Document:

EXHIBIT 4.2

                                 TRUST AGREEMENT

                                     BETWEEN

                         CAPITAL AUTO RECEIVABLES, INC.
                                     SELLER

                                       AND

                            BANKERS TRUST (DELAWARE)
                                  OWNER TRUSTEE

                            DATED AS OF JUNE 26, 2001

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                                TABLE OF CONTENTS

                                                                                                             Page

ARTICLE I

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        DEFINITIONS AND INCORPORATION BY REFERENCE.............................................................1
                  Section 1.1      Definitions.................................................................1

ARTICLE II

        ORGANIZATION...........................................................................................1
                  Section 2.1      Name........................................................................1
                  Section 2.2      Office......................................................................1
                  Section 2.3      Purposes and Powers.........................................................1
                  Section 2.4      Appointment of Owner Trustee................................................2
                  Section 2.5      Initial Capital Contribution of Owner Trust Estate..........................2
                  Section 2.6      Declaration of Trust........................................................3
                  Section 2.7      Liability of the Certificateholders.........................................3
                  Section 2.8      Title to Trust Property.....................................................3
                  Section 2.9      Situs of Trust..............................................................3
                  Section 2.10     Representations and Warranties of the Seller................................3
                  Section 2.11     Tax Treatment...............................................................4

ARTICLE III

        THE CERTIFICATES.......................................................................................4
                  Section 3.1      Initial Certificate Ownership...............................................4
                  Section 3.2      Form of the Certificates....................................................5
                  Section 3.3      Execution, Authentication and Delivery......................................5
                  Section 3.4      Registration; Registration of Transfer and Exchange of Certificates.........5
                  Section 3.5      Mutilated, Destroyed, Lost or Stolen Certificates...........................6
                  Section 3.6      Persons Deemed Certificateholders...........................................7
                  Section 3.7      Access to List of Certificateholders' Names and Addresses...................7
                  Section 3.8      Maintenance of Corporate Trust Office.......................................8
                  Section 3.9      Appointment of Paying Agent.................................................8
                  Section 3.10     [Reserved]..................................................................9
                  Section 3.11     Book-Entry Certificates.....................................................9
                  Section 3.12     Notices to Clearing Agency.................................................10
                  Section 3.13     Definitive Certificates....................................................10
                  Section 3.14     Seller as Certificateholder................................................10

                                      - i -
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ARTICLE IV

        ACTIONS BY OWNER TRUSTEE..............................................................................10
                  Section 4.1      Prior Notice to Certificateholders with Respect to Certain Matters.........10
                  Section 4.2      Action by Certificateholders with Respect to Certain
                                   Matters....................................................................11
                  Section 4.3      Action by Certificateholders with Respect to Bankruptcy....................11
                  Section 4.4      Restrictions on Certificateholders' Power..................................11
                  Section 4.5      Majority Control...........................................................12

ARTICLE V

        APPLICATION OF TRUST FUNDS; CERTAIN DUTIES............................................................12
                  Section 5.1      Establishment of Certificate Distribution Account..........................12
                  Section 5.2      Application of Trust Funds.................................................13
                  Section 5.3      Method of Payment..........................................................14
                  Section 5.4      Accounting and Reports to the Certificateholders, the Internal
                                   Revenue Service and Others.................................................14
                  Section 5.5      Signature on Returns; Other Tax Matters....................................14

ARTICLE VI

        THE OWNER TRUSTEE.....................................................................................15
                  Section 6.1      Duties of Owner Trustee....................................................15
                  Section 6.2      Rights of Owner Trustee....................................................16
                  Section 6.3      Acceptance of Trusts and Duties............................................16
                  Section 6.4      Action upon Instruction by Certificateholders..............................18
                  Section 6.5      Furnishing of Documents....................................................18
                  Section 6.6      Representations and Warranties of Owner Trustee............................18
                  Section 6.7      Reliance; Advice of Counsel................................................19
                  Section 6.8      Owner Trustee May Own Certificates and Notes...............................20
                  Section 6.9      Compensation and Indemnity.................................................20
                  Section 6.10     Replacement of Owner Trustee...............................................20
                  Section 6.11     Merger or Consolidation of Owner Trustee...................................21
                  Section 6.12     Appointment of Co-Trustee or Separate Trustee..............................22
                  Section 6.13     Eligibility Requirements for Owner Trustee.................................23

ARTICLE VII

        TERMINATION OF TRUST AGREEMENT........................................................................23
                  Section 7.1      Termination of Trust Agreement.............................................23

                                     - ii -

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ARTICLE VIII

        AMENDMENTS............................................................................................25
                  Section 8.1      Amendments Without Consent of Certificateholders or
                                   Noteholders................................................................25
                  Section 8.2      Amendments With Consent of Certificateholders and
                                   Noteholders................................................................25
                  Section 8.3      Form of Amendments.........................................................26

ARTICLE IX

        MISCELLANEOUS.........................................................................................26
                  Section 9.1      No Legal Title to Owner Trust Estate.......................................26
                  Section 9.2      Limitations on Rights of Others............................................26
                  Section 9.3      Derivative Actions.........................................................27
                  Section 9.4      Notices....................................................................27
                  Section 9.5      Severability...............................................................27
                  Section 9.6      Counterparts...............................................................27
                  Section 9.7      Successors and Assigns.....................................................27
                  Section 9.8      No Petition................................................................27
                  Section 9.9      No Recourse................................................................28
                  Section 9.10     Headings...................................................................28
                  Section 9.11     Governing Law..............................................................28
                  Section 9.12     [Reserved].................................................................28
                  Section 9.13     Indemnification by and Reimbursement of the Servicer.......................28
                  Section 9.14      Effect of Amendment and Restatement.......................................29

                                    EXHIBITS

Exhibit A   Form of Certificate
Exhibit B   Form of Certificate of Trust
Exhibit C   Undertaking Letter

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                                     - iii -
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     TRUST  AGREEMENT,   dated  as  of  June  26,  2001,  between  CAPITAL  AUTO
RECEIVABLES,  INC.,  a  Delaware  corporation,  as  Seller,  and  BANKERS  TRUST
(DELAWARE), a Delaware banking corporation, as Owner Trustee.

     WHEREAS,  the  Seller  and  Owner  Trustee  entered  into a  certain  trust
agreement  dated  June  15,  2001  (the  "Original  Trust   Agreement"),   which
contemplated this Trust Agreement.

     WHEREAS,  the  Seller  and the  Owner  Trustee  desire  hereby to amend and
restate the Original Trust Agreement in its entirety.

     NOW THEREFORE, the Seller and the Owner Trustee hereby agree as follows:

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.1 Definitions.  Certain  capitalized terms used in this Agreement
shall have the respective  meanings  assigned to them in Part I of Appendix A to
the Trust Sale and Servicing Agreement of even date herewith,  among the Seller,
the  Servicer  and the Trust (the "Trust  Sale and  Servicing  Agreement").  All
references  herein to "the  Agreement"  or "this  Agreement"  are to this  Trust
Agreement,  and all references herein to Articles,  Sections and subsections are
to  Articles,  Sections  and  subsections  of this  Agreement  unless  otherwise
specified. The rules of construction set forth in Part II of such Appendix shall
be applicable to this Agreement.

                                   ARTICLE II

                                  ORGANIZATION

     Section 2.1 Name.  The Trust created hereby shall be known as "Capital Auto
Receivables  Asset Trust 2001-2" in which name the Owner Trustee may conduct the
business  of the Trust,  make and execute  contracts  and other  instruments  on
behalf  of the  Trust  and sue and be sued on  behalf  of the  Trust.  The Owner
Trustee is hereby  authorized to file the  Certificate of Trust on behalf of the
Trust pursuant to Section 3810(a) of the Business Trust Statute.

     Section 2.2  Office.  The office of the Trust shall be in care of the Owner
Trustee at the  Corporate  Trust Office or at such other  address in Delaware as
the Owner Trustee may designate by written notice to the  Certificateholders and
the Seller.

     Section 2.3 Purposes and Powers. The purpose of the Trust is, and the Trust
shall have the power and authority, to engage in the following activities:

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          (i) to acquire, manage and hold the Receivables;

          (ii) to issue the Notes pursuant to the Indenture and the Certificates
     pursuant to this Agreement, and to sell, transfer or exchange the Notes and
     the Certificates;

          (iii) to acquire certain  property and assets from the Seller pursuant
     to the  Trust  Sale  and  Servicing  Agreement,  to  make  payments  to the
     Noteholders  and  the   Certificateholders,   to  make  deposits  into  and
     withdrawals  from  the  Reserve  Account  and  to pay  the  organizational,
     start-up and transactional expenses of the Trust;

          (iv) to assign, grant, transfer, pledge, mortgage and convey the Trust
     Estate  pursuant  to the terms of the  Indenture  and to hold,  manage  and
     distribute  to  the  Certificateholders  pursuant  to  the  terms  of  this
     Agreement  and the Trust Sale and  Servicing  Agreement  any portion of the
     Trust Estate  released from the lien of, and remitted to the Trust pursuant
     to, the Indenture;

          (v) to enter into and perform its  obligations and exercise its rights
     under the Basic Documents to which it is to be a party;

          (vi)  to  engage  in  those   activities,   including   entering  into
     agreements,  that are  necessary,  suitable or convenient to accomplish the
     foregoing  or are  incidental  thereto or  connected  therewith,  including
     entering  into   interest   rate  swaps  and  caps  and  other   derivative
     instruments; and

          (vii) subject to  compliance  with the Basic  Documents,  to engage in
     such other activities as may be required in connection with conservation of
     the  Owner   Trust   Estate  and  the  making  of   distributions   to  the
     Certificateholders and the Noteholders.

The Trust shall not engage in any  activity  other than in  connection  with the
foregoing or other than as required or authorized by the terms of this Agreement
or the Basic Documents.

     Section 2.4  Appointment of Owner Trustee.  The Seller hereby  appoints the
Owner Trustee as trustee of the Trust  effective as of the date hereof,  to have
all the rights, powers and duties set forth herein.

     Section 2.5 Initial Capital  Contribution of Owner Trust Estate. The Seller
hereby sold, assigned, transferred,  conveyed and set over to the Owner Trustee,
as of June 15,  2001,  the sum of $1.  The  Owner  Trustee  hereby  acknowledges
receipt  in  trust  from  the  Seller,  as of June 15,  2001,  of the  foregoing
contribution, which constituted the initial Owner Trust Estate and was deposited
in the Certificate  Distribution  Account.  The Seller shall pay  organizational
expenses of

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the Trust as they may arise or shall,  upon the  request  of the Owner  Trustee,
promptly  reimburse  the Owner  Trustee for any such  expenses paid by the Owner
Trustee.

     Section 2.6 Declaration of Trust. The Owner Trustee hereby declares that it
shall hold the Owner Trust  Estate in trust upon and  subject to the  conditions
set forth herein for the use and benefit of the Certificate  Owners,  subject to
the obligations of the Trust under the Basic  Documents.  It is the intention of
the parties hereto that the Trust constitute a business trust under the Business
Trust Statute,  that this Agreement  constitute the governing instrument of such
business  trust and that the  Certificates  represent the  beneficial  interests
therein. The rights of the  Certificateholders  shall be determined as set forth
herein and in the  Business  Trust  Statute  and the  relationship  between  the
parties hereto created by this Agreement shall not constitute  indebtedness  for
any purpose.  Effective as of the date hereof,  the Owner Trustee shall have all
rights,  powers and duties set forth  herein and in the Business  Trust  Statute
with respect to accomplishing the purposes of the Trust.

     Section 2.7  Liability of the  Certificateholders.  Certificateholders  and
holders of beneficial interests therein shall be entitled to the same limitation
of personal  liability  extended to  stockholders  of private  corporations  for
profit organized under the Delaware General Corporation Law.

     Section  2.8 Title to Trust  Property.  Legal  title to all the Owner Trust
Estate  shall be vested at all times in the  Trust as a  separate  legal  entity
except where  applicable law in any  jurisdiction  requires title to any part of
the Owner  Trust  Estate to be vested in a trustee  or  trustees,  in which case
title shall be deemed to be vested in the Owner Trustee,  a co-trustee  and/or a
separate trustee, as the case may be.

     Section 2.9 Situs of Trust.  The Trust shall be located and administered in
the States of Delaware or New York.  All bank  accounts  maintained by the Owner
Trustee on behalf of the Trust  shall be located in the State of Delaware or the
State of New York.  The Trust  shall not have any  employees  in any state other
than Delaware; provided, however, that nothing herein shall restrict or prohibit
the Owner Trustee from having employees within or without the State of Delaware.
Payments  shall be  received  by the Trust  only in  Delaware  or New York,  and
payments  will be made by the Trust  only from  Delaware  or New York.  The only
office of the Trust shall be the Corporate Trust Office in Delaware.

     Section  2.10  Representations  and  Warranties  of the Seller.  The Seller
hereby represents and warrants to the Owner Trustee that:

          (a) The Seller has been duly  organized  and is validly  existing as a
     corporation in good standing under the laws of the State of Delaware,  with
     power and  authority to own its  properties  and to conduct its business as
     such  properties  are  presently  owned  and  such  business  is  presently
     conducted and had at all relevant times, and now has, power,  authority and
     legal right to acquire and own the Receivables.

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          (b)  The  Seller  is  duly  qualified  to  do  business  as a  foreign
     corporation in good standing,  and has obtained all necessary  licenses and
     approvals in all  jurisdictions in which the ownership or lease of property
     or the conduct of its business requires such qualifications.

          (c) The Seller has the power and authority to execute and deliver this
     Agreement  and to carry  out its  terms,  the  Seller  has full  power  and
     authority  to sell and assign the  property to be sold and  assigned to and
     deposited  with the  Issuer as part of the Trust  and the  Seller  has duly
     authorized  such  sale  and  assignment  to the  Issuer  by  all  necessary
     corporate  action;  and the  execution,  delivery and  performance  of this
     Agreement  have  been  duly  authorized  by the  Seller  by  all  necessary
     corporate action.

          (d)  The  consummation  of  the  transactions   contemplated  by  this
     Agreement  and  the  fulfillment  of the  terms  of this  Agreement  do not
     conflict  with,  result in any breach of any of the terms and provisions of
     or constitute  (with or without  notice or lapse of time) a default  under,
     the  certificate  of  incorporation  or  by-laws  of  the  Seller,  or  any
     indenture,  agreement or other instrument to which the Seller is a party or
     by which it is bound,  or result in the creation or  imposition of any Lien
     upon any of its  properties  pursuant  to the terms of any such  indenture,
     agreement or other instrument (other than pursuant to the Basic Documents),
     or violate any law or, to the best of the  Seller's  knowledge,  any order,
     rule or regulation  applicable to the Seller of any court or of any federal
     or state  regulatory  body,  administrative  agency  or other  governmental
     instrumentality   having  jurisdiction  over  the  Seller  or  any  of  its
     properties.

     Section 2.11 Tax Treatment.  The Seller and the Owner Trustee,  by entering
into this Agreement,  and the Certificateholders,  by acquiring any Certificates
or interest  therein,  (i) express their  intention that the  Certificates  will
qualify as equity interests in either (A) a division of the Seller, or any other
single Person,  disregarded as a separate entity for federal income tax purposes
if all Certificates are owned solely by the Seller or by such single Person,  or
(B) as a partnership  for federal  income tax purposes if the  Certificates  are
owned by more  than  one  Person  and  (ii)  unless  otherwise  required  by the
appropriate  taxing  authorities,  agree to treat  the  Certificates  as  equity
interests  in an entity as  described in clause (i) of this Section 2.11 for the
purposes of federal income taxes, I state and local income and franchise  taxes,
Michigan single business tax, and any other taxes imposed upon,  measured by, or
based upon  gross or net  income.  The  parties  agree  that,  unless  otherwise
required by  appropriate  tax  authorities,  the Trust shall file or cause to be
filed annual or other necessary returns, reports and other forms consistent with
such characterization of the Trust for such tax purposes.

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                                   ARTICLE III

                                THE CERTIFICATES

     Section 3.1 Initial Certificate Ownership.  Upon the formation of the Trust
by the contribution by the Seller pursuant to Section 2.5 and until the issuance
of the Certificates, the Seller shall be the sole Certificateholder.

     Section 3.2 Form of the Certificates.

     (a) The  Certificates  shall be  substantially  in the  form  set  forth in
Exhibit A and shall be issued in minimum  denominations  of $20,000 and integral
multiples of $1,000 in excess thereof;  provided,  however, that one Certificate
may  be  issued  in a  denomination  that  includes  any  residual  amount.  The
Certificates  shall represent the entire  beneficial  interest in the Trust. The
Certificates  shall be  executed  on behalf of the Trust by manual or  facsimile
signature of a Responsible  Officer of the Owner Trustee.  Certificates  bearing
the manual or facsimile  signatures  of  individuals  who were, at the time when
such  signatures  shall have been  affixed,  authorized to sign on behalf of the
Trust, shall be duly issued, fully paid and non-assessable  beneficial interests
in the Trust,  notwithstanding  that such  individuals or any of them shall have
ceased to be so  authorized  prior to the  authentication  and  delivery of such
Certificates  or did not hold such  offices  at the date of  authentication  and
delivery of such Certificates.

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

     (c) The Certificates shall be issued in fully-registered form. The terms of
the Certificates set forth in Exhibit A shall form part of this Agreement.

     Section 3.3 Execution,  Authentication and Delivery.  Concurrently with the
sale of the  Receivables  to the Trust  pursuant to the Trust Sale and Servicing
Agreement,  the Owner  Trustee  shall  cause the  Certificates  in an  aggregate
principal  amount  equal to the  initial  Certificate  Balance to be executed on
behalf of the Trust, authenticated and delivered to or upon the written order of
the Seller,  signed by its  chairman  of the board,  its  president  or any vice
president,  without  further  corporate  action  by the  Seller,  in  authorized
denominations. No Certificate shall entitle its holder to any benefit under this
Agreement,  or shall be valid for any purpose, unless there shall appear on such
Certificate a certificate of authentication  substantially in the form set forth
in Exhibit A,  executed by the Owner Trustee or Bankers  Trust  Company,  as the
Owner Trustee's  authenticating agent, by manual signature.  Such authentication
shall constitute  conclusive evidence that such Certificate shall have been duly
authenticated and delivered hereunder.  All Certificates shall be dated the date
of their authentication.

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     Section  3.4  Registration;   Registration  of  Transfer  and  Exchange  of
Certificates.

     (a) The Certificate Registrar shall keep or cause to be kept, at the office
or agency maintained  pursuant to Section 3.8, a Certificate  Register in which,
subject to such  reasonable  regulations as it may prescribe,  the Owner Trustee
shall  provide  for  the  registration  of  Certificates  and of  transfers  and
exchanges  of  Certificates  as  provided  herein;  provided,  however,  that no
Certificate   may  be  subdivided  upon  transfer  or  exchange  such  that  the
denomination  of any resulting  Certificate is less than $20,000.  Bankers Trust
Company shall be the initial  Certificate  Registrar.  Upon any resignation of a
Certificate Registrar,  the Owner Trustee shall promptly appoint a successor or,
if it elects not to make such an  appointment,  assume the duties of Certificate
Registrar.

