Document:

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                                                                    EXHIBIT 10.6

                         SEVERANCE PROTECTION AGREEMENT

         THIS AGREEMENT made as of the first day of June 2000, by and between
PawnMart, Inc. (the "Company") and _______________(the "Executive").

         WHEREAS, the Board of Directors and the Executive desire to enter into
this Agreement to provide certain benefits to the Executive upon the termination
of employment of the Executive under certain conditions;

         WHEREAS, the Board of Directors of the Company (the "Board recognizes
that the possibility of a Change in Control (as hereinafter defined) exists and
that the threat or the occurrence of a Change in Control can result in
significant distraction of the Company's key management personnel because of the
uncertainties inherent in such a situation;

         WHEREAS, the Board has determined that it is essential and in the best
interest of the Company and its stockholders for the Company to retain the
services of the Executive in the event of a threat or occurrence of a Change in
Control and to ensure the Executive's continued dedication and efforts in such
event without undue concern for the Executive's personal financial and
employment security; and

         WHEREAS, in order to induce the Executive to remain in the employ of
the Company, particularly in the event of a threat or the occurrence of a Change
in Control, the Company desires to enter into this Agreement with the Executive
to provide the Executive with certain benefits in the event the Executive's
employment is terminated under certain conditions, including as a result of, or
in connection with, a Change in Control, and to provide the Executive with the
Gross-Up Payment (as hereinafter defined).

         NOW, THEREFORE, in consideration of the respective agreements of the
parties contained herein, it is agreed as follows:

         1. Term of Agreement. This Agreement shall commence as of June 1, 2000
and shall continue in effect through May 31, 2002 (the "Term"); provided,
however, that on June 1, 2002, and on each June 1 thereafter, the Term shall
automatically be extended for one (1) year unless either the Executive or the
Company shall have given written notice to the other at least ninety (90) days
prior thereto that the Term shall not be so extended; provided, further,
however, that following the occurrence of a Change in Control, the Term shall
not expire prior to the expiration of twenty-four (24) months after such
occurrence.

         2. Termination of Employment in Connection with a Change in Control.
If,

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during the Term, the Executive's employment with the Company shall be terminated
within twenty-four (24) months following a Change in Control, the Executive
shall be entitled to the following compensation and benefits:

         (a) If the Executive's employment with the Company shall be terminated
(1) by the Company for Cause or Disability, (2) by reason of the Executive's
death, or (3) by the Executive other than for Good Reason, the Company shall pay
to the Executive his or her Accrued Compensation. In addition to the foregoing,
if the Executive's employment is terminated by the Company for Disability or by
reason of the Executive's death, the Company shall pay to the Executive or his
or her beneficiaries a Pro Rata Bonus. The Executive's entitlement to any other
compensation or benefits shall be determined in accordance with the Company's
employee benefits plans and other applicable programs and practices then in
effect.

         (b) If the Executive's employment with the Company shall be terminated
for any reason other than as specified in Section 2(a), the Executive shall be
entitled to the following:

              (1) the Company shall pay the Executive all Accrued Compensation
and a Pro Rata Bonus;

              (2) the Company shall pay the Executive as severance pay and in
lieu of any further compensation for periods subsequent to the Termination Date
an amount determined by multiplying one-half times the sum of (i) the
Executive's Base Amount and (ii) the Executive's Bonus Amount; and

              (3) after the Termination Date and until the earlier of: six
months or the death of the Executive or the date upon which the Executive
becomes eligible for Medicare coverage (irrespective of whether the Executive
actually obtains such coverage), the Company shall continue to provide to the
Executive medical and dental coverage as provided to the Executive on the
Termination Date. The medical and dental coverage may be modified by the Company
at any time subsequent to the Termination Date as long as such modifications are
pursuant to, and to the same extent as, any modifications to the Company's
medical and dental insurance coverage provided to the Executive Officers in
office on the date of such modifications and such modifications do not result in
a substantial reduction of medical and dental benefits.

         (c) If (x) the Executive's employment is terminated by the Company
without Cause, or (y) the Executive terminates employment for Good Reason (1)
within six (6) months prior to a Change in Control, or (2) prior to the date of
a Change in Control but the

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Executive reasonably demonstrates that such (x) termination or event or
condition (A) was at the request of a third party who has indicated an intention
or taken steps reasonably calculated to effect a Change in Control (a "Third
Party") and who effectuates a Change in Control or (13) otherwise arose in
connection with, or in anticipation of a Change in Control which has been
threatened or proposed and which actually occurs, such termination shall be
deemed to have occurred after a Change in Control, provided a Change in Control
shall actually have occurred.

         (d) (I) Gross-Up Payment. In the event it shall be determined that any
payment or distribution of any type to or for the benefit of the Executive, by
the Company, any Affiliate, any Person who acquires ownership or effective
control of the Company or ownership of a substantial portion of the Company's
assets (within the meaning of Section 2800 of the Internal Revenue Code of 1986,
as amended (the "Code"), and the regulations there under) or any affiliate of
such Person, whether paid or payable or distributed or distributable pursuant to
any of the terms of this Agreement or otherwise (the "Total Payments"), is or
will be subject to the excise tax imposed by Section 4999 of the Code or any
interest or penalties with respect to such excise tax (such excise tax, together
with any such interest and penalties, are collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including any income tax, employment tax or Excise Tax, imposed
upon the Gross Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Total Payments.

              (2) Determination By Accountant. All mathematical determinations,
and all determinations as to whether any of the Total Payments are "parachute
payments" (within the meaning of Section 2800 of the Code), that are required to
be made under this Section 2(d), including determinations as to whether a
Gross-Up Payment is required, the amount of such Gross-Up Payment and amounts
relevant to the last sentence of this Section 2(d)(2), shall be made by an
independent accounting firm selected by the Executive from among the six (6)
largest accounting firms in the United States (the "Accounting Firm"), which
shall provide its determination (the "Determination"), together with detailed
supporting calculations regarding the amount of any Gross-Up Payment and any
other relevant matter, both to the Company and the Executive by no later than
ten (10) days following the Termination Date, if applicable, or such earlier
time as is requested by the Company or the Executive (if the Executive
reasonably believes that any of the Total Payments may be subject to the Excise
Tax). If the Accounting Firm determines that no Excise Tax is payable by the
Executive, it shall furnish the Executive and the Company with a written
statement that such Accounting Firm has concluded that no Excise Tax is payable
(including the reason therefore) and that the Executive has substantial
authority not to report any Excise Tax on his or her

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federal income tax return. If a Gross-Up Payment is determined to be payable, it
shall be paid to the Executive within twenty (20) days after the Determination
(and all accompanying calculations and other material supporting the
Determination) is delivered to the Company by the Accounting Firm. Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive, absent manifest error. As a result of uncertainty in the application
of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments not made by the
Company should have been made ("Underpayment"), or that Gross-Up Payments will
have been made by the Company which should not have been made ("Overpayments").
In either such event, the Accounting Firm shall determine the amount of the
Underpayment or Overpayment that has occurred. In the case of an Underpayment,
the amount of such Underpayment shall be promptly paid by the Company to or for
the benefit of the Executive. In the case of an Overpayment, the Executive
shall, at the direction and expense of the Company, take such steps as is
reasonably necessary (including the filing of returns and claims for refund),
Now reasonable instructions from, and procedures established by, the Company,
and otherwise reasonably cooperate with the Company to correct such Overpayment,
provided however, that (i) the Executive shall not in any event be obligated to
return to the Company an amount greater than the net after-tax portion of the
Overpayment that he or she has retained or has recovered as a refund from the
applicable taxing authorities and (ii) this provision shall be interpreted in a
manner consistent with the intent of Section 2(d)(l), which is to make the
Executive whole, on an after-tax basis, from the application of the Excise Tax,
it being understood that the correction of an Overpayment may result in the
Executive repaying to the Company an amount which is less than the Overpayment.

              (e) The amounts provided for in Sections 2(a) and 2(b)(l) and (2),
shall be paid in a single lump sum cash payment within thirty (30) days after
the Executive's Termination Date (or earlier, if required by applicable law).

              (f) The Executive shall not be required to mitigate the amount of
any payment provided for in this Agreement by seeking other employment or
otherwise and no such payment shall be offset or reduced by the amount of any
compensation or benefits provided to the Executive in any subsequent employment.

              (g) The payments and benefits provided for in this Section 2 shall
be in lieu of any other severance pay to which the Executive may be entitled
under any Company severance plan or any other plan, agreement or arrangement of
the Company.

         3. Notice of Termination. Any intended termination of the Executive's
employment by the Company shall be communicated by a Notice of Termination from
the Company to the Executive, and any intended termination of the Executive's
employment by

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the Executive for Good Reason shall be communicated by a Notice of Termination
from the Executive to the Company.

         4. Non-Solicitation. The Executive agrees that if his employment with
the Company terminates, he will not, without the prior written consent of the
Company, for a period of twelve (12) months thereafter, alone or with or for
others, in whatever, capacity, directly or indirectly, solicit or attempt to
solicit clients or customers of the Company, or solicit or attempt to solicit
employees of the Company to leave the Company's employ.

         5. Fees and Expenses. The Company shall pay all legal fees and related
expenses (including the costs of experts, evidence and counsel) incurred by the
Executive as they become due as a result of (a) the termination of the
Executive's employment by the Company or by the Executive for Good Reason
(including all such fees and expenses, if any, incurred in contesting, defending
or disputing the basis for any such termination of employment), (b) the
Executive's hearing before the Board as contemplated in Section 16.5 of this
Agreement or (c) the Executive seeking to obtain or enforce any right or benefit
provided by this Agreement or by any other plan or arrangement maintained by the
Company under which the Executive is or may be entitled to receive benefits.

         6. Notice. For the purposes of this Agreement, notices and all other
communications provided for in the Agreement (including any Notice of
Termination) shall be in writing, shall be signed by the Executive if to the
Company or by a duly authorized officer of the Company if to the Executive, and
shall be deemed to have been duly given when personally delivered or sent by
certified mail, return receipt requested, postage prepaid, addressed to the
respective addresses last given by each party to the other, provided that all
notices to the Company shall be directed to the attention of the Board with a
copy to the Secretary of the Company. All notices and communication shall be
deemed to have been received on the date of delivery thereof or on the third
business day after the mailing thereof, except that notice of change of address
shall be effective only upon receipt.

         7. Nature of Rights. The Executive shall have the status of a mere
unsecured creditor of the Company with respect to his or her right to receive
any payment under this Agreement. This Agreement shall constitute a mere promise
by the Company to make payments in the future of the benefits provided for
herein. It is the intention of the parties hereto that the arrangements
reflected in this Agreement shall be treated as unfunded for tax purposes and,
if it should be determined that Title I of ERISA is applicable to this
Agreement, for purposes of Title I of ERISA. Except as provided in Section 2(g),
nothing in this Agreement shall prevent or limit the Executive's continuing or
future participation in any benefit, bonus, incentive or other plan or program
provided by the Company and for which the Executive may qualify, nor shall
anything herein limit or reduce such rights as the

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Executive may have under any other agreements with the Company. Amounts which
are vested benefits or which the Executive is otherwise entitled to receive
under any plan or program of the Company shall be payable in accordance with
such plan or program, except as explicitly modified by this Agreement.

         8. Settlement of Claims. The Company's obligation to make the payments
provided for m fills Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, defense, recoupment, or other right which
the Company may have against the Executive or others.

         9. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and the Company. No waiver by any party
hereto at any time of any breach by any other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time. No agreement or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by any party which are not expressly set forth in this Agreement.

         10. Survival. The provisions in Section 4 of this Agreement shall
survive the expiration of this Agreement.

         11. Successors: Binding Agreement.

              (a) This Agreement shall be binding upon and shall inure to the
benefit of the Company and its Successors and Assigns. The Company shall require
its Successors and Assigns to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession or assignment had taken place.

              b) Neither this Agreement nor any right or interest hereunder
shall be assignable or transferable by the Executive, his or her beneficiaries
or legal representatives, except by will or by the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by
the Executive's legal personal representative.

         12. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Texas without giving
effect to the conflict of laws principles thereof. Any action brought by any
party to this Agreement shall

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be brought and maintained in a court of competent jurisdiction in Tarrant County
in the State of Texas.

         13. Severability. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.

         14. Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto, and supersedes all prior agreements, understandings
and arrangements, oral or written, between the parties hereto, with respect to
the subject matter hereof.

