Document:

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                                                                     EXHIBIT 4.1

                        D & K HEALTHCARE RESOURCES, INC.
                          2001 LONG TERM INCENTIVE PLAN

1.       PURPOSES.

         (a) ELIGIBLE STOCK AWARD RECIPIENTS. The persons eligible to receive
Stock Awards are the Employees, Directors and Consultants of the Company and its
Affiliates.

         (b) AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide a
means by which eligible recipients of Stock Awards may be given an opportunity
to benefit from increases in value of the Common Stock through the granting of
the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock
Options, (iii) Stock Appreciation Rights, (iv) Performance Awards and (v)
Restricted Stock.

         (c) GENERAL PURPOSE. The Company, by means of the Plan, seeks to retain
the services of the group of persons eligible to receive Stock Awards, to secure
and retain the services of new members of this group and to provide incentives
for such persons to exert maximum efforts for the success of the Company and its
Affiliates.

         (d) PRIOR PLANS. Effective with approval of this Plan by the
shareholders of the Company, no further awards shall be granted under the
Company's Amended and Restated 1992 Long Term Incentive Plan and 1993 Stock
Option Plan (collectively "Prior Plans"). However, nothing herein shall affect
awards made under the Prior Plan before such approval and the provisions of the
Prior Plans shall continue to control with respect to any outstanding awards
granted thereunder.

2.       DEFINITIONS.

         (a) "AFFILIATE" means any parent corporation or subsidiary corporation
of the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f), respectively, of the Code.

         (b) "AWARD DATE" means the date established by the Committee the for
the grant of a Stock Award.

         (c) "BASE PRICE" means a price fixed by the Committee, which shall not
be less than the Fair Market Value of a share of Common Stock on the date of
grant of a Stock Award with respect to such Stock.

         (d) "BOARD" means the Board of Directors of the Company.

         (e) "CODE" means the Internal Revenue Code of 1986, as amended.

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         (f) "COMMITTEE" means the committee or committees established by the
Board in accordance with Section 3(c). All references herein to "Committee"
shall be deemed to be to the Board when the Board has not established the
Committee pursuant to Section 3(c).

         (g) "COMMON STOCK" means authorized and unissued shares of the $.01 par
value common stock of the Company or reacquired shares of the Company's $.01 par
value common stock held in its Treasury.

         (h) "COMPANY" means D & K Healthcare Resources, Inc., a Delaware
corporation.

         (i) "CONSULTANT" means any person, including an advisor, (i) engaged by
the Company or an Affiliate to render consulting or advisory services and who is
compensated for such services or (ii) who is a member of the Board or the board
of directors of an Affiliate. However, the term "Consultant" shall not include
either Directors who are not compensated by the Company for their services as
Directors or Directors who are merely paid a director's fee by the Company for
their services as Directors.

         (j) "CONTINUOUS SERVICE" means that the Participant's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. The Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of
the Participant's service with the Company or an Affiliate. For example, a
change in status from an Employee of the Company to a Consultant of an Affiliate
or a Director will not constitute an interruption of Continuous Service. The
Committee or the chief executive officer of the Company, in that party's sole
discretion, may determine whether Continuous Service shall be considered
interrupted in the case of any leave of absence approved by that party,
including sick leave, military leave or any other personal leave.

         (k) "CORPORATE TRANSACTION" means the occurrence, in a single
transaction or in a series of related transactions, of any one or more of the
following events:

                  (i) a sale, lease, license or other disposition of all or
substantially all of the consolidated assets of the Company and its Affiliates;

                  (ii) a sale or other disposition of at least ninety percent
(90%) of the outstanding securities of the Company;

                  (iii) a merger, consolidation or similar transaction following
which the Company is not the surviving corporation; or

                  (iv) a merger, consolidation or similar transaction following
which the Company is the surviving corporation but the shares of Common Stock
outstanding immediately preceding the merger, consolidation or similar
transaction are converted or exchanged by virtue of the merger, consolidation or
similar transaction into other property, whether in the form of securities, cash
or otherwise.

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         (l) "DIRECTOR" means a member of the Board.

         (m) "DISABILITY" means the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code, as determined by the
Committee in good faith, upon receipt of and reliance on sufficient competent
medical advice.

         (n) "EMPLOYEE" means any person employed by the Company or an
Affiliate. Mere service as a Director or payment of a director's fee by the
Company or an Affiliate shall not be sufficient to constitute "employment" by
the Company or an Affiliate.

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

         (p) "FAIR MARKET VALUE" means, as of any date, the value of the Common
Stock determined as follows:

                  (i) If the Common Stock is listed on any established stock
exchange or traded on the Nasdaq National Market, the Fair Market Value of a
share of Common Stock shall be the closing sales price for such stock (or the
mean between the bid and asked prices, if no closing price is reported) as
quoted on such exchange or market (or the exchange or market with the greatest
volume of trading in the Common Stock) on the last market trading day prior to
the day of determination, as reported in The Wall Street Journal or such other
source as the Board deems reliable. If fair market value is to be determined as
of a day when the securities markets are not open, the Fair Market Value on that
day shall be the Fair Market Value on the preceding day when the markets are
open.

                  (ii) In the absence of such markets for the Common Stock, the
Fair Market Value shall be determined in good faith by the Committee.

         (q) "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

         (r) "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify
as an Incentive Stock Option.

         (s) "OFFICER" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

         (t) "OPTION" means an Incentive Stock Option or a Nonstatutory Stock
Option granted pursuant to the Plan.

         (u) "OPTION AGREEMENT" means a written agreement between the Company
and an Optionholder evidencing the terms and conditions of an individual Option
granted pursuant to a Stock Award. Each Option Agreement shall be subject to the
terms and conditions of the Plan. References to Option Agreement shall also
include the following ancillary documents, Notice of Exercise and Grant Notice.

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         (v) "OPTIONHOLDER" means a person to whom an Option is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding
Option.

         (w) "OUTSIDE DIRECTOR" means a Director who either (i) is not a current
Employee of the Company or a member of an "affiliated group" (within the meaning
of Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former Employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an Officer of the Company or an "affiliated corporation"
at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

         (x) "PARTICIPANT" means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award.

         (y) "PERFORMANCE AWARD" means a right as determined by the Committee to
receive a deferred payment of cash, Common Stock or some combination thereof
based on performance during a Performance Period as provided in Section 7(c).

         (z) "PERFORMANCE PERIOD" means a period of not more than five years
established by the Committee during which certain performance goals set by the
Committee are to be met.

         (aa) "PLAN" means this D & K Healthcare Resources, Inc. 2001 Long Term
Incentive Plan.

         (bb) "REPORTING PERSON" means any person who is required to file
reports pursuant to the provisions of Section 16 of the Exchange Act and Rule
16a-2 promulgated thereunder.

         (cc) "RESTRICTED STOCK" means shares of Common Stock, which may be
subject to certain restrictions, which are granted pursuant to a Stock Award.

         (dd) RESTRICTED STOCK AWARDS" means a Stock Award granted to a
Participant to receive or purchase shares of Restricted Stock.

         (ee) "RETIREMENT" means termination of employment with eligibility for
normal, early or disability retirement benefits under the terms of any pension
plan adopted by the Company and specified by the Committee, as amended and in
effect at the time of such termination of employment.

         (ff) "STOCK APPRECIATION RIGHT" or "SAR" means the right to receive a
payment from the Company equal to the excess of the Fair Market Value of a share
of Common Stock at the date of exercise over the Base Price. In the case of a
Stock Appreciation Right which is granted in conjunction with an Option, the
Base Price shall be the Option exercise price.

         (gg) "RULE 16b-3" means Rule 16b-3 promulgated under the Exchange Act
or any successor to Rule 16b-3, as in effect from time to time.

         (hh) "SECURITIES ACT" means the Securities Act of 1933, as amended.

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         (ii) "STOCK AWARD" means any right granted under the Plan, including an
Option, Stock Appreciation Right, Performance Award, and Restricted Stock.

         (jj) "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

         (kk) "TEN PERCENT STOCKHOLDER" means a person who owns (or is deemed to
own pursuant to Section 424(d) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any of its Affiliates.

3.       ADMINISTRATION.

         (a) ADMINISTRATION BY BOARD. The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as provided in
Section 3(c).

         (b) POWERS OF BOARD. The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

                  (i) To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how each Stock
Award shall be granted; what type or combination of types of Stock Award shall
be granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to
receive Common Stock pursuant to a Stock Award; and the number of shares of
Common Stock with respect to which a Stock Award shall be granted to each such
person.

                  (ii) To construe and interpret the Plan and Stock Awards
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the
Plan fully effective.

                  (iii) To amend the Plan or a Stock Award as provided in
Section 12.

                  (iv) To terminate or suspend the Plan as provided in Section
13.

                  (v) Generally, to exercise such powers and to perform such
acts as the Board deems necessary or expedient to promote the best interests of
the Company which are not in conflict with the provisions of the Plan.

         (c) DELEGATION TO COMMITTEE. The Board may delegate administration of
the Plan to a Committee or Committees. The term "Committee" shall apply to any
person, persons, committee or committees to whom such authority has been
delegated. If administration is delegated to a Committee, the Committee shall
have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board, including the power to delegate to a subcommittee any of
the administrative powers the Committee is authorized to exercise (and
references in this Plan to the Board shall thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be

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adopted from time to time by the Board. The Board may from time to time in its
discretion, fix and change the number of members of a Committee, remove members
of a Committee, appoint members of a Committee in substitution for or in
addition to members previously appointed; and fill vacancies however caused in a
Committee. The Board may abolish a Committee at any time and revest in the Board
the administration of the Plan. Notwithstanding the foregoing, any grant of an
Option, Performance, SAR or Restricted Stock Award to a Reporting Person must be
made by the Board or a Committee comprised solely of two or more Outside
Directors.

         (d) EFFECT OF BOARD'S DECISION. All determinations, interpretations and
constructions made by the Board or the Committee in good faith shall not be
subject to review by any person and shall be final, binding and conclusive on
all persons.

4.       SHARES SUBJECT TO THE PLAN.

         (a) SHARE RESERVE. Subject to the provisions of Section 11 relating to
adjustments upon changes in Common Stock, the Common Stock that may be issued
pursuant to Stock Awards shall not exceed in the aggregate five hundred thousand
(500,000) shares of Common Stock.

         (b) REVERSION OF SHARES TO THE SHARE RESERVE. If any Stock Award shall
for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under
such Stock Award shall revert to and again become available for issuance under
the Plan.

         (c) SOURCE OF SHARES. The shares of Common Stock subject to the Plan
may be unissued shares or reacquired shares, bought on the market or otherwise.

5.       ELIGIBILITY.

         (a) ELIGIBILITY FOR SPECIFIC STOCK AWARDS. Incentive Stock Options may
be granted only to Employees. Stock Awards other than Incentive Stock Options
may be granted to Employees, Directors and Consultants.

         (b) TEN PERCENT STOCKHOLDERS. A Ten Percent Stockholder shall not be
granted an Incentive Stock Option unless the exercise price of such Option is at
least one hundred ten percent (110%) of the Fair Market Value of the Common
Stock at the date of grant.

         (c) AWARD DATE. All Stock Awards granted under the Plan shall be
granted as of an Award Date. All Stock Awards are subject to the terms and
conditions set forth in the applicable Stock Award Agreement. Within thirty days
after each Award Date, the Company shall notify the Participant of the grant of
the Stock Award, and shall hand deliver or mail to the Participant a Stock Award
Agreement, duly executed by and on behalf of the Company, with the request that
the Participant execute the Agreement within thirty days after the date of
mailing or delivery by the Company of the Agreement to the Participant. If the
Participant shall fail to execute the written Stock Award Agreement within said
thirty-day period, his or her Stock Award shall be automatically terminated.

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6.       OPTION PROVISIONS.

         Each Option shall be in such form and shall contain such terms and
conditions as the Committee shall deem appropriate. All Options shall be
separately designated Incentive Stock Options or Nonstatutory Stock Options at
the time of grant, and, if certificates are issued, a separate certificate or
certificates will be issued for shares of Common Stock purchased on exercise of
each type of Option. The provisions of separate Options need not be identical,
but each Option shall include (through incorporation of provisions hereof by
reference in the Option Agreement or otherwise) the substance of each of the
following provisions:

         (a) TERM. No Option shall be exercisable after the expiration of five
(5) years from the date it was granted.

         (b) EXERCISE PRICE OF AN OPTION. Subject to the provisions of Section
5(b) regarding Ten Percent Stockholders, the exercise price of each Option shall
be not less than one hundred percent (100%) of the Fair Market Value of the
Common Stock subject to the Option on the date the Option is granted.
Notwithstanding the foregoing, an Option may be granted with an exercise price
lower than that set forth in the preceding sentence if such Option is granted
pursuant to an assumption or substitution for another option in a manner
satisfying the provisions of Section 424(a) of the Code.

         (c) CONSIDERATION. The purchase price of Common Stock acquired pursuant
to an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised or (ii) at
the discretion of the Committee at the time of the grant of the Option (or
subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the
Company of other Common Stock, (2) pursuant to a deferred payment or other
similar arrangement with the Optionholder, or (3) in any other form of legal
consideration that may be acceptable to the Committee. Unless otherwise
specifically provided in the Option Agreement, the purchase price of Common
Stock acquired pursuant to an Option that is paid by delivery to the Company of
other Common Stock acquired, directly or indirectly from the Company, shall be
paid only by shares of the Common Stock of the Company that have been held for
more than six (6) months (or such longer or shorter period of time required to
avoid a charge to earnings for financial accounting purposes). At any time that
the Company is incorporated in Delaware, payment of the Common Stock's "par
value," as defined in the Delaware General Corporation Law, shall not be made by
deferred payment.

         In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as interest, under any applicable
provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.

         (d) DELIVERY OF CERTIFICATE. After the exercise of an Option, as
provided above, the Company shall within a reasonable time deliver to the person
exercising the Option a certificate or certificates issued in the name of the
person who exercised the Option and such additional name, or names, if any, as
may be requested (subject to the general policy of the Company as to
registration of shares), for the appropriate number of shares of Common Stock,
without liability to the person exercising the Option for any transfer or issue
tax, state or Federal, then payable.

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Each Option granted under the Plan shall be subject to the requirement that, if
at any time the Committee shall determine, in its discretion, that the listing,
registration or qualification of the shares of Common Stock subject to such
Option upon any securities exchange or under any state or Federal law, or the
consent or approval of any governmental regulatory body, is necessary or
desirable, as a condition of, or in connection with, the granting of such Option
or the issue or purchase of shares of Common Stock thereunder, no such Option
may be exercised in whole or in part unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Committee.

         An Optionee under an Option granted under the Plan shall have no rights
as a shareholder with respect to any shares of Common Stock covered by an Option
except to the extent that one or more certificates for such shares shall have
been delivered to him upon due exercise of an Option as above provided.

         (e) TRANSFERABILITY OF AN INCENTIVE STOCK OPTION. An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder. Notwithstanding the foregoing, the Optionholder may,
by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option.

         (f) TRANSFERABILITY OF A NONSTATUTORY STOCK OPTION. A Nonstatutory
Stock Option shall be transferable to the extent provided in the Option
Agreement. If the Nonstatutory Stock Option does not provide for
transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written
notice to the Company, in a form satisfactory to the Company, designate a third
party who, in the event of the death of the Optionholder, shall thereafter be
entitled to exercise the Option.

         (g) Vesting Generally. Except as provided in Sections 10(a) and 11(c),
Option grants shall become exercisable as follows:

        Period of Time                       Percentage of Shares Subject o
      from Date of Grant                     Options which are Exercisable

  One year from date of grant                        33 1/3 percent
 Two years from date of grant                        66 2/3 percent
Three years from date of grant                        100 percent

         (h) TERMINATION OF CONTINUOUS SERVICE. In the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's Disability or,
in the case of an Optionholder of a Nonstatutory Stock Option, the
Optionholder's death), the Optionholder may exercise his or her Option (to the
extent that the Optionholder was entitled to exercise such Option as of the date
of termination) but only within such period of time specified in the Option

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Agreement. Provided, however, that the Optionholder of an Incentive Stock Option
may exercise such Option within such period of time ending on the earlier of (i)
the date three (3) months following termination of the Optionholder's Continuous
Service or (ii) the expiration of the term specified in the Option Agreement.
If, after termination, the Optionholder does not exercise his or her Option
within the time specified in the Option Agreement, the Option shall terminate.

         Notwithstanding the preceding, the exercise period for a Nonstatutory
Stock Option shall be extended to twelve (12) months in the event the
Optionholder terminates employment due to Retirement.

         (i) DISABILITY OF OPTIONHOLDER. In the event that an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination), but only
within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified in
the Option Agreement) or (ii) the expiration of the term of the Option as set
forth in the Option Agreement. If, after termination, the Optionholder does not
exercise his or her Option within the time specified herein, the Option shall
terminate.

         (j) DEATH OF OPTIONHOLDER OF NONSTATUTORY STOCK OPTION. In the event
(i) the Continuous Service of an Optionholder of a Nonstatutory Option
terminates as a result of such Optionholder's death or (ii) such Optionholder
dies within the period (if any) specified in the Option Agreement after the
termination of such Optionholder's Continuous Service for a reason other than
death, then the Option may be exercised (to the extent such Optionholder was
entitled to exercise such Option as of the date of death) by such Optionholder's
estate, by a person who acquired the right to exercise the Option by bequest or
inheritance or by a person designated to exercise the option upon such
Optionholder's death pursuant to Section 6(e) or 6(f), but only within the
period ending on the earlier of (1) the date eighteen (18) months following the
date of death (or such longer or shorter period specified in the Option
Agreement) or (2) the expiration of the term of such Option as set forth in the
Option Agreement. If, after death, the Option is not exercised within the time
specified herein, the Option shall terminate.

         (k) CANCELLATION AND RESCISSION OF STOCK AWARDS. Unless the Award
Agreement specifies otherwise, the Committee may cancel any unexpired, unpaid,
or deferred Stock Awards at any time if the Participant is not in compliance
with all other applicable provisions of the Stock Award Agreement, the Plan and
with the following conditions:

                  (i) A Participant, within one year following his termination
of employment with the Company, shall not, within the geographical areas where
the Company does business, render services for any organization or engage
directly or indirectly in any business which, in the judgment of the Committee,
is or becomes competitive with the Company, or which organization or business,
or the rendering of services to such organization or business, is or becomes
otherwise prejudicial to or in conflict with the interests of the Company. For
Participants whose employment has terminated, the determination shall be based
on the Participant's position and responsibilities while employed by the
Company, the Participant's post-employment responsibilities and position with
the other organization or business, the extent of past, current

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and potential competition or conflict between the Company and the other
organization or business, the effect on the Company's customers, suppliers and
competitors and such other considerations as are deemed relevant given the
applicable facts and circumstances. A Participant who has retired shall be free,
however, to purchase as an investment or otherwise, stock or other securities of
such organization or business so long as they are listed upon a recognized
securities exchange or traded over-the-counter, and such investment does not
represent a substantial investment to the Participant or a greater than ten (10)
percent equity interest in the organization or business.

         (ii) A Participant shall not, without prior written authorization from
the Company, disclose to anyone outside the Company, or use in other than the
Company's business, any confidential information or material, as defined in the
Company's policy regarding confidential information and intellectual property,
relating to the business of the Company, acquired by the Participant either
during or after employment with the Company.

         (iii) A Participant, pursuant to the Company's policy regarding
confidential information and intellectual property, shall disclose promptly and
assign to the Company all right, title and interest in any invention or idea,
patentable or not, made or conceived by the Participant during employment by the
Company, relating in any manner to the actual or anticipated business, research
or development work of the Company and shall do anything reasonably necessary to
enable the Company to secure a patent where appropriate in the United States and
in foreign countries.

         (iv) Upon exercise, payment or delivery pursuant of a Stock Award, the
Participant shall, upon request by the Company, certify on a form acceptable to
the Committee that he or she is in compliance with the terms and conditions of
the Plan. Failure to comply with all of the provisions of this Section 6(k)
within 120 days prior to, and during the twelve month period following the
Participant's termination of employment with the Company shall cause such
exercise, payment or delivery to be rescinded. The Company shall notify the
Participant in writing of any such rescission within two years after such
exercise, payment or delivery. Within ten days after receiving such a notice
from the Company, the Participant shall pay to the Company the amount of any
gain realized or payment received as a result of the rescinded exercise, payment
or delivery pursuant to a Stock Award. Such payment shall be made either in cash
or by returning to the Company the number of shares of Common Stock that the
Participant received in connection with the rescinded exercise, payment or
delivery.

7.       PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

         (a) STOCK APPRECIATION RIGHTS. Stock Appreciation Rights may be granted
which, at the discretion of the Committee, may be surrendered (1) in lieu of
exercise of an Option, (2) in conjunction with the exercise of an Option, (3)
upon lapse of an Option, (4) independent of an Option, or (5) each of the above
in connection with a previously awarded Option under the Plan. If the Option
referred to in (1), (2), or (3) above qualified as an Incentive Stock Option
pursuant to Section 422 of the Code, the related SAR shall comply with the
applicable provisions of the Code and the regulations issued thereunder. At the
time of grant, the Committee may establish in its sole discretion, a maximum
amount per share which will be payable upon surrender of a SAR, and may impose
such conditions on surrender of a SAR (including, without limitation, the

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right of the Committee to limit the time of surrender to specified periods) as
may be required to satisfy the requirements of Rule 16b-3 (or any successor
rule), under the Exchange Act. At the discretion of the Committee, payment for
SARs may be made in cash or Common Stock, or in a combination.

                  (i) Surrender of SARs in Lieu of Exercise of Options. SARs
surrenderable in lieu of exercise of Options may be surrendered for all or part
of the shares of Common Stock subject to the related Option upon the surrender
of the right to exercise an equivalent number of Options. A SAR may be
surrendered only with respect to the shares of Common Stock for which its
related Option is then exercisable. Upon surrender of a SAR in lieu of exercise
of an Option, shares of Common Stock equal to the number of SARs surrendered
shall no longer be available for Awards under the Plan, provided that if SARs
are surrendered for cash, shares of Common Stock equal to the number of SARs
surrendered shall be restored to the number of shares of Common Stock available
for issuance under the Plan.

                  (ii) Surrender of SARs in Conjunction with Exercise of
Options. SARs surrenderable in conjunction with the exercise of Options shall be
deemed to be surrendered upon the exercise of the related Options, and shares of
Common Stock equal to the sum of the number of shares of Common Stock acquired
by exercise of the Option plus the number of SARs surrendered shall no longer be
available for Stock Awards under the Plan, provided that if SARs are surrendered
for cash, shares of Common Stock equal to the number of SARs surrendered shall
be restored to the number of shares available for issuance under the Plan.

                  (iii) Surrender of SARs Upon Lapse of Options. SARs
surrenderable upon lapse of Options shall be deemed to have been surrendered
upon the lapse of the related Options as to the number of shares of Common Stock
subject to the Options. Shares of Common Stock equal to the number of SARs
deemed to have been surrendered shall not be available again for Stock Awards
under the Plan, provided that if SARs are surrendered for cash, shares of Common
Stock equal to the number of SARs surrendered shall be restored to the number of
shares Common Stock available for issuance under the Plan.

                  (iv) Surrender of SARs Independent of Options. SARs
surrenderable independent of Options may be surrendered upon whatever terms and
conditions the Committee in its sole discretion, imposes upon the SARs, and
shares of Common Stock equal to the number of SARs surrendered shall no longer
be available for Awards under the Plan, provided that if SARs are surrendered
for cash, shares of Common Stock equal to the number of SARs surrendered shall
be restored to the number of shares available for issuance under the Plan.

         (b) RESTRICTED STOCK AWARDS. Each Restricted Stock Award shall be in
such form and shall contain such terms and conditions as the Committee shall
deem appropriate. The terms and conditions of the Restricted Stock Award
Agreements may change from time to time, and the terms and conditions of
separate Restricted Stock Award Agreements need not be identical, but each
Restricted Stock Award Agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

<PAGE>

                  (i) Purchase Price. The purchase price, if any, under each
Restricted Stock Award Agreement shall be such amount as the Committee shall
determine and designate in such Restricted Stock Award Agreement;

                  (ii) Consideration. The purchase price of Common Stock
acquired pursuant to a Restricted Stock Award Agreement shall be paid either:
(i) in cash at the time of purchase; (ii) at the discretion of the Committee,
according to a deferred payment or other similar arrangement with the
Participant; or (iii) in any other form of legal consideration that may be
acceptable to the Committee in its discretion; provided, however, that at any
time that the Company is incorporated in Delaware, then payment of the Common
Stock's "par value," as defined in the Delaware General Corporation Law, shall
not be made by deferred payment;

                  (iii) Vesting. Shares of Common Stock acquired under a
Restricted Stock Award Agreement may, but need not, be subject to a repurchase
option in favor of the Company in accordance with a vesting schedule to be
determined by the Committee;

                  (iv) Restrictions. Restricted Stock received or acquired
pursuant to a Restricted Stock Award Agreement may be subject to (a)
restrictions on the sale or other disposition thereof, (b) rights of the Company
to reacquire such Restricted Stock at the purchase price, if any, originally
paid therefor upon either termination of the Participant's status as an
Employee, Director or Consultant within specified periods or failure of the
Company to achieve performance goals (which may include any one or more of the
following: return on total capital employed, earnings per share, return on
stockholders' equity, and other appropriate criteria) established by the
Committee, (c) representation by the employee that he or she intends to acquire
Restricted Stock for investment and not for resale, and (d) such other
restrictions, conditions and terms as the Committee deems appropriate.

                  (v) Dividends. The Participant shall be entitled to all
dividends paid with respect to Restricted Stock during any period the Restricted
Stock is subject to restrictions and shall not be required to return any such
dividends to the Company in the event of the forfeiture of the Restricted Stock.

                  (vi) The Participant shall be entitled to vote the Restricted
Stock during any period the Restricted Stock is subject to restrictions.

                  (vii) The Committee shall determine whether Restricted Stock
is to be delivered to the Participant with an appropriate legend imprinted on
the certificate of if the shares of such stock are to be deposited in escrow
pending removal of the restrictions.

                  (viii) Transferability. Rights to acquire shares of Common
Stock under the Restricted Stock Agreement shall be transferable by the
Participant only upon such terms and conditions as are set forth in the
Restricted Stock Agreement, as the Committee shall determine in its discretion,
so long as Common Stock awarded under the Restricted Stock Agreement remains
subject to the terms of the Restricted Stock Agreement.

         (c) PERFORMANCE AWARDS. Performance Awards shall consist of Common
Stock, monetary units or some combination thereof, to be issued without any
payment therefor, in the event that certain performance goals established by the
Committee are achieved during a

<PAGE>

specified period of time. The goals established by the Committee may include any
one or more of the following: continued service with the Company, return on
average total capital employed, earnings per share, return on stockholders'
equity, and such other goals as may be established by the Committee. In the
event the minimum Corporate goal is not achieved at the conclusion of the
specified time period, no payment shall be made to the Participant. Actual
payment of the award earned shall be in cash or in Common Stock or in a
combination of both, in a single sum or in periodic installments, all as the
Committee in its sole discretion determines. If Common Stock is used, the
Participant shall not have the right to vote and receive dividends until the
goals are achieved and the actual shares of Common Stock are issued.

8.       COVENANTS OF THE COMPANY.

         (a) SECURITIES LAW COMPLIANCE. The Company shall seek to obtain from
each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Stock Awards and to issue and sell shares
of Common Stock upon exercise of the Stock Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain
from any such regulatory commission or agency the authority which counsel for
the Company deems necessary for the lawful issuance and sale of Common Stock
under the Plan, the Company shall be relieved from any liability for failure to
issue and sell Common Stock upon exercise of such Stock Awards unless and until
such authority is obtained.

