Document:

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                                                                   Exhibit 10.14

                                                                  EXECUTION COPY

                          CREDIT AND SECURITY AGREEMENT

                                  By and Among

                   GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.,

                                    as Lender

                    LONG BEACH ACCEPTANCE RECEIVABLES CORP.,

                                   as Borrower

                                       and

                          LONG BEACH ACCEPTANCE CORP.,

                                  as Guarantor

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

                           Dated as of August 12, 1999

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

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                                TABLE OF CONTENTS
<Table>
<Caption>
                                                                            PAGE
                                                                            ----
        <S>      <C>                                                       <C>
         1.       Definitions..................................................2
         2.       The Loan.....................................................9
         2.1.     Agreement to Lend............................................9
         2.2.     [Reserved]...................................................9
         2.3.     Promissory Note..............................................9
         2.4.     Interest....................................................10
         2.5.     Repayment of the Loan.......................................10
         2.6.     Optional Prepayments........................................10
         2.7.     Payment Procedures..........................................10
         2.8.     Indemnity...................................................11
         2.9.     Illegality; Substituted Interest Rate.......................11
         2.10.    Limited Recourse............................................12
         3.       Grant of Security Interest; Eligible Collateral.............12
         3.1.     Valid Security Interest.....................................12
         3.2.     Further Assurances..........................................13
         3.3.     Data Reporting..............................................13
         3.4.     Powers......................................................13
         3.5.     No Duty on the Part of Lender...............................14
         3.6.     Performance by Lender of Borrower's Obligations.............14
         3.7.     Limitation on Duties Regarding Preservation of Collateral...14
         3.8.     Powers Coupled with an Interest.............................14
         3.9.     Termination.................................................14
         3.10.    Segregation of Funds........................................15
         3.11.    The Spread Account..........................................15
         3.12.    Advance Rate Maintenance; Release of Excess Collateral......15
         3.13.    Valuation Model.............................................16
         3.14.    Exhibit G...................................................16
         4.       Representations and Warranties..............................17
         4.1.     Organization................................................17
         4.2.     Power and Authority.........................................17
         4.3.     Authorization of Borrowing..................................17
         4.4.     Agreement Binding...........................................17
         4.5.     Compliance with Law.........................................17
         4.6.     Consents....................................................18
         4.7.     Litigation..................................................18
         4.8.     Financial Statements........................................18
         4.9.     Other Obligations...........................................18
         4.10.    Regulation G................................................18
         4.11.    Investment Company Act......................................18
         4.12.    Chief Executive Office......................................19
         4.13.    Collateral Security.........................................19
         4.14.    Ownership of Properties.....................................19

                                       i
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         4.15.    Full Disclosure.............................................19
         4.16.    ERISA.......................................................19
         4.17.    Basic Documents.............................................20
         5.       Affirmative Covenants.......................................20
         5.1.     Notice......................................................20
         5.2.     Taxes.......................................................21
         5.3.     Separate Existence: No Commingling..........................21
         5.4.     Financing Statements........................................21
         5.5.     Books and Records; Other Information........................21
         5.6.     Payment of Fees and Expenses................................22
         5.7.     Continuity of Business and Compliance With Agreement........22
         5.8.     Financial Statements and Access to Records..................22
         5.9.     Financial Condition.........................................22
         5.10.    Litigation Matters..........................................22
         5.11.    Fulfillment of Obligations..................................23
         5.12.    Notice of Change of Chief Executive Office..................23
         5.13.    Compliance with Laws, etc...................................23
         5.14.    Year 2000 Compliance........................................23
         6.       Negative Covenants..........................................23
         6.1.     Adverse Transactions........................................24
         6.2.     Guaranties..................................................24
         6.3.     Corporate Documents.........................................24
         6.4.     Investments; Dividends......................................24
         6.5.     Loans; Capital Structure; Affiliates........................24
         6.6.     Liens.......................................................25
         6.7.     VSI Policies................................................25
         6.8.     Custodian...................................................25
         7.       Conditions Precedent........................................26
         7.1.     Conditions Precedent to Agreement...........................26
         8.       Events of Default...........................................27
         8.1.     Events of Default...........................................27
         8.2.     Remedies of Default.........................................30
         9.       Miscellaneous...............................................31
         9.1.     Payment of Expenses, Indemnity, etc.........................31
         9.2.     Set-off.....................................................33
         9.3.     Amendments..................................................33
         9.4.     Waiver; Cumulative Rights...................................33
         9.5.     Nonpetition Covenant........................................33
         9.6.     Non-affiliation.............................................34
         9.7.     Binding Effect..............................................34
         9.8.     Survival....................................................34
         9.9.     GOVERNING LAW, ETC.; WAIVER OF TRIAL BY JURY................34
         9.10.    Notice......................................................35
         9.11.    Severability................................................36

                                      ii
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         9.12.    Counterparts................................................36
         9.13.    Merger or Consolidation.....................................36
         9.14.    Subsequent Actions..........................................36
         9.15.    Assignability...............................................37
         9.16.    Certain Reimbursements......................................37

EXHIBIT A - Promissory Note..................................................A-1

EXHIBIT B - Form of LBAC Guaranty............................................B-1

EXHIBIT C - Form of AMC Guaranty.............................................C-1

EXHIBIT D - [Reserved].......................................................D-1

EXHIBIT E - Form of Opinion of Counsel.......................................E-1

EXHIBIT F - [Reserved].......................................................F-1

EXHIBIT G - Other Residual Financing Agreements..............................G-1
</Table>

                                     iii
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                         CREDIT AND SECURITY AGREEMENT

         CREDIT AND SECURITY AGREEMENT, dated as of August 12, 1999 (as amended,
supplemented or otherwise modified from time to time, this "AGREEMENT"), by and
among (i) GREENWICH CAPITAL FINANCIAL PRODUCTS, INC., a Delaware corporation
(the "LENDER"), (ii) LONG BEACH ACCEPTANCE RECEIVABLES CORP., a Delaware
corporation (the "BORROWER"), and (iii) LONG BEACH ACCEPTANCE CORP., a Delaware
corporation (the "GUARANTOR").

                                 R E C I T A L S
                                 - - - - - - - -

         WHEREAS, Borrower is a direct wholly-owned subsidiary of LBAC, which is
in the business of originating and acquiring Receivables (as defined herein);
and

         WHEREAS, simultaneously with the execution and delivery of this
Agreement, Guarantor and Borrower are entering into a securitization transaction
(the "SECURITIZATION TRANSACTION") providing for, among other things, (a) one of
Lender's affiliates to purchase certain securities issued thereunder and (b)
Borrower to retain the Certificate (as defined herein) issued thereunder; and

         WHEREAS, in order to induce Lender to enter into this Agreement,
Guarantor is willing to provide the Guarantee (as defined herein) and Ameriquest
Mortgage Company, a Delaware corporation ("AMC") is willing to provide the AMC
Guarantee (as defined herein); and

         WHEREAS, Lender is willing to provide Borrower with a secured loan in
order to induce Borrower and Guarantor to enter into the Securitization
Transaction and in consideration of the Guarantee, the AMC Guarantee, the pledge
of the Collateral (as defined herein) and on the terms and conditions set forth
herein and in the Guarantee and the AMC Guarantee; and

         WHEREAS, Borrower and Guarantor have entered into and may from time to
time enter into Other Residual Financing Agreements (as defined herein) with
Lender; and

         WHEREAS, Borrower, Guarantor and Lender have agreed to secure the Other
RF Obligations (as defined herein) with the Collateral pledged hereunder (in
addition to the collateral pledged under the Other Residual Financing
Agreements).

         NOW THEREFORE in consideration of the premises and mutual agreements
contained herein, the adequacy and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

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         1. Definitions. When used herein, the following terms shall have the
         meanings set forth below:

         "ADDITIONAL COLLATERAL RELEASE CONDITION" means, as of any date of
determination, if the Cumulative Actual Advance Rate for such date does not
exceed 75%.

         "ADVANCE RATE" means, as of any Calculation Date, the percentage
equivalent of a fraction, the numerator of which shall equal the aggregate
unpaid principal balance of the Loan, and the denominator of which shall equal
the Present Value of the Collateral, in each case measured as of such
Calculation Date. The Advance Rate shall be determined in accordance with
Section 3.12(a) (and (x) for the calculation of the Advance Rate provided in
Section 6.4, also as provided in such Section and (y) for the calculation of the
Advance Rate provided in Section 9.16 (a) and (b), also as provided in such
subsections).

         "AMC" has the meaning assigned thereto in the recitals hereto.

         "AMC GROUP" has the meaning assigned thereto in Section 3.13(b).

         "AMC GUARANTEE" means the guarantee in the form attached hereto as
EXHIBIT C provided by AMC as an inducement to Lender to provide Borrower with
the Loan, as amended, supplemented or otherwise modified from time to time.

         "AVERAGE DEFAULT RATE" means, as of any Calculation Date, the lesser of
(i) the arithmetic average of the Default Rates for the most recent three months
as reported in the related Servicer's Certificates and (ii) the arithmetic
average of the Default Rates for the most recent six months as reported in the
related Servicer's Certificates.

         "BANKRUPTCY CODE" means Title 11 of the United States Code entitled
"Bankruptcy," as amended from time to time.

         "BORROWER" has the meaning assigned thereto in the heading hereto.

         "CALCULATION DATE" has the meaning assigned thereto in Section 3.12(a).

         "CERTIFICATE" means the security evidenced by the trust certificate
issued pursuant to the Trust Agreement.

          "CLOSING DATE" means August 12, 1999.

         "CODE" means the Uniform Commercial Code as from time to time in effect
in the State of New York.

         "COLLATERAL" has the meaning assigned thereto in Section 3.1 hereof.

         "COMMONLY CONTROLLED ENTITY" means, as to any Person, an entity,
whether or not incorporated, which is under common control with such Person
within the meaning of Section

                                       2
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4001 of ERISA or is part of a group which includes such Person and which is
treated as a single employer under Section 414 of the Internal Revenue Code of
1986, as amended from time to time.

         "CUMULATIVE ACTUAL ADVANCE RATE" means, as of any date, the percentage
equivalent of a fraction, (a) the numerator of which shall equal the sum of (i)
the aggregate unpaid principal balance of the Loan hereunder on such date and
(ii) the aggregate outstanding principal balance of all loans under each Other
Residual Financing Agreement as of such date and (b) the denominator of which
shall equal the sum of (i) the Present Value of the Collateral hereunder
(determined as of the most recent date calculated in accordance with Section
3.12(a)) and (ii) the aggregate present value of all collateral securing
Borrower's obligations to Lender under and as determined in each Other Residual
Financing Agreement (determined as of the most recent date specified in each
such Other Residual Financing Agreement; PROVIDED that, for purposes of this
definition, with respect to the determination of the present value of collateral
under any Other Residual Financing Agreement during the first six months of its
effectiveness, such determination shall be deemed to equal the initial
determination of the present value of the collateral under and as determined in
such Other Residual Financing Agreement in connection with the initial borrowing
thereunder.

         "DEFAULT" means any condition, act or event, which, with notice or
lapse of time or both, would constitute an Event of Default.

         "DEFAULT RATE" means, with respect to any Collection Period, the
product of (i) twelve and (ii) a fraction, expressed as a percentage, (a) the
numerator of which is the sum of (1) the aggregate of the Principal Balances of
all Receivables that became Defaulted Receivables during such Collection Period
and (2) the aggregate of the Principal Balances (as of the related repurchase
date) of all Receivables that became Purchased Receivables during such
Collection Period that were 30 days or more delinquent (calculated based on a
360-day year consisting of twelve 30-day months) with respect to more than 5% of
a Scheduled Payment at the time of such repurchase and (b) the denominator of
which is equal to the arithmetic average of the Pool Balance as of the end of
such Collection Period and the Pool Balance as of the end of the immediately
preceding Collection Period.

         "DISCOUNT RATE" means 15% per annum.

         "ELIGIBLE SECURITIES" means (i) the Certificate, (ii) direct
obligations of, and obligations fully guaranteed as to the full and timely
payment by, the United States of America or any agency thereof, in each case
having a maturity not to exceed the maturity of the Loan and (iii) and such
other securities as are acceptable to Lender in its sole discretion.

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

         "EVENT OF DEFAULT" has the meaning assigned thereto in Section 8.1
hereof.

                                       3
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         "GOVERNMENTAL AUTHORITY" means any nation, government, or State, or any
political subdivision thereof, or any court, stock exchange, entity or agency
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

         "GUARANTEE" means the guarantee in the form attached hereto as EXHIBIT
B provided by Guarantor as an inducement to Lender to provide Borrower with the
Loan, as amended, supplemented or otherwise modified from time to time.

         "GUARANTOR" has the meaning assigned thereto in the heading hereto.

         "INTEREST Rate DETERMINATION DATE" means, with respect to the first
Remittance Date, the Closing Date, and with respect to each subsequent
Remittance Date, the day which is two (2) LIBOR Business Days prior to the
immediately preceding Remittance Date.

         "LENDER" has the meaning assigned thereto in the heading hereto.

         "LIBOR" means, with respect to the interest payment to be made on each
Remittance Date, the rate of interest per annum (rounded upwards, if necessary,
to the nearest 1/100th of 1%) for U.S. Dollar deposits with a duration of one
(1) month at or about 11:00 a.m. (London time) on the Interest Rate
Determination Date corresponding to such Remittance Date on Telerate Page 3750,
or if such page ceases to display such information, then such other page as may
replace it on that service for the purpose of display of such information (the
"TELERATE RATE"). If the Telerate Rate cannot be determined, then LIBOR shall
mean, with respect to the interest payment to be made on such Remittance Date,
the arithmetic mean of the rates of interest (rounded upwards, if necessary, to
the nearest 1/100th of 1%) offered to two prime banks in the London interbank
market (selected by Lender) of U.S. Dollar deposits with a duration of one (1)
month at or about 11:00 a.m. (London time) on the Interest Rate Determination
Date corresponding to such Remittance Date.

         "LIBOR BUSINESS DAY" means a Business Day on which trading in U.S.
Dollars is conducted by and between banks in the London interbank market.

          "LIEN" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement and any financing lease
having substantially the same economic effect as any of the foregoing).

         "LOAN" has the meaning assigned thereto in Section 2.1 hereof.

         "MAINTENANCE ADVANCE RATE" means, as of any Calculation Date, the rate
which is 5% in excess of the Target Advance Rate with respect to such date.

         "MARGIN" means 2.50% per annum.

                                       4
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         "MATURITY DATE" means the date which occurs 364 days after the date
hereof, or, if such date is not a Business Day, the next preceding Business Day;
PROVIDED that if, prior to such date, the Indenture is terminated pursuant to
Section 4.1 thereof or the Certificateholder exercises its option to redeem the
Notes issued pursuant to the Indenture as provided in Section 10.1 of the
Indenture, the Maturity Date shall be the date of such termination or purchase,
as the case may be; and PROVIDED, FURTHER, that the Maturity Date may be
extended upon the written consent of Lender, Borrower and Guarantor, and
thereafter the Maturity Date shall be the Maturity Date as so extended.

         "MONTHLY RECOVERY RATE" means, with respect to any Collection Period, a
fraction, the numerator of which shall equal the sum of all Liquidation Proceeds
and Recoveries for such Collection Period, and the denominator of which shall
equal the sum of the principal balances of all Receivables which were actually
liquidated during such Collection Period, in each case as reported in the
related Servicer's Certificate.

         "MULTIEMPLOYER PLAN" means a Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

         "97-1 AGREEMENT" has the meaning assigned thereto in clause (i) of the
definition of Other Residual Financing Agreements.

         "97-2 AGREEMENT" has the meaning assigned thereto in clause (ii) of the
definition of Other Residual Financing Agreements.

         "98-1 AGREEMENT" has the meaning assigned thereto in clause (iii) of
the definition of Other Residual Financing Agreements.

         "98-2 AGREEMENT" has the meaning assigned thereto in clause (iv) of the
definition of Other Residual Financing Agreements.

         "OBLIGATIONS" mean (i) the unpaid principal of and premiums, if any,
and interest (including interest accruing at the then applicable rate provided
in this Agreement after the maturity of the Loan and interest accruing at the
then applicable rate provided in this Agreement after the filing of any petition
in bankruptcy, or the commencement of any insolvency, reorganization or like
proceedings, relating to Borrower or Guarantor whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) on the
Loan, when and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise and (ii) all other obligations and
liabilities of every nature of Borrower or Guarantor from time to time owing to
Lender, in each case whether direct or indirect, absolute or contingent, due or
to become due, or now existing or hereafter incurred (including monetary
obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), to the extent such obligations and liabilities
arise under, out of, or in connection with, this Agreement or the Guarantee or
under any other document made, delivered or given in connection with any of the
foregoing, in each case whether on account of principal, premium, if any,
interest, fees, indemnities, costs,

                                       5
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expenses or otherwise (including all fees and disbursements of counsel to
Lender) that are required to be paid by Borrower or Guarantor pursuant to the
terms of this Agreement or the Guarantee.

         "OMNIBUS AMENDMENT AGREEMENT" means the Omnibus Amendment Agreement
dated as of March 31, 1999 among Borrower, as borrower, Guarantor, as guarantor,
and Lender, as lender.

         "OTHER RESIDUAL FINANCING AGREEMENTS" means, collectively, (i) the
Credit and Security Agreement dated as of March 31, 1997 by and among the
Lender, as lender, Borrower, as borrower, and Guarantor, as guarantor, as
amended pursuant to Amendment No. 1 thereto dated as of January 30, 1998, as
further amended by the Omnibus Amendment Agreement dated as of March 31, 1999,
and as otherwise may be amended, supplemented or otherwise modified from time to
time pursuant to the terms thereof (as so amended, the "97-1 AGREEMENT"), (ii)
the Credit and Security Agreement dated as of August 29, 1997 by and among the
Lender, as lender, Borrower, as borrower, and Guarantor, as guarantor, as
amended pursuant to Amendment No. 1 thereto, dated as of January 30, 1998, as
further amended by the Omnibus Amendment Agreement dated as of March 31, 1999,
and as otherwise may be amended, supplemented or otherwise modified from time to
time pursuant to the terms thereof (as so amended, the "97-2 AGREEMENT"), (iii)
the Credit and Security Agreement dated as of January 30, 1998 by and among the
Lender, as lender, Borrower, as borrower, and Guarantor, as guarantor, as
amended pursuant to the Omnibus Amendment Agreement dated as of March 31, 1999,
and as otherwise may be amended, supplemented or otherwise modified from time to
time pursuant to the terms thereof (as so amended, the "98-1 AGREEMENT"), (iv)
the Credit and Security Agreement dated as of November 25, 1998 by and among the
Lender, as lender, Borrower, as borrower, and Guarantor, as guarantor, as
amended pursuant to the Omnibus Amendment Agreement dated as of March 31, 1999,
and as otherwise may be amended, supplemented or otherwise modified from time to
time pursuant to the terms thereof (as so amended, the "98-2 AGREEMENT"), and
(v) each other credit and security agreement or other similar agreement among
the Lender and Borrower secured by one or more certificates, excess cash flow
certificates or other residual interests in securitizations identified on
EXHIBIT G hereto (as such EXHIBIT G may be amended or supplemented from time to
time in accordance with Section 3.14 hereof), as each such other agreement may
be amended, supplemented or otherwise modified from time to time pursuant to the
terms thereof.

         "OTHER RF AMENDMENTS" means, collectively, the Omnibus Amendment
Agreement and Amendments No. 1 to the credit and security agreements referred to
in clauses (i) and (ii) of the definition of Other RF Agreements.

         "OTHER RF EVENT OF DEFAULT" means the occurrence of any Event of
Default under and as defined in any Other Residual Financing Agreement (after
giving effect to any grace or cure period applicable thereto).

                                       6
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         "OTHER RF OBLIGATIONS" means all obligations and liabilities of every
nature of Borrower or Guarantor from time to time owing to Lender, in each case
whether direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred (including monetary obligations incurred during
the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding), to
the extent such obligations and liabilities arise under, out of, or in
connection with, any Other Residual Financing Agreement, any guarantees related
thereto or any other document made, delivered or given in connection therewith,
in each case whether on account of principal, premium, if any, interest, fees,
indemnities, costs, expenses or otherwise (including all fees and disbursements
of counsel to Lender).

         "PERSON" means an individual, partnership, limited liability company,
corporation, business trust, joint venture or other entity of whatever nature.

         "PLAN" means any Person that is (i) an "employee benefit plan" (as
defined in Section 3(3) of ERISA) that is subject to the provisions of Title I
of ERISA, (ii) a "plan" (as defined in Section 4975(e)(1) of the Code) that is
subject to Section 4975 of the Code or (iii) any entity whose underlying assets
include assets of a plan described in (i) or (ii) above by reason of such plan's
investment in the entity.

         "PLEDGED SECURITIES" means Eligible Securities pledged and held as
Collateral hereunder pursuant to Section 3.1.

         "PREPAYMENT RATE" means, as of any Calculation Date, the cumulative ABS
rate (calculated according to the Uniform Practices for the Clearance and
Settlement of Mortgage-Backed Securities and Other Related Securities of the
Public Securities Association) for the most recent three months, calculated
using the Principal Balance, APR, original term to maturity and remaining term
to maturity of the Receivables as reported in the related Servicer's
Certificates.

         "PRESENT VALUE OF THE COLLATERAL" means, as of any Calculation Date, in
the case of the Certificate, the then current present value thereof, determined
based upon the Valuation Rates (as modified by the Valuation Model) and
calculated in accordance with Section 3.12(a), and in all other cases, the then
current market value of the Collateral.

         "PRIME RATE" means the prime rate (or if a range is given, the average
prime rates) listed under "Money Rates" in THE WALL STREET JOURNAL for such date
or, if THE WALL STREET JOURNAL is not published on such date, then in THE WALL
STREET JOURNAL most recently published.

         "PROCEEDS" means all "proceeds" as defined in Section 9-306(1) of the
Uniform Commercial Code as in effect in the State of New York and, in any event,
in connection with the Collateral shall include without limitation, all
collections, distributions or other income from the Pledged Securities.

         "PROMISSORY NOTE" has the meaning assigned thereto in Section 2.3(a)
hereof.

                                       7
<Page>

         "PURCHASE AGREEMENT" means the Purchase Agreement, dated as of August
1, 1999, between LBAC and Borrower, as amended, supplemented or otherwise
modified from time to time.

         "RECOURSE PROPERTY" has the meaning assigned thereto in Section 2.10.

         "RECOVERY RATE" means, as of any Calculation Date, the arithmetic
average of the Monthly Recovery Rates for the most recent three months.

         "REMITTANCE DATE" means the 19th day of each month or, if such day is
not a Business Day, the immediately succeeding Business Day, commencing
September 20, 1999.

         "REQUIREMENT OF LAW" means, as to any Person, any law, statute, rule,
treaty, regulation, or determination of an arbitrator, court or other
Governmental Authority, in each case applicable to or binding upon such Person
or any of its properties or to which any such Person or any of its properties
may be bound or affected.

         "RESPONSIBLE OFFICER" means the president, chief executive officer,
chief financial officer, any executive vice president, secretary, vice
president-finance, comptroller or treasurer of Borrower, Guarantor or AMC, as
applicable.

         "SALE AND SERVICING AGREEMENT" means the Sale and Servicing Agreement,
dated as of August 1, 1999, among the Trust, as issuer, LBAC, as originator of
the receivables and servicer, Borrower, as transferor, and The Chase Manhattan
Bank, as indenture trustee, back-up servicer, custodian and trust collateral
agent, as amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

         "SECURITIZATION TRANSACTION" has the meaning assigned thereto in the
recitals hereto.

         "SECURITY AGREEMENT" means the Security Agreement dated as of August
12, 1999 made by Long Beach Acceptance Corp., as Pledgor, in favor of Greenwich
Capital Financial Products, Inc., as Pledgee, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof.

         "SERIES SUPPLEMENT" has the meaning assigned thereto in the Spread
Account Agreement.

         "SPREAD ACCOUNT AGREEMENT" means the Master Spread Account Agreement
dated as of August 1, 1999, among Borrower, the Certificate Insurer, the
Indenture Trustee and the Collateral Agent, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof.

         "TARGET ADVANCE RATE" means, as of any Calculation Date, 60%.

         "TRUST" has the meaning assigned thereto in the Trust Agreement.

                                       8
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         "TRUST AGREEMENT" means the Amended and Restated Trust Agreement dated
as of August 1, 1999, between Borrower, as transferor, and Wilmingtron Trust
Company, as owner trustee, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof.

         "VALUATION MODEL" means a proprietary cash flow valuation model in
computer spread sheet form to be used by Lender in calculating the Present Value
of the Collateral and making related calculations on each Calculation Date.

         "VALUATION RATES" means, collectively, the Prepayment Rate, the Average
Default Rate, the Recovery Rate and the Discount Rate.

         "VSI POLICY" has the meaning assigned thereto in Annex A to the Sale
and Servicing Agreement, without giving effect to the proviso of such
definition.

         "WAREHOUSE LENDING AGREEMENT" means the Warehouse Lending Agreement
dated as of January 30, 1998 between Long Beach Acceptance Corp., as Borrower,
and Greenwich Capital Financial Products, Inc., as Lender, as amended by the
Renewal and Amendment Agreement dated as of January 29, 1999, and as otherwise
may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

         "WAREHOUSE OBLIGATIONS" means the Obligations (as defined in the
Warehouse Lending Agreement) under the Warehouse Lending Agreement.

         Capitalized terms used but not defined herein shall have the meanings
assigned thereto in Annex A to the Sale and Servicing Agreement.

         2. The Loan.

         2.1. AGREEMENT TO LEND. Subject to the terms and conditions of this
Agreement, Lender agrees to lend to Borrower on the Closing Date, an aggregate
principal amount of $5,049,482 (FIVE MILLION FORTY-NINE THOUSAND FOUR HUNDRED
EIGHTY-TWO DOLLARS) (the "LOAN"). The proceeds of the Loan shall be used by
Borrower to (a) make the initial deposits required to be made to the Spread
Account pursuant to the Spread Account Agreement and to the Class B Reserve
Account pursuant to the Sale and Servicing Agreement, and (b) prepay a portion
of the Other RF Obligations described in clause (ii) of the definition of "Other
Residual Financing Agreements" herein, as applicable.

         2.2. [Reserved]

         2.3. PROMISSORY NOTE. (a) Borrower's obligation to repay the Loan
extended pursuant hereto and interest thereon shall be evidenced by a single
promissory note of Borrower payable to the order of Lender, substantially in the
form of EXHIBIT A hereto (as amended, supplemented or otherwise modified from
time to time, the "PROMISSORY NOTE").

                                       9
<Page>

         (b) The date and amount of the Loan by Lender and the date and amount
of each payment of principal made by Borrower shall be evidenced by entries made
by Lender in its books and records kept by it in the normal course of its
business. Borrower agrees and acknowledges that such books and records of Lender
documenting actual amounts received from Borrower shall constitute PRIMA FACIE
evidence of Borrower's indebtedness outstanding hereunder.

         2.4. INTEREST. (a) Borrower agrees to pay to Lender interest on the
unpaid principal amount of the Loan from and including the date the Loan is
extended to but not including the date on which the Loan is paid in full.
Interest shall accrue on an adjustable basis at a rate per annum equal to LIBOR
plus the Margin. LIBOR with respect to the interest payment to be made on each
Remittance Date shall be equal to LIBOR as determined on the related Interest
Rate Determination Date. Accrued interest shall be payable in arrears on each
Remittance Date, and on the date of repayment in full of the Loan.

         (b) If Borrower shall fail to pay when due (whether at stated maturity,
by acceleration or otherwise) any principal, interest or other Obligation due
and owing to Lender under this Agreement or the Promissory Note, and such
failure to pay shall constitute an Event of Default, Borrower shall pay to
Lender on demand such principal, interest or other Obligation together with
interest on such principal, interest (to the extent permitted by applicable law)
or other Obligation in default from and including the date such payment became
due until payment thereof in full (after as well as before judgment) at a rate
per annum equal to LIBOR plus five (5) percent per annum.

         (c) If, by the terms of this Agreement or the Promissory Note, Borrower
at any time is required or obligated to pay interest at a rate in excess of the
maximum rate permitted by applicable law, the rate of interest shall be deemed
to be immediately reduced to such maximum rate and the portion of all prior
interest payments in excess of such maximum rate shall be applied and shall be
deemed to have been payments made in reduction of the principal amount due
hereunder and under the Promissory Note.

         (d) All interest payable hereunder shall be computed based on actual
number of days elapsed in a year of 360 days.

         2.5. REPAYMENT OF THE LOAN. Subject to Section 8, (a) the outstanding
balance of the Loan shall be repaid in full on the Maturity Date, together with
accrued but unpaid interest thereon and (b) pursuant to the agreement described
in Section 2.7(b), Borrower shall cause the Trust Collateral Agent to remit
directly to Lender all distributions payable under the Sale and Servicing
Agreement and the Spread Account Agreement to the Certificateholder until such
time as the Loan and all other Obligations of Borrower to Lender hereunder are
paid in full.

         2.6. OPTIONAL PREPAYMENTS. Borrower may at any time and from time to
time upon two (2) Business Days' prior written notice to Lender prepay any Loan
in whole or in part, without premium, together with accrued interest to the date
of such prepayment on the amount prepaid. Any amounts prepaid by Borrower
hereunder may not be reborrowed.

                                      10
<Page>

         2.7. PAYMENT PROCEDURES. (a) Borrower agrees and acknowledges that
Borrower will, immediately upon an Event of Default or an Other RF Event of
Default (i) re-register any securities (other than the Certificate) delivered as
Collateral hereunder into Lender's name and (ii) subject to Section 3.7 of the
Trust Agreement, upon the request of Lender, re-register the Certificate in the
name of a Bankruptcy Remote Entity designated by Lender.

         (b) On or prior to the Closing Date, Borrower will provide Trust
Collateral Agent under the Sale and Servicing Agreement with a notice providing
for, among other things, all remittances on the Certificate to be paid to Lender
to the full extent of Borrower's Obligations to Lender hereunder and Borrower's
Other RF Obligations to Lender under the Other Residual Financing Agreements,
which notice to Trust Collateral Agent will be irrevocable for so long as any of
the Obligations or Other RF Obligations remain outstanding (unless otherwise
consented to in writing by Lender). All amounts received in respect of the
Certificate or other Collateral will be applied first to satisfy the Obligations
and then to satisfy the Other RF Obligations. Any amounts received by Lender in
excess of the Obligations and Other RF Obligations due and owing to Lender shall
be remitted by Lender to Borrower.

         (c) All payments to Lender hereunder or under the Promissory Note shall
be made in immediately available funds, and free and clear of and without
deduction for any taxes, levies, duties, charges, counterclaims, set-offs, fees
or withholdings of any nature hereafter imposed, assessed or collected, not
later than the due date for such payment through the Federal Reserve Fedwire
System for credit to the account of Lender (Account No. 140095961 at Chase
Manhattan Bank, ABA No. 021000021, or such other account or accounts as Lender
shall specify to Borrower in writing no later than one Business Day prior to the
related due date).

         (d) Any payments made hereunder shall be applied first against costs
and expenses due hereunder pursuant to Section 9.1; then against default
interest, if any; then against interest due on the Loan; and thereafter against
the unpaid principal of the Loan.

         2.8. INDEMNITY. Borrower agrees to indemnify Lender and to hold it
harmless from any cost, loss or expense which Lender may sustain or incur as a
consequence of any acceleration of the maturity of any Loan by Lender in
accordance with the terms of this Agreement, including, but not limited to, any
cost, loss or expense arising in liquidating the Loan and from interest or fees
payable by Lender to lenders of funds obtained by it in order to maintain the
Loan hereunder. In the event Borrower is required to make any payment pursuant
to this Section 2.8, Lender shall provide to Borrower in writing the basis upon
which such charges were calculated in reasonable detail.

         2.9. ILLEGALITY; SUBSTITUTED INTEREST RATE Notwithstanding any other
provisions herein, (a) if any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for Lender to make
or maintain the Loan at LIBOR as contemplated by this Agreement, or (b) in the
event that Lender shall have determined (which determination shall be conclusive
and binding upon Borrower) that by reason of circumstances affecting the LIBOR
interbank market either adequate and reasonable means do not exist for
ascertaining LIBOR, (x)

                                      11
<Page>

the obligation of Lender to make or maintain the Loan at LIBOR shall forthwith
be suspended and Lender shall promptly notify Borrower thereof (by telephone
confirmed in writing) and (y) the Loan shall, from and including the next
Remittance Date, or at such earlier date as may be required by law, until
payment in full thereof, bear interest at the rate per annum equal to the
greater of the Prime Rate and the rate of interest (including the Margin) in
effect on the date immediately preceding the date any event described in clause
(a) or (b) occurred (calculated on the basis of the actual number of days
elapsed in a year of 360 days). If any such conversion of LIBOR to the Prime
Rate is made on a day which is not a Remittance Date, Borrower shall pay to
Lender such amounts, if any, as may be required to compensate Lender for any
cost, loss or expense which Lender may incur as a consequence of such conversion
on a day which is not a Remittance Date, including any interest or fees payable
by Lender to lenders of funds obtained by it in order to maintain the Loan. If
subsequent to such suspension of the obligation of Lender to make or maintain
the Loan at LIBOR it becomes lawful for Lender to make or maintain the Loan at
LIBOR, or the circumstances described in clause (b) above no longer exist,
Lender shall so notify Borrower and the LIBOR-based rate on the Loan shall be
reinstated effective as of the date it becomes lawful for Lender to make or
maintain the Loan at LIBOR, or the circumstances described in clause (b) above
no longer exist.

         2.10. LIMITED RECOURSE. The Obligations of Borrower hereunder shall be
limited in recourse to the property and assets of Borrower which Borrower
pledges on the date hereof, or may hereinafter from time to time pledge, as
Collateral pursuant to the terms of this Agreement (the "RECOURSE PROPERTY"). To
the extent that the Recourse Property is insufficient to satisfy the Obligations
of Borrower hereunder, Lender shall have no claim against Borrower or any
property or assets of Borrower that are not on the date hereof or have not been,
as of the applicable date, so pledged. Notwithstanding the foregoing, however,
the Obligations of the Guarantor hereunder and under the Guarantee shall be
fully recourse to Guarantor and all property and assets of Guarantor, whether
now owned or hereinafter acquired, and Guarantor shall remain liable for all
Obligations of Borrower hereunder pursuant to the terms of the Guarantee.

         3. Grant of Security Interest; Eligible Collateral.

         3.1. VALID SECURITY INTEREST. As security for the prompt and complete
payment when due (whether at the Maturity Date, by acceleration or otherwise) of
the Obligations, Other RF Obligations and Warehouse Obligations, Borrower hereby
pledges, assigns and transfers to Lender and its successors, endorsees,
transferees and assigns and hereby grants to Lender and its successors,
endorsees, transferees and assigns a continuing, first priority security
interest in all of Borrower's right, title and interest in the following
property, whether now owned by Borrower or hereafter acquired and whether now
existing or hereafter coming into existence (all being collectively referred to
as "COLLATERAL"):

         (a) the Certificate delivered to and held by Lender or its designee or
agent and all rights to receive payments payable under the Sale and Servicing
Agreement to the Certificateholder pursuant to the terms and provisions of the
Sale and Servicing Agreement and the Spread Account Agreement;

                                      12
<Page>

         (b) any other cash, Eligible Securities, or other property acceptable
to Lender in its sole discretion and transferred or otherwise delivered to
Lender or its agent from time to time and designated by Borrower as Collateral
hereunder; and

         (c) all Proceeds of any of the foregoing, including, in any event, all
causes of action, claims and warranties now or hereafter held by Borrower or its
designee or agent in respect of any of the foregoing, all shares, securities,
moneys (including cash) or property representing a current dividend or
distribution on any of the Pledged Securities or resulting from a split-up,
revision, reclassification, or other like change of any of the Pledged
Securities or otherwise received in exchange therefor, all current income and
distributions with respect to any of the foregoing and, to the extent related to
any of the foregoing, all books, correspondence, files, records and other papers
necessary to protect Lender's security interest hereunder.

         3.2. FURTHER ASSURANCES. At any time and from time to time, upon the
written request of Lender and at the sole expense of Borrower, Borrower will
promptly and duly execute and deliver such further instruments and documents and
take any and all such further action required by Lender in order to ensure
Lender has a valid, first priority, perfected security interest in the
Collateral and for the purpose of preserving the full benefits of this Agreement
and of the rights and powers herein granted, including, without limitation,
filing any financing or continuation statements under the Uniform Commercial
Code in effect in any jurisdiction with respect to the Liens created hereby,
assigning or endorsing Collateral in blank or to Lender or its designee and
delivering Collateral to Lender or Lender's Custodian. Borrower also hereby
authorizes Lender to file any such financing or continuation statement in
respect of the Collateral without the signature of Borrower to the extent
permitted by applicable law. A carbon, photographic or other reproduction of
this Agreement shall be sufficient as a financing statement for filing in any
jurisdiction.

         3.3. DATA REPORTING. Borrower and Guarantor will deliver or cause to be
delivered to Lender: (a) copies of all reports, statements and certificates
required to be delivered by Borrower or Guarantor to Lender or any other party
pursuant to the Basic Documents; and prompt notice of: (i) any material adverse
developments with respect to pending or future litigation involving Borrower or
Guarantor, if any, upon obtaining knowledge thereof; (ii) any other developments
which might materially and adversely affect the financial condition of Borrower
or Guarantor, upon obtaining knowledge thereof; (iii) the acceleration of any
debt obligation or the termination of any credit facility of Borrower or
Guarantor, if any, and (iv) the amount and maturity of any debt assumed after
the date hereof, if any, by Borrower or Guarantor.

         3.4. POWERS. (a) Borrower hereby irrevocably constitutes and appoints
Lender and any officer or agent of Lender with full power of substitution, as
its true and lawful attorney-in-fact with full irrevocable power and authority
in the place and stead of Borrower and in the name

                                      13
<Page>

of Borrower or in its own name, from time to time in Lender's discretion, for
the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which
may be reasonably necessary to accomplish the purposes of this Agreement.

         (b) Borrower also authorizes Lender, from time to time if an Event of
Default or Other RF Event of Default shall have occurred and be continuing, to
execute and/or file and record, in connection with any sale provided for herein,
any endorsements, assignments or other instruments of conveyance or transfer
with respect to the Collateral.

         3.5. NO DUTY ON THE PART OF LENDER. The powers conferred on Lender and
hereunder are solely to protect Lender's interests in the Collateral and shall
not impose any duty upon Lender to exercise any such powers. Lender shall be
accountable only for amounts that it actually receives as a result of the
exercise of such powers, and neither it nor any of its officers, directors,
employees, affiliates, agents or successors shall be responsible to Borrower for
any act or failure to act hereunder, except for their gross negligence or
willful misconduct.

         3.6. PERFORMANCE BY LENDER OF BORROWER'S OBLIGATIONS. If Borrower fails
to perform or comply with any of its agreements contained herein and Lender, as
provided for by the terms of this Agreement, shall perform or comply, or
otherwise cause performance or compliance, with such agreements, the reasonable
expenses of Lender incurred in connection with such performance or compliance,
together with interest thereon at a rate per annum equal to the default rate
applicable to the Loan as set forth in this Agreement, shall be payable by
Borrower to Lender on demand, and Borrower's obligations to make such payments
shall constitute Obligations secured hereby.

         3.7. LIMITATION ON DUTIES REGARDING PRESERVATION OF COLLATERAL.
Lender's sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession, under Section 9-207 of the
Code or otherwise, shall be to deal with it in the same manner as Lender deals
with similar property for its own account. Neither Lender nor any of its
directors, officers, employees, affiliates or agents shall be liable for failure
to demand, collect or realize upon all or any part of the Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose
of any Collateral upon the request of Borrower or any other Person.

         3.8. POWERS COUPLED WITH AN INTEREST. All authorizations and agencies
herein contained with respect to the Collateral are powers coupled with an
interest and are irrevocable until the termination of the security interest
created by this Agreement in accordance with Section 3.9 hereof.

         3.9. TERMINATION. The security interest created by this Agreement shall
not be released until the payment in full of the Obligations and Other RF
Obligations shall have occurred; PROVIDED that if any payment, or any part
thereof, of any of the Obligations or Other RF Obligations is rescinded or must
otherwise be restored or returned by Lender upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of Borrower or Guarantor, or

                                       14
<Page>

upon or as a result of the appointment of a receiver, intervenor or conservator
of, or a trustee or similar officer for, Borrower or Guarantor or any
substantial part of its property, or otherwise, this Agreement, all rights
hereunder and the Liens created hereby shall continue to be effective, or be
reinstated, as though such payments had not been made.

         3.10. SEGREGATION OF FUNDS. All payments which are received by Borrower
or Guarantor in connection with the Collateral contrary to any provision of this
Agreement, the Guarantee or the Basic Documents shall be held by Borrower or
Guarantor, as the case may be, in trust for Lender, segregated from all other
funds of Borrower or Guarantor, as the case may be, and shall forthwith upon
receipt by Borrower or Guarantor, as the case may be, be turned over to Lender
in the exact form received by Borrower or Guarantor, respectively (duly endorsed
by Borrower or Guarantor to Lender, if required), to be applied to the
Obligations and Other RF Obligations.

         3.11. THE SPREAD ACCOUNT. Lender acknowledges that pursuant to the
Spread Account Agreement, Borrower, as holder of the Certificate, has pledged
and created a security interest in certain funds and property in the account
designated in the Spread Account Agreement as the "Series 1999-1 Spread
Account." Lender acknowledges that the pledge and grant of the security interest
created herein in no way impairs or affects Borrower's pledge of such funds and
property.

         3.12. ADVANCE RATE MAINTENANCE; RELEASE OF EXCESS COLLATERAL. (a)
Lender shall determine the Present Value of the Collateral and the Advance Rate
monthly within five Business Days following each Remittance Date based upon the
Valuation Rates as modified by the Valuation Model (each such date of
determination, a "CALCULATION DATE").

         (b) After the first Calculation Date on which the Advance Rate exceeds
the Maintenance Advance Rate, in the event that as of any Calculation Date
(after such first Calculation Date) the Advance Rate exceeds the Maintenance
Advance Rate, (i) Borrower shall, within one Business Day of such Calculation
Date, pay down the Loan or pledge additional Collateral (and comply with the
provisions of Section 8.2(b)(ii) in respect thereof) in the amount necessary to
cause the Advance Rate not to exceed the Maintenance Advance Rate and (ii) until
such time as the Advance Rate equals or is less than the Maintenance Advance
Rate, all funds received by Borrower in respect of and Proceeds of all
Collateral shall be remitted by Borrower to Lender and applied in the manner set
forth in Section 2.7(c).

         (c) After the first Calculation Date on which the Advance Rate exceeds
the Maintenance Advance Rate, in the event that at the determination of the
Advance Rate as contemplated in Section 3.12(a) (after such first Calculation
Date) the Advance Rate is less than the Target Advance Rate by an amount such
that, after giving effect to a release of a Pledged Security (such released
security, a "DESIGNATED SECURITY") as Collateral hereunder, the Advance Rate
would continue to be less than the Target Advance Rate, Borrower may request
(subject to the conditions set forth in the next sentence) that Lender release
such Designated Security to Borrower. So long as no Event of Default or Other RF
Event of Default has occurred and is

                                      15
<Page>

continuing and so long as the Additional Collateral Release Condition is
satisfied, Lender will release and deliver such Designated Security to Borrower
within five (5) Business Days following such request, unless Lender reasonably
determines that, after giving effect to such release, the Advance Rate would no
longer continue to be less than the Target Advance Rate.

         3.13. VALUATION MODEL. Lender hereby agrees to provide to Borrower a
copy of its Valuation Model on or before the Closing Date. In connection with
Lender's provision of the Valuation Model to Borrower, Borrower, Guarantor and
Lender each expressly acknowledge and agree as follows:

         (a) Lender shall be entitled, in the case of any manifest error or
manifest inaccuracy contained in the Valuation Model, to revise or modify the
Valuation Model to correct any such error or inaccuracy and shall, as soon as
reasonably practicable, provide to Borrower a copy of such Valuation Model as so
revised or modified. Following the provision of such revised or modified
Valuation Model to Borrower, all calculations of the Present Value of the
Collateral and all related calculations shall be made on all subsequent
Calculation Dates in accordance with such Valuation Model as so revised or
modified.

         (b) Borrower and Guarantor hereby acknowledge and agree that the
Valuation Model is proprietary to Lender, and that the Valuation Model shall not
be used by Borrower or Guarantor, or any of their respective affiliates,
subsidiaries, directors, officers, agents or employees, as applicable
(collectively, the "AMC GROUP"), for any purpose other than determining the
Present Value of the Collateral and making relating calculations in connection
therewith, and shall at all times be maintained by each member of the AMC Group
as confidential.

         (c) Borrower and Guarantor further acknowledge and agree that Lender is
furnishing the Valuation Model to Borrower solely as an accommodation in
connection with the transactions contemplated by this Agreement. Lender makes no
representation or warranty (whether express or implied, oral or written) as to
the accuracy or completeness, or fitness for a particular use, of the Valuation
Model, and assumes no responsibility whatsoever to any member of the AMC Group
in connection with any use of such Valuation Model and, consequently, no member
of the AMC Group is relying upon Lender or the Valuation Model in such regard.

         (d) In consideration of Lender's providing the Valuation Model to
Borrower, for which Lender is not receiving any compensation, each member of the
AMC Group hereby unconditionally and irrevocably releases and discharges Lender
and its respective affiliates, directors, officers, agents, employees and
representatives from, and agrees to indemnify, hold harmless and reimburse any
such party or parties with respect to, any and all actions, liabilities, losses,
damages or claims of any kind or nature whatsoever (including, without
limitation, reasonable attorney's fees and expenses), as incurred, that may be
imposed on or incurred by or asserted against any such party or parties in any
way relating to or arising out of Lender's release of such Valuation Model to
Borrower.

                                      16
<Page>

         3.14. EXHIBIT G. Exhibit G hereto may be amended or supplemented from
time to time by (i) written notice from Lender to Borrower of any such amendment
or supplement or (ii) delivery by Lender to Borrower of a copy of Exhibit G as
so amended or supplemented; PROVIDED that such amendment or supplement relates
to one or more credit and security agreements or other similar agreements
between Lender and Guarantor. In addition, if Lender delivers changes to Exhibit
G to any Other Residual Financing Agreement as provided therein, Exhibit G
hereto shall automatically and without further action be amended by such
changes; PROVIDED that such change relates to one or more credit and security
agreements or other similar agreements between Lender and Guarantor. For all
purposes of the Warehouse Lending Agreement and the Security Agreement, EXHIBIT
G hereto will be deemed to be designated as "SCHEDULE G."

         4. Representations and Warranties.

         Each of Borrower and Guarantor hereby represents and warrants to Lender
as of the date of this Agreement and on an ongoing basis on each date that any
Loan is outstanding hereunder as follows:

         4.1. ORGANIZATION. It is a corporation duly incorporated and validly
existing in good standing under the laws of the State of Delaware and is duly
qualified to do business in each jurisdiction in which the failure to be so
qualified could reasonably be expected to have a material adverse effect on its
financial condition, operations, business or prospects.

         4.2. POWER AND AUTHORITY. It has all requisite corporate power and has
all material governmental licenses, authorizations, consents and approvals
necessary to own its assets and carry on its business as now being conducted
(except as could not reasonably be expected to have a material adverse effect on
its financial condition, operations, business or prospects), and to execute and
deliver and perform its obligations under this Agreement, including the pledge
and delivery of Collateral hereunder, and, in the case of Borrower, the
Promissory Note, and, in the case of Guarantor, the Guarantee.

         4.3. AUTHORIZATION OF BORROWING. All appropriate and necessary action
has been taken by it to authorize the execution and delivery of this Agreement
and, in the case of Borrower, the Promissory Note, and, in the case of
Guarantor, the Guarantee, and to authorize the performance and observance of the
terms hereof and thereof.

         4.4. AGREEMENT BINDING. This Agreement constitutes, and the Promissory
Note and Guarantee, when executed and delivered for value will be duly executed
and delivered and will constitute, a legal, valid and binding obligation of
Borrower and Guarantor, as applicable, enforceable in accordance with their
respective terms, except as enforceability may be limited by laws governing
insolvency or creditors' rights generally and general equity principles. The
execution, delivery and performance of this Agreement, the Promissory Note and
the Guarantee does not and will not violate any provision of law, regulation,
order or other governmental directive, or conflict with, constitute a default
under, or result in the breach of any provision of any material agreement,
ordinance, decree, bond, indenture, order or judgment to which Borrower or
Guarantor is a party or by which it is bound.

                                      17
<Page>

         4.5. COMPLIANCE WITH LAW. It is conducting its business and operations
in compliance with all applicable laws, regulations, ordinances and directives
of governmental authorities, except to the extent that any noncompliance could
not reasonably be expected to have a material adverse effect on its financial
condition, operation, business or prospects. It has filed all tax returns
required to be filed and has paid all taxes due in respect of the ownership of
its assets or the conduct of its operations except (a) to the extent that the
payment of such taxes is being contested in good faith by it in appropriate
proceedings and adequate reserves have been provided for the payment thereof, or
(b) with respect to such returns and/or taxes which are not material in either
nature or amount such that any failure to file such returns or pay such taxes
would not materially and adversely affect its financial condition, operations,
business or prospects.

         4.6. CONSENTS. All licenses, consents and approvals required from and
all registrations and filings required to be made with any governmental or other
public body or authority for the making and performance by Borrower of this
Agreement and the Promissory Note and by Guarantor of this Agreement and the
Guarantee have been obtained and are in effect, except as could not reasonably
be expected to have a material adverse effect on its financial condition,
operations, business or prospects or on its ability to perform the Obligations.

         4.7. LITIGATION. There is no action, suit or proceeding at law or in
equity by or before any court, governmental agency or authority or arbitral
tribunal now pending or, to the best of its knowledge, threatened against or
affecting it which, if determined adversely, may reasonably be expected to have
a material adverse effect on its business, operations or financial condition.

         4.8. FINANCIAL STATEMENTS. The unaudited balance sheets of Guarantor as
at June 30, 1999 and the related statements of income for the fiscal periods
ended on such date, heretofore furnished to Lender, are complete and correct in
all material respects and fairly present the financial condition of Guarantor as
at said date (subject to normal year-end audit adjustments), all in accordance
with U.S. generally accepted accounting principles applied on a consistent
basis. On said dates, Guarantor had no material contingent liabilities,
liabilities for taxes, unusual or anticipated losses from any unfavorable
commitments, except as referred to or reflected in said balance sheets as at
said dates. Since June 30, 1999 there has been no material adverse change in the
operations, condition (financial or otherwise), business or prospects of
Guarantor from that set forth in said financial statements as at said date.

         4.9. OTHER OBLIGATIONS. It is not in default in the performance,
observance or fulfillment of any obligation, covenant or condition in any of the
Basic Documents or in any agreement or instrument to which it is a party or by
which it is bound the result of which could reasonably be expected to have a
material adverse effect on its business, operations or financial condition.

         4.10. REGULATION G. No proceeds of any Loan will be used, directly or
indirectly, by Borrower for the purpose of purchasing or carrying any Margin
Stock (as defined in Regulation G of the Board of Governors of the Federal
Reserve System) or for the purpose of reducing or

                                      18
<Page>

retiring any indebtedness which was originally incurred to purchase or carry
Margin Stock or for any other purpose which might cause any Loan to be a
"purpose credit" within the meaning of Regulation G.

         4.11. INVESTMENT COMPANY ACT. It is not an "investment company" or a
company "controlled" by an investment company within the meaning of the
Investment Company Act of 1940, as amended.

         4.12. CHIEF EXECUTIVE OFFICE. The chief executive office of Borrower is
located at One Mack Centre Drive, Paramus, New Jersey 07652.

         4.13. COLLATERAL SECURITY. (a) Except for the Liens granted to Lender
pursuant to this Agreement and Liens referred to in Section 3.11, Borrower owns
and will own each item which it pledges on the date hereof or may hereinafter
pledge as Collateral, free and clear of any and all Liens. No security
agreement, financing statement or other public notice similar in effect with
respect to all or any part of the Collateral is or will be on file or of record
in any public office, except such as have been or may hereinafter be filed in
favor of Lender pursuant to this Agreement, and except in connection with the
security interest referred to in Section 3.11.

         (b) This Agreement is effective to create, as collateral security for
the Obligations and the Other RF Obligations, valid and enforceable Liens on the
Collateral in favor of Lender.

         (c) Upon filing of the financing statement(s) delivered to Lender by
Borrower on the Closing Date with the Secretary of State of the State of New
Jersey (which financing statement(s) is in proper form for filing in such
jurisdiction) and the delivery to, and continuing possession by, Lender or its
nominee of the Pledged Securities, the Liens created pursuant to this Agreement
will constitute a first priority perfected security interest in the Collateral
in favor of Lender (except to the extent the Collateral may be deemed to
represent funds on deposit in the Spread Account as referred to in Section
3.11), which Liens will be prior to all other Liens of all other Persons and
which Liens are enforceable as such as against all other Persons.

         4.14. OWNERSHIP OF PROPERTIES. Borrower has good and marketable
title to any and all of its properties and assets free and clear of Liens,
except as contemplated by this Agreement and the Basic Documents, and except
for Liens as may have been or may be created on property other than the
Collateral in connection with past or future securitizations of receivables.

         4.15. FULL DISCLOSURE. No representation or warranty made by or on
behalf of Borrower or Guarantor contained in this Agreement or the Guarantee and
no written information or information in any certificate, financial statement or
report furnished or to be furnished by or on behalf of Borrower or Guarantor
hereunder or thereunder or in connection with the transactions contemplated
hereby or thereby contains or will contain an untrue statement of a material
fact, or omits or will omit to state any material fact necessary to make the
statements herein or therein contained, in light of the circumstances in which
made, not misleading.