         15. Release. The Executive agrees that payment hereunder is conditioned
upon the execution of a release ("General Release") in the form attached hereto.

         16. Definitions.

              16.1. Accrued Compensation. For purposes of this Agreement,
"Accrued Compensation" shall mean all amounts of compensation for services
rendered to the Company that have been earned or accrued through the Termination
Date but that have not been paid as of the Termination Date including (a) base
salary, (b) reimbursement for reasonable and necessary business expenses
incurred by the Executive on behalf of the Company during the period ending on
the Termination Date, (c) vacation pay and (d) bonuses and incentive
compensation; provided, however, that Accrued Compensation shall not include any
amounts described in clause (a) or clause (d) that have been deferred pursuant
to any salary reduction or deferred compensation elections made by the
Executive.

              16.2. Affiliate. For purposes of this Agreement, "Affiliate" means
any entity, directly or indirectly, controlled by, controlling or under common
control with the Company or any corporation or other entity acquiring, directly
or indirectly, all or substantially all the assets and business of the Company,
whether by operation of law or otherwise.

              16.3. Base Amount. For purposes of this Agreement, "Base Amount"
shall mean the Executive's base salary in effect on June 1, 2000, or, if
greater, (b) in effect at any time thereafter.

              16.4. Bonus Amount. For purposes of this Agreement, "Bonus Amount"
shall mean the greater of (a) the target annual bonus payable to the Executive
in respect of the fiscal year during which the Termination Date occurs or b,)
the highest annual bonus paid or payable in respect of any of the three full
fiscal years ended prior to the Termination Date or,

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if greater, the three (3) full fiscal years ended prior to the Change in
Control.

              16.5. Cause. For purposes of this Agreement, a termination of
employment is for "Cause" if the Executive has been convicted of a felony or the
termination is evidenced by a resolution adopted in good faith by two-thirds of
the Board that the Executive:

              (a) intentionally and continually failed substantially to perform
his or her reasonably assigned duties with the Company (other than a failure
resulting from the Executive's incapacity due to physical or mental illness or
from the assignment to the Executive of duties that would constitute Good
Reason) which failure continued for a period of at least thirty (30) days after
a written notice of demand for substantial performance, signed by a duly
authorized officer of the Company, has been delivered to the Executive
specifying the manner in which the Executive has failed substantially to
perform, or

              b) intentionally engaged in conduct which is demonstrably and
materially injurious to the Company; provided, however, that no termination of
the Executive's employment shall be for Cause as set forth in this Section
16.5(b) until (1) there shall have been delivered to the Executive a copy of a
written notice, signed by a duly authorized officer of the Company, setting
forth that the Executive was guilty of the conduct set forth in this Section
16.5(b) and specifying the particulars thereof in detail, and (2) the Executive
shall have been provided an opportunity to be heard in person by the Board (with
the assistance of the Executive's counsel if the Executive so desires).

              No act, nor failure to act, on the Executive's part, shall be
considered "intentional" unless the Executive has acted, or failed to act, with
a lack of good faith and with a lack of reasonable belief that the Executive's
action or failure to act was in the best interest of the Company.
Notwithstanding anything contained in this Agreement to the contrary, no failure
to perform by the Executive after a Notice of Termination is given to the
Company by the Executive shall constitute Cause for purposes of this Agreement.

              16.6. Change in Control. A "Change in Control" shall mean the
occurrence during the term of the Agreement of:

              (a) An acquisition (other than directly from the Company) of any
common stock of the Company ("Common Stock") or other voting securities of the
Company entitled to vote generally for the election of directors (the "Voting
Securities") by any "Person' (as the term person is used for purposes of Section
13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act")), immediately after which such Person has "Beneficial Ownership" (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent
(20%) or more of the then outstanding shares of Common Stock or the

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combined voting power of the Company's then outstanding Voting Securities;
provided, however, in determining whether a Change in Control has occurred,
Voting Securities which are acquired in a Non-Control Acquisition (as
hereinafter defined) shall not constitute an acquisition which would cause a
Change in Control. A "Non-Control Acquisition" shall mean an acquisition by (i)
a Company employee benefit plan (or a trust forming a part thereof) maintained
by (A) the Company or (B) any corporation or other Person of which a majority of
its voting power or its voting equity securities or equity interest is owned,
directly or indirectly, by the Company (a "Subsidiary"), (ii) the Company or its
Subsidiaries, or (iii) any Person in connection with a Non-Control Transaction
(as hereinafter defined);

              (b) The individuals who, as of the date hereof; are members of the
Board (the "Incumbent Board"), cease for any reason to constitute at least
seventy percent (70%) of the members of the Board, provided, however, that if
the election, or nomination for election by the Company's shareholders, of any
new director was approved by a vote of at least two-thirds of the Incumbent
Board, such new director shall, for purposes of this Agreement, be considered as
a member of the Incumbent Board; provided further however, that no individual
shall be considered a member of the Incumbent Board if such individual initially
assumed office as a result of either an actual or threatened "Election Contest"
(as described in Rule 14a-l I promulgated under the Exchange Act) or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board (a "Proxy Contest") including by reason of any
agreement intended to avoid or settle any Election Contest or Proxy Contest; or

              (c) The consummation of

                  (1) A merger, consolidation or reorganization with or into the
Company or in which securities of the Company are issued, unless such merger,
consolidation or reorganization is a "Non-Control Transaction." A "Non-Control
Transaction" shall mean a merger, consolidation or reorganization with or into
the Company or in which securities of the Company are issued where:

                    (A) the shareholders of the Company, immediately before such
merger, consolidation or reorganization, own directly or indirectly immediately
following such merger, consolidation or reorganization, at least sixty percent
(60%) of the combined voting power of the outstanding voting securities of the
corporation resulting from such merger or consolidation or reorganization (the
"Surviving Corporation") in substantially the same proportion as their ownership
of the Voting Securities immediately before such merger, consolidation or
reorganization,

                    (13) the individuals who were members of the Incumbent Board

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immediately prior to the execution of the agreement providing for such merger,
consolidation or reorganization constitute at least seventy percent (70%) of the
members of the board of directors of the Surviving Company; or Corporation, or a
corporation beneficially directly or indirectly owning a majority of the Voting
Securities of the Surviving Corporation, and

                    (C) no Person other than (i) the Company, (ii) any
Subsidiary, (iii) any employee benefit plan (or any trust forming a part
thereof) that, immediately prior to such merger, consolidation or
reorganization, was maintained by the Company, the Surviving Corporation, or any
Subsidiary, or (iv) any Person who, immediately prior to such merger,
consolidation or reorganization had Beneficial Ownership of twenty percent (20%)
or more of the then outstanding Voting Securities or common stock of the
Company, has Beneficial Ownership of twenty percent (20%) or more of the
combined voting power of the Surviving Corporation's then outstanding voting
securities or its common stock.

                  (2) A complete liquidation or dissolution of the Company; or

                  (3) The sale or other disposition of all or substantially all
of the assets of the Company to any Person (other than a transfer to a
Subsidiary).

                  Notwithstanding the foregoing, a Change in Control shall not
be deemed to occur solely because any Person (the "Subject Person") acquired
Beneficial Ownership of more than the permitted amount of the then outstanding
common stock or Voting Securities as a result of the acquisition of Common Stock
or Voting Securities by the Company which, by reducing the number of shares of
Common Stock or Voting Securities then outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Person, provided that if a
Change in Control would occur (but for the operation of this sentence) as a
result of the acquisition of shares of Common Stock or Voting Securities by the
Company, and after such share acquisition by the Company, the Subject Person
becomes the Beneficial Owner of any additional shares of Common Stock or Voting
Securities which increases the percentage of the then outstanding shares of
Common Stock or Voting Securities Beneficially Owned by the Subject Person, then
a Change in Control shall occur.

              16.7. Company. For purposes of this Agreement, all references to
the Company shall include its Successors and Assigns.

              16.8. Disability. For purposes of this Agreement, "Disability"
shall mean a physical or mental infirmity which impairs the Executive's ability
to substantially perform his or her duties with the Company for six (6)
consecutive months, and within the time

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period set forth in a Notice of Termination given to the Executive (which time
period shall not be less than thirty (30) days), the Executive shall not have
returned to full-time performance of his or her duties.

              16.9. Good Reason. For purposes of this Agreement, "Good Reason"
shall mean the occurrence of any of the following events or conditions,
provided, however, that a termination for Good Reason shall only be effective if
the Executive provides the Company with at least thirty (30) days' written
Notice of Termination describing the circumstances giving rise to his possible
termination for Good Reason and the Company fails to cure such circumstances
within those thirty (30) days:

                  (1) a change in the Executive's status, title, position or
responsibilities (including reporting responsibilities) which represents an
adverse change from his or her status, title, position or responsibilities as in
effect immediately prior thereto; the assignment to the Executive of any duties
or responsibilities which are inconsistent with his status, title, position or
responsibilities; or any removal of the Executive from or failure to reappoint
or reelect him or her to any of such offices or positions, except in connection
with the termination of his employment for Disability, Cause, as a result of his
or her death or by the Executive other than for Good Reason;

                  (2) a reduction in the Executive's annual base salary below
the Base Amount;

                  (3) the failure by the Company to pay to the Executive any
portion of the Executive's current compensation or to pay to the Executive any
portion of an installment of deferred compensation under any deferred
compensation program of the Company in which the Executive participated, within
seven (7) days of the date such compensation is due;

                  (4) the failure by the Company (A) to continue in effect
(without reduction in benefit level, and/or reward opportunities) any material
compensation or employee benefit plan in which the Executive was participating
on September 1, 1998, including, but not limited to, any of the plans listed in
Appendix A hereto, unless a substitute or replacement plan has been implemented
which provides substantially identical compensation or benefits to the
Executive; provided, however, that if such material compensation or employee
benefit plans are increased at any time after September 1, 1998, then the
failure to continue those greater material compensation or employee benefit
plans will constitute Good Reason; or (B) to provide the Executive with
compensation and benefits, which in the aggregate, are at least equal (in terms
of benefit levels and/or reward opportunities) to those provided for under each
other compensation or employee benefit plan, program and practice in which the
Executive was participating on September 1, 1998; provided, however, that if the
aggregate compensation and benefits provided for under each other compensation
or

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employee benefit plan, program and practice in which the Executive participates
at any time after September 1, 1998 are increased after September 1, 1998, then
the failure to provide the Executive with such aggregate greater compensation
and benefits shall constitute Good Reason;

                  (5) the failure of the Company to obtain from its Successors
or Assigns the express assumption and agreement required under Section E 2
hereof; or

                  (6) any purported termination of the Executive's employment by
the Company which is not effected pursuant to a Notice of Termination satisfying
the terms set forth in the definition of Notice of Termination (and, if
applicable, the terms set forth in the definition of Cause).

              16.10. Notice of Termination. For purposes of this Agreement,
"Notice of Termination" shall mean a written notice of termination of the
Executive's employment, signed by the Executive if to the Company or by a duly
authorized officer of the Company if to the Executive, which indicates the
specific termination provision in this Agreement, if any, relied upon and which
sets forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive's employment under the provision so
indicated.

              16.11. Pro Rata Bonus. For purposes of this Agreement, "Pro Rata
Bonus" shall mean an amount equal to the Bonus Amount multiplied by a fraction
the numerator of which is the number of days in such fiscal year through the
Termination Date and the denominator of which is 365.

              16.12. Successors and Assigns. For purposes of this Agreement,
"Successors and Assigns" shall mean, with respect to the Company, a corporation
or other entity acquiring all or substantially all the assets and business of
the Company, as the case may be (including this Agreement), whether by operation
of law or otherwise.

