Document:

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                                                                    Exhibit 10.9

                             EMPLOYMENT AGREEMENT

        Agreement, dated as of March 1, 2000, between ZD Events Inc., a Delaware
corporation (the "Employer" or "ZD Events"), and Ned S. Goldstein (the
"Executive").

        WHEREAS, ZD Events is a wholly owned subsidiary of Ziff-Davis Inc.
("Ziff-Davis") engaged in the business of conducting trade shows, conferences
and other events (the "Events Business"); and

        WHEREAS, Ziff-Davis intends to (a) contribute the stock of all of its
subsidiaries engaged in the Events Business, including ZD Events, and any other
assets directly used in the Events Business, to a newly formed Delaware
corporation ("Newco"), (b) cause ZD Events to assign to Newco, and cause Newco
to assume, all of ZD Events' rights and obligations under this Agreement, after
which Newco will be considered to be the Employer hereunder (such assignment and
assumption, the "Newco Assumption"), (c) cause ZD Events to guarantee the
performance of this Agreement by Newco until the Spin Off (described below) is
effectuated, and (d) distribute all of the stock of Newco to the holders of
Ziff-Davis Inc. -- ZD Common Stock ("ZD Common Stock") as a dividend (the "Spin
Off"); and
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        WHEREAS, ZD Events wishes to have the Executive immediately assume his
senior management position with the Events Business while it is still owned by
Ziff-Davis and thereafter following the Spin Off; and

        WHEREAS, the Board of Directors of ZD Events has determined that it is
in the best interests of ZD Events to enter into this Agreement.

        THEREFORE, in consideration of the premises and the respective covenants
and agreements herein contained, the parties hereto agree as follows:

        1. Employment
        Until the Newco Assumption is finalized, Executive shall be employed by
ZD Events in the capacity of Executive Vice President and General Counsel. Upon
the Newco Assumption, the Executive shall be employed as the Executive Vice
President and General Counsel of Newco and shall be in charge of the legal
affairs, business affairs and government affairs of Newco. Executive shall
report directly to the Chairman and Chief Executive Officer of Newco. Subject to
the authority of the Board of Directors and Chief Executive Officer of Employer,
Executive shall have all of the powers and duties incident to the office of
Executive Vice President and General Counsel; provided, however, no executive or
other employee of Newco shall hold a position, stature, title or powers
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higher or greater than or equal to those of Executive with respect to the legal
affairs, business affairs or government affairs of Newco. The Executive will
devote his full business time, and use his best efforts, to serve the Employer
in the described capacities, on the terms and conditions set forth herein.
Executive may continue his memberships on the boards of directors of the
corporations on which he currently serves, as well as on additional boards with
the consent of the Chief Executive Officer of Newco, which shall not be
unreasonably withheld.

        2.      Term
        Unless sooner terminated as contemplated herein, the term of employment
of the Executive under this Agreement will commence on the date hereof and end
on February 28, 2005. Each consecutive 12 month period during the term hereof
commencing on March 1 and ending on the last day of the next February, shall
constitute a contract year.

        3.      Place of Performance
        The Executive's employment will be based in the Los Angeles area.

        4.      Compensation and Related Matters
        (a)     Salary. During the term of the Executive's employment, the
Employer will pay to the Executive an annual base salary of not less than
(subject to increase by action of the Board or the
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Compensation Committee, as applicable) the amounts set forth herein below,
payable no less frequently than monthly: Contract years 1-3, $525,000; contract
years 4-5, $550,000.

        (b)     Performance Bonus. During each contract year of the term hereof,
                Employer shall pay Executive an annual performance bonus as
                determined by the Board of Directors of Employer, or it
                Compensation Committee, in its sole discretion, the
                determination of which shall be based upon such standards,
                guidelines, and factual circumstances as the Board of Directors
                or its Compensation Committee deems relevant, including, without
                limitation, the operating results of Employer during such
                contract year, the importance of the efforts of Executive in
                achieving those results and the achievement by the Employer
                and/or Executive of performance goals previously established by
                the Board of Directors for such contract year: provided,
                however, that in no event shall the bonus for any contract year
                be less
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                than $125,000 for contract year 1 and $150,000 for contract
                years 2-5.
        (c)     INTENTIONALLY OMITTED.
        (d)     INTENTIONALLY OMITTED.
        (e)     Stock Options. Effective as of the date of the Spin Off, Newco
will grant options to the Executive to acquire shares of its common stock in
accordance with an Incentive Compensation Plan to be adopted by the Board. Such
Plan will include all provisions typically found in an incentive plan for senior
executives of a public company including SEC registration at the expense of
Newco.

                   (i)         Number of Shares. The number of shares of the
                common stock of Newco which may be acquired by the Executive
                upon exercise of the options shall be 700,000.

                   (ii)        Strike Price. The exercise price for one-half of
                the shares subject to option shall be equal to (x)$640 million
                plus the amount of any equity infusion described in paragraph
                (i) above less the consolidated debt of Newco (as set forth in
                the third WHEREAS clause) as of the date of the Spin Off divided
                by (y) the number of issued and outstanding shares of stock of
                Newco as of the date of the Spin Off. For
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                example, if the consolidated debt is $395 million and 100
                million shares are outstanding, the option price will be $2.45
                per share. The exercise price for the other half of the shares
                subject to option shall be the exercise price determined
                pursuant to the preceding sentence times 5.50 divided by 2.45.

                   (iii) Vesting. Vesting occurs if Executive is employed by the
                Employer on the relevant date. No option may be exercised until
                vested in accordance with the following schedule or as otherwise
                provided in this Agreement:

                       Portion of               ... Which Vest
                         Options                       on:
                                1/16            May 31, 2000
                                1/16            August 31, 2000
                                1/16            November 30, 2000
                                1/16            February 28, 2001
                                1/48            at the end of each
                                                month beginning
                                                March 31, 2001

It is recognized that some options may be fully vested when granted if the Spin
Off does not occur before May 31, 2000. Notwithstanding the terms of the
Incentive Compensation Plan, the options will fully vest immediately and become
immediately exercisable upon a Change of Control, which means:

                (A) individuals who, on the date of the Spin Off, are members of
        the Board (the
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        "Incumbent Directors") cease for any reason following the date of the
        Spin Off, to constitute at least a majority of the Board; provided, that
        any new director who is approved by a vote of at least a majority of the
        Incumbent Directors shall be treated as an Incumbent Director;

                (B) the stockholders of Newco approve a merger, consolidation,
        statutory share exchange or any manner of corporate transaction in which
        Newco is not the surviving corporation or entity or more than 50% of
        the value of Newco is affected by a merger or acquisition; provided,
        however, such approval shall not be a Change in Control if immediately
        following such approval Fredric D. Rosen continues to serve as the
        highest ranking officer of the surviving entity; or

                (C) the stockholders of Newco approve a plan of complete
        liquidation or dissolution or a sale of all or substantially all of the
        assets.

                   (iv)      Expiration. Options shall expire at
the earliest of:

                (A)     The 10th anniversary of the Spin Off; or
                (B)     The 3rd anniversary of termination of employment for any
                        reason except Cause (as defined below); or
                (C)     Immediately upon termination of employment for Cause;
                        or
                (D)     Under conditions specified in Section 6(d); or
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                (E)     Six (6) months following a voluntary termination of this
                        Agreement by Employee, other than for Good Reason, death
                        or Disability.

        (v) Exercise. The option price of each share as to which a stock option
is exercised shall be paid in full at the time of such exercise in cash, by
tender of shares of common stock owned by the Executive valued at fair market
value as of the date of exercise (subject to such guidelines as the Compensation
Committee of the Board may establish), by a "sale to cover" broker transaction
or other cashless exercise method permitted under Regulation T of the Federal
Reserve Board, or by a combination of cash, shares of common stock and other
consideration as the Compensation Committee deems appropriate.

        In the event of a Change of Control, the Executive may elect to receive
in cancellation of his outstanding and unexercised stock options, a cash payment
in an amount equal to the difference between the option price of such stock
options and (A) in the event the Change of Control is the result of a tender
offer or exchange offer for the common stock, the final offer price per share
paid for the common stock multiplied by the number of shares of common stock
covered by such stock options, or (B) in the event the
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Change of Control is the result of any other occurrence, the aggregate value of
the Common Stock covered by such stock options, as reasonably determined by the
Compensation Committee at such time.

        (vi) Adjustments of and Changes in Stock. In the event of any change in
the outstanding shares of common stock by reason of any stock dividend or split,
recapitalization, merger, consolidation, spinoff, combination or exchange of
shares or other corporate change, or any distributions (including stock or stock
rights distributions) to common shareholders other than regular cash dividends,
the Compensation Committee shall make a substitution or appropriate adjustment
which preserves the aggregate option value and ratio of strike price to fair
market value of the property subject to option.

        (f)  Benefits and Perquisites. During the term of his employment, the
Executive will be entitled to benefits and perquisites as set forth on Schedule
4(f).

        5. Termination
        The Executive's employment shall terminate upon his death. The Employer
may terminate the Executive's employment for Disability or Cause, or without
Cause, and the Executive may terminate such employment at any time for Good
Reason (all as defined
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below). Any termination of such employment shall be subject to the following
conditions:

        (a) Regardless of the reason for such termination, the Employer will pay
the Executive his base salary through the date of termination and any amounts
owed to the Executive pursuant to the terms and conditions of the benefit plans
of the Employer at the time such payments are due.

        (b) If such employment is terminated as a result of the Executive's
Disability or death, the Employer will pay (i) one year's worth of base
compensation in a lump sum plus (11) following the determination of such award,
the prorated portion of any annual performance bonus the Executive would have
received for the year of such termination. These payments will be made to the
Executive or his legal representatives or to Executive's estate or as may be
directed by the legal representatives of such estate, as the case may be.

        (c) If such employment is terminated by the Employer for Cause or prior
to the end of the Initial Term by the Executive voluntarily for other than Good
Reason, the Employer will have no additional obligations to the Executive under
this Agreement.

        (d) If the Spin Off does not occur before December 31, 2000, then the
Executive shall have the right to terminate his employment effective as of June
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30, 2001 by providing written notice to Employer on or before February 28, 2001.
In the event the Executive so elects to terminate his employment, then upon such
election the Employer shall pay the Executive $350,000 in satisfaction of all
obligations under this agreement.

        (e) If the Employer terminates the Executive's employment other than
for Disability or Cause or the Executive terminates such employment for Good
Reason, then during the period commencing on the Executive's termination of
employment and ending on the date 24 months later (or February 28, 2005, if
earlier) the Employer will (i) pay the Executive his base salary at the level in
effect as of the date of termination (at the time such payments would normally
be made), (ii) pay the Executive 2 times his most recent performance bonus,
spread in monthly payments and (iii) fully vest all options.

        (f) Termination of Executive's employment for any reason whatsoever
shall not affect Executive's ability to exercise stock options that have vested
prior to the date of termination.

        (g) For purposes of this Agreement, the following terms shall have the
meanings specified below:

        (i) "Disability" will mean the Executive's absence from his full-time
     duties hereunder by
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reason of physical or mental illness for a period of six consecutive months.

        (ii) Termination for "Cause" will mean termination of the Executive's
     employment by the Employer following the Executive's:

                (A) gross misconduct,that is permanently and materially
         injurious to the Employer;

                (B) conviction of or plea of nolo contendere to, a felony or
         any crime involving financial impropriety by or before any criminal
         tribunal;

                (C) willful and continuing failure to substantially perform
        his reasonable duties (other than as a result of physical or mental
        illness) that is not corrected within 30 days following a written demand
        by the Employer that specifically identifies the manner in which the
        Employer believes the Executive has not substantially performed his
        duties.

        Notwithstanding the foregoing, the Executive shall not be deemed to have
        been terminated for Cause unless and until there shall have been
        delivered to the Executive a copy of a resolution duly adopted by the
        Board at a meeting of the Board called and held for
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        such purpose (after reasonable notice to Executive and an opportunity
        for the Executive, together with the Executive's counsel, to be heard
        before the Board), finding that in the good faith opinion of the Board,
        the Executive was guilty of the conduct set forth in clause (i), (ii) or
        (iii) of this section and specifying the particulars thereof.

                 (iii) Termination for "Good Reason" shall mean termination by
     the Executive following a material breach of this Agreement by the Employer
     or a diminution of Executive's responsibilities or status that is not
     corrected within 30 days of the Executive's notifying the Employer in
     writing of such breach or diminution.

        6.      Confidentiality; Non-Competition
        (a)     In consideration for any severance that may be due to the
Executive after termination of employment (but regardless of whether and for how
long any severance is in fact due) and for allowing the Executive's stock
options to be exercised after termination of employment (except for Cause), and
in return for other valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, for a
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period of two years commencing upon the termination of his employment hereunder
(regardless of the reason for the termination), the Executive shall not, without
written consent of the Employer, engage, as a stockholder, director, officer,
consultant or otherwise, in any enterprise which competes with the Employer or
any business of its subsidiaries, or directly or indirectly employ, contract for
or solicit the services in any capacity of any executive or management person
who is, or within the prior three months has been, employed by the Employer or
any such business. The Executive will not be deemed to be engaged in a competing
enterprise if (A) less than 10% of the gross receipts of such enterprise are
derived from businesses that compete with the Employer or businesses of its
affiliates that were under the Employer's management control, and (B) the
Executive's engagement does not involve such competing businesses. This
paragraph shall not bar Executive from owning up to 5% of the outstanding
securities of any publicly held company.

        (b) The Executive shall keep secret and confidential and not use (except
in connection with the business of the Employer and its affiliates or pursuant
to applicable law or court order) any confidential information with respect to
the business or affairs of the Employer or its subsidiaries. This
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obligation will be in effect while the Executive is employed by the Employer and
for thirty six (36) months after he ceases to be so employed, but it will not
apply at any time to information that is or becomes generally known to the
public (other than through a breach of this Section 6(b)).

        (c) The Executive acknowledges that the remedy at law for breach of his
covenants under this Section 6 will be inadequate and, accordingly, in the event
of any breach or threatened breach by the Executive of the provisions of this
Section 6 the Employer will be entitled (without the necessity of showing
economic loss or other actual damage), in addition to all other remedies to an
injunction restraining any such breach, without any bond or other security being
required. The Executive and the Employer recognize and agree that the duration
and scope for which the covenants not to compete and solicit set forth in this
Section 6 are to be effective are reasonable. In the event that any court
determines that the time period or the area, or both of them, are unreasonable
and that such covenants are to that extent unenforceable, the parties agree that
the covenants shall remain in full force and effect for the greatest time period
and in the greatest area that would not render them unenforceable.
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        (d) In the event of a breach by the Executive of any covenant under this
Section 6, the Executive agrees that, notwithstanding anything to the contrary
in this Agreement or any award of or letter agreement for any options to acquire
common stock of the Employer, all remaining obligations of the Employer
hereunder and under such options shall thereupon automatically be extinguished
and all such options shall thereupon automatically expire. No breach shall be
deemed to occur under this Section 6(d) until Employer delivers a written
allegation to Executive setting forth in reasonable detail the facts or events
constituting the breach; and further, no breach shall be deemed to have occurred
if Executive cures said breach within 30 days of such notice, unless such breach
was of such magnitude as to be incapable of being cured.

        7.      Inventions
        All copyrights, trademarks, proprietary processes and analytical models
or formulas and other intangible or intellectual property rights that may be
invented, conceived, developed or enhanced by the Executive during the term of
his employment under this Agreement that relate to the business or operations of
the Employer or any affiliate thereof of which the Executive has served as an
officer, or that result from any work performed by the Executive for the
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Employer or any such affiliate, will be the sole property of the Employer or
such affiliate, as the case may be, and the Executive hereby waives any right or
interest that he may otherwise have in respect thereof. Upon the reasonable
request of the Employer, the Executive will execute and deliver any instrument
or document reasonably necessary or appropriate to give effect to this Section 7
and do all other acts and things reasonably necessary to enable the Employer or
such affiliate, as the case may be, to exploit the same or to obtain patents or
similar protection with respect thereto.

        8.      Nontransferability: Forfeiture
        No amount payable hereunder shall be assignable or transferable, and no
right or interest of the Executive shall be subject to any lien, obligation or
liability of the Executive, except by will or the laws of descent and
distribution. Notwithstanding the immediately preceding sentence, the
Compensation Committee may, subject to the terms and conditions it may specify,
permit Executive to transfer any stock options (other than incentive stock
options) granted to him pursuant to the Incentive Compensation Plan to one or
more of his immediate family members or to trusts, limited liability companies
or family partnerships (collectively "family entities") established in whole or
in part for the
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benefit of the Executive and/or one or more of such immediately family members.
During the lifetime of the Executive, stock options shall be exercisable only by
the Executive or by the immediate family member or family entity to whom such
stock options have been transferred in accordance with this Section 8. For
purposes of this Plan, (a) "immediate family" shall mean the Executive's spouse
and issue (including adopted and stepchildren) and (b) "immediate family members
and family entity established in whole or in part for the benefit of the
Executive and/or one more of such immediate family members" shall be further
limited, if necessary, so that neither the transfer of a stock option to such
immediate family member or family entity, nor the ability of Executive to make
such transfer, shall have adverse consequences to the Employer or the Executive
by reason of Section 162(m) of the Code.

        9. No Obligation to Mitigate Damages; Other Rights
        The Executive shall not be required to mitigate damages or any amount
payable under this Agreement by seeking other employment or otherwise, nor shall
any such amount be reduced by any compensation received by the Executive from
another employer after the date of resignation or termination, or otherwise;
provided, however, in the event of a
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 termination of Executive by Employer other than by reason of Cause, Disability
 or death, then Executive shall have a duty to mitigate commencing one year
 after the date of termination, provided such duty shall be limited to a
 comparable position with comparable compensation, stock options and benefits.
 The provisions of this Agreement, and any payment provided for hereunder, shall
 not, to the extent permitted by law, reduce any amounts otherwise payable, or
 in any way diminish the Executive's rights under any other employee benefit
 plan, contract or arrangement.
                   10. Successors; Binding Agreement
                   (a) The Employer will require any successor
 (whether direct or indirect, by purchase, merger, consolidation or otherwise)
 to all or substantially ail of the business and/or assets of the Employer, by
 agreement in form and substance satisfactory to the Executive, to expressly
 assume and agree to perform this Agreement in the same manner and to the same
 extent that the Employer would be required to perform it if no such succession
 had taken place.
                   (b) This Agreement and all rights of the Executive hereunder
 will inure to the benefit of and be enforceable by the Executive's personal or
 legal representatives, executors, administrators, successors, heirs,
 distributees, devisees and
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legatees. If the Executive should die following his termination of employment
while any amounts would still be payable to him pursuant to the provisions of
Section 5 or Section 8 if he had continued to live, all such amounts will be
paid in accordance with the terms of this Agreement to the Executive's devisee,
legatee, or other designee or, if there be no such designee, to the Executive's
estate.

        11.     Notices
        For the purposes of this Agreement, notices, demands and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or (unless otherwise specified)
mailed by United States certified or registered mail, return receipt requested,
postage prepaid, addressed as follows:

        If to the Executive:
                Mr. Ned S. Goldstein
                8701 Overlook Rd.
                McLean, VA 22102

                Fax 703 827-0762

        If to the Employer:

                ZD Events
                Needham, MA
                Attention: Chief Executive Officer

        with a copy to:

                SOFTBANK Holdings Inc.
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                10 Langley Road, Suite 403
                Newton Center, MA 02159

                Attention:  Mr. Ronald D. Fisher
                            Vice Chairman

 or to such other address as either party may have furnished to the other in
 writing in accordance herewith, except that notices of change of address shall
 be effective only upon receipt.

        12.     Modification: Waiver
        No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing signed by
the Executive and the Employer and a duly authorized member of the Board. No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party will be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time. No agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party which
are not set forth expressly in this Agreement.

        13.     Certain Taxes
        In the event of termination of the Executive's employment as a result of
a Change in
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Control, the Company shall pay to the Executive an amount which, on an after-tax
basis (including federal income and excise taxes, and state and local income
taxes) equals the excise tax, if any, imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended, upon the executive by reason of amounts
payable under this Agreement (including this Section 8). For purposes of this
Section 13, the Executive shall be deemed to pay federal, state and local income
taxes at the highest marginal rate of taxation for the calendar year in which
the gross up payment is to be made, taking into account the maximum reduction in
federal income taxes which could be obtained from deduction of state and local
income taxes.

        14.     Entire Agreement
        This Agreement and the related documents referred to herein set forth
the entire agreement of the parties in respect of the subject matter contained
herein, and upon the effectiveness of this Agreement shall supersede all prior
agreements, promises, covenants, arrangements, communications, representations
or warranties, whether oral or written, by any officer, employee or
representative of any party hereto.

        15.     Validity
        The invalidity or unenforceability of any provision or provisions of
this Agreement will not
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affect the validity or enforceability of any other provision of this Agreement,
which will remain in full force and effect.

        16.     Governing Law
        This Agreement will be governed by, and construed in accordance with,
the laws of the State of New York. Each of the parties consents to personal
jurisdiction in any action brought in any court in New York City having subject
matter jurisdiction over matters arising under this Agreement.

