Document:

CHASE CREDIT CARD OWNER TRUST 2001-2

                   Class A Floating Rate Asset Backed Notes
                   Class B Floating Rate Asset Backed Notes
                   Class C Floating Rate Asset Backed Notes

                                   INDENTURE

                           Dated as of June 14, 2001

                             THE BANK OF NEW YORK

       as Indenture Trustee, Securities Intermediary and Transfer Agent

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                               TABLE OF CONTENTS

                                                                           Page

                                   ARTICLE I

                  DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.1.  Definitions....................................................2
SECTION 1.2.  Incorporation by Reference of Trust Indenture Act.............15
SECTION 1.3.  Usage of Terms................................................16
SECTION 1.4.  Calculations of Interest......................................16

                                  ARTICLE II

                                   THE NOTES

SECTION 2.1.  Form..........................................................16
SECTION 2.2.  Execution, Authentication and Delivery........................17
SECTION 2.3.  Temporary Notes...............................................17
SECTION 2.4.  Registration of Transfer and Exchange.........................17
SECTION 2.5.  Mutilated, Destroyed, Lost or Stolen Notes....................19
SECTION 2.6.  Persons Deemed Owner..........................................20
SECTION 2.7.  Payment of Principal and Interest.............................20
SECTION 2.8.  Cancellation..................................................23
SECTION 2.9.  Release of Collateral.........................................23
SECTION 2.10. Book-Entry Notes..............................................23
SECTION 2.11. Notices to Clearing Agency....................................24
SECTION 2.12. Definitive Notes..............................................24
SECTION 2.13. Authenticating Agent..........................................25
SECTION 2.14. Appointment of Paying Agent...................................26
SECTION 2.15. CUSIP Numbers.................................................27
SECTION 2.16. Determination of LIBOR........................................27

                                  ARTICLE III

                                   COVENANTS

SECTION 3.1.  Payment of Principal and Interest.............................28
SECTION 3.2.  Maintenance of Office or Agency...............................28
SECTION 3.3.  Money for Payments To Be Held in Trust........................28
SECTION 3.4.  Existence.....................................................29
SECTION 3.5.  Protection of Owner Trust Estate..............................29
SECTION 3.6.  Opinions as to Owner Trust Estate.............................30
SECTION 3.7.  Performance of Obligations; Servicing of Series Certificate...30
SECTION 3.8.  Negative Covenants............................................31

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SECTION 3.9.  Annual Statement as to Compliance.............................32
SECTION 3.10. The Issuer May Consolidate, Etc. Only on Certain Terms........32
SECTION 3.11. Successor or Transferee.......................................34
SECTION 3.12. No Other Business.............................................34
SECTION 3.13. No Borrowing..................................................34
SECTION 3.14. Administrator's Obligations...................................34
SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities.............34
SECTION 3.16. Capital Expenditures..........................................35
SECTION 3.17. Restricted Payments...........................................35
SECTION 3.18. Notice of Events of Default...................................35
SECTION 3.19. Further Instruments and Acts..................................35
SECTION 3.20. Removal of Administrator......................................35

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

SECTION 4.1.  Satisfaction and Discharge of Indenture.......................35
SECTION 4.2.  Application of Trust Money....................................36
SECTION 4.3.  Repayment of Moneys Held by Paying Agent......................37
SECTION 4.4.  No Revocation or Termination of Issuer Without
                Noteholder Approval.........................................37

                                   ARTICLE V

                                   REMEDIES

SECTION 5.1.  Events of Default.............................................37
SECTION 5.2.  Acceleration of Maturity; Rescission and Annulment............38
SECTION 5.3.  Collection of Indebtedness and Suits for Enforcement
                by the Indenture Trustee....................................38
SECTION 5.4.  Remedies; Priorities..........................................40
SECTION 5.5.  Optional Preservation of the Owner Trust Estate...............41
SECTION 5.6.  Limitation of Suits...........................................41
SECTION 5.7.  Unconditional Rights of Noteholders To Receive
                Principal and Interest......................................42
SECTION 5.8.  Restoration of Rights and Remedies............................42
SECTION 5.9.  Rights and Remedies Cumulative................................43
SECTION 5.10. Delay or Omission Not a Waiver................................43
SECTION 5.11. Control by Noteholders........................................43
SECTION 5.12. Waiver of Past Defaults.......................................43
SECTION 5.13. Undertaking for Costs.........................................44
SECTION 5.14. Waiver of Stay or Extension Laws..............................44
SECTION 5.15. Action on Notes...............................................44
SECTION 5.16. Performance and Enforcement of Certain Obligations............44

                                      ii
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                                  ARTICLE VI

                             THE INDENTURE TRUSTEE

SECTION 6.1.  Duties of the Indenture Trustee...............................45
SECTION 6.2.  Rights of the Indenture Trustee...............................47
SECTION 6.3.  Individual Rights of the Indenture Trustee....................48
SECTION 6.4.  The Indenture Trustee's Disclaimer............................48
SECTION 6.5.  Notice of Defaults............................................49
SECTION 6.6.  Reports by the Indenture Trustee to Holders...................49
SECTION 6.7.  Compensation and Indemnity....................................49
SECTION 6.8.  Replacement of the Indenture Trustee..........................49
SECTION 6.9.  Successor Indenture Trustee by Merger.........................50
SECTION 6.10. Appointment of Co-Indenture Trustee or
                Separate Indenture Trustee..................................51
SECTION 6.11. Eligibility; Disqualification.................................52
SECTION 6.12. Preferential Collection of Claims Against the Issuer..........52

                                  ARTICLE VII

                        NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.1.  The Issuer To Furnish the Indenture Trustee Names and
                Addresses of the Noteholders................................53
SECTION 7.2.  Preservation of Information; Communications to the
                Noteholders.................................................53
SECTION 7.3.  Reports by the Administrator..................................53
SECTION 7.4.  Reports by the Issuer.........................................54
SECTION 7.5.  Reports by the Indenture Trustee..............................54

                                 ARTICLE VIII

                     ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.1.   Collection of Money..........................................55
SECTION 8.2.   Owner Trust Accounts.........................................56
SECTION 8.3.   Owner Trust Spread Account Amount Increase...................56
SECTION 8.4.   General Provisions Regarding Owner Trust Spread Account......57
SECTION 8.5.   Release of Owner Trust Estate................................57
SECTION 8.6.   Opinion of Counsel...........................................58
SECTION 8.7.   Treatment as Financial Assets................................58
SECTION 8.8.   Powers Coupled With an Interest..............................58

                                  ARTICLE IX

                            SUPPLEMENTAL INDENTURES

SECTION 9.1.   Supplemental Indentures Without Consent of Noteholders.......58
SECTION 9.2.   Supplemental Indentures with Consent of the Noteholders......60

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SECTION 9.3.   Effect of Supplemental Indenture.............................61
SECTION 9.4.   Conformity with Trust Indenture Act..........................61
SECTION 9.5.   Reference in Notes to Supplemental Indentures................61
SECTION 9.6.   Execution of Supplemental Indentures.........................62

                                   ARTICLE X

                              REDEMPTION OF NOTES

SECTION 10.1.  Redemption...................................................62
SECTION 10.2.  Form of Redemption Notice....................................62
SECTION 10.3.  Notes Payable on Redemption Date.............................63

                                  ARTICLE XI

                                 MISCELLANEOUS

SECTION 11.1.  Compliance Certificates and Opinions, etc....................63
SECTION 11.2.  Form of Documents Delivered to the Indenture Trustee.........65
SECTION 11.3.  Actions of Noteholders.......................................65
SECTION 11.4.  Notices, etc., to the Indenture Trustee, the Issuer,
                and Note Rating Agencies....................................66
SECTION 11.5.  Notices to Noteholders; Waiver...............................66
SECTION 11.6.  Alternate Payment and Notice Provisions......................67
SECTION 11.7.  Conflict with Trust Indenture Act............................67
SECTION 11.8.  Effect of Headings and Table of Contents.....................67
SECTION 11.9.  Successors and Assigns.......................................67
SECTION 11.10. Separability.................................................68
SECTION 11.11. Benefits of Indenture........................................68
SECTION 11.12. Legal Holidays...............................................68
SECTION 11.13. GOVERNING LAW................................................68
SECTION 11.14. Counterparts.................................................68
SECTION 11.15. Recording of Indenture.......................................68
SECTION 11.16. Trust Obligation.............................................68
SECTION 11.17. No Petition..................................................69
SECTION 11.18. Inspection...................................................69
SECTION 11.19. Tax Treatment................................................69

Exhibit A  -   Form of Class A Note
Exhibit B  -   Form of Class B Note
Exhibit C  -   Form of Class C Note
Exhibit D  -   Form of Note Depository Agreement

                                      iv
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                            CROSS REFERENCE TABLE1

     TIA Section                                        Indenture Section
     -----------                                        -----------------
         310(a)(1)                                      6.11
            (a)(2)                                      6.11

            (a)(3)                                      6.10
            (a)(4)                                      N.A.2
            (a)(5)                                      6.11
            (b)                                         6.8; 6.11
            (c)                                         N.A.
         311(a)                                         6.12
            (b)                                         6.12
            (c)                                         N.A.
         312(a)                                         7.1; 7.2
            (b)                                         7.2
            (c)                                         7.2
         313(a)                                         7.4
            (b)(1)                                      7.4
            (b)(2)                                      7.4
            (c)                                         7.4
            (d)                                         7.3
         314(a)                                         7.3
            (b)                                         3.6
            (c)(1)                                      11.1
            (c)(2)                                      11.1
                                                        11.1
                                                        11.1
            (f)                                         N.A.
         315(a)                                         6.1
            (b)                                         6.5; 11.5
            (c)                                         6.1
            (d)                                         6.1
            (e)                                         5.13
         316(a) (last                                   1.1
            sentence)
            (a)(1)(A)                                   5.11
            (a)(1)(B)                                   5.12

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

2   N.A. means Not Applicable.

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            (a)(2)                                      N.A.
            (b)                                         5.7
            (c)                                         N.A.
         317(a)(1)                                      5.3
            (a)(2)                                      5.3
            (b)                                         3.3
         318(a)                                         11.7

                                      vi
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          INDENTURE dated as of June 14, 2001, between WILMINGTON TRUST
COMPANY, not in its individual capacity but solely as Owner Trustee for the
Chase Credit Card Owner Trust 2001-2, a Delaware common law trust (the
"Issuer"), and THE BANK OF NEW YORK, a New York banking corporation, as
indenture trustee (the "Indenture Trustee"), securities intermediary and
transfer agent and not in its individual capacity.

          Each party agrees as follows for the benefit of the other party and
for the benefit of the Holders of the Issuer's Class A Floating Rate Asset
Backed Notes (the "Class A Notes"), Class B Floating Rate Asset Backed Notes
(the "Class B Notes") and Class C Floating Rate Asset Backed Notes (the "Class
C Notes", together with the Class A Notes and the Class B Notes, the "Notes"):

                                GRANTING CLAUSE

          The Issuer hereby Grants to the Indenture Trustee at the Closing
Date, as Indenture Trustee for the benefit of the Holders of the Notes, all
right, title and interest of the Issuer in, to and under the following
property whether now owned or hereafter acquired, now existing or hereafter
created and wherever located: all accounts, money, chattel paper, investment
property, instruments, documents, deposit accounts, certificates of deposit,
letters of credit, advices of credit, general intangibles and goods consisting
of, arising from or relating to (a) the Series Certificate, (b) all money,
instruments, investment property and other property (together with all
earnings, dividends, distributions, income, issues, and profits relating to),
distributed or distributable in respect of the Series Certificate pursuant to
the terms of the Series Supplement, the Pooling and Servicing Agreement or the
Deposit and Administration Agreement; (c) all money, investment property,
instruments and other property on deposit from time to time in, credited to or
related to the Note Distribution Account and the Owner Trust Spread Account,
and in all interest, dividends, earnings, income and other distributions from
time to time received, receivable or otherwise distributed to or in respect
thereto (including any accrued discount realized on liquidation of any
investment purchased at a discount); provided that the Grant in respect of the
Owner Trust Spread Account is for the exclusive benefit of the Class C
Noteholders; (d) all rights, remedies, powers, privileges and claims of the
Issuer under or with respect to the Series Certificate and the Deposit and
Administration Agreement (whether arising pursuant to the terms of the Deposit
and Administration Agreement or otherwise available to the Issuer at law or in
equity), including, without limitation, the rights of the Issuer to enforce
the Pooling and Servicing Agreement, the Series Supplement and the Deposit and
Administration Agreement, and to give or withhold any and all consents,
requests, notices, directions, approvals, extensions or waivers under or with
respect to the Pooling and Servicing Agreement, the Series Supplement or the
Deposit and Administration Agreement to the same extent as the Issuer could
but for the assignment and security interest granted to the Indenture Trustee
for the benefit of the Noteholders; (e) all other property of the Issuer; and
(f) 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, products, rents, receipts or profits of the
conversion, voluntary or involuntary, into cash or other property, all cash
and non-cash proceeds, and other property consisting of, arising from or
relating to all or any part of any of the foregoing or any proceeds thereof
(collectively, the "Collateral").
<PAGE>

          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 except
as set forth herein, and to secure compliance with the provisions of this
Indenture, all as provided in this Indenture.

          The Indenture Trustee, as trustee on behalf of the Holders of the
Notes, acknowledges such Grant, accepts the trusts under this Indenture in
accordance with the provisions of this Indenture and agrees to perform its
duties required in this Indenture to the end that the interests of the Holders
of the Notes and (only to the extent expressly provided herein) the
Certificateholder may be adequately and effectively protected.

          On the date of issuance of the Series Certificate, the Issuer shall
cause the Series Certificate with an undated bond power covering such Series
Certificate, duly executed by the Issuer, and endorsed in blank, to be
delivered to the Indenture Trustee, and the Indenture Trustee shall maintain
possession of the Series Certificate for the benefit of the Holders of the
Notes, subject to the terms of this Indenture.

                                  ARTICLE I

                  DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.1. Definitions. The following terms which are defined in
the Uniform Commercial Code in the State of New York shall have the meanings
set forth therein: "certificated security," "control," "financial asset,"
entitlement order," "investment property," "securities account," "securities
intermediary," and "security entitlement." Whenever used in this Indenture,
the following words and phrases, unless the context otherwise requires, shall
have the following meanings:

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

          "Administrator" means Chase Manhattan Bank USA, National
Association, as administrator pursuant to the Deposit and Administration
Agreement, and its successors and assigns.

          "Affiliate" means, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such
specified Person. For 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. A Person shall
not be deemed to be an Affiliate of any specified Person solely because such
other Person has the contractual right or obligation to manage such specified
Person unless such other Person controls such specified Person through equity
ownership or otherwise.

          "Authenticating Agent" has the meaning specified in Section 2.13 and
shall initially be the corporate trust office of Chase, and its successors and
assigns in such capacity.

          "Authorized Officer" means any officer of the Owner Trustee, the
Administrator or the Servicer, who is authorized to act on behalf of the Owner
Trustee, the Administrator or Issuer, or the Servicer, respectively, and who

                                      2
<PAGE>

is identified as such on the list of authorized officers delivered by each
such party on the Closing Date as such list may be modified by notice to the
other parties.

          "Available Amount" means, with respect to each Transfer Date, an
amount equal to the amount to be paid in respect of the Series Certificate
pursuant to Section 4.9 of the Pooling and Servicing Agreement on such date.

          "Basic Documents" means this Indenture, the Deposit and
Administration Agreement, the Trust Agreement, the Pooling and Servicing
Agreement and the Series Supplement and other documents and certificates
delivered in connection therewith.

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

          "Business Day" means a day, other than a Saturday or a Sunday, on
which the Indenture Trustee and banks located in New York, New York, and
Wilmington, Delaware are open for the purpose of conducting a commercial
banking business.

          "Certificate" means the certificate evidencing the beneficial
interest in Chase Credit Card Owner Trust 2001-2, substantially in the form
attached to the Trust Agreement as Exhibit A.

          "Certificateholder" means Chase USA.

          "Certificate Reassignment Date" has the meaning specified in the
Series Supplement.

          "Chase" means The Chase Manhattan Bank, a New York banking
corporation.

          "Chase USA" means Chase Manhattan Bank USA, National Association.

          "Class A Monthly Note Interest" means, with respect to any Payment
Date, an amount equal to the product of (a) the Class A Note Interest Rate for
the related Note Interest Period, (b) a fraction, the numerator of which is
the actual number of days in such Note Interest Period and the denominator of
which is 360 and (c) the Class A Note Principal Balance on the related Record
Date; provided, however, that with respect to the July 2001 Payment Date,
Class A Monthly Note Interest will be an amount equal to the product of (a)
the Class A Note Interest Rate determined on June 12, 2001, (b) a fraction the
numerator of which is 32 and the denominator of which is 360 and (c) the Class
A Note Initial Principal Balance.

          "Class A Noteholder" means a Holder of a Class A Note.

          "Class A Noteholders" Principal Distributable Amount" means, with
respect to any Payment Date on and after the earlier to occur of (a) the Class
A Scheduled Payment Date and (b) any Note Principal Due Date, the Class A Note
Principal Balance on such Payment Date.

                                      3
<PAGE>

          "Class A Note Initial Principal Balance" means $500,000,000.