                                      19
<Page>

         4.16. ERISA. Set forth on Schedule 4.16 hereto is a list of all Plans,
if any, maintained by Borrower or Guarantor or any of their respective
subsidiaries (as applicable). Except as may be set forth on such schedule,
neither Borrower nor Guarantor nor any of their respective subsidiaries (as
applicable) maintains any Plans, and each of Borrower and Guarantor agrees to
notify Lender in advance of forming any Plans. Neither Borrower nor Guarantor
nor any Commonly Controlled Entity has any obligations or liabilities with
respect to any employee pension benefit plans or Multiemployer Plans, nor have
any such Persons had any obligations or liabilities with respect to any such
Plans during the five-year period prior to the date this representation is made
or deemed made. Each of Borrower and Guarantor will give notice if at any time
it or any Commonly Controlled Entity has any obligations or liabilities with
respect to any employee pension benefit plan or Multiemployer Plan. All Plans
maintained by Borrower or Guarantor or any Commonly Controlled Entity are in
substantial compliance with all applicable laws (including ERISA). Neither
Borrower nor Guarantor is an employer under any Multiemployer Plan.

         4.17. BASIC DOCUMENTS. Each of the representations and warranties made
by it in the Basic Documents to which it is a party is true and correct;
PROVIDED that this representation shall not be deemed to have been breached if
(i) Borrower or Guarantor, as the case may be, shall have breached a
representation or warranty contained in any Basic Document but such party shall
have cured such breach within the applicable cure period, if any, set forth in
the applicable Basic Document or (ii) Guarantor shall have breached any
representation set forth in Section 3.2(b) of the Purchase Agreement, so long as
(x) Guarantor complies with its obligations under Section 6.2 of the Purchase
Agreement with respect to such breach or (y) AMC complies with its obligations
under the AMC Guarantee in connection with Guarantor's obligations under Section
6.2 of the Purchase Agreement with respect to such breach.

         5. Affirmative Covenants.

         Each of Borrower and Guarantor (where indicated) hereby covenants to
Lender that, until the payment in full and final performance of all of
Borrower's and Guarantor's obligations to Lender under this Agreement, the
Promissory Note and the Guarantee, it shall perform the following obligations:

         5.1. NOTICE. (a) Each of Borrower and Guarantor shall promptly give
notice to Lender and the Certificate Insurer of the occurrence of (i) any
Default, Event of Default or Other RF Event of Default, specifying the event and
the action which Borrower proposes to take with respect thereto, (ii) any event
or occurrence which will or could reasonably be expected to adversely affect the
collectibility of any of the Receivables or the ability of Guarantor to service
such Receivables or the ability of Borrower or Guarantor to perform its
respective obligations under any related documents or (iii) any other event or
occurrence which individually or in the aggregate could reasonably be expected
to materially and adversely affect Borrower's or Guarantor's financial
condition, operations, business or prospects. Each of Borrower and Guarantor
agrees to provide contemporaneously to AMC a copy of any notice provided to
Lender pursuant to the preceding sentence; PROVIDED that failure of Borrower or
Guarantor to

                                      20
<Page>

deliver such notice to AMC shall not in any way affect (i) the obligations or
liabilities of AMC under the AMC Guarantee, (ii) any rights of Lender with
respect to AMC or (iii) any other provisions or any interpretation of this
Agreement, the Guarantee, the AMC Guarantee or any document related thereto.

         (b) Borrower shall provide Lender promptly with copies of all notices
which it is required to deliver to the Trust Collateral Agent, the Owner Trustee
and/or the Indenture Trustee pursuant to the terms of the Sale and Servicing
Agreement, the Trust Agreement and/or the Indenture, as applicable.

         5.2. TAXES. Each of Borrower and Guarantor shall pay and discharge all
taxes and governmental charges upon it or against any of its properties or
assets or its income prior to the date after which penalties attach for failure
to pay, except (a) to the extent that Borrower or Guarantor shall be contesting
in good faith in appropriate proceedings its obligation to pay such taxes or
charges, adequate reserves having been set aside for the payment thereof, or (b)
with respect to such taxes and charges which are not material in either nature
or amount such that any failure to pay or discharge them, and any resulting
penalties, either in any one instance or in the aggregate, would not materially
and adversely affect the financial condition, operations, business or prospects
of Borrower or Guarantor, respectively.

         5.3. SEPARATE EXISTENCE: NO COMMINGLING. Borrower shall maintain
separate books and records and accounts in order to maintain a separate and
distinct corporate identity from any other entity, including Guarantor and AMC
and any of Borrower's other affiliates. Borrower shall not commingle any of its
funds with the funds of any other such entity.

         5.4. FINANCING STATEMENTS. At the request of Lender, each of Borrower
and Guarantor shall execute such financing statements as Lender determines may
be required by law to perfect, maintain and protect the interest of Lender in
the Collateral and in the Proceeds thereof.

         5.5. BOOKS AND RECORDS; OTHER INFORMATION. (a) Borrower shall maintain
accurate and complete books and records with respect to the Collateral and
Borrower's business. All accounting books and records shall be maintained in
accordance with generally accepted accounting principles consistently applied.

         (b) Only to the extent reasonably necessary to protect Lender's
interest hereunder, each of Borrower and Guarantor shall, and shall (as
applicable) cause each of its respective subsidiaries to, permit any
representative of Lender to visit and inspect any of the properties of Borrower
or Guarantor to examine the books and records of Borrower or Guarantor and to
make copies and take extracts therefrom, and to discuss the business,
operations, properties, condition (financial or otherwise) or prospects of
Borrower or Guarantor and each such subsidiary or any of the Collateral with the
officers and independent public accountants thereof and as often as Lender may
reasonably request, and so long as no Default or Event of Default shall have
occurred and be continuing, all at such reasonable times during normal business
hours upon reasonable notice. In connection with the matters described in this
Section 5.5(b), Lender shall not at any time use or disclose to any Person,
except to any professional adviser who needs to

                                      21
<Page>

know such information in connection with the transactions contemplated
hereby, or except in connection with any litigation or arbitral proceedings
commenced by or against Lender or any of its affiliates, any information that
may be within or may come to its or their knowledge if such information is of
a type that would generally be expected to be held as confidential; PROVIDED
that the foregoing shall not apply to the extent that such information was
(i) previously known by Lender from sources other than Borrower or Guarantor
or their respective directors, officers or agents, (ii) in the public domain
through no fault of Lender, (iii) lawfully acquired by Lender on a
non-confidential basis from other sources who are not known by Lender to be
bound by a confidentiality agreement with Borrower or Guarantor or (iv)
required to be disclosed by judicial or administrative process or by any
other Requirement of Law.

         (c) Each of Borrower and Guarantor shall provide to Lender all
information regarding their respective operations and practices as Lender shall
reasonably request in writing.

         5.6. PAYMENT OF FEES AND EXPENSES. Each of Borrower and Guarantor shall
pay to Lender, on demand, any and all fees, costs or expenses which Lender pays
to a bank or other similar institution arising out of or in connection with the
return of payments deposited from Borrower or Guarantor, as applicable, for
collection by Lender.

         5.7. CONTINUITY OF BUSINESS AND COMPLIANCE WITH AGREEMENT. Each of
Borrower and Guarantor shall continue in business in a prudent, reasonable and
lawful manner with all licenses, permits, and qualifications necessary to
perform its respective obligations under this Agreement and the Guarantee,
except where failure to do so could not reasonably be expected to materially and
adversely affect such performance or the enforceability of Lender's security
interest in the Collateral.

         5.8. FINANCIAL STATEMENTS AND ACCESS TO RECORDS. Each of Borrower and
Guarantor shall provide Lender with quarterly unaudited financial statements
within sixty (60) days of the end of each of Guarantor's and Borrower's first
three fiscal quarters, and Guarantor will provide Lender with audited annual
financial statements within one hundred twenty (120) days of each of Guarantor's
and Borrower's fiscal year-end audited by a nationally recognized independent
certified public accounting firm. Upon request of Lender, each of Borrower and
Guarantor shall provide Lender with unaudited monthly financial statements. Each
of Borrower and Guarantor shall deliver to Lender with each financial statement
a certificate by each of Borrower's and Guarantor's chief financial officer,
certifying that (i) such financial statements are complete and correct in all
material respects, (ii) Borrower is in compliance with the covenants set forth
in Sections 5 and 6 of this Agreement and (iii) that, except as noted in such
certificate, such chief financial officer has no knowledge of any Default or
Event of Default or of any event that has occurred and is continuing which with
notice or lapse of time or both would become a Default or Event of Default.

         5.9. FINANCIAL CONDITION. Guarantor shall maintain on a consolidated
basis a net worth calculated in accordance with GAAP (including advances and
loans from AMC or its affiliates

                                      22
<Page>

(other than subsidiaries of Guarantor) to Guarantor and subordinated debt
with maturities exceeding three years) of at least $5 million.

         5.10. LITIGATION MATTERS. Borrower and/or Guarantor shall notify Lender
in writing, promptly upon its learning thereof, of any litigation, arbitration
or administrative proceeding which may reasonably be expected to materially and
adversely affect the operations, financial condition or business of Borrower or
Guarantor or Borrower's or Guarantor's ability to perform under this Agreement
or involve Lender's security interest in the Collateral or other rights under
this Agreement, the Promissory Note or the Guarantee.

         5.11. FULFILLMENT OF OBLIGATIONS. Each of Borrower and Guarantor shall
pay and perform, as and when due, all of its obligations of whatever nature,
except where the amount or validity thereof is currently being contested in good
faith by appropriate proceedings and reserves in conformity with generally
accepted accounting principles with respect thereto have been provided on the
books of Borrower or Guarantor, as the case may be, and except to the extent
that the failure to do so could not individually or in the aggregate reasonably
be expected to materially and adversely affect the financial condition,
operations, business or prospects of Borrower or Guarantor, as the case may be.

         5.12. NOTICE OF CHANGE OF CHIEF EXECUTIVE OFFICE. Borrower will provide
Lender with not less than 30 days prior written notice of any change in the
chief executive office of Borrower to permit Lender to make any additional
filings necessary to continue Lender's perfected security interest in the
Collateral.

         5.13. COMPLIANCE WITH LAWS, ETC. Each of Borrower and Guarantor shall,
and shall cause each of its respective subsidiaries (as applicable) to, comply
(i) in all material respects with all Requirements of Law and any change therein
or in the application, administration or interpretation thereof (including,
without limitation any request, directive, guideline or policy, whether or not
having the force of law) by any Governmental Authority charged with the
administration or interpretation thereof; and (ii) with all indentures,
mortgages, deeds of trust, agreements, or other instruments or contractual
obligations to which it is a party, including without limitation, each Basic
Document to which it is a party, or by which it or any of its properties may be
bound or affected, or which may affect the Receivables, if the failure to comply
therewith could, individually or in the aggregate, reasonably be expected to
materially and adversely affect the financial condition, operations, business or
prospects of Borrower or Guarantor, as the case may be.

         5.14. YEAR 2000 COMPLIANCE. Guarantor shall demonstrate on or prior to
September 30, 1999, to Lender's satisfaction (which shall be in Lender's sole
discretion), that the Guarantor's computer systems are Year 2000 Compliant.
"Year 2000 Compliant" means generally that neither performance nor functionality
of any computer hardware or software is affected by dates prior to, during, or
after the Year 2000. In particular: (a) no value for current date will cause any
interruption in operation; (b) date based functionality must behave consistently
for dates prior to, during and after the Year 2000; (c) in all interfaces and
data storage, the century in any date must

                                      23
<Page>

be specified either explicitly or by unambiguous algorithms or interferencing
rules; and (d) Year 2000 must be recognized as a leap year.

         6. Negative Covenants.

         Each of Borrower and Guarantor (where indicated) hereby covenants to
Lender that, until the payment in full and final performance of all of
Borrower's and Guarantor's respective obligations to Lender under this
Agreement, the Promissory Note and the Guarantee, without Lender's prior written
consent (which shall not be unreasonably withheld), it shall be subject to the
following restrictions:

         6.1. ADVERSE TRANSACTIONS. Neither Borrower nor Guarantor shall enter
into any transaction (including without limitation any Series Supplement (as
such term is defined in the Spread Account Agreement)) which adversely affects
the Collateral or Lender's rights under this Agreement, the Promissory Note or
the Guarantee.

         6.2. GUARANTIES. Neither Borrower nor Guarantor shall guarantee or
otherwise in any way become liable with respect to the obligations or
liabilities, of any other Person if any such action would constitute a breach of
the covenant contained in Section 5.9 hereof, except (a) for the obligations of
affiliates of Borrower or Guarantor to Lender and (b) by customary endorsement
of instruments or items of payment for deposit to the general account of
Borrower or Guarantor or for delivery to Lender.

         6.3. CORPORATE DOCUMENTS. Borrower will not amend or modify any
provision of its Certificate of Incorporation or by-laws without Lender's prior
written consent.

         6.4. INVESTMENTS; DIVIDENDS. The covenants set forth in this Section
6.4 shall be effective unless (i) the Advance Rate shall be less than 50%
(provided that until the first Calculation Date on which the Advance Rate
exceeds the Maintenance Advance Rate, the Present Value of the Collateral used
to calculate such Advance Rate shall be the Present Value of the Collateral as
of the close of business on the Closing Date) or (ii) the net worth of AMC
calculated in accordance with generally accepted accounting principles shall be
greater than $75 million (and such covenants shall be reinstated if neither of
the foregoing conditions remains satisfied):

         (a) INVESTMENTS. Neither Borrower nor Guarantor shall make any
investment in any Person through the direct or indirect holding of securities or
otherwise, other than in the ordinary course of business or in connection with
the future securitization of receivables.

         (b) DIVIDENDS. Guarantor shall not declare or pay any dividends.

         6.5. LOANS; CAPITAL STRUCTURE; AFFILIATES. The covenants set forth in
this Section 6.5 shall become effective (i) upon written notice from Lender to
Borrower and Guarantor that Lender has determined a material adverse change as
described in Section 8.1(n) hereof has

                                      24
<Page>

occurred or (ii) in the event that AMC shall have breached the net worth
covenant set forth in Section 10(g) of the AMC Guarantee:

         (a) LOANS. Except for routine and customary salary advances or loans to
employees in connection with relocation expenses consistent with past practice
of AMC and its affiliates, neither Borrower nor Guarantor shall make any
unsecured loans or other advances of money to officers, directors, employees,
stockholders, or affiliates in excess of $50,000 in the aggregate. Other than
the indebtedness under this Agreement and the Promissory Note, neither Borrower
nor Guarantor shall incur any long term or working capital debt (i) if such
action would constitute a breach of the covenant contained in Section 5.9 hereof
or (ii) secured by Collateral.

         (b) CHANGES IN CAPITAL STRUCTURE OR BUSINESS OBJECTIVES. Neither
Borrower nor Guarantor shall do any of the following if it will adversely affect
the payment or performance of, or Borrower's and Guarantor's ability to pay
and/or perform, its obligations to Lender with respect to this Agreement, the
Promissory Note and the Guarantee: (i) redeem, retire, purchase or otherwise
acquire, directly or indirectly, any of Borrower's or Guarantor's stock, except
in connection with employment or similar agreements with officers and directors
of Borrower or Guarantor consistent with past practice, or (ii) make any change
in Borrower's or Guarantor's capital structure, or (iii) make any material
change in any of its business objectives, purposes or operations which could
reasonably be expected to adversely affect the payment or performance of, or
Borrower's and Guarantor's ability to pay and/or perform, its obligations to
Lender with respect to this Agreement, the Promissory Note or the Guarantee.

         (c) TRANSACTIONS WITH AFFILIATES. Neither Borrower nor Guarantor shall
enter into, or be a party to, any transaction with any affiliate or stockholder
of Borrower or Guarantor, except, consistent with Borrower's or Guarantor's
practice before entering into this Agreement, in the ordinary course of, and
pursuant to the reasonable requirements of, Borrower's and Guarantor's business
and upon fair and reasonable terms (which Borrower agrees to discuss with Lender
from time to time upon Lender's request) which are not materially less favorable
than would be obtained in a comparable arm's length transaction with a person or
entity not an affiliate or stockholder of Borrower or Guarantor.

         6.6. LIENS. (a) Borrower shall not grant or otherwise create any Lien
on any of its properties except to Lender hereunder and to Lender under any
Other Residual Financing Agreement.

         (b) Neither Borrower nor Guarantor shall grant or otherwise permit any
Liens on the capital stock of Borrower, except to Financial Security Assurance
Inc. under the Stock Pledge and Collateral Agency Agreement dated as of March 1,
1997 among Guarantor, as pledgor, Financial Security Assurance Inc., as pledgee,
and Chase Bank of Texas, National Association , as collateral agent, as such
agreement may be amended, supplemented or otherwise modified from time to time.

         6.7. VSI POLICIES. Borrower has obtained each VSI Policy and as of the
Cutoff Date, one or more of such policies is in full force and effect with
respect to each Receivable. Borrower

                                      25
<Page>

shall not (a) replace any such VSI Policy with a substitute insurance policy
unless (i) the insurer issuing such replacement policy has a rating by A.M.
Best of "A-" or higher and (ii) such replacement shall not adversely affect
the Collateral or Lender's rights under this Agreement, the Promissory Note
or the Guaranty, and (b) except as provided in clause (a) above, Borrower
will not cancel or otherwise terminate any VSI Policy (or any replacement
insurance policy) unless Lender has given its prior written consent to such
cancellation or termination.

         6.8. CUSTODIAN. Guarantor shall not, pursuant to Section 10.8(e) of the
Sale and Servicing Agreement, assume the duties of Custodian without having
obtained the prior written consent of Lender. 7. Conditions Precedent.

         7. Conditions Precedent.

         7.1. CONDITIONS PRECEDENT TO AGREEMENT. The obligation of Lender to
extend to Borrower the Loan as described in this Agreement is subject to
satisfaction of the following conditions on or prior to the Closing Date:

         (a) The receipt by Lender, concurrently with the signing of this
Agreement and, with respect to paragraph (v) only, together with the financial
statements to be delivered pursuant to this Agreement, in form and substance
satisfactory to Lender, of the following:

         (i) Evidence of the authority of the persons executing this Agreement,
the Promissory Note, the Guarantee and the AMC Guarantee and any other documents
contemplated herein and therein, together with specimen signatures of such
persons; and

         (ii) A certified copy of Borrower's, Guarantor's and AMC's Certificate
of Incorporation and By-Laws and a good standing certificate from the State of
Delaware and/or of California, as applicable; and

         (iii) Certified copies of all necessary resolutions of the Board of
Directors of Borrower, Guarantor and AMC authorizing the execution and delivery
and performance under this Agreement, the Promissory Note, the Guarantee and the
AMC Guarantee, as applicable; and

         (iv) The duly executed, original Promissory Note; and

         (v) A certificate, as of the date of signing of the Agreement, by the
President, a Vice President or the Treasurer of each of Borrower, Guarantor and
AMC certifying that the representations and warranties contained in Section 4
hereof or in Section 9 of the AMC Guarantee, as the case may be, are true and
correct, that each of Borrower, Guarantor and AMC, as the case may be, is in
compliance with the covenants set forth in Sections 5 and 6 hereof or in Section
10 of the AMC Guarantee, as the case may be, and that no Default, Event of
Default or Other RF Event of Default has occurred and is continuing; and

         (vi) The duly executed, original of the Guarantee and the AMC
Guarantee; and

                                      26
<Page>

         (vii) The following opinions of counsel in form and substance
satisfactory to Lender's counsel:

                           (A) Standard corporate opinions of Borrower,
                  Guarantor and AMC regarding due authorization, execution,
                  consents, material litigation and noncontravention
                  substantially in the form attached hereto as EXHIBIT E;

                           (B) Enforceability of this Agreement, the Promissory
                  Note, Guarantee and the AMC Guarantee;

                           (C) Lien, priority and perfection opinions relating
                  to the pledge of Collateral pledged on the date hereof by
                  Borrower to Lender;

                           (D) Non-consolidation opinions as between Borrower,
                  Guarantor and AMC; and

                           (E) Such other opinions as Lender's counsel shall
                  reasonably request; and

         (viii) A notice to the Trust Collateral Agent signed by Borrower to the
effect set forth in Section 2.7(b); and

         (ix) Such other documents, certificates or financial or other
information as Lender may reasonably request.

         (b) The consummation of the Securitization Transaction.

         (c) The Certificate shall have been delivered to Lender or its agent,
together with appropriate instruments of transfer duly endorsed in blank, and
together with a Medallion Guarantee with respect to the signature on the
transfer power accompanying the Certificate delivered to Lender or its agent on
the Closing Date.

         (d) Financing statements on Form UCC-1 naming Borrower as "debtor" and
Lender as "secured party" and describing the Collateral as "collateral"
thereunder, shall have been delivered to Lender in proper form for filing in
each jurisdiction in which it is necessary to file to perfect a security
interest therein.

         8. Events of Default.

         8.1. EVENTS OF DEFAULT. Each of the following events and occurrences
shall constitute an Event of Default under this Agreement if not cured within
three Business Days of their occurrence unless the context of the provision
indicates otherwise (provided that the events described in paragraphs (f), (g),
(h), (i), (j) and (m) shall have no cure period):

                                      27
<Page>

         (a) Payment by or on behalf of Borrower shall fail to be made to Lender
when due of principal or interest on the Loan or of any other Obligation.

         (b) Borrower fails to perform or observe any material provision of
Section 6 of this Agreement, or Guarantor fails to perform or observe any
material provision of the Guarantee or AMC fails to perform or observe any
material provision of the AMC Guarantee (such materiality in each case, as
determined by Lender) and such failure to perform or observe continues
unremedied for 30 days following the earlier to occur of (i) a Responsible
Officer having actual knowledge of such failure to perform or observe and (ii)
written notice of such failure to perform or observe from Lender to Borrower,
Guarantor or AMC, as the case may be.

         (c) Borrower shall fail to perform or observe any other provision of
this Agreement (other than as referred to in Sections 8.1(a) or 8.1(b)) or the
Promissory Note, or Guarantor shall fail to perform or observe any provision of
the Guarantee (other than as referred to in Sections 8.1(a) or 8.1(b)), or AMC
shall fail to perform or observe any material provision of the AMC Guarantee
(other than as referred to in Sections 8.1(a) or 8.1(b)) within 30 days (or, in
the case of any failure to perform or observe the provisions of Section 5.14, 5
days) following the earlier of (i) a Responsible Officer having actual knowledge
of such failure to perform or observe or (ii) written notice thereof from
Lender; PROVIDED that any such failure to perform or observe Section 5.11 hereof
caused solely by an event described in Section 8.1(d) shall constitute an Event
of Default only as provided in Section 8.1(d).

         (d) Borrower, Guarantor or AMC shall fail to pay any money due under
any other agreement, note, indenture or instrument evidencing, securing,
guaranteeing or otherwise relating to indebtedness of Borrower, Guarantor or AMC
for borrowed money, which failure to pay constitutes an event of default under
any such agreement or instrument or constitutes a default thereunder and such
default shall continue beyond the grace period (not to exceed one Business Day),
if any, therein specified and, in connection with such failure, the maturity of
such indebtedness is accelerated; or Borrower, Guarantor or AMC shall default in
the observance or performance of any other covenant or condition in any such
agreement or instrument and such default shall continue beyond the grace period,
if any, therein specified and, in connection with such default, the maturity of
such indebtedness is accelerated; or any other event shall occur or condition
shall exist if the effect of such event or condition is to accelerate the
maturity of such indebtedness; or any such indebtedness shall be declared due
and payable prior to the stated maturity thereof; other than, in each case,
indebtedness with respect to which the failure to pay could not, individually or
in the aggregate, reasonably be expected to have a material adverse effect on
the financial condition, operations, business or prospects of Borrower,
Guarantor or AMC, as the case may be.

         (e) Borrower, Guarantor or AMC receives notice, or a Responsible
Officer has knowledge, of a breach by Borrower, Guarantor or AMC of any material
representation, warranty or obligation contained in this Agreement, the
Promissory Note, the Guarantee, the AMC Guarantee, the Basic Documents or in any
other agreement with Lender; PROVIDED that (i) a breach by Borrower, Guarantor
or AMC of a representation or warranty in a Basic Document

                                      28
<Page>

shall not constitute an Event of Default hereunder if such party shall have
cured such breach within the applicable cure period, if any, set forth in
such Basic Document and (ii) a breach by Guarantor of the representations and
warranties set forth in Section 3.2(b) of the Purchase Agreement shall not
constitute an Event of Default hereunder so long as Guarantor complies with
its obligations under Section 6.2 of the Purchase Agreement with respect to
such breach; PROVIDED, FURTHER, that any such breach of Section 5.11 hereof
caused solely by an event described in Section 8.1(d) shall constitute an
Event of Default only as provided in Section 8.1(d).

         (f) The Collateral or any other assets of Borrower, Guarantor or AMC
are attached, seized, levied upon or subjected to a writ or distress warrant, or
come within the possession of any receiver, trustee, custodian or assignee for
the benefit of Borrower, Guarantor or AMC and the same is not dissolved or
dismissed within sixty (60) days thereafter except, in the case of Guarantor or
AMC, where any such actions or events would not either individually or in the
aggregate materially and adversely affect the financial condition, operations,
business or prospects of Guarantor or AMC, as the case may be; an application is
made by any Person other than Borrower, Guarantor or AMC for the appointment of
a receiver, trustee, or custodian for the Collateral or a material portion of
the assets of Borrower, Guarantor or AMC and the same is not dismissed within
sixty (60) days after the application thereof, or Borrower, Guarantor or AMC
shall have concealed, removed or permitted to be concealed or removed, in the
case of Borrower, any part, and in the case of Guarantor or AMC, any material
portion, of its property with intent to hinder, delay or defraud its creditors
or made or suffered a transfer of any of its property which is fraudulent under
any bankruptcy, fraudulent conveyance or other similar law.

         (g) An application is made by Borrower, Guarantor or AMC for the
appointment of a receiver, trustee or custodian for the Collateral or any other
assets of Borrower, Guarantor or AMC; a petition under any section or chapter of
the Bankruptcy Code or federal or state law or regulation shall be filed by
Borrower, Guarantor or AMC, or Borrower, Guarantor or AMC shall make an
assignment for the benefit of its creditors, or any case or proceeding shall be
filed by Borrower, Guarantor or AMC for its dissolution, liquidation, or
termination, by Borrower, Guarantor or AMC, or Borrower, Guarantor or AMC ceases
to conduct its business.

         (h) Borrower, Guarantor or AMC is enjoined, restrained or in any way
prevented by court order from conducting all or any material part of its
business affairs, or a petition under any section or chapter of the Bankruptcy
Code or any similar federal or state law or regulation is filed against
Borrower, Guarantor or AMC, or any case or proceeding is filed against Borrower,
Guarantor or AMC, for its dissolution or liquidation, and such injunction,
restraint, petition, case or proceeding is not dismissed within sixty (60) days
after the entry of filing thereof.

         (i) A notice of lien, levy or assessment is filed of record with
respect to all or any assets of Borrower, Guarantor or AMC by the United States,
or any department, agency or instrumentality thereof, or by any state, county,
municipal or other governmental agency and it is not released within sixty (60)
days after the filing and is material to the financial position of the
respective entity, or if any taxes or debts become a lien or encumbrance upon
the Collateral

                                      29
<Page>

or any other affiliate's assets, and the same is not released within sixty
(60) days after the same becomes a lien or encumbrance, except to the extent
that such taxes or debts are being contested in good faith in appropriate
proceedings, adequate reserves have been set aside for the payment thereof
and notice of such proceedings and of the actions being taken in respect
thereof have been provided to Lender.

         (j) Borrower, Guarantor or AMC becomes insolvent or admits in writing
to its inability to pay its debts as they mature.

         (k) LBAC shall at any time resign, or be terminated, as a servicer
under any securitization.

         (l) Lender shall for any reason cease to have a first priority
perfected security interest in the Collateral free and clear of all Liens, other
than the Liens granted to Lender hereunder; PROVIDED that the Borrower shall
have five days after Borrower obtains actual knowledge of such condition to cure
such condition.

         (m) The Guarantee or the AMC Guarantee shall cease to be in full force
and effect or the Guarantor or AMC or an officer or authorized representative
acting on its behalf shall so assert.

         (n) Lender, in its good faith judgment, has reasonable cause to believe
that there has been a material adverse change in (i) the Collateral, (ii) in
Lender's rights under this Agreement, the Promissory Note, the Guarantee or the
AMC Guarantee, or (iii) in the business, operations, prospects or condition
(financial or otherwise) of Borrower, Guarantor or AMC (which, in the case of
this clause (iii), has not been cured within three Business Days following
written notice thereof from the Lender); PROVIDED that Lender, in its
good faith judgement, has reasonable cause to believe that as a result of such
event (x) Borrower may be unable to fulfill its obligations hereunder (y)
Guarantor may be unable to fulfill its obligations under the Guarantee or (z)
AMC may be unable to fulfill its obligations under the AMC Guarantee.

         (o) Borrower shall enter into a Series Supplement pursuant to the
Spread Account Agreement relating to or otherwise affecting the collateral
securing this Agreement and/or any Other Residual Financing Agreement without
having obtained the prior written consent of Lender.

         8.2. REMEDIES OF DEFAULT. (a) If not cured within the cure period, if
any, provided within the relevant provision, then upon the continuance of such
Event of Default Lender may, by notice to Borrower (which notice shall be deemed
given automatically upon occurrence of an Event of Default referred to in
paragraph (f), (g), (h), (i) or (j)), declare immediately due and payable all
principal, interest and other Obligations payable hereunder and under the
Promissory Note by Borrower then due and payable that would otherwise be due
after the date specified in the notice (or the date such notice is deemed
given), whereupon all those amounts shall become immediately due and payable,
all without further diligence, presentment, demand of payment, protest or notice
of any kind, all of which are expressly waived by Borrower. If any Event of

                                      30
<Page>

Default shall occur and be continuing, Lender may exercise all rights and
remedies of a secured party under the Code, and, to the extent permitted by law,
all other rights and remedies granted to Lender in this Agreement, the Guarantee
and the AMC Guarantee and in any other instrument or agreement securing,
evidencing or relating to the Obligations. Without limiting the generality of
the foregoing, if an Event of Default or Other RF Event of Default shall occur
and be continuing Lender may sell the Collateral in a commercially reasonable
manner as determined by Lender (subject to the limitations set forth in the
Trust Agreement), instituting suit in equity or instituting other appropriate
proceedings, whether for the specific performance of any agreement contained
herein, or for an injunction against a violation of any of the terms hereof, or
in aid of the exercise of any power granted hereby or by law. If Lender opts to
sell or otherwise dispose of the Collateral as one of its remedies upon an Event
of Default or Other RF Event of Default, Borrower (subject to Section 2.10) and
Guarantor shall remain liable for any remaining deficiency upon applying the
proceeds of such sale or other disposition against any and all Obligations and
Other RF Obligations, including, without limitation, the reasonable fees and
disbursements of any attorneys employed by Lender to collect such deficiency.

         (b)      (i) Without limitation to any of the provisions or remedies
set forth in Section 8.2(a), if any Event of Default shall have occurred and be
continuing, Borrower may, with the consent of Lender in Lender's sole
discretion, (i) make a principal payment on the Loans in such amount as Lender
shall specify or (ii) pledge additional Collateral having such value, as
determined by Lender in its sole discretion, as Lender shall specify. If Lender
consents to Borrower's taking such action as is described in this Section 8.2(b)
upon an Event of Default, Borrower (subject to Section 2.10) and Guarantor shall
remain liable for any remaining deficiency between the amount of the Obligations
and the amount of the principal payment or pledge of additional Collateral made
pursuant hereto, and under no circumstances shall Lender's consent to such
action be construed as a waiver of such deficiency or a modification of the
Obligations.

                  (ii) In the event that Borrower shall hereinafter pledge
any Collateral in addition to the Collateral pledged to Lender on the date
hereof, Borrower shall, concurrently with such pledge, deliver to Lender an
opinion of counsel in form and substance reasonably satisfactory to Lender
regarding priority, perfection and the absence of Liens in respect of such
Collateral.

         (c) Notwithstanding anything in Section 6.5 to the contrary, it is
expressly understood and agreed that Lender shall have sole discretion in
determining whether to enforce the covenants set forth in Section 6.5 or
immediately to pursue the remedies set forth in this Section 8.2 upon the
occurrence of a material adverse change as described in Section 8.1(n). Under no
circumstances shall Lender's decision to enforce the covenants set forth in
Section 6.5 following such a material adverse change be construed as a waiver of
the Event of Default described in Section 8.1(n), or otherwise in any way
modify, limit, delay or impair any rights which Lender would otherwise have
pursuant to this Section 8.2.

                                      31
<Page>

         (d) Lender shall use its reasonable efforts to notify Guarantor and AMC
upon the occurrence of an Event of Default; PROVIDED that the omission so to
notify shall not relieve Guarantor or AMC from any liability which it may have
to Lender (or extend the period of time within which performance is required by
Guarantor or AMC) in connection with such Event of Default or from any of its
respective obligations under the Guarantee or the AMC Guarantee, as the case may
be.

         9. Miscellaneous.

         9.1. PAYMENT OF EXPENSES, INDEMNITY, ETC. Each of Borrower and
Guarantor jointly and severally agree to:

         (i) pay or reimburse Lender on demand for all its reasonable
out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and any amendment, modification or supplement to,
or any waiver under, this Agreement or the Guarantee and any other document
prepared in connection therewith, and the consummation and administration of the
transactions contemplated thereby, including without limitation the reasonable
fees and disbursements of counsel to Lender; PROVIDED that, neither the Borrower
nor Guarantor shall be obligated to reimburse Lender for the foregoing costs and
expenses of counsel unless such costs and expenses are incurred in connection
with:

                  (A) the advice of counsel with respect to (1) the performance
         of Borrower or Guarantor and/or any of their respective Affiliates
         under this Agreement, the Guarantee or any other document prepared in
         connection therewith or (2) (x) the rights of Lender under this
         Agreement, the Guarantee or any other document prepared in connection
         therewith and (y) Lender's rights relating to the Collateral
         (including, without limitation, its security interest therein), in each
         case in this clause (2) in connection with any change in the condition
         (financial or otherwise), operations, business or prospects of the
         Borrower or any of its Affiliates;

                  (B) any waiver in respect of this Agreement, the Guarantee or
         any other document prepared in connection therewith (whether or not
         executed or otherwise granted as provided therein);

                  (C) any amendment, supplement or modification in respect of
         this Agreement, the Guarantee or any other document prepared in
         connection therewith that is executed by the parties thereto as
         required by this Agreement or the Guarantee or any other document
         prepared in connection therewith, as the case may be; or

                  (D) any proposed amendment, supplement or modification in
         respect of this Agreement, the Guarantee or any other document prepared
         in connection therewith that is not executed by the parties thereto as

                                      32
<Page>

         required by such loan document if Borrower proposed or requested such
         amendment, supplement or modification;

         (ii) pay on demand all reasonable costs and expenses of Lender,
including without limitation the reasonable fees and disbursements of counsel to
Lender, in connection with the occurrence or continuance of a Default or Event
of Default and the enforcement, collection, protection or preservation (whether
through negotiations, legal proceedings or otherwise) of this Agreement or the
Guarantee, the Collateral, any Obligation or any right, remedy, power or
privilege of Lender hereunder or under the Guarantee;

         (iii) pay and hold Lender harmless from and against any and all present
and future stamp, excise, recording or other similar taxes or fees payable in
connection with the execution, delivery, recording and filing of this Agreement
or the Guarantee and hold Lender harmless from and against any and all
liabilities with respect to or resulting from any delay or omission to pay such
taxes or fees; and

         (iv) indemnify Lender and its affiliates and each of their respective
directors, officers, employees and agents and hold each of them harmless from
and against, any and all liabilities, losses, damages, penalties, actions,
judgments, suits, claims, costs, expenses and disbursements, including without
limitation the reasonable fees and disbursement of counsel to Lender and such
other parties, incurred by any of them in connection with, arising out of or in
any way relating to any investigation, claim, litigation or other proceeding,
pending or threatened (whether or not any of them is designated a party
thereto), in connection with, arising out of or in any way related to this
Agreement or the Guarantee or any of the transactions contemplated herein or
therein or any use of the proceeds of the Loan by Borrower; PROVIDED that Lender
shall not be entitled to any indemnification for any of the foregoing resulting
from its gross negligence or willful misconduct.

If and to the extent that the indemnity obligations of Borrower under this
Section 9.1 may be unenforceable for any reason, Borrower hereby agree to make
the maximum contribution to the payment and satisfaction of each of such
indemnity obligations which is permissible under applicable law.

         9.2. SET-OFF. In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, during the
continuance of any Event of Default hereunder Lender is hereby authorized at any
time and from time to time, without notice to Borrower, Guarantor or to any
other person or entity, any such notice being hereby expressly waived, to
set-off against any obligation owing by Lender or any affiliate of Lender to
Borrower or Guarantor, or against any funds or other property of Borrower or
Guarantor held by or otherwise in the possession of Lender or any affiliate of
Lender, the obligations and liabilities of Borrower to Lender under this
Agreement or of Guarantor to Lender under its respective Guarantee, irrespective
of whether or not Lender shall have made any demand hereunder or under the
Guarantee.

                                      33
<Page>

         9.3. AMENDMENTS. No provision of this Agreement may be amended,
supplemented, modified or waived unless the same shall be in writing signed by
Lender, Borrower and Guarantor and, solely in the case of amendments,
supplements, modifications or waivers to Sections 2.10 and 9.5 hereof, without
the prior written consent of the Certificate Insurer thereto.

         9.4. WAIVER; CUMULATIVE RIGHTS. No failure on the part of Lender to
exercise and no delay in exercising, and no course of dealing with respect to,
any right, power or privilege under this Agreement or the Promissory Note shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege under this Agreement, the Promissory Note or the
Guarantee preclude any other or further exercise thereof or the exercise of any
other right, power, or privilege. The remedies provided herein are cumulative
and not exclusive of any remedies provided by law.

         9.5. NONPETITION COVENANT. Lender shall not, prior to the date which is
one year and one day after the termination of each of the Indenture, the Trust
Agreement and the Spread Account Agreement with respect to Borrower, petition or
otherwise invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against Borrower under any Federal or
State bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of Borrower or any substantial part of its property, or ordering the winding up
or liquidation of the affairs of Borrower.

         9.6. NON-AFFILIATION. Lender hereby agrees that, so long as it has any
interest in the Certificate hereunder, it shall not become an affiliate of
Borrower.

         9.7. BINDING EFFECT. This Agreement shall be binding upon and shall be
enforceable by Borrower, Guarantor and Lender and their respective successors
and permitted assigns.

         9.8. SURVIVAL. The provisions of Sections 3.13(b), (c) and (d) and 9.1
shall survive the execution and delivery of this Agreement and the payment in
full of the Obligations, and in the case of Section 9.1, the Other RF
Obligations.

         9.9. GOVERNING LAW, ETC.; WAIVER OF TRIAL BY JURY. (A) THIS AGREEMENT
AND THE PROMISSORY NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAW OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY
FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE PROMISSORY NOTE, THE GUARANTEE OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PARTY HERETO IN ANY
OTHER JURISDICTION. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR

                                      34
<Page>

HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN
SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

                  (B) EACH OF BORROWER, LENDER AND GUARANTOR HEREBY IRREVOCABLY
         WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO
         TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
         THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                  (C) EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
         PROCESS PERSONALLY DELIVERED OR TRANSMITTED BY REGISTERED MAIL TO THE
         ADDRESS SET FORTH FOR NOTICES IN SECTION 9.10; PROVIDED THAT UPON ANY
         SUCH SERVICE BY REGISTERED MAIL THE SENDING PARTY SHALL, SIMULTANEOUSLY
         THEREWITH, SEND NOTICE OF SUCH SERVICE TO THE OTHER PARTY VIA FACSIMILE
         TRANSMISSION. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
         PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

         9.10. NOTICE. (a) Any notice hereunder shall be in writing and shall be
personally delivered, transmitted by postage prepaid registered airmail, by
facsimile, telegram or cable to the parties as follows:

To Lender:             Greenwich Capital Financial Products, Inc.
                       600 Steamboat Road
                       Greenwich, Connecticut 06830
                       Attention:  Asset-Backed Finance
                       Telephone:  (203) 622-5665
                       Facsimile:  (203) 629-4640

                       WITH A COPY TO:
                       --------------

                       Greenwich Capital Financial Products, Inc.
                       600 Steamboat Road
                       Greenwich, Connecticut 06830
                       Attention:  General Counsel
                       Telephone:  (203) 625-6065
                       Facsimile:  (203) 629-4571

To Borrower:           Long Beach Acceptance Receivables Corp.
                       One Mack Centre Drive

                                      35
<Page>

                       Paramus, New Jersey 07652
                       Attention:  General Counsel
                       Telephone:  (201) 262-5222
                       Facsimile:  (201) 262-6868

                       With copies to Guarantor and AMC as per clause (b) below.

To Guarantor:          Long Beach Acceptance Corp.
                       One Mack Centre Drive
                       Paramus, New Jersey 07652
                       Attention:  General Counsel
                       Telephone:  (201) 262-5222
                       Facsimile:  (201) 262-6868

To AMC:                Ameriquest Mortgage Company
                       1100 Town and Country Road
                       Orange, CA  92868
                       Attention:  General Counsel
                       Telephone:  (714) 564-0060
                       Facsimile:  (714) 245-0970

To the Certificate
  Insurer:             Financial Security Assurance Inc.
                       350 Park Avenue
                       New York, New York 10022
                       Attention:  Surveillance Department; Re:  Long Beach Auto
                              Receivables Trust 1999-1
                       Telephone:  (212) 826-0100
                       Facsimile:  (212) 339-3518; (212) 339-3529

         All notices and other communications shall be deemed to have been duly
given on the date of receipt if delivered personally; the date five (5) calendar
days after posting if transmitted by mail; or in the case of a facsimile,
telegram or cable, at the time sent. Any party may change its address for
purposes hereof by notice to the other.

         (b) Lender hereby agrees that it will provide to Guarantor and AMC
copies of all notices it provides to Borrower hereunder.

         9.11. SEVERABILITY. If any one or more of the provisions contained in
this Agreement or any document executed in connection herewith shall be invalid,
illegal or unenforceable in any respect under any applicable law, the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected or impaired.

                                      36
<Page>

         9.12. COUNTERPARTS. This Agreement may be signed in any number of
counterparts which, taken together, shall constitute a full and original
agreement for all purposes.

         9.13. MERGER OR CONSOLIDATION. Any Person (i) into which Borrower or
Guarantor may be merged or consolidated, (ii) resulting from any merger or
consolidation to which Borrower or Guarantor is a party or (iii) succeeding to
all or substantially all of the business of Borrower or Guarantor, PROVIDED that
in any of the foregoing cases such Person shall execute an agreement of
assumption to perform every obligation of Borrower or Guarantor, as the case may
be, under this Agreement, and whether or not such assumption agreement is
executed, shall be the successor to Borrower or Guarantor hereunder (without
relieving Borrower or Guarantor of its responsibilities hereunder, if it
survives such merger or consolidation) without the execution or filing of any
document or any further act by any of the parties to this Agreement.

         9.14. SUBSEQUENT ACTIONS. Each party shall, upon the written request of
the other party from time to time after execution of this Agreement and without
further consideration, execute such documents or take such action as may be
reasonably necessary to carry out the purpose or intention of this Agreement.

         9.15. ASSIGNABILITY. The rights and obligations of the parties under
this Agreement shall not be assigned or otherwise transferred, by sale of
participation interests or otherwise, by any party without the prior written
consent of the other party, which consent shall not be unreasonably withheld,
except that this Agreement may be assigned without such prior written consent to
any Person who succeeds Borrower or Guarantor, as the case may be, as provided
in Section 9.13.

         9.16. CERTAIN REIMBURSEMENTS. (a) Notwithstanding Section 8 of the
Guarantee or anything herein to the contrary, Borrower may on any Remittance
Date reimburse Guarantor for any payments made under the Guarantee, so long as
(i) all amounts owing to Lender on such Remittance Date have been paid, (ii) no
Default or Event of Default shall have occurred and be continuing and (iii) the
Advance Rate shall be less than the then applicable Target Advance Rate.
(provided that until the first Calculation Date on which the Advance Rate
exceeds the Maintenance Advance Rate, (x) the Present Value of the Collateral
used to calculate such Advance Rate shall be the Present Value of the Collateral
as of the close of business on the Closing Date and (y) the Advance Rate used in
the calculation of the Target Advance Rate shall be based on the Present Value
of the Collateral as of the close of business on the Closing Date).

         (b) Notwithstanding Section 8 of the AMC Guarantee or anything herein
to the contrary, Borrower and/or Guarantor may on any Remittance Date reimburse
AMC for any payments made under the Guarantee, so long as (i) all amounts owing
to Lender on such Remittance Date have been paid, (ii) no Default or Event of
Default shall have occurred and be continuing and (iii) the Advance Rate shall
be less than the then applicable Target Advance Rate. (provided that until the
first Calculation Date on which the Advance Rate exceeds the Maintenance Advance
Rate, (x) the Present Value of the Collateral used to calculate such Advance
Rate shall be the Present Value of the Collateral as of the close of business on
the

                                      37
<Page>

Closing Date and (y) the Advance Rate used in the calculation of the Target
Advance Rate shall be based on the Present Value of the Collateral as of the
close of business on the Closing Date).

                            [Signature Page Follows]

                                      38
<Page>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives on the date first written
above.

                  GREENWICH CAPITAL FINANCIAL PRODUCTS, INC., Lender

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

                  LONG BEACH ACCEPTANCE RECEIVABLES CORP., Borrower

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

                  LONG BEACH ACCEPTANCE CORP., Guarantor

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

                                       39
<Page>

                                                                   SCHEDULE 4.16

                                      PLANS

Borrower: None
Guarantor: None

<Page>

                                                                       EXHIBIT A

                   GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.

                                 PROMISSORY NOTE

                                                                 August 12, 1999

Amount: U.S. $5,049,482

         FOR VALUE RECEIVED, LONG BEACH ACCEPTANCE RECEIVABLES CORP. (the
"BORROWER") unconditionally promises to pay on the Maturity Date (as defined in
the Agreement referred to below) to the order of Greenwich Capital Financial
Products, Inc. (the "LENDER") in Federal or other immediately available funds in
lawful money of the United States the principal sum of FIVE MILLION FORTY-NINE
THOUSAND FOUR HUNDRED EIGHTY-TWO DOLLARS (U.S. $5,049,482) or, if less, the
aggregate unpaid principal amount of the Loan made by Lender to Borrower
pursuant to the Agreement, and to pay interest thereon from the date hereof
until this Promissory Note is repaid in like money at the rates per annum and in
the manner set forth in the Agreement.

         The principal of and interest on this Promissory Note shall be payable
in immediately available funds without set-off or counterclaim, in the manner
set forth in the Agreement.

         This Promissory Note is issued pursuant to the terms of a Credit and
Security Agreement dated as of August 12, 1999 among Borrower, Lender and Long
Beach Acceptance Corp., as Guarantor (as amended from time to time, the
"AGREEMENT"), and is subject to the terms thereof and is entitled to the
benefits therein provided.

         Upon the occurrence of an Event of Default (as defined in the
Agreement), the principal of and accrued interest on this Promissory Note may be
declared due and payable in the manner and with the effect provided in the
Agreement, without presentment, demand, protest or notice of any kind, each of
which is hereby expressly waived by Borrower.

         THIS PROMISSORY NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK.

                                    LONG BEACH ACCEPTANCE RECEIVABLES CORP.

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

                                      A-1
<Page>

                                                                       EXHIBIT B

                                                                 August 12, 1999

                            [FORM OF LBAC GUARANTEE]

Greenwich Capital Financial Products, Inc.
600 Steamboat Road
Greenwich, Connecticut 06830

         Re:      Guarantee by Long Beach Acceptance Corp. of Credit
                  and Security Agreement Dated as of August 12, 1999
                  --------------------------------------------------

Ladies and Gentlemen:

         1. For value received and in accordance with the terms of the Credit
and Security Agreement, dated as of AUGUST 12, 1999 (the "AGREEMENT"), among
Greenwich Capital Financial Products, Inc., as Lender ("LENDER"), Long Beach
Acceptance Receivables Corp., as Borrower ("BORROWER"), and Long Beach
Acceptance Corp., as Guarantor (the "GUARANTOR"), Guarantor hereby
unconditionally and irrevocably guarantees to Lender, or any successor in
interest of Lender, the due, punctual and complete payment and performance by
Borrower when and as due, whether at the stated maturity, by acceleration, upon
one or more dates set for repayment or prepayment or otherwise of the
Obligations. Lender may make demands under this Guarantee for such amounts and
performance from time to time. Guarantor hereby represents that its obligations
hereunder do and shall rank PARI PASSU with all unsecured and unsubordinated
indebtedness of Guarantor, as applicable. Terms used and not defined herein
shall have the meanings assigned in the Agreement.

         2. Payments and performance required under this Guarantee shall be
payable and performed whenever any amount or performance guaranteed hereunder
has not been promptly made to Lender in accordance with the Agreement. When
pursuing its rights and remedies hereunder against Guarantor, Lender may, but
shall be under no obligation to, pursue the rights, remedies, powers and
privileges as it may have against Borrower or any other Person or against any
collateral security or guarantee for the Obligations or any right of offset with
respect thereto. Any failure by Lender to pursue the other rights, remedies,
powers or privileges or to collect any payments from Borrower or any other
Person or to realize upon any collateral security or guarantee or to exercise
any right of offset, or any release of Borrower or any other Person or of any
the collateral security, guarantee or right of offset, shall not relieve
Guarantor of any liability hereunder, and shall not impair or affect the rights,
remedies, powers or privileges, whether express, implied or available as a
matter of law, of Lender against Guarantor.

         3. Guarantor shall remain obligated hereunder notwithstanding that,
without any reservation of rights against Guarantor, and without notice to or
further assent by Guarantor, any

                                      B-1
<Page>

demand for payment of any of the Obligations made by Lender may be rescinded
by Lender, and any of the Obligations continued, and the Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by
Lender, and the Guarantee or the Agreement and any other documents executed
and delivered in connection therewith may be amended, modified, supplemented
or terminated in accordance with the terms thereof, in whole or in part, as
Lender may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by Lender for the payment of
the Obligations may be sold, exchanged, waived, surrendered or released.
Lender shall have no obligation to protect, secure, perfect or insure any
Lien at any time held by it as security for the Obligations or for the
guarantee set forth herein or any property subject thereto. When making any
demand hereunder against Guarantor, Lender may, but shall be under no
obligation to, make a similar demand on Borrower or any other guarantor
(including, without limitation, any other Guarantor), and any release of
Borrower or the other guarantor (including, without limitation, any other
Guarantor), shall not relieve any of its obligations or liabilities
hereunder, and shall not impair or affect the rights, remedies, powers and
privileges, express or implied, or as a matter of law, of Lender against
Guarantor.

         4. Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Obligations and notice of or proof of
reliance by Lender upon the guarantee of Guarantor set forth herein or
acceptance of the guarantee of Guarantor set forth herein; the Obligations, and
any of them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon the
guarantee of Guarantor set forth herein; and all dealings between Borrower or
Guarantor, on the one hand, and Lender, on the other, shall likewise be
conclusively presumed to have been had or consummated in reliance upon the
guarantee of Guarantor set forth herein. Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment and
all other notices of any kind to or upon Borrower or Guarantor with respect to
the Obligations. The guarantee of Guarantor set forth herein shall be construed
as a guarantee of payment, and not of collection.

         5. The guarantee set forth herein shall remain in full force and effect
and be binding in accordance with and to the extent of its terms upon Guarantor
and its successors and permitted assigns, and shall inure to the benefit of
Lender, and its respective successors, endorsees, transferees and assigns, until
all the Obligations and the obligations of Guarantor under the guarantee shall
have been satisfied by payment in full.

         6. The guarantee set forth herein shall continue to be effective, or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Obligations is rescinded or must otherwise be restored or returned by
Lender for any reason whatsoever, including, without limitation, upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of Guarantor
or Borrower or upon or as a result of the appointment of a receiver,

                                      B-2
<Page>

intervenor or conservator of, or trustee or similar officer for, Borrower or
Guarantor or any substantial part of its property, or otherwise, all as
though the payments had not been made.

         7. All payments due hereunder shall be paid in immediately available
funds after demand no later than 1:00 P.M. on the second Business Day following
the date of such demand. Demand shall be made in writing to Guarantor's office
located at One Mack Centre Drive, Paramus, New Jersey 07652, or such other
address in the United States which may be designated by Guarantor by written
notice delivered to Lender.

         8. To the full extent permitted by law, Guarantor hereby waives all
rights of subrogation, contribution, reimbursement, indemnity or otherwise,
whether arising by contract or operation of law (including, without limitation,
any such right arising under the Bankruptcy Code) or otherwise by reason of any
payment or performance by Guarantor pursuant to the provisions of this
Guarantee. Without limitation to the foregoing, notwithstanding any payment or
payments made by Guarantor hereunder or any setoff or application of funds of
Guarantor by Lender, Guarantor shall not be entitled to be subrogated to any of
the rights of Lender against Borrower or any collateral security or guarantee or
right of offset held by Lender for the payment of the Obligations, nor shall
Guarantor seek or be entitled to seek any contribution or reimbursement from
Borrower in respect of payments made by Guarantor hereunder, until all amounts
owing to Lender by Borrower and Guarantor on account of the Obligations are paid
in full. If any amount shall be paid to Guarantor on account of the subrogation
rights at any time when all of the Obligations shall not have been paid in full,
the amount shall be held by Guarantor in trust for Lender, segregated from other
funds of Guarantor, and shall forthwith upon receipt by Guarantor, be turned
over to Lender in the exact form received by Guarantor (duly endorsed by
Guarantor to Lender, if required), to be applied against the Obligations,
whether matured or unmatured, at the time and in the order as Lender may
determine. Notwithstanding the foregoing, Guarantor may request reimbursement
from Borrower to the extent permitted pursuant to Section 9.16(a) of the
Agreement.

