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                                                                   Exhibit 10.3



                           FRANKLIN AUTO TRUST 2001-2

                $55,000,000 2.10375% CLASS A-1 ASSET BACKED NOTES

                 $74,500,000 2.79% CLASS A-2 ASSET BACKED NOTES

                 $91,000,000 3.77% CLASS A-3 ASSET BACKED NOTES

                 $79,500,000 4.55% CLASS A-4 ASSET BACKED NOTES


                            Franklin Receivables LLC
                                    (SELLER)

                             UNDERWRITING AGREEMENT
                             ----------------------

                                                              November 28, 2001
Salomon Smith Barney Inc.
390 Greenwich Street
New York, New York 10013

Ladies and Gentlemen:

        1. Introductory. Franklin Receivables LLC (the "Seller") has previously
           ------------
filed a registration statement with the Securities and Exchange Commission
relating to the issuance and sale from time to time of up to $800,000,000 of
asset backed notes and/or asset backed certificates and proposes to cause
FRANKLIN AUTO TRUST 2001-2 (the "Trust") to issue and sell to Salomon Smith
Barney Inc. (the "Underwriter") $55,000,000 principal amount of its 2.10375%
Class A-1 Asset Backed Notes (the "Class A-1 Notes"), $74,500,000 principal
amount of its 2.79% Class A-2 Asset Backed Notes (the "Class A-2 Notes"),
$91,000,000 principal amount of its 3.77% Class A-3 Asset Backed Notes (the
"Class A-3 Notes") and $79,500,000 principal amount of its 4.55% Class A-4 Asset
Backed Notes (the "Class A-4 Notes" and together with the Class A-1 Notes, the
Class A-2 Notes and the Class A-3 Notes, the "Notes"). The Trust will also issue
Certificates (the "Certificates" and together with the Notes, the "Securities")
which will be retained by the Seller. The assets of the Trust will include,
among other things, a pool of prime, non-prime and sub-prime motor vehicle
retail installment sale contracts (the "Receivables") secured by new and used
automobiles and light trucks financed thereby (the "Financed Vehicles"), and
certain monies received thereunder on or after December 1, 2001 (the "Cutoff
Date"), and the other property and the proceeds thereof to be conveyed to the
Trust pursuant to the Sale and Servicing Agreement to be dated as of December 1,
2001 (the "Sale and Servicing Agreement") among Franklin Auto Trust 2001-2 (the
"Trust"), the Seller, Franklin Capital Corporation ("Franklin Capital"), as
servicer (the "Servicer") and Franklin Resources, Inc. ("Franklin Resources").
Pursuant to the Sale and Servicing Agreement, the Seller will sell the
Receivables to the Trust and the Servicer will service the Receivables on behalf
of the Trust. In addition, pursuant to the Sale and Servicing Agreement, the
Servicer will agree to perform certain administrative tasks on behalf of the
Trust imposed on the Trust under the Indenture. The Notes will be issued
pursuant to the Indenture to be dated as of December 1,

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2001 (as amended and supplemented from time to time, the "Indenture"), between
the Trust and The Bank of New York (the "Trustee"). The Seller will form the
Trust pursuant to a Trust Agreement (the "Trust Agreement") to be dated as of
December 1, 2001 between the Seller and Bankers Trust (Delaware), as owner
trustee (the "Owner Trustee"). The Certificates, each representing a fractional
undivided interest in the Trust, will be issued pursuant to the Trust Agreement.

     The Receivables were originated or acquired by Franklin Capital. Franklin
Capital will sell the Receivables owned by it to the Seller pursuant to the
terms of the Purchase Agreement (the "Loan Purchase Agreement") dated as of
December 1, 2001 between the Seller and Franklin Capital.

     Capitalized terms used and not otherwise defined herein shall have the
meanings given them in the preliminary prospectus or, if not defined therein, as
defined in the Sale and Servicing Agreement. As used herein, the term "Basic
Documents" refers to the Sale and Servicing Agreement, Indenture, Trust
Agreement, Spread Account Agreement, Loan Purchase Agreement, the letter
agreement in the form of Exhibit A hereto (the "Letter Agreement"), Insurance
and Indemnity Agreement, Indemnification Agreement and Note Depository
Agreement.

     2.  Representations and Warranties of the Seller and Franklin Capital.
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Each of the Seller and Franklin Capital jointly and severally represents and
warrants to and agrees with the Underwriter that:


     (a) A registration statement on Form S-3 (No. 333- 72180), including a
prospectus, relating to the Notes has been filed with the Securities and
Exchange Commission (the "Commission") and has become effective. Such
registration statement, as amended as of the date of the Agreement, together
with any filings incorporated by reference into it, is hereinafter referred to
as the "Registration Statement," and the prospectus included in such
Registration Statement, as supplemented to reflect the terms of the Notes as
first filed with the Commission after the date of this Agreement pursuant to and
in accordance with Rule 424(b) ("Rule 424(b)") under the Securities Act of 1933,
as amended (the "Act"), including all material incorporated by reference
therein, is hereinafter referred to as the "Prospectus; the "Base Prospectus"
means the base prospectus dated November 28, 2001 included in the Prospectus;
the "Prospectus Supplement" means the prospectus supplement dated the date
hereof included in the Prospectus.

     (b) On the effective date of the registration statement relating to the
Notes, such registration statement conformed in all respects to the requirements
of the Act and the rules and regulations of the Commission promulgated under the
Act (the "Rules and Regulations") and did not include any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, and on the date of
this Agreement the Registration Statement and the preliminary prospectus
conform, and at the time of the filing of the Prospectus in accordance with Rule
424(b), the Registration Statement and the Prospectus will conform in all
respects to the requirements of the Act and the Rules and Regulations, and
neither of such documents includes or will include any untrue statement of a
material fact or omits or will omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading. The
preceding sentence does not apply

                                      -2-

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to statements in or omissions from such documents based upon (i) written
information furnished to the Seller by the Underwriter specifically for use
therein, it being understood that the only such information consists of the
Underwriter's Information (as defined in Section 7(f)) or (ii) the information
set forth in the Prospectus under the caption "The Insurer."

     (c) The Notes are "asset backed securities" within the meaning of, and
satisfy the requirements for use of, Form S-3 under the Act.

     (d) The documents incorporated by reference in the Registration Statement
and Prospectus, at the time they were or hereafter are filed with the
Commission, complied and will comply in all material respects with the
requirements of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), and the rules and regulations of the Commission thereunder.

     (e) Each of the Seller, Franklin Capital and Franklin Resources is a
corporation or limited liability company, as applicable, duly organized, validly
existing and in good standing under the laws of its respective state of
incorporation or formation, as applicable, is duly qualified to transact
business as a foreign corporation or limited liability company, as applicable,
in each jurisdiction in which it is required to be so qualified and has all
necessary licenses, permits and consents to conduct its business as presently
conducted and as described in the Prospectus and to perform its obligations
under the Basic Documents.

     (f) This Agreement and each of the Basic Documents to which it is a party
has been duly authorized, executed and delivered by the Seller, Franklin Capital
and Franklin Resources, constitutes a valid and binding agreement of each of the
Seller, Franklin Capital and Franklin Resources, enforceable against the Seller,
Franklin Capital and Franklin Resources in accordance with its terms, subject as
to the enforcement of remedies (x) to applicable bankruptcy, insolvency,
reorganization, moratorium, and other similar laws affecting creditors' rights
generally, (y) to general principles of equity (regardless of and whether the
enforcement of such remedies is considered in a proceeding in equity or at law)
and (z) with respect to rights of indemnity under this Agreement, the Letter
Agreement and the Indemnification Agreement, to limitations of public policy
under applicable securities laws.

     (g) None of the Seller, Franklin Capital or Franklin Resources is in breach
or violation of any credit or security agreement or other agreement or
instrument to which it is a party or by which it or its properties may be bound,
or in violation of any applicable law, statute, regulation or ordinance or any
governmental body having jurisdiction over it, which breach or violation would
have a material and adverse effect on its ability to perform its obligations
under this Agreement or any of the Basic Documents, in each case, to which it is
a party.

     (h) Other than as contemplated by this Agreement or as disclosed in the
Prospectus, there is no broker, finder or other party that is entitled to
receive from the Seller, Franklin Capital or any affiliate thereof or the
Underwriter, any brokerage or finder's fee or other fee or commission as a
result of any of the transactions contemplated by this Agreement.

                                      -3-

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     (i) None of Franklin Capital, Franklin Resources or the Seller has entered
into, nor will it enter into, any contractual arrangement with respect to the
distribution of the Notes, except for this Agreement.

     (j) The Trust is not an "investment company" and is not required to be
registered as an "investment company," as such term is defined in the Investment
Company Act of 1940, as amended (the "Investment Company Act").

     (k) As of the Closing Date (as defined below), the representations and
warranties of the Seller, Franklin Capital and Franklin Resources, in each of
its capacities under each of the Basic Documents, to which it is a party will be
true and correct in all material respects and each such representation and
warranty is so incorporated herein by this reference.

     (l) The Seller has filed the preliminary prospectus supplement relating to
the Notes pursuant to and in accordance with Rule 424(b).

     (m) On or before the Closing Date, the Basic Documents will have been duly
authorized, executed and delivered by each of the parties thereto.