     (b) Upon surrender for  registration  of transfer of any Certificate at the
office or agency  maintained  pursuant to Section 3.8, the Owner  Trustee  shall
execute on behalf of the Trust, authenticate and deliver (or shall cause Bankers
Trust Company as its authenticating  agent to authenticate and deliver),  in the
name of the designated  transferee or transferees,  one or more new Certificates
in  authorized  denominations  of a like  aggregate  amount  dated  the  date of
authentication by the Owner Trustee or any authenticating agent.

     (c) At the  option of a Holder,  Certificates  may be  exchanged  for other
Certificates of authorized  denominations  of a like aggregate  principal amount
upon surrender of the Certificates to be exchanged at the Corporate Trust Office
maintained pursuant to Section 3.8. Whenever any Certificates are so surrendered
for  exchange,  the  Owner  Trustee  shall  execute  on  behalf  of  the  Trust,
authenticate   and  deliver  (or  shall  cause  Bankers  Trust  Company  as  its
authenticating agent to authenticate and deliver) one or more Certificates dated
the date of  authentication  by the Owner Trustee or any  authenticating  agent.
Such Certificates shall be delivered to the Holder making the exchange.

     (d) Every Certificate presented or surrendered for registration of transfer
or exchange  shall be  accompanied  by a written  instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the Holder or his attorney duly  authorized in writing and such other  documents
and  instruments  as  may  be  required  by  Section  3.4(b).  Each  Certificate
surrendered  for  registration  of transfer or  exchange  shall be canceled  and
subsequently  destroyed  or  otherwise  disposed  of by  the  Owner  Trustee  or
Certificate Registrar in accordance with its customary practice.

     (e) The Owner Trustee or the Certificate Registrar may require payment of a
sum sufficient to cover any tax or  governmental  charge that may be imposed and
any other  expenses  of the Owner  Trustee in  connection  with any  transfer or
exchange of Certificates.

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     Section 3.5 Mutilated, Destroyed, Lost or Stolen Certificates.

     (a) If (i) any mutilated  Certificate  is  surrendered  to the  Certificate
Registrar, or the Certificate Registrar receives evidence to its satisfaction of
the destruction,  loss or theft of any Certificate,  and (ii) there is delivered
to the Certificate  Registrar,  the Owner Trustee and the Trust such security or
indemnity as may be required by them to hold each of them harmless, then, in the
absence of notice to the  Certificate  Registrar or the Owner  Trustee that such
Certificate has been acquired by a protected purchaser,  the Owner Trustee shall
execute  on behalf of the Trust and the Owner  Trustee  shall  authenticate  and
deliver (or shall cause  Bankers Trust  Company as its  authenticating  agent to
authenticate  and  deliver),  in exchange for or in lieu of any such  mutilated,
destroyed,  lost or stolen Certificate,  a replacement Certificate in authorized
denominations of a like aggregate principal amount;  provided,  however, that if
any such destroyed, lost or stolen Certificate, but not a mutilated Certificate,
shall have become or within seven days shall be due and payable, then instead of
issuing a replacement Certificate the Owner Trustee may pay such destroyed, lost
or stolen Certificate when so due or payable.

     (b) If,  after the  delivery  of a  replacement  Certificate  or payment in
respect of a destroyed, lost or stolen Certificate pursuant to Section 3.5(a), a
protected  purchaser  of  the  original   Certificate  in  lieu  of  which  such
replacement   Certificate   was  issued   presents  for  payment  such  original
Certificate,  the Owner  Trustee  shall be entitled to recover such  replacement
Certificate  (and any  distributions  or payments made with respect  thereto) or
such payment from the Person to whom it was  delivered or any Person taking such
replacement  Certificate from such Person to whom such  replacement  Certificate
was delivered or any assignee of such Person, except a protected purchaser,  and
shall be entitled to recover upon the security or indemnity provided therefor to
the extent of any loss, damage, cost or expense incurred by the Owner Trustee in
connection therewith.

     (c) In connection  with the issuance of any replacement  Certificate  under
this  Section  3.5,  the Owner  Trustee may require the payment by the Holder of
such  Certificate  of a sum  sufficient  to cover any tax or other  governmental
charge that may be imposed in relation thereto and any other reasonable expenses
(including  the fees and  expenses  of the  Owner  Trustee  and the  Certificate
Registrar) connected therewith.

     (d) Any  duplicate  Certificate  issued  pursuant  to this  Section  3.5 in
replacement  of any  mutilated,  destroyed,  lost or  stolen  Certificate  shall
constitute an original additional  beneficial interest in the Trust,  whether or
not the mutilated,  destroyed,  lost or stolen Certificate shall be found at any
time or be enforced by anyone, and shall be entitled to all the benefits of this
Agreement equally and  proportionately  with any and all other Certificates duly
issued hereunder.

     (e) The provisions of this Section 3.5 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Certificates.

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     Section 3.6 Persons Deemed Certificateholders. Prior to due presentation of
a Certificate for registration of transfer, the Owner Trustee or the Certificate
Registrar may treat the Person in whose name any Certificate shall be registered
in the Certificate Register as the Certificateholder of such Certificate for the
purpose  of  receiving  distributions  pursuant  to  Article V and for all other
purposes whatsoever, and neither the Owner Trustee nor the Certificate Registrar
shall be affected by any notice to the contrary.

     Section 3.7 Access to List of Certificateholders'  Names and Addresses. The
Owner  Trustee  shall  furnish or cause to be  furnished to the Servicer and the
Seller,  within 15 days after receipt by the Owner Trustee of a request therefor
from the Servicer or the Seller in writing, a list of the names and addresses of
the  Certificateholders  as of the most recent  Record  Date.  Each  Holder,  by
receiving and holding a Certificate,  shall be deemed to have agreed not to hold
any of the Servicer,  the Seller or the Owner Trustee  accountable  by reason of
the disclosure of its name and address, regardless of the source from which such
information was derived.

     Section 3.8 Maintenance of Corporate Trust Office.  The Owner Trustee shall
maintain in the Borough of Manhattan, the City of New York, an office or offices
or agency or agencies where  Certificates may be surrendered for registration of
transfer or exchange and where  notices and demands to or upon the Owner Trustee
in respect of the Certificates and the Basic Documents may be served.  The Owner
Trustee initially  designates the offices of Bankers Trust Company,  Four Albany
Street, New York, New York 10006, as its principal office for such purposes. The
Owner  Trustee  shall  give  prompt  written  notice  to the  Seller  and to the
Certificateholders  of any change in the location of the Certificate Register or
any such office or agency.

     Section 3.9  Appointment of Paying Agent.  Except as otherwise  provided in
Section  5.2, the Paying Agent shall make  distributions  to  Certificateholders
from the  Certificate  Distribution  Account  pursuant  to Section 5.2 and shall
report the amounts of such  distributions to the Owner Trustee and the Servicer;
provided  that no such  reports  shall be  required so long as the Seller is the
sole  Certificateholder.  Any Paying  Agent  shall have the  revocable  power to
withdraw  funds from the  Certificate  Distribution  Account  for the purpose of
making the  distributions  referred to above.  The Owner Trustee may revoke such
power and remove the Paying Agent if the Owner  Trustee  determines  in its sole
discretion  that the Paying  Agent shall have failed to perform its  obligations
under this Agreement in any material  respect.  The Paying Agent shall initially
be Bankers  Trust  Company,  and any  co-paying  agent  chosen by Bankers  Trust
Company,  and  acceptable to the Owner  Trustee.  Bankers Trust Company shall be
permitted  to resign as Paying Agent upon 30 days'  written  notice to the Owner
Trustee. If Bankers Trust Company shall no longer be the Paying Agent, the Owner
Trustee  shall appoint a successor to act as Paying Agent (which shall be a bank
or trust company).  The Owner Trustee shall cause such successor Paying Agent or
any  additional  Paying  Agent  appointed  by the Owner  Trustee to execute  and
deliver to the Owner Trustee an instrument in which such successor  Paying Agent
or  additional  Paying  Agent shall agree with the Owner  Trustee that as Paying
Agent,  such  successor  Paying Agent or additional  Paying Agent shall hold all
sums, if any, held by it for payment to the  Certificateholders in trust for the
benefit of the

                                        8
<PAGE>

Certificateholders  entitled  thereto  until  such  sums  shall  be paid to such
Certificateholders.  The Paying  Agent shall return all  unclaimed  funds to the
Owner  Trustee and upon  removal of a Paying  Agent such Paying Agent shall also
return all funds in its  possession  to the Owner  Trustee.  The  provisions  of
Sections 6.3, 6.6, 6.7 and 6.9 shall apply to the Owner Trustee also in its role
as Paying Agent, for so long as the Owner Trustee shall act as Paying Agent and,
to the extent applicable,  to any other paying agent,  certificate  registrar or
authenticating  agent  appointed here under.  Any reference in this Agreement to
the Paying Agent shall include any co-paying  agent unless the context  requires
otherwise.

     Section 3.10 [Reserved].

     Section 3.11 Book-Entry Certificates. Except for the Certificates issued to
the Seller,  the Certificates,  upon original  issuance,  shall be issued in the
form  of  a  printed   Certificate  or  Certificates   representing   Book-Entry
Certificates,  to be  delivered to The  Depository  Trust  Company,  the initial
Clearing Agency by or on behalf of the Trust.  Such  Certificate or Certificates
shall initially be registered on the Certificate  Register in the name of Cede &
Co., the nominee of the initial  Clearing Agency and no Certificate  Owner shall
receive a definitive Certificate  representing such Certificate Owner's interest
in such  Certificate,  except as  provided  in  Section  3.13.  Unless and until
definitive fully registered  Certificates (the "Definitive  Certificates") shall
have been issued to Certificate Owners pursuant to Section 3.13:

          (a) the  provisions  of this  Section  3.11 shall be in full force and
     effect;

          (b) the Certificate  Registrar and the Owner Trustee shall be entitled
     to deal  with  the  Clearing  Agency  for all  purposes  of this  Agreement
     (including the payment of principal of and interest on the Certificates and
     the giving of instructions  or directions  hereunder) as the sole Holder of
     the Certificate, and shall have no obligation to the Certificate Owners;

          (c) to the extent that the  provisions  of this Section 3.11  conflict
     with any other provisions of this Agreement, the provisions of this Section
     3.11 shall control;

          (d) the  rights of the  Certificate  Owners  shall be  exercised  only
     through the Clearing  Agency and shall be limited to those  established  by
     law and agreements  between such Certificate Owners and the Clearing Agency
     and/or  the  Clearing  Agency  Participants,  unless  and until  Definitive
     Certificates  are issued  pursuant to Section  3.13,  the initial  Clearing
     Agency  will  make   book-entry   transfers   among  the  Clearing   Agency
     Participants and receive and transmit payments of principal of and interest
     on the Certificates to such Clearing Agency Participants;

          (e) whenever this  Agreement  requires or permits  actions to be taken
     based upon instructions or directions of Holders of Certificates evidencing
     a specified  percentage of the Voting Interests,  the Clearing Agency shall
     be deemed to represent such percentage only to

                                        9
<PAGE>

     the  extent  that  it  has  received   instructions  to  such  effect  from
     Certificate   Owners  and/or   Clearing  Agency   Participants   owning  or
     representing,  respectively,  such required  percentage of Voting Interests
     and has delivered such instructions to the Owner Trustee;

provided,  however,  that the  provisions  of this  Section  3.11  shall  not be
applicable in respect of  Certificates  issued to the Seller.  The Seller or the
Owner Trustee may set a record date for the purpose of determining  the identity
of Holders of Certificates  entitled to vote or to consent to any action by vote
as provided in this Agreement.

     Section  3.12  Notices  to  Clearing  Agency.  Whenever  a notice  or other
communication to the Certificateholders is required under this Agreement, unless
and until Definitive  Certificates  shall have been issued to Certificate Owners
pursuant to Section  3.13,  the Owner  Trustee  shall give all such  notices and
communications  specified  herein  to be  given  to  Certificateholders  to  the
Clearing Agency and shall have no further obligation to the Certificate Owners.

     Section 3.13 Definitive Certificates.  If (a) the Administrator advises the
Owner Trustee in writing that the Clearing  Agency is no longer  willing or able
to properly discharge its responsibilities  with respect to the Certificates and
the  Administrator  is  unable  to  locate  a  qualified   successor,   (b)  the
Administrator  at its option advises the Owner Trustee in writing that it elects
to terminate the book-entry system through the Clearing Agency, or (c) after the
occurrence  of an Event of  Default or a Servicer  Default,  Certificate  Owners
representing beneficial interests aggre gating at least a majority of the Voting
Interests  advise the  Clearing  Agency in writing  that the  continuation  of a
book-entry  system through the Clearing Agency is no longer in the best interest
of the Certificate Owners, then the Clearing Agency shall notify all Certificate
Owners  and the Owner  Trustee  of the  occurrence  of any such event and of the
availability  of Definitive  Certificates to Certificate  Owners  requesting the
same.  Upon  surrender  to the  Owner  Trustee  of the  printed  Certificate  or
Certificates  representing  the Book-Entry  Certificates by the Clearing Agency,
accompanied by  registration  instructions,  the Owner Trustee shall execute and
authenticate the Definitive  Certificates in accordance with the instructions of
the Clearing  Agency.  Neither the  Certificate  Registrar nor the Owner Trustee
shall be  liable  for any  delay  in  delivery  of such  instruc  tions  and may
conclusively  rely on, and shall be protected in relying on, such  instructions.
Upon the issuance of Definitive Certificates,  the Owner Trustee shall recognize
the Holders of the Defini tive Certificates as Certificateholders.

     Section 3.14 Seller as  Certificateholder.  The Seller in its individual or
any other  capacity  may become the owner or  pledgee  of  Certificates  and may
otherwise  deal with the Owner  Trustee or its  Affiliates as if it were not the
Seller.

                                       10

<PAGE>

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

     Section  4.1 Prior  Notice to  Certificateholders  with  Respect to Certain
Matters.  The Owner  Trustee shall not take action with respect to the following
matters, unless (i) the Owner Trustee shall have notified the Certificateholders
in writing  of the  proposed  action at least 30 days  before the taking of such
action,  and (ii) the  Certificateholders  shall  not have  notified  the  Owner
Trustee  in writing  prior to the 30th day after such  notice is given that such
Certificateholders have withheld consent or provided alternative direction:

          (a) the initiation of any claim or lawsuit by the Trust (other than an
     action to collect on a  Receivable  or an action by the  Indenture  Trustee
     pursuant to the  Indenture)  and the  compromise  of any  action,  claim or
     lawsuit brought by or against the Trust (other than an action to collect on
     a  Receivable  or an  action  by  the  Indenture  Trustee  pursuant  to the
     Indenture);

          (b) the election by the Trust to file an amendment to the  Certificate
     of Trust, a conformed copy of which is attached hereto as Exhibit B;

          (c) the  amendment  of the  Indenture by a  supplemental  indenture in
     circumstances where the consent of any Noteholder is required;

          (d) the  amendment  of the  Indenture by a  supplemental  indenture in
     circumstances  where the consent of any Noteholder is not required and such
     amendment    materially    adversely   affects   the   interests   of   the
     Certificateholders;

          (e)  the  amendment,  change  or  modification  of the  Administration
     Agreement,  except  to cure any  ambiguity  or to amend or  supplement  any
     provision  in a manner  that  would not  materially  adversely  affect  the
     interests of the Certificateholders; or

          (f) the  appointment  pursuant to the  Indenture  of a successor  Note
     Registrar,  Paying Agent or Indenture Trustee or pursuant to this Agreement
     of a successor Certificate  Registrar,  or the consent to the assignment by
     the Note  Registrar,  Paying  Agent or  Indenture  Trustee  or  Certificate
     Registrar of its  obligations  under the  Indenture or this  Agreement,  as
     applicable.

     Section 4.2 Action by  Certificateholders  with Respect to Certain Matters.
The Owner Trustee shall not have the power, except upon the written direction of
the  Certificateholders,  to remove the Administrator  under the  Administration
Agreement  pursuant  to Section 10 thereof,  appoint a  successor  Administrator
pursuant  to Section 10 of the  Administration  Agreement,  remove the  Servicer
under the Trust Sale and Servicing Agreement pursuant to Section 7.02 thereof or

                                       11
<PAGE>

except as expressly provided in the Basic Documents, sell the Receivables or any
interest therein after the termination of the Indenture. The Owner Trustee shall
take the  actions  referred  to in the  preceding  sentence  only  upon  written
instructions signed by the Certificateholders.

     Section 4.3 Action by  Certificateholders  with Respect to Bankruptcy.  The
Owner  Trustee  shall not have the power to commence a voluntary  proceeding  in
bankruptcy  relating to the Trust  without the unanimous  prior  approval of all
Certificateholders  (including the Seller) and the delivery to the Owner Trustee
by  each  such   Certificateholder   of  a  certificate   certifying  that  such
Certificateholder  reasonably  believes that the Trust is  insolvent;  provided,
however, that under no circumstances shall the Owner Trustee commence or join in
commencing  any such  proceeding  prior to the date that is one year and one day
after the termination of the Trust.

     Section   4.4    Restrictions    on    Certificateholders'    Power.    The
Certificateholders  shall not direct the Owner  Trustee to take or refrain  from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the  Owner  Trustee  under  this  Agreement  or any of the Basic
Documents or would be contrary to Section  2.3,  nor shall the Owner  Trustee be
obligated to follow any such direction,  if given. The Certificateholders  shall
not and shall not direct the Owner Trustee to take action that would violate the
provisions  of  Section  6.1 and,  if  given,  the  Owner  Trustee  shall not be
obligated to follow any such direction.

     Section 4.5 Majority  Control.  Except as expressly  provided  herein,  any
action  that may be  taken or  consent  that  may be  given or  withheld  by the
Certificateholders  under this  Agreement  shall be  effective if such action is
taken or such  consent  is given or  withheld  by the  Holders  of  Certificates
evidencing  not less than a majority of the Voting  Interests as of the close of
the  preceding  Distribution  Date.  Except as expressly  provided  herein,  any
written   notice,   instruction,    direction   or   other   document   of   the
Certificateholders  delivered  pursuant to this Agreement  shall be effective if
signed by Holders of  Certificates  evidencing  not less than a majority  of the
Voting Interests at the time of the delivery of such notice.

                                    ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     Section 5.1 Establishment of Certificate Distribution Account.

     (a) Except as  otherwise  provided in Section 5.2,  the  Servicer,  for the
benefit of the  Certificateholders,  shall establish and maintain in the name of
the Trust an Eligible  Deposit  Account  known as the Capital  Auto  Receivables
Asset  Trust  2001-2   Certificate   Distribution   Account  (the   "Certificate
Distribution  Account"),  bearing an additional  designation  clearly indicating
that  the  funds   deposited   therein   are  held  for  the   benefit   of  the
Certificateholders.

