Document:

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                                                                     EXHIBIT 4.2

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                      CONTRIBUTION AND SERVICING AGREEMENT

                                      among

                        CONSECO FINANCE LEASE 2000-1, LLC
                                     Issuer

                        GREEN TREE LEASE FINANCE II, INC.
                                   Contributor

                   CONSECO FINANCE VENDOR SERVICES CORPORATION
                   In its Individual Capacity and as Servicer

                        WELLS FARGO BANK MINNESOTA, N.A.
                                     Trustee

                            Dated as of July 1, 2000

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                                TABLE OF CONTENTS
                                                                            Page
                                                                            ----
INTRODUCTION................................................................. 1

ARTICLE I DEFINITIONS.........................................................1
  SECTION 1.1.  Definitions...................................................1
  SECTION 1.2.  Usage of Terms................................................8
  SECTION 1.3.  Calculations..................................................9
  SECTION 1.4.  Section References............................................9
  SECTION 1.5.  No Recourse...................................................9

ARTICLE II CONVEYANCE OF LEASES...............................................9
  SECTION 2.1.  Conveyance of Leases and Related Assets.......................9
  SECTION 2.2.  Custody of Lease Files.......................................10
  SECTION 2.3.  Further Assurances...........................................12
  SECTION 2.4.  Representations and Warranties of Contributor................12
  SECTION 2.5.  Nonpetition Covenant.........................................15
  SECTION 2.6.  Repurchase of Leases Upon Breach of Representations
                  and Warranties.,,,,,,,,,,,,,,,,,,,,,,......................15

ARTICLE III ADMINISTRATION AND SERVICING OF LEASES...........................16
  SECTION 3.1.  Duties of the Servicer.......................................16
  SECTION 3.2.  Collection of Lease Payments; Modifications of Leases........17
  SECTION 3.3.  Realization Upon Leases......................................18
  SECTION 3.4.  Insurance, Maintenance and Taxes.............................20
  SECTION 3.5.  Maintenance of Security Interests in Equipment...............22
  SECTION 3.6.  Covenants, Representations, and Warranties of Servicer.......22
  SECTION 3.7.  Sub-Servicers................................................24
  SECTION 3.8.  Total Servicing Fee; Payment of Expenses by Servicer.........24
  SECTION 3.9.  Servicer's Certificate.......................................24
  SECTION 3.10. Annual Statement as to Compliance; Notice of Servicer
                   Termination Event.........................................25
  SECTION 3.11. Annual Independent Accountants' Report.......................25
  SECTION 3.12. Access to Certain Documentation and Information
                   Regarding Leases..........................................26
  SECTION 3.13. Certain Duties of the Servicer...............................26
  SECTION 3.14. Duties of the Servicer under the Indenture...................26
  SECTION 3.15. Fidelity Bond................................................27

ARTICLE IV COLLECTIONS AND DEPOSITS..........................................28
  SECTION 4.1.  Initial Deposit..............................................28
  SECTION 4.2.  Collections..................................................28
  SECTION 4.3.  Application of Collections...................................29
  SECTION 4.4.  Net Deposits.................................................30
  SECTION 4.5.  Servicer Advances............................................30

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ARTICLE V TERMINATION........................................................30
  SECTION 5.1.  Optional Purchase of All Leases; Liquidation of
                  Trust Assets...............................................30
  SECTION 5.2.  Mandatory Purchase of Leases.................................31

ARTICLE VI THE CONTRIBUTOR...................................................31
  SECTION 6.1.  Liability of Contributor.....................................31
  SECTION 6.2.  Merger or Consolidation of, or Assumption of the
                  Obligations of, Contributor; Amendment of Certificate
                  of Incorporation...........................................31
  SECTION 6.3.  Limitation on Liability of Contributor and Others............32
  SECTION 6.4.  Contributor May Own Notes....................................32
  SECTION 6.5.  Covenants of the Contributor.................................32

ARTICLE VII THE SERVICER.....................................................33
  SECTION 7.1.  Liability of Servicer; Indemnities...........................33
  SECTION 7.2.  Merger or Consolidation of, or Assumption of the
                  Obligations of, the Servicer...............................34
  SECTION 7.3.  Limitation on Liability of Servicer and Others...............35
  SECTION 7.4.  Servicer Not to Resign.......................................35
  SECTION 7.5.  Corporate Existence..........................................35

ARTICLE VIII SERVICER TERMINATION EVENTS.....................................35
   SECTION 8.1.  Servicer Termination Event..................................35
   SECTION 8.2.  Consequences of a Servicer Termination Event................37
   SECTION 8.3.  Trustee to Act; Appointment of Successor....................37
   SECTION 8.4.  Notification to Noteholders.................................38
   SECTION 8.5.  Waiver of Past Defaults.....................................38

ARTICLE IX SUBSTITUTION OF LEASES............................................38
  SECTION 9.1.  Substitution.................................................38
  SECTION 9.2.  Procedure....................................................39
  SECTION 9.3.  Objection and Repurchase.....................................40
  SECTION 9.4.  Vendor Services' and Servicer's Subsequent Obligations.......41

ARTICLE X MISCELLANEOUS PROVISIONS...........................................41
  SECTION 10.1.  Amendment...................................................41
  SECTION 10.2.  Protection of Title to Trust Assets.........................42
  SECTION 10.3.  Governing Law...............................................44
  SECTION 10.4.  Severability of Provisions..................................44
  SECTION 10.5.  Assignment..................................................44
  SECTION 10.6.  Third-Party Beneficiaries...................................44
  SECTION 10.7.  Counterparts................................................44
  SECTION 10.8.  Intention of Parties........................................45

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  SECTION 10.9.  Notices.....................................................45
  SECTION 10.10. Income Tax Characterization.................................45

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                                    EXHIBITS

Exhibit A    --      Schedule of Leases and Equipment

Exhibit B    --      Form of Servicer's Certificate

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     THIS CONTRIBUTION AND SERVICING AGREEMENT, dated as of July 1, 2000, is
made among CONSECO FINANCE LEASE 2000-1, LLC, a Delaware limited liability
company (the "Issuer"), GREEN TREE LEASE FINANCE II, INC., a Minnesota
corporation, as Contributor (the "Contributor"), Conseco Finance VENDOR SERVICES
CORPORATION, a Delaware corporation, in its individual capacity and as Servicer
(in its individual capacity, "Vendor Services"; in its capacity as Servicer, the
"Servicer"), and Wells Fargo Bank Minnesota, N.A., a national banking
association organized and existing under the laws of the United States of
America, as trustee under the Indenture (the "Trustee").

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

                                    ARTICLE I

                                   DEFINITIONS

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

     Accountants' Report: The report of a firm of nationally recognized
independent accountants described in Section 3.11.

     Accounting Date: With respect to a Payment Date, the last day of the
preceding calendar month.

     Adjusted Lease: A Lease that has had one or more terms adjusted or modified
by the Servicer, other than modifications permitted by Section 3.2.

     Administrative Fee: With respect to any Collection Period, all
administrative fees, expenses and charges collected in respect of the Leases
during such Collection Period, including late fees, late payment interest,
documentation fees, insurance administration charges and any Extension Fees.

     Affiliate: With respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person, means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

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     Agreement or "this Agreement": This Contribution and Servicing Agreement,
all amendments and supplements thereto and all exhibits and schedules to any of
the foregoing.

     Book Value: With respect to any Equipment, the value of such Equipment as
shown on the accounting books and records of Vendor Services as of the Cut-Off
Date. The Book Value for each item of Equipment shall be set forth on Exhibit A
hereto (as the same may be revised from time to time).

     Business Day: Any day (other than a Saturday, Sunday or legal holiday) on
which commercial banking institutions in St. Paul, Minnesota, or any other
location of any successor Servicer or successor Trustee, are open for regular
business.

     Collection Account: The account designated as such in, and established and
maintained pursuant to, Section 8.02 of the Indenture.

     Collection Period: With respect to a Payment Date, the calendar month
preceding the month in which such Payment Date occurs (such calendar month being
referred to as the "related" Collection Period with respect to such Payment
Date). With respect to an Accounting Date, the Collection Period in which such
Accounting Date occurs is referred to herein as the "related" Collection Period
with respect to such Accounting Date.

     Collection Records: All manually prepared or computer generated records
relating to collection efforts or payment histories with respect to the Leases.

     Contributor: Green Tree Lease Finance II, Inc., a Minnesota corporation, or
its successor in interest pursuant to Section 6.2.

     Cut-Off Date: The Initial Cut-Off Date or, in the case of a Substitute
Lease, the first day of the month of transfer of such Substitute Lease to the
Issuer.

     Deposit Date: With respect to any Collection Period, the Business Day
immediately preceding the related Determination Date.

     Determination Date: With respect to any Collection Period, the first
Business Day immediately preceding the related Payment Date.

     Eligible Lease: A Lease satisfying the Representations and Warranties.

     Eligible Servicer: Vendor Services, the Trustee or another Person which at
the time of its appointment as Servicer (i) is servicing a portfolio of
equipment lease contracts, installment sale contracts, promissory notes, loan
and security agreements and/or other similar types of receivables comparable to
the Leases, (ii) is legally qualified and has the capacity to service the
Leases, (iii) has demonstrated the ability professionally and competently to
service a portfolio of equipment lease

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contracts, installment sale contracts, promissory notes, loan and security
agreements and other similar types of receivables comparable to the Leases with
reasonable skill and care, (iv) has available software which is adequate to
perform its duties and responsibilities under this Agreement, and (v) satisfies
the Rating Agency Condition.

     Equipment: The Equipment subject to a Lease, as more particularly described
on Exhibit A hereto (as the same may be revised from time to time).

     Extension Fees: Any fee received by the Servicer in consideration for the
granting of an extension on the payment of any Scheduled Payment due under a
Lease.

     Indenture: The Indenture, dated as of July 1, 2000, between the Issuer and
the Trustee, as the same may be amended and supplemented from time to time.

     Initial Cut-Off Date: July 1, 2000.

     Initial Pool Principal Balance: $614,154,373.70

     Insurance, Maintenance and Tax Accounts: The accounts which are established
and maintained pursuant to Section 3.4(a).

     Insurance Policy: Any insurance policy benefiting the lessor or secured
party under a Lease providing loss or physical damage, theft or similar coverage
with respect to the Equipment.

     Issuer: Conseco Finance Lease 2000-1, LLC.

     Lease File: The documents, electronic entries, instruments and writings
listed in Section 2.2 pertaining to a particular Lease.

     Lease Pool Principal Balance: With respect to any Payment Date, the sum of
the Principal Balances (computed as of the related Accounting Date) for all
Leases.

                  Leases: The lease contracts listed on Exhibit A hereto
(excluding any such lease contract which has become a Purchased Lease but
including all Substitute Leases) and all rights and obligations under such
contracts, including, without limitation, all monies at any time paid or payable
thereon or in respect thereof from and after the Cut-Off Date (whether in the
form of (i) Scheduled Payments (including those Scheduled Payments due prior to,
but not received as of, the Cut-Off Date, but excluding those Scheduled Payments
due on or after, but received prior to, the Cut-Off Date), (ii) Prepayments,
(iii) Liquidation Proceeds (including all net proceeds from the disposition of
the related Equipment), (iv) Extension Fees, (v) payments to be applied by the
Servicer to the payment of insurance charges, maintenance, taxes or other
similar obligations, (vi) payments to be retained by the Servicer in payment of
Administrative Fees, or otherwise), and all rights of the lessor in the related

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Equipment (other than any ownership interest of the lessor in such Equipment),
Insurance Policies and any other security for the payment of amounts due under
such contracts.

     Lien: Any security interest, lien, charge, pledge, preference, equity or
encumbrance of any kind, including tax liens, mechanics' liens and any liens
that attach by operation of law.

     Liquidated Lease: With respect to any Collection Period, (i) a Lease which,
during such Collection Period, was charged off as uncollectible by the Servicer
in accordance with its credit and collection policies and procedures (which
shall be no later than the date as of which the Servicer has repossessed and
disposed of the related Equipment and otherwise collected all proceeds
(including any proceeds of insurance to be applied as described in Section
3.4(c)(ii)) which, in the Servicer's reasonable judgment, can be collected under
such Lease) following a default thereunder or upon damage to or destruction of
such Equipment (if such Equipment is not to be replaced or repaired in
accordance with Section 3.4(c)(i)), or (ii) a Lease as to which, during such
Collection Period, 10% or more of a Scheduled Payment shall have become 180 days
delinquent.

     Liquidation Proceeds: All amounts received by the Servicer (i) in
connection with the liquidation of any Lease and disposition of the related
Equipment or (ii) as insurance proceeds with respect to any damaged or destroyed
Equipment to be applied as described in Section 3.4(c)(ii), in each case net of
(a) reasonable out-of-pocket expenses incurred by or on behalf of the Servicer
in connection with the collection of such Lease and the maintenance,
repossession, repair, storage and disposition of the related Equipment
(including taxes and insurance charges, to the extent in excess of amounts
available therefor and relating to such Lease in the Insurance, Maintenance and
Tax Accounts, as well as attorneys' fees) and (b) amounts that are required to
be refunded to the Obligor on such Lease; provided, however, that the
Liquidation Proceeds with respect to any Lease and disposition of the related
Equipment shall in no event be less than zero.

     Monthly Records: All records and data maintained by the Servicer with
respect to the Leases in accordance with its customary standards, policies and
procedures.

     Note Majority: Holders of Notes representing a majority of the Principal
Balance of each Class of the Notes then Outstanding.

     Obligor: The lessee, borrower, purchaser or any other Person or Persons who
are obligated to make payments under a Lease.

     Opinion of Counsel: A written opinion of counsel acceptable in form and
substance and from counsel acceptable to the Issuer and, if such opinion or a
copy thereof is required to be delivered to the Trustee, to the Trustee.

     Original Term: The term of a Lease as of the Cut-Off Date (which shall
include any renewals or extensions of the original term thereof prior to the
Cut-Off Date), as such term may be

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extended in accordance with Section 3.2(c) or as a result of a bankruptcy
proceeding with respect to the related Obligor, but excluding, in the case of
any Lease, any other extensions or renewals thereof.

     Payment Date: The twentieth day of each calendar month (or, if such
twentieth day is not a Business Day, the next succeeding Business Day),
commencing August 21, 2000.

     Person: Any legal person, including any individual, corporation,
partnership, joint venture, estate, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof, or any other entity.

     Pledged Revenues: (i) All Scheduled Payments on the Leases received on or
after the Cut-Off Date (including all Scheduled Payments due prior to, but not
received as of, the Cut-Off Date, but excluding any Scheduled Payments due on or
after, but received prior to, the Cut-Off Date); (ii) any Prepayments received
on the Leases on or after the Cut-Off Date (to the extent Vendor Services has
not delivered a Substitute Lease); (iii) the Purchase Amount of any Leases
repurchased by Vendor Services (to the extent Vendor Services has not delivered
a Substitute Lease) in accordance with Section 2.6 (other than any portion
thereof attributable to the Book Value of the Equipment); (iv) the amount paid
by the Contributor to repurchase the Leases pursuant to Section 5.1; (v)
Liquidation Proceeds received in respect of any Leases and the disposition of
the related Equipment on or after the Cut-Off Date (to the extent Vendor
Services has not delivered a Substitute Lease); and (vi) any earnings on the
investment of amounts credited to the Collection Account.

     Portfolio Expense Account: The account designated as such in, and
established and maintained pursuant to, Section 8.09 of the Indenture.

     Predecessor Lease: As defined in Section 9.1.

     Prepaid Lease: With respect to any Collection Period, a Lease that has been
prepaid in full, whether pursuant to its terms or with the Servicer's consent in
accordance with Section 3.2(d).

     Prepayment: With respect to any Collection Period for any Lease, a
voluntary prepayment during such Collection Period of amounts due and owing
under such Lease.

     Principal Balance: As of any Accounting Date,

          (1) in the case of any Lease that does not by its terms permit
     prepayment or early termination, the present value of the unpaid Scheduled
     Payments due on such Lease after such last day of the Collection Period
     (excluding all Scheduled Payments due on or prior to, but not received as
     of, such last day, as well as any Scheduled Payments due after such last
     day and received on or prior thereto), after giving effect to any
     Prepayments received on or prior to such last day, discounted monthly
     (assuming, for purposes of such calculation, that each Scheduled Payment is
     due on the last day of the applicable Collection Period) at the rate of
     _____% per annum;

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          (2) in the case of any Lease that permits prepayment or early
     termination only upon payment of a premium that is at least equal to the
     present value (calculated in the manner described in clause (1) above) of
     the unpaid Scheduled Payments due on such Lease after the date of such
     prepayment, the amount specified in clause (1) above; and

          (3) in the case of any Lease that permits prepayment or early
     termination without payment of a premium at least equal to the amount
     specified in clause (2) above, the lesser of (a) the outstanding principal
     balance of such Lease after giving effect to Scheduled Payments due on or
     prior to such last day of the Collection Period, whether or not received,
     as well as any Prepayments, and any Scheduled Payments due after such last
     day, received on or prior to such last day, and (b) the amount specified in
     clause (1) above;

provided that the Principal Balance of any Lease which became a Liquidated Lease
during the related Collection Period or was required to be repurchased by Vendor
Services as of the last day of the related Collection Period in accordance with
Section 2.6, will be deemed to be zero on and after the last day of such
Collection Period.

     Purchase Amount: With respect to a Lease and related Equipment required to
be repurchased by Vendor Services in accordance with Section 2.6, the sum of (i)
the Required Payoff Amount for such Lease as of the Accounting Date on which
such obligation to so repurchase arises, plus (ii) the Book Value (if any) of
the related Equipment.

     Purchased Lease: As of any Deposit Date, any Lease which Vendor Services
has repurchased (or substituted with a Substitute Lease therefor) as of the
related Accounting Date, as required by Section 2.6.

     Related Assets: The assets, in addition to the Leases, transferred by the
Contributor to the Issuer pursuant to Section 2.1(a).

     Related Documents: The Indenture, the Underwriting Agreement with the
Underwriters of the Notes, the Notes and the Transfer Agreement. The Related
Documents executed by any party are referred to herein as "such party's Related
Documents," "its Related Documents" or by a similar expression.

     Representations and Warranties: As defined in Section 2.6.

     Required Payoff Amount: With respect to any Collection Period for any
Lease, the sum of (i) the Scheduled Payment due in such Collection Period,
together with any Scheduled Payments due in prior Collection Periods but not yet
received, plus (ii) the Principal Balance of such Lease (after taking into
account the Scheduled Payment due in such Collection Period, whether or not
received).

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     Reserve Account: The account designated as such in, and established and
maintained pursuant to, Section 8.07 of the Indenture.

     Residual Account: The account designated as such in, and established and
maintained pursuant to, Section 8.06 of the Indenture.

     Residual Realizations: Cash flows realized from the sale or re-lease of the
Equipment following the scheduled expiration dates or voluntary early
termination of the Leases, other than Equipment subject to (i) Liquidated Leases
or (ii) Prepaid Leases for which Vendor Services has delivered a Substitute
Lease in accordance with Section 9.2.

     Responsible Officer: When used with respect to the Servicer, the
Contributor or any other Person, the President, any Vice-President or Assistant
Vice-President or the Controller of such Person, or any other officer or
employee having similar functions.

     Schedule of Leases: Collectively, the schedules of Leases (which shall be
made available to the parties hereto on a computer disk or other data storage
medium) attached hereto as (or described in) Exhibit A, as such schedules may be
revised from time to time in accordance with Sections 2.6 and 9.2(a).

     Scheduled Payment: With respect to any Collection Period for any Lease
during the Original Term of such Lease, the required payment or payments due
under such Lease in such Collection Period other than those portions of such
payments which (i) under such Lease, are to be applied by the Servicer to the
payment of insurance charges, maintenance, taxes and other similar obligations,
or (ii) are retained by the Servicer in payment of Administrative Fees or are
late payments as to which Servicer Advances were made on a Payment Date.

     Servicer: Conseco Finance Vendor Services Corporation, its successor in
interest pursuant to Section 8.2 or, after any termination of the Servicer upon
a Servicer Termination Event, any successor Servicer.

     Servicer Advance: As defined in Section 4.5.

     Servicer Termination Event: An event described in Section 8.1.

     Servicer's Certificate: With respect to each Determination Date, a
certificate, completed by and executed on behalf of the Servicer, in accordance
with Section 3.9, substantially in the form attached hereto as Exhibit B.

     Servicing Account: The account designated as such in, and established and
maintained pursuant to, Section 8.05 of the Indenture.

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     Servicing Fee: With respect to any Collection Period, the fee payable to
the Servicer or any successor servicer for services rendered during such
Collection Period, which shall be equal to one-twelfth of the Servicing Fee Rate
multiplied by the Lease Pool Principal Balance determined as of the last day of
the second preceding Collection Period (or, in the case of the Servicing Fee
with respect to the Collection Period commencing on the Initial Cut-Off Date, an
amount equal to the product of (i) the Servicing Fee Rate, (ii) the Initial
Lease Pool Principal Balance, and (iii) a fraction, the numerator of which is
___ and the denominator of which is 360. If the Servicing Fee on any Payment
Date is less than $75,000 (either because of an insufficient Amount Available or
because the Lease Pool Principal Balance has been reduced), the Trustee will
withdraw the amount equal to the excess of $75,000 over the Servicing Fee

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     Servicing Fee Rate: 0.50% per annum prior to and including the July 2001
Payment Date and 0.75% per annum thereafter. If any successor servicer is
appointed pursuant to this Agreement, the Servicing Fee Rate shall be 0.75% for
such successor servicer.

     Sub-Servicer: The Person named as servicer or sub-servicer in any agreement
between the Servicer and such Person by which such Person is contractually
obligated to perform on the Servicer's behalf all or a part of the servicing
obligations described herein.

     Substitute Lease: An Eligible Lease substituted by Vendor Services for (a)
a Liquidated Lease, (b) a Prepaid Lease, (c) a Warranty Lease or (d) an Adjusted
Lease, in accordance with Section 9.2.

     Total Servicing Fee: The sum of the Servicing Fee, the Administrative Fees,
any applicable Additional Servicer Compensation and any earnings on the
investment of amounts in the Servicing Account.

     Transfer Agreement: The Transfer Agreement, dated as of July 1, 2000,
between Vendor Services and the Contributor.

     Trust Accounts: The Collection Account, the Servicing Account, the Residual
Account, the Reserve Account, the Insurance, Maintenance and Tax Accounts, the
Portfolio Expense Account, the Security Deposit Account and such other accounts
as may be established in the name of the Issuer or the Trustee pursuant to the
Indenture or this Agreement.

     Trustee: The Person acting as Trustee under the Indenture, its successors
in interest and any successor Trustee under the Indenture.

     Trustee Fee: 0.015% per annum, with a minimum of $2,500 per month.

     UCC: The Uniform Commercial Code as in effect in the relevant jurisdiction.

     Vendor Services: Conseco Finance Vendor Services Corporation, a Delaware
corporation.

     Warranty Lease: A Lease subject to repurchase by Vendor Services pursuant
to Section 2.6.

     SECTION 1.2. Usage of Terms. With respect to all terms used in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other gender; references to "writing" include
printing, typing, lithography, and other means of reproducing

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words in a visible form; references to agreements and other contractual
instruments include all subsequent amendments thereto or changes therein entered
into in accordance with their respective terms and not prohibited by this
Agreement; references to Persons include their permitted successors and assigns;
and the terms "include" or "including" mean "include without limitation" or
"including without limitation."

     SECTION 1.3. Calculations. All calculations of the Principal Balance of any
Lease and of the amount of the Servicing Fee shall be made on the basis of a
360-day year consisting of twelve 30-day months. All references to the Principal
Balance of a Lease as of any date shall refer to the close of business on such
date.

     SECTION 1.4. Section References. All references to Articles, Sections,
paragraphs, subsections, exhibits and schedules shall be to such portions of
this Agreement unless otherwise specified.

     SECTION 1.5. No Recourse. No recourse may be taken, directly or indirectly,
under this Agreement or any certificate or other writing delivered in connection
herewith or therewith, against any stockholder, officer or director, as such, of
the Contributor, Vendor Services, the Servicer or the Trustee or of any
predecessor or successor of the Contributor, Vendor Services, the Servicer or
the Trustee.

                                   ARTICLE II

                              CONVEYANCE OF LEASES

     SECTION 2.1. Conveyance of Leases and Related Assets. (a) Subject to the
terms and conditions of this Agreement, the Contributor, pursuant to the
mutually agreed upon terms contained herein, hereby transfers, assigns, and
otherwise conveys to the Issuer, without recourse (but without limitation of its
obligations in this Agreement), as of the Closing Date, all of the right, title
and interest, including any security interest, whether now owned or hereafter
acquired, of the Contributor in and to the following:

               (i) the Leases, including, without limitation, (A) all monies at
          any time paid or payable thereon or in respect thereof from and after
          the Initial Cut-Off Date or, in the case of Substitute Leases, the
          applicable Cut-Off Date, in the form of (1) Scheduled Payments
          (including those Scheduled Payments due prior to, but not received as
          of, the Cut-Off Date, but excluding those Scheduled Payments due on or
          after, but received prior to, the Cut-Off Date), (2) Prepayments, (3)
          Liquidation Proceeds (including all net proceeds from the disposition
          of the related Equipment), (4) Extension Fees, (5) payments to be
          applied by the Servicer to the payment of insurance charges,
          maintenance, taxes or other similar obligations, and (6) payments to
          be retained by the Servicer in payment of Administrative Fees, (B) all
          rights of the lessor or the secured party, as the case may be, in all
          present or future leases and other contracts relating

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          to the Equipment and all revenues, payments, rights to payment,
          profits, accounts, chattel paper, products and contract rights arising
          from or related to such Equipment or any use thereof or from any such
          lease or other contract, (C) all rights of the lessor or secured
          party, as the case may be, in all Insurance Policies and any other
          security (other than any ownership interest of the lessor in the
          Equipment) for the payment of amounts due under the Leases (including
          all rights, if any, the lessor or the secured party may have against
          vendors and other third parties for payments of such amounts) and (D)
          all items contained in the related Lease Files and any and all other
          documents that are kept on file in accordance with Vendor Services'
          customary procedures relating to the Leases;

               (ii) all funds on deposit from time to time in the Trust Accounts
          and all investments therein and proceeds thereof;

               (iii) the Transfer Agreement;

               (iv) the Residual Realizations; and

               (v) any and all proceeds of the foregoing;

     The foregoing does not constitute, nor is it intended to result in, the
     creation or assumption by the Issuer, the Trustee or any Noteholder of any
     obligation of the Contributor, the Servicer or any other Person in
     connection with the Leases or the related Equipment or any agreement or
     instrument relating thereto, including any obligation to the Obligors.

          (b) As security for the payment of amounts described in Section
     2.1(a)(i)(3) and 2.1(a)(iv), the Contributor hereby grants to the Issuer a
     security interest in all of the right, title and interest, whether now
     owned or hereafter acquired, of the Contributor in and to the Equipment and
     all proceeds thereof.

          (c) The execution and delivery of this Agreement shall constitute an
     acknowledgment by each of the Contributor and the Issuer that they intend
     that each assignment and transfer herein contemplated constitute an
     assignment outright, and not for security, of the property described in
     Section 2.1(a), conveying good title thereto free and clear of any Liens,
     from the Contributor to the Issuer, and that all such property shall not be
     a part of the estate of the Contributor in the event of the bankruptcy,
     reorganization, arrangement, insolvency or liquidation proceeding, or other
     proceeding under any federal or state bankruptcy or similar law, or the
     occurrence of another similar event, of, or with respect to the
     Contributor. In the event that such conveyance is determined to be made as
     security for a loan made by the Issuer or the Noteholders to the
     Contributor, the Contributor hereby grants to the Issuer a security
     interest in all of the Contributor's right, title and interest in and to
     the property described in Section 2.1(a) to secure the loan determined to
     have been made to the Contributor and the payment and performance of the
     other obligations of the Contributor under this Agreement, and agrees that
     in such event this Agreement shall constitute a security agreement under
     applicable law.

                                      -11-
<PAGE>

     SECTION 2.2. Custody of Lease Files.

          (a) The Issuer hereby appoints the Servicer, and the Servicer hereby
     accepts such appointment, to act as the agent of the Issuer as custodian of
     the following documents or instruments (with respect to each Lease), which
     will be, as of the Closing Date (or, in the case of a Substitute Lease, as
     of the date of substitution in accordance with Section 9.2), in the
     possession of the Servicer or its agents:

               (i) the fully executed original of the Lease (together with any
          agreements modifying the Lease, including, without limitation, any
          extension agreements);

               (ii) all documents related to the Leases;

               (iii) documents evidencing or related to any Insurance Policy, or
          copies thereof; and

               (iv) such documents, if any, that Vendor Services keeps on file
          in accordance with its customary procedures indicating that the
          Equipment is owned or leased by the Obligor and subject to the
          interest of the lessor or secured party.

          (b) The Servicer agrees to maintain the Lease Files at the locations
     where they are currently maintained, or at such other locations as shall
     from time to time be identified to the Trustee by written notice. The
     Servicer may temporarily move individual Lease Files or any portion thereof
     without notice as necessary to conduct collection and other servicing
     activities in accordance with its customary practices and procedures.

          (c) As custodian, the Servicer shall have and perform the following
     powers and duties:

               (i) hold the Lease Files on behalf of the Contributor, the
          Issuer, the Noteholders and the Trustee, maintain accurate records
          pertaining to each Lease to enable it to comply with the terms and
          conditions of this Agreement and the Related Documents, maintain a
          current inventory thereof and certify to the Trustee annually that it
          continues to maintain possession of such Lease Files;

               (ii) implement written policies and procedures with respect to
          persons authorized to have access to the Lease Files and the
          receipting for Lease Files taken from their storage area by an
          employee of the Servicer for purposes of servicing or any other
          purposes; and

               (iii) attend to all details in connection with maintaining
          custody of the Lease Files on behalf of the Contributor, the Issuer,
          the Noteholders and the Trustee.

                                      -12-
<PAGE>

          (d) In performing its duties under this Section, the Servicer agrees
     to service the Leases in accordance with customary and usual procedures of
     institutions which service equipment Leases, installment sale contracts,
     promissory notes, loan and security agreements and other similar types of
     receivables comparable to the Leases and, to the extent more exacting, the
     degree of skill and attention that the Servicer exercises from time to time
     with respect to all comparable such contracts that it services for itself
     or others. The Servicer shall promptly report to the Trustee any failure by
     it to hold the Lease Files as herein provided and shall promptly take
     appropriate action to remedy any such failure. In acting as custodian of
     the Lease Files, the Servicer agrees further not to assert any beneficial
     ownership interests in the Leases or the Lease Files. The Servicer agrees
     to indemnify the Contributor, the Issuer, the Noteholders and the Trustee
     for any and all liabilities, obligations, losses, damages, payments, costs
     or expenses of any kind whatsoever which may be imposed on, incurred or
     asserted against the Contributor, the Issuer, the Noteholders or the
     Trustee as the result of any act or omission by the Servicer relating to
     the maintenance and custody of the Lease Files; provided, however, that the
     Servicer will not be liable for any portion of any such amount resulting
     from the negligence or willful misconduct of the Contributor, the Issuer,
     any Noteholder or the Trustee.

     SECTION 2.3. Further Assurances. Following the Closing Date, the
Contributor shall, at the reasonable request of the Trustee or the Servicer, and
at the Contributor's expense, execute and deliver any further instruments of
transfer or other documents, and shall take all such other actions that may be
necessary, appropriate or desirable, to fully convey the Leases and the Related
Assets to the Issuer or otherwise to evidence, effectuate or implement the
transactions contemplated hereby. In addition, the Contributor, as agent for the
Issuer, shall defend the Leases and the Related Assets against any and all
claims and demands of all Persons at any time claiming the same or any interest
therein adverse to that of the Issuer.

     SECTION 2.4. Representations and Warranties of Contributor. By its
execution of this Agreement, the Contributor makes the following representations
and warranties. Unless otherwise specified, such representations and warranties
speak as of the Closing Date.

          (a) Organization and Good Standing. The Contributor has been duly
     organized and is validly existing as a corporation in good standing under
     the laws of the State of Minnesota, with power and authority to own its
     properties and to conduct its business as such properties are currently
     owned and such business is currently conducted, and had at all relevant
     times, and now has, power, authority and legal right to acquire, own and
     transfer the Leases and the other property transferred to the Issuer.

          (b) Due Qualification. The Contributor is duly qualified to do
     business as a foreign corporation in good standing, and has obtained all
     necessary licenses and approvals, in all jurisdictions where the failure to
     do so would materially and adversely affect the performance of its
     obligations under this Agreement and the Related Documents.

          (c) Power and Authority. The Contributor has the power and authority
     to execute and deliver this Agreement and the Contributor's Related
     Documents and to carry out

                                      -13-
<PAGE>

     the terms hereof and thereof; the Contributor has full power and authority
     to transfer and assign the Trust Assets to be transferred and assigned to
     and deposited with the Issuer by it and has duly authorized such transfer
     and assignment to the Issuer by all necessary corporate action; and the
     execution, delivery and performance of this Agreement and the Contributor's
     Related Documents have been duly authorized by the Contributor by all
     necessary corporate action.

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

          (e) Valid Transfer; Binding Obligations. This Agreement effects, as of
     the Closing Date, a valid transfer and assignment of the Leases and the
     other Trust Assets, enforceable against the Contributor and creditors of
     and purchasers from the Contributor; and this Agreement and the
     Contributor's Related Documents, when duly executed and delivered, shall
     constitute legal, valid and binding obligations of the Contributor
     enforceable in accordance with their respective terms, except as
     enforceability may be limited by bankruptcy, insolvency, reorganization or
     other similar laws affecting the enforcement of creditors' rights generally
     and by equitable limitations on the availability of specific remedies,
     regardless of whether such enforceability is considered in a proceeding in
     equity or at law.

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

          (g) No Proceedings. There are no proceedings or investigations pending
     or, to the Contributor's knowledge, threatened against the Contributor,
     before any court, regulatory body, administrative agency or other tribunal
     or governmental instrumentality having jurisdiction over the Contributor or
     its properties (A) asserting the invalidity of this Agreement or any of the
     Related Documents, (B) seeking to prevent the consummation of any of the
     transactions contemplated by this Agreement or any of the Related
     Documents, (C) seeking any determination or ruling that might materially
     and adversely affect the performance by the Contributor of its obligations
     under, or the validity or enforceability of, this Agreement or any of

                                      -14-
<PAGE>

     the Related Documents, or (D) seeking to adversely affect (i) the federal
     income tax or other federal, state or local tax attributes of the Notes or
     (ii) the federal, state or local tax treatment of any of the transactions
     contemplated by this Agreement and the Related Documents.

          (h) Place of Business. The principal executive offices of the
     Contributor, and the offices where the Contributor keeps its records
     concerning the Leases and related documents, are located at 1100 Landmark
     Towers, 345 St. Peter Street, St. Paul, Minnesota 55102.

          (i) Registration Statement. No stop order suspending the effectiveness
     of the Registration Statement relating to the Notes has been issued, and no
     proceeding for that purpose has been instituted or is threatened, by the
     Securities and Exchange Commission.

          (j) Filings. Since the effective date of the Registration Statement
     relating to the Notes, there has occurred no event required to be set forth
     in an amendment or supplement to the Registration Statement or Prospectus
     that has not been so set forth, and there has been no document required to
     be filed under the Securities Exchange Act of 1934 and the rules and
     regulations of the Securities and Exchange Commission thereunder that upon
     such filing would be deemed to be incorporated by reference in the
     Prospectus that has not been so filed.

          (k) Good Title. Immediately prior to the transfer and assignment of
     the Leases and Related Assets to the Issuer pursuant to Section 2.1(a), the
     Contributor had good title thereto and was the sole owner thereof (subject,
     in the case of amounts in the Insurance, Maintenance and Tax Accounts, to
     the rights of the Obligors therein), free of any Lien. Upon the transfer
     and assignment of the Leases and Related Assets to the Issuer pursuant to
     Section 2.1(a), the Issuer will have good title thereto and will be the
     sole owner thereof (subject, in the case of amounts in the Insurance,
     Maintenance and Tax Accounts, to the rights of the Obligors therein), free
     of any Lien.

          (l) No Impairment. No person has a participation in or other right to
     receive Scheduled Payments under any Lease, and the Contributor has taken
     no action to convey any right to any Person that would result in such
     Person having a right to Scheduled Payments received with respect to any
     Lease.

          (m) Lawful Assignment. No Lease was originated in, or is subject to
     the laws of, any jurisdiction the laws of which would make unlawful, void
     or voidable the transfer and assignment of such Lease from the Contributor
     to the Issuer under this Agreement. Each Lease may be sold, assigned and
     transferred by the Contributor to the Issuer without the consent of, or
     prior approval from, or any notification to, the applicable Obligor, other
     than (i) certain Leases (which, in proportion to the aggregate of all of
     the Leases, are not material) that require notification of the assignment
     to the Obligor, which notification will be given by the Servicer not later
     than 10 days following the Closing Date, and (ii) certain Leases (which, in
     proportion to the aggregate of all of the Leases, are not material) that
     require the consent of the

                                      -15-
<PAGE>

     Obligor, which consent will be obtained by the Servicer not later than 10
     days following the Closing Date.

          (n) All Filings Made. All filings and other actions required to be
     made, taken or performed by any Person in any jurisdiction to give the
     Issuer a first priority perfected lien or ownership interest in the Leases
     has been made, taken or performed.

          (o) Schedule of Leases Accurate. The information with respect to the
     Leases contained in the Schedule of Leases is true and correct in all
     material respects.

     SECTION 2.5. Nonpetition Covenant. None of the Contributor, the Servicer,
nor Vendor Services shall petition or otherwise invoke the process of any court
or government authority for the purpose of commencing or sustaining a case
against the Issuer or the Contributor under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Issuer or the
Contributor or any substantial part of its property, or ordering the winding up
or liquidation of the affairs of the Issuer or the Contributor.