     (n) The Certificates, when duly and validly executed by the Owner Trustee,
authenticated and delivered in accordance with the Trust Agreement, and
delivered to and paid for pursuant hereto will be validly issued and outstanding
and entitled to the benefits of the Trust Agreement.

     (o) The Trust's assignment of the Collateral to the Trustee pursuant to the
Indenture will vest in the Trustee, for the benefit of the Noteholders, a first
priority perfected security interest therein, subject to no other outstanding
Lien.

     (p) The Notes, when duly and validly executed by the Trustee, authenticated
and delivered in accordance with the Indenture, and delivered and paid for
pursuant hereto will be enforceable in accordance with their terms, subject as
to enforceability to the effects of applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium and similar laws now or
hereafter in effect relating to creditors' rights generally and subject to
general principles of equity (whether in a proceeding at law or in equity).

     (q) Neither the execution, delivery or performance of any of the Basic
Documents by the Seller, or Franklin Capital, nor the issuance, sale and
delivery of the Notes or Certificates, nor the fulfillment of the terms of the
Notes or Certificates, will conflict with, or result in a breach, violation or
acceleration of, or constitute a default under, any term or provision of the
organizational documents of the Seller, or Franklin Capital, any material
indenture or other material agreement or instrument to which the Seller, or
Franklin Capital is a party or by which either of them or their properties is
bound or result in a violation of or contravene the terms of any statute, order
or regulation applicable to the Seller, or Franklin Capital of any court,
regulatory body, administrative agency, governmental body or arbitrator having
jurisdiction over the Seller, or Franklin Capital, or will result in the
creation of any lien upon any material property or assets of the Seller, or
Franklin Capital (other than pursuant to the Basic Documents).

                                      -4-

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     (r) There are no legal or governmental proceedings pending to which the
Seller, Franklin Capital or Franklin Resources is a party or of which any of its
properties is the subject, which if determined adversely to the Seller, Franklin
Capital or Franklin Resources would individually or in the aggregate have a
material adverse effect on the financial position, shareholders' equity or
results of operations of any of them; and to the best of the Seller's, Franklin
Capital's or Franklin Resources' knowledge, no such proceedings are threatened
or contemplated by governmental authorities or others.

     (s) No consent, license, approval, authorization or order of or declaration
or filing with any governmental authority is required for the issuance of the
Notes and Certificates or sale of the Notes or the consummation of the other
transactions contemplated by this Agreement or the Basic Documents, except such
as have been duly made or obtained.

     (t) Since the respective dates as of which information is given in the
Registration Statement and the Prospectus, there has not been any material
adverse change, or any development which could reasonably be expected to result
in a material adverse change, in or affecting the financial position,
shareholders' equity or results of operations of the Seller, Franklin Capital or
Franklin Resources, or the Seller's, Franklin Capital's or Franklin Resources'
ability to perform its obligations under this Agreement or any of the Basic
Documents to which it is a party.

     (u) Any taxes, fees and other governmental charges due on or prior to the
Closing Date (including, without limitation, sales taxes) in connection with the
execution, delivery and issuance of this Agreement, the Basic Documents and the
Securities have been or will have been paid at or prior to the Closing Date.

     (v) The Receivables transferred by Franklin Capital to the Seller are
chattel paper as defined in the Uniform Commercial Code as in effect in the
State of Utah. The Receivables transferred by the Seller to the Trust are
chattel paper as defined in the Uniform Commercial Code as in effect in the
States of Delaware and Utah.

     (w) Under generally accepted accounting principles, (i) Franklin Capital
will report its transfer of the Receivables transferred by it to the Seller
pursuant to the Loan Purchase Agreement and (ii) the Seller will report its
transfer of the Receivables to the Trustee pursuant to the Sale and Servicing
Agreement as a sale of the Receivables for financial accounting purposes.

     (x) Immediately prior to the transfer thereof to the Seller pursuant to the
Loan Purchase Agreement, Franklin Capital is the sole owner of all right, title
and interest in, and has good and marketable title to the Receivables and the
other property to be transferred to the Seller. Franklin Capital, pursuant to
the Loan Purchase Agreement, is transferring to the Seller ownership of the
Receivables, the security interest in the Financed Vehicles securing the
Receivables and the proceeds of each of the foregoing, and, immediately prior to
the transfer thereof to the Trust, the Seller will be the sole owner of all
right, title and interest in, and will have good and marketable title to, the
Receivables and the other property to be transferred by it to the Trust. The
assignment of the Receivables, all documents and instruments relating thereto
and all proceeds thereof to the Trust, pursuant to the Loan Purchase Agreement
and the Sale and

                                      -5-

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Servicing Agreement, vests in the Trust all interests which are purported to be
conveyed thereby, free and clear of any liens, security interests or
encumbrances.

        (y)     Immediately prior to the transfer of the Receivables to the
Seller, Franklin Capital's interest in the Receivables and the proceeds thereof
shall be perfected upon the filing of UCC-1 financing statements (the "Financing
Statements") in the offices specified in Schedule I for Franklin Capital and
there shall be no unreleased statements affecting the Receivables filed in such
offices other than the Financing Statements. If a court concludes that the
transfer of the Receivables from Franklin Capital to the Seller is a sale, the
interest of the Seller in the Receivables and the proceeds thereof will be
perfected upon the filing of the Financing Statements in the offices specified
in Schedule I for Franklin Capital. If a court concludes that such transfer is
not a sale, the Loan Purchase Agreement and the transactions contemplated
thereby constitute a grant by Franklin Capital to the Seller of a valid security
interest in the Receivables and the proceeds thereof, which security interest
will be perfected upon the filing of the Financing Statements in the offices
specified in Schedule I for Franklin Capital. No filing or other action, other
than the filing of the Financing Statements in the offices specified in Schedule
I for Franklin Capital referred to above, is necessary to perfect and maintain
the interest or the security interest of the Seller in the Receivables and the
proceeds thereof against third parties.

        (z)     Immediately prior to the transfer of the Receivables to the
Trust, the Seller's interest in the Receivables and the proceeds thereof shall
be perfected upon the filing of the Financing Statements and there shall be no
unreleased statements affecting the Receivables filed in such offices other than
the Financing Statements. If a court concludes that the transfer of the
Receivables from the Seller to the Trust is a sale, the interest of the Trust in
the Receivables and the proceeds thereof will be perfected upon the filing of
the Financing Statements in the offices specified in Schedule I for the Seller.
If a court concludes that such transfer is not a sale, the Sale and Servicing
Agreement and the transactions contemplated thereby constitute a grant by the
Seller to the Trust of a valid security interest in the Receivables and the
proceeds thereof, which security interest will be perfected upon the filing of
the Financing Statements in the offices specified in Schedule I for the Seller.
No filing or other action, other than the filing of the Financing Statements in
the offices specified in Schedule I for the Seller and Franklin Capital referred
to above and any related continuation statements, is necessary to perfect and
maintain the interest or the security interest of the Trust in the Receivables
and the proceeds thereof against third parties.

        (aa)    The Trust Agreement need not be qualified under the Trust
Indenture Act of 1939, as amended and the Trust is not required to register
under the Investment Company Act of 1940, as amended.

        (bb)    The Indenture has been qualified under the Trust Indenture Act
of 1939, as amended.

        (cc)    As of the Closing Date, each of the respective representations
and warranties of the Seller and Franklin Capital set forth in the Basic
Documents will be true and correct, and the Underwriter may rely on such
representations and warranties as if they were set forth herein in full.

                                      -6-

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        3.      Purchase, Sale and Delivery of the Notes. On the basis of the
                ----------------------------------------
representations, warranties and agreements herein contained, but subject to the
terms and conditions herein set forth, the Seller agrees to cause the Trust to
sell to the Underwriter, and the Underwriter agrees, to purchase from the Trust,
the principal amount of each class of Notes set forth on Schedule II hereto at a
purchase price equal to "Price $" as specified on Schedule II hereto.

        The Seller will deliver the Notes to the Underwriter, against payment of
the purchase price to or upon the order of the Seller by wire transfer or check
in Federal (same day) Funds, at the office of Morrison & Foerster LLP, 1290
Avenue of the Americas, New York, NY 10104, at 10:00 a.m., New York time on
December 13, 2001, or at such other time not later than seven full business days
thereafter as the Underwriter and the Seller determine, such time being herein
referred to as the "Closing Date." The Notes to be so delivered will be
initially represented by one or more Notes registered in the name of Cede & Co.,
the nominee of The Depository Trust Company ("DTC"). The interests of beneficial
owners of the Notes will be represented by book entries on the records of DTC
and participating members thereof. Definitive Notes will be available only under
the limited circumstances specified in the Basic Documents.

        4.      Offering by Underwriter. It is understood that, the Underwriter
                -----------------------
proposes to offer the Notes for sale to the public (which may include selected
dealers), on the terms set forth in the Prospectus. It is further understood
that the Underwriter shall not deliver any Computational Materials to any
potential investors unless such Computational Materials have been approved of by
the Seller.