              16.13. Termination Date. For purposes of this Agreement,
"Termination Date" shall mean (a) in the case of the Executive's death, his or
her date of death, (1,) if the Executive's employment is terminated for
Disability, thirty (30) days after Notice of Termination is given (provided that
the Executive shall not have returned to the performance of his or her duties on
a fill-time basis during such thirty (30) day period) and (c) if the Executive's
employment is terminated for any other reason, the date specified in the Notice
of Termination (which, in the case of a termination for Cause shall not be less
than thirty (30) days, and in the case of a termination for Good Reason shall
not be more than sixty (60) days, from the date such Notice of Termination is
given); provided, however, that if within

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thirty (30) days after any Notice of Termination is given the party receiving
such Notice of Termination in good faith notifies the other party that a dispute
exists concerning the basis for the termination, the Termination Date shall be
the date on which the dispute is finally determined, either by mutual written
agreement of the parties, or by the final judgment, order or decree of a court
of competent jurisdiction (the time for appeal therefore having expired and no
appeal having been taken). Notwithstanding the pendency of any such dispute, the
Company shall continue to pay the Executive his or her Base Amount and continue
the Executive as a participant in all compensation, incentive, bonus, pension,
profit sharing, medical, hospitalization, dental, life insurance and disability
benefit plans in which he or she was participating when the notice giving rise
to the dispute was given, until the dispute is finally resolved in accordance
with this Section whether or not the dispute is resolved in favor of the
Company, and the Executive shall not be obligated to repay to the Company any
amounts paid or benefits provided pursuant to this sentence.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its duly authorized officers and the Executive has executed this
Agreement as of the day and year first above written.

                               PawnMart, Inc.

                               By:_______________________________
                               Name: Carson R. Thompson
                               Title: Chairman and Chief Executive Officer

                               By:_______________________________<PAGE>   1

                                                                     EXHIBIT 4.1

                                 TRUST AGREEMENT

                            Dated as of June 1, 2000

                                     between

                        ARCADIA RECEIVABLES FINANCE CORP.

                                       and

                            WILMINGTON TRUST COMPANY
                                  Owner Trustee

                 ASSOCIATES AUTOMOBILE RECEIVABLES TRUST 2000-1

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----

<S>                 <C>                                                                                        <C>
ARTICLE I           DEFINITIONS...................................................................................1
         SECTION 1.1.          Definitions........................................................................1
         SECTION 1.2.          Usage of Terms.....................................................................3
         SECTION 1.3.          Section References.................................................................4
         SECTION 1.4.          Action by or Consent of Certificateholders.........................................4

ARTICLE II          CREATION OF TRUST.............................................................................4
         SECTION 2.1.          Creation of Trust..................................................................4
         SECTION 2.2.          Office.............................................................................4
         SECTION 2.3.          Purposes and Powers................................................................4
         SECTION 2.4.          Appointment of Owner Trustee.......................................................5
         SECTION 2.5.          Initial Capital Contribution of Trust Estate.......................................5
         SECTION 2.6.          Declaration of Trust...............................................................5
         SECTION 2.7.          Liability of the Certificateholders................................................6
         SECTION 2.8.          Title to Trust Property............................................................6
         SECTION 2.9.          Situs of Trust.....................................................................6
         SECTION 2.10.         Representations and Warranties of the Depositor....................................6
         SECTION 2.11.         Federal Income Tax Treatment.......................................................7
         SECTION 2.12.         Covenants of the Certificateholders................................................8

ARTICLE III         THE CERTIFICATES..............................................................................9
         SECTION 3.1.          Initial Ownership..................................................................9
         SECTION 3.2.          The Certificates...................................................................9
         SECTION 3.3.          Authentication of Certificates.....................................................9
         SECTION 3.4.          Registration of Transfer and Exchange of Certificates.............................10
         SECTION 3.5.          Mutilated, Destroyed, Lost or Stolen Certificates.................................12
         SECTION 3.6.          Persons Deemed Owners.............................................................12
         SECTION 3.7.          Access to List of Certificateholders' Names and Addresses.........................12
         SECTION 3.8.          Maintenance of Office or Agency...................................................13
         SECTION 3.9.          Appointment of Paying Agent.......................................................13

ARTICLE IV          ACTIONS BY OWNER TRUSTEE.....................................................................13
         SECTION 4.1.          Restriction on Power of Certificateholders........................................13
         SECTION 4.2.          Prior Notice to Certificateholders with Respect to Certain Matters................13
         SECTION 4.3.          Action by Certificateholders with Respect to Bankruptcy...........................14
         SECTION 4.4.          Restrictions on Certificateholders' Power.........................................14

ARTICLE V           APPLICATION OF TRUST FUNDS; CERTAIN DUTIES...................................................15
</TABLE>

                                      -i-
<PAGE>   3

<TABLE>
<S>                  <C>                                                                                         <C>
         SECTION 5.1.          Trust Accounts....................................................................15
         SECTION 5.2.          Application of Funds in Certificate Distribution Account..........................16
         SECTION 5.3.          Method of Payment.................................................................17
         SECTION 5.4.          No Segregation of Monies; No Interest.............................................17
         SECTION 5.5.          Accounting; Reports; Tax Returns..................................................17

ARTICLE VI          AUTHORITY AND DUTIES OF OWNER TRUSTEE........................................................18
         SECTION 6.1.          General Authority.................................................................18
         SECTION 6.2.          General Duties....................................................................18
         SECTION 6.3.          Action upon Instruction...........................................................19
         SECTION 6.4.          No Duties Except as Specified in this Agreement or
                               in Instructions...................................................................20
         SECTION 6.5.          No Action Except under Specified Documents or Instructions........................21
         SECTION 6.6.          Restrictions......................................................................21
         SECTION 6.7.          Administration Agreement..........................................................21

ARTICLE VII         CONCERNING THE OWNER TRUSTEE.................................................................22
         SECTION 7.1.          Acceptance of Trustee and Duties..................................................22
         SECTION 7.2.          Furnishing of Documents...........................................................23
         SECTION 7.3.          Representations and Warranties....................................................23
         SECTION 7.4.          Reliance; Advice of Counsel.......................................................24
         SECTION 7.5.          Not Acting in Individual Capacity.................................................24
         SECTION 7.6.          Owner Trustee Not Liable for Certificates, Notes or Receivables...................24
         SECTION 7.7.          Owner Trustee May Own Certificates and Notes......................................25

ARTICLE VIII        COMPENSATION OF OWNER TRUSTEE................................................................25
         SECTION 8.1.          Owner Trustee's Fees and Expenses.................................................25
         SECTION 8.2.          Indemnification...................................................................25
         SECTION 8.3.          Non-recourse Obligations..........................................................26

ARTICLE IX          TERMINATION..................................................................................26
         SECTION 9.1.          Termination of the Trust..........................................................26

ARTICLE X           SUCCESSOR OWNER TRUSTEES AND ADDITIONAL
                    OWNER TRUSTEES...............................................................................28
         SECTION 10.1.         Eligibility Requirements for Owner Trustee........................................28
         SECTION 10.2.         Resignation or Removal of Owner Trustee...........................................28
         SECTION 10.3.         Successor Owner Trustee...........................................................29
         SECTION 10.4.         Merger or Consolidation of Owner Trustee..........................................29
         SECTION 10.5.         Appointment of Co-Trustee or Separate Trustee.....................................29

ARTICLE XI          MISCELLANEOUS PROVISIONS.....................................................................31
         SECTION 11.1.         Amendment.........................................................................31
</TABLE>

                                      -ii-
<PAGE>   4

<TABLE>
<S>                  <C>                                                                                         <C>
         SECTION 11.2.         No Recourse.......................................................................32
         SECTION 11.3.         No Petition.......................................................................32
         SECTION 11.4.         Governing Law.....................................................................32
         SECTION 11.5.         Severability of Provisions........................................................32
         SECTION 11.6.         Certificates Nonassessable and Fully Paid.........................................32
         SECTION 11.7.         Third-Party Beneficiaries.........................................................33
         SECTION 11.8.         Counterparts......................................................................33
         SECTION 11.9.         Notices...........................................................................33

Exhibit A     --    Form of Certificate of Trust........................................................        A-1

Exhibit B     --    Form of Certificate.................................................................        B-1

Exhibit C     --    Form of Representation Letter.......................................................        C-1
</TABLE>

                                     - iii -
<PAGE>   5

                  THIS TRUST AGREEMENT, dated as of June 1, 2000, is made
between Arcadia Receivables Finance Corp., a Delaware corporation (the
"Seller"), and Wilmington Trust Company, a Delaware banking corporation, as
Owner Trustee (in such capacity, the "Owner Trustee").

                  In consideration of the mutual agreements herein contained,
and of other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.1. Definitions. All terms defined in the Sale and
Servicing Agreement (defined below) shall have the same meaning in this
Agreement. Whenever capitalized and used in this Agreement, the following words
and phrases, unless otherwise specified, shall have the following meanings:

                  Administration Agreement: The Administration Agreement, dated
as of June 22, 2000, between the Administrator and the Trust, as the same may be
amended and supplemented from time to time.

                  Administrator: Wilmington Trust Company, a Delaware banking
corporation, or any successor Administrator under the Administration Agreement.

                  AFL: Arcadia Financial Ltd., a Minnesota corporation, and its
successors in interest.

                  Agreement or "this Agreement": This Trust Agreement, all
amendments and supplements hereto and all exhibits and schedules to any of the
foregoing.

                  Authentication Agent: Wilmington Trust Company, or its
successor in interest, and any successor authentication agent appointed as
provided in this Agreement.

                  Business Trust Statute: Chapter 38 of Title 12 of the Delaware
Code, 12 Del. Code Section 3801 et seq., as the same may be amended from time to
time.

                  Certificate: A certificate executed by the Owner Trustee on
behalf of the Trust evidencing a fractional undivided interest in the Trust,
substantially in the form attached hereto as Exhibit B.

                  Certificate Distribution Account: The account designated as
the Certificate Distribution Account in, and which is established and maintained
pursuant to, Section 5.1.

<PAGE>   6

                  Certificate Majority: Holders of Certificates representing
more than 50% of the interests of the Certificateholders as a whole.

                  Certificate of Trust: The Certificate of Trust in the form of
Exhibit A hereto filed for the Trust pursuant to Section 3810(a) of the Business
Trust Statute.

                  Certificate Register and Certificate Registrar: The register
maintained and the registrar appointed pursuant to Section 3.4.

                  Certificateholder or Holder: A Person in whose name a
Certificate is registered in the Certificate Register.

                  Code: The Internal Revenue Code of 1986, and applicable
federal regulations promulgated thereunder, as the same may be amended from time
to time.

                  Corporate Trust Office: The principal office of the Owner
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the Closing Date is located at Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890, Attention:
Corporate Trust Administration; the telecopy number for such office on the date
of the execution of this Agreement is (302) 651-8882.

                  Depositor: The Seller in its capacity as depositor hereunder.

                  Dissolution Event: With respect to the Depositor, the
termination or dissolution of such Person, or the occurrence of an Insolvency
Event with respect to such Person.

                  Eligible Investments: The meaning assigned to such term in the
Sale and Servicing Agreement.

                  ERISA: The meaning assigned to such term in Section 3.4(e).

                  Expenses: The meaning assigned to such term in Section 8.2.

                  Indemnified Parties: The meaning assigned to such term in
Section 8.2.

                  Owner or Certificate Owner: With respect to any Certificate,
the Certificateholder.

                  Owner Trustee: Wilmington Trust Company, or its successor in
interest, acting not individually but solely as trustee, and any successor
trustee appointed as provided in this Agreement.

                  Paying Agent: Any paying agent or co-paying agent appointed
pursuant to Section 3.9, which initially shall be Wilmington Trust Company.

                                      -2-
<PAGE>   7

                  Record Date: With respect to any Distribution Date, the close
of business on the last Business Day immediately preceding such Distribution
Date.

                  Related Documents: The Sale and Servicing Agreement, the
Indenture, the Certificates, the Notes, the Purchase Agreement, the Custodian
Agreement, the Administration Agreement, the Lockbox Agreement, the Depository
Agreement, the letter agreement between Associates Corporation of North America
and the underwriters of the Notes and the Underwriting Agreement among AFL, the
Seller and the underwriters of the Notes. The Related Documents executed by any
party are referred to herein as "such party's Related Documents," "its Related
Documents" or by a similar expression.

                  Sale and Servicing Agreement: The Sale and Servicing
Agreement, dated as of June 1, 2000, among the Trust, the Seller and AFL, in its
individual capacity and as Servicer, as the same may be amended and supplemented
from time to time.

                  Secretary of State: The Secretary of State of the State of
Delaware.

                  Seller: Arcadia Receivables Finance Corp., a Delaware
corporation, or its successor in interest.

                  Servicer's Certificate: The Monthly Report delivered by the
Servicer to the Trust pursuant to Section 3.9 of the Sale and Servicing
Agreement.

                  Trust: The trust created by this Agreement, the estate of
which consists of the Trust Property.