        17.     Counterparts
        This Agreement may be signed in two counterparts, each of which shall be
deemed an original agreement, but both of which together shall constitute one
and the same instrument.

        18.     Withholding taxes
        All payments made pursuant to this Agreement are subject to withholding
of applicable income employment taxes. The Employer shall have the right to
require the Executive to pay to the Employer such amount required to be withheld
prior to the issuance or delivery of any shares of common stock deliverable upon
exercise of a stock option. The Compensation Committee may, in its discretion,
permit the Executive to elect to satisfy such withholding obligation by having
the Employer retain the number of
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shares of common stock whose fair market value equals the amount required to be
withheld.

        19.     Indemnification
        The Employer shall indemnify Executive if he is made, or threatened to
be made, a party to an action or proceeding, to the full extent permitted by
applicable law, including an action by or in the right of the Employer to
procure a judgment in its favor, by reason of the fact that Executive is or was
an officer, director or employee of the Employer, against all costs and expenses
resulting from or related to such action or proceeding, or any appeal thereof,
if Executive acted in good faith for a purpose which he reasonably believed to
be in the best interests of the Employer. The termination of any such action or
proceeding by judgment, settlement, conviction or upon a plea of nolo
contendere, or its equivalent, shall not in itself create the presumption that
Executive did not act in good faith for a purpose which he reasonably believed
to be in the best interests of the Employer. As used in this Section 20, (i)
"costs and expenses" means any and all costs, expenses and liabilities
incurred by Executive, including but not limited to (A) attorney fees, (B)
amounts paid in settlement of, or in the satisfaction of any order or judgment
in, any action or proceeding and (C) fines,
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                                                            Schedule 4 (f)

Benefits and Perquisites

         (a) Expenses. Executive shall be entitled to receive prompt
reimbursement for all documented expenses incurred by him in the performance of
his duties hereunder consistent with reimbursements accorded to General
Counsel's and other senior executives provided that Executive properly accounts
therefore in accordance with the Company's reimbursement policy.

         (b) Fringe Benefits. Executive shall be entitled to participate in and
receive benefits under all of the Company's benefit plans or programs generally
available to senior management of the Company, including, but not limited to any
retirement plan, medical, dental or disability insurance plans and all other
similar plans or programs. Nothing paid to Executive under any benefit plan
presently in effect or made available in the future shall be deemed to be in
lieu of compensation payable to Executive under this Agreement.

         (c) Life Insurance. So long as Executive is insurable, the Company
agrees to maintain in effect during the term hereof insurance on Executive's
life payable to his estate or his named beneficiary or beneficiaries in the
amount of $2,000,000. The ownership of such insurance policies may, at the sole
discretion of the Executive, be transferred to a trust for the benefit of his
spouse or family.

         (d) Vacations. During the term hereof, Executive shall be entitled to
sick leave and paid holidays consistent with the Company's sick leave and
holiday policy for senior management and up to four (4) weeks paid vacation
during each year. Any vacation time that is not taken in a given year shall be
carried forward to the following year or years, as the case may be but in no
event more than two (2) weeks on a cumulative basis. The Executive shall not
receive additional compensation for vacation time not taken.

         (e) Moving and Related Expenses. Employer shall reimburse Executive,
on a grossed up basis when applicable (i.e. so there is no after tax loss effect
on Executive), for all of his expenses and costs incurred in connection with
Executive and his immediate family's move of their primary residence from
McLean, Virginia to the Los Angeles area. Such expenses and costs shall include
but are not limited to moving and packing services, brokerage, closing and
related costs on the sale of Executive's current home, all closing and related
costs on the purchase of Executive's Los Angeles home and all costs and expenses
incurred in connection with Executive's and his family's relocation. Employer
shall reimburse Executive for the actual out of pocket loss incurred by
Executive on replacing lost memberships to various organizations in the McLean
Virgina area, which shall in any event not exceed $75,000.
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        penalties and assessments asserted or adjudged in any action or
        proceeding, and (ii) "action or proceeding" means any and all suits,
        claims, actions, investigations or proceedings whether civil, criminal
        or administrative, heretofore or hereafter instituted or asserted. For
        purposes of this Section 20, "Employer" means Newco or Ziff-Davis, as
        applicable.

        20.     ZD Events Guarantee
        ZD Events guarantees the performance of this Agreement by Newco until
the Spin Off is effectuated.

        IN WITNESS WHEREOF, the parties have signed this Agreement as of the
date and year first above written.

                ZD Events Inc.

                By: /s/ Fredric D. Rosen, Chairman of the Board
                   -------------------------

                /s/ Ned S. Goldstein
                ----------------------------
                Ned S. Goldstein
<PAGE>

                                             Schedule 4 (f)

Benefits and Perquisites

         (a) Expenses. Executive shall be entitled to receive prompt
reimbursement for all documented business expenses incurred by him in the
performance of his duties hereunder consistent with reimbursements accorded to
CFO's and other senior executives provided that Executive properly accounts
therefore in accordance with the Company's reimbursement policy.

         (b) Fringe Benefits. Executive shall be entitled to participate in and
receive benefits under all of the Company's benefit plans or programs generally
available to senior management of the Company, including, but not limited to any
retirement plan, medical, dental or disability insurance plans and all other
similar plans or programs. Nothing paid to Executive under any benefit plan
presently in effect or made available in the future shall be deemed to be in
lieu of compensation payable to Executive under this Agreement.

         (c) Life Insurance. So long as Executive is insurable, the Company
agrees to maintain in effect during the term hereof insurance on Executive's
life payable to his estate or his named beneficiary or beneficiaries in the
amount of $2,000,000. The ownership of such insurance policies may, at the sole
discretion of the Executive, be transferred to a trust for the benefit of his
spouse or family.

         (d) Vacations. During the term hereof, Executive shall be entitled to
sick leave and paid holidays consistent with the Company's sick leave and
holiday policy for senior management and up to four (4) weeks paid vacation
during each year. Any vacation time that is not taken in a given year shall be
carried forward to the following year or years, as the case may be but in no
event more than two (2) weeks, on a cumulative basis. The Executive shall not
receive additional compensation for vacation time not taken.<PAGE>

                                                                     Exhibit 4.1
 _______________________________________________________________________________

            PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1

                      Class A-1 6.713% Asset Backed Notes
                      Class A-2 7.275% Asset Backed Notes
                      Class A-3 7.365% Asset Backed Notes
                      Class A-4 7.405% Asset Backed Notes

                            ______________________

                                   INDENTURE

                            Dated as of June 1, 2000

                            ______________________

                  NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION

                               Indenture Trustee

________________________________________________________________________________
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
ARTICLE I.        DEFINITIONS AND INCORPORATION BY REFERENCE.................................................    2

         SECTION 1.1.    Definitions.........................................................................    2
         SECTION 1.2.    Incorporation by Reference of Trust Indenture Act...................................    9
         SECTION 1.3.    Rules of Construction...............................................................    9

ARTICLE II.       THE NOTES..................................................................................    9

         SECTION 2.1.    Form................................................................................    9
         SECTION 2.2.    Execution, Authentication and Delivery..............................................   10
         SECTION 2.3.    Temporary Notes.....................................................................   10
         SECTION 2.4.    Registration; Registration of Transfer and Exchange.................................   10
         SECTION 2.5.    Mutilated, Destroyed, Lost or Stolen Notes..........................................   11
         SECTION 2.6.    Persons Deemed Owner................................................................   12
         SECTION 2.7.    Payment of Principal and Interest; Defaulted Interest...............................   12
         SECTION 2.8.    Cancellation........................................................................   13
         SECTION 2.9.    Release of Collateral...............................................................   14
         SECTION 2.10.   Book-Entry Notes....................................................................   14
         SECTION 2.11.   Notices to Clearing Agency..........................................................   15
         SECTION 2.12.   Definitive Notes....................................................................   15

ARTICLE III.      COVENANTS..................................................................................   15

         SECTION 3.1.    Payment of Principal and Interest...................................................   15
         SECTION 3.2.    Maintenance of Office or Agency.....................................................   15
         SECTION 3.3.    Money for Payments To Be Held in Trust..............................................   16
         SECTION 3.4.    Existence...........................................................................   17
         SECTION 3.5.    Protection of Trust Fund............................................................   17
         SECTION 3.6.    Opinions as to Trust Fund...........................................................   18
         SECTION 3.7.    Performance of Obligations; Servicing of Receivables................................   18
         SECTION 3.8.    Negative Covenants..................................................................   20
         SECTION 3.9.    Annual Statement as to Compliance...................................................   20
         SECTION 3.10.   Issuer May Consolidate, Etc. Only on Certain Terms..................................   20
         SECTION 3.11.   Successor or Transferee.............................................................   22
         SECTION 3.12.   No Other Business...................................................................   23
         SECTION 3.13.   No Borrowing........................................................................   23
         SECTION 3.14.   Servicer's Obligations..............................................................   23
         SECTION 3.15.   Guarantees, Loans, Advances and Other Liabilities...................................   23
</TABLE>
<PAGE>

                                Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
         SECTION 3.16.   Capital Expenditures................................................................   23
         SECTION 3.17.   Compliance with Laws................................................................   23
         SECTION 3.18.   Restricted Payments.................................................................   23
         SECTION 3.19.   Notice of Events of Default.........................................................   23
         SECTION 3.20.   Further Instruments and Acts........................................................   24
         SECTION 3.21.   Amendments of Sale and Servicing Agreement and Trust Agreement......................   24
         SECTION 3.22.   Income Tax Characterization.........................................................   24

ARTICLE IV.       SATISFACTION AND DISCHARGE.................................................................   24

         SECTION 4.1.    Satisfaction and Discharge of Indenture.............................................   24
         SECTION 4.2.    Application of Trust Money..........................................................   25
         SECTION 4.3.    Repayment of Moneys Held by Paying Agent............................................   25

ARTICLE V.        EVENTS OF DEFAULT; REMEDIES................................................................   25

         SECTION 5.1.    Events of Default...................................................................   25
         SECTION 5.2.    Rights Upon Event of Default........................................................   27
         SECTION 5.3.    Collection of Indebtedness and Suits for Enforcement by Indenture Trustee...........   28
         SECTION 5.4.    Remedies............................................................................   30
         SECTION 5.5.    Optional Preservation of the Trust Fund.............................................   31
         SECTION 5.6.    Priorities..........................................................................   31
         SECTION 5.7.    Limitation of Suits.................................................................   32
         SECTION 5.8.    Unconditional Rights of Noteholders To Receive Principal and Interest...............   33
         SECTION 5.9.    Restoration of Rights and Remedies..................................................   33
         SECTION 5.10.   Rights and Remedies Cumulative......................................................   33
         SECTION 5.11.   Delay or Omission Not a Waiver......................................................   33
         SECTION 5.12.   Control by Noteholders..............................................................   33
         SECTION 5.13.   Waiver of Past Defaults.............................................................   34
         SECTION 5.14.   Undertaking for Costs...............................................................   34
         SECTION 5.15.   Waiver of Stay or Extension Laws....................................................   34
         SECTION 5.16.   Action on Notes.....................................................................   34
         SECTION 5.17.   Performance and Enforcement of Certain Obligations..................................   35
         SECTION 5.18.   Claims Under Policy.................................................................   35
         SECTION 5.19.   Preference Claims...................................................................   36
</TABLE>

                                      ii
<PAGE>

                               Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
ARTICLE VI.    THE INDENTURE TRUSTEE.........................................................................   37

     SECTION 6.1.       Duties of Indenture Trustee..........................................................   37
     SECTION 6.2.       Rights of Indenture Trustee..........................................................   38
     SECTION 6.3.       Individual Rights of Indenture Trustee...............................................   39
     SECTION 6.4.       Indenture Trustee's Disclaimer.......................................................   40
     SECTION 6.5.       Notice of Defaults...................................................................   40
     SECTION 6.6.       Reports by Indenture Trustee to Holders..............................................   40
     SECTION 6.7.       Compensation and Indemnity...........................................................   40
     SECTION 6.8.       Replacement of Indenture Trustee.....................................................   41
     SECTION 6.9.       Successor Indenture Trustee by Merger................................................   42
     SECTION 6.10.      Appointment of Co-Indenture Trustee or Separate Indenture Trustee....................   43
     SECTION 6.11.      Eligibility; Disqualification........................................................   44
     SECTION 6.12.      Preferential Collection of Claims Against Issuer.....................................   44
     SECTION 6.13.      Appointment and Powers...............................................................   44
     SECTION 6.14.      Performance of Duties................................................................   44
     SECTION 6.15.      Limitation on Liability..............................................................   44
     SECTION 6.16.      Reliance Upon Documents..............................................................   45
     SECTION 6.17.      [RESERVED]...........................................................................   45
     SECTION 6.18.      [RESERVED]...........................................................................   45
     SECTION 6.19.      Representations and Warranties of the Indenture Trustee..............................   45
     SECTION 6.20.      Waiver of Setoffs....................................................................   46
     SECTION 6.21.      Control by the Controlling Party.....................................................   46

ARTICLE VII.   NOTEHOLDERS' LISTS AND REPORTS................................................................   46

     SECTION 7.1.       Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders............   46
     SECTION 7.2.       Preservation of Information; Communications to Noteholders...........................   46
     SECTION 7.3.       Reports by Issuer....................................................................   47
     SECTION 7.4.       Reports by Indenture Trustee.........................................................   47
     SECTION 7.5.       Fiscal Year..........................................................................   47

ARTICLE VIII.  ACCOUNTS, DISBURSEMENTS AND RELEASES..........................................................   47

     SECTION 8.1.       Collection of Money..................................................................   47
     SECTION 8.2.       Trust Accounts.......................................................................   48
     SECTION 8.3.       General Provisions Regarding Accounts................................................   48
</TABLE>

                                      iii
<PAGE>

                               Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
     SECTION 8.4.     Release of Trust Fund..................................................................   49
     SECTION 8.5.     Opinion of Counsel.....................................................................   49

ARTICLE IX.    SUPPLEMENTAL INDENTURES.......................................................................   50

     SECTION 9.1.     Supplemental Indentures................................................................   50
     SECTION 9.2.     Supplemental Indentures with Consent of Noteholders....................................   51
     SECTION 9.3.     Execution of Supplemental Indentures...................................................   52
     SECTION 9.4.     Effect of Supplemental Indenture.......................................................   52
     SECTION 9.5.     Conformity With Trust Indenture Act....................................................   52
     SECTION 9.6.     Reference in Notes to Supplemental Indentures..........................................   53

ARTICLE X.     REDEMPTION OF NOTES...........................................................................   53

     SECTION 10.1.    Redemption.............................................................................   53
     SECTION 10.2.    Form of Redemption Notice..............................................................   53
     SECTION 10.3.    Notes Payable on Redemption Date.......................................................   54

ARTICLE XI.    MISCELLANEOUS.................................................................................   54

     SECTION 11.1.    Compliance Certificates and Opinions, etc..............................................   54
     SECTION 11.2.    Form of Documents Delivered to Indenture Trustee.......................................   55
     SECTION 11.3.    Acts of Noteholders....................................................................   56
     SECTION 11.4.    Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies...............   57
     SECTION 11.5.    Notices to Noteholders; Waiver.........................................................   58
     SECTION 11.6.    Alternate Payment and Notice Provisions................................................   58
     SECTION 11.7.    Conflict with Trust Indenture Act......................................................   58
     SECTION 11.8.    Effect of Headings and Table of Contents...............................................   58
     SECTION 11.9.    Successors and Assigns.................................................................   58
     SECTION 11.10.   Separability...........................................................................   59
     SECTION 11.11.   Benefits of Indenture..................................................................   59
     SECTION 11.12.   Legal Holidays.........................................................................   59
     SECTION 11.13.   GOVERNING LAW..........................................................................   59
     SECTION 11.14.   Counterparts...........................................................................   59
     SECTION 11.15.   Recording of Indenture.................................................................   59
     SECTION 11.16.   Trust Obligation.......................................................................   59
     SECTION 11.17.   No Petition............................................................................   60
     SECTION 11.18.   Inspection.............................................................................   60
</TABLE>

                                      iv
<PAGE>

                               Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
Exhibit A        -- Schedule of Receivables
Exhibit B-1      -- Form of Class A-1 Note
Exhibit B-2      -- Form of Class A-2 Note
Exhibit B-3      -- Form of Class A-3 Note
Exhibit B-4      -- Form of Class A-4 Note
</TABLE>

                                       v
<PAGE>

                             CROSS REFERENCE TABLE

<TABLE>
<CAPTION>
TIA Indenture
Section Section
<S>                                                                                                  <C>
310      (a)(1).................................................................................          6.11
         (a)(2).................................................................................          6.11
         (a)(3).................................................................................     6.10;6.11
         (a)(4).................................................................................          N.A.
         (a)(5).................................................................................          6.11
         (b)....................................................................................     6.8;6.11
         (c)....................................................................................          N.A.
311      (a)....................................................................................          6.12
         (b)....................................................................................          6.12
         (c)....................................................................................          N.A.
312      (a)....................................................................................          7.1
         (b)....................................................................................          7.2
         (c)....................................................................................          7.2
313      (a)....................................................................................          7.4
         (b)(1).................................................................................          7.4
         (b)(2).................................................................................          7.4
         (c)....................................................................................          11.5
         (d)....................................................................................          7.3
314      (a)....................................................................................          3.9;7.3
         (b)....................................................................................          11.15
         (c)(1).................................................................................          11.1
         (c)(2).................................................................................          11.1
         (c)(3).................................................................................          11.1
         (d)....................................................................................          11.1
         (e)....................................................................................     1.1;11.1
         (f)....................................................................................          11.1
315      (a)....................................................................................          6.1
         (b)....................................................................................     6.5;11.5
         (c)....................................................................................          6.1
         (d)....................................................................................          6.1
         (e)....................................................................................          5.14
316      (a) (last sentence)....................................................................          1.1
         (a)(1)(A)..............................................................................          5.12
         (a)(1)(B)..............................................................................          5.13
         (a)(2).................................................................................          N.A.
         (b)....................................................................................          5.7;5.8
         (c)....................................................................................          N.A.
317      (a)(1).................................................................................          5.3
         (a)(2).................................................................................          5.3
         (b)....................................................................................          3.3
318      (a)....................................................................................          11.7
         (b)....................................................................................          N.A.
</TABLE>
<PAGE>

<TABLE>
         <S>                                                                                              <C>
         (c).........................................................................................     11.7
</TABLE>
___________________
1.       Note: This Cross Reference Table shall not, for any purpose, be deemed
         to be part of this Indenture.

2.       N.A. means Not Applicable.

                                       2
<PAGE>

     INDENTURE dated as of June 1, 2000, between PEOPLEFIRST.COM VEHICLE
RECEIVABLES OWNER TRUST 2000-1, a Delaware business trust (the "Issuer") and
Norwest Bank Minnesota, National Association, a national banking association, as
trustee (the "Indenture Trustee").

     Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer's Class A-1 6.713% Asset
Backed Notes, Class A-2 7.275% Asset Backed Notes, Class A-3 7.365% Asset Backed
Notes and Class A-4 7.405% Asset Backed Notes:

     As security for the payment and performance by the Issuer of its
obligations under this Indenture and the Notes, the Issuer has agreed to assign
the Collateral (as defined below) as collateral to the Indenture Trustee on
behalf of the Noteholders.

     Financial Security Assurance Inc., a New York financial guaranty insurance
company (the "Insurer"), has issued and delivered a financial guaranty insurance
policy, dated the Closing Date (with endorsements, the "Policy"), pursuant to
which the Insurer guarantees Scheduled Payments, as defined in the Policy.

     As an inducement to the Insurer to issue and deliver the Policy, the Issuer
and the Insurer have executed and delivered the Insurance and Indemnity
Agreement, dated as of June 1, 2000 (as amended from time to time, the
"Insurance Agreement"), among the Insurer, the Issuer, the Transferor and
PeopleFirst Finance, LLC.

     As an additional inducement to the Insurer to issue the Policy, and as
security for the performance by the Issuer of the Insurer Secured Obligations
and as security for the performance by the Issuer of the Indenture Trustee
Secured Obligations, the Issuer has agreed to assign the Collateral (as defined
below) as collateral to the Indenture Trustee for the benefit of the Issuer
Secured Parties, as their respective interests may appear.