        5.      Covenants of the Seller and Franklin Capital.  Each of the
                --------------------------------------------
Seller and Franklin Capital, jointly and severally, covenants and agrees with
the Underwriter that:

        (a)     The Seller will file the Prospectus, properly completed, with
the Commission pursuant to and in accordance with subparagraph (2) (or, if
applicable and if consented to by the Underwriter, subparagraph (5)) of Rule
424(b) no later than the second business day following the earlier of the date
of determination of the offering price or the date it is first used. The Seller
and Franklin Capital will advise the Underwriter promptly of any such filing
pursuant to Rule 424(b). The Seller shall file with the Commission a current
report on Form 8-K (the "Current Report") including any "computational
materials," "structural terms sheets" or "collateral term sheets" (together
"Computational Materials") (i) no later than the date that the Prospectus
Supplement is filed with respect to "computational materials" and "structural
terms sheets" (as such terms are interpreted in the No-Action letters addressed
to Kidder, Peabody Acceptance Corporation I, et al. and the Public Securities
Association dated May 20, 1994 and February 17, 1995, respectively
(collectively, the "PSA Letters")) or (ii) no later than two days following
their date of first use with respect to "collateral term sheets" (as such term
is interpreted in the PSA Letters).

        (b)     The Seller and Franklin Capital will advise the Underwriter
promptly of any proposal to amend or supplement the Registration Statement or
the Prospectus and will not effect such amendment or supplementation without the
consent of the Underwriter, which consent shall not be unreasonably withheld or
delayed; and the Seller and Franklin Capital will

                                      -7-

<PAGE>

advise the Underwriter promptly of any amendment or supplementation of the
Registration Statement or the Prospectus and of the institution by the
Commission of any stop order proceedings in respect of the Registration
Statement and will use its best efforts to prevent the issuance of any such stop
order and to obtain as soon as possible its lifting, if issued.

        (c)     If, at any time when a prospectus relating to the Notes is
required to be delivered by an Underwriter or dealer either (i) any event occurs
as a result of which the Prospectus as then amended or supplemented would
include an untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made not misleading, or (ii) for any other
reason it shall be necessary to amend or supplement the Prospectus to comply
with the Act, the Seller and Franklin Capital promptly will notify the
Underwriter of such event and promptly will prepare, at their own expense, an
amendment or supplement which will correct such statement or omission. Neither
the Underwriter's consent to, nor the Underwriter's distribution of any
amendment or supplement to the Prospectus shall constitute a waiver of any of
the conditions set forth in Section 6 hereof.

        (d)     The Seller and Franklin Capital will furnish to the Underwriter
copies of any preliminary prospectus, the Prospectus, the Registration Statement
and all amendments and supplements to such documents, in each case as soon as
available and in such quantities as the Underwriter reasonably requests.

        (e)     The Seller and Franklin Capital will take all actions which are
reasonably necessary to arrange for the qualification of the Notes for offering
and sale under the laws of such jurisdictions as the Underwriter designates and
will continue such qualifications in effect so long as required under such laws
for the distribution of the Notes; provided, however, that in no event shall the
                                   --------  -------
Seller be obligated to qualify as a foreign corporation or to execute a general
or unlimited consent to service of process in any such jurisdiction.

        (f)     The Seller and Franklin Capital shall furnish or make available
to the Underwriter or its counsel such additional documents and information
regarding the Seller and Franklin Capital and their respective affairs as the
Underwriter may from time to time reasonably request, including any and all
documentation reasonably requested in connection with its due diligence efforts
regarding information in the Registration Statement and the Prospectus and in
order to evidence the accuracy or completeness of any of the conditions
contained in this Underwriting Agreement; and all actions taken by the Seller to
authorize the sale of the Notes shall be reasonably satisfactory in form and
substance to the Underwriter.

        (g)     The Seller and Franklin Capital shall, at all times upon request
of the Underwriter or its advisors, or both, from the date hereof through the
Closing Date, (i) make available to the Underwriter or its advisors, or both,
prior to acceptance of its purchase, such information (in addition to that
contained in the Registration Statement and the Prospectus) concerning the
offering, the Seller and any other relevant matters as they possess or can
acquire without unreasonable effort or expense and (ii) provide the Underwriter
or its advisors, or both, prior to acceptance of its subscription, the
opportunity to ask questions of, and receive answers from, the Seller and
Franklin Capital with respect to such matters.

                                      -8-

<PAGE>


        (h)     The Seller and Franklin Capital will cause the Trust to make
generally available to Noteholders, as soon as practicable, but no later than
sixteen months after the date hereof, an earnings statement of the Trust
covering a period of at least twelve consecutive months beginning after the
later of (i) the effective date of the registration statement relating to the
Notes and (ii) the effective date of the most recent post-effective amendment to
the Registration Statement to become effective prior to the date of this
Agreement and, in each case, satisfying the provisions of Section 11(a) of the
Act (including Rule 158 promulgated thereunder).

        (i)     Until the retirement of the Notes, the Seller will deliver to
the Underwriter the annual statements of compliance and the annual independent
certified public accountants' reports furnished to the Trustee pursuant to the
Basic Documents, as soon as such statements and reports are furnished to the
Trustee.

        (j)     So long as any of the Notes are outstanding, the Seller will
furnish to the Underwriter (i) as soon as practicable after the end of the
fiscal year all documents required to be distributed to Noteholders or filed
with the Commission on behalf of the Trust pursuant to the Exchange Act, or any
order of the Commission thereunder and (ii) from time to time, any other
information concerning the Seller or Franklin Capital as the Underwriter may
reasonably request only insofar as such information reasonably relates to the
Registration Statement or the Prospectus or the transactions contemplated by the
Basic Documents.

        (k)     On or before the Closing Date, the Seller and Franklin Capital
shall cause the computer records of the Seller and Franklin Capital relating to
the Receivables to show the absolute ownership by the Owner Trustee on behalf of
the Trust of the Receivables, and from and after the Closing Date neither the
Seller nor Franklin Capital shall take any action inconsistent with the
ownership by the Owner Trustee on behalf of the Trust of such Receivables, other
than as permitted by the Sale and Servicing Agreement.

        (l)     To the extent, if any, that any of the ratings provided with
respect to the Notes by the rating agency or agencies that initially rate any of
the Notes are conditional upon the furnishing of documents or the taking of any
other actions by the Seller or Franklin Capital on or prior to the Closing Date,
one of the Seller or Franklin Capital shall furnish such documents and take any
such other actions. A copy of any such document shall be provided to the
Underwriter at the time it is delivered to the rating agencies.

        (m)     Franklin Capital will pay all expenses incident to the
performance of its obligations under this Agreement, including (i) the printing
and filing of the documents (including the Registration Statement and the
Prospectus), (ii) the preparation, issuance and delivery of the Notes to the
Underwriter, (iii) the fees and disbursements of Franklin Capital's, the
Seller's and Franklin Resources' counsel (including without limitation, local
counsel in the State of Utah) and accountants, (iv) the qualification of the
Notes under state securities laws, including filing fees and the fees and
disbursements of counsel for the Underwriter in connection therewith and in
connection with the preparation of any blue sky or legal investment survey, if
any is requested, (v) the printing and delivery to the Underwriter of copies of
the Registration Statement and the Prospectus and each amendment thereto, (vi)
the fees and reasonable expenses of the Underwriter and its counsel, (vii) any
fees charged by rating agencies for the rating of the

                                      -9-

<PAGE>

Notes, (viii) the fees and expenses of the Trustee and its counsel, (ix) the
fees and expenses of the Owner Trustee, the Trust and each of their counsel and
(x) the fees and expenses of the Security Insurer and its counsel.

        6.      Conditions of the Obligations of the Underwriter. The
                ------------------------------------------------
obligations of the Underwriter to purchase and pay for the Notes will be subject
to the accuracy, as of the date hereof and as of the Closing Date, of the
representations and warranties on the part of the Seller and Franklin Capital
herein, to the accuracy of the written statements of officers of the Seller and
Franklin Capital made pursuant to the provisions of this Section, to the
performance by the Seller and Franklin Capital of its obligations hereunder and
to the following additional conditions precedent:

        (a)     The Underwriter shall have received a letter, dated the date
hereof, of PricewaterhouseCoopers LLP, confirming that such accountants are
independent public accountants within the meaning of the Act and the Rules and
Regulations, and substantially in the form of the drafts to which the
Underwriter has previously agreed and otherwise in form and substance reasonably
satisfactory to the Underwriter and counsel for the Underwriter (i) regarding
certain numerical information contained in the Prospectus and the Computational
Materials and (ii) relating to certain agreed-upon procedures.

        (b)     The Prospectus and the Computational Materials shall have been
filed with the Commission in accordance with the Rules and Regulations and
Section 5(a) hereof. On or prior to the Closing Date, no stop order suspending
the effectiveness of the Registration Statement shall have been issued and no
proceedings for that purpose shall have been instituted or, to the knowledge of
the Seller or Franklin Capital, shall be contemplated by the Commission.