     SECTION 2.6. Repurchase of Leases Upon Breach of Representations and
Warranties. Concurrently with the execution and delivery of this Agreement,
Vendor Services and the Contributor have entered into the Transfer Agreement,
the rights of the Contributor under which have been assigned by the Contributor
to the Issuer pursuant to Section 2.1(a). Under the Transfer Agreement, Vendor
Services has made certain representations and warranties to the Contributor with
respect to the Leases (the "Representations and Warranties"). As of the second
Deposit Date following its discovery or its receipt of notice of any breach of
the Representations and Warranties that materially and adversely affects the
value of any Lease (including any Liquidated Lease), Vendor Services shall,
unless such breach shall have been cured in all material respects, either (A)
(i) repurchase such Lease from the Issuer and (ii) repurchase the related
Equipment from the Contributor or (B) substitute a Substitute Lease for such
Lease and the related Equipment. On or before the related Deposit Date, Vendor
Services shall pay the Purchase Amount to the Servicer and the Contributor, as
their interests may appear, or substitute a Substitute Lease. The obligations of
the Contributor with respect to any such breach of representations and
warranties shall be limited to taking any and all actions necessary to enable
the Issuer or the Trustee to enforce directly the obligations of Vendor Services
to repurchase the applicable Lease and Equipment under the Transfer Agreement.
It is understood and agreed that, except as set forth in the following
paragraph, the obligation of Vendor Services to repurchase or substitute another
Lease for any Lease, together with the related Equipment, as to which a breach
has occurred and is continuing shall, if such obligation is fulfilled,
constitute the sole remedy against Vendor Services for such breach available to
the Contributor or the Trustee on behalf of the Noteholders and to the
Contributor, as their interests may appear.

     In addition to the foregoing and notwithstanding whether the Lease and
related Equipment shall have been repurchased by Vendor Services, Vendor
Services shall indemnify the Contributor, the Issuer, the Noteholders and the
Trustee against all costs, expenses, losses, damages, claims and liabilities,
including reasonable fees and expenses of counsel, which may be asserted against

                                      -16-
<PAGE>

or incurred by any of them as a result of third party claims arising out of the
events or facts giving rise to such breach.

                                   ARTICLE III

                     ADMINISTRATION AND SERVICING OF LEASES

     SECTION 3.1. Duties of the Servicer. The Servicer is hereby authorized to
act as agent for the Issuer and the Contributor and in such capacity shall
manage, service, administer and make collections on the Leases, and perform the
other actions required by the Servicer under this Agreement. The Servicer agrees
that its servicing of the Leases shall be carried out in accordance with
customary and usual procedures of institutions which service equipment lease
contracts, installment sale contracts, promissory notes, loan and security
agreements and other similar types of receivables comparable to the Leases and,
to the extent more exacting, the degree of skill and attention that the Servicer
exercises from time to time with respect to all comparable such contracts that
it services for itself or others. In performing such duties, so long as Vendor
Services is the Servicer, it shall comply in all material respects with its
customary standards, policies and procedures in effect from time to time. The
Servicer may at any time change its customary standards, policies and
procedures; provided that any such change shall not materially impair the
collectibility of any Lease nor the Servicer's ability to perform its
obligations under this Agreement and the Related Documents. The Servicer's
duties shall include, without limitation, billing, collection and posting of all
payments, responding to inquiries of Obligors on the Leases, investigating
delinquencies, sending invoices to Obligors, accounting for collections and
furnishing monthly and annual statements to the Issuer and the Trustee with
respect to distributions, monitoring the status of Insurance Policies with
respect to the Equipment and performing the other duties specified herein. The
Servicer shall also administer and enforce all material rights and
responsibilities of the lessor or secured party under the Leases and provided
for in the Insurance Policies, to the extent that such Insurance Policies relate
to the Leases, the Equipment or the Obligors. To the extent consistent with the
standards, policies and procedures otherwise required hereby, the Servicer shall
follow its customary standards, policies and procedures and shall have full
power and authority to do any and all things in connection with such managing,
servicing, administration and collection that it may deem necessary or
desirable, including the authority to forego collection efforts under
circumstances deemed appropriate by the Servicer in accordance with its
customary standards, policies and procedures. Without limiting the generality of
the foregoing, the Servicer is hereby authorized and empowered by the Issuer to
execute and deliver, on behalf of the Contributor and the Issuer or either of
them, any and all instruments of satisfaction or cancellation, or of partial or
full release or discharge, and all other comparable instruments, with respect to
the Leases and with respect to the Equipment in accordance with its customary
standards, policies and procedures. The Servicer is hereby authorized to
commence, in its own name (or in the name of the Issuer, provided the Servicer
has obtained the Issuer's consent, which consent shall not be unreasonably
withheld), a legal proceeding to enforce a Lease pursuant to Section 3.3 or to
commence or participate in any other legal proceeding (including, without
limitation, a bankruptcy proceeding) relating to or involving a Lease, an
Obligor or the related Equipment. If the Servicer commences or participates in
such a legal proceeding

                                      -17-
<PAGE>

in its own name, the Issuer shall thereupon be deemed to have automatically
assigned such Lease to the Servicer solely for purposes of commencing or
participating in any such proceeding as a party or claimant, and the Servicer is
authorized and empowered by the Issuer to execute and deliver in the Servicer's
name any notices, demands, claims, complaints, responses, affidavits or other
documents or instruments in connection with any such proceeding. The Issuer
shall furnish the Servicer with any powers of attorney and other documents which
the Servicer may reasonably request and which the Servicer deems necessary or
appropriate and take any other steps which the Servicer may deem necessary or
appropriate to enable the Servicer to carry out its servicing and administrative
duties under this Agreement.

     SECTION 3.2. Collection of Lease Payments; Modifications of Leases.

          (a) Consistent with the standards, policies and procedures required by
     this Agreement, the Servicer shall make reasonable efforts to collect all
     payments called for under the terms and provisions of the Leases as and
     when the same shall become due, and shall follow such collection procedures
     as it follows with respect to all comparable contracts that it services for
     itself or others and otherwise act with respect to the Leases, the related
     Equipment, the Insurance Policies and the other Trust Assets in such manner
     as will, in the reasonable judgment of the Servicer, maximize the amount to
     be received by the Issuer and the Contributor with respect thereto. The
     Servicer is authorized in its discretion to waive any Administrative Fees
     or Extension Fees that may be collected in the ordinary course of servicing
     any Lease.

          (b) The Servicer may at any time agree to a modification or amendment
     of a Lease in accordance with its credit and collection policies and
     procedures (it being acknowledged that any modification or amendment of a
     Lease resulting from a bankruptcy proceeding with respect to the Obligor
     will not be deemed to have been agreed to by the Servicer hereunder):

               (i) in order to (A) change the Obligor's regular due date to a
          date within the Collection Period in which such due date occurs or (B)
          re-amortize (over the remainder of the original term) the Scheduled
          Payments on a Lease following a partial Prepayment (provided that the
          sum of such partial Prepayment and the Principal Balance of the Lease
          after the re-amortization is at least equal to the Required Payoff
          Amount for such Lease prior to the partial Prepayment), or

               (ii) for any other purpose, provided that no such modification or
          amendment shall:

                    (A) change the amount or the due date of any Scheduled
               Payment (except as provided in clauses (i)(A) and (B) above,
               Section 3.2(c) or Section 3.2(d)),

                    (B) release the related Equipment from the Lease, unless (1)
               equipment of equal or greater value is substituted, (2) the
               remaining related Equipment has a value at least equal to the
               Required Payoff Amount of the Lease, or (3) the release is
               pursuant

                                      -18-
<PAGE>

               to a partial Prepayment (which, in the case of a partial
               Prepayment on a Lease, meets the requirements of Section 3.2(d))
               and the ratio of the value of the related Equipment to the
               Principal Balance of the Lease after such Prepayment and release
               is at least equal to such ratio prior to such Prepayment and
               release;

                    (C) cause any of the representations or warranties contained
               in the Representations and Warranties to cease to be true; or

                    (D) except as provided in clause (ii)(A) above, result in
               the Principal Balance or Required Payoff Amount of the Lease
               being less than it would have been absent such modification or
               amendment.

          (c) The Servicer may grant payment extensions on a Lease in accordance
     with its credit and collection policies and procedures (it being
     acknowledged that any extensions on a Lease resulting from a bankruptcy
     proceeding with respect to the Obligor will not be deemed to have been
     granted by the Servicer hereunder) if the Servicer believes in good faith
     that such extension is necessary to avoid a termination and liquidation of
     such Lease and will maximize the amount to be received by the Issuer with
     respect to such Lease; provided, however, that:

               (i) the aggregate period of all extensions granted on a Lease
          shall not exceed six months; and

               (ii) in no event may any Lease be extended beyond the Collection
          Period immediately preceding the final Stated Maturity Date.

     Nothing in this Section 3.2(c) shall be deemed to prevent the Servicer from
     extending or renewing, or otherwise accepting the continued performance by
     the Obligor under, a Lease after expiration of its stated term.

          (d) The Servicer may, in its discretion, allow a Prepayment, in whole
     or in part, of any Lease which, by its terms, is not prepayable, but only
     if the amount of such Prepayment (or, in the case of a partial Prepayment,
     the sum of such Prepayment and the remaining Principal Balance of the Lease
     after application of such Prepayment), together with such additional
     amounts as are (i) available to the Servicer for the purpose of prepaying
     such Lease (excluding any monies otherwise constituting Pledged Revenues)
     and (ii) deposited in the Collection Account in respect of such Lease
     contemporaneously with the deposit therein of such Prepayment, is at least
     equal to the Required Payoff Amount for such Lease.

          (e) The Servicer shall remit all payments by or on behalf of the
     Obligors (other than amounts constituting Administrative Fees) received by
     the Servicer to the Servicing Account as soon as practicable, but in no
     event later than the second Business Day after receipt thereof.

                                      -19-
<PAGE>

          (f) If the Servicer agrees to a modification, amendment or extension
     of a Lease not permitted by Sections 3.2(b) or 3.2(c), the Servicer shall,
     on the next Deposit Date, either (i) repurchase such Adjusted Lease in
     accordance with Section 2.6, or (ii) deliver a Substitute Lease therefor in
     accordance with Article IX.

     SECTION 3.3. Realization Upon Leases. Consistent with the standards,
policies and procedures required by this Agreement, the Servicer shall, except
as provided in the following paragraph, take such action as is reasonably
necessary (including making commercially reasonable efforts to repossess (or
otherwise comparably convert the ownership of) and dispose of the related
Equipment) to collect from the Obligor or otherwise all amounts payable under
any Lease as to which the Obligor is in default in the making of one or more
Scheduled Payments thereunder, if the Servicer has determined such default is
not likely to be cured. The Servicer will not be required to repossess (or
otherwise comparably convert the ownership of) any Equipment the repossession of
which, in accordance with the Servicer's credit and collection policies and
procedures, and based on the Servicer's good faith estimate of the value of the
Equipment and its availability, would not be reasonable. The Servicer is
authorized to follow such customary practices and procedures as it shall deem
necessary or advisable, consistent with the standard of care required by Section
3.1, which practices and procedures may include the sale of the related
Equipment at public or private sale, the submission of claims under an Insurance
Policy and other actions by the Servicer in order to realize upon such a Lease.
The foregoing is subject to the provision that, in any case in which the
Equipment shall have suffered damage, the Servicer shall not expend funds in
connection with any repair or towards the repossession of such Equipment unless
it shall determine in its reasonable judgment that such repair and/or
repossession shall increase the proceeds of liquidation of the related Lease by
an amount greater than the amount of such expenses. All amounts received upon
liquidation of a Lease (except as otherwise provided below), including any
proceeds derived from the disposition of the related Equipment, shall be
remitted by the Servicer to the Servicing Account as soon as practicable, but in
no event later than the second Business Day after receipt thereof. The Servicer
shall, to the extent the proceeds of such liquidation are sufficient therefor,
be entitled to recover all reasonable out-of-pocket expenses incurred by it in
the course of liquidating a Lease, which amounts may be retained by the Servicer
from such proceeds (and shall not be required to be deposited as provided in
Section 3.2(e)) to the extent of such expenses. The Servicer shall be entitled
to retain in the Servicing Account, from liquidation proceeds, a reserve for
out-of-pocket liquidation expenses in an amount equal to such expenses, in
addition to those previously incurred, as it reasonably estimates will be
incurred. Upon completion of such liquidation, the remainder of any such
reserve, after reimbursement to the Servicer of all out-of-pocket liquidation
expenses, shall constitute Liquidation Proceeds and be transferred as provided
in Section 4.2(a). The Servicer shall, in accordance with Section 3.4(f), pay on
behalf of the Issuer and the Contributor any sales, use, personal property and
other taxes assessed on repossessed Equipment, as well as any sales or similar
taxes on the disposition thereof, and shall be entitled to reimbursement of any
such tax from liquidation proceeds with respect to the related Lease as provided
in Section 3.4(b).

     The Servicer will use its best efforts to sell or re-lease any Equipment
upon the termination of the Lease to which such Equipment is subject (whether as
a result of early termination

                                      -20-
<PAGE>

following an Obligor default or upon scheduled expiration of the Lease), in a
timely manner and in a manner so as to maximize, to the extent possible under
the prevailing market conditions, the net proceeds of such Equipment. The
Servicer may, in its discretion, choose to dispose of Equipment through a new
lease or in some other manner which provides for payment for the Equipment over
time. In any such event (other than permitting continued payments by the Obligor
beyond the scheduled expiration date of the Lease), the Servicer will be
required to pay from its own funds, and deposit in the Servicing Account, an
amount which, in its reasonable judgment, is equal to the fair market value of
such Equipment (less any related out-of-pocket liquidation expenses), and the
Servicer will be entitled to all payments received thereafter in respect of such
Equipment. Any such amounts so deposited by the Servicer shall be treated as
additional Liquidation Proceeds, or Residual Realizations, depending on the
reason for the disposition of the Equipment, with respect to the related Lease
and Equipment.

     SECTION 3.4. Insurance, Maintenance and Taxes.

          (a) The Servicer shall establish one or more insurance, maintenance
     and tax accounts (collectively, the "Insurance, Maintenance and Tax
     Accounts") in the name of the Servicer and for the benefit of the
     respective Obligors and, to the extent provided herein, the Issuer and the
     Contributor. The Servicer shall deposit into the Insurance, Maintenance and
     Tax Accounts any payments made by or on behalf of Obligors which constitute
     (i) insurance charges paid by an Obligor to the lessor or secured party
     under a Lease (unless paid directly by such insurance company or comparable
     third party directly to the Obligor), (ii) any insurance payments or
     recoveries paid by an insurance company or comparable third party and
     related to the damage to, or destruction of, the Equipment related to such
     Lease (unless paid directly by such insurance company or comparable third
     party directly to the Obligor), (iii) any payments made by or on behalf of
     Obligors which constitute amounts paid by an Obligor to the lessor or
     secured party under a Lease in respect of the maintenance of the related
     Equipment, and (iv) taxes paid by the Obligor with respect to the related
     Lease or Equipment (except for any such payments in respect of taxes which
     were paid by Vendor Services prior to the Cut-Off Date, which payments
     shall constitute Scheduled Payments hereunder). None of the foregoing
     payments shall constitute Pledged Revenues except under the circumstances
     described in clause (c)(ii) below.

          (b) The Servicer may pay from its own funds, or may withdraw amounts
     from the Insurance, Maintenance and Tax Accounts, when and if appropriate,
     to pay, when due (i) all insurance charges in the amounts received under
     clause (a)(i) above, (ii) any amounts payable under any applicable
     maintenance contract or otherwise with respect to the maintenance of the
     related Equipment in the amounts received under clause (a)(iii) above, and
     (iii) all taxes in the amounts received under clause (a)(iv) above. If the
     Servicer has paid any such insurance charges, maintenance costs or taxes
     from its own funds (including any such amounts that may have been paid
     prior to the Closing Date), the Servicer shall be entitled to reimbursement
     therefor from any appropriate amounts available therefor in the Insurance,
     Maintenance and Tax Accounts, from payments thereafter received from the
     applicable Obligor in respect thereof or from liquidation proceeds in the
     event such Lease is liquidated. The Servicer is authorized in its
     discretion to waive its right to receive reimbursement of any such amount.

                                      -21-
<PAGE>

          (c) Amounts on deposit in the Insurance, Maintenance and Tax Accounts
     which represent amounts received by the Servicer pursuant to clause (a)(ii)
     above shall be applied by the Servicer as follows: (i) if equipment is
     purchased to replace the Equipment that was damaged or destroyed, and such
     replacement equipment is (in the reasonable opinion of the Servicer) of
     comparable use and equivalent value to the Equipment that was damaged or
     destroyed, or if the Equipment is to be repaired, the Servicer shall
     release such amount so received from the insurance company or comparable
     third party in payment or reimbursement for such replacement equipment or
     such repair; and (ii) if such replacement option is not exercised or the
     Equipment is not to be repaired, then the Servicer shall treat such amount
     as Liquidation Proceeds (after netting any amounts therefrom as is provided
     pursuant to the definition of "Liquidation Proceeds" herein) and transfer
     such amount from the Insurance, Maintenance and Tax Accounts to the
     Collection Account.

          (d) The Servicer may sue to enforce or collect upon the Insurance
     Policies, in its own name, if possible, or as agent of the Issuer and the
     Contributor. If the Servicer elects to commence a legal proceeding to
     enforce an Insurance Policy, the act of commencement shall be deemed to be
     an automatic assignment of the rights of the Issuer and the Contributor
     under such Insurance Policy to the Servicer for purposes of collection
     only. If, however, in any enforcement suit or legal proceeding it is held
     that the Servicer may not enforce an Insurance Policy on the grounds that
     it is not a real party in interest or a holder entitled to enforce the
     Insurance Policy, the Issuer, on behalf of the Contributor, shall take such
     steps as the Servicer deems necessary to enforce such Insurance Policy,
     including bringing suit in its name or the name of the Trustee for the
     benefit of the Noteholders.

          (e) Consistent with its customary standards, policies and procedures,
     with respect to each Lease, the Servicer shall maintain insurance against
     casualty loss with respect to any Equipment financed by or leased pursuant
     to the Lease, to the extent the Lease requires the lessor or secured party
     under the Lease to maintain such insurance, and shall otherwise require the
     Obligor under the Lease to maintain such insurance, to the extent the Lease
     requires that such insurance be maintained by the Obligor. The Servicer
     shall not otherwise be liable to the Issuer, the Trustee, the Contributor
     or any Noteholder for any casualty loss with respect to any Equipment
     related to a Lease, except to the extent otherwise explicitly provided in
     this Agreement.

          (f) The Servicer shall determine and pay when due all sales, use,
     personal property and other taxes payable in respect of the Equipment
     related to each Lease. To the extent the Servicer has previously received
     from the related Obligor payments with respect to such taxes and has
     deposited such payments in the Insurance, Maintenance and Tax Accounts in
     accordance with clause (a)(iv) above, the Servicer shall, in accordance
     with clause (b)(iii) above, either (i) pay such taxes from amounts
     withdrawn from the Insurance, Maintenance and Tax Accounts, or (ii) pay
     such taxes from its own funds and thereafter reimburse itself from amounts
     withdrawn from the Insurance, Maintenance and Tax Accounts. In the event
     the Servicer has not previously received payments from the Obligor for this
     purpose, or to the extent any such payments received were insufficient to
     pay the taxes due, the Servicer shall nonetheless pay such taxes from its
     own funds and shall bill the Obligor for any amounts so paid. The Servicer
     shall be entitled to reimbursement for any taxes so paid from its own
     funds, as provided in clause (b)(iii) above. Failure on the part of the
     Servicer to perform its duties in a timely

                                      -22-
<PAGE>

     fashion under this clause shall constitute a breach of this Agreement by
     the Servicer for which indemnity will be available in accordance with
     Section 7.1.

          (g) The Servicer shall give prompt written notice to the Trustee of
     the Servicer's failure to pay when due any insurance charge or tax payment
     required to be paid pursuant to this Section 3.4 and the reason for such
     failure. Upon receipt of any such notice, or if the Trustee has otherwise
     received notice of any such failure to pay an insurance charge or tax
     payment, the Trustee shall take such actions as are reasonably necessary
     (including the withdrawal of monies, if any, available therefor in the
     Insurance, Maintenance and Tax Accounts and attributable to payments
     previously made by the related Obligor and payment of such insurance charge
     or tax payment) to cause any such amounts to be paid. The Trustee shall be
     permitted to withdraw monies from the Insurance, Maintenance and Tax
     Accounts for purposes of performing its obligations under this paragraph,
     but shall not, in any event, be required to use its own funds for such
     purposes.

     SECTION 3.5. Maintenance of Security Interests in Equipment. To the extent
the Servicer's credit and collection policies and procedures in this regard
would so require (it being acknowledged that, in certain instances, such credit
and collection policies and procedures would not so require), the Servicer shall
take such steps as are necessary to maintain perfection of any security interest
created by each Lease in the related Equipment on behalf of the Issuer and the
Contributor, including, but not limited to, obtaining the execution by the
Obligors and the recording, registering, filing, re-recording, re-filing, and
re-registering of all security agreements, financing statements and continuation
statements as are necessary to maintain such security interest granted by the
Obligors under the respective Leases. The Issuer hereby authorizes the Servicer,
and the Servicer agrees (to the extent the Servicer's credit and collection
policies and procedures in this regard would so require), to take any and all
steps necessary to re-perfect such security interest on behalf of the Issuer and
the Contributor as necessary because of the relocation of Equipment or for any
other reason.

     SECTION 3.6. Covenants, Representations, and Warranties of Servicer. By its
execution and delivery of this Agreement, the Servicer makes the following
representations, warranties and covenants.

          (a) The Servicer covenants as follows:

               (i) Liens in Force. The Equipment securing each Lease shall not
          be released in whole or in part from any interest the lessor or
          secured party may have in such Equipment under the terms of the Lease,
          except upon payment in full of the Lease or as otherwise contemplated
          herein;

               (ii) No Impairment. The Servicer shall do nothing to impair the
          rights of the Issuer, the Contributor or the Noteholders in the
          Leases, the Insurance Policies or the other Trust Assets; and

                                      -23-
<PAGE>

               (iii) No Amendments. The Servicer shall not extend or otherwise
          amend the terms of any Lease with respect to the Scheduled Payments
          thereon, except (A) in accordance with Section 3.2, or (B) at such
          time as the Notes are no longer Outstanding, with the consent of the
          Issuer.

          (b) The Servicer represents, warrants and covenants as of the date of
     execution and delivery of this Agreement:

               (i) Organization and Good Standing. The Servicer has been duly
          organized and is validly existing and in good standing under the laws
          of its jurisdiction of organization, with power, authority and legal
          right to own its properties and to conduct its business as such
          properties are currently owned and such business is currently
          conducted, and had at all relevant times, and now has, power,
          authority and legal right to enter into and perform its obligations
          under this Agreement and the Servicer's Related Documents;

               (ii) Due Qualification. The Servicer is duly qualified to do
          business as a foreign corporation in good standing, and has obtained
          all necessary licenses and approvals, in all jurisdictions where the
          failure to do so would materially and adversely affect the performance
          of its obligations under this Agreement and the Related Documents;

               (iii) Power and Authority. The Servicer has the power and
          authority to execute and deliver this Agreement and to carry out the
          terms hereof; and the execution, delivery and performance of this
          Agreement and the Servicer's Related Documents have been duly
          authorized by the Servicer by all necessary corporate action;

               (iv) Binding Obligation. This Agreement and the Servicer's
          Related Documents shall each constitute the legal, valid and binding
          obligation of the Servicer enforceable in accordance with its terms,
          except as enforceability may be limited by bankruptcy, insolvency,
          reorganization or other similar laws affecting the enforcement of
          creditors' rights generally and by equitable limitations on the
          availability of specific remedies, regardless of whether such
          enforceability is considered in a proceeding in equity or at law;

               (v) No Violation. The execution and delivery of this Agreement,
          the consummation of the transactions contemplated by this Agreement
          and the Servicer's Related Documents, and the fulfillment of the terms
          hereof, shall not conflict with, result in any breach of any of the
          terms and provisions of, or constitute (with or without notice or
          lapse of time, or both) a default under, the articles of incorporation
          or bylaws of the Servicer, or any indenture, agreement, mortgage, deed
          of trust or other instrument to which the Servicer is a party or by
          which it is bound, or result in the

                                      -24-
<PAGE>

          creation or imposition of any Lien upon any of its properties pursuant
          to the terms of any such indenture, agreement, mortgage, deed of trust
          or other instrument, other than this Agreement or any Related
          Document, or violate any law, order, rule or regulation applicable to
          the Servicer of any court or of any federal or state regulatory body,
          administrative agency or other governmental instrumentality having
          jurisdiction over the Servicer or any of its properties;

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

               (vii) No Consents. The Servicer is not required to obtain the
          consent of any other party or any consent, license, approval or
          authorization, or registration or declaration with, any governmental
          authority, bureau or agency in connection with the execution,
          delivery, performance, validity or enforceability of this Agreement or
          any of the Servicer's Related Documents.

     SECTION 3.7. Sub-Servicers. The Servicer may, without the Issuer's or the
Trustee's consent, maintain or enter into one or more agreements with
Sub-Servicers for the servicing and administration of the Leases by such
Sub-Servicers. Notwithstanding the terms or existence of any such agreement
between the Servicer and a Sub-Servicer, the Servicer shall not be relieved of
any of its obligations under this Agreement by reason of such agreement and
shall be obligated to the same extent and under the same terms and conditions as
if the Servicer alone was servicing and administering the Leases, and neither
the Issuer nor the Trustee shall have any obligation to deal with anyone other
than the Servicer with respect to the servicing of the Leases.

     SECTION 3.8. Total Servicing Fee; Payment of Expenses by Servicer. On each
Payment Date, the Servicer shall be entitled to receive out of the Collection
Account the Servicing Fee for the related Collection Period and any unreimbursed
Servicer Advances or Nonrecoverable Servicer Advances in respect of a prior
Payment Date, pursuant to Section 8.03 of the Indenture. The Servicer shall be
entitled to retain, as additional servicing compensation under this Agreement,
any Administrative Fees and any earnings on the investment of amounts in the
Servicing Account. The Servicer shall be required to pay all expenses incurred
by it in connection with its activities under this

                                      -25-
<PAGE>

Agreement (including taxes imposed on the Servicer and all expenses incurred in
connection with reports to Noteholders). In addition, the Servicer shall pay to
the Trustee, and the Trustee shall be entitled to, certain annual fees and shall
reimburse the Trustee for all ordinary and reasonable out-of-pocket expenses
incurred or made by it in connection with the performance of its duties under
the Indenture (excluding those incurred or made in the performance of its duties
under Article V of the Indenture, as referred to in Section 6.07(b) of the
Indenture).

     SECTION 3.9. Servicer's Certificate. No later than 10:00 a.m. St. Paul,
Minnesota time on each Determination Date, the Servicer shall deliver to the
Issuer, the Trustee and each Rating Agency a Servicer's Certificate executed by
a Responsible Officer of the Servicer containing, among other things, (i) all
information necessary to enable the Trustee to make the withdrawals and
distributions required by Section 8.03 of the Indenture, (ii) all information
necessary to enable the Trustee to send the statements to Noteholders required
by Section 7.05 of the Indenture, and (iii) all information necessary to enable
the Trustee to reconcile all deposits to, and withdrawals from, the Servicing
Account, the Collection Account, the Residual Account, the Portfolio Expense
Account and the Reserve Account for the related Collection Period and Payment
Date, including the accounting required by Section 4.4. Leases repurchased (or
for which a Substitute Lease was substituted) by Vendor Services on the related
Deposit Date or by the Contributor on the related Accounting Date and each Lease
which became a Liquidated Lease or which was paid in full during the related
Collection Period, shall be identified by account number (as set forth in the
Schedule of Leases), and information regarding each Substitute Lease shall be
provided. A copy of such certificate may be obtained by any Noteholder (or by
any Note Owner, upon certification that such Person is a Note Owner and payment
of any expenses associated with the distribution thereof) by a request in
writing to the Trustee addressed to the Corporate Trust Office.

     SECTION 3.10. Annual Statement as to Compliance; Notice of Servicer
Termination Event.

          (a) The Servicer shall deliver to the Issuer, the Trustee and each
     Rating Agency, on or before March 31 (or 90 days after the end of the
     Servicer's fiscal year, if other than December 31) of each year, beginning
     on March 31, 2001, a certificate signed by any Responsible Officer of the
     Servicer, dated as of December 31 (or other applicable date) of the
     immediately preceding year, stating that (i) a review of the activities of
     the Servicer during the preceding 12-month period (or such other period as
     shall have elapsed from the Closing Date to the date of the first such
     certificate) and of its performance under this Agreement has been made
     under such officer's supervision, and (ii) to such officer's knowledge,
     based on such review, the Servicer has fulfilled all its obligations under
     this Agreement throughout such period, or, if there has been a default in
     the fulfillment of any such obligation, specifying each such default known
     to such officer and the nature and status thereof.

          (b) The Servicer shall deliver to the Issuer, the Trustee and each
     Rating Agency, promptly after having obtained knowledge thereof, but in no
     event later than two Business Days thereafter, written notice in a
     certificate signed by any Responsible Officer of the Servicer of any event
     which with the giving of notice or lapse of time, or both, would become a
     Servicer Termination Event

                                      -26-
<PAGE>

     under Section 8.1(a). The Contributor or the Servicer shall deliver to the
     Issuer, the Trustee, the Servicer or the Contributor (as applicable) and
     each Rating Agency promptly after having obtained knowledge thereof, but in
     no event later than three Business Days thereafter, written notice in a
     certificate signed by any Responsible Officer of the Servicer of any event
     which with the giving of notice or lapse of time, or both, would become a
     Servicer Termination Event under any other clause of Section 8.1.

     SECTION 3.11. Annual Independent Accountants' Report.

          (a) On or before May 1 of each year, commencing May 1, 2001, the
     Servicer at its expense shall cause a firm of independent public
     accountants which is a member of the American Institute of Certified Public
     Accountants to issue to the Servicer a report that such firm has examined
     selected documents, records and management's assertions relating to leases
     and loans serviced by the Servicer and stating that, on the basis of such
     examination, such servicing has been conducted in compliance with the
     minimum servicing standards identified in the Mortgage Bankers Association
     of America's Uniform Single Attestation Program for Mortgage Bankers, or
     any successor uniform program, except for such significant exceptions or
     errors in records that, in the opinion of such firm, generally accepted
     attestation standards requires it to report.

          (b) The Accountants' Report shall also indicate that the firm is
     independent of the Contributor and the Servicer within the meaning of the
     Code of Professional Ethics of the American Institute of Certified Public
     Accountants.

          (c) A copy of the Accountants' Report may be obtained by any
     Noteholder (or by any Note Owner, upon certification that such Person is a
     Note Owner and payment of any expenses associated with the distribution
     thereof) by a request in writing to the Trustee addressed to the Corporate
     Trust Office.

     SECTION 3.12. Access to Certain Documentation and Information Regarding
Leases. The Servicer shall provide to representatives of the Issuer and the
Trustee reasonable access to the documentation regarding the Leases. In each
case, such access shall be afforded without charge but only upon reasonable
request and during normal business hours. Nothing in this Section shall derogate
from the obligation of the Servicer to observe any applicable law, rule or
contractual provision with an Obligor prohibiting disclosure of information
regarding the Obligors, and the failure of the Servicer to provide access as
provided in this Section as a result of such obligation shall not constitute a
breach of this Section.

     SECTION 3.13. Certain Duties of the Servicer. The Servicer shall, and
hereby agrees that it will, monitor the Issuer's compliance with all applicable
provisions of federal securities laws, notify the Issuer of any actions to be
taken by the Issuer necessary for compliance with such laws and prepare on
behalf of the Issuer all notices, filings or other documents or instruments
required to be filed under such laws.

                                      -27-
<PAGE>

     SECTION 3.14. Duties of the Servicer under the Indenture. The Servicer
shall, and hereby agrees that it will, perform on behalf of the Issuer the
following duties of the Issuer under the Indenture (references are to the
applicable Sections in the Indenture):

          (a) the direction to the Paying Agents, if any, to deposit moneys with
     the Trustee (Section 3.03);

          (b) the obtaining and preservation of the Issuer's qualification to do
     business in each jurisdiction in which such qualification is or shall be
     necessary to protect the validity and enforceability of the Indenture, the
     Notes and each other instrument and agreement included in the Trust Estate
     (Section 3.04);

          (c) the preparation of all supplements, amendments, financing
     statements, continuation statements, instruments of further assurance and
     other instruments, in accordance with Section 3.05 of the Indenture,
     necessary to protect the Trust Estate (Section 3.05);

          (d) the annual delivery of Opinions of Counsel, in accordance with
     Section 3.06 of the Indenture, as to the Trust Estate, and the annual
     delivery of the Officers' Certificate and certain other statements, in
     accordance with Section 3.09 of the Indenture, as to compliance with the
     Indenture (Sections 3.06 and 3.09);

          (e) the preparation and obtaining of documents and instruments
     required for the release of the Issuer from its obligations under the
     Indenture (Section 4.01);

          (f) the monitoring of the Issuer's obligations as to the satisfaction
     and discharge of the Indenture and the preparation of an Officers'
     Certificate and the obtaining of the Opinion of Counsel and the Independent
     Certificate relating thereto (Section 4.01);

          (g) the preparation of any written instruments required to confirm
     more fully the authority of any co-trustee or separate trustee and any
     written instruments necessary in connection with the resignation or removal
     of any co-trustee or separate trustee (Sections 6.08 and 6.11);

          (h) the opening of one or more accounts in the Issuer's name, the
     preparation of Issuer Orders, Officers' Certificates and Opinions of
     Counsel and all other actions necessary with respect to investment and
     reinvestment of funds in the Trust Accounts (Sections 8.02, 8.04, 8.05 and
     8.06);

          (i) the preparation of Issuer Orders and the obtaining of Opinions of
     Counsel with respect to the execution of supplemental indentures (Sections
     9.01, 9.02 and 9.03);

                                      -28-
<PAGE>

          (j) the preparation of all Officers' Certificates, Opinions of Counsel
     and Independent Certificates with respect to any requests by the Issuer to
     the Trustee to take any action under the Indenture (Section 11.01); and

          (k) the recording of the Indenture, if applicable (Section 11.15).

     SECTION 3.15. Fidelity Bond. Within 30 days after the Closing Date, the
Servicer shall obtain, and shall thereafter maintain, (i) a policy or policies
of insurance covering errors and omissions by the Servicer, and (ii) a fidelity
bond. Such policy or policies and such fidelity bond shall be in such form and
amount as is generally customary among persons that service a portfolio of
equipment lease contracts, installment sale contracts, promissory notes, loan
and security agreements and/or other similar types of receivables having an
unpaid balance of at least $100,000,000 and which are generally regarded as
servicers acceptable to institutional investors. Each such policy shall name the
Issuer, the Trustee and the Contributor as parties insured thereunder as their
respective interests may appear.

                                   ARTICLE IV

                            COLLECTIONS AND DEPOSITS

     SECTION 4.1. Initial Deposit. No later than the second Business Day
following the Closing Date, the Servicer shall deposit in the Servicing Account
(i) all Scheduled Payments and Prepayments of Leases received by the Servicer on
or after the Initial Cut-Off Date (including those Scheduled Payments due prior
to, but not received as of, the Initial Cut-Off Date, but excluding those
Scheduled Payments due on or after, but received prior to, the Cut-Off Date) and
on or prior to the second Business Day immediately preceding such date and (ii)
all Liquidation Proceeds (including proceeds of Insurance Policies to be treated
as such in accordance with Section 3.4) realized in respect of the Leases and
related Equipment and applied by the Servicer on and after the Initial Cut-Off
Date.

     SECTION 4.2. Collections.

          (a) Pursuant to the Indenture, the Trustee has established the
     Servicing Account. The Servicer shall make deposits to and transfers from
     the Servicing Account, and shall be entitled to make withdrawals therefrom,
     as provided in this Agreement. The Servicer shall remit to the Servicing
     Account all payments by or on behalf of the Obligors on the Leases (other
     than amounts constituting Administrative Fees), all Residual Realizations
     and all Liquidation Proceeds (including (1) proceeds of Insurance Policies
     to be treated as such in accordance with Section 3.4 and (2) deficiency
     amounts paid by the Servicer with respect to the disposition of Equipment
     to be treated as such in accordance with the last paragraph of Section 3.3)
     received by the Servicer, in each case, as soon as practicable, but in no
     event later than the second Business Day after receipt thereof. Within
     three Business Days after the deposit of such payments and proceeds
     therein, the Servicer shall transfer all amounts credited to the Servicing
     Account on account of such payments and proceeds (i) to the extent they
     constitute

                                      -29-
<PAGE>

     Pledged Revenues, to the Collection Account and (ii) to the extent they
     represent Residual Realizations, to the Residual Account. Notwithstanding
     the foregoing, the Servicer may utilize an alternative remittance schedule
     acceptable to the Servicer if the Servicer provides to the Trustee written
     confirmation from each Rating Agency that such alternative remittance
     schedule will not result in the downgrading or withdrawal by the Rating
     Agency of the rating then assigned to the Notes. Amounts from time to time
     in the Servicing Account shall be invested in accordance with Section 8.07
     of the Indenture, and the Servicer shall be entitled to any earnings on
     such investments as additional servicing compensation hereunder. In the
     event of any losses on such investments, the Servicer shall deposit in the
     Servicing Account the amount thereof, net of any earnings otherwise
     distributable to the Servicer.

          (b) The Servicer shall remit to the Collection Account (i) no later
     than the second Business Day prior to a Payment Date, that portion of any
     Purchase Amount relating to the Required Payoff Amount received by the
     Servicer upon the repurchase by Vendor Services of any Lease pursuant to
     Section 2.6, and (ii) that portion of the amount paid by the Contributor to
     repurchase the Leases pursuant to Section 5.1 as is required to be
     deposited in the Collection Account pursuant to such Section.

