Document:

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                                                                   EXHIBIT 10.75

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement") is effective as of July 18,
2003 (the "Effective Date"), by and between FIDELITY NATIONAL FINANCIAL, INC., a
Delaware corporation (the "Company"), and PETER T. SADOWSKI (the "Employee"). In
consideration of the mutual covenants and agreements set forth herein, the
parties agree as follows:

         1. Employment and Duties. Subject to the terms and conditions of this
Agreement, the Company employs the Employee to serve in an executive and
managerial capacity as Executive Vice President and General Counsel and the
Employee accepts such employment and agrees to perform such reasonable
responsibilities and duties commensurate with the aforesaid position as set
forth in the Articles of Incorporation and the Bylaws of the Company and as
directed by the Company's Chief Executive Officer and/or President.

         2. Term. The term of this Agreement shall commence on the Effective
Date and shall continue for a period of three (3) years ending July 17, 2006,
subject to prior termination as set forth in Section 7, below (the "Term"). The
Term may be extended at any time upon mutual agreement of the parties.

         3. Salary. During the Term, the Company shall pay the Employee a
minimum base annual salary, before deducting all applicable withholdings, of
$350,000 per year, payable at the times and in the manner dictated by the
Company's standard payroll policies. Such minimum base annual salary may be
periodically reviewed and increased (but not decreased) at the discretion of the
Compensation Committee of the Board of Directors to reflect, among other
matters, cost of living increases and performance results.

         4. Other Compensation and Fringe Benefits. In addition to any executive
bonus, pension, deferred compensation and stock options plans which the Company
may from time to time make available to the Employee upon mutual agreement, the
Employee shall be entitled to the following:

         (a)      The standard Company benefits enjoyed by the Company's other
                  top executives;

         (b)      Payment by the Company of the Employee's initiation and
                  membership dues in a social and/or recreational club as deemed
                  necessary and appropriate by the Employee to maintain various
                  business relationships on behalf of the Company; provided,
                  however, that the Company shall not be obligated to pay for
                  any of Employee's personal purchases and expenses at such
                  club;

         (c)      Provision by the Company during the Term and any extensions
                  thereof to the Employee and his dependents of medical and
                  other insurance coverage under the Company's Executive Medical
                  Plan;

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         (d)      Provision by the Company of supplemental disability insurance
                  sufficient to provide two-thirds of the Employee's
                  pre-disability minimum base annual salary;

         (e)      An annual bonus for each calendar year included in this
                  Agreement calculated pursuant to a formula set by the
                  Compensation Committee of the Company's Board of Directors.
                  For the year 2003, the bonus formula is set forth on Exhibit A
                  attached hereto. The annual bonus shall be paid no later than
                  March 15th of the following year and is fully vested at the
                  end of each year in the event of a non-renewal of this
                  Agreement by the Company. Subject to Section 7 below, the
                  annual bonus shall be pro-rated for any partial employment
                  year.

         The Company shall deduct from all compensation payable under this
         Agreement to the Employee any taxes or withholdings the Company is
         required to deduct pursuant to state and federal laws or by mutual
         agreement between the parties.

         5. Vacation. For and during each year of the Term and any extensions
thereof, the Employee shall be entitled to reasonable paid vacation periods
consistent with his positions with the Company and in accordance with the
Company's standard policies or as the Board of Directors may approve. In
addition, the Employee shall be entitled to such holidays consistent with the
Company's standard policies or as the Company's Board of Directors may approve.

         6. Expense Reimbursement. In addition to the compensation and benefits
provided herein, the Company shall, upon receipt of appropriate documentation,
reimburse the Employee each month for his reasonable travel, lodging,
entertainment, promotion and other ordinary and necessary business expenses.

         7. Termination.

         (a)      For Cause. The Company may terminate this Agreement
                  immediately for cause upon written notice to the Employee, in
                  which event the Company shall be obligated to pay the Employee
                  that portion of the minimum base annual salary due him through
                  the date of termination. Cause shall be limited to (i) the
                  failure to perform duties consistent with a commercially
                  reasonable standard of care; (ii) the willful neglect of
                  duties; (iii) criminal or other illegal activities; or (iv) a
                  material breach of this Agreement.

         (b)      Without Cause. Either party may terminate this Agreement
                  immediately without cause by giving written notice to the
                  other.

