Document:

Exhibit 4.2

                                                                EXECUTION COPY

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

                     AMENDED AND RESTATED TRUST AGREEMENT

                                    between

                            REGIONS ACCEPTANCE LLC,
                                 as Depositor

                                      and

               WACHOVIA BANK OF DELAWARE, NATIONAL ASSOCIATION,
                               as Owner Trustee

                         Dated as of November 15, 2002

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

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                                                 TABLE OF CONTENTS

                                                     ARTICLE I
                                                    DEFINITIONS

<S>           <C>                                                                                                      <C>
Section 1.01.  Capitalized Terms..................................................................................1
Section 1.02.  Other Definitional Provisions......................................................................3

                                                     ARTICLE II
                                                    ORGANIZATION

Section 2.01.  Name...............................................................................................4
Section 2.02.  Office.............................................................................................4
Section 2.03.  Purposes and Powers................................................................................4
Section 2.04.  Appointment of Owner Trustee.......................................................................5
Section 2.05.  Initial Capital Contribution of Trust Estate.......................................................5
Section 2.06.  Declaration of Trust...............................................................................5
Section 2.07.  [Reserved].........................................................................................6
Section 2.08.  Title to Trust Property............................................................................6
Section 2.09.  Situs of Trust.....................................................................................6
Section 2.10.  Representations, Warranties and Covenants of the Depositor.........................................6
Section 2.11.  Federal Income Tax Allocations.....................................................................7

                                                    ARTICLE III
                                    TRUST CERTIFICATES AND TRANSFER OF INTERESTS

Section 3.01.  Initial Ownership..................................................................................8
Section 3.02.  The Trust Certificates.............................................................................8
Section 3.03.  Execution, Authentication and Delivery of Trust Certificates.......................................8
Section 3.04.  Registration of Transfer and Exchange of Trust Certificates........................................8
Section 3.05.  Mutilated, Destroyed, Lost or Stolen Trust Certificates...........................................10
Section 3.06.  Persons Deemed Owners.............................................................................11
Section 3.07.  Access to List of Certificateholders' Names and Addresses.........................................11
Section 3.08.  Maintenance of Office or Agency...................................................................11
Section 3.09.  Appointment of Paying Agent.......................................................................11
Section 3.10.  Definitive Trust Certificates.....................................................................12

                                                     ARTICLE IV
                                              ACTIONS BY OWNER TRUSTEE

Section 4.01.  Prior Notice with Respect to Certain Matters......................................................12
Section 4.02.  Action by Certificateholders with Respect to Certain Matters......................................14
Section 4.03.  Restrictions on Certificateholders' Power.........................................................15
Section 4.04.  Majority Control..................................................................................15

                                                     ARTICLE V
                                     APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

Section 5.01.  Establishment of Trust Account....................................................................15
Section 5.02.  Application of Trust Funds........................................................................15
Section 5.03.  Method of Payment.................................................................................16
Section 5.04.  [Reserved]........................................................................................16

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Section 5.05.  Accounting and Reports to Certificateholders, the Internal Revenue Service and Others.............16
Section 5.06.  Signature on Returns; Tax Matters Partner.........................................................17

                                                     ARTICLE VI
                                       AUTHORITY AND DUTIES OF OWNER TRUSTEE

Section 6.01.  General Authority.................................................................................17
Section 6.02.  General Duties....................................................................................17
Section 6.03.  Action upon Instruction...........................................................................17
Section 6.04.  No Duties Except as Specified in this Agreement or in Instructions................................18
Section 6.05.  No Action Except Under Specified Documents or Instructions........................................19
Section 6.06.  Restrictions......................................................................................19

                                                    ARTICLE VII
                                            CONCERNING THE OWNER TRUSTEE

Section 7.01.  Acceptance of Trusts and Duties...................................................................19
Section 7.02.  Furnishing of Documents...........................................................................20
Section 7.03.  Representations and Warranties....................................................................21
Section 7.04.  Reliance; Advice of Counsel.......................................................................21
Section 7.05.  Not Acting in Individual Capacity.................................................................22
Section 7.06.  Owner Trustee Not Liable for Trust Certificates or for Receivables................................22
Section 7.07.  Owner Trustee May Own Trust Certificates and Notes................................................22
Section 7.08.  Doing Business in Other Jurisdictions.............................................................22
Section 7.09.  Paying Agent; Authenticating Agent................................................................23

                                                    ARTICLE VIII
                                           COMPENSATION OF OWNER TRUSTEE

Section 8.01.  Owner Trustee's Fees and Expenses.................................................................23
Section 8.02.  Indemnification...................................................................................23
Section 8.03.  Payments to the Owner Trustee.....................................................................24

                                                     ARTICLE IX
                                           TERMINATION OF TRUST AGREEMENT

Section 9.01.  Termination of Trust Agreement....................................................................24

                                                     ARTICLE X
                               SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

Section 10.01.  Eligibility Requirements for Owner Trustee.......................................................25
Section 10.02.  Resignation or Removal of Owner Trustee..........................................................25
Section 10.03.  Successor Owner Trustee..........................................................................26
Section 10.04.  Merger or Consolidation of Owner Trustee.........................................................27
Section 10.05.  Appointment of Co-Trustee or Separate Trustee....................................................27

                                                     ARTICLE XI
                                                   MISCELLANEOUS

Section 11.01.  Supplements and Amendments.......................................................................28
Section 11.02.  No Legal Title to Trust Estate in Certificateholders.............................................29

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Section 11.03.  Limitations on Rights of Others..................................................................29
Section 11.04.  Notices..........................................................................................29
Section 11.05.  Severability.....................................................................................30
Section 11.06.  Separate Counterparts............................................................................30
Section 11.07.  Successors and Assigns...........................................................................30
Section 11.08.  Covenants of the Depositor.......................................................................30
Section 11.09.  No Petition......................................................................................30
Section 11.10.  No Recourse......................................................................................30
Section 11.11.  Headings.........................................................................................31
Section 11.12.  GOVERNING LAW....................................................................................31
Section 11.13.  Trust Certificate Transfer Restrictions..........................................................31
Section 11.14.  Acceptance of Terms of Agreement.................................................................31

Exhibit A       Form of Trust Certificate.......................................................................A-1
Exhibit B       Form of Transfer Certificate....................................................................B-1
Exhibit C       Form of Investment Letter.......................................................................C-1

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     This AMENDED AND RESTATED TRUST AGREEMENT, dated as of November 15, 2002,
is between REGIONS ACCEPTANCE LLC, a Delaware limited liability company, as
depositor (the "Depositor"), and WACHOVIA BANK OF DELAWARE, NATIONAL
ASSOCIATION, a national banking association, as owner trustee (the "Owner
Trustee").

     WHEREAS, the Owner Trustee and the Depositor entered into a Trust
Agreement dated as of November 8, 2002 (the "Original Trust Agreement"); and

     WHEREAS, the Original Trust Agreement is being amended and restated as of
November 15, 2002;

     NOW, THEREFORE, the Depositor and the Owner Trustee hereby agree that the
Original Trust Agreement shall be amended and restated as follows:

                                  ARTICLE I

                                  DEFINITIONS

     Section 1.01. Capitalized Terms. For all purposes of this Agreement, the
following terms shall have the meanings set forth below:

     "Administration Agreement" shall mean the Owner Trust Administration
Agreement dated as of November 15, 2002, among Wachovia Bank of Delaware,
National Association, as Owner Trustee of the Trust, Regions Bank, as Owner
Trust Administrator, and The Bank of New York, as Indenture Trustee, as the
same may be amended, supplemented or otherwise modified from time to time.

     "Agreement" shall mean this Amended and Restated Trust Agreement, as the
same may be amended, supplemented or otherwise modified from time to time.

     "Bankruptcy Action" shall have the meaning assigned to such term in
Section 4.01.

     "Benefit Plan" shall have the meaning assigned to such term in Section
11.13.

     "Certificate Distribution Account" shall have the meaning assigned to
such term in Section 5.01.

     "Certificate Register" and "Certificate Registrar" shall mean the
register mentioned in and the registrar appointed pursuant to Section 3.04.

     "Class A-1 Notes" shall mean the 1.435% Asset Backed Notes, Class A-1,
issued pursuant to the Indenture.

     "Class A-2 Notes" shall mean the 1.94% Asset Backed Notes, Class A-2,
issued pursuant to the Indenture.

     "Class A-3 Notes" shall mean the 2.63% Asset Backed Notes, Class A-3,
issued pursuant to the Indenture.

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     "Class A-4 Notes" shall mean the 3.26% Asset Backed Notes, Class A-4,
issued pursuant to the Indenture.

     "Class B Notes" shall mean the 3.24% Asset Backed Notes, Class B, issued
pursuant to the Indenture.

     "Class C Notes" shall mean the 4.81% Asset Backed Notes, Class C, issued
pursuant to the Indenture.

     "Code" shall mean the Internal Revenue Code of 1986, as amended, and the
Treasury Regulations promulgated thereunder.

     "Corporate Trust Office" shall mean, with respect to the Owner Trustee,
the principal corporate trust office of the Owner Trustee located at One
Rodney Square, 920 King Street, Wilmington, Delaware 19801, Attention:
Corporate Trust Administration, or at such other address in the State of
Delaware as the Owner Trustee may designate by notice to the
Certificateholders and the Depositor, or the principal corporate trust office
of any successor Owner Trustee at the address (which shall be in the State of
Delaware) designated by such successor Owner Trustee by notice to the
Certificateholders and the Depositor.

     "Depositor" shall mean Regions Acceptance LLC, and its successors, in its
capacity as depositor hereunder.

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

     "Expenses" shall have the meaning assigned to such term in Section 8.02.

     "Indemnified Parties" shall have the meaning assigned to such term in
Section 8.02.

     "Indenture" shall mean the Indenture, dated as of November 15, 2002
between Wachovia Bank of Delaware, National Association, as Owner Trustee of
the Trust and The Bank of New York, as Indenture Trustee, as amended,
supplemented or otherwise modified from time to time.

     "Investment Letter" shall have the meaning assigned to such term in
Section 3.04.

     "Notes" shall mean the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes.

     "Original Trust Agreement" has the meaning set forth in the recitals.

     "Owner Trustee" shall mean Wachovia Bank of Delaware, National
Association, a national banking association, not in its individual capacity
but solely as owner trustee under this Agreement, and any successor Owner
Trustee hereunder.

     "Paying Agent" shall mean any paying agent or co-paying agent appointed
pursuant to Section 3.09 and shall initially be The Bank of New York.

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     "Percentage Interest" means, as to any Certificate, the percentage
interest, specified on the face thereof, in the distributions on the
Certificates pursuant to this Agreement.

     "Person" shall mean any individual, corporation, estate, partnership,
limited liability company, joint venture, association, joint stock company,
trust or business trust (including any beneficiary thereof), unincorporated
organization or government or any agency or political subdivision thereof.

     "Record Date" shall mean, with respect to any Payment Date, the last day
of the month preceding such Payment Date.

     "Regions Bank" means Regions Bank, an Alabama state banking corporation,
and its successors.

     "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement dated as of November 15, 2002, among the Wachovia Bank of Delaware,
National Association, as Owner Trustee of the Trust, as issuer, the Depositor,
Regions Bank, as seller, master servicer, custodian and administrator, and The
Bank of New York, as indenture trustee, as the same may be amended,
supplemented or otherwise modified from time to time.

     "Treasury Regulations" shall mean regulations, including proposed or
temporary Regulations, promulgated under the Code. References herein to
specific provisions of proposed or temporary regulations shall include
analogous provisions of final Treasury Regulations or other successor Treasury
Regulations.

     "Trust" shall mean Regions Auto Receivables Trust 2002-1 formed by the
Original Trust Agreement.

     "Trust Certificate" shall mean a certificate evidencing the beneficial
interest of a Certificateholder in the Trust, substantially in the form
attached hereto as Exhibit A.

     "Trust Estate" shall mean all right, title and interest of the Trust in
and to the property and rights assigned to the Trust pursuant to Article II of
the Sale and Servicing Agreement, all funds on deposit from time to time in
the Trust Accounts and the Certificate Distribution Account, and all other
property of the Trust from time to time, including any rights of the Owner
Trustee and the Trust pursuant to the Sale and Servicing Agreement and the
Administration Agreement.

     Section 1.02. Other Definitional Provisions.

          (a) Capitalized terms used and not otherwise defined herein have the
meanings assigned to them in the Sale and Servicing Agreement or, if not
defined therein, in the Indenture.

          (b) All terms defined in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.

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          (c) As used in this Agreement and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Agreement or in any such certificate or other document, and
accounting terms partly defined in this Agreement or in any such certificate
or other document to the extent not defined, shall have the respective
meanings given to them under generally accepted accounting principles. To the
extent that the definitions of accounting terms in this Agreement or in any
such certificate or other document are inconsistent with the meanings of such
terms under generally accepted accounting principles, the definitions
contained in this Agreement or in any such certificate or other document shall
control.

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

          (e) The definitions contained in this Agreement are applicable to
the singular and plural forms of such terms and to the masculine, feminine and
neuter genders of such terms.

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

                                  ARTICLE II

                                 ORGANIZATION

     Section 2.01. Name. The Trust heretofore created and continued hereby is
known as "Regions Auto Receivables Trust 2002-1," 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.

     Section 2.02. 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 Depositor.

     Section 2.03. Purposes and Powers. The purpose of the Trust is to engage
in the following activities and the Owner Trustee acting on behalf of the
Trust shall have the power and authority:

               (a) to issue the Notes pursuant to the Indenture and the Trust
     Certificates pursuant to this Agreement and to sell the Notes and the
     Trust Certificates, in each case in accordance with the Basic Documents;

               (b) with the proceeds of the sale of the Notes and the Trust
     Certificates, to purchase the Receivables, to fund the Reserve Account,
     to pay the

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     organizational, start-up and transactional expenses of the Trust and to
     pay the balance of such proceeds to the Depositor pursuant to the Sale
     and Servicing Agreement;

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

               (d) to enter into and perform its obligations under the Basic
     Documents to which it is to be a party (including, but not limited to,
     the Administration Agreement and the power of attorney contemplated
     thereby);

               (e) 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; and

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

     The Owner Trustee acting on behalf of the Trust is hereby authorized to
engage in the foregoing activities. The Owner Trustee 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 2.04. Appointment of Owner Trustee. The Depositor 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 2.05. Initial Capital Contribution of Trust Estate. The Depositor
hereby sells, assigns, transfers, conveys and sets over to the Owner Trustee,
as of the date hereof, the sum of $1. The Owner Trustee hereby acknowledges
receipt in trust from the Depositor, as of the date hereof, of the foregoing
contribution, which shall constitute the initial Trust Estate and shall be
deposited in the Certificate Distribution Account. The Depositor shall pay
organizational expenses of 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. No certificateholder shall have any
personal liability for any liability or obligation of the Trust or the Owner
Trustee.

     Section 2.06. Declaration of Trust. The Owner Trustee hereby declares
that it will hold the Trust Estate in trust upon and subject to the conditions
set forth herein for the use and benefit of the Certificateholders, subject to
the obligations of the Trust under the Basic Documents. It is the intention of
the parties hereto that the Trust constitute a common law trust under the law
of the State of Delaware and that this Agreement constitute the governing
instrument of such trust. It is the intention of the parties hereto that,
solely for income and franchise tax purposes, until the Trust Certificates are
held by a Person other than the Depositor, the Trust shall be disregarded as
an entity separate from the Depositor and the Notes will be characterized as
debt. At such time

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that the Trust Certificates are held by more than one Person, it is the
intention of the parties hereto that, solely for income and franchise tax
purposes, the Trust shall be treated as a partnership, with the assets of the
partnership being the Receivables and other assets held by the Trust, the
partners of the partnership being the Certificateholders, and the Notes being
debt of the partnership. The Depositor and the Certificateholders by
acceptance of a Trust Certificate agree to such treatment and agree to take no
action inconsistent with such treatment. The parties agree that, unless
otherwise required by appropriate tax authorities, the Trust will not file or
cause to be filed annual or other returns, reports and other forms consistent
with the characterization of the Trust as an entity separate from its owner
unless and until the Trust Certificates are held by more than one Person.

     Section 2.07. [Reserved].

     Section 2.08. Title to Trust Property. Legal title to all the Trust
Estate shall be vested at all times in the Owner Trustee on behalf of the
Trust (subject to the Lien created by the Indenture).

     Section 2.09. Situs of Trust. The Trust will be located in the State of
Delaware and administered in the State of Delaware or the State of Alabama.
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; provided, however, that nothing herein shall restrict
or prohibit the Owner Trustee from having employees within or without the
State of Delaware. Payments will 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 will be at the Corporate Trust Office in
the State of Delaware.

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

               (a) The Depositor is duly organized and validly existing as a
     limited liability company 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 currently owned and such business is
     presently conducted.

               (b) The Depositor is duly qualified to do business as a foreign
     limited liability company in good standing and has obtained all necessary
     licenses and approvals in all jurisdictions in which the ownership or
     lease of its property or the conduct of its business shall require such
     qualifications.

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

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               (d) The Depositor has duly executed and delivered this
     Agreement, and this Agreement constitutes a legal, valid and binding
     obligation of the Depositor, enforceable against the Depositor, in
     accordance with its terms.

               (e) The consummation of the transactions contemplated by this
     Agreement and the fulfillment of the terms hereof 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 limited
     liability company agreement or certificate of formation of the Depositor,
     or any indenture, agreement or other instrument to which the Depositor is
     a party or by which it is bound; nor 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); nor violate any law or, to the best of the Depositor's
     knowledge, any order, rule or regulation applicable to the Depositor of
     any court or of any federal or state regulatory body, administrative
     agency or other governmental instrumentality having jurisdiction over the
     Depositor or its properties.

               (f) There are no proceedings or investigations pending or
     threatened before any court, regulatory body, administrative agency or
     other governmental instrumentality having jurisdiction over the Depositor
     or its properties (i) asserting the invalidity of this Agreement, (ii)
     seeking to prevent the consummation of any of the transactions
     contemplated by this Agreement or (iii) seeking any determination or
     ruling that might materially and adversely affect the performance by the
     Depositor of its obligations under, or the validity or enforceability of,
     this Agreement.

               (g) The representations and warranties of the Depositor in
     Section 3.02 of the Sale and Servicing Agreement are true and correct.

     Section 2.11. Federal Income Tax Allocations. If there is more than one
beneficial owner of the Trust Certificates, net income of the Trust for any
month as determined for federal income tax purposes (and each item of income,
gain, loss and deduction entering into the computation thereof) shall be
allocated among the Certificateholders as of the first day following the
Record Date, in proportion to their percentage ownership interest of Trust
Certificates on the Record Date.

     If there is more than one beneficial owner of the Trust Certificates, net
losses of the Trust, if any, for any month as determined for federal income
tax purposes (and each item of income, gain, loss and deduction entering into
the computation thereof) shall be allocated among the Certificateholders as of
the first day following the Record Date, in proportion to their percentage
ownership interest of Trust Certificates on the Record Date. If there is more
than one beneficial owner of the Trust Certificates, the Trust is authorized
to modify the allocations in this paragraph if necessary or appropriate, in
its sole discretion, for the allocations to fairly reflect the economic
income, gain or loss to the Certificateholders, or as otherwise required by
the Code.

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                                 ARTICLE III

                 TRUST CERTIFICATES AND TRANSFER OF INTERESTS

     Section 3.01. Initial Ownership. Upon the formation of the Trust by the
execution of the Original Trust Agreement and until the issuance of the Trust
Certificates, the Depositor shall be the sole beneficial owner of the Trust.

     Section 3.02. The Trust Certificates. The Trust Certificates shall be
issued in minimum denominations of a one percent (1%) Percentage Interest in
the Trust. The Trust Certificates shall be executed by manual or facsimile
signature of an authorized officer of the Owner Trustee. Trust 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 Owner Trustee, shall be validly issued and entitled to the
benefit of this Agreement and shall be valid and binding obligations of the
Owner Trustee, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and delivery of such
Trust Certificates or did not hold such offices at the date of authentication
and delivery of such Trust Certificates.

     A transferee of a Trust Certificate, if any, shall become a
Certificateholder, shall become bound by this Agreement and shall be entitled
to the rights and subject to the obligations of a Certificateholder hereunder
upon such transferee's acceptance of a Trust Certificate duly registered in
such transferee's name pursuant to Section 3.04.