          "Class A Note Interest Rate" means, from the Closing Date through
July 15, 2001 and, with respect to each Note Interest Period, a per annum rate
equal to 0.12% per annum in excess of LIBOR, as determined on the related
LIBOR Determination Date.

          "Class A Note Interest Requirement" means, with respect to any
Payment Date, the sum of (a) the Class A Monthly Note Interest for such
Payment Date and (b) the amount of any unpaid Class A Note Interest Shortfall.

          "Class A Note Interest Shortfall" means, with respect to any Payment
Date, the sum of (a) the excess, if any, of (i) the Class A Note Interest
Requirement for the preceding Payment Date, over (ii) the amount in respect of
interest that was actually paid pursuant to subsection 2.4(d) with respect to
interest on the Class A Notes for such preceding Payment Date, plus (b)
interest on the amount of interest due but not paid to the Class A Noteholders
on the preceding Payment Date, to the extent permitted by law, at the Class A
Note Interest Rate from and including such preceding Payment Date to but
excluding the current Payment Date.

          "Class A Note Principal Balance" means, with respect to any date, an
amount equal to the excess of (a) the Class A Note Initial Principal Balance
over (b) the aggregate amount of any principal payments made to the Class A
Noteholders pursuant to subsection 2.7(d) prior to such date.

          "Class A Notes" means each of the $500,000,000 Class A Floating Rate
Asset Backed Notes, Series 2001-2.

          "Class A Scheduled Payment Date" means the May 2006 Payment Date.

          "Class B Monthly Note Interest" means, with respect to any Payment
Date, an amount equal to the product of (a) the Class B Note Interest Rate for
the related Note Interest Period, (b) a fraction, the numerator of which is
the actual number of days in such Note Interest Period and the denominator of
which is 360 and (c) the Class B Note Principal Balance on the related Record
Date; provided, however, that with respect to the July 2001 Payment Date,
Class B Monthly Note Interest will be an amount equal to the product of (a)
the Class B Note Interest Rate determined on June 12, 2001, (b) a fraction the
numerator of which is 32 and the denominator of which is 360 and (c) the Class
B Note Initial Principal Balance.

          "Class B Noteholder" means a Holder of a Class B Note.

          "Class B Noteholders' Principal Distributable Amount" means, with
respect to any Payment Date on and after the earlier to occur of (a) the Class
B Scheduled Payment Date and (b) any Note Principal Due Date, the Class B Note
Principal Balance on such Payment Date.

          "Class B Note Initial Principal Balance" means $41,666,000.

          "Class B Note Interest Rate" means, from the Closing Date through
July 15, 2001, and, with respect to each Note Interest Period, a per annum
rate equal to 0.36% per annum in excess of LIBOR, as determined on the related
LIBOR Determination Date.

                                      4
<PAGE>

          "Class B Note Interest Requirement" means, with respect to any
Payment Date, the sum of (a) the Class B Monthly Note Interest for such
Payment Date and (b) the amount of any unpaid Class B Note Interest Shortfall.

          "Class B Note Interest Shortfall" means, with respect to any Payment
Date, the sum of (a) the excess, if any, of (i) the Class B Note Interest
Requirement for the preceding Payment Date, over (ii) the amount in respect of
interest that was actually paid pursuant to subsection 2.7(e) with respect to
interest on the Class B Notes for such preceding Payment Date, plus (b)
interest on the amount of interest due but not paid to the Class B Noteholders
on the preceding Payment Date, to the extent permitted by law, at the Class B
Note Interest Rate from and including such preceding Payment Date to but
excluding the current Payment Date.

          "Class B Note Principal Balance" means, with respect to any date, an
amount equal to the excess of (a) the Class B Note Initial Principal Balance
over (b) the aggregate amount of any principal payments made to the Class B
Noteholders pursuant to subsection 2.7(e) prior to such date.

          "Class B Notes" means each of the $41,666,000 Class B Floating Rate
Asset Backed Notes, Series 2001-2.

          "Class B Scheduled Payment Date" means the June 2006 Payment Date.

          "Class C Monthly Note Interest" means, with respect to any Payment
Date, an amount equal to the product of (a) the Class C Note Interest Rate for
the related Note Interest Period, (b) a fraction, the numerator of which is
the actual number of days in such Note Interest Period and the denominator of
which is 360 and (c) the Class C Note Principal Balance on the related Record
Date; provided, however, that with respect to the July 2001 Payment Date,
Class C Monthly Note Interest will be an amount equal to the product of (a)
the Class C Note Interest Rate determined on June 12, 2001, (b) a fraction the
numerator of which is 32 and the denominator of which is 360 and (c) the Class
C Note Initial Principal Balance.

          "Class C Noteholder" means a Holder of a Class C Note.

          "Class C Noteholders' Principal Distributable Amount" means, with
respect to any Payment Date on and after the earlier to occur of (a) the Class
C Scheduled Payment Date and (b) any Note Principal Due Date, the Class C Note
Principal Balance on such Payment Date.

          "Class C Note Initial Principal Balance" means $53,572,000.

          "Class C Note Interest Rate" means, from the Closing Date through
July 15, 2001, and, with respect to each Note Interest Period, a per annum
rate equal to 0.90% per annum in excess of LIBOR, as determined on the related
LIBOR Determination Date.

          "Class C Note Interest Requirement" means, with respect to any
Payment Date, the sum of (a) the Class C Monthly Note Interest for such
Payment Date and (b) the amount of any unpaid Class C Note Interest Shortfall.

                                      5
<PAGE>

          "Class C Note Interest Shortfall" means, with respect to any Payment
Date, the sum of (a) the excess, if any, of (i) the Class C Note Interest
Requirement for the preceding Payment Date, over (ii) the amount in respect of
interest that was actually paid pursuant to subsection 2.7(f) with respect to
interest on the Class C Notes for such preceding Payment Date, plus (b)
interest on the amount of interest due but not paid to the Class C Noteholders
on the preceding Payment Date, to the extent permitted by law, at the Class C
Note Interest Rate from and including such preceding Payment Date to but
excluding the current Payment Date.

          "Class C Note Principal Balance" means, with respect to any date, an
amount equal to the excess of (a) the Class C Note Initial Principal Balance
over (b) the aggregate amount of any principal payments made to the Class C
Noteholders pursuant to subsection 2.7(f) prior to such date.

          "Class C Notes" means each of the $53,572,000 Class C Floating Rate
Asset Backed Notes, Series 2001-2.

          "Class C Scheduled Payment Date" means the June 2006 Payment Date.

          "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act; the initial Clearing
Agency shall be The Depository Trust Company.

          "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 of securities deposited with the Clearing
Agency (including a Foreign Clearing Agency).

          "Clearstream" means Clearstream Banking, societe anonyme, and its
successors.

          "Closing Date" means June 14, 2001.

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Collateral" has the meaning assigned to such term in the Granting
Clause hereof.

          "Commission" means the Securities and Exchange Commission.

          "Corporate Trust Office" means the principal corporate trust office
of the Indenture Trustee, which as of the date hereof, is located at 101
Barclay Street, Fl. 12 East, New York, New York 10286, Attn: Corporate Trust
Administration or the corporate trust office of the Owner Trustee, as
applicable.

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

          "Definitive Notes" means Notes issued in certificated, fully
registered form as provided in Section 2.12.

                                      6
<PAGE>

          "Deposit and Administration Agreement" means the deposit and
administration agreement dated as of June 14, 2001 between the Depositor and
Administrator and Wilmington Trust Company, not in its individual capacity but
solely as Owner Trustee for the Chase Credit Card Owner Trust 2001-2.

          "Depositor" means Chase USA in its capacity as Depositor under the
Trust Agreement.

          "Distribution Date" has the meaning specified in the Series
Supplement.

          "DTC" means The Depository Trust Company.

          "Eligible Deposit Account" means either (a) a segregated account
with an Eligible Institution or (b) a segregated trust account with the
corporate trust department of a depository institution organized under the
laws of the United States or any one of the states thereof, including the
District of Columbia (or any domestic branch of a foreign bank), and acting as
a trustee for funds deposited in such accounts, so long as any of the senior
unsecured debt obligations of such depository institution shall have a credit
rating from each Note Rating Agency in one of its generic credit rating
categories which signifies investment grade.

          "Eligible Institution" means (a) the Administrator or (b) a
depository institution (which may be the Owner Trust Trustee, the Indenture
Trustee or the Master Trust Trustee or an Affiliate) organized under the laws
of the United States or any one of the states thereof which at all times (i)
has a certificate of deposit rating of "P-1" by Moody's, (ii) has either (x) a
long-term unsecured debt rating of "AAA" by Standard & Poor's or (y) a
certificate of deposit rating of "A-1+" by Standard & Poor's and (iii) is a
member of the FDIC.

          "Euroclear Operator" means Euroclear Bank, S.A./N.V., as operator of
the Euroclear System.

          "Event of Default" means an event specified in Section 5.1.

          "Excess Spread Percentage" shall mean, with respect to any Monthly
Period, the amount, if any, by which (i) the Portfolio Yield exceeds (ii) the
Base Rate.

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

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

          "FDIC" means the Federal Deposit Insurance Corporation or any
successor thereto.

          "Fitch" means Fitch, Inc. and its successors and assigns. -----

                                      7
<PAGE>

          "Foreign Clearing Agency" means, collectively, Clearstream and the
Euroclear Operator.

          "Grant" means mortgage, pledge, bargain, sell, warrant, alienate,
remise, release, convey, assign, transfer, create, and grant a lien upon and a
security interest in and right of set-off against, deposit, set over and
confirm pursuant to this Indenture. A Grant of the Trust Estate or of any
other agreement or instrument shall include all rights, powers and options
(but none of the obligations) of the Granting party thereunder, including the
immediate and continuing right to claim for, collect, receive and give receipt
for principal and interest payments 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 "Holders" means, unless the context otherwise requires,
both the Certificateholder and Noteholders.

          "Indenture Trustee" means The Bank of New York, in its capacity as
indenture trustee pursuant to 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 Depositor 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
Depositor or any Affiliate of any of the foregoing Persons and (c) is not
connected with the Issuer, any such other obligor, the Depositor or any
Affiliate of any of the foregoing Persons as an officer, employee, promoter,
underwriter, trustee, partner, director or Person performing similar
functions.

          "Independent Certificate" means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1, made by
an Independent engineer, appraiser or other expert appointed by the Issuer and
approved by the Indenture Trustee in the exercise of reasonable care, and such
opinion or certificate shall state that the signer has read the definition of
"Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

          "Insolvency Event" means, for a specified Person, (a) the filing of
a decree or order for relief by a court having jurisdiction in the premises in
respect of such Person or any substantial part of its property 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
(including any receiver appointed under the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, as amended), liquidator, assignee,
custodian, trustee, sequestrator or similar official for such Person or for
any substantial part of its property, or ordering the winding-up or
liquidation of such Person's affairs, and such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days; or (b) the
commencement by such Person 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 such Person to the entry of an order for relief in

                                      8
<PAGE>

an involuntary case under any such law, or the consent by such Person to the
appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official for such Person or for
any substantial part of its property, or the making of such Person of any
general assignment for the benefit of creditors, or the failure by such Person
generally to pay its debts as such debts become due, or the taking of action
by such Person in furtherance of any of the foregoing.

          "Investment Earnings" means, with respect to any Payment Date, the
investment earnings (net of losses and investment expenses) on amounts on
deposit in the Owner Trust Spread Account.

          "Issuer" means Chase Credit Card Owner Trust 2001-2, a Delaware
common law trust created under the Trust Agreement acting by and through
Wilmington Trust Company, not in its individual capacity but solely as Owner
Trustee.

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

          "LIBOR" means, for any Note Interest Period, the London interbank
offered rate for United States dollar deposits determined by the Indenture
Trustee for each Note Interest Period in accordance with the provisions of
Section 2.16.

          "LIBOR Determination Date" shall mean June 12, 2001 for the period
from the Closing Date through July 15, 2001 and (b) the second London Business
Day prior to the commencement of the second and each subsequent Note Interest
Period.

          "Lien" means a security interest, lien, charge, pledge or
encumbrance of any kind other than tax liens, mechanics' liens or any other
liens that attach by operation of law.

          "London Business Day" means any Business Day on which dealings in
deposits in United States dollars are transacted in the London interbank
market.

          "Master Trust" means the Chase Credit Card Master Trust created
pursuant to the Pooling and Servicing Agreement.

          "Master Trust Servicer Default" means a Servicer Default as defined
in the Pooling and Servicing Agreement.

          "Master Trust Termination Date" means the Series 2001-2 Termination
Date, as defined in the Series Supplement.

          "Master Trust Trustee" means The Bank of New York, as trustee under
the Pooling and Servicing Agreement and each successor to The Bank of New York
in the same capacity.

          "Monthly Period" has the meaning specified in the Series Supplement.

                                      9
<PAGE>

          "Moody's" means Moody's Investors Service, Inc., and its successors
and assigns.

          "Net Class C Note Interest Requirement" means, with respect to any
Payment Date, an amount equal to the Class C Note Interest Requirement minus
the amount of investment earnings on amounts on deposit in the Owner Trust
Spread Account pursuant to Section 8.2 which are available on such Transfer
Date to be applied pursuant to subsection 2.7(b).

          "Note" means a Class A Note, a Class B Note, or a Class C Note.

          "Note Depository Agreement" means the Note Depository Agreement
substantially in the form of Exhibit D attached hereto.

          "Note Distribution Account" means the account designated as such,
established and maintained pursuant to Section 8.2.

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

          "Note Initial Principal Balance" means $595,238,000.

          "Note Interest Period" means, with respect to any Payment Date, the
period from the previous Payment Date through the day preceding such Payment
Date, except that the initial Note Interest Period will be the period from the
Closing Date through the day preceding the initial Payment Date.

          "Note Interest Rate" means each of the Class A Note Interest Rate,
Class B Note Interest Rate and Class C Note Interest Rate.

          "Note Interest Shortfall" means, with respect to any Payment Date,
the amount of any of the Class A Note Interest Shortfall, the Class B Note
Interest Shortfall or the Class C Note Interest Shortfall.

          "Note Maturity Date" means the September 2008 Payment Date.

          "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 Foreign Clearing Agency, or on the books of a direct or
indirect Clearing Agency Participant.

          "Note Principal Due Date" means any of (a) the Master Trust
Termination Date, (b) the date on which the Investor Interest is paid in full,
(c) the Note Maturity Date, (d) the Certificate Reassignment Date and (e) the
Payment Date in the month following the Monthly Period in which a Pay Out
Event (including an Event of Default) occurs.

          "Note Rate" means any of the Class A Note Interest Rate, Class B
Note Interest Rate and Class C Note Interest Rate.

                                      10
<PAGE>

          "Note Rating Agency" means any nationally recognized rating
organization selected by Chase USA to rate the Notes.

          "Note Register" and "Note Registrar" means the register maintained
and the registrar appointed pursuant to Section 2.4.

          "Note Registrar" shall have the meaning specified in the definition
of "Note Register".

          "Officer's Certificate" means a certificate signed by the chairman
of the board, the president, the treasurer, the controller, any executive or
senior vice president or any vice president of the Depositor, the
Administrator (on behalf of itself or the Issuer), or the Servicer, as
appropriate, meeting the requirements of Section 11.1.

          "Opinion of Counsel" means a written opinion of counsel (who may be
counsel to the Depositor, the Administrator or the Servicer) reasonably
acceptable in form and substance to the Indenture Trustee, meeting the
requirements of Section 11.1 (or in the case of an Opinion of Counsel
delivered to the Owner Trustee, reasonably acceptable in form and substance to
the Owner Trustee).

          "Outstanding" means, when used with respect to Notes, as of any date
of determination, all Notes theretofore authenticated and delivered under this
Indenture except:

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

               (b) 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 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, has been made); and

               (c) 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 Depositor or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Indenture Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Notes that a Responsible Officer of
the Indenture Trustee either actually knows to be so owned or has received
written notice that such Note is 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

                                      11
<PAGE>

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 Depositor or any
Affiliate of any of the foregoing Persons.

          "Outstanding Amount" means, when used with respect to Notes, as of
any date of determination, the aggregate principal amount of all Notes, or a
class of Notes, as applicable, Outstanding as of such date of determination.

          "Owner Trust Accounts" has the meaning specified in Section 8.2.

          "Owner Trust Estate" means all right, title and interest of the
Issuer in and to the property and rights assigned to the Issuer pursuant to
the Deposit and Administration Agreement or the Trust Agreement, all funds on
deposit from time to time in the Owner Trust Accounts and all other property
of the Issuer from time to time, including any rights of the Owner Trustee and
the Issuer granted to the Indenture Trustee pursuant to Granting Clause of
this Indenture.

          "Owner Trustee" means Wilmington Trust Company, not in its
individual capacity but solely as owner trustee under the Trust Agreement, and
any successor Owner Trustee thereunder.

          "Owner Trust Spread Account" has the meaning specified in Section
8.2.

          "Pay Out Event" has the meaning specified in the Series Supplement.

          "Paying Agent" means the Indenture Trustee or any other Person that
meets the eligibility standards for the Indenture Trustee specified in Section
6.11 and is authorized by the Indenture Trustee to make the payments to and
distributions from the Note Distribution Account as provided in Section 2.14
hereof, including payment of principal of or interest on the Notes on behalf
of the Issuer.