                                       12

<PAGE>

     (b) The Trust  shall  possess all right,  title and  interest in and to all
funds on deposit from time to time in the Certificate  Distribution  Account and
in all proceeds  thereof.  Except as otherwise  provided  herein or in the Trust
Sale and Servicing  Agreement,  the  Certificate  Distribution  Account shall be
under the sole  dominion and control of the Owner Trustee for the benefit of the
Certificateholders. If, at any time, the Certificate Distribution Account ceases
to be an Eligible Deposit Account,  the Owner Trustee (or the Servicer on behalf
of the Owner Trustee, if the Certificate  Distribution  Account is not then held
by the Owner Trustee or an Affiliate  thereof) shall within 10 Business Days (or
such  longer  period,  not to exceed 30 calendar  days,  as to which each Rating
Agency may  consent)  establish  a new  Certificate  Distribution  Account as an
Eligible  Deposit  Account and shall transfer any cash and/or any investments to
such new Certificate Distribution Account.

     Section 5.2 Application of Trust Funds.

     (a) On each  Distribution  Date, the Owner Trustee shall  distribute to the
Certificate holders, on a pro rata basis, amounts equal to the amounts deposited
in the Certificate  Distribution  Account  pursuant to Sections 4.06 and 4.07 of
the Trust Sale and Servicing  Agreement on or prior to such  Distribution  Date.
Notwithstanding the foregoing or anything else to the contrary in this Agreement
or the other Basic Documents, if and for so long as Certificates representing in
the  aggregate a 100%  beneficial  interest in the Trust are held by the Seller,
(i) no Certificate  Distribution  Account shall be required to be established or
maintained  and  (ii)  all   distributions  and  payments  on  the  Certificates
(including  the final  distribution  as  contemplated  by Section 7.1(c) hereof)
required hereunder or under the Trust Sale and Servicing Agreement shall be made
directly to the Seller by the Indenture  Trustee  (whether or not the Trust Sale
and Servicing  Agreement  otherwise  contemplates  deposit into the  Certificate
Distribution  Account) and the Owner  Trustee shall have no duty or liability to
see to such distribution.

     (b) On  each  Distribution  Date,  the  Owner  Trustee  shall  send to each
Certificateholder  the  statement  provided to the Owner Trustee by the Servicer
pursuant to Section  4.09(a) of the Trust Sale and  Servicing  Agreement on such
Distribution  Date  setting  forth,  among  other  things,  the  amount  of  the
distribution  allocable to Certificate Balance and to interest,  the Certificate
Balance  after giving  effect to such  distribution,  the balance of the Reserve
Account (and  amounts,  if any,  distributed  from the Reserve  Account) and the
Total Servicing Fee with respect to such Distribution Date or Monthly Period, as
applicable;  provided that no such statement shall be required to be sent by the
Owner Trustee if and for so long as the Seller is the sole Certificateholder.

     (c)  If  any  withholding  tax  is  imposed  on  the  Trust's  payment  (or
allocations of income) to a Certificateholder,  such tax shall reduce the amount
otherwise  distributable  to the  Certificate  holder  in  accordance  with this
Section 5.2;  provided  that the Owner  Trustee  shall not have an obligation to
withhold  any  such  amount  if  and  for so  long  as the  Seller  is the  sole
Certificateholder. The Owner Trustee is hereby authorized and directed to retain
from amounts otherwise distributable to the Certificateholders  sufficient funds
for the payment of any tax that is legally owed by the Trust

                                       13
<PAGE>

(but such authorization  shall not prevent the Owner Trustee from contesting any
such tax in  appropriate  proceedings  and  withholding  payment of such tax, if
permitted by law,  pending the outcome of such  proceedings).  The amount of any
withholding tax imposed with respect to a Certificateholder  shall be treated as
cash  distributed  to such  Certificateholder  at the time it is withheld by the
Trust  and  remitted  to  the  appropriate  taxing  authority.  If  there  is  a
possibility that withholding tax is payable with respect to a distribution (such
as a distribution to a non-U.S. Certificateholder), the Owner Trustee may in its
sole discretion withhold such amounts in accordance with this Section 5.2(c). If
a  Certificateholder  wishes to apply for a refund of any such  withholding tax,
the Owner Trustee shall  reasonably  cooperate  with such  Certificateholder  in
making  such claim so long as such  Certificateholder  agrees to  reimburse  the
Owner Trustee for any out-of-pocket expenses incurred.

     (d) If the Indenture Trustee holds escheated funds for payment to the Trust
pursuant to Section  3.3(e) of the  Indenture,  the Owner  Trustee  shall,  upon
notice from the Indenture Trustee that such funds exist, submit on behalf of the
Trust an Issuer Order to the Indenture Trustee pursuant to Section 3.3(e) of the
Indenture instructing the Indenture Trustee to pay such funds to or at the order
of the Seller.

     Section 5.3 Method of  Payment.  Subject to Section  7.1(c),  distributions
required to be made to Certificateholders on any Distribution Date shall be made
to each  Certificateholder  of record  on the  related  Record  Date (i) by wire
transfer,  in immediately  available  funds,  to the account of such Holder at a
bank  or  other  entity  having  appropriate  facilities  therefor,  if (x)  the
Certificates are Definitive Certificates,  and such Certificateholder shall have
provided to the Certificate  Registrar appropriate written instructions at least
five Business Days prior to such Record Date and the distribution required to be
made to such  Holder  on such  Distribution  Date  exceeds  $100,000  or (y) the
Certificates are Book-Entry Certificates,  or, (ii) if neither clause (i)(x) nor
clause (i)(y) is applicable,  by check mailed to such  Certificateholder  at the
address of such Certificateholder appearing in the Certificate Register.

     Section 5.4 Accounting and Reports to the Certificateholders,  the Internal
Revenue  Service and Others.  The Owner Trustee  shall  maintain (or cause to be
maintained)  the  books of the Trust on a  calendar  year  basis on the  accrual
method of accounting,  deliver to each Certificateholder,  as may be required by
the Code and applicable Treasury  Regulations or otherwise,  such information as
may be required to enable each  Certificateholder  to prepare its federal income
tax return,  file such tax returns relating to the Trust and make such elections
as may from time to time be required or appropriate  under any applicable  state
or federal  statute  or rule or  regulation  thereunder  so as to  maintain  the
Trust's  characterization  as an entity  described in clause (i) of Section 2.11
for  federal  income tax  purposes,  cause such tax  returns to be signed in the
manner  required by law and collect or cause to be collected any withholding tax
as described in and in accordance  with Section 5.2(c) with respect to income or
distributions  to  Certificateholders.  In the event that the  Internal  Revenue
Service were to contend  successfully  that the Trust is not a grantor trust but
is rather a  partnership  for  federal  income  tax  purposes,  the Trust  shall
allocate items of

                                       14
<PAGE>

income, gain, deduction and loss to the partners of the Trust in accordance with
their economic  interests in the Trust.  With respect to interest expense of the
Trust,  the Trust shall  allocate to the  Certificateholders  their share of the
entire amount of such interest expense.

     Section 5.5  Signature  on Returns;  Other Tax Matters.  The Owner  Trustee
shall sign on behalf of the Trust any and all tax  returns of the Trust,  unless
applicable law requires a  Certificateholder  to sign such  documents,  in which
case such  documents  shall be signed by the  Seller.  To the  extent one may be
required, the Seller shall be the "tax matters partner" of the Trust pursuant to
the Code.

                                   ARTICLE VI

                                THE OWNER TRUSTEE

     Section 6.1 Duties of Owner Trustee.

     (a) The Owner  Trustee  undertakes  to perform such  duties,  and only such
duties,  as are  specifically  set forth in this  Agreement  and the other Basic
Documents,  including  the  administration  of the Trust in the  interest of the
Certificateholders,  subject to the Basic  Documents and in accordance  with the
provisions of this Agreement.  No implied covenants or obligations shall be read
into this Agreement.

     (b)  Notwithstanding  the  foregoing,  the Owner Trustee shall be deemed to
have  discharged its duties and  responsibilities  hereunder and under the Basic
Documents  to the extent  the  Administrator  has  agreed in the  Administration
Agreement  to  perform  any act or to  discharge  any duty of the Owner  Trustee
hereunder or under any Basic Document, and the Owner Trustee shall not be liable
for the  default or failure of the  Administrator  to carry out its  obligations
under the Administration Agreement.

     (c) In the  absence  of bad  faith  on its  part,  the  Owner  Trustee  may
conclusively rely upon  certificates or opinions  furnished to the Owner Trustee
and conforming to the requirements of this Agreement in determining the truth of
the statements and the correctness of the opinions contained therein;  provided,
however,  that the Owner  Trustee  shall  have  examined  such  certificates  or
opinions so as to determine compliance of the same with the requirements of this
Agreement.

     (d) The  Owner  Trustee  may not be  relieved  from  liability  for its own
negligent  action,  its  own  negligent  failure  to  act  or  its  own  willful
misconduct, except that:

          (i) this Section  6.1(d) shall not limit the effect of Section  6.1(a)
     or (b);

                                       15
<PAGE>

          (ii) the Owner  Trustee  shall not be liable for any error of judgment
     made in good faith by a  Responsible  Officer  unless it is proved that the
     Owner Trustee was negligent in ascertaining the pertinent facts; and

          (iii) the Owner Trustee shall not be liable with respect to any action
     it  takes or omits to take in good  faith in  accordance  with a  direction
     received by it pursuant to Section 4.1, 4.2 or 6.4.

     (e) Subject to Sections 5.1 and 5.2,  monies  received by the Owner Trustee
hereunder need not be segregated in any manner except to the extent  required by
law or the Trust Sale and Servicing  Agreement  and may be deposited  under such
general  conditions as may be prescribed by law, and the Owner Trustee shall not
be liable for any interest thereon.

     (f) The Owner  Trustee  shall not take any action that (i) is  inconsistent
with the  purposes of the Trust set forth in Section  2.3 or (ii) would,  to the
actual  knowledge of a Responsible  Officer of the Owner Trustee,  result in the
Trust's becoming  taxable as a corporation for federal income tax purposes.  The
Certificateholders  shall not direct the Owner Trustee to take action that would
violate the provisions of this Section 6.1.

     Section 6.2 Rights of Owner  Trustee.  The Owner Trustee is authorized  and
directed  to execute and deliver the Basic  Documents  and each  certificate  or
other document  attached as an exhibit to or contemplated by the Basic Documents
to which the Trust is to be a party, in such form as the Seller shall approve as
evidenced  conclusively by the Owner Trustee's execution thereof. In addition to
the foregoing,  the Owner Trustee is authorized,  but shall not be obligated, to
take all actions  required of the Trust  pursuant  to the Basic  Documents.  The
Owner Trustee is further authorized from time to time to take such action as the
Administrator  recommends  and  directs  in  writing  with  respect to the Basic
Documents.

     Section 6.3 Acceptance of Trusts and Duties.  Except as otherwise  provided
in this  Article VI, in  accepting  the trusts  hereby  created,  Bankers  Trust
(Delaware)  acts solely as Owner  Trustee  hereunder  and not in its  individual
capacity and all Persons having any claim against the Owner Trustee by reason of
the transactions contemplated by this Agreement or any Basic Document shall look
only to the Owner Trust Estate for payment or  satisfaction  thereof.  The Owner
Trustee  accepts  the trusts  hereby  created  and agrees to perform  its duties
hereunder with respect to such trusts but only upon the terms of this Agreement.
The Owner  Trustee  also agrees to disburse all monies  actually  received by it
constituting  part of the  Owner  Trust  Estate  upon  the  terms  of the  Basic
Documents  and  this  Agreement.  The  Owner  Trustee  shall  not be  liable  or
accountable  hereunder  or under any  Basic  Document  under any  circumstances,
except for its own negligent action, its own negligent failure to act or its own
willful  misconduct or in the case of the  inaccuracy of any  representation  or
warranty  contained in Section 6.6 and expressly made by the Owner  Trustee.  In
particular,  but not by way of  limitation  (and subject to the  exceptions  set
forth in the preceding sentence):

                                       16
<PAGE>

     (a) the Owner Trustee shall at no time have any responsibility or liability
for, or with  respect  to, the  legality,  validity  and  enforceability  of any
Receivable,  or the perfection and priority of any security  interest created by
any Receivable in any Financed Vehicle or the maintenance of any such perfection
and  priority,  or for, or with respect to, the  sufficiency  of the Owner Trust
Estate  or  its  ability  to  generate  the  payments  to  be   distributed   to
Certificateholders  under this Agreement or to Noteholders  under the Indenture,
including,  without  limitation:  the existence,  condition and ownership of any
Financed Vehicle;  the exis tence and  enforceability of any insurance  thereon;
the  existence  and  contents of any Receiv able on any computer or other record
thereof; the validity of the assignment of any Receivable to the Trust or of any
intervening assignment;  the completeness of any Receivable;  the performance or
enforcement of any Receivable; the compliance by the Seller or the Servicer with
any warranty or  representation  made under any Basic Document or in any related
document or the accuracy of any such warranty or representation or any action of
the  Administrator,  the Trustee or the Servicer or any subservicer taken in the
name of the Owner Trustee.

     (b) the Owner  Trustee shall not be liable with respect to any action taken
or  omitted  to be  taken  by it in  accordance  with  the  instructions  of the
Administrator or any Certificateholder;

     (c) no provision of this  Agreement or any Basic Document shall require the
Owner Trustee to expend or risk funds or otherwise incur any financial liability
in the  performance of any of its rights or powers  hereunder or under any Basic
Document,  if the Owner Trustee shall have reasonable grounds for believing that
repayment of such funds or adequate  indemnity against such risk or liability is
not reasonably assured or provided to it;

     (d)  under  no  circumstances   shall  the  Owner  Trustee  be  liable  for
indebtedness evidenced by or arising under any of the Basic Documents, including
the  principal  of and interest on the Notes or the  Certificate  Balance of and
interest on the Certificates;

     (e) the Owner  Trustee  shall not be  responsible  for or in respect of and
makes no  representation  as to the validity or  sufficiency of any provision of
this  Agreement or for the due  execution  hereof by the Seller or for the form,
character, genuineness, sufficiency, value or validity of any of the Owner Trust
Estate or for,  or in respect  of,  the  validity  or suffi  ciency of the Basic
Documents,   the  Notes,  the  Certificates   (other  than  the  certificate  of
authentication  on the  Certificates)  or of  any  Receivables  or  any  related
documents,  and the  Owner  Trustee  shall  in no  event  assume  or  incur  any
liability,  duty or  obligation to any  Noteholder or to any  Certificateholder,
other than as expressly provided for herein and in the Basic Documents;

                                       17
<PAGE>

     (f) the Owner  Trustee shall not be liable for the default or misconduct of
the Administrator,  the Indenture Trustee,  the Seller or the Servicer under any
of the  Basic  Documents  or  otherwise  and the  Owner  Trustee  shall  have no
obligation  or  liability  to perform  the  obligations  of the Trust under this
Agreement  or the Basic  Documents  that are  required  to be  performed  by the
Administrator  under the Administration  Agreement,  the Indenture Trustee under
the Indenture or the Servicer  under the Pooling and Servicing  Agreement or the
Trust Sale and Servicing Agreement; and

     (g) the Owner  Trustee  shall be under no obligation to exercise any of the
rights or powers vested in it by this  Agreement,  or to  institute,  conduct or
defend any  litigation  under this Agreement or otherwise or in relation to this
Agreement or any Basic  Document,  at the request,  order or direction of any of
the Certificateholders, unless such Certificateholders have offered to the Owner
Trustee security or indemnity satisfactory to it against the costs, expenses and
liabilities  that may be incurred by the Owner Trustee  therein or thereby.  The
right of the Owner Trustee to perform any  discretionary  act enumerated in this
Agreement or in any Basic  Document  shall not be  construed as a duty,  and the
Owner Trustee shall not be answerable  for other than its  negligence or willful
misconduct in the performance of any such act.

     Section 6.4 Action upon Instruction by Certificateholders.

     (a)  Subject  to  Section  4.4,  the   Certificateholders  may  by  written
instruction  direct the Owner  Trustee  in the  management  of the  Trust.  Such
direction  may  be  exercised  at  any  time  by  written   instruction  of  the
Certificateholders pursuant to Section 4.5.

     (b) Notwithstanding the foregoing,  the Owner Trustee shall not be required
to take any action  hereunder or under any Basic  Document if the Owner  Trustee
shall have reasonably  determined,  or shall have been advised by counsel,  that
such action is likely to result in liability on the part of the Owner Trustee or
is  contrary  to the  terms  hereof  or of any Basic  Document  or is  otherwise
contrary to law.

     (c)  Whenever  the Owner  Trustee is unable to decide  between  alternative
courses of action  permitted  or required by the terms of this  Agreement or any
Basic Document,  or is unsure as to the application,  intent,  interpretation or
meaning of any  provision of this  Agreement or the Basic  Documents,  the Owner
Trustee shall promptly give notice (in such form as shall be  appropriate  under
the circumstances) to the  Certificateholders  requesting  instruction as to the
course of action to be  adopted,  and, to the extent the Owner  Trustee  acts in
good faith in accordance with any such instruction  received,  the Owner Trustee
shall not be liable  on  account  of such  action  to any  Person.  If the Owner
Trustee shall not have received appropriate instructions within ten days of such
notice (or within such shorter  period of time as reasonably may be specified in
such notice or may be necessary  under the  circumstances)  it may, but shall be
under no duty to, take or refrain from taking such action  which is  consistent,
in its view, with this Agreement or the Basic

                                       18
<PAGE>

Documents,   and  as  it  shall  deem  to  be  in  the  best  interests  of  the
Certificateholders,  and the Owner Trustee shall have no liability to any Person
for any such action or inaction.

     Section 6.5 Furnishing of Documents. The Owner Trustee shall furnish to the
Certificateholders,  promptly  upon  receipt  of  a  written  request  therefor,
duplicates or copies of all reports, notices, requests,  demands,  certificates,
financial  statements and any other  instruments  furnished to the Owner Trustee
under the Basic Documents.

     Section 6.6  Representations  and  Warranties of Owner  Trustee.  The Owner
Trustee  hereby  represents  and warrants to the Seller,  for the benefit of the
Certificateholders, that:

          (a) It is a banking  corporation duly organized,  validly existing and
     in good standing under the laws of the state of its  incorporation.  It has
     satisfied the eligibility requirements set forth in Section 6.13.

          (b) It has full power,  authority and legal right to execute,  deliver
     and perform this Agreement, and has taken all necessary action to authorize
     the execution, delivery and per formance by it of this Agreement.

