the remaining shares and
portion which the defaulting Underwriter or Underwriters agreed to purchase;
provided, however, that the non-defaulting Underwriters shall not be obligated
to purchase the shares and portion which the defaulting Underwriter or
Underwriters agreed to purchase if the aggregate number of such shares of the
Stock exceeds 10% of the total number of shares of the Stock which all
Underwriters agreed to purchase hereunder. If the total number of shares of the
Stock which the defaulting Underwriter or Underwriters agreed to purchase shall
not be purchased or absorbed in accordance with the two preceding sentences, the
Company shall have the right, within 24 hours next succeeding the 24-hour period
above referred to, to make arrangements with other underwriters or purchasers
satisfactory to you for purchase of such shares and portion on the terms herein
set forth. In any such case, either you or the Company shall have the right to
postpone the Closing Date determined as provided in Section 5 hereof for not
more than seven business days after the date originally fixed as the Closing
Date pursuant to said Section 5 in order that any necessary changes in the
Registration Statement, the Prospectus or any other documents or arrangements
may be made. If neither the non-defaulting Underwriters nor the Company shall
make arrangements within the 24-hour periods stated above for the purchase of
all the shares of the Stock which the defaulting Underwriter or Underwriters

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agreed to purchase hereunder, this Agreement shall be terminated without further
act or deed and without any liability on the part of the Company to any
non-defaulting Underwriter and without any liability on the part of any
non-defaulting Underwriter to the Company. Nothing in this paragraph (b), and no
action taken hereunder, shall relieve any defaulting Underwriter from liability
in respect of any default of such Underwriter under this Agreement.

         (c) On the basis of the representations, warranties and covenants
herein contained, and subject to the terms and conditions herein set forth, the
Company grants an option to the several Underwriters to purchase, severally and
not jointly, up to 465,000 shares in the aggregate of the Option Stock from the
Company at the same price per share as the Underwriters shall pay for the
Underwritten Stock. Said option may be exercised only to cover over-allotments
in the sale of the Underwritten Stock by the Underwriters and may be exercised
in whole or in part at any time (but not more than once) on or before the
thirtieth day after the date of this Agreement upon written or telegraphic
notice by you to the Company setting forth the aggregate number of shares of the
Option Stock as to which the several Underwriters are exercising the option.
Delivery of certificates for the shares of Option Stock, and payment therefor,
shall be made as provided in Section 5 hereof. The number of shares of the
Option Stock to be purchased by each Underwriter shall be the same percentage of
the total number of shares of the Option Stock to be purchased by the several
Underwriters as such Underwriter is purchasing of the Underwritten Stock, as
adjusted by you in such manner as you deem advisable to avoid fractional shares.

         4. OFFERING BY UNDERWRITERS.

         (a) The terms of the initial public offering by the Underwriters of the
Stock to be purchased by them shall be as set forth in the Prospectus. The
Underwriters may from time to time change the public offering price after the
closing of the initial public offering and increase or decrease the concessions
and discounts to dealers as they may determine.

         (b) The information set forth in the last paragraph on the front cover
page and under "Underwriting" in the Registration Statement, any Preliminary
Prospectus and the Prospectus relating to the Stock filed by the Company
(insofar as such information relates to the Underwriters) constitutes the only
information furnished by the Underwriters to the Company for inclusion in the
Registration Statement, any Preliminary Prospectus, and the Prospectus, and you
on behalf of the respective Underwriters represent and warrant to the Company
that the statements made therein are correct.

         5. DELIVERY OF AND PAYMENT FOR THE STOCK.

         (a) Delivery of certificates for the shares of the Underwritten Stock
and the Option Stock (if the option granted by Section 3(c) hereof shall have
been exercised not later than 7:00 a.m., San Francisco time, on the date two
business days preceding the Closing Date), and payment therefor, shall be made
at the office of Gibson, Dunn & Crutcher LLP, 1717 Main Street, Dallas, Texas
75201, at 7:00 a.m., San Francisco time, on the fourth business day after the
date of this Agreement, or at such time on such other day, not later than seven
full business days after such fourth business day, as shall be agreed upon in
writing by the Company and you. The

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date and hour of such delivery and payment (which may be postponed as provided
in Section 3(b) hereof) are herein called the Closing Date.

         (b) If the option granted by Section 3(c) hereof shall be exercised
after 7:00 a.m., San Francisco time, on the date two business days preceding the
Closing Date, delivery of certificates for the shares of Option Stock, and
payment therefor, shall be made at the office of Gibson, Dunn & Crutcher LLP,
1717 Main Street, Dallas, Texas 75201, at 7:00 a.m., San Francisco time, on the
third business day after the exercise of such option.

         (c) Payment for the Stock purchased from the Company shall be made to
the Company or its order by wire transfer in same day funds. Such payment shall
be made upon delivery of certificates for the Stock to you for the respective
accounts of the several Underwriters against receipt therefor signed by you.
Certificates for the Stock to be delivered to you shall be registered in such
name or names and shall be in such denominations as you may request at least one
business day before the Closing Date, in the case of Underwritten Stock, and at
least one business day prior to the purchase thereof, in the case of the Option
Stock. Such certificates will be made available to the Underwriters for
inspection, checking and packaging at the offices of Lewco Securities
Corporation, 2 Broadway, New York, New York 10004 on the business day prior to
the Closing Date or, in the case of the Option Stock, by 3:00 p.m., New York
time, on the business day preceding the date of purchase.

         It is understood that you, individually and not on behalf of the
Underwriters, may (but shall not be obligated to) make payment to the Company
for shares to be purchased by any Underwriter whose funds shall not have been
received by you on the Closing Date or any later date on which Option Stock is
purchased for the account of such Underwriter. Any such payment by you shall not
relieve such Underwriter from any of its obligations hereunder.

         6. FURTHER AGREEMENTS OF THE COMPANY AND DAISYTEK. The Company and
Daisytek covenant and agree (and Daisytek shall cause the Company to covenant
and agree) as follows:

                  (a) The Company will (i) prepare and timely file with the
         Commission under Rule 424(b) a Prospectus containing information
         previously omitted at the time of effectiveness of the Registration
         Statement in reliance on Rule 430A and (ii) not file any amendment to
         the Registration Statement or supplement to the Prospectus of which you
         shall not previously have been advised and furnished with a copy or to
         which you shall have reasonably objected in writing or which is not in
         compliance with the Securities Act or the rules and regulations of the
         Commission.

                  (b) The Company will promptly notify each Underwriter in the
         event of (i) the request by the Commission for amendment of the
         Registration Statement or for supplement to the Prospectus or for any
         additional information, (ii) the issuance by the Commission of any stop
         order suspending the effectiveness of the Registration Statement, (iii)
         the institution or notice of intended institution of any action or
         proceeding for that purpose, (iv) the receipt by the Company of any
         notification with respect to the suspension of the qualification of the
         Stock for sale in any jurisdiction, or (v) the receipt

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         by it of notice of the initiation or threatening of any proceeding for
         such purpose. The Company will make every reasonable effort to prevent
         the issuance of such a stop order and, if such an order shall at any
         time be issued, to obtain the withdrawal thereof at the earliest
         possible moment.

                  (c) The Company will (i) on or before the Closing Date,
         deliver to you a signed copy of the Registration Statement as
         originally filed and of each amendment thereto filed prior to the time
         the Registration Statement becomes effective and, promptly upon the
         filing thereof, a signed copy of each post-effective amendment, if any,
         to the Registration Statement (together with, in each case, all
         exhibits thereto unless previously furnished to you) and will also
         deliver to you, for distribution to the Underwriters, a sufficient
         number of additional conformed copies of each of the foregoing (but
         without exhibits) so that one copy of each may be distributed to each
         Underwriter, (ii) as promptly as possible deliver to you and send to
         the several Underwriters, at such office or offices as you may
         designate, as many copies of the Prospectus as you may reasonably
         request, and (iii) thereafter from time to time during the period in
         which a prospectus is required by law to be delivered by an Underwriter
         or dealer, likewise send to the Underwriters as many additional copies
         of the Prospectus and as many copies of any supplement to the
         Prospectus and of any amended prospectus, filed by the Company with the
         Commission, as you may reasonably request for the purposes contemplated
         by the Securities Act.

                  (d) If at any time during the period in which a prospectus is
         required by law to be delivered by an Underwriter or dealer any event
         relating to or affecting the Company, or of which the Company shall be
         advised in writing by you, shall occur as a result of which it is
         necessary, in the opinion of counsel for the Company or of counsel for
         the Underwriters, to supplement or amend the Prospectus in order to
         make the Prospectus not misleading in the light of the circumstances
         existing at the time it is delivered to a purchaser of the Stock, the
         Company will forthwith prepare and file with the Commission a
         supplement to the Prospectus or an amended prospectus so that the
         Prospectus as so supplemented or amended will not contain any untrue
         statement of a material fact or omit to state any material fact
         necessary in order to make the statements therein, in the light of the
         circumstances existing at the time such Prospectus is delivered to such
         purchaser, not misleading. If, after the initial public offering of the
         Stock by the Underwriters and during such period, the Underwriters
         shall propose to vary the terms of offering thereof by reason of
         changes in general market conditions or otherwise, you will advise the
         Company in writing of the proposed variation, and, if in the opinion
         either of counsel for the Company or of counsel for the Underwriters
         such proposed variation requires that the Prospectus be supplemented or
         amended, the Company will forthwith prepare and file with the
         Commission a supplement to the Prospectus or an amended prospectus
         setting forth such variation. The Company authorizes the Underwriters
         and all dealers to whom any of the Stock may be sold by the several
         Underwriters to use the Prospectus, as from time to time amended or
         supplemented, in connection with the sale of the Stock in accordance
         with the applicable provisions of the Securities Act and the applicable
         rules and regulations thereunder for such period.

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                  (e) Prior to the filing thereof with the Commission, the
         Company will submit to you, for your information, a copy of any
         post-effective amendment to the Registration Statement and any
         supplement to the Prospectus or any amended prospectus proposed to be
         filed.

                  (f) The Company will cooperate, when and as requested by you,
         in the qualification of the Stock for offer and sale under the
         securities or blue sky laws of such jurisdictions as you may designate
         and, during the period in which a prospectus is required by law to be
         delivered by an Underwriter or dealer, in keeping such qualifications
         in good standing under said securities or blue sky laws; provided,
         however, that the Company shall not be obligated to file any general
         consent to service of process or to qualify as a foreign corporation in
         any jurisdiction in which it is not so qualified. The Company will,
         from time to time, prepare and file such statements, reports, and other
         documents as are or may be required to continue such qualifications in
         effect for so long a period as you may reasonably request for
         distribution of the Stock.

                  (g) During a period of five years commencing with the date
         hereof, the Company will furnish to you, and to each Underwriter who
         may so request in writing, copies of all periodic and special reports
         furnished to stockholders of the Company and of all information,
         documents and reports filed with the Commission (including the Report
         on Form SR required by Rule 463 of the Commission under the Securities
         Act).

                  (h) Not later than the 45th day following the end of the
         fiscal quarter first occurring after the first anniversary of the
         Effective Date, the Company will make generally available to its
         security holders an earnings statement in accordance with Section 11(a)
         of the Securities Act and Rule 158 thereunder.

                  (i) The Company agrees to pay all costs and expenses incident
         to the performance of its obligations under this Agreement, including
         all costs and expenses incident to (i) the preparation, printing and
         filing with the Commission and the National Association of Securities
         Dealers, Inc. of the Registration Statement, any Preliminary Prospectus
         and the Prospectus, (ii) the furnishing to the Underwriters of copies
         of any Preliminary Prospectus and of the several documents required by
         paragraph (c) of this Section 6 to be so furnished, (iii) the printing
         of this Agreement and related documents delivered to the Underwriters,
         (iv) the preparation, printing and filing of all supplements and
         amendments to the Prospectus referred to in paragraph (d) of this
         Section 6, (v) the furnishing to you and the Underwriters of the
         reports and information referred to in paragraph (g) of this Section 6
         and (vi) the printing and issuance of stock certificates, including the
         transfer agent's fees.

                  (j) The Company agrees to reimburse you, for the account of
         the several Underwriters, for blue sky fees and related disbursements
         (including counsel fees and disbursements and cost of printing
         memoranda for the Underwriters) paid by or for the account of the
         Underwriters or their counsel in qualifying the Stock under state
         securities or blue sky laws and in the review of the offering by the
         NASD.

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                  (k) The Company and Daisytek agree that, without the prior
         written consent of Hambrecht & Quist LLC on behalf of the Underwriters,
         neither the Company nor Daisytek will, for a period of 180 days
         following the commencement of the public offering of the Stock by the
         Underwriters, directly or indirectly, (i) sell, offer, contract to
         sell, make any short sale, pledge, sell any option or contract to
         purchase, purchase any option or contract to sell, grant any option,
         right or warrant to purchase or otherwise transfer or dispose of any
         shares of Common Stock or any securities convertible into or
         exchangeable or exercisable for or any rights to purchase or acquire
         Common Stock or (ii) enter into any swap or other agreement that
         transfers, in whole or in part, any of the economic consequences or
         ownership of Common Stock, whether any such transaction described in
         clause (i) or (ii) above is to be settled by delivery of Common Stock
         or such other securities, in cash or otherwise. The foregoing sentence
         shall not apply to (A) the Stock to be sold to the Underwriters
         pursuant to this Agreement and (B) options to purchase Common Stock
         granted under the stock option plans of the Company, all as described
         in "Management -- PFSweb Stock Option and Incentive Plans -- Employee
         Stock Option Plan and - Non-Employee Director Compensation; Stock
         Option and Retainer Plan" in the Preliminary Prospectus.

                  (l) If at any time during the 25-day period after the
         Registration Statement becomes effective any rumor, publication or
         event relating to or affecting the Company shall occur as a result of
         which in your opinion the market price for the Stock has been or is
         likely to be materially affected (regardless of whether such rumor,
         publication or event necessitates a supplement to or amendment of the
         Prospectus), the Company will, after written notice from you advising
         the Company to the effect set forth above, forthwith prepare, consult
         with you concerning the substance of, and disseminate a press release
         or other public statement, reasonably satisfactory to you, responding
         to or commenting on such rumor, publication or event.

                  (m) The Company agrees to use its best efforts to complete the
         divestiture of the Company from Daisytek as described in the
         Registration Statement and the Prospectus.

                  (n) In connection with the Directed Share Program, the Company
         will ensure that the Directed Shares will be restricted to the extent
         required by the NASD or the NASD rules from sale, transfer, assignment,
         pledge or hypothecation for a period of three months following the date
         of the effectiveness of the Registration Statement. The Company will
         direct the transfer agent to place stop transfer restrictions upon such
         securities for such period of time. Furthermore, the Company will
         comply with all securities and other laws, rules and regulations
         applicable to it in each foreign jurisdiction in which the Directed
         Shares are offered in connection with the Directed Share Program.

                  (o) The Company agrees to pay, or reimburse if paid by the
         Underwriters, all reasonable fees and disbursements of counsel incurred
         by the Underwriters in connection with the Directed Share Program and
         stamp duties, similar taxes or duties or other taxes, if any, incurred
         by the Underwriters in connection with the Directed Share Program.

                                       11
<PAGE>   12

         7. INDEMNIFICATION AND CONTRIBUTION.

         (a) Each of the Company and Daisytek jointly and severally agrees to
indemnify and hold harmless each Underwriter and each person (including each
partner or officer thereof) who controls any Underwriter within the meaning of
Section 15 of the Securities Act from and against any and all losses, claims,
damages or liabilities, joint or several, to which such indemnified parties or
any of them may become subject under the Securities Act, the Securities Exchange
Act of 1934, as amended (herein called the Exchange Act), or the common law or
otherwise, and each of the Company and Daisytek jointly and severally agrees to
reimburse each such Underwriter and controlling person for any legal or other
expenses (including, except as otherwise hereinafter provided, reasonable fees
and disbursements of counsel) incurred by the respective indemnified parties in
connection with defending against any such losses, claims, damages or
liabilities or in connection with any investigation or inquiry of, or other
proceeding which may be brought against, the respective indemnified parties, in
each case arising out of or based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement
(including the Prospectus as part thereof and any Rule 462(b) registration
statement) or any post-effective amendment thereto (including any Rule 462(b)
registration statement), or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or (ii) any untrue statement or alleged untrue statement
of a material fact contained in any Preliminary Prospectus or the Prospectus (as
amended or as supplemented if the Company shall have filed with the Commission
any amendment thereof or supplement thereto) or the omission or alleged omission
to state therein a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that the indemnity agreements of the Company and
Daisytek contained in this paragraph shall not apply to any such losses, claims,
damages, liabilities or expenses if such statement or omission was made in
reliance upon and in conformity with information furnished as herein stated or
otherwise furnished in writing to the Company by or on behalf of any Underwriter
for use in any Preliminary Prospectus or the Registration Statement or the
Prospectus or any such amendment thereof or supplement thereto.

         Further, each of the Company and Daisytek jointly and severally agrees
to indemnify and hold harmless each Underwriter and each person (including each
partner or officer thereof) who controls any Underwriter within the meaning of
Section 15 of the Securities Act from and against any and all losses, claims,
damages or liabilities, joint or several, to which such indemnified parties or
any of them may become subject under the Securities Act, the Securities Exchange
Act, or the common law or otherwise, and each of the Company and Daisytek
jointly and severally agrees to reimburse each such Underwriter and controlling
person for any legal or other expenses (including, except as otherwise
hereinafter provided, reasonable fees and disbursements of counsel) incurred by
the respective indemnified parties in connection with defending against any such
losses, claims, damages or liabilities or in connection with any investigation
or inquiry of, or other proceeding which may be brought against, the respective
indemnified parties, in each case arising out of or based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in the
prospectus wrapper material prepared by or with the consent of the Company for
distribution in foreign jurisdictions in connection with the Directed Share
Program attached to the Prospectus or any Preliminary Prospectus, or caused by

                                       12
<PAGE>   13

any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statement therein, when considered in
conjunction with the Prospectus or any applicable Preliminary Prospectus, not
misleading; (ii) caused by the failure of any Participant to pay for and accept
delivery of the shares which, immediately following the effectiveness of the
Registration Statement, were subject to a properly confirmed agreement to
purchase; or (iii) related to, arising out of, or in connection with the
Directed Share Program; provided, however, that, neither the Company nor
Daisytek shall be responsible under this subparagraph (iii) for any losses,
claims, damages or liabilities (or expenses relating thereto) that are finally
judicially determined to have resulted from the bad faith or gross negligence of
any Underwriter.

         The indemnity agreements of each of the Company and Daisytek contained
in this section 7(a) and the representations and warranties of the Company and
Daisytek contained in Section 2 hereof shall remain operative and in full force
and effect regardless of any investigation made by or on behalf of any
indemnified party and shall survive the delivery of and payment for the Stock.

         (b) Each Underwriter severally agrees to indemnify and hold harmless
the Company, each of its officers who signs the Registration Statement on his
own behalf or pursuant to a power of attorney, each of its directors, each other
Underwriter and each person (including each partner or officer thereof) who
controls the Company or any such other Underwriter within the meaning of Section
15 of the Securities Act, from and against any and all losses, claims, damages
or liabilities, joint or several, to which such indemnified parties or any of
them may become subject under the Securities Act, the Exchange Act, or the
common law or otherwise and to reimburse each of them for any legal or other
expenses (including, except as otherwise hereinafter provided, reasonable fees
and disbursements of counsel) incurred by the respective indemnified parties in
connection with defending against any such losses, claims, damages or
liabilities or in connection with any investigation or inquiry of, or other
proceeding which may be brought against, the respective indemnified parties, in
each case arising out of or based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement
(including the Prospectus as part thereof and any Rule 462(b) registration
statement) or any post-effective amendment thereto (including any Rule 462(b)
registration statement) or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading or (ii) any untrue statement or alleged untrue statement
of a material fact contained in the Prospectus (as amended or as supplemented if
the Company shall have filed with the Commission any amendment thereof or
supplement thereto) or any prospectus wrapper material prepared by or with the
consent of the Underwriters for distribution in foreign jurisdictions in
connection with the Directed Share Program attached to the Prospectus or any
Preliminary Prospectus or the omission or alleged omission to state therein a
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, if such statement
or omission was made in reliance upon and in conformity with information
furnished as herein stated or otherwise furnished in writing to the Company by
or on behalf of such indemnifying Underwriter for use in the Registration
Statement or the Prospectus (or any prospectus wrapper material attached
thereto) or any such amendment thereof or supplement thereto. The indemnity
agreement of each Underwriter contained in this

                                       13
<PAGE>   14

paragraph (b) shall remain operative and in full force and effect regardless of
any investigation made by or on behalf of any indemnified party and shall
survive the delivery of and payment for the Stock.