        (c)     Subsequent to the execution and delivery of this Agreement,
there shall not have occurred (i) any change, or any development involving a
prospective change, in or affecting the Receivables or particularly the business
or properties of (x) the Trust, the Seller, Franklin Capital or Franklin
Resources or (y) the Security Insurer which, in the reasonable judgment of the
Underwriter, materially impairs the investment quality of the Notes; (ii) any
downgrading in the rating of (x) any securities of Franklin Resources by any
"nationally recognized statistical rating organization" (as defined for purposes
of Rule 436(g) under the Act), or any public announcement that any such
organization has under surveillance or review its rating of any such debt
securities (other than an announcement with positive implications of a possible
upgrading, and no implication of a possible downgrading, of such rating) or (y)
the claims-paying ability of the Security Insurer by any "nationally recognized
statistical rating organization" or if the claims-paying ability of the Security
Insurer has been put on the "watch list" of any such rating organization with
negative implications; (iii) any suspension or limitation of trading in
securities generally on the New York or American Stock Exchanges, or any setting
of minimum prices for trading on such exchange; (iv) any suspension of trading
of any securities of Franklin Resources on any exchange, the NASDAQ National
Market or in the over-the-counter market; (v) any banking moratorium declared by
Federal or New York authorities; (vi) any outbreak or escalation of hostilities
in which the United States is involved, any declaration of war by Congress or
any other substantial national or international calamity or emergency if, in the
judgment of the Underwriter, the effect of any such outbreak, escalation,
declaration, calamity or emergency makes it impractical or inadvisable to
proceed with

                                      -10-

<PAGE>

completion of the sale of and payment for the Notes or (vii) a material
disruption has occurred in securities settlement or clearance services in the
United States.

                (d)     On the Closing Date, each of the Basic Documents and the
Securities shall have been duly authorized, executed and delivered by the
parties thereto, shall be in full force and effect and no default shall exist
thereunder, and the Owner Trustee shall have received a fully executed copy
thereof or, with respect to the Notes, a conformed copy thereof. The Basic
Documents and the Securities shall be substantially in the forms heretofore
provided to the Underwriter.

                (e)     The Underwriter shall have received an opinion of
Morrison & Foerster LLP, special counsel to Franklin Capital, the Seller and
Franklin Resources, dated the Closing Date, satisfactory in form and substance
to the Underwriter, to the effect that:

                (i)     The Seller has been duly formed and is validly existing
                as a limited liability company in good standing under the laws
                of the state of its incorporation, with full corporate power and
                authority to own its properties and conduct its business, and is
                duly qualified to transact business and is in good standing in
                each jurisdiction in which its failure to qualify would have a
                material adverse effect upon the business or the ownership of
                its property.

                (ii)    This Agreement has been duly authorized, executed and
                delivered by the Seller. The Basic Documents to which it is a
                party have been duly authorized, executed and delivered by the
                Seller.

                (iii)   The Seller has full power and authority to sell and
                assign the property to be sold and assigned to the Trust by it
                pursuant to the Sale and Servicing Agreement and has duly
                authorized such sale and assignment to the Trust by all
                necessary corporate action.

                (iv)    Assuming that this Agreement and the Basic Documents
                have been duly authorized, executed and delivered by Franklin
                Capital and Franklin Resources, this Agreement and the Basic
                Documents to which each of Franklin Capital, Franklin Resources
                and the Seller is a party are the legal, valid and binding
                obligation of Franklin Capital, Franklin Resources and the
                Seller, enforceable against Franklin Capital, Franklin Resources
                and the Seller in accordance with their terms, subject as to
                enforceability to the effects of applicable bankruptcy,
                insolvency, reorganization, fraudulent conveyance, moratorium
                and similar laws now or hereafter in effect relating to
                creditors' rights generally and subject to general principles of
                equity (whether in a proceeding at law or in equity).

                (v)     The Seller has duly authorized, executed and delivered
                the written order to the Owner Trustee to execute and deliver
                the Issuer Order to the Trustee.

                (vi)    The Seller has duly authorized, executed and delivered
                the written order to the Owner Trustee to execute and deliver
                the Certificates.

                                      -11-

<PAGE>

                (vii)   When the Notes have been executed, authenticated and
                delivered in accordance with the Indenture and paid for pursuant
                to this Agreement, the Notes will be validly issued and
                outstanding and enforceable in accordance with their terms,
                subject as to enforceability to the effects of applicable
                bankruptcy, insolvency, reorganization, fraudulent conveyance,
                moratorium and similar laws now or hereafter in effect relating
                to creditors' rights generally and subject to general principles
                of equity (whether in a proceeding at law or in equity).

                (viii)  Neither the transfer of certain of the Receivables by
                the Seller to the Trustee on behalf of the Trust, nor the
                assignment by the Seller of the Trust Estate to the Trust, nor
                the grant by the Trust of the security interest in the
                Collateral to the Owner Trustee pursuant to the Indenture, nor
                the execution, delivery and performance by the Seller of the
                Basic Documents to which it is a party, nor the consummation by
                the Seller of the transactions contemplated thereby will
                conflict with or result in a breach of any of the terms or
                provisions of, or constitute a default under, or result in the
                creation or imposition of any lien, charge or encumbrance upon
                any of the property or assets of the Seller, pursuant to the
                terms of the formation documents of the Seller or any statute,
                rule, regulation or order of any governmental agency or body, or
                any court having jurisdiction over the Seller or its properties,
                or any agreement or instrument known to me after due
                investigation to which the Seller is a party or by which the
                Seller or any of its properties is bound.

                (ix)    No authorization, license, approval, consent or order
                of, or filing with, any court or governmental agency or
                authority is necessary in connection with the execution,
                delivery and performance of this Agreement and each of the Basic
                Documents to which it is a party by Franklin Capital, the Seller
                or Franklin Resources.

                (x)     To the best of such counsel's knowledge, there are no
                contracts or documents of the Seller which are required to be
                filed as exhibits to the Registration Statement pursuant to the
                Act or the Rules or Regulations which have not been so filed.

                (xi)    The Registration Statement became effective under the
                Act as of November 7, 2001 and, to the best of such counsel's
                knowledge, no stop order suspending the effectiveness of the
                Registration Statement or any part thereof or any amendment
                thereto has been issued under the Act and no proceeding for that
                purpose has been instituted or threatened by the Commission.

                (xii)   The Seller is not, and will not as a result of the offer
                and sale of the Notes as contemplated in the Prospectus and this
                Agreement become, an "investment company" as defined in the
                Investment Company Act of 1940, as amended (the "Investment
                Company Act"), or a company "controlled by" an "investment
                company" within the meaning of the Investment Company Act.

                                      -12-

<PAGE>


                (xiii)  The Trust Agreement need not be qualified under the
                Trust Indenture Act and the Trust is not required to register
                under the Investment Company Act.

                (xiv)   The Indenture has been duly qualified under the Trust
                Indenture Act.

                (xv)    The statements in the Prospectus Supplement under the
                headings "Summary of Terms of the Notes -- Tax Status," "Federal
                Income Tax Consequences," "Summary of Terms of the Notes --
                ERISA Considerations," and "ERISA Considerations," and in the
                Base Prospectus under the headings "Prospectus Summary -- Tax
                Status," "Federal Income Tax Consequences," "Prospectus Summary
                -- ERISA Considerations," and "ERISA Considerations," to the
                extent that they constitute statements of matters of law or
                legal conclusions with respect thereto, have been reviewed by
                such counsel and accurately describe the material consequences
                to holders of the Notes under the Code and ERISA.

                (xvi)   The Registration Statement relating to the Notes as of
                its effective date and the Prospectus as of the date of this
                Agreement, and any amendment or supplement thereto, as of its
                date, complied as to form in all material respects with the
                requirements of the Act and the applicable Rules and
                Regulations. Such counsel need express no opinion with respect
                to the financial statements, the exhibits, annexes and other
                financial, statistical, numerical or portfolio data, economic
                conditions or financial condition of the portfolio information
                included in or incorporated by reference into the Registration
                Statement relating to the Notes, the Prospectus or any amendment
                or supplement thereto.

                (xvii)  Such counsel shall state that they have participated in
                the preparation of the Registration Statement and the
                Prospectus, and that no facts have come to their attention which
                cause them to believe that the Registration Statement relating
                to the Notes as of its effective date, and the Prospectus (other
                than information regarding the Security Insurer under the
                caption "The Insurer"), as of the date of this Agreement, and
                any amendment or supplement thereto, as of its date when it
                became effective, contained any untrue statement of a material
                fact or omitted to state a material fact required to be stated
                therein or necessary to make the statements therein not
                misleading or that the Prospectus (other than information
                regarding the Security Insurer under the caption "The Insurer")
                on its date contained or on the Closing Date contains, any
                untrue statement of a material fact necessary in order to make
                the statements therein, in the light of the circumstances under
                which they were made, not misleading; provided that such counsel
                need not express any view with respect to the financial,
                statistical or computational material included in or
                incorporated by reference into the Registration Statement
                relating to the Notes, the Prospectus or any amendment or
                supplement thereto.

                Such opinion may contain such assumptions, qualifications and
limitations as are customary in opinions of this type and are reasonably
acceptable to counsel to the Underwriter. In rendering such opinion, such
counsel may state that they express no opinion as to the laws of

                                      -13-

<PAGE>

any jurisdiction other than the federal law of the United States of America and
the laws of the State of New York.

                (f)     The Underwriter shall have received an opinion of
in-house counsel to Franklin Capital, the Seller and Franklin Resources, dated
the Closing Date, satisfactory in form and substance to the Underwriter, to the
effect that:

                (i)     Franklin Resources has been duly incorporated and is
                validly existing as a corporation in good standing under the
                laws of the state of its incorporation, with full corporate
                power and authority to own its properties and conduct its
                business, and is duly qualified to transact business and is in
                good standing in each jurisdiction in which its failure to
                qualify would have a material adverse effect upon the business
                or the ownership of its property.

