Document:

Exhibit 10.4

                            MEDITECH PHARMACEUTICALS

                              INVESTMENT AGREEMENT

     THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES
     AND EXCHANGE COMMISSION OR ANY STATE OR OTHER SECURITIES AUTHORITIES. THEY
     MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
     STATEMENT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE FEDERAL
     AND STATE SECURITIES LAWS.

     THIS INVESTMENT AGREEMENT DOES NOT CONSTITUTE AN OFFER TO SELL, OR A
     SOLICITATION OF AN OFFER TO PURCHASE, ANY OF THE SECURITIES DESCRIBED
     HEREIN BY OR TO ANY PERSON IN ANY JURISDICTION IN WHICH SUCH OFFER OR
     SOLICITATION WOULD BE UNLAWFUL. THESE SECURITIES HAVE NOT BEEN RECOMMENDED
     BY ANY FEDERAL OR STATE SECURITIES AUTHORITIES, NOR HAVE SUCH AUTHORITIES
     CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY
     REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

     AN INVESTMENT IN THESE SECURITIES INVOLVES A HIGH DEGREE OF RISK. THE
     INVESTOR MUST RELY ON ITS OWN ANALYSIS OF THE INVESTMENT AND ASSESSMENT OF
     THE RISKS INVOLVED. SEE THE RISK FACTORS SET FORTH IN THE ATTACHED
     DISCLOSURE DOCUMENTS AS EXHIBIT J.

     SEE ADDITIONAL LEGENDS AT SECTIONS 4.7.

          THIS INVESTMENT AGREEMENT (this "Agreement" or "Investment Agreement")
is made as of the 30th day of June, 2000, by and between Meditech
Pharmaceuticals, Inc., a corporation duly organized and existing under the laws
of the State of Nevada (the "Company"), and the undersigned Investor executing
this Agreement ("Investor").

                                    RECITALS:

     WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue to the Investor, and the
Investor shall purchase from the Company, from time to time as provided herein,
shares of the Company's Common Stock, as part of an offering of Common Stock by
the Company to Investor, for a maximum aggregate offering amount of Thirty
Million Dollars ($30,000,000) (the "Maximum Offering Amount"); and

     WHEREAS, the solicitation of this Investment Agreement and, if accepted by
the Company, the offer and sale of the Common Stock are being made in reliance
upon the provisions of Regulation D ("Regulation D") promulgated under the Act,
Section 4(2) of the Act, and/or upon such other exemption from the registration

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requirements of the Act as may be available with respect to any or all of the
purchases of Common Stock to be made hereunder.

                                     TERMS:

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Certain Definitions. As used in this Agreement (including the recitals
above), the following terms shall have the following meanings (such meanings to
be equally applicable to both the singular and plural forms of the terms
defined):

     "20% Approval" shall have the meaning set forth in Section 5.25.

     "9.9% Limitation" shall have the meaning set forth in Section 2.3.1(f).

     "Accredited Investor" shall have the meaning set forth in Section 3.1.

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

     "Advance Put Notice" shall have the meaning set forth in Section 2.3.1(a),
the form of which is attached hereto as Exhibit E.

     "Advance Put Notice Confirmation" shall have the meaning set forth in
Section 2.3.1(a), the form of which is attached hereto as Exhibit F.

     "Advance Put Notice Date" shall have the meaning set forth in Section
2.3.1(a).

     "Affiliate" shall have the meaning as set forth Section 6.4.

     "Aggregate Issued Shares" equals the aggregate number of shares of Common
Stock issued to Investor pursuant to the terms of this Agreement or the
Registration Rights Agreement as of a given date, including Put Shares and
Warrant Shares.

     "Agreed Upon Procedures Report" shall have the meaning set forth in Section
2.5.3(b).

     "Agreement" shall mean this Investment Agreement.

     "Annual Non-Usage Fee" shall have the meaning set forth in Section 2.6.

     "Automatic Termination" shall have the meaning set forth in Section 2.3.2.

     "Bring Down Cold Comfort Letters" shall have the meaning set forth in
Section 2.3.6(b).

     "Business Day" shall mean any day during which the Principal Market is open
for trading.

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     "Calendar Month" shall mean the period of time beginning on the numeric day
in question in a calendar month and for Calendar Months thereafter, beginning on
the earlier of (i) the same numeric day of the next calendar month or (ii) the
last day of the next calendar month. Each Calendar Month shall end on the day
immediately preceding the beginning of the next succeeding Calendar Month.

     "Cap Amount" shall have the meaning set forth in Section 2.3.10.

     "Capital Raising Limitations" shall have the meaning set forth in Section
6.5.1.

     "Capitalization Schedule" shall have the meaning set forth in Section
3.2.4, attached hereto as Exhibit K.

     "Closing" shall mean one of (i) the Investment Commitment Closing and (ii)
each closing of a purchase and sale of Common Stock pursuant to Section 2.

     "Closing Bid Price" means, for any security as of any date, the last
closing bid price for such security during Normal Trading on the O.T.C. Bulletin
Board, or, if the O.T.C. Bulletin Board is not the principal securities exchange
or trading market for such security, the last closing bid price during Normal
Trading of such security on the principal securities exchange or trading market
where such security is listed or traded as reported by such principal securities
exchange or trading market, or if the foregoing do not apply, the last closing
bid price during Normal Trading of such security in the over-the-counter market
on the electronic bulletin board for such security, or, if no closing bid price
is reported for such security, the average of the bid prices of any market
makers for such security as reported in the "pink sheets" by the National
Quotation Bureau, Inc. If the Closing Bid Price cannot be calculated for such
security on such date on any of the foregoing bases, the Closing Bid Price of
such security on such date shall be the fair market value as mutually determined
by the Company and the Investor in this Offering. If the Company and the
Investor in this Offering are unable to agree upon the fair market value of the
Common Stock, then such dispute shall be resolved by an investment banking firm
mutually acceptable to the Company and the Investor in this offering and any
fees and costs associated therewith shall be paid by the Company.
Notwithstanding the above, if the closing bid price on the applicable exchange
or market (i) is not associated with a trade or is associated with a trade of
2,000 or fewer shares of Common Stock or $1,000 or less worth of Common Stock,
whichever is less, and (ii) is less than 90% of the immediately preceding bid
price on that exchange or market, then "Closing Bid Price" shall be deemed to
mean such immediately preceding bid price.

     "Commitment Evaluation Period" shall have the meaning set forth in Section
2.6.

     "Commitment Warrants" shall have the meaning set forth in Section 2.4.1,
the form of which is attached hereto as Exhibit U.

     "Commitment Warrant Exercise Price" shall have the meaning set forth in
Section 2.4.1.

     "Common Shares" shall mean the shares of Common Stock of the Company.

     "Common Stock" shall mean the common stock of the Company.

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     "Company" shall mean Meditech Pharmaceuticals, a corporation duly organized
and existing under the laws of the State of Nevada.

     "Company Designated Maximum Put Dollar Amount" shall have the meaning set
forth in Section 2.3.1(a).

     "Company Designated Minimum Put Share Price" shall have the meaning set
forth in Section 2.3.1(a).

     "Company Termination" shall have the meaning set forth in Section 2.3.12.

     "Conditions to Investor's Obligations" shall have the meaning as set forth
in Section 2.2.2.

     "Delisting Event" shall mean any time during the term of this Investment
Agreement, that the Company's Common Stock is not listed for and actively
trading on the O.T.C. Bulletin Board, the Nasdaq Small Cap Market, the Nasdaq
National Market, the American Stock Exchange, or the New York Stock Exchange or
is suspended or delisted with respect to the trading of the shares of Common
Stock on such market or exchange.

     "Disclosure Documents" shall have the meaning as set forth in Section
3.2.4.

     "Due Diligence Review" shall have the meaning as set forth in Section 2.5.

     "Effective Date" shall have the meaning set forth in Section 2.3.1.

     "Equity Securities" shall have the meaning set forth in Section 6.5.1.

     "Evaluation Day" shall have the meaning set forth in Section 2.3.1(b).

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

     "Excluded Day" shall have the meaning set forth in Section 2.3.1(b).

     "Extended Put Period" shall mean the period of time between the Advance Put
Notice Date until the Pricing Period End Date.

     "Impermissible Put Cancellation" shall have the meaning set forth in
Section 2.3.1(e).

     "Indemnified Liabilities" shall have the meaning set forth in Section 9.

     "Indemnities" shall have the meaning set forth in Section 9.

     "Indemnitor" shall have the meaning set forth in Section 9.

     "Individual Put Limit" shall have the meaning set forth in Section 2.3.1
(b).

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     "Ineffective Period" shall mean any period of time that the Registration
Statement or any Supplemental Registration Statement (each as defined in the
Registration Rights Agreement) becomes ineffective or unavailable for use for
the sale or resale, as applicable, of any or all of the Registrable Securities
(as defined in the Registration Rights Agreement) for any reason (or in the
event the prospectus under either of the above is not current and deliverable)
during any time period required under the Registration Rights Agreement.

     "Intended Put Share Amount" shall have the meaning set forth in Section
2.3.1(a).

     "Investment Commitment Closing" shall have the meaning set forth in Section
2.2.1.

     "Investment Agreement" shall mean this Investment Agreement.

     "Investment Commitment Opinion of Counsel" shall mean an opinion from
Company's independent counsel, substantially in the form attached as Exhibit B,
or such other form as agreed upon by the parties, as to the Investment
Commitment Closing.

     "Investment Date" shall mean the date of the Investment Commitment Closing.

     "Investor" shall have the meaning set forth in the preamble hereto.

     "Key Employee" shall have the meaning set forth in Section 5.17, as set
forth in Exhibit N.

     "Late Payment Amount" shall have the meaning set forth in Section 2.3.8.

     "Legend" shall have the meaning set forth in Section 4.7.

     "Major Transaction" shall mean and shall be deemed to have occurred at such
time upon any of the following events:

     (i) a consolidation, merger or other business combination or event or
transaction following which the holders of Common Stock of the Company
immediately preceding such consolidation, merger, combination or event either
(i) no longer hold a majority of the shares of Common Stock of the Company or
(ii) no longer have the ability to elect the board of directors of the Company
(a "Change of Control"); provided, however, that if the other entity involved in
such consolidation, merger, combination or event is a publicly traded company
with "Substantially Similar Trading Characteristics" (as defined below) as the
Company and the holders of Common Stock are to receive solely Common Stock or no
consideration (if the Company is the surviving entity) or solely common stock of
such other entity (if such other entity is the surviving entity), such
transaction shall not be deemed to be a Major Transaction (provided the
surviving entity, if other than the Company, shall have agreed to assume all
obligations of the Company under this Agreement and the Registration Rights
Agreement). For purposes hereof, an entity shall have Substantially Similar
Trading Characteristics as the Company if the average daily dollar Trading
Volume of the common stock of such entity is equal to or in excess of $500,000
for the 90th through the 31st day prior to the public announcement of such
transaction;

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          (ii) the sale or transfer of all or substantially all of the Company's
assets; or

          (iii) a purchase, tender or exchange offer made to the holders of
outstanding shares of Common Stock, such that following such purchase, tender or
exchange offer a Change of Control shall have occurred.

     "Market Price" shall equal the lowest Closing Bid Price for the Common
Stock on the Principal Market during the Pricing Period for the applicable Put.

     "Material Facts" shall have the meaning set forth in Section 2.3.6(a).

     "Maximum Put Dollar Amount" shall mean the lesser of (i) the Company
Designated Maximum Put Dollar Amount, if any, specified by the Company in a Put
Notice, and (ii) $2 million.

     "Maximum Offering Amount" shall mean have the meaning set forth in the
recitals hereto.

     "NASD" shall have the meaning set forth in Section 6.9.

     "Nasdaq 20% Rule" shall have the meaning set forth in Section 2.3.10.

     "Normal Trading" shall mean trading that occurs between 9:30 AM and 4:00
PM, New York City Time, on any Business Day, and shall expressly exclude "after
hours" trading.

     "Numeric Day" shall mean the numerical day of the month of the Investment
Date or the last day of the calendar month in question, whichever is less.

     "NYSE" shall have the meaning set forth in Section 6.9.

     "Offering" shall mean the Company's offering of Common Stock and Warrants
issued under this Investment Agreement.

     "Officer's Certificate" shall mean a certificate, signed by an officer of
the Company, to the effect that the representations and warranties of the
Company in this Agreement required to be true for the applicable Closing are
true and correct in all material respects and all of the conditions and
limitations set forth in this Agreement for the applicable Closing are
satisfied.

     "Opinion of Counsel" shall mean, as applicable, the Investment Commitment
Opinion of Counsel, the Put Opinion of Counsel, and the Registration Opinion.

     "Payment Due Date" shall have the meaning set forth in Section 2.3.8.

     "Pricing Period" shall mean, unless otherwise shortened under the terms of
this Agreement, the period beginning on the Business Day immediately following
the Put Date and ending on and including the date which is 20 Business Days
after such Put Date.

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     "Pricing Period End Date" shall mean the last Business Day of any Pricing
Period.

     "Principal Market" shall mean the O.T.C. Bulletin Board, the Nasdaq Small
Cap Market, the Nasdaq National Market, the American Stock Exchange or the New
York Stock Exchange, whichever is at the time the principal trading exchange or
market for the Common Stock.

     "Proceeding" shall have the meaning as set forth Section 5.1.

     "Purchase" shall have the meaning set forth in Section 2.3.7.

     "Purchase Warrant Exercise Price" shall have the meaning set forth in
Section 2.4.2.

     "Purchase Warrants" shall have the meaning set forth in Section 2.4.2, the
form of which is attached hereto as Exhibit D.

     "Put" shall have the meaning set forth in Section 2.3.1(d).

     "Put Cancellation" shall have the meaning set forth in Section 2.3.11(a).

     "Put Cancellation Date" shall have the meaning set forth in Section
2.3.11(a).

     "Put Cancellation Notice" shall have the meaning set forth in Section
2.3.11(a), the form of which is attached hereto as Exhibit Q.

     "Put Cancellation Notice Confirmation" shall have the meaning set forth in
Section 2.3.11(c), the form of which is attached hereto as Exhibit S.

     "Put Closing" shall have the meaning set forth in Section 2.3.8.

     "Put Closing Date" shall have the meaning set forth in Section 2.3.8.

     "Put Date" shall mean the date that is specified by the Company in any Put
Notice for which the Company intends to exercise a Put under Section 2.3.1,
unless the Put Date is postponed pursuant to the terms hereof, in which case the
"Put Date" is such postponed date.

     "Put Dollar Amount" shall be determined by multiplying the Put Share Amount
by the respective Put Share Prices with respect to such Put Shares, subject to
the limitations herein.

     "Put Notice" shall have the meaning set forth in Section 2.3.1(d), the form
of which is attached hereto as Exhibit G.

     "Put Notice Confirmation" shall have the meaning set forth in Section
2.3.1(d), the form of which is attached hereto as Exhibit H.

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     "Put Opinion of Counsel" shall mean an opinion from Company's independent
counsel, in the form attached as Exhibit I, or such other form as agreed upon by
the parties, as to any Put Closing.

     "Put Share Amount" shall have the meaning as set forth Section 2.3.1(b).

     "Put Share Price" shall have the meaning set forth in Section 2.3.1(c).

     "Put Shares" shall mean shares of Common Stock that are purchased by the
Investor pursuant to a Put.

     "Registrable Securities" shall have the meaning as set forth in the
Registration Rights Agreement.

     "Registration Opinion" shall have the meaning set forth in Section
2.3.6(a), the form of which is attached hereto as Exhibit R.

     "Registration Opinion Deadline" shall have the meaning set forth in Section
2.3.6(a).

     "Registration Rights Agreement" shall mean that certain registration rights
agreement entered into by the Company and Investor on even date herewith, in the
form attached hereto as Exhibit A, or such other form as agreed upon by the
parties.

     "Registration Statement" shall have the meaning as set forth in the
Registration Rights Agreement.

     "Regulation D" shall have the meaning set forth in the recitals hereto.

     "Reporting Issuer" shall have the meaning set forth in Section 6.2.

     "Restrictive Legend" shall have the meaning set forth in Section 4.7.

     "Required Put Documents" shall have the meaning set forth in Section 2.3.5.

     "Right of First Refusal" shall have the meaning set forth in Section 6.5.2.

     "Risk Factors" shall have the meaning set forth in Section 3.2.4,
attached hereto as Exhibit J.

     "Schedule of Exceptions" shall have the meaning set forth in Section 5, and
is attached hereto as Exhibit C.

     "SEC" shall mean the Securities and Exchange Commission.

     "Securities" shall mean this Investment Agreement, together with the Common
Stock of the Company, the Warrants and the Warrant Shares issuable pursuant to
this Investment Agreement.

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     "Share Authorization Increase Approval" shall have the meaning set forth in
Section 5.25.

     "Stockholder 20% Approval" shall have the meaning set forth in Section
6.11.

     "Supplemental Registration Statement" shall have the meaning set forth in
the Registration Rights Agreement.

     "Term" shall mean the term of this Agreement, which shall be a period of
time beginning on the date of this Agreement and ending on the Termination Date.

     "Termination Date" shall mean the earlier of (i) the date that is three (3)
years after the Effective Date, or (ii) the date that is thirty (30) Business
Days after the later of (a) the Put Closing Date on which the sum of the
aggregate Put Share Price for all Put Shares equal the Maximum Offering Amount,
(b) the date that the Company has delivered a Termination Notice to the
Investor, (c) the date of an Automatic Termination, and (d) the date that all of
the Warrants have been exercised.

     "Termination Fee" shall have the meaning as set forth in Section 2.6.

     "Termination Notice" shall have the meaning as set forth in Section 2.3.12.

     "Third Party Report" shall have the meaning set forth in Section 3.2.4.

     "Trading Volume " shall mean the volume of shares of the Company's Common
Stock that trade between 9:30 AM and 4:00 PM, New York City Time, on any
Business Day, and shall expressly exclude any shares trading during "after
hours" trading.

     "Transaction Documents" shall have the meaning set forth in Section 9.

     "Transfer Agent" shall have the meaning set forth in Section 6.10.

     "Transfer Agent Instructions" shall mean the Company's instructions to its
transfer agent, substantially in the form attached as Exhibit T, or such other
form as agreed upon by the parties.

     "Trigger Price" shall have the meaning set forth in Section 2.3.1(b).

     "Truncated Pricing Period" shall have the meaning set forth in Section
2.3.11(d).

     "Truncated Put Share Amount" shall have the meaning set forth in Section
2.3.11(b).

     "Unlegended Share Certificates" shall mean a certificate or certificates
(or electronically delivered shares, as appropriate) (in denominations as
instructed by Investor) representing the shares of Common Stock to which the
Investor is then entitled to receive, registered in the name of Investor or its
nominee (as instructed by Investor) and not containing a restrictive legend or

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stop transfer order, including but not limited to the Put Shares for the
applicable Put and Warrant Shares.

     "Use of Proceeds Schedule" shall have the meaning as set forth in Section
3.2.4, attached hereto as Exhibit L.

     "Volume Limitations" shall have the meaning set forth in Section 2.3.1(b).

     "Warrant Shares" shall mean the Common Stock issued or issuable upon
exercise of the Warrants.

     "Warrants" shall mean Purchase Warrants and Commitment Warrants.

     2. Purchase and Sale of Common Stock.

        2.1 Offer to Subscribe.
            ------------------

        Subject to the terms and conditions herein and the satisfaction of the
conditions to closing set forth in Sections 2.2 and 2.3 below, Investor hereby
agrees to purchase such amounts of Common Stock and accompanying Warrants as the
Company may, in its sole and absolute discretion, from time to time elect to
issue and sell to Investor according to one or more Puts pursuant to Section 2.3
below.

        2.2     Investment Commitment.
                ---------------------

                2.2.1 Investment Commitment Closing. The closing of this
Agreement (the "Investment Commitment Closing") shall be deemed to occur when
this Agreement and the Registration Rights Agreement have been executed by both
Investor and the Company, the Transfer Agent Instructions have been executed by
both the Company and the Transfer Agent, and the other Conditions to Investor's
Obligations set forth in Section 2.2.2 below have been met.

                2.2.2 Conditions to Investor's Obligations. As a prerequisite to
the Investment Commitment Closing and the Investor's obligations hereunder, all
of the following (the "Conditions to Investor's Obligations") shall have been
satisfied prior to or concurrently with the Company's execution and delivery of
this Agreement:

        (a)     the following documents shall have been delivered to the
                Investor: (i) the Registration Rights Agreement (executed by the
                Company and Investor), (ii) the Investment Commitment Opinion of
                Counsel (signed by the Company's counsel), (iii) the Transfer
                Agent Instructions (executed by the Company and the Transfer
                Agent), and (iv) a Secretary's Certificate as to (A) the
                resolutions of the Company's board of directors authorizing this
                transaction, (B) the Company's Certificate of Incorporation, and
                (C) the Company's Bylaws;

        (b)     this Investment Agreement, accepted by the Company, shall have
                been received by the Investor;

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        (c)     the Company's Common Stock shall be listed for trading and
                actually trading on the O.T.C. Bulletin Board, the Nasdaq Small
                Cap Market, the Nasdaq National Market, the American Stock
                Exchange or the New York Stock Exchange;

        (d)     other than continuing losses described in the Risk Factors set
                forth in the Disclosure Documents (provided for in Section
                3.2.4), as of the Closing there have been no material adverse
                changes in the Company's business prospects or financial
                condition since the date of the last balance sheet included in
                the Disclosure Documents, including but not limited to incurring
                material liabilities; and

        (e)     the representations and warranties of the Company in this
                Agreement shall be true and correct in all material respects and
                the conditions to Investor's obligations set forth in this
                Section 2.2.2 shall have been satisfied as of such Closing; and
                the Company shall deliver an Officer's Certificate, signed by an
                officer of the Company, to such effect to the Investor.

        2.3 Puts of Common Shares to the Investor.

                2.3.1 Procedure to Exercise a Put. Subject to the Individual Put
Limit, the Maximum Offering Amount and the Cap Amount (if applicable), and the
other conditions and limitations set forth in this Agreement, at any time
beginning on the date on which the Registration Statement is declared effective
by the SEC (the "Effective Date"), the Company may, in its sole and absolute
discretion, elect to exercise one or more Puts according to the following
procedure, provided that each subsequent Put Date after the first Put Date shall
be no sooner than five (5) Business Days following the preceding Pricing Period
End Date:

                    (a) Delivery of Advance Put Notice. At least ten (10)
Business Days but not more than twenty (20) Business Days prior to any intended
Put Date (unless otherwise agreed in writing by the Investor), the Company shall
deliver advance written notice (the "Advance Put Notice," the form of which is
attached hereto as Exhibit E, the date of such Advance Put Notice being the
"Advance Put Notice Date") to Investor stating the Put Date for which the
Company shall, subject to the limitations and restrictions contained herein,
exercise a Put and stating the number of shares of Common Stock (subject to the
Individual Put Limit and the Maximum Put Dollar Amount) which the Company
intends to sell to the Investor for the Put (the "Intended Put Share Amount").

     The Company may, at its option, also designate in any Advance Put Notice
(i) a maximum dollar amount of Common Stock, not to exceed $2,000,000, which it
shall sell to Investor during the Put (the "Company Designated Maximum Put
Dollar Amount") and/or (ii) a minimum purchase price per Put Share at which the
Investor may purchase shares of Common Stock pursuant to such Put Notice (a
"Company Designated Minimum Put Share Price"). The Company Designated Minimum
Put Share Price, if applicable, shall be no greater than 80% of the Closing Bid
Price of the Company's common stock on the Advance Put Notice Date. The Company
may decrease (but not increase) the Company Designated Minimum Put Share Price

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for a Put at any time by giving the Investor written notice of such decrease not
later than 12:00 Noon, New York City time, on the Business Day immediately
preceding the Business Day that such decrease is to take effect. A decrease in
the Company Designated Minimum Put Share Price shall have no retroactive effect
on the determination of Trigger Prices and Excluded Days for days preceding the
Business Day that such decrease takes effect.

     Notwithstanding the above, if, at the time of delivery of an Advance Put
Notice, more than two (2) Calendar Months have passed since the date of the
previous Put Closing, such Advance Put Notice shall provide at least twenty (20)
Business Days notice of the intended Put Date, unless waived in writing by the
Investor. In order to effect delivery of the Advance Put Notice, the Company
shall (i) send the Advance Put Notice by facsimile on such date so that such
notice is received by the Investor by 6:00 p.m., New York, NY time, and (ii)
surrender such notice on such date to a courier for overnight delivery to the
Investor (or two (2) day delivery in the case of an Investor residing outside of
the U.S.). Upon receipt by the Investor of a facsimile copy of the Advance Put
Notice, the Investor shall, within two (2) Business Days, send, via facsimile, a
confirmation of receipt (the "Advance Put Notice Confirmation," the form of
which is attached hereto as Exhibit F) of the Advance Put Notice to the Company
specifying that the Advance Put Notice has been received and affirming the
intended Put Date and the Intended Put Share Amount.

                    (b) Put Share Amount. The "Put Share Amount" is the number
of shares of Common Stock that the Investor shall be obligated to purchase in a
given Put, and shall equal the lesser of (a.) the Intended Put Share Amount, and
(b.) the Individual Put Limit. The "Individual Put Limit" shall equal the lesser
of (i) 1,500,000 shares (ii) 15% of the sum of the aggregate daily reported
Trading Volumes in the outstanding Common Stock on the Company's Principal
Market, excluding any block trades of "N" (as defined below) or more shares of
Common Stock, for all Evaluation Days (as defined below) in the Pricing Period,
(iii) the number of Put Shares which, when multiplied by their respective Put
Share Prices, equals the Maximum Put Dollar Amount, and (iv) the 9.9%
Limitation, but in no event shall the Individual Put Limit exceed 15% of the sum
of the aggregate daily reported Trading Volumes in the outstanding Common Stock
on the Company's Principal Market, excluding any block trades of " or more
shares of Common Stock, for the twenty (20) Business Days immediately preceding
the Put Date (this limitation, together with the limitation in (a) immediately
above, are collectively referred to herein as the "Volume Limitations"). Company
agrees not to trade Common Stock or arrange for Common Stock to be traded for
the purpose of artificially increasing the Volume Limitations. For purposes of
this paragraph, "N" shall equal 35,000 shares for any day where the Closing Bid
Price for the immediately preceding Business Day is $1.00 or less, and "N" shall
equal 20,000 shares for any day where the Closing Bid Price for the immediately
preceding Business Day is greater than $1.00.

     For purposes of this Agreement:

          "Trigger Price" for any Pricing Period shall mean the greater of (i)
the Company Designated Minimum Put Share Price, plus $0.075, or (ii) the Company
Designated Minimum Put Share Price divided by .91.

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          An "Excluded Day" shall mean each Business Day during a Pricing Period
where the lowest intra-day trading price of the Common Stock is less than the
Trigger Price.

          An "Evaluation Day" shall mean each Business Day during a Pricing
Period that is not an Excluded Day.

                    (c) Put Share Price. The purchase price for the Put Shares
(the "Put Share Price") shall equal the lesser of (i) the Market Price for such
Put, minus $0.075, or (ii) 91% of the Market Price for such Put, but shall in no
event be less than the Company Designated Minimum Put Share Price for such Put,
if applicable.

                    (d) Delivery of Put Notice. After delivery of an Advance Put
Notice, on the Put Date specified in the Advance Put Notice the Company shall
deliver written notice (the "Put Notice," the form of which is attached hereto
as Exhibit G) to Investor stating (i) the Put Date, (ii) the Intended Put Share
Amount as specified in the Advance Put Notice (such exercise a "Put"), (iii) the
Company Designated Maximum Put Dollar Amount (if applicable), and (iv) the
Company Designated Minimum Put Share Price (if applicable). In order to effect
delivery of the Put Notice, the Company shall (i) send the Put Notice by
facsimile on the Put Date so that such notice is received by the Investor by
6:00 p.m., New York, NY time, and (ii) surrender such notice on the Put Date to
a courier for overnight delivery to the Investor (or two (2) day delivery in the
case of an Investor residing outside of the U.S.). Upon receipt by the Investor
of a facsimile copy of the Put Notice, the Investor shall, within two (2)
Business Days, send, via facsimile, a confirmation of receipt (the "Put Notice
Confirmation," the form of which is attached hereto as Exhibit H) of the Put
Notice to Company specifying that the Put Notice has been received and affirming
the Put Date and the Intended Put Share Amount.

                    (e) Delivery of Required Put Documents. On or before the Put
Date for such Put, the Company shall deliver the Required Put Documents (as
defined in Section 2.3.5 below) to the Investor (or to an agent of Investor, if
Investor so directs). Unless otherwise specified by the Investor, the Put Shares
of Common Stock shall be transmitted electronically pursuant to such electronic
delivery system as the Investor shall request; otherwise delivery shall be by
physical certificates. If the Company has not delivered all of the Required Put
Documents to the Investor on or before the Put Date, the Put shall be
automatically cancelled, unless the Investor agrees to delay the Put Date by up
to three (3) Business Days, in which case the Pricing Period begins on the
Business Day following such new Put Date. If the Company has not delivered all
of the Required Put Documents to the Investor on or before the Put Date (or new
Put Date, if applicable), and the Investor has not agreed in writing to delay
the Put Date, the Put is automatically canceled (an "Impermissible Put
Cancellation") and, unless the Put was otherwise canceled in accordance with the
terms of Section 2.3.11, the Company shall pay the Investor $2,000 for its
reasonable due diligence expenses incurred in preparation for the canceled Put
and the Company may deliver an Advance Put Notice for the subsequent Put no
sooner than ten (10) Business Days after the date that such Put was canceled,
unless otherwise agreed by the Investor.

                    (f) Limitation on Investor's Obligation to Purchase Shares.
Notwithstanding anything to the contrary in this Agreement, in no event shall
the Investor be required to purchase, and an Intended Put Share Amount may not

                                       13

<PAGE>

include, an amount of Put Shares, which when added to the number of Put Shares
acquired by the Investor pursuant to this Agreement during the 31 days preceding
the Put Date with respect to which this determination of the permitted Intended
Put Share Amount is being made, would exceed 9.99% of the number of shares of
Common Stock outstanding (on a fully diluted basis, to the extent that inclusion
of unissued shares is mandated by Section 13(d) of the Exchange Act) on the Put
Date for such Pricing Period, as determined in accordance with Section 13(d) of
the Exchange Act (the "Section 13(d) Outstanding Share Amount"). Each Put Notice
shall include a representation of the Company as to the Section 13(d)
Outstanding Share Amount on the related Put Date. In the event that the Section
13(d) Outstanding Share Amount is different on any date during a Pricing Period
than on the Put Date associated with such Pricing Period, then the number of
shares of Common Stock outstanding on such date during such Pricing Period shall
govern for purposes of determining whether the Investor, when aggregating all
purchases of Shares made pursuant to this Agreement in the 31 calendar days
preceding such date, would have acquired more than 9.99% of the Section 13(d)
Outstanding Share Amount. The limitation set forth in this Section 2.3.1(f) is
referred to as the "9.9% Limitation."

                2.3.2 Termination of Right to Put. The Company's right to
require the Investor to purchase any subsequent Put Shares shall terminate
permanently (each, an "Automatic Termination") upon the occurrence of any of the
following:

                    (a) the Company shall not exercise a Put or any Put
thereafter if, at any time, either the Company or any director or executive
officer of the Company has engaged in a transaction or conduct related to the
Company that has resulted in (i) a Securities and Exchange Commission
enforcement action, or (ii) a civil judgment or criminal conviction for fraud or
misrepresentation, or for any other offense that, if prosecuted criminally,
would constitute a felony under applicable law;

                    (b) the Company shall not exercise a Put or any Put
thereafter, on any date after a cumulative time period or series of time
periods, including both Ineffective Periods and Delisting Events, that lasts for
an aggregate of four (4) months;

                    (c) the Company shall not exercise a Put or any Put
thereafter if at any time the Company has filed for and/or is subject to any
bankruptcy, insolvency, reorganization or liquidation proceedings or other
proceedings for relief under any bankruptcy law or any law for the relief of
debtors instituted by or against the Company or any subsidiary of the Company;

                    (d) the Company shall not exercise a Put after the sooner of
(i) the date that is three (3) years after the Effective Date, or (ii) the Put
Closing Date on which the aggregate of the Put Dollar Amounts for all Puts equal
the Maximum Offering Amount; and

                    (e) the Company shall not exercise a Put after the Company
has breached any covenant in Section 2.6, Section 6, or Section 9 hereof.

                                       14

<PAGE>

                    (f) if no Registration Statement has been declared effective
by the date that is one (1) year after the date of this Agreement, the Automatic
Termination shall occur on the date that is one (1) year after the date of this
Agreement.

                2.3.3 Put Limitations. The Company's right to exercise a Put
shall be limited as follows:

                    (a) notwithstanding the amount of any Put, the Investor
shall not be obligated to purchase any additional Put Shares once the aggregate
Put Dollar Amount paid by Investor equals the Maximum Offering Amount;

                    (b) the Investor shall not be obligated to acquire and pay
for the Put Shares with respect to any Put for which the Company has announced a
subdivision or combination, including a reverse split, of its Common Stock or
has subdivided or combined its Common Stock during the Extended Put Period;

                    (c) the Investor shall not be obligated to acquire and pay
for the Put Shares with respect to any Put for which the Company has paid a
dividend of its Common Stock or has made any other distribution of its Common
Stock during the Extended Put Period;

                    (d) the Investor shall not be obligated to acquire and pay
for the Put Shares with respect to any Put for which the Company has made,
during the Extended Put Period, a distribution of all or any portion of its
assets or evidences of indebtedness to the holders of its Common Stock;

                    (e) the Investor shall not be obligated to acquire and pay
for the Put Shares with respect to any Put for which a Major Transaction has
occurred during the Extended Put Period.

                2.3.4 Conditions Precedent to the Right of the Company to
Deliver an Advance Put Notice or a Put Notice and the Obligation of the Investor
to Purchase Put Shares. The right of the Company to deliver an Advance Put
Notice or a Put Notice and the obligation of the Investor hereunder to acquire
and pay for the Put Shares incident to a Closing is subject to the satisfaction,
on (i) the date of delivery of such Advance Put Notice or Put Notice and (ii)
the applicable Put Closing Date, of each of the following conditions:

        (a)     the Company's Common Stock shall be listed for and actively
                trading on the O.T.C. Bulletin Board, the Nasdaq Small Cap
                Market, the Nasdaq National Market or the New York Stock
                Exchange and the Put Shares shall be so listed, and to the
                Company's knowledge there is no notice of any suspension or
                delisting with respect to the trading of the shares of Common
                Stock on such market or exchange;

        (b)     the Company shall have satisfied any and all obligations
                pursuant to the Registration Rights Agreement, including, but
                not limited to, the filing of the Registration Statement with
                the SEC with respect to the resale of all Registrable Securities

                                       15

<PAGE>

                and the requirement that the Registration Statement shall have
                been declared effective by the SEC for the resale of all
                Registrable Securities and the Company shall have satisfied and
                shall be in compliance with any and all obligations pursuant to
                this Agreement and the Warrants;

        (c)     the representations and warranties of the Company are true and
                correct in all material respects as if made on such date and the
                conditions to Investor's obligations set forth in this Section
                2.3.4 are satisfied as of such Closing, and the Company shall
                deliver a certificate, signed by an officer of the Company, to
                such effect to the Investor;

        (d)     the Company shall have reserved for issuance a sufficient number
                of Common Shares for the purpose of enabling the Company to
                satisfy any obligation to issue Common Shares pursuant to any
                Put and to effect exercise of the Warrants;

        (e)     the Registration Statement is not subject to an Ineffective
                Period as defined in the Registration Rights Agreement, the
                prospectus included therein is current and deliverable, and to
                the Company's knowledge there is no notice of any investigation
                or inquiry concerning any stop order with respect to the
                Registration Statement; and

        (f)     if the Aggregate Issued Shares after the Closing of the Put
                would exceed the Cap Amount, the Company shall have obtained the
                Stockholder 20% Approval as specified in Section 6.11, if the
                Company's Common Stock is listed on the NASDAQ Small Cap Market
                or NMS, and such approval is required by the rules of the
                NASDAQ.

                2.3.5 Documents Required to be Delivered on the Put Date as
Conditions to Closing of any Put. The Closing of any Put and Investor's
obligations hereunder shall additionally be conditioned upon the delivery to the
Investor of each of the following (the "Required Put Documents") on or before
the applicable Put Date:

                    (a) a number of Unlegended Share Certificates (or freely
tradeable electronically delivered shares, as appropriate) equal to the Intended
Put Share Amount, in denominations of not more than 50,000 shares per
certificate;

                    (b) the following documents: Put Opinion of Counsel,
Officer's Certificate, Put Notice, Registration Opinion, and any report or
disclosure required under Section 2.3.6 or Section 2.5;

                    (c) all documents, instruments and other writings required
to be delivered on or before the Put Date pursuant to any provision of this
Agreement in order to implement and effect the transactions contemplated herein.

                                       16

<PAGE>

                2.3.6 Accountant's Letter and Registration Opinion.

                    (a) The Company shall have caused to be delivered to the
Investor, (i) whenever required by Section 2.3.6(b) or by Section 2.5.3, and
(ii) on the date that is three (3) Business Days prior to each Put Date (the
"Registration Opinion Deadline"), an opinion of the Company's independent
counsel, in substantially the form of Exhibit R (the "Registration Opinion"),
addressed to the Investor stating, inter alia, that no facts ("Material Facts")
have come to such counsel's attention that have caused it to believe that the
Registration Statement is subject to an Ineffective Period or to believe that
the Registration Statement, any Supplemental Registration Statement (as each may
be amended, if applicable), and any related prospectuses, contain an untrue
statement of material fact or omits a material fact required to make the
statements contained therein, in light of the circumstances under which they
were made, not misleading. If a Registration Opinion cannot be delivered by the
Company's independent counsel to the Investor on the Registration Opinion
Deadline due to the existence of Material Facts or an Ineffective Period, the
Company shall promptly notify the Investor and as promptly as possible amend
each of the Registration Statement and any Supplemental Registration Statements,
as applicable, and any related prospectus or cause such Ineffective Period to
terminate, as the case may be, and deliver such Registration Opinion and updated
prospectus as soon as possible thereafter. If at any time after a Put Notice
shall have been delivered to Investor but before the related Pricing Period End
Date, the Company acquires knowledge of such Material Facts or any Ineffective
Period occurs, the Company shall promptly notify the Investor and shall deliver
a Put Cancellation Notice to the Investor pursuant to Section 2.3.11 by
facsimile and overnight courier by the end of that Business Day.

                    (b) (i) the Company shall engage its independent auditors to
perform the procedures in accordance with the provisions of Statement on
Auditing Standards No. 71, as amended, as agreed to by the parties hereto, and
reports thereon (the "Bring Down Cold Comfort Letters") as shall have been
reasonably requested by the Investor with respect to certain financial
information contained in the Registration Statement and shall have delivered to
the Investor such a report addressed to the Investor, on the date that is three
(3) Business Days prior to each Put Date.

                        (ii) in the event that the Investor shall have requested
delivery of an Agreed Upon Procedures Report pursuant to Section 2.5.3, the
Company shall engage its independent auditors to perform certain agreed upon
procedures and report thereon as shall have been reasonably requested by the
Investor with respect to certain financial information of the Company and the
Company shall deliver to the Investor a copy of such report addressed to the
Investor. In the event that the report required by this Section 2.3.6(b) cannot
be delivered by the Company's independent auditors, the Company shall, if
necessary, promptly revise the Registration Statement and the Company shall not
deliver a Put Notice until such report is delivered.

                2.3.7 Investor's Obligation and Right to Purchase Shares.
Subject to the conditions set forth in this Agreement, following the Investor's
receipt of a validly delivered Put Notice, the Investor shall be required to
purchase (each a "Purchase") from the Company a number of Put Shares equal to
the Put Share Amount, in the manner described below.

                                       17

<PAGE>

                2.3.8 Mechanics of Put Closing. Each of the Company and the
Investor shall deliver all documents, instruments and writings required to be
delivered by either of them pursuant to this Agreement at or prior to each
Closing. Subject to such delivery and the satisfaction of the conditions set
forth in Sections 2.3.4 and 2.3.5, the closing of the purchase by the Investor
of Shares shall occur by 5:00 PM, New York City Time, on the date which is five
(5) Business Days following the applicable Pricing Period End Date (or such
other time or later date as is mutually agreed to by the Company and the
Investor) (the "Payment Due Date") at the offices of Investor. On each or before
each Payment Due Date, the Investor shall deliver to the Company, in the manner
specified in Section 8 below, the Put Dollar Amount to be paid for such Put
Shares, determined as aforesaid. The closing (each a "Put Closing") for each Put
shall occur on the date that both (i) the Company has delivered to the Investor
all Required Put Documents, and (ii) the Investor has delivered to the Company
such Put Dollar Amount and any Late Payment Amount, if applicable (each a "Put
Closing Date").

     If the Investor does not deliver to the Company the Put Dollar Amount for
such Put Closing on or before the Payment Due Date, then the Investor shall pay
to the Company, in addition to the Put Dollar Amount, an amount (the "Late
Payment Amount") at a rate of X% per month, accruing daily, multiplied by such
Put Dollar Amount, where "X" equals one percent (1%) for the first month
following the date in question, and increases by an additional one percent (1%)
for each month that passes after the date in question, up to a maximum of five
percent (5%) per month; provided, however, that in no event shall the amount of
interest that shall become due and payable hereunder exceed the maximum amount
permissible under applicable law.

                2.3.9 Limitation on Short Sales. The Investor and its Affiliates
shall not engage in short sales of the Company's Common Stock; provided,
however, that the Investor may enter into any short exempt sale or any short
sale or other hedging or similar arrangement it deems appropriate with respect
to Put Shares after it receives a Put Notice with respect to such Put Shares so
long as such sales or arrangements do not involve more than the number of such
Put Shares specified in the Put Notice.

                2.3.10 Cap Amount. If the Company becomes listed on the Nasdaq
Small Cap Market or the Nasdaq National Market, then, unless the Company has
obtained Stockholder 20% Approval as set forth in Section 6.11 or unless
otherwise permitted by Nasdaq, in no event shall the Aggregate Issued Shares
exceed the maximum number of shares of Common Stock (the "Cap Amount") that the
Company can, without stockholder approval, so issue pursuant to Nasdaq Rule
4460(i)(1)(d)(ii) (or any other applicable Nasdaq Rules or any successor rule)
(the "Nasdaq 20% Rule").

                2.3.11 Put Cancellation.

                    (a) Mechanics of Put Cancellation. If at any time during a
Pricing Period the Company discovers the existence of Material Facts or any
Ineffective Period or Delisting Event occurs, the Company shall cancel the Put
(a "Put Cancellation"), by delivering written notice to the Investor (the "Put
Cancellation Notice"), attached as Exhibit Q, by facsimile and overnight
courier. The "Put Cancellation Date" shall be the date that the Put Cancellation
Notice is first received by the Investor, if such notice is received by the
Investor by 6:00 p.m., New York, NY time, and shall be the following date, if
such notice is received by the Investor after 6:00 p.m., New York, NY time.

                                       18

<PAGE>

                    (b) Effect of Put Cancellation. Anytime a Put Cancellation
Notice is delivered to Investor after the Put Date, the Put, shall remain
effective with respect to a number of Put Shares (the "Truncated Put Share
Amount") equal to the Individual Put Limit for the Truncated Pricing Period.

                    (c) Put Cancellation Notice Confirmation. Upon receipt by
the Investor of a facsimile copy of the Put Cancellation Notice, the Investor
shall promptly send, via facsimile, a confirmation of receipt (the "Put
Cancellation Notice Confirmation," a form of which is attached as Exhibit S) of
the Put Cancellation Notice to the Company specifying that the Put Cancellation
Notice has been received and affirming the Put Cancellation Date.

                    (d) Truncated Pricing Period. If a Put Cancellation Notice
has been delivered to the Investor after the Put Date, the Pricing Period for
such Put shall end at on the close of trading on the last full trading day on
the Principal Market that ends prior to the moment of initial delivery of the
Put Cancellation Notice (a "Truncated Pricing Period") to the Investor.

                2.3.12 Investment Agreement Cancellation. The Company may
terminate (a "Company Termination") its right to initiate future Puts by
providing written notice ("Termination Notice") to the Investor, by facsimile
and overnight courier, at any time other than during an Extended Put Period,
provided that such termination shall have no effect on the parties' other rights
and obligations under this Agreement, the Registration Rights Agreement or the
Warrants. Notwithstanding the above, any cancellation occurring during an
Extended Put Period is governed by Section 2.3.11.

                2.3.13 Return of Excess Common Shares. In the event that the
number of Shares purchased by the Investor pursuant to its obligations hereunder
is less than the Intended Put Share Amount, the Investor shall promptly return
to the Company any shares of Common Stock in the Investor's possession that are
not being purchased by the Investor.

         2.4 Warrants.

                2.4.1 Commitment Warrants. In partial consideration hereof,
following the execution of the Letter of Agreement dated on or about May 16,
2000 between the Company and the Investor, the Company issued and delivered to
Investor or its designated assignees, warrants (the "Commitment Warrants") in
the form attached hereto as Exhibit U, or such other form as agreed upon by the
parties, to purchase 7,000,000 shares of Common Stock. Each Commitment Warrant
shall be immediately exercisable in accordance with its terms, and shall have a
term beginning on the date of issuance and ending on date that is five (5) years
thereafter. The Warrant Shares shall be registered for resale pursuant to the
Registration Rights Agreement. The Investment Commitment Opinion of Counsel
shall cover the issuance of the Commitment Warrant and the issuance of the
common stock upon exercise of the Commitment Warrant.

                                       19

<PAGE>

         Notwithstanding  any  Termination  or  Automatic  Termination  of  this
Agreement,  regardless of whether or not the Registration Statement is or is not
filed, and regardless of whether or not the  Registration  Statement is approved
or denied by the SEC, the Investor shall retain full ownership of the Commitment
Warrant as partial consideration for its commitment hereunder.

                2.4.2 Purchase Warrants. Within five (5) Business Days of the
end of each Pricing Period, the Company shall issue and deliver to the Investor
a warrant ("Purchase Warrant"), in the form attached hereto as Exhibit D, or
such other form as agreed upon by the parties, to purchase a number of shares of
Common Stock equal to 10% of the Put Share Amount for that Put. Each Purchase
Warrant shall be exerciseable at a price (the "Purchase Warrant Exercise Price")
which shall initially equal 110% of the Market Price for the applicable Put, and
shall have semi-annual reset provisions. Each Purchase Warrant shall be
immediately exercisable at the Purchase Warrant Exercise Price, and shall have a
term beginning on the date of issuance and ending on the date that is five (5)
years thereafter. The Warrant Shares shall be registered for resale pursuant to
the Registration Rights Agreement.

                2.5 Due Diligence Review. The Company shall make available for
inspection and review by the Investor (the "Due Diligence Review"), advisors to
and representatives of the Investor (who may or may not be affiliated with the
Investor and who are reasonably acceptable to the Company), any underwriter
participating in any disposition of Common Stock on behalf of the Investor
pursuant to the Registration Statement, any Supplemental Registration Statement,
or amendments or supplements thereto or any blue sky, NASD or other filing, all
financial and other records, all filings with the SEC, and all other corporate
documents and properties of the Company as may be reasonably necessary for the
purpose of such review, and cause the Company's officers, directors and
employees to supply all such information reasonably requested by the Investor or
any such representative, advisor or underwriter in connection with such
Registration Statement (including, without limitation, in response to all
questions and other inquiries reasonably made or submitted by any of them),
prior to and from time to time after the filing and effectiveness of the
Registration Statement for the sole purpose of enabling the Investor and such
representatives, advisors and underwriters and their respective accountants and
attorneys to conduct initial and ongoing due diligence with respect to the
Company and the accuracy of the Registration Statement.

                2.5.1 Treatment of Nonpublic Information. The Company shall not
disclose nonpublic information to the Investor or to its advisors or
representatives unless prior to disclosure of such information the Company
identifies such information as being nonpublic information and provides the
Investor and such advisors and representatives with the opportunity to accept or
refuse to accept such nonpublic information for review. The Company may, as a
condition to disclosing any nonpublic information hereunder, require the
Investor and its advisors and representatives to enter into a confidentiality
agreement (including an agreement with such advisors and representatives
prohibiting them from trading in Common Stock during such period of time as they
are in possession of nonpublic information) in form reasonably satisfactory to
the Company and the Investor.

                                       20

<PAGE>

     Nothing herein shall require the Company to disclose nonpublic information
to the Investor or its advisors or representatives, and the Company represents
that it does not disseminate nonpublic information to any investors who purchase
stock in the Company in a public offering, to money managers or to securities
analysts, provided, however, that notwithstanding anything herein to the
contrary, the Company will, as hereinabove provided, immediately notify the
advisors and representatives of the Investor and, if any, underwriters, of any
event or the existence of any circumstance (without any obligation to disclose
the specific event or circumstance) of which it becomes aware, constituting
nonpublic information (whether or not requested of the Company specifically or
generally during the course of due diligence by and such persons or entities),
which, if not disclosed in the Prospectus included in the Registration
Statement, would cause such Prospectus to include a material misstatement or to
omit a material fact required to be stated therein in order to make the
statements therein, in light of the circumstances in which they were made, not
misleading. Nothing contained in this Section 2.5 shall be construed to mean
that such persons or entities other than the Investor (without the written
consent of the Investor prior to disclosure of such information) may not obtain
nonpublic information in the course of conducting due diligence in accordance
with the terms of this Agreement; provided, however, that in no event shall the
Investor's advisors or representatives disclose to the Investor the nature of
the specific event or circumstances constituting any nonpublic information
discovered by such advisors or representatives in the course of their due
diligence without the written consent of the Investor prior to disclosure of
such information.

