Document:

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                          SECOND SUPPLEMENTAL INDENTURE

                                     between

                             SUMMIT SECURITIES, INC.

                                       and

                      U.S. BANK TRUST NATIONAL ASSOCIATION,
                                   as Trustee

                            Dated as of March 1, 2001

           Relating to an issue of Investment Certificates, Series B-1

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     THIS SECOND SUPPLEMENTAL INDENTURE (the "Second Supplement"), dated as of
March 1, 2001 in entered into by and between Summit Securities, Inc., an
Idaho corporation (hereinafter called "Summit" or the "Company"), having its
principal office at 601 W. First Avenue, Spokane, Washington 99201, and U.S.
Bank Trust National Association, a national banking association organized and
existing under the laws of the United States of America, formerly known as First
Trust National Association (hereinafter, the "Trustee"), having offices at 1420
5th Avenue, 7th Floor, Seattle, Washington 98101, and is supplemental to an
Indenture dated as of November 15, 1990 (the "Base Indenture") and the First
Supplement thereto, dated as of December 31, 1997 (together with the Base
Indenture and the Second Supplement, the "Indenture") between the Company and
the Trustee, as successor to West One Bank, Idaho, N.A., the prior trustee.

                             RECITALS OF THE COMPANY

     The Company previously executed and delivered to the Trustee the Indenture
that provides for the issuance in one or more series of the Company's Investment
Certificates (hereinafter called the "Certificates"), in accordance with the
Indenture. The initial series of Certificates issued under the Indenture is
known as the Company's Investment Certificates, Series A, limited to the
aggregate principal amount of $20,000,000.

     The Company and the Trustee previously executed the First Supplement that
provides for the issuance of the Company's Investment Certificates, Series B
(the "Series B Certificates") in accordance with the Indenture, as amended by
the First Supplement.

     The Company desires to execute and deliver this Second Supplement, in
accordance with the provisions of the Indenture, for the purpose of providing
for the creation of a new series of Certificates, designating the series to be
created and specifying the form and provisions of the Certificates of such
series.

     The Board of Directors of the Company has established a new series of
Certificates to be designated "Investment Certificates, Series B-1," not limited
in aggregate principal amount, in such amounts as may be authorized for issuance
from time to time by the Board of Directors of the Company. The Company has
complied or will comply with all provisions required to issue additional
Certificates under the Indenture. The Investment Certificates, Series B-1 are
hereinafter referred to as the Series B-1 Certificates.

     All things necessary to make the Investment Certificates, Series B-1, when
executed by the Company, authenticated by the Trustee, delivered as authorized
by the Company and duly issued by the Company, the valid obligations of the
Company, and to make this Second Supplemental Indenture a valid agreement of the
Company, in accordance with their or its terms, have been done.

     NOW, THEREFORE, THIS SECOND SUPPLEMENT WITNESSETH:

     For and in consideration of the premises and the purchase of the Series B-1
Certificates, by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Series B-1
Certificates, as follows:

                                       2
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                                    ARTICLE I

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     SECTION 1.01. RELATION TO BASE INDENTURE. This Second Supplement is
executed and shall be construed as an indenture supplemental to the Base
Indenture and constitutes an integral part of the Base Indenture. Except to the
extent inconsistent with the express terms hereof, all of the provisions, terms,
covenants and conditions of the Base Indenture shall be applicable to the Series
B-1 Certificates, to the same extent as if specifically set forth herein. In the
event of inconsistencies between the Base Indenture and this Second Supplement
with respect to the Series B-1 Certificates, the terms hereof shall govern.

     SECTION 1.02. DEFINITIONS AND MISCELLANEOUS. For all purposes of this
Second Supplement, except as otherwise expressly provided or unless the context
otherwise requires:

          (a)  Investment Certificates, Series B and Series B-1 shall be
     identical to each other in all relative rights, preferences and
     limitations, expect as expressly set forth herein and in the First
     Amendment.

          (b)  Capitalized terms used herein without definition have the
     meanings specified in the Base Indenture.

          (c)  The terms defined in this Article have the meanings assigned to
     them in this Article and include the plural as well as the singular.

          (d)  Unless the context otherwise requires, any reference to an
     "Article" or a "Section" refers to an Article or a Section, as the case may
     be, of this Second Supplement.

          (e)  The definition of "Outstanding" in the Based Indenture is
     replaced in its entirety with the definition of "Outstanding" provided
     herein.

          (f)  The first paragraph of Section 5-2 of the Base Indenture is
     replaced in its entirety with Section 2.02(b) hereof.

          (g)  The second paragraph of Section 11-7 of the Base Indenture is
     replaced in its entirety with Section 2.03 hereof.

     "INTEREST" means, with respect to an Original Issue Discount Security which
by its terms bears interest only after Maturity, interest payable after Maturity
as set forth in the Certificate.

     "ISSUE PRICE" means, with respect to a Series B-1 Certificate, the initial
issue price at which the Series B-1 Certificate is sold as set forth on the face
of the Certificate.

                                       3
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     "ORIGINAL ISSUE DISCOUNT" means, with respect to a Series B-1 Certificate,
the difference between the Issue Price and the Principal Amount at Maturity of
the Series B-1 Certificate, accreting as set forth in the applicable
Certificate.

     "ORIGINAL ISSUE DISCOUNT SECURITY" means any Series B-1 Certificate which
provides for an amount less than the stated principal amount thereof to be due
and payable upon declaration of acceleration of the Maturity thereof pursuant to
Section 5-2 of the Base Indenture, as amended by Section 2.02 hereof.

     "OUTSTANDING" when used with respect to Certificates, means, as of the date
of determination, all Certificates therefor authenticated and delivered under
this Indenture, except:

          (a)  Certificates theretofore cancelled by the Company;

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

          (c)  Certificates in exchange for or in lieu of which other
     Certificates have been authenticated and delivered pursuant to this
     Indenture; and

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Certificates have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders for quorum purposes, and for the purpose of making the
calculation required by TIA Section 313, (i) the principal amount of an Original
Issue Discount Security that may be counted in making such determination or
calculation and that shall be deemed to be Outstanding for such purpose shall be
equal to the amount of principal thereof that would be (or shall have been
declared to be) due and payable, at the time of such determination, upon a
declaration of acceleration of the maturity thereof pursuant to Section 5-2 of
the Base Indenture, and (ii) Certificates owned by the Company or of any other
obligor upon the Certificates or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making such calculation or
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Certificates which the Trustee knows to be so owned
shall be so disregarded. Certificates owned as provided in clause (ii) above
which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee's right so to
act with respect to such Certificates and that the pledgee is not the Company or
any other obligor upon the Certificates or any Affiliate of the Company or of
such other obligor.