     Section 3.03. Execution, Authentication and Delivery of Trust
Certificates. On the Closing Date, the Owner Trustee shall cause the Trust
Certificates in an aggregate Percentage Interest equal to 100% to be executed
and authenticated by the Owner Trustee and delivered to or upon the written
order of the Depositor, without further action by the Depositor, in authorized
denominations. No Trust Certificate shall entitle its Holder to any benefit
under this Agreement or be valid for any purpose unless there shall appear on
such Trust Certificate a certificate of authentication substantially in the
form set forth in Exhibit A, executed by the Owner Trustee or The Bank of New
York, as the Owner Trustee's authenticating agent, by manual signature; such
authentication shall constitute conclusive evidence that such Trust
Certificate shall have been duly authenticated and delivered hereunder. All
Trust Certificates shall be dated the date of their authentication.

     When a Trust Certificate is duly executed and issued by the Owner Trustee
and duly authenticated in accordance with this Agreement, the Trust
Certificate will be fully paid, validly issued, nonassessable and entitled to
the benefits of this Agreement.

     Section 3.04. Registration of Transfer and Exchange of Trust
Certificates. The Certificate Registrar shall keep or cause to be kept, at the
office or agency maintained pursuant to Section 3.08, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Owner Trustee shall provide for the registration of Trust Certificates and of
transfers and exchanges of Trust Certificates as herein provided. The Owner
Trustee hereby appoints The Bank of New York to act as Certificate Registrar,
and The Bank of New York hereby accepts such appointment.

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     The Trust Certificates have not been and will not be registered under the
Securities Act and will not be listed on any exchange. No transfer of a Trust
Certificate shall be made unless such transfer is made pursuant to an
effective registration statement under the Securities Act and any applicable
state securities laws or is exempt from the registration requirements under
said Act and such state securities laws. In the event that a transfer is to be
made in reliance upon an exemption from the Securities Act and state
securities laws, in order to assure compliance with the Securities Act and
such laws, the Holder desiring to effect such transfer and such Holder's
prospective transferee shall each certify to the Owner Trustee or the
Certificate Registrar and the Depositor in writing the facts surrounding the
transfer in substantially the forms set forth in Exhibit B and Exhibit C (the
"Investment Letter"). Except in the case of a transfer as to which the
proposed transferee has provided an Investment Letter with respect to a Rule
144A transaction, there shall also be delivered to the Owner Trustee or the
Certificate Registrar and the Depositor an Opinion of Counsel that such
transfer may be made pursuant to an exemption from the Securities Act and
state securities laws, which Opinion of Counsel shall not be an expense of the
Trust, the Owner Trustee, the Certificate Registrar or the Indenture Trustee
(unless it is the transferee from whom such opinion is to be obtained) or of
the Depositor or the Seller; provided, that such Opinion of Counsel in respect
of the applicable state securities laws may be a memorandum of law rather than
an opinion if such counsel is not licensed in the applicable jurisdiction.
Upon request, the Owner Trustee shall provide to any Holder of a Trust
Certificate and any prospective transferee designated by any such Holder
information regarding the Trust Certificates and the Receivables and such
other information which is in the possession of the Owner Trustee or which can
be obtained by the Owner Trustee without undue burden or expense in order to
satisfy the condition to eligibility set forth in Rule 144A(d)(4) for transfer
of any such Trust Certificate without registration thereof under the
Securities Act pursuant to the registration exemption provided by Rule 144A.
Each Holder of a Trust Certificate desiring to effect such a transfer shall,
and does hereby agree to, indemnify the Trust, the Owner Trustee, the
Indenture Trustee and the Depositor against any liability that may result if
the transfer is not so exempt or is not made in accordance with federal and
state securities laws.

     No transfer of a Trust Certificate shall be made to any Person unless the
Owner Trustee or the Certificate Registrar and the Depositor have received (a)
a certificate in the form of paragraph three (3) to the Investment Letter
attached hereto as Exhibit C from such Person to the effect that such Person
is not a Benefit Plan, or (b) an Opinion of Counsel satisfactory to the Owner
Trustee and the Depositor to the effect that the purchase and holding of such
Trust Certificate will not constitute or result in the assets of the Trust
being deemed to be "plan assets" subject to the prohibited transactions
provisions of ERISA or Section 4975 of the Code and will not subject the Owner
Trustee, the Indenture Trustee or the Depositor to any obligation in addition
to those undertaken in the Basic Documents; provided, however, that the Owner
Trustee will not require such certificate or opinion in the event that, as a
result of a change of law or otherwise, counsel satisfactory to the Owner
Trustee has rendered an Opinion of Counsel to the effect that the purchase and
holding of a Trust Certificate by a Benefit Plan or a Person that is
purchasing or holding such a Trust Certificate with the assets of a Benefit
Plan will not constitute or result in a prohibited transaction under ERISA or
Section 4975 of the Code.

     Upon surrender for registration of transfer of any Trust Certificate at
the office or agency maintained pursuant to Section 3.08, the Owner Trustee
shall execute, authenticate and deliver (or shall cause The Bank of New York
as its authenticating agent to authenticate and deliver), in

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<PAGE>

the name of the designated transferee or transferees, one or more new Trust
Certificates in authorized denominations of a like aggregate amount dated the
date of authentication by the Owner Trustee or any authenticating agent. At
the option of a Certificateholder, Trust Certificates may be exchanged for
other Trust Certificates of authorized denominations of a like aggregate
amount upon surrender of the Trust Certificates to be exchanged at the office
or agency maintained pursuant to Section 3.08.

     Every Trust 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 related Certificateholder or such Certificateholder's attorney
duly authorized in writing. Each Trust Certificate surrendered for
registration of transfer or exchange shall be cancelled and subsequently
disposed of by the Owner Trustee in accordance with its customary practice.

     No service charge shall be made for any registration of transfer or
exchange of Trust Certificates, but 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 in connection with any transfer or
exchange of Trust Certificates.

     The preceding provisions of this Section notwithstanding, the Owner
Trustee shall not make, and the Certificate Registrar shall not register
transfers or exchanges of, Trust Certificates for a period of 15 days
preceding the due date for any payment with respect to the Trust Certificates.

     Notwithstanding anything contained herein to the contrary, the Owner
Trustee shall not be responsible for ascertaining whether any transfer
complies with the registration provisions or exemptions from the Securities
Act, the Securities Act of 1934, as amended, applicable state securities law
or the Investment Company Act of 1940, as amended; provided, however, that if
a certificate or opinion is specifically required to be delivered to the Owner
Trustee by a purchaser or transferee of a Trust Certificate, the Owner Trustee
shall be under a duty to examine the same to determine whether it conforms to
the requirements of this Trust Agreement and shall promptly notify the party
delivering the same if such certificate or opinion does not so conform.

     Section 3.05. Mutilated, Destroyed, Lost or Stolen Trust Certificates. If
(a) any mutilated Trust Certificate shall be surrendered to the Certificate
Registrar, or if the Certificate Registrar shall receive evidence to its
satisfaction of the destruction, loss or theft of any Trust Certificate and
(b) there shall be delivered to the Certificate Registrar and the Owner
Trustee such security or indemnity as may be required by them to save each of
them harmless, then in the absence of written notice that such Trust
Certificate has been acquired by a protected purchaser, the Owner Trustee
shall execute and the Owner Trustee or The Bank of New York, as the Owner
Trustee's authenticating agent, shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Trust
Certificate, a new Trust Certificate of like tenor and denomination. In
connection with the issuance of any new Trust Certificate under this Section,
the Owner Trustee or the Certificate Registrar may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith. Any duplicate Trust Certificate issued
pursuant to this Section shall constitute

                                      10

<PAGE>

conclusive evidence of ownership in the Trust, as if originally issued,
whether or not the lost, stolen or destroyed Trust Certificate shall be found
at any time.

     Section 3.06. Persons Deemed Owners. Prior to due presentation of a Trust
Certificate for registration of transfer, the Owner Trustee, the Certificate
Registrar or any Paying Agent may treat the Person in whose name any Trust
Certificate is registered in the Certificate Register as the owner of such
Trust Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes whatsoever, and none of the Owner
Trustee, the Certificate Registrar or any Paying Agent shall be bound by any
notice to the contrary.

     Section 3.07. Access to List of Certificateholders' Names and Addresses.
The Owner Trustee shall furnish or cause to be furnished to the Master
Servicer, the Paying Agent and the Depositor, within 15 days after receipt by
the Owner Trustee of a written request therefor from the Master Servicer, the
Paying Agent or the Depositor, a list, in such form as the Master Servicer or
the Depositor may reasonably require, of the names and addresses of the
Certificateholders as of the most recent Record Date. The Certificate
Registrar shall also furnish to the Owner Trustee and the Paying Agent a copy
of such list at any time there is a change therein. If (i) three or more
Certificateholders or (ii) one or more Holders of Trust Certificates
evidencing not less than 25% of the Percentage Interests in the Trust
Certificates apply in writing to the Owner Trustee, and such application
states that the applicants desire to communicate with other Certificateholders
with respect to their rights under this Agreement or under the Trust
Certificates and such application is accompanied by a copy of the
communication that such applicants propose to transmit, then the Owner Trustee
shall, within five Business Days after the receipt of such application, afford
such applicants access during normal business hours to the current list of
Certificateholders. Each Certificateholder, by receiving and holding a Trust
Certificate, shall be deemed to have agreed not to hold any of the Depositor,
the Certificate Registrar 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. The Certificate Registrar shall upon the request of
the Owner Trustee provide such list, or access to such list, of
Certificateholders as contemplated by this Section 3.07.

     Section 3.08. Maintenance of Office or Agency. The Owner Trustee shall
designate in the Borough of Manhattan, the City of New York, an office or
offices or agency or agencies where Trust 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 Trust Certificates and the Basic Documents
may be served. The Owner Trustee initially designates The Bank of New York as
the office for such purposes and The Bank of New York hereby accepts such
designation. The Owner Trustee shall give prompt written notice to the
Depositor and the Certificateholders of any change in the location of the
Certificate Register or any such office or agency.

     Section 3.09. Appointment of Paying Agent. The Paying Agent shall make
distributions to Certificateholders from the Certificate Distribution Account
pursuant to Section 5.02 and shall report the amounts of such distributions to
the Owner Trustee. 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 Paying Agent shall have failed to perform its
obligations under

                                      11

<PAGE>

this Agreement in any material respect. The Owner Trustee hereby appoints The
Bank of New York to act as Paying Agent, and The Bank of New York hereby
accepts such appointment. As Paying Agent, The Bank of New York hereby agrees
to hold all sums, if any, held by it for payment to the Certificateholders in
trust for the benefit of the Certificateholders entitled thereto until such
sums shall be paid to such Certificateholders. The Bank of New York shall be
permitted to resign as Paying Agent upon 30 days' written notice to the Owner
Trustee. In the event that The Bank of New York shall no longer be the Paying
Agent, the Depositor, with the consent of 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 hereunder 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 will hold all sums, if any, held by it
for payment to the Certificateholders in trust for the benefit of the
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 7.01, 7.03, 7.04, 8.01 and 8.02 shall apply to The Bank of New York
in its role of Paying Agent and Certificate Registrar, for so long as The Bank
of New York shall act as Paying Agent and Certificate Registrar, to the Owner
Trustee, if the Owner Trustee is appointed to act 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 appointed hereunder. Any reference in this Agreement
to the Paying Agent shall include any co-paying agent unless the context
requires otherwise.

     Section 3.10. Definitive Trust Certificates. The Trust Certificates, upon
original issuance, will be issued in the form of a typewritten Trust
Certificate or Trust Certificates in the form attached hereto as Exhibit A to
be delivered to the Certificateholders as directed by the Depositor, by, or on
behalf of, the Trust. Such Trust Certificate or Trust Certificates shall be
registered on the Certificate Register in the name of the holder thereof. The
Trust Certificates shall be printed, lithographed, typewritten or engraved or
may be produced in any other manner as is reasonably acceptable to the Owner
Trustee, as evidenced by its execution thereof.

                                  ARTICLE IV

                           ACTIONS BY OWNER TRUSTEE

     Section 4.01. Prior Notice with Respect to Certain Matters. With respect
to the following matters, the Owner Trustee shall not take action unless at
least 30 days before the taking of such action, the Owner Trustee shall have
notified the Certificateholders of record as of the preceding Record Date in
writing of the proposed action and such Certificateholders specified in
Section 4.04 hereof 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 Owner Trustee
     (except claims or lawsuits brought in connection with the collection of
     the Receivables) and the

                                      12

<PAGE>

     compromise of any action, claim or lawsuit brought by or against the
     Owner Trustee (except with respect to the aforementioned claims or
     lawsuits for collection of the Receivables);

               (b) the amendment of the Indenture by a supplemental indenture
     or any other change to this Agreement or any Basic Document in
     circumstances where the consent of any Noteholder is required;

               (c) the amendment of the Indenture by a supplemental indenture
     or any other change to this Agreement or any Basic Document in
     circumstances where the consent of any Noteholder is not required and
     such amendment would materially adversely affect the interests of the
     Certificateholders;

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

               (e) 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;

               (f) the consent to the calling or waiver of any default of any
     Basic Document;

               (g) the consent to the assignment by the Indenture Trustee or
     Master Servicer of their respective obligations under any Basic Document,
     unless permitted in the Basic Documents;

               (h) except as provided in Article IX hereof, dissolve,
     terminate or liquidate the Trust in whole or in part;

               (i) merge or consolidate the Trust with or into any other
     entity, or convey or transfer all or substantially all of the Trust's
     assets to any other entity;

               (j) cause the Owner Trustee to incur, assume or guaranty any
     indebtedness other than as set forth in this Agreement or the Basic
     Documents;

               (k) do any act that conflicts with any other Basic Document;

               (l) do any act that would make it impossible to carry on the
     ordinary business of the Trust as described in Section 2.03 hereof;

               (m) confess a judgment against the Owner Trustee;

                                      13

<PAGE>

               (n) possess Trust assets, or assign the Owner Trustee's right
     to property, for other than a Trust purpose;

               (o) cause the Owner Trustee to lend any funds to any entity,
     unless permitted in the Basic Documents; or

               (p) change the Trust's purpose and powers from those set forth
     in this Trust Agreement.

     In addition, the Owner Trustee shall not commingle its assets with those
of any other entity. The Owner Trustee shall maintain its financial and
accounting books and records separate from those of any other entity. Except
as expressly set forth herein, the Owner Trustee shall not pay the
indebtedness, operating expenses and liabilities of any other entity. The
Owner Trustee shall maintain appropriate minutes or other records of all
appropriate actions and shall maintain its office separate from the offices of
the Depositor and the Master Servicer.

     The Owner Trustee shall not have the power, except upon the written
direction of the Certificateholders pursuant to Section 4.04, and to the
extent otherwise consistent with the Basic Documents and permitted by
applicable law, to (i) remove or replace the Master Servicer or the Indenture
Trustee, (ii) institute proceedings to have the Owner Trustee or the Trust
declared or adjudicated bankrupt or insolvent, (iii) consent to the
institution of bankruptcy or insolvency proceedings against the Owner Trustee
or the Trust, (iv) file a petition or consent to a petition seeking
reorganization or relief on behalf of the Owner Trustee or the Trust under any
applicable federal or state law relating to bankruptcy, (v) consent to the
appointment of a conservator, receiver, liquidator, assignee, trustee,
sequestrator (or any similar official) of the Owner Trustee or the Trust or a
substantial portion of the property of the Owner Trustee or the Trust, (vi)
make any assignment for the benefit of the Owner Trustee's or the Trust's
creditors, (vii) cause the Owner Trustee or the Trust to admit in writing its
inability to pay its debts generally as they become due, or (viii) take any
action, or cause the Owner Trustee or the Trust to take any action, in
furtherance of any of the foregoing (any of the above, a "Bankruptcy Action").
So long as the Indenture remains in effect, no Certificateholder shall have
the power to take, and shall not take, any Bankruptcy Action with respect to
the Owner Trustee or the Trust or direct the Owner Trustee to take any
Bankruptcy Action with respect to the Owner Trustee or the Trust.
Additionally, the Owner Trustee shall not have the power to commence a
Bankruptcy Action without the unanimous prior approval of all
Certificateholders and the delivery to the Owner Trustee by each such
Certificateholder of a certification certifying that such Certificateholder
reasonably believes that the Trust is insolvent.

     Section 4.02. 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 (a) remove the Administrator under the
Administration Agreement pursuant to Section 8 thereof, (b) appoint a
successor Administrator pursuant to Section 8 of the Administration Agreement,
(c) remove the Master Servicer under the Sale and Servicing Agreement pursuant
to Section 8.02 thereof, (d) amend the Sale and Servicing Agreement pursuant
to Section 10.01(b) of such document, or (e) except as expressly provided in
the Basic Documents, sell the Receivables 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.

                                      14

<PAGE>

     Section 4.03. Restrictions on Certificateholders' Power. The
Certificateholders shall not direct the Owner Trustee to take or to 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 2.03; nor shall the Owner
Trustee be obligated to follow any such direction, if given.

     Section 4.04. Majority Control. Except as expressly provided herein, any
action that may be taken by the Certificateholders under this Agreement may be
taken by the Holders of Trust Certificates evidencing not less than a majority
of the Percentage Interests in the Certificates. Except as expressly provided
herein, any written notice of the Certificateholders delivered pursuant to
this Agreement shall be effective if signed by Holders of Trust Certificates
evidencing not less than a majority of the Percentage Interests in the
Certificates at the time of the delivery of such notice.

                                  ARTICLE V

                  APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     Section 5.01. Establishment of Trust Account. The Owner Trustee, for the
benefit of the Certificateholders, shall cause the Paying Agent to establish
and maintain in the name of the Owner Trustee an Eligible Account (the
"Certificate Distribution Account"), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the
Certificateholders. The title of the Certificate Distribution Account shall be
"Wachovia Bank of Delaware, National Association, as Owner Trustee of Regions
Auto Receivables Trust 2002-1: Certificate Distribution Account for the
benefit of the Certificateholders."

     The Owner Trustee shall possess all right, title and interest in all
funds on deposit from time to time in the Certificate Distribution Account and
in all proceeds thereof. Except as otherwise expressly provided herein, 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 Account,
the Owner Trustee (or the Depositor 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) cause
the Paying Agent to establish a new Certificate Distribution Account as an
Eligible Account and shall transfer any cash or any investments to such new
Certificate Distribution Account.

     Section 5.02. Application of Trust Funds.

          (a) On each Payment Date, the Owner Trustee shall cause the Paying
Agent to distribute to Certificateholders amounts deposited in the Certificate
Distribution Account pursuant to Section 5.06 of the Sale and Servicing
Agreement with respect to such Payment Date.

          (b) On each Payment Date, the Owner Trustee shall cause the Paying
Agent to send to each Certificateholder the statement or statements provided
to the Owner Trustee by the

                                      15

<PAGE>

Master Servicer pursuant to Section 5.08 of the Sale and Servicing Agreement
with respect to such Payment Date.

          (c) In the event that any withholding tax is imposed on the Owner
Trustee's payment (or allocations of income) to a Certificateholder, such tax
shall reduce the amount otherwise distributable to such Certificateholder in
accordance with this Section. The Owner Trustee and the Paying Agent are
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 Owner Trustee (but such authorization shall not prevent
the Owner Trustee or the Paying Agent 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 Owner
Trustee 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 or
the Paying Agent may in its sole discretion withhold such amounts in
accordance with this paragraph.

     Section 5.03. Method of Payment. Subject to Section 9.01(c),
distributions required to be made to Certificateholders on any Payment Date
shall be made to each Certificateholder of record on the preceding Record Date
either by wire transfer, in immediately available funds, to the account of
such Certificateholder at a bank or other entity having appropriate facilities
therefor, if such Certificateholder shall have provided to the Certificate
Registrar and the Paying Agent appropriate written instructions at least five
Business Days prior to such Payment Date and such Holder's Trust Certificates
in the aggregate evidence a denomination of not less than a thirty percent
(30%) Percentage Interest, or, if not, by check mailed to such
Certificateholder at the address of such Certificateholder appearing in the
Certificate Register.

     Section 5.04. [Reserved].

