Document:

EXHIBIT 4.5

 

 

 

JOHN DEERE OWNER TRUST 2005

 

Class A-1 3.396% Asset Backed Notes

 

Class A-2 3.79% Asset Backed Notes

 

Class A-3 3.98% Asset Backed Notes

 

Class A-4 4.16% Asset Backed Notes

 

 

 

 

INDENTURE

 

Dated as of May 15, 2005

 

 

 

THE BANK OF NEW YORK

 

Indenture Trustee

 

 

 

 

Table of Contents

 

	
  ARTICLE I

  
	
   

  	
   

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  
	
  SECTION 1.01. Definitions

  	
   

  
	
  SECTION 1.02. Incorporation by
  Reference of Trust Indenture Act

  	
   

  
	
  SECTION 1.03. Rules of
  Construction

  	
   

  
	
  SECTION 1.04. Calculations of
  Interest

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  
	
  SECTION 2.01. Form

  	
   

  
	
  SECTION 2.02. Execution,
  Authentication and Delivery

  	
   

  
	
  SECTION 2.03. Temporary Notes

  	
   

  
	
  SECTION 2.04. Registration;
  Registration of Transfer and Exchange

  	
   

  
	
  SECTION 2.05. Mutilated,
  Destroyed, Lost or Stolen Notes

  	
   

  
	
  SECTION 2.06. Persons Deemed
  Owner

  	
   

  
	
  SECTION 2.07. Payment of
  Principal and Interest; Defaulted Interest

  	
   

  
	
  SECTION 2.08. Cancellation

  	
   

  
	
  SECTION 2.09. Release of
  Collateral

  	
   

  
	
  SECTION 2.10. Book-Entry Notes

  	
   

  
	
  SECTION 2.11. Notices to
  Clearing Agency

  	
   

  
	
  SECTION 2.12. Definitive Notes

  	
   

  
	
  SECTION 2.13. Notes as
  Indebtedness for Tax Purposes

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  
	
  SECTION 3.01. Payment of
  Principal and Interest

  	
   

  
	
  SECTION 3.02. Maintenance of
  Office or Agency

  	
   

  
	
  SECTION 3.03. Money for
  Payments To Be Held in Trust

  	
   

  
	
  SECTION 3.04. Existence

  	
   

  
	
  SECTION 3.05. Protection of
  Trust Estate

  	
   

  
	
  SECTION 3.06. Opinions as to
  Trust Estate

  	
   

  
	
  SECTION 3.07. Performance of
  Obligations; Servicing of Receivables

  	
   

  
	
  SECTION 3.08. Negative Covenants

  	
   

  
	
  SECTION 3.09. Annual Statement
  as to Compliance

  	
   

  
	
  SECTION 3.10. Issuer
  May Consolidate, etc., Only on Certain Terms

  	
   

  
	
  SECTION 3.11.
  Successor or Transferee

  	
   

  
	
  SECTION 3.12. No Other Business

  	
   

  

 

i

 

	
  SECTION 3.13. No Borrowing

  	
   

  
	
  SECTION 3.14. Servicer’s
  Obligations

  	
   

  
	
  SECTION 3.15. Guarantees,
  Loans, Advances and Other Liabilities

  	
   

  
	
  SECTION 3.16. Capital
  Expenditures

  	
   

  
	
  SECTION 3.17. Removal of
  Administrator

  	
   

  
	
  SECTION 3.18. Restricted
  Payments

  	
   

  
	
  SECTION 3.19. Notice of Events
  of Default

  	
   

  
	
  SECTION 3.20. Further
  Instruments and Acts

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  
	
  SECTION 4.01.
  Satisfaction and Discharge of Indenture

  	
   

  
	
  SECTION 4.02.
  Application of Trust Money

  	
   

  
	
  SECTION 4.03.
  Repayment of Moneys Held by Paying Agent

  	
   

  
	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  REMEDIES

  
	
   

  	
   

  
	
  SECTION 5.01.
  Events of Default

  	
   

  
	
  SECTION 5.02.
  Acceleration of Maturity; Rescission and Annulment

  	
   

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

  	
   

  
	
  SECTION 5.04.
  Remedies; Priorities

  	
   

  
	
  SECTION 5.05.
  Optional Preservation of the Receivables

  	
   

  
	
  SECTION 5.06.
  Limitation of Suits

  	
   

  
	
  SECTION 5.07.
  Unconditional Rights of Noteholders To Receive Principal and Interest

  	
   

  
	
  SECTION 5.08. Restoration of
  Rights and Remedies

  	
   

  
	
  SECTION 5.09. Rights and
  Remedies Cumulative

  	
   

  
	
  SECTION 5.10. Delay or Omission
  Not a Waiver

  	
   

  
	
  SECTION 5.11. Control by
  Noteholders

  	
   

  
	
  SECTION 5.12.
  Waiver of Past Defaults

  	
   

  
	
  SECTION 5.13. Undertaking for
  Costs

  	
   

  
	
  SECTION 5.14.
  Waiver of Stay or Extension Laws

  	
   

  
	
  SECTION 5.15. Action on Notes

  	
   

  
	
  SECTION 5.16. Performance and
  Enforcement of Certain Obligations

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  THE INDENTURE TRUSTEE

  
	
   

  	
   

  
	
  SECTION 6.01.
  Duties of Indenture Trustee

  	
   

  
	
  SECTION 6.02.
  Rights of Indenture Trustee

  	
   

  
	
  SECTION 6.03.
  Individual Rights of Indenture Trustee

  	
   

  
	
  SECTION 6.04.
  Indenture Trustee’s Disclaimer

  	
   

  

 

ii

 

	
  SECTION 6.05.
  Notice of Defaults

  	
   

  
	
  SECTION 6.06.
  Reports by Indenture Trustee to Holders

  	
   

  
	
  SECTION 6.07.
  Compensation and Indemnity

  	
   

  
	
  SECTION 6.08.
  Replacement of Indenture Trustee

  	
   

  
	
  SECTION 6.09. Successor
  Indenture Trustee by Merger

  	
   

  
	
  SECTION 6.10.
  Appointment of Co-Trustee or Separate Trustee

  	
   

  
	
  SECTION 6.11.
  Eligibility; Disqualification

  	
   

  
	
  SECTION 6.12.
  Preferential Collection of Claims Against Issuer

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  NOTEHOLDERS’ LISTS AND
  REPORTS

  
	
   

  	
   

  
	
  SECTION 7.01.
  Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders

  	
   

  
	
  SECTION 7.02.
  Preservation of Information; Communications to Noteholders

  	
   

  
	
  SECTION 7.03.
  Reports by Issuer

  	
   

  
	
  SECTION 7.04.
  Reports by Indenture Trustee

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  ACCOUNTS,
  DISBURSEMENTS AND RELEASES

  
	
   

  	
   

  
	
  SECTION 8.01.
  Collection of Money

  	
   

  
	
  SECTION 8.02.
  Trust Accounts

  	
   

  
	
  SECTION 8.03.
  General Provisions Regarding Accounts

  	
   

  
	
  SECTION 8.04.
  Release of Trust Estate

  	
   

  
	
  SECTION 8.05.
  Opinion of Counsel

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  
	
  SECTION 9.01.
  Supplemental Indentures Without Consent of Noteholders

  	
   

  
	
  SECTION 9.02.
  Supplemental Indentures with Consent of Noteholders

  	
   

  
	
  SECTION 9.03.
  Execution of Supplemental Indentures

  	
   

  
	
  SECTION 9.04.
  Effect of Supplemental Indenture

  	
   

  
	
  SECTION 9.05.
  Conformity with Trust Indenture Act

  	
   

  
	
  SECTION 9.06.
  Reference in Notes to Supplemental Indentures

  	
   

  
	
   

  	
   

  
	
  ARTICLE X

  
	
   

  	
   

  
	
  REDEMPTION OF NOTES

  
	
   

  	
   

  
	
  SECTION 10.01. Redemption

  	
   

  
	
  SECTION 10.02. Form of
  Redemption Notice

  	
   

  
	
  SECTION 10.03. Notes Payable on
  Redemption Date

  	
   

  

 

iii

 

	
  ARTICLE XI

  
	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  SECTION 11.01. Compliance
  Certificates and Opinions, etc

  	
   

  
	
  SECTION 11.02. Form of
  Documents Delivered to Indenture Trustee

  	
   

  
	
  SECTION 11.03. Acts of
  Noteholders

  	
   

  
	
  SECTION 11.04. Notices, etc.,
  to Indenture Trustee, Issuer and Rating Agencies

  	
   

  
	
  SECTION 11.05. Notices to
  Noteholders; Waiver

  	
   

  
	
  SECTION 11.06. Alternate Payment
  and Notice Provisions

  	
   

  
	
  SECTION 11.07. Conflict with
  Trust Indenture Act

  	
   

  
	
  SECTION 11.08. Effect of
  Headings and Table of Contents

  	
   

  
	
  SECTION 11.09. Successors and
  Assigns

  	
   

  
	
  SECTION 11.10. Separability

  	
   

  
	
  SECTION 11.11. Benefits of
  Indenture

  	
   

  
	
  SECTION 11.12. Legal Holidays

  	
   

  
	
  SECTION 11.13. GOVERNING LAW

  	
   

  
	
  SECTION 11.14. Counterparts

  	
   

  
	
  SECTION 11.15. Recording of
  Indenture

  	
   

  
	
  SECTION 11.16. Trust Obligation

  	
   

  
	
  SECTION 11.17. No Petition

  	
   

  
	
  SECTION 11.18. Subordination
  Agreement

  	
   

  
	
  SECTION 11.19. No Recourse

  	
   

  
	
  SECTION 11.20. Inspection

  	
   

  
	
  SECTION 11.21. Limitation of
  Liability

  	
   

  

 

EXHIBITS

Testimonium, Signatures and Seals Acknowledgments

 

	
  Exhibit A

  	
  Schedule of
  Receivables

  
	
  Exhibit B

  	
  Form of
  Sale and Servicing Agreement

  
	
  Exhibit C

  	
  Form of
  Depository Agreement

  
	
  Exhibit D

  	
  Form of
  Class A-1 Note

  
	
  Exhibit E

  	
  Form of
  Class A-2 Note

  
	
  Exhibit F

  	
  Form of
  Class A-3 Note

  
	
  Exhibit G

  	
  Form of
  Class A-4 Note

  

 

iv

 

INDENTURE dated as of May 15, 2005, between JOHN
DEERE OWNER TRUST 2005, a Delaware statutory trust (the “Issuer”), and THE BANK
OF NEW YORK, a New York banking corporation, solely as trustee and not in its
individual capacity (the “Indenture Trustee”).

 

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the Issuer’s
Class A-1 3.396% Asset Backed Notes (the “Class A-1 Notes”), Class A-2
3.79% Asset Backed Notes (the “Class A-2 Notes”), Class A-3 3.98%
Asset Backed Notes (the “Class A-3 Notes”) and the Class A-4 4.16%
Asset Backed Notes (the “Class A-4 Notes” and together with the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes, the “Notes”):

 

GRANTING CLAUSE

 

The Issuer hereby Grants to the Indenture Trustee at
the Closing Date, as trustee for the benefit of the Holders of the Notes, all
of the Issuer’s right, title and interest, whether now owned or hereafter
acquired, in and to (a) the Receivables and all moneys due thereon on or
after the Cut-off Date; (b) the security interests in the Financed
Equipment granted by Obligors pursuant to the Receivables and any other
interest of the Issuer in the Financed Equipment; (c) any proceeds with
respect to the Receivables from claims on any physical damage, credit life or
disability insurance policies covering Financed Equipment or Obligors; (d) the
Purchase Agreement, including the right assigned to the Issuer to cause JDCC to
repurchase Receivables from the Seller under certain circumstances; (e) all
funds on deposit from time to time in the Trust Accounts, including the Reserve
Account Initial Deposit, and in all investments and proceeds thereof (including
all income thereon); (f) the Sale and Servicing Agreement (including all
rights of the Seller under the Purchase Agreement assigned to the Issuer
pursuant to the Sale and Servicing Agreement); and (g) all present and
future claims, demands, causes and choses in action in respect of any or all of
the foregoing and all payments on or under and all proceeds of every kind and
nature whatsoever in respect of any or all of the foregoing, including all
proceeds of the conversion, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts 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”). 
This Indenture shall constitute a security agreement for purposes of the
Uniform Commercial Code as in effect in the States of New York and Delaware on
the date hereof.

 

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

 

The Indenture Trustee, as Indenture Trustee on behalf
of the Holders of the Notes, acknowledges such Grant, and accepts the trusts
under this Indenture in accordance with the provisions of this Indenture for
the use and benefit of such Holders.

 

 

ARTICLE I

 

DEFINITIONS AND
INCORPORATION BY REFERENCE

 

SECTION 1.01.  Definitions.  (a)  Except as otherwise specified
herein or as the context may otherwise require, the following terms have the
respective meanings set forth below for all purposes of this Indenture.

 

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

 

“Administration Agreement” means the
Administration Agreement dated as of May 15, 2005, among the
Administrator, the Issuer and the Indenture Trustee as amended or supplemented
from time to time.

 

“Administrator” means the administrator under
the Administration Agreement.

 

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

 

“Authorized Officer” means, with respect to the
Issuer, any officer of the Owner Trustee who is authorized to act for the Owner
Trustee in matters relating to the Issuer and who is identified on the list of
Authorized Officers, containing the specimen signature of each such Person,
delivered by the Owner Trustee to the Indenture Trustee on the Closing Date (as
such list may be modified or supplemented from time to time thereafter) and, so
long as the Administration Agreement is in effect, any Assistant Treasurer, any
Vice President or more senior officer of the Administrator who is authorized to
act for the Administrator in matters relating to the Issuer and to be acted
upon by the Administrator pursuant to the Administration Agreement and who is
identified on the list of Authorized Officers (containing the specimen
signatures of such officers) delivered by the Administrator to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter); provided, however, that for purposes of Section 3.09
and Section 1(a)(J) of the Administration Agreement such officer of the
Administrator must be any of the president, controller, chief executive
officer, chief financial officer or chief accounting officer.

 

“Bankruptcy Code” means the United States
Bankruptcy Code, Title 11 of the United States Code, as amended.

 

“Basic Documents” means the Certificate of
Trust, the Trust Agreement, the Purchase Agreement, the Sale and Servicing
Agreement, the Administration Agreement, the Depository Agreement and other
documents and certificates delivered in connection therewith.

 

“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.

 

2

 

“Business Day” means any day other than a
Saturday, a Sunday or a day on which banking institutions or trust companies in
The City of New York are authorized or obligated by law, regulation or
executive order to remain closed.

 

“Certificate” has the meaning assigned to it in
the Trust Agreement.

 

“Certificate of Trust” means the certificate of
trust of the Issuer substantially in the form of Exhibit A to the Trust
Agreement.

 

“Class A-1 Note” means a Class A-1 3.396%
Asset-Backed Note, substantially in the form of Exhibit D.

 

“Class A-1 Note Interest Rate” means 3.396
% per annum.

 

“Class A-2 Note” means a Class A-2 3.79%
Asset Backed Note, substantially in the form of Exhibit E.

 

“Class A-2 Note Interest Rate” means 3.79%
per annum.

 

“Class A-3 Note” means a Class A-3 3.98%
Asset Backed Note, substantially in the form of Exhibit F.

 

“Class A-3 Note Interest Rate” means 3.98%
per annum.

 

“Class A-4 Note” means a Class A-4 4.16%
Asset Backed Note, substantially in the form of Exhibit G.

 

“Class A-4 Note Interest Rate” means 4.16%
per annum.

 

“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.

 

“Closing Date” means May 26, 2005.

 

“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 the date of the execution
of this Indenture is located at 101 Barclay Street, New York, NY 10286,
Attention:  Corporate Trustee
Administration, facsimile No.: 212-815-3883, or at such other address as the
Indenture Trustee may designate from time to time by notice to the Noteholders

 

3

 

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.

 

“Depository Agreement” means the agreement
among the Issuer and The Depository Trust Company, as the initial Clearing
Agency, dated the Closing Date, substantially in the form of Exhibit C, as
amended or supplemented from time to time.

 

“Event of Default” has the meaning specified in
Section 5.01.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

“Executive Officer” means, with respect to any (i) corporation,
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; and (ii) partnership, any general partner thereof.

 

“Grant” means mortgage, pledge, bargain, sell,
warrant, alienate, remise, release, convey, assign, transfer, create, and grant
a lien upon and a security interest in and right of set-off against, deposit,
set over and confirm pursuant to this Indenture.  A Grant of the 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 Class A-1 Note, a Class A-2 Note, a Class A-3 Note
or a Class A-4 Note is registered on the Note Register.

 

“Indenture” means this Indenture as amended or
supplemented from time to time.

 

“Indenture Trustee” means The Bank of New York,
a New York banking corporation, as Indenture Trustee under this Indenture, or
any successor Indenture Trustee under this Indenture.

 

“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

 

4

 

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 11.01,
made by an Independent appraiser, firm of certified public accountants or other
expert appointed by an Issuer Order and approved by the Indenture Trustee, 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.

 

“Issuer” means John Deere Owner Trust 2005
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.

 

“JDCC” means John Deere Capital Corporation, a
Delaware corporation, and its successors.

 

“Note Interest Rate” means the per annum
interest rate borne by a Note.

 

“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 2.04.

 

“Notes” means the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes, and the Class A-4 Notes.

 

“Officer’s Certificate” means a certificate
signed by any Authorized Officer of the Issuer, under the circumstances
described in, and otherwise complying with, the applicable requirements of Section 11.01,
and delivered to the 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 and which opinion or
opinions shall be addressed to the Indenture Trustee as Indenture Trustee, and
shall comply with any applicable requirements of Section 11.01.

 

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

 

5

 

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

 

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

 

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

 

provided
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 upon the Notes, the Seller 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 actually knows to be so owned shall be so disregarded.  Notes so owned that have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the 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 a Class of Notes, as applicable,
Outstanding at the date of determination.

 

“Owner Trustee” means U.S. Bank Trust National
Association not in its individual capacity but solely as Owner Trustee under
the Trust Agreement, or any successor Owner Trustee under the Trust Agreement.

 

“Paying Agent” means the Indenture Trustee, The
Bank of New York or any 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.

 

“Payment Date” means the 15th day of each
month, or, if any such date is not a Business Day, the next succeeding Business
Day, commencing June 15, 2005.

 

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

 

6

 

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

 

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

 

“Protected Purchaser” has the meaning specified
in Article Eight of the UCC.

 

“Rating Agency” means Moody’s and Standard &
Poor’s.  If no such organization or
successor is any longer in existence, “Rating Agency” shall be a nationally
recognized statistical rating organization or other comparable Person
designated by the Issuer, notice of which designation shall be given to the
Indenture Trustee, the Owner Trustee and the Servicer.

 

“Rating Agency Condition” means, with respect
to any action, that each Rating Agency shall have been given 10 days’ prior
notice thereof and that each of the Rating Agencies shall have notified the
Seller, the Servicer and the Issuer in writing that such action will not result
in a reduction or withdrawal of the then current ratings of the Notes.

 

“Record Date” means, with respect to a Payment
Date or Redemption Date, the close of business on the day immediately preceding
such Payment Date or Redemption Date, unless Definitive Notes are issued, in
which case the Record Date with respect to such Definitive Notes as to any
Payment Date shall be the last day of the immediately preceding calendar month.

 

“Redemption Date” means the Payment Date
specified by the Servicer or the Issuer pursuant to Section 10.01(a) or
(b), as applicable.

 

“Redemption Price” means in the case of (a) a
redemption of the Notes pursuant to Section 10.01(a), an amount equal to
the Outstanding Amount of the Notes redeemed plus accrued and unpaid interest
on the Notes at the related Note Interest Rate to but excluding the Redemption
Date, or (b) a payment made to Noteholders pursuant to Section 10.01(b),
the amount on deposit in the Note Distribution Account, but not in excess of
the amount specified in clause (a) above.

 

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

 

“Responsible Officer” means, with respect to
the Indenture Trustee, any officer within the Corporate Trust Office of the
Indenture Trustee, including any Vice President, Assistant Vice President, 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 who shall have direct responsibility for the
administration of this Indenture.

 

7

 

“Sale and Servicing Agreement” means the Sale
and Servicing Agreement dated as of May 15, 2005 among the Issuer, the
Seller and the Servicer, in the form of Exhibit B, as 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).

 

“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 3.07(e).