     "PRINCIPAL AMOUNT AT MATURITY" means, with respect to any Series B-1
Certificate, the principal amount due at Maturity as set forth on the face of
the Certificate.

                                       4
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                                   ARTICLE II

                                THE CERTIFICATES

     SECTION 2.01. TERMS OF SERIES B-1 CERTIFICATES.

          (a)  There shall be hereby established a series of Certificates to be
     designated "Investment Certificates, Series B-1."

          (b)  The aggregate Principal Amount at Maturity of Series B-1
     Certificates, at any one time Outstanding shall not be limited and shall be
     payable as set forth on the applicable Series B-1 Certificate. The Series
     B-1 Certificates shall be issued in the maturities and denominations as
     determined by the Company and as set forth in the applicable Series B-1
     Certificate.

          (c)  The Series B-1 Certificates shall be issued with Original Issue
     Discount at an accretion rate determined by the Company and set forth in
     the applicable Series B-1 Certificate. The Series B- 1 Certificates shall
     accrue interest only as provided in the Series B-1 Certificate.

          (d)  The maturities, the accretion rate of Original Issue Discount and
     minimum denominations of Series B-1 Certificates may be changed at any time
     by the Company, but no such change will affect any Series B-1 Certificates
     issued prior to such change.

          (e)  Payment of the principal of and accreted Original Issue Discount,
     if any, on Series B-1 Certificates will be made at the office or agency of
     the Company maintained for that purpose in Spokane, Washington. All such
     payments shall be made 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. In the event of the death of any registered owner of a
     Series B-1 Certificate any party entitled to receive some or all of the
     proceeds of such Series B-1 Certificate may elect to have his or her share
     of such Series B-1 Certificate prepaid under the terms set out in the form
     of the Series B-1 Certificates in Exhibit A hereto.

          (f)  The Series B-1 Certificate shall be issued in the form of a
     Global Certificate, the form of which is included as Exhibit A hereto, and
     shall be executed by the Company and registered in the name of the Company
     or its nominee and authenticated by the Trustee. The Trustee shall, upon
     request by the Company, authenticate such amounts of Series B-1
     Certificates as is authorized by the Board of Directors of the Company.
     Such authentication of the Global Certificate shall satisfy the
     authentication requirement of the Indenture with respect to the Series B-1
     Certificates. The Company may amend and/or supplement the Global
     Certificate, and may increase and/or decrease the principal amount of the
     Global Certificate from time to time. The Trustee shall authenticate any
     endorsement to the Global Certificate to reflect such amendment,
     supplement, increase or decrease in accordance with instructions given by
     the Company. The Global Certificate, and any endorsements thereto shall be
     deposited with the Company.

                                       5
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          (g)  The Series B-1 Certificates may be issued to investors in book
     entry form, without the issuance of individual certificates, and without
     the requirement for authentication by the Trustee of such book entry
     investments. Investors who hold Series B-1 Certificates in book entry form
     shall be considered to be Certificateholders and shall have all the rights
     and privileges of a Certificateholder pursuant to the Indenture,
     notwithstanding that record of their Series B-1 Certificate investment is
     represented in book entry form. The Company shall maintain accurate records
     of the individual holders of such Certificates. The Company shall promptly
     provide the Trustee with a listing of all book entry holders of the Series
     B-1 Certificates at such times and from time to time, and in such format as
     the Trustee may reasonably request.

          (h)  With respect to the Global Certificate, the ownership of which
     shall be registered in the name of the Company or its nominee, except as
     otherwise provided in the Indenture as herein amended, the Trustee shall
     have no responsibility or obligation to any person for whom the Company or
     its nominee beneficially holds an interest in book entry form in the Global
     Certificate. Without limiting the generality of the foregoing, the Trustee
     shall have no responsibility or obligation with respect to (i) the accuracy
     of the records of the Company and its nominee with respect to the
     beneficial ownership interests of Certificateholders in the Global
     Certificate; (ii) the delivery to Certificateholders of any notice required
     to be given by the Company with respect to their book entry Certificates;
     (iii) the payment by the Company or its nominee to any Certificateholder,
     as shown on the books of the Company, of principal, accreted Original Issue
     Discount or interest with respect to an Investment Certificate; or (iv) any
     other action taken by the Company or its nominee as registered owner of the
     Global Certificate.

     SECTION 2.02. EVENTS OF DEFAULT.

          (a) "Event of Default,"  with respect to the Series B-1  Certificates,
     means any one of the events  specified below in this Section 2.02 (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 the principal of (or accretion of
          Original Issue Discount of) any Series B-1 Certificate, at its
          Maturity or upon acceleration or otherwise; or

               (ii) default in the performance, or breach, of any covenant or
          warranty of the Company with respect to Series B-1 Certificates, in
          the Indenture or this Second Supplement (other than a covenant or
          warranty a default in whose breach is elsewhere in this Section
          specifically dealt with), and continuance of such default or breach
          for a period of 60 days after there has been given, by registered or
          certified mail, to the Company by the Trustee or to the Company and
          the Trustee by the Holders of at least l0% in principal amount of the
          Outstanding Series B-1 Certificates, a written notice specifying such
          default or breach and requiring it to be remedied and stating that
          such notice is a "Notice of Default" hereunder; or

                                       6
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               (iii) the entry of a decree or order by a court having
          jurisdiction in the premises adjudging the Company a bankrupt or an
          insolvent, or approving as properly filed a petition seeking
          reorganization, arrangement, adjustment or composition of or in
          respect of the Company under any Federal bankruptcy laws or any other
          applicable Federal or State law, or appointing a receiver, liquidator,
          assignee, trustee, sequestrator (or other similar official) of the
          Company or of any substantial part of its property, or ordering the
          winding up or liquidation of its affairs, and the continuance of any
          such decree or order unstayed and in effect for a period of 60
          consecutive days; or

               (iv) the institution by the Company of proceedings to be
          adjudicated a bankrupt or an insolvent, or the consent by it to the
          institution of bankruptcy or insolvency proceedings against it, or the
          filing by it of a petition or answer or consent seeking reorganization
          or relief under any Federal bankruptcy laws or any other applicable
          Federal or State law, or the consent by it to the filing of any such
          petition or to the appointment of a receiver, liquidator, assignee,
          trustee, sequestrator (or other similar official) of the Company or of
          any substantial part of its property, or the making by it of an
          assignment for the benefit of creditors, or the admission by it in
          writing of its inability to pay its debts generally as they become
          due, or the taking of corporate action by the Company in furtherance
          of any such action.