     Section 5.05. Accounting and Reports to Certificateholders, the Internal
Revenue Service and Others. The Owner Trustee shall (a) maintain (or cause to
be maintained) the books of the Trust on a calendar year basis and the accrual
method of accounting, (b) deliver (or cause to delivered) to each
Certificateholder, as may be required by the Code and applicable Treasury
Regulations, such information as may be required (including Schedule K-1 if
the Trust is treated as a partnership for federal income tax purposes) to
enable each Certificateholder to prepare its federal and state income tax
returns, (c) prepare (or cause to be prepared), file (or cause to be filed)
such tax returns relating to the Trust (including a partnership information
return, IRS Form 1065 if the Trust is treated as a partnership for federal
income tax purposes) and make such elections as from time to time may be
required or appropriate under any applicable state or federal statute or any
rule or regulation thereunder so as to maintain the Trust's characterization,
(d) cause such tax returns to be signed in the manner required by law and (e)
collect or cause to be collected any withholding tax as described in and in
accordance with Section 5.02(c) with respect to income or distributions to
Certificateholders. The Owner Trustee shall elect under Section 1278 of the
Code to include in income currently any market discount that accrues with
respect to the Receivables. The Owner Trustee shall not make the election
provided under Section 754 of the Code.

                                      16

<PAGE>

     Section 5.06. Signature on Returns; Tax Matters Partner.

          (a) The Owner Trustee shall sign on behalf of the Trust the tax
returns of the Trust, if any, unless applicable law requires a
Certificateholder to sign such documents.

          (b) In the event that the Trust is designated as a partnership for
federal income tax purposes, the Depositor shall be designated the initial
"tax matters partner" of the Trust pursuant to Section 6231(a)(7)(A) of the
Code and applicable Treasury Regulations.

                                  ARTICLE VI

                     AUTHORITY AND DUTIES OF OWNER TRUSTEE

     Section 6.01. General Authority. The Owner Trustee is authorized and
directed to execute and deliver the Basic Documents to which the Owner Trustee
is to be a party and each certificate or other document attached as an exhibit
to or contemplated by the Basic Documents to which the Owner Trustee is to be
a party, in each case, as evidenced conclusively by the Owner Trustee's
execution thereof. In addition to the foregoing, the Owner Trustee is
authorized to take all actions required of the Owner Trustee pursuant to the
Basic Documents. The Owner Trustee is further authorized from time to time to
take such action as the Administrator directs with respect to the Basic
Documents (except to the extent that this Agreement expressly requires the
consent of Certificateholders for such action, in which case the Owner Trustee
shall not take such action without such consent).

     Section 6.02. General Duties. It shall be the duty of the Owner Trustee:

          (a) to discharge (or cause to be discharged) all of its
responsibilities pursuant to the terms of this Agreement and the Basic
Documents to which the Owner Trustee is a party and to administer the Trust in
the interest of the Certificateholders, subject to the Basic Documents and in
accordance with the provisions of this Agreement; provided, however, that
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 held
liable for the default or failure of the Administrator to carry out its
obligations under the Administration Agreement; and

          (b) subject to Section 7.08 hereof, to cooperate with the
Administrator in carrying out the Administrator's obligation to qualify and
preserve the Owner Trustee's or the Trust's qualification to do business in
each jurisdiction, if any, in which such qualification is or shall be
necessary to protect the validity and enforceability of the Indenture, the
Notes, the Receivables and any other instrument and agreement included in the
Trust Estate; provided that the Owner Trustee may rely on advice of counsel
with respect to such obligation.

     Section 6.03. Action upon Instruction.

          (a) Subject to Article IV and in accordance with the terms of the
Basic Documents, the Certificateholders may by written instruction direct the
Owner Trustee in the

                                      17

<PAGE>

management of the Trust. Such direction may be exercised at any time by
written instruction of the Certificateholders pursuant to Article IV. In
addition, the Administrator may direct the Owner Trustee, and the Owner
Trustee is authorized to take direction from the Administrator pursuant to
Section 6.01.

          (b) 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 under any Basic Document, the Owner Trustee shall promptly give
notice (in such form as shall be appropriate under the circumstances) to the
Certificateholders of record as of the preceding Record Date 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 written instruction of
such Certificateholders 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 instruction within 10 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 not inconsistent with this Agreement or the
Basic Documents, as it shall deem to be in the best interests of the
Certificateholders, and shall have no liability to any Person for such action
or inaction.

          (d) In the event that the Owner Trustee is unsure as to the
application of any provision of this Agreement or any Basic Document or any
such provision is ambiguous as to its application, or is, or appears to be, in
conflict with any other applicable provision, or in the event that this
Agreement permits any determination by the Owner Trustee or is silent or is
incomplete as to the course of action that the Owner Trustee is required to
take with respect to a particular set of facts, the Owner Trustee may give
notice (in such form as shall be appropriate under the circumstances) to the
Certificateholders of record as of the preceding Record Date requesting
instruction and, to the extent that the Owner Trustee acts or refrains from
acting in good faith in accordance with any such instruction received, the
Owner Trustee shall not be liable, on account of such action or inaction, to
any Person. If the Owner Trustee shall not have received appropriate
instruction within 10 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 not inconsistent with this Agreement or the Basic
Documents, as it shall deem to be in the best interests of the
Certificateholders, and shall have no liability to any Person for such action
or inaction.

          Section 6.04. No Duties Except as Specified in this Agreement or in
Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of,
or otherwise deal with the Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated
hereby to which the Owner Trustee or the Trust is a party, except as expressly
provided by the terms of this Agreement or in any document or written
instruction received by the Owner Trustee

                                      18

<PAGE>

pursuant to Section 6.03; and no implied duties or obligations shall be read
into this Agreement or any Basic Document against the Owner Trustee. The Owner
Trustee shall have no responsibility for filing any financing or continuation
statement in any public office at any time or to otherwise perfect or maintain
the perfection of any security interest or Lien granted to it hereunder or to
prepare or file any Securities and Exchange Commission filing for the Trust or
to record this Agreement or any Basic Document. The Owner Trustee nevertheless
agrees that it will, at its own cost and expense, promptly take all action as
may be necessary to discharge any Liens on any part of the Trust Estate that
result from actions by, or claims against, the Owner Trustee in its individual
capacity that are not related to the ownership or the administration of the
Trust Estate.

     Section 6.05. No Action Except Under Specified Documents or Instructions.
The Owner Trustee shall not manage, control, use, sell, dispose of or
otherwise deal with any part of the Trust Estate except (i) in accordance with
the powers granted to and the authority conferred upon the Owner Trustee
pursuant to this Agreement, (ii) in accordance with the Basic Documents and
(iii) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to any provision of this Agreement.

     Section 6.06. Restrictions. The Owner Trustee shall not take any action
(a) that is inconsistent with the purposes of the Trust set forth in Section
2.03 or (b) that, to the actual knowledge of the Owner Trustee would 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.

                                 ARTICLE VII

                         CONCERNING THE OWNER TRUSTEE

     Section 7.01. Acceptance of Trusts and Duties. 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 moneys actually received by it
constituting part of the Trust Estate upon the terms of the Basic Documents
and this Agreement. The Owner Trustee, in its individual capacity, shall not
be answerable or accountable hereunder or under any Basic Document under any
circumstances, except (i) for its own willful misconduct or gross negligence
(except as provided in Section 7.01(g)) or (ii) in the case of the inaccuracy
of any representation or warranty contained in Section 7.03 expressly made by
the Owner Trustee in its individual capacity. In particular, but not by way of
limitation (and subject to the exceptions set forth in the preceding
sentence):

               (a) The Owner Trustee, in its individual capacity, shall not be
     liable for any error of judgment made by a Trust Officer of the Owner
     Trustee;

               (b) The Owner Trustee (either in its individual capacity or as
     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;

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<PAGE>

               (c) No provision of this Agreement or any Basic Document shall
     require the Owner Trustee, in its individual capacity, 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, in its
     individual capacity, be liable for indebtedness evidenced by or arising
     under any of the Basic Documents, including the principal of and interest
     on the Notes;

               (e) The Owner Trustee, in its individual capacity, shall not be
     responsible for or in respect of the validity or sufficiency of this
     Agreement or for the due execution hereof by the Depositor or for the
     form, character, genuineness, sufficiency, value or validity of any of
     the Trust Estate, or for or in respect of the validity or sufficiency of
     the Basic Documents, other than the certificate of authentication on the
     Trust Certificates, and the Owner Trustee, in its individual capacity,
     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 or expressly agreed to in the other Basic Documents;

               (f) The Owner Trustee (either in its individual capacity or as
     Owner Trustee) shall not be responsible for monitoring the performance
     of, and shall not be liable for the default or misconduct of the
     Administrator, the Depositor, the Master Servicer, the Indenture Trustee
     or any other Person under any of the Basic Documents or otherwise, and
     the Owner Trustee (either in its individual capacity or as 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 Depositor or the Master
     Servicer under the Sale and Servicing Agreement; and

               (g) The Owner Trustee (either in its individual capacity or as
     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, in its individual capacity, or
     indemnity satisfactory to it against the costs, expenses and liabilities
     that may be incurred by the Owner Trustee, in its individual capacity,
     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 7.02. Furnishing of Documents. The Owner Trustee shall
furnish to the Certificateholders, promptly upon receipt of a written request
therefor, duplicates or copies of all

                                      20

<PAGE>

reports, notices, requests, demands, certificates, financial statements and
any other instruments furnished to the Owner Trustee under the Basic
Documents.

     Section 7.03. Representations and Warranties. The Owner Trustee, in its
individual capacity, hereby represents and warrants to the Depositor, for the
benefit of the Certificateholders, that:

               (a) It is a national banking association duly organized and
     validly existing in good standing under the laws of the United States of
     America. It has all requisite corporate power and authority to execute,
     deliver and perform its obligations under this Agreement.

               (b) It has taken all corporate action necessary to authorize
     the execution and delivery by it of this Agreement and the Basic
     Documents, and this Agreement and the Basic Documents will be executed
     and delivered by one of its officers who is duly authorized to execute
     and deliver this Agreement and the Basic Documents on its behalf.

               (c) Neither the execution or the delivery by it of this
     Agreement, nor the consummation by it of the transactions contemplated
     hereby, nor compliance by it with any of the terms or provisions hereof
     will contravene any federal or Delaware law, governmental rule or
     regulation governing the banking or trust powers of the Owner Trustee or
     any judgment or order binding on it, or constitute any default under its
     charter documents or bylaws or any indenture, mortgage, contract,
     agreement or instrument to which it is a party or by which any of its
     properties may be bound.

     Section 7.04. Reliance; Advice of Counsel.

          (a) The Owner Trustee (either in its individual capacity or as 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. 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 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 (i) may act directly or through its agents
or attorneys 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
or attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care, and (ii) may consult with counsel, accountants
and other

                                      21

<PAGE>

skilled Persons to be selected with reasonable care and employed by it. The
Owner Trustee shall not be liable for anything done, suffered or omitted
reasonably and in good faith by it in accordance with the written opinion or
advice of any such counsel, accountants or other such Persons and not contrary
to this Agreement or any Basic Document.

     Section 7.05. Not Acting in Individual Capacity. Except as expressly
provided in this Article VII, in accepting the trusts hereby created, Wachovia
Bank of Delaware, National Association 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 Trust Estate for payment or
satisfaction thereof.

     Section 7.06. Owner Trustee Not Liable for Trust Certificates or for
Receivables. The recitals contained herein and in the Trust Certificates
(other than the signature and countersignature of the Owner Trustee on the
Trust Certificates) shall be taken as the statements of the Depositor, and the
Owner Trustee assumes no responsibility for the correctness thereof. Except as
set forth in Section 7.03, the Owner Trustee makes no representations as to
the validity or sufficiency of this Agreement, of any Basic Document or of the
Trust Certificates (other than the signature and countersignature of the Owner
Trustee on the Trust Certificates) or the Notes, or of any Receivable or
related documents. 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
Trust Estate or its ability to generate the payments to be distributed to
Certificateholders under this Agreement or the Noteholders under the
Indenture, including, without limitation: the existence, condition and
ownership of any Financed Vehicle; the existence and enforceability of any
insurance thereon; the existence and contents of any Receivable 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 Depositor or the Master 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 Indenture Trustee or the Master Servicer or any subservicer
taken in the name of the Owner Trustee.

     Section 7.07. Owner Trustee May Own Trust Certificates and Notes. The
Owner Trustee in its individual or any other capacity may become the owner or
pledgee of Trust Certificates or Notes and may deal with the Depositor, the
Administrator, the Indenture Trustee and the Master Servicer in banking
transactions with the same rights as it would have if it were not Owner
Trustee.

     Section 7.08. Doing Business in Other Jurisdictions. Notwithstanding
anything contained herein to the contrary, the Owner Trustee shall not be
required to take any action in any jurisdiction (except for the State of
Alabama) other than in the State of Delaware if the taking of such action will
(i) require the consent or approval or authorization or order of, or the
giving of notice to, or the registration with, or the taking of any other
action in required by, any state or other governmental authority or agency of
any jurisdiction other than the State of

                                      22

<PAGE>

Delaware; (ii) result in any fee, tax or other governmental charge under the
laws of any jurisdiction or any political subdivisions thereof in existence on
the date hereof other than the State of Delaware becoming payable by the Owner
Trustee; or (iii) subject the Owner Trustee to personal jurisdiction in any
jurisdiction other than the State of Delaware for causes of action arising
from acts unrelated to the consummation of the transactions by the Owner
Trustee contemplated hereby. The Owner Trustee shall be entitled to obtain
advice of counsel (which advice shall be an expense of the Administrator under
Section 8.01 of this Agreement) to determine whether any action required to be
taken pursuant to the Agreement results in the consequences described in
clauses (i), (ii) and (iii) of the preceding sentence. In the event that said
counsel advises the Owner Trustee that such action will result in such
consequences, the Owner Trustee will appoint an additional trustee pursuant to
Section 10.05 hereof to proceed with such action.

     Section 7.09. Paying Agent; Authenticating Agent. The rights and
protections afforded to the Owner Trustee pursuant to Article VII and Sections
8.02, 10.02, and 10.03 shall also be afforded to the Paying Agent,
authenticating agent and Certificate Registrar.

                                 ARTICLE VIII

                         COMPENSATION OF OWNER TRUSTEE

     Section 8.01. Owner Trustee's Fees and Expenses. The Administrator shall
pay to the Owner Trustee as compensation for its services hereunder such fees
as have been separately agreed upon before the date hereof between the
Administrator and the Owner Trustee, and the Administrator shall reimburse the
Owner Trustee for its other reasonable expenses hereunder, including the
reasonable compensation, expenses and disbursements of such agents,
representatives, experts and counsel as the Owner Trustee may employ in
connection with the exercise and performance of its rights and its duties
hereunder and under the Basic Documents.

     Section 8.02. Indemnification. The Trust shall indemnify the Owner
Trustee and its successors, assigns, agents and servants (collectively, the
"Indemnified Parties") from and against, any and all liabilities, obligations,
losses, damages, taxes, claims, actions and suits, and any and all reasonable
costs, expenses and disbursements (including reasonable legal fees and
expenses) of any kind and nature whatsoever (collectively, "Expenses") which
may at any time be imposed on, incurred by, or asserted against the Owner
Trustee or any Indemnified Party in any way relating to or arising out of this
Agreement, the Basic Documents, the Trust Estate, the administration of the
Trust Estate or the action or inaction of the Owner Trustee hereunder, except
only that the Trust shall not be liable for or required to indemnify an
Indemnified Party from or against Expenses arising or resulting from (i) the
willful misconduct, gross negligence or bad faith of the Owner Trustee or (ii)
the inaccuracy of a representation or warranty made by the Owner Trustee in
Section 7.03. The indemnities contained in this Section shall survive the
resignation or termination of the Owner Trustee or the termination of this
Agreement. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section, the Indemnified Party's choice of
legal counsel shall be subject to the approval of the Administrator, which
approval shall not be unreasonably withheld.

                                      23

<PAGE>

     Section 8.03. Payments to the Owner Trustee. Any amounts paid pursuant to
Section 8.02 shall be payable solely in the priority set forth in Section
5.06(b) of the Sale and Servicing Agreement and shall be deemed not to be a
part of the Trust Estate immediately after such payment.

                                  ARTICLE IX

                        TERMINATION OF TRUST AGREEMENT

     Section 9.01. Termination of Trust Agreement.

          (a) This Agreement (other than Section 5.05 and Article VIII) and
the Trust shall terminate and be of no further force or effect upon the final
distribution by the Owner Trustee of all moneys or other property or proceeds
of the Trust Estate in accordance with the terms of the Indenture, the Sale
and Servicing Agreement, Article V; provided, however, that in no event shall
the Trust created by this Agreement continue beyond the expiration of 21 years
from the death of the last survivor of the descendants of Joseph P. Kennedy,
the late ambassador of the Court of St. James, living on the date of this
Agreement. The bankruptcy, liquidation, dissolution, death or incapacity of
any Certificateholder shall not (i) operate to terminate this Agreement or the
Trust, (ii) 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 Trust Estate or
(iii) otherwise affect the rights, obligations and liabilities of the parties
hereto.

          (b) This Agreement and the Trust are irrevocable. Except as provided
in Section 9.01(a) and in this Section 9.01(b), neither the Depositor nor any
Certificateholder shall be entitled to revoke or terminate this Trust or this
Agreement. Each of the Depositor, the Certificateholders and the Owner Trustee
acknowledges that the Indenture Trustee, on behalf of the Noteholders, is a
third-party beneficiary of this Agreement. For so long as the Notes are
outstanding, neither the Trust nor this Agreement shall be revoked without the
consent of the Indenture Trustee. Each of the Depositor, the
Certificateholders and the Owner Trustee acknowledges that the Indenture
Trustee, as agent of the Noteholders, maintains a legitimate interest in
ensuring that the Trust is not revoked prior to the fulfillment of the Trust
purposes. In no event may this Agreement be amended without the consent of the
Indenture Trustee if the effect of such amendment is the revocation or
termination of this Trust other than in accordance with this Section 9.01.

          (c) Notice of any termination of the Trust, specifying the Payment
Date upon which Certificateholders shall surrender their Trust 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 Master
Servicer given pursuant to Section 9.01 of the Sale and Servicing Agreement,
stating (i) the Payment Date upon or with respect to which final payment of
the Trust Certificates shall be made upon presentation and surrender of the
Trust 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 Payment Date is not applicable, payments being made only
upon presentation and surrender of the Trust Certificates at the office of the
Paying Agent therein

                                      24

<PAGE>

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 Trust Certificates, the Paying Agent shall cause to be distributed to
Certificateholders amounts distributable on such Payment Date pursuant to
Section 5.02.

     In the event that all of the Certificateholders shall not surrender their
Trust Certificates for cancellation within six months after the date specified
in the above mentioned written notice, the Owner Trustee shall give a second
written notice to the remaining Certificateholders to surrender their Trust
Certificates for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice all the Trust 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 Trust
Certificates, and the cost thereof shall be paid out of the funds and other
assets that shall remain subject to this Agreement. Any funds remaining in the
Trust after exhaustion of such remedies shall be distributed by the Owner
Trustee to the Depositor, subject to applicable escheat laws.

                                  ARTICLE X

            SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

     Section 10.01. Eligibility Requirements for Owner Trustee. The Owner
Trustee shall at all times be a corporation, bank or trust company which is
not an affiliate of the Depositor (but may have normal banking relationships
with the Depositor and its affiliates); authorized to exercise trust powers
which shall be eligible to act as a trustee under Section 310(a) of the Trust
Indenture Act; having (or having a parent that has) a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by
federal or state authorities; and having (or having a parent that has) time
deposits that are rated at least A-1 by Standard & Poor's and P-1 by Moody's,
or which is otherwise acceptable to each Rating Agency. If such corporation,
bank or trust company shall publish reports of condition at least annually
pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purpose of this Section, the combined
capital and surplus of such corporation, bank or trust company shall be deemed
to be its combined capital and surplus as set forth in its most recent report
of condition so published. In case at any time the Owner Trustee shall cease
to be eligible in accordance with the provisions of this Section, the Owner
Trustee shall resign immediately in the manner and with the effect specified
in Section 10.02.