         (c) Each party indemnified under the provision of paragraphs (a) and
(b) of this Section 7 agrees that, upon the service of a summons or other
initial legal process upon it in any action or suit instituted against it or
upon its receipt of written notification of the commencement of any
investigation or inquiry of, or proceeding against, it in respect of which
indemnity may be sought on account of any indemnity agreement contained in such
paragraphs, it will promptly give written notice (herein called the Notice) of
such service or notification to the party or parties from whom indemnification
may be sought hereunder. No indemnification provided for in such paragraphs
shall be available to any party who shall fail so to give the Notice if the
party to whom such Notice was not given was unaware of the action, suit,
investigation, inquiry or proceeding to which the Notice would have related and
was prejudiced by the failure to give the Notice, but the omission so to notify
such indemnifying party or parties of any such service or notification shall not
relieve such indemnifying party or parties from any liability which it or they
may have to the indemnified party for contribution or otherwise than on account
of such indemnity agreement. Any indemnifying party shall be entitled at its own
expense to participate in the defense of any action, suit or proceeding against,
or investigation or inquiry of, an indemnified party. Any indemnifying party
shall be entitled, if it so elects within a reasonable time after receipt of the
Notice by giving written notice (herein called the Notice of Defense) to the
indemnified party, to assume (alone or in conjunction with any other
indemnifying party or parties) the entire defense of such action, suit,
investigation, inquiry or proceeding, in which event such defense shall be
conducted, at the expense of the indemnifying party or parties, by counsel
chosen by such indemnifying party or parties and reasonably satisfactory to the
indemnified party or parties; provided, however, that (i) if the indemnified
party or parties reasonably determine that there may be a conflict between the
positions of the indemnifying party or parties and of the indemnified party or
parties in conducting the defense of such action, suit, investigation, inquiry
or proceeding or that there may be legal defenses available to such indemnified
party or parties different from or in addition to those available to the
indemnifying party or parties, then counsel for the indemnified party or parties
shall be entitled to conduct the defense to the extent reasonably determined by
such counsel to be necessary to protect the interests of the indemnified party
or parties and (ii) in any event, the indemnified party or parties shall be
entitled to have counsel chosen by such indemnified party or parties participate
in, but not conduct, the defense. If, within a reasonable time after receipt of
the Notice, an indemnifying party gives a Notice of Defense and the counsel
chosen by the indemnifying party or parties is reasonably satisfactory to the
indemnified party or parties, the indemnifying party or parties will not be
liable under paragraphs (a) through (c) of this Section 7 for any legal or other
expenses subsequently incurred by the indemnified party or parties in connection
with the defense of the action, suit, investigation, inquiry or proceeding,
except that (A) the indemnifying party or parties shall bear the legal and other
expenses incurred in connection with the conduct of the defense as referred to
in clause (i) of the proviso to the preceding sentence and (B) the indemnifying
party or parties shall bear such other expenses as it or they have authorized to
be incurred by the indemnified party or parties. If, within a reasonable time
after receipt of the Notice, no Notice of Defense has been given, the
indemnifying party or parties shall be

                                       14
<PAGE>   15

responsible for any legal or other expenses incurred by the indemnified party or
parties in connection with the defense of the action, suit, investigation,
inquiry or proceeding.

         (d) If the indemnification provided for in this Section 7 is
unavailable or insufficient to hold harmless an indemnified party under
paragraph (a) or (b) of this Section 7, then each indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities referred to in paragraph (a) or (b) of this Section 7 (i) in such
proportion as is appropriate to reflect the relative benefits received by each
indemnifying party from the offering of the Stock or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of each indemnifying party in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, or actions in respect thereof, as well as any
other relevant equitable considerations. The relative benefits received by the
Company and Daisytek, taken together, and the Underwriters shall be deemed to be
in the same respective proportions as the total net proceeds from the offering
of the Stock received by the Company and the total underwriting discount
received by the Underwriters, as set forth in the table on the cover page of the
Prospectus, bear to the aggregate public offering price of the Stock. Relative
fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by each
indemnifying party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission.

         The parties agree that it would not be just and equitable if
contributions pursuant to this paragraph (d) were to be determined by pro rata
allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation which does not take into account
the equitable considerations referred to in the first sentence of this paragraph
(d). The amount paid by an indemnified party as a result of the losses, claims,
damages or liabilities, or actions in respect thereof, referred to in the first
sentence of this paragraph (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigation, preparing to defend or defending against any action or claim
which is the subject of this paragraph (d). Notwithstanding the provisions of
this paragraph (d), no Underwriter shall be required to contribute any amount in
excess of the underwriting discount applicable to the Stock purchased by such
Underwriter. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters' obligations in this paragraph (d) to
contribute are several in proportion to their respective underwriting
obligations and not joint.

         Each party entitled to contribution agrees that upon the service of a
summons or other initial legal process upon it in any action instituted against
it in respect of which contribution may be sought, it will promptly give written
notice of such service to the party or parties from whom contribution may be
sought, but the omission so to notify such party or parties of any such service
shall not relieve the party from whom contribution may be sought from any
obligation it

                                       15
<PAGE>   16

may have hereunder or otherwise (except as specifically provided in paragraph
(c) of this Section 7).

         (e) Neither the Company nor Daisytek will, without the prior written
consent of each Underwriter, settle or compromise or consent to the entry of any
judgment in any pending or threatened claim, action, suit or proceeding in
respect of which indemnification may be sought hereunder (whether or not such
Underwriter or any person who controls such Underwriter within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act is a party to
such claim, action, suit or proceeding) unless such settlement, compromise or
consent includes an unconditional release of such Underwriter and each such
controlling person from all liability arising out of such claim, action, suit or
proceeding.

         8. TERMINATION. This Agreement may be terminated by you at any time
prior to the Closing Date by giving written notice to the Company if after the
date of this Agreement trading in the Common Stock shall have been suspended, or
if there shall have occurred (i) the engagement in hostilities or an escalation
of major hostilities by the United States or the declaration of war or a
national emergency by the United States on or after the date hereof, (ii) any
outbreak of hostilities or other national or international calamity or crisis or
change in economic or political conditions if the effect of such outbreak,
calamity, crisis or change in economic or political conditions in the financial
markets of the United States would, in the Underwriters' reasonable judgment,
make the offering or delivery of the Stock impracticable, (iii) suspension of
trading in securities generally or a material adverse decline in value of
securities generally on the New York Stock Exchange, the American Stock
Exchange, the Nasdaq National Market, or limitations on prices (other than
limitations on hours or numbers of days of trading) for securities on either
such exchange or system, (iv) the enactment, publication, decree or other
promulgation of any federal or state statute, regulation, rule or order of, or
commencement of any proceeding or investigation by, any court, legislative body,
agency or other governmental authority which in the Underwriters' reasonable
opinion materially and adversely affects or will materially or adversely affect
the business or operations of the Company, (v) declaration of a banking
moratorium by either federal or New York State authorities or (vi) the taking of
any action by any federal, state or local government or agency in respect of its
monetary or fiscal affairs which in the Underwriters' reasonable opinion has a
material adverse effect on the securities markets in the United States. If this
Agreement shall be terminated pursuant to this Section 8, there shall be no
liability of the Company or Daisytek to the Underwriters and no liability of the
Underwriters to the Company or Daisytek; provided, however, that in the event of
any such termination the Company agrees to indemnify and hold harmless the
Underwriters from all costs or expenses incident to the performance of the
obligations of the Company and Daisytek under this Agreement, including all
costs and expenses referred to in paragraphs (i) and (j) of Section 6 hereof.

         9. CONDITIONS OF UNDERWRITERS' OBLIGATIONS. The obligations of the
several Underwriters to purchase and pay for the Stock shall be subject to the
performance by the Company of all its obligations to be performed hereunder at
or prior to the Closing Date or any later date on which Option Stock is to be
purchased, as the case may be, and to the following further conditions:

                                       16
<PAGE>   17

                  (a) The Registration Statement shall have become effective;
         and no stop order suspending the effectiveness thereof shall have been
         issued and no proceedings therefor shall be pending or threatened by
         the Commission.

                  (b) The legality and sufficiency of the sale of the Stock
         hereunder and the validity and form of the certificates representing
         the Stock, all corporate proceedings and other legal matters incident
         to the foregoing, and the form of the Registration Statement and of the
         Prospectus (except as to the financial statements contained therein),
         shall have been approved at or prior to the Closing Date by Gibson,
         Dunn & Crutcher LLP, counsel for the Underwriters.

                  (c) You shall have received from Wolff & Samson, P.A., counsel
         for the Company and Daisytek, an opinion, addressed to the Underwriters
         and dated the Closing Date, covering the matters set forth in Annex A
         hereto, and if Option Stock is purchased at any date after the Closing
         Date, an additional opinion from such counsel, addressed to the
         Underwriters and dated such later date, confirming that the statements
         expressed as of the Closing Date in such opinion remain valid as of
         such later date.

                  (d) You shall be satisfied that (i) as of the Effective Date,
         the statements made in the Registration Statement and the Prospectus
         were true and correct and neither the Registration Statement nor the
         Prospectus omitted to state any material fact required to be stated
         therein or necessary in order to make the statements therein,
         respectively, not misleading, (ii) since the Effective Date, no event
         has occurred which should have been set forth in a supplement or
         amendment to the Prospectus which has not been set forth in such a
         supplement or amendment, (iii) since the respective dates as of which
         information is given in the Registration Statement in the form in which
         it originally became effective and the Prospectus contained therein,
         there has not been any material adverse change or any development
         involving a prospective material adverse change in or affecting the
         business, properties, financial condition or results of operations of
         the Company and its subsidiaries, taken as a whole, whether or not
         arising from transactions in the ordinary course of business, and,
         since such dates, except in the ordinary course of business, neither
         the Company nor any of its subsidiaries has entered into any material
         transaction not referred to in the Registration Statement in the form
         in which it originally became effective and the Prospectus contained
         therein, (iv) neither the Company nor any of its subsidiaries has any
         material contingent obligations which are not disclosed in the
         Registration Statement and the Prospectus, (v) there are not any
         pending or known threatened legal proceedings to which the Company or
         any of its subsidiaries is a party or of which property of the Company
         or any of its subsidiaries is the subject which are material and which
         are not disclosed in the Registration Statement and the Prospectus,
         (vi) there are not any franchises, contracts, leases or other documents
         which are required to be filed as exhibits to the Registration
         Statement which have not been filed as required, (vii) the
         representations and warranties of the Company herein are true and
         correct in all material respects as of the Closing Date or any later
         date on which Option Stock is to be purchased, as the case may be, and
         (viii) there has not been any material change in the market for
         securities in general or in political, financial or economic conditions
         from those reasonably foreseeable as to render it impracticable in your
         reasonable judgment to

                                       17
<PAGE>   18

         make a public offering of the Stock, or a material adverse change in
         market levels for securities in general (or those of companies in
         particular) or financial or economic conditions which render it
         inadvisable to proceed.

                  (e) You shall have received on the Closing Date and on any
         later date on which Option Stock is purchased a certificate, dated the
         Closing Date or such later date, as the case may be, and signed by the
         President and the Chief Financial Officer of the Company, stating that
         the respective signers of said certificate have carefully examined the
         Registration Statement in the form in which it originally became
         effective and the Prospectus contained therein and any supplements or
         amendments thereto, and that the statements included in clauses (i)
         through (vii) of paragraph (d) of this Section 9 are true and correct.

                  (f) You shall have received from Arthur Andersen LLP, a letter
         or letters, addressed to the Underwriters and dated the Closing Date
         and any later date on which Option Stock is purchased, confirming that
         they are independent public accountants with respect to the Company
         within the meaning of the Securities Act and the applicable published
         rules and regulations thereunder and based upon the procedures
         described in their letter delivered to you concurrently with the
         execution of this Agreement (herein called the Original Letter), but
         carried out to a date not more than three business days prior to the
         Closing Date or such later date on which Option Stock is purchased (i)
         confirming, to the extent true, that the statements and conclusions set
         forth in the Original Letter are accurate as of the Closing Date or
         such later date, as the case may be, and (ii) setting forth any
         revisions and additions to the statements and conclusions set forth in
         the Original Letter which are necessary to reflect any changes in the
         facts described in the Original Letter since the date of the Original
         Letter or to reflect the availability of more recent financial
         statements, data or information. The letters shall not disclose any
         change, or any development involving a prospective change, in or
         affecting the business or properties of the Company or any of its
         subsidiaries which, in your sole judgment, makes it impractical or
         inadvisable to proceed with the public offering of the Stock or the
         purchase of the Option Stock as contemplated by the Prospectus.

                  (g) You shall have received from Arthur Andersen LLP a letter
         stating that their review of the Company's system of internal
         accounting controls, to the extent they deemed necessary in
         establishing the scope of their examination of the Company's financial
         statements as at March(degree)31, 1999, did not disclose any weakness
         in internal controls that they considered to be material weaknesses.

                  (h) You shall have been furnished evidence in usual written or
         telegraphic form from the appropriate authorities of the several
         jurisdictions, or other evidence satisfactory to you, of the
         qualification referred to in paragraph (f) of Section 6 hereof.

                  (i) Prior to the Closing Date, the Stock to be issued and sold
         by the Company shall have been duly authorized for listing by the
         Nasdaq National Market upon official notice of issuance.

                                       18
<PAGE>   19

                  (j) On or prior to the Closing Date, you shall have received
         from all directors, officers, and beneficial holders of more than 5% of
         the outstanding Common Stock agreements, in form reasonably
         satisfactory to Hambrecht & Quist LLC, stating that without the prior
         written consent of Hambrecht & Quist LLC on behalf of the Underwriters,
         such person or entity will not, for a period of 180 days following the
         commencement of the public offering of the Stock by the Underwriters,
         directly or indirectly, (i) sell, offer, contract to sell, make any
         short sale, pledge, sell any option or contract to purchase, purchase
         any option or contract to sell, grant any option, right or warrant to
         purchase or otherwise transfer or dispose of any shares of Common Stock
         or any securities convertible into or exchangeable or exercisable for
         or any rights to purchase or acquire Common Stock or (ii) enter into
         any swap or other agreement that transfers, in whole or in part, any of
         the economic consequences or ownership of Common Stock, whether any
         such transaction described in clause (i) or (ii) above is to be settled
         by delivery of Common Stock or such other securities, in cash or
         otherwise.

         All the agreements, opinions, certificates and letters mentioned above
or elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if Gibson, Dunn & Crutcher LLP, counsel for the
Underwriters, shall be satisfied that they comply in form and scope.

         In case any of the conditions specified in this Section 9 shall not be
fulfilled, this Agreement may be terminated by you by giving notice to the
Company. Any such termination shall be without liability of the Company or
Daisytek to the Underwriters and without liability of the Underwriters to the
Company or Daisytek; provided, however, that (i) in the event of such
termination, the Company agrees to indemnify and hold harmless the Underwriters
from all costs or expenses incident to the performance of the obligations of the
Company under this Agreement, including all costs and expenses referred to in
paragraphs (i), (j) and (o) of Section 6 hereof, and (ii) if this Agreement is
terminated by you because of any refusal, inability or failure on the part of
the Company or Daisytek to perform any agreement herein, to fulfill any of the
conditions herein, or to comply with any provision hereof other than by reason
of a default by any of the Underwriters, the Company will reimburse the
Underwriters severally upon demand for all out-of-pocket expenses (including
reasonable fees and disbursements of counsel) that shall have been incurred by
them in connection with the transactions contemplated hereby.

         10. CONDITIONS OF THE OBLIGATION OF THE COMPANY. The obligation of the
Company to deliver the Stock shall be subject to the conditions that (a) the
Registration Statement shall have become effective and (b) no stop order
suspending the effectiveness thereof shall be in effect and no proceedings
therefor shall be pending or threatened by the Commission.

         In case either of the conditions specified in this Section 10 shall not
be fulfilled, this Agreement may be terminated by the Company by giving notice
to you. Any such termination shall be without liability of the Company or
Daisytek to the Underwriters and without liability of the Underwriters to the
Company or Daisytek; provided, however, that in the event of any such
termination the Company agrees to indemnify and hold harmless the Underwriters
from all costs or expenses incident to the performance of the obligations of the
Company and Daisytek under

                                       19
<PAGE>   20

this Agreement, including all costs and expenses referred to in paragraphs (i)
and (j) of Section 6 hereof.

         11. REIMBURSEMENT OF CERTAIN EXPENSES. In addition to its other
obligations under Section 7 of this Agreement, the Company hereby agrees to
reimburse on a quarterly basis the Underwriters for all reasonable legal and
other expenses incurred in connection with investigating or defending any claim,
action, investigation, inquiry or other proceeding arising out of or based upon
any statement or omission, or any alleged statement or omission, described in
paragraph (a) of Section 7 of this Agreement, notwithstanding the absence of a
judicial determination as to the propriety and enforceability of the obligations
under this Section 11 and the possibility that such payments might later be held
to be improper; provided, however, that (i) to the extent any such payment is
ultimately held to be improper, the persons receiving such payments shall
promptly refund them and (ii) such persons shall provide to the Company, upon
request, reasonable assurances of their ability to effect any refund, when and
if due.

         12. PERSONS ENTITLED TO BENEFIT OF AGREEMENT. This Agreement shall
inure to the benefit of Daisytek, the Company and the several Underwriters and,
with respect to the provisions of Section 7 hereof, the several parties (in
addition to Daisytek, the Company and the several Underwriters) indemnified
under the provisions of said Section 7, and their respective personal
representatives, successors and assigns. Nothing in this Agreement is intended
or shall be construed to give to any other person, firm or corporation any legal
or equitable remedy or claim under or in respect of this Agreement or any
provision herein contained. The term "successors and assigns" as herein used
shall not include any purchaser, as such purchaser, of any of the Stock from any
of the several Underwriters.

         13. NOTICES. Except as otherwise provided herein, all communications
hereunder shall be in writing or by telegraph and, if to the Underwriters, shall
be mailed, telegraphed or delivered to Hambrecht & Quist LLC, One Bush Street,
San Francisco, California 94104; and if to the Company or Daisytek, shall be
mailed, telegraphed or delivered to the Company's office, 500 North Central
Expressway, Plano, Texas 75074, Attention: Mark C. Layton. All notices given by
telegraph shall be promptly confirmed by letter.

         14. MISCELLANEOUS. The reimbursement, indemnification and contribution
agreements contained in this Agreement and the representations, warranties and
covenants in this Agreement shall remain in full force and effect regardless of
(a) any termination of this Agreement, (b) any investigation made by or on
behalf of any Underwriter or controlling person thereof, or by or on behalf of
the Company or Daisytek or their respective directors or officers, and (c)
delivery and payment for the Stock under this Agreement; provided, however, that
if this Agreement is terminated prior to the Closing Date, the provisions of
paragraph (k) of Section 6 hereof all be of no further force or effect.

         This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

         This Agreement shall be governed by, and construed in accordance with,
the laws of the State of California.

                                       20
<PAGE>   21

         Please sign and return to the Company the enclosed duplicates of this
letter, whereupon this letter will become a binding agreement among the Company,
Daisytek and the several Underwriters in accordance with its terms.

                                     Very truly yours,

                                     PFSWEB, INC.

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

                                     DAISYTEK INTERNATIONAL CORPORATION

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

The foregoing Agreement is hereby confirmed
and accepted as of the date first above written.

HAMBRECHT & QUIST LLC
Dain Rauscher Wessels, a division of Dain Rauscher Incorporated
Jefferies & Company, Inc.
  By Hambrecht & Quist LLC

By
  -----------------------------

Name
    ---------------------------

Acting on behalf of the several Underwriters,
including themselves, named in Schedule I hereto.