                2.5.2 Disclosure of Misstatements and Omissions. The Investor's
advisors or representatives shall make complete disclosure to the Investor's
counsel of all events or circumstances constituting nonpublic information
discovered by such advisors or representatives in the course of their due
diligence upon which such advisors or representatives form the opinion that the
Registration Statement contains an untrue statement of a material fact or omits
a material fact required to be stated in the Registration Statement or necessary
to make the statements contained therein, in the light of the circumstances in
which they were made, not misleading. Upon receipt of such disclosure, the
Investor's counsel shall consult with the Company's independent counsel in order
to address the concern raised as to the existence of a material misstatement or
omission and to discuss appropriate disclosure with respect thereto; provided,
however, that such consultation shall not constitute the advice of the Company's
independent counsel to the Investor as to the accuracy of the Registration
Statement and related Prospectus.

                2.5.3 Procedure if Material Facts are Reasonably Believed to be
Untrue or are Omitted. In the event after such consultation the Investor or the
Investor's counsel reasonably believes that the Registration Statement contains
an untrue statement or a material fact or omits a material fact required to be
stated in the Registration Statement or necessary to make the statements
contained therein, in light of the circumstances in which they were made, not
misleading,

                    (a) the Company shall file with the SEC an amendment to the
Registration Statement responsive to such alleged untrue statement or omission
and provide the Investor, as promptly as practicable, with copies of the
Registration Statement and related Prospectus, as so amended, or

                                       21

<PAGE>

                    (b) if the Company disputes the existence of any such
material misstatement or omission, (i) the Company's independent counsel shall
provide the Investor's counsel with a Registration Opinion and (ii) in the event
the dispute relates to the adequacy of financial disclosure and the Investor
shall reasonably request, the Company's independent auditors shall provide to
the Company a letter ("Agreed Upon Procedures Report") outlining the performance
of such "agreed upon procedures" as shall be reasonably requested by the
Investor and the Company shall provide the Investor with a copy of such letter.

         2.6 Commitment Payments.

     On the last Business Day of each yearly period following the Effective Date
(each such period a "Commitment Evaluation Period"), if the Company has not Put
at least $1,000,000 in aggregate Put Dollar Amount during that Commitment
Evaluation Period, the Company, in consideration of Investor's commitment costs,
including, but not limited to, due diligence expenses, shall pay to the Investor
an amount (the "Annual Non-Usage Fee") equal to the difference of (i) $100,000,
minus (ii) 10% of the aggregate Put Dollar Amount of the Put Shares put to
Investor during that Commitment Evaluation Period. In the event that the Company
delivers a Termination Notice to the Investor or an Automatic Termination
occurs, the Company shall pay to the Investor (the "Termination Fee") the
greater of (i) the Annual Non-Usage Fee for the applicable Commitment Evaluation
Period, or (ii) the difference of (x) $100,000, minus (y) 10% of the aggregate
Put Dollar Amount of the Put Shares put to Investor during all Puts to date, and
the Company shall not be required to pay the Annual Non-Usage Fee thereafter.
Notwithstanding the above, each Annual Non-Usage Fee will be reduced by $10,000
for each Put during the applicable Commitment Evaluation Period where the number
of shares specified in the Put Notice equals or exceeds the Volume Limitations
for that Put. If the Company Puts in excess of $1,000,000 in aggregate Put
Dollar Amount during a Commitment Evaluation Period (the amount in excess of
$1,000,000 being referred to as the "Carryover Amount"), then the Annual
Non-Usage Fee, if any, for the immediately following Commitment Evaluation
Period shall be reduced by an amount equal to the Carryover Amount divided by
ten (10).

     Each Annual Non-Usage Fee or Termination Fee is payable, in cash, within
five (5) business days of the date it accrued. The Company shall not be required
to deliver any payments to Investor under this subsection until Investor has
paid all Put Dollar Amounts that are then due.

     3. Representations, Warranties and Covenants of Investor. Investor hereby
represents and warrants to and agrees with the Company as follows:

        3.1 Accredited Investor. Investor is an accredited investor ("Accredited
Investor"), as defined in Rule 501 of Regulation D, and has checked the
applicable box set forth in Section 10 of this Agreement.

        3.2 Investment Experience; Access to Information; Independent
Investigation.

                3.2.1 Access to Information. Investor or Investor's professional
advisor has been granted the opportunity to ask questions of and receive answers
from representatives of the Company, its officers, directors, employees and
agents concerning the terms and conditions of this Offering, the Company and its

                                       22

<PAGE>

business and prospects, and to obtain any additional information which Investor
or Investor's professional advisor deems necessary to verify the accuracy and
completeness of the information received.

                3.2.2 Reliance on Own Advisors. Investor has relied completely
on the advice of, or has consulted with, Investor's own personal tax,
investment, legal or other advisors and has not relied on the Company or any of
its affiliates, officers, directors, attorneys, accountants or any affiliates of
any thereof and each other person, if any, who controls any of the foregoing,
within the meaning of Section 15 of the Act for any tax or legal advice (other
than reliance on information in the Disclosure Documents as defined in Section
3.2.4 below and on the Opinion of Counsel). The foregoing, however, does not
limit or modify Investor's right to rely upon covenants, representations and
warranties of the Company in this Agreement.

                3.2.3 Capability to Evaluate. Investor has such knowledge and
experience in financial and business matters so as to enable such Investor to
utilize the information made available to it in connection with the Offering in
order to evaluate the merits and risks of the prospective investment, which are
substantial, including without limitation those set forth in the Disclosure
Documents (as defined in Section 3.2.4 below).

                3.2.4 Disclosure Documents. Investor, in making Investor's
investment decision to subscribe for the Investment Agreement hereunder,
represents that (a) Investor has received and had an opportunity to review (i)
the Company's Annual Report on Form 10-KSB for the year ended May 31, 1999, (ii)
the Company's quarterly report on Form 10-QSB for the quarters ended February
30, 2000, (iii) the Risk Factors, attached as Exhibit J, (the "Risk Factors")
(iv) the Capitalization Schedule, attached as Exhibit K, (the "Capitalization
Schedule") and (v) the Use of Proceeds Schedule, attached as Exhibit L, (the
"Use of Proceeds Schedule"); (b) Investor has read, reviewed, and relied solely
on the documents described in (a) above, the Company's representations and
warranties and other information in this Agreement, including the exhibits,
documents prepared by the Company which have been specifically provided to
Investor in connection with this Offering (the documents described in this
Section 3.2.4 (a) and (b) are collectively referred to as the "Disclosure
Documents"), and an independent investigation made by Investor and Investor's
representatives, if any; (c) Investor has, prior to the date of this Agreement,
been given an opportunity to review material contracts and documents of the
Company which have been filed as exhibits to the Company's filings under the Act
and the Exchange Act and has had an opportunity to ask questions of and receive
answers from the Company's officers and directors; and (d) is not relying on any
oral representation of the Company or any other person, nor any written
representation or assurance from the Company other than those contained in the
Disclosure Documents or incorporated herein or therein. The foregoing, however,
does not limit or modify Investor's right to rely upon covenants,
representations and warranties of the Company in Sections 5 and 6 of this
Agreement. Investor acknowledges and agrees that the Company has no
responsibility for, does not ratify, and is under no responsibility whatsoever
to comment upon or correct any reports, analyses or other comments made about
the Company by any third parties, including, but not limited to, analysts'
research reports or comments (collectively, "Third Party Reports"), and Investor
has not relied upon any Third Party Reports in making the decision to invest.

                3.2.5 Investment Experience; Fend for Self. Investor has
substantial experience in investing in securities and it has made investments in
securities other than those of the Company. Investor acknowledges that Investor

                                       23

<PAGE>

is able to fend for Investor's self in the transaction contemplated by this
Agreement, that Investor has the ability to bear the economic risk of Investor's
investment pursuant to this Agreement and that Investor is an "Accredited
Investor" by virtue of the fact that Investor meets the investor qualification
standards set forth in Section 3.1 above. Investor has not been organized for
the purpose of investing in securities of the Company, although such investment
is consistent with Investor's purposes.

         3.3  Exempt Offering Under Regulation D.

                3.3.1 No General Solicitation. The Investment Agreement was not
offered to Investor through, and Investor is not aware of, any form of general
solicitation or general advertising, including, without limitation, (i) any
advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, and
(ii) any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising.

                3.3.2 Restricted Securities. Investor understands that the
Investment Agreement is, the Common Stock and Warrants issued at each Put
Closing will be, and the Warrant Shares will be, characterized as "restricted
securities" under the federal securities laws inasmuch as they are being
acquired from the Company in a transaction exempt from the registration
requirements of the federal securities laws and that under such laws and
applicable regulations such securities may not be transferred or resold without
registration under the Act or pursuant to an exemption therefrom. In this
connection, Investor represents that Investor is familiar with Rule 144 under
the Act, as presently in effect, and understands the resale limitations imposed
thereby and by the Act.

                3.3.3 Disposition. Without in any way limiting the
representations set forth above, Investor agrees that until the Securities are
sold pursuant to an effective Registration Statement or an exemption from
registration, they will remain in the name of Investor and will not be
transferred to or assigned to any broker, dealer or depositary. Investor further
agrees not to sell, transfer, assign, or pledge the Securities (except for any
bona fide pledge arrangement to the extent that such pledge does not require
registration under the Act or unless an exemption from such registration is
available and provided further that if such pledge is realized upon, any
transfer to the pledgee shall comply with the requirements set forth herein), or
to otherwise dispose of all or any portion of the Securities unless and until:

                    (a) There is then in effect a registration statement under
the Act and any applicable state securities laws covering such proposed
disposition and such disposition is made in accordance with such registration
statement and in compliance with applicable prospectus delivery requirements; or

                    (b) (i) Investor shall have notified the Company of the
proposed disposition and shall have furnished the Company with a statement of
the circumstances surrounding the proposed disposition to the extent relevant
for determination of the availability of an exemption from registration, and
(ii) if reasonably requested by the Company, Investor shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that
such disposition will not require registration of the Securities under the Act

                                       24

<PAGE>

or state securities laws. It is agreed that the Company will not require the
Investor to provide opinions of counsel for transactions made pursuant to Rule
144 provided that Investor and Investor's broker, if necessary, provide the
Company with the necessary representations for counsel to the Company to issue
an opinion with respect to such transaction.

          The Investor is entering into this Agreement for its own account and
the Investor has no present arrangement (whether or not legally binding) at any
time to sell the Common Stock to or through any person or entity; provided,
however, that by making the representations herein, the Investor does not agree
to hold the Common Stock for any minimum or other specific term and reserves the
right to dispose of the Common Stock at any time in accordance with federal and
state securities laws applicable to such disposition.

          3.4 Due Authorization.

                3.4.1 Authority. The person executing this Investment Agreement,
if executing this Agreement in a representative or fiduciary capacity, has full
power and authority to execute and deliver this Agreement and each other
document included herein for which a signature is required in such capacity and
on behalf of the subscribing individual, partnership, trust, estate, corporation
or other entity for whom or which Investor is executing this Agreement. Investor
has reached the age of majority (if an individual) according to the laws of the
state in which he or she resides.

                3.4.2 Due Authorization. Investor is duly and validly organized,
validly existing and in good standing as a limited liability company under the
laws of Georgia with full power and authority to purchase the Securities to be
purchased by Investor and to execute and deliver this Agreement.

                3.4.3 Partnerships. If Investor is a partnership, the
representations, warranties, agreements and understandings set forth above are
true with respect to all partners of Investor (and if any such partner is itself
a partnership, all persons holding an interest in such partnership, directly or
indirectly, including through one or more partnerships), and the person
executing this Agreement has made due inquiry to determine the truthfulness of
the representations and warranties made hereby.

                3.4.4 Representatives. If Investor is purchasing in a
representative or fiduciary capacity, the representations and warranties shall
be deemed to have been made on behalf of the person or persons for whom Investor
is so purchasing.

    4.    Acknowledgments     Investor is aware that:

          4.1 Risks of Investment. Investor recognizes that an investment in the
Company involves substantial risks, including the potential loss of Investor's
entire investment herein. Investor recognizes that the Disclosure Documents,
this Agreement and the exhibits hereto do not purport to contain all the
information, which would be contained in a registration statement under the Act;

                                       25

<PAGE>

          4.2 No Government Approval. No federal or state agency has passed upon
the Securities, recommended or endorsed the Offering, or made any finding or
determination as to the fairness of this transaction;

          4.3 No Registration, Restrictions on Transfer. As of the date of this
Agreement, the Securities and any component thereof have not been registered
under the Act or any applicable state securities laws by reason of exemptions
from the registration requirements of the Act and such laws, and may not be
sold, pledged (except for any limited pledge in connection with a margin account
of Investor to the extent that such pledge does not require registration under
the Act or unless an exemption from such registration is available and provided
further that if such pledge is realized upon, any transfer to the pledgee shall
comply with the requirements set forth herein), assigned or otherwise disposed
of in the absence of an effective registration of the Securities and any
component thereof under the Act or unless an exemption from such registration is
available;

          4.4 Restrictions on Transfer. Investor may not attempt to sell,
transfer, assign, pledge or otherwise dispose of all or any portion of the
Securities or any component thereof in the absence of either an effective
registration statement or an exemption from the registration requirements of the
Act and applicable state securities laws;

          4.5 No Assurances of Registration. There can be no assurance that any
registration statement will become effective at the scheduled time, or ever, or
remain effective when required, and Investor acknowledges that it may be
required to bear the economic risk of Investor's investment for an indefinite
period of time;

          4.6 Exempt Transaction. Investor understands that the Securities are
being offered and sold in reliance on specific exemptions from the registration
requirements of federal and state law and that the representations, warranties,
agreements, acknowledgments and understandings set forth herein are being relied
upon by the Company in determining the applicability of such exemptions and the
suitability of Investor to acquire such Securities.

          4.7 Legends. The certificates representing the Put Shares shall not
bear a legend restricting the sale of transfer thereof ("Restrictive Legend").
The certificates representing the Warrant Shares shall not bear a Restrictive
Legend unless they are issued at a time when the Registration Statement is not
effective for resale. It is understood that the certificates evidencing any
Warrant Shares issued at a time when the Registration Statement is not effective
for resale, subject to legend removal under the terms of Section 6.8 below,
shall bear the following legend (the "Legend"):

     "The securities represented hereby have not been registered under the
     Securities Act of 1933, as amended, or applicable state securities laws,
     nor the securities laws of any other jurisdiction. They may not be sold or
     transferred in the absence of an effective registration statement under
     those securities laws or pursuant to an exemption therefrom."

                                       26

<PAGE>

     5. Representations and Warranties of the Company. The Company hereby makes
the following representations and warranties to Investor (which shall be true at
the signing of this Agreement, and as of any such later date as contemplated
hereunder) and agrees with Investor that, except as set forth in the "Schedule
of Exceptions" attached hereto as Exhibit C:

          5.1 Organization, Good Standing, and Qualification. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada, USA and has all requisite corporate power and authority
to carry on its business as now conducted and as proposed to be conducted. The
Company is duly qualified to transact business and is in good standing in each
jurisdiction in which the failure to so qualify would have a material adverse
effect on the business or properties of the Company and its subsidiaries taken
as a whole. The Company is not the subject of any pending, threatened or, to its
knowledge, contemplated investigation or administrative or legal proceeding (a
"Proceeding") by the Internal Revenue Service, the taxing authorities of any
state or local jurisdiction, or the Securities and Exchange Commission, The
National Association of Securities Dealer, Inc., The Nasdaq Stock Market, Inc.
or any state securities commission, or any other governmental entity, which have
not been disclosed in the Disclosure Documents. None of the disclosed
Proceedings, if any, will have a material adverse effect upon the Company or the
market for the Common Stock. The Company has the following subsidiaries:

          5.2 Corporate Condition. The Company's condition is, in all material
respects, as described in the Disclosure Documents (as further set forth in any
subsequently filed Disclosure Documents, if applicable), except for changes in
the ordinary course of business and normal year-end adjustments that are not, in
the aggregate, materially adverse to the Company. Except for continuing losses,
there have been no material adverse changes to the Company's business, financial
condition, or prospects since the dates of such Disclosure Documents. The
financial statements as contained in the 10-KSB and 10-QSB have been prepared in
accordance with generally accepted accounting principles, consistently applied
(except as otherwise permitted by Regulation S-X of the Exchange Act), subject,
in the case of unaudited interim financial statements, to customary year end
adjustments and the absence of certain footnotes, and fairly present the
financial condition of the Company as of the dates of the balance sheets
included therein and the consolidated results of its operations and cash flows
for the periods then ended,. Without limiting the foregoing, there are no
material liabilities, contingent or actual, that are not disclosed in the
Disclosure Documents (other than liabilities incurred by the Company in the
ordinary course of its business, consistent with its past practice, after the
period covered by the Disclosure Documents). The Company has paid all material
taxes that are due, except for taxes that it reasonably disputes. There is no
material claim, litigation, or administrative proceeding pending or, to the best
of the Company's knowledge, threatened against the Company, except as disclosed
in the Disclosure Documents. This Agreement and the Disclosure Documents do not
contain any untrue statement of a material fact and do not omit to state any
material fact required to be stated therein or herein necessary to make the
statements contained therein or herein not misleading in the light of the
circumstances under which they were made. No event or circumstance exists
relating to the Company which, under applicable law, requires public disclosure
but which has not been so publicly announced or disclosed.

          5.3 Authorization. All corporate action on the part of the Company by
its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Agreement, the performance of all obligations of

                                       27

<PAGE>

the Company hereunder and the authorization, issuance and delivery of the Common
Stock being sold hereunder and the issuance (and/or the reservation for
issuance) of the Warrants and the Warrant Shares have been taken, and this
Agreement and the Registration Rights Agreement constitute valid and legally
binding obligations of the Company, enforceable in accordance with their terms,
except insofar as the enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, or other similar laws affecting creditors' rights
generally or by principles governing the availability of equitable remedies. The
Company has obtained all consents and approvals required for it to execute,
deliver and perform each agreement referenced in the previous sentence.

          5.4 Valid Issuance of Common Stock. The Common Stock and the Warrants,
when issued, sold and delivered in accordance with the terms hereof, for the
consideration expressed herein, will be validly issued, fully paid and
nonassessable and, based in part upon the representations of Investor in this
Agreement, will be issued in compliance with all applicable U.S. federal and
state securities laws. The Warrant Shares, when issued in accordance with the
terms of the Warrants, shall be duly and validly issued and outstanding, fully
paid and nonassessable, and based in part on the representations and warranties
of Investor, will be issued in compliance with all applicable U.S. federal and
state securities laws. The Put Shares, the Warrants and the Warrant Shares will
be issued free of any preemptive rights.

          5.5 Compliance with Other Instruments. The Company is not in violation
or default of any provisions of its Certificate of Incorporation or Bylaws, each
as amended and in effect on and as of the date of the Agreement, or of any
material provision of any material instrument or material contract to which it
is a party or by which it is bound or of any provision of any federal or state
judgment, writ, decree, order, statute, rule or governmental regulation
applicable to the Company, which would have a material adverse effect on the
Company's business or prospects, or on the performance of its obligations under
this Agreement or the Registration Rights Agreement. The execution, delivery and
performance of this Agreement and the other agreements entered into in
conjunction with the Offering and the consummation of the transactions
contemplated hereby and thereby will not (a) result in any such violation or be
in conflict with or constitute, with or without the passage of time and giving
of notice, either a default under any such provision, instrument or contract or
an event which results in the creation of any lien, charge or encumbrance upon
any assets of the Company, which would have a material adverse effect on the
Company's business or prospects, or on the performance of its obligations under
this Agreement, the Registration Rights Agreement, or (b) violate the Company's
Certificate of Incorporation or By-Laws or (c) violate any statute, rule or
governmental regulation applicable to the Company which violation would have a
material adverse effect on the Company's business or prospects.

          5.6 Reporting Company. The Company is subject to the reporting
requirements of the Exchange Act, has a class of securities registered under
Section 12 of the Exchange Act, and has filed all reports required by the
Exchange Act since the date the Company first became subject to such reporting
obligations. The Company undertakes to furnish Investor with copies of such
reports as may be reasonably requested by Investor prior to consummation of this
Offering and thereafter, to make such reports available, for the full term of
this Agreement, including any extensions thereof, and for as long as Investor
holds the Securities. The Common Stock is duly listed or approved for quotation
on the O.T.C. Bulletin Board. The Company is not in violation of the listing

                                       28

<PAGE>

requirements of the O.T.C. Bulletin Board and does not reasonably anticipate
that the Common Stock will be delisted by the O.T.C. Bulletin Board for the
foreseeable future. The Company has filed all reports required under the
Exchange Act. The Company has not furnished to the Investor any material
nonpublic information concerning the Company.

          5.7 Capitalization. The capitalization of the Company as of the date
hereof, is, and the capitalization as of the Closing, subject to exercise of any
outstanding warrants and/or exercise of any outstanding stock options, after
taking into account the offering of the Securities contemplated by this
Agreement and all other share issuances occurring prior to this Offering, will
be, as set forth in the Capitalization Schedule as set forth in Exhibit K. There
are no securities or instruments containing anti-dilution or similar provisions
that will be triggered by the issuance of the Securities. Except as disclosed in
the Capitalization Schedule, as of the date of this Agreement, (i) there are no
outstanding options, warrants, scrip, rights to subscribe for, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into or exercisable or exchangeable for, any shares of capital stock
of the Company or any of its subsidiaries, or arrangements by which the Company
or any of its subsidiaries is or may become bound to issue additional shares of
capital stock of the Company or any of its subsidiaries, and (ii) there are no
agreements or arrangements under which the Company or any of its subsidiaries is
obligated to register the sale of any of its or their securities under the Act
(except the Registration Rights Agreement).

          5.8 Intellectual Property. The Company has valid, unrestricted and
exclusive ownership of or rights to use the patents, trademarks, trademark
registrations, trade names, copyrights, know-how, technology and other
intellectual property necessary to the conduct of its business. Exhibit M lists
all patents, trademarks, trademark registrations, trade names and copyrights of
the Company. The Company has granted such licenses or has assigned or otherwise
transferred a portion of (or all of) such valid, unrestricted and exclusive
patents, trademarks, trademark registrations, trade names, copyrights, know-how,
technology and other intellectual property necessary to the conduct of its
business as set forth in Exhibit M. The Company has been granted licenses,
know-how, technology and/or other intellectual property necessary to the conduct
of its business as set forth in Exhibit M. To the best of the Company's
knowledge after due inquiry, the Company is not infringing on the intellectual
property rights of any third party, nor is any third party infringing on the
Company's intellectual property rights. There are no restrictions in any
agreements, licenses, franchises, or other instruments that preclude the Company
from engaging in its business as presently conducted.

          5.9 Use of Proceeds. As of the date hereof, the Company expects to use
the proceeds from this Offering (less fees and expenses) for the purposes and in
the approximate amounts set forth on the Use of Proceeds Schedule set forth as
Exhibit L hereto. These purposes and amounts are estimates and are subject to
change without notice to any Investor.

          5.10 No Rights of Participation. No person or entity, including, but
not limited to, current or former stockholders of the Company, underwriters,
brokers, agents or other third parties, has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in
the financing contemplated by this Agreement which has not been waived.

                                       29

<PAGE>

          5.11 Company Acknowledgment. The Company hereby acknowledges that
Investor may elect to hold the Securities for various periods of time, as
permitted by the terms of this Agreement, the Warrants, and other agreements
contemplated hereby, and the Company further acknowledges that Investor has made
no representations or warranties, either written or oral, as to how long the
Securities will be held by Investor or regarding Investor's trading history or
investment strategies.

          5.12 No Advance Regulatory Approval. The Company acknowledges that
this Investment Agreement, the transaction contemplated hereby and the
Registration Statement contemplated hereby have not been approved by the SEC, or
any other regulatory body and there is no guarantee that this Investment
Agreement, the transaction contemplated hereby and the Registration Statement
contemplated hereby will ever be approved by the SEC or any other regulatory
body. The Company is relying on its own analysis and is not relying on any
representation by Investor that either this Investment Agreement, the
transaction contemplated hereby or the Registration Statement contemplated
hereby has been or will be approved by the SEC or other appropriate regulatory
body.

          5.13 Underwriter's Fees and Rights of First Refusal. The Company is
not obligated to pay any compensation or other fees, costs or related
expenditures in cash or securities to any underwriter, broker, agent or other
representative other than the Investor in connection with this Offering.

          5.14 Availability of Suitable Form for Registration. The Company is
currently eligible and agrees to maintain its eligibility to register the resale
of its Common Stock on a registration statement on a suitable form under the
Act.

          5.15 No Integrated Offering. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any of the Company's securities or
solicited any offers to buy any security under circumstances that would prevent
the parties hereto from consummating the transactions contemplated hereby
pursuant to an exemption from registration under Regulation D of the Act or
would require the issuance of any other securities to be integrated with this
Offering under the Rules of the SEC. The Company has not engaged in any form of
general solicitation or advertising in connection with the offering of the
Common Stock or the Warrants.

          5.16 Foreign Corrupt Practices. Neither the Company, nor any of its
subsidiaries, nor any director, officer, agent, employee or other person acting
on behalf of the Company or any subsidiary has, in the course of its actions
for, or on behalf of, the Company, used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to
political activity; made any direct or indirect unlawful payment to any foreign
or domestic government official or employee from corporate funds; violated or is
in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977,
as amended; or made any bribe, rebate, payoff, influence payment, kickback or
other unlawful payment to any foreign or domestic government official or
employee.

          5.17 Key Employees. Each "Key Employee" (as defined in Exhibit N) is
currently serving the Company in the capacity disclosed in Exhibit N. No Key
Employee, to the best knowledge of the Company and its subsidiaries, is, or is

                                       30

<PAGE>

now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement,
non-competition agreement, or any other contract or agreement or any restrictive
covenant, and the continued employment of each Key Employee does not subject the
Company or any of its subsidiaries to any liability with respect to any of the
foregoing matters. No Key Employee has, to the best knowledge of the Company and
its subsidiaries, any intention to terminate his employment with, or services
to, the Company or any of its subsidiaries.

          5.18 Representations Correct. The foregoing representations,
warranties and agreements are true, correct and complete in all material
respects, and shall survive any Put Closing and the issuance of the shares of
Common Stock thereby.

          5.19 Tax Status. The Company has made or filed all federal and state
income and all other tax returns, reports and declarations required by any
jurisdiction to which it is subject (unless and only to the extent that the
Company has set aside on its books provisions reasonably adequate for the
payment of all unpaid and unreported taxes) and has paid all taxes and other
governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith and as set aside on its books provision reasonably
adequate for the payment of all taxes for periods subsequent to the periods to
which such returns, reports or declarations apply. There are no unpaid taxes in
any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Company know of no basis for any such
claim.

          5.20 Transactions With Affiliates. Except as set forth in the
Disclosure Documents, none of the officers, directors, or employees of the
Company is presently a party to any transaction with the Company (other than for
services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
knowledge of the Company, any corporation, partnership, trust or other entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.

          5.21 Application of Takeover Protections. The Company and its board of
directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination or other
similar anti-takeover provision under Nevada law which is or could become
applicable to the Investor as a result of the transactions contemplated by this
Agreement, including, without limitation, the issuance of the Common Stock, any
exercise of the Warrants and ownership of the Common Shares and Warrant Shares.
The Company has not adopted and will not adopt any "poison pill" provision that
will be applicable to Investor as a result of transactions contemplated by this
Agreement.

          5.22 Other Agreements. The Company has not, directly or indirectly,
made any agreements with the Investor under a subscription in the form of this
Agreement for the purchase of Common Stock, relating to the terms or conditions
of the transactions contemplated hereby or thereby except as expressly set forth
herein, respectively, or in exhibits hereto or thereto.

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<PAGE>

          5.23 Major Transactions. There are no other Major Transactions
currently pending or contemplated by the Company.

          5.24 Financings. There are no other financings currently pending or
contemplated by the Company.

          5.25 Shareholder Authorization. The Company shall, at its next annual
shareholder meeting following its listing on either the Nasdaq Small Cap Market
or the Nasdaq National Market, or at a special meeting to be held as soon as
practicable thereafter, use its best efforts to obtain approval of its
shareholders to (i) authorize the issuance of the full number of shares of
Common Stock which would be issuable under this Agreement and eliminate any
prohibitions under applicable law or the rules or regulations of any stock
exchange, interdealer quotation system or other self-regulatory organization
with jurisdiction over the Company or any of its securities with respect to the
Company's ability to issue shares of Common Stock in excess of the Cap Amount
(such approvals being the "20% Approval") and (ii) the increase in the number of
authorized shares of Common Stock of the Company (the "Share Authorization
Increase Approval") such that at least 100,000,000 shares can be reserved for
this Offering. In connection with such shareholder vote, the Company shall use
its best efforts to cause all officers and directors of the Company to promptly
enter into irrevocable agreements to vote all of their shares in favor of
eliminating such prohibitions. As soon as practicable after the 20% Approval and
the Share Authorization Increase Approval, the Company agrees to use its best
efforts to reserve 100,000,000 shares of Common Stock for issuance under this
Agreement.

          5.26 Acknowledgment of Limitations on Put Amounts. The Company
understands and acknowledges that the amounts available under this Investment
Agreement are limited, among other things, based upon the liquidity of the
Company's Common Stock traded on its Principal Market.

     6.   Covenants of the Company

          6.1 Independent Auditors. The Company shall use reasonable commercial
efforts to retain as its independent auditors an accounting firm authorized to
practice before the SEC, prior to May 31, 2001 and thereafter to maintain as its
independent auditors an accounting firm authorized to practice before the SEC
until at least the Termination Date, provided that the Company shall not Put to
the Investor and the Investor shall not be required to acquire and purchase from
the Company any Put Shares in excess of $2 million in aggregate Put Dollar
Amount until the Company has retained as its independent auditors an accounting
firm authorized to practice before the SEC.

          6.2 Corporate Existence and Taxes. The Company shall, until at least
the Termination Date, maintain its corporate existence in good standing and,
once it becomes a "Reporting Issuer" (defined as a Company which files periodic
reports under the Exchange Act), remain a Reporting Issuer (provided, however,
that the foregoing covenant shall not prevent the Company from entering into any
merger or corporate reorganization as long as the surviving entity in such
transaction, if not the Company, assumes the Company's obligations with respect
to the Common Stock and has Common Stock listed for trading on a stock exchange

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<PAGE>

or on Nasdaq and is a Reporting Issuer) and shall pay all its taxes when due
except for taxes which the Company disputes.

          6.3 Registration Rights. The Company will enter into a registration
rights agreement covering the resale of the Common Shares and the Warrant Shares
substantially in the form of the Registration Rights Agreement attached as
Exhibit A.

          6.4 Asset Transfers. The Company shall not (i) transfer, sell, convey
or otherwise dispose of any of its material assets to any subsidiary except for
a cash or cash equivalent consideration and for a proper business purpose or
(ii) transfer, sell, convey or otherwise dispose of any of its material assets
to any Affiliate, as defined below, during the Term of this Agreement. For
purposes hereof, "Affiliate" shall mean any officer of the Company, director of
the Company or owner of twenty percent (20%) or more of the Common Stock or
other securities of the Company.

          6.5 Rights of First Refusal.

                6.5.1 Capital Raising Limitations. During the period from the
date of this Agreement until the date that is one year after the Termination
Date, the Company shall not issue or sell, or agree to issue or sell Equity
Securities (as defined below), for cash in private capital raising transactions
without obtaining the prior written approval of the Investor of the Offering
(the limitations referred to in this subsection 6.5.1 are collectively referred
to as the "Capital Raising Limitations"). For purposes hereof, the following
shall be collectively referred to herein as, the "Equity Securities": (i) Common
Stock or any other equity securities, (ii) any debt or equity securities which
are convertible into, exercisable or exchangeable for, or carry the right to
receive additional shares of Common Stock or other equity securities, or (iii)
any securities of the Company pursuant to an equity line structure or format
similar in nature to this Offering.

                6.5.2 Investor's Right of First Refusal. For any private capital
raising transactions of Equity Securities which close after the date hereof and
on or prior to the date that is one (1) year after the Termination Date of this
Agreement, not including any warrants issued in conjunction with this Investment
Agreement, the Company agrees to deliver to Investor, at least ten (10) days
prior to the closing of such transaction, written notice describing the proposed
transaction, including the terms and conditions thereof, and providing the
Investor and its affiliates an option (the "Right of First Refusal") during the
ten (10) day period following delivery of such notice to purchase the securities
being offered in such transaction on the same terms as contemplated by such
transaction.

                6.5.3 Exceptions to Capital Raising Limitations and Rights of
First Refusal. Notwithstanding the above, neither the Capital Raising
Limitations nor the Rights of First Refusal shall apply to any transaction
involving issuances of securities in connection with a merger, consolidation,
acquisition or sale of assets, or in connection with any strategic partnership
or joint venture (the primary purpose of which is not to raise equity capital),
or in connection with the disposition or acquisition of a business, product or
license by the Company or exercise of options by employees, consultants or
directors, or a primary underwritten offering of the Company's Common Stock, or
the transactions set forth on Schedule 6.5.1. The Capital Raising Limitations
and Rights of First Refusal also shall not apply to (a) the issuance of

                                       33

<PAGE>

securities upon exercise or conversion of the Company's options, warrants or
other convertible securities outstanding as of the date hereof, (b) the grant of
additional options or warrants, or the issuance of additional securities, under
any Company stock option or restricted stock plan for the benefit of the
Company's employees, directors or consultants, or (c) the issuance of debt
securities, with no equity feature, incurred solely for working capital
purposes. If the Investor, at any time, is more than five (5) business days late
in paying any Put Dollar Amounts that are then due, the Investor shall not be
entitled to the benefits of Sections 6.5.1 and 6.5.2 above until the date that
the Investor has paid all Put Dollar Amounts that are then due.

          6.6 Financial 10-KSB Statements, Etc. and Current Reports on Form 8-K.
The Company shall deliver to the Investor copies of its annual reports on Form
10-KSB, and quarterly reports on Form 10-QSB and shall deliver to the Investor
current reports on Form 8-K within two (2) days of filing for the Term of this
Agreement.

          6.7 Opinion of Counsel. Investor shall, concurrent with the Investment
Commitment Closing, receive an opinion letter from the Company's legal counsel,
in the form attached as Exhibit B, or in such form as agreed upon by the
parties, and shall, concurrent with each Put Date, receive an opinion letter
from the Company's legal counsel, in the form attached as Exhibit I or in such
form as agreed upon by the parties.

          6.8 Removal of Legend. If the certificates representing any Securities
are issued with a restrictive Legend in accordance with the terms of this
Agreement, the Legend shall be removed and the Company shall issue a certificate
without such Legend to the holder of any Security upon which it is stamped, and
a certificate for a security shall be originally issued without the Legend, if
(a) the sale of such Security is registered under the Act, or (b) such holder
provides the Company with an opinion of counsel, in form, substance and scope
customary for opinions of counsel in comparable transactions (the reasonable
cost of which shall be borne by the Investor), to the effect that a public sale
or transfer of such Security may be made without registration under the Act, or
(c) such holder provides the Company with reasonable assurances that such
Security can be sold pursuant to Rule 144. Each Investor agrees to sell all
Securities, including those represented by a certificate(s) from which the
Legend has been removed, or which were originally issued without the Legend,
pursuant to an effective registration statement and to deliver a prospectus in
connection with such sale or in compliance with an exemption from the
registration requirements of the Act.

          6.9 Listing. Subject to the remainder of this Section 6.9, the Company
shall ensure that its shares of Common Stock (including all Warrant Shares and
Put Shares) are listed and available for trading on the O.T.C. Bulletin Board.
Thereafter, the Company shall (i) use its best efforts to continue the listing
and trading of its Common Stock on the O.T.C. Bulletin Board or to become
eligible for and listed and available for trading on the Nasdaq Small Cap
Market, the NMS, or the New York Stock Exchange ("NYSE"); and (ii) comply in all
material respects with the Company's reporting, filing and other obligations
under the By-Laws or rules of the National Association of Securities Dealers
("NASD") and such exchanges, as applicable.

          6.10 The Company's Instructions to Transfer Agent. The Company will
instruct the Transfer Agent of the Common Stock (the "Transfer Agent"), by
delivering instructions in the form of Exhibit T hereto, to issue certificates,
registered in the name of each Investor or its nominee, for the Put Shares and

                                       34

<PAGE>

Warrant Shares in such amounts as specified from time to time by the Company
upon any exercise by the Company of a Put and/or exercise of the Warrants by the
holder thereof. Such certificates shall not bear a Legend unless issuance with a
Legend is permitted by the terms of this Agreement and Legend removal is not
permitted by Section 6.8 hereof and the Company shall cause the Transfer Agent
to issue such certificates without a Legend. Nothing in this Section shall
affect in any way Investor's obligations and agreement set forth in Sections
3.3.2 or 3.3.3 hereof to resell the Securities pursuant to an effective
registration statement and to deliver a prospectus in connection with such sale
or in compliance with an exemption from the registration requirements of
applicable securities laws. If (a) an Investor provides the Company with an
opinion of counsel, which opinion of counsel shall be in form, substance and
scope customary for opinions of counsel in comparable transactions, to the
effect that the Securities to be sold or transferred may be sold or transferred
pursuant to an exemption from registration or (b) an Investor transfers
Securities, pursuant to Rule 144, to a transferee which is an accredited
investor, the Company shall permit the transfer, and, in the case of Put Shares
and Warrant Shares, promptly instruct its transfer agent to issue one or more
certificates in such name and in such denomination as specified by such
Investor. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to an Investor by vitiating the intent and
purpose of the transaction contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for a breach of its obligations under this
Section 6.10 will be inadequate and agrees, in the event of a breach or
threatened breach by the Company of the provisions of this Section 6.10, that an
Investor shall be entitled, in addition to all other available remedies, to an
injunction restraining any breach and requiring immediate issuance and transfer,
without the necessity of showing economic loss and without any bond or other
security being required.

          6.11 Stockholder 20% Approval. Prior to the closing of any Put that
would cause the Aggregate Issued Shares to exceed the Cap Amount, if required by
the rules of NASDAQ because the Company's Common Stock is listed on NASDAQ, the
Company shall obtain approval of its stockholders to authorize (i) the issuance
of the full number of shares of Common Stock which would be issuable pursuant to
this Agreement but for the Cap Amount and eliminate any prohibitions under
applicable law or the rules or regulations of any stock exchange, interdealer
quotation system or other self-regulatory organization with jurisdiction over
the Company or any of its securities with respect to the Company's ability to
issue shares of Common Stock in excess of the Cap Amount (such approvals being
the "Stockholder 20% Approval").

          6.12 Press Release. The Company agrees that the Investor shall have
the right to review and comment upon any press release issued by the Company in
connection with the Offering which approval shall not be unreasonably withheld
by Investor.

          6.13 Change in Law or Policy. In the event of a change in law, or
policy of the SEC, as evidenced by a No-Action letter or other written
statements of the SEC or the NASD which causes the Investor to be unable to
perform its obligations hereunder, this Agreement shall be automatically
terminated and no Termination Fee shall be due, provided that notwithstanding
any termination under this section 6.13, the Investor shall retain full
ownership of the Commitment Warrant as partial consideration for its commitment
hereunder.

                                       35

<PAGE>

     7.   Investor Covenant/Miscellaneous.

          7.1 Representations and Warranties Survive the Closing; Severability.
Investor's and the Company's representations and warranties shall survive the
Investment Date and any Put Closing contemplated by this Agreement
notwithstanding any due diligence investigation made by or on behalf of the
party seeking to rely thereon. In the event that any provision of this Agreement
becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, or is altered by a term required by the Securities
Exchange Commission to be included in the Registration Statement, this Agreement
shall continue in full force and effect without said provision; provided that if
the removal of such provision materially changes the economic benefit of this
Agreement to the Investor, this Agreement shall terminate.

          7.2 Successors and Assigns. This Agreement shall not be assignable
without the Company's written consent. If assigned, the terms and conditions of
this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement. Investor may assign Investor's rights hereunder, in
connection with any private sale of the Common Stock of such Investor, so long
as, as a condition precedent to such transfer, the transferee executes an
acknowledgment agreeing to be bound by the applicable provisions of this
Agreement in a form acceptable to the Company and provides an original copy of
such acknowledgment to the Company.

          7.3 Execution in Counterparts Permitted. This Agreement may be
executed in any number of counterparts, each of which shall be enforceable
against the parties actually executing such counterparts, and all of which
together shall constitute one (1) instrument.

          7.4 Titles and Subtitles; Gender. The titles and subtitles used in
this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement. The use in this Agreement of a
masculine, feminine or neither pronoun shall be deemed to include a reference to
the others.

          7.5 Written Notices, Etc. Any notice, demand or request required or
permitted to be given by the Company or Investor pursuant to the terms of this
Agreement shall be in writing and shall be deemed given when delivered
personally, or by facsimile or upon receipt if by overnight or two (2) day
courier, addressed to the parties at the addresses and/or facsimile telephone
number of the parties set forth at the end of this Agreement or such other
address as a party may request by notifying the other in writing; provided,
however, that in order for any notice to be effective as to the Investor such
notice shall be delivered and sent, as specified herein, to all the addresses
and facsimile telephone numbers of the Investor set forth at the end of this
Agreement or such other address and/or facsimile telephone number as Investor
may request in writing.

                                       36

<PAGE>

          7.6 Expenses. Except as set forth in the Registration Rights
Agreement, each of the Company and Investor shall pay all costs and expenses
that it respectively incurs, with respect to the negotiation, execution,
delivery and performance of this Agreement.

          7.7 Entire Agreement; Written Amendments Required. This Agreement,
including the Exhibits attached hereto, the Common Stock certificates, the
Warrants, the Registration Rights Agreement, and the other documents delivered
pursuant hereto constitute the full and entire understanding and agreement
between the parties with regard to the subjects hereof and thereof, and no party
shall be liable or bound to any other party in any manner by any warranties,
representations or covenants, whether oral, written, or otherwise except as
specifically set forth herein or therein. Except as expressly provided herein,
neither this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought.

          7.8 Actions at Law or Equity; Jurisdiction and Venue. The parties
acknowledge that any and all actions, whether at law or at equity, and whether
or not said actions are based upon this Agreement between the parties hereto,
shall be filed in any state or federal court sitting in Atlanta, Georgia.
Georgia law shall govern both the proceeding as well as the interpretation and
construction of the Transaction Documents and the transaction as a whole. In any
litigation between the parties hereto, the prevailing party, as found by the
court, shall be entitled to an award of all attorney's fees and costs of court.
Should the court refuse to find a prevailing party, each party shall bear its
own legal fees and costs.

     8.   Subscription and Wiring Instructions; Irrevocability.

          (a)       Wire transfer of Subscription Funds. Investor shall deliver
                    Put Dollar Amounts (as payment towards any Put Share Price)
                    by wire transfer, to the Company pursuant to a wire
                    instruction letter to be provided by the Company, and signed
                    by the Company.

          (b)       Irrevocable Subscription. Investor hereby acknowledges and
                    agrees, subject to the provisions of any applicable laws
                    providing for the refund of subscription amounts submitted
                    by Investor, that this Agreement is irrevocable and that
                    Investor is not entitled to cancel, terminate or revoke this
                    Agreement or any other agreements executed by such Investor
                    and delivered pursuant hereto, and that this Agreement and
                    such other agreements shall survive the death or disability
                    of such Investor and shall be binding upon and inure to the
                    benefit of the parties and their heirs, executors,
                    administrators, successors, legal representatives and
                    assigns. If the Securities subscribed for are to be owned by
                    more than one person, the obligations of all such owners
                    under this Agreement shall be joint and several, and the
                    agreements, representations, warranties and acknowledgments
                    herein contained shall be deemed to be made by and be
                    binding upon each such person and his heirs, executors,
                    administrators, successors, legal representatives and
                    assigns.

                                       37

<PAGE>

     9.   Indemnification.

     In consideration of the Investor's execution and delivery of the Investment
Agreement, the Registration Rights Agreement and the Warrants (the "Transaction
Documents") and acquiring the Securities thereunder and in addition to all of
the Company's other obligations under the Transaction Documents, the Company
shall defend, protect, indemnify and hold harmless Investor and all of its
stockholders, officers, directors, employees and direct or indirect investors
and any of the foregoing person's agents, members, partners or other
representatives (including, without limitation, those retained in connection
with the transactions contemplated by this Agreement) (collectively, the
"Indemnitees") from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Indemnitee is a party to
the action for which indemnification hereunder is sought), and including
reasonable attorne s fees and disbursements (the "Indemnified Liabilities"),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a)
any misrepresentation or breach of any representation or warranty made by the
Company in the Transaction Documents or any other certificate, instrument or
documents contemplated hereby or thereby, (b) any breach of any covenant,
agreement or obligation of the Company contained in the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby,
(c) any cause of action, suit or claim, derivative or otherwise, by any
stockholder of the Company based on a breach or alleged breach by the Company or
any of its officers or directors of their fiduciary or other obligations to the
stockholders of the Company, or (d) claims made by third parties against any of
the Indemnitees based on a violation of Section 5 of the Securities Act caused
by the integration of the private sale of common stock to the Investor and the
public offering pursuant to the Registration Statement.

     To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which it
would be required to make if such foregoing undertaking was enforceable which is
permissible under applicable law.

     Promptly after receipt by an Indemnified Party of notice of the
commencement of any action pursuant to which indemnification may be sought, such
Indemnified Party will, if a claim in respect thereof is to be made against the
other party (hereinafter "Indemnitor") under this Section 9, deliver to the
Indemnitor a written notice of the commencement thereof and the Indemnitor shall
have the right to participate in and to assume the defense thereof with counsel
reasonably selected by the Indemnitor, provided, however, that an Indemnified
Party shall have the right to retain its own counsel, with the reasonably
incurred fees and expenses of such counsel to be paid by the Indemnitor, if
representation of such Indemnified Party by the counsel retained by the
Indemnitor would be inappropriate due to actual or potential conflicts of
interest between such Indemnified Party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
Indemnitor within a reasonable time of the commencement of any such action, if
prejudicial to the Indemnitor's ability to defend such action, shall relieve the
Indemnitor of any liability to the Indemnified Party under this Section 9, but

                                       38

<PAGE>

the omission to so deliver written notice to the Indemnitor will not relieve it
of any liability that it may have to any Indemnified Party other than under this
Section 9 to the extent it is prejudicial.

                           [INTENTIONALLY LEFT BLANK]

                                        39

<PAGE>

          10.  Accredited Investor. Investor is an "accredited investor" because
               (check all applicable boxes):

          (a)  [ ]  it is an organization described in Section 501(c)(3) of the
                    Internal Revenue Code, or a corporation, limited duration
                    company, limited liability company, business trust, or
                    partnership not formed for the specific purpose of acquiring
                    the securities offered, with total assets in excess of
                    $5,000,000.

          (b)  [ ]  any trust, with total assets in excess of $5,000,000, not
                    formed for the specific purpose of acquiring the securities
                    offered, whose purchase is directed by a sophisticated
                    person who has such knowledge and experience in financial
                    and business matters that he is capable of evaluating the
                    merits and risks of the prospective investment.

         (c)   [ ]  a natural person, who

               [ ]  is a director, executive officer or general partner of the
                    issuer of the securities being offered or sold or a
                    director, executive officer or general partner of a general
                    partner of that issuer.

               [ ]  has an individual net worth, or joint net worth with that
                    person's spouse, at the time of his purchase exceeding
                    $1,000,000.

               [ ]  had an individual income in excess of $200,000 in each of
                    the two most recent years or joint income with that person's
                    spouse in excess of $300,000 in each of those years and has
                    a reasonable expectation of reaching the same income level
                    in the current year.

         (d)   [ ]  an entity each equity owner of which is an entity described
                    in a - b above or is an individual who could check one (1)
                    of the last three (3) boxes under subparagraph (c) above.

         (e)   [ ]  other [specify] ________________________________________.

                                       40

<PAGE>

     The undersigned hereby subscribes the Maximum Offering Amount and
acknowledges that this Agreement and the subscription represented hereby shall
not be effective unless accepted by the Company as indicated below.

     IN WITNESS WHEREOF, the undersigned Investor does represent and certify
under penalty of perjury that the foregoing statements are true and correct and
that Investor by the following signature(s) executed this Agreement.

Dated this 30th day of June, 2000.

SWARTZ PRIVATE EQUITY, LLC

By:  /s/  Eric S. Swartz
   ----------------------------------
          Eric S. Swartz, Manager

SECURITY DELIVERY INSTRUCTIONS:
Swartz Private Equity, LLC
C/o Eric S. Swartz
200 Roswell Summit, Suite 285
1080 Holcomb Bridge Road
Roswell, GA 30076
Telephone: (770) 640-8130

THIS AGREEMENT IS ACCEPTED BY THE COMPANY IN THE AMOUNT OF THE MAXIMUM  OFFERING
AMOUNT ON THE 30th DAY OF JUNE, 2000.