          (b)  If an Event of Default occurs and is continuing, then and in
     every such case the Trustee or the Holders of not less than 25% in
     Principal Amount at Maturity of the Outstanding Series B-1 Certificates may
     declare all the Series B-1 Certificates to be immediately due and payable
     at the Issue Price plus the Original Issue Discount accreted up to the date
     of default, by a notice in writing to the Company (and to the Trustee if
     given by the Holders of the Series B-1 Certificates), and upon any such
     declaration such principal or specified portion thereof shall become
     immediately due and payable.

     SECTION 2.03. CERTIFICATES PAYABLE ON REDEMPTION DATE. If the principal
amount of any Class B-1 Certificate surrendered for redemption shall not be so
repaid upon surrender thereof, such principal amount (together with Original
Issue Discount, if any, thereon accreted to such Redemption Date) shall, until
paid, continue to accrete at the accretion rate set forth in such Class B-1
Certificate until its Maturity and shall thereafter bear interest at a rate set
forth in the Certificate.

     SECTION 2.04. RIGHT OF REDEMPTION. Notwithstanding anything to the contrary
contained in the Indenture or this Second Supplement, the Series B-1
Certificates are not redeemable prior to Maturity; the Company may, however, pay
principal and accreted Original Issue Discount on such Certificates either upon
mutual agreement between the Holders of a Series B-1 Certificate, and the
Company or as provided in the Base Indenture or this Second Supplement in the
event of the death of any registered owner or any registered joint owner without
such payment constituting a redemption.

                                       7
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                                  ARTICLE III

                                  MISCELLANEOUS

     SECTION 3.01. REGULATION OF INTEREST RATES. The Company hereby agrees that
it will actively resist any attempts to claim and will not voluntarily claim,
the benefit of any interest rate regulation law against any Certificateholder.

     SECTION 3.02. AMENDMENT REQUIRING CONSENT OF CERTIFICATEHOLDERS. Without
the consent of the Holders of each Outstanding Series B-1 Certificate affected
thereby, the Company and the Trustee shall not, by supplemental indenture or
otherwise, reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5-2 of the Base Indenture or the amount
thereof provable in bankruptcy pursuant to Section 5-4 of the Base Indenture.

                                       8
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     IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental
Indenture to be duly executed all as of the day and year first above written.

                                       SUMMIT SECURITIES, INC.

                                       By /s/ Tom Turner
                                         ----------------------------------
                                       Name Tom Turner
                                           --------------------------------
                                       Title President
                                            -------------------------------

(Corporate Seal)

Attest:

By /s/ Michael Agostinelli
  ----------------------------------
Name Michael Agostinelli
    --------------------------------
Title General Counsel
     -------------------------------

                                       U.S. BANK TRUST NATIONAL ASSOCIATION,
                                          as Trustee

                                       By /s/ Sherrie L. Pantle
                                         ----------------------------------
                                       Name Sherrie L. Pantle
                                           --------------------------------
                                       Title Vice President
                                            -------------------------------

(Corporate Seal)

Attest:

By /s/ Carolyn Whalen
  ----------------------------------
Name Carolyn Whalen
    --------------------------------
Title Assistant Vice President
     -------------------------------

                                       9
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STATE OF WASHINGTON           )
                              )  ss.
COUNTY OF SPOKANE             )

     On this 27th day of February, 2001, before me personally appeared Tom
Turner, to me known to be the President of Summit Securities, Inc., the
corporation that executed the within and foregoing instrument, and
acknowledged said instrument to be the free and voluntary act and deed of
said corporation, for the uses and purposes therein mentioned, and on oath
stated that he was authorized to execute said instrument and that the seal
affixed is the corporate seal of said corporation.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.

                                       /s/ Larraine Tuttle
(SEAL)                                 -------------------------------------
                                       NOTARY PUBLIC in and for the State of
                                       Washington, residing at Spokane

                                       10
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STATE OF WASHINGTON           )
                              )  ss.
COUNTY OF SEATTLE             )

     On this 28th day of February, 2001, before me personally appeared
Sherrie L. Pantle, to me known to be the Vice President of U.S. Bank Trust
National Association, the national banking association that executed the
within and foregoing instrument, and acknowledged said instrument to be the
free and voluntary act and deed of said association, for the uses and
purposes therein mentioned, and on oath stated that he was authorized to
execute said instrument and that the seal affixed is the corporate seal of
said corporation.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.

                                       /s/  Glendly Yuen
(SEAL)                                 -------------------------------------
                                       NOTARY PUBLIC in and for the State of
                                       Washington, residing at Seattle

                                       11
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                                    EXHIBIT A

                        [FORM OF SERIES B-1 CERTIFICATES]

FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE
CODE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THIS SECURITY IS ____% OF ITS
PRINCIPAL AMOUNT. THE ISSUE DATE IS __________, 20__

                             SUMMIT SECURITIES, INC.
                 601 W. First Avenue, Spokane, Washington 99201
                       Investment Certificate, Series B-1

Issued To
                              ------------------------------------------
Issue Price
                              ------------------------------------------
Original Issue Discount
                              ------------------------------------------
Principal Amount at Maturity
                              ------------------------------------------
Issue Date
                              ------------------------------------------
Maturity Date
                              ------------------------------------------
Annual Accretion Rate
                              ------------------------------------------
Certificate Number
                              ------------------------------------------

     THE CERTIFICATE

     This is a duly authorized Certificate of Summit Securities, Inc.
("Summit"). This Certificate is issued under an Indenture dated as of November
15, 1990 and a Second Supplemental Indenture dated as of February __, 2001
(Collectively, the "Indenture") between Summit and U.S. Bank Trust National
Association as Trustee (the "Trustee"). The Indenture permits Summit to issue an
unlimited amount of Certificates, the terms of which may vary according to
series. This Certificate is of the series stated above; that series is limited
in aggregate principal amount as stated in the Indenture (or supplemental
indentures). The Indenture (and supplemental indentures) contains statements of
the rights of the Certificateholders, Summit and the Trustee and provisions
concerning authentication and delivery of the Certificates. Definitions of
certain terms used in this Certificate are also found in the Indenture (and
supplemental indentures).