          (c) Notwithstanding the provisions of subsections (a) and (b) hereof,
     the Servicer will be entitled to be reimbursed from amounts on deposit in
     the Servicing Account or the Collection Account with respect to a
     Collection Period for amounts previously deposited in the Servicing Account
     or the Collection Account but later determined by the Servicer in good
     faith to (i) have resulted from mistaken deposits or postings or checks
     returned for insufficient funds, or (ii) be required to be repaid to an
     Obligor. The amount to be reimbursed hereunder may be retained pursuant to
     Section 4.4 at any time or may otherwise be paid to the Servicer on the
     related Payment Date pursuant to Section 8.03(i) of the Indenture upon
     certification by the Servicer of such amounts and the provision of such
     information to the Trustee as may be necessary to verify the accuracy of
     such certification.

     SECTION 4.3. Application of Collections. For the purposes of this
Agreement, all collections for a Collection Period shall be applied by the
Servicer as follows:

          (a) With respect to each Lease, payments by or on behalf of the
     Obligor thereof (other than Administrative Fees with respect to such Lease,
     to the extent collected) shall be applied to Scheduled Payments and
     Prepayments in accordance with the terms of such Lease and the Servicer's
     credit and collection policies and procedures. With respect to each
     Liquidated Lease, the Liquidation Proceeds shall be applied, for purposes
     of this Agreement and the Indenture only, to Scheduled Payments and
     Prepayments on the Lease as if the Liquidation Proceeds had been paid by
     the Obligor on the Accounting Date, and then to any other amounts due and
     payable with respect to such Lease. The Servicer shall not be entitled to
     any Administrative Fees with respect to a Liquidated Lease unless the
     Required Payoff Amount for such Lease has been deposited in the Collection
     Account.

          (b) With respect to each Lease that has become a Purchased Lease as of
     any Deposit Date, the Purchase Amount shall be applied, for purposes of
     this Agreement and

                                      -30-
<PAGE>

     the Indenture only, to Scheduled Payments and Prepayments on the Lease as
     if the Purchase Amount had been paid by the Obligor on the related
     Accounting Date. All payments by or on behalf of an Obligor received with
     respect to any Purchased Lease after the Accounting Date immediately
     preceding the Deposit Date on which the Purchase Amount was paid by Vendor
     Services, shall be paid to Vendor Services and shall not be included in
     Pledged Revenues.

          (c) With respect to each Lease that has been repurchased by the
     Contributor pursuant to Section 5.1, the purchase price shall be applied,
     for purposes of this Agreement and the Indenture only, to Scheduled
     Payments and Prepayments on the Lease as if such purchase price had been
     paid by the Obligor on the Accounting Date. All payments by or on behalf of
     an Obligor received with respect to any Lease so repurchased after the
     Accounting Date on which the purchase price was paid by the Contributor,
     shall be paid to the Contributor and shall not be included in the Amount
     Available.

     SECTION 4.4. Net Deposits. So long as no Servicer Termination Event shall
have occurred and be continuing with respect to the Servicer, the Servicer may
make the remittances or transfers to be made by it pursuant to Section 4.2 net
of amounts (which amounts may be netted prior to any such remittance or
transfer) that would otherwise be distributed to it pursuant to Section 8.03(i)
of the Indenture; provided, however, that the Servicer shall account for all of
such amounts in the related Servicer's Certificate as if such amounts were
deposited and distributed separately. If an error is made by the Servicer in
calculating the amount to be deposited or retained by it, with the result that
an amount less than required is deposited in the Collection Account, the
Servicer shall make a payment of the deficiency to the Collection Account
immediately upon becoming aware, or receiving notice from the Trustee, of such
error.

     SECTION 4.5. Servicer Advances. On each Determination Date, the Servicer
may, but will not be required to, advance and remit to the Trustee, in such
manner as will ensure that the Trustee will have immediately available funds on
account thereof by 11:00 a.m. St. Paul, Minnesota time on the second Business
Day prior to the next succeeding Payment Date, an amount (a "Servicer Advance")
equal to any Scheduled Payments due during the prior Collection Period but
unpaid prior to such Determination Date with respect to any Lease. In
consideration of each Servicer Advance the Servicer will be entitled to retain
any late payment fees recovered from the Obligor with respect to any Lease
Payment covered by a Servicer Advance, and, if the Servicer later determines
that such Servicer Advance will not be reimbursed from the recovery on the
delinquent Lease (a "Nonrecoverable Servicer Advance") from the Amount Available
on the next Payment Date. If the Servicer elects not to make a Servicer Advance,
all late fees paid by the Obligors on the Leases with respect to those late
payments must be deposited in the Collection Account and will be treated as part
of the Pledged Revenues when received. In addition, the Servicer will be
reimbursed for Servicer Advances from funds in the Collection Account in
accordance with the Indenture on the second following Payment Date.

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                                    ARTICLE V

                                   TERMINATION

     SECTION 5.1. Optional Purchase of All Leases; Liquidation of Trust Assets.

          (a) At such time as the sum of the Aggregate Principal Balance of the
     Notes is less than 20% of the Initial Pool Principal Balance, the
     Contributor shall have the option to purchase all of the Leases from the
     Issuer; provided, however, that the amount to be paid for such purchase (as
     set forth in the following sentence) shall, in any event, be sufficient to
     pay the full amount of unpaid principal of and interest payable on the
     Notes on the related Payment Date. To exercise such option, the Contributor
     shall, on any Accounting Date, pay to the Servicer the aggregate purchase
     price for the Leases (which shall be an amount equal to the sum of the
     Required Payoff Amounts for all of the Leases), plus the appraised value of
     any other property (including the right to receive any future recoveries)
     held as Trust Assets, such appraisal to be conducted by an appraiser
     mutually agreed upon by the Contributor and the Trustee (or, if the Notes
     are no longer Outstanding, the Issuer), and shall succeed to all interests
     in and to the Trust Assets. The fees and expenses related to such appraisal
     shall be paid by the Contributor. The Servicer shall immediately deposit
     the purchase price so paid into the Collection Account, to be treated as
     Available Pledged Revenues and distributed in accordance with Section 8.03
     of the Indenture.

          (b) Notice of any termination of the Issuer shall be given by the
     Servicer to the Issuer and the Trustee as soon as practicable (but in no
     event more than three Business Days) after the Servicer has received notice
     thereof.

     SECTION 5.2. Mandatory Purchase of Leases. On any Payment Date, if the
aggregate amounts on deposit in the Collection Account, the Reserve Account, the
Portfolio Expense Account and the Residual Account are greater than or equal to
the sum of (i) the Aggregate Principal Amount of the Notes, (ii) the accrued and
unpaid interest payments on the Notes, (iii) the accrued and unpaid Trustee Fee,
(iv) the accrued and unpaid Servicing Fee and (v) the unreimbursed Servicer
Advances, the Contributor will repurchase all of the Leases and prepay the
outstanding Notes.

                                   ARTICLE VI

                                 THE CONTRIBUTOR

     SECTION 6.1. Liability of Contributor. The Contributor shall be liable
hereunder only to the extent of the obligations in this Agreement specifically
undertaken by the Contributor and the representations made by the Contributor.

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     SECTION 6.2. Merger or Consolidation of, or Assumption of the Obligations
of, Contributor; Amendment of Certificate of Incorporation.

          (a) The Contributor shall not merge or consolidate with any other
     Person or permit any other Person to become the successor to the
     Contributor's business except in accordance with the requirements of this
     Section. The certificate of incorporation of any corporation (i) into which
     the Contributor may be merged or consolidated, (ii) resulting from any
     merger or consolidation to which the Contributor shall be a party, or (iii)
     succeeding to the business of Contributor, shall contain provisions
     relating to limitations on business and other matters substantively
     identical to those contained in the Contributor's certificate of
     incorporation. Any such successor corporation shall execute an agreement of
     assumption of every obligation of the Contributor under this Agreement and
     each Related Document and, whether or not such assumption agreement is
     executed, shall be the successor to the Contributor under this Agreement
     without the execution or filing of any document or any further act on the
     part of any of the parties to this Agreement. The Contributor shall provide
     prompt notice of any merger, consolidation or succession pursuant to this
     Section 6.2 to the Issuer, the Trustee and the Rating Agencies.
     Notwithstanding the foregoing, the Contributor shall not merge or
     consolidate with any other Person or permit any other Person to become a
     successor to the Contributor's business, unless (w) immediately after
     giving effect to such transaction, no representation or warranty made
     pursuant to Section 2.4 shall have been breached (for purposes hereof, such
     representations and warranties shall speak as of the date of the
     consummation of such transaction) and no event that, after notice or lapse
     of time, or both, would become an Event of Default or a Servicer
     Termination Event shall have occurred and be continuing, (x) the
     Contributor shall have delivered to the Issuer and the Trustee a
     certificate of a Responsible Officer of the Contributor and an Opinion of
     Counsel each stating that such consolidation, merger or succession and such
     agreement of assumption comply with this Section 6.2 and that all
     conditions precedent, if any, provided for in this Agreement relating to
     such transaction have been complied with, (y) the Contributor shall have
     delivered to the Issuer and the Trustee an Opinion of Counsel, stating
     that, in the opinion of such counsel, either (A) all financing statements
     and continuation statements and amendments thereto have been executed and
     filed that are necessary to preserve and protect the interest of the Issuer
     in the Trust Assets and reciting the details of the filings or (B) no such
     action shall be necessary to preserve and protect such interest, and (z)
     the Rating Agency Condition shall have been satisfied.

          (b) The Contributor hereby agrees that it shall not (i) take any
     action prohibited by Article VIII of its certificate of incorporation or
     (ii) without the prior written consent of the Issuer and the Trustee and
     without satisfaction of the Rating Agency Condition, amend Article III,
     Article V, Article VI or Article VIII of its certificate of incorporation.

     SECTION 6.3. Limitation on Liability of Contributor and Others. The
Contributor and any director or officer or employee or agent of the Contributor
may rely in good faith on the advice of counsel or on any document of any kind
prima facie properly executed and submitted by any Person respecting any matters
arising under this Agreement. The Contributor shall not be under any obligation
to appear in, prosecute or defend any legal action that is not incidental to its
obligations as transferor of the Leases under this Agreement and that in its
opinion may involve it in any expense or liability.

                                      -33-
<PAGE>

     SECTION 6.4. Contributor May Own Notes. Each of the Contributor and any
Affiliate of the Contributor may in its individual or any other capacity become
the owner or pledgee of Notes with the same rights as it would have if it were
not the Contributor or an Affiliate thereof except as otherwise specifically
provided herein or in the Related Documents. Notes so owned by or pledged to the
Contributor or such Affiliate shall have an equal and proportionate benefit
under the provisions of this Agreement or any Related Document, without
preference, priority, or distinction as among all of Notes; provided that any
Notes owned by the Contributor or any Affiliate thereof, during the time such
Notes are owned by them, shall be without voting rights for any purpose set
forth in this Agreement or any Related Document. The Contributor shall notify
the Issuer and the Trustee promptly after it or any of its Affiliates become the
owner or pledgee of a Note.

     SECTION 6.5. Covenants of the Contributor. The Contributor hereby covenants
that:

          (a) Separate Business. The Contributor will not permit its assets to
     be commingled with those of Vendor Services and the Contributor shall
     maintain separate corporate records, books of accounts and bank accounts
     from those of Vendor Services. The Contributor will not conduct its
     business in the name of Vendor Services and will cause Vendor Services to
     conduct its business solely in its own name so as not to mislead others as
     to the identity of the entity with which those others are concerned. The
     Contributor will provide for its own operating expenses and liabilities
     from its own funds, except that the organizational expenses of the
     Contributor may be paid by Vendor Services. The Contributor will not hold
     itself out, or permit itself to be held out, as having agreed to pay, or as
     generally being liable for, the debts of Vendor Services. The Contributor
     shall cause Vendor Services not to hold itself out, or permit itself to be
     held out, as having agreed to pay, or as generally being liable for, the
     debts of the Contributor except that the organizational expenses of the
     Contributor may be paid by Vendor Services. The Contributor will maintain
     an arm's length relationship with Vendor Services with respect to any
     transactions between the Contributor, on the one hand, and Vendor Services,
     on the other.

          (b) Adequate Capitalization. The Contributor shall at all times remain
     adequately capitalized for the normal obligations reasonably foreseeable in
     the conduct of its business, and shall not make any dividend or other
     distribution to its shareholders unless the net worth of the Contributor
     following such distribution is adequate for the normal obligations
     reasonably foreseeable in the conduct of its business.

                                                    ARTICLE VII

                                                   THE SERVICER

     SECTION 7.1. Liability of Servicer; Indemnities.

          (a) The Servicer (in its capacity as such and, in the case of Vendor
     Services, without limitation of its obligations under the Transfer
     Agreement) shall be liable hereunder only to the

                                      -34-
<PAGE>

     extent of the obligations in this Agreement specifically undertaken by the
     Servicer and the representations made by the Servicer.

          (b) The Servicer shall indemnify, defend and hold harmless the Issuer,
     the Trustee, the Contributor, their respective officers, directors, agents
     and employees and the Noteholders from and against any and all costs,
     expenses, losses, claims, damages and liabilities to the extent that such
     cost, expense, loss, claim, damage or liability arose out of, or was
     imposed upon the Issuer, the Trustee, the Contributor or the Noteholders
     through the Servicer's breach of this Agreement, the gross negligence,
     willful misfeasance or bad faith of the Servicer in the performance of its
     duties under this Agreement or by reason of reckless disregard of its
     obligations and duties under this Agreement.

          (c) The Servicer shall indemnify, defend and hold harmless the Issuer,
     in its individual capacity, its officers, directors, agents and employees,
     from and against all costs, taxes, expenses, losses, claims, damages and
     liabilities arising out of or incurred in connection with the acceptance or
     performance of the trusts and duties contained in the Related Documents,
     except to the extent that such cost, taxes (other than income taxes),
     expense, loss, claim, damage or liability is due to the willful misfeasance
     or gross negligence of the Issuer.

          (d) Indemnification under this Article shall include, without
     limitation, reasonable fees and expenses of counsel and expenses of
     litigation. If the Servicer has made any indemnity payments pursuant to
     this Article and the recipient thereafter collects any of such amounts from
     others, the recipient shall promptly repay such amounts collected to the
     Servicer, together with any interest earned thereon.

          (e) Vendor Services, in its individual capacity, hereby acknowledges
     that the indemnification provisions in the Transfer Agreement benefiting
     the Issuer and the Trustee are enforceable by each hereunder.

          (f) The provisions of this Section shall survive the termination of
     the Related Documents.

     SECTION 7.2. Merger or Consolidation of, or Assumption of the Obligations
of, the Servicer. The Servicer shall not merge or consolidate with any other
Person, convey, transfer or lease substantially all its assets as an entirety to
another Person, or permit any other Person to become the successor to the
Servicer's business unless, after the merger, consolidation, conveyance,
transfer, lease or succession, the successor or surviving entity shall be an
Eligible Servicer and shall be capable of fulfilling the duties of the Servicer
contained in this Agreement. Any corporation (i) into which the Servicer may be
merged or consolidated, (ii) resulting from any merger or consolidation to which
the Servicer shall be a party, (iii) which acquires by conveyance, transfer, or
lease substantially all of the assets of the Servicer, or (iv) succeeding to the
business of the Servicer, in any of the foregoing cases shall execute an
agreement of assumption to perform every obligation of the Servicer under this
Agreement and, whether or not such assumption agreement is executed, shall be
the successor to the Servicer under this Agreement without the execution or
filing of any paper or any further act on the part

                                      -35-
<PAGE>

of any of the parties to this Agreement, anything in this Agreement to the
contrary notwithstanding; provided, however, that nothing contained herein shall
be deemed to release the Servicer from any obligation. The Servicer shall
provide notice of any merger, consolidation or succession pursuant to this
Section to the Issuer, the Trustee and each Rating Agency. Notwithstanding the
foregoing, the Servicer shall not merge or consolidate with any other Person or
permit any other Person to become a successor to the Servicer's business, unless
(a) immediately after giving effect to such transaction, no representation or
warranty made pursuant to Section 3.6 shall have been breached (for purposes
hereof, such representations and warranties shall speak as of the date of the
consummation of such transaction) and no event that, after notice or lapse of
time, or both, would become a Servicer Termination Event shall have occurred and
be continuing, (b) the Servicer shall have delivered to the Issuer and the
Trustee a certificate of a Responsible Officer of the Servicer and an Opinion of
Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction
have been complied with, (c) the Servicer shall have delivered to the Issuer and
the Trustee an Opinion of Counsel, stating that, in the opinion of such counsel,
either (1) all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary to preserve and protect
the interest of the Issuer in the Trust Assets and reciting the details of the
filings or (2) no such action shall be necessary to preserve and protect such
interest, and (d) the Rating Agency Condition has been satisfied.

     SECTION 7.3. Limitation on Liability of Servicer and Others. Neither the
Servicer nor any of the directors or officers or employees or agents of the
Servicer shall be under any liability to the Issuer, the Contributor, the
Noteholders or the Trustee except as provided in this Agreement, for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement; provided, however, that this provision shall not protect the
Servicer or any such person against any liability that would otherwise be
imposed by reason of a breach of this Agreement or willful misfeasance, bad
faith or gross negligence (excluding errors in judgment) in the performance of
duties, by reason of reckless disregard of obligations and duties under this
Agreement or any violation of law by the Servicer or such person, as the case
may be; provided further, that this provision shall not affect any liability to
indemnify the Issuer and the Trustee for costs, taxes, expenses, claims,
liabilities, losses or damages paid by the Issuer or the Trustee, each in its
individual capacity. The Servicer and any director, officer, employee or agent
of the Servicer may rely in good faith on the advice of counsel or on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising under this Agreement.

     SECTION 7.4. Servicer Not to Resign. Subject to the provisions of Section
7.2, the Servicer shall not resign from the obligations and duties imposed on it
by this Agreement as Servicer except upon a determination that by reason of a
change in legal requirements the performance of its duties under this Agreement
would cause it to be in violation of such legal requirements in a manner which
would have a material adverse effect on the Servicer, and a Note Majority does
not elect to waive the obligations of the Servicer to perform the duties which
render it legally unable to act or to delegate those duties to another Person.
Any such determination permitting the resignation of the Servicer shall be
evidenced by an Opinion of Counsel to such effect delivered to the Issuer and
the

                                      -36-
<PAGE>

Trustee. No resignation of the Servicer shall become effective until a
successor Servicer that is an Eligible Servicer shall have assumed the
responsibilities and obligations of the Servicer; provided, however, that in the
event a successor Servicer is not appointed within 60 days after the Servicer
has given notice of its resignation and has provided the Opinion of Counsel
required by this Section, the Servicer may petition a court for its removal.

     SECTION 7.5. Corporate Existence. The Servicer shall maintain its
existence, rights and franchises as a corporation under the laws of the
jurisdiction of its incorporation, and will obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which the failure to so qualify would have an adverse effect on the validity or
enforceability of any Lease or this Agreement or on the ability of the Servicer
to perform its duties under this Agreement.

                                  ARTICLE VIII

                           SERVICER TERMINATION EVENTS

     SECTION 8.1. Servicer Termination Event. For purposes of this Agreement,
each of the following shall constitute a "Servicer Termination Event":

          (a) Any failure by the Servicer to deposit within the time periods
     specified in this Agreement in the Collection Account for distribution to
     Noteholders, or to distribute to the Contributor, any proceeds or payment
     required to be so deposited or distributed under the terms of this
     Agreement (or, if Vendor Services is the Servicer, the Transfer Agreement)
     that continues unremedied for a period of five Business Days (three
     Business Days with respect to payment of Purchase Amounts) after written
     notice is received by the Servicer from the Trustee or after discovery of
     such failure by a Responsible Officer of the Servicer; or

          (b) Failure by the Servicer to deliver to the Trustee and the Issuer
     the Servicer's Certificate by the third Business Day prior to the related
     Payment Date, or failure on the part of the Servicer to observe its
     covenants and agreements set forth in Section 7.2; or

          (c) Failure on the part of the Servicer duly to observe or perform in
     any material respect any other covenants or agreements of the Servicer set
     forth in this Agreement (or, if Vendor Services is the Servicer, the
     Transfer Agreement), which failure (i) materially and adversely affects the
     rights of the Issuer or Noteholders, and (ii) continues unremedied for a
     period of 30 days after the date on which written notice of such failure,
     requiring the same to be remedied, shall have been given to the Servicer by
     the Issuer, the Trustee or any Noteholder; or

          (d) (i) The commencement of an involuntary case under the federal
     bankruptcy laws, as now or hereinafter in effect, or another present or
     future federal or state bankruptcy, insolvency or similar law and such case
     is not dismissed within 60 days; or (ii) the

                                      -37-
<PAGE>

     entry of a decree or order for relief by a court or regulatory authority
     having jurisdiction in respect of the Servicer in an involuntary case under
     the federal bankruptcy laws, as now or hereafter in effect, or another
     present or future, federal or state, bankruptcy, insolvency or similar law,
     or appointing a receiver, liquidator, assignee, trustee, custodian,
     sequestrator or other similar official of the Servicer or of any
     substantial part of their respective properties or ordering the winding up
     or liquidation of the affairs of the Servicer; or

          (e) The commencement by the Servicer of a voluntary case under the
     federal bankruptcy laws, as now or hereafter in effect, or any other
     present or future, federal or state, bankruptcy, insolvency or similar law,
     or the consent by the Servicer to the appointment of or taking possession
     by a receiver, liquidator, assignee, trustee, custodian, sequestrator or
     other similar official of the Servicer or of any substantial part of its
     property or the making by the Servicer of an assignment for the benefit of
     creditors or the failure by the Servicer generally to pay its debts as such
     debts become due or the taking of corporate action by the Servicer in
     furtherance of any of the foregoing;

          (f) Any representation, warranty or statement of the Servicer made in
     this Agreement or any certificate, report or other writing delivered by the
     Servicer pursuant hereto shall prove to be incorrect in any material
     respect as of the time when the same shall have been made, the
     incorrectness of such representation, warranty or statement has a material
     adverse effect on the Issuer or Noteholders, and, within 30 days after
     written notice thereof shall have been given to the Servicer or the
     Contributor by the Issuer, the Trustee or any Noteholder, the circumstances
     or condition in respect of which such representation, warranty or statement
     was incorrect shall not have been eliminated or otherwise cured; or

          (g) The Monthly Loss Percentage on three consecutive Payment Dates
     exceeds 7.0% and the holders of a majority in Aggregate Principal Balance
     of each outstanding class of Notes (a "Note Majority") votes to declare a
     Servicer Termination Event.

     SECTION 8.2. Consequences of a Servicer Termination Event. The Servicer
shall provide written notice of a Servicer Termination Event to the Trustee, the
Issuer and each Rating Agency promptly after obtaining knowledge of such event.
If a Servicer Termination Event shall occur and be continuing, the Trustee may,
and at the direction of a Note Majority shall, by notice given in writing to the
Servicer and the Issuer, terminate all of the rights and obligations of the
Servicer under this Agreement. On or after the receipt by the Servicer of such
written notice, all authority, power, obligations and responsibilities of the
Servicer under this Agreement, whether with respect to the Notes, the Trust
Assets or otherwise, shall be terminated and automatically shall pass to, be
vested in and become obligations and responsibilities of the Trustee (unless and
until a successor Servicer is appointed in accordance with Section 8.3);
provided, however, that the Trustee shall have no liability with respect to any
obligation which was required to be performed by the terminated Servicer prior
to the date that the Trustee becomes the Servicer or any claim of a third party
based on any alleged action or inaction of the terminated Servicer. The Trustee
is authorized and empowered by this Agreement to execute and deliver, on behalf
of the terminated Servicer, as attorney-in-fact or otherwise, any and all

                                      -38-
<PAGE>

documents and other instruments and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination.
The terminated Servicer agrees to cooperate with the Trustee in effecting the
termination of the responsibilities and rights of the terminated Servicer under
this Agreement, including, without limitation, the transfer to the Trustee for
administration by it of all cash amounts that shall at the time be held by the
terminated Servicer for deposit, or have been deposited by the terminated
Servicer, in any of the Trust Accounts or thereafter received with respect to
the Leases and the delivery to the Trustee of all Lease Files, Monthly Records
and Collection Records and a computer tape in readable form as of the most
recent Business Day containing all information necessary to enable the Trustee
or a successor Servicer to service the Leases and the other Trust Assets. The
terminated Servicer shall grant the Issuer, the Trustee and the successor
Servicer reasonable access to the terminated Servicer's premises at the
terminated Servicer's expense.

     SECTION 8.3. Trustee to Act; Appointment of Successor.

          (a) On and after the time the Servicer receives a notice of
     termination pursuant to Section 8.2, the Trustee shall be the successor in
     all respects to the Servicer in its capacity as servicer under this
     Agreement and the transactions set forth or provided for in this Agreement,
     and shall be subject to all the responsibilities, restrictions, duties,
     liabilities and termination provisions relating thereto placed on the
     Servicer by the terms and provisions of this Agreement. As compensation
     therefor, the Trustee shall be entitled to receive the Total Servicing Fee
     (which amount shall include any Additional Servicer Compensation). The
     Issuer and the Trustee shall take such action, consistent with this
     Agreement, as shall be necessary to effectuate any such succession.

          (b) Notwithstanding the foregoing, the Trustee may, if it shall be
     unwilling to so act, or shall, if it is legally unable to so act, appoint,
     or petition a court of competent jurisdiction to appoint, any Eligible
     Servicer as the successor to the Servicer hereunder in the performance of
     all or any part of the responsibilities, duties or liabilities of the
     Servicer hereunder. Pending appointment of a successor pursuant to the
     preceding sentence, the Trustee shall act as successor Servicer unless it
     is legally unable to do so, in which event the outgoing Servicer shall
     continue to act as Servicer until a successor has been appointed and
     accepted such appointment.

          (c) In connection with such appointment and assumption, the Trustee
     may make such arrangements for the compensation of such successor out of
     payments on the Leases as it and such successor shall agree; provided,
     however, that no such monthly compensation shall, without the written
     consent of the Contributor and 100% of the Noteholders, exceed the Total
     Servicing Fee. The Trustee and such successor shall take such action,
     consistent with this Agreement, as shall be necessary to effectuate any
     such succession.

          (d) If a successor Servicer is acting as Servicer hereunder, it shall
     be subject to termination under Section 8.2 upon the occurrence of any
     Servicer Termination Event applicable to it as Servicer.

                                      -39-
<PAGE>

     SECTION 8.4. Notification to Noteholders. Upon any termination of, or
appointment of a successor to, the Servicer pursuant to this Article VIII, the
Issuer shall give prompt written notice thereof to each Rating Agency, and the
Trustee shall give prompt written notice thereof to Noteholders at their
respective addresses appearing in the Note Register.

     SECTION 8.5. Waiver of Past Defaults. A Note Majority may waive any default
by the Servicer in the performance of its obligations hereunder and its
consequences. Upon any such waiver of a past default, such default shall cease
to exist, and any Servicer Termination Event arising therefrom shall be deemed
to have been remedied for every purpose of this Agreement. No such waiver shall
extend to any subsequent or other default or impair any right consequent
thereon.

                                   ARTICLE IX

                             SUBSTITUTION OF LEASES

     SECTION 9.1. Substitution.

          (a) Subject to the satisfaction of the requirements set forth in
     Section 9.1(b) hereof, the Contributor will have the right (but not the
     obligation) at any time to substitute one or more Substitute Leases for a
     Lease (for purposes of this Section 9.1, such Lease referred to as a
     "Predecessor Lease") if:

               (i) the Predecessor Lease became (A) a Liquidated Lease, (B) a
          Prepaid Lease, (C) a Warranty Lease or (D) an Adjusted Lease during
          the immediately preceding Collection Period; and

               (ii) the aggregate Principal Balance of the Liquidated Leases,
          Adjusted Leases and Warranty Leases that are Predecessor Leases shall
          not in the aggregate exceed 10% of the Initial Pool Principal Balance.

          (b) Each transfer of Substitute Leases will be subject to the
     satisfaction of the following conditions precedent:

               (i) after giving effect to such substitutions and any adjustments
          pursuant to Section 3.2, the aggregate Book Value of such Leases must
          be not less than 90% of the Book Value of the Leases substituted or
          adjusted since the Closing Date.

               (ii) either the final payment on such Substitute Lease must be on
          or prior to June 30, 2007 or, to the extent the final payment on such
          Lease is due subsequent to June 30, 2007 only scheduled payments due
          on or prior to such date may be included in the Principal Balance of
          such Lease for the purpose of making any calculation under the
          Indenture.

                                      -40-
<PAGE>

               (iii) the Lease Pool Principal Balance, after giving effect to
          such adjustments and substitutions, must not be less than the Lease
          Pool Principal Balance prior to such adjustment or substitution
          (without giving effect to the proviso to the definition of "Principal
          Balance").

               (iv) the weighted average life of the Notes, after giving effect
          to such adjustments and substitutions, must not differ materially from
          the weighted average life of the Notes prior to such adjustments and
          substitutions.

               (v) after giving effect to such adjustments and substitutions,
          the aggregate Principal Balance of the Leases that were originated by
          Vendor Services must not be less than the aggregate Principal Balance
          of the Leases that were originated by Vendor Services prior to such
          adjustment or substitution.

     SECTION 9.2. Procedure.

          (a) By 11:00 a.m. on the Business Day prior to each Deposit Date, the
     Contributor shall give written notice to the Servicer of any substitution
     of Substitute Leases for Predecessor Leases during the preceding Collection
     Period. By 11:00 a.m. on the Deposit Date, the Contributor shall deliver to
     the Servicer and the Trustee and, to the extent not included in the
     Servicer's Certificate, the Trustee shall promptly deliver to each Rating
     Agency (i) a supplement to Exhibit A hereto setting forth the information
     shown thereon for each such Substitute Lease, (ii) an Officer's Certificate
     (A) certifying that each such Substitute Lease is an Eligible Lease, (B)
     specifying each Predecessor Lease for which a substitution has been made
     and the Principal Balance and the Book Value under each such Predecessor
     Lease and the Principal Balance and the Book Value under each Substitute
     Lease being transferred thereby and (C) that all conditions precedent to
     such addition or substitution have been satisfied and (iii) such additional
     information concerning such Substitute Leases or Predecessor Leases as may
     be needed for the Servicer to prepare its Servicer's Certificates pursuant
     to Section 3.9 and to otherwise carry out its duties as servicer hereunder.

          (b) Subject to the provisions of Section 9.3, the delivery of any
     Officer's Certificate and supplement to Exhibit A pursuant to Section
     9.2(a) shall be conclusive evidence, without further act or deed, that
     during the immediately preceding Collection Period and as of the related
     Cut-Off Date (i) Vendor Services assigned to the Contributor pursuant to
     Section 2.2 of the Transfer Agreement all of Vendor Services' right, title
     and interest in and to the Substitute Leases identified in such supplement
     and the related rights described in Section 2.1(a) of the Transfer
     Agreement, (ii) Vendor Services transferred to the Contributor, as a
     contribution to capital pursuant to Section 2.2 of the Transfer Agreement,
     all of Vendor Services' right, title and interest in and to the Equipment
     subject to such Substitute Leases and the related rights described in
     Section 2.1(a) of the Transfer Agreement, and (iii) the Contributor
     assigned and transferred to Vendor Services, without representation or
     warranty, all of the Contributor's right, title and interest in and to the
     Predecessor Leases identified in such Officer's Certificate and the
     Equipment subject thereto. The Contributor shall promptly deliver or cause
     to be delivered to the Servicer the original executed copy of each
     Substitute Lease assigned to

                                      -41-
<PAGE>

     the Contributor pursuant to Section 9.1 hereof and the related Lease File
     and the Contributor shall promptly request the Servicer to deliver to
     Vendor Services the original executed copy of each Predecessor Lease for
     which substitution has been made pursuant to Section 9.1 hereof and the
     related Lease File.

          (c) Subject to the provisions of Section 9.3, the delivery of any
     Officer's Certificate and supplement to Exhibit A pursuant to Section
     9.2(a) shall be conclusive evidence, without further act or deed, that
     during the immediately preceding Collection Period and as of the related
     Cut-Off Date (i) the Contributor assigned to the Issuer pursuant to Section
     9.1 hereof all of the Contributor's right, title and interest in and to the
     Substitute Leases identified in such supplement and the related rights
     described in Section 2.1 hereof, (ii) the Contributor transferred to the
     Issuer, as a contribution to capital, all of the Contributor's right, title
     and interest in and to the rights described in Section 2.1 hereof as they
     relate to the Equipment subject to such Substitute Leases, and (iii) the
     Issuer assigned and transferred to the Contributor, without representation
     or warranty, all of the Issuer's right, title and interest in and to the
     Predecessor Leases identified in such Officer's Certificate and the
     Equipment subject thereto. Upon such assignment of a Substitute Lease, the
     Issuer shall be deemed to have appointed and the Servicer shall be deemed
     to have accepted appointment as Custodian of the related Lease File
     pursuant to Section 2.2.

     SECTION 9.3. Objection and Repurchase. If any holder of the Notes objects
to any substitution of Leases within ten days of receipt of the Servicer's
Certificate providing notice thereof pursuant to Section 3.9, on the grounds
either that any Substitute Lease is not an Eligible Lease or that such
substitution or addition is otherwise not permitted under the provisions of
Section 9.1 hereof, the Contributor shall be entitled to present such additional
information as it deems appropriate in an effort to demonstrate that such Lease
is an Eligible Lease and that such substitution is permitted under the
provisions of Section 9.1 hereof. Following such presentation, the substitution
shall remain effective if each person originally objecting to the substitution
withdraws his objection. If the conditions specified in the preceding sentence
are not satisfied, or if at any time it is established that any lease was not,
at the time of substitution, an Eligible Lease, then Vendor Services shall be
required to repurchase such Lease in accordance with the provisions of Section
2.6 hereof.

     SECTION 9.4. Vendor Services' and Servicer's Subsequent Obligations. Upon
any substitution of Leases in accordance with the provisions of this Section 9,
Vendor Services', the Contributor's and the Servicer's obligations hereunder
with respect to the Predecessor Lease shall cease, but Vendor Services, the
Contributor and the Servicer shall each thereafter have the same obligations
with respect to the Substitute Lease substituted as it has with respect to all
other Leases subject to the terms hereof.

                                      -42-
<PAGE>

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

     SECTION 10.1. Amendment.

          (a) This Agreement may be amended by the Contributor, the Servicer,
     the Issuer and the Trustee without the consent of any of the Noteholders,
     (i) to cure any ambiguity, (ii) to correct or supplement any provisions in
     this Agreement that may be inconsistent with any other provision herein, or
     (iii) to make any other provisions with respect to matters or questions
     arising under this Agreement that are not inconsistent with the provisions
     hereof; provided, however, that such action shall not, as evidenced by an
     Opinion of Counsel, adversely affect in any material respect the interests
     of the Noteholders.

          (b) This Agreement may also be amended from time to time by the
     Contributor, the Servicer, the Issuer and the Trustee with the consent of a
     Note Majority (which consent of any Holder of a Note given pursuant to this
     Section or pursuant to any other provision of this Agreement shall be
     conclusive and binding on such Holder and on all future Holders of such
     Note and of any Note issued upon the transfer thereof or in exchange
     thereof or in lieu thereof whether or not notation of such consent is made
     upon the Note) for the purpose of adding any provisions to or changing in
     any manner or eliminating any of the provisions of this Agreement, or of
     modifying in any manner the rights of the Holders of Notes; provided,
     however, that no such amendment shall (a) increase or reduce in any manner
     the amount of, or accelerate or delay the timing of, collections of
     payments on Leases or distributions required to be made on any Note or the
     rate of interest payable thereon, (b) amend any provisions of Section 5.06
     or 8.03 of the Indenture in such a manner as to affect the priority of
     payment of interest or principal to Noteholders, or (c) reduce the
     aforesaid percentage required to consent to any such amendment or any
     waiver hereunder, without the consent of the Holders of all Notes then
     Outstanding and affected thereby; and provided, further, that no such
     amendment shall be effective unless and until the Rating Agency Condition
     has been satisfied.

          (c) Promptly after the execution of any such amendment or consent, the
     Issuer or the Trustee, as appropriate, shall furnish written notification
     of the substance of such amendment or consent to each Noteholder.

          (d) It shall not be necessary for the consent of Noteholders pursuant
     to Section 10.1(b) to approve the particular form of any proposed amendment
     or consent, but it shall be sufficient if such consent shall approve the
     substance thereof. The manner of obtaining such consents (and any other
     consents of Noteholders provided for in this Agreement) and of evidencing
     the authorization of the execution thereof by Noteholders shall be subject
     to such reasonable requirements as the Issuer or Trustee, as applicable,
     may prescribe, including the establishment of record dates.

          (e) Prior to the execution of any amendment to this Agreement, the
     Issuer shall be entitled to receive and rely upon an Opinion of Counsel
     stating that the execution of such amendment is

                                      -43-
<PAGE>

     authorized or permitted by this Agreement, in addition to the Opinion of
     Counsel referred to in Section 10.2(h). The Issuer may, but shall not be
     obligated to, enter into any such amendment which affects the Issuer's own
     rights, duties or immunities under this Agreement or otherwise.

     SECTION 10.2. Protection of Title to Trust Assets.

          (a) The Contributor shall execute and file such financing statements
     and cause to be executed and filed such continuation and other statements
     (including those prepared by the Servicer pursuant to Section 3.14(c)), all
     in such manner and in such places as may be required by law fully to
     preserve, maintain and protect the interest of the Issuer, the Issuer and
     the Trustee in the Trust Assets and in the proceeds thereof; except that
     (i) UCC-1 financing statements and continuation statements, listing the
     Obligor as debtor and the related Equipment as collateral, need be filed
     only as required by Section 3.5; and (ii) no assignments of any such
     financing statements relating to the Equipment shall be filed to reflect
     the assignment of the Leases by Vendor Services to the Contributor and by
     the Contributor to the Issuer. The Contributor shall deliver (or cause to
     be delivered) to the Issuer and the Trustee file-stamped copies of, or
     filing receipts for, any document filed as provided above, as soon as
     available following such filing.

          (b) Neither the Contributor nor the Issuer shall change its name,
     identity or corporate structure in any manner that would, could or might
     make any financing statement or continuation statement filed by the
     Contributor in accordance with paragraph (a) above seriously misleading
     within the meaning of Section 9-402(7) of the UCC, unless it shall have
     given the Issuer and the Trustee at least 60 days' prior written notice
     thereof, and shall promptly file appropriate amendments to all previously
     filed financing statements and continuation statements.