                                            MEDITECH PHARMACEUTICALS, INC.

                                            By:  /s/  Gerald N. Kern
                                               -------------------------------
                                                      Gerald N. Kern, Chairman,
                                                      CEO

                                  Address:
                                           Attn: Gerald N. Kern, Chairman - CEO
                                           10474 North 97th Street
                                           Scottsdale, AZ  85258
                                           Telephone (480) 614-5324
                                           Facsimile  (480)  614-0560

                                       41

<PAGE>

                               ADVANCE PUT NOTICE

Meditech Pharmaceuticals, Inc. (the "Company") hereby intends, subject to the
Individual Put Limit (as defined in the Investment Agreement), to elect to
exercise a Put to sell the number of shares of Common Stock of the Company
specified below, to _____________________________, the Investor, as of the
Intended Put Date written below, all pursuant to that certain Investment
Agreement (the "Investment Agreement") by and between the Company and Swartz
Private Equity, LLC dated on or about June 30, 2000.

                      Date of Advance Put Notice:
                                                 ---------------------------

                      Intended Put Date :
                                         -----------------------------------

                      Intended Put Share Amount:
                                                ----------------------------

                      Company Designation Maximum Put Dollar Amount (Optional):

                      ------------------------------------------------------.

                      Company Designation Minimum Put Share Price (Optional):

                      ------------------------------------------------------.

                                     MEDITECH PHARMACEUTICALS, INC.

                                     By:  /s/  Gerald N. Kern
                                        ------------------------------------
                                               Gerald N. Kern, Chairman - CEO

                                Address:
                                         Attn: Gerald N. Kern, Chairman - CEO
                                         10474 North 97th Street
                                         Scottsdale, AZ  85258
                                         Telephone (480) 614-5324
                                         Facsimile  (480)  614-0560

                                    EXHIBIT E

                                       42

<PAGE>

                       CONFIRMATION of ADVANCE PUT NOTICE

_________________________________, the Investor, hereby confirms receipt
Meditech Pharmaceuticals Inc.'s(the "Company") Advance Put Notice on the Advance
Put Date written below, and its intention to elect to exercise a Put to sell
shares of common stock ("Intended Put Share Amount") of the Company to the
Investor, as of the intended Put Date written below, all pursuant to that
certain Investment Agreement (the "Investment Agreement") by and between the
Company and Swartz Private Equity, LLC dated on or about June 30, 2000.

                     Date of Confirmation:
                                          ----------------------------------

                     Date of Advance Put Notice:
                                                ----------------------------

                     Intended Put Date:
                                       -------------------------------------

                     Intended Put Share Amount: _

                     Company Designation Maximum Put Dollar Amount (Optional):

                    --------------------------------------------------------.

                     Company Designation Minimum Put Share Price (Optional):

                     -------------------------------------------------------.

                                         INVESTOR(S)

                                         -----------------------------------
                                         Investor's Name

                                         By:
                                            --------------------------------
                                                  (Signature)
                        Address:         -----------------------------------

                                         -----------------------------------

                                         -----------------------------------

                        Telephone No.:
                                         -----------------------------------

                        Facsimile No.:
                                         -----------------------------------

                                    EXHIBIT F

                                       43

<PAGE>

                                   PUT NOTICE

Meditech Pharmaceuticals, Inc. (the "Company") hereby elects to exercise a Put
to sell shares of common stock ("Common Stock") of the Company to
_____________________________, the Investor, as of the Put Date, at the Put
Share Price and for the number of Put Shares written below, all pursuant to that
certain Investment Agreement (the "Investment Agreement") by and between the
Company and Swartz Private Equity, LLC dated on or about June 30, 2000.

                       Put Date :
                                 ---------------------

                       Intended Put Share Amount (from Advance Put
                       Notice):_________________ Common Shares

                       Company Designation Maximum Put Dollar Amount (Optional):

                       ----------------------------------------.

                       Company Designation Minimum Put Share Price (Optional):

                       ----------------------------------------.

Note: Capitalized terms shall have the meanings ascribed to them in this
Investment Agreement.

                                       MEDITECH PHARMACEUTICALS, INC.

                                       By:  /s/  Gerald N. Kern
                                          ----------------------------------
                                                 Gerald N. Kern, Chairman - CEO

                                  Address:
                                           Attn: Gerald N. Kern, Chairman - CEO
                                            10474 North 97th Street
                                           Scottsdale, AZ  85258
                                           Telephone (480) 614-5324
                                           Facsimile  (480) 614-0560

                                    EXHIBIT G

                                       44

<PAGE>

                           CONFIRMATION of PUT NOTICE

_________________________________, the Investor, hereby confirms receipt of
Meditech Pharmaceuticals, Inc. (the "Company") Put Notice and election to
exercise a Put to sell ___________________________ shares of common stock
("Common Stock") of the Company to Investor, as of the Put Date, all pursuant to
that certain Investment Agreement (the "Investment Agreement") by and between
the Company and Swartz Private Equity, LLC dated on or about June 30, 2000.

                                   Date of this Confirmation: _____________

                                   Put Date :_________________

                                   Number of Put Shares of
                                   Common Stock to be Issued: _____________

                                   Volume Evaluation Period: _____ Business Days

                                   Pricing Period: _____ Business Days

                                   INVESTOR(S)

                                   -----------------------------------
                                   Investor's Name

                                   By: _________________________________
                                              (Signature)

                      Address:         _________________________________

                                       ---------------------------------

                                       ---------------------------------

                     Telephone No.:    _________________________________

                     Facsimile No.:    _________________________________

                                    EXHIBIT H

                                       45

<PAGE>

                             PUT CANCELLATION NOTICE

Meditech Pharmaceuticals, Inc. (the "Company") hereby cancels the Put specified
below, pursuant to that certain Investment Agreement (the "Investment
Agreement") by and between the Company and Swartz Private Equity, LLC dated on
or about June 30, 2000, as of the close of trading on the date specified below
(the "Cancellation Date," which date must be on or after the date that this
notice is delivered to the Investor), provided that such cancellation shall not
apply to the number of shares of Common Stock equal to the Truncated Put Share
Amount (as defined in the Investment Agreement).

                  Cancellation Date: ________________________

                  Put Date of Put Being Canceled: ___________

                  Number of Shares Put on Put Date: _________

                  Reason   for   Cancellation
(check one):

                          [   ] Material Facts, Ineffective Registration Period.

                          [   ] Delisting Event

The Company understands that, by canceling this Put, it must give twenty (20)
Business Days advance written notice to the Investor before effecting the next
Put.

                                        MEDITECH PHARMACEUTICALS, INC

                                        By:  /s/  Gerald N. Kern
                                           ------------------------------------
                                                  Gerald N. Kern, Chairman - CEO

                                  Address:
                                            Attn: Gerald N. Kern, Chairman - CEO
                                            10474 North 97th Street
                                            Scottsdale, AZ  85258
                                            Telephone (480) 614-5324
                                            Facsimile  (480)  614-0560

                                    EXHIBIT Q

                                       46

<PAGE>

                      PUT CANCELLATION NOTICE CONFIRMATION

The undersigned Investor to that certain Investment Agreement (the "Investment
Agreement") by and between the Meditech Pharmaceuticals, Inc.'s, and Swartz
Private Equity, LLC dated on or about June 30, 2000, hereby confirms receipt of
Meditech Pharmaceuticals, Inc.'s (the "Company") Put Cancellation Notice, and
confirms the following:

                                          Date of this Confirmation: ________

                                          Put Cancellation Date : ___________

                                          INVESTOR(S)

                                          -----------------------------------
                                          Investor's Name

                                          By: _______________________________
                                                       (Signature)

                           Address        ___________________________________

                                          -----------------------------------

                                          -----------------------------------

                           Telephone No.: ___________________________________

                           Facsimile No.: ___________________________________

                                   EXHIBIT S

                                       47Exhibit 4.1

                                    INDENTURE

                                     between

                      FORD CREDIT AUTO OWNER TRUST 2000-G,

                                    as Issuer

                                       and

                            THE CHASE MANHATTAN BANK,

                              as Indenture Trustee

                          Dated as of November 1, 2000

<PAGE>

<TABLE>
<CAPTION>

                                       CROSS REFERENCE TABLE 1

<S>                                                                                             <C>
  TIA                                                                                       Indenture
Section                                                                                      Section

310 (a)(1)....................................................................................   6.11
    (a)(2)....................................................................................   6.11
    (a)(3)....................................................................................   6.10
    (a)(4)..................................................................................    N.A.2
    (a)(5)....................................................................................   6.11
    (b)  ..................................................................................  6.8;6.11
    (c)  .....................................................................................   N.A.
311 (a)  .....................................................................................   6.12
    (b)  .....................................................................................   6.12
    (c)  .....................................................................................   N.A.
312 (a)  .....................................................................................   7.1
    (b)  .....................................................................................   7.2
    (c)  .....................................................................................   7.2
313 (a)  .....................................................................................   7.4
    (b)(1)....................................................................................   7.4
    (b)(2)....................................................................................  11.5
    (c)  .....................................................................................   7.4
    (d)  .....................................................................................   7.3
314 (a)  .....................................................................................  11.15
    (b)  .....................................................................................  11.1
    (c)(1)....................................................................................  11.1
    (c)(2)....................................................................................  11.1
    (c)(3)....................................................................................  11.1
    (d)  .....................................................................................  11.1
    (e)  .....................................................................................  11.1
    (f)  .....................................................................................  11.1
315 (a)  .....................................................................................   6.1
    (b)  ...................................................................................6.5;11.5
    (c)  .....................................................................................   6.1
    (d)  .....................................................................................   6.1
    (e)  .....................................................................................   5.13
316 (a) (last sentence).......................................................................   2.8
    (a)(1)(A).................................................................................   5.11
    (a)(1)(B).................................................................................   5.12
    (a)(2)....................................................................................   N.A.
    (b)  .....................................................................................   5.7
    (c)  .....................................................................................   N.A
317 (a)(1)....................................................................................   5.3
    (a)(2)....................................................................................   5.3
    (b)  .....................................................................................   3.3
318 (a)  .....................................................................................  11.7

-----------------------

1        Note:  This Cross Reference Table shall not, for any purpose, be deemed to be part of this
         Indenture.

2        N.A. means Not Applicable.

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

<S>                                                                                               <C>

                                    ARTICLE I

DEFINITIONS, USAGE AND INCORPORATION BY REFERENCE...................................................3
SECTION 1.1  Definitions and Usage..................................................................3
SECTION 1.2  Incorporation by Reference of Trust Indenture Act......................................3

                                   ARTICLE II

THE NOTES...........................................................................................4
SECTION 2.1  Form...................................................................................4
SECTION 2.2  Execution, Authentication and Delivery.................................................4
SECTION 2.3  Temporary Notes........................................................................5
SECTION 2.4  Tax Treatment..........................................................................6
SECTION 2.5  Registration; Registration of Transfer and Exchange....................................6
SECTION 2.6  Mutilated, Destroyed, Lost or Stolen Notes.............................................8
SECTION 2.7  Persons Deemed Owners..................................................................9
SECTION 2.8  Payment of Principal and Interest; Defaulted Interest..................................9
SECTION 2.9  Cancellation..........................................................................10
SECTION 2.10  Release of Collateral................................................................11
SECTION 2.11  Book-Entry Notes.....................................................................11
SECTION 2.12  Notices to Clearing Agency...........................................................12
SECTION 2.13  Definitive Notes.....................................................................12
SECTION 2.14  Authenticating Agents................................................................13

                                   ARTICLE III

COVENANTS..........................................................................................15
SECTION 3.1  Payment of Principal and Interest.....................................................15
SECTION 3.2  Maintenance of Office or Agency.......................................................15
SECTION 3.3  Money for Payments To Be Held in Trust................................................15
SECTION 3.4  Existence.............................................................................17
SECTION 3.5  Protection of Indenture Trust Estate..................................................18
SECTION 3.6  Opinions as to Indenture Trust Estate.................................................18
SECTION 3.7  Performance of Obligations; Servicing of Receivables..................................19
SECTION 3.8  Negative Covenants....................................................................21
SECTION 3.9  Annual Statement as to Compliance.....................................................22
SECTION 3.10  Issuer May Consolidate, etc., Only on Certain Terms..................................23
SECTION 3.11  Successor or Transferee..............................................................25
SECTION 3.12  No Other Business....................................................................25
SECTION 3.13  No Borrowing.........................................................................25
SECTION 3.14  Servicer's Obligations...............................................................25
SECTION 3.15  Guarantees, Loans, Advances and Other Liabilities....................................25
SECTION 3.16  Capital Expenditures.................................................................26
SECTION 3.17  Further Instruments and Acts.........................................................26
SECTION 3.18  Restricted Payments..................................................................26
SECTION 3.19  Notice of Events of Default..........................................................26
SECTION 3.20  Removal of Administrator.............................................................26

                                   ARTICLE IV

SATISFACTION AND DISCHARGE.........................................................................27
SECTION 4.1  Satisfaction and Discharge of  Indenture..............................................27
SECTION 4.2  Satisfaction, Discharge and Defeasance of Notes.......................................28
SECTION 4.3  Application of Trust Money............................................................30
SECTION 4.4  Repayment of Monies Held by Note Paying Agent.........................................30

                                    ARTICLE V

REMEDIES...........................................................................................31
SECTION 5.1  Events of Default.....................................................................31
SECTION 5.2  Acceleration of Maturity; Rescission and Annulment....................................32
SECTION 5.3  Collection of Indebtedness and Suits for Enforcement by Indenture
             Trustee...............................................................................33
SECTION 5.4  Remedies; Priorities..................................................................36
SECTION 5.5  Optional Preservation of the Receivables..............................................40
SECTION 5.6  Limitation of Suits...................................................................40
SECTION 5.7  Unconditional Rights of Noteholders To Receive Principal and Interest.................41
SECTION 5.8  Restoration of Rights and Remedies....................................................41
SECTION 5.9  Rights and Remedies Cumulative........................................................42
SECTION 5.10  Delay or Omission Not a Waiver.......................................................42
SECTION 5.11  Control by Controlling Note Class of Noteholders.....................................42
SECTION 5.12  Waiver of Past Defaults..............................................................43
SECTION 5.13  Undertaking for Costs................................................................43
SECTION 5.14  Waiver of Stay or Extension Laws.....................................................44
SECTION 5.15  Action on Notes......................................................................44
SECTION 5.16  Performance and Enforcement of Certain Obligations...................................44

                                   ARTICLE VI

THE INDENTURE TRUSTEE..............................................................................46
SECTION 6.1  Duties of Indenture Trustee...........................................................46
SECTION 6.2  Rights of Indenture Trustee...........................................................47
SECTION 6.3  Individual Rights of Indenture Trustee................................................48
SECTION 6.4  Indenture Trustee's Disclaimer........................................................48
SECTION 6.5  Notice of Defaults. ..................................................................49
SECTION 6.6  Reports by Indenture Trustee to Noteholders...........................................49
SECTION 6.7  Compensation and Indemnity............................................................49
SECTION 6.8  Replacement of Indenture Trustee......................................................50
SECTION 6.9  Successor Indenture Trustee by Merger.................................................51
SECTION 6.10  Appointment of Co-Indenture Trustee or Separate Indenture Trustee....................52
SECTION 6.11  Eligibility; Disqualification........................................................53
SECTION 6.12  Preferential Collection of Claims Against Issuer.....................................54

                                   ARTICLE VII

NOTEHOLDERS' LISTS AND REPORTS.....................................................................55
SECTION 7.1  Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders................55
SECTION 7.2  Preservation of Information; Communications to Noteholders............................55
SECTION 7.3  Reports by Issuer.....................................................................55
SECTION 7.4  Reports by Indenture Trustee..........................................................56

                                  ARTICLE VIII

ACCOUNTS, DISBURSEMENTS AND RELEASES...............................................................57
SECTION 8.1  Collection of Money...................................................................57
SECTION 8.2  Trust Accounts and Payahead Account...................................................57
SECTION 8.3  General Provisions Regarding Accounts.................................................61
SECTION 8.4  Release of Indenture Trust Estate.....................................................62
SECTION 8.5  Opinion of Counsel....................................................................63

                                   ARTICLE IX

SUPPLEMENTAL INDENTURES............................................................................64
SECTION 9.1  Supplemental Indentures Without Consent of Noteholders................................64
SECTION 9.2   Supplemental Indentures with Consent of Noteholders..................................65
SECTION 9.3  Execution of Supplemental Indentures..................................................68
SECTION 9.4  Effect of Supplemental Indenture......................................................68
SECTION 9.5  Conformity with Trust Indenture Act...................................................68
SECTION 9.6  Reference in Notes to Supplemental Indentures.........................................68

                                    ARTICLE X

REDEMPTION OF NOTES................................................................................70
SECTION 10.1  Redemption...........................................................................70
SECTION 10.2  Form of Redemption Notice............................................................70
SECTION 10.3  Notes Payable on Redemption Date.....................................................71

                                   ARTICLE XI

MISCELLANEOUS......................................................................................72
SECTION 11.1  Compliance Certificates and Opinions, etc............................................72
SECTION 11.2  Form of Documents Delivered to Indenture Trustee.....................................74
SECTION 11.3  Acts of Noteholders..................................................................75
SECTION 11.4  Notices, etc., to Indenture Trustee, Issuer and Rating Agencies......................76
SECTION 11.5  Notices to Noteholders; Waiver.......................................................77
SECTION 11.6  Alternate Payment and Notice Provisions..............................................77
SECTION 11.7  Conflict with Trust Indenture Act....................................................78
SECTION 11.8  Effect of Headings and Table of Contents.............................................78
SECTION 11.9  Successors and Assigns...............................................................78
SECTION 11.10  Separability........................................................................78
SECTION 11.11  Benefits of Indenture...............................................................78
SECTION 11.12  Legal Holidays......................................................................78
SECTION 11.13  Governing Law.......................................................................79
SECTION 11.14  Counterparts........................................................................79
SECTION 11.15  Recording of Indenture..............................................................79
SECTION 11.16  Trust Obligation....................................................................79
SECTION 11.17  No Petition.........................................................................79
SECTION 11.18  Inspection..........................................................................80

EXHIBIT A-1
         FORM OF CLASS A-1 NOTE.................................................................A-1-1
EXHIBIT A-2
         FORM OF CLASS A-2 NOTE.................................................................A-2-1
EXHIBIT A-3
         FORM OF CLASS A-3 NOTE.................................................................A-3-1
EXHIBIT A-4
         FORM OF CLASS A-4 NOTE.................................................................A-4-1
EXHIBIT A-5
         FORM OF CLASS A-5 NOTE.................................................................A-5-1
EXHIBIT B
         FORM OF CLASS B NOTE.....................................................................B-1
EXHIBIT C
         FORM OF NOTE DEPOSITORY AGREEMENT........................................................C-1
SCHEDULE A
         Schedule of Receivables.................................................................SA-1
APPENDIX A
         Definitions and Usage...................................................................AA-1

</TABLE>

<PAGE>

                  INDENTURE, dated as of November 1, 2000, (as from time to time
amended,  supplemented or otherwise  modified and in effect,  this  "Indenture")
between  FORD CREDIT AUTO OWNER TRUST  2000-G,  a Delaware  business  trust,  as
Issuer, and THE CHASE MANHATTAN BANK, a New York corporation, as trustee and not
in its individual capacity (in such capacity, the "Indenture Trustee").

                  Each  party  agrees as  follows  for the  benefit of the other
party and for the equal and ratable benefit of the holders of the Issuer's Class
A-1 6.569% Asset  Backed  Notes (the "Class A-1 Notes"),  Class A-2 6.688% Asset
Backed  Notes (the "Class A-2  Notes"),  Class A-3 6.67% Asset Backed Notes (the
"Class A-3 Notes"),  Class A-4 6.62% Asset Backed Notes (the "Class A-4 Notes"),
Class A-5 6.66% Asset Backed Notes (the "Class A-5 Notes" and, together with the
Class A-1  Notes,  the Class  A-2  Notes,  the Class A-3 Notes and the Class A-4
Notes,  the "Class A Notes") and Class B 6.92% Asset  Backed Notes (the "Class B
Notes" and, together with the Class A Notes, the "Notes"):

                                 GRANTING CLAUSE

                  The  Issuer  hereby  Grants to the  Indenture  Trustee  at the
Closing Date, as Indenture  Trustee for the benefit of the  Noteholders,  all of
the Issuer's  right,  title and interest in, to and under,  whether now owned or
existing or hereafter acquired or arising, (a) the Receivables; (b) with respect
to  Actuarial  Receivables,  monies due  thereunder  on or after the Cutoff Date
(including Payaheads) and, with respect to Simple Interest  Receivables,  monies
due or received  thereunder on or after the Cutoff Date  (including in each case
any monies received prior to the Cutoff Date that are due on or after the Cutoff
Date and were not used to reduce the principal  balance of the Receivable);  (c)
the security  interests in the Financed Vehicles granted by Obligors pursuant to
the Receivables  and any other interest of the Issuer in the Financed  Vehicles;
(d) rights to receive  proceeds with respect to the  Receivables  from claims on
any physical damage, credit life, credit disability, or other insurance policies
covering  Financed  Vehicles or Obligors;  (e) Dealer  Recourse;  (f) all of the
rights  to the  Receivable  Files;  (g) the  Trust  Accounts  and  all  amounts,
securities,  investments  and other property  deposited in or credited to any of
the foregoing and all proceeds  thereof;  (h) the Sale and Servicing  Agreement;
(i) all of the rights under the Purchase  Agreement,  including the right of the
Seller to cause Ford  Credit to  repurchase  Receivables  from the  Seller;  (j)
payments and proceeds with respect to the Receivables held by the Servicer;  (k)
all property  (including the right to receive  Liquidation  Proceeds) securing a
Receivable (other than a Receivable  purchased by the Servicer or repurchased by
the  Seller);  (l) rebates of premiums and other  amounts  relating to insurance
policies  and other items  financed  under the  Receivables  in effect as of the
Cutoff Date;  and (m) all present and future claims,  demands,  causes of action
and choses in action in respect of any or all of the  foregoing and all payments
on or under and all proceeds of every kind and nature  whatsoever  in respect of
any or all of the foregoing,  including all proceeds of the conversion  thereof,
voluntary or involuntary, into cash or other liquid property, all cash proceeds,
accounts,  accounts  receivable,  notes,  drafts,  acceptances,  chattel  paper,
checks,  deposit accounts,  insurance proceeds,  condemnation awards,  rights to
payment of any and every kind and other forms of  obligations  and  receivables,
instruments  and other property  which at any time  constitute all or part of or
are  included  in  the  proceeds  of any of  the  foregoing  (collectively,  the
"Collateral").

                  The foregoing  Grant is made in trust to secure the payment of
principal  of and interest  on, and any other  amounts  owing in respect of, the
Notes,  equally and ratably without prejudice,  priority or distinction,  and to
secure compliance with the provisions of this Indenture, all as provided in this
Indenture.

                  The Indenture  Trustee,  as Indenture Trustee on behalf of the
Noteholders, acknowledges such Grant, accepts the trusts under this Indenture in
accordance  with the  provisions  of this  Indenture  and agrees to perform  its
duties required in this Indenture to the best of its ability to the end that the
interests of the Noteholders may be adequately and effectively protected.

<PAGE>

                                    ARTICLE I

               DEFINITIONS, USAGE AND INCORPORATION BY REFERENCE

                  SECTION  1.1  Definitions  and  Usage.   Except  as  otherwise
specified herein or as the context may otherwise require, capitalized terms used
but not otherwise  defined  herein are defined in Appendix A hereto,  which also
contains rules as to usage that shall be applicable herein.

                  SECTION 1.2 Incorporation by Reference of Trust Indenture Act.
Whenever  this  Indenture  refers to a provision  of the TIA,  the  provision is
incorporated  by reference in and made a part of this  Indenture.  The following
TIA terms used in this Indenture have the following meanings:

                  "indenture securities" shall mean the Notes.

                  "indenture security holder" shall mean a Noteholder.

                  "indenture to be qualified" shall mean this Indenture.

                  "indenture trustee" or "institutional trustee" shall mean the
Indenture Trustee.

                  "obligor" on the  indenture  securities  shall mean the Issuer
and any other obligor on the indenture securities.

                  All other TIA terms used in this Indenture that are defined in
the TIA,  defined by TIA  reference to another  statute or defined by Commission
rule have the meaning assigned to them by such definitions.

<PAGE>

                                   ARTICLE II

                                    THE NOTES

                  SECTION  2.1  Form.  (a) The Class  A-1  Notes,  the Class A-2
Notes,  the Class A-3 Notes,  the Class A-4  Notes,  the Class A-5 Notes and the
Class  B  Notes,   together  with  the  Indenture   Trustee's   certificates  of
authentication,  shall be in  substantially  the form set forth in Exhibit  A-1,
Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit A-5 and Exhibit B,  respectively,
with such appropriate insertions, omissions,  substitutions and other variations
as are  required or  permitted  by this  Indenture,  and may have such  letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may,  consistently  herewith, be determined by the officers executing
such Notes, as evidenced by their execution thereof.  Any portion of the text of
any Note may be set forth on the reverse thereof,  with an appropriate reference
thereto on the face of the Note.

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

                  (c) Each Note  shall be dated the date of its  authentication.
The terms of the Notes set forth in  Exhibit  A-1,  Exhibit  A-2,  Exhibit  A-3,
Exhibit A-4,  Exhibit A-5 and Exhibit B are part of the terms of this  Indenture
and are incorporated herein by reference.

                  SECTION 2.2 Execution,  Authentication  and Delivery.  (a) The
Notes  shall be  executed  on  behalf  of the  Issuer  by any of its  Authorized
Officers.  The  signature  of any such  Authorized  Officer  on the Notes may be
manual or facsimile.

                  (b)  Notes  bearing  the  manual  or  facsimile  signature  of
individuals  who were at any time  Authorized  Officers of the Issuer shall bind
the Issuer,  notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the  authentication and delivery of such Notes or did
not hold such offices at the date of such Notes.

                  (c)  The   Indenture   Trustee   shall,   upon  Issuer  Order,
authenticate and deliver the Notes for original issue in the Classes and initial
aggregate principal amounts as set in the table below.

              Class                                        Initial Aggregate
                                                            Principal Amount

           Class A-1 Notes                                   $   270,000,000

           Class A-2 Notes                                   $   450,000,000

           Class A-3 Notes                                   $ 1,455,000,000

           Class A-4 Notes                                   $ 1,118,000,000

           Class A-5 Notes                                   $   314,091,000

           Class B Notes                                     $   133,595,000

           The aggregate  principal amount of Class A-1 Notes,  Class A-2 Notes,
           Class A-3 Notes,  Class A-4 Notes,  Class A-5 Notes and Class B Notes
           Outstanding  at any  time may not  exceed  those  respective  amounts
           except as provided in Section 2.6.

                            (d) The  Class  A-1 and  Class  A-2  Notes  shall be
           issuable as Book-Entry Notes in minimum denominations of $100,000 and
           in integral  multiples  of $1,000 in excess  thereof.  The Class A-3,
           Class  A-4,  Class  A-5 and  Class  B  Notes  shall  be  issuable  as
           Book-Entry  Notes in minimum  denominations of $1,000 and in integral
           multiples of $1,000 in excess thereof.

                            (e) No Note shall be entitled  to any benefit  under
           this  Indenture or be valid or  obligatory  for any  purpose,  unless
           there   appears  on  such  Note  a  certificate   of   authentication
           substantially  in  the  form  provided  for  herein  executed  by the
           Indenture  Trustee by the manual  signature of one of its  authorized
           signatories,  and such  certificate upon any Note shall be conclusive
           evidence,  and the only  evidence,  that  such  Note  has  been  duly
           authenticated and delivered hereunder.

                            SECTION  2.3  Temporary   Notes.   (a)  Pending  the
           preparation  of definitive  Notes,  the Issuer may execute,  and upon
           receipt of an Issuer Order the Indenture  Trustee shall  authenticate
           and  deliver,   temporary  Notes  that  are  printed,   lithographed,
           typewritten, mimeographed or otherwise produced, substantially of the
           tenor of the  definitive  Notes in lieu of which  they are issued and
           with  such  variations  not  inconsistent  with  the  terms  of  this
           Indenture  as  the  officers   executing  the  temporary   Notes  may
           determine, as evidenced by their execution of such temporary Notes.

                            If  temporary  Notes are  issued,  the Issuer  shall
           cause  definitive Notes to be prepared  without  unreasonable  delay.
           After the preparation of definitive  Notes, the temporary Notes shall
           be exchangeable  for definitive Notes upon surrender of the temporary
           Notes at the  office  or agency of the  Issuer  to be  maintained  as
           provided  in Section  3.2,  without  charge to the  Noteholder.  Upon
           surrender for  cancellation of any one or more temporary  Notes,  the
           Issuer shall execute,  and the Indenture  Trustee shall  authenticate
           and  deliver  in  exchange  therefor,  a  like  principal  amount  of
           definitive Notes of authorized denominations. Until so exchanged, the
           temporary  Notes  shall  in all  respects  be  entitled  to the  same
           benefits under this Indenture as definitive Notes.

                            SECTION  2.4 Tax  Treatment.  The Issuer has entered
           into  this  Indenture,  and the  Notes  shall  be  issued,  with  the
           intention that, for federal, State and local income and franchise tax
           purposes,  the Notes  shall  qualify  as  indebtedness  of the Issuer
           secured by the Indenture Trust Estate.  The Issuer,  by entering into
           this Indenture, and each Noteholder, by its acceptance of a Note (and
           each Note Owner by its  acceptance  of an interest in the  applicable
           Book-Entry  Note),  agree to treat the Notes for  federal,  State and
           local  income and  franchise  tax  purposes  as  indebtedness  of the
           Issuer.

                            SECTION 2.5  Registration;  Registration of Transfer
           and  Exchange.  (a) The Issuer shall cause to be kept a register (the
           "Note Register") in which, subject to such reasonable  regulations as
           it may prescribe,  the Issuer shall provide for the  registration  of
           Notes and the  registration  of  transfers  of Notes.  The  Indenture
           Trustee  initially  shall be the "Note  Registrar" for the purpose of
           registering Notes and transfers of Notes as herein provided. Upon any
           resignation of any Note Registrar,  the Issuer shall promptly appoint
           a successor or, if it elects not to make such an appointment,  assume
           the duties of Note  Registrar.  If a Person other than the  Indenture
           Trustee is appointed by the Issuer as Note Registrar,  (i) the Issuer
           shall  give  the  Indenture  Trustee  prompt  written  notice  of the
           appointment  of such  Note  Registrar  and of the  location,  and any
           change in the  location,  of the Note  Register,  (ii) the  Indenture
           Trustee  shall have the right to  inspect  the Note  Register  at all
           reasonable  times  and  to  obtain  copies  thereof,  and  (iii)  the
           Indenture  Trustee  shall  have the right to rely upon a  certificate
           executed  on behalf of the Note  Registrar  by an  Executive  Officer
           thereof  as to the names and  addresses  of the  Noteholders  and the
           principal amounts and number of such Notes.

                            (b) Reserved

                            (c) Upon surrender for  registration  of transfer of
           any Note at the  office or agency of the Issuer to be  maintained  as
           provided in Section 3.2, if the  requirements of Section  8-401(1) of
           the UCC are met the Issuer shall execute,  and the Indenture  Trustee
           shall authenticate and the Noteholder shall obtain from the Indenture
           Trustee, in the name of the designated transferee or transferees, one
           or more new Notes of the same Class in any  authorized  denomination,
           of a like aggregate principal amount.

                            (d) At the  option of the  Noteholder,  Notes may be
           exchanged  for  other  Notes  of the  same  Class  in any  authorized
           denominations,  of a like aggregate  principal amount, upon surrender
           of the Notes to be exchanged  at such office or agency.  Whenever any
           Notes are so surrendered for exchange, if the requirements of Section
           8-401(1) of the UCC are met, the Issuer shall execute,  the Indenture
           Trustee shall authenticate,  and the Noteholder shall obtain from the
           Indenture  Trustee,  the  Notes  which  the  Noteholder  making  such
           exchange is entitled to receive.

                            (e)  All  Notes  issued  upon  any  registration  of
           transfer or exchange of Notes shall be the valid  obligations  of the
           Issuer,  evidencing  the same debt, and entitled to the same benefits
           under this Indenture as the Notes  surrendered upon such registration
           of transfer or exchange.

                            (f)  Every  Note   presented  or   surrendered   for
           registration  of transfer or exchange  shall be (i) duly endorsed by,
           or be  accompanied  by a  written  instrument  of  transfer  in  form
           satisfactory   to  the  Indenture   Trustee  duly  executed  by,  the
           Noteholder  thereof or such Noteholder's  attorney duly authorized in
           writing,  with such  signature  guaranteed by an "eligible  guarantor
           institution"  meeting the  requirements of the Note Registrar,  which
           requirements  include  membership or  participation  in STAMP or such
           other "signature  guarantee program" as may be determined by the Note
           Registrar  in addition  to, or in  substitution  for,  STAMP,  all in
           accordance with the Securities Exchange Act of 1934, as amended,  and
           (ii) accompanied by such other documents or evidence as the Indenture
           Trustee may require.

                            (g) No service  charge shall be made to a Noteholder
           for any registration of transfer or exchange of Notes, but the Issuer
           may  require  payment of a sum  sufficient  to cover any tax or other
           governmental  charge  that  may be  imposed  in  connection  with any
           registration  of transfer or exchange of Notes,  other than exchanges
           pursuant to Section 2.3 or 9.6 not involving any transfer.

                            (h) The  preceding  provisions  of this  Section 2.5
           notwithstanding,  the Issuer  shall not be  required  to make and the
           Note  Registrar  need not  register  transfers  or exchanges of Notes
           selected for  redemption  or of any Note for a period of fifteen (15)
           days preceding the Distribution  Date for any payment with respect to
           such Note.

                            SECTION  2.6  Mutilated,  Destroyed,  Lost or Stolen
           Notes.  (a) If (i) any mutilated Note is surrendered to the Indenture
           Trustee,   or  the  Indenture   Trustee  receives   evidence  to  its
           satisfaction of the destruction,  loss or theft of any Note, and (ii)
           there  is  delivered  to  the  Indenture  Trustee  such  security  or
           indemnity  as may be  required  by it to  hold  the  Issuer  and  the
           Indenture  Trustee  harmless,  then,  in the absence of notice to the
           Issuer,  the Note  Registrar or the Indenture  Trustee that such Note
           has been  acquired  by a protected  purchaser,  as defined in Section
           8-303 of the UCC, and provided that the requirements of Section 8-405
           of the UCC are met, the Issuer shall execute, and upon Issuer Request
           the Indenture Trustee shall authenticate and deliver, in exchange for
           or in lieu of any such mutilated,  destroyed,  lost or stolen Note, a
           replacement Note of the same Class;  provided,  however,  that if any
           such destroyed,  lost or stolen Note, but not a mutilated Note, shall
           have  become or within  seven (7) days shall be due and  payable,  or
           shall  have  been  called  for  redemption,   instead  of  issuing  a
           replacement  Note, the Issuer may pay such destroyed,  lost or stolen
           Note  when so due or  payable  or upon the  Redemption  Date  without
           surrender thereof. If, after the delivery of such replacement Note or
           payment of a destroyed,  lost or stolen Note  pursuant to the proviso
           to the preceding sentence, a protected purchaser of the original Note
           in lieu of which  such  replacement  Note  was  issued  presents  for
           payment such  original  Note,  the Issuer and the  Indenture  Trustee
           shall be entitled to recover such  replacement Note (or such payment)
           from the Person to whom it was  delivered  or any Person  taking such
           replacement  Note from such Person to whom such  replacement Note was
           delivered  or  any  assignee  of  such  Person,  except  a  protected
           purchaser,  and shall be  entitled  to recover  upon the  security or
           indemnity provided therefor to the extent of any loss,  damage,  cost
           or  expense  incurred  by the  Issuer  or the  Indenture  Trustee  in
           connection therewith.

                            (b) Upon the issuance of any replacement  Note under
           this  Section  2.6,  the  Issuer  may  require  the  payment  by  the
           Noteholder of such Note of a sum sufficient to cover any tax or other
           governmental  charge that may be imposed in relation  thereto and any
           other  reasonable  expenses  (including  the fees and expenses of the
           Indenture Trustee) connected therewith.

                            (c) Every  replacement  Note issued pursuant to this
           Section  2.6 in  replacement  of any  mutilated,  destroyed,  lost or
           stolen  Note shall  constitute  an  original  additional  contractual
           obligation of the Issuer,  whether or not the  mutilated,  destroyed,
           lost or stolen Note shall be at any time  enforceable by anyone,  and
           shall be entitled to all the benefits of this  Indenture  equally and
           proportionately with any and all other Notes duly issued hereunder.

                            (d) The provisions of this Section 2.6 are exclusive
           and shall  preclude  (to the  extent  lawful)  all other  rights  and
           remedies  with respect to the  replacement  or payment of  mutilated,
           destroyed, lost or stolen Notes.

                            SECTION  2.7  Persons  Deemed   OwnersPrior  to  due
           presentment for registration of transfer of any Note, the Issuer, the
           Indenture  Trustee  and any  agent  of the  Issuer  or the  Indenture
           Trustee may treat the Person in whose name any Note is registered (as
           of the  day of  determination)  as the  owner  of such  Note  for the
           purpose of receiving  payments of principal of and interest,  if any,
           on such Note and for all other  purposes  whatsoever,  whether or not
           such Note be overdue,  and none of the Issuer,  the Indenture Trustee
           or any agent of the Issuer or the Indenture Trustee shall be affected
           by notice to the contrary.

                         SECTION  2.8  Payment  of   Principal   and   Interest;
           Defaulted Interest. (a) The Class A-1 Notes, the Class A-2 Notes, the
           Class A-3  Notes,  the Class A-4  Notes,  the Class A-5 Notes and the
           Class B Notes shall accrue  interest at the Class A-1 Rate, the Class
           A-2 Rate,  the Class A-3 Rate, the Class A-4 Rate, the Class A-5 Rate
           and the  Class B Rate,  respectively,  as set forth in  Exhibit  A-1,
           Exhibit  A-2,  Exhibit A-3,  Exhibit A-4,  Exhibit A-5 and Exhibit B,
           respectively,  and such  interest  shall be due and  payable  on each
           Distribution Date as specified  therein,  subject to Section 3.1. Any
           installment  of interest or  principal,  if any,  payable on any Note
           that is  punctually  paid or duly  provided  for by the Issuer on the
           applicable  Distribution  Date  shall be paid to the  Person in whose
           name such Note (or one or more  Predecessor  Notes) is  registered on
           the Record Date  either by wire  transfer  in  immediately  available
           funds,  to the account of such  Noteholder  at a bank or other entity
           having appropriate facilities therefor, if such Noteholder shall have
           provided to the Note Registrar  appropriate  written  instructions at
           least five (5) Business Days prior to such Distribution Date and such
           Noteholder's  Notes in the aggregate  evidence a denomination  of not
           less than $1,000,000, or, if not, by check mailed first-class postage
           prepaid to such  Person's  address as it appears on the Note Register
           on such Record Date; provided that, unless Definitive Notes have been
           issued to Note Owners pursuant to Section 2.13, with respect to Notes
           registered  on the  Record  Date in the  name of the  nominee  of the
           Clearing Agency  (initially,  such nominee to be Cede & Co.), payment
           shall be made by wire transfer in immediately  available funds to the
           account  designated  by  such  nominee,  and  except  for  the  final
           installment  of  principal  payable  with  respect  to such Note on a
           Distribution Date,  Redemption Date or the applicable Final Scheduled
           Distribution  Date,  which  shall be payable as provided  below.  The
           funds  represented by any such checks returned  undelivered  shall be
           held in accordance with Section 3.3.

                            (b) The  principal  of each Note shall be payable in
           installments  on each  Distribution  Date as provided in the forms of
           Notes set forth in Exhibit  A-1,  Exhibit A-2,  Exhibit A-3,  Exhibit
           A-4, Exhibit A-5 and Exhibit B hereto. Notwithstanding the foregoing,
           the entire  unpaid  principal  amount of each Class of Notes shall be
           due and  payable,  if not  previously  paid,  on the date on which an
           Event of  Default  shall  have  occurred  and be  continuing,  if the
           Indenture  Trustee or the  Noteholders  of Notes  evidencing not less
           than a majority  of the Note  Balance of the  Controlling  Note Class
           have  declared  the Notes to be  immediately  due and  payable in the
           manner provided in Section 5.2. All principal  payments on each Class
           of Notes  shall be made pro  rata to the  Noteholders  of such  Class
           entitled  thereto.  The Indenture  Trustee shall notify the Person in
           whose  name a Note is  registered  at the  close of  business  on the
           Record  Date  preceding  the  Distribution  Date on which the  Issuer
           expects  that the final  installment  of principal of and interest on
           such Note shall be paid.  Such notice shall be mailed or  transmitted
           by facsimile prior to such final  Distribution Date and shall specify
           that such final  installment  shall be payable only upon presentation
           and  surrender  of such Note and shall  specify  the place where such
           Note  may  be  presented   and   surrendered   for  payment  of  such
           installment.  Notices in connection with redemption of Notes shall be
           mailed to Noteholders as provided in Section 10.2.

                            (c) If the Issuer  defaults in a payment of interest
           on the Notes, the Issuer shall pay defaulted  interest (plus interest
           on such  defaulted  interest to the extent  lawful) at the applicable
           Note Interest Rate on the  Distribution  Date following such default.
           The Issuer shall pay such  defaulted  interest to the Persons who are
           Noteholders on the Record Date for such following Distribution Date.

                            SECTION 2.9 Cancellation.  All Notes surrendered for
           payment,  registration of transfer,  exchange or redemption shall, if
           surrendered  to any  Person  other  than the  Indenture  Trustee,  be
           delivered to the Indenture Trustee and shall be promptly cancelled by
           the  Indenture  Trustee.  The Issuer  may at any time  deliver to the
           Indenture Trustee for cancellation any Notes previously authenticated
           and  delivered  hereunder  which the Issuer may have  acquired in any
           manner  whatsoever,  and all  Notes so  delivered  shall be  promptly
           cancelled by the Indenture  Trustee.  No Notes shall be authenticated
           in lieu of or in exchange for any Notes cancelled as provided in this
           Section 2.9,  except as expressly  permitted by this  Indenture.  All
           cancelled  Notes may be held or disposed of by the Indenture  Trustee
           in accordance  with its standard  retention or disposal  policy as in
           effect at the time unless the Issuer  shall direct by an Issuer Order
           that they be  destroyed  or returned to it and so long as such Issuer
           Order is timely and the Notes have not been previously disposed of by
           the Indenture Trustee.

                            SECTION  2.10  Release  of  Collateral.  Subject  to
           Section  11.1 and the terms of the  Basic  Documents,  the  Indenture
           Trustee shall release  property from the lien of this  Indenture only
           upon  receipt  of an  Issuer  Request  accompanied  by  an  Officer's
           Certificate,  an Opinion of Counsel and  Independent  Certificates in
           accordance  with TIA Sections  314(c) and  314(d)(1) or an Opinion of
           Counsel in lieu of such  Independent  Certificates to the effect that
           the TIA does not require any such  Independent  Certificates.  If the
           Commission  shall issue an exemptive  order under TIA Section  304(d)
           modifying the Owner Trustee's  obligations  under TIA Sections 314(c)
           and  314(d)(1),  subject to  Section  11.1 and the terms of the Basic
           Documents, the Indenture Trustee shall release property from the lien
           of this  Indenture in accordance  with the  conditions and procedures
           set forth in such exemptive order.

                            SECTION  2.11  Book-Entry  Notes.  The  Notes,  upon
           original  issuance,  shall be issued in the form of typewritten Notes
           representing the Book-Entry  Notes, to be delivered to The Depository
           Trust Company,  the initial Clearing Agency, by, or on behalf of, the
           Issuer.  The  Book-Entry  Notes shall be registered  initially on the
           Note  Register in the name of Cede & Co.,  the nominee of the initial
           Clearing Agency, and no Note Owner thereof shall receive a Definitive
           Note (as defined below)  representing  such Note Owner's  interest in
           such  Note,  except as  provided  in Section  2.13.  Unless and until
           definitive, fully registered Notes (the "Definitive Notes") have been
           issued to such Note Owners pursuant to Section 2.13:

                  (i)  the provisions of this Section 2.11 shall be in full
                  force and effect;

                  (ii) the Note  Registrar  and the  Indenture  Trustee shall be
                  entitled to deal with the Clearing  Agency for all purposes of
                  this  Indenture  (including  the payment of  principal  of and
                  interest   on  the   Book-Entry   Notes  and  the   giving  of
                  instructions or directions  hereunder) as the sole Noteholder,
                  and shall have no obligation to the Note Owners;

                  (iii) to the extent that the  provisions  of this Section 2.11
                  conflict  with any other  provisions  of this  Indenture,  the
                  provisions of this Section 2.11 shall control;

                  (iv) the rights of Note Owners shall be exercised only through
                  the Clearing Agency and shall be limited to those  established
                  by law  and  agreements  between  such  Note  Owners  and  the
                  Clearing  Agency  and/or  the  Clearing  Agency   Participants
                  pursuant to the Note  Depository  Agreement.  Unless and until
                  Definitive Notes are issued to Note Owners pursuant to Section
                  2.13,  the  initial  Clearing  Agency  shall  make  book-entry
                  transfers among the Clearing Agency  Participants  and receive
                  and  transmit  payments of  principal  of and  interest on the
                  Book-Entry Notes to such Clearing Agency Participants; and

                  (v) whenever this Indenture  requires or permits actions to be
                  taken based upon  instructions or directions of Noteholders of
                  Notes evidencing a specified percentage of the Note Balance of
                  the Notes  Outstanding  (or any Class  thereof,  including the
                  Controlling Note Class) the Clearing Agency shall be deemed to
                  represent  such  percentage  only  to the  extent  that it has
                  received  instructions  to such effect from Note Owners and/or
                  Clearing   Agency   Participants   owning   or   representing,
                  respectively,  such  required  percentage  of  the  beneficial
                  interest of the Notes Outstanding (or Class thereof, including
                  the   Controlling   Note   Class)  and  has   delivered   such
                  instructions to the Indenture Trustee.

                            SECTION 2.12 Notices to Clearing Agency.  Whenever a
           notice or other  communication to the Noteholders of Book-Entry Notes
           is required under this Indenture,  unless and until  Definitive Notes
           shall have been issued to the Note Owners  pursuant to Section  2.13,
           the Indenture Trustee shall give all such notices and  communications
           specified  herein to be given to Noteholders  of Book-Entry  Notes to
           the  Clearing  Agency,  and  shall  have no  obligation  to such Note
           Owners.

                            SECTION 2.13 Definitive  Notes.  With respect to any
           Class  or  Classes  of  Book-Entry  Notes,  if (i) the  Administrator
           advises the Indenture  Trustee in writing that the Clearing Agency is
           no longer willing or able to properly discharge its  responsibilities
           with respect to such Class of Book-Entry Notes and the  Administrator
           is unable to locate a qualified successor, (ii) the Administrator, at
           its option,  advises the Indenture  Trustee in writing that it elects
           to terminate the  book-entry  system  through the Clearing  Agency or
           (iii)  after the  occurrence  of an Event of  Default  or an Event of
           Servicing Termination,  Note Owners of such Class of Book-Entry Notes
           evidencing  beneficial interests aggregating not less than a majority
           of the Note  Balance of such Class advise the  Indenture  Trustee and
           the Clearing Agency in writing that the  continuation of a book-entry
           system through the Clearing Agency is no longer in the best interests
           of such Class of Note Owners,  then the Clearing  Agency shall notify
           all Note  Owners  of such  Class  and the  Indenture  Trustee  of the
           occurrence of such event and of the  availability of Definitive Notes
           to the Note Owners of the applicable  Class requesting the same. Upon
           surrender  to  the  Indenture   Trustee  of  the  typewritten   Notes
           representing the Book-Entry Notes by the Clearing Agency, accompanied
           by  registration  instructions,  the  Issuer  shall  execute  and the
           Indenture   Trustee  shall   authenticate  the  Definitive  Notes  in
           accordance with the instructions of the Clearing Agency.  None of the
           Issuer,  the Note Registrar or the Indenture  Trustee shall be liable
           for any delay in delivery of such  instructions  and may conclusively
           rely on, and shall be  protected  in relying on,  such  instructions.
           Upon the issuance of Definitive  Notes to Note Owners,  the Indenture
           Trustee  shall  recognize  the  holders of such  Definitive  Notes as
           Noteholders.

                            SECTION   2.14   Authenticating   Agents.   (a)  The
           Indenture   Trustee  may  appoint  one  or  more  Persons  (each,  an
           "Authenticating  Agent")  with power to act on its behalf and subject
           to its direction in the  authentication  of Notes in connection  with
           issuance,  transfers and exchanges  under Sections 2.2, 2.3, 2.5, 2.6
           and 9.6,  as fully to all  intents  and  purposes as though each such
           Authenticating  Agent had been expressly authorized by those Sections
           to authenticate  such Notes. For all purposes of this Indenture,  the
           authentication of Notes by an  Authenticating  Agent pursuant to this
           Section  2.14 shall be deemed to be the  authentication  of Notes "by
           the Indenture Trustee."