     PAYMENT OF PRINCIPAL AMOUNT AT MATURITY

     For value received, Summit promises to pay the Principal Amount at Maturity
of this Certificate at the Maturity Date stated above. Payment will be made to
the Person to whom this Certificate is issued, or registered assigns.

     PAYMENT OF INTEREST

     This Certificate shall not bear interest, except as specified in this
paragraph. If the Principal Amount at Maturity hereof or any portion of such
Principal Amount at Maturity is not paid when due (whether upon acceleration or
otherwise), then the overdue amount shall, to the

                                      A-1
<PAGE>

extent permitted by law, bear interest at a rate of __% per annum, compounded
semi-annually, which interest shall accrue from the date such overdue amount was
originally due to the date of payment of such amount, including interest
thereon, has been made or duly provided for.

     Summit will pay interest to the Person in whose name this Certificate (or
one or more Predecessor Certificates) is registered on the books of Summit, or
registered assigns.

     PAYMENT PRIOR TO MATURITY

     Upon payment of this Certificate prior to Maturity pursuant to the terms of
the Indenture specified in the Indenture, the Holder is entitle to payment in an
amount equal to the Issue Price plus accreted Original Issue Discount. Original
Issue Discount shall accrete from the date of issuance of the Certificate until
the date of determination at the rate specified on the cover page of this
Certificate, compounded semi-annually.

     PREPAYMENT ON DEATH

     In the event of a Certificateholder's death, any Person entitled to receive
some or all of the proceeds of this Certificate may elect to have his or her
Certificate prepaid in full, in an amount that is equal to the Issue Price plus
the accreted Original Issue Discount, payable in five consecutive equal monthly
installments. Original Issue Discount will continue to accrete at the accretion
rate specified on the cover page hereof on the declining principal balance of
that Certificate. Any request for prepayment must be made in writing to Summit.
The request must be accompanied by the Certificate and evidence, satisfactory to
Summit, of the Certificateholder's death. Before Summit prepays the Certificate,
it may require additional documents or other material it considers necessary to
establish the Persons entitled to receive some or all of the proceeds of the
Certificate. Summit may also require proof of other facts relevant to its
obligation to prepay the Certificate in the event of death.

     MISCELLANEOUS

     The provisions on the reverse are part of this Certificate.

     This Certificate is not entitled to any benefit under the Indenture nor is
this Certificate valid or obligatory for any purpose unless the certificate of
authentication below has been executed by the Trustee by manual signature.

     This Certificate is not insured by the United States government, the State
of Idaho nor any agency thereof.

                                      A-2
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     IN WITNESS WHEREOF, Summit has caused this Certificate to be duly executed
under its corporate seal.

                                       SUMMIT SECURITIES, INC.

(Corporate Seal)

Attest:                                By:
       -----------------------            ---------------------------
            Secretary or                    Chairman of the Board,
        Assistant Secretary               President or Vice President

                                      A-3
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                       U.S. BANK TRUST NATIONAL ASSOCIATION,
                                       as Trustee

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

                                      A-4
<PAGE>

             [FORM OF REVERSE OF INVESTMENT CERTIFICATE, SERIES B-1]

     TRANSFER AND EXCHANGE OF GLOBAL CERTIFICATE

     Transfer and exchange of this Global Certificate is conditioned by certain
provisions in the Indenture, as amended. To effect a transfer, the registered
owner must surrender this Certificate at the Company's office or agency in
Spokane, Washington. This Certificate must be duly endorsed or accompanied by a
written instrument of transfer satisfactory to the Company. Upon transfer, one
or more new Certificates of the same series, of authorized denominations and for
the same aggregate principal amount will be issued to the designated transferee
or transferees. Prior to due presentment for registration of transfer, the
Company, the Trustee or any of their agents may treat any Person in whose name
this Certificate is registered as the owner of this Certificate, regardless of
notice to the contrary or whether this Certificate might be overdue.

     This Global Certificate is issuable only as a registered Certificate; it
does not bear coupons. As provided in the Indenture, this Global Certificate is
exchangeable for other Global Certificates of the same series of authorized
denominations with the same aggregate principal amount. To effect an exchange,
the registered owner must surrender this Certificate at the Company's office or
agency in Spokane, Washington. The Certificate must be duly endorsed or
accompanied by a written instrument of exchange satisfactory to the Company.

     No service charge will be made for a transfer or exchange, but Summit may
require payment of a sum sufficient to cover any governmental charge payable in
connection with such transaction.

     AMENDMENT OF THE INDENTURE; WAIVER OF RIGHTS

     With certain exceptions, the Indenture may be amended, the obligations and
rights of Summit may be modified and the rights of the Certificateholders may be
modified by Summit at any time with the consent of the Holders of 66-2/3% in
aggregate principal amount of the Certificates at the time Outstanding. The
Indenture allows the Holders of specified percentages in aggregate principal
amount of the Certificates of a particular series to waive compliance by Summit
with certain Indenture provisions and to waive past defaults and their
consequences on behalf of all the Holders of Certificates of that series. Any
such consent or waiver by the Holder of this Certificate will be binding upon
that Holder. The consent or waiver will also be binding upon all future Holders
of this Certificate and of any Certificate issued upon the transfer of, or in
exchange for or in lieu of this Certificate, whether or not that consent or
waiver is noted upon the Certificate.

     EVENTS OF DEFAULT

     If an Event of Default occurs, the Issue Price and the accreted Original
Issue Discount of all the Certificates may be declared due and payable as
provided in the Indenture.