                  Trust Accounts: The Collection Account, the Reserve Account,
the Certificate Distribution Account, the Note Interest Distribution Account and
the Principal Distribution Account.

                  Trust Property: The property and proceeds of every description
conveyed pursuant to Section 2.5 hereof and Section 2.1 of the Sale and
Servicing Agreement, together with the Trust Accounts (including all Eligible
Investments therein and all proceeds therefrom).

                  SECTION 1.2. Usage of Terms. With respect to all terms used in
this Agreement, the singular includes the plural and the plural the singular;
words importing any gender include the other genders; references to "writing"
include printing, typing, lithography, and other means of reproducing words in a
visible form; references to agreements and other contractual instruments include
all subsequent amendments thereto or changes therein entered into in accordance
with their respective terms and not prohibited by this Agreement; references to
Persons include their permitted successors and assigns; and the terms "include"
or "including" mean "include without limitation" or "including without
limitation." To the extent that definitions are contained in this Agreement, or
in any such certificate or other document, such definitions shall control.

                                      -3-
<PAGE>   8

                  SECTION 1.3. Section References. All references to Articles,
Sections, paragraphs, subsections, exhibits and schedules shall be to such
portions of this Agreement unless otherwise specified.

                  SECTION 1.4. Action by or Consent of Certificateholders.
Except as expressly provided herein, any action that may be taken by the
Certificateholders under this Agreement may be taken by a Certificate Majority.
Except as expressly provided herein, any written notice or consent of the
Certificateholders delivered pursuant to this Agreement shall be effective if
signed by Holders of the Certificates evidencing not less than a Certificate
Majority at the time of the delivery of such notice.

                                   ARTICLE II

                                CREATION OF TRUST

                  SECTION 2.1. Creation of Trust. There is hereby formed a trust
to be known as "Associates Automobile Receivables Trust 2000-1," in which name
the Trust may conduct business, make and execute contracts and other instruments
and sue and be sued.

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

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

                           (i) to issue the Notes pursuant to the Indenture and
         the Certificates pursuant to this Agreement and to sell the Notes;

                           (ii) with the proceeds of the sale of the Notes, to
         fund the Reserve Account, to pay the organizational, start-up and
         transactional expenses of the Trust and to pay the balance to the
         Seller pursuant to the Sale and Servicing Agreement and this Agreement;

                           (iii) to assign, grant, transfer, pledge, mortgage
         and convey the Trust Property to the Indenture Trustee on behalf of the
         Noteholders and to hold, manage and distribute to the Certificateholder
         pursuant to the terms of the Sale and Servicing Agreement any portion
         of the Trust Property released from the Lien of, and remitted to the
         Trust pursuant to, the Indenture;

                           (iv) to enter into and perform its obligations under
         the Related Documents to which it is to be a party;

                                      -4-
<PAGE>   9

                           (v) 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

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

The Trust is hereby authorized to engage in the foregoing activities. The Trust
shall not engage in any activity other than in connection with the foregoing or
other than as required or expressly authorized by the terms of this Agreement or
the Related Documents.

                  SECTION 2.4. 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, and the
Owner Trustee hereby accepts such appointment.

                  SECTION 2.5. 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 $10. 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 Property 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.

                  SECTION 2.6. Declaration of Trust. The Owner Trustee hereby
declares that it will hold the Trust Property in trust upon and subject to the
conditions set forth herein, subject to the interests and rights in the Trust
Property granted to other Persons by the Related Documents. It is the intention
and agreement of the parties hereto that the Trust constitutes a business trust
under the Business Trust Statute and that this Agreement constitutes the
governing instrument of such business trust. It is the intention and agreement
of the parties hereto that, solely for income and franchise tax purposes, the
Trust shall be treated as a partnership. None of the parties hereto shall make
the election provided in Treasury Regulation Section 301.7701-3(c) to have the
Trust classified as an association taxable as a corporation. The parties agree
that, unless otherwise required by appropriate tax authorities, the Servicer, on
behalf of the Trust, will file or cause to be filed annual or other necessary
returns, reports and other forms consistent with the characterization of the
Trust as a partnership for such tax purposes. On the date hereof, the Owner
Trustee shall file the Certificate of Trust required by Section 3810(a) of the
Business Trust Statute in the Office of the Secretary of State. Effective as of
the date hereof, the Owner Trustee shall have all rights, powers and duties set
forth herein and in the Business Trust Statute with respect to accomplishing the
purposes of the Trust.

                                      -5-
<PAGE>   10

                  SECTION 2.7. Liability of the Certificateholders. Except as
otherwise provided herein, no Certificateholders shall have any personal
liability or obligation of the Trust or by reason of any action taken by the
parties to this Agreement pursuant to any provisions of this Agreement or any
Related Document.

                  SECTION 2.8. Title to Trust Property.

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

                  (b) The Certificateholders shall not have legal title to any
part of the Trust Property. The Certificateholders shall be entitled to receive
distributions with respect to its undivided beneficial ownership interest in the
Trust only in accordance with Articles V and IX. No transfer, by operation of
law or otherwise, of any right, title or interest by any Certificateholder of
its beneficial ownership interest in the Trust Property 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
Property.

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

                  SECTION 2.10. Representations and Warranties of the Depositor.
By execution of this Agreement, the Depositor makes the following
representations and warranties with respect to itself on which the Owner Trustee
relies in accepting the Trust Property in trust and issuing the Certificates.

                  (a) Organization and Good Standing. It has been duly organized
and is validly existing as a corporation in good standing under the laws of the
State of Delaware, with power and authority to own its properties and to conduct
its business as such properties are currently owned and as such business is
currently conducted and is proposed to be conducted pursuant to this Agreement
and the Related Documents.

                  (b) Due Qualification. It is duly qualified to do business as
a foreign corporation in good standing, and has obtained all necessary licenses
and approvals, in all jurisdictions in which the ownership or lease of its
property, the conduct of its business and the performance of its obligations
under this Agreement and the Related Documents requires such qualification.

                                      -6-
<PAGE>   11

                  (c) Power and Authority. It has the power and authority to
execute and deliver this Agreement and its Related Documents and to perform its
obligations pursuant thereto; and the execution, delivery and performance of
this Agreement and its Related Documents have been duly authorized by all
necessary corporate action.

                  (d) No Consent Required. No consent, license, approval or
authorization or registration or declaration with, any Person or with any
governmental authority, bureau or agency is required in connection with the
execution, delivery or performance of this Agreement and the Related Documents,
except for such as have been obtained, effected or made.

                  (e) No Violation. The consummation of the transactions
contemplated by this Agreement and its Related Documents and the fulfillment of
its obligations under this Agreement and its Related Documents shall not
conflict with, result in any breach of any of the terms and provisions of or
constitute (with or without notice, lapse of time or both) a default under, its
certificate of incorporation or by-laws, or any indenture, agreement, mortgage,
deed of trust or other instrument to which it is a party or by which it is
bound, or result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement, mortgage,
deed of trust or other instrument, or violate any law, order, rule or regulation
applicable to it of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over it or any of its properties.

                  (f) No Proceedings. There are no proceedings or investigations
pending or, to its knowledge, threatened against it before any court, regulatory
body, administrative agency or other tribunal or governmental instrumentality
having jurisdiction over it or its properties, (A) asserting the invalidity of
this Agreement or any of the Related Documents, (B) seeking to prevent the
issuance of the Certificates or the Notes or the consummation of any of the
transactions contemplated by this Agreement or any of the Related Documents, (C)
seeking any determination or ruling that might materially and adversely affect
its performance of its obligations under, or the validity or enforceability of,
this Agreement or any of the Related Documents, or (D) seeking to adversely
affect the federal income tax or other federal, state or local tax attributes of
the Certificates.

                  SECTION 2.11. Federal Income Tax Treatment. The Seller and the
Owner Trustee agree to treat, and to take no action inconsistent with the
treatment of, the Notes as indebtedness for purposes of federal, state, local
and foreign income or franchise taxes and any other tax imposed on or measured
by income. Furthermore, subject to Section 4.1, the Seller and the Owner Trustee
shall treat the Trust as a security device only, and shall not file tax returns
or obtain an employer identification number on behalf of the Trust.

                  In the event that any class of Notes is deemed to represent an
equity interest in the Trust, the Trust shall be treated for federal income tax
purposes as a partnership among the Holders of such Notes and the Seller. In the
event such a partnership if deemed to exist, the net income of the Trust for any
month as determined for federal income tax purposes (and each item of income,
gain, loss, deduction and credit, if any, entering into the computation thereof)
shall be allocated:

                                      -7-
<PAGE>   12

                           (a) among the Certificateholders in equal
         proportions; and

                           (b) in the event the Noteholders of any class are
         deemed to be partners of the partnership created hereby, among such
         Noteholders as of the first Determination

         Date following the end of such month in proportion to their ownership
         of the principal amount of Notes of such class on such date, in an
         amount of such income up to the sum of the monthly Interest
         Distributable Amount for such class for the related Distribution Date,
         and the balance thereof shall be allocated to the Certificateholders in
         accordance with clause (a) above. If the net income of the Trust for
         any succeeding month is insufficient for the allocations to Noteholders
         described in this clause (b), if applicable, net income shall first be
         allocated to such Noteholders to make up such shortfall before being
         allocated to Certificateholders as provided above.

                           In the event the Noteholders of any class are deemed
         to be partners of the partnership created hereby, 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 to the
         Certificateholders to the extent the Certificateholders are reasonably
         expected to bear the economic burden of such net losses, then net
         losses shall be allocated among the Noteholders as of the first
         Determination Date following the end of such month in proportion to
         their ownership of principal amount of Notes of such class on such
         Determination Date. The Certificateholders are authorized to modify the
         allocations in this paragraph if necessary or appropriate, in their
         sole discretion, for the allocations to fairly reflect the economic
         income, gain or loss to the Certificateholders or the Noteholders, or
         to comply with the provisions of the Code and the accompanying Treasury
         Regulations.

                  SECTION 2.12. Covenants of the Certificateholders. Each
Certificateholder by becoming the owner of the Certificates agrees:

                           (a) to be bound by the terms and conditions of the
         Certificates of which such Certificateholder is the owner and of this
         Agreement, including any supplements or amendments hereto and to
         perform the obligations of a Certificateholder as set forth therein or
         herein, in all respects as if it were a signatory hereto. This
         undertaking is made for the benefit of the Trust, the Owner Trustee,
         and any other future Certificateholders;

                           (b) to hereby appoint the Depositor as such Owner's
         agent and attorney- in-fact to sign any federal income tax information
         return filed on behalf of the Trust and agree that, if requested by the
         Trust, it will sign such federal income tax information return in its
         capacity as holder of an interest in the Trust. Each Owner also hereby
         agrees that in its tax returns it will not take any position
         inconsistent with those taken in any tax returns filed by the Trust;

                                      -8-
<PAGE>   13

                           (c) if such Owner is other than an individual or
         other entity holding its Certificate through a broker who reports
         securities sales on Form 1099-B, to notify the Owner Trustee of any
         transfer by it of a Certificate in a taxable sale or exchange, within
         30 days of the date of the transfer; and

                           (d) until the completion of the events specified in
         Section 9.1(e), not to, for any reason, institute proceedings for the
         Trust to be adjudicated a bankrupt or insolvent, or consent to the
         institution of bankruptcy or insolvency proceedings against the Trust,
         or file a petition seeking or consenting to reorganization or relief
         under any applicable federal or state law relating to bankruptcy, or
         consent to the appointment of a receiver, liquidator, assignee,
         trustee, sequestrator (or other similar official) of the Trust or a
         substantial part of its property, or cause or permit the Trust to make
         any assignment for the benefit of its creditors, or admit in writing
         its inability to pay its debts generally as they become due, or declare
         or effect a moratorium on its debt or take any action in furtherance of
         any such action.

                                   ARTICLE III

                                THE CERTIFICATES

                  SECTION 3.1. Initial Ownership. Upon the formation of the
Trust by the contribution by the Depositor pursuant to Section 2.5 and until the
issuance of the Certificates, the Depositor shall be the sole beneficiary of the
Trust.