                                GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee on the Closing Date, for
the benefit of the Issuer Secured Parties to secure the Issuer Secured
Obligations, all of the Issuer's right, title and interest in and to all
accounts, money, chattel paper, securities, instruments, documents, deposit
accounts, certificates of deposit, letters of credit, advices of credit,
banker's acceptances, general intangibles, contract rights, investment property,
goods and other property consisting of, arising from or relating to (a) the
Receivables, and all moneys due thereon after the Cutoff Date; (b) an assignment
of the security interests in the Financed Vehicles granted by Obligors pursuant
to the Receivables and any other interest of the Issuer in the Financed
Vehicles; (c) any proceeds with respect to the Receivables repurchased pursuant
to the terms of the Sale and Servicing Agreement; (d) all rights under any
Service Contracts on the related Financed Vehicles; (e) any proceeds with
respect to the Receivables from claims on any physical damage, theft, credit
life or disability insurance policies covering Financed Vehicles or Obligors and
any proceeds from liquidation of any Receivable and Net Liquidation Proceeds
with respect to the Receivables; (f) all funds on deposit or other property from
time to time in the Trust Accounts, and in all investments and proceeds thereof
and all rights of the Issuer therein (including all income dividends, earnings,
profits or other distributions of cash or other property thereon); (g) the
Issuer's rights and benefits, but none of its obligations or burdens, under the
Sale and Servicing Agreement, including the delivery requirements,
representations and warranties and the cure and repurchase obligations of
PeopleFirst Finance, LLC and PF Funding II, LLC under the Sale and Servicing
Agreement; (h) all items contained in the Receivables Files, computer tapes or
disk drives, and any and all other documents that PeopleFirst Finance, LLC keeps
on file in accordance with its customary procedures relating to the Receivables,
the Obligors or the Financed Vehicles, and (i) all present and future claims,
demands, causes and chooses 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
<PAGE>

conversion, voluntary or involuntary, into cash or other liquid property, all
proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel
paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights
to payment of any and every kind and other forms of obligations and receivables,
instruments and other property which at any time constitute all or part of or
are included in the proceeds of any of the foregoing (collectively, the
"Collateral").

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

     The Indenture Trustee on behalf of the Holders of the Notes, and for the
benefit of the Insurer acknowledges such Grant, accepts the trusts under this
Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties required in this Indenture in accordance with the terms
hereof.

                                  ARTICLE I.

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

     SECTION 1.1.   Definitions. Except as otherwise specified herein, the
                    -----------
following terms have the respective meanings set forth below for all purposes of
this Indenture.

     "Act" has the meaning specified in Section 11.3(a).
      ---

     "Authorized Officer" means, with respect to the Issuer and the Servicer,
      ------------------
any officer of the Owner Trustee or the Servicer, as applicable, who is
authorized to act for the Owner Trustee or the Servicer, as applicable, in
matters relating to the Issuer or the Servicer and who is identified on the list
of Authorized Officers delivered by the Servicer to the Indenture Trustee on the
Closing Date (as such list may be modified or supplemented from time to time
thereafter) or, in the case of the Owner Trustee, a Responsible Officer of the
Owner Trustee.

     "Book Entry Notes" means a beneficial interest in the Notes, ownership and
      ----------------
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.10.

     "Class A-1 Interest Rate"  means 6.713%.
      -----------------------

     "Class A-2 Interest Rate" means 7.275%.
      -----------------------

     "Class A-3 Interest Rate" means 7.365%.
      -----------------------

     "Class A-4 Interest Rate" means 7.405%.
      -----------------------

     "Class A-1 Notes" means the Class A-1 Notes, substantially in the form of
      ---------------
Exhibit B-1.

     "Class A-2 Notes" means the Class A-2 Notes, substantially in the form of
      ---------------
Exhibit B-2.

     "Class A-3 Notes" means the Class A-3 Notes, substantially in the form of
      ---------------
Exhibit B-3.

     "Class A-4 Notes" means the Class A-4 Notes, substantially in the form of
      ---------------
Exhibit B-4.

                                       2
<PAGE>

     "Clearing Agency" means an organization registered as a "clearing agency"
      ---------------
pursuant to Section 17A of the Exchange Act.

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

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

     "Collateral" has the meaning specified in the Granting Clause of this
      ----------
Indenture.

     "Corporate Trust Office" means the principal office of the Indenture
      ----------------------
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 Norwest Center, Sixth Street and Marquette Avenue, MAC N9311-161 Minneapolis,
Minnesota 55479, Attention: Corporate Trust Services/Asset Backed
Administration, Attention: Corporate Trust Department or at such other address
as the Indenture Trustee may designate from time to time by notice to the
Noteholders, the Insurer, the Servicer and the Issuer, or the principal
corporate trust office of any successor Indenture Trustee (the address of which
the successor Indenture Trustee will notify the Noteholders and 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" has the meaning specified in Section 2.10.
      ----------------

     "Event of Default" has the meaning specified in Section 5.1.
      ----------------

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

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

     "Grant" means mortgage, pledge, bargain, sell, warrant, alienate, remise,
      -----
release, convey, assign, transfer, create, grant a lien upon or a security
interest in or right of set-off against, deposit, or set over and confirm
pursuant to this Indenture.  A Grant of the Collateral 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 Collateral 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

                                       3
<PAGE>

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 and supplemented from time to
      ---------
time.

     "Indenture Trustee" means Norwest Bank Minnesota, National Association not
      -----------------
in its individual capacity but as trustee under this Indenture, or any successor
Indenture Trustee under this Indenture.

     "Indenture Trustee Secured Obligations" means all amounts and obligations
      -------------------------------------
which the Issuer may at any time owe to the Indenture Trustee in its individual
capacity and the Noteholders under this Indenture or the Notes.

     "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 Seller 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 Seller or any Affiliate of
any of the foregoing Persons and (c) is not connected with the Issuer, any such
other obligor, the Seller 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 Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.1, prepared by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Indenture 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.

     "Insurance Agreement Indenture Cross Default" has the meaning assigned to
      -------------------------------------------
such term in the Insurance Agreement.

     "Insurer Default" has the meaning assigned to such term in the Insurance
      ---------------
Agreement.

     "Insurer Secured Obligations" means all amounts and obligations which the
      ---------------------------
Issuer may at any time owe to or on behalf of the Insurer under this Indenture,
the Insurance Agreement or any other Basic Document.

     "Interest Rate" means with respect to the (i) Class A-1 Notes, the Class A-
      -------------
1 Interest Rate, (ii) Class A-2 Notes, the Class A-2 Interest Rate, (iii) Class
A-3 Notes, the Class A-3 Interest Rate and (iv) Class A-4 Notes, the Class A-4
Interest Rate.

     "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 Indenture Trustee.

                                       4
<PAGE>

     "Issuer Secured Obligations" means the Insurer Secured Obligations and the
      --------------------------
Indenture Trustee Secured Obligations.

     "Issuer Secured Parties" means each of (i) the Indenture Trustee in respect
      ----------------------
of the Indenture Trustee Secured Obligations and (ii) the Insurer in respect of
the Insurer Secured Obligations.

     "Note" means any of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes
      ----
or Class A-4 Notes substantially in the form of Exhibit B-1, Exhibit B-2,
Exhibit B-3 and Exhibit B-4, respectively.

     "Note Depository Agreement" means the agreement among the Issuer, the
      -------------------------
Indenture Trustee, the Servicer and The Depository Trust Company, as the initial
Clearing Agency, dated June 30, 2000, substantially in the form of Exhibit C.

     "Note Majority" means the Holders of Notes evidencing a majority of the
      -------------
Outstanding Amount of the Notes.

     "Note Owner"  means, with respect to a Book-Entry Note, the person who is
      ----------
the owner of such Book-Entry Note, as reflected on the books of the Clearing
Agency, or on the books of a Person maintaining an account with such Clearing
Agency (directly as a Clearing Agency Participant or as an indirect
participant), in each case in accordance with the rules of such Clearing Agency.

     "Note Register" and "Note Registrar" have the respective meanings specified
      -------------       --------------
in Section 2.4.

     "Notice of Claim" has the meaning specified in Section 5.18.
      ---------------

     "Officer's Certificate"  means a certificate signed by any Authorized
      ---------------------
Officer of the Owner Trustee, under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1 and TIA
Section 314, and delivered to the Indenture 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, the Seller or the Servicer and who shall be satisfactory
to the Indenture Trustee and, if addressed to the Insurer, satisfactory to the
Insurer, and which shall comply with any applicable requirements of Section
11.01, and shall be in form and substance satisfactory to the Indenture Trustee,
and if addressed to the Insurer, satisfactory to the Insurer.

     "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 the Note Registrar for cancellation;

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

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

                                       5
<PAGE>

     provided, however, that Notes which have been paid with proceeds of the
     --------  -------
Policy shall continue to remain Outstanding for purposes of this Indenture until
the Insurer has been paid as subrogee hereunder or reimbursed pursuant to the
Insurance Agreement as evidenced by a written notice from the Insurer delivered
to the Indenture Trustee, and the Insurer shall be deemed to be the Holder
thereof to the extent of any payments thereon made by the Insurer; provided,
                                                                   --------
further, 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 Basic Document, Notes owned by
the Issuer, any other obligor on the Notes, the Seller, the Servicer, or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Indenture Trustee shall
be protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes that a Responsible Officer of the
Indenture Trustee either actually knows to be so owned or has received written
notice thereof 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 Indenture 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 Seller or any Affiliate of any of the foregoing Persons.

     "Outstanding Amount" means the aggregate principal amount of all Notes or
      ------------------
class of Notes, as applicable, Outstanding at the date of determination.

     "Paying Agent" means the Indenture Trustee or any other Person that meets
      ------------
the eligibility standards for the Indenture Trustee specified in Section 6.11
and is authorized by the Issuer to make the payments to and distributions from
the Collection Account and the Note Distribution Account, including payment of
principal of or interest on the Notes on behalf of the Issuer.

     "Policy" means the financial guaranty insurance policy issued by the
      ------
Insurer with respect to the Notes, including any endorsements thereto, in the
form of Annex I to the Insurance Agreement.

     "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 2.5 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.

     "Preference Claim" has the meaning specified in Section 5.19.
      ----------------

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

     "Record Date" means, with respect to a Payment Date or Redemption Date, the
      -----------
close of business on the Business Day preceding such Payment Date or Redemption
Date.

     "Redemption Date" means in the case of a redemption of the Notes pursuant
      ---------------
to Section 10.1(a) or a payment to Noteholders pursuant to Section 10.1(b), the
Payment Dates specified by the Servicer or the Issuer pursuant to Section
10.1(a) or (b) as applicable.

     "Redemption Price" means (a) in the case of a redemption of the Notes
      ----------------
pursuant to Section 10.1(a), an amount equal to the unpaid principal amount of
the then Outstanding Amount of each class of Notes being redeemed plus accrued
and unpaid interest thereon to but excluding the Redemption Date, or (b) in the
case of a payment made to Noteholders pursuant to Section 10.1(b), the amount on
deposit in the Note Distribution Account, but not in excess of the amount
specified in clause (a) above.

     "Responsible Officer" means, (i) with respect to the Indenture Trustee, any
      -------------------
officer within the Corporate Trust Office of the Indenture Trustee, including
any Vice President, Assistant Vice President,

                                       6
<PAGE>

Assistant Treasurer, Assistant Secretary, or any other officer of the Indenture
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also, with respect to a particular matter, any
other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject and (ii) with respect
to the Owner Trustee, any officer within the Corporate Trust Administration
office of the Owner Trustee, including any Vice President, Assistant Vice
President, Assistant Treasurer, Assistant Secretary or any other officer of the
Owner Trustee customarily performing functions similar to those performed by any
of the above designated officers and also, with respect to a particular matter,
any other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.

     "Sale and Servicing Agreement" means the Sale and Servicing Agreement dated
      ----------------------------
as of June 1, 2000, among the Issuer, the Seller, the Servicer, the Transferor,
the Depositor, the Indenture Trustee and the Backup Servicer, as the same may be
amended or supplemented from time to time.

     "Schedule of Receivables" means the listing of the Receivables set forth in
      -----------------------
Exhibit A (which Exhibit may be in the form of microfiche).

     "Scheduled Payments" has the meaning specified in the Policy.
      ------------------

     "Securities Act" means the Securities Act of 1933, as amended.
      --------------

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

     "Successor Servicer" has the meaning specified in Section 3.7(e).
      ------------------

     "Termination Date" means the latest to occur of (i) the expiration of the
      ----------------
Policy and the return of the Policy to the Insurer for cancellation, (ii) the
date on which the Insurer shall have received payment and performance of all
Insurer Issuer Secured obligations and (iii) the date on which the Indenture
Trustee shall have received payment and performance of all Indenture Trustee
Secured Obligations.

     "Trust Fund"  means all money, instruments, rights and other property that
      ----------
are subject or intended to be subject to the lien and security interest of this
Indenture for the benefit of the Noteholders (including all property and
interests Granted to the Indenture Trustee), including all proceeds thereof.

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

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

     Except as otherwise specified herein, the following terms have the
respective meanings set forth in the Sale and Servicing Agreement as in effect
on the Closing Date for all purposes of this Indenture, and the definitions of
such terms are equally applicable both to the singular and plural forms of such
terms:

<TABLE>
<CAPTION>
                                                                                  Section of Sale
        Term                                                                  and Servicing Agreement
        ----                                                                  -----------------------
<S>                                                                           <C>
Affiliate....................................................................       Section 1.1
Backup Servicer..............................................................       Section 1.1
Backup Servicer Fee..........................................................       Section 1.1
Basic Documents..............................................................       Section 1.1
</TABLE>

                                       7
<PAGE>

<TABLE>
<CAPTION>
                                                                                   Section of Sale
         Term                                                                   and Servicing Agreement
         ----                                                                   -----------------------
<S>                                                                             <C>
Business Day.................................................................          Section 1.1
Class........................................................................          Section 1.1
Closing Date.................................................................          Section 1.1
Collection Account...........................................................          Section 1.1
Controlling Party............................................................          Section 1.1
Depositor....................................................................          Section 1.1
Distribution Amount..........................................................          Section 1.1
Draw Date....................................................................          Section 1.1
Payment Date.................................................................          Section 1.1
Eligible Investments.........................................................          Section 1.1
Final Scheduled Payment Date.................................................          Section 1.1
Financed Vehicle.............................................................          Section 1.1
Indenture Trustee Fee........................................................          Section 1.1
Noteholders' Distributable Amount............................................          Section 1.1
Obligor......................................................................          Section 1.1
Original Pool Balance........................................................          Section 1.1
Payment Date.................................................................          Section 1.1
Person.......................................................................          Section 1.1
Policy Claim Amount..........................................................          Section 1.1
Pool Balance.................................................................          Section 1.1
Rating Agency................................................................          Section 1.1
Rating Agency Condition......................................................          Section 1.1
Receivable...................................................................          Section 1.1
Seller.......................................................................          Section 1.1
Servicer.....................................................................          Section 1.1
Servicer Default.............................................................          Section 1.1
Trust Accounts...............................................................          Section 1.1
</TABLE>

     Capitalized terms used herein and not otherwise defined herein or in the
Sale and Servicing Agreement have the meanings assigned to them in the Trust
Agreement.

     SECTION 1.2.   Incorporation by Reference of Trust Indenture Act.  Whenever
                    -------------------------------------------------
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture.  The following TIA terms used
in this Indenture have the following meanings:  "Commission" means the
Securities and Exchange Commission.  "Indenture Securities" means the Notes.
"Indenture Securityholder" means a Noteholder.  "Indenture to be qualified"
means this Indenture.  "indenture trustee" or "institutional trustee" means the
Indenture 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.

     SECTION 1.3.   Rules of Construction.  Unless the context otherwise
                    ---------------------
requires:

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

                                       8
<PAGE>

                    (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; and

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

                                  ARTICLE II.

                                   The Notes
                                   ---------

     SECTION 2.1.   Form.  The Class A-1 Notes, the Class A-2 Notes, the Class
                    ----
A-3 Notes and the Class A-4 Notes, in each case, together with the Indenture
Trustee's certificate of authentication, shall be in substantially the form set
forth in Exhibit B-1, Exhibit B-2, Exhibit B-3 and Exhibit B-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 Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

     Each Note shall be dated the date of its authentication.  The terms of the
Notes set forth in Exhibit B are part of the terms of this Indenture.

     SECTION 2.2.   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 Indenture Trustee shall upon receipt of the Policy and Issuer Order
authenticate and deliver Class A-1 Notes for original issue in an aggregate
principal amount of $31,000,000, Class A-2 Notes for original issue in the
aggregate principal amount of $109,000,000, Class A-3 Notes for original issue
in the aggregate principal amount of $34,000,000 and Class A-4 Notes for
original issue in the aggregate principal amount of $71,000,000.  Notes
Outstanding at any time may not exceed such amount except as provided in Section
2.5.

     Each Note shall be dated the date of its authentication.  The Notes shall
be issuable as registered Notes in the minimum denomination of $1,000 and in
$1,000 integral multiples thereof (except for one Note of each class which may
be issued in a denomination other than an integral multiple of $1,000).

     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

                                       9
<PAGE>

executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.

     SECTION 2.3.   Temporary Notes.  Pending the preparation of Definitive
                    ---------------
Notes, the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes 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 3.2, without charge to the Holder.  Upon surrender for
cancellation of any one or more temporary Notes, the Issuer shall execute and
the Indenture Trustee shall authenticate and deliver in exchange therefor a like
principal amount of Definitive Notes of authorized denominations.  Until so
exchanged, the temporary Notes shall in all respects be entitled to the same
benefits under this Indenture as Definitive Notes.

     SECTION 2.4.   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 Indenture Trustee shall be "Note Registrar" for the purpose of
registering Notes and transfers of Notes as herein provided.  Upon any
resignation of any Note Registrar, the Issuer shall promptly appoint a successor
or, if it elects not to make such an appointment, assume the duties of Note
Registrar.

     If a Person other than the Indenture Trustee is appointed by the Issuer as
Note Registrar, the Issuer will give the Indenture Trustee prompt written notice
of the appointment of such Note Registrar and of the location, and any change in
the location, of the Note Register, and the Indenture Trustee shall have the
right to inspect the Note Register at all reasonable times and to obtain copies
thereof, and the Indenture Trustee shall have the right to rely upon a
certificate executed on behalf of the Note Registrar by an Executive Officer
thereof as to the names and addresses of the 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 3.2, if the
requirements of Section 8-401(1) of the UCC are met the Issuer shall execute and
upon its request the Indenture Trustee shall authenticate and the Noteholder
shall obtain from the Indenture Trustee, in the name of the designated
transferee or transferees, one or more new Notes, in any authorized
denominations, of the same class and a like aggregate principal amount.

     Subject to the restrictions set forth in this Section 2.4, at the option of
the Holder, Notes may be exchanged for other Notes in any authorized
denominations, of the same Class and a like aggregate principal amount, upon
surrender of the Notes to be exchanged at such office or agency.  Whenever any
Notes are so surrendered for exchange, if the requirements of Section 8-401(1)
of the UCC are met the Issuer shall execute and upon its request the Indenture
Trustee shall authenticate and the Noteholder shall obtain from the Indenture
Trustee, the Notes which the Noteholder making the exchange is entitled to
receive.

     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.

                                       10
<PAGE>

     Every Note presented or surrendered for registration of transfer or
exchange shall be (i) duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the 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 Securities Transfer Agents Medallion Program
("Stamp") or such other "signature guarantee program" as may be determined by
the Note Registrar in addition to, or in substitution for, Stamp, all in
accordance with the Exchange Act, and (ii) accompanied by such Note and such
other documents as the Indenture Trustee may require.

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

     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 2.5.   Mutilated, Destroyed, Lost or Stolen Notes.  If (i) any
                    ------------------------------------------
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee and the Insurer
(unless an Insurer Default shall have occurred and be continuing) such security
or indemnity as may be required by it to hold the Issuer, the Indenture Trustee
and the Insurer harmless, then, in the absence of notice to the Issuer, the Note
Registrar or the Indenture Trustee that such Note has been acquired by a bona
fide purchaser, and provided that the requirements of Section 8-405 of the UCC
are met, the Issuer shall execute and upon its request the Indenture Trustee
shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note; 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, the Indenture Trustee and the Insurer 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 Indenture Trustee in connection
therewith.

     Upon the issuance of any replacement Note under this Section, the Issuer
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 Indenture
Trustee) 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.

                                       11
<PAGE>

     SECTION 2.6.   Persons Deemed Owner.  Prior to due presentment for
                    --------------------
registration of transfer of any Note, the Issuer, the Indenture Trustee, any
agent of the Issuer, the Indenture Trustee or the Insurer may treat the Person
in whose name any Note is registered (as of the day of determination) as the
owner of such Note for the purpose of receiving payments of principal of and
interest, if any on such Note and for all other purposes whatsoever, whether or
not such Note be overdue, and none of the Issuer, the Indenture Trustee nor any
agent of the Issuer, the Insurer or the Indenture Trustee shall be affected by
notice to the contrary.

     SECTION 2.7.   Payment of Principal and Interest; Defaulted Interest.
     -------------  -----------------------------------------------------

     (a) The Notes shall accrue interest as provided in the forms of the Class
A-1 Note, the Class A-2 Note, the Class A-3 Note and the Class A-4 Note set
forth in Exhibits B-1, B-2, B-3 and B-4, respectively, and such interest shall
be payable on each Payment Date as specified therein. 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 2.12,
with respect to Notes registered on the Record Date in the name of the nominee
of the Clearing Agency (initially, such nominee to be Cede & Co.), payment 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 or on the Final Scheduled
Payment Date for such Note (and except for the Redemption Price for any Note
called for redemption pursuant to Section 10.1(a)) which shall be payable as
provided below. The funds represented by any such checks returned undelivered
shall be held in accordance with Section 3.3.