     Section 10.02. Resignation or Removal of Owner Trustee. The Owner Trustee
may at any time resign and be discharged from the trusts hereby created by
giving written notice thereof to the Administrator, the Indenture Trustee and
the Rating Agencies. Upon receiving such notice of resignation, the
Administrator shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to
the resigning Owner Trustee and one copy to the successor Owner Trustee. If no
successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee may petition any court of competent jurisdiction for
the appointment of a successor Owner Trustee, provided, however, that such
right to appoint or

                                      25

<PAGE>

to petition for the appointment of any such successor shall in no event
relieve the resigning Owner Trustee from any obligations otherwise imposed on
it under the Basic Documents until such successor has in fact assumed such
appointment.

     If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 10.01 and shall fail to resign after written
request therefor by the Administrator, or if at any time the Owner Trustee
shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or
a receiver of the Owner Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Administrator may remove the Owner Trustee. If the
Administrator shall remove the Owner Trustee under the authority of the
immediately preceding sentence, 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.

     Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section
shall not become effective until acceptance of appointment by the successor
Owner Trustee pursuant to Section 10.03 and payment of all fees and expenses
owed to the outgoing Owner Trustee. The Administrator shall provide notice of
such resignation or removal of the Owner Trustee to the Certificateholders,
the Indenture Trustee and each of the Rating Agencies.

     Section 10.03. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 10.01 or 10.02 shall execute, acknowledge and
deliver to the Administrator and to its predecessor Owner Trustee an
instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor Owner Trustee shall become
effective, and such successor Owner Trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor under this Agreement, with like effect as if
originally named as Owner Trustee. 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; and 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.

     No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 10.01.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Administrator shall mail notice thereof to all
Certificateholders, the Master Servicer, the Indenture Trustee, the
Noteholders and the Rating Agencies. If the Administrator shall fail to mail
such notice within 10 days after acceptance of such appointment by the
successor Owner Trustee, the successor Owner Trustee shall cause such notice
to be mailed at the expense of the Administrator.

                                      26

<PAGE>

     Section 10.04. 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, without
the execution or filing of any instrument or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding;
provided, that such Person shall be eligible pursuant to Section 10.01; and
provided further, that the Owner Trustee shall mail notice of such merger or
consolidation to each Rating Agency.

     Section 10.05. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any
part of the Trust Estate or any Financed Vehicle may at the time be located,
the Administrator and the Owner Trustee acting jointly shall have the power
and shall execute and deliver all instruments to appoint one or more Persons
approved by the Administrator and Owner Trustee to act as co-trustee, jointly
with the Owner Trustee, or as separate trustee or separate trustees, of all or
any part of the Trust Estate, and to vest in such Person, in such capacity,
such title to the Trust Estate or any part thereof and, subject to the other
provisions of this Section, 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 Owner Trustee pursuant to Section 10.01 and no
notice of the appointment of any co-trustee or separate trustee shall be
required pursuant to Section 10.03.

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

               (a) 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 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 Estate 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;

               (b) No trustee under this Agreement shall be personally liable
     by reason of any act or omission of any other trustee under this
     Agreement nor shall any trustee have any duty to supervise any other
     trustee hereunder; and

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

                                      27

<PAGE>

     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.

     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 co-trustee or separate trustee.

                                  ARTICLE XI

                                 MISCELLANEOUS

     Section 11.01. Supplements and Amendments. This Agreement may be amended
by the Depositor and the Owner Trustee, with prior written notice to each
Rating Agency, without the consent of any of the Noteholders or the
Certificateholders, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions in this Agreement
or of modifying in any manner the rights of the Noteholders or the
Certificateholders; provided, however, that such action shall not, as
evidenced by the satisfaction of the Rating Agency Condition with respect to
such amendment, adversely affect in any material respect the interests of any
Noteholder or Certificateholder.

     This Agreement may also be amended from time to time by the Depositor and
the Owner Trustee, with prior written notice to each Rating Agency, with the
consent of the Holders (as defined in the Indenture) of Notes evidencing not
less than a majority of the Outstanding Amount of the Notes and the consent of
the Holders of Certificates evidencing not less than a majority of the
Percentage Interests in the 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 for the benefit of the Noteholders or the
Certificateholders or (b) reduce the aforesaid percentage of the Outstanding
Amount of the Notes and the Percentage Interests in the Certificates required
to consent to any such amendment, without the consent of the Holders of all
then-outstanding Notes and Certificates.

                                      28

<PAGE>

     Promptly after the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment
or consent to each Certificateholder, the Indenture Trustee and each Rating
Agency.

     It shall not be necessary for the consent of Certificateholders or
Noteholders pursuant to this Section 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.

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

     Section 11.02. No Legal Title to Trust Estate in Certificateholders.
Neither the Depositor nor the Certificateholders shall have legal title to any
part of the 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 IX. No transfer, by operation of law or
otherwise, of any right, title or interest of the Certificateholders to and in
their undivided ownership interest in the 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 Trust
Estate.

     Section 11.03. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Depositor, 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 (other than The Bank of New York to the extent expressly provided
herein) any legal or equitable right, remedy or claim in the Trust Estate or
under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

     Section 11.04. Notices.

          (a) Unless otherwise expressly specified or permitted by the terms
hereof, all notices shall be in writing and shall be deemed given upon receipt
by the intended recipient or three Business Days after mailing if mailed by
certified mail, postage prepaid (except that notice to the Owner Trustee shall
be deemed given only upon actual receipt by the Owner Trustee), if to the
Owner Trustee, addressed to the Corporate Trust Office; if to the Depositor,
addressed to Regions Acceptance LLC, 417 20th Street North, Birmingham,
Alabama 35203, Attention: Ronald Luth; if to The Bank of New York, addressed
to The Bank of New York, 101 Barclay Street -- 8 West, New York, New York,
10286 (facsimile number (212) 815-2493), Attention: Asset Backed Securities
Unit; or, as to each party, at such other address as shall be designated by

                                      29

<PAGE>

such party in a written notice to each other party. A copy of any such notice
shall also be mailed to the Master Servicer, addressed to Regions Bank, 417
20th Street North, Birmingham, Alabama 35203, Attention: Ronald Luth, with a
copy to Regions Bank, Office of the General Counsel, 417 20th Street North,
Birmingham, Alabama 35203, Attention: R. Alan Deer.

          (b) Any notice required or permitted to be given to a
Certificateholder shall be given by first-class mail, postage prepaid, at the
address of such Certificateholder as shown in the Certificate Register. Any
notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given, whether or not such
Certificateholder receives such notice.

     Section 11.05. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

     Section 11.06. Separate 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 but one and the same instrument.

     Section 11.07. Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, each of
the Depositor and its permitted assignees, the Owner Trustee and its
successors and each Certificateholder and its 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 11.08. Covenants of the Depositor. The Depositor will not at any
time institute against the Trust any bankruptcy proceedings under any United
States federal or state bankruptcy or similar law in connection with any
obligations relating to the Trust Certificates, the Notes, this Agreement or
any of the other Basic Documents.

     Section 11.09. No Petition. The Owner Trustee, by entering into this
Agreement, each Certificateholder, by accepting a Trust Certificate, and the
Indenture Trustee and each Noteholder, by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute
against the Depositor or the Trust or join in any institution against the
Depositor or the Trust of, any bankruptcy proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Trust Certificates, the Notes, this Agreement or any of the
Basic Documents.

     Section 11.10. No Recourse. Each Certificateholder by accepting a Trust
Certificate acknowledges that such Trust Certificate represents a beneficial
interest in the Trust only and does not represent an interest in or an
obligation of the Depositor, the Master Servicer, the Administrator, the Owner
Trustee, the Indenture Trustee or any Affiliate thereof and no recourse may be
had against such parties or their assets, except as may be expressly set forth
or contemplated in this Agreement, the Trust Certificates or the Basic
Documents.

                                      30

<PAGE>

     Section 11.11. 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 11.12. 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 11.13. Trust Certificate Transfer Restrictions. The Trust
Certificates may not be acquired by or for the account of (a) unless an
Opinion of Counsel has been delivered in accordance with the third paragraph
of Section 3.04, (i) an employee benefit plan (as defined in Section 3(3) of
ERISA) that is subject to the provisions of Title I of ERISA, (ii) a plan
described in Section 4975(e)(1) of the Code, (iii) any entity whose underlying
assets include plan assets by reason of a plan's investment in the entity or
otherwise under ERISA (each, a "Benefit Plan"), or (b) a Person who is not
either (A)(1) a citizen or individual resident of the United States, (2) a
corporation, partnership or other entity organized in or under the laws of the
United States, any state thereof or the District of Columbia or (3) a Person
not described in (A)(1) or (2) whose ownership of the Trust Certificates is
effectively connected with such Person's conduct of a trade or business within
the United States (within the meaning of the Code) and its ownership of any
interest in a Certificate will not result in any withholding obligation with
respect to any payments with respect to the Trust Certificates by any Person
(other than withholding, if any, under Section 1446 of the Code) or (B) an
estate the income of which is includible in gross income for federal income
tax purposes regardless of source or a trust if (1) the court within the
United States is able to exercise primary supervision of the administration of
such trust and one or more United States persons have the authority to control
all substantial decisions of the Issuer or (2) such trust was in existence on
August 20, 1996 and properly elected to continue to be treated as a United
States person. The purchaser of Trust Certificates must agree to provide a
certification of non-foreign status signed under penalty of perjury and,
alternatively, if it is a Person described in clause (A)(3) above, it will
furnish to the transferor and the Owner Trustee or the Certificate Registrar a
properly executed IRS Form W-8ECI and a new IRS Form W-8ECI upon the
expiration or obsolescence of any previously delivered form (and such other
certifications, representations or Opinions of Counsel as may be requested by
the transferor and the Owner Trustee). By accepting and holding a Trust
Certificate, the Holder thereof shall be deemed to have represented and
warranted that it is not a Benefit Plan.

     Section 11.14. Acceptance of Terms of Agreement. The receipt and
acceptance of a Trust Certificate by a Certificateholder, without any
signature or further manifestation of assent, shall constitute the
unconditional acceptance by the Certificateholder of all the terms and
provisions of this Agreement, and shall constitute the agreement of the
Certificateholder that the terms and provisions of this Agreement shall be
binding, operative and effective as between the Owner Trustee and the
Certificateholder.

                                      31

<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.

                                   REGIONS ACCEPTANCE LLC,
                                     as Depositor

                                   By:        /s/ Ronald A. Luth
                                          ----------------------------------
                                          Name:   Ronald A. Luth
                                          Title:  President

                                   WACHOVIA BANK OF DELAWARE,
                                   NATIONAL ASSOCIATION,
                                     as Owner Trustee

                                   By:        /s/ Anita M. Roselli
                                          ----------------------------------
                                          Name:   Anita M. Roselli
                                          Title:  Trust Officer

<PAGE>

THE BANK OF NEW YORK, solely
   for the purposes of accepting (i) the
   appointment to act as Certificate Registrar
   pursuant to Section 3.04, (ii) the
   appointment to act as Paying Agent
   pursuant to Section 3.09, and (iii) the
   designation of its office pursuant to
   Section 3.08

By:        /s/ Allison R. Clan
       ----------------------------------------------
       Name:   Allison R. Clan
       Title:  Assistant Treasurer

<PAGE>

                                                                     EXHIBIT A

                           FORM OF TRUST CERTIFICATE

     THIS TRUST CERTIFICATE IS SUBORDINATE TO THE NOTES, AS SET FORTH IN THE
SALE AND SERVICING AGREEMENT.

     THIS TRUST CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER THE SECURITIES
OR BLUE SKY LAWS OF ANY STATE IN THE UNITED STATES OR ANY FOREIGN SECURITIES
LAWS. BY ITS ACCEPTANCE OF THIS TRUST CERTIFICATE THE HOLDER HEREOF UNLESS
SUCH HOLDER IS THE DEPOSITOR OR AN AFFILIATE THEREOF IS DEEMED TO REPRESENT TO
THE DEPOSITOR AND THE OWNER TRUSTEE (i) THAT IT IS AN "ACCREDITED INVESTOR" AS
DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D PROMULGATED UNDER
THE 1933 ACT (AN "ACCREDITED INVESTOR") AND THAT IT IS ACQUIRING THIS TRUST
CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE ACCREDITED INVESTORS
UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY) FOR INVESTMENT
AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, THE PUBLIC
DISTRIBUTION HEREOF OR (ii) THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" AS
DEFINED IN RULE 144A UNDER THE 1933 ACT AND IS ACQUIRING SUCH TRUST
CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS).

     NO SALE, PLEDGE OR OTHER TRANSFER OF THIS TRUST CERTIFICATE MAY BE MADE
BY ANY PERSON UNLESS EITHER (i) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO
THE DEPOSITOR, (ii) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO AN
ACCREDITED INVESTOR THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY IN THE FORM
SPECIFIED IN THE AMENDED AND RESTATED TRUST AGREEMENT DATED AS OF NOVEMBER 15,
2002 (THE "TRUST AGREEMENT") BETWEEN REGIONS ACCEPTANCE LLC AND WACHOVIA BANK
OF DELAWARE, NATIONAL ASSOCIATION, TO THE EFFECT THAT IT IS AN ACCREDITED
INVESTOR ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS
A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE ACCREDITED INVESTORS
UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY), (iii) SO LONG
AS THIS TRUST CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER
THE 1933 ACT, SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHOM THE
PROSPECTIVE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A "QUALIFIED
INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A), ACTING FOR ITS OWN ACCOUNT
(AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS
(WHICH OTHERS ALSO ARE QUALIFIED

                                      1

<PAGE>

INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (iv) SUCH SALE, PLEDGE OR
OTHER TRANSFER IS OTHERWISE MADE IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT, IN WHICH CASE (A) THE OWNER TRUSTEE SHALL
REQUIRE THAT BOTH THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE TRANSFEREE
CERTIFY TO THE OWNER TRUSTEE AND THE DEPOSITOR IN WRITING THE FACTS
SURROUNDING SUCH TRANSFER, WHICH CERTIFICATION SHALL BE IN FORM AND SUBSTANCE
SATISFACTORY TO THE OWNER TRUSTEE AND THE DEPOSITOR, AND (B) THE OWNER TRUSTEE
SHALL REQUIRE A WRITTEN OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE
OF THE DEPOSITOR, ANY AFFILIATE OF THE DEPOSITOR OR THE OWNER TRUSTEE)
SATISFACTORY TO THE DEPOSITOR AND THE OWNER TRUSTEE TO THE EFFECT THAT SUCH
TRANSFER WILL NOT VIOLATE THE 1933 ACT.

     EACH CERTIFICATEHOLDER, BY ITS ACCEPTANCE OF THIS TRUST CERTIFICATE,
COVENANTS AND AGREES THAT SUCH CERTIFICATEHOLDER SHALL NOT, PRIOR TO THE DATE
THAT IS ONE YEAR AND ONE DAY AFTER THE TERMINATION OF THE TRUST AGREEMENT,
ACQUIESCE, PETITION OR OTHERWISE INVOKE OR CAUSE THE TRUST OR THE DEPOSITOR TO
INVOKE THE PROCESS OF ANY COURT OR GOVERNMENTAL AUTHORITY FOR THE PURPOSE OF
COMMENCING OR SUSTAINING A CASE AGAINST THE TRUST OR THE DEPOSITOR UNDER ANY
FEDERAL OR STATE BANKRUPTCY, INSOLVENCY, REORGANIZATION OR SIMILAR LAW, OR
APPOINTING A CONSERVATOR, RECEIVER, LIQUIDATOR, ASSIGNEE, TRUSTEE, CUSTODIAN,
SEQUESTRATOR OR OTHER SIMILAR OFFICIAL OF THE TRUST OR THE DEPOSITOR OR ANY
SUBSTANTIAL PART OF ITS PROPERTY, OR ORDERING THE WINDING UP OR LIQUIDATION OF
THE AFFAIRS OF THE TRUST OR THE DEPOSITOR.

     NO TRANSFER OF A TRUST CERTIFICATE SHALL BE MADE TO ANY PERSON UNLESS THE
OWNER TRUSTEE HAS RECEIVED (A) A CERTIFICATE IN SUBSTANTIALLY THE FORM
SPECIFIED IN THE TRUST AGREEMENT FROM SUCH PERSON TO THE EFFECT THAT SUCH
PERSON IS NOT (I) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS
SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (II) A PLAN DESCRIBED IN
SECTION 4975(E)(1) OF THE CODE OR (III) ANY ENTITY WHOSE UNDERLYING ASSETS
INCLUDE PLAN ASSETS BY REASON OF A PLAN'S INVESTMENT IN THE ENTITY OR
OTHERWISE UNDER ERISA (EACH, A "BENEFIT PLAN"), OR (B) AN OPINION OF COUNSEL
SATISFACTORY TO THE OWNER TRUSTEE AND THE DEPOSITOR TO THE EFFECT THAT THE
PURCHASE AND HOLDING OF SUCH TRUST CERTIFICATE WILL NOT CONSTITUTE OR RESULT
IN THE ASSETS OF THE TRUST BEING DEEMED TO BE "PLAN ASSETS" SUBJECT TO THE
PROHIBITED TRANSACTIONS PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE AND
WILL NOT SUBJECT THE OWNER TRUSTEE, THE INDENTURE TRUSTEE OR THE DEPOSITOR TO
ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE BASIC DOCUMENTS.

                                      2

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT DEPOSITS OR OBLIGATIONS OF OR AN
INTEREST IN REGIONS BANK OR ANY OF ITS AFFILIATES.

     THIS CERTIFICATE IS NOT GUARANTEED OR INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY GOVERNMENTAL AGENCY.

                                      3

<PAGE>

NUMBER R-___               PERCENTAGE INTEREST:  [  ]%

                     REGIONS AUTO RECEIVABLES TRUST 2002-1

                                  CERTIFICATE

evidencing a fractional undivided beneficial interest in the Trust, as defined
below, the property of which consists of: (1) the Receivables and all moneys
received thereon on or after the Cutoff Date; (2) the security interests in
the Financed Vehicles and any accessions thereto granted by Obligors pursuant
to the Receivables and any other interest of the Depositor in such Financed
Vehicles; (3) any Liquidation Proceeds and any other proceeds with respect to
the Receivables from claims on any physical damage, credit life or disability
insurance policies covering the Financed Vehicles or the related Obligors,
including any vendor's single interest or other collateral protection
insurance policy; (4) any property that shall have secured a Receivable and
shall have been acquired by or on behalf of the Depositor, the Master Servicer
or the Trust; (5) the proceeds from any Master Servicer's errors and omissions
protection policy, any fidelity bond and any blanket physical damage policy,
to the extent such proceeds relate to any Financed Vehicle; (6) all documents
and other items contained in the Receivable Files; (7) all of the Depositor's
rights (but not its obligations) under the Receivables Purchase Agreement; (8)
all right, title and interest in all funds on deposit from time to time in the
Trust Accounts and the Certificate Distribution Account and in all investments
therein and proceeds thereof (including all Investment Earnings thereon); (9)
all accounts, money, chattel paper, securities, instruments, documents,
deposit accounts, certificates of deposit, letters of credit, advices of
credit, banker's acceptances, uncertificated securities, general intangibles,
contract rights, goods and other property consisting of, arising from or
relating to any and all of the foregoing; and (10) the proceeds of any and all
of the foregoing.

     THIS TRUST CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR AN OBLIGATION
OF REGIONS ACCEPTANCE LLC, REGIONS BANK, WACHOVIA BANK OF DELAWARE, NATIONAL
ASSOCIATION OR ANY OF THEIR RESPECTIVE AFFILIATES.

     THIS CERTIFIES THAT ________________ is the registered owner of a [ ]%
PERCENT nonassessable, fully paid, undivided percentage interest in REGIONS
AUTO RECEIVABLES TRUST 2002-1, a common law trust under the laws of the State
of Delaware (the "Trust"), formed by REGIONS ACCEPTANCE LLC, a Delaware
limited liability company (the "Depositor").

     The Trust was created pursuant to a Trust Agreement amended and restated
as of November 15, 2002 (as amended, supplemented or otherwise modified from
time to time, the "Trust Agreement"), between the Depositor and Wachovia Bank
of Delaware, National Association, 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 or the Sale and
Servicing Agreement dated as of November 15, 2002 (as amended, supplemented or
otherwise modified from time to time, the "Sale and Servicing Agreement"),
among the Trust,

                                      4

<PAGE>

the Depositor, Regions Bank, as Master Servicer, Seller, Custodian and
Administrator, and The Bank of New York, as Indenture Trustee, as applicable.