                  SECTION 3.2. The Certificates. The Certificates shall be
evidenced by a single certificate issued on the Closing Date to Arcadia
Receivables Finance Corp. VI. The Certificates shall be executed on behalf of
the Trust by the Owner Trustee by manual or facsimile signature of any
authorized signatory of the Owner Trustee having such authority under the Owner
Trustee's seal imprinted or otherwise affixed thereon and attested on behalf of
the Owner Trustee by the manual or facsimile signature of any authorized
signatory of the Owner Trustee. Certificates bearing the manual or facsimile
signatures of individuals who were, at the time when such signatures were
affixed, authorized to sign on behalf of the Owner Trustee shall be validly
issued and entitled to the benefits of this Agreement, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the
authentication and delivery of such Certificates.

                  SECTION 3.3. Authentication of Certificates. Simultaneously
with the sale, assignment and transfer to the Trust of the Receivables and the
delivery to the Owner Trustee of the Receivable Files and the other Trust
Property pursuant to the Sale and Servicing Agreement, the Owner Trustee shall
cause a single Certificate to be executed on behalf of the Trust, authenticated
and delivered to or upon the order of Arcadia Receivables Finance Corp. VI. No
Certificate shall entitle its holder to any benefit under this Agreement, or
shall be valid for any purpose, unless there shall appear on such Certificate a
certificate of authentication substantially in the form set forth in Exhibit B,
executed by the Owner Trustee or the Authentication Agent, by manual or
facsimile signature; such authentication shall constitute conclusive evidence
that such Certificate shall have been duly authenticated and

                                      -9-
<PAGE>   14

delivered hereunder. Wilmington Trust Company is hereby initially appointed as
Authentication Agent. All Certificates shall be dated the date of their
authentication.

                  SECTION 3.4. Registration of Transfer and Exchange of
Certificates.

                           (a) The Certificate Registrar shall maintain, or
         cause to be maintained, at the office or agency maintained pursuant to
         Section 3.8, a Certificate Register in which,

         subject to such reasonable regulations as it may prescribe, the Owner
         Trustee shall provide for the registration of Certificates and of
         transfers and exchanges of Certificates as provided in this Agreement.
         The Owner Trustee is hereby appointed initial Certificate Registrar for
         the purpose of registering Certificates and transfers and exchanges of
         Certificates as provided in this Agreement.

                           (b) Upon surrender for registration of transfer of
         any Certificate at the office or agency maintained pursuant to Section
         3.8, and compliance with subsection (c), the Owner Trustee shall
         execute, authenticate and deliver (or shall cause the Authentication
         Agent to authenticate and deliver), in the name of the designated
         transferee or transferees, one or more new Certificates, dated the date
         of authentication by the Owner Trustee or any authenticating agent. At
         the option of a Holder, Certificates may be exchanged for other
         Certificates of the same class in authorized denominations of a like
         aggregate amount upon surrender of the Certificates to be exchanged at
         the office or agency maintained pursuant to Section 3.8.

                           (c) (1) No transfer of a Certificate shall be made by
         Arcadia Receivables Finance Corp. VI or any other Person unless such
         transfer is exempt from the registration requirements of the Securities
         Act of 1933, as amended (the "Act"), and any applicable state
         securities laws or is made in accordance with the Act and laws. In the
         event that any such transfer is to be made, (A) the Depositor may
         require a written Opinion of Counsel acceptable to and in form and
         substance satisfactory to the Depositor that such transfer may be made
         pursuant to an exemption, describing the applicable exemption and the
         basis therefor, from the Act and laws or is being made pursuant to the
         Act and laws, which Opinion of Counsel shall not be an expense of the
         Owner Trustee or the Depositor, and (B) the Owner Trustee shall require
         the transferee to execute an investment letter substantially in the
         form of Exhibit C attached hereto, which investment letter shall not be
         an expense of the Owner Trustee or the Depositor. Any Certificateholder
         desiring to effect such transfer shall, and does hereby agree to,
         indemnify the Owner Trustee, the Depositor and the Certificate
         Registrar against any liability that may result if the transfer is not
         so exempt or is not made in accordance with such federal and state
         laws. In addition, no transfer of a Certificate shall be made by
         Arcadia Receivables Finance Corp. VI or any other person to an
         Affiliate of the Servicer or the Seller without (i) the written Opinion
         of Counsel acceptable to and in form and substance satisfactory to the
         Depositor that in the event the Servicer or the Seller became a debtor
         under the United States Bankruptcy Code, a court exercising reasonable
         judgment under then existing statutes and precedents would not order
         that the assets of such Affiliate be consolidated with those of the

                                      -10-
<PAGE>   15

         Servicer or the Seller, which opinion shall not be an expense of the
         Owner Trustee or the Depositor, and (ii) written notification from each
         Rating Agency to the effect that such transfer will not cause such
         Rating Agency to downgrade its then-current ratings, if any, of any of
         the Notes below the lower of the then-current rating or the rating
         assigned to such Notes as of the Closing Date by such Rating Agency.

                                    (2) Any transfer, sale or other disposition
         not in compliance with the provisions of this Section 3.4(c) shall be
         deemed to be void and of no legal force or effect whatsoever and such
         transferee shall be deemed to not be the Certificateholder for any
         purpose hereunder, including, but not limited to, the receipt of
         distributions on such Certificate, and shall be deemed to have no
         interest whatsoever in such Certificate.

                           (d) No service charge shall be made for any
         registration of transfer or exchange of Certificates, but the Owner
         Trustee or the Certificate Registrar may require payment of a sum
         sufficient to cover any expense, tax or governmental charge that may be
         imposed in connection with any transfer or exchange of Certificates.

                           (e) The Certificates may not be acquired by or for
         the account of (i) a pension, profit sharing or other employee benefit
         plan, or an individual retirement account or Keogh plan, subject to
         Title I of the Employee Retirement Income Security Act of 1974, as
         amended ("ERISA") or Section 4975 of the Internal Revenue Code of 1986,
         as amended (a "Benefit Plan"), or (ii) any entity whose underlying
         assets include "plan assets" (within the meaning of Department of Labor
         ("DOL") Regulation Section 2510.3-101, 29 C.F.R. Section 2510.3-101 or
         otherwise under ERISA) by reason of a Benefit Plan's investment in the
         entity, including, without limitation, an insurance company acting on
         behalf of its general account.

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

                           (g) Notwithstanding the preceding provisions of this
         Section, the Owner Trustee shall not be required to make, and the
         Certificate Registrar shall not be required to register, transfers or
         exchanges of Certificates for a period of 15 days preceding the due
         date for any payment with respect to the Certificates.

                                      -11-
<PAGE>   16

                  SECTION 3.5. Mutilated, Destroyed, Lost or Stolen
Certificates.

                  If (a) any mutilated Certificate is surrendered to the
Certificate Registrar, or the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate, and (b) there
is 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 notice to the Certificate Registrar or the Owner Trustee that such
Certificate has been acquired by a bona fide purchaser, the Owner Trustee on
behalf of the Trust shall execute, authenticate and deliver (or the
Authentication Agent shall authenticate and deliver), in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like tenor. In connection with the issuance of any new Certificate under this
Section 3.5, the Owner Trustee may require the payment of a sum sufficient to
cover any expense, tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Owner Trustee and the Certificate Registrar) connected therewith. Any duplicate
Certificate issued pursuant to this Section 3.5 shall constitute conclusive
evidence of beneficial ownership in the assets of the Trust, as if originally
issued, whether or not the lost, stolen or destroyed Certificate shall be found
at any time.

                  SECTION 3.6. Persons Deemed Owners.

                  Prior to due presentation of a Certificate for registration of
transfer, the Owner Trustee, the Certificate Registrar and any agent of the
Owner Trustee or the Certificate Registrar may treat the person in whose name
any Certificate is registered as the owner of such Certificate for the purpose
of receiving distributions pursuant to Section 5.2 and for all other purposes
whatsoever, and neither the Owner Trustee, the Certificate Registrar nor any
agent of the Owner Trustee or the Certificate Registrar shall be affected by any
notice to the contrary.

                  SECTION 3.7. Access to List of Certificateholders' Names and
Addresses.

                  The Owner Trustee shall furnish or cause to be furnished to
the Servicer, within 15 days after receipt by the Owner Trustee of a written
request therefor, a list, in such form as the Servicer may reasonably require,
of the names and addresses of the Certificateholders as of the most recent
Record Date for payment of distributions to Certificateholders. If three or more
Certificateholders of a Class, or one or more Certificateholders holding not
less than 25% of the interests of the Certificateholders as a whole (hereinafter
referred to as "Applicants"), 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 Certificates and 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.
Every Certificateholder, by receiving and holding a Certificate, agrees that
none of the Servicer or the Owner Trustee, nor any agent thereof, shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Certificateholders under this Agreement, regardless of the
source from which such information was derived.

                                      -12-
<PAGE>   17

                  SECTION 3.8. Maintenance of Office or Agency. The Owner
Trustee shall maintain in Wilmington, Delaware, an office or offices or agency
or agencies where Certificates may be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Owner Trustee in
respect of the Certificates and the Related Documents may be served. The Owner
Trustee initially designates Wilmington Trust Company, Rodney Square North, 1100
North Market Street, Wilmington, Delaware 19890 as its principal corporate trust
office for such purposes. The Owner Trustee shall give prompt written notice to
the Depositor and to the Certificateholder of any change in the location of the
Owner Trustee of any such office or agency.

                  SECTION 3.9. Appointment of Paying Agent. The Paying Agent
shall make distributions to Certificateholders from the Certificate Distribution
Account pursuant to Section 5.2 and shall report the amounts of such
distributions to the Owner Trustee. Any Paying Agent shall have the revocable
power to withdraw funds from the Certificate Distribution Account for the
purpose of making the distributions referred to above. The Owner Trustee may
revoke such power and remove the Paying Agent if the Owner Trustee determines in
its sole discretion that the Paying Agent shall have failed to perform its
obligations under this Agreement in any material respect. The Trust hereby
appoints Wilmington Trust Company as Paying Agent. Wilmington Trust Company
shall be permitted to resign as Paying Agent upon 30 days' written notice to the
Owner Trustee. In the event that Wilmington Trust Company shall no longer be the
Paying Agent, the Owner Trustee shall appoint a successor to act as Paying Agent
(which shall be a bank or trust company). The Owner Trustee shall cause such
successor Paying Agent or any additional Paying Agent appointed by the Owner
Trustee to execute and deliver to the Owner Trustee an instrument in which such
successor Paying Agent or additional Paying Agent shall agree with the Owner
Trustee that as Paying Agent, such successor Paying Agent or additional Paying
Agent 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 7.1, 7.3, 7.4 and 8.1 shall
apply to the Owner Trustee also in its role as Paying Agent for so long as the
Owner Trustee shall act as Paying Agent and, to the extent applicable, to any
other Paying Agent appointed hereunder. Any reference in this Agreement to the
Paying Agent shall include any co-paying agent unless the context requires
otherwise.

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

                  SECTION 4.1. Restriction on Power of Certificateholders. The
Certificateholders shall not have any right to vote or in any manner otherwise
control the operation and management of the Trust except as expressly provided
in this Agreement.

                  SECTION 4.2. Prior Notice to Certificateholders with Respect
to Certain Matters. The Owner Trustee shall not take any of the following
actions, unless at least 30 days before the taking

                                      -13-
<PAGE>   18

of such action, the Owner Trustee shall have notified the Certificateholders in
writing of the proposed action and the Certificateholders shall not have
notified the Owner Trustee in writing prior to the 30th day after such notice is
given that such Certificateholders has withheld consent or provided alternative
direction:

                           (a) the initiation of any material claim or lawsuit
         by the Trust except claims or lawsuits brought in connection with the
         collection of the Receivables and the compromise of any material
         action, claim or lawsuit brought by or against the Trust (except with
         respect to the aforementioned claims or lawsuits for collection of the
         Receivables);

                           (b) the election by the Trust to file an amendment to
         the Certificate of Trust unless such amendment is required to be filed
         under the Business Trust Statute;

                           (c) the amendment of the Indenture by a supplemental
         indenture (i) in circumstances where the consent of any Noteholder is
         required or (ii) in circumstances where the consent of the Noteholders
         is not required unless such amendment would not, based upon an Opinion
         of Counsel on which the Owner Trustee may rely, materially and
         adversely affect the interests of the Certificateholders; or

                           (d) the amendment, change or modification of the
         Administration Agreement or the Sale and Servicing Agreement, unless
         such amendment would not, based upon an Opinion of Counsel on which the
         Owner Trustee may rely, materially and adversely affect the interests
         of the Certificateholders.