          "Payment Date" means July 16, 2001 and the 15th day of each calendar
month thereafter, or if such fifteenth day is not a Business Day, the next
succeeding Business Day.

          "Permitted Investments" means instruments, investment property or
other property consisting of:

               (a) obligations fully guaranteed by the United States of
     America;

               (b) demand deposits, time deposits or certificates of deposit
     of depository institutions or trust companies which mature not later than
     90 days after the date of investment, the certificates of deposit of
     which have a rating in the highest rating category from Moody's and
     Standard & Poor's;

               (c) commercial paper, other than commercial paper issued by
     Chase USA or any of its Affiliates, having, at the time of the
     investment, a rating in the highest rating category from Moody's and
     Standard & Poor's;

                                      12
<PAGE>

               (d) bankers' acceptances (other than banker's acceptances
     issued by Chase USA or any of its Affiliates) issued by any depository
     institution or trust company described in clause (b) above;

               (e) certain repurchase agreements transacted with either (i) an
     entity subject to the United States federal bankruptcy code or (ii) a
     financial institution insured by the FDIC or any broker-dealer with
     "retail customers" that is under the jurisdiction of the Securities
     Investors Protection Corp.; and

               (f) such other investments that by their terms convert to cash
     within a finite time period, other than investments in Chase USA or any
     of its Affiliates, where the short-term unsecured debt or deposits of the
     obligor on such investments are rated "A-1+" by Standard and Poor's and
     P-1 by Moody's.

          "Person" means a legal person, including any individual,
corporation, limited liability company, estate, partnership, joint venture,
association, joint stock company, trust, unincorporated organization, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

          "Pooling and Servicing Agreement" means the Third Amended and
Restated Pooling and Servicing Agreement dated as of November 15, 1999, as
amended by the First Amendment thereto dated as of March 31, 2001, among the
Transferor, the Servicer and the Master Trust Trustee, as it may have been, or
may from time to time be, further amended, modified or supplemented.

          "Predecessor Note" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced
by such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.5 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

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

          "Quarterly Excess Spread Percentage" means, with respect to any
Monthly Period, the average of the current Excess Spread Percentage and the
Excess Spread Percentages associated with the two immediately preceding
Monthly Periods.

          "Rating Agency Condition" means, with respect to any action or
event, that each Note Rating Agency shall have notified the Depositor, the
Administrator, the Indenture Trustee and the Owner Trustee, in writing, that
such action or event will not result in reduction or withdrawal of any then
outstanding rating of any outstanding Note with respect to which it is the
Note Rating Agency.

          "Record Date" means, with respect to any Payment Date, the last
Business Day of the immediately preceding calendar month.

                                      13
<PAGE>

          "Redemption Date" means in the case of a redemption of the Notes
pursuant to Section 10.1, the Distribution Date specified by the Administrator
pursuant to such Section 10.1.

          "Redemption Price" means, with respect to the Notes of each Class,
the Note Principal Balance of the Notes of such Class then outstanding plus
accrued and unpaid interest thereon at the applicable Note Interest Rate for
such Class on the Payment Date on which the Transferor exercises its option to
repurchase the Series Certificate.

          "Reference Banks" means four major banks in the London interbank
market selected by the Issuer.

          "Required Owner Trust Spread Account Amount" means an amount
determined on the Closing Date and on or prior to each Transfer Date and,
except as described below, will be equal to $5,952,380 unless the Quarterly
Excess Spread Percentage (i) is less than or equal to 4.50% per annum but
greater than 4.25% per annum, in which case the Required Owner Trust Spread
Account Amount will be equal to an amount equal to 1.50% of the Note Initial
Principal Balance; (ii) is less than or equal to 4.25% but greater than or
equal to 4.00% per annum, in which case the Required Owner Trust Spread
Account Amount will be equal to an amount equal to 2.00% of the Note Initial
Principal Balance; (iii) is less than or equal to 4.00% per annum but greater
than 3.50% per annum, in which case the Required Owner Trust Spread Account
Amount will be increased to an amount equal to 2.50% of the Note Initial
Principal Balance; (iii) is less than or equal to 3.50% per annum but greater
than 3.00% per annum, in which case the Required Owner Trust Spread Account
Amount will be equal to an amount equal to 3.00% of the Note Initial Principal
Balance; (iv) is less than or equal to 3.00% per annum but greater than 2.50%
per annum, in which case the Required Owner Trust Spread Account Amount will
be equal to 3.50% of the Note Initial Principal Balance; (v) is less than or
equal to 2.50% per annum but greater than or equal to 0% per annum, in which
case the Required Owner Trust Spread Account Amount will be equal to an amount
equal to 4.00% of the Note Initial Principal Balance and (vi) is less than 0%
per annum, in which case the Required Owner Trust Spread Account Amount will
be increased to an amount equal to 9.00% of the Note Initial Principal
Balance. Notwithstanding the foregoing, in no event shall the Required Owner
Trust Spread Account Amount exceed the Class C Note Principal Balance.

          "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, Assistant Treasurer,
Assistant Secretary, or any other officer of the Indenture Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

          "Securities Intermediary" has the meaning specified in Section 8.2.

          "Scheduled Payment Date" means each of the Class A Scheduled Payment
Date, the Class B Scheduled Payment Date and the Class C Scheduled Payment
Date.

                                      14
<PAGE>

          "Series Certificate" means the Series 2001-2 Certificate issued by
the Master Trust on the Closing Date.

          "Series Certificateholder" means Chase Credit Card Owner Trust
2001-2 as the holder of the Series Certificate.

          "Series Supplement" means the Series 2001-2 Supplement to the
Pooling and Servicing Agreement.

          "Servicer" means Chase, in its capacity as the servicer of the
Receivables under the Pooling and Servicing Agreement, and each successor to
Chase (in the same capacity) pursuant to the Pooling and Servicing Agreement.

          "Standard & Poor's" means Standard & Poor's Ratings Services and its
successors and assigns.

          "Transfer Agent" means The Bank of New York, in its capacity as the
transfer agent for the purpose of the original issuance through DTC.

          "Transfer Date" means the Business Day immediately proceeding each
Distribution Date.

          "Transferor" means (a) with respect to the period prior to June 1,
1996, CMB (formerly known as Chemical Bank) and (b) with respect to the period
beginning on June 1, 1996, Chase USA.

          "Trust Agreement" means the Trust Agreement dated as of June 14,
2001, between the Depositor and the Owner Trustee, as the same may be amended
and supplemented from time to time.

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

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

          "indenture securities" 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.

                                      15
<PAGE>

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

          SECTION 1.3. Usage of Terms. With respect to all terms in this
Indenture, the singular includes the plural and the plural the singular; words
importing any gender include the other gender; references to "writing" include
printing, typing, lithography, and other means of reproducing words in a
visible form; references to agreements and other contractual instruments
include all subsequent amendments thereto or changes therein entered into in
accordance with their respective terms and not prohibited by this Indenture;
references to Persons include their permitted successors and assigns; and the
term "including" means "including without limitation." All references herein
to Articles, Sections, Subsections and Exhibits are references to Articles,
Sections, Subsections and Exhibits contained in or attached to this Indenture
unless otherwise specified, and each such Exhibit is part of the terms of this
Indenture.

          SECTION 1.4. Calculations of Interest. All calculations of interest
made hereunder with respect to the Notes shall be made on the basis of a
360-day year based upon the actual number of days elapsed.

                                  ARTICLE II

                                   THE NOTES

          SECTION 2.1. Form. The Notes will be issued in registered form. The
Class A Notes, the Class B Notes and the Class C Notes, in each case together
with the Indenture Trustee's or Authenticating Agent's certificate of
authentication, shall be in substantially the forms set forth in Exhibits A, B
and C, 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 to be appropriate 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. 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 (except, if
applicable, for one Note representing a residual portion of each class which
may be issued in a denomination other than an integral multiple of $1,000).
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 date of authentication and delivery of such Notes or did not hold such
offices at such date. 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 or an Authenticating Agent by the
manual or facsimile 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. The terms
of the Notes set forth in Exhibits A, B and C are part of the terms of this
Indenture.

                                      16
<PAGE>

          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.

          SECTION 2.2. Execution, Authentication and Delivery. The Notes shall
be executed on behalf of the Issuer by any of its Authorized Officers or by any
other authorized signatory of the Issuer. The signature of any such Authorized
Officer on the Notes may be manual or facsimile. The Indenture Trustee shall,
upon written order of the Depositor, authenticate and deliver Class A Notes
for original issue in an aggregate principal amount of $500,000,000 Class B
Notes for original issue in an aggregate principal amount of $41,666,000, and
Class C Notes for original issue in the aggregate principal amount of
$53,572,000. The respective aggregate principal amount of Class A Notes, Class
B Notes and Class C Notes outstanding at any time may not exceed such amounts,
except as provided in Section 2.5.

          SECTION 2.3. Temporary Notes. Pending the preparation of Definitive
Notes, the Issuer may execute, and at the direction of the Issuer, the
Indenture Trustee shall authenticate and deliver, temporary Notes which are
printed, lithographed, typewritten, mimeographed or otherwise produced, of the
tenor of the Definitive Notes in lieu of which they are issued and with such
variations not inconsistent with the terms of this Indenture as the officers
executing such Notes may determine, as evidenced by their execution of such
Notes. If temporary Notes are issued, the Issuer will cause Definitive Notes
to be prepared without unreasonable delay. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.2, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer
shall execute and the Indenture Trustee shall upon receipt of a written order
from the Issuer authenticate and deliver in exchange therefor a like principal
amount of Definitive Notes of authorized denominations. Until so exchanged,
the temporary Notes shall in all respects be entitled to the same benefits
under this Indenture as Definitive Notes.

          SECTION 2.4. Registration 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 Note Registrar shall provide
for the registration of the Notes and the registration of transfers of the
Notes. Chase shall initially be "Note Registrar" for the purpose of
registering Notes and transfers of Notes as herein provided. In the event
that, subsequent to the date of issuance of the Notes, Chase notifies the
Indenture Trustee that it is unable to act as Note Registrar, the Indenture
Trustee shall act, or the Indenture Trustee shall, with the consent of the
Issuer, appoint another bank or trust company, having an office or agency
located in the City of New York and which agrees to act in accordance with the
provisions of this Indenture applicable to it, to act, as successor Note
Registrar under this Indenture. For so long as any Note is issued as a global
Note, the Issuer may, or if and so long as any of the Notes are listed on the
Luxembourg Stock Exchange and such exchange shall so require, the Issuer shall
appoint a co-registrar in Luxembourg or another European city. The Indenture
Trustee may revoke such appointment and remove Chase as Note Registrar if the
Indenture Trustee determines that Chase failed to perform its obligations
under this Indenture in any material respect. Chase shall be permitted to
resign as Note Registrar upon 30 days' written notice to the Indenture
Trustee, the Depositor and the Administrator; provided, however, that such

                                      17
<PAGE>

resignation shall not be effective and Chase shall continue to perform its
duties as Note Registrar until the Indenture Trustee has appointed a successor
Note Registrar with the consent of the Issuer.

          If a Person other than the Indenture Trustee is appointed by the
Issuer as the 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 conclusively 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.

          An institution succeeding to the corporate agency business of the
Note Registrar shall continue to be the Note Registrar without the execution
or filing of any paper or any further act on the part of the Indenture Trustee
or such Note Registrar.

          The Note Registrar shall maintain in the City of New York an office
or offices or agency or agencies where Notes may be surrendered for
registration of transfer or exchange. The Note Registrar initially designates
its corporate trust office located at 450 West 33rd Street, New York, New York
10001-2697 as its office for such purposes. The Note Registrar shall give
prompt written notice to the Indenture Trustee, the Depositor, the
Administrator and to the Noteholders of any change in the location of such
office or agency.

          Upon surrender for registration of transfer of any Note at the
office or agency of the Issuer to be maintained as provided in Section 3.2, if
the requirements of Section 8-401(a) of the Relevant UCC are met, the Issuer
shall execute, the Indenture Trustee shall upon receipt of a written order
from the Issuer authenticate and (if the Note Registrar is different than the
Indenture Trustee, then the Note Registrar shall) deliver to the Noteholder,
in the name of the designated transferee or transferees, one or more new
Notes, in any authorized denominations, of the same class and a like aggregate
principal amount.

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

          All Notes issued upon any registration of transfer or exchange of
the 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 (i) duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder thereof or such Holder's attorney duly authorized in

                                      18
<PAGE>

writing, with such signature guaranteed by a commercial bank or trust company
located, or having a correspondent located, in the City of New York or the
city in which the Corporate Trust Office is located, or by a member firm of a
national securities exchange, and (ii) accompanied by such other documents as
the Indenture Trustee may require. Each Note surrendered for registration of
transfer or exchange shall be cancelled by the Note Registrar and disposed of
by the Indenture Trustee or Note Registrar in accordance with its customary
practice. The Note Registrar shall notify promptly the Transfer Agent of any
transfer or exchange of the Notes pursuant to this Section 2.4.

          No service charge shall be made to a Holder for any registration of
transfer or exchange of the Notes, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange of Notes, other
than exchanges pursuant to Section 2.3 or 9.5 not involving any transfer.

          The preceding provisions of this section notwithstanding, the Issuer
shall not be required to make, and the Note Registrar need not register,
transfers or exchanges of the Notes selected for redemption or of any Note for
a period of 15 days preceding the due date for any payment in full with
respect to such Note.

          The Issuer hereby appoints the Indenture Trustee as the Transfer
Agent.

          SECTION 2.5. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Note Registrar, or the Note Registrar
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Note Registrar and the Indenture
Trustee such security or indemnity as may be required by them to hold the
Issuer, the Note Registrar 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 bona fide purchaser, and provided that
the requirements of Section 8-405 of the Relevant UCC are met, the Issuer
shall execute and the Indenture Trustee or an Authenticating Agent shall
authenticate and (if the Note Registrar is different from the Indenture
Trustee, the Note Registrar shall) deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Note, a replacement Note of like
class, tenor and denomination; provided that if any such destroyed, lost or
stolen Note, but not a mutilated Note, shall have become or within seven days
shall be due and payable, or shall have been called for redemption, instead of
issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen
Note when so due or payable or upon the Redemption Date without surrender
thereof. If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence, a bona fide purchaser of the original Note in lieu of which such
replacement Note was issued presents for payment such original Note, the
Issuer, the Note Registrar 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
bona fide purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer, the Note Registrar 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

                                      19
<PAGE>

reasonable expenses (including the fees and expenses of the Indenture Trustee,
its agents and counsel) connected therewith.

          Every replacement Note issued pursuant to this Section 2.5 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 2.6. Persons Deemed Owner. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Note Registrar and any agent of the Issuer, the Indenture Trustee or the Note
Registrar may treat the Person in whose name any Note is registered (as of the
day of determination) as the owner of such Note for the purpose of receiving
payments of principal of and interest, if any, on such Note and for all other
purposes whatsoever, whether or not such Note shall be overdue, and neither
the Issuer, the Indenture Trustee or the Note Registrar nor any agent of the
Issuer, the Indenture Trustee or the Note Registrar shall be bound by notice
to the contrary.

          SECTION 2.7. Payment of Principal and Interest. (a) On each Transfer
Date, the Paying Agent, acting in accordance with written instructions from
the Administrator, shall make, or shall direct the Master Trust Trustee or the
Paying Agent to make, the following deposits and distributions to the extent
of the Available Amount for such Transfer Date, in the following order of
priority:

               (i) to the Note Distribution Account for distribution to the
     Class A Noteholders on the related Payment Date, the Class A Note
     Interest Requirement for such Transfer Date;

               (ii) to the Note Distribution Account for distribution to the
     Class B Noteholders on the related Payment Date, the Class B Note
     Interest Requirement for such Transfer Date;

               (iii) to the Note Distribution Account for distribution to the
     Class C Noteholders on the related Payment Date, the Class C Note
     Interest Requirement for such Transfer Date;

               (iv) to the Note Distribution Account for distribution to the
     Class A Noteholders on the related Payment Date, the Class A Noteholders'
     Principal Distributable Amount for such Transfer Date;

               (v) to the Note Distribution Account for distribution to the
     Class B Noteholders on the related Payment Date, the Class B Noteholders'
     Principal Distributable Amount for such Transfer Date;

                                      20
<PAGE>

               (vi) to the Note Distribution Account for distribution to the
     Class C Noteholders on the related Payment Date, the Class C Noteholders'
     Principal Distributable Amount for such Transfer Date;

               (vii) to the Owner Trust Spread Account, the excess, if any, of
     (a) the Required Owner Trust Spread Account Amount for such Transfer Date
     over (b) the amount on deposit in the Owner Trust Spread Account on such
     Transfer Date (not taking into account the amount deposited into the
     Owner Trust Spread Account on such Transfer Date described by this clause
     (vii)); and

               (viii) to the Certificateholder, on behalf of the Issuer, the
     remaining Available Amount for such Transfer Date, if any.

          (b) To the extent that on any Transfer Date the Class C Note
Interest Requirement exceeds the Available Amount available to be deposited
into the Note Distribution Account pursuant to subsection 2.7(a)(iii), funds,
to the extent of the lesser of the Required Owner Trust Spread Account Amount
for such Transfer Date and the amount on deposit in the Owner Trust Spread
Account on such Transfer Date, shall be withdrawn from the Owner Trust Spread
Account and deposited in the Note Distribution Account to be applied to pay
the Class C Note Interest Requirement on the related Payment Date pursuant to
subsection 2.7(f).