9.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of Common Stock pursuant to Stock Awards shall
constitute general funds of the Company.

10.      MISCELLANEOUS.

         (a) ACCELERATION OF EXERCISABILITY AND VESTING. The Committee shall
have the power to accelerate the time at which a Stock Award may first be
exercised or the time during which a Stock Award or any part thereof will vest
in accordance with the Plan, notwithstanding the provisions in the Stock Award
stating the time at which it may first be exercised or the time during which it
will vest.

         (b) STOCKHOLDER RIGHTS. No Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of
Common Stock subject to such Stock Award unless and until such Participant has
satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

         (c) NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall confer upon
any Participant any right to continue to serve the Company or an Affiliate in
the capacity in effect at the time the Stock Award was granted or shall affect
the right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and for any reason, (ii) the service of a
Consultant pursuant to the terms of such Consultant's agreement with the Company
or an Affiliate or (iii) the service of a Director pursuant to the bylaws of the
Company or an Affiliate,

<PAGE>

and any applicable provisions of the corporate law of the state in which the
Company or the Affiliate is incorporated, as the case may be.

         (d) INCENTIVE STOCK OPTION LIMITATION. To the extent that the aggregate
Fair Market Value (determined at the time of grant) of Common Stock with respect
to which Incentive Stock Options are exercisable for the first time by any
Optionholder during any calendar year (under all Incentive Stock Option plans of
the Company and its Affiliates) exceeds one hundred thousand dollars ($100,000),
or such higher limit as set forth by applicable law, the Options or portions
thereof which exceed such limit (according to the order in which they were
granted) shall be treated as Nonstatutory Stock Options.

         (e) WITHHOLDING OBLIGATIONS. To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of Common
Stock under a Stock Award by any of the following means (in addition to the
Company's right to withhold from any compensation paid to the Participant by the
Company) or by a combination of such means: (i) tendering a cash payment; (ii)
authorizing the Company to withhold shares of Common Stock from the shares of
Common Stock otherwise issuable to the Participant as a result of the exercise
or acquisition of Common Stock under the Stock Award, provided, however, that no
shares of Common Stock are withheld with a value exceeding the minimum amount of
tax required to be withheld by law; or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

11.      ADJUSTMENTS UPON CHANGES IN STOCK.

         (a) CAPITALIZATION ADJUSTMENTS. If any change is made in, or other
event occurs with respect to, the Common Stock subject to the Plan, or subject
to any Stock Award, without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock
dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate
structure or other transaction not involving the receipt of consideration by the
Company), the Plan will be appropriately adjusted in the class(es) and maximum
number of securities subject to the Plan pursuant to Section 4(a) and 4(b) and
the maximum number of securities subject to award to any person pursuant to
Section 5(c), and the outstanding Stock Awards will be appropriately adjusted in
the class(es) and number of securities and price per share of Common Stock
subject to such outstanding Stock Awards. The Committee shall make such
adjustments, and its determination shall be final, binding and conclusive. (The
conversion of any convertible securities of the Company shall not be treated as
a transaction "without receipt of consideration" by the Company.)

         (b) DISSOLUTION OR LIQUIDATION. In the event of a dissolution or
liquidation of the Company, then all outstanding Stock Awards shall terminate
immediately prior to the completion of such dissolution or liquidation.

         (c) CORPORATE TRANSACTION. In the event Participant's employment with
the Company is terminated within twelve months of a Corporate Transaction by the
Company for a reason other than Cause or by the Participant for Good Reason, the
vesting and exercise period

<PAGE>

of such Participant's Stock Awards shall be accelerated in full to the date of
such termination of employment. For purposes of this Subsection 11.c, these
terms have the following meanings:

                  (i) "GOOD REASON". With respect to any Participant, (A) the
assignment to the Participant of any duties or any other action by the Company
which results in a significant diminution in the Participant's position,
authority, duties or responsibilities, excluding for this purpose an isolated,
unsubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of notice thereof; (B) any
material reduction in the Participant's Compensation from the Company,
opportunity to earn annual bonuses, or other compensation or employee benefits,
other than as a result of an isolated and inadvertent action not taken in bad
faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Participant; (C) the elimination of the Participant's
position with the Company which results in a significant diminution of his
authority, duties or responsibilities; or (D) any purported termination of the
Plan otherwise than as expressly permitted by the Plan. For purposes of the
Plan, any good faith determination of "Good Reason" made by the Participant
shall be conclusive.

                  (ii) Cause. With respect to any Participant: (A) the willful
and continued failure of the Participant to perform substantially the
Participant's duties with the Company (other than any such failure resulting
from incapacity due to physical or mental illness), after a written demand for
substantial performance is delivered by the Company to the Participant which
specifically identifies the manner in which the Participant has not
substantially performed the Participant's duties, or (B) the willful engaging by
the Participant in illegal conduct or gross misconduct which is materially and
demonstrably injurious to the Company. For purposes of this definition, no act
or failure to act on the part of the Participant shall be considered "willful"
unless it is done, or omitted to be done, by the Participant in bad faith or
without reasonable belief that the Participant's action or omission was in the
best interests of the Company.

In the event of a Corporate Transaction, any surviving corporation or acquiring
corporation may assume any or all Stock Awards outstanding under the Plan or may
substitute similar stock awards for Stock Awards outstanding under the Plan (it
being understood that similar stock awards include awards to acquire the same
consideration paid to the stockholders or the Company, as the case may be,
pursuant to the Corporate Transaction). Notwithstanding the preceding, the
Committee shall in any event, retain the discretion to take any other action
with respect to such Stock Awards as it may equitably determine.

12.      AMENDMENT OF THE PLAN AND STOCK AWARDS.

         (a) AMENDMENT OF PLAN. The Board at any time, and from time to time,
may amend the Plan. However, except as provided in Section 11 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless
approved by the stockholders of the Company to the extent required by applicable
law.

         (b) STOCKHOLDER APPROVAL. The Board may, in its sole discretion, submit
any other amendment to the Plan for stockholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations

<PAGE>

thereunder regarding the exclusion of performance-based compensation from the
limit on corporate deductibility of compensation paid to certain executive
officers.

         (c) CONTEMPLATED AMENDMENTS. It is expressly contemplated that the
Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees with the maximum benefits provided or to be
provided under the provisions of the Code and the regulations promulgated
thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

         (d) NO IMPAIRMENT OF RIGHTS. Rights under any Stock Award granted
before amendment of the Plan shall not be impaired by any amendment of the Plan
unless (i) the Company requests the consent of the Participant and (ii) the
Participant consents in writing.

         (e) AMENDMENT OF STOCK AWARDS. The Committee at any time, and from time
to time, may amend the terms of any one or more Stock Awards; provided, however,
that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Committee requests the consent of the Participant and
(ii) the Participant consents in writing.

13.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a) PLAN TERMINATION. The Board may suspend or terminate the Plan at
any time. Unless sooner terminated by the Board, the Plan shall terminate on the
day before the fifth (5th) anniversary of the date the Plan is approved by the
stockholders of the Company. No Stock Awards may be granted under the Plan while
the Plan is suspended or after it is terminated.

         (b) NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan
shall not impair rights and obligations under any Stock Award granted while the
Plan is in effect except with the written consent of the Participant.

14.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective as determined by the Board, but no
Stock Award shall be exercised unless and until the Plan has been approved by
the stockholders of the Company, which approval shall be within twelve (12)
months before or after the date the Plan is adopted by the Board.

15.      CHOICE OF LAW.

         The law of the State of Delaware shall govern all questions concerning
the construction, validity and interpretation of this Plan, without regard to
such state's conflict of laws rules.

<PAGE>

         This Plan is hereby adopted on behalf of the Company this 25th day of
September, 2001.

                                     D & K HEALTHCARE RESOURCES, INC.

                                     By /s/ J. Hord Armstrong, III
                                        ----------------------------------------
                                        Chairman and Chief Executive Officer<PAGE>

                                                             [Execution Version]

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A

                   $35,500,000  1.840% Asset-Backed Notes, Class A-1
                   $75,000,000  2.470% Asset-Backed Notes, Class A-2
                   $58,000,000  3.175% Asset-Backed Notes, Class A-3
                   $74,000,000  3.983% Asset-Backed Notes, Class A-4
                   $ 7,500,000  8.500% Asset-Backed Notes, Class B

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

                                    INDENTURE

                           Dated as of August 1, 2002

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

                               JPMORGAN CHASE BANK
                                Indenture Trustee

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                         Page
                                                                                                         ----
<S>                                                                                                       <C>
ARTICLE I      Definitions..................................................................................3

     SECTION 1.1.     Definitions...........................................................................3
     SECTION 1.2.     Incorporation by Reference of Trust Indenture Act.....................................3
     SECTION 1.3.     Rules of Construction.................................................................3

ARTICLE II     The Notes....................................................................................4

     SECTION 2.1.     Form. 4
     SECTION 2.2.     Execution, Authentication and Delivery................................................4
     SECTION 2.3.     Temporary Notes.......................................................................5
     SECTION 2.4.     Registration; Registration of Transfer and Exchange...................................5
     SECTION 2.5.     Mutilated, Destroyed, Lost or Stolen Notes............................................9
     SECTION 2.6.     Persons Deemed Owners.................................................................9
     SECTION 2.7.     Access to List of Noteholders' Names and Addresses....................................9
     SECTION 2.8.     Maintenance of Office or Agency......................................................10
     SECTION 2.9.     Payment of Principal and Interest; Defaulted Interest................................10
     SECTION 2.10.    Cancellation.........................................................................11
     SECTION 2.11.    Release of Pledged Property..........................................................11

ARTICLE III    Covenants...................................................................................11

     SECTION 3.1.     Payment of Principal and Interest....................................................11
     SECTION 3.2.     Maintenance of Office or Agency......................................................12
     SECTION 3.3.     Money for Payments to be Held in Trust...............................................12
     SECTION 3.4.     Existence............................................................................13
     SECTION 3.5.     Protection of Pledged Property.......................................................13
     SECTION 3.6.     Opinions as to Pledged Property......................................................14
     SECTION 3.7.     Performance of Obligations; Servicing of Receivables.................................15
     SECTION 3.8.     Negative Covenants...................................................................16
     SECTION 3.9.     Annual Statement as to Compliance....................................................16
     SECTION 3.10.    Issuer May Consolidate, Etc. Only on Certain Terms...................................17
     SECTION 3.11.    Successor or Transferee..............................................................19
     SECTION 3.12.    No Other Business....................................................................19
     SECTION 3.13.    No Borrowing.........................................................................19
     SECTION 3.14.    Servicer's Obligations...............................................................19
     SECTION 3.15.    Guarantees, Loans, Advances and Other Liabilities....................................19
     SECTION 3.16.    Capital Expenditures.................................................................19
     SECTION 3.17.    Compliance with Laws.................................................................19
     SECTION 3.18.    Restricted Payments..................................................................20
     SECTION 3.19.    Notice of Events of Default..........................................................20
     SECTION 3.20.    Further Instruments and Acts.........................................................20
     SECTION 3.21.    Income Tax Characterization..........................................................20
</TABLE>

                                       i

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                       <C>
ARTICLE IV     Satisfaction and Discharge..................................................................20

     SECTION 4.1.     Satisfaction and Discharge of Indenture..............................................20
     SECTION 4.2.     Application of Trust Money...........................................................21
     SECTION 4.3.     Repayment of Moneys Held by Note Paying Agent........................................22

ARTICLE V      Remedies....................................................................................22

     SECTION 5.1.     Events of Default....................................................................22
     SECTION 5.2.     Rights Upon Event of Default.........................................................23
     SECTION 5.3.     Collection of Indebtedness and Suits for Enforcement by Indenture Trustee............24
     SECTION 5.4.     Remedies.............................................................................26
     SECTION 5.5.     Optional Preservation of the Pledged Property........................................28
     SECTION 5.6.     Priorities...........................................................................28
     SECTION 5.7.     Limitation of Suits..................................................................29
     SECTION 5.8.     Unconditional Rights of Noteholders To Receive Principal and Interest................30
     SECTION 5.9.     Restoration of Rights and Remedies...................................................30
     SECTION 5.10.    Rights and Remedies Cumulative.......................................................30
     SECTION 5.11.    Delay or Omission Not a Waiver.......................................................31
     SECTION 5.12.    Control by Noteholders...............................................................31
     SECTION 5.13.    Waiver of Past Defaults..............................................................31
     SECTION 5.14.    Undertaking for Costs................................................................32
     SECTION 5.15.    Waiver of Stay or Extension Laws.....................................................32
     SECTION 5.16.    Action on Notes......................................................................32
     SECTION 5.17.    Performance and Enforcement of Certain Obligations...................................32
     SECTION 5.18.    Subrogation..........................................................................33
     SECTION 5.19.    Preference Claims; Direction of Proceedings..........................................33

ARTICLE VI     The Indenture Trustee.......................................................................34

     SECTION 6.1.     Duties of Indenture Trustee..........................................................34
     SECTION 6.2.     Rights of Indenture Trustee..........................................................37
     SECTION 6.3.     Individual Rights of Indenture Trustee...............................................39
     SECTION 6.4.     Indenture Trustee's Disclaimer.......................................................39
     SECTION 6.5.     Notice of Defaults...................................................................39
     SECTION 6.6.     Reports by Indenture Trustee to Holders..............................................39
     SECTION 6.7.     Compensation and Indemnity...........................................................39
     SECTION 6.8.     Replacement of Indenture Trustee.....................................................40
     SECTION 6.9.     Successor Indenture Trustee by Merger................................................42
     SECTION 6.10.    Appointment of Co-Trustee or Separate Trustee........................................42
     SECTION 6.11.    Eligibility..........................................................................44
     SECTION 6.12.    Preferential Collection of Claims Against Issuer.....................................44
     SECTION 6.13.    Representations and Warranties of the Indenture Trustee..............................44
     SECTION 6.14.    Valid and Binding Indenture..........................................................44
     SECTION 6.15.    Waiver of Setoffs....................................................................45
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                       <C>
     SECTION 6.16.    Control by the Controlling Party.....................................................45

ARTICLE VII    Noteholders' Lists and Communications.......................................................45

     SECTION 7.1.     Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders............45
     SECTION 7.2.     Preservation of Information; Communications to Noteholders...........................45
     SECTION 7.3.     Reports by Issuer....................................................................46
     SECTION 7.4.     Reports by Indenture Trustee.........................................................46

ARTICLE VIII   Collection of Money;  Releases..............................................................46

     SECTION 8.1.     Collection of Money..................................................................46
     SECTION 8.2.     Release of Pledged Property..........................................................47
     SECTION 8.3.     Opinion of Counsel...................................................................47

ARTICLE IX     Supplemental Indentures.....................................................................47

     SECTION 9.1.     Supplemental Indentures Without Consent of Noteholders...............................47
     SECTION 9.2.     Supplemental Indentures with Consent of Noteholders..................................48
     SECTION 9.3.     Execution of Supplemental Indentures.................................................50
     SECTION 9.4.     Effect of Supplemental Indenture.....................................................50
     SECTION 9.5.     Conformity With Trust Indenture Act..................................................50
     SECTION 9.6.     Reference in Notes to Supplemental Indentures........................................50

ARTICLE X      Redemption of Notes.........................................................................51

     SECTION 10.1.    Redemption...........................................................................51
     SECTION 10.2.    Form of Redemption Notice............................................................51
     SECTION 10.3.    Notes Payable on Redemption Date.....................................................51

ARTICLE XI     Miscellaneous...............................................................................52

     SECTION 11.1.    Compliance Certificates and Opinions, etc............................................52
     SECTION 11.2.    Form of Documents Delivered to Indenture Trustee.....................................53
     SECTION 11.3.    Acts of Noteholders..................................................................54
     SECTION 11.4.    Notices, etc., to Indenture Trustee, Issuer and Rating Agencies......................55
     SECTION 11.5.    Notices to Noteholders; Waiver.......................................................56
     SECTION 11.6.    Conflict with Trust Indenture Act....................................................56
     SECTION 11.7.    Effect of Headings and Table of Contents.............................................56
     SECTION 11.8.    Successors and Assigns...............................................................56
     SECTION 11.9.    Separability.........................................................................57
     SECTION 11.10.   Benefits of Indenture................................................................57
     SECTION 11.11.   Legal Holidays.......................................................................57
     SECTION 11.12.   GOVERNING LAW........................................................................57
     SECTION 11.13.   Counterparts.........................................................................57
     SECTION 11.14.   Recording of Indenture...............................................................57
     SECTION 11.15.   Trust Obligation.....................................................................57
     SECTION 11.16.   No Petition..........................................................................58
</TABLE>

                                      iii
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                       <C>

     SECTION 11.17.   Inspection...........................................................................58
     SECTION 11.18.   Rights of Note Insurer as Controlling Party..........................................59
     SECTION 11.19.   Effect of Policy Expiration Date.....................................................59
</TABLE>

                                       iv
<PAGE>

                              ANNEXES AND EXHIBITS

Annex A        Defined Terms

Exhibit A-1    Form of Class A-1 Note
Exhibit A-2    Form of Class A-2 Note
Exhibit A-3    Form of Class A-3 Note
Exhibit A-4    Form of Class A-4 Note
Exhibit A-5    Form of Class B Note
Exhibit B      Form of Depository Agreement
Exhibit C-1    Form of "Qualified Institutional Buyer" Transferee's Certificate
Exhibit C-2    Form of "Accredited Investor" Transferee's Certificate
Exhibit C-3    Form of "Registered Certificate" Transferee's Certificate
Exhibit C-4    Form of Transferor's Certificate
Exhibit C-5    Form of Certificate as to ERISA Matters

                                       v
<PAGE>

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A

                  Reconciliation and Tie between the Indenture
                       dated as of August 1, 2002 and the
                     Trust Indenture Act of 1939, as amended

                 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
                    ACT OF 1939 AND INDENTURE PROVISIONS(1)*

    Trust Indenture Act Section                         Indenture Section
    ---------------------------                         -----------------
         (Section) 310(a)(1)                             (Section) 6.11
               (a)(2)                                          6.11
               (a)(3)                                          6.10
               (a)(4)                                     Not Applicable
                (b)                                            6.11
                (c)                                       Not Applicable
               311(a)                                          6.12
                (b)                                            6.12
               312(a)                                          7.1
                (b)                                            7.2
                (c)                                            7.2
               313(a)                                          7.4
                (b)                                            7.4
                (c)                                          7.3, 7.4
                (d)                                            7.3
             314(a)(4)                                         3.9
                (b)                                       Not Applicable
                (c)                                         2.11, 8.2
                (d)                                         2.11, 8.2
                (e)                                            11.1
               315(a)                                          6.1
                (b)                                            6.5
                (c)                                            6.1
                (d)                                            6.1
                (e)                                            5.14
       316(a) (last sentence)                             Not Applicable
             (a)(1)(A)                                         5.3
             (a)(1)(B)                                         5.13
             317(a)(1)                                         5.4
               (a)(2)                                         5.3(e)
                (b)                                            3.3

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

(1) This reconciliation and tie shall not, for any purpose, be deemed to be part
of the within indenture.

                                       vi
<PAGE>

               318(a)                                     Not Applicable
                (b)                                       Not Applicable
                (c)                                       Not Applicable

                                       vii
<PAGE>

     INDENTURE dated as of August 1, 2002, between LONG BEACH ACCEPTANCE AUTO
RECEIVABLES TRUST 2002-A, a Delaware business trust (the "Issuer"), and JPMORGAN
CHASE BANK, a New York banking corporation, as indenture trustee (the "Indenture
Trustee").

     Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer's 1.840% Asset-Backed
Notes, Class A-1, 2.470% Asset-Backed Notes, Class A-2, 3.175% Asset-Backed
Notes, Class A-3, 3.983% Asset-Backed Notes, Class A-4 (collectively the "Class
A Notes") and 8.500% Asset-Backed Notes, Class B (the "Class B Notes" and,
together with the Class A Notes, the "Notes").

     As security for the payment and performance by the Issuer of its
obligations under this Indenture and the Notes, the Issuer has agreed to assign
the Pledged Property (as defined below) as collateral to the Indenture Trustee
for the benefit of the Noteholders.

     Financial Security Assurance Inc. (the "Note Insurer"), for the benefit of
the Class A Noteholders, has issued and delivered a financial guaranty insurance
policy, dated the Closing Date (with endorsements, the "Policy"), pursuant to
which the Note Insurer guarantees Scheduled Payments, as defined in the
Insurance Agreement.

     As an inducement to the Note Insurer to issue and deliver the Policy, the
Issuer and the Note Insurer have executed and delivered the Insurance and
Indemnity Agreement, dated as of August 1, 2002 (as amended from time to time,
the "Insurance Agreement"), among the Note Insurer, the Issuer, Long Beach
Acceptance Corp., a Delaware corporation, ("LBAC") and the Long Beach Acceptance
Receivables Corp., a Delaware corporation as transferor, (the "Transferor").

     As an additional inducement to the Note Insurer to issue the Policy, and as
security for the performance by the Issuer of its obligations under this
Indenture and as security for the performance by the Issuer of its obligations
under this Indenture, the Issuer has agreed to assign the Pledged Property (as
defined below) as collateral to the Indenture Trustee for the benefit of the
Noteholders and the Note Insurer, as their respective interests may appear.

<PAGE>

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Indenture Trustee for the benefit of
the Noteholders and the Note Insurer all of the Issuer's right, title and
interest in and to the following property (the "Pledged Property") now owned or
hereafter acquired:

     (i)       the Receivables listed in Schedule A hereto, all monies received
               on the Receivables after the Cutoff Date and, with respect to the
               Receivables which are Precomputed Receivables, the related
               Payahead Amount, and all Liquidation Proceeds and Recoveries
               received with respect to such Receivables;

     (ii)      the security interests in the related Financed Vehicles granted
               by the related Obligors pursuant to the Receivables, and any
               other interest of the Transferor in such Financed Vehicles,
               including, without limitation, the certificates of title and any
               other evidence of ownership with respect to such Financed
               Vehicles;

     (iii)     any proceeds from claims on any physical damage, credit life and
               credit accident and health insurance policies or certificates or
               the VSI Policy, if any, relating to the related Financed Vehicles
               or the related Obligors, including any rebates and premiums;

     (iv)      property (including the right to receive future Liquidation
               Proceeds) that secures a Receivable, and that has been acquired
               by or on behalf of the Trust pursuant to the liquidation of such
               Receivable;

     (v)       the Purchase Agreement, the Sale and Servicing Agreement and the
               Guarantee, including, without limitation, a direct right to cause
               LBAC to purchase Receivables from the Trust upon the occurrence
               of a breach of any of the representations and warranties
               contained in Section 3.2(b) of the Purchase Agreement, or the
               failure of LBAC to timely comply with its obligations pursuant to
               Section 5.5 of the Purchase Agreement;

     (vi)      refunds for the costs of extended service contracts with respect
               to the related Financed Vehicles, refunds of unearned premiums
               with respect to credit life and credit accident and health
               insurance policies or certificates covering a related Obligor or
               Financed Vehicle or his or her obligations with respect to such
               Financed Vehicle and any recourse to Dealers for any of the
               foregoing;

     (vii)     the Legal Files and the Receivable Files related to each
               Receivable and any and all other documents that LBAC keeps on
               file in accordance with its customary procedures relating to the
               Receivables, the related Obligors or the related Financed
               Vehicles;

     (viii)    all amounts and property from time to time held in or credited to
               the Collection Account, the Note Account and, for the benefit of
               the Class B Noteholders only, the Class B Reserve Account;

     (ix)      all amounts and property from time to time held in or credited to
               the Lock-Box Account, to the extent such amounts and property
               relate to the Receivables;

                                       2
<PAGE>

     (x)       any proceeds from recourse against Dealers (other than any
               Chargeback Obligations), including, without limitation, any
               Dealer Title Guaranties with respect to the sale of the
               Receivables; and

     (xi)      the proceeds of any and all of the foregoing.

The foregoing Grant is made in trust to the Indenture Trustee for the benefit of
the Noteholders and the Note Insurer. The Indenture Trustee hereby acknowledges
such Grant, accepts the trusts under this Indenture in accordance with the
provisions of this Indenture and agrees to perform its duties required in this
Indenture to the end that the interests of such parties, recognizing the
priorities of their respective interests may be adequately and effectively
protected.

                                    ARTICLE I

                                   Definitions
                                   -----------

         SECTION 1.1. Definitions. Whenever used in this Indenture, capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
Annex A attached hereto.

         SECTION 1.2. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the Trust Indenture Act of
1939, as amended (the "TIA"), such provision is incorporated by reference in and
made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

         "Commission" means the Securities and Exchange Commission.

         "indenture securities" means the Notes.

         "indenture security holder" means a Noteholder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Indenture
Trustee.

         "obligor" on the indenture securities means the Issuer.

         All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule have
the meaning assigned to them by such definitions.

         SECTION 1.3. Rules of Construction. Unless the context otherwise
requires:

         (i) a term has the meaning assigned to it;

         (ii) an accounting term not otherwise defined has the meaning assigned
     to it in accordance with generally accepted accounting principles as in
     effect from time to time;

         (iii) "or" is not exclusive;

                                       3
<PAGE>

         (iv) "including" means including without limitation; and

         (v) words in the singular include the plural and words in the plural
     include the singular.

                                   ARTICLE II

                                    The Notes
                                    ---------

         SECTION 2.1. Form. The Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes, the Class A-4 Notes and the Class B Notes shall be in substantially
the forms set forth in Exhibits A-1, A-2, A-3, A-4 and A-5, respectively, with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon
as may, consistently herewith, be determined by the officers executing such
Notes, as evidenced by their execution of the Notes. Any portion of the text of
any Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Note.

         The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

         Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibits A-1, A-2, A-3, A-4 and A-5 respectively, are
part of the terms of this Indenture.

         SECTION 2.2. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by an authorized representative of the Owner
Trustee. The signature of any such authorized representative on the Notes may be
manual or facsimile.

         Notes bearing the manual or facsimile signature of individuals who were
at any time authorized representatives of the Owner Trustee shall bind the
Issuer, notwithstanding that such individuals or any of them have ceased to hold
such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

         The Indenture Trustee shall, upon receipt of the Policy and the Issuer
Order, authenticate and deliver (i) Class A-1 Notes for original issue in an
aggregate principal amount of $35,500,000, (ii) Class A-2 Notes for original
issue in an aggregate principal amount of $75,000,000 (iii) Class A-3 Notes for
original issue in an aggregate principal amount of $58,000,000, (iv) Class A-4
Notes for original issue in an aggregate principal amount of $74,000,000 and (v)
Class B Notes for original issue in an aggregate principal amount of $7,500,000.
The Notes outstanding at any time may not exceed such amounts except as provided
in Section 2.5.

         The Notes shall be issuable as registered Notes. The Class A Notes and
the Class B Notes will be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof.

                                       4
<PAGE>

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual or facsimile signature of one of
its authorized signatories, and such certificate upon any Note shall be
conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder.

         SECTION 2.3. Temporary Notes. Pending the preparation of Definitive
Notes, the Issuer may execute and, upon receipt of an Issuer Order, the
Indenture Trustee shall authenticate and deliver, temporary Notes which are
printed, lithographed, typewritten, mimeographed or otherwise produced, of the
tenor of the Definitive Notes in lieu of which they are issued and with such
variations not inconsistent with the terms of this Indenture as the officers
executing such Notes may determine, as evidenced by their execution of such
Notes.