                            (b) Any  corporation  into which any  Authenticating
           Agent  may  be  merged  or   converted   or  with  which  it  may  be
           consolidated,   or  any   corporation   resulting  from  any  merger,
           consolidation or conversion to which any  Authenticating  Agent shall
           be a party, or any corporation succeeding to all or substantially all
           of the corporate trust business of any Authenticating Agent, shall be
           the successor of such  Authenticating  Agent  hereunder,  without the
           execution  or filing of any  further  act on the part of the  parties
           hereto or such Authenticating Agent or such successor corporation.

                            (c) Any Authenticating  Agent may at any time resign
           by giving written notice of resignation to the Indenture  Trustee and
           the Owner  Trustee.  The Indenture  Trustee may at any time terminate
           the agency of any  Authenticating  Agent by giving  written notice of
           termination to such Authenticating Agent and the Owner Trustee.  Upon
           receiving such notice of resignation or upon such a termination,  the
           Indenture  Trustee may appoint a successor  Authenticating  Agent and
           shall  give  written  notice  of any such  appointment  to the  Owner
           Trustee.

                            (d)  The   Administrator   agrees  to  pay  to  each
           Authenticating  Agent from time to time reasonable  compensation  for
           its  services.  The  provisions  of  Sections  2.9 and 6.4  shall  be
           applicable to any Authenticating Agent.

<PAGE>

                                   ARTICLE III

                                    COVENANTS

                            SECTION 3.1 Payment of Principal and  Interest.  The
           Issuer shall duly and  punctually  pay the principal of and interest,
           if any,  on the Notes in  accordance  with the terms of the Notes and
           this Indenture. Without limiting the foregoing and subject to Section
           8.2, on each  Distribution Date the Issuer shall cause to be paid all
           amounts  on  deposit  in the  Collection  Account  and the  Principal
           Distribution  Account with respect to the Collection Period preceding
           such Distribution Date and deposited therein pursuant to the Sale and
           Servicing Agreement.  Amounts properly withheld under the Code by any
           Person from a payment to any Noteholder of interest and/or  principal
           shall  be  considered  as  having  been  paid by the  Issuer  to such
           Noteholder for all purposes of this Indenture.

                            SECTION  3.2  Maintenance  of Office or Agency.  The
           Issuer shall  maintain in the Borough of  Manhattan,  The City of New
           York,  an  office  or  agency  where  Notes  may be  surrendered  for
           registration  of transfer or exchange,  and where notices and demands
           to or upon the Issuer in respect of the Notes and this  Indenture may
           be served. The Issuer hereby initially appoints the Indenture Trustee
           to serve as its agent for the  foregoing  purposes.  The Issuer shall
           give prompt written notice to the Indenture  Trustee of the location,
           and of any change in the location,  of any such office or agency. If,
           at any time,  the Issuer  shall fail to  maintain  any such office or
           agency  or shall  fail to  furnish  the  Indenture  Trustee  with the
           address thereof, such surrenders,  notices and demands may be made or
           served at the Corporate Trust Office,  and the Issuer hereby appoints
           the  Indenture  Trustee as its agent to receive all such  surrenders,
           notices and demands.

                            SECTION 3.3 Money for  Payments To Be Held in Trust.
           (a) As provided in Sections  8.2 and 5.4(b),  all payments of amounts
           due and  payable  with  respect to any Notes that are to be made from
           amounts  withdrawn from the Trust  Accounts and the Payahead  Account
           shall be made on behalf of the Issuer by the Indenture  Trustee or by
           another Note Paying Agent, and no amounts so withdrawn from the Trust
           Accounts and the Payahead Account for payments of Notes shall be paid
           over to the Issuer, except as provided in this Section 3.3.

                            (b)  On  or  before  each   Distribution   Date  and
           Redemption Date, the Issuer shall deposit or cause to be deposited in
           the Collection Account an aggregate sum sufficient to pay the amounts
           then  becoming due under the Notes,  such sum to be held in trust for
           the benefit of the  Persons  entitled  thereto,  and (unless the Note
           Paying Agent is the  Indenture  Trustee)  shall  promptly  notify the
           Indenture Trustee of its action or failure so to act.

                            (c) The Issuer  shall cause each Note  Paying  Agent
           other  than the  Indenture  Trustee  to  execute  and  deliver to the
           Indenture Trustee an instrument in which such Note Paying Agent shall
           agree with the Indenture  Trustee (and if the Indenture  Trustee acts
           as Note Paying Agent, it hereby so agrees), subject to the provisions
           of this Section 3.3, that such Note Paying Agent shall:

                  (i) hold all sums held by it for the  payment of  amounts  due
                  with  respect  to the  Notes in trust for the  benefit  of the
                  Persons entitled thereto until such sums shall be paid to such
                  Persons or  otherwise  disposed of as herein  provided and pay
                  such sums to such Persons as herein provided;

                  (ii) give the Indenture  Trustee  notice of any default by the
                  Issuer (or any other  obligor  upon the Notes) of which it has
                  actual  knowledge in the making of any payment  required to be
                  made with respect to the Notes;

                  (iii) at any time during the  continuance of any such default,
                  upon the written request of the Indenture  Trustee,  forthwith
                  pay to the Indenture Trustee all sums so held in trust by such
                  Note Paying Agent;

                  (iv)  immediately  resign as a Note Paying Agent and forthwith
                  pay to the Indenture  Trustee all sums held by it in trust for
                  the  payment  of Notes if at any  time it  ceases  to meet the
                  standards  required  to be met by a Note  Paying  Agent at the
                  time of its appointment; and

                  (v) comply with all  requirements of the Code and any State or
                  local  tax  law  with  respect  to the  withholding  from  any
                  payments made by it on any Notes of any applicable withholding
                  taxes  imposed  thereon  and with  respect  to any  applicable
                  reporting requirements in connection therewith.

                            (d) The Issuer may at any time,  for the  purpose of
           obtaining the satisfaction and discharge of this Indenture or for any
           other purpose, by Issuer Order direct any Note Paying Agent to pay to
           the  Indenture  Trustee  all sums held in trust by such  Note  Paying
           Agent,  such sums to be held by the  Indenture  Trustee upon the same
           trusts as those  upon  which  the sums were held by such Note  Paying
           Agent;  and  upon  such  payment  by any  Note  Paying  Agent  to the
           Indenture Trustee,  such Note Paying Agent shall be released from all
           further liability with respect to such money.

                            (e)  Subject  to  applicable  laws with  respect  to
           escheat of funds, any money held by the Indenture Trustee or any Note
           Paying  Agent in trust for the payment of any amount due with respect
           to any Note and  remaining  unclaimed  for two (2) years  after  such
           amount has become due and payable shall be discharged from such trust
           and be paid to the Issuer on Issuer  Request;  and the  Noteholder of
           such Note shall thereafter,  as an unsecured  general creditor,  look
           only to the Issuer for payment thereof (but only to the extent of the
           amounts so paid to the Issuer),  and all  liability of the  Indenture
           Trustee or such Note  Paying  Agent with  respect to such trust money
           shall thereupon cease; provided,  however, that the Indenture Trustee
           or such Note Paying  Agent,  before  being  required to make any such
           repayment,  shall at the expense and direction of the Issuer cause to
           be published once, in a newspaper  published in the English language,
           customarily published on each Business Day and of general circulation
           in The City of New York, notice that such money remains unclaimed and
           that,  after a date specified  therein,  which shall not be less than
           thirty  (30) days from the date of such  publication,  any  unclaimed
           balance of such money then  remaining  shall be repaid to the Issuer.
           The Indenture Trustee shall also adopt and employ, at the expense and
           direction of the Issuer,  any other  reasonable means of notification
           of such repayment  (including,  but not limited to, mailing notice of
           such repayment to  Noteholders  whose Notes have been called but have
           not been  surrendered for redemption or whose right to or interest in
           monies  due and  payable  but not  claimed is  determinable  from the
           records of the Indenture  Trustee or of any Note Paying Agent, at the
           last address of record for each such Noteholder).

                            SECTION 3.4 Existence. The Issuer shall keep in full
           effect its existence, rights and franchises as a business trust under
           the  laws  of the  State  of  Delaware  (unless  it  becomes,  or any
           successor Issuer hereunder is or becomes, organized under the laws of
           any other State or of the United States of America, in which case the
           Issuer shall keep in full effect its existence, rights and franchises
           under  the laws of such  other  jurisdiction)  and shall  obtain  and
           preserve its  qualification  to do business in each  jurisdiction  in
           which such  qualification  is or shall be  necessary  to protect  the
           validity  and  enforceability  of  this  Indenture,  the  Notes,  the
           Collateral  and each other  instrument  or agreement  included in the
           Indenture Trust Estate.

                            SECTION 3.5  Protection  of Indenture  Trust Estate.
           The  Issuer  shall from time to time  execute  and  deliver  all such
           supplements and amendments hereto and all such financing  statements,
           continuation  statements,  instruments of further assurance and other
           instruments,  and shall take such other action necessary or advisable
           to:

                  (i) maintain or preserve the lien and security  interest  (and
                  the  priority  thereof)  of this  Indenture  or carry out more
                  effectively the purposes hereof;

                  (ii)  perfect, publish notice of or protect the validity of
                  any Grant made or to be made by this Indenture;

                  (iii)  enforce any of the Collateral; or

                  (iv) preserve and defend title to the  Indenture  Trust Estate
                  and the rights of the Indenture Trustee and the Noteholders in
                  such Indenture Trust Estate against the claims of all Persons.

           The Issuer  hereby  designates  the  Indenture  Trustee its agent and
           attorney-in-fact  to execute any  financing  statement,  continuation
           statement  or other  instrument  required to be executed  pursuant to
           this Section 3.5; provided, however, that the Indenture Trustee shall
           be  under  no  obligation  to  file  any  such  financing  statement,
           continuation  statement or other  instrument  required to be executed
           pursuant to this Section 3.5.

                            SECTION 3.6  Opinions as to  Indenture  Trust Estate
           (a) On the Closing  Date,  the Issuer shall  furnish to the Indenture
           Trustee an Opinion of Counsel  either stating that, in the opinion of
           such  counsel,  such  action  has  been  taken  with  respect  to the
           recording and filing of this Indenture,  any indentures  supplemental
           hereto,  and any other requisite  documents,  and with respect to the
           execution and filing of any  financing  statements  and  continuation
           statements,  as are necessary to perfect and make  effective the lien
           and security  interest of this  Indenture and reciting the details of
           such action, or stating that, in the opinion of such counsel, no such
           action  is  necessary  to  make  such  lien  and  security   interest
           effective.

                            (b) On or  before  April 30 in each  calendar  year,
           beginning in 2001, the Issuer shall furnish to the Indenture  Trustee
           an Opinion of Counsel  either  stating  that,  in the opinion of such
           counsel,  such action has been taken with  respect to the  recording,
           filing,  re-recording and refiling of this Indenture,  any indentures
           supplemental  hereto  and any  other  requisite  documents  and  with
           respect to the execution and filing of any financing  statements  and
           continuation  statements and any other action that may be required by
           law as is  necessary  to  maintain  the  lien and  security  interest
           created by this  Indenture and reciting the details of such action or
           stating  that in the  opinion  of such  counsel  no  such  action  is
           necessary to maintain such lien and security  interest.  Such Opinion
           of Counsel shall also describe the  recording,  filing,  re-recording
           and refiling of this Indenture,  any indentures  supplemental  hereto
           and any other requisite documents and the execution and filing of any
           financing  statements and continuation  statements that shall, in the
           opinion  of such  counsel,  be  required  to  maintain  the  lien and
           security  interest of this Indenture  until April 30 in the following
           calendar year.

                            SECTION 3.7 Performance of Obligations; Servicing of
           Receivables.  (a) The Issuer  shall not take any action and shall use
           its best  efforts not to permit any action to be taken by others that
           would release any Person from any of such Person's material covenants
           or  obligations  under any  instrument  or agreement  included in the
           Indenture  Trust  Estate  or  that  would  result  in the  amendment,
           hypothecation,  subordination, termination or discharge of, or impair
           the validity or  effectiveness  of, any such instrument or agreement,
           except as expressly  provided in this  Indenture  and the other Basic
           Documents.

                            (b) The Issuer may  contract  with other  Persons to
           assist it in  performing  its duties  under this  Indenture,  and any
           performance  of such duties by a Person  identified  to the Indenture
           Trustee in an Officer's  Certificate of the Issuer shall be deemed to
           be action taken by the Issuer.  Initially,  the Issuer has contracted
           with the  Servicer  and the  Administrator  to assist  the  Issuer in
           performing its duties under this Indenture.

                            (c) The Issuer shall punctually  perform and observe
           all of its  obligations  and agreements  contained in this Indenture,
           the other  Basic  Documents  and in the  instruments  and  agreements
           included in the Indenture  Trust Estate,  including,  but not limited
           to,  filing or  causing  to be filed  all  financing  statements  and
           continuation  statements  required  to be filed  under the UCC by the
           terms  of this  Indenture  and the Sale and  Servicing  Agreement  in
           accordance  with and within the time periods  provided for herein and
           therein.  Except as otherwise expressly provided therein,  the Issuer
           shall not waive,  amend,  modify,  supplement  or terminate any Basic
           Document  or  any  provision  thereof  without  the  consent  of  the
           Indenture  Trustee and the  Noteholders of Notes  evidencing not less
           than a  majority  of the Note  Balance  of each  Class of Notes  then
           Outstanding, voting separately.

                            (d)  If  the  Issuer  shall  have  knowledge  of the
           occurrence  of an Event of Servicing  Termination  under the Sale and
           Servicing  Agreement,  the Issuer shall promptly notify the Indenture
           Trustee and the Rating  Agencies  thereof  and shall  specify in such
           notice the  action,  if any,  the Issuer is taking in respect of such
           default.  If an Event of Servicing  Termination  shall arise from the
           failure of the  Servicer to perform any of its duties or  obligations
           under  the  Sale  and  Servicing   Agreement   with  respect  to  the
           Receivables,  the Issuer shall take all reasonable steps available to
           it to remedy such failure.

                            (e) As  promptly  as  possible  after the  giving of
           notice of termination  to the Servicer of the  Servicer's  rights and
           powers pursuant to Section 8.1 of the Sale and Servicing Agreement or
           the Servicer's  resignation in accordance  with the terms of the Sale
           and  Servicing  Agreement,  the  Issuer  shall  appoint  a  Successor
           Servicer   meeting  the   requirements  of  the  Sale  and  Servicing
           Agreement,  and such Successor  Servicer shall accept its appointment
           by a  written  assumption  in a  form  acceptable  to  the  Indenture
           Trustee.  In the  event  that  a  Successor  Servicer  has  not  been
           appointed  at the time when the  Servicer  ceases to act as Servicer,
           the Indenture  Trustee without further action shall  automatically be
           appointed the Successor  Servicer.  If the Indenture Trustee shall be
           legally  unable to act as  Successor  Servicer,  it may  appoint,  or
           petition a court of competent  jurisdiction  to appoint,  a Successor
           Servicer.  The Indenture Trustee may resign as the Servicer by giving
           written  notice of such  resignation  to the Issuer and in such event
           shall be released from such duties and obligations,  such release not
           to be effective until the date a new servicer enters into a servicing
           agreement  with the Issuer as provided  below.  Upon  delivery of any
           such notice to the Issuer,  the Issuer shall obtain a new servicer as
           the Successor  Servicer under the Sale and Servicing  Agreement.  Any
           Successor Servicer (other than the Indenture Trustee) shall (i) be an
           established   institution  having  a  net  worth  of  not  less  than
           $100,000,000  and whose regular  business shall include the servicing
           of automotive  receivables and (ii) enter into a servicing  agreement
           with the  Issuer  having  substantially  the same  provisions  as the
           provisions  of the Sale and  Servicing  Agreement  applicable  to the
           Servicer.  If,  within  thirty  (30) days after the  delivery  of the
           notice  referred to above,  the Issuer shall not have obtained such a
           new servicer,  the Indenture  Trustee may appoint,  or may petition a
           court of competent  jurisdiction to appoint, a Successor Servicer. In
           connection with any such appointment,  the Indenture Trustee may make
           such  arrangements  for the  compensation of such successor as it and
           such  successor  shall agree,  subject to the  limitations  set forth
           below and in the Sale and  Servicing  Agreement,  and, in  accordance
           with  Section  8.2 of the Sale and  Servicing  Agreement,  the Issuer
           shall enter into an agreement  with such  successor for the servicing
           of the  Receivables  (such  agreement  to be in  form  and  substance
           satisfactory  to the Indenture  Trustee).  If the  Indenture  Trustee
           shall succeed to the Servicer's duties as servicer of the Receivables
           as provided herein, it shall do so in its individual capacity and not
           in its capacity as Indenture Trustee and, accordingly, the provisions
           of Article VI hereof shall be inapplicable  to the Indenture  Trustee
           in its duties as the  successor to the Servicer and the  servicing of
           the Receivables. In case the Indenture Trustee shall become successor
           to the Servicer under the Sale and Servicing Agreement, the Indenture
           Trustee  shall be  entitled  to  appoint as  Servicer  any one of its
           Affiliates;  provided that the Indenture Trustee,  in its capacity as
           the Servicer,  shall be fully liable for the actions and omissions of
           such Affiliate in such capacity as Successor Servicer.

                            (f) Upon any  termination of the  Servicer's  rights
           and powers pursuant to the Sale and Servicing  Agreement,  the Issuer
           shall promptly notify the Indenture  Trustee.  As soon as a Successor
           Servicer is  appointed  by the Issuer,  the Issuer  shall  notify the
           Indenture Trustee of such appointment,  specifying in such notice the
           name and address of such Successor Servicer.

                            (g) Without  derogating  from the absolute nature of
           the assignment  granted to the Indenture Trustee under this Indenture
           or the rights of the Indenture Trustee  hereunder,  the Issuer hereby
           agrees that it shall not,  without the prior  written  consent of the
           Indenture  Trustee or the  Noteholders  of Notes  evidencing not less
           than a  majority  in Note  Balance of the Notes  Outstanding,  amend,
           modify, waive,  supplement,  terminate or surrender,  or agree to any
           amendment, modification, supplement, termination, waiver or surrender
           of,  the terms of any  Collateral  (except  to the  extent  otherwise
           provided  in the Sale and  Servicing  Agreement  or the  other  Basic
           Documents).

                            SECTION 3.8 Negative Covenants. So long as any Notes
           are Outstanding, the Issuer shall not:

                  (i) except as expressly permitted by this Indenture, the Trust
                  Agreement,  the Purchase  Agreement or the Sale and  Servicing
                  Agreement,  sell,  transfer,  exchange or otherwise dispose of
                  any of the properties or assets of the Issuer, including those
                  included in the Indenture Trust Estate,  unless directed to do
                  so by the Indenture Trustee;

                  (ii)  claim  any  credit  on, or make any  deduction  from the
                  principal or interest  payable in respect of, the Notes (other
                  than amounts  properly  withheld from such payments  under the
                  Code) or  assert  any  claim  against  any  present  or former
                  Noteholder  by reason of the  payment  of the taxes  levied or
                  assessed upon the Trust or the Indenture Trust Estate;

                  (iii)  dissolve or liquidate in whole or in part; or

                  (iv)  (A)  permit  the  validity  or   effectiveness  of  this
                  Indenture to be impaired, or permit the lien of this Indenture
                  to  be  amended,  hypothecated,  subordinated,  terminated  or
                  discharged,  or  permit  any  Person to be  released  from any
                  covenants or obligations  with respect to the Notes under this
                  Indenture  except as may be expressly  permitted  hereby,  (B)
                  permit any lien,  charge,  excise,  claim,  security interest,
                  mortgage  or other  encumbrance  (other  than the lien of this
                  Indenture)  to be created on or extend to or  otherwise  arise
                  upon or burden  the  assets  of the  Issuer,  including  those
                  included in the Indenture Trust Estate, or any part thereof or
                  any interest  therein or the proceeds  thereof (other than tax
                  liens,   mechanics'  liens  and  other  liens  that  arise  by
                  operation of law, in each case on any of the Financed Vehicles
                  and arising solely as a result of an action or omission of the
                  related  Obligor) or (C) permit the lien of this Indenture not
                  to constitute a valid first priority  (other than with respect
                  to any such tax,  mechanics' or other lien) security  interest
                  in the Indenture Trust Estate.

                            SECTION 3.9 Annual  Statement as to  Compliance  The
           Issuer shall deliver to the Indenture Trustee,  within 120 days after
           the end of each calendar year, an Officer's  Certificate  stating, as
           to the Authorized Officer signing such Officer's Certificate, that:

                  (i) a review of the  activities of the Issuer during such year
                  and of its  performance  under  this  Indenture  has been made
                  under such Authorized Officer's supervision; and

                  (ii) to the best of such Authorized Officer's knowledge, based
                  on such review,  the Issuer has complied  with all  conditions
                  and covenants  under this Indenture  throughout such year, or,
                  if there has been a default  in its  compliance  with any such
                  condition or covenant,  specifying  each such default known to
                  such Authorized Officer and the nature and status thereof.

                            SECTION 3.10  Issuer May Consolidate, etc., Only on
           Certain Terms. (a)  The Issuer shall not consolidate or merge with or
           into any other Person, unless:

                  (i) the  Person  (if  other  than  the  Issuer)  formed  by or
                  surviving  such  consolidation  or  merger  shall  be a Person
                  organized and existing  under the laws of the United States of
                  America  or  any  State  and  shall  expressly  assume,  by an
                  indenture  supplemental hereto,  executed and delivered to the
                  Indenture  Trustee,  in  form  satisfactory  to the  Indenture
                  Trustee,  the due and punctual payment of the principal of and
                  interest on all Notes and the  performance  or  observance  of
                  every  agreement and covenant of this Indenture on the part of
                  the  Issuer  to be  performed  or  observed,  all as  provided
                  herein;

                  (ii) immediately after giving effect to such  transaction,  no
                  Default  or  Event  of  Default  shall  have  occurred  and be
                  continuing;

                  (iii)  the Rating Agency Condition shall have been satisfied
                  with respect to such transaction;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
                  shall have delivered copies thereof to the Indenture  Trustee)
                  to the effect that such transaction will not have any material
                  adverse tax  consequence to the Issuer,  any Noteholder or any
                  Certificateholder;

                  (v) any action  that is  necessary  to  maintain  the lien and
                  security  interest  created by this Indenture  shall have been
                  taken; and

                  (vi) the  Issuer  shall  have  delivered  to the  Seller,  the
                  Servicer,  the Owner  Trustee  and the  Indenture  Trustee  an
                  Officer's  Certificate  and an Opinion of Counsel each stating
                  that  such  consolidation  or  merger  and  such  supplemental
                  indenture comply with this Article III and that all conditions
                  precedent  herein  provided for  relating to such  transaction
                  have been complied with  (including any filing required by the
                  Exchange Act).

                            (b) Other than as  specifically  contemplated by the
           Basic  Documents,  the Issuer shall not convey or transfer any of its
           properties or assets, including those included in the Indenture Trust
           Estate, to any Person, unless:

                  (i) the Person that  acquires by  conveyance  or transfer  the
                  properties and assets of the Issuer the conveyance or transfer
                  of which is hereby  restricted  shall  (A) be a United  States
                  citizen or a Person  organized and existing  under the laws of
                  the  United  States of America  or any  State,  (B)  expressly
                  assumes,  by an indenture  supplemental  hereto,  executed and
                  delivered to the Indenture  Trustee,  in form  satisfactory to
                  the  Indenture  Trustee,  the due and punctual  payment of the
                  principal of and interest on all Notes and the  performance or
                  observance of every  agreement and covenant of this  Indenture
                  on the part of the Issuer to be performed or observed,  all as
                  provided  herein,  (C)  expressly  agrees  by  means  of  such
                  supplemental  indenture that all right,  title and interest so
                  conveyed or  transferred  shall be subject and  subordinate to
                  the rights of Noteholders,  (D) unless  otherwise  provided in
                  such  supplemental  indenture,  expressly agrees to indemnify,
                  defend and hold harmless the Issuer against and from any loss,
                  liability  or  expense   arising  under  or  related  to  this
                  Indenture and the Notes,  and (E) expressly agrees by means of
                  such supplemental indenture that such Person (or if a group of
                  Persons,  then one  specified  Person)  shall make all filings
                  with  the  Commission  (and  any  other  appropriate   Person)
                  required by the Exchange Act in connection with the Notes;

                  (ii) immediately after giving effect to such  transaction,  no
                  Default  or  Event  of  Default  shall  have  occurred  and be
                  continuing;

                  (iii)  the Rating Agency Condition shall have been satisfied
                  with respect to such transaction;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
                  shall have delivered copies thereof to the Indenture  Trustee)
                  to the effect that such transaction will not have any material
                  adverse tax  consequence to the Issuer,  any Noteholder or any
                  Certificateholder;

                  (v) any action  that is  necessary  to  maintain  the lien and
                  security  interest  created by this Indenture  shall have been
                  taken; and

                  (vi) the Issuer shall have delivered to the Indenture  Trustee
                  an  Officer's  Certificate  and an  Opinion  of  Counsel  each
                  stating that such conveyance or transfer and such supplemental
                  indenture comply with this Article III and that all conditions
                  precedent  herein  provided for  relating to such  transaction
                  have been complied with  (including any filing required by the
                  Exchange Act).

                            SECTION 3.11 Successor or  Transferee.  (a) Upon any
           consolidation  or merger of the  Issuer in  accordance  with  Section
           3.10(a),  the Person  formed by or surviving  such  consolidation  or
           merger  (if  other  than  the  Issuer)   shall  succeed  to,  and  be
           substituted  for,  and may  exercise  every  right and power of,  the
           Issuer  under this  Indenture  with the same effect as if such Person
           had been named as the Issuer herein.

                            (b) Upon a conveyance  or transfer of all the assets
           and properties of the Issuer pursuant to Section 3.10(b),  the Issuer
           shall be released from every covenant and agreement of this Indenture
           to be observed or performed on the part of the Issuer with respect to
           the Notes  immediately  upon the  delivery  of written  notice to the
           Indenture Trustee stating that the Issuer is to be so released.

                            SECTION 3.12 No Other Business. The Issuer shall not
           engage in any business other than  financing,  acquiring,  owning and
           pledging the Receivables in the manner contemplated by this Indenture
           and the Basic Documents and activities incidental thereto.

                            SECTION  3.13 No  Borrowing.  The  Issuer  shall not
           issue, incur, assume,  guarantee or otherwise become liable, directly
           or  indirectly,  for any  indebtedness  except  for the Notes and the
           Certificates.

                            SECTION  3.14  Servicer's  Obligations.  The  Issuer
           shall  cause  the  Servicer  to  comply  with the Sale and  Servicing
           Agreement, including Sections 3.9, 3.10, 3.11, 3.12, 3.13 and 4.9 and
           Article VII thereof.

                            SECTION 3.15 Guarantees,  Loans,  Advances and Other
           Liabilities.  Except as  contemplated by this Indenture and the other
           Basic  Documents,  the  Issuer  shall not make any loan or advance or
           credit to, or guarantee  (directly or  indirectly or by an instrument
           having the effect of assuring another's payment or performance on any
           obligation  or  capability  of so doing  or  otherwise),  endorse  or
           otherwise  become  contingently  liable,  directly or indirectly,  in
           connection  with the  obligations,  stocks or  dividends  of, or own,
           purchase,  repurchase or acquire (or agree contingently to do so) any
           stock,  obligations,  assets or securities  of, or any other interest
           in, or make any capital contribution to, any other Person.

                            SECTION 3.16 Capital Expenditures.  The Issuer shall
           not  make  any  expenditure  (by  long-term  or  operating  lease  or
           otherwise) for capital assets (either realty or personalty).

                            SECTION  3.17  Further  Instruments  and  Acts  Upon
           request of the  Indenture  Trustee,  the  Issuer  shall  execute  and
           deliver such further  instruments  and do such further acts as may be
           reasonably  necessary  or proper to carry  out more  effectively  the
           purpose of this Indenture.

                            SECTION 3.18 Restricted  Payments.  The Issuer shall
           not, directly or indirectly,  (i) make any distribution (by reduction
           of capital or otherwise),  whether in cash, property, securities or a
           combination  thereof,  to  the  Owner  Trustee  or  any  owner  of  a
           beneficial  interest in the Issuer or  otherwise  with respect to any
           ownership  or equity  interest  or security in or of the Issuer or to
           the Servicer or the Administrator,  (ii) redeem, purchase,  retire or
           otherwise  acquire for value any such ownership or equity interest or
           security or (iii) set aside or  otherwise  segregate  any amounts for
           any such  purpose;  provided,  however,  that the Issuer may make, or
           cause to be made,  (x) payments to the Servicer,  the  Administrator,
           the Owner Trustee,  the Indenture  Trustee,  the  Noteholders and the
           Certificateholders  as  contemplated  by, and to the extent funds are
           available for such purpose under,  this Indenture and the other Basic
           Documents  and (y)  payments  to the  Indenture  Trustee  pursuant to
           Section 2(a)(ii) of the  Administration  Agreement.  The Issuer shall
           not, directly or indirectly,  make payments to or distributions  from
           the Collection Account or the Principal  Distribution  Account except
           in accordance with this Indenture and the other Basic Documents.

                            SECTION 3.19 Notice of Events of Default. The Issuer
           shall  give the  Indenture  Trustee  and the Rating  Agencies  prompt
           written notice of each Event of Default hereunder and of each default
           on the part of any party to the Sale and  Servicing  Agreement or the
           Purchase Agreement with respect to any of the provisions thereof.

                            SECTION 3.20 Removal of  Administrator.  For so long
           as any  Notes are  Outstanding,  the  Issuer  shall  not  remove  the
           Administrator  without cause unless the Rating Agency Condition shall
           have been satisfied in connection therewith.

<PAGE>

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

                            SECTION 4.1 Satisfaction and Discharge of Indenture.
           This  Indenture  shall cease to be of further  effect with respect to
           the Notes  except as to (i) rights of  registration  of transfer  and
           exchange, (ii) substitution of mutilated,  destroyed,  lost or stolen
           Notes,  (iii) rights of Noteholders to receive  payments of principal
           thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8, 3.10,
           3.12 and 3.13,  (v) the rights,  obligations  and  immunities  of the
           Indenture  Trustee  hereunder  (including the rights of the Indenture
           Trustee  under  Section  6.7 and  the  obligations  of the  Indenture
           Trustee  under Section 4.3),  and (vi) the rights of  Noteholders  as
           beneficiaries  hereof with respect to the property so deposited  with
           the  Indenture  Trustee  payable  to  all or any  of  them,  and  the
           Indenture  Trustee,  on demand of and at the  expense of the  Issuer,
           shall  execute  proper  instruments  acknowledging  satisfaction  and
           discharge of this Indenture with respect to the Notes, when:

                            (A)  either

                  (2) all Notes theretofore authenticated and delivered (other
                  than (i) Notes  that have been  destroyed,  lost or stolen and
                  that have been replaced or paid as provided in Section 2.6 and
                  (ii)  Notes  for whose  payment  money  has  theretofore  been
                  deposited  in  trust  or  segregated  and held in trust by the
                  Issuer and thereafter  repaid to the Issuer or discharged from
                  such trust, as provided in Section 3.3) have been delivered to
                  the Indenture Trustee for cancellation; or

                  (3) all  Notes  not  theretofore  delivered  to the  Indenture
                  Trustee for  cancellation  have become due and payable and the
                  Issuer has  irrevocably  deposited or caused to be irrevocably
                  deposited   with  the   Indenture   Trustee   cash  or  direct
                  obligations of or obligations  guaranteed by the United States
                  of America  (which will mature  prior to the date such amounts
                  are  payable),  in  trust  for  such  purpose,  in  an  amount
                  sufficient  without  reinvestment  to pay  and  discharge  the
                  entire indebtedness on such Notes not theretofore delivered to
                  the  Indenture  Trustee  for  cancellation  when  due  to  the
                  applicable  Final  Scheduled  Distribution  Date or Redemption
                  Date (if Notes shall have been called for redemption  pursuant
                  to Section 10.1(a)),  as the case may be, and all fees due and
                  payable to the Indenture Trustee;

                    (B) the  Issuer has paid or caused to be paid all other sums
                  payable  hereunder and under any of the other Basic  Documents
                  by the Issuer;

                    (C) the Issuer has  delivered  to the  Indenture  Trustee an
                  Officer's Certificate,  an Opinion of Counsel and (if required
                  by  the  TIA  or  the   Indenture   Trustee)  an   Independent
                  Certificate from a firm of certified public accountants,  each
                  meeting the applicable  requirements  of Section  11.1(a) and,
                  subject to Section  11.2,  each  stating  that all  conditions
                  precedent herein provided for relating to the satisfaction and
                  discharge of this Indenture have been complied with; and

                    (D) the Issuer has  delivered  to the  Indenture  Trustee an
                  Opinion of Counsel to the  effect  that the  satisfaction  and
                  discharge  of the Notes  pursuant to this Section 4.1 will not
                  cause any Noteholder to be treated as having sold or exchanged
                  any of its Notes for purposes of Section 1001 of the Code.

           Upon the satisfaction and discharge of the Indenture pursuant to this
           Section  4.1,  at the  request of the Owner  Trustee,  the  Indenture
           Trustee shall deliver to the Owner Trustee a certificate of a Trustee
           Officer  stating  that all  Noteholders  have  been  paid in full and
           stating whether,  to the best knowledge of such Trustee Officer,  any
           claims remain  against the Issuer in respect of the Indenture and the
           Notes.

                         SECTION 4.2  Satisfaction,  Discharge and Defeasance
           of Notes.

                            (a) Upon satisfaction of the conditions set forth in
           subsection  (b) below,  the  Issuer  shall be deemed to have paid and
           discharged the entire  indebtedness on all the Outstanding Notes, and
           the provisions of this Indenture,  as it relates to such Notes, shall
           no longer be in effect (and the Indenture Trustee,  at the expense of
           the Issuer, shall execute proper instruments acknowledging the same),
           except as to (i) rights of  registration  of transfer  and  exchange,
           (ii)  substitution  of  mutilated,  destroyed,  lost or stolen Notes,
           (iii) rights of Noteholders to receive payments of principal  thereof
           and interest  thereon,  (iv) Sections 3.2, 3.3, 3.4, 3.5, 3.8,  3.10,
           3.12 and 3.13,  (v) the rights,  obligations  and  immunities  of the
           Indenture  Trustee  hereunder  (including the rights of the Indenture
           Trustee  under  Section  6.7 and  the  obligations  of the  Indenture
           Trustee  under Section 4.3),  and (vi) the rights of  Noteholders  as
           beneficiaries  hereof with respect to the property so deposited  with
           the Indenture Trustee payable to all or any of them.

                            (b) The  satisfaction,  discharge and  defeasance of
           the Notes  pursuant to subsection  (a) of this Section 4.2 is subject
           to the satisfaction of all of the following conditions:

                  (i)  the  Issuer  has  deposited  or  caused  to be  deposited
                  irrevocably  (except  as  provided  in  Section  4.4) with the
                  Indenture  Trustee  as  trust  funds  in  trust,  specifically
                  pledged as security for, and dedicated  solely to, the benefit
                  of the Noteholders, which, through the payment of interest and
                  principal in respect  thereof in  accordance  with their terms
                  will provide,  not later than one day prior to the due date of
                  any payment referred to below,  money in an amount sufficient,
                  in the opinion of a nationally  recognized firm of independent
                  certified   public   accountants   expressed   in  a   written
                  certification  thereof delivered to the Indenture Trustee,  to
                  pay and discharge the entire  indebtedness  on the Outstanding
                  Notes, for principal  thereof and interest thereon to the date
                  of such deposit (in the case of Notes that have become due and
                  payable) or to the maturity of such principal and interest, as
                  the case may be;

                  (ii) such deposit will not result in a breach or violation of,
                  or constitute an event of default under,  any other  agreement
                  or instrument to which the Issuer is bound;

                  (iii) no Event of Default with respect to the Notes shall have
                  occurred and be  continuing  on the date of such deposit or on
                  the ninety-first (91st) day after such date;

                  (iv) the  Issuer has  delivered  to the  Indenture  Trustee an
                  Opinion  of  Counsel  to the  effect  that  the  satisfaction,
                  discharge and defeasance of the Notes pursuant to this Section
                  4.2 will not cause any Noteholder to be treated as having sold
                  or exchanged  any of its Notes for purposes of Section 1001 of
                  the Code; and

                  (v) the  Issuer  has  delivered  to the  Indenture  Trustee an
                  Officer's  Certificate and an Opinion of Counsel, each stating
                  that  all  conditions  precedent  relating  to the  defeasance
                  contemplated by this Section 4.2 have been complied with.

                            SECTION 4.3  Application of Trust Money.  All monies
           deposited with the Indenture Trustee pursuant to Sections 4.1 and 4.2
           shall be held in trust  and  applied  by it, in  accordance  with the
           provisions of the Notes and this  Indenture,  to the payment,  either
           directly or through any Note Paying Agent,  as the Indenture  Trustee
           may determine,  to the  Noteholders  of the particular  Notes for the
           payment or redemption of which such monies have been  deposited  with
           the Indenture Trustee,  of all sums due and to become due thereon for
           principal and interest,  but such monies need not be segregated  from
           other funds except to the extent  required  herein or in the Sale and
           Servicing Agreement or required by law.

                            SECTION 4.4  Repayment of Monies Held by Note Paying
           Agent.  In  connection  with the  satisfaction  and discharge of this
           Indenture with respect to the Notes, all monies then held by any Note
           Paying Agent other than the Indenture Trustee under the provisions of
           this Indenture  with respect to such Notes shall,  upon demand of the
           Issuer,  be paid to the  Indenture  Trustee  to be held  and  applied
           according to Section 3.3 and  thereupon  such Note Paying Agent shall
           be released from all further liability with respect to such monies.

                                    ARTICLE V

                                    REMEDIES

                            SECTION 5.1 Events of Default.  "Event of  Default,"
           wherever  used  herein,  means  the  occurrence  of  any  one  of the
           following  events  (whatever the reason for such Event of Default and
           whether  it shall be  voluntary  or  involuntary  or be  effected  by
           operation of law or pursuant to any judgment,  decree or order of any
           court or any  order,  rule or  regulation  of any  administrative  or
           governmental body):

                  (i) default in the payment of any  interest on any Note of the
                  Controlling  Note Class when the same  becomes due and payable
                  on each Distribution Date, and such default shall continue for
                  a period of five (5) days or more; or

                  (ii)  default in the payment of the principal of or any
                  installment of the principal of any Note when the same becomes
                  due and payable; or

                  (iii) default in the observance or performance of any material
                  covenant or  agreement  of the Issuer  made in this  Indenture
                  (other  than  a  covenant  or  agreement,  a  default  in  the
                  observance  or  performance  of  which  is  elsewhere  in this
                  Section 5.1 specifically dealt with), or any representation or
                  warranty  of the  Issuer  made  in  this  Indenture  or in any
                  certificate or other writing  delivered  pursuant hereto or in
                  connection  herewith  proving  to have been  incorrect  in any
                  material  respect as of the time when the same shall have been
                  made, and such default shall continue or not be cured,  or the
                  circumstance   or   condition   in   respect   of  which  such
                  misrepresentation  or warranty  was  incorrect  shall not have
                  been eliminated or otherwise cured, for a period of sixty (60)
                  days or in the case of a materially  incorrect  representation
                  and  warranty  thirty  (30) days,  after there shall have been
                  given,  by registered or certified  mail, to the Issuer by the
                  Indenture  Trustee or to the Issuer and the Indenture  Trustee
                  by the  Noteholders  of Notes  evidencing not less than 25% of
                  the Note  Balance of the  Controlling  Note  Class,  a written
                  notice specifying such default or incorrect  representation or
                  warranty and requiring it to be remedied and stating that such
                  notice is a "Notice of Default" hereunder; or

                  (iv) the  filing of a decree  or order  for  relief by a court
                  having  jurisdiction  in the premises in respect of the Issuer
                  or any  substantial  part of the Indenture  Trust Estate in an
                  involuntary  case  under  any  applicable   federal  or  State
                  bankruptcy,  insolvency  or other similar law now or hereafter
                  in effect,  or  appointing a receiver,  liquidator,  assignee,
                  custodian,  trustee,  sequestrator or similar  official of the
                  Issuer  or for any  substantial  part of the  Indenture  Trust
                  Estate,  or ordering  the  winding-up  or  liquidation  of the
                  Issuer's  affairs,  and  such  decree  or order  shall  remain
                  unstayed and in effect for a period of sixty (60)  consecutive
                  days; or

                  (v) the  commencement  by the Issuer of a voluntary case under
                  any  applicable  federal or State  bankruptcy,  insolvency  or
                  other  similar law now or hereafter in effect,  or the consent
                  by the  Issuer  to the  entry of an  order  for  relief  in an
                  involuntary  case  under any such law,  or the  consent by the
                  Issuer to the appointment or taking  possession by a receiver,
                  liquidator,  assignee,  custodian,  trustee,  sequestrator  or
                  similar  official of the Issuer or for any substantial part of
                  the Indenture Trust Estate, or the making by the Issuer of any
                  general  assignment  for  the  benefit  of  creditors,  or the
                  failure by the Issuer generally to pay its debts as such debts
                  become  due,  or the  taking of any  action  by the  Issuer in
                  furtherance of any of the foregoing.

           The Issuer shall deliver to the Indenture Trustee (with a copy to any
           Qualified  Institution  or Qualified  Trust  Institution  (if not the
           Indenture Trustee)  maintaining any Trust Accounts),  within five (5)
           days after the occurrence  thereof,  written notice in the form of an
           Officer's  Certificate  of any event  which with the giving of notice
           and the lapse of time would  become an Event of Default  under clause
           (iii)  above,  its  status  and what  action  the Issuer is taking or
           proposes to take with respect thereto.

                            SECTION 5.2 Acceleration of Maturity; Rescission and
           Annulment. (a) If an Event of Default should occur and be continuing,
           then and in every such case the Indenture  Trustee or the Noteholders
           of Notes  evidencing  not less than a majority of the Note Balance of
           the  Controlling   Note  Class  may  declare  all  the  Notes  to  be
           immediately  due and  payable,  by a notice in  writing to the Issuer
           (and to the Indenture Trustee if given by Noteholders),  and upon any
           such declaration the unpaid principal amount of such Notes,  together
           with  accrued  and  unpaid  interest  thereon  through  the  date  of
           acceleration, shall become immediately due and payable.

                            (b) At any time after a declaration of  acceleration
           of maturity has been made and before a judgment or decree for payment
           of the  amount  due has been  obtained  by the  Indenture  Trustee as
           hereinafter  provided  in this  Article V, the  Noteholders  of Notes
           evidencing  not  less  than a  majority  of the Note  Balance  of the
           Controlling  Note  Class,  by  written  notice to the  Issuer and the
           Indenture  Trustee,  may rescind and annul such  declaration  and its
           consequences if:

                  (i)  the Issuer has paid or deposited with the Indenture
                  Trustee a sum sufficient to pay:

                  (A) all payments of principal of and interest on all Notes and
                  all other  amounts  that would then be due  hereunder  or upon
                  such  Notes  if the  Event  of  Default  giving  rise  to such
                  acceleration had not occurred; and

                  (B)  all  sums  paid  or  advanced  by the  Indenture  Trustee
                  hereunder   and   the   reasonable   compensation,   expenses,
                  disbursements  and advances of the  Indenture  Trustee and its
                  agents and counsel; and

                  (ii) all Events of Default,  other than the  nonpayment of the
                  principal  of the Notes  that has  become  due  solely by such
                  acceleration, have been cured or waived as provided in Section
                  5.12.

           No such rescission shall affect any subsequent  default or impair any
           right consequent thereto.

                            SECTION 5.3 Collection of Indebtedness and Suits for
           Enforcement by Indenture  Trustee.  (a) The Issuer  covenants that if
           (i) there is an Event of Default  relating to the  nonpayment  of any
           interest on any Note when the same becomes due and payable,  and such
           Event of  Default  continues  for a period of five (5) days,  or (ii)
           there  is an Event  of  Default  relating  to the  nonpayment  in the
           payment of the  principal of or any  installment  of the principal of
           any Note when the same  becomes due and  payable,  the Issuer  shall,
           upon demand of the Indenture  Trustee,  pay to the Indenture Trustee,
           for the  benefit of the  Noteholders,  the whole  amount then due and
           payable on such Notes for principal and interest,  with interest upon
           the  overdue  principal  and,  to the extent  payment at such rate of
           interest shall be legally  enforceable,  upon overdue installments of
           interest at the applicable  Note Interest Rate borne by the Notes and
           in addition  thereto such further  amount as shall be  sufficient  to
           cover the costs and expenses of collection,  including the reasonable
           compensation,  expenses,  disbursements and advances of the Indenture
           Trustee and its agents, attorneys and counsel.

                            (b) In case the Issuer  shall fail  forthwith to pay
           such amounts upon such demand, the Indenture Trustee, in its own name
           and as trustee of an express  trust,  may institute a Proceeding  for
           the collection of the sums so due and unpaid,  and may prosecute such
           Proceeding  to  judgment  or final  decree,  and may enforce the same
           against  the Issuer or other  obligor  upon such Notes and collect in
           the manner provided by law out of the property of the Issuer or other
           obligor upon such Notes,  wherever  situated,  the monies adjudged or
           decreed to be payable.

                            (c) If an Event of Default occurs and is continuing,
           the Indenture Trustee, as more particularly  provided in Section 5.4,
           in its discretion,  may proceed to protect and enforce its rights and
           the rights of the Noteholders, by such appropriate Proceedings as the
           Indenture  Trustee  shall deem most  effective to protect and enforce
           any such rights, whether for the specific enforcement of any covenant
           or agreement in this Indenture or in aid of the exercise of any power
           granted  herein,  or to enforce any other  proper  remedy or legal or
           equitable right vested in the Indenture  Trustee by this Indenture or
           by law.

                            (d) In case there shall be pending,  relative to the
           Issuer or any other  obligor  upon the Notes or any Person  having or
           claiming  an  ownership  interest  in  the  Indenture  Trust  Estate,
           Proceedings  under  Title 11 of the United  States  Code or any other
           applicable  federal or State bankruptcy,  insolvency or other similar
           law, or in case a  receiver,  assignee  or trustee in  bankruptcy  or
           reorganization,  liquidator,  sequestrator or similar  official shall
           have been  appointed  for or taken  possession  of the  Issuer or its
           property  or such other  obligor  or Person,  or in case of any other
           comparable  judicial  Proceedings  relative  to the  Issuer  or other
           obligor upon the Notes, or to the creditors or property of the Issuer
           or such other obligor, the Indenture Trustee, irrespective of whether
           the  principal  of any Notes shall then be due and payable as therein
           expressed or by declaration or otherwise and  irrespective of whether
           the  Indenture  Trustee  shall have made any demand  pursuant  to the
           provisions of this Section 5.3, shall be entitled and  empowered,  by
           intervention in such Proceedings or otherwise:

                  (i) to file and prove a claim or claims  for the whole  amount
                  of principal  and interest  owing and unpaid in respect of the
                  Notes and to file such  other  papers or  documents  as may be
                  necessary  or  advisable  in order to have the  claims  of the
                  Indenture   Trustee   (including   any  claim  for  reasonable
                  compensation  to the  Indenture  Trustee and each  predecessor
                  Indenture Trustee, and their respective agents,  attorneys and
                  counsel, and for reimbursement of all expenses and liabilities
                  incurred,  and all advances  and  disbursements  made,  by the
                  Indenture  Trustee  and each  predecessor  Indenture  Trustee,
                  except  as a result of  negligence  or bad  faith)  and of the
                  Noteholders allowed in such Proceedings;

                  (ii) unless  prohibited by applicable law and regulations,  to
                  vote  on  behalf  of  the  Noteholders  in any  election  of a
                  trustee,  a  standby  trustee  or  Person  performing  similar
                  functions in any such Proceedings;

                  (iii) to collect  and  receive  any  monies or other  property
                  payable  or  deliverable  on any  such  claims  and to pay all
                  amounts received with respect to the claims of the Noteholders
                  and of the Indenture Trustee on their behalf; and

                  (iv)  to file  such  proofs  of  claim  and  other  papers  or
                  documents  as may be  necessary  or advisable in order to have
                  the claims of the Indenture Trustee or the Noteholders allowed
                  in  any  judicial  proceedings  relative  to the  Issuer,  its
                  creditors and its property;

           and any trustee,  receiver,  liquidator,  custodian or other  similar
           official in any such Proceeding is hereby  authorized by each of such
           Noteholders  to make  payments to the  Indenture  Trustee and, in the
           event  that the  Indenture  Trustee  shall  consent  to the making of
           payments  directly  to  such  Noteholders,  to pay  to the  Indenture
           Trustee  such  amounts  as shall be  sufficient  to cover  reasonable
           compensation to the Indenture  Trustee,  each  predecessor  Indenture
           Trustee and their respective agents,  attorneys and counsel,  and all
           other  expenses  and  liabilities  incurred,  and  all  advances  and
           disbursements  made,  by the Indenture  Trustee and each  predecessor
           Indenture Trustee, except as a result of negligence or bad faith, and
           any other amounts due the Indenture Trustee pursuant to Section 6.7.

                            (e)  Nothing  herein  contained  shall be  deemed to
           authorize  the  Indenture  Trustee to authorize or consent to or vote
           for or  accept  or  adopt on  behalf  of any  Noteholder  any plan of
           reorganization,  arrangement, adjustment or composition affecting the
           Notes or the rights of any  Noteholder  or to authorize the Indenture
           Trustee to vote in respect of the claim of any Noteholder in any such
           proceeding  except,  as  aforesaid,  to vote  for the  election  of a
           trustee in bankruptcy or similar Person.