         9. As further security for this Guarantee, Guarantor hereby grants a
first priority security interest in and transfers and assigns to Lender (a) any
and all interest, if any, it may now or hereafter have in the Collateral until
it has been sold or otherwise disposed of by Lender, and (b) all claims and
demands, presently existing or hereafter accrued thereon, and any and all
collateral or security Guarantor now has or may hereafter have or acquire
against Borrower with respect to the Collateral or any of them with full right
on the part of Lender in its own name or in the name of Guarantor to collect and
enforce such claims by legal action, proof of debt in bankruptcy or other
liquidation proceedings, and to vote in any proceedings for the arrangement of
debts at any time proposed, and Guarantor hereby irrevocably appoints Lender as
attorney-in-fact for Guarantor for the purpose of such enforcement and for the
purpose of endorsing in the name of Guarantor any Collateral for the payment of
money.

         10. In the event that any representation or warranty made by Borrower
or by Guarantor in the Agreement or any Basic Document to which it is a party
shall be false or misleading in any material respect, there shall be immediately
due from Guarantor to Lender the

                                      B-3
<Page>

loss, out-of-pocket cost, damage or out-of-pocket expense incurred by Lender
by reason of such representation or warranty being false or misleading in any
material respect.

         11. In the event that Lender for any reason whatsoever shall deem it
necessary to enforce this Guarantee or any rights hereunder or otherwise, there
shall be immediately due from Guarantor to Lender, all losses, out-of-pocket
costs, damages, out-of-pocket expenses, claims and liabilities associated with
such enforcement, including but not limited to, reasonable outside attorneys'
fees and out-of-pocket disbursements, together with all reasonable out-of-pocket
costs and out-of-pocket expenses of any related action.

         12. Guarantor hereby covenants that it shall not assign this Guarantee
except with the prior written consent of Lender, which consent shall not be
unreasonably withheld.

         13. Guarantor represents and warrants to Lender that each of the
representations and warranties made by it in the Agreement is true and correct.

         14. The obligations of Guarantor under this Guarantee are irrevocable,
primary, absolute and unconditional and shall be paid or performed strictly in
accordance with this Guarantee under all circumstances irrespective of:

         (a) any lack of validity or enforceability of the Agreement, the AMC
Guarantee or any of the Collateral, or any amendment, other modification or
waiver in respect thereof;

         (b) any exchange or release of any other obligations hereunder;

         (c) the existence of any claim, set-off, defense, reduction, abatement
or other right that Lender or Borrower may have at any time against Borrower,
Guarantor or any other person;

         (d) any document presented in connection with this Guarantee proving to
be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;

         (e) any payment by Guarantor under this Guarantee against presentation
of a certificate or other document that does not strictly comply with terms of
this Guarantee; and

         (f) any other circumstances, other than payment in full, that might
otherwise constitute a defense available to, or discharge of, Borrower in
respect of the Agreement.

         15. Neither the failure of Borrower or Lender to perform any covenant
or obligation in favor of Guarantor nor the failure or omission to make a demand
permitted hereunder shall in any way affect or limit Guarantor's obligations
under this Guarantee. If an action or proceeding to enforce this Guarantee is
brought, the beneficiary shall be entitled to recover from Guarantor costs and
expenses reasonably incurred, including without limitation reasonable fees and
expenses of counsel and out-of-pocket costs.

                                      B-4
<Page>

         16. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK. Communications with respect to this
Guarantee other than requests for payment pursuant to a notice referred to in
the preceding paragraph shall also be addressed to Guarantor at One Mack Centre
Drive, Paramus, New Jersey 07652, specifically referring to this Guarantee.

         17. EACH PARTY HERETO HEREBY WAIVES THE RIGHT OF TRIAL BY JURY IN ANY
LITIGATION ARISING HEREUNDER AND ALSO WAIVES THE RIGHT IN ANY SUCH LITIGATION,
TO IMPOSE COUNTERCLAIMS OR SET-OFFS OF ANY KIND OR DESCRIPTION UNLESS SUCH
COUNTERCLAIM OR SET-OFF IS COMPULSORY OR MANDATORY IN NATURE UNDER THE NEW YORK
CIVIL PRACTICE LAW AND RULES. EACH PARTY HERETO FURTHER SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY
FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
GUARANTEE OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN
SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN ANY SUCH PROCEEDING PERSONALLY DELIVERED OR TRANSMITTED BY
REGISTERED MAIL TO THE ADDRESS SET FORTH ABOVE; PROVIDED THAT UPON ANY SUCH
SERVICE BY REGISTERED MAIL THE SENDING PARTY SHALL, SIMULTANEOUSLY THEREWITH,
SEND NOTICE OF SUCH SERVICE TO THE OTHER PARTY VIA FACSIMILE TRANSMISSION.
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

                                      B-5
<Page>

         Any notice hereunder shall be in writing and shall be personally
delivered, transmitted by postage prepaid registered mail, by facsimile,
telegram or cable to the parties at the address for notices set forth in the
Agreement. All notices and other communications shall be deemed to have been
duly given on the date of receipt if delivered personally; the date five (5)
calendar days after posting if transmitted by mail; or in the case of a
facsimile, telegram or cable, at the time sent. Either party may change its
address for purposes hereof by notice to the other.

LONG BEACH ACCEPTANCE CORP., Guarantor

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

AGREED AND ACCEPTED:
-------------------

GREENWICH CAPITAL FINANCIAL PRODUCTS, INC., Lender

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

                                      B-6
<Page>

                                                                       EXHIBIT C

                                                                 AUGUST 12, 1999

                             [FORM OF AMC GUARANTEE]

Greenwich Capital Financial Products, Inc.
600 Steamboat Road
Greenwich, Connecticut 06830

         Re: Guarantee by Ameriquest Mortgage Company of Long Beach Acceptance
             Corp. Guarantee Dated as of August 12, 1999
             --------------------------------------------

Ladies and Gentlemen:

         1. For value received and in accordance with the terms of (i) the
Credit and Security Agreement, dated as of August 12, 1999 (the "AGREEMENT"),
among Greenwich Capital Financial Products, Inc., as Lender ("LENDER"), Long
Beach Acceptance Receivables Corp., as Borrower ("BORROWER") and Long Beach
Acceptance Corp., as Guarantor ("LBAC"), and (ii) the Guarantee dated August 12,
1999 made by LBAC in favor of Lender (the "LBAC GUARANTEE"), Ameriquest Mortgage
Company, a Delaware corporation ("AMC"), hereby unconditionally and irrevocably
guarantees to Lender, or any successor in interest of Lender, the due, punctual
and complete payment and performance by LBAC when and as due, whether at the
stated maturity, by acceleration, upon one or more dates set for repayment or
prepayment or otherwise, of the LBAC Obligations. For purposes of this
guarantee, "LBAC OBLIGATIONS" shall mean any and all Obligations of LBAC to
Lender under the Agreement and the LBAC Guarantee. Lender may make demands under
this guarantee for such amounts and performance from time to time. AMC hereby
represents that its obligations hereunder do and shall rank PARI PASSU with all
unsecured and unsubordinated indebtedness of AMC, as applicable. Terms used and
not defined herein shall have the meanings assigned in the Agreement.

         2. Payments and performance required under this guarantee shall be
payable and performed whenever any amount or performance guaranteed hereunder
has not been promptly made to Lender in accordance with the Agreement and the
LBAC Guarantee. When pursuing its rights and remedies hereunder against AMC,
Lender may, but shall be under no obligation to, pursue the rights, remedies,
powers and privileges as it may have against Borrower, LBAC or any other Person
or against any collateral security or guarantee for the LBAC Obligations or any
right of offset with respect thereto. Any failure by Lender to pursue the other
rights, remedies, powers or privileges or to collect any payments from Borrower,
LBAC or any other Person or to realize upon any collateral security or guarantee
or to exercise any right of offset, or any release of Borrower, LBAC or any
other Person or of any of the collateral security, guarantee or right of

                                      C-1
<Page>

offset, shall not relieve AMC of any liability hereunder, and shall not
impair or affect the rights, remedies, powers or privileges, whether express,
implied or available as a matter of law, of Lender against AMC.

         3. AMC shall remain obligated hereunder notwithstanding that, without
any reservation of rights against AMC, and without notice to or further assent
by AMC, any demand for payment of any of the LBAC Obligations made by Lender may
be rescinded by Lender, and any of the LBAC Obligations continued, and the LBAC
Obligations, or the liability of any other Person upon or for any part thereof,
or any collateral security or guarantee therefor or right of offset with respect
thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by
Lender, and the LBAC Guarantee or the Agreement and any other documents executed
and delivered in connection therewith may be amended, modified, supplemented or
terminated in accordance with the terms thereof, in whole or in part, as Lender
may deem advisable from time to time, and any collateral security, guarantee or
right of offset at any time held by Lender for the payment of the LBAC
Obligations may be sold, exchanged, waived, surrendered or released. Lender
shall have no obligation to protect, secure, perfect or insure any Lien at any
time held by it as security for the LBAC Obligations or for the guarantee set
forth herein or any property subject thereto. When making any demand hereunder
against AMC, Lender may, but shall be under no obligation to, make a similar
demand on Borrower, LBAC or any other guarantor and any release of Borrower,
LBAC or any other guarantor shall not relieve any of its obligations or
liabilities hereunder, and shall not impair or affect the rights, remedies,
powers and privileges, express or implied, or as a matter of law, of Lender
against AMC.

         4. AMC waives any and all notice of the creation, renewal, extension or
accrual of any of the LBAC Obligations and notice of or proof of reliance by
Lender upon the guarantee of AMC set forth herein or acceptance of the guarantee
of AMC set forth herein; the LBAC Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee of AMC set forth
herein; and all dealings between LBAC or AMC, on the one hand, and Lender, on
the other, shall likewise be conclusively presumed to have been had or
consummated in reliance upon the guarantee of AMC set forth herein. AMC waives
diligence, presentment, protest, demand for payment and notice of default or
nonpayment and all other notices of any kind to or upon LBAC or AMC with respect
to the LBAC Obligations. The guarantee of AMC set forth herein shall be
construed as a guarantee of payment, and not of collection.

         5. The guarantee set forth herein shall remain in full force and effect
and be binding in accordance with and to the extent of its terms upon AMC and
its successors and permitted assigns, and shall inure to the benefit of Lender,
and its respective successors, endorsees, transferees and assigns, until all the
LBAC Obligations and the obligations of AMC under this guarantee shall have been
satisfied by payment in full. Notwithstanding Section 2.10 of the Agreement, the
obligations of AMC under this guarantee shall be fully recourse to AMC and all

                                      C-2
<Page>

property and assets of AMC whether now owned or hereinafter acquired, and AMC
shall remain liable for all of the LBAC Obligations pursuant to the terms of
this guarantee.

         6. The guarantee set forth herein shall continue to be effective, or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the LBAC Obligations is rescinded or must otherwise be restored or
returned by Lender for any reason whatsoever, including, without limitation,
upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
LBAC or AMC or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, LBAC or AMC or any
substantial party of its property, or otherwise, all as though the payments had
not been made.

         7. All payments due hereunder shall be paid in immediately available
funds after demand no later than 1:00 P.M. on the second Business Day following
the date of such demand. Demand shall be made in writing to AMC's office located
at 1100 Town and Country Road, Orange, CA 92868, Attention: General Counsel or
such other address in the United States which may be designated by AMC by
written notice delivered to Lender.

         8. To the full extent permitted by law, AMC hereby waives all rights of
subrogation, contribution, reimbursement, indemnity or otherwise, whether
arising by contract or operation of law (including, without limitation, any such
right arising under the Bankruptcy Code) or otherwise by reason of any payment
or performance by AMC pursuant to the provisions of this guarantee. Without
limitation to the foregoing, notwithstanding any payment or payments made by AMC
hereunder or any setoff or application of funds of AMC by Lender, AMC shall not
be entitled to be subrogated to any of the rights of Lender against or any
collateral security or guarantee or right of offset held by Lender for the
payment of the LBAC Obligations, nor shall AMC seek or be entitled to seek any
contribution or reimbursement from LBAC in respect of payments made by AMC
hereunder, until all amounts owing to Lender by LBAC on account of the LBAC
Obligations are paid in full. If any amount shall be paid to AMC on account of
the subrogation rights at any time when all of the LBAC Obligations shall not
have been paid in full, the amount shall be held by AMC in trust for Lender,
segregated from other funds of AMC, and shall forthwith upon receipt by AMC, be
turned over to Lender in the exact form received by AMC (duly endorsed by AMC to
Lender, if required), to be applied against the LBAC Obligations, whether
matured or unmatured, at the time and in the order as Lender may determine.
Notwithstanding the foregoing, AMC may request reimbursement from Borrower or
Guarantor to the extent permitted pursuant to Section 9.16(b) of the Agreement.

                  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, AMC
EXPRESSLY WAIVES ANY AND ALL BENEFITS UNDER CALIFORNIA CIVIL CODE SECTIONS 2809,
2810, 2819, 2845, 2849, 2850, AND 2855, CALIFORNIA CODE OF CIVIL PROCEDURE
SECTIONS 580A, 580B, 580D, AND 726, AND ANY OTHER SURETYSHIP OR SIMILAR LAW OR
DEFENSE NOW OR HEREAFTER IN EFFECT.

                                      C-3
<Page>

         9. AMC hereby represents and warrants to Lender as of the date of this
guarantee and on an ongoing basis on each date that the LBAC Obligations are
outstanding as follows:

         (a) ORGANIZATION. It is a corporation duly incorporated and validly
existing in good standing under the laws of the State of Delaware and is duly
qualified to do business in each jurisdiction in which the failure to be so
qualified could reasonably be expected to have a material adverse effect on its
financial condition, operations, business or prospects.

         (b) POWER AND AUTHORITY. It has all requisite corporate power and has
all material governmental licenses, authorizations, consents and approvals
necessary to own its assets and carry on its business as now being conducted and
to execute and deliver and perform its obligations under this guarantee, except
as could not reasonably be expected to have a material adverse effect on its
financial condition, operations, business or prospects.

         (c) AUTHORIZATION OF GUARANTEE. All appropriate and necessary action
has been taken by it to authorize the execution and delivery of this guarantee
and the performance and observance of the terms hereof.

         (d) GUARANTEE BINDING. This guarantee has been duly executed and
delivered and constitutes its legal, valid and binding obligation, enforceable
in accordance with its terms, except as enforceability may be limited by laws
governing insolvency or creditors' rights generally and general equity
principles. The execution, delivery and performance of this guarantee does not
and will not violate any provision of law, regulation, order or other
governmental directive, or conflict with, constitute a default under, or result
in the breach of any provision of any material agreement, ordinance, decree,
bond, indenture, order or judgment to which it is a party or by which it is
bound.

         (e) COMPLIANCE WITH LAW. It is conducting its business and operations
in compliance with all applicable laws, regulations, ordinances and directives
of governmental authorities, except to the extent that any noncompliance could
not reasonably be expected to have a material adverse effect on its financial
condition, operation, business or prospects. It has filed all tax returns
required to be filed and has paid all taxes due in respect of the ownership of
its assets or the conduct of its operations except (a) to the extent that the
payment of such taxes is being contested in good faith by it in appropriate
proceedings and adequate reserves have been provided for the payment thereof, or
(b) with respect to such returns and/or taxes which are not material in either
nature or amount such that any failure to file such returns or pay such taxes
would not materially and adversely affect its financial condition, operations,
business or prospects.

         (f) CONSENTS. All licenses, consents and approvals required from and
all registrations and filings required to be made with any governmental or other
public body or authority for the making and performance by it of this guarantee
have been obtained and are in effect, except as could not reasonably be expected
to have a material adverse effect on its

                                      C-4
<Page>

financial condition, operations, business or prospects or on its ability to
perform the obligations hereunder.

         (g) LITIGATION. There is no action, suit or proceeding at law or in
equity by or before any court, governmental agency or authority or arbitral
tribunal now pending or, to the best of its knowledge, threatened against or
affecting it which, if determined adversely, may reasonably be expected to have
a material adverse effect on its business, operations or financial condition.

         (h) FINANCIAL STATEMENTS. The unaudited balance sheets of AMC as at
March 31, 1999, and the related statements of income for the fiscal periods
ended on such date, heretofore furnished to Lender, are complete and correct in
all material respects and fairly present the financial condition of AMC as at
said date (subject to normal year-end audit adjustments and tax planning
adjustments), all in accordance with U.S. generally accepted accounting
principles applied on a consistent basis. On said date, AMC had no material
contingent liabilities, liabilities for taxes, unusual or anticipated losses
from any unfavorable commitments, except as referred to or reflected in said
balance sheets as at said date. Since March 31, 1999, there has been no material
adverse change in the operations, condition (financial or otherwise), business
or prospects of AMC from that set forth in said financial statements as at said
date.

         (i) OTHER OBLIGATIONS. It is not in default in the performance,
observance or fulfillment of any obligation, covenant or condition in any of the
Basic Documents or in any agreement or instrument to which it is a party or by
which it is bound the result of which could reasonably be expected to have a
material adverse effect on its business, operations or financial condition.

         (j) INVESTMENT COMPANY ACT. It is not an "investment company" or a
company "controlled" by an investment company within the meaning of the
Investment Company Act of 1940, as amended.

         (k) FULL DISCLOSURE. No representation or warranty made by or on behalf
of AMC contained in this guarantee and no written information or information in
any certificate, financial statement or report furnished or to be furnished by
or on behalf of AMC hereunder or in connection with the transactions
contemplated hereby contains or will contain an untrue statement of a material
fact, or, omits or will omit to state any material fact necessary to make the
statements herein or therein contained, in light of the circumstances in which
made, not misleading.

         (l) ERISA. Set forth on Schedule 9(l) hereto is a list of all Plans, if
any, maintained by AMC or any of its subsidiaries. Except as may be set forth on
such schedule, neither AMC nor any of its subsidiaries maintains any Plans, and
AMC agrees to notify Lender in advance of forming any Plans. Neither AMC nor any
Commonly Controlled Entity has any obligations or liabilities with respect to
any employee pension benefit plans or Multiemployer

                                      C-5
<Page>

Plans, nor have any such Persons had any obligations or liabilities with
respect to any such Plans during the five-year period prior to the date this
representation is made or deemed made. AMC will give notice if at any time it
or any Commonly Controlled Entity has any obligations or liabilities with
respect to any employee pension benefit plan or Multiemployer Plan. All Plans
maintained by AMC or any Commonly Controlled Entity are in substantial
compliance with all applicable laws (including ERISA). AMC is not an employer
under any Multiemployer Plan.

         (m) BASIC DOCUMENTS. Each of the representations and warranties made by
it in (i) the AMC Guarantee, dated as of August 1, 1999, made by AMC in favor of
Financial Security Assurance Inc. and The Chase Manhattan Bank and (ii) the
Guarantee, dated as of August 1, 1999, made by AMC in favor of Greenwich Capital
Markets, Inc., relating to the Note Purchase Agreement, dated August 12, 1999,
among Borrower, Guarantor and Lender, is true and correct; PROVIDED that this
representation shall not be deemed to have been breached if AMC shall have
breached a representation or warranty in either such document but shall have
cured such breach within the applicable cure period, if any, set forth therein.

         10. AMC hereby covenants as follows:

         (a)  NOTICE. It shall promptly give notice to Lender of the
occurrence of (i) any Event of Default relating to it under the Agreement or
event which with the giving of notice or the passing of time or both would
constitute such an Event of Default relating to it, specifying the event and the
action which it proposes to take with respect thereto, (ii) any event or
occurrence known to it which will or could reasonably be expected to adversely
affect the collectibility of the Receivables or the ability of LBAC to service
such Receivables or the ability of AMC to perform its obligations under any
related documents or (iii) any other event or occurrence which individually or
in the aggregate could reasonably be expected to materially and adversely affect
AMC's financial condition, operations, business or prospects.

         (b) TAXES. AMC shall pay and discharge all taxes and governmental
charges upon it or against any of its properties or assets or its income prior
to the date after which penalties attach for failure to pay, except (i) to the
extent that AMC shall be contesting in good faith in appropriate proceedings its
obligation to pay such taxes or charges, adequate reserves having been set aside
for the payment thereof, or (ii) with respect to such taxes and charges which
are not material in either nature or amount such that any failure to pay or
discharge them, and any resulting penalties, either in any one instance or in
the aggregate, would not materially and adversely affect the financial
condition, operations, business or prospects of AMC.

         (c) BOOKS AND RECORDS; OTHER INFORMATION. (i) AMC shall maintain
accurate and complete books and records with respect to its business. All
accounting books and records shall be maintained in accordance with generally
accepted accounting principles consistently applied.

         (ii) Only to the extent reasonably necessary to protect Lender's
interest hereunder, AMC shall, and shall cause each of its respective
subsidiaries to, permit any

                                      C-6
<Page>

representative of Lender to visit and inspect any of the properties of AMC to
examine the books and records of AMC and to make copies and take extracts
therefrom, and to discuss the business, operations, properties, condition
(financial or otherwise) or prospects of AMC and each such subsidiary with
the officers and independent public accountants thereof and as often as
Lender may reasonably request, and so long as no default hereunder shall have
occurred and be continuing, all at such reasonable times during normal
business hours upon reasonable notice. AMC shall provide to Lender all
information regarding its respective operations and practices as Lender shall
reasonably request in writing. In connection with the matters described in
this Section 10(c), Lender shall not at any time use or disclose to any
Person, except to any professional adviser who needs to know such information
in connection with the transactions contemplated hereby, or except in
connection with any litigation or arbitral proceedings commenced by or
against Lender or any of its affiliates, any information that may be within
or may come to its or their knowledge if such information is of a type that
would generally be expected to be held as confidential; PROVIDED that the
foregoing shall not apply to the extent that such information was (i)
previously known by Lender from sources other than AMC or its directors,
officers or agents, (ii) in the public domain through no fault of Lender,
(iii) lawfully acquired by Lender on a non-confidential basis from other
sources who are not known by Lender to be bound by a confidentiality
agreement with AMC or (iv) required to be disclosed by judicial or
administrative process or by any other Requirement of Law.

         (d) PAYMENT OF FEES AND EXPENSES. AMC shall pay to Lender, on demand,
any and all fees, costs or expenses which Lender pays to a bank or other similar
institution arising out of or in connection with the return of payments by AMC
deposited for collection by Lender.

         (e) CONTINUITY OF BUSINESS AND COMPLIANCE WITH AGREEMENT. AMC shall
continue in business in a prudent, reasonable and lawful manner with all
licenses, permits, and qualifications necessary to perform its obligations under
this guarantee, except where failure to do so could not reasonably be expected
to materially and adversely affect such performance.

         (f) FINANCIAL STATEMENTS AND ACCESS TO RECORDS. AMC shall provide
Lender with quarterly unaudited financial statements within sixty (60) days of
the end of AMC's first three fiscal quarters, and will provide Lender with
audited annual financial statements within one hundred twenty (120) days of
AMC's fiscal year-end audited by a nationally recognized independent certified
public accounting firm. Upon request of Lender, AMC shall provide Lender with
unaudited monthly financial statements. AMC shall deliver to Lender with each
financial statement a certificate by AMC's chief financial officer, certifying
that such financial statements are complete and correct in all material respects
and that, except as noted in such certificate, such chief financial officer has
no knowledge of any default by it hereunder or any event which with the giving
of notice or the passing of time or both would constitute such a default.

                                      C-7
<Page>

         (g) FINANCIAL CONDITION. AMC shall maintain a net worth of at least 95%
of the net worth AMC is required to maintain pursuant to the credit documents
AMC has entered into with its primary warehouse lender (which on the date hereof
is Chase Bank of Texas, National Association) (net worth, in each case, being
calculated in accordance with such credit documents); PROVIDED that, if such
credit documents are terminated and AMC does not have a primary warehouse
lender, the reference to such credit documents will be deemed to be to such
credit documents as in effect immediately prior to such termination. AMC shall
maintain a debt-to-equity ratio of no more than 105% of the debt-to-equity ratio
AMC is required to maintain pursuant to the credit documents AMC has entered
into with its primary warehouse lender (which on the date hereof is Chase Bank
of Texas, National Association) (debt-to-equity, in each case, being calculated
in accordance with such credit documents); PROVIDED that, if such credit
documents are terminated and AMC does not have a primary warehouse lender, the
reference to credit documents AMC has entered into with its primary warehouse
lender will be deemed to be to such credit documents as in effect immediately
prior to such termination.

         (h) LITIGATION MATTERS. AMC shall notify Lender in writing, promptly
upon its learning thereof, of any litigation, arbitration or administrative
proceeding which may reasonably be expected to materially and adversely affect
the operations, financial condition or business of AMC or AMC's ability to
perform under this guarantee or other rights under this guarantee.

         (i) FULFILLMENT OF OBLIGATIONS. AMC shall pay and perform, as and when
due, all of its obligations of whatever nature, except where the amount or
validity thereof is currently being contested in good faith by appropriate
proceedings and reserves in conformity with generally accepted accounting
principles with respect thereto have been provided on the books of AMC, and
except to the extent that the failure to do so could not individually or in the
aggregate reasonably be expected to materially and adversely affect the
financial condition, operations, business or prospects of AMC.

         (j) COMPLIANCE WITH LAWS, ETC. AMC shall, and shall cause each of its
respective subsidiaries to, comply (i) in all material respects with all
Requirements of Law and any change therein or in the application, administration
or interpretation thereof (including, without limitation any request, directive,
guideline or policy, whether or not having the force of law) by any Governmental
Authority charged with the administration or interpretation thereof; and (ii)
with all indentures, mortgages, deeds of trust, agreements, or other instruments
or contractual obligations to which it is a party, including without limitation,
each Basic Document to which it is a party, or by which it or any of its
properties may be bound or affected, or which may affect the Receivables, if the
failure to comply therewith could, individually or in the aggregate, reasonably
be expected to materially and adversely affect the financial condition,
operations, business or prospects of AMC.

         (k) NO ASSIGNMENT. Except in connection with an assignment to any
successor that complies with Section 15 hereof, AMC shall not assign this
guarantee, except with the prior written consent of Lender, which consent shall
not be unreasonably withheld.

                                      C-8
<Page>

         (l) VALUATION MODEL. AMC expressly accepts and acknowledges, and agrees
to comply with and be bound by, the provisions of Section 3.13 of the Agreement.

         11. The obligations of AMC under this guarantee are irrevocable,
primary, absolute and unconditional and shall be paid or performed strictly in
accordance with this guarantee under all circumstances irrespective of:

         (a) any lack of validity or enforceability of the Agreement, the LBAC
Guarantee or of any of the Collateral, or any amendment, other modification or
waiver in respect thereof;

         (b) any exchange or release of any other obligations hereunder;

         (c) the existence of any claim, set-off, defense, reduction, abatement
or other right that Lender, Borrower or LBAC may have at any time against any of
Borrower, LBAC, AMC or any other person;

         (d) any document presented in connection with the Agreement, the LBAC
Guarantee or this guarantee proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate
in any respect;

         (e) any payment by AMC under this guarantee against presentation of a
certificate or other document that does not strictly comply with terms of this
guarantee; and

         (f) any other circumstances, other than payment in full, that might
otherwise constitute a defense available to, or discharge of, Lender, Borrower
or LBAC in respect of the Agreement or the LBAC Guarantee.

         12. Neither the failure of Borrower, Lender or LBAC to perform any
covenant or obligation in favor of AMC nor the failure or omission to make a
demand permitted hereunder shall in any way affect or limit AMC's obligations
under this guarantee.

         13. AMC agrees to:

         (i) pay or reimburse Lender on demand for all its reasonable
         out-of-pocket costs and expenses incurred in connection with the
         development, preparation and execution of, and any amendment,
         modification or supplement to, or any waiver under, this guarantee, the
         LBAC Guarantee and any other document prepared in connection therewith,
         and the consummation and administration of the transactions
         contemplated thereby, including without limitation the reasonable fees
         and disbursements of counsel to Lender;

         (ii) pay on demand all reasonable costs and expenses of Lender,
         including without limitation the reasonable fees and disbursements of
         counsel to Lender, in

                                      C-9
<Page>

         connection with the occurrence or continuance of a default under
         this guarantee and the LBAC Guarantee and the enforcement,
         collection, protection or preservation (whether through
         negotiations, legal proceedings or otherwise) of this guarantee,
         any LBAC Obligation or any right, remedy, power or privilege of
         Lender hereunder or under the LBAC Guarantee;

         (iii) pay and hold Lender harmless from and against any and all present
         and future stamp, excise, recording or other similar taxes or fees
         payable in connection with the execution, delivery, recording and
         filing of this guarantee or the LBAC Guarantee and hold Lender harmless
         from and against any and all liabilities with respect to or resulting
         from any delay or omission to pay such taxes or fees; and

         (iv) indemnify Lender and its affiliates and each of their respective
         directors, officers, employees and agents and hold each of them
         harmless from and against, any and all liabilities, losses, damages,
         penalties, actions, judgments, suits, claims, costs, expenses and
         disbursements, including without limitation the reasonable fees and
         disbursements of counsel to Lender and such other parties, incurred by
         any of them in connection with, arising out of or in any way relating
         to any investigation, claim, litigation or other proceeding, pending or
         threatened (whether or not any of them is designated a party thereto),
         in connection with, arising out of or in any way related to this
         guarantee or the LBAC Guarantee or any of the transactions contemplated
         herein or therein; PROVIDED that Lender shall not be entitled to any
         indemnification for any of the foregoing resulting from its gross
         negligence or willful misconduct.

If and to the extent that the indemnity obligations of AMC under this Section 13
may be unenforceable for any reason, AMC hereby agrees to make the maximum
contribution to the payment and satisfaction of each of such indemnity
obligations which is permissible under applicable law.

         14. In addition to any rights now or hereafter granted under applicable
law and not by way of limitation of any such rights, during the continuance of
any default under this guarantee or the LBAC Guarantee Lender is hereby
authorized at any time and from time to time, without notice to AMC or to any
other person or entity, any such notice being hereby expressly waived, to
set-off against any obligation owing by Lender or any affiliate of Lender to
LBAC or AMC, or against any funds or other property of LBAC or AMC held by or
otherwise in the possession of Lender or any affiliate of Lender, the LBAC
Obligations and the obligations and liabilities of AMC to Lender hereunder,
irrespective of whether or not Lender shall have made any demand hereunder or
under the LBAC Guarantee.

         15. Any Person (i) into which AMC may be merged or consolidated, (ii)
resulting from any merger or consolidation to which AMC is a party or (iii)
succeeding to all or

                                      C-10
<Page>

substantially all of the business of AMC shall execute an agreement of
assumption to perform every obligation of AMC under this guarantee, and
whether or not such assumption agreement is executed, shall be the successor
to AMC hereunder (without relieving AMC of its responsibilities hereunder, if
it survives such merger or consolidation) without the execution or filing of
any document or any further act by any of the parties to this guarantee.

         16. Each party shall, from time to time after execution of this
guarantee and without further consideration, execute such documents or take such
action as may be reasonably necessary to carry out the purpose or intention of
this guarantee.

         17. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK. Communications with respect to this
guarantee other than requests for payment pursuant to a notice referred to in
the preceding paragraph shall also be addressed to AMC at 1100 Town and Country
Road, Orange, CA 92868, Attention: General Counsel, specifically referring to
this guarantee.

         18. EACH PARTY HERETO HEREBY WAIVES THE RIGHT OF TRIAL BY JURY IN ANY
LITIGATION ARISING HEREUNDER AND ALSO WAIVES THE RIGHT IN ANY SUCH LITIGATION,
TO IMPOSE COUNTERCLAIMS OR SET-OFFS OF ANY KIND OR DESCRIPTION UNLESS SUCH
COUNTERCLAIM OR SET-OFF IS COMPULSORY OR MANDATORY IN NATURE UNDER THE NEW YORK
CIVIL PRACTICE LAW AND RULES. EACH PARTY HERETO FURTHER SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY
FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
GUARANTEE OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN
SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN ANY SUCH PROCEEDING PERSONALLY DELIVERED OR TRANSMITTED BY
REGISTERED MAIL TO THE ADDRESS SET FORTH ABOVE; PROVIDED THAT UPON ANY SUCH
SERVICE BY REGISTERED MAIL THE SENDING PARTY SHALL, SIMULTANEOUSLY THEREWITH,
SEND NOTICE OF SUCH SERVICE TO THE OTHER PARTY VIA FACSIMILE TRANSMISSION.
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

                                      C-11
<Page>

         Any notice hereunder shall be in writing and shall be personally
delivered, transmitted by postage prepaid registered airmail, by facsimile,
telegram or cable to the parties at the address for notices set forth in the
Agreement. All notices and other communications shall be deemed to have been
duly given on the date of receipt if delivered personally; the date five (5)
calendar days after posting if transmitted by mail; or in the case of a
facsimile, telegram or cable, at the time sent. Either party may change its
address for purposes hereof by notice to the other.

AMERIQUEST MORTGAGE COMPANY

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

AGREED AND ACCEPTED:
-------------------

GREENWICH CAPITAL FINANCIAL PRODUCTS, INC., Lender

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

                                      C-12
<Page>
                                                                   SCHEDULE 9(l)

                                      PLANS

                  Ameriquest Mortgage Company 401(k) Plan
                  PPO/HMO Health Plan
                  Dental Plan
                  Vision Service Plan
                  Short and Long Term Disability Plan
                  Company Paid Life & AD&D
                  Dependent Care Reimbursement Plan
                  Health Care Spending Account

<Page>

                                                                       EXHIBIT D

                                   [Reserved]

                                      D-1
<Page>

                                                                       EXHIBIT E

                       [FORM OF OPINION OF COUNSEL TO THE
                          BORROWER AND EACH GUARANTOR]*

                                     August 12, 1999

Greenwich Capital Financial Products, Inc.
600 Steamboat Road
Greenwich, Connecticut 06830

         Re:   Credit and Security Agreement, dated as of August 12, 1999, by
               and among Greenwich Capital Financial Products, Inc., as Lender,
               Long Beach Acceptance Receivables Corp., as Borrower and Long
               Beach Acceptance Corp., as Guarantor
               -------------------------------------

Ladies and Gentlemen:

         We have acted as special counsel to Long Beach Acceptance Receivables
Corp., a Delaware corporation (the "BORROWER"), Long Beach Acceptance Corp., a
Delaware corporation ("LBAC") and Ameriquest Mortgage Company, a Delaware
corporation ("AMC") in connection with the preparation, execution and delivery
of:

         (a) the Credit and Security Agreement, dated as of August 12, 1999 (the
         "CREDIT AND SECURITY AGREEMENT"), by and among Greenwich Capital
         Financial Products, Inc. (the "LENDER"), Borrower and LBAC, as
         Guarantor;

         (b) the Promissory Note (as defined in the Credit and Security
         Agreement);

         (c) the Guarantee, dated August 12, 1999 (the "LBAC GUARANTEE"), made
         by LBAC in favor of Lender; and

         (d) the Guarantee, dated August 12, 1999 (the "AMC GUARANTEE"), made by
         AMC in favor of Lender.

(the documents referred to in clauses (a) through (d), collectively, the
"DELIVERED DOCUMENTS").

--------------
* May be incorporated into such other opinions delivered by counsel to Borrower
and each Guarantor in connection with the Securitization Transaction.

                                      E-1
<Page>

         This opinion is being furnished to Lender at the request of Borrower,
LBAC and AMC.

         In rendering the opinions set forth herein, we have examined and are
familiar with originals or copies, certified or otherwise identified to our
satisfaction, of (i) the Delivered Documents, (ii) the articles of incorporation
and by-laws of each of Borrower, LBAC and AMC, each as in effect on the date
hereof, (iii) resolutions of the boards of directors of each of Borrower, LBAC
and AMC relating to each of the Delivered Documents adopted on or prior to the
date hereof, and (iv) such certificates of public officials and such other
certificates, documents, records, and statements of officers and other
representatives of Borrower, LBAC and AMC and public officials as we have deemed
appropriate or necessary as the basis for the opinions set forth below. As to
certain facts material to the opinions expressed herein, we have relied upon,
and assumed the accuracy of, (i) the representations and warranties contained in
the Delivered Documents, and (ii) the certificates and other documents, records
and statements referred to in the immediately preceding sentence. We have
assumed the genuineness of all signatures (other than those of Borrower, LBAC
and AMC), the legal capacity of all natural persons, the authenticity of all
documents submitted to us as originals, the conformity to original documents of
all documents submitted to us as certified or photostatic copies and the
authenticity of the originals of such copies. We have also assumed the due
execution and delivery, pursuant to due authorization, by Lender of the Credit
and Security Agreement.

         We are admitted to the bar in the State of New York and we express no
opinion as to the laws of any jurisdiction other than the laws of the State of
New York, the State of Delaware and the Federal securities laws of the United
States.

                  Based upon the foregoing, and subject to the qualifications
and exceptions stated herein, we are of the opinion that:

         1. Each of Borrower, LBAC and AMC (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation, (b) has the corporate power and authority to own and operate its
property, to lease the property it operates as lessee and to conduct the
business in which it is currently engaged, (c) is duly qualified as a foreign
corporation and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of property or the conduct of its business
requires such qualification, except, with respect to the preceding clause (c),
to the extent that the failure to be so qualified and in good standing would
not, in the aggregate, reasonably be expected to have a material adverse effect
on the business, operations, property or condition (financial or otherwise) or
prospects of Borrower, LBAC or AMC (a "MATERIAL ADVERSE EFFECT").

         2. Borrower has the corporate power and authority to execute, deliver
and perform each of the Credit and Security Agreement and the Promissory Note,
to borrow under the Credit and Security Agreement and the Promissory Note, and
to grant liens pursuant to the Credit and Security Agreement, and has taken all
necessary corporate action to authorize such borrowing, the granting of such
liens on the terms and subject to the conditions of the Credit and Security
Agreement, and the execution, delivery and performance of each of the Credit and
Security

                                      E-2
<Page>

Agreement and the Promissory Note. LBAC has the corporate power and authority
to execute, deliver and perform each of the Credit and Security Agreement and
the LBAC Guarantee, and has taken all necessary corporate action to authorize
the execution, delivery and performance of the Credit and Security Agreement
and the LBAC Guarantee. AMC has the corporate power and authority to execute,
deliver and perform the AMC Guarantee, and has taken all necessary corporate
action to authorize the execution, delivery and performance of the AMC
Guarantee.

         3. No consent or authorization of, filing with or other act by or in
respect of any governmental authority of or within the State of New York, the
State of California or the State of Delaware is required in connection with the
borrowing under the Credit and Security Agreement and the Promissory Note or
with the execution, delivery, performance, validity or enforceability of the
Delivered Documents, except for consents, authorizations and filings which have
been obtained or made, as the case may be, and are in full force and effect.

         4. Each of the Credit and Security Agreement and the Promissory Note
has been duly executed and delivered on behalf of Borrower and constitutes a
legal, valid and binding obligation of Borrower, enforceable against Borrower in
accordance with its terms, subject to the effect of (i) bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or transfer or other similar
laws relating to or affecting the rights of creditors and (ii) the application
of general principles of equity (regardless of whether enforceability is
considered in proceedings at law or in equity). Each of the Credit and Security
Agreement and the LBAC Guarantee has been duly executed and delivered on behalf
of LBAC and constitutes a legal, valid and binding obligation of LBAC,
enforceable against each LBAC in accordance with its terms, subject to the
effect of (i) bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or transfer or other similar laws relating to or affecting the rights
of creditors and (ii) the application of general principles of equity
(regardless of whether enforceability is considered in proceedings at law or in
equity). The AMC Guarantee has been duly executed and delivered on behalf of AMC
and constitutes a legal, valid and binding obligation of AMC, enforceable
against AMC in accordance with its terms, subject to the effect of (i)
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
transfer or other similar laws relating to or affecting the rights of creditors
and (ii) the application of general principles of equity (regardless of whether
enforceability is considered in proceedings at law or in equity).

         5. The execution, delivery and performance by each of Borrower, LBAC
and AMC of the Delivered Documents to which it is a party, the borrowing by
Borrower under the Credit and Security Agreement and the use of the proceeds
thereof, and the granting of liens by Borrower pursuant to the Credit and
Security Agreement, will not violate any Requirement of Law of the State of New
York, the State of California or in respect of the General Corporation Law of
the State of Delaware or Regulation G of the Board of Governors of the Federal
Reserve System, or, to the best of our knowledge, any of the material terms or
provisions of, or constitute a default under, any indenture, mortgage, loan
agreement, deed of trust or any other material agreement or instrument to which
Borrower, LBAC or AMC is a party or by which Borrower, LBAC or AMC is bound
(collectively, the "SPECIFIED AGREEMENTS"), and will not result in, or require,
the creation or imposition of any lien on any of either of their respective
properties or

                                      E-3
<Page>

revenues pursuant to any such Requirement of Law or Specified Agreement
(other than the liens created by the Credit and Security Agreement in favor
of Lender). As used herein "REQUIREMENT OF LAW" means the governing documents
of Borrower, LBAC or AMC, or any law, treaty, rule or regulation or
determination of an arbitrator or a court or other governmental authority, in
each case applicable to or binding upon, Borrower, LBAC or AMC or any of
their respective properties or to which Borrower, LBAC or AMC or any of their
respective properties is subject.

         6. No litigation or proceeding of or before any arbitrator or
governmental authority is pending or, to the best of our knowledge, threatened
by or against Borrower, LBAC, AMC or any of their respective subsidiaries or
against any of their respective properties or revenues (a) with respect to any
of the Delivered Documents or any of the transactions contemplated thereby, or
(b) which would reasonably be expected to have a Material Adverse Effect.

         7. Borrower is not (a) an "investment company", or a company
"controlled" by an "investment company", within the meaning of the Investment
Company Act of 1940, as amended or (b) a "holding company" within the meaning of
the Public Utility Holding Company Act of 1935, as amended.

         8. The provisions of the Credit and Security Agreement are effective to
create, in favor of Lender, a legal, valid and enforceable security interest in
all right, title and interest of Borrower in the "Collateral" described therein.

         9. Upon (i) delivery to Lender of the Pledged Securities, together with
a bond power for each Pledged Security endorsed in blank by a duly authorized
officer of Borrower, and (ii) the filing of financing statements in the form of
Annex A in the offices in the jurisdictions as listed on Schedule 1 hereto, the
security interests created under the Credit and Security Agreement will
constitute fully perfected first priority security interests in all right, title
and interest of Borrower in the "Collateral" described therein which can be
perfected by filing a financing statement under Article 9 of the Uniform
Commercial Code as in effect in the State of New York.

         10. The issuance of the Promissory Note, the LBAC Guarantee and the AMC
Guarantee to Lender pursuant to the Credit and Security Agreement are not
transactions requiring the registration of the Promissory Note, the LBAC
Guarantee or the AMC Guarantee under the Securities Act of 1933, as amended.

                                    * * *

                                      E-4
<Page>

         This opinion is rendered only to Lender is solely for its benefit in
connection with the above transactions and may not be relied upon by Lender
for any other purpose, relied upon by any other person, firm or corporation
for any purpose without our prior written consent.

                                       Very truly yours,

                                      E-5
<Page>

                                                                       EXHIBIT F

                                   [Reserved]

                                      F-1
<Page>

                                                                       EXHIBIT G

Credit and Security Agreement dated as of March 31, 1997 by and among Greenwich
Capital Financial Products, Inc., as lender, Long Beach Acceptance Receivables
Corp., as borrower, and Long Beach Acceptance Corp., as guarantor, as amended by
Amendment No. 1 thereto dated as of January 30, 1998, as further amended by the
Omnibus Amendment Agreement dated as of March 31, 1999, and as otherwise may be
amended, supplemented or otherwise modified from time to time pursuant to the
terms thereof.

Credit and Security Agreement dated as of August 29, 1997 by and among Greenwich
Capital Financial Products, Inc., as lender, Long Beach Acceptance Receivables
Corp., as borrower, and Long Beach Acceptance Corp., as guarantor, as amended by
Amendment No. 1 thereto dated as of January 30, 1998, as further amended by the
Omnibus Amendment Agreement dated as of March 31, 1999, and as otherwise may be
amended, supplemented or otherwise modified from time to time pursuant to the
terms thereof.

Credit and Security Agreement dated as of January 30, 1998 by and among
Greenwich Capital Financial Products, Inc., as lender, Long Beach Acceptance
Receivables Corp., as borrower, and Long Beach Acceptance Corp., as guarantor,
as amended by the Omnibus Amendment Agreement dated as of March 31, 1999, and as
otherwise may be amended, supplemented or otherwise modified from time to time
pursuant to the terms thereof.

Credit and Security Agreement dated as of November 25, 1998 by and among
Greenwich Capital Financial Products, Inc., as lender, Long Beach Acceptance
Receivables Corp., as borrower, and Long Beach Acceptance Corp., as guarantor,
as amended by the Omnibus Amendment Agreement dated as of March 31, 1999, and as
otherwise may be amended, supplemented or otherwise modified from time to time
pursuant to the terms thereof.

Warehouse Lending Agreement dated as of January 30, 1998 between Long Beach
Acceptance Corp., as Borrower, and Greenwich Capital Financial Products, Inc.,
as Lender, as renewed and amended by the Renewal and Amendment Agreement dated
as of January 29, 1999, and as otherwise may be amended, supplemented or
otherwise modified from time to time pursuant to the terms thereof.

Security Agreement dated as of January 30, 1998 made by Long Beach Acceptance
Corp., as Pledgor, in favor of Greenwich Capital Financial Products, Inc., as
Pledgee, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with the terms thereof.

                                      G-1<Page>

                                                                   Exhibit 10.15

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

                          SALE AND SERVICING AGREEMENT

                                      among

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 1999-2

                                     Issuer

                     LONG BEACH ACCEPTANCE RECEIVABLES CORP.

                                   Transferor

                           LONG BEACH ACCEPTANCE CORP.

                             Originator and Servicer

                                       and

                            THE CHASE MANHATTAN BANK

             Back-up Servicer, Custodian and Trust Collateral Agent

                          Dated as of December 1, 1999

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

<Page>

                                TABLE OF CONTENTS

<Table>

                                                                                                               Page
<S>                   <C>                                                                                      <C>
ARTICLE I DEFINITIONS.............................................................................................1

     SECTION 1.1.     Definitions.................................................................................1
     SECTION 1.2.     Other Definitional Provisions...............................................................1
     SECTION 1.3.     Calculations................................................................................2
     SECTION 1.4.     Action by or Consent of Noteholders.........................................................2
     SECTION 1.5.     Material Adverse Effect.....................................................................2

ARTICLE II CONVEYANCE OF RECEIVABLES..............................................................................3

     SECTION 2.1.     Conveyance of Initial Receivables...........................................................3
     SECTION 2.2.     Conveyance of Subsequent Receivables........................................................4
     SECTION 2.3.     Transfer Intended as Sale; Precautionary Security Interest..................................9
     SECTION 2.4.     Assignment by Transferor....................................................................9
     SECTION 2.5.     The Legal Files Are Not "Financial Assets".................................................10
     SECTION 2.6.     Further Encumbrance of Trust Assets........................................................10

ARTICLE III THE RECEIVABLES......................................................................................10

     SECTION 3.1.     Representations and Warranties of Transferor...............................................10
     SECTION 3.2.     Repurchase upon Breach of Representations and Warranties of the Transferor.................11
     SECTION 3.3.     Delivery of Legal Files and Receivable Files...............................................11
     SECTION 3.4.     Acceptance of Legal Files by Custodian.....................................................12
     SECTION 3.5.     Access to Receivable Files and Legal Files; Servicer's Duties with Respect to
                             Receivable Files; Custodian's Duties with Respect to Legal Files....................13
     SECTION 3.6.     Covenants of the Custodian.................................................................14
     SECTION 3.7.     Issuer's Certificate.......................................................................16

ARTICLE IV ADMINISTRATION AND SERVICING OF RECEIVABLES...........................................................17

     SECTION 4.1.     Duties of the Servicer.....................................................................17
     SECTION 4.2.     Collection and Allocation of Receivable Payments...........................................17
     SECTION 4.3.     Realization upon Receivables...............................................................18
     SECTION 4.4.     Physical Damage Insurance; Other Insurance.................................................19
     SECTION 4.5.     Maintenance of Security Interests in Financed Vehicles.....................................20
     SECTION 4.6.     Additional Covenants of Servicer...........................................................21
     SECTION 4.7.     Purchase of Receivables Upon Breach........................................................21
     SECTION 4.8.     Servicing Fee..............................................................................22
     SECTION 4.9.     Servicer's Certificate.....................................................................22
     SECTION 4.10.    Annual Statement as to Compliance; Notice of Default.......................................23
     SECTION 4.11.    Annual Independent Certified Public Accountant's Report....................................23
     SECTION 4.12.    Servicer Expenses..........................................................................24
     SECTION 4.13.    Retention and Termination of Servicer......................................................24

                                                          i
<Page>

     SECTION 4.14.    Access to Certain Documentation and Information Regarding Receivables......................24
     SECTION 4.15.    Verification of Servicer's Certificate.....................................................25
     SECTION 4.16.    Fidelity Bond..............................................................................26
     SECTION 4.17.    Delegation of Duties.......................................................................26
     SECTION 4.18.    Delivery of Back-up Tapes of Back-up Servicer..............................................27

ARTICLE V ACCOUNTS; PAYMENTS; STATEMENTS TO NOTEHOLDERS..........................................................28

     SECTION 5.1.     Accounts; Lock-Box Account.................................................................28
     SECTION 5.2.     Collections................................................................................30
     SECTION 5.3.     Application of Collections.................................................................30
     SECTION 5.4.     Intentionally Omitted......................................................................30
     SECTION 5.5.     Additional Deposits........................................................................30
     SECTION 5.6.     Payments; Policy Claims....................................................................31
     SECTION 5.7.     Statements to Noteholders; Tax Returns.....................................................35
     SECTION 5.8.     Reliance on Information from the Servicer..................................................38
     SECTION 5.9.     Optional Deposits by the Note Insurer......................................................38
     SECTION 5.10.    Spread Account.............................................................................38
     SECTION 5.11.    Withdrawals from Spread Account............................................................38
     SECTION 5.12.    Simple Interest............................................................................39
     SECTION 5.13.    Pre-Funding Account........................................................................39
     SECTION 5.14.    Capitalized Interest Account...............................................................40
     SECTION 5.15.    Class B Reserve Account....................................................................40
     SECTION 5.16.    Securities Accounts........................................................................41

ARTICLE VI THE NOTE POLICY.......................................................................................41

     SECTION 6.1.     Note Policy................................................................................41
     SECTION 6.2.     Claims Under Note Policy...................................................................41
     SECTION 6.3.     Preference Claims; Direction of Proceedings................................................43
     SECTION 6.4.     Surrender of Note Policy...................................................................43

ARTICLE VII THE TRANSFEROR.......................................................................................44

     SECTION 7.1.     Representations of the Transferor..........................................................44
     SECTION 7.2.     Liability of the Transferor................................................................46
     SECTION 7.3.     Merger or Consolidation of, or Assumption of the Obligations of, the Transferor............46
     SECTION 7.4.     Limitation on Liability of the Transferor and Others.......................................46
     SECTION 7.5.     Transferor May Own Notes...................................................................47

ARTICLE VIII THE SERVICER........................................................................................47

     SECTION 8.1.     Representations of Servicer................................................................47
     SECTION 8.2.     Indemnities of Servicer....................................................................49
     SECTION 8.3.     Merger or Consolidation of, or Assumption of the Obligations of, Servicer or
                             Back-up Servicer....................................................................51
     SECTION 8.4.     Limitation on Liability of Servicer and Others.............................................52

                                                          ii
<Page>

     SECTION 8.5.     Servicer and Back-up Servicer Not to Resign................................................52

ARTICLE IX SERVICER TERMINATION EVENTS...........................................................................53

     SECTION 9.1.     Servicer Termination Events................................................................53
     SECTION 9.2.     Appointment of Successor...................................................................56
     SECTION 9.3.     Notification to Noteholders................................................................57
     SECTION 9.4.     Action Upon Certain Failures of the Servicer...............................................57

ARTICLE X THE TRUST COLLATERAL AGENT AND THE CUSTODIAN...........................................................58

     SECTION 10.1.    Duties of the Trust Collateral Agent and the Custodian.....................................58
     SECTION 10.2.    Trust Collateral Agent to Act for the Noteholders and Note Insurer.........................61
     SECTION 10.3.    Certain Matters Affecting the Trust Collateral Agent and the Custodian.....................61
     SECTION 10.4.    Trust Collateral Agent, Back-up Servicer and Custodian Not Liable for Notes or
                        Receivables..............................................................................63
     SECTION 10.5.    Trust Collateral Agent, Back-up Servicer and Custodian May Own Notes.......................64
     SECTION 10.6.    Indemnity of Trust Collateral Agent, Back-up Servicer and Custodian........................64
     SECTION 10.7.    Eligibility Requirements for Trust Collateral Agent and the Custodian......................64
     SECTION 10.8.    Resignation or Removal of Trust Collateral Agent or Custodian..............................64
     SECTION 10.9.    Successor Trust Collateral Agent or Custodian..............................................66
     SECTION 10.10.   Merger or Consolidation of Trust Collateral Agent or Custodian.............................67
     SECTION 10.11.   Co-Trustee; Separate Trustee...............................................................67
     SECTION 10.12.   Representations and Warranties of Trust Collateral Agent and the Custodian.................68
     SECTION 10.13.   Rights of Note Insurer to Direct Trust Collateral Agent....................................69

ARTICLE XI TERMINATION...........................................................................................69

     SECTION 11.1.    Termination................................................................................69

ARTICLE XII ADMINISTRATIVE DUTIES OF THE SERVICER................................................................70

     SECTION 12.1.    Administrative Duties......................................................................70
     SECTION 12.2.    Records....................................................................................71
     SECTION 12.3.    Additional Information to be Furnished to the Issuer.......................................71
     SECTION 12.4.    No Additional Compensation.................................................................71

ARTICLE XIII MISCELLANEOUS PROVISIONS............................................................................72

     SECTION 13.1.    Amendment..................................................................................72
     SECTION 13.2.    Protection of Title to Issuer..............................................................73
     SECTION 13.3.    Limitation on Rights of Noteholders........................................................75
     SECTION 13.4.    Governing Law..............................................................................76
     SECTION 13.5.    Notices....................................................................................76
     SECTION 13.6.    Severability of Provisions.................................................................77

                                                          iii
<Page>

     SECTION 13.7.    Assignment to Indenture Trustee............................................................77
     SECTION 13.8.    Limitation of Liability of Owner Trustee, Custodian and Trust Collateral Agent.............77
     SECTION 13.9.    Independence of the Servicer...............................................................78
     SECTION 13.10.   No Joint Venture...........................................................................78
     SECTION 13.11.   Nonpetition Covenant.......................................................................78
     SECTION 13.12.   Third Party Beneficiaries..................................................................78
     SECTION 13.13.   Consent to Jurisdiction....................................................................78
     SECTION 13.14.   Headings...................................................................................79
     SECTION 13.15.   Trial by Jury Waived.......................................................................79
     SECTION 13.16.   Entire Agreement...........................................................................80
     SECTION 13.17.   Effect of Policy Expiration Date...........................................................80

                                     ANNEXES

Annex         A       Defined Terms

                                    EXHIBITS

Exhibit       A-1     Form of Issuer's Certificate
Exhibit       A-2     Form of Issuer's Certificate
Exhibit       B-1     Form of Servicer's Certificate
Exhibit       B-2     Form of Loan Master File Layout
Exhibit       C       Intentionally Omitted
Exhibit       D       Payment Deferment and Due Date Change Policies
Exhibit       E       Documentation Checklist
Exhibit       F       Form of Request for Transfer of Possession
Exhibit       G       Form of Custodial Letter
Exhibit       H       Form of Transfer Agreement

                                    SCHEDULES

Schedule      A       Schedule of Receivables
Schedule      B       Location of Receivable Files; Location of Legal Files
Schedule      C       Delivery Requirements
</Table>

                                        iv

<Page>

                  SALE AND SERVICING AGREEMENT ("Agreement"), dated as of
December 1, 1999, among LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 1999-2, a
Delaware business trust, as issuer (the "Issuer"), LONG BEACH ACCEPTANCE
RECEIVABLES CORP., a Delaware corporation, as transferor (the "Transferor"),
LONG BEACH ACCEPTANCE CORP., a Delaware corporation, as originator of the
receivables ("LBAC") and as servicer (in such capacity, the "Servicer") and THE
CHASE MANHATTAN BANK, a New York banking corporation, as back-up servicer,
custodian and trust collateral agent, ("Back-up Servicer", "Custodian" and
"Trust Collateral Agent", respectively).