          (c) Each of the Contributor, the Servicer and the Issuer shall give
     the Issuer and the Trustee at least 60 days' prior written notice of any
     relocation of its principal executive office if, as a result of such
     relocation, the applicable provisions of the UCC would require the filing
     of any amendment of any previously filed financing or continuation
     statement or of any new financing statement. The Servicer shall at all
     times maintain each office from which it services Leases and its principal
     executive office within the United States of America.

          (d) The Servicer shall maintain accounts and records as to each Lease
     accurately and in sufficient detail to permit (i) the reader thereof to
     know at any time the status of such Lease, including payments and
     recoveries made and payments owing (and the nature of each) and (ii)
     reconciliation between payments or recoveries on (or with respect to) each
     Lease and the amounts from time to time deposited in the Collection Account
     in respect of such Lease.

          (e) The Servicer shall maintain its computer systems so that, from and
     after the time of transfer and assignment under this Agreement of the
     Leases to the Issuer, the Servicer's master computer records (including any
     backup archives) that refer to any Lease indicate clearly that the Lease is
     owned by the Issuer. Indication of the Issuer's ownership of a Lease shall
     be deleted from or modified on the Servicer's computer systems when, and
     only when, the Lease has been paid in full,

                                      -44-
<PAGE>

     liquidated (including receipt of all recoveries reasonably expected to be
     collected), a Substitute Lease substituted therefor, or purchased by the
     Contributor or Vendor Services.

          (f) Upon receipt by the Servicer of reasonable prior notice, Servicer
     shall permit the Issuer, the Trustee and their respective agents, at any
     time during the Servicer's normal business hours to inspect, audit and make
     copies of and abstracts from the Servicer's records regarding any Leases or
     any other portion of the Trust Assets.

          (g) The Servicer shall furnish to the Issuer and the Trustee at any
     time upon request a list (which may, at the option of the Servicer, be on a
     computer disk or other electronic storage medium) of all Leases then held
     as part of the Trust Assets, together with a reconciliation of such list to
     the Schedule of Leases and to each of the Servicer's Certificates furnished
     before such request indicating removal of Leases from the Issuer. Upon
     request, the Servicer shall furnish a copy of any list to the Contributor.
     Subject to the following sentence, the Issuer shall hold any such list and
     Schedule of Leases for examination by interested parties during normal
     business hours at the Corporate Trust Office upon reasonable notice by such
     Persons of their desire to conduct an examination. The Issuer shall and
     shall cause its representatives to hold in confidence all information
     thereon relating to the identity of the Obligors except to the extent
     disclosure may be required by ss. 9-208 of the UCC or by other applicable
     law (and all reasonable applications for confidential treatment are
     unavailing) and except to the extent that the Issuer may reasonably
     determine that such disclosure is consistent with its obligations under the
     Indenture.

          (h) The Contributor and the Servicer shall deliver to the Issuer and
     the Trustee simultaneously with the execution and delivery of this
     Agreement and of each amendment thereto and upon the occurrence of the
     events giving rise to an obligation to give notice pursuant to Section
     10.2(b) or (c), an Opinion of Counsel either (a) stating that, in the
     opinion of such Counsel, all financing statements and continuation
     statements have been executed and filed that are necessary fully to
     preserve and protect the interest of the Issuer and the Trustee in the
     Leases and the other Trust Assets, and reciting the details of such filings
     or referring to prior Opinions of Counsel in which such details are given,
     or (b) stating that, in the opinion of such counsel, no such action is
     necessary to preserve and protect such interest.

          (i) The Servicer shall deliver to the Issuer and the Trustee, within
     90 days after the beginning of each calendar year beginning with the first
     calendar year beginning more than three months after the Closing Date, an
     Opinion of Counsel, either (a) stating that, in the opinion of such
     counsel, all financing statements and continuation statements have been
     executed and filed that are necessary fully to preserve and protect the
     interest of the Issuer and the Trustee in the Leases, and reciting the
     details of such filings or referring to prior Opinions of Counsel in which
     such details are given, or (b) stating that, in the opinion of such
     counsel, no action shall be necessary to preserve and protect such
     interest.

     SECTION 10.3. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICTS

                                      -45-
<PAGE>

OF LAWS THEREOF AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER
THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 10.4. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Notes or the
respective rights of the Holders thereof.

     SECTION 10.5. Assignment. Notwithstanding anything to the contrary
contained in this Agreement, except as provided in Section 7.2 or Section 8.2
(and as provided in the provisions of the Agreement concerning the resignation
of the Servicer), this Agreement may not be assigned by the Contributor or the
Servicer without (i) the prior written consent of the Issuer, the Trustee and a
Note Majority, and (ii) satisfaction of the Rating Agency Condition.

     SECTION 10.6. Third-Party Beneficiaries. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns. Nothing in this Agreement, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder, any benefit or any legal or equitable right, remedy or claim under
this Agreement.

     SECTION 10.7. Counterparts. For the purpose of facilitating its execution
and for other purposes, this Agreement may be executed simultaneously in any
number of counterparts, each of which counterparts shall be deemed to be an
original, and all of which counterparts shall constitute but one and the same
instrument.

     SECTION 10.8. Intention of Parties. The parties hereto intend that, in the
event that the conveyance of the Leases and other Trust Assets pursuant to this
Agreement is determined to be made as security for a loan made by the Issuer or
the Noteholders to the Contributor, the Contributor hereby grants to the Issuer
to secure such loan a first priority security interest in all of the
Contributor's right, title and interest in and to the rights and property
intended to be conveyed to the Issuer pursuant to Section 2.1(a). This Agreement
shall, in such event, constitute a security agreement under applicable law.

     SECTION 10.9. Notices. All demands, notices and communications under this
Agreement shall be in writing, personally delivered or mailed by certified
mail-return receipt requested, or by facsimile transmission, and shall be deemed
to have been duly given upon receipt (a) in the case of Vendor Services, the
Contributor, the Issuer or the Servicer, at the following address: 1100 Landmark
Towers, 345 St. Peter Street, St. Paul, Minnesota 55102, Attention: General
Counsel and (b) in the case of the Trustee, at its Corporate Trust Office, or at
such other address as shall be designated by any such party in a written notice
to the other parties.

                                      -46-
<PAGE>

     SECTION 10.10. Income Tax Characterization. The Contributor has structured
the Indenture and the Notes with the intention that the Notes will qualify under
applicable federal, state, local and foreign tax law as indebtedness of the
Contributor secured by the Leases. The Contributor and the Servicer agree to
treat and to take no action inconsistent with the treatment of the Notes as such
indebtedness for purposes of federal, state, local and foreign income or
franchise taxes and any other tax imposed on or measured by income.

                                      -47-
<PAGE>

                  IN WITNESS WHEREOF, the Issuer, the Contributor, Vendor
Services, the Servicer and the Trustee have caused this Contribution and
Servicing Agreement to be duly executed by their respective officers as of the
day and year first above written.

                                       ISSUER:
                                       CONSECO FINANCE LEASE 2000-1, LLC

                                       By GREEN TREE LEASE FINANCE II, INC.

                                       By  ________________________________
                                       Name:    _____________________________
                                       Title:   _____________________________

                                       CONTRIBUTOR:
                                       GREEN TREE LEASE FINANCE II, INC.

                                       By  ________________________________
                                       Name:    _____________________________
                                       Title:   _____________________________

                                       CONSECO FINANCE VENDOR SERVICES
                                       CORPORATION
                                       In its individual capacity and
                                       as Servicer

                                       By  ________________________________
                                       Name:    _____________________________
                                       Title:   _____________________________

                                       TRUSTEE:
                                       WELLS FARGO BANK MINNESOTA, N.A.
                                       not in its individual capacity but solely
                                       as Trustee

                                       By  ________________________________
                                       Name:    _____________________________
                                       Title:   _____________________________

                                      -48-
<PAGE>

                                                                       EXHIBIT A

                        SCHEDULE OF LEASES AND EQUIPMENT
                        --------------------------------

                                      A-1
<PAGE>

                                                                       EXHIBIT B

                         FORM OF SERVICER'S CERTIFICATE

     The undersigned, on behalf of Conseco Finance Vendor Services Corporation,
in its capacity as servicer (the "Servicer") under the Contribution and
Servicing Agreement, dated as of July 1, 2000 (the "Contribution and Servicing
Agreement"), among Conseco Finance Lease 2000-1, LLC, Green Tree Lease Finance
II, Inc., Wells Fargo Bank Minnesota, N.A., as trustee under the Indenture, and
Conseco Finance Vendor Services Corporation, in its individual capacity and as
Servicer, DOES HEREBY CERTIFY that he/she is a Responsible Officer of the
Servicer and, pursuant to Section 3.9 of the Contribution and Servicing
Agreement, DOES HEREBY FURTHER CERTIFY the following with respect to the Payment
Date occurring on _____________________________________:

                                      B-1
<PAGE>

     This Certificate shall constitute the Servicer's Certificate required by
Section 3.9 of the Contribution and Servicing Agreement with respect to the
above Payment Date. Any term capitalized but not defined herein shall have the
meaning ascribed thereto in the Contribution and Servicing Agreement.

                  IN WITNESS WHEREOF the undersigned has hereunto set his/her
hand this _____________ day of _________________, ____________.

                                        CONSECO FINANCE VENDOR SERVICES
                                        CORPORATION

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

                                       B-2<PAGE>

                                                                     EXHIBIT 4.3

                        CONSECO FINANCE LEASE 2000-1, LLC

                       ____% Lease-Backed Notes, Class A-1
                       ____% Lease-Backed Notes, Class A-2
                       ____% Lease-Backed Notes, Class A-3
                       ____% Lease-Backed Notes, Class A-4
                        ____% Lease-Backed Notes, Class B
                        ____% Lease-Backed Notes, Class C
                        ____% Lease-Backed Notes, Class D

                                    INDENTURE

                            Dated as of July 1, 2000

                        WELLS FARGO BANK MINNESOTA, N.A.
                                     Trustee
<PAGE>

                              CROSS REFERENCE TABLE
  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)...........................................................  6.08; 6.11
     (c)...........................................................  N.A.
311(a).............................................................  6.12
     (b)...........................................................  6.12
     (c)...........................................................  N.A.
312(a).............................................................  7.01
     (b)...........................................................  7.02
     (c)...........................................................  7.02
313(a).............................................................  7.04
     (b)(1)........................................................  7.04
     (b)(2)........................................................  7.04
     (c)...........................................................  11.05
     (d)...........................................................  7.04
314(a).............................................................  7.03
     (b)...........................................................  3.06; 11.15
     (c)(1)........................................................  11.01
     (c)(2)........................................................  11.01
     (c)(3)........................................................  11.01
     (d)...........................................................  11.01
     (e)...........................................................  11.01
     (f)...........................................................  11.01
315(a).............................................................  6.01
     (b)...........................................................  6.05; 11.05
     (c)...........................................................  6.01
     (d)...........................................................  6.01
     (e)...........................................................  5.14
316(a)(last sentence)..............................................  1.01
     (a)(1)(A).....................................................  5.12
     (a)(1)(B).....................................................  5.13
     (a)(2)........................................................  N.A.
     (b)...........................................................  5.08
     (c)...........................................................  N.A.
317(a)(1)..........................................................  5.03
     (a)(2)........................................................  5.03
     (b)...........................................................  3.03
318(a).............................................................  11.07

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

2    N.A. means Not Applicable.
<PAGE>

                                                 TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>                                                                                  <C>

ARTICLE I         Definitions and Incorporation by Reference............................4
     SECTION 1.01.  Definitions.........................................................4
     SECTION 1.02.  Incorporation by Reference of Trust Indenture Act..................25
     SECTION 1.03.  Rules of Construction..............................................26

ARTICLE II        The Notes............................................................26
     SECTION 2.01.  Form...............................................................26
     SECTION 2.02.  Execution, Authentication and Delivery.............................27
     SECTION 2.03.  Temporary Notes....................................................27
     SECTION 2.04.  Registration; Registration of Transfer and Exchange................28
     SECTION 2.05.  Mutilated, Destroyed, Lost or Stolen Notes.........................29
     SECTION 2.06.  Person Deemed Owner................................................30
     SECTION 2.07.  Payment of Principal and Interest; Defaulted Interest..............30
     SECTION 2.08.  Cancellation.......................................................31
     SECTION 2.09.  Book-Entry Notes...................................................31
     SECTION 2.10.  Notices to Depository..............................................32
     SECTION 2.11.  Definitive Notes...................................................32
     SECTION 2.12.  Calculations.......................................................32

ARTICLE III       Covenants............................................................33
     SECTION 3.01.  Payment of Principal and Interest..................................33
     SECTION 3.02.  Maintenance of Office or Agency....................................33
     SECTION 3.03.  Money for Payments To Be Held in Trust.............................33
     SECTION 3.04.  Existence..........................................................35
     SECTION 3.05.  Protection of Trust Estate.........................................35
     SECTION 3.06.  Opinions as to Trust Estate........................................36
     SECTION 3.07.  Performance of Obligations; Servicing of Leases....................36
     SECTION 3.08.  Negative Covenants.................................................37
     SECTION 3.09.  Annual Statement as to Compliance..................................38
     SECTION 3.10.  Issuer May Consolidate or Merge Only on Certain Terms..............38
     SECTION 3.11.  Successor or Transferee............................................40
     SECTION 3.12.  No Other Business..................................................40
     SECTION 3.13.  No Borrowing.......................................................41
     SECTION 3.14.  Servicer's Obligations.............................................41
     SECTION 3.15.  Guarantees, Loans, Advances and Other Liabilities..................41
     SECTION 3.16.  Income Tax Characterization........................................41
     SECTION 3.17.  Restricted Payments................................................41
     SECTION 3.18.  Notice of Events of Default. ......................................41
     SECTION 3.19.  Further Instruments and Acts.......................................42
     SECTION 3.20.  Compliance with Laws...............................................42
     SECTION 3.21.  Amendments of Contribution and Servicing Agreement.................42
</TABLE>

                                       -i-
<PAGE>

<TABLE>
<CAPTION>

<S>                                                                                  <C>

     SECTION 3.22.  Issuer Obligation..................................................42

ARTICLE IV        Satisfaction and Discharge...........................................42
     SECTION 4.01.  Satisfaction and Discharge of Indenture............................42
     SECTION 4.02.  Application of Trust Money.........................................43
     SECTION 4.03.  Repayment of Moneys Held by Paying Agent...........................44
     SECTION 4.04.  Release of Trust Estate............................................44

ARTICLE V         Remedies.............................................................44
     SECTION 5.01.  Events of Default..................................................44
     SECTION 5.02.  Rights upon Event of Default.......................................45
     SECTION 5.03.  Collection of Indebtedness and Suits for Enforcement by Trustee;
                    Authority of Trustee...............................................46
     SECTION 5.04.  Remedies...........................................................47
     SECTION 5.05.  Optional Preservation of the Leases................................48
     SECTION 5.06.  Priorities.........................................................49
     SECTION 5.07.  Limitation of Suits................................................50
     SECTION 5.08.  Unconditional Rights of Noteholders To Receive Principal
                    and Interest.......................................................50
     SECTION 5.09.  Restoration of Rights and Remedies.................................51
     SECTION 5.10.  Rights and Remedies Cumulative.....................................51
     SECTION 5.11.  Delay or Omission Not a Waiver.....................................51
     SECTION 5.12.  Control by Noteholders.............................................51
     SECTION 5.13.  Waiver of Past Defaults............................................52
     SECTION 5.14.  Undertaking for Costs..............................................52
     SECTION 5.15.  Waiver of Stay or Extension Laws...................................52
     SECTION 5.16.  Action on Notes....................................................52
     SECTION 5.17.  Performance and Enforcement of Certain Obligations.................53

ARTICLE VI        The Trustee..........................................................53
     SECTION 6.01.  Duties of Trustee..................................................53
     SECTION 6.02.  Rights of Trustee..................................................56
     SECTION 6.03.  Individual Rights of Trustee.......................................57
     SECTION 6.04.  Trustee's Disclaimer...............................................57
     SECTION 6.05.  Notice of Defaults.................................................57
     SECTION 6.06.  Reports by Trustee to Holders......................................57
     SECTION 6.07.  Compensation and Indemnity.........................................57
     SECTION 6.08.  Replacement of Trustee.............................................58
     SECTION 6.09.  Successor Trustee by Merger........................................60
     SECTION 6.10.  Appointment of Co-Trustee or Separate Trustee......................60
     SECTION 6.11.  Eligibility; Disqualification......................................61
     SECTION 6.12.  Preferential Collection of Claims Against Issuer...................61
     SECTION 6.13.  Representations and Warranties of the Trustee......................61
     SECTION 6.14.  Servicer's Obligations.............................................62
</TABLE>

                                      -ii-
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<TABLE>
<CAPTION>

<S>                                                                                  <C>

ARTICLE VII Noteholders Lists and Reports..............................................62
     SECTION 7.01.  Note Registrar To Furnish Trustee Names and Addresses
                    to Noteholders.....................................................62
     SECTION 7.02.  Preservation of Information; Communications to Noteholders.........62
     SECTION 7.03.  Reports by Issuer..................................................63
     SECTION 7.04.  Reports by Trustee.................................................63
     SECTION 7.05.  Statements to Noteholders..........................................63

ARTICLE VIII        Trust Accounts, Disbursements and Releases.........................64
     SECTION 8.01.  Collection of Money................................................64
     SECTION 8.02.  Collection Account.................................................64
     SECTION 8.03.  Distributions......................................................64
     SECTION 8.04.  [Reserved].........................................................67
     SECTION 8.05.  Servicing Account..................................................67
     SECTION 8.06.  Residual Account...................................................67
     SECTION 8.07.  Reserve Account....................................................68
     SECTION 8.08.  General Provisions Regarding Servicing Account,
                    Collection Account, Portfolio Expense Account,
                    Residual Account and Reserve Account...............................68
     SECTION 8.09. Portfolio Expense Account...........................................70

ARTICLE IX          Supplemental Indentures............................................71
     SECTION 9.01.  Supplemental Indentures Without Consent of Noteholders.............71
     SECTION 9.02.  Supplemental Indentures With Consent of Noteholders................72
     SECTION 9.03.  Execution of Supplemental Indentures...............................73
     SECTION 9.04.  Effect of Supplemental Indenture...................................74
     SECTION 9.05.  Conformity With Trust Indenture Act................................74
     SECTION 9.06.  Reference in Notes to Supplemental Indentures......................74

ARTICLE X           Redemption of Notes................................................74
     SECTION 10.01.  Redemption........................................................74
     SECTION 10.02.  Form of Redemption Notice.........................................75
     SECTION 10.03.  Notes Payable on Redemption Date..................................75

ARTICLE XI          Miscellaneous......................................................76
     SECTION 11.01.  Compliance Certificates and Opinions, etc.........................76
     SECTION 11.02.  Form of Documents Delivered to Trustee............................78
     SECTION 11.03.  Acts of Noteholders...............................................78
     SECTION 11.04.  Notices, etc., to Trustee, Issuer and Rating Agencies.............79
     SECTION 11.05.  Notices to Noteholders; Waiver....................................79
     SECTION 11.06.  Alternate Payment and Notice Provisions...........................80
     SECTION 11.07.  Conflict with Trust Indenture Act.................................80
     SECTION 11.08.  Effect of Headings and Table of Contents..........................80
     SECTION 11.09.  Successors and Assigns............................................80
     SECTION 11.10.  Severability......................................................81
</TABLE>

                                      -iii-
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<TABLE>
<CAPTION>

<S>                                                                                  <C>

     SECTION 11.11.  Benefits of Indenture.............................................81
     SECTION 11.12.  Legal Holidays....................................................81
     SECTION 11.13.  Governing Law.....................................................81
     SECTION 11.14.  Counterparts......................................................81
     SECTION 11.15.  Recording of Indenture............................................81
     SECTION 11.16.  No Petition.......................................................81
     SECTION 11.17.  Inspection........................................................81
Testimonium, Signatures and Seals......................................................85
</TABLE>

Exhibit A       Form of Depository Agreement
Exhibit B       Form of Monthly Statements to Noteholders
Exhibit C-1     Form of Class A Note
Exhibit C-2     Form of Class B Note
Exhibit C-3     Form of Class C Note
Exhibit C-4     Form of Class D Note

                                      -iv-
<PAGE>

                  INDENTURE, dated as of July 1, 2000, between CONSECO FINANCE
LEASE 2000-1, LLC, a limited liability company formed pursuant to the laws of
the State of Delaware (the "Issuer"), and Wells Fargo Bank Minnesota, N.A., a
national banking association organized and existing under the laws of the United
States of America, in its capacity as Trustee (the "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 ____%
Lease-Backed Notes, Class A-1 (the "Class A-1 Notes"), ____% Lease-Backed Notes,
Class A-2 (the "Class A-2 Notes"), ____% Lease-Backed Notes, Class A-3 (the
"Class A-3 Notes"), ____% Lease-Backed Notes, Class A-4 (the "Class A-4 Notes"
and, together with the Class A-1 Notes, the Class A-2 Notes and the Class A-3
Notes, the "Class A Notes"), ____% Lease-Backed Notes, Class B (the "Class B
Notes"), ____% Lease- Backed Notes, Class C (the "Class C Notes") and ____%
Lease-Backed Notes, Class D (the "Class D Notes" and, together with the Class A
Notes, the Class B Notes and the Class C Notes, the "Notes"):

                  As security for the payment and performance by the Issuer of
its obligations under this Indenture and the Notes, the Issuer hereby Grants to
the Trustee, on behalf of and for the benefit of the Noteholders to secure the
payment and performance of the Secured Obligations, the following (collectively,
the "Trust Estate"):

                              GRANTING CLAUSE FIRST

                  All rights, title, interest (including security interests) and
privileges of the Issuer, whether now owned or hereafter acquired, whether now
existing or hereafter arising and wherever located, in and to:

                  (a) the Leases, including, without limitation, (A) all monies
         at any time paid or payable thereon or in respect thereof from and
         after the Initial Cut-Off Date or, in the case of Substitute Leases,
         the applicable Cut-Off Date, in the form of (1) Scheduled Payments
         (including those Scheduled Payments due prior to, but not received as
         of, the Cut-Off Date, but excluding those Scheduled Payments due on or
         after, but received prior to, the Cut-Off Date), (2) Prepayments, and
         (3) Liquidation Proceeds (including all net proceeds from the
         disposition of the related Equipment);

                  (b) the Pledged Revenues;

                  (c) all rights of the lessor or the secured party, as the case
         may be, in all present or future leases and other contracts relating to
         the Equipment and all revenues, payments, rights to payment, profits,
         accounts, chattel paper, products and contract rights arising from or
         related to such Equipment or any use thereof or from any such lease or
         other contract;

                  (d) all rights of the lessor or secured party, as the case may
         be, in all Insurance Policies and any other security (other than any
         ownership interest of the lessor in the Equipment) for the payment of
         amounts due under the Leases (including all rights, if any, the

                                       -1-
<PAGE>

         lessor or the secured party may have against vendors and other third
         parties for payments of such amounts);

                  (e) all items contained in the related Lease Files and any and
         all other documents that are kept on file in accordance with Vendor
         Services's customary procedures relating to the Leases;

                  (f) the Residual Realizations;

                  (g) the Trust Accounts, including amounts on deposit in the
         Residual Account and Reserve Account;

                  (h) the Insurance, Maintenance and Tax Accounts;

                  (i) the Contribution and Servicing Agreement, including (i)
         any deemed loan made by the Issuer to the SPC and the security
         therefor, including the security interest granted by the SPC to the
         Issuer to secure such deemed loan, as described in Section 2.1(c) of
         the Contribution and Servicing Agreement, and (ii) the obligation of
         the SPC pursuant to Section 2.1(a)(i)(3) of the Contribution and
         Servicing Agreement to cause payment of the Residual Realizations to
         the Issuer and the security interest in the Equipment granted by the
         SPC to the Issuer pursuant to Section 2.1(b) of the Contribution and
         Servicing Agreement;

                  (j) the Transfer Agreement, including (i) any Purchase Amount
         paid and (ii) any deemed loan made by the SPC to Vendor Services and
         the security therefor, including the security interest in the Leases
         and Equipment granted by Vendor Services to the SPC to secure such
         deemed loan, as described in Section 2.2 of the Transfer Agreement; and

                  (k) all present and future claims, demands, causes 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, voluntary or involuntary, into cash or other liquid
         property, all cash proceeds, accounts, accounts receivables, 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.

                             GRANTING CLAUSE SECOND

                  All other property of every name and nature from time to time
hereafter by delivery or by writing of any kind conveyed, pledged, assigned or
transferred, as and for additional security hereunder by the Issuer or by anyone
in its behalf or with its written consent to the Trustee, which is hereby
authorized to receive any and all such property at any and all times and to hold
and apply the same subject to the terms hereof.

                                       -2-
<PAGE>

                  The Trustee, for the benefit of the Holders of the Notes,
acknowledges such Grant. The Trustee, on behalf of the Holders of the Notes,
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 Holders of the
Notes may be adequately and effectively protected.

                                       -3-
<PAGE>

                                    ARTICLE I

                   Definitions and Incorporation by Reference
                   ------------------------------------------

                  SECTION 1.01. Definitions.

                  All terms defined in the Contribution and Servicing Agreement
(as defined below) shall have the same meaning in this Indenture. Except as
otherwise specified herein or as the context may otherwise require, the
following terms have the respective meanings set forth below for all purposes of
this Indenture.

                  "Accounting Date" means, with respect to a Payment Date, the
last day of the preceding calendar month.

                  "Act" has the meaning specified in Section 11.03(a).

                  "Additional Principal" with respect to each Payment Date is an
amount equal to (a) the Monthly Principal Amount, less (b) the Class A Principal
Payment, the Class B Principal Payment, the Class C Principal Payment and the
Class D Principal Payment to be paid on such Payment Date.

                  "Additional Servicer Compensation" means the amounts paid to
the Servicer (if Vendor Services or an affiliate is no longer the Servicer)
pursuant to the Contribution and Servicing Agreement.

                  "Affiliate" means, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such
specified Person. For the purposes of this definition, "control" when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

                  "Aggregate Principal Amount" means, as of any date, the
aggregate of the Outstanding Principal Amounts of each Class of Notes.

                  "Amount Available" means, with respect to any Payment Date,
the sum of (i) the Available Pledged Revenues for such Payment Date, (ii)
Servicer Advances, (iii) funds on deposit in the Residual Account, (iv) funds on
deposit in the Reserve Account and (v) late charges.

                  "Authorized Officer" means, with respect to the Issuer, any
officer of the Issuer who is authorized to act for the Issuer and who is
identified on the list of Authorized Officers delivered by the Issuer to the
Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter).

                                       -4-
<PAGE>

                  "Available Funds Shortfall" has the meaning specified in
Section 8.06(c).

                  "Available Pledged Revenues" means, with respect to any
Payment Date, the sum of (i) those Scheduled Payments due during the related
Collection Period and on deposit in the Collection Account as of the immediately
preceding Deposit Date, (ii) prepayments and Liquidation Proceeds received by
the Servicer during the related Collection Period, (iii) all Purchase Amounts on
deposit in the Collection Account as of the immediately preceding Deposit Date,
(iv) the amount paid by the SPC to purchase the Leases pursuant to Section 5.1
of the Contribution and Servicing Agreement on deposit in the Collection Account
as of the immediately preceding Deposit Date and (v) all net income from
investments of funds in the Collection Account since the preceding Deposit Date.

                  "Available Reserve Amount" means the amount on deposit in the
Reserve Account.

                  "Book-Entry Note" means any Note registered in the name of the
Depository or its nominee, ownership of which is reflected on the books of the
Depository or on the books of a person maintaining an account with such
Depository (directly or as an indirect participant in accordance with the rules
of such Depository).

                  "Business Day" means any day (other than a Saturday, Sunday or
legal holiday) on which commercial banking institutions in St. Paul, Minnesota,
or any other location of any successor Servicer or successor Trustee, are open
for regular business.

                  "Class" means, when used with respect to the Notes, all Notes
of a given Class.

                  "Class A Notes" means, collectively, the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

                  "Class A Percentage" is 83.15%.

                  "Class A Principal Payment" means (a) while the Class A-1
Notes are outstanding, (i) on all Payment Dates prior to the August 2001 Payment
Date, the lesser of (1) the amount necessary to reduce the Outstanding Principal
Amount on the Class A-1 Notes to zero and (2) the Monthly Principal Amount, and
(ii) on the August 2001 Payment Date, the entire Outstanding Principal Amount on
the Class A-1 Notes and (b) after the Class A-1 Notes have been paid in full,
the amount necessary to reduce the aggregate Outstanding Principal Amount of the
Class A Notes to the Class A Target Investor Principal Amount.

                  "Class A Target Investor Principal Amount" means, with respect
to each Payment Date, an amount equal to the product of (a) the Class A
Percentage and (b) the Lease Pool Principal Balance with respect to such Payment
Date.

                                       -5-
<PAGE>

                  "Class A-1 Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of the Class A-1 Interest Distributable
Amount for the preceding Payment Date over the amount that was actually
distributed in respect of interest on the Class A-1 Notes on such preceding
Payment Date, plus, to the extent permitted by law, an amount equal to the
product of (i) the Class A-1 Interest Rate, (ii) such excess, and (iii) a
fraction, the numerator of which is the actual number of days elapsed since the
preceding Payment Date (or the Closing Date, in the case of the first Payment
Date) and the denominator of which is 360.

                  "Class A-1 Interest Distributable Amount" means, with respect
to any Payment Date, the sum of the Class A-1 Monthly Interest Distributable
Amount and the Class A-1 Interest Carryover Shortfall for such Payment Date.

                  "Class A-1 Interest Rate" means _____% per annum.

                  "Class A-1 Monthly Interest Distributable Amount" means, with
respect to any Payment Date, an amount equal to the product of (i) the Class A-1
Interest Rate, (ii) the Outstanding Principal Amount of the Class A-1 Notes for
such Payment Date (or, in the case of the first Payment Date, the Original
Principal Amount of the Class A-1 Notes), and (iii) a fraction, the numerator of
which is the actual number of days elapsed since the preceding Payment Date (or
the Closing Date, in the case of the first Payment Date) and the denominator of
which is 360.

                  "Class A-1 Notes" means the _____% Lease-Backed Notes, Class
A-1, substantially in the form of Exhibit C-1.

                  "Class A-1 Stated Maturity Date" means ______________, 2001
(or, if such day is not a Business Day, the next succeeding Business Day
thereafter).

                  "Class A-2 Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of the Class A-2 Interest Distributable
Amount for the preceding Payment Date over the amount that was actually
distributed in respect of interest on the Class A-2 Notes on such preceding
Payment Date, plus, to the extent permitted by law, an amount equal to
one-twelfth of the product of (i) the Class A-2 Interest Rate and (ii) such
excess.

                  "Class A-2 Interest Distributable Amount" means, with respect
to any Payment Date, the sum of the Class A-2 Monthly Interest Distributable
Amount and the Class A-2 Interest Carryover Shortfall for such Payment Date.

                  "Class A-2 Interest Rate" means _____% per annum.

                  "Class A-2 Monthly Interest Distributable Amount" means, with
respect to any Payment Date other than the first Payment Date, an amount equal
to one-twelfth of the product of (i)

                                       -6-
<PAGE>

the Class A-2 Interest Rate and (ii) the Outstanding Principal Amount of the
Class A-2 Notes for such Payment Date, and, in the case of the first Payment
Date, an amount equal to the product of (i) the Class A-2 Interest Rate, (ii)
the Original Principal Amount of the Class A-2 Notes, and (iii) a fraction, the
numerator of which is ___ and the denominator of which is 360.

                  "Class A-2 Notes" means the _____% Lease-Backed Notes, Class
A-2, substantially in the form of Exhibit C-1.

                  "Class A-2 Stated Maturity Date" means _____________, 2003
(or, if such day is not a Business Day, the next succeeding Business Day
thereafter).

                  "Class A-3 Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of the Class A-3 Interest Distributable
Amount for the preceding Payment Date over the amount that was actually
distributed in respect of interest on the Class A-3 Notes on such preceding
Payment Date, plus, to the extent permitted by law, an amount equal to
one-twelfth of the product of (i) the Class A-3 Interest Rate and (ii) such
excess.

                  "Class A-3 Interest Distributable Amount" means, with respect
to any Payment Date, the sum of the Class A-3 Monthly Interest Distributable
Amount and the Class A-3 Interest Carryover Shortfall for such Payment Date.

                  "Class A-3 Interest Rate" means _____% per annum.

                  "Class A-3 Monthly Interest Distributable Amount" means, with
respect to any Payment Date other than the first Payment Date, an amount equal
to one-twelfth of the product of (i) the Class A-3 Interest Rate and (ii) the
Outstanding Principal Amount of the Class A-3 Notes for such Payment Date, and,
in the case of the first Payment Date, an amount equal to the product of (i) the
Class A-3 Interest Rate, (ii) the Original Principal Amount of the Class A-3
Notes, and (iii) a fraction, the numerator of which is ___ and the denominator
of which is 360.

                  "Class A-3 Notes" means the _____% Lease-Backed Notes, Class
A-3, substantially in the form of Exhibit C-1.

                  "Class A-3 Stated Maturity Date" means ___________, 2004 (or,
if such day is not a Business Day, the next succeeding Business Day thereafter).

                  "Class A-4 Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of the Class A-4 Interest Distributable
Amount for the preceding Payment Date over the amount that was actually
distributed in respect of interest on the Class A-4 Notes on such preceding
Payment Date, plus, to the extent permitted by law, an amount equal to
one-twelfth of the product of (i) the Class A-4 Interest Rate and (ii) such
excess.

                                       -7-
<PAGE>

                  "Class A-4 Interest Distributable Amount" means, with respect
to any Payment Date, the sum of the Class A-4 Monthly Interest Distributable
Amount and the Class A-4 Interest Carryover Shortfall for such Payment Date.

                  "Class A-4 Interest Rate" means _____% per annum.

                  "Class A-4 Monthly Interest Distributable Amount" means, with
respect to any Payment Date other than the first Payment Date, an amount equal
to one-twelfth of the product of (i) the Class A-4 Interest Rate and (ii) the
Outstanding Principal Amount of the Class A-4 Notes for such Payment Date, and,
in the case of the first Payment Date, an amount equal to the product of (i) the
Class A-4 Interest Rate, (ii) the Original Principal Amount of the Class A-4
Notes, and (iii) a fraction, the numerator of which is ___ and the denominator
of which is 360.

                  "Class A-4 Notes" means the _____% Lease-Backed Notes, Class
A-4, substantially in the form of Exhibit C-1.

                  "Class A-4 Stated Maturity Date" means ____________, 2005 (or,
if such day is not a Business Day, the next succeeding Business Day thereafter).

                  "Class B Floor" with respect to each Payment Date means (a)
3.875% of the Initial Pool Principal Balance, plus (b) the Cumulative Loss
Amount with respect to such Payment Date, minus (c) the Outstanding Principal
Amount of the Class C Notes as of such Payment Date, the Outstanding Principal
Amount of the Class D Notes as of such Payment Date and the amount on deposit in
the Reserve Account after giving effect to withdrawals to be made on such
Payment Date.

                  "Class B Interest Carryover Shortfall" means, with respect to
any Payment Date, the excess, if any, of the Class B Interest Distributable
Amount for the preceding Payment Date over the amount that was actually
distributed in respect of interest on the Class B Notes on such preceding
Payment Date, plus, to the extent permitted by law, an amount equal to
one-twelfth of the product of (i) the Class B Interest Rate and (ii) such
excess.

                  "Class B Interest Distributable Amount" means, with respect to
any Payment Date, the sum of the Class B Monthly Interest Distributable Amount
and the Class B Interest Carryover Shortfall for such Payment Date.

                  "Class B Interest Rate" means _____% per annum.

                  "Class B Monthly Interest Distributable Amount" means, with
respect to any Payment Date other than the first Payment Date, an amount equal
to one-twelfth of the product of (i) the Class B Interest Rate and (ii) the
Outstanding Principal Amount of the Class B Notes for such Payment Date, and, in
the case of the first Payment Date, an amount equal to the product of (i) the
Class B Interest

                                       -8-
<PAGE>

Rate, (ii) the Original Principal Amount of the Class B Notes, and (iii) a
fraction, the numerator of which is ___ and the denominator of which is 360.

                  "Class B Notes" means the _____% Lease-Backed Notes, Class B,
substantially in the form of Exhibit C-2.

                  "Class B Percentage" is 5.158%.

                  "Class B Principal Payment" shall equal (a) while the Class
A-1 Notes are outstanding, zero and (b) after the Outstanding Principal Amount
on the Class A-1 Notes has been reduced to zero, the amount necessary to reduce
the Outstanding Principal Amount of the Class B Notes to the greater of the
Class B Target Investor Principal Amount and the Class B Floor.

                  "Class B Stated Maturity Date" means ____________, 2005 (or,
if such day is not a Business Day, the next succeeding Business Day thereafter).

                  "Class B Target Investor Principal Amount" with respect to
each Payment Date is an amount equal to the product of (a) the Class B
Percentage and (b) the Lease Pool Principal Balance with respect to such Payment
Date.

                  "Class C Floor" with respect to each Payment Date means (a)
2.35% of the Initial Pool Principal Balance, plus (b) the Cumulative Loss Amount
with respect to such Payment Date minus (c) the sum of the Outstanding Principal
Amount of the Class D Notes as of such Payment Date and the amount on deposit in
the Reserve Account after giving effect to withdrawals to be made on such
Payment Date; provided that if the Outstanding Principal Amount of the Class B
Notes is equal to the Class B Floor on such Payment Date, the Class C Floor will
equal the Outstanding Principal Amount of the Class C Notes on such Payment
Date.

                  "Class C Interest Carryover Shortfall" means, with respect to
any Payment Date, the excess, if any, of the Class C Interest Distributable
Amount for the preceding Payment Date over the amount that was actually
distributed in respect of interest on the Class C Notes on such preceding
Payment Date, plus, to the extent permitted by law, an amount equal to
one-twelfth of the product of (i) the Class C Interest Rate and (ii) such
excess.