                (ii)    The Basic Documents to which it is a party have been
                duly authorized, executed and delivered by each of the Seller
                and Franklin Resources.

                (iii)   Franklin Resources has full power and authority to enter
                into the Basic Documents to which it is a party and has duly
                authorized entering into such documents by all necessary
                corporate action.

                (iv)    Neither the execution, delivery and performance by
                Franklin Resources of the Basic Documents to which it is a
                party, nor the consummation by Franklin Resources of the
                transactions contemplated thereby will conflict with or result
                in a breach of any of the terms or provisions of, or constitute
                a default under, or result in the creation or imposition of any
                lien, charge or encumbrance upon any of the property or assets
                of Franklin Resources, pursuant to the terms of the certificate
                of incorporation or the by-laws of Franklin Resources or any
                statute, rule, regulation or order of any governmental agency or
                body, or any court having jurisdiction over Franklin Resources
                or its properties, or any agreement or instrument known to me
                after due investigation to which Franklin Resources is a party
                or by which Franklin Resources or any of its properties is
                bound.

                (v)     To the best of the knowledge of such counsel, there are
                no legal or governmental proceedings pending to which Franklin
                Capital, the Seller or Franklin Resources is a party or of which
                any property of Franklin Capital, the Seller or Franklin
                Resources is the subject, and no such proceedings are known to
                such counsel to be threatened or contemplated by governmental
                authorities or threatened by others (i) asserting the invalidity
                of all or any part of this Agreement or any of the Basic
                Documents or (ii) that could materially adversely affect the
                ability of Franklin Capital, the Seller or Franklin Resources to
                perform their obligations under any of the Basic Documents to
                which either is a party.

                (vi)    Such counsel is familiar with Franklin Capital's
                standard operating procedures relating to the acquisition of a
                perfected first priority security interest in the vehicles
                financed by Franklin Capital pursuant to retail installment sale
                contracts in the ordinary course of their business. Assuming
                that these standard

                                      -14-

<PAGE>

                procedures are followed with respect to the perfection of
                security interests in the Financed Vehicles, Franklin Capital
                has acquired or will acquire a perfected first priority security
                interests in the Financed Vehicles with respect to which it has
                originated Receivables sold by it to the Seller.

                (vii)   Immediately prior to the transfer of certain of the
                Receivables by Franklin Capital pursuant to the Loan Purchase
                Agreement, Franklin Capital was the sole owner of all right,
                title and interest in the Receivables and the other property
                transferred by it to the Seller. Immediately prior to the
                transfer of certain of the Receivables by the Seller pursuant to
                the Sale and Servicing Agreement, the Seller was the sole owner
                of all right, title and interest in the Receivables and the
                other property transferred by it to the Trust.

                (viii)  Franklin Capital has all necessary licenses required by
                law in connection with its performance as Servicer pursuant to
                the Sale and Servicing Agreement.

                (ix)    To such counsel's knowledge, there are no material legal
                or governmental proceedings pending or threatened against
                Franklin Capital, the Seller or Franklin Resources other than
                those disclosed in the Registration Statement and the
                Prospectus.

                Such opinion may contain such assumptions, qualifications and
limitations as are customary in opinions of this type and are reasonably
acceptable to counsel to the Underwriter. In rendering such opinion, such
counsel may state that they express no opinion as to the laws of any
jurisdiction other than the federal law of the United States of America and the
laws of the State of Delaware and Utah.

                (g)     The Underwriter shall have received the opinion of
Morrison & Foerster LLP, special counsel to the Trust, dated the Closing Date,
satisfactory in form and substance to the Underwriter and counsel for the
Underwriter, regarding the creation and attachment of a security interest in the
Receivables with respect to the transfer of the Receivables from Franklin
Capital to the Seller and the Seller to the Trust and the pledge of the
Receivables from the Trust to the Trustee. Such opinion may contain such
assumptions, qualifications and limitations as are customary in opinions of this
type and are reasonably acceptable to counsel to the Underwriter. In rendering
such opinion, such counsel may state that they express no opinion as to the laws
of any jurisdiction other than the federal law of the United States of America
and the laws of the State of New York.

                (h)     The Underwriter shall have received the opinion of
Callister, Nebeker & McCullough, counsel to Franklin Capital or such other
counsel acceptable to the Underwriter and counsel for the Underwriter, dated the
Closing Date, satisfactory in form and substance to the Underwriter and counsel
for the Underwriter to the effect that:

                (i)     Franklin Capital has been duly incorporated and is
                validly existing as a corporation in good standing under the
                laws of the state of its incorporation, with full corporate
                power and authority to own its properties and conduct its
                business, and is duly qualified to transact business and is in
                good standing in each

                                      -15-

<PAGE>

jurisdiction in which its failure to qualify would have a material adverse
effect upon the business or the ownership of its property.

(ii)    Franklin Capital has full power and authority to sell and assign the
property to be sold and assigned to the Seller by it pursuant to the Loan
Purchase Agreement and has duly authorized such sale and assignment to the Trust
by all necessary corporate action.

(iii)   This Agreement and each of the Basic Documents to which it is a party
have been duly authorized, executed and delivered by Franklin Capital.

(iv)    Neither the transfer of the Receivables by Franklin Capital to the
Seller or the Seller to the Trustee on behalf of the Trust, nor the assignment
by the Seller of the Trust Estate to the Trust, nor the grant by the Trust of
the security interest in the Collateral to the Trustee pursuant to the
Indenture, nor the execution, delivery and performance by the Seller or Franklin
Capital of this Agreement and the Basic Documents to which it is a party, nor
the consummation of the transactions contemplated thereby will conflict with or
result in a breach of any of the terms or provisions of, or constitute a default
under, or result in the creation or imposition of any lien, charge or
encumbrance upon any of the property or assets of Franklin Capital, pursuant to
the terms of the certificate of incorporation or the by-laws of Franklin Capital
or any statute, rule, regulation or order of any governmental agency or body, or
any court having jurisdiction over Franklin Capital or the Seller or their
properties, or any agreement or instrument known to me after due investigation
to which Franklin Capital is a party or by which Franklin Capital or any of its
properties is bound.

(v)     Such counsel shall deliver an opinion regarding Utah state tax
consequences in form and substance reasonably acceptable to the Underwriter and
counsel to the Underwriter.

(vi)    The Receivables conveyed by Franklin Capital to the Seller are chattel
paper as defined in the Uniform Commercial Code as in effect in the State of
Utah.

(vii)   If the transfer of Receivables from Franklin Capital to the Seller is
considered a sale, such sale will be perfected upon the filing of financing
statements with the Utah Department of Commerce, Division of Corporations and
Commercial Code. If the transfer of Receivables from Franklin Capital to the
Seller is considered a financing, such financing will create a first priority
perfected interest upon the filing of financing statements with the Utah
Department of Commerce, Division of Corporations and Commercial Code.

(viii)  The Receivables conveyed by the Seller to the Trust are chattel paper as
defined in the Uniform Commercial Code as in effect in the State of Utah and
Delaware.

                                      -16-

<PAGE>


          (ix)   If the transfer of Receivables from the Seller to the Trust is
          considered a sale, such sale will be perfected upon the filing of
          financing statements with the Secretary of State of the State of
          Delaware. If the transfer of Receivables from the Seller to the Trust
          is considered a financing, such financing will create a first priority
          perfected interest upon the filing of financing statements with the
          Secretary of State of the State of Delaware.

          Such opinion may contain such assumptions, qualifications and
limitations as are customary in opinions of this type and are reasonably
acceptable to counsel to the Underwriter. In rendering such opinion, such
counsel may state that they express no opinion as to the laws of any
jurisdiction other than the federal law of the United States of America and the
laws of the State of New York and Utah.

          (i)    The Underwriter shall have received an opinion addressed to it
of Morrison & Foerster LLP, in its capacity as counsel to the Seller, dated the
Closing Date, with respect to (i) the consolidation of the assets and
liabilities of the Seller with those of each of (x) Franklin Capital and (y)
Franklin Resources, under the doctrine of substantive consolidation and (ii) the
creation of (x) a "true sale" with respect to the transfers of the Receivables
from Franklin Capital to the Seller and (y) with respect to the transfer of the
Receivables to the Trust, a valid and binding security interest in the
Receivables and the Seller shall have furnished or caused to be furnished to
such counsel such documents as they may reasonably request for the purpose of
enabling them to pass upon such matters. Such opinions shall be limited to the
laws of the State of New York and United States federal law.

          (j)    The Underwriter shall have received an opinion of Thacher,
Proffitt & Wood, counsel to the Trustee, dated the Closing Date and satisfactory
in form and substance to the Underwriter and counsel for the Underwriter, to the
effect that:

          (i)    The Trustee has been duly organized as a banking corporation
          and is validly existing and in good standing under the laws of the
          State of New York.

          (ii)   The Trustee has the requisite power and authority to execute,
          deliver and perform its obligations under the Indenture and has taken
          all necessary action to authorize the execution, delivery and
          performance by it of the Indenture.

          (iii)  The Indenture has been duly executed and delivered by the
          Trustee and constitutes a legal, valid and binding obligation of the
          Trustee, enforceable against the Trustee in accordance with its
          respective terms, except that such enforcement may be limited by
          bankruptcy, insolvency, reorganization, moratorium, or other similar
          laws affecting the enforcement of creditors' rights generally, and by
          general principles of equity (regardless of whether such
          enforceability is considered in a proceeding in equity or at law).