         If temporary Notes are issued, the Issuer will cause Definitive Notes
to be prepared without unreasonable delay. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.2, without charge to the Noteholder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefor a like principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as Definitive Notes.

         SECTION 2.4. Registration; Registration of Transfer and Exchange. (a)
The Issuer shall cause to be kept a register (the "Note Register") in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Notes and the registration of transfers and
exchanges of Notes. The Indenture Trustee shall be "Note Registrar" for the
purpose of registering Notes and transfers and exchanges of Notes as herein
provided. Upon any resignation of any Note Registrar, the Issuer shall promptly
appoint a successor or, if it elects not to make such an appointment, assume the
duties of Note Registrar.

         If a Person other than the Indenture Trustee is appointed by the Issuer
as Note Registrar, the Issuer will give the Indenture Trustee prompt written
notice of the appointment of such Note Registrar and of the location, and any
change in the location, of the Note Register, and the Indenture Trustee shall
have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to
conclusively rely upon a certificate executed on behalf of the Note Registrar by
an authorized signatory thereof as to the names and addresses of the Noteholders
of the Notes and the principal amounts and number of such Notes.

         No transfer of a Class B Note shall be made unless (I) (a) such
transfer (i) is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or (ii) is exempt from
the registration requirements under the Securities Act and such state securities
laws or (b) the Note Registrar is notified by such transferee that, with respect
to the Class B Notes, such Class B Note will be registered in the name of the
Clearing Agency or its nominee and shall be held by such transferee in
book-entry form through the Clearing Agency, and (II) such transfer is to a
Person that satisfies the requirements of paragraph

                                       5
<PAGE>

(a)(2)(i) or (a)(2)(ii) of Rule 3a-7 as then in effect or any successor rule
("Rule 3a-7") under the Investment Company Act. Each prospective purchaser of a
Class B Note that is a Non-Registered Note not held in book-entry form shall
deliver a completed and duly executed Transferee's Certificate (in the form of
Exhibit C-1 for "qualified institutional buyers" or Exhibit C-2 for "accredited
investors"), and each prospective purchaser of a Class B Note that is a
Registered Note not held in book-entry form shall deliver a completed and duly
executed Transferee's Certificate in the form of Exhibit C-3, to the Indenture
Trustee and to the Transferor for inspection prior to effecting any requested
transfer. Each prospective purchaser of a beneficial interest in a Class B Note
held in book-entry form shall be deemed to make the representations set forth in
one of the aforementioned exhibits as applicable. Each prospective transferor of
a Class B Note that is a Non-Registered Note not held in book-entry form (other
than with respect to the initial purchase of any such Class B Note by Greenwich
Capital Markets, Inc. or any affiliate thereof) shall deliver a completed and
duly executed Transferor's Certificate in the form of Exhibit C-4 to the
Indenture Trustee for inspection prior to effecting any requested transfer. The
Issuer and the Indenture Trustee may rely conclusively upon the information
contained in any such Transferee's Certificate and Transferor's Certificate in
the absence of knowledge to the contrary. In connection with any transfer (other
than the transfer of any Class B Note that is or has become a Registered Note on
or before such transfer or any transfer of a Class B Note held in book-entry
form), the Indenture Trustee may (except in the case of (x) the initial purchase
of any such Class B Note by Greenwich Capital Markets, Inc. or any affiliate
thereof, (y) a transfer to a "qualified institutional buyer" who delivers a
Transferee's Certificate in the form of Exhibit C-1 or (z) a transfer to an
institutional "accredited investor" who delivers a Transferee's Certificate in
the form of Exhibit C-2)) require an Opinion of Counsel to the effect that such
transfer may be effected without registration under the Securities Act, which
Opinion of Counsel, if so required, shall be addressed to the Issuer and the
Indenture Trustee and shall be secured at the expense of the Holder. The
Indenture Trustee may rely upon the representation of any transferee made to the
Indenture Trustee, and upon such Opinion of Counsel, and shall be fully
protected in so doing. Any Note Owners shall be deemed to have agreed to these
restrictions on transfer.

         No transfer of a Note shall be made to any Person unless the Indenture
Trustee has received a certificate (substantially in the form of Exhibit C-5
hereto) from such transferee to the effect that such transferee (a) is not a
Plan, and is not acting on behalf of or investing the assets of a Plan or (b) is
acquiring a Class A Note and is entitled to exemptive relief pursuant to a
Department of Labor prohibited transaction class exemption with respect to its
acquisition and continued holding of such Class A Note. The preparation and
delivery of the certificate referred to above shall not be an expense of the
Indenture Trustee or the Transferor but shall be borne by the transferee. Each
transferee of a beneficial ownership interest in a book-entry Note shall be
deemed to make one of the foregoing representations.

         Under no circumstances may an institutional "accredited investor", as
defined under Regulation D of the Securities Act, take delivery in the form of a
beneficial interest in a book-entry Class B Note if such purchaser is not a
"qualified institutional buyer" as defined under Rule 144A under the Securities
Act.

         (b) With respect to the Notes held in book-entry form, the Notes shall
be registered in the name of a nominee designated by the Clearing Agency (and
may be aggregated

                                       6
<PAGE>

as to denominations with other Notes held by the Clearing Agency). With respect
to Notes held in book-entry form:

                    (1) the Note Registrar and the Indenture Trustee will be
               entitled to deal with the Clearing Agency for all purposes of
               this Indenture (including the payment of principal of and
               interest on the Notes and the giving of instructions or
               directions hereunder) as the sole holder of the Notes, and shall
               have no obligation to the Note Owners;

                    (2) the rights of Note Owners will be exercised only through
               the Clearing Agency and will be limited to those established by
               law and agreements between such Note Owners and the Clearing
               Agency and/or the Clearing Agency Participants pursuant to the
               Depository Agreement;

                    (3) whenever this Indenture or any of the Basic Documents
               requires or permits actions to be taken based upon instructions
               or directions of Holders of Notes evidencing a specified
               percentage of the Note Balance, the Clearing Agency will be
               deemed to represent such percentage only to the extent that it
               has received instructions to such effect from Note Owners and/or
               Clearing Agency Participants owning or representing,
               respectively, such required percentage of the beneficial interest
               in the Notes and has delivered such instructions to the Indenture
               Trustee; and

                    (4) without the consent of the Issuer and the Indenture
               Trustee, no such Note may be transferred by the Clearing Agency
               except to a successor Clearing Agency that agrees to hold such
               Class B Note for the account of the Class B Note Owners or except
               upon the election of the Class B Note Owner thereof or a
               subsequent transferee to hold such Note in physical form.

         Neither the Indenture Trustee nor the Note Registrar shall have any
responsibility to monitor or restrict the transfer of beneficial ownership in
any Note an interest in which is transferable through the facilities of the
Clearing Agency.

         If (i)(A) the Issuer advises the Indenture Trustee in writing that the
Clearing Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Notes as described in the Depository
Agreement and (B) the Issuer is unable to locate a qualified successor with
respect to which (unless a Note Insurer Default has occurred and is continuing)
the Note Insurer has provided its prior written consent, (ii) the Issuer at its
option advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency, or (iii) after the occurrence of
an Event of Default, the Note Insurer (or, if a Note Insurer Default has
occurred and is continuing, the Majorityholders) advise the Indenture Trustee
and the Clearing Agency through the Clearing Agency Participants in writing that
the continuation of a book-entry system through the Clearing Agency with respect
to such class is no longer in the best interests of the related Note Owners,
then the Indenture Trustee shall notify all such Note Owners, through the
Clearing Agency, and the Note Insurer of the occurrence of any such event and of
the availability of Definitive Notes to such Note Owners requesting the same.
Upon surrender to the Indenture Trustee of the related Notes by the Clearing
Agency accompanied by registration instructions from the Clearing Agency, the
Issuer shall issue

                                       7
<PAGE>

definitive Notes and deliver such definitive Notes in accordance with the
instructions of the Clearing Agency. None of the Issuer, the Note Registrar nor
the Indenture Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee
shall recognize the Holders of the Definitive Notes as Noteholders hereunder.
The Indenture Trustee shall not be liable if the Transferor is unable to locate
a qualified successor Clearing Agency.

         (c) The Class B Notes, until such time, if at all, as they become
Registered Notes, shall bear legends stating that they have not been registered
under the Securities Act and are subject to the restrictions on transfer
described in Section 2.4(a). By purchasing a Class B Note, each purchaser shall
be deemed to have agreed to such restrictions on transfer.

         (d) In order to preserve the exemption for resales and transfers
provided by Rule 144A under the Securities Act, the Issuer shall provide to any
Holder of a Non-Registered Note and any prospective purchaser designated by such
Holder, upon request of such Holder or such prospective purchaser, such
information required by Rule 144A as will enable the resale of such
Non-Registered Note to be made pursuant to Rule 144A. The Indenture Trustee
shall cooperate with the Issuer in providing the Issuer such information
regarding the Non-Registered Notes, the Receivables and other matters regarding
the Class B Notes as the Issuer shall reasonably request to meet its obligations
under the preceding sentence.

         (e) Upon surrender for registration of transfer of any Note at the
Corporate Trust Office, the Indenture Trustee shall have the Issuer execute, and
the Indenture Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes in authorized
denominations of a like aggregate principal amount.

         (f) At the option of a Noteholder, such Holder's Notes may be exchanged
for other Notes in authorized denominations of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at any such office or
agency. Whenever any Notes are so surrendered for exchange, the Indenture
Trustee shall have the Issuer execute, and the Indenture Trustee shall
authenticate and deliver the Notes that the Noteholder making the exchange is
entitled to receive. Every Note presented or surrendered for registration of
transfer or exchange shall be accompanied by a written instrument of transfer in
form satisfactory to the Issuer, the Indenture Trustee and the Note Registrar
duly executed by the Holder thereof or his attorney duly authorized in writing.

         (g) All Notes issued upon any registration of transfer or exchange of
Notes shall be the valid obligations of the Issuer, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

         (h) No service charge shall be made to a Noteholder for any
registration of transfer or exchange of Notes, but the Note Registrar may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes.

                                       8
<PAGE>

         (i) The preceding provisions of this section notwithstanding, the
Issuer shall not be required to make, and the Note Registrar shall not register
transfers or exchanges of Notes selected for redemption or of any Note for a
period of 15 days preceding the due date for any payment with respect to the
Note.

         SECTION 2.5. Mutilated, Destroyed, Lost or Stolen Notes. If (a) any
mutilated Note shall be surrendered to the Note Registrar, or if the Note
Registrar shall receive evidence to its satisfaction of the destruction, loss,
or theft of any Note and (b) there shall be delivered to the Note Registrar, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless, then in the absence of notice
that such Note shall have been acquired by a bona fide purchaser, the Issuer
shall execute, and the Indenture Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a
new Note of like tenor and denomination. In connection with the issuance of any
new Note under this Section 2.5, the Indenture Trustee and the Note Registrar
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate
Note issued pursuant to this Section 2.5 shall constitute valid obligations of
the Issuer, evidencing the same debt and entitled to the same benefits of this
Indenture, as if originally issued, whether or not the lost, stolen, or
destroyed Note shall be found at any time.

         SECTION 2.6. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Note Insurer and any agent of Issuer, the Indenture Trustee and the Note Insurer
may treat the Person in whose name any Note is registered (as of the Record
Date) as the owner of such Note for the purpose of receiving payments of
principal of and interest, if any, on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and none of the Issuer, the
Note Insurer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

         SECTION 2.7. Access to List of Noteholders' Names and Addresses. The
Indenture Trustee shall furnish or cause to be furnished to the Servicer or the
Note Insurer, at the expense of the Issuer, within 15 days after receipt by the
Indenture Trustee of a request therefor from the Servicer or the Note Insurer,
as the case may be, in writing, a list of the names and addresses of the
Noteholders as of the most recent Record Date. If three or more Class A
Noteholders or Class B Noteholders, as applicable, or one or more Class A
Noteholders or Class B Noteholders, as applicable, evidencing not less than 25%
of the Class A Note Balance or the Class B Note Balance, as applicable, apply in
writing to the Indenture Trustee, and such application states that the
applicants desire to communicate with other Noteholders with respect to their
rights under this Indenture or under the Notes and such application shall be
accompanied by a copy of the communication that such applicants propose to
transmit, then the Indenture Trustee shall, within five Business Days after the
receipt for such application, afford such applicants access during normal
business hours to the current list of Noteholders. Each Holder, by receiving and
holding a Note, shall be deemed to have agreed to hold none of the Issuer, the
Servicer, the Note Insurer, the Note Registrar or the Indenture Trustee
accountable by reason of the disclosure of its name and address, regardless of
the source from which such information was derived.

                                       9
<PAGE>

         SECTION 2.8. Maintenance of Office or Agency. The Indenture Trustee
shall maintain in the Borough of Manhattan, the City of New York, an office or
offices or agency or agencies where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Indenture
Trustee in respect of the Notes and this Indenture may be served. The Indenture
Trustee initially designates its office located at 450 West 33rd Street, 14th
floor, New York, New York 10001, as its office for such purposes. The Indenture
Trustee shall give prompt written notice to the Issuer and to Noteholders of any
change in the location of the Note Register or any such office or agency.

         SECTION 2.9. Payment of Principal and Interest; Defaulted Interest.

         (a) The Notes shall accrue interest as provided in the forms of the
Notes set forth in Exhibits A-1, A-2, A-3, A-4 and A-5, respectively, and such
interest shall be due and payable on each Payment Date, as specified therein.
Any installment of interest or principal, if any, payable on any Note which is
punctually paid or duly provided for by the Issuer on the applicable Payment
Date shall be paid as set forth in Section 5.6 of the Sale and Servicing
Agreement.

         (b) In furtherance of and in limitation of the foregoing, (i) each
Class A Noteholder, by its acceptance of a Class A Note, specifically
acknowledges that it has no right to or interest in any monies at any time held
in the Class B Reserve Account, and (ii) each Class B Noteholder, by its
acceptance of a Class B Note, specifically acknowledges that it has no right to
or interest in any monies at any time held pursuant to the Spread Account
Agreement prior to the release of such monies pursuant to Section 5.6(d)(i) of
the Sale and Servicing Agreement, such monies being held in trust for the
benefit of the Class A Noteholders and the Note Insurer.

         (c) The principal of each Note shall be payable in installments on each
Payment Date as provided in the forms of the Notes. Notwithstanding the
foregoing, the entire unpaid Note Balance of each Class of Notes shall be due
and payable, if not previously paid, on the date on which an Event of Default
shall have occurred and be continuing, if the Controlling Party has declared the
Notes to be immediately due and payable in the manner provided in Section 5.2.
All principal payments on each Class of Notes shall be made pro rata to the
Noteholders of each such Class entitled thereto. Upon written notice from the
Issuer, the Indenture Trustee shall notify the Person in whose name a Note is
registered at the close of business on the Record Date preceding the Payment
Date on which the Issuer expects that the final installment of principal of and
interest on such Note will be paid. Such notice shall be mailed or transmitted
by facsimile prior to such final Payment Date and shall specify that such final
installment will be payable only upon presentation and surrender of such Note
and shall specify the place where such Note may be presented and surrendered for
payment of such installment. Notices in connection with redemptions of Notes
shall be mailed to Noteholders as provided in Section 10.2.

         (d) If the Issuer defaults in a payment of interest on the Notes, and
such default is waived by the Controlling Party, the Issuer shall pay the Class
A-1 Interest Carryover Shortfall, the Class A-2 Interest Carryover Shortfall,
the Class A-3 Interest Carryover Shortfall, the Class A-4 Interest Carryover
Shortfall and the Class B Interest Carryover Shortfall to the related
Noteholders, as applicable, on the immediately following Payment Date.

                                       10
<PAGE>

         (e) Promptly following the date on which all principal of and interest
on the Class A Notes has been paid in full and the Class A Notes have been
surrendered to the Indenture Trustee, the Indenture Trustee shall, if the Note
Insurer has paid any amount in respect of the Class A Notes under the Policy or
otherwise which has not been reimbursed to it, deliver such surrendered Class A
Notes to the Note Insurer.

         SECTION 2.10. Cancellation. Subject to Section 2.9(d), all Notes
surrendered for payment, registration of transfer, exchange or redemption shall,
if surrendered to any Person other than the Indenture Trustee, be delivered to
the Indenture Trustee and shall be promptly canceled by the Indenture Trustee.
Subject to Section 2.9(d), the Issuer may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any manner whatsoever, and all
Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes canceled as
provided in this Section, except as expressly permitted by this Indenture.
Subject to Section 2.9(d), all canceled Notes may be held or disposed of by the
Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall timely direct by an Issuer
Order that such Notes be destroyed or returned to it; provided that such Notes
have not been previously disposed of by the Indenture Trustee prior to its
receipt of such Issuer Order.

         SECTION 2.11. Release of Pledged Property. The Indenture Trustee shall,
on or after the Termination Date, release and cause the Trust Collateral Agent
to release any remaining portion of the Pledged Property from the lien created
by this Indenture and deposit in the Collection Account any funds then on
deposit in any of the other Accounts. The Indenture Trustee shall release
property from the lien created by this Indenture pursuant to this Section 2.11
only upon receipt of an Issuer Request and, if required by the TIA, Independent
Certificates in accordance with Section 314(c) and 314(d)(1) of the TIA.

                                   ARTICLE III

                                    Covenants
                                    ---------

         SECTION 3.1. Payment of Principal and Interest. The Issuer will duly
and punctually pay the principal of and interest on the Notes in accordance with
the terms of the Notes and this Indenture. Without limiting the foregoing, the
Issuer will cause to be distributed on each Payment Date (a) all amounts on
deposit in the Note Account deposited therein pursuant to the Sale and Servicing
Agreement for the benefit of the Class A-1 Notes, to the Class A-1 Noteholders,
(ii) for the benefit of the Class A-2 Notes, to the Class A-2 Noteholders, (iii)
for the benefit of the Class A-3 Notes, to the Class A-3 Noteholders and (iv)
for the benefit of the Class A-4 Notes, to the Class A-4 Noteholders and (b) all
amounts on deposit in the Note Account for the benefit of the Class B Notes
including, without limitation, the Senior Strip and all amounts released or
withdrawn from the Class B Reserve Account pursuant to the Sale and Servicing
Agreement to the Class B Noteholders, or once the Class B Note Balance is
reduced to zero and all interest due and payable on the Class B Notes has been
paid in full, to the Certificateholder. Amounts properly withheld under the Code
by any Person from a payment to any Noteholder of interest and/or principal
shall be considered as having been paid by the Issuer to such Noteholder for all
purposes of this Indenture.

                                       11
<PAGE>

         SECTION 3.2. Maintenance of Office or Agency. The Issuer will maintain
in the Borough of Manhattan, the City of New York, an office or agency where
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. The Issuer will give
prompt written notice to the Indenture Trustee of the location, and of any
change in the location, of any such office or agency. If at any time the Issuer
shall fail to maintain any such office or agency or shall fail to furnish the
Indenture Trustee with the address thereof, such surrenders, notices and demands
may be made or served at the Corporate Trust Office, and the Issuer hereby
appoints the Indenture Trustee as its agent to receive all such surrenders,
notices and demands.

         SECTION 3.3. Money for Payments to be Held in Trust. On or before each
Payment Date and Redemption Date, the Issuer shall deposit or cause to be
deposited in the Note Account from the Collection Account an aggregate sum
sufficient to pay the amounts then becoming due under the Notes, such sum to be
held in trust for the benefit of the Persons entitled thereto and (unless the
Note Paying Agent is the Indenture Trustee) shall promptly notify the Indenture
Trustee of its action or failure so to act.

         The Issuer will cause each Note Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee and the Note Insurer an
instrument in which such Note Paying Agent shall agree with the Indenture
Trustee (and if the Indenture Trustee acts as Note Paying Agent, it hereby so
agrees), subject to the provisions of this Section, that such Note Paying Agent
will:

         (i) hold all sums held by it for the payment of amounts due with
     respect to the Notes in trust for the benefit of the Persons entitled
     thereto until such sums shall be paid to such Persons or otherwise disposed
     of as herein provided and pay such sums to such Persons as herein provided;

         (ii) give the Indenture Trustee notice of any default by the Issuer (or
     any other obligor upon the Notes) of which it has actual knowledge in the
     making of any payment required to be made with respect to the Notes;

         (iii) at any time during the continuance of any such default, upon the
     written request of the Indenture Trustee, forthwith pay to the Indenture
     Trustee all sums so held in trust by such Note Paying Agent;

         (iv) immediately resign as a Note Paying Agent and forthwith pay to the
     Indenture Trustee all sums held by it in trust for the payment of the Notes
     if at any time it ceases to meet the standards required to be met by a Note
     Paying Agent at the time of its appointment; and

         (v) comply with all requirements of the Code with respect to the
     withholding from any payments made by it on any Notes of any applicable
     withholding taxes imposed thereon and with respect to any applicable
     reporting requirements in connection therewith.

                                       12
<PAGE>

         The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order, direct any Note Paying Agent to pay to the Indenture Trustee all sums
held in trust by such Note Paying Agent, such sums to be held by the Indenture
Trustee upon the same trusts as those upon which the sums were held by such Note
Paying Agent; and upon such a payment by any Note Paying Agent to the Indenture
Trustee, such Note Paying Agent shall be released from all further liability
with respect to such money.

         Subject to applicable laws with respect to the escheat of funds, any
money held by the Indenture Trustee or any Note Paying Agent in trust for the
payment of any amount due with respect to any Note and remaining unclaimed for
two years after such amount has become due and payable shall be discharged from
such trust and be paid to the Issuer on Issuer Request with the consent of the
Note Insurer (unless a Note Insurer Default shall have occurred and be
continuing) and shall be deposited by the Indenture Trustee in the Collection
Account; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof (but only to the extent of
the amounts so paid to the Issuer), and all liability of the Indenture Trustee
or such Note Paying Agent with respect to such trust money shall thereupon
cease; provided, however, that if such money or any portion thereof had been
previously deposited by the Note Insurer or the Trust Collateral Agent with the
Indenture Trustee for the payment of principal or interest on the Class A Notes,
to the extent any amounts are owing to the Note Insurer, such amounts shall be
paid promptly to the Note Insurer upon the Indenture Trustee's receipt of a
written request by the Note Insurer to such effect; and provided, further, that
the Indenture Trustee or such Note Paying Agent, before being required to make
any such repayment, shall at the expense of the Issuer cause to be published
once, in a newspaper published in the English language, customarily published on
each Business Day and of general circulation in New York, New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than thirty (30) days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Issuer. The
Indenture Trustee shall also adopt and employ, at the expense of the Issuer, any
other reasonable means of notification of such repayment (including, but not
limited to, mailing notice of such repayment to Holders whose Notes have been
called but have not been surrendered for redemption or whose right to or
interest in moneys due and payable but not claimed is determinable from the
records of the Indenture Trustee or of any Note Paying Agent, at the last
address of record for each such Holder).

         SECTION 3.4. Existence. Except as otherwise permitted by the provisions
of Section 3.10, the Issuer will keep in full effect its existence, rights and
franchises as a business trust under the laws of the State of Delaware (unless
it becomes, or any successor Issuer hereunder is or becomes, organized under the
laws of any other state or of the United States of America, in which case the
Issuer will keep in full effect its existence, rights and franchises under the
laws of such other jurisdiction) and will obtain and preserve its qualification
to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the
Notes, the Pledged Property and each other instrument or agreement included in
the Trust Assets.

         SECTION 3.5. Protection of Pledged Property. The Issuer intends the
security interest Granted pursuant to this Indenture in favor of the Indenture
Trustee for the benefit of the Note Insurer and the Noteholders to be prior to
all other liens in respect of the Trust Assets, and

                                       13
<PAGE>

the Issuer shall take all actions necessary to obtain and maintain, in favor of
the Indenture Trustee, for the benefit of the Note Insurer and the Noteholders,
a first lien on and a first priority, perfected security interest in the Pledged
Property. The Issuer will from time to time prepare (or shall cause to be
prepared), execute and deliver all such supplements and amendments hereto and
all such financing statements, continuation statements, instruments of further
assurance and other instruments, and will take such other action necessary or
advisable to:

         (i) provide further assurance with respect to the Grant and/or Grant
     more effectively all or any portion of the Pledged Property or maintain the
     Pledged Property free and clear of all prior liens;

         (ii) maintain or preserve the lien and security interest (and the
     priority thereof) in favor of the Indenture Trustee for the benefit of the
     Noteholders and the Note Insurer created by this Indenture or carry out
     more effectively the purposes hereof;

         (iii) perfect, publish notice of or protect the validity of any Grant
     made or to be made by this Indenture;

         (iv) enforce any of the Pledged Property;

         (v) preserve and defend title to the Pledged Property and the rights of
     the Indenture Trustee in such Pledged Property against the claims of all
     persons and parties; and

         (vi) pay all taxes or assessments levied or assessed upon the Pledged
     Property when due.

The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required by the Indenture Trustee pursuant to this Section.

         SECTION 3.6. Opinions as to Pledged Property.

         (a) On the Closing Date, the Issuer shall furnish to the Indenture
Trustee and the Note Insurer an Opinion of Counsel either stating that, in the
opinion of such counsel, such action has been taken with respect to the
recording and filing of this Indenture, any indentures supplemental hereto, and
any other requisite documents, and with respect to the execution and filing of
any financing statements and continuation statements, as are necessary to
perfect and make effective the first priority lien and security interest in
favor of the Indenture Trustee, for the benefit of the Noteholders and the Note
Insurer, created by this Indenture and reciting the details of such action, or
stating that, in the opinion of such counsel, no such action is necessary to
make such lien and security interest effective.

         (b) Within 120 days after the beginning of each calendar year,
beginning with the calendar year beginning January 1, 2003, the Issuer shall
furnish to the Indenture Trustee and the Note Insurer an Opinion of Counsel
either stating that, in the opinion of such counsel, such action has been taken
with respect to the recording, filing, re-recording and refiling of this
Indenture, any indentures supplemental hereto and any other requisite documents
and with respect to the execution and filing of any financing statements and
continuation statements as are

                                       14
<PAGE>

necessary to maintain the lien and security interest created by this Indenture
and reciting the details of such action or stating that in the opinion of such
counsel no such action is necessary to maintain such lien and security interest.
Such Opinion of Counsel shall also describe the recording, filing, re-recording
and refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until January 30 in
the following calendar year.

         SECTION 3.7. Performance of Obligations; Servicing of Receivables. (a)
The Issuer will not take any action and will use its best efforts not to permit
any action to be taken by others that would release any Person from any of such
Person's material covenants or obligations under any instrument or agreement
included in the Pledged Property or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
ordered by any bankruptcy or other court or as expressly provided in this
Indenture, the Basic Documents or such other instrument or agreement.

         (b) The Issuer may contract with other Persons acceptable to the Note
Insurer (so long as no Note Insurer Default shall have occurred and be
continuing) to assist it in performing its duties under this Indenture, and any
performance of such duties by a Person identified to the Indenture Trustee and
the Note Insurer in an Officer's Certificate of the Issuer shall be deemed to be
action taken by the Issuer. Initially, the Issuer has contracted with the
Servicer to assist the Issuer in performing its duties under this Indenture.

         (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Basic Documents and
in the instruments and agreements included in the Pledged Property, including,
but not limited to, preparing (or causing to prepared) and filing (or causing to
be filed) all UCC financing statements and continuation statements required to
be filed by the terms of this Indenture and the Sale and Servicing Agreement in
accordance with and within the time periods provided for herein and therein.
Except as otherwise expressly provided therein, the Issuer shall not waive,
amend, modify, supplement or terminate any Basic Document or any provision
thereof without the consent of the Indenture Trustee or the Note Insurer (or if
a Note Insurer Default has occurred and is continuing, the Majorityholders).