          (c) To the extent that, on the Transfer Date related to the Class C
Scheduled Payment Date if the Class B Note Principal Balance shall be paid in
full on or prior to such Payment Date and on each Transfer Date following the
Class C Scheduled Payment Date and the payment in full of the Class B Note
Principal Balance and, with respect to any Note Principal Due Date, the
Transfer Date on which an amount equal to the Class B Note Principal Balance
has been deposited in the Note Distribution Account pursuant to subsection
2.7(a)(v), funds, to the extent of the least of (i) the Required Owner Trust
Spread Account Amount for such Transfer Date, (ii) the excess of the Class C
Note Principal Balance over the Investor Interest and (iii) the amount on
deposit in the Owner Trust Spread Account (in each case after giving effect to
any withdrawals pursuant to subsection 2.7(b) on such Transfer Date) shall be
withdrawn from the Owner Trust Spread Account (after giving effect to any
withdrawals pursuant to subsection 2.7(b) on such Transfer Date) and deposited
in the Note Distribution Account to be applied to pay the Class C Noteholders'
Principal Distributable Amount on the related Payment Date pursuant to this
subsection 2.7(c). On the Note Maturity Date, to the extent of the lesser of
the Required Owner Trust Spread Account Amount for such Transfer Date and the
amount on deposit in the Owner Trust Spread Account (in each case after giving
effect to any withdrawals pursuant to subsection 2.7(b) and the preceding
sentence of this subsection 2.7(c) on such Transfer Date) shall be withdrawn
from the Owner Trust Spread Account (after giving effect to any withdrawals
pursuant to subsection 2.7(b) and the preceding sentence of this subsection
2.7(c) on such Transfer Date) and deposited in the Note Distribution Account
to be applied to pay the Class C Noteholders' Principal Distributable Amount
on the Note Maturity Date.

          (d) On each Payment Date, the amount deposited in the Note
Distribution Account pursuant to subsection 2.7(a)(i) on the related Transfer
Date shall be paid by the Paying Agent to the Class A Noteholders in respect
of interest on the Class A Notes. On each Payment Date, beginning with the
earlier of the Class A Scheduled Payment Date and the Note Principal

                                      21
<PAGE>

Due Date, the amount deposited in the Note Distribution Account pursuant to
subsection 2.7(a)(iv) on the related Transfer Date shall be paid by the Paying
Agent to the Class A Noteholders in respect of principal of the Class A Notes.
All principal and interest in respect of the Class A Notes shall be due and
payable to the extent not previously paid on the Note Maturity Date.

          (e) On each Payment Date, the amount deposited in the Note
Distribution Account pursuant to subsection 2.7(a)(ii) on the related Transfer
Date shall be paid by the Paying Agent to the Class B Noteholders in respect
of interest on the Class B Notes. On each Payment Date, beginning with the
earlier of the Class B Scheduled Payment Date and the Note Principal Due Date,
the amount deposited in the Note Distribution Account pursuant to subsection
2.7(a)(v) on the related Transfer Date shall be paid by the Paying Agent to
the Class B Noteholders in respect of principal of the Class B Notes. All
principal and interest in respect of the Class B Notes shall be due and
payable to the extent not previously paid on the Note Maturity Date.

          (f) On each Payment Date, the amount deposited in the Note
Distribution Account pursuant to subsections 2.7(a)(iii) and 2.7(b) on the
related Transfer Date shall be paid by the Paying Agent to the Class C
Noteholders in respect of interest on the Class C Notes. On each Payment Date,
beginning with the earlier Class C Scheduled Payment Date and the Note
Principal Due Date, the amount deposited in the Note Distribution Account
pursuant to subsections 2.7(a)(vi) and 2.7(c) on the related Transfer Date
shall be paid by the Paying Agent to the Class C Noteholders in respect of
principal of the Class C Notes. All principal and interest in respect of the
Class C Notes shall be due and payable to the extent not previously paid on
the note Maturity Date.

          (g) 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 preceding 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
the 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, except for the final installment of principal payable with
respect to such Note on a Payment Date or on a Note Principal Due Date and
except for the Redemption Price for any Note called for redemption pursuant to
Section 10.1 which shall be payable as provided below. The funds represented
by any such checks returned undelivered shall be held in accordance with
Section 3.3.

          (h) All principal and interest payments on each class of Notes shall
be made pro rata to the Noteholders of such class entitled thereto. The Paying
Agent 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 (i) transmitted by facsimile on such Record
Date if Book-Entry Notes are outstanding or (ii) mailed as provided in Section
10.2 not later than three Business Days after such Record Date if Definitive
Notes are outstanding and

                                      22
<PAGE>

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.

          SECTION 2.8. Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Note Registrar, be delivered to the Note Registrar and
shall be promptly cancelled by the Note Registrar. The Issuer may at any time
deliver to the Note Registrar 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 Note Registrar. 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 Note Registrar in accordance with its standard retention or
disposal policy as in effect at the time unless the Issuer shall direct that
they be destroyed or returned to it; provided that such direction is timely
and the Notes have not been previously disposed of by the Note Registrar.

          SECTION 2.9. Release of Collateral. Subject to Section 11.1, the
Indenture Trustee shall release property from the lien of this Indenture only
upon request of the Issuer accompanied by an Officer's Certificate, an Opinion
of Counsel and Independent Certificates in accordance with the TIA
ss.ss.314(c) and 314(d)(1) or an Opinion of Counsel in lieu of such
Independent Certificates to the effect that the TIA does not require any such
Independent Certificates.

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

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

               (b) the Note Registrar, the Paying Agent 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;

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

               (d) the rights of the Note Owners shall be exercised only
     through the Clearing Agency (or to the extent the Note Owners are not
     Clearing Agency Participants, through the Clearing Agency Participants
     through which such Note Owners own Book-Entry Notes) and shall be limited
     to those established by law and agreements between

                                      23
<PAGE>

     such Note Owners and the Clearing Agency and/or the Clearing Agency
     Participants, and all references in this Indenture to actions by the
     Noteholders shall refer to actions taken by the Clearing Agency upon
     instructions from the Clearing Agency Participants, and all
     references in this Indenture to distributions, notices, reports and
     statements to the Noteholders shall refer to distributions, notices,
     reports and statements to the Clearing Agency, as registered holder
     of the Notes, as the case may be, for distribution to the Note
     Owners in accordance with the procedures of the Clearing Agency.
     Pursuant to the Note 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

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

          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 the Note Owners pursuant to
Section 2.12, the Indenture Trustee shall give all such notices and
communications specified herein to be given to the Holders of the Notes to the
Clearing Agency, and shall have no obligation to the Note Owners.

          SECTION 2.12. Definitive Notes. If (a) 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, (b) 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 (c)
after the occurrence of an Event of Default or a Master Trust Servicer
Default, the Note Owners representing beneficial interests aggregating not
less than a majority of the Outstanding Amount of the Notes advise the
Indenture Trustee and the Clearing Agency through the Clearing Agency
Participants in writing, and if the Clearing Agency shall so notify the
Indenture Trustee 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 the Note Owners of the occurrence of any
such event and of the availability of Definitive Notes to the Note Owners
requesting the same. Upon surrender to the Note Registrar of the typewritten
Note or Notes representing the Book-Entry Notes by the Clearing Agency,
accompanied by re-registration instructions, the Issuer shall execute and the
Indenture Trustee shall authenticate and (if the Note Registrar is different
than the Indenture Trustee, then the Note Registrar shall) deliver 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 the Definitive Notes, the Indenture Trustee shall recognize the
Holders of the Definitive Notes as the Noteholders.

                                      24
<PAGE>

          SECTION 2.13. Authenticating Agent. (a) The Indenture Trustee may
appoint one or more authenticating agents (each, an "Authenticating Agent")
with respect to the Notes which shall be authorized to act on behalf of the
Indenture Trustee in authenticating the Notes in connection with the issuance,
delivery, registration of transfer, exchange or repayment of the Notes. The
Indenture Trustee hereby appoints Chase as Authenticating Agent for the
authentication of the Notes upon any registration of transfer or exchange of
such Notes. Whenever reference is made in this Indenture to the authentication
of the Notes by the Indenture Trustee or the Indenture Trustee's certificate
of authentication, such reference shall be deemed to include authentication on
behalf of the Indenture Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Indenture Trustee by an
Authenticating Agent. Each Authenticating Agent, other than Chase, shall be
acceptable to the Issuer.

          (b) Any institution succeeding to the corporate agency business of
an Authenticating Agent shall continue to be an Authenticating Agent without
the execution or filing of any paper or any further act on the part of the
Indenture Trustee or such Authenticating Agent.

          (c) An Authenticating Agent may at any time resign by giving written
notice of resignation to the Indenture Trustee and the Issuer. The Indenture
Trustee may at any time terminate the agency of an Authenticating Agent by
giving notice of termination to such Authenticating Agent and to the Issuer.
Upon receiving such a notice of resignation or upon such a termination, or in
case at any time an Authenticating Agent shall cease to be acceptable to the
Indenture Trustee or the Issuer, the Indenture Trustee promptly may appoint a
successor Authenticating Agent with the consent of the Issuer. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless acceptable to the
Issuer.

          (d) The Administrator shall pay the Authenticating Agent from time
to time reasonable compensation for its services under this Section 2.13.

          (e) The provisions of Sections 6.1, 6.2, 6.3, 6.4, 6.7 and 6.9 shall
be applicable, mutatis mutandis, to any Authenticating Agent.

          (f) Pursuant to an appointment made under this Section 2.13, the
Notes may have endorsed thereon, in lieu of the Indenture Trustee's
certificate of authentication, an alternate certificate of authentication in
substantially the following form:

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

                    THE BANK OF NEW YORK
                      as Indenture Trustee

                    By: ------------------------------------------------------
                                       Authorized Signatory

                                      25
<PAGE>

                     or

                     as Authenticating Agent
                       for the Indenture Trustee,

                        ----------------------------------------------------
                                           Authorized Officer

          SECTION 2.14. Appointment of Paying Agent. (a) The Indenture Trustee
may appoint a Paying Agent with respect to the Notes. The Indenture Trustee
hereby appoints Chase as the initial Paying Agent. The Paying Agent shall have
the revocable power to withdraw funds from the Owner Trust Accounts and make
distributions to the Noteholders and the Certificateholders, pursuant to
Section 2.7. For so long as any of the Notes are listed on the Luxembourg
Stock Exchange or other stock exchange and such exchange so requires, the
Indenture Trustee shall maintain a co-paying agent in Luxembourg or the
location required by such other stock exchange. The Indenture Trustee may
revoke such power and remove the Paying Agent if the Indenture Trustee
determines in its sole discretion that the Paying Agent shall have failed to
perform its obligations under this Indenture in any material respect or for
other good cause. Chase shall be permitted to resign as Paying Agent upon 30
days' written notice to the Depositor and the Indenture Trustee. In the event
that Chase shall no longer be the Paying Agent, the Indenture Trustee shall
appoint a successor to act as Paying Agent (which shall be a bank or trust
company and may be the Indenture Trustee) with the consent of the Depositor,
which consent shall not be unreasonably withheld. If at any time the Indenture
Trustee shall be acting as the Paying Agent, the provisions of Sections 6.1,
6.3 and 6.4 shall apply, mutatis mutandis, to the Indenture Trustee in its
role as Paying Agent.

          The Indenture Trustee will cause each Paying Agent, other than
itself and Chase, 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 (or any other obligor upon the Notes) of which it has actual
     knowledge in the making of any payment required to be made with respect
     to the Notes;

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

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

                                      26
<PAGE>

     ceases to meet the standards required to be met by the 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.

          (b) Chase in its capacity as initial Paying Agent hereunder agrees
that it (i) will hold all sums held by it hereunder for payment to the
Noteholders in trust for the benefit of the Noteholders entitled thereto (and
with respect to the Owner Trust Spread Account, to the extent specified
herein, the benefit of the Certificateholder) until such sums shall be paid to
such Noteholders and (ii) shall comply with all requirements of the Code
regarding the withholding by the Indenture Trustee of payments in respect of
United States federal income taxes due from Note Owners.

          (c) An institution succeeding to the corporate agency business of
the Paying Agent shall continue to be the Paying Agent without the execution
or filing of any paper or any further act on the part of the Indenture Trustee
or such Paying Agent.

          SECTION 2.15. CUSIP Numbers. The Issuer in issuing the Notes may use
"CUSIP" numbers (if then generally in use), and, if so, the Indenture Trustee
shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; provided that any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Notes or
as contained in any notice of a redemption and that reliance may be placed
only on the other identification numbers printed on the Notes, and any such
redemption shall not be affected by any defect in or omission of such numbers.
The Issuer will promptly notify the Indenture Trustee of any change in the
"CUSIP" numbers.

          SECTION 2.16. Determination of LIBOR.

               (a) On each LIBOR Determination Date, the Indenture Trustee
     shall determine LIBOR on the basis of the rate for deposits in United
     States dollars for a one-month period which appears on Telerate Page 3750
     as of 11:00 a.m., London time, on such date. If such rate does not appear
     on Telerate Page 3750, the rate for that LIBOR Determination Date shall
     be determined on the basis of the rates at which deposits in United
     States dollars are offered by the Reference Banks at approximately 11:00
     a.m., London time, on that day to prime banks in the London interbank
     market for a one-month period. The Indenture Trustee shall request the
     principal London office of each of the Reference Banks to provide a
     quotation of its rate. If at least two such quotations are provided, the
     rate for that LIBOR Determination Date shall be the arithmetic mean of
     the quotations. If fewer than two quotations are provided as requested,
     the rate for that LIBOR Determination Date will be the arithmetic mean of
     the rates quoted by major banks in New York City, selected by the Issuer,
     at approximately 11:00 a.m., New York City time, on that day or loans in
     United States dollars to leading European banks for a period equal to the
     relevant Note Interest Period.

               (b) The Indenture Trustee shall provide the Note Interest Rate
     applicable to the then current and immediately preceding Note Interest
     Periods to any Noteholder requesting

                                      27
<PAGE>

     such information by telephoning the Indenture Trustee at the telephone
     number which is currently (212) 815-5286.

               (c) On each LIBOR Determination Date prior to 12:00 noon New
     York City time, the Indenture Trustee shall send to the Issuer by
     facsimile notification of LIBOR for the following Note Interest Period.

                                  ARTICLE III

                                   COVENANTS

          SECTION 3.1. Payment of Principal and Interest. The Issuer will duly
and punctually pay the principal of and interest on the Notes in accordance
with the terms of the Notes and this Indenture. Without limiting the
foregoing, the Issuer will cause to be distributed all amounts on deposit in
the Note Distribution Account on a Payment Date deposited therein pursuant to
Section 2.7 hereof and the Series Supplement (i) for the benefit of the Class
A Notes, to the holders of the Class A Notes, (ii) for the benefit of the
Class B Notes, to the holders of the Class B Notes, (iii) for the benefit of
the Class C Notes, to the holders of the Class C Notes, and (iv) to the extent
so specified, to the Certificateholder. Amounts properly withheld under the
Code by any Person from a payment to any Noteholder of interest and/or
principal shall be considered as having been paid by the Issuer to such
Noteholder for all purposes of this Indenture.

          SECTION 3.2. Maintenance of Office or Agency. The Issuer will
maintain in the City of New York an office or agency where Notes may be
surrendered for registration of transfer or exchange. The Issuer hereby
initially appoints the Note Registrar to serve as its agent for the foregoing
purposes. For so long as any of the Notes are listed on the Luxembourg Stock
Exchange or other stock exchange and such exchange so requires, the Indenture
Trustee shall maintain an office or agency in Luxembourg or in the location
required by such other stock exchange. The Issuer will give prompt written
notice to the Indenture Trustee of the location, and of any change in the
location, of any such office or agency. If at any time the Issuer shall fail
to maintain any such office or agency or shall fail to furnish the Indenture
Trustee with the address thereof, such surrenders, notices and demands may be
made or served at the Corporate Trust Office, and the Issuer hereby appoints
the Indenture Trustee as its agent to receive all such surrenders, notices and
demands.

          SECTION 3.3. Money for Payments To Be Held in Trust. As provided in
Section 8.2, all payments of amounts due and payable with respect to any Notes
that are to be made from amounts withdrawn from the Note Distribution Account
or the Owner Trust Spread Account pursuant to Section 8.2 shall be made on
behalf of the Issuer by the Indenture Trustee or by a Paying Agent, and no
amounts so withdrawn from the Note Distribution Account or the Owner Trust
Spread Account for payments on the Notes shall be paid over to the Issuer
except as provided in this Section 3.3. On or before each Payment Date and
Redemption Date, the Master Trust Trustee or the Paying Agent 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

                                      28
<PAGE>

Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee of
its action or failure so to act.

          The Issuer may, at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, 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 a payment by any Paying Agent to the Indenture Trustee, such Paying Agent
shall be released from all further liability with respect to such money.