                  SECTION 4.3. Action by Certificateholders with Respect to
Bankruptcy. The Owner Trustee shall not have the power to commence a voluntary
proceeding in bankruptcy relating to the Trust without the prior written consent
of the Certificateholders and the delivery to the Owner Trustee by the
Certificateholders of a certificate certifying that the Certificateholders
reasonably believe that the Trust is insolvent.

                  SECTION 4.4. Restrictions on Certificateholders' Power. The
Certificateholders shall not direct the Owner Trustee to take or refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Agreement or any of the Related
Documents or would be contrary to Section 2.3, nor shall the Owner Trustee be
obligated to determine if a Certificateholder's direction violates this Section
4.4 or to follow any such direction, if given.

                                      -14-
<PAGE>   19

                                    ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

                  SECTION 5.1. Trust Accounts.

                           (a) On or prior to the Closing Date, the Depositor
         shall cause the Servicer to establish the Certificate Distribution
         Account in the name of the Owner Trustee for the benefit of the
         Certificateholders. The Certificate Distribution Account shall be an
         Eligible Account and initially shall be a segregated trust account
         established with the Owner Trustee and maintained with the Owner
         Trustee.

                           (b) The Trust 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. If, at any time, the
         Certificate Distribution Account ceases to be an Eligible Account, the
         Owner Trustee shall within 5 Business Days (or such longer period, not
         to exceed 30 calendar days, as to which each Rating Agency may consent)
         establish a new Certificate Distribution Account as an Eligible Account
         and shall transfer any cash and/or any investments to such new
         Certificate Distribution Account.

                           (c) All amounts held in the Certificate Distribution
         Account shall, to the extent permitted by applicable laws, rules and
         regulations, be invested by the Paying Agent in Eligible Investments
         pursuant to the written instructions of the Administrator that mature
         not later than one Business Day prior to the Distribution Date for the
         Monthly Period to which such amounts relate. Investments in Eligible
         Investments shall be made in the name of the Trust, and such
         investments shall not be sold or disposed of prior to their maturity.
         Any investment of funds in the Certificate Distribution Account shall
         be made in Eligible Investments held by a financial institution with
         respect to which (a) such institution has noted the Trust's interest
         therein by book entry or otherwise and (b) a confirmation of the
         Trust's interest has been sent to the Owner Trustee by such
         institution, provided that such Eligible Investments are (i) specific
         certificated securities, and (ii) either (A) in the possession of such
         institution or (B) in the possession of a clearing corporation in New
         York or Delaware, registered in the name of such clearing corporation,
         not endorsed for collection or surrender or any other purpose not
         involving transfer, not containing any evidence of a right or interest
         inconsistent with the Trust's security interest therein, and held by
         such clearing corporation in an account of such institution. Subject to
         the other provisions hereof, the Paying Agent shall have sole control
         over each such investment and the income thereon, and any certificate
         or other instrument evidencing any such investment, if any, shall be
         delivered directly to the Trust or its agent, together with each
         document of transfer, if any, necessary to transfer title to such
         investment to the Trust in a manner which complies with this Section
         5.1. All interest, dividends, gains upon sale and other income from, or
         earnings on investment of funds in the Certificate Distribution Account
         shall be distributed on the next Distribution Date pursuant to Section
         5.2(a). The Servicer shall deposit

                                      -15-
<PAGE>   20

         in the Certificate Distribution Account an amount equal to any net loss
         on such investments immediately as realized.

                  SECTION 5.2. Application of Funds in Certificate Distribution
Account.

                           (a) On each Distribution Date, the Paying Agent will,
         based on the information contained in the Servicer's Certificate
         delivered on the related Determination Date pursuant to Section 3.9 of
         the Sale and Servicing Agreement, distribute to Certificateholders, on
         a pro rata basis to the extent of the funds available, amounts and
         deposited in the Certificate Distribution Account pursuant to the Sale
         and Servicing Agreement.

                           (b) On the Distribution Date following the date on
         which amounts received in respect of the Servicer's exercise of its
         option to purchase the corpus of the Trust pursuant to Section 9.1(a)
         of the Sale and Servicing Agreement are deposited in the Certificate
         Distribution Account, the Paying Agent will distribute such amounts to
         Certificateholders in the manner described in Section 5.2(a).

                           (c) On the Distribution Date following the date on
         which the Indenture Trustee makes payments of money or property in
         respect of liquidation of the Trust Property pursuant to Section 5.06
         of the Indenture and deposits funds received in connection with such
         liquidation in the Certificate Distribution Account, the Paying Agent
         will distribute such funds to Certificateholders in the manner
         described in Section 5.2(a).

                           (d) On each Distribution Date, the Owner Trustee
         shall send or cause to be sent to each Certificateholder the statement
         required pursuant to Section 4.8 of the Sale and Servicing Agreement.

                           (e) To the extent required by the Code, the Servicer
         shall notify the Paying Agent of the amount, if any, to be withheld,
         and the Paying Agent shall withhold from each payment due hereunder or
         under any Certificate, United States withholding taxes at the
         appropriate rate, and, on a timely basis, to deposit such amounts with
         an authorized depository and make such returns, filings and other
         reports in connection therewith as are required of it under the Code.
         Any Certificateholder which is eligible for an exemption from or
         reduction of withholding of United States federal income taxes shall,
         from time to time, provide to the Servicer, the Owner Trustee and the
         Paying Agent in a timely manner all appropriate and properly completed
         forms indicating such eligibility, as may be necessary to permit the
         Paying Agent not to withhold taxes from payments due to such
         Certificateholder. In connection with the foregoing, upon request, the
         Owner Trustee shall promptly furnish or cause to be furnished to each
         Certificateholder in a timely fashion such U.S. Treasury forms as are
         required by the Code to be furnished to such Certificateholder
         indicating payment of any taxes withheld from any payments by the
         Paying Agent to such Certificateholder. The Owner Trustee and the
         Paying Agent shall be fully protected in relying upon, and each
         Certificateholder by its acceptance of a Certificate hereunder agrees
         to indemnify and hold the Owner Trustee, the Paying Agent and the
         Servicer harmless against all claims or liability of any kind arising
         in connection with or related to the Owner Trustee's or the Paying
         Agent's reliance upon any documents, forms or information provided by
         any Certificateholder to the Owner Trustee, the

                                      -16-
<PAGE>   21

         Paying Agent or the Owner Trustee. In addition, if the Paying Agent has
         not withheld taxes on any payment made to any Certificateholder, and
         the Paying Agent is subsequently required to remit to any taxing
         authority any such amount not withheld, such Certificateholder shall
         return such amount to the Paying Agent upon written demand by the
         Paying Agent. In no event shall the Owner Trustee or the Paying Agent
         be liable for consequential damages to any Certificateholder.

                  SECTION 5.3. Method of Payment. Subject to Section 9.1(c),
distributions required to be made to Certificateholders on any Distribution 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
Holder at a bank or other entity having appropriate facilities therefor, if such
Certificateholder shall have provided to the Certificate Registrar appropriate
written instructions at least five Business Days prior to such Distribution Date
and such Holder's Certificates in the aggregate evidence a denomination of not
less than $1,000,000, or, if not, by check mailed to such Certificateholder at
the address of such holder appearing in the Certificate Register.

                  SECTION 5.4. No Segregation of Monies; No Interest. Any monies
received by the Owner Trustee or Paying Agent hereunder need not be segregated
in any manner except to the extent required by law and may be deposited under
such general conditions as may be prescribed by law, and, except as provided
herein, the Paying Agent and the Owner Trustee shall not be liable for any
interest thereon.

                  SECTION 5.5. Accounting; Reports; Tax Returns.

                           (a) It is the intention of the parties that the Trust
         will be treated as a partnership for tax purposes. Accordingly, the
         Administrator has agreed pursuant to the Administration Agreement that
         the Administrator shall, as appropriate: (i) maintain (or cause to be
         maintained) the books of the Trust on a calendar year basis on the
         accrual method of accounting, (ii) upon request, deliver to each
         Certificateholder, as may be required by the Code, such information as
         may be required to enable each Certificateholder to prepare its federal
         and state income tax returns, (iii) obtain a federal tax identification
         number for the Trust, and file or cause to be filed such tax returns
         relating to the Trust (once such returns are delivered to it in final
         form), and direct the Owner Trustee to make such elections as may from
         time to time be required or appropriate under any applicable state or
         federal statute or rule or regulation thereunder so as to maintain the
         Trust's characterization as a partnership for federal income tax
         purposes, (iv) collect or cause to be collected any withholding tax as
         described in and in accordance with Section 5.2(f) with respect to
         income or distributions to Certificateholders and (v) cooperate in the
         filing of all documents required to be filed by the Trust with the
         Securities and Exchange Commission and otherwise take or cause to be
         taken all

                                      -17-
<PAGE>   22

         such actions as are notified by the Servicer to the Administrator as
         being required for the Trust's compliance with all applicable
         provisions of state and federal securities laws.

                           (b) The Owner Trustee shall sign on behalf of the
         Trust the tax returns of the Trust provided it in execution form,
         unless applicable law requires the Certificateholders to sign such
         documents, in which case such documents shall be signed by the
         Certificateholders.

                           (c) None of the parties hereto shall make the
         election provided in Treasury Regulation Section 301.7701-3(c) to have
         the Trust classified as an association taxable as a corporation.

                                   ARTICLE VI

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

                  SECTION 6.1. General Authority. The Owner Trustee is
authorized and directed to execute and deliver the Related Documents to which
the Trust is to be a party and each certificate or other document attached as an
exhibit to or contemplated by the Related Documents to which the Trust is to be
a party and any amendment thereto, and on behalf of the Trust, to direct the
Indenture Trustee to authenticate and deliver the Class A-1 Notes in the
aggregate principal amount of $207,000,000, the Class A-2 Notes in the aggregate
principal amount of $92,000,000, the Class A-3 Notes in the aggregate principal
amount of $301,000,000, the Class M Notes in the aggregate principal amount of
$64,583,000, and the Class B Notes in the aggregate principal amount of
$85,417,000. In addition to the foregoing, the Owner Trustee is authorized, but
shall not be obligated, to take all actions required of the Trust pursuant to
the Related Documents. The Owner Trustee is further authorized, on behalf of the
Trust, to enter into the Administration Agreement, to appoint a successor
Administrator and to take from time to time such action as the Instructing Party
recommends with respect to the Related Documents so long as such actions are
consistent with the terms of the Related Documents.

                  SECTION 6.2. General Duties. It shall be the duty of the Owner
Trustee to discharge (or cause to be discharged through the Administrator or
such agents as shall be appointed from time to time) all of its responsibilities
pursuant to the terms of this Agreement and the Related Documents and to
administer the Trust, subject to the Related Documents and in accordance with
the provisions of this Agreement. Notwithstanding the foregoing, the Owner
Trustee shall be deemed to have discharged its duties and responsibilities
hereunder and under the Related 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 Related Document, and the Owner
Trustee shall not be liable for the default or failure of the Administrator to
carry out its obligations under the Administration Agreement. Notwithstanding
anything herein or in any Related Document to the contrary, the Owner Trustee
shall discharge its obligations pursuant to Section 8.2 and Section 8.3 of the
Sale and Servicing Agreement directly and not through the Administrator or any
agent.

                                      -18-
<PAGE>   23

                  SECTION 6.3. Action upon Instruction.

                  (a) Subject to Article IV, the Certificateholders shall have
the exclusive right to direct the actions of the Owner Trustee in the management
of the Trust, so long as such instructions are not inconsistent with the express
terms set forth herein or in any Related Document. The Certificateholders shall
not instruct the Owner Trustee in a manner inconsistent with this Agreement or
the Related Documents. Notwithstanding the foregoing, the Owner Trustee shall,
upon due authorization and consent by the Seller, execute and deliver such
notices, consents to the service of process and other necessary registration
forms as may be required to qualify the Trust under the securities laws of any
jurisdiction in which the underwriters of the Trust's securities may seek to
qualify the securities for sale. The Trust is not hereby authorized
without the express consent of the Seller to qualify the Seller as a foreign
corporation or to execute on behalf of the Seller a general consent to service
of process in any jurisdiction.

                  (b) The Owner Trustee shall not be required to take any action
hereunder or under any Related Document if the Owner Trustee shall have
reasonably determined, or shall have been advised by counsel, that such action
is contrary to the terms hereof or of any Related Document or is otherwise
contrary to law.