         (d) If a responsible officer of the Owner Trustee shall have actual
knowledge of the occurrence of a Servicer Termination Event under the Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee, the
Note Insurer and the Rating Agencies thereof in accordance with Section 11.4,
and shall specify in such notice the action, if any, the Issuer is taking in
respect of such default. If a Servicer Termination Event shall arise from the
failure of the Servicer to perform any of its duties or obligations under the
Sale and Servicing Agreement with respect to the Receivables, the Issuer shall
take all reasonable steps available to it to remedy such failure.

         (e) The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Transferor of their respective duties under
the Basic Documents (x) without the prior consent of the Note Insurer (unless a
Note Insurer Default shall have occurred and be continuing) or (y) if the effect
thereof would adversely affect the Holders of the Notes.

                                       15
<PAGE>

         SECTION 3.8. Negative Covenants. So long as any Notes are outstanding,
the Issuer shall not:

         (i) except as expressly permitted by this Indenture or the Basic
     Documents, sell, transfer, exchange or otherwise dispose of any of the
     properties or assets of the Issuer, including those included in the Pledged
     Property, unless directed to do so by the Controlling Party;

         (ii) claim any credit on, or make any deduction from the principal or
     interest payable in respect of, the Notes (other than amounts properly
     withheld from such payments under the Code) or assert any claim against any
     present or former Noteholder by reason of the payment of the taxes levied
     or assessed upon any part of the Pledged Property;

         (iii) (A) permit the validity or effectiveness of this Indenture to be
     impaired, or permit the lien in favor of the Indenture Trustee created by
     this Indenture to be amended, hypothecated, subordinated, terminated or
     discharged, or permit any Person to be released from any covenants or
     obligations with respect to the Notes under this Indenture except as may be
     expressly permitted hereby, (B) permit any lien, charge, excise, claim,
     security interest, mortgage or other encumbrance (other than the lien of
     this Indenture) to be created on or extend to or otherwise arise upon or
     burden the Pledged Property or any part thereof or any interest therein or
     the proceeds thereof (other than tax liens, mechanics' liens and other
     liens that arise by operation of law, in each case on a Financed Vehicle
     and arising solely as a result of an action or omission of the related
     Obligor), (C) permit the lien of this Indenture not to constitute a valid
     first priority (other than with respect to any such tax, mechanics' or
     other lien) security interest in the Pledged Property or (D) amend, modify
     or fail to comply with the provisions of the Basic Documents without the
     prior written consent of the Controlling Party;

         (iv) engage in any business or activity other than as permitted by the
     Trust Agreement;

         (v) incur or assume any indebtedness or guarantee any indebtedness of
     any Person, except for such indebtedness incurred pursuant to Section 3.10;
     or

         (vi) dissolve or liquidate in whole or in part or merge or consolidate
     with any other Person, other than in compliance with Section 3.10.

         SECTION 3.9. Annual Statement as to Compliance. The Issuer will deliver
to the Indenture Trustee and the Note Insurer, within 120 days after the end of
each fiscal year of the Issuer (commencing with the fiscal year ended December
31, 2002), and otherwise in compliance with the requirements of Section
314(a)(4) of the TIA, an Officer's Certificate stating, as to the Authorized
Officer signing such Officer's Certificate, that:

         (i) a review of the activities of the Issuer during such year and of
     performance under this Indenture has been made under such Authorized
     Officer's supervision; and

                                       16
<PAGE>

         (ii) to the best of such Authorized Officer's knowledge, based on such
     review, the Issuer has complied with all conditions and covenants under
     this Indenture throughout such year, or, if there has been a default in the
     compliance of any such condition or covenant, specifying each such default
     known to such Authorized Officer and the nature and status thereof.

         SECTION 3.10. Issuer May Consolidate, Etc. Only on Certain Terms. (a)
The Issuer shall not consolidate or merge with or into any other Person, unless:

         (i) the Person (if other than the Issuer) formed by or surviving such
     consolidation or merger shall be a Person organized and existing under the
     laws of the United States of America or any state and shall expressly
     assume, by an indenture supplemental hereto, executed and delivered to the
     Indenture Trustee, in form satisfactory to the Indenture Trustee and the
     Note Insurer (so long as no Note Insurer Default shall have occurred and be
     continuing), the due and punctual payment of the principal of and interest
     on all Notes and the performance or observance of every agreement and
     covenant of this Indenture on the part of the Issuer to be performed or
     observed, all as provided herein;

         (ii) immediately after giving effect to such transaction, no Default or
     Event of Default shall have occurred and be continuing;

         (iii) the Rating Agency Condition shall have been satisfied with
     respect to such transaction;

         (iv) the Issuer shall have received an Opinion of Counsel (and shall
     have delivered copies thereof to the Indenture Trustee and the Note Insurer
     (so long as no Note Insurer Default shall have occurred and be continuing))
     to the effect that such transaction will not have any material adverse tax
     consequence to the Trust, the Note Insurer, any Noteholder or the
     Certificateholder;

         (v) any action as is necessary to maintain the lien and security
     interest created by this Indenture shall have been taken;

         (vi) the Issuer shall have delivered to the Indenture Trustee and the
     Note Insurer an Officer's Certificate and an Opinion of Counsel each
     stating that such consolidation or merger and such supplemental indenture
     comply with this Article III and that all conditions precedent herein
     provided for relating to such transaction have been complied with
     (including any filing required by the Exchange Act); and

         (vii) so long as no Note Insurer Default shall have occurred and be
     continuing, the Issuer shall have given the Note Insurer written notice of
     such conveyance or transfer at least twenty (20) Business Days prior to the
     consummation of such action and shall have received the prior written
     approval of the Note Insurer of such conveyance or transfer and the Issuer
     or the Person (if other than the Issuer) formed by or surviving such
     conveyance or transfer has a net worth, immediately after such conveyance
     or transfer, that is (a) greater than zero and (b) not less than the net
     worth of the Issuer immediately prior to giving effect to such conveyance
     or transfer.

                                       17
<PAGE>

         (b) The Issuer shall not convey or transfer all or substantially all of
its properties or assets, including those included in the Pledged Property, to
any Person, unless:

         (i) the Person that acquires by conveyance or transfer the properties
     and assets of the Issuer the conveyance or transfer of which is hereby
     restricted shall (A) be a United States citizen or a Person organized and
     existing under the laws of the United States of America or any state, (B)
     expressly assume, by an indenture supplemental hereto, executed and
     delivered to the Indenture Trustee, in form satisfactory to the Indenture
     Trustee, and the Note Insurer (so long as no Note Insurer Default shall
     have occurred and be continuing), the due and punctual payment of the
     principal of and interest on all Notes and the performance or observance of
     every agreement and covenant of this Indenture and each of the Basic
     Documents on the part of the Issuer to be performed or observed, all as
     provided herein, (C) expressly agree by means of such supplemental
     indenture that all right, title and interest so conveyed or transferred
     shall be subject and subordinate to the rights of Holders of the Notes, and
     (D) unless otherwise provided in such supplemental indenture, expressly
     agree to indemnify, defend and hold harmless the Issuer against and from
     any loss, liability or expense arising under or related to this Indenture
     and the Notes;

         (ii) immediately after giving effect to such transaction, no Default or
     Event of Default shall have occurred and be continuing;

         (iii) the Rating Agency Condition shall have been satisfied with
     respect to such transaction;

         (iv) the Issuer shall have received an Opinion of Counsel (and shall
     have delivered copies thereof to the Indenture Trustee and the Note Insurer
     (so long as no Note Insurer Default shall have occurred and be continuing))
     to the effect that such transaction will not have any material adverse tax
     consequence to the Trust, the Note Insurer, any Noteholder or the
     Certificateholder;

         (v) any action as is necessary to maintain the lien and security
     interest created by this Indenture shall have been taken;

         (vi) the Issuer shall have delivered to the Indenture Trustee and the
     Note Insurer an Officers' Certificate and an Opinion of Counsel each
     stating that such conveyance or transfer and such supplemental indenture
     comply with this Article III and that all conditions precedent herein
     provided for relating to such transaction have been complied with; and

         (vii) so long as no Note Insurer Default shall have occurred and be
     continuing, the Issuer shall have given the Note Insurer written notice of
     such conveyance or transfer at least twenty (20) Business Days prior to the
     consummation of such action and shall have received the prior written
     approval of the Note Insurer of such consolidation or merger and the Issuer
     or the Person (if other than the Issuer) formed by or surviving such
     consolidation or merger has a net worth, immediately after such
     consolidation or merger, that is (a) greater than zero and (b) not less
     than the net worth of the Issuer immediately prior to giving effect to such
     consolidation or merger.

                                       18
<PAGE>

         SECTION 3.11. Successor or Transferee. (a) Upon any consolidation or
merger of the Issuer in accordance with Section 3.10(a), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.10 (b), Long Beach Acceptance Auto Receivables
Trust 2002-A will be released from every covenant and agreement of this
Indenture to be observed or performed on the part of the Issuer with respect to
the Notes immediately upon the delivery of written notice to the Indenture
Trustee stating that Long Beach Acceptance Auto Receivables Trust 2002-A is to
be so released.

         SECTION 3.12. No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing the
Receivables in the manner contemplated by this Indenture and the Basic Documents
and activities incidental thereto. After the Closing Date, the Issuer shall not
fund the acquisition of any additional Receivables.

         SECTION 3.13. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes, (ii) obligations owing from time to time
to the Note Insurer under the Insurance Agreement and (iii) any other
Indebtedness permitted by or arising under the Basic Documents. The proceeds of
the Notes shall be used exclusively to fund the Issuer's acquisition of the
Receivables and the other assets specified in the Sale and Servicing Agreement,
to fund the Spread Account and the Class B Reserve Account and to pay the
Issuer's organizational, transactional and start-up expenses.

         SECTION 3.14. Servicer's Obligations. The Issuer shall cause the
Servicer to comply with Sections 4.9, 4.10, 4.11 and 5.7 of the Sale and
Servicing Agreement.

         SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities. Except
as contemplated by the Sale and Servicing Agreement or this Indenture, the
Issuer shall not make any loan or advance or credit to, or guarantee (directly
or indirectly or by an instrument having the effect of assuring another's
payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

         SECTION 3.16. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

         SECTION 3.17. Compliance with Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any
Basic Document.

                                       19
<PAGE>

         SECTION 3.18. Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any payment (by reduction of capital or
otherwise), whether in cash, property, securities or a combination thereof, to
the Owner Trustee or any owner of a beneficial interest in the Issuer or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise
acquire for value any such ownership or equity interest or security or (iii) set
aside or otherwise segregate any amounts for any such purpose; provided,
however, that the Issuer may make, or cause to be made, payments to the
Servicer, the Owner Trustee, the Trust Collateral Agent, the Back-up Servicer,
the Custodian, the Indenture Trustee, the Note Insurer, the Noteholders and the
Certificateholder as permitted by, and to the extent funds are available for
such purpose under, the Sale and Servicing Agreement, the Spread Account
Agreement or Trust Agreement. The Issuer will not, directly or indirectly, make
payments to or payments from the Collection Account except in accordance with
this Indenture and the Basic Documents.

         SECTION 3.19. Notice of Events of Default. Upon a responsible officer
of the Owner Trustee having actual knowledge or receipt of written notice
thereof, the Issuer agrees to give the Indenture Trustee, the Trust Collateral
Agent, the Note Insurer and the Rating Agencies prompt written notice of each
Event of Default hereunder and each default on the part of the Servicer or the
Transferor of its obligations under the Sale and Servicing Agreement.

         SECTION 3.20. Further Instruments and Acts. Upon request of the
Indenture Trustee or the Note Insurer, the Issuer will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

         SECTION 3.21. Income Tax Characterization. For purposes of federal
income, state and local income and franchise and any other income taxes, the
Issuer will treat, and each Noteholder by its acceptance of a Note will be
deemed to have agreed to treat the Notes as indebtedness and hereby instructs
the Indenture Trustee to treat the Notes as indebtedness for all applicable tax
reporting purposes.

                                   ARTICLE IV

                           Satisfaction and Discharge
                           --------------------------

         SECTION 4.1. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8,
3.10, 3.12, 3.13, 3.20 and 3.21, (v) the rights, obligations and immunities of
the Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.7 and the obligations of the Indenture Trustee under Section
4.2) and (vi) the rights of Noteholders as beneficiaries hereof with respect to
the property so deposited with the Indenture Trustee payable to all or any of
them, and the Indenture Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

               (A) either

                                       20
<PAGE>

               (1) all Notes theretofore authenticated and delivered (other than
         (i) Notes that have been destroyed, lost or stolen and that have been
         replaced or paid as provided in Section 2.5 and (ii) Notes for whose
         payment money has theretofore been deposited in trust or segregated and
         held in trust by the Issuer and thereafter repaid to the Issuer or
         discharged from such trust, as provided in Section 3.3) have been
         delivered to the Indenture Trustee for cancellation and the Policy has
         expired and been returned to the Note Insurer for cancellation; or

               (2) all Notes not theretofore delivered to the Indenture Trustee
         for cancellation

               (i) have become due and payable,

               (ii) will become due and payable on the Class A-1 Final Scheduled
         Payment Date, the Class A-2 Final Scheduled Payment Date, the Class A-3
         Final Scheduled Payment Date, the Class A-4 Final Scheduled Payment
         Date or the Class B Final Scheduled Payment Date, as applicable, within
         one year, or

               (iii) are to be called for redemption within one year under
         arrangements satisfactory to the Indenture Trustee for the giving of
         notice of redemption by the Indenture Trustee in the name, and at the
         expense, of the Issuer,

         and the Issuer, in the case of (i), (ii) or (iii) above, has
         irrevocably deposited or caused to be irrevocably deposited with the
         Indenture Trustee cash or direct obligations of or obligations
         guaranteed by the United States of America (which will mature prior to
         the date such amounts are payable), in trust for such purpose, in an
         amount sufficient to pay and discharge the entire indebtedness on such
         Notes not theretofore delivered to the Indenture Trustee for
         cancellation when due on the Class A-1 Final Scheduled Payment Date,
         Class A-2 Final Scheduled Payment Date, Class A-3 Final Scheduled
         Payment Date, Class A-4 Final Scheduled Payment Date or Class B Final
         Scheduled Payment Date, as applicable or Redemption Date (if Notes
         shall have been called for redemption pursuant to Section 10.1(a)), as
         the case may be;

               (B) the Issuer has paid or caused to be paid all its obligations
         to the Note Insurer, the Noteholders and the Indenture Trustee; and

               (C) the Issuer has delivered to the Indenture Trustee and the
         Note Insurer an Officer's Certificate and an Opinion of Counsel and, if
         required by the TIA, an Independent Certificate from a firm of
         certified public accountants, each meeting the applicable requirements
         of Section 11.1(a) and each stating that all conditions precedent
         herein provided for relating to the satisfaction and discharge of this
         Indenture have been complied with.

         SECTION 4.2. Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Section 4.1 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Note Paying Agent, as
the Indenture Trustee may determine, to the Holders of the particular Notes for
the payment or redemption of which such moneys have been deposited with

                                       21
<PAGE>

the Indenture Trustee, of all sums due and to become due thereon for principal
and interest; but such moneys need not be segregated from other funds except to
the extent required herein or in the Sale and Servicing Agreement or required by
law.

         SECTION 4.3. Repayment of Moneys Held by Note Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to
the Notes, all moneys then held by any Note Paying Agent other than the
Indenture Trustee under the provisions of this Indenture with respect to such
Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be
held and applied according to Section 3.3 and thereupon such Note Paying Agent
shall be released from all further liability with respect to such moneys.

                                    ARTICLE V

                                    Remedies
                                    --------

         SECTION 5.1. Events of Default. "Event of Default", wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

         (i) default in the payment of any Note Interest when the same becomes
     due and payable, and such default shall continue for a period of five (5)
     days (solely for purposes of this clause, a payment on the Class A Notes
     funded by the Note Insurer or the Collateral Agent pursuant to the Spread
     Account Agreement shall be deemed to be a payment made by the Issuer and a
     payment on the Class B Notes funded by amounts drawn or released from the
     Class B Reserve Account shall be deemed to be a payment by the Issuer); or

         (ii) default in the payment of the Class A Principal Payment Amount or
     the Class B Principal Payment Amount, as applicable, on the Class A-1 Final
     Scheduled Payment Date, the Class A-2 Final Scheduled Payment Date, the
     Class A-3 Final Scheduled Payment Date, the Class A-4 Final Scheduled
     Payment Date or the Class B Final Scheduled Payment Date, as the case may
     be (solely for purposes of this clause, a payment on the Class A Notes
     funded by the Note Insurer or the Collateral Agent pursuant to the Spread
     Account Agreement, shall be deemed to be a payment made by the Issuer and a
     payment on the Class B Notes funded by amounts drawn or released from the
     Class B Reserve Account shall be deemed to be a payment by the Issuer); or

         (iii) so long as a Note Insurer Default shall not have occurred and be
     continuing, an Insurance Agreement Indenture Cross Default shall have
     occurred; provided, however, that the occurrence of an Insurance Agreement
     Indenture Cross Default may not form the basis of an Event of Default
     unless the Note Insurer shall, upon prior written notice to the Rating
     Agencies, have delivered to the Issuer and the Indenture Trustee and not
     rescinded a written notice specifying that such Insurance Agreement
     Indenture Cross Default constitutes an Event of Default under this
     Indenture; or

                                       22
<PAGE>

         (iv) so long as a Note Insurer Default shall have occurred and be
     continuing, a default in the observance or performance of any covenant or
     agreement of the Issuer made in this Indenture (other than a covenant or
     agreement, a default in the observance or performance of which is elsewhere
     in this Section specifically dealt with), which default shall continue
     unremedied for a period of thirty (30) days after the date on which written
     notice of such failure requiring the same to be remedied, shall have been
     given (1) to the Issuer by the Indenture Trustee, or (2) to the Issuer and
     the Indenture Trustee by the Noteholders evidencing not less than 25% of
     the Class A Note Balance or after the Policy Expiration Date, by the Class
     B Noteholders, evidencing not less than 25% of the Class B Note Balance; or

         (v) so long as a Note Insurer Default shall have occurred and be
     continuing, the filing of a decree or order for relief by a court having
     jurisdiction in the premises in respect of the Issuer or any substantial
     part of the Pledged Property in an involuntary case under any applicable
     federal or state bankruptcy, insolvency or other similar law now or
     hereafter in effect, or appointing a receiver, liquidator, assignee,
     custodian, trustee, sequestrator or similar official of the Issuer or for
     any substantial part of the Pledged Property, or ordering the winding-up or
     liquidation of the Issuer's affairs, and such decree or order shall remain
     unstayed and in effect for a period of sixty (60) consecutive days; or

         (vi) so long as a Note Insurer Default shall have occurred and be
     continuing, the commencement by the Issuer of a voluntary case under any
     applicable federal or state bankruptcy, insolvency or other similar law now
     or hereafter in effect, or the consent by the Issuer to the entry of an
     order for relief in an involuntary case under any such law, or the consent
     by the Issuer to the appointment or taking possession by a receiver,
     liquidator, assignee, custodian, trustee, sequestrator or similar official
     of the Issuer or for any substantial part of the Pledged Property, or the
     making by the Issuer of any general assignment for the benefit of
     creditors, or the failure by the Issuer generally to pay its debts as such
     debts become due, or the taking of action by the Issuer in furtherance of
     any of the foregoing.

         SECTION 5.2. Rights Upon Event of Default. (a) If a Note Insurer
Default shall not have occurred and be continuing and an Event of Default shall
have occurred and be continuing, the Notes shall become immediately due and
payable at par, together with accrued interest thereon. If an Event of Default
shall have occurred and be continuing, the Controlling Party may exercise any of
the remedies specified in Section 5.4(a). In the event of any acceleration of
any Class A Notes by operation of this Section 5.2, the Indenture Trustee shall
continue to be entitled to make claims under the Policy pursuant to the Sale and
Servicing Agreement for Scheduled Payments on the Class A Notes. Payments under
the Policy following acceleration of any Class A Notes shall be applied by the
Indenture Trustee:

         FIRST: to Class A Noteholders for amounts due and unpaid on the Class A
     Notes for interest, ratably, without preference or priority of any kind,
     according to the amounts due and payable on the Class A Notes for interest;
     and

         SECOND: to Class A Noteholders for amounts due and unpaid on the Class
     A Notes for principal, ratably, without preference or priority of any kind,
     according to the amounts due and payable on the Class A Notes for
     principal.

                                       23
<PAGE>

         (b) In the event any Class A Notes are accelerated due to an Event of
Default, the Note Insurer shall have the right (in addition to its obligation to
pay Scheduled Payments on the Class A Notes in accordance with the Policy), but
not the obligation, to make payments under the Policy or otherwise of interest
and principal due on such Class A Notes, in whole or in part, on any date or
dates following such acceleration as the Note Insurer, in its sole discretion,
shall elect.

         (c) If a Note Insurer Default shall have occurred and be continuing and
an Event of Default shall have occurred and be continuing, the Indenture Trustee
in its discretion may, or if so requested in writing by the Majorityholders
shall, declare by written notice to the Issuer that the Notes become, whereupon
they shall become, immediately due and payable at par, in accordance with the
priorities set forth in Section 5.6, together with accrued interest thereon.

         (d) If a Note Insurer Default shall have occurred and be continuing,
then at any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V; provided,
the Majorityholders, by written notice to the Issuer and the Indenture Trustee,
may rescind and annul such declaration and its consequences if:

         (i) the Issuer has paid or deposited with the Indenture Trustee a sum
     sufficient to pay:

                    (A) all payments of principal of and interest on all Notes
               and all other amounts that would then be due hereunder or upon
               such Notes if the Event of Default giving rise to such
               acceleration had not occurred; and

                    (B) all sums paid or advanced by the Indenture Trustee
               hereunder and the reasonable compensation, expenses,
               disbursements and advances of the Indenture Trustee and its
               agents and counsel; and

         (ii) all Events of Default, other than the nonpayment of the principal
     of the Notes that has become due solely by such acceleration, have been
     cured or waived as provided in Section 5.13.

         No such rescission shall affect any subsequent default or impair any
right consequent thereto.

         SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) default is made in the
payment of any interest on any Note when the same becomes due and payable, and
such default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note when
the same becomes due and payable, the Issuer will pay to the Indenture Trustee,
for the benefit of the Holders of the Notes, the whole amount then due and
payable on such Notes for principal and interest, with interest upon the overdue
principal, and, to the extent payment at such rate of interest shall be legally
enforceable, upon overdue installments of interest, at the applicable Note Rate
and in addition thereto such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Indenture Trustee and its agents and
counsel.

                                       24
<PAGE>

         (b) Each of the Indenture Trustee and the Note Insurer hereby
irrevocably and unconditionally appoints the Controlling Party as the true and
lawful attorney-in-fact of the Indenture Trustee or the Note Insurer, as
applicable, for so long as neither the Indenture Trustee nor the Note Insurer is
the Controlling Party, with full power of substitution, to execute, acknowledge
and deliver any notice, document, certificate, paper, pleading or instrument and
to do in the name of the Controlling Party as well as in the name, place and
stead of the Indenture Trustee and the Note Insurer such acts, things and deeds
for or on behalf of and in the name of either the Indenture Trustee or the Note
Insurer under this Indenture (including specifically under Section 5.4) and
under the Basic Documents which either the Indenture Trustee and the Note
Insurer could or might do or which may be necessary, desirable or convenient in
such Controlling Party's sole discretion to effect the purposes contemplated
hereunder and under the Basic Documents and, without limitation, following the
occurrence of an Event of Default, exercise full right, power and authority to
take, or defer from taking, any and all acts with respect to the administration,
maintenance or disposition of the Pledged Property.

         (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may in its discretion but with the consent of the Note Insurer, so long
as no Note Insurer Default is then continuing, and shall, at the direction of
the Controlling Party, proceed to protect and enforce its rights and the rights
of the Noteholders by such appropriate Proceedings as the Indenture Trustee or
the Controlling Party shall deem effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

         (d) Intentionally Omitted.

         (e) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Assets, proceedings under Title 11 of the United States Code or any
other applicable federal or State bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such proceedings or otherwise:

         (i) to file and prove a claim or claims for the whole amount of
     principal and interest owing and unpaid in respect of the Notes and to file
     such other papers or documents as may be necessary or advisable in order to
     have the claims of the Indenture Trustee (including any claim for
     reasonable compensation to the Indenture Trustee and each predecessor
     Indenture Trustee, and their respective agents, attorneys and counsel, and
     for reimbursement of all expenses and liabilities incurred, and all
     advances made, by the Indenture Trustee and each predecessor Indenture
     Trustee, except as a result of negligence, bad faith or willful misconduct)
     and of the Noteholders allowed in such proceedings;

                                       25
<PAGE>

         (ii) unless prohibited by applicable law and regulations, to vote on
     behalf of the Noteholders in any election of a trustee, a standby trustee
     or person performing similar functions in any such proceedings;

         (iii) to collect and receive any moneys or other property payable or
     deliverable on any such claims and to distribute all amounts received with
     respect to the claims of the Noteholders and of the Indenture Trustee on
     their behalf; and

         (iv) to file such proofs of claim and other papers or documents as may
     be necessary or advisable in order to have the claims of the Indenture
     Trustee or the Noteholders allowed in any judicial proceedings relative to
     the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence or bad faith.

         (f) Nothing herein contained shall be deemed to authorize the Indenture
     Trustee to authorize or consent to or vote for or accept or adopt on behalf
     of any Noteholder any plan of reorganization, arrangement, adjustment or
     composition affecting the Notes or the rights of any Holder thereof or to
     authorize the Indenture Trustee to vote in respect of the claim of any
     Noteholder in any such proceeding except, as aforesaid, to vote for the
     election of a trustee in bankruptcy or similar person.

         (g) All rights of action and of asserting claims under this Indenture,
     the Spread Account Agreement, any other Basic Document or under any of the
     Notes, may be enforced by the Indenture Trustee without the possession of
     any of the Notes or the production thereof in any trial or other
     proceedings relative thereto, and any such action or proceedings instituted
     by the Indenture Trustee shall be brought in its own name as trustee of an
     express trust, and any recovery of judgment, subject to the payment of the
     expenses, disbursements and compensation of the Indenture Trustee, each
     predecessor Indenture Trustee and their respective agents and attorneys,
     shall be for the ratable benefit of the Holders of the Notes.

         (h) In any proceedings brought by the Indenture Trustee (and also any
     proceedings involving the interpretation of any provision of this
     Indenture, the Spread Account Agreement or any other Basic Document), the
     Indenture Trustee shall be held to represent all the Holders of the Notes,
     and it shall not be necessary to make any Noteholder a party to any such
     proceedings.