          Subject to applicable laws with respect to the escheat of funds, any
money held by the Indenture Trustee or any Paying Agent in trust for the
payment of any amount due with respect to any Note and remaining unclaimed for
two years after such amount has become due and payable shall be discharged
from such trust and be paid to the Issuer on its 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 that the
Indenture Trustee or such Paying Agent, before being required to make any such
repayment, shall at the expense of the Issuer cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in the City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Issuer.
The Indenture Trustee shall also adopt and employ, at the expense of the
Issuer, any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to the
Holders whose notes have been called but have not been surrendered for
redemption or whose right to or interest in moneys due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent, at the last address of record for each such Holder).

          SECTION 3.4. Existence. Except as otherwise permitted by the
provisions of Section 3.10, the Issuer will keep in full effect its existence,
rights and franchises as a common law trust under the laws of the State of
Delaware (unless it becomes, or any successor to the 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 Owner Trust Estate.

          SECTION 3.5. Protection of Owner Trust Estate. The Issuer will from
time to time prepare (or shall cause to be prepared), execute and deliver all
such supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other
instruments, and will take such other action necessary or advisable to:

                                      29
<PAGE>

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

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

               (c) enforce the rights of the Indenture Trustee and the
     Noteholders in any of the Collateral; or

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

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

          SECTION 3.6. Opinions as to Owner 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 March 31 of each calendar year, commencing with
March 31, 2002, 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 are necessary to maintain
the perfection of 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 the perfection of 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 perfection of the
lien and security interest of this Indenture until March 31 in the following
calendar year.

          SECTION 3.7. Performance of Obligations; Servicing of Series
Certificate. (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 Owner 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 ordered by any

                                      30
<PAGE>

bankruptcy or other court or as expressly provided in this Indenture, any
other Basic Documents 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 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 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 other Basic
Documents and in the instruments and agreements included in the Owner Trust
Estate, including but not limited to preparing (or causing to be prepared) and
filing (or causing to be filed) all UCC financing statements and continuation
statements required to be filed by the terms of this Indenture and the Deposit
and Administration Agreement in accordance with and within the time periods
provided for herein and therein.

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

          (e) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees that, unless such action is
specifically permitted hereunder or under the other Basic Documents, it will
not, without the prior written consent of the Indenture Trustee or the Holders
of at least a majority of 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 or the Basic Documents (other than this Indenture), or waive
timely performance or observance by the Administrator or the Transferor under
the Deposit and Administration Agreement; provided that no such amendment
shall (i) increase or reduce in any manner the amount of, or accelerate or
delay the timing of, distributions that are required to be made for the
benefit of the Noteholders, or (ii) reduce the aforesaid percentage of the
Notes which are required to consent to any such amendment, without the consent
of the Holders of all the Outstanding Notes. If any such amendment,
modification, supplement or waiver shall be so consented to by the Indenture
Trustee or such 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
are necessary or appropriate or as the Indenture Trustee may deem necessary or
appropriate under the circumstances.

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

                                      31
<PAGE>

               (a) except as expressly permitted by this Indenture or the
     other Basic Documents, sell, transfer, exchange or otherwise dispose of
     any of the properties or assets of the Issuer, including those included
     in the Owner Trust Estate, unless directed to do so by the Indenture
     Trustee;

               (b) 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 Owner Trust
     Estate; or

               (c) (i) 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, (ii) 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 Owner
     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) or (iii) permit the lien of this Indenture not
     to constitute a valid first priority (other than with respect to any such
     tax, mechanics' or other lien) security interest in the Owner Trust
     Estate.

          SECTION 3.9. Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee on or before March 31 of each year,
commencing March 31, 2002 and otherwise in compliance with the requirements of
TIA Section 314(a)(4), an Officer's Certificate stating, as to the Authorized
Officer signing such Officer's Certificate, that:

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

               (b) to the best of such Authorized Officer's knowledge, based
     on such review, the Issuer has complied with all conditions and covenants
     in all material respects 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. The 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
     thereof 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 the Notes and the performance or observance of every
     agreement and

                                      32
<PAGE>

     covenant of this Indenture on the part of the Issuer to be performed or
     observed, all as provided herein;

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

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

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

               (v) such entity is not subject to regulation as an "investment
     company" within the meaning of the Investment Company Act of 1940, as
     amended;

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

               (vii) 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
     Section 3.10 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) Except as otherwise expressly permitted by this Indenture or the
other Basic Documents, the Issuer shall not convey or transfer all or
substantially all of its properties or assets, including those included in the
Owner 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 thereof, (B) 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 the 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 agree by means of such supplemental indenture that all right,
     title and interest so conveyed or transferred shall be subject and
     subordinate to the rights of the Holders of the Notes, (D) unless
     otherwise provided in such supplemental indenture, expressly agree to
     indemnify, defend and hold harmless the Issuer against and from any loss,
     liability or expense arising under or related to this Indenture and the
     Notes and (E) expressly agree by means of such supplemental indenture
     that such Person (or if a group of persons, then one specified Person)
     shall prepare (or cause to be prepared) and make all filings with the
     Commission (and any other appropriate Person) required by the Exchange
     Act in connection with the Notes;

                                      33
<PAGE>

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

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

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

               (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 Officers' Certificate and an Opinion of Counsel each stating that such
     conveyance or transfer and such supplemental indenture comply with this
     Section 3.10 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 in accordance with Section 3.10(b), Chase Credit Card Owner
Trust 2001-2 and the Owner Trustee will be released from every covenant and
agreement of this Indenture to be observed or performed on the part of the
Issuer with respect to the Notes immediately upon the delivery of written
notice to the Indenture Trustee from the Person acquiring such assets and
properties stating that Chase Credit Card Owner Trust 2001-2 and the Owner
Trustee are 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
Series Certificate in the manner contemplated by this Indenture and the other
Basic Documents, issuing the Notes, making payments thereon, and such other
activities that are necessary, suitable or desirable to accomplish the
foregoing or are incidental to the purposes as set forth in Section 2.3 of the
Trust Agreement.

          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 money borrowed in respect of the Notes or in
accordance with the Basic Documents.

          SECTION 3.14. Administrator's Obligations. The Issuer shall use its
best efforts to cause the Administrator to comply with the Deposit and
Administration Agreement.

          SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities.
Except as contemplated by the Deposit and Administration Agreement or this
Indenture, the Issuer shall

                                      34
<PAGE>

not make any loan or advance or credit to, or guarantee (directly or
indirectly or by an instrument having the effect of assuming another's payment
or performance on any obligation or capability of so doing or otherwise),
endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase,
repurchase or acquire (or agree contingently to do so) any stock, obligations,
assets or securities of, 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) other than the purchase of the Series
Certificate and related property pursuant to the Deposit and Administration
Agreement.

          SECTION 3.17. Restricted Payments. The Issuer shall not, directly or
indirectly, (a) 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, (b) redeem, purchase, retire, or otherwise
acquire for value any such ownership or equity interest or security or (c) set
aside or otherwise segregate any amounts for any such purpose; provided that
the Issuer may make, or cause to be made, distributions to the Depositor, the
Owner Trustee, the Administrator, the Indenture Trustee, Chase USA and the
Noteholders as permitted by, and to the extent funds are available for such
purpose under, the Basic Documents. The Issuer will not, directly or
indirectly, make payments to or distributions from the Note Distribution
Account except in accordance with this Indenture and the other Basic
Documents.

          SECTION 3.18. Notice of Events of Default. The Issuer agrees to give
the Indenture Trustee and the Note Rating Agencies prompt (and in any event
within five Business Days) written notice of each Event of Default, Master
Trust Servicer Default and each default on the part of the Depositor of its
obligations under the Deposit and Administration Agreement.

          SECTION 3.19. Further Instruments and Acts. The Issuer will execute
and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of
this Indenture.

          SECTION 3.20. 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.

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

          SECTION 4.1. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (a)
rights of registration of transfer and exchange, (b) substitution of
mutilated, destroyed, lost or stolen Notes, (c) rights of Noteholders to
receive payments of principal thereof and interest thereon, (d) Sections 3.2,
3.3, 3.4, 3.5, 3.8, 3.10, 3.12, 3.13, 3.15, 3.16 and 3.18, (e) the rights,
obligations and immunities of

                                      35
<PAGE>

the Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.7 and the obligations of the Indenture Trustee under Section
4.2 and (f) 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, either:

                         (A) all Notes theretofore authenticated and delivered
               (other than (1) the Notes that have been destroyed, lost or
               stolen and that have been replaced or paid as provided in
               Section 2.5 and (2) the Notes for which payment money has
               theretofore been deposited in trust or segregated and held in
               trust by the Issuer and thereafter repaid to the Issuer or
               discharged from such trust, as provided in Section 3.3) have
               been delivered to the Indenture Trustee for cancellation;

                         (B) all Notes not theretofore delivered to the
               Indenture Trustee for cancellation have become due and payable
               and the Issuer has irrevocably deposited or caused to be
               irrevocably deposited with the Indenture Trustee cash or direct
               obligations of or obligations guaranteed by the United States
               of America (which will mature prior to the date such amounts
               are payable), in trust for such purpose, in an amount
               sufficient to pay and discharge the entire unpaid principal and
               accrued interest on such Notes not theretofore delivered to the
               Indenture Trustee for cancellation when due on their respective
               Scheduled Payment Dates, Note Maturity Date or Redemption Date
               (if the Notes shall have been called for redemption pursuant to
               Section 10.1);

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

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

          Notwithstanding the satisfaction and discharge of this Indenture,
the obligations of Issuer to the Indenture Trustee under Section 6.7 and, if
money shall have been deposited with the Indenture Trustee pursuant to
subclause (B) of clause (i) of this Section, the obligations of Indenture
Trustee under Section 4.2 and the last paragraph of Section 3.3 shall survive
such satisfaction and discharge.

          SECTION 4.2. Application of Trust Money. All moneys deposited with
the Indenture Trustee pursuant to Section 4.1(i)(B) 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

                                      36
<PAGE>

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 Deposit and
Administration Agreement or required by law.

          SECTION 4.3. Repayment of Moneys Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the
Notes, all moneys then held by any Paying Agent other than the Indenture
Trustee under the provisions of this Indenture with respect to such Notes
shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held
and applied according to Section 3.3 and thereupon such Paying Agent shall be
released from all further liability with respect to such moneys.

          SECTION 4.4. No Revocation or Termination of Issuer Without
Noteholder Approval. Notwithstanding anything herein to the contrary, in no
event shall the Indenture Trustee consent to the termination or revocation of
the Issuer pursuant to Section 8.1 of the Trust Agreement without the consent
of the Holders of a majority of the Outstanding Amount of the Notes, by Act of
such Holders delivered to the Issuer and the Indenture Trustee.

                                  ARTICLE V

                                   REMEDIES

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

               (a) the failure by the Issuer to pay the outstanding principal
     amount of any Class of Notes in full on the Note Maturity Date;

               (b) a failure by the Issuer to pay any interest on any of the
     Notes on any Payment Date, and such failure shall continue for 35 days;

               (c) an Insolvency Event occurs related to the Issuer;

               (d) failure on the part of the Issuer duly to observe or
     perform in any material respect any covenants or agreements of the Issuer
     set forth herein, which failure has a material adverse effect on the
     Noteholders and which continues unremedied for a period of 60 days after
     the date on which written notice of such failure, requiring the same to
     be remedied, shall have been given to the Issuer by the Administrator or
     the Indenture Trustee, or to the Issuer and the Indenture Trustee by the
     Holders of Notes representing an Outstanding Amount aggregating more than
     50% of the Outstanding Amount of the Notes and continues to affect
     materially and adversely the interests of the Noteholders for such
     period; and

               (e) the Issuer is subject to regulation as an "investment
     company" within the meaning of the Investment Company Act of 1940, as
     amended.

                                      37
<PAGE>

          SECTION 5.2. Acceleration of Maturity; Rescission and Annulment. If
an Event of Default shall occur and be continuing, then and in every such case
the Indenture Trustee or the Holders of the Notes representing not less than 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 the Noteholders), and upon any such
declaration the unpaid principal amount of such Notes, together with accrued
and unpaid interest thereon through the date of acceleration, shall become
immediately due and payable. 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 the 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;
provided, that, no such rescission shall affect any subsequent default or
impair any right consequent thereto.

          SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by
the 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 beyond the grace period specified herein for such
payment, or (ii) default is made in the payment of the principal of any Note
when the same becomes due and payable, the Issuer will, upon demand of the
Indenture Trustee, pay to it, for the benefit of the Holders of the Notes, the
whole amount then due and payable on such Notes for principal and interest,
with interest upon the overdue principal, and, to the extent payment at such
rate of interest shall be legally enforceable, upon overdue installments of
interest, at the rate borne by the Notes.

          (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 5.4, 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 Owner Trust Estate, proceedings under Title 11 of the United
States Code or any other applicable Federal or state bankruptcy, insolvency or
other similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or its property or such other
obligor or Person, or in the 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

                                      38
<PAGE>

Trustee, irrespective of whether the principal of any Notes shall then be due
and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Indenture Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered,
by intervention in such proceedings or otherwise:

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

               (ii) unless prohibited by applicable law and regulations, to
     vote on behalf of the Holders of the 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 the 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 willful misconduct.

          (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

                                      39
<PAGE>

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.

          SECTION 5.4. Remedies; Priorities. (a) If an Event of Default shall
have occurred and be continuing and the Notes have been accelerated under
Section 5.2, the Indenture Trustee may do one or more of the following
(subject to Section 5.5):

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

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

               (iii) exercise any remedies of a secured party under the
     Relevant 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 Owner 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 that none of Chase
     USA, any of its Affiliates or any agent of Chase USA shall be permitted
     to purchase the Owner Trust Estate or any portion thereof or rights or
     interest therein;

provided that the Indenture Trustee may not sell or otherwise liquidate the
Owner Trust Estate following an Event of Default, 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 and the sum of the Class A Note Principal Balance,
Class B Note Principal Balance and Class C Note Principal Balance plus accrued
interest thereon, or (C)(1) there has been an Event of Default described in
Section 5.1(a) or (b), (2) the Indenture Trustee determines that the Owner
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 (3) 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
clauses (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 Owner

                                      40
<PAGE>

Trust Estate for such purpose. In addition, the Indenture Trustee may sell or
otherwise liquidate the portion of the Owner Trust Estate consisting of the
Series Certificate only in accordance with and upon satisfaction of the
requirements of Section 16 of the Series Supplement.

          (b) If the Indenture Trustee collects any money or property pursuant
to this Article V, it shall pay out such money or property held as Collateral
for the benefit of the Noteholders in the following order:

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

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

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

          FOURTH: to the Issuer for payment of all liabilities of the Issuer
     in accordance with the Basic Documents and applicable law; and

          FIFTH: to the Certificateholders.

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

          SECTION 5.5. Optional Preservation of the Owner Trust Estate. If the
Notes have been declared to be due and payable under Section 5.2 following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled, the Indenture Trustee may, but need not, elect to
maintain possession of the Owner 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 to maintain
possession of the Owner Trust Estate. In determining whether to maintain
possession of the Owner 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 Owner Trust Estate for such purpose.

          SECTION 5.6. 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

                                      41
<PAGE>

the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

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

               (b) 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 the Indenture Trustee hereunder;

               (c) 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;

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

               (e) no direction inconsistent with such written request has
     been given to the Indenture Trustee during such 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 the 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 the Notes or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this
Indenture, except in the manner herein provided.

          In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of the
Notes, each representing less than a majority of the Outstanding Amount of the
Notes, the Indenture Trustee in its sole discretion may determine what action,
if any, shall be taken, notwithstanding any other provisions of this
Indenture.

          SECTION 5.7. 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 5.8. Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right
or remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as through no such proceeding had
been instituted.

                                      42
<PAGE>

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

          SECTION 5.10. Delay or Omission Not a Waiver. No delay or omission
of the Indenture Trustee or any 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

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

               (b) subject to the express terms of Section 5.4, any direction
     to the Indenture Trustee to sell or liquidate the Owner Trust Estate
     shall be by the Holders of the Notes representing not less than 100% of
     the Outstanding Amount of the Notes;

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

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

               (e) such direction shall be in writing;

provided, further, that, subject to Section 6.1, the Indenture Trustee need
not take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders not consenting to
such action.

          SECTION 5.12. Waiver of Past Defaults. Prior to the declaration of
the acceleration of the maturity of the Notes as provided in Section 5.2, the
Holders of the Notes of not less than a majority of the Outstanding Amount of
the Notes may, on behalf of all such Holders, waive any past Default or Event
of Default and its consequences except a Default (a) in

                                      43
<PAGE>

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. The Issuer shall give prompt written notice of any waiver
to the Note Rating Agencies.

          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 the Indenture Trustee, the filing by any party litigant in
such Proceeding of an undertaking to pay the costs of such Proceeding, and
that such court may in its discretion assess reasonable costs, including
reasonable attorneys' fees and expenses, against any party litigant in such
Proceeding, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section shall
not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit
instituted by any Noteholder or group of Noteholders, in each case holding in
the aggregate more than 10% of the Outstanding Amount of the Notes, or (c) any
suit instituted by any Noteholder for the enforcement of the payment of
principal of or interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture (or, in the case of redemption,
on or after the Redemption Date).