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                  (i)      If the Company terminates under this Section 7(b),
                           then it shall pay to the Employee an amount equal to
                           the product of (i) the Employee's minimum annual base
                           salary in effect as of the date of termination, plus
                           the greater of either (x) the highest bonus paid for
                           any year during which this Agreement was in effect,
                           or (y) Employee's minimum base salary in effect as of
                           the date of termination ("Base Year Bonus"), times
                           (ii) the number of years (including partial years)
                           remaining in the Term or the number 2 (two),
                           whichever is greater. The Company shall make such
                           payment in a lump sum on or before the fifth day
                           following the date of termination, or as otherwise
                           directed by the Employee. In addition, all options
                           granted to the Employee which had not vested as of
                           the date of termination hereunder shall vest
                           immediately and the Company shall maintain in full
                           force and effect for the continued benefit of the
                           Employee for the number of years (including partial
                           years) remaining in the Term, all employee benefit
                           plans and programs in which the Employee was entitled
                           to participate immediately prior to the date of
                           termination, provided that the Employee's continued
                           participation is possible under the general terms and
                           provisions of such plans and programs. In the event
                           that the Employee's participation in any such plan or
                           program is prohibited, the Company shall, at its
                           expense, arrange to provide the Employee with
                           benefits substantially similar to those which the
                           Employee would otherwise have been entitled to
                           receive under such plans and programs for which his
                           continued participation is prohibited.

                  (ii)     If Employee terminates under this Section 7(b), he
                           will only be entitled to his minimum annual base
                           salary due through the date of termination.

         (c)      Disability. If the Employee fails to perform his duties
                  hereunder on account of illness or other incapacity for a
                  period of nine consecutive months, then the Company shall have
                  the right upon written notice to the Employee to terminate
                  this Agreement without further obligation by paying the
                  Employee the minimum base annual salary, without offset, for
                  the remainder of the Term in a lump sum or as otherwise
                  directed by the Employee.

         (d)      Death. If the Employee dies during the Term, then this
                  Agreement shall terminate immediately and the Employee's legal
                  representatives shall be entitled to receive the minimum
                  annual base salary for the remainder of the Term in a lump sum
                  or as otherwise directed by the Employee's legal
                  representative.

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         (e)      Mitigation. The Employee shall not be required to mitigate the
                  amount of any payment provided for in this Section 7 by
                  seeking other employment or otherwise, nor shall any
                  compensation or other payments received by the Employee after
                  this date of termination reduce any payments due under this
                  Section 7.

         (f)      Effect of Termination. Termination for any reason or for no
                  reason shall not constitute a waiver of the Company's rights
                  under this Agreement nor a release of the Employee from any
                  obligation hereunder except his obligation to perform his
                  day-to-day duties as an employee.

         8.       Severance Payment.

         (a)      The Employee may terminate his employment hereunder for "Good
                  Reason" which for purposes of this Agreement shall mean a
                  "change in control of the Company". A "change in control of
                  the Company", for purposes of this Agreement, shall be deemed
                  to have occurred if (i) there shall be consummated (x) any
                  consolidation or merger of the Company other than a
                  consolidation or merger of the Company in which the holders of
                  the Company's Common Stock immediately prior to the merger own
                  more than 50% of the voting securities of the surviving
                  corporation immediately after the merger, or (y) any sale,
                  lease exchange or other transfer (in one transaction or a
                  series of related transactions) of all, or substantially all,
                  of the assets of the Company, or (ii) the stockholders of the
                  Company approve any plan or proposal for the liquidation or
                  dissolution of the Company, or (iii) any "person" (such as
                  that term is used in Sections 13(d) and 14(d) of the
                  Securities Exchange Act of 1934 (the "Exchange Act")), other
                  than the Company or any "person" who, on the date hereof, is a
                  director or officer of the Company, is or becomes the
                  "beneficial owner" (as defined in Rule 13d-3 under the
                  Exchange Act), of securities of the Company representing 30%
                  or more of the combined voting power of the Company's then
                  outstanding securities, or (iv) during any period of two (2)
                  consecutive years during the Term or any extensions thereof,
                  individuals, who, at the beginning of such period, constitute
                  the Board of Directors, cease for any reason to constitute at
                  least a majority thereof, unless the election of each director
                  who was not a director at the beginning of such period has
                  been approved in advance by directors representing at least
                  two-thirds of the directors then in office who were directors
                  at the beginning of the period. The Employee may only
                  terminate this Agreement due to a change in control of the
                  Company during the period commencing 60 days and expiring 365
                  days after such change in control.