<PAGE>   22

                                   SCHEDULE I

                                  UNDERWRITERS

<TABLE>
<CAPTION>

                                                                                NUMBER OF
                                                                                 SHARES
                                                                                 TO BE
         UNDERWRITERS                                                           PURCHASED
         ------------                                                           ---------

<S>                                                                             <C>
Hambrecht & Quist LLC                                                            1,275,000
LEAD MANAGER (1)                                                                 1,275,000

Dain Rauscher Wessels, a division of Dain Rauscher Incorporated                    701,250
Jefferies & Company, Inc.                                                          573,750
CO-MANAGER (2)                                                                   1,275,000

Robert W. Baird & Co. Incorporated                                                  50,000
Baldwin, Anthony, McIntyre                                                          50,000
J. C. Bradford & Co.                                                                50,000
First Southwest Company                                                             50,000
McDonald Investments Inc.                                                           50,000
The Robinson-Humphrey Company, LLC                                                  50,000
Sanders Morris Mundy                                                                50,000
Southwest Securities, Inc.                                                          50,000
Stephens Inc.                                                                       50,000
Tucker Anthony Cleary Gull                                                          50,000
B.C. Ziegler and Company                                                            50,000
UNDERWRITER (11)                                                                   550,000

TOTAL (14)                                                                       3,100,000
</TABLE>

<PAGE>   23

                                     ANNEX A

                     FORM OF OPINION OF WOLFF & SAMSON, P.A.
                      COUNSEL FOR THE COMPANY AND DAISYTEK

         We have acted as counsel to PFSweb, Inc., a Delaware corporation (the
"Company") and Daisytek International Corporation, a Delaware corporation
("Daisytek"), in connection with the issuance and sale by the Company of
3,100,000 shares of its authorized but unissued Common Stock, $0.001 par value
(the "Common Stock") (said 3,100,000 shares of Common Stock being herein called
the "Underwritten Stock") and the to grant to the Underwriters (as hereinafter
defined) an option to purchase up to 465,000 additional shares of Common Stock
(herein called the "Option Stock" and with the Underwritten Stock herein
collectively called the "Stock") pursuant to an Underwriting Agreement dated
December 1, 1999 (the "Underwriting Agreement") by and among the Company,
Daisytek, Hambrecht & Quist LLC, Dain Rauscher Wessels, a division of Dain
Rauscher Incorporated, and Jefferies & Company, Inc., as Representatives of the
several underwriters named in Schedule A thereto (collectively, the
"Underwriters").

         This opinion is being furnished to you pursuant to Sections 9(c) of the
Underwriting Agreement. Capitalized terms used and not otherwise defined herein
shall have the respective meanings set forth in the Underwriting Agreement.

         In connection with this opinion, we have examined originals or copies,
certified or otherwise identified to our satisfaction, of (i) the Underwriting
Agreement, (ii) the Registration Statement, (iii) the Preliminary Prospectus and
the Prospectus, (iv) the Amended and Restated Certificate of Incorporation of
the Company (the "Amended and Restated Certificate"); (vi) the Amended and
Restated By-laws of the Company (the "By-laws"); (v) resolutions of the Board of
Directors of the Company and Daisytek; (vi) a specimen certificate for the
Common Stock; and (vii) such other documents as we have deemed necessary or
appropriate as a basis for the opinions set forth below. We have also examined
originals or copies, certified or otherwise identified to our satisfaction, of
such records of the Company and such agreements, certificates, and receipt of
public officials, certificates of officers or representatives of the Company and
others, and such other documents, certificates and records as we have deemed
necessary or appropriate as a basis for the opinions set forth herein.

         In our examination, we have assumed the genuineness of all signatures,
the legal capacity of all natural persons, the authenticity of all documents
submitted to us as originals, the conformity to original documents of all
documents submitted to us as certified or photostatic copies and the
authenticity of the originals of such latter documents. As to any facts material
to the opinions expressed herein, we have relied to the extent we deemed
appropriate upon the representations and warranties of the Company and Daisytek
contained in the Underwriting Agreement, certificates of state authorities and
public officials and statements and representations of officers of the Company
and Daisytek.

                                      A-24
<PAGE>   24

         We are authorized to practice law in the State of New Jersey and we do
not purport to be experts in, or to express any opinion hereunder concerning any
law other than the laws of the State of New Jersey, the General Corporation Law
of the State of Delaware (the "GCL") and federal law as of the date hereof. To
the extent any documents, agreements or transactions as to which we express our
opinion hereunder, or any of the parties thereto, are governed by the laws of
other jurisdictions, we have assumed, without investigation and without
expressing any opinion thereon, that the laws of such other jurisdictions are
the same as the laws of the State of New Jersey.

         Our opinions are limited to the specific issues addressed herein and
are limited in all respects to existing laws and facts as of the date hereof. We
disclaim any responsibility to advise you of any change to such laws or facts
which may occur after the date hereof.

         Based upon and subject to the foregoing and the limitations set forth
below, we are of the opinion or advise you that:

         (i) each of the Company and its U.S. subsidiaries has been duly
     incorporated and is validly existing as a corporation in good standing
     under the laws of the jurisdiction of its incorporation, is duly qualified
     as a foreign corporation and in good standing in each state of the United
     States of America in which its ownership or leasing of property requires
     such qualification (except where the failure to be so qualified would not
     have a material adverse effect on the business, properties, financial
     condition or results of operations of the Company and its subsidiaries,
     taken as a whole), and has full corporate power and authority to own or
     lease its properties and conduct its business as described in the
     Registration Statement; all the issued and outstanding capital stock of
     each of the U.S. subsidiaries of the Company has been duly authorized and
     validly issued and is fully paid and nonassessable, and is owned by the
     Company free and clear of all liens, encumbrances and security interests,
     and to the best of our knowledge, no options, warrants or other rights to
     purchase, agreements or other obligations to issue or other rights to
     convert any obligations into shares of capital stock or ownership interests
     in such subsidiaries are outstanding; Daisytek has been duly incorporated
     and is validly existing as a corporation in good standing under the laws of
     the jurisdiction of its incorporation;

         (ii) the authorized capital stock of the Company consists of 1,000,000
     shares of Preferred Stock, $1.00 par value, and 40,000,000 shares of Common
     Stock, $0.01 par value, of which, based upon our review of the Company's
     minute book, stock ledger and other applicable records, there are no shares
     of Preferred Stock outstanding and there are outstanding 17,405,000 shares
     of Common Stock (including the Underwritten Stock plus the number of shares
     of Option Stock issued on the date hereof) and such authorized capital
     stock conforms to the description thereof contained in the Prospectus;
     proper corporate proceedings have been validly taken to authorize such
     authorized capital stock; all of the outstanding shares of such capital
     stock (including the Underwritten Stock and the shares of Option Stock
     issued, if any) have been duly and validly issued and are fully paid and
     nonassessable; any Option Stock purchased after the Closing Date, when
     issued and delivered to and paid for by the Underwriters as provided in the
     Underwriting

                                      A-25
<PAGE>   25

     Agreement, will have been duly and validly issued and be fully paid and
     nonassessable; and no preemptive rights of, or rights of refusal in favor
     of, stockholders exist with respect to the Stock, or the issue and sale
     thereof, pursuant to the Certificate of Incorporation or Bylaws of the
     Company and, to our knowledge , there are no contractual preemptive rights
     that have not been waived, rights of first refusal or right of co-sale
     which exist with respect to the issue and sale of the Stock;

         (iii) the Registration Statement has become effective under the
     Securities Act and, to the best of our knowledge, no stop order suspending
     the effectiveness of the Registration Statement or suspending or preventing
     the use of the Prospectus is in effect and no proceedings for that purpose
     have been instituted or are pending or, to our knowledge, are contemplated
     by the Commission;

         (iv) the Registration Statement and the Prospectus (except as to the
     financial statements and schedules and other financial data contained
     therein, as to which such counsel need express no opinion) comply as to
     form in all material respects with the requirements of the Securities Act
     and with the rules and regulations of the Commission thereunder;

         (v) we have participated in conferences with officers and other
     representatives of the Company and Daisytek, representatives of the
     independent public accountants of the Company and Daisytek and
     representatives of the Underwriters at which the contents of the
     Registration Statement and the Prospectus were discussed and, although we
     are not passing upon and do not assume responsibility for the accuracy,
     completeness or fairness of the statements contained in the Registration
     Statement or the Prospectus (except as, and to the extent, expressly stated
     above), on the basis of the foregoing, nothing has come to our attention
     that causes us to believe that on the Effective Date the Registration
     Statement (except as to the financial statements and schedules and other
     financial and statistical data contained or incorporated by reference
     therein, as to which we express no opinion or belief) contained any untrue
     statement of a material fact or omitted to state a material fact required
     to be stated therein or necessary to make the statements therein not
     misleading, or that the Prospectus (except as to the financial statements
     and schedules and other financial and statistical data contained or
     incorporated by reference therein, as to which we express no opinion or
     belief) as of its date or at the Closing Date, contained or contains any
     untrue statement of a material fact or omitted or omits to state a material
     fact necessary in order to make the statements therein, in light of the
     circumstances under which they were made, not misleading;

         (vi) the information required to be set forth in the Registration
     Statement in answer to Items 9, 10 (insofar as it relates to our firm) and
     11(c) of Form S-1 is, to the best of our knowledge, accurately and
     adequately set forth therein in all material respects or no response is
     required with respect to such Items, and the description of the Company's
     stock option plans and the options granted and which may be granted
     thereunder set forth in the Prospectus accurately and fairly presents the
     information required to be shown with respect to said plans and options to
     the extent required by the Securities Act and the rules and regulations of
     the Commission thereunder;

                                      A-26
<PAGE>   26

         (vii) we are not aware of (1) any franchises, contracts, leases or
     documents which in our opinion are of a character required to be described
     in the Registration Statement or the Prospectus or to be filed as exhibits
     to the Registration Statement, which are not described and filed as
     required or (2) any legal proceedings, pending or threatened, which in our
     opinion are of a character required to be described in the Registration
     Statement or the Prospectus which are not described as required;

         (viii) each of the Spin-off Agreements has been duly authorized,
     executed and delivered by the parties thereto and each of the Spin-off
     Agreements is a valid and binding agreement of the parties thereto
     enforceable in accordance with its terms;

         (ix) the Underwriting Agreement has been duly authorized, executed and
     delivered by the Company and Daisytek;

         (x) (1) the Underwriting Agreement and the issue and sale by the
     Company of the shares of Stock sold by the Company as contemplated therein
     and (2) the Spin-off Agreements and the transactions contemplated therein,
     in each case, do not and will not conflict with, or result in a breach of,
     the Certificate of Incorporation or Bylaws of Daisytek, the Company or any
     of their subsidiaries or any agreement or instrument known to us to which
     Daisytek, the Company or any of their subsidiaries is a party or by which
     any of the properties or assets of Daisytek, the Company or any of their
     subsidiaries may be bound or affected, or any applicable law or regulation,
     or so far as is known to us, any order, writ, injunction or decree, of any
     jurisdiction, court or governmental instrumentality;

         (xi) to our knowledge, there are no holders of securities of the
     Company having rights to the registration of shares of Common Stock, or
     other securities, because of the filing of the Registration Statement by
     the Company, that have not waived such rights, or such rights have expired
     by reason of lapse of time following notification of the Company's intent
     to file the Registration Statement;

         (xii) no consent, approval, authorization or order of any court or
     governmental agency or body is required for the consummation of the
     transactions contemplated in the Underwriting Agreement, except such as
     have been obtained under the Securities Act (and we express no opinion as
     to any necessary qualification under the securities or Blue Sky laws of the
     various jurisdictions in which the Shares are being offered by the
     Underwriters), or for the transactions contemplated in the Spin-off
     Agreements; and

         (xiii) the Stock issued and sold by the Company is duly authorized for
     listing by the Nasdaq National Market.

         Our opinions set forth above are subject to the following further
limitations and qualifications.

                                      A-27
<PAGE>   27

         1. Our opinion set forth in Paragraph (vii) above is subject to
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or similar laws affecting the enforcement of creditors rights
generally and general principles of equity (regardless of whether considered in
a proceeding in equity or at law), and we express no opinion as to whether a
court would grant specific performance or any other equitable remedy with
respect to enforcement of the agreements described therein or whether a court
would grant a particular remedy sought under such agreements as opposed to
another remedy provided therein or at law or in equity. Without limiting the
foregoing, we express no opinion as to any limitations based on statute or
public policy limiting a right to indemnification or a person's right to waive
the benefits of statutory provisions or common law rights.

         2. To the extent the purchase and distribution of Stock contemplated by
the Underwriting Agreement is accomplished through a book entry closing, we have
assumed, with your permission and without independent investigation, that (i)
Depository Trust Company ("DTC") is registered as a "clearing agency" under
Federal securities law, (ii) DTC, or one or more nominees designated by DTC, has
acquired possession of and control over the Stock, (iii) the Stock is registered
in the name of the DTC or one or more of its nominees or the certificates for
the Stock are in bearer form or endorsed in blank by the person specified by the
certificated security to be entitled to the security and (iv) appropriate
entries to the account of the Underwriters on the books of DTC have been made
under Section 8-320 of the New York Uniform Commercial Code.

         This opinion is furnished to you solely for your benefit and the
benefit of the other Underwriters in connection with the closing under the
Underwriting Agreement occurring today and is not to be used, circulated, quoted
or otherwise referred to for any other purpose without our express written
permission.

                                                  Very truly yours,

                                      A-28<PAGE>   1
                                                                  EXHIBIT 10.109

                             CONTRACT SALE AGREEMENT

                          DATED AS OF FEBRUARY 4, 2000

                                 BY AND BETWEEN

                       NATIONAL AUTO FINANCE COMPANY, INC.

                                       AND

                            NUVELL CREDIT CORPORATION

<PAGE>   2

         CONTRACT SALE AGREEMENT ( the "Sale Agreement"), dated as of February
4, 2000, by and between NATIONAL AUTO FINANCE COMPANY, INC. (the "Seller"), a
Delaware corporation, its successors and permitted assigns, and NUVELL CREDIT
CORPORATION (the "Purchaser"), a Delaware corporation, its successors and
assigns.

                              W I T N E S S E T H:

         WHEREAS, the Seller purchases from Dealers certain retail installment
sales contracts secured by new and used automobiles and light-duty trucks
("Contracts");

         WHEREAS, the Seller desires to purchase Contracts in accordance with
terms of this Agreement and the Seller's Contract Finance Program Guidelines, as
defined herein, for sale and assignment to the Purchaser;

         WHEREAS, the Seller intends to sell, and the Purchaser intends to
purchase, certain of such Contracts together with all of its rights thereunder,
as described herein;

         NOW, THEREFORE, the parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

1.1      DEFINITIONS

         "ADVERSE CLAIM" means a claim of ownership or any lien, security
interest, title retention, trust or other charge or encumbrance, either legal or
in equity, or other type of preferential arrangement having the effect of a lien
or security interest upon or with respect to the Sold Program Contracts or
Purchased Assets other than in favor of the Purchaser with respect to this Sale
Agreement.

         "AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
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 management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

         "AMOUNT FINANCED" has the meaning ascribed thereto in the applicable
Truth-in-Lending disclosure in the Program Contract given to the Obligor.

         "APR" means, with respect to a Contract, as of any time, the
contractual annual rate of interest or annual rate of finance charges being
borne by such Contract.

                                      - 1 -

<PAGE>   3

         "ASSIGNMENT" means the assignment by Seller to Purchaser, substantially
in the form of Exhibit A hereto, which shall have attached thereto as of the
Sale Date the original of the Program Contract that shall be purchased by the
Purchaser from the Seller on such Sale Date.

         "AUTOMOBILES" means new and used automobiles and light-duty trucks, the
purchase of which the Obligors financed by the Program Contracts.

         "BUSINESS DAY" means any day other than a Saturday or a Sunday, or
another day on which banks in the States of Arkansas, Florida, or Tennessee are
required, or authorized by law, to close.

         "BUY RATE" means with respect to any Sold Program Contract the rate
specified as such in Seller's Contract Finance Program Guidelines in effect on
the Closing Date.

         "CLOSING DATE" means the first date on which the Seller shall sell
Contracts to the Purchaser pursuant to this Agreement.

         "CONTRACT FILE" means, as to each Contract, (a) the executed original
of the Contract, (b) the original credit application fully executed by each
Obligor, on Seller's customary form or on a form approved by Seller for such
application, (c) the credit information and reports in accordance with Seller's
customary practices (including proof that verification of income, employment and
residence have been completed by the Seller in accordance with its customary
practices), (d) the original certificate of title (or application therefor), or
other legal evidence of title with appropriate endorsement to Purchaser or
Purchaser's designee, (e) evidence of insurance required under this Agreement as
to the Financed Vehicle, (f) all applicable service contracts and credit life or
credit accident and disability insurance policies and agreements, (g) the
odometer statement fully completed and signed or other evidence of mileage of
the Financed Vehicle satisfactory to the Purchaser, (h) all applicable
assignments, and (i) any and all other documents and records that Seller shall
keep on file or in computer media, in accordance with its customary procedures,
relating to the origination, administration, collection and servicing of such
Contract or the related Obligor or Financed Vehicle.

         "CONTRACT RATE" means with respect to any Sold Program Contract, the
interest rate on such Sold Program Contract as disclosed as the APR.

         "DEALER" means a franchise automobile dealer or an independent
automobile dealer identified on Exhibit G attached hereto, or an Affiliate of
any such automobile dealer, who has entered into a Dealer Agreement with the
Seller that governs, among other things, the origination and sale to the Seller
of the Sold Program Contracts.

         "DEALER AGREEMENT" means an agreement between the Seller and a Dealer
setting forth the terms for the purchase of Contracts by the Seller.

                                      - 2 -

<PAGE>   4

         "DEBT" of a party means (a) indebtedness for borrowed money, (b)
obligations evidenced by bonds, debentures, notes or other similar instruments,
(c) obligations to pay the deferred purchase price of property or services, (d)
obligations as lessee under leases which have been or should be, in accordance
with generally accepted accounting principles, recorded as capital leases, (e)
obligations secured by any lien or security interest granted by a party, even
though such party has not assumed or become liable for the payment of such
obligations, (f) obligations under direct or indirect guaranties in respect of,
and obligations (contingent or otherwise) to purchase or otherwise acquire or
otherwise to ensure a creditor against loss in respect of, indebtedness or
obligations of others of the kinds referred to in clause (a) through (e) above,
and (g) liabilities in respect of unfunded vested benefits under plans covered
by the ERISA, as amended, and regulations promulgated thereunder.

         "ELECTRONIC CONTRACT INFORMATION" means, as to each Contract, the
applicant information provided by the applicant and retained on electronic
medium, all electronically transmitted documents and information provided by an
applicant to a Dealer, all of which may be retained and transmitted by
electronic means from Seller to Purchaser, and the following information with
respect to each such Contract: (a) the Amount Financed, (b) the Principal
Balance, (c) the amount of each monthly payment due from the Obligor, (d) the
APR (calculated in accordance with the Contract), (e) the Contract's Origination
Date, (f) the date on which in each month the scheduled payment is due, (g) the
Contract's original term in months, (h) the next payment due date, (i) the
number of days delinquent, if applicable, (j) the accrued and unpaid interest of
such Contract, (k) Dealer participation, if any, paid or to be paid to a Dealer,
(l) the late payment fee and NSF fee applicable to such Contract, (m) the
effective Buy Rate applicable to such Contract, (n) the credit quality and/or
classification of such Contract, in accordance with Seller's Contract Finance
Program Guidelines then in effect, and (o) such other information as may be
reasonably requested by the Purchaser to be transmitted to the Purchaser by the
Seller with respect to each such Contract.

         "ELIGIBLE PROGRAM CONTRACTS" means all Program Contracts that comply
with the representations and warranties set forth in Section 4.2 of this Sale
Agreement, including Program Contracts that, as of the Closing Date, have not
been funded and the Obligor's first payment is not yet due or Obligor's first
payment is included in the Contract File endorsed in favor of Purchaser.

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

         "FEE" means the amount designated as such in the Fee Schedule attached
as Exhibit B to this Sale Agreement and which is included as part of the
Purchase Price to be paid by the Purchaser to the Seller for the purchase of an
Eligible Program Contract pursuant to Sections 2.1 and 2.3 of this Agreement.

         "FEE SCHEDULE" means the schedule agreed to between the Seller and the
Purchaser setting forth the method for calculating the Purchase Price for each
Eligible Program Contract purchased

                                      - 3 -

<PAGE>   5

by the Purchaser from the Seller pursuant to this Agreement, in the form of
Exhibit B hereto, which schedule the Seller and the Purchaser may jointly agree
to modify from time to time.

         "FINANCED VEHICLE" means, with respect to a Contract, the Automobile,
together with all accessions thereto, securing the related Obligor's
indebtedness under such Contract.