         SECTION 5.4. Remedies. If an Event of Default shall have occurred and
be continuing, the Controlling Party may do one or more of the following
(subject to Section 5.5):

         (i) institute Proceedings in its own name and as trustee of an express
     trust for the collection of all amounts then payable on the Notes or under
     this Indenture with

                                       26
<PAGE>

respect thereto, whether by declaration or otherwise, enforce any judgment
obtained, and collect from the Issuer and any other obligor upon such Notes
moneys adjudged due;

         (ii) institute Proceedings from time to time for the complete or
     partial foreclosure of this Indenture with respect to the Pledged Property;

         (iii) exercise any remedies of a secured party under the UCC and take
     any other appropriate action to protect and enforce the rights and remedies
     of the Indenture Trustee, the Note Insurer and the Holders of the Notes;
     and

         (iv) direct the Trust Collateral Agent to sell the Pledged Property or
     any portion thereof or rights or interest therein, at one or more public or
     private sales called and conducted in any manner permitted by law;
     provided, however, that:

               (A) if the Note Insurer is the Controlling Party, the Note
         Insurer may not sell or otherwise liquidate the Pledged Property
         following an Insurance Agreement Indenture Cross Default unless:

                    (I) such Insurance Agreement Indenture Cross Default is
               pursuant to Section 5.01(a), (e), (n) or (o) of the Insurance
               Agreement; or

                    (II) the proceeds of such sale or liquidation are sufficient
               to discharge in full all amounts then due and unpaid upon such
               Notes for principal and interest; or

               (B) if the Indenture Trustee is the Controlling Party, the
         Indenture Trustee may not, nor direct the Trust Collateral Agent to,
         sell or otherwise liquidate the Pledged Property following an Event of
         Default unless:

                    (I) such Event of Default is of the type described in
               Section 5.01(i) or (ii), or

                    (II) either

                         (x) 100% of the Noteholders consent thereto,

                         (y) the proceeds of such sale or liquidation are
                    sufficient to discharge in full all amounts then due and
                    unpaid upon such Notes for principal and interest, or

                         (z) the Indenture Trustee determines that the Trust
                    Assets will not continue to provide sufficient funds for the
                    payment of principal of and interest on the Notes as they
                    would have become due if the Notes had not been declared due
                    and payable, and the Indenture Trustee provides prior
                    written notice to the Rating Agencies and obtains the
                    consent of Holders of 66-2/3% of the outstanding Class A
                    Note Balance.

                                       27
<PAGE>

         In determining such sufficiency or insufficiency with respect to clause
(y) and (z), the Indenture Trustee may, but need not, obtain and conclusively
rely upon an opinion of an Independent investment banking or accounting firm of
national reputation, which opinion shall not be at the expense of the Indenture
Trustee, as to the feasibility of such proposed action and as to the sufficiency
of the Pledged Property for such purpose.

         SECTION 5.5. Optional Preservation of the Pledged Property. If the
Indenture Trustee is the Controlling Party and if the Notes have been declared
to be due and payable under Section 5.2 following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the
Indenture Trustee may, but need not, elect to direct the Trust Collateral Agent
to maintain possession of the Pledged Property. It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for the
payment of principal of and interest on the Notes, and the Indenture Trustee
shall take such desire into account when determining whether or not to direct
the Trust Collateral Agent to maintain possession of the Pledged Property. In
determining whether to direct the Trust Collateral Agent to maintain possession
of the Pledged Property, the Indenture Trustee may, but need not, obtain and
conclusively rely upon an opinion of an Independent investment banking or
accounting firm of national reputation, which opinion shall not be at the
expense of the Indenture Trustee, as to the feasibility of such proposed action
and as to the sufficiency of the Pledged Property for such purpose.

         SECTION 5.6. Priorities.

         (a) If the Indenture Trustee collects any money or property pursuant to
this Article V (excluding any payments made under the Policy), or if the Trust
Collateral Agent delivers any money or property in respect of liquidation of the
Pledged Property to the Indenture Trustee pursuant to Section 5.4(a)(iv), such
money or property, as applicable, shall be applied by the Indenture Trustee on
the related Payment Date in the following order of priority:

         First: amounts due and owing and required to be distributed to the
     Servicer (provided there is no Servicer Termination Event), the Indenture
     Trustee, the Custodian, the Back Up Servicer and, with respect to the
     Senior Strip, to the Class B Noteholders per application pursuant to clause
     Sixth, with any remainder to be deposited in the Class B Reserve Account
     or, if the Class B Note Balance has been reduced to zero, to LBAC, as the
     case may be, respectively, pursuant to priorities (i) and (ii) of Section
     5.6(c) of the Sale and Servicing Agreement and not previously distributed,
     in the order of such priorities and without preference or priority of any
     kind within such priorities;

         Second: to Class A-1 Noteholders, the Class A-2 Noteholders, the Class
     A-3 Noteholders and the Class A-4 Noteholders for amounts due and unpaid on
     the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class
     A-4 Notes, for interest, ratably, without preference or priority of any
     kind, according to the amounts due and payable on the Class A-1 Notes, the
     Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes for interest;

         Third: to Class A-1 Noteholders, the Class A-2 Noteholders, the Class
     A-3 Noteholders and the Class A-4 Noteholders for amounts due and unpaid on
     the Class A-1, Class A-2, Class A-3 and Class A-4 Notes for principal, pro
     rata (based on the then

                                       28
<PAGE>

     outstanding Class A-1 Note Balance, Class A-2 Note Balance, Class A-3 Note
     Balance and Class A-4 Note Balance);

         Fourth: amounts due and owing and required to be distributed to the
     Note Insurer pursuant to priority (v) of Section 5.6(c) of the Sale and
     Servicing Agreement and not previously distributed;

         Fifth: to the Trust Collateral Agent, the Back-up Servicer, the
     Indenture Trustee and the Custodian, respectively, amounts due and owing
     and required to be distributed to such entities pursuant to priority (v) of
     Section 5.6(c) of the Sale and Servicing Agreement and not previously
     distributed;

         Sixth: to the Class B Noteholders, the amount of interest due and
     unpaid on the Class B Notes.

         Seventh: to the Collateral Agent, for deposit in the Spread Account,
     any amounts remaining after application pursuant to the priorities above,
     for application in accordance with the provisions of the Spread Account
     Agreement;

         Eighth: to the Class B Reserve Account, any funds released from the
     Spread Account;

         Ninth: to the Class B Noteholders, to the extent amounts are released
     from the Class B Reserve Account, the amount due and unpaid on the Class B
     Notes for principal; and

         Tenth: to the Certificateholder, any remaining amounts released from
     the Class B Reserve Account after application pursuant to the priorities
     above.

         (b) The Indenture Trustee may fix a record date and payment date for
any payment to Noteholders pursuant to this Section 5.6. At least 15 days before
such record date the Issuer shall mail to each Noteholder and the Indenture
Trustee a notice that states the record date, the payment date and the amount to
be paid.

         SECTION 5.7. Limitation of Suits.

         No Class A Noteholder or Class B Noteholder shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

         (i) such Holder has previously given written notice to the Indenture
     Trustee of a continuing Event of Default;

         (ii) the Class A Noteholders evidencing not less than 25% of the Class
     A Note Balance and the Class B Noteholders evidencing not less than 25% of
     the Class B Note Balance have made written request to the Indenture Trustee
     to institute such proceeding in respect of such Event of Default in its own
     name as Indenture Trustee hereunder;

                                       29
<PAGE>

         (iii) such Holder or Holders have offered to the Indenture Trustee
     indemnity reasonably satisfactory to it against the costs, expenses and
     liabilities to be incurred in complying with such request;

         (iv) the Indenture Trustee for sixty (60) days after its receipt of
     such notice, request and offer of indemnity has failed to institute such
     proceedings;

         (v) no direction inconsistent with such written request has been given
     to the Indenture Trustee during such 60-day period by the Majorityholders;
     and

         (vi) a Note Insurer Default shall have occurred and be continuing.

         It is understood and intended that no one or more Noteholders shall
have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Noteholders or to obtain or to seek to obtain priority or preference over
any other Noteholders or to enforce any right under this Indenture, except in
the manner herein provided.

         In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders, each
representing less than a majority of the outstanding Class A Note Balance and
the Class B Note Balance, the Indenture Trustee shall take direction from the
group representing the greater percentage of the outstanding Class A Note
Balance and the Class B Note Balance, and if the groups represent equal
interests, the Indenture Trustee, in its sole discretion may determine what
action, if any, shall be taken, notwithstanding any other provisions of this
Indenture.

         SECTION 5.8. Unconditional Rights of Noteholders To Receive Principal
and Interest. Subject to the provisions of this Indenture, the Holder of any
Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption, on or after the Redemption Date), to the extent that
funds are available for distribution to each such Holder on such due dates, and
the Controlling Party may institute suit for the enforcement of any such
payment, and such right shall not be impaired without the consent of such
Holder.

         SECTION 5.9. Restoration of Rights and Remedies. If the Controlling
Party or any Noteholder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such proceeding had been
instituted.

         SECTION 5.10. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Controlling Party or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or

                                       30
<PAGE>

remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

         SECTION 5.11. Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee, the Controlling Party or any Holder of any Note to
exercise any right or remedy accruing upon any Default or Event of Default shall
impair any such right or remedy or constitute a waiver of any such Default or
Event of Default or an acquiescence therein. Every right and remedy given by
this Article V or by law to the Indenture Trustee, the Note Insurer or to the
Noteholders may be exercised from time to time, and as often as may be deemed
expedient, by the Indenture Trustee, the Note Insurer or by the Noteholders, as
the case may be.

         SECTION 5.12. Control by Noteholders. If the Indenture Trustee is the
Controlling Party, Majorityholders shall have the right to direct the time,
method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided that:

         (i) such direction shall not be in conflict with any rule of law or
     with this Indenture;

         (ii) if the conditions set forth in Section 5.5 have been satisfied and
     the Indenture Trustee elects to retain the Pledged Property pursuant to
     such Section, then any direction to the Indenture Trustee by Noteholders
     representing less than 100% of the outstanding Note Balance of the Notes to
     sell or liquidate the Pledged Property shall be of no force and effect; and

         (iii) the Indenture Trustee may take any other action deemed proper by
     the Indenture Trustee that is not inconsistent with such direction;

provided, however, that, subject to Article VI, the Indenture Trustee need not
take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders not consenting to such
action.

         SECTION 5.13. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.4, the Note
Insurer (provided no Note Insurer Default shall have occurred and be continuing)
or the Majorityholders (if a Note Insurer Default shall have occurred and be
continuing), may waive any past Default or Event of Default and its consequences
except a Default (a) in payment of principal of or interest on any of the Notes
or (b) in respect of a covenant or provision hereof which cannot be modified or
amended without the consent of the Holder of each Note. In the case of any such
waiver, the Issuer, the Indenture Trustee and the Holders of the Notes shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereto.

         Upon any such waiver, such Default shall cease to exist and be deemed
to have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereto.

                                       31
<PAGE>

         SECTION 5.14. Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholders, or groups of
Noteholders, in each case holding in the aggregate more than 10% of the
outstanding Note Balance of each of the Class A Notes and the Class B Notes or
(c) any suit instituted by any Noteholder for the enforcement of the payment of
principal of or interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture (or, in the case of redemption, on
or after the Redemption Date).

         SECTION 5.15. Waiver of Stay or Extension Laws. The Issuer covenants
(to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in any manner whatsoever, claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

         SECTION 5.16. Action on Notes. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the
levy of any execution under such judgment upon any portion of the Pledged
Property or upon any of the assets of the Issuer.

         SECTION 5.17. Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee upon the direction of
the Servicer to do so and at the Issuer's expense, the Issuer agrees to take all
such lawful action as the Indenture Trustee may request to compel or secure the
performance and observance by the Transferor and the Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Sale and
Servicing Agreement in accordance with the terms thereof, and to exercise any
and all rights, remedies, powers and privileges lawfully available to the Issuer
under or in connection with the Sale and Servicing Agreement to the extent and
in the manner directed by the Indenture Trustee, including the transmission of
notices of default on the part of the Transferor or the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or
secure performance by the Transferor or the Servicer of each of their
obligations under the Sale and Servicing Agreement.

         (b) If the Indenture Trustee is the Controlling Party and if an Event
of Default has occurred and is continuing, the Indenture Trustee may, and, at
the written direction of the

                                       32
<PAGE>

Holders of 66-2/3% of the outstanding Note Balance of each of the Class A Notes
and the Class B Notes shall, subject to Article VI, exercise all rights,
remedies, powers, privileges and claims of the Issuer against the Transferor or
the Servicer under or in connection with the Sale and Servicing Agreement,
including the right or power to take any action to compel or secure performance
or observance by the Transferor or the Servicer of each of their obligations to
the Issuer thereunder and to give any consent, request, notice, direction,
approval, extension or waiver under the Sale and Servicing Agreement, and any
right of the Issuer to take such action shall be suspended.

         SECTION 5.18. Subrogation.

         The Note Insurer shall, to the extent it makes any payment with respect
to the Class A Notes, become subrogated to the rights of the recipients of such
payments to the extent of such payments. Subject to and conditioned upon any
payment with respect to the Class A Notes by or on behalf of the Note Insurer,
each Class A Noteholder shall be deemed, without further action, to have
directed the Indenture Trustee to assign to the Note Insurer all rights to the
payment of interest or principal with respect to the Class A Notes which are
then due for payment to the extent of all payments made by the Note Insurer and
the Note Insurer may exercise any option, vote, right, power or the like with
respect to the Class A Notes to the extent that it has made payment pursuant to
the Policy. Notwithstanding the foregoing, the order of priority of payments to
be made pursuant to Section 5.6(c) of the Sale and Servicing Agreement shall not
be modified by this clause. To evidence such subrogation, the Note Registrar
shall note the Note Insurer's rights as subrogee upon the register of Class A
Noteholders upon receipt from the Note Insurer of proof of payment by the Note
Insurer of any Class A Interest Payment Amount or Class A Principal Payment
Amount.

         SECTION 5.19. Preference Claims; Direction of Proceedings.

         (a) In the event that the Indenture Trustee has received a certified
copy of an order of the appropriate court that any Scheduled Payment paid on a
Class A Note has been avoided in whole or in part as a preference payment under
applicable bankruptcy law, the Indenture Trustee shall so notify the Note
Insurer, shall comply with the provisions of the Policy to obtain payment by the
Note Insurer of such avoided payment, and shall, at the time it provides notice
to the Note Insurer, notify Holders of the Class A Notes by mail that, in the
event that any Class A Noteholder's payment is so recoverable, such Class A
Noteholder will be entitled to payment pursuant to the terms of the Policy.
Pursuant to the terms of the Policy, the Note Insurer will make such payment on
behalf of the Class A Noteholder to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order (as defined in
the Policy) and not to the Indenture Trustee or any Class A Noteholder directly
(unless such Class A Noteholder has previously paid such payment to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy, in which
case the Note Insurer will make such payment to the Indenture Trustee for
payment, in accordance with the instructions to be provided by the Note Insurer,
to such Class A Noteholder upon proof of such payment reasonably satisfactory to
the Note Insurer).

         (b) Each Notice of Claim shall provide that the Indenture Trustee, on
its behalf and on behalf of the Class A Noteholders, thereby appoints the Note
Insurer as agent and attorney-in-fact for the Indenture Trustee and each Class A
Noteholder in any legal proceeding with respect to the Class A Notes. The
Indenture Trustee shall promptly notify the Note Insurer

                                       33
<PAGE>

of any proceeding or the institution of any action (of which a Responsible
Officer of the Indenture Trustee has actual knowledge) seeking the avoidance as
a preferential transfer under applicable bankruptcy, insolvency, receivership,
rehabilitation or similar law (a "Preference Claim") of any payment made with
respect to the Class A Notes. Each Holder of Class A Notes, by its purchase of
Class A Notes, and the Indenture Trustee hereby agree that so long as a Note
Insurer Default shall not have occurred and be continuing, the Note Insurer may
at any time during the continuation of any proceeding relating to a Preference
Claim direct all matters relating to such Preference Claim including, without
limitation, (i) the direction of any appeal of any order relating to any
Preference Claim and (ii) the posting of any surety, supersedeas or performance
bond pending any such appeal at the expense of the Note Insurer, but subject to
reimbursement as provided in the Insurance Agreement. In addition, and without
limitation of the foregoing, the Note Insurer shall be subrogated to, and each
Class A Noteholder and the Indenture Trustee hereby delegate and assign, to the
fullest extent permitted by law, the rights of the Indenture Trustee and each
Class A Noteholder in the conduct of any proceeding with respect to a Preference
Claim, including, without limitation, all rights of any party to an adversary
proceeding action with respect to any court order issued in connection with any
such Preference Claim.

                                   ARTICLE VI

                              The Indenture Trustee
                              ---------------------

         SECTION 6.1. Duties of Indenture Trustee. (a) The Indenture Trustee,
both prior to the occurrence of an Event of Default and after an Event of
Default shall have been cured or waived, shall undertake to perform such duties
and only such duties as are specifically set forth in this Indenture. If an
Event of Default shall have occurred and shall not have been cured or waived,
the Indenture Trustee may, and at the direction of the Note Insurer (or, if a
Note Insurer Default shall have occurred and is continuing, the Noteholders),
shall exercise such of the rights and powers vested in it by this Indenture and
shall use the same degree of care and skill in their exercise, as a prudent
person would exercise or use under the circumstances in the conduct of its own
affairs.

         (b) The Indenture Trustee, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Indenture Trustee that shall be specifically
required to be furnished pursuant to any provision of this Indenture, shall
examine them to determine whether they conform to the requirements of this
Indenture; provided, however, that the Indenture Trustee shall not be
responsible for the accuracy or content of any such resolution, certificate,
statement, opinion, report, document, order or other instrument. If any such
instrument is found not to conform in any material respect to the requirements
of this Indenture, the Indenture Trustee shall notify the Note Insurer and the
Noteholders of such instrument in the event that the Indenture Trustee, after so
requesting, does not receive a satisfactorily corrected instrument.

         (c) The Indenture Trustee shall take and maintain custody of the
Schedule of Receivables included as Schedule A to the Sale and Servicing
Agreement and shall retain copies of all Servicer's Certificates prepared
thereunder.

                                       34
<PAGE>

         (d) No provision of this Indenture shall be construed to relieve the
Indenture Trustee from liability for its own negligent action, its own negligent
failure to act, or its own bad faith; provided, however, that:

         (i) Prior to the occurrence of an Event of Default and after the curing
     or waiving of all such Events of Default that may have occurred, the duties
     and obligations of the Indenture Trustee shall be determined solely by the
     express provisions of this Indenture, the Indenture Trustee shall not be
     liable except for the performance of such duties and obligations as shall
     be specifically set forth in this Indenture, no implied covenants or
     obligations shall be read into this Indenture against the Indenture Trustee
     and, in the absence of bad faith on the part of the Indenture Trustee, the
     Indenture Trustee may conclusively rely on the truth of the statements and
     the correctness of the opinions expressed in any certificates or opinions
     furnished to the Indenture Trustee and conforming to the requirements of
     this Indenture;

         (ii) The Indenture Trustee shall not be liable for an error of judgment
     made in good faith by a Responsible Officer, unless it shall be proved that
     the Indenture Trustee shall have been negligent in ascertaining the
     pertinent facts;

         (iii) The Indenture Trustee shall not be liable with respect to any
     action taken, suffered, or omitted to be taken in good faith in accordance
     with this Indenture or at the direction of the Note Insurer or, after a
     Note Insurer Default, the Class A Noteholders evidencing not less than 25%
     of the Class A Note Balance, or, after the Policy Expiration Date, by the
     Class B Noteholders, evidencing not less than 25% of the Class B Note
     Balance relating to the time, method, and place of conducting any
     proceeding for any remedy available to the Indenture Trustee, or exercising
     any trust or power conferred upon the Indenture Trustee, under this
     Indenture;

         (iv) The Indenture Trustee shall not be charged with knowledge of any
     Event of Default, unless a Responsible Officer of the Indenture Trustee
     receives written notice of such Event of Default from the Servicer or the
     Transferor, as the case may be, the Note Insurer or, after a Note Insurer
     Default, the Class A Noteholders evidencing not less than 25% of the Class
     A Note Balance or, after the Policy Expiration Date, by the Class B
     Noteholders evidencing not less than 25% of the Class B Note Balance (such
     notice shall constitute actual knowledge of an Event of Default by the
     Indenture Trustee); and

         (v) The Indenture Trustee shall not be liable for any action taken,
     suffered or omitted by it in good faith and reasonably believed by it to be
     authorized or within the discretion or rights or powers conferred upon it
     by this Indenture.

         (e) The Indenture Trustee may, but shall not be required to, expend or
risk its own funds or otherwise incur financial liability in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers,
unless it shall have been provided with indemnity against such risk or liability
in form and substance satisfactory to the Indenture Trustee, and none of the
provisions contained in this Indenture shall in any event require the Indenture
Trustee to perform, or be responsible for the manner of performance of, any of
the obligations of the Servicer under this Indenture except during such time, if
any, as the Indenture Trustee, in its capacity as Back-up Servicer, shall be the
successor to, and be vested with the

                                       35
<PAGE>

rights, duties, powers, and privileges of, the Servicer in accordance with the
terms of the Sale and Servicing Agreement.

         (f) Except for actions expressly authorized by this Indenture, the
Indenture Trustee shall take no action reasonably likely to impair the security
interests created or existing under any Receivable or Financed Vehicle or to
impair the value of any Receivable or Financed Vehicle.

         (g) All information obtained by the Indenture Trustee regarding the
Obligors and the Receivables, whether upon the exercise of its rights under this
Indenture or otherwise, shall be maintained by the Indenture Trustee in
confidence and shall not be disclosed to any other Person, all in accordance
with the Federal Financial Privacy Law; provided that, nothing herein shall
prevent the Indenture Trustee from delivering copies of such information whether
or not constituting Confidential Information, and disclosing other information,
whether or not Confidential Information, to (i) its directors, officers,
employees, agents and professional consultants to the extent necessary to carry
on the Indenture Trustee's business in the ordinary course, (ii) any Noteholder
or the Note Insurer to the extent that such Noteholder or the Note Insurer is
entitled to such information under this Indenture, but not otherwise, (iii) any
governmental authority which specifically requests (or as to which applicable
regulations require) such information, (iv) any nationally recognized rating
agency in connection with the rating of the Notes by such agency, or (v) any
other Person to which such delivery or disclosure may be necessary or
appropriate, (a) in compliance with any applicable law, rule, regulation or
order, (b) in response to any subpoena or other legal process, (c) in connection
with any litigation to which the Indenture Trustee is a party, (d) in order to
enforce the rights of the Noteholders and the Note Insurer under the Trust
established hereunder, or (e) otherwise, in accordance with the Federal
Financial Privacy Law; provided, that, prior to any such disclosure, the
Indenture Trustee shall inform each such party (other than any Noteholder, the
Note Insurer or any other party to the Basic Documents) that receives
Confidential Information of the foregoing requirements and shall use its
commercially reasonable best efforts to cause such party to comply with such
requirements.

         (h) Money held in trust by the Indenture Trustee need not be segregated
from other funds except to the extent required by law or the terms of this
Indenture or the Sale and Servicing Agreement.

         (i) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section 6.1 and the provisions of the
TIA.

         (j) The Indenture Trustee shall, and hereby agrees that it will,
perform all of the obligations and duties required of it under the Sale and
Servicing Agreement.

         (k) The Indenture Trustee shall, and hereby agrees that it will, hold
the Policy in trust, and will hold any proceeds of any claim on the Policy in
trust, solely for the use and benefit of the Class A Noteholders.

         (l) Without limiting the generality of this Section 6.1, the Indenture
Trustee shall have no duty (i) to see to any recording, filing or depositing of
this Indenture or any

                                       36
<PAGE>

agreement referred to herein or any financing statement evidencing a security
interest in the Financed Vehicles, or to see to the maintenance of any such
recording or filing or depositing or to any recording, refiling or redepositing
of any thereof, (ii) to see to any insurance of the Financed Vehicles or
Obligors or to effect or maintain any such insurance, (iii) to see to the
payment or discharge of any tax, assessment or other governmental charge or any
Lien or encumbrance of any kind owing with respect to, assessed or levied
against any part of the Pledged Property, (iv) to confirm or verify the contents
of any reports or certificates delivered to the Indenture Trustee pursuant to
this Indenture or the Sale and Servicing Agreement believed by the Indenture
Trustee to be genuine and to have been signed or presented by the proper party
or parties, or (v) to inspect the Financed Vehicles at any time or ascertain or
inquire as to the performance or observance of any of the Issuer's, the
Transferor's or the Servicer's representations, warranties or covenants or the
Servicer's duties and obligations as Servicer and as custodian of the Receivable
Files under the Sale and Servicing Agreement.

         (m) In no event shall JPMorgan Chase Bank, in any of its capacities
hereunder, be deemed to have assumed any duties of the Owner Trustee under the
Delaware Business Trust Statute, common law, or the Trust Agreement.

         (n) The Indenture Trustee shall not be required to give any bond or
surety in respect of the powers granted to it under this Indenture.

         SECTION 6.2. Rights of Indenture Trustee. Except as otherwise provided
in Section 6.1(b):

         (i) The Indenture Trustee may rely and shall be protected in acting or
     refraining from acting upon any resolution, Officer's Certificate,
     Servicer's Certificate, certificate of auditors, or any other Opinion of
     Counsel, certificate, statement, instrument, opinion, report, notice,
     request, consent, order, appraisal, bond, or other paper or document
     believed by it to be genuine and to have been signed or presented by the
     proper party or parties.

         (ii) The Indenture Trustee may consult with counsel, and any written
     advice or Opinion of Counsel shall be full and complete authorization and
     protection in respect of any action taken or suffered or omitted by it
     under this Indenture in good faith and in accordance with such written
     advice or Opinion of Counsel.

         (iii) The Indenture Trustee shall be under no obligation to exercise
     any of the rights or powers vested in it by this Indenture, or to
     institute, conduct, or defend any litigation under this Indenture or in
     relation to this Indenture, at the request, order or direction of any of
     the Noteholders or the Note Insurer pursuant to the provisions of this
     Indenture, unless such Noteholders or the Note Insurer shall have offered
     to the Indenture Trustee reasonable security or indemnity in form and
     substance reasonably satisfactory to the Indenture Trustee against the
     costs, expenses, and liabilities that may be incurred therein or thereby;
     nothing contained in this Indenture, however, shall relieve the Indenture
     Trustee of the obligations, upon the occurrence of an Event of Default
     (that shall not have been cured or waived), to exercise such of the rights
     and powers vested in it by this Indenture, and to use the same degree of
     care and skill in their exercise as a

                                       37
<PAGE>

     prudent person would exercise or use under the circumstances in the conduct
     of its own affairs.

         (iv) The Indenture Trustee shall not be bound to make any investigation
     into the facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, consent, order, approval,
     bond, or other paper or document, unless requested in writing to do so by
     the Note Insurer (if no Note Insurer Default shall have occurred or be
     continuing), the Issuer or by the Class A Noteholders evidencing not less
     than 25% of the Note Balance or, after the Policy Expiration Date, by the
     Class B Noteholders evidencing not less than 25% of the Class B Note
     Balance; provided, however, that, if the payment within a reasonable time
     to the Indenture Trustee of the costs, expenses, or liabilities likely to
     be incurred by it in the making of such investigation shall be, in the
     opinion of the Indenture Trustee, not assured to the Indenture Trustee by
     the security afforded to it by the terms of this Indenture, the Indenture
     Trustee may require indemnity in form and substance satisfactory to it
     against such cost, expense, or liability as a condition to so proceeding.
     The reasonable expense of every such examination shall be paid by the
     Person making such request or, if paid by the Indenture Trustee, shall be
     reimbursed by the Person making such request upon demand.

         (v) The Indenture Trustee may execute any of the trusts or powers
     hereunder or perform any duties under this Indenture either directly or by
     or through agents or attorneys or a custodian. The Indenture Trustee shall
     not be responsible for any misconduct or negligence of any such agent or
     custodian appointed with due care by it hereunder, or of any agent or
     custodian of the Servicer in its capacity as Servicer or custodian or
     otherwise.

         (vi) The Indenture Trustee shall have no duty of independent inquiry,
     and the Indenture Trustee may rely upon the representations and warranties
     and covenants of the Transferor and the Servicer contained in the Basic
     Documents with respect to the Receivables and the Receivable Files.