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         (b)      If the Employee terminates his employment for Good Reason, or,
                  if after a change in control of the Company, the Company shall
                  terminate the Employee's employment in breach of the Agreement
                  or pursuant to Section 7(b), then:

                  (i)      The Company shall pay the Employee his minimum base
                           annual salary due him through the date of
                           termination;

                  (ii)     In lieu of any further salary and bonus payments or
                           other payments due to the Employee for periods
                           subsequent to the date of termination, the Company
                           shall pay, as severance to the Employee, an amount
                           equal to the product of (A) the Employee's minimum
                           base annual salary in effect as of the date of
                           termination plus the Base Year Bonus, multiplied by
                           (B) the number of years (including partial years)
                           remaining in the Term or the number two (2),
                           whichever is greater;

                  (iii)    All options granted to the Employee which had not
                           vested as of the date of termination hereunder shall
                           vest immediately; and

                  (iv)     The Company shall maintain in full force and effect,
                           for the continued benefit of the Employee for the
                           number of years (including partial years) remaining
                           in the Term, all employee benefit plans and programs
                           in which the Employee was entitled to participate
                           immediately prior to the date of termination,
                           provided that the Employee's continued participation
                           is possible under the general terms and provisions of
                           such plans and programs. In the event that the
                           Employee's participation in any such plan or program
                           is prohibited, the Company shall, at it's expense,
                           arrange to provide the Employee with benefits
                           substantially similar to those which the Employee
                           would otherwise have been entitled to receive under
                           such plans and programs from which his continued
                           participation is prohibited.

         (c)      The Employee shall not be required to mitigate the amount of
                  any payment provided for in this Section 8 by seeking other
                  employment or otherwise, nor shall any compensation or other
                  payments received by the Employee after the date of
                  termination reduce any payments due under this Section 8.

         (d)      To the extent that any or all of the payments and benefits
                  provided for in this Agreement and pursuant to any other
                  agreements with Executive constitute "parachute payments"
                  within the meaning of Section 280G of the Internal Revenue
                  Code (the "Code") and, but for this Section 8(d), would be
                  subject to the excise tax imposed by

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                  Section 4999 of the Code, the aggregate amount of the payments
                  and benefits under this Agreement shall be reduced such that
                  the present value (as determined under the Code and applicable
                  regulations) of all payments constituting "parachute
                  payments", is equal to 2.99 times the Executive's "base
                  amount" (as defined in the Code).

         9. Non-delegation of Employee's Rights. The obligations, rights and
benefits of the Employee hereunder are personal and may not be delegated,
assigned or transferred in any manner whatsoever, nor are such obligations,
rights or benefits subject to involuntary alienation, assignment or transfer.

         10. Confidential Information. The Employee acknowledges that in his
capacity as an employee of the Company he will occupy a position of trust and
confidence and he further acknowledges that he will have access to and learn
substantial information about the Company and its operations that is
confidential or not generally known in the industry including, without
limitation, information that relates to purchasing, sales, customers, marketing,
and the Company's financial position and financing arrangements. The Employee
agrees that all such information is proprietary or confidential, or constitutes
trade secrets and is the sole property of the Company. The Employee will keep
confidential, and will not reproduce, copy or disclose to any other person or
firm, any such information or documents or information relating to the Company's
methods, processes, customers, accounts, analyses, systems, charts, programs,
procedures, correspondence or records, or any other documents used or owned by
the Company, nor will the Employee advise, discuss with or in any way assist any
other person, firm or entity in obtaining or learning about any of the items
described in this Section 10. Accordingly, the Employee agrees that during the
Term and at all times thereafter he will not disclose, or permit or encourage
anyone else to disclose, any such information nor will he utilize any such
information, either alone or with others, outside the scope of his duties and
responsibilities with the Company.