                                      A-5
<PAGE>

     FORM OF PAYMENT

     Payment on the Certificates will be made at the office or agency of Summit
maintained for that purpose in Spokane, Washington. Payment will be made in coin
or currency of the United States of America that is legal tender for payment of
public and private debts at the time of payment.

     BUSINESS DAYS

     Whenever any Interest Payment Date, the Stated Maturity of this Certificate
or any date on which any Defaulted Interest is proposed to be paid is not a
Business Day, the appropriate payment or compounding of interest, accretion of
Original Issue Discount or principal may be made on the next succeeding Business
Day without accrual of additional interest or accretion of additional Original
Issue Discount.

     CERTAIN DEFINITIONS

     Summit is an Idaho corporation. The terms "Summit" and "Company" include
any successor corporation under the Indenture. The term "Trustee" includes any
successor trustee under the Indenture.

                                      A-6<PAGE>

          STATEMENT OF RIGHTS, DESIGNATIONS AND PREFERENCES OF VARIABLE
                                      RATE
                      CUMULATIVE PREFERRED STOCK, SERIES R

     1.   Name of Corporation: Summit Securities, Inc.

     2.   Copy of resolution establishing and designating Variable Rate
Cumulative Preferred Stock, Series R, and determining the relative rights and
preferences thereof: Attached hereto.

     3.   The undersigned does hereby certify that the attached resolution was
duly adopted by the Board of Directors of the corporation on February 12, 2001.

     Dated this first day of March, 2001.

                                       /s/ Greg Strate
                                       -----------------------------------
                                       Greg Strate, Secretary
<PAGE>

                             SUMMIT SECURITIES, INC.
                PREFERRED STOCK, SERIES R, AUTHORIZING RESOLUTION

     Resolved, that pursuant to the authority expressly granted and vested in
the Board of Directors (the "Board") of this Corporation by its Articles of
Incorporation, as amended, a subseries of preferred stock, Series R of the
Corporation be, and is hereby, established which will have a par value of $10.00
per share, designated "Variable Rate Cumulative Preferred Stock, Series R"
(hereafter called "Series R Preferred Stock"), and which shall have rights,
preferences, qualifications and restrictions as follows:

     1.   DIVIDENDS.

          (a)  Dividends (or other distributions deemed dividends for purposes
     of this resolution) on the issued and outstanding shares of Series R
     Preferred Stock shall be declared and paid monthly at a percentage rate per
     annum of the liquidation preference of $100.00 per share equal to the
     "Distribution Rate," as hereinafter defined, or such greater rate as may be
     determined by the Corporation's Investment Committee (the "Committee").
     Notwithstanding the foregoing, the Distribution Rate for any monthly
     dividend period shall, in no event, be less than 6% per annum or greater
     than 14% per annum. Such dividends shall be cumulative from the date of
     original issue of each share and shall be payable, when and as declared by
     the Board, on such dates as the Board deems advisable, but at least once a
     year, commencing March 1, 2001. Each such dividend shall be paid to the
     holders of record of shares of Series R Preferred Stock as they appear on
     the stock register of the Corporation on such record date as shall be fixed
     by the Board in advance of the payment date thereof. Dividends on account
     of arrears for any past Dividend Periods may be declared and paid at any
     time, without reference to any regular dividend payment date, to holders of
     record on such date as shall be fixed by the Board in advance of the
     payment date thereof.

          (b)  Except as provided below in this section, the Distribution Rate
     for any monthly dividend period shall be the highest of the Treasury Bill
     Rate, the Ten Year Constant Maturity Rate and the Twenty Year Constant
     Maturity Rate (each as defined in Exhibit A attached hereto and
     incorporated by reference herein) plus 0.10%. In the event that the Board
     determines in good faith that for any reason one or more of such rates
     cannot be determined for any dividend period, then the Distribution Rate
     for such dividend period shall be the higher of whichever of such rates can
     be so determined. In the event that the Board determines in good faith that
     none of such rates can be determined for any dividend period, then the
     Distribution Rate in effect for the preceding dividend period shall be
     continued for such dividend period. The Treasury Bill Rate, the Ten Year
     Constant Maturity Rate and the Twenty Year Constant Maturity Rate shall
     each be rounded to the nearest five hundredths of a percentage point.

          (c)  No dividend shall be paid upon, or declared or set apart for, any
     share of Series R Preferred Stock for any Dividend Period unless at the
     same time a like dividend shall be paid upon, or be declared and set apart
     for, all shares of Series R Preferred Stock then issued and outstanding.
     Holders of Series R Preferred Stock shall not be entitled to any dividend,
     whether payable in cash, property or stock, in excess of full cumulative
<PAGE>

     dividends as herein provided. No interest, or sum of money in lieu of
     interest, shall be payable in respect of any dividend payment or payments
     which may be in arrears on Series R Preferred Stock.

          (d)  Dividends will be payable in additional whole or fractional
     shares of Series R Preferred Stock. The number of fractional shares of
     Series R Preferred Stock to be issued for each full monthly Dividend Period
     for each Series R share shall be equal to one share multiplied by the
     Distribution Rate for such monthly Dividend Period, divided by 12.
     Dividends payable for any period less than a full monthly Dividend Period
     shall be computed on the basis of 30- day months and a 360-day year. The
     Distribution Rate with respect to each monthly Dividend Period shall be
     calculated as promptly as practicable by the Corporation according to the
     method provided herein. The Corporation will cause notice of such
     Distribution Rate to be enclosed with the dividend notice mailed to the
     holders of shares of Series R Preferred Stock.

          (e)  So long as any shares of Series R Preferred Stock are
     outstanding, (i) no dividend (other than a dividend in common stock or in
     any other stock ranking junior to Series R Preferred Stock as to dividends
     and upon liquidation and other than as provided in the foregoing section
     1(c)) shall be declared or paid or set aside for payment; (ii) no other
     distribution shall be declared or made upon common stock or upon any other
     stock ranking junior to or on a parity with Series R Preferred Stock as to
     dividends or upon liquidation; and (iii) no common stock or any other stock
     of the Corporation ranking junior to or on a parity with Series R Preferred
     Stock as to dividends or upon liquidation shall be redeemed, purchased or
     otherwise acquired by the Corporation for any consideration (or any monies
     paid to or made available for a sinking fund for the redemption of any
     shares of any such stock) except by conversion into or exchange for stock
     of the Corporation ranking junior to Series R Preferred Stock as to
     dividends and upon liquidation unless, in each case, the full cumulative
     dividends on all outstanding shares of Series R Preferred Stock shall have
     been paid or declared and set apart for all past dividend payment periods.