 

“Trust Accounts” mean the Collection Account,
the Note Distribution Account and the Reserve Account established pursuant to Section 5.01
of the Sale and Servicing Agreement.

 

“Trust Estate” 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, without limitation, 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.

 

(b)                                 Except
as otherwise specified herein or as the context may otherwise require,
capitalized terms used but not otherwise defined herein shall have the
respective meanings set forth in the Sale and Servicing Agreement.

 

SECTION 1.02.  Incorporation by Reference of Trust
Indenture Act.  Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. 
The following TIA terms used in this Indenture have the following
meanings:

 

“Commission” means the Securities and Exchange
Commission.

 

“indenture securities” means the Notes.

 

“indenture security holder” means a Noteholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means
the Indenture Trustee.

 

“obligor” on the indenture securities means the Issuer
and any other obligor on the indenture securities.

 

8

 

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 1.03.  Rules of
Construction.  Unless the context
otherwise requires:

 

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

 

(ii)                                  an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles in the United States
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.

 

SECTION 1.04.  Calculations of Interest.  All calculations of interest in respect of
the Class A-1 Notes made hereunder shall be computed on the basis of the
actual number of days in the related period of accrual divided by 360.  Interest in respect of the Class A-1
Notes shall accrue from and including the Closing Date or from and including
the most recent Payment Date to which interest has been paid to but excluding
the current Payment Date.  All
calculations of interest in respect of the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes made hereunder shall be made on the basis of
a 360-day year consisting of twelve 30-day months.  Interest on the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes in respect of a Payment Date will accrue
from and including the 15th day of the month preceding such Payment Date (or
the Closing Date in the case of the first Payment Date) to and including the
14th day of the month of such Payment Date.

 

ARTICLE II

 

THE NOTES

 

SECTION 2.01.  Form. 
The Class A-1, Class A-2, Class A-3 and Class A-4 Notes,
in each case together with the Indenture Trustee’s certificate of
authentication, shall be in substantially the forms set forth in Exhibits D, E,
F and G, 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.

 

9

 

Each Note shall be dated the date of its
authentication.  The terms of the Notes
set forth in Exhibits D, E, F and G are part of the terms of this Indenture.

 

SECTION 2.02.  Execution, Authentication and Delivery.
 The Notes shall be executed on behalf of
the Issuer by any of its Authorized Officers. 
The signature of any such Authorized Officer on the Notes may be manual
or facsimile.

 

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

 

The Indenture Trustee shall upon Issuer Order
authenticate and deliver Class A-1 Notes for original issue in an
aggregate principal amount of $183,900,000, Class A-2 Notes for original
issue in an aggregate principal amount of $169,000,000, Class A-3 Notes
for original issue in an aggregate principal amount of $215,000,000 and Class A-4
Notes for original issue in an aggregate principal amount of $172,600,000.  The aggregate principal amount of Class A-1,
Class A-2, Class A-3 and Class A-4 Notes outstanding at any time
may not exceed such amounts, respectively, except as provided in Section 2.05.

 

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

 

No Note shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose, unless there appears on
such Note a certificate of authentication substantially in the form provided
for herein executed by the 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 2.03.  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 3.02, 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.

 

10

 

SECTION 2.04.  Registration; Registration of Transfer and
Exchange.  The Issuer shall cause to
be kept a register (the “Note Register”) in which, subject to such reasonable
regulations as it may prescribe, the Issuer shall provide for the registration
of Notes and the registration of transfers of Notes.  The 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 3.02,
if the requirements of Section 8-401(a) of the UCC are met, the
Issuer shall execute, and the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, in the name of the
designated transferee or transferees, one or more new Notes of the same Class in
any authorized denominations, of a like aggregate principal amount.

 

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

 

Every Note presented or surrendered for registration
of transfer or exchange shall be duly endorsed by, or be accompanied by a
written instrument of transfer in the form attached to the form of the
applicable Note 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 Indenture Trustee which
requirements will include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Indenture Trustee in addition
to, or in substitution for, STAMP, all in accordance with the Exchange Act, 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 Issuer may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or

 

11

 

exchange of Notes, other than exchanges pursuant to Section 2.03
or 9.06 not involving any transfer.

 

SECTION 2.05.  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 such security or indemnity as may be
required by it to hold the Issuer and the Indenture Trustee harmless, then, in
the absence of notice to the Issuer, the Note Registrar or the Indenture
Trustee that such Note has been acquired by a Protected Purchaser, 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 of the same Class; provided, however, that if
any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
become or within seven days shall be due and payable, or shall have been called
for redemption, instead of issuing a replacement Note, the Issuer may pay such
destroyed, lost or stolen Note when so due or payable or upon the Redemption
Date without surrender thereof.  If,
after the delivery of such replacement Note or payment of a destroyed, lost or
stolen Note pursuant to the proviso to the preceding sentence, a Protected
Purchaser of the original Note in lieu of which such replacement Note was
issued presents for payment such original Note, the Issuer and the Indenture
Trustee shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person taking such replacement
Note from such Person to whom such replacement Note was delivered or any
assignee of such Person, except a Protected Purchaser, and shall be entitled to
recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee
in connection therewith.

 

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.

 

SECTION 2.06.  Persons Deemed Owner.  Prior to due presentment for registration of
transfer of any Note, the Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee shall 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

 

12

 

not such Note be overdue,
and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or
the Indenture Trustee shall be affected by notice to the contrary.

 

SECTION 2.07.  Payment of Principal and Interest;
Defaulted Interest.  (a)  The
Notes shall accrue interest as provided in the forms of the Class A-1
Note, Class A-2 Note, Class A-3 Note and Class A-4 Note set
forth in Exhibits D, E, F and G, 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 (and except for the
Redemption Price for any Note called for redemption pursuant to Section 10.01(a))
which shall be payable as provided below. 
The funds represented by any such checks returned undelivered shall be
held in accordance with Section 3.03.

 

(b)                                 The
principal of each Note shall be payable in installments on each Payment Date as
provided in the forms of the Class A-1 Note, Class A-2 Note, Class A-3
Note and Class A-4 Note set forth in Exhibits D, E, F and G,
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 5.02.  All principal
payments on each Class of Notes shall be made pro rata to the Noteholders
of such Class entitled thereto. 
Upon notice to the Indenture Trustee by the Issuer, 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 no later than five Business Days prior to such final Payment Date and
shall specify that such final installment will be payable only upon
presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment.  Notices in connection with redemptions of
Notes shall be mailed to Noteholders as provided in Section 10.02.

 

(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 at a rate per
annum equal to the sum of (i) the applicable Note Interest Rate and (ii) 1.0%,
to the extent lawful) in any lawful manner. 
The Issuer may pay such defaulted interest and interest on 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
10 days before any such special record date, the Issuer shall mail to each
Noteholder a notice that states the special record date, the payment date and
the amount of defaulted interest and interest on such defaulted interest to be
paid.

 

13

 

SECTION 2.08.  Cancellation.  All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee.  The Issuer may at any time deliver to the
Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee.  No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in
this Section, except as expressly permitted by this Indenture. All cancelled
Notes may be held or disposed of by the Indenture Trustee in accordance with
its standard retention or disposal policy as in effect at the time unless the
Issuer shall direct by an Issuer Order that they be returned to it; provided
that the Notes have not been previously disposed of by the Indenture Trustee.

 

SECTION 2.09.  Release of Collateral.  Subject to Section 11.01, the Indenture
Trustee shall release property from the lien of this Indenture only upon
receipt of an Issuer Request accompanied by an Officer’s Certificate, an
Opinion of Counsel and Independent Certificates in accordance with TIA §§ 314(c) and
314(d)(l) or an Opinion of Counsel in lieu of such Independent Certificates to
the effect that the TIA does not require any such Independent Certificates.

 

SECTION 2.10.  Book-Entry Notes.  The Notes, upon original issuance, will be
issued in the form of a typewritten Note or Notes representing the Book-Entry
Notes, to be delivered to The Depository Trust Company, the initial Clearing
Agency, by, or on behalf of, the Issuer. 
Such Note 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 (as hereinafter defined) 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 Depository Agreement, unless and until Definitive Notes are
issued pursuant to Section 2.12, the initial Clearing 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; and

 

14

 

(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 (or any Class thereof), 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 (or any Class thereof)
and has delivered such instructions to the Indenture Trustee.

 

SECTION 2.11.  Notices to Clearing Agency.  Whenever a notice or other communication to
the Noteholders is required under this Indenture, unless and until Definitive
Notes shall have been issued to Note Owners pursuant to Section 2.12, 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 or other Holders of the Notes.

 

SECTION 2.12.  Definitive Notes.  If (i) the Administrator advises the
Indenture Trustee in writing that the Clearing Agency is no longer willing or
able to properly discharge its responsibilities with respect to the Notes, and
the Administrator is unable to locate a qualified successor, (ii) the
Administrator at its option advises the Indenture Trustee in writing that it
elects to terminate the book-entry system through the Clearing Agency or (iii) after
the occurrence of an Event of Default or a Servicer Default, Note Owners
representing beneficial interests aggregating at least a majority of the
Outstanding Amount of the Notes advise 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.

 

SECTION 2.13.  Notes as Indebtedness for Tax Purposes.  The Issuer is entering into this Indenture
with the intention that, for federal, State and local income and franchise tax
purposes, each Note will qualify as indebtedness secured by the Collateral.

 

ARTICLE III

 

COVENANTS

 

SECTION 3.01.  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, the Issuer will cause to be distributed all amounts on
deposit in the Note Distribution Account on a Payment Date.  Amounts properly

 

15

 

withheld under the Code
by any Person from a payment to any Noteholder of interest and/or principal
shall be considered as having been paid by the Issuer to such Noteholder for
all purposes of this Indenture.

 

SECTION 3.02.  Maintenance of Office or Agency.  The Issuer will maintain in the Borough of
Manhattan, The City of New York, an office or agency where Notes may be
surrendered for registration of transfer or exchange, and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be
served.  The Issuer hereby initially
appoints The Bank of New York, New York, New York 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 3.03.  Money for Payments To Be Held in Trust.  As provided in Section 8.02(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 8.02(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.

 

At or before noon (New York time) on 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 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;

 

16

 

(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 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 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 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 years after such amount has become due and payable shall be discharged
from such trust, and the Indenture Trustee or such Paying Agent, as the case
may be, shall give prompt notice of such occurrence to the Issuer and shall
release such money to the Issuer on Issuer Request; 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 the Indenture
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Issuer cause to be published once, in a newspaper
published in the English language, customarily published on each Business Day
and of general circulation in 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 may also adopt and
employ, at the expense of the Issuer, any other reasonable means of notification
of such repayment (including, but not limited to, mailing notice of such
repayment to Holders whose Notes have been called but have not been surrendered
for redemption or whose right to or interest in moneys due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent, at the last address of record for each such Holder).

 

SECTION 3.04.  Existence.  The Issuer will keep in full effect its
existence, rights and franchises as a statutory 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 Estate.

 

17

 

SECTION 3.05.  Protection of Trust Estate.  (a)  The Issuer will from time to time
prepare, execute, deliver and file 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)                                     maintain
or preserve the lien and security interest (and the priority thereof) of this
Indenture or carry out more effectively the purposes hereof;

 

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

 

(iii)                               enforce
any of the Collateral; or

 

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

 

The Issuer hereby designates the Indenture Trustee,
and hereby authorizes the Indenture Trustee as its agent and attorney-in-fact,
to execute any financing statement, continuation statement or other instrument
delivered to the Indenture Trustee pursuant to this Section.

 

(b)                                 The
Issuer hereby represents and warrants that, as to the Collateral pledged to the
Indenture Trustee for the benefit of the Noteholders, on the Closing Date:

 

(i)                                     the
Indenture creates a valid and continuing security interest (as defined in the
applicable UCC) in the Collateral that is in existence in favor of the
Indenture Trustee, which security interest is prior to all other liens, and is
enforceable as such as against creditors of and purchasers from the Issuer;

 

(ii)                                  the
Receivables constitute “tangible chattel paper” under the applicable UCC;

 

(iii)                               the
Issuer owns and has good and marketable title to such Collateral free and clear
of any liens, claims or encumbrances of any Person, other than the interest
Granted under this Indenture;

 

(iv)                              the
Issuer has acquired its ownership in such Collateral in good faith without
notice of any adverse claim;

 

(v)                                 the
Trust Accounts are not in the name of any person other than the Indenture
Trustee and the Issuer has not consented to the bank maintaining the Trust
Accounts to comply with the instructions of any person other than the Indenture
Trustee;

 

(vi)                              the
Issuer has not assigned, pledged, sold, granted a security interest in or
otherwise conveyed any interest in such Collateral (or, if any such interest
has been assigned, pledged or otherwise encumbered, it has been released) other
than interests Granted pursuant to this Indenture;

 

18

 

(vii)                           the
Issuer has caused or will have caused, within ten days after the Closing Date,
the filing of all appropriate financing statements in the proper filing office
in the appropriate jurisdiction under the applicable law in order to perfect
the security interest Granted hereunder in the Receivables;

 

(viii)                        other
than its Granting hereunder, the Issuer has not Granted such Collateral, the
Issuer has not authorized the filing of and is not aware of any financing
statements against the Issuer that include a description of such Collateral
other than the financing statement in favor of the Indenture Trustee, and the
Issuer is not aware of any judgment or tax lien filing against it; and

 

(ix)                                the
information relating to such Collateral set forth in the Schedule of
Receivables (attached hereto as Exhibit A) is correct.

 

SECTION 3.06.  Opinions as to Trust Estate.  (a)  On the Closing Date, the Issuer
shall furnish to the Indenture Trustee an Opinion of Counsel either stating
that, in the opinion of such counsel, such action has been taken with respect
to the recording and filing of this Indenture, any indentures supplemental
hereto, and any other requisite documents, and with respect to the execution
and filing of any financing statements and continuation statements, as are
necessary to perfect and make effective the lien and security interest of this
Indenture and reciting the details of such action, or stating that, in the
opinion of such counsel, no such action is necessary to make such lien and
security interest effective.

 

(b)                                 On
or before February 28 in each calendar year, beginning in 2006, the Issuer
shall furnish to the Indenture Trustee an Opinion of Counsel either stating
that, in the opinion of such counsel, such action has been taken with respect
to the recording, filing, re-recording and refiling of this Indenture, any
indentures supplemental hereto and any other requisite documents and with
respect to the execution and filing of any financing statements and
continuation statements as is necessary to maintain the lien and security
interest created by this Indenture and reciting the details of such action or
stating that in the opinion of such counsel no such action is necessary to
maintain such lien and security interest. Such Opinion of Counsel shall also
describe the recording, filing, re-recording and refiling of this Indenture,
any indentures supplemental hereto and any other requisite documents and the execution
and filing of any financing statements and continuation statements that will,
in the opinion of such counsel, be required to maintain the lien and security
interest of this Indenture until February 28 in the following calendar
year.

 

SECTION 3.07. 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 Estate or that would result in the amendment, hypothecation,
subordination, termination or discharge of, or impair the validity or
effectiveness of, any such instrument or agreement, except as expressly
provided in this Indenture, the Sale and Servicing Agreement or such other
instrument or agreement.

 

(b)                                 The
Issuer may contract with other Persons to assist it in performing its duties
under this Indenture, and any performance of such duties by a Person identified
to the

 

19

 

Indenture Trustee in an
Officer’s Certificate of the Issuer shall be deemed to be action taken by the
Issuer.  Initially, the Issuer has
contracted with the Servicer and the Administrator to assist the Issuer in
performing its duties under this Indenture.

 

(c)                                  The
Issuer 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 Estate, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of this Indenture and
the 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 or the Holders of at least a
majority of the Outstanding Amount of the Notes.

 

(d)                                 If
the Issuer shall have knowledge of the occurrence of a Servicer Default under
the Sale and Servicing Agreement, the Issuer shall promptly notify the
Indenture Trustee and the Rating Agencies thereof, and shall specify in such
notice the action, if any, the Issuer is taking with respect to 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)                                  As
promptly as possible after the giving of notice of termination to the Servicer
of the Servicer’s rights and powers pursuant to Section 8.01 of the Sale
and Servicing Agreement, the Issuer shall appoint a successor servicer (the “Successor
Servicer”), and such Successor Servicer shall accept its appointment by a
written assumption in a form acceptable to the Indenture Trustee.  In the event that a Successor Servicer has
not been appointed and accepted its appointment at the time when the Servicer
ceases to act as Servicer, the Indenture Trustee without further action shall
automatically be appointed the Successor Servicer, subject to Section 8.02
of the Sale and Servicing Agreement.  The
Indenture Trustee may resign as the Servicer by giving written notice of such
resignation to the Issuer and in such event will be released from such duties
and obligations, such release not to be effective until the date a new servicer
enters into a servicing agreement with the Issuer as provided below.  Upon delivery of any such notice to the
Issuer, the Issuer shall obtain a new servicer as the Successor Servicer under
the Sale and Servicing Agreement.  Any
Successor Servicer other than the Indenture Trustee shall (i) be an
established financial institution having a net worth of not less than
$50,000,000 and whose regular business includes the servicing of equipment receivables
and (ii) enter into a servicing agreement with the Issuer having
substantially the same provisions as the provisions of the Sale and Servicing
Agreement applicable to the Servicer.  If
within 30 days after the delivery of the notice referred to above, the Issuer
shall not have obtained such a new servicer, the Indenture Trustee may appoint,
or may petition a court of competent jurisdiction to appoint, a Successor
Servicer.  In connection with any such
appointment, the Indenture Trustee may make such arrangements for the
compensation of such successor as it and such successor shall agree, subject to
the limitations set forth below and in the Sale and Servicing Agreement, and in
accordance with Section 8.02 of the Sale and Servicing Agreement, the Issuer
shall enter into an agreement with such successor for the servicing of the
Receivables (such agreement to be in form and substance satisfactory to the
Indenture Trustee).  If the Indenture
Trustee shall

 

20

 

succeed to the Servicer’s
duties as servicer of the Receivables as provided herein, it shall do so in its
capacity as servicer and not in its capacity as Indenture Trustee and,
accordingly, the provisions of Article VI hereof shall be inapplicable to
the Indenture Trustee in its duties as the successor to the Servicer and the
servicing of the Receivables.  In case
the Indenture Trustee shall become successor to the Servicer under the Sale and
Servicing Agreement, the Indenture Trustee shall be entitled to appoint as
Servicer any one of its affiliates, provided that it shall be fully liable for
the actions and omissions of such affiliate in such capacity as Successor
Servicer.

 

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

 

(g)                                 Without
derogating from the absolute nature of the assignment granted to the Indenture
Trustee under this Indenture or the rights of the Indenture Trustee hereunder,
the Issuer agrees that it will not, without the prior written consent of the
Indenture Trustee or the Holders of at least a majority in Outstanding Amount
of the Notes, amend, modify, waive, supplement, terminate or surrender, or
agree to any amendment, modification, supplement, termination, waiver or
surrender of, the terms of any Collateral (except to the extent otherwise
provided in the Sale and Servicing Agreement) or the Basic Documents, or waive
timely performance or observance by the Servicer or the Seller under the Sale
and Servicing Agreement or JDCC under the Purchase Agreement; provided,
however, that no such amendment shall (i) increase or reduce in any manner
the amount of, or accelerate or delay the timing of, collections of payments on
Receivables or distributions that 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 Holders, 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 agreements, instruments, consents and other
documents as the Indenture Trustee may reasonably deem necessary or appropriate
in the circumstances.

 

SECTION 3.08.  Negative Covenants.  So long as any Notes are Outstanding, the
Issuer shall not:

 

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

 

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

 

21

 

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

 

SECTION 3.09.  Annual Statement as to Compliance.  The Issuer will deliver to the Indenture
Trustee, within 120 days after the end of each fiscal year of the Issuer
(commencing with the fiscal year ending in 2005), 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 the 12-month period ending at the
end of such fiscal year (or in the case of the fiscal year ending October 2005,
the period from the Closing Date to October 31, 2005) 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 of America or any State and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Indenture Trustee, in form
satisfactory to the Indenture Trustee, the due and punctual payment of the
principal of and interest on all Notes and the performance or observance of
every agreement and covenant of this Indenture on the part of the Issuer to be
performed or observed, all as provided herein;

 

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

 

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

 

(iv)                              the
Issuer shall have received an Opinion of Counsel (and shall have delivered
copies thereof to the Indenture Trustee) to the effect that such transaction

 

22

 

will not have any
material adverse tax consequence to the Trust, 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 an Officer’s Certificate
and an Opinion of Counsel each stating that such consolidation or merger and
such supplemental indenture comply with this Article III and that all
conditions precedent herein provided for relating to such transaction have been
complied with (including any filing required by the Exchange Act).