          SECTION 5.14. 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 Owner 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) The Issuer agrees to take all such lawful action as is necessary to compel
or secure the performance

                                      44
<PAGE>

and observance by the Depositor and the Administrator, as applicable, of each
of their respective obligations to the Issuer under or in connection with the
Deposit and Administration 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 Deposit and
Administration Agreement, including the transmission of notices of default on
the part of the Depositor or the Administrator thereunder and the institution
of legal or administrative actions or proceedings to compel or secure
performance by the Depositor or the Administrator of each of their respective
obligations under the Deposit and Administration Agreement.

          (b) If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and, at the direction (which direction shall be in
writing and which may be via facsimile) of the Holders of 66-2/3% of the
Outstanding Amount of the Notes shall, foreclose upon its security interest in
the Issuer's rights under the Deposit and Administration Agreement and
exercise all rights, remedies, powers, privileges and claims of the Issuer
against the Depositor or the Administrator under or in connection with the
Deposit and Administration Agreement, including the right or power to take any
action to compel or secure performance or observance by the Depositor or the
Administrator of each of their respective obligations to the Issuer thereunder
and to give any consent, request, notice, direction, approval, extension or
waiver under the Deposit and Administration Agreement, and any right of the
Issuer to take such action shall be suspended.

                                  ARTICLE VI

                             THE INDENTURE TRUSTEE

          SECTION 6.1. Duties of the Indenture Trustee. (a) The Indenture
Trustee, both prior to and after the occurrence of an Event of Default, shall
undertake to perform such duties and only such duties as are specifically set
forth in this Indenture and the Deposit and Administration Agreement. If an
Event of Default actually known to the Indenture Trustee has occurred and is
continuing, the Indenture Trustee shall exercise the rights and powers vested
in it by this Indenture and the Deposit and Administration Agreement 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; provided, however, that if the Indenture Trustee shall assume the
duties of the Administrator pursuant to Section 5.2 of the Deposit and
Administration Agreement, the Indenture Trustee in performing such duties
shall use the degree of skill and attention customarily exercised by an
administrator with respect to a similar trust estate that it administers for
itself.

          The Indenture Trustee, upon receipt of any resolutions,
certificates, statements, opinions, reports, documents, orders, or other
instruments furnished to the Indenture Trustee that shall be specifically
required to be furnished pursuant to any provision of this Indenture or the
Deposit and Administration Agreement, shall examine them to determine whether
they substantially conform to the requirements of this Indenture or the
Deposit and Administration Agreement; provided, however, that the Indenture
Trustee shall not be responsible for the accuracy or content of any such
resolution, certificate, statement, opinion, report, document, order or other
instrument furnished by the Administrator to the Indenture Trustee pursuant to
this

                                      45
<PAGE>

Indenture or the Deposit and Administration Agreement and the Indenture
Trustee need not confirm or investigate the accuracy of any mathematical
calculations or other facts stated therein.

          (b) No provision of this Indenture shall be construed to relieve the
Indenture Trustee from liability for its own negligent action, its own
negligent failure to act or its own bad faith or wilful misconduct; provided,
however, that:

               (i) prior to the occurrence of an Event of Default, and after
     the curing of all such Events of Default, the Indenture Trustee
     undertakes to perform such duties and only such duties as are
     specifically set forth in this Indenture and the Deposit and
     Administration Agreement, and no implied covenants or obligations shall
     be read into this Indenture or the Deposit and Administration Agreement
     against the Indenture Trustee, and in the absence of bad faith on its
     part or manifest error, 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 or
     the Deposit and Administration Agreement;

               (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 nor shall the Indenture Trustee be liable with respect to any
     action it takes or omits to take in good faith in accordance with this
     Indenture or in accordance with a direction received by it pursuant to
     Section 5.11; and

               (iii) the Indenture Trustee shall not be liable with respect to
     any action taken or omitted to be taken by it in good faith in accordance
     with the direction of the Holders of a majority in principal amount of
     the Notes or Certificates, determined as provided in Sections 2.1, 2.4
     and 5.12, relating to the time, method and place of conducting any
     proceeding for any remedy available to the Indenture Trustee, or
     exercising any trust or power conferred upon the Indenture Trustee, under
     this Indenture with respect to the Notes or Certificates.

          (c) 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.

          (d) 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 Deposit and Administration Agreement.

          (e) No provision of this Indenture shall require the Indenture
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or indemnity satisfactory to it against such risk or
liability is not assured to it, and none of the provisions contained in this
Indenture shall in any event require the Indenture Trustee to perform, or be
responsible for the manner of performance of, any of the obligations of the
Administrator (including its obligations as custodian) under this Indenture
except during such time, if any, as the Indenture Trustee shall be the
successor to, and

                                      46
<PAGE>

be vested with the rights, duties, powers and privileges of,
the Administrator in accordance with the terms of the Deposit and
Administration Agreement.

          (f) The Indenture Trustee shall not be charged with knowledge of an
Event of Default until such time as a Responsible Officer shall have actual
knowledge or have received written notice thereof.

          (g) Except for actions expressly authorized by this Indenture or,
based upon an Opinion of Counsel, in the best interests of the Noteholders,
the Indenture Trustee shall take no action reasonably likely to impair the
security interests created or existing under any asset which is part of the
Collateral or to impair the value of any asset which is part of the
Collateral.

          (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 6.2. Rights of the Indenture Trustee. (a) The Indenture
Trustee may conclusively rely on any document (whether in its original or
facsimile form) 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 Opinion of Counsel. The Indenture Trustee shall not be liable
for any action it takes, suffers or omits to take in good faith in reliance on
the Opinion of Counsel.

          (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee, and the Indenture Trustee shall
not be responsible for any misconduct or negligence on the part of, or for the
supervision of, any such agent, attorney, custodian or nominee appointed with
due care by it hereunder. The Indenture Trustee shall have no duty to monitor
the performance of the Issuer.

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

          (e) The Indenture Trustee may consult with counsel of its own
selection, and the written 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
written advice or opinion of such counsel. A copy of such written advice or
Opinion of Counsel shall be provided to the Depositor, the Administrator and
the Note Rating Agencies.

          (f) Prior to the occurrence of an Event of Default and after the
curing of all Events of Default that may have occurred, the Indenture Trustee
shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument,

                                      47
<PAGE>

opinion, report, notice, request, consent, order, approval, bond, or other
paper or document, unless requested in writing to do so by Holders of the
Notes evidencing not less than 25% of the Outstanding Amount of the Notes;
provided, however, that if the payment within a reasonable time to the
Indenture Trustee of the costs, expenses, or liabilities likely to be incurred
by it in the making of such investigation shall be, in the opinion of the
Indenture Trustee, not reasonably assured to the Indenture Trustee by the
security afforded to it by the terms of this Indenture, the Indenture Trustee
may require reasonable indemnity satisfactory to it against such cost,
expense, or liability or payment of such expenses as a condition precedent to
so proceeding. If the Indenture Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records
and premises of the Issuer, personally or by agent or attorney at the sole
cost of the Issuer and shall incur no liability or additional liability of any
kind by reason of such inquiry or investigation. Nothing in this clause (f)
shall affect the obligation of the Issuer or the Administrator to observe any
applicable law prohibiting disclosure of information regarding the obligors.

          (g) 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.

          (h) 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 Certificate and this Indenture.

          (i) The rights, privileges, protections, immunities and benefits
given 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.

          SECTION 6.3. Individual Rights of the Indenture Trustee. The
Indenture Trustee in its individual or any other capacity may become the owner
or pledgee of the Notes and may otherwise deal with the Issuer or its
Affiliates with the same rights it would have if it were not the Indenture
Trustee; provided, however, that the Indenture Trustee shall take no such
action that shall cause it to no longer meet the requirements of Rule
3(a)-7(a)(4)(i) under the Investment Company Act of 1940, as amended (the
"Investment Company Act"). Any Paying Agent, the Note Registrar, co-registrar
or co-paying agent may do the same with like rights. However, the Indenture
Trustee must comply with Sections 6.11 and 6.12.

          SECTION 6.4. The Indenture Trustee's Disclaimer. The Indenture
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, shall not be accountable
for the Issuer's use of the proceeds from the Notes, and 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.

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          SECTION 6.5. Notice of Defaults. If a Default occurs and is
continuing and if it is either actually known or written notice of the
existence thereof has been delivered to a Responsible Officer of the Indenture
Trustee, the Indenture Trustee shall mail to each Noteholder notice of the
Default within 90 days after such knowledge or notice occurs. Except in the
case of a Default in accordance with the provisions of Section 313(c) of the
TIA in payment of principal of or interest on any Note (including payments
pursuant to the mandatory redemption provisions of such Note), the Indenture
Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is
in the interest of the Noteholders.

          SECTION 6.6. Reports by the Indenture Trustee to Holders. Within the
prescribed period of time for tax reporting purposes after the end of each
calendar year during the term of this Indenture, the Indenture Trustee shall
deliver to each Noteholder such information as may be reasonably required to
enable such Holder to prepare its United States federal, state and local
income or franchise tax returns for such calendar year.

          SECTION 6.7. Compensation and Indemnity. The Issuer shall cause the
Administrator pursuant to the Deposit and Administration Agreement to pay to
the Indenture Trustee from time to time such compensation as agreed upon from
time to time 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 cause the Administrator pursuant to the Deposit and
Administration Agreement to reimburse the Indenture Trustee for all
out-of-pocket expenses incurred or made by it, including costs of collection,
in addition to the compensation for its services. Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Issuer shall
cause the Administrator pursuant to the Deposit and Administration Agreement
to fully indemnify the Indenture Trustee and any predecessor Indenture Trustee
against any and all loss, liability, claim, damage or expense (including the
fees and expenses of either in-house counsel or outside counsel, but not both)
incurred by it in connection with the acceptance and administration of this
trust including costs and expenses of defending itself against any claim
(whether asserted by the Issuer or any Holder or any other Person) or
liability in connection with the performance of its duties hereunder. The
Indenture Trustee shall, upon a Responsible Officer obtaining actual knowledge
thereof, notify the Issuer and the Administrator promptly of any claim for
which it may seek indemnity.

          The Administrator'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 5.1(d) with respect to the Issuer, the expenses are
intended to constitute expenses of administration under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or
similar law.

          Notwithstanding anything herein to the contrary, the Indenture
Trustee's right to enforce any of the Administrator's payment obligations
pursuant to this Section 6.7 shall be subject to the provisions of Section
11.16 and Section 11.17.

          SECTION 6.8. Replacement of the Indenture Trustee. (a) The Indenture
Trustee may give notice of its intent to resign at any time by so

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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 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.

          (b) If the Indenture Trustee gives notice of its intent to resign or
is removed or if a vacancy exists in the office of the 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.

          (c) A successor Indenture Trustee shall deliver a written acceptance
of its appointment to the retiring Indenture Trustee and to the Issuer and
thereupon the resignation or removal of the Indenture Trustee shall become
effective, and the successor Indenture Trustee, without any further act, deed
or conveyance 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 the Indenture Trustee to the
successor Indenture Trustee.

          (d) If a successor Indenture Trustee does not take office within 60
days after the retiring Indenture Trustee gives notice of its intent to resign
or is removed, the retiring Indenture Trustee, the Issuer or the Holders of a
majority in Outstanding Amount of the Notes may petition at the expense of the
Issuer any court of competent jurisdiction for the appointment of a successor
Indenture Trustee.

          (e) 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.

          (f) Any resignation or removal of the Indenture Trustee and
appointment of a successor Indenture Trustee pursuant to any of the provisions
of this Section shall not become effective until acceptance of appointment by
the successor Indenture Trustee pursuant to Section 6.8(c) and payment of all
fees and expenses owed to the outgoing Indenture Trustee.

          (g) Notwithstanding the resignation or removal of the Indenture
Trustee pursuant to this Section, the Issuer's and the Administrator's
obligations under Section 6.7 shall continue for the benefit of the retiring
Indenture Trustee. The Indenture Trustee shall not be liable for the acts or
omissions of any successor Indenture Trustee.

          SECTION 6.9. Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or

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<PAGE>

transferee corporation without any further act shall be the successor
Indenture Trustee. The Indenture Trustee shall provide the Issuer and the Note
Rating Agencies prior written notice of any such transaction.

          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 Indenture
Trustee, and deliver such Notes so authenticated; and in case at that time any
of the Notes shall not have been authenticated, any successor Indenture
Trustee may authenticate such Notes either in the name of any predecessor
Indenture Trustee hereunder or in the name of the successor Indenture Trustee;
and in all such cases such certificate of authentication shall have the same
full force as is provided anywhere in the Notes or in this Indenture with
respect to the certificate of authentication of the Indenture Trustee.

          SECTION 6.10. Appointment of Co-Indenture Trustee or Separate
Indenture Trustee. (a) Notwithstanding any other provisions of this Indenture,
at any time, for the purpose of meeting any legal requirement of any
jurisdiction in which any part of the Issuer 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 to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of
the Issuer, and to vest in such Person or Persons, in such capacity and for
the benefit of the Noteholders, such title to the Issuer, or any part hereof,
and, subject to the other provisions of this Section, such power, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary
or desirable. The Administrator will pay all reasonable fees and expenses of
any co-trustee or co-trustees or separate trustee or separate trustees. The
appointment of any separate trustee or co-trustee shall not absolve the
Indenture Trustee of its obligations under this Indenture. No co-trustee or
separate trustee hereunder shall be required to meet the terms of eligibility
as an Indenture Trustee under Section 6.11, and no notice to the Noteholders
of the appointment of any co-trustee or separate trustee shall be required
under Section 6.8.

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

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

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

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<PAGE>

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

          (c) Any notice, request or other writing given to the Indenture
Trustee shall be deemed to have been given to each of the then separate
trustees and co-trustees, as effectively as if given to each of them. Every
instrument appointing any separate trustee or co-trustee shall refer to this
Indenture and the conditions of this Article VI. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be vested with
the estates or property specified in its instrument of appointment, either
jointly with the Indenture Trustee or separately, as may be provided therein,
subject to all the provisions of this Indenture, specifically including every
provision of this Indenture relating to the conduct of, affecting the
liability of, or affording protection to, the Indenture Trustee. Every such
instrument shall be filed with the Indenture Trustee (with a copy given to the
Issuer).

          (d) Any separate trustee or co-trustee may at any time constitute
the Indenture Trustee its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or
in respect of this Indenture on its behalf and in its name. If any separate
trustee or co-trustee shall die, 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 ss.310(a). The Indenture
Trustee shall at all times meet the requirements of Rule 3(a)-7(a)(4)(i) under
the Investment Company Act and shall not provide credit or credit enhancement
to the Issuer. The Indenture Trustee shall have a combined capital and surplus
of at least $150,000,000 as of the last day of the most recent fiscal quarter
for such institution and shall be subject to examination or supervision by
federal or state authorities. The Indenture Trustee shall not be an Affiliate
of the Issuer, the Transferor, the Administrator or the Servicer. The
long-term unsecured debt of the Indenture Trustee shall at all times be rated
not lower than "BBB-" by Standard & Poor's and Fitch (if rated by Fitch) and
"Baa3" by Moody's or such other ratings as are acceptable to the Note Rating
Agencies. The Indenture Trustee shall comply with TIA ss.310(b), including the
optional provision permitted by the second sentence of TIA ss.310(b)(9);
provided that there shall be excluded from the operation of TIA ss.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 the TIA
ss.310(b)(1) are met.

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

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<PAGE>

                                 ARTICLE VII

                        NOTEHOLDERS' LISTS AND REPORTS

          SECTION 7.1. The Issuer To Furnish the Indenture Trustee Names and
Addresses of the Noteholders. The Issuer will furnish or cause to be furnished
to the Indenture Trustee (a) not more than five days after each Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the
names and addresses of the Holders as of such Record Date and (b) at such
other times as the Indenture Trustee may request in writing, within 14 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 such list is
furnished, provided that so long as the Indenture Trustee is the Note
Registrar, no such list shall be required to be furnished.

          SECTION 7.2. Preservation of Information; Communications to the
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 7.1 or, if the Indenture Trustee is acting as Note
Registrar, the names and addresses of the Holders of Notes received by the
Indenture Trustee in its capacity as the Note Registrar. The Indenture Trustee
may destroy any list furnished to it as provided in such Section 7.1 upon
receipt of a new list so furnished.

          (b) The Noteholders may communicate pursuant to TIA ss.312(b) with
other Noteholders with respect to their rights under this Indenture or under
the Notes. Upon the issuance of Definitive Notes, three or more holders of the
Notes (each of whom has owned a Note for at least six months) may, by written
request to the Indenture Trustee pursuant to the terms of the Indenture,
obtain access to the list of all Noteholders maintained by the Indenture
Trustee for the purpose of communicating with other Noteholders with respect
to their rights under the Indenture or the Notes. The Indenture Trustee may
elect not to afford the requesting Noteholders access to the list of such
Noteholders if it agrees to mail the desired communication or proxy, on behalf
and at the expense of the requesting Noteholders, to all Noteholders of
record.