                  "Class C Interest Distributable Amount" means, with respect to
any Payment Date, the sum of the Class C Monthly Interest Distributable Amount
and the Class C Interest Carryover Shortfall for such Payment Date.

                  "Class C Interest Rate" means _____% per annum.

                                       -9-
<PAGE>

                  "Class C Monthly Interest Distributable Amount" means, with
respect to any Payment Date other than the first Payment Date, an amount equal
to one-twelfth of the product of (i) the Class C Interest Rate and (ii) the
Outstanding Principal Amount of the Class C Notes for such Payment Date, and, in
the case of the first Payment Date, an amount equal to the product of (i) the
Class C Interest Rate, (ii) the Original Principal Amount of the Class C Notes,
and (iii) a fraction, the numerator of which is ___ and the denominator of which
is 360.

                  "Class C Notes" means the _____% Lease-Backed Notes, Class C,
substantially in the form of Exhibit C-3.

                  "Class C Percentage" is 5.158%.

                  "Class C Principal Payment" shall equal (a) while the Class
A-1 Notes are outstanding, zero and (b) after the Outstanding Principal Amount
on the Class A-1 Notes has been reduced to zero, the amount necessary to reduce
the Outstanding Principal Amount of the Class C Notes to the greater of the
Class C Target Investor Principal Amount and the Class C Floor.

                  "Class C Stated Maturity Date" means ___________, 2005 (or, if
such day is not a Business Day, the next succeeding Business Day thereafter).

                  "Class C Target Investor Principal Amount" with respect to
each Payment Date is an amount equal to the product of (a) the Class C
Percentage and (b) the Lease Pool Principal Balance with respect to such Payment
Date.

                  "Class D Floor" with respect to each Payment Date means (a)
1.6% of the Initial Pool Principal Balance, plus (b) the Cumulative Loss Amount
with respect to such Payment Date minus (c) the amount on deposit in the Reserve
Account after giving effect to withdrawals to be made on such Payment Date;
provided that if the Outstanding Principal Amount of the Class C Notes is equal
to the Class C Floor on such Payment Date, the Class D Floor will equal the
Outstanding Principal Amount of the Class D Notes of the Class D Notes on such
Payment Date.

                  "Class D Interest Carryover Shortfall" means, with respect to
any Payment Date, the excess, if any, of the Class D Interest Distributable
Amount for the preceding Payment Date over the amount that was actually
distributed in respect of interest on the Class D Notes on such preceding
Payment Date, plus, to the extent permitted by law, an amount equal to
one-twelfth of the product of (i) the Class D Interest Rate and (ii) such
excess.

                  "Class D Interest Distributable Amount" means, with respect to
any Payment Date, the sum of the Class D Monthly Interest Distributable Amount
and the Class D Interest Carryover Shortfall for such Payment Date.

                                      -10-
<PAGE>

                  "Class D Interest Rate" means _____% per annum.

                  "Class D Monthly Interest Distributable Amount" means, with
respect to any Payment Date other than the first Payment Date, an amount equal
to one-twelfth of the product of (i) the Class D Interest Rate and (ii) the
Outstanding Principal Amount of the Class D Notes for such Payment Date, and, in
the case of the first Payment Date, an amount equal to the product of (i) the
Class D Interest Rate, (ii) the Original Principal Amount of the Class D Notes,
and (iii) a fraction, the numerator of which is ___ and the denominator of which
is 360.

                  "Class D Notes" means the _____% Lease-Backed Notes, Class D,
substantially in the form of Exhibit C-4.

                  "Class D Percentage" is 6.534%.

                  "Class D Principal Payment" shall equal (a) while the Class
A-1 Notes are outstanding, zero and (b) after the Outstanding Principal Amount
on the Class A-1 Notes has been reduced to zero, the amount necessary to reduce
the Outstanding Principal Amount of the Class D Notes to the greater of the
Class D Target Investor Principal Amount and the Class D Floor.

                  "Class D Stated Maturity Date" means ___________, 2008 (or, if
such day is not a Business Day, the next succeeding Business Day thereafter).

                  "Class D Target Investor Principal Amount" with respect to
each Payment Date is an amount equal to the product of (a) the Class D
Percentage and (b) the Lease Pool Principal Balance with respect to such Payment
Date.

                  "Closing Date" means August ___, 2000.

                  "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and Treasury Regulations promulgated thereunder.

                  "Collection Account" means the Eligible Account or Accounts
established and maintained by the Trustee in accordance with Section 8.02.

                  "Collection Period" means, with respect to any Payment Date,
the calendar month preceding the month in which such Payment Date occurs (such
calendar month being referred to as the "related" Collection Period with respect
to such Payment Date). With respect to an Accounting Date, the Collection Period
in which such Accounting Date occurs is referred to herein as the "related"
Collection Period with respect to such Accounting Date.

                  "Conseco" means Conseco Finance Corporation, a Delaware
corporation.

                                      -11-
<PAGE>

                  "Contribution and Servicing Agreement" means the Contribution
and Servicing Agreement, dated as of July 1, 2000, among the SPC, the Servicer,
the Trustee and the Issuer.

                  "Corporate Trust Office" means the principal office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at date of the execution of this Agreement is located
at 180 East Fifth Street, St. Paul, Minnesota 55101, Attention: Corporate Trust
Administration, Structured Finance; or at such other address as the Trustee may
designate from time to time by notice to the Noteholders and the Issuer, or the
principal corporate trust office of any successor Trustee (the address of which
the successor Trustee will notify the Noteholders and the Issuer).

                  "Cumulative Loss Amount" means, with respect to each Payment
Date, an amount equal to the excess, if any, of (a) the total of (i) the
Aggregate Principal Amount for such Payment Date, minus (ii) the lesser of (A)
the Monthly Principal Amount and (B) the Amount Available remaining after the
payment of amounts owing to the Servicer (other than the Servicing Fee to the
extent that Vendor Services is the Servicer), the Trustee (to the extent senior
to payments on the Notes) and in respect of interest on the Notes on such
Payment Date, over (b) the Lease Pool Principal Balance with respect to such
Payment Date.

                  "Cumulative Loss Percentage" means, with respect to each
Payment Date, the percentage equivalent of a fraction (a) the numerator of which
is an amount equal to the Discounted Present Value of all Leases that have
become Liquidated Leases since the Initial Closing Date, less any recoveries
received by the Issuer in respect thereof and (b) the denominator of which is
the Initial Pool Principal Balance.

                  "Cut-Off Date" means the Initial Cut-Off Date or, in the case
of a Substitute Lease, the first day of the month of transfer to the Issuer.

                  "Default" means any occurrence that is, or with notice or the
lapse of time or both would become, an Event of Default.

                  "Definitive Notes" means any Note evidenced by a definitive,
fully registered Note and any Note issued in lieu of a Book-Entry Note pursuant
to Section 2.11.

                  "Delinquent Lease" means, as of any Determination Date, any
Lease (other than a Lease that became a Liquidated Lease prior to such
Determination Date) with respect to which the Obligor has failed to make a
required Scheduled Payment in an amount equal to at least 90% of the required
Scheduled Payment within 30 days of the due date.

                  "Deposit Date" means, with respect to any Collection Period,
the Business Day immediately preceding the related Determination Date.

                                      -12-
<PAGE>

                  "Depository" means the initial Depository, The Depository
Trust Company, the nominee of which is Cede & Co., as the registered Holder of
the Class A Notes, the Class B Notes and the Class C Notes as of the Closing
Date, and any permitted successor depository. The Depository shall at all times
be a "clearing corporation" as defined in Section 8-102(a)(5) of the Minnesota
UCC.

                  "Depository Agreement" means the agreement among the Issuer,
the Trustee and The Depository Trust Company, as the initial Depository, dated
as of the Closing Date, relating to the Notes, substantially in the form of
Exhibit A.

                  "Depository Participant" means a broker, dealer, bank or other
financial institution or other Person for whom from time to time a Depository
effects book-entry transfers and pledges of securities deposited with the
Depository.

                  "Determination Date" means, with respect to any Collection
Period, the first Business Day immediately preceding the related Payment Date.

                  "Eligible Account" means (i) an account maintained at an
Eligible Institution; (ii) an account or accounts the deposits in which are
fully insured by either the Bank Insurance Fund or the Savings Association
Insurance Fund of the FDIC; (iii) a trust account (which shall be a "segregated
trust account") maintained with the corporate trust department of a federal or
state chartered depository institution or trust company with trust powers and
acting in its fiduciary capacity for the benefit of the Trustee, which
depository institution or trust company (or, if such depository institution or
trust company is a subsidiary of a bank holding company, such bank holding
company) shall have capital and surplus of not less than $50,000,000 and the
securities of such depository institution or trust company (or, if such
depository institution or trust company is a subsidiary of a bank holding
company and has no securities which are rated, the securities of such bank
holding company) shall have a credit rating from each of the Rating Agencies (if
rated by such Rating Agency) in one of its generic credit rating categories
which signifies investment grade; or (iv) an account that will not cause any
Rating Agency to downgrade or withdraw its then-current rating assigned to the
Notes, as confirmed in writing by such Rating Agency.

                  "Eligible Institution" means any depository institution (which
may be the Trustee or an Affiliate of the Trustee) organized under the laws of
the United States or any state, the deposits of which are insured to the full
extent permitted by law by the Bank Insurance Fund of the FDIC, which is subject
to supervision and examination by federal or state authorities and whose
short-term deposits, commercial paper or other short-term debt obligations have
a credit rating that is acceptable to each of the Rating Agencies.

                  "Eligible Investments" means any one or more of the following
types of investments:

                                      -13-
<PAGE>

                  (i) direct obligations of, and obligations fully guaranteed as
         to timely receipt of principal and interest by, the United States of
         America, or any agency or instrumentality of the United States of
         America the obligations of which are backed by the full faith and
         credit of the United States of America;

                  (ii) demand and time deposits in, certificates of deposit of,
         bankers' acceptances issued by, or federal funds sold by any depository
         institution or trust company (including the Trustee or any Affiliate of
         the Trustee, acting in its commercial capacity) incorporated under the
         laws of the United States of America or any state thereof and subject
         to supervision and examination by federal or state authorities, so long
         as, at the time of such investment or contractual commitment providing
         for such investment, the short-term deposits, commercial paper or other
         short-term debt obligations of such depository institution or trust
         company are rated at least A-1+ by S&P and P-1 by Moody's;

                  (iii) shares of an investment company registered under the
         Investment Company Act of 1940, whose shares are registered under the
         Securities Act of 1933, as amended, and have the highest credit rating
         then available from Moody's and are rated AAAm or AAAm-G by S&P and
         whose only investments are in securities described in clauses (i) and
         (ii) above and (iv) below;

                  (iv) repurchase obligations with respect to (A) any security
         described in clause (i) above or (B) any other security issued or
         guaranteed by an agency or instrumentality of the United States of
         America, in either case entered into with a depository institution or
         trust company (acting as principal) described in clause (ii)(A) above;

                  (v) securities bearing interest or sold at a discount issued
         by any corporation incorporated under the laws of the United States of
         America or any state thereof which, at the time of such investment,
         have a credit rating of at least AAA from S&P and Aaa from Moody's;

                  (vi) commercial paper having a rating of at least A-1+ by S&P
         and P-1 by Moody's at the time of such investment;

                  (vii) investments in money market funds rated in the highest
         rating category by each of S&P and Moody's; and

                  (viii) any other investment which will not cause any Rating
         Agency to downgrade or withdraw its then-current rating assigned to the
         Notes, as confirmed in writing by such Rating Agency.

Eligible Investments may be purchased by or through the Trustee or any of its
Affiliates.

                                      -14-
<PAGE>

                  "Equipment" means the property which is leased pursuant to a
Lease, or which otherwise provides security for the payment of amounts payable
thereunder.

                  "Event of Default" has the meaning specified in Section 5.01.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Executive Officer" means, with respect to any corporation,
the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
President, Executive Vice President, any Vice President, any Responsible
Officer, the Secretary or the Treasurer of such corporation; and with respect to
any partnership, any general partner thereof.

                  "Grant" means mortgage, pledge, bargain, sell, warrant,
alienate, remise, release, convey, assign, transfer, create, and grant a lien
upon and a security interest in and right of set-off against, deposit, set over
and confirm pursuant to this Indenture. A Grant of the Trust Estate or of any
other agreement or instrument shall include all rights, powers and options (but
none of the obligations) of the Granting party thereunder, including the
immediate and continuing right to claim for, collect, receive and give receipt
for principal and interest payments in respect of the Trust Estate and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring Proceedings in the name of the Granting party or otherwise and generally
to do and receive anything that the Granting party is or may be entitled to do
or receive thereunder or with respect thereto.

                  "Holder" or "Noteholder" means the Person in whose name a Note
is registered on the Note Register.

                  "Indebtedness" means, with respect to any Person at any time,
(a) indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (b)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (c) current liabilities of such Person in respect of unfunded
vested benefits under plans covered by Title IV of ERISA; (d) obligations issued
for or liabilities incurred on the account of such Person; (e) obligations or
liabilities of such Person arising under acceptance facilities; (f) obligations
of such Person under any guarantees, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person
or otherwise to assure a creditor against loss; (g) obligations of such Person
secured by any lien on property or assets of such Person, whether or not the
obligations have been assumed by such Person; or (h) obligations of such Person
under any interest rate or currency exchange agreement.

                  "Indenture" means this Indenture as amended or supplemented
from time to time.

                                      -15-
<PAGE>

                  "Independent" means, when used with respect to any specified
Person, that the Person (a) is in fact independent of the Issuer, any other
obligor upon the Notes, the SPC, the Servicer and any Affiliate of any of the
foregoing Persons, (b) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
SPC, the Servicer or any Affiliate of any of the foregoing Persons and (c) is
not connected with the Issuer, any such other obligor, the SPC, the Servicer or
any Affiliate of any of the foregoing Persons as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions.

                  "Independent Certificate" means a certificate or opinion to be
delivered to the Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in this Indenture and that the signer is Independent within the meaning thereof.

                  "Initial Cut-Off Date" means July 1, 2000.

                  "Initial Pool Principal Balance" is $614,154,373.70.

                  "Interest Rate" means the Class A-1 Interest Rate, the Class
A-2 Interest Rate, the Class A-3 Interest Rate, the Class A-4 Interest Rate, the
Class B Interest Rate, the Class C Interest Rate and the Class D Interest Rate,
as applicable.

                  "Issuer" means the party named as such in this Indenture until
a successor replaces it and, thereafter, means the successor and, for purposes
of any provision contained herein and required by the TIA, each other obligor on
the Notes.

                  "Issuer Order" and "Issuer Request" means a written order or
request signed in the name of the Issuer by any one of its Authorized Officers
and delivered to the Trustee.

                  "Lease Pool Principal Balance" means, with respect to any
Payment Date, the sum of the Principal Balances (computed as of the related
Accounting Date) for all Leases.

                  "Leases" means the lease contracts listed on the Schedule of
Leases.

                  "Lien" means any security interest, lien, charge, pledge,
preference, equity or encumbrance of any kind, including tax liens, mechanics'
liens and any liens that attach by operation of law.

                  "Liquidated Lease" means, with respect to any Collection
Period, (i) a Lease which, during such Collection Period, was charged off as
uncollectible by the Servicer in accordance with its

                                      -16-
<PAGE>

credit and collection policies and procedures (which shall be no later than the
date as of which the Servicer has repossessed and disposed of the related
Equipment and otherwise collected all proceeds (including any proceeds of
insurance to be applied as described in Section 3.4(c)(ii) of the Contribution
and Servicing Agreement) which, in the Servicer's reasonable judgment, can be
collected under such Lease) following a default thereunder or upon damage to or
destruction of such Equipment (if such Equipment is not to be replaced in
accordance with Section 3.4(c)(i) of the Contribution and Servicing Agreement),
or (ii) a Lease as to which, during such Collection Period, 10% or more of a
Scheduled Payment shall have become 180 days delinquent.

                  "Liquidation Proceeds" means all amounts received by the
Servicer (i) in connection with the liquidation of any Lease and disposition of
the related Equipment or (ii) as insurance proceeds with respect to any damaged
or destroyed Equipment to be applied as described in Section 3.4(c)(ii) of the
Contribution and Servicing Agreement, in each case net of (a) reasonable
out-of-pocket expenses incurred by or on behalf of the Servicer in connection
with the collection of such Lease and the maintenance, repossession, repair,
storage and disposition of the related Equipment (including taxes and insurance
charges, to the extent in excess of amounts available therefor and relating to
such Lease in the Insurance, Maintenance and Tax Accounts, as well as attorneys'
fees) and (b) amounts that are required to be refunded to the Obligor on such
Lease; provided, however, that the Liquidation Proceeds with respect to any
Lease and disposition of the related Equipment shall in no event be less than
zero.

                  "Minnesota UCC" means the UCC as in effect in the State of
Minnesota from time to time.

                  "Monthly Delinquency Percentage" means, with respect to any
Payment Date, the percentage equivalent of a fraction (a) the numerator of which
is the Principal Balance of the Delinquent Leases determined as of the related
Accounting Date and (b) the denominator of which is the Lease Pool Principal
Balance as of such Payment Date.

                  "Monthly Loss Percentage" means, with respect to any Payment
Date, the percentage equivalent of a fraction (a) the numerator of which is the
Principal Balance of all Leases that have become Liquidated Leases during the
preceding Collection Period less Liquidation Proceeds and (b) the denominator of
which is the Lease Pool Principal Balance on the first day of such preceding
Collection Period.

                  "Monthly Principal Amount" means, with respect to any Payment
Date, the excess, if any, of (i) the sum of the Aggregate Principal Amount for
such Payment Date, over (ii) the Lease Pool Principal Balance with respect to
such Payment Date.

                  "Monthly Servicer Realization Percentage" means, with respect
to any Payment Date, the percentage equivalent of a fraction (a) the numerator
of which is the aggregate cumulative amount of

                                      -17-
<PAGE>

Residual Realizations collected on all Leases as to which the Servicer
determined during the related Collection Period that all Residual Realizations
to be received with respect to the related Equipment have been collected and (b)
the denominator of which is equal to the aggregate Book Value with respect to
such Leases.

                  "Moody's" means Moody's Investors Service, Inc., or any
successor thereto.

                  "Nonrecoverable Servicer Advance" means any Servicer Advance
previously made by the Servicer which the Servicer has determined based on its
sole discretion will not be reimbursed from recoveries on the Lease with respect
to which the Servicer Advance was made.

                  "Note" means a Class A-1 Note, Class A-2 Note, Class A-3 Note,
Class A-4 Note, Class B Note, Class C Note or Class D Note, as applicable.

                  "Note Majority" means Holders representing a majority of the
Outstanding Principal Amount of each Class of the Notes then Outstanding.

                  "Note Owner" means, with respect to a Book-Entry Note, the
Person who is the beneficial owner of such Book-Entry Note, as reflected on the
books of the Depository, or on the books of a Person maintaining an account with
such Depository (directly or as an indirect participant, in each case in
accordance with the rules of such Depository) and with respect to any Definitive
Notes, the Holder.

                  "Note Register" and "Note Registrar" have the respective
meanings specified in Section 2.04.

                  "Notes" means the Class A Notes, the Class B Notes, the Class
C Notes and the Class D Notes.

                  "Officer's Certificate" means a certificate signed by any
Authorized Officer of the Issuer, under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.01, and
delivered to the Trustee. Unless otherwise specified, any reference in this
Indenture to an Officer's Certificate shall be to an Officer's Certificate of
any Authorized Officer of the Issuer.

                  "Opinion of Counsel" means one or more written opinions of
counsel who may, except as otherwise expressly provided in this Indenture, be
employees of or counsel to the Issuer or the Servicer and which shall comply
with any applicable requirements of Section 11.01.

                  "Original Principal Amount" means (i) with respect to the
Class A-1 Notes, $____________, (ii) with respect to the Class A-2 Notes,
$____________, (iii) with respect to the

                                      -18-
<PAGE>

Class A-3 Notes, $____________, (iv) with respect to the Class A-4 Notes,
$____________, (v) with respect to the Class B Notes, $____________, (vi) with
respect to the Class C Notes, $____________, and (vii) with respect to the Class
D Notes, $____________.

                  "Outstanding" means, as of the date of determination, all
Notes theretofore authenticated and delivered under this Indenture except:

                  (i) Notes theretofore canceled by the Note Registrar or
         delivered to the Note Registrar for cancellation;

                  (ii) Notes or portions thereof the payment for which money in
         the necessary amount has been theretofore deposited with the Trustee or
         any Paying Agent in trust for the Holders of such Notes (provided,
         however, that if such Notes are to be redeemed, notice of such
         redemption has been duly given pursuant to this Indenture or provision
         therefor, satisfactory to the Trustee, has been made); and

                  (iii) Notes in exchange for or in lieu of other Notes which
         have been authenticated and delivered pursuant to this Indenture unless
         proof satisfactory to the Trustee is presented that any such Notes are
         held by a bona fide purchaser;

provided, however, that in determining whether the Holders of the requisite
Outstanding Amount of the Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or under any Related Document,
Notes owned by the Issuer, any other obligor upon the Notes, the SPC or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes that the Trustee knows to be so owned
shall be so disregarded. Notes so owned that have been pledged in good faith may
be regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not the Issuer, any other obligor upon the Notes, the SPC or any
Affiliate of any of the foregoing Persons.

                  "Outstanding Amount" means the Aggregate Principal Amount of
the Notes, or the Outstanding Principal Amount of a Class of Notes, as
applicable, Outstanding at the date of determination.

                  "Outstanding Principal Amount" means, as of any date, when
used with respect to a Class of Notes, the Original Principal Amount of such
Class, less all distributions previously made to such Class in respect of
principal (before giving effect to distributions of principal made on such
date).

                  "Paying Agent" means the Trustee or any other Person that
meets the eligibility standards for the Trustee specified in Section 6.11 and is
authorized by the Issuer to make the

                                      -19-
<PAGE>

distributions from the Collection Account, including payment of principal of or
interest on the Notes on behalf of the Issuer.

                  "Payment Date" means the twentieth day of each calendar month
(or, if such twentieth day is not a Business Day, the next succeeding Business
Day), commencing on August 21, 2000; provided, that if the Class A-1 Notes have
not been paid in full on or before the Payment Date in __________ 2001, the
Payment Date in __________ 2001 for the Class A-1 Notes will be _____________,
2001.

                  "Performing Lease" means, as of any Determination Date, any
Lease with respect to which the Obligor has paid all payments then due.

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

                  "Pledged Revenues" means (i) all Scheduled Payments on the
Leases received on or after the Cut-Off Date and due during the term of the
Leases without giving effect to end-of-term extensions or renewals thereof
(including all Scheduled Payments due prior to, but not received as of, the
Cut-Off Date, but excluding any Scheduled Payments due on or after, but received
prior to, the Cut-Off Date); (ii) any Prepayments of Scheduled Payments received
on or after the Cut-Off Date; (iii) the Purchase Amount of any Leases purchased
by Vendor Services in accordance with Section 2.6 of the Contribution and
Servicing Agreement (to the extent Vendor Services has not delivered Substitute
Leases); (iv) the amount paid by the SPC to repurchase the Leases pursuant to
Section 5.1 of the Contribution and Servicing Agreement; (v) all Liquidation
Proceeds received in respect of any Leases and the related Equipment on or after
the Cut-Off Date; and (vi) any earnings on the investment of amounts credited to
the Collection Account.

                  "Portfolio Expense Account" means the account designated as
such in, and established and maintained pursuant to Section 8.09.

                  "Portfolio Expense Account Deposit" means the amount deposited
in the Portfolio Expense Account pursuant to Section 8.09.

                  "Predecessor Note" means, with respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; and, for the purpose of this definition, any
Note authenticated and delivered under Section 2.05 in lieu of a mutilated,
lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

                                      -20-
<PAGE>

                  "Prepayment" means, with respect to any Collection Period for
any Lease, a voluntary prepayment during such Collection Period of amounts due
and owing under such Lease.

                  "Principal Balance" means, as of any Accounting Date,

                  (1) in the case of any Lease that does not by its terms permit
         prepayment or early termination, the present value of the unpaid
         Scheduled Payments due on such Lease after such last day of the
         Collection Period (excluding all Scheduled Payments due on or prior to,
         but not received as of, such last day, as well as any Scheduled
         Payments due after such last day and received on or prior thereto),
         after giving effect to any Prepayments received on or prior to such
         last day, discounted monthly (assuming, for purposes of such
         calculation, that each Scheduled Payment is due on the last day of the
         applicable Collection Period) at the rate of _____% per annum;

                  (2) in the case of any Lease that permits prepayment or early
         termination only upon payment of a premium that is at least equal to
         the present value (calculated in the manner described in clause (1)
         above) of the unpaid Scheduled Payments due on such Lease after the
         date of such prepayment, the amount specified in clause (1) above; and

                  (3) in the case of any Lease that permits prepayment or early
         termination without payment of a premium at least equal to the amount
         specified in clause (2) above, the lesser of (a) the outstanding
         principal balance of such Lease after giving effect to Scheduled
         Payments due on or prior to such last day of the Collection Period,
         whether or not received, as well as any Prepayments, and any Scheduled
         Payments due after such last day, received on or prior to such last
         day, and (b) the amount specified in clause (1) above;

provided that, for purposes of computing the Monthly Principal Amount for a
given Payment Date (as well as all Payment Dates thereafter), the Principal
Balance of any Lease which became a Liquidated Lease during the related
Collection Period or was required to be purchased by Vendor Services as of the
last day of the related Collection Period in accordance with Section 2.6, will
be deemed to be zero on and after the last day of such Collection Period.

                  "Proceeding" means any suit in equity, action at law or other
judicial or administrative proceeding.

                  "Purchase Amount" means, with respect to a Lease and related
Equipment required to be purchased by Vendor Services in accordance with Section
2.6 of the Contribution and Servicing Agreement, the sum of (i) the Required
Payoff Amount for such Lease as of the Accounting Date on which such obligation
to so purchase arises, plus (ii) the Book Value (if any) of the related
Equipment.

                                      -21-
<PAGE>

                  "Purchased Lease" means, as of any Deposit Date, any Lease
which Vendor Services has purchased (or substituted a Substitute Lease for) as
of the related Accounting Date, as required by Section 2.6 of the Contribution
and Servicing Agreement.

                  "Rating Agency" means each of S&P and Moody's, so long as such
Persons maintain a rating on the Notes; and, if neither S&P nor Moody's
maintains a rating on the Notes, such other nationally recognized statistical
rating organization, if any, selected by the SPC.

                  "Rating Agency Condition" means, with respect to any action,
that each Rating Agency shall have been given 10 days' prior notice thereof and
that each of the Rating Agencies shall have notified the Issuer, the Servicer,
the Trustee, and the SPC in writing that such action will not result in a
reduction, qualification or withdrawal of the then-current rating of the Notes.

                  "Record Date" means, with respect to a Payment Date or
Redemption Date, the close of business on the last Business Day immediately
preceding such Payment Date or Redemption Date (so long as the Notes are
Book-Entry Notes), or the last day of the prior calendar month (if Definitive
Notes have been issued).

                  "Redemption Date" means, in the case of a redemption of the
Notes pursuant to Section 10.01, the Payment Date specified by the Servicer or
the Issuer pursuant to Section 10.01.

                  "Redemption Price" means, in the case of a redemption of the
Notes pursuant to Section 10.01, an amount equal to the principal amount of the
Notes redeemed plus accrued and unpaid interest on the principal amount of each
Class of Notes at the respective Interest Rate for each such Class of Notes
being so redeemed to but excluding the Redemption Date.

                  "Registered Holder" means the Person in whose name a Note is
registered on the Note Register on the applicable Record Date.

                  "Related Documents" means the Notes, the Contribution and
Servicing Agreement, the Transfer Agreement, the Depository Agreement and the
underwriting agreements between the SPC, the Issuer and the underwriters of the
Notes. The Related Documents executed by any party are referred to herein as
"such party's Related Documents," "its Related Documents" or by a similar
expression.

                  "Remaining Available Funds Shortfall" has the meaning
specified in Section 8.07.

                  "Required Payments" has the meaning specified in Section
8.06(c).

                  "Required Payoff Amount" means, with respect to any Collection
Period for any Lease, the sum of (i) the Scheduled Payment due in such
Collection Period, together with any Scheduled Payments due in prior Collection
Periods but not yet received, plus (ii) the Principal Balance of such

                                      -22-
<PAGE>

Lease (after taking into account the Scheduled Payment due in such Collection
Period, whether or not received).

                  "Required Reserve Amount" means the lesser of (a) 3.25% of the
Initial Pool Principal Balance and (b) the Outstanding Principal Amount of the
Notes.

                  "Reserve Account" means the account designated as such in, and
established and maintained pursuant to, Section 8.07.

                  "Reserve Account Initial Deposit" means $____________.

                  "Residual Account" means the account designated as such in,
and established and maintained pursuant to, Section 8.06.

                  "Residual Event" means the occurrence of one or more of the
following:

                  (a) Vendor Services is no longer the Servicer;

                  (b) with respect to the September 2000 Collection Period and
         each Collection Period thereafter, the Three-Month Servicer Realization
         Percentage calculated on any Determination Date is less than 100%;

                  (c) with respect to the September 2000 Collection Period and
         each Collection Period thereafter, the Three-Month Delinquency
         Percentage is greater than 6.0%;

                  (d) with respect to the August 2000 Collection Period and each
         Collection Period thereafter, the Three-Month Loss Percentage is
         greater than 4.0%;

                  (e) on any Payment Date occurring since the Closing Date to
         and including the July 2001 Collection Period, the Cumulative Loss
         Percentage is greater than 4.0%;

                  (f) on any Payment Date occurring from the July 2001
         Collection Period to and including the July 2002 Collection Period, the
         Cumulative Loss Percentage is greater than 5.0%; or

                  (g) on any Payment Date occurring after the July 2002
         Collection Period, the Cumulative Loss Percentage is greater than 6.0%;

provided, however, that the Residual Event referred to in

                                      -23-
<PAGE>

                  (I) clause (b) may be cured if the Three-Month Servicer
         Realization Percentage is greater than or equal to 100% for three
         consecutive months thereafter;

                  (II) clause (c) may be cured if the Three Month Delinquency
         Percentage for any Collection Period thereafter is less than or equal
         to 5.5%;

                  (III) clause (d) may be cured if the Three Month Loss
         Percentage for any Collection Period thereafter is less than or equal
         to 3.5%; and

                  (IV) clauses (e), (f) or (g) may be cured if the Cumulative
         Loss Percentage for any Collection Period falling within the time frame
         specified in such subsection and which follows the occurrence of any
         Residual Event thereunder is less than or equal to the percentage
         specified in such subsection less 0.5%.

                  "Residual Realizations" means cash flows realized from the
sale or re-lease of the Equipment following the scheduled expiration dates or
voluntary early termination of the Leases, other than Equipment subject to (i)
Liquidated Leases or (ii) Prepaid Leases for which Vendor Services has delivered
a Substitute Lease in accordance with Section 9.2 of the Contribution and
Servicing Agreement.

                  "Responsible Officer" means, with respect to the Trustee, any
officer of the Trustee assigned by the Trustee to administer its corporate trust
affairs relating to the Trust Estate.

                  "S&P" means Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc., or any successor thereto.

                  "Schedule of Leases" means, collectively, the schedules of
Leases (which shall be made available to the parties to the Contribution and
Servicing Agreement on a computer disk or other data storage medium) attached to
the Contribution and Servicing Agreement as (or described in) Exhibit A, as the
same may be revised from time to time in accordance with the Contribution and
Servicing Agreement.

                  "Scheduled Payment" means, with respect to any Collection
Period for any Lease during the Original Term of such Lease, the scheduled
payment or payments due under such Lease in such Collection Period (other than
those portions of such payments which, under such Lease, are to be (i) applied
by the Servicer to the payment of insurance charges, maintenance, taxes and
other similar obligations, (ii) retained by the Servicer in payment of
Administrative Fees, or (iii) are late payments as to which Servicer Advances
were made on a Payment Date), received on or after the Cut-Off Date and due
during the term of the Leases, without giving effect to end-of-term extensions
or renewals thereof.

                                      -24-
<PAGE>

                  "Secured Obligations" means all amounts and obligations which
the Issuer may at any time owe to or on behalf of the Trustee for the benefit of
the Noteholders under this Indenture.

                  "Servicing Account" means the Eligible Account or Accounts
established and maintained pursuant to Section 8.05.

                  "SPC" means Green Tree Lease Finance II, Inc., a Minnesota
corporation.

                  "State" means any one of the 50 states of the United States of
America or the District of Columbia.

                  "Stated Maturity Date" means the Class A-1 Stated Maturity
Date, the Class A-2 Stated Maturity Date, the Class A-3 Stated Maturity Date,
the Class A-4 Stated Maturity Date, the Class B Stated Maturity Date, the Class
C Stated Maturity Date and the Class D Stated Maturity Date, as appropriate.

                  "Termination Date" means the date on which the Trustee shall
have received payment and performance of all Secured Obligations.

                  "Three-Month Delinquency Percentage" means, with respect to
any Payment Date, the percentage equivalent of fraction, (a) the numerator of
which is the sum of the Monthly Delinquency Percentage for such Payment Date and
the two immediately preceding Payment Dates and (b) the denominator of which is
three.

                  "Three-Month Loss Percentage" means, with respect to any
Payment Date, the percentage equivalent of a fraction, (a) the numerator of
which is the sum of the Monthly Loss Percentage for such Payment Date and the
two immediately preceding Payment Dates and (b) the denominator of which is
three.

                  "Three-Month Servicer Realization Percentage" means, with
respect to any Payment Date, the percentage equivalent of a fraction, (a) the
numerator of which is the sum of the Monthly Servicer Realization Percentage for
such Payment Date and the two immediately preceding Payment Dates and (b) the
denominator of which is three.

                  "Transfer Agreement" means the Transfer Agreement, dated as of
July 1, 2000, between Vendor Services and the SPC.

                  "Trust Accounts" means the Servicing Account, the Collection
Account, the Residual Account and the Reserve Account, and such other accounts
as may be established in the name of the Issuer or the Trustee pursuant to the
Contribution and Servicing Agreement.

                                      -25-
<PAGE>

                  "Trust Estate" means the Trust Estate as described in the
Granting Clauses hereof.

                  "Trust Indenture Act" or "TIA" means the Trust Indenture Act
of 1939, as amended, as in force on the date hereof, unless otherwise
specifically provided.

                  "Trustee" means Wells Fargo Bank Minnesota, N.A., a national
banking association organized and existing under the laws of the United States
of America, as Trustee under this Indenture, or any successor Trustee under this
Indenture.

                  "Trustee Fee" means the amount paid to the Trustee pursuant to
Section 8.03(i) and equals 0.015% per annum with a minimum of $2,500 per month.

                  "UCC" means, unless the context otherwise requires, the
Uniform Commercial Code, as in effect in the relevant jurisdiction, as amended
from time to time.

                  "Vendor Services" means Conseco Finance Vendor Services
Corporation, a Minnesota corporation.

                  SECTION 1.02. 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:

         "Commission" means the Securities and Exchange Commission.

         "indenture securities" means the Notes.

         "indenture security holder" means a Noteholder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Trustee.

         "obligor" on the indenture securities means the Issuer and any other
         obligor on the indenture securities.

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

                                      -26-
<PAGE>

                  SECTION 1.03. Rules of Construction. Unless otherwise
specified:

                  (i) a term has the meaning assigned to it;

                  (ii) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with generally accepted accounting
         principles as in effect from time to time;

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation;

                  (v) words in the singular include the plural and words in the
         plural include the singular; and

                  (vi) references to Sections, Subsections, Schedules and
         Exhibits shall refer to such portions of this Indenture.

                  Unless the context shall clearly indicate otherwise, or may
otherwise require, in this Indenture the terms "herein," "hereunder," "hereby,"
"hereto," "hereof" and any similar terms refer to this Indenture as a whole and
not to any particular article, section or subdivision hereof.

                                   ARTICLE II

                                    The Notes

                  SECTION 2.01. Form. Each Class of Class A Notes, Class B
Notes, Class C Notes and Class D Notes, in each case together with the Trustee's
certificate of authentication, shall be in substantially the forms set forth in
Exhibits C-1, C-2, C-3 and C-4, 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 of the Notes. 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.

                  The 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.

                  The terms of the Notes set forth in Exhibits C-1, C-2, C-3 and
C-4 are part of the terms of this Indenture.

                                      -27-
<PAGE>

                  SECTION 2.02. Execution, Authentication and Delivery. 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.

                  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.

                  The Trustee shall upon receipt of an Issuer Order authenticate
and deliver Class A-1 Notes for original issue in an aggregate principal amount
of $_____________, Class A-2 Notes for original issue in an aggregate principal
amount of $_____________, Class A-3 Notes for original issue in an aggregate
principal amount of $_____________, Class A-4 Notes for original issue in an
aggregate principal amount of $_____________, Class B Notes for original issue
in an aggregate principal amount of $_____________, Class C Notes in an
aggregate principal amount of $_____________ and Class D Notes in an aggregate
principal amount of $_____________. The aggregate principal amount of Class A-1
Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes, Class C
Notes and Class D Notes outstanding at any time may not exceed such respective
amounts except as provided in Section 2.05.

                  Each Note shall be dated the date of its authentication. The
Notes shall be issuable as registered Notes in the minimum denomination of
$10,000 and in integral multiples of $1 in excess thereof.

                  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 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 2.03. Temporary Notes. Pending the preparation of
definitive Notes, the Issuer may execute, and upon receipt of an Issuer Order
the Trustee shall authenticate and deliver, temporary Notes which are printed,
lithographed, typewritten, mimeographed or otherwise produced, 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 such
Notes may determine, as evidenced by their execution of such Notes.