 

(b)                                 The
Issuer shall not convey or transfer any of its properties or assets, including
those included in the Trust Estate, to any Person, unless

 

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

 

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

 

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

 

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

 

23

 

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

 

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

 

(b)                                 Upon
a conveyance or transfer of all the assets and properties of the Issuer
pursuant to Section 3.10(b), the Issuer 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 to
and acceptance by the Indenture Trustee of the Officer’s Certificate and
Opinion of Counsel specified in Section 3.10(b)(vi) stating that the
Issuer is to be so released.

 

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

 

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

 

SECTION 3.14.  Servicer’s Obligations.  The Issuer shall cause the Servicer to comply
with Sections 4.09, 4.10, 4.11 and 5.06 of 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
personality).

 

SECTION 3.17.  Removal of Administrator.  So long as any Notes are Outstanding, the
Issuer shall not remove the Administrator without cause unless the Rating
Agency Condition shall have been satisfied in connection with such removal.

 

24

 

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, (x) distributions to
the Servicer, the Owner Trustee and the Certificateholders as permitted by, and
to the extent funds are available for such purpose under, the Sale and
Servicing Agreement and (y) payments to the Indenture Trustee pursuant to Section 1(a)(ii) of
the Administration 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.  The Issuer agrees to give the Indenture
Trustee and the Rating Agencies prompt written notice of each Event of Default
hereunder and, within five days after obtaining knowledge of any of the
following occurrences, written notice of each default on the part of the
Servicer or the Seller of its obligations under the Sale and Servicing
Agreement and each default on the part of JDCC of its obligations under the
Purchase Agreement.

 

SECTION 3.20.  Further Instruments and Acts.  Upon request of the Indenture Trustee, the
Issuer will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

 

ARTICLE IV

 

SATISFACTION AND
DISCHARGE

 

SECTION 4.01.  Satisfaction and Discharge of Indenture.  This Indenture shall cease to be of further
effect with respect to the Notes except as to (i) rights of registration
of transfer and exchange, (ii) substitution of mutilated, destroyed, lost
or stolen Notes, (iii) rights of Noteholders to receive payments of
principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.05,
3.08, 3.10, 3.12 and 3.13, (v) the rights, obligations and immunities of
the Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.07 and the obligations of the Indenture Trustee under Section 4.02)
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 2.05 and (ii) Notes for whose

 

25

 

payment money has theretofore been deposited in trust
or segregated and held in trust by the Issuer and thereafter repaid to the
Issuer or discharged from such trust, as provided in Section 3.03) have
been delivered to the Indenture Trustee for cancellation; or

 

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

 

(a)                                  have
become due and payable,

 

(b)                                 will
become due and payable at the Class A-4 Final Scheduled Payment Date
within one year, or

 

(c)                                  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 clause (a), (b) or
(c) immediately 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 as of such
day of discharge or when due on the Class A-4 Final Scheduled Payment Date
or Redemption Date (if Notes shall have been called for redemption pursuant to Section 10.01(a)),
as the case may be;

 

(B)                                the
Issuer has paid or caused to be paid all other sums payable hereunder by the
Issuer; and

 

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

 

SECTION 4.02.  Application of Trust Money.  All moneys deposited with the Indenture
Trustee pursuant to Section 4.01 shall be held in trust and applied by it,
in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent, as the 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.

 

26

 

SECTION 4.03.
 Repayment of Moneys Held by Paying
Agent.  In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all
moneys then held by any Paying Agent other than the 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 3.03 and thereupon such Paying Agent shall be released from all
further liability with respect to such moneys.

 

ARTICLE V

 

REMEDIES

 

SECTION 5.01.  Events of Default.  “Event of Default”, wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

 

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

 

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

 

(iii)                               default
in the observance or performance of any 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 representation or warranty was incorrect shall not have been eliminated or
otherwise cured, for a period of 30 days after there shall have been given, by
registered or certified mail, to the Issuer by the 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

 

(iv)                              the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of the Issuer or any substantial part of the Trust Estate
in an involuntary case under any applicable federal or State bankruptcy,
insolvency or other similar law now or hereafter in effect, or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for the Issuer or for any substantial part of the Trust Estate, or
ordering the winding-up or liquidation of the Issuer’s affairs, and such decree
or order shall remain unstayed and in effect for a period of 90 consecutive
days; or

 

27

 

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

 

The Issuer shall deliver to the Indenture Trustee,
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), (iv) and
(v), its status and what action the Issuer is taking or proposes to take with
respect thereto.

 

SECTION 5.02.  Acceleration of Maturity; Rescission and
Annulment.  If an Event of Default
should occur and be continuing, then and in every such case the Indenture
Trustee or the Holders of Notes representing a majority of the Outstanding
Amount of the Notes may declare all the Notes to be immediately due and
payable, by a notice in writing to the Issuer (and to the Indenture Trustee if
given by Noteholders), and upon any such declaration the unpaid principal
amount of the Notes, together with accrued and unpaid interest thereon through
the date of acceleration, shall become immediately due and payable.

 

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, the Holders of Notes representing a majority of the Outstanding
Amount of the Notes, 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.

 

28

 

SECTION 5.03.  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 a rate per annum equal to the sum of (i) the respective Note
Interest Rate borne by such Notes and (ii) 1.0% 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)                                 In
case the Issuer shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee, in its own name and as trustee of an express trust, may
institute a Proceeding for the collection of the sums so due and unpaid, and
may prosecute such Proceeding to judgment or final decree, and may enforce the
same against the Issuer or other obligor upon such Notes and collect in the
manner provided by law out of the property of the Issuer or other obligor upon
such Notes, wherever situated, the moneys adjudged or decreed to be payable.

 

(c)                                  If
an Event of Default occurs and is continuing, the Indenture Trustee may, as
more particularly provided in Section 5.04, in its discretion, proceed to
protect and enforce its rights and the rights of the Noteholders, by such
appropriate Proceedings as the Indenture Trustee shall deem most effective to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Indenture Trustee by this Indenture or by law.

 

(d)                                 In
case there shall be pending, relative to the Issuer or any other obligor upon
the Notes or any Person having or claiming an ownership interest in the Trust
Estate, Proceedings under the Bankruptcy 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

 

29

 

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 negligence or bad faith)
and of the Noteholders allowed in such Proceedings;

 

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

 

(iii)                               to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute all amounts received with respect to the claims
of the Noteholders and of the 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.

 

(e)                                  Nothing
herein contained shall be deemed to authorize the Indenture Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Noteholder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any 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.

 

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

 

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

 

30

 

SECTION 5.04.  Remedies; Priorities.  (a)  If an Event of Default shall have
occurred and be continuing, the Indenture Trustee may do one or more of the
following (subject to Section 5.05):

 

(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 Estate;

 

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

 

(iv)                              sell
the Trust Estate or any portion thereof or rights or interest therein, at one
or more public or private sales called and conducted in any manner permitted by
law; provided, however, that the Indenture Trustee may not sell
or otherwise liquidate the Trust Estate following an Event of Default, other
than an Event of Default described in Section 5.01(i) or (ii), unless
(A) the Holders of 100% of the Outstanding Amount of the Notes consent
thereto, (B) 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 (C) the Indenture Trustee
determines that the Trust Estate will not continue to provide sufficient funds
for the payment of principal of and interest on the Notes as they would have
become due if the Notes had not been declared due and payable, and the
Indenture Trustee 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 (B) and (C), 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
Estate for such purpose.

 

(b)                                 If
the Indenture Trustee collects any money or property pursuant to this Article V,
it shall pay out the money or property in the following order:

 

FIRST:  to the
Indenture Trustee for amounts due under Section 6.07 and the Owner Trustee
for amounts due under Sections 8.01 and 8.02 of the Trust Agreement, pro rata on the basis of the amount due to each;

 

SECOND: to the Noteholders in the following amounts
and the following order of priority:

 

(i)                                     to
the Noteholders, accrued and unpaid interest on the Outstanding Amount of each
class of Notes at the applicable Note Interest Rate (such amount to be applied pro rata on the basis of the total interest due on the
Notes);

 

31

 

(ii)                                  to
the Noteholders on account of principal until the Outstanding Amount of the
Notes is reduced to zero (such amount to be applied pro rata
on the basis of the Outstanding Amount of each class of Notes); and

 

THIRD:  to the
Issuer for distribution to the Certificateholder.

 

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

 

SECTION 5.05.  Optional Preservation of the Receivables.  If the Notes have been declared to be due and
payable under Section 5.02 following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the
Indenture Trustee may, but need not, elect to maintain possession of the Trust
Estate.  It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for the
payment of principal of and interest on the Notes, and the Indenture Trustee
shall take such desire into account when determining whether or not to maintain
possession of the Trust Estate.  In
determining whether to maintain possession of the Trust Estate, the 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
Estate for such purpose.

 

SECTION 5.06.  Limitation of Suits.  No Holder of any Note shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

 

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

 

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

 

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

 

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

 

(v)                                 no
direction inconsistent with such written request has been given to the
Indenture Trustee during such 60-day period by the Holders of a majority of the
Outstanding Amount of the Notes; it being understood and intended that no one
or more Holders of Notes shall have any right in any manner whatever by virtue
of, or by availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other Holders of Notes or to obtain or to seek to
obtain priority or preference over any other

 

32

 

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, and shall have no liability to any person for such action or
inaction.

 

SECTION 5.07.  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 5.08.  Restoration of Rights and Remedies.  If the Indenture Trustee or any Noteholder
has instituted any Proceeding to enforce any right or remedy under this
Indenture and such Proceeding has been discontinued or abandoned for any reason
or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Issuer, the Indenture Trustee and
the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.

 

SECTION 5.09.  Rights and Remedies Cumulative.  No right or remedy herein conferred upon or
reserved to the Indenture Trustee or to the Noteholders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

 

SECTION 5.10.  Delay or Omission Not a Waiver.  No delay or omission of the Indenture Trustee
or any 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 5.11.  Control by Noteholders.  The Holders of a majority of the Outstanding
Amount of the Notes shall have the right to direct the time, method and place
of conducting any Proceeding for any remedy available to the Indenture Trustee
with respect to the Notes or exercising any trust or power conferred on the
Indenture Trustee; provided that

 

33

 

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

 

(ii)                                  subject
to the express terms of Section 5.04, any direction to the Indenture
Trustee to sell or liquidate the Trust Estate 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 5.05 have been satisfied and the
Indenture Trustee elects to retain the Trust Estate 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
Estate 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 6.01, 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 5.12.  Waiver of Past Defaults.  Prior to the declaration of the acceleration
of the maturity of the Notes as provided in Section 5.02, the Holders of
Notes of not less than a majority of the Outstanding Amount of the Notes may
waive any past Default or Event of Default and its consequences except a
Default (a) in payment of principal of or interest on any of the Notes or (b) in
respect of a covenant or provision 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 5.13.  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 and
expenses, 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

 

34

 

suit instituted by any
Noteholder for the enforcement of the payment of principal of or interest on
any Note on or after the respective due dates expressed in such Note and in
this Indenture (or, in the case of redemption, on or after the Redemption
Date).

 

SECTION 5.14.  Waiver of Stay or Extension Laws.  The Issuer covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead or in
any manner whatsoever, claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Issuer (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
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 5.15.  Action on Notes.  The Indenture Trustee’s right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture.  Neither the lien of
this Indenture nor any rights or remedies of the Indenture Trustee or the
Noteholders shall be impaired by the recovery of any judgment by the Indenture
Trustee against the Issuer or by the levy of any execution under such judgment
upon any portion of the Trust Estate or upon any of the assets of the
Issuer.  Any money or property collected
by the Indenture Trustee shall be applied in accordance with Section 5.04(b).

 

SECTION 5.16.  Performance and Enforcement of Certain
Obligations.  (a)  Promptly
following a request from the Indenture Trustee to do so and at the
Administrator’s expense, the Issuer agrees to take all such lawful action as
the Indenture Trustee may request to compel or secure the performance and
observance by the Seller and the Servicer, as applicable, of each of their
obligations to the Issuer under or in connection with the Sale and Servicing
Agreement or to JDCC under or in connection with the Purchase 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 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
an Event of Default has occurred and is continuing, the Indenture Trustee at
the direction (which direction shall be in writing or by telephone (confirmed
in writing promptly thereafter)) of the Holders of 66-2/3% of the Outstanding
Amount of the Notes shall exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Seller or the Servicer under or in connection
with the Sale and Servicing Agreement, including the right or power to take any
action to compel or secure performance or observance by the Seller 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.

 

(c)                                  Promptly
following a request from the Indenture Trustee to do so and at the
Administrator’s expense, the Issuer agrees to take all such lawful action as
the Indenture

 

35

 

Trustee may request to
compel or secure the performance and observance by JDCC of each of its
obligations to the Seller under or in connection with the Purchase 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 Purchase 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 thereunder and the institution of legal or administrative
actions or proceedings to compel or secure performance by JDCC of each of its
obligations under the Purchase Agreement.

 

(d)                                 If
an Event of Default has occurred and is continuing, the Indenture Trustee at
the direction (which direction shall be in writing or by telephone (confirmed
in writing promptly thereafter)) of the Holders of 66-2/3% of the Outstanding
Amount of the Notes shall exercise all rights, remedies, powers, privileges and
claims of the Seller against JDCC under or in connection with the Purchase
Agreement to the extent granted as security for the Notes hereunder, including
the right or power to take any action to compel or secure performance or
observance by JDCC of each of its obligations to the Seller thereunder and to
give any consent, request, notice, direction, approval, extension or waiver
under the Purchase Agreement, and any right of the Seller to take such action
shall be suspended.

 

Notwithstanding the foregoing, the Indenture Trustee
shall have no duty or obligation to monitor the Servicer’s, the Seller’s or
JDCC’s performance of any of their obligations under or in connection with the
Sale and Servicing Agreement or the Purchase Agreement.

 

ARTICLE VI

 

THE INDENTURE TRUSTEE

 

SECTION 6.01.  Duties of Indenture Trustee.  (a)  If an Event of Default has occurred
and is continuing, the Indenture Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.

 

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

 

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

 

(ii)                                  in
the absence of bad faith on its part, the Indenture Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Indenture
Trustee and conforming to the requirements of this Indenture; however, the
Indenture Trustee shall examine the certificates and opinions which by any
provision hereof are specifically required to be furnished to the Indenture
Trustee to determine whether or not they conform on their face to the
requirements of this Indenture, but need not confirm or investigate the
accuracy of any mathematical calculations or other facts stated therein.

 

36

 

The Indenture Trustee shall not be required to
determine, confirm or recalculate the information contained in the Servicer’s
Certificate delivered to it pursuant to the Sale and Servicing Agreement.

 

(c)                                  The
Indenture Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act or its own wilful 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 negligent in ascertaining the pertinent facts; and

 

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

 

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

 

(e)                                  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.

 

(f)                                    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.

 

(g)                                 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 repayments of such funds or
adequate indemnity satisfactory to it against such loss, liability or expense
is not reasonably assured to it.

 

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

 

SECTION 6.02.  Rights of Indenture Trustee.  (a)  The Indenture Trustee may rely on
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.

 

(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.

 

37

 

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

 

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

 

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

 

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

 

(g)                                 The
Indenture Trustee shall not be deemed to have notice of any default or Event of
Default unless a Responsible Officer of the Indenture Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Indenture Trustee at the Corporate Trust Office of
the Indenture Trustee, and such notice references the Notes and this Indenture.

 

(h)                                 The
rights, privileges, protections, immunities and benefits given to the Indenture
Trustee, including, without limitation, its right to be indemnified are
extended to, and shall be enforceable by, the Indenture Trustee in each of its
capacities hereunder, and to each agent, custodian and other Person employed to
act hereunder.

 

(i)                                     in
no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) irrespective of whether the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

 

SECTION 6.03.  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 6.10 and 6.11.

 

SECTION 6.04.  Indenture Trustee’s Disclaimer.  The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
the Trust Estate,

 

38

 

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

 

SECTION 6.05.  Notice of Defaults.  If a Default occurs and is continuing and if
it is actually known to a Responsible Officer of the Indenture Trustee, the
Indenture Trustee shall mail to each Noteholder notice of the Default within 90
days after it occurs.  Except in the case
of a Default in payment of principal of or interest on any Note (including
payments pursuant to the 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; and provided that in the case of any default of
the character specified in Section 5.01(iii), no such notice to Holders shall
be given until at least 30 days after the occurrence thereof.

 

SECTION 6.06.  Reports by Indenture Trustee to Holders.  The Indenture Trustee shall deliver to each
Noteholder such information as may be required to enable such holder to prepare
its federal and State income tax returns. 
The Indenture Trustee shall only be required to provide to the
Noteholders the information given to it by the Servicer.  The Indenture Trustee shall not be required
to determine, confirm or recompute any such information.

 

SECTION 6.07.  Compensation and Indemnity.  The Issuer shall or shall cause the Servicer (pursuant
to the Sale and Servicing Agreement) to pay to the Indenture Trustee from time
to time reasonable compensation for its services.  The Indenture Trustee’s compensation shall
not be limited by any law on compensation of a trustee of an express
trust.  The Issuer shall or shall cause
the Servicer (pursuant to the Sale and Servicing Agreement) to reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including pursuant to Section 6.08 and costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee’s agents, counsel, accountants and experts.  The Issuer shall or shall cause the Servicer (pursuant
to the Sale and Servicing Agreement) to indemnify the Indenture Trustee against
any and all loss, liability, claim, damage or expense (including the fees of
either in-house counsel or outside counsel, but not both) incurred by it in
connection with the administration of this trust and the performance of its
duties hereunder.  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
or the Servicer of its obligations hereunder. 
The Issuer shall or shall cause the Servicer to defend the claim and the
Indenture Trustee may have separate counsel and the Issuer shall 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 wilful
misconduct, negligence or bad faith.

 

The Issuer’s payment obligations to the Indenture
Trustee pursuant to this Section shall survive the discharge of this
Indenture.  When the Indenture Trustee
incurs expenses after the occurrence of a Default specified in Section 5.01(iv) or
(v) with respect to the Issuer, the

 

39

 

expenses are intended to constitute expenses of administration under
the Bankruptcy Code or any other applicable federal or State bankruptcy,
insolvency or similar law.

 

SECTION 6.08.  Replacement of Indenture Trustee.  No resignation or removal of the Indenture
Trustee and no appointment of a successor Indenture Trustee shall become
effective until the acceptance of appointment by the successor Indenture
Trustee pursuant to this Section 6.08. 
The Indenture Trustee may resign at any time by so notifying the Issuer.
The Holders of a majority in Outstanding Amount of the Notes may remove the
Indenture Trustee by so 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)                                  the
Indenture Trustee is adjudged a bankrupt or insolvent;

 

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

 

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

 

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

 

A successor Indenture Trustee shall deliver a written
acceptance of its appointment to the retiring Indenture Trustee and to the
Issuer.  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. 
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 Holders of a majority in
Outstanding Amount of the Notes 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.

 

Notwithstanding the replacement of the Indenture Trustee
pursuant to this Section, the Issuer’s and the Administrator’s obligations
under Section 6.07 shall continue for the benefit of the retiring
Indenture Trustee.

 

SECTION 6.09.  Successor Indenture Trustee by Merger.  If the Indenture Trustee consolidates with,
merges or converts into, or transfers all or substantially all its corporate
trust

 

40

 

business or assets to,
another corporation or banking association, the resulting, surviving or
transferee corporation or banking association without any further act shall be
the successor Indenture Trustee.  The
Indenture Trustee shall provide the Rating Agencies prior written notice of any
such transaction, provided that such corporation or banking association shall
be otherwise qualified and eligible under Section 6.11.

 

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-Trustee or Separate
Trustee.  (a)  Notwithstanding
any other provisions of this Indenture, at any time, for the purpose of meeting
any legal requirement of any jurisdiction in which any part of the Trust may at
the time be located, the Indenture Trustee shall have the power and may execute
and deliver all instruments to appoint one or more Persons reasonably
acceptable to the Issuer to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Trust, and to vest in
such Person or Persons, in such capacity and for the benefit of the
Noteholders, such title to the Trust, or any part hereof, and, subject to the
other provisions of this Section, such powers, duties, obligations, rights and
trusts as the 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 6.08.