This Trust Certificate is one of the duly authorized Trust Certificates
designated as "Asset Backed Certificates" (herein called the "Trust
Certificates"). Also issued under an Indenture dated as of November 15, 2002
(as amended, supplemented or otherwise modified from time to time, the
"Indenture"), between the Owner Trustee on behalf of the Trust and The Bank of
New York, as indenture trustee, are the classes of Notes designated as "1.435%
Asset Backed Notes, Class A-1," "1.94% Asset Backed Notes, Class A-2," "2.63%
Asset Backed Notes, Class A-3" and "3.26% Asset Backed Notes, Class A-4"
(collectively, the "Class A Notes"), "3.24% Asset Backed Notes, Class B" (the
"Class B Notes") and "4.81% Asset Backed Notes, Class C" (the "Class C Notes",
and together with the Class A Notes and the Class B Notes, the "Notes"). This
Trust Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement, to which Trust Agreement the Holder of this
Trust Certificate by virtue of its acceptance hereof assents and by which such
Certificateholder is bound. The property of the Trust consists of: (1) the
Receivables and all moneys received thereon on or after the Cutoff Date; (2)
the security interests in the Financed Vehicles and any accessions thereto
granted by Obligors pursuant to the Receivables and any other interest of the
Depositor in such Financed Vehicles; (3) any Liquidation Proceeds and any
other proceeds with respect to the Receivables from claims on any physical
damage, credit life or disability insurance policies covering the Financed
Vehicles or the related Obligors, including any vendor's single interest or
other collateral protection insurance policy; (4) any property that shall have
secured a Receivable and shall have been acquired by or on behalf of the
Depositor, the Master Servicer or the Trust; (5) the proceeds from any Master
Servicer's errors and omissions protection policy, any fidelity bond and any
blanket physical damage policy, to the extent such proceeds relate to any
Financed Vehicle; (6) all documents and other items contained in the
Receivable Files; (7) all of the Depositor's rights (but not its obligations)
under the Receivables Purchase Agreement; (8) all right, title and interest in
all funds on deposit from time to time in the Trust Accounts and the
Certificate Distribution Account and in all investments therein and proceeds
thereof (including all Investment Earnings thereon); (9) all accounts, money,
chattel paper, securities, instruments, documents, deposit accounts,
certificates of deposit, letters of credit, advices of credit, banker's
acceptances, uncertificated securities, general intangibles, contract rights,
goods and other property consisting of, arising from or relating to any and
all of the foregoing; and (10) the proceeds of any and all of the foregoing.
The rights of the Certificateholders are subordinate to the rights of the
Noteholders, as set forth in the Sale and Servicing Agreement.

     Under the Trust Agreement, there will be distributed on the 15th day of
each month or, if such 15th day is not a Business Day, the next Business Day
(each, a "Payment Date"), commencing on January 15, 2003, to the Person in
whose name this Trust Certificate is registered on the last day of the
immediately preceding month (the "Record Date"), such Certificateholder's
fractional undivided interest in the amount to be distributed to
Certificateholders on such Payment Date.

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

                                      5

<PAGE>

     It is the intent of the Depositor and the Certificateholders that, to the
extent the Certificates are beneficially owned by a single Certificateholder
for purposes of federal income, state and local income and single business tax
and any other income taxes, the Trust will be treated as an agent of the sole
Certificateholder and to the extent the Certificates are beneficially owned by
more than one Certificateholder as a partnership with the Certificateholders
being treated as partners in that tax partnership. A Certificateholder, by its
acceptance of a Trust Certificate, agrees to so treat, and to take no action
inconsistent with the treatment of, the Trust for such tax purposes as an
agent of the Trust and not as a separate tax entity for federal income tax and
state income and franchise tax purposes.

     Each Certificateholder, by its acceptance of a Trust Certificate, agrees
to treat, and to take no action inconsistent with the treatment of, the Trust
Certificates for such tax purposes as the beneficial ownership interests in an
entity that is disregarded if there is only one Certificateholder or as
partnership interests in the Trust if there is more than one
Certificateholder.

     A Certificateholder, by its acceptance of a Trust Certificate, covenants
and agrees that such Certificateholder will not at any time institute against
the Depositor, the Owner Trustee or the Trust, or join in any institution
against the Depositor, the Owner Trustee or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Trust Certificates, the
Notes, the Trust Agreement or any of the Basic Documents.

     Payments on this Trust Certificate will be made as provided in the Trust
Agreement by the Owner Trustee or the Paying Agent by wire transfer or check
mailed to the Certificateholder of record in the Certificate Register without
the presentation or surrender of this Trust Certificate or the making of any
notation hereon. Except as otherwise provided in the Trust Agreement and
notwithstanding the above, the final distribution on this Trust Certificate
will be made after due notice by the Owner Trustee of the pendency of such
payment and only upon presentation and surrender of this Trust Certificate at
the office or agency designated for that 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 Trust
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 or The Bank of New York, as the
Owner Trustee's authenticating agent, by manual signature, this Trust
Certificate shall not entitle the Holder hereof to any benefit under the Trust
Agreement or the Sale and Servicing Agreement or be valid for any purpose.

     THIS TRUST 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

                                      6

<PAGE>

REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

                                      7

<PAGE>

     IN WITNESS WHEREOF, the Owner Trustee has caused this Trust Certificate
to be duly executed.

<TABLE>
<S>                                  <C>
                                      WACHOVIA BANK OF DELAWARE,
                                      NATIONAL ASSOCIATION, not in its individual
                                      capacity but solely as Owner Trustee of REGIONS
                                      AUTO RECEIVABLES TRUST 2002-1

Dated:  December 3, 2002              By:
                                             ------------------------------------------
                                             Authorized Signatory
</TABLE>

                 OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

WACHOVIA BANK OF DELAWARE,            WACHOVIA BANK OF DELAWARE,
NATIONAL ASSOCIATION,                 NATIONAL ASSOCIATION,
as Owner Trustee                 or   as Owner Trustee

                                      By:  The Bank of New York, as
                                           Authenticating Agent

By:                                   By:
     -------------------------             -----------------------------
     Authorizing Agent                     Authorizing Agent

                                      8

<PAGE>

                        [REVERSE OF TRUST CERTIFICATE]

     The Trust Certificates do not represent an obligation of, or an interest
in, the Depositor, the Master Servicer, the Owner Trustee in its individual
capacity or any affiliates of any of them and no recourse may be had against
such parties or their assets, except as expressly set forth or contemplated
herein or in the Trust Agreement or the Basic Documents. In addition, this
Trust 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 Sale and Servicing Agreement. A
copy of each of the Sale and Servicing Agreement and the Trust Agreement may
be examined by any Certificateholder upon written request during normal
business hours at the principal office of the Depositor and at such other
places, if any, designated by the Depositor.

     The Trust Agreement, with certain exceptions provided therein, may be
amended from time to time by the Depositor and the Owner Trustee, with prior
written notice to each Rating Agency, with the consent of the Holders (as
defined in the Indenture) of Notes evidencing not less than a majority of the
Outstanding Amount of the Notes and the consent of the Holders of Certificates
evidencing not less than a majority of the Percentage Interests in the
Certificates, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Trust Agreement or of
modifying in any manner the rights of the Noteholders or the
Certificateholders. Any such consent by the Holder of this Trust Certificate
shall be conclusive and binding on such Holder and on all future Holders of
this Trust Certificate and of any Trust 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 Trust Certificate. The Trust Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Trust Certificates.

     As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Trust Certificate is registerable in
the Certificate Register upon surrender of this Trust Certificate for
registration of transfer at the offices or agencies of the Certificate
Registrar designated by the Owner Trustee in the Borough of Manhattan, 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 Trust 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 The Bank of New York, New York, New York.

     Except as provided in the Trust Agreement, the Trust Certificates are
issuable only as registered Trust Certificates without coupons in minimum
denominations of one percent Percentage Interest. As provided in the Trust
Agreement and subject to certain limitations therein set forth, Trust
Certificates are exchangeable for new Trust Certificates of authorized
denominations evidencing the same aggregate denomination, as requested by the
Certificateholder surrendering the same. No service charge will be made for
any such registration of transfer or exchange, but the Owner Trustee or the
Certificate Registrar may

                                      9

<PAGE>

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
Trust 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 Owner Trustee
Agreement and the Trust created thereby shall terminate upon the payment to
Certificateholders of all amounts required to be paid to them pursuant to the
Trust Agreement and the Sale and Servicing Agreement and the disposition of
all property held as part of the Trust Estate. The Master Servicer of the
Receivables may at its option purchase the Trust Estate at a price specified
in the Sale and Servicing Agreement, and such purchase of the Receivables and
other property of the Trust will effect early retirement of the Trust
Certificates; provided, however, that such right of purchase is exercisable
only as of the Determination Date as of which the Pool Balance is less than or
equal to 10% of the Initial Pool Balance.

     Unless an Opinion of Counsel has been delivered in accordance with the
third paragraph of Section 3.04 of the Trust Agreement, the Trust Certificates
may not be acquired by or on behalf of (a) an employee benefit plan (as
defined in Section 3(3) of ERISA) that is subject to the provisions of Title I
of ERISA, (b) a plan described in Section 4975(e)(1) of the Code or (c) any
entity whose underlying assets include plan assets by reason of a plan's
investment in the entity, or otherwise under ERISA (each, a "Benefit Plan").
By accepting and holding this Trust Certificate, the Holder hereof shall be
deemed to have represented and warranted either (i) that it is not a Benefit
Plan or (ii) that it has delivered such an Opinion of Counsel.

                                      10

<PAGE>

                                  ASSIGNMENT

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

<TABLE>
<S>     <C>
         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 Trust Certificate, and all rights thereunder, and hereby irrevocably constitutes and

          appoints ____________, attorney, to transfer said Trust Certificate on the books of the

          Certificate Registrar, with full power of substitution in the premises.

          Dated:                                            _____________________________*/
                                                                Signature Guaranteed:

                                                            _____________________________*/
</TABLE>

          ------------------------
     */   NOTICE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Trust
Certificate in every particular, without alteration, enlargement or any change
whatever. Such signature must be guaranteed by an "eligible guarantor
institution" meeting the requirements of the Certificate Registrar, which
requirements include membership or participation in STAMP or such other
"signature guarantee program" as may be determined by the Certificate
Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

                                      11

<PAGE>

                                     A-1

<PAGE>

                                                                     EXHIBIT B

                        FORM OF TRANSFEROR CERTIFICATE

                                    [DATE]

[The Bank of New York
101 Barclay Street - 8 West
New York, New York 10286
Attention:  Asset Backed Securities Unit

Regions Acceptance LLC
417 20th Street North
Birmingham, Alabama 35203]

[Wachovia Bank of Delaware, National Association,
as Owner Trustee
One Rodney Square
920 King Street
Wilmington, Delaware 19801
Attention: Corporate Trust Administration]

     Re:  Regions Auto Receivables Trust 2002-1
          -------------------------------------

Ladies and Gentlemen:

     In connection with our disposition of the Asset Backed Certificates (the
"Certificates") issued by the referenced trust (the "Trust") we certify that
(a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being transferred by
us in a transaction that is exempt from the registration requirements of the
Act and (b) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, in a manner that would be
deemed, or taken any other action which would result in, a violation of
Section 5 of the Act.

                                            Very truly yours,

                                            [NAME OF TRANSFEROR]

                                            By:
                                               --------------------------------
                                                     Authorized Officer

                                     B-1

<PAGE>

                                                                     EXHIBIT C

                           FORM OF INVESTMENT LETTER

[The Bank of New York
101 Barclay Street - 8 West
New York, New York 10286
Attention:  Asset Backed Securities Unit

Regions Acceptance LLC
417 20th Street North
Birmingham, Alabama]

[Wachovia Bank of Delaware, National Association,
as Owner Trustee
One Rodney Square
920 King Street
Wilmington, Delaware 19801
Attention: Corporate Trust Administration]

Ladies and Gentlemen:

     In connection with our proposed purchase of a [o]% percentage interest in
the Asset Backed Certificates (the "Certificates") of Regions Auto Receivables
Trust 2002-1 (the "Issuer"), we confirm that:

          1. We understand that the Certificates have not been registered
     under the Securities Act of 1933, as amended (the "1933 Act") and may not
     be sold except as permitted in the following sentence. We understand and
     agree, on our own behalf and on behalf of any accounts for which we are
     acting as hereinafter stated, (x) that such Certificates are being
     offered only in a transaction not involving any public offering within
     the meaning of the 1933 Act and (y) that such Certificates may be resold,
     pledged or transferred only (i) to the Depositor, (ii) to an "accredited
     investor" as defined in Rule 501(a)(1),(2),(3) or (7) (an "Accredited
     Investor") under the 1933 Act acting for its own account (and not for the
     account of others) or as a fiduciary or agent for others (which others
     also are Accredited Investors unless the holder is a bank acting in its
     fiduciary capacity) that executes a certificate substantially in the form
     hereof, (iii) so long as such Certificate is eligible for resale pursuant
     to Rule 144A under the 1933 Act ("Rule 144A"), to a person whom we
     reasonably believe after due inquiry is a "qualified institutional buyer"
     as defined in Rule 144A, acting for its own account (and not for the
     account of others) or as a fiduciary or agent for others (which others
     also are "qualified institutional buyers") to whom notice is given that
     the resale, pledge or transfer is being made in reliance on Rule 144A or
     (iv) in a sale, pledge or other transfer made in a transaction otherwise
     exempt from the registration requirements of the 1933 Act, in which case
     the Owner Trustee shall require that both the prospective transferor and
     the prospective transferee certify to the Owner Trustee or the
     Certificate Registrar and the

                                     C-1

<PAGE>

     Depositor in writing the facts surrounding such transfer, which
     certification shall be in form and substance satisfactory to the Owner
     Trustee and the Depositor. Except in the case of a transfer described in
     clauses (i) or (iii) above, the Owner Trustee shall require that a
     written opinion of counsel (which will not be at the expense of the
     Depositor, any affiliate of the Depositor, the Owner Trustee or the
     Certificate Registrar) satisfactory to the Owner Trustee or the
     Certificate Registrar and the Depositor be delivered to the Owner Trustee
     or the Certificate Registrar and the Depositor to the effect that such
     transfer will not violate the 1933 Act, in each case in accordance with
     any applicable securities laws of any state of the United States. We will
     notify any purchaser of the Certificates from us of the above resale
     restrictions, if then applicable. We further understand that in
     connection with any transfer of the Certificates by us that the Depositor
     and the Owner Trustee may request, and if so requested we will furnish
     such certificates and other information as they may reasonably require to
     confirm that any such transfer complies with the foregoing restrictions.

          2.                    [CHECK ONE]

/ /  (a) We are an "accredited investor" (as defined in Rule 501(a)(1),(2),(3)
     or (7) of Regulation D under the 1933 Act) acting for our own account
     (and not for the account of others) or as a fiduciary or agent for others
     (which others also are Accredited Investors unless we are a bank acting
     in its fiduciary capacity). We have such knowledge and experience in
     financial and business matters as to be capable of evaluating the merits
     and risks of our investment in the Certificates, and we and any accounts
     for which we are acting are each able to bear the economic risk of our or
     their investment for an indefinite period of time. We are acquiring the
     Certificates for investment and not with a view to, or for offer and sale
     in connection with, a public distribution.

/ /  (b) We are a "qualified institutional buyer" as defined under Rule 144A
     under the 1933 Act and are acquiring the Certificates for our own account
     (and not for the account of others) or as a fiduciary or agent for others
     (which others also are "qualified institutional buyers"). We are familiar
     with Rule 144A under the 1933 Act and are aware that the seller of the
     Certificates and other parties intend to rely on the statements made
     herein and the exemption from the registration requirements of the 1933
     Act provided by Rule 144A.

          3. We are not and are not acting on behalf of (i) an employee
     benefit plan (as defined in Section 3(3) of the Employee Retirement
     Income Security Act of 1974, as amended ("ERISA")) that is subject to the
     provisions of Title I of ERISA, (ii) a plan described in Section
     4975(e)(1) of the Code or (iii) any entity whose underlying assets
     include plan assets by reason of a plan's investment in the entity or
     otherwise under ERISA (each, a "Benefit Plan"). We hereby acknowledge
     that no transfer of any Certificate shall be permitted to be made to any
     person unless the Owner Trustee has received (i) a certificate from such
     transferee to the effect of the preceding sentence, or (ii) an opinion of
     counsel satisfactory to the Owner Trustee to the effect that the purchase
     and holding of any such Certificate will not constitute or result in the
     assets of the Issuer being deemed to be "plan assets" and subject to the
     prohibited transaction provisions of ERISA or Section 4975 of the Code
     and will not subject the Owner Trustee, the Indenture

                                     C-2

<PAGE>

     Trustee or the Depositor to any obligation in addition to those
     undertaken in the Basic Documents with respect to the Certificates
     (provided, however, that the Owner Trustee will not require such
     certificate or opinion in the event that, as a result of change of law or
     otherwise, counsel satisfactory to the Owner Trustee has rendered an
     opinion to the effect that the purchase and holding of any such
     Certificate by a Benefit Plan or a Person that is purchasing or holding
     any such Certificate with the assets of a Benefit Plan will not
     constitute or result in a prohibited transaction under ERISA or Section
     4975 of the Code).

          4. We are a Person who is either (A)(1) a citizen or individual
     resident of the United States, (2) a corporation, partnership or other
     entity organized in or under the laws of the United States, any state
     thereof or the District of Columbia or (3) a Person not described in
     (A)(1) or (2) whose ownership of the Trust Certificates is effectively
     connected with such Person's conduct of a trade or business within the
     United States (within the meaning of the Code) and its ownership of any
     interest in a Certificate will not result in any withholding obligation
     with respect to any payments with respect to the Trust Certificates by
     any Person (other than withholding, if any, under Section 1446 of the
     Code) or (B) an estate the income of which is includible in gross income
     for federal income tax purposes regardless of source or a trust if (1)
     the court within the United States is able to exercise primary
     supervision of the administration of such trust and one or more United
     States persons have the authority to control all substantial decisions of
     the Issuer or (2) such trust was in existence on August 20, 1996 and
     properly elected to continue to be treated as a United States person. We
     agree to provide a certification of non-foreign status signed under
     penalty of perjury and, alternatively, that if we are a Person described
     in clause (A)(3) above, we will furnish to the transferor and the Owner
     Trustee a properly executed IRS Form W-8ECI and a new IRS Form W-8ECI
     upon the expiration or obsolescence of any previously delivered form (and
     such other certifications, representations or Opinions of Counsel as may
     be requested by the transferor and the Owner Trustee).

          5. We understand that the Depositor, the Owner Trustee, the Issuer,
     Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Keegan &
     Company Inc. and others will rely upon the truth and accuracy of the
     foregoing acknowledgments, representations and agreements, and we agree
     that if any of the acknowledgments, representations and warranties deemed
     to have been made by us by our purchase of the Certificates, for our own
     account or for one or more accounts as to each of which we exercise sole
     investment discretion, are no longer accurate, we shall promptly notify
     the Depositor, the Owner Trustee, Merrill Lynch, Pierce, Fenner & Smith
     Incorporated and Morgan Keegan & Company Inc.

          6. You are entitled to rely upon this letter and you are irrevocably
     authorized to produce this letter or a copy hereof to any interested
     party in any administrative or legal proceeding or official inquiry with
     respect to the matters covered hereby.

                              Very truly yours,

                              [NAME OF PURCHASER]

                                     C-3

<PAGE>

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

                                     Date:
                                     -----------------------------------------

                                     C-4<PAGE>

                                                                     Exhibit 4.2

                                2 MERIDIAN ROAD

                               ETOBICOKE, ONTARIO

                                INDUSTRIAL LEASE

                                    BETWEEN

                             565991 ONTARIO LIMITED

                                      AND

                            LORUS THERAPEUTICS INC.
<PAGE>
     THIS LEASE is this 27th day of July, 2001

B E T W E E N:

                             565991 ONTARIO LIMITED
                                (the "Landlord")

                                     -and-

                            LORUS THERAPEUTICS INC.
                                 (the "Tenant")

                                   ARTICLE 1

                            PREMISES - TERM AND USE

1.01     Grant and Premises  In consideration of the performance by the Tenant
of its obligations under this lease, the Landlord leases the Premises (as
hereinafter defined) to the Tenant for the Term (as hereinafter defined).