         11. Non-Competition During Employment Term. The Employee agrees that,
during the Term and any extensions thereof, he will devote substantially all his
business time and effort, and give undivided loyalty, to the Company. He will
not engage in any way whatsoever, directly or indirectly, in any business that
is competitive with the Company or its affiliates, nor solicit, or in any other
manner work for or assist any business which is competitive with the Company or
its affiliates. In addition, during the Term and any extensions thereof, the
Employee will undertake no planning for or organization of any business activity
competitive with the work he performs as an employee of the Company, and the
Employee will not combine or conspire with any other employee of the Company or
any other person for the purpose of organizing any such competitive business
activity.

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         12. Non-Competition After Employment Term. The parties acknowledge that
as an executive officer of the Company the Employee will acquire substantial
knowledge and information concerning the business of the Company as a result of
his employment. The parties further acknowledge that the scope of business in
which the Company is engaged as of the Effective Date is national and very
competitive and one in which few companies can successfully compete. Competition
by an executive officer such as the Employee in that business after this
Agreement is terminated would severely injure the Company. Accordingly, for a
period of one year after this Agreement is terminated or the Employee leaves the
employment of the Company for any reason whatsoever, except as otherwise stated
hereinbelow, the Employee agrees (i) not to become any employee, consultant,
advisor, principal, partner or substantial shareholder of any firm or business
that in any way competes with the Company in any of its presently-existing or
then-existing products and markets; and (ii) not to solicit any person or
business that was at the time of such termination and remains a customer or
prospective customer, or any employee of the Company. Notwithstanding any of the
foregoing provisions to the contrary, the Employee shall not be subject to the
restrictions set forth in this Section 12 under the following circumstances:

         (a)      If the Employee's employment with the Company is terminated by
                  the Company without cause;

         (b)      If the Employee's employment with the Company is terminated as
                  a result of the Company's unwillingness to extend the Term of
                  this Agreement; or

         (c)      If the Employee leaves the employment of the Company for Good
                  Reason pursuant to Section 8, above.

         13. Return of Company Documents. Upon termination of this Agreement,
Employee shall return immediately to the Company all records and documents of or
pertaining to the Company and shall not make or retain any copy or extract of
any such record or document.

         14. Improvements and Inventions. Any and all improvements or inventions
which the Employee may make or participate in during the period of his
employment shall be the sole an exclusive property of the Company. The Employee
will, whenever requested by the Company, execute and deliver any and all
documents which the Company shall deem appropriate in order to apply for and
obtain patents for improvements or inventions or in order to assign and convey
to the Company the sole and exclusive right, title and interest in and to such
improvements, inventions, patents or applications.

         15. Actions. The parties agree and acknowledge that the rights conveyed
by this Agreement are of a unique and special nature and that the Company will
not have an adequate remedy at law in the event of a failure by the

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Employee to abide by its terms and conditions nor will money damages adequately
compensate for such injury. It is therefore agreed between the parties that, in
the vent of a breach by the Employee of any of his obligations contained in this
Agreement, the Company shall have the right, among other rights, to damages
sustained thereby and to obtain an injunction or decree of specific performance
from any court of competent jurisdiction to restrain or compel the Employee to
perform as agreed herein. The Employee agrees that this Section 15 shall survive
the termination of his employment and he shall be bound by its terms at all
times subsequent to the termination of his employment for so long a period as
the Company continues to conduct the same business or businesses as conducted
during the Term or any extensions thereof. Nothing herein contained shall in any
way limit or exclude any other right granted by law or equity to the Company.

         16. Amendment. This Agreement contains, and its term constitute, the
entire agreement of the parties, and it may be amended only by a written
document signed by both parties to this Agreement. This Agreement supercedes and
replaces any prior agreements or understandings between the parties with respect
to the subject matter hereof.

         17. Governing Law. Florida law shall govern the construction and
enforcement of this Agreement and the parties agree that any litigation
pertaining to this Agreement shall be adjudicated in courts located in
Jacksonville, Florida.

         18. Attorneys' Fees. If any party finds it necessary to employ legal
counsel or to bring an action at law or other proceedings against the other
party to enforce any of the terms hereof, the party prevailing in any such
action or other proceeding shall be paid by the other party its reasonable
attorneys' fees or other court costs, all as determined by the court and not a
jury.