 

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

 

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

 

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

 

41

 

(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
Agreement on its behalf and in its name. 
If any separate trustee or co-trustee shall die, become incapable of
acting, resign or be removed, all of its estates, properties, rights, remedies
and trusts shall vest in and be exercised by the Indenture Trustee, to the
extent permitted by law, without the appointment of a new or successor trustee.

 

SECTION 6.11.  Eligibility; Disqualification.  The
Indenture Trustee shall at all times satisfy the requirements of TIA § 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 and its long-term unsecured debt shall be
rated at least Baa3 by Moody’s.  The
Indenture Trustee shall comply with TIA § 310(b), including the optional
provision permitted by the second sentence of TIA § 310(b)(9); provided,
however, that there shall be excluded from the operation of TIA § 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 § 310(b)(1) are
met.

 

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

 

ARTICLE VII

 

NOTEHOLDERS’ LISTS
AND REPORTS

 

SECTION 7.01.  Issuer To Furnish 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 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 of
Notes as of such Record Date, (b) at such other times as the Indenture
Trustee may request in writing, within 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
10 days prior to the time

 

42

 

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.

 

SECTION 7.02.  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 of Notes contained in the
most recent list furnished to the Indenture Trustee as provided in Section 7.01
and the names and addresses of Holders of Notes 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 7.01 upon receipt of a new list so furnished.

 

(b)                                 Noteholders
may communicate pursuant to TIA § 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 § 312(c).

 

SECTION 7.03.  Reports by Issuer.  (a)  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 § 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 7.03(a) as may be
required by rules and regulations prescribed from time to time by the
Commission.

 

The Trustee shall have no obligation to confirm or
investigate the accuracy of any mathematical calculations or other facts stated
in the reports provided pursuant to this Section.

 

(b)                                 Unless
the Issuer otherwise determines, the fiscal year of the Issuer shall end on October 31
of each year.

 

SECTION 7.04.  Reports by Indenture Trustee.  If required by TIA § 313(a), within 60
days after each February 1 beginning with February 1, 2006, the
Indenture Trustee

 

43

 

shall mail to each
Noteholder as required by TIA § 313(c) a brief report dated as of
such date that complies with TIA § 313(a). 
The Indenture Trustee also shall comply with TIA § 313(b).

 

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

 

ARTICLE VIII

 

ACCOUNTS,
DISBURSEMENTS AND RELEASES

 

SECTION 8.01.  Collection of Money.  Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall receive
and collect, directly and without intervention or assistance of any fiscal
agent or other intermediary, all money and other property payable to or
receivable by the Indenture Trustee pursuant to this Indenture.  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 Estate,
the Indenture Trustee may take such action as may be appropriate to enforce
such payment or performance, including the institution and prosecution of
appropriate Proceedings.  Any such action
shall be without prejudice to any right to claim a Default or Event of Default
under this Indenture and any right to proceed thereafter as provided in Article V.

 

SECTION 8.02.  Trust Accounts.  (a)  On or prior to the Closing Date,
the Issuer shall cause the Servicer to establish and maintain, in the name of
the Indenture Trustee, for the benefit of the Noteholders and the
Certificateholders, the Trust Accounts as provided in Section 5.01 of the
Sale and Servicing Agreement.

 

(b)                                 Not
less than two Business Days prior to each Payment Date, the Total Distribution
Amount with respect to the preceding Collection Period will be deposited in the
Collection Account as provided in Section 5.02 of the Sale and Servicing
Agreement.  On or before each Payment
Date, the Noteholders’ Distributable Amount with respect to the preceding Collection
Period will be transferred from the Collection Account, and/or the Reserve
Account to the Note Distribution Account as provided in Sections 5.04 and 5.05
of the Sale and Servicing Agreement.

 

(c)                                  Except
as otherwise provided in Section 5.04(b), 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:

 

(i)                                     accrued
and unpaid interest on the Outstanding Amount of each class of Notes at the
applicable Note Interest Rate (such amount to be applied pro rata on the basis
of the total interest due on the Notes);

 

44

 

(ii)                                  the
Note Monthly Principal Distributable Amount in the following order of priority:

 

(a)                                  to
the Class A-1 Noteholders on account of principal until the Outstanding
Amount of the Class A-1 Notes is reduced to zero; and

 

(b)                                 to
the Class A-2 Noteholders on account of principal until the Outstanding
Amount of the Class A-2 Notes is reduced to zero; and

 

(c)                                  to
the Class A-3 Noteholders on account of principal until the Outstanding
Amount of the Class A-3 Notes is reduced to zero; and

 

(d)                                 to
the Class A-4 Noteholders on account of principal until the Outstanding
Amount of the Class A-4 Notes is reduced to zero.

 

SECTION 8.03.  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 in Eligible Investments and reinvested by
the Indenture Trustee upon Issuer Order, subject to the provisions of Section 5.01(b) of
the Sale and Servicing Agreement.  All
income or other gain from investments of monies deposited in the Trust Accounts
net of any investment expenses and any losses resulting from such investments
shall be deposited by the Indenture Trustee in the Collection 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, if requested by the Indenture Trustee, the Issuer shall
deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

 

(b)                                 Subject
to Section 6.01(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 Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as Indenture Trustee, in accordance with
their terms.

 

(c)                                  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 12:00 noon
New York 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 5.02, or, if
such Notes shall have been declared due and payable following an Event of
Default, amounts

 

45

 

collected or receivable
from the Trust Estate are being applied in accordance with Section 5.05 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 one or more Eligible Investments referred to in paragraph (b) of the
definition of Eligible Investments.

 

(d)                                 The
Bank of New York in its capacity as “Securities Intermediary” with respect to a
Trust Account established pursuant to the Transaction Documents agrees that (x)
if it has or subsequently obtains by agreement, by operation of law or
otherwise, a security interest in a Trust Account or any financial asset
credited thereto, such security interest shall be subordinate to the security
interest of the Indenture Trustee in such Trust Account and any financial asset
credited thereto and (y) the financial assets and other items deposited to such
an Eligible Deposit Account will not be subject to deduction, set-off, banker’s
lien, or any other right in favor of any person other than the Indenture
Trustee.

 

SECTION 8.04.  Release of Trust Estate.  (a)  Subject to the payment of its fees
and expenses pursuant to Section 6.07, the Indenture Trustee may, and when
required by the provisions of this Indenture shall, execute instruments to
release property from the lien of this Indenture, or convey the Indenture
Trustee’s interest in the same, in a manner and under circumstances that are
not inconsistent with the provisions of this Indenture.  No party relying upon an instrument executed
by the Indenture Trustee as provided in this Article VIII shall be bound
to ascertain the Indenture Trustee’s authority, inquire into the satisfaction
of any conditions precedent or see to the application of any monies.

 

(b)                                 The
Indenture Trustee shall, at such time as there are no Notes Outstanding and all
sums due the Indenture Trustee pursuant to Section 6.07 have been paid,
release any remaining portion of the Trust Estate that secured the Notes from
the lien of this Indenture and release to the Issuer or any other Person
entitled thereto any funds then on deposit in the Trust Accounts.  The Indenture Trustee shall release property
from the lien of this Indenture pursuant to this Section 8.04(b) only
upon receipt of an Issuer Request accompanied by an Officer’s Certificate, an
Opinion of Counsel and (if required by the TIA) Independent Certificates in
accordance with TIA §§ 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.01.

 

SECTION 8.05.  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 8.04(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 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 Estate. Counsel rendering any such opinion may rely, without
independent investigation, on the accuracy and validity of any certificate or
other instrument delivered to the Indenture Trustee in connection with any such
action.

 

46

 

ARTICLE IX

 

SUPPLEMENTAL INDENTURES

 

SECTION 9.01.  Supplemental Indentures Without Consent of
Noteholders.  (a)  Without the
consent of the Holders of any Notes but with prior notice to the Rating
Agencies, the Issuer and the 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, 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, as evidenced by an Opinion of
Counsel, adversely affect in any material respect 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 prior notice to
the

 

47

 

Rating Agencies, enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; 
provided, however, that such action shall not adversely affect in any
material respect the interests of any Noteholder; provided that 10 days’ prior
written notice of any such indenture or supplement indenture hereto be given to
each Rating Agency and, if a Rating Agency notifies the Indenture Trustee that
such indenture or supplement indenture hereto will result in a downgrading or
withdrawal of the then current rating of any Class of the Notes or the
Certificate, such amendment shall become effective with the consent of the
Holders of Notes evidencing not less than a majority of the Outstanding Amount
of the Notes and the consent of the Certificateholder; provided that any
solicitation of such consent shall disclose the resulting downgrading or
withdrawal as a result of such amendment.

 

SECTION 9.02.  Supplemental Indentures with Consent of
Noteholders.  The Issuer and the
Indenture Trustee, when authorized by an Issuer Order, also may, with prior
notice to the Rating Agencies and with the consent of the Holders of not less
than a majority of the Outstanding Amount of the Notes, by Act of such Holders
delivered to the Issuer and 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 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 Estate to payment of principal of or interest on the Notes, or change
any place of payment where, or the coin or currency in which, any Note or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of the provisions of this Indenture requiring the application of
funds available therefor, as provided in Article V, to the payment of any
such amount due on the Notes on or after the respective due dates thereof (or,
in the case of redemption, on or after the Redemption Date);

 

(ii)                                  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;

 

(iii)                               modify
or alter the provisions of the proviso to the definition of the term “Outstanding”;

 

(iv)                              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 Estate
pursuant to Section 5.04;

 

48

 

(v)                                 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 affected thereby;

 

(vi)                              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

 

(vii)                           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 Estate or, except as otherwise
permitted or contemplated herein, 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.

 

The Indenture Trustee may in its discretion 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.

 

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.

 

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 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 or a copy 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 9.03.  Execution of Supplemental Indentures.  In executing, or permitting the additional
trusts created by, any supplemental indenture permitted by this Article IX
or the modifications thereby of the trusts created by this Indenture, the Indenture
Trustee shall be provided with, and subject to Sections 6.01 and 6.02, shall be
fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture.  The 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 9.04.  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

 

49

 

under this Indenture of
the Indenture Trustee, the Issuer 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 9.05.  Conformity with Trust Indenture Act.  Every amendment of this Indenture and every
supplemental indenture executed pursuant to this Article IX shall conform
to the requirements of the Trust Indenture Act as then in effect so long as
this Indenture shall then be qualified under the Trust Indenture Act.

 

SECTION 9.06.  Reference in Notes to Supplemental
Indentures.  Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article IX
may, and if required by the Indenture Trustee shall, bear a notation in form
approved by the Indenture Trustee as to any matter provided for in such
supplemental indenture.  If the Issuer or
the Indenture Trustee shall so determine, new Notes so modified as to conform,
in the opinion of the Indenture Trustee and the Issuer, to any such
supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Indenture Trustee in exchange for
Outstanding Notes.

 

ARTICLE X

 

REDEMPTION OF NOTES

 

SECTION 10.01.  Redemption.  (a)  The Notes are subject to redemption
in whole, but not in part, at the written direction of the Servicer pursuant to
Section 9.01(a) of the Sale and Servicing Agreement, on any Payment
Date, following the last day of a Collection Period as of which the Pool
Balance is 10% or less of the Initial Pool Balance, 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 Rating Agencies notice of
such redemption.  If the Notes are to be
redeemed pursuant to this Section 10.01(a), the Servicer or the Issuer
shall furnish notice of such election to the Indenture Trustee not later than
25 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 10.02
to each Holder of the Notes.

 

(b)                                 In
the event that the assets of the Trust are sold pursuant to Section 9.02
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 10.01(b),
the Servicer or the Issuer shall, to the extent practicable, furnish notice of
such event to the Indenture Trustee not later than 25 days prior to the
Redemption Date whereupon all such amounts shall be payable on the Redemption
Date.

 

SECTION 10.02.  Form of Redemption Notice.  (a)  Notice of redemption under Section 10.01(a) shall
be given by the Indenture Trustee by first-class mail, postage prepaid,

 

50

 

mailed not less than five
days prior to the applicable Redemption Date to 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)                               the
place where such Notes are to be surrendered for payment of the Redemption
Price (which shall be the office or agency of the Issuer to be maintained as
provided in Section 3.02); and

 

(iv)                              the
CUSIP number.

 

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 10.01(b) is not required to be given
to Noteholders.

 

SECTION 10.03.  Notes Payable on Redemption Date.  The Notes or portions thereof to be redeemed
shall, following notice of redemption as required by Section 10.02 (in the
case of redemption pursuant to Section 10.01(a)), on the Redemption Date
become due and payable at the Redemption Price and (unless the Issuer shall
default in the payment of the Redemption Price) no interest shall accrue on the
Redemption Price for any period after the date to which accrued interest is
calculated for purposes of calculating the Redemption Price.

 

ARTICLE XI

 

MISCELLANEOUS

 

SECTION 11.01.  Compliance Certificates and Opinions, etc.  (a)  Upon any application or request by
the Issuer to the Indenture Trustee to take any action under any provision of
this Indenture, the Issuer shall furnish to the Indenture Trustee (i) an
Officer’s Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with, (ii) an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with and (iii) (if
required by the TIA) an Independent Certificate from a firm of certified public
accountants meeting the applicable requirements of this Section, 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:

 

51

 

(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)                                 (i) 
Prior to the deposit of any Collateral or other property or securities with the
Indenture Trustee that is to be made the basis for the release of any property
or securities subject to the lien of this Indenture, the Issuer shall, in
addition to any obligation imposed in Section 11.01(a) or elsewhere
in this Indenture, furnish to the Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of each person signing such certificate as to
the fair value (within 90 days of such deposit) to the Issuer of the Collateral
or other property or securities to be so deposited.

 

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

 

(iii)                               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
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.

 

(iv)                              Whenever
the Issuer is required to furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of any signer thereof as to the

 

52

 

matters described in clause (iii) above, the Issuer
shall also furnish to the Indenture Trustee an Independent Certificate as to
the same matters if the fair value of the property or securities and of all
other property other than 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 (iii) above and this clause (iv), equals 10% or more of the
Outstanding Amount of the Notes, but such certificate need not be furnished in
the case of any release of property or securities if the fair value thereof as
set forth in the related Officer’s Certificate is less than $25,000 or less
than one percent of the then Outstanding Amount of the Notes.

 

(v)                                 Notwithstanding
Section 2.09, Section 3.10(b) 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 11.02.  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
certificate or opinion is based are erroneous. 
Any such certificate of an Authorized Officer or Opinion of Counsel may
be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Servicer, the
Seller, the Issuer or the Administrator, stating that the information with
respect to such factual matters is in the possession of the Servicer, the
Seller, the Issuer or the Administrator, 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.

 

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

 

53

 

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 11.03.  Acts of Noteholders.  (a)  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Noteholders may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such Noteholders in
person or by agents duly appointed in writing; and except as herein otherwise
expressly provided such action shall become effective when such instrument or
instruments are delivered to the 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 6.01) 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 manner that the Indenture Trustee deems sufficient.

 

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

 

(d)                                 Any
request, demand, authorization, direction, notice, consent, waiver or other
action by the 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 11.04.  Notices, etc., to Indenture Trustee,
Issuer and Rating Agencies.  Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Noteholders or other documents provided or permitted by this Indenture 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 made, given, furnished or filed in writing, or sent
by facsimile, to or with the Indenture Trustee and received 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 in writing and mailed, first-class, postage prepaid,
or sent by facsimile, to the Issuer addressed to:  John Deere Owner Trust 2005, in care of U.S.
Bank Trust National Association, 209 South LaSalle Street, Suite 300,
Chicago, Illinois 60604, Attention:  Corporate Trust Administration, facsimile No.:
312-325-8905, or at any other address previously furnished in writing to the
Indenture Trustee by the Issuer.  The
Issuer shall promptly transmit any notice received by it from the Noteholders
to the Indenture Trustee.

 

Notices required to be given to the Rating Agencies by
the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered or mailed by certified

 

54

 

mail, return receipt requested to (i) in the case of Moody’s, at
the following address:  Moody’s Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New
York 10007 and (ii) in the case of Standard & Poor’s, at the
following address:  Standard &
Poor’s Ratings Services, 55 Water Street, New York, New York 10041, Attention
of Asset Backed Surveillance Department or as to each of the foregoing, at such
other address as shall be designated by written notice to the other parties.

 

SECTION 11.05.  Notices to Noteholders; Waiver.  Where this Indenture provides for notice to
Noteholders of any event, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if in writing and mailed, first-class,
postage prepaid to each Noteholder affected by such event, at his address as it
appears on the Note Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice.  In any case where notice to Noteholders is
given by mail, neither the failure to mail such notice nor any defect in any
notice so mailed to any particular Noteholder shall affect the sufficiency of
such notice with respect to other Noteholders, and any notice that is mailed in
the manner herein provided shall conclusively be presumed to have been duly
given.

 

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.

 

SECTION 11.06.  Alternate Payment and Notice Provisions.  Notwithstanding any provision of this
Indenture or any of the Notes to the contrary, to the extent satisfactory to
the Indenture Trustee, 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.  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 11.07.  Conflict with Trust Indenture Act.  If any provision hereof limits, qualifies or
conflicts with another provision hereof that is required to be included in this
indenture by any of the provisions of the Trust Indenture Act, such required
provision shall control.

 

55

 

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

 

SECTION 11.08.  Effect of Headings and Table of Contents.  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

SECTION 11.09.  Successors and Assigns.  All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed or not.

 

All agreements of the Indenture Trustee in this
Indenture shall bind its successors, co-trustees and agents of the Indenture
Trustee.

 

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

 

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

 

SECTION 11.12.  Legal Holidays.  In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the date on which nominally due.

 

SECTION 11.13.  GOVERNING LAW.  THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

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.

 

56

 

SECTION 11.16.  Trust Obligation.  No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the
Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in 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 Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee
or of any successor or assign of the Indenture Trustee or the Owner Trustee 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 any 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 Articles VI, VII and VIII of the Trust
Agreement.

 

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, prior to the end of the period that is one year and one day after there
has been paid in full all debt issued by any securitization vehicle in respect
of which the Seller holds any interest, they will not institute against the
Seller or the Trust, or join in, or assist or encourage others to institute,
any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or State bankruptcy or similar law.

 

SECTION 11.18.  Subordination Agreement.  Each Noteholder, by accepting a Note, hereby
covenants and agrees that, to the extent it is deemed to have any interest in
any assets of the Seller, or a securitization vehicle related to the Seller,
dedicated to other debt obligations of the Seller or debt obligations of any
other securitization vehicle related to the Seller, its interest in those
assets is subordinate to claims or rights of such other debtholders to those
other assets.  Furthermore, each
Noteholder, by accepting a Note, hereby covenants and agrees that such
agreement constitutes a subordination agreement for purposes of Section 510(a) of
the Bankruptcy Code.

 

SECTION 11.19.  No Recourse.  Notwithstanding any provisions herein to the
contrary, all of the obligations of the Issuer under or in connection with the
Notes and this Indenture are nonrecourse obligations of the Issuer payable
solely from the Collateral and following realization of the Collateral and its
reduction to zero, any claims of the Noteholders and the Indenture Trustee
against the Issuer shall be extinguished and shall not thereafter revive.  It is understood that the foregoing
provisions of this Section 11.19 shall not (i) prevent recourse to
the Collateral for the sums due or to become due under any security, instrument
or agreement which is part of the Collateral or (ii) constitute a waiver,
release or discharge of any indebtedness or obligation evidenced by the Notes
or secured by this Indenture (to the extent it relates to the obligation to
make payments on the Notes) until such Collateral has been realized and reduced
to zero, whereupon any outstanding indebtedness or obligation in respect of the
Notes shall be extinguished and shall not thereafter revive.  It is further understood that the foregoing

 

57

 

provisions of this Section 11.19 shall not limit the right of any
Person to name the Issuer as a party defendant in any Proceeding or in the
exercise of any other remedy under the Notes or this Indenture, so long as no
judgment in the nature of a deficiency judgment shall be asked for or (if
obtained) enforced against any such Person or entity.

 

SECTION 11.20.  Inspection.  The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer’s normal business hours, to examine all the books of account, records,
reports, and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by independent certified public accountants,
and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s
officers, employees, and independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested.  The Indenture Trustee shall and shall cause
its representatives to hold in confidence all such information except to the
extent disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

 

SECTION 11.21.  Limitation of Liability.  It is expressly understood that (a) this
Indenture is executed and delivered by U.S. Bank Trust National Association,
not individually or personally but solely as Owner Trustee, in the exercise of
the powers and authority conferred and vested in it under the Trust Agreement,
dated as of May 15, 2005 (the “Trust Agreement”), between John Deere
Receivables, Inc. and U.S. Bank Trust National Association, (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 U.S. Bank Trust National Association, but is made and
intended for the purpose for binding only the Issuer and (c) under no
circumstances shall U.S. Bank Trust National Association be personally liable
for the breach or failure of any obligation, representation, warranty or
covenant made or undertaken by the Issuer under this Indenture or the other
related documents.