                            (f) All  rights of action  and of  asserting  claims
           under this Indenture,  or under any of the Notes,  may be enforced by
           the Indenture  Trustee  without the possession of any of the Notes or
           the  production  thereof in any trial or other  Proceedings  relative
           thereto,  and  any  such  action  or  Proceedings  instituted  by the
           Indenture  Trustee  shall be brought in its own name as trustee of an
           express trust,  and any recovery of judgment,  subject to the payment
           of the  expenses,  disbursements  and  compensation  of the Indenture
           Trustee,  each  predecessor  Indenture  Trustee and their  respective
           agents,  attorneys and counsel,  shall be for the ratable  benefit of
           the Noteholders in respect of which such judgment has been recovered.

                            (g)  In any  Proceedings  brought  by the  Indenture
           Trustee (and also any Proceedings involving the interpretation of any
           provision of this Indenture to which the Indenture Trustee shall be a
           party),  the  Indenture  Trustee  shall be held to represent  all the
           Noteholders,  and it shall not be necessary to make any  Noteholder a
           party to any such Proceedings.

                            SECTION 5.4 Remedies; Priorities. (a) If an Event of
           Default shall have occurred and be continuing,  the Indenture Trustee
           may do one or more of the following (subject to Section 5.5):

                  (i) institute Proceedings in its own name and as trustee of an
                  express  trust for the  collection of all amounts then payable
                  on the Notes or under this  Indenture  with  respect  thereto,
                  whether by  declaration  or  otherwise,  enforce any  judgment
                  obtained,  and collect  from the Issuer and any other  obligor
                  upon such Notes monies adjudged due;

                  (ii) institute  Proceedings from time to time for the complete
                  or partial  foreclosure  of this Indenture with respect to the
                  Indenture Trust Estate;

                  (iii)  exercise any remedies of a secured  party under the UCC
                  and take any other  appropriate  action to protect and enforce
                  the rights  and  remedies  of the  Indenture  Trustee  and the
                  Noteholders; and

                  (iv) sell the Indenture Trust Estate or any portion thereof or
                  rights or interest  therein,  at one or more public or private
                  sales called and conducted in any manner permitted by law.

           provided,  however,  the Indenture  Trustee may not sell or otherwise
           liquidate the Indenture Trust Estate unless:

         (A)     the Event of Default is of the type described in
                 Section 5.1(i) or (ii); or

         (B)     with respect to any Event of Default  described in Section
                 5.1(iv) and (v):

                  (1)      the Noteholders of Notes evidencing 100% of the Note
                           Balance of the Controlling Note Class consent
                           thereto; or

                  (2)      the proceeds of such sale or liquidation are
                           sufficient to pay in full the principal of and the
                           accrued interest on the Outstanding Notes; or

                  (3)      the Indenture Trustee

                           (x)    determines  (but shall have no  obligation  to
                                  make such  determination)  that the  Indenture
                                  Trust  Estate  will not  continue  to  provide
                                  sufficient  funds for the payment of principal
                                  of and  interest  on the  Notes as they  would
                                  have  become  due if the  Notes  had not  been
                                  declared due and payable; and

                           (y)    the Indenture  Trustee  obtains the consent of
                                  Noteholders of Notes  evidencing not less than
                                  662/3% of the Note Balance of the  Controlling
                                  Note Class; or

         (C)     with respect to an Event of Default described in Section
                 5.1(iii):

                  (1)      the Noteholders of all Outstanding Notes and the
                           Certificateholders of all outstanding Certificates
                           consent thereto; or

                  (2)      the  proceeds  of  such  sale  or   liquidation   are
                           sufficient  to  pay  in  full  the  principal  of and
                           accrued   interest  on  the  Outstanding   Notes  and
                           outstanding Certificates.

           In  determining  such  sufficiency or  insufficiency  with respect to
           clauses (B)(2),  (C)(2) and (B)(3)(x)  above,  the Indenture  Trustee
           may, but need not,  obtain and rely upon an opinion of an Independent
           investment  banking or accounting  firm of national  reputation as to
           the  feasibility of such proposed action and as to the sufficiency of
           the Indenture Trust Estate for such purpose.

                            (b)  Notwithstanding  the provisions of Section 8.2,
           if the Indenture  Trustee collects any money or property  pursuant to
           this  Article  V, it  shall  pay out the  money  or  property  in the
           following order:

                  (i) first, to the Indenture Trustee for amounts due under
                  Section 6.7;

                  (ii) second, to the Servicer for due and unpaid Servicing
                  Fees;

                  (iii) third,  to  Noteholders of the Class A Notes for amounts
                  due and unpaid on the Class A Notes in  respect  of
                  interest, ratably, without preference or priority of any
                  kind, according to the  amounts  due and  payable  on
                  the  Class  A Notes  for interest;

                  (iv) fourth, to Noteholders of the Class A-1 Notes for amounts
                  due and unpaid on the Class A-1 Notes for principal,  ratably,
                  without  preference or priority of any kind,  according to the
                  amounts due and payable on the Class A-1 Notes for  principal,
                  until the principal amount of the Outstanding  Class A-1 Notes
                  is reduced to zero;

                  (v) fifth,  to  Noteholders of the Class A-2 Notes for amounts
                  due and unpaid on the Class A-2 Notes for principal,  ratably,
                  without  preference or priority of any kind,  according to the
                  amounts due and payable on the Class A-2 Notes for  principal,
                  until the principal amount of the Outstanding  Class A-2 Notes
                  is reduced to zero;

                  (vi)  sixth,  to  Noteholders  of the  Class  A-3  Notes for
                  amounts  due and unpaid on the Class A-3 Notes for  principal,
                  ratably, without preference or priority of any kind, according
                  to the  amounts  due and  payable  on the  Class A-3 Notes for
                  principal, until the principal amount of the Outstanding Class
                  A-3 Notes is reduced to zero;

                  (vii)  seventh,  to  Noteholders  of the  Class  A-4 Notes for
                  amounts  due and unpaid on the Class A-4 Notes for  principal,
                  ratably, without preference or priority of any kind, according
                  to the  amounts  due and  payable  on the  Class A-4 Notes for
                  principal, until the principal amount of the Outstanding Class
                  A-4 Notes is reduced to zero;

                  (viii) eighth,  to Noteholders of the Class A-5 Notes for
                  amounts due and  unpaid on the Class A-5  Notes  for
                  principal,  ratably,  without preference  or priority of any
                  kind,  according  to the amounts due and payable  on the
                  Class A-5 Notes  for  principal,  until the  principal
                  amount of the Outstanding Class A-5 Notes is reduced to zero;

                  (ix) ninth,  to  Noteholders of the Class B Notes for amounts
                  due and unpaid on the Class B Notes in respect of  interest,
                  ratably,  without preference  or priority of any kind,
                  according  to the amounts due and payable on the Class B Notes
                  for interest;

                  (x) tenth, to Noteholders of the Class B Notes for amounts due
                  and  unpaid  on the  Class B  Notes  for  principal,  ratably,
                  without  preference or priority of any kind,  according to the
                  amounts  due and  payable on the Class B Notes for  principal,
                  until the principal amount of the Outstanding Class B Notes is
                  reduced to zero;

                  (xi) eleventh, to the Issuer for amounts required to be
                  distributed to the Certificateholders pursuant to the Trust
                  Agreement and the Sale and Servicing Agreement; and

                  (xii) twelfth,  to the Seller, any money or property remaining
                  after  payment  in full of the  amounts  described  in clauses
                  (i)-(xi) of this Section 5.4(b).

           The Indenture  Trustee may fix a record date and payment date for any
           payment to Noteholders pursuant to this Section 5.4. At least fifteen
           (15) days  before  such record  date,  the Issuer  shall mail to each
           Noteholder and the Indenture  Trustee a notice that states the record
           date, the payment date and the amount to be paid.

                            (c)  Upon  a  sale  or  other   liquidation  of  the
           Receivables in the manner set forth in Section 5.4(a),  the Indenture
           Trustee  shall  provide  reasonable  prior  notice  of  such  sale or
           liquidation to each Noteholder and Certificateholder. A Noteholder or
           Certificateholder may submit a bid with respect to such sale.

                            SECTION   5.5   Optional    Preservation    of   the
           Receivables.  If the Notes have been  declared  to be due and payable
           under Section 5.2 following an Event of Default, and such declaration
           and its  consequences  have  not been  rescinded  and  annulled,  the
           Indenture Trustee may, but need not, elect to maintain  possession of
           the Indenture Trust Estate and apply proceeds as if there had been no
           declaration of acceleration; provided, however, that funds on deposit
           in the  Collection  Account at the time the  Indenture  Trustee makes
           such election or deposited  therein during the  Collection  Period in
           which such  election  is made  (including  funds,  if any,  deposited
           therein from the Reserve  Account and the Payahead  Account) shall be
           applied in accordance  with such  declaration of  acceleration in the
           manner  specified  in  Section  4.6(c)  of  the  Sale  and  Servicing
           Agreement. It is the desire of the parties hereto and the Noteholders
           that  there be at all  times  sufficient  funds  for the  payment  of
           principal of and  interest on the Notes,  and the  Indenture  Trustee
           shall take such desire into account when  determining  whether or not
           to maintain  possession of the Indenture Trust Estate. In determining
           whether to maintain  possession  of the Indenture  Trust Estate,  the
           Indenture  Trustee may, but need not, obtain and rely upon an opinion
           of an Independent  investment  banking or accounting firm of national
           reputation as to the  feasibility  of such proposed  action and as to
           the sufficiency of the Indenture Trust Estate for such purpose.

                            SECTION 5.6 Limitation of Suits. No Noteholder shall
           have any right to institute  any  Proceeding,  judicial or otherwise,
           with respect to this  Indenture or for the  appointment of a receiver
           or trustee, or for any other remedy hereunder, unless:

                            (a)  such Noteholder has previously given written
           notice to the Indenture Trustee of a continuing Event of Default;

                            (b) the  Noteholders  of Notes  evidencing  not less
           than 25% of the Note Balance of the Controlling  Note Class have made
           written request to the Indenture Trustee to institute such Proceeding
           in respect  of such  Event of  Default  in its own name as  Indenture
           Trustee hereunder;

                            (c) such  Noteholder or Noteholders  have offered to
           the  Indenture  Trustee  reasonable   indemnity  against  the  costs,
           expenses  and  liabilities  to be  incurred  in  complying  with such
           request;

                            (d) the Indenture  Trustee for sixty (60) days after
           its receipt of such notice, request and offer of indemnity has failed
           to institute such Proceedings; and

                            (e) no  direction  inconsistent  with  such  written
           request has been given to the Indenture Trustee during such sixty-day
           period  by the  Noteholders  of  Notes  evidencing  not  less  than a
           majority of the Note Balance of the Controlling Note Class.

                            It is  understood  and intended  that no one or more
           Noteholders shall have any right in any manner whatever by virtue of,
           or by availing of, any provision of this Indenture to affect, disturb
           or prejudice the rights of any other  Noteholders  or to obtain or to
           seek to obtain priority or preference  over any other  Noteholders or
           to  enforce  any right  under  this  Indenture,  except in the manner
           herein provided.

                            In the event the  Indenture  Trustee  shall  receive
           conflicting or  inconsistent  requests and indemnity from two or more
           groups of  Noteholders,  each  evidencing less than a majority of the
           Note Balance of the Controlling Note Class, the Indenture  Trustee in
           its sole  discretion  may  determine  what action,  if any,  shall be
           taken, notwithstanding any other provisions of this Indenture.

                            SECTION 5.7  Unconditional  Rights of Noteholders To
           Receive Principal and Interest.  Notwithstanding any other provisions
           in this  Indenture,  any  Noteholder  shall have the right,  which is
           absolute and  unconditional,  to receive  payment of the principal of
           and  interest,  if any,  on its Note on or after the  respective  due
           dates thereof expressed in such Note or in this Indenture (or, in the
           case of redemption, on or after the Redemption Date) and to institute
           suit for the  enforcement  of any such payment,  and such right shall
           not be impaired without the consent of such Noteholder.

                            SECTION 5.8  Restoration of Rights and Remedies.  If
           the Indenture Trustee or any Noteholder has instituted any Proceeding
           to  enforce  any  right  or  remedy  under  this  Indenture  and such
           Proceeding has been  discontinued  or abandoned for any reason or has
           been  determined  adversely  to  the  Indenture  Trustee  or to  such
           Noteholder,  then and in every such case the  Issuer,  the  Indenture
           Trustee and the Noteholders  shall,  subject to any  determination in
           such  Proceeding,  be restored  severally and  respectively  to their
           former positions hereunder, and thereafter all rights and remedies of
           the Indenture Trustee and the Noteholders shall continue as though no
           such Proceeding had been instituted.

                            SECTION 5.9 Rights and Remedies Cumulative. No right
           or remedy herein conferred upon or reserved to the Indenture  Trustee
           or to the  Noteholders is intended to be exclusive of any other right
           or remedy,  and every right and remedy shall, to the extent permitted
           by law, be cumulative and in addition to every other right and remedy
           given  hereunder or now or hereafter  existing at law or in equity or
           otherwise.  The  assertion  or  employment  of any  right  or  remedy
           hereunder,  or otherwise,  shall not prevent the concurrent assertion
           or employment of any other appropriate right or remedy.

                            SECTION  5.10  Delay or  Omission  Not a Waiver.  No
           delay or  omission  of the  Indenture  Trustee or any  Noteholder  to
           exercise  any right or remedy  accruing  upon any Default or Event of
           Default  shall impair any such right or remedy or constitute a waiver
           of any such Default or Event of Default or any acquiescence  therein.
           Every  right  and  remedy  given by this  Article  V or by law to the
           Indenture Trustee or to the Noteholders may be exercised from time to
           time,  and as  often as may be  deemed  expedient,  by the  Indenture
           Trustee or by the Noteholders, as the case may be.

                            SECTION  5.11 Control by  Controlling  Note Class of
           Noteholders.  The  Noteholders  of Notes  evidencing  not less than a
           majority of the Note Balance of the Controlling Note Class shall have
           the right to direct  the time,  method  and place of  conducting  any
           Proceeding  for any remedy  available to the  Indenture  Trustee with
           respect to the Notes or  exercising  any trust or power  conferred on
           the Indenture Trustee; provided that:

                            (a)  such direction shall not be in conflict with
           any rule of law or with this Indenture;

                            (b) subject to the express terms of Section 5.4, any
           direction to the Indenture Trustee to sell or liquidate the Indenture
           Trust Estate shall be by  Noteholders  of Notes  evidencing  not less
           than 100% of the Note Balance of the Controlling Note Class;

                            (c) if the  conditions set forth in Section 5.5 have
           been  satisfied  and the  Indenture  Trustee  elects  to  retain  the
           Indenture  Trust  Estate  pursuant  to such  Section  5.5,  then  any
           direction to the Indenture Trustee by Noteholders of Notes evidencing
           less than 100% of the Note Balance of the  Controlling  Note Class to
           sell or liquidate the Indenture Trust Estate shall be of no force and
           effect; and

                            (d) the Indenture  Trustee may take any other action
           deemed proper by the Indenture  Trustee that is not inconsistent with
           such direction.

           Notwithstanding  the rights of Noteholders  set forth in this Section
           5.11, subject to Section 6.1, the Indenture Trustee need not take any
           action that it  determines  might involve it in costs or expenses for
           which it would not be adequately indemnified or expose it to personal
           liability or might  materially  adversely  affect or unduly prejudice
           the rights of any Noteholders not consenting to such action.

                            SECTION 5.12 Waiver of Past  Defaults.  Prior to the
           declaration  of the  acceleration  of the  maturity  of the  Notes as
           provided in Section 5.2, the Noteholders of Notes evidencing not less
           than a majority of the Note Balance of the Controlling Note Class may
           waive  any past  Default  or Event of  Default  and its  consequences
           except a Default  (a) in the payment of  principal  of or interest on
           any of the Notes or (b) in respect of a covenant or provision  hereof
           that cannot be amended,  supplemented or modified without the consent
           of each Noteholder.  In the case of any such waiver,  the Issuer, the
           Indenture  Trustee  and the  Noteholders  shall be  restored to their
           former  positions  and rights  hereunder,  respectively;  but no such
           waiver shall extend to any  subsequent or other Default or impair any
           right consequent thereto.

                            Upon any such waiver,  such  Default  shall cease to
           exist and be deemed to have been cured and not to have occurred,  and
           any Event of Default  arising  therefrom shall be deemed to have been
           cured and not to have occurred,  for every purpose of this Indenture;
           but no such waiver shall extend to any subsequent or other Default or
           Event of Default or impair any right consequent thereto.

                            SECTION 5.13  Undertaking for Costs.  All parties to
           this  Indenture  agree,  and  each  Noteholder  by such  Noteholder's
           acceptance thereof shall be deemed to have agreed, that any court may
           in its  discretion  require,  in any suit for the  enforcement of any
           right or remedy  under this  Indenture,  or in any suit  against  the
           Indenture Trustee for any action taken,  suffered or omitted by it as
           Indenture  Trustee,  the filing by any party litigant in such suit of
           an undertaking to pay the costs of such suit, and that such court may
           in its  discretion  assess  reasonable  costs,  including  reasonable
           attorneys' fees,  against any party litigant in such suit, having due
           regard to the merits and good faith of the claims or defenses made by
           such party  litigant;  but the  provisions of this Section 5.13 shall
           not apply to (a) any suit  instituted by the Indenture  Trustee,  (b)
           any suit  instituted by any  Noteholder or group of  Noteholders,  in
           each case  holding in the  aggregate  more than 10% of the  principal
           amount of the Notes  Outstanding (or in the case of a right or remedy
           under this  Indenture  which is  instituted by the  Controlling  Note
           Class,  more than 10% of the Controlling  Note Class) or (c) any suit
           instituted by any  Noteholder  for the  enforcement of the payment of
           principal of or interest on any Note on or after the  respective  due
           dates  expressed in such Note and in this  Indenture (or, in the case
           of redemption, on or after the Redemption Date).

                            SECTION  5.14 Waiver of Stay or  Extension  Laws The
           Issuer  covenants  (to the extent that it may lawfully do so) that it
           shall  not at  any  time  insist  upon,  or  plead  or in any  manner
           whatsoever,  claim or take the benefit or  advantage  of, any stay or
           extension  law  wherever  enacted,  now or at any time  hereafter  in
           force,  that may  affect the  covenants  or the  performance  of this
           Indenture,  and the Issuer (to the extent that it may lawfully do so)
           hereby expressly waives all benefit or advantage of any such law, and
           covenants that it shall not hinder,  delay or impede the execution of
           any power herein  granted to the Indenture  Trustee,  but will suffer
           and  permit the  execution  of every such power as though no such law
           had been enacted.

                            SECTION   5.15  Action  on  Notes.   The   Indenture
           Trustee's  right to seek and  recover  judgment on the Notes or under
           this  Indenture  shall not be affected by the  seeking,  obtaining or
           application  of any  other  relief  under  or  with  respect  to this
           Indenture.  Neither  the lien of this  Indenture  nor any  rights  or
           remedies  of the  Indenture  Trustee  or  the  Noteholders  shall  be
           impaired by the  recovery of any  judgment by the  Indenture  Trustee
           against  the  Issuer  or by the  levy  of any  execution  under  such
           judgment upon any portion of the  Indenture  Trust Estate or upon any
           of the assets of the Issuer.  Any money or property  collected by the
           Indenture Trustee shall be applied in accordance with Section 5.4(b).

                            SECTION 5.16  Performance and Enforcement of Certain
           Obligations.  (a)  Promptly  following a request  from the  Indenture
           Trustee  to do so,  and at the  Administrator's  expense,  the Issuer
           shall  take all such  lawful  action  as the  Indenture  Trustee  may
           request to compel or secure the  performance  and  observance  by the
           Seller and the Servicer, as applicable,  of each of their obligations
           to the  Issuer  under or in  connection  with the Sale and  Servicing
           Agreement,  or by the Seller and Ford Credit, as applicable,  of each
           of  their  obligations  under  or in  connection  with  the  Purchase
           Agreement, and to exercise any and all rights,  remedies,  powers and
           privileges  lawfully  available to the Issuer under or in  connection
           with the Sale and Servicing Agreement and the Purchase Agreement,  as
           the case may be, to the  extent  and in the  manner  directed  by the
           Indenture  Trustee,  including the transmission of notices of default
           on the part of the Seller, the Servicer or Ford Credit thereunder and
           the institution of legal or administrative  actions or proceedings to
           compel or secure performance by the Seller or the Servicer of each of
           their  obligations  under the Sale and Servicing  Agreement or by the
           Seller or Ford Credit of each of their obligations under the Purchase
           Agreement.

                            (b) If an  Event  of  Default  has  occurred  and is
           continuing,  the Indenture  Trustee may, and at the direction  (which
           direction  shall be in writing or by telephone,  confirmed in writing
           promptly  thereafter) of the Noteholders of Notes evidencing not less
           than 662/3% of the Note Balance of the Controlling  Note Class shall,
           exercise all rights, remedies,  powers,  privileges and claims of the
           Issuer against the Seller or the Servicer under or in connection with
           the Sale and  Servicing  Agreement,  or  against  the  Seller or Ford
           Credit under or in connection with the Purchase Agreement,  including
           the right or power to take any action to compel or secure performance
           or observance by the Seller, the Servicer or Ford Credit, as the case
           may be, of each of their  obligations to the Issuer thereunder and to
           give any consent, request, notice, direction, approval, extension, or
           waiver  under  the  Sale  and  Servicing  Agreement  or the  Purchase
           Agreement,  as the case may be,  and any right of the  Issuer to take
           such action shall be suspended.

<PAGE>

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

                            SECTION  6.1 Duties of  Indenture  Trustee (a) If an
           Event of  Default  has  occurred  and is  continuing,  the  Indenture
           Trustee  shall  exercise  the rights and powers  vested in it by this
           Indenture and use the same degree of care and skill in their exercise
           as a prudent Person would exercise or use under the  circumstances in
           the conduct of such Person's own affairs.

                            (b)  Except during the continuance of an Event of
           Default:

                  (i) the  Indenture  Trustee  undertakes to perform such duties
                  and only  such  duties as are  specifically  set forth in this
                  Indenture  and no implied  covenants or  obligations  shall be
                  read into this Indenture against the Indenture Trustee; and

                  (ii) in the  absence of bad faith on its part,  the  Indenture
                  Trustee  may  conclusively  rely,  as  to  the  truth  of  the
                  statements  and  the  correctness  of the  opinions  expressed
                  therein,  upon  certificates  or  opinions  furnished  to  the
                  Indenture  Trustee  and,  if  required  by the  terms  of this
                  Indenture,  conforming to the  requirements of this Indenture;
                  provided,  however,  that the Indenture  Trustee shall examine
                  the certificates and opinions to determine whether or not they
                  conform to the requirements of this Indenture.

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

                  (i)  this paragraph does not limit the effect of paragraph
                  (b) of this Section 6.1;

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

                  (iii) the  Indenture  Trustee shall not be liable with respect
                  to any  action  it takes  or  omits  to take in good  faith in
                  accordance with a direction received by it pursuant to Section
                  5.11.

                            (d) The  Indenture  Trustee  shall not be liable for
           interest on any money received by it except as the Indenture  Trustee
           may agree in writing with the Issuer.

                            (e)  Money  held in trust by the  Indenture  Trustee
           need not be segregated from other funds except to the extent required
           by law or the  terms of this  Indenture  or the  Sale  and  Servicing
           Agreement.

                            (f) No provision of this Indenture shall require the
           Indenture  Trustee to expend or risk its own funds or otherwise incur
           financial liability in the performance of any 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.

                            (g) Every  provision of this  Indenture  relating to
           the conduct or affecting the liability of or affording  protection to
           the  Indenture  Trustee  shall be subject to the  provisions  of this
           Section 6.1 and to the provisions of the TIA.

                            (h) The Indenture  Trustee shall not be charged with
           knowledge of any Event of Default unless either (1) a Trustee Officer
           shall have actual  knowledge  of such Event of Default or (2) written
           notice  of such  Event  of  Default  shall  have  been  given  to the
           Indenture   Trustee  in  accordance   with  the  provisions  of  this
           Indenture.

                            SECTION  6.2  Rights of  Indenture  Trustee  (a) The
           Indenture  Trustee  may rely and  shall be  protected  in  acting  or
           refraining from acting upon any resolution,  certificate,  statement,
           instrument,  opinion,  report, notice, request,  direction,  consent,
           order,  bond,  debenture or other paper or document believed by it to
           be genuine and to have been signed or presented by the proper Person.
           The Indenture Trustee need not investigate any fact or matters stated
           in any such document.

                            (b) Before the  Indenture  Trustee  acts or refrains
           from acting, it may require an Officer's Certificate or an Opinion of
           Counsel.  The Indenture Trustee shall not be liable for any action it
           takes or omits to take in good  faith  in  reliance  on an  Officer's
           Certificate or Opinion of Counsel.

                            (c) The  Indenture  Trustee  may  execute any of the
           trusts or powers  hereunder  or perform any duties  hereunder  either
           directly  or by or through  agents or  attorneys  or a  custodian  or
           nominee,  and the Indenture  Trustee shall not be responsible for any
           misconduct or negligence on the part of, or for the  supervision  of,
           any such agent,  attorney,  custodian or nominee  appointed  with due
           care by it hereunder.

                            (d) The  Indenture  Trustee  shall not be liable for
           any action it takes or omits to take in good faith  which it believes
           to be authorized or within its rights or powers;  provided,  however,
           that such  action  or  omission  by the  Indenture  Trustee  does not
           constitute willful misconduct, negligence or bad faith.

                            (e) The Indenture  Trustee may consult with counsel,
           and the advice or opinion of counsel  with  respect to legal  matters
           relating to this  Indenture  and the Notes shall be full and complete
           authorization  and protection from liability in respect to any action
           taken,  omitted  or  suffered  by it  hereunder  in good faith and in
           accordance with the advice or opinion of such counsel.

                            (f)  The   Indenture   Trustee  shall  be  under  no
           obligation  to exercise  any of the rights or powers  vested in it by
           this  Indenture  or to honor the request or  direction  of any of the
           Noteholders  pursuant to this Indenture unless such Noteholders shall
           have  offered  to  the  Indenture  Trustee  reasonable   security  or
           indemnity  against the  reasonable  costs,  expenses,  disbursements,
           advances  and  liabilities  which might be incurred by it, its agents
           and its counsel in compliance with such request or direction.

                            (g) Any request or direction of the Issuer mentioned
           herein shall be sufficiently evidenced by an Issuer Request.

                            SECTION 6.3 Individual Rights of Indenture  Trustee.
           The Indenture Trustee,  in its individual or any other capacity,  may
           become the owner or pledgee of Notes and may otherwise  deal with the
           Issuer or its  Affiliates  with the same  rights it would  have if it
           were not Indenture  Trustee.  Any Note Paying Agent,  Note Registrar,
           co-registrar  or co-paying  agent hereunder may do the same with like
           rights.

                            SECTION  6.4  Indenture  Trustee's  Disclaimer.  The
           Indenture  Trustee  (i) shall not be  responsible  for,  and makes no
           representation  as to, the validity or adequacy of this  Indenture or
           the Notes and (ii) shall not be  accountable  for the Issuer's use of
           the proceeds from the Notes,  or responsible for any statement of the
           Issuer in this Indenture or in any document issued in connection with
           the sale of the Notes or in the Notes (all of which shall be taken as
           statements  of  the  Issuer)  other  than  the  Indenture   Trustee's
           certificate of authentication.

                            SECTION 6.5 Notice of Defaults.  If a Default occurs
           and is  continuing  and if it is known to a  Trustee  Officer  of the
           Indenture   Trustee,   the  Indenture  Trustee  shall  mail  to  each
           Noteholder  notice of such Default  within  ninety (90) days after it
           occurs. Except in the case of a Default in payment of principal of or
           interest on any Note  (including  payments  pursuant to the mandatory
           redemption  provisions  of such  Note),  the  Indenture  Trustee  may
           withhold  the  notice if and so long as a  committee  of its  Trustee
           Officers in good faith  determines that  withholding the notice is in
           the interests of the Noteholders.

                            SECTION   6.6  Reports  by   Indenture   Trustee  to
           Noteholders.  Upon delivery to the Indenture  Trustee by the Servicer
           of such information  prepared by the Servicer pursuant to Section 3.9
           of the Sale and Servicing Agreement as may be required to enable each
           Noteholder  to prepare its federal and State income tax returns,  the
           Indenture Trustee shall deliver such information to the Noteholders.

                            SECTION  6.7  Compensation  and  Indemnity.  (a) The
           Issuer  shall,  or  shall  cause  the  Administrator  to,  pay to the
           Indenture  Trustee from time to time reasonable  compensation for its
           services.  The Indenture Trustee's  compensation shall not be limited
           by any law on  compensation  of a trustee  of an express  trust.  The
           Issuer  shall,  or shall cause the  Administrator  to,  reimburse the
           Indenture Trustee for all reasonable  out-of-pocket expenses incurred
           or made by it,  including  costs of  collection,  in  addition to the
           compensation  for its  services.  Such  expenses  shall  include  the
           reasonable  compensation and expenses,  disbursements and advances of
           the Indenture Trustee's agents, counsel, accountants and experts. The
           Issuer  shall,  or shall cause the  Administrator  to,  indemnify the
           Indenture Trustee for, and to hold it harmless  against,  any and all
           loss, liability or expense (including attorneys' fees) incurred by it
           in  connection  with  the   administration  of  this  trust  and  the
           performance of its duties hereunder, including the costs and expenses
           of defending itself against any claim or liability in connection with
           the exercise or performance of any of its powers or duties hereunder.
           The Indenture  Trustee shall notify the Issuer and the  Administrator
           promptly of any claim for which it may seek indemnity. Failure by the
           Indenture Trustee to so notify the Issuer and the Administrator shall
           not  relieve  the  Issuer  or the  Administrator  of its  obligations
           hereunder.  The Issuer shall,  or shall cause the  Administrator  to,
           defend any such claim,  and the  Indenture  Trustee may have separate
           counsel and the Issuer shall,  or shall cause the  Administrator  to,
           pay the fees and expenses of such counsel. Neither the Issuer nor the
           Administrator  need  reimburse  any expense or indemnity  against any
           loss,  liability or expense incurred by the Indenture Trustee through
           the  Indenture  Trustee's own willful  misconduct,  negligence or bad
           faith.

                            (b)  The  Issuer's   payment   obligations   to  the
           Indenture  Trustee  pursuant to this  Section  6.7 shall  survive the
           resignation or removal of the Indenture  Trustee and the discharge of
           this Indenture.  When the Indenture Trustee incurs expenses after the
           occurrence  of a Default  specified  in  Section  5.1(iv) or (v) with
           respect to the  Issuer,  the  expenses  are  intended  to  constitute
           expenses of  administration  under Title 11 of the United States Code
           or any other applicable  federal or State  bankruptcy,  insolvency or
           similar law.

                            SECTION 6.8 Replacement of Indenture Trustee. (a) No
           resignation or removal of the Indenture  Trustee,  and no appointment
           of a successor  Indenture  Trustee,  shall become effective until the
           acceptance of appointment by the successor Indenture Trustee pursuant
           to this  Section  6.8 and  payment  in  full of all  sums  due to the
           Indenture  Trustee pursuant to Section 6.7. The Indenture Trustee may
           resign at any time by so notifying  the Issuer.  The  Noteholders  of
           Notes  evidencing  not less than a  majority  in Note  Balance of the
           Controlling Note Class may remove the Indenture Trustee without cause
           by so notifying the Indenture  Trustee and the Issuer and may appoint
           a successor Indenture Trustee.  The Issuer shall remove the Indenture
           Trustee if:

                  (i)  the Indenture Trustee fails to comply with Section 6.11;

                  (ii) an Insolvency Event occurs with respect to the Indenture
                  Trustee;

                  (iii)  a receiver or other public officer takes charge of the
                  Indenture Trustee or its property; or

                  (iv)  the Indenture Trustee otherwise becomes incapable of
                  acting.

           If the Indenture Trustee resigns or is removed or if a vacancy exists
           in the office of  Indenture  Trustee  for any reason  (the  Indenture
           Trustee  in such  event  being  referred  to herein  as the  retiring
           Indenture  Trustee),  the Issuer shall  promptly  appoint a successor
           Indenture Trustee.

                            (b) Any successor  Indenture Trustee shall deliver a
           written  acceptance  of its  appointment  to the  retiring  Indenture
           Trustee and to the Issuer.  Thereupon,  if all sums due the  retiring
           Indenture Trustee pursuant to Section 6.7 have been paid in full, the
           resignation or removal of the retiring Indenture Trustee shall become
           effective,  and the  successor  Indenture  Trustee shall have all the
           rights,  powers  and  duties  of the  Indenture  Trustee  under  this
           Indenture. The successor Indenture Trustee shall mail a notice of its
           succession  to  Noteholders.  If all sums due the retiring  Indenture
           Trustee  pursuant to Section 6.7 have been paid in full, the retiring
           Indenture  Trustee shall promptly transfer all property held by it as
           Indenture Trustee to the successor Indenture Trustee.

                            (c) If a successor  Indenture  Trustee does not take
           office  within sixty (60) days after the retiring  Indenture  Trustee
           resigns or is removed,  the retiring Indenture Trustee, the Issuer or
           the Noteholders of Notes  evidencing not less than a majority in Note
           Balance  of the  Controlling  Note  Class may  petition  any court of
           competent  jurisdiction for the appointment of a successor  Indenture
           Trustee.  If the Indenture Trustee fails to comply with Section 6.11,
           any Noteholder  who has been a bona fide  Noteholder for at least six
           (6) months may petition any court of competent  jurisdiction  for the
           removal of the Indenture  Trustee and the  appointment of a successor
           Indenture Trustee.

                            (d) Notwithstanding the replacement of the Indenture
           Trustee  pursuant to this Section 6.8, the  obligations of the Issuer
           and the  Administrator  under  Section  6.7  shall  continue  for the
           benefit of the retiring Indenture Trustee.

                            SECTION 6.9 Successor  Indenture  Trustee by Merger.
           (a) If the Indenture  Trustee  consolidates  with, merges or converts
           into,  or transfers  all or  substantially  all its  corporate  trust
           business or assets to, another  corporation  or banking  association,
           the  resulting,   surviving  or  transferee  corporation  or  banking
           association  without any further act shall be the successor Indenture
           Trustee;  provided that such corporation or banking association shall
           be otherwise qualified and eligible under Section 6.11. The Indenture
           Trustee shall provide the Rating  Agencies with prior written  notice
           of any such transaction.

                            (b) In case at the time such successor or successors
           by merger, conversion or consolidation to the Indenture Trustee shall
           succeed to the  trusts  created  by this  Indenture  any of the Notes
           shall have been  authenticated but not delivered,  any such successor
           to the Indenture  Trustee may adopt the certificate of authentication
           of any predecessor  trustee, and deliver such Notes so authenticated;
           and in case  at that  time  any of the  Notes  shall  not  have  been
           authenticated,   any   successor   to  the   Indenture   Trustee  may
           authenticate  such  Notes  either  in the  name  of  any  predecessor
           hereunder or in the name of the successor to the  Indenture  Trustee.
           In all such cases such  certificates  shall have the full force which
           it is provided  anywhere in the Notes or in this  Indenture  that the
           certificate of the Indenture Trustee shall have.

                            SECTION 6.10 Appointment of Co-Indenture  Trustee or
           Separate Indenture Trustee.  (a) Notwithstanding any other provisions
           of this Indenture,  at any time, for the purpose of meeting any legal
           requirement  of any  jurisdiction  in which any part of the Indenture
           Trust Estate may at the time be located,  the Indenture Trustee shall
           have the power and may execute and deliver an  instrument  to appoint
           one or  more  Persons  to  act as a  co-trustee  or  co-trustees,  or
           separate  trustee  or  separate  trustees,  of all or any part of the
           Trust,  and to vest in such Person or Persons,  in such  capacity and
           for the benefit of the Noteholders, such title to the Indenture Trust
           Estate,  or any part hereof,  and, subject to the other provisions of
           this Section  6.10,  such  powers,  duties,  obligations,  rights and
           trusts as the Indenture Trustee may consider  necessary or desirable.
           No co-trustee or separate trustee hereunder shall be required to meet
           the terms of  eligibility  as a successor  trustee under Section 6.11
           and no notice to Noteholders of the  appointment of any co-trustee or
           separate trustee shall be required under Section 6.8.

                            (b) Every 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  Indenture  Trustee  shall be  conferred  or
                  imposed  upon and  exercised  or  performed  by the  Indenture
                  Trustee and such separate  trustee or  co-trustee  jointly (it
                  being  understood  that such  separate  trustee or  co-trustee
                  shall  not  be  authorized  to  act  separately   without  the
                  Indenture  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 Indenture 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 Indenture  Trust Estate
                  or any  portion  thereof  in any such  jurisdiction)  shall be
                  exercised  and performed  singly by such  separate  trustee or
                  co-trustee,  but  solely  at the  direction  of the  Indenture
                  Trustee;

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

                  (iii)  the  Indenture  Trustee  may at  any  time  accept  the
                  resignation of or remove any separate trustee or co-trustee.

                            (c) Any notice,  request or other  writing  given to
           the  Indenture  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  Indenture  and  the
           conditions of this Article VI. 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 Indenture  Trustee or  separately,  as may be
           provided  therein,  subject to all the provisions of this  Indenture,
           specifically  including every provision of this Indenture relating to
           the conduct of,  affecting the liability of, or affording  protection
           to, the Indenture Trustee.  Every such instrument shall be filed with
           the Indenture Trustee.

                            (d) Any separate  trustee or  co-trustee  may at any
           time constitute the Indenture  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, rights, remedies and trusts shall vest in and be
           exercised by the Indenture  Trustee,  to the extent permitted by law,
           without the appointment of a new or successor trustee.

                            SECTION 6.11 Eligibility;  Disqualification. (a) The
           Indenture  Trustee shall at all times satisfy the requirements of TIA
           Section  310(a).  The  Indenture  Trustee or its parent  shall have a
           combined capital and surplus of at least  $50,000,000 as set forth in
           its most recent published annual report of condition and shall have a
           long-term  debt  rating  of  investment  grade by each of the  Rating
           Agencies  or shall  otherwise  be  acceptable  to each of the  Rating
           Agencies. The Indenture Trustee shall comply with TIA Section 310(b).

                            (b) Within ninety (90) days after  ascertaining  the
           occurrence  of an Event of Default which shall not have been cured or
           waived,  unless  authorized by the Commission,  the Indenture Trustee
           shall  resign  with  respect to the Class A Notes  and/or the Class B
           Notes in  accordance  with  Section  6.8 of this  Indenture,  and the
           Issuer shall appoint a successor Indenture Trustee for one or both of
           such Classes, as applicable, so that there will be separate Indenture
           Trustees  for the Class A Notes  and the Class B Notes.  In the event
           the Indenture Trustee fails to comply with the terms of the preceding
           sentence,  the  Indenture  Trustee shall comply with clauses (ii) and
           (iii) of TIA Section 310(b).

                            (c) In the case of the  appointment  hereunder  of a
           successor  Indenture  Trustee  with  respect  to any  Class  of Notes
           pursuant to this Section  6.11,  the Issuer,  the retiring  Indenture
           Trustee and the  successor  Indenture  Trustee  with  respect to such
           Class of Notes shall  execute and deliver an  indenture  supplemental
           hereto  wherein each  successor  Indenture  Trustee shall accept such
           appointment  and which (i) shall contain such  provisions as shall be
           necessary  or  desirable  to transfer and confirm to, and to vest in,
           the successor  Indenture Trustee all the rights,  powers,  trusts and
           duties of the retiring Indenture Trustee with respect to the Notes of
           the  Class to  which  the  appointment  of such  successor  Indenture
           Trustee  relates,  (ii)  if the  retiring  Indenture  Trustee  is not
           retiring  with  respect to all Classes of Notes,  shall  contain such
           provisions as shall be deemed  necessary or desirable to confirm that
           all the rights,  powers,  trusts and duties of the retiring Indenture
           Trustee  with  respect  to the  Notes of each  Class as to which  the
           retiring  Indenture  Trustee is not  retiring  shall  continue  to be
           vested in the Indenture  Trustee and (iii) shall add to or change any
           of the  provisions of this Indenture as shall be necessary to provide
           for or facilitate the  administration of the trusts hereunder by more
           than one Indenture  Trustee,  it being understood that nothing herein
           or in such  supplemental  indenture  shall  constitute such Indenture
           Trustees  co-trustees  of the same trust and that each such Indenture
           Trustee  shall be a trustee of a trust or trusts  hereunder  separate
           and  apart  from any trust or trusts  hereunder  administered  by any
           other such  Indenture  Trustee;  and upon the removal of the retiring
           Indenture  Trustee  shall  become  effective  to the extent  provided
           herein.

                            SECTION  6.12  Preferential   Collection  of  Claims
           Against Issuer.  The Indenture  Trustee shall comply with TIA Section
           311(a),  excluding  any creditor  relationship  listed in TIA Section
           311(b).  An Indenture  Trustee who has resigned or been removed shall
           be subject to TIA Section 311(a) to the extent indicated.

<PAGE>

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

                            SECTION  7.1  Issuer To  Furnish  Indenture  Trustee
           Names and Addresses of Noteholders. The Issuer shall furnish or cause
           to be furnished to the  Indenture  Trustee (a) not more than five (5)
           days after each Record  Date, a list,  in such form as the  Indenture
           Trustee may  reasonably  require,  of the names and  addresses of the
           Noteholders as of such Record Date and (b) at such other times as the
           Indenture  Trustee may request in  writing,  within  thirty (30) days
           after  receipt by the Issuer of any such  request,  a list of similar
           form and  content  as of a date not more than ten (10) days  prior to
           the time such list is furnished;  provided, however, that (i) so long
           as the Indenture Trustee is the Note Registrar, no such list shall be
           required to be  furnished  and (ii) no such list shall be required to
           be furnished with respect to Noteholders of Book-Entry Notes.

                            SECTION    7.2    Preservation    of    Information;
           Communications  to  Noteholders.  (a)  The  Indenture  Trustee  shall
           preserve,  in as  current a form as is  reasonably  practicable,  the
           names and addresses of the  Noteholders  contained in the most recent
           list  furnished to the  Indenture  Trustee as provided in Section 7.1
           and the names and addresses of Noteholders  received by the Indenture
           Trustee in its capacity as Note Registrar.  The Indenture Trustee may
           destroy any list furnished to it as provided in such Section 7.1 upon
           receipt of a new list so furnished.

                            (b)  Noteholders  may  communicate  pursuant  to TIA
           Section  312(b) with other  Noteholders  with respect to their rights
           under  this  Indenture  or  under  the  Notes.  Upon  receipt  by the
           Indenture  Trustee of any request by three or more  Noteholders or by
           one or more  Noteholders of Notes evidencing not less than 25% of the
           Note  Balance  of the  Notes  Outstanding  to  receive  a copy of the
           current  list of  Noteholders  (whether  or not made  pursuant to TIA
           Section  312(b)),  the Indenture  Trustee shall  promptly  notify the
           Administrator  thereof by  providing to the  Administrator  a copy of
           such  request  and a copy of the  list  of  Noteholders  produced  in
           response thereto.

                            (c) The Issuer,  the Indenture  Trustee and the Note
           Registrar shall have the protection of TIA Section 312(c).

                            SECTION 7.3  Reports by Issuer.  (a)  The Issuer
           shall: (i)  file with the Indenture Trustee, within fifteen (15) days
           after the Issuer is  required to file the same with the  Commission,
           copies of the annual reports and of the information, documents and
           other reports (or copies of such portions of any of the foregoing as
           the Commission may from time to time by rules and  regulations
           prescribe)  that the Issuer may be  required  to file with the
           Commission  pursuant  to Section  13 or 15(d) of the  Exchange Act;

                  (ii) file with the  Indenture  Trustee and the  Commission  in
                  accordance with the rules and regulations prescribed from time
                  to  time  by  the  Commission  such  additional   information,
                  documents and reports with respect to compliance by the Issuer
                  with the  conditions and covenants of this Indenture as may be
                  required from time to time by such rules and regulations; and

                  (iii)  supply  to the  Indenture  Trustee  (and the  Indenture
                  Trustee shall transmit by mail to all Noteholders described in
                  TIA  Section  313(c))  such  summaries  of  any   information,
                  documents  and  reports  required  to be filed  by the  Issuer
                  pursuant to clauses (i) and (ii) of this Section 7.3(a) and by
                  rules  and  regulations  prescribed  from  time to time by the
                  Commission.

                            (b)  Unless  the Issuer  otherwise  determines,  the
           fiscal year of the Issuer shall correspond to the calendar year.

                            SECTION 7.4  Reports by  Indenture  Trustee.  (a) If
           required by TIA Section 313(a), within sixty (60) days after each May
           15, beginning with May 15, 2001, the Indenture  Trustee shall mail to
           each  Noteholder  as required by TIA  Section  313(c) a brief  report
           dated as of such date that  complies  with TIA  Section  313(a).  The
           Indenture Trustee also shall comply with TIA Section 313(b).

                            (b) A copy of each report at the time of its mailing
           to  Noteholders  shall  be filed by the  Indenture  Trustee  with the
           Commission  and each stock  exchange,  if any, on which the Notes are
           listed. The Issuer shall notify the Indenture Trustee if and when the
           Notes are listed on any stock exchange.

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

                            SECTION 8.1 Collection of Money. Except as otherwise
           expressly  provided herein,  the Indenture Trustee may demand payment
           or delivery of, and shall  receive and collect,  directly and without
           intervention or assistance of any fiscal agent or other intermediary,
           all  money  and  other  property  payable  to or  receivable  by  the
           Indenture  Trustee  pursuant  to  this  Indenture  and the  Sale  and
           Servicing Agreement. The Indenture Trustee shall apply all such money
           received  by it as  provided  in  this  Indenture  and the  Sale  and
           Servicing  Agreement.  Except as otherwise expressly provided in this
           Indenture,  if any  default  occurs in the  making of any  payment or
           performance  under any  agreement or  instrument  that is part of the
           Indenture Trust Estate, the Indenture Trustee may take such action as
           may be appropriate to enforce such payment or performance,  including
           the institution and prosecution of appropriate Proceedings.  Any such
           action shall be without  prejudice to any right to claim a Default or
           Event of  Default  under  this  Indenture  and any  right to  proceed
           thereafter as provided in Article V.

                            SECTION 8.2 Trust Accounts and Payahead Account. (a)
           On or prior to the Closing Date,  the Issuer shall cause the Servicer
           to establish and maintain the Trust Accounts and the Payahead Account
           as  provided  in  Sections  4.1 and  4.7 of the  Sale  and  Servicing
           Agreement.

                            (b)  On  or  before  each  Distribution   Date,  the
           Servicer shall deposit all Available  Collections with respect to the
           Collection  Period preceding such Distribution Date in the Collection
           Account as provided in Sections 4.2, 4.3, 4.4 and 4.5 of the Sale and
           Servicing Agreement. On or before each Distribution Date, all amounts
           required to be withdrawn  from the Reserve  Account and  deposited in
           the  Collection  Account  pursuant  to  Section  4.5 of the  Sale and
           Servicing  Agreement shall be withdrawn by the Indenture Trustee from
           the Reserve Account and deposited to the Collection Account.

                            (c) On each Distribution Date, the Indenture Trustee
           (based on the  information  contained in the  Servicer's  Certificate
           delivered  on or before the related  Determination  Date  pursuant to
           Section  3.9 of the  Sale and  Servicing  Agreement)  shall  make the
           following  withdrawals from the Collection Account and make deposits,
           distributions and payments,  to the extent of funds on deposit in the
           Collection  Account with respect to the Collection  Period  preceding
           such Distribution  Date (including  funds, if any,  deposited therein
           from the Reserve Account and the Payahead Account),  in the following
           order of priority:

                  (i)  first, to the Servicer, the Servicing Fee and all unpaid
                  Servicing Fees from prior Collection Periods;

                  (ii) second,  to the Noteholders of Class A Notes, the Accrued
                  Class  A  Note  Interest;  provided  that  if  there  are  not
                  sufficient  funds  available  to pay the entire  amount of the
                  Accrued Class A Note Interest,  the amounts available shall be
                  applied to the  payment of such  interest on the Class A Notes
                  on a pro rata basis;

                  (iii) third, to the Principal Distribution Account, the First
                  Priority Principal Distribution Amount, if any;

                  (iv) fourth,  to the Noteholders of Class B Notes, the Accrued
                  Class  B  Note  Interest;  provided  that  if  there  are  not
                  sufficient  funds  available  to pay the entire  amount of the
                  Accrued Class B Note Interest,  the amounts available shall be
                  applied to the  payment of such  interest on the Class B Notes
                  on a pro rata basis;

                  (v)  fifth, to the Principal Distribution Account, the Second
                  Priority Principal Distribution Amount, if any;

                  (vi)  sixth, to the Certificate Interest Distribution Account,
                  the Accrued Class C Certificate Interest;

                  (vii)  seventh, to the Certificate Interest Distribution
                  Account, the Accrued Class D Certificate Interest;

                  (viii) eighth,  to the Reserve  Account,  the amount,  if any,
                  required to reinstate the amount in the Reserve  Account up to
                  the Specified Reserve Balance;

                  (ix)  ninth, to the Principal Distribution Account, the
                  Regular Principal Distribution Amount, if any; and

                  (x) tenth,  to the Seller,  any funds  remaining on deposit in
                  the Collection  Account with respect to the Collection  Period
                  preceding such Distribution Date.