                  WHEREAS the Issuer desires to acquire a portfolio of
receivables arising in connection with motor vehicle retail installment sale
contracts acquired by LBAC through motor vehicle dealers;

                  WHEREAS the Transferor has purchased such receivables from
LBAC and is willing to convey such receivables to the Issuer;

                  WHEREAS the Issuer desires to acquire, from time to time,
additional receivables arising in connection with motor vehicle retail
installment sale contracts to be acquired by LBAC through motor vehicle dealers;

                  WHEREAS the Transferor has agreed to purchase, from time to
time, such additional receivables from LBAC and is willing to convey such
receivables to the Issuer; and

                  WHEREAS the Servicer is willing to service all such
receivables.

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

                                   ARTICLE I
                                   DEFINITIONS

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

                  SECTION 1.2. OTHER DEFINITIONAL PROVISIONS.

         (a) All terms defined in this Agreement (including Annex A hereto)
shall have the defined meanings when used in any instrument governed hereby and
in any certificate or other document made or delivered pursuant hereto unless
otherwise defined therein.

         (b) As used in this Agreement, in any instrument governed hereby and in
any certificate or other document made or delivered pursuant hereto or thereto,
accounting terms not defined in this Agreement (including Annex A hereto) or in
any such instrument, certificate or other document, and accounting terms partly
defined in this Agreement (including Annex A hereto) or in any such instrument,
certificate or other document to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting principles
as in

<Page>

effect on the date of this Agreement or any such instrument, certificate or
other document, as applicable. To the extent that the definitions of accounting
terms in this Agreement (including Annex A hereto) or in any such instrument,
certificate or other document are inconsistent with the meanings of such terms
under generally accepted accounting principles, the definitions contained in
this Agreement (including Annex A hereto) or in any such instrument, certificate
or other document shall control.

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

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

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

                  SECTION 1.3. CALCULATIONS. All calculations of the amount of
the Servicing Fee, the Back-up Servicer Fee, Custodian Fee and the Indenture
Trustee Fee shall be made on the basis of a 360-day year consisting of twelve
30-day months. All references to the Principal Balance of a Receivable as of the
last day of a Collection Period shall refer to the close of business on such
day.

                  SECTION 1.4. ACTION BY OR CONSENT OF NOTEHOLDERS. Whenever any
provision of this Agreement refers to action to be taken, or consented to, by
Noteholders, such provision shall be deemed to refer to Noteholders of record as
of the Record Date immediately preceding the date on which such action is to be
taken, or consent given, by Noteholders. Solely for the purposes of any action
to be taken or consented to by Noteholders, any Note registered in the name of
the Transferor, LBAC, the Servicer or any Affiliate thereof shall be deemed not
to be outstanding and shall not be taken into account in determining whether the
requisite interest necessary to effect any such action or consent has been
obtained; PROVIDED, HOWEVER, that, solely for the purpose of determining whether
the Indenture Trustee or the Trust Collateral Agent is entitled to rely upon any
such action or consent, only Notes which the Indenture Trustee or the Trust
Collateral Agent actually knows to be so owned shall be so disregarded.

                  SECTION 1.5. MATERIAL ADVERSE EFFECT. Whenever a determination
is to be made under this Agreement as to whether a given event, action, course
of conduct or set of facts

                                       2
<Page>

or circumstances could or would have a material adverse effect on the Issuer or
Noteholders (or any similar or analogous determination), such determination
shall be made without taking into account the insurance provided by the Note
Policy. Whenever a determination is to be made under this Agreement whether a
breach of a representation, warranty or covenant has or could have a material
adverse effect on a Receivable or the interest therein of the Issuer, the
Noteholders or the Note Insurer (or any similar or analogous determination),
such determination shall be made by the Note Insurer in its sole discretion, so
long as no Note Insurer Default shall have occurred and be continuing.

                                   ARTICLE II
                            CONVEYANCE OF RECEIVABLES

                  SECTION 2.1. CONVEYANCE OF INITIAL RECEIVABLES.

                  In consideration of the Issuer's delivery of the Certificate
to or upon the order of the Transferor on the Closing Date and the net proceeds
from the sale of the Notes and the other amounts to be distributed from time to
time to, or upon the order of, the Transferor in accordance with the terms of
this Agreement, the Transferor does hereby transfer, assign, set over and
otherwise convey to the Issuer, without recourse, all right, title and interest
of the Transferor in and to:

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

                  (ii) the security interests in the related Financed Vehicles
         granted by the related Obligors pursuant to the Initial 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 an Initial Receivable and that has
         been acquired by or on behalf of the Issuer pursuant to the liquidation
         of such Initial Receivable;

                  (v) the Purchase Agreement and the Guarantee including,
         without limitation, a direct right to cause LBAC to purchase Initial
         Receivables from the Issuer 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;

                                       3
<Page>

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

                  (viii) 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 Initial Receivables;

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

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

                  SECTION 2.2. CONVEYANCE OF SUBSEQUENT RECEIVABLES.

         (a) Subject to the conditions set forth in Section 2.2(b) and in the
related Transfer Agreement, in consideration of the Issuer's delivery to or upon
the order of the Transferor of the purchase price for the Subsequent
Receivables, in each case as described below and set forth in the related
Transfer Agreement, the Transferor shall on each Subsequent Transfer Date sell,
transfer, assign, set over and otherwise convey to the Issuer, without recourse,
all right, title and interest of the Transferor in and to:

                  (i) the Subsequent Receivables listed in Schedule A to the
         related Transfer Agreement, all monies received on such Subsequent
         Receivables after the applicable Subsequent Cut-off Date and, with
         respect to any such Subsequent Receivables which are Precomputed
         Receivables, the related Payahead Amount and all Liquidation Proceeds
         and Recoveries received with respect to such Subsequent Receivables;

                  (ii) the security interests in the related Financed Vehicles
         granted by the related Obligors pursuant to such Subsequent 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 Subsequent Receivable and that has
         been acquired by or on behalf of the Issuer pursuant to the liquidation
         of such Subsequent Receivable;

                                       4
<Page>

                  (v) each Transfer Agreement, the Purchase Agreement and the
         Guarantee, including, without limitation, a direct right to cause LBAC
         to purchase Subsequent Receivables from the Issuer upon the occurrence
         of a breach of any of the representations and warranties contained in
         Section 4 of the related Transfer 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 the related
         Financed Vehicle or his or her obligations with respect to a related
         Financed Vehicle and any recourse to Dealers for any of the foregoing;

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

                  (viii) 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 such Subsequent Receivables;

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

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

                  The purchase price to be paid by the Issuer on each Subsequent
Transfer Date for the Subsequent Receivables so sold shall be set forth in the
related Transfer Agreement and shall be paid from monies released from the
Pre-Funding Account pursuant to Section 5.13(b). Such purchase price shall equal
the aggregate Principal Balance of such Subsequent Receivables as of the related
Subsequent Cutoff Date.

         (b) The Transferor shall transfer to the Issuer the Subsequent
Receivables and the other property and rights related thereto described in
Section 2.2(a) only upon the prior written consent of the Note Insurer acting in
its sole and absolute discretion and the satisfaction of each of the following
conditions on or prior to the related Subsequent Transfer Date:

                  (i) the Transferor shall have provided the Indenture Trustee,
         the Trust Collateral Agent, the Note Insurer and each Rating Agency
         with an Addition Notice not later than five Business Days prior to the
         related Subsequent Transfer Date and shall also have provided the
         Indenture Trustee, the Trust Collateral Agent and the Note Insurer with
         an electronic transmission of the information on the related Subsequent
         Receivables set forth in such Addition Notice in a format acceptable to
         each of the Indenture Trustee, the Trust Collateral Agent and the Note
         Insurer no later than such fifth Business Day prior to the related
         Subsequent Transfer Date;

                                       5
<Page>

                  (ii) the Originator shall have delivered to the Transferor, a
         written Subsequent Assignment, which shall include a list of the
         Subsequent Receivables so transferred attached thereto as Schedule A,
         and a copy thereof to the Note Insurer;

                  (iii) the Transferor, the Originator, the Trust and the Trust
         Collateral Agent shall have executed a written Transfer Agreement,
         which shall include a list of the Subsequent Receivables so transferred
         attached thereto as Schedule A, and a copy thereof shall have been
         delivered to the Note Insurer;

                  (iv) the Transferor shall have caused the Servicer to deposit
         in the Collection Account all collections on or in respect of the
         Subsequent Receivables (to the extent conveyed to the Trust as
         specified in Section 2.2(b)) received prior to the related Subsequent
         Transfer Date;

                  (v) the Transferor shall have deposited or caused to be
         deposited the related Subsequent Spread Account Deposit into the Spread
         Account pursuant to Section 5.10 and the related Class B Reserve
         Account Subsequent Deposit into the Class B Reserve Account pursuant to
         Section 5.15(a);

                  (vi) as of each Subsequent Transfer Date, neither the Servicer
         nor the Transferor will be insolvent nor will either of them be made
         insolvent by the related transfer nor is any of them aware of any
         pending insolvency;

                  (vii) the Funding Period shall not have terminated;

                  (viii) the Transferor shall have delivered to the Indenture
         Trustee, the Trust Collateral Agent, the Note Insurer and each Rating
         Agency an Officer's Certificate confirming the satisfaction of each
         condition precedent specified in this Section 2.2(b) and in Section 5
         of the related Transfer Agreement and certifying that:

                           (A) such conveyance of Subsequent Receivables by the
                  Transferor to the Trust on the related Subsequent Transfer
                  Date was made in good faith for legitimate business purposes
                  and was not made with intent to hinder, delay or defraud any
                  Person to which the Transferor has been, is or will become, on
                  or after the related Subsequent Transfer Date, indebted;

                           (B) the Transferor did not receive less than a
                  reasonably equivalent value in exchange for the conveyance of
                  the Subsequent Receivables by the Transferor to the Issuer on
                  the related Subsequent Transfer Date pursuant to the related
                  Transfer Agreement;

                           (C) the Transferor is not insolvent on the related
                  Subsequent Transfer Date and will not become insolvent as a
                  result of the conveyance of the Subsequent Receivables by the
                  Transferor to the Issuer on the related Subsequent Transfer
                  Date pursuant to the related Transfer Agreement;

                           (D) the Transferor is not engaged in a business or
                  transaction, and is not about to engage in a business or
                  transaction, for which any property remaining

                                       6
<Page>

                  with the Transferor after such business or transaction would
                  be an unreasonably small amount of capital; and

                           (E) the Transferor has not incurred, and does not
                  believe that it will incur, debts that would be beyond the
                  Transferor's ability to pay as such debts mature;

                  (ix) the Originator shall have delivered to the Indenture
         Trustee, the Trust Collateral Agent, the Note Insurer and each Rating
         Agency an Officer's Certificate confirming the satisfaction of each
         condition precedent specified in this Section 2.2(b) and in Section 5
         of the related Transfer Agreement and certifying that:

                           (A) that such sale of Subsequent Receivables by the
                  Originator to the Transferor on the related Subsequent
                  Transfer Date was made in good faith for legitimate business
                  purposes and was not made with intent to hinder, delay or
                  defraud any Person to which the Originator has been, is or
                  will become, on or after the related Subsequent Transfer Date,
                  indebted;

                           (B) the Originator did not receive less than a
                  reasonably equivalent value in exchange for the sale of the
                  Subsequent Receivables by the Originator to the Transferor on
                  the related Subsequent Transfer Date pursuant to the Purchase
                  Agreement and the related Subsequent Assignment;

                           (C) the Originator is not insolvent on the related
                  Subsequent Transfer Date and will not become insolvent as a
                  result of the sale of the Subsequent Receivables by the
                  Originator to the Transferor on the related Subsequent
                  Transfer Date pursuant to the Purchase Agreement and the
                  related Subsequent Assignment;

                           (D) the Originator is not engaged in a business or
                  transaction, and is not about to engage in a business or
                  transaction, for which any property remaining with the
                  Originator after such business or transaction would be an
                  unreasonably small amount of capital; and

                           (E) the Originator has not incurred, and does not
                  believe that it will incur, debts that would be beyond the
                  Originator's ability to pay as such debts mature;

                  (x) the Transferor shall have delivered to each Rating Agency,
         the Note Insurer, the Indenture Trustee and the Trust Collateral Agent
         Opinions of Counsel with respect to the transfer of the Subsequent
         Receivables substantially in the form of the Opinions of Counsel
         delivered to each Rating Agency, the Note Insurer, the Indenture
         Trustee and the Trust Collateral Agent on the Closing Date regarding
         true sale, non-consolidation, perfection, and other such matters
         satisfactory in form and substance to each of the Note Insurer, the
         Indenture Trustee and the Trust Collateral Agent in its sole
         discretion;

                                      7
<Page>

                  (xi) the Transferor shall have taken all action required to
         maintain the first priority perfected security interest (as defined in
         the UCC) of the Issuer in the Trust Assets;

                  (xii) no selection procedures believed by the Transferor or
         the Originator to be adverse to the interests of the Noteholders or the
         Note Insurer shall have been utilized in selecting the Subsequent
         Receivables;

                  (xiii) the conveyance of the Subsequent Receivables shall not
         result in a qualification, modification or withdrawal of the
         then-current ratings of the Notes; provided that written confirmation
         of such ratings shall not be required from the Rating Agencies;

                  (xiv) the Transferor shall have provided the Indenture Trustee
         and the Trust Collateral Agent with a supplement to the Schedule of
         Receivables setting forth the Subsequent Receivables to be transferred
         on such Subsequent Transfer Date;

                  (xv) the Transferor shall have caused a firm of independent
         accountants to deliver to the Indenture Trustee, the Trust Collateral
         Agent and the Note Insurer written confirmation that the Receivables,
         including the related Subsequent Receivables, meet the following
         criteria:

                           (1) the weighted average remaining term of the
                  Receivables will be no more than 61 months and the weighted
                  average original term for the Receivables will be no more than
                  63 months;

                           (2) each Receivable will have a minimum APR of 7.50%;

                           (3) each Receivable will have an original term of no
                  more than 72 months;

                           (4) no more than 60% of the Receivables will be
                  originated in California;

                           (5) the weighted average APR for the Receivables will
                  be greater than or equal to 17.25%;

                           (6) not less than 6.3% of the aggregate Principal
                  Balance of the Receivables will be Class I Receivables, not
                  less than 27% of the aggregate Principal Balance of the
                  Receivables will be Class IIA Receivables, not less than 41%
                  of the aggregate Principal Balance of the Receivables will be
                  Class IIB Receivables, no more than 21% of the aggregate
                  Principal Balance of the Receivables will be Class III
                  Receivables and not more than 1% of the aggregate Principal
                  Balance of the Receivables will be Class IV Receivables; and

                           (7) not more than 82% of the aggregate Principal
                  Balance of the Receivables will represent loans to finance the
                  purchase of used Financed Vehicles;

                                       8
<Page>

                  (xvi) the Transferor shall satisfy the document delivery
         requirements for such Subsequent Receivables as specified in Section
         3.3;

                  (xvii) the representations and warranties made by the
         Transferor and the Servicer in Sections 7.1 and 8.1, respectively,
         shall be true and correct on and as of such Subsequent Transfer Date
         and the representations and warranties made by the Originator with
         respect to each such Subsequent Receivable being transferred to the
         Trust on such Subsequent Transfer Date in Section 4 of the related
         Transfer Agreement and Section 3.2(b) of the Purchase Agreement shall
         be true and correct as of such Subsequent Transfer Date;

                  (xviii) on or before such Subsequent Transfer Date, the
         Transferor shall have provided any information reasonably requested by
         the Rating Agencies, the Note Insurer, the Indenture Trustee or the
         Trust Collateral Agent with respect to any Subsequent Receivables;

                  (xix) the Custodian shall acknowledge receipt of files which
         the Transferor shall represent are the Legal Files relating to the
         Subsequent Receivables and the Custodian shall have reviewed the Legal
         Files relating to the Subsequent Receivables and shall have determined
         that it has received a Legal File for each Receivable identified in the
         supplement to the Schedule of Receivables attached as Schedule A to the
         related Transfer Agreement; and

                  (xx) the Servicer shall deliver the loan master file and
         history information and the information required to be set forth in the
         form attached hereto as Exhibit B-2 as specified in Section 4.18.

                  SECTION 2.3. TRANSFER INTENDED AS SALE; PRECAUTIONARY SECURITY
INTEREST. Each conveyance to the Issuer of the property set forth in Section 2.1
and Section 2.2 above is intended as a sale (for certain non-tax purposes) free
and clear of all Liens, and it is intended that the property of the Issuer shall
not be part of the Transferor's estate in the event of the filing of a
bankruptcy petition by or against the Transferor under any bankruptcy law. In
the event, however, that notwithstanding the intent of LBAC, the Transferor and
the Issuer, any transfer under this Agreement is held not to be a sale, this
Agreement shall constitute a security agreement under the UCC (as defined in the
UCC as in effect in the State of New York) and applicable law, and the
Transferor hereby grants a security interest to the Issuer in, to and under the
property described in Section 2.1 and Section 2.2 above and all proceeds
thereof, for the benefit of the Noteholders and the Note Insurer as their
interests may appear herein, for the purpose of securing the payment and
performance of the Notes and the repayment of amounts owed to the Issuer from
the Transferor.

                  SECTION 2.4. ASSIGNMENT BY TRANSFEROR. The Transferor does
hereby transfer, assign and otherwise convey unto the Issuer, for the benefit of
the Noteholders and the Note Insurer, its right to any recourse to LBAC
resulting from the occurrence of a breach of any of their respective
representations and warranties contained in Section 3.2 of the Purchase
Agreement and Section 4 of each Transfer Agreement or from the failure of LBAC
to comply with its obligations pursuant to Section 5.5 of the Purchase
Agreement. The provisions of this

                                       9
<Page>

Section 2.4 are intended to grant the Issuer a direct right against LBAC to
demand performance under the terms of the Purchase Agreement.

                  SECTION 2.5. THE LEGAL FILES ARE NOT "FINANCIAL ASSETS". The
parties (for themselves, their successors, trustees, receivers and assigns)
acknowledge and agree that the Legal Files held pursuant to this Agreement are
not "financial assets" within the meaning of ss. 8.102(a)(9) of the Texas
Business & Commerce Code (the "Texas UCC").

                  SECTION 2.6. FURTHER ENCUMBRANCE OF TRUST ASSETS.

         (a) Immediately upon the conveyance to the Issuer by the Transferor of
any item of the Trust Assets pursuant to Section 2.1 and Section 2.2, all right,
title and interest of the Transferor in and to such item of Trust Assets shall
terminate, and all such right, title and interest shall vest in the Issuer, in
accordance with the Trust Agreement and Sections 3802 and 3805 of the Business
Trust Statute (as defined in the Trust Agreement).

         (b) Immediately upon the vesting of the Trust Assets in the Issuer, the
Issuer shall have the sole right to pledge or otherwise encumber, such Trust
Assets. Pursuant to the Indenture, the Issuer shall grant a security interest in
the Trust Assets to the Indenture Trustee to secure the repayment of the Notes.
The Certificate shall represent the beneficial ownership interest in the Trust
Assets, and the Noteholders shall be entitled to receive payments with respect
thereto as set forth herein and pursuant to the Indenture.

         (c) Following the payment in full of the Notes and the release and
discharge of the Indenture, all covenants of the Issuer under Article III of the
Indenture shall, until payment in full of the Certificate, remain as covenants
of the Issuer for the benefit of the Certificateholder, enforceable by the
Certificateholder to the same extent as such covenants were enforceable by the
Noteholders prior to the discharge of the Indenture. Any rights of the Indenture
Trustee under Article III of the Indenture, following the discharge of the
Indenture, shall vest in the Certificateholder.

         (d) The Trust Collateral Agent shall, at such time as there are no
Notes or Certificates outstanding, the Note Policy has expired in accordance
with its terms and all sums due to (i) the Note Insurer hereunder or pursuant to
the Insurance Agreement, (ii) the Indenture Trustee pursuant to the Indenture
and (iii) the Trust Collateral Agent pursuant to this Agreement, have been paid,
release any remaining portion of the Trust Assets to the Transferor.

                                  ARTICLE III
                                THE RECEIVABLES

                  SECTION 3.1. REPRESENTATIONS AND WARRANTIES OF TRANSFEROR. The
Transferor hereby makes each of the representations and warranties made by LBAC
in Section 3.2(b) of the Purchase Agreement and Section 4 of each Transfer
Agreement with respect to the Receivables to the same extent as if such
representations and warranties were fully set forth herein. With respect to such
representations and warranties, the Issuer is deemed to have relied on such
representations and warranties in acquiring the Receivables, the Note Insurer
shall be deemed to have relied on such representations and warranties in issuing
the Note Policy, the Indenture

                                       10
<Page>

Trustee is deemed to have relied on such representations and warranties in
issuing the Notes and the Noteholders are deemed to have relied on such
representations and warranties in purchasing the Notes. Such representations and
warranties speak as of the execution and delivery of this Agreement and as of
the Closing Date in the case of the Initial Receivables, and as of the related
Subsequent Transfer Date in the case of the Subsequent Receivables, but shall
survive the transfer and assignment of the Receivables to the Issuer and the
subsequent pledge thereof to the Indenture Trustee pursuant to the Indenture.

                  SECTION 3.2. REPURCHASE UPON BREACH OF REPRESENTATIONS AND
WARRANTIES OF THE TRANSFEROR.

         (a) The Transferor, the Servicer, the Note Insurer, the Custodian, the
Trust Collateral Agent or the Issuer, as the case may be, shall inform the other
parties to this Agreement promptly, by notice in writing, upon the discovery of
any breach of the Transferor's representations and warranties made pursuant to
Section 3.1. As of the last day of the second Collection Period following the
discovery by the Transferor or receipt by the Transferor of notice of such
breach, unless such breach is cured by such date, the Transferor shall have an
obligation to repurchase any Receivable in which the interests of the
Noteholders or the Note Insurer are materially and adversely affected by any
such breach as of such date. In consideration of and simultaneously with the
repurchase of the Receivable, the Transferor shall remit, or cause LBAC to
remit, to the Collection Account the Purchase Amount in the manner specified in
Section 5.5 and the Issuer shall execute such assignments and other documents
reasonably requested by such person in order to effect such repurchase. The sole
remedies of the Issuer, the Trust Collateral Agent, the Indenture Trustee or the
Noteholders with respect to a breach of representations and warranties pursuant
to Section 3.1 shall be (i) the repurchase of Receivables pursuant to this
Section, subject to the conditions contained herein, or (ii) to enforce the
obligation of LBAC to the Transferor to repurchase such Receivables pursuant to
the Purchase Agreement. Neither the Owner Trustee, the Custodian, the Trust
Collateral Agent nor the Indenture Trustee shall have a duty to conduct any
affirmative investigation as to the occurrence of any conditions requiring the
repurchase of any Receivable pursuant to this Section.

         (b) Pursuant to Section 2.1 and Section 2.2, the Transferor conveys to
the Issuer all of the Transferor's right, title and interest in its rights and
benefits, but none of its obligations or burdens, under the Purchase Agreement
including the Transferor's rights under the Purchase Agreement and the delivery
requirements, representations and warranties and the cure or repurchase
obligations of LBAC thereunder. The Transferor hereby represents and warrants to
the Issuer that such assignment is valid, enforceable and effective to permit
the Issuer to enforce such obligations of LBAC and the Transferor under the
Purchase Agreement.

                  SECTION 3.3. DELIVERY OF LEGAL FILES AND RECEIVABLE FILES.

         (a) On or prior to the Closing Date in the case of the Initial
Receivables, and on or prior to the third Business Day immediately preceding the
related Subsequent Transfer Date in the case of the Subsequent Receivables, the
Transferor shall transfer and deliver to the Custodian at the offices specified
in Schedule B to this Agreement the Legal Files with respect to each applicable
Receivable.

                                       11
<Page>

         (b) On or prior to the Closing Date in the case of the Initial
Receivables, and on or prior to the third Business Day immediately preceding the
related Subsequent Transfer Date in the case of the Subsequent Receivables, the
Transferor shall transfer and deliver to the Servicer with respect to each
applicable Receivable the following, either in hard copy or in an electronic
format:

                  (i) a copy of the fully executed original of the Receivable
         with a copy of the fully executed assignment from the related Dealer to
         the Originator (together with copies of any agreements modifying the
         Receivable, including, without limitation, any extension agreements);

                  (ii) a copy of the original credit application fully executed
         by the Obligor;

                  (iii) a copy of the Lien Certificate or Title Package, as
         applicable;

                  (iv) all other documents listed on the Documentation Checklist
         in effect on the Initial Cutoff Date or the related Subsequent Cutoff
         Date, as applicable, relating to such Receivable, except that the
         Receivable Files shall contain a copy of those documents the original
         of which constitutes a part of the Legal File; and

                  (v) any and all other documents that the Servicer or the
         Originator shall keep on file, in accordance with its customary
         procedures, relating to a Receivable, an Obligor or a Financed Vehicle.

                  SECTION 3.4. ACCEPTANCE OF LEGAL FILES BY CUSTODIAN. The
Custodian acknowledges receipt of files which the Transferor has represented are
the Legal Files relating to the Initial Receivables. The Custodian shall hold
the Legal Files subject to the terms and conditions of this Agreement. The
Custodian may perform its duties in respect of custody of the Legal Files by or
through its agents or employees. The Custodian has reviewed the Legal Files
relating to the Initial Receivables and has determined that it has received a
file for each Initial Receivable identified in Schedule A to this Agreement. The
Custodian declares that it holds and will continue to hold such files, any
Receivable Files relating to Subsequent Receivables and, in each case, any
amendments, replacements or supplements thereto and all other Trust Assets as
custodian, agent and bailee for the Trust Collateral Agent in trust for the use
and benefit of all present and future Noteholders. The Custodian shall review
each Legal File delivered to it no later than the Closing Date or the related
Subsequent Transfer Date, as applicable to determine whether such Legal Files
contain the documents referred to in the definition of the term "Legal File" and
shall certify on the Closing Date or the related Subsequent Transfer Date, as
applicable to such effect. In addition, in the case of any Legal File which does
not contain either an original Lien Certificate or a Dealer Title Guaranty for
the related Financed Vehicle, the Custodian shall certify that the related
Dealer is listed on the Dealer Title Addendum. If the Custodian finds during its
review of the Legal Files or at any time thereafter that a Legal File for a
Receivable has not been received or that any of the documents referred to in the
definition of the term "Legal File" are not contained in a Legal File or, if
applicable, the related Dealer is not listed on the Dealer Title Addendum, the
Custodian shall promptly inform the Trust Collateral Agent (if at such time the
Trust Collateral Agent is not also the Custodian hereunder), LBAC, the
Transferor, the Back-up Servicer and the Note Insurer promptly, in writing, of
the failure to receive a Legal

                                       12
<Page>

File with respect to such Receivable (or of the failure of any of the
aforementioned documents to be included in the Legal File or the failure of the
related Dealer to be so listed) (it being understood that the Custodian's
obligation to review the contents of any Legal File and the Dealer Title
Addendum shall be limited as set forth in the preceding sentence). Unless any
such defect with respect to such Receivable shall have been cured by the last
day of the second Collection Period following discovery thereof by the
Custodian, LBAC shall repurchase any such Receivable as of such last day. In
consideration of the purchase of the Receivable, LBAC shall remit the Purchase
Amount, in the manner specified in Section 5.5. The sole remedy of the Indenture
Trustee, the Trust Collateral Agent, the Issuer or the Noteholders with respect
to a breach pursuant to this Section 3.4 shall be to require LBAC to purchase
the Receivables pursuant to this Section 3.4. Upon receipt of the Purchase
Amount and written instructions from the Servicer, the Trust Collateral Agent
shall cause the Custodian to release to LBAC or its designee the related Legal
File and shall execute and deliver all reasonable instruments of transfer or
assignment, without recourse, as are prepared by LBAC and delivered to the Trust
Collateral Agent and are necessary to vest in LBAC or such designee the Issuer's
right, title and interest in the Receivable. The Custodian shall make a list of
Receivables for which an application for a certificate of title or a Dealer
Title Guaranty but not a Lien Certificate is included in the Legal File as of
the date of its review of the Legal Files and deliver a copy of such list to the
Servicer, the Trust Collateral Agent and the Note Insurer. On the date which is
90 days following the Closing Date, or the related Subsequent Transfer Date, as
the case may be, or, if such date is not a Business Day, on the next succeeding
Business Day, the Custodian shall inform LBAC and the other parties to this
Agreement and the Note Insurer of any Receivable for which the related Legal
File on such date does not include a Lien Certificate, and LBAC shall repurchase
any such Receivable as of the last day of the Collection Period in which the
date, which is 150 days following the Closing Date in the case of the Initial
Receivables, or the related Subsequent Transfer Date, in the case of the
Subsequent Receivables occurs, if the related Legal File does not include a Lien
Certificate as of the close of business on such 150th day. In consideration of
the purchase of such Receivable, LBAC shall remit the Purchase Amount in the
manner specified in Section 5.5. The Transferor shall have no obligation to
repurchase any Receivable upon a breach pursuant to this Section 3.4. The
Transferor shall have no liability for any action taken or omitted to be taken
by LBAC pursuant to this Section 3.4.

                  SECTION 3.5. ACCESS TO RECEIVABLE FILES AND LEGAL FILES;
SERVICER'S DUTIES WITH RESPECT TO RECEIVABLE FILES; CUSTODIAN'S DUTIES WITH
RESPECT TO LEGAL FILES.

         (a) The Servicer and the Custodian shall, upon reasonable notice,
permit the Originator, the Trust Collateral Agent, the Transferor, the Issuer
and the Note Insurer access to the Receivable Files and the Legal Files,
respectively, at all reasonable times, upon reasonable notice and during the
Servicer's or the Custodian's normal business hours, as the case may be. In
addition, the Servicer and the Custodian shall provide such access to any
Noteholder upon reasonable notice at all reasonable times during the Servicer's
or the Custodian's normal business hours, as the case may be, in cases where the
Noteholders shall be required by applicable statutes or regulations to review
such documentation; PROVIDED, HOWEVER, that the Servicer or the Custodian shall
be entitled to rely upon an Opinion of Counsel as to such fact. In each case,
such access shall be afforded without charge but only upon reasonable request.
Each Noteholder shall be deemed to have agreed by its acceptance of a Note to
use its best efforts to hold in confidence all Confidential Information in
accordance with its then customary procedures; PROVIDED that

                                       13
<Page>

nothing herein shall prevent any Noteholder from delivering copies of any
financial statements and other documents 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, (ii) any other institutional investor that holds
Notes, (iii) any prospective institutional investor transferee in connection
with the contemplated transfer of a Note or any part thereof or participation
therein who is subject to confidentiality arrangements at least substantially
similar hereto, (iv) any governmental authority, (v) the National Association of
Insurance Commissioners or any similar organization, (vi) any nationally
recognized rating agency in connection with the rating of the Notes by such
agency or (vii) 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 such Noteholder is a party or (d) in
order to protect or enforce such Person's investment in any Note.

         (b) Upon instruction from the Trust Collateral Agent, the Servicer
shall release any Receivable Files to the Trust Collateral Agent, the Trust
Collateral Agent's agent or the Trust Collateral Agent's designee, as the case
may be, at such place or places as the Trust Collateral Agent may designate, as
soon as practicable. The Servicer shall not be responsible for the safekeeping
of such Receivable Files following such release to the Trust Collateral Agent
unless and until such Receivable Files are returned to the Servicer.

         (c) The Custodian shall, within two Business Days of the request of the
Servicer, the Trust Collateral Agent or the Note Insurer, execute such documents
and instruments as are prepared by the Servicer, the Trust Collateral Agent or
the Note Insurer and delivered to the Custodian, as the Servicer, the Trust
Collateral Agent or the Note Insurer deems necessary to permit the Servicer, in
accordance with its customary servicing procedures, to enforce the Receivable on
behalf of the Issuer and any related insurance policies (including the VSI
Policy, if any) covering the Obligor, the Receivable or Financed Vehicle. The
Custodian shall not be obligated to release any document from any Legal File
unless it receives a request for transfer of possession signed, or, if such
request is transmitted electronically, transmitted by a Servicing Officer in the
form of Exhibit F to this Agreement and a custodial letter signed, or, if such
request is transmitted electronically, transmitted by a Servicing Officer in the
form of Exhibit G to this Agreement (the "Custodial Letter"). Such Custodial
Letter shall obligate the Servicer to return such document(s) to the Custodian
when the need therefor no longer exists. At all times while any Legal File is in
the Servicer's possession, the Servicer shall hold such Legal File in trust on
behalf of the Issuer, the Indenture Trustee, the Trust Collateral Agent and the
Note Insurer.

             SECTION 3.6. COVENANTS OF THE CUSTODIAN.

         (a) The Custodian, either directly or by acting through an agent or
nominee (which agent shall not be the Originator or any Affiliate thereof,
except as provided in Section 10.8(e) hereof), shall hold the Legal File and all
other documents relating to any Receivable that comes into its possession for
the exclusive use and benefit of the Issuer and shall make disposition thereof
only in accordance with the provisions of this Agreement. The Custodian shall
maintain continuous custody of the Legal File and such other documents received
by it in secure facilities in accordance with customary standards for such
custody and shall not release such documents or

                                       14
<Page>

transfer such documents to any other party, including any subcustodian, except
as otherwise expressly provided herein.

         (b) The Custodian covenants and warrants to the Issuer, the Trust
Collateral Agent, the Servicer and the Note Insurer that to the knowledge of its
Responsible Officers, as of the related date on which the Custodian makes the
certification required under Section 3.4 with respect to the Legal Files, it
holds no adverse interest, by way of security or otherwise, in any Receivable.

         (c) Instructions to the Custodian relating to this Agreement will be
carried out by the Custodian, in accordance with the terms and provisions of
this Agreement. The Custodian is authorized to conclusively rely on any such
instruction that it believes in good faith to have been given by the Servicer
pursuant to and in accordance with the terms and provisions of this Agreement.
The Custodian may record any such instructions given by telephone, and any other
telephone discussions with respect to this Agreement.

         (d) The Custodian shall not by reason of this Agreement have a
fiduciary relationship in respect of the Servicer or LBAC or any Affiliate
thereof, and nothing in this Agreement, express or implied, is intended to or
shall be so construed so as to impose upon the Custodian any obligations in
respect of this Agreement except as expressly set forth in it. The Custodian,
acting as custodian, shall have no responsibility for (i) ascertaining or taking
action with respect to exchanges, maturities, tenders or other matters relative
to any Receivables, whether or not the Custodian has or is deemed to have
knowledge of such matters or (ii) taking any necessary steps to preserve rights
against any parties with respect to any Receivables, except as otherwise
expressly set forth herein in its capacity as Custodian. The Custodian does not
assume and shall have no responsibility for, and makes no representations as to,
monitoring the value of the Receivables and the related Legal Files. The
Custodian may rely upon the validity of documents delivered to it, without
investigation as to their authority or legal effectiveness.

         (e) Each of the Servicer, the Issuer, the Transferor and LBAC
acknowledges and agrees that the Custodian:

                  (i) shall not be responsible for any of the agreements set
         forth in the Purchase Agreement or any other documents or instruments
         other than this Agreement, including its Exhibits, but shall be
         obligated only for the performance of such duties as are specifically
         set forth in this Agreement;

                  (ii) shall not be under any obligation to exercise any of the
         rights or powers vested in it by this Agreement, or to institute,
         conduct, or defend any litigation under this Agreement or in relation
         to this Agreement, at the request, order or direction of any of the
         Noteholders or the Note Insurer pursuant to the provisions of this
         Agreement, unless such Noteholders or the Note Insurer shall have
         offered to the Custodian reasonable security or indemnity in form and
         substance reasonably satisfactory to the Custodian, against the costs,
         expenses and liabilities that may be incurred therein or thereby;

                  (iii) 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

                                       15
<Page>

         other 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, and shall have no responsibility for
         determining the accuracy thereof (except pursuant to Section 10.3(iv));
         and

                  (iv) may consult with counsel, and any 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 Agreement in
         good faith and in accordance with such Opinion of Counsel.

         (f) If the Custodian shall request instructions from the Servicer or
LBAC with respect to any act or action (including failure to act) in connection
with this Agreement, the Custodian shall be entitled to refrain from such act or
taking such action unless and until the Custodian shall have received
instructions from such Person; and the Custodian shall not incur liability to
such Person or any other Person by reason of so refraining. Without limiting the
foregoing, neither the Servicer, nor LBAC, nor any other Person shall have any
right of action whatsoever against the Custodian as a result of the Custodian's
acting or refraining from acting in accordance with the Servicer's instructions
hereunder, other than any such action arising out of the Custodian's negligence,
bad faith or willful misconduct in so acting or refraining from acting.

         (g) The Custodian shall physically segregate the Legal Files for the
Receivables from all other instruments similar in nature to such Legal Files in
its possession, and shall hold the Legal Files so as to reflect the ownership of
the Issuer. The Custodian shall mark its books, accounts and records to reflect
such fact. At its own expense, the Custodian shall maintain at all times during
which this Agreement is in effect, fidelity insurance in amounts customary for
similar transactions. Such insurance may be maintained by the Custodian in the
form of self-insurance.

                  SECTION 3.7. ISSUER'S CERTIFICATE. Within five Business Days
after each Payment Date on which Receivables shall be assigned to LBAC or the
Servicer, as applicable, pursuant to this Agreement, based on amounts deposited
to the Collection Account, notices received pursuant to this Agreement and the
information contained in the Servicer's Certificate for the related Collection
Period, identifying the Receivables purchased by LBAC pursuant to Section 3.4 or
purchased by the Servicer pursuant to Section 4.7, the Issuer shall execute an
Issuer's Certificate (in the form of Exhibit A-1 or A-2, as applicable), and
shall deliver such Issuer's Certificate, accompanied by a copy of the Servicer's
Certificate for such Collection Period to LBAC or the Servicer, as the case may
be, with a copy to the Note Insurer. The Issuer's Certificate submitted with
respect to such Payment Date shall operate, as of such Payment Date, as an
assignment, without recourse, representation, or warranty, to LBAC or the
Servicer, as the case may be, of all the Issuer's right, title, and interest in
and to such repurchased Receivable, and all security and documents relating
thereto, such assignment being an assignment outright and not for security.

                                       16
<Page>

                                   ARTICLE IV
                   ADMINISTRATION AND SERVICING OF RECEIVABLES

                  SECTION 4.1. DUTIES OF THE SERVICER. The Servicer, as agent
for the Issuer (to the extent provided herein), and in such capacity, shall
manage, service, administer and make collections on the Receivables with
reasonable care, using that degree of skill and attention customary and usual
for institutions which service motor vehicle retail installment contracts
similar to the Receivables and, to the extent more exacting, that the Servicer
exercises with respect to all comparable automotive receivables that it services
for itself or others. The Servicer's duties shall include collection and posting
of all payments, responding to inquiries of Obligors on such Receivables,
investigating delinquencies, sending payment statements to Obligors, reporting
tax information to Obligors, accounting for collections, furnishing monthly and
annual statements to the Trust Collateral Agent, the Indenture Trustee, the
Back-up Servicer and the Note Insurer with respect to payments and complying
with the terms of the Lock-Box Agreement. The Servicer shall also administer and
enforce all rights and responsibilities of the holders of the Receivables
provided for in the Dealer Agreements to the extent that such Dealer Agreements
relate to the Receivables, the Financed Vehicles or the Obligors. Without
limiting the generality of the foregoing, and subject to the servicing standards
set forth in this Agreement, the Servicer is authorized and empowered by the
Trust Collateral Agent to execute and deliver, on behalf of itself, the Issuer,
the Noteholders or any of them, any and all instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other comparable
instruments, with respect to such Receivables or to the Financed Vehicles
securing such Receivables and/or the certificates of title or other evidence of
ownership with respect to such Financed Vehicles; PROVIDED, HOWEVER, that
notwithstanding the foregoing, the Servicer shall not release an Obligor from
payment of any unpaid amount under any Receivable or waive the right to collect
the unpaid balance of any Receivable from the Obligor, except (i) pursuant to an
order from a court of competent jurisdiction, (ii) in accordance with its
customary procedures or (iii) in accordance with Section 4.2. If the Servicer
shall commence a legal proceeding to enforce a Receivable, the Issuer shall
thereupon be deemed to have automatically assigned, solely for the purpose of
collection, such Receivable to the Servicer. If in any enforcement suit or legal
proceeding it shall be held that the Servicer may not enforce a Receivable on
the ground that it shall not be a real party in interest or a holder entitled to
enforce such Receivable, the Trust Collateral Agent shall, at the Servicer's
expense and direction, take steps to enforce such Receivable, including bringing
suit in its name or the name of the Noteholders. The Servicer shall prepare and
furnish and the Trust Collateral Agent shall execute, any powers of attorney and
other documents reasonably necessary or appropriate to enable the Servicer to
carry out its servicing and administrative duties hereunder.

                  SECTION 4.2. COLLECTION AND ALLOCATION OF RECEIVABLE PAYMENTS.
Consistent with the standards, policies and procedures required by this
Agreement, the Servicer shall make reasonable efforts to collect all payments
called for under the terms and provisions of the Receivables as and when the
same shall become due and shall follow such collection procedures as it follows
with respect to all comparable automotive receivables that it services for
itself or others; PROVIDED, HOWEVER, that the Servicer shall notify each Obligor
prior to the Closing Date in the case of the Initial Receivables, and prior to
the related Subsequent Transfer Date, in the case of the Subsequent Receivables,
to make all payments with respect to the Receivables to the Lock-Box and shall
make reasonable efforts to cause Obligors to make all such payments to such

                                       17
<Page>

Lock-Box. The Servicer will provide each Obligor with a monthly statement in
order to notify such Obligors to make payments directly to the Lock-Box. The
Servicer shall allocate collections between principal and interest in accordance
with the customary servicing procedures it follows with respect to all
comparable automotive receivables that it services for itself or others and in
accordance with the terms of this Agreement. The Servicer, for so long as LBAC
is the Servicer, may grant extensions, rebates or adjustments on a Receivable in
accordance with the customary servicing procedures it follows with respect to
all comparable automotive receivables that it services for itself which shall
not modify the original due date of the Scheduled Receivable Payments on any
Receivable other than (a) in accordance with the Payment Deferment and Due Date
Change Policies, (b) in connection with a Deficient Liquidated Receivable, (c)
with the prior written consent of the Note Insurer, with respect to any other
Liquidated Receivable or (d) as otherwise required by applicable law.
Notwithstanding anything contained herein to the contrary, the Servicer may, at
its option, repurchase up to 25 Receivables in a manner consistent with Section
5.5 hereof and any such repurchased Receivable (an "Optional Repurchase
Receivable") shall not be deemed to be a Defaulted Receivable or a Liquidated
Receivable. The Servicer shall not modify the Payment Deferment and Due Date
Change Policies without the prior written consent of the Note Insurer. The
Servicer shall notify Moody's of any modification to the Payment Deferment and
Due Date Change Policies. If the Servicer is not LBAC, the Servicer may not make
any extension on a Receivable without the prior written consent of the Note
Insurer. The Servicer may in its discretion waive any late payment charge or any
other fees that may be collected in the ordinary course of servicing a
Receivable if it would forgo collection of such amount in accordance with its
customary procedures. Notwithstanding anything to the contrary contained herein,
the Servicer (i) shall not agree to any alteration of the interest rate on any
Receivable or of the amount of any Scheduled Receivable Payment on any
Receivable, except (a) as otherwise required by applicable law, (b) with respect
to a Deficient Liquidated Receivable and (c) with the prior written consent of
the Note Insurer, with respect to any other Liquidated Receivable, and (ii)
shall not agree to any modification that would result in a material adverse
effect on a Receivable (other than a Deficient Liquidated Receivable and, with
the prior written consent of the Note Insurer, any other Liquidated Receivable)
or the interest therein of the Issuer, the Noteholders or the Note Insurer other
than a modification in accordance with the Payment Deferment and Due Date Change
Policies.

                  On each Business Day, the Servicer shall prepare and transmit
to the Trust Collateral Agent and the Back-up Servicer in a form acceptable to
the Trust Collateral Agent and the Back-up Servicer, a record setting forth the
aggregate amount of collections on the Receivables processed by the Servicer on
the second preceding Business Day.

                  SECTION 4.3. REALIZATION UPON RECEIVABLES.

         (a) On behalf of the Issuer, the Noteholders and the Note Insurer, the
Servicer shall use its best efforts, consistent with the servicing procedures
set forth herein, to repossess or otherwise convert the ownership of the
Financed Vehicle securing any Receivable as to which the Servicer shall have
determined eventual payment in full is unlikely. The Servicer shall commence
efforts to repossess or otherwise convert the ownership of a Financed Vehicle on
or prior to the date that an Obligor has not paid at least 95% of a Scheduled
Receivable Payment thereon for 120 consecutive days or more; PROVIDED, HOWEVER,
that the Servicer may elect not to

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<Page>

commence such efforts within such time period if in its good faith judgment it
determines either that it would be impracticable to do so or that the proceeds
ultimately recoverable with respect to such Receivable would be increased by
forbearance. The Servicer shall follow such customary and usual practices and
procedures as it shall deem necessary or advisable in its servicing of
automotive receivables, consistent with the standards of care set forth in
Section 3.1, which may include reasonable efforts to realize upon any recourse
to Dealers and selling the Financed Vehicle at public or private sale. The
foregoing shall be subject to the provision that, in any case in which the
Financed Vehicle shall have suffered damage, the Servicer shall not expend funds
in connection with the repair or the repossession of such Financed Vehicle
unless it shall determine in its discretion that such repair and/or repossession
will increase the proceeds ultimately recoverable with respect to such
Receivable by an amount greater than the amount of such expenses. All
Liquidation Proceeds and Recoveries received shall be remitted directly by the
Servicer to the Collection Account, without deposit into any intervening account
as soon as practicable, but in no event later than the second Business Day after
receipt thereof.

                  (i) The Servicer agrees that within 45 days from the Closing
         Date or the related Subsequent Transfer Date, as applicable, it shall
         make such filings and effect such notices as are necessary under
         Section 9-114(1) of the New York UCC (or comparable section of the UCC
         of any applicable state) to preserve its ownership interest (or
         security interest, as the case may be) in any repossessed Financed
         Vehicles delivered for sale to Dealers.

                  (ii) The Servicer agrees that at any time after 45 days from
         the Closing Date there will be (a) no more than 25 repossessed Financed
         Vehicles in the aggregate delivered for sale to any Dealer and (b) no
         more than 50 repossessed Financed Vehicles in the aggregate delivered
         for the sale to all Dealers with respect to which the actions referred
         to in (b)(1) above have not been effected. The Servicer agrees that
         prior to delivering additional Financed Vehicles for sale to any such
         Dealer, it shall make such filings and effect such notices as are
         necessary under Section 9-114(1) of the New York UCC (or comparable
         section of the applicable UCC) to preserve its ownership interest (or
         security interest, as the case may be) in any such repossessed Financed
         Vehicle.

             SECTION 4.4. PHYSICAL DAMAGE INSURANCE; OTHER INSURANCE.

         (a) The Servicer shall continue to maintain the VSI Policy or another
collateral protection insurance policy providing physical damage insurance
coverage to at least the same extent as the VSI Policy with respect to all
Financed Vehicles, unless the Servicer shall have received the prior written
consent of the Note Insurer allowing the Servicer to no longer maintain any of
such polices. The Servicer, in accordance with the servicing procedures and
standards set forth herein, shall require that (i) each Obligor shall have
obtained insurance covering the Financed Vehicle, as of the date of the
execution of the Receivable, insuring against loss and damage due to fire,
theft, transportation, collision and other risks generally covered by
comprehensive and collision coverage and each Receivable requires the Obligor to
maintain such physical loss and damage insurance naming LBAC and its successors
and assigns as an additional insured, (ii) each Receivable that finances the
cost of premiums for credit life and credit accident and health insurance is
covered by an insurance policy or certificate naming LBAC as policyholder
(creditor) and (iii) as to each Receivable that finances the cost of an

                                       19
<Page>

extended service contract, the respective Financed Vehicle which secures the
Receivable is covered by an extended service contract.

         (b) To the extent applicable, the Servicer shall not take any action
which would result in noncoverage under any of the insurance policies referred
to in Section 4.4(a) which, but for the actions of the Servicer, would have been
covered thereunder. The Servicer, on behalf of the Trust Collateral Agent, shall
take such reasonable action as shall be necessary to permit recovery under any
of the foregoing insurance policies. Any amounts collected by the Servicer under
any of the foregoing insurance policies shall be deposited in the Collection
Account pursuant to Section 5.2. In the event of the cancellation or non-renewal
of the insurance referred to in Section 4.4(a)(i) above with respect to any
Financed Vehicle, the Servicer will endeavor, in accordance with its customary
servicing standards and procedures, to cause the related Obligor to obtain a
replacement insurance policy. In no event shall the Servicer be required to
force place insurance on a Financed Vehicle.

             SECTION 4.5. MAINTENANCE OF SECURITY INTERESTS IN FINANCED
                          VEHICLES.

         (a) Consistent with the policies and procedures required by this
Agreement, the Servicer shall take such steps as are necessary to maintain
perfection of the security interest created in the name of LBAC by each
Receivable in the related Financed Vehicle, including, but not limited to,
obtaining the execution by the Obligors and the recording, registering, filing,
re-recording, re-registering and refiling of all security agreements, financing
statements and continuation statements or instruments as are necessary to
maintain the security interest granted by Obligors under the respective
Receivables. The Trust Collateral Agent hereby authorizes the Servicer to take
such steps as are necessary to re-perfect or continue the perfection of such
security interest on behalf of the Issuer in the event of the relocation of a
Financed Vehicle or for any other reason.