 

58

 

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.

 

	
   

  	
  JOHN DEERE OWNER TRUST
  2005,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  U.S. BANK TRUST
  NATIONAL

  ASSOCIATION,

  
	
   

  	
   

  	
  not in its individual
  capacity but solely as

  Owner Trustee,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Melissa A. Rosal

  	
   

  
	
   

  	
   

  	
  Name: Melissa A. Rosal

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
  not in its individual
  capacity but solely as

  Indenture Trustee and with respect to Section

  8.03(d) as Securities Intermediary,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Bobko

  	
   

  
	
   

  	
   

  	
  Name: John Bobko

  
	
   

  	
   

  	
  Title:  Vice President

  

 

59

 

EXHIBIT A

 

Schedule of Receivables

 

[To be delivered to the Trust at Closing]

 

 

EXHIBIT B

 

[Form of Sale and Servicing Agreement]

 

 

EXHIBIT C

 

[Form of Depository Agreement]

 

 

EXHIBIT D

 

	
  REGISTERED 

  	
  $183,900,000

  
	
   

  	
   

  
	
  No. R

  	
   

  

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

CUSIP NO. 244243 BK6

 

[Unless this Note is presented by an authorized
representative of The Depository Trust Company, a New York corporation (“DTC”),
to the issuer or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC) - ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.]

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS

AS SET FORTH HEREIN.  ACCORDINGLY, THE
OUTSTANDING

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS

THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

 

JOHN DEERE OWNER TRUST 2005

 

3.396% ASSET BACKED NOTES,

CLASS A-1

 

John Deere Owner Trust 2005, a statutory 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 [          ]
DOLLARS payable on each Payment Date in an amount equal to the result obtained
by multiplying (i) a fraction the numerator of which is $[INSERT INITIAL
PRINCIPAL AMOUNT OF NOTE] and the denominator of which is $183,900,000 by (ii) the
aggregate amount, if any, payable from the Note Distribution Account in respect
of principal of the Class A-1 Notes pursuant to Section 8.02(c) of
the Indenture; provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the earlier of June 15,
2006 and the Redemption Date, if any, pursuant to Section 10.01(a) of
the Indenture.  The Issuer will pay
interest on this Note at the Class A-1 Note Interest Rate on each Payment
Date until the principal of this Note is paid or made available for payment, on
the principal amount of this Note outstanding on the preceding Payment Date
after giving effect to all payments of principal made on such preceding Payment
Date (or on the initial principal amount of this Note from and including May 26,
2005 in the case of the first Payment Date). 
Interest on this Note will accrue for each Payment Date from and
including the most recent Payment Date (or, if no interest has yet been paid on
this Note, from and including May 26, 2005) to but excluding such Payment
Date.  Interest will be computed on the
basis of the actual number of days in the period for which such interest is
payable divided by

 

D-1

 

360.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

 

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

 

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

 

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

 

D-2

 

IN WITNESS WHEREOF, the Issuer has caused this
instrument to be signed, manually or in facsimile, by its Authorized Officer.

 

	
  Date: 

  	
  JOHN DEERE OWNER TRUST 2005,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  U.S. BANK TRUST
  NATIONAL

  ASSOCIATION,

  
	
   

  	
   

  	
  not in its individual
  capacity but solely as

  Owner Trustee under the Trust Agreement,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  not in its individual
  capacity

  
	
   

  	
  but solely as Indenture
  Trustee,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

D-3

 

[REVERSE OF NOTE]

 

This Note is one of the Class A-1 Notes of a duly
authorized issue of Notes of the Issuer, designated as its Asset Backed Notes,
all issued under an Indenture dated as of May 15, 2005 (such indenture, as
supplemented or amended, is herein called the “Indenture”), between the Issuer
and The Bank of New York, as indenture 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 Notes are and will be equally and ratably secured
by the collateral pledged as security therefor as provided in the Indenture.

 

Principal of the Notes will be payable on each Payment
Date in an amount described on the face hereof.

 

As described above, the entire unpaid principal amount
of, together with accrued and unpaid interest on, this Note shall be due and
payable on the earlier of June 15, 2006 and the Redemption Date, if any,
pursuant to Section 10.01(a) of the Indenture.  Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable on the date on
which an Event of Default shall have occurred and be continuing and the Indenture
Trustee or the 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 5.02 of the
Indenture.  All principal payments on the
Notes of a Class shall be made pro rata to the Noteholders of such Class entitled
thereto.

 

Payments of interest on this Note due and payable on
each Payment Date, together with the installment of principal, if any, to the
extent not in full payment of this Note, shall be made by check mailed to the
Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee.  Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) effected by any payments made on any Payment Date shall be binding upon
all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon.  If funds are expected to be
available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed within five days of such Payment Date and
the amount then due and payable shall be payable

 

D-4

 

only upon presentation and surrender of this Note at the Indenture
Trustee’s principal Corporate Trust Office or at the office of the Indenture
Trustee’s agent appointed for such purposes located in The City of New York.

 

The Issuer shall pay interest on overdue installments
of interest at a rate per annum equal to the sum of (i) the Class A-1
Note Interest Rate and (ii) 1.0%, to the extent lawful.

 

As provided in the Indenture, the Notes may be
redeemed in whole, but not in part, at the option of the Servicer, on any
Payment Date, following the last day of a Collection Period as of which the
Pool Balance is 10% or less of the Initial Pool Balance.

 

As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
his attorney duly authorized in writing, with such signature guaranteed and
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 no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as
any such Person may have expressly agreed and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

 

Each Noteholder or Note Owner, by acceptance of a Note
or, in the case of a Note Owner, a beneficial interest in a Note covenants and
agrees that prior to the end of the period that is one year and one day after
there has been paid in full all debt issued by any securitization vehicle in
respect of which the Seller holds any interest, they will not institute against
the Seller or the Trust, or join in, or assist or encourage others to institute,
any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or State bankruptcy or similar law.

 

D-5

 

Prior to the due presentment for registration of
transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee shall 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.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time
Outstanding.  The Indenture also contains
provisions permitting the 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 Holder of this Note (or any one or 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 Issuer has entered into the Indenture and this
Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the
Collateral.  Each Noteholder, by its
acceptance of a Note (and each Note Owner by its acceptance of a beneficial
interest in a Note), will be deemed to agree to treat the Notes for federal,
State and local income and franchise tax purposes as indebtedness.

 

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 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.

 

D-6

 

Anything herein to the contrary notwithstanding, except
as expressly provided in the Basic Documents, neither U.S. Bank Trust National
Association in its individual capacity, The Bank of New York, in its individual
capacity, 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 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.

 

D-7

 

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:

  	
   

  	
   

  	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Indenture Trustee
  which requirements will include membership or participation in STAMP or such
  other “signature guarantee program” as may be determined by the Indenture
  Trustee in addition to, or in substitution for, STAMP, all in accordance with
  the Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  

 

D-8

 

EXHIBIT E

 

	
  REGISTERED

  	
   

  	
  $169,000,000

  
	
   

  	
   

  	
   

  
	
  No. R

  	
   

  	
   

  

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

CUSIP NO. 244243 BL4

 

[Unless this Note is presented by an authorized
representative of The Depository Trust Company, a New York corporation (“DTC”),
to the issuer or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC) - ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.]

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS

AS SET FORTH HEREIN.  ACCORDINGLY, THE
OUTSTANDING

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS

THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

 

JOHN DEERE OWNER TRUST 2005

 

3.79% ASSET BACKED NOTES,

CLASS A-2

 

John Deere Owner Trust 2005, a statutory 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 [           ]
DOLLARS payable on each Payment Date in an amount equal to the result obtained
by multiplying (i) a fraction the numerator of which is $[INSERT INITIAL
PRINCIPAL AMOUNT OF NOTE] and the denominator of which is $169,000,000 by (ii) the
aggregate amount, if any, payable from the Note Distribution Account in respect
of principal of the Class A-2 Notes pursuant to Section 8.02(c) of
the Indenture; provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the earlier of December 17,
2007 and the Redemption Date, if any, pursuant to Section 10.01(a) of
the Indenture.  Except as provided in the
Indenture, no payments of principal of the Class A-2 Notes shall be made
until the principal of the Class A-1 Notes has been paid in its entirety.  The Issuer will pay interest on this Note at
the Class A-2 Note Interest Rate on each Payment Date until the principal
of this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date after giving effect to all
payments of principal made on such preceding Payment Date (or on the initial
principal amount of this Note from and including May 26, 2005 in the case
of

 

E-1

 

the first Payment Date). 
Interest on this Note will accrue for each Payment Date from and
including the 15th day of the month preceding such Payment Date (or, from and
including , May 26, 2005 in the case of the first Payment Date) to and
including the 14th day of the month of such Payment Date.  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.

 

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.

 

E-2

 

IN WITNESS WHEREOF, the Issuer has caused this
instrument to be signed, manually or in facsimile, by its Authorized Officer.

 

	
   

  	
  Date

  	
  JOHN DEERE OWNER TRUST 2005,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  U.S. BANK TRUST
  NATIONAL ASSOCIATION,

  
	
   

  	
   

  	
  not in its individual
  capacity but solely as

  Owner Trustee under the Trust Agreement,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  THE BANK OF NEW YORK,

  	
   

  
	
   

  	
  not in its individual
  capacity

  	
   

  
	
   

  	
  but solely as Indenture
  Trustee,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

E-3

 

[REVERSE OF NOTE]

 

This Note is one of the Class A-2 Notes of a duly
authorized issue of Notes of the Issuer, designated as its Asset Backed Notes,
all issued under an Indenture dated as of May 15, 2005 (such indenture, as
supplemented or amended, is herein called the “Indenture”), between the Issuer
and The Bank of New York, as indenture 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 Notes are and will be equally and ratably secured
by the collateral pledged as security therefor as provided in the Indenture.

 

Principal of the Notes will be payable on each Payment
Date in an amount described on the face hereof.

 

As described above, the entire unpaid principal amount
of, together with accrued and unpaid interest on, this Note shall be due and
payable on the earlier of December 17, 2007 and the Redemption Date, if
any, pursuant to Section 10.01(a) of the Indenture.  Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable on the date on
which an Event of Default shall have occurred and be continuing and the
Indenture Trustee or the 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 5.02 of the
Indenture.  All principal payments on the
Notes of a Class shall be made pro rata to the Noteholders of such Class entitled
thereto.

 

Payments of interest on this Note due and payable on
each Payment Date, together with the installment of principal, if any, to the
extent not in full payment of this Note, shall be made by check mailed to the
Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee.  Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) effected by any payments made on any Payment Date shall be binding upon
all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon.  If funds are expected to be
available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed within five days of such Payment Date and
the amount then due and payable shall be payable

 

E-4

 

only upon presentation and surrender of this Note at the Indenture
Trustee’s principal Corporate Trust Office or at the office of the Indenture
Trustee’s agent appointed for such purposes located in The City of New York.

 

The Issuer shall pay interest on overdue installments
of interest at a rate per annum equal to the sum of (i) the Class A-2
Note Interest Rate and (ii) 1.0%, to the extent lawful.

 

As provided in the Indenture, the Notes may be
redeemed in whole, but not in part, at the option of the Servicer, on any
Payment Date, following the last day of a Collection Period as of which the
Pool Balance is 10% or less of the Initial Pool Balance.

 

As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
his attorney duly authorized in writing, with such signature guaranteed and
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 no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as
any such Person may have expressly agreed and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.

 

Each Noteholder or Note Owner, by acceptance of a Note
or, in the case of a Note Owner, a beneficial interest in a Note covenants and
agrees that prior to the end of the period that is one year and one day after
there has been paid in full all debt issued by any securitization vehicle in
respect of which the Seller holds any interest, they will not institute against
the Seller or the Trust, or join in, or assist or encourage others to
institute, any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or State bankruptcy or similar law.

 

E-5

 

Prior to the due presentment for registration of
transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee shall 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.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time
Outstanding.  The Indenture also contains
provisions permitting the 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 Holder of this Note (or any one or 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 Issuer has entered into the Indenture and this
Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the
Collateral.  Each Noteholder, by its
acceptance of a Note (and each Note Owner by its acceptance of a beneficial
interest in a Note), will be deemed to agree to treat the Notes for federal,
State and local income and franchise tax purposes as indebtedness.

 

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 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.

 

E-6

 

Anything herein to the contrary notwithstanding,
except as expressly provided in the Basic Documents, neither U.S. Bank Trust
National Association in its individual capacity, The Bank of New York, in its
individual capacity, 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 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.

 

E-7

 

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:

  	
   

  	
   

  	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Indenture Trustee
  which requirements will include membership or participation in STAMP or such
  other “signature guarantee program” as may be determined by the Indenture
  Trustee in addition to, or in substitution for, STAMP, all in accordance with
  the Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  

 

E-8

 

EXHIBIT F

 

	
  REGISTERED

  	
   

  	
  $215,000,000

  
	
   

  	
   

  	
   

  
	
  No. R

  	
   

  	
   

  

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

CUSIP NO. 244243 BM2

 

[Unless this Note is presented by an authorized
representative of The Depository Trust Company, a New York corporation (“DTC”),
to the issuer or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC) - ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.]

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS

AS SET FORTH HEREIN.  ACCORDINGLY, THE
OUTSTANDING

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS

THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

 

 

JOHN DEERE OWNER TRUST 2005

 

3.98% ASSET BACKED NOTES,

CLASS A-3

 

John Deere Owner Trust 2005, a statutory 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 [         ]
DOLLARS payable on each Payment Date in an amount equal to the result obtained
by multiplying (i) a fraction the numerator of which is $[INSERT INITIAL
PRINCIPAL AMOUNT OF NOTE] and the denominator of which is $215,000,000 by (ii) the
aggregate amount, if any, payable from the Note Distribution Account in respect
of principal of the Class A-3 Notes pursuant to Section 8.02(c) of
the Indenture; provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the earlier of June 15,
2009 and the Redemption Date, if any, pursuant to Section 10.01(a) of
the Indenture.  Except as provided in the
Indenture, no payments of principal of the Class A-3 Notes shall be made
until the principal of each of the Class A-1 Notes and the Class A-2
Notes has been paid in its entirety.  The
Issuer will pay interest on this Note at the Class A-3 Note Interest Rate
on each Payment Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Payment Date after giving effect to all payments of principal made on such
preceding Payment Date (or on the initial principal amount of this Note from
and including May 26, 2005 in the case of the first Payment Date).  Interest on this Note will accrue for each
Payment Date

 

F-1

 

from and including the 15th day of the month preceding such Payment
Date (or from and including May 26, 2005 in the case of the first Payment
Date) to and including the 14th day of the month of such Payment Date.  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.

 

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.

 

F-2

 

IN WITNESS WHEREOF, the Issuer has caused this
instrument to be signed, manually or in facsimile, by its Authorized Officer.

 

	
   

  	
  Date:

  	
  JOHN DEERE OWNER TRUST
  2005,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  U.S. BANK TRUST
  NATIONAL

  
	
   

  	
   

  	
  ASSOCIATION,

  
	
   

  	
   

  	
  not in its individual
  capacity

  
	
   

  	
   

  	
  but solely as Owner
  Trustee

  
	
   

  	
   

  	
  under the Trust
  Agreement,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  not in its individual
  capacity

  
	
   

  	
  but solely as Indenture
  Trustee,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

F-3

 

[REVERSE OF NOTE]

 

This Note is one of the Class A-3 Notes of a duly
authorized issue of Notes of the Issuer, designated as its Asset Backed Notes,
all issued under an Indenture dated as of May 15, 2005 (such indenture, as
supplemented or amended, is herein called the “Indenture”), between the Issuer
and The Bank of New York, as indenture 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 Notes are and will be equally and ratably secured
by the collateral pledged as security therefor as provided in the Indenture.

 

Principal of the Notes will be payable on each Payment
Date in an amount described on the face hereof.

 

As described above, the entire unpaid principal amount
of this Note shall be due and payable on the earlier of June 15, 2009 and
the Redemption Date, if any, pursuant to Section 10.01(a) of the
Indenture.  Notwithstanding the
foregoing, the entire unpaid principal amount of the Notes shall be due and
payable on the date on which an Event of Default shall have occurred and be
continuing and the Indenture Trustee or the 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 5.02
of the Indenture.  All principal payments
on the Notes of a Class shall be made pro rata to the Noteholders of such Class entitled
thereto.

 

Payments of interest on this Note due and payable on
each Payment Date, together with the installment of principal, if any, to the
extent not in full payment of this Note, shall be made by check mailed to the
Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee.  Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note Register
as of the applicable Record Date without requiring that this Note be submitted
for notation of payment.  Any reduction
in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon.  If funds are expected to be
available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed within five days of such Payment Date and
the amount then due and payable shall be payable

 

F-4

 

only upon presentation and surrender of this Note at the Indenture
Trustee’s principal Corporate Trust Office or at the office of the Indenture
Trustee’s agent appointed for such purposes located in The City of New York.

 

The Issuer shall pay interest on overdue installments
of interest at a rate per annum equal to the sum of (i) the Class A-3
Note Interest Rate and (ii) 1.0%, to the extent lawful.

 

As provided in the Indenture, the Notes may be
redeemed in whole, but not in part, at the option of the Servicer, on any
Payment Date, following the last day of a Collection Period as of which the
Pool Balance is 10% or less of the Initial Pool Balance.

 

As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
his attorney duly authorized in writing, with such signature guaranteed and
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 no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as
any such Person may have expressly agreed and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

 

Each Noteholder or Note Owner, by acceptance of a Note
or, in the case of a Note Owner, a beneficial interest in a Note covenants and
agrees that by prior to the end of the period that is one year and one day
after there has been paid in full all debt issued by any securitization vehicle
in respect of which the Seller holds any interest, they will not institute
against the Seller or the Trust, or join in, or assist or encourage others to
institute, any institution against the Seller or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or State bankruptcy or similar law.

 

F-5

 

Prior to the due presentment for registration of
transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee shall 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.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding.  The Indenture also contains provisions
permitting the 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 Holder of
this Note (or any one or 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 Issuer has entered into the Indenture and this
Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the
Collateral.  Each Noteholder, by its
acceptance of a Note (and each Note Owner by its acceptance of a beneficial
interest in a Note), will be deemed to agree to treat the Notes for federal,
State and local income and franchise tax purposes as indebtedness.

 

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 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.

 

F-6

 

Anything herein to the contrary notwithstanding,
except as expressly provided in the Basic Documents, neither U.S. Bank Trust
National Association in its individual capacity, The Bank of New York, in its
individual capacity, 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 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.

 

F-7

 

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:

  	
   

  	
   

  	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Indenture Trustee
  which requirements will include membership or participation in STAMP or such
  other “signature guarantee program” as may be determined by the Indenture
  Trustee in addition to, or in substitution for, STAMP, all in accordance with
  the Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  

 

F-8

 

EXHIBIT G

 

	
  REGISTERED

  	
   

  	
  $172,600,000

  
	
   

  	
   

  	
   

  
	
  No. R

  	
   

  	
   

  

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

CUSIP NO. 244243 BN0

 

[Unless this Note is presented by an authorized
representative of The Depository Trust Company, a New York corporation (“DTC”),
to the issuer or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC) - ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.]

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS

AS SET FORTH HEREIN.  ACCORDINGLY, THE
OUTSTANDING

PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS

THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

 

 

JOHN DEERE OWNER TRUST 2005

 

4.16% ASSET BACKED NOTES,

CLASS A-4

 

John Deere Owner Trust 2005, a statutory 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 [           ]
DOLLARS payable on each Payment Date in an amount equal to the result obtained
by multiplying (i) a fraction the numerator of which is $[INSERT INITIAL
PRINCIPAL AMOUNT OF NOTE] and the denominator of which is $172,600,000 by (ii) the
aggregate amount, if any, payable from the Note Distribution Account in respect
of principal of the Class A-4 Notes pursuant to Section 8.02(c) of
the Indenture; provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the earlier of May 15,
2012 and the Redemption Date, if any, pursuant to Section 10.01(a) of
the Indenture.  Except as provided in the
Indenture, no payments of principal of the Class A-4 Notes shall be made
until the principal of each of the Class A-1 Notes, the Class A-2
Notes and the Class A-3 Notes has been paid in its entirety.  The Issuer will pay interest on this Note at
the Class A-4 Note Interest Rate on each Payment Date until the principal
of this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date after giving effect to all
payments of principal made on such preceding Payment Date (or on the initial
principal amount of this Note from and including May 26, 2005 in the case
of the first Payment Date).  Interest on
this Note will accrue

 

G-1

 

for each Payment Date from and including the 15th day of the month
preceding such Payment Date (or from and including May 26, 2005 in the
case of the first Payment Date) to and including the 14th day of the month of
such Payment Date.  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.