          (f)  The holders of Series R Preferred Stock shall be entitled to
     receive, when and as declared by the Board, dividend distributions out of
     the authorized preferred stock of the Corporation legally available
     therefor. Any distribution made which may be deemed to have been made out
     of the capital surplus of Series R Preferred Stock shall not reduce either
     the redemption process or the liquidation rights as hereafter specified.

     2.   REDEMPTION.

          (a)  REDEMPTION AT THE OPTION OF THE CORPORATION. The Corporation, at
     its option, may redeem shares of Series R Preferred Stock, in whole or in
     part, at any time or from time to time, at redemption prices hereafter set
     forth plus accrued and unpaid dividends to the date fixed for redemption.

               (i)  In the event of a redemption of shares pursuant to this
          subsection, the redemption price shall be $100.00 per share.

                                       2
<PAGE>

               (ii) In the event that fewer than all of the outstanding shares
          of Series R Preferred Stock are to be redeemed, the number of shares
          to be redeemed shall be determined by the Corporation and the shares
          to be redeemed shall be determined by lot, or pro rata, or by any
          other method, as may be determined by the Corporation in its sole
          discretion to be equitable.

               (iii) In the event that the Corporation shall redeem shares
          hereunder, notice of such redemption shall be given by first class
          mail, postage prepaid, mailed not less than 30 days or more than 60
          days prior to the redemption date, to each holder of record of the
          shares to be redeemed, at such holder's address as it appears on the
          stock register of the Corporation. Each such notice shall state: (A)
          the redemption date; (B) the number of shares to be redeemed and, if
          fewer than all shares held by such holder are to be redeemed, the
          number of such shares to be redeemed from such holder; (C) the
          redemption price; (D) the place or places where certificates for such
          shares are to be surrendered for payment of the redemption price; and
          (E) that dividends on the shares to be redeemed will cease to accrue
          on such redemption date.

               (iv) Notice having been mailed as aforesaid, from and after the
          redemption date (unless default shall be made by the Corporation in
          providing money for the payment of the redemption price), dividends on
          the shares so called for redemption shall no longer be deemed to be
          outstanding, and all rights of the holders thereof as stockholders of
          the Corporation (except the right to receive from the Corporation the
          redemption price) shall cease. Upon surrender in accordance with said
          notice of the certificates representing shares redeemed (properly
          endorsed or assigned for transfer, if the Board shall so require and
          the notice shall so state), such shares shall be redeemed by the
          Corporation at the redemption price aforesaid. In case fewer than all
          of the shares represented by any such certificate are redeemed, a new
          certificate shall be issued representing the unredeemed shares without
          cost to the holder thereof.

          (b)  DISCRETIONARY REDEMPTION UPON REQUEST OF THE HOLDER. The shares
     of Series R Preferred Stock are not redeemable at the option of the holder.
     If, however, the Corporation receives an unsolicited written request for
     redemption of shares from any holder, the Corporation may, in its sole
     discretion and subject to the limitations described below, accept such
     shares for redemption. Any shares so tendered, which the Corporation in its
     discretion, allows for redemption, shall be redeemed by the Corporation
     directly, and not from or through a broker or dealer, at $99.00 per share,
     plus any declared but unpaid dividends through the date of redemption.

          The Corporation may not redeem any such shares tendered for redemption
     if to do so would be unsafe or unsound in light of the Corporation's
     financial condition (including its liquidity position); if payment of
     interest or principal on any outstanding instrument of indebtedness is in
     arrears or in default; or if payment of any dividend on Series R Preferred
     Stock or share of any stock of the Company ranking on parity with or senior
     to the Series R Preferred Stock is in arrears as to dividends.

                                       3
<PAGE>

          (c)  Any shares of Series R Preferred Stock which shall at any time
     have been redeemed shall, after such redemption, have the status of
     authorized but unissued shares of preferred stock, without designation as
     to series until such shares are designated as part of a particular series
     by the Board.

          (d)  Notwithstanding the foregoing provisions of this Section 2, if
     any dividends on Series R Preferred Stock are in arrears, no shares of
     Series R Preferred Stock shall be redeemed unless all outstanding shares of
     Series R Preferred Stock are simultaneously redeemed, and the Corporation
     shall not purchase or otherwise acquire any shares of Series R Preferred
     Stock; provided, however, that the foregoing shall not prevent the purchase
     or acquisition of shares of Series R Preferred Stock pursuant to a purchase
     or exchange offer made on the same terms to holders of all of the
     outstanding shares of Series R Preferred Stock. Notwithstanding anything
     herein to the contrary, no share of Series R Preferred Stock may be
     redeemed prior to the expiration of 3 years from the date of issuance of
     that share, except in the case of death or a major medical emergency.

     3.   CONVERSION OR EXCHANGE. The holders of shares of Series R Preferred
Stock shall not have any rights to convert such shares into or exchange such
shares for shares of any other class or series of any class of securities of the
Corporation.

     4.   VOTING. Except as required from time to time by law, the shares of
Series R Preferred Stock shall have no voting powers. Provided, however,
notwithstanding the foregoing, that whenever and as often as dividends payable
on any shares of Series R Preferred Stock shall be in arrears in an amount equal
to 24 full monthly dividends or more per share, the holders of Series R
Preferred Stock together with the holders of any other preferred stock then
outstanding, voting separately and as a single class shall be entitled to elect
a majority of the Board of Directors of the Corporation. Such right shall
continue until all dividends in arrears on preferred stock have been paid in
full.