          (iv)   The Notes have been duly authenticated by the Trustee in
          accordance with the terms of the Indenture.

          Such opinion may contain such assumptions, qualifications and
limitations as are customary in opinions of this type and are reasonably
acceptable to counsel to the Underwriter.

                                      -17-

<PAGE>

In rendering such opinion, such counsel may state that they express no opinion
as to the laws of any jurisdiction other than the federal law of the United
States of America and the laws of the State of New York.

          (k)    The Underwriter shall have received an opinion of Richards,
Layton & Finger, counsel to the Owner Trustee, dated the Closing Date and
satisfactory in form and substance to the Underwriter and counsel for the
Underwriter, to the effect that:

          (i)    The Owner Trustee is a banking corporation duly incorporated
          and organized and validly existing under the laws of the Delaware.

          (ii)   The Owner Trustee has the full corporate trust power to accept
          the office of owner trustee under the Trust Agreement and to enter
          into and perform its obligations under the Trust Agreement, the
          Indenture and the Sale and Servicing Agreement.

          (iii)  The execution and delivery of the Trust Agreement, the
          Indenture and the Sale and Servicing Agreement, and the performance by
          the Owner Trustee of its obligations under the Trust Agreement, the
          Sale and Servicing Agreement and the Indenture have been duly
          authorized by all necessary action of the Owner Trustee and each has
          been duly executed and delivered by the Owner Trustee.

          (iv)   The Trust Agreement constitutes the valid and binding
          obligations of the Owner Trustee enforceable against the Owner Trustee
          in accordance with its terms.

          (v)    The execution and delivery by the Owner Trustee of the Trust
          Agreement, the Indenture and the Sale and Servicing Agreement do not
          require any consent, approval or authorization of, or any registration
          or filing with, any applicable governmental authority.

          (vi)   Each of the Notes and Certificates has been duly executed and
          delivered by the Owner Trustee, on behalf of the Trust.

          (vii)  Neither the consummation by the Owner Trustee of the
          transactions contemplated in the Sale and Servicing Agreement, the
          Indenture or the Trust Agreement nor the fulfillment of the terms
          thereof by the Owner Trustee will conflict with, result in a breach or
          violation of, or constitute a default under any law of the United
          States of America or the State of New York governing its banking or
          trust powers or the charter, by-laws or other organizational documents
          of the Owner Trustee.

          (viii) No approval, authorization or other action by, or filing with,
          any governmental authority of the United States of America or the
          State of New York having jurisdiction over the banking or trust powers
          of the Owner Trustee is required in connection with the execution and
          delivery by the Owner Trustee of the Trust Agreement, the Indenture or
          the Sale and Servicing Agreement.

                                      -18-

<PAGE>


          Such opinion may contain such assumptions, qualifications and
limitations as are customary in opinions of this type and are reasonably
acceptable to counsel to the Underwriter. In rendering such opinion, such
counsel may state that they express no opinion as to the laws of any
jurisdiction other than the federal law of the United States of America and the
laws of the State of New York and Delaware.

          (l)    The Underwriter shall have received an opinion of Richards,
          Layton & Finger, special Delaware counsel for the Trust, dated the
          Closing Date, satisfactory in form and substance to the Underwriter
          and counsel for the Underwriter, to the effect that:

          (i)    The Trust Agreement constitutes the valid and binding
          obligation of the Owner Trustee and the Seller enforceable against the
          Owner Trustee and the Seller in accordance with its terms subject to
          (i) applicable bankruptcy, insolvency, moratorium, receivership,
          reorganization, fraudulent conveyance and similar laws relating to and
          affecting the rights and remedies of creditors generally, and (ii)
          principles of equity (regardless of whether considered and applied in
          a proceeding in equity or at law).

          (ii)   The Certificate of Trust has been duly filed with the Secretary
          of State. The Trust has been duly formed and is validly existing as a
          business trust under the Delaware Business Trust Act (the "Business
          Trust Act"). The Trust has the power and authority under the Trust
          Agreement and the Act to execute and deliver the Indenture and the
          Sale and Servicing Agreement, to issue the Notes and the Certificates
          and to pledge the Trust Estate to the Trustee as security for the
          Notes.

          (iii)  Assuming that the Certificates have been duly executed and
          issued by the Trust and duly authenticated by the Owner Trustee in
          accordance with the Trust Agreement and delivered to and paid for
          pursuant to the Underwriting Agreement, the Certificates have been
          validly issued and are entitled to the benefits of the Trust
          Agreement.

          (iv)   To the extent that Article 9 of the Uniform Commercial Code as
          in effect in the State of Delaware (the "Delaware UCC") is applicable
          (without regard to conflicts of laws principles), and assuming that
          the security interest created by each of the Sale and Servicing
          Agreement and the Indenture in the Receivables has been duly created
          and has attached, upon the filing of UCC-1 financing statements with
          the Secretary of State of the State of Delaware the Trust will have a
          perfected security interest in the transfer of Receivables pursuant to
          the Sale and Servicing Agreement and the proceeds thereof, and such
          security interest will be prior to any other security interest that is
          perfected solely by the filing of financing statements under the
          Delaware UCC, excluding purchase money security interests underss.
          9-312(4) of the UCC and temporarily perfected security interests in
          proceeds underss. 9-306(3) of the Delaware UCC and the Trustee will
          have a perfected security interest in such Receivables and the
          proceeds thereof, and such security interest will be prior to any
          other security interest that is perfected solely by the filing of
          financing statements under the Delaware UCC,

                                      -19-

<PAGE>

          excluding purchase money security interests under (S)9-312(4) of the
          UCC and temporarily perfected security interests in proceeds under (S)
          9-306(3) of the Delaware UCC.

          (v)    No re-filing or other action is necessary under the Delaware
          UCC in order to maintain the perfection of such security interests
          except for the filing of continuation statements at five year
          intervals.

          (vi)   Under (S) 3805(b) of the Business Trust Act, no creditor of any
          Certificateholder shall have any right to obtain possession of, or
          otherwise exercise legal or equitable remedies with respect to, the
          property of the Trust except in accordance with the terms of the Trust
          Agreement.

          (vii)  Under (S) 3805(c) of the Business Trust Act, and assuming that
          the Sale and Servicing Agreement conveys good title to the Receivables
          to the Trust as a true sale and not as a security arrangement, the
          Trust rather than the Certificateholders is the owner of the
          Receivables.

          (viii) The execution and delivery by the Owner Trustee of the Trust
          Agreement and, on behalf of the Trust, the Indenture and the Sale and
          Servicing Agreement do not require any consent, approval or
          authorization of, or any registration or filing with, any governmental
          authority of the State of Delaware, except for the filing of the
          Certificate of Trust with the Secretary of State.

          (ix)   Neither the consummation by the Owner Trustee of the
          transactions contemplated in the Trust Agreement or, on behalf of the
          Trust, the transactions contemplated in the Indenture and the Sale and
          Servicing Agreement nor the fulfillment of the terms thereof by the
          Owner Trustee will conflict with or result in a breach or violation of
          any law of the State of Delaware.

          Such opinion may contain such assumptions, qualifications and
limitations as are customary in opinions of this type and are reasonably
acceptable to counsel to the Underwriter. In rendering such opinion, such
counsel may state that they express no opinion as to the laws of any
jurisdiction other than the federal law of the United States of America and the
laws of the State of Delaware.

          (m)    The Note Policy shall have been duly executed and issued at or
prior to the Closing Date and shall conform in all material respects to the
description thereof in the Prospectus.

          (n)    The Underwriter shall have received an opinion of Shaw,
Pittman, Potts & Trowbridge, counsel for the Security Insurer, dated the Closing
Date, satisfactory in form and substance to the Underwriter and counsel for the
Underwriter, to the effect that:

          (i)    The Security Insurer is validly existing under the laws of the
          jurisdiction of its incorporation, is duly qualified and/or licensed
          to do business in all jurisdictions where the nature of its operations
          as contemplated in the Note Policy, the Indemnification Agreement and
          the Insurance and Indemnity

                                      -20-

<PAGE>

                Agreement requires such qualification, and has the power and
                authority (corporate and other) to issue the Note Policy and to
                enter into the Note Policy, the Indemnification Agreement and
                the Insurance and Indemnity Agreement and to perform its
                obligations under the Note Policy, the Indemnification Agreement
                and the Insurance and Indemnity Agreement.

                (ii)    The execution, delivery and performance by the Security
                Insurer of the Note Policy, the Indemnification Agreement and
                the Insurance and Indemnity Agreement have been duly authorized
                by all necessary corporate action on the part of the Security
                Insurer.

                (iii)   The execution, delivery and performance by the Security
                Insurer of the Note Policy, the Indemnification Agreement and
                the Insurance and Indemnity Agreement do not require the consent
                or approval of, the giving of notice to, the registration with,
                or the taking of any other action in respect of any state or
                other governmental agency or authority which has not previously
                been effected.