                  If temporary Notes are issued, the Issuer will 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 3.02, without charge to
the Holder. Upon surrender for

                                      -28-
<PAGE>

cancellation of any one or more temporary Notes, the Issuer shall execute and
the 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 2.04. Registration; Registration of Transfer and
Exchange. 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 Trustee shall be the initial "Note Registrar" for the purpose of
registering Notes and transfers of Notes as herein provided. The Issuer may
revoke the appointment of, and remove, any Note Registrar if the Issuer
determines in its sole discretion that such Note Registrar failed to perform its
obligations under this Indenture in any material respect. Any Note Registrar
shall be permitted to resign as Note Registrar upon 30 days' notice to the
Issuer and, if the Note Registrar is not the Trustee, to the Trustee; provided,
however, that such resignation shall not be effective and such Note Registrar
shall continue to perform its duties as Note Registrar until the Issuer has
appointed a successor Note Registrar or elected to assume such duties. 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 Trustee is appointed by the Issuer
as Note Registrar, the Issuer will give the 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, and the Trustee shall have the right to inspect
the Note Register at all reasonable times and to obtain copies thereof, and the
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 Holders of the Notes and the principal amounts and number of such Notes.

                  Upon surrender for registration of transfer of any Note at the
office or agency of the Issuer to be maintained as provided in Section 3.02, the
Issuer shall execute, and the Trustee shall authenticate and the Noteholder
shall obtain from the Trustee, in the name of the designated transferee or
transferees, one or more new Notes of the same Class in any authorized
denominations, of a like aggregate principal amount.

                  At the option of the Holder, Notes may be exchanged for other
Notes 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, the Issuer shall execute, and the
Trustee shall authenticate and the Noteholder shall obtain from the Trustee, the
Notes which the Noteholder making the exchange is entitled to receive.

                                      -29-
<PAGE>

                  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.

                  Every Note presented or surrendered for registration of
transfer or exchange shall be duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Trustee duly executed by, the
Holder thereof or such Holder'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 a "signature guarantee program" determined by the Note
Registrar in accordance with the Exchange Act, and such other documents as the
Trustee may require.

                  No service charge shall be made to a Holder for any
registration of transfer or exchange of Notes, but the Issuer or the Trustee 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 2.03 or 9.06 not
involving any transfer.

                  The preceding provisions of this Section 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 15 days preceding the due date for any payment with respect to the
Note.

                  SECTION 2.05. Mutilated, Destroyed, Lost or Stolen Notes. If
(i) any mutilated Note is surrendered to the Trustee, or the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, and
(ii) there is delivered to the Trustee such security or indemnity as may be
required by the Trustee to hold the Issuer and the Trustee harmless, then, in
the absence of notice to the Issuer, the Note Registrar or the Trustee that such
Note has been acquired by a bona fide purchaser, the Issuer shall execute and
upon its request the Trustee shall authenticate and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement
Note; provided, however, that if any such destroyed, lost or stolen Note, but
not a mutilated Note, shall have become or within seven 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 bona fide purchaser of
the original Note in lieu of which such replacement Note was issued presents for
payment such original Note, the Issuer and the 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
bona fide 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 Trustee in connection therewith.

                                      -30-
<PAGE>

                  Upon the issuance of any replacement Note under this Section,
the Issuer or the Trustee may require the payment by the Holder 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 Trustee or the Note Registrar) connected therewith.

                  Every replacement Note issued pursuant to this Section 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.

                  The provisions of this Section 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 2.06. Person Deemed Owner. Prior to due presentment
for registration of transfer of any Note, the Issuer, the Trustee and any agent
of the Issuer or the 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 Trustee nor any agent of the Issuer or the Trustee shall
be affected by notice to the contrary.

                  SECTION 2.07. Payment of Principal and Interest; Defaulted
Interest.

                  (a) The Notes shall accrue interest as provided in the forms
of the Class A Notes, the Class B Note, the Class C Note and the Class D Note
set forth in Exhibits C-1, C-2, C-3 and C-4, respectively, and such interest
shall be payable on each Payment Date as specified therein, subject to Section
3.01. Any installment of interest or principal, if any, payable on any Note
which is punctually paid or duly provided for by the Issuer on the applicable
Payment Date shall be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date, by check mailed
first-class, postage prepaid to such Person's address as it appears on the Note
Register on such Record Date, except that, unless Definitive Notes have been
issued pursuant to Section 2.11, with respect to Notes registered on the Record
Date in the name of the nominee of the Depository, payment will 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 Payment Date, which shall be payable as provided below. The
funds represented by any such checks returned undelivered shall be held in
accordance with Section 3.03.

                  (b) The principal of each Note shall be payable in
installments on each Payment Date as provided in the forms of the Class A Notes,
the Class B Note, the Class C Note and the Class D Note set forth in Exhibits
C-1, C-2, C-3 and C-4, respectively. Notwithstanding the

                                      -31-
<PAGE>

foregoing, the entire unpaid principal amount of the 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 and the Notes have been declared immediately due
and payable in the manner provided in Section 5.02. All principal payments on a
Class of Notes shall be made pro rata to the Noteholders of such Class entitled
thereto. The Trustee shall notify the Person in whose name a Note is registered
at the close of business on the Record Date preceding the Payment Date on which
the Issuer expects that the final installment of principal of and interest on
such Note will be paid. Such notice shall be mailed no later than five days
prior to such final Payment Date and shall specify that such final installment
will 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 redemptions of Notes shall be
mailed to Noteholders as provided in Section 10.02.

                  SECTION 2.08. Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be promptly
canceled by the Trustee. The Issuer may at any time deliver to the 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 canceled by the Trustee. No Notes shall be
authenticated in lieu of or in exchange for any Notes canceled as provided in
this Section, except as expressly permitted by this Indenture. All canceled
Notes may be held or disposed of by the 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, provided
that such Issuer Order is timely and the Notes have not been previously disposed
of by the Trustee.

                  SECTION 2.09. Book-Entry Notes. The Notes, upon original
issuance, will be issued in the form of a typewritten Note or Notes representing
the Book-Entry Notes, to be delivered to The Depository Trust Company, the
initial Depository, by, or on behalf of, the Issuer. Each such Note shall
initially be registered on the Note Register in the name of Cede & Co., the
nominee of the initial Depository, and no Note Owner will receive a Definitive
Note representing such Note Owner's interest in such Note, except as provided in
Section 2.11. Unless and until Definitive Notes have been issued to Note Owners
pursuant to Section 2.11:

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

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

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

                                      -32-
<PAGE>

                  (iv) the rights of Note Owners shall be exercised only through
         the Depository and shall be limited to those established by law and
         agreements between such Note Owners and the Depository and/or the
         Depository Participants. Pursuant to the Depository Agreement, unless
         and until Definitive Notes are issued pursuant to Section 2.11, the
         initial Depository will make book-entry transfers among the Depository
         Participants and receive and transmit payments of principal of and
         interest on the Notes to such Depository Participants; and

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

                  SECTION 2.10. Notices to Depository. Whenever a notice or
other communication to the Noteholders is required under this Indenture, unless
and until Definitive Notes shall have been issued to Note Owners pursuant to
Section 2.11, the Trustee shall give all such notices and communications
specified herein to be given to Holders of the Notes to the Depository and shall
have no obligation to the Note Owners.

                  SECTION 2.11. Definitive Notes. If (i) the SPC advises the
Trustee in writing that the Depository is no longer willing or able properly to
discharge its responsibilities with respect to the Notes, and the SPC is unable
to locate a qualified successor, (ii) the SPC at its option advises the Trustee
in writing that it elects to terminate the book-entry system through the
Depository or (iii) after the occurrence of an Event of Default, a Note Majority
advises the Trustee and the Depository in writing that the continuation of a
book-entry system through the Depository is no longer in the best interests of
the Note Owners, then the Depository shall notify all Note Owners and the
Trustee of the occurrence of any such event and of the availability of
Definitive Notes to Note Owners requesting the same. Upon surrender to the
Trustee of the Note or Notes representing the Book-Entry Notes by the
Depository, accompanied by registration instructions, the Issuer shall execute
and the Trustee shall authenticate the Definitive Notes in accordance with the
instructions of the Depository. None of the Issuer, the Note Registrar or the
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, all references herein to obligations
imposed upon or to be performed by the Depository shall be deemed to be imposed
upon and performed by the Trustee or a Paying Agent (if other than the Trustee),
to the extent applicable with respect to such Definitive Notes, and the Trustee
shall recognize the Holders of the Definitive Notes as Noteholders.

                  SECTION 2.12. Calculations. Interest on the Class A-1 Notes
will be calculated on the basis of actual days elapsed in a year of 360 days.
All calculations of the amount of interest accrued on the Class A-2, Class A-3,
Class A-4, Class B, Class C and Class D Notes, and all calculations of

                                      -33-
<PAGE>

the amount of the Servicing Fee, shall be made on the basis of a 360-day year
consisting of twelve 30- day months.

                                   ARTICLE III

                                    Covenants
                                    ---------

                  SECTION 3.01. Payment of Principal and Interest. The Issuer
will duly and punctually pay the principal and interest on the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting the
foregoing, the Issuer will cause to be distributed all amounts on deposit in the
Collection Account on a Payment Date in accordance with Section 8.03. 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 3.02. Maintenance of Office or Agency. The Issuer will
maintain in the City of St. Paul, Minnesota, 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 Trustee to serve as its agent
for the foregoing purposes. The Issuer will give prompt written notice to the
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 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 Trustee as its agent to receive all
such surrenders, notices and demands.

                  SECTION 3.03. Money for Payments To Be Held in Trust. As
provided in Section 8.03, all payments of amounts due and payable with respect
to any Notes that are to be made from amounts withdrawn from the Collection
Account pursuant to Section 8.03(b) shall be made on behalf of the Issuer by the
Trustee or by another Paying Agent, and no amounts so withdrawn from the
Collection Account for payments of Notes shall be paid over to the Issuer.

                  On or before the Business Day preceding each Payment 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, such sum to be held in trust for the benefit of the Persons entitled
thereto and (unless the Paying Agent is the Trustee) shall promptly notify the
Trustee of its action or failure so to act.

                  The Issuer will cause each Paying Agent other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee (and if the Trustee

                                      -34-
<PAGE>

acts as Paying Agent, it hereby so agrees), subject to the provisions of this
Section, that such Paying Agent will:

                  (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 Trustee notice of any default (of which it has
         actual knowledge) by the Issuer (or any other obligor upon the Notes)
         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 Trustee, forthwith pay to the Trustee
         all sums so held in trust by such Paying Agent;

                  (iv) immediately resign as a Paying Agent and forthwith pay to
         the 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 Paying
         Agent at the time of its appointment; and

                  (v) comply with all requirements of the Code 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.

                  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 Paying Agent to pay to the Trustee all sums held in trust by
such Paying Agent, such sums to be held by the Trustee upon the same trusts as
those upon which the sums were held by such Paying Agent; and upon such payment
by any Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

                  Subject to applicable laws with respect to escheat of funds,
any money held by the Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such trust
and upon Issuer Request shall be deposited by the Trustee in the Collection
Account; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense 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 St. Paul,
Minnesota, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any

                                      -35-
<PAGE>

unclaimed balance of such money then remaining will be repaid to or for the
account of the Issuer. The Trustee may also adopt and employ, at the expense of
the Issuer, any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to Holders
whose Notes have been called but have not been surrendered for redemption or
whose right to or interest in moneys due and payable but not claimed is
determinable from the records of the Trustee or of any Paying Agent, at the last
address of record for each such Holder).

                  SECTION 3.04. Existence. The Issuer will keep in full effect
its existence, rights and franchises as a limited liability company 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 will keep in full effect its
existence, rights and franchises under the laws of such other jurisdiction) and
will 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 Leases and each other
instrument or agreement included in the Trust Estate.

                  SECTION 3.05. Protection of Trust Estate. The Issuer intends
the security interest Granted pursuant to this Indenture in favor of the Trustee
to be prior to all other liens in respect of the Trust Estate, and the Issuer
shall take all actions necessary to obtain and maintain, in favor of the
Trustee, for the benefit of the Noteholders, a first lien on and a first
priority, perfected security interest in the Trust Estate. The Issuer will 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, all as prepared by the Servicer and delivered
to the Issuer, and will take such other action necessary or advisable to:

                  (i) grant more effectively all or any portion of the Trust
         Estate;

                  (ii) maintain or preserve the lien and security interest (and
         the priority thereof) in favor of the Trustee for the benefit of the
         Trustee created by this Indenture or carry out more effectively the
         purposes hereof;

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

                  (iv) enforce any of the Leases and each other instrument or
         agreement included in the Trust Estate;

                  (v) preserve and defend title to the Trust Estate and the
         rights of the Trustee in such Trust Estate against the claims of all
         persons and parties; or

                                      -36-
<PAGE>

                  (vi) pay all taxes or assessments levied or assessed upon the
         Trust Estate when due.

The Issuer hereby designates the Trustee its agent and attorney-in-fact to
execute any financing statement, continuation statement or other instrument
required by the Trustee pursuant to this Section 3.05.

                  SECTION 3.06. Opinions as to Trust Estate.

                  (a) On the Closing Date, the Issuer shall furnish to the
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 first priority lien and security interest in favor of the Trustee,
for the benefit of the Trustee, 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 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 Trustee an Opinion of Counsel with respect
to each jurisdiction in which the Leases are located or a Uniform Commercial
Code financing statement has been filed by the Servicer 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 as
is necessary to maintain the first priority 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 will, 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 3.07. Performance of Obligations; Servicing of Leases.

                  (a) The Issuer will not take any action and will 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 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, the Contribution and Servicing Agreement
or such other instrument or agreement.

                                      -37-
<PAGE>

                  (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 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 to assist the Issuer in performing its duties under
this Indenture.

                  (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Related Documents
and in the instruments and agreements included in the Trust Estate, including
but not limited to filing or causing to be filed all UCC financing statements
and continuation statements required to be filed by the terms of this Indenture
and the Contribution and Servicing Agreement in accordance with and within the
time periods provided for herein and therein. Except as expressly provided
herein, the Issuer shall not waive, amend, modify, supplement or terminate any
of its Related Documents or any provision thereof without the consent of the
Trustee or a Note Majority.

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

                  (e) Upon any termination of the Servicer's rights and powers
pursuant to the Contribution and Servicing Agreement, the Issuer shall promptly
notify the Rating Agencies.

                  (f) The Issuer agrees that it will not waive timely
performance or observance by the Servicer or the SPC of their respective duties
under the Related Documents if the effect thereof would adversely affect the
Holders of the Notes.

                  SECTION 3.08. Negative Covenants. Until the Termination Date,
the Issuer shall not:

                  (i) except as expressly permitted by this Indenture, sell,
         transfer, exchange or otherwise dispose of any of the properties or
         assets of the Issuer, including those included in the Trust Estate,
         unless directed to do so by the 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
         applicable state law) or assert any claim against any present or former
         Noteholder by reason of the payment of the taxes levied or assessed
         upon any part of the Trust Estate;

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

                                      -38-
<PAGE>

                  (iv) permit the validity or effectiveness of this Indenture to
         be impaired, or permit the lien in favor of the Trustee created by 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;

                  (v) permit any lien, charge, excise, claim, security interest,
         mortgage or other encumbrance (other than the lien in favor of the
         Trustee created by this Indenture) to be created on or extend to or
         otherwise arise upon or burden the 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 the Equipment and arising solely as a result of an action
         or omission of the related Obligor);

                  (vi) permit the lien in favor of the Trustee created by this
         Indenture not to constitute a valid first priority (other than with
         respect to any such tax, mechanics' or other lien described in clause
         (v) above) security interest in the Trust Estate; or

                  (vii) amend, modify or fail to comply with the provisions of
         the Related Documents without the prior written consent of the Trustee.

                  SECTION 3.09. Annual Statement as to Compliance. The Issuer
will deliver to the Trustee, within 120 days after the end of each fiscal year
of the Issuer (commencing with the fiscal year ended December 31, 2000), 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 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 the compliance of 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 or Merge 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,

                                      -39-
<PAGE>

         executed and delivered to the Trustee, in form and substance
         satisfactory to the 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 and each
         other Related Document 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
         which shall be delivered to and shall be satisfactory to the Trustee to
         the effect that such transaction will not have any material adverse tax
         consequence to the Issuer or any Noteholder;

                  (v) any action as is necessary to maintain the lien and
         security interest created in favor of the Trustee by this Indenture
         shall have been taken;

                  (vi) the Issuer shall have delivered to the Trustee an
         Officer's Certificate and an Opinion of Counsel (which shall describe
         the actions taken as required by clause (a)(v) of this Section or state
         that no such actions will be taken) 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 compiled with (including any
         filing required by the Exchange Act); and

                  (vii) the Issuer or the Person (if other than the Issuer)
         formed by or surviving such consolidation or merger has a net worth,
         immediately after such consolidation or merger, that is (a) greater
         than zero and (b) not less than the net worth of the Issuer immediately
         prior to giving effect to such consolidation or merger.

                  (b) The Issuer shall not convey or transfer all or
substantially all of its properties or assets, including those included in the
Trust Estate, to any Person (except as expressly permitted by the Indenture or
the Contribution and Servicing Agreement), unless

                  (i) the Person that acquires by conveyance or transfer the
         properties and assets of the Issuer 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 assume, by an indenture
         supplemental hereto, executed and delivered to the Trustee, in form and
         substance satisfactory to the 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 and each
         Related Document on the part of the Issuer to be performed or observed,
         all as provided

                                      -40-
<PAGE>

         herein, (C) expressly agree 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 Holders of the Notes, (D)
         unless otherwise provided in such supplemental indenture, expressly
         agree 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 agree 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
         which shall be delivered to and shall be satisfactory to the Trustee to
         the effect that such transaction will not have any material adverse tax
         consequence to the Trust or any Noteholder;

                  (v) any action as is necessary to maintain the lien and
         security interest created in favor of the Trustee by this Indenture
         shall have been taken;

                  (vi) the Issuer shall have delivered to the Trustee an
         Officer's Certificate and an Opinion of Counsel (which shall describe
         the actions taken as required by clause (b)(v) of this Section or that
         no such actions will be taken) 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); and

                  (vii) the Person acquiring by conveyance or transfer the
         properties or assets of the Issuer has a net worth, immediately after
         such conveyance or transfer, that is (a) greater than zero and (b) not
         less than the net worth of the Issuer immediately prior to giving
         effect to such conveyance or transfer.

                  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.

                                      -41-
<PAGE>

                  (b) Upon a conveyance or transfer of all the assets and
properties of the Issuer pursuant to Section 3.10(b), the Issuer will 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 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, purchasing, owning, selling and managing
the Leases and the related Equipment in the manner contemplated by this
Indenture and the Related 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 (i) the Notes and (ii) any other Indebtedness permitted
by or arising under the Related Documents. The proceeds of the Notes shall be
used exclusively to fund the Depositor's purchase of the Leases and the other
assets specified in the Contribution and Servicing Agreement and to pay the
Issuer's organizational, transactional and start-up expenses.

                  SECTION 3.14. Servicer's Obligations. The Issuer shall monitor
the performance of the Servicer under the Contribution and Servicing Agreement,
and shall use its reasonable good faith efforts to cause the Servicer duly and
punctually to perform all of its duties and obligations thereunder.

                  SECTION 3.15. Guarantees, Loans, Advances and Other
Liabilities. Except as contemplated by the Contribution and Servicing Agreement
or this Indenture, 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
assuming 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, any other interest in, or make any capital
contribution to, any other Person.

                  SECTION 3.16. Income Tax Characterization. The SPC has
structured this Indenture and the Notes with the intention that the Notes will
qualify under applicable federal, state, local and foreign tax law as
indebtedness of the SPC secured by the Leases. The SPC, the Servicer, each
Noteholder and each Note Owner agree to treat and to take no action inconsistent
with the treatment of the Notes as such indebtedness for purposes of federal,
state, local and foreign income or franchise taxes and any other tax imposed on
or measured by income. Each Noteholder and each Note Owner, by acceptance of its
Note or beneficial interest therein, agrees to be bound by the provisions of
this Section. Each Noteholder agrees that it will cause any Note Owner acquiring
an interest in a Note through it to comply with this Indenture as to treatment
as indebtedness under applicable tax law, as described in this Section.

                                      -42-
<PAGE>

                  SECTION 3.17. Restricted Payments. Except as expressly
permitted by this Indenture or the Contribution and Servicing Agreement, 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 any owner of a membership 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, (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. The Issuer will
not, directly or indirectly, make payments to or distributions from any of the
Trust Accounts except in accordance with this Indenture and the Related
Documents.

                  SECTION 3.18. Notice of Events of Default. The Issuer agrees
to give the Trustee and the Rating Agencies prompt written notice of each Event
of Default hereunder and each default on the part of the Servicer or the SPC of
its obligations under the Contribution and Servicing Agreement.

                  SECTION 3.19. Further Instruments and Acts. Upon request of
the Trustee, the Issuer will 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 3.20. Compliance with Laws. The Issuer shall comply
with the requirements of all applicable laws, the non-compliance with which
would, individually or in the aggregate, materially and adversely affect the
ability of the Issuer to perform its obligations under the Notes, this Indenture
or any Related Document.

                  SECTION 3.21. Amendments of Contribution and Servicing
Agreement. The Issuer shall not agree to any amendment to Section 9.1 of the
Contribution and Servicing Agreement to eliminate the requirements thereunder
that the Trustee or the Holders of the Notes consent to amendments thereto as
provided therein.

                  SECTION 3.22. Issuer Obligation. No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer or the
Trustee on the Notes or under this Indenture or any certificate or other writing
delivered in connection herewith or therewith, against (i) the Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director, employee or
agent of the Trustee in its individual capacity, any holder of a beneficial
interest in the Issuer or the Trustee or of any successor or assign of the
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Trustee has no such obligations in its
individual capacity) 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.

                                      -43-
<PAGE>

                                   ARTICLE IV

                           Satisfaction and Discharge
                           --------------------------

                  SECTION 4.01. 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 and interest thereon, (iv) Sections 3.03, 3.04,
3.05, 3.07, 3.08, 3.10, 3.12, 3.13, 3.16, 3.20 and 3.21, (v) the rights,
obligations and immunities of the Trustee hereunder (including the rights of the
Trustee under Section 6.07 and the obligations of the Trustee under Section
4.02) and (vi) the rights of Noteholders as beneficiaries hereof with respect to
the property so deposited with the Trustee payable to all or any of them, and
the 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

                           (1) 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
                  2.05 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 3.03) have been delivered
                  to the Trustee for cancellation; or

                           (2) all Notes not theretofore delivered to the
                  Trustee for cancellation

                                    (i) have become due and payable, or

                                    (ii) will become due and payable at their
                           Stated Maturity Date within one year, or

                                    (iii) are to be called for redemption within
                           one year under arrangements satisfactory to the
                           Trustee for the giving of notice of redemption by the
                           Trustee in the name, and at the expense, of the
                           Issuer,

                  and the Issuer, in the case of (i), (ii) or (iii) above, has
                  irrevocably deposited or caused to be irrevocably deposited
                  with the Trustee as part of the Trust Estate 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 in an Eligible Account in the name of
                  the Trustee for such purpose, in an amount sufficient to pay
                  and discharge the entire indebtedness on such Notes not
                  theretofore delivered to the Trustee for

                                      -44-
<PAGE>

                  cancellation when due to their Stated Maturity Date or
                  Redemption Date (if Notes shall have been called for
                  redemption pursuant to Section 10.01(a)), as the case may be;

                  (B) the Issuer has paid or caused to be paid all Secured
         Obligations; and

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

                  SECTION 4.02. Application of Trust Money. All moneys deposited
with the Trustee pursuant to Section 4.01 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 Paying Agent, as the Trustee may
determine, to the Holders of the particular Notes for the payment or redemption
of which such moneys have been deposited with the Trustee, of all sums due and
to become due thereon for principal and interest; but such moneys need not be
segregated from other funds except to the extent required herein or in the
Contribution and Servicing Agreement or required by law.

                  SECTION 4.03. Repayment of Moneys Held by Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to
the Notes, all moneys then held by any Paying Agent other than the Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Trustee to be held and applied according to
Section 3.03 and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

                  SECTION 4.04. Release of Trust Estate. The Trustee shall, on
or after the Termination Date, release any remaining portion of the Trust Estate
from the lien created by this Indenture and deposit in the Collection Account
any funds then on deposit in any other Trust Account. The Trustee shall release
property from the lien created by this Indenture pursuant to this Section 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 ss 314(c) and 314(d)(1) meeting the applicable requirements
of Section 11.01.

                                      -45-
<PAGE>

                                    ARTICLE V

                                    Remedies
                                    --------

                  SECTION 5.01. Events of Default. "Event of Default," wherever
used herein, means 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 when
         the same becomes due and payable, and such default shall continue for a
         period of five days; or

                  (ii) default in the payment of the principal of any Note on
         the Redemption Date or Stated Maturity Date applicable thereto; or

                  (iii) default in the observance or performance in any material
         respect of any 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
         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 30 days after there
         shall have been given, by registered or certified mail, to the Issuer
         by the Trustee or to the Issuer and the Trustee by the Holders of at
         least 25% of the Outstanding Amount of the Notes, 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 commencement of an involuntary case against the
         Issuer or the SPC under any applicable Federal or state bankruptcy,
         insolvency or other similar law now or hereafter in effect, and such
         case is not dismissed within 60 days; or

                  (v) (A) the commencement by the Issuer or the SPC of a
         voluntary case under any applicable Federal or state bankruptcy,
         insolvency or other similar law now or hereafter in effect, (B) the
         entry of an order for relief in an involuntary case against the Issuer
         or the SPC under any such law, (C) the consent by the Issuer or the SPC
         to the entry of any such order for relief, (D) the consent by the
         Issuer or the SPC to the appointment or taking possession by a
         receiver, liquidator, assignee, custodian, trustee, sequestrator or
         similar official of the Issuer or the SPC or for any substantial part
         of the Trust Estate, (E) the making by the Issuer or the SPC of any
         general assignment for the benefit of creditors, (F) the failure by the
         Issuer or the SPC

                                      -46-
<PAGE>

         generally to pay its debts as such debts become due, (G) the
         liquidation of the Issuer or the SPC, or (H) the taking of action by
         the Issuer or the SPC, as applicable, in furtherance of any of the
         foregoing.

                  The Issuer shall deliver to the Trustee, within five days
after obtaining knowledge of 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) or (iv), its
status and what action the Issuer is taking or proposes to take with respect
thereto.

                  SECTION 5.02. Rights upon Event of Default.

                  If an Event of Default shall have occurred and be continuing,
the Trustee or holders of (1) 66-2/3% of the Class A Notes, or (2) if the Class
A Notes have been paid in full, 66-2/3% of the Class B Notes, or (3) if the
Class A Notes and the Class B Notes have been paid in full, 66-2/3% of the Class
C Notes or (4) if the Class A Notes, Class B Notes and Class C Notes have been
paid in full, 66-2/3% of the Class D Notes (the "Controlling Noteholders") may,
upon prior written notice to the Rating Agencies, declare by written notice to
the Issuer that the Notes become, whereupon they shall become, immediately due
and payable at par, together with accrued interest thereon. Notwithstanding
anything to the contrary in this Section, if an Event of Default specified in
Section 5.01(iv) or (v) shall occur and be continuing, the Notes shall become
immediately due and payable at par, together with accrued interest thereon. If
an Event of Default shall have occurred and be continuing, the Trustee may
exercise any of the remedies specified in Sections 5.03 and 5.04.

                  SECTION 5.03. Collection of Indebtedness and Suits for
Enforcement by Trustee; Authority of Trustee.

                  (a) The Issuer covenants that if any Notes are accelerated
following the occurrence of an Event of Default, the Issuer will, upon demand of
the Trustee, pay to it, for the benefit of the Holders of such Notes, 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 Interest Rate 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 Trustee and
its agents and counsel.

                  (b) If an Event of Default occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the
rights of the Noteholders, by such appropriate Proceedings as the 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 Trustee by this Indenture or by law.

                                      -47-
<PAGE>

                  (c) In case there shall be pending, relative to the Issuer,
the SPC or any other obligor upon the Notes or any Person having or claiming an
ownership interest in the 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, the SPC or such other obligor
or Person, or its property, or in case of any other comparable judicial
Proceedings relative to the Issuer, the SPC or other obligor upon the Notes, or
to the creditors or property of the Issuer, the SPC or such other obligor, the
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 Trustee shall have made any demand pursuant to the provisions of
this Section, 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 Trustee (including any claim for
         reasonable compensation to the Trustee and each predecessor Trustee,
         and their respective agents, attorneys and counsel, and for
         reimbursement of all expenses and liabilities incurred, and all
         advances made, by the Trustee and each predecessor 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 Holders of Notes in any election of a trustee, a
         standby trustee or Person performing similar functions in any such
         Proceedings;

                  (iii) to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute all amounts
         received with respect to the claims of the Noteholders and of the
         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 Trustee or the Holders of Notes 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 Trustee, and, in the event that the Trustee shall consent to the
making of payments directly to such Noteholders, to pay to the Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Trustee,
each predecessor Trustee and their respective agents, attorneys and counsel, and
all other expenses and liabilities incurred, and all advances made, by the
Trustee and each predecessor Trustee except as a result of negligence or bad
faith.

                                      -48-
<PAGE>

                  (d) Nothing herein contained shall be deemed to authorize the
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 Holder thereof or to
authorize the 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.

                  (e) All rights of action and of asserting claims under this
Indenture or under any of the Notes, may be enforced by the 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 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 Trustee, each predecessor Trustee and their respective
agents and attorneys, shall be for the ratable benefit of the Holders of the
Notes.

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

                  SECTION 5.04. Remedies. If an Event of Default shall have
occurred and be continuing, the Trustee may (subject to Section 5.05) and, in
the case of an Event of Default described in Section 5.01(iv) or (v), shall, as
to the actions described in the following clauses (i), (ii) and (iii):

                  (i) institute Proceedings in its own name and as or on behalf
         of a 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 moneys
         adjudged due;

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

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

                  (iv) sell the 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, that the
         Trustee may not sell or otherwise liquidate the Trust Estate following
         an Event of Default unless

                                      -49-
<PAGE>

                  (A) the Holders of 100% of the Outstanding Amount of the Notes
         consent thereto,

                  (B) the proceeds of such sale distributable to the Noteholders
         will be sufficient to discharge in full all amounts then due and unpaid
         upon such Notes for principal and interest, or

                  (C) the Trustee determines that the 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 the Trustee provides prior
         written notice to the Rating Agencies and obtains the consent of
         Holders of 66-2/3% of the Outstanding Amount of each Class of Notes.

In determining such sufficiency or insufficiency with respect to clause (B) or
(C), the 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 Trust
Estate for such purpose.

                  SECTION 5.05. Optional Preservation of the Leases. If any
Notes have been declared to be due and payable under Section 5.02 following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled, the Trustee may, but need not, elect to maintain
possession of the Trust Estate. 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 Trustee shall take such desire
into account when determining whether or not to maintain possession of the Trust
Estate. In determining whether to maintain possession of the Trust Estate, the
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 Trust
Estate for such purpose.

                  SECTION 5.06. Priorities.

                  If the Trustee collects any money or property pursuant to this
Article V, including any money or property in respect of liquidation of the
Trust Estate pursuant to Section 5.04(a)(iv), the Trustee shall pay as promptly
as practicable out the money or property in the following order:

                  FIRST: amounts due and owing and required to be distributed to
         the Servicer pursuant to priority (iv) and (v) of Section 8.03 and not
         previously distributed;

                  SECOND: amounts due and owing to the Trustee pursuant to
         Section 6.07;

                                      -50-
<PAGE>

                  THIRD: to Class A Noteholders for amounts unpaid on the Class
         A Notes for interest, ratably, without preference or priority of any
         kind, according to the amounts due and payable on the Class A Notes for
         interest;

                  FOURTH: to Class B Noteholders for amounts due and unpaid on
         the Class B Notes for interest, ratably, without preference or priority
         of any kind, according to the amounts due and payable on the Class B
         Notes for interest;

                  FIFTH: to Class C Noteholders for amounts due and unpaid on
         the Class C Notes for interest, ratably, without preference or priority
         of any kind, according to the amounts due and payable on the Class C
         Notes for interest;

                  SIXTH: to Class D Noteholders for amounts due and unpaid on
         the Class D Notes for interest, ratably, without preference or priority
         of any kind, according to the amounts due and payable on the Class D
         Notes for interest;

                  SEVENTH: to Class A-1 Noteholders for amounts 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;

                  EIGHTH: to the Class A-2, Class A-3 and Class A-4 Noteholders
         for amounts unpaid on the Class A-2, Class A-3 and 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-2, Class A-3
         and Class A-4 Notes for principal;

                  NINTH: to Class B Noteholders for amounts 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;

                  TENTH: to Class C Noteholders for amounts unpaid on the Class
         C Notes for principal, ratably, without preference or priority of any
         kind, according to the amounts due and payable on the Class C Notes for
         principal;

                  ELEVENTH: to Class D Noteholders for amounts unpaid on the
         Class D Notes for principal, ratably, without preference or priority of
         any kind, according to the amounts due and payable on the Class D Notes
         for principal;

                  TWELFTH: the remainder, if any, to the Issuer.

                                      -51-
<PAGE>

                  SECTION 5.07. Limitation of Suits. No Holder of any Note 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:

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

                  (ii) the Holders of not less than 25% of the Outstanding
         Amount of the Notes have made written request to the Trustee to
         institute such Proceeding in respect of such Event of Default in its
         own name as Trustee hereunder;

                  (iii) such Holder or Holders have offered to the Trustee
         reasonable indemnity against the costs, expenses and liabilities to be
         incurred in complying with such request;

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

                  (v) no direction inconsistent with such written request has
         been given to the Trustee during such 60-day period by the Holders of a
         majority of the Outstanding Amount of the Notes;

it being understood and intended that no one or more Holders of Notes 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
Holders of Notes or to obtain or to seek to obtain priority or preference over
any other Holders or to enforce any right under this Indenture, except in the
manner herein provided.

                  In the event the Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Outstanding Amount of the Notes,
the Trustee may conclusively rely on and act upon the request of the group
representing the largest Outstanding Amount of the Notes.

                  SECTION 5.08. Unconditional Rights of Noteholders To Receive
Principal and Interest. Notwithstanding any other provisions in this Indenture,
the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest on such 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 Holder.

                  SECTION 5.09. Restoration of Rights and Remedies. If the
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such

                                      -52-
<PAGE>

Proceeding has been discontinued or abandoned for any reason or has been
determined adversely to the Trustee or to such Noteholder, then and in every
such case the Issuer, the 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
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.

                  SECTION 5.10. Rights and Remedies Cumulative. No right or
remedy herein conferred upon or reserved to the 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 5.11. Delay or Omission Not a Waiver. No delay or
omission of the Trustee or any Holder of any Note 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 an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Trustee or to the Noteholders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Noteholders, as the
case may be.

                  SECTION 5.12. Control by Noteholders. The Holders of a
majority of the Outstanding Amount of the Notes shall have the right to direct
the time, method and place of conducting any Proceeding for any remedy available
to the Trustee with respect to the Notes or exercising any trust or power
conferred on the Trustee; provided that

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

                  (ii) subject to the express terms of Section 5.04, any
         direction to the Trustee to sell or liquidate all or any portion of the
         Trust Estate shall be by the Holders of Notes representing not less
         than 100% of the Outstanding Amount of the Notes; and

                  (iii) the Trustee may take any other action deemed proper by
         the Trustee that is not inconsistent with such direction; provided,
         however, that, subject to Section 6.01, the Trustee need not take any
         action that it determines might involve it in liability or might
         materially adversely affect the rights of any Noteholders not
         consenting to such action.

                  SECTION 5.13. Waiver of Past Defaults.

                  The Holders of Notes of not less than a majority of the
Outstanding Amount of the Notes may waive any past Default or Event of Default
and its consequences except a Default (a) in payment of principal of or interest
on any of the Notes or (b) in respect of a covenant or provision

                                      -53-
<PAGE>

hereof which cannot be modified or amended without the consent of the Holder of
each Note. In the case of any such waiver, the Issuer, the Trustee and the
Holders of the Notes 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 5.14. Undertaking for Costs. All parties to this
Indenture agree, and each Holder of any Note by such Holder'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 Trustee for any action taken, suffered or omitted by it as
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 shall not apply to (a) any suit instituted by the Trustee, (b) any suit
instituted by any Noteholder, or group of Noteholders, in each case holding in
the aggregate more than 10% of the Outstanding Amount of the Notes 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 5.15. Waiver of Stay or Extension Laws. The Issuer
covenants (to the extent that it may lawfully do so) that it will 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 advantages of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted to
the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

                  SECTION 5.16. Action on Notes. The 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 Trustee or the Noteholders shall be impaired by the recovery of any
judgment by the Trustee against the Issuer or by the levy of any execution under
such judgment upon any portion of the Trust Estate or upon any of the assets of
the Issuer.

                  SECTION 5.17. Performance and Enforcement of Certain
Obligations.

                                      -54-
<PAGE>

                  (a) Promptly following a request from the Trustee to do so and
at the Depositor's expense, the Issuer agrees to take all such lawful action as
the Trustee may request to compel or secure the performance and observance by
the SPC or the Servicer, as applicable, of each of their obligations to the
Issuer under or in connection with the Contribution and Servicing Agreement in
accordance with the terms thereof, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection
with the Contribution and Servicing Agreement to the extent and in the manner
directed by the Trustee, including the transmission of notices of default on the
part of the SPC or the Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the SPC
or the Servicer of each of their obligations under the Contribution and
Servicing Agreement.

                  (b) If an Event of Default has occurred and is continuing, the
Trustee may, and at the direction (which direction shall be in writing,
including facsimile) of the Holders of at least 66-2/3% of the Outstanding
Amount of the Notes shall, exercise all rights, remedies, powers, privileges and
claims of the Issuer against the SPC or the Servicer under or in connection with
the Contribution and Servicing Agreement, including the right or power to take
any action to compel or secure performance or observance by the SPC or the
Servicer of each of their obligations to the Issuer thereunder and to give any
consent, request, notice, direction, approval, extension or waiver under the
Contribution and Servicing Agreement, and any right of the Issuer to take such
action shall be suspended.

                                   ARTICLE VI

                                   The Trustee
                                   -----------

                  SECTION 6.01. Duties of Trustee.