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

         "INDEMNIFIED AMOUNTS" means any and all amounts necessary to indemnify
such Indemnified Party from and against any and all claims, actions, demands,
proceedings and suits brought by any Person other than a party to this
Agreement, whether or not groundless, and losses, damages, liabilities and
reasonable costs and expenses, including reasonable attorneys fees and
disbursements and court costs, arising out of or resulting from any such claim,
action, demand, proceeding or suit.

         "INDEMNIFIED PARTY" means any Person entitled to indemnification from
the Seller or the Purchaser pursuant to Section 8.1 or 8.2 of this Agreement.

         "INITIAL PERIOD" has the meaning set forth in Section 2.5 of this Sale
Agreement.

         "OBLIGOR" means, with respect to any Program Contract, the Persons
obligated to make payments in respect thereto.

         "OFFICER'S CERTIFICATE" means, with respect to any Person, a
certificate signed by the Chairman of the Board, the Chief Executive Officer,
the President, a Vice President, the Treasurer, the Secretary or any other duly
authorized officer of such Person.

         "PERSON" means an individual, partnership, corporation (including a
business trust), joint stock company, limited liability company, trust,
association, joint venture, Governmental Authority or any other entity of
whatever nature.

         "PRINCIPAL BALANCE" of a Program Contract means, on any date of
determination, the Amount Financed reduced by that portion of all prior payments
received by the Seller, the Purchaser or the Purchaser's assignee with respect
to such Program Contract allocable to principal as reflected on the records
maintained by the Seller or the Purchaser or the Purchaser's assignee, as the
case may be. In no event, shall the Principal Balance of a Program Contract
include administrative charges, charges for force placed insurance, late payment
fees, NSF fees or other charges that are not considered part of the Amount
Financed.

         "PROGRAM CONTRACTS" or "CONTRACTS" means Contracts originated by Seller
pursuant to Article II hereof and in accordance with the Seller's Contract
Finance Program Guidelines.

                                      - 4 -

<PAGE>   6

         "PURCHASED ASSETS" means (a) with respect to each Sold Program
Contract, all of the Seller's right, title and interest in and to (i) the Sold
Program Contract, including all payments on or with respect to such Sold Program
Contract after the Sale Date, (ii) the security interest in the Financed Vehicle
granted by the Obligor(s) to the Dealer pursuant to the Sold Program Contract
and assigned and transferred by the Dealer to the Seller and by the Seller to
the Purchaser pursuant to this Sale Agreement, (iii) any proceeds with respect
to the Sold Program Contract from recourse to the Dealer, if any, under the
related Dealer Agreement, (iv) any documents in the Contract File for such Sold
Program Contract, (v) the proceeds of any insurance policies, warranties,
service contracts and other agreements maintained with respect to the Financed
Vehicle and Sold Program Contract, (vi) all income and proceeds of the foregoing
or relating thereto, and (vii) with respect to each Sold Program Contract, all
of the Seller's rights against the Dealer as described in the Dealer Agreement.

         "PURCHASE PRICE" means the purchase price to be paid by the Purchaser
to the Seller for the purchase of an Eligible Program Contract pursuant to
Section 2.3 of this Agreement, determined in accordance with the Fee Schedule.

         "PURCHASER TERMINATION EVENT" See Section 7.2 of this Agreement.

         "PURCHASER'S CONTROL ACCOUNT" means an account established by the
Purchaser and the Seller at such bank as reasonably determined by the Purchaser,
in which the Purchaser shall deposit part of the Purchase Price, as specified in
Section 2.1(c) of this Agreement, for each Eligible Program Contract purchased
by the Purchaser from the Seller pursuant to this Agreement and from which the
Seller shall make payments of the purchase price for each such Eligible Program
Contract to the Dealer from which the Seller purchased such Eligible Program
Contract. The Purchaser's Control Account shall be in the name of the Purchaser,
and the Seller shall have authority to issued drafts on or authorize payments
from such account only subject to the specific approval of the Purchaser.

         "REPURCHASE PRICE" means with respect to any Sold Program Contract that
the Seller is obligated to repurchase, an amount equal to the sum of (a) the
cash Purchase Price paid by the Purchaser for the purchase of such Contract
pursuant to Section 2.3 of this Agreement, plus (b) any accrued but unpaid
interest with respect to such Program Contract, plus (c) amounts expended by the
Purchaser under the Sold Program Contract, and not reimbursed by the Obligor or
some other Person, for collection, repossession and other costs related to the
enforcement of Purchaser's security interest in the Financed Vehicle or
collection of amounts due and payable by the Obligor(s) pursuant to the Sold
Program Contracts, minus (d) all payments received by the Purchaser with respect
to such Program Contract and applied as a reduction of the principal balance
thereof.

         "SALE" means a sale of an Eligible Program Contract from the Seller to
the Purchaser pursuant to this Sale Agreement.

                                      - 5 -

<PAGE>   7

         "SALE AGREEMENT" or "AGREEMENT" means this Contract Sale Agreement,
including the Seller's Contract Finance Program Guidelines and all exhibits to
this Sale Agreement.

         "SALE ASSIGNMENT" or "ASSIGNMENT" means, with respect to any Sold
Program Contract, the assignment in the form of Exhibit A hereto.

         "SALE DATE" means the date on which each Sold Program Contract is sold
pursuant to this Sale Agreement.

         "SALES FINANCE COMPANY LICENSE" means a current license issued to the
Seller authorizing it to purchase and sell Contracts in each state in which such
license is required.

         "SCHEDULED TERMINATION DATE" means the date on which this Sale
Agreement is scheduled to terminate, as set forth in Section 2.5 of this Sale
Agreement.

         "SECURITIES" has the meaning ascribed thereto in Section 5.1(g).

         "SELLER'S CONTRACT FINANCE PROGRAM GUIDELINES" means the written
credit, underwriting and purchasing policies and procedures (including Seller's
published rate cards and program guidelines and such criteria as may be
established by the Seller for Dealers to be eligible to offer and sell Contracts
to the Seller) that are reasonably acceptable to the Purchaser and pursuant to
which the Seller shall purchase Contracts from Dealers. Seller's Contract
Finance Program Guidelines shall include, but not be limited to, minimum income
requirements for an Obligor, maximum debt to income and monthly payment to
income ratios for an Obligor, limitations on the amount to be advanced for the
purchase of a Financed Vehicle and related services and products, limitations on
the make, model, age, mileage and condition of a Financed Vehicle, minimum down
payment requirements, in total dollars and as a percentage of the purchase price
for a Financed Vehicle or the amount financed, minimum credit bureau and credit
scores, maximum and minimum payment terms, maximum and minimum interest rates,
maximum amounts to be paid as dealer finance income and/or dealer participation,
minimum and maximum acquisition fees and purchase discounts applicable to the
Seller's purchase of Contracts from Dealers, and such other criteria as the
Seller, with the approval of the Purchaser, shall deem necessary or appropriate.

         "SELLER TERMINATION EVENT"  See Section 7.1 of this Agreement.

         "SERVICER" means National Auto Finance Company, Inc. (the same entity
as the Seller herein and sometimes referred to herein as "NAFI").

         "SERVICING AGREEMENT" means that certain Servicing Agreement by and
between National Auto Finance Company, Inc., as the "Servicer," and the
Purchaser, as the "Owner," dated as of the date of this Agreement, as such may
be amended from time to time.

                                      - 6 -

<PAGE>   8

         "SOLD PROGRAM CONTRACT" means a Program Contract sold by the Seller to
the Purchaser pursuant to Section 2.1 of this Sale Agreement.

         "SUBSIDIARY" means, as to any Person, any corporation or other entity
of which securities or other ownership interests having ordinary voting power to
elect a majority of the Board of Directors or other Persons performing similar
functions are at the time directly or indirectly owned by such Person.

         "TERM" means the term of this Sale Agreement, as set forth in Section
2.5 of this Sale Agreement.

         "TERMINATION EVENT" means a Seller Termination Event or a Purchaser
Termination Event, as described in Sections 7.1 and 7.2 of this Agreement.

         "UCC" means the Uniform Commercial Code as in effect in the state where
the Program Contract is originated.

1.2      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 subsequent amendments thereto or 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." All section and article references shall be to sections and
articles in this Agreement.

                                   ARTICLE II
                       SALE OF ELIGIBLE PROGRAM CONTRACTS

2.1      SALE AND PURCHASE OF ELIGIBLE PROGRAM CONTRACTS.

         (a) During the term of this Agreement and subject to the terms and
conditions hereof, on each Business Day the Seller shall sell to the Purchaser,
and the Purchaser shall purchase from the Seller, all Eligible Program Contracts
that have been purchased by the Seller from Dealers. Seller shall begin selling,
and Purchaser shall begin purchasing, Eligible Program Contracts commencing on
the Closing Date.

         (b) On each Business Day, the Seller shall (i) identify the Eligible
Program Contracts to be sold by the Seller to the Purchaser pursuant to this
Agreement and (ii) deliver to the Purchaser, via overnight delivery service, (A)
a list of the Eligible Program Contracts to be sold

                                      - 7 -

<PAGE>   9

by the Seller to the Purchaser, containing such information with respect to each
such Contract as may be reasonably requested by the Purchaser, (B) an
acknowledgment from the Servicer, in such form as may be reasonably acceptable
to the Purchaser, stating that upon Purchaser's payment in full of the Purchase
Price the Servicer is holding the Contract File for each such Contract as agent
for the Purchaser, (C) the executed original of each such Contract, (D) an
executed Sale Assignment for each such Contract, in the form of Exhibit A
attached to this Agreement, (E) a copy of the application for the certificate of
title or other evidence of title relating to the Financed Vehicle, (F) a copy of
the Seller's internally prepared checklist for each such Contract indicating
that all required documentation and procedures with respect to the Seller's
purchase of each such Contract from a Dealer have been completed in accordance
with the Seller's Contract Finance Program Guidelines, (G) an invoice prepared
by the Seller for each such Contract setting forth a calculation of the Purchase
Price therefor in accordance with the Fee Schedule attached as Exhibit B hereto,
as such may be amended from time to time by the parties, and (H) with respect to
each such Contract, a copy of the check drawn on the Purchaser's Control Account
made payable to the Dealer from whom the Seller has purchased such Contract, or
such other written authorization, as may be reasonably acceptable to the
Purchaser and the drawee bank, for payment of funds from the Purchaser's Control
Account to the Dealer from whom the Seller has purchased such Contract, in the
amount of the purchase price to be paid by the Seller to the Dealer for the
purchase of such Contract.

         (c) Upon receipt of the documents and instruments required to be
delivered by the Seller to the Purchaser pursuant to Section 2.1(b) above, and
subject to the conditions set forth in Section 3.1 of this Agreement, the
Purchaser will consummate the purchase of each such Eligible Program Contract to
be sold by the Seller and will pay the Purchase Price for each such Eligible
Program Contract on the same Business Day, but in no event no later than the
next Business Day. Payment of the Purchase Price for each Eligible Program
Contract shall be made by (i) electronic funds transfer to the Purchaser's
Control Account in the amount of the purchase price to be paid by the Seller to
the Dealer for such Eligible Program Contract, as indicated by the information
provided by the Seller to the Purchaser pursuant to Section 2.1(b)(ii)(F) above,
and (ii) electronic funds transfer to such account as may be designated by the
Seller in writing to the Purchaser the Fee and additional amounts as the Seller
may be entitled pursuant to the Fee Schedule. In addition, simultaneous with the
transfer of funds to the Purchaser's Control Account as payment of part of the
Purchase Price for an Eligible Program Contract, the Purchaser will instruct the
drawee bank at which the Purchaser's Control Account is held to honor the
Seller's draft or other authorization for payment provided by the Seller to the
Purchaser pursuant to Section 2.1(b)(ii)(F) above. Notwithstanding the
provisions of this Section 2.1, Purchaser may decline to purchase an Eligible
Program Contract, if Purchaser determines in good faith that all of the
conditions precedent to the Purchaser's obligation to purchase such Eligible
Program Contract, as set forth in Section 3.1 of this Agreement, have not been
satisfactorily completed. The fact that the Purchaser shall have consummated the
purchase of an Eligible Program Contract shall not be deemed a waiver by the
Purchaser of any of the requirements of Section 3.1 of this Agreement or any
breach by the Seller of any covenant, representation or warranty with respect to
such Eligible Program Contract.

                                      - 8 -

<PAGE>   10

         (d) The sale by the Seller of each Eligible Program Contract shall be
without recourse by the Purchaser and its successors and assigns against Seller,
except to the extent specifically provided for in this Agreement.

         (e) Prior to each Sale Date, Purchaser shall have the right to review
the Electronic Contract Information for each Eligible Program Contract proposed
to be sold by Seller. Purchaser may reject any Contract that in Purchaser's good
faith judgment does not materially conform to any representation or warranty
contained in Article IV. Purchaser shall have the right, in its sole discretion,
to refuse to purchase any Eligible Program Contract for which a letter of
guaranty has been provided by a Dealer to any financing entity or any Eligible
Program Contract upon which any financing entity has exercised any rights or
asserted any claims against any Dealer bonds.

2.2      PURCHASER'S ACCESS TO AND REVIEW OF INFORMATION RELATING TO OFFERED
         PROGRAM CONTRACTS.

         For purposes of Purchaser's review of the Electronic Contract
Information for any Eligible Program Contract, Seller shall afford Purchaser,
its counsel, accountants, and other representatives full access to the
Electronic Contract Information related to such Eligible Program Contract and
the books and records of Seller relating to such Eligible Program Contract, and
to the extent necessary to evaluate the purchase of any Eligible Program
Contract, Seller shall cause its officers and employees to provide such
assistance and to furnish such reasonably available information in respect to
such Eligible Program Contracts as Purchaser may from time to time request.

2.3      CONVEYANCE OF SOLD PROGRAM CONTRACTS BY SELLER.

         (a) Following payment of the Purchase Price by the Purchaser and
execution and delivery of the Sale Assignment by the Seller, the ownership of
each Sold Program Contract specified in such Sale Assignment and the Purchased
Assets shall be vested in the Purchaser, and the Seller shall not take any
action inconsistent with such ownership and shall not claim any ownership
interest in any such Sold Program Contract.

         (b) The Seller shall indicate in its records that ownership of each
Sold Program Contract and the Purchased Assets is held by the Purchaser or its
assignee. In addition, the Seller shall respond to any inquiries with respect to
ownership of any Sold Program Contract by stating that it is no longer the owner
of such Sold Program Contract and that ownership of such Sold Program Contract
is held by Purchaser or its assignee. Seller agrees to hold in trust for
Purchaser any cash payments received in connection with a Sold Program Contract
and shall remit such funds by wire transfer or in the form received within
twenty-four (24) hours after their receipt to an account established by
Purchaser.

         (c) The Seller agrees that, from time to time, at its expense, it will
promptly execute and deliver all further instruments, notices and documents, and
take all further action, that may

                                      - 9 -

<PAGE>   11

be necessary or appropriate, or that the Purchaser may reasonably request, in
order to perfect, protect or more fully evidence the transfer of ownership of
the Sold Program Contracts to the Purchaser or its assignee or to enable the
Purchaser or its assignee to exercise or enforce any of its rights hereunder or
under any Sale Assignment. Without limiting the generality of the forgoing, the
Seller will promptly, upon the request of the Purchaser, execute and file or
cause to be filed such financing or continuation statements, certificates of
title or other title documentation in support of the lien of the Purchaser's
assignee in the related Automobile, or amendments thereto or assignments
thereof. The Seller hereby authorizes the Purchaser to file one or more
financing or continuation statements, and amendments thereto and assignments
thereof, relating to all or any of the Sold Program Contracts and proceeds
thereof without the signature of the Seller. Seller also hereby constitutes
Purchaser, its permitted successors and assigns, as Seller's true and lawful
attorneys, with full power of substitution, in the name of Seller or otherwise,
whether in relation to tangible or intangible property, to transfer all right,
title and interest in and to any Financed Vehicle, to execute and deliver any
and all certificates, instruments and other documents necessary to effect such
transfer of title, to endorse and collect any checks or other payments owed to
Purchaser under the Sold Program Contract, to discharge any liens on Financed
Vehicles and to modify or change, or request modification or change of, the loss
payee or additional insured endorsement with respect to any insurance policy on
a Financed Vehicle. Seller also grants Purchaser the right to use its name to
collect from Dealers refundable insurance and warranty premiums included in the
Amount Financed. Seller will provide Purchaser with its logo and any applicable
trademarks for use on documents seeking collection of these amounts. Seller
agrees that the foregoing powers are irrevocable notwithstanding any reason
whatsoever, including, without limitation, Seller's dissolution, merger,
consolidation or any other change in Seller. Seller will, at Purchaser's
reasonable request, execute appropriate separate instruments evidencing the
forgoing powers. Purchaser will indemnify and hold Seller harmless from any
claims or liabilities arising from Purchaser's exercise of the powers granted in
this Section. A copy of that Power of Attorney is attached hereto as Exhibit D.

2.4      INTENDED CHARACTERIZATION OF EACH TRANSACTION; GRANT OF SECURITY
         INTEREST IN FAVOR OF PURCHASER.

         It is the intention of the parties hereto that each transfer of Sold
Program Contracts to be made hereunder shall constitute a purchase and sale and
not a loan. In the event, however, that a court of competent jurisdiction were
to hold that the transaction evidenced hereby constitutes a loan and not a
purchase and sale, or a Governmental Authority determines that the Purchaser may
not purchase or acquire Program Contracts, it is the intention of the parties
hereto that this Sale Agreement shall constitute a security agreement under
applicable law and that the Seller shall be deemed to have granted to the
Purchaser as of the date hereof a first priority security interest in all of the
Seller's right, title and interest in, to and under each Sold Program Contract,
and all proceeds thereof.

                                     - 10 -

<PAGE>   12

2.5      TERM.

         The Term of this Agreement shall be for an initial period (the "Initial
Period") commencing on the date hereof and ending on the last day of the third
full calendar month following the Closing Date (such date, as such may be
extended pursuant hereto, is hereinafter referred to as the "Scheduled
Termination Date"). The Term of this Agreement shall be extended for an
additional three (3) calendar months, unless the Purchaser or the Seller shall
give written notice to the other party of its desire to terminate this Agreement
at least fifteen (15) days prior to a Scheduled Termination Date. Either the
Purchaser or the Seller shall be allowed to terminate this Agreement and its
respective obligations under this Agreement (not including its indemnification
obligations and such other obligations as shall survive termination of this
Agreement, as specifically set forth herein) upon the earlier of (i) the
Scheduled Termination Date, (ii) the passage of any applicable period of remedy
and notice pursuant to Article VII, or (iii) after the Initial Period, the
giving to the other party of at least thirty (30) days advance written notice of
its desire to terminate this Agreement.

                                   ARTICLE III
                      CONDITIONS PRECEDENT TO EFFECTIVENESS
                       OF SALE AGREEMENT AND TO EACH SALE

3.1      CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER.

         (a) The obligation of the Purchaser to purchase Eligible Program
Contracts from the Seller pursuant to this Agreement is subject to the
conditions precedent that the Purchaser shall have satisfactorily completed its
due diligence review of the Seller and its operations and that the Purchaser
shall have received the following, in form and substance satisfactory to the
Purchaser, by the Closing Date, or such other date as may be specified for the
receipt of such document or instrument by the parties. In the event Seller has
not provided the following as set forth herein, a Seller Termination Event shall
automatically occur.

                  (i) The articles of incorporation of the Seller certified, as
of a date no more than ten (10) days prior to the Closing Date, by the Secretary
of State of Delaware.