         (b) Upon the occurrence of an Insurance Agreement Event of Default, the
Note Insurer may (so long as a Note Insurer Default shall not have occurred and
be continuing) instruct the Trust Collateral Agent and the Servicer to take or
cause to be taken, or, if a Note Insurer Default shall have occurred and be
continuing, upon the occurrence of a Servicer Termination Event, either the
Trust Collateral Agent or the Trust Collateral Agent acting at the direction of
the Majorityholders shall direct the Servicer to take and the Servicer shall
take or cause to be taken such action as may, in the opinion of counsel to the
Note Insurer (or, if a Note Insurer Default shall have occurred and be
continuing, the Trust Collateral Agent), which opinion shall not be an expense
of the Note Insurer or the Trust Collateral Agent (as applicable), be necessary
to perfect or reperfect the security interests in the Financed Vehicles securing
the Receivables in the name of the Trust Collateral Agent on behalf of the
Issuer by amending the title documents of such Financed Vehicles to reflect the
security interest of the Trust Collateral Agent in the related Financed Vehicles
or by such other reasonable means as may, in the opinion of counsel to the Note
Insurer or the Trust Collateral Agent (as applicable), which opinion shall not
be an expense of the Note Insurer or the Trust Collateral Agent, be necessary or
prudent. The Servicer hereby agrees to pay all expenses related to such
perfection or reperfection and to take all action necessary therefor. In
addition, prior to the occurrence of an Insurance Agreement Event of Default,
the Note Insurer may (unless a Note Insurer Default shall have occurred and be
continuing) instruct the Trust Collateral Agent and the Servicer to take or
cause to be taken such

                                       20
<Page>

action as may, in the opinion of counsel to the Note Insurer, be necessary to
perfect or reperfect the security interest in the Financed Vehicles securing the
Receivables in the name of the Trust Collateral Agent on behalf of the Issuer,
including by amending the title documents of such Financed Vehicles to reflect
the security interest of the Trust Collateral Agent in the related Financed
Vehicle or by such other reasonable means as may, in the opinion of counsel to
the Note Insurer, be necessary or prudent; PROVIDED, HOWEVER, that if the Note
Insurer requests (unless a Note Insurer Default shall have occurred and be
continuing) that the title documents be amended prior to the occurrence of an
Insurance Agreement Event of Default, the out-of-pocket expenses of the Servicer
or the Trust Collateral Agent in connection with such action shall be reimbursed
to the Servicer or the Trust Collateral Agent, as applicable, by the Note
Insurer.

                  In addition to the foregoing, in the event any of the Servicer
Termination Events described in Section 9.1(iii) or (iv) shall have occurred, or
in the event LBAC shall have been removed or replaced as Servicer pursuant to
Section 8.3, Section 8.5, or otherwise pursuant to Section 9.1, then LBAC and/or
the Servicer shall immediately cause each Lien Certificate for a Financed
Vehicle to be marked to reflect the security interest of the Trust Collateral
Agent in the Financed Vehicle at the expense of LBAC.

                  The Servicer hereby makes, constitutes and appoints the Trust
Collateral Agent acting through its duly appointed officers or any of them, its
true and lawful attorney, for it and in its name and on its behalf, for the sole
and exclusive purpose of authorizing said attorney to execute and deliver as
attorney-in-fact or otherwise, any and all documents and other instruments and
to do or accomplish all other acts or things necessary or appropriate to show
the Trust Collateral Agent as lienholder or secured party on the related Lien
Certificates relating to a Financed Vehicle.

                  SECTION 4.6. ADDITIONAL COVENANTS OF SERVICER. The Servicer
hereby makes the following covenants to the other parties hereto and the Note
Insurer on which the Trust Collateral Agent shall rely in accepting the
Receivables in trust and on which the Note Insurer shall rely in issuing the
Note Policy: (i) the Servicer shall not release the Financed Vehicle securing
any Receivable from the security interest granted by such Receivable in whole or
in part except in the event of payment in full by the Obligor thereunder or
repossession or other liquidation of such Financed Vehicle, (ii) the Servicer
shall not impair the rights of the Noteholders, the Issuer or the Note Insurer
in such Receivables, (iii) the Servicer shall not modify a Receivable, except in
accordance with Section 4.2, and (iv) the Servicer shall service the Receivables
as required by the terms of this Agreement and in material compliance with its
current servicing procedures for servicing of all its other comparable motor
vehicle receivables.

                  SECTION 4.7. PURCHASE OF RECEIVABLES UPON BREACH. The
Servicer, the Transferor, the Issuer, the Custodian or the Trust Collateral
Agent shall inform the other parties hereto and the Note Insurer promptly, in
writing, upon the discovery by the Servicer, the Transferor, the Issuer or a
Responsible Officer of the Trust Collateral Agent or the Custodian, as the case
may be, of any breach of the provisions of Section 4.2 relating to modifications
of the Receivables, or any breach of Sections 4.4, 4.5 or 4.6; PROVIDED,
HOWEVER, that the failure to give such notice shall not affect any obligation of
the Servicer hereunder. Unless the breach shall have been cured by the last day
of the second Collection Period following such discovery by or notice to the
Servicer of such breach, the Servicer shall purchase any Receivable with respect
to

                                       21
<Page>

which such breach has a material adverse effect on such Receivable or the
interest therein of the Issuer, the Noteholders or the Note Insurer. In
consideration of the purchase of such Receivable, the Servicer shall remit the
Purchase Amount in the manner specified in Section 5.5. For purposes of this
Section, the Purchase Amount shall, whenever applicable, consist in part of a
release by the Servicer of all rights to receive Simple Interest Excess with
respect to the related Receivable. The sole remedy of the Trust Collateral
Agent, the Issuer, the Note Insurer or the Noteholders with respect to a breach
of the provisions of Section 4.2 relating to modifications of the Receivables or
any breach of Sections 4.4, 4.5 or 4.6 shall be to require the Servicer to
repurchase Receivables pursuant to this Section 4.7; PROVIDED, HOWEVER, that the
Servicer shall indemnify the Trust Collateral Agent, the Indenture Trustee, the
Collateral Agent, the Back-up Servicer, the Custodian, the Transferor, the Note
Insurer, the Issuer and the Noteholders and each of their respective officers,
employees, directors, agents and representatives against all costs, expenses,
losses, damages, claims and liabilities, including reasonable fees and expenses
of counsel, which may be asserted against or incurred by any of them as a result
of third party claims arising out of the events or facts giving rise to such
breach. The Transferor shall have no obligation to repurchase the Receivables
upon a breach of the provisions of Section 4.2 relating to modifications of the
Receivables, or any breach of Sections 4.4, 4.5 or 4.6. The Transferor shall
have no liability for actions taken or omitted to be taken by the Servicer
pursuant to this Section 4.7.

             SECTION 4.8. SERVICING FEE. The Servicing Fee for the initial
Payment Date shall equal the product of (a) one twelfth of the Servicing Fee
Rate and (b) the Original Pool Balance. Thereafter, the Servicing Fee for a
Payment Date shall equal the product of (i) one-twelfth of the Servicing Fee
Rate and (ii) the Pool Balance as of the last day of the second preceding
Collection Period. The Servicing Fee shall in addition include all late fees,
prepayment charges including, in the case of a Precomputed Receivable that is
prepaid in full, to the extent not required by law to be remitted to the related
Obligor, the difference between the amounts received upon prepayment in full of
such Precomputed Receivable and the then outstanding Principal Balance of such
Precomputed Receivable and accrued interest thereon (calculated pursuant to the
Simple Interest Method) and other administrative fees or similar charges allowed
by applicable law with respect to Receivables, collected (from whatever source)
on the Receivables.

             SECTION 4.9. SERVICER'S CERTIFICATE.

         (a) By 10:00 a.m., New York City time, on each Determination Date, the
Servicer shall deliver to the Issuer, the Trust Collateral Agent, the Indenture
Trustee, the Back-up Servicer, the Collateral Agent, the Transferor, the Note
Insurer, GCFP and the Rating Agencies, a Servicer's Certificate containing all
information necessary to make the payments pursuant to Section 5.6 (including,
if required, withdrawals from the Spread Account), for the Collection Period
preceding the date of such Servicer's Certificate and all information necessary
for the Trust Collateral Agent to send statements to Noteholders and the Note
Insurer pursuant to Section 5.7. Receivables to be purchased by the Servicer or
to be purchased by LBAC shall be identified by the Servicer by account number
with respect to such Receivable (as specified in the Schedule of Receivables).

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<Page>

         (b) In addition to the information required by Section 4.9(a), the
Servicer shall include in the copy of the Servicer's Certificate delivered to
the Note Insurer (i) the Average Delinquency Ratio, the Cumulative Default Rate,
and the Cumulative Loss Rate (as such terms are defined in the Spread Account
Agreement), (ii) whether any Trigger Event (as such term is defined in the
Spread Account Agreement) has occurred as of such Determination Date, (iii)
whether any Trigger Event that may have occurred as of a prior Determination
Date is Deemed Cured (as defined in the Spread Account Agreement) as of such
Determination Date and (iv) whether to the knowledge of the Servicer an
Insurance Agreement Event of Default has occurred. The Servicer shall in
addition give notice of the occurrence of any Trigger Event or any Insurance
Agreement Event of Default to each Rating Agency.

             SECTION 4.10. ANNUAL STATEMENT AS TO COMPLIANCE; NOTICE OF DEFAULT.

         (a) The Servicer shall deliver to the Issuer, the Trust Collateral
Agent, the Indenture Trustee, the Back-up Servicer, the Collateral Agent, the
Transferor, the Issuer and the Note Insurer, on or before March 31 of each year
beginning March 31, 2001, an Officer's Certificate, dated as of December 31 of
the preceding calendar year, stating that (i) a review of the activities of the
Servicer during such preceding calendar year and of its performance under this
Agreement has been made under such officer's supervision and (ii) to the best of
such officer's knowledge, based on such review, the Servicer has fulfilled all
its obligations under this Agreement throughout such year, or, if there has been
a default in the fulfillment of any such obligation, specifying each such
default known to such officer and the nature and status thereof. The Trust
Collateral Agent shall send a copy of such certificate to the Rating Agencies.

         (b) The Servicer shall deliver to the Issuer, the Trust Collateral
Agent, the Indenture Trustee, the Back-up Servicer, the Collateral Agent, the
Transferor, the Issuer, the Note Insurer and the Rating Agencies, promptly after
having obtained knowledge thereof, but in no event later than two (2) Business
Days after having obtained such knowledge, written notice in an Officer's
Certificate of any event which with the giving of notice or lapse of time, or
both, would become a Servicer Termination Event under Section 9.1.

             SECTION 4.11. ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S
REPORT. The Servicer shall cause a firm of nationally recognized independent
certified public accountants, who may also render other services to the Servicer
or to the Transferor, to deliver to the Issuer, the Trust Collateral Agent, the
Indenture Trustee, the Back-up Servicer, the Collateral Agent, the Issuer, the
Noteholders, the Note Insurer and each Rating Agency on or before April 30 of
each year beginning April 30, 2001, a report dated as of December 31 of the
preceding calendar year and reviewing the Servicer's activities during such
preceding calendar year, addressed to the Board of Directors of the Servicer,
and to the Trust Collateral Agent, the Back-up Servicer, the Collateral Agent,
the Issuer, the Transferor and the Note Insurer, to the effect that such firm
has audited the financial statements of the Servicer and issued its report
therefor and that such audit (a) was made in accordance with generally accepted
auditing standards, and accordingly included such tests of the accounting
records and such other auditing procedures as such firm considered necessary in
the circumstances; (b) included tests relating to automotive loans serviced for
others in accordance with the requirements of the Uniform Single Attestation
Program for Mortgage Bankers (the "Program"), to the extent the procedures in
the Program are applicable to the servicing obligations set forth in this
Agreement; (c) included an examination of

                                       23
<Page>

the delinquency and loss statistics relating to the Servicer's portfolio of
automobile, van, sport utility vehicle and light duty truck installment sales
contracts; and (d) except as described in the report, disclosed no exceptions or
errors in the records relating to automobile, van, sport utility vehicle and
light duty truck loans serviced for others that, in the firm's opinion, the
Program requires such firm to report. The accountant's report shall further
state that (1) a review in accordance with agreed upon procedures was made of
three randomly selected Servicer's Certificates; (2) except as disclosed in the
report, no exceptions or errors in the Servicer's Certificates were found; and
(3) the delinquency and loss information relating to the Receivables contained
in the Servicer's Certificates were found to be accurate.

                  The report will also indicate that the firm is independent of
the Servicer within the meaning of the Code of Professional Ethics of the
American Institute of Certified Public Accountants.

                  SECTION 4.12. SERVICER EXPENSES. The Servicer shall be
required to pay all expenses incurred by it in connection with its activities
under this Agreement (including taxes imposed on the Servicer, expenses incurred
by the Servicer in connection with payments and reports to Noteholders, the
Trust Collateral Agent and the Note Insurer and all other fees and expenses of
the Issuer including taxes levied or assessed against the Issuer, and claims
against the Issuer in respect of indemnification not expressly stated under this
agreement to be for the account of the Issuer).

                  SECTION 4.13. RETENTION AND TERMINATION OF SERVICER. The
Servicer hereby covenants and agrees to act as such under this Agreement for an
initial term, commencing on the Closing Date and ending on March 31, 2000, which
term shall be extendible by the Note Insurer for successive quarterly terms
ending on each successive June 30, September 30, December 31 and March 31 (or,
pursuant to revocable written standing instructions from time to time to the
Servicer and the Trust Collateral Agent, for any specified number of terms
greater than one), until the termination of the Issuer. Each such notice
(including each notice pursuant to standing instructions, which shall be deemed
delivered at the end of successive quarterly terms for so long as such
instructions are in effect) (a "Servicer Extension Notice") shall be delivered
by the Note Insurer to the Trust Collateral Agent and the Servicer. The Servicer
hereby agrees that, as of the date hereof and upon its receipt of any such
Servicer Extension Notice, the Servicer shall become bound, for the initial term
beginning on the date hereof and for the duration of the term covered by such
Servicer Extension Notice, to continue as the Servicer subject to and in
accordance with the other provisions of this Agreement. Until such time as a
Note Insurer Default shall have occurred and be continuing, the Trust Collateral
Agent agrees that if as of the fifteenth day prior to the last day of any term
of the Servicer, the Trust Collateral Agent shall not have received any Servicer
Extension Notice from the Note Insurer, the Trust Collateral Agent will, within
five days thereafter, give written notice of such non-receipt to the Note
Insurer, the Back-up Servicer (or any alternate successor servicer appointed by
the Note Insurer pursuant to Section 8.5) and the Servicer and the Servicer's
terms shall not be extended unless a Servicer Extension Notice is received on or
before the last day of such term.

                  SECTION 4.14. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION
REGARDING RECEIVABLES. The Servicer shall provide to representatives of the
Indenture Trustee, the Trust Collateral Agent, the Collateral Agent, the Back-up
Servicer, the Transferor, the Issuer and the

                                       24
<Page>

Note Insurer reasonable access to documentation and computer systems and
information regarding the Receivables and shall provide such access to
Noteholders in such cases where the Noteholders are required by applicable law
or regulation to review such documentation. In each case, such access shall be
afforded without charge but only upon reasonable request and during normal
business hours. Nothing in this Section 4.14 shall derogate from the obligation
of the Servicer to observe any applicable law prohibiting disclosure of
information regarding the Obligors, and the failure of the Servicer to provide
access as provided in this Section 4.14 as a result of such obligation shall not
constitute a breach of this Section 4.14.

             SECTION 4.15. VERIFICATION OF SERVICER'S CERTIFICATE.

         (a) On or before the fifth Business Day of each month, the Servicer
will deliver to the Trust Collateral Agent and the Back-up Servicer a computer
diskette (or other electronic transmission) in a format acceptable to the Trust
Collateral Agent and the Back-up Servicer containing such information with
respect to the Receivables as of the close of business on the last day of the
preceding Collection Period as is necessary for preparation of the Servicer's
Certificate. The Back-up Servicer shall use such computer diskette (or other
electronic transmission) to verify the information specified in Section
4.15(b)(iii) contained in the Servicer's Certificate delivered by the Servicer,
and the Back-up Servicer shall certify to the Note Insurer that it has verified
the Servicer's Certificate in accordance with this Section 4.15 and shall notify
the Servicer, the Note Insurer and the Trust Collateral Agent of any
discrepancies, in each case, on or before the related Deficiency Claim Date. In
the event that the Back-up Servicer reports any discrepancies, the Servicer and
the Back-up Servicer shall attempt to reconcile such discrepancies prior to the
related Deficiency Claim Date, but in the absence of a reconciliation, the
Servicer's Certificate shall control for the purpose of calculations and
payments with respect to the related Payment Date. In the event that the Back-up
Servicer and the Servicer are unable to reconcile discrepancies with respect to
a Servicer's Certificate by the related Payment Date, (i) the Back-up Servicer
will notify the Note Insurer and the Trust Collateral Agent, and (ii) the
Servicer shall cause a firm of independent certified public accountants, at the
Servicer's expense, to audit the Servicer's Certificate and, prior to the fifth
calendar day of the following month, reconcile the discrepancies. The effect, if
any, of such reconciliation shall be reflected in the Servicer's Certificate for
such next succeeding Determination Date. In addition, the Servicer shall, if so
requested by the Note Insurer (unless a Note Insurer Default shall have occurred
and be continuing) deliver to the Back-up Servicer (i) within five (5) Business
Days of demand therefor a computer tape containing as of the close of business
on the date of demand all of the data maintained by the Servicer in computer
format in connection with servicing the Receivables and (ii) within fifteen (15)
Business Days of demand therefor a copy of such other information as is
reasonably requested by the Note Insurer for the purpose of reconciling such
discrepancies. Other than the duties specifically set forth in this Agreement,
the Back-up Servicer shall have no obligations hereunder, including, without
limitation, to supervise, verify, monitor or administer the performance of the
Servicer. The Back-up Servicer shall have no liability for any actions taken or
omitted by the Servicer. The duties and obligations of the Back-up Servicer
shall be determined solely by the express provisions of this Agreement and no
implied covenants or obligations shall be read into this Agreement against the
Back-up Servicer.

                                       25
<Page>

         (b) The Back-up Servicer shall review each Servicer's Certificate
delivered pursuant to Section 4.15(a) and shall, based upon the information
provided from the Servicer under Section 4.15(a):

                  (i) confirm that such Servicer's Certificate is complete on
         its face;

                  (ii) load the computer diskette (which shall be in a format
         acceptable to the Back-up Servicer) received from the Servicer pursuant
         to Section 4.15(a) hereof, confirm that such computer diskette is in a
         readable form and calculate the Principal Balance of each Receivable
         based on the Principal Balance of such Receivable as of the preceding
         Payment Date (as set forth in such Servicer's Certificate) and the
         current principal payment for such Receivable (as set forth in such
         Servicer's Certificate) and compare such calculation to that set forth
         in the Servicer's Certificate (and give notice of any discrepancy to
         the Note Insurer); and

                  (iii) recalculate the Available Funds, the Class A-1 Payment
         Amount, the Class A-1 Principal Payment Amount, the Class A-1 Interest
         Payment Amount, the Class A-2 Payment Amount, the Class A-2 Principal
         Payment Amount, the Class A-2 Interest Payment Amount, the Class A
         Payment Amount, the Class A Principal Payment Amount, the Class A
         Interest Payment Amount, the Class B Payment Amount, the Class B
         Interest Payment Amount, the Class B Principal Payment Amount, the
         Back-up Servicer Fee, the Servicing Fee, the Indenture Trustee Fee, the
         Custodian Fee, the amount on deposit in the Class B Reserve Account,
         the amount on deposit in the Spread Account and the Premium in the
         Servicer's Certificate based solely on the balances and calculations
         specifically set forth in the Servicer's Certificate, compare such
         calculations to those set forth in the Servicer's Certificate. To the
         extent of any discrepancy, the Back-up Servicer shall give notice
         thereof to the Note Insurer. The Back-up Servicer's obligation shall be
         limited to the mathematical recalculation of the amounts set forth in
         this Section 4.15(b)(iii) based on the Servicer's Certificate.

                  SECTION 4.16. FIDELITY BOND. The Servicer shall maintain a
fidelity bond in such form and amount as is customary for entities acting as
custodian of funds and documents in respect of consumer contracts on behalf of
institutional investors.

                  SECTION 4.17. DELEGATION OF DUTIES. The Servicer may at any
time delegate duties under this Agreement to sub-contractors who are in the
business of servicing automotive receivables with the prior written consent of
the Controlling Party; PROVIDED, HOWEVER, that no such delegation or
sub-contracting of duties by the Servicer shall relieve the Servicer of its
responsibility with respect to such duties. In the event the Servicer shall for
any reason no longer be the servicer of the Receivables (including by reason of
a Servicer Termination Event), the Back-up Servicer, its designee or any
successor Servicer shall assume all of the rights and obligations of the
predecessor Servicer under one or more subservicing agreements that may have
been entered into by the predecessor Servicer by giving notice of such
assumption to the related subservicer or subservicers within ten (10) Business
Days of the termination of the Servicer as servicer of the Receivables;
PROVIDED, HOWEVER, that the Back-up Servicer may elect to terminate a
subservicing agreement with the prior written consent of the Note Insurer, so
long as no Note Insurer Default is then continuing. If the Back-up Servicer does
not elect to assume

                                       26
<Page>

any subservicing agreement, any and all costs of termination shall be at the
predecessor Servicer's expense. Upon the giving of such notice, the Back-up
Servicer, its designee or the successor Servicer shall be deemed to have assumed
all of the predecessor Servicer's interest therein and to have replaced the
predecessor Servicer as a party to the subservicing agreement to the same extent
as if the subservicing agreement had been assigned to the assuming party except
that the predecessor Servicer and the subservicer, if any, shall not thereby be
relieved of any liability or obligations accrued up to the date of the
replacement of the Servicer under the subservicing agreement and the
subservicer, if any, shall not be relieved of any liability or obligation to the
predecessor Servicer that survives the assignment or termination of the
subservicing agreement. The Back-up Servicer shall notify each Rating Agency and
the Note Insurer if any subservicing agreement is assumed by the Back-up
Servicer, its designee or the successor Servicer. The predecessor Servicer
shall, upon request of the Trust Collateral Agent, the Back-up Servicer or any
successor Servicer, but at the expense of the predecessor Servicer, deliver to
the assuming party all documents and records relating to the subservicing
agreement and the Receivables then being serviced and an accounting of amounts
collected and held by it and otherwise use its reasonable efforts to effect the
orderly and efficient transfer of the subservicing agreement to the assuming
party.

             SECTION 4.18. DELIVERY OF BACK-UP TAPES OF BACK-UP SERVICER.

         (a) In addition to the information to be delivered by the Servicer to
the Back-up Servicer on or before the fifth Business Day of each month pursuant
to Section 4.15(a), the Servicer shall deliver to the Back-up Servicer, or its
designated agent, a computer diskette (or other electronic transmission), in a
format acceptable to the Back-up Servicer or its designated agent, as the case
may be, with the loan master file and history information in the form attached
hereto as Exhibit B-2 on or prior to the Closing Date in the case of the Initial
Receivables, and on or prior to the related Subsequent Transfer Date in the case
of Subsequent Receivables, which loan master file and history information shall
be sufficiently detailed to enable the Back-up Servicer to maintain records
sufficient to assume the role of successor Servicer pursuant to this Agreement.

         (b) In addition to the information required to be delivered by the
Servicer to the Back-up Servicer or its designated agent on or before the fifth
Business Day of each month pursuant to Section 4.15(a) and on or prior to the
Closing Date and each Subsequent Transfer Date pursuant to Section 4.18(a), the
Servicer shall deliver the loan master file and history information to the
Back-up Servicer or its designated agent on the Determination Date occurring in
June 2000 (with respect to the period from and including the Initial Cutoff Date
to the last day of the related Collection Period) and on the Determination Date
occurring every six months thereafter in the form attached hereto as Exhibit B-2
in writing and on a computer diskette (or other electronic transmission) in a
format acceptable to the Back-up Servicer or its designated agent, as the case
may be, and as at such other times as may be requested by the Note Insurer or
the Back-up Servicer upon prior written notice to the Servicer, provided that
the Back-up Servicer shall deliver a copy of any such notice by the Back-up
Servicer to the Note Insurer simultaneously with its delivery of such notice to
the Servicer.

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                                   ARTICLE V
                               ACCOUNTS; PAYMENTS;
                            STATEMENTS TO NOTEHOLDERS

             SECTION 5.1. ACCOUNTS; LOCK-BOX ACCOUNT.

         (a) The Servicer has established the Lock-Box Account as two Eligible
Accounts, one established with Chase Texas entitled "Long Beach Acceptance
Corp., Chase Texas, Agent Account--Auto Loan Programs," account number
00100916395, and one established with Bank of America National Trust and Savings
Association entitled "Long Beach Acceptance Corp., Chase Texas, Agent
Account--Auto Loan Programs," account number 14572-02900; PROVIDED, that the
Servicer, with the prior written consent of the Note Insurer, may from time to
time (a) establish additional or substitute Lock-Box Accounts, each of which
shall be an Eligible Account, and (b) close or terminate the use of any of the
aforementioned accounts or any subsequently established accounts, each of which
accounts, at such time, shall no longer be deemed to be a Lock-Box Account;
PROVIDED, FURTHER, that pursuant to the Lock-Box Agreement, the Lock-Box
Processor and no other person, save the Trust Collateral Agent or the Servicer,
has authority to direct disposition of funds related to the Receivables on
deposit in the Lock-Box Account consistent with the provisions of this Agreement
and the Lock-Box Agreement. The Trust Collateral Agent shall have no liability
or responsibility with respect to the Lock-Box Processor's or the Servicer's
directions or activities as set forth in the preceding sentence. The Lock-Box
Account shall be established pursuant to and maintained in accordance with the
Lock-Box Agreement and shall be a demand deposit account which shall at all
times be an Eligible Account, initially established and maintained with Chase
Manhattan or, at the request of the Note Insurer, an Eligible Account satisfying
clause (i) of the definition thereof. The Servicer has established and shall
maintain the Lock-Box at a United States Post Office Branch. Notwithstanding the
Lock-Box Agreement or any of the provisions of this Agreement relating to the
Lock-Box and the Lock-Box Agreement, the Servicer shall remain obligated and
liable to the Trust Collateral Agent and the Noteholders for servicing and
administering the Receivables and the other Trust Assets in accordance with
provisions of this Agreement without diminution of such obligation or liability
by virtue thereof.

             In the event the Servicer shall for any reason no longer be
acting as such, the Lock-Box Agreement shall terminate in accordance with its
terms and funds on deposit in the Lock-Box Account shall be distributed by Chase
Manhattan, as agent for the beneficial owners of funds in the Lock-Box Account
at such time (including the Issuer), and Chase Manhattan shall deposit any such
funds relating to the Receivables to such other account as shall be identified
by the Back-up Servicer or successor Servicer for deposit therein; PROVIDED,
HOWEVER, that the outgoing Servicer shall not thereby be relieved of any
liability or obligations on the part of the outgoing Servicer to the Lock-Box
Bank under such Lock-Box Agreement. The outgoing Servicer shall, upon request of
the Trust Collateral Agent, but at the expense of the outgoing Servicer, deliver
to the successor Servicer all documents and records relating to the Lock-Box
Agreement and an accounting of amounts collected and held in the Lock-Box
Account or held by the Lock-Box Processor in respect of the Receivables and
otherwise use its best efforts to effect the orderly and efficient transfer of
any Lock-Box Agreement to the successor Servicer. In the event that the Lock-Box
Account fails at any time to qualify as an Eligible Account, the Servicer, at
its expense, shall cause the Lock-Box Bank to deliver, at the direction of the
Controlling Party

                                       28
<Page>

to the Trust Collateral Agent or a successor Lock-Box Bank, all documents and
records relating to the Receivables and all amounts held (or thereafter
received) on deposit in the Lock Box Account or held by the Lock-Box Processor
in respect of the Receivables (together with an accounting of such amounts) and
shall otherwise use its best efforts to effect the orderly and efficient
transfer of the lock-box arrangements, and the Servicer shall promptly notify
the Obligors to make payments to any new Lock-Box.

         (b) In addition to the Lock-Box Account, the Trust Collateral Agent
shall establish, with itself, the Collection Account and the Note Account in the
name of the Issuer for the benefit of the Noteholders and the Note Insurer, the
Pre-Funding Account in the name of the Issuer for the benefit of the Noteholders
and the Note Insurer, the Capitalized Interest Account in the name of the Issuer
for the benefit of the Noteholders and the Note Insurer, and the Policy Payments
Account in the name of the Issuer for the benefit of the Noteholders. The
Collection Account, the Note Account, the Pre-Funding Account, the Capitalized
Interest Account and the Policy Payments Account shall be Eligible Accounts
initially established with the Trust Collateral Agent; PROVIDED, HOWEVER, if any
of such accounts shall cease to be an Eligible Account, the Servicer, with the
consent of the Note Insurer (so long as no Note Insurer Default has occurred and
is continuing), within five (5) Business Days shall, cause such accounts to be
moved to an institution so that such account meets the definition of Eligible
Account. The Servicer shall promptly notify the Rating Agencies and the
Transferor of any change in the location of any of the aforementioned accounts.

             All amounts held in the Collection Account and the Pre-Funding
Account shall be invested by the Trust Collateral Agent at the written direction
of the Transferor in Eligible Investments in the name of the Trust Collateral
Agent on behalf of the Issuer and shall mature no later than one Business Day
immediately preceding the Payment Date next succeeding the date of such
investment. In no event shall the Trust Collateral Agent be liable for any
insufficiency in the Collection Account resulting from any investment loss in
any Eligible Account. Such written direction shall certify that any such
investment is authorized by this Section. No investment may be sold prior to its
maturity. Amounts in the Note Account and the Policy Payments Account shall not
be invested. The amount of earnings on investments of funds in the Collection
Account during the Collection Period related to each Payment Date shall be
deposited into the Note Account on each Payment Date, and shall be available for
payment pursuant to Section 5.6(c). The amount of earnings on investments of
funds in the Pre-Funding Account during the Collection Period related to each
Payment Date shall be deposited in the Note Account on each Payment Date in an
amount not to exceed the Pre-Funding Interest Amount, and such amount shall be
available for distribution pursuant to Section 5.6(c), and any remaining
investment earnings on the funds in the Pre-Funding Account shall remain on
deposit in the Pre-Funding Account and shall be distributed by the Trust
Collateral Agent to the Transferor on the Final Funding Period Payment Date. The
amount of earnings on investments of funds in the Capitalized Interest Account
during each Collection Period shall be deposited into the Capitalized Interest
Account on the Payment Date relating to such Collection Period prior to making
any transfer from the Capitalized Interest Account to the Note Account pursuant
to Section 5.6(a)(iii). For purposes of this paragraph, the Trust Collateral
Agent will take delivery of the Eligible Investments in accordance with Schedule
C.

                                       29
<Page>

         (c) The Trust Collateral Agent, pursuant to the Servicer's written
instruction, shall on or prior to each Payment Date (and prior to the transfer
from the Collection Account to the Note Account described in Section 5.6(a)(i))
transfer from the Collection Account to the Servicer, as additional servicing
compensation, the amount, if any, required to be paid to the Servicer pursuant
to Section 5.12.

             SECTION 5.2. COLLECTIONS. The Servicer shall use reasonable
efforts to cause the Lock-Box Processor to transfer any payments in respect of
the Receivables from or on behalf of Obligors received in the Lock-Box to the
Lock-Box Account on the Business Day on which such payments are received,
pursuant to the Lock-Box Agreement. Within two Business Days of receipt of such
funds into the Lock-Box Account, the Servicer shall cause the Lock-Box Bank to
transfer available funds related to the Receivables from the Lock-Box Account to
the Collection Account, and if such funds are not available funds, as soon
thereafter as they clear (i.e., become available for withdrawal from the
Lock-Box Account). In addition, the Servicer shall remit all payments by or on
behalf of the Obligors received by the Servicer with respect to the Receivables
(other than Purchased Receivables), and all Liquidation Proceeds no later than
the second Business Day following receipt into the Lock-Box Account or the
Collection Account.

             SECTION 5.3. APPLICATION OF COLLECTIONS. All collections for
each Collection Period shall be applied by the Servicer as follows:

             With respect to each Receivable (other than a Purchased
Receivable), payments actually received from or on behalf of the Obligor shall
be applied hereunder, first, to interest and principal in accordance with the
Simple Interest Method to the extent necessary to bring such Receivable current,
second, in connection with the redemption of a defaulted Receivable, to
reimburse the Servicer for reasonable and customary out-of-pocket expenses
incurred by the Servicer in connection with such Receivable, third, to late fees
and fourth, to principal in accordance with the Simple Interest Method.
Notwithstanding anything herein to the contrary, no amount applied as interest
accrued on any Precomputed Receivable for any single Collection Period will
exceed 30 days' interest accrued thereon assuming a 360-day year of twelve
30-day months.

             SECTION 5.4. INTENTIONALLY OMITTED.

             SECTION 5.5. ADDITIONAL DEPOSITS. The following additional deposits
shall be made in immediately available funds on the dates indicated: (i) on the
Business Day immediately preceding each Determination Date, the Servicer or
LBAC, as the case may be, shall deposit or cause to be deposited in the
Collection Account the aggregate Purchase Amount with respect to Purchased
Receivables, (ii) on the Business Day immediately preceding each Determination
Date, the Trust Collateral Agent shall deposit in the Collection Account all
amounts to be paid under Section 11.1, (iii) on the Determination Date
immediately succeeding the date on which the Funding Period ends (or on the
Determination Date on which the Funding Period ends, if the Funding Period ends
on a Determination Date), the Trust Collateral Agent shall transfer the
remaining Pre-Funded Amount on deposit in the Pre-Funding Account to the Note
Account pursuant to Section 5.13(c) and (iv) on or before each Draw Date, the
Trust Collateral Agent shall transfer to the Collection Account any amounts
transferred to the Trust Collateral Agent by the Collateral Agent from the
Spread Account.

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<Page>

              SECTION 5.6. PAYMENTS; POLICY CLAIMS.

         (a)  The Trust Collateral Agent (based solely on the information set
forth in the Servicer's Certificate for the related Payment Date upon which the
Trust Collateral Agent may conclusively rely) shall transfer:

              (i) on each Payment Date, from the Collection Account to the
         Note Account, in immediately available funds, an amount equal to the
         excess of the sum of (a) all funds that were deposited in the
         Collection Account, plus (b) earnings on investments of funds in the
         Collection Account pursuant to Section 5.1(b), for the related
         Collection Period over all funds transferred from the Collection
         Account with respect to such Collection Period pursuant to Section
         5.1(c);

              (ii) on each Payment Date during the Funding Period and on the
         Final Funding Period Payment Date, from the Pre-Funding Account to the
         Note Account, in immediately available funds, earnings on investments
         of funds in the Pre-Funding Account for the related Collection Period
         pursuant to Section 5.1(b);

              (iii) on the Payment Date occurring in January 2000, from the
         Capitalized Interest Account to the Note Account, an amount equal to
         the Additional Interest Deposit; and

              (iv) on each Payment Date occurring in January, February and
         March 2000, from the Capitalized Interest Account to the Note Account,
         an amount equal to the Negative Carry Amount for the related Collection
         Period, if any.

         (b)  Prior to each Payment Date, the Servicer shall on the related
Determination Date calculate the Available Funds, the Class A-1 Payment Amount,
the Class A-1 Principal Payment Amount, the Class A-1 Interest Payment Amount,
the Class A-2 Payment Amount, the Class A-2 Principal Payment Amount, the Class
A-2 Interest Payment Amount, the Class A Payment Amount, the Class A Principal
Payment Amount, the Class A Interest Payment Amount, the Class B Payment Amount,
the Class B Interest Payment Amount, the Class B Principal Payment Amount, the
Monthly Dealer Participation Fee Payment Amount, the amount, if any, required to
be withdrawn from the Collection Account and paid to the Servicer as additional
servicing compensation or contributed to the Spread Account on behalf of the
Servicer, in each case pursuant to Section 5.12 and, based on the Available
Funds and the other amounts available for payment on such Payment Date,
determine the amount payable to the Noteholders.

         (c)  On each Payment Date, the Trust Collateral Agent shall (x)
distribute all amounts delivered by the Note Insurer to the Trust Collateral
Agent for deposit into the Collection Account pursuant to Section 5.9 for
payment in the amounts and priority as directed by the Note Insurer, and (y)
(based on the information contained in the Servicer's Certificate delivered on
the related Determination Date pursuant to Section 4.9 upon which the Trust
Collateral Agent may conclusively rely) subject to subsection (e) hereof, make
the following payments from the Available Funds withdrawn from the Note Account
and from the other sources described below in the following order of priority:

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<Page>

              (i) FIRST, to LBAC, from the Available Funds, the Monthly
         Dealer Participation Fee Payment Amount and all unpaid Monthly Dealer
         Participation Fee Payment Amounts from prior Collection Periods, and
         SECOND, to the Servicer, from the Available Funds (as such Available
         Funds have been reduced by payments pursuant to subclause FIRST of this
         clause (i)), the Servicing Fee and all unpaid Servicing Fees from prior
         Collection Periods and, if the Available Funds are insufficient to pay
         such Servicing Fee and such unpaid Servicing Fees from prior Collection
         Periods, the Servicer will receive such deficiency from the Deficiency
         Claim Amount with respect to such Payment Date, if any, to the extent
         received by the Trust Collateral Agent from the Collateral Agent;

                  (ii) to the Indenture Trustee, the Custodian and the Back-up
         Servicer from the Available Funds (as such Available Funds have been
         reduced by payments pursuant to clause (i) above), the Indenture
         Trustee Fee, the Custodian Fee and the Back-up Servicer Fee,
         respectively, and all unpaid Indenture Trustee Fees, Custodian Fees and
         Back-up Servicer Fees from prior Collection Periods and, if the
         Available Funds are insufficient to pay such amounts, the Indenture
         Trustee, the Custodian and the Back-up Servicer will receive such
         deficiency from the remaining portion of the Deficiency Claim Amount
         with respect to such Payment Date, if any, to the extent received by
         the Trust Collateral Agent from the Collateral Agent, after application
         thereof pursuant to clause (i) above;

                  (iii) to the Class A-1 Noteholders and the Class A-2
         Noteholders, PRO RATA based on the Note Interest due on each such class
         of Notes, from the Available Funds (as such Available Funds have been
         reduced by payments pursuant to clauses (i) and (ii) above), an amount
         equal to the Class A-1 Note Interest and Class A-2 Note Interest,
         respectively, with respect to such Payment Date (plus (without
         duplication) interest on any outstanding Class A-1 or Class A-2
         Interest Carryover Shortfall, if any, to the extent permitted by
         applicable law, at the Class A-1 Note Rate or the Class A-2 Note Rate,
         as applicable, from and including such preceding Payment Date to but
         excluding the current Payment Date (calculated on the basis of a
         360-day year consisting of twelve 30-day months)) and, if the Available
         Funds are insufficient to pay such amounts, the Class A Noteholders
         will receive such deficiency from the following sources in the
         following order of priority: (A) from the remaining portion of the
         Deficiency Claim Amount with respect to such Payment Date, if any, to
         the extent received by the Trust Collateral Agent from the Collateral
         Agent, after application thereof pursuant to clauses (i) and (ii) above
         and (B) from the Policy Claim Amount with respect to such Payment Date,
         if any, received by the Trust Collateral Agent from the Note Insurer;

                  (iv) from the Available Funds (as such Available Funds have
         been reduced by payments pursuant to clauses (i) through (iii) above),
         and, if such Payment Date is the Final Funding Period Payment Date,
         from the Class A Percentage of any Mandatory Special Redemption, FIRST,
         to the Class A-1 Noteholders, until the Class A-1 Note Balance has been
         reduced to zero, an amount equal to the sum of the Class A Principal
         Payment Amount with respect to such Payment Date and any Class A
         Principal Carryover Shortfall as of the close of business on the
         preceding Payment Date, and SECOND, to the Class A-2 Noteholders, after
         the Class A-1 Note Balance has been reduced to zero, until the Class
         A-2 Note Balance has been reduced to zero, an amount equal to the sum
         of the

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<Page>

         remaining Class A Principal Payment Amount with respect to such Payment
         Date and the remaining Class A Principal Carryover Shortfall as of the
         close of business on the preceding Payment Date, and, if the Available
         Funds are insufficient to pay such amounts, the Class A Noteholders
         will receive such deficiency from the following sources in the
         following order of priority: (A) from the remaining portion of the
         Deficiency Claim Amount with respect to such Payment Date, if any,
         after application thereof pursuant to clauses (i) through (iii) above,
         plus (B) the remaining portion of the Policy Claim Amount with respect
         to such Payment Date, if any, after application thereof pursuant to
         clause (iii) above;

                  (V) FIRST, to the Note Insurer, from the Available Funds (as
         such Available Funds have been reduced by payments made pursuant to
         clauses (i) through (iv) above), an amount equal to the Reimbursement
         Obligations and, if the Available Funds are insufficient to pay such
         Reimbursement Obligations, the Note Insurer shall receive such
         deficiency from the remaining portion of the Deficiency Claim Amount
         with respect to such Payment Date, if any, to the extent received by
         the Trust Collateral Agent from the Collateral Agent, after application
         thereof pursuant to clauses (i) through (iv) above, SECOND, to the
         Trust Collateral Agent, the Indenture Trustee, the Back-up Servicer and
         the Custodian, as applicable, from the Available Funds (as such
         Available Funds have been reduced by payments pursuant to clauses (i)
         through (iv) above and subclause FIRST of this clause (v)), all
         reasonable out-of-pocket expenses of the Trust Collateral Agent, the
         Indenture Trustee, the Back-up Servicer and the Custodian (including
         reasonable counsel fees and expenses), including, without limitation,
         costs and expenses required to be paid by the Servicer to the Back-up
         Servicer under Section 9.2(a), to the extent not paid by the Servicer,
         and all unpaid reasonable out-of-pocket expenses of the Trust
         Collateral Agent, the Indenture Trustee, the Back-up Servicer and the
         Custodian (including reasonable counsel fees and expenses) from prior
         Collection Periods; PROVIDED, HOWEVER, that unless an Event of Default
         shall have occurred and be continuing, expenses payable to the Trust
         Collateral Agent, the Indenture Trustee, the Back-up Servicer and the
         Custodian pursuant to this subclause SECOND of clause (v) shall be
         limited to a combined aggregate amount of $50,000 per annum, and THIRD
         to the Back-up Servicer, from the Available Funds (as such Available
         Funds have been reduced by payments pursuant to clauses (i) through
         (iv) above and subclauses FIRST and SECOND of this clause (v)), in the
         event that the Back-up Servicer shall have assumed the obligations of
         Servicer pursuant to Section 9.2(a) and the Servicer fails to pay the
         Back-up Servicer for system conversion expenses as required by said
         section, an aggregate amount not to exceed $100,000 in payment of such
         system conversion expenses;

                  (vi) to the Class B Noteholders, from the Available Funds (as
         such Available Funds have been reduced by payments made pursuant to
         clauses (i) through (v) above), an amount equal to the Class B Note
         Interest with respect to such Payment Date (plus (without duplication)
         interest on any Class B Interest Carryover Shortfall, to the extent
         permitted by applicable law, at the Class B Note Rate from and
         including such preceding Payment Date to but excluding the current
         Payment Date (calculated on the basis of a 360-day year consisting of
         twelve 30-day months)) and, if the Available Funds are insufficient to
         pay such amounts, the Class B Noteholders will receive such deficiency
         from the Class B Reserve Account Draw;

                                       33
<Page>

                  (vii) if such Payment Date is the Final Funding Period Payment
         Date, to the Class B Noteholders, the Class B Percentage of any
         Mandatory Special Redemption; and

                  (viii) to the Collateral Agent for deposit in the Spread
         Account, the remaining Available Funds (as such Available Funds have
         been reduced by payments pursuant to clauses (i) through (vii) above),
         if any.

         (d) In addition, on each Payment Date, after giving effect to the
payments specified in clauses (i) through (viii) above, the Trust Collateral
Agent shall (based on the information contained in the Servicer's Certificate
delivered on the related Determination Date pursuant to Section 4.9 upon which
the Trust Collateral Agent may conclusively rely) pay the following amounts,
from the following sources and in the following order of priority:

                  (i) to the Collateral Agent for deposit in the Class B Reserve
         Account, from amounts on deposit in the Spread Account, the Current
         Spread Account Release Amount with respect to such Payment Date, if
         any;

                  (ii) to the Class B Noteholders, until the Class B Note
         Balance has been reduced to zero, from the Class B Reserve Account
         Release Amount, if any, with respect to such Payment Date, an amount
         equal to the Class B Principal Payment Amount with respect to such
         Payment Date; and

                  (iii) to the Certificateholder, the remaining Class B Reserve
         Account Release Amount (after making the payment required pursuant to
         clause (ii) above), if any.

         (e) Each Noteholder, by its acceptance of its Note, will be deemed to
have consented to the provisions of Sections 5.6(c) and 5.6(d) relating to the
priority of payments, and will be further deemed to have acknowledged that no
property rights in any amount or the proceeds of any such amount shall vest in
such Noteholder until such amounts have been distributed to such Noteholder
pursuant to such provisions; PROVIDED, that the foregoing shall not restrict the
right of any Noteholder, upon compliance with the provisions hereof from seeking
to compel the performance of the provisions hereof by the parties hereto. Each
Noteholder, by its acceptance of its Note, will be deemed to have further agreed
that withdrawals of funds by the Collateral Agent from the Spread Account for
application hereunder, shall be made in accordance with the provisions of the
Spread Account Agreement.

             In furtherance of and not in limitation of the foregoing, each
Class B Noteholder by its acceptance of a Class B Note, specifically
acknowledges that (A) interest pursuant to clause (vi) of Section 5.6(c) will be
subordinated to the prior payment in full of all amounts payable pursuant to
clauses (i) through (v) of Section 5.6(c) (PROVIDED, that such Class B Note
Interest may be paid on each Payment Date using amounts on deposit, if any, in
the Class B Reserve Account) and (B) no amounts shall be applied as principal on
the Class B Notes, unless and until such amounts have been distributed pursuant
to Section 5.6(d)(ii) above for payment to such Class B Noteholder pursuant to
the priorities set forth in Section 5.6(d) above.

             In furtherance of and not in limitation of the foregoing, the
Certificateholder by acceptance of the Certificate, specifically acknowledges
that no amounts shall be received by it,

                                       34
<Page>

nor shall it have any right to receive any amounts, unless and until such
amounts have been distributed pursuant to Section 5.6(d)(iii) above for payment
to the Certificateholder pursuant to the priorities set forth in Section 5.6(d)
above. Each Class B Noteholder, by its acceptance of a Class B Note and the
Certificateholder, by its acceptance of the Certificate, further specifically
acknowledges that it has no right to or interest in any moneys at any time held
pursuant to the Spread Account Agreement prior to the release of such moneys as
aforesaid, such moneys being held in trust for the benefit of the Class A
Noteholders and the Note Insurer as their interests may appear prior to such
release. Notwithstanding the foregoing, in the event that it is ever determined
that any property held in the Spread Account constitute a pledge of collateral,
then the provisions of this Agreement and the Spread Account Agreement shall be
considered to constitute a security agreement and the Transferor and the
Certificateholder hereby grant to the Collateral Agent and to the Trust
Collateral Agent, respectively, a first priority perfected security interest in
such amounts, to be applied as set forth in Section 3.03(b) of the Spread
Account Agreement. In addition, the Certificateholder, by acceptance of its
Certificate, hereby appoints the Transferor as its agent to pledge a first
priority perfected security interest in the Spread Account, and any property
held therein from time to time to the Collateral Agent for the benefit of the
Trust Collateral Agent and the Note Insurer pursuant to the Spread Account
Agreement and agrees to execute and deliver such instruments of conveyance,
assignment, grant, confirmation, etc., as well as any financing statements, in
each case as the Note Insurer shall consider reasonably necessary in order to
perfect the Collateral Agent's Security Interest in the Collateral (as such
terms are defined in the Spread Account Agreement).

         (f)  Subject to Section 11.1 respecting the final payment upon
retirement of each Note, the Servicer shall on each Payment Date instruct the
Trust Collateral Agent to distribute to each Noteholder of record on the
preceding Record Date either (i) by wire transfer, in immediately available
funds to the account of such Holder at a bank or other entity having appropriate
facilities therefor, if such Noteholder is the Clearing Agency or such Holder's
Notes in the aggregate evidence an original Note Balance of at least $1,000,000,
and if such Noteholder shall have provided to the Trust Collateral Agent
appropriate instructions prior to the Record Date for such Payment Date, or (ii)
by check mailed to such Noteholder at the address of such Holder appearing in
the Note Register, such Holder's PRO RATA share (based on the outstanding Note
Balance) of either the Class A or Class B Payment Amount to be paid to such
Class of Notes in accordance with the Servicer's Certificate.

              SECTION 5.7. STATEMENTS TO NOTEHOLDERS; TAX RETURNS.

         (a)  With each payment from the Note Account to the Noteholders made on
a Payment Date, the Servicer shall provide to the Note Insurer, the Transferor,
the Indenture Trustee, each Rating Agency and the Trust Collateral Agent (the
Trust Collateral Agent to forward to each Noteholder of record), the Servicer's
Certificate substantially in the form of Exhibit B-1 hereto setting forth at
least the following information as to the Notes to the extent applicable:

              (i)   the amount of the payment allocable to principal of the
         Class A-1 Notes, the Class A-2 Notes and the Class B Notes,
         respectively;

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<Page>

              (ii)   the amount of the payment allocable to interest on the
         Class A-1 Notes, the Class A-2 Notes and the Class B Notes,
         respectively;

              (iii)  the number of Receivables, the weighted average APR of
         the Receivables, the weighted average maturity of the Receivables, the
         Pool Balance, the Class A-1 Pool Factor, the Class A-2 Pool Factor and
         the Class B Pool Factor as of the close of business on the last day of
         the preceding Collection Period;

              (iv)   the Class A-1 Note Balance, the Class A-2 Note Balance
         and the Class B Note Balance as of the close of business on the last
         day of the preceding Collection Period, after giving effect to payments
         allocated to principal reported under clause (i) above;

              (v)    the amount of the Monthly Dealer Participation Fee Payment
         Amount paid to LBAC, the amount of the Servicing Fee paid to the
         Servicer and the amount of the Back-up Servicer Fee paid to the Back-up
         Servicer with respect to the related Collection Period, the amount of
         any unpaid Servicing Fees and any unpaid Back-up Servicer Fees and the
         change in such amounts from the prior Payment Date;

              (vi)   the amount of the Class A-1 Interest Carryover Shortfall,
         if applicable, the Class A-2 Interest Carryover Shortfall, if
         applicable, and the Class A Principal Carryover Shortfall, if
         applicable, on such Payment Date and the change in such amounts from
         the prior Payment Date;

              (vii)  the amount of the Class B Interest Carryover Shortfall,
         if applicable, on such Payment Date and the change in such amounts from
         the prior Payment Date;

              (viii) the amount paid, if any, to the Class A Noteholders
         under the Note Policy for such Payment Date;

              (ix)   the amount paid to the Note Insurer on such Payment Date;

              (x)    the aggregate amount in each of the Spread Account and the
         Class B Reserve Account;

              (xi)   the number of Receivables and the aggregate outstanding
         principal amount scheduled to be paid thereon, for which the related
         Obligors are delinquent in making Scheduled Receivable Payments between
         30 and 59 days, 60 and 89 days, 90 and 119 days and 120 days or more
         (in each case calculated on the basis of a 360-day year of twelve
         30-day months), and the percentage of the aggregate principal amount
         which such delinquencies represent;

              (xii)  the number and the aggregate Purchase Amount of
         Receivables repurchased by the Originator or purchased by the Servicer
         during the related Collection Period;

              (xiii) the cumulative number and amount of Liquidated
         Receivables, the cumulative amount of any Liquidation Proceeds and
         Recoveries, since the Cutoff Date to

                                       36
<Page>

         the last day of the related Collection Period, the number and amount of
         Liquidated Receivables for the related Collection Period and the amount
         of Recoveries in the related Collection Period;

              (xiv)   the Average Delinquency Ratio, the Cumulative Default
         Rate and the Cumulative Loss Rate (as such terms are defined in the
         Spread Account Agreement) for such Payment Date;

              (xv)    whether any Trigger Event has occurred as of such
         Determination Date;

              (xvi)   whether any Trigger Event that may have occurred as of a
         prior Determination Date is Deemed Cured (as such term is defined in
         the Spread Account Agreement) or otherwise waived as of such
         Determination Date;

              (xvii)  whether an Insurance Agreement Event of Default has
         occurred;

              (xviii) the number and amount of Cram Down Losses, the number
         and dollar amount of repossessions, the aging of repossession inventory
         and the dollar amount of Recoveries;

              (xix)   for Payment Dates during the Funding Period and on the
         Final Funding Period Payment Date, the amount withdrawn from the
         Pre-Funding Account to purchase Subsequent Receivables during the
         related Collection Period and the remaining Pre-Funded Amount on
         deposit in the Pre-Funding Account;

              (xx)    for Payment Dates during the Funding Period and on the
         Final Funding Period Payment Date, the Negative Carry Amount in respect
         of the related Collection Period withdrawn from the Capitalized
         Interest Account and the amount remaining on deposit in the Capitalized
         Interest Account; and

              (xxi)   for the Final Funding Period Payment Date, the amount of
         the Pre-Funded Amount (if any) that has not been used to purchase
         Subsequent Receivables and is being distributed as a payment of
         principal to Noteholders.

              Each amount set forth pursuant to subclauses (i), (ii), (v),
(vi) and (vii) above shall be expressed as a dollar amount per $1,000 of
original principal balance of a Note.