           Notwithstanding any other provision of this Article VIII, and subject
           to  Section  5.4(b),  (A)  following  the  occurrence  and during the
           continuation  of an Event of Default  specified  in  Section  5.1(i),
           5.1(ii),  5.1(iv) or 5.1(v) which has resulted in an  acceleration of
           the Notes (or  following  the  occurrence  of any such event after an
           Event of Default  specified in Section  5.1(iii) has occurred and the
           Notes  have  been  accelerated),  the  Servicer  shall  instruct  the
           Indenture  Trustee to transfer the funds on deposit in the Collection
           Account remaining after the application of clauses (i) and (ii) above
           to the  Principal  Distribution  Account to the extent  necessary  to
           reduce  the  principal  amount of all the Class A Notes to zero,  (B)
           following the occurrence and during the  continuation  of an Event of
           Default  specified  in Section  5.1(iii),  which has  resulted  in an
           acceleration of the Notes,  the Servicer shall instruct the Indenture
           Trustee to transfer  the funds on deposit in the  Collection  Account
           remaining after the application of clauses (i), (ii),  (iii) and (iv)
           above to the Principal  Distribution  Account to the extent necessary
           to reduce the principal  amount of all the Notes to zero,  and (C) in
           the  case  of  an  event   described   in  clause  (A)  or  (B),  the
           Certificateholders will not receive any distributions of principal or
           interest until the principal  amount and accrued  interest on all the
           Notes has been paid in full.

                            (d) On each Distribution Date, the Indenture Trustee
           (based on the  information  contained in the  Servicer's  Certificate
           delivered  on or before the related  Determination  Date  pursuant to
           Section 3.9 of the Sale and Servicing  Agreement)  shall withdraw the
           funds on deposit in the Principal  Distribution  Account with respect
           to the Collection  Period preceding such  Distribution  Date and make
           distributions and payments in the following order of priority:

                  (i)  first,  to the  Noteholders  of the  Class  A-1  Notes in
                  reduction  of  principal  until  the  principal  amount of the
                  Outstanding  Class A-1  Notes has been paid in full;  provided
                  that if there are not  sufficient  funds  available to pay the
                  principal  amount of the Outstanding  Class A-1 Notes in full,
                  the  amounts  available  shall be  applied  to the  payment of
                  principal on the Class A-1 Notes on a pro rata basis;

                  (ii)  second,  to the  Noteholders  of the  Class A-2 Notes in
                  reduction  of  principal  until  the  principal  amount of the
                  Outstanding  Class A-2  Notes has been paid in full;  provided
                  that if there are not  sufficient  funds  available to pay the
                  principal  amount of the Outstanding  Class A-2 Notes in full,
                  the  amounts  available  shall be  applied  to the  payment of
                  principal on the Class A-2 Notes on a pro rata basis;

                  (iii)  third,  to the  Noteholders  of the  Class A-3 Notes in
                  reduction  of  principal  until  the  principal  amount of the
                  Outstanding  Class A-3  Notes has been paid in full;  provided
                  that if there are not  sufficient  funds  available to pay the
                  principal  amount of the Outstanding  Class A-3 Notes in full,
                  the  amounts  available  shall be  applied  to the  payment of
                  principal on the Class A-3 Notes on a pro rata basis;

                  (iv)  fourth,  to the  Noteholders  of the  Class A-4 Notes in
                  reduction  of  principal  until  the  principal  amount of the
                  Outstanding  Class A-4  Notes has been paid in full;  provided
                  that if there are not  sufficient  funds  available to pay the
                  principal  amount of the Outstanding  Class A-4 Notes in full,
                  the  amounts  available  shall be  applied  to the  payment of
                  principal on the Class A-4 Notes on a pro rata basis;

                  (v)  fifth,  to the  Noteholders  of the  Class  A-5  Notes in
                  reduction  of  principal  until  the  principal  amount of the
                  Outstanding  Class A-5  Notes has been paid in full;  provided
                  that if there are not  sufficient  funds  available to pay the
                  principal  amount of the Outstanding  Class A-5 Notes in full,
                  the  amounts  available  shall be  applied  to the  payment of
                  principal on the Class A-5 Notes on a pro rata basis;

                  (vi)  sixth,  to the  Noteholders  of the  Class  B  Notes  in
                  reduction  of  principal  until  the  principal  amount of the
                  Outstanding Class B Notes has been paid in full; provided that
                  if  there  are  not  sufficient  funds  available  to pay  the
                  principal amount of the Outstanding Class B Notes in full, the
                  amounts available shall be applied to the payment of principal
                  on the Class B Notes on a pro rata basis;

                  (vii)  seventh,  to  the  Certificate  Principal  Distribution
                  Account,  in reduction of the Certificate Balance of the Class
                  C Certificates,  until the Certificate  Balance of the Class C
                  Certificates has been reduced to zero;

                  (viii)  eighth,  to  the  Certificate  Principal  Distribution
                  Account,  in reduction of the Certificate Balance of the Class
                  D Certificates,  until the Certificate  Balance of the Class D
                  Certificates has been reduced to zero; and

                  (ix) ninth, to the Seller, any funds remaining on deposit in
                  the Principal Distribution Account.

                            SECTION 8.3 General Provisions  Regarding  Accounts.
           (a) So long as no Default or Event of Default shall have occurred and
           be  continuing,  all or a  portion  of the  funds  in the  Collection
           Account and the Payahead  Account  shall be invested by the Qualified
           Institution or Qualified Trust  Institution  maintaining such account
           (which  initially is the  Indenture  Trustee) at the direction of the
           Servicer in Permitted  Investments  as provided in Section 4.1 of the
           Sale and Servicing Agreement. All income or other gain (net of losses
           and investment  expenses) from investments of monies deposited in the
           Collection  Account,  the  Payahead  Account and the Reserve  Account
           shall be withdrawn by the  Indenture  Trustee from such accounts (but
           only under the  circumstances set forth in Sections 4.5(b) and 4.7(c)
           in the  Sale  and  Servicing  Agreement  in the  case of the  Reserve
           Account) and  distributed  as provided in Sections 4.1 and 4.7 of the
           Sale and  Servicing  Agreement.  The  Servicer  shall not  direct the
           Qualified Institution or Qualified Trust Institution  maintaining the
           Collection  Account or Payahead Account to make any investment of any
           funds or to sell any  investment  held in any of the  Trust  Accounts
           unless the security  interest  Granted and  perfected in such account
           will  continue to be perfected in such  investment or the proceeds of
           such sale,  in either case without any further  action by any Person,
           and, in  connection  with any  direction  by the Servicer to make any
           such  investment  or sale, if requested by the  applicable  Qualified
           Institution or Qualified Trust Institution,  the Issuer shall deliver
           to such  Qualified  Institution  or Qualified  Trust  Institution  an
           Opinion of  Counsel,  acceptable  to such  Qualified  Institution  or
           Qualified Trust Institution, to such effect.

                            (b) Subject to Section 6.1(c), the Indenture Trustee
           shall not in any way be held liable by reason of any insufficiency in
           any of the Trust Accounts or in the Payahead  Account  resulting from
           any loss on any Permitted  Investment  included  therein,  except for
           losses  attributable  to the  Indenture  Trustee's  failure  to  make
           payments  on  such  Permitted  Investments  issued  by the  Indenture
           Trustee,  in its commercial  capacity as principal obligor and not as
           trustee,  in accordance with their terms. In addition,  the Indenture
           Trustee shall have no duty to monitor the activities of any Qualified
           Institution  or Qualified  Trust  Institution  (unless such Qualified
           Institution  or Qualified  Trust  Institution  is also the  Indenture
           Trustee)  and shall not in any way be held  liable for the actions or
           inactions of any Qualified Institution or Qualified Trust Institution
           (unless such Qualified  Institution or Qualified Trust Institution is
           also the Indenture Trustee).

                            (c)  If  the  Indenture  Trustee  is  the  Qualified
           Institution or Qualified Trust Institution maintaining the Collection
           Account  or the  Payahead  Account  and (i) the  Servicer  shall have
           failed to give investment  directions for any funds on deposit in the
           Collection  Account or the Payahead Account to the Indenture  Trustee
           by 11:00  a.m.  New York Time (or such other time as may be agreed by
           the Issuer and the  Indenture  Trustee) on the Business Day preceding
           each  Distribution  Date, (ii) to the knowledge of a Trust Officer of
           the  Indenture  Trustee,  a Default  or Event of  Default  shall have
           occurred  and be  continuing  with respect to the Notes but the Notes
           shall not have been declared due and payable  pursuant to Section 5.2
           or (iii) the Notes shall have been declared due and payable following
           an  Event  of  Default  amounts  collected  or  receivable  from  the
           Indenture  Trust Estate are being applied in accordance  with Section
           5.4 as if there  had not been such a  declaration,  then in each case
           the  Indenture  Trustee  shall,  to the fullest  extent  practicable,
           invest and reinvest funds in the Collection  Account and the Payahead
           Account,  as the case may be,  in one or more  Permitted  Investments
           described in clause (b) of the definition thereof.

                            SECTION 8.4 Release of Indenture  Trust Estate.  (a)
           Subject to the payment of its fees and  expenses  pursuant to Section
           6.7, the Indenture  Trustee may, and when required by the  provisions
           of this Indenture shall, execute instruments to release property from
           the  lien  of this  Indenture,  or  convey  the  Indenture  Trustee's
           interest in the same,  in a manner and under  circumstances  that are
           not  inconsistent  with the  provisions of this  Indenture.  No party
           relying  upon an  instrument  executed  by the  Indenture  Trustee as
           provided  in this  Article  VIII  shall  be bound  to  ascertain  the
           Indenture Trustee's  authority,  inquire into the satisfaction of any
           conditions precedent or see to the application of any monies.

                            (b) The  Indenture  Trustee  shall,  at such time as
           there are no Notes Outstanding and all sums due the Indenture Trustee
           pursuant to Section 6.7 have been paid in full, release any remaining
           portion of the Indenture Trust Estate that secured the Notes from the
           lien of this  Indenture and release to the Issuer or any other Person
           entitled thereto any funds then on deposit in the Trust Accounts. The
           Indenture  Trustee  shall  release  property  from  the  lien of this
           Indenture  pursuant to this  Section  8.4(b) only upon  receipt of an
           Issuer Request accompanied by an Officer's Certificate, an Opinion of
           Counsel and (if  required  by the TIA)  Independent  Certificates  in
           accordance  with  TIA  Sections  314(c)  and  314(d)(1)  meeting  the
           applicable requirements of Section 11.1.

                            (c) Each Noteholder or Note Owner, by its acceptance
           of a Note or, in the case of a Note Owner, a beneficial interest in a
           Note, acknowledges that from time to time the Indenture Trustee shall
           release the lien of this  Indenture on any  Receivable  to be sold to
           (i) the  Seller  in  accordance  with  Section  2.3 of the  Sale  and
           Servicing  Agreement  and (ii) to the  Servicer  in  accordance  with
           Section 3.7 of the Sale and Servicing Agreement.

                            SECTION  8.5  Opinion  of  Counsel.   The  Indenture
           Trustee shall  receive at least seven (7) days notice when  requested
           by the  Issuer  to  take  any  action  pursuant  to  Section  8.4(a),
           accompanied by copies of any instruments involved,  and the Indenture
           Trustee  shall also  require,  except in  connection  with any action
           contemplated  by Section  8.4(c),  as a condition to such action,  an
           Opinion  of  Counsel,  in  form  and  substance  satisfactory  to the
           Indenture  Trustee,  stating  the legal  effect  of any such  action,
           outlining  the steps  required to complete the same,  and  concluding
           that all conditions  precedent to the taking of such action have been
           complied  with and such  action  will not  materially  and  adversely
           impair the security for the Notes or the rights of the Noteholders in
           contravention of the provisions of this Indenture; provided, however,
           that such  Opinion of  Counsel  shall not be  required  to express an
           opinion as to the fair value of the Indenture  Trust Estate.  Counsel
           rendering   any  such   opinion   may   rely,   without   independent
           investigation,  on the accuracy and  validity of any  certificate  or
           other  instrument  delivered to the  Indenture  Trustee in connection
           with any such action.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

                            SECTION 9.1 Supplemental  Indentures Without Consent
           of  Noteholders.  (a) Without the consent of the Noteholders but with
           prior  notice to the Rating  Agencies,  the Issuer and the  Indenture
           Trustee,  when  authorized by an Issuer  Order,  at any time and from
           time to time,  may  enter  into one or more  indentures  supplemental
           hereto (which shall conform to the provisions of the Trust  Indenture
           Act as in  force  at the  date  of the  execution  thereof),  in form
           satisfactory  to the  Indenture  Trustee,  for  any of the  following
           purposes:

                  (i) to correct or amplify the  description  of any property at
                  any time subject to the lien of this  Indenture,  or better to
                  assure,  convey and  confirm  unto the  Indenture  Trustee any
                  property  subject or required to be  subjected  to the lien of
                  this  Indenture,  or to subject to the lien of this  Indenture
                  additional property;

                  (ii) to  evidence  the  succession,  in  compliance  with  the
                  applicable provisions hereof, of another Person to the Issuer,
                  and the  assumption by any such  successor of the covenants of
                  the Issuer herein and in the Notes contained;

                  (iii)  to add to the covenants of the Issuer, for the benefit
                  of the Noteholders, or to surrender any right or power herein
                  conferred upon the Issuer;

                  (iv)  to convey, transfer, assign, mortgage or pledge any
                  property to or with the Indenture Trustee;

                  (v) to cure  any  ambiguity,  to  correct  or  supplement  any
                  provision herein or in any supplemental  indenture that may be
                  inconsistent  with  any  other  provision  herein  or  in  any
                  supplemental  indenture or to make any other  provisions  with
                  respect to matters or questions  arising under this  Indenture
                  or  under  any  supplemental  indenture  which  shall  not  be
                  inconsistent  with the provisions of the  Indenture;  provided
                  that such action  shall not  materially  adversely  affect the
                  interests of the Noteholders;

                    (vi) to  evidence  and  provide  for the  acceptance  of the
                  appointment  hereunder by a successor  trustee with respect to
                  the  Notes and to add to or change  any of the  provisions  of
                  this  Indenture  as  shall  be  necessary  to  facilitate  the
                  administration  of the  trusts  hereunder  by  more  than  one
                  trustee, pursuant to the requirements of Article VI; or

                  (vii) to modify,  eliminate or add to the  provisions  of this
                  Indenture  to such extent as shall be  necessary to affect the
                  qualification  of this  Indenture  under  the TIA or under any
                  similar federal statute  hereafter  enacted and to add to this
                  Indenture such other  provisions as may be expressly  required
                  by the TIA.

                            The Indenture  Trustee is hereby  authorized to join
           in the execution of any such  supplemental  indenture and to make any
           further  appropriate  agreements and stipulations that may be therein
           contained.

                            (b) The  Issuer  and  the  Indenture  Trustee,  when
           authorized by an Issuer  Order,  may, also without the consent of any
           of the  Noteholders  but with prior  notice to the  Rating  Agencies,
           enter into an indenture  or  indentures  supplemental  hereto for the
           purpose of adding any  provisions  to, or  changing  in any manner or
           eliminating  any of the provisions of, this Indenture or of modifying
           in any manner (other than the modifications set forth in Section 9.2)
           the  rights  of  the  Noteholders  under  this  Indenture;  provided,
           however,  that (i) such action  shall not, as evidenced by an Opinion
           of Counsel, adversely affect in any material respect the interests of
           any  Noteholder,  (ii) the Rating  Agency  Condition  shall have been
           satisfied  with  respect to such action and (iii) such  action  shall
           not, as  evidenced  by an Opinion of Counsel,  cause the Issuer to be
           characterized for federal or any then Applicable Tax State income tax
           purposes as an association taxable as a corporation or otherwise have
           any material adverse impact on the federal or any then Applicable Tax
           State  income  taxation  of  any  Notes  Outstanding  or  outstanding
           Certificates or any Noteholder or Certificateholder.

                            SECTION 9.2 Supplemental  Indentures with Consent of
           Noteholders. The Issuer and the Indenture Trustee, when authorized by
           an Issuer Order,  also may, with prior notice to the Rating  Agencies
           and the consent of a majority of the Note Balance of the  Controlling
           Note Class, enter into an indenture or indentures supplemental hereto
           for the  purpose  of adding any  provisions  to, or  changing  in any
           manner or  eliminating  any of the  provisions  of, this Indenture or
           modifying  in any  manner the  rights of the  Noteholders  under this
           Indenture;  provided,  however,  that (i) the Rating Agency Condition
           shall have been  satisfied  with respect to such action and (ii) such
           action shall not, as  evidenced  by an Opinion of Counsel,  cause the
           Issuer to be  characterized  for federal or any then  Applicable  Tax
           State income tax purposes as an association  taxable as a corporation
           or otherwise  have any material  adverse impact on the federal or any
           then Applicable Tax State income taxation of any Notes Outstanding or
           outstanding Certificates or any Noteholder or Certificateholder;  and
           provided, further, that no such supplemental indenture shall, without
           the consent of each Outstanding Note affected thereby:

                  (i)  modify or alter provisions of this Section 9.2;

                  (ii) change the Final Scheduled  Distribution Date or the date
                  of payment of any  installment  of principal of or interest on
                  any Note, or reduce the principal amount thereof, the interest
                  rate thereon or the  Redemption  Price with  respect  thereto,
                  change  the  provisions  of  this  Indenture  relating  to the
                  application of collections on, or the proceeds of the sale of,
                  the  Indenture  Trust  Estate to  payment of  principal  of or
                  interest on the Notes,  or change any place of payment  where,
                  or the coin or  currency  in which,  any Note or the  interest
                  thereon is payable,  or impair the right to institute suit for
                  the enforcement of the provisions of this Indenture  requiring
                  the  application of funds available  therefor,  as provided in
                  Article V, to the  payment of any such amount due on the Notes
                  on or after the  respective due dates thereof (or, in the case
                  of redemption, on or after the Redemption Date);

                  (iii) reduce the  percentage  of the  principal  amount of the
                  Notes  Outstanding or the Controlling  Note Class, the consent
                  of  the   Noteholders  of  which  is  required  for  any  such
                  supplemental  indenture,  or the consent of the Noteholders of
                  which is required  for any waiver of  compliance  with certain
                  provisions of this Indenture or certain  Defaults or Events of
                  Default hereunder and their consequences  provided for in this
                  Indenture;

                  (iv) modify or alter (x) the provisions of the proviso to the
                  definition of the term "Outstanding" or (y) the definition of
                  "Controlling Note Class";

                  (v) reduce the percentage of the principal amount of the Notes
                  Outstanding  or of the  Controlling  Note  Class  required  to
                  direct or consent to a sale or  liquidation  by the  Indenture
                  Trustee of the Indenture  Trust Estate pursuant to Section 5.4
                  if  the  proceeds  of  such  sale  or  liquidation   would  be
                  insufficient  to pay the  principal  amount  and  accrued  but
                  unpaid  interest  on the Notes  and/or  the  Certificates,  as
                  applicable;

                  (vi)  modify any  provision  of this  Indenture  specifying  a
                  percentage  of  the  aggregate   Note  Balance  of  the  Notes
                  necessary to amend this Indenture or the other Basic Documents
                  except  to  increase  any  percentage  specified  herein or to
                  provide that certain  additional  provisions of this Indenture
                  or the other  Basic  Documents  cannot be  modified  or waived
                  without the consent of the Noteholder of each Outstanding Note
                  affected thereby;

                  (vii) modify any of the  provisions of this  Indenture in such
                  manner  as to  affect  the  calculation  of the  amount of any
                  payment  of  interest  or  principal  due on any  Note  on any
                  Distribution  Date  (including  the  calculation of any of the
                  individual  components of such  calculation)  or to affect the
                  rights of the Noteholders to the benefit of any provisions for
                  the mandatory redemption of the Notes contained herein; or

                  (viii)  permit the creation of any lien ranking prior to or on
                  a parity with the lien of this  Indenture  with respect to any
                  part of the  Indenture  Trust  Estate or,  except as otherwise
                  permitted or contemplated  herein,  terminate the lien of this
                  Indenture on any such collateral at any time subject hereto or
                  deprive any Noteholder of the security provided by the lien of
                  this Indenture.

           The  Indenture  Trustee may in its  discretion  or upon receipt of an
           Opinion  of  Counsel  determine  whether  or not any  Notes  would be
           affected by any  supplemental  indenture  and any such  determination
           shall  be  conclusive  upon the  Noteholders  of all  Notes,  whether
           theretofore or thereafter  authenticated and delivered hereunder. The
           Indenture Trustee shall not be liable for any such determination made
           in good faith.

                            It shall not be necessary for any Act of Noteholders
           under this Section 9.2 to approve the particular form of any proposed
           supplemental indenture,  but it shall be sufficient if such Act shall
           approve the substance thereof.

                            Promptly  after the  execution by the Issuer and the
           Indenture  Trustee of any  supplemental  indenture  pursuant  to this
           Section 9.2, the Indenture  Trustee shall mail to the  Noteholders of
           the Notes to which such amendment or supplemental indenture relates a
           notice   setting  forth  in  general  terms  the  substance  of  such
           supplemental indenture.  Any failure of the Indenture Trustee to mail
           such notice, or any defect therein,  shall not,  however,  in any way
           impair or affect the validity of any such supplemental indenture.

                            SECTION 9.3 Execution of Supplemental Indentures. In
           executing,  or  permitting  the  additional  trusts  created  by, any
           supplemental   indenture   permitted   by  this  Article  IX  or  the
           modification  thereby of the trusts  created by this  Indenture,  the
           Indenture  Trustee  shall be  entitled  to  receive,  and  subject to
           Sections 6.1 and 6.2,  shall be fully  protected in relying  upon, an
           Opinion of Counsel  stating that the  execution of such  supplemental
           indenture is authorized  or permitted by this  Indenture and that all
           conditions   precedent  to  the   execution   and  delivery  of  such
           supplemental  indenture have been  satisfied.  The Indenture  Trustee
           may, but shall not be obligated to, enter into any such  supplemental
           indenture  that affects the Indenture  Trustee's own rights,  duties,
           liabilities or immunities under this Indenture or otherwise.

                            SECTION 9.4 Effect of Supplemental  Indenture.  Upon
           the  execution  of  any  supplemental   indenture   pursuant  to  the
           provisions hereof,  this Indenture shall be and shall be deemed to be
           modified  and amended in  accordance  therewith  with  respect to the
           Notes affected  thereby,  and the respective  rights,  limitations of
           rights,  obligations,  duties,  liabilities and immunities under this
           Indenture of the Indenture  Trustee,  the Issuer and the  Noteholders
           shall  thereafter be  determined,  exercised  and enforced  hereunder
           subject in all respects to such modifications and amendments, and all
           the terms and conditions of any such supplemental  indenture shall be
           and be  deemed  to be  part  of the  terms  and  conditions  of  this
           Indenture for any and all purposes.

                            SECTION 9.5  Conformity  with Trust  Indenture  Act.
           Every  amendment of this Indenture and every  supplemental  indenture
           executed   pursuant  to  this   Article  IX  shall   conform  to  the
           requirements  of the Trust Indenture Act as then in effect so long as
           this Indenture shall then be qualified under the Trust Indenture Act.

                            SECTION  9.6  Reference  in  Notes  to  Supplemental
           Indentures.  Notes authenticated and delivered after the execution of
           any  supplemental  indenture  pursuant to this Article IX may, and if
           required  by the  Indenture  Trustee  shall,  bear a notation in form
           approved by the  Indenture  Trustee as to any matter  provided for in
           such supplemental  indenture.  If the Issuer or the Indenture Trustee
           shall so  determine,  new Notes so  modified  as to  conform,  in the
           opinion  of the  Indenture  Trustee  and  the  Issuer,  to  any  such
           supplemental indenture may be prepared and executed by the Issuer and
           authenticated  and delivered by the Indenture Trustee in exchange for
           Outstanding Notes.

                                    ARTICLE X

                               REDEMPTION OF NOTES

                            SECTION 10.1  Redemption.  The Class A Notes and the
           Class B Notes are subject to redemption in whole, but not in part, at
           the direction of the Servicer pursuant to Section 9.1 of the Sale and
           Servicing  Agreement,  on any Distribution Date on which the Servicer
           exercises its option to purchase the assets of the Issuer pursuant to
           such  Section  9.1,  and the  amount  paid by the  Servicer  shall be
           treated as collections  of Receivables  and applied to pay the unpaid
           principal amount of the Notes and the Aggregate  Certificate  Balance
           of the Certificates plus accrued and unpaid interest thereon.  If the
           Class A Notes and the Class B Notes are to be  redeemed  pursuant  to
           this Section 10.1(a), the Servicer or the Issuer shall furnish notice
           of such election to the Indenture Trustee and the Rating Agencies not
           later  than forty  (40) days  prior to the  Redemption  Date (and the
           Indenture  Trustee shall promptly  furnish notice to the Noteholders)
           and the Issuer  shall  deposit by 10:00 a.m.  (New York City time) on
           the  Redemption  Date with the  Indenture  Trustee in the  Collection
           Account  the  Redemption  Price of the  Class A Notes and the Class B
           Notes to be  redeemed,  whereupon  all such Class A Notes and Class B
           Notes shall be due and payable on the Redemption Date.

                            SECTION 10.2 Form of  Redemption  Notice.  Notice of
           redemption  under  Section  10.1(a)  shall be given by the  Indenture
           Trustee by first-class mail, postage prepaid,  or by facsimile mailed
           or transmitted  promptly  following receipt of notice from the Issuer
           or Servicer  pursuant to Section  10.1(a),  but not later than thirty
           (30) days prior to the applicable Redemption Date, to each Noteholder
           as of  the  close  of  business  on the  Record  Date  preceding  the
           applicable Redemption Date, at such Noteholder's address or facsimile
           number appearing in the Note Register.

                            All notices of redemption shall state:

                  (i)the Redemption Date;

                  (ii)the Redemption Price;

                  (iii) the place  where  such Notes are to be  surrendered  for
                  payment of the Redemption  Price (which shall be the office or
                  agency of the Issuer to be  maintained  as provided in Section
                  3.2); and

                  (iv) that on the Redemption  Date,  the Redemption  Price will
                  become due and payable  upon each such Note and that  interest
                  thereon shall cease to accrue for and after said date.

           Notice of  redemption  of the Notes  shall be given by the  Indenture
           Trustee in the name and at the expense of the Issuer. Failure to give
           notice of redemption,  or any defect therein, to any Noteholder shall
           not  impair or affect the  validity  of the  redemption  of any other
           Note.

                            SECTION 10.3 Notes Payable on Redemption  Date.  The
           Notes  to be  redeemed  shall,  following  notice  of  redemption  as
           required  by  Section  10.2 (in the case of  redemption  pursuant  to
           Section 10.1(a)), shall on the Redemption Date become due and payable
           at the  Redemption  Price and (unless the Issuer shall default in the
           payment of the  Redemption  Price) no  interest  shall  accrue on the
           Redemption  Price  for any  period  after  the date to which  accrued
           interest is calculated  for purposes of  calculating  the  Redemption
           Price.

                                   ARTICLE XI

                                  MISCELLANEOUS

                            SECTION 11.1 Compliance  Certificates  and Opinions,
           etc.  (a)  Upon any  application  or  request  by the  Issuer  to the
           Indenture  Trustee to take any  action  under any  provision  of this
           Indenture,  the Issuer shall furnish to the Indenture  Trustee (i) an
           Officer's Certificate stating that all conditions precedent,  if any,
           provided for in this Indenture  relating to the proposed  action have
           been complied  with,  (ii) an Opinion of Counsel  stating that in the
           opinion of such counsel all such conditions  precedent,  if any, have
           been complied with and (iii) (if required by the TIA) an  Independent
           Certificate from a firm of certified public  accountants  meeting the
           applicable  requirements  of this Section  11.1,  except that, in the
           case of any such application or request as to which the furnishing of
           such  documents  is  specifically  required by any  provision of this
           Indenture, no additional certificate or opinion need be furnished.

                            Every   certificate   or  opinion  with  respect  to
           compliance  with  a  condition  or  covenant  provided  for  in  this
           Indenture shall include:

         (A) a statement that each signatory of such  certificate or opinion has
         read or has  caused  to be read  such  covenant  or  condition  and the
         definitions herein relating thereto;

         (B) a brief  statement as to the nature and scope of the examination or
         investigation  upon which the statements or opinions  contained in such
         certificate or opinion are based;

         (C) a  statement  that,  in the  opinion of each such  signatory,  such
         signatory has made such examination or investigation as is necessary to
         enable such  signatory to express an informed  opinion as to whether or
         not such covenant or condition has been complied with; and

         (D) a statement as to whether,  in the opinion of each such  signatory,
         such condition or covenant has been complied with.

                    (b) (i)  Prior to the  deposit  of any  Collateral  or other
                  property or securities  with the Indenture  Trustee that is to
                  be  made  the  basis  for  the  release  of  any  property  or
                  securities  subject to the lien of this Indenture,  the Issuer
                  shall,  in  addition  to any  obligation  imposed  in  Section
                  11.1(a)  or  elsewhere  in  this  Indenture,  furnish  to  the
                  Indenture  Trustee  an  Officer's  Certificate  certifying  or
                  stating the opinion of each person signing such certificate as
                  to the fair value (within ninety (90) days of such deposit) to
                  the Issuer of the  Collateral or other  property or securities
                  to be so deposited.

                  (ii)  Whenever  the  Issuer  is  required  to  furnish  to the
                  Indenture  Trustee  an  Officer's  Certificate  certifying  or
                  stating  the  opinion of any signer  thereof as to the matters
                  described  in clause (i) above,  the Issuer shall also deliver
                  to the Indenture Trustee an Independent  Certificate as to the
                  same  matters,  if  the  fair  value  to  the  Issuer  of  the
                  securities to be so deposited and of all other such securities
                  made the basis of any such  withdrawal  or  release  since the
                  commencement of the then-current fiscal year of the Issuer, as
                  set forth in the certificates delivered pursuant to clause (i)
                  above and this clause  (ii),  is ten percent  (10%) or more of
                  the  principal  amount  of the Notes  Outstanding,  but such a
                  certificate   need  not  be  furnished  with  respect  to  any
                  securities  so  deposited,  if the fair  value  thereof to the
                  Issuer as set forth in the related  Officer's  Certificate  is
                  less  than  $25,000  or  less  than  one  percent  (1%) of the
                  principal amount of the Notes Outstanding.

                  (iii)  Whenever any property or securities  are to be released
                  from the lien of this Indenture, the Issuer shall also furnish
                  to the Indenture Trustee an Officer's  Certificate  certifying
                  or stating the opinion of each person signing such certificate
                  as to the fair value (within ninety (90) days of such release)
                  of the  property or  securities  proposed  to be released  and
                  stating  that in the  opinion  of  such  person  the  proposed
                  release will not impair the security  under this  Indenture in
                  contravention of the provisions hereof.

                  (iv)  Whenever  the  Issuer  is  required  to  furnish  to the
                  Indenture  Trustee  an  Officer's  Certificate  certifying  or
                  stating  the  opinion of any signer  thereof as to the matters
                  described in clause (iii) above, the Issuer shall also furnish
                  to the Indenture Trustee an Independent  Certificate as to the
                  same matters if the fair value of the  property or  securities
                  and of all other property, other than property as contemplated
                  by clause (v) below or  securities  released  from the lien of
                  this  Indenture  since the  commencement  of the  then-current
                  calendar  year, as set forth in the  certificates  required by
                  clause  (iii) above and this clause  (iv),  equals ten percent
                  (10%)  or  more  of  the   principal   amount   of  the  Notes
                  Outstanding, but such certificate need not be furnished in the
                  case of any  release of  property  or  securities  if the fair
                  value   thereof  as  set  forth  in  the   related   Officer's
                  Certificate is less than $25,000 or less than one percent (1%)
                  of the principal amount of the Notes Outstanding.

                  (v)  Notwithstanding  Section 2.10 or any other  provisions of
                  this Section 11.1, the Issuer may, without compliance with the
                  requirements of the other provisions of this Section 11.1, (A)
                  collect,  liquidate,  sell or otherwise dispose of Receivables
                  and  Financed  Vehicles  as  and to the  extent  permitted  or
                  required by the Basic Documents and (B) make cash payments out
                  of the Trust  Accounts and the Payahead  Account as and to the
                  extent permitted or required by the Basic Documents.

                            SECTION   11.2  Form  of   Documents   Delivered  to
           Indenture Trustee. (a) In any case where several matters are required
           to be  certified  by, or  covered by an  opinion  of,  any  specified
           Person, it is not necessary that all such matters be certified by, or
           covered by the opinion of, only one such  Person,  or that they be so
           certified  or covered by only one  document,  but one such Person may
           certify or give an opinion  with  respect to some  matters and one or
           more other such Persons as to other matters,  and any such Person may
           certify  or give an  opinion  as to such  matters  in one or  several
           documents.

                            (b) Any  certificate  or  opinion  of an  Authorized
           Officer of the  Issuer  may be based,  insofar as it relates to legal
           matters,  upon a certificate  or opinion of, or  representations  by,
           counsel,  unless such officer knows, or in the exercise of reasonable
           care should know, that the certificate or opinion or  representations
           with respect to the matters upon which such officer's  certificate or
           opinion is based are erroneous. Any such certificate of an Authorized
           Officer or opinion of counsel may be based,  insofar as it relates to
           factual matters, upon a certificate or opinion of, or representations
           by,  an  officer  or  officers  of  the  Servicer,  the  Seller,  the
           Administrator  or the  Issuer,  stating  that  the  information  with
           respect to such factual matters is in the possession of the Servicer,
           the Seller,  the  Administrator or the Issuer,  or in the exercise of
           reasonable  care  should  know,  that the  certificate  or opinion or
           representations with respect to such matters are erroneous.

                            (c) Where any Person is  required  to make,  give or
           execute two or more applications,  requests, comments,  certificates,
           statements,  opinions or other instruments under this Indenture, they
           may, but need not, be consolidated and form one instrument.

                            (d) Whenever in this  Indenture,  in connection with
           any application or certificate or report to the Indenture Trustee, it
           is provided that the Issuer shall deliver any document as a condition
           of the granting of such  application,  or as evidence of the Issuer's
           compliance  with any term hereof,  it is intended  that the truth and
           accuracy,  at the time of the granting of such  application or at the
           effective date of such certificate or report (as the case may be), of
           the facts and opinions  stated in such document shall in such case be
           conditions  precedent  to  the  right  of the  Issuer  to  have  such
           application  granted or to the  sufficiency  of such  certificate  or
           report. The foregoing shall not, however,  be construed to affect the
           Indenture  Trustee's right to rely upon the truth and accuracy of any
           statement or opinion  contained  in any such  document as provided in
           Article VI.

                            SECTION 11.3 Acts of  Noteholders.  (a) Any request,
           demand,  authorization,  direction,  notice, consent, waiver or other
           action provided by this Indenture to be given or taken by Noteholders
           may be  embodied  in and  evidenced  by one or  more  instruments  of
           substantially  similar tenor signed by such  Noteholders in person or
           by agents duly appointed in writing;  and except as herein  otherwise
           expressly  provided  such action  shall  become  effective  when such
           instrument or  instruments  are  delivered to the Indenture  Trustee,
           and,  where it is hereby  expressly  required,  to the  Issuer.  Such
           instrument  or  instruments  (and  the  action  embodied  herein  and
           evidenced  thereby) are herein sometimes  referred to as the "Act" of
           the  Noteholders  signing such  instrument or  instruments.  Proof of
           execution of any such instrument or of a writing  appointing any such
           agent  shall be  sufficient  for any  purpose of this  Indenture  and
           (subject to Section 6.1) conclusive in favor of the Indenture Trustee
           and the Issuer, if made in the manner provided in this Section 11.3.

                            (b) The fact and date of the execution by any Person
           of any such  instrument  or writing  may be proved in any manner that
           the Indenture Trustee deems sufficient.

                            (c)  The ownership of Notes shall be proved by the
           Note Register.

                            (d) Any request, demand,  authorization,  direction,
           notice,  consent,  waiver or other  action by the  Noteholder  of any
           Notes  shall  bind the  Noteholder  of  every  Note  issued  upon the
           registration  thereof or in exchange therefor or in lieu thereof,  in
           respect  of  anything  done,  omitted or  suffered  to be done by the
           Indenture Trustee or the Issuer in reliance  thereon,  whether or not
           notation of such action is made upon such Note.

                            SECTION 11.4 Notices,  etc.,  to Indenture  Trustee,
           Issuer and  Rating  Agencies.  Any  request,  demand,  authorization,
           direction,  notice,  consent,  waiver or Act of  Noteholders or other
           documents provided or permitted by this Indenture shall be in writing
           and  if  such  request,  demand,  authorization,  direction,  notice,
           consent,  waiver or Act of Noteholders  is to be made upon,  given or
           furnished to or filed with:

                  (i) the Indenture Trustee by any Noteholder, the Servicer, the
                  Administrator  or the  Issuer  shall be  sufficient  for every
                  purpose  hereunder  if  made,  given,  furnished  or  filed in
                  writing  to or with the  Indenture  Trustee  at its  Corporate
                  Trust office; or

                  (ii) the Issuer by the Indenture  Trustee or by any Noteholder
                  shall be sufficient for every purpose  hereunder if in writing
                  and  mailed   first-class,   postage  prepaid  to  the  Issuer
                  addressed to: Ford Credit Auto Owner Trust 2000-G,  in care of
                  The Bank of New York, 101 Barclay  Street,  Floor 12 East, New
                  York, New York, 10256,  Attention:  Asset-Backed Finance Unit,
                  with a copy to the Administrator at Ford Motor Company,  World
                  Headquarters,  Office of the  General  Counsel,  One  American
                  Road, Suite 1034-A1,  Dearborn,  Michigan 48121,  attention of
                  the Secretary, or at any other address previously furnished in
                  writing  to  the  Indenture  Trustee  by  the  Issuer  or  the
                  Administrator.  The Issuer shall promptly  transmit any notice
                  received by it from the Noteholders to the Indenture Trustee.

                            Notices  required to be given to the Rating Agencies
           by the Issuer, the Indenture Trustee or the Owner Trustee shall be in
           writing,  personally  delivered,  telecopied  or mailed by  certified
           mail, return receipt requested, to (i) in the case of Moody's, at the
           following address:  Moody's Investors  Service,  Inc., ABS Monitoring
           Department,  99 Church Street, New York, New York 10007, (ii) in case
           of Standard & Poor's,  at the  following  address:  Standard & Poor's
           Ratings  Services,  55 Water Street,  40th Floor,  New York, New York
           10041,  Attention:  Asset Backed Surveillance Department and (iii) in
           the case of Fitch,  at the following  address:  Fitch,  Inc., 1 State
           Street  Plaza,  New York,  New York 10004,  Attention:  Asset  Backed
           Surveillance.

                            SECTION 11.5  Notices to  Noteholders;  Waiver.  (a)
           Where this Indenture provides for notice to Noteholders of any event,
           such notice shall be  sufficiently  given  (unless  otherwise  herein
           expressly  provided) if in writing and mailed,  first-class,  postage
           prepaid to each Noteholder  affected by such event, at his address as
           it appears on the Note Register,  not later than the latest date, and
           not earlier than the earliest date, prescribed for the giving of such
           notice.  In any case where  notice to  Noteholders  is given by mail,
           neither  the failure to mail such notice nor any defect in any notice
           so mailed to any particular  Noteholder  shall affect the sufficiency
           of such notice with respect to other Noteholders, and any notice that
           is  mailed  in the  manner  herein  provided  shall  conclusively  be
           presumed to have been duly given.

                            (b) Where this Indenture  provides for notice in any
           manner,  such notice may be waived in writing by any Person  entitled
           to receive such notice,  either  before or after the event,  and such
           waiver shall be the  equivalent of such notice.  Waivers of notice by
           Noteholders shall be filed with the Indenture Trustee but such filing
           shall not be a  condition  precedent  to the  validity  of any action
           taken in reliance upon such a waiver.

                            (c) In case, by reason of the  suspension of regular
           mail  service  as a result  of a strike,  work  stoppage  or  similar
           activity,  it shall be  impractical  to mail  notice  of any event to
           Noteholders  when such notice is required to be given pursuant to any
           provision of this Indenture, then any manner of giving such notice as
           shall be satisfactory to the Indenture  Trustee shall be deemed to be
           a sufficient giving of such notice.

                            (d) Where this Indenture  provides for notice to the
           Rating  Agencies,  failure to give such  notice  shall not affect any
           other rights or obligations  created  hereunder,  and shall not under
           any circumstance constitute a Default or Event of Default.

                            SECTION   11.6   Alternate    Payment   and   Notice
           Provisions. Notwithstanding any provision of this Indenture or any of
           the Notes to the  contrary,  the Issuer may enter into any  agreement
           with any Noteholder  providing for a method of payment,  or notice by
           the  Indenture  Trustee or any Note Paying Agent to such  Noteholder,
           that is different from the methods provided for in this Indenture for
           such  payments or notices.  The Issuer shall furnish to the Indenture
           Trustee a copy of each such agreement and the Indenture Trustee shall
           cause payments to be made and notices to be given in accordance  with
           such agreements.

                            SECTION 11.7 Conflict with Trust  Indenture  Act. If
           any  provision  hereof  limits,  qualifies or conflicts  with another
           provision  hereof  that is  required or deemed to be included in this
           Indenture by any of the  provisions of the Trust  Indenture Act, such
           required or deemed provision shall control.

                            The  provisions of TIA Sections 310 through 317 that
           impose duties on any Person  (including the provisions  automatically
           deemed included herein unless  expressly  excluded by this Indenture)
           are a part of and govern this  Indenture,  whether or not  physically
           contained herein.

                            SECTION   11.8  Effect  of  Headings  and  Table  of
           Contents.  The Article and Section  headings  herein and the Table of
           Contents  are  for   convenience   only  and  shall  not  affect  the
           construction hereof.

                            SECTION 11.9  Successors and Assigns.  All covenants
           and  agreements  in this  Indenture and the Notes by the Issuer shall
           bind its  successors  and  assigns,  whether so expressed or not. All
           agreements of the Indenture  Trustee in this Indenture shall bind its
           successors, co-trustees and agents.

                            SECTION 11.10 Separability. In case any provision in
           this  Indenture  or  in  the  Notes  shall  be  invalid,  illegal  or
           unenforceable,  the validity,  legality,  and  enforceability  of the
           remaining  provisions  shall not in any way be  affected  or impaired
           thereby.

                            SECTION 11.11 Benefits of Indenture. Nothing in this
           Indenture  or in the  Notes,  express or  implied,  shall give to any
           Person, other than the parties hereto and their successors hereunder,
           and the Noteholders,  and any other party secured hereunder,  and any
           other Person with an ownership  interest in any part of the Indenture
           Trust Estate, any benefit or any legal or equitable right,  remedy or
           claim under this Indenture.

                         SECTION  11.12  Legal  Holidays.  In any case where the
           date on which any  payment is due shall not be a Business  Day,  then
           (notwithstanding  any other provision of the Notes or this Indenture)
           payment  need not be made on such  date,  but may be made on the next
           succeeding  Business Day with the same force and effect as if made on
           the date on which nominally due, and no interest shall accrue for the
           period from and after any such nominal date.

                            SECTION 11.13 Governing Law. This Indenture shall be
           construed  in  accordance  with  the laws of the  State of New  York,
           without reference to its conflict of law provisions.

                            SECTION 11.14  Counterparts.  This  Indenture may be
           executed  in any number of  counterparts,  each of which so  executed
           shall be deemed to be an original,  but all such  counterparts  shall
           together constitute but one and the same instrument.

                            SECTION  11.15  Recording  of  Indenture.   If  this
           Indenture is subject to recording in any appropriate public recording
           offices,  such  recording  is to be effected by the Issuer and at its
           expense accompanied by an Opinion of Counsel (which may be counsel to
           the Indenture Trustee or any other counsel  reasonably  acceptable to
           the Indenture Trustee) to the effect that such recording is necessary
           either for the  protection  of the  Noteholders  or any other  Person
           secured  hereunder  or for the  enforcement  of any  right or  remedy
           granted to the Indenture Trustee under this Indenture.

                            SECTION 11.16 Trust  Obligation.  No recourse may be
           taken, directly or indirectly, with respect to the obligations of the
           Issuer,  the Owner Trustee or the  Indenture  Trustee on the Notes or
           under this Indenture or any certificate or other writing delivered in
           connection  herewith or therewith,  against (i) the Indenture Trustee
           or the Owner Trustee in their individual  capacities,  (ii) any owner
           of a beneficial  interest in the Issuer or (iii) any partner,  owner,
           beneficiary,  agent,  officer,  director,  employee  or  agent of the
           Indenture   Trustee  or  the  Owner   Trustee  in  their   individual
           capacities,  any holder of a beneficial  interest in the Issuer,  the
           Owner Trustee or the Indenture  Trustee or of any successor or assign
           of the  Indenture  Trustee or the Owner  Trustee in their  individual
           capacities,  except as any such Person may have expressly  agreed (it
           being  understood  that the  Indenture  Trustee and the Owner Trustee
           have no such obligations in their individual capacities),  and except
           that any such partner, owner or beneficiary shall be fully liable, to
           the extent provided by applicable  law, for any unpaid  consideration
           for  stock,  unpaid  capital  contribution  or  failure  to  pay  any
           installment  or call owing to such  entity.  For all purposes of this
           Indenture,  in the  performance  of any duties or  obligations of the
           Issuer hereunder, the Owner Trustee shall be subject to, and entitled
           to the benefits of, the terms and  provisions  of Article VI, VII and
           VIII of the Trust Agreement.

                            SECTION 11.17 No Petition. The Indenture Trustee, by
           entering into this  Indenture,  and each Noteholder or Note Owner, by
           accepting  a Note  or,  in the  case of a Note  Owner,  a  beneficial
           interest in a Note,  hereby  covenant and agree that they will not at
           any time  institute  against the Seller,  the General  Partner or the
           Issuer,  or join in any institution  against the Seller,  the General
           Partner   or  the  Issuer   of,   any   bankruptcy,   reorganization,
           arrangement,   insolvency  or  liquidation   proceedings,   or  other
           proceedings  under any United States  federal or State  bankruptcy or
           similar law in connection with any obligations relating to the Notes,
           this Indenture or any of the other Basic Documents.

                            SECTION  11.18  Inspection.  The Issuer agrees that,
           with reasonable prior notice,  it will permit any  representative  of
           the Indenture Trustee,  during the Issuer's normal business hours, to
           examine all the books of account,  records,  reports and other papers
           of the Issuer, to make copies and extracts  therefrom,  to cause such
           books to be audited by Independent certified public accountants,  and
           to discuss the  Issuer's  affairs,  finances  and  accounts  with the
           Issuer's  officers,   employees,  and  Independent  certified  public
           accountants,  all at such  reasonable  times  and as  often as may be
           reasonably requested. The Indenture Trustee shall and shall cause its
           representatives  to hold in confidence all such information except to
           the extent  disclosure  may be  required  by law (and all  reasonable
           applications for confidential treatment are unavailing) and except to
           the extent that the Indenture  Trustee may reasonably  determine that
           such disclosure is consistent with its obligations hereunder.

<PAGE>

                            IN WITNESS  WHEREOF,  the  Issuer and the  Indenture
           Trustee  have  caused  this  Indenture  to be duly  executed by their
           respective officers, thereunto duly authorized, all as of the day and
           year first above written.

                                     FORD CREDIT AUTO OWNER TRUST 2000-G

                                         By:    THE BANK OF NEW YORK,
                                                  not in its individual capacity
                                                  but solely as Owner Trustee of
                                                  Ford Credit Auto Owner Trust
                                                  2000-G

                                                  By: /s/ John Bobko
                                                  Name: John Bobko
                                                  Title: Assistant Treasurer

                                     THE CHASE MANHATTAN BANK,
                                     not in its individual capacity
                                     but solely as Indenture Trustee

                                            By:   /s/ William T. Lewis
                                            Name:    William T. Lewis
                                            Title:   Senior Vice President

<PAGE>

                                                                     EXHIBIT A-1

                             FORM OF CLASS A-1 NOTE

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

           THE  PRINCIPAL OF THIS NOTE IS PAYABLE IN  INSTALLMENTS  AS SET FORTH
           HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT
           ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

           THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933
           PURSUANT  TO THE  EXEMPTION  FROM  REGISTRATION  SET FORTH IN SECTION
           3(a)(3) THEREOF.