          (c) The  execution,  delivery and  performance by it of this Agreement
     (i) shall not violate any provision of any law or regulation  governing the
     banking and trust powers of the Owner Trustee or any order, writ,  judgment
     or decree of any court,  arbitrator or governmental authority applicable to
     the  Owner  Trustee  or any of its  assets,  (ii)  shall  not  violate  any
     provision of the corporate charter or by-laws of the Owner Trustee or (iii)
     shall not violate any provision of, or  constitute,  with or without notice
     or lapse of time, a default under,  or result in the creation or imposition
     of any  lien  on any  properties  included  in the  Trust  pursuant  to the
     provisions  of  any  mortgage,  indenture,  contract,  agreement  or  other
     undertaking to which it is a party, which violation,  default or lien could
     reasonably  be expected to have a  materially  adverse  effect on the Owner
     Trustee's  performance  or ability to perform  its duties as Owner  Trustee
     under this Agreement or on the transactions contemplated in this Agreement.

          (d) This  Agreement  has been duly executed and delivered by the Owner
     Trustee and constitutes the legal, valid and binding agreement of the Owner
     Trustee, enforceable in accordance with its terms, except as enforceability
     may be limited by bankruptcy, insolvency,  reorganization, or other similar
     laws  affecting  the  enforcement  of  creditors'  rights in general and by
     general principles of equity,  regardless of whether such enforceability is
     considered in a proceeding in equity or at law.

                                       19
<PAGE>

     Section 6.7 Reliance; Advice of Counsel.

     (a) The Owner Trustee shall incur no liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order, certificate,
report,  opinion,  bond or other  document or paper believed by it to be genuine
and  believed  by it to be signed by the proper  party or  parties  and need not
investigate  any fact or matter in any such  document.  The  Owner  Trustee  may
accept a  certified  copy of a  resolution  of the board of  directors  or other
governing  body  of  any  corporate  party  as  conclusive  evidence  that  such
resolution has been duly adopted by such body and that the same is in full force
and effect. As to any fact or matter the method of the determination of which is
not  specifically  prescribed  herein,  the Owner  Trustee may for all  purposes
hereof rely on a  certificate,  signed by the president or any vice president or
by the treasurer or other authorized  officers of the relevant party, as to such
fact or matter,  and such  certificate  shall  constitute full protection to the
Owner Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon.

     (b) In the exercise or  administration  of the trusts  hereunder and in the
performance  of its duties and  obligations  under this  Agreement  or the Basic
Documents, the Owner Trustee: may act directly or through its agents, attorneys,
custodians  or  nominees  (including  the  granting  of a power of  attorney  to
officers of Bankers  Trust  Company to execute and deliver any Basic  Documents,
Certificate,  Note or other  documents  related  thereto  on behalf of the Owner
Trustee)  pursuant to  agreements  entered into with any of them,  and the Owner
Trustee  shall not be liable  for the  conduct  or  misconduct  of such  agents,
attorneys,  custodians  or nominees if such  agents,  attorneys,  custodians  or
nominees shall have been selected by the Owner Trustee with reasonable care; and
may consult with  counsel,  accountants  and other skilled  professionals  to be
selected with reasonable care and employed by it. The Owner Trustee shall not be
liable for anything done,  suffered or omitted in good faith by it in accordance
with the  opinion  or  advice of any such  counsel,  accountants  or other  such
Persons and not contrary to this Agreement or any Basic Document.

     Section 6.8 Owner Trustee May Own Certificates and Notes. The Owner Trustee
in its  individual  or any other  capacity  may  become  the owner or pledgee of
Certificates  or Notes  and may deal with the  Seller,  the  Administrator,  the
Indenture  Trustee  and the  Servicer in  transactions  in the same manner as it
would have if it were not the Owner Trustee.

     Section 6.9 Compensation and Indemnity.  The Owner Trustee shall receive as
compensation for its services hereunder such fees as have been separately agreed
upon before the date hereof between the Servicer and the Owner Trustee,  and the
Owner Trustee, any paying agent,  registrar,  authenticating agent or co-trustee
shall be entitled to be  reimbursed  by the  Servicer  for its other  reasonable
expenses  hereunder,   including  the  reasonable  compensation,   expenses  and
disbursements of such agents, custodians, nominees, representatives, experts and
external counsel as the Owner Trustee may employ in connection with the exercise
and  performance  of its rights and its duties  hereunder.  The  Servicer  shall
indemnify the Owner Trustee, any paying agent,  registrar,  authenticating agent
or co-trustee  and its  successors,  assigns,  agents and servants in accordance
with

                                       20
<PAGE>

the  provisions of Section 6.01 of the Trust Sale and Servicing  Agreement.  The
indemnities  contained  in this  Section 6.9 shall  survive the  resignation  or
termination  of the Owner  Trustee or the  termination  of this  Agreement.  Any
amounts  paid to the Owner  Trustee  pursuant to this Article VI shall be deemed
not to be a part of the Owner Trust Estate immediately after such payment.

     Section 6.10 Replacement of Owner Trustee.

     (a) The  Owner  Trustee  may give  notice of its  intent  to resign  and be
discharged  from the  trusts  hereby  created  by giving  notice  thereof to the
Administrator provided that no such resignation shall become effective,  and the
Owner Trustee shall not resign,  prior to the time set forth in Section 6.10(c).
If no successor  Owner  Trustee  shall have been  appointed  pursuant to Section
6.10(b) and have  accepted such  appointment  within 30 days after the giving of
such  notice,  the Owner  Trustee  giving such notice may  petition any court of
competent  jurisdiction  for the appointment of a successor  Owner Trustee.  The
Administrator shall remove the Owner Trustee if:

          (i) the Owner Trustee  shall cease to be eligible in  accordance  with
     the  provisions  of  Section  6.13 and shall fail to resign  after  written
     request therefor by the Administrator;

          (ii) the Owner Trustee shall be adjudged bankrupt or insolvent;

          (iii) a receiver or other  public  officer  shall be appointed or take
     charge or control of the Owner  Trustee or of its  property  or affairs for
     the purpose of rehabilitation, conservation or liquidation; or

          (iv) the Owner Trustee shall otherwise be incapable of acting.

     (b) If the Owner Trustee gives notice of its intent to resign or is removed
or if a  vacancy  exists in the  office  of Owner  Trustee  for any  reason  the
Administrator  shall  promptly  appoint a  successor  Owner  Trustee  by written
instrument, in duplicate (one copy of which instrument shall be delivered to the
outgoing  Owner Trustee so removed and one copy to the successor  Owner Trustee)
and shall pay all fees owed to the outgoing Owner Trustee.

     (c) Any  resignation  or removal of the Owner Trustee and  appointment of a
successor  Owner Trustee  pursuant to any of the provisions of this Section 6.10
shall  not  become  effective  and no such  resignation  shall be deemed to have
occurred until a written acceptance of appointment is delivered by the successor
Owner Trustee to the outgoing Owner Trustee and the  Administrator  and all fees
and expenses due to the outgoing  Owner Trustee are paid.  Any  successor  Owner
Trustee appointed pursuant to this Section 6.10 shall be eligible to act in such
capacity in  accordance  with Section 6.13 and,  following  compliance  with the
preceding  sentence,  shall  become  fully  vested with all the rights,  powers,
duties and obligations of its predecessor under this Agreement, with like effect
as if originally named as Owner Trustee.  The Administrator shall provide notice
of such  resignation  or  removal  of the Owner  Trustee  to each of the  Rating
Agencies.

                                       21
<PAGE>

     (d) The  predecessor  Owner  Trustee  shall  upon  payment  of its fees and
expenses deliver to the successor Owner Trustee all documents and statements and
monies held by it under this Agreement.  The  Administrator  and the predecessor
Owner  Trustee  shall  execute and deliver  such  instruments  and do such other
things  as may  reasonably  be  required  for fully and  certainly  vesting  and
confirming in the successor  Owner Trustee all such rights,  powers,  duties and
obligations.

     (e) Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 6.10, the Administrator  shall mail notice of the successor of such
Owner Trustee to all Certificateholders,  the Indenture Trustee, the Noteholders
and the Rating Agencies.

     Section  6.11 Merger or  Consolidation  of Owner  Trustee.  Any Person into
which the Owner  Trustee  may be merged  or  converted  or with  which it may be
consolidated,   or  any  Person   resulting  from  any  merger,   conversion  or
consolidation  to which  the  Owner  Trustee  shall be a  party,  or any  Person
succeeding to all or  substantially  all of the corporate  trust business of the
Owner Trustee,  shall be the successor of the Owner Trustee hereunder,  provided
such  Person  shall be  eligible  pursuant  to Section  6.13,  and  without  the
execution or filing of any  instrument  or any further act on the part of any of
the parties hereto; provided,  however, that the Owner Trustee shall mail notice
of such merger or consolidation to the Rating Agencies.

     Section 6.12 Appointment of Co-Trustee or Separate Trustee.

     (a)  Notwithstanding  any other provisions of this Agreement,  at any time,
for the purpose of meeting any legal  requirement of any  jurisdiction  in which
any part of the Owner Trust  Estate or any  Financed  Vehicle may at the time be
located,  the  Administrator  and the Owner Trustee acting jointly shall, at the
expense  of the  Servicer,  have the  power and  shall,  at the  expense  of the
Servicer,  execute and deliver all  instruments  to appoint one or more  Persons
approved  by the Owner  Trustee  to act as  co-trustee,  jointly  with the Owner
Trustee,  or as separate  trustee or  trustees,  of all or any part of the Owner
Trust Estate,  and to vest in such Person,  in such capacity,  such title to the
Trust, or any part thereof, and, subject to the other provisions of this Section
6.12, such powers, duties,  obligations,  rights and trusts as the Administrator
and the Owner Trustee may consider necessary or desirable.  If the Administrator
shall not have joined in such appointment within 15 days after the receipt by it
of a request so to do, the Owner Trustee alone shall have the power to make such
appointment.  No co-trustee or separate  trustee under this  Agreement  shall be
required to meet the terms of  eligibility  as a successor  trustee  pursuant to
Section  6.13 and no notice of the  appointment  of any  co-trustee  or separate
trustee shall be required pursuant to Section 6.10.

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

          (i) all rights,  powers,  duties and obligations  conferred or imposed
     upon the Owner Trustee  shall be conferred  upon and exercised or performed
     by the Owner Trustee

                                       22
<PAGE>

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

          (ii) no trustee under this  Agreement  shall be  personally  liable by
     reason of any act or omission of any other  trustee  under this  Agreement;
     and

          (iii) the  Administrator  and the Owner Trustee  acting jointly may at
     any time  accept  the  resignation  of or remove  any  separate  trustee or
     co-trustee.

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

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

     Section 6.13 Eligibility  Requirements for Owner Trustee. The Owner Trustee
shall at all times satisfy the requirement of Section 26(a)(1) of the Investment
Company  Act.  The  Owner  Trustee  shall  at all  times:  (a) be a  corporation
satisfying the provisions of Section 3807(a) of the Business Trust Statute;  (b)
be authorized to exercise  corporate trust powers;  (c) have a combined  capital
and surplus of at least $50,000,000 and be subject to supervision or examination
by federal  or state  authorities;  and (d) have (or have a parent  which has) a
long-term  unsecured  debt rating of at least BBB- by Standard & Poor's  Ratings
Services  and  at  least  Baa3  by  Moody's  Investors  Service,  Inc.  If  such
corporation  shall publish reports of condition at least  annually,  pursuant to
law or to the requirements of the aforesaid  supervising or examining authority,
then for the purpose of

                                       23
<PAGE>

this Section 6.13, the combined capital and surplus of such corporation shall be
deemed to be its  combined  capital  and surplus as set forth in its most recent
report of condition so  published.  If at any time the Owner Trustee shall cease
to be eligible in accordance with the provisions of this Section 6.13, the Owner
Trustee shall resign  immediately in the manner and with the effect specified in
Section 6.10.

                                   ARTICLE VII

                         TERMINATION OF TRUST AGREEMENT

     Section 7.1 Termination of Trust Agreement.

     (a) This Agreement  (other than Section 6.9) and the Trust shall  terminate
in  accordance  with  Section 3808 of the  Business  Trust  Statute and be of no
further  force or effect on the final  distribution  by the Owner Trustee of all
monies or other  property or proceeds  of the Owner Trust  Estate in  accordance
with  the  terms of the  Indenture,  the  Trust  Sale  and  Servicing  Agreement
(including  the  exercise  by  the  Servicer  of  its  option  to  purchase  the
Receivables  pursuant  to  Section  8.01(a)  of the  Trust  Sale  and  Servicing
Agreement), the Interest Rate Swaps and Article V. The bankruptcy,  liquidation,
dissolution,  death or incapacity of any Certificateholder shall not (x) operate
to terminate this Agreement or the Trust,  (y) entitle such  Certificateholder's
legal  representatives  or heirs to claim an accounting or to take any action or
proceeding  in any court for a partition or winding up of all or any part of the
Trust or the Owner Trust Estate or (z) otherwise affect the rights,  obligations
and liabilities of the parties hereto.

     (b)  Neither  the Seller nor any  Certificateholder  shall be  entitled  to
revoke or terminate the Trust or this Agreement.

     (c)  Subject to Section  5.2(a),  notice of any  termination  of the Trust,
specifying  the  Distribution  Date  upon  which  the  Certificateholders  shall
surrender  their  Certificates  to the  Paying  Agent for  payment  of the final
distribution and cancellation,  shall be given by the Owner Trustee by letter to
Certificateholders mailed within five Business Days of receipt of notice of such
termination  from the Servicer  given  pursuant to Section  8.01(c) of the Trust
Sale and Servicing  Agreement,  stating:  (i) the Distribution Date upon or with
respect  to  which  final  payment  of  the  Certificates  shall  be  made  upon
presentation and surrender of the Certificates at the office of the Paying Agent
therein  designated;  (ii) the amount of any such final payment;  and (iii) that
the  Record  Date  otherwise   applicable  to  such  Distribution  Date  is  not
applicable,  payments  being made only upon  presentation  and  surrender of the
Certificates  at the office of the Paying  Agent  therein  specified.  The Owner
Trustee shall give such notice to the  Certificate  Registrar (if other than the
Owner  Trustee)  and the  Paying  Agent  at the  time  such  notice  is given to
Certificateholders.  Upon  presentation and surrender of the  Certificates,  the
Paying  Agent  shall  cause  to be  distributed  to  Certificateholders  amounts
distributable on such Distribution Date pursuant to Section 5.2.

                                       24
<PAGE>

     (d) If all of the Certificateholders shall not surrender their Certificates
for  cancellation  within six months  after the date  specified  in the  written
notice  referred to in Section  7.1(c),  the Owner  Trustee  shall give a second
written  notice  to  the  remaining   Certificateholders   to  surrender   their
Certificates for cancellation  and receive the final  distribution  with respect
thereto.  If within one year after the second notice all the Certificates  shall
not  have  been  surrendered  for  cancellation,  the  Owner  Trustee  may  take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost  thereof  shall be paid out of the funds and other  assets  that  shall
remain  subject to this  Agreement.  Subject to applicable  laws with respect to
escheat of funds,  any funds  remaining  in the Trust after  exhaustion  of such
remedies in the preceding  sentence  shall be deemed  property of the Seller and
distributed by the Owner Trustee to the Seller, and the Owner Trustee shall have
no further liability to the Certificateholders with respect thereto.

     (e) Upon the winding up and  termination  of the Trust in  accordance  with
Section 3808 of the Business  Trust Statute and this Section,  the Owner Trustee
shall cause the  Certificate  of Trust to be canceled by filing a certificate of
cancellation  with the Secretary of State in accordance  with the  provisions of
Section 3810 of the Business Trust Statute.

                                  ARTICLE VIII

                                   AMENDMENTS

     Section  8.1   Amendments   Without   Consent  of   Certificateholders   or
Noteholders.  This  Agreement may be amended by the Seller and the Owner Trustee
without the consent of any of the  Noteholders  or the  Certificateholders  (but
with prior notice to each of the Rating  Agencies),  to (i) cure any  ambiguity,
(ii) correct or supplement any provision in this Agreement that may be defective
or  inconsistent  with any other  provision in this Agreement or any other Basic
Document,  (iii) add or supplement any credit enhancement for the benefit of the
Noteholders or the Certificate holders (provided that if any such addition shall
affect any class of Noteholders or Certificateholders differently than any other
class of  Noteholders  or  Certificateholders,  then such addition shall not, as
evidenced by an Opinion of Counsel, adversely affect in any material respect the
interests of any class of the Noteholders or the  Certificateholders),  (iv) add
to the  covenants,  restrictions  or  obligations  of the  Seller  or the  Owner
Trustee,  (v) evidence and provide for the  acceptance of the  appointment  of a
successor  trustee  with  respect to the Owner Trust Estate and add to or change
any  provisions as shall be necessary to facilitate  the  administration  of the
trusts  hereunder by more than one trustee pursuant to Article VI, and (vi) add,
change or eliminate  any other  provision  of this  Agreement in any manner that
shall  not,  as  evidenced  by an Opinion of  Counsel,  adversely  affect in any
material respect the interests of the Noteholders or the Certificateholders.

     Section 8.2 Amendments With Consent of Certificateholders  and Noteholders.
This  Agreement  may be  amended  from time to time by the  Seller and the Owner
Trustee with the consent

                                       25
<PAGE>

of Noteholders  whose Notes evidence not less than a majority of the Outstanding
Amount of the Notes as of the close of the preceding  Distribution  Date and the
consent  of  Certificateholders  whose  Certificates  evidence  not less  than a
majority of the Voting  Interests as of the close of the preceding  Distribution
Date (which  consent,  whether given pursuant to this Section 8.2 or pursuant to
any other provision of this  Agreement,  shall be conclusive and binding on such
Person and on all future holders of such Notes or Certificates  and of any Notes
or Certificates  issued upon the transfer  thereof or in exchange  thereof or in
lieu  thereof  whether or not notation of such consent is made upon the Notes or
Certificates)  for the  purpose of adding any  provisions  to or changing in any
manner or eliminating any of the provisions of this  Agreement,  or of modifying
in any manner the rights of the Noteholders or the Certificateholders; provided,
however,  that no such amendment  shall (a) increase or reduce in any manner the
amount of, or  accelerate  or delay the timing of,  collections  of  payments on
Receivables  or  distributions  that shall be required to be made on any Note or
Certificate,  the Pass Through Rate or the Specified  Reserve Account Balance or
(b) reduce the aforesaid  percentage  required to consent to any such amendment,
without the consent of the holders of all Notes and all of the Voting  Interests
with respect to Certificates then  outstanding.  The Owner Trustee shall furnish
notice to each of the Rating Agencies prior to obtaining consent to any proposed
amendment under this Section 8.2.

     Section 8.3 Form of Amendments.

     (a) Promptly  after the execution of any  amendment,  supplement or consent
pursuant  to  Section  8.1 or 8.2,  the  Owner  Trustee  shall  furnish  written
notification   of  the   substance   of  such   amendment  or  consent  to  each
Certificateholder and the Indenture Trustee.