         (b)  No later than January 31 of each calendar year, commencing January
31, 2001, the Servicer shall send to the Indenture Trustee and the Trust
Collateral Agent, and the Trust Collateral Agent shall, provided it has received
the necessary information from the Servicer, promptly thereafter furnish to each
Person who at any time during the preceding calendar year was a Noteholder of
record and received any payment thereon (a) a report (prepared by the Servicer)
as to the aggregate of amounts reported pursuant to subclauses (i), (ii) and (v)
of Section 5.7(a) for such preceding calendar year or applicable portion thereof
during which such person was a Noteholder, and (b) such information as may be
reasonably requested by the Noteholders or required by the Code and regulations
thereunder, to enable such Holders to prepare their Federal and State income tax
returns. The obligation of the Trust Collateral Agent set forth in this
paragraph shall be deemed to have been satisfied to the extent that
substantially

                                       37
<Page>

comparable information shall be provided by the Servicer pursuant to any
requirements of the Code.

         (c) The Servicer, at its own expense, shall cause a firm of nationally
recognized accountants to prepare any tax returns required to be filed by the
Issuer, and the Issuer shall execute and file such returns if requested to do so
by the Servicer. The Trust Collateral Agent, upon request, will furnish the
Servicer with all such information actually known to the Trust Collateral Agent
as may be reasonably requested by the Servicer in connection with the
preparation of all tax returns of the Issuer.

             SECTION 5.8. RELIANCE ON INFORMATION FROM THE SERVICER.
Notwithstanding anything to the contrary contained in this Agreement, all
payments from any of the accounts described in this Article V and any transfer
of amounts between such accounts shall be made by the Trust Collateral Agent
based on the information provided to the Trust Collateral Agent by the Servicer
in writing, whether by way of a Servicer's Certificate or otherwise (upon which
the Trust Collateral Agent may conclusively rely).

             SECTION 5.9. OPTIONAL DEPOSITS BY THE NOTE INSURER. The Note
Insurer shall at any time, and from time to time, with respect to a Payment
Date, have the option to deliver amounts to the Trust Collateral Agent for
deposit into the Collection Account for any of the following purposes: (i) to
provide funds in respect of the payment of fees or expenses of any provider of
services to the Issuer with respect to such Payment Date, (ii) to distribute as
a component of the Principal Payment Amount to the extent that the Note Balance
as of the Determination Date preceding such Payment Date exceeds the Pool
Balance as of such Determination Date or (iii) to include such amount as part of
the Payment Amount for such Payment Date to the extent that without such amount
a draw would be required to be made on the Note Policy.

             SECTION 5.10. SPREAD ACCOUNT. The Transferor agrees,
simultaneously with the execution and delivery of this Agreement, to execute and
deliver the Spread Account Agreement and, pursuant to the terms thereof, to
deposit the Initial Spread Account Deposit in the Spread Account on the Closing
Date. In addition, on each Subsequent Transfer Date, pursuant to the terms of
the Spread Account Agreement, the Transferor shall deposit the related
Subsequent Spread Account Deposit in the Spread Account. Although the Transferor
as Certificateholder, has pledged the Spread Account to the Collateral Agent and
the Note Insurer pursuant to the Spread Account Agreement, the Spread Account
shall not under any circumstances be deemed to be a part of or otherwise
includible in the Issuer or the Trust Assets.

             SECTION 5.11. WITHDRAWALS FROM SPREAD ACCOUNT.

         (a) In the event that the Servicer's Certificate with respect to any
Determination Date shall state that the amount of the Available Funds with
respect to such Determination Date are less than the sum of the amounts payable
on the related Payment Date pursuant to clauses (i) through (iv) and subclause
FIRST of clause (v) of Section 5.6(c) (such deficiency being a "Deficiency Claim
Amount") then on the Deficiency Claim Date immediately preceding such Payment
Date, the Trust Collateral Agent shall deliver to the Collateral Agent, the Note
Insurer, the Fiscal Agent (as such term is defined in the Insurance Agreement),
if any, the Servicer, by

                                       38
<Page>

hand delivery, telex or facsimile transmission, a written notice (a "Deficiency
Notice") specifying the Deficiency Claim Amount for such Payment Date. Such
Deficiency Notice shall direct the Collateral Agent to remit such Deficiency
Claim Amount (to the extent of the funds available to be distributed pursuant to
the Spread Account Agreement) to the Trust Collateral Agent for deposit in the
Collection Account.

             Any Deficiency Notice shall be delivered by 10:00 a.m., New
York City time, on the related Deficiency Claim Date. The amounts distributed by
the Collateral Agent to the Trust Collateral Agent pursuant to a Deficiency
Notice shall be deposited by the Trust Collateral Agent into the Collection
Account pursuant to Section 5.5.

             SECTION 5.12. SIMPLE INTEREST. On each Determination Date, the
Servicer shall determine the amount, if any, of any Simple Interest Shortfall or
Simple Interest Excess for the related Collection Period. If the Servicer
determines that there is a Simple Interest Shortfall for such related Collection
Period, the Servicer shall make an advance (a "Simple Interest Advance") in the
amount of such Simple Interest Shortfall and deposit such Simple Interest
Advance into the Collection Account on or before the Business Day immediately
preceding the next succeeding Payment Date. If, however, the Servicer determines
that there is a Simple Interest Excess for such Collection Period, the Trust
Collateral Agent shall withdraw the amount of such Simple Interest Excess from
the Collection Account on the next Payment Date and pay the amount of such
Simple Interest Excess to the Servicer as additional servicing compensation.
Notwithstanding the immediately preceding sentence, to the extent that the
aggregate amount of Simple Interest Advances made by the Servicer with respect
to all prior Collection Periods does not exceed the aggregate amount of all
Simple Interest Excesses with respect to such prior Collection Periods, such
excess shall be deposited pursuant to Section 5.6(b) into the Spread Account and
shall be treated as a contribution to the Spread Account by the Servicer for the
benefit of the Certificateholder for federal income tax purposes. All references
in this Section 5.12 to the Servicer shall be deemed to refer to the Servicer
only so long as LBAC is acting in such capacity hereunder.

             SECTION 5.13. PRE-FUNDING ACCOUNT.

         (a) Pursuant to Section 5.1(b), the Trust Collateral Agent shall
establish and maintain the Pre-Funding Account as an Eligible Account in the
name of the Trust for the benefit of the Noteholders and the Note Insurer.

         (b) On the Closing Date, the Transferor will deposit in the Pre-Funding
Account an amount equal to the Original Pre-Funded Amount from the proceeds of
the sale of the Notes. On each Subsequent Transfer Date, the Servicer shall
instruct the Trust Collateral Agent in writing to withdraw from the Pre-Funding
Account an amount equal to the Principal Balance of the Subsequent Receivables
(as of the related Subsequent Cutoff Date) conveyed to the Trust on such
Subsequent Transfer Date and pay such amount to or upon the order of the
Transferor upon satisfaction of the conditions set forth in this Agreement and
in the related Transfer Agreement with respect to such transfer.

         (c) If (i) the Pre-Funded Amount has not been reduced to zero by the
close of business on the Final Funding Period Payment Date or (ii) the
Pre-Funded Amount has been

                                       39

<Page>

reduced to $100,000 or less during the Funding Period, in either case after
giving effect to any reductions in the Pre-Funded Amount on the Final Funding
Period Payment Date pursuant to Section 5.13(b), the Servicer shall instruct the
Trust Collateral Agent in writing to withdraw such remaining portion of the
Pre-Funded Amount from the Pre-Funding Account and deposit it in the Note
Account on such Payment Date to be applied as a partial redemption of the Notes,
in addition to the payment of principal and interest that otherwise would be
payable with respect to such Notes on such Payment Date.

             SECTION 5.14. CAPITALIZED INTEREST ACCOUNT.

         (a) Pursuant to Section 5.1(b), the Capitalized Interest Account shall
be an Eligible Account established and maintained by the Trust Collateral Agent
in the name of the Trust for the benefit of the Noteholders and the Note
Insurer. On the Closing Date, the Transferor will deposit in the Capitalized
Interest Account an amount equal to $526,345.45 (such amount, the "Capitalized
Interest Account Deposit").

         (b) On the Payment Date occurring in January 2000, the amounts on
deposit in the Capitalized Interest Account shall be available for deposit to
the Note Account pursuant to Section 5.6(a)(iii) for distribution as provided in
Section 5.6(c). On each Payment Date occurring in January, February and March
2000, the amounts on deposit in the Capitalized Interest Account shall be
available for deposit to the Note Account pursuant to Section 5.6(a)(iv) for
distribution as provided in Section 5.6(c). On the Final Funding Period Payment
Date, any remaining amounts in the Capitalized Interest Account, after giving
effect to the transfer specified in Section 5.6(a)(iv) on such Payment Date,
will be paid directly to the Transferor. Upon any such distribution to the
Transferor, the Noteholders will have no further rights in, or claims to, such
amounts.

         (c) Amounts held in the Capitalized Interest Account shall be invested
by the Trust Collateral Agent in Eligible Investments which shall mature no
later than the Business Day immediately preceding the next Payment Date in
accordance with written instructions from the Transferor and such investments
shall not be sold or disposed of prior to their maturity.

             SECTION 5.15. CLASS B RESERVE ACCOUNT. In order to effectuate
the subordination provided for herein and to enhance the amounts available to
make required payments to the Class B Noteholders, there shall be established
and maintained with the Trust Collateral Agent an Eligible Account entitled,
"Class B Reserve Account--Long Beach Acceptance Auto Receivables Trust 1999-2",
which will include the money and other property deposited and held therein
pursuant to Section 5.6(d)(i) and this Section 5.15.

         (a) On the Closing Date, the Transferor shall deposit the Initial Class
B Reserve Account Deposit into the Class B Reserve Account. On each Subsequent
Transfer Date, the Transferor shall deposit the Class B Reserve Account
Subsequent Deposit into the Class B Reserve Account.

         (b) The amounts on deposit in the Class B Reserve Account shall be
available for payment in accordance with and subject to Section 5.6(d). Upon
termination of this Agreement and the Class B Noteholders having been paid all
amounts due under this Agreement, any

                                       40
<Page>

remaining amounts in the Class B Reserve Account will be distributed to the
Certificateholder. Upon any such payment to the Certificateholder, the Class B
Noteholders will not have any further rights in, or claims to, such amounts.

         (c) Amounts held in the Class B Reserve Account shall be invested in
Eligible Investments which shall mature no later than the Business Day
immediately preceding the next Payment Date in accordance with written
instructions from the Transferor and such investments shall not be sold or
disposed of prior to their maturity. All income and gain recognition on such
investments shall be solely for the benefit of the Certificateholder. In no
event shall the Trust Collateral Agent be liable for any insufficiencies therein
resulting from an investment loss in any Eligible Investment.

         (d) If on any Payment Date (based on the Servicer's Certificate
delivered on the related Determination Date by the Servicer pursuant to Section
4.9, upon which the Trust Collateral Agent may conclusively rely) the Available
Funds are insufficient to pay the full amount described in clause (vi) of
Section 5.6(c), the Trust Collateral Agent shall withdraw the Class B Reserve
Account Draw from the Class B Reserve Account equal to such insufficiency and
deliver the amount so withdrawn to the Trust Collateral Agent for deposit in the
Note Account for application (in the order of priority provided by Section
5.6(c)) in respect of such insufficiency.

             SECTION 5.16. SECURITIES ACCOUNTS. The Trust Collateral Agent
acknowledges that any account held by it hereunder is a "securities account" as
defined in the Uniform Commercial Code as in effect in New York (the "NEW YORK
UCC"), and that it shall be acting as a "securities intermediary" of the
Indenture Trustee with respect to each such account held by it. The Trust
Collateral Agent acknowledges and agrees that (a) each item of property (whether
investment property, financial asset, security, instrument or cash) credited to
the Class B Reserve Account shall be treated as a "financial asset" within the
meaning of Section 8-102(a)(9) of the New York UCC and (b) if at any time the
Trust Collateral Agent shall receive any order from the Indenture Trustee
directing transfer or redemption of any financial asset relating to the Class B
Reserve Account, the Trust Collateral Agent shall comply with such entitlement
order without further consent by LBAC or any other person.

                                   ARTICLE VI
                                 THE NOTE POLICY

             SECTION 6.1. NOTE POLICY. The Originator agrees,
simultaneously with the execution and delivery of this Agreement, to cause the
Note Insurer to issue the Note Policy for the benefit of the Noteholders in
accordance with the terms thereof.

             SECTION 6.2. CLAIMS UNDER NOTE POLICY.

         (a) In the event that the Trust Collateral Agent has delivered a
Deficiency Notice with respect to any Determination Date, the Trust Collateral
Agent shall determine on the related Draw Date whether the sum of (i) the amount
of Available Funds with respect to such Determination Date (as stated in the
Servicer's Certificate with respect to such Determination Date) plus (ii) the
amount of the Deficiency Claim Amount, if any, available to be distributed

                                       41
<Page>

pursuant to the Spread Account Agreement by the Collateral Agent to the Trust
Collateral Agent pursuant to a Deficiency Notice delivered with respect to such
Payment Date (as stated in the certificate delivered on the immediately
preceding Deficiency Claim Date by the Collateral Agent pursuant to Section
3.03(a) of the Spread Account Agreement) would be insufficient, after giving
effect to the payments required by Section 5.6(c)(i) and (ii), to pay the
Scheduled Payments for the related Payment Date, then in such event the Trust
Collateral Agent shall furnish to the Note Insurer no later than 12:00 noon New
York City time on the related Draw Date a completed Notice of Claim in the
amount of the shortfall in amounts so available to pay the Scheduled Payments
with respect to such Payment Date (the amount of any such shortfall being
hereinafter referred to as the "Policy Claim Amount"). Amounts paid by the Note
Insurer under the Note Policy shall be deposited by the Trust Collateral Agent
into the Policy Payments Account and thereafter into the Note Account for
payment to Noteholders on the related Payment Date (or promptly following
payment on a later date as set forth in the Note Policy).

         (b) Any notice delivered by the Trust Collateral Agent to the Note
Insurer pursuant to Section 6.2(a) shall specify the Policy Claim Amount claimed
under the Note Policy and shall constitute a "Notice of Claim" under the Note
Policy. In accordance with the provisions of the Note Policy, the Note Insurer
is required to pay to the Trust Collateral Agent the Policy Claim Amount
properly claimed thereunder by 12:00 noon, New York City time, on the later of
(i) the second Business Day (as defined in the Note Policy) following receipt on
a Business Day (as defined in the Note Policy) of the Notice of Claim, and (ii)
the applicable Payment Date. Any payment made by the Note Insurer under the Note
Policy shall be applied solely to the payment of the Notes, and for no other
purpose.

         (c) The Trust Collateral Agent shall (i) receive as attorney-in-fact of
each Noteholder any Policy Claim Amount from the Note Insurer and (ii) deposit
the same in the Policy Payments Account for disbursement to the Noteholders as
set forth in clauses (iii) and (iv) of Section 5.6(c). Any and all Policy Claim
Amounts disbursed by the Trust Collateral Agent from claims made under the Note
Policy shall not be considered payment by the Issuer or from the Spread Account
with respect to such Notes, and shall not discharge the obligations of the
Issuer with respect thereto. The Note Insurer shall, to the extent it makes any
payment with respect to the 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 Notes by or on behalf of the
Note Insurer, each Noteholder shall be deemed, without further action, to have
directed the Trust Collateral Agent to assign to the Note Insurer all rights to
the payment of interest or principal with respect to the 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 Notes to the extent that it has made payment pursuant to the Note
Policy. Notwithstanding the foregoing, the order of priority of payments to be
made pursuant to Section 5.6(c) shall not be modified by this clause (c). To
evidence such subrogation, the Note Registrar shall note the Note Insurer's
rights as subrogee upon the register of Noteholders upon receipt from the Note
Insurer of proof of payment by the Note Insurer of any Interest Payment Amount
or Principal Payment Amount.

         (d) The Trust Collateral Agent shall be entitled, but not obligated, to
enforce on behalf of the Noteholders the obligations of the Note Insurer under
the Note Policy.

                                       42
<Page>

Notwithstanding any other provision of this Agreement, the Noteholders are not
entitled to institute proceedings directly against the Note Insurer.

             SECTION 6.3. PREFERENCE CLAIMS; DIRECTION OF PROCEEDINGS.

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

         (b) Each Notice of Claim shall provide that the Trust Collateral Agent,
on its behalf and on behalf of the Noteholders, thereby appoints the Note
Insurer as agent and attorney-in-fact for the Trust Collateral Agent and each
Noteholder in any legal proceeding with respect to the Notes. The Trust
Collateral Agent shall promptly notify the Note Insurer of any proceeding or the
institution of any action (of which a Responsible Officer of the Trust
Collateral Agent 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
Notes. Each Holder of Notes, by its purchase of Notes, and the Trust Collateral
Agent 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, as set forth in Section 6.2(c), the Note Insurer shall be subrogated
to, and each Noteholder and the Trust Collateral Agent hereby delegate and
assign, to the fullest extent permitted by law, the rights of the Trust
Collateral Agent and each 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.

             SECTION 6.4. SURRENDER OF NOTE POLICY. The Trust Collateral
Agent shall surrender the Note Policy to the Note Insurer for cancellation upon
its expiration in accordance with the terms thereof.

                                       43
<Page>

                                  ARTICLE VII
                                 THE TRANSFEROR

             SECTION 7.1. REPRESENTATIONS OF THE TRANSFEROR. The Transferor
makes the following representations on which the Note Insurer shall be deemed to
have relied in executing and delivering the Note Policy and on which the Issuer
is deemed to have relied in acquiring the Receivables and on which the Indenture
Trustee, the Collateral Agent, Trust Collateral Agent and Back-up Servicer may
rely. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date in the case of Initial Receivables, and as
of the applicable Subsequent Transfer Date, in the case of Subsequent
Receivables, and shall survive the conveyance of the Receivables to the Issuer
and the subsequent pledge thereof to the Indenture Trustee pursuant to the
Indenture.

         (a) ORGANIZATION AND GOOD STANDING. The Transferor has been duly
organized and is validly existing as a corporation in good standing under the
laws of the State of Delaware, with the corporate power and authority to conduct
its business as such business is presently conducted and to execute, deliver and
perform its obligations under this Agreement and the other Basic Documents to
which it is a party.

         (b) DUE QUALIFICATION. The Transferor is duly qualified to do business
as a foreign corporation in good standing, and has obtained all necessary
licenses and approvals in all jurisdictions required for the performance of its
obligations under this Agreement and the other Basic Documents to which it is a
party other than where the failure to obtain such license or approval or
qualification would not have a material adverse effect on the ability of the
Transferor to perform such obligations or on any Receivable or on the interest
therein of the Issuer, the Noteholders or the Note Insurer.

         (c) POWER AND AUTHORITY. The Transferor has the corporate power and
authority to execute and deliver this Agreement and the other Basic Documents to
which it is a party and to carry out their respective terms; the Transferor has
full corporate power and authority to sell and assign the property sold and
assigned to and deposited with the Issuer and has duly authorized such sale and
assignment to the Issuer by all necessary corporate action; and the execution,
delivery, and performance of this Agreement and the other Basic Documents to
which it is a party have been duly authorized by the Transferor by all necessary
corporate action.

         (d) VALID SALE; BINDING OBLIGATION. This Agreement effects a valid
sale, transfer and assignment of the Initial Receivables and the other property
conveyed to the Issuer pursuant to Section 2.1, and upon execution of the
related Transfer Agreement and satisfaction of the conditions set forth in
Section 2.2(b) hereof and in such Transfer Agreement, this Agreement will effect
a valid sale, transfer and assignment of the related Subsequent Receivables and
the other related property to be conveyed to the Issuer pursuant to Section 2.2
on the related Subsequent Transfer Date, in each case enforceable against
creditors of and purchasers from the Transferor; and this Agreement and the
other Basic Documents to which the Transferor is a party shall constitute legal,
valid and binding obligations of the Transferor enforceable in accordance with
their respective terms except as enforceability may be limited by bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors' rights generally and

                                       44
<Page>

by equitable limitations on the availability of specific remedies, regardless of
whether such enforceability is considered in a proceeding in equity or at law.

         (e) NO VIOLATION. The execution, delivery and performance by the
Transferor of this Agreement and the other Basic Documents to which the
Transferor is a party and the consummation of the transactions contemplated
hereby and thereby and the fulfillment of the terms hereof and thereof do not
conflict with, result in any breach of any of the terms and provisions of, nor
constitute (with or without notice or lapse of time) a default under, the
certificate of incorporation or by-laws of the Transferor, or any material
indenture, agreement, mortgage, deed of trust, or other instrument to which the
Transferor is a party or by which it is bound or any of its properties are
subject; nor result in the creation or imposition of any material lien upon any
of its properties pursuant to the terms of any such indenture, agreement,
mortgage, deed of trust, or other instrument (other than the Basic Documents and
the Credit and Security Agreement); nor violate any law, order, rule, or
regulation applicable to the Transferor of any court or of any Federal or State
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Transferor or its properties.

         (f) NO PROCEEDINGS. There are no proceedings or investigations pending,
or to the Transferor's best knowledge, threatened, before any court, regulatory
body, administrative agency, or other governmental instrumentality having
jurisdiction over the Transferor or its properties: (A) asserting the invalidity
of this Agreement or the other Basic Documents to which the Transferor is a
party or the Notes, (B) seeking to prevent the issuance of the Notes or the
consummation of any of the transactions contemplated by this Agreement or the
other Basic Documents to which the Transferor is a party, (C) seeking any
determination or ruling that might materially and adversely affect the
performance by the Transferor of its obligations under, or the validity or
enforceability of, this Agreement or the other Basic Documents to which the
Transferor is a party or the Notes, (D) relating to the Transferor and which
might adversely affect the Federal or State income, excise, franchise or similar
tax attributes of the Notes or (E) that could have a material adverse effect on
the Receivables.

         (g) NO CONSENTS. No consent, approval, authorization or order of or
declaration or filing with any governmental authority is required to be obtained
by the Transferor for the issuance or sale of the Notes or the consummation of
the other transactions contemplated by this Agreement and the other Basic
Documents to which the Transferor is a party, except such as have been duly made
or obtained or where the failure to obtain such consent, approval,
authorization, order or declaration, or to make such filing, would not have a
material adverse effect on the ability of the Transferor to perform its
obligation under the Basic Documents to which it is a party and would not have a
material adverse effect on any Receivable or the interest therein of the Issuer,
the Noteholders or the Note Insurer.

         (h) CHIEF EXECUTIVE OFFICE. The Transferor hereby represents and
warrants to the Trust Collateral Agent that the Transferor's principal place of
business and chief executive office is, and for the four months preceding the
date of this Agreement, has been, located at One Mack Centre Drive, Paramus, New
Jersey 07652.

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             SECTION 7.2. LIABILITY OF THE TRANSFEROR. The Transferor shall be
liable only to the extent of the obligations specifically undertaken by the
Transferor under this Agreement and the representations made by the Transferor
in this Agreement.

             SECTION 7.3. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF, THE TRANSFEROR. Any Person (a) into which the Transferor may be
merged or consolidated, (b) which may result from any merger or consolidation to
which the Transferor shall be a party or (c) which may succeed to the properties
and assets of the Transferor substantially as a whole, which person in any of
the foregoing cases executes an agreement of assumption to perform every
obligation of the Transferor under this Agreement, shall be the successor to the
Transferor hereunder without the execution or filing of any document or any
further act by any of the parties to this Agreement; PROVIDED, HOWEVER, as a
condition to the consummation of any of the transactions referred to in clauses
(a), (b) or (c) above, (i) immediately after giving effect to such transaction,
(x) no representation or warranty made pursuant to Section 7.1 would have been
breached (for purposes hereof, such representations and warranties shall speak
as of the date of the consummation of such transaction) and (y) no event that,
after notice or lapse of time, or both, would become a Servicer Termination
Event shall have happened and be continuing, (ii) the Transferor shall have
delivered to the Note Insurer, the Indenture Trustee, the Trust Collateral Agent
and the Issuer an Officer's Certificate and an Opinion of Counsel each stating
that such consolidation, merger, or succession and such agreement or assumption
comply with this Section 7.3 and that all conditions precedent, if any, provided
for in this Agreement relating to such transaction have been complied with,
(iii) the Transferor shall have delivered to the Note Insurer, the Indenture
Trustee, the Trust Collateral Agent and the Issuer an Opinion of Counsel either
(A) stating that, in the opinion of such counsel, all financing statements and
continuation statements and amendments thereto have been executed and filed that
are necessary fully to preserve and protect the interest of the Issuer in the
Receivables, and reciting the details of such filings, or (B) stating that, in
the opinion of such counsel, no such action shall be necessary to preserve and
protect such interest, (iv) immediately after giving effect to such transaction,
no Insurance Agreement Event of Default and no event that, after notice or lapse
of time, or both, would become an Insurance Agreement Event of Default shall
have happened and be continuing, (v) the organizational documents of the Person
surviving or resulting from such transaction shall contain provisions similar to
those of the Transferor's certificate of incorporation in respect of the
issuance of debt, independent directors and bankruptcy remoteness and (vi) the
Transferor shall have received confirmation from each Rating Agency that the
then current rating of the Notes will not be downgraded as a result of such
merger, consolidation or succession. A copy of such confirmation shall be
provided to the Trust Collateral Agent. Notwithstanding anything herein to the
contrary, the execution of the foregoing agreement of assumption and compliance
with clause (i), (ii), (iii) or (iv) above shall be conditions to the
consummation of the transactions referred to in clause (a), (b) or (c) above.

             SECTION 7.4. LIMITATION ON LIABILITY OF THE TRANSFEROR AND OTHERS.
The Transferor and any director or officer or employee or agent of the
Transferor may rely in good faith on the advice of counsel or on any document of
any kind, prima facie properly executed and submitted by any Person respecting
any matters arising hereunder. The Transferor shall not be under any obligation
to appear in, prosecute or defend any legal action that shall not be incidental
to its obligations under this Agreement, and that in its opinion may involve it
in any expense or liability.

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             SECTION 7.5. TRANSFEROR MAY OWN NOTES. The Transferor and any
Person controlling, controlled by, or under common control with the Transferor
may in its individual or any other capacity become the owner or pledgee of Notes
with the same rights as it would have if it were not the Transferor or an
affiliate thereof, except as otherwise provided in the definition of
"Noteholder" set forth in Annex A hereto and as specified in Section 1.4. Notes
so owned by or pledged to the Transferor or such controlling or commonly
controlled Person shall have an equal and proportionate benefit under the
provisions of this Agreement, without preference, priority, or distinction as
among all of the Notes except as otherwise provided herein or by the definition
of Noteholder.

                                  ARTICLE VIII
                                  THE SERVICER

             SECTION 8.1. REPRESENTATIONS OF SERVICER. The Servicer makes
the following representations on which the Note Insurer shall be deemed to have
relied in executing and delivering the Note Policy and on which the Issuer is
deemed to have relied in acquiring the Receivables and on which the Indenture
Trustee is deemed to have relied on in accepting the pledge of the Receivables.
The representations speak as of the execution and delivery of this Agreement and
as of the Closing Date, in the case of the Initial Receivables and as of the
applicable Subsequent Transfer Date, in the case of the Subsequent Receivables,
and shall survive the conveyance of the Receivables to the Issuer and the
subsequent pledge thereof to the Indenture Trustee pursuant to the Indenture.

             (i)   ORGANIZATION AND GOOD STANDING. The Servicer is duly
         organized and validly existing as a corporation in good standing under
         the laws of the State of Delaware, with the corporate power and
         authority to own its properties and to conduct its business as such
         properties shall be currently owned and such business is presently
         conducted, and had at all relevant times, and has, the corporate power,
         authority, and legal right to acquire, own, sell and service the
         Receivables and to hold the Receivable Files as custodian.

             (ii)  DUE QUALIFICATION. The Servicer is duly qualified to do
         business as a foreign corporation in good standing, and has obtained
         all necessary licenses and approvals in all jurisdictions in which the
         ownership or lease of property or the conduct of its business
         (including the servicing of the Receivables as required by this
         Agreement and the performance of its other obligations under this
         Agreement and the other Basic Documents to which it is a party) shall
         require such qualifications.

             (iii) POWER AND AUTHORITY. The Servicer has the power and
         authority to execute and deliver this Agreement and the other Basic
         Documents to which it is a party and to carry out their respective
         terms; and the execution, delivery, and performance of this Agreement
         and the other Basic Documents to which it is a party have been duly
         authorized by the Servicer by all necessary corporate action.

             (iv)  BINDING OBLIGATION. This Agreement and the other Basic
         Documents to which it is a party constitute legal, valid and binding
         obligations of the Servicer enforceable in accordance with their
         respective terms except as enforceability may be

                                       47
<Page>

         limited by bankruptcy, insolvency, reorganization or other similar laws
         affecting the enforcement of creditors' rights generally and by
         equitable limitations on the availability of specific remedies,
         regardless of whether such enforceability is considered a proceeding in
         equity or at law.

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

             (vi)    NO PROCEEDINGS. There are no proceedings or
         investigations pending, or to the Servicer's best knowledge,
         threatened, before any court, regulatory body, administrative agency,
         or other governmental instrumentality having jurisdiction over the
         Servicer or its properties: (A) asserting the invalidity of this
         Agreement or the other Basic Documents to which the Servicer is a
         party, the Notes or the Certificate, (B) seeking to prevent the
         issuance of the Notes or the Certificate or the consummation of any of
         the transactions contemplated by this Agreement, the Notes, the
         Certificate, or the other Basic Documents to which the Servicer is a
         party, (C) seeking any determination or ruling that might materially
         and adversely affect the performance by the Servicer of its obligations
         under, or the validity or enforceability of, this Agreement, the Notes,
         the Certificate or the other Basic Documents to which the Servicer is a
         party, (D) relating to the Servicer and which might adversely affect
         the Federal or State income, excise, franchise or similar tax
         attributes of the Notes or the Certificate or (E) that could have a
         material adverse effect on the Receivables.

             (vii)   NO CONSENTS. No consent, approval, authorization or
         order of or declaration or filing with any governmental authority is
         required for the issuance or sale of the Notes or the consummation of
         the other transactions contemplated by this Agreement and the other
         Basic Documents to which the Servicer is a party, except such as have
         been duly made or obtained.

             (viii)  TAXES. The Servicer has filed on a timely basis all tax
         returns required to be filed by it and paid all taxes, to the extent
         that such taxes have become due.

             (ix)    CHIEF EXECUTIVE OFFICE. The Servicer hereby represents
         and warrants to the Trust Collateral Agent that the Servicer's
         principal place of business and chief executive office is, and for the
         four months preceding the date of this Agreement, has been, located at
         One Mack Centre Drive, Paramus, New Jersey 07652.

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<Page>

             SECTION 8.2. INDEMNITIES OF SERVICER.

         (a) The Servicer shall be liable in accordance herewith only to the
extent of the obligations specifically undertaken by the Servicer under this
Agreement and the representations made by the Servicer herein.

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

             (ii)    The Servicer shall indemnify, defend and hold harmless
         the Indenture Trustee, the Trust Collateral Agent, the Owner Trustee,
         the Collateral Agent, the Back-up Servicer, the Custodian, the Issuer,
         the Note Insurer and the Transferor, and their respective officers,
         directors, agents and employees from and against any taxes (other than
         net income, gross receipts, franchise or other similar taxes) that may
         at any time be asserted against the Indenture Trustee, the Trust
         Collateral Agent, the Owner Trustee, the Collateral Agent, the Back-up
         Servicer, the Custodian, the Issuer, the Note Insurer or the
         Transferor, with respect to the transactions contemplated herein,
         including, without limitation, any sales, general corporation, tangible
         personal property, privilege, or license taxes and costs and expenses
         in defending against the same.

             (iii)   The Servicer shall indemnify, defend and hold harmless
         the Indenture Trustee, the Trust Collateral Agent, the Owner Trustee,
         the Collateral Agent, the Custodian, the Back-up Servicer, the
         Transferor, the Note Insurer, the Issuer and the Noteholders, and their
         respective officers, directors, agents and employees from and against
         any and all costs, expenses, losses, claims, damages and liabilities to
         the extent that such cost, expense, loss, claim, damage or liability
         arose out of, or was imposed upon the Indenture Trustee, the Trust
         Collateral Agent, the Owner Trustee, the Collateral Agent, the Back-up
         Servicer, the Custodian, the Transferor, the Note Insurer, the Issuer
         or the Noteholders, and their respective officers, directors, agents
         and employees through the negligence, willful misfeasance or bad faith
         of the Servicer in the performance of its duties under this Agreement
         or any other Basic Document to which it is a party or by reason of
         reckless disregard of its obligations and duties under this Agreement
         or any other Basic Document to which it is a party.

             (iv)    The Servicer shall indemnify, defend and hold harmless
         the Indenture Trustee, the Trust Collateral Agent, the Owner Trustee,
         the Collateral Agent, the Back-up Servicer, the Transferor, the Issuer,
         the Custodian, the Note Insurer and their respective officers,
         directors, agents and employees from and against all costs, expenses,
         losses, claims, damages and liabilities arising out of or incurred in
         connection with the acceptance or performance of the trusts and duties
         contained herein or in any other Basic Document to which it is a party,
         if any, except to the extent that such cost, expense, loss, claim,
         damage or liability: (a) shall be due to the willful misfeasance, bad
         faith, or

                                       49
<Page>

         negligence (except for errors in judgment) of the Indenture Trustee,
         the Trust Collateral Agent, the Owner Trustee, the Collateral Agent,
         the Back-up Servicer, the Transferor, the Issuer, the Custodian or the
         Note Insurer, as applicable; (b) relates to any tax other than the
         taxes with respect to which the Servicer shall be required to
         indemnify the Indenture Trustee, the Trust Collateral Agent, the Owner
         Trustee, the Collateral Agent, the Back-up Servicer, the Transferor,
         the Issuer, the Custodian or the Note Insurer; or (c) shall arise from
         the Trust Collateral Agent's breach of any of its representations or
         warranties set forth in Section 10.12.

             (v)     The Servicer shall indemnify the Owner Trustee and WTC (as
         defined in the Trust Agreement) and its officers, directors,
         successors, assigns, agents and servants (collectively, the
         "Indemnified Parties") from and against, any and all liabilities,
         obligations, losses, damages, taxes, claims, actions and suits, and any
         and all reasonable costs, expenses and disbursements (including
         reasonable legal fees and expenses) of any kind and nature whatsoever
         (collectively, "Expenses") which may at any time be imposed on,
         incurred by, or asserted against the Owner Trustee, WTC or any
         Indemnified Party in any way relating to or arising out of this
         Agreement, the Basic Documents, the Owner Trust Estate (as defined in
         the Trust Agreement), the administration of the Owner Trust Estate or
         the action or inaction of the Owner Trustee under the Trust Agreement,
         except only that the Servicer shall not be liable for or required to
         indemnify the Owner Trustee from and against Expenses arising or
         resulting from any of the matters described in the third sentence of
         Section 6.1 of the Trust Agreement. The indemnities contained in this
         Section shall survive the resignation or termination of the Owner
         Trustee or the termination of the Trust Agreement. In any event of any
         claim, action or proceeding for which indemnity will be sought pursuant
         to this Section, the Owner Trustee's choice of legal counsel shall be
         subject to the approval of the Transferor which approval shall not be
         unreasonably withheld.

             (vi)    Notwithstanding the foregoing, the Servicer shall not be
         obligated to defend, indemnify, and hold harmless any Noteholder for
         any losses, claims, damages or liabilities incurred by any Noteholders
         arising out of claims, complaints, actions and allegations relating to
         Section 406 of ERISA or Section 4975 of the Code as a result of the
         purchase or holding of a Note by such Noteholder with the assets of a
         plan subject to such provisions of ERISA or the Code or the servicing,
         management and operation of the Issuer.

         (b) For purposes of this Section, in the event of the termination of
the rights and obligations of a Servicer (or any successor thereto pursuant to
Section 8.3) as Servicer pursuant to Section 9.1, or a resignation by such
Servicer pursuant to this Agreement, such Servicer shall be deemed to be the
Servicer pending appointment of a successor Servicer pursuant to Section 9.2.
The provisions of this Section 8.2(b) shall in no way affect the survival
pursuant to Section 8.2(c) of the indemnification by the outgoing Servicer
provided by Section 8.2(a).

         (c) Indemnification under this Section 8.2 shall survive the
termination of this Agreement and any resignation or removal of LBAC as Servicer
and shall include reasonable fees and expenses of counsel and expenses of
litigation. If the Servicer shall have made any indemnity payments pursuant to
this Section and the recipient thereafter collects any of such

                                       50
<Page>

amounts from others, the recipient shall promptly repay such amounts to the
Servicer, without interest.

         (d) In no event shall the Servicer be liable under this Agreement to
any Person for the acts or omissions of any successor Servicer, nor shall any
successor Servicer be liable under this Agreement to any Person for any acts or
omissions of a predecessor Servicer.

             SECTION 8.3. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF, SERVICER OR BACK-UP SERVICER.

         (a) The Servicer shall not merge or consolidate with any other Person,
convey, transfer or lease substantially all its assets as an entirety to another
Person, or permit any other Person to become the successor to the Servicer's
business unless, after the merger, consolidation, conveyance, transfer, lease or
succession, the successor or surviving entity shall be an Eligible Servicer and
shall be capable of fulfilling the duties of the Servicer contained in this
Agreement and the other Basic Documents to which the Servicer is a party. Any
Person (a) into which the Servicer may be merged or consolidated, (b) which may
result from any merger or consolidation to which the Servicer shall be a party,
(c) which may succeed to the properties and assets of the Servicer substantially
as a whole or (d) or succeeding to the business of the Servicer shall execute an
agreement of assumption to perform every obligation of the Servicer hereunder,
and whether or not such assumption agreement is executed, shall be the successor
to the Servicer under this Agreement without further act on the part of any of
the parties to this Agreement; PROVIDED, HOWEVER, that nothing contained herein
shall be deemed to release the Servicer from any obligation hereunder; PROVIDED,
FURTHER, HOWEVER, that (i) immediately after giving effect to such transaction,
no representation or warranty made pursuant to Section 8.1 hereof or made by the
Servicer in the Purchase Agreement shall have been breached (for purposes
hereof, such representations and warranties shall speak as of the date of the
consummation of such transaction), no Servicer Termination Event or Insurance
Agreement Event of Default, and no event which, after notice or lapse of time,
or both, would become a Servicer Termination Event or Insurance Agreement Event
of Default shall have occurred and be continuing, (ii) the Servicer shall have
delivered to the Indenture Trustee, the Trust Collateral Agent and the Note
Insurer an Officer's Certificate and an Opinion of Counsel in form and substance
satisfactory to the Indenture Trustee, the Trust Collateral Agent and the Note
Insurer each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section 8.3 and that all conditions
precedent provided for in this Agreement relating to such transaction have been
complied with, (iii) the Servicer shall have delivered to the Indenture Trustee,
the Trust Collateral Agent and the Note Insurer an Opinion of Counsel either (A)
stating that, in the opinion of such counsel, all financing statements and
continuation statements and amendments thereto have been executed and filed that
are necessary fully to preserve and protect the interest of the Issuer in the
Receivables and reciting the details of such filings or (B) stating that, in the
opinion of such counsel, no such action shall be necessary to preserve and
protect such interest and (iv) nothing herein shall be deemed to release the
Servicer from any obligation. The Servicer shall provide notice of any merger,
consolidation or succession pursuant to this Section 8.3(a) to the Indenture
Trustee, the Trust Collateral Agent, the Issuer, the Back-up Servicer, the
Collateral Agent, the Note Insurer, the Noteholders and each Rating Agency.
Notwithstanding anything herein to the contrary, the execution of the foregoing
agreement of assumption and

                                       51
<Page>

compliance with clauses (i), (ii) or (iii) above shall be conditions to the
consummation of the transactions referred to in clause (a), (b) or (c) above.

         (b) Any Person (a) into which the Back-up Servicer may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Back-up Servicer shall be a party, (c) which may succeed to the properties and
assets of the Back-up Servicer substantially as a whole or (d) succeeding to the
business of the Back-up Servicer, shall execute an agreement of assumption to
perform every obligation of the Back-up Servicer hereunder, and whether or not
such assumption agreement is executed, shall be the successor to the Back-up
Servicer under this Agreement without further act on the part of any of the
parties to this Agreement; PROVIDED, HOWEVER, that nothing herein shall be
deemed to release the Back-up Servicer from any obligation.

             SECTION 8.4. LIMITATION ON LIABILITY OF SERVICER AND OTHERS.

         (a) Neither the Servicer nor any of the directors or officers or
employees or agents of the Servicer shall be under any liability to the
Indenture Trustee, the Trust Collateral Agent, the Owner Trustee, the Collateral
Agent, the Back-up Servicer, the Custodian, the Issuer, the Note Insurer, the
Transferor or the Noteholders, except as provided under this Agreement, for any
action taken or for refraining from the taking of any action pursuant to this
Agreement; PROVIDED, HOWEVER, that this provision shall not protect the Servicer
or any such person against any liability that would otherwise be imposed by
reason of a breach of this Agreement or willful misfeasance, bad faith, or
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties under this Agreement. The Servicer and any director or
officer or employee or agent of the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising under this Agreement.

         (b) Except as provided in this Agreement, the Servicer shall not be
under any obligation to appear in, prosecute or defend any legal action that
shall not be incidental to its duties to service the Receivables in accordance
with this Agreement, and that in its opinion may involve it in any expense or
liability.

             SECTION 8.5. SERVICER AND BACK-UP SERVICER NOT TO RESIGN. Subject
to the provisions of Section 8.3, neither the Servicer nor the Back-up Servicer
may resign from the obligations and duties hereby imposed on it as Servicer or
Back-up Servicer, as the case may be, under this Agreement except upon
determination that by reason of a change in legal requirements the performance
of its duties under this Agreement would cause it to be in violation of such
legal requirements in a manner which would result in a material adverse effect
on the Servicer or Back-up Servicer, as the case may be, and the Note Insurer
does not elect to waive the obligations of the Servicer or Back-up Servicer, as
the case may be, to perform the duties which render it legally unable to act or
does not elect to delegate those duties to another Person. Notice of any such
determination permitting the resignation of the Servicer or Back-up Servicer, as
the case may be, shall be communicated to the Transferor, the Indenture Trustee,
the Trust Collateral Agent, the Issuer, the Note Insurer, and each Rating Agency
at the earliest practicable time (and, if such communication is not in writing,
shall be confirmed in writing at the earliest practicable time) and any such
determination by the Servicer or Back-up Servicer, as the case may be, shall

                                        52
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be evidenced by an Opinion of Counsel to such effect delivered to and
satisfactory to the Transferor, the Indenture Trustee, the Trust Collateral
Agent, the Issuer and the Note Insurer concurrently with or promptly after such
notice. No such resignation of the Servicer shall become effective until a
successor servicer shall have assumed the responsibilities and obligations of
LBAC in accordance with Section 9.2 and the Servicing Assumption Agreement, if
applicable. No such resignation of the Back-up Servicer shall become effective
until an entity acceptable to the Note Insurer shall have assumed the
responsibilities and obligations of the Back-up Servicer; PROVIDED, HOWEVER,
that if no such entity shall have assumed such responsibilities and obligations
of the Back-up Servicer within 120 days of the resignation of the Back-up
Servicer, the Back-up Servicer may petition a court of competent jurisdiction
for the appointment of a successor to the Back-up Servicer.

                                   ARTICLE IX

                          SERVICER TERMINATION EVENTS

                  SECTION 9.1. SERVICER TERMINATION EVENTS. If any one of the
following events ("Servicer Termination Events") shall occur and be continuing:

                  (i) Any failure by the Servicer or, for so long as LBAC is the
         Servicer, the Transferor, to deliver to the Trust Collateral Agent for
         payment to Noteholders or deposit in the Spread Account any proceeds or
         payment required to be so delivered under the terms of the Notes, the
         Purchase Agreement, any Transfer Agreement or this Agreement (including
         deposits of Purchase Amounts) that shall continue unremedied for a
         period of two Business Days after written notice is received by the
         Servicer from the Trust Collateral Agent or the Note Insurer or after
         discovery of such failure by the Servicer (but in no event later than
         the five Business Days after the Servicer is required to make such
         delivery or deposit); or

                  (ii) The Servicer's Certificate required by Section 4.9 shall
         not have been delivered to the Trust Collateral Agent and the Note
         Insurer within one Business Day of the date such Servicer's Certificate
         is required to be delivered; or the statement required by Section 4.10
         or the report required by Section 4.11 shall not have been delivered
         within five (5) days after the date such statement or report, as the
         case may be, is required to be delivered; or

                  (iii) Failure on the part of the Servicer to observe its
         covenants and agreements set forth in Section 8.3 or, for so long as
         LBAC is the Servicer, failure on the part of the Transferor to observe
         its covenants and agreements set forth in Section 7.3; or

                  (iv) Failure on the part of LBAC, the Servicer or, for so long
         as LBAC is the Servicer, the Transferor, as the case may be, duly to
         observe or to perform in any material respect any other covenants or
         agreements of LBAC, the Servicer or the Transferor (as the case may be)
         set forth in the Notes, the Purchase Agreement, any Transfer Agreement
         or in this Agreement, which failure shall continue unremedied for a
         period of 30 days after the date on which written notice of such
         failure requiring the same to be remedied, shall have been given (1) to
         LBAC, the Servicer or the Transferor (as the case may be),

                                       53
<Page>

         by the Note Insurer or the Trust Collateral Agent, or (2) to LBAC, the
         Servicer or the Transferor (as the case may be), and to the Trust
         Collateral Agent and the Note Insurer by 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; or

                  (v) The entry of a decree or order for relief by a court or
         regulatory authority having jurisdiction in respect of LBAC or the
         Servicer (or, so long as LBAC is the Servicer, the Transferor, or any
         of the Servicer's other Affiliates, if the Servicer's ability to
         service the Receivables is adversely affected thereby) in an
         involuntary case under the federal bankruptcy laws, as now or hereafter
         in effect, or another present or future, federal or state, bankruptcy,
         insolvency or similar law, or appointing a receiver, liquidator,
         assignee, trustee, custodian, sequestrator or other similar official of
         LBAC, the Servicer (or the Transferor or any other Affiliate of LBAC,
         if applicable) or of any substantial part of their respective
         properties or ordering the winding up or liquidation of the affairs of
         LBAC or the Servicer (or the Transferor or any other Affiliate of LBAC,
         if applicable) or the commencement of an involuntary case under the
         federal or state bankruptcy, insolvency or similar laws, as now or
         hereafter in effect, or another present or future, federal or state
         bankruptcy, insolvency or similar law with respect to LBAC or the
         Servicer (or the Transferor or any other Affiliate of LBAC, if
         applicable) and such case is not dismissed within 60 days; or

                  (vi) The commencement by LBAC or the Servicer (or, so long as
         LBAC is the Servicer, the Transferor or any of the Servicer's other
         Affiliates, if the Servicer's ability to service the Receivables is
         adversely affected thereby) of a voluntary case under the federal
         bankruptcy laws, as now or hereafter in effect, or any other present or
         future, federal or state, bankruptcy, insolvency or similar law, or the
         consent by LBAC or the Servicer (or the Transferor or any other
         Affiliate of LBAC, if applicable) to the appointment of or taking
         possession by a receiver, liquidator, assignee, trustee, custodian,
         sequestrator or other similar official of LBAC or the Servicer (or the
         Transferor or any other Affiliate of LBAC, if applicable) or of any
         substantial part of its property or the making by LBAC or the Servicer
         (or the Transferor or any other Affiliate of LBAC, if applicable) of an
         assignment for the benefit of creditors or the failure by LBAC or the
         Servicer (or the Transferor or any other Affiliate of LBAC, if
         applicable) generally to pay its debts as such debts become due or the
         taking of corporate action by LBAC or the Servicer (or the Transferor
         or any other Affiliate of LBAC, if applicable) in furtherance of any of
         the foregoing; or

                  (vii) Any representation, warranty or statement of LBAC or the
         Servicer or, for so long as LBAC is the Servicer, the Transferor, made
         in this Agreement and, with respect to LBAC and the Transferor, the
         Purchase Agreement, any Transfer Agreement or in each case any
         certificate, report or other writing delivered pursuant hereto shall
         prove to be incorrect as of the time when the same shall have been made
         (excluding, however, any representation or warranty set forth in
         Section 3.2(b) of the Purchase Agreement or Section 4 of any Transfer
         Agreement), and the incorrectness of such representation, warranty or
         statement has a material adverse effect on the Issuer and, within 30
         days after written notice thereof shall have been given (1) to LBAC,
         the

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         Servicer or the Transferor (as the case may be) by the Trust Collateral
         Agent or the Note Insurer or (2) to LBAC, the Servicer or the
         Transferor (as the case may be), and to the Trust Collateral Agent and
         the Note Insurer by 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, the circumstances or condition in respect of which such
         representation, warranty or statement was incorrect shall not have been
         eliminated or otherwise cured; or

                  (viii) The occurrence of an Insurance Agreement Event of
         Default; or

                  (ix)   A claim is made under the Note Policy; or

                  (x)    So long as a Note Insurer Default shall not have
         occurred and be continuing, the Note Insurer shall not have delivered
         a Servicer Extension Notice pursuant to Section 4.13;

then, and in each and every case, so long as a Servicer Termination Event shall
not have been remedied; PROVIDED, (i) no Note Insurer Default shall have
occurred and be continuing, the Note Insurer in its sole and absolute
discretion, or (ii) if a Note Insurer Default shall have occurred and be
continuing, then either the Trust Collateral Agent or the Trust Collateral Agent
acting at the direction of the Majorityholders, by notice then given in writing
to the Servicer (and to the Trust Collateral Agent if given by the Note Insurer
or by the Noteholders) or by the Note Insurer's failure to deliver a Servicer
Extension Notice pursuant to Section 4.13, may terminate all of the rights and
obligations of the Servicer under this Agreement. The Servicer shall be entitled
to its pro rata share of the Servicing Fee for the number of days in the
Collection Period prior to the effective date of its termination. On or after
the receipt by the Servicer of such written notice, all authority and power of
the Servicer under this Agreement, whether with respect to the Notes or the
Receivables or otherwise, shall without further action, pass to and be vested in
(i) the Back-up Servicer or (ii) such successor Servicer as may be appointed
under Section 9.2; PROVIDED, HOWEVER, that the successor Servicer shall have no
liability with respect to any obligation which was required to be performed by
the predecessor Servicer prior to the date the successor Servicer becomes the
Servicer or any claim of a third party (including a Noteholder) based on any
alleged action or inaction of the predecessor Servicer as Servicer; and, without
limitation, the Trust Collateral Agent is hereby authorized and empowered to
execute and deliver, on behalf of the predecessor Servicer, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do or
accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and
endorsement of the Receivables and related documents, or otherwise. The
predecessor Servicer shall cooperate with the successor Servicer and the Trust
Collateral Agent in effecting the termination of the responsibilities and rights
of the predecessor Servicer under this Agreement, including the transfer to the
successor Servicer for administration by it of all cash amounts that shall at
the time be held or should have been held by the predecessor Servicer for
deposit, or shall thereafter be received with respect to a Receivable and the
delivery to the successor Servicer of all files and records concerning the
Receivables and a computer tape in readable form containing all information
necessary to enable the successor Servicer to service the Receivables and the
other property of the Issuer. All reasonable costs and expenses (including
attorneys' fees) incurred in connection with transferring the Receivable Files
to the successor Servicer and amending this

                                       55
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Agreement to reflect such succession as Servicer pursuant to this Section 9.1
shall be paid by the predecessor Servicer upon presentation of reasonable
documentation of such costs and expenses. In addition, any successor Servicer
shall be entitled to payment from the immediate predecessor Servicer for
reasonable transition expenses incurred in connection with acting as successor
Servicer, and in connection with system conversion costs, an aggregate amount
not to exceed for such conversion costs of $100,000, and to the extent not so
paid, such payment shall be made pursuant to Section 5.6(c)(v) hereof. Upon
receipt of notice of the occurrence of a Servicer Termination Event, the Trust
Collateral Agent shall give notice thereof to the Rating Agencies, the Issuer
and the Transferor. The predecessor Servicer shall grant the Transferor, the
Trust Collateral Agent, the Back-up Servicer and the Note Insurer reasonable
access to the predecessor Servicer's premises, computer files, personnel,
records and equipment at the predecessor Servicer's expense. If requested by the
Note Insurer, the Back-up Servicer or successor Servicer shall terminate any
arrangements relating to (i) the Lock-Box Account with the Lock-Box Bank, (ii)
the Lock-Box or (iii) the Lock-Box Agreement, and direct the Obligors to make
all payments under the Receivables directly to the Servicer at the predecessor
Servicer's expense (in which event the successor Servicer shall process such
payments directly, or, through a Lock-Box Account with a Lock-Box Bank at the
direction of the Note Insurer). The Trust Collateral Agent shall send copies of
all notices given pursuant to this Section 9.1 to the Note Insurer so long as no
Note Insurer Default shall have occurred and be continuing, and to the
Noteholders if a Note Insurer Default shall have occurred and be continuing.

             SECTION 9.2. APPOINTMENT OF SUCCESSOR.