           REGISTERED                                             $270,000,000

           No. R-1                                        CUSIP NO. 34527R FB 4

                       FORD CREDIT AUTO OWNER TRUST 2000-G

                       CLASS A-1 6.569% ASSET BACKED NOTES

                            Ford  Credit  Auto Owner  Trust  2000-G,  a business
           trust  organized and existing under the laws of the State of Delaware
           (herein  referred to as the  "Issuer"),  for value  received,  hereby
           promises to pay to CEDE & CO., or registered  assigns,  the principal
           sum  of  TWO  HUNDRED   SEVENTY   MILLION  DOLLARS  payable  on  each
           Distribution Date in an amount equal to the aggregate amount, if any,
           payable to Noteholders of Class A-1 Notes on such  Distribution  Date
           from the  Principal  Distribution  Account in respect of principal on
           the Class A-1 Notes pursuant to Section 3.1 of the Indenture dated as
           of November 1, 2000 (as from time to time  amended,  supplemented  or
           otherwise  modified  and in effect,  the  "Indenture"),  between  the
           Issuer  and The Chase  Manhattan  Bank,  a New York  corporation,  as
           Indenture  Trustee  (in  such  capacity  the  "Indenture   Trustee");
           provided,  however,  that the entire unpaid  principal amount of this
           Note shall be due and  payable on the March  2001  Distribution  Date
           (the  "Class A-1 Final  Scheduled  Distribution  Date").  Capitalized
           terms used but not  defined  herein  are  defined in Article I of the
           Indenture, which also contains rules as to construction that shall be
           applicable herein.

                            The Issuer  shall pay  interest  on this Note at the
           rate per  annum  shown  above on each  Distribution  Date  until  the
           principal of this Note is paid or made available for payment,  on the
           principal   amount  of  this  Note   outstanding   on  the  preceding
           Distribution  Date (after  giving effect to all payments of principal
           made  on  the  preceding   Distribution  Date),  subject  to  certain
           limitations  contained in Section 3.1 of the  Indenture.  Interest on
           this Note will accrue for each  Distribution  Date from and including
           the previous  Distribution  Date on which interest has been paid (or,
           in the case of the initial  Distribution Date, from the Closing Date)
           to but excluding such Distribution Date. Interest will be computed on
           the basis of actual days elapsed and a 360-day year.  Such  principal
           of and interest on this Note shall be paid in the manner specified on
           the reverse hereof.

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

                            Reference is made to the further  provisions of this
           Note set  forth on the  reverse  hereof,  which  shall  have the same
           effect as though fully set forth on the face of this Note.

<PAGE>

                            Unless the certificate of authentication  hereon has
           been  executed by the  Indenture  Trustee whose name appears below by
           manual  signature,  this Note shall not be  entitled  to any  benefit
           under the Indenture referred to on the reverse hereof, or be valid or
           obligatory for any purpose.

                REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

<PAGE>

A-1

                            IN WITNESS  WHEREOF,  the  Issuer  has  caused  this
           instrument to be signed,  manually or in facsimile, by its Authorized
           Officer, as of the date set forth below.

           Date:

                                            FORD CREDIT AUTO OWNER TRUST 2000-G

                                            By:    THE BANK OF NEW YORK,
                                            not in its individual capacity but
                                            solely as Owner Trustee of
                                            Ford Credit Auto Owner Trust 2000-G

                                         By:
                                                   Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

           This is one of the Class A-1 Notes  designated  above and referred to
           in the within-mentioned Indenture.

           Date:

                                          THE CHASE MANHATTAN BANK,
                                          not in its individual capacity but
                                          solely as Indenture Trustee

                                    By:
                                                   Authorized Officer

<PAGE>

                                 REVERSE OF NOTE

                            This Note is one of a duly authorized issue of Notes
           of the Issuer,  designated as its Class A-1 6.569% Asset Backed Notes
           (the "Class A-1 Notes")  which,  together with the Issuer's Class A-2
           6.688% Asset  Backed  Notes (the "Class A-2 Notes"),  Class A-3 6.67%
           Asset  Backed  Notes (the "Class A-3  Notes"),  Class A-4 6.62% Asset
           Backed  Notes (the "Class A-4  Notes"),  Class A-5 6.66% Asset Backed
           Notes (the "Class A-5 Notes" and,  together with the Class A-1 Notes,
           the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, the
           "Class A Notes") and Class B 6.92% Asset  Backed  Notes (the "Class B
           Notes" and, together with the Class A Notes, the "Notes"), are issued
           under  the   Indenture,   to  which   Indenture  and  all  indentures
           supplemental  thereto reference is hereby made for a statement of the
           respective  rights and  obligations  thereunder  of the  Issuer,  the
           Indenture  Trustee and the Noteholders.  The Notes are subject to all
           terms of the Indenture.

                            The  Class A-1  Notes  are and will be  equally  and
           ratably  secured by the  collateral  pledged as security  therefor as
           provided in the Indenture. The Class A-1 Notes are senior in right of
           payment  to the Class A-2 Notes,  the Class A-3 Notes,  the Class A-4
           Notes, the Class A-5 Notes and the Class B Notes,  each as and to the
           extent provided in the Indenture.

                            Principal  of the Class A-1 Notes will be payable on
           each  Distribution  Date in an amount  described  on the face hereof.
           "Distribution Date" means the fifteenth day of each month, or, if any
           such day is not a Business  Day, the next  succeeding  Business  Day,
           commencing in December 2000.

                            As described on the face hereof,  the entire  unpaid
           principal  amount of this Note shall be due and  payable on the Class
           A-1 Final Scheduled Distribution Date. Notwithstanding the foregoing,
           the  entire  unpaid  principal  amount of the Notes  shall be due and
           payable on the date on which an Event of Default  shall have occurred
           and be continuing  and the Indenture  Trustee or the  Noteholders  of
           Notes  evidencing not less than a majority of the principal amount of
           the Class A Notes have declared the Notes to be  immediately  due and
           payable in the manner  provided in Section 5.2 of the Indenture.  All
           principal  payments  on the Class A-1 Notes shall be made pro rata to
           the Noteholders entitled thereto.

                            Payments   of   interest   on  this   Note  on  each
           Distribution  Date,  together with the  installment of principal,  if
           any, to the extent not in full payment of this Note, shall be made to
           the Person whose name  appears as the  Registered  Noteholder  of the
           Note (or one or more  Predecessor  Notes) on the Note  Register as of
           the close of business on each Record Date either by wire  transfer in
           immediately  available  funds, to the account of such Noteholder at a
           bank or other entity having appropriate  facilities therefor, if such
           Noteholder  shall have  provided  to the Note  Registrar  appropriate
           written  instructions  at least five (5) Business  Days prior to such
           Distribution  Date  and  such  Noteholder's  Notes  in the  aggregate
           evidence a denomination of not less than  $1,000,000,  or, if not, by
           check mailed first-class  postage prepaid to such Person's address as
           it appears on the Note Register on such Record Date;  provided  that,
           unless Definitive Notes have been issued to Note Owners, with respect
           to Notes  registered on the Record Date in the name of the nominee of
           the  Clearing  Agency  (initially,  such  nominee  to be Cede & Co.),
           payments will be made by wire transfer in immediately available funds
           to the account designated by such nominee. Such payments will be made
           without  requiring  that  this  Note be  submitted  for  notation  of
           payment.  Any reduction in the principal  amount of this Note (or any
           one or more  Predecessor  Notes) effected by any payments made on any
           Distribution  Date shall be binding  upon all future  Noteholders  of
           this Note and of any Note  issued upon the  registration  of transfer
           hereof or in exchange hereof or in lieu hereof,  whether or not noted
           hereon.  If funds are  expected to be  available,  as provided in the
           Indenture, for payment in full of the then remaining unpaid principal
           amount  of this  Note on a  Distribution  Date,  then  the  Indenture
           Trustee,  in the name of and on behalf of the Issuer, will notify the
           Person who was the Registered Noteholder hereof as of the Record Date
           preceding such  Distribution  Date by notice mailed or transmitted by
           facsimile  prior to such  Distribution  Date, and the amount then due
           and payable shall be payable only upon  presentation and surrender of
           this Note at the Indenture Trustee's principal Corporate Trust Office
           or at the office of the Indenture  Trustee's agent appointed for such
           purposes located in The City of New York.

                            The   Issuer   shall   pay   interest   on   overdue
           installments of interest at the Class A-1 Rate to the extent lawful.

                            As provided in the Indenture,  the Class A Notes and
           the Class B Notes may be redeemed,  in whole but not in part,  in the
           manner and to the extent  described in the Indenture and the Sale and
           Servicing Agreement.

                            As provided in the Indenture, and subject to certain
           limitations  set  forth  therein,  the  transfer  of this Note may be
           registered  on the Note  Register  upon  surrender  of this  Note for
           registration  of transfer at the office or agency  designated  by the
           Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
           a  written  instrument  of  transfer  in  form  satisfactory  to  the
           Indenture  Trustee duly  executed by, the  Noteholder  hereof or such
           Noteholder's attorney duly authorized in writing, with such signature
           guaranteed  by  an  "eligible  guarantor   institution"  meeting  the
           requirements  of the Note  Registrar,  and  thereupon one or more new
           Notes of the same Class in authorized  denominations  and in the same
           aggregate   principal   amount  will  be  issued  to  the  designated
           transferee or transferees.  No service charge will be charged for any
           registration of transfer or exchange of this Note, but the transferor
           may be  required  to pay a sum  sufficient  to cover any tax or other
           governmental  charge that may be imposed in connection  with any such
           registration of transfer or exchange.

                            Each  Noteholder or Note Owner, by its acceptance of
           a Note or, in the case of a Note Owner,  a  beneficial  interest in a
           Note, covenants and agrees that no recourse may be taken, directly or
           indirectly,  with respect to the obligations of the Issuer, the Owner
           Trustee or the Indenture  Trustee on the Notes or under the Indenture
           or  any   certificate  or  other  writing   delivered  in  connection
           therewith,  against (i) the Indenture  Trustee or the Owner  Trustee,
           each in its  individual  capacity,  (ii) any  owner  of a  beneficial
           interest  in the  Issuer or (iii) any  partner,  owner,  beneficiary,
           agent, officer,  director or employee of the Indenture Trustee or the
           Owner  Trustee,  each in its  individual  capacity,  any  holder of a
           beneficial interest in the Issuer, the Owner Trustee or the Indenture
           Trustee or of any successor or assign of the Indenture Trustee or the
           Owner Trustee,  each in its individual  capacity,  except as any such
           Person may have  expressly  agreed and except that any such  partner,
           owner or beneficiary shall be fully liable, to the extent provided by
           applicable  law,  for any  unpaid  consideration  for  stock,  unpaid
           capital  contribution  for  stock,  unpaid  capital  contribution  or
           failure to pay any installment or call owing to such entity.

                            Each  Noteholder  or Note Owner,  by acceptance of a
           Note or, in the case of a Note  Owner,  a  beneficial  interest  in a
           Note, covenants and agrees by accepting the benefits of the Indenture
           that such  Noteholder  or Note Owner  will not at any time  institute
           against the Seller, the General Partner or the Issuer, or join in any
           institution against the Seller, the General Partner or the Issuer of,
           any   bankruptcy,   reorganization,    arrangement,   insolvency   or
           liquidation  proceedings  under any  United  States  federal or State
           bankruptcy or similar law in connection with any obligations relating
           to the Notes, the Indenture or the other Basic Documents.

                            The Issuer has entered into the  Indenture  and this
           Note is issued with the intention that, for federal,  State and local
           income,  and  franchise  tax  purposes,  the Notes  will  qualify  as
           indebtedness  of the Issuer  secured by the  Indenture  Trust Estate.
           Each Noteholder,  by its acceptance of a Note (and each Note Owner by
           its acceptance of a beneficial interest in a Note), will be deemed to
           agree to treat the Notes for federal,  State and local income, single
           business and franchise tax purposes as indebtedness of the Issuer.

                            Prior to the due  presentment  for  registration  of
           transfer of this Note,  the  Issuer,  the  Indenture  Trustee and any
           agent of the Issuer or the Indenture  Trustee may treat the Person in
           whose  name this Note (as of the day of  determination  or as of such
           other date as may be specified in the Indenture) is registered as the
           owner hereof for all  purposes,  whether or not this Note be overdue,
           and none of the Issuer, the Indenture Trustee or any such agent shall
           be affected by notice to the contrary.

                            The  Indenture  permits,   with  certain  exceptions
           requiring the consent of all Noteholders  affected thereby as therein
           provided,  the amendment  thereof and the  modification of the rights
           and obligations of the Issuer and the rights of the Noteholders under
           the  Indenture  at any time by the  Issuer  with the  consent  of the
           Noteholders  of Notes  evidencing  not less  than a  majority  of the
           principal  amount of the Controlling  Note Class.  The Indenture also
           permits the  Indenture  Trustee to amend or waive  certain  terms and
           conditions  set forth in the  Indenture  without  the  consent of the
           Noteholders  provided certain conditions are satisfied.  In addition,
           the Indenture contains provisions permitting the Noteholders of Notes
           evidencing specified percentages of the principal amount of the Notes
           Outstanding  or of the  Controlling  Note  Class,  on  behalf  of all
           Noteholders,   to  waive   compliance  by  the  Issuer  with  certain
           provisions  of the  Indenture  and certain  past  defaults  under the
           Indenture and their  consequences.  Any such consent or waiver by the
           Noteholder of this Note (or any one or more Predecessor  Notes) shall
           be conclusive  and binding upon such  Noteholder  and upon all future
           Noteholders of this Note and of any Note issued upon the registration
           of transfer hereof or in exchange hereof or in lieu hereof whether or
           not notation of such consent or waiver is made upon this Note.

                            The term  "Issuer",  as used in this Note,  includes
           any successor to the Issuer under the Indenture.

                            The  Issuer is  permitted  by the  Indenture,  under
           certain circumstances, to merge or consolidate, subject to the rights
           of the Indenture Trustee and the Noteholders under the Indenture.

                            The Notes are issuable  only in  registered  form in
           denominations  as  provided  in the  Indenture,  subject  to  certain
           limitations therein set forth.

                            This Note and the  Indenture  shall be governed  by,
           and construed in  accordance  with the laws of the State of New York,
           without reference to its conflicts of law provisions.

                            No  reference  herein  to  the  Indenture,   and  no
           provision of this Note or of the Indenture, shall alter or impair the
           obligation of the Issuer, which is absolute and unconditional, to pay
           the  principal of and  interest on this Note at the times,  place and
           rate, and in the coin or currency herein prescribed.

                            Anything  herein  to the  contrary  notwithstanding,
           except as  expressly  provided  in the Basic  Documents,  none of The
           Chase  Manhattan  Bank, in its individual  capacity,  The Bank of New
           York, in its individual capacity,  any owner of a beneficial interest
           in the Issuer,  or any of their respective  partners,  beneficiaries,
           agents, officers, directors, employees or successors or assigns shall
           be  personally  liable for, nor shall  recourse be had to any of them
           for,  the  payment  of  principal  or of  interest  on  this  Note or
           performance  of,  or  omission  to  perform,  any of  the  covenants,
           obligations  or  indemnifications  contained  in the  Indenture.  The
           Noteholder  of this Note,  by his  acceptance  hereof,  agrees  that,
           except as expressly  provided in the Basic Documents,  in the case of
           an Event of Default under the Indenture, the Noteholder shall have no
           claim against any of the foregoing for any deficiency,  loss or claim
           therefrom;  provided, however, that nothing contained herein shall be
           taken to prevent recourse to, and enforcement  against, the assets of
           the Issuer for any and all liabilities,  obligations and undertakings
           contained in the Indenture or in this Note.

<PAGE>

A-1

                                   ASSIGNMENT

    Social Security or taxpayer I.D. or other identifying number of assignee:

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

                         (name and address of assignee)

           the within  Note and all rights  thereunder,  and hereby  irrevocably
           constitutes  and appoints  _________________,  attorney,  to transfer
           said Note on the books kept for registration thereof, with full power
           of substitution in the premises.

           Dated:                                                           */
                              Signature Guaranteed

                                                                            */

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

<PAGE>

A-2

                                                                     EXHIBIT A-2

                             FORM OF CLASS A-2 NOTE

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

           THE  PRINCIPAL OF THIS NOTE IS PAYABLE IN  INSTALLMENTS  AS SET FORTH
           HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT
           ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

           THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933
           PURSUANT  TO THE  EXEMPTION  FROM  REGISTRATION  SET FORTH IN SECTION
           3(a)(3) THEREOF.

           REGISTERED                                              $450,000,000

           No. R-1                                        CUSIP NO. 34527R FC 2

                       FORD CREDIT AUTO OWNER TRUST 2000-G

                       CLASS A-2 6.688% ASSET BACKED NOTES

                            Ford  Credit  Auto Owner  Trust  2000-G,  a business
           trust  organized and existing under the laws of the State of Delaware
           (herein  referred to as the  "Issuer"),  for value  received,  hereby
           promises to pay to CEDE & CO., or registered  assigns,  the principal
           sum  of  FOUR  HUNDRED   FIFTY  MILLION   DOLLARS   payable  on  each
           Distribution Date in an amount equal to the aggregate amount, if any,
           payable to Noteholders of Class A-2 Notes on such  Distribution  Date
           from the  Principal  Distribution  Account in respect of principal on
           the Class A-2 Notes pursuant to Section 3.1 of the Indenture dated as
           of November 1, 2000 (as from time to time  amended,  supplemented  or
           otherwise  modified  and in effect,  the  "Indenture"),  between  the
           Issuer  and The Chase  Manhattan  Bank,  a New York  corporation,  as
           Indenture  Trustee  (in  such  capacity  the  "Indenture   Trustee");
           provided,  however,  that the entire unpaid  principal amount of this
           Note shall be due and  payable on the August 2001  Distribution  Date
           (the  "Class A-2 Final  Scheduled  Distribution  Date").  Capitalized
           terms used but not  defined  herein  are  defined in Article I of the
           Indenture, which also contains rules as to construction that shall be
           applicable herein.

                            The Issuer  shall pay  interest  on this Note at the
           rate per  annum  shown  above on each  Distribution  Date  until  the
           principal of this Note is paid or made available for payment,  on the
           principal   amount  of  this  Note   outstanding   on  the  preceding
           Distribution  Date (after  giving effect to all payments of principal
           made  on  the  preceding   Distribution  Date),  subject  to  certain
           limitations  contained in Section 3.1 of the  Indenture.  Interest on
           this Note will accrue for each  Distribution  Date from and including
           the previous  Distribution  Date on which interest has been paid (or,
           in the case of the initial  Distribution Date, from the Closing Date)
           to but excluding such Distribution Date. Interest will be computed on
           the basis of actual days elapsed and a 360-day year.  Such  principal
           of and interest on this Note shall be paid in the manner specified on
           the reverse hereof.

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

                            Reference is made to the further  provisions of this
           Note set  forth on the  reverse  hereof,  which  shall  have the same
           effect as though fully set forth on the face of this Note.

                            Unless the certificate of authentication  hereon has
           been  executed by the  Indenture  Trustee whose name appears below by
           manual  signature,  this Note shall not be  entitled  to any  benefit
           under the Indenture referred to on the reverse hereof, or be valid or
           obligatory for any purpose.

                REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

<PAGE>

A-2

                            IN WITNESS  WHEREOF,  the  Issuer  has  caused  this
           instrument to be signed,  manually or in facsimile, by its Authorized
           Officer, as of the date set forth below.

           Date:

                                            FORD CREDIT AUTO OWNER TRUST 2000-G

                                            By:    THE BANK OF NEW YORK,
                                            not in its individual capacity but
                                            solely as Owner Trustee of
                                            Ford Credit Auto Owner Trust 2000-G

                                         By:
                                                   Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

           This is one of the Class A-2 Notes  designated  above and referred to
           in the within-mentioned Indenture.

           Date:

                                        THE CHASE MANHATTAN BANK,
                                        not in its individual capacity but
                                        solely as Indenture Trustee

                                    By:
                                                   Authorized Officer

<PAGE>

                                 REVERSE OF NOTE

                            This Note is one of a duly authorized issue of Notes
           of the Issuer,  designated as its Class A-2 6.688% Asset Backed Notes
           (the "Class A-2 Notes")  which,  together with the Issuer's Class A-1
           6.569% Asset  Backed  Notes (the "Class A-1 Notes"),  Class A-3 6.67%
           Asset  Backed  Notes (the "Class A-3  Notes"),  Class A-4 6.62% Asset
           Backed  Notes (the "Class A-4  Notes"),  Class A-5 6.66% Asset Backed
           Notes (the "Class A-5 Notes" and,  together with the Class A-1 Notes,
           the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, the
           "Class A Notes") and Class B 6.92% Asset  Backed  Notes (the "Class B
           Notes" and, together with the Class A Notes, the "Notes"), are issued
           under  the   Indenture,   to  which   Indenture  and  all  indentures
           supplemental  thereto reference is hereby made for a statement of the
           respective  rights and  obligations  thereunder  of the  Issuer,  the
           Indenture  Trustee and the Noteholders.  The Notes are subject to all
           terms of the Indenture.

                            The  Class A-2  Notes  are and will be  equally  and
           ratably  secured by the  collateral  pledged as security  therefor as
           provided in the Indenture.  The Class A-2 Notes are  subordinated  in
           right of  payment  to the Class A-1 Notes and are  senior in right of
           payment  to the Class A-3 Notes,  the Class A-4 Notes,  the Class A-5
           Notes and the Class B Notes,  each as and to the extent  provided  in
           the Indenture.

                            Principal  of the Class A-2 Notes will be payable on
           each  Distribution  Date in an amount  described  on the face hereof.
           "Distribution Date" means the fifteenth day of each month, or, if any
           such day is not a Business  Day, the next  succeeding  Business  Day,
           commencing in December 2000.

                            As described on the face hereof,  the entire  unpaid
           principal  amount of this Note shall be due and  payable on the Class
           A-2 Final Scheduled Distribution Date. Notwithstanding the foregoing,
           the  entire  unpaid  principal  amount of the Notes  shall be due and
           payable on the date on which an Event of Default  shall have occurred
           and be continuing  and the Indenture  Trustee or the  Noteholders  of
           Notes  evidencing not less than a majority of the principal amount of
           the Class A Notes have declared the Notes to be  immediately  due and
           payable in the manner  provided in Section 5.2 of the Indenture.  All
           principal  payments  on the Class A-2 Notes shall be made pro rata to
           the Noteholders entitled thereto.

                            Payments   of   interest   on  this   Note  on  each
           Distribution  Date,  together with the  installment of principal,  if
           any, to the extent not in full payment of this Note, shall be made to
           the Person whose name  appears as the  Registered  Noteholder  of the
           Note (or one or more  Predecessor  Notes) on the Note  Register as of
           the close of business on each Record Date either by wire  transfer in
           immediately  available  funds, to the account of such Noteholder at a
           bank or other entity having appropriate  facilities therefor, if such
           Noteholder  shall have  provided  to the Note  Registrar  appropriate
           written  instructions  at least five (5) Business  Days prior to such
           Distribution  Date  and  such  Noteholder's  Notes  in the  aggregate
           evidence a denomination of not less than  $1,000,000,  or, if not, by
           check mailed first-class  postage prepaid to such Person's address as
           it appears on the Note Register on such Record Date;  provided  that,
           unless Definitive Notes have been issued to Note Owners, with respect
           to Notes  registered on the Record Date in the name of the nominee of
           the  Clearing  Agency  (initially,  such  nominee  to be Cede & Co.),
           payments will be made by wire transfer in immediately available funds
           to the account designated by such nominee. Such payments will be made
           without  requiring  that  this  Note be  submitted  for  notation  of
           payment.  Any reduction in the principal  amount of this Note (or any
           one or more  Predecessor  Notes) effected by any payments made on any
           Distribution  Date shall be binding  upon all future  Noteholders  of
           this Note and of any Note  issued upon the  registration  of transfer
           hereof or in exchange hereof or in lieu hereof,  whether or not noted
           hereon.  If funds are  expected to be  available,  as provided in the
           Indenture, for payment in full of the then remaining unpaid principal
           amount  of this  Note on a  Distribution  Date,  then  the  Indenture
           Trustee,  in the name of and on behalf of the Issuer, will notify the
           Person who was the Registered Noteholder hereof as of the Record Date
           preceding such  Distribution  Date by notice mailed or transmitted by
           facsimile  prior to such  Distribution  Date, and the amount then due
           and payable shall be payable only upon  presentation and surrender of
           this Note at the Indenture Trustee's principal Corporate Trust Office
           or at the office of the Indenture  Trustee's agent appointed for such
           purposes located in The City of New York.

                            The   Issuer   shall   pay   interest   on   overdue
           installments of interest at the Class A-2 Rate to the extent lawful.

                            As provided in the Indenture,  the Class A Notes and
           the Class B Notes may be redeemed,  in whole but not in part,  in the
           manner and to the extent  described in the Indenture and the Sale and
           Servicing Agreement.

                            As provided in the Indenture, and subject to certain
           limitations  set  forth  therein,  the  transfer  of this Note may be
           registered  on the Note  Register  upon  surrender  of this  Note for
           registration  of transfer at the office or agency  designated  by the
           Issuer pursuant to the Indenture, duly endorsed by, or accompanied by
           a  written  instrument  of  transfer  in  form  satisfactory  to  the
           Indenture  Trustee duly  executed by, the  Noteholder  hereof or such
           Noteholder's attorney duly authorized in writing, with such signature
           guaranteed  by  an  "eligible  guarantor   institution"  meeting  the
           requirements  of the Note  Registrar,  and  thereupon one or more new
           Notes of the same Class in authorized  denominations  and in the same
           aggregate   principal   amount  will  be  issued  to  the  designated
           transferee or transferees.  No service charge will be charged for any
           registration of transfer or exchange of this Note, but the transferor
           may be  required  to pay a sum  sufficient  to cover any tax or other
           governmental  charge that may be imposed in connection  with any such
           registration of transfer or exchange.

                            Each  Noteholder or Note Owner, by its acceptance of
           a Note or, in the case of a Note Owner,  a  beneficial  interest in a
           Note, covenants and agrees that no recourse may be taken, directly or
           indirectly,  with respect to the obligations of the Issuer, the Owner
           Trustee or the Indenture  Trustee on the Notes or under the Indenture
           or  any   certificate  or  other  writing   delivered  in  connection
           therewith,  against (i) the Indenture  Trustee or the Owner  Trustee,
           each in its  individual  capacity,  (ii) any  owner  of a  beneficial
           interest  in the  Issuer or (iii) any  partner,  owner,  beneficiary,
           agent, officer,  director or employee of the Indenture Trustee or the
           Owner  Trustee,  each in its  individual  capacity,  any  holder of a
           beneficial interest in the Issuer, the Owner Trustee or the Indenture
           Trustee or of any successor or assign of the Indenture Trustee or the
           Owner Trustee,  each in its individual  capacity,  except as any such
           Person may have  expressly  agreed and except that any such  partner,
           owner or beneficiary shall be fully liable, to the extent provided by
           applicable  law,  for any  unpaid  consideration  for  stock,  unpaid
           capital  contribution  for  stock,  unpaid  capital  contribution  or
           failure to pay any installment or call owing to such entity.

                            Each  Noteholder  or Note Owner,  by acceptance of a
           Note or, in the case of a Note  Owner,  a  beneficial  interest  in a
           Note, covenants and agrees by accepting the benefits of the Indenture
           that such  Noteholder  or Note Owner  will not at any time  institute
           against the Seller, the General Partner or the Issuer, or join in any
           institution against the Seller, the General Partner or the Issuer of,
           any   bankruptcy,   reorganization,    arrangement,   insolvency   or
           liquidation  proceedings  under any  United  States  federal or State
           bankruptcy or similar law in connection with any obligations relating
           to the Notes, the Indenture or the other Basic Documents.

                            The Issuer has entered into the  Indenture  and this
           Note is issued with the intention that, for federal,  State and local
           income,  and  franchise  tax  purposes,  the Notes  will  qualify  as
           indebtedness  of the Issuer  secured by the  Indenture  Trust Estate.
           Each Noteholder,  by its acceptance of a Note (and each Note Owner by
           its acceptance of a beneficial interest in a Note), will be deemed to
           agree to treat the Notes for federal,  State and local income, single
           business and franchise tax purposes as indebtedness of the Issuer.

                            Prior to the due  presentment  for  registration  of
           transfer of this Note,  the  Issuer,  the  Indenture  Trustee and any
           agent of the Issuer or the Indenture  Trustee may treat the Person in
           whose  name this Note (as of the day of  determination  or as of such
           other date as may be specified in the Indenture) is registered as the
           owner hereof for all  purposes,  whether or not this Note be overdue,
           and none of the Issuer, the Indenture Trustee or any such agent shall
           be affected by notice to the contrary.

                            The  Indenture  permits,   with  certain  exceptions
           requiring the consent of all Noteholders  affected thereby as therein
           provided,  the amendment  thereof and the  modification of the rights
           and obligations of the Issuer and the rights of the Noteholders under
           the  Indenture  at any time by the  Issuer  with the  consent  of the
           Noteholders  of Notes  evidencing  not less  than a  majority  of the
           principal  amount of the Controlling  Note Class.  The Indenture also
           permits the  Indenture  Trustee to amend or waive  certain  terms and
           conditions  set forth in the  Indenture  without  the  consent of the
           Noteholders  provided certain conditions are satisfied.  In addition,
           the Indenture contains provisions permitting the Noteholders of Notes
           evidencing specified percentages of the principal amount of the Notes
           Outstanding  or of the  Controlling  Note  Class,  on  behalf  of all
           Noteholders,   to  waive   compliance  by  the  Issuer  with  certain
           provisions  of the  Indenture  and certain  past  defaults  under the
           Indenture and their  consequences.  Any such consent or waiver by the
           Noteholder of this Note (or any one or more Predecessor  Notes) shall
           be conclusive  and binding upon such  Noteholder  and upon all future
           Noteholders of this Note and of any Note issued upon the registration
           of transfer hereof or in exchange hereof or in lieu hereof whether or
           not notation of such consent or waiver is made upon this Note.

                            The term  "Issuer",  as used in this Note,  includes
           any successor to the Issuer under the Indenture.

                            The  Issuer is  permitted  by the  Indenture,  under
           certain circumstances, to merge or consolidate, subject to the rights
           of the Indenture Trustee and the Noteholders under the Indenture.

                            The Notes are issuable  only in  registered  form in
           denominations  as  provided  in the  Indenture,  subject  to  certain
           limitations therein set forth.

                            This Note and the  Indenture  shall be governed  by,
           and construed in  accordance  with the laws of the State of New York,
           without reference to its conflicts of law provisions.

                            No  reference  herein  to  the  Indenture,   and  no
           provision of this Note or of the Indenture, shall alter or impair the
           obligation of the Issuer, which is absolute and unconditional, to pay
           the  principal of and  interest on this Note at the times,  place and
           rate, and in the coin or currency herein prescribed.

                            Anything  herein  to the  contrary  notwithstanding,
           except as  expressly  provided  in the Basic  Documents,  none of The
           Chase  Manhattan  Bank, in its individual  capacity,  The Bank of New
           York, in its individual capacity,  any owner of a beneficial interest
           in the Issuer,  or any of their respective  partners,  beneficiaries,
           agents, officers, directors, employees or successors or assigns shall
           be  personally  liable for, nor shall  recourse be had to any of them
           for,  the  payment  of  principal  or of  interest  on  this  Note or
           performance  of,  or  omission  to  perform,  any of  the  covenants,
           obligations  or  indemnifications  contained  in the  Indenture.  The
           Noteholder  of this Note,  by his  acceptance  hereof,  agrees  that,
           except as expressly  provided in the Basic Documents,  in the case of
           an Event of Default under the Indenture, the Noteholder shall have no
           claim against any of the foregoing for any deficiency,  loss or claim
           therefrom;  provided, however, that nothing contained herein shall be
           taken to prevent recourse to, and enforcement  against, the assets of
           the Issuer for any and all liabilities,  obligations and undertakings
           contained in the Indenture or in this Note.

<PAGE>

A-2

                                   ASSIGNMENT

    Social Security or taxpayer I.D. or other identifying number of assignee:

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

                         (name and address of assignee)

           the within  Note and all rights  thereunder,  and hereby  irrevocably
           constitutes  and appoints  _________________,  attorney,  to transfer
           said Note on the books kept for registration thereof, with full power
           of substitution in the premises.

           Dated:                                                           */
                           Signature Guaranteed

                                                                            */

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

<PAGE>

A-3

                                                                     EXHIBIT A-3

                             FORM OF CLASS A-3 NOTE

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

           THE  PRINCIPAL OF THIS NOTE IS PAYABLE IN  INSTALLMENTS  AS SET FORTH
           HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT
           ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

           REGISTERED                                            $1,455,000,000

           No. R-1                                         CUSIP NO.34527R EX 7

                       FORD CREDIT AUTO OWNER TRUST 2000-G

                       CLASS A-3 6.67%% ASSET BACKED NOTES

                            Ford  Credit  Auto Owner  Trust  2000-G,  a business
           trust  organized and existing under the laws of the State of Delaware
           (herein  referred to as the  "Issuer"),  for value  received,  hereby
           promises to pay to CEDE & CO., or registered  assigns,  the principal
           sum of ONE BILLION FOUR HUNDRED FIFTY-FIVE MILLION DOLLARS payable on
           each Distribution Date in an amount equal to the aggregate amount, if
           any,  payable to Noteholders of Class A-3 Notes on such  Distribution
           Date from the Principal  Distribution Account in respect of principal
           on the Class A-3 Notes pursuant to Section 3.1 of the Indenture dated
           as of November 1, 2000 (as from time to time amended, supplemented or
           otherwise  modified  and in effect,  the  "Indenture"),  between  the
           Issuer  and The Chase  Manhattan  Bank,  a New York  corporation,  as
           Indenture  Trustee  (in  such  capacity  the  "Indenture   Trustee");
           provided,  however,  that the entire unpaid  principal amount of this
           Note shall be due and  payable on the April  2003  Distribution  Date
           (the  "Class A-3 Final  Scheduled  Distribution  Date").  Capitalized
           terms used but not  defined  herein  are  defined in Article I of the
           Indenture, which also contains rules as to construction that shall be
           applicable herein.

                            The Issuer  shall pay  interest  on this Note at the
           rate per  annum  shown  above on each  Distribution  Date  until  the
           principal of this Note is paid or made available for payment,  on the
           principal   amount  of  this  Note   outstanding   on  the  preceding
           Distribution  Date (after  giving effect to all payments of principal
           made  on  the  preceding   Distribution  Date),  subject  to  certain
           limitations  contained in Section 3.1 of the  Indenture.  Interest on
           this Note will accrue for each  Distribution  Date from and including
           the fifteenth day of the calendar  month  immediately  preceding such
           Distribution Date (or, in the case of the initial  Distribution Date,
           from the Closing  Date) to but  excluding  the  fifteenth  day of the
           following calendar month. Interest will be computed on the basis of a
           360-day year of twelve 30-day months.  Such principal of and interest
           on this Note shall be paid in the  manner  specified  on the  reverse
           hereof.

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

                            Reference is made to the further  provisions of this
           Note set  forth on the  reverse  hereof,  which  shall  have the same
           effect as though fully set forth on the face of this Note.

                            Unless the certificate of authentication  hereon has
           been  executed by the  Indenture  Trustee whose name appears below by
           manual  signature,  this Note shall not be  entitled  to any  benefit
           under the Indenture referred to on the reverse hereof, or be valid or
           obligatory for any purpose.

                REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

<PAGE>

A-3

                            IN WITNESS  WHEREOF,  the  Issuer  has  caused  this
           instrument to be signed,  manually or in facsimile, by its Authorized
           Officer, as of the date set forth below.

           Date:

                                            FORD CREDIT AUTO OWNER TRUST 2000-G

                                            By:    THE BANK OF NEW YORK,
                                            not in its individual capacity but
                                            solely as Owner Trustee of
                                            Ford Credit Auto Owner Trust 2000-G

                                         By:

                                                   Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

           This is one of the Class A-3 Notes  designated  above and referred to
           in the within-mentioned Indenture.

           Date:

                                        THE CHASE MANHATTAN BANK,
                                        not in its individual capacity but
                                        solely as Indenture Trustee

                                    By:

                                                   Authorized Officer

<PAGE>

                                 REVERSE OF NOTE

                            This Note is one of a duly authorized issue of Notes
           of the Issuer,  designated  as its Class A-3 6.67% Asset Backed Notes
           (the "Class A-3 Notes")  which,  together with the Issuer's Class A-1
           6.569% Asset  Backed Notes (the "Class A-1 Notes"),  Class A-2 6.688%
           Asset  Backed  Notes (the "Class A-2  Notes"),  Class A-4 6.62% Asset
           Backed  Notes (the "Class A-4  Notes"),  Class A-5 6.66% Asset Backed
           Notes (the "Class A-5 Notes" and,  together with the Class A-1 Notes,
           the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, the
           "Class A Notes") and Class B 6.92% Asset  Backed  Notes (the "Class B
           Notes" and, together with the Class A Notes, the "Notes"), are issued
           under  the   Indenture,   to  which   Indenture  and  all  indentures
           supplemental  thereto reference is hereby made for a statement of the
           respective  rights and  obligations  thereunder  of the  Issuer,  the
           Indenture  Trustee and the Noteholders.  The Notes are subject to all
           terms of the Indenture.

                            The  Class A-3  Notes  are and will be  equally  and
           ratably  secured by the  collateral  pledged as security  therefor as
           provided in the Indenture.  The Class A-3 Notes are  subordinated  in
           right of  payment  to the Class A-1 Notes and the Class A-2 Notes and
           are senior in right of payment to the Class A-4 Notes,  the Class A-5
           Notes and the Class B Notes,  each as and to the extent  provided  in
           the Indenture.

                            Principal  of the Class A-3 Notes will be payable on
           each  Distribution  Date in an amount  described  on the face hereof.
           "Distribution Date" means the fifteenth day of each month, or, if any
           such day is not a Business  Day, the next  succeeding  Business  Day,
           commencing in December 2000.

                            As described on the face hereof,  the entire  unpaid
           principal  amount of this Note shall be due and  payable on the Class
           A-3 Final Scheduled Distribution Date. Notwithstanding the foregoing,
           the  entire  unpaid  principal  amount of the Notes  shall be due and
           payable on the date on which an Event of Default  shall have occurred
           and be continuing  and the Indenture  Trustee or the  Noteholders  of
           Notes  evidencing not less than a majority of the principal amount of
           the Class A Notes have declared the Notes to be  immediately  due and
           payable in the manner  provided in Section 5.2 of the Indenture.  All
           principal  payments  on the Class A-3 Notes shall be made pro rata to
           the Noteholders entitled thereto.

                            Payments   of   interest   on  this   Note  on  each
           Distribution  Date,  together with the  installment of principal,  if
           any, to the extent not in full payment of this Note, shall be made to
           the Person whose name  appears as the  Registered  Noteholder  of the
           Note (or one or more  Predecessor  Notes) on the Note  Register as of
           the close of business on each Record Date either by wire  transfer in
           immediately  available  funds, to the account of such Noteholder at a
           bank or other entity having appropriate  facilities therefor, if such
           Noteholder  shall have  provided  to the Note  Registrar  appropriate
           written  instructions  at least five (5) Business  Days prior to such
           Distribution  Date  and  such  Noteholder's  Notes  in the  aggregate
           evidence a denomination of not less than  $1,000,000,  or, if not, by
           check mailed first-class  postage prepaid to such Person's address as
           it appears on the Note Register on such Record Date;  provided  that,
           unless Definitive Notes have been issued to Note Owners, with respect
           to Notes  registered on the Record Date in the name of the nominee of
           the  Clearing  Agency  (initially,  such  nominee  to be Cede & Co.),
           payments will be made by wire transfer in immediately available funds
           to the account designated by such nominee. Such payments will be made
           without  requiring  that  this  Note be  submitted  for  notation  of
           payment.  Any reduction in the principal  amount of this Note (or any
           one or more  Predecessor  Notes) effected by any payments made on any
           Distribution  Date shall be binding  upon all future  Noteholders  of
           this Note and of any Note  issued upon the  registration  of transfer
           hereof or in exchange hereof or in lieu hereof,  whether or not noted
           hereon.  If funds are  expected to be  available,  as provided in the
           Indenture, for payment in full of the then remaining unpaid principal
           amount  of this  Note on a  Distribution  Date,  then  the  Indenture
           Trustee,  in the name of and on behalf of the Issuer, will notify the
           Person who was the Registered Noteholder hereof as of the Record Date
           preceding such  Distribution  Date by notice mailed or transmitted by
           facsimile  prior to such  Distribution  Date, and the amount then due
           and payable shall be payable only upon  presentation and surrender of
           this Note at the Indenture Trustee's principal Corporate Trust Office
           or at the office of the Indenture  Trustee's agent appointed for such
           purposes located in The City of New York.

                            The   Issuer   shall   pay   interest   on   overdue
           installments of interest at the Class A-3 Rate to the extent lawful.

                            As provided in the Indenture,  the Class A Notes and
           the Class B Notes may be redeemed,  in whole but not in part,  in the
           manner and to the extent  described in the Indenture and the Sale and
           Servicing Agreement.

                            The   transfer  of  this  Note  is  subject  to  the
           restrictions  on  transfer  specified  on the face  hereof and to the
           other  limitations  set  forth  in  the  Indenture.  Subject  to  the
           satisfaction of such  restrictions and  limitations,  the transfer of
           this Note may be registered  on the Note  Register upon  surrender of
           this  Note for  registration  of  transfer  at the  office  or agency
           designated by the Issuer pursuant to the Indenture, duly endorsed by,
           or  accompanied   by  a  written   instrument  of  transfer  in  form
           satisfactory   to  the  Indenture   Trustee  duly  executed  by,  the
           Noteholder  hereof or such  Noteholder's  attorney duly authorized in
           writing,  with such  signature  guaranteed by an "eligible  guarantor
           institution"  meeting the  requirements  of the Note  Registrar,  and
           thereupon  one or more  new  Notes of the  same  Class in  authorized
           denominations  and in the same  aggregate  principal  amount  will be
           issued to the designated transferee or transferees. No service charge
           will be charged for any  registration of transfer or exchange of this
           Note,  but the  transferor may be required to pay a sum sufficient to
           cover any tax or other  governmental  charge  that may be  imposed in
           connection with any such registration of transfer or exchange.

                            Each  Noteholder or Note Owner, by its acceptance of
           a Note or, in the case of a Note Owner,  a  beneficial  interest in a
           Note, covenants and agrees that no recourse may be taken, directly or
           indirectly,  with respect to the obligations of the Issuer, the Owner
           Trustee or the Indenture  Trustee on the Notes or under the Indenture
           or  any   certificate  or  other  writing   delivered  in  connection
           therewith,  against (i) the Indenture  Trustee or the Owner  Trustee,
           each in its  individual  capacity,  (ii) any  owner  of a  beneficial
           interest  in the  Issuer or (iii) any  partner,  owner,  beneficiary,
           agent, officer,  director or employee of the Indenture Trustee or the
           Owner  Trustee,  each in its  individual  capacity,  any  holder of a
           beneficial interest in the Issuer, the Owner Trustee or the Indenture
           Trustee or of any successor or assign of the Indenture Trustee or the
           Owner Trustee,  each in its individual  capacity,  except as any such
           Person may have  expressly  agreed and except that any such  partner,
           owner or beneficiary shall be fully liable, to the extent provided by
           applicable  law,  for any  unpaid  consideration  for  stock,  unpaid
           capital  contribution  for  stock,  unpaid  capital  contribution  or
           failure to pay any installment or call owing to such entity.

                            Each  Noteholder  or Note Owner,  by acceptance of a
           Note or, in the case of a Note  Owner,  a  beneficial  interest  in a
           Note, covenants and agrees by accepting the benefits of the Indenture
           that such  Noteholder  or Note Owner  will not at any time  institute
           against the Seller, the General Partner or the Issuer, or join in any
           institution against the Seller, the General Partner or the Issuer of,
           any   bankruptcy,   reorganization,    arrangement,   insolvency   or
           liquidation  proceedings  under any  United  States  federal or State
           bankruptcy or similar law in connection with any obligations relating
           to the Notes, the Indenture or the other Basic Documents.

                            The Issuer has entered into the  Indenture  and this
           Note is issued with the intention that, for federal,  State and local
           income,  and  franchise  tax  purposes,  the Notes  will  qualify  as
           indebtedness  of the Issuer  secured by the  Indenture  Trust Estate.
           Each Noteholder,  by its acceptance of a Note (and each Note Owner by
           its acceptance of a beneficial interest in a Note), will be deemed to
           agree to treat the Notes for federal,  State and local income, single
           business and franchise tax purposes as indebtedness of the Issuer.

                            Prior to the due  presentment  for  registration  of
           transfer of this Note,  the  Issuer,  the  Indenture  Trustee and any
           agent of the Issuer or the Indenture  Trustee may treat the Person in
           whose  name this Note (as of the day of  determination  or as of such
           other date as may be specified in the Indenture) is registered as the
           owner hereof for all  purposes,  whether or not this Note be overdue,
           and none of the Issuer, the Indenture Trustee or any such agent shall
           be affected by notice to the contrary.

                            The  Indenture  permits,   with  certain  exceptions
           requiring the consent of all Noteholders  affected thereby as therein
           provided,  the amendment  thereof and the  modification of the rights
           and obligations of the Issuer and the rights of the Noteholders under
           the  Indenture  at any time by the  Issuer  with the  consent  of the
           Noteholders  of Notes  evidencing  not less  than a  majority  of the
           principal  amount of the Controlling  Note Class.  The Indenture also
           permits the  Indenture  Trustee to amend or waive  certain  terms and
           conditions  set forth in the  Indenture  without  the  consent of the
           Noteholders  provided certain conditions are satisfied.  In addition,
           the Indenture contains provisions permitting the Noteholders of Notes
           evidencing specified percentages of the principal amount of the Notes
           Outstanding  or of the  Controlling  Note  Class,  on  behalf  of all
           Noteholders,   to  waive   compliance  by  the  Issuer  with  certain
           provisions  of the  Indenture  and certain  past  defaults  under the
           Indenture and their  consequences.  Any such consent or waiver by the
           Noteholder of this Note (or any one or more Predecessor  Notes) shall
           be conclusive  and binding upon such  Noteholder  and upon all future
           Noteholders of this Note and of any Note issued upon the registration
           of transfer hereof or in exchange hereof or in lieu hereof whether or
           not notation of such consent or waiver is made upon this Note.

                            The term  "Issuer",  as used in this Note,  includes
           any successor to the Issuer under the Indenture.

                            The  Issuer is  permitted  by the  Indenture,  under
           certain circumstances, to merge or consolidate, subject to the rights
           of the Indenture Trustee and the Noteholders under the Indenture.

                            The Notes are issuable  only in  registered  form in
           denominations  as  provided  in the  Indenture,  subject  to  certain
           limitations therein set forth.

                            This Note and the  Indenture  shall be governed  by,
           and construed in  accordance  with the laws of the State of New York,
           without reference to its conflicts of law provisions.

                            No  reference  herein  to  the  Indenture,   and  no
           provision of this Note or of the Indenture, shall alter or impair the
           obligation of the Issuer, which is absolute and unconditional, to pay
           the  principal of and  interest on this Note at the times,  place and
           rate, and in the coin or currency herein prescribed.

                            Anything  herein  to the  contrary  notwithstanding,
           except as  expressly  provided  in the Basic  Documents,  none of The
           Chase  Manhattan  Bank, in its individual  capacity,  The Bank of New
           York, in its individual capacity,  any owner of a beneficial interest
           in the Issuer,  or any of their respective  partners,  beneficiaries,
           agents, officers, directors, employees or successors or assigns shall
           be  personally  liable for, nor shall  recourse be had to any of them
           for,  the  payment  of  principal  or of  interest  on  this  Note or
           performance  of,  or  omission  to  perform,  any of  the  covenants,
           obligations  or  indemnifications  contained  in the  Indenture.  The
           Noteholder  of this Note,  by his  acceptance  hereof,  agrees  that,
           except as expressly  provided in the Basic Documents,  in the case of
           an Event of Default under the Indenture, the Noteholder shall have no
           claim against any of the foregoing for any deficiency,  loss or claim
           therefrom;  provided, however, that nothing contained herein shall be
           taken to prevent recourse to, and enforcement  against, the assets of
           the Issuer for any and all liabilities,  obligations and undertakings
           contained in the Indenture or in this Note.

<PAGE>

A-3

                                   ASSIGNMENT

    Social Security or taxpayer I.D. or other identifying number of assignee:

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

                         (name and address of assignee)

           the within  Note and all rights  thereunder,  and hereby  irrevocably
           constitutes  and appoints  _________________,  attorney,  to transfer
           said Note on the books kept for registration thereof, with full power
           of substitution in the premises.

           Dated:                                                           */
                           Signature Guaranteed

                                                                            */

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

<PAGE>

A-4

                                                                     EXHIBIT A-4

                             FORM OF CLASS A-4 NOTE

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

           THE  PRINCIPAL OF THIS NOTE IS PAYABLE IN  INSTALLMENTS  AS SET FORTH
           HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT
           ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

           REGISTERED                                            $1,118,000,000

           No. R-1                                         CUSIP NO.34527R EY 5

                       FORD CREDIT AUTO OWNER TRUST 2000-G

                       CLASS A-4 6.62% ASSET BACKED NOTES

                            Ford  Credit  Auto Owner  Trust  2000-G,  a business
           trust  organized and existing under the laws of the State of Delaware
           (herein  referred to as the  "Issuer"),  for value  received,  hereby
           promises to pay to CEDE & CO., or registered  assigns,  the principal
           sum of ONE BILLION ONE HUNDRED  EIGHTEEN  MILLION  DOLLARS payable on
           each Distribution Date in an amount equal to the aggregate amount, if
           any,  payable to Noteholders of Class A-4 Notes on such  Distribution
           Date from the Principal  Distribution Account in respect of principal
           on the Class A-4 Notes pursuant to Section 3.1 of the Indenture dated
           as of November 1, 2000 (as from time to time amended, supplemented or
           otherwise  modified  and in effect,  the  "Indenture"),  between  the
           Issuer  and The Chase  Manhattan  Bank,  a New York  corporation,  as
           Indenture  Trustee  (in  such  capacity  the  "Indenture   Trustee");
           provided,  however,  that the entire unpaid  principal amount of this
           Note shall be due and payable on the July 2004 Distribution Date (the
           "Class A-4 Final Scheduled  Distribution  Date").  Capitalized  terms
           used  but  not  defined  herein  are  defined  in  Article  I of  the
           Indenture, which also contains rules as to construction that shall be
           applicable herein.