     (b) The principal of each Note shall be payable in installments on each
Payment Date to the person registered as the holder thereof on the related
Record Date as provided in the forms of the Class A-1 Note, the Class A-2 Note,
the Class A-3 Note and the Class A-4 Note set forth in Exhibits B-1, B-2, B-3
and B-4, respectively. Notwithstanding the 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,
if the Indenture Trustee or the Holders of the Notes representing not less than
a majority of the Outstanding Amount of the Notes have declared the Notes to be
immediately due and payable in the manner provided in Section 5.2. All principal
payments on each class of Notes shall be made pro rata to the Noteholders of
such class entitled thereto. The Indenture Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date
preceding the 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 or transmitted by facsimile 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
10.2.

     (c) If the Issuer defaults in a payment of interest on the Notes, the
Issuer shall pay defaulted interest (plus interest on such defaulted interest to
the extent lawful) at the applicable Interest Rate in any lawful manner.  The
Issuer may pay such defaulted interest to the Persons who are Noteholders on a
subsequent special record date, which date shall be at least five Business Days
prior to the payment date.  The Issuer shall fix or cause to be fixed any such
special record date and payment date, and, at least 15 days before any such
special record date, the Issuer shall mail to each Noteholder and the Indenture
Trustee a notice that states the special record date, the payment date and the
amount of defaulted interest to be paid.

     (d) Promptly following the date on which all principal of and interest on
the Notes has been paid in full and the Notes have been surrendered to the
Indenture Trustee, the Indenture Trustee shall, if the

                                       12
<PAGE>

Insurer has paid any amount in respect of the Notes under the Policy or
otherwise which has not been reimbursed to it, deliver such surrendered Notes to
the Insurer.

     SECTION 2.8.   Cancellation.  Subject to Section 2.7(d), all Notes
                    ------------
surrendered for payment, registration of transfer, exchange or redemption shall,
if surrendered to any Person other than the Indenture Trustee, be delivered to
the Indenture Trustee and shall be promptly canceled by the Indenture Trustee.
Subject to Section 2.7(d), the Issuer may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any manner whatsoever, and all
Notes so delivered shall be promptly canceled by the Indenture 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.
Subject to Section 2.7(d), all canceled Notes may be held or disposed of by the
Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that
they be destroyed or returned to it; provided that such Issuer Order is timely
and the Notes have not been previously disposed of by the Indenture Trustee.

     SECTION 2.9.   Release of Collateral.  The Indenture Trustee shall, on or
                    ---------------------
after the Termination Date, release any remaining portion of the Trust Fund from
the lien created by this Indenture and deposit in the Collection Account any
funds then on deposit in any other Trust Account.  The Indenture Trustee shall
release property from the lien created by this Indenture pursuant to this
Section 2.9 only upon receipt of an Issuer Request accompanied by an Officer's
Certificate, an Opinion of Counsel meeting the applicable requirements of
Section 11.1 and (if required by the TIA) Independent Certificates in accordance
with TIA Sections 314(c) and 314(d)(1).

     Notwithstanding this Section 2.9 or any other provision of this Agreement,
the Issuer may (A) collect, liquidate, sell or otherwise dispose of Receivables
as and to the extent permitted or required by the Basic Documents and (B) make
cash payments out of the Trust Accounts as and to the extent permitted or
required by the Basic Documents.

     SECTION 2.10.  Book-Entry Notes.  The Notes, upon original issuance, will
                    ----------------
be issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company, the initial Clearing Agency, by,
or on behalf of, the Issuer.  Such Notes shall initially be registered on the
Note Register in the name of Cede & Co., the nominee of the initial Clearing
Agency, and no Note Owner will receive a Definitive Note representing such Note
Owner's interest in such Note, except as provided in Section 2.12.  Unless and
until definitive, fully registered Notes (the "Definitive Notes") have been
issued to Note Owners pursuant to Section 2.12:

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

          (ii)   the Note Registrar and the Indenture Trustee shall be entitled
     to deal with the Clearing Agency for all purposes of this Indenture
     (including the payment of principal of and interest on the 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;

          (iv)   the rights of Note Owners shall be exercised only through the
     Clearing Agency and shall be limited to those established by law and
     agreements between such Note Owners and the Clearing Agency and/or the
     Clearing Agency Participants. Pursuant to the Note Depository Agreement,
     unless and until Definitive Notes are issued pursuant to Section 2.12, the
     initial Clearing

                                       13
<PAGE>

     Agency will make book-entry transfers among the Clearing Agency
     Participants and receive and transmit payments of principal of and interest
     on the Notes to such Clearing Agency Participants;

          (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 Clearing
     Agency shall be deemed to represent such percentage only to the extent that
     it has received instructions to such effect from Note Owners and/or
     Clearing Agency Participants owning or representing, respectively, such
     required percentage of the beneficial interest in the Notes and has
     delivered such instructions to the Indenture Trustee; and

          (vi)  Note Owners may receive copies of any reports sent to
     Noteholders pursuant to this Indenture, upon written request, together with
     a certification that they are Note Owners and payment of reproduction and
     postage expenses associated with the distribution of such reports, from the
     Indenture Trustee at the Corporate Trust Office.

     SECTION 2.11.  Notices to Clearing Agency.  Whenever a notice or other
                    --------------------------
communication to the Noteholders is required under this Indenture, until
Definitive Notes shall have been issued to Note Owners pursuant to Section 2.12,
the Indenture Trustee shall give all such notices and communications specified
herein to be given to Holders of the Notes to the Clearing Agency, and shall
have no obligation to the Note Owners.

     SECTION 2.12.  Definitive Notes. If (i) the Servicer advises the Indenture
                    ----------------
Trustee in writing that the Clearing Agency is no longer willing or able to
properly discharge its responsibilities with respect to the Notes, and the
Servicer is unable to locate a qualified successor, (ii) the Servicer at its
option advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency or (iii) after the occurrence of
an Event of Default, Note Owners representing beneficial interests aggregating
at least a majority of the Outstanding Amount of the Notes advise the Indenture
Trustee through the Clearing Agency in writing that the continuation of a book
entry system through the Clearing Agency is no longer in the best interests of
the Note Owners, then the Clearing Agency shall notify all Note Owners and the
Indenture 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
Indenture Trustee of the typewritten Note or Notes representing the Book-Entry
Notes by the Clearing Agency, accompanied by registration instructions, the
Issuer shall execute and the Indenture Trustee shall authenticate the Definitive
Notes in accordance with the instructions of the Clearing Agency. None of the
Issuer, the Note Registrar or the Indenture Trustee shall be liable for any
delay in delivery of such instructions and may conclusively rely on, and shall
be protected in relying on, such instructions. Upon the issuance of Definitive
Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes
as Noteholders.

                                  ARTICLE III.

                                   Covenants
                                   ---------

     SECTION 3.1.   Payment of Principal and Interest.  The Issuer will duly and
                    ---------------------------------
punctually pay the principal of and interest on the Notes in accordance with the
terms of the Notes and this Indenture. Without limiting the foregoing, subject
to Section 8.2(c), the Issuer will cause to be distributed all amounts on
deposit in the Note Distribution Account on each Payment Date deposited therein,
pursuant to the Sale and Servicing Agreement (i) for the benefit of the Class A-
1 Notes, to Class A-1 Noteholders, (ii) for the benefit of the Class A-2 Notes,
to Class A-2 Noteholders, (iii) for the benefit of the Class A-3 Notes, to Class
A-3 Noteholders and (iv) for the benefit of the Class A-4 Notes, to the Class A-
4 Noteholders. 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.

                                       14
<PAGE>

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

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

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

     The Issuer will cause each Paying Agent other than the Indenture Trustee to
execute and deliver to the Indenture Trustee and the Insurer an instrument in
which such Paying Agent shall agree with the Indenture Trustee (and if the
Indenture Trustee 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 Indenture Trustee notice of any default by the Issuer
     of which it has actual knowledge (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 Indenture Trustee, forthwith pay to the
     Indenture Trustee all sums so held in trust by such Paying Agent;

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

                                       15
<PAGE>

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

     Subject to applicable laws with respect to the escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two (2)
years after such amount has become due and payable shall be discharged from such
trust and be paid to the Issuer on Issuer Request and with the consent of the
Insurer (unless an Insurer Default shall have occurred and be continuing), and
the Holder of such Note shall thereafter, as an unsecured general creditor, look
only to the Issuer for payment thereof (but only to the extent of the amounts so
paid to the Issuer), and all liability of the Indenture Trustee or such Paying
Agent with respect to such trust money shall thereupon cease; provided, however,
that if such money or any portion thereof had been previously deposited by the
Insurer or Indenture Trustee for the payment of principal or interest on the
Notes, to the extent any amounts are owing to the Insurer, such amounts shall be
paid promptly to the Insurer upon receipt of a written request by the Insurer to
such effect, and provided, further, that the Indenture Trustee or such Paying
Agent, before being required to make any such repayment, shall 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 The City of New York, 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 unclaimed balance of such money then remaining
will be repaid to the Issuer. The Indenture Trustee shall 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 Indenture Trustee or of any
Paying Agent, at the last address of record for each such Holder).

     SECTION 3.4. Existence.  Except as otherwise permitted by the provisions
                  ---------
of Section 3.10, the Issuer will keep in full effect its existence, rights and
franchises as a business trust under the laws of the State of Delaware (unless
it becomes, or any successor Issuer hereunder is or becomes, organized under the
laws of any other State or of the United States of America, in which case the
Issuer 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 Collateral and each other instrument or agreement included in the
Trust Fund.

     SECTION 3.5. Protection of Trust Fund.  The Issuer intends the security
                  ------------------------
interest Granted pursuant to this Indenture in favor of the Issuer Secured
Parties to be prior to all other liens in respect of the Trust Fund, and the
Issuer shall take all actions necessary to obtain and maintain, in favor of the
Indenture Trustee, for the benefit of the Issuer Secured Parties, a first lien
on and a first priority, perfected security interest in the Trust Fund.  The
Issuer will from time to time prepare (or shall cause to be prepared), execute
and deliver all such supplements and amendments hereto and all such financing
statements, continuation statements, instruments of further assurance and other
instruments, and will take such other action necessary or advisable to:

                  (i)   Grant more effectively all or any portion of the Trust
     Fund;

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

                                       16
<PAGE>

                  (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 Collateral;

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

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

The Issuer hereby designates the Indenture Trustee its agent and attorney-in-
fact to execute any such financing statement, continuation statement or other
instrument delivered by or on behalf of the Issuer to the Indenture Trustee for
execution. The Indenture Trustee shall not have any liability for the perfection
or priority of the security interest granted hereby and shall have no duty to
prepare or file any continuation statements or other related instruments.

     SECTION 3.6. Opinions as to Trust Fund.
                  -------------------------

          (a) On the Closing Date, the Issuer shall furnish to the Indenture
Trustee and the Insurer 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 Indenture Trustee, for the benefit of the Issuer Secured Parties,
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) Within 120 days after the beginning of each calendar year,
beginning with the first calendar year beginning more than three months after
the Closing Date, the Issuer shall furnish to the Indenture Trustee and the
Insurer an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the recording, filing, re-
recording and refiling of this Indenture, any indentures supplemental hereto and
any other requisite documents and with respect to the execution and filing of
any financing statements and continuation statements as are necessary to
maintain the lien and security interest created by this Indenture and reciting
the details of such action or stating that in the opinion of such counsel no
such action is necessary to maintain such lien and security interest. Such
Opinion of Counsel shall also describe the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until January 30 in
the following calendar year.

     SECTION 3.7. Performance of Obligations; Servicing of Receivables.
                  ----------------------------------------------------

          (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 Fund 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
ordered by any bankruptcy or other court or as expressly provided in this
Indenture, the Basic Documents or such other instrument or agreement.

                                       17
<PAGE>

     (b)  The Issuer may contract with other Persons acceptable to the Insurer
(so long as no Insurer Default shall have occurred and be continuing) to assist
it in performing its duties under this Indenture, and any performance of such
duties by a Person identified to the Indenture Trustee and the Insurer 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 Basic Documents and in the
instruments and agreements included in the Trust Fund, including but not limited
to preparing (or causing to be prepared) and 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 Sale and Servicing Agreement in accordance with
and within the time periods provided for herein and therein. Except as otherwise
expressly provided therein, the Issuer shall not waive, amend, modify,
supplement or terminate any Basic Document or any provision thereof without the
consent of the Indenture Trustee (given at the direction of the Controlling
Party) or the Controlling Party.

     (d)  If an officer of the Owner Trustee shall have actual knowledge of the
occurrence of a Servicer Default under the Sale and Servicing Agreement, the
Issuer shall promptly notify the Indenture Trustee, the Insurer and the Rating
Agencies thereof in accordance with Section 11.4, and shall specify in such
notice the action, if any, the Issuer is taking in respect of such default. If a
Servicer Default shall arise from the failure of the Servicer to perform any of
its duties or obligations under the Sale and Servicing Agreement with respect to
the Receivables, the Issuer shall take all reasonable steps available to it to
remedy such failure.

     (e)  If an Insurer Default shall have occurred and be continuing and if the
Issuer has given notice of termination to the Servicer of the Servicer's rights
and powers pursuant to Section 8.1 of the Sale and Servicing Agreement, as
promptly as possible thereafter, the Issuer shall appoint a Successor Servicer
in accordance with Section 8.2 of the Sale and Servicing Agreement.

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

     (g)  The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Seller of their respective duties under the
Basic Documents (x) without the prior consent of the Insurer (unless an Insurer
Default shall have occurred and be continuing) or (y) if the effect thereof
would adversely affect the Holders of the Notes.

     (h)  Without derogating from the absolute nature of the assignment granted
to the Indenture Trustee under this Indenture or the rights of the Indenture
Trustee hereunder, the Issuer agrees that, unless such action is specifically
permitted hereunder or under the other Basic Documents, it will not, without the
prior written consent of the Indenture Trustee (to be given at the direction of
the Controlling Party) amend, modify, waive, supplement, terminate or surrender,
or agree to any amendment, modification, supplement, termination, waiver or
surrender of, the terms of any Collateral or the Basic Documents, or waive
timely performance or observance by the Servicer or the Seller under the Sale
and Servicing Agreement; provided that no such amendment shall (i) increase or
                         --------
reduce in any manner the amount of, or accelerate or delay the timing of,
distributions that are required to be made for the benefit of the  Noteholders,
or (ii) reduce the aforesaid percentage of the Notes which are required to
consent to any such amendment, without the consent of the Holders of all the
Outstanding Notes.  If any such amendment, modification, supplement or waiver
shall be so consented to by the Indenture Trustee or such Controlling Party, the
Issuer agrees, promptly following a request by the Indenture Trustee to do so,
to execute and deliver, in its own name and at its own expense, such

                                       18
<PAGE>

agreements, instruments, consents and other documents as the Indenture Trustee
may deem necessary or appropriate under the circumstances.

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

                   (i)    except as expressly permitted by this Indenture or the
     Basic Documents, sell, transfer, exchange or otherwise dispose of any of
     the properties or assets of the Issuer, including those included in the
     Trust Fund, unless directed to do so by the Controlling Party;

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

                   (iii)  (A) permit the validity or effectiveness of this
     Indenture to be impaired, or permit the lien in favor of the Indenture
     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, (B) permit any lien,
     charge, excise, claim, security interest, mortgage or other encumbrance
     (other than the lien of this Indenture) to be created on or extend to or
     otherwise arise upon or burden the Trust Fund 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 a
     Financed Vehicle and arising solely as a result of an action or omission of
     the related Obligor), (C) permit the lien of this Indenture not to
     constitute a valid first priority (other than with respect to any such tax,
     mechanics' or other lien) security interest in the Trust Fund or (D) amend,
     modify or fail to comply with the provisions of the Basic Documents without
     the prior written consent of the Controlling Party.

                   (iv)   take any action or fail to take any action that would
     cause the Issuer to be treated as an association (or publicly traded
     partnership) taxable as a corporation for U.S. Federal income tax purposes.

     SECTION 3.9.   Annual Statement as to Compliance.  The Issuer will deliver
                    ---------------------------------
to the Indenture Trustee and the Insurer, within 120 days after the end of each
fiscal year of the Issuer (commencing with the fiscal year ended December 31,
2000) and otherwise in compliance with the requirements of TIA Section
314(a)(4), 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, Etc. Only on Certain Terms.
                   --------------------------------------------------

          (a) The Issuer shall not consolidate or merge with or into any other
     Person, unless

                   (i)    the Person (if other than the Issuer) formed by or
     surviving such consolidation or merger shall be a Person organized and
     existing under the laws of the United States

                                       19
<PAGE>

     of America or any state and shall expressly assume, by an indenture
     supplemental hereto, executed and delivered to the Indenture Trustee, in
     form satisfactory to the Indenture Trustee and the Insurer (so long as no
     Insurer Default shall have occurred and be continuing), the due and
     punctual payment of the principal of and interest on all Notes and the
     performance or observance of every agreement and covenant of this Indenture
     on the part of the Issuer to be performed or observed, all as provided
     herein;

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

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

               (iv)  the Issuer shall have received an Opinion of Counsel (and
     shall have delivered copies thereof to the Indenture Trustee and the
     Insurer (so long as no Insurer Default shall have occurred or be
     continuing)) to the effect that such transaction will not have any material
     adverse tax consequence to the Trust, the Insurer or any Noteholder or any
     Certificateholder;

               (v)   all actions necessary to maintain the lien and security
     interest created by this Indenture shall have been taken;

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

               (vii) so long as no Insurer Default shall have occurred and be
     continuing, the Issuer shall have given the Insurer written notice of such
     consolidation or merger at least 20 Business Days prior to the consummation
     of such action and shall have received the prior written approval of the
     Insurer of such consolidation or merger and 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 Fund, to any
Person, unless

               (i)   the Person that acquires by conveyance or transfer the
     properties and assets of the Issuer the conveyance or transfer of which is
     hereby restricted shall (A) be a United States citizen or a Person
     organized and existing under the laws of the United States of America or
     any state, (B) expressly assume, by an indenture supplemental hereto,
     executed and delivered to the Indenture Trustee, in form satisfactory to
     the Indenture Trustee and the Insurer (so long as no Insurer Default shall
     have occurred and be continuing), 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 of the Basic
     Documents on the part of the Issuer to be performed or observed, all as
     provided 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 prepare (or cause to be prepared) and

                                       20
<PAGE>

     make all filings with the Commission (and any other appropriate Person)
     required by the Exchange Act in connection with the Notes;

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

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

                    (iv)  the Issuer shall have received an Opinion of Counsel
     (and shall have delivered copies thereof to the Indenture Trustee and the
     Insurer (so long as no Insurer Default shall have occurred and be
     continuing)) to the effect that such transaction will not have any material
     adverse tax consequence to the Trust, the Insurer or any Noteholder or any
     Certificateholder;

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

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

                    (vii) so long as no Insurer Default shall have occurred and
     be continuing, the Issuer shall have given the Insurer written notice of
     such conveyance or transfer at least 20 Business Days prior to the
     consummation of such action and shall have received the prior written
     approval of the Insurer of such consolidation or merger and 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.

     SECTION 3.11.  Successor or Transferee.
                    -----------------------

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

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.10(b), the Issuer 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 Indenture Trustee stating that the Trust 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
Receivables in the manner contemplated by this Indenture and the Basic Documents
and activities incidental thereto.

     SECTION 3.13.  No Borrowing.  The Issuer shall not issue, incur, assume,
                    ------------
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes and (ii) obligations owing from time to
time to the Insurer under the Insurance Agreement and (iii) any other
Indebtedness permitted by or arising under the Basic Documents or the Issuer's
compliance therewith.  The proceeds of the Notes shall be

                                       21
<PAGE>

used exclusively to fund the Issuer's purchase of the Receivables and the other
assets specified in the Sale and Servicing Agreement and to fund the Reserve
Account and to pay the Issuer's organizational, transactional and start-up
expenses.

     SECTION 3.14.  Servicer's Obligations.  The Issuer shall cause the Servicer
                    ----------------------
to comply with the Sale and Servicing Agreement.

     SECTION 3.15.  Guarantees, Loans, Advances and Other Liabilities.  Except
                    -------------------------------------------------
as contemplated by the Sale 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 assuring another's
payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

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

     SECTION 3.17.  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
Basic Document.

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

     SECTION 3.19.  Notice of Events of Default.  Upon a responsible officer of
                    ---------------------------
the Owner Trustee having actual knowledge thereof, the Issuer agrees to give the
Indenture Trustee, the Insurer and the Rating Agencies prompt written notice of
each Event of Default hereunder and each default on the part of the Servicer or
the Seller of its obligations under the Sale and Servicing Agreement.

     SECTION 3.20.  Further Instruments and Acts.  Upon request of the Indenture
                    ----------------------------
Trustee or the Insurer, 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 3.21.  Amendments of Sale and Servicing Agreement and Trust
                    ----------------------------------------------------
Agreement.  The Issuer shall not agree to any amendment to Section 11.1 of the
---------
Sale and Servicing Agreement or Section 11.1 of the Trust Agreement to eliminate
the requirements thereunder that the Indenture Trustee, the Insurer or the
Holders of the Notes consent to amendments thereto as provided therein.

     SECTION 3.22.  Income Tax Characterization.  For purposes of federal
                    ---------------------------
income, state and local income and franchise and any other taxes, the Issuer
will treat the Notes as indebtedness.

                                       22
<PAGE>

                                  ARTICLE IV.