         (a) Upon the Servicer's receipt of notice of termination pursuant to
Section 9.1 or the Servicer's resignation in accordance with the terms of this
Agreement, the predecessor Servicer shall continue to perform its functions as
Servicer under this Agreement, in the case of termination, only until the date
specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice, and, in the case of
resignation, until the later of (x) the date 45 days from the delivery to the
Trust Collateral Agent of written notice of such resignation (or written
confirmation of such notice) in accordance with the terms of this Agreement and
(y) the date upon which the predecessor Servicer shall become unable to act as
Servicer, as specified in the notice of resignation and accompanying Opinion of
Counsel. In the event of termination of the Servicer, the Back-up Servicer,
shall assume the obligations of Servicer hereunder on the date specified in such
written notice (the "Assumption Date") pursuant to the Servicing Assumption
Agreement or, in the event that the Note Insurer shall have determined that a
Person other than the Back-up Servicer shall be the successor Servicer in
accordance with Section 9.2(c), on the date of the execution of a written
assumption agreement by such Person to serve as successor Servicer. In the event
of assumption of the duties of Servicer by the Back-up Servicer, the Back-up
Servicer shall be entitled to be paid by the Servicer for the system conversion
costs, an amount not to exceed $100,000. In the event that such amount shall not
have been timely paid by the Servicer, such amount shall be paid under Section
5.6(c)(v) hereof; PROVIDED, HOWEVER, the payment of such amount pursuant to
Section 5.6(c)(v) shall not relieve the Servicer of any obligation or liability
to pay such amount. Notwithstanding the Back-up Servicer's assumption of, and
its agreement to perform and observe, all duties, responsibilities and
obligations of LBAC as Servicer under this Agreement arising on and after the
Assumption Date, the Back-up Servicer shall not be deemed to have assumed or to
become liable for, or otherwise have any liability for, any duties,
responsibilities,

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<Page>

obligations or liabilities of LBAC, the Transferor or any predecessor Servicer
arising on or before the Assumption Date, whether provided for by the terms of
this Agreement, arising by operation of law or otherwise, including, without
limitation, any liability for, any duties, responsibilities, obligations or
liabilities of LBAC, the Transferor or any predecessor Servicer arising on or
before the Assumption Date under Sections 4.7 or 8.2 of this Agreement,
regardless of when the liability, duty, responsibility or obligation of LBAC,
the Transferor or any predecessor Servicer therefor arose, whether provided by
the terms of this Agreement, arising by operation of law or otherwise. In
addition, if the Back-up Servicer shall be legally unable to act as Servicer or
shall have delivered a notice of resignation pursuant to Section 8.5 hereof and
a Note Insurer Default shall have occurred and be continuing, the Back-up
Servicer, the Trust Collateral Agent or the Class A Noteholders evidencing not
less than 66-2/3% of the Class A Note Balance or, after the Class A Notes have
been paid in full, by the Class B Noteholders, evidencing not less than 51% of
the Class B Note Balance may petition a court of competent jurisdiction to
appoint any successor to the Servicer. Pending appointment pursuant to the
preceding sentence, the Back-up Servicer shall act as successor Servicer unless
it is legally unable to do so, in which event the predecessor Servicer shall
continue to act as Servicer until a successor has been appointed and accepted
such appointment. In the event that a successor Servicer has not been appointed
at the time when the predecessor Servicer has ceased to act as Servicer in
accordance with this Section 9.2, then the Note Insurer, in accordance with
Section 9.2(c) shall appoint, or petition a court of competent jurisdiction to
appoint a successor to the Servicer under this Agreement.

         (b) Upon appointment, the successor Servicer shall be the successor in
all respects to the predecessor Servicer and shall be subject to all the
responsibilities, duties, and liabilities arising thereafter relating thereto
placed on the predecessor Servicer, and shall be entitled to the Servicing Fee
and all of the rights granted to the predecessor Servicer, by the terms and
provisions of this Agreement.

         (c) So long as no Note Insurer Default has occurred and is continuing,
the Note Insurer may exercise at any time its right to appoint as Back-up
Servicer or as successor Servicer a Person other than the Person serving as
Back-up Servicer at the time, and shall have no liability to the Trust
Collateral Agent, the Issuer, LBAC, the Transferor, the Person then serving as
Back-up Servicer, any Noteholder or any other person if it does so. Subject to
Section 8.5, no provision of this Agreement shall be construed as relieving the
Back-up Servicer of its obligation to succeed as successor Servicer upon the
termination of the Servicer pursuant to Section 9.1 or resignation of the
Servicer pursuant to Section 8.5. If upon any such resignation or termination,
the Note Insurer appoints a successor Servicer other than the Back-up Servicer,
the Back-up Servicer shall not be relieved of its duties as Back-up Servicer
hereunder.

             SECTION 9.3. NOTIFICATION TO NOTEHOLDERS. Upon any termination
of, or appointment of a successor to, the Servicer pursuant to this Article IX,
the Trust Collateral Agent shall give prompt written notice thereof to
Noteholders at their respective addresses appearing in the Note Register and to
each of the Rating Agencies.

             SECTION 9.4. ACTION UPON CERTAIN FAILURES OF THE SERVICER. In
the event that a Responsible Officer of the Trust Collateral Agent shall have
knowledge of any failure of the Servicer specified in Section 9.1 which would
give rise to a right of termination under such

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Section upon the Servicer's failure to remedy the same after notice, the Trust
Collateral Agent shall give notice thereof to the Transferor, the Servicer and
the Note Insurer. For all purposes of this Agreement, the Trust Collateral Agent
shall not be deemed to have knowledge of any failure of the Servicer as
specified in Section 9.1 unless notified thereof in writing by the Transferor,
the Servicer, the Note Insurer or by a Noteholder. The Trust Collateral Agent
shall be under no duty or obligation to investigate or inquire as to any
potential failure of the Servicer specified in Section 9.1.

                                   ARTICLE X

                  THE TRUST COLLATERAL AGENT AND THE CUSTODIAN

              SECTION 10.1. DUTIES OF THE TRUST COLLATERAL AGENT AND THE
                            CUSTODIAN.

         (a)  The Trust Collateral Agent and the Custodian, 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 Agreement. If an Event of Default shall have
occurred and shall not have been cured or waived, the Trust Collateral Agent and
the Custodian may, and at the direction of the Note Insurer (or, if a Note
Insurer Default shall have occurred and is continuing, the Majorityholders),
shall exercise such of the rights and powers vested in it by this Agreement 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 Trust Collateral Agent and the Custodian, upon receipt of all
resolutions, certificates, statements, opinions, reports, documents, orders or
other instruments furnished to the Trust Collateral Agent and the Custodian that
shall be specifically required to be furnished pursuant to any provision of this
Agreement, shall examine them to determine whether they conform to the
requirements of this Agreement; PROVIDED, HOWEVER, that, neither the Trust
Collateral Agent nor the Custodian shall 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 Agreement, the Trust
Collateral Agent or the Custodian, as applicable, shall notify the Note Insurer
and the Noteholders of such instrument in the event that the Trust Collateral
Agent or the Custodian, after so requesting, does not receive a satisfactorily
corrected instrument.

         (c) The Trust Collateral Agent shall take and maintain custody of the
Schedule of Receivables included as Schedule A to this Agreement and shall
retain copies of all Servicer's Certificates prepared hereunder.

         (d) No provision of this Agreement shall be construed to relieve the
Trust Collateral Agent or the Custodian 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 Trust Collateral Agent and
         the Custodian shall be determined solely by the express provisions of
         this Agreement, neither the Trust Collateral Agent nor the Custodian
         shall

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         be liable except for the performance of such duties and obligations as
         shall be specifically set forth in this Agreement, no implied covenants
         or obligations shall be read into this Agreement against the Trust
         Collateral Agent or the Custodian and, in the absence of bad faith on
         the part of the Trust Collateral Agent or the Custodian, the Trust
         Collateral Agent and the Custodian, as applicable, may conclusively
         rely on the truth of the statements and the correctness of the opinions
         expressed in any certificates or opinions furnished to the Trust
         Collateral Agent or the Custodian and conforming to the requirements of
         this Agreement;

                  (ii)  Neither the Trust Collateral Agent nor the Custodian
         shall be liable for an error of judgment made in good faith by a
         Responsible Officer or officer of the Custodian, respectively, unless
         it shall be proved that the Trust Collateral Agent or the Custodian,
         respectively shall have been negligent in ascertaining the pertinent
         facts;

                  (iii) Neither the Trust Collateral Agent nor the Custodian
         shall be liable with respect to any action taken, suffered, or omitted
         to be taken in good faith in accordance with this Agreement 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 Trust Collateral Agent or the
         Custodian, or exercising any trust or power conferred upon the Trust
         Collateral Agent or the Custodian, as applicable, under this Agreement;

                  (iv)  Neither the Trust Collateral Agent nor the Custodian
         shall be charged with knowledge of any Servicer Termination Event or
         Event of Default, unless a Responsible Officer assigned to the Trust
         Collateral Agent's Corporate Trust Office or an officer of the
         Custodian receives written notice of such Servicer Termination Event or
         Event of Default from the Servicer, the Transferor, 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 a Servicer Termination Event or Event of Default by the
         Trust Collateral Agent); and

                  (v)   Neither the Trust Collateral Agent nor the Custodian
         shall 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 Agreement.

         (e) The Trust Collateral Agent and the Custodian 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 Trust
Collateral Agent or Custodian, as applicable, and none of the provisions
contained in this Agreement shall in any event require the Trust Collateral
Agent or Custodian to perform, or be responsible for the manner of performance
of, any of the obligations of the Servicer under this Agreement except during
such time, if any, as the Trust Collateral Agent, in its capacity as Back-

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up Servicer, shall be the successor to, and be vested with the rights, duties,
powers, and privileges of, the Servicer in accordance with the terms of this
Agreement.

         (f) Except for actions expressly authorized by this Agreement, neither
the Trust Collateral Agent nor the Custodian shall take 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 Trust Collateral Agent or the
Custodian regarding the Obligors and the Receivables, whether upon the exercise
of its rights under this Agreement or otherwise, shall be maintained by the
Trust Collateral Agent or Custodian, as applicable, in confidence and shall not
be disclosed to any other Person; PROVIDED that, nothing herein shall prevent
the Trust Collateral Agent or Custodian 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 Trust Collateral Agent's or Custodian'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
Agreement, 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 Trust
Collateral Agent or Custodian is a party or (d) in order to protect or enforce
the rights of the Noteholders and the Note Insurer under the Issuer established
hereunder.

         (h) Money held in trust by the Trust Collateral Agent or the Custodian
need not be segregated from other funds except to the extent required by law or
the terms of this Agreement or the Indenture.

         (i) Every provision of this Agreement relating to the conduct or
affecting the liability of or affording protection to the Trust Collateral Agent
or the Custodian shall be subject to the provisions of this Section 10.1.

         (j) The Trust Collateral Agent and the Custodian each shall, and each
hereby agrees that it will, perform all of the obligations and duties required
of it under the Sale and Servicing Agreement.

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

         (l) Without limiting the generality of this Section 10.1, the Trust
Collateral Agent and the Custodian each shall have no duty (i) to see to any
recording, filing or depositing of this Agreement or any 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

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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 Trust Collateral Agent or the Servicer pursuant to this
Agreement or the Trust Agreement believed by the Trust Collateral Agent or the
Custodian, as applicable, 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 of 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 The Chase Manhattan 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) Neither the Trust Collateral Agent nor the Custodian shall be
required to give any bond or surety in respect of the powers granted to it under
this Agreement.

             SECTION 10.2. TRUST COLLATERAL AGENT TO ACT FOR THE
NOTEHOLDERS AND NOTE INSURER. Prior to the payment in full of the Notes and the
Reimbursement Obligations and the expiration of the term of the Note Policy, the
Trust Collateral Agent shall act solely for the benefit of the Noteholders and
the Note Insurer, as their interests may appear herein.

             SECTION 10.3. CERTAIN MATTERS AFFECTING THE TRUST COLLATERAL
AGENT AND THE CUSTODIAN. Except as otherwise provided in the second paragraph of
Section 10.1:

             (i)   The Trust Collateral Agent and the Custodian 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 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 Trust Collateral Agent and the Custodian 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 Agreement in good faith
         and in accordance with such written advice or Opinion of Counsel.

              (iii) Neither the Trust Collateral Agent nor the Custodian
         shall be under any obligation to exercise any of the rights or powers
         vested in it by this Agreement, or to institute, conduct, or defend any
         litigation under this Agreement or in relation to this Agreement, at
         the request, order or direction of any of the Noteholders or the Note
         Insurer pursuant to the provisions of this Agreement, unless such
         Noteholders or the Note Insurer shall have offered to the Trust
         Collateral Agent or the Custodian, as applicable,

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<Page>

         reasonable security or indemnity in form and substance reasonably
         satisfactory to the Trust Collateral Agent or the Custodian, as
         applicable, against the costs, expenses and liabilities that may be
         incurred therein or thereby. Nothing contained in this Agreement,
         however, shall relieve the Trust Collateral Agent or the Custodian of
         the obligations, upon the occurrence of a Servicer Termination Event or
         Event of Default (that shall not have been cured or waived), to
         exercise such of the rights and powers vested in it by this Agreement,
         and to 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.

              (iv)  Neither the Trust Collateral Agent nor the Custodian
         shall 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 (other than for the duties of the Custodian pursuant to
         Section 3.4), unless requested in writing to do so by the Note Insurer
         (if no Note Insurer Default shall have occurred or be continuing), the
         Transferor or 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; PROVIDED, HOWEVER, that, if the payment within a reasonable
         time to the Trust Collateral Agent or the Custodian 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 Trust Collateral
         Agent or the Custodian, not reasonably assured to the Trust Collateral
         Agent or the Custodian by the security afforded to it by the terms of
         this Agreement, the Trust Collateral Agent or the Custodian, as
         applicable, 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 Trust
         Collateral Agent or the Custodian, shall be reimbursed by the Person
         making such request upon demand.

                  (v) The Trust Collateral Agent and the Custodian may execute
         any of the trusts or powers hereunder or perform any duties under this
         Agreement either directly or by or through agents or attorneys. Neither
         the Trust Collateral Agent nor the Custodian shall be responsible for
         any misconduct or negligence of any such agent appointed with due care
         by it hereunder, or of any agent of the Servicer in its capacity as
         Servicer or custodian or otherwise.

                  (vi) Except as may be expressly required by Sections 3.4,
         subsequent to the sale of the Receivables by the Transferor to the
         Issuer, neither the Trust Collateral Agent nor the Custodian shall have
         any duty of independent inquiry, and the Trust Collateral Agent and the
         Custodian may rely upon the representations and warranties and
         covenants of the Transferor and the Servicer contained in this
         Agreement with respect to the Receivables and the Receivable Files.

                  (vii) The Trust Collateral Agent and the Custodian may rely,
         as to factual matters relating to the Transferor or the Servicer, on an
         Officer's Certificate of the Transferor or Servicer, respectively.

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<Page>

                  (viii) Neither the Trust Collateral Agent nor the Custodian
         shall be required to take any action or refrain from taking any action
         under this Agreement, or any related documents referred to herein, nor
         shall any provision of this Agreement, or any such related document be
         deemed to impose a duty on the Trust Collateral Agent or the Custodian
         to take action, if the Trust Collateral Agent or the Custodian shall
         have been advised by counsel that such action is contrary to (i) the
         terms of this Agreement, (ii) any such related document or (iii) law.

                  SECTION 10.4. TRUST COLLATERAL AGENT, BACK-UP SERVICER AND
CUSTODIAN NOT LIABLE FOR NOTES OR RECEIVABLES. The recitals contained herein
shall be taken as the statements of the Issuer, the Transferor or the Servicer,
as the case may be, and neither the Trust Collateral Agent, the Back-up Servicer
nor the Custodian assumes any responsibility for the correctness thereof.
Neither the Trust Collateral Agent, the Back-up Servicer nor the Custodian shall
make any representations as to the validity or sufficiency of this Agreement or
of the Notes, or of any Receivable or related document. Neither the Trust
Collateral Agent, the Back-up Servicer nor the Custodian shall at any time have
any responsibility or liability for or with respect to the legality, validity
and enforceability of any security interest in any Financed Vehicle or any
Receivable, or the perfection and priority of such a security interest or the
maintenance of any such perfection and priority, or for or with respect to the
efficacy of the Issuer or its ability to generate the payments to be distributed
to Noteholders under this Agreement, including, without limitation: the
existence, condition, location, and ownership of any Financed Vehicle; the
existence and enforceability of any physical damage insurance thereon; except as
required by Section 3.4, the existence, contents and completeness of any
Receivable or any Receivable Files or any computer or other record thereof; the
validity of the assignment of any Receivable to the Issuer or of any intervening
assignment; except as required by Section 3.4, the performance or enforcement of
any Receivable; the compliance by the Transferor or the Servicer with any
warranty or representation made under this Agreement or in any related document
and the accuracy of any such warranty or representation prior to the Trust
Collateral Agent's, the Back-up Servicer's or Custodian's receipt of notice or
other actual knowledge by a Responsible Officer of any noncompliance therewith
or any breach thereof; any investment of monies by or at the direction of the
Servicer or the Note Insurer or any loss resulting therefrom (it being
understood that the Trust Collateral Agent, the Back-up Servicer and the
Custodian shall each remain responsible for any Trust Assets that it may hold);
the acts or omissions of the Issuer, the Transferor, the Servicer, or any
Obligor; any action of the Servicer taken in the name of the Trust Collateral
Agent or the Custodian; or any action by the Trust Collateral Agent or the
Custodian taken at the instruction of the Servicer; PROVIDED, HOWEVER, that the
foregoing shall not relieve either the Trust Collateral Agent, the Back-up
Servicer or the Custodian of its obligation to perform its duties under this
Agreement. Except with respect to a claim based on the failure of the Trust
Collateral Agent, the Back-up Servicer or the Custodian to perform its duties
under this Agreement or based on the Trust Collateral Agent's, the Back-up
Servicer's or the Custodian's negligence or willful misconduct, no recourse
shall be had for any claim based on any provision of this Agreement, the Notes,
or any Receivable or assignment thereof against the Trust Collateral Agent, the
Back-up Servicer or Custodian in their respective individual capacities, neither
the Trust Collateral Agent, the Back-up Servicer nor the Custodian shall 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 Agreement. Neither the Trust

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Collateral Agent, the Back-up Servicer nor the Custodian shall 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. The Issuer hereby certifies to the Trust
Collateral Agent, the Back-up Servicer and the Custodian that the Rating
Agencies rating the Notes are Standard & Poor's and Moody's and that their
addresses are as set forth in Section 13.5. The Trust Collateral Agent, the
Back-up Servicer and the Custodian may rely on the accuracy of such
certification until it receives from the Issuer an Officer's Certificate
superseding such certification. All references above to the Back-up Servicer
shall be deemed to refer to the Back-up Servicer only so long as it is acting in
such capacity hereunder.

                  SECTION 10.5. TRUST COLLATERAL AGENT, BACK-UP SERVICER AND
CUSTODIAN MAY OWN NOTES. The Trust Collateral Agent, the Back-up Servicer and
the Custodian in their respective individual or any other capacities may become
the owner or pledgee of Notes and may deal with the Transferor and the Servicer
in banking transactions with the same rights as it would have if it were not
Trust Collateral Agent, Back-up Servicer or Custodian, as applicable.

                  SECTION 10.6. INDEMNITY OF TRUST COLLATERAL AGENT, BACK-UP
SERVICER AND CUSTODIAN. The Servicer shall indemnify the Trust Collateral Agent,
the Back-up Servicer, the Custodian and each officer, director and employee of
the Trust Collateral Agent, the Back-up Servicer and the Custodian for, and hold
each such Person harmless against, any loss, liability, or expense incurred
without willful misfeasance, negligence, or bad faith on its part, arising out
of or in connection with the acceptance or administration of this Agreement, the
performance of duties as Custodian of the Legal Files including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties under this Agreement.
The provisions of this Section 10.6 shall survive the termination of this
Agreement or any resignation or removal of LBAC as Servicer.

                  SECTION 10.7. ELIGIBILITY REQUIREMENTS FOR TRUST COLLATERAL
AGENT AND THE CUSTODIAN. The Trust Collateral Agent and the Custodian under this
Agreement shall at all times be organized and doing business under the laws of
the United States of America, with respect to the Trust Collateral Agent or the
laws of the State of New York, with respect to the Custodian; 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 10.7, 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
Trust Collateral Agent or the Custodian shall cease to be eligible in accordance
with the provisions of this Section 10.7, the Trust Collateral Agent or the
Custodian shall resign immediately in the manner and with the effect specified
in Section 10.8.

                  SECTION 10.8. RESIGNATION OR REMOVAL OF TRUST COLLATERAL AGENT
OR CUSTODIAN.

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         (a) The Trust Collateral Agent and the Custodian may at any time resign
and be discharged from the trusts hereby created by giving 30 days' prior
written notice thereof to the Servicer. To the extent that the Trust Collateral
Agent and the Custodian resign hereunder, the Indenture Trustee shall also
resign under the Indenture and the Collateral Agent shall resign under the
Spread Account Agreement. Upon receiving such notice of resignation, with the
prior written consent of the Note Insurer (or, if a Note Insurer Default shall
have occurred or is continuing, 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),
the Servicer shall promptly appoint a successor Trust Collateral Agent or
Custodian, as applicable, by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Trust Collateral Agent or
Custodian, as applicable, and one copy to the successor Trust Collateral Agent
or successor Custodian. If no successor Trust Collateral Agent or successor
Custodian shall have been so appointed and have accepted appointment within 30
days after the giving of such notice of resignation, the Note Insurer may
appoint a successor Trust Collateral Agent or Custodian, as applicable, by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Trust Collateral Agent or Custodian and one copy to
the successor Trust Collateral Agent or Custodian. If no successor Trust
Collateral Agent or Custodian shall have been so appointed and have accepted
appointment within 60 days after the giving of such notice of resignation, the
resigning Trust Collateral Agent or Custodian may petition any court of
competent jurisdiction for the appointment of a successor Trust Collateral Agent
or Custodian, as applicable. The Trust Collateral Agent or the Custodian may be
removed at any time by written demand of the Note Insurer delivered to the Trust
Collateral Agent or the Custodian, as applicable, and the Servicer.

         (b) If at any time (i) the Trust Collateral Agent or the Custodian
shall cease to be eligible in accordance with the provisions of Section 10.7 and
shall fail to resign after written request therefor by the Servicer, (ii) the
Trust Collateral Agent or the Custodian, as applicable, shall be legally unable
to act, (iii) the Trust Collateral Agent and the Indenture Trustee shall be the
same Person and the Indenture Trustee shall have resigned or been removed
pursuant to Section 6.8 of the Indenture, or (iv) the Trust Collateral Agent or
the Custodian shall be adjudged bankrupt or insolvent, or a receiver,
conservator or liquidator of the Trust Collateral Agent, the Custodian or of any
of their respective property shall be appointed, or any public officer shall
take charge or control of the Trust Collateral Agent or Custodian or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Note Insurer shall (so long as no Note Insurer Default
shall have occurred and be continuing), or the Servicer may (if a Note Insurer
Default shall have occurred and be continuing) remove the Trust Collateral Agent
or Custodian. If the Note Insurer or the Servicer shall remove the Trust
Collateral Agent or Custodian under the authority of the immediately preceding
sentence, the Servicer or the Note Insurer, as the case may be, shall promptly
appoint a successor Trust Collateral Agent or Custodian, as applicable, by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the Trust Collateral Agent or Custodian so removed and one copy to
the successor Trust Collateral Agent or successor Custodian, and pay all fees
and expenses owed to the outgoing Trustee, provided that any successor Trust
Collateral Agent or any successor Custodian appointed by the Servicer shall be
acceptable to the Note Insurer.

         (c) Any resignation or removal of the Trust Collateral Agent or the
Custodian and appointment of a successor Trust Collateral Agent or Custodian
pursuant to any of the provisions

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of this Section 10.8 shall not become effective until acceptance of appointment
by the successor Trust Collateral Agent or Custodian, as applicable, pursuant to
Section 10.9 and payment of all fees and expenses owed to the outgoing Trustee.
The Servicer shall provide notice of such resignation or removal of the Trust
Collateral Agent or Custodian to each of the Rating Agencies and the Transferor.

         (d) If the Trust Collateral Agent and the Back-up Servicer shall be the
same Person and the rights and obligations of the Back-up Servicer shall have
been terminated pursuant to this Section 10.8, then the Note Insurer (or, if a
Note Insurer Default shall have occurred and be continuing, the Majorityholders)
shall have the option, by 60 days' prior notice in writing to the Servicer and
the Trust Collateral Agent, to remove the Trust Collateral Agent, and the Note
Insurer shall not have any liability to the Trust Collateral Agent, LBAC, the
Transferor, the Servicer, the Issuer or any Noteholder in connection with such
removal.

         (e) At any time following the Closing Date the Servicer may assume the
duties of Custodian under this Agreement; PROVIDED, that (i) the Note Insurer
provides its prior written consent to the Trust Collateral Agent (which consent
shall be granted or withheld by the Note Insurer in its sole discretion) and
(ii) the Rating Agency Condition has been satisfied.

             SECTION 10.9. SUCCESSOR TRUST COLLATERAL AGENT OR CUSTODIAN.
Any successor Trust Collateral Agent or Custodian appointed pursuant to Section
10.8 shall execute, acknowledge and deliver to the Transferor, the Servicer, the
Note Insurer and to its predecessor Trust Collateral Agent or predecessor
Custodian, as applicable, an instrument accepting such appointment under this
Agreement, and thereupon the resignation or removal of the predecessor Trust
Collateral Agent or predecessor Custodian shall become effective and such
successor Trust Collateral Agent or successor Custodian, without any further
act, deed or conveyance, shall become fully vested with all the rights, powers,
duties, and obligations of its predecessor under this Agreement, with like
effect as if originally named as Trust Collateral Agent or Custodian. The
predecessor Trust Collateral Agent or predecessor Custodian shall upon payment
of its fees and expenses deliver to the successor Trust Collateral Agent or
successor Custodian all documents and statements and monies held by it under
this Agreement; and the Servicer, the Note Insurer and the predecessor Trust
Collateral Agent or predecessor Custodian shall execute and deliver such
instruments and do such other things as may reasonably be required for fully and
certainly vesting and confirming in the successor Trust Collateral Agent or
successor Custodian all such rights, powers, duties, and obligations.

             No successor Trust Collateral Agent or successor Custodian
shall accept appointment as provided in this Section 10.9 unless at the time of
such acceptance such successor Trust Collateral Agent or successor Custodian
shall be eligible pursuant to Section 10.7.

             Upon acceptance of appointment by a successor Trust Collateral
Agent or successor Custodian pursuant to this Section 10.9, the Servicer shall
mail notice of the successor of such Trust Collateral Agent or Custodian under
this Agreement to all Holders of Notes at their addresses as shown in the Note
Register, the Transferor, and to the Rating Agencies. If the Servicer shall fail
to mail such notice within ten (10) days after acceptance of appointment by the

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successor Trust Collateral Agent, the successor Trust Collateral Agent or
successor Custodian shall cause such notice to be mailed at the expense of the
Servicer.

             SECTION 10.10. MERGER OR CONSOLIDATION OF TRUST COLLATERAL
AGENT OR CUSTODIAN. Any corporation into which the Trust Collateral Agent or the
Custodian may be merged or converted or with which it may be consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Trust Collateral Agent or the Custodian shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trust Collateral Agent or the Custodian, shall be the successor of the Trust
Collateral Agent or Custodian, as applicable, hereunder, provided such
corporation shall be eligible pursuant to Section 10.7, without the execution or
filing of any instrument or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding.

             SECTION 10.11. CO-TRUSTEE; SEPARATE TRUSTEE.

         (a) Notwithstanding any other provisions of this Agreement, at any
time, for the purpose of meeting any legal requirements of any jurisdiction in
which any part of the Issuer or any Financed Vehicle may at the time be located,
the Servicer, the Note Insurer (provided a Note Insurer Default shall not have
occurred and be continuing) and the Trust Collateral Agent acting jointly shall
have the power and shall execute and deliver all instruments to appoint one or
more persons approved by the Trust Collateral Agent to act as co-trustee,
jointly with the Trust Collateral Agent, or separate trustee or separate
trustees, of all or any part of the Issuer, and to vest in such Person, in such
capacity and for the benefit of the Noteholders, such title to the Issuer, or
any part thereof, and, subject to the other provisions of this Section 10.11,
such powers, duties, obligations, rights, and trusts as the Servicer, the Note
Insurer and the Trust Collateral Agent may consider necessary or desirable. If
the Servicer and the Note Insurer shall not have joined in such appointment
within fifteen (15) days after the receipt by it of a request so to do, or in
the case an Event of Default shall have occurred and be continuing, the Trust
Collateral Agent alone shall have the power to make such appointment. No
co-trustee or separate trustee under this Agreement shall be required to meet
the terms of eligibility as a successor Trust Collateral Agent pursuant to
Section 10.7, except that the co-trustee or its parent shall comply with the
rating requirements set forth therein, and no notice of a successor Trust
Collateral Agent pursuant to Section 10.9 and no notice to Noteholders of the
appointment of any co-trustee or separate trustee shall be required pursuant to
Section 10.9.

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

             (i) All rights, powers, duties, and obligations conferred or
         imposed upon the Trust Collateral Agent shall be conferred upon and
         exercised or performed by the Trust Collateral Agent 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
         Trust Collateral Agent 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 (whether as Trust Collateral Agent under this
         Agreement or, in its capacity as Back-up Servicer, as successor to the
         Servicer under this Agreement), the Trust Collateral Agent shall be
         incompetent or unqualified to perform such act or acts, in which event
         such rights,

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         powers, duties, and obligations (including the holding of title to the
         Issuer 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 Trust Collateral Agent;

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

                  (iii) Provided no Note Insurer Default shall have occurred and
         be continuing, the Note Insurer may, and, in the event a Note Insurer
         Default shall have occurred and be continuing, then, the Servicer and
         the Trust Collateral Agent acting jointly may, at any time accept the
         resignation of or remove any separate trustee or co-trustee.

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

         (d) Any separate trustee or co-trustee may at any time appoint the
Trust Collateral Agent, 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 Agreement on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Trust Collateral Agent, to the extent permitted by law, without
the appointment of a new or successor Trust Collateral Agent.

             SECTION 10.12. REPRESENTATIONS AND WARRANTIES OF TRUST
COLLATERAL AGENT AND THE CUSTODIAN. The Custodian and the Trust Collateral Agent
shall make the following representations and warranties with respect to itself
on which the Transferor, the Servicer, the Originator, the Issuer, the Note
Insurer and Noteholders shall rely:

             (i)   The Custodian and the Trust Collateral Agent are a New
         York banking corporation, duly organized, validly existing, and in good
         standing under the laws of the State of New York and have the corporate
         powewr, authority and legal right to hold the Legal Files.

             (ii)  The Custodian and the Trust Collateral Agent have full
         corporate power authority and legal right to execute, deliver, and
         perform this Agreement and shall have taken all necessary action to
         authorize the execution, delivery and performance by it of this
         Agreement.

             (iii) This Agreement has been duly executed and delivered by
         the Trust Collateral Agent and the Custodian and constitutes a legal,
         valid and binding obligation

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         of the Trust Collateral Agent and the Custodian, enforceable in
         accordance with its terms, subject to (x) applicable bankruptcy,
         insolvency, reorganization, moratorium and other similar laws affection
         creditor's rights generally and (y) general principals of equity.

             SECTION 10.13. RIGHTS OF NOTE INSURER TO DIRECT TRUST
COLLATERAL AGENT. Subject to clause (iii) of Section 10.3, unless a Note Insurer
Default shall have occurred and be continuing, the Note Insurer, after giving
written notice to the Trust Collateral Agent, shall have the right to direct the
time, method and place at or by which the Trust Collateral Agent conducts any
proceeding for any remedy available to the Trust Collateral Agent, or exercises
any such trust or power conferred upon the Trust Collateral Agent; PROVIDED,
HOWEVER, that subject to Section 10.1, the Trust Collateral Agent shall have the
right to decline to follow any such direction of the Note Insurer if the Trust
Collateral Agent, being advised by counsel, determines that the action so
directed may not lawfully be taken, or if the Trust Collateral Agent in good
faith shall, by a Responsible Officer of the Trust Collateral Agent, determine
that the proceedings so directed would be in violation of any Basic Document or
involve it in personal liability against which its has not been provided
indemnity in form and substance satisfactory to it or be unduly prejudicial to
the rights of Noteholders; PROVIDED, that nothing in this Agreement shall impair
the right of the Trust Collateral Agent to take any action deemed proper by the
Trust Collateral Agent and which is not inconsistent with such direction of the
Note Insurer.

                                   ARTICLE XI
                                   TERMINATION

             SECTION 11.1. TERMINATION.

         (a) The respective obligations and responsibilities of LBAC, the
Transferor, the Issuer, the Servicer, the Custodian and the Trust Collateral
Agent created hereby shall terminate upon the payment to Noteholders and the
Certificateholder of all amounts required to be paid to them pursuant to this
Agreement, the Indenture and the Trust Agreement, satisfaction of all
Reimbursement Obligations, and the expiration of any preference period related
thereto and the disposition of all property held as part of the Issuer;
PROVIDED, HOWEVER, in any case there shall be delivered to the Trust Collateral
Agent and the Note Insurer an Opinion of Counsel that all applicable preference
periods under federal, state and local bankruptcy, insolvency and similar laws
have expired with respect to the payments pursuant to this Section 11.1. The
Servicer shall promptly notify the Trust Collateral Agent, the Transferor, the
Issuer, each Rating Agency and the Note Insurer of any prospective termination
pursuant to this Section 10.1.

         (b) Upon any sale of the assets of the Issuer pursuant to Section 8.1
of the Trust Agreement, the Servicer shall instruct the Trust Collateral Agent
to deposit the proceeds from such sale after all payments and reserves therefrom
(including the expenses of such sale) have been made (the "Insolvency Proceeds")
in the Collection Account.

         (c) Notice of any termination of the Issuer shall be given by the
Servicer to the Owner Trustee, the Trust Collateral Agent, the Collateral Agent,
the Back-up Servicer, the Indenture Trustee, the Note Insurer and the Rating
Agencies as soon as practicable after the Servicer has received notice thereof.

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         (d) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the
Certificateholders will succeed to the rights of the Noteholders hereunder.

                                  ARTICLE XII
                      ADMINISTRATIVE DUTIES OF THE SERVICER

              SECTION 12.1. ADMINISTRATIVE DUTIES.

         (a)  DUTIES WITH RESPECT TO THE INDENTURE. The Servicer shall take all
necessary action that is the duty of the Issuer to take pursuant to the
Indenture, pursuant to Sections 2.9 (with respect to the notice provisions
contained therein), 3.4, 3.5, 3.6, 3.7, 3.9, 3.10, 3.17, 8.3, 9.1, 9.2, 9.3,
11.1 and 11.13 of the Indenture (in each case, excluding any duty to make
payments to the Noteholders and the Note Insurer). In addition, the Servicer
shall consult with the Owner Trustee as the Servicer deems appropriate regarding
the duties of the Issuer under the Indenture. The Servicer shall monitor the
performance of the Issuer and shall advise the Owner Trustee when action is
necessary to comply with the Issuer's duties under the Indenture. The Servicer
shall prepare for execution by the Issuer or shall cause the preparation by
other appropriate Persons of all such documents, reports, filings, instruments,
certificates and opinions as it shall be the duty of the Issuer to prepare, file
or deliver pursuant to the Indenture.

         (b)  DUTIES WITH RESPECT TO THE ISSUER.

              (i)   In addition to the duties of the Servicer set forth in
         this Agreement or any of the Basic Documents, the Servicer shall
         perform such calculations and shall prepare for execution by the Issuer
         or the Owner Trustee or shall cause the preparation by other
         appropriate Persons of all such documents, reports, filings,
         instruments, certificates and opinions as it shall be the duty of the
         Issuer or the Owner Trustee to prepare, file or deliver pursuant to
         this Agreement or any of the Basic Documents or under state and federal
         tax and securities laws, and at the request of the Owner Trustee shall
         take all appropriate action that it is the duty of the Issuer to take
         pursuant to this Agreement. In accordance with the directions of the
         Issuer or the Owner Trustee, the Servicer shall administer, perform or
         supervise the performance of such other activities in connection with
         the Trust Assets (including the Basic Documents) as are not covered by
         any of the foregoing provisions and as are expressly requested by the
         Issuer or the Owner Trustee and are reasonably within the capability of
         the Servicer.

              (ii)  In carrying out the foregoing duties or any of its other
         obligations under this Agreement, the Servicer may enter into
         transactions with or otherwise deal with any of its Affiliates;
         PROVIDED, HOWEVER, that the terms of any such transactions or dealings
         shall be in accordance with any directions received from the Issuer and
         shall be, in the Servicer's opinion, no less favorable to the Issuer in
         any material respect.

         (c)  NON-MINISTERIAL MATTERS. With respect to matters that in the
reasonable judgment of the Servicer are non-ministerial, the Servicer shall not
take any action pursuant to this Article XII unless within a reasonable time
before the taking of such action, the Servicer shall have notified the Owner
Trustee , the Note Insurer and the Trust Collateral Agent of the proposed

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action and the Owner Trustee and, with respect to items (i), (ii), (iii) and
(iv) below, the Trust Collateral Agent shall not have withheld consent or
provided an alternative direction. For the purpose of the preceding sentence,
"non-ministerial matters" shall include:

              (i)   the amendment of or any supplement to the Indenture;

              (ii)  the initiation of any claim or lawsuit by the Issuer and
         the compromise of any action, claim or lawsuit brought by or against
         the Issuer (other than in connection with the collection of the
         Receivables);

              (iii) the amendment, change or modification of this Agreement
         or any of the Basic Documents;

              (iv)  the appointment of successor Note Registrars, successor
         Note Paying Agents and successor Indenture Trustees pursuant to the
         Indenture or the appointment of Successor Servicers or the consent to
         the assignment by the Note Registrar, Paying Agent or Trustee of its
         obligations under the Indenture; and

              (v)   the removal of the Trust Collateral Agent or the Indenture
         Trustee.

         (d) EXCEPTIONS. Notwithstanding anything to the contrary in this
Agreement, except as expressly provided herein or in the other Basic Documents,
the Servicer, in its capacity hereunder, shall not be obligated to, and shall
not, (1) make any payments to the Noteholders under the Basic Documents, (2)
sell the Pledged Property pursuant to Section 5.5 of the Indenture, (3) take any
other action that the Issuer directs the Servicer not to take on its behalf or
(4) in connection with its duties hereunder assume any indemnification
obligation of any other Person.

             SECTION 12.2. RECORDS. The Servicer shall maintain appropriate
books of account and records relating to services performed under this
Agreement, which books of account and records shall be accessible for inspection
by the Issuer at any time during normal business hours.

             SECTION 12.3. ADDITIONAL INFORMATION TO BE FURNISHED TO THE
ISSUER. The Servicer shall furnish to the Issuer from time to time such
additional information regarding the Trust Assets as the Issuer shall reasonably
request.

             SECTION 12.4. NO ADDITIONAL COMPENSATION. The Servicing Fee
payable to the Servicer pursuant to Section 5.6(c)(i) and the Simple Interest
Excess, if any, payable to the Servicer, so long as LBAC is the Servicer,
pursuant to Section 5.12 shall be the only amounts payable to the Servicer for
its services hereunder.

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                                  ARTICLE XIII
                            MISCELLANEOUS PROVISIONS

             SECTION 13.1. AMENDMENT.

         (a) This Agreement may be amended from time to time by the Issuer, the
Transferor, the Originator, the Servicer, the Trust Collateral Agent, the
Back-up Servicer and the Custodian and, (i) so long as no Note Insurer Default
has occurred and is continuing or the Policy Expiration Date has not occurred,
with the prior written consent of the Note Insurer and, (ii) if a Note Insurer
Default has occurred and is continuing or the Policy Expiration Date has
occurred with the consent of the Majorityholders, which consent given pursuant
to this Section or pursuant to any other provision of this Agreement shall be
conclusive and binding on such Holders and on all future Holders of such Notes
and of any Notes issued upon the transfer thereof or in exchange thereof or in
lieu thereof whether or not notation of such consent is made upon the Notes, for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement, or of modifying in any manner the
rights of the Holders of Notes; PROVIDED, HOWEVER, that, in the case of either
clause (i) or (ii) above, no such amendment shall (a) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, or change the
allocation or priority of, collections of payments on Receivables or payments
that shall be required to be made on any Note or the Certificate or change the
applicable Note Rate without the consent of each Noteholder and
Certificateholder affected thereby, (b) reduce the aforesaid percentage of the
Note Balance required to consent to any such amendment, without the consent of
the Holders of all Notes then outstanding or eliminate the right of the
Noteholder or the Certificateholder to consent to any change described in clause
(a) affecting the Noteholder or the Certificateholder without the consent of the
Noteholder or the Certificateholder, as applicable, or (c) result in a downgrade
or withdrawal of the then current rating of the Notes by either of the Rating
Agencies without the consent of all the Noteholders; PROVIDED, FURTHER that in
the case of clause (ii) above, this Agreement may be amended from time to time
by the Issuer, the Transferor, the Originator, the Servicer, the Trust
Collateral Agent, the Back-up Servicer and the Custodian, for any of the
following purposes:

             (x)   to correct or amplify the description of any property at
         any time conveyed to the Issuer hereunder or any Transfer Agreement, or
         better to assure, convey and confirm unto the property conveyed
         pursuant hereto or any Transfer Agreement;

             (y)   to add to the covenants of the Transferor, the Originator
         or the Servicer, for the benefit of the Holders of the Notes and the
         Note Insurer; or

             (z)   to cure any ambiguity, to correct or supplement any
         provision herein or in any Transfer Agreement which may be inconsistent
         with any other provision herein or in any Transfer Agreement or to make
         any other provisions with respect to matters or questions arising under
         this Agreement or in any Transfer Agreement; PROVIDED that such action
         pursuant to this subclause (z) 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 amendment.

                                      72
<Page>

         (b) The Trust Collateral Agent shall furnish prior notice of any such
proposed amendment to each Rating Agency and promptly after the execution of any
such amendment or consent, the Trust Collateral Agent shall furnish a copy of
such amendment and/or consent, if applicable, to each Noteholder, each of the
Rating Agencies and the Lock-Box Processor.

         (c) Prior to the execution of any amendment to this Agreement, the
Trust Collateral Agent shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and the Opinion of Counsel referred to in Section 13.2(i)(1).
The Trust Collateral Agent may, but shall not be obligated to, enter into any
such amendment which affects the Trust Collateral Agent's own rights, duties or
immunities under this Agreement or otherwise.

             SECTION 13.2. PROTECTION OF TITLE TO ISSUER.

         (a) Each of the Transferor, as to itself, and the Servicer, as to
itself, shall execute and file such financing statements and cause to be
executed and filed such continuation statements, all in such manner and in such
places as may be required by law fully to preserve, maintain, and protect the
interest of the Indenture Trustee on behalf of the Noteholders, the Trust
Collateral Agent and the Note Insurer in its interest in the Receivables and the
other Trust Assets and in the proceeds thereof. Each of the Transferor, as to
itself, and the Servicer, as to itself, shall deliver (or cause to be delivered)
to the Trust Collateral Agent, the Owner Trustee and the Note Insurer
file-stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing.

         (b) Neither the Transferor nor the Servicer shall change its name,
identity or corporate structure in any manner that would, could, or might make
any financing statement or continuation statement filed in accordance with
paragraph (a) above seriously misleading within the meaning of ss. 9-402(7) of
the UCC, unless it shall have given the Trust Collateral Agent, the Owner
Trustee, the Note Insurer and the other party at least thirty days' prior
written notice thereof, shall have promptly filed appropriate amendments to all
previously filed financing statements or continuation statements and shall have
delivered an Opinion of Counsel (A) stating that, in the opinion of such
counsel, all amendments to all previously filed financing statements and
continuation statements have been executed and filed that are necessary fully to
preserve and protect the interest of the Trust Collateral Agent in the
Receivables and the other Trust Assets, and reciting the details of such filings
or (B) stating that, in the opinion of such counsel, no such action shall be
necessary to preserve and protect such interest.

         (c) Each of the Transferor and the Servicer shall have an obligation to
give the Trust Collateral Agent, the Owner Trustee, the Note Insurer and the
other party at least thirty days' prior written notice of any relocation of its
principal executive office if, as a result of such relocation, the applicable
provisions of the UCC would require the filing of any amendment of any
previously filed financing or continuation statement or of any new financing
statement, shall promptly file any such amendment and shall deliver an Opinion
of Counsel (A) stating that, in the opinion of such counsel, all amendments to
all previously filed financing statements and continuation statements have been
executed and filed that are necessary fully to preserve and protect the interest
of the Trust Collateral Agent in the Receivables, and reciting the details of
such filings or (B) stating that, in the opinion of such counsel, no such action
shall be necessary

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<Page>

to preserve and protect such interest. The Servicer shall at all times maintain
each office from which it shall service Receivables, and its principal executive
office, within the United States of America.

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

         (e) The Servicer shall maintain its computer systems so that, from and
after the time of conveyance under this Agreement of the Receivables to the
Issuer, the Servicer's master computer records (including any back-up archives)
that refer to a Receivable shall indicate clearly the interest of Long Beach
Acceptance Auto Receivables Trust 1999-2 in such Receivable and that such
Receivable is owned by the Issuer. Indication of the Issuer's ownership of a
Receivable shall be deleted from or modified on the Servicer's computer systems
when, and only when, such Receivable shall have been paid in full or
repurchased.

         (f) If at any time the Transferor or the Servicer shall propose to
sell, grant a security interest in, or otherwise transfer any interest in
automotive receivables to any prospective purchaser, lender, or other
transferee, the Servicer shall give to such prospective purchaser, lender, or
other transferee computer tapes, records, or printouts (including any restored
from back-up archives) that, if they shall refer in any manner whatsoever to any
Receivable, shall indicate clearly that such Receivable has been conveyed to and
is owned by the Issuer.

         (g) The Servicer shall, upon reasonable notice, permit the Transferor,
the Trust Collateral Agent, the Back-up Servicer, the Owner Trustee and the Note
Insurer and its agents at any time during normal business hours to inspect,
audit, and make copies of and abstracts from the Servicer's records regarding
any Receivable.

         (h) Upon request, the Servicer shall furnish to the Transferor, the
Trust Collateral Agent, the Back-up Servicer, the Owner Trustee or to the Note
Insurer, within five Business Days, a list of all Receivables (by contract
number and name of Obligor) then held as part of the Issuer, together with a
reconciliation of such list to the Schedule of Receivables and to each of the
Servicer's Certificates furnished before such request indicating removal of
Receivables from the Issuer.

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

                  (1) promptly after the execution and delivery of this
         Agreement and of each amendment hereto and after the execution and
         delivery of each amendment to any financing statement, an Opinion of
         Counsel either (A) stating that, in the opinion of such counsel, all
         financing statements and continuation statements have been executed and
         filed that are necessary fully to preserve and protect the interest of
         the Trust Collateral Agent in the Receivables, and reciting the details
         of

                                       74
<Page>

         such filings or referring to prior Opinions of Counsel in which such
         details are given or (B) stating that, in the opinion of such counsel,
         no such action shall be necessary to preserve and protect such
         interest; and

                  (2) within 90 days after the beginning of each calendar year
         beginning with the first calendar year beginning more than three months
         after the Cutoff Date, an Opinion of Counsel, dated as of a date during
         such 90-day period either (A) stating that, in the opinion of such
         counsel, all financing statements and continuation statements have been
         executed and filed that are necessary fully to preserve and protect the
         interest of the Trust Collateral Agent in the Receivables, and reciting
         the details of such filings or referring to prior Opinions of Counsel
         in which such details are given or (B) stating that, in the opinion of
         such counsel, no such action shall be necessary to preserve and protect
         such interest.

Each Opinion of Counsel referred to in clause (i) (1) or (i) (2) above shall
specify any action necessary (as of the date of such opinion) to be taken in the
following year to preserve and protect such interest.

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

             SECTION 13.3. LIMITATION ON RIGHTS OF NOTEHOLDERS.

         (a) The death or incapacity of any Noteholder shall not operate to
terminate this Agreement or the Issuer, nor entitle such Noteholder's legal
representatives or heirs to claim an accounting or to take any action or
commence any proceeding in any court for a partition or winding up of the
Issuer, nor otherwise affect the rights, obligations and liabilities of the
parties to this Agreement or any of them.

         (b) No Noteholder shall have any right to vote (except as specifically
provided herein including in Section 13.1) or in any manner otherwise control
the operation and management of the Issuer, or the obligations of the parties to
this Agreement, nor shall anything in this Agreement set forth, or contained in
the terms of the Notes, be construed so as to constitute the Noteholders from
time to time as partners or members of an association; nor shall any Noteholder
be under any liability to any third person by reason of any action taken
pursuant to any provision of this Agreement.

         (c) 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 Agreement, 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.

         (d) If a Note Insurer Default shall have occurred and be continuing, no
Noteholder shall have any right by virtue or by availing itself of any
provisions of this Agreement to institute any suit, action, or proceeding in
equity or at law upon or under or with respect to this

                                       75
<Page>

Agreement, unless such Holder previously shall have given to the Trust
Collateral Agent a written notice of default and of the continuance thereof, and
unless also 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 shall have made written
request upon the Trust Collateral Agent to institute such action, suit or
proceeding in its own name as Trustee under this Agreement and shall have
offered to the Trust Collateral Agent such reasonable indemnity as it may
require against the costs, expenses, and liabilities to be incurred therein or
thereby and the Trust Collateral Agent, for 30 days after its receipt of such
notice, request, and offer of indemnity, shall have neglected or refused to
institute any such action, suit or proceeding and during such 30-day period no
request or waiver inconsistent with such written request has been given to the
Trust Collateral Agent pursuant to this Section or Section 8.4; no one or more
Holders of Notes shall have any right in any manner whatever by virtue or by
Availing itself or themselves of any provisions of this Agreement to affect,
disturb, or prejudice the rights of the Holders of any other of the Notes, or to
obtain or seek to obtain priority over or preference to any other such Holder,
or to enforce any right, under this Agreement except in the manner provided in
this Agreement and for the equal, ratable, and common benefit of all
Noteholders. For the protection and enforcement of the provisions of this
Section 13.3, each Noteholder and the Trust Collateral Agent shall be entitled
to such relief as can be given either at law or in equity. Nothing in this
Agreement shall be construed as giving the Noteholders any direct right to make
a claim on the Note Policy.

             SECTION 13.4. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS,
RIGHTS, AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (EXCEPT
WITH REGARD TO THE UCC).

             SECTION 13.5. NOTICES.

         (a) All demands, notices and communications upon or to the Issuer, the
Transferor, the Servicer, the Trust Collateral Agent, the Note Insurer, Standard
& Poor's or Moody's under this Agreement shall be in writing, and delivered (i)
personally, (ii) by certified mail, return receipt requested, (iii) by Federal
Express or similar overnight courier service or (iv) by telecopy, and shall be
deemed to have been duly given upon receipt (a) in the case of the Issuer, in
care of the Owner Trustee at the following address: Rodney Square North, 1100
North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
Administration (Telecopy: (302) 651-8882), (b) in the case of the Transferor, at
the following address: One Mack Centre Drive, Paramus, New Jersey 07652
(Telecopy: (201) 262-6868), Attention: General Counsel, or at such other address
as shall be designated by the Transferor in a written notice to the Trust
Collateral Agent, (c) in the case of the Servicer, at the following address: One
Mack Centre Drive, Paramus, New Jersey 07652 (Telecopy: (201) 262-6868),
Attention: General Counsel, (d) in the case of the Trust Collateral Agent, at
the Corporate Trust Office (Telecopy: (212) 946-3916), (e) in the case of the
Custodian, at the Corporate Trust Office (Telecopy: (212) 946-3916), (f) in the
case of Standard & Poor's, at the following address: 44 Water Street, 40th
Floor, New York, New York 10041, Attention: Asset Backed Surveillance
Department, (g) in the case of Moody's, at the following address: 99 Church
Street, New York, New York 10007,

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Attention: ABS Monitoring Department and (h) in the case of the Note Insurer, at
the following address: 350 Park Avenue, New York, New York 10022, Attention:
Senior Vice President, Transaction Oversight, Re: Long Beach Acceptance Auto
Receivables Trust 1999-2. Any notice required or permitted to be mailed to a
Noteholder shall be given by Federal Express or similar overnight courier
service, postage prepaid, at the address of such Holder as shown in the Note
Register. Any notice so mailed within the time prescribed in this Agreement
shall be conclusively presumed to have been duly given, whether or not the
Noteholder shall receive such notice.

         (b) The Trust Collateral Agent shall give prompt written notice to each
of the Transferor, the Rating Agencies and each Noteholder of (i) any amendments
to the Insurance Agreement or the Note Policy (upon receipt of written notice of
any such amendments from LBAC or the Servicer), (ii) any change in the identity
of the Note Paying Agent and (iii) any failure to make payment under the Note
Policy.

             SECTION 13.6. SEVERABILITY OF PROVISIONS. If any one or more
of the covenants, agreements, provisions, or terms of this Agreement shall be
for any reason whatsoever held invalid, then such covenants, agreements,
provisions, or terms shall be deemed severable from the remaining covenants,
agreements, provisions, or terms of this Agreement and shall in no way affect
the validity or enforceability of the other provisions of this Agreement or of
the Notes or the rights of the Holders thereof.

             SECTION 13.7. ASSIGNMENT TO INDENTURE TRUSTEE. The Transferor
hereby acknowledges and consents to any mortgage, pledge, assignment and grant
of a security interest by the Issuer to the Indenture Trustee pursuant to the
Indenture for the benefit of the Noteholders and the Note Insurer of all right,
title and interest of the Issuer in, to and under the Receivables and/or the
assignment of any or all of the Issuer's rights and obligations hereunder to the
Indenture Trustee.

             SECTION 13.8. LIMITATION OF LIABILITY OF OWNER TRUSTEE,
CUSTODIAN AND TRUST COLLATERAL AGENT.