                            The Issuer  shall pay  interest  on this Note at the
           rate per  annum  shown  above on each  Distribution  Date  until  the
           principal of this Note is paid or made available for payment,  on the
           principal   amount  of  this  Note   outstanding   on  the  preceding
           Distribution  Date (after  giving effect to all payments of principal
           made  on  the  preceding   Distribution  Date),  subject  to  certain
           limitations  contained in Section 3.1 of the  Indenture.  Interest on
           this Note will accrue for each  Distribution  Date from and including
           the fifteenth day of the calendar  month  immediately  preceding such
           Distribution Date (or, in the case of the initial  Distribution Date,
           from the Closing  Date) to but  excluding  the  fifteenth  day of the
           following calendar month. Interest will be computed on the basis of a
           360-day year of twelve 30-day months.  Such principal of and interest
           on this Note shall be paid in the  manner  specified  on the  reverse
           hereof.

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

                            Reference is made to the further  provisions of this
           Note set  forth on the  reverse  hereof,  which  shall  have the same
           effect as though fully set forth on the face of this Note.

                            Unless the certificate of authentication  hereon has
           been  executed by the  Indenture  Trustee whose name appears below by
           manual  signature,  this Note shall not be  entitled  to any  benefit
           under the Indenture referred to on the reverse hereof, or be valid or
           obligatory for any purpose.

                REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

<PAGE>

A-4

                            IN WITNESS  WHEREOF,  the  Issuer  has  caused  this
           instrument to be signed,  manually or in facsimile, by its Authorized
           Officer, as of the date set forth below.

           Date:

                                            FORD CREDIT AUTO OWNER TRUST 2000-G

                                            By:    THE BANK OF NEW YORK,
                                            not in its individual capacity but
                                            solely as Owner Trustee of
                                            Ford Credit Auto Owner Trust 2000-G

                                         By:
                                                   Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

           This is one of the Class A-4 Notes  designated  above and referred to
           in the within-mentioned Indenture.

           Date:

                                      THE CHASE MANHATTAN BANK,
                                      not in its individual capacity but
                                      solely as Indenture Trustee

                                    By:
                                                   Authorized Officer

<PAGE>

                                 REVERSE OF NOTE

                            This Note is one of a duly authorized issue of Notes
           of the Issuer,  designated  as its Class A-4 6.62% Asset Backed Notes
           (the "Class A-4 Notes")  which,  together with the Issuer's Class A-1
           6.569% Asset  Backed Notes (the "Class A-1 Notes"),  Class A-2 6.688%
           Asset  Backed  Notes (the "Class A-2  Notes"),  Class A-3 6.67% Asset
           Backed  Notes (the "Class A-3  Notes"),  Class A-5 6.66% Asset Backed
           Notes (the "Class A-5 Notes" and,  together with the Class A-1 Notes,
           the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, the
           "Class A Notes") and Class B 6.92% Asset  Backed  Notes (the "Class B
           Notes" and, together with the Class A Notes, the "Notes"), are issued
           under  the   Indenture,   to  which   Indenture  and  all  indentures
           supplemental  thereto reference is hereby made for a statement of the
           respective  rights and  obligations  thereunder  of the  Issuer,  the
           Indenture  Trustee and the Noteholders.  The Notes are subject to all
           terms of the Indenture.

                            The  Class A-4  Notes  are and will be  equally  and
           ratably  secured by the  collateral  pledged as security  therefor as
           provided in the Indenture.  The Class A-4 Notes are  subordinated  in
           right of payment to the Class A-1 Notes,  the Class A-2 Notes and the
           Class A-3 Notes and are  senior in right of  payment to the Class A-5
           Notes and the Class B Notes,  each as and to the extent  provided  in
           the Indenture.

                            Principal  of the Class A-4 Notes will be payable on
           each  Distribution  Date in an amount  described  on the face hereof.
           "Distribution Date" means the fifteenth day of each month, or, if any
           such day is not a Business  Day, the next  succeeding  Business  Day,
           commencing in December 2000.

                            As described on the face hereof,  the entire  unpaid
           principal  amount of this Note shall be due and  payable on the Class
           A-4 Final Scheduled Distribution Date. Notwithstanding the foregoing,
           the  entire  unpaid  principal  amount of the Notes  shall be due and
           payable on the date on which an Event of Default  shall have occurred
           and be continuing  and the Indenture  Trustee or the  Noteholders  of
           Notes  evidencing not less than a majority of the principal amount of
           the Class A Notes have declared the Notes to be  immediately  due and
           payable in the manner  provided in Section 5.2 of the Indenture.  All
           principal  payments  on the Class A-4 Notes shall be made pro rata to
           the Noteholders entitled thereto.

                            Payments   of   interest   on  this   Note  on  each
           Distribution  Date,  together with the  installment of principal,  if
           any, to the extent not in full payment of this Note, shall be made to
           the Person whose name  appears as the  Registered  Noteholder  of the
           Note (or one or more  Predecessor  Notes) on the Note  Register as of
           the close of business on each Record Date either by wire  transfer in
           immediately  available  funds, to the account of such Noteholder at a
           bank or other entity having appropriate  facilities therefor, if such
           Noteholder  shall have  provided  to the Note  Registrar  appropriate
           written  instructions  at least five (5) Business  Days prior to such
           Distribution  Date  and  such  Noteholder's  Notes  in the  aggregate
           evidence a denomination of not less than  $1,000,000,  or, if not, by
           check mailed first-class  postage prepaid to such Person's address as
           it appears on the Note Register on such Record Date;  provided  that,
           unless Definitive Notes have been issued to Note Owners, with respect
           to Notes  registered on the Record Date in the name of the nominee of
           the  Clearing  Agency  (initially,  such  nominee  to be Cede & Co.),
           payments will be made by wire transfer in immediately available funds
           to the account designated by such nominee. Such payments will be made
           without  requiring  that  this  Note be  submitted  for  notation  of
           payment.  Any reduction in the principal  amount of this Note (or any
           one or more  Predecessor  Notes) effected by any payments made on any
           Distribution  Date shall be binding  upon all future  Noteholders  of
           this Note and of any Note  issued upon the  registration  of transfer
           hereof or in exchange hereof or in lieu hereof,  whether or not noted
           hereon.  If funds are  expected to be  available,  as provided in the
           Indenture, for payment in full of the then remaining unpaid principal
           amount  of this  Note on a  Distribution  Date,  then  the  Indenture
           Trustee,  in the name of and on behalf of the Issuer, will notify the
           Person who was the Registered Noteholder hereof as of the Record Date
           preceding such  Distribution  Date by notice mailed or transmitted by
           facsimile  prior to such  Distribution  Date, and the amount then due
           and payable shall be payable only upon  presentation and surrender of
           this Note at the Indenture Trustee's principal Corporate Trust Office
           or at the office of the Indenture  Trustee's agent appointed for such
           purposes located in The City of New York.

                            The   Issuer   shall   pay   interest   on   overdue
           installments of interest at the Class A-4 Rate to the extent lawful.

                            As provided in the Indenture,  the Class A Notes and
           the Class B Notes may be redeemed,  in whole but not in part,  in the
           manner and to the extent  described in the Indenture and the Sale and
           Servicing Agreement.

                            The   transfer  of  this  Note  is  subject  to  the
           restrictions  on  transfer  specified  on the face  hereof and to the
           other  limitations  set  forth  in  the  Indenture.  Subject  to  the
           satisfaction of such  restrictions and  limitations,  the transfer of
           this Note may be registered  on the Note  Register upon  surrender of
           this  Note for  registration  of  transfer  at the  office  or agency
           designated by the Issuer pursuant to the Indenture, duly endorsed by,
           or  accompanied   by  a  written   instrument  of  transfer  in  form
           satisfactory   to  the  Indenture   Trustee  duly  executed  by,  the
           Noteholder  hereof or such  Noteholder's  attorney duly authorized in
           writing,  with such  signature  guaranteed by an "eligible  guarantor
           institution"  meeting the  requirements  of the Note  Registrar,  and
           thereupon  one or more  new  Notes of the  same  Class in  authorized
           denominations  and in the same  aggregate  principal  amount  will be
           issued to the designated transferee or transferees. No service charge
           will be charged for any  registration of transfer or exchange of this
           Note,  but the  transferor may be required to pay a sum sufficient to
           cover any tax or other  governmental  charge  that may be  imposed in
           connection with any such registration of transfer or exchange.

                            Each  Noteholder or Note Owner, by its acceptance of
           a Note or, in the case of a Note Owner,  a  beneficial  interest in a
           Note, covenants and agrees that no recourse may be taken, directly or
           indirectly,  with respect to the obligations of the Issuer, the Owner
           Trustee or the Indenture  Trustee on the Notes or under the Indenture
           or  any   certificate  or  other  writing   delivered  in  connection
           therewith,  against (i) the Indenture  Trustee or the Owner  Trustee,
           each in its  individual  capacity,  (ii) any  owner  of a  beneficial
           interest  in the  Issuer or (iii) any  partner,  owner,  beneficiary,
           agent, officer,  director or employee of the Indenture Trustee or the
           Owner  Trustee,  each in its  individual  capacity,  any  holder of a
           beneficial interest in the Issuer, the Owner Trustee or the Indenture
           Trustee or of any successor or assign of the Indenture Trustee or the
           Owner Trustee,  each in its individual  capacity,  except as any such
           Person may have  expressly  agreed and except that any such  partner,
           owner or beneficiary shall be fully liable, to the extent provided by
           applicable  law,  for any  unpaid  consideration  for  stock,  unpaid
           capital  contribution  for  stock,  unpaid  capital  contribution  or
           failure to pay any installment or call owing to such entity.

                            Each  Noteholder  or Note Owner,  by acceptance of a
           Note or, in the case of a Note  Owner,  a  beneficial  interest  in a
           Note, covenants and agrees by accepting the benefits of the Indenture
           that such  Noteholder  or Note Owner  will not at any time  institute
           against the Seller, the General Partner or the Issuer, or join in any
           institution against the Seller, the General Partner or the Issuer of,
           any   bankruptcy,   reorganization,    arrangement,   insolvency   or
           liquidation  proceedings  under any  United  States  federal or State
           bankruptcy or similar law in connection with any obligations relating
           to the Notes, the Indenture or the other Basic Documents.

                            The Issuer has entered into the  Indenture  and this
           Note is issued with the intention that, for federal,  State and local
           income,  and  franchise  tax  purposes,  the Notes  will  qualify  as
           indebtedness  of the Issuer  secured by the  Indenture  Trust Estate.
           Each Noteholder,  by its acceptance of a Note (and each Note Owner by
           its acceptance of a beneficial interest in a Note), will be deemed to
           agree to treat the Notes for federal,  State and local income, single
           business and franchise tax purposes as indebtedness of the Issuer.

                            Prior to the due  presentment  for  registration  of
           transfer of this Note,  the  Issuer,  the  Indenture  Trustee and any
           agent of the Issuer or the Indenture  Trustee may treat the Person in
           whose  name this Note (as of the day of  determination  or as of such
           other date as may be specified in the Indenture) is registered as the
           owner hereof for all  purposes,  whether or not this Note be overdue,
           and none of the Issuer, the Indenture Trustee or any such agent shall
           be affected by notice to the contrary.

                            The  Indenture  permits,   with  certain  exceptions
           requiring the consent of all Noteholders  affected thereby as therein
           provided,  the amendment  thereof and the  modification of the rights
           and obligations of the Issuer and the rights of the Noteholders under
           the  Indenture  at any time by the  Issuer  with the  consent  of the
           Noteholders  of Notes  evidencing  not less  than a  majority  of the
           principal  amount of the Controlling  Note Class.  The Indenture also
           permits the  Indenture  Trustee to amend or waive  certain  terms and
           conditions  set forth in the  Indenture  without  the  consent of the
           Noteholders  provided certain conditions are satisfied.  In addition,
           the Indenture contains provisions permitting the Noteholders of Notes
           evidencing specified percentages of the principal amount of the Notes
           Outstanding  or of the  Controlling  Note  Class,  on  behalf  of all
           Noteholders,   to  waive   compliance  by  the  Issuer  with  certain
           provisions  of the  Indenture  and certain  past  defaults  under the
           Indenture and their  consequences.  Any such consent or waiver by the
           Noteholder of this Note (or any one or more Predecessor  Notes) shall
           be conclusive  and binding upon such  Noteholder  and upon all future
           Noteholders of this Note and of any Note issued upon the registration
           of transfer hereof or in exchange hereof or in lieu hereof whether or
           not notation of such consent or waiver is made upon this Note.

                            The term  "Issuer",  as used in this Note,  includes
           any successor to the Issuer under the Indenture.

                            The  Issuer is  permitted  by the  Indenture,  under
           certain circumstances, to merge or consolidate, subject to the rights
           of the Indenture Trustee and the Noteholders under the Indenture.

                            The Notes are issuable  only in  registered  form in
           denominations  as  provided  in the  Indenture,  subject  to  certain
           limitations therein set forth.

                            This Note and the  Indenture  shall be governed  by,
           and construed in  accordance  with the laws of the State of New York,
           without reference to its conflicts of law provisions.

                            No  reference  herein  to  the  Indenture,   and  no
           provision of this Note or of the Indenture, shall alter or impair the
           obligation of the Issuer, which is absolute and unconditional, to pay
           the  principal of and  interest on this Note at the times,  place and
           rate, and in the coin or currency herein prescribed.

                            Anything  herein  to the  contrary  notwithstanding,
           except as  expressly  provided  in the Basic  Documents,  none of The
           Chase  Manhattan  Bank, in its individual  capacity,  The Bank of New
           York, in its individual capacity,  any owner of a beneficial interest
           in the Issuer,  or any of their respective  partners,  beneficiaries,
           agents, officers, directors, employees or successors or assigns shall
           be  personally  liable for, nor shall  recourse be had to any of them
           for,  the  payment  of  principal  or of  interest  on  this  Note or
           performance  of,  or  omission  to  perform,  any of  the  covenants,
           obligations  or  indemnifications  contained  in the  Indenture.  The
           Noteholder  of this Note,  by his  acceptance  hereof,  agrees  that,
           except as expressly  provided in the Basic Documents,  in the case of
           an Event of Default under the Indenture, the Noteholder shall have no
           claim against any of the foregoing for any deficiency,  loss or claim
           therefrom;  provided, however, that nothing contained herein shall be
           taken to prevent recourse to, and enforcement  against, the assets of
           the Issuer for any and all liabilities,  obligations and undertakings
           contained in the Indenture or in this Note.

<PAGE>

A-4

                                   ASSIGNMENT

    Social Security or taxpayer I.D. or other identifying number of assignee:

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

                         (name and address of assignee)

           the within  Note and all rights  thereunder,  and hereby  irrevocably
           constitutes  and appoints  _________________,  attorney,  to transfer
           said Note on the books kept for registration thereof, with full power
           of substitution in the premises.

           Dated:                                                           */
                           Signature Guaranteed

                                                                            */

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

<PAGE>

A-5

                                                                     EXHIBIT A-5

                             FORM OF CLASS A-5 NOTE

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

           THE  PRINCIPAL OF THIS NOTE IS PAYABLE IN  INSTALLMENTS  AS SET FORTH
           HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT
           ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

           REGISTERED                                              $314,091,000

           No. R-1                                        CUSIP NO. 34527R EZ 2

                       FORD CREDIT AUTO OWNER TRUST 2000-G

                       CLASS A-5 6.66% ASSET BACKED NOTES

                            Ford  Credit  Auto Owner  Trust  2000-G,  a business
           trust  organized and existing under the laws of the State of Delaware
           (herein  referred to as the  "Issuer"),  for value  received,  hereby
           promises to pay to CEDE & CO., or registered  assigns,  the principal
           sum of THREE HUNDRED  FOURTEEN  MILLION  NINETY-ONE  THOUSAND DOLLARS
           payable on each Distribution Date in an amount equal to the aggregate
           amount,  if any,  payable to  Noteholders  of Class A-5 Notes on such
           Distribution Date from the Principal  Distribution Account in respect
           of  principal  on the Class A-5 Notes  pursuant to Section 3.1 of the
           Indenture dated as of November 1, 2000 (as from time to time amended,
           supplemented or otherwise  modified and in effect,  the "Indenture"),
           between  the  Issuer  and  The  Chase  Manhattan  Bank,  a  New  York
           corporation,  as Indenture  Trustee (in such capacity the  "Indenture
           Trustee"); provided, however, that the entire unpaid principal amount
           of this Note shall be due and  payable on the  earlier of the January
           2005 Distribution  Date (the "Class A-5 Final Scheduled  Distribution
           Date") and the Redemption  Date, if any,  pursuant to Section 10.1(a)
           of the Indenture.  Capitalized  terms used but not defined herein are
           defined in Article I of the  Indenture,  which also contains rules as
           to construction that shall be applicable herein.

                            The Issuer  shall pay  interest  on this Note at the
           rate per  annum  shown  above on each  Distribution  Date  until  the
           principal of this Note is paid or made available for payment,  on the
           principal   amount  of  this  Note   outstanding   on  the  preceding
           Distribution  Date (after  giving effect to all payments of principal
           made  on  the  preceding   Distribution  Date),  subject  to  certain
           limitations  contained in Section 3.1 of the  Indenture.  Interest on
           this Note will accrue for each  Distribution  Date from and including
           the fifteenth day of the calendar  month  immediately  preceding such
           Distribution Date (or, in the case of the initial  Distribution Date,
           from the Closing  Date) to but  excluding  the  fifteenth  day of the
           following calendar month. Interest will be computed on the basis of a
           360-day year of twelve 30-day months.  Such principal of and interest
           on this Note shall be paid in the  manner  specified  on the  reverse
           hereof.

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

                            Reference is made to the further  provisions of this
           Note set  forth on the  reverse  hereof,  which  shall  have the same
           effect as though fully set forth on the face of this Note.

                            Unless the certificate of authentication  hereon has
           been  executed by the  Indenture  Trustee whose name appears below by
           manual  signature,  this Note shall not be  entitled  to any  benefit
           under the Indenture referred to on the reverse hereof, or be valid or
           obligatory for any purpose.

                REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

<PAGE>

A-5

                            IN WITNESS  WHEREOF,  the  Issuer  has  caused  this
           instrument to be signed,  manually or in facsimile, by its Authorized
           Officer, as of the date set forth below.

           Date:

                                            FORD CREDIT AUTO OWNER TRUST 2000-G

                                            By:    THE BANK OF NEW YORK,
                                            not in its individual capacity but
                                            solely as Owner Trustee of
                                            Ford Credit Auto Owner Trust 2000-G

                                         By:
                                                   Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

           This is one of the Class A-5 Notes  designated  above and referred to
           in the within-mentioned Indenture.

           Date:

                                        THE CHASE MANHATTAN BANK,
                                        not in its individual capacity but
                                        solely as Indenture Trustee

                                    By:
                                                   Authorized Officer

<PAGE>

                                 REVERSE OF NOTE

                            This Note is one of a duly authorized issue of Notes
           of the Issuer,  designated  as its Class A-5 6.66% Asset Backed Notes
           (the "Class A-5 Notes")  which,  together with the Issuer's Class A-1
           6.569% Asset  Backed Notes (the "Class A-1 Notes"),  Class A-2 6.688%
           Asset  Backed  Notes (the "Class A-2  Notes"),  Class A-3 6.67% Asset
           Backed  Notes (the "Class A-3  Notes"),  Class A-4 6.62% Asset Backed
           Notes (the "Class A-4 Notes" and,  together with the Class A-1 Notes,
           the Class A-2 Notes, the Class A-3 Notes and the Class A-5 Notes, the
           "Class A Notes") and Class B 6.92% Asset  Backed  Notes (the "Class B
           Notes" and, together with the Class A Notes, the "Notes"), are issued
           under  the   Indenture,   to  which   Indenture  and  all  indentures
           supplemental  thereto reference is hereby made for a statement of the
           respective  rights and  obligations  thereunder  of the  Issuer,  the
           Indenture  Trustee and the Noteholders.  The Notes are subject to all
           terms of the Indenture.

                            The  Class A-5  Notes  are and will be  equally  and
           ratably  secured by the  collateral  pledged as security  therefor as
           provided in the Indenture.  The Class A-5 Notes are  subordinated  in
           right of  payment to the Class A-1  Notes,  the Class A-2 Notes,  the
           Class A-3  Notes  and the Class A-4 Notes and are  senior in right of
           payment to the Class B Notes,  each as and to the extent  provided in
           the Indenture.

                            Principal  of the Class A-5 Notes will be payable on
           each  Distribution  Date in an amount  described  on the face hereof.
           "Distribution Date" means the fifteenth day of each month, or, if any
           such day is not a Business  Day, the next  succeeding  Business  Day,
           commencing in December 2000.

                            As described on the face hereof,  the entire  unpaid
           principal amount of this Note shall be due and payable on the earlier
           of the Class A-5 Final Scheduled Distribution Date and the Redemption
           Date,  if  any,   pursuant  to  Section  10.1(a)  of  the  Indenture.
           Notwithstanding the foregoing,  the entire unpaid principal amount of
           the Notes  shall be due and  payable on the date on which an Event of
           Default  shall have  occurred  and be  continuing  and the  Indenture
           Trustee  or the  Noteholders  of Notes  evidencing  not  less  than a
           majority of the  principal  amount of the Class A Notes have declared
           the Notes to be immediately due and payable in the manner provided in
           Section 5.2 of the Indenture. All principal payments on the Class A-5
           Notes shall be made pro rata to the Noteholders entitled thereto.

                            Payments   of   interest   on  this   Note  on  each
           Distribution  Date,  together with the  installment of principal,  if
           any, to the extent not in full payment of this Note, shall be made to
           the Person whose name  appears as the  Registered  Noteholder  of the
           Note (or one or more  Predecessor  Notes) on the Note  Register as of
           the close of business on each Record Date either by wire  transfer in
           immediately  available  funds, to the account of such Noteholder at a
           bank or other entity having appropriate  facilities therefor, if such
           Noteholder  shall have  provided  to the Note  Registrar  appropriate
           written  instructions  at least five (5) Business  Days prior to such
           Distribution  Date  and  such  Noteholder's  Notes  in the  aggregate
           evidence a denomination of not less than  $1,000,000,  or, if not, by
           check mailed first-class  postage prepaid to such Person's address as
           it appears on the Note Register on such Record Date;  provided  that,
           unless Definitive Notes have been issued to Note Owners, with respect
           to Notes  registered on the Record Date in the name of the nominee of
           the  Clearing  Agency  (initially,  such  nominee  to be Cede & Co.),
           payments will be made by wire transfer in immediately available funds
           to the account designated by such nominee. Such payments will be made
           without  requiring  that  this  Note be  submitted  for  notation  of
           payment.  Any reduction in the principal  amount of this Note (or any
           one or more  Predecessor  Notes) effected by any payments made on any
           Distribution  Date shall be binding  upon all future  Noteholders  of
           this Note and of any Note  issued upon the  registration  of transfer
           hereof or in exchange hereof or in lieu hereof,  whether or not noted
           hereon.  If funds are  expected to be  available,  as provided in the
           Indenture, for payment in full of the then remaining unpaid principal
           amount  of this  Note on a  Distribution  Date,  then  the  Indenture
           Trustee,  in the name of and on behalf of the Issuer, will notify the
           Person who was the Registered Noteholder hereof as of the Record Date
           preceding such  Distribution  Date by notice mailed or transmitted by
           facsimile  prior to such  Distribution  Date, and the amount then due
           and payable shall be payable only upon  presentation and surrender of
           this Note at the Indenture Trustee's principal Corporate Trust Office
           or at the office of the Indenture  Trustee's agent appointed for such
           purposes located in The City of New York.

                            The   Issuer   shall   pay   interest   on   overdue
           installments of interest at the Class A-5 Rate to the extent lawful.

                            As provided in the Indenture,  the Class A Notes and
           the Class B Notes may be redeemed,  in whole but not in part,  in the
           manner and to the extent  described in the Indenture and the Sale and
           Servicing Agreement.

                            The   transfer  of  this  Note  is  subject  to  the
           restrictions  on  transfer  specified  on the face  hereof and to the
           other  limitations  set  forth  in  the  Indenture.  Subject  to  the
           satisfaction of such  restrictions and  limitations,  the transfer of
           this Note may be registered  on the Note  Register upon  surrender of
           this  Note for  registration  of  transfer  at the  office  or agency
           designated by the Issuer pursuant to the Indenture, duly endorsed by,
           or  accompanied   by  a  written   instrument  of  transfer  in  form
           satisfactory   to  the  Indenture   Trustee  duly  executed  by,  the
           Noteholder  hereof or such  Noteholder's  attorney duly authorized in
           writing,  with such  signature  guaranteed by an "eligible  guarantor
           institution"  meeting the  requirements  of the Note  Registrar,  and
           thereupon  one or more  new  Notes of the  same  Class in  authorized
           denominations  and in the same  aggregate  principal  amount  will be
           issued to the designated transferee or transferees. No service charge
           will be charged for any  registration of transfer or exchange of this
           Note,  but the  transferor may be required to pay a sum sufficient to
           cover any tax or other  governmental  charge  that may be  imposed in
           connection with any such registration of transfer or exchange.

                            Each  Noteholder or Note Owner, by its acceptance of
           a Note or, in the case of a Note Owner,  a  beneficial  interest in a
           Note, covenants and agrees that no recourse may be taken, directly or
           indirectly,  with respect to the obligations of the Issuer, the Owner
           Trustee or the Indenture  Trustee on the Notes or under the Indenture
           or  any   certificate  or  other  writing   delivered  in  connection
           therewith,  against (i) the Indenture  Trustee or the Owner  Trustee,
           each in its  individual  capacity,  (ii) any  owner  of a  beneficial
           interest  in the  Issuer or (iii) any  partner,  owner,  beneficiary,
           agent, officer,  director or employee of the Indenture Trustee or the
           Owner  Trustee,  each in its  individual  capacity,  any  holder of a
           beneficial interest in the Issuer, the Owner Trustee or the Indenture
           Trustee or of any successor or assign of the Indenture Trustee or the
           Owner Trustee,  each in its individual  capacity,  except as any such
           Person may have  expressly  agreed and except that any such  partner,
           owner or beneficiary shall be fully liable, to the extent provided by
           applicable  law,  for any  unpaid  consideration  for  stock,  unpaid
           capital  contribution  for  stock,  unpaid  capital  contribution  or
           failure to pay any installment or call owing to such entity.

                            Each  Noteholder  or Note Owner,  by acceptance of a
           Note or, in the case of a Note  Owner,  a  beneficial  interest  in a
           Note, covenants and agrees by accepting the benefits of the Indenture
           that such  Noteholder  or Note Owner  will not at any time  institute
           against the Seller, the General Partner or the Issuer, or join in any
           institution against the Seller, the General Partner or the Issuer of,
           any   bankruptcy,   reorganization,    arrangement,   insolvency   or
           liquidation  proceedings  under any  United  States  federal or State
           bankruptcy or similar law in connection with any obligations relating
           to the Notes, the Indenture or the other Basic Documents.

                            The Issuer has entered into the  Indenture  and this
           Note is issued with the intention that, for federal,  State and local
           income,  and  franchise  tax  purposes,  the Notes  will  qualify  as
           indebtedness  of the Issuer  secured by the  Indenture  Trust Estate.
           Each Noteholder,  by its acceptance of a Note (and each Note Owner by
           its acceptance of a beneficial interest in a Note), will be deemed to
           agree to treat the Notes for federal,  State and local income, single
           business and franchise tax purposes as indebtedness of the Issuer.

                            Prior to the due  presentment  for  registration  of
           transfer of this Note,  the  Issuer,  the  Indenture  Trustee and any
           agent of the Issuer or the Indenture  Trustee may treat the Person in
           whose  name this Note (as of the day of  determination  or as of such
           other date as may be specified in the Indenture) is registered as the
           owner hereof for all  purposes,  whether or not this Note be overdue,
           and none of the Issuer, the Indenture Trustee or any such agent shall
           be affected by notice to the contrary.

                            The  Indenture  permits,   with  certain  exceptions
           requiring the consent of all Noteholders  affected thereby as therein
           provided,  the amendment  thereof and the  modification of the rights
           and obligations of the Issuer and the rights of the Noteholders under
           the  Indenture  at any time by the  Issuer  with the  consent  of the
           Noteholders  of Notes  evidencing  not less  than a  majority  of the
           principal  amount of the Controlling  Note Class.  The Indenture also
           permits the  Indenture  Trustee to amend or waive  certain  terms and
           conditions  set forth in the  Indenture  without  the  consent of the
           Noteholders  provided certain conditions are satisfied.  In addition,
           the Indenture contains provisions permitting the Noteholders of Notes
           evidencing specified percentages of the principal amount of the Notes
           Outstanding  or of the  Controlling  Note  Class,  on  behalf  of all
           Noteholders,   to  waive   compliance  by  the  Issuer  with  certain
           provisions  of the  Indenture  and certain  past  defaults  under the
           Indenture and their  consequences.  Any such consent or waiver by the
           Noteholder of this Note (or any one or more Predecessor  Notes) shall
           be conclusive  and binding upon such  Noteholder  and upon all future
           Noteholders of this Note and of any Note issued upon the registration
           of transfer hereof or in exchange hereof or in lieu hereof whether or
           not notation of such consent or waiver is made upon this Note.

                            The term  "Issuer",  as used in this Note,  includes
           any successor to the Issuer under the Indenture.

                            The  Issuer is  permitted  by the  Indenture,  under
           certain circumstances, to merge or consolidate, subject to the rights
           of the Indenture Trustee and the Noteholders under the Indenture.

                            The Notes are issuable  only in  registered  form in
           denominations  as  provided  in the  Indenture,  subject  to  certain
           limitations therein set forth.

                            This Note and the  Indenture  shall be governed  by,
           and construed in  accordance  with the laws of the State of New York,
           without reference to its conflicts of law provisions.

                            No  reference  herein  to  the  Indenture,   and  no
           provision of this Note or of the Indenture, shall alter or impair the
           obligation of the Issuer, which is absolute and unconditional, to pay
           the  principal of and  interest on this Note at the times,  place and
           rate, and in the coin or currency herein prescribed.

                            Anything  herein  to the  contrary  notwithstanding,
           except as  expressly  provided  in the Basic  Documents,  none of The
           Chase  Manhattan  Bank, in its individual  capacity,  The Bank of New
           York, in its individual capacity,  any owner of a beneficial interest
           in the Issuer,  or any of their respective  partners,  beneficiaries,
           agents, officers, directors, employees or successors or assigns shall
           be  personally  liable for, nor shall  recourse be had to any of them
           for,  the  payment  of  principal  or of  interest  on  this  Note or
           performance  of,  or  omission  to  perform,  any of  the  covenants,
           obligations  or  indemnifications  contained  in the  Indenture.  The
           Noteholder  of this Note,  by his  acceptance  hereof,  agrees  that,
           except as expressly  provided in the Basic Documents,  in the case of
           an Event of Default under the Indenture, the Noteholder shall have no
           claim against any of the foregoing for any deficiency,  loss or claim
           therefrom;  provided, however, that nothing contained herein shall be
           taken to prevent recourse to, and enforcement  against, the assets of
           the Issuer for any and all liabilities,  obligations and undertakings
           contained in the Indenture or in this Note.

<PAGE>

A-5

                                   ASSIGNMENT

    Social Security or taxpayer I.D. or other identifying number of assignee:

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

                         (name and address of assignee)

           the within  Note and all rights  thereunder,  and hereby  irrevocably
           constitutes  and appoints  _________________,  attorney,  to transfer
           said Note on the books kept for registration thereof, with full power
           of substitution in the premises.

           Dated:                                                           */
                           Signature Guaranteed

                                                                            */

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

<PAGE>

B-1

                                                                       EXHIBIT B

                              FORM OF CLASS B NOTE

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

           THE  PRINCIPAL OF THIS NOTE IS PAYABLE IN  INSTALLMENTS  AS SET FORTH
           HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT
           ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

           REGISTERED
                                                                   $133,595,000

           No. R-1                                         CUSIP NO.34527R FA 6

                       FORD CREDIT AUTO OWNER TRUST 2000-G

                        CLASS B 6.92% ASSET BACKED NOTES

                            Ford  Credit  Auto Owner  Trust  2000-G,  a business
           trust  organized and existing under the laws of the State of Delaware
           (herein  referred to as the  "Issuer"),  for value  received,  hereby
           promises to pay to CEDE & CO., or registered  assigns,  the principal
           sum of ONE HUNDRED  THIRTY-THREE  MILLION  FIVE  HUNDRED  NINETY-FIVE
           THOUSAND DOLLARS payable on each Distribution Date in an amount equal
           to the aggregate  amount,  if any,  payable to Noteholders of Class B
           Notes  on such  Distribution  Date  from the  Principal  Distribution
           Account in  respect of  principal  on the Class B Notes  pursuant  to
           Section  3.1 of the  Indenture  dated as of November 1, 2000 (as from
           time to time  amended,  supplemented  or  otherwise  modified  and in
           effect, the "Indenture"),  between the Issuer and The Chase Manhattan
           Bank, a New York corporation,  as Indenture Trustee (in such capacity
           the "Indenture Trustee");  provided,  however, that the entire unpaid
           principal amount of this Note shall be due and payable on the earlier
           of the April 2005  Distribution  Date (the  "Class B Final  Scheduled
           Distribution  Date") and the  Redemption  Date,  if any,  pursuant to
           Section  10.1(a)  of the  Indenture.  Capitalized  terms used but not
           defined herein are defined in Article I of the Indenture,  which also
           contains rules as to construction that shall be applicable herein.

                            The Issuer  shall pay  interest  on this Note at the
           rate per  annum  shown  above on each  Distribution  Date  until  the
           principal of this Note is paid or made available for payment,  on the
           principal   amount  of  this  Note   outstanding   on  the  preceding
           Distribution  Date (after  giving effect to all payments of principal
           made  on  the  preceding   Distribution  Date),  subject  to  certain
           limitations  contained in Section 3.1 of the  Indenture.  Interest on
           this Note will accrue for each  Distribution  Date from and including
           the fifteenth day of the calendar  month  immediately  preceding such
           Distribution Date (or, in the case of the initial  Distribution Date,
           from the Closing  Date) to but  excluding  the  fifteenth  day of the
           following calendar month. Interest will be computed on the basis of a
           360-day year of twelve 30-day months.  Such principal of and interest
           on this Note shall be paid in the  manner  specified  on the  reverse
           hereof.

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

                            Reference is made to the further  provisions of this
           Note set  forth on the  reverse  hereof,  which  shall  have the same
           effect as though fully set forth on the face of this Note.

                            Unless the certificate of authentication  hereon has
           been  executed by the  Indenture  Trustee whose name appears below by
           manual  signature,  this Note shall not be  entitled  to any  benefit
           under the Indenture referred to on the reverse hereof, or be valid or
           obligatory for any purpose.

                REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

<PAGE>

B-1

                            IN WITNESS  WHEREOF,  the  Issuer  has  caused  this
           instrument to be signed,  manually or in facsimile, by its Authorized
           Officer, as of the date set forth below.

           Date:

                                            FORD CREDIT AUTO OWNER TRUST 2000-G

                                            By:    THE BANK OF NEW YORK,
                                            not in its individual capacity but
                                            solely as Owner Trustee of
                                            Ford Credit Auto Owner Trust 2000-G

                                         By:
                                                   Authorized Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

           This is one of the Class B Notes  designated above and referred to in
           the within-mentioned Indenture.

           Date:

                                     THE CHASE MANHATTAN BANK,
                                     not in its individual capacity but
                                     solely as Indenture Trustee

                                    By:
                                                   Authorized Officer

<PAGE>

                                 REVERSE OF NOTE

                            This Note is one of a duly authorized issue of Notes
           of the Issuer,  designated  as its Class B 6.92% Asset  Backed  Notes
           (the "Class B Notes" and, together with the Class A Notes referred to
           below,  the "Notes")  which,  together  with the  Issuer's  Class A-1
           6.569% Asset  Backed Notes (the "Class A-1 Notes"),  Class A-2 6.688%
           Asset  Backed  Notes (the "Class A-2  Notes"),  Class A-3 6.67% Asset
           Backed  Notes (the "Class A-3  Notes"),  Class A-4 6.62% Asset Backed
           Notes (the "Class A-4 Notes") and Class A-5 6.66% Asset  Backed Notes
           (the "Class A-5 Notes" and,  together  with the Class A-1 Notes,  the
           Class A-2  Notes,  the Class A-3 Notes and the Class A-4  Notes,  the
           "Class A Notes"), are issued under the Indenture,  to which Indenture
           and all indentures  supplemental thereto reference is hereby made for
           a statement of the respective  rights and  obligations  thereunder of
           the Issuer, the Indenture Trustee and the Noteholders.  The Notes are
           subject to all terms of the Indenture.

                            The  Class B  Notes  are and  will  be  equally  and
           ratably  secured by the  collateral  pledged as security  therefor as
           provided  in the  Indenture.  The Class B Notes are  subordinated  in
           right of payment  to the Class A Notes as and to the extent  provided
           in the Indenture.

                            Principal  of the Class B Notes  will be  payable on
           each  Distribution  Date in an amount  described  on the face hereof.
           "Distribution Date" means the fifteenth day of each month, or, if any
           such day is not a Business  Day, the next  succeeding  Business  Day,
           commencing in December 2000.

                            As described on the face hereof,  the entire  unpaid
           principal amount of this Note shall be due and payable on the earlier
           of the Class B Final Scheduled  Distribution  Date and the Redemption
           Date,  if  any,   pursuant  to  Section  10.1(a)  of  the  Indenture.
           Notwithstanding the foregoing,  the entire unpaid principal amount of
           the Notes  shall be due and  payable on the date on which an Event of
           Default  shall have  occurred  and be  continuing  and the  Indenture
           Trustee  or the  Noteholders  of Notes  evidencing  not  less  than a
           majority of the principal  amount of the Controlling  Note Class have
           declared  the Notes to be  immediately  due and payable in the manner
           provided in Section 5.2 of the Indenture.  All principal  payments on
           the Class B Notes shall be made pro rata to the Noteholders  entitled
           thereto.

                            Payments   of   interest   on  this   Note  on  each
           Distribution  Date,  together with the  installment of principal,  if
           any, to the extent not in full payment of this Note, shall be made to
           the Person whose name  appears as the  Registered  Noteholder  of the
           Note (or one or more  Predecessor  Notes) on the Note  Register as of
           the close of business on each Record Date either by wire  transfer in
           immediately  available  funds, to the account of such Noteholder at a
           bank or other entity having appropriate  facilities therefor, if such
           Noteholder  shall have  provided  to the Note  Registrar  appropriate
           written  instructions  at least five (5) Business  Days prior to such
           Distribution  Date  and  such  Noteholder's  Notes  in the  aggregate
           evidence a denomination of not less than  $1,000,000,  or, if not, by
           check mailed first-class  postage prepaid to such Person's address as
           it appears on the Note Register on such Record Date;  provided  that,
           unless Definitive Notes have been issued to Note Owners, with respect
           to Notes  registered on the Record Date in the name of the nominee of
           the  Clearing  Agency  (initially,  such  nominee  to be Cede & Co.),
           payments will be made by wire transfer in immediately available funds
           to the account designated by such nominee. Such payments will be made
           without  requiring  that  this  Note be  submitted  for  notation  of
           payment.  Any reduction in the principal  amount of this Note (or any
           one or more  Predecessor  Notes) effected by any payments made on any
           Distribution  Date shall be binding  upon all future  Noteholders  of
           this Note and of any Note  issued upon the  registration  of transfer
           hereof or in exchange hereof or in lieu hereof,  whether or not noted
           hereon.  If funds are  expected to be  available,  as provided in the
           Indenture, for payment in full of the then remaining unpaid principal
           amount  of this  Note on a  Distribution  Date,  then  the  Indenture
           Trustee,  in the name of and on behalf of the Issuer, will notify the
           Person who was the Registered Noteholder hereof as of the Record Date
           preceding such  Distribution  Date by notice mailed or transmitted by
           facsimile  prior to such  Distribution  Date, and the amount then due
           and payable shall be payable only upon  presentation and surrender of
           this Note at the Indenture Trustee's principal Corporate Trust Office
           or at the office of the Indenture  Trustee's agent appointed for such
           purposes located in The City of New York.

                            The   Issuer   shall   pay   interest   on   overdue
           installments of interest at the Class B Rate to the extent lawful.

                            As provided in the Indenture,  the Class A Notes and
           the Class B Notes may be redeemed,  in whole but not in part,  in the
           manner and to the extent  described in the Indenture and the Sale and
           Servicing Agreement.

                            The   transfer  of  this  Note  is  subject  to  the
           restrictions  on  transfer  specified  on the face  hereof and to the
           other  limitations  set  forth  in  the  Indenture.  Subject  to  the
           satisfaction of such  restrictions and  limitations,  the transfer of
           this Note may be registered  on the Note  Register upon  surrender of
           this  Note for  registration  of  transfer  at the  office  or agency
           designated by the Issuer pursuant to the Indenture, duly endorsed by,
           or  accompanied   by  a  written   instrument  of  transfer  in  form
           satisfactory   to  the  Indenture   Trustee  duly  executed  by,  the
           Noteholder  hereof or such  Noteholder's  attorney duly authorized in
           writing,  with such  signature  guaranteed by an "eligible  guarantor
           institution"  meeting the  requirements  of the Note  Registrar,  and
           thereupon  one or more  new  Notes of the  same  Class in  authorized
           denominations  and in the same  aggregate  principal  amount  will be
           issued to the designated transferee or transferees. No service charge
           will be charged for any  registration of transfer or exchange of this
           Note,  but the  transferor may be required to pay a sum sufficient to
           cover any tax or other  governmental  charge  that may be  imposed in
           connection with any such registration of transfer or exchange.

                            Each  Noteholder or Note Owner, by its acceptance of
           a Note or, in the case of a Note Owner,  a  beneficial  interest in a
           Note, covenants and agrees that no recourse may be taken, directly or
           indirectly,  with respect to the obligations of the Issuer, the Owner
           Trustee or the Indenture  Trustee on the Notes or under the Indenture
           or  any   certificate  or  other  writing   delivered  in  connection
           therewith,  against (i) the Indenture  Trustee or the Owner  Trustee,
           each in its  individual  capacity,  (ii) any  owner  of a  beneficial
           interest  in the  Issuer or (iii) any  partner,  owner,  beneficiary,
           agent, officer,  director or employee of the Indenture Trustee or the
           Owner  Trustee,  each in its  individual  capacity,  any  holder of a
           beneficial interest in the Issuer, the Owner Trustee or the Indenture
           Trustee or of any successor or assign of the Indenture Trustee or the
           Owner Trustee,  each in its individual  capacity,  except as any such
           Person may have  expressly  agreed and except that any such  partner,
           owner or beneficiary shall be fully liable, to the extent provided by
           applicable  law,  for any  unpaid  consideration  for  stock,  unpaid
           capital  contribution  for  stock,  unpaid  capital  contribution  or
           failure to pay any installment or call owing to such entity.

                            Each  Noteholder  or Note Owner,  by acceptance of a
           Note or, in the case of a Note  Owner,  a  beneficial  interest  in a
           Note, covenants and agrees by accepting the benefits of the Indenture
           that such  Noteholder  or Note Owner  will not at any time  institute
           against the Seller, the General Partner or the Issuer, or join in any
           institution against the Seller, the General Partner or the Issuer of,
           any   bankruptcy,   reorganization,    arrangement,   insolvency   or
           liquidation  proceedings  under any  United  States  federal or State
           bankruptcy or similar law in connection with any obligations relating
           to the Notes, the Indenture or the other Basic Documents.

                            The Issuer has entered into the  Indenture  and this
           Note is issued with the intention that, for federal,  State and local
           income,  and  franchise  tax  purposes,  the Notes  will  qualify  as
           indebtedness  of the Issuer  secured by the  Indenture  Trust Estate.
           Each Noteholder,  by its acceptance of a Note (and each Note Owner by
           its acceptance of a beneficial interest in a Note), will be deemed to
           agree to treat the Notes for federal,  State and local income, single
           business and franchise tax purposes as indebtedness of the Issuer.

                            Prior to the due  presentment  for  registration  of
           transfer of this Note,  the  Issuer,  the  Indenture  Trustee and any
           agent of the Issuer or the Indenture  Trustee may treat the Person in
           whose  name this Note (as of the day of  determination  or as of such
           other date as may be specified in the Indenture) is registered as the
           owner hereof for all  purposes,  whether or not this Note be overdue,
           and none of the Issuer, the Indenture Trustee or any such agent shall
           be affected by notice to the contrary.

                            The  Indenture  permits,   with  certain  exceptions
           requiring the consent of all Noteholders  affected thereby as therein
           provided,  the amendment  thereof and the  modification of the rights
           and obligations of the Issuer and the rights of the Noteholders under
           the  Indenture  at any time by the  Issuer  with the  consent  of the
           Noteholders  of Notes  evidencing  not less  than a  majority  of the
           principal  amount of the Controlling  Note Class.  The Indenture also
           permits the  Indenture  Trustee to amend or waive  certain  terms and
           conditions  set forth in the  Indenture  without  the  consent of the
           Noteholders  provided certain conditions are satisfied.  In addition,
           the Indenture contains provisions permitting the Noteholders of Notes
           evidencing specified percentages of the principal amount of the Notes
           Outstanding  or of the  Controlling  Note  Class,  on  behalf  of all
           Noteholders,   to  waive   compliance  by  the  Issuer  with  certain
           provisions  of the  Indenture  and certain  past  defaults  under the
           Indenture and their  consequences.  Any such consent or waiver by the
           Noteholder of this Note (or any one or more Predecessor  Notes) shall
           be conclusive  and binding upon such  Noteholder  and upon all future
           Noteholders of this Note and of any Note issued upon the registration
           of transfer hereof or in exchange hereof or in lieu hereof whether or
           not notation of such consent or waiver is made upon this Note.

                            The term  "Issuer",  as used in this Note,  includes
           any successor to the Issuer under the Indenture.

                            The  Issuer is  permitted  by the  Indenture,  under
           certain circumstances, to merge or consolidate, subject to the rights
           of the Indenture Trustee and the Noteholders under the Indenture.

                            The Notes are issuable  only in  registered  form in
           denominations  as  provided  in the  Indenture,  subject  to  certain
           limitations therein set forth.

                            This Note and the  Indenture  shall be governed  by,
           and construed in  accordance  with the laws of the State of New York,
           without reference to its conflicts of law provisions.

                            No  reference  herein  to  the  Indenture,   and  no
           provision of this Note or of the Indenture, shall alter or impair the
           obligation of the Issuer, which is absolute and unconditional, to pay
           the  principal of and  interest on this Note at the times,  place and
           rate, and in the coin or currency herein prescribed.

                            Anything  herein  to the  contrary  notwithstanding,
           except as  expressly  provided  in the Basic  Documents,  none of The
           Chase  Manhattan  Bank, in its individual  capacity,  The Bank of New
           York, in its individual capacity,  any owner of a beneficial interest
           in the Issuer,  or any of their respective  partners,  beneficiaries,
           agents, officers, directors, employees or successors or assigns shall
           be  personally  liable for, nor shall  recourse be had to any of them
           for,  the  payment  of  principal  or of  interest  on  this  Note or
           performance  of,  or  omission  to  perform,  any of  the  covenants,
           obligations  or  indemnifications  contained  in the  Indenture.  The
           Noteholder  of this Note,  by his  acceptance  hereof,  agrees  that,
           except as expressly  provided in the Basic Documents,  in the case of
           an Event of Default under the Indenture, the Noteholder shall have no
           claim against any of the foregoing for any deficiency,  loss or claim
           therefrom;  provided, however, that nothing contained herein shall be
           taken to prevent recourse to, and enforcement  against, the assets of
           the Issuer for any and all liabilities,  obligations and undertakings
           contained in the Indenture or in this Note.

<PAGE>

B-1

                                   ASSIGNMENT

    Social Security or taxpayer I.D. or other identifying number of assignee:

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

                         (name and address of assignee)

           the within  Note and all rights  thereunder,  and hereby  irrevocably
           constitutes  and appoints  _________________,  attorney,  to transfer
           said Note on the books kept for registration thereof, with full power
           of substitution in the premises.

           Dated:                                                           */
                           Signature Guaranteed

                                                                            */

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

<PAGE>

C-1

                                                                       EXHIBIT C

                        FORM OF NOTE DEPOSITORY AGREEMENT

<PAGE>

SA-2

                                                                      SCHEDULE A

                             Schedule of Receivables

                Provided to the Indenture Trustee at the Closing

<PAGE>

                                                                      APPENDIX A

                              Definitions and Usage

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