     (b) It shall not be necessary  for the consent of  Certificateholders,  the
Noteholders  or the  Indenture  Trustee  pursuant  to Section 8.2 to approve the
particular form of any proposed amendment or consent, but it shall be sufficient
if such consent  shall approve the  substance  thereof.  The manner of obtaining
such consents (and any other consents of Certificateholders provided for in this
Agreement or in any other Basic Document) and of evidencing the authorization of
the execution thereof by Certificateholders  shall be subject to such reasonable
requirements as the Owner Trustee may prescribe.

     (c) Promptly  after the  execution of any amendment to the  Certificate  of
Trust,  the Owner  Trustee  shall  cause the filing of such  amendment  with the
Secretary of State.

     (d)  Prior to the  execution  of any  amendment  to this  Agreement  or the
Certificate  of Trust,  the Owner  Trustee  shall be  entitled  to  receive  and
conclusively  rely upon an Opinion of Counsel stating that the execution of such
amendment is authorized or permitted by this  Agreement.  The Owner Trustee may,
but shall not be obligated to, enter into any such  amendment  which affects the
Owner  Trustee's  own  rights,  duties or  immunities  under this  Agreement  or
otherwise.

                                       26
<PAGE>

                                   ARTICLE IX

                                  MISCELLANEOUS

     Section 9.1 No Legal Title to Owner Trust  Estate.  The  Certificateholders
shall  not  have  legal  title  to any  part  of the  Owner  Trust  Estate.  The
Certificateholders  shall be entitled to receive  distributions  with respect to
their undivided  ownership  interest  therein only in accordance with Articles V
and VII. No transfer, by operation of law or otherwise, of any right, title, and
interest of the  Certificateholders  to and in their  ownership  interest in the
Owner Trust  Estate  shall  operate to  terminate  this  Agreement or the trusts
hereunder or entitle any transferee to an accounting or to the transfer to it of
legal title to any part of the Owner Trust Estate.

     Section 9.2  Limitations on Rights of Others.  Except for Section 9.13, the
provisions of this  Agreement  are solely for the benefit of the Owner  Trustee,
the  Seller,  the  Certificateholders,  the  Administrator  and,  to the  extent
expressly  provided  herein,  the  Indenture  Trustee and the  Noteholders,  and
nothing in this  Agreement,  whether  express or implied,  shall be construed to
give to any other  Person any legal or equitable  right,  remedy or claim in the
Owner Trust Estate or under or in respect of this  Agreement  or any  covenants,
conditions or provisions contained herein.

     Section 9.3  Derivative  Actions.  Any  provision  contained  herein to the
contrary  notwithstanding,  the  right  of any  Certificate  Owner  to  bring  a
derivative  action in the right of the Trust is hereby made expressly subject to
the following limitations and requirements:

     (a) such  Certificate  Owner  must meet all  requirements  set forth in the
Business Trust Statute; and

     (b) no Certificate  Owner may bring a derivative action in the right of the
Trust without the prior written  consent of Certificate  Owners  owning,  in the
aggregate,  a beneficial  interest in Certificates  representing 50% of the then
outstanding Certificate Balance.

     Section 9.4 Notices. All demands, notices and communications upon or to the
Seller,  the  Servicer,  the  Administrator,  the Indenture  Trustee,  the Owner
Trustee or the  Rating  Agencies  under this  Agreement  shall be  delivered  as
specified in Appendix B to the Trust Sale and Servicing Agreement.

     Section 9.5 Severability. If any one or more of the covenants,  agreements,
provisions or terms of this Agreement  shall be for any reason  whatsoever  held
invalid,  then such covenants,  agreements,  provisions or terms shall be deemed
severable from the remaining covenants, agreements,  provisions or terms of this
Agreement and shall in no way affect the validity or enforceability of the other
provisions of this Agreement or of the Certificates or the rights of the holders
thereof.

                                       27
<PAGE>

     Section 9.6  Counterparts.  This  Agreement  may be executed by the parties
hereto in separate  counterparts,  each of which when so executed and  delivered
shall be an original,  but all such counterparts  shall together  constitute one
and the same instrument.

     Section 9.7 Successors and Assigns.  All covenants and agreements contained
herein shall be binding upon, and inure to the benefit of, the Seller, the Owner
Trustee  and  each  Certificate  holder  and  their  respective  successors  and
permitted  assigns,  all as herein  provided.  Any request,  notice,  direction,
consent,  waiver or other instrument or action by a Certificateholder shall bind
the successors and assigns of such Certificateholder.

     Section 9.8 No Petition. The Owner Trustee by entering this Trust Agreement
and each  Certificateholder or Certificate Owner, by accepting a Certificate (or
interest  therein) issued  hereunder,  hereby covenant and agree that they shall
not (nor shall they join with or solicit  another  person to),  prior to the day
that is one year and one day  after  the  termination  of the  Trust and of each
other trust heretofore  formed by the Seller,  acquiesce,  petition or otherwise
invoke  or cause the  Seller  or the Trust to invoke in any court or  government
authority  for the purpose of commencing or sustaining a case against the Seller
or the Trust under any federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Seller or the Trust or any substantial part of its
property, or ordering the winding up or liquidation of the affairs of the Seller
or the Trust.

     Section 9.9 No Recourse.  Each Certificateholder by accepting a Certificate
(or any  interest  therein)  acknowledges  that such  Person's  Certificate  (or
interest therein) represents beneficial interests in the Trust only and does not
represent  interests  in  or  obligations  of  the  Seller,  the  Servicer,  the
Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate thereof
and no recourse, either directly or indirectly,  may be had against such parties
or their assets,  except as may be expressly set forth or  contemplated  in this
Agreement, the Certificates or the Basic Documents. Except as expressly provided
in the Basic Documents, none of the Seller, the Servicer or the Owner Trustee in
their respective  individual  capacities,  or any of their respective  partners,
beneficiaries,  agents, officers, directors, employees or successors or assigns,
shall be personally  liable for, or shall recourse be had to any of them for the
distribution  of any amount  with  respect to the  Certificates  or the  Trust's
performance  of, or omission to perform,  any  obligations  or  indemnifications
contained in the Certificates,  this Agreement or the Basic Documents,  it being
expressly  understood  that such  Certificateholder  obligations  have been made
solely by the Trust. Each  Certificateholder  by the acceptance of a Certificate
(or  beneficial  interest  therein)  agrees except as expressly  provided in the
Basic  Documents,  in the event of nonpayment of any amounts with respect to the
Certificates,  it shall have no claim against any of the  foregoing  Persons for
any deficiency,  loss or claim therefrom. In the event that any of the foregoing
covenants of each  Certificateholder  and Certificate Owner is prohibited by, or
declared illegal or otherwise  unenforceable against any such  Certificateholder
or Certificate  Owner under  applicable  law by any court or other  authority of
competent  jurisdiction,  and, as a result, a  Certificateholder  or Certificate
Owner is deemed to have an interest in any assets of the Seller or any Affiliate
of the Seller other

                                       28
<PAGE>

than the Trust ("other assets"),  each  Certificateholder  and Certificate Owner
agrees that (i) its claim against any such other assets shall be, and hereby is,
subject and  subordinate  in all respects to the rights of other Persons to whom
rights in the other assets have been  expressly  granted  ("entitled  Persons"),
including to the payment in full of all amounts owing to such entitled  Persons,
and (ii) the  covenant  set forth in the  preceding  clause  (i)  constitutes  a
"subordination  agreement" within the meaning of, and subject to, Section 510(a)
of the Bankruptcy Code.

     Section 9.10  Headings.  The headings of the various  Articles and Sections
herein are for  convenience  of reference only and shall not define or limit any
of the terms or provisions hereof.

     Section 9.11 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS,  AND THE OBLIGATIONS,  RIGHTS AND REMEDIES OF THE PARTIES  HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 9.12 [Reserved]

     Section 9.13  Indemnification  by and  Reimbursement  of the Servicer.  The
Owner  Trustee  acknowledges  and agrees to  reimburse  (i) the Servicer and its
directors,  officers, employees and agents in accordance with Section 6.03(b) of
the Trust Sale and Servicing  Agreement  and (ii) the Seller and its  directors,
officers, employees and agents in accordance with Section 3.04 of the Trust Sale
and Servicing Agreement.  The Owner Trustee further acknowledges and accepts the
conditions  and  limitations  with  respect  to  the  Servicer's  obligation  to
indemnify,  defend and hold the Owner  Trustee  harmless as set forth in Section
6.01(a)(iv) of the Trust Sale and Servicing Agreement.

     Section 9.14 Effect of Amendment and  Restatement.  It is the intent of the
parties hereto that this Trust Agreement  shall as of June 26, 2001,  replace in
its entirety the Original Trust  Agreement;  provided,  that with respect to the
period of time  from  June 15,  2001  through  June 26,  2001,  the  rights  and
obligations  of the parties shall be governed by the Original  Trust  Agreement;
provided  further,  that the amendment  and  restatement  of the Original  Trust
Agreement  shall  not  effect  any  of  the  grants,  conveyances  or  transfers
contemplated  by the Original Trust Agreement to have occurred prior to the date
hereof.

                                    * * * * *

                                       29
<PAGE>

     IN WITNESS WHEREOF,  the parties hereto have caused this Trust Agreement to
be duly executed by their respective  officers  hereunto duly authorized,  as of
the day and year first above written.

                                   BANKERS TRUST (DELAWARE),
                                   as Owner Trustee

                                   By:  __________________________
                                   Name:
                                   Title:

                                   CAPITAL AUTO RECEIVABLES, INC.

                                   By:     R. L. STRAUB
                                          __________________________
                                   Name:   R. L. Straub
                                   Title:  Manager - Securitization

                                       30
<PAGE>

                                                                       EXHIBIT A

NUMBER R-                                                         $_____________

                                                                   CUSIP NO.____

                       SEE REVERSE FOR CERTAIN DEFINITIONS

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

                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2001-2

                     FLOATING RATE ASSET BACKED CERTIFICATE

     evidencing a fractional  undivided interest in the Trust, as defined below,
     the property of which includes a pool of retail  instalment  sale contracts
     secured  by new  automobiles  and  light  trucks  and sold to the  Trust by
     Capital Auto Receivables, Inc.

     (This  Certificate  does not  represent  an  interest in or  obligation  of
     Capital Auto Receivables,  Inc.,  General Motors Acceptance  Corporation or
     General Motors Corporation or any of their respective affiliates, except to
     the extent described in the Basic Documents.)

     THIS CERTIFIES THAT Capital Auto Receivables,  Inc. is the registered owner
of a nonassessable,  fully-paid,  fractional  undivided interest in Capital Auto
Receivables Asset Trust 2001-2 (the "Trust") formed by Capital Auto Receivables,
Inc., a Delaware corporation.

                                        1
<PAGE>

     The Trust was created pursuant to a trust  agreement,  dated as of June 15,
2001  (as  amended  and  restated  as of  June  26,  2001  and  as  amended  and
supplemented from time to time, the "Trust  Agreement"),  between the Seller and
Bankers Trust (Delaware),  as owner trustee (the "Owner Trustee"),  a summary of
certain of the pertinent  provisions of which is set forth below.  To the extent
not  otherwise  defined  herein,  the  capitalized  terms used  herein  have the
meanings assigned to them in the Trust Agreement.

     This Certificate is one of the duly authorized  Certificates  designated as
"Floating Rate Asset Backed Certificates" (the "Certificates"). This Certificate
is issued under and is subject to the terms,  provisions  and  conditions of the
Trust  Agreement,  the terms of which are  incorporated  herein by reference and
made a part hereof,  to which Trust Agreement the holder of this  Certificate by
virtue of the acceptance hereof assents and by which such holder is bound.

     Under the Trust  Agreement,  there shall be  distributed on the 15th day of
each month or, if such 15th day is not a Business  Day, the next  Business  Day,
commencing  on July 16, 2001 (each,  a  "Distribution  Date"),  to the person in
whose name this Certificate is registered on the related Record Date (as defined
below), such Certificateholder's  fractional undivided interest in the amount of
interest  on  and  distributions  in  respect  of  Certificate   Balance  to  be
distributed to Certificate holders on such Distribution Date; provided, however,
Certificateholders  shall not  receive  payments  in respect of the  Certificate
Balance  until all the  Notes  have been  paid (or  provided  for) in full.  The
"Record Date," with respect to any Distribution  Date, means the last day of the
preceding Monthly Period.

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

     The holder of this  Certificate  acknowledges and agrees that its rights to
receive  distributions  in respect of this  Certificate are  subordinated to the
rights of the  Noteholders as and to the extent  described in the Trust Sale and
Servicing Agreement.

     It  is  the   intent   of  the   Seller,   the   Owner   Trustee   and  the
Certificateholders  that, for purposes of federal income, state and local income
and franchise  taxes,  Michigan  single business tax and any other taxes imposed
upon,  measured by or based upon gross or net income, the Trust shall be treated
as either  (A) a  division  of the  Seller,  or any  other  single  Person,  and
disregarded as a separate  entity,  if all  Certificates are owned solely by the
Seller or by such single Person,  or (B) a partnership if the  Certificates  are
owned by more than one  Person.  Except as  otherwise  required  by  appropriate
taxing authorities, the Seller and the other Certificateholders by acceptance of
a  Certificate  agree to  treat,  and to take no  action  inconsistent  with the
treatment of, the Certificates

                                        2
<PAGE>

for such tax purposes as interests in such a disregarded  entity or  partnership
as described in the previous sentence.

     Each  Certificateholder  or  Certificate  Owner  by  its  acceptance  of  a
Certificate   (or  an  interest   therein)   covenants   and  agrees  that  such
Certificateholder  shall  not,  prior to the date  which is one year and one day
after the termination of the Trust,  acquiesce,  petition or otherwise invoke or
cause  the  Seller  or the  Trustee  to  invoke  the  process  of any  court  or
governmental  authority  for the  purpose of  commencing  or  sustaining  a case
against  the  Seller or the  Trustee  under  any  federal  or state  bankruptcy,
insolvency,  reorganization or similar law or appointing a receiver, liquidator,
assignee,  trustee,  custodian,  sequestrator  or other similar  official of the
Seller or the Trustee or any substantial  part of its property,  or ordering the
winding up or liquidation of the affairs of the Seller or the Trustee.

     Except as otherwise provided in the Trust Agreement,  distributions on this
Certificate  shall be made as  provided  in the  Trust  Agreement  by the  Owner
Trustee by wire transfer or check mailed to the  Certificateholder  of record in
the  Certificate   Register  without  the  presentation  or  surrender  of  this
Certificate  or the making of any notation  hereon,  except that with respect to
Certificates  registered  on the Record  Date in the name of the  nominee of the
Clearing Agency  (initially,  such nominee to be Cede & Co.),  payments shall be
made by wire transfer in immediately  available funds to the account  designated
by such  nominee.  Except  as  otherwise  provided  in the Trust  Agreement  and
notwithstanding  the above, the final  distribution on this Certificate shall be
made after due notice by the Owner Trustee of the pendency of such  distribution
and only upon  presentation  and  surrender  of this  Certificate  at the office
maintained  for such purpose by the Owner  Trustee in the Borough of  Manhattan,
the City of New York.

     Reference is hereby made to the further  provisions of this Certificate set
forth on the reverse  hereof,  which further  provisions  shall for all purposes
have the same effect as if set forth at this place.

     Unless the certificate of authentication hereon shall have been executed by
an authorized officer of the Owner Trustee by manual signature, this Certificate
shall not entitle the holder hereof to any benefit under the Trust  Agreement or
the Trust Sale and Servicing Agreement or be valid for any purpose.

     THIS  CERTIFICATE  SHALL BE  CONSTRUED IN  ACCORDANCE  WITH THE LAWS OF THE
STATE OF DELAWARE,  WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS,  RIGHTS AND REME DIES OF THE PARTIES  HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

                                        3
<PAGE>

     IN WITNESS  WHEREOF,  the Owner Trustee,  on behalf of the Trust and not in
its individual capacity, has caused this Certificate to be duly executed.

Dated: June 26, 2001            CAPITAL AUTO RECEIVABLES ASSET
                                TRUST 2001-2

                                BANKERS TRUST (DELAWARE),
                                not in its individual capacity but solely as
                                Owner Trustee

                                By: ____________________________
                                                  Name: Charles C. Greiter
                                                  Title:   Attorney-in-Fact

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Certificates  referred to in the within-mentioned  Trust
Agreement.

BANKERS TRUST (DELAWARE),               BANKERS TRUST  (DELAWARE),
not in its individual                   not in its  individual
capacity but solely             OR      capacity but solely
as Owner Trustee                        as Owner Trustee
                                        by Bankers Trust Company,
                                        as Authenticating Agent

By:       CHARLES C. GREITER            By:       CHARLES C. GREITER
    _________________________               _________________________
    Name:  Charles C. Greiter                Name:  Charles C. Greiter
    Title: Attorney-in-Fact                  Title: Attorney-in-Fact

                                        4

<PAGE>

                             REVERSE OF CERTIFICATE

     The  Certificates do not represent an obligation of, or an interest in, the
Seller, the Servicer,  General Motors  Corporation,  the Indenture Trustee,  the
Owner  Trustee  or any  affiliates  of any of them  and no  recourse  may be had
against such parties or their  assets,  except as may be expressly  set forth or
contemplated  herein  or in the  Trust  Agreement  or the  Basic  Documents.  In
addition,  this  Certificate  is not  guaranteed by any  governmental  agency or
instrumentality  and is limited in right of payment to certain  collections  and
recoveries with respect to the Receivables  (and certain other amounts),  all as
more specifically set forth herein and in the Trust Agreement and the Trust Sale
and  Servicing  Agreement.  A copy of  each  of the  Trust  Sale  and  Servicing
Agreement and the Trust  Agreement may be examined  during normal business hours
at the  principal  office  of the  Seller,  and at such  other  places,  if any,
designated by the Seller, by any Certificateholder upon written request.

     The Trust Agreement permits, with certain exceptions therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Seller and the rights of the Certificateholders under the Trust Agreement at any
time by the Seller and the Owner  Trustee with the consent of the Holders of the
Notes evidencing not less than a majority of the Outstanding Amount of the Notes
as of  the  close  of  the  preceding  Distribution  Date  and  the  consent  of
Certificateholders  whose Certificates  evidence not less than a majority of the
Voting  Interests as of the close of the preceding  Distribution  Date. Any such
consent by the Holder of this  Certificate  shall be  conclusive  and binding on
such holder and on all future Holders of this Certificate and of any Certificate
issued upon the transfer hereof or in exchange herefor or in lieu hereof whether
or not  notation  of such  consent  is made  upon  this  Certificate.  The Trust
Agreement also permits the amendment thereof, in certain circumstances,  without
the consent of the Holders of any of the Certificates or the Notes.

     As  provided  in the Trust  Agreement  and  subject to certain  limitations
therein set forth,  the  transfer of this  Certificate  is  registerable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer at the offices or agencies of the Certificate  Registrar  maintained by
the Owner Trustee in the City of New York,  accompanied by a written  instrument
of  transfer  in form  satisfactory  to the Owner  Trustee  and the  Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing,  and thereupon one or more new Certificates of authorized
denominations evidencing the same aggregate interest in the Trust will be issued
to the designated transferee.  The initial Certificate Registrar appointed under
the Trust Agreement is Bankers Trust Company, New York, New York.