1.02     Term  The Term of this lease is three (3) years from the 1st day of
April, 2002 to the 31st day of March, 2005.

1.03     Use and Conduct of Business  The Premises shall be used only for
offices, storage and animal and laboratory facilities and for no other purpose.
The Tenant shall conduct its business in the Premises in a reputable and first
class manner. It shall be the responsibility of the tenant to obtain all
necessary municipal licenses and approvals, including any occupancy permit to
carry on its business operations in the Premises in accordance with the use
provided herein. The Tenant shall comply promptly with and conform to the
requirements of all applicable statutes, by-laws, regulations, ordinances and
orders from time to time or at any time in force during the Term of this lease
relating to the particular manner of use by the Tenant of the Premises and with
every applicable regulation, order and requirement of the Insurance Bureau of
Canada or any body having similar functions or of any liability or fire
insurance company by which the Landlord and the Tenant or either of them may be
insured at any time during the Term hereof.

1.04     Acceptance of Premises  The Tenant acknowledges that the Tenant is
taking possession of the Premises, including the existing Leasehold
Improvements, as is, where is, and that such taking of possession shall be
conclusive evidence as against the Tenant that at the time thereof the
Premises and the Leasehold Improvements were in good order and satisfactory
condition, including the heating, electrical, lighting, plumbing, sprinkler,
air-conditioning, mechanical and ventilation systems and roof, and that all
premises, representations and undertakings by or binding upon the Landlord and
made to the Tenant with respect to any alteration, remodelling or decorating
of or installation of fixtures or Leasehold Improvements in the Premises have
been fully satisfied and performed by the Landlord.

                                   ARTICLE II

                                  DEFINITIONS

2.01     In this lease and in the Schedules, if any, to this lease:

(a)      "Additional Rent" means all sums of money required to be paid by the
         Tenant under this lease (except Net Rent) whether or not the same are
         designated "Additional Rent" or are payable to the Landlord or
         otherwise.

(b)      "Alterations" means all repairs, replacements, improvements or
         alterations to the Premises by the Tenant.

(c)      "Architect" means a qualified architect from time to time named by the
         Landlord.

(d)      "Building" means the industrial building located on the Lands and which
         Building has a leasable area of 20,5000 square feet more or less.

<PAGE>
                                     - 2 -

(e)      "Business Tax" means all taxes (whether imposed on the Landlord or
Tenant) attributable to the personal property, trade fixtures, business, income,
occupancy or sales of the Tenant or any other occupant of the Premises and to
any Leasehold Improvements installed in the Premises and to the use of the
Building or Lands by the Tenant.

(f)      "Capital Tax" means the amount of capital tax payable by the Landlord
or the owners of the Lands and Building under the Corporations Tax Act of
Ontario, as amended or replaced from time to time or any other legislation
imposing taxes on account of capital.

(g)      "Commencement Date" means the date on which the Term commences under
Section 1.02 hereof.

(h)      "Contaminant" means any substance which is capable of causing
pollution or contamination to air, land or water and includes any wastes,
contaminants, pollutants, toxic substances or hazardous materials as defined
under applicable federal, provincial or municipal laws, regulations or
guidelines.

(i)      An "Event of Default" shall occur whenever: (i) any Rent is in arrears
and is not paid within 5 days after written demand by the Landlord; (ii) the
Tenant has breached any of its obligations in this lease (other than the payment
of Rent) and: (aa) fails to remedy such breach within 15 days (or such shorter
period as may be provided in this lease); or (bb) if such breach cannot
reasonably be remedied within 15 days or such shorter period, the Tenant fails
to commence to remedy such breach within such 15 days or shorter period or
thereafter fails to proceed diligently to remedy such breach, in either case
after notice in writing from the Landlord; (iii) the Tenant becomes bankrupt or
insolvent or takes the benefit of any statute for bankrupt or insolvent debtors
or makes any proposal, assignment or arrangement with its creditors, or any
steps are taken or proceedings commenced by any Person for the dissolution,
winding-up or other termination of the Tenant's existence or the liquidation of
its assets; (iv) a trustee, receiver, receiver/manager or like Person is
appointed with respect to the business or assets of the Tenant; (v) the Tenant
makes a sale in bulk of all or a substantial portion of its assets other than in
conjunction with a Transfer approved by the Landlord; (vi) this lease or any of
the Tenant's assets are taken under a writ of execution; (vii) the Tenant
purports to make a Transfer other than in compliance with the provisions of this
lease; (viii) the Tenant abandons or attempts to abandon the Premises or
disposes of its goods so that there would not after such disposal be sufficient
goods of the Tenant on the Premises subject to distress to satisfy Rent for at
least 3 months, or the Premises become vacant and unoccupied for a period of 10
consecutive days or more without the consent of the Landlord; or (ix) any
insurance policies covering any part of the Building or any occupant thereof are
actually threatened to be cancelled or adversely changed as a result of any use
or occupancy of the Premises.

(j)      "Landlord" means the party named as landlord on the first page of this
lease.

(k)      "Lands" means the lands situated in the City of Toronto in the Province
of Ontario on which the Building is constructed and municipally known as 2
Meridian Road, Toronto, Ontario, as more particularly described in Schedule "A".

(l)      "Leasehold Improvements" means leasehold improvements in the Premises
determined according to common law, and shall include, without limitation, all
fixtures, improvements, installations, alterations and additions from time to
time made, erected or installed in the Building or on the Lands by or on behalf
of the Tenant or any previous occupant of the Premises, including signs and
lettering, partitions, doors and hardware however affixed and whether or not
movable, all mechanical, electrical and utility installations and all carpeting
and drapes with the exception only of furniture and equipment not in the nature
of fixtures.

(m)      "Mortgage" means any and all mortgages, charges, debentures, security
agreements, trust deeds, hypothecs or like instruments resulting from any
financing, refinancing or collateral financing (including renewals or
extensions thereof) made or arranged by the Landlord of its interest in all or
any part of the Premises.

(n)      "Mortgagee" means the holder of, or secured party under, any Mortgage
and includes any trustee for bondholders.

(o)      "Net Rent" means the annual rent payable by the Tenant under Section
3.02.

(p)      "Person" means any person, firm, partnership or corporation, or any
group or combination of persons, firms, partnerships or corporations.

(q)      "Premises" means the Lands and the Building and includes Leasehold
Improvements in or on such premises.
<PAGE>
                                     - 3 -

(r)      "Rent" means the aggregate of Net Rent and Additional Rent.

(s)      "Taxes" means all taxes, levies, charges, local improvement rates,
school assessments (separate and otherwise) and assessments whatsoever assessed
or charged against the Building and the Lands or any part thereof by any lawful
taxing authority and including any amounts assessed or charged in substitution
for or in lieu of any such taxes, including Capital Tax and the Federal Large
Corporations Tax, but excluding only such taxes as capital gains taxes,
corporate, income, profit or excess profit taxes to the extent such taxes are
not levied in lieu of any of the foregoing against the Building or Lands or the
Landlord in respect thereof.

(t)      "Tenant" means the party named as tenant on the first page of this
lease.

(u)      "Term" means the period set out in Section 1.02.

(v)      "Trade Fixtures" means trade fixtures as determined at common law, but
for greater certainty, shall not include: (i) heating, ventilating or air
conditioning systems, facilities and equipment in or serving the Building; (ii)
floor coverings affixed to the floor of the Building; (iii) light fixtures;
(iv) internal stairways and doors; (v) plumbing, sinks, toilets and washroom
partitions; and (vi) any fixtures, facilities, equipment or installations
installed by or at the expense of the Landlord. "Trade Fixtures" shall include
all laboratory equipment and related facilities installed by the Tenant for its
animal experiments.

(w)      "Transfer" means an assignment of this lease in whole or in part, a
sublease of all or any part of the Premises, any transaction whereby the rights
of the Tenant under this lease or to the Premises are transferred to another,
any transaction by which any right of use or occupancy of all or any part of
the Premises is conferred upon anyone, any mortgage, charge or encumbrance of
this lease or the Premises or any part thereof or other arrangement under which
either this lease or the Premises becomes security for any indebtedness or
other obligations and includes any transaction or occurrence whatsoever
(including, but not limited to, expropriation, receivership proceedings,
seizure by legal process and transfer by operation of law), which has changed
or might change the identity of the Persons having lawful use or occupancy of
any part of the Premises.

(x)      "Transferee" means the Person or Persons to whom a Transfer is or is
to be made.

                                  ARTICLE III

                                      RENT

3.01     Covenant to Pay  Except as may be provided in Section 3.02, the Tenant
shall pay Rent from the Commencement Date without prior demand and without any
deduction, abatement, set-off or compensation. If the Commencement Date is not
on the first day of a calendar month, or the first or last Fiscal Year of the
Term comprises less than 12 calendar months, then Rent for such month and such
Fiscal Years shall be pro-rated on a per diem basis, based upon a period of 365
days.

3.02     Net Rent

(a)      The Tenant shall pay Net Rent in equal monthly instalments each in
advance on the first day of each calendar month of the Term as follows:

<TABLE>
<CAPTION>
                                        Annual            Monthly      Net Rent per
           Rent                        Net Rent         Instalments    Square Foot
------------------------------        -----------       -----------    ------------
<S>                                   <C>                <C>              <C>
April 1, 2002 - March 31, 2003        $102,500.00        $8,541.67        $5.00
April 1, 2003 - March 31, 2004        $107,625.00        $8,968.75        $5.25
April 1, 2004 - March 31, 2005        $112,750.00        $9,395.83        $5.50
</TABLE>

(b)      The Tenant shall pay the amount of any goods and services tax, sales
tax, value added tax or any similar tax charged or levied by any government or
other applicable taxing authority on any payments due to the Landlord as Net
Rent.
<PAGE>
                                     - 4 -

(c)      The annual Net Rent and monthly instalments thereof at the
above-mentioned rates per square foot per annum shall be calculated on the
basis of the Premises and Building having a leaseable area of 20,5000 square
feet.

3.03     Payment of Additional Rent

(a)      The Rent payable by the Tenant shall be net to the Landlord and clear
of all Taxes, insurance premiums and all costs relating to the Premises, except
for the Landlord's corporate and income taxes (except as otherwise provided
herein), and any principal, interest or other costs payable by the Landlord in
respect of the Landlord's debts. The Tenant shall, except for those costs
required to be paid by the Landlord under this lease, pay all costs and
expenses relating to, or reasonably incurred in respect of, the Premises.

(b)      There shall be no reduction in Rent if all or part of the Premises
become unusable or are damaged or destroyed, except as provided for in Article
VI.

(c)      The Tenant shall pay when due all Business Tax. If the Tenant's
Business Tax is payable by the Landlord to the relevant taxing authority, the
Tenant shall pay the amount thereof to the Landlord or as it directs.

(d)      The Tenant shall promptly deliver to the Landlord on request, copies
of assessment notices, tax bills and other documents received by the Tenant
relating to Taxes and Business Tax and receipts for payment of Taxes and
Business Tax payable by the Tenant.

(e)      The Tenant shall on demand, pay to the Landlord or to the appropriate
taxing authority if required by the Landlord, all goods and services taxes,
sales taxes, value added taxes, business transfer taxes, or any other taxes
imposed on the Landlord with respect to Rent or in respect of the rental of
space under this lease, whether characterized as a goods and services tax, sales
tax, value added tax, business transfer tax or otherwise. The Landlord shall
have the same remedies and rights with respect to the payment or recovery of
such taxes as it has for the payment or recovery of Rent under this lease.

(f)      The Tenant shall pay all Taxes as well as the cost of insurance which
the Landlord is obligated or permitted to obtain under this lease in accordance
with Section 5.03.

(g)      The Tenant shall have the right to contest the amount or legality of
the realty taxes forming part of the Taxes (the "Realty Taxes") and to make
application for the reduction of Realty Taxes or of any assessment upon which
the Realty Taxes are based. The Landlord will, upon the Tenant's written
request, provide or make available to the Tenant information in the Landlord's
possession or control which is required to contest the amount or legality of
the Realty Taxes. The Tenant shall diligently prosecute any such contest, and
shall immediately after the final determination of such contest, pay the amount
of the Realty Taxes which were the subject of such contest as so determined, as
and when they become due and payable, together with any interest, penalties or
other charges which are payable in connection with the Realty Taxes. Before
commencing proceedings to contest any the Realty Taxes, the Tenant shall pay to
the Landlord the amount of Realty Taxes due, or such alternative security as
requested by the Landlord, to be held by the Landlord pending the determination
of such contest. On the determination of such contest, the Landlord shall pay,
out of the amount held by it, the amount required to be paid by the Tenant on
account of the Realty Taxes, and if the amount held by the Landlord exceeds the
amount of Realty Taxes required to be paid by the Tenant, the Landlord shall
make the necessary rebate of such excess amount to the Tenant. If the amount
held by the Landlord is insufficient to pay all of the Realty Taxes, the Tenant
shall, immediately on the determination of such contest, pay to the appropriate
taxing authorities such additional amount as may be required to satisfy the
Realty Taxes in full. The Tenant shall deliver to the Landlord within 90 days
after the date on which the Realty Taxes and charges described in this Section
are paid, official receipts of the appropriate taxing authority evidencing
payment of same.

(h)      There shall be excluded or deducted from Additional Rent the following:

         (i)      capital taxes;

         (ii)     debt servicing costs and retirement of debt;
<PAGE>
                                     - 5 -

         (iii)    all costs of capital nature as determined in accordance with
         generally accepted accounting principals; for the purposes of this
         Section capital costs shall include the cost of leasing equipment if
         the cost of purchasing such equipment would be a capital cost in
         accordance with generally accepted accounting principals and if such
         equipment is normally purchased by the landlords or owners of similar
         buildings;

         (iv)     the cost of replacement of the structure of the Building,
         including, without limitation, the roof and the roof membrane;

         (v)      the cost of any repair, replacement or maintenance required as
         a result of any inherent structural defect in the Building;

         (vi)     costs arising from the negligence of the Landlord or those for
         whom it is in law responsible;

         (vii)    fees paid to a management company in connection with the
         operation of the Building;

         (viii)   any fines or penalties that the Landlord incurs in connection
         with any failure to perform obligations, such as the late payment of
         Taxes;

         (ix)     any monies received by the Landlord pursuant to any warranties
         and guarantees to the extent that such monies are a reimbursement for
         work the cost of which was previously included in Additional Rent;

         (x)      any costs included in Additional rent representing an amount
         paid to any person or other entity related to the Landlord which are in
         excess of the amounts which would have been paid had the Landlord acted
         as a reasonably prudent manager and administrator.

3.04     Additional Rent  Except as otherwise provided in this lease, all
Additional Rent shall be payable by the Tenant to the Landlord within 20
business days after demand.

3.05     Rent Past Due  All Rent past due shall bear interest from the date on
which same became due until the date of payment at five percent (5%) per annum
in excess of the prime interest rate for Canadian Dollar demand loans announced
from time to time by any Canadian chartered bank designated by the Landlord.

3.06     Utilities  The Tenant shall pay, when due, all charges for gas,
electricity, water, steam, telephone and other utilities used in or on the
Premises. The Tenant shall also pay for apparatus, meters and other things
leased or purchased at the request of the Tenant or the utility's provider, or
as may be required by the Landlord, acting reasonably, in connection with
utility services, and for all work performed by anyone in connection with such
utilities.

3.07     Net Lease  This lease is a completely net lease to the Landlord,
except as expressly herein set out.

3.08     Deposits

(a)      The Landlord acknowledges receipt of the Tenant's deposit in the
amount of $9,139.57 in Canadian funds which will be applied, without interest,
against the Net Rent (and GST) due for the period April 1 to 30, 2002.

(b)      The Landlord further acknowledges receipt of the Tenant's deposit in
the amount of $10,000.00 in Canadian funds which will not be applied on account
of Rent but is to be held by the Landlord, without interest, as security for
the full and faithful performance by the Tenant of all the agreements, terms,
covenants and conditions herein set forth and applied against expenses or other
costs or damages incurred by the Landlord and to be payable as liquidated
damages and not as penalty, upon forfeiture, default or early termination by
the Tenant without prejudice to any further claims by the Landlord for damages
and any remedy for recovery thereof. In the event the Tenant carries out the
terms and conditions of this lease, the Tenant shall, after vacating the
Premises be entitled to the return of its deposit less any deductions made in
respect of any default of the Tenant.

<PAGE>
                                     - 6 -

                                   ARTICLE IV

                      MAINTENANCE, REPAIRS AND ALTERATIONS

4.01     Maintenance by Tenant

(a)      Except for damage caused by fire or other insured casualty, the
repair of which is provided for in Article V, the Tenant shall, at its own
expense;

         (i)      maintain and repair the interior and exterior of the Building,
         including the roof and parking lot, in good order and first class
         condition in the same manner as a careful and prudent owner would do
         including, without limitation, the repair of wear and tear which is
         necessary to maintain the improvements and equipment of the Building in
         such manner so that they function properly having regard to their
         nature and purpose for which they are intended to be used or to keep
         the appearance of the Premises neat, clean and presentable, provided
         that the Tenant shall not be required to repair any structural defects,
         unless such structural defects are caused or contributed to by the
         fault or negligence of the Tenant or those for whom it is in law
         responsible, in which case the repair of such structural defects shall
         be the Tenant's responsibility; and

         (ii)     maintain and make such repairs and replacements to the roof
         (except for structural defects, unless such structural defects are
         caused or contributed to by the fault or the negligence of the Tenant
         or those for whom it is in law responsible), equipment, facilities,
         paved areas, fences, landscaping and other installations forming part
         of the Building or the Premises, including the Leasehold Improvements,
         heating, ventilating, air-conditioning, mechanical, electrical and
         plumbing systems, and to keep same in good order and first class
         condition in the same manner as a careful and prudent owner would do
         including, without limitation, the repair of wear and tear which is
         necessary to maintain same in such manner so that they function
         properly having regard to their nature and the purpose for which they
         are intended to be used or to keep the appearance of the Premises neat,
         clean and presentable.

(b)      The Landlord may, with 24 hours prior notice, except in cases of
emergency when no notice is required, enter the Premises to view the state of
repair. If the Landlord notifies the Tenant of the need for repairs, the Tenant
will repair in accordance with such notice, subject to the exceptions set out
in subsection (a) above. On the expiration or date of early termination of this
lease, the Tenant shall surrender the Premises to the Landlord in broom-swept
condition and in a good state of repair consistent with the obligations imposed
upon the Tenant during the Term. No provision of this subsection (b) shall
require the Tenant on the expiration or other termination of this lease to
repair reasonable wear and tear, except to the extent that repair of wear and
tear is necessary to maintain the improvements and equipment of the Building in
such manner so that they shall function properly, having regard to their nature
and the purpose for which they are intended to be used, and except to the
extent that repair of wear and tear is necessary to keep the appearance of the
Premises neat, clean and presentable. All repairs required to be made pursuant
to this subsection (b) shall be completed prior to the date upon which this
lease terminates.

(c)      If the Tenant is in default of the provisions of subsections (a) and
(b) above, the Landlord may proceed to make the needed repairs and may then
charge its costs for so doing to the Tenant for immediate payment on demand.

(d)      The Tenant shall keep the Premises and the sidewalks and other areas
adjacent to the Premises, clean and free of refuse and other obstructions, and
shall comply with any laws governing the condition or cleanliness of the
Premises, the sidewalks and such adjacent areas.

(e)      The Tenant shall not, by its act or omission, permit anything to occur
in the Premises which shall be or shall result in a nuisance.

(f)      The Tenant shall promptly comply with the requirements of all laws at
any time in force during the Term which affect the condition or use of the
Premises. If the Tenant defaults under the provisions of this subsection, the
Landlord may itself comply with the requirements of this subsection, and the
Tenant shall within 20 business days pay all reasonable expenses incurred by
the Landlord in so doing.

(g)      The Tenant shall heat the Building at its own expense to such
temperature as may be necessary to prevent damage to the Building, the
Leasehold Improvements and the Trade Fixtures.