                (iv)    The Note Policy, the Indemnification Agreement and the
                Insurance and Indemnity Agreement have been duly authorized,
                executed and delivered by the Security Insurer, and constitute
                legal, valid and binding obligations of the Security Insurer,
                enforceable against the Security Insurer in accordance with
                their respective terms, except to the extent that the
                enforceability thereof may be subject to bankruptcy, insolvency,
                reorganization, conservatorship, moratorium or other similar
                laws now or hereafter in effect relating to creditors' rights as
                such laws would apply in the event of the insolvency,
                liquidation or reorganization or other similar occurrence with
                respect to the Security Insurer or the event of any moratorium
                or similar occurrence affecting the Security Insurer.

                (v)     The obligations of the Security Insurer under the Note
                Policy will rank equally with the general obligations and all
                other unsecured indebtedness of the Security Insurer outstanding
                on the Closing Date or thereafter that are not contractually
                subordinated to the payment of such obligations under the Note
                Policy.

                (vi)    The Note Policy is not required to be registered under
                the Act in connection with the offer and sale of the
                Certificates in the manner contemplated in the Prospectus.

                Such opinions may be subject to such counsel's customary
practices and limitations relating to the scope of such counsel's participation
in the preparation of the Registration Statement and the Prospectus and its
investigation or verification of information contained therein, such counsel
also shall state that it has no reason to believe that as of the Closing Date
any of the information contained in the Prospectus Supplement in (x) the
paragraph titled "The Note Policy" under the heading "Summary of Terms of the
Notes" or (y) under the captions "The Insurer" and "The Note Policy" includes
any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements therein, in the light of the

                                      -21-

<PAGE>

circumstances under which they were made, not misleading (other than financial,
numerical and statistical information contained therein as to which such counsel
need express no opinion).

                (o)     On or prior to the Closing Date there shall not have
occurred any downgrading, nor shall any notice have been given of (A) any
intended or potential downgrading or (B) any review or possible change in rating
the direction of which has not been indicated, in the rating accorded the
Security Insurer's claims paying ability by any "nationally recognized
statistical rating organization."

                (p)     Franklin Capital shall have received from the Security
Insurer a certificate, signed by the President, a senior vice president or a
vice president of the Security Insurer, dated the Closing Date, to the effect
that the signer of such certificate has carefully examined the Policy and the
related documents and that, to the best of his or her knowledge based on
reasonable investigation:

                (i)     The information in the Prospectus Supplement as of the
                date hereof under the captions "The Insurer" and "The Note
                Policy" (the "Security Insurer Information") is true and correct
                in all material respects and does not contain any untrue
                statement of a fact that is material to the Security Insurer's
                ability to perform its obligations under the Note Policy. There
                has been no material adverse change in the financial condition
                of the Security Insurer since September 30, 2001.

                (ii)    There are no actions, suits, proceedings or
                investigations pending or, to the best of the Security Insurer's
                knowledge, threatened against it at law or in equity or before
                or by any court, governmental agency, board or commission or any
                arbitrator which, if decided adversely, would materially and
                adversely affect its condition (financial or otherwise) or
                operations of it or would materially and adversely affect its
                ability to perform its obligations under the Note Policy or the
                Insurance Agreement.

                (iii)   The execution and delivery of the Insurance Agreement,
                the Indemnification Agreement and the Note Policy and the
                compliance with the terms and provisions thereof will not
                conflict with, result in a breach of, or constitute a default
                under any of the terms, provisions or conditions of, the
                Restated Charter or By-Laws of the Security Insurer, or any
                agreement, indenture or other instrument to which the Security
                Insurer is a party.

                (iv)    The issuance of the Note Policy and the execution,
                delivery and performance of the Indemnification Agreement and
                the Insurance Agreement have been duly authorized by all
                necessary corporate proceedings. No further approvals or filings
                of any kind, including, without limitation, any further
                approvals of or further filing with any governmental agency or
                other governmental authority, or any approval of the Security
                Insurer's board of directors or stockholders, are necessary for
                the Note Policy, the Indemnification Agreement and the Insurance
                Agreement to constitute the legal, valid and binding obligations
                of the Security Insurer.

                                      -22-

<PAGE>

                (q)     The Underwriter shall have received copies of each
opinion of counsel delivered to either rating agency or the Security Insurer,
together with a letter addressed to the Underwriter, dated the Closing Date, to
the effect that the Underwriter may rely on each such opinion to the same extent
as though such opinion was addressed to each as of its date.

                (r)     The Underwriter shall have received a certificate dated
the Closing Date of the Seller, executed by any two of the Chairman of the
Board, the President, any Executive Vice President, Senior Vice President or
Vice President, the Treasurer, any Assistant Treasurer, the Secretary, the
principal financial officer or the principal accounting officer of the Seller,
in which such officer shall state that, to the best of its knowledge after
reasonable investigation, (i) the representations and warranties of the Seller,
contained in this Agreement and the Basic Documents to which it is a party are
true and correct in all material respects, (ii) that the Seller, has complied
with all agreements and satisfied all conditions on its part to be performed or
satisfied under such agreements at or prior to the Closing Date, and (iii) since
the date of its incorporation, except as may be disclosed in the Prospectus or
in such certificate, no material adverse change, or any development involving a
prospective material adverse change, in or affecting particularly the business
or properties of the Trust, Franklin Capital or the Seller, has occurred.

                (s)     The Underwriter shall have received a certificate dated
the Closing Date of Franklin Capital, executed by any two of the Chairman of the
Board, the President, any Executive Vice President, Senior Vice President or
Vice President, the Treasurer, any Assistant Treasurer, the Secretary, the
principal financial officer or the principal accounting officer of Franklin
Capital in which such officer shall state that, to the best of its knowledge
after reasonable investigation, (i) the representations and warranties of
Franklin Capital contained in this Agreement, the Loan Purchase Agreement and
the Sale and Servicing Agreement are true and correct in all material respects,
(ii) that Franklin Capital has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied under such agreements at or
prior to the Closing Date and (iii) since December 31, 2000, except as may be
disclosed in the Prospectus or in such certificate, no material adverse change,
or any development involving a prospective material adverse change, in or
affecting particularly the business or properties of the Trust, Franklin Capital
or the Seller, has occurred.

                (t)     The Underwriter shall have received evidence
satisfactory to it and counsel for the Underwriter that, on or before the
Closing Date, UCC-1 financing statements shall have been submitted to the Owner
Trustee or Trustee, as the case may be, for filing in the appropriate filing
offices reflecting (1) the transfer of the interest in the Receivables, certain
other property and the proceeds thereof (A) from Franklin Capital to the Seller
and (B) from the Seller to the Trust, and (2) the grant of the security interest
by the Trust in the Receivables, certain other property and the proceeds thereof
to the Trustee.

                (u)     The Class A-1 Notes shall be rated "A-1+" or its
equivalent, in each case by Moody's and S&P and the Class A-2 Notes, Class A-3
Notes and Class A-4 Notes shall be rated "AAA" or its equivalent, in each case
by Moody's and S&P and neither corporation shall have placed the Notes under
surveillance or review with possible negative implications.

                                      -23-

<PAGE>

                The Seller will provide or cause to be provided to the
Underwriter such conformed copies of such of the foregoing opinions,
certificates, letters and documents as the Underwriter shall reasonably request.

                7.      Indemnification and Contribution.

                (a)     The Seller and Franklin Capital, jointly and severally,
agree to indemnify and hold harmless the Underwriter against any and all losses,
claims, damages or liabilities, joint or several, or any action in respect
thereof (including but not limited to, any loss, claim, damage or liability (or
action relating to purchases and sales of the Notes)), to which the Underwriter
may become subject, under the Act, the Exchange Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained or incorporated in the Registration Statement,
the Prospectus, or any amendment or supplement thereto, or any related
preliminary prospectus, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
in which they were made, not misleading, and will reimburse the Underwriter for
any legal or other expenses reasonably incurred by the Underwriter in connection
with investigating or defending any such loss, claim, damage, liability or
action as such expenses are incurred; provided, however, that neither the Seller
                                      --------  -------
nor Franklin Capital shall be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement in or omission or alleged omission from
any of such documents in reliance upon and in conformity with the Underwriter's
Information.

                (b)     The Underwriter agrees to indemnify and hold harmless
the Seller and Franklin Capital against any losses, claims, damages or
liabilities to which the Seller or Franklin Capital may become subject, under
the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of any material fact contained
or incorporated in the Registration Statement, the Prospectus, or any amendment
or supplement thereto or any related preliminary prospectus, or arise out of or
are based upon the omission or the alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was
made in reliance upon and in conformity with the Underwriter's Information, and
will reimburse any legal or other expenses reasonably incurred by Franklin
Capital or the Seller in connection with investigating or defending any such
loss, claim, damage, liability or action as such expenses are incurred.

                (c)     Promptly after receipt by an indemnified party under
this Section of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under subsection (a) or (b) above, notify the indemnifying party of the
commencement thereof; but the omission to so notify the indemnifying party will
not relieve it from any liability which it may have to any indemnified party
under subsection (a) or (b) above, except to the extent it has been materially
prejudiced by such failure and, provided further, that the failure to notify any
indemnifying party shall not relieve it from

                                      -24-

<PAGE>

any liability which it may have to any indemnified party otherwise than under
this Section. In case any such action is brought against any indemnified party
and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and to the extent
that it may wish to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (which counsel may be counsel to the
indemnifying party, if such counsel is otherwise satisfactory to such
indemnified party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, except to
the extent provided in the next following paragraph, the indemnifying party will
not be liable to such indemnified party under this Section for any legal or
other expenses subsequently incurred by such indemnified party in connection
with the defense thereof other than reasonable costs of investigation.