         (vii) The Indenture Trustee may rely, as to factual matters relating to
     the Transferor or the Servicer, on an Officer's Certificate of the
     Transferor or Servicer, respectively.

         (viii) The Indenture Trustee shall not be required to take any action
     or refrain from taking any action under this Indenture, or any related
     documents referred to herein, nor shall any provision of this Indenture, or
     any such related document be deemed to impose a duty on the Indenture
     Trustee to take action, if the Indenture Trustee shall have been advised by
     counsel that such action is contrary to (i) the terms of this Indenture,
     (ii) any such related document or (iii) law.

                                       38
<PAGE>

         SECTION 6.3. Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Note Paying Agent,
Note Registrar, co-registrar or co-Note Paying Agent may do the same with like
rights.

         SECTION 6.4. Indenture Trustee's Disclaimer. The recitals contained
herein shall be taken as the statements of the Issuer and the Indenture Trustee
does not assume any responsibility for the correctness thereof. The Indenture
Trustee shall not make any representations as to the validity or sufficiency of
this Indenture, the Notes, or of any Receivable or related document. The
Indenture Trustee shall not at any time have any responsibility or liability for
or with respect to the validity or adequacy of this Indenture, the Trust Assets
or the Notes; it shall not be accountable for the Issuer's use of the proceeds
from the Notes; and it shall not be responsible for any statement of the Issuer
in the Indenture or in any document issued in connection with the sale of the
Notes or in the Notes; provided, however, that the foregoing shall not relieve
the Indenture Trustee of its obligation to perform its duties under this
Indenture. Except with respect to a claim based on the failure of the Indenture
Trustee to perform its duties under this Indenture or based on the Indenture
Trustee's negligence or willful misconduct, no recourse shall be had for any
claim based on any provision of this Indenture, the Notes, or any Receivable or
assignment thereof against the Indenture Trustee in its individual capacity, the
Indenture Trustee shall not have any personal obligation, liability, or duty
whatsoever to any Noteholder or any other Person with respect to any such claim,
and any such claim shall be asserted solely against the Issuer or any indemnitor
who shall furnish indemnity as provided in this Indenture. The Indenture Trustee
shall not be accountable for the use or application by the Issuer of any of the
Notes or of the proceeds of such Notes, or for the use or application of any
funds paid to the Servicer in respect of the Receivables.

         SECTION 6.5. Notice of Defaults. If an Event of Default or a Servicing
Termination Event under the Sale and Servicing Agreement occurs and is
continuing and if it is either known by, or written notice of the existence
thereof has been delivered to, a Responsible Officer of the Indenture Trustee,
the Indenture Trustee shall mail to each Noteholder notice of the Event of
Default or Servicer Termination Event within ninety (90) days after such
knowledge or notice occurs. Except in the case of a Default in payment of
principal of or interest on any Note (including payments pursuant to the
mandatory redemption provisions of such Note), the Indenture Trustee may
withhold the notice if and so long as a committee of two or more of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Noteholders.

         SECTION 6.6. Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver to each Noteholder such information as may be reasonably
required to enable such Holder to prepare its federal and state income tax
returns.

         SECTION 6.7. Compensation and Indemnity. (a) Pursuant to Section 5.6(c)
of the Sale and Servicing Agreement, the Issuer shall pay to the Indenture
Trustee from time to time compensation for its services The Indenture Trustee,
in its capacities, as Indenture Trustee, Trust Collateral Agent, Back-up
Servicer and Custodian, shall be entitled to receive the Indenture Trustee's
Fee, the Back-up Servicer's Fee and the Custodian's Fee on each Payment Date.
The Indenture Trustee's compensation shall not be limited by any law on
compensation of

                                       39
<PAGE>

a trustee of an express trust. Pursuant to Section 5.6(c) of the Sale and
Servicing Agreement, the Issuer shall reimburse the Indenture Trustee and the
Trust Collateral Agent for all reasonable out-of-pocket expenses incurred or
made by it, including costs of collection, in addition to the compensation for
its services. Such expenses shall include the reasonable compensation and
expenses and disbursements of the Indenture Trustee's, the Back-up Servicer's,
the Custodian's, the Collateral Agent's and the Trust Collateral Agent's agents,
counsel, accountants and experts. The Issuer shall cause the Servicer to
indemnify the Indenture Trustee, the Trust Collateral Agent, the Back-up
Servicer, the Custodian, the Collateral Agent and their respective officers,
directors, employees and agents against any and all loss, liability or expense
(including attorneys' fees and expenses) incurred by each of them in connection
with the acceptance or the administration of this trust and the performance of
its duties under the Basic Documents. The Indenture Trustee, the Trust
Collateral Agent, the Custodian, the Collateral Agent or the Back-up Servicer
shall notify the Issuer and the Servicer promptly of any claim for which it may
seek indemnity. Failure by the Indenture Trustee, the Back-up Servicer, the
Custodian, the Collateral Agent or the Trust Collateral Agent to so notify the
Issuer and the Servicer shall not relieve the Issuer of its obligations
hereunder or the Servicer of its obligations under Article XII of the Sale and
Servicing Agreement. The Issuer shall cause the Servicer to defend any such
claim, the Indenture Trustee, Trust Collateral Agent, the Custodian, the
Collateral Agent or the Back-up Servicer may have separate counsel and the
Issuer shall cause the Servicer to pay the fees and expenses of such counsel.
Neither the Issuer nor the Servicer need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Indenture Trustee, the
Back-up Servicer, the Custodian, the Collateral Agent or Trust Collateral Agent
through the Indenture Trustee's, the Back-up Servicer's, the Custodian's, the
Collateral Agent's or Trust Collateral Agent's own willful misconduct,
negligence or bad faith.

         (b) The Issuer's payment obligations pursuant to this Section shall
survive the discharge of this Indenture or the earlier resignation or removal of
the Indenture Trustee. When the Indenture Trustee, the Trust Collateral Agent,
the Custodian or the Back-up Servicer incurs expenses after the occurrence of a
Default specified in Section 5.1(iv) or (v) with respect to the Issuer, the
expenses are intended to constitute expenses of administration under Title 11 of
the United States Code or any other applicable federal or State bankruptcy,
insolvency or similar law. Notwithstanding anything else set forth in this
Indenture or the Basic Documents, the Indenture Trustee agrees that the
obligations of the Issuer (but not the Servicer) to the Indenture Trustee
hereunder and under the Basic Documents shall be recourse to the Pledged
Property only and specifically shall not be recourse to the assets of the
Certificateholder or any Noteholder. In addition, the Indenture Trustee agrees
that its recourse to the Issuer, the Pledged Property, the Transferor and
amounts held pursuant of the Spread Account Agreement shall be limited to the
right to receive the payments referred to in Section 5.6(c) and (d) of the Sale
and Servicing Agreement.

         SECTION 6.8. Replacement of Indenture Trustee. The Indenture Trustee
may resign at any time by so notifying the Issuer and the Note Insurer. To the
extent that the Indenture Trustee resigns hereunder, the Trust Collateral Agent
and the Custodian shall resign under the Sale and Servicing Agreement and the
Collateral Agent shall resign under the Spread Account Agreement. The Issuer may
and, at the request of the Note Insurer (unless a Note Insurer Default shall
have occurred and be continuing) shall, remove the Indenture Trustee, if:

         (i) the Indenture Trustee fails to comply with Section 6.11;

                                       40
<PAGE>

         (ii) a court having jurisdiction in the premises in respect of the
     Indenture Trustee in an involuntary case or proceeding under federal or
     state banking or bankruptcy laws, as now or hereafter constituted, or any
     other applicable federal or state bankruptcy, insolvency or other similar
     law, shall have entered a decree or order granting relief or appointing a
     receiver, liquidator, assignee, custodian, trustee, conservator,
     sequestrator (or similar official) for the Indenture Trustee or for any
     substantial part of the Indenture Trustee's property, or ordering the
     winding-up or liquidation of the Indenture Trustee's affairs;

         (iii) an involuntary case under the federal bankruptcy laws, as now or
     hereafter in effect, or another present or future federal or state
     bankruptcy, insolvency or similar law is commenced with respect to the
     Indenture Trustee and such case is not dismissed within sixty (60) days;

         (iv) the Indenture Trustee commences a voluntary case under any federal
     or state banking or bankruptcy laws, as now or hereafter constituted, or
     any other applicable federal or state bankruptcy, insolvency or other
     similar law, or consents to the appointment of or taking possession by a
     receiver, liquidator, assignee, custodian, trustee, conservator,
     sequestrator (or other similar official) for the Indenture Trustee or for
     any substantial part of the Indenture Trustee's property, or makes any
     assignment for the benefit of creditors or fails generally to pay its debts
     as such debts become due or takes any corporate action in furtherance of
     any of the foregoing;

         (v) the Trust Collateral Agent resigns or is removed in accordance with
     Section 10.8 of the Sale and Servicing Agreement;

         (vi) the Collateral Agent resigns or is removed in accordance with the
     Spread Account Agreement;

         (vii) the Back-up Servicer is removed in accordance with Section 8.5 of
     the Sale and Servicing Agreement; or

         (viii) the Indenture Trustee otherwise becomes incapable of acting.

         If the Indenture Trustee resigns or is removed or if a vacancy exists
in the office of the Indenture Trustee for any reason (the Indenture Trustee in
such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall promptly appoint a successor Indenture Trustee and Trust Collateral
Agent acceptable to the Note Insurer (so long as a Note Insurer Default shall
not have occurred and be continuing). If the Issuer fails to appoint such a
successor Indenture Trustee and Trust Collateral Agent, the Controlling Party
may appoint a successor Indenture Trustee and Trust Collateral Agent.

         A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, the Note Insurer (provided that
no Note Insurer Default shall have occurred and be continuing) and to the
Issuer. Thereupon the resignation or removal of the retiring Indenture Trustee
shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the retiring Indenture Trustee under this Indenture
subject to satisfaction of the Rating Agency Condition. The successor Indenture

                                       41
<PAGE>

Trustee shall mail a notice of its succession to Noteholders. The retiring
Indenture Trustee shall promptly transfer all property held by it as Indenture
Trustee to the successor Indenture Trustee.

         If a successor Indenture Trustee does not take office within sixty (60)
days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Note Insurer (so long as no Note Insurer
Default has occurred and is continuing) or the Majorityholders (if a Note
Insurer Default has occurred and is continuing) may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

         If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

         Any resignation or removal of the Indenture Trustee and appointment of
a successor Indenture Trustee pursuant to any of the provisions of this Section
shall not become effective until acceptance of appointment by the successor
Indenture Trustee pursuant to this Section and payment of all fees and expenses
owed to the retiring Indenture Trustee.

         Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's obligations under Section 6.7 shall continue for the
benefit of the retiring Indenture Trustee.

         SECTION 6.9. Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee. The Indenture
Trustee shall provide the Rating Agencies with written notice of any such
transaction and shall mail notice of such merger or consolidation to the Rating
Agencies.

         In case at the time such successor or successors by merger, conversion
or consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor Indenture Trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

         SECTION 6.10. Appointment of Co-Trustee or Separate Trustee.

         (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust may at the time be located, the Indenture Trustee
with the consent of the Note Insurer (so long as a Note Insurer Default shall
not have occurred and be continuing) shall have the power and may execute and
deliver all instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Noteholders, such title to the Trust, or any part hereof, and,
subject to the other provisions of this Section, such powers, duties,

                                       42
<PAGE>

obligations, rights and trusts as the Indenture Trustee may consider necessary
or desirable. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor Indenture Trustee under Section
6.11 and no notice to Noteholders of the appointment of any co-trustee or
separate trustee shall be required under Section 6.8 hereof.

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

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

         (ii) no trustee hereunder shall be personally liable by reason of any
     act or omission of any other trustee hereunder, including acts or omissions
     of predecessor or successor Indenture Trustees; and

         (iii) the Indenture Trustee may at any time accept the resignation of
     or remove any separate trustee or co-trustee.

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

         (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect of
this Indenture on its behalf and in its name. If any separate trustee or
co-trustee shall die, dissolve, become insolvent, become incapable of acting,
resign or be removed, all of its estates, properties, rights, remedies and
trusts shall vest in and be exercised by the Indenture Trustee, to the extent
permitted by law, without the appointment of a new or successor Indenture
Trustee.

         (e) Any and all amounts relating to the fees and expenses of the
co-trustee or separate trustee will be borne by the Pledged Property.

                                       43
<PAGE>

         SECTION 6.11. Eligibility. The Indenture Trustee shall at all times
satisfy the requirements of Section 310(a) of the TIA. The Indenture Trustee
under this Indenture shall at all times be organized and doing business under
the laws of the United States of America or any state thereof; authorized under
such laws to exercise corporate trust powers; having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by
Federal or State authorities satisfactory to the Note Insurer; and having a
rating, both with respect to long-term and short-term unsecured obligations, of
not less than investment grade by each Rating Agency. If such corporation shall
publish reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purpose of this Section 6.11, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Indenture Trustee shall cease to be eligible in accordance with the provisions
of this Section 6.11, the Indenture Trustee shall resign immediately in the
manner and with the effect specified in Section 6.8. The Indenture Trustee shall
comply with Section 310(b) of the TIA, including the optional provision
permitted by the second sentence of Section 310(b)(9) of the TIA; provided,
however, that there shall be excluded from the operation of Section 310(b)(1) of
the TIA any indenture or indentures under which other securities of the Issuer
are outstanding if the requirements for such exclusion set forth in 310(b)(1) of
the TIA are met.

         SECTION 6.12. Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with Section 311(a) of the TIA, excluding any
creditor relationship listed in Section 311(b) of the TIA. A Trustee who has
resigned or been removed shall be subject to TIA (Section) 311(a) to the extent
indicated

         SECTION 6.13. Representations and Warranties of the Indenture Trustee.
The Indenture Trustee represents and warrants to the Issuer and the Note Insurer
as follows:

         (a) Due Organization. The Indenture Trustee is a New York banking
corporation in good standing under the laws of the State of New York and is duly
authorized and licensed under applicable law to conduct its business as
presently conducted.

         (b) Corporate Power. The Indenture Trustee has all requisite right,
power and authority to execute and deliver this Indenture and to perform all of
its duties as Indenture Trustee hereunder.

         (c) Due Authorization. The execution and delivery by the Indenture
Trustee of this Indenture and the other Basic Documents to which it is a party,
and the performance by the Indenture Trustee of its duties hereunder and
thereunder, have been duly authorized by all necessary corporate proceedings and
no further approvals or filings, including any governmental approvals, are
required for the valid execution and delivery by the Indenture Trustee, or the
performance by the Indenture Trustee, of this Indenture and such other Basic
Documents.

         SECTION 6.14. Valid and Binding Indenture. The Indenture Trustee has
duly executed and delivered this Indenture and each other Basic Document to
which it is a party, and each of this Indenture and each such other Basic
Document constitutes the legal, valid and binding obligation of the Indenture
Trustee, enforceable against the Indenture Trustee in accordance with its terms,
except as (i) such enforceability may be limited by bankruptcy,

                                       44
<PAGE>

insolvency, reorganization and similar laws relating to or affecting the
enforcement of creditors' rights generally and (ii) the availability of
equitable remedies may be limited by equitable principles of general
applicability.

         SECTION 6.15. Waiver of Setoffs. The Indenture Trustee hereby expressly
waives any and all rights of setoff that the Indenture Trustee may otherwise at
any time have under applicable law with respect to any Account and agrees that
amounts in the Accounts shall at all times be held and applied solely in
accordance with the provisions hereof.

         SECTION 6.16. Control by the Controlling Party. The Indenture Trustee
shall comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party, except that if any
Event of Default shall have occurred and be continuing, the Indenture Trustee
shall act upon and comply with notices and instructions given by the Controlling
Party alone in the place and stead of the Issuer.

                                   ARTICLE VII

                      Noteholders' Lists and Communications
                      -------------------------------------

         SECTION 7.1. Issuer To Furnish To Indenture Trustee Names and Addresses
of Noteholders. The Issuer will furnish or cause to be furnished to the
Indenture Trustee (a) not more than five days after the earlier of (i) each
Record Date and (ii) three months after the last Record Date, a list, in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Holders as of such Record Date, (b) at such other times as the Indenture
Trustee may request in writing, within thirty (30) days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than 10 days prior to the time such list is furnished; provided, however,
that so long as the Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished. The Indenture Trustee or, if the Indenture Trustee
is not the Note Registrar, the Issuer shall furnish to the Note Insurer in
writing on an annual basis on each June 30 and at such other times as the Note
Insurer may request a copy of the list.

         SECTION 7.2. Preservation of Information; Communications to
Noteholders.

         (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders contained in the
most recent list furnished to the Indenture Trustee as provided in Section 7.1
and the names and addresses of Holders received by the Indenture Trustee in its
capacity as Note Registrar. The Indenture Trustee may destroy any list furnished
to it as provided in such Section 7.1 upon receipt of a new list so furnished.

         (b) Noteholders may communicate, pursuant to Section 312(b) of the TIA,
with other Noteholders with respect to their rights under this Indenture or
under the Notes.

         (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of Section 312(c) of the TIA.

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<PAGE>

         SECTION 7.3. Reports by Issuer.

         (a) The Issuer shall:

         (i) file with the Indenture Trustee, within 15 days after the Issuer is
     required to file the same with the Commission, copies of the annual reports
     and of the information, documents and other reports (or copies of such
     portions of any of the foregoing as the Commission may from time to time by
     rules and regulations prescribe) which the Issuer may be required to file
     with the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

         (ii) file with the Indenture Trustee and the Commission in accordance
     with rules and regulations prescribed from time to time by the Commission
     such additional information, documents and reports with respect to
     compliance by the Issuer with the conditions and covenants of this
     Indenture as may be required from time to time by such rules and
     regulations; and

         (iii) supply to the Indenture Trustee (and the Indenture Trustee shall
     transmit by mail to all Class A Noteholders described in Section 313(c) of
     the TIA) such summaries of any information, documents and reports required
     to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section
     7.3(a) as may be required by rules and regulations prescribed from time to
     time by the Commission.

         (b) Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on December 31 of each year.

         SECTION 7.4. Reports by Indenture Trustee. If required by Section
313(a) of the TIA, within 60 days after the end of each year, commencing with
the year ended December 31, 2002, the Indenture Trustee shall mail to each Class
A Noteholder as required by Section 313(c) of the TIA a brief report dated a of
such date that complies with Section 313(a) of the TIA. The Indenture Trustee
shall also comply with Section 313(b) of the TIA.

         A copy of each report at the time of its mailing to Class A Noteholders
shall be filed by the Indenture Trustee with the Commission and each stock
exchange, if any, on which the Class A Notes are listed. The Issuer shall notify
the Indenture Trustee if and when the Class A Notes are listed on any stock
exchange.

                                  ARTICLE VIII

                          Collection of Money; Releases
                          -----------------------------

         SECTION 8.1. Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture and the Sale
and Servicing Agreement. The Indenture Trustee shall apply all such money
received by it, or cause the Trust Collateral Agent to apply all money received
by it, as provided in this Indenture and the Sale and Servicing Agreement.
Except as otherwise expressly provided in this Indenture or in the Sale and
Servicing Agreement, if any default occurs in the

                                       46
<PAGE>

making of any payment or performance under any agreement or instrument that is
part of the Pledged Property, the Indenture Trustee may take such action as may
be appropriate to enforce such payment or performance, including the institution
and prosecution of appropriate proceedings. Any such action shall be without
prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

         SECTION 8.2. Release of Pledged Property (a) Subject to the payment of
its fees and expenses and other amounts pursuant to Section 6.7, the Indenture
Trustee may, and when required by the provisions of this Indenture shall,
execute instruments to release property from the lien of this Indenture, in a
manner and under circumstances that are not inconsistent with the provisions of
this Indenture. No party relying upon an instrument executed by the Indenture
Trustee as provided in this Article VIII shall be bound to ascertain the
Indenture Trustee's authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.

         (b) The Indenture Trustee shall, at such time as there are no Notes
outstanding, all amounts owing to the Note Insurer under the Basic Documents
have been paid and all sums due the Indenture Trustee pursuant to Section 6.7
have been paid, release the Pledged Property from the lien of this Indenture and
release to the Issuer or any other Person entitled thereto any funds then on
deposit in the Accounts. The Indenture Trustee shall release property from the
lien of this Indenture pursuant to this Section 8.2(b) only upon receipt of an
Issuer Request accompanied by an Officer's Certificate and an Opinion of Counsel
and (if required by the TIA) Independent Certificates in accordance with Section
314(c) and Section 314(d)(1) of the TIA.

         SECTION 8.3. Opinion of Counsel. The Indenture Trustee shall receive at
least seven days' notice when requested by the Issuer to take any action
pursuant to Section 8.2(a), accompanied by copies of any instruments involved,
and the Indenture Trustee shall also require as a condition to such action, an
Opinion of Counsel in form and substance satisfactory to the Indenture Trustee,
stating the legal effect of any such action, outlining the steps required to
complete the same, and concluding that all conditions precedent to the taking of
such action have been complied with and such action will not materially and
adversely impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair
value of the Pledged Property. Counsel rendering any such opinion may rely,
without independent investigation, on the accuracy and validity of any
certificate or other instrument delivered to the Indenture Trustee in connection
with any such action.

                                   ARTICLE IX

                             Supplemental Indentures
                             -----------------------

         SECTION 9.1. Supplemental Indentures Without Consent of Noteholders.
Without the consent of the Holders of any Notes but with the prior written
consent of the Note Insurer (unless a Note Insurer Default shall have occurred
and be continuing) and with prior notice to the Rating Agencies by the Issuer,
as evidenced to the Indenture Trustee, the Issuer and the Indenture Trustee,
when authorized by an Issuer Order, at any time and from time to time, may enter
into one or more indentures supplemental hereto (which shall conform to the

                                       47
<PAGE>

provisions of the TIA as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

         (i) to correct or amplify the description of any property at any time
     subject to the lien of this Indenture, or better to assure, convey and
     confirm unto the Indenture Trustee any property subject or required to be
     subjected to the lien of this Indenture, or to subject to the lien of this
     Indenture additional property;

         (ii) to evidence the succession, in compliance with the applicable
     provisions hereof, of another person to the Issuer, and the assumption by
     any such successor of the covenants of the Issuer herein and in the Notes
     contained;

         (iii) to add to the covenants of the Issuer, for the benefit of the
     Holders of the Notes, or to surrender any right or power herein conferred
     upon the Issuer;

         (iv) to convey, transfer, assign, mortgage or pledge any property to or
     with the Indenture Trustee;

         (v) to cure any ambiguity, to correct or supplement any provision
     herein or in any supplemental indenture which may be inconsistent with any
     other provision herein or in any supplemental indenture or to make any
     other provisions with respect to matters or questions arising under this
     Indenture or in any supplemental indenture; provided that such action shall
     not adversely affect in any material respect the interests of the Holders
     of the Notes, as evidenced by satisfaction of the Rating Agency Condition
     with respect to such supplemental indenture; or

         (vi) to evidence and provide for the acceptance of the appointment
     hereunder by a successor Indenture Trustee with respect to the Notes and to
     add to or change any of the provisions of this Indenture as shall be
     necessary to facilitate the administration of the trusts hereunder by more
     than one trustee, pursuant to the requirements of Article VI.

         (vii) to modify, eliminate or add to the provisions of this Indenture
     to such extent as shall be necessary to effect the qualification of this
     Indenture under the TIA or under any similar federal statute hereafter
     enacted and to add to this Indenture such other provisions as may be
     expressly required by the TIA.

         The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

         SECTION 9.2. Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to the Rating Agencies, with the prior written consent of the
Note Insurer (or, if a Note Insurer Default shall have occurred and be
continuing, with the consent of the Majorityholders), enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or of modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that, subject to the express rights of the Note
Insurer under the Basic Documents, no such

                                       48
<PAGE>

supplemental indenture shall, without the consent of the Holder of each
outstanding Note affected thereby:

         (i) change the date of payment of any installment of principal of or
     interest on any Note, or reduce the principal amount thereof, the Note Rate
     thereon or the Redemption Price with respect thereto, change the provision
     of this Indenture relating to the application of collections on, or the
     proceeds of the sale of, the Pledged Property to payment of principal of or
     interest on the Notes, or change any place of payment where, or the coin or
     currency in which, any Note or the interest thereon is payable;

         (ii) impair the right to institute suit for the enforcement of the
     provisions of this Indenture requiring the application of funds available
     therefor, as provided in Article V, to the payment of any such amount due
     on the Notes on or after the respective due dates thereof (or, in the case
     of redemption, on or after the Redemption Date);

         (iii) reduce the percentage of the outstanding Note Balance of the
     Notes, the consent of the Holders of which is required for any such
     supplemental indenture, or the consent of the Holders of which is required
     for any waiver of compliance with certain provisions of this Indenture or
     certain defaults hereunder and their consequences provided for in this
     Indenture;

         (iv) reduce the percentage of the outstanding Note Balance of the Notes
     required to direct the Indenture Trustee to direct the Issuer to sell or
     liquidate the Pledged Property pursuant to Section 5.4;

         (v) modify any provision of this Section except to increase any
     percentage specified herein or to provide that certain additional
     provisions of this Indenture or the Basic Documents cannot be modified or
     waived without the consent of the Holder of each Outstanding Note affected
     thereby;

         (vi) modify any of the provisions of this Indenture in such manner as
     to affect the calculation of the amount of any payment of interest or
     principal due on any Note on any Payment Date (including the calculation of
     any of the individual components of such calculation) or to affect the
     rights of the Noteholders to the benefit of any provisions for the
     mandatory redemption of the Notes contained herein; or

         (vii) permit the creation of any lien ranking prior to or on a parity
     with the lien of this Indenture with respect to any part of the Pledged
     Property or, except as otherwise permitted or contemplated herein or in any
     of the Basic Documents, terminate the lien of this Indenture on any
     property at any time subject hereto or deprive the Holder of any Note of
     the security provided by the lien of this Indenture.

         The Indenture Trustee may determine whether or not any Notes would be
affected by any supplemental indenture and any such determination shall be
conclusive upon the Holders of all Notes, whether theretofore or thereafter
authenticated and delivered hereunder. The Indenture Trustee shall not be liable
for any such determination made in good faith.

                                       49
<PAGE>

         It shall not be necessary for any Act of Noteholders under this Section
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

         Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section, the Indenture Trustee shall
mail to the Holders of the Notes to which such amendment or supplemental
indenture relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

         SECTION 9.3. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the amendments or modifications thereby of the
trusts created by this Indenture, the Indenture Trustee shall be entitled to
receive, shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Indenture Trustee may, but shall not be obligated to, enter
into any such supplemental indenture that affects the Indenture Trustee's own
rights, duties, liabilities or immunities under this Indenture or otherwise.

         SECTION 9.4. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

         SECTION 9.5. Conformity With Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the TIA as then in effect so
long as this Indenture shall then be qualified under the TIA.

         SECTION 9.6. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                       50
<PAGE>

                                    ARTICLE X

                               Redemption of Notes
                               -------------------

         SECTION 10.1. Redemption. (a) The Notes are subject to redemption in
whole, but not in part, by the Certificateholder on any Payment Date occurring
on or after the date on which the outstanding Pool Balance is less than or equal
to 10% of the Original Pool Balance, at a price equal to the Redemption Price.
If the Notes are to be redeemed pursuant to this Section 10.1(a), the
Certificateholder will be required to furnish notice of such election to the
Indenture Trustee not later than the end of the Collection Period for the
related Payment Date and deposit with the Indenture Trustee in the Note Account
the Redemption Price of the Notes to be redeemed, plus any amounts owed to the
Note Insurer under the Insurance Agreement and all amounts owed to the Indenture
Trustee under this Indenture; whereupon all such Notes shall be due and payable
on the Redemption Date upon the furnishing of a notice complying with Section
10.2 to each Holder of Notes. The Indenture Trustee shall furnish the Note
Insurer and the Rating Agencies notice of such redemption.