 

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.

 

G-2

 

IN WITNESS WHEREOF, the Issuer has caused this
instrument to be signed, manually or in facsimile, by its Authorized Officer.

 

	
   

  	
  Date:

  	
  JOHN DEERE OWNER TRUST
  2005,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  U.S. BANK TRUST
  NATIONAL

  
	
   

  	
   

  	
  ASSOCIATION,

  
	
   

  	
   

  	
  not in its individual
  capacity

  
	
   

  	
   

  	
  but solely as Owner
  Trustee

  
	
   

  	
   

  	
  under the Trust
  Agreement,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  not in its individual
  capacity

  
	
   

  	
  but solely as Indenture
  Trustee,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

G-3

 

[REVERSE OF NOTE]

 

This Note is one of the Class A-4 Notes of a duly
authorized issue of Notes of the Issuer, designated as its Asset Backed Notes,
all issued under an Indenture dated as of May 15, 2005 (such indenture, as
supplemented or amended, is herein called the “Indenture”), between the Issuer
and The Bank of New York, as indenture 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 Notes are and will be equally and ratably secured
by the collateral pledged as security therefor as provided in the Indenture.

 

Principal of the Notes will be payable on each Payment
Date in an amount described on the face hereof.

 

As described above, the entire unpaid principal amount
of, together with accrued and unpaid interest on, this Note shall be due and
payable on the earlier of May 15, 2012, and the Redemption Date, if any,
pursuant to Section 10.01(a) of the Indenture.  Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable on the date on
which an Event of Default shall have occurred and be continuing and the Indenture
Trustee or the 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 5.02 of the
Indenture.  All principal payments on the
Notes of a Class shall be made pro rata to the Noteholders of such Class entitled
thereto.

 

Payments of interest on this Note due and payable on
each Payment Date, together with the installment of principal, if any, to the
extent not in full payment of this Note, shall be made by check mailed to the
Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee.  Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) effected by any payments made on any Payment Date shall be binding upon
all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon.  If funds are expected to be
available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed within five days of such Payment Date and
the amount then due and payable shall be payable

 

G-4

 

only upon presentation and surrender of this Note at the Indenture
Trustee’s principal Corporate Trust Office or at the office of the Indenture
Trustee’s agent appointed for such purposes located in The City of New York.

 

The Issuer shall pay interest on overdue installments
of interest at a rate per annum equal to the sum of (i) the Class A-4
Note Interest Rate and (ii) 1.0%, to the extent lawful.

 

As provided in the Indenture, the Notes may be
redeemed in whole, but not in part, at the option of the Servicer, on any
Payment Date, following the last day of a Collection Period as of which the
Pool Balance is 10% or less of the Initial Pool Balance.

 

As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
his attorney duly authorized in writing, with such signature guaranteed and
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 no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as
any such Person may have expressly agreed and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

 

Each Noteholder or Note Owner, prior to the end of the
period that is one year and one day after there has been paid in full all debt
issued by any securitization vehicle in respect of which the Seller holds any
interest, they will not institute against the Seller or the Trust, or join in,
or assist or encourage others to institute, any institution against the Seller
or the Trust of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal
or State bankruptcy or similar law.

 

Prior to the due presentment for registration of
transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee shall treat the Person in

 

G-5

 

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.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time
Outstanding.  The Indenture also contains
provisions permitting the 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 Holder of this Note (or any one or 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 Issuer has entered into the Indenture and this
Note is issued with the intention that, for federal, State and local income and
franchise tax purposes, the Notes will qualify as indebtedness secured by the
Collateral.  Each Noteholder, by its
acceptance of a Note (and each Note Owner by its acceptance of a beneficial
interest in a Note), will be deemed to agree to treat the Notes for federal,
State and local income and franchise tax purposes as indebtedness.

 

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 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 Basic Documents, neither U.S. Bank Trust
National Association in its individual capacity, The Bank of New York, in its
individual capacity, any owner of a beneficial interest in the

 

G-6

 

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 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.

 

G-7

 

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:

  	
   

  	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Indenture Trustee
  which requirements will include membership or participation in STAMP or such
  other “signature guarantee program” as may be determined by the Indenture
  Trustee in addition to, or in substitution for, STAMP, all in accordance with
  the Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  

 

G-8Exhibit 10.1

 

	
   

  	
  Lehman Commercial Paper Inc.

  745 Seventh Avenue

  New York, New York 10019

  	
   

  	
  Lehman Brothers Inc.

  745 Seventh Avenue

  New York, New York 10019

  	
   

  

 

June 1, 2005

 

COMMITMENT
LETTER

 

Key Energy Services, Inc.

6 Destra Drive

Midland, Texas 79705

 

Ladies and Gentlemen:

 

This commitment letter agreement (together with all
exhibits and schedules hereto, the “Commitment Letter”)
will confirm the understanding and agreement among Lehman Commercial Paper Inc.
(“LCPI”), Lehman Brothers Inc., as
exclusive advisor, sole book-runner and sole lead arranger (“Lehman Brothers”), and Key Energy
Services, Inc., a Maryland corporation (together with each of its
subsidiaries, the “Company”) in connection with
the proposed refinancing of the Company’s $150.0 million revolving loan
facility (as amended from time to time prior to the date hereof, the “Existing Facility”) and, if the
maturity of the Company’s 63/8% Senior Notes due 2013
(the “63/8% Notes”) or 83/8%
Senior Notes due 2008 (the “83/8%
Notes” and, together with the 63/8% Notes,
the “Notes) is accelerated by reason of
the Specified Defaults described below or, if the Company elects to redeem or
repurchase any of the Notes, such Notes. 
The proposed refinancing of the Existing Facility and the Notes is
referred to herein as the “Refinancing”.

 

You have advised us that the
total funds needed for the Refinancing will be $625.0 million (consisting
of $150.0 million to refinance the aggregate principal amount of 63/8% Notes, $275.0 million
to refinance the
aggregate principal amount of 83/8% Notes, no more than
$130.1 million to refinance loans and letters of credit outstanding under
the Existing Facility, no more than $19.5 million for fees and expenses
payable in connection with the Refinancing, and the balance, together with
other cash on hand at the Company, to pay interest, premiums and other amounts
due upon the payment, repurchase or redemption of the Notes and to provide
financing for the working capital and general corporate purposes of the Company)
and have proposed that such funds be provided from (i) up to $75.0 million
of cash on hand at the Company and (ii) borrowings by the Company under new
$550.0 million Senior Credit Facilities that will consist of a $400.0 million delay
draw Senior Term Loan Facility (the “Senior Term Loan Facility”),
the proceeds of which will be available and used solely for the Refinancing of
Notes, a $65.0 million Revolving Credit Facility (the “Revolving
Credit Facility”) and a $85.0 million pre-funded letter of
credit facility (the “Letter of Credit Facility”
and together with the Revolving Credit Facility and the Senior Term Loan Facility, the “Credit Facilities”).  You also have informed us that no more than
$48.0 million of funded Loans and $82.1 million in letters of credit are currently
outstanding under the Existing Facility, that the Company will have on the
Closing Date (as defined herein), no outstanding indebtedness except the Credit
Facilities, the Notes (to the extent not redeemed or repaid on or before
acceleration) and $12.0 million in other indebtedness.  

 

1

 

1.                                   The Commitment.

 

(a)                              You have requested that LCPI (collectively with each
other financial institution that becomes a lender under the Credit Facilities,
the “Lenders”) commit to provide the
entire amount of the Credit Facilities upon the terms and subject to the
conditions set forth or referred to in this Commitment Letter and in the
Summary of Terms of Credit Facilities attached hereto as Exhibit A (the “Term Sheet”).

 

(b)                             Based on the foregoing and the terms hereof, LCPI is
pleased to confirm by this Commitment Letter its commitment to you (the “Commitment”) to provide or cause
one of its affiliates to provide the entire amount of the Credit Facilities.

 

(c)                              It is agreed that Lehman Brothers will act as the sole
and exclusive advisor, sole book-runner and sole lead arranger for the Credit
Facilities and that LCPI will act as the sole and exclusive Administrative
Agent and Syndication Agent for the Credit Facilities.  Each of Lehman Brothers and LCPI will perform
the duties and exercise the authority customarily performed and exercised by it
in its respective role.  You agree that no
other agents, co-agents, arrangers or book-runners will be appointed, no other
titles will be awarded and no compensation (other than that expressly
contemplated by the Term Sheet or the Fee Letter referred to below) will be
paid in connection with the Credit Facilities unless you and we shall so agree.

 

(d)                             The commitments and agreements of LCPI and Lehman
Brothers described herein are subject to: (i) there not having occurred
any event, development or circumstance (other than any such event, development
or circumstance which affects generally the segment of the oil and gas service
business in which the Company engages and does not disproportionately affect
the Company) since December 31, 2004 (the date of the most recent annual
financial statements delivered to the Lenders as of the date hereof), except
matters that have been publicly disclosed prior to the date of the Commitment
Letter, that has caused or could reasonably be expected to cause a material
adverse condition or material adverse change in or affecting (A) the financial
condition, results of operation, assets, liabilities, or value of the Company
and its subsidiaries, taken as a whole, or that calls into question in any
material respect the Projections (as defined below) previously supplied to the
Lenders or any of the material assumptions on which the Projections were
prepared or (B) the validity or enforceability of any of the credit documentation
or the rights and remedies of the Administrative Agent and the Lenders
thereunder (any of the foregoing, a “Material Adverse Change”);
(ii) Lehman Brothers and LCPI not having become aware after the date
hereof of any information or other matter affecting the Company or the
transactions contemplated hereby (the “Newly Discovered
Information”) that is inconsistent with any such information or
other matter disclosed to Lehman Brothers and LCPI by the Company (either in
writing or pursuant to due diligence conversations with the Company’s senior
management, attorneys, public accountants or the chairman of the Company’s
audit committee) on or prior to the date hereof (the “Prior
Disclosure”) if the discrepancy between the state of affairs
with respect to the Company or the transactions contemplated hereby as
reflected in the Newly Discovered Information, when compared to such state or
affairs as reflected in the Prior Disclosure, could reasonably be expected to be
or to result in a Material Adverse Change, (iii) there having not occurred
any material disruption or material adverse change, as determined by Lehman
Brothers in its sole discretion, in the financial or capital markets generally,
or in the markets for bank loan syndication in particular or affecting the syndication
or funding of bank loans (or the refinancing thereof) that may have a material adverse
impact on the ability to syndicate the Credit Facilities and (iv) the other conditions set forth
or referred to in the Term Sheet and the Funding Conditions attached hereto as Exhibit B
(the “Funding Conditions”).  The date on which the definitive documentation with
respect to the Credit Facilities (the “Definitive Documentation”)
shall have been executed and delivered and all Funding Conditions shall have
been satisfied shall be the closing date (the “Closing
Date”), which date shall not be later than the

 

2

 

Commitment
Expiration Date (defined below).  The
terms and conditions of such commitments hereunder and of the Credit Facilities
are not limited to those set forth herein and in the Term Sheet and the Funding
Conditions; those matters that are not covered by the provisions hereof or of
the Term Sheet or the Funding Conditions shall be consistent with the Term
Sheet or the Funding Conditions, as the case may be, customary for similar
financings and consistent with those matters in the Existing Facility (to the
extent provided in the Term Sheet), and shall be subject to the approval and
agreement of the applicable Lenders and the Company.

 

2.                                   Fees and Expenses.  In
consideration of the execution and delivery of this Commitment Letter by LCPI,
you agree to pay the fees and expenses set forth in Annex A-I to the Term Sheet
and in the Fee Letter, dated the date hereof (the “Fee
Letter”), among you, LCPI and Lehman Brothers.

 

3.                                   Indemnification.  

 

(a)                              The Company hereby agrees to indemnify and hold
harmless each of LCPI, Lehman Brothers, the other Lenders and each of their
respective officers, directors, partners, trustees, employees, affiliates,
shareholders, advisors, agents, attorneys and controlling persons (each, an “indemnified person”) from and
against any and all losses, claims, damages and liabilities to which any such
indemnified person may become subject arising out of or in connection with this
Commitment Letter, the Credit Facilities, the use of the proceeds therefrom,
the Refinancing, any of the other transactions contemplated by this Commitment
Letter, any other transaction related thereto or any claim, litigation,
investigation or proceeding relating to any of the foregoing, regardless of
whether any indemnified person is a party thereto, and to reimburse each indemnified
person upon demand for all legal and other expenses reasonably incurred by it
in connection with investigating, preparing to defend or defending, or
providing evidence in or preparing to serve or serving as a witness with
respect to, any lawsuit, investigation, claim or other proceeding relating to
any of the foregoing (including, without limitation, in connection with the
enforcement of the indemnification obligations set forth herein); provided, however, that no indemnified person shall be
entitled to indemnity hereunder in respect of any loss, claim, damage,
liability or expense to the extent that it is found by a final, non-appealable
judgment of a court of competent jurisdiction that such loss, claim, damage,
liability or expense resulted directly from the gross negligence or willful
misconduct of such indemnified person. 
In no event will any indemnified person be liable on any theory of
liability for consequential damages, lost profits or punitive damages as a
result of any failure to fund any of the Credit Facilities contemplated hereby
or otherwise in connection with the Credit Facilities.  No indemnified person shall be liable for any
damages arising from the use by unauthorized persons of Information or other
materials sent through electronic, telecommunications or other information
transmission systems that are intercepted by unauthorized persons, except to
the extent that such damages are found by a final, non-appealable judgment of a
court of competent jurisdiction that such damages resulted directly from the
gross negligence or willful misconduct of such indemnified person.

 

(b)                             The Company further agrees that, without the prior
written consent of each of LCPI and Lehman Brothers, which consent will not be
unreasonably withheld, it will not enter into any settlement of a lawsuit,
claim or other proceeding arising out of this Commitment Letter or the
transactions contemplated by this Commitment Letter unless such settlement
includes an explicit and unconditional release from the party bringing such
lawsuit, claim or other proceeding of all indemnified persons.

 

4.                                   Expiration of Commitment. 
The Commitment will expire at 5:00 p.m., New York City time, on June 1,
2005 unless at or prior to such time you shall previously have executed and returned
to Lehman Brothers a copy of this Commitment Letter and the Fee Letter and paid
the commitment fees contemplated by the Fee Letter to be payable on the date of
your execution and delivery hereof.  If
you do

 

3

 

so execute and deliver to Lehman Brothers this Commitment
Letter and the Fee Letter, and pay to Lehman Brothers such fees, LCPI agrees to
hold its Commitment available for you until the date (the “Commitment
Expiration Date”) that is the earliest
of (i) the date of receipt by LCPI and Lehman Brothers or written notice
from the Company of the termination of this Commitment Letter, (ii) the consummation
of any part of the Refinancing with the proceeds of any debt securities, loans,
credit facilities or other indebtedness for borrowed money other than the
Credit Facilities and the Existing Facility (provided that for purposes hereof,
waivers of the Existing Facility, or the indentures related to the Notes or
with respect to equipment leases, in each case, with respect to the Specified
Defaults (as defined herein), will not be deemed to be “any part” of the
Refinancing) and (iii) December 31, 2005.  The Commitment will expire at 5:00 p.m.,
New York City time, on the Commitment Expiration Date.

 

5.                                   Confidentiality.  

 

(a)                              This Commitment Letter and the terms and conditions
contained herein and therein may be publicly filed by the Company, however,
prior to such filing, this Commitment Letter may not be disclosed by the Company
to any person or entity (other than such of your agents and advisors as need to
know and agree to be bound by the provisions of this paragraph and as required
by law) without the prior written consent of LCPI and Lehman Brothers.  The Fee Letter and the terms and conditions
contained therein may not be disclosed by the Company to any person or entity
(other than such of your agents and advisors as need to know and agree to be
bound by the provisions of this paragraph and as required by law) without the
prior written consent of LCPI and Lehman Brothers.  

 

(b)                             You acknowledge that Lehman Brothers and its
affiliates (the term “Lehman Brothers” being understood to refer hereinafter in
this paragraph to include such affiliates, including LCPI) may be providing
debt financing, equity capital or other services (including financial advisory
services) to other companies in respect of which you may have conflicting
interests regarding the transactions described herein and otherwise.  Lehman Brothers shall not use confidential
information obtained from you by virtue of the transactions contemplated by
this Commitment Letter or its other relationships with you in connection with
the performance by Lehman Brothers of services for other companies, and Lehman
Brothers will not furnish any such information to other companies.  You also acknowledge that Lehman Brothers has
no obligation to use in connection with the transactions contemplated by this
Commitment Letter, or to furnish to you, confidential information obtained from
other companies.

 

6.                                   Assignment and Syndication.  

 

(a)                              The parties hereto agree that LCPI and Lehman Brothers
will have the right to syndicate the Credit Facilities and/or the Commitment to
a group of financial institutions or other investors, identified by us in
consultation with you.  Lehman Brothers
and LCPI shall manage all aspects of any such syndication, including decisions
as to the selection of institutions to be approached and when they will be
approached, the acceptance of commitments, the amounts offered, the amounts
allocated and the compensation provided, and the Company agrees to use commercially
reasonable efforts to assist Lehman Brothers and LCPI in such syndication
process, including, without limitation, (i) ensuring that the syndication
efforts benefit materially from the existing lending relationships of the
Company, (ii) arranging for direct contact between senior management and
advisors of the Company and the proposed Lenders, (iii) assisting in the
preparation of Confidential Information Memoranda and other marketing materials
to be used in connection with any syndication, including causing such
Confidential Information Memoranda to conform to market standards as reasonably
determined by Lehman Brothers and LCPI and, at the request of LCPI and Lehman Brothers,
the preparation of versions of the Confidential Information Memoranda that do
not contain material non-public information concerning the Company, its
affiliates or its securities for purposes of United States federal and state
securities laws, (iv) hosting, with LCPI and

 

4

 

Lehman Brothers,
one or more meetings of prospective Lenders, and, in connection with any such
Lender meeting, consulting with Lehman Brothers and LCPI with respect to the
presentations to be made at such meeting, and making available appropriate
officers and representatives to rehearse such presentations prior to such
meetings, as reasonably requested by Lehman Brothers and LCPI and (v) permitting
agents or advisors engaged by Lehman Brothers and LCPI to review the Company’s systems,
controls, books and records.  Furthermore,
you agree that the Commitment is conditioned upon the Company’s satisfaction of
the requirements of the foregoing provisions of this paragraph, if so requested
by Lehman Brothers, by a date sufficient to permit the syndication of the
Credit Facilities to be completed prior to the Closing Date.

 

(b)                             To assist Lehman Brothers and LCPI in their
syndication efforts, you agree promptly to prepare and provide to Lehman
Brothers and LCPI all information with respect to the Company, the Refinancing and
the other transactions contemplated hereby, including all financial information
and projections (the “Projections”),
as they may reasonably request.  You
hereby represent and covenant that (i) all information other than the
Projections (the “Information”) that has been
or will be made available to Lehman Brothers and LCPI by you or any of your
representatives is or will be, when furnished, complete and correct in all material
respects and does not or will not, when furnished, contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements contained therein not misleading in light of the circumstances
under which such statements are made and (ii) the Projections that have
been or will be made available to Lehman Brothers and LCPI by you or any of
your representatives have been or will be prepared in good faith based upon
reasonable assumptions believed by you to be reasonable at the time made.  You understand that in arranging and
syndicating the Credit Facilities and the Commitments we may use and rely on
the Information and Projections without independent verification thereof and
that you will promptly notify us of any changes in
circumstances that could be expected to call into question the continued
reasonableness of any material assumption underlying the Projections.