     The Book-Entry  Certificates  are issuable only as registered  Certificates
without coupons in denominations  of $20,000 or integral  multiples of $1,000 in
excess  thereof;  provided,  however,  that one  Certificate  may be issued in a
denomination  that  includes  any  residual  amount.  As  provided  in the Trust
Agreement and subject to certain limitations therein set forth, Certificates

                                        1
<PAGE>

are exchangeable for new Certificates of authorized denominations evidencing the
same aggregate  denomination,  as requested by the Holder surrendering the same;
provided,  however,  that  no  Certificate  may  be  subdivided  such  that  the
denomination  of any  resulting  Certificate  is less than  $20,000.  No service
charge shall be made for any such registration of transfer or exchange,  but the
Owner  Trustee  or  the  Certificate  Registrar  may  require  payment  of a sum
sufficient  to  cover  any tax or  governmental  charge  payable  in  connection
therewith.

     The Owner  Trustee,  the  Certificate  Registrar and any agent of the Owner
Trustee  or the  Certificate  Registrar  may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes,  and none of the
Owner Trustee, the Certificate  Registrar or any such agent shall be affected by
any notice to the contrary.

     The obligations and responsibilities created by the Trust Agreement and the
Trust created  thereby shall  terminate in accordance  with Article VII of Trust
Agreement.

                                        2
<PAGE>

                                   ASSIGNMENT

     FOR VALUE RECEIVED the undersigned hereby sells,
assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

------------------------------------------------------------------
(Please print or type name and address, including postal zip code, of assignee)

------------------------------------------------------------------
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

_________________________________________________________  Attorney  to transfer
said Certificate on the books of the Certificate  Registrar,  with full power of
substitution in the premises.

Dated:                       _____________________________*
                               Signature Guaranteed:

                             _____________________________*

* NOTICE:  The signature to this  assignment must correspond with the name as it
appears upon the face of the within  Certificate  in every  particular,  without
alteration,   enlargement  or  any  change  whatever.  Such  signature  must  be
guaranteed by a member firm of the New York Stock Exchange or a commercial  bank
or trust company.

<PAGE>

                                                                       EXHIBIT B

                             CERTIFICATE OF TRUST OF
                   CAPITAL AUTO RECEIVABLES ASSET TRUST 2001-2

     THIS  Certificate of Trust of Capital Auto  Receivables  Asset Trust 2001-2
(the "Trust") is being duly executed and filed by the  undersigned,  as trustee,
to form a  business  trust  under  the  Delaware  Business  Trust  Act (12  Del.
C.ss.3801 et seq.) (the "Act").

     1. Name.  The name of the  business  trust  formed  hereby is Capital  Auto
Receivables Asset Trust 2001-2.

     2. Delaware  Trustee.  The name and business  address of the trustee of the
Trust in the State of Delaware are Bankers Trust  (Delaware),  E.A.  Delle Donne
Corporate Center,  Montgomery Building,  1011 Centre Road, Wilmington,  Delaware
19805-1266.

     3. This  Certificate  of Trust  shall be  effective  on June 15,  2001.  IN
WITNESS  WHEREOF,  the  undersigned  has executed this  Certificate  of Trust in
accordance with Section 3811(a)(1) of the Act.

                            BANKERS TRUST (DELAWARE), not in its
                            individual capacity but solely as Owner Trustee

                            By: _______________________________
                            Name:
                            Title:Prepared by MERRILL CORPORATION

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SHARE PURCHASE AGREEMENT  

 by and among  

 COMMERCE ONE, INC.,  

 NEW COMMERCE ONE HOLDING, INC.  

 and  

 SAP AG  

 June 28, 2001  

  

 
 

TABLE OF CONTENTS    
  

	Article
	 	 
	 	 
	 	Page

	1.	 	Agreement To Sell And Purchase Shares	 	1
	 	 	1.1	 	Sale and Purchase of Shares	 	1
	 	 	1.2	 	Closing	 	1
	 	 	1.3	 	Legends; Stop Transfer Orders	 	2
	

2.	
 	

Representations and Warranties of Commerce One	
 	

2
	 	 	2.1	 	Organization, Standing and Power	 	2
	 	 	2.2	 	Authority; Binding Nature of Agreements	 	3
	 	 	2.3	 	Non-Contravention; Consents	 	3
	 	 	2.4	 	Capital Structure	 	3
	 	 	2.5	 	Litigation	 	4
	 	 	2.6	 	Brokers	 	4
	 	 	2.7	 	SEC Filings; Financial Statements	 	4
	 	 	2.8	 	No Undisclosed Liabilities, Absence of Certain Events and Changes	 	5
	 	 	2.9	 	Intellectual Property	 	5
	 	 	2.10	 	Material Contracts	 	5
	 	 	2.11	 	Sufficiency of Assets	 	6
	 	 	2.12	 	Compliance with Applicable Law	 	6
	

3.	
 	

Representations and Warranties of SAP AG	
 	

6
	 	 	3.1	 	Organization and Good Standing	 	6
	 	 	3.2	 	Authority; Binding Nature of Agreements	 	7
	 	 	3.3	 	Non-Contravention; Consents	 	7
	 	 	3.4	 	Litigation	 	7
	 	 	3.5	 	Brokers	 	7
	 	 	3.6	 	Investment Representations	 	7
	 	 	3.7	 	Disclosure	 	8
	 	 	3.8	 	Current Common Stock Ownership	 	8
	

4.	
 	

Conditions to Closing	
 	

9
	 	 	4.1	 	Conditions to SAP AG's Obligations	 	9
	 	 	4.2	 	Conditions to Commerce One's Obligations	 	10
	

5.	
 	

Additional Agreements	
 	

10
	 	 	5.1	 	Filings and Consents	 	10
	 	 	5.2	 	Covenant to Satisfy Conditions	 	11
	 	 	5.3	 	Further Assurances	 	11
	 	 	5.4	 	Adjustment to Number and Type of Securities and Purchase Price	 	11
	 	 	5.5	 	No Impairment of Rights	 	12
	 	 	5.6	 	Notification of Certain Matters	 	12
	 	 	5.7	 	Public Announcements	 	12
	 	 	5.8	 	Execution of Other Agreements	 	12
	

6.	
 	

Termination	
 	

13
	 	 	6.1	 	Termination Events	 	13
	 	 	6.2	 	Effect of Termination	 	13
	

7.	
 	

Miscellaneous	
 	

13
	 	 	7.1	 	Interpretation	 	13
	 	 	7.2	 	Fees and Expenses	 	13

i

 

	 	 	7.3	 	Governing Law; Jurisdiction and Venue	 	14
	 	 	7.4	 	Specific Enforcement	 	14
	 	 	7.5	 	No Third Party Beneficiaries	 	14
	 	 	7.6	 	Entire Agreement	 	15
	 	 	7.7	 	Severability	 	15
	 	 	7.8	 	Amendment and Waiver	 	15
	 	 	7.9	 	Assignment and Successors	 	15
	 	 	7.10	 	Relationship of the Parties	 	15
	 	 	7.11	 	Notices	 	15
	 	 	7.12	 	Facsimile; Counterparts	 	16
	 	 	7.13	 	Survival of Representations and Warranties	 	16

EXHIBIT
A — CERTAIN DEFINITIONS

EXHIBIT B — FORM OF OPINION OF WSGR

EXHIBIT C — [RESERVED]

EXHIBIT D — FORM OF SAP AG INVESTOR RIGHTS AGREEMENT

EXHIBIT E — FORM OF STANDSTILL AGREEMENT 

ii

  

EXECUTION COPY  

  
 

    SHARE PURCHASE AGREEMENT    
  

    This Share Purchase Agreement (this "Agreement") is entered into as of June 28, 2001, by and between
Commerce One, Inc., a Delaware corporation ("Commerce One"), New Commerce One Holding, Inc., a Delaware corporation, ("New Commerce One
Holding") and SAP Aktiengesellschaft, a stock corporation incorporated under the laws of the Federal Republic of Germany ("SAP AG"). 

    WHEREAS,
SAP AG wishes to purchase from Commerce One, and Commerce One wishes to issue and sell to SAP AG, certain shares of the Common Stock, par value $0.0001 per share, of Commerce
One; 

    WHEREAS,
SAP AG and Commerce One wish to provide for additional rights with respect to the shares of Common Stock to be purchased pursuant to this Agreement and to make certain
representations, warranties and covenants in connection with the purchase and sale of such shares of Common Stock; 

    WHEREAS,
New Commerce One Holding will assume all of the rights and obligations of Commerce One hereunder upon the consummation of the reorganization of Commerce One into a holding
company structure with New Commerce One Holding as the publicly-traded holding company (the "Reorganization"); and 

    WHEREAS,
certain defined terms used herein are defined in Exhibit A to this Agreement. 

    NOW,
THEREFORE, in consideration of the mutual promises and covenants herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows: 

    1.  Agreement To Sell And Purchase Shares  

          1.1  Sale and Purchase of Shares.  Subject to the terms and conditions hereof, Commerce One agrees to
issue and sell to SAP AG 47,484,767 shares of Common Stock in exchange for $225,552,643 (the "Aggregate Purchase Price"), and SAP AG, subject to the
terms and conditions hereof, agrees to purchase shares of Common Stock in exchange for the Aggregate Purchase Price. 

          1.2  Closing  

                (a)
The closing of the purchase and sale of Common Stock hereunder (the "Closing") shall take place at 10 a.m. on the second
business day following the satisfaction or waiver of the closing conditions described in Section 4 ("Closing Date") at the offices of Wilson
Sonsini Goodrich & Rosati, 650 Page Mill Road, Palo Alto, California 94304, or at such other time and place as Commerce One and SAP AG shall mutually agree. Subject to the terms and conditions
of this Agreement, at the Closing, SAP AG shall deliver to Commerce One a check or a wire transfer of immediately available funds in the amount of $225,552,643; and Commerce One shall deliver to SAP
AG one or more stock certificates (as requested by SAP AG) representing the 47,484,767 shares of Common Stock (as adjusted by the following proviso, the
"Shares"); provided, however, that if the issuance of such number of Shares to SAP AG hereunder would
require Commerce One to obtain stockholder approval of the issuance pursuant to Rule 4350(i)(1)(B) or (D) of the Nasdaq National Market Issuer Designation Requirements or under the DGCL,
the number of shares to be issued shall be reduced to the maximum number of shares that may be issued without stockholder approval (but in no event shall SAP AG be required to purchase less than
40,000,000 shares of Common Stock hereunder) and the purchase price shall be appropriately adjusted on pro rata basis based on a price per share of $4.75. 

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                (b) When issued pursuant to the terms and conditions of this Agreement, the shares shall be free and clear of any and all Liens (other than any Liens
created by the Related Equity
Agreements and any restrictions imposed by applicable securities laws). 

          1.3  Legends; Stop Transfer Orders  

                (a)
All certificates representing the Shares shall bear the following legends: 

                      (i)
"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"). SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF REGISTRATION OR AN EXEMPTION THEREFROM. COMMERCE
ONE MAY REQUIRE AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT THAT A PROPOSED TRANSFER OR SALE IS IN COMPLIANCE WITH THE ACT." 

                      (ii)
"THE SALE OR TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY THE TERMS OF AN AMENDED AND RESTATED STANDSTILL AND STOCK RESTRICTION AGREEMENT, DATED AS
OF JUNE 28, 2001, BY AND BETWEEN COMMERCE ONE, INC., NEW COMMERCE ONE HOLDING, INC. AND SAP AG. COPIES OF THE AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDERS
OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE ISSUER OF THESE SHARES AT THE PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER." 

                      (iii)
Any legend required by the blue sky or securities laws of any state or jurisdiction to the extent such laws are applicable to the shares represented by the certificate so
legended. 

                      (iv)
A legend stating such certificate also represents certain rights issued under Commerce One's Stockholder Rights Plan. 

                (b)
The certificates representing the Shares will be subject to a stop transfer order with Commerce One's transfer agent that restricts the transfer of the Shares except in
compliance with this Agreement and the Standstill Agreement. 

                (c)
Upon request of SAP AG at any time when any of the Shares are no longer subject to the restrictions set forth in any of the legends described in Section 1.3(a), Commerce
One shall, and shall cause its transfer agent to, remove such restrictive legends from the certificates representing such Shares and to cancel the stop order referred to in Section 1.3(b) with
respect to such Shares. 

    2.  Representations and Warranties of Commerce One  

    Commerce
One hereby represents and warrants to SAP AG as follows (except as described in the Commerce One disclosure schedule attached hereto): 

          2.1  Organization, Standing and Power.  Commerce One is, and on the Closing Date will be, a corporation
duly organized, validly existing and in good standing under the laws of the State of Delaware. Commerce One has, and on the Closing Date will have, the corporate power and authority to own its
properties and to carry on its business as now being conducted (or as being conducted on the Closing Date) and is, and on the Closing Date will be, duly qualified as a foreign corporation to do
business and is, and on the Closing Date will be, in good standing in each jurisdiction in which the failure to be
so qualified would have, or would be reasonably expected to have, a Material Adverse Effect on Commerce One. 

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          2.2  Authority; Binding Nature of Agreements.  Commerce One has all requisite corporate power and
authority to enter into this Agreement and any Related Equity Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this
Agreement and any Related Equity Agreements to which it is a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action
on the part of Commerce One. No vote or approval of the stockholders of Commerce One is necessary in connection with the execution, delivery and performance by Commerce One of this Agreement or any
Related Equity Agreement to which it is a party. This Agreement and any Related Equity Agreement to which Commerce One is a party have been duly executed and delivered by Commerce One and constitute
the valid and binding obligations of Commerce One, enforceable in accordance with their terms. 

          2.3  Non-Contravention; Consents  

                (a)
Neither the execution and delivery by Commerce One, nor the consummation or performance by Commerce One of any of the transactions to be consummated or performed by it under this
Agreement or any Related Equity Agreement, will directly or indirectly (with or without notice or lapse of time): (i) violate any provision of Commerce One's Certificate of Incorporation or
Bylaws, (ii) constitute or result in a breach or default by Commerce One or any of its subsidiaries, or give rise to a right of termination, amendment, cancellation or acceleration on the part
of any other party, or result in the creation or imposition of any Lien on Commerce One's assets, under any agreement or instrument to which Commerce One or any of its subsidiaries is a party or by
which Commerce One or any of its subsidiaries is bound, which breach, default, termination or Lien would have, or would be reasonably expected to have, a Material Adverse Effect on Commerce One, or
(iii) constitute a violation by Commerce One or any of its subsidiaries of any Requirement of Law. 

                (b)
Except for the filings under the Hard-Scott-Rodino Antitrust Improvements Act of 1976, as amended, no consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any Governmental Authority or other Person on the part of Commerce One or any of its subsidiaries is required in connection with the execution,
delivery and performance by Commerce One of this Agreement and the Related Equity Agreements or the consummation of the transactions contemplated hereby and thereby. 

                (c)
Commerce One is not in violation of any provision of its Certificate of Incorporation or Bylaws or any other agreement, contract, obligation or commitment, which violation would
materially affect its
ability to perform its obligations under this Agreement or any of the Related Equity Agreements or has, or could reasonably be expected to have, a Material Adverse Effect on Commerce One. 

          2.4  Capital Structure  

                (a)
As of May 31, 2001, the authorized capital stock of Commerce One consists of 950,000,000 shares of Common Stock, $.0001 par value, of which 208,742,610 shares (together
with the associated rights to purchase Series A Participating Preferred Stock) are issued and outstanding on such date, 50,000,000 shares of Preferred Stock, $0.0001 par value, of which 300,000
shares are designated Series A Participating Preferred Stock, $.0001 par value, none of which are issued and outstanding of such date, and 49,700,000 shares of which are undesignated Preferred
Stock, $.0001 par value, none of which are issued or outstanding on such date. All such shares of Commerce One have been duly authorized, and all such issued and outstanding shares have been validly
issued, are fully paid and nonassessable and are free of any Liens or encumbrances other than any Liens or encumbrances created by or imposed upon the holders thereof. Commerce One has also reserved
75,743,739 shares of Common Stock for issuance pursuant to its employee and director stock and option and stock purchase plans (the "Plans"), 23,219,156
of which were issuable upon exercise of such outstanding stock options as of May 31, 2001 and 24,641,051 of which may be issued in connection with Commerce One's 

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employee stock option exchange program. In addition, 200,000 other shares of Common Stock are issuable pursuant to outstanding stock options (other than those described above), warrants, rights,
convertible or exchangeable securities or other agreements as of May 31, 2001. Upon the Reorganization, New Commerce One Holding's certificate of incorporation and bylaws as in effect
immediately following the reorganization will be identical to Commerce One's certificate of incorporation and bylaws, respectively, as in effect immediately prior to the consummation of the
Reorganization, and New Commerce One Holding's capitalization will become identical to the capitalization of Commerce One immediately prior to the consummation of the Reorganization, except that an
additional 28,800,000 shares of Common Stock will be issued and outstanding following the consummation of the Reorganization. Except as contemplated by this Agreement, there are no other options,
warrants, rights, convertible or exchangeable securities, commitments, or agreements of any character to which Commerce One is a party or by which it is bound obligating Commerce One to issue,
deliver, sell, repurchase or redeem, or cause to be issued, delivered, sold, repurchased or redeemed, any shares of the capital stock of Commerce One or any securities convertible into or exchangeable
for capital stock of Commerce One or obligating Commerce One to grant, extend or enter into any such option, warrant, right, commitment or agreement. There are no outstanding bonds, debentures, notes
or other obligations issued by Commerce One which permit the holders thereof to vote with the stockholders of Commerce One on any matter. Except as contemplated by this Agreement, no change in the
capitalization of Commerce One or New Commerce One Holding has occurred since May 31, 2001 and through the date of this Agreement, except for (i) issuance of stock options and other
rights under Commerce One's and its affiliates' stock and option and stock purchase plans, (ii) exercise of outstanding options and other rights under Commerce One's and its affiliates' stock
and option and stock purchase plans. 

                (b)
The shares of Common Stock to be issued pursuant to this Agreement have been duly authorized, and when issued to SAP AG in accordance with the terms hereof, will be validly
issued, fully paid and non-assessable, free of any Liens except as provided in this Agreement or any of the Related Equity Agreements or federal and state applicable securities laws.
Assuming that the representations and warranties of SAP AG in Section 3.6 hereof are truthful and accurate, the issuance and sale of the Shares pursuant to this Agreement will be exempt from
the registration requirements of Section 5 of the Securities Act. 

          2.5  Litigation.  As of the date hereof, there are no claims, actions, suits, proceedings or
investigations pending or, to the knowledge of Commerce One, threatened against Commerce One or any of its subsidiaries or any of their properties or assets before any Governmental Authority which
(i) in any manner challenge or seek to prevent, enjoin, alter or materially delay the transactions contemplated by this Agreement or (ii) could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on Commerce One. None of Commerce One or any of its subsidiaries or any of their assets or properties (whether leased or owned) are subject
to any orders, judgments, injunctions or decrees which could reasonably be expected to have a Material Adverse Effect on Commerce One. 