                  (ii) A good standing certificate from the State of Delaware,
dated no later than ten (10) days prior to the Closing Date, and within twenty
(20) days after the Closing Date ,from each state in which the Seller is
required to qualify to do business as a foreign corporation, each of which shall
be dated no later than thirty (30) days prior to the actual delivery date;

                  (iii) A list of states in which the Seller is qualified to
engage in business and has obtained a Sales Finance Company License or a
collection agency license, and a copy of each Sales Finance Company License and
collection agency license;

                                     - 11 -

<PAGE>   13

                  (iv) A power of attorney from the Seller, in substantially the
form of Exhibit D attached hereto, which power shall entitle the Purchaser
certain irrevocable rights to effect the transfer of Sold Program Contracts, to
effect the transfer and sale of the Financed Vehicles securing the Sold Program
Contracts, to effect the transfer and release of any lien on any such Financed
Vehicle, to recover proceeds under any Insurance Policy relating to the Sold
Program Contracts, and to effect the sale of and recovery of proceeds with
respect to the Purchased Assets;

                  (v) A certificate of the Secretary or Assistant Secretary of
the Seller (on which certificate the Purchaser may conclusively rely until such
time as it shall receive from the Seller a revised certificate meeting the
requirements of this subsection) certifying as of the Closing Date: (A) the
names and true signatures of the officers authorized on its behalf to sign this
Sale Agreement, the power of attorney and any Sale Assignment, (B) a copy of the
Seller's articles of incorporation and bylaws, and (C) a copy of the resolutions
of the board of directors of the Seller approving this Sale Agreement and the
transactions contemplated hereby;

                  (vi) An Officer's Certificate in the form of Exhibit E hereto;

                  (vii) Acknowledgment copies of proper financing statements
(Form UCC-1), duly filed with the appropriate Governmental Authorities, in
respect of Sold Program Contracts naming the Seller as the debtor and the
Purchaser as the secured party, or other similar instruments or documents as may
be necessary or, in the opinion of the Purchaser, desirable under the UCC of all
appropriate jurisdictions or any comparable law to perfect the Purchaser's
ownership interests in all Sold Program Contracts;

                  (viii) The favorable Opinion of Seller's outside counsel
satisfactory to the Purchaser, in substantially the form of Exhibit F attached
to this Agreement;

                  (ix)     The Seller's Contract Finance Program Guidelines;

                  (x) A list of all Dealers, separated by state in which each
Dealer is located, from which the Seller has purchased in any calendar month
during the period January 1999 through January 2000 greater than one-half
percent (0.5%) of the total dollar amount of Automobile retail installment sale
contracts purchased during any such month, which list shall include, for each
such calendar month during such period, the number of such Contracts purchased
and the dollar amount of such Contracts purchased;

                  (xi) A list and detailed description of material pending and
threatened litigation to which the Seller or any of its Affiliates or assets may
be subject;

                  (xii) A copy of the balance sheet and related statements of
income and retained earnings and changes in financial position of the Seller and
its consolidated Subsidiaries for the year ended December 31, 1998, and the
calendar quarter ended September 30, 1999, which either shall be audited
statements or shall be certified by the Chief Financial Officer of the Seller as
being

                                     - 12 -

<PAGE>   14

true and correct and fairly reporting the financial condition and results of
operations of the Seller and its consolidated Subsidiaries at and for the year
and calendar quarter, respectively, then ended in accordance with generally
accepted accounting principles consistently applied, and stating that the Seller
and its Subsidiaries are paying their debts as they mature, and neither the
Seller nor any Subsidiary has incurred debts beyond its ability to pay as they
mature; and

                  (xiii) Such other approvals, consents, opinions, documents and
instruments, as the Purchaser may reasonably request in writing prior to the
Closing Date, to be delivered by the Seller to the Purchaser at such time as
reasonably requested by the Purchaser.

Upon the receipt by the Purchaser of the items referred to in Paragraphs (i)
through (xiii) of this Section 3.1(a) that are required to be delivered by the
Seller to the Purchaser on or prior to the Closing Date, the Purchaser shall
notify the Seller in writing that the conditions precedent to the effectiveness
of this Sale Agreement have been satisfied and that this Sale Agreement is
effective as of the date and time specified in such notice.

         (b) (i) Each Sale from the Seller to the Purchaser shall be subject to
the following additional conditions precedent that on the related date of such
Sale, the Seller shall have certified in the related Sale Assignment executed by
the Seller and delivered to the Purchaser that (except as specifically disclosed
in such Sale Assignment or in writing and specifically consented to by the
Purchaser, in its sole discretion):

                  (A) The representations and warranties of the Seller set forth
in Sections 4.1 and 4.2 are true and correct on and as of such date, before and
after giving effect to such Sale and to the application of the proceeds
therefrom, as though made on and as of such date;

                  (B) No event has occurred which, with notice or the passage of
time, would constitute a Seller Termination Event;

                  (C) The Seller is in compliance with each of its covenants set
forth herein;

                  (D) The Scheduled Termination Date has not occurred; and

                  (E) The Program Contract described in the Assignment and to
which the Assignment relates is an Eligible Program Contract;

           (ii) The Seller shall have taken such other actions, including
delivery to the Purchaser of such approvals, consents, opinions, additional
information with respect to the Seller, documents and instruments, as the
Purchaser may reasonably request; and

           (iii) The Purchaser or the Servicer acting as agent for and on behalf
of the Purchaser shall have received from the Seller, in satisfactory form, the
following:

                                     - 13 -

<PAGE>   15

                  (A) The Contract File for each and every Sold Program
Contract;

                  (B) The Seller's internally prepared checklist indicating that
all required documentation and procedures with respect to the Seller's purchase
of the Eligible Program Contract from a Dealer have been completed in accordance
with the Seller's Contract Finance Program Guidelines;

                  (C) The buy data for each and every Sold Program Contract
setting forth all amounts paid (and with respect to Dealer participation, to be
paid) by the Seller to the Dealer, together with such other information as may
be reasonably requested by the Purchaser to evidence that the Dealers have been
paid in full (excepting Dealer participation, which may be paid in installments)
by the Seller for each and every Sold Program Contract;

                  (D) A power of attorney from each named lienholder, if any
other than Seller individually, on any Financed Vehicle, which power shall
entitle the Seller, with full right of substitution, certain irrevocable rights
to effect the transfer of the Financed Vehicle or any lien on the Financed
Vehicle; and

                  (E) (1) For the first Sale Date occurring after the
forty-fifth (45th) day after the end of a calendar quarter, a balance sheet and
related statement of income, in conformity with the requirements of Section
3.1(a)(xii), at and for the year-to-date period ending on the last day of the
calendar quarter immediately preceding such Sale Date; (2) within one hundred
twenty (120) days after the end of the Seller's fiscal year, commencing with the
fiscal year ending December 31, 1999, a balance sheet as at the end of such year
and the related statements of income and retained earnings and changes in
financial position for the Seller and its consolidated Subsidiaries for such
year, setting forth in each case in comparative form the figures for the
previous year, accompanied by an audit report of a firm of independent public
accountants of recognized national standing and membership of AICPA stating that
such firm has audited the financial statements of the Seller and its
consolidated Subsidiaries and issued its report thereon and that such audit was
made in accordance with generally accepted auditing standards and included such
tests of the accounting records and such other auditing procedures as such firm
considered necessary in the circumstances and that the financial statements of
the Seller and its consolidated Subsidiaries report the financial condition and
results of operations of the Seller and its consolidated Subsidiaries at and for
the years then ended in accordance with generally accepted accounting principles
consistently applied, without a qualification arising out of the scope of the
audit; and (3) with the delivery of each such financial statement, a certificate
from the Chief Financial Officer of the Seller stating that the Seller and its
Subsidiaries are paying their debts as they mature, neither the Seller nor any
Subsidiary has incurred debts beyond its ability to pay as they mature, and
there has not occurred any material adverse change in the financial condition or
results of operations of the Seller or any Subsidiary since the date of the most
recent financial statements delivered by the Seller to the Purchaser pursuant to
either Section 3.1(a)(xii) of this Agreement or this Section 3.1(b)(iii)(E).

                                     - 14 -

<PAGE>   16

                                   ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

4.1      GENERAL REPRESENTATIONS AND WARRANTIES OF SELLER.

         The Seller represents and warrants to the Purchaser, as of the date
hereof and on each subsequent date on which a Sale is made, as follows:

          (a) The Seller is a corporation duly organized, validly existing and
in good standing under the laws of Delaware, is duly qualified to do business
and is in good standing in every jurisdiction in which the nature of its
business requires it to be so qualified and which failure to qualify could have
a material adverse affect on Seller;

         (b) The Seller has the power and authority to own and convey all of its
properties and assets and to execute and deliver this Sale Agreement and to
perform the transactions contemplated hereby;

         (c) The execution, delivery and performance by the Seller of this Sale
Agreement and the transactions contemplated hereby, (i) have been duly
authorized by all necessary action on the part of the Seller, (ii) do not
contravene or cause the Seller to be in default under (A) the Seller's articles
of incorporation and bylaws, (B) any contractual restriction with respect to any
Debt of the Seller or contained in any indenture, loan or credit agreement,
lease, mortgage, security agreement, bond, note or other agreement or instrument
binding on or affecting the Seller or its property or (C) any law, rule,
regulation, order, writ, judgment, award, injunction or decree applicable to,
binding on or affecting the Seller or its property, and (iii) do not result in
or require the creation of any Adverse Claim;

         (d) This Sale Agreement has been, and each Sale Assignment executed and
delivered by the Seller will have been, when so executed and delivered, duly
executed and delivered on behalf of the Seller;

         (e) No consent of, or other action by, and no notice to or filing with,
any Governmental Authority or any other party, is required for the due
execution, delivery and performance by the Seller of this Sale Agreement or for
the perfection of or the exercise by the Purchaser of any of its rights or
remedies hereunder, each of which has been obtained and complete copies of which
have been provided to the Purchaser;

         (f) This Sale Agreement and each Sale Assignment delivered by the
Seller is (or will be if not executed and delivered as of the date hereof) the
legal, valid and binding obligation of the Seller enforceable against the Seller
in accordance with its respective terms;

         (g) There is no pending or threatened action, suit or proceeding,
against or affecting the Seller, its Affiliates, its officers, or the property
of the Seller, in any court or tribunal, or

                                     - 15 -

<PAGE>   17

before any arbitrator of any kind or before or by any Governmental Authority (i)
asserting the invalidity of this Sale Agreement, (ii) seeking to prevent the
sale and assignment of any Program Contract or the consummation of any of the
transactions contemplated thereby, (iii) seeking any determination or ruling
that might materially and adversely affect (A) the performance by the Seller of
this Sale Agreement, (B) the validity or enforceability of this Sale Agreement,
(C) any Program Contract or (4) the federal income tax attributes of the Sales.

         (h) No injunction, writ, restraining order or other order of any
material nature adverse to the Seller or the conduct of its business or which is
inconsistent with the due consummation of the transactions contemplated by this
Sale Agreement has been issued by a Governmental Authority;

         (i) No defaulted Debt exists under any instrument or agreement
evidencing, securing or providing for the issuance of Debt of the Seller;

         (j) The principal place of business and chief executive office of the
Seller are located at the address of the Seller set forth in the designated
space beneath its signature line in this Sale Agreement and, there are now no,
and during the past four months there have not been, any other locations where
the Seller is located (as that term is used in the UCC in the state of such
location) except that, with respect to such changes occurring after the date of
this Sale Agreement, as shall have been specifically disclosed to the Purchaser
in writing;

         (k) The legal name of the Seller is as set forth at the beginning of
this Sale Agreement and the Seller has not changed its name since February 1,
1997, and during such period, the Seller did not use, nor does the Seller now
use any trade-names, fictitious names, assumed names or "doing business as"
names other than "Auto Credit Clearing House" or "ACCH," except with respect to
such changes occurring after the date of this Sale Agreement, as shall have been
specifically disclosed to the Purchaser in writing;

         (l) The Seller is solvent and will not become insolvent after giving
effect to the transactions contemplated by this Sale Agreement; the Seller is
paying its debts as they mature; the Seller has not sold any Program Contract to
the Purchaser with intent to hinder, delay or defraud any entity to which the
Seller was, or may become, after the date that such transfer was made, indebted;
the Seller's sale of any Program Contract to the Purchaser has been and will be
made for reasonably equivalent value and fair consideration; the Seller has not
incurred debts beyond its ability to pay as they mature; and the Seller, after
giving effect to the transactions contemplated by this Sale Agreement, will have
adequate assets to conduct its business in the foreseeable future;

         (m) For federal income tax, reporting and accounting purposes, the
Seller will treat the sale of each Sold Program Contract sold pursuant to this
Sale Agreement as a sale, or absolute assignment, of its full right, title and
ownership interest in such Sold Program Contract to the

                                     - 16 -

<PAGE>   18

Purchaser, and the Seller has not and will not account for or treat the
transactions contemplated by this Sale Agreement in any other manner;

         (n) The Seller has and maintains all permits, licenses, authorizations,
registrations, approvals and consents of Governmental Authorities (including,
without limitation, Sales Finance Company Licenses, if any, necessary for (i)
the activities and business of the Seller as currently conducted and as proposed
to be conducted, (ii) the ownership, use, operation and maintenance of its
properties, facilities and assets, (iii) the performance by the Seller of this
Sale Agreement, and (iv) the performance by the Seller of its duties,
responsibilities and obligations under the Servicing Agreement;

         (o) The Seller has filed on a timely basis all tax returns (federal,
state, and local) required to be filed and has paid or made adequate provisions
for the payment of all taxes, assessments and other governmental charges due
from the Seller;

         (p) To the best knowledge of the Seller, each pension plan or profit
sharing plan to which the Seller is a party has been fully funded in accordance
with the obligations of the Seller set forth in such plan;

         (q) To the best knowledge of the Seller, there has not occurred any
event which has or is reasonably likely to have a material adverse effect on the
Seller's ability to perform its obligations under this Sale Agreement;

         (r) The consolidated balance sheet of the Seller and its consolidated
Subsidiaries as of December 31, 1998, and the related statements of income and
shareholders' equity of the Seller and its consolidated Subsidiaries for the
fiscal year then ended, which have been certified by an independent certified
public accountant, together with all quarterly reports with respect to completed
fiscal quarters occurring after such fiscal year until September 30, 1999,
copies of which have been furnished to the Purchaser, fairly present the
consolidated financial condition, business and operations of the Seller and its
consolidated Subsidiaries as at such dates and the consolidated results of
operations of the Seller and its consolidated Subsidiaries for the periods ended
on such dates, all in accordance with generally accepted accounting principles
consistently applied, and since September 30, 1999, there has not occurred any
material adverse change in the financial condition, business or operations of
the Seller or any Subsidiary, except as specifically disclosed by the Seller to
the Purchaser in a writing delivered prior to or simultaneously with its
execution and delivery of this Agreement;

         (s) The Seller has valid business reasons for selling its interests in
the Sold Program Contracts rather than obtaining a loan with the Sold Program
Contracts as collateral;

         (t) The Seller has not disclosed and will not disclose to any Dealer or
Obligor under an Eligible Program Contract the existence of any insurance which
has been or may be purchased by the Purchaser to protect its interests under the
Eligible Program Contract;

                                     - 17 -

<PAGE>   19

         (u) All information heretofore or hereafter furnished with respect to
the Seller to the Purchaser in connection with any transaction contemplated by
this Sale Agreement is and will be true and complete in all material respects
and does not and will not omit to state a material fact necessary to make the
statements contained therein not misleading.

4.2      REPRESENTATIONS AND WARRANTIES OF SELLER AS TO THE CONTRACTS.

         With respect to each Program Contract sold pursuant to this Sale
Agreement, Seller represents and warrants to Purchaser as follows on such Sale
Date:

         (a) Each Program Contract (i) arises from the sale of an Automobile as
to which delivery and acceptance has been fully performed by the Obligor and the
Dealer party thereto, (ii) arises from the normal course of the Dealer's
business, (iii) the Obligor of which is a natural person residing in any state,
(iv) the Obligor of which is not a government or a governmental subdivision or
agency, (v) the Obligor of which is not a minor and has full power and capacity
to enter into such Program Contract, (vi) is denominated and payable in dollars
in the United States, (vii) is in full force and effect and constitutes the
legal, valid and binding obligation of the Obligor in accordance with its terms,
(viii) is not subject to any dispute, litigation, counterclaim or defense, or
any offset, right of offset, or any exercisable right of rescission, (ix) has an
original term to maturity of not less than 24 and not more than 72 months, (x)
provides for equal monthly payments that will cause the Program Contract to
fully amortize during its term, (xi) has an APR of not less than the lesser of
(A) the rate as determined in accordance with the Seller's Contract Finance
Program Guidelines or (B) the maximum interest rate permitted by law with
respect to such Program Contract, (xii) together with the contract applicable
thereto, does not contravene any requirements of law applicable thereto, (xiii)
is a Program Contract with respect to which all required consents, approvals and
authorizations have been obtained, (xiv) is a Program Contract secured by a
purchase money security interest in the Financed Vehicle that has been recorded
or applied for in the name of the Seller and assigned to the Purchaser, which
security interest is or is reasonably expected to be in full force and effect,
in each case, subject to no prior or equal liens, claims or encumbrances, (xv)
was purchased by the Seller using and conforming to the Seller's Contract
Finance Program Guidelines, (xvi) requires the Seller to be named as loss payee
or beneficiary (as applicable) under an insurance policy with respect to the
Financed Vehicle related to such Program Contract and entitles the Seller to the
benefits of such insurance policy, (xvii) requires no additional action by the
Seller before becoming a valid and binding obligation of the Obligor thereunder,
enforceable against such Obligor in accordance with its terms, (xviii) relates
to a Financed Vehicle with respect to which the Obligor made at least the
minimum down payment as specified in the Seller's Contract Finance Program
Guidelines and in the form and manner described in the Seller's Contract Finance
Program Guidelines, including, but not limited to a down payment that is made
with the Obligor's own cash money and that is not borrowed, deferred (except for
deferred payments that are allowed by law and disclosed as deferred in the
Contract) or obtained as a cash advance on a credit card or other open line of
credit, and (xix) complies in all respects with the requirements of the
Purchaser's Contract Requirements set forth in Exhibit C attached to this
Agreement.

                                     - 18 -

<PAGE>   20

         (b) Each Program Contract was originated by a Dealer that had all
necessary licenses and permits to originate Program Contracts in the state where
such Dealer was located, was fully and properly executed by the parties thereto,
was purchased by the Seller from such Dealer under an existing Dealer Agreement
with the Seller, and was validly assigned by the Dealer to the Seller.

         (c) Each Program Contract contains customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
realization against the collateral security.

         (d) Each Program Contract was originated by a Dealer to an Obligor and
was sold by the Dealer to the Seller without any fraud or material
misrepresentation on the part of such Dealer.

         (e) Each Program Contract complied at the time it was purchased by the
Seller, including the sale of any related physical damage, credit life and
credit accident and death insurance, Gap or debt cancellation coverage, and any
extended service contract at the time it was originated or made, and as of the
Sale Date in all material respects with all requirements of applicable federal,
state and local laws and regulations, including usury laws, the federal
Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit
Reporting Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board's
Regulations B and Z, the Fair Debt Collection Practices Act, the Federal Trade
Commission Act, the Rees-Levering Act, and state adaptations of the National
Consumer Act and of the Uniform Consumer Credit Code, other consumer credit laws
and equal credit opportunity and disclosure laws and other applicable legal
requirements.

         (f) The Program Contract has not been satisfied, subordinated or
rescinded, and the related Financed Vehicle has not been released from the lien
granted by such Program Contract, in whole or in part.

         (g) No provision of any Program Contract has been waived, altered,
extended, revised or otherwise modified in any respect since its origination. No
Program Contract has been modified as a result of the Soldier's and Sailor's
Relief Act of 1940, as amended.

         (h) The title certificate for each Financed Vehicle either (A) shows
the Purchaser or the Seller or their nominee named as the original secured party
under the applicable Program Contract, or (B) has been applied for in the name
of the Purchaser or Seller or their nominee. If the Program Contract was
originated in a state in which a filing or recording is required of the secured
party to perfect a security interest in motor vehicles, such filing or recording
has been duly made to show the Purchaser or Seller or their nominee named as the
original secured party under the related Program Contract. Immediately after the
sale, transfer and assignment thereof to the Purchaser, each Program Contract
will be secured by an enforceable and perfected security interest in the
Financed Vehicle in favor of the Purchaser or Seller as secured party, which
security interest is prior to all other liens and security interests in such
Financed Vehicle (except, as to priority, for any lien for taxes, labor or
materials affecting an Automobile that attach to the Financed Vehicle after the
sale of the Program Contract) and which lien is not a preference under

                                     - 19 -

<PAGE>   21

Section 544 of the United States Bankruptcy Code. For purposes of this section,
Seller also represents and warrants that the lien, as applied for pursuant to
the requirements herein, will be obtained in a timely manner such as not to
adversely affect the interests of Purchaser in the Financed Vehicle.