         (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Wilmington Trust Company not in its
individual capacity but solely in its capacity as Owner Trustee of the Issuer
and in no event shall Wilmington Trust Company in its individual capacity or,
except as expressly provided in the Trust Agreement, as Owner Trustee, 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 of the Issuer delivered pursuant hereto, as to all of which recourse
shall be had solely to the assets of the Issuer. For all purposes of this
Agreement, in the performance of its duties or obligations hereunder or 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) Notwithstanding anything contained herein to the contrary, this
Agreement has been executed and delivered by Chase Manhattan, not in its
individual capacity but solely as Back-up Servicer, Custodian and Trust
Collateral Agent and in no event shall Chase Manhattan have any liability for
the representations, warranties, covenants, agreements or other obligations

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of the Issuer hereunder or in any of the certificates, notices or agreements of
the Issuer delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuer.

              SECTION 13.9. INDEPENDENCE OF THE SERVICER. For all purposes
of this Agreement, the Servicer shall be an independent contractor and shall not
be subject to the supervision of the Issuer, the Trust Collateral Agent, the
Back-up Servicer or the Owner Trustee with respect to the manner in which it
accomplishes the performance of its obligations hereunder. Unless expressly
authorized by this Agreement, the Servicer shall have no authority to act for or
represent the Issuer or the Owner Trustee in any way and shall not otherwise be
deemed an agent of the Issuer or the Owner Trustee.

              SECTION 13.10. NO JOINT VENTURE. Nothing contained in this
Agreement (i) shall constitute the Servicer and either of the Issuer or the
Owner Trustee as members of any partnership, joint venture, association,
syndicate, unincorporated business or other separate entity, (ii) shall be
construed to impose any liability as such on any of them or (iii) shall be
deemed to confer on any of them any express, implied or apparent authority to
incur any obligation or liability on behalf of the others.

              SECTION 13.11. NONPETITION COVENANT. None of the Transferor,
the Servicer, the Trust Collateral Agent, the Custodian, the Back-up Servicer or
LBAC shall, prior to the date which is one year and one day after the
termination of this Agreement with respect to the Issuer or the Transferor,
petition or otherwise invoke the process of any court or government authority
for the purpose of commencing or sustaining a case against the Issuer or the
Transferor under any Federal or State bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Issuer or the Transferor or any substantial part
of its property, or ordering the winding up or liquidation of the affairs of the
Issuer or the Transferor.

              SECTION 13.12. THIRD PARTY BENEFICIARIES. Except as otherwise
specifically provided herein with respect to Noteholders, the parties to this
Agreement hereby manifest their intent that no third party other than the Note
Insurer, the Owner Trustee and the Custodian with respect to the indemnification
provisions set forth herein, shall be deemed a third party beneficiary of this
Agreement, and specifically that the Obligors are not third party beneficiaries
of this Agreement. The Note Insurer and its successors and assigns shall be a
third-party beneficiary to the provisions of this Agreement, and shall be
entitled to rely upon and directly enforce such provisions of this Agreement so
long as no Note Insurer Default shall have occurred and be continuing. Except as
expressly stated otherwise herein or in the Basic Documents, any right of the
Note Insurer to direct, appoint, consent to, approve of or take any action under
this Agreement, shall be a right exercised by the Note Insurer in its sole and
absolute discretion. The Note Insurer may disclaim any of its rights and powers
under this Agreement (but not its duties and obligations under the Note Policy)
upon delivery of a written notice to the Trust Collateral Agent.

              SECTION 13.13. CONSENT TO JURISDICTION.

         (a)  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES
HERETO HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE

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UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY COURT
IN THE STATE OF NEW YORK LOCATED IN THE CITY AND COUNTY OF NEW YORK, AND ANY
APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION, SUIT OR PROCEEDING BROUGHT
AGAINST IT AND TO OR IN CONNECTION WITH ANY OF THE TRANSACTION DOCUMENTS OR THE
TRANSACTION OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND THE PARTIES
HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREE THAT ALL CLAIMS IN RESPECT
OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD OR DETERMINED IN SUCH NEW YORK
STATE COURT OR IN SUCH FEDERAL COURT. THE PARTIES HERETO AGREE THAT A FINAL
JUDGMENT IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO
HEREBY WAIVE AND AGREE NOT TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE
IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY
SUBJECT TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT, ACTION OR PROCEEDING
IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION OR
PROCEEDING IS IMPROPER OR THAT THE RELATED DOCUMENTS OR THE SUBJECT MATTER
THEREOF MAY NOT BE LITIGATED IN OR BY SUCH COURTS.

         (b)  To the extent permitted by applicable law, the parties hereto
shall not seek and hereby waive the right to any review of the judgment of any
such court by any court of any other nation or jurisdiction which may be called
upon to grant an enforcement of such judgment.

         (c)  Each of LBAC and the Transferor hereby agree that until such time
at the Notes and the Reimbursement Obligations have been paid in full and the
Note Policy has expired in accordance with its terms, each of LBAC and the
Transferor shall have appointed, with prior written notice to the Note Insurer,
an agent registered with the Secretary of State of the State of New York, with
an office in the County of New York in the State of New York, as its true and
lawful attorney and duly authorized agent for acceptance of service of legal
process (which as of the date hereof is National Registered Agents, Inc., whose
address is 105 Chambers Street, New York, New York 10007). Each of LBAC and the
Transferor agrees that service of such process upon such Person shall constitute
personal service of such process upon it.

              SECTION 13.14. HEADINGS. The headings of articles and sections
and the table of contents contained in this Agreement are provided for
convenience only. They form no part of this Agreement and shall not affect its
construction or interpretation. Unless otherwise indicated, all references to
articles and sections in this Agreement refer to the corresponding articles and
sections of this Agreement.

              SECTION 13.15. TRIAL BY JURY WAIVED. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION ARISING DIRECTLY OR INDIRECTLY OUT OF, UNDER OR IN
CONNECTION WITH ANY OF THE TRANSACTION DOCUMENTS OR THE TRANSACTION. EACH PARTY
HERETO (A) CERTIFIES THAT

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<Page>

NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY PARTY HERETO HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT IT WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THE TRANSACTION DOCUMENTS TO WHICH IT IS A PARTY BY, AMONG OTHER
THINGS, THIS WAIVER.

              SECTION 13.16. ENTIRE AGREEMENT. This Agreement sets forth the
entire agreement between the parties with respect to the subject matter hereof,
and this Agreement supersedes and replaces any agreement or understanding that
may have existed between the parties prior to the date hereof in respect of such
subject matter.

              SECTION 13.17. 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 Agreement 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 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 Class B Noteholders holding in
the aggregate more than 50% of the outstanding Class B Note Balance shall have
the right to take or omit to take any such action following the Policy
Expiration Date. In addition, any other provision of this Agreement 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.

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                  IN WITNESS WHEREOF, the Issuer, the Transferor, the
Originator, the Servicer, the Trust Collateral Agent, the Back-up Servicer and
the Custodian have caused this Sale and Servicing Agreement to be duly executed
by their respective officers as of the day and year first above written.

                                   LONG BEACH ACCEPTANCE
                                   RECEIVABLES CORP., as Transferor

                                   By: ________________________________________
                                       Name:
                                       Title:

                                   LONG BEACH ACCEPTANCE CORP.,
                                   as Originator and Servicer

                                   By: ________________________________________
                                       Name:
                                       Title:

                                   THE CHASE MANHATTAN BANK,
                                   as Back-up Servicer, Custodian and Trust
                                   Collateral Agent

                                   By: ________________________________________
                                       Name:
                                       Title:

                                   LONG BEACH ACCEPTANCE AUTO
                                   RECEIVABLES TRUST 1999-2, as Issuer

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

                                   By: ________________________________________
                                       Name:
                                       Title:

                         [Sale and Servicing Agreement]

<Page>

                                                                         ANNEX A

                                  DEFINED TERMS

                                     Annex A
<Page>

                                                                     EXHIBIT A-1

                              Issuer's Certificate
                             pursuant to Section 3.4
                            of the Sale and Servicing
                                    Agreement

Reference is made to the Sale and Servicing Agreement (the "Agreement"), dated
as of December 1, 1999, among Long Beach Acceptance Receivables Corp., Long
Beach Acceptance Corp., as originator and as servicer, The Chase Manhattan Bank,
as trust collateral agent, custodian and back-up servicer and Long Beach
Acceptance Auto Receivables Trust 1999-2, as issuer (the "Issuer"). The Issuer
does hereby sell, transfer, assign, and otherwise convey to LBAC, without
recourse, representation, or warranty, all of the Issuer's right, title, and
interest in and to all of the Receivables (as defined in the Agreement)
identified in the attached Servicer's Certificate as "Purchased Receivables,"
which are to be repurchased by LBAC pursuant to Section 3.4 of the Agreement,
and all security and documents relating thereto.

IN WITNESS WHEREOF I have hereunto set my hand this __ day of ________________,
___.

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

                                     A-1-1
<Page>

                                                                     EXHIBIT A-2

                              Issuer's Certificate
                             pursuant to Section 4.7
                            of the Sale and Servicing
                                    Agreement

Reference is made to the Sale and Servicing Agreement (the "Agreement"), dated
as of December 1, 1999, among Long Beach Acceptance Receivables Corp., Long
Beach Acceptance Corp., as originator and as servicer, The Chase Manhattan Bank,
as trust collateral agent, custodian and back-up servicer and Long Beach
Acceptance Auto Receivables Trust 1999-2, as issuer (the "Issuer"). The Issuer
does hereby sell, transfer, assign, and otherwise convey to the Servicer,
without recourse, representation, or warranty, all of the Issuer's right, title,
and interest in and to all of the Receivables (as defined in the Agreement)
identified in the attached Servicer's Certificate as "Purchased Receivables,"
which are to be purchased by the Servicer pursuant to Section 4.7 of the
Agreement, and all security and documents relating thereto.

IN WITNESS WHEREOF I have hereunto set my hand this __ day of ________________,
____.

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

                                     A-2-1
<Page>

                                                                     EXHIBIT B-1

                             SERVICER'S CERTIFICATE
               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 1999-2
                       6.94% ASSET-BACKED NOTES, CLASS A-1
                       7.32% ASSET-BACKED NOTES, CLASS A-2
                       12.00% ASSET-BACKED NOTES, CLASS B

                                     B-1-1
<Page>

                                                                     EXHIBIT B-2

                         Form of Loan Master File Layout

                                     B-2-1
<Page>

                                                                       EXHIBIT C

                              INTENTIONALLY OMITTED

                                      C-1
<Page>

                                                                       EXHIBIT D

                            PAYMENT DEFERMENT POLICY

 -       LBAC may grant a payment deferment provided that the deferment period
         does not exceed 1 month (2 months if 12 or more payments have been made
         and if the deferment is granted in writing by the President, or an
         Executive Vice President, or the National Collections Manager, or a
         Regional Manager).

 -       Not more than 1 deferment event (which may consist of a 2 month
         deferment according to the exceptions included in the policy) may be
         granted during any 12-month period.

 -       The aggregate of all deferment periods during the term of a Receivable
         may not exceed the lesser of 8 months or 50% of the weighted average
         life of the original term of the Receivable (including deferments
         granted both before and after the related Cut-Off Date).

 -       At least 6 payments must be made before a deferment may be granted.

 -       A request for a deferment must be made in writing.

 -       The deferment must bring the account current, so that after the
         deferment is processed no payment is then due.

 -       Except as otherwise set forth in this policy, deferments must be
         granted in writing by the Collection Manager or someone of equal or
         higher rank.

 -       A deferment fee will be collected for each deferment if allowed by
         applicable law and may be waived or deferred only by the President, or
         an Executive Vice President, or the National Collections Manager, or a
         Regional Manager; PROVIDED, HOWEVER, that no deferment will be granted
         unless the Servicer believes in good faith that the account probably
         would default in the reasonably foreseeable future if a deferment is
         not approved.

 -       Deferments which do not meet the above criteria may be granted in
         writing on an exception basis (e.g., when required by law) by the
         President, or an Executive Vice President, or the National Collections
         Manager, or a Regional Manager.

 -       As of April 1, 2000, and the first day of each calendar quarter
         thereafter, the aggregate number of Receivables the terms of which have
         been extended during the preceding calendar quarter shall not exceed 4%
         of the number of Receivables at the beginning of the preceding calendar
         quarter.

 -       No deferment may extend the date for final payment of a Receivable
         beyond the last day of the record Collection Period preceding the Final
         Scheduled Payment Date.

                                       D-1
<Page>

                             DUE DATE CHANGE POLICY

 -       LBAC may grant a due date change, PROVIDED that the new due date is
         within 20 days of the current due date.

 -       Not more than 2 due date changes may be granted over the term of a
         Receivable.

 -       If 2 due date changes are granted, the total number of days by which
         the maturity date is extended may not exceed 20.

 -       A request for a due date change must be made in writing.

 -       The account must be current at the time the request is received.

 -       Due date changes must be granted in writing by the Collection Manager
         or someone of equal or higher rank.

 -       No due date change may be granted if the aggregate of all deferment
         periods and the requested due date change would exceed the lesser of 8
         months or 50% of the original term of the Receivable.

                                       D-2
<Page>

                                                                       EXHIBIT E

                             DOCUMENTATION CHECKLIST

CUSTOMER:
         -----------------------------------------------------------------------

ACCOUNT NUMBER:
               -----------------------------------------------------------------

This funding package contains the following initialed items:

<Table>
        <S>     <C>                                                                  <C>
        1.       Installment contract with proper signatures and Dealer endorsements  1.__________________

        2.       Copy of signed credit application                                    2.__________________

        3.       References as described in the Program Guidelines                    3.__________________

        4.       Proof of income as described in the Program Guidelines               4.__________________

        5.       Copy of driver's license for all licensed signors                    5.__________________

        6.       Title information  (application and copy of existing title, receipt
                 of  registration,   or  title  copy  already  received)  with  lien
                 notation thereon, or Dealer Title Guaranty                           6.__________________

        7.       Invoice or copy of computer  screen  printout  showing  NADA value,
                 NADA book page, Kelley printout or Kelley Blue Book page             7.__________________

        8.       In the case of a used Financed Vehicle,  odometer statement (if not
                 on title info)                                                       8.__________________

        9.       Signed  agreement to provide  insurance and  verification  paper or
                 other evidence of verification of insurance coverage                 9.__________________

        10.      Notice to cosignor, if required                                      10._________________

        11.      Service contract or warranty papers                                  11._________________

        12.      Life,  accident,   health  and  GAP  insurance  policy  copies,  as
                 applicable                                                           12._________________

        13.      Signed purchase order from dealer to customer                        13._________________
</Table>

                                       E-1
<Page>

                                                                       EXHIBIT F

                  [Form of Request for Transfer of Possession]

                                ___________, 19__

The Chase Manhattan Bank
450 West 33rd St., 14th Floor
New York, NY 10001
Attention:  Capital Markets Fiduciary Services

Attention:  __________
Telephone:  ___________
Telecopy:  ____________

Ladies and Gentlemen:

Reference is made to the Sale and Servicing Agreement, dated as of December 1,
1999 (the "Sale and Servicing Agreement"), among LONG BEACH ACCEPTANCE
RECEIVABLES CORP., a Delaware corporation, as transferor, LONG BEACH ACCEPTANCE
CORP., a Delaware corporation, as originator and servicer, LONG BEACH ACCEPTANCE
AUTO RECEIVABLES TRUST 1999-2, a Delaware business trust, as issuer (the
"Issuer"), THE CHASE MANHATTAN BANK, a New York banking corporation, as trust
collateral agent, back-up servicer and custodian (in such capacity, the
"Custodian"). Capitalized terms used but not defined in this letter have the
meanings set forth in the Sale and Servicing Agreement.

The Servicer hereby requests that the Custodian transfer possession of the Legal
Files, or such portion of the Legal Files as is identified herein, relating to
the Receivables listed in Annex A hereto to [the Servicer] [________________ as
subservicer (the "Subservicer") for the Servicer] [for purposes of collection or
presentation, renewal or registration of transfer (unless the related
Receivables' Owner objects to this request to the Custodian (i) by 5:00 PM on
the same Business Day this request is made if it is made by 1:00 PM or (ii) by
11:00 AM on the next Business Day if this request is made after 1:00 PM] [for
purposes of correcting deficiencies in the Legal Files], the possession of which
is transferred pursuant to this request will be transferred subject to a
Custodial Letter duly executed by [the Servicer] [the Subservicer] and a
Transfer Notice duly executed by the Custodian. [The portion of the Legal Files
requested for transfer of possession hereunder is ___________.]

                               Very truly yours,

                               LONG BEACH ACCEPTANCE CORP.

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

                                       F-1
<Page>

                                                                       EXHIBIT G

                           [Form of Custodial Letter]

                                ___________, 19__

The Chase Manhattan Bank
450 West 33rd St., 14th Floor
New York, NY 10001
Attention:  Capital Markets Fiduciary Services

Attention:  __________
Telephone:  ___________
Telecopy:  ____________

Ladies and Gentlemen:

Reference is made to the Sale and Servicing Agreement, dated as of December 1,
1999 (the "Sale and Servicing Agreement"), among LONG BEACH ACCEPTANCE
RECEIVABLES CORP., a Delaware corporation, as transferor, LONG BEACH ACCEPTANCE
CORP., a Delaware corporation, as originator and servicer, LONG BEACH ACCEPTANCE
AUTO RECEIVABLES TRUST 1999-2, a Delaware business trust, as issuer (the
"Issuer"), THE CHASE MANHATTAN BANK, a New York banking corporation, as trust
collateral agent, custodian and back-up servicer. Capitalized terms used but not
defined in this letter have the meanings set forth in the Sale and Servicing
Agreement.

[The Servicer] [_____________________, as Subservicer (the "Subservicer") for
the Servicer] acknowledges that the Issuer is owner of all Receivables (and
their proceeds). The Agreement provides that the Servicer, or the Subservicer,
may request from time to time that possession of all or a portion of the Legal
Files delivered to and held by the Custodian pursuant to the Sale and Servicing
Agreement be transferred to [the Servicer] [the Subservicer] [for purposes of
collection, or presentation, renewal or registration of transfer] [for purposes
of correcting deficiencies in the Legal Files]. Subject to the terms of the Sale
and Servicing Agreement, the Custodian is authorized to so transfer possession
of such Legal Files, or portion thereof, such transfer of possession to be
accomplished pursuant to a Transfer Notice substantially in the form of Annex A
to this Custodial Letter.

[The Servicer] [The Subservicer] hereby agrees as follows:

(a) [The Servicer] [The Subservicer] acknowledges that the possession of any
such Legal Files will be so transferred subject to this Custodial Letter and
that they are and will continue to be the sole property of the Issuer.

(b) [The Servicer] [The Subservicer] agrees that such Legal Files will be
returned to the Custodian immediately upon notice by the Custodian or the Trust
Collateral Agent that sixty (60) days have elapsed from the date of such
transfer; PROVIDED, that instead of sixty (60) days, the time limit applicable
to any certificate of title is one hundred twenty (120) days.

                                       G-1
<Page>

(c) The Legal Files will not be used for any purpose other than that for which
[the Servicer] [the Subservicer] hereby requests such transfer of possession.

(d) At all times while the Legal Files are in [the Servicer's] [the
Subservicer's] possession, [the Servicer] [the Subservicer] will hold the Legal
Files IN TRUST for the Indenture Trustee, the Issuer, the Noteholders and the
Note Insurer.

(e) [The Servicer] [The Subservicer] will include this Custodial Letter and each
Transfer Notice in its business records.

(f) [The Servicer] [The Subservicer] will not deliver the Legal Files to any
person other than the Custodian except with the prior written consent of the
Trust Collateral Agent.

This Custodial Letter shall be governed by and construed in accordance with the
laws of the State of Texas.

                               LONG BEACH ACCEPTANCE CORP.

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

                               [SUBSERVICER'S NAME]

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

                                       G-2
<Page>

                                         EXHIBIT G - ANNEX A to Custodial Letter

                            [Form of Transfer Notice]

[Long Beach Acceptance Corp.
One Mack Centre Drive
Paramus, New Jersey 07652
Telecopy:  (201) 262-6868]

[Subservicer (the "Subservicer")
Address
Address
Telecopy:_______________________]

Ladies and Gentlemen:

Reference is made to the Sale and Servicing Agreement, dated as of December 1,
1999 (the "Sale and Servicing Agreement"), among LONG BEACH ACCEPTANCE
RECEIVABLES CORP., a Delaware corporation, as transferor, LONG BEACH ACCEPTANCE
CORP., a Delaware corporation, as originator and servicer, LONG BEACH ACCEPTANCE
AUTO RECEIVABLES TRUST 1999-2, a Delaware business trust, as issuer (the
"Issuer"), THE CHASE MANHATTAN BANK, a New York banking corporation, as trust
collateral agent, back-up servicer and custodian. Capitalized terms used but not
defined in this letter have the meanings set forth in the Sale and Servicing
Agreement.

The possession of the Legal Files relating to the Receivables listed in Annex A
is transferred to you IN TRUST for the Issuer, the Indenture Trustee, the Note
Holders and the Note Insurer, subject to the terms and provisions of the Sale
and Servicing Agreement, and subject to the Custodial Letter you executed
pursuant to Section 3.5(c) of the Sale and Servicing Agreement.

                               Very truly yours,

                               THE CHASE MANHATTAN BANK

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

                                       G-3
<Page>

                                          EXHIBIT G - ANNEX A to Transfer Notice

<Table>
<Caption>
              Receivable          Amount of                Name of
                Number           Receivable          Receivable Borrower
    ---------------------------------------------------------------------------
    <S>                          <C>                 <C>

</Table>

                                      G-4
<Page>

                                                                       EXHIBIT H

                           FORM OF TRANSFER AGREEMENT

              TRANSFER NO. __________ OF SUBSEQUENT RECEIVABLES, dated as of
___________, _____, among LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 1999-2, a
Delaware business trust (the "Issuer" or the "Trust"), LONG BEACH ACCEPTANCE
CORP., a Delaware corporation ("LBAC" or the "Originator"), LONG BEACH
ACCEPTANCE RECEIVABLES CORP., a Delaware corporation (the "Transferor"), and THE
CHASE MANHATTAN BANK, a New York banking corporation, as trust collateral agent
(in such capacity, the "Trust Collateral Agent"), back-up servicer and custodian
pursuant to the Sale and Servicing Agreement referred to below.

                              W I T N E S S E T H:

              WHEREAS, LBAC, the Transferor, the Issuer and the Trust
Collateral Agent are parties to the Sale and Servicing Agreement, dated as of
December 1, 1999 (the "Sale and Servicing Agreement");

              WHEREAS, LBAC and the Transferor are parties to the Purchase
Agreement, dated as of December 1, 1999 (the "Purchase Agreement");

              WHEREAS, pursuant to the Purchase Agreement and the Subsequent
Assignment, LBAC desires to convey certain Subsequent Receivables to the
Transferor and pursuant to the Sale and Servicing Agreement and this Agreement
the Transferor desires to convey such Subsequent Receivables to the Issuer; and

              WHEREAS, the Issuer is willing to accept such conveyance
subject to the terms and conditions hereof.

              NOW, THEREFORE, the Issuer, the Transferor, the Trust
Collateral Agent and LBAC hereby agree as follows:

SECTION 1. DEFINED TERMS. Capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in the Sale and
Servicing Agreement.

               "Agreement" means this Transfer Agreement and all amendments
hereof and supplements hereto.

               "Subsequent Cutoff Date" means, with respect to the Subsequent
Receivables conveyed hereby, the close of business of the last day of the
calendar month immediately preceding the Subsequent Transfer Date, which date is
_______________.

               "Subsequent Receivables" means the Receivables identified on
the supplement to the Schedule of Receivables attached as Schedule A hereto.

               "Subsequent Receivables Purchase Price" means $__________.

                                       H-1
<Page>

               "Subsequent Spread Account Deposit" means $__________.

               "Subsequent Transfer Date" means, with respect to the
Subsequent Receivables conveyed hereby, ________________________.

                  "Subsequent Transferred Property" shall have the meaning
specified in Section 2.3(a) of the Purchase Agreement.

SECTION 2. SCHEDULE OF SUBSEQUENT RECEIVABLES. Annexed hereto as Schedule A is a
supplement to the Schedule of Receivables listing the Subsequent Receivables to
be conveyed by the Transferor to the Issuer pursuant to this Agreement and the
Sale and Servicing Agreement on the Subsequent Transfer Date.

SECTION 3.   CONVEYANCE OF SUBSEQUENT RECEIVABLES. Subject to the conditions set
forth in Section 5 hereof, in consideration of the payment of the Subsequent
Receivables Purchase Price to or upon the written order of the Transferor, the
Transferor does hereby sell, transfer, assign, set over and otherwise convey to
the Issuer, in trust for the benefit of the Noteholders and the Note Insurer,
without recourse, all right, title and interest of the Transferor in and to:

             (1) the Subsequent Receivables listed in Schedule A hereto,
all monies received on such Subsequent Receivables after the Subsequent Cut-off
Date and, with respect to any Subsequent Receivables which are Precomputed
Receivables, the related Payahead Amount and all Liquidation Proceeds and
Recoveries received with respect to such Subsequent Receivables;

             (2) the security interests in the Financed Vehicles granted by
the related Obligors pursuant to the Subsequent 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;

             (3) 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;

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

             (5) this Agreement, the Purchase Agreement and the Guarantee,
including, without limitation, a direct right to cause LBAC to purchase
Subsequent Receivables from the Trust upon the occurrence of a breach of any of
the representations and warranties contained in Section 4 of this Agreement or
the failure of LBAC to timely comply with its obligations pursuant to Section
5.5 of the Purchase Agreement;

             (6) 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 a related

                                      H-2
<Page>

Financed Vehicle or his or her obligations with respect to a related Financed
Vehicle and any recourse to Dealers for any of the foregoing;

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

             (8)  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 Subsequent Receivables;

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

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

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE ORIGINATOR. The Originator
makes the following representations and warranties as to the Subsequent
Receivables and the other Transferred Property relating thereto on which the
Transferor relies in accepting the Subsequent Receivables and the other
Transferred Property relating thereto and on which the Note Insurer will rely in
issuing the Policy. Such representations and warranties speak as of the
execution and delivery of this Agreement, but shall survive the sale, transfer,
and assignment of the Subsequent Receivables and the other Transferred Property
relating thereto to the Transferor and the subsequent assignment and transfer
pursuant to the Sale and Servicing Agreement:

             (1) ORIGINATION DATE. Each Subsequent Receivable has an
Origination Date on or after ________________.

             (2) PRINCIPAL BALANCE/NUMBER OF CONTRACTS. As of the
Subsequent Cutoff Date, the total aggregate Principal Balance of the Subsequent
Receivables was $_______________. The Subsequent Receivables are evidenced by
_______ retail installment sale contracts.

             (3) MATURITY OF SUBSEQUENT RECEIVABLES. Each Subsequent
Receivable has an original term to maturity of not less than [__] months and not
more than [__] months; the weighted average original term to maturity of the
Subsequent Receivables is [___] months as of the Subsequent Cutoff Date; the
remaining term to maturity of each Subsequent Receivable was __ months or less
as of the Subsequent Cutoff Date; the weighted average remaining term to
maturity of the Subsequent Receivables was [___] months as of the Subsequent
Cutoff Date.

             (4) CHARACTERISTICS OF SUBSEQUENT RECEIVABLES. (A) Each
Subsequent Receivable (1) has been originated in the United States of America by
a Dealer for the retail sale of a Financed Vehicle in the ordinary course of
such Dealer's business, such Dealer had all necessary licenses and permits to
originate such Subsequent Receivables in the State where such Dealer was
located, has been fully and properly executed by the parties thereto and has
been purchased by LBAC from such Dealer under an existing Dealer Agreement with
LBAC, in connection with the sale of Financed Vehicles by the Dealers, and was
validly assigned by such

                                       H-3
<Page>

Dealer to LBAC in accordance with its terms, (2) has created a valid, subsisting
and enforceable first priority security interest in favor of LBAC in the
Financed Vehicle, which security interest is assignable and has been validly
assigned by LBAC to the Transferor, which in turn has been validly pledged by
the Transferor to the Trust pursuant to the Sale and Servicing Agreement, which
in turn has been validly assigned by the Issuer to the Indenture Trustee
pursuant to the Indenture, (3) contains customary and enforceable provisions
such that the rights and remedies of the holder or assignee thereof shall be
adequate for realization against the collateral of the benefits of the security,
(4) provides for level monthly payments that fully amortize the Amount Financed
over the original term (except for the first or last payment, which may be
minimally different from the level payment) and yield interest at the Annual
Percentage Rate, (5) has an Annual Percentage Rate of not less than ____%, (6)
in the case of a Subsequent Receivable that is a Precomputed Receivable, in the
event that such Subsequent Receivable is prepaid, provides for a prepayment that
fully pays the Principal Balance and includes, unless prohibited by applicable
law, a full month's interest, in the month of prepayment, at the Annual
Percentage Rate, (7) is a Precomputed Receivable or a Simple Interest
Receivable, and (8) was originated by a Dealer to an Obligor and was sold by the
Dealer to LBAC without any fraud or misrepresentation on the part of such Dealer
or on the part of the Obligor; and (B) approximately [ ]% of the aggregate
Principal Balance of the Subsequent Receivables, constituting [ ]% of the number
of contracts, as of the Subsequent Cutoff Date, represents financing of used
automobiles, vans, sport utility vehicles or light duty trucks; the remainder of
the Subsequent Receivables represent financing of new automobiles, vans, sport
utility vehicles or light duty trucks; approximately [ ]% of the aggregate
Principal Balance of the Subsequent Receivables as of the Subsequent Cutoff Date
were originated under the LBAC Class I program; approximately [ ]% of the
aggregate Principal Balance of the Subsequent Receivables as of the Subsequent
Cutoff Date were originated under the LBAC Class IIA program; approximately [ ]%
of the aggregate Principal Balance of the Subsequent Receivables as of the
Subsequent Cutoff Date were originated under the LBAC Class IIB program;
approximately [ ]% of the aggregate Principal Balance of the Subsequent
Receivables as of the Subsequent Cutoff Date were originated under the LBAC
Class III program; approximately [ ]% of the aggregate Principal Balance of the
Subsequent Receivables as of the Subsequent Cutoff Date were originated under
the LBAC Class IV program; no Subsequent Receivable shall have a payment that is
more than 29 days overdue (calculated on the basis of a 360-day year of twelve
30-day months) as of the Subsequent Cutoff Date; [ ]% of the Subsequent
Receivables are Precomputed Receivables and [ ]% of the Subsequent Receivables
are Simple Interest Receivables; each Subsequent Receivable shall have a final
scheduled payment due no later than _____________, 200__; and each Subsequent
Receivable was originated on or before the Subsequent Cutoff Date.

             (5) SCHEDULED PAYMENTS. Each Subsequent Receivable had an
original Principal Balance of not less than $______ nor more than $__________,
has an outstanding Principal Balance as of the Subsequent Cutoff Date of not
less than $_______ and not more than $__________ and has a first Scheduled
Payment due, in the case of Precomputed Receivables, or a scheduled due date, in
the case of Simple Interest Receivables, on or prior to
------------, ----.

             (6) NO BANKRUPTCIES. No Obligor was bankrupt at the time of
origination of the related Subsequent Receivable and no Obligor on any
Subsequent Receivable as of the

                                       H-4
<Page>

Subsequent Cutoff Date was noted in the related Receivable File as having filed
for bankruptcy since origination of the Subsequent Receivable and neither
discharged, dismissed nor reaffirmed.

             (7) ORIGINATION OF SUBSEQUENT RECEIVABLES. Based on the
location of the Dealers and the Principal Balances as of the Subsequent Cutoff
Date, approximately [ ]% of the Subsequent Receivables were originated in
California, approximately [ ]% of the Subsequent Receivables were originated in
New York and the remaining [ ]% of the Subsequent Receivables were originated in
other States.

             (8) LOCKBOX. Prior to the Subsequent Transfer Date, the
Transferor will notify each Obligor to make payments with respect to its
respective Subsequent Receivable after the Subsequent Cutoff Date directly to
the Lockbox, and will provide each Obligor with a monthly statement in order to
enable such Obligor to make payments directly to the Lockbox.

             (9) LOCATION OF LEGAL FILES; ONE ORIGINAL. A complete Legal
File with respect to each Subsequent Receivable has been or prior to the
Subsequent Transfer Date will be delivered to the Custodian at the location
listed in Schedule B to the Sale and Servicing Agreement. There is only one
original executed copy of each Subsequent Receivable.

             (10) SCHEDULE OF SUBSEQUENT RECEIVABLES; SELECTION PROCEDURES.
The information with respect to the Subsequent Receivables set forth in the
Schedule A to this Agreement is true and correct in all material respects as of
the close of business on the Subsequent Cutoff Date and the Subsequent Transfer
Date, and no selection procedures adverse to the Trust, the Noteholders or to
the Note Insurer have been utilized in selecting the Subsequent Receivables. The
computer tape or other listing regarding the Subsequent Receivables made
available to the Transferor and its assigns is true and correct as of the
Subsequent Cutoff Date and the Subsequent Transfer Date in all respects. By the
Subsequent Transfer Date, LBAC will have caused the portions of LBAC's servicing
records relating to the Subsequent Receivables to be clearly and unambiguously
marked to show that the Subsequent Receivables constitute part of the Trust
Assets and are owned by the Trust in accordance with the terms of the Sale and
Servicing Agreement.

             (11) COMPLIANCE WITH LAW. Each Subsequent Receivable, the sale
of the Financed Vehicle and the sale of any physical damage, credit life and
credit accident and health insurance and any extended service contracts complied
at the time the related Subsequent Receivable was originated or made and at the
execution of this Agreement complies in all material respects with all
requirements of applicable Federal, State and local laws, and regulations
thereunder including, without limitation, usury laws, the Federal
Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit
Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade
Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board's
Regulations B and Z (including amendments to the Federal Reserve's Official
Staff Commentary to Regulation Z effective October 1, 1998 concerning negative
equity loans), the Soldiers' and Sailors' Civil Relief Act of 1940, as amended,
the California Automobile Sales Finance Act, and state adaptations of the
National Consumer Act and of the Uniform Consumer Credit Code, and other
consumer credit laws and equal credit opportunity and disclosure laws.

                                      H-5
<Page>

             (12) BINDING OBLIGATION. Each Subsequent Receivable represents
the genuine, legal, valid and binding payment obligation in writing of the
Obligor, enforceable by the holder thereof in accordance with its terms and all
parties to each Subsequent Receivable had full legal capacity to execute and
deliver such Subsequent Receivable and all other documents related thereto and
to grant the security interest purported to be granted thereby.

             (13) NO GOVERNMENT, CORPORATE OR FLEET OBLIGOR. None of the
Subsequent Receivables are due from the United States of America or any State or
from any agency, department, or instrumentality of the United States of America
or any State. All of the Subsequent Receivables are due from Obligors who are
natural persons or, if any Obligor is not a natural person, (a) such entity is
an obligor with respect to five or fewer Financed Vehicles and (b) the related
Subsequent Receivable or Subsequent Receivables have the benefit of the personal
guaranty of a natural person or persons. No Subsequent Receivable has been
included in a "fleet" sale (i.e., a sale to any single Obligor of more than five
Financed Vehicles).

             (14) SECURITY INTEREST IN FINANCED VEHICLE. Immediately prior
to the sale, assignment, and transfer thereof, each Subsequent Receivable shall
be secured by a validly perfected first priority security interest in the
Financed Vehicle in favor of LBAC as secured party, and such security interest
is prior to all other liens upon and security interests in such Financed Vehicle
which now exist or may hereafter arise or be created (except, as to priority,
for any lien for taxes, labor or materials or any other non-consensual lien
affecting a Financed Vehicle arising subsequent to the Subsequent Transfer
Date), and either (i) all necessary and appropriate actions have been taken that
would result in the valid perfection of a first priority security interest in
the Financed Vehicle in favor of LBAC as secured party, and the Lien Certificate
for each Financed Vehicle shows, or if a new or replacement Lien Certificate is
being applied for a new or replacement Lien Certificate will be received within
150 days of the Subsequent Transfer Date and will show LBAC named as the
original secured party under any such Subsequent Receivable and the holder of a
first priority security interest in such Financed Vehicle, or (ii) a Dealer
Title Guaranty has been obtained with respect to such Financed Vehicle. With
respect to each Subsequent Receivable for which the Lien Certificate has not yet
been submitted to, or returned from, the Registrar of Titles, LBAC has received
either (i) written evidence from the related Dealer that such Lien Certificate
showing LBAC as the first lienholder has been applied for or (ii) a Dealer Title
Guaranty with respect to such Financed Vehicle. Immediately after the sale,
transfer and assignment thereof to the Trust, each Subsequent Receivable will be
secured by an enforceable first priority security interest in the Financed
Vehicle in favor of the Trust as secured party, which security interest is prior
to all other liens upon and security interests in such Financed Vehicle which
now exist or may hereafter arise or be created (except, as to priority, for the
lien of the Indenture and for any lien for taxes, labor or materials or any
other non-consensual lien affecting a Financed Vehicle arising subsequent to the
Subsequent Transfer Date).

             (15) SUBSEQUENT RECEIVABLES IN FORCE. No Subsequent Receivable
has been satisfied, subordinated or rescinded, nor has any Financed Vehicle been
released from the lien granted by the related Subsequent Receivable in whole or
in part. No provisions of any Subsequent Receivable have been waived, altered or
modified in any respect since its origination, except by instruments or
documents identified in the related Legal File on the

                                      H-6
<Page>

Subsequent Transfer Date. No Subsequent Receivable has been modified as a result
of application of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended.

             (16) NO WAIVER. No provision of a Subsequent Receivable has been
waived.

             (17) NO AMENDMENTS. No Subsequent Receivable has been amended
except to the extent reflected in the related Legal File on the Subsequent
Transfer Date.

             (18) NO DEFENSES. As of the Subsequent Transfer Date, no right
of rescission, setoff, counterclaim or defense exists or has been asserted or
threatened with respect to any Subsequent Receivable. The operation of the terms
of any Subsequent Receivable or the exercise of any right thereunder will not
render such Subsequent Receivable unenforceable in whole or in part or subject
to any such right of rescission, setoff, counterclaim or defense.

             (19) NO LIENS. As of the Subsequent Transfer Date, there are
no liens or claims existing or which have been filed for work, labor, storage,
materials or taxes relating to a Financed Vehicle that shall be liens prior to,
or equal or coordinate with, the security interest in the Financed Vehicle
granted by the Subsequent Receivable.

             (20) NO DEFAULT; REPOSSESSION. Except for payment
delinquencies continuing for a period of not more than twenty-nine days
(calculated on the basis of a 360-day year of twelve 30-day months), as of the
Subsequent Cutoff Date, no default, breach, violation or event permitting
acceleration under the terms of any Subsequent Receivable has occurred and not
been cured; and no continuing condition that with notice or the lapse of time
would constitute a default, breach, violation, or event permitting acceleration
under the terms of any Subsequent Receivable has arisen; and LBAC shall not
waive and has not waived any of the foregoing; and no Financed Vehicle shall
have been repossessed as of the Subsequent Cutoff Date.

             (21) INSURANCE; OTHER. (A) Each Obligor has obtained insurance
covering the Financed Vehicle as of the execution of the Subsequent Receivable
insuring against loss and damage due to fire, theft, transportation, collision
and other risks generally covered by comprehensive and collision coverage which
is in an amount at least equal to the lesser of (x) its maximum insurable value
or (y) the principal amount due from the Obligor under the related Subsequent
Receivable and names LBAC and its successors and assigns as loss payee and each
Subsequent Receivable requires the Obligor to obtain and maintain such insurance
naming LBAC and its successors and assigns as an additional insured, (B) each
Subsequent Receivable that finances the cost of premiums for credit life and
credit accident or health insurance is covered by an insurance policy and
certificate of insurance naming LBAC as policyholder (creditor) under each such
insurance policy and certificate of insurance and (C) as to each Subsequent
Receivable that finances the cost of an extended service contract, the
respective Financed Vehicle which secures the Subsequent Receivable is covered
by an extended service contract.

             (22) TITLE. It is the intention of LBAC that the transfer and
assignment of the Subsequent Receivables contemplated in the Purchase Agreement
constitute a sale of the Subsequent Receivables from LBAC to the Transferor and
that the beneficial interest in and title to such Subsequent Receivables not be
part of the debtor's estate in the event of the filing of a

                                     H-7
<Page>

bankruptcy petition by or against LBAC under any bankruptcy law. No Subsequent
Receivable has been sold, transferred, assigned, or pledged by LBAC to any
Person other than the Transferor or by the Transferor to any Person other than
the Trust except with respect to any such pledge that has been released on or
prior to the Subsequent Transfer Date. Immediately prior to the transfer and
assignment of the Subsequent Receivables contemplated in the Purchase Agreement,
LBAC had good and marketable title to each Subsequent Receivable, and was the
sole owner thereof, free and clear of all Liens, claims, encumbrances, security
interests, and rights of others and, immediately upon the transfer thereof, the
Transferor shall have good and marketable title to each such Subsequent
Receivable, and will be the sole owner thereof, free and clear of all Liens,
encumbrances, security interests, and rights of others other than the Lien of
the Indenture, and each such transfer has been perfected under the UCC.
Immediately prior to the transfer and assignment by the Transferor to the Trust
contemplated by this Agreement and the Sale and Servicing Agreement, the
Transferor shall have good and marketable title to each Subsequent Receivable,
and shall be the sole owner thereof, free and clear of all Liens, claims,
encumbrances, security interests, and rights of others other than the Lien of
the Indenture and, immediately upon the transfer thereof pursuant to this
Agreement and the Sale and Servicing Agreement, the Trust shall have good and
marketable title to each such Subsequent Receivable, and will be the sole owner
thereof, free and clear of all Liens, encumbrances, security interests and
rights of others other than the Lien of the Indenture, and each such transfer
has been perfected under the UCC. Without limiting the generality of the
foregoing, no Dealer has any right, title or interest in respect of any
Subsequent Receivable. Neither the Transferor nor LBAC has taken any action to
convey any right to any Person that would result in such Person having a right
to payments received under any insurance policies related to the Subsequent
Receivables or the Financed Vehicles or the related Dealer Agreements or to
payments due under such Subsequent Receivables.

             (23) LAWFUL ASSIGNMENT. No Subsequent Receivable has been
originated in, or is subject to the laws of, any jurisdiction under which the
sale, transfer, and assignment of such Subsequent Receivable under the Purchase
Agreement, this Agreement or the Sale and Servicing Agreement shall be unlawful,
void or voidable. LBAC has not entered into any agreement with any account
debtor that prohibits, restricts or conditions the assignment of any portion of
the Subsequent Receivables.

             (24) ALL FILINGS MADE. All filings (including, without
limitation, UCC filings) necessary in any jurisdiction to give the Indenture
Trustee a first priority perfected ownership interest in the Subsequent
Receivables and the proceeds thereof and the other Transferred Property (other
than the Financed Vehicles) have been made.

             (25) CHATTEL PAPER. Each Subsequent Receivable constitutes
"chattel paper" under the UCC.

             (26) VALID AND BINDING OBLIGATION OF OBLIGOR. Each Subsequent
Receivable is the legal, valid and binding obligation of the Obligor thereunder
and is enforceable in accordance with its terms, except only as such enforcement
may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights generally, and all parties to such contract had
full legal capacity to execute and deliver such contract and all other documents
related thereto and to grant the security interest purported to be granted
thereby.

                                      H-8
<Page>

             (27) TAX LIENS. As of the Subsequent Transfer Date, there is
no lien against the related Financed Vehicle for delinquent taxes.

             (28) TITLE DOCUMENTS. (A) If a Subsequent Receivable was
originated in a State in which notation of security interest on the title
document of the related Financed Vehicle is required or permitted to perfect
such security interest, the title document for such Subsequent Receivable shows,
or if a new or replacement title document is being applied for with respect to
such Financed Vehicle, the title document will be received within 150 days
following the Subsequent Transfer Date and will show, LBAC named as the secured
party under the related Subsequent Receivable as the holder of a first priority
security interest in such Financed Vehicle and (B) if the Subsequent Receivable
was originated in a State in which the filing of a financing statement under the
UCC is required to perfect a security interest in motor vehicles, such filings
or recordings have been duly made and show LBAC named as the original secured
party under the related Subsequent Receivable, and in either case, the Trust has
the same rights as such secured party has or would have (if such secured party
were still the owner of the Subsequent Receivable) against all parties claiming
an interest in such Financed Vehicle. With respect to each Subsequent Receivable
for which the relevant Dealer is temporarily unable to furnish either an
original Lien Certificate or satisfactory evidence that the appropriate lien has
been recorded on the related certificate of title or documentation has been
submitted to the appropriate state motor vehicle authority to record such lien
on such certificate of title, LBAC has received the related Dealer Title
Guaranty.

             (29) CASUALTY. As of the Subsequent Cutoff Date, no Financed
Vehicle related to a Subsequent Receivable has suffered a Casualty.

             (30) OBLIGATION TO DEALERS OR OTHERS. The Transferor and its
assignees will assume no obligation to Dealers or other originators or holders
of the Subsequent Receivables (including, but not limited to under dealer
reserves) as a result of its purchase of the Subsequent Receivables.

             (31) FULL AMOUNT FINANCED ADVANCED. The full Amount Financed
of each Subsequent Receivable has been advanced to or on behalf of each Obligor,
and there are no requirements for future advances thereunder. The Obligor with
respect to the Subsequent Receivable does not have any option under the
Subsequent Receivable to borrow from any person additional funds secured by the
Financed Vehicle.

             (32) NO IMPAIRMENT. Neither LBAC nor the Transferor has done
anything to convey any right to any Person that would result in such Person
having a right to payments due under the Subsequent Receivables or otherwise to
impair the rights of the Trust, the Noteholders or the Note Insurer in any
Subsequent Receivable or the proceeds thereof.

             (33) SUBSEQUENT RECEIVABLES NOT ASSUMABLE. No Subsequent
Receivable is assumable by another Person in a manner which would release the
Obligor thereof from such Obligor's obligations to the Transferor or LBAC with
respect to such Subsequent Receivable.

             (34) SERVICING. The servicing of each Subsequent Receivable and
the collesction practices relating thereto have been lawful and in accordance
with the standards set

                                      H-9
<Page>

forth in the Sale and Servicing Agreement; other than LBAC and any Back-up
Servicer arrangement that has been entered into, no other person has the right
to service any Subsequent Receivable.

             (35) ILLINOIS SUBSEQUENT RECEIVABLES. (a) LBAC does not own a
substantial interest in the business of a Dealer within the meaning of Illinois
Sales Finance Agency Act Rules and Regulations, Section 160.230(l) and (b) with
respect to each Subsequent Receivable originated in the State of Illinois, (i)
the printed or typed portion of the related Form of Subsequent Receivable
complies with the requirements of 815 ILCS 375/3(b) and (ii) LBAC has not, and
for so long as such Subsequent Receivable is outstanding shall not, place or
cause to be placed on the related Financed Vehicle any collateral protection
insurance in violation of 815 ILCS 180/10.

             (36) CALIFORNIA SUBSEQUENT RECEIVABLES. Each Subsequent
Receivable originated in the State of California has been, and at all times
during the term of the Sale and Servicing Agreement will be, serviced by the
Servicer in compliance with Cal. Civil Codess.2981, et seq.

SECTION 5.   CONDITIONS PRECEDENT. The obligation of the Trust to acquire the
Subsequent Receivables hereunder is subject to the satisfaction, on or prior to
the Subsequent Transfer Date, of the following conditions precedent:

             (a) REPRESENTATIONS AND WARRANTIES. (i) Each of the
         representations and warranties made by LBAC in Section 3.2 of the
         Purchase Agreement and Section 4 of this Agreement and (ii) each of the
         representations and warranties made by the Transferor in Section 3.1 of
         the Sale and Servicing Agreement and Section 3.1 of the Purchase
         Agreement, shall be true and correct as of the date of this Agreement
         and as of the Subsequent Transfer Date.

             (b) SALE AND SERVICING AGREEMENT CONDITIONS. Each of the
         conditions set forth in Section 2.2(b) to the Sale and Servicing
         Agreement shall have been satisfied.

             (c) PURCHASE AGREEMENT CONDITIONS. LBAC shall have complied
         with the requirements of Section 4.1 of the Purchase Agreement and
         shall have delivered all documents required to be delivered pursuant to
         Section 5.5 of the Purchase Agreement.

             (d) SECURITY INTEREST PERFECTION. In connection with the
         conveyance contemplated by this Agreement, the Transferor agrees to
         record and file, at its own expense, a financing statement with respect
         to the Subsequent Receivables now existing and hereafter created for
         the sale of chattel paper (as defined in the UCC as in effect in the
         State of New Jersey) meeting the requirements of applicable state law
         in such manner as is sufficient to perfect the sale and assignment of
         such Subsequent Receivables to the Trust, and the proceeds thereof (and
         any continuation statements as are required by applicable state law),
         and to deliver a file-stamped copy of each such financing statement (or
         continuation statement) or other evidence of such filings (which may,
         for purposes of this Section, consist of telephone confirmation of such
         filing with the file stamped copy

                                      H-10
<Page>

         of each such filing to be provided to the Trust Collateral Agent in due
         course), as soon as is practicable after the Transferor's receipt
         thereof.

                  In connection with such conveyance, the Transferor further
         agrees, at its own expense, on or prior to the Subsequent Transfer Date
         (i) to annotate and indicate in its computer files that the Subsequent
         Receivables have been transferred to the Trust pursuant to the Sale and
         Servicing Agreement and this Agreement and (ii) to deliver to the Trust
         Collateral Agent a computer file printed or microfiche list containing
         a true and complete list of all such Subsequent Receivables, identified
         by account number and by the Principal Balance of each Subsequent
         Receivable as of the Subsequent Cutoff Date.

                  (e) ADDITIONAL INFORMATION. The Transferor shall have
         delivered or caused to be delivered to the Trust Collateral Agent on
         behalf of the Noteholders and the Note Insurer such information as was
         reasonably requested by the Trust on behalf of the Noteholders or the
         Note Insurer to satisfy itself as to (i) the accuracy of the
         representations and warranties set forth in Section 4 of this Agreement
         and Section 7.1 of the Sale and Servicing Agreement and (ii) the
         satisfaction of the conditions set forth in this Section.

                  (f) DEPOSITS TO ACCOUNTS. On or prior to the Subsequent
         Transfer Date, the Transferor shall deposit or cause to be deposited:

                           (1) the Subsequent Spread Account Deposit into the
                  Spread Account; and

                           (2) the Class B Reserve Account Subsequent Deposit
                  into the Class B Reserve Account; and

                           (2) $__________, which represents all monies received
                  pursuant to Section 3(1) (other than Liquidation Proceeds and
                  Recoveries), into the Collection Account.

SECTION 6. RATIFICATION OF AGREEMENT. As supplemented by this Agreement, the
Sale and Servicing Agreement is in all respects ratified and confirmed and the
Sale and Servicing Agreement as so supplemented by this Agreement shall be read,
taken and construed as one and the same instrument.

SECTION 7. THIRD PARTY BENEFICIARIES. Except as otherwise specifically provided
herein with respect to Noteholders, the parties to this Agreement hereby
manifest their intent that no third party other than the Note Insurer shall be
deemed a third party beneficiary of this Agreement, and specifically that the
Obligors are not third party beneficiaries of this Agreement. The Note Insurer
and its successors and assigns shall be a third-party beneficiary to the
provisions of this Agreement, and shall be entitled to rely upon and directly
enforce the provisions of this Agreement so long as no Note Insurer Default
shall have occurred and be continuing. Except as expressly stated otherwise
herein or in the Basic Documents, any right of the Note Insurer to direct,
appoint, consent to, approve of, or take any action under this Agreement, shall
be a right exercised by the Note Insurer in its sole and absolute discretion.
The Note Insurer may disclaim any of its rights and powers under this Agreement
(but not its duties and obligations under the Policy) upon delivery of a written
notice to the Trust Collateral Agent.

                                      H-11
<Page>

SECTION 8. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (EXCEPT WITH REGARD TO THE
UCC).

SECTION 9. AMENDMENTS. This Agreement may be amended from time to time by a
written amendment duly executed and delivered by the Issuer, LBAC, the
Transferor and the Trust Collateral Agent with the prior written consent of the
Note Insurer.

                                      H-12
<Page>

             IN WITNESS WHEREOF, the Issuer, LBAC, the Transferor and the
Trust Collateral Agent have caused this Agreement to be duly executed and
delivered by their respective duly authorized officers as of the day and the
year first above written.

                      LONG BEACH ACCEPTANCE AUTO RECEIVABLES
                        TRUST 1999-2, as Issuer

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

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

                      LONG BEACH ACCEPTANCE CORP.

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

                      LONG BEACH ACCEPTANCE
                      RECEIVABLES CORP.

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

                      THE CHASE MANHATTAN BANK, as Trust
                          Collateral Agent.

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

                                       H-13
<Page>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                                  Schedule A-1
<Page>

                                                                      SCHEDULE B

Location of Receivable Files

One Mack Centre Drive
Paramus, New Jersey 07652

Location of Legal Files

1111 Fannin
12th Floor
Houston, Texas 77002
Attention:     Loan Document
               Custody - Long Beach Acceptance
               Auto Receivables Trust 1999-2

                                 Schedule B-1
<Page>

                                                                      SCHEDULE C

                              Delivery Requirements

The Trust Collateral Agent shall have sole control over each such investment and
the income thereon, and any certificate or other instrument evidencing any such
investment, if any shall, except for clearing corporation securities, be
delivered directly to the Trust Collateral Agent or its agent, together with
each document of transfer, if any, necessary to transfer title to such
investment to the Trust Collateral Agent in a manner that complies with this
Agreement and the requirements of the definition of Eligible Investments.

                                 Schedule C-1

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