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

     SECTION 4.1.  Satisfaction and Discharge of Indenture.  This Indenture
                   ---------------------------------------
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8,
3.10, 3.12, 3.13, 3.20, 3.21 and 3.22, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee
under Section 4.2) and (vi) the rights of Noteholders as beneficiaries hereof
with respect to the property so deposited with the Indenture Trustee payable to
all or any of them, and the Indenture Trustee, on demand of and at the expense
of the Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes, when

     (A)  either

     (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 2.5 and (ii) Notes for whose
          payment money has theretofore been deposited in trust or segregated
          and held in trust by the Issuer and thereafter repaid to the Issuer or
          discharged from such trust, as provided in Section 3.3) have been
          delivered to the Indenture Trustee for cancellation and the Policy has
          expired and been returned to the Insurer for cancellation; or

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

                   (i)   have become due and payable,

                   (ii)  will become due and payable at their respective Final
     Scheduled Payment Dates within one year, or

                   (iii) are to be called for redemption within one year under
     arrangements satisfactory to the Indenture Trustee for the giving of notice
     of redemption by the Indenture 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 Indenture Trustee
     cash or direct obligations of or obligations guaranteed by the United
     States of America (which will mature prior to the date such amounts are
     payable), in trust for such purpose, in an amount sufficient to pay and
     discharge the entire indebtedness on such Notes not theretofore delivered
     to the Indenture Trustee for cancellation when due to the Final Scheduled
     Payment Date or Redemption Date (if Notes shall have been called for
     redemption pursuant to Section 10.1(a)), as the case may be;

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

     (C)  the Issuer has delivered to the Indenture Trustee and the Insurer an
     Officer's Certificate, an Opinion of Counsel and, if required by the TIA,
     the Indenture Trustee or the Insurer (so long as an Insurer Default shall
     not have occurred and be continuing) an Independent Certificate from a firm
     of certified public accountants, each meeting the applicable requirements
     of Section 11.1(a) and each

                                       23
<PAGE>

     stating that all conditions precedent herein provided for relating to the
     satisfaction and discharge of this Indenture have been complied with.

     SECTION 4.2.  Application of Trust Money.  All moneys deposited with the
                   --------------------------
Indenture Trustee pursuant to Section 4.1 hereof 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
Indenture Trustee may determine, to the Holders of the particular Notes for the
payment or redemption of which such moneys have been deposited with the
Indenture 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 Sale and Servicing Agreement or required by
law.

     SECTION 4.3.  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 Indenture Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.3 and thereupon such Paying Agent shall be released from all
further liability with respect to such moneys.

                                  ARTICLE V.

                          EVENTS OF DEFAULT; REMEDIES
                          ---------------------------

     SECTION 5.1.  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 after receipt of notice thereof from the Indenture
     Trustee (solely for purposes of this clause, a payment on the Notes funded
     by the Insurer shall be deemed to be a payment made by the Issuer) and the
     Indenture Trustee shall provide such notice within two Business Days of
     such default; or

                    (ii)  default in the payment of the principal of or any
     installment of the principal of any Note when the same becomes due and
     payable (solely for purposes of this clause, a payment on the Notes funded
     by the Insurer shall be deemed to be a payment made by the Issuer); or

                    (iii) so long as an Insurer Default shall not have occurred
     and be continuing, an Insurance Agreement Indenture Cross Default;
     provided, however, that the occurrence of an Insurance Agreement Indenture
     Cross Default may not form the basis of an Event of Default unless the
     Insurer shall, upon prior written notice to the Rating Agencies, have
     delivered (and not rescinded) to the Issuer and the Indenture Trustee a
     written notice specifying that such Insurance Agreement Indenture Cross
     Default constitutes an Event of Default under the Indenture; or

                    (iv)  so long as an Insurer Default shall have occurred and
     be continuing, default in the observance or performance 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

                                       24
<PAGE>

     cured, for a period of 30 days (or for such longer period, not in excess of
     90 days, as may be reasonably necessary to remedy such default; provided
     that such default is capable of remedy within 90 days or less and the
     Servicer on behalf of the Owner Trustee delivers an Officer's Certificate
     to the Indenture Trustee to the effect that the Issuer has commenced, or
     will promptly commence and diligently pursue, all reasonable efforts to
     remedy such default) after there shall have been given, by registered or
     certified mail, to the Issuer by the Indenture Trustee or to the Issuer and
     the Indenture Trustee by the 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

               (v)  so long as an Insurer Default shall have occurred and be
     continuing, the filing of a decree or order for relief by a court having
     jurisdiction in the premises in respect of the Issuer or any substantial
     part of the Trust Fund in an involuntary case under any applicable Federal
     or state bankruptcy, insolvency or other similar law now or hereafter in
     effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
     sequestrator or similar official of the Seller, the Transferor or the
     Issuer or for any substantial part of the Trust Fund, or ordering the
     winding-up or liquidation of the Seller's, the Transferor's or the Issuer's
     affairs, and such decree or order shall remain unstayed and in effect for a
     period of 60 consecutive days; or

               (vi) so long as an Insurer Default shall have occurred and be
     continuing, the commencement by the Issuer of a voluntary case under any
     applicable Federal or state bankruptcy, insolvency or other similar law now
     or hereafter in effect, or the consent by the Issuer to the entry of an
     order for relief in an involuntary case under any such law, or the consent
     by the Issuer to the appointment or taking possession by a receiver,
     liquidator, assignee, custodian, trustee, sequestrator or similar official
     of the Seller, the Transferor or the Issuer or for any substantial part of
     the Trust Fund, or the making by the Seller, the Transferor or the Issuer
     of any general assignment for the benefit of creditors, or the failure by
     the Seller, the Transferor or the Issuer generally to pay its debts as such
     debts become due, or the taking of action by the Issuer in furtherance of
     any of the foregoing.

     The Issuer shall deliver to the Indenture Trustee and the Insurer, within
five days after the occurrence thereof, written notice in the form of an
Officer's Certificate of any event which with the giving of notice and the lapse
of time would become an Event of Default under clause (iii), its status and what
action the Issuer is taking or proposes to take with respect thereto.

     SECTION 5.2.   Rights Upon Event of Default.
                    ----------------------------

         (a) If an Event of Default shall have occurred and be continuing, the
Controlling Party may exercise any of the remedies specified in Section 5.4(a).
In the event of any acceleration of any Notes by operation of this Section 5.2,
the Indenture Trustee shall continue to be entitled to make claims under the
Policy pursuant to Section 5.18 hereof for Scheduled Payments on the Notes.
Payments under the Policy following acceleration of any Notes shall be applied
by the Indenture Trustee:

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

         SECOND: to Noteholders for amounts due and unpaid on the Notes for
     principal, ratably, without preference or priority of any kind, according
     to the amounts due and payable on the Notes for principal.

                                       25
<PAGE>

          (b)  In the event any Notes are accelerated due to an Event of
Default, the Insurer shall have the right (in addition to its obligation to pay
Scheduled Payments on the Notes in accordance with the Policy), but not the
obligation, to make payments under the Policy or otherwise of interest and
principal due on such Notes, in whole or in part, on any date or dates following
such acceleration as the Insurer, in its sole discretion, shall elect.

          (c)  If an Insurer Default shall have occurred and be continuing and
an Event of Default shall have occurred and be continuing, the Indenture Trustee
in its discretion may, or if so requested in writing by a Note Majority, 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.

          (d)  If an Insurer Default shall have occurred and be continuing, then
at any time after such declaration of acceleration of maturity has been made and
before a judgment or decree for payment of the money due has been obtained by
the Indenture Trustee as hereinafter in this Article V provided, a Note
Majority, by written notice to the Issuer and the Indenture Trustee, may rescind
and annul such declaration and its consequences if:

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

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

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

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

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

     SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by
                  -------------------------------------------------------
Indenture Trustee.
-----------------

          (a)  The Issuer covenants that if (i) default is made in the payment
of any interest on any Note when the same becomes due and payable, and such
default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note when
the same becomes due and payable, the Issuer will, upon demand of the Indenture
Trustee, pay to it, for the benefit of the Holders of the 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 Indenture
Trustee and its agents and counsel.

          (b)  Each Issuer Secured Party hereby irrevocably and unconditionally
appoints the Controlling Party as the true and lawful attorney-in-fact of such
Issuer Secured Party for so long as such Issuer Secured Party is not the
Controlling Party, with full power of substitution, to execute, acknowledge and
deliver any notice, document, certificate, paper, pleading or instrument and to
do in the name of the Controlling Party as well as in the name, place and stead
of such Issuer Secured Party such acts, things and deeds for or on behalf

                                       26
<PAGE>

of and in the name of such Issuer Secured Party under this Indenture (including
specifically under Section 5.4) and under the Basic Documents which such Issuer
Secured Party could or might do or which may be necessary, desirable or
convenient in such Controlling Party's sole discretion to effect the purposes
contemplated hereunder and under the Related Documents and, without limitation,
following the occurrence of an Event of Default, exercise full right, power and
authority to take, or defer from taking, any and all acts with respect to the
administration, maintenance or disposition of the Trust Fund.

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

          (d)  Notwithstanding anything to the contrary contained in this
Indenture (including without limitation Sections 5.4(a), 5.12, 5.13 and 5.17)
and regardless of whether an Insurer Default shall have occurred and be
continuing, if the Issuer fails to perform its obligations under Section 10.1
hereof when and as due, the Indenture Trustee may in its discretion (and without
the consent of the Controlling Party) proceed to protect and enforce its rights
and the rights of the Noteholders by such appropriate proceedings as the
Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for specific performance of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy or legal or equitable right vested in the Indenture
Trustee by this Indenture or by law; provided that the Indenture Trustee shall
only be entitled to take any such actions without the consent of the Controlling
Party to the extent such actions are taken only to enforce the Issuer's
obligations to redeem the principal amount of Notes and pay interest thereon at
the applicable Interest Rate and are taken only against the portion of the
Collateral, if any, consisting of any investments therein and any proceeds
thereof.

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

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

                                       27
<PAGE>

                    (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 Indenture
     Trustee on their behalf; and

                    (iv)  to file such proofs of claim and other papers or
     documents as may be necessary or advisable in order to have the claims of
     the Indenture Trustee or the 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 Indenture Trustee, and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence or bad faith.

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

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

          (h)  In any proceedings brought by the Indenture Trustee (and also any
proceedings involving the interpretation of any provision of this Indenture),
the Indenture 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 5.4.  Remedies.
                   --------

          (a)  If an Event of Default shall have occurred and be continuing, the
Controlling Party may do one or more of the following (subject to Section 5.5):

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

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

                                       28
<PAGE>

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

                   (iv)  direct the Indenture Trustee to sell the Trust Fund 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 Indenture Trustee, or, if the Insurer is the
     --------  -------
     Controlling Party, the Insurer, may not sell or otherwise liquidate the
     Trust Fund following an Insurance Agreement Indenture Cross Default unless:

                         (I)   such Insurance Agreement Indenture Cross Default
                   arises from a claim being made on the Policy or from the
                   insolvency of the Trust, or

                         (II)  the proceeds of such sale or liquidation
                   distributable to the Noteholders are sufficient to discharge
                   in full all amounts then due and unpaid upon such Notes for
                   principal and interest; or

if the Indenture Trustee is the Controlling Party, the Indenture Trustee may not
sell or otherwise liquidate the Trust Fund following an Event of Default unless

                               either

                               (x)  the Holders of 100% of the Outstanding
                      Amount of the Notes consents thereto, or

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

                               (z)  the Indenture Trustee determines that the
                      Trust Fund 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 Indenture Trustee
                      provides notice to the Rating Agencies and obtains the
                      consent of Holders of 66-2/3% of the Outstanding Amount of
                      the Notes.

     In determining such sufficiency or insufficiency with respect to clause (y)
and (z), the Indenture Trustee may, but need not, obtain and rely upon an
opinion of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Fund for such purpose.

     SECTION 5.5.  Optional Preservation of the Trust Fund.  If the Indenture
                   ---------------------------------------
Trustee is the Controlling Party and if the Notes have been declared to be due
and payable under Section 5.2 following an Event of Default and such declaration
and its consequences have not been rescinded and annulled, the Indenture Trustee
may, but need not, elect to maintain possession of the Trust Fund.  It is the
desire of the parties hereto and the Noteholders that there be at all times
sufficient funds for the payment of principal of and interest on the Notes, and
the Indenture Trustee shall take such desire into account when determining
whether or not to maintain possession of the Trust Fund.  In determining whether
to maintain possession of the Trust Fund, the Indenture Trustee may, but need
not, obtain and rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Fund for such purpose.

                                       29
<PAGE>

     SECTION 5.6.  Priorities.
                   ----------

          (a)  Following (1) the acceleration of the Notes pursuant to Section
5.2 or (2) if an Insurer Default shall have occurred and be continuing, the
occurrence of an Event of Default pursuant to Section 5.1(i), 5.1(ii), 5.1(iii),
5.1(v) or 5.1(vi), the Distribution Amount, including any money or property
collected pursuant to this Article V, shall be applied by the Indenture Trustee
in the following order of priority:

                   (i)   FIRST: amounts due and owing and required to be
     distributed to the Servicer, the Backup Servicer and the Indenture Trustee,
     respectively, pursuant to priorities (i) and (ii) of Section 5.6(a) of the
     Sale and Servicing Agreement and not previously distributed, in the order
     of such priorities and without preference or priority of any kind within
     such priorities;

                   (ii)  SECOND: to Noteholders for amounts due and unpaid on
     the Notes for interest, ratably, without preference or priority of any
     kind, according to the amounts due and payable on the Notes for interest;

                   (iii) THIRD: to Noteholders for amounts due and unpaid on the
     Notes for principal, ratably, (a) to the Class A-1 Noteholders, (b) to the
     Class A-2 Noteholders, (c) to the Class A-3 Noteholders and (d) to the
     Class A-4 Noteholders, according to the amounts due and payable on the
     Notes for principal;

                   (iv)  FOURTH: amounts due and owing and required to be
     distributed to the Insurer pursuant to priority (v) of Section 5.6(a) of
     the Sale and Servicing Agreement and not previously distributed; and

                   (v)   FIFTH: all remaining amounts to the Owner Trustee for
     distribution to Certificateholders in accordance with Section 5.2(c) of the
     Trust Agreement;

                   (vi)  SIXTH: to or upon the order of the Transferor.

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

     SECTION 5.7.  Limitation of Suits.  Neither the Insurer, nor any 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)   the Insurer or such Holder has previously given written
     notice to the Indenture Trustee of a continuing Event of Default;

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

                   (iii) the Insurer or such Holder or Holders have offered and
     provided to the Indenture Trustee indemnity reasonably satisfactory to it
     against the costs, expenses and liabilities to be incurred in complying
     with such request;

                                       30
<PAGE>

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

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

                   (vi) with respect to such Holder, an Insurer Default shall
     have occurred and be continuing;

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 Indenture 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 Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture.

     SECTION 5.8.  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, if any, 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 5.9.  Restoration of Rights and Remedies. If the Controlling Party
                   ----------------------------------
or any Noteholder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Issuer, the Indenture Trustee and
the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such proceeding had been instituted.

     SECTION 5.10. Rights and Remedies Cumulative. No right or remedy herein
                   ------------------------------
conferred upon or reserved to the Controlling Party 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
                   ------------------------------
Controlling Party 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 Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

     SECTION 5.12. Control by Noteholders.  Following the occurrence and
                   ----------------------
continuation of an Insurer Default, the Holders of a majority of the Outstanding
Amount of the Notes shall have the right to direct the

                                       31
<PAGE>

time, method and place of conducting any proceeding for any remedy available to
the Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided that:

                    (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 5.4, any
     direction to the Indenture Trustee to sell or liquidate the Trust Fund
     shall be by the Holders of Notes representing not less than 100% of the
     Outstanding Amount of the Notes;

                    (iii) if the conditions set forth in Section 5.5 have been
     satisfied and the Indenture Trustee elects to retain the Trust Fund
     pursuant to such Section, then any direction to the Indenture Trustee by
     Holders of Notes representing less than 100% of the Outstanding Amount of
     the Notes to sell or liquidate the Trust Fund shall be of no force and
     effect; and

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

provided, however, that, subject to Section 6.1, the Indenture 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.  If an Insurer Default shall have
                    -----------------------
occurred and be continuing prior to the declaration of the acceleration of the
maturity of the Notes as provided in Section 5.2, a Note Majority 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 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 Indenture 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 Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
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

                                       32
<PAGE>

benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance of
this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

     SECTION 5.16.  Action on Notes.  The Indenture Trustee's right to seek and
                    ---------------
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture.  Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the
levy of any execution under such judgment upon any portion of the Trust Fund or
upon any of the assets of the Issuer.

     SECTION 5.17.  Performance and Enforcement of Certain Obligations.
                    --------------------------------------------------

          (a) Promptly following a request from the Indenture Trustee to do so
and at the Servicer's expense, the Issuer agrees to take all such lawful action
as the Indenture Trustee may request to compel or secure the performance and
observance by the Seller, the Transferor and the Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Sale 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 Sale and Servicing Agreement to the extent and
in the manner directed by the Indenture Trustee, including the transmission of
notices of default on the part of the Seller, the Transferor or the Servicer
thereunder and the institution of legal or administrative actions or proceedings
to compel or secure performance by the Seller or the Servicer of each of their
obligations under the Sale and Servicing Agreement.

          (b) If the Indenture Trustee is a Controlling Party and if an Event of
Default has occurred and is continuing, the Indenture Trustee may, and, at the
direction (which direction shall be in writing) of the Holders of at least 66-
2/3% of the Outstanding Amount of the Notes and upon receipt of indemnity
reasonably satisfactory to the Indenture Trustee shall, exercise all rights,
remedies, powers, privileges and claims of the Issuer against the Seller, the
Transferor or the Servicer under or in connection with the Sale and Servicing
Agreement, including the right or power to take any action to compel or secure
performance or observance by the Seller, the Transferor 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 Sale and Servicing
Agreement, and any right of the Issuer to take such action shall be suspended.

     SECTION 5.18.  Claims Under Policy.
                    -------------------

          (a) In the event that the Indenture Trustee has delivered a Deficiency
Notice with respect to any Determination Date pursuant to Section 5.4 of the
Sale and Servicing Agreement, the Indenture Trustee shall on the related
Deficiency Claim Date determine the Policy Claim Amount for the related Payment
Date. If the Policy Claim Amount for such Payment Date is greater than zero, the
Indenture Trustee shall furnish to the Insurer no later than 12:00 noon New York
City time on the related Deficiency Claim Date a completed Notice of Claim in
the amount of the Policy Claim Amount. Amounts paid by the Insurer pursuant to a
claim submitted under this Section 5.18(a) shall be deposited by the Indenture
Trustee into the Note Distribution Account for payment to Noteholders on the
related Payment Date.

          (b) Any notice delivered by the Indenture Trustee to the Insurer
pursuant to subsection 5.18(a) shall specify the Policy Claim Amount claimed
under the Policy and shall constitute a "Notice of Claim" under the Policy. In
accordance with the provisions of the Policy, the Insurer is required to pay to
the Indenture Trustee the Policy Claim Amount properly claimed thereunder by
12:00 noon, New York City time,

                                       33
<PAGE>

on the later of (i) the third Business Day following the Business Day on which
the Notice of Claim was received, and (ii) the applicable Payment Date. Any
payment made by the Insurer under the Policy shall be applied solely to the
payment of the Notes, and for no other purpose.

          (c) The Indenture Trustee shall (i) receive as attorney-in-fact of
each Noteholder any Policy Claim Amount from the Insurer and (ii) deposit the
same in the Note Distribution Account for distribution to Noteholders as
provided in Section 3.1 or Section 5.2 of this Indenture. Any and all Policy
Claim Amounts disbursed by the Indenture Trustee from claims made under the
Policy shall not be considered payment by the Issuer with respect to such Notes,
and shall not discharge the obligations of the Issuer with respect thereto. The
Insurer shall, to the extent it makes any payment with respect to the Notes,
become subrogated to the rights of the recipients of such payments to the extent
of such payments. Subject to and conditioned upon any payment with respect to
the Notes by or on behalf of the Insurer, the Indenture Trustee shall assign to
the Insurer all rights to the payment of interest or principal with respect to
the Notes which are then due for payment to the extent of all payments made by
the Insurer, and the Insurer may exercise any option, vote, right, power or the
like with respect to the Notes to the extent that it has made payment pursuant
to the Policy. To evidence such subrogation, the Note Registrar shall note the
Insurer's rights as subrogee upon the register of Noteholders upon receipt from
the Insurer of proof of payment by the Insurer of any Noteholders' Interest
Distributable Amount or Noteholders' Principal Distributable Amount. The
foregoing subrogation shall in all cases be subject to the rights of the
Noteholders to receive all Scheduled Payment in respect of the Notes.

          (d) The Indenture Trustee shall keep a complete and accurate record of
all funds deposited by the Insurer into the Note Distribution Account and the
allocation of such funds to payment of interest on and principal paid in respect
of any Note. The Insurer shall have the right to inspect such records at
reasonable times upon one Business Day's prior notice to the Indenture Trustee.