         (i) To the best of Seller's knowledge, no liens or claims have been
asserted or filed for taxes, work, labor or materials relating to the Financed
Vehicle that are liens prior to, or equal or coordinate with, the security
interest in the Financed Vehicle granted by the applicable Program Contract, and
the Obligor has good and marketable title to the Financed Vehicle subject to no
liens other than the security interest under the Program Contract.

         (j) Upon sale hereunder, such Program Contract has not been sold,
transferred, assigned, offered for purchase, or pledged by the Seller to any
Person other than the Purchaser; the Seller has good and marketable title to
such Program Contract free and clear of all liens and rights of others claiming
by or through the Seller (other than the rights of the Obligor to the Financed
Vehicle thereunder) and, following the Sale Date, the Purchaser shall have good
and marketable title to such Program Contract, free and clear of all liens and
rights of others claiming by or through the Seller (other than the rights of the
Obligor to the Financed Vehicle thereunder).

         (k) Such Program Contract has not been purchased by the Seller from a
Dealer in, nor is it subject to the laws of, any jurisdiction under which the
sale, transfer and assignment of such Program Contract pursuant to this Sale
Agreement is unlawful, void or voidable. No agreement has been entered into with
any Obligor that prohibits, restricts or conditions the assignment of any
portion of the Program Contract.

         (l) There is only one originally executed contract for each Program
Contract.

         (m) Such Program Contract constitutes "chattel paper" as defined in the
UCC.

         (n) Such Program Contract has not been included in a "fleet sale"
(i.e., a sale to a single Obligor of more than five (5) vehicles).

         (o) All amounts due and payable by the Seller to the Dealer under the
Dealer Agreement with respect to such Program Contract have been paid, and no
Dealer has any rights in, or claims against, the Program Contract.

         (p) The Seller has indicated in its computer files that such Program
Contract has been sold to the Purchaser.

         (q) The Seller has done nothing to convey any right to any Person that
would result in such Person having a right to payments due under such Program
Contract or otherwise to impair the rights of the Purchaser in any Program
Contract or the proceeds thereof.

                                     - 20 -

<PAGE>   22

         (r) No Program Contract is assumable by another Person in a manner that
would release the Obligor thereof from such obligor's obligations to the
Purchaser with respect to such Program Contract.

         (s) No selection procedures adverse to the Purchaser have been utilized
in selecting such Program Contract from all other Program Contracts purchased
and/or owned by the Seller.

         (t) To the best of Seller's knowledge, as of the Sale Date, no Obligor
is subject to a current bankruptcy proceeding. As of the Sale Date, the Program
Contract is current with regard to payment and is not otherwise in default
according to its terms and conditions.

         (u) Each Program Contract is a fully amortizing simple interest
receivable that provides for level monthly payments which, if made when due,
shall fully amortize the Amount Financed over the original term.

4.3      SURVIVAL OF SELLER'S REPRESENTATIONS AND WARRANTIES

         It is understood and agreed that the representations and warranties set
forth in this Article IV, measured as of the dates made, shall survive the sale
of the Sold Program Contracts to the Purchaser and any assignment of a Sold
Program Contract by the Purchaser to any subsequent assignee and shall continue
so long as any Sold Program Contract shall remain outstanding with regard to
payment thereunder and shall remain subject to any outstanding terms and
conditions. The Seller acknowledges that the Purchaser may assign all of its
right, title and interest in and to the Sold Program Contracts and its right to
exercise the remedies created by this Article IV hereof to a subsequent
assignee. The Seller agrees that, upon such assignment, any subsequent assignee
may enforce directly, without joinder of the Purchaser, the repurchase
obligations of the Seller set forth in Section 4.4 with respect to breaches of
the representations and warranties set forth in Sections 4.1 and 4.2 hereof.

4.4      REPURCHASE OBLIGATIONS OF SELLER.

         (a) Upon discovery by Seller or Purchaser of (i) a breach of any
representation or warranty of Seller set forth in Section 4.1 or 4.2 hereof that
materially adversely affects the value of any Sold Program Contract, the
collectibility of payments or proceeds under or with respect to any Sold Program
Contract, the interest of Purchaser in any Sold Program Contract or the
properties or rights with respect to any Sold Program Contract conveyed by the
Seller to the Purchaser pursuant to this Agreement, (ii) a material breach of
any covenant or obligation of Seller with respect to any Sold Program Contract
set forth in Article II or Article V, or (iii) a material data error with
respect to a Sold Program Contract caused by or resulting from the boarding or
servicing of the Sold Program Contract prior to the Sale Date, the party
discovering such breach shall give prompt written notice to the other (the
Purchaser agrees to use reasonable efforts to provide the Seller any such
written notice within forty-five (45) days after the Purchaser shall have
learned of any such breach or circumstance), and Seller shall be obligated to
cure such breach in

                                     - 21 -

<PAGE>   23

all material respects within thirty (30) days after its receipt of such notice.
If such breach is not cured by Seller within such period, then, in such event,
within five (5) days after Purchaser's delivery to Seller of written demand,
Seller shall repurchase the related Sold Program Contract by delivering to or
upon the order of Purchaser an amount equal to the Repurchase Price.

         (b) Upon such repurchase and the payment of the Repurchase Price, the
Purchaser or any subsequent assignee shall execute and deliver an assignment and
the Purchaser or any subsequent assignee shall assign to Seller, all of the
Purchaser's or any subsequent assignee's right, title and interest in such
repurchased Sold Program Contract, without recourse, representation or warranty,
except as to the absence of liens, charges or encumbrances created by or arising
as a result of actions of the Purchaser or any subsequent assignee, other than
liens, charges or encumbrances created or arising out of this Sale Agreement.
The Purchaser and any subsequent assignee agree that it will promptly execute
and deliver and take all further action that may be necessary or appropriate, or
that the Seller may reasonably request, in order to perfect, protect or more
fully evidence the transfer of ownership of such Sold Program Contract to Seller
pursuant to Section 4.4(a). In the event Seller does not repurchase a Sold
Program Contract as required by subsection (a) above, any action taken by
Purchaser to sell or liquidate a Sold Program Contract or the related Financed
Vehicle in good faith and in a commercially reasonable manner shall be final and
conclusively binding upon Seller in determining the amount payable by Seller to
Purchaser under Section 4.4(a) hereof. If the Purchaser shall proceed, in good
faith, with the liquidation of a Sold Program Contract or the repossession
and/or liquidation of the related Financed Vehicle prior to the Seller's
repurchase of the Sold Program Contract as required by subsection (a) above,
then Seller shall reimburse the Purchaser for reasonable out-of-pocket expenses
incurred by the Purchaser in connection with such process, which, if not
included in the calculation of the Repurchase Price pursuant to its definition
as set forth in Section 1.1 hereof, shall be in addition to the Repurchase Price
payable by Seller.

                                    ARTICLE V
                         SPECIAL COVENANTS OF THE SELLER

5.1      ADDITIONAL COVENANTS OF SELLER.

         During the Term of this Sale Agreement, the Seller shall, unless the
Purchaser shall otherwise consent in writing:

         (a) Comply in all material respects with all applicable laws, rules,
regulations and orders with respect to it, its business and properties and all
Program Contracts;

         (b) Preserve and maintain its existence, rights, franchises and
privileges in the jurisdiction of its organization and all necessary Sales
Finance Company Licenses;

                                     - 22 -

<PAGE>   24

         (c) Cause to be delivered to the Purchaser within fifteen (15) days
after any extension of the Scheduled Termination Date (i) an Officer's
Certificate of the Seller in the form of Exhibit E, dated the date of such
delivery; (ii) a Secretary's Certificate of Seller in the form required by
Section 3.1(a)(v) hereof, dated the date of such delivery; and (iii) an opinion
of counsel, in form and substance satisfactory to the Purchaser, reaffirming as
of the date of its delivery the opinion of counsel with respect to the Seller
and delivered to the Purchaser on the Closing Date pursuant to Section
3.1(a)(viii) hereof;

         (d) Furnish, or cause to be furnished, to the Purchaser, as soon as
available the financial statements of Seller required to be delivered pursuant
to Section 3.1(b)(iii)(E) of this Agreement;

         (e) Promptly after the occurrence thereof, provide written notice to
the Purchaser of any pending or threatened action, suit or proceeding of a type
described in Section 4.1(g);

         (f) As soon as possible and in any event within five (5) days after the
occurrence of a Seller Termination Event (including, without limitation, a
material adverse change in the financial condition of the Seller) or each event
which, with the giving of notice or lapse of time or both, would constitute a
Seller Termination Event, the statement of an officer of the Seller setting
forth complete details of such Seller Termination Event and the action which the
Seller has taken, is taking and proposes to take with respect thereto;

         (g) Promptly provide and verify the accuracy of any information
concerning the Seller required for any offering document with respect to the
sale of asset-backed securities backed by the Sold Program Contracts (the
"Securities"), which may include information relating to the Seller and its
operations in connection with the origination of Program Contracts, and such
information may be published in such offering documents and relied upon by the
Purchaser and the assignee of the Purchaser;

         (h) Acquire, maintain, and provide to the Purchaser such information as
the Purchaser may reasonably require (at least semi-annually) from time to time
regarding any Dealer whose Automobile sales are financed or are to be financed
by Program Contracts which are sold or to be sold hereunder and shall represent
that such information is, to the best knowledge of the Seller, true and correct.
To the extent Seller has the right, by agreement or otherwise, to inspect or
audit the books and records of any Dealer, the Seller shall allow the Purchaser,
at its expense, to exercise such right on the Seller's behalf;

         (i) Maintain, at its own expense, with responsible insurance companies
such insurance on such of its properties, in such amounts and against such risks
as is customarily maintained by similar businesses. No provision of this Section
5.1(i) requiring insurance shall relieve the Seller from its duties and
obligations as set forth in this Sale Agreement. The Seller shall be deemed to
have complied with this provision, in whole or in applicable part, if one of its
Affiliates has such applicable policy or policies and, by the terms thereof, the
coverage afforded thereunder extends

                                     - 23 -

<PAGE>   25

to the Seller. The Seller shall, upon the request of the Purchaser, file with
the Purchaser a list of the insurance then in effect, stating the names of the
insurance companies, the amounts of the insurance, the dates of the expiration
thereof, and the properties and risks covered thereby. Each policy required by
this Section 5.1(i) shall not be canceled or modified in a materially adverse
manner without ten (10) days' prior written notice to the Purchaser;

         (j) Promptly, deliver to the Purchaser, from time to time, such other
information, documents, records or reports respecting the Program Contracts or
the condition or operations, financial or otherwise, of the Seller or any of its
Subsidiaries, as the Purchaser may, from time to time, reasonably request
(including, but not limited to, such information, documents, records or reports
which the Purchaser is requested or required by applicable law to provide to a
third party, including any Governmental Authority).

5.2      RIGHT OF PURCHASER TO AUDIT SELLER'S OPERATION.

         Upon receipt of seven (7) days' prior written notice, Seller shall
permit Purchaser to audit Seller's operations at Seller's locations. Such audit
shall be limited to a review of those items that relate to this Agreement. Such
audit shall be during Seller's normal business hours. All of Purchaser's costs
for such audit shall be borne by Purchaser, unless the results of such audit
shall indicate that a Seller Termination Event has occurred which at the time of
such audit was known by the Seller and with respect to which the Purchaser has
not received notice, in which event the Seller shall pay the Purchaser's costs
of such audit. In lieu of an audit at the Seller's location, Purchaser may, from
time to time, request that information, documents or records required pursuant
to such audit be sent to Purchaser.

5.3      OBLIGATION OF SELLER TO PRODUCE CONTRACT FORMS TO PURCHASER.

         Seller shall provide Purchaser with copies of all contracts, agreements
or other forms that will be included in the Contract File or included in the
Purchased Assets. Purchaser shall have the right to approve all such forms
before its purchase of any Program Contracts under this Agreement.

5.4      DUTIES OF SELLER WHILE ACTING AS SERVICER; SELLER SHALL PROVIDE
         ASSISTANCE WITH RESPECT TO CONVERSION OF DATA.

         Seller shall be responsible, in its capacity as Servicer under the
Servicing Agreement, for retaining and maintaining, as custodian and bailee for
the Purchaser, the Electronic Contract Information and Contract Files with
respect to the Sold Program Contracts (not including the original Contract and
title certificate for each Sold Program Contract, which shall be delivered by
the Seller to the Purchaser pursuant to Section 2.1(b) of this Agreement).
Seller shall use its best efforts to cure all documentation exceptions and
deficiencies with respect to the Sold Program Contracts, including obtaining
missing title certificates and correcting lienholder and owner information on
title certificates, and further shall use its best efforts to (a) correct all
data errors

                                     - 24 -

<PAGE>   26

with respect to the Sold Program Contracts caused by or resulting from its
receipt, transmission, maintenance, modification, updating, processing and use
of the Electronic Contract Information during such time as it has acted as the
Servicer of the Sold Program Contracts pursuant to the Servicing Agreement and
(b) correct all material errors and mistakes in the conversion of electronic
data with respect to the Sold Program Contracts to the Purchaser's, or its
designated servicer's, servicing system, if and when any such conversion shall
take place (Seller understands and agrees that its failure to have collection
agency licenses in all jurisdictions in which it purchases Contracts from
Dealers may prevent it from acting as the Servicer under the Servicing Agreement
for some Sold Program Contracts, in which event the Seller shall deliver the
entire Contract File and the Electronic Contract Information for such Sold
Program Contracts to the Purchaser or its designated servicer), except for
errors or mistakes caused by the negligence, recklessness, bad faith or
misconduct of the Purchaser or its designated servicer or any of their
representatives or employees. Purchaser may require Seller to repurchase at the
Repurchase Price, as more particularly described in Section 4.4 of this
Agreement, any Sold Program Contract that is subject to any material data error
caused by or resulting from any acts or omissions of the Seller. Except for the
specific obligations of Seller set forth in this Section 5.4, Seller shall have
no obligation to the Purchaser for the reimbursement of costs incurred by the
Purchaser in connection with the conversion of electronic data with respect to
the Sold Program Contracts to Purchaser's, or its designated servicer's,
servicing system.

                                   ARTICLE VI
                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

6.1      GENERAL REPRESENTATIONS AND WARRANTIES OF PURCHASER.

         The Purchaser represents and warrants to the Seller as of the date
hereof and on each subsequent date on which a Sale is made, as follows:

         (a) Purchaser is a corporation duly organized, validly existing and in
good standing under the laws of Delaware, with the power and authority to own
its properties and to conduct its business.

         (b) Purchaser is duly qualified to do business, in good standing and
possesses all of the necessary licenses and approvals in all jurisdictions where
failure to do so would adversely affect its ability to perform its obligations
under this Sale Agreement or the enforceability or collectibility of the Sold
Program Contracts.

         (c) Purchaser has the power, authority and legal right to execute and
deliver this Sale Agreement and to carry out its terms, and the execution,
delivery and performance of this Sale Agreement has been duly authorized by
Purchaser by all necessary corporate action.

                                     - 25 -

<PAGE>   27

         (d) This Sale Agreement constitutes a legal, valid and binding
obligation of Purchaser enforceable against Purchaser in accordance with its
terms.

         (e) The execution, delivery and performance of this Sale Agreement, the
consummation of the transactions contemplated hereby and the fulfillment of the
terms hereof will not conflict with, result in any breach of or constitute (with
or without notice or lapse of time) a default under the articles of
incorporation or bylaws of the Purchaser, or conflict with or breach any of the
terms or provisions of, or constitute (with or without notice or lapse of time)
a default under, any indenture, agreement, mortgage, deed of trust or other
instrument to which Purchaser is a party or by which Purchaser is bound or to
which any of its properties are subject, or result in the creation or imposition
of any lien upon any of its properties pursuant to the terms of any such
indenture, agreement, mortgage, deed of trust or other instrument, or constitute
a violation of any law, order, rule or regulation applicable to Purchaser or its
properties of any Governmental Authority having jurisdiction over Purchaser or
any of its properties.

         (f) There are no proceedings or investigations pending, or, to
Purchaser's knowledge, threatened, before any Governmental Authority having
jurisdiction over Purchaser or any of its properties: (i) asserting the
invalidity of this Sale Agreement, (ii) seeking to prevent the consummation of
any of the transactions contemplated by this Sale Agreement, or (iii) seeking
any determination or ruling that might materially and adversely affect the
performance by Purchaser of its obligations under, or the validity or
enforceability of, this Sale Agreement.

                                   SECTION VII
                     SELLER AND PURCHASER TERMINATION EVENTS

7.1      SELLER TERMINATION EVENTS.

         For purposes of this Agreement, each of the following shall constitute
a Seller Termination Event (each, a "Seller Termination Event") hereunder:

         (a) Any failure by the Seller to deliver to or upon the order of
Purchaser any proceeds or payment required to be so delivered under the terms of
this Agreement, which failure continues for a period of three (3) Business Days
after discovery by the Seller or written notice of such failure given to Seller
by Purchaser;

         (b) Failure on the part of the Seller duly to observe or perform in any
material respect any other covenant or agreement of the Seller set forth in this
Agreement, which failure continues for a period of ten (10) Business Days after
discovery by the Seller or written notice of such failure given to the Seller by
Purchaser;

         (c) The entry of a decree or order by a court or agency or supervisory
authority having jurisdiction in the premises for the appointment of a trustee
in bankruptcy, conservator, receiver,

                                     - 26 -

<PAGE>   28

or liquidator for the Seller in any bankruptcy, insolvency, readjustment of
debt, marshaling of assets and liabilities or similar proceeding or for the
winding up or liquidation of its affairs, and the continuance of any such decree
or order unstayed and in effect for a period of 60 consecutive days;

         (d) The consent by the Seller to the appointment of a trustee in
bankruptcy, conservator, or receiver or liquidator in any bankruptcy,
insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceeding of or relating to any one or more Seller or relating to all
or substantially all of its property; or the Seller shall admit in writing its
inability to pay its debts generally as they become due, file a petition to take
advantage of any applicable insolvency or reorganization statute, make an
assignment for the benefit of its creditors or voluntarily suspend payment of
its obligations; or any judgment or order for the payment of money in excess of
$25,000 in the aggregate against the Seller shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of thirty (30) days
or more;

         (e) Any representation, warranty, covenant or statement of 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, and within ten (10) Business Days after
the Seller has learned of such circumstance or after written notice thereof
shall have been given to the Seller by Purchaser, the circumstance or condition
in respect of which such representation, warranty, covenant or statement was
incorrect shall not have been eliminated or otherwise cured to the satisfaction
of Purchaser;

         (f) A material number of Sold Program Contracts (five percent (5%) or
more) purchased by the Purchaser from the Seller during any calendar month fail
to comply, in any material respect, with the Seller's Contract Finance Program
Guidelines or the Seller's representations and warranties with respect thereto
set forth in Section 4.2 of this Agreement (as determined by the Purchaser, in
its reasonable judgment, from a review of a random sample, consisting of a
statistically significant number, of Sold Program Contracts during such calendar
month), and within ten (10) days after the Seller has learned of such
circumstance or after written notice thereof shall have been given to the Seller
by Purchaser, the cause for such noncompliance shall not have been eliminated or
otherwise cured to the reasonable satisfaction of the Purchaser, or in the
alternative, if reasonably recommended by the Purchaser, the Seller shall have
refused to accept a reduction in the amount of the Fee to be paid by the
Purchaser for the future purchase of Eligible Program Contracts pursuant to this
Agreement;

         (g) A deterioration has taken place in the quality of the Sold Program
Contracts purchased by the Purchaser from the Seller pursuant to this Agreement
or in the collectibility thereof, which the Purchaser, in its reasonable
judgment, determines to be material and the Seller is unwilling, within ten (10)
days after receipt of written notice thereof, to revise the Seller's Contract
Finance Program Guidelines and/or reduce the Purchase Price applicable to future
sales of Contracts pursuant to this Agreement to the extent recommended by the
Purchaser to cover the

                                     - 27 -

<PAGE>   29

financial risk, exposure and/or loss reasonably anticipated to be incurred by
the Purchaser as a result of such deterioration;

         (h) The Purchaser shall reasonably determine that it will suffer
material economic or financial harm from its future purchase of Eligible Program
Contracts from the Seller pursuant to this Agreement, and the Seller is
unwilling, within fifteen (15) days after receipt of written notice thereof, to
revise the Seller's Contract Finance Program Guidelines and/or reduce the
Purchase Price applicable to future sales of Contracts pursuant to this
Agreement to the extent recommended by the Purchaser to eliminate the economic
or financial harm that will be realized by the Purchaser from its future
purchase of Contracts pursuant to this Agreement;

         (i) The Purchaser and the Seller are unable to mutually agree upon the
terms and provisions of the Seller's Contract Finance Program Guidelines, and
the Purchaser shall have provided the Seller with at least ten (10) days' prior
written notice of its desire to terminate this Agreement because of such event
or circumstance; or

         (j) Seller does not offer for sale to the Purchaser during any full
calendar month at least one hundred (100) Eligible Program Contracts.