                  (a) If an Event of Default has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture with
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 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 Trustee; and

                  (ii) in the absence of bad faith on its part, the 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 Trustee and conforming to the requirements of
         this

                                      -55-
<PAGE>

         Indenture; however, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture and, if applicable, the Trustee's other Related
         Documents.

                  (c) The 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;

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

                  (iii) the 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 5.12.

                  (d) Every provision of this Indenture that in any way relates
to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

                  (e) The Trustee shall not be liable for interest on any money
received by it.

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

                  (g) No provision of this Indenture shall require the 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 repayments
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

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

                  (i) In no event shall the Trustee be required to perform, or
be responsible for the manner of performance of, any of the obligations of the
Servicer, or any other party, under the Contribution and Servicing Agreement,
except during such time, if any, as the Trustee shall be the successor to, and
be vested with the rights, powers, duties and privileges of the Servicer, in
accordance with the terms of the Contribution and Servicing Agreement.

                                      -56-
<PAGE>

                  (j) The Trustee shall, and hereby agrees that it will, perform
all of the obligations and duties required of it under the Contribution and
Servicing Agreement.

                  (k) Without limiting the generality of this Section, the
Trustee shall have no duty (i) to see to any recording, filing or depositing of
this Indenture or any agreement referred to herein or any financing statement
evidencing a security interest in the Equipment, or to see to the maintenance of
any such recording or filing or depositing or to any recording, refiling or
redepositing of any thereof, (ii) to see to any insurance of the Equipment or
Obligors or to effect or maintain any such insurance, (iii) except as
specifically provided in the Contribution and Servicing Agreement, to see to the
payment or discharge of any tax, assessment or other governmental charge or any
Lien or encumbrance of any kind owing with respect to, assessed or levied
against any part of the Trust Estate, (iv) to confirm or verify the contents
(other than compliance as to form) of any reports or certificates delivered to
the Trustee pursuant to this Indenture or the Contribution and Servicing
Agreement believed by the Trustee to be genuine and to have been signed or
presented by the proper party or parties, or (v) to inspect the Equipment at any
time or ascertain or inquire as to the performance of observance of any of the
Issuer's, the Depositor's or the Servicer's representations, warranties or
covenants or the Servicer's duties and obligations as Servicer under the
Contribution and Servicing Agreement.

                  (l) Except for actions expressly authorized by this Indenture
or the Contribution and Servicing Agreement or taken by the Trustee pursuant to
Section 6.01(a), the Trustee shall take no action reasonably likely to impair
(i) the interests of the Trust Estate in any contract or agreement now existing
or hereafter created or (ii) the value of any contract or agreement now existing
or hereafter created.

                  (m) The Trustee shall have no power to vary the corpus of the
Trust Estate, except as expressly provided in this Indenture.

                  (n) In the event that the Note Registrar or the Paying Agent
(if other than the Trustee) shall fail to perform any obligation, duty or
agreement in the manner or on the day required to be performed by the Note
Registrar or the Paying Agent, as the case may be, under this Indenture, the
Trustee shall be obligated, as soon as possible upon knowledge of a Responsible
Officer thereof and receipt of appropriate records, if any, to perform such
obligation, duty or agreement in the manner so required.

                  (o) The Trustee shall not be required to take notice or be
deemed to have notice or knowledge of any Event of Default (other than an Event
of Default pursuant to Section 5.01(i) or (ii)) unless a Responsible Officer of
the Trustee shall have received written notice thereof or otherwise has actual
knowledge thereof. In the absence of receipt of such notice or knowledge, the
Trustee may conclusively assume that there is no Event of Default.

                                      -57-
<PAGE>

                  SECTION 6.02. Rights of Trustee.

                  Except as otherwise provided in Section 6.01:

                  (a) the Trustee may rely on any document believed by it to be
         genuine and to have been signed or presented by the proper person. The
         Trustee need not (except under the circumstances described in paragraph
         (g) below) investigate any fact or matter stated in the document;

                  (b) before the Trustee acts or refrains from acting, it may
         require an Officer's Certificate (with respect to factual matters) or
         an Opinion of Counsel, as applicable. The Trustee shall not be liable
         for any action it takes or omits to take in good faith in reliance on
         the Officer's Certificate or Opinion of Counsel, as applicable, or as
         directed by the requisite amount of Note Owners as provided herein;

                  (c) the 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 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 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 the Trustee's
         conduct does not constitute willful misconduct, negligence or bad
         faith;

                  (e) the 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 Trustee shall be under no obligation to exercise any
         of the rights or powers vested in it by this Indenture at the request,
         order or direction of any of the Holders of Notes, pursuant to the
         provisions of this Indenture, unless such Holders of Notes shall have
         offered to the Trustee reasonable security or indemnity against the
         costs, expenses and liabilities that may be incurred therein or
         thereby; provided, however, that the Trustee shall, upon the occurrence
         of an Event of Default (that has not been cured), exercise the rights
         and powers vested in it by this Indenture with 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;

                  (g) the Trustee shall not be bound to make any investigation
         into the facts or matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice,

                                      -58-
<PAGE>

         request, consent, order, approval, bond or other paper or document,
         unless requested in writing to do so by the Holders of Notes evidencing
         not less than 25% of the Outstanding Amount thereof; provided, however,
         that if the payment within a reasonable time to the Trustee of the
         costs, expenses or liabilities likely to be incurred by it in the
         making of such investigation is, in the opinion of the Trustee, not
         reasonably assured to the Trustee by the security afforded to it by the
         terms of this Indenture or the Contribution and Servicing Agreement,
         the Trustee may require reasonable indemnity against such cost, expense
         or liability as a condition to so proceeding; the reasonable expense of
         every such examination shall be paid by the Person making such request,
         or, if paid by the Trustee, shall be immediately reimbursed by the
         Person making such request upon demand; and

                  (h) The right of the Trustee to perform any discretionary act
         enumerated in this Indenture shall not be construed as a duty, and the
         Trustee shall not be answerable for other than its negligence or
         willful misconduct in the performance of such act.

                  SECTION 6.03. Individual Rights of Trustee. The 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 Trustee. Any Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Trustee is required to comply with Sections 6.11 and 6.12.

                  SECTION 6.04. Trustee's Disclaimer. The Trustee shall not be
responsible for and, except as provided in Section 6.13, makes no representation
as to the validity or adequacy of this Indenture, the Trust Estate or the Notes,
it shall not be accountable for the Issuer's use of the proceeds from the Notes,
and it shall not be responsible for any statement of the Issuer in the Indenture
or in any document issued in connection with the sale of the Notes or in the
Notes other than the Trustee's certificate of authentication.

                  SECTION 6.05. Notice of Defaults. If a Default occurs and is
continuing and if it is known to a Responsible Officer of the Trustee, the
Trustee shall mail to each Noteholder notice of the Default within 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 Trustee may withhold the notice if and so long as
a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Noteholders.

                  SECTION 6.06. Reports by Trustee to Holders. The Trustee shall
provide or cause to be provided to each Noteholder all such tax information as
may be required by law to be distributed to enable such holder to prepare its
federal and state income tax returns.

                                      -59-
<PAGE>

                  SECTION 6.07. Compensation and Indemnity.

                  (a) The Servicer, pursuant to the Contribution and Servicing
Agreement, has covenanted and agreed to pay to the Trustee, and the Trustee
shall be entitled to, certain annual fees and to reimburse the Trustee for all
ordinary and reasonable out-of-pocket expenses incurred or made by it in
connection with the performance of its duties hereunder (excluding those
incurred or made in the performance of its duties under Article V, as referred
to in paragraph (b) below). Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Trustee's agents,
counsel, accountants and experts.

                  (b) The Trustee shall also be entitled to reimbursement, from
moneys available therefor in accordance with Section 5.06, for all reasonable
out-of-pocket expenses (including the reasonable fees of any attorneys,
investment bankers and public accountants) incurred or made by it in connection
with the performance of its duties under Article V. When the Trustee incurs
expenses after the occurrence of a Default specified in Section 5.01(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. Notwithstanding anything
else set forth in this Indenture or the Related Documents, the Trustee agrees
that the obligations of the Issuer to the Trustee hereunder and under the
Related Documents shall be recourse to the Trust Estate only. In addition, the
Trustee agrees that its recourse to the Issuer or the Trust Estate shall be
limited to the right to receive the reimbursement referred to in the first
sentence of this paragraph.

                  (c) The Trustee and any director, officer, employee or agent
of the Trustee shall be indemnified by the Issuer and held harmless against any
loss, liability or reasonable expense incurred in connection with this Indenture
or the Notes, other than any loss, liability or expense incurred by reason of
willful misfeasance, bad faith or negligence in the performance by the Trustee
of its duties hereunder or any loss, liability or expense incurred by the
Trustee in connection with the performance of its duties pursuant to Section
6.01, including, without limitation, any such loss, liability or expense
incurred in connection with any legal action or resulting from any error in any
tax or information return prepared by any Person other than the Trustee.

                  SECTION 6.08. Replacement of Trustee. The Trustee may resign
at any time by so notifying the Issuer in writing. The Issuer may remove the
Trustee if:

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

                  (ii) a court having jurisdiction in the premises in respect of
         the Trustee in an involuntary case or proceeding under federal or state
         banking or bankruptcy laws, as now or hereafter constituted, or any
         other applicable federal or state bankruptcy, insolvency or other
         similar law, shall have entered a decree or order granting relief or
         appointing a receiver, liquidator, assignee, custodian, trustee,
         conservator, sequestrator (or similar official) for the

                                      -60-
<PAGE>

         Trustee or for any substantial part of the Trustee's property, or
         ordering the winding-up or liquidation of the Trustee's affairs;

                  (iii) an involuntary case under the federal bankruptcy laws,
         as now or hereafter in effect, or another present or future federal or
         state bankruptcy, insolvency or similar law is commenced with respect
         to the Trustee and such case is not dismissed within 60 days;

                  (iv) the Trustee commences a voluntary case under any federal
         or state banking or bankruptcy laws, as now or hereafter constituted,
         or any other applicable federal or state bankruptcy, insolvency or
         other similar law, or consents to the appointment of or taking
         possession by a receiver, liquidator, assignee, custodian, trustee,
         conservator, sequestrator (or other similar official) for the Trustee
         or for any substantial part of the Trustee's property, or makes any
         assignment for the benefit of creditors or fails generally to pay its
         debts as such debts become due or takes any corporate action in
         furtherance of any of the foregoing;

                  (v) the Trustee otherwise becomes incapable of acting; or

                  (vi) the rating assigned to the long-term unsecured debt
         obligations of the Trustee (or the holding company thereof) by the
         Rating Agencies shall be lowered below an investment grade rating or be
         withdrawn by any Rating Agency.

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

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee, to the Issuer and to each Rating Agency.
Thereupon the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and
duties of the Trustee under this Indenture. The successor Trustee shall mail a
notice of its succession to Noteholders. The retiring Trustee shall promptly
transfer all property held by it as Trustee to the successor Trustee.

                  If a successor Trustee does not take office within 30 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Issuer or the Holders of a majority in Outstanding Amount of the Notes may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

                  If the Trustee fails to comply with Section 6.11, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor Trustee.

                                      -61-
<PAGE>

                  Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor Trustee
pursuant to this Section and payment of all fees and expenses owed to the
retiring Trustee. Notwithstanding the replacement of the Trustee pursuant to
this Section, the retiring Trustee shall be entitled to payment or reimbursement
of such amounts as such Person is entitled pursuant to Section 6.07.

                  SECTION 6.09. Successor Trustee by Merger. If the 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 without any
further act shall be the successor Trustee; provided that no such merger,
conversion or consolidation shall relieve the Trustee of its obligation to
comply with Section 6.11. The Trustee shall provide the Rating Agencies prompt
notice of any such transaction.

                  In case at the time such successor or successors by merger,
conversion or consolidation to the 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 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 Trustee may authenticate such Notes either
in the name of any predecessor hereunder or in the name of the successor to the
Trustee; and in all such cases such certificates shall have the full force which
it is anywhere in the Notes or in this Indenture provided that the certificate
of the Trustee shall have.

                  SECTION 6.10. Appointment of Co-Trustee or Separate 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 Trust may at the time be located, the Trustee shall
have the power and may execute and deliver all instruments 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 Trust, or any part hereof, and, subject to the other provisions of this
Section, such powers, duties, obligations, rights and trusts as the 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 6.08.

                  (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 Trustee shall be conferred or imposed upon and
         exercised or performed by the Trustee and such

                                      -62-
<PAGE>

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

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

                  (iii) the 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 Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article 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
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 Trustee. Every such instrument shall be filed with the Trustee.

                  (d) Any separate trustee or co-trustee may at any time
constitute the 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 Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

                  SECTION 6.11. Eligibility; Disqualification. The Trustee shall
at all times satisfy the requirements of TIA s 310(a). The Trustee 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. The Trustee shall comply with TIA s
310(b), including the optional provision permitted by the second sentence of TIA
s 310(b)(9); provided, however, that there shall be excluded from the operation
of TIA s 310(b)(1) any indenture or indentures under which other securities of
the Issuer are outstanding if the requirements for such exclusion set forth in
TIA s 310(b)(1) are met.

                                      -63-
<PAGE>

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

                  SECTION 6.13. Representations and Warranties of the Trustee.
The Trustee represents and warrants as of the Closing Date that:

                  (i) the Trustee is a national banking association organized,
         existing and in good standing under the laws of the United States of
         America;

                  (ii) the Trustee has full power, authority and right to
         execute, deliver and perform this Indenture and each of the Trustee's
         Related Documents, and has taken all necessary action to authorize the
         execution, delivery and performance by it of this Indenture and each
         such Related Document; and

                  (iii) each of this Indenture and the Trustee's Related
         Documents has been duly executed and delivered by the Trustee and
         represents a legal, valid and binding obligation of the Trustee
         enforceable against the Trustee in accordance with its terms, except as
         such enforceability may be limited by applicable bankruptcy,
         insolvency, reorganization, moratorium or other similar laws now or
         hereafter in effect affecting the enforcement of creditors' rights in
         general and except as such enforceability may be limited by general
         principles of equity (whether considered in a suit at law or in
         equity).

                  SECTION 6.14. Servicer's Obligations. The Trustee shall,
subject to Section 6.01, use its reasonable good faith efforts to cause the
Servicer duly and punctually to perform all of its duties and obligations under
the Contribution and Servicing Agreement.

                                   ARTICLE VII

                         Noteholders' Lists and Reports
                         ------------------------------

                  SECTION 7.01. Note Registrar To Furnish Trustee Names and
Addresses to Noteholders. The Note Registrar will furnish or cause to be
furnished to the Trustee (a) not more than five days after the earlier of (i)
each Record Date and (ii) three months after the last Record Date, a list, in
such form as the Trustee may reasonably require, of the names and addresses of
the Holders of Notes as of such Record Date, (b) at such other times as the
Trustee may request in writing, within 30 days after receipt by the Note
Registrar of any such request, a list of similar form and content as of a date
not more than 10 days prior to the time such list is furnished; provided,
however, that so long as the Trustee is the Note Registrar, no such list shall
be required to be furnished.

                                      -64-
<PAGE>

                  SECTION 7.02. Preservation of Information; Communications to
Noteholders.

                  (a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Trustee as provided in
Section 7.01 and the names and addresses of Holders of Notes received by the
Trustee in its capacity as Note Registrar. The Trustee may destroy any list
furnished to it as provided in such Section 7.01 upon receipt of a new list so
furnished.

                  (b) Noteholders may communicate pursuant to TIA s 312(b) with
other Noteholders with respect to their rights under this Indenture or under the
Notes.

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

                  SECTION 7.03. Reports by Issuer.

                  (a) The Issuer shall:

                  (i) file with the Trustee, within 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) which 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 Trustee and the Commission in accordance
         with 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 Trustee a sufficient number of copies (and
         the Trustee shall transmit by mail to all Noteholders described in TIA
         s 313(c)) of such summaries of any information, documents and reports
         required to be filed by the Issuer pursuant to clauses (i) and (ii) of
         this paragraph as may be required 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 end on December 31 of each year. In the event the
         Issuer changes its fiscal year, it shall promptly notify the Trustee.

                                      -65-
<PAGE>

                  SECTION 7.04. Reports by Trustee. If required by TIA s 313(a),
within 60 days after each March 31 beginning with March 31, 2001, the Trustee
shall mail to each Noteholder as required by TIA s 313(c) a brief report dated
as of such date that complies with TIA s 313(a). The Trustee also shall comply
with TIA s 313(b).

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

                  SECTION 7.05. Statements to Noteholders.

                  (a) On each Payment Date, the Trustee shall include with each
distribution to each Noteholder, a statement (which statement shall also be
provided to each Rating Agency), based solely on information in the Servicer's
Certificate delivered on the related Determination Date pursuant to Section 3.9
of the Contribution and Servicing Agreement, in substantially the form attached
hereto as Exhibit B.

                  (b) Note Owners may obtain copies of the statements delivered
by the Trustee pursuant to subsection (a) above upon written request to the
Trustee at its Corporate Trust Office (together with a certification that such
Person is a Note Owner and payment of any expenses associated with the
distribution thereof).

                                  ARTICLE VIII

                   Trust Accounts, Disbursements and Releases
                   ------------------------------------------

                  SECTION 8.01. Collection of Money. Except as otherwise
expressly provided herein, the 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 Trustee pursuant to this Indenture. The Trustee shall apply
all such money received by it as provided in this Indenture. 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 this
Indenture or the Notes, the 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 8.02. Collection Account. On or prior to the Closing
Date, the Trustee shall establish the Collection Account in the name of the
Trustee for the benefit of the Noteholders. The Collection Account shall be an
Eligible Account and initially shall be a segregated trust account

                                      -66-
<PAGE>

established with the Trustee and maintained with the Trustee, into which the
Servicer shall deposit or cause to be deposited all amounts described in
Sections 4.1 and 5.1 of the Contribution and Servicing Agreement.

                  SECTION 8.03. Distributions. No later than 3:00 p.m., St.
Paul, Minnesota time, on each Payment Date, the Trustee shall (based solely on
the information contained in the Servicer's Certificate delivered on the related
Determination Date, upon which the Trustee may conclusively rely) distribute the
following amounts and in the order of priority specified below. Within each
order of priority, amounts shall be deemed withdrawn first from Available
Pledged Revenues plus any Servicer Advances, second (but only as to amounts
described in clauses (ii) and (iv) below) from amounts on deposit in the
Portfolio Expense Account, third (but only as to amounts described in clauses
(iv) through (viii) below) from amounts on deposit in the Residual Account and
fourth, from amounts on deposit in the Reserve Account (but only as to amounts
described in clauses (iv) through (vii) below:

                  (i) first, from the Available Pledged Revenues then on deposit
         in the Collection Account, to the Trustee the Trustee Fee;

                  (ii) second, from the Portfolio Expense Account, to pay the
         Trustee, any expenses or liabilities incurred by the Trustee with
         respect to the hiring of a replacement servicer and the transitioning
         of the trust portfolio;

                  (iii) third, from the Amount Available then remaining on
         deposit in the Collection Account, the Portfolio Expense Account
         Deposit to the Portfolio Expense Account;

                  (iv) fourth, from the Amount Available then remaining on
         deposit in the Collection Account, to the Servicer (if Vendor Services
         or an Affiliate is no longer the Servicer), the Servicing Fee for the
         related Collection Period, and any amounts specified in Section 4.2(c)
         of the Contribution and Servicing Agreement, to the extent the Servicer
         has not reimbursed itself in respect of such amounts pursuant to
         Section 4.4 of the Contribution and Servicing Agreement;

                  (v) fifth, from the Amount Available then remaining on deposit
         in the Collection Account, to reimburse the Servicer for unreimbursed
         Nonrecoverable Servicer Advances made with respect to a prior Payment
         Date;

                  (vi) sixth, from the Amount Available then remaining on
         deposit in the Collection Account, interest on the Notes in the
         following order of priority:

                           (A) to the Class A-1 Noteholders, the Class A-1
                  Interest Distributable Amount, then to the Class A-2
                  Noteholders, the Class A-2 Interest Distributable Amount, then
                  to the Class A-3 Noteholders, the Class A-3 Interest
                  Distributable Amount and then to the Class A-4 Noteholders,
                  the Class A-4 Interest Distributable

                                      -67-
<PAGE>

                  Amount or, if the remaining amount on deposit in the
                  Collection Account is less than the sum of the amounts
                  specified in this clause (A), such remaining amount pro rata
                  to each of such Classes based their respective entitlements to
                  interest pursuant to this clause (A);

                           (B) to the Class B Noteholders, the Class B Interest
                  Distributable Amount;

                           (C) to the Class C Noteholders, the Class C Interest
                  Distributable Amount; and

                           (D) to the Class D Noteholders, the Class D Interest
                  Distributable Amount

                  (vii) seventh, from the Amount Available then remaining on
         deposit in the Collection Account, principal on the Notes in the
         following order of priority:

                           (A) (i) to the Class A-1 Noteholders only, until the
                  Outstanding Principal Amount on the Class A-1 Notes has been
                  reduced to zero, the Class A Principal Payment, then (ii) to
                  the Class A-2 Noteholders, the Class A-3 Noteholders and the
                  Class A-4 Noteholders, sequentially, the Class A Principal
                  Payment, until the Outstanding Principal Amount of each such
                  Class has been reduced to zero;

                           (B) to the Class B Noteholders, the Class B Principal
                  Payment;

                           (C) to the Class C Noteholders, the Class C Principal
                  Payment;

                           (D) to the Class D Noteholders, the Class D Principal
                  Payment

                           (E) to the extent that the Class B Floor exceeds the
                  Class B Target Investor Principal Amount and the Class C Floor
                  exceeds the Class C Target Investor Principal Amount,
                  Additional Principal shall be distributed, sequentially, as an
                  additional principal payment, to the Class A-2 Notes, the
                  Class A-3 Notes, the Class A-4 Notes, the Class B Notes and
                  the Class C Notes, until the Outstanding Principal Amount of
                  each Class has been reduced to zero; and

                           (F) to the extent the Class C Floor exceeds the Class
                  C Target Investor Principal Amount, but the Class B Floor does
                  not exceed the Class B Target Investor Principal Amount,
                  Additional Principal shall be distributed as an additional
                  principal payment on the Class A and Class B Notes, pro rata
                  (and among the Class A Notes, sequentially on the Class A-2,
                  Class A-3 and Class A-4 Notes, in that order), until the
                  Outstanding Principal Amount of each such Class has been
                  reduced to zero;

                                      -68-
<PAGE>

                           (G) to the extent the Class D Floor exceeds the Class
                  D Target Investor Principal Amount, but the Class C Floor does
                  not exceed the Class C Target Investor Principal Amount and
                  the Class B Floor does not exceed the Class B Target Investor
                  Principal Amount, Additional Principal shall be distributed as
                  an additional principal payment on the Class A Notes, Class B
                  Notes and Class C Notes, pro rata (and among the Class A
                  Notes, sequentially on the Class A-2, Class A-3 and Class A-4
                  Notes, in that order), until the Outstanding Principal Amount
                  of each such Class has been reduced to zero;

                  (viii) eighth, from Available Pledged Revenues and amounts (if
         any) on deposit in the Residual Account, to the Reserve Account, an
         amount equal to the excess, if any, of the Required Reserve Amount over
         the Available Reserve Amount;

                  (ix) ninth, from the Available Pledged Revenues then on
         deposit in the Collection Account, to reimburse the Trustee for any
         expenses or liabilities incurred by the Trustee pursuant to the terms
         of this Indenture to the extent not already paid pursuant to clause
         (ii) above;

                  (x) tenth, from the Available Pledged Revenues then on deposit
         in the Collection Account, to the Servicer (if Vendor Services or an
         Affiliate is the Servicer), the Servicing Fee for the related
         Collection Period; and

                  (xi) eleventh, the remainder of Available Pledged Revenues, if
         any, to the Issuer.

                  SECTION 8.04. [Reserved].

                  SECTION 8.05. Servicing Account. On or prior to the Closing
Date, the Trustee shall establish the Servicing Account in the name of the
Trustee for the benefit of the Noteholders and the SPC. The Servicing Account
shall be an Eligible Account. The Servicer shall deposit or cause to be
deposited in the Servicing Account all amounts described in Sections 4.1 and 4.2
of the Contribution and Servicing Agreement, subject to Section 4.4 thereof. The
Servicer shall make transfers from the Servicing Account, and shall be entitled
to make withdrawals from the Servicing Account, as provided in the Contribution
and Servicing Agreement.

                  SECTION 8.06. Residual Account.

                  (a) On or prior to the Closing Date, the Trustee shall
establish the Residual Account in the name of the Trustee for the benefit of the
Noteholders and the Issuer. The Residual Account shall be an Eligible Account.
The Servicer shall deposit or cause to be deposited in the Residual Account all
Residual Realizations pursuant to Section 4.2 of the Collection and Servicing
Agreement.

                                      -69-
<PAGE>

                  (b) If on any Payment Date, the Available Pledged Revenues for
such Payment Date are insufficient to permit on such Payment Date all
distributions required by Section 8.03 (iv) through (viii) (such shortfall, an
"Available Funds Shortfall"), then the Trustee shall transfer from the Residual
Account to the Collection Account, an amount equal to the lesser of (i) the
Available Funds Shortfall and (ii) the amount, if any, on deposit in the
Residual Account.

                  (c) On each Payment Date, unless a Residual Event has occurred
and is continuing, any funds on deposit in the Residual Account after making
required withdrawals, if any, on such Payment Date pursuant to Section 8.06(b)
shall be released to the Issuer.

                  (d) On each Payment Date on which a Residual Event has
occurred or is continuing, any funds on deposit in the Residual Account after
making required withdrawals, if any, on such Payment Date pursuant to Section
8.06(b) shall be retained in the Residual Account.

                  SECTION 8.07. Reserve Account.

                  (a) On or prior to the Closing Date, the Trustee shall
establish the Reserve Account in the name of the Trustee for the benefit of the
Noteholders and the Issuer, and shall deposit the Reserve Account Initial
Deposit in the Reserve Account. The Reserve Account shall be an Eligible
Account.

                  (b) On each Payment Date, the Trustee shall transfer to the
Reserve Account from the Collection Account such amounts as shall be required by
Section 8.03(viii).

                  (c) If on any Payment Date, the Available Pledged Revenues for
such Payment Date, together with amounts to be withdrawn from the Residual
Account pursuant to Section 8.06(b), are insufficient to permit on such Payment
Date all distributions required by Section 8.03 (iv) through (vii) (such
shortfall, a "Remaining Available Funds Shortfall"), then the Trustee shall
transfer from the Reserve Account to the Collection Account, an amount equal to
the lesser of (i) the Remaining Available Funds Shortfall and (ii) the Available
Reserve Amount.

                  (d) If any Payment Date the Available Reserve Amount, after
giving effect to any withdrawals to be made pursuant to Section 8.07(c), exceeds
the Required Reserve Amount, the Trustee shall release such excess to the
Issuer.

                  (e) Upon termination of this Indenture, any balance remaining
in the Reserve Account, after all obligations to the Noteholders hereunder have
been fully satisfied, shall be applied to reimburse the Trustee for any amounts
owing to it arising from the performance of its obligations under this Indenture
and, then, to the Issuer.

                                      -70-
<PAGE>

                  SECTION 8.08. General Provisions Regarding Servicing Account,
Collection Account, Portfolio Expense Account, Residual Account and Reserve
Account.

                  (a) So long as no Default or Event of Default shall have
occurred and be continuing, all amounts held in the Servicing Account, the
Collection Account, the Portfolio Expense Account, the Residual Account and the
Reserve Account shall, to the extent permitted by applicable laws, rules and
regulations, be invested, as directed by the Servicer, in Eligible Investments
that mature not later than one Business Day prior to the Payment Date for the
Collection Period to which such amounts relate. Any such written direction shall
certify that any such investment is authorized by this Section. Investments in
Eligible Investments shall be made in the name of the Trustee on behalf of the
Trust, and such investments shall not be (1) purchased at a price in excess of
the principal amount thereof plus accrued interest thereon, nor (2) sold or
disposed of prior to their maturity at a price less than the principal amount
thereof plus accrued interest thereon. Any investment of funds in the Servicing
Account, the Collection Account, the Portfolio Expense Account, the Residual
Account or the Reserve Account shall be made in Eligible Investments held by a
financial institution in accordance with the following requirements:

                  (i) all Eligible Investments shall be held in an account with
         such financial institution in the name of the Trustee;

                  (ii) with respect to securities held in such account, such
         securities shall be:

                           (A) certificated securities (as such term is used in
                  Minnesota UCC s 8-102(a)(4)), securities deemed to be
                  certificated securities under applicable regulations of the
                  United States government, or uncertificated securities issued
                  by an issuer organized under the laws of the State of New York
                  or the State of Delaware,

                           (B) either (I) in the possession of such institution,
                  (II) in the possession of a "clearing corporation" (as such
                  term is used in Section 8-102(a)(5) of the Minnesota UCC),
                  registered in the name of such clearing corporation or its
                  nominee, not endorsed for collection or surrender or any other
                  purpose not involving transfer, not containing any evidence of
                  a right or interest inconsistent with the Trustee's security
                  interest therein, and held by such clearing corporation in an
                  account of such institution, (III) held in an account of such
                  institution with the Federal Reserve Bank of New York, or (IV)
                  in the case of uncertificated securities, issued in the name
                  of such institution, and

                           (C) identified, by book entry or otherwise, as held
                  for the account of, or pledged to, the Trustee on the records
                  of such institution, and such institution shall have sent the
                  Trustee a confirmation thereof;

                                      -71-
<PAGE>

                  (iii) with respect to repurchase obligations held in such
         account, such repurchase obligations shall be identified by such
         institution, by book entry or otherwise, as held for the account of, or
         pledged to, the Trustee on the records of such institution, and the
         related securities shall be held in accordance with the requirements of
         clause (ii) above; and

                  (iv) with respect to other Eligible Investments other than
         securities and repurchase agreements, such Eligible Investments shall
         be held in a manner acceptable to the Trustee.

Subject to the other provisions hereof, the Trustee shall have sole control over
each such investment and the income thereon, and any certificate or other
instrument evidencing any such investment, if any, shall be delivered directly
to the Trustee or its agent, together with each document of transfer, if any,
necessary to transfer title to such investment to the Trustee in a manner which
complies with this Section. All interest, dividends, gains upon transfer and
other income from, or earnings on, investments of funds in the Collection
Account shall be deposited in the Collection Account and distributed on the next
Payment Date in accordance with Section 8.03. All interest, dividends, gains
upon transfer and other income from, or earnings on, investments of funds in the
Servicing Account shall be retained therein until distributed to the Servicer as
additional servicing compensation in accordance with Section 3.8 of the
Contribution and Servicing Agreement. All interest, dividends, gains upon
transfer or other income from, or earnings on, investments of funds in the
Reserve Account, the Portfolio Expense Account and the Residual Account shall be
added to the balance of such account.

                  (b) Subject to Section 6.01(c), the Trustee shall not in any
way be held liable by reason of any insufficiency in any of the Servicing
Account, the Collection Account, the Portfolio Expense Account, the Residual
Account or the Reserve Account resulting from any loss on any Eligible
Investment included therein except for losses attributable to the Trustee's
failure to make payments on such Eligible Investments issued by the Trustee in
accordance with their terms.

                  (c) The Trustee, in holding all funds in the Servicing
Account, the Collection Account, the Residual Account and the Reserve Account,
and in making distributions as provided in this Agreement, shall act solely on
behalf of and as agent for the Noteholders.

                  (d) Any account which is required to be established as an
Eligible Account pursuant to this Indenture and which ceases to be an Eligible
Account shall within five Business Days (or such longer period, not to exceed 30
days, as to which each Rating Agency may consent) be established by the Trustee
as a new account which shall be an Eligible Account, and any cash and/or any
investments shall be transferred to such new account.

                  SECTION 8.09. Portfolio Expense Account.

                                      -72-
<PAGE>

                  (a) On or prior to the Closing Date, the Trustee shall
establish the Portfolio Expense Account in the name of the Trustee for the
benefit of the Noteholders and the Issuer. The Portfolio Expense Account shall
be an Eligible Account.

                  (b) On or prior to the July 2001 Payment Date, an amount equal
to the excess of 0.75% per annum over the Servicing Fee (the "Portfolio Expense
Account Deposit") shall be deposited in the Portfolio Expense Account.

                  (c) Amounts on deposit in the Portfolio Expense Account will
be eligible on any Payment Date to fund Additional Servicer Compensation and if
a replacement servicer is needed, to cover expenses incurred by the Trustee with
respect to the hiring of a successor servicer and the transitioning of the trust
portfolio.

                  (d) If the Servicing Fee on any Payment Date is less than
$75,000, an amount equal to the excess of $75,000 over the Servicing Fee (such
excess, the "Additional Servicer Compensation") shall be withdrawn from the
Portfolio Expense Account and paid to the Servicer (if Vendor Services or an
affiliate is no longer the Servicer) to the extent cash is available in the
Portfolio Expense Account.

                  (e) Upon termination of this Indenture, any balance remaining
in the Portfolio Expense Account, after all obligations to the Noteholders
hereunder have been fully satisfied, shall be applied to reimburse the Trustee
for any amounts owing to it arising from the performance of its obligations
under this Indenture and, then, to the Issuer.

                                   ARTICLE IX

                             Supplemental Indentures
                             -----------------------

                  SECTION 9.01. Supplemental Indentures Without Consent of
Noteholders.

                  (a) Without the consent of the Holders of any Notes, but with
prior notice to the Rating Agencies, the Issuer and the 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 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 Trustee any property subject to, or
         required to be subjected to, the lien created by this Indenture, or to
         subject to the lien created by this Indenture additional property;

                                      -73-
<PAGE>

                  (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 Holders of the Notes, 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 Trustee;

                  (v) to cure any ambiguity or to correct or supplement any
         provision herein which may be inconsistent with any other provision
         herein;

                  (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;

                  (vii) to modify, eliminate or add to the provisions of this
         Indenture to such extent as shall be necessary to effect 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;

                  (viii) to avoid a reduction, qualification or withdrawal of
         any rating on the Notes; or

                  (ix) upon satisfaction of the Rating Agency Condition, to
         amend the definition of "Residual Event" or of the terms used in such
         definition.

                  The 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 Trustee, when authorized by an Issuer
Order, may, also without the consent of any of the Holders of the Notes, but
upon satisfaction of the Rating Agency Condition, 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 the rights of the Holders of the Notes under this
Indenture; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of
any Noteholder.

                  SECTION 9.02. Supplemental Indentures With Consent of
Noteholders.

                                      -74-
<PAGE>

                  (a) The Issuer and the Trustee, when authorized by an Issuer
Order, also may, with prior notice to the Rating Agencies and the consent of a
Note Majority of each Class affected thereby, 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 the rights of the Holders of the Notes under this
Indenture; provided, however, that, no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Note affected thereby:

                  (i) change the date, timing or method of determination 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 provision of this
         Indenture relating to the application of collections on, or the
         proceeds of the sale of, the 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);

                  (ii) impair the right of the Holder to institute suit pursuant
         to Section 5.08;

                  (iii) reduce the percentage of the Outstanding Amount of the
         Notes, the consent of the Holders of which is required for any such
         supplemental indenture, or the consent of the Holders of which is
         required for any waiver of compliance with certain provisions of this
         Indenture or certain defaults hereunder and their consequences provided
         for in this Indenture;

                  (iv) modify or alter the provisions of the proviso to the
         definition of the term "Outstanding";

                  (v) reduce the percentage of the Outstanding Amount of the
         Notes required to direct the Trustee to direct the Issuer to sell or
         liquidate the Trust Estate pursuant to Section 5.04;

                  (vi) modify any provision of this Section except to increase
         any percentage specified herein or to provide that certain additional
         provisions of this Indenture or the Related Documents cannot be
         modified or waived without the consent of the Holder of each
         Outstanding Note affected thereby;

                  (vii) permit the creation of any lien ranking prior to or on a
         parity with the lien created by this Indenture with respect to any part
         of the Trust Estate or, except as otherwise permitted or contemplated
         herein, terminate the lien created by this Indenture on any property

                                      -75-
<PAGE>

         at any time subject hereto or deprive the Holder of any Note of the
         security provided by the lien created by this Indenture; or

                  (viii) result in a reduction, qualification or withdrawal of
         the rating of any class of Notes.

                  Any supplemental indenture to be entered into in accordance
with this Section shall be deemed to affect all Outstanding Notes other than any
Class of Notes with respect to which an Opinion of Counsel for the Issuer is
addressed and delivered to the Trustee to the effect that the interests of the
Holders of Notes of such Class are not affected in any material respect by the
supplemental indenture.

                  It shall not be necessary for any Act of Noteholders under
this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof. The manner of obtaining such approvals shall be subject to such
reasonable requirements as the Trustee may prescribe.

                  (b) Promptly after the execution by the Issuer and the Trustee
of any supplemental indenture pursuant to this Section, the Trustee shall mail
to the Holders 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 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 9.03. Execution of Supplemental Indentures. In
executing, or permitting the additional trusts created by, any supplemental
indenture permitted by this Article IX or the modifications thereby of the
trusts created by this Indenture, the Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02 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. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Trustee's own rights, duties, liabilities or immunities under this Indenture or
otherwise.

                  SECTION 9.04. Effect of Supplemental Indenture. Upon the
execution of any supplemental indenture pursuant to the provisions hereof, this
Indenture shall be and is 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 Trustee, the Issuer, the Holders of the Notes 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 9.05. Conformity With Trust Indenture Act. Every
amendment of this Indenture and every supplemental indenture executed pursuant
to this Article IX shall conform to the

                                      -76-
<PAGE>

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 9.06. 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 Trustee shall,
bear a notation in form approved by the Trustee as to any matter provided for in
such supplemental indenture. If the Issuer or the Trustee shall so determine,
new notes so modified as to conform, in the opinion of the Trustee and the
Issuer, to any such supplemental indenture may be prepared and executed by the
Issuer and authenticated and delivered by the Trustee in exchange for
Outstanding Notes.