          2.6  Brokers.  Except for the investment bank(s) previously disclosed to SAP AG, whose fees and expenses
will be paid by Commerce One, Commerce One has not granted or become obligated to pay, or taken any action that likely would result in any Person claiming to be entitled to receive from Commerce One,
any brokerage commission, finder's fee or similar commission or fee in connection with any of the transactions contemplated by this Agreement. 

          2.7  SEC Filings; Financial Statements  

                (a)
Commerce One has timely and properly filed all forms, schedules, reports, prospectuses, proxy statements and documents required to be filed by Commerce One with the SEC (the
"Commerce One SEC Reports") and has made available true and correct copies thereof to SAP 

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AG. The Commerce One SEC Reports (i) at the time they were filed (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing) complied in all
material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations promulgated thereunder, and (ii) did not at the time they
were filed (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing) contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Commerce One makes no representation
or warranty whatsoever concerning the Commerce One SEC Reports as of any time other than the time they were filed, amended or superseded. None of Commerce One's subsidiaries are required to file any
forms, reports or other documents with the SEC. 

                (b)
Each of the consolidated financial statements (including, in each case, any related notes thereto) (the "Commerce One Financial
Statements") contained in the Commerce One SEC Reports has been prepared in accordance with GAAP applied on a consistent basis throughout the period involved (except as may be
indicated in the notes thereto) and complied in all material respects with the rules and regulations of the SEC. Each of the Commerce One Financial Statements fairly presents in all material respects
the consolidated financial position of Commerce One and its subsidiaries as at the respective dates thereof and the consolidated results of its operations and cash flows for the periods indicated,
except that the unaudited interim financial statements were or are subject to normal and recurring year-end adjustments which were not or are not expected to be, individually or in the
aggregate, materially adverse to Commerce One and its subsidiaries taken as a whole. 

          2.8  No Undisclosed Liabilities, Absence of Certain Events and Changes.  Except as otherwise disclosed
in the Commerce One SEC Reports, since March 31, 2001 neither Commerce One nor any of its subsidiaries has incurred any liabilities or obligations (whether absolute or contingent) other than
those arising from operations in the ordinary course of business consistent with past practice. Since December 31, 2000, except as disclosed in the Commerce One SEC Reports filed with the SEC
and publicly available prior to the date hereof, there has not been any event, occurrence, development or circumstances and there has been no change in or development with respect to the business,
condition (financial or otherwise), assets, liabilities, properties, operations or results of operations of Commerce One and its subsidiaries except events, occurrences, developments, circumstances,
changes and developments which have not had or could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on Commerce One. 

          2.9  Intellectual Property.  Commerce One and its subsidiaries own, free and clear of all Liens, and
have good and marketable title to, or hold adequate licenses or otherwise possess all such rights as are necessary to use all patents (and applications therefor), patent disclosures, trademarks,
service marks, trade names, copyrights (and applications therefor), inventions, discoveries, processes, know-how, scientific, technical, engineering and marketing data, formulae and
techniques (collectively, "Intellectual Property") necessary for the conduct of their business as now conducted. To Commerce One's knowledge, the business of Commerce One as presently conducted does
not infringe upon or violate any Intellectual Property rights of others except where such infringement or violation, individually or in the aggregate, would not have a Material Adverse Effect on
Commerce One. 

          2.10  Material Contracts.  Except as disclosed in the Commerce One SEC Reports, neither Commerce One nor
any of its subsidiaries is, nor to the knowledge of Commerce One is any other party, in material default under, or in material breach or material violation of any "material contracts" within the
meaning of Item 601 of Regulation S-K of the SEC to which Commerce One or any of its subsidiaries is a party or any material contracts concerning Commerce One's Intellectual
Property (collectively, "Commerce One Material Contracts"). All of the Commerce One Material Contracts are valid, binding and in full force and effect in all material respects and enforceable by
Commerce One in 

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accordance with their respective terms. No event has occurred which, with the giving of notice or passage of time or both, would constitute a material default by Commerce One or any of its
subsidiaries or, to the knowledge of Commerce One, any other party under any Commerce One Material Contract. 

          2.11  Sufficiency of Assets.  Commerce One has good and marketable title to its property and assets,
free and clear of all Liens, except such Liens which arise in accordance with the ordinary course of business and do not materially impair Commerce One's ownership or use of such property or assets.
With respect to the property and assets it leases, Commerce One is in compliance with such leases and, to its knowledge, holds a valid leasehold interest free of any Liens. The assets and properties
of Commerce One and its subsidiaries (including Commerce One's Intellectual Property), whether owned, leased, licensed or otherwise held, constitute (i) all of the material assets and rights
that are used by Commerce One and its subsidiaries in the operation of their business as it is being conducted as of the date hereof and (ii) all the property, real and personal, tangible and
intangible, necessary for Commerce One and its subsidiaries to conduct such business as it is being conducted as of the date hereof. 

          2.12  Compliance with Applicable Law.  Commerce One and its subsidiaries are in compliance in all
material respects with all Requirements of Law of any Governmental Authority, including those relating to environmental, occupational health and safety, fair employment and equal opportunity, and no
claims or complaints from any Governmental Authorities or other parties have been received by Commerce One or any of its subsidiaries, and, to the knowledge of Commerce One, no claims or complaints
are threatened alleging that Commerce One or any of its subsidiaries is in violation of any such Requirement of Law except for such claims or complaints which could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on Commerce One. 

          2.13  Section 203 Approval.  The Board of Directors of each of Commerce One and New Commerce One
Holding have "approved," for purposes of Section 203(a)(1) of the DGCL, (a) the acquisition pursuant hereto by SAP or any Purchaser Controlled Entity (as defined in the Standstill
Agreement) of the Shares and (b) the acquisition by SAP or any Purchaser Controlled Entity of any additional shares of Commerce One Common Stock up to the Standstill Limit (as defined in the
Standstill Agreement, which Standstill Limit shall be applicable with respect to the approval described in this Section 2.13 irrespective of whether the Standstill Agreement is in effect at
such time or at any time in the future), and all other transactions contemplated hereby or by the Standstill Agreement pursuant to which SAP or any Purchaser Controlled Entity becomes an "interested
stockholder" under Section 203 of the DGCL. 

          2.14  Amendment of Rights Agreement.  Commerce One's Board of Directors has amended that certain
Preferred Stock Rights Agreement, dated as of April 18, 2001, by and between Commerce One and Fleet National Bank as Rights Agent (the "Rights Agreement"), in order to permit the transactions
contemplated herein, such that SAP AG shall be excepted from the operation of the Rights Agreement only to the extent of the Standstill Limit specified in the Standstill Agreement (irrespective of
whether the Standstill Agreement is in effect at such time or at any time in the future). 

    3.  Representations and Warranties of SAP AG  

    SAP
AG hereby represents and warrants to Commerce One as follows: 

          3.1  Organization and Good Standing.  SAP AG is a corporation duly organized, validly existing and in
good standing under the laws of the Federal Republic of Germany. SAP AG has the corporate power and authority to own its properties and to carry on its business as now being conducted and is duly
qualified to do business and is in good standing in each jurisdiction in which the failure to be so qualified would have a Material Adverse Effect on SAP AG. 

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          3.2  Authority; Binding Nature of Agreements.  SAP AG has all requisite corporate power and authority to
enter into this Agreement and any Related Equity Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and
any Related Equity Agreements to which it is a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of
SAP AG. This Agreement and any Related Equity Agreements to which SAP AG is party have been duly executed and delivered by SAP AG and constitute the valid and binding obligations of SAP AG,
enforceable in accordance with their terms. 

          3.3  Non-Contravention; Consents  

                (a)
Neither the execution and delivery by SAP AG, nor the consummation or performance by SAP AG of any of the transactions to be consummated or performed by it under this Agreement
or the Related Equity Agreements, will directly or indirectly (with or without notice or lapse of time): (i) violate any provision of SAP AG's charter documents, (ii) after giving effect
to the amendment and restatement of the Standstill Agreement effective as of the Closing, constitute or result in a breach or default by SAP AG, or give rise to a right of termination, amendment,
cancellation or acceleration on the part of any other party, or result in the creation or imposition of any Lien on SAP AG's assets, under any agreement or instrument to which SAP AG is a party or by
which SAP AG is bound which breach, default, termination or Lien would have a Material Adverse Effect on SAP AG, or (iii) constitute a violation by SAP AG of any Requirement of Law. 

                (b)
No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Authority on the part of SAP AG is
required in connection with the consummation of the transactions contemplated by this Agreement and the Related Equity Agreements except for any filings to be made after the Closing as required by the
German Competition Act, European Community Treaty Act and Council Regulation 4064/89. 

          3.4  Litigation.  As of the date hereof, there are no actions, suits, proceedings or investigations
pending or, to the knowledge of SAP AG, threatened against SAP AG or any of its property or assets before any Governmental Authority which (i) in any manner challenge or seek to prevent,
enjoin, alter or materially delay the transactions contemplated by this Agreement or (ii) could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on
SAP AG (other than as disclosed in public filings made by SAP AG with the SEC or as disclosed in writing by SAP AG to Commerce One on or before the date hereof). 

          3.5  Brokers.  Except for the investment bank previously disclosed to Commerce One, whose fees and
expenses will be paid by SAP AG, SAP AG has not granted or become obligated to pay, or taken any action that likely would result in any Person claiming to be entitled to receive from SAP AG, any
brokerage commission, finder's fee or similar commission or fee in connection with any of the transactions contemplated by this Agreement. 

          3.6  Investment Representations  

                (a)
SAP AG understands that none of the Shares has been registered under the Securities Act. SAP AG also understands that the Shares are being offered and sold pursuant to an
exemption from registration contained in the Securities Act based in part upon SAP AG's representations contained in this Agreement, and that Commerce One is relying upon the truth and accuracy of SAP
AG's representations, warranties, acknowledgements and understandings with respect to the material facts set forth herein. 

                (b)
SAP AG is acquiring the Shares for SAP AG's own account for investment purposes only, and not with the current intention of making a public distribution thereof. 

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                (c) SAP AG has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to Commerce One so
that it is capable of
evaluating the merits and risks of its investment in Commerce One and has the capacity to protect its own interests. SAP AG, by reason of its business or financial experience, has the capacity to
protect its own interests in connection with the transactions contemplated by this Agreement and the Related Equity Agreements. SAP AG is an "accredited investor" as that term is defined in
Rule 501(a) of Regulation D under the Securities Act. 

                (d)
SAP AG acknowledges that the Shares may be required to be held indefinitely and that SAP AG must bear the economic risk of this investment indefinitely unless the Shares are
subsequently
registered under the Securities Act or an exemption from such registration is available. SAP AG understands that Commerce One's obligations to register the Shares are set forth in the SAP Investor
Rights Agreement. SAP AG also understands that there is no assurance that any exemption from registration under the Securities Act will be available and that, even if available, such exemption may not
allow SAP AG to transfer all or any portion of the Shares under the circumstances, in the amounts or at the times SAP AG might propose. 

                (e)
SAP AG has been advised or is aware of the provisions of Rule 144 under the Securities Act ("Rule 144"), which
permit limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions, including, among other things: (i) the availability of certain current public
information about Commerce One, (ii) the resale occurring not less than one year after a party has purchased and paid for the security to be sold, (iii) the sale being through an
unsolicited "broker's transaction" or in transactions directly with a market maker (as said term is defined under the Exchange Act) and (iv) the number of shares being sold during any
three-month period not exceeding specified limitations. SAP has been advised or is aware that it may be deemed to be an "affiliate" of Commerce One with the meaning of the Securities Act following the
execution of this Agreement. 

                (f)
SAP AG did not receive any information regarding such purchase and sale through any general solicitation or general advertising within the meaning of Rule 502(c) under the
Securities Act. 

          3.7  Disclosure.  SAP AG has received copies of all Commerce One filings with the SEC that SAP AG has
requested. Without limiting Commerce One's obligations with respect to any representations or warranties made by Commerce One in this Agreement, SAP AG has been afforded the opportunity to obtain any
additional information deemed necessary by SAP AG to verify the accuracy of any representations made or information conveyed to SAP AG. SAP AG confirms that all documents records and books pertaining
to its investment in Common Stock and requested by SAP AG have been made available or delivered to SAP AG. SAP AG has had an opportunity to ask questions of and receive answers from Commerce One, or
from a person or persons acting on Commerce One's behalf, concerning the terms and conditions of this investment. 

          3.8  Current Common Stock Ownership.  As of the date of this Agreement, SAP AG beneficially owns
9,817,046 shares of Common Stock. Except for such shares, SAP AG does not own any other equity securities of Commerce One, any options, warrants or other rights to acquire equity securities of
Commerce One or any other securities convertible into equity securities of Commerce One. SAP is not currently in breach of any of the terms and conditions of Section 2.1(a), (d), (e), (f), and
(g) of the Standstill and the Stock Restriction Agreement, dated June 14, 2000, by and between Commerce One and SAP AG. 

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       4.  Conditions to Closing  

          4.1  Conditions to SAP AG's Obligations.  SAP AG's obligation to purchase the Shares is subject to the
satisfaction, at or prior to the purchase of the Shares, of the following respective conditions (any of which may be waived by SAP AG, in whole or in part): 

                (a)
The representations and warranties of Commerce One contained in Sections 2.1, 2.2 and 2.4 shall be true and correct in all material respects, in each case as of the date of this
Agreement and on the Closing Date with the same force and effect as though such representations and warranties had been made on and as of the date of this Agreement and the Closing Date, except for
the representations and warranties in Section 2.4 which address matters only as a particular date, which shall be true and correct in all material respects as of such date. The other
representations and warranties of Commerce One contained in this Agreement shall be true and correct in all respects, in each case as of the date of this Agreement and on and as of the Closing Date
with the same force and effect as though such representations and warranties had been made on and as of the date of this Agreement and the Closing Date (other than representations and warranties made
specifically with reference to a particular date, which, subject to the following proviso shall have been true and correct as of such date), except in each case, or in the aggregate, as does not
constitute a Material Adverse Effect on Commerce One (it being understood that, for purposes of determining the accuracy of such representations and warranties, all "Material Adverse Effect"
qualifications and other qualifications based on the word "material" or similar phrases contained in such representations and warranties shall be disregarded); and SAP AG shall have received a
certificate signed by a duly authorized executive officer of Commerce One confirming the foregoing as of the Closing Date with respect to the representations and warranties made by Commerce One. 

                (b)
Commerce One shall have performed and complied with all of its covenants and agreements contained in this Agreement in all material respects through the Closing; and SAP AG shall
have received a certificate signed by a duly authorized executive officer of Commerce One confirming the foregoing as of the Closing Date. 

                (c)
There shall not exist, and there shall not have been any event, occurrence, change, development or circumstance (other than as previously disclosed in writing by Commerce One to
SAP or disclosed by Commerce One publicly in a filing with the SEC prior to the date of this Agreement), which has had or could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect on Commerce One. 

                (d)
There shall be no injunction, writ, preliminary restraining order or other order in effect of any nature issued by a court or governmental agency of competent jurisdiction
directing that the transactions contemplated by this Agreement or any Related Equity Agreement not be consummated in the manner provided for in this Agreement or a Related Equity Agreement, nor shall
there be pending any proceeding brought by a governmental authority or agency seeking any of foregoing. 

                (e)
The applicable waiting period under the HSR Act and any applicable foreign antitrust or competition laws shall have expired or been terminated. 

                (f)
Commerce One shall have duly executed and delivered to SAP AG the SAP Investor Rights Agreement. 

                (g)
SAP AG shall have received the opinion of independent counsel to Commerce One, dated the date of the Closing Date of the purchase and sale of the Shares, in the form of  Exhibit B hereto.

                (h)
Commerce One shall have amended the Rights Agreement in the manner contemplated by Section 2.14. 

9

 

                (i) The Strategic Alliance Agreement, dated as of September 18, 2000 by and between Commerce One, SAP AG and SAP Markets, Inc., as amended to
date and as may be amended
hereafter, and any successor or replacement agreement, (the "Strategic Alliance Agreement") shall not have expired or been terminated, and there shall not be any uncured material breach by Commerce
One which, if not cured, would result in SAP AG or SAP Markets, Inc. having the right to terminate of the Strategic Alliance Agreement. 

          4.2  Conditions to Commerce One's Obligations.  Commerce One's obligation to sell the Shares, is subject
to the satisfaction, at or prior to the delivery of the Shares, of the following respective conditions (any of which may be waived by Commerce One, in whole or in part): 

                (a)
The representations and warranties of SAP AG contained in this Agreement shall be true and correct in all respects, in each case as of the date of this Agreement and on and as of
the Closing Date with the same force and effect as though such representations and warranties had been made on and as of the date of this Agreement and the Closing Date, (other than representations
and warranties made specifically with reference to a particular date, which, subject to the following provisions, shall have been true and correct as of such date) except in each case, or in the
aggregate, as does not constitute a
Material Adverse Effect on SAP AG (it being understood that, for purposes of determining the accuracy of such representations and warranties, all "Material Adverse Effect" qualifications and other
qualifications based on the word "material" or similar phrases contained in such representations and warranties shall be disregarded); and Commerce One shall have received a certificate signed by a
duly authorized executive officer of SAP AG confirming the foregoing as of the Closing Date. 

                (b)
SAP AG shall have performed and complied with all of its covenants and agreements contained in this Agreement in all material respects through the Closing; and Commerce One shall
have received a certificate signed by a duly authorized executive officer of SAP AG confirming the foregoing as of the Closing Date. 

                (c)
There shall be no injunction, writ, preliminary restraining order or other order in effect of any nature issued by a court or governmental agency of competent jurisdiction
directing that the transactions contemplated in this Agreement or any Related Equity Agreement not be consummated in the manner provided for in this Agreement or a Related Equity Agreement. 

                (d)
SAP AG shall have duly executed and delivered the Standstill Agreement to Commerce One. 

                (e)
The applicable waiting period under the HSR Act and any applicable foreign antitrust or competition laws shall have expired or been terminated. 

                (f)
Commerce One shall have received the opinion of in-house counsel to SAP AG, dated the Closing Date, substantially identical to the opinion given to Commerce One on
behalf of SAP AG by Schilling, Zutt & Anschutz, dated June 16, 2000. 

                (g)
SAP AG is not at such time, or would not be after giving effect to the sale of the Shares, in breach of the provisions of Section 2.1 of the Standstill Agreement. 

                (h)
The Strategic Alliance Agreement shall not have expired or been terminated, and there shall not be any uncured material breach by SAP Markets, Inc. or SAP AG which, if not
cured, would result in Commerce One having the right to terminate of the Strategic Alliance Agreement. 