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

          SECTION 7.3. Reports by the Administrator. On or prior to each
Transfer Date, the Administrator will provide to the Indenture Trustee for the
Indenture Trustee to forward to each Noteholder of record, and to the Owner
Trustee, a statement setting forth (to the extent applicable) the following
information as to the Notes with respect to the related Payment Date or the
period since the previous Payment Date, as applicable:

               (i) the amount of the distribution allocable to principal of
     the Notes;

               (ii) the amount of the distribution allocable to interest on or
     with respect to the Notes;

               (iii) the aggregate outstanding principal balance of the Notes
     after giving effect to all payments reported under clause (i) above on
     such date; and

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<PAGE>

               (iv) the amount on deposit in a Owner Trust Spread Account, if
     any, on such Payment Date, after giving effect to all transfers and
     withdrawals therefrom and all transfers and deposits thereto on such
     Payment Date, and the amount required to be on deposit in the Owner Trust
     Spread Account on such date.

          Each amount set forth pursuant to clauses (i) and (ii) above will be
expressed as a dollar amount per $1,000 of the initial principal balance of
the Notes.

          SECTION 7.4. Reports by the 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 any
     annual reports and of any 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
     ss.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 7.4(a) as may be required by rules and regulations
     prescribed from time to time by the Commission.

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

          SECTION 7.5. Reports by the Indenture Trustee. Within 60 days after
each July 15, beginning with July 15, 2002 the Indenture Trustee shall mail to
each Noteholder as required by TIA ss. 313(c) a brief report dated as of such
date that complies with TIA ss. 313(a). The Indenture Trustee also shall
comply with TIA ss. 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 or delisted therefrom. On each Payment Date, the Indenture Trustee
shall include with each payment to each Noteholder a copy of the statement for
the related Monthly Period provided to the Indenture Trustee pursuant to
subsection 4.1(d) of the Deposit and Administration Agreement.

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<PAGE>

                                 ARTICLE VIII

                     ACCOUNTS, DISBURSEMENTS AND RELEASES

          SECTION 8.1. Collection of Money. Except as otherwise 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 and the Deposit and Administration Agreement. Except as otherwise
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 Owner
Trust Estate, the Indenture Trustee may take such action as may be appropriate
to enforce such payment or performance, including the institution and
prosecution of appropriate proceedings. Any such action shall be without
prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

          SECTION 8.2. Owner Trust Accounts. On or prior to the Closing Date,
the Issuer shall cause the Administrator to establish and maintain, an
Eligible Deposit Account, in the name of the Indenture Trustee, for the
benefit of the Noteholders, the "Note Distribution Account" and another
Eligible Deposit Account in the name of the Indenture Trustee for the benefit
of the Class C Noteholders and, to the extent expressly provided herein, the
Certificateholder, the "Owner Trust Spread Account". The "Note Distribution
Account" shall bear a designation clearly indicating that the funds deposited
therein are held for the benefit of the Noteholders. The "Owner Trust Spread
Account" shall bear a designation clearly indicating that the funds deposited
therein are held for the benefit of the Class C Noteholders and the
Certificateholder. The Indenture Trustee shall possess all right, title and
interest in all funds on deposit from time to time in the Note Distribution
Account and the Owner Trust Spread Account (collectively, the "Owner Trust
Accounts") and in all proceeds thereof. The Note Distribution Account shall be
under the sole dominion and control of the Indenture Trustee for the benefit
of the Noteholders. The Owner Trust Spread Account shall be under the sole
dominion and control of the Indenture Trustee for the benefit of the Class C
Noteholders (and, to the extent expressly provided herein, the
Certificateholder). Each Owner Trust Account shall be a securities account.
The Bank of New York agrees that it is the securities intermediary (the
"Securities Intermediary") with respect thereto, and as such agrees that the
account is maintained for the Issuer and, subject to the terms of this
agreement, that the Issuer is entitled to exercise the rights that comprise
any financial asset credited to the related Owner Trust Account. All
securities or other property underlying any financial assets credited to the
Owner Trust Accounts shall be registered in the name of The Bank of New York,
indorsed to The Bank of New York in blank or credited to another securities
account maintained in the name of The Bank of New York and in no case will any
financial asset credited to the Owner Trust Accounts be registered in the name
of the Issuer, payable to the order of the Issuer or specially indorsed to the
Issuer. Until termination of this Indenture, the Issuer shall not be entitled
to give the Indenture Trustee any entitlement orders with respect to the Owner
Trust Accounts. If, at any time, any Owner Trust Account ceases to be an
Eligible Deposit Account, the Administrator shall notify the Indenture
Trustee, and the Indenture Trustee upon being notified (or the Administrator
on its behalf) shall,

                                      55
<PAGE>

within 10 Business Days, establish a new Owner Trust Account which meets the
conditions specified in the definition of Eligible Deposit Account, and shall
transfer any cash or any investments to such new Owner Trust Account. The
Indenture Trustee, at the direction of the Administrator, shall make
withdrawals from the Owner Trust Accounts from time to time, in the amounts
and for the purposes set forth in this Indenture.

          On the Closing Date, the Issuer shall deposit in the Owner Trust
Spread Account the amount received from the Depositor pursuant to subsection
2.1(a) of the Deposit and Administration Agreement. Funds on deposit in the
Owner Trust Spread Account shall be invested at the direction of the
Administrator by the Indenture Trustee or the Paying Agent in Permitted
Investments. On each Transfer Date, after all deposits to and withdrawals from
the Owner Trust Spread Account, such amounts shall be invested in Permitted
Investments maturing on the next succeeding Transfer Date, or on the Closing
Date in Permitted Investments maturing on the first Transfer Date. On each
Transfer Date, the Indenture Trustee or the Paying Agent, acting at the
Administrator's request, shall transfer Investment Earnings from the Owner
Trust Spread Account to the Note Distribution Account to the extent required
to pay the Class C Note Interest Requirement on the related Payment Date
pursuant to subsection 2.7(a)(iii). The Indenture Trustee shall cause such
Permitted Investments to be held in such manner as to give the Indenture
Trustee "control" (as such term is defined in the Section 8-106 of the New
York UCC) over such Permitted Investments. No Permitted Investment shall be
disposed of prior to its maturity. The Securities Intermediary shall comply
with entitlement orders issued by the Indenture Trustee without further
consent by the Issuer.

          The Required Owner Trust Account Amount shall be adjusted on each
Transfer Date until the amount required is on deposit in the Owner Trust
Spread Account; provided, however, that the Required Owner Trust Spread
Account Amount shall not be adjusted downward until at least three months have
elapsed since the first month for which an increase was required. To the
extent so instructed by the Administrator on any Transfer Date, the Indenture
Trustee shall, if the amount on deposit in the Owner Trust Spread Account is
greater than the Required Owner Trust Spread Account Amount for such Transfer
Date, pay the amount of such excess to the Certificateholder.

          SECTION 8.3. Owner Trust Spread Account Amount Increase. Upon the
occurrence of the Pay Out Event (other than as a result of an Event of
Default), the Required Owner Trust Spread Account Amount shall automatically
be increased to 4.0% of the initial Note Initial Principal Balance. If an
Event of Default pursuant to subsection 5.01(c), (d) or (e) has occurred and
is continuing, the Indenture Trustee may by written notice, or shall upon
written notice from Holders of at least 66 2/3% of the Outstanding Amount of
the Notes to the Administrator, increase the Required Owner Trust Spread
Account Amount to 4.0% of the Initial Invested Amount. If an Event of Default
described in subsection 5.01(a) or (b) has occurred and is continuing, the
Required Owner Trust Spread Account Amount, with respect to any Transfer Date,
shall automatically be increased to an amount equal to the sum of (a) the
amount on deposit in the Owner Trust Spread Account on such Transfer Date plus
(b) the Available Amount of such Transfer Date after giving effect to the
applications described in subsections 2.7(a)(i) through (vi); provided,
however, that, if upon the occurrence of an Event of Default described in
Section 5.1(a) of this Indenture the maturity of the Notes is not accelerated
pursuant to Section

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<PAGE>

5.2 of this Indenture, the increase in the Required Owner Trust Spread Account
Amount, for any Transfer Date, shall be limited to an amount equal to the
Class C Note Principal Balance.

          SECTION 8.4. General Provisions Regarding Owner Trust Spread
Account. (a) So long as the Notes have not been accelerated pursuant to
Section 5.2, all or a portion of the funds in the Owner Trust Spread Account
shall be invested in Permitted Investments and reinvested by the Indenture
Trustee or the Paying Agent upon Issuer Order (which Issuer Order may be upon
direction of the Administrator). All income or other gain (net of losses and
investment expenses) from investments of moneys deposited in the Owner Trust
Spread Account shall be applied, as directed by the Administrator by an Issuer
Order, (a) to the extent available, to pay the Class C Note Interest
Requirement and (b) to the extent of any remaining investment proceeds, to
increase the amount on deposit on the Owner Trust Spread Account. Such Issuer
Order shall not direct the Indenture Trustee to make any investment of any
funds or to sell any investment held in the Owner Trust Spread Account unless
the security interest granted and perfected in such account will continue to
be perfected in such investment or the proceeds of such sale, 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 6.1(c), the Indenture Trustee and the Paying
Agent shall not in any way be held liable by reason of any insufficiency in
the Owner Trust Spread Account resulting from any loss on any Permitted
Investment included therein except for losses attributable to the Indenture
Trustee's or the Paying Agent's failure to make payments on such Permitted
Investments issued by the Indenture Trustee, in its commercial capacity as
principal obligor and not as trustee, in accordance with their terms.

          (c) If (i) the Administrator shall have failed to give investment
directions for any funds on deposit in the Owner Trust Spread Account to the
Indenture Trustee or the Paying Agent by 11:00 a.m. New York City time (or
such other time as may be agreed by the Administrator and the Indenture
Trustee) on any Business Day, or (ii) a Default or Event of Default shall have
occurred and be continuing with respect to the Notes but the Notes shall not
have been declared due and payable pursuant to Section 5.2, or, if such Notes
shall have been declared due and payable following an Event of Default,
amounts collected or receivable from the Owner Trust Estate are being applied
in accordance with Section 5.5 as if there had not been such a declaration,
then the Indenture Trustee shall, to the fullest extent practicable, invest
and reinvest funds in the Owner Trust Spread Account in one or more Permitted
Investments. The Indenture Trustee shall not be liable for losses in respect
of such investments in Permitted Investments that comply with the requirements
of the Basic Documents except for losses attributable to the Indenture
Trustee's failure to make payments on such Permitted Investments issued by the
Indenture Trustee, in its commercial capacity as principal obligor and not as
trustee, in accordance with their terms.

          SECTION 8.5. Release of Owner Trust Estate. (a) The Indenture
Trustee shall, 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

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Article VIII shall be bound to ascertain the Indenture Trustee's authority,
inquire into the satisfaction of any conditions precedent or see to the
application of any moneys.

          (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding, release any remaining portion of the Owner 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 Note
Distribution Account. The Indenture Trustee shall release property from the
lien of this Indenture pursuant to this Section 8.5(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
ss.ss. 314(c) and 314(d)(1) meeting the applicable requirements of Section
11.1.

          SECTION 8.6. 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 8.5(a), accompanied by copies of any instruments involved,
and the Indenture Trustee may also require as a condition of such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture
Trustee, stating the legal effect of any such action, outlining the steps
required to complete the same, and concluding that all such action will not
materially and adversely impair the security for the Notes or the rights of
the Noteholders; provided, however that such Opinion of Counsel shall not be
required to express an opinion as to the fair value of the Owner 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.

          SECTION 8.7. Treatment as Financial Assets. Each item of property
(whether investment property, financial asset, security, instrument or cash)
credited to the Owner Trust Accounts shall be treated as a financial asset.
The Owner Trust Accounts shall be governed by the law of the State of New York
and New York shall be the Securities Intermediary jurisdiction.

          SECTION 8.8. Powers Coupled With an Interest. The rights and powers
granted in the Article 8 to the Indenture Trustee have been granted in order
to perfect its security interest in the Owner Trust Account, are powers
coupled with an interest and will be affected neither by the bankruptcy or
insolvency of the Issuer nor by the lapse of time.

                                  ARTICLE IX

                            SUPPLEMENTAL INDENTURES

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

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

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     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 materially and adversely affect the
     interests of the Holders of the Notes;

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

               (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; or

               (viii) to interpose one or more special purpose entities
     between Chase USA and the Master Trust so that the Transferor is one or
     more of such special purpose entities; provided, that, any such amendment
     pursuant to this clause (viii) shall be made only if (a) the Rating
     Agency Condition is satisfied and (b) such amendment would not, but for
     this clause (viii), require the consent of all of the Noteholders
     affected by such amendment pursuant to Section 9.2 of this Indenture.
     Nothing in this clause (viii) of Section 9.1 shall be construed to mean
     that any such amendment would have required, but for such clause, the
     consent of any Noteholders.

The Issuer and the Indenture Trustee shall not enter into any indenture
supplemental hereto if such indenture would cause either (x) the Issuer or the
Master Trust to be classified as an association or a publicly traded
partnership taxable as a corporation for United States federal income tax
purposes or (y) a taxable event that could cause the beneficial owner of any
Outstanding Amount of Notes to recognize gain or loss for such purposes.

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          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.

          SECTION 9.2. Supplemental Indentures with Consent of the
Noteholders. The Issuer and the Indenture Trustee, when authorized by the
Issuer, also may, with prior notice to the Note Rating Agencies and with the
consent of the Holders of 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 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
     Note 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 Owner 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 provisions of this Indenture
     or 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 sell or liquidate the
     Owner Trust Estate pursuant to Section 5.4;

               (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 any of the other 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

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     of such calculation) or to affect the rights of the Holders of the 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
     Owner 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 determine whether 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. Any amendment, waiver or
modification consented to by the Noteholders shall not be effective unless
each of the Note Rating Agencies has provided confirmation to the Issuer and
the Indenture Trustee that such amendment, waiver or modification shall not
result in the reduction or removal of the rating of any Class of the Notes
affected by such amendment, waiver or modification.

          It shall not be necessary for any Noteholders under this Section to
approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Noteholders 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. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

          SECTION 9.3. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations
of rights, obligations, duties, liabilities and immunities under this
Indenture of the Indenture Trustee, the Issuer 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 and the Notes affected
thereby for any and all purposes.

          SECTION 9.4. Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall comply in all respects with the TIA.

          SECTION 9.5. 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

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Issuer or the Indenture Trustee shall so require, 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.

          SECTION 9.6. Execution of Supplemental Indentures. In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts
created by this Indenture, the Indenture Trustee shall be entitled to receive,
and (subject to Section 6.1) 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 which
affects the Indenture Trustee's own rights, duties or immunities under this
Indenture or otherwise.

                                   ARTICLE X

                              REDEMPTION OF NOTES

          SECTION 10.1. Redemption. The Notes are subject to redemption in
whole, but not in part, at the direction of the Depositor, on any date on
which the Series Certificate is retransferred to the Transferor pursuant to
Section 4 of the Series Supplement. The Issuer shall furnish each Note Rating
Agency notice of such redemption. If the Notes are to be redeemed pursuant to
this Section 10.1, the Issuer shall furnish notice of such redemption to the
Indenture Trustee no later than fifteen (15) Business Days prior to the
Redemption Date, and the Issuer shall, on the related Transfer Date, deposit
with the Indenture Trustee in the Note Distribution Account the Redemption
Price of the Notes to be redeemed whereupon all such Notes shall be due and
payable on the Redemption Date upon the furnishing of a notice complying with
Section 10.2 to each Holder of the Notes.

          SECTION 10.2. Form of Redemption Notice. Notice of redemption under
Section 10.1 shall be given by the Indenture Trustee by facsimile or by
first-class mail, postage prepaid, transmitted or mailed prior to the
applicable Redemption Date to each Holder of the Notes, as of the close of
business on the Record Date preceding the applicable Redemption Date, at such
Holder's address appearing in the Note Register.

          All notices of redemption shall state:

               (i) the Redemption Date;

               (ii) the Redemption Price;

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

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<PAGE>

               (iv) that interest on the Notes shall cease to accrue on the
     Redemption Date; and

               (v) the applicable CUSIP numbers for such Notes.

               (vi) 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
     Notes shall not impair or affect the validity of the redemption of any
     other Note.

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

                                  ARTICLE XI

                                 MISCELLANEOUS

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

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

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

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

               (iii) a statement that, in the opinion of each such signatory,
     such signatory has made such examination or investigation as is necessary
     to enable such signatory to express an informed opinion as to whether
     such covenant or condition has been complied with; and

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<PAGE>

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

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

               (vi) 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),
     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) 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.

               (vii) 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.

               (viii) Whenever the Issuer is required to furnish to the
     Indenture Trustee an Officer's Certificate certifying or stating the
     opinion of any signer thereof as to the matters described in clause
     (iii), 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, as set forth in the
     certificates required by clause (iii) 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.

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

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          SECTION 11.2. Form of Documents Delivered to the 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 to legal matters,
upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon
which his or her certificate or opinion is based are erroneous. Any such
certificate of an Authorized Officer or Opinion of Counsel may be based,
insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Administrator, the Depositor
or the Issuer, stating that the information with respect to such factual
matters is in the possession of the Administrator, the Depositor or the
Issuer, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect
to such matters are erroneous.

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

          Whenever in this Indenture, in connection with any application,
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document (x) as a condition of the granting of such
application, or (y) 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 each case be conditions precedent to the right of the Issuer to have
such application granted or to the sufficiency of such certificate or report.
The foregoing shall not, however, be construed to affect the Indenture
Trustee's right to rely upon the truth and accuracy of any statement or
opinion contained in any such document as provided in Article VI.