          (e) The Indenture Trustee shall be entitled to enforce on behalf of
the Noteholders the obligations of the Insurer under the Policy. Notwithstanding
any other provision of this Agreement or any Basic Documents, the Noteholders
are not entitled to institute proceedings directly against the Insurer.

     SECTION 5.19.  Preference Claims.
                    -----------------

          (a) In the event that the Indenture Trustee has received a certified
copy of an order of the appropriate court that any Noteholders' Interest
Distributable Amount or Noteholders' Principal Distributable Amount paid on a
Note has been avoided in whole or in part as a preference payment under
applicable bankruptcy law, the Indenture Trustee shall so notify the Insurer,
shall comply with the provisions of the Policy to obtain payment by the Insurer
of such avoided payment, and shall, at the time it provides notice to the
Insurer, notify Holders of the Notes by mail that, in the event that any
Noteholder's payment is so recoverable, such Noteholder will be entitled to
payment pursuant to the terms of the Policy. The Indenture Trustee shall furnish
to the Insurer its records evidencing the payments of principal of and interest
on Notes, if any, which have been made by the Indenture Trustee and subsequently
recovered from Noteholders, and the dates on which such payments were made.
Pursuant to the terms of the Policy, the Insurer will make such payment on
behalf of the Noteholder to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy named in the Order (as defined in the Policy) and not to
the Indenture Trustee or any Noteholder directly (unless a Noteholder has
previously paid such payment to the receiver, conservator, debtor-in-possession
or trustee in bankruptcy, in which case the Insurer will make such payment to
the Indenture Trustee for distribution to such Noteholder upon proof of such
payment reasonably satisfactory to the Insurer).

          (b) The Indenture Trustee shall promptly notify the Insurer of any
proceeding or the institution of any action (of which the Indenture Trustee has
actual knowledge) seeking the avoidance as a preferential transfer under
applicable bankruptcy, insolvency, receivership, rehabilitation or similar law
(a "Preference Claim") of any distribution made with respect to the Notes. Each
Holder, by its purchase of Notes,

                                       34
<PAGE>

and the Indenture Trustee hereby agree that so long as an Insurer Default shall
not have occurred and be continuing, the Insurer may at any time during the
continuation of any proceeding relating to a Preference Claim direct all matters
relating to such Preference Claim including, without limitation, (i) the
direction of any appeal of any order relating to any Preference Claim and (ii)
the posting of any surety, supersedes or performance bond pending any such
appeal at the expense of the Insurer, but subject to reimbursement as provided
in the Insurance Agreement. In addition, and without limitation of the
foregoing, as set forth in Section 5.18(c), the Insurer shall be subrogated to,
and each Noteholder and the Indenture Trustee hereby delegate and assign, to the
fullest extent permitted by law, the rights of the Indenture Trustee and each
Noteholder in the conduct of any proceeding with respect to a Preference Claim,
including, without limitation, all rights of any party to an adversary
proceeding action with respect to any court order issued in connection with any
such Preference Claim.

                                  ARTICLE VI.

                             The Indenture Trustee
                             ---------------------

     SECTION 6.1.   Duties of Indenture Trustee.
                    ---------------------------

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

          (b) Except during the continuance of an Event of Default of which a
Responsible Officer of the Indenture Trustee has actual knowledge:

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

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

          (c) The Indenture Trustee may not be relieved from liability for its
own grossly negligent action, its own grossly 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 Indenture Trustee shall not be liable for any error
     of judgment made in good faith by a Responsible Officer unless it is proved
     that the Indenture Trustee was grossly negligent in ascertaining the
     pertinent facts; and

                 (iii) the Indenture Trustee shall not be liable with respect to
     any action it takes or omits to take in good faith in accordance with a
     direction received by it pursuant to Section 5.12 or 5.17.

                                       35
<PAGE>

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

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

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

          (g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section, Section 6.2 and provisions
of the TIA.

          (h) The Indenture Trustee shall, upon reasonable prior notice to the
Indenture Trustee, permit any representative of the Insurer or the Noteholders,
during the Indenture Trustee's normal business hours, to examine all books of
account, records, reports and other papers of the Indenture Trustee relating to
the Notes, to make copies and extracts therefrom and to discuss the Indenture
Trustee's affairs and actions, as such affairs and actions relate to the
Indenture Trustee's duties with respect to the Notes, with the Indenture
Trustee's officers and employees responsible for carrying out the Indenture
Trustee's duties with respect to the Notes.

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

          (j) The Indenture Trustee shall, and hereby agrees that it will, hold
the Policy in trust, and will hold any proceeds of any claim on the Policy in
trust solely for the use and benefit of the Noteholders.

          (k) Without limiting the generality of this Section 6.1, the Indenture
Trustee shall have no duty unless specifically set forth in this Indenture or
the Basic Documents (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 Financed Vehicles, 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
Financed Vehicles or Obligors or to effect or maintain any such insurance, (iii)
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, (iv) to confirm or verify the contents of
any reports or certificates delivered to the Indenture Trustee pursuant to this
Indenture or the Sale and Servicing Agreement believed by the Indenture Trustee
to be genuine and to have been signed or presented by the proper party or
parties, or (v) to inspect the Financed Vehicles at any time or ascertain or
inquire as to the performance of observance of any of the Issuer's, the Seller's
or the Servicer's representations, warranties or covenants or the Servicer's
duties and obligations as Servicer and as custodian of the Receivable Files
under the Sale and Servicing Agreement.

     SECTION 6.2.   Rights of Indenture Trustee.
                    ---------------------------

          (a) The Indenture Trustee may rely on and shall be protected in acting
or refraining from acting upon any document believed by it to be genuine and to
have been signed or presented by the proper person. The Indenture Trustee need
not investigate any fact or matter stated in the document.

                                       36
<PAGE>

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

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

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

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

          (f) The Indenture Trustee shall be under no obligation to institute,
conduct or defend any litigation under this Indenture or in relation to this
Indenture or otherwise exercise any rights or powers vested in it by this
Indenture, at the request, order or direction of any of the Holders of Notes or
the Controlling Party pursuant to the provisions of this Indenture, unless such
Holders of Notes or the Controlling Party shall have offered and provided to the
Indenture Trustee security or indemnity reasonably satisfactory to the Indenture
Trustee against the costs, expenses and liabilities that may be incurred therein
or thereby; provided however, that the Indenture 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 reasonable care and skill.

          (g) The Indenture Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or document, and may conclusively rely on the correctness of any
statement made therein but the Indenture Trustee shall make such investigation
if requested in writing to do so by the Insurer (so long as no, if the Insurer
Default shall have occurred and be continuing) or (if an Insurer Default shall
have occurred and be continuing), the Controlling Party, or 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 Indenture 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 Indenture Trustee, not
reasonably assured to the Indenture Trustee by the security afforded to it by
the terms of this Indenture or the Sale and Servicing Agreement, the Indenture
Trustee may require indemnity reasonably satisfactory to the Indenture Trustee
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 Indenture Trustee, shall be reimbursed by the
Person making such request upon demand.

     SECTION 6.3.   Individual Rights of Indenture Trustee.  The Indenture
                    --------------------------------------
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee.  Any Paying Agent, Note
Registrar, co-registrar or co-paying agent may do the same with like rights.
However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

     SECTION 6.4.   Indenture Trustee's Disclaimer.  The Indenture Trustee shall
                    ------------------------------
not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Trust Fund or the Notes; the

                                       37
<PAGE>

Indenture Trustee shall not be accountable for the Issuer's use of the proceeds
from the Notes, and it shall not be responsible for any recitals or statement of
the Issuer in this Indenture or in any document issued in connection with the
sale of the Notes or in the Notes other than the Indenture Trustee's certificate
of authentication.

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

     SECTION 6.6.   Reports by Indenture Trustee to Holders.  Within the
                    ---------------------------------------
prescribed period for tax reporting purposes after the end of each calendar year
during the term of this Indenture, the Indenture Trustee shall deliver to each
Noteholder such information in its possession relating to the payments made by
the Indenture Trustee on the Notes as may be reasonably required to enable such
Holder to prepare its Federal and state income tax returns.

     SECTION 6.7.   Compensation and Indemnity.
                    --------------------------

          (a) Pursuant to Section 5.6(a) of the Sale and Servicing Agreement,
the Issuer shall, or shall cause the Servicer to, pay to the Indenture Trustee
from time to time compensation for its services and reimbursement for its
expenses in accordance with a separate agreement between the Servicer and the
Indenture Trustee. The Indenture Trustee's compensation shall not be limited by
any law on compensation of a trustee of an express trust. The Indenture Trustee
shall notify the Issuer and the Servicer promptly of any claim for which it may
seek indemnity. Failure by the Indenture Trustee to so notify the Issuer and the
Servicer shall not relieve the Issuer of its obligations hereunder or the
Servicer of its obligations under Article X of the Sale and Servicing Agreement.
The Issuer shall to the extent that funds are available therefore after payment
in full of the Notes or shall cause the Servicer to defend the claim, the
Indenture Trustee may have separate counsel and the Issuer shall to the extent
that funds are available therefor after payment in full of the Notes or shall
cause the Servicer to pay the fees and expenses of such counsel. Neither the
Issuer nor the Servicer need reimburse any expense or indemnify against any
loss, liability or expense incurred by the Indenture Trustee through the
Indenture Trustee's own willful misconduct, negligence or bad faith.

          (b) The payment obligations to the Indenture Trustee pursuant to this
Section shall survive the Termination Date and the discharge of this Indenture
subject to a satisfaction of the Rating Agency Condition.  When the Indenture
Trustee incurs expenses after the occurrence of a Default specified in Section
5.1(v) or (vi) 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 Basic
Documents, the Indenture Trustee agrees that the obligations of the Issuer (but
not the Servicer) to the Indenture Trustee hereunder and under the Basic
Documents shall be recourse to the Trust Fund only and specifically shall not be
recourse to the assets of the Seller, the Transferor, the Depositor, the Issuer
or any Noteholder or any Certificateholder.  In addition, the Indenture Trustee
agrees that its recourse to the Seller, the Transferor, the Depositor, the
Issuer, the Trust Fund and the Seller shall be limited to the right to receive
the distributions referred to in Section 5.6(a) of the Sale and Servicing
Agreement

     SECTION 6.8.   Replacement of Indenture Trustee.  (a)  The Indenture
                    --------------------------------
Trustee may resign at any time by so notifying the Issuer and the Insurer.  The
Controlling Party may remove the Indenture Trustee by so

                                       38
<PAGE>

notifying the Indenture Trustee and may appoint a successor Indenture Trustee.
The Issuer shall remove the Indenture Trustee, if:

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

          (ii)  a court having jurisdiction in the premises in respect of the
     Indenture 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 Indenture Trustee or for any
     substantial part of the Indenture Trustee's property, or ordering the
     winding-up or liquidation of the Indenture 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
     Indenture Trustee and such case is not dismissed within 60 days;

          (iv)  the Indenture 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 Indenture
     Trustee or for any substantial part of the Indenture 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; or

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

     If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Issuer
shall promptly appoint a successor Indenture Trustee, acceptable to the Insurer
in its sole discretion (so long as an Insurer Default shall not have occurred
and be continuing).  If the Issuer fails to appoint such a successor Indenture
Trustee, the Controlling Party may appoint a successor Indenture Trustee.

     A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, to the Issuer and to the Insurer
(so long as no Insurer Default shall have occurred and be continuing).
Thereupon the resignation or removal of the retiring Indenture Trustee shall
become effective, and the successor Indenture Trustee shall have all the rights,
powers and duties of the Indenture Trustee under this Indenture subject to
satisfaction of the Rating Agency Condition.  The successor Indenture Trustee
shall mail a notice of its succession to Noteholders.  The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

     If a successor Indenture Trustee does not take office within 60 days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Controlling Party may petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee.

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

     Any resignation or removal of the Indenture Trustee and appointment of a
successor Indenture Trustee pursuant to any of the provisions of this Section
shall not become effective until acceptance of appointment by

                                       39
<PAGE>

the successor Indenture Trustee pursuant to Section 6.8 and payment of all fees
and expenses owed to the outgoing Indenture Trustee.

     Notwithstanding the replacement of the Indenture Trustee pursuant to this
Section, the Issuer's and the Servicer's obligations under Section 6.7 shall
continue for the benefit of the retiring Indenture Trustee.

          (b) Every temporary or permanent successor Indenture Trustee appointed
hereunder shall execute, acknowledge and deliver to its predecessor and to the
Indenture Trustee, each Issuer Secured Party and the Issuer an instrument in
writing accepting such appointment hereunder and the relevant predecessor shall
execute, acknowledge and deliver such other documents and instruments as will
effectuate the delivery of all Indenture Collateral to the successor Collateral
Agent, whereupon such successor, without any further act, deed or conveyance,
shall become fully vested with all the estates, properties, rights, powers,
duties and obligations of its predecessor. Such predecessor shall, nevertheless,
on the written request of either Issuer Secured Party or the Issuer, execute and
deliver an instrument transferring to such successor all the estates,
properties, rights and powers of such predecessor hereunder. In the event that
any instrument in writing from the Issuer or an Issuer Secured Party is
reasonably required by a successor Indenture Trustee to more fully and certainly
vest in such successor the estates, properties, rights, powers, duties and
obligations vested or intended to be vested hereunder in the Indenture Trustee,
any and all such written instruments shall, at the request of the temporary or
permanent successor Indenture Trustee, be forthwith executed, acknowledged and
delivered by the Issuer. The designation of any successor Indenture Trustee and
the instrument or instruments removing any Indenture Trustee and appointing a
successor hereunder, together with all other instruments provided for herein,
shall be maintained with the records relating to the Collateral and, to the
extent required by applicable law, filed or recorded by the successor Indenture
Trustee in each place where such filing or recording is necessary to effect the
transfer of the Collateral to the successor Indenture Trustee or to protect or
continue the perfection of the security interests granted hereunder.

     SECTION 6.9.   Successor Indenture Trustee by Merger.  If the Indenture
                    -------------------------------------
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee and shall
provide written notice thereof to the Issuer, the Insurer, and each Rating
Agency provided, however that such corporation or banking association shall be
otherwise qualified and eligible under Section 6.11 hereto.

     In case at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; 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 Indenture Trustee shall have.

     SECTION 6.10.  Appointment of Co-Indenture Trustee or Separate Indenture
                    ---------------------------------------------------------
Trustee.
-------

          (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust may at the time be located, the Indenture Trustee
with the consent of the Insurer (so long as an Insurer Default shall not have
occurred and be continuing) 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 a 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,

                                       40
<PAGE>

rights and trusts as the Indenture Trustee may consider necessary or desirable.
No co-trustee or separate trustee hereunder shall be required to meet the terms
of eligibility as a successor trustee under Section 6.11 and no notice to
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.8 hereof.

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

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

               (ii)  no trustee hereunder shall be personally liable by reason
     of any act or omission of any other trustee hereunder, including acts or
     omissions of predecessor or successor trustees; and

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

          (c) Any notice, request or other writing given to the Indenture
Trustee shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this 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
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed with
the Indenture Trustee.

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

     SECTION 6.11.  Eligibility; Disqualification. The Indenture Trustee shall
                    -----------------------------
at all times satisfy the requirements of TIA Section 310(a). The Indenture
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 or its parent and
it or its parent shall have a long term debt rating of BBB- or better by the
Rating Agencies.  The Indenture Trustee shall provide copies of such reports to
the Insurer upon request.  The Indenture Trustee shall comply with TIA Section
310(b), including the optional provision permitted by the second sentence of TIA
Section 310(b)(9); provided, however, that there shall be excluded from the
operation of TIA Section 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 Section 310(b)(1) are met.

                                       41
<PAGE>

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

     SECTION 6.13.  Appointment and Powers. Subject to the terms and conditions
                    ----------------------
hereof, each of the Issuer Secured Parties hereby appoints Norwest Bank
Minnesota, National Association, in its capacity as Indenture Trustee, as the
collateral agent with respect to the Collateral, and Norwest Bank Minnesota,
National Association hereby accepts such appointment and agrees to act as
collateral agent with respect to the Collateral for the Issuer Secured Parties,
to maintain custody and possession of such Collateral (except as otherwise
provided hereunder) and to perform the other duties with respect to the
Collateral in accordance with the provisions of this Indenture. Each Issuer
Secured Party hereby authorizes the Indenture Trustee to take such action on its
behalf, and to exercise such rights, remedies, powers and privileges hereunder,
as the Controlling Party may direct and as are specifically authorized to be
exercised by the Indenture Trustee by the terms hereof, together with such
actions, rights, remedies, powers and privileges as are reasonably incidental
thereto. The Indenture Trustee shall act upon and in compliance with the written
instructions of the Controlling Party delivered pursuant to this Indenture
promptly following receipt of such written instructions; provided that the
Indenture Trustee shall not act in accordance with any instructions (i) which
are not authorized by, or in violation of the provisions of, this Indenture,
(ii) which are in violation of any applicable law, rule or regulation or (iii)
for which the Indenture Trustee has not received reasonable indemnity. Receipt
of such instructions shall not be a condition to the exercise by the Indenture
Trustee of its express duties hereunder, except where this Indenture provides
that the Indenture Trustee is permitted to act only following and in accordance
with such instructions.

     SECTION 6.14.  Performance of Duties. The Indenture Trustee shall have no
                    ---------------------
duties or responsibilities except those expressly set forth in this Indenture
and the other Basic Documents to which the Indenture Trustee is a party or as
directed by the Controlling Party in accordance with this Indenture. The
Indenture Trustee shall not be required to take any discretionary actions
hereunder except at the written direction and with the indemnification of the
Controlling Party. The Indenture Trustee shall, and hereby agrees that it will,
perform all of the duties and obligations required of it under the Sale and
Servicing Agreement.

     SECTION 6.15.  Limitation on Liability. Neither the Indenture Trustee nor
                    -----------------------
any of its directors, officers or employees shall be liable for any action taken
or omitted to be taken by it or them hereunder, or in connection herewith,
except that the Indenture Trustee shall be liable for its negligence, bad faith
or willful misconduct; nor shall the Indenture Trustee be responsible for the
validity, effectiveness, value, sufficiency or enforceability against the Issuer
of this Indenture or any of the Collateral (or any part thereof).
Notwithstanding any term or provision of this Indenture, the Indenture Trustee
shall incur no liability to the Issuer or the Issuer Secured Parties for any
action taken or omitted by the Indenture Trustee in connection with the
Collateral, except for the negligence, bad faith or willful misconduct on the
part of the Indenture Trustee, and, further, shall incur no liability to the
Issuer Secured Parties except for negligence, bad faith or willful misconduct in
carrying out its duties to the Issuer Secured Parties. Subject to Section 6.16,
the Indenture Trustee shall be protected and shall incur no liability to any
such party in relying upon the accuracy, acting in reliance upon the contents,
and assuming the genuineness of any notice, demand, certificate, signature,
instrument or other document reasonably believed by the Indenture Trustee to be
genuine and to have been duly executed by the appropriate signatory, and (absent
actual knowledge to the contrary) the Indenture Trustee shall not be required to
make any independent investigation with respect thereto. The Indenture Trustee
shall at all times be free independently to establish to its reasonable
satisfaction, but shall have no duty to independently verify, the existence or
nonexistence of facts that are a condition to the exercise or enforcement of any
right or remedy hereunder or under any of the Basic Documents. The Indenture
Trustee may consult with counsel, and shall not be liable for any action taken
or omitted to be taken by it hereunder in good faith and in accordance with

                                       42
<PAGE>

the written advice of such counsel. The Indenture Trustee shall not be under any
obligation to exercise any of the remedial rights or powers vested in it by this
Indenture or to follow any direction from the Controlling Party unless it shall
have received reasonable security or indemnity satisfactory to the Indenture
Trustee against the costs, expenses and liabilities which might be incurred by
it.

     SECTION 6.16.  Reliance Upon Documents. In the absence of negligence, bad
                    -----------------------
faith or willful misconduct on its part, the Indenture Trustee shall be entitled
to rely on any communication, instrument, paper or other document reasonably
believed by it to be genuine and correct and to have been signed or sent by the
proper Person or Persons and shall have no liability in acting, or omitting to
act, where such action or omission to act is in reasonable reliance upon any
statement or opinion contained in any such document or instrument.

     SECTION 6.17.  [RESERVED].

     SECTION 6.18.  [RESERVED].

     SECTION 6.19.  Representations and Warranties of the Indenture Trustee. The
                    -------------------------------------------------------
Indenture Trustee represents and warrants to the Issuer and to each Issuer
Secured Party as follows:

               (a) Due Organization. The Indenture Trustee is a national banking
                   ----------------
association, duly organized, validly existing and in good standing under the
laws of the United States and is duly authorized and licensed under applicable
law to conduct its business as presently conducted.

               (b) Corporate Power. The Indenture Trustee has all requisite
                   ---------------
right, power and authority to execute and deliver this Indenture and to perform
all of its duties as Indenture Trustee hereunder.

               (c) Due Authorization. The execution and delivery by the
                   -------------
Indenture Trustee of this Indenture and the other Basic Documents to which it is
a party, and the performance by the Indenture Trustee of its duties hereunder
and thereunder, have been duly authorized by all necessary organizational
proceedings and no further approvals or filings, including any governmental
approvals, are required for the valid execution and delivery by the Indenture
Trustee, or the performance by the Indenture Trustee, of this Indenture and such
other Basic Documents to which it is a party.