    5.  Additional Agreements.  

          5.1  Filings and Consents.  Each party hereto will cooperate with each other with respect to obtaining,
as promptly as practicable, and in any event prior to the Closing, all necessary consents, approvals, authorizations and agreements of, and the giving of all notices and making of all other 

10

 

filings with (including, without limitation, filings under the HSR Act or under applicable foreign antitrust or competition laws), any third parties, including Governmental Authorities, necessary to
authorize, approve or permit the transactions contemplated by this Agreement and the Related Equity Agreements. 

          5.2  Covenant to Satisfy Conditions.  Subject to the terms and conditions of this Agreement and
applicable law, each party agrees to use all commercially reasonable efforts to ensure that the conditions to the other party's obligations hereunder set forth in Section 4, insofar as such
matters are within the control of such party, are satisfied as promptly as practicable. 

          5.3  Further Assurances.  Each party shall execute and deliver such additional instruments, documents or
other writings as may be reasonably requested by any other party in order to confirm and carry out and to effectuate fully the intent and purposes of this Agreement. 

          5.4  Adjustment to Number and Type of Securities and Purchase Price.  The type and number of securities
of Commerce One issuable hereunder and the Purchase Price per share of such securities are subject to adjustment as set forth below: 

                (a)
Upon any reclassification, exchange, substitution or other event that results in a change of the number and/or class of the securities issuable hereunder or upon the payment of a
dividend in securities or property other than Common Stock, SAP AG shall be entitled to receive the number and kind of securities and property that SAP AG would have received if SAP AG had made a
purchase hereunder immediately before the record date for such reclassification, exchange, substitution or other event or dividend, subject to further adjustments as provided in this
Section 5.4. The provisions of this Section 5.4(a) shall similarly apply to successive reclassifications, exchanges, substitutions or other events or dividends. 

                (b)
If Commerce One is a party to any transaction (including any consolidation or merger of Commerce One with or into any other corporation, entity or person in which Commerce One
shall not be the continuing or surviving entity, statutory share exchange, sale of all or substantially all of the assets of Commerce One or a recapitalization or reorganization or other transaction)
in each case as a result of which shares of Common Stock are converted into the right, or the holders of Common Stock are otherwise entitled, to receive stock, securities or other property (including
cash or any combination thereof) (any such transaction being hereinafter referred to as a "Recapitalization"), then, in each such case, SAP AG, at any
time after the consummation or effective date of such Recapitalization, shall
receive, in lieu of or in addition to (as the case may be) the Common Stock otherwise issuable hereunder prior to the date of such Recapitalization and the stock and other securities and property
(including cash or any combination thereof) to which SAP AG would have been entitled upon the date of such Recapitalization if SAP AG had purchased shares of Common Stock hereunder immediately prior
thereto. Commerce One shall not be a party to any Recapitalization unless the terms thereof are consistent with the provisions of this Section 5.4 and any successor or acquiring entity has
expressly assumed by written instrument the obligations of Commerce One hereunder. The provisions of this Section 5.4(b) shall similarly apply to successive Recapitalization. 

                (c)
In case of any adjustment in the type of securities issuable hereunder, Commerce One will promptly give written notice thereof to SAP AG in the form of a certificate, certified
and confirmed by an officer of Commerce One, setting forth such adjustment and showing in reasonable detail the facts upon which such adjustment is based. 

                (d)
Commerce One shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of meeting its obligations under this
Agreement, a sufficient number of shares of Common Stock to meet its obligations under this Agreement. If at any time the number of authorized but unissued shares of Common Stock shall not be
sufficient to meet the obligations of Commerce One under this Agreement, in addition to such other 

11

 

remedies as shall be available to SAP AG, Commerce One shall use its reasonable efforts to take such corporate action as may, in the opinion of its legal counsel, be necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes. 

                (e)
If at any time, as a result of an adjustment made pursuant to this Section 5.4, SAP AG shall become entitled hereunder to receive any shares of capital stock of other than
Common Stock, the number of such other shares so receivable shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect
to the shares of Common Stock contained in this Section 5.4 and the provisions of this Agreement shall apply on like terms to any other such shares. 

          5.5  No Impairment of Rights.  Commerce One hereby agrees that it will not, through the amendment of its
Certificate of Incorporation, or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or otherwise, avoid or seek to avoid the observance or
performance of any of the terms of this Agreement, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or
appropriate in order to protect the rights of the holder of the Shares against impairment. Without limiting the generality of the foregoing, Commerce One will (i) take all such action as may be
necessary or appropriate in order that Commerce One may validly and legally issue hereunder fully paid and nonassessable shares of Common Stock, free and clear of any liens, encumbrances and
restrictions, and (ii) use its best efforts to obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction as may be necessary to enable Commerce One to perform its obligations hereunder. 

          5.6  Notification of Certain Matters.  Between the date hereof and the Closing Date, each party hereto
will give prompt notice in writing to the other party of: (i) the occurrence or non-occurrence of any event which will result, or has a reasonable prospect of resulting, in the
failure of any condition, covenant or agreement contained in this Agreement to be complied with or satisfied, (ii) any failure of such party to comply with or satisfy any condition, covenant or
agreement to be complied with or satisfied by it hereunder, and (iii) any notice or other communication from any third party alleging that the consent of such third party is or may be required
in connection with the transactions contemplated by this Agreement or any Related Equity Agreement or that such transactions otherwise may violate the rights of or confer remedies upon such third
party. 

          5.7  Public Announcements.  Except to the extent otherwise required by applicable law or any listing
agreement concerning Commerce One's or SAP AG's publicly traded securities, none of the parties hereto will disclose to any Person, issue any press release or make any public announcements concerning
the transactions contemplated by this Agreement or any Related Equity Agreement or the contents of any thereof without the prior written consent of Commerce One and SAP AG; it being understood and
agreed, however, that Commerce One currently expects to file with the SEC complete unredacted copies of this Agreement and the Related Equity Agreements as exhibits to a Form 8-K.
Commerce One hereby agrees to provide a copy of such Form 8-K (including exhibits) to SAP AG prior to its filing. 

          5.8  Execution of Other Agreements.  Concurrently with the execution of this Agreement, each of Commerce
One, New Commerce One Holding and SAP AG, as applicable, shall execute and deliver the Related Equity Agreements and the amendment to the Strategic Alliance Agreement. 

          5.9  Updated Capital Structure Information.  At the Closing, Commerce One shall deliver to SAP AG
information regarding its capital structure, to the extent and in a similar form as provided in Section 2.4 hereof, as of a date within 10 business days prior to the Closing 

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    6.  Termination  

          6.1  Termination Events.  Without prejudice to other remedies which may be available to the parties by
law or this Agreement, this Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing: 

                (a)
by mutual written consent of Commerce One and SAP AG; 

                (b)
by either Commerce One or SAP AG by giving written notice to the other party if the Closing shall not have occurred prior to September 30, 2001, unless extended by written
agreement of the parties; provided that the party seeking termination pursuant to this subsection (b) is not in default or breach hereunder and  provided, further,
 that the right to terminate this Agreement under this clause (b) shall not be available (i) to any party whose failure
to fulfill any obligation under this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before such date or (ii) in the event that the Closing shall not
have occurred as a result of a failure of any representation to be true and correct and the party seeking termination knew of such breach prior to the date of this Agreement; or 

                (c)
by either Commerce One or SAP AG by giving written notice to the other party if any Governmental Authority shall have issued an injunction or other ruling prohibiting the
consummation of any of the transactions contemplated by this Agreement or any Related Equity Agreement and such injunction or other ruling shall not be subject to appeal or shall have become final and
unappealable. 

          6.2  Effect of Termination.  In the event of any termination of this Agreement pursuant to
Section 6.1, all rights and obligations of the parties hereunder shall terminate without any liability on the part of either party or its respective subsidiaries and affiliates in respect
thereof, except that (a) the obligations of the parties under Section 5.7 and Section 7 (other than Section 7.4) of this Agreement shall remain in full force and effect and
(b) such termination shall not relieve Commerce One or SAP AG of any liability for any breach of this Agreement. 

    7.  Miscellaneous  

          7.1  Interpretation  

                (a)
The various section headings are inserted for purposes of reference only and shall not affect the meaning or interpretation of this Agreement or any provision hereof. The
definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. 

                (b)
Each party hereto acknowledges that it has been represented by competent counsel and participated in the drafting of this Agreement, and agrees that any applicable rule of
construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in connection with the construction or interpretation of this Agreement. 

                (c)
When a reference is made in this Agreement to a Section, Exhibit or Schedule, such reference shall be to a Section of, Exhibit to or Schedule to this Agreement unless otherwise
indicated. 

          7.2  Fees and Expenses.  Each party shall be solely responsible for the payment of the fees and expenses
of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this
Agreement, except to the extent expressly set forth in this Agreement. Without limiting the generality of the foregoing, each of SAP AG and Commerce One shall pay (i) 50% of all fees payable in
connection with the HSR Act filing and (ii) 50% of all stamp and other transfer taxes, if any, which 

13

 

may be payable in respect of the issuance, sale and delivery to SAP AG of Common Stock pursuant to the terms of this Agreement. 

          7.3  Governing Law; Jurisdiction and Venue  

                (a)
This Agreement is to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any choice of law rule that would cause
the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties. 

                (b)
Any legal action or other legal proceeding relating to this Agreement or the enforcement of any provision of this Agreement may be brought or otherwise commenced in any state or
federal court located in the States of California or Delaware. Each party to this Agreement: 

                      (i)
expressly and irrevocably consents and submits to the jurisdiction of each state and federal court located in the States of California or Delaware (and each appellate court
located in the States of California or Delaware in connection with any such legal proceeding, including to enforce any settlement, order or award; 

                      (ii)
agrees that each state and federal court located in the States of California or Delaware shall be deemed to be a convenient forum; and 

                      (iii)
waives and agrees not to assert (by way of motion, as a defense or otherwise), in any such legal proceeding commenced in any state or federal court located in the States of
California or Delaware any claim that such party is not subject personally to the jurisdiction of such court, that such legal proceeding has been brought in an inconvenient forum, that the venue of
such proceeding is improper or that this Agreement or the subject matter hereof or thereof may not be enforced in or by such court. 

                (c)
Each party hereto agrees to the entry of an order to enforce any resolution, settlement, order or award made pursuant to this Section by the state and federal courts located in
the States of California or Delaware and in connection therewith hereby waives, and agrees not to assert by way of motion, as a defense, or otherwise, any claim that such resolution, settlement, order
or award is inconsistent with or violative of the laws or public policy of the laws of the States of California or Delaware or any other jurisdiction. 

                (d)
In the event of any legal action or other legal proceeding relating to this Agreement or the enforcement of any provision of this Agreement, the prevailing party shall be
entitled to payment by the non-prevailing party of all costs and expenses (including reasonable attorneys' fees) incurred by the prevailing party. 

          7.4  Specific Enforcement.  The parties hereto acknowledge and agree that irreparable damage would occur
in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such damage would not be compensable in money
damages and that it would be extremely difficult or impracticable to measure the resultant damages. It is accordingly agreed that any party hereto shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of the Agreement and to enforce specifically the terms and provisions hereof, in addition to any other remedy to which it may be entitled at law or equity, and such
party that is sued for breach of this Agreement expressly waives any defense that a remedy in damages would be adequate and expressly waives any requirement in an action for specific performance for
the posting of a bond by the party bringing such action. 

          7.5  No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and
their respective successors and permitted assigns and are not for the benefit of, nor may any provision hereof or thereof be enforced by, any other Person. 

14

 

          7.6  Entire Agreement.  This Agreement and the Related Equity Agreements and the other documents
delivered pursuant hereto and thereto, constitute the full and entire understanding and agreement between the parties with regard to the subject matter hereof and no party shall be liable or bound to
any other in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein and therein. 

          7.7  Severability.  The provisions of this Agreement shall be severable, and any invalidity,
unenforceability or illegality of any provision or provisions of this Agreement shall not affect any other provision or provisions of this Agreement, and each term and provision of this Agreement
shall be construed to be valid and enforceable to the full extent permitted by law. 

          7.8  Amendment and Waiver  

                (a)
This Agreement may be modified only pursuant to a writing executed by authorized representatives of SAP AG and Commerce One. 

                (b)
No failure to exercise and no delay in exercising any right, power or privilege granted under this Agreement shall operate as a waiver of such right, power or privilege. No
single or partial exercise of any right, power or privilege granted under this Agreement shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies provided in this Agreement are cumulative and are not exclusive of any rights or remedies provided by law. 

          7.9  Assignment and Successors.  SAP AG may transfer or assign its rights and obligations hereunder to
any wholly-owned subsidiary of SAP AG; provided, however, that such rights are transferred in accordance with the terms of the Standstill Agreement, and such transferee executes and delivers a
counterpart copy of this Agreement thereby agreeing to be bound by the terms and provisions set forth herein. Further, the parties agree that, in the event that the reorganization of Commerce One into
a holding company structure is consummated prior to the Closing Date, that New Commerce One Holding (as the publicly-traded holding company of Commerce One) shall without any further action of the
parties automatically assume all of Commerce One's rights and obligations hereunder, and except as the context requires otherwise all references herein to Commerce One shall be deemed to be referenced
to New Commerce One Holding. Except as permitted herein, any assignment of rights or delegation of duties under this Agreement by a party without the prior written consent of the other parties shall
be void ab initio. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 

          7.10  Relationship of the Parties.  For all purposes of this Agreement and the Related Equity
Agreements, each of the parties hereto and their respective Affiliates shall be deemed to be independent entities and, anything in this Agreement to the contrary notwithstanding, nothing herein shall
be deemed to constitute the parties hereto or any of their respective Affiliates as partners, joint venturers, co-owners, an association or any entity separate and apart from each party
itself, nor shall this Agreement make any party hereto an employee or agent, legal or otherwise, of the other parties for any purposes
whatsoever. This Agreement does not create or constitute, and shall not be construed as creating or constituting, a voting trust agreement under the Delaware General Corporation Law or any other
applicable corporation law. None of the parties to this Agreement is authorized to make any statements or representations on behalf of any other party or in any way to obligate any other party, except
as expressly authorized in writing by the other parties. Anything in this Agreement to the contrary notwithstanding, no party hereto or thereto shall assume nor shall be liable for any liabilities or
obligations of the other parties, whether past, present or future. 

          7.11  Notices.  All notices required or permitted hereunder shall be in writing and shall be given, and
deemed effectively given, if given in accordance with the applicable section of the Strategic Alliance Agreement. 

15

 

          7.12  Facsimile; Counterparts.  This Agreement may be executed by facsimile and in any number of
counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 

          7.13  Survival of Representations and Warranties.  The representations and warranties of the parties
contained in this Agreement shall survive until the date which is one (1) year following the Closing Date; provided, however, that the
representations and warranties set forth in Sections 2.2, 2.4(b), 2.13 and 2.14 shall continue in perpetuity. 

[The
remainder of this page is intentionally left blank] 

16

    IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth in the first paragraph hereof. 

	 	 	COMMERCE ONE, INC.
	

 	
 	

By:	

/s/ PETER F. PERVERE   
	 	 	 	
 Name: Peter F. Pervere

Title: Senior Vice President and Chief Financial Officer
	

 	
 	
NEW COMMERCE ONE HOLDING, INC.
	

 	
 	
By:	

/s/ PETER F. PERVERE   
	 	 	 	
 Name: Peter F. Pervere

Title: Senior Vice President and Chief Financial Officer
	

 	
 	
SAP AG
	

 	
 	
By:	

/s/ WERNER BRANDT   
	 	 	 	
 Name: Werner Brandt

Title:
	

 	
 	

By:	

/s/ MICHAEL JUNGE   
	 	 	 	
 Name: Michael Junge

Title: General Counsel

[Signature
page to Share Purchase Agreement] 

  

 
 

EXHIBIT A    
    
    CERTAIN DEFINITIONS    
  

    For purposes of the Agreement (including this Exhibit A): 

    "Business Day" shall mean any day other than a Saturday or Sunday or other day on which commercial banks in California are authorized
or required by law to close. 

    "Common Stock" shall mean the common stock, par value $0.0001 per share, of Commerce One, Inc., a Delaware corporation and the
associated stock purchase rights. 

    "DGCL" shall mean the Delaware General Corporation Law. 

    "Dollars" or "$" shall mean United States dollars. 

    "Entity" shall mean any corporation (including any non profit corporation), general partnership, limited partnership, limited liability
partnership, joint venture, estate, trust, cooperative, foundation, society, political party, union, company (including any limited liability company or joint stock company), firm or other enterprise,
association, organization or entity. 

    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

    "Governmental Authority" means any nation or government, any state or other political subdivision thereof or court, arbitral or other
tribunal and any Entity properly exercising executive, legislative, judicial, regulatory or administrative functions of government. 

    "HSR Act" shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 

    "Lien" shall mean any charge, equitable interest, lien, encumbrance, claim, option, proxy by way of security, pledge, security
interest, mortgage, right of first refusal, right of preemption, transfer or retention of title agreement, or restriction by way of security of any kind or nature, including any restriction on use,
voting, transfer, receipt of income or exercise of any other attribute of ownership. 

    "Material Adverse Effect" shall mean, with respect to Commerce One or SAP AG, any change event or effect that is materially adverse to
(a) the business, assets, financial condition, operations or results of operations of such company and its subsidiaries taken as a whole; or (b) the ability of such company to consummate
the transactions contemplated by this Agreement or the Related Equity Agreements or perform its obligations with respect thereto; provided, however,
that in no event shall a decline in the market price of an entity's publicly traded securities, in and of itself, constitute a Material Adverse Effect. 

    "Person" shall mean any individual, Entity or Governmental Authority. 

    "Preferred Stock" shall mean the preferred stock, par value $0.0001 per share, of Commerce One, Inc., a Delaware corporation. 

    "Purchase Price" shall have the meaning specified in Section 1 of the Agreement. 

    "Related Equity Agreements" shall mean the Standstill Agreement and the SAP Investor Rights Agreement. 

    "Requirements of Law" shall mean, as to any Person, the certificate of incorporation and bylaws or other organizational or governing
documents of such Person, and all federal, state, local and foreign laws, rules and regulations, including, without limitation, securities, antitrust, communications, licensing, health, safety, labor
and trade laws, rules and regulations, and all orders, judgments, decrees and other determinations of any Governmental Authority or arbitrator, applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject. 

A–1

 

    "SAP Investor Rights Agreement" shall mean the SAP Investor Rights Agreement to be entered into concurrently herewith in the form
attached hereto as Exhibit D. 

    "Securities Act" shall mean the Securities Act of 1933, as amended. 

    "SEC" shall mean the U.S. Securities and Exchange Commission. 

    "Standstill Agreement" shall mean the Amended and Standstill and Stock Restriction Agreement to be entered into concurrently herewith
by and between Commerce One and SAP AG, in the form attached hereto as Exhibit E. 

A–2

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SHARE PURCHASE AGREEMENT

EXHIBIT A CERTAIN DEFINITIONS

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