4.02     Tenant's Alterations

(a)      The Tenant shall not place any thing on, nor make any opening in, the
roof or walls of the Building, without the prior written consent of the
Landlord, which consent shall not be unreasonably
<PAGE>
                                     - 7 -

withheld or delayed. On the termination of this lease, or at such time as the
Tenant vacates the Premises, the Tenant shall repair any damage caused to the
Building as a result of having placed any thing on, or having made openings in,
the roof, and shall restore the roof and walls to the their condition at the
Commencement Date, all to the satisfaction of the Landlord, acting reasonably.

(b)      The Tenant shall have the right, at is sole cost, to erect such
corporate signage on the Lands or Building as it may require to identify its
business. All signs shall be in conformity with applicable laws and by-laws,
and shall be subject to the prior written approval of the Landlord which
approval shall not be unreasonably withheld. Prior to the expiration of the
Term, the Tenant shall, at its cost, remove all such signage on the Lands and
Building and any damage caused to the Building or Lands as a result of erecting
or removing signs shall be repaired by the Tenant, at its sole cost, to the
reasonable satisfaction of the Landlord, prior to the expiration of the Term.

(c)      The Tenant shall make no Alterations to the Building or on the Lands
unless it has first delivered to the Landlord plans showing such proposed
alterations or additions in reasonable detail, and obtained the written consent
of the Landlord to such plans and any Alterations. The Landlord shall not
unreasonably withhold or delay such consent, but may give consent on such
conditions as the Landlord considers proper in the circumstances. All work
performed shall be performed at the Tenant's sole cost, in a good and
workmanlike manner, free from defects and using new first class materials, and
construction shall be subject to supervision by the Landlord. It shall not be
considered unreasonable for the Landlord to withhold its consent to any
Alterations if they in any way involve the structural elements of the Building
or the Premises. In addition, all work shall be completed to the satisfaction
of the Landlord, acting reasonably. The Tenant shall, at its cost, obtain all
required permits and comply with all laws, by-laws and regulations of all
governmental authorities having jurisdiction.

(d)      The Tenant shall indemnify the Landlord from all actions and
liabilities for which the Landlord may become liable as a result of any breach
by the Tenant of a covenant of this lease, or as a result of any personal
injury, property damage or death occurring because of the wilful act or
omission or negligence of the Tenant or those for whom it is in law
responsible. This indemnification shall survive the termination of this Lease
insofar as any such breach, personal injury, property damage or death occurring
during the Term.

         The Landlord shall indemnify the Tenant from all actions and
liabilities for which the Tenant may become liable as a result of any breach by
the Landlord of a covenant of this lease, or as a result of any personal
injury, property damage or death occurring because of the wilful act or
omission or negligence of the Landlord or those for whom it is in law
responsible. This indemnification shall survive the termination of this Lease
insofar as any such breach, personal injury, property damage or death occurring
during the Term.

(e)      Except in the case of injury, death or property damage caused by any
breach by the Landlord of a covenant in this lease, or by the wilful act or
omission or negligence of the Landlord or those for whom it is in law
responsible, the Landlord shall not be liable for any personal injury, death or
property damage sustained by the Tenant, or its employees, agents, sublessees,
licensees, or those doing business with it in or on the Premises, no matter how
caused; and the Tenant shall indemnify the Landlord against all actions or
liabilities arising out of such personal injury, death or property damage or
loss. The Tenant releases the Landlord and its officers, agents and employees
from all claims for damages or other expenses arising out of such personal
injury, death or property loss or damage, except as aforesaid.

         Except in the case of injury, death or property damage caused by any
breach by the Tenant of a covenant in this lease, or by the wilful act or
omission or negligence of the Tenant or those for whom it is in law
responsible, the Tenant shall not be liable for any personal injury, death or
property damage sustained by the Landlord, or its employees, agents, sublessees,
licensees, or those doing business with it in or on the Premises, no matter how
caused; and the Landlord shall indemnify the Tenant against all actions or
liabilities arising out of such personal injury, death or property damage or
loss. The Landlord releases the Tenant and its officers, agents and employees
from all claims for damages or other expenses arising out of such personal
injury, death or property loss or damage, except as aforesaid.

(f)      The Tenant shall pay the costs of installing, upgrading and
maintaining a sprinkler supervisory system in the Building, if such a system is
required by any law or regulation of any governmental authority or any fire or
liability insurance company by which either the Landlord or Tenant may be
insured during the Term.

<PAGE>
                                     - 8 -

(g)      Notwithstanding anything to the contrary contained in this lease, the
Tenant shall not cut down any trees on the Lands.

4.03     Removal of Improvements and Fixtures  All Leasehold Improvements (other
than Trade Fixtures), shall immediately upon their placement become the
Landlord's property without compensation to the Tenant. Except as otherwise
agreed by the Landlord in writing, no Leasehold Improvements shall be removed
from the Premises by the Tenant either during or at the expiry or sooner
termination of the Term except that:

(a)      the Tenant may, during the Term, in the usual course of its business,
remove its Trade Fixtures, provided that the Tenant is not in default under this
lease;

(b)      the Tenant shall, at the expiration or earlier termination of the
Term, at its sole cost, remove its Trade Fixtures from the Premises, failing
which, at the option of the Landlord, the Trade Fixtures shall become the
property of the Landlord and may be removed from the Premises and sold or
disposed of by the Landlord in such manner as it deems advisable; and

(c)      The Tenant shall, at the expiration or earlier termination of the
Term, at its sole cost, either remove such of the Leasehold Improvements in the
Premises as the Landlord shall require to be removed and restore the Premises
to the condition that existed on October 1st, 1995, being the commencement of
the lease of Hemosol Inc., the previous tenant, including the removal of all
partitions (other than partitions in the front office with a low ceiling
located in the southerly portion of the Building and separated from the rest of
the office by a concrete block wall) to the extent required by the Landlord,
or, at the Landlord's option, pay to the Landlord the estimated cost of such
removal and restoration as determined by the Architect, acting reasonably, and
the Landlord shall utilize such payment by the Tenant for such removal and
restoration. If the Landlord requires the Tenant to perform such work, then:

         (i)      the Tenant shall, at its expense, repair any damage caused to
         the Building by such removal; and

         (ii)     if the Tenant fails to complete such work within 30 days
         following the expiry or earlier termination of the Term, the Tenant
         shall pay compensation to the Landlord for each day following such 30th
         day until completion of such work, at a rate equal to the per diem Rent
         payable during the last month preceding the expiry or earlier
         termination of the Term, which sum is agreed by the parties to be a
         reasonable estimate of the damages suffered by the Landlord for the
         loss of use of the Premises. The Tenant's obligation aforesaid shall
         also include the obligation of the Tenant to close off all electrical
         wiring which may have previously served any machinery or equipment
         installed by the Tenant in the Building.

4.04     Liens  The Tenant shall promptly pay for all materials supplied and
work done in respect of the Premises so as to ensure that no lien is registered
against any portion of the Lands or Building or against the Landlord's or
Tenant's interest therein. If a lien is registered or filed as a result of work
done by or for the Tenant or material supplied to or for the Tenant, the Tenant
shall cause all such registrations of any such claims or certificates of actions
related thereto to be discharged or vacated at its own expense within 5 days of
notice from the Landlord requiring it to do so, failing which the Landlord, in
addition to any other rights and remedies it may have hereunder, may, but shall
not be obligated to, cause such claims or certificates to be discharged or
vacated by payment into court of the appropriate amounts and the Tenant shall
forthwith pay to the Landlord such amounts, costs and expenses in respect
thereof. Nothing in Section 4.04 prevents the Tenant from contesting, in good
faith, and in accordance with the appropriate law, the amount or validity of
any claim by any worker of the Tenant as long as the Tenant discharges or
vacates such claim in the manner set out above.

4.05     Notice by Tenant  The Tenant shall notify the Landlord of any material
accident, defect, damage or deficiency in any part of the Premises which comes
to the attention of the Tenant, its employees or contractors notwithstanding
that the Landlord may have no obligation in respect thereof.
<PAGE>
                                     - 9 -

                                   ARTICLE V

                            INSURANCE AND INDEMNITY

5.01     Tenant's Insurance

(a)      The Tenant shall maintain the following insurance throughout the Term
at its sole cost;

         (i)      "All Risks" (including flood and earthquake) property
         insurance, naming the Tenant, the Landlord, the owners of the Lands and
         Building and the Mortgagee as additional insured parties, containing a
         waiver of any subrogation rights which the Tenant's insurers may have
         against the Landlord and against those for whom the Landlord is in law
         responsible (except a waiver of such subrogation rights where the
         Landlord or those for whom it is responsible have been wilfully
         negligent), and (except with respect to the Tenant's chattels)
         incorporating the Mortgagee's standard mortgage clause. Such insurance
         shall insure:

                  (aa)     property of every kind owned by the Tenant or for
                  which the Tenant is legally liable located on or in the
                  Building including, without limitation, Leasehold
                  Improvements, in an amount equal to not less than 90% of the
                  full replacement cost thereof, subject to a stated amount
                  co-insurance clause; and

                  (bb)     extra expense insurance in such amount as will
                  reimburse the Tenant for loss attributable to all risks
                  referred to in this Section 5.01(a)(i);

         (ii)     comprehensive general liability insurance of not less than
         $5,000,000 for each occurrence for bodily injury and property damage,
         personal injury liability, tenants legal liability and blanket
         contractual liability. Such policies shall provide for cross liability,
         and name the Landlord and the Mortgagee as additional insured;

         (iii)    Tenant's "all risks" legal liability insurance for the
         replacement cost value of the Building, which insurance shall have
         inclusive limits of not less than $2,000,000;

         (iv)     automobile liability insurance on a non-owned form including
         contractual liability, and on an owner's form covering all licensed
         vehicles operated by or on behalf of the Tenant; and

         (v)      any other form of insurance which the Tenant or the Landlord,
         acting reasonably, or the Mortgagee requires from time to time in form,
         in amounts and for risks against which a prudent tenant would insure.

(b)      All policies referred to in this Section 5.01 shall:

         (i)      be taken out with insurers reasonably acceptable to the
         Landlord;

         (ii)     be in a form reasonably satisfactory to the Landlord;

         (iii)    be non-contributing with, and shall apply only as primary and
         not as excess to, any other insurance available to the Landlord;

         (iv)     not be invalidated as respects the interest of the Landlord or
         the Mortgagee by reason of any breach of or violation of any warranty,
         representation, declaration or condition; and

         (v)      contain an undertaking by the insurers to notify the Landlord
         by registered mail not less than 30 days prior to any material change,
         cancellation or termination.

(c)      Certificates of insurance on the Landlord's standard form or, if
required by the Landlord, certified copies of such insurance policies, shall be
delivered to the Landlord forthwith upon request. If the Tenant fails to take
out or to keep in force any insurance referred to in this Section 5.01 or should
any such insurance not be approved by either the Landlord or the Mortgagee and
should the Tenant not commence to diligently rectify (and thereafter proceed to
diligently rectify) the situation within 48 hours, or such longer period as
permitted by the Landlord's insurer, after written notice by the Landlord to the
Tenant (stating, if the Landlord or the Mortgagee, from time to time, does not
approve of such insurance, the reasons therefor) the Landlord has the right
without assuming any obligation in connection therewith, to effect such
insurance at the sole cost of the Tenant and all outlays by the Landlord shall
be paid by the
<PAGE>
                                     - 10 -

Landlord shall be paid by the Tenant to the Landlord without prejudice to any
other rights or remedies of the Landlord under this lease.

(d)      If the Tenant fails to comply with any of the obligations in this
Article V, such failure shall constitute an event of default under this lease
and shall entitle the Landlord to the same rights and remedies available with
respect to any other default, including, without limitation, the right of
terminating this lease and re-entering the Premises, all without releasing the
Tenant from its obligations. The Landlord may, at its option, elect to comply
with such obligations at the cost and expense of the Tenant (including
Landlord's legal fees on a solicitor and his own client basis) and the Tenant
shall pay all such costs and expenses to the Landlord forthwith on demand.

5.02     Cancellation of Insurance  If any insurer under any insurance policy
covering any part of the Building or any occupant thereof cancels or threatens
to cancel its insurance policy or reduces or threatens to reduce coverage under
such policy by reason of the use of the Premises by the Tenant or by any
Transferee, or by anyone permitted by the Tenant to be upon the Premises, the
Tenant shall remedy such condition within 48 hours after notice thereof by the
Landlord.

5.03     Landlord's Property Insurance  The Landlord shall throughout the Term
carry:

(a)      insurance on the Building (excluding the foundations and excavations)
and machinery, boilers and equipment in or servicing the Building and owned by
the Landlord or the owners of the Building (excluding any property which the
Tenant is obliged to insure under Section 5.01) on an all risks of physical
loss or damage basis, naming the Tenant as additional insured, subject to the
Tenant's obligations to insure under Section 5.01; and

(b)      such other form or forms of insurance as the Landlord or the Mortgagee
reasonably considers advisable.

         Such insurance shall be in such reasonable amounts and with such
reasonable deductibles as would be carried by a prudent owner of a reasonably
similar building, having regard to size, age and location. Notwithstanding the
Landlord's covenant in this Section and notwithstanding any contribution by the
Tenant to the cost of the Landlord's insurance premiums, the Tenant acknowledges
and agrees that: (i) the Tenant is not relieved of any liability arising from or
contributed to by its negligence or its wilful act or omissions; (ii) no
insurable interest is conferred upon the Tenant under any insurance policies
carried by the Landlord; and (iii) the Tenant has no right to receive any
proceeds of any insurance policies carried by the Landlord.

                                   ARTICLE VI

                             DAMAGE AND DESTRUCTION

6.01     No Abatement  If the Building is damaged or destroyed in whole or in
part by fire or any other occurrence this lease shall continue in full force
and effect and there shall be no abatement of Rent except as provided in this
Article VI.

6.02     Damage to Building  If the Building is at any time destroyed or
damaged as a result of fire or any other casualty required to be insured
against by the Landlord or the Tenant, as the case may be, under this lease or
otherwise insured against by the Landlord or the Tenant, as the case may be,
and not caused or contributed to by the Tenant, then the following provisions
shall apply:

(a)      if the Building is rendered untenantable only in part, the Landlord
shall diligently repair the base Building, to the extent of insurance proceeds
received by the Landlord, and Rent shall abate proportionately to the portion
of the Building rendered untenantable from the date of destruction or damage
until the Landlord's repairs have been completed;

(b)      if the Building is rendered wholly untenantable, the Landlord shall
diligently repair the base Building, to the extent of insurance proceeds
received by the Landlord, and Rent shall abate entirely from the date of
destruction or damage until the Landlord's repairs have been completed;

(c)      if the Building is not rendered untenantable in whole or in part, the
Landlord shall diligently perform such repairs to the base Building, to the
extent of insurance proceeds received by the Landlord, but in such
circumstances Rent shall not terminate or abate;

(d)      upon being notified by the Landlord that the Landlord's repairs have
been substantially completed, the Tenant shall diligently perform all repairs
to the Building which are the Tenant's
<PAGE>
                                     - 11 -

responsibility under Article V, and all other work required to fully restore
the Building for use in the Tenant's business, in every case at the Tenant's
cost and without any contribution to such cost by the Landlord, whether or not
the Landlord has at any time made any contribution to the cost of supply,
installation or construction of Leasehold Improvements in the Building, and the
Landlord will advise the Tenant of the Landlord's construction schedule; and

(e)      nothing in this Section 6.02 shall require the Landlord to rebuild the
Building in the condition which existed before any such damage or destruction
so long as the Building as rebuilt will have reasonably similar facilities to
those in the Building prior to such damage or destruction, having regard,
however, to the age of the Building at such time.

6.03     Right of Termination  Notwithstanding Section 6.02, if the damage or
destruction which has occurred in the Building is such that in the reasonable
opinion of the Architect the Building cannot be rebuilt or made fit for the
purposes of the Tenant within 180 days of the happening of the damage or
destruction, the Landlord may, at its option, terminate this lease on notice to
the Tenant given within 30 days after such damage or destruction. If such
notice of termination is given, Rent shall be apportioned and paid to the date
of such damage or destruction and the Tenant shall immediately deliver vacant
possession of the Premises in accordance with the terms of this lease.

6.04     Architect's Certificate  The certificate of the Architect shall bind
the parties as to:

(a)      whether or not the Building is rendered untenantable and the
percentage of the Building rendered untenantable;

(b)      the date upon which either the Landlord's or Tenant's work of
reconstruction or repair is completed or substantially completed and the date
when the Building is rendered tenantable; and

(c)      the state of completion of any work of the Landlord or the Tenant.

6.05     Insurance Proceeds  The Landlord and the Tenant will each:

(a)      cause their respective insurance policies to provide that insurance
proceeds must be used for the rebuilding or repair of any damage or destruction
to the Building;

(b)      use their best efforts to cause the Mortgagee to release promptly any
insurance proceeds to the Landlord or the Tenant, as the case may be, so that
the Landlord or the Tenant, as the case may be, can promptly set about the
rebuilding or repair of the Building;

(c)      use their best efforts to collect the full proceeds of insurance from
their respective insurers; and

(d)      use the proceeds to promptly rebuild or repair the Building.

                                  ARTICLE VII

                      ASSIGNMENT SUBLETTING AND TRANSFERS

7.01     Assignments, Subleases and Transfers  The Tenant shall not enter into,
consent to or permit any Transfer without the prior written consent of the
Landlord in each instance, which consent may not be unreasonably withheld.
Notwithstanding the foregoing, the Tenant may sublet or enter into a sublease
solely in respect of the Building, or any part thereof, provided it obtains the
prior written consent of the Landlord in respect of any sublease, which consent
shall not be unreasonably withheld, and further provided that, without
limitation, the subtenant complies with Section 1.03 hereof. Notwithstanding
any statutory provision to the contrary, it shall not be considered
unreasonable for the Landlord to take into account whether in the Landlord's
opinion, the financial background, business history and capability of the
proposed Transferee is satisfactory. Consent by the Landlord to any Transfer if
granted shall not constitute a waiver of the necessity for such consent to any
subsequent Transfer. This prohibition against Transfer shall include a
prohibition against any Transfer by operation of law and no Transfer shall take
place by reason of the failure of the Landlord to give notice to the Tenant
within 30 days as required by Section 7.02.

7.02     Transfer Process  If the Tenant intends to effect a Transfer, the
Tenant shall give prior notice to the Landlord of such intent specifying the
identity of the Transferee, the type of Transfer contemplated, the portion of
the Premises affected thereby, and the financial and other terms of the
Transfer, and shall
<PAGE>
                                     - 12 -

provide such financial, business or other information relating to the proposed
Transferee and its principals as the Landlord, acting reasonably, or any
Mortgagee requires, together with copies of any documents which record the
particulars of the proposed Transfer. The Landlord shall, within 21 days after
having received such notice and all requested information, notify the Tenant
either that it consents or does not consent to the Transfer in accordance with
the provisions and qualifications of this Article VII.

7.03     Conditions of Transfer

(a)      If there is a permitted Transfer, the Landlord may collect rent from
the Transferee and apply the net amount collected to the Rent payable under
this lease but no acceptance by the Landlord of any payments by a Transferee
shall be deemed a waiver of the Tenant's covenants or any acceptance of the
Transferee as tenant or a release from the Tenant from the further performance
by the Tenant of its obligations under this lease. Any consent by the Landlord
shall be subject to the Tenant and Transferee executing an agreement with the
Landlord agreeing that the Transferee will be bound by all of the terms of this
lease and, except in the case of a sublease, that the Transferee will be so
bound as if it had originally executed this lease as tenant.

(b)      Notwithstanding any Transfer permitted or consented to by the
Landlord, the Tenant shall remain liable under this lease and shall not be
released from performing any of the terms of this lease.

(c)      The Landlord's consent to any Transfer shall be subject to the
condition that if the net rent and additional rent to be paid by the Transferee
under such Transfer exceeds the Net Rent and Additional Rent payable under this
lease, the amount of such excess shall be paid by the Tenant to the Landlord.
If the Tenant receives from any Transferee, either directly or indirectly, any
consideration other than net rent or additional rent for such Transfer, either
in the form of cash, goods or services (other than the proceeds of any
financing as the result of a Transfer involving a mortgage, charge or similar
security interest in this lease) the Tenant shall forthwith pay to the Landlord
an amount equivalent to such consideration. The Tenant and the Transferee shall
execute any agreement required by the Landlord to give effect to the foregoing
terms.