               (d) Valid and Binding Indenture. The Indenture Trustee has duly
                   ---------------------------
executed and delivered this Indenture and each other Basic Document to which it
is a party, and each of this Indenture and each such other Basic Document
constitutes the legal, valid and binding obligation of the Indenture Trustee,
enforceable against the Indenture Trustee in accordance with its terms, except
as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization and similar laws relating to or affecting the enforcement of
creditors' rights generally and (ii) the availability of equitable remedies may
be limited by equitable principles of general applicability.

     SECTION 6.20.  Waiver of Setoffs. The Indenture Trustee hereby expressly
                    -----------------
waives any and all rights of setoff that the Indenture Trustee may otherwise at
any time have under applicable law with respect to any Trust Account and agrees
that amounts in the Trust Accounts shall at all times be held and applied solely
in accordance with the provisions hereof.

     SECTION 6.21.  Control by the Controlling Party. The Indenture
      ----------------------------------------------
shall comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party, except that if any
Event of Default shall have occurred and be continuing, the Indenture Trustee
shall act upon and comply with notices and instructions given by the Controlling
Party alone in the place and stead of the Issuer.

                                       43
<PAGE>

                                 ARTICLE VII.

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

     SECTION 7.1.   Issuer To Furnish To Indenture Trustee Names and Addresses
                    ----------------------------------------------------------
of Noteholders.  The Issuer will furnish or cause to be furnished to the
--------------
Indenture Trustee (a) not more than five (5) 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 Indenture Trustee may reasonably require, of the names and addresses
of the Holders as of such Record Date, (b) at such other times as the Indenture
Trustee may request in writing, within thirty (30) days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than ten (10) days prior to the time such list is furnished; provided,
however, that so long as the Indenture Trustee is the Note Registrar, no such
list shall be required to be furnished.  The Indenture Trustee or, if the
Indenture Trustee is not the Note Registrar, the Issuer shall furnish to the
Insurer in writing on an annual basis on each March 31 and at such other times
as the Insurer may request, a copy of the list.

     SECTION 7.2.   Preservation of Information; Communications to Noteholders.
                    ----------------------------------------------------------

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

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

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

     SECTION 7.3.   Reports by Issuer.  The Issuer shall:
                    -----------------

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

     SECTION 7.4.   Reports by Indenture Trustee. If required by TIA Section
                    ----------------------------
313(a), within 60 days after each June 30, beginning with June 30, 2001, the
Indenture Trustee shall mail to each Noteholder as required by TIA Section
313(c) a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

                                       44
<PAGE>

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

     SECTION 7.5.   Fiscal Year.
                    -----------

     Unless the Issuer otherwise determines, the fiscal year of the Issuer shall
end on December 31 of each year.

                                 ARTICLE VIII.

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

     SECTION 8.1.   Collection of Money.  Except as otherwise expressly provided
                    -------------------
herein, the Indenture Trustee may demand payment or delivery of, and shall
receive directly and without intervention or assistance of any fiscal agent or
other intermediary, all money and other property payable to or receivable by the
Indenture Trustee pursuant to this Indenture.  The Indenture 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 the Trust Fund, the Indenture Trustee may take such action as may be
appropriate to enforce such payment or performance, including the institution
and prosecution of appropriate proceedings.  Any such action shall be without
prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

     SECTION 8.2.   Trust Accounts.
                    --------------

          (a) On or prior to the Closing Date, the Issuer shall establish or
shall cause the Servicer to establish and maintain, in the name of the Indenture
Trustee, for the benefit of the Noteholders, the Insurer and Certificateholders,
as applicable, the Trust Accounts as provided in Section 5.1 of the Sale and
Servicing Agreement.

          (b) Subject to Section 5.6 of the Sale and Servicing Agreement, on
each Payment Date and Redemption Date, the Indenture Trustee shall distribute
all amounts on deposit in the Note Distribution Account to Noteholders in
respect of the Notes to the extent of amounts due and unpaid on the Notes for
principal and interest in the following amounts and in the following order of
priority (except as otherwise provided in Section 5.6):

               (i)   accrued and unpaid interest on the Notes; provided that if
     there are not sufficient funds in the Note Distribution Account to pay the
     entire amount of accrued and unpaid interest then due on each class of the
     Notes, the amount in the Note Distribution Account shall be applied to the
     payment of such interest on the each class of Notes pro rata on the basis
                                                         --- ----
     of the amount of accrued and unpaid interest due on each class of Notes;

               (ii)  principal to the Holders of the Class A-1 Notes until the
     Outstanding Amount of the Class A-1 Notes is reduced to zero;

               (iii) principal to the Holders of the Class A-2 Notes until the
     Outstanding Amount of the Class A-2 Notes is reduced to zero;

               (iv)  principal to the Holders of the Class A-3 Notes until the
     Outstanding Amount of the Class A-3 Notes is reduced to zero; and

                                       45
<PAGE>

               (v) principal to the Holders of the Class A-4 Notes until the
     Outstanding Amount of the Class A-4 Notes is reduced to zero.

     SECTION 8.3.   General Provisions Regarding Accounts.
                    -------------------------------------

          (a) So long as no Default or Event of Default shall have occurred and
be continuing, all or a portion of the funds in the Trust Accounts shall be
invested and reinvested in Eligible Investments by the Indenture Trustee upon
Issuer Order, subject to the provisions of Section 5.1(b) of the Sale and
Servicing Agreement. All income or other gain from investments of moneys
deposited in a Trust Account shall be deposited (or caused to be deposited) by
the Indenture Trustee in such Trust Account, and any loss resulting from such
investments shall be charged to such account. The Issuer will not direct the
Indenture Trustee to make any investment of any funds or to sell any investment
held in any of the Trust Accounts unless the security interest Granted and
perfected in such account will continue to be perfected in such investment or
the proceeds of such sale, in either case without any further action by any
Person, and, in connection with any direction to the Indenture Trustee to make
any such investment or sale, the Issuer shall deliver to the Indenture Trustee
an Opinion of Counsel, acceptable to the Indenture Trustee, to such effect.

          (b) [Reserved]

          (c) Subject to Section 6.1(c), the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in any of the Trust Accounts
resulting from any loss on any Eligible Investment included therein except for
losses attributable to the Indenture Trustee's failure to make payments on such
Eligible Investment issued by the Indenture Trustee, in its commercial capacity
as principal obligor and not as trustee, in accordance with their terms.

          (d) If (i) the Issuer shall have failed to give investment directions
for any funds on deposit in the Trust Accounts to the Indenture Trustee by 2:00
p.m. Eastern Time (or such other time as may be agreed by the Issuer and
Indenture Trustee) on any Business Day; or (ii) a Default or Event of Default
shall have occurred and be continuing with respect to the Notes but the Notes
shall not have been declared due and payable pursuant to Section 5.2, or, if
such Notes shall have been declared due and payable following an Event of
Default, amounts collected or receivable from the Trust Fund are being applied
in accordance with Section 5.5 as if there had not been such a declaration; then
the Indenture Trustee shall, to the fullest extent practicable, invest and
reinvest funds in the Trust Accounts in investments of the type set forth in
clause (c) of the definition of Eligible Investments maturing no later than the
Business Day immediately preceding the next scheduled Payment Date.

     SECTION 8.4.   Release of Trust Fund.
                    ---------------------

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

          (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.7 have
been paid, release any remaining portion of the Trust Fund from the lien of this
Indenture and release for deposit into the Certificate Distribution Account or
to any other Person entitled thereto any funds then on deposit in the Trust
Accounts.  The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.4(b) only upon receipt of an Issuer

                                       46
<PAGE>

Request accompanied by an Officer's Certificate, an Opinion of Counsel and (if
required by TIA) Independent Certificates in accordance with TIA Sections 314(c)
and 314(d)(1) meeting the applicable requirements of Section 11.1.

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

                                       47
<PAGE>

     SECTION 8.6.

                                  ARTICLE IX.

                            Supplemental Indentures
                            -----------------------

     SECTION 9.1.   Supplemental Indentures.
                    -----------------------

          (a) Without the consent of the Holders of any Notes but with the prior
written consent of the Insurer (unless an Insurer Default shall have occurred
and be continuing) and with prior notice to the Rating Agencies by the Issuer,
as evidenced to the Indenture Trustee, the Issuer and the Indenture Trustee,
when authorized by an Issuer Order, at any time and from time to time, may enter
into one or more indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as in force at the date of the execution
thereof), in form satisfactory to the Indenture Trustee, for any of the
following purposes:

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

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

               (iii)  to add to the covenants of the Issuer, for the benefit of
     the 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 Indenture Trustee;

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

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

               (vii)  to modify, eliminate or add to the provisions of this
     Indenture to such extent as shall be necessary to 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.

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

          (b)  The Issuer and the Indenture Trustee, when authorized by an
Issuer Order, may, also without the consent of any of the Holders of the Notes
but with the consent of the Insurer, if there is no Insurer

                                       48
<PAGE>

Default, and with prior notice to the Rating Agencies by the Issuer, as
evidenced to the Indenture Trustee, 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 9.2.   Supplemental Indentures with Consent of Noteholders.
                    ---------------------------------------------------

          (a)  The Issuer and the Indenture Trustee, when authorized by an
Issuer Order, also may, with prior written notice to the Rating Agencies, with
the consent of the Insurer (unless an Insurer Default shall have occurred and be
continuing) and if the Insurer is no longer the Controlling Party, with the
consent of the Holders of not less than a majority of the Outstanding Amount of
the Notes, enter into an indenture or indentures supplemental hereto for any
purpose; provided, however, that, no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Note affected thereby:

               (i)    change the date of payment of any installment of principal
     of or interest on any Note, or reduce the principal amount thereof, the
     interest rate thereon or the Redemption Price with respect thereto, change
     the provision of this Indenture relating to the application of collections
     on, or the proceeds of the sale of, the Trust Fund 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;

               (ii)   impair the right to institute suit for the enforcement of
     the provisions of this Indenture requiring the application of funds
     available therefor, as provided in Article V, to the payment of any such
     amount due on the Notes on or after the respective due dates thereof (or,
     in the case of redemption, on or after the Redemption Date);

               (iii)  reduce the percentage of the 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 Indenture Trustee to direct the Issuer to sell
     or liquidate the Trust Fund pursuant to Section 5.4;

               (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 Basic Documents cannot be modified or
     waived without the consent of the Holder of each Outstanding Note;

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

                                       49
<PAGE>

               (viii)   permit the creation of any lien ranking prior to or on a
     parity with the lien of this Indenture with respect to any part of the
     Trust Fund or, except as otherwise permitted or contemplated herein or in
     any of the Basic Documents, terminate the lien of this Indenture on any
     property at any time subject hereto or deprive the Holder of any Note of
     the security provided by the lien of this Indenture.

          (b)  The Indenture Trustee may determine whether or not any Notes
would be affected by any supplemental indenture and any such determination shall
be conclusive upon the Holders of all Notes, whether theretofore or thereafter
authenticated and delivered hereunder. The Indenture Trustee shall not be liable
for any such determination made in good faith.

          (c)  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.

          (d)  Promptly after the execution by the Issuer and the Indenture
Trustee of any supplemental indenture pursuant to this Section, the Indenture
Trustee shall mail to the Insurer and 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 Indenture
Trustee to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture.

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

     SECTION 9.4.   Effect of Supplemental Indenture.  Upon the execution of any
                    --------------------------------
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith with respect
to the Notes affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the
Indenture Trustee, the Issuer, the Insurer  and 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 9.5.   Conformity With Trust Indenture Act. Every amendment of this
                    -----------------------------------
Indenture and every supplemental indenture executed pursuant to this Article IX
shall conform to the requirements of the Trust Indenture Act as then in effect
so long as this Indenture shall then be qualified under the Trust Indenture Act.

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

                                       50
<PAGE>

                                   ARTICLE X.

                              Redemption of Notes
                              -------------------

     SECTION 10.1.  Redemption.
                    ----------

          (a)  The Notes are subject to redemption in whole, but not in part, at
the direction of the Seller pursuant to Section 9.1(a) of the Sale and Servicing
Agreement, on any Payment Date on which the Servicer exercises its option to
purchase the Trust Estate pursuant to said Section 9.1(a), for a purchase price
equal to the Redemption Price; provided, however, that the Issuer has available
funds sufficient to pay the Redemption Price. The Servicer or the Issuer shall
furnish the Insurer and the Rating Agencies notice of such redemption. If the
Notes are to be redeemed pursuant to this Section 10.1(a), the Servicer or the
Issuer shall furnish notice of such election to the Indenture Trustee not later
than 35 days prior to the Redemption Date and the Issuer shall deposit with the
Indenture Trustee in the Note Distribution 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 10.2 to
each Holder of Notes.

          (b)  In the event that the assets of the Trust are sold pursuant to
Section 9.2 of the Trust Agreement, all amounts on deposit in the Note
Distribution Account shall be paid to the Noteholders up to the Outstanding
Amount of the Notes and all accrued and unpaid interest thereon. If amounts are
to be paid to Noteholders pursuant to this Section 10.1(c), the Servicer or the
Issuer shall, to the extent practicable, furnish notice of such event to the
Indenture Trustee not later than 45 days prior to the Redemption Date whereupon
all such amounts shall be payable on the Redemption Date.

     SECTION 10.2.  Form of Redemption Notice.
                    -------------------------

          (a)  Notice of redemption under Section 10.1 shall be given by the
Indenture Trustee by facsimile or by first-class mail, postage prepaid,
transmitted or mailed prior to the applicable Redemption Date to the Insurer and
each Holder of Notes, as of the close of business on the Record Date 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;

               (iii)  that the Record Date otherwise applicable to such
     Redemption Date is not applicable and that payments shall be made only upon
     presentation and surrender of such Notes and the place where such Notes are
     to be surrendered for payment of the Redemption Price (which shall be the
     office or agency of the Issuer to be maintained as provided in Section
     3.2); and

               (iv)   that (unless the Issuer shall default in the payment of
     the Redemption Price) interest on the Notes shall cease to accrue on the
     Redemption Date. Notice of redemption of the Notes shall be given by the
     Indenture Trustee in the name and at the expense of the Issuer. Failure to
     give notice of redemption, or any defect therein, to any 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 10.1(b) is not required
to be given to Noteholders.

                                       51
<PAGE>

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

                                  ARTICLE XI.

                                 Miscellaneous
                                 -------------

     SECTION 11.1.  Compliance Certificates and Opinions, etc.
                    ------------------------------------------

          (a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall furnish to the Indenture Trustee and to the Insurer (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, and (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;

               (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) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.1(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee and the Insurer 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 Collateral or other property or securities to be so deposited.

               (i)   Whenever the Issuer is required to furnish to the Indenture
     Trustee and the Insurer an Officer's Certificate certifying or stating the
     opinion of any signer thereof as to the matters described in clause (b)
     above, the Issuer shall also deliver to the Indenture Trustee and the
     Insurer an Independent Certificate as to the same matters, if the fair
     value to the Issuer of the securities to be so deposited and of all other
     such securities made the basis of any such withdrawal or release since the
     commencement of the then-current fiscal year of the Issuer, as set forth in
     the certificates delivered

                                       52
<PAGE>

     pursuant to clause (b) above and this clause (b)(i), is 10% or more of the
     Outstanding Amount of the Notes, but such a certificate need not be
     furnished with respect to any securities so deposited, if the fair value
     thereof to the Issuer as set forth in the related Officer's Certificate is
     less than $25,000 or less than 1% percent of the Outstanding Amount of the
     Notes.

               (ii)      Other than with respect to the release of any Purchased
     Receivables or Liquidated Receivables, whenever any property or securities
     are to be released from the lien of this Indenture, the Issuer shall also
     furnish to the Indenture Trustee and the Insurer 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 opinion of such
     person the proposed release will not impair the security under this
     Indenture in contravention of the provisions hereof.

               (iii)     Whenever the Issuer is required to furnish to the
     Indenture Trustee and the Insurer an Officer's Certificate certifying or
     stating the opinion of any signer thereof as to the matters described in
     clause (b) above, the Issuer shall also furnish to the Indenture Trustee
     and the Insurer an Independent Certificate as to the same matters if the
     fair value of the property or securities and of all other property other
     than Purchased Receivables and Liquidated Receivables, or securities
     released from the lien of this Indenture since the commencement of the then
     current calendar year, as set forth in the certificates required by clause
     (b) above and this clause (b)(iii), 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 1% percent of the then Outstanding Amount of the Notes.

               (iv)      Notwithstanding Section 2.9 or any other provision of
     this Section, the Issuer may (A) collect, liquidate, sell or otherwise
     dispose of Receivables as and to the extent permitted or required by the
     Basic Documents and (B) make cash payments out of the Trust Accounts as and
     to the extent permitted or required by the Basic Documents.

     SECTION 11.2.  Form of Documents Delivered to Indenture 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 or her certificate or opinion is
based are erroneous.  Any such certificate of an Authorized Officer or Opinion
of Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Servicer, the Seller or the Issuer, stating that the information with respect to
such factual matters is in the possession of the Servicer, the Seller 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, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

                                       53
<PAGE>

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

     SECTION 11.3.  Acts of Noteholders.
                    -------------------

          (a)  Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied 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 6.1) conclusive in
favor of the Indenture 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 customary manner of the Indenture
Trustee.

          (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
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

     SECTION 11.4.  Notices, etc., to Indenture Trustee, Issuer, Insurer 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:

          (a)  The Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed certified mail, return receipt requested and shall
be deemed to have been duly given upon receipt to the Indenture Trustee at its
Corporate Trust Office, or

          (b)  The Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed certified mail, return receipt requested and shall
be deemed to have been duly given upon receipt to the Issuer addressed to:
PeopleFirst.com Vehicle Receivables Owner Trust 2000-1, in care of Wilmington
Trust Company, 1100 North Market Street, Rodney Square, North Wilmington,
Delaware 19890, Attention:  Corporate Trust Administration or at any other
address previously furnished in writing to the Indenture Trustee by Issuer.  The
Issuer shall promptly transmit any notice received by it from the Noteholders to
the Indenture Trustee.

                                       54
<PAGE>

          (c)  The Insurer by the Issuer or the Indenture Trustee shall be
sufficient for any purpose hereunder if in writing and mailed by registered mail
or personally delivered or telexed or telecopied to the recipient as follows:

  To the Insurer:                   Financial Security Assurance Inc.
                                    350 Park Avenue
                                    New York. New York  10022
                                    Attention:     Surveillance Department
                                    Telex No.:     (212) 688-3101
                                    Confirmation:  (212) 826-0100
                                    Telecopy No.:  (212) 339-3518 or
                                                   (212) 339-3529

     (In each case in which notice or other communication to the Insurer refers
to an Event of Default, a claim on the Policy or with respect to which failure
on the part of the Insurer to respond shall be deemed to constitute consent or
acceptance, then a copy of such notice or other communication should also be
sent to the attention of the General Counsel and the Head--Financial Guaranty
Group "URGENT MATERIAL ENCLOSED.")

     Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee, or the Owner Trustee shall be in writing, personally
delivered, delivered by overnight courier or mailed certified mail, return
receipt requested to (i) Standard & Poor's, at the following address: Standard &
Poor's Structured Finance Ratings, 55 Water Street, 41/st/ Floor, New York, New
York, 10041-0003, Attention of Asset Backed Surveillance Department and (ii)
Moody's, at the following address:  Moody's Investors Service, Inc., 99 Church
Street, New York, New York, 10004, Attention:  ABS Monitoring Department; or as
to each of the foregoing, at such other address as shall be designated by
written notice to the other parties.

     SECTION 11.5.  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, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice.  In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner here
in 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 Indenture 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 to Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a
sufficient giving of such notice.

     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.

                                       55
<PAGE>

     SECTION 11.6.  Alternate Payment and Notice Provisions.  Notwithstanding
                    ---------------------------------------
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods provided for in this Indenture for such
payments or notices, provided that such methods are reasonable and consented to
by the Indenture Trustee (which consent shall not be unreasonably withheld).
The Issuer will furnish to the Indenture Trustee a copy of each such agreement
and the Indenture Trustee will cause payments to be made and notices to be given
in accordance with such agreements.

     SECTION 11.7.  Conflict with Trust Indenture Act. If any provision hereof
                    ---------------------------------
limits, qualifies or conflicts with another provision hereof that is required 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 Sections 310 through 317 that impose duties on any
person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

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

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

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

     SECTION 11.11.   Benefits of Indenture.  The Insurer and its successors and
                      ---------------------
assigns shall be a third-party beneficiary to the provisions of this Indenture,
and shall be entitled to rely upon and directly to enforce such provisions of
this Indenture so long as no Insurer Default shall have occurred and be
continuing.  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 Fund, any
benefit or any legal or equitable right, remedy or claim under this Indenture.
The Insurer may disclaim any of its rights and powers under this Indenture (in
which case the Indenture Trustee may exercise such right or power hereunder),
but not its duties and obligations under the Policy, upon delivery of a written
notice to the Indenture Trustee.