        Any indemnified party shall have the right to employ separate counsel
in any such action and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such indemnified party
unless: (i) the employment thereof has been specifically authorized by the
indemnifying party in writing; (ii) such indemnified party shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
indemnifying party and in the reasonable judgment of such counsel it is
advisable for such indemnified party to employ separate counsel; or (iii) the
indemnifying party has failed to assume the defense of such action and employ
counsel reasonably satisfactory to the indemnified party, in which case, if such
indemnified party notifies the indemnifying party in writing that it elects to
employ separate counsel at the expense of the indemnifying party, the
indemnifying party shall not have the right to assume the defense of such action
on behalf of such indemnified party, it being understood, however, the
indemnifying party shall not, in connection with any one such action or separate
but substantially similar or related actions arising out of the same general
allegations or circumstances, be liable for the reasonable fees and expenses of
more than one separate firm of attorneys (in addition to local counsel) at any
time for all such indemnified parties, which firm shall be designated in writing
by the Underwriter, if the indemnified parties under this Section 7 consist of
the Underwriter, or by the Seller and Franklin Capital, if the indemnified
parties under this Section 7 consist of the Seller and Franklin Capital.

        Each indemnified party, as a condition of the indemnity agreements
contained in Section 7 (a) and (b) hereof, shall use its best efforts to
cooperate with the indemnifying party in the defense of any such action or
claim. No indemnifying party shall be liable for any settlement of any such
action effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with its written consent or if there be a
final judgment for the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any
loss or liability by reason of such settlement or judgment.

                (d)     If the indemnification provided for in this Section is
unavailable or insufficient to hold harmless the indemnified party under
subsection (a) or (b) above then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in subsection (a) or (b) above (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Seller and Franklin Capital on the one hand and the Underwriter on the other
from the offering of the Notes or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law or if the

                                      -25-

<PAGE>

indemnified party failed to give the notice required under subsection (c) above,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Seller or
Franklin Capital on the one hand and the Underwriter on the other in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities as well as any other relevant equitable considerations. The
relative benefits received by the Seller and Franklin Capital on the one hand
and the Underwriter on the other shall be deemed to be in such proportion that
the Underwriter shall be responsible for that portion represented by the
underwriting discounts and commissions received by the Underwriter (the
"Spread") and the Seller and Franklin Capital shall be responsible for the total
proceeds from the offering of the Notes (before deducting expenses). The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Seller or Franklin Capital or the Underwriter and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. The Seller, Franklin Capital and the Underwriter
agree that it would not be just and equitable if contributions pursuant to this
subsection (f) were to be determined by pro rata allocation or by any other
method of allocation which does not take into account the equitable
considerations referred to herein.

        The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection (d) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any action or claim which is the subject of this subsection (d). Notwithstanding
the provisions of this subsection (d), in no case shall the Underwriter be
responsible for any amount (not including the fees and expenses of its counsel)
in excess of the Spread received by the Underwriter, as set forth on the cover
page of the Prospectus. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

                (e)     The obligations of the Seller and Franklin Capital under
this Section shall be in addition to any liability which the Seller and Franklin
Capital may otherwise have and shall extend, upon the same terms and conditions,
to each person, if any, who controls the Underwriter within the meaning of the
Act or the Exchange Act. The obligations of the Underwriter shall be in addition
to any liability which the Underwriter may otherwise have and shall extend, upon
the same terms and conditions, to each director of the Seller, and each of its
officers that signed the Registration Statement.

                (f)     The Underwriter confirms that the information set forth
under the caption "Underwriting" in the Prospectus Supplement (the
"Underwriter's Information") is correct and constitutes the only information
furnished in writing to the Seller by or on behalf of the Underwriter
specifically for inclusion in the Registration Statement and the Prospectus.

                8.      Survival of Representations and Obligations. The
                        -------------------------------------------
respective indemnities, agreements, representations, warranties and other
statements of the Seller or its officers and of the Underwriter set forth in or
made pursuant to this Agreement or contained in certificates of officers of the
Seller submitted pursuant hereto shall remain operative and in full force and
effect, regardless of any investigation or statement as to the results thereof,
made by or on behalf

                                      -26-

<PAGE>

of the Underwriter, the Seller or any of their respective representatives,
officers or directors or any controlling person, and will survive delivery of
and payment for the Notes. If for any reason the purchase of the Notes by the
Underwriter is not consummated, Franklin Capital shall remain responsible for
the expenses to be paid or reimbursed by Franklin Capital pursuant to Section
5(m) (other than clause (vi) thereof in the case of a failure by the Underwriter
to comply with its obligations hereunder) and the respective obligations of the
Seller, Franklin Capital and the Underwriter pursuant to Section 7 shall remain
in effect. If for any reason the purchase of the Notes by the Underwriter is not
consummated (other than because of (a) a failure by the Underwriter to comply
with its obligations hereunder or (b) a failure to satisfy the conditions set
forth in items (i)(y), (iii), (v) and (vi) of Section 6(c)), Franklin Capital
will reimburse the Underwriter for all out-of-pocket expenses reasonably
incurred by it in connection with the offering of the Notes.

                9.      Notices. Any written request, demand, authorization,
                        -------
direction, notice, consent or waiver shall be personally delivered or mailed
certified mail, return receipt requested (or in the form of telex or facsimile
notice, followed by written notice as aforesaid) and shall be deemed to have
been duly given upon receipt, if sent to the Underwriter, when delivered to the
Underwriter at 390 Greenwich Street, New York, New York 10013, Attention: Paul
Humphrey (fax # (212) 723-8591), if sent to Franklin Capital when delivered to
47 West 200 South, Suite 500, Salt Lake City, UT 84101, Attention: Harold E.
Miller, Jr (Fax # (801) 236-2685), with a copy to Franklin Resources, Inc., One
Franklin Parkway, San Mateo, California 94403 Attention: General Counsel and if
sent to the Seller when delivered to 47 West 200 South, Suite 500, Salt Lake
City, UT 84101, Attention: Harold E. Miller, Jr (Fax # (801) 236-2685), with a
copy to Franklin Resources, Inc., One Franklin Parkway, San Mateo, California
94403, Attention: General Counsel.

                10.     Successors.  This Agreement shall inure to the benefit
                        ----------
of and be binding upon the parties hereto and their respective successors and
the officers and directors and controlling persons referred to in Section 7, and
no other person will have any right or obligations hereunder.

                11.     Counterparts.  This Agreement may be executed in any
                        ------------
number of counterparts, each of which shall be deemed to be an original, but all
such counterparts shall together constitute one and the same Agreement.

                12.     Applicable Law.  This Agreement shall be governed by,
                        --------------
and construed in accordance with, the laws of the State of New York without
regard to the choice of law provisions thereof.

                                      -27-

<PAGE>


                If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us one of the counterparts hereof,
whereupon it will become a binding agreement among the Seller, Franklin Capital
and the Underwriter in accordance with its terms.

                                Very truly yours,

                                 FRANKLIN RECEIVABLES LLC

                                 By: FRANKLIN CAPITAL CORPORATION,
                                     its managing member


                                 By: _________________________________
                                     Name:
                                     Title:

                                 FRANKLIN CAPITAL CORPORATION


                                 By: _________________________________
                                     Name:
                                     Title:

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

SALOMON SMITH BARNEY INC.


By: _______________________________
    Name:
    Title:

                                      -28-

<PAGE>

                                   SCHEDULE I

                                     OFFICES

Franklin Capital Corporation        Utah Department of Commerce, Division of
                                    Corporations and Commercial Code

Franklin Receivables LLC            Secretary of State of the State of Delaware

Franklin Auto Trust 2001-2          Secretary of State of the State of Delaware

<PAGE>


                                   SCHEDULE II
<TABLE>
<CAPTION>
-------------------- ------------------ ----------------- ------------------ --------------- ----------------- ------------
                         Original
                         Principal            Investor          Investor
Security                 Balance $             Price             Price $           Price           Price $       Rate
-------------------- ------------------ ----------------- ------------------ --------------- ----------------- ------------
<S>                  <C>                <C>               <C>                <C>             <C>               <C>
Class A-1 Notes        55,000,000.00         100.000000%       55,000000.00      99.810000%     54,895,500.00    2.10375%
-------------------- ------------------ ----------------- ------------------ --------------- ----------------- ------------
Class A-2 Notes        74,500,000.00          99.997245%      74,497,947.38      99.772245%     74,330,322.38    2.79%
-------------------- ------------------ ----------------- ------------------ --------------- ----------------- ------------
Class A-3 Notes        91,000,000.00          99.995555%      90,995,955.32      99.740555%     90,763,905.32    3.77%
-------------------- ------------------ ----------------- ------------------ --------------- ----------------- ------------
Class A-4 Notes        79,500,000.00          99.982699%      79,486,246.02      99.672699%     79,239,796.02    4.55%
-------------------- ------------------ ----------------- ------------------ --------------- ----------------- ------------
</TABLE>

Total Price to Public:     $299,980,148.72
Total Price to Seller:     $299,229,523.72
Underwriting Discounts
and Commissions:           $    750,625.00



<PAGE>

                                    EXHIBIT A