         19. Severability. If any section, subsection or provision hereof is
found for any reason whatsoever to be invalid or inoperative, that section,
subsection or provision shall be deemed severable and shall not affect the force
and validity of any other provision of this Agreement. If any covenant herein is
determined by a court to be overly broad thereby making the covenant
unenforceable, the parties agree and it is their desire that such court shall
substitute a reasonable judicially enforceable limitation in place of the
offensive part of the covenant and that as so modified the covenant shall be
fully enforceable as if set forth herein by the parties themselves in the
modified form. The covenants of the Employee in this Agreement shall each be
construed as an agreement independent of any other provision in this Agreement,
and the existence of any claim or cause of action of the Employee against the
Company, whether predicated on this Agreement or otherwise, shall not constitute
a defense to the enforcement by the Company of the covenants of this Agreement.

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         20. Notices. Any notice, request or instruction to be given hereunder
shall be in writing and shall be deemed given when personally delivered or three
(3) days after being sent by United States certified mail, postage prepaid, with
return receipt requested, to the parties at their respective addresses set forth
below:

                                    To the Company:

                                            Fidelity National Financial, Inc.
                                            4050 Calle Real
                                            Santa Barbara, CA  93105
                                            Attention:  William P. Foley, II
                                                        Chief Executive Officer

                                    To the Employee:

                                            Peter T. Sadowski
                                            1014 Via Los Padres
                                            Santa Barbara, CA 93111

         21. Waiver of Breach. The waiver by any party of the provisions of this
Agreement shall not operate or be construed as a waiver of any prior or
subsequent breach by the other party.

         IN WITNESS WHEREOF the parties have executed this Agreement to be
effective as of the date first set forth above.

                                            FIDELITY NATIONAL FINANCIAL, INC.

                                            By: /s/ WILLIAM P. FOLEY, II
                                                --------------------------------

                                            Its: Chief Executive Officer
                                                --------------------------------

                                            PETER T. SADOWSKI

                                            /s/ PETER T. SADOWSKI
                                            ------------------------------------

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                                                                    EXHIBIT 10.4

                               SECURITY AGREEMENT

      THIS SECURITY AGREEMENT is made and entered into as of the 7th day of
March, 2003 (this "Agreement"), by and between WFS FUNDING, INC, a California
corporation (the "Debtor") and WESTERN FINANCIAL BANK, a federally chartered
institution ("Secured Party"), with reference to the following:

      A. Debtor and Secured Party have entered into that certain Amended
Revolving Line of Credit Agreement dated as of June 1, 2002, as subsequently
amended, (the "Credit Agreement"), pursuant to which the Secured Party has
established a revolving line of credit in favor of the Debtor. All capitalized
terms used herein and not otherwise defined shall have the meanings set forth in
the Credit Agreement.

      B. The Debtor and Secured Party are entering into this Agreement to
collateralize the Debtor's obligations under the Credit Agreement.

      NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

      1. GRANT OF SECURITY INTEREST

            As security for the full and timely payment and performance of the
"Secured Obligations" (as defined herein), the Debtor hereby grants to the
Secured Party a continuing security interest in and lien upon any and all of the
Debtor's right, title and interest (whether presently existing or hereafter
arising) in and to the "Collateral". As used herein, the term "Collateral" shall
mean and include the following: (i) the Debtor's retained interest in
securitized asset; and (ii) all proceeds of any of the foregoing; in each case,
whether presently existing or owned or hereafter arising or acquired.

      2. SECURED OBLIGATIONS

            As used herein, the term "Secured Obligations" shall mean and
      include each and all of the following:

            2.1 The full and timely payment by the Debtor of the Obligations;
      and

            2.2 The full and timely performance by the Debtor of all of the
      Debtor's obligations, covenants, representations and warranties owing
      and/or made to the Secured Party under this Agreement.