         SECTION 10.2. Form of Redemption Notice. Notice of redemption under
Section 10.1(a) shall be given by the Indenture Trustee by facsimile or by
first-class mail, postage prepaid, transmitted or mailed prior to the applicable
Redemption Date to each Holder of Notes, as of the close of business on the
Record Date preceding the applicable Redemption Date, at such Holder's address
appearing in the Note Register.

         All notices of redemption shall state:

         (i) the Redemption Date;

         (ii) the Redemption Price;

         (iii) that the Record Date otherwise applicable to such Redemption Date
     is not applicable and that payments shall be made only upon presentation
     and surrender of such Notes and the place where such Notes are to be
     surrendered for payment of the Redemption Price (which shall be the office
     or agency of the Issuer to be maintained as provided in Section 3.2); and

         (iv) that interest on the Notes shall cease to accrue on the Redemption
     Date.

         Notice of redemption of the Notes shall be given by the Indenture
Trustee in the name and at the expense of the Issuer. Failure to give notice of
redemption, or any defect therein, to any Holder of any Note shall not impair or
affect the validity of the redemption of any other Note.

         SECTION 10.3. Notes Payable on Redemption Date. The Notes to be
redeemed shall, following notice of redemption as required by Section 10.2, on
the Redemption Date become due and payable at the Redemption Price and (unless
the Certificateholder shall default in the payment of the Redemption Price) no
interest shall accrue on the Redemption Price for any period after the date to
which accrued interest is calculated for purposes of calculating the Redemption
Price.

                                       51
<PAGE>

                                   ARTICLE XI

                                  Miscellaneous
                                  -------------

         SECTION 11.1. Compliance Certificates and Opinions, etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee and to the Note Insurer (i) an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Indenture, no additional certificate or opinion need be furnished and
(iii) (if required by the TIA) an Independent Certificate from a firm of
certified public accountants.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

         (i) a statement that each signatory of such certificate or opinion has
     read or has caused to be read such covenant or condition and the
     definitions herein relating thereto;

         (ii) a brief statement as to the nature and scope of the examination or
     investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

         (iii) a statement that, in the opinion of each such signatory, such
     signatory has made such examination or investigation as is necessary to
     enable such signatory to express an informed opinion as to whether or not
     such covenant or condition has been complied with; and

         (iv) a statement as to whether, in the opinion of each such signatory
     such condition or covenant has been complied with.

         (b) Prior to the deposit of any Pledged Property or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.1(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee and the Note
Insurer an Officer's Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (within 90 days of such
deposit) to the Issuer of the Pledged Property or other property or securities
to be so deposited.

         (i) Whenever the Issuer is required to furnish to the Indenture Trustee
     and the Note Insurer an Officer's Certificate certifying or stating the
     opinion of any signer thereof as to the matters described in clause (i)
     above, the Issuer shall also deliver to the Indenture Trustee and the Note
     Insurer an Independent Certificate as to the same matters, if the fair
     value to the Issuer of the securities to be so deposited and of all other
     such securities made the basis of any such withdrawal or release since the
     commencement of the then-current fiscal year of the Issuer, as set forth in
     the certificates delivered pursuant

                                       52
<PAGE>

     to clause (i) above and this clause (ii), is 10% or more of the outstanding
     Note Balance of the Notes, but such a certificate need not be furnished
     with respect to any securities so deposited, if the fair value thereof to
     the Issuer as set forth in the related Officer's Certificate is less than
     $25,000 or less than 1% of the outstanding Note Balance of the Notes.

         (ii) Other than with respect to the release of any Purchased
     Receivables or Liquidated Receivables or any Receivable that has been paid
     in full by or on behalf of the related Obligor, whenever any property or
     securities are to be released from the lien of this Indenture, the Issuer
     shall also furnish to the Indenture Trustee and the Note Insurer an
     Officer's Certificate certifying or stating the opinion of each person
     signing such certificate as to the fair value (within ninety (90) days of
     such release) of the property or securities proposed to be released and
     stating that in the opinion of such person the proposed release will not
     impair the security under this Indenture in contravention of the provisions
     hereof.

         (iii) Whenever the Issuer is required to furnish to the Indenture
     Trustee and the Note Insurer an Officer's Certificate certifying or stating
     the opinion of any signer thereof as to the matters described in clause
     (iii) above, the Issuer shall also furnish to the Indenture Trustee and the
     Note Insurer an Independent Certificate as to the same matters if the fair
     value of the property or securities and of all other property other than
     Purchased Receivables and Defaulted Receivables, or securities released
     from the lien of this Indenture since the commencement of the then current
     calendar year, as set forth in the certificates required by clause (iii)
     above and this clause (iv), equals 10% or more of the outstanding Note
     Balance of the Notes, but such certificate need not be furnished in the
     case of any release of property or securities if the fair value thereof as
     set forth in the related Officer's Certificate is less than $25,000 or less
     than 1% of the then outstanding Note Balance of the Notes.

         (iv) Notwithstanding Section 2.11 or any other provision of this
     Section, the Issuer may (A) collect, liquidate, sell or otherwise dispose
     of Receivables as and to the extent permitted or required by the Basic
     Documents and (B) make cash payments out of the Accounts as and to the
     extent permitted or required by the Basic Documents.

         SECTION 11.2. Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

         Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his or her certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or

                                       53
<PAGE>

opinion of, or representations by, an officer or officers of the Servicer, the
Transferor or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Servicer, the Transferor or the
Issuer, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

         Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

         Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

         SECTION 11.3. Acts of Noteholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee, and, where it
is hereby expressly required, to the Issuer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "Act" of the Noteholders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
6.1) conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section.

         (b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any customary manner of the Indenture
Trustee.

         (c) The ownership of Notes shall be proved by the Note Register.

         (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes shall bind the Holder of every
Note issued upon the registration thereof or in exchange therefor or in lieu
thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

                                       54
<PAGE>

         SECTION 11.4. Notices, etc., to Indenture Trustee, Issuer and Rating
Agencies. Any request, demand, authorization, direction, notice, consent, waiver
or Act of Noteholders or other documents provided or permitted by this Indenture
to be made upon, given or furnished to or filed with:

         (a) The Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed certified mail, return receipt requested and shall
be deemed to have been duly given upon receipt to the Indenture Trustee at its
Corporate Trust Office, or

         (b) The Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed certified mail, return receipt requested and shall
deemed to have been duly given upon receipt to the Issuer addressed to: Long
Beach Acceptance Auto Receivables Trust 2002-A, in care of Wilmington Trust
Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19890-0001, Attention: Corporate Trust Administration (Telecopy: (302)
651-8882), or at any other address previously furnished in writing to the
Indenture Trustee by Issuer. The Issuer shall promptly transmit any notice
received by it from the Noteholders to the Indenture Trustee.

         (c) The Note Insurer by the Issuer or the Indenture Trustee shall be
sufficient for any purpose hereunder if in writing and mailed by registered mail
or personally delivered or telexed or telecopied to the recipient as follows:

         To the Note Insurer:    Financial Security Assurance Inc.
                                 350 Park Avenue
                                 New York, NY 10022
                                 Attention:  Transaction Oversight
                                 Re: Long Beach Acceptance Auto Receivables
                                 Trust 2002-A

                                 Telex No.:      (212) 688-3101
                                 Confirmation:   (212) 826-0100
                                 Telecopy Nos.:  (212) 339-3518 or
                                                 (212) 339-3529

(In each case in which notice or other communication to the Note Insurer refers
to an Event of Default, a claim on the Policy or with respect to which failure
on the part of the Note Insurer to respond shall be deemed to constitute consent
or acceptance, then a copy of such notice or other communication should also be
sent to the attention of the General Counsel and the Head--Financial Guaranty
Group "URGENT MATERIAL ENCLOSED.")

         Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally
delivered, delivered by overnight courier or mailed certified mail, return
receipt requested to (i) in the case of Moody's, at the following address:
Moody's Investors Service, Inc., 99 Church Street, New York, New York 10004 and
(ii) in the case of S&P, at the following address: Standard & Poor's Ratings
Services, 55 Water Street, 40th Floor, New York, New York 10041, Attention of
Asset-Backed

                                       55
<PAGE>

Surveillance Department; or as to each of the foregoing, at such other address
as shall be designated by written notice to the other parties.

         SECTION 11.5. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

         Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

         In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event to Noteholders when such notice is required to be
given pursuant to any provision of this Indenture, then any manner of giving
such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

         Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute a Default or
Event of Default.

         SECTION 11.6. Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the TIA,
such required provision shall control.

         The provisions of TIA (Sectios) 310 through 317 that impose duties on
any person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

         SECTION 11.7. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         SECTION 11.8. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents of the
Indenture Trustee.

                                       56
<PAGE>

         SECTION 11.9. Separability. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         SECTION 11.10. Benefits of Indenture. The Note Insurer and its
successors and assigns shall be third-party beneficiaries to the provisions of
this Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Note Insurer Default shall have
occurred and be continuing. Nothing in this Indenture or in the Notes, express
or implied, shall give to any Person, other than the parties hereto and their
successors hereunder, and the Noteholders, and any other party secured
hereunder, and any other person with an ownership interest in any part of the
Pledged Property, any benefit or any legal or equitable right, remedy or claim
under this Indenture. The Note Insurer may disclaim any of its rights and powers
under this Indenture (in which case the Indenture Trustee may exercise such
right or power hereunder), but not its duties and obligations under the Policy,
upon delivery of a written notice to the Indenture Trustee.

         SECTION 11.11. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date an which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

         SECTION 11.12. GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         SECTION 11.13. Counterparts. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

         SECTION 11.14. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee and the Note Insurer) to the effect that
such recording is necessary either for the protection of the Noteholders or any
other person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee or the Trust Collateral Agent under this
Indenture or the Sale and Servicing Agreement, or the Collateral Agent under the
Spread Account Agreement.

         SECTION 11.15. Trust Obligation.

         (a) No recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Transferor, the Servicer, the Owner Trustee,
the Trust Collateral Agent or the Indenture Trustee on the Notes or under this
Indenture or any certificate or other writing delivered in connection herewith
or therewith, against (i) the Issuer, the Transferor, the Servicer, the
Indenture Trustee, the Trust Collateral Agent or the Owner Trustee in its
individual

                                       57
<PAGE>

capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of the
Transferor, the Servicer, the Indenture Trustee, the Trust Collateral Agent or
the Owner Trustee in its individual capacity, any holder of a beneficial
interest in the Issuer, the Transferor, the Servicer, the Owner Trustee, the
Trust Collateral Agent or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Indenture Trustee, the Trust Collateral Agent
or the Owner Trustee in its individual capacity, except in each case as any such
Person may have expressly agreed (it being understood that the Indenture
Trustee, the Trust Collateral Agent and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of the Trust Agreement.

         (b) It is expressly understood and agreed by the parties hereto that
(a) this Agreement is executed and delivered by WTC, not individually or
personally but solely as Owner Trustee of the Issuer in the exercise of the
powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the
Issuer is made and intended not as personal representations, undertakings and
agreements by WTC but is made and intended for the purpose for binding only the
Issuer, (c) nothing herein contained shall be construed as creating any
liability on WTC, individually or personally, to perform any covenant either
expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties hereto and by any Person claiming by, through or
under the parties hereto and (d) under no circumstances shall WTC be personally
liable for the payment of any indebtedness or expenses of the Issuer or be
liable for the breach or failure of any obligation, representation, warranty or
covenant made or undertaken by the Issuer under this Agreement or any other
related document.

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

         SECTION 11.16. No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not prior to the date that is one year and one day after
the payment in full of all outstanding Notes institute against the Transferor or
the Issuer, or join in any institution against the Transferor or the Issuer of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or State
bankruptcy or similar law in connection with any obligations relating to the
Notes, this Indenture or any of the Basic Documents.

         SECTION 11.17. Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee or of the
Note Insurer, during the Issuer's normal business hours, to examine all the
books of account, records, reports, and other

                                       58
<PAGE>

papers of the Issuer, to make copies and extracts therefrom, to cause such books
to be audited by independent certified public accountants, and to discuss the
Issuer's affairs, finances and accounts with the Issuer's officers, employees,
and independent certified public accountants, all at such reasonable times and
as often as may be reasonably requested. Notwithstanding anything herein to the
contrary, the foregoing shall not be construed to prohibit (i) disclosure of any
and all information that is or becomes publicly known, (ii) disclosure of any
and all information (A) if required to do so by any applicable statute, law,
rule or regulation, (B) to any government agency or regulatory body having or
claiming authority to regulate or oversee any respects of the Indenture
Trustee's business or that of its affiliates, (C) pursuant to any subpoena,
civil investigative demand or similar demand or request of any court, regulatory
authority, arbitrator or arbitration to which the Indenture Trustee or an
affiliate or an officer, director, employer or shareholder thereof is a party,
(D) in any preliminary or final offering circular, registration statement or
contract or other document pertaining to the transactions contemplated by the
Indenture approved in advance by the Servicer or the Issuer or (E) to any
independent or internal auditor, agent, employee or attorney of the Indenture
Trustee having a need to know the same, provided that the Indenture Trustee
advises such recipient of the confidential nature of the information being
disclosed, or (iii) any other disclosure authorized by the Servicer or the
Issuer.

         SECTION 11.18. Rights of Note Insurer as Controlling Party. So long as
no Note Insurer Default has occurred and is continuing, except as otherwise
specifically provided herein, whenever Noteholder action, consent or approval is
required under this Indenture, such action, consent or approval shall be deemed
to have been taken or given on behalf of, and shall be binding upon, all
Noteholders if the Note Insurer agrees to take such action or give such consent
or approval. If a Note Insurer Default has occurred and is continuing, any
provision, including this Section 11.17, which gives the Note Insurer any rights
as Controlling Party shall be inoperative during the period of such Note Insurer
Default and such rights shall instead vest in the Indenture Trustee acting at
the direction of the Majorityholders.

         SECTION 11.19. Effect of Policy Expiration Date. Notwithstanding
anything to the contrary set forth herein, all references to any right of the
Note Insurer to direct, appoint, consent to, accept, approve of, take or omit to
take any action under this Indenture or any other Basic Document shall be
inapplicable at all times after the Policy Expiration Date, and (i) if such
reference provides for another party or parties to take or omit to take any such
action following a Note Insurer Default, such party or parties shall also be
entitled to take or omit to take such action following the Policy Expiration
Date and (ii) if such reference does not provide for another party or parties to
take or omit to take any such action following a Note Insurer Default, then the
Indenture Trustee acting at the direction of the Majorityholders shall have the
right to take or omit to take such action following the Policy Expiration Date.
In addition, any other provision of this Indenture or any other Basic Document
which is operative based in whole or in part on whether a Note Insurer Default
has or has not occurred shall, at all times on or after the Policy Expiration
Date, be deemed to refer to whether or not the Policy Expiration Date has
occurred.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       59
<PAGE>

         IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture to be duly executed by their respective officers, hereunto duly
authorized, all as of the day and year first above written.

                                 LONG BEACH ACCEPTANCE AUTO
                                 RECEIVABLES TRUST 2002-A,

                                 By: Wilmington Trust Company, not in its
                                 individual capacity but solely as Owner Trustee

                                 By: /s/ Anita E. Dallago
                                     --------------------
                                 Name: Anita E. Dallago
                                 Title: Senior Financial Services Officer

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

                                 By: /s/ Jennifer H. Baran
                                     ---------------------
                                 Name: Jennifer H. Baran
                                 Title: Vice President

<PAGE>

                                                                         ANNEX A

                                  DEFINED TERMS

<PAGE>

                                                                     EXHIBIT A-1

REGISTERED                                                           $35,500,000
No. RA--1--1

                       SEE REVERSE FOR CERTAIN DEFINITIONS
                                                           CUSIP NO. 542391 AV 9

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A
                       1.840% ASSET-BACKED NOTE, CLASS A-1

         Long Beach Acceptance Auto Receivables Trust 2002-A, a business trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of THIRTY-FIVE MILLION, FIVE HUNDRED
THOUSAND DOLLARS payable on each Payment Date from the sources and on the terms
and conditions set forth herein and as more fully set forth in the Indenture;
provided, however, that the entire unpaid principal amount of this Class A-1
Note shall be due and payable on the August 2003 Payment Date (the

<PAGE>

"Class A-1 Final Scheduled Payment Date"). The Issuer will pay interest on this
Note at the rate per annum shown above on each Payment Date until the principal
of this Note is paid or made available for payment. Interest on this Note will
accrue for each Payment Date from and including the most recent Payment Date on
which interest has been paid to but excluding such Payment Date or, if no
interest has yet been paid, from and including August 15, 2002 (the "Interest
Period"). Interest will be computed on the basis of a 360-day year and the
actual number of days elapsed during the related Interest Period. Such principal
of and interest on this Note shall be paid in the manner specified on the
reverse hereof.

         The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

         The Class A-1 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by Financial Security Assurance
Inc. (the "Note Insurer"), pursuant to which the Note Insurer has
unconditionally guaranteed payment to the Class A-1 Noteholders of the Interest
Payment Amount and the Principal Payment Amount with respect to each Payment
Date, all as more fully set forth in the Indenture and the Sale and Servicing
Agreement.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-1-2
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer as of the date set forth
below.

Date:  August 15, 2002

                             LONG BEACH ACCEPTANCE AUTO
                             RECEIVABLES TRUST 2002-A

                             By: Wilmington Trust Company, not in its individual
                             capacity but solely as Owner Trustee

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

                                     A-1-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

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

                                      By:
                                         ---------------------------------------
                                                  Authorized Signatory

                                     A-1-4
<PAGE>
                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 1.840% Asset-Backed Notes, Class A-1 (herein called the "Class
A-1 Notes"), issued under an Indenture dated as of August 1, 2002 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture) to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
The 2.470% Asset-Backed Notes, Class A-2, the 3.175% Asset-Backed Notes, Class
A-3, the 3.983% Asset-Backed Notes, Class A-4 and the 8.500% Asset-Backed Notes,
Class B (the "Class A-2 Notes," the "Class A-3 Notes", the "Class A-4 Notes" and
the "Class B Notes", respectively, and together with the Class A-1 Notes, the
"Notes") have also been issued under the Indenture. The Notes are subject to all
terms of the Indenture and the Sale and Servicing Agreement. All terms used in
this Note that are defined in the Indenture, as supplemented or amended, shall
have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

         The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

         Principal of the Class A-1 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing September 16, 2002. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, Class A-2 Final Scheduled
Payment Date, Class A-3 Final Scheduled Payment Date, the Class A-4 Final
Scheduled Payment Date and the Class B Final Scheduled Payment Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

         The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-1-5
<PAGE>

         The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

         The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-1 Note Rate to the extent lawful.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-1-6
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

         This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-1-7
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ________________________
                 (name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                                 (2)
     ---------------------------------          --------------------------------
                                                Signature Guaranteed:

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

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

         (2) NOTE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Note in
every particular, without alteration, enlargement or any change whatsoever.

                                     A-1-8
<PAGE>

                                                                     EXHIBIT A-2

REGISTERED                                                           $75,000,000
No. RA--2--1

                       SEE REVERSE FOR CERTAIN DEFINITIONS
                                                           CUSIP NO. 542391 AW 7

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A
                       2.470% ASSET-BACKED NOTE, CLASS A-2

         Long Beach Acceptance Auto Receivables Trust 2002-A, a business trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of SEVENTY FIVE MILLION DOLLARS payable on
each Payment Date from the sources and on the terms and conditions set forth
herein and as more fully set forth in the Indenture; provided, however, that the
entire unpaid principal amount of this Class A-2 Note

<PAGE>

shall be due and payable on the September 2005 Payment Date (the "Class A-2
Final Scheduled Payment Date"). The Issuer will pay interest on this Note at the
rate per annum shown above on each Payment Date until the principal of this Note
is paid or made available for payment. Interest on this Note will accrue for
each Payment Date from and including the most recent Payment Date on which
interest has been paid to but excluding such Payment Date or, if no interest has
yet been paid, from and including August 15, 2002 (the "Interest Period").
Interest will be computed on the basis of a 360-day year consisting of twelve 30
day months. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof. Except as otherwise set forth in the
Indenture, the rights of the Class A-2 Noteholders to receive payments of
principal on each Payment Date are subordinated to the rights of the Class A-1
Noteholders to receive payments in respect of principal, if any, due on such
Payment Date.

         The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

         The Class A-2 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by Financial Security Assurance
Inc. (the "Note Insurer"), pursuant to which the Note Insurer has
unconditionally guaranteed payment to the Class A-2 Noteholders of the Interest
Payment Amount and the Principal Payment Amount with respect to each Payment
Date, all as more fully set forth in the Indenture and the Sale and Servicing
Agreement.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-2-2
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer as of the date set forth
below.

Date:  August 15, 2002

                             LONG BEACH ACCEPTANCE AUTO
                             RECEIVABLES TRUST 2002-A

                             By: Wilmington Trust Company, not in its individual
                             capacity but solely as Owner Trustee

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

                                     A-2-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

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

                                    By:
                                       ----------------------------------------
                                                Authorized Signatory

                                     A-2-4
<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 2.470% Asset-Backed Notes, Class A-2 (herein called the "Class
A-2 Notes"), issued under an Indenture dated as of August 1, 2002 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture) to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
The 1.840% Asset-Backed Notes, Class A-1, the 3.175% Asset-Backed Notes, Class
A-3, the 3.983% Asset-Backed Notes, Class A-4 and the 8.500% Asset-Backed Notes,
Class B (the "Class A-1 Notes," the "Class A-3 Notes," the "Class A-4 Notes" and
the "Class B Notes," respectively, and together with the Class A-2 Notes, the
"Notes") have also been issued under the Indenture. The Notes are subject to all
terms of the Indenture and the Sale and Servicing Agreement. All terms used in
this Note that are defined in the Indenture, as supplemented or amended, shall
have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

         The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

         Principal of the Class A-2 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing September 16, 2002. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the Class
A-4 Final Scheduled Payment Date and the Class B Final Scheduled Payment Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

         The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-2-5
<PAGE>

         The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

         The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-2 Note Rate to the extent lawful.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-2-6
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

         This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-2-7
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto_____________________
                    (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                                 (3)
     ---------------------------------          --------------------------------
                                                Signature Guaranteed:

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

------------------------------
         (3) NOTE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Note in
every particular, without alteration, enlargement or any change whatsoever.

                                     A-2-8
<PAGE>

                                                                     EXHIBIT A-3

REGISTERED                                                           $58,000,000
No. RA--3--1

                       SEE REVERSE FOR CERTAIN DEFINITIONS
                                                           CUSIP NO. 542391 AX 5

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A
                       3.175% ASSET-BACKED NOTE, CLASS A-3

         Long Beach Acceptance Auto Receivables Trust 2002-A, a business trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of FIFTY-EIGHT MILLION DOLLARS payable on
each Payment Date from the sources and on the terms and conditions set forth
herein and as more fully set forth in the Indenture; provided, however, that the
entire unpaid principal amount of this Class A-3 Note

<PAGE>

shall be due and payable on the November 2006 Payment Date (the "Class A-3 Final
Scheduled Payment Date"). The Issuer will pay interest on this Note at the rate
per annum shown above on each Payment Date until the principal of this Note is
paid or made available for payment. Interest on this Note will accrue for each
Payment Date from and including the most recent Payment Date on which interest
has been paid to but excluding such Payment Date or, if no interest has yet been
paid, from and including August 15, 2002 (the "Interest Period"). Interest will
be computed on the basis of a 360-day year consisting of twelve 30 day months.
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof. Except as otherwise set forth in the Indenture,
the rights of the Class A-3 Noteholders to receive payments of principal on each
Payment Date are subordinated to the rights of the Class A-1 Noteholders and the
Class A-2 Noteholders to receive payments in respect of principal, if any, due
on such Payment Date.

         The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

         The Class A-3 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by Financial Security Assurance
Inc. (the "Note Insurer"), pursuant to which the Note Insurer has
unconditionally guaranteed payment to the Class A-3 Noteholders of the Interest
Payment Amount and the Principal Payment Amount with respect to each Payment
Date, all as more fully set forth in the Indenture and the Sale and Servicing
Agreement.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-3-2
<PAGE>
                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be signed, manually or in facsimile, by its Authorized Officer as of the date
set forth below.

Date:  August 15, 2002

                             LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A

                             By: Wilmington Trust Company, not in its individual
                             capacity but solely as Owner Trustee

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

                                     A-3-3

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

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

                                      By:
                                         ---------------------------------------
                                                   Authorized Signatory

                                     A-3-4
<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 3.175% Asset-Backed Notes, Class A-3 (herein called the "Class
A-3 Notes"), issued under an Indenture dated as of August 1, 2002 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture) to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
The 1.840% Asset-Backed Notes, Class A-1, the 2.470% Asset-Backed Notes, Class
A-2, the 3.983% Asset-Backed Notes, Class A-4 and the 8.500% Asset-Backed Notes,
Class B (the "Class A-1 Notes," the "Class A-2 Notes," the "Class A-4 Notes" and
the "Class B Notes," respectively, and together with the Class A-3 Notes, the
"Notes") have also been issued under the Indenture. The Notes are subject to all
terms of the Indenture and the Sale and Servicing Agreement. All terms used in
this Note that are defined in the Indenture, as supplemented or amended, shall
have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

         The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

         Principal of the Class A-3 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing September 16, 2002. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the Class
A-4 Final Scheduled Payment Date and the Class B Final Scheduled Payment Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

         The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-3-5
<PAGE>

         The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

         The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-3 Note Rate to the extent lawful.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-3-6
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

         This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-3-7
<PAGE>

                                                    ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ___________________________
                     (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                                 (4)
     ---------------------------------          --------------------------------
                                                Signature Guaranteed:

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

------------------------------
         (4) NOTE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Note in
every particular, without alteration, enlargement or any change whatsoever.

                                     A-3-8
<PAGE>

                                                                     EXHIBIT A-4

REGISTERED                                                           $74,000,000
No. RA--4--1

                       SEE REVERSE FOR CERTAIN DEFINITIONS
                                                           CUSIP NO. 542391 AY 3

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A
                       3.983% ASSET-BACKED NOTE, CLASS A-4

         Long Beach Acceptance Auto Receivables Trust 2002-A, a business trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of SEVENTY-FOUR MILLION DOLLARS payable on
each Payment Date from the sources and on the terms and conditions set forth
herein and as more fully set forth in the Indenture; provided, however, that the
entire unpaid principal amount of this Class A-4 Note

                                     A-4-1
<PAGE>

shall be due and payable on the March 2009 Payment Date (the "Class A-4 Final
Scheduled Payment Date"). The Issuer will pay interest on this Note at the rate
per annum shown above on each Payment Date until the principal of this Note is
paid or made available for payment; provided, however, that if the
Certificateholder does not exercise its option to redeem the Notes on the first
Payment Date on or after the date on which the outstanding Pool Balance is less
than or equal to 10% of the Original Pool Balance, the Class A-4 Note Rate shall
on such Payment Date and each Payment Date thereafter, equal 4.483% per annum.
Interest on this Note will accrue for each Payment Date from and including the
most recent Payment Date on which interest has been paid to but excluding such
Payment Date or, if no interest has yet been paid, from and including August 15,
2002 (the "Interest Period"). Interest will be computed on the basis of a
360-day year consisting of twelve 30 day months. Such principal of and interest
on this Note shall be paid in the manner specified on the reverse hereof. Except
as otherwise set forth in the Indenture, the rights of the Class A-4 Noteholders
to receive payments of principal on each Payment Date are subordinated to the
rights of the Class A-1 Noteholders, the Class A-2 Noteholders and the Class A-3
Noteholders to receive payments in respect of principal, if any, due on such
Payment Date.