 

(c)                              To ensure an orderly and effective syndication of the
Credit Facilities, you agree that, from the date hereof until the termination
of the syndication as determined by Lehman Brothers, you will not, and will not
permit any of your affiliates to, syndicate or issue, attempt to syndicate or
issue, announce or authorize the announcement of the syndication or issuance
of, or engage in discussions concerning the syndication or issuance of, any
debt facility, or debt or preferred equity security of the Company or any of its
subsidiaries (other than the indebtedness contemplated hereby), including any renewals
or refinancings of any existing debt facility, without the prior written
consent of Lehman Brothers; provided that nothing herein shall restrict your
ability to negotiate waivers of the Specified Defaults with the lenders under
the Existing Facility, holders of the Notes or equipment lessors. 

 

7.                                   Survival.  The
provisions of this Commitment Letter relating to the payment of fees and
expenses, indemnification and contribution and confidentiality and the
provisions of Section 8 hereof will survive the expiration or termination
of any commitment hereunder or this Commitment Letter (including any
extensions) and the execution and delivery of definitive financing
documentation.

 

8.                                   Choice of Law; Jurisdiction; Waivers.

 

(a)                              This Commitment Letter shall be governed by and
construed in accordance with the laws of the State of New York.  To the fullest extent permitted by applicable
law, the Company hereby irrevocably submits to the non-exclusive jurisdiction
of any New York State court or Federal court sitting in the County of New York
in respect of any suit, action or proceeding arising out of or relating to the
provisions of this Commitment Letter or the Fee Letter and irrevocably agrees
that all claims in respect of any such suit, action or proceeding may be heard
and determined in any such court.  The
parties hereto hereby waive, to the fullest extent permitted by applicable law,
any objection that they may now or

 

5

 

hereafter have to
the laying of venue of any such suit, action or proceeding brought in any such
court, and any claim that any such suit, action or proceeding brought in any
such court has been brought in an inconvenient forum.   The parties hereto hereby
waive, to the fullest extent permitted by applicable law, any right to trial by
jury with respect to any action or proceeding arising out of or relating to
this Commitment Letter or the Fee Letter.

 

(b)                             No Lender shall be liable in any respect for any of
the obligations or liabilities of any other Lender under this letter or arising
from or relating to the transactions contemplated hereby.

 

9.                                   Miscellaneous.  

 

(a)                              This Commitment Letter may be executed in one or more
counterparts, each of which will be deemed an original, but all of which taken
together will constitute one and the same instrument.  Delivery of an executed signature page of
this Commitment Letter by facsimile transmission shall be effective as delivery
of a manually executed counterpart hereof.

 

(b)                             The Company may not assign any of its rights, or be
relieved of any of its obligations, without the prior written consent of each
of the Lenders, and any purported assignment by it without such consent shall
be void.  In connection with any
syndication of all or a portion of the Commitment, the rights and obligations
of each of the Lenders hereunder may be assigned, in whole or in part, as
provided above, and upon such assignment, such Lender shall be relieved and
novated hereunder from the obligations of such Lender with respect to any
portion of its Commitment that has been assigned as provided above.

 

(c)                              This Commitment Letter and the attached Exhibits and
Schedules set forth the entire understanding of the parties hereto as to the
scope of the Commitment and the obligations of the Lenders hereunder.  This Commitment Letter shall supersede all
prior understandings and proposals, whether written or oral, between any of the
Lenders and you relating to any financing or the transactions contemplated
hereby.  This Commitment Letter shall be
in addition to the agreements of the parties contained in the Fee Letter.

 

(d)                             This Commitment Letter has been and is made solely for
the benefit of the parties hereto, the indemnified persons, and their
respective successors and assigns, and nothing in this Commitment Letter,
expressed or implied, is intended to confer or does confer on any other person
or entity any rights or remedies under or by reason of this Commitment Letter
or the agreements of the parties contained herein.

 

(e)                              You acknowledge that the Lenders and Lehman Brothers
may be (or may be affiliated with) full service financial firms and as such
from time to time may effect transactions for their own account or the account
of customers, and hold long or short positions in debt or equity securities or
loans of companies that may be the subject of the transactions contemplated by
this Commitment Letter.  You hereby waive
and release, to the fullest extent permitted by law, any claims you have with
respect to any conflict of interest arising from such transactions, activities,
investments or holdings, or arising from the failure of LCPI, Lehman Brothers
or one or more Lenders or any of their respective affiliates to bring such
transactions, activities, investments or holdings to your attention.

 

(f)                                Lehman Brothers also will provide financial advisory
services to the Company with respect to the transaction to which this
Commitment Letter relates.  The Company
agrees that Lehman Brothers has the right to place advertisements in financial
and other newspapers and journals at its own expense describing its services to
the Company, provided that Lehman Brothers will submit a

 

6

 

copy of any such advertisements to the
Company for its approval, which approval shall not be unreasonably withheld.

 

(g)                             You agree to provide us, prior to the Closing Date,
with all documentation and other information reasonably requested by Lehman
Brothers and LCPI and required by bank regulatory authorities under applicable “know
your customer” and Anti-Money Laundering rules and regulations, including,
without limitation, the USA Patriot Act.

 

 

[Remainder of page intentionally
left blank]

 

7

 

If you are in agreement with the foregoing, kindly
sign and return to us the enclosed copy of this Commitment Letter.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  LEHMAN
  COMMERCIAL PAPER INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laurie B.
  Pepper

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Laurie B. Pepper

  
	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEHMAN BROTHERS
  INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laurie B.
  Pepper

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Laurie B. Pepper

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  
					

 

8

 

Accepted and agreed to as of the

date first above written:

 

KEY ENERGY SERVICES, INC.

 

 

	
  By:

  	
  /s/ William M. Austin

  	
   

  
	
   

  	
  Name: William M. Austin

  
	
   

  	
  Title: Senior Vice President & Chief
  Financial Officer

  

 

9

 

EXHIBIT A TO
COMMITMENT LETTER

 

SUMMARY OF TERMS OF CREDIT FACILITIES

 

Set forth below is a summary of certain of the
terms of the Credit Facilities, and the documentation related thereto.  Capitalized terms used and not otherwise
defined herein have the meanings set forth in the Commitment Letter to which
this Summary of Terms is attached and of which it forms a part.

 

	
  I.

  	
    Parties

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Borrower

  	
  Key Energy
  Services, Inc. (the “Borrower”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Guarantors

  	
  Each of the
  Borrower’s direct and indirect domestic subsidiaries, other than certain
  excluded subsidiaries of the Borrower to be determined consistent with the
  Existing Facility (the “Guarantors”;
  the Borrower and the Guarantors, collectively, the “Credit
  Parties”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Exclusive
  Advisor, Sole Lead Arranger and Sole Book-Runner

  	
  Lehman Brothers
  Inc. (in such capacity, the “Arranger”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Syndication
  Agent

  	
  Lehman
  Commercial Paper Inc. (in such capacity, the “Syndication
  Agent”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Administrative
  Agent

  	
  Lehman
  Commercial Paper Inc. (in such capacity, the “Administrative
  Agent”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Lenders

  	
  A syndicate of
  banks, financial institutions and other entities arranged by the Arranger
  (collectively, the “Lenders”).

  
	
   

  	
   

  	
   

  
	
  II.

  	
    Types and Amounts of
  Credit Facilities

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Senior
  Term Loan Facilities

  	
  A seven-year
  term loan facility (the “Senior Term Loan
  Facility”) in an aggregate principal amount equal to $400.0
  million (the loans thereunder, the “Senior Term Loans”).
  The Senior Term Loans shall be repayable in equal quarterly amounts equal to
  1% per annum with the outstanding principal amount due on the seventh
  anniversary of the Closing Date.

  
	
   

  	
   

  	
   

  
	
   

  	
  Availability

  	
  The Senior Term
  Loans shall be made no later than the Commitment Expiration Date in up to
  three drawings, the first of which will be not less than $150.0 million, and
  available and funded only on, or within 10 business days after, the day(s) on
  which the 83/8 Notes or the 63/8%
  Notes become due and payable in full upon acceleration based solely on the
  Specified Defaults or the days on which payment for the Borrower’s call for
  redemption or repurchase thereof is to be made or is due.

  
	
   

  	
   

  	
   

  
	
   

  	
  Purpose

  	
  The proceeds of
  the Senior Term Loans, together with other funds available to the Borrower,
  shall be used to 

  

 

A-1

 

	
   

  	
   

  	
  refinance the Notes. In the event that the
  maximum aggregate amount of the Senior Term Loans is greater than the amount
  required to refinance the Notes as a result of the Borrower’s use of cash on
  hand or proceeds of the Existing Facility or the Revolving Credit Facility to
  repurchase Notes, the proceeds of the Senior Term Loans may be used to
  replace the cash so used or repay such Revolving Credit Loans, to the extent
  of such excess.

  
	
   

  	
   

  	
   

  
	
   

  	
  Letter
  of Credit Facility

  	
  A five-year
  prefunded Letter of Credit Facility in an aggregate amount of up to $85.0
  million (the “Letter of Credit Facility”)
  all of which will be deposited by the Lenders under the Letter of Credit
  Facility on the Closing Date in an account (the “Credit-Linked
  Deposit Account”) held in the name of such Lenders with the
  Administrative Agent or the Issuing Lender. Amounts deposited in the
  Credit-Linked Deposit Account are referred to herein as the “Credit-Linked Deposit”. The
  Credit-Linked Deposit will be held by the Administrative Agent or the Issuing
  Lender as cash collateral for reimbursement obligations with respect to
  letters of credit issued pursuant to the Letter of Credit Facility (the “Letters of Credit”) and if the
  Borrower does not reimburse the Issuing Lender, in accordance with the terms
  of the Letter of Credit Facility, will be applied by the Administrative Agent
  or Issuing Lender as necessary to fund drawings under the Letters of Credit
  issued under the Letter of Credit Facility. One or more Lenders to be
  selected in the syndication process shall be the Issuing Lender (each such
  Lender in such capacity, an “Issuing Lender”)
  and the issuance of all such Letters of Credit shall be subject to
  the customary procedures of such Issuing Bank.

  
	
   

  	
   

  	
   

  
	
   

  	
  Availability

  	
  The Letter of
  Credit Facility shall be available during the period commencing on the
  Closing Date and ending on the fifth anniversary thereof (the “Letter of Credit Termination Date”).
  The aggregate amount of Letters of Credit at any time outstanding under the
  Letter of Credit Facility shall not exceed $85.0 million.

  
	
   

  	
   

  	
   

  
	
   

  	
  Maturity

  	
  The Letter of
  Credit Termination Date.

  
	
   

  	
   

  	
   

  
	
   

  	
  Purpose

  	
  Letters of
  Credit under the Letter of Credit Facility shall
  be used to refinance the letters of credit outstanding under the Existing
  Facility and additional letters of credit may be issued to support
  obligations incurred in the ordinary course of business by the Borrower and
  its subsidiaries.

  
	
   

  	
   

  	
   

  
	
   

  	
  Credit
  Linked Deposit

  	
  Any amounts remaining in the Credit-Linked Deposit Account after
  termination of all Letters of Credit and the 

  

 

A-2

 

	
   

  	
   

  	
  Letter of Credit Facility Termination Date shall be distributed to
  the Lenders under the Letter of Credit Facility. Prior to such time, such
  Lenders shall not have any right to withdraw funds, request the distribution
  of funds or request the investment of funds held in the Credit-Linked Deposit
  Account, provided that the Credit-Linked Deposit Amount shall at all times be
  invested in investments intended to yield a rate of return approximately
  equal to the one-month Eurodollar Rate less a margin to be determined. The
  obligations of the Lenders under the Letter of Credit Facility to reimburse
  the Issuing Bank for drawings under the Letter of Credit Facility will be
  secured by the Credit-Linked Deposit.

  
	
   

  	
   

  	
   

  
	
   

  	
  Revolving
  Credit Facility

  	
  A five-year
  revolving credit facility (the “Revolving Credit
  Facility”; together
  with the Senior Term Loan Facilities, and the Letter of Credit Facility, the “Credit Facilities”) in an
  aggregate principal amount equal to $65.0 million (the loans thereunder, the “Revolving Credit Loans”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Availability

  	
  The Revolving
  Credit Facility shall be available on a revolving basis during the period
  commencing on the Closing Date and ending on the fifth anniversary thereof
  (the “Revolving Credit Termination Date”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Letters of Credit

  	
  Up to $25.0
  million of the Revolving Credit Facility shall be available for the issuance
  of letters of credit (the “Revolving Facility
  Letters of Credit”) by an Issuing Lender. The face amount of
  any such outstanding Letters of Credit will reduce availability under the
  Revolving Credit Facility on a dollar-for-dollar basis.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  No Revolving
  Facility Letters of Credit or Letters of Credit issued under the Letter of
  Credit Facility shall have an expiration date after the earlier of
  (i) one year after the date of issuance and (ii) five business days
  prior to the Revolving Credit Termination Date or the Letter of Credit
  Facility Termination Date, as applicable; provided that
  any such Revolving Credit Letter or Credit or Letter of Credit issued under
  the Letter of Credit Facility with a one-year tenor may provide for the
  renewal thereof for additional one-year periods (which shall in no event
  extend beyond the date referred to in clause (ii) above).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Drawings under any
  Revolving Facility Letters of Credit or Letters of Credit issued under the
  Letter of Credit Facility shall be reimbursed by the Borrower (whether with
  its own funds or with the proceeds of Revolving Credit Loans) on the same
  business day.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To the extent that the
  Borrower does not so reimburse the Issuing Lender, the Lenders under the
  Revolving Credit Facility shall be irrevocably and unconditionally 

  

 

A-3

 

	
   

  	
   

  	
  obligated to reimburse the Issuing Lender on a pro rata basis.

  
	
   

  	
   

  	
   

  
	
   

  	
  Swing Line Loans

  	
  A portion of the
  Revolving Credit Facility not in excess of an amount to be agreed will be
  available for swing line loans (the “Swing Line Loans”)
  from Lehman Commercial Paper Inc. (in such capacity, the “Swing
  Line Lender”) on same-day notice. Any such Swing Line Loans
  will reduce availability under the Revolving Credit Facility on a
  dollar-for-dollar basis. Each Lender under the Revolving Credit Facility will
  acquire an irrevocable and unconditional pro rata
  participation in each Swing Line Loan.

  
	
   

  	
   

  	
   

  
	
   

  	
  Maturity

  	
  The Revolving
  Credit Termination Date.

  
	
   

  	
   

  	
   

  
	
   

  	
  Purpose

  	
  Loans and
  Letters of Credit under the Revolving Credit Facility shall
  be used to refinance the Existing Facility, pay fees and expenses of the
  Refinancing and finance the working capital needs and general corporate
  purposes of the Borrower and its subsidiaries in the ordinary course of
  business. Amounts under the Revolving Credit Facility may also be used to
  repurchase in open market transactions the Notes subject to other conditions
  to be determined.

  
	
   

  	
   

  	
   

  
	
  III.

  	
    Certain Payment
  Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Fees
  and Interest Rates

  	
  As set forth on
  Annex A-I.

  
	
   

  	
   

  	
   

  
	
   

  	
  Optional Prepayments and

  Commitment Reductions

  	
  

  Loans may be prepaid in minimum amounts to be agreed upon. Optional
  prepayments of the Senior Term Loans shall be applied to the installments
  thereof in inverse order of maturity and may not be reborrowed.

  
	
   

  	
   

  	
   

  
	
   

  	
  Mandatory Prepayments and Commitment
  Reductions

  	
  

  The following amounts shall be applied to prepay the Senior Term Loans:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)            50% of the net cash proceeds of any
  sale or issuance of equity (other than issuances pursuant to employee stock
  plans, to fund permitted acquisitions and other exceptions to be agreed)
  after the Closing Date by the Borrower;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)           100% of the net proceeds of any
  incurrence of indebtedness (other than permitted indebtedness) after the
  Closing Date by the Borrower or any of its subsidiaries;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)          100% of the net cash proceeds of any
  sale or other disposition (including as a result of casualty or condemnation)
  by the Borrower or any of its subsidiaries of any assets (except for the sale
  of inventory in the ordinary course of business and 

  

 

A-4

 

	
   

  	
   

  	
  certain other dispositions to be agreed upon) or the sale or issuance
  of equity in any subsidiary of the Borrower, subject to customary
  reinvestment provisions (including a 365 day reinvestment period); and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)          50% of excess cash flow (to be defined
  as consolidated EBITDA, less the sum of cash interest, cash taxes paid
  or payable, capital expenditures (except to the extent financed), scheduled
  payments of principal with respect to indebtedness, and voluntary prepayments
  of Term Loans and amounts (other than drawings under the Credit Facilities)
  used to repurchase the Notes, to the extent such amounts are not repaid with
  drawings under the Credit Facilities) plus or minus changes in working
  capital) for each fiscal year of the Borrower (commencing with the fiscal
  year after the fiscal year in which the Closing Date occurs) reducing to a
  percentage to be determined based upon the Borrower’s total leverage.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All such amounts shall
  be applied to the prepayment of the Senior Term Loans. Each such prepayment
  of the Senior Term Loans shall be applied to the installments thereof in
  inverse order of maturity and may not be reborrowed. No such mandatory
  prepayments shall be required once the Senior Term Loans shall have been paid
  in full. The Revolving Credit Loans shall be prepaid and the Revolving
  Facility Letters of Credit shall be cash collateralized or replaced to the
  extent such extensions of credit exceed the amount of the Revolving Credit
  Facility.

  
	
   

  	
   

  	
   

  
	
  IV.

  	
    Collateral

  	
  The obligations of each Credit Party in respect of
  the Credit Facilities and certain interest rate hedge agreements provided by
  affiliates of the Lenders will be secured by a perfected first priority
  security interest (subject to permitted liens) in all of its tangible and
  intangible assets (including, without limitation, intellectual property, real
  property, licenses, permits and all of the capital stock of each of the
  Borrower’s direct and indirect subsidiaries (but limited to 65% of the voting
  stock and 100% of the non-voting stock of certain of its first-tier foreign
  subsidiaries)), except for those assets as to which the Administrative Agent
  shall determine in its reasonable discretion that the costs of obtaining such
  a security interest are excessive in relation to the value of the security to
  be afforded thereby. To the extent that in the Administrative Agent’s
  reasonable discretion, it is not reasonably practicable to establish prior to
  the Closing Date a first priority perfected security interest in any real 

  

 

A-5

 

	
   

  	
   

  	
  property or stock of foreign
  subsidiaries owned by a Credit Party, the Credit Documentation (as herein
  defined) will provide that such security interests may be established within
  a reasonable time after the Closing Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Credit-Linked Deposit and the Credit-Linked
  Deposit Account will be pledged by each of the Lenders participating in the
  Letter of Credit Facility to the Administrative Agent to secure such Lender’s
  obligations with respect to the Letters of Credit issued under the Letter of
  Credit Facility.

  
	
   

  	
   

  	
   

  
	
  V.

  	
    Certain Conditions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Initial
  Conditions

  	
  The availability
  of the Credit Facilities is subject to the conditions set forth on
  Exhibit B to the Commitment Letter.

  
	
   

  	
   

  	
   

  
	
   

  	
  On-Going
  Conditions

  	
  The making of
  each extension of credit will be conditioned upon (i) the accuracy of
  all representations and warranties in the definitive financing documentation
  with respect to the Credit Facilities (the “Credit
  Documentation”) (including, without limitation, the Material
  Adverse Change and litigation representations) and (ii) there being no
  default or event of default in existence at the time of, or after giving
  effect to the making of, such extension of credit.

  
	
   

  	
   

  	
   

  
	
  VI.

  	
    Certain Documentation
  Matters

  	
  The Credit Documentation will contain
  representations, warranties, covenants and events of default deemed
  appropriate by the Arranger or consistent with those in the Existing Facility
  (provided, that such representations, warranties, covenants, conditions, and
  events of default shall take into account the Borrower’s ongoing restatement
  of its financial statements, pending litigation and investigations and losses
  on sales, in each case, to the extent publicly disclosed prior to the date of
  the Credit Agreement and the existence of the Specified Defaults, and
  specifically, the Borrower’s failure to complete the restatement or obtain
  audited financial statements shall not give rise to a default or event of
  default under the Credit Documentation unless the Borrower’s Form 10-K
  for the fiscal year ending December 31, 2006, is not timely filed),
  including, without limitation:

  
	
   

  	
   

  	
   

  
	
   

  	
  Representations
  and Warranties

  	
  Financial
  statements (including pro forma
  financial statements; provided that until the Borrower has cured the
  Specified Defaults, representations with respect to financial statements may
  be qualified to the same extent as such representations are qualified in the
  certification required on the Closing Date, as set forth in paragraph
  (d) 

  

 

A-6

 

	
   

  	
   

  	
  of
  Exhibit B to the Commitment Letter); no Material Adverse Change;
  corporate existence and qualification; compliance with law; corporate power
  and authority; enforceability of Credit Documentation; no conflict with law
  or contractual obligations; capitalization; no material litigation; no
  default; ownership of property; intellectual property; taxes; Federal Reserve
  regulations; ERISA and benefits; Investment Company Act; consents and
  approvals; subsidiaries; environmental matters; solvency; labor matters;
  accuracy of disclosure; creation and perfection of security interests; status
  of pledged collateral; use of proceeds; margin stock; Section 20
  subsidiary; insurance; material contracts; anti-terrorism laws; no burdensome
  restrictions expected to result in a Material Adverse Change; and not a
  regulated entity.