     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 an which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

     SECTION 11.13.   GOVERNING LAW.  THIS INDENTURE SHALL BE CONSTRUED IN
                      -------------
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATION LAW, BUT OTHERWISE WITHOUT REFERENCE TO ITS CONFLICT OF
LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                       56
<PAGE>

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

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

     SECTION 11.16.   Trust Obligation.
                      ----------------

               (a) No recourse may be taken, directly or indirectly, with
respect to the obligations of the Issuer, the Seller, the Transferor, the
Depositor, the Servicer, the Owner Trustee or the Indenture Trustee on the Notes
or under this Indenture or any certificate or other writing delivered in
connection herewith or therewith, against (i) the Seller, the Transferor, the
Depositor, the Servicer, the Owner Trustee or the Indenture 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 Seller, the Transferor, the Depositor, the Servicer, the Owner
Trustee or the Indenture Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Seller, the Transferor, the Depositor,
the Servicer, the Owner Trustee, or the Indenture Trustee or of any successor or
assign of the Seller, the Transferor, the Depositor, the Servicer, the Owner
Trustee or the Indenture Trustee in its individual capacity, except as any such
Person may have expressly agreed (it being understood that the Indenture Trustee
and the Owner Trustee have no such obligations in their individual 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. For all purposes of this Indenture, in the performance of any
duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of Article
VI, VII and VIII of the Trust Agreement.

               (b) It is expressly understood and agreed to by the parties
hereto that (a) this Indenture is executed and delivered by Wilmington Trust
Company, not individually or personally but solely as Owner Trustee of the
PeopleFirst.com Vehicle Receivables Owner Trust 2000-1, in the exercise of the
powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the
Issuer is made and intended not as personal representations, undertakings and
agreements by Wilmington Trust Company but is made and intended for the purpose
for binding only the Issuer, (c) nothing herein contained shall be construed as
creating any liability on Wilmington Trust Company, individually or personally,
to perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived by the parties hereto and by any
Person claiming by, through or under the parties hereto and (d) under no
circumstances shall Wilmington Trust Company be personally liable for the
payment of any indebtedness or expenses of the Issuer or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Issuer under this Indenture or any other related documents.

     SECTION 11.17.   No Petition.  The Indenture 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 Transferor, the Depositor,
or the Issuer, or join in any institution against the Transferor, the Depositor,
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 Basic Documents.

                                       57
<PAGE>

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

                     [THIS SPACE LEFT INTENTIONALLY BLANK]

                                       58
<PAGE>

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

                                    PEOPLEFIRST.COM VEHICLE
                                    RECEIVABLES OWNER TRUST 2000-1

                                    By:  WILMINGTON TRUST COMPANY, not in
                                    its individual capacity but solely as Owner
                                    Trustee,

                                    By:  /s/  Kathleen A. Pedelini
                                       ----------------------------------------
                                       Name:  Kathleen A. Pedelini
                                       Title: Administrative Account Manager

                                    NORWEST BANK MINNESOTA, NATIONAL
                                    ASSOCIATION, not in its individual capacity
                                    but solely as Indenture Trustee,

                                    By:  /s/  S. Dignan
                                       ----------------------------------------
                                       Name:  S. Dignan
                                       Title: Corporate Trust Officer

                                       59
<PAGE>

                                                                       Exhibit A

                            Schedule of Receivables

                                      A-1

<PAGE>

                                                                     EXHIBIT B-1
                            [Form of Class A-1 Note]

No. A-1-1                           June 30, 2000                   70976Q AD 7
                                    -------------                     CUSIP
                                   Date of Issuance

July 15, 2001                         CEDE & CO.                     $31,000,000
-------------                         ---------                      -----------
Final Scheduled                    Registered Owner           Original Principal
Payment Date                                                              Amount

                      SEE REVERSE FOR CERTAIN DEFINITIONS

     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).

     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.

             PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1

                      Class A-1 6.713% ASSET BACKED NOTES

     PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1, a Delaware business
trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE
& CO., or registered assigns, the principal sum of THIRTY ONE MILLION DOLLARS
payable on each Payment Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $31,000,000 and the
denominator of which is $31,000,000 by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
A-1 Notes pursuant to Section 3.1 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
Payment Date in July 15, 2001 (the "Final Scheduled Payment Date"). The Issuer
will pay interest on this Note at the rate per annum shown above on each Payment
Date until the principal of this Note is paid or made available for payment.
With respect to any Payment Date, interest on the Outstanding Amount of this
Note will be an amount equal to the rate shown above, multiplied by the
Outstanding Amount on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), multiplied by the
actual number of days elapsed during the applicable period divided by 360.
Interest on this Note will accrue for each Payment Date for the related Interest
Period.  Interest will be computed on the basis of the actual number of days
elapsed in a 360-day year.  Such principal of and interest on this Note shall be
paid in the manner specified on the reverse hereof.

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

                                     B-1-1
<PAGE>

     The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments to the Noteholders to the extent set forth in the Indenture.

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

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

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

                                PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER
                                TRUST 2000-1

                                By: WILMINGTON TRUST COMPANY, not in its
                                individual capacity but solely as Owner Trustee

                                By:______________________________________
                                   Name:
                                   Title:
                                   Date:

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:

                                NORWEST BANK MINNESOTA, NATIONAL
                                ASSOCIATION, not in its individual capacity
                                but solely as Indenture Trustee,

                                By:______________________________________
                                   Authorized Signatory

                                     B-1-2
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-1 6.713% Asset Backed Notes (herein called the "Class
A-1 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, as trustee
(the "Indenture Trustee", which term includes any successor Indenture 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 Indenture 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 Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class
A-4 Notes (together, the "Notes") are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

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

     As provided in the Indenture and subject to the restrictions on transfer
and 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, (i) duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Indenture 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
Securities Transfer Agents Medallion Program ("Stamp") or such other "signature
guarantee program" as may be determined by the Note Registrar in addition to, or
in substitution for, Stamp, all in accordance with the Exchange Act, and (ii)
accompanied by such other documents as the Indenture 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 by
accepting the benefits of the Indenture that such Noteholder will not at any
time institute against the Transferor, the Depositor, or the Issuer or join in
any institution against the Transferor, the Depositor, 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, the
Indenture or the Basic Documents.

     By acceptance of this Note each Noteholder covenants and agrees to treat
such Note as indebtedness for purposes of federal income, State and local income
and franchise and any other taxes.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Indenture Trustee and the Insurer and any agent of the Issuer, the
Indenture Trustee or the Insurer 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 Indenture Trustee nor any
such agent shall be affected by notice to the contrary.

                                     B-1-3
<PAGE>

     The Indenture permits 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 Insurer
or, if an Insurer Default has occurred and is continuing, with the consent of
the Holders of Notes representing a majority of the Outstanding Amount of all
Notes at time Outstanding.  The Indenture also contains provisions permitting
the Insurer (and in certain circumstances described in the Indenture, Holders of
Notes representing specified percentages of the Outstanding Amount of the 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 Controlling
Party or the Holder of this Note (or any one of more Predecessor Notes) shall be
conclusive and binding upon such Holder 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 Indenture 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 Indenture Trustee and the
Holders 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 New York, including Section 5-1401 of the General Obligations
Law, but otherwise 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 Indenture or the Basic Documents, neither Wilmington Trust
Company, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal 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, it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Owner Trustee for the sole purposes of binding the interests of the Owner
Trustee in the assets of the Issuer. The Holder of this Note by the acceptance
hereof agrees that except as expressly provided in the Indenture or the Basic
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.

                                     B-1-4
<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: __________________ /1/

_________________

/1/  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.

                                     B-1-5
<PAGE>

                                                                     EXHIBIT B-2

                            [Form of Class A-2 Note]

No. A-2-1                      June 30, 2000                        70976Q AE 5
                               -------------
                              Date of Issuance                       CUSIP

June 15, 2003                   CEDE & CO.                        $109,000,000
-------------                   ---------                         -------------
Final Scheduled               Registered Owner               Original Principal
Payment Date                                                            Amount

                      SEE REVERSE FOR CERTAIN DEFINITIONS

     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).

     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.

          PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1

                      CLASS A-2 7.275% ASSET BACKED NOTES

     PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1, a Delaware business
trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE
& CO., or registered assigns, the principal sum of ONE HUNDRED AND NINE MILLION
DOLLARS payable on each Payment Date in an amount equal to the result obtained
by multiplying (i) a fraction the numerator of which is $109,000,000 and the
denominator of which is $109,000,000 by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
A-2 Notes pursuant to Section 3.1 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
Payment Date in June 15, 2003 (the "Final Scheduled Payment Date"). The Issuer
will pay interest on this Note at the rate per annum shown above on each Payment
Date until the principal of this Note is paid or made available for payment.
With respect to any Payment Date, interest on the Outstanding Amount of this
Note will be an amount equal to one-twelfth of the rate shown above, multiplied
by the Outstanding Amount on the preceding Payment Date (after giving effect to
all payments of principal made on the preceding Payment Date). Interest on this
Note will accrue for each Payment Date for the related Interest Period. Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day
months. Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof.

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

                                     B-2-1
<PAGE>

     The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments to the Noteholders to the extent set forth in the Indenture.

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

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

                                     B-2-2
<PAGE>

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

                                 PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER
                                 TRUST 2000-1

                                 By: WILMINGTON TRUST COMPANY, not in its
                                 individual capacity but solely as Owner Trustee

                                 By:___________________________________________
                                    Name:
                                    Title:
                                    Date:

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:

                                 NORWEST BANK MINNESOTA, NATIONAL
                                 ASSOCIATION, not in its individual capacity
                                 but solely as Indenture Trustee,

                                 By:___________________________________________
                                    Authorized Signatory

                                     B-2-3
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-2 7.275% Asset Backed Notes (herein called the "Class
A-2 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, as trustee
(the "Indenture Trustee", which term includes any successor Indenture 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 Indenture 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 Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class
A-4 Notes (together, the "Notes") are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

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

     As provided in the Indenture and subject to the restrictions on transfer
and 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, (i) duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Indenture 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
Securities Transfer Agents Medallion Program ("Stamp") or such other "signature
guarantee program" as may be determined by the Note Registrar in addition to, or
in substitution for, Stamp, all in accordance with the Exchange Act, and (ii)
accompanied by such other documents as the Indenture 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 by
accepting the benefits of the Indenture that such Noteholder will not at any
time institute against the Transferor, the Depositor, or the Issuer or join in
any institution against the Transferor, the Depositor, 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, the
Indenture or the Basic Documents.

     By acceptance of this Note each Noteholder covenants and agrees to treat
such Note as indebtedness for purposes of federal income, State and local income
and franchise and any other taxes.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Indenture Trustee and the Insurer and any agent of the Issuer, the
Indenture Trustee or the Insurer 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 Indenture Trustee nor any
such agent shall be affected by notice to the contrary.

                                     B-2-4
<PAGE>

    The Indenture permits 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 Insurer
or, if an Insurer Default has occurred and is continuing, with the consent of
the Holders of Notes representing a majority of the Outstanding Amount of all
Notes at time Outstanding.  The Indenture also contains provisions permitting
the Insurer (and in certain circumstances described in the Indenture, Holders of
Notes representing specified percentages of the Outstanding Amount of the 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 Controlling
Party or the Holder of this Note (or any one of more Predecessor Notes) shall be
conclusive and binding upon such Holder 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 Indenture 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 Indenture Trustee and the
Holders 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 New York, including Section 5-1401 of the General Obligations
Law, but otherwise 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 Indenture or the Basic Documents, neither Wilmington Trust
Company, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal 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, it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Owner Trustee for the sole purposes of binding the interests of the Owner
Trustee in the assets of the Issuer. The Holder of this Note by the acceptance
hereof agrees that except as expressly provided in the Indenture or the Basic
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.

                                     B-2-5
<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: ____________                      _________________________________/1/
                                         Signature Guaranteed:

_________________

/1/  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.

                                     B-2-6
<PAGE>

                                                                     EXHIBIT B-3
                           [Form of Class A-3 Note]

No. A-3-1                        June 30, 2000                       70976Q AF 2
                                 -------------
                                Date of Issuance                        CUSIP

February 15, 2004                  CEDE & CO.                        $34,000,000
-----------------                  ----------                        -----------
Final Scheduled                 Registered Owner              Original Principal
Payment Date                                                              Amount

                      SEE REVERSE FOR CERTAIN DEFINITIONS

     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).

     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.

            PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1

                      CLASS A-3 7.365% ASSET BACKED NOTES

     PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1, a Delaware business
trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE
& CO., or registered assigns, the principal sum of THIRTY FOUR MILLION DOLLARS
payable on each Payment Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $34,000,000 and the
denominator of which is $34,000,000 by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
A-3 Notes pursuant to Section 3.1 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
Payment Date in February 15, 2004 (the "Final Scheduled Payment Date"). The
Issuer will pay interest on this Note at the rate per annum shown above on each
Payment Date until the principal of this Note is paid or made available for
payment. With respect to any Payment Date, interest on the Outstanding Amount of
this Note will be an amount equal to one-twelfth of the rate shown above,
multiplied by the Outstanding Amount on the preceding Payment Date (after giving
effect to all payments of principal made on the preceding Payment Date).
Interest on this Note will accrue for each Payment Date for the related Interest
Period. Interest will be computed on the basis of a 360-day year consisting of
twelve 30-day months. Such principal of and interest on this Note shall be paid
in the manner specified on the reverse hereof.

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

                                     B-3-1
<PAGE>

     The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments to the Noteholders to the extent set forth in the Indenture.

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

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

                                     B-3-2
<PAGE>

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

                                    PEOPLEFIRST.COM VEHICLE
                                    RECEIVABLES OWNER TRUST 2000-1

                                     By: WILMINGTON TRUST COMPANY, not in
                                     its individual capacity but solely as
                                     Owner Trustee

                                     By: _______________________________
                                         Name:
                                         Title:
                                         Date:

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:

                                     NORWEST BANK MINNESOTA, NATIONAL
                                     ASSOCIATION, not in its individual capacity
                                     but solely as Indenture Trustee,

                                     By: ________________________________
                                           Authorized Signatory

                                     B-3-3
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-3 7.365% Asset Backed Notes (herein called the "Class
A-3 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, as trustee
(the "Indenture Trustee", which term includes any successor Indenture 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 Indenture 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 Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class
A-4 Notes (together, the "Notes") are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class A-3 Notes will be payable on each Payment Date in an
amount described on the face hereof. "Payment Date" means the fifteenth day of
each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing in July, 2000.

     As provided in the Indenture and subject to the restrictions on transfer
and 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, (i) duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Indenture 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
Securities Transfer Agents Medallion Program ("Stamp") or such other "signature
guarantee program" as may be determined by the Note Registrar in addition to, or
in substitution for, Stamp, all in accordance with the Exchange Act, and (ii)
accompanied by such other documents as the Indenture 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 by
accepting the benefits of the Indenture that such Noteholder will not at any
time institute against the Transferor, the Depositor, or the Issuer or join in
any institution against the Transferor, the Depositor, 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, the
Indenture or the Basic Documents.

     By acceptance of this Note each Noteholder covenants and agrees to treat
such Note as indebtedness for purposes of federal income, State and local income
and franchise and any other taxes.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Indenture Trustee and the Insurer and any agent of the Issuer, the
Indenture Trustee or the Insurer 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 Indenture Trustee nor any
such agent shall be affected by notice to the contrary.

                                     B-3-4
<PAGE>

     The Indenture permits 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 Insurer
or, if an Insurer Default has occurred and is continuing, with the consent of
the Holders of Notes representing a majority of the Outstanding Amount of all
Notes at time Outstanding.  The Indenture also contains provisions permitting
the insurer (and in certain circumstances described in the Indenture, Holders of
Notes representing specified percentages of the Outstanding Amount of the 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 Controlling
Party or the Holder of this Note (or any one of more Predecessor Notes) shall be
conclusive and binding upon such Holder 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 Indenture 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 Indenture Trustee and the
Holders 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 New York, including Section 5-1401 of the General Obligations
Law, but otherwise 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 Indenture or the Basic Documents, neither Wilmington Trust
Company, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal 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, it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Owner Trustee for the sole purposes of binding the interests of the Owner
Trustee in the assets of the Issuer. The Holder of this Note by the acceptance
hereof agrees that except as expressly provided in the Indenture or the Basic
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.

                                     B-3-5
<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:  ___________                 __________________________________/1/
                                    Signature Guaranteed:

_________________

/1/  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.

                                     B-3-6
<PAGE>

                                                                     EXHIBIT B-4
                           [Form of Class A-4 Note]

No. A-4-1                        June 30, 2000                     70976Q AG 0
                                 -------------
                                Date of Issuance                      CUSIP

December 15, 2006                  CEDE & CO.                       $71,000,000
-----------------                  ---------                        -----------
Final Scheduled                 Registered Owner             Original Principal
Payment Date                                                             Amount

                      SEE REVERSE FOR CERTAIN DEFINITIONS

     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).

     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.

            PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1

                      Class A-4 7.405% ASSET BACKED NOTES

     PEOPLEFIRST.COM VEHICLE RECEIVABLES OWNER TRUST 2000-1, a Delaware business
trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE
& CO., or registered assigns, the principal sum of SEVENTY ONE MILLION DOLLARS
payable on each Payment Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $71,000,000 and the
denominator of which is $71,000,000 by (ii) the aggregate amount, if any,
payable from the Note Distribution Account in respect of principal on the Class
A-4 Notes pursuant to Section 3.1 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
Payment Date in December 15, 2006 (the "Final Scheduled Payment Date"). The
Issuer will pay interest on this Note at the rate per annum shown above on each
Payment Date until the principal of this Note is paid or made available for
payment.  With respect to any Payment Date, interest on the Outstanding Amount
of this Note will be an amount equal to one-twelfth of the rate shown above,
multiplied by the Outstanding Amount on the preceding Payment Date (after giving
effect to all payments of principal made on the preceding Payment Date).
Interest on this Note will accrue for each Payment Date for the related Interest
Period.  Interest will be computed on the basis of a 360-day year consisting of
twelve 30-day months.  Such principal of and interest on this Note shall be paid
in the manner specified on the reverse hereof.

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

                                     B-4-1
<PAGE>

     The Notes are entitled to the benefits of a financial guaranty insurance
policy (the "Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments to the Noteholders to the extent set forth in the Indenture.

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

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

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

                                    PEOPLEFIRST.COM VEHICLE
                                    RECEIVABLES OWNER TRUST 2000-1

                                    By: WILMINGTON TRUST COMPANY, not in
                                    its individual capacity but solely as
                                    Owner Trustee

                                    By: _______________________________
                                        Name:
                                        Title:
                                        Date:

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:

                                    NORWEST BANK MINNESOTA, NATIONAL
                                    ASSOCIATION, not in its individual capacity
                                    but solely as Indenture Trustee,

                                    By: _______________________________
                                        Authorized Signatory

                                     B-4-2
<PAGE>

                               [REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-4 7.405% Asset Backed Notes (herein called the "Class
A-4 Notes"), all issued under an Indenture dated as of June 1, 2000 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, as trustee
(the "Indenture Trustee", which term includes any successor Indenture 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 Indenture 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 Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class
A-4 Notes (together, the "Notes") are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class A-4 Notes will be payable on each Payment Date in an
amount described on the face hereof. "Payment Date" means the fifteenth day of
each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing in July, 2000.

     As provided in the Indenture and subject to the restrictions on transfer
and 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, (i) duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Indenture 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
Securities Transfer Agents Medallion Program ("Stamp") or such other "signature
guarantee program" as may be determined by the Note Registrar in addition to, or
in substitution for, Stamp, all in accordance with the Exchange Act, and (ii)
accompanied by such other documents as the Indenture 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 by
accepting the benefits of the Indenture that such Noteholder will not at any
time institute against the Transferor, the Depositor, or the Issuer or join in
any institution against the Transferor, the Depositor, 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, the
Indenture or the Basic Documents.

     By acceptance of this Note each Noteholder covenants and agrees to treat
such Note as indebtedness for purposes of federal income, State and local income
and franchise and any other taxes.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Indenture Trustee and the Insurer and any agent of the Issuer, the
Indenture Trustee or the Insurer 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 Indenture Trustee nor any
such agent shall be affected by notice to the contrary.

                                     B-4-3
<PAGE>

     The Indenture permits 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 Insurer
or, if an Insurer Default has occurred and is continuing, with the consent of
the Holders of Notes representing a majority of the Outstanding Amount of all
Notes at time Outstanding.  The Indenture also contains provisions permitting
the Insurer (and in certain circumstances described in the Indenture, Holders of
Notes representing specified percentages of the Outstanding Amount of the 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 Controlling
Party or the Holder of this Note (or any one of more Predecessor Notes) shall be
conclusive and binding upon such Holder 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 Indenture 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 Indenture Trustee and the
Holders 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 New York, including Section 5-1401 of the General Obligations
Law, but otherwise 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 Indenture or the Basic Documents, neither Wilmington Trust
Company, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal 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, it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Owner Trustee for the sole purposes of binding the interests of the Owner
Trustee in the assets of the Issuer. The Holder of this Note by the acceptance
hereof agrees that except as expressly provided in the Indenture or the Basic
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.

                                     B-4-4
<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:  ___________                ____________________________________/1/
                                   Signature Guaranteed:

_________________

/1/  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.

                                     B-4-5

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