         The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

         The Class A-4 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by Financial Security Assurance
Inc. (the "Note Insurer"), pursuant to which the Note Insurer has
unconditionally guaranteed payment to the Class A-4 Noteholders of the Interest
Payment Amount and the Principal Payment Amount with respect to each Payment
Date, all as more fully set forth in the Indenture and the Sale and Servicing
Agreement.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-4-2
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer as of the date set forth
below.

Date:  August 15, 2002

                             LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A

                             By: Wilmington Trust Company, not in its individual
                             capacity but solely as Owner Trustee

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

                                     A-4-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

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

                                    By:
                                       -----------------------------------------
                                                   Authorized Signatory

                                     A-4-4
<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 3.983% Asset-Backed Notes, Class A-4 (herein called the "Class
A-4 Notes"), issued under an Indenture dated as of August 1, 2002 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture) to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
The 1.840% Asset-Backed Notes, Class A-1, the 2.470% Asset-Backed Notes, Class
A-2 Notes, the 3.175% Asset-Backed Notes, Class A-3 Notes and the 8.500%
Asset-Backed Notes, Class B (the "Class A-1 Notes", the "Class A-2 Notes", the
"Class A-3 Notes", and the "Class B Notes", respectively, and together with the
Class A-4 Notes, the "Notes") have also been issued under the Indenture. The
Notes are subject to all terms of the Indenture and the Sale and Servicing
Agreement. All terms used in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant
to the Indenture, as so supplemented or amended.

         The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

         Principal of the Class A-4 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing September 16, 2002. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the Class
A-4 Final Scheduled Payment Date and the Class B Final Scheduled Payment Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

         The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-4-5
<PAGE>

         The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

         The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-4 Note Rate to the extent lawful.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-4-6
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

         This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-4-7
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto_________________________________
                         (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                                 (5)
     ---------------------------------          --------------------------------
                                                Signature Guaranteed:

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

------------------------------
         (5) NOTE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Note in
every particular, without alteration, enlargement or any change whatsoever.

                                     A-4-8
<PAGE>

                                                                     EXHIBIT A-5

REGISTERED                                                          $7,500,000
No. RA--B--1

                       SEE REVERSE FOR CERTAIN DEFINITIONS
                                                           CUSIP NO. 542391 AZ 0

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR THE APPLICABLE SECURITIES LAWS OF
ANY STATE. ACCORDINGLY, TRANSFER OF THIS NOTE IS SUBJECT TO CERTAIN RESTRICTIONS
SET FORTH IN SECTION 2.4 OF THE INDENTURE. BY ITS ACCEPTANCE OF THIS NOTE THE
HOLDER OF THIS NOTE IS DEEMED TO REPRESENT TO THE ISSUER AND THE INDENTURE
TRUSTEE EITHER (A) THAT IT IS A PURCHASER OF A NOTE REPRESENTED BY A DEFINITIVE
NOTE AND IS AN INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED INVESTOR" AS
DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D PROMULGATED UNDER THE
SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED INVESTOR") AND THAT IT IS ACQUIRING
THIS NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED
INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY) FOR
INVESTMENT AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, THE
PUBLIC DISTRIBUTION HEREOF OR (B) THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER"
AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR
ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT
FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS NOTE MAY BE MADE BY ANY PERSON UNLESS
EITHER (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO THE ISSUER, (II)(A)
SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE BY A PURCHASER OF A NOTE REPRESENTED
BY A DEFINITIVE NOTE TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT EXECUTES A
CERTIFICATE, SUBSTANTIALLY IN THE FORM SPECIFIED IN THE INDENTURE, TO THE EFFECT
THAT IT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACTING FOR ITS OWN

                                     A-5-1
<PAGE>

ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED INVESTORS UNLESS THE
HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY), OR (B) SO LONG AS THIS NOTE
IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, SUCH
SALE, PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY
BELIEVES AFTER DUE INQUIRY IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A), ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS
A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING MADE
IN RELIANCE ON RULE 144A, OR (III) SUCH SALE, PLEDGE OR OTHER TRANSFER IS
OTHERWISE MADE IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, IN WHICH CASE (A) THE INDENTURE TRUSTEE SHALL REQUIRE THAT BOTH
THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO THE
INDENTURE TRUSTEE AND THE ISSUER IN WRITING THE FACTS SURROUNDING SUCH TRANSFER,
WHICH CERTIFICATION SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE INDENTURE
TRUSTEE AND THE ISSUER, AND (B) THE INDENTURE TRUSTEE MAY REQUIRE A WRITTEN
OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF THE ISSUER OR THE
INDENTURE TRUSTEE) SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE TO THE
EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT. NO SALE, PLEDGE
OR OTHER TRANSFER MAY BE MADE TO ANY ONE PERSON FOR NOTES WITH A FACE AMOUNT OF
LESS THAN $100,000 AND, IN THE CASE OF ANY PERSON ACTING ON BEHALF OF ONE OR
MORE THIRD PARTIES (OTHER THAN A BANK (AS DEFINED IN SECTION 3(A)(2) OF THE
SECURITIES ACT) ACTING IN ITS FIDUCIARY CAPACITY), FOR NOTES WITH A FACE AMOUNT
OF LESS THAN $100,000, FOR EACH SUCH THIRD PARTY.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR INVESTING THE
ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION 3(3) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS
SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN" (AS DEFINED IN
SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE. EACH TRANSFEREE OF A
BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

                                     A-5-2
<PAGE>

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A
                        8.500% ASSET-BACKED NOTE, CLASS B

         Long Beach Acceptance Auto Receivables Trust 2002-A, a business trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of SEVEN MILLION FIVE HUNDRED THOUSAND
DOLLARS payable on each Payment Date from the sources and on the terms and
conditions set forth herein and as more fully set forth in the Indenture;
provided, however, that the entire unpaid principal amount of this Class B Note
shall be due and payable on the March 2009 Payment Date (the "Class B Final
Scheduled Payment Date"). The Issuer will pay interest on this Note at the rate
per annum shown above on each Payment Date until the principal of this Note is
paid or made available for payment. Interest on this Note will accrue for each
Payment Date from and including the most recent Payment Date on which interest
has been paid to but excluding such Payment Date or, if no interest has yet been
paid, from and including August 15, 2002 (the "Interest Period"). Interest will
be computed on the basis of a 360-day year consisting of twelve 30 day months.
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof. Except as otherwise set forth in the Indenture
and the Sale and Servicing Agreement with respect to application of the Senior
Strip, the rights of the Class B Noteholders to receive payments of interest and
principal on each Payment Date are subordinated to the rights of the Class A-1
Noteholders, the Class A-2 Noteholders, the Class A-3 Noteholders and the Class
A-4 Noteholders to receive payments in respect of interest and principal, if
any, due on such Payment Date and, with respect to payments of principal, to the
funding of the Spread Account to its Requisite Amount and the funding of the
Class B Reserve Account to the Specified Class B Reserve Account Balance.

         The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                     A-5-3
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer as of the date set forth
below.

Date:  August 15, 2002

                             LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2002-A

                             By: Wilmington Trust Company, not in its individual
                             capacity but solely as Owner Trustee

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

                                     A-5-4
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Notes designated above and referred to in
the within-mentioned Indenture.

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

                                    By:
                                       -----------------------------------------
                                                 Authorized Signatory

                                     A-5-5
<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 8.500% Asset-Backed Notes, Class B (herein called the "Class B
Notes"), issued under an Indenture dated as of August 1, 2002 (such indenture,
as supplemented or amended, is herein called the "Indenture"), between the
Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture Trustee",
which term includes any successor Indenture Trustee under the Indenture) to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Notes. The 1.840%
Asset-Backed Notes, Class A-1, the 2.470% Asset-Backed Notes, Class A-2 Notes,
the 3.175% Asset-Backed Notes, Class A-3 Notes and the 3.983% Asset-Backed
Notes, Class A-4 (the "Class A-1 Notes", the "Class A-2 Notes", the "Class A-3
Notes" and the "Class A-4 Notes", respectively, and together with the Class B
Notes, the "Notes") have also been issued under the Indenture. The Notes are
subject to all terms of the Indenture and the Sale and Servicing Agreement. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended.

         The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

         Principal of the Class B Notes will be payable on each Payment Date in
an amount equal to funds released from the Class B Reserve Account, as more
fully described in the Sale and Servicing Agreement. "Payment Date" means the
fifteenth day of each month, or, if any such date is not a Business Day, the
next Business Day, commencing September 16, 2002. The term "Payment Date," shall
be deemed to include the Class A-1 Final Scheduled Payment Date, the Class A-2
Final Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the
Class A-4 Final Scheduled Payment Date and the Class B Final Scheduled Payment
Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

         The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-5-6
<PAGE>

         The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

         The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

         The Issuer shall pay interest on overdue installments of interest at
the Class B Note Rate to the extent lawful.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-5-7
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

         This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

                                     A-5-8
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto _________________________________
                          (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated                                 (6)
     ---------------------------------          --------------------------------
                                                Signature Guaranteed:

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

------------------------------
         (6) NOTE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Note in
every particular, without alteration, enlargement or any change whatsoever.

                                     A-5-9
<PAGE>

                                                                       EXHIBIT B

                          FORM OF DEPOSITORY AGREEMENT

<PAGE>

                                                                     EXHIBIT C-1

                     FORM OF "QUALIFIED INSTITUTIONAL BUYER"
                            TRANSFEREE'S CERTIFICATE

                                     [date]

Long Beach Acceptance Auto Receivables Trust 2002-A
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington Delaware 19890-0001
Attention:        Corporate Trust Administration

JPMORGAN CHASE BANK
450 West 33rd Street, 14th floor
New York, New York 10001
Attention:   Capital Markets Fiduciary Services

             Re:   Long Beach Acceptance Auto Receivables Trust 2002-A
                   Asset-Backed Notes, Class B
                   ----------------------------

Dear Sirs:

         In connection with the proposed purchase by the buyer listed below (the
"Buyer") of the above-referenced Notes (the "Notes") issued pursuant to the
Indenture dated as of August 1, 2002 (the "Indenture") between Long Beach
Acceptance Auto Receivables Trust 2002-A, as Issuer (the "Issuer"), and JPMORGAN
CHASE BANK, as indenture trustee (the "Indenture Trustee"), relating to the Long
Beach Acceptance Auto Receivables Trust 2002-A Asset-Backed Notes, the Buyer
advises you as follows: (i) the Buyer is a "qualified institutional buyer" as
that term is defined in Rule 144A under the Securities Act of 1933, as amended
(the "1933 Act") and is acquiring beneficial ownership of the Notes for its own
account or for the account of not more than __ persons, each of which is a
"qualified institutional buyer"; and (ii) the Buyer satisfies the requirements
of paragraph (a)(2)(ii) of Rule 3a-7 under the Investment Company Act of 1940,
as amended (the "1940 Act"). In addition to the foregoing, you may rely on the
information provided in Annex 1 or 2, as applicable, attached hereto and
incorporated herein.

         The Buyer understands that the Notes have not been registered under the
1933 Act or the securities laws of any state. The Buyer acknowledges that it has
independently conducted such investigation and evaluation of the merits and the
risks involved in an investment in the Notes and has received such information
(whether from the Issuer, the Transferor, the Servicer, the transferor from
which it proposes to purchase Notes, or from any other source) as the Buyer has
deemed necessary and advisable in order to make its investment decision. The
Buyer has had any questions arising from such investigation and evaluation
answered by the Issuer to the satisfaction of the Buyer. The Buyer is a
sophisticated institutional investor, having

<PAGE>

such knowledge and experience in financial and business matters generally, and
with respect to asset-backed securities and investments in "non-prime"
automobile loans specifically, that it is capable of independently evaluating
the merits and risks of investment in the Notes. In the normal course of its
business, the Buyer invests in or purchases securities similar to the Notes. The
Buyer is aware that it may be required to bear the economic risk of an
investment in the Notes for an indefinite period of time, and it is able to bear
such risk for an indefinite period.

                                          Very truly yours,

                                          [BUYER]

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

                                          Taxpayer ID:
                                                      --------------------------

                                          Name in which
                                          Note is to be
                                          Registered:
                                                     ---------------------------

                                          Address for Notices:
                                                              ------------------

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

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

                                          Payment Instructions:

                                     C-1-2
<PAGE>

                                                          ANNEX 1 TO EXHIBIT C-1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

             [For Buyers Other Than Registered Investment Companies]

         The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

         (a) As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         (b) In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested
on a discretionary basis $_____________(7) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

         ___ Corporation, etc. The Buyer is a corporation (other than a bank,
         savings and loan association or similar institution), or similar
         business trust, partnership, or charitable organization described in
         Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

         ___ Bank. The Buyer (a) is a national bank or banking institution
         organized under the laws of any State, territory or the District of
         Columbia, the business of which is substantially confined to banking
         and is supervised by the State or territorial banking commission or
         similar official or is a foreign bank or equivalent institution, and
         (b) has an audited net worth of at least $25,000,000 as demonstrated in
         its latest annual financial statements, a copy of which is attached
         hereto.

         ___ Savings and Loan. The Buyer (a) is a savings and loan association,
         building and loan association, cooperative bank, homestead association
         or similar institution, which is supervised and examined by a State or
         Federal authority having supervision over any such institutions or is a
         foreign savings and loan association or equivalent institution and (b)
         has an audited net worth of at least $25,000,000 as demonstrated in its
         latest annual financial statements, a copy of which is attached hereto.

-------------------------
         (7) Buyer must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Buyer is a dealer, and, in that case, Buyer
must own and/or invest on a discretionary basis at least $10,000,000 in
securities.

                                     C-1-3
<PAGE>

         ___ Broker-dealer. The Buyer is a dealer registered pursuant to Section
         15 of the Securities Exchange Act of 1934.

         __ Insurance Company. The Buyer is an insurance company whose primary
         and predominant business activity is the writing of insurance or the
         reinsuring of risks underwritten by insurance companies and which is
         subject to supervision by the insurance commissioner or a similar
         official or agency of a State, territory or the District of Columbia.

         ___ State or Local Plan. The Buyer is a plan established and maintained
         by a State, its political subdivisions, or any agency or
         instrumentality of the State or its political subdivisions, for the
         benefit of its employees.

         __ ERISA Plan. The Buyer is an employee benefit plan within the meaning
         of Title I of the Employee Retirement Income Security Act of 1974.

         __ Investment Advisor. The Buyer is an investment advisor registered
         under the Investment Advisers Act of 1940.

         __ Small Business Investment Company. Buyer is a small business
         investment company licensed by the U.S. Small Business Administration
         under Section 301(c) or (d) of the Small Business Investment Act of
         1958.

         __ Business Development Company. Buyer is a business development
         company as defined in Section 202(a)(22) of the Investment Advisors Act
         of 1940.

         __ Trust Fund. The Buyer is a trust fund whose trustee is a bank or
         trust company and whose participants are exclusively State or Local
         Plans or ERISA Plans as defined above, and no participant of the Buyer
         is an individual retirement account or an H.R. 10 (Keogh) plan.

         (c) The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

         (d) For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting

                                     C-1-4
<PAGE>

principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

         (e) The Buyer acknowledges that it is familiar with Rule 144A and
understands that the transferor to it and other parties related to the Notes are
relying and will continue to rely on the statements made herein because one or
more sales to the Buyer may be in reliance on Rule 144A.

         (f) Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of Rule 144A Securities will constitute a reaffirmation of
this certification as of the date of such purchase. In addition, if the Buyer is
a Bank or Savings and Loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                           -------------------------------------
                                                     Print Name of Buyer

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

                                           Date:
                                                --------------------------------

                                     C-1-5
<PAGE>

                                                          ANNEX 2 TO EXHIBIT C-1
                                                          ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

              [For Buyers that are Registered Investment Companies]

         The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

         (a) As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

         (b) In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used,
except (i) where the Buyer or the Buyer's Family of Investment Companies reports
its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market.

         ___The Buyer owned $________________ in securities (other than the
         excluded securities referred to below) as of the end of the Buyer's
         most recent fiscal year (such amount being calculated in accordance
         with Rule 144A).

         ___The Buyer is part of a Family of Investment Companies which owned in
         the aggregate $__________ in securities (other than the excluded
         securities referred to below) as of the end of the Buyer's most recent
         fiscal year (such amount being calculated in accordance with Rule
         144A).

         (c) The term "Family of Investment Companies" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

         (d) The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

                                     C-1-6
<PAGE>

         (e) The Buyer is familiar with Rule 144A and understands that the
parties listed in the Qualified Institutional Buyer Transferee's Certificate to
which this certification relates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer will be in
reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
own account.

         (f) Until the date of purchase of the Rule 144A Securities, the
undersigned will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                                --------------------------------
                                                Print Name of Buyer or Adviser

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

                                                IF AN ADVISER:

                                                --------------------------------
                                                Print Name of Buyer

                                                Date:
                                                     ---------------------------

                                     C-1-7
<PAGE>

                                                                     EXHIBIT C-2

             FORM OF "ACCREDITED INVESTOR" TRANSFEREE'S CERTIFICATE

                                     [date]

Long Beach Acceptance Auto Receivables Trust 2002-A
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington Delaware 19890-0001
Attention: Corporate Trust Administration

JPMORGAN CHASE BANK
450 West 33rd Street, 14th floor
New York, New York 10001

Attention:   Capital Markets Fiduciary Services

             Re:  Long Beach Acceptance Auto Receivables Trust 2002-A
                  Asset-Backed Notes, Class B
                  ---------------------------

Dear Sirs:

         In connection with the proposed purchase by the buyer listed below (the
"Buyer") of the above referenced Notes (the "Notes") issued pursuant to the
Indenture dated as of August 1, 2002 (the "Indenture") between Long Beach
Acceptance Auto Receivables Trust 2002-A, as Issuer (the "Issuer"), and JPMORGAN
CHASE BANK, as indenture trustee (the "Indenture Trustee"), relating to the Long
Beach Acceptance Auto Receivables Trust 2002-A Asset-Backed Notes, the Buyer
confirms that:

         (a) The Buyer understands that the Notes have not been registered under
     the Securities Act of 1933, as amended (the "1933 Act"), and may not be
     sold except as permitted in the following sentence. The Buyer agrees, on
     its own behalf and on behalf of any accounts for which it is acting as
     hereinafter stated, that such Notes may be resold, pledged or transferred
     only: (i) so long as such Notes are eligible for resale pursuant to Rule
     144A under the 1933 Act ("Rule 144A"), to a person who the Buyer reasonably
     believes is a "qualified institutional buyer" as defined in Rule 144A (a
     "QIB") that purchases for its own account or for the account of a QIB, to
     whom notice is given that the resale, pledge or transfer is being made in
     reliance on Rule 144A, (ii) pursuant to an exemption from registration
     under the 1933 Act provided by Rule 144 (if applicable) under the 1933 Act
     or (iii) to an institution that is an "Accredited Investor" as defined in
     Rule 501(a)(1), (2), (3) or (7) under the 1933 Act (an "Accredited
     Investor") that is acquiring the Notes for investment purposes and not for
     payment, in each case in accordance with any applicable securities laws of
     any state of the United States, and the Buyer will notify any purchaser of
     the Notes from it of the above resale restrictions. The Buyer further
     understands that in connection with any transfer of the Notes to an
     Accredited Investor by it that the Depositor or Trustee may request, and if
     so requested

<PAGE>

     the Buyer will furnish, such certificates and other information as they may
     reasonably require to confirm any such transfer with the foregoing
     restrictions.

         (b) The Buyer is an institutional investor which is an Accredited
     Investor or, if the Notes are to be purchased for one or more institutional
     accounts ("investor accounts") for which it is acting as fiduciary or agent
     (except if it is a bank as defined in Section 3(a)(2) of the 1933 Act, or a
     savings and loan association or other institution as described in Section
     3(a)(5)(A) of the 1933 Act, whether acting in its individual or in a
     fiduciary capacity), each such investor account is an institutional
     investor and an Accredited Investor on a like basis. In the normal course
     of its business, the Buyer invests in or purchases securities similar to
     the Notes.

         (c) The Buyer satisfies the requirements of paragraph (a)(2)(i) of Rule
     3a-7 of the Investment Company Act of 1940.

         (d) The Buyer acknowledges that it has independently conducted such
     investigation and evaluation of the merits and the risks involved in an
     investment in the Notes and has received such information (whether from the
     Depositor, the Servicer, the transferor from which it proposes to purchase
     Notes, or from any other source) as the Buyer has deemed necessary and
     advisable in order to make its investment decision. The Buyer has had any
     questions arising from such investigation and evaluation answered by the
     Depositor to the satisfaction of the Buyer. The Buyer is a sophisticated
     institutional investor, having such knowledge and experience in financial
     and business matters generally, and with respect to asset-backed securities
     and investments in "non-prime" automobile loans specifically, that it is
     capable of independently evaluating the merits and risks of investment in
     the Notes. In the normal course of its business, the Buyer invests in or
     purchases securities similar to the Notes. The Buyer is aware that it (or
     any investor account) may be required to bear the economic risk of an
     investment in the Notes for an indefinite period of time, and it (or such
     account) is able to bear such risk for an indefinite period.

                                          Very truly yours,

                                          [BUYER]

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

                                     C-2-2
<PAGE>

                                                                     EXHIBIT C-3

               FORM OF "REGISTERED NOTE" TRANSFEREE'S CERTIFICATE

                                     [Date]

Long Beach Acceptance Auto Receivables Trust 2002-A
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attention:  Corporate Trust Administration

JPMORGAN CHASE BANK
450 West 33rd Street, 14th floor
New York, New York 10001

Attention:  Capital Markets Fiduciary Services

            Re:  Long Beach Acceptance Auto Receivables Trust 2002-A
                 Asset-Backed Notes, Class B
                 ---------------------------

Dear Sirs:

     In connection with the proposed purchase by the buyer listed below (the
"Buyer") of Notes (the "Notes") issued pursuant to the Indenture dated as of
August 1, 2002 (the "Indenture") between Long Beach Acceptance Auto Receivables
Trust 2002-A, as Issuer (the "Issuer"), and JPMORGAN CHASE BANK, as indenture
trustee (the "Indenture Trustee"), relating to the Long Beach Acceptance Auto
Receivables Trust 2002-A Asset-Backed Notes, the Buyer confirms that it
satisfies the requirements set forth in paragraph (a)(2) of Rule 3a-7 of the
Investment Company Act of 1940, as amended.

                                             Very truly yours,

                                             [BUYER]

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

                                             Taxpayer ID:
                                                         -----------------------

                                             Name in which
                                             Note is to be
                                             Registered:
                                                        ------------------------

                                             Address for Notices:
                                                                 ---------------

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

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

                                             Payment Instructions:

<PAGE>

                                                                     EXHIBIT C-4

                        FORM OF TRANSFEROR'S CERTIFICATE

                                     [Date]

Long Beach Acceptance Auto Receivables Trust 2002-A
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington Delaware 19890-0001
Attention:   Corporate Trust Administration

JPMORGAN CHASE BANK
450 West 33rd Street, 14th floor
New York, New York 10001

Attention:   Capital Markets Fiduciary Services

             Re:  Long Beach Acceptance Auto Receivables Trust 2002-A
                  Asset-Backed Notes, Class B
                  ---------------------------

Ladies and Gentlemen:

     In connection with the disposition by the transferor listed below (the
"Transferor") of the above referenced Notes issued pursuant to the Indenture
dated as of August 1, 2002 (the "Indenture") between Long Beach Acceptance Auto
Receivables Trust 2002-A, as Issuer (the "Issuer"), and JPMORGAN CHASE BANK, as
indenture trustee (the "Indenture Trustee"), relating to the Long Beach
Acceptance Auto Receivables Trust 2002-A Asset-Backed Notes, the Transferor
certifies that:

     (a) the Transferor understands that the Notes have not been registered
under the Securities Act of 1933, as amended (the "1933 Act"), and are being
disposed of by the Transferor in a transaction that is exempt from the
registration requirements of the 1933 Act; and

     (b) the Transferor has not offered or sold any Notes to, or solicited
offers to buy any Notes from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken
any other action which would result in, a violation of Section 5 of the 1933
Act.

                                              Very truly yours,

                                              ----------------------------------
                                                     Name of Transferor

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

                                     C-4-1
<PAGE>

                                                                     EXHIBIT C-5

                    [FORM OF CERTIFICATE AS TO ERISA MATTERS]

                                     [date]

Long Beach Acceptance Auto Receivables Trust 2002-A
c/o Wilmington Trust Company, as Owner Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890-0001
Attention:  Corporate Trust Administration

JPMORGAN CHASE BANK
450 West 33rd Street, 14th Floor
New York, New York  10001
Attention:  Global Trust Services --
            Long Beach Acceptance Auto
            Receivables Trust 2002-A

       Re:  Long Beach Acceptance Auto Receivables Trust 2002-A
            Asset-Backed Notes, Class [A-1][A-2][A-3][A-4][B]
            -------------------------------------------------

Ladies and Gentlemen:

     [NAME OF OFFICER] ____________________ hereby certifies that:

     1. That he [she] is [Title of Officer] ________________ of [Name of
Transferee] ______________________________________ (the "Transferee"), a
[savings institution] [corporation] duly organized and existing under the laws
of [the State of ________] [the United States], on behalf of which he [she]
makes this affidavit.

     2. The Transferee (i) is not, and is not acting on behalf of or investing
the assets of, (a) an employee benefit plan (as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA")) that is
subject to the provisions of Title I of ERISA or (b) a plan (as defined in
Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the "Code")
that is subject to Section 4975 of the Code (each, a "Benefit Plan") or (ii)
[Class A Notes only] is entitled to exemptive relief pursuant to a Department of
Labor prohibited transaction class exemption with respect to the Transferee's
acquisition and continued holding of such Class [A-1][A-2][A-3][A-4] Note.

     3. The Transferee hereby acknowledges that under the terms of the
Indenture, dated as of August 1, 2002 (the "Indenture"), between Long Beach
Acceptance Auto Receivables Trust 2002-A (the "Issuer") and JPMORGAN CHASE BANK,
as indenture trustee (the "Indenture Trustee"), no transfer of any Class
[A-1][A-2][A-3][A-

<PAGE>

4][B] Note (as defined in the Indenture) shall be permitted to be made to any
person unless the Indenture Trustee has received a certificate from such
transferee to the effect that such transferee (A) is not a Benefit Plan and is
not acting on behalf of or investing the assets of any such Benefit Plan or (B)
[Class A Notes only] is entitled to exemptive relief pursuant to a Department of
Labor prohibited transaction class exemption with respect to such transferee's
acquisition and continued holding of such Note.

     4. The Class [A-1][A-2][A-3][A-4][B] Notes shall be registered in the name
of _________________ ___________________ [as nominee for the Transferee.]

     IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] ______________ _______________, this _____ day of
___________, _____.

                           --------------------------
                           [name of Transferee]

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

     The undersigned hereby acknowledges that it is holding and will hold the
Class [A-1][A-2][A-3][A-4][B] Notes at the exclusive direction of and as nominee
of the Investor named above.

-------------------------------------
[name of nominee]

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

                                     C-5-2

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