(d)      Notwithstanding the effective date of any permitted Transfer as
between the Tenant and the Transferee, all Net Rent and Additional Rent for the
month in which such effective date occurs shall be paid in advance by the
Tenant so that the Landlord will not be required to accept partial payments of
Net Rent and Additional Rent for such month from either the Tenant or
Transferee.

(e)      Any document evidencing any Transfer permitted by the Landlord, or
setting out any terms applicable to such Transfer or the rights and obligations
of the Tenant or Transferee thereunder, shall be prepared by the Tenant or its
solicitors in a form satisfactory to the Landlord and its solicitors and all
associated legal costs shall be paid by the Tenant.

(f)      The Tenant shall not be in default under this lease at the time it
requests the consent of the Landlord to any Transfer as herein provided.

7.04     Assignment by Landlord  The Landlord shall have the unrestricted right
to sell, lease, convey or otherwise dispose of all or any part of the Building
or Lands and this lease or any interest of the Landlord in this lease. To the
extent that the purchaser or assignee from the Landlord assumes the obligations
of the Landlord under this lease, the Landlord shall thereupon and without
further agreement be released from all liability under this lease.

7.05     "For Rent" Signs  The Landlord may within 4 months before the
expiration of the Term, unless the Term has been renewed, or within 3 months
before the expiration of the renewal term (if any) place on the Premises a
notice of reasonable dimensions stating that the Premises are for rent and the
Tenant shall not permit such notice to be removed.

                                  ARTICLE VIII

                                    DEFAULT

8.01     Default and Remedies

         If and whenever an Event of Default occurs, then without prejudice to
any other rights which it has pursuant to this lease or at law, the Landlord
shall have the following rights and remedies, which are cumulative and not
alternative:
<PAGE>
                                     - 13 -

(a)      to terminate this lease:

         (i)      10 days after written notice has been given to the Tenant of a
         financial default, which default has not been cured by the Tenant
         during such 10 day period; and

         (ii)     20 days after written notice has been given to the Tenant of a
         non-financial default, which default has not been cured by the Tenant
         during such 20 day period;

(b)      to enter the Premises as agent of the Tenant and to relet the Premises
for whatever term, and on such terms as the Landlord in its discretion may
determine and to receive the rent therefor and as agent of the Tenant to take
possession of any property of the Tenant on the Premises, to store such
property at the expense and risk of the Tenant or to sell or otherwise dispose
of such property in such manner as the Landlord may see fit without notice to
the Tenant; to make alterations to the Premises to facilitate their reletting;
and to apply the proceeds of any such sale or reletting first, to the payment
of any expenses incurred by the Landlord with respect to any such reletting or
sale; second, to the payment of any indebtedness of the Tenant to the Landlord
other than Rent; and third, to the payment of Rent in arrears; with the residue
to be held by the Landlord and applied in payment of future Rent as it becomes
due and payable. The Tenant shall remain liable for any deficiency to the
Landlord;

(c)      with prior written notice to the Tenant, to remedy or attempt to
remedy any default of the Tenant under this lease for the account of the Tenant
and to enter upon the Premises for such purposes. No notice of the Landlord's
intention to perform such covenants need be given the Tenant unless expressly
required by this lease. The Landlord shall not be liable to the Tenant for any
loss, injury or damage caused by acts of the Landlord in remedying or
attempting to remedy such default and the Tenant shall pay to the Landlord all
expenses incurred by the Landlord in connection with remedying or attempting to
remedy such default;

(d)      to recover from the Tenant all damages and expenses incurred by the
Landlord as a result of any breach by the Tenant including, if the Landlord
terminates this lease, any deficiency between those amounts which would have
been payable by the Tenant for the portion of the Term following such
termination and the net amounts actually received by the Landlord during such
period of time with respect to the Premises; and

(e)      to recover from the Tenant the full amount of the current month's Rent
together with the next 1 month's instalment of Rent, all of which shall accrue
on a day-to-day basis and shall immediately become due and payable as
accelerated rent.

8.02     Distress  Notwithstanding any provision of this lease or any provision
of applicable legislation, none of the goods and chattels of the Tenant on the
Premises at any time during the Term shall be exempt from levy by distress for
Rent in arrears, and the Tenant waives any such exemption. If the Landlord
makes any claim against the goods and chattels of the Tenant by way of
distress, this provision may be pleaded as an estoppel against the Tenant in
any action brought to test the right of the Landlord to levy such distress.

8.03     Costs  The Tenant shall pay to the Landlord all damages and reasonable
costs (including, without limitation, all legal fees on a solicitor and his
client basis) incurred by the Landlord in enforcing the terms of this lease, or
with respect to any matter or thing which is the obligation of the Tenant under
this lease, or in respect of which the Tenant has agreed to insure, or to
indemnify the Landlord.

8.04     Allocation of Payments  The Landlord may at its option apply sums
received from the Tenant against any amounts due and payable by the Tenant
under this lease in such manner as the Landlord sees fit.

8.05     Survival of Obligations  If the Tenant has failed to fulfil its
obligations under this lease with respect to the maintenance, repair an
alteration of the Building and the Premises and removal of improvements and
fixtures from the Building during or at the end of the Term, such obligations
and the Landlord's rights in respect thereto shall remain in full force and
effect notwithstanding the expiration or sooner termination of the Term.

<PAGE>
                                     - 14 -

                                   ARTICLE IX

                 STATUS STATEMENT ATTORNMENT AND SUBORDINATION

9.01     Status Statement  Within 10 days after written request by the
Landlord, the Tenant shall deliver in a form supplied by the Landlord a
statement or estoppel certificate to the Landlord as to the status of this
lease, including as to whether this lease is unmodified and in full force and
effect (or, if there have been modifications that this lease is in full force
and effect as modified and identifying the modification agreements); the amount
of Net Rent and Additional Rent then being paid and the dates to which same
have been paid; whether or not there is any existing or alleged default by
either party with respect to which a notice of default has been served and if
there is any such default, specifying the nature and extent thereof; and any
other matters pertaining to this lease as to which the Landlord shall request
such statement or certificate.

9.02     Subordination  This lease and all rights of the Tenant shall be
subject and subordinate to any and all Mortgages and any ground, operating,
overriding or underlying leases, from time to time in existence against the
Lands and Building. On request, the Tenant shall subordinate this lease and its
rights under this lease to any and all such Mortgages and leases and to all
advances made under such Mortgages. The form of such subordination shall be as
required by the Landlord or any Mortgagee or the lessee under any such lease.
The Landlord shall use its best efforts to obtain a non-disturbance agreement
in favour of the Tenant from any Mortgagee of any Mortgage.

9.03     Attornment  The Tenant shall promptly on request attorn to any
Mortgagee, the owners of the Building and Lands, or the purchaser on any
foreclosure or sale proceedings taken under any Mortgage, and shall recognize
such Mortgagee, owner, lessor or purchaser as the landlord under this lease.

                                   ARTICLE X

                             ENVIRONMENTAL MATTERS

10.01    Environmental Covenants

(a)      Promptly after it becomes aware of the same, the Tenant shall give
written notice to the Landlord of any deposit, release or spill of a
Contaminant on the Premises by the Tenant, or those for whom the Tenant is at
law responsible, during the Term which constitutes a violation of, or is
reportable under, any environmental laws or regulations.

(b)      If an event referred to in Section 10.01(a) occurs, the Tenant shall
promptly comply with all orders or requests from any environmental governmental
authority or agency, relating to the event and shall promptly remove any
Contaminant that has been deposited, released or spilled on the Premises to the
reasonable satisfaction of the Landlord, provided that such removal shall be in
accordance with environmental laws and regulations.

(c)      The Tenant shall promptly comply with all environmental laws and
regulations affecting the Premises and shall, promptly after it becomes aware
of the same, advise the Landlord in writing of any orders or claims issued to
the Tenant pursuant to any environmental laws or regulations by any
governmental authority or agency with respect to the environmental state or
condition of the Premises and the Tenant's compliance or non-compliance with
environmental laws and regulations and any statutory or civil proceedings
commenced against the Tenant pursuant to any environmental laws or regulations
in connection with the Premises.

(d)      The Tenant shall permit the Landlord at any time on reasonable notice
to the Tenant to inspect the Premises during the Term and to take such samples
and perform such tests as may be necessary to determine the presence of
Contaminants on the Premises and the compliance of the Premises with
environmental laws and regulations, provided that all such activities shall be
conducted so as to cause as minimal disruption to the Tenant's business as is
possible in the circumstances.

(e)      The Tenant shall indemnify and save harmless the Landlord from all
costs, expenses, fines, liabilities, obligations, judgments, suits, actions,
claims and proceedings of any and every nature and kind whatsoever suffered or
incurred by the Landlord which at any time or from time to time arise as a
result of the presence, release, spill or discharge of any Contaminant in, on,
under or from the Premises as a result of the business or activities of the
Tenant, or those for whom the Tenant is at law responsible, on the Premises
during the Term and which result in an obligation under any environmental laws
or regulations.
<PAGE>
                                     - 15 -

(f)      If the Tenant fails to comply with any of the obligations in this
Article X, such failure shall constitute an event of default under this lease
and shall entitle the Landlord to the same rights and remedies available with
respect to any other default, including, without limitation, the right of
terminating this lease and re-entering the Premises, all without releasing the
Tenant from its obligations. The Landlord may, at its option, elect to comply
with such obligations at the cost and expense of the Tenant (including
Landlord's legal fees on a solicitor and his own client basis) and the Tenant
shall pay all such costs and expenses to the Landlord forthwith on demand.

(g)      The covenants and agreements contained in this Article X shall survive
the expiry or earlier termination of this Lease.

                                   ARTICLE XI

                               GENERAL PROVISIONS

11.01    Delay  Except as expressly provided in this lease, whenever the
Landlord or Tenant is delayed in the fulfilment of any obligation under this
lease (other than the payment of Rent and surrender of the Premises on
termination) by an unavoidable occurrence which is not the fault of the party
delayed in performing such obligation, then the time for fulfilment of such
obligation shall be extended during the period in which such circumstances
operate to delay the fulfilment of such obligation.

11.02    Overholding  If the Tenant remains in possession of the Premises after
the end of the Term with the consent of the Landlord but without having
executed and delivered a new lease or an agreement extending the Term, there
shall be no tacit renewal of this lease, and the Tenant shall be deemed to be
occupying the Premises as a tenant from month to month at a monthly Net Rent
payable in advance on the first day of each month equal to one hundred and
fifty percent (150%) of the monthly amount of Net Rent payable during the last
month of the Term, and otherwise upon the same terms as are set forth in this
lease, so far as these are applicable to a monthly tenancy.

11.03    Waiver  If either the Landlord or Tenant excuses or condones any
default by the other of any obligation under this lease, no waiver of such
obligation shall be implied in respect of any continuing or subsequent default.

11.04    Registration  Neither the Tenant nor anyone claiming under the Tenant
shall register this lease or any Transfer without the prior written consent of
the Landlord. The Landlord and the Tenant agree that, forthwith after the
Commencement Date, the Tenant shall be entitled to cause to have prepared and
registered a short form of lease for the purposes of registration in such form
as approved by the Landlord and without disclosure of any terms which the
Landlord does not desire to have disclosed.

11.05    Notices  Any notice, consent or other instrument which may be or is
required to be given under this lease shall be in writing and shall be
delivered in person or sent by registered mail postage prepaid as follows:

(a)      if to the Landlord, at   36E Stoffel Drive, Toronto, Ontario M9W 1A8
                                  Attention:     Sergio Dalbo or Arrigo Rossi
                                  Facsimile No.  (416) 249-1457

(b)      if to the Tenant, at     the Premises
                                  Attention:     Vice-President Legal Affairs/
                                                 Corporate Secretary
                                  Facsimile No.  to be provided by Tenant
                                                 within 15 days of Commencement
                                                 Date

         Any such notice or other instrument shall be deemed to have been given
and received on the day upon which personal delivery is made or, if mailed,
then 48 hours following the date of mailing. Either party may give notice to
the other of any change of address and after the giving of such notice, the
address therein specified is deemed to be the address of such party for the
giving of notices. If postal service is interrupted or substantially delayed,
all notices or other instruments shall be delivered in person.

11.04    Successors  The rights and liabilities created by this lease extend to
and bind the successors and assigns of the Landlord and the heirs, executors,
administrators and permitted successors and assigns of the Tenant. No rights,
however, shall enure to the benefit of any Transferee unless the provisions of
Article VII are complied with.
<PAGE>
                                     - 16 -

11.07    Joint and Several Liability  If there is at any time more than one
Tenant or more than one Person constituting the Tenant, their covenant shall be
considered to be joint and several and shall apply to each and every one of
them. If the Tenant is or becomes a partnership, each Person who is a member,
or shall become a member, of such partnership or its successors shall be and
continue to be jointly and severally liable for the performance of all
covenants of the Tenant pursuant to this lease, whether or not such Person
ceases to be a member of such partnership or its successor.

11.08    Captions and Section Numbers  The captions, section numbers, article
numbers and table of contents appearing in this lease are inserted only as a
matter of convenience and in no way affect the substance of this lease.

11.09    Extended Meanings  The words "hereof", "hereto" and "hereunder" and
similar expressions used in this lease relate to the whole of this lease an not
only to the provisions in which such expressions appear. This lease shall be
read with all changes in number and gender as may be appropriate or required by
the context. Any reference to the Tenant includes, where the context allows,
the employees, agents, invitees and licensees of the Tenant and all others over
whom the Tenant might reasonably be expected to exercise control.

11.10    Partial Invalidity  All of the provisions of this lease are to be
construed as covenants even though not expressed as such. If any such provision
is held or rendered illegal or unenforceable it shall be considered separate
and severable from this lease and the remaining provisions of this lease shall
remain in force and bind the parties as though the illegal or unenforceable
provision had never been included in this lease.

11.11    Entire Agreement  This lease and the Schedules and riders, if any,
attached hereto set forth the entire agreement between the Landlord and Tenant
concerning the Premises and there are no agreements or understandings between
them other than as are herein set forth. This lease and its Schedules and riders
may not be modified except by agreement in writing executed by the Landlord and
Tenant.

11.12    Governing Law  This lease shall be construed in accordance with and
governed by the laws of the Province of Ontario.

11.13    Time of the Essence  Time is of the essence of this lease.

11.14    Quiet Enjoyment  If the Tenant pays Rent, fully performs all of its
obligations under this lease, and there has been no Event of Default, the Tenant
shall be entitled to peaceful and quiet enjoyment of the Premises for the Term
without interruption or interference by the Landlord or any Person claiming
through the Landlord.

11.15    Access by Landlord  The Landlord and its representatives shall, upon
24 hours prior written notice, be permitted to enter the Building and the Lands
for the purposes of doing any work which the Landlord may require or be
obligated to perform by this lease. Entry by the Landlord shall be restricted
to the normal business hours of the Tenant, except in cases of emergency, in
which case the Landlord shall not be required to give the Tenant any notice but
the Landlord shall attempt to give the Tenant as much notice as the
circumstances permit.

11.16    Adjustment  The Landlord and Tenant shall adjust between themselves on
the commencement and termination of this lease, all taxes, water rates,
insurance premiums and other charges relating to the Premises with the
intention that the Landlord shall bear such charges until commencement of this
lease and the Tenant shall bear such charges thereafter and until it delivers
possession of the Premises to the Landlord in accordance with the provisions of
this lease.

11.17    Impossibility of Performance  If either party shall be bona fide
delayed or hindered in or prevented from the performance of any term, covenant
or act required hereunder by reason of strikes, riots, insurrection, sabotage,
rebellion, war, act of God or other reason whether of a like nature or not,
which is not the fault of the party delayed in performing work or doing acts
required hereunder, then performance of such term, covenant or act shall be
excused for a period equivalent to the period of such delay. Notwithstanding
the foregoing, the Tenant shall not be excused from any obligation for the
prompt payment of Rent pursuant to this lease.

<PAGE>
                                     - 17 -

11.18    Option to Extend  Provided that there is not an Event of Default which
is continuing and the Tenant has given written notice to the Landlord at least
120 days prior to the expiration of the Term of its intention to exercise the
following option to extend, then the Tenant shall the right to extend the Term
on an "as is" basis for a further period of three (3) years and all of the
terms of this lease shall apply to such extension term, except that:

(a)      there shall be no further option to extend; and

(b)      during the extension term, the Tenant shall pay Net Rent to be agreed
upon in bona fide negotiations between the Landlord and the Tenant, provided
that the Net Rent for the extension term shall not be less than the Net Rent
payable during the last year of the Term. In the event that such Net Rent has
not been agreed upon by the parties at least 60 days prior to the expiration of
the Term, then this option to extend will be at an end.

11.20    Paramountcy  In the event of any conflict or inconsistency between the
terms of this lease and the terms of any other agreement, oral or written,
between the parties hereto in respect of the Premises, the terms of this lease
shall in any event prevail.

         IN WITNESS WHEREOF the Landlord and Tenant have executed this lease as
of the date first above written.

                                   565991 ONTARIO LIMITED

                                   By: /s/ Sergio Dalbo
                                       ---------------------------------
                                       Sergio Dalbo, President
                                   I have authority to bind the Corporation.

                                   LORUS THERAPEUTICS INC.

                                   By: /s/ James Parsons
                                       ---------------------------------
                                       Name/Title: James Parsons, VP Finance &
                                                   Administration & CFO

                                   By: /s/ Jim Wright
                                       ---------------------------------
                                       Name/Title: Dr. Jim Wright, President
                                   We have authority to bind the Corporation.
<PAGE>
                                  SCHEDULE "A"

                               LEGAL DESCRIPTION

All and Singular that certain parcel or tract of land and premises, situate,
lying and being in the City of Toronto (formerly in the City of Etobicoke), and
Province of Ontario, and being composed of part of Lot 20, Concession 3,
fronting the Humber in the said City, the boundaries of the said parcel of land
being more particularly described as follows:

PREMISING that the bearing herein are assumed and are referred to the bearing
North seventy-two (72) degrees, twenty-one (21) minutes, twenty (20) seconds
East of the North limit of Richview Road as established by By-law Number 3988
for the Borough of Etobicoke fronting Lot 17, Concession 2, fronting the Humber;

COMMENCING at an iron bar in the Northerly limit of Meridian Road as opened by
By-law Number 13947 for the Borough of Etobicoke, which said iron bar may be
located as follows:

BEGINNING at a cut stone monument marking the Northeasterly angle of the said
Lot 20;

THENCE South eighteen (18) degrees, eleven (11) minutes, forty (40) seconds
East along the Easterly limit of the said Lot 20 a distance of eight hundred
and forty-seven and forty-nine hundredths (847.49) feet to its intersection
with the said Northerly limit of Meridian Road;

THENCE South seventy-one (71) degrees, forty-eight (48) minutes, twenty (20)
seconds West along the last mentioned limit a distance of two hundred and five
(205.00) feet to the point of commencement;

THENCE South seventy-on (71) degrees, forty-eight (48) minutes, twenty (20)
seconds West

and continuing along the said Northerly limit of Meridian Road a
distance of one hundred and fifty and fifty-five hundredths (150.55) feet to
the beginning of a curve to the right;

THENCE on the said curve to the right having a radius of thirty (30.00) feet,
the chord of which has a bearing of North seventy-one (71) degrees, fifty-eight
(58) minutes, twenty (20) seconds West and a length of thirty-five and
forty-six hundredths (35.46) feet, an arc distance of thirty-seven and
ninety-three hundredths (37.93) feet to the end of the said curve;

THENCE North thirty-five (35) degrees, forty-five (45) minutes West along the
Easterly limit of Skyway Avenue as opened by the said By-Law Number 13947 a
distance of three hundred and ninety-seven and fifty-seven hundredths (397.57)
feet to an iron bar therein;

THENCE North seventy-one (71) degrees, forty-eight (48) minutes, twenty (20)
seconds East and parallel to the aforesaid Northerly limit of Meridian Road a
distance of two hundred and ninety-nine and Six hundredths (299.06) feet to an
iron bar;

THENCE South eighteen (18) degrees, eleven (11) minutes, forty (40) seconds
East and parallel to the said Easterly limit of Lot 20 a distance of four
hundred (400.00) feet more or less to the point of commencement;

The said parcel of land containing an area of two and one hundred and
sixty-three thousandths (2.163) acres, more or less.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]