  
	
   

  	
   

  	
   

  
	
   

  	
  Affirmative
  Covenants

  	
  Delivery of
  financial statements, reports, accountants’ letters, projections, officers’
  certificates and other information requested by the Lenders; payment of other
  obligations; continuation of business and maintenance of existence and
  material rights and privileges; compliance with laws and material contractual
  obligations; maintenance of property, insurance and intellectual property;
  lien searches; maintenance of books and records; right of the Lenders and
  their accountants to inspect property and books and records; notices of
  defaults, litigation and other material events; compliance with environmental
  laws; plans and benefit arrangements; use of proceeds; tax shelter
  regulations; anti-terrorism laws; subordination; pledge of stock of foreign
  subsidiaries; further assurances (including, without limitation, with respect
  to security interests in after-acquired property) and agreement to maintain
  interest rate protection to ensure that at least 50% of the outstanding
  funded indebtedness of the Borrower accrues interest at a fixed rate for a
  period of not less than two years on terms and conditions reasonably
  satisfactory to the Administrative Agent.

  
	
   

  	
   

  	
   

  
	
   

  	
  Financial
  Covenants

  	
  Financial
  covenants consisting of minimum interest coverage ratio of at least 3.0 : 1.0
  and maximum total leverage ratio of not more than 3.5 : 1.0 until the period
  ending March 31, 2006; 3.0 : 1.0, for the period ending March 31,
  2006 until the period ending September, 30, 2006, and 2.75 : 1.0, for the
  period ending September 30, 2006 and thereafter.

  
	
   

  	
   

  	
   

  
	
   

  	
  Negative
  Covenants

  	
  Limitations on:
  indebtedness (including preferred stock); liens; guarantee obligations; loans
  and investments; mergers and acquisitions, consolidations, liquidations and
  dissolutions; sales of assets or subsidiaries; dividends, distributions and
  stock repurchases; capital expenditures 

  

 

A-7

 

	
   

  	
   

  	
  and capital
  leases; investments, loans and advances; optional payments and modifications
  to debt instruments; amendments to material contracts; subsidiaries,
  partnerships and joint ventures; transactions with affiliates; changes in
  fiscal year; plans and benefit arrangements; negative pledge clauses; and
  changes in lines of business or organizational documents.

  
	
   

  	
   

  	
   

  
	
   

  	
  Specified
  Defaults

  	
  The term
  “Specified Defaults” means (i) any default or event of default under the
  Notes occurring as a result of any default under the financial reporting or
  filing of SEC reports (or, to the extent arising therefrom, the compliance
  with laws) covenants thereof, (ii) any default or event of default under
  any other indebtedness to the extent the default or event of default is
  occurring as a result of failure to comply with financial reporting or SEC
  reporting covenants comparable to those in the Notes (or, to the extent
  arising therefrom, any comparable compliance with law covenant),
  (iii) any default or event of default under the “cross-default”
  provisions of the Notes, to the extent occurring as a result of a default
  described in clause (ii) or (iv) of this paragraph, and
  (iv) any default or event of default under the “cross-default”
  provisions of any indebtedness (other than the Notes) occurring as a result
  of a default or event of default described in clause (i), (ii) or
  (iii) of this paragraph. Notwithstanding the foregoing, if any financial
  information that is or was required to be filed (or would be required to be
  filed if the Borrower had a class of securities registered under the Securities
  Exchange Act of 1934 (the “Exchange Act”)
  by the Report Date (as defined herein) has not been so filed, any default or
  event of default arising therefrom (including any default or event of default
  set forth in clauses (i) and (ii) above) shall not be a Specified
  Default. As used herein, “Report Date”
  means the date on which the Borrower’s form 10-K for the fiscal year ending
  December 31, 2006 is or would be required to be filed if the Borrower
  had a class of securities registered under the Exchange Act.

  
	
   

  	
   

  	
   

  
	
   

  	
  Events
  of Default

  	
  Nonpayment of
  principal when due; nonpayment of interest, fees or other amounts after a
  grace period to be agreed upon; material inaccuracy of representations and
  warranties; violation of covenants (subject, in the case of certain affirmative
  covenants, to a grace period to be agreed upon); cross-default (other than as
  a result of Specified Defaults so long as the Borrower repays any accelerated
  amounts within the later of 10 business days after the Closing Date or 10
  business days of such acceleration); bankruptcy events; insolvency; loan
  documents unenforceable; notice of lien or assessment; certain ERISA events;
  material judgments; actual or 

  

 

A-8

 

	
   

  	
   

  	
  asserted invalidity of any guarantee or
  security document or security interest; cessation of business; and a change
  of control (the definition of which is to be agreed).

  
	
   

  	
   

  	
   

  
	
   

  	
  Voting

  	
  Amendments and
  waivers with respect to the Credit Documentation will require the approval of
  Lenders holding not less than a majority of the aggregate amount of the
  Senior Term Loans, Revolving Credit Loans including participations in Letters
  of Credit and Swing Line Loans and unused commitments under the Credit
  Facilities, except that (i) the consent of each Lender directly and
  adversely affected thereby shall be required with respect to
  (a) reductions in the amount or extensions of the scheduled date of
  amortization or final maturity of any Loan, (b) reductions in the rate
  of interest or any fee or extensions of any due date thereof,
  (c) increases in the amount or extensions of the expiry date of any
  Lender’s commitment, (d) modifications to the pro rata provisions of the
  Credit Documentation or (e) modifications to the assignment provisions
  of the Credit Documentation which further restrict assignments thereunder and
  (ii) the consent of 100% of the Lenders shall be required with respect
  to (a) modifications to any of the voting percentages and
  (b) releases of all or substantially all of the Guarantors or all or substantially
  all of the collateral.

  
	
   

  	
   

  	
   

  
	
   

  	
  Assignments
  and Participations

  	
  The Lenders
  shall be permitted to assign and sell participations in their loans and
  commitments, subject, in the case of assignments (other than assignments
  (i) by the Administrative Agent and its affiliates, (ii) to another
  Lender or to an affiliate of a Lender or (iii) of funded Senior Term
  Loans), to the consent of the Syndication Agent, the Administrative Agent,
  the Issuing Lender, the Swing Line Lender and so long as no Default or Event
  of Default has occurred and is continuing, the Borrower (which consent in
  each case shall not be unreasonably withheld). Non-pro rata assignments shall
  be permitted. In the case of partial assignments (other than to another
  Lender or to an affiliate of a Lender), the minimum assignment amount shall
  be $1,000,000 with respect to the Senior Term Facility and the Letter of
  Credit Facility and $5,000,000 with respect to the Revolving Credit Facility
  unless otherwise agreed by the Borrower, and the Administrative Agent.
  Participants shall have the same benefits as the Lenders with respect to
  yield protection and increased cost provisions. Voting rights of participants
  shall be limited to those matters with respect to which the affirmative vote
  of the Lender from which it purchased its participation would be required as
  described under “Voting” above. Pledges of Loans in accordance with
  applicable law shall be permitted without restriction. Promissory notes shall
  be issued 

  

 

A-9

 

	
   

  	
   

  	
  under the Credit Facilities only upon
  request. No assignment or participation may be made in violation of
  applicable state and federal securities laws.

  
	
   

  	
   

  	
   

  
	
   

  	
  Yield
  Protection

  	
  The Credit
  Documentation will contain customary provisions (i) protecting the
  Lenders against increased costs or loss of yield resulting from changes in
  reserve, tax, capital adequacy and other requirements of law and from the
  imposition of or changes in withholding or other taxes and
  (ii) indemnifying the Lenders for “breakage costs” incurred in
  connection with, among other things, any prepayment of a Eurodollar Loan (as
  defined in Annex A-I) on a day other than the last day of an interest period
  with respect thereto.

  
	
   

  	
   

  	
   

  
	
   

  	
  Expenses
  and Indemnification

  	
  The Borrower
  will pay (i) all reasonable out-of-pocket expenses of the Administrative
  Agent, the Syndication Agent and the Arranger associated with the syndication
  of the Credit Facilities and the preparation, negotiation, execution,
  delivery and administration of the Credit Documentation and any amendment or
  waiver with respect thereto (including the reasonable fees, disbursements and
  other charges of counsel and the charges of IntraLinks) and (ii) all
  out-of-pocket expenses of the Administrative Agent and the Lenders (including
  the fees, disbursements and other charges of counsel) in connection with the
  enforcement of the Credit Documentation or in any bankruptcy case or
  insolvency proceeding.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Administrative
  Agent, the Syndication Agent, the Arranger and the Lenders (and their
  affiliates and their respective officers, directors, employees, advisors and
  agents) will have no liability for, and will be indemnified and held harmless
  against, any loss, liability, cost or expense incurred in respect of the
  financing contemplated hereby or the use or the proposed use of proceeds
  thereof (except to the extent resulting from the gross negligence or willful
  misconduct of the indemnified party).

  
	
   

  	
   

  	
   

  
	
   

  	
  Governing
  Law and Forum

  	
  State of New
  York.

  
	
   

  	
   

  	
   

  
	
   

  	
  Counsel
  to the Administrative Agent the Syndication Agent and the Arranger

  	
  Latham &
  Watkins LLP.

  

 

A-10

 

Annex A-I

 

Interest and Certain Fees

 

	
  Interest
  Rate Options

  	
   

  	
  The Borrower may
  elect that the Loans comprising each borrowing bear interest at a rate per annum equal to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) the Base Rate
  plus the Applicable Margin; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) the
  Eurodollar Rate plus the Applicable Margin

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  provided, that all Swing Line Loans shall bear
  interest based upon the Base Rate.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  As used herein:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Base
  Rate” means
  the higher of (i) the prime lending rate as set forth on the British
  Banking Association Telerate Page 5 (the “Prime
  Rate”), and (ii) the federal funds effective rate from
  time to time plus 0.50%.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Applicable
  Margin”
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                  With respect to the Senior Term Loans 2.00%, in the
  case of Base Rate Loans (as defined below) and 3.00% in the case of
  Eurodollar Loans (as defined below); and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                  With respect to Revolving Loans 1.75%, in the case
  of Base Rate Loans and 2.75% in the case of Eurodollar Loans;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                  With respect to all Loans after the Credit
  Facilities have been rated by Moody’s and S&P, as set forth on Annex
  A-II.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  provided that, in each case, the Applicable
  Margin will (i) increase by 0.50% on December 31, 2005 and
  June 30, 2006, in each case, if by that date the Borrower has not
  provided audited and unaudited financial statements satisfactory to the
  Arranger in such form and for such periods as would be required to complete a
  public offering of debt securities and (ii) increase by 0.25% on the
  date more than $275.0 million of the Senior Term Loans are outstanding.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Eurodollar
  Rate” means
  the rate (adjusted for statutory reserve requirements for eurocurrency
  liabilities) at which eurodollar deposits for one, two, three or six months
  (as selected by the Borrower) are offered in the interbank eurodollar market.

  
	
   

  	
   

  	
   

  
	
  Interest
  Payment Dates

  	
   

  	
  In the case of
  Loans bearing interest based upon the Base Rate (“Base
  Rate Loans”), quarterly in arrears.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In the case of Loans
  bearing interest based upon the Eurodollar Rate (“Eurodollar
  Loans”), on the last day of 

  

 

A-I-1

 

	
   

  	
   

  	
  each relevant interest
  period and, in the case of any interest period longer than three months, on
  each successive date three months after the first day of such interest
  period.

  
	
   

  	
   

  	
   

  
	
  Unused
  Fees

  	
   

  	
  The Borrower
  shall pay an unused fee calculated at the rate of 1/2 of 1% per annum, on the average daily unused portion of the
  Revolving Credit Facility, payable quarterly in arrears. The Borrower shall
  pay an unused fee calculated at the rate of 1.00% per annum,
  on the average daily unused portion of the Term Facility, payable quarterly
  in arrears (it being understood that such unused fee is in lieu of, and not
  in addition to, the ticking fee set forth in the Fee Letter). Swing Line
  Loans shall, for purposes of the unused fee calculations only, not be deemed
  to be a utilization of the Revolving Credit Facility.

  
	
   

  	
   

  	
   

  
	
  Letter
  of Credit Fees

  	
   

  	
  The Borrower
  shall pay a commission on each outstanding Revolving Facility Letter of
  Credit at a per annum rate equal to the
  Applicable Margin then in effect with respect to Revolving Credit Loans that
  are Eurodollar Loans on the face amount of such Revolving Facility Letter of
  Credit. Such commission shall be shared ratably among the Lenders
  participating in the Revolving Credit Facility and shall be payable quarterly
  in arrears.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In addition to
  receiving their pro rata share of any interest earned on the Credit-Linked
  Deposits, Lenders under the Letter of Credit Facility will receive a per
  annum fee from the Borrower such that the aggregate amount of fees received
  pursuant to this paragraph by the Lenders participating in the Letter of Credit
  Facility, including the interest earned on the Credit-Linked Deposits, is an
  amount equal to the one month Eurodollar Rate plus the Applicable Margin for
  Eurodollar Loans under the Senior Term Loan Facility on the amount of the
  Credit-Linked Deposit.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Lenders under the
  Letter of Credit Facility will also receive an amount equal to the one-month
  Eurodollar Rate plus the Applicable Margin for Eurodollar Loans under the
  Senior Term Loan Facility on any unreimbursed drawings under the Letter of
  Credit Facility.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A fronting fee
  calculated at a rate per annum to
  be agreed upon by the Borrower and the Issuing Bank on the face amount of all
  Letters of Credit shall be payable quarterly in arrears to the Issuing Lender
  for its own account. In addition, customary administrative, issuance,
  amendment, 

  

 

A-I-2

 

	
   

  	
   

  	
  payment and negotiation charges shall be
  payable to the Issuing Lender for its own account.

  
	
   

  	
   

  	
   

  
	
  Default
  Rate

  	
   

  	
  At any time when
  the Borrower is in default in the payment of any amount of principal due
  under the Credit Facilities, such amount shall bear interest at 2% per annum
  above the rate otherwise applicable thereto. Overdue interest, fees and other
  amounts shall bear interest at 2% per annum above the rate applicable to Base
  Rate Loans.

  
	
   

  	
   

  	
   

  
	
  Rate
  and Fee Basis

  	
   

  	
  All per annum rates shall be calculated on the basis of a year
  of 360 days (or 365 days (or 366 days, as the case may be), in the case of
  Base Rate Loans the interest rate payable on which is then based on the Prime
  Rate) and the actual number of days elapsed.

  
	
   

  	
   

  	
   

  

 

A-I-3

 

Annex
A-II

 

Pricing Grid

 

	
  Rating for Credit Facilities (in

  each case, with a stable or

  positive outlook)

  	
   

  	
  Applicable Margin

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Revolving Credit Loans

  	
   

  	
  Senior Term Loans

  	
   

  
	
  Moody’s

  	
   

  	
   

  	
   

  	
  S&P

  	
   

  	
  Base Rate

  Loans

  	
   

  	
  Eurodollar

  Loans

  	
   

  	
  Base Rate

  Loans

  	
   

  	
  Eurodollar

  Loans

  	
   

  
	
  Ba3 or
  higher

  	
   

  	
  and

  	
   

  	
  BB- or
  higher

  	
   

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ba3 B1

  	
   

  	
  and -or- and

  	
   

  	
  B+ BB-

  	
   

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  	
  1.50

  	
  %

  	
  2.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B1 or
  lower

  	
   

  	
  and

  	
   

  	
  B+ or
  lower

  	
   

  	
  1.50

  	
  %

  	
  2.50

  	
  %

  	
  1.75

  	
  %

  	
  2.75

  	
  %

  

 

A-II-1

 

EXHIBIT B TO
COMMITMENT LETTER

 

FUNDING CONDITIONS

 

Capitalized terms used but not
defined herein have the meanings assigned to them in the Commitment Letter to
which this Exhibit B is attached and of which it forms a part.  The availability of the Credit Facilities is
conditioned upon satisfaction of, among other things, the conditions precedent
summarized below and in the Commitment Letter.

 

(a)                                  Each Credit Party shall have executed and
delivered definitive financing documentation with respect to the Credit
Facilities consistent with the terms of this Commitment Letter, satisfactory to
LCPI, the Arranger and their counsel.

 

(b)                                 The Company shall have complied with all
of its material obligations under and agreements in the Commitment Letter and
the Fee Letter.

 

(c)                                  All governmental, regulatory and third
party approvals necessary or, in the discretion of the Administrative Agent,
advisable in connection with the Refinancing, the financing contemplated hereby
and the continuing operations of the Company and its subsidiaries shall have
been obtained and be in full force and effect, and all applicable waiting
periods shall have expired without any action being taken or threatened by any
competent authority that could reasonably be expected to restrain, prevent or
otherwise impose adverse conditions on the financing thereof.

 

(d)                                 The Lenders shall have received the
Company’s internal, unaudited consolidated balance sheets, income statements,
results of operations and statements of cash flows, as of and for the fiscal
years ended December 31, 2003 and December 31, 2004 and the fiscal
quarter ended March 31, 2005 and each subsequent quarter ended more than
45 days prior to the Closing Date, certified by the Chief Financial Officer of
the Company as fairly presenting in all material respects, the financial
condition and results of operations of the Company as at such dates and for the
periods then ended, subject to any write downs, write offs, charges and
adjustments required as a result of the Restatements (as such term is defined,
as of the date hereof, in the Existing Facility).  Such financial statements as of March 31,
2005 and as of each fiscal quarter thereafter prior to the Closing Date shall
show adjusted consolidated EBITDA of the Company (calculated in a manner which
is consistent with that used to demonstrate compliance with the Consolidated
Total Leverage Ratio (as defined in the Existing Facility) to the lenders in
the Existing Facility prior to the date hereof and including such additional
adjustments with respect to subsequent periods as the Administrative Agent
reasonably agrees are appropriate) for the twelve-month period ended on March 31,
2005 and on the last day of each subsequent fiscal quarter for which financial
statements are available of not less than $175.0 million.

 

(e)                                  The Administrative Agent shall have
received the results of a recent lien and litigation search in each relevant
jurisdiction with respect to the Company and its subsidiaries, and such search
shall reveal no liens on any of the assets of the Company or its subsidiaries
except for liens permitted by the Credit Documentation or liens to be
discharged on or prior to the Closing Date pursuant to documentation
satisfactory to the Administrative Agent.

 

(f)                                    The Administrative Agent shall have
received a copy of the appraisals identified on Annex B-1 hereto and a review
of such appraisals shall demonstrate, to the reasonable satisfaction of the
Administrative Agent, that the current fair market value of such assets, for
financial reporting purposes, is not less than $570.0 million.

 

B-I-1

 

(g)                                 The Arranger shall have received
all documentation and other information required by bank regulatory authorities
under applicable “know your customer” and anti-money laundering rules and
regulations, including the USA Patriot Act.

 

(h)                                 The Arranger shall reasonably be
satisfied that the Company has complied with other customary closing conditions
reasonably satisfactory to them, including, (i) accuracy of the
representations and warranties in the documentation for the Credit Facilities; (ii) absence
of any default or event of default under the documentation for the Credit
Facilities or any other material agreements (other than the Specified
Defaults); (iii) satisfactory confirmation of repayment of the Existing
Facility (out of the proceeds of the initial advance under the Credit
Facilities); (iv) evidence of authority; (v) no violation of laws,
statutes, rules or regulations; (vi) absence of litigation affecting
the Refinancing; (vii) approval by the Arranger of all agreements with
affiliates; (viii) perfection of liens securing the Credit Facilities and
absence of other liens except liens permitted under the documentation for the
Credit Facilities and the Notes; (ix) satisfactory insurance, certificates
of insurance, and loss payee endorsements and (x) delivery of reasonably satisfactory
legal opinions and a customary solvency certificate from the chief financial
officer of the Company with respect to the Company itself and the Company and the
other Credit Parties, on a consolidated basis.

 

B-I-2

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