7.2      PURCHASER TERMINATION EVENTS.

         Any of the following acts or occurrences shall constitute a Purchaser
Termination Event (each, a "Purchaser Termination Event"):

         (a) So long as no Seller Termination Event has occurred or no notice of
the termination of this Agreement shall have been given by the Purchaser to the
Seller pursuant to Section 7.3 of this Agreement, any failure by Purchaser to
purchase Eligible Program Contracts on each applicable Sale Date or to pay any
amounts due pursuant to this Agreement, which failure continues for a period of
three (3) Business Days after discovery by Purchaser or written notice of such
failure given to Purchaser by Seller;

         (b) Failure on the part of Purchaser duly to observe or perform in any
material respect any other covenant or agreement of Purchaser set forth in this
Agreement, which failure continues for a period of ten (10) Business Days after
discovery by Purchaser or written notice of such failure given to Purchaser by
Seller.

         (c) The entry of a decree or order by a court or agency or supervisory
authority having jurisdiction in the premises for the appointment of a trustee
in bankruptcy, conservator, receiver, or liquidator for Purchaser in any
bankruptcy, insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceeding or for the winding up or liquidation of its
affairs, and the continuance of any such decree or order unstayed and in effect
for a period of 60 consecutive days;

                                     - 28 -

<PAGE>   30

         (d) The consent by Purchaser to the appointment of a trustee in
bankruptcy, conservator, or receiver or liquidator in any bankruptcy,
insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceeding of or relating to Purchaser or relating to all or
substantially all of its property; or Purchaser shall admit in writing its
inability to pay its debts generally as they become due, file a petition to take
advantage of any applicable insolvency or reorganization statute, make an
assignment for the benefit of its creditors or voluntarily suspend payment of
its obligations; or any judgment or order for the payment of money in excess of
$25,000 in the aggregate against the Purchaser shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of thirty (30) days
or more

         (e) Any representation, warranty, covenant or statement of Purchaser
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, and within ten (10) Business Days after
Purchaser shall have learned of such circumstance or after written notice
thereof shall have been given to Purchaser by a Seller, the circumstance or
condition in respect of which such representation, warranty, covenant or
statement was incorrect shall not have been eliminated or otherwise cured to the
satisfaction of Seller;

         (f) The Seller and the Purchaser are unable to mutually agree upon the
terms and provisions of the Seller's Contract Finance Program Guidelines, and
with respect to any of such matters, the Seller shall have provided the
Purchaser with at least ten (10) days prior written notice of its desire to
terminate this Agreement because of such event or circumstance;

         (g) Purchaser does not purchase from the Seller during a calendar month
at least ninety eight percent (98%) of the Eligible Program Contracts (which
satisfy the requirements for purchase by the Purchaser pursuant to this
Agreement) offered for sale during such month by the Seller pursuant to this
Agreement.

7.3      RIGHTS UPON SELLER TERMINATION EVENT OR PURCHASER TERMINATION EVENT;
         LIMITATION OF DAMAGES.

         (a) If a Seller Termination Event or Purchaser Termination Event shall
occur and be continuing, so long as such Termination Event has not been cured or
waived, after the expiration of any applicable cure period, the party having the
right to terminate this Agreement (the "Terminating Party") can, by notice given
in writing to the other party, immediately terminate this Agreement. Such right
to terminate this Agreement, together with all other rights and remedies from
time to time conferred upon or reserved by Seller or Purchaser, are cumulative,
and none is intended to be exclusive of another or any right or remedy which
Seller or Purchaser may have at law or in equity; provided, however, with
respect to any Sold Program Contract purchased by the Purchaser pursuant to this
Agreement, if there shall be a breach of any representation or warranty with
respect to such Sold Program Contract set forth in Section 4.1 or 4.2 of this
Agreement, or if Seller shall be in default of any covenant or obligation with
respect to such Sold Program Contract set forth in Article II of this Agreement,
then the sole remedy of the Purchaser

                                     - 29 -

<PAGE>   31

with respect to such default or breach shall be to require Seller to repurchase
such Sold Program Contract pursuant to Section 4.4 of this Agreement; provided,
however, the preceding provision is not intended to prohibit the Purchaser from
terminating this Agreement because of a Seller Termination Event described in
Section 7.1 of this Agreement or seeking recourse against Seller for
indemnification pursuant to Section 8.1 of this Agreement. No delay or omission
in insisting upon the strict observance or performance of any provision hereof
or in exercising any right or remedy shall be construed as a waiver or
relinquishment of such provision, nor shall it impair such right or remedy.
Every right and remedy may be exercised from time to time and as often as deemed
expedient.

         (b) If either party shall bring a claim, action, demand, suit or
proceeding against the other party because of a breach or default of any term or
provision of this Sale Agreement, not including a claim for indemnification
pursuant to Section 8.1 or 8.2 of this Sale Agreement, the nondefaulting party's
measure of damages shall be limited as follows:

                  (i) With respect to a claim by the Purchaser that there has
         occurred a breach of a representation or warranty with respect to a
         Sold Program Contract set forth in Section 4.1 or 4.2 of this Sale
         Agreement or a default by the Seller of a covenant or obligation with
         respect to a Sold Program Contract set forth in Article II of this Sale
         Agreement, the Purchaser shall be allowed to recover from the Seller
         with respect to Sold Program Contract the amounts set forth in Section
         4.4 of this Sale Agreement, plus reasonable attorneys' fees and
         disbursements and related litigation expenses incurred by the Purchaser
         to enforce its rights and remedies under this Sale Agreement;

                  (ii) With respect to any other claim by the Purchaser against
         the Seller, the Purchaser shall be allowed to recover from the Seller
         its actual monetary loss directly incurred as a result of such default
         or breach by the Seller, not to exceed recissionary damages calculated
         in accordance with Section 4.4 of this Sale Agreement, plus reasonable
         attorneys' fees and disbursements and related litigation expenses
         incurred by the Purchaser to enforce its rights and remedies under this
         Sale Agreement;

                  (iii) With respect to a claim by the Seller against the
         Purchaser that there has occurred a breach or default by the Purchaser
         of any covenant, obligation, representation or warranty set forth in
         this Sale Agreement, the Seller shall be allowed to recover from the
         Purchaser the additional costs, expenses and financing costs (equal to
         (A) the difference between the Fees payable by the Purchaser to the
         Seller pursuant to this Agreement and similar fees payable by a third
         party to the Seller to purchase Eligible Program Contracts pursuant to
         an agreement similar to this Sale Agreement or (B) the difference
         between the Seller's actual cost of financing the ownership of Eligible
         Program Contracts and Six and 50/100 Percent (6.50%) per annum)
         actually incurred by the Seller as the result of such breach or
         default, plus reasonable attorneys' fees and disbursements and related
         litigation expenses incurred by the Seller to enforce its rights and
         remedies under this Sale Agreement. Additional costs, expenses and
         financing costs actually incurred by the Seller

                                     - 30 -

<PAGE>   32

         shall be based upon the actual number of Eligible Program Contracts
         purchased by the Seller from Dealers during the period beginning on the
         date of the Purchaser's breach, after taking into account all
         applicable cure periods, and ending on the Scheduled Termination Date;
         and

                  (iv) Neither the Purchaser nor the Seller shall be liable to
         each other for any lost profits or loss of business or any special,
         speculative, punitive, indirect, exemplary, punitive, consequential or
         incidental damages, however caused or however based upon any theory of
         liability.

7.4      WAIVER OF DEFAULTS AND TERMINATION EVENTS.

         Following the occurrence of a Seller Termination Event or Purchaser
Termination Event, the Terminating Party may, by written notice to the other
party, waive such Termination Event. Upon any such waiver, such Termination
Event shall cease to exist, and any default arising therefrom shall be deemed to
have been remedied for every purpose of this Agreement. No such waiver shall
extend to any subsequent or other Termination Event or default or impair any
right consequent thereon except to the extent expressly so waived.

                                  ARTICLE VIII
                                 INDEMNIFICATION

8.1      INDEMNIFICATION BY SELLER.

         Without limiting any other rights that an Indemnified Party may have
hereunder or under applicable law, and subject to Seller's right to cure as set
forth in this Agreement, the Seller hereby agrees to pay on demand to the
Purchaser and its parent, Subsidiaries and Affiliates and their directors,
officers, employees and authorized agents Indemnified Amounts which may be
imposed on, incurred by or asserted against an Indemnified Party as a result of
any claim, action, demand, proceeding or suit, whether or not groundless, that
in any way arises out of or results from:

         (a) Use by the Seller of proceeds of any Sale or in respect of any Sold
Program Contract;

         (b) Reliance by the Purchaser on any representation or warranty made or
deemed made by the Seller (or any of its officers) under or in connection with
this Sale Agreement;

         (c) Any material breach by Seller of its representations and
warranties, covenants or obligations, or material failure by the Seller to
comply with any term, provision or covenant, contained in this Sale Agreement or
any agreement executed in connection with this Sale Agreement;

                                     - 31 -

<PAGE>   33

         (d) The failure to vest and maintain vested in the Purchaser, or to
transfer to the Purchaser, legal and equitable title to and ownership of the
Program Contracts that are, or are purported to be, Sold Program Contracts,
together with all proceeds in respect thereof, free and clear of any Adverse
Claim (except as permitted hereunder) whether existing at the time of the
proposed sale of such Program Contract or at any time thereafter, and without
limitation to the remedies set forth in Section 4.4; or

         (e) Any act or omission by Seller or its agents, officers or employees
or controlled Affiliates or by any Dealer arising out of or relating to the
purchase by the Seller of any Contract, the sale by the Dealer of any Contract
or the sale by the Dealer of a Financed Vehicle or related product or service to
an Obligor, which results in a material loss by or claim against the Purchaser,
including any claim by an Obligor or Governmental Authority that the form, terms
or provisions of the Contract fail to comply with the requirements of applicable
federal and state laws.

If a claim for indemnification is tendered by an Indemnified Party to the
Seller, the Seller may, at its option, repurchase the Program Contracts involved
in such claim in accordance with the terms of Section 4.4 of this Agreement and
the Repurchase Price for such Program Contracts actually paid by the Seller to
the Purchaser shall be taken into account in determining the amount of the loss
that the Indemnified Party has incurred as a result of such claim. The Seller
acknowledges that the Purchaser may assign its rights of indemnity granted
hereunder to an assignee and upon such assignment, such assignee shall have all
rights of the Purchaser hereunder and may in turn assign such rights. The Seller
agrees that, upon such assignment, such assignee may enforce directly, without
joinder of the Purchaser, the indemnities set forth in this Section.

8.2      INDEMNIFICATION BY PURCHASER.

         Purchaser shall indemnify and hold harmless Seller and its parent,
Subsidiaries, Affiliates and their directors, officers, employees and authorized
agents against any claim, action, demand, proceeding and suit brought by any
Person other than the Seller, whether or not groundless, and against every
liability, damage and cost (including reasonable legal fees and related costs),
arising out of, directly or indirectly, from any such claim, action, demand,
proceeding or suit, resulting from, arising out of or relating to: (i) any
material breach by Purchaser of its representations and warranties, covenants or
obligations contained in this Agreement, or (ii) any act or omission by
Purchaser or its agents, officers or employees or controlled Affiliates (not
including acts and omissions of the Seller while it is acting as servicer of the
Sold Program Contracts pursuant to the Servicing Agreement) with respect to the
collection, application or administration of payments under any Sold Program
Contract, the repossession of any Financed Vehicle that secures a Sold Program
Contract, or the exercise of any rights or pursuit of claims against any Obligor
under any Sold Program Contract, which results in a material loss by or claim
against the Seller.

                                     - 32 -

<PAGE>   34

8.3      INDEMNIFICATION GENERALLY.

         (a) A claim for indemnification pursuant to this Article shall be made,
if at all, within five (5) years after the applicable Sale Date notwithstanding
any statute of limitations that may specify a shorter period, the provisions of
which are hereby waived.

         (b) As a condition of any claim for indemnification under this Article,
the indemnifying party shall be given timely notice of any claim or demand as to
which indemnification may be claimed and shall have the right, together with the
Indemnified Party, to participate in the defense, compromise or closing thereof
through the indemnifying party's own attorney and at the indemnifying party's
expense.

         (c) If a party has received indemnity payments hereunder with respect
to a Contract and thereafter receives payments from third parties so as to fully
recoup its losses with respect to such Contract, the Indemnified Party shall
remit any excess payments to the indemnifying party to the extent of the
indemnification payments previously made by the indemnifying party and subject
to the rights of the Obligor.

                                   ARTICLE IX
                CONFIDENTIALITY; SELLER NOT TO SOLICIT OBLIGORS;
                   NO SOLICITATION OF OTHER PARTY'S EMPLOYEES

9.1      CONFIDENTIALITY COVENANT.

         Except to the extent required by applicable law and upon satisfaction
of the procedures set forth in this Section 9.1 or unless the parties hereto
shall shall mutually agree otherwise, the parties (including their directors,
officers, employees and counsel) agree to keep confidential the existence and
terms of this Sale Agreement and all proprietary information relating to each
other's business, including, but not limited to, credit underwriting criteria,
products, customer lists, pricing policies, employment records and policies,
operational methods, marketing plans and strategies, product development
techniques and inventions and research programs, trade know- how, trade secrets,
specific software, algorithms, computer processing systems, object and source
codes, user manuals, systems documentation and other business and financial
affairs, and the parties agree not to disclose, deliver or otherwise make
available such materials or information to any third party (other than their own
directors, officers, employees, accountants and counsel who need such
information or materials). If a party is required by applicable law or legal
process to make disclosure to a third party of information or materials required
to be maintained as confidential pursuant to this Section 9.1, the disclosing
party shall give prior written notice to the other party (the "Protected Party")
of the information and materials it intends to disclose and the reasons why the
disclosing party believes it is required to disclose such information and
materials. The Protected Party may either consent to such disclosure, object to
such disclosure or seek a protective order or appropriate remedy to prohibit or
limit such disclosure. In the event that the

                                     - 33 -

<PAGE>   35

Protected Party objects to such disclosure but fails to obtain a protective
order or other remedy, the disclosing party shall disclose only such information
and materials as counsel for the disclosing party determines is required to be
made. Notwithstanding the foregoing, no party shall make a public announcement
regarding the existence of this Agreement or the terms hereof without the prior
consent of the other party, and the parties will cooperate with each other in
preparing the contents and determining the manner of distribution of any such
announcement.

9.2      SELLER NOT TO SOLICIT OBLIGORS.

         From and after each Sale Date as to any Contract and for so long as
such Contract is outstanding, neither Seller nor any officer or employee of
Seller shall knowingly solicit, and neither Seller nor its officers and
employees shall encourage or recommend any agent or representative of Seller to
solicit, any Obligor in respect of such Contract, either singly or as part of a
group, on behalf of Seller or any other entity in any manner that would
encourage prepayment of such Contract, except that Seller may continue to make
general solicitations to the public and to any of Seller's customers and may
advertise, sell and provide all financial services offered by Seller.

9.3      NO SOLICITATION OF OTHER PARTY'S EMPLOYEES.

         During the term of this Agreement and for one year after its
termination, both Seller and Purchaser agree not to solicit or cause to be
solicited the employment of any person who is employed by the other party.
Notwithstanding anything to the contrary in this section, the employment by
Seller or Purchaser of officers and employees of the other party who contact the
hiring party on their own initiative without any direct solicitation or
encouragement from the hiring party or who are solicited by advertising or
notices in newspapers or periodicals of general circulation shall not constitute
a breach of this Section 9.3.

                                    ARTICLE X
                            MISCELLANEOUS PROVISIONS

10.1     NOTICES.

         All notices and other communications provided for hereunder shall,
unless otherwise stated herein, be in writing and mailed or telecommunicated, or
delivered as to each party hereto, at its address set forth under its name on
the signature page hereof or at such other address as shall be designated by
such party in a written notice to the other parties hereto. All such notices and
communications shall not be effective until received by the party to whom such
notice or communication is addressed.

                                     - 34 -

<PAGE>   36

10.2     NO WAIVER; REMEDIES.

         No failure on the part of the Seller or the Purchaser to exercise, and
no delay in exercising, any right hereunder or under any Sale Assignment shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not
exclusive of any other remedies provided by law.

10.3     BINDING EFFECT; ASSIGNABILITY.

         This Sale Agreement shall be binding upon and inure to the benefit of
the Seller and the Purchaser, and their respective successors and permitted
assigns. The Seller may not assign any of its rights and obligations hereunder
or any interest herein without the prior written consent of the Purchaser, which
consent will not be unreasonably withheld. The Purchaser may assign all of its
rights hereunder to one or more Persons. This Sale Agreement shall create and
constitute the continuing obligations of the parties hereto in accordance with
its terms, and shall remain in full force and effect until its termination;
provided, that the obligations of the Seller set forth in Sections 2.3, 2.4, and
5.4, the obligations of both parties set forth in Article IX, the rights and
remedies granted to the Purchaser pursuant to Section 4.4 and the
indemnification and payment provisions of Article VIII shall be continuing and
shall survive any termination of this Sale Agreement.

10.4     AMENDMENTS; CONSENTS AND WAIVERS; ENTIRE AGREEMENT.

         No modification, amendment or waiver of, or with respect to, any
provision of this Sale Agreement, and all other agreements, instruments and
documents delivered hereto, and no consent to any departure by the Seller or by
the Purchaser from any of the terms or conditions hereof shall be effective
unless it shall be in writing and signed by each of the parties hereto. Any
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No consent to or demand by the Seller or the Purchaser
in any case shall, in itself, entitle such party to any other consent or further
notice or demand in similar or other circumstances. This Sale Agreement and the
documents referred to herein embody the entire agreement of the Seller and the
Purchaser with respect to the Sold Program Contracts and supersede all prior
agreements and understandings relating to the subject hereof.

10.5     SEVERABILITY.

         In case any provision in or obligation under this Sale Agreement shall
be invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provision or obligations, or of such
provision or obligation, shall not in any way be affected or impaired thereby in
any other jurisdiction.

                                     - 35 -

<PAGE>   37

10.6     PURCHASER TO PROVIDE SELLER DATA WITH RESPECT TO SOLD PROGRAM
         CONTRACTS.

         Purchaser shall provide Seller (no more often than once per calendar
month) data relating to the performance of all Sold Program Contracts. Such data
will be of the type and level of detail considered necessary by the Seller, in
its reasonable discretion, to allow Seller to perform static pool and other
analyses on such Sold Program Contracts. It is understood that this condition
becomes effective once the volume of Sold Program Contracts reaches a level
where such analyses would be considered by the Seller to be meaningful. It is
also understood that, once effective, this provision shall apply to all Sold
Program Contracts since the date of this Sale Agreement and for the life of all
such Sold Program Contracts.

10.7     COSTS, FEES AND EXPENSES.

         If any legal proceeding is instituted by either party against the other
under this Agreement or with respect to any Sold Program Contract, upon the
entry of a final order or judgment, the non-prevailing party shall be required
to pay the prevailing party's costs and expenses of such litigation, including
reasonable attorneys' fees. The Seller shall be solely responsible for paying
any and all brokers' fees and expenses that may be payable to any broker,
advisor or agent who has provided services to the Seller with respect to this
Agreement and the transactions contemplated hereby. Except as otherwise provided
in this Agreement, each party agrees to pay all costs, fees and expenses which
it has incurred in connection with or incidental to the matters contained in
this Agreement, including any fees and disbursements to its accountants and
counsel.

10.8     RIGHT OF OFFSET AND DEDUCTION.

         Any party (the "Offsetting Party") may offset and deduct from any
amount payable by the Offsetting Party to the other party (the "Debtor Party")
under this Agreement or the Servicing Agreement any amount which is, at the time
of exercise of the right of offset and deduction, presently due and payable by
the Debtor Party to the Offsetting Party pursuant to this Agreement or the
Servicing Agreement.

10.9     GOVERNING LAW.

         THIS SALE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISIONS) OF THE STATE OF
FLORIDA.