                  (c) No provision of this Agreement shall require the Owner
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of its duties hereunder or in the exercise of any of its
rights or powers if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

                  (d) In accepting the trusts hereby created, the Owner Trustee
acts solely as trustee hereunder and not in its individual capacity. The Owner
Trustee agrees to disburse any monies actually received by it constituting part
of the Trust Property upon the terms of this Agreement. Notwithstanding anything
in this Agreement to the contrary, the Owner Trustee, when acting in such
capacity, shall not be personally liable or accountable to any Person, under any
circumstances, except by reason of its gross negligence, willful misconduct or
breach of its representations, warranties or covenants.

                  (e) The Owner Trustee shall be under no liability (except as
provided in (d) above) for any action taken by the Owner Trustee in good faith
in reliance upon any paper, order, list, demand, request, consent, affidavit,
notice, opinion, direction, endorsement, assignment, resolution, draft or other
document believed by it to be genuine and to have been signed by the proper
party or parties or for the disposition of monies or Trust Property pursuant to
this Agreement. As to any fact or matter, the manner of ascertainment 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 officer 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.

                                      -19-
<PAGE>   24

                  (f) Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or any Related Document, the Owner Trustee shall promptly give notice
(in such form as shall be appropriate under the circumstances) to the
Certificateholders requesting instruction as to the course of action to be
adopted, and to the extent the Owner Trustee acts in good faith in accordance
with any written instruction received from the Certificateholders, 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 ten days of
such notice (or within such shorter period of time as reasonably may be
specified in such notice or may be necessary under the circumstances) it may,
but shall be under no duty to, take or refrain from taking such action, not
inconsistent with this Agreement or the Related 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.

                  (g) In the event that the Owner Trustee is unsure as to the
application of any provision of this Agreement or any Related 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 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 Related
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 6.4. 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 Property, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Trust is a party, except as expressly provided by the terms of this
Agreement (including as provided in Section 6.2) or in any written instruction
received by the Owner Trustee pursuant to Section 6.3; and no implied duties or
obligations shall be read into this Agreement or any Related Document against
the Owner Trustee. The Owner Trustee shall have no responsibility for preparing,
monitoring or filing any financing or continuation statements in any public
office at any time or otherwise to perfect or maintain the perfection of any
security interest or lien granted to it hereunder or to record this Agreement or
any Related Document; however, the Owner Trustee will from time to time execute
and deliver such financing or continuation statements as are prepared by the
Servicer and delivered to the Owner Trustee for its execution on behalf of the
Trust for the purpose of perfecting or maintaining the perfection of such a
security interest or lien or effecting such a recording. The Owner Trustee
nevertheless agrees that it will, at its own cost and expense (and not at the
expense of the Trust), promptly take all action as may be necessary to discharge
any liens on any part of the Trust Property

                                      -20-
<PAGE>   25

that are attributable to claims against the Owner Trustee in its individual
capacity that are not related to the ownership or the administration of the
Trust Property.

                  SECTION 6.5. 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 Property 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 Related Documents and
(iii) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to Section 6.3.

                  SECTION 6.6. Restrictions. The Owner Trustee shall not take
any action (i) that is inconsistent with the purposes of the Trust set forth in
Section 2.3 or (ii) 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.

                  SECTION 6.7. Administration Agreement.

                  (a) The Administrator is authorized to execute on behalf of
the Trust all documents, reports, filings, instruments, certificates and
opinions as it shall be the duty of the Trust to prepare, file or deliver
pursuant to the Related Documents. Upon written request, the Owner Trustee shall
execute and deliver to the Administrator a power of attorney appointing the
Administrator its agent and attorney-in-fact to execute all such documents,
reports, filings, instruments, certificates and opinions.

                  (b) If the Administrator shall resign or be removed pursuant
to the terms of the Administration Agreement, the Owner Trustee may, and is
hereby authorized and empowered to, appoint or consent to the appointment of a
successor Administrator pursuant to the Administration Agreement.

                  (c) If the Administration Agreement is terminated, the Owner
Trustee may, and is hereby authorized and empowered to, with the consent of the
Certificateholders, appoint or consent to the appointment of a Person to perform
substantially the same duties as are assigned to the Administrator in the
Administration Agreement pursuant to an agreement containing substantially the
same provisions as are contained in the Administration Agreement.

                  (d) The Owner Trustee shall promptly notify the Depositor of
any default by or misconduct of the Administrator under the Administration
Agreement of which the Owner Trustee has received written notice or of which a
Responsible Officer has actual knowledge.

                                      -21-
<PAGE>   26

                                   ARTICLE VII

                          CONCERNING THE OWNER TRUSTEE

                  SECTION 7.1. Acceptance of Trustee 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 monies actually received by it
constituting part of the Trust Property upon the terms of the Related Documents
and this Agreement. The Owner Trustee shall not be answerable or accountable
hereunder or under any Related Document under any circumstances, except (i) for
its own willful misconduct or gross negligence, (ii) in the case of the
inaccuracy of any representation or warranty contained in Section 7.3, (iii) for
liabilities arising from the failure of the Owner Trustee to perform obligations
expressly undertaken by it in the last sentence of Section 6.4 hereof, (iv) for
any investments issued by the Owner Trustee or any branch or affiliate thereof
in its commercial capacity or (v) for taxes, fees or other charges on, based on
or measured by, any fees, commissions or compensation received by the Owner
Trustee. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):

                           (a) the Owner Trustee shall not be liable for any
         error of judgment made in good faith by a Responsible Officer of the
         Owner Trustee;

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

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

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

                           (e) the Owner Trustee 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
         Property or for or in respect of the validity or sufficiency of the
         Related Documents, other than the certificate of authentication on the
         Certificates, and the Owner Trustee shall in no event assume or incur
         any liability, duty, or obligation to the Custodian, the Indenture
         Trustee, any Noteholder or any Certificateholder, other than as
         expressly provided for herein and in the Related Documents;

                                      -22-
<PAGE>   27

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

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

                  SECTION 7.2. Furnishing of Documents. The Owner Trustee shall
furnish to the Certificateholders promptly upon receipt of a written request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Owner Trustee under the Related Documents unless the Certificateholders have
previously received such items.

                  SECTION 7.3. Representations and Warranties. The Owner Trustee
hereby represents and warrants to the Depositor and the Certificateholders that:

                           (a) It is a banking corporation duly organized and
         validly existing in good standing under the laws of the State of
         Delaware. It has all requisite corporate power and authority and all
         franchises, grants, authorizations, consents, orders and approvals from
         all governmental authorities necessary to execute, deliver and perform
         its obligations under this Agreement and each Related Document to which
         the Trust is a party.

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

                           (c) Neither the execution nor 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

                                      -23-
<PAGE>   28

         order binding on it, or constitute any default under its charter
         documents or by-laws or any indenture, mortgage, contract, agreement or
         instrument to which it is a party or by which any of its properties may
         be bound or result in the creation or imposition of any lien, charge or
         encumbrance on the Trust Property resulting from actions by or claims
         against the Owner Trustee individually which are unrelated to this
         Agreement or the Related Documents.

                  SECTION 7.4. Reliance; Advice of Counsel.

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

                  (b) In the exercise or administration of the trusts hereunder
and in the performance of its duties and obligations under this Agreement or the
Related 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 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 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 Related Document.

                  SECTION 7.5. Not Acting in Individual Capacity. Except as
provided in this Article VII, in accepting the trusts hereby created Wilmington
Trust Company 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 Related Document shall
look only to the Trust Property for payment or satisfaction thereof.

                  SECTION 7.6. Owner Trustee Not Liable for Certificates, Notes
or Receivables. The recitals contained herein and in the Certificates (other
than the signature and counter-signature of the Owner Trustee on the
Certificates) shall be taken as the statements of the Depositor (other than the
signature or counter-signature of the Owner Trustee on the Notes), and the Owner
Trustee assumes no responsibility for the correctness thereof. The Owner Trustee
makes no representations as to the validity or sufficiency of this Agreement, of
any Related Document or of the Certificates (other than the signature and
counter-signature of the Owner Trustee on the Certificates) or the Notes (other
than the

                                      -24-
<PAGE>   29

signature or counter-signature of the Owner Trustee on 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 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 Property or its
ability to generate the payments to be distributed to Noteholders under the
Indenture or any payments to Certificateholders under this Agreement, 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 or any computer or other record
thereof; the validity of the assignment of any Receivable to the Trust or of any
intervening assignment; the completeness of any Receivable; the performance or
enforcement of any Receivable; the compliance by the Seller or the Servicer with
any warranty or representation made under any Related Document or in any Related
Document, or the accuracy of any such warranty or representation or any action
of the Paying Agent, the Indenture Trustee, the Custodian or the Servicer taken
in the name of the Owner Trustee.

                  SECTION 7.7. Owner Trustee May Own Certificates and Notes. The
Owner Trustee in its individual or any other capacity may become the owner or
pledgee of Certificates or Notes and may deal with the Depositor, the Seller,
the Indenture Trustee and the Servicer in banking or other transactions with the
same rights as it would have if it were not Owner Trustee.

                                  ARTICLE VIII

                          COMPENSATION OF OWNER TRUSTEE

                  SECTION 8.1. Owner Trustee's Fees and Expenses. The Owner
Trustee shall receive as compensation for its services hereunder such fees as
have been separately agreed upon before the date hereof between AFL and the
Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by AFL
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; provided,
however, that the Owner Trustee shall only be entitled to reimbursement for
expenses hereunder to the extent such expenses (i) are fees of outside counsel
engaged by the Owner Trustee in respect of the performance of its obligations
hereunder or (ii) relate to the performance of its obligations pursuant to
Section 5.5 hereof.

                  SECTION 8.2. Indemnification. AFL shall be liable as primary
obligor for, and shall indemnify the Owner Trustee in its individual capacity
and its successors, assigns, agents and servants, and any co-trustee
(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

                                      -25-
<PAGE>   30

against the Owner Trustee or any Indemnified Party in any way relating to or
arising out of this Agreement, the Related Documents, the Trust Property, the
administration of the Trust Property or the action or inaction of the Owner
Trustee hereunder, except only that AFL shall not be liable for or required to
indemnify the Owner Trustee from and against Expenses arising or resulting from
any of the matters described in the third sentence of Section 7.1. The
indemnities contained in this Section shall survive the resignation or
termination of the Owner Trustee or the termination of this Agreement.

                  SECTION 8.3. Non-recourse Obligations. Notwithstanding
anything in this Agreement or any Related Document, the Owner Trustee agrees in
its individual capacity and in its capacity as Owner Trustee for the Trust that
all obligations of the Trust to the Owner Trustee individually or as Owner
Trustee for the Trust shall be recourse to the Trust Property only.

                                   ARTICLE IX

                                   TERMINATION

                  SECTION 9.1. Termination of the Trust.

                           (a) The respective obligations and responsibilities
         of the Depositor and the Owner Trustee created by this Agreement and
         the Trust created by this Agreement shall terminate upon the later of
         (i) the maturity or other liquidation of the last Receivable (including
         the purchase as of any Accounting Date by the Seller or the Servicer at
         its option of the corpus of the Trust as described in Section 9.1 of
         the Sale and Servicing Agreement) and the subsequent distribution of
         amounts in respect of such Receivables as provided in the Related
         Documents, (ii) the payment to Certificateholders of all amounts
         required to be paid to them pursuant to the Agreement and (iii) the
         written consent of 100% of the Noteholders and 100% of the
         Certificateholders. In any case, there shall be delivered to the Owner
         Trustee, the Indenture Trustee and the Rating Agencies an Opinion of
         Counsel that all applicable preference periods under federal, state and
         local bankruptcy, insolvency and similar laws have expired with respect
         to the payments pursuant to clause (ii); 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 living on the date of this Agreement of Rose Kennedy of the
         Commonwealth of Massachusetts; and provided, further, that the rights
         to indemnification under Section 8.2 shall survive the termination of
         the Trust. The Servicer shall promptly notify the Owner Trustee of any
         prospective termination pursuant to this Section 9.1. Except as
         provided in Section 9.2, the bankruptcy, liquidation, dissolution,
         termination, resignation, expulsion, withdrawal, death or incapacity of
         any Owner, shall not (x) operate to terminate this Agreement or the
         Trust, nor (y) entitle such Owner'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
         Property nor (z) otherwise affect the rights, obligations and
         liabilities of the parties hereto.