     5.   LIQUIDATION RIGHTS.

          (a)  Upon the dissolution, liquidation or winding up of the
     Corporation, the holders of the shares of Series R Preferred Stock shall be
     entitled to receive out of the assets of the Corporation, before any
     payment or distribution shall be made on the Common Stock, or on any other
     class of stock ranking junior to Series R Preferred Stock, upon
     liquidation, the amount of $100.00 per share, plus a sum equal to all
     dividends (whether or not earned or declared) on such shares accrued and
     unpaid thereon to the date of final distribution.

          (b)  Neither the sale, lease or conveyance of all or substantially all
     the property or business of the Corporation, nor the merger or
     consolidation of the Corporation into or with any other corporation or the
     merger or consolidation of any other corporation into or with the
     Corporation, shall be deemed to be a dissolution, liquidation or winding
     up, voluntary or involuntary, for the purposes of this Section.

                                       4
<PAGE>

          (c)  After the payment to the holders of the shares of Series R
     Preferred Stock of the full preferential amounts provided for in this
     Section, the holders of Series R Preferred Stock as such shall have no
     right or claim to any of the remaining assets of the Corporation.

          (d)  In the event the assets of the Corporation available for
     distribution to the holders of shares of Series R Preferred Stock upon any
     dissolution, liquidation or winding up of the Corporation, whether
     voluntary or involuntary, shall be insufficient to pay in full all amounts
     to which such holders are entitled pursuant to this Section, no such
     distribution shall be made on account of any shares or any other series of
     preferred stock ranking on parity with the Series R Preferred Stock or any
     other class of stock ranking on a parity with the shares of Series R
     Preferred Stock upon such dissolution, liquidation or winding up, unless
     proportionate distributive amounts shall be paid on account of the shares
     of Series R Preferred Stock, ratably in accordance with the sums which
     would be payable in such distribution if all sums payable in respect of the
     shares of all series of preferred stock and any such other class of stock,
     both as aforesaid, were discharged in full.

     6.   PRIORITIES. For purposes of this Resolution, any stock of any class or
classes of the Corporation shall be deemed to rank:

          (a)  Prior to the shares of Series R Preferred Stock, either as to
     dividends or upon liquidation if the holders of such class or classes shall
     be entitled to the receipt of dividends or of amounts distributable upon
     dissolution, liquidation or winding up of the Corporation, as the case may
     be, in preference or priority to the holders of shares of Series R
     Preferred Stock.

          (b)  On a parity with shares of Series R Preferred Stock, either as to
     dividends or upon liquidation, whether or not the dividend rates, dividend
     payment dates or redemption or liquidation prices per share or sinking fund
     provisions, if any, are different from those of Series R Preferred Stock,
     if the holder of such stock shall be entitled to the receipt of dividends
     or of amounts distributable upon dissolution, liquidation or winding up of
     the Corporation, as the case may be, in proportion to their respective
     dividend rates or liquidation prices, without preference or priority, one
     over the other, as between the holder of such stock and the holders of
     Series R Preferred Stock; and

          (c)  Junior to shares of Series R Preferred Stock, either as to
     dividends or upon liquidation, if the holders of shares of Series R
     Preferred Stock shall be entitled to receipt of dividends or of amounts
     distributable upon dissolution, liquidation or winding up of the
     Corporation, as the case may be, in preference or priority to the holders
     of shares of such class or classes.

     7.   RANKING AND SUBORDINATION. The Series R Preferred Stock shall rank on
parity with the Series T Preferred Stock of the Corporation. The Series R
Preferred Stock shall be subordinate in right of payment for distributions and
upon liquidation of the Corporation to the Corporation's Series S Preferred
Stock.

                                       5
<PAGE>

     8.   SHARES NON-ASSESSABLE. Any and all shares of Series R Preferred Stock
issued, and for which the full consideration has been paid or delivered, shall
be deemed fully paid stock and the holder of such shares shall not be liable for
any further call or assessment or any other payment thereon.

     9.   PRE-EMPTIVE RIGHTS. Holders of Series R Preferred Stock shall have no
pre-emptive rights to acquire additional shares of Series R Preferred Stock.

                                       6
<PAGE>

                                    EXHIBIT A

TREASURY BILL RATE

     Except as provided below in this paragraph, the "Treasury Bill Rate" for
each dividend period will be the arithmetic average of the two most recent
weekly per annum market discount rates (or the one weekly per annum market
discount rate, if only one such rate shall be published during the relevant
Calendar Period (as defined below)) for three-month U.S. Treasury bills, as
published weekly by the Federal Reserve Board during the Calendar Period that
begins 24 days prior to the first day of the dividend period for which the
dividend rate on Preferred Stock Series R, is being determined. In the event
that the Federal Reserve Board does not publish such a weekly per annum market
discount rate during any such Calendar Period, then the Treasury Bill Rate for
the related dividend period shall be the arithmetic average of the two most
recent weekly per annum market discount rates (or the one weekly per annum
market discount rate, if only one such rate shall be published during the
relevant Calendar Period) for three-month U.S. Treasury bills, as published
weekly during such Calendar Period by any Federal Reserve Bank or by any U.S.
Government department or agency selected by the Company. In the event that a per
annum market discount rate for three-month U.S. Treasury bills shall not be
published by the Federal Reserve Board or by any Federal Reserve Bank or by any
U.S. Government department or agency during such Calendar Period, then the
Treasury Bill Rate for such dividend period shall be the arithmetic average of
the two most recent weekly per annum market discount rates (or the one weekly
per annum market discount rate, if only one such rate shall be published during
the relevant Calendar Period) for all of the U.S. Treasury bills then having
maturities of not less than 80 nor more than 100 days, as published during such
Calendar Period by the Federal Reserve Board or, if the Federal Reserve Board
shall not publish such rates, by any Federal Reserve Bank or by any U.S.
Government department or agency selected by the Company. In the event that the
Company determines in good faith that for any reason no such U.S. Treasury bill
rates are published as provided above during such Calendar Period, then the
Treasury Bill Rate for such dividend period shall be the arithmetic average of
the per annum market discount rates based upon bids during such Calendar Period
for each of the issues of marketable non-interest bearing U.S. Treasury
securities with a maturity of not less than 80 nor more than 100 days from the
date of each such quotation, as quoted daily for each business day in New York
City (or less frequently if daily quotations shall not be generally available)
to the Company by at least three recognized primary U.S. Government securities
dealers selected by the Company. In the event that the Company determines in
good faith that for any reason the Company cannot determine the Treasury Bill
Rate for any dividend period as provided above in this paragraph, the Treasury
Bill Rate for such dividend period shall be the arithmetic average of the per
annum market discount rates based upon the closing bids during such Calendar
Period for each of the issues of marketable interest-bearing U.S. Treasury
securities with a maturity of not less than 80 nor more than 100 days from the
date of each such quotation, as quoted daily for each business day in New York
City (or less frequently if daily quotations shall not be generally available)
to the Company by at least three recognized primary U.S. Government securities
dealers selected by the Company.