      3. COVENANTS OF DEBTOR

            Until the full payment of the Obligations and until such time as the
Secured Party has no further obligation to lend funds to the Debtor under the
Credit Agreement, the Debtor hereby covenants to the Secured Party as follows:

            3.1 SECURITY INTEREST. The Debtor shall at all times maintain or
      cause to be maintained in favor of the Secured Party the security interest
      granted hereunder as a valid security interest in the Collateral subject
      only to such Encumbrances as may be consented to by the Secured Party in
      its sole discretion.
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            3.2 DEFENSE OF COLLATERAL. The Debtor shall diligently and timely
      defend the Collateral and the Secured Party's rights therein against all
      Encumbrances (other than such Encumbrances as may be consented to by the
      Secured Party in its sole discretion);

            3.3 DISCHARGE OF LIABILITIES. The Debtor shall at all times timely
      pay and discharge all costs, expenses, obligations and liabilities of the
      Debtor except (i) any such items being diligently contested in good faith
      for which appropriate reserves and provisions as required by GAAP have
      been made, and (ii) any such items which if not timely paid and discharged
      will not result in any material item or portion of the Collateral being in
      jeopardy of seizure, levy or forfeiture;

            3.4 FURTHER ASSURANCES. Upon the request of the Secured Party, the
      Debtor shall duly execute and deliver at its sole expense, or cause to be
      executed and delivered at its sole expense, such further documents and
      take such further actions as may be necessary or desirable, in the
      reasonable discretion of the Secured Party, to maintain and protect the
      Secured Party's security interest granted hereunder in and to all of the
      Collateral; and

            3.5 COLLATERALIZATION OF PRINCIPAL. Without the prior consent of the
      Secured Party, the Debtor shall cause the fair market value of the
      Collateral to not be less than the outstanding Principal.

      4. REPRESENTATIONS AND WARRANTIES OF DEBTOR

            4.1 REPRESENTATIONS AND WARRANTIES. The Debtor hereby represents and
      warrants to the Secured Party as follows:

            4.1.1 BINDING AGREEMENT. This Agreement, when executed and
      delivered, will constitute the valid and legally binding obligation of the
      Debtor and is enforceable in accordance with its terms;

            4.1.2 DUE AUTHORIZATION; NO CONFLICTS OR VIOLATIONS. The execution,
      delivery and performance of this Agreement, and the grant of the security
      interest contemplated herein, (i) has been duly authorized by all
      requisite corporate action of the Debtor and will not violate any
      provision of any law, any order of any court or other agency of the United
      States or of any state thereof; and (ii) will not violate any provision of
      the Articles of Incorporation or By-laws of the Debtor, or any provision
      of any material agreement or instrument to which the Debtor is a party or
      by which the Debtor or any of the Collateral may be bound, or be in
      conflict with, result in a breach of or constitute a default under, any
      such agreement or other instrument, or result in the creation or
      imposition of any Encumbrance upon the Collateral (other than Encumbrances
      approved by the Secured Party in its sole discretion) of any nature
      whatsoever;

            4.1.3 AUTHORIZATIONS. Any and all authorizations, approvals,
      registrations or filings from or with any governmental agency or any other
      person or entity, required for the execution, delivery or performance by
      the Debtor of this Agreement, have been obtained or made and are in full
      force and effect; and

            4.1.4 THE SECURITY INTEREST. This Agreement creates and grants a
      valid security interest in favor of the Secured Party in the Collateral.

                                        2
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            4.2 MAKING OF AND SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
      representations and warranties of the Debtor made herein shall survive the
      execution and delivery of this Agreement and the making of any Advance.

      5. EVENT OF DEFAULT

            As used herein the term "Event of Default" shall mean the occurrence
of any "Event of Default" (as defined in the Credit Agreement).

      6. REMEDIES UPON DEFAULT; LIMITATIONS ON SECURIED PARTY

            Upon the occurrence and during the continuation of any Event of
Default, Secured Party shall be entitled to exercise all of the rights,
remedies, powers and privileges of a secured party under the Commercial Code of
the State of California, and all other rights and remedies under any other
applicable laws including the right to realize upon and/or sell the Collateral
or any portion thereof in accordance with applicable law, provided however, the
Secured Party acknowledges that Debtor is expressly limited by Article 5,
Section C, of its Articles of Incorporation and has no corporate authority to
agree to or to incur any debt of any kind which is not rated by each Rating
Agency which has rated any outstanding debt of Debtor or of any trust of which
Debtor is an originator, unless: (a) that debt is fully subordinated to and by
its terms may be repaid only after any amounts then due and payable by Debtor or
any such trust have been paid; (b) that debt is nonrecourse against any assets
of the Debtor other than those assets specifically pledged to secure that debt;
and (c) that debt does not constitute a claim against the Debtor in the event
the assets specifically pledged to secure that debt are insufficient to pay that
debt. The Secured Party hereby acknowledges and agrees that any other provisions
of this Agreement notwithstanding, this Agreement is subject to and the rights
of the Secured Party with respect to the Collateral pledged hereunder are
limited by the provisions of Article 5, Section C, of the Articles of
Incorporation of Debtor.