                                    ARTICLE X

                               Redemption of Notes
                               -------------------

                  SECTION 10.01. Redemption. In the event that the SPC pursuant
to Section 5.1 of the Contribution and Servicing Agreement purchases the corpus
of the Trust, the Notes are subject to redemption in whole, but not in part, on
the Payment Date on which such repurchase occurs, for a purchase price equal to
the Redemption Price; provided, however, that the Issuer has available funds
sufficient to pay the Redemption Price. The SPC, the Servicer or the Issuer
shall furnish the Rating Agencies notice of such redemption. If the Notes are to
be redeemed pursuant to this paragraph, the Servicer or the Issuer shall furnish
notice of such election to the Trustee not later than 25 days (or such lesser
number of days as shall be satisfactory to the Trustee) prior to the Redemption
Date, and the Issuer shall deposit, or cause to be deposited, into the
Collection Account the Redemption Price of the Notes to be redeemed, whereupon
all such Notes shall be due and payable on the Redemption Date upon the
furnishing of a notice complying with Section 10.02 to each Holder of the Notes.

                  SECTION 10.02. Form of Redemption Notice.

                  (a) Notice of redemption under Section 10.01(a) shall be given
by the Trustee not less than five days prior to the applicable Redemption Date
by first-class mail, postage prepaid, mailed to each Holder of Notes, as of the
close of business on the Record Date with respect to the Payment Date
immediately preceding the applicable Redemption Date, at such Holder's address
appearing in the Note Register.

                  All notices of redemption shall state:

                  (i) the Redemption Date;

                  (ii) the Redemption Price; and

                                      -77-
<PAGE>

                  (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 3.02).

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

                  (b) Prior notice of redemption under Section 10.01(b) is not
required to be given to Noteholders.

                  SECTION 10.03. Notes Payable on Redemption Date. The Notes or
portions thereof to be redeemed shall, following notice of redemption (if any)
as required by Section 10.02, 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 11.01. Compliance Certificates and Opinions, etc.

                  (a) Upon any application or request by the Issuer to the
Trustee to take any action under any provision of this Indenture, the Issuer
shall furnish to the 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, 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:

                  (i) 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;

                                      -78-
<PAGE>

                  (ii) 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;

                  (iii) 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

                  (iv) 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 property or securities
         with the Trustee that is to be made the basis for the release of any
         property subject to the lien created by this Indenture, the Issuer
         shall, in addition to any obligation imposed in Section 11.01(a) or
         elsewhere in this Indenture, furnish to the Trustee (1) an Officer's
         Certificate certifying or stating the opinion of each person signing
         such certificate as to the fair value (within 90 days of such deposit)
         to the Issuer of the property or securities to be so deposited, (2) 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 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 first
         priority lien and security interest in favor of the Trustee, for the
         benefit of the Trustee, created by this Indenture in the property or
         securities to be so deposited, 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, and (3)
         evidence that the Rating Agency Condition has been satisfied.

                  (ii) Whenever the Issuer is required to furnish to the 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 Trustee an Independent Certificate as
         to the same matters, if the fair value to the Issuer of the property to
         be so deposited and of all other such property 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 10% or more of
         the Outstanding Amount of the Notes, but such a certificate need not be
         furnished with respect to any property 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 of the Outstanding Amount
         of the Notes.

                  (iii) Other than with respect to any release described in
         clause (A) or (B) of Section 11.01(b)(v), whenever any property or
         securities are to be released from the lien created by this Indenture,
         the Issuer shall also furnish to the Trustee an Officer's Certificate
         certifying or stating the opinion of each person signing such
         certificate as to the fair value (within 90 days of such release) of
         the property or securities proposed to be released and stating that in
         the

                                      -79-
<PAGE>

         opinion of such person the proposed release will not impair the
         security created by this Indenture in contravention of the provisions
         hereof.

                  (iv) Whenever the Issuer is required to furnish to the 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 Trustee an Independent Certificate as
         to the same matters if the fair value of the property or securities and
         of all other property or securities (other than property described in
         clauses (A) or (B) of Section 11.01(b)(v)) released from the lien
         created by this Indenture since the commencement of the then current
         fiscal year, as set forth in the certificates required by clause (iii)
         above and this clause (iv), equals 10% or more of the Outstanding
         Amount of the Notes, 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 of the then Outstanding Amount of the Notes.

                  (v) Notwithstanding any other provision of this Section, the
         Issuer may, without compliance with the other provisions of this
         Section, (A) collect, liquidate, sell or otherwise dispose of Leases as
         and to the extent permitted or required by the Related Documents
         (including as provided in Section 3.1 of the Contribution and Servicing
         Agreement) and (B) make cash payments out of the Trust Accounts as and
         to the extent permitted or required by the Related Documents.

                  SECTION 11.02. Form of Documents Delivered to Trustee. 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.

                  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 his 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 SPC or the Issuer, stating that the information with respect
to such factual matters is in the possession of the Servicer, the SPC or the
Issuer, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

                  Where any Person is required to make, give or execute two or
more applications,

                                      -80-
<PAGE>

requests, consents, certificates, statements, opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one
instrument.

                  Whenever in this Indenture, in connection with any application
or certificate or report to the 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 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 11.03. 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 Trustee, and, where it is hereby expressly required, to the
Issuer. Such instrument or instruments (and the action embodied therein 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 6.01) conclusive in
favor of the Trustee and the Issuer, if made in the manner provided in this
Section.

                  (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 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 Holder of any Notes shall bind the Holder
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
Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

                  SECTION 11.04. Notices, etc., to 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
to be made upon, given or furnished to or filed with:

                                      -81-
<PAGE>

                  (a) the Trustee by any Noteholder or by the Issuer shall be
         sufficient for every purpose hereunder if in writing and mailed,
         first-class, postage prepaid, to the Trustee at its Corporate Trust
         Office, or

                  (b) the Issuer by the 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: Conseco
         Finance Lease 2000-1, LLC, 1100 Landmark Towers, 345 St. Peter Street,
         St. Paul, Minnesota 55102-1639, or at any other address previously
         furnished in writing to the Trustee by the Issuer. The Issuer shall
         promptly transmit any notice received by it from the Noteholders to the
         Trustee.

                  Notices required to be given to the Rating Agencies by the
Issuer or the Trustee shall be in writing, personally delivered or mailed by
certified mail, return receipt requested to (i) in the case of Moody's, at the
following address: 99 Church Street, New York, New York 10007 and (ii) in the
case of S&P, at the following address: 25 Broadway, New York, New York 10004; or
as to each of the foregoing, at such other address as shall be designated by
written notice to the other parties.

                  SECTION 11.05. Notices to Noteholders; Waiver. 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. 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.

                  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 Trustee
but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

                  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 of Noteholders when such notice is
required to be given pursuant to any provision of this Indenture, then any
reasonable manner of giving such notice as shall be satisfactory to the Trustee
shall be deemed to be a sufficient giving of such notice.

                  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.

                                      -82-
<PAGE>

                  SECTION 11.06. 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 Holder of a Note
providing for a method of payment, or notice by the Trustee or any Paying Agent
to such Holder, that is different from the methods provided for in this
Indenture for such payments or notices. The Issuer will furnish to the Trustee a
copy of each such agreement and the Trustee will cause payments to be made and
notices to be given in accordance with such agreements.

                  SECTION 11.07. Conflict with Trust Indenture Act. If any
provision hereof limits, qualifies or conflicts with another provision hereof
that is required to be included in this indenture by any of the provisions of
the Trust Indenture Act, such required provision shall control.

                  The provisions of TIA ss 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 11.08. 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 11.09. 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 Trustee in this Indenture shall bind its
successors.

                  SECTION 11.10. Severability. 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 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.

                                      -83-
<PAGE>

                  SECTION 11.13. Governing Law. THIS INDENTURE SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA, WITHOUT
REFERENCE TO ITS CONFLICTS OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

                  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 Trustee or any other counsel reasonably
acceptable to the 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 Trustee under this
Indenture.

                  SECTION 11.16. No Petition. The Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time institute against the SPC or the Issuer, or join
in any institution against the SPC 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 Related Documents.

                  SECTION 11.17. Inspection. The Issuer agrees that, on
reasonable prior notice, it will permit any representative of the 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
Trustee shall and shall cause its representatives to hold in confidence all such
information (including the identity of the Obligors on the Leases) except to the
extent disclosure may be required by s9-208 of the UCC or by any other
applicable law (and all reasonable applications for confidential treatment are
unavailing) and except to the extent that the Trustee may reasonably determine
that such disclosure is consistent with its obligations hereunder.

                                      -84-
<PAGE>

                  IN WITNESS WHEREOF, the Issuer and the 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.

                                          CONSECO FINANCE LEASE 2000-1, LLC
                                          By: GREEN TREE LEASE FINANCE II, INC.

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

                                          WELLS FARGO BANK MINNESOTA, N.A.,
                                          not in its individual capacity but
                                          solely as Trustee,

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

                                      -85-
<PAGE>

                                                                       EXHIBIT A

                          Form of Depository Agreement

                                       A-1
<PAGE>

                                                                       EXHIBIT B

                    Form of Monthly Statements to Noteholders

                                       B-1
<PAGE>

                                                                     EXHIBIT C-1

REGISTERED                                                      $____________ */

No. [ ]

SEE REVERSE FOR CERTAIN DEFINITIONS

                                                             CUSIP NO.__________

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.

                        CONSECO FINANCE LEASE 2000-1, LLC

        [____][____][____][____]% LEASE-BACKED NOTE, CLASS A-[1][2][3][4]

                  Conseco Finance Lease 2000-1, LLC, a limited liability company
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 [
], or registered assigns, the principal sum of [              ] payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $____________ [INSERT INITIAL PRINCIPAL
AMOUNT OF NOTE] and the denominator of which is $____________ [INSERT INITIAL
CLASS A- [1][2][3][4] PRINCIPAL BALANCE] by (ii) the aggregate amount, if any,
payable from the Collection Account in respect of principal on the Class
A-[1][2][3][4] Notes pursuant to Section 8.03(vii)(A) of the Indenture
hereinafter referred to; provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the earliest of the Payment Date
occurring in [_____________][_____________][_____________][_____________] (the
"Class A-[1][2][3][4]

--------------------
*/Denominations of $10,000 and integral multiples of $1 in excess thereof.

                                      C-1-1
<PAGE>

Stated Maturity Date") and the Redemption Date, if any, pursuant to Section
10.01(a) or (b) of the Indenture. The Issuer will pay interest on this Note on
each Payment Date in an amount equal to [one- twelfth of] the product of (i) the
rate per annum shown above [calculated on the basis of actual days elapsed in a
year of 360 days] [calculated on the basis of a 360-day year comprised of twelve
30-day months] and (ii) the principal amount of this Note outstanding on the
preceding Payment Date (after giving effect to all payments of principal made on
the preceding Payment Date) or, with respect to the first Payment Date, the
original principal amount of this Note. 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 Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture, or be valid or
obligatory for any purpose.

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be signed, manually or in facsimile, by its Authorized Officer.

Date:                                     CONSECO FINANCE LEASE 2000-1, LLC

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

                                      C-1-2
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                          WELLS FARGO BANK MINNESOTA, N.A.,
                                          not in its individual capacity but
                                          solely as Trustee,

                                          By
                                            ------------------------------------
                                            Authorized Signatory

                                      C-1-3
<PAGE>

                                [REVERSE OF NOTE]

                  This Note is one of a duly authorized issue of Notes of the
Issuer (herein called the "Notes"), issued in four classes designated as its
_____% Lease-Backed Notes, Class A-1, _____% Lease-Backed Notes, Class A-2,
_____% Lease-Backed Notes, Class A-3, _____% Lease-Backed Notes, Class A-4,
_____% Lease-Backed Notes, Class B, _____% Lease-Backed Notes, Class C and
_____% Lease-Backed Notes, Class D, respectively, all issued under an Indenture
dated as of July 1, 2000 (such indenture, as supplemented or amended, herein
called the "Indenture"), between the Issuer and Wells Fargo Bank Minnesota,
N.A., as trustee (the "Trustee," which term includes any successor Trustee 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 Trustee and the Holders of the Notes.
The Notes are subject to all terms of the Indenture. All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

                  The Notes are and will be secured by the collateral pledged as
security therefor as provided in the Indenture.

                  Principal of the Class A-[1][2][3][4] Notes will be payable on
each Payment Date in an amount described on the face hereof. "Payment Date"
means the twentieth day of each month, or, if any such date is not a Business
Day, the next succeeding Business Day, commencing in August 2000; provided, that
if the Class A-1 Notes have not been paid in full on or before the Payment Date
in ____________ 2001, the Payment Date in ____________ 2001 for the Class A-1
Notes will be _______________, 2001.

                  As described above, the entire unpaid principal amount of this
Note shall be due and payable on the earliest of the Class A-[1][2][3][4] Stated
Maturity Date and the Redemption Date, if any, pursuant to Section 10.01 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 Trustee or a Note Majority have
declared the Notes to be immediately due and payable in the manner provided in
Section 5.02 of the Indenture. All principal payments on the Class
A-[1][2][3][4] Notes shall be made pro rata to the Class A-[1][2][3][4]
Noteholders entitled thereto.

                  Payments of interest on this Note due and payable on each
Payment Date, together with the installment of principal, if any, to the extent
not in full payment of this Note, shall be made by check mailed to the Person
whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of the Depository (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 checks shall be mailed to the
Person

                                      C-1-4
<PAGE>

entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date 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) affected by any payments made on any
Payment Date shall be binding upon all future Holders 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 Payment Date, then the Trustee, in the name
of and on behalf of the Issuer, will notify the Person who was the Registered
Holder hereof as of the Record Date with respect to the Payment Date immediately
preceding such Redemption Date by notice mailed within five days of such
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Trustee's principal Corporate
Trust Office or at the office of the Trustee's agent appointed for such purposes
located in St. Paul, Minnesota.

                  The Issuer shall pay interest on overdue installments of
interest at the Class A- [1][2][3][4] Interest Rate to the extent lawful.

                  As provided in the Indenture, the Notes may be redeemed
pursuant to Section 10.01(a) of the Indenture, in whole, but not in part, at the
option of the SPC on any Payment Date on or after the date on which the sum of
the Aggregate Principal Amount of the Notes is less than or equal to 20% of the
Initial Pool Principal Balance.

                  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 Trustee duly executed by, the Holder hereof or his 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 a "signature guarantee
program" determined by the Note Registrar in accordance with the Exchange Act,
and such other documents as the Trustee may require, and thereupon one or more
new Notes of 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 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 or the Trustee on the Notes or under the Indenture or
any certificate or other writing delivered in connection therewith, against (i)
the Trustee 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 Trustee in its individual capacity, any holder of a

                                      C-1-5
<PAGE>

beneficial interest in the Issuer or the Trustee or of any successor or assign
of the Trustee 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 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
that by accepting the benefits of the Indenture and such Note that such
Noteholder or Note Owner will not at any time institute against the SPC or the
Issuer, or join in any institution against the SPC or the Issuer, 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 Related
Documents.

                  The SPC has structured the Indenture and the Notes with the
intention that the Notes will qualify under applicable federal, state, local and
foreign tax law as indebtedness of the SPC secured by the Leases. The SPC, the
Servicer, each Noteholder and each Note Owner agree to treat and to take no
action inconsistent with the treatment of the Notes as such indebtedness for
purposes of federal, state, local and foreign income or franchise taxes and any
other tax imposed on or measured by income. Each Noteholder and each Note Owner,
by acceptance of its Note or beneficial interest therein, agrees to be bound by
the provisions of this paragraph. Each Noteholder agrees that it will cause any
Note Owner acquiring an interest in a Note through it to comply with the
Indenture as to treatment as indebtedness under applicable tax law, as described
in this paragraph.

                  Prior to the due presentment for registration of transfer of
this Note, the Issuer, the Trustee and any agent of the Issuer or the 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 neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

                  The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of each class of Notes at the
time Outstanding. The Indenture also contains provisions permitting the Holders
of Notes representing specified percentages of the Outstanding Amount of each
class of Notes, on behalf of the Holders of all the Notes, 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
Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
and binding upon such Holders and upon all future Holders 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

                                      C-1-6
<PAGE>

Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

                  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 Trustee and
the Holder of Notes 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 construed in accordance
with the laws of the State of Minnesota, without reference to its conflict of
law provisions, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

                  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 Related Documents, neither any owner of a beneficiary
interest in the Issuer, nor any of its 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 of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture. The Holder of this Note by the acceptance hereof agrees that except
as expressly provided in the Related Documents, in the case of an Event of
Default under the Indenture, the Holder 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.

                                      C-1-7
<PAGE>

                                   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:

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

**    NOTE: 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 whatsoever.

                                      C-1-8
<PAGE>

                                                                     EXHIBIT C-2

REGISTERED                                                     $_____________ */

No. [  ]

SEE REVERSE FOR CERTAIN DEFINITIONS

                                                          CUSIP NO._____________

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 IS 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, AS
DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

                        CONSECO FINANCE LEASE 2000-1, LLC

                       ______% LEASE-BACKED NOTE, CLASS B

                  Conseco Finance Lease 2000-1, LLC, a limited liability company
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 [          ],
or registered assigns, the principal sum of [            ] payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $____________ [INSERT INITIAL PRINCIPAL
AMOUNT OF NOTE] and the denominator of which is $____________ by (ii) the
aggregate amount, if any, payable from the Collection Account in respect of
principal on the Class B Notes pursuant to Section -------- */Denominations of
$10,000 and integral multiples of $1 in excess thereof.

                                      C-2-1
<PAGE>

8.03(vii)(B) of the Indenture hereinafter referred to; provided, however, that
the entire unpaid principal amount of this Note shall be due and payable on the
earliest of the Payment Date occurring in [August 2005] (the "Class B Stated
Maturity Date") and the Redemption Date, if any, pursuant to Section 10.01(a) or
(b) of the Indenture. The Issuer will pay interest on this Note on each Payment
Date in an amount equal to one-twelfth of the product of (i) the rate per annum
shown above and (ii) the principal amount of this Note outstanding on the
preceding Payment Date (after giving effect to all payments of principal made on
the preceding Payment Date) or, with respect to the first Payment Date, the
original principal amount of this Note. 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 Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture, or be valid or
obligatory for any purpose.

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be signed, manually or in facsimile, by its Authorized Officer.

Date:                                     CONSECO FINANCE LEASE 2000-1, LLC

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

                                      C-2-2
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                          WELLS FARGO BANK MINNESOTA, N.A.,
                                          not in its individual capacity but
                                          solely as Trustee,

                                          By
                                            ------------------------------------
                                            Authorized Signatory

                                      C-2-3
<PAGE>

                                [REVERSE OF NOTE]

                  This Note is one of a duly authorized issue of Notes of the
Issuer (herein called the "Notes"), issued in four classes designated as its
_____% Lease-Backed Notes, Class A-1, _____% Lease-Backed Notes, Class A-2,
_____% Lease-Backed Notes, Class A-3, _____%% Lease- Backed Notes, Class A-4,
_____% Lease-Backed Notes, Class B, _____% Lease-Backed Notes, Class C and
_____% Lease-Backed Notes, Class D, respectively, all issued under an Indenture
dated as of July 1, 2000 (such indenture, as supplemented or amended, herein
called the "Indenture"), between the Issuer and Wells Fargo Bank Minnesota,
N.A., as trustee (the "Trustee," which term includes any successor Trustee 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 Trustee and the Holders of the Notes.
The Notes are subject to all terms of the Indenture. All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

                  The Notes are and will be secured by the collateral pledged as
security therefor as provided in the Indenture.

                  Principal of the Class B Notes will be payable on each Payment
Date in an amount described on the face hereof. "Payment Date" means the
twentieth day of each month, or, if any such date is not a Business Day, the
next succeeding Business Day, commencing in August 2000.

                  As described above, the entire unpaid principal amount of this
Note shall be due and payable on the earliest of the Class B Stated Maturity
Date and the Redemption Date, if any, pursuant to Section 10.01 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 Trustee or a Note Majority have
declared the Notes to be immediately due and payable in the manner provided in
Section 5.02 of the Indenture. All principal payments on the Class B Notes shall
be made pro rata to the Class B Noteholders entitled thereto.

                  Payments of interest on this Note due and payable on each
Payment Date, together with the installment of principal, if any, to the extent
not in full payment of this Note, shall be made by check mailed to the Person
whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of the Depository (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 checks shall be mailed to the
Person entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date 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) affected by any payments

                                      C-2-4
<PAGE>

made on any Payment Date shall be binding upon all future Holders 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 Payment Date, then the
Trustee, in the name of and on behalf of the Issuer, will notify the Person who
was the Registered Holder hereof as of the Record Date with respect to the
Payment Date immediately preceding such Redemption Date by notice mailed within
five days of such Redemption Date and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Trustee's
principal Corporate Trust Office or at the office of the Trustee's agent
appointed for such purposes located in St. Paul, Minnesota.

                  The Issuer shall pay interest on overdue installments of
interest at the Class B Interest Rate to the extent lawful.

                  As provided in the Indenture, the Notes may be redeemed
pursuant to Section 10.01(a) of the Indenture, in whole, but not in part, at the
option of the SPC on any Payment Date on or after the date on which the sum of
the Aggregate Principal Amount of the Notes is less than or equal to 20% of the
Initial Pool Principal Balance.

                  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 Trustee duly executed by, the Holder hereof or his 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 a "signature guarantee
program" determined by the Note Registrar in accordance with the Exchange Act,
and such other documents as the Trustee may require, and thereupon one or more
new Notes of 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 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 or the Trustee on the Notes or under the Indenture or
any certificate or other writing delivered in connection therewith, against (i)
the Trustee 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 Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer or the Trustee or of any successor or assign
of the Trustee 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

                                      C-2-5
<PAGE>

unpaid consideration 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
that by accepting the benefits of the Indenture and such Note that such
Noteholder or Note Owner will not at any time institute against the SPC or the
Issuer, or join in any institution against the SPC or the Issuer, 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 Related
Documents.

                  The SPC has structured the Indenture and the Notes with the
intention that the Notes will qualify under applicable federal, state, local and
foreign tax law as indebtedness of the SPC secured by the Leases. The SPC, the
Servicer, each Noteholder and each Note Owner agree to treat and to take no
action inconsistent with the treatment of the Notes as such indebtedness for
purposes of federal, state, local and foreign income or franchise taxes and any
other tax imposed on or measured by income. Each Noteholder and each Note Owner,
by acceptance of its Note or beneficial interest therein, agrees to be bound by
the provisions of this paragraph. Each Noteholder agrees that it will cause any
Note Owner acquiring an interest in a Note through it to comply with the
Indenture as to treatment as indebtedness under applicable tax law, as described
in this paragraph.

                  Prior to the due presentment for registration of transfer of
this Note, the Issuer, the Trustee and any agent of the Issuer or the 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 neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

                  The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of each class of Notes at the
time Outstanding. The Indenture also contains provisions permitting the Holders
of Notes representing specified percentages of the Outstanding Amount of each
class of Notes, on behalf of the Holders of all the Notes, 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
Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
and binding upon such Holders and upon all future Holders 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 Indenture also permits the Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders
of the Notes issued thereunder.

                                      C-2-6
<PAGE>

                  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 Trustee and
the Holder of Notes 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 construed in accordance
with the laws of the State of Minnesota, without reference to its conflict of
law provisions, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

                  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 Related Documents, neither any owner of a beneficiary
interest in the Issuer, nor any of its 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 of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture. The Holder of this Note by the acceptance hereof agrees that except
as expressly provided in the Related Documents, in the case of an Event of
Default under the Indenture, the Holder 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.

                                      C-2-7
<PAGE>

                                   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:

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

**    NOTE: 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 whatsoever.

                                      C-2-8
<PAGE>

                                                                     EXHIBIT C-3

REGISTERED                                                      $___________ **/

No. [ ]

SEE REVERSE FOR CERTAIN DEFINITIONS

                                                             CUSIP NO.__________

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 IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1
NOTES, THE CLASS A-2 NOTES, THE CLASS A-3 NOTES, THE CLASS A-4 NOTES AND THE
CLASS B NOTES, AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

                        CONSECO FINANCE LEASE 2000-1, LLC

                        _____% LEASE-BACKED NOTE, CLASS C

                  Conseco Finance Lease 2000-1, LLC, a limited liability company
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 [          ],
or registered assigns, the principal sum of [          ] payable on each Payment
Date in an amount equal to the result obtained by multiplying (i) a fraction the
numerator of which is $___________ [INSERT INITIAL PRINCIPAL AMOUNT OF NOTE] and
the denominator of which is $___________ by (ii) the aggregate amount, if any,

---------------------
 **/Denominations of $10,000 and integral multiples of $1 in excess thereof.

                                      C-3-1
<PAGE>

payable from the Collection Account in respect of principal on the Class C Notes
pursuant to Section 8.03(vii)(C) of the Indenture hereinafter referred to;
provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the earliest of the Payment Date occurring in [August 2005]
(the "Class C Stated Maturity Date") and the Redemption Date, if any, pursuant
to Section 10.01(a) or (b) of the Indenture. The Issuer will pay interest on
this Note on each Payment Date in an amount equal to one-twelfth of the product
of (i) the rate per annum shown above and (ii) the principal amount of this Note
outstanding on the preceding Payment Date (after giving effect to all payments
of principal made on the preceding Payment Date) or, with respect to the first
Payment Date, the original principal amount of this Note. 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 Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture, or be valid or
obligatory for any purpose.

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be signed, manually or in facsimile, by its Authorized Officer.

Date:                                     CONSECO FINANCE  LEASE 2000-1, LLC

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

                                      C-3-2
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                          WELLS FARGO BANK MINNESOTA, N.A.,
                                          not in its individual capacity but
                                          solely as Trustee,

                                          By
                                             -----------------------------------
                                             Authorized Signatory

                                      C-3-3
<PAGE>

                                [REVERSE OF NOTE]

                  This Note is one of a duly authorized issue of Notes of the
Issuer (herein called the "Notes"), issued in four classes designated as its
_____% Lease-Backed Notes, Class A-1, _____% Lease-Backed Notes, Class A-2,
_____% Lease-Backed Notes, Class A-3, _____% Lease-Backed Notes, Class A-4,
_____% Lease-Backed Notes, Class B, _____% Lease-Backed Notes, Class C and
_____% Lease-Backed Notes, Class D, respectively, all issued under an Indenture
dated as of July 1, 2000 (such indenture, as supplemented or amended, herein
called the "Indenture"), between the Issuer and Wells Fargo Bank Minnesota,
N.A., as trustee (the "Trustee," which term includes any successor Trustee 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 Trustee and the Holders of the Notes.
The Notes are subject to all terms of the Indenture. All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

                  The Notes are and will be secured by the collateral pledged as
security therefor as provided in the Indenture.

                  Principal of the Class C Notes will be payable on each Payment
Date in an amount described on the face hereof. "Payment Date" means the
twentieth day of each month, or, if any such date is not a Business Day, the
next succeeding Business Day, commencing in August 2000.

                  As described above, the entire unpaid principal amount of this
Note shall be due and payable on the earliest of the Class C Stated Maturity
Date and the Redemption Date, if any, pursuant to Section 10.01 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 Trustee or a Note Majority have
declared the Notes to be immediately due and payable in the manner provided in
Section 5.02 of the Indenture. All principal payments on the Class C Notes shall
be made pro rata to the Class C Noteholders entitled thereto.

                  Payments of interest on this Note due and payable on each
Payment Date, together with the installment of principal, if any, to the extent
not in full payment of this Note, shall be made by check mailed to the Person
whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of the Depository (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 checks shall be mailed to the
Person entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date 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) affected by any payments made on any
Payment Date shall be binding upon all future Holders of this Note and of any
Note issued

                                      C-3-4
<PAGE>

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 Payment Date, then the Trustee, in the name
of and on behalf of the Issuer, will notify the Person who was the Registered
Holder hereof as of the Record Date with respect to the Payment Date immediately
preceding such Redemption Date by notice mailed within five days of such
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Trustee's principal Corporate
Trust Office or at the office of the Trustee's agent appointed for such purposes
located in St. Paul, Minnesota.

                  The Issuer shall pay interest on overdue installments of
interest at the Class C Interest Rate to the extent lawful.

                  As provided in the Indenture, the Notes may be redeemed
pursuant to Section 10.01(a) of the Indenture, in whole, but not in part, at the
option of the SPC on any Payment Date on or after the date on which the sum of
the Aggregate Principal Amount of the Notes is less than or equal to 20% of the
Initial Pool Principal Balance.

                  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 Trustee duly executed by, the Holder hereof or his 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 a "signature guarantee
program" determined by the Note Registrar in accordance with the Exchange Act,
and such other documents as the Trustee may require, and thereupon one or more
new Notes of 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 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 or the Trustee on the Notes or under the Indenture or
any certificate or other writing delivered in connection therewith, against (i)
the Trustee 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 Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer or the Trustee or of any successor or assign
of the Trustee 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 or failure to pay any
installment or call owing

                                      C-3-5
<PAGE>

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
that by accepting the benefits of the Indenture and such Note that such
Noteholder or Note Owner will not at any time institute against the SPC or the
Issuer, or join in any institution against the SPC or the Issuer, 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 Related
Documents.

                  The SPC has structured the Indenture and the Notes with the
intention that the Notes will qualify under applicable federal, state, local and
foreign tax law as indebtedness of the SPC secured by the Leases. The SPC, the
Servicer, each Noteholder and each Note Owner agree to treat and to take no
action inconsistent with the treatment of the Notes as such indebtedness for
purposes of federal, state, local and foreign income or franchise taxes and any
other tax imposed on or measured by income. Each Noteholder and each Note Owner,
by acceptance of its Note or beneficial interest therein, agrees to be bound by
the provisions of this paragraph. Each Noteholder agrees that it will cause any
Note Owner acquiring an interest in a Note through it to comply with the
Indenture as to treatment as indebtedness under applicable tax law, as described
in this paragraph.

                  Prior to the due presentment for registration of transfer of
this Note, the Issuer, the Trustee and any agent of the Issuer or the 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 neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

                  The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of each class of Notes at the
time Outstanding. The Indenture also contains provisions permitting the Holders
of Notes representing specified percentages of the Outstanding Amount of each
class of Notes, on behalf of the Holders of all the Notes, 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
Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
and binding upon such Holders and upon all future Holders 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 Indenture also permits the Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders
of the Notes issued thereunder.

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

                                      C-3-6
<PAGE>

Indenture.

                  The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Trustee and
the Holder of Notes 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 construed in accordance
with the laws of the State of Minnesota, without reference to its conflict of
law provisions, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

                  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 Related Documents, neither any owner of a beneficiary
interest in the Issuer, nor any of its 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 of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture. The Holder of this Note by the acceptance hereof agrees that except
as expressly provided in the Related Documents, in the case of an Event of
Default under the Indenture, the Holder 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.

                                      C-3-7
<PAGE>

                                   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:

-------------------
**    NOTE: 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 whatsoever.

                                      C-3-8
<PAGE>

                                                                     EXHIBIT C-4

REGISTERED                                                      $ __________***/

No. [ ]

SEE REVERSE FOR CERTAIN DEFINITIONS

                                                             CUSIP NO.__________

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 IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1
NOTES, THE CLASS A-2 NOTES, THE CLASS A-3 NOTES, THE CLASS A-4 NOTES, THE CLASS
B NOTES AND THE CLASS C NOTES AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

                        CONSECO FINANCE LEASE 2000-1, LLC

                        _____% LEASE-BACKED NOTE, CLASS D

                  Conseco Finance Lease 2000-1, LLC, a limited liability company
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 [          ],
or registered assigns, the principal sum of [          ] payable on each Payment
Date in an amount equal to the result obtained by multiplying (i) a fraction the
numerator of which is $___________ [INSERT INITIAL PRINCIPAL AMOUNT

--------------------
***/Denominations of $10,000 and integral multiples of $1 in excess thereof.

                                      C-4-1
<PAGE>

OF NOTE] and the denominator of which is $___________ by (ii) the aggregate
amount, if any, payable from the Collection Account in respect of principal on
the Class C Notes pursuant to Section 8.03(vii)(D) of the Indenture hereinafter
referred to; provided, however, that the entire unpaid principal amount of this
Note shall be due and payable on the earliest of the Payment Date occurring in
[July 2008] (the "Class D Stated Maturity Date") and the Redemption Date, if
any, pursuant to Section 10.01(a) or (b) of the Indenture. The Issuer will pay
interest on this Note on each Payment Date in an amount equal to one-twelfth of
the product of (i) the rate per annum shown above and (ii) the principal amount
of this Note outstanding on the preceding Payment Date (after giving effect to
all payments of principal made on the preceding Payment Date) or, with respect
to the first Payment Date, the original principal amount of this Note. 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 Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture, or be valid or
obligatory for any purpose.

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be signed, manually or in facsimile, by its Authorized Officer.

Date:                                     CONSECO FINANCE  LEASE 2000-1, LLC

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

                                      C-4-2
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                          WELLS FARGO BANK MINNESOTA, N.A.,
                                          not in its individual capacity but
                                          solely as Trustee,

                                          By
                                             -----------------------------------
                                             Authorized Signatory

                                      C-4-3
<PAGE>

                                [REVERSE OF NOTE]

                  This Note is one of a duly authorized issue of Notes of the
Issuer (herein called the "Notes"), issued in four classes designated as its
_____% Lease-Backed Notes, Class A-1, _____% Lease-Backed Notes, Class A-2,
_____% Lease-Backed Notes, Class A-3, _____% Lease-Backed Notes, Class A-4,
_____% Lease-Backed Notes, Class B, ____% Lease-Backed Notes, Class C, and ____%
Lease-Backed Notes, Class D, respectively, all issued under an Indenture dated
as of July 1, 2000 (such indenture, as supplemented or amended, herein called
the "Indenture"), between the Issuer and U.S. Bank Trust National Association,
as trustee (the "Trustee," which term includes any successor Trustee 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 Trustee and the Holders of the Notes. The Notes
are subject to all terms of the Indenture. All terms used in this Note that are
defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

                  The Notes are and will be secured by the collateral pledged as
security therefor as provided in the Indenture.

                  Principal of the Class D Notes will be payable on each Payment
Date in an amount described on the face hereof. "Payment Date" means the
twentieth day of each month, or, if any such date is not a Business Day, the
next succeeding Business Day, commencing in August 2000.

                  As described above, the entire unpaid principal amount of this
Note shall be due and payable on the earliest of the Class D Stated Maturity
Date and the Redemption Date, if any, pursuant to Section 10.01 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 Trustee or a Note Majority have
declared the Notes to be immediately due and payable in the manner provided in
Section 5.02 of the Indenture. All principal payments on the Class D Notes shall
be made pro rata to the Class D Noteholders entitled thereto.

                  Payments of interest on this Note due and payable on each
Payment Date, together with the installment of principal, if any, to the extent
not in full payment of this Note, shall be made by check mailed to the Person
whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of the Depository (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 checks shall be mailed to the
Person entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date 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) affected by any payments made on any
Payment Date shall be binding upon all future Holders of this Note and of any
Note issued

                                      C-4-4
<PAGE>

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 Payment Date, then the Trustee, in the name
of and on behalf of the Issuer, will notify the Person who was the Registered
Holder hereof as of the Record Date with respect to the Payment Date immediately
preceding such Redemption Date by notice mailed within five days of such
Redemption Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Trustee's principal Corporate
Trust Office or at the office of the Trustee's agent appointed for such purposes
located in St. Paul, Minnesota.

                  The Issuer shall pay interest on overdue installments of
interest at the Class C Interest Rate to the extent lawful.

                  As provided in the Indenture, the Notes may be redeemed
pursuant to Section 10.01(a) of the Indenture, in whole, but not in part, at the
option of the SPC on any Payment Date on or after the date on which the sum of
the Aggregate Principal Amount of the Notes is less than or equal to 20% of the
Initial Pool Principal Balance.

                  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 Trustee duly executed by, the Holder hereof or his 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 a "signature guarantee
program" determined by the Note Registrar in accordance with the Exchange Act,
and such other documents as the Trustee may require, and thereupon one or more
new Notes of 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 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 or the Trustee on the Notes or under the Indenture or
any certificate or other writing delivered in connection therewith, against (i)
the Trustee 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 Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer or the Trustee or of any successor or assign
of the Trustee 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 or failure to pay any
installment or call owing

                                      C-4-5
<PAGE>

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
that by accepting the benefits of the Indenture and such Note that such
Noteholder or Note Owner will not at any time institute against the SPC or the
Issuer, or join in any institution against the SPC or the Issuer, 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 Related
Documents.

                  The SPC has structured the Indenture and the Notes with the
intention that the Notes will qualify under applicable federal, state, local and
foreign tax law as indebtedness of the SPC secured by the Leases. The SPC, the
Servicer, each Noteholder and each Note Owner agree to treat and to take no
action inconsistent with the treatment of the Notes as such indebtedness for
purposes of federal, state, local and foreign income or franchise taxes and any
other tax imposed on or measured by income. Each Noteholder and each Note Owner,
by acceptance of its Note or beneficial interest therein, agrees to be bound by
the provisions of this paragraph. Each Noteholder agrees that it will cause any
Note Owner acquiring an interest in a Note through it to comply with the
Indenture as to treatment as indebtedness under applicable tax law, as described
in this paragraph.

                  Prior to the due presentment for registration of transfer of
this Note, the Issuer, the Trustee and any agent of the Issuer or the 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 neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

                  The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of each class of Notes at the
time Outstanding. The Indenture also contains provisions permitting the Holders
of Notes representing specified percentages of the Outstanding Amount of each
class of Notes, on behalf of the Holders of all the Notes, 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
Holder of this Note (or any one or more Predecessor Notes) shall be conclusive
and binding upon such Holders and upon all future Holders 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 Indenture also permits the Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders
of the Notes issued thereunder.

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

                                      C-4-6
<PAGE>

Indenture.

                  The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Trustee and
the Holder of Notes 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 construed in accordance
with the laws of the State of Minnesota, without reference to its conflict of
law provisions, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

                  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 Related Documents, neither any owner of a beneficiary
interest in the Issuer, nor any of its 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 of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture. The Holder of this Note by the acceptance hereof agrees that except
as expressly provided in the Related Documents, in the case of an Event of
Default under the Indenture, the Holder 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.

                                      C-4-7
<PAGE>

                                   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:

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

**    NOTE: 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 whatsoever.

                                      C-4-8

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