                                      -26-
<PAGE>   31

                           (b) Except as provided in Section 9.1(a), the
         Depositor shall not be entitled to revoke or terminate the Trust.

                           (c) Within five Business Days of receipt of notice of
         termination of the Trust given pursuant to Section 9.1(b) of the Sale
         and Servicing Agreement, to the extent such information has been
         provided to the Owner Trustee, the Owner Trustee shall mail written
         notice to each Certificateholder specifying (i) the Distribution Date
         upon which final payment of the Certificates shall be made upon
         presentation and surrender of Certificates at the office of the Paying
         Agent therein specified, (ii) the amount of any such final payment, and
         (iii) that the Record Date otherwise applicable to such Distribution
         Date is not applicable, payments being made only upon presentation and
         surrender of the Certificates at the office of the Paying Agent therein
         specified. The Owner Trustee shall give such notice to the Certificate
         Registrar at the time such notice is given to Certificateholders. In
         the event such notice is given, (i) the Indenture Trustee shall make
         deposits into the Certificate Distribution Account in accordance with
         Section 4.6 of the Sale and Servicing Agreement, or, (ii) in the case
         of an optional purchase of Receivables pursuant to Section 9.1 of the
         Sale and Servicing Agreement, the Indenture Trustee shall deposit the
         amount specified in Section 9.1 of the Sale and Servicing Agreement.
         Upon presentation and surrender of the Certificates, the Paying Agent
         shall cause to be distributed to Certificateholders amounts
         distributable on such Distribution Date pursuant to Section 5.2.

                           (d) In the event that all of the Certificateholders
         shall not surrender their 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 Certificates for cancellation and
         receive the final distribution with respect thereto. If within one year
         after the second notice all the Certificates shall not have been
         surrendered for cancellation, the Owner Trustee may take appropriate
         steps, or may appoint an agent to take appropriate steps, to contact
         the remaining Certificateholders concerning surrender of their
         Certificates, and the cost thereof shall be paid out of the funds and
         other assets that remain subject to this Agreement. Any funds which are
         payable to Certificateholders remaining in the Trust after 18 months
         following the initial notice shall be distributed by the Owner Trustee
         or the Paying Agent, as the case may be, to The United Way (but only
         upon termination of this Agreement), and the Certificateholders, by
         acceptance of their Certificates, hereby waive any rights with respect
         to such funds.

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

                                      -27-
<PAGE>   32

                                    ARTICLE X

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

                  SECTION 10.1. Eligibility Requirements for Owner Trustee. The
Owner Trustee shall at all times be a corporation (i) satisfying the provisions
of Section 3807(a) of the Business Trust Statute; (ii) authorized to exercise
corporate trust powers; (iii) having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by Federal or State
authorities; and (iv) having (or having a parent which has) a rating of at least
Baa3 by Moody's or A-1 by Standard & Poor's or is otherwise acceptable to the
Rating Agencies. If such corporation shall publish reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purpose of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the 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 10.2.

                  SECTION 10.2. 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 Depositor and the Servicer at
least 30 days before the date specified in such instrument. Upon receiving such
notice of resignation, the Depositor shall promptly appoint a successor Owner
Trustee meeting the qualifications set forth in Section 10.1 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.

                  If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 10.1 and shall fail to resign after
written request therefor by the Depositor 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 Depositor may remove the Owner Trustee. If the Depositor
shall remove the Owner Trustee under the authority of the immediately preceding
sentence, the Depositor shall promptly appoint a successor Owner Trustee meeting
the qualification requirements of Section 10.1 by written instrument, in
triplicate, one copy of which instrument shall be delivered to the outgoing
Owner Trustee so removed, and one copy to the successor Owner Trustee and
payment of 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 all fees and expenses, including
any indemnity payments, due to the outgoing Owner Trustee have been paid and
until acceptance of appointment by the successor Owner Trustee pursuant to
Section 10.3. The

                                      -28-
<PAGE>   33

Depositor shall provide notice of such resignation or removal of the Owner
Trustee to each of the Rating Agencies.

                  SECTION 10.3. Successor Owner Trustee. Any successor Owner
Trustee appointed pursuant to Section 10.2 shall execute, acknowledge and
deliver to the Depositor 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 deliver to the successor
Owner Trustee all documents and statements and monies held by it under this
Agreement; and the Depositor 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 10.1.

                  Upon acceptance of appointment by a successor Owner Trustee
pursuant to this Section, the Depositor shall mail notice of the successor of
such Owner Trustee to the Indenture Trustee, the Noteholders and the Rating
Agencies. If the Depositor shall fail to mail such notice within 10 days after
acceptance of appointment by the successor Owner Trustee, the successor Owner
Trustee shall cause such notice to be mailed at the expense of the Depositor. To
the extent required by the Delaware Business Trust Statute, any successor Owner
Trustee appointed hereunder shall promptly file an amendment to the Certificate
of Trust.

                  SECTION 10.4. Merger or Consolidation of Owner Trustee. Any
corporation into which the Owner Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Owner Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee
hereunder, provided such corporation shall be eligible pursuant to Section 10.1,
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,
and provided further that the Owner Trustee shall mail notice of such merger or
consolidation to the Rating Agencies.

                  SECTION 10.5. 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 Property 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 Owner Trustee to act as co-trustee, jointly with the Owner
Trustee, or separate trustee or separate trustees, of all or any part of

                                      -29-
<PAGE>   34

the Trust Property, and to vest in such Person, in such capacity, such title to
the Trust, or any part thereof, and, subject to the other provisions of this
Section, 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, shall have the power to
make such appointment. No co-trustee or separate trustee under this Agreement
shall be required to meet the terms of eligibility as a successor trustee
pursuant to Section 10.1 and no notice of the appointment of any co-trustee or
separate trustee shall be required pursuant to Section 10.1.

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

                           (i) all rights, powers, duties, and obligations
         conferred or imposed upon the Owner Trustee shall be conferred upon and
         exercised or performed by the Owner Trustee 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 Property
         or any portion thereof in any such jurisdiction) shall be exercised and
         performed singly by such separate trustee or co-trustee, but solely at
         the direction of the Owner Trustee;

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

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

                  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, 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,

                                      -30-
<PAGE>   35

rights, remedies and trusts shall vest in and be exercised by the Owner Trustee,
to the extent permitted by law, without the appointment of a new or successor
trustee.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  SECTION 11.1. Amendment.

                  (a) This Agreement may be amended by the Depositor and the
Owner Trustee (on behalf of the Certificateholders) but without the consent of
any of the Noteholders (i) to cure any ambiguity, or (ii) to correct, supplement
or modify any provisions in this Agreement; provided, however, that such
provisions or revisions: (A) only amend items that are administrative in nature,
(B) cannot change the substantive provisions effecting the terms of the Trust,
collecting cash proceeds from assets held, reinvesting proceeds from
collections, otherwise servicing the assets and distribution proceeds to the
Noteholders and (C) cannot be contrary to powers that are allowed for GAAP sales
treatment under existing accounting literature; and that such action shall not,
as evidenced by an Opinion of Counsel, adversely affect in any material respect
the interests of any Noteholder; provided, further, that any amendment within
the scope of Section 11.1(b)(i) or (ii) shall be deemed to materially and
adversely affect the interests of the Noteholders or the Certificateholders.

                  (b) This Agreement may also be amended from time to time by
the Depositor and the Owner Trustee and, if such amendment materially and
adversely affects the interests of Noteholders, the consent of a Note Majority
(which consent of any Holder of a Note given pursuant to this Section or
pursuant to any other provision of this Agreement shall be conclusive and
binding on such Holder and on all future Holders of such Note and of any Note
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon the Note) for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement, or of modifying in any manner the rights of the
Holders of Notes; provided, however, that, no such amendment shall (i) increase
or reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on Receivables or distributions that shall be required
to be made on any Note or the Class A-1 Interest Rate, the Class A-2 Interest
Rate, the Class A-3 Interest Rate, the Class M Interest Rate or the Class B
Interest Rate, or (ii) reduce the aforesaid percentage required to consent to
any such amendment or any waiver hereunder, without the consent of the Holders
of all Notes then outstanding.

                  (c) Prior to the execution of any such amendment or consent,
the Depositor shall furnish written notification of the substance of such
amendment or consent to each Rating Agency.

                  (d) 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 the Certificateholders and the Indenture Trustee
unless such parties have previously received such notification.

                                      -31-
<PAGE>   36

                  (e) It shall not be necessary for the consent of
Certificateholders and Noteholders pursuant to Section 11.1(b) 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 and Noteholders
provided for in this Agreement) shall be subject to such reasonable requirements
as the Owner Trustee may prescribe, including the establishment of record dates.

                  (f) Prior to the execution of any amendment to this Agreement,
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 to the execution and
delivery of such amendment have been satisfied. The Owner Trustee may, but shall
not be obligated to, enter into any such amendment which affects the Owner
Trustee's own rights, duties or immunities under this Agreement or otherwise.

                  SECTION 11.2. No Recourse. The Certificateholders by accepting
a Certificate acknowledges that such Certificateholder's Certificates represent
beneficial interests in the assets of the Trust only and do not represent
interests in or obligations of the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee, the Administrator or any Affiliate of any of the foregoing
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 Certificates or
the Related Documents.

                  SECTION 11.3. No Petition. To the extent permitted by law, the
Owner Trustee, by entering into this Trust Agreement, and each
Certificateholder, by accepting a Certificate, hereby covenant and agree that
they will not at any time institute against the Seller, the Issuer or the
Certificateholder, or join in or consent to any institution against the Seller,
the Issuer or the Certificateholder, 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 Certificates, this Trust Agreement or any of the
Related Documents.

                  SECTION 11.4. Governing Law. This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware without
regard to the principles of conflicts of laws thereof and the obligations,
rights and remedies of the parties under this Agreement shall be determined in
accordance with such laws.

                  SECTION 11.5. Severability of Provisions. If any one or more
of the covenants, agreements, provisions or terms of this Agreement shall be for
any reason whatsoever held invalid, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the Holders thereof.

                  SECTION 11.6. Certificates Nonassessable and Fully Paid.
Certificateholders shall not be personally liable for obligations of the Trust,
the fractional undivided beneficial interests in the

                                      -32-
<PAGE>   37

Trust represented by the Certificates shall be nonassessable for any losses or
expenses of the Trust or for any reason whatsoever, and Certificates upon
execution thereof by the Owner Trustee pursuant to Section 3.3 are and shall be
deemed fully paid; provided, however, that this Section 11.6 shall not affect in
any way the terms set forth in Article VIII hereof.

                  SECTION 11.7. Third-Party Beneficiaries. This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. Except as otherwise provided in
this Agreement, no other Person shall have any right or obligation hereunder.

                  SECTION 11.8. Counterparts. For the purpose of facilitating
its execution and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute but
one and the same instrument.

                  SECTION 11.9. Notices. All demands, notices and communications
under this Agreement shall be in writing, personally delivered or mailed by
certified mail-return receipt requested, and shall be deemed to have been duly
given upon receipt (a) in the case of the Depositor, at the following address:
290 East Carpenter Freeway, 7 Decker, Irving, Texas 75062, Attention: Assistant
General Counsel, with copies to Arcadia Financial Ltd., 2001 Beach Street, Suite
300, Fort Worth, Texas 76103, Attention: President, and Associates Corporation
of North America, 250 East Carpenter Freeway, Irving, Texas 75062, Attention:
Senior Vice President - Corporate Finance, (b) in the case of the Owner Trustee,
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890,
Attention: Corporate Trust Administration, (c) in the case of each Rating
Agency, 99 Church Street, New York, New York 10007 (for Moody's), and 55 Water
Street, New York, New York 10041, Attention: Asset-Backed Surveillance (for
Standard & Poor's), or at such other address as shall be designated by any such
party in a written notice to the other parties.

                                      -33-
<PAGE>   38

                  IN WITNESS WHEREOF, the Depositor and the Owner Trustee have
caused this Trust Agreement to be duly executed by their respective officers as
of the day and year first above written.

                                   ARCADIA RECEIVABLES FINANCE CORP.

                                    By:        /s/ Scott W. McCarthy
                                        ----------------------------------------
                                        By: Scott W. McCarthy
                                        Title: Senior Vice President

                                    WILMINGTON TRUST COMPANY

                                    By:        /s/ Anita Dallago
                                        ----------------------------------------
                                        Name: Anita Dallago
                                        Title: Financial Services Officer

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