      7. RIGHTS AND REMEDIES CUMULATIVE

            Subject to Section 6, no right or remedy conferred upon the Secured
Party herein or in any other agreements between the Debtor and the Secured Party
shall be exclusive of any other right or remedy contained herein or therein.
Such rights and remedies are cumulative and are not exclusive of any right or
remedy which the Secured Party may otherwise have.

      8. APPLICATION OF PROCEEDS AFTER AN EVENT OF DEFAULT

            Subject to Section 6, after the occurrence of an Event of Default,
all income from the Collateral and all proceeds from any sale of the Collateral
pursuant hereto shall be applied against the Secured Obligations in such order
as the Secured Party may elect in its sole discretion (and any amounts remaining
after such applications shall be remitted to the Debtor or as a court of
competent jurisdiction may otherwise direct); provided, however, that so long as
no Event of Default has occurred and is continuing, the Debtor shall be
permitted to receive and retain all income on and proceeds of the Collateral and
deal with the Collateral in such ways as it deems appropriate (including,
without limitation, demand, sue for, collect or receive, any money or property
at any time payable or receivable with respect to the Collateral, make any
compromise

                                        3
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or settlement deemed desirable with respect to any of the Collateral,
or extend the time of payment, or otherwise modify the terms of, or release, any
of the Collateral).

      9. TERMINATION OF SECURITY INTEREST

            9.1 TERMINATION IN ALL COLLATERAL. Upon the full payment of all of
Obligations, the Secured Party shall release its security interest in all of the
Collateral.

            9.2 FURTHER ASSURANCES. With respect to any release of the Secured
Party's security interest in the Collateral pursuant to this Section 9, the
Secured Party shall duly execute and deliver, or cause to be duly executed and
delivered to the Debtor, such agreements, documents and other instruments, and
do or cause to be done such further acts as may be necessary or proper to
terminate (or evidence the termination of) the Secured Party's security interest
in the Collateral or portion thereof, as the case may be.

      10. NOTICES

            All notices, requests, demands and other communications required or
permitted to be given hereunder shall be in writing and shall be given in
accordance with the notice provisions contained in the Credit Agreement.

      11. MISCELLANEOUS

            11.1 NO WAIVER; MODIFICATIONS. This Agreement may only be amended or
modified by a written instrument executed by all parties hereto and no waiver by
any party hereto will be effective unless in writing and then only to the extent
specifically stated.

            11.2 SECTION HEADLINES. Section headings are inserted for the sake
of convenience only and shall not affect the interpretation of any provision of
this Agreement.

            11.3 CHOICE OF LAW. That this Agreement shall be subject to,
construed and governed by, the laws of the State of California without giving
effects to such state's conflicts of law provisions. This Agreement may not be
assigned, pledged, hypothecated or otherwise encumbered by the Debtor. Subject
to the foregoing sentence, this Agreement shall inure to the benefit of the
Secured Party (and its successors and assigns) and the Debtor, and shall be
binding upon the successors and assigns of the parties hereto.

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

            11.5 ENTIRE AGREEMENT. This Agreement and the Credit Agreement set
forth the entire agreement and understanding of the parties hereto concerning
the subject matter of this Agreement and supersede all prior agreements,
arrangements and understandings regarding such

                                        4
<PAGE>
subject matter between the parties hereto, which agreements, arrangements and
understandings are merged herein.

            11.6 COSTS AND EXPENSES. Within five (5) business days of receipt of
a written request by the Secured Party, the Debtor shall promptly reimburse the
Secured Party for all costs and expenses (including reasonable attorneys' fees
and costs) incurred by or on behalf of the Secured Party in connection with the
enforcement of the rights and the protection of the interests of the Secured
Party in connection with this Agreement.

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date and year first set forth above.

                                           WFS FUNDING, INC

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

                                           Its:

                                           WESTERN FINANCIAL BANK

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

                                           Its:

                                        5

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