10.10    CONSENT TO JURISDICTION AND VENUE.

         Each of the Seller and the Purchaser hereby irrevocably and
unconditionally submits, for itself and its property, to the non-exclusive
jurisdiction of any Arkansas state court, Florida State Court, federal court of
the United States of America for the Eastern District of Arkansas, or federal
court of the United States of America for the Northern District of Florida, and
any

                                     - 36 -

<PAGE>   38

appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment,
and the parties agree that all claims in respect of any such action or
proceeding may be heard and determined in such Arkansas or Florida state or, to
the extent permitted by law, federal court.

10.11    EXECUTION IN COUNTERPARTS.

         This Sale Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same agreement

                                     - 37 -

<PAGE>   39

     IN WITNESS WHEREOF, the parties have cause this Sale Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                             NATIONAL AUTO FINANCE COMPANY, INC.

                           By:            /s/ WILLIAM MAGRO
                                          -----------------------------
                               NAME:      William Magro
                               Title:     President and Chief Operating Officer

                               Address:   National Auto Finance Company, Inc.
                                          10302 Deerwood Park Boulevard
                                          Suite 100
                                          Jacksonville, Florida 32255-0970
                                          Telephone:    904-996-2500
                                          Telecopy:     904-996-2539

                               With a copy to:
                               Stephen R. Veth, Esq.
                               Vice President, Secretary and General Counsel
                               Telephone: 904-486-1151
                               Telecopy:   904-996-2557

                               NUVELL CREDIT CORPORATION

                               By:      /S/ TOMMY E. PRITCHARD
                                        -------------------------------
                                        Tommy E. Pritchard
                                        President

                               Address:
                                          17500 Chenal Parkway, Suite 201
                                          Little Rock, Arkansas 72223-9131
                                          Telephone:      501-821-5200
                                          Telecopy:       501-821-5208
                                                 Attn.:   Tommy E. Pritchard
                                                          President

                                     - 38 -

<PAGE>   40

With a copy to:
Thomas N. Rose
Executive Vice President
17500 Chenal Parkway, Suite 201
Little Rock, Arkansas 72223-9131
Telephone:      501-821-9400
Telecopy:       501-821-5208

                                     - 39 -
<PAGE>   41

                                  EXHIBIT LIST

A    Assignment

B    Fee Schedule

C    Purchaser's Contract Requirements

D    Power of Attorney

E    Officer's Certificate

F    Legal Opinion of Seller's Counsel

G    List of Independent Automobile Dealers From Whom Seller Purchases Contracts

                                     - 40 -

<PAGE>   42
                                    EXHIBIT A

                                   ASSIGNMENT

     ASSIGNMENT dated _______________, ______, from NATIONAL AUTO FINANCE
COMPANY, INC. ("Seller") to NUVELL CREDIT CORPORATION ("Purchaser").

     FOR VALUE RECEIVED, pursuant to the Contract Sale Agreement dated as of
February 4, 2000, by and between Seller and Purchaser (the "Agreement"), Seller
does hereby sell, transfer, assign and convey unto Purchaser, its successors and
assigns, all of its right, title and interest in, to and under the Motor Vehicle
Retail Installment Sales Contract (the "Contract") attached hereto, which has
the following characteristics:

Origination Date:          _______________      Description of Financed Vehicle:
Amount Funded:             _______________           Year:      _______________
Name of Obligor(s):        _______________           Make:      _______________
                                                     Model:     _______________
                                                     VIN:       _______________

together with all of its right, title and interest in, to and under all
documents, payments, recoveries, proceeds and obligations arising therefrom or
in connection therewith.

     And Seller hereby represents, warrants and confirms to Purchaser, subject
to the terms and provisions of the Agreement, that the Contract is an "Eligible
Program Contract," as defined in the Agreement, all of Seller's representations
and warranties regarding the Seller and the Contract made in or pursuant to the
Agreement are true and correct in all material respects as of the date hereof,
the Seller is in compliance, as of the date hereof, with each of it covenants
set forth in the Agreement, the "Scheduled Termination Date," as defined in the
Agreement, has not occurred, and no event has occurred which, with notice or the
passage of time, would constitute a "Seller Termination Event," as defined in
the Agreement, or a breach by Seller of its representations, warranties or
obligations under the Agreement.

     And Seller hereby grants to Purchaser a power of attorney, with full power
of substitution, to execute in Seller's name and on Seller's behalf such
notices, endorsements (including, without limitation, endorsement of the
Contract and any related promissory notes or other instruments), consents, and
other instruments and documents which may be reasonably necessary in Purchaser's
judgment to evidence the sale and assignment of the Contract to Purchaser or to
record or otherwise perfect Purchaser's interest therein or in the collateral
securing the Contract, or which may be otherwise consistent with the sale and
assignment of the Contract effected by this Assignment and pursuant to the
Agreement. This power of attorney is coupled with an interest and is
irrevocable.

                                      - 1 -
<PAGE>   43

     All terms used herein and not otherwise defined shall have the meaning set
forth in the Agreement. This Assignment is made WITHOUT RECOURSE AGAINST THE
SELLER OR WARRANTY TO THE PURCHASER, except to the extent specifically provided
for in the Agreement.

     IN WITNESS WHEREOF, Seller has caused this Assignment to be executed by its
duly authorized officer effective as of the date first set forth above.

Seller:                               NATIONAL AUTO FINANCE COMPANY, INC.

                                      By:      ____________________________
                                               Name:

                                      Title:   ____________________________

                                      - 2 -

<PAGE>   44

                                    EXHIBIT B

                                  Fee Schedule

     The Purchase Price for each Sold Program Contract purchased by the
Purchaser from the Seller pursuant to the Contract Sale Agreement shall equal
the following:

     1. The Amount Financed, plus

     2. Dealer participation in the amount actually paid to the Dealer, but not
exceeding such amount as is payable pursuant to the Seller's Contract Finance
Program Guidelines, minus

     3. The applicable discount and/or acquisition fee, minus

     4. The applicable overadvance warranty fee and the overadvance fee, the
total of the above to be paid by the Purchaser to the Purchaser's Control
Account; plus

     5. The referral fee payable by the Seller to a third-party, if and to the
extent that the payment of such fee has not resulted in an applicable discount
in the amount paid to the Dealer for such Contract in excess of the amount
allowed by the Purchaser's Contract Requirements attached as Exhibit C to the
Contract Sale Agreement, plus

     6. The amount payable to the applicable Governmental Authority in the State
of Florida for documentary stamps, plus

     7. The amount of cash payable by the Seller to any Dealer pursuant to its
Contract Finance Program Guidelines as compensation for the volume of Contracts
sold by the Dealer to the Seller, if and to the extent that such cash amounts
relate to Sold Program Contracts previously purchased by the Purchaser from the
Seller, plus

     8. An acquisition fee of $465.00, the total of Items 5 through 8 to be paid
by the Purchaser directly to the Seller to such account as may be designated by
the Seller in writing to the Purchaser, as set forth in Section 2.1(c) of the
Contract Sale Agreement.

                                      - 3 -
<PAGE>   45
                                    EXHIBIT C

                        Purchaser's Contract Requirements

     Nuvell will purchase only Eligible Program Contracts that comply with
Seller's Contract Finance Program Guidelines and satisfy, as of the closing
date, all of the criteria set forth in the Contract Sale Agreement. In addition,
each Eligible Program Contract must satisfy the following criteria:

          (1) has a NAFI credit score of at least one hundred and fifty-two
     (152), unless the amount financed is 100% or less of the wholesale value of
     the financed vehicle, as determined by reference to a reputable, nationally
     distributed used car guide;

          (2) does not involve the financing of any of the following makes or
     models:

                    Alfa Romeo
                    Daewoo
                    Daihatsu
                    Peugeot
                    Kia
                    Hyundais
                    Suzuki
                    Mitsubishi Mirage -

     unless the Amount Financed (a) for any new such vehicle is less than ninety
     percent (90%) of invoice and (b) for any used such vehicle is less than
     ninety percent (90%) of the NADA "Trade-In Value" of such vehicle, with
     reference to the NADA Used Car Guide for the region of the United States in
     which such vehicle is sold to the Obligor, except the States of Arizona,
     California, Nevada, Utah and Washington, in which reference will be made to
     Kelley Blue Book for the region of the United States in which such vehicle
     is sold to the Obligor;

          (3) has an original principal balance of at least $7,000 and not more
     than $30,000;

          (4) has a stated APR of at least 12.95% and not more than 25.95%;

          (5) does not involve the financing of or sale to the Obligor of GAP
     insurance, a deficiency waiver or debt cancellation agreement, except
     pursuant to such form of agreement as has been approved by the Purchaser
     and in such states as approved by the Purchaser;

                                      - 1 -

<PAGE>   46

          (6) does not involve a purchase discount (being the difference between
     the original principal balance of the Contract and the amount paid to the
     dealer for the purchase of the Contract) of greater than 10% of the
     original principal balance, unless the original principal balance of the
     Contract is less than $10,000;

          (7) does not involve any prepaid finance charge;

          (8) does not involve the sale of a Financed Vehicle at a sales price
     (not including sales tax) greater than 115% of the wholesale value of the
     Financed Vehicle, as determined by reference to a reputable, nationally
     distributed used car guide;

          (9) does not involve a difference between the buy rate and the
     Contract rate resulting in greater than two (2) percentage points of
     reserve, dealer participation or dealer finance income;

          (10) does not involve the payment to the dealer of dealer
     participation or dealer finance income that is refundable by or chargeable
     back to the dealer;

          (11) does not involve the sale of any of the following: (a) a vehicle
     having a salvage, branded or flood title, (b) a vehicle subject to state or
     federal lemon laws, ( c) a vehicle for which the true mileage is unknown,
     (d) a vehicle which has been altered by a conversion package, or (e) a
     vehicle that is considered a truck with one (1) ton or greater capacity;
     and

          (12) does not involve the payment by the Seller of any referral fee to
     a third-party, except pursuant to a referral program that has been
     specifically approved by the Purchaser.

                                      - 2 -
<PAGE>   47
                                    EXHIBIT D

                          IRREVOCABLE POWER OF ATTORNEY

     KNOW ALL MEN BY THESE PRESENTS, that the undersigned, NATIONAL AUTO FINANCE
COMPANY, INC. (the "Company") does hereby make, constitute and appoint NUVELL
CREDIT CORPORATION and NUVELL FINANCIAL SERVICES CORP., which are hereby
authorized to act together or separately, as its true and lawful
attorney-in-fact, with full power of substitution with respect to those certain
retail installment sales contracts sold by the Company to Nuvell Credit
Corporation pursuant to a Contract Sale Agreement by and between the Company, as
"Seller," and Nuvell Credit Corporation, as "Purchaser," dated as of
______________________, and as such may be amended from time to time and which
is incorporated by reference herein, the collateral securing such contracts, and
all security documents related thereto (collectively, the "Property"), to sign,
acknowledge and file, in the name, place and stead of the Company, all such
certificates, documents and instruments, including, but not limited to, any
instrument of assignment, certificate of title, notice of lien, assignment of
lien, application for a certificate of title or duplicate of such certificate,
application to register or transfer title, document to effect the notation of a
lien upon a certificate of title or the assignment of such a lien, notice of any
such assignment, and application to register or transfer the rights as secured
party under any policy of insurance; affidavits of repossession, bills of sale,
notices of sale, lien releases and odometer statements; to authorize the sale
and disposition of Property and transact as necessary to sell or re-market such
Property; and to sell the Property and receive proceeds thereon through any
authorized party or auction; and further as said attorney-in-fact may deem fit
and proper to perfect the right, title and interest of Nuvell Credit Corporation
and/or its successors and assigns in the Property.

     The undersigned further hereby gives and grants unto said attorney-in-fact
full power and authority to do and perform every act necessary and proper to be
done in the exercise of any of the foregoing powers with respect to the Property
as fully as the undersigned might or could do if personally present.

     This Power of Attorney is coupled with an interest and is irrevocable by
the undersigned. Anyone to whom this Power of Attorney is presented may rely
upon it without further inquiry of the undersigned. A photocopy of this Power of
Attorney shall have the same effect as an original, manually signed and
acknowledged counterpart of this Power of Attorney.

     IN WITNESS WHEREOF, the undersigned has executed this instrument this ___
day of _______________, ________.

                                     NATIONAL AUTO FINANCE COMPANY, INC.

                                     By:    ----------------------------------

                                     Title: ----------------------------------

                                      - 1 -
<PAGE>   48
                                 ACKNOWLEDGMENT

STATE OF           )
                   ) ss.
COUNTY OF          )

     On this __________ day of ___________________, ______, before me
_____________________________ personally appeared ____________________________,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his authorized capacity, and
that by his signature on the instrument the person, or the entity upon behalf of
which the person acted, executed the instrument.

     IN WITNESS WHEREOF, I hereunto set my hand and official seal.

                                   ------------------------------------
                                   Notary Public
                                   My Commission expires:
                                                         ----------------------

                                      - 2 -
<PAGE>   49
                                    EXHIBIT E

             Form of Officer's Certificate to Be Delivered by Seller

     The undersigned, an officer of NATIONAL AUTO FINANCE COMPANY, INC. (the
"Company"), having the title and position set forth below his signature, hereby
certifies to Nuvell Credit Corporation (the "Purchaser") as follows:

          (1) The undersigned officer delivers this certificate on behalf of the
     Company pursuant to section 3.1(a)(vi) of the Contract Sale Agreement by
     and between the Company and Purchaser dated as of __________________ (the
     "Agreement").

          (2) Each of the representations and warranties of the Company
     contained in the Agreement are true and correct in all respects on and as
     of the date hereof.

          (3) No event has occurred which constitutes a Seller Termination Event
     under the Agreement.

          (4) The Company is in compliance with each of its covenants set forth
     in the Agreement.

          (5) There has not occurred any material adverse change in the
     business, operations, financial condition or prospects of the Company since
     the date of the Agreement.

          (6) To the best of the undersigned's knowledge, all of the conditions
     precedent to the obligations of the Purchaser to purchase Eligible Program
     Contracts from the Seller, as set forth in Section 3.1(a) of the Agreement,
     have been satisfactorily completed, and upon the Company's receipt of
     written notice from the Purchaser stating that such conditions precedent
     have been completed, to the satisfaction of the Purchaser, the Company will
     begin to offer Eligible Program Contracts for sale to the Purchaser in
     accordance with the provisions of Section 2.1 of the Agreement.

     IN WITNESS WHEREOF, the undersigned officer of the Company has executed and
delivered this Officer's Certificate effective as of the _____ day of
______________, ______.

                                        NATIONAL AUTO FINANCE COMPANY, INC.

                                        By:
                                           ------------------------------------

                                        Title:
                                              ---------------------------------

<PAGE>   50
                                    EXHIBIT F

                Form of Opinion Required by Section 3.1(a)(viii)

                                 [Closing Date]

Nuvell Credit Corporation
17500 Chenal Parkway, Suite 201
Little Rock, Arkansas  72223-9131

     Re:  Contract Sale Agreement Dated as of ____________________, 2000,
          Between National Auto Finance Company, Inc., as Seller, and Nuvell
          Credit Corporation, as Purchaser

Ladies and Gentlemen:

     You have requested my opinion, as counsel to National Auto Finance Company,
Inc. (the "Seller"), with respect to certain matters in connection with the sale
by Seller of motor vehicle receivables (the "Contracts") pursuant to that
certain Contract Sale Agreement, dated as of ____________________, 2000 (the
"Sale Agreement"), between Seller and Nuvell Credit Corporation (the
"Purchaser").

     I have reviewed the Sale Agreement and such other documents as I deemed
necessary or advisable for purposes of this opinion. In rendering this opinion,
I have examined and relied upon originals or copies, certified or otherwise, of
all such corporate records, documents, agreements or other instruments of
Seller, have made such investigations of law and have discussed with officers of
Seller such questions of fact as I have deemed necessary or appropriate. In
rendering this opinion, I have relied upon certificates and statements of
officers and directors of Seller as to factual matters and assumed the
genuineness of all documents submitted as copies and the legal capacity of
natural persons.

     I assume for purposes of this opinion that the Sale Agreement has been duly
authorized by the Purchaser and will be duly executed and delivered by the
Purchaser in accordance with such authorization. [Include other reasonable
assumptions and qualifications consistent with the Legal Opinion Accord of the
ABA Section of Business Law (1991)]

     Relying on the matters stated above, and based upon and subject to the
foregoing, I am of the opinion that:

     1. Seller is a duly organized and a validly existing corporation in good
standing under the laws of the State of Delaware, and it is properly qualified
and in good standing in each other

<PAGE>   51
Nuvell Credit Corporation
[Closing Date]
Page 2

jurisdiction where the character of its properties or the nature of its
activities makes such qualification necessary and wherein the failure to be so
qualified would materially and adversely affect its business or properties, the
enforceability of the Sale Agreement or the enforceability of any Contract.

     2. Seller has the power to engage in the transactions contemplated by the
Sale Agreement and all requisite power, authority and legal right to execute and
deliver the Sale Agreement and the form of Assignment (the "Assignment")
attached as Exhibit A to the Sale Agreement, and to perform and observe the
terms and conditions of such agreement and instruments.

     3. The Sale Agreement has been duly authorized, executed and delivered by
Seller and is a legal, valid and binding agreement of Seller enforceable against
Seller in accordance with its terms, subject to bankruptcy laws and other
similar laws of general application affecting rights of creditors and subject to
the application of the rules of equity, including those respecting the
availability of specific performance. [Include other exceptions and/or
qualifications to enforceability opinion as may be reasonably acceptable to the
Purchaser]

     4. Seller's execution and delivery of an Assignment to the Purchaser and
its delivery of the Contract described in any such Assignment to the Purchaser
are sufficient to transfer all of Seller' right, title and interest in such
Contract to the Purchaser. [Include explanation of Florida law on how to perfect
a security interest in a Financed Vehicle] The Purchaser will receive title to
such Contracts free and clear of any liens, encumbrances and security interests
of any other person, except as set forth below: [set forth exceptions to
priority opinion which are reasonably acceptable to the Purchaser]

     5. No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution and delivery by Seller
of, and performance by Seller of its obligations under, the Sale Agreement and
any Assignment or the Seller's consummation of the transactions contemplated by
the Sale Agreement, or if such consent, approval, authorization or order is
required, it has been disclosed to the Purchaser and has been obtained.

     6. Neither the sale nor delivery of any Contract to the Purchaser, nor the
consummation of the transactions contemplated by the Sale Agreement, nor the
fulfillment of the obligations of Seller under the terms of the Sale Agreement
materially conflicts with or will materially conflict with or results or will
result in a material breach of or constitutes or will constitute a material
default under the Articles of Incorporation or Bylaws of Seller, the terms of
any indenture or other agreement or instrument known to me to which Seller are a
party or by

<PAGE>   52
Nuvell Credit Corporation
[Closing Date]
Page 3

which it is bound or to which it is subject, or any statute, order, rule,
regulation, writ, injunction or decree of any court, governmental authority or
regulatory body to which any Seller is subject or by which it is bound.

     7. There is no material litigation or administrative proceeding pending or,
to the best of my knowledge, threatened against Seller which, in my judgment,
either in any one instance or in the aggregate, would draw into question the
validity of the Sale Agreement or of any action taken or to be taken in
connection with the transactions contemplated thereby, or which would be likely
to impair materially the ability of Seller to perform its obligations under the
terms of the Sale Agreement.

     Whenever my opinion herein with respect to the existence or absence of
facts is indicated to be "to the best of my knowledge, information and belief"
or "known to me" or similar words, it is intended to signify that during the
course of my representation of Seller no information has come to my attention
that would give me actual knowledge of the existence of facts or circumstances
contrary to the opinions as qualified.

     My opinions herein are limited in all respects to the substantive laws of
the State of _______________ and the federal laws of the United States.

     This opinion letter is provided for the purposes of complying with
requirements of the Sale Agreement referred to herein. This opinion may not be
relied upon by any person, firm or entity whatsoever, other than the addressee
hereof, without my prior written consent.

     This opinion is rendered as of the date hereof, and I undertake no, and
hereby disclaim any, obligation to advise you of any changes in or developments
that might affect any matters or opinions set forth herein.

                                           Very truly yours,

                                           ------------------------------
                                           Name of Counsel

<PAGE>   53

                                    EXHIBIT G

   List of Independent Automobile Dealers From Whom Seller Purchases Contracts

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