                                      A-1
<PAGE>

TEN YEAR CONSTANT MATURITY RATE

     Except as provided below in this paragraph, the "Ten Year Constant Maturity
Rate" for each dividend period shall be the arithmetic average of the two most
recent weekly per annum Ten Year Average Yields (or the one weekly per annum Ten
Year Average Yield, if only one such Yield shall be published during the
relevant Calendar Period as provided below), as published weekly by the Federal
Reserve Board during the Calendar Period that begins 24 days prior to the first
day of the dividend period for which the dividend rate on Preferred Stock,
Series R is being determined. In the event that the Federal Reserve Board does
not publish such a weekly per annum Ten Year Average Yield during such Calendar
Period, then the Ten Year Constant Maturity Rate for such dividend period shall
be the arithmetic average of the two most recent weekly per annum Ten Year
Average Yields (or the one weekly per annum Ten Year Average Yield, if only one
such Yield shall be published during such Calendar Period), as published weekly
during such Calendar Period by any Federal Reserve Bank or by any U.S.
Government department or agency selected by the Company. In the event that a per
annum Ten Year Average Yield shall not be published by the Federal Reserve Board
or by any Federal Reserve Bank or by any U.S. Government department or agency
during such Calendar Period, then the Ten Year Constant Maturity Rate for such
dividend period shall be the arithmetic average of the two most recent weekly
per annum average yields to maturity (or the one weekly average yield to
maturity, if only one such yield shall be published during the relevant Calendar
Period) for all of the actively traded marketable U.S. Treasury fixed interest
rate securities (other than Special Securities (as defined below)) then having
maturities of not less than eight nor more than 12 years, as published during
such Calendar Period by the Federal Reserve Board or, if the Federal Reserve
Board shall not publish such yields, by any Federal Reserve Bank or by any U.S.
Government department or agency selected by the Company. In the event that the
Company determines in good faith that for any reason the Company cannot
determine the Ten Year Constant Maturity Rate for any dividend period as
provided above in this paragraph, then the Ten Year Constant Maturity Rate for
such dividend period shall be the arithmetic average of the per annum average
yields to maturity based upon the closing bids during such Calendar Period for
each of the issues of actively traded marketable U.S. Treasury fixed interest
rate securities (other than Special Securities) with a final maturity date not
less than eight nor more than 12 years from the date of each such quotation, as
quoted daily for each business day in New York City (or less frequently if daily
quotations shall not be generally available) to the Company by at least three
recognized primary U.S. Government securities dealers selected by the Company.

TWENTY YEAR CONSTANT MATURITY RATE

     Except as provided below in this paragraph, the "Twenty Year Constant
Maturity Rate" for each dividend period shall be the arithmetic average of the
two most recent weekly per annum Twenty Year Average Yields (or the one weekly
per annum Twenty year Average Yield, if only one such Yield shall be published
during the relevant Calendar Period), as published weekly by the Federal Reserve
Board during the Calendar Period that begins 24 days prior to the first day of
the dividend period for which the dividend rate on Preferred Stock, Series R is
being determined. In the event that the Federal Reserve Board does not publish
such a weekly per annum Twenty Year Average Yield during such Calendar Period,
then the Twenty Year Constant Maturity Rate for such dividend period shall be
the arithmetic average of the two most recent

                                      A-2
<PAGE>

weekly per annum Twenty Year Average Yields (or the one weekly per annum Twenty
Year Average Yield, if only one such Yield shall be published during such
Calendar Period), as published weekly during such Calendar Period by any Federal
Reserve Bank or by any U.S. Government department or agency selected by the
Company. In the event that a per annum Twenty Year Average Yield shall not be
published by the Federal Reserve Board or by any Federal Reserve Bank or by any
U.S. Government department or agency during such Calendar Period, then the
Twenty Year Constant Maturity Rate for such dividend period shall be the
arithmetic average of the two most recent weekly per annum average yields to
maturity (or the one weekly average yield to maturity, if only one such yield
shall be published during such Calendar Period) for all of the actively traded
marketable U.S. Treasury fixed interest rate securities (other than Special
Securities) then having maturities of not less than 18 nor more than 22 years,
as published during such Calendar Period by the Federal Reserve Board or, if the
Federal Reserve Board shall not publish such yields, by any Federal Reserve Bank
or by any U.S. Government department or agency selected by the Company. In the
event that the Company determines in good faith that for any reason the Company
cannot determine the Twenty Year Constant Maturity Rate for any dividend period
as provided above in this paragraph, then the Twenty Year Constant Maturity Rate
for such dividend period shall be the arithmetic average of the per annum
average yields to maturity based upon the closing bids during such Calendar
Period for each of the issues of actively traded marketable U.S. Treasury fixed
interest rate securities (other than Special Securities) with a final maturity
date not less than 18 nor more than 22 years from the date of each such
quotation, as quoted daily for each business day in New York City (or less
frequently if daily quotations shall not be generally available) to the Company
by at least three recognized primary U.S. Government securities dealers selected
by the Company.

     As used herein, the term "Calendar Period" means a period of 14 calendar
days; the term "Special Securities" means securities which may, at the option of
the holder, be surrendered at face value in payment of any federal estate tax or
which provide tax benefits to the holder and are priced to reflect such tax
benefits or which were originally issued at a deep or substantial discount; the
term "Ten Year Average Yield" means the average yield to maturity for actively
traded marketable U.S. Treasury fixed interest rate securities (adjusted to
constant maturities of ten years); and the term "Twenty Year Average Yield"
means the average yield to maturity for actively traded marketable U.S. Treasury
fixed interest rate securities (adjusted to constant maturities of 20 years).

                                      A-3

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