          SECTION 11.3. Actions of Noteholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by the Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by an agent 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, when required, to the Issuer or the Administrator. Such
instrument or instruments (and the action or actions 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 conclusive in favor of the Indenture
Trustee, the Issuer and the Administrator, if made in the manner provided in
this Section 11.3.

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

          (c) Any request, demand, authorization, direction, notice, consent,
waiver or other act by a Noteholder shall bind every Holder of every Note
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, in respect of anything done, or omitted to be done, by the
Indenture Trustee, the Issuer or the Administrator in reliance thereon,
regardless of whether notation of such action is made upon such Note.

          (d) The Indenture Trustee may require such additional proof of any
matter referred to in this Section 11.3 as it shall deem necessary.

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

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

               (b) The Issuer by the Indenture Trustee or any Noteholder shall
     be sufficient for every purpose hereunder if personally delivered or
     mailed certified mail, return receipt to the Issuer addressed to: Chase
     Credit Card Owner Trust 2001-2, in care of Wilmington Trust Company, not
     in its individual capacity but solely as Owner Trustee for the Chase
     Credit Card Owner Trust 2001-2, at Rodney Square North, 1100 North Market
     Street, Wilmington, DE 19890-0001, Attention: Corporate Trust
     Administration 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 Note Rating Agencies by the
Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered or mailed certified mail, return receipt requested to (i)
in the case of Moody's, at the following address: Moody's Investors Service,
99 Church Street, New York, New York 10007, Attention: ABS Monitoring Group,
(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:
Asset Backed Surveillance Department and (iii) in the case of Fitch, at the
following address: Fitch, Inc., One State Street Plaza, New York, New York
10004; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

          SECTION 11.5. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later

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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 the 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 Note Rating
Agencies, failure to give such notice shall not affect any other right or
obligations created hereunder, and shall not under any circumstance constitute
a Default or Event of Default.

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

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

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

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

          SECTION 11.9. Successors and Assigns. All covenants and agreements
in this Indenture and the Notes by the Issuer shall bind its successors and
assigns. All agreements of the Indenture Trustee in this Indenture shall bind
its successors.

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          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 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 (only to the extent
expressly provided herein) Chase, the Noteholders, any other party secured
hereunder, and any other person with an ownership interest in any part of the
Owner Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

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

          SECTION 11.13. GOVERNING LAW. THIS INDENTURE SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED 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 or to satisfy any
provision of the TIA.

          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 Depositor, the Administrator, the Transferor, the Servicer,
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 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

                                      68
<PAGE>

subject to, and entitled to the benefits of, the terms and provisions of
Articles IV, V, VI and VII of the Trust Agreement.

          SECTION 11.17. No Petition. Notwithstanding any prior termination of
this Indenture, the Indenture Trustee and each Noteholder or Note Owner, by
its acceptance of a Note or beneficial interest in a Note, as the case may be,
hereby covenants that (a) they, shall not at any time with respect to the
Issuer or the Master Trust, acquiesce, petition or otherwise invoke or cause
the Issuer or the Master Trust to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case
against the Issuer or the Master Trust under any Federal or state bankruptcy,
insolvency or similar law or appointing a receiver, conservator, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the
Issuer or the Master Trust or any substantial part of its property, or
ordering the winding up or liquidation of the affairs of the Issuer or the
Master Trust, (b) any claim that they may have at any time against the corpus
of the Master Trust that they may seek to enforce against the corpus of the
Master Trust, shall be subordinate to the payment in full, including
post-petition interest, in the event that the Master Trust becomes a debtor or
debtor in possession in a case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect or
otherwise subject to any insolvency, reorganization, liquidation,
rehabilitation or other similar proceedings, of the claims of the holders of
any securities of the Master Trust and the holders of any other notes, bonds,
contracts or other obligations that are related to the Master Trust and (c)
they hereby irrevocably make the election afforded by Title 11 United States
Code Section 1111(b)(1)(A)(i) to secured creditors to receive the treatment
afforded by Title 11 United State Code Section 1111(b)(2) with respect to any
secured claim that they may have at any time against the Issuer or the Master
Trust.

          SECTION 11.18. 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 11.19. Tax Treatment. The Issuer intends that the Notes will
be treated as debt of the Certificateholder for all United States tax
purposes. Each Noteholder, by acceptance of its Note, and each holder of a
beneficial interest in a Note, by the acquisition of a beneficial interest
therein, agree to treat the Notes as indebtedness of the Certificateholder for
all United States tax purposes.

                                      69
<PAGE>

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

                WILMINGTON TRUST COMPANY
                not in its individual capacity but solely as Owner Trustee
                for Chase Credit Card Owner Trust 2001-2

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

                THE BANK OF NEW YORK
                solely in its capacities as Indenture Trustee,
                Securities Intermediary and Transfer Agent

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

                                      70
<PAGE>

                                                                     EXHIBIT A

                             FORM OF CLASS A NOTE

REGISTERED                                                      $____________3
No. A-_____                                                    CUSIP NO. [   ]

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

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

               CHASE CREDIT CARD OWNER TRUST 2001-2

          CLASS A FLOATING RATE ASSET BACKED NOTES

        (i)    Chase Credit Card Owner Trust 2001-2, a common law trust
               organized and existing under the laws of the State of Delaware
               (including any successor, the "Issuer"), for value received,
               hereby promises to pay to CEDE & CO., or its registered
               assigns, the principal sum of ______ DOLLARS ($________),
               partially payable on each applicable Payment Date in an amount
               equal to the result obtained by multiplying a fraction, the
               numerator of which is $__________ and the denominator of which
               is $___________ by the aggregate amount, if any, payable from
               the Note Distribution Account in respect of principal on the
               Class A Notes pursuant to Section 3.1 of the Indenture on such
               Payment Date; provided that the entire unpaid principal amount
               of this Note shall be due and payable on the September 2008
               Payment Date (which is September 15, 2008). The Issuer will pay
               interest on this Note at the rate per annum shown above, on
               each Payment Date until the principal of this Note is paid or
               made available for payment, on the principal amount of this
               Note outstanding on the preceding Payment Date (after giving
               effect to all payments of principal made on the preceding
               Payment Date), subject to certain limitations contained in
               Sections 2.7, 3.1 and 8.2 of the Indenture. Interest

_________________
3  Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

<PAGE>

               on this Note will accrue for each Payment Date from the most
               recent Payment Date on which interest has been paid to but
               excluding the then current Payment Date or, if no interest has
               yet been paid, from June 14, 2001. Interest will be computed on
               the basis of the actual number of days elapsed in a 360-day
               year (which is 32 days in the case of the Note Interest Period
               preceding the July 16, 2001 Payment Date). Such principal of
               and interest on this Note shall be paid in the manner specified
               in the Indenture.

          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.

                                      2
<PAGE>

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

Dated: __________, ____

                CHASE CREDIT CARD OWNER TRUST 2001-2

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

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

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Dated:  ________ __, _____

                THE BANK OF NEW YORK
                not in its individual capacity but solely as Indenture
                Trustee

                By:
                   ------------------------------------------------------
                     Authorized Signatory

                                      3
<PAGE>

                               [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A Floating Rate Asset Backed Notes (herein called the
"Class A Notes" or the "Notes"), all issued under an Indenture dated as of
June 14, 2001 (such Indenture, as supplemented or amended, is herein called
the "Indenture"), between the Issuer and The Bank of New York, not in its
individual capacity but solely as indenture trustee (the "Indenture Trustee",
which term includes any successor Indenture Trustee under the Indenture) and
as securities intermediary, 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 not otherwise defined herein and that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

          The Class A Notes, the Class B Notes and the Class C Notes are and
will be equally and ratably secured by the collateral pledged as security
therefor as provided in the Indenture.

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

          Each Holder or Note Owner, by acceptance of a Note, or, in the case
of a Note Owner, a beneficial interest in the 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 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 failure to pay any installment or call owing to such entity.

          It is the intent of the Depositor, the Administrator, the Issuer,
the Noteholders, the Note Owners and Chase USA, that the Notes will be
classified as indebtedness of the Issuer for all United States tax purposes.
The Noteholders, by acceptance of a Note, agree to treat, and to take no
action inconsistent with the treatment of, the Notes as indebtedness of the
Issuer for such tax purposes.

          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 they will not at any time institute against the Issuer, or join in any
institution against the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under

                                      4
<PAGE>

any United States Federal or state bankruptcy or similar law in connection
with any obligations relating to the Notes, the Indenture or any of the other
Basic Documents.

          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 Wilmington Trust Company in its
individual capacity, any owner of a beneficial interest in the Issuer, nor any
of their respective partners, beneficiaries, agents, officers, directors,
employees, 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 Issuer for the sole purpose 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 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.

                                      5
<PAGE>

                                  ASSIGNMENT

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

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

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

-------------------------------------------------------------------------------
                        (name and address of assignee)

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

Dated:                                                                        4
      -------------------------          -------------------------------------
                                                  Signature Guaranteed:

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

______________
4    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.

                                      6
<PAGE>

                                                                     EXHIBIT B

                             FORM OF CLASS B NOTE

REGISTERED                                                      $____________5
No. B-_____                                                    CUSIP NO. [   ]

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

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

                     CHASE CREDIT CARD OWNER TRUST 2001-2

                   CLASS B FLOATING RATE ASSET BACKED NOTES

          Chase Credit Card Owner Trust 2001-2, a common law trust organized
and existing under the laws of the State of Delaware (including any successor,
the "Issuer"), for value received, hereby promises to pay to CEDE & CO., or
its registered assigns, the principal sum of ___________ DOLLARS ($_________),
partially payable on each applicable Payment Date in an amount equal to the
result obtained by multiplying (i) a fraction, the numerator of which is
$________ and the denominator of which is $________ by the (ii) the aggregate
amount, if any, payable from the Note Distribution Account in respect of
principal on the Class B Notes pursuant to Section 3.1 of the Indenture on
such Payment Date; provided that the entire unpaid principal amount of this
Note shall be due and payable on the September 2008 Payment Date (which is
September 15, 2008). No payments of principal of the Class B Notes will be
made until the principal of the Class A Notes has been paid in full. The
Issuer will pay interest on this Note at the rate per annum shown above, on
each Payment Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Payment Date (after giving effect to all payments of principal made on the
preceding Payment Date), subject to certain limitations contained in Sections
2.7, 3.1 and 8.2 of the Indenture. Interest on this Note will accrue for each
Payment Date from the most recent Payment Date on which interest has been paid
to but excluding the then current Payment Date or, if no interest has yet been
paid, from June 14, 2001. Interest will be computed on the basis of the actual
number of days elapsed in a 360-day year (which is 32 days in the case of the
Note Interest Period preceding the July 16, 2001 Payment Date). Such principal
of and interest on this Note shall be paid in the manner specified in the
Indenture.

          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.

__________________
5  Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

                                      2
<PAGE>

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

Dated:   ________ __, ____

                         CHASE CREDIT CARD OWNER TRUST 2001-2

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

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

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Dated:   ________ __, _____

                         THE BANK OF NEW YORK
                         not in its individual capacity but solely as Indenture
                         Trustee

                         By:
                            ---------------------------------------------------
                              Authorized Signatory

                                      3
<PAGE>

                               [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class B Floating Rate Asset Backed Notes (herein called the
"Class B Notes" or the "Notes"), all issued under an Indenture dated as of
June 14, 2001 (such Indenture, as supplemented or amended, is herein called
the "Indenture"), between the Issuer and The Bank of New York, not in its
individual capacity but solely as trustee (the "Indenture Trustee", which term
includes any successor Indenture Trustee under the Indenture) and as
securities intermediary, 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 not otherwise defined herein and that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

          The Class B Notes, and the Class A Notes and Class C Notes are and
will be equally and ratably secured by the collateral pledged as security
therefor as provided in the Indenture.

          The Issuer shall pay interest on overdue installments of interest at
the Class B Note Interest Rate to the extent lawful.

          Each Holder or Note Owner, by acceptance of a Note, or, in the case
of a Note Owner, a beneficial interest in the 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 herewith or therewith, against (i) the Indenture Trustee or the
Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in 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 Indenture Trustee or the Owner 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 failure to pay
any installment or call owing to such entity.

          It is the intent of the Depositor, the Administrator, the Note
Owners, the Issuer, the Noteholders and Chase USA that the Notes will be
classified as indebtedness of the Issuer for all United States tax purposes.
The Noteholders, by acceptance of a Note, agree to treat, and to take no
action inconsistent with the treatment of, the Notes as indebtedness of the
Issuer for such tax purposes.

          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 they will not at any time institute against the Issuer, or join in any
institution against the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under

                                      4
<PAGE>

any United States Federal or state bankruptcy or similar law in connection
with any obligations relating to the Notes, the Indenture or any of the other
Basic Documents.

          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 Wilmington Trust Company in its
individual capacity, any owner of a beneficial interest in the Issuer, nor any
of their respective partners, beneficiaries, agents, officers, directors,
employees, 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 Issuer for the sole purpose 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 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.

                                      5
<PAGE>

                                  ASSIGNMENT

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

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

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

-------------------------------------------------------------------------------
                        (name and address of assignee)

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

Dated:                                                                       6
      ------------------        ----------------------------------------------
                                    Signature Guaranteed:

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

___________________
6  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.

                                      6
<PAGE>
                                                                     EXHIBIT C

                             FORM OF CLASS C NOTE

REGISTERED                                                  $                7
No. C-_____                                                     CUSIP NO [   ]

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

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

                     CHASE CREDIT CARD OWNER TRUST 2001-2

                   CLASS C FLOATING RATE ASSET BACKED NOTES

          Chase Credit Card Owner Trust 2001-2, a common law trust organized
and existing under the laws of the State of Delaware (including any successor,
the "Issuer"), for value received, hereby promises to pay to CEDE & CO., or
its registered assigns, the principal sum of _____________ DOLLARS
($________), partially payable on each applicable Payment Date in an amount
equal to the result obtained by multiplying (i) a fraction, the numerator of
which is $________ and the denominator of which is $________ by the (ii) the
aggregate amount, if any, payable from the Note Distribution Account in
respect of principal on the Class C Notes pursuant to Section 3.1 of the
Indenture on such Payment Date; provided that the entire unpaid principal
amount of this Note shall be due and payable on the September 2008 Payment
Date (which is September 15, 2008). No payments of principal of the Class C
Notes will be made until the principal of the Class A Notes and the Class B
Notes have been paid in full. The Issuer will pay interest on this Note at the
rate per annum described in the Indenture, 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 the preceding Payment Date),
subject to certain limitations contained in Sections 2.7, 3.1 and 8.2 of the
Indenture. Interest on this Note will accrue for each Payment Date from the
most recent Payment Date on which interest has been paid to but excluding the
then current Payment Date or, if no interest has yet been paid, from June 14,
2001.

___________________
7  Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

<PAGE>

Interest will be computed on the basis of the actual number of days elapsed in
a 360-day year (which is 32 days in the case of the Note Interest Period
preceding the July 16, 2001 Payment Date). Such principal of and interest on
this Note shall be paid in the manner specified in the Indenture.

          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.

                                      2
<PAGE>

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

Dated:   ____________ __, ____

                         CHASE CREDIT CARD OWNER TRUST 2001-2

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

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

                                      3
<PAGE>

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Dated:   ________ __, ____

                         THE BANK OF NEW YORK
                         not in its individual capacity but solely as Indenture
                         Trustee

                         By:
                            --------------------------------------------------
                              Authorized Signatory

                                      4
<PAGE>

                               [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class C Floating Rate Asset Backed Notes (herein called the
"Class C Notes" or the "Notes"), all issued under an Indenture dated as of
June 14, 2001 (such Indenture, as supplemented or amended, is herein called
the "Indenture"), between the Issuer and The Bank of New York, not in its
individual capacity but solely as trustee (the "Indenture Trustee", which term
includes any successor Indenture Trustee under the Indenture) and as
securities intermediary, 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 not otherwise defined herein and that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

          The Class C Notes, the Class A Notes and the Class B Notes are and
will be equally and ratably secured by the collateral pledged as security
therefor as provided in the Indenture.

          The Issuer shall pay interest on overdue installments of interest at
the Class C Note Interest Rate to the extent lawful.

          Each Holder or Note Owner, by acceptance of a Note, or, in the case
of a Note Owner, a beneficial interest in the 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 herewith or therewith, against (i) the Indenture Trustee or the
Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in 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 Indenture Trustee or the Owner 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 failure to pay
any installment or call owing to such entity.

          It is the intent of the Depositor, the Administrator, the Note
Owners, the Issuer, the Noteholders and Chase USA that, the Notes will be
classified as indebtedness of the Issuer for all United States tax purposes.
The Noteholders, by acceptance of a Note, agree to treat, and to take no
action inconsistent with the treatment of, the Notes as indebtedness of the
Issuer for such tax purposes.

          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 they will not at any time institute against the Issuer, or join in any
institution against the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under

                                      4
<PAGE>

any United States Federal or state bankruptcy or similar law in connection
with any obligations relating to the Notes, the Indenture or any of the other
Basic Documents.

          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 Wilmington Trust Company, in its
individual capacity, any owner of a beneficial interest in the Issuer, nor any
of their respective partners, beneficiaries, agents, officers, directors,
employees, 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 Issuer for the sole purpose 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 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.

                                      5
<PAGE>

                                  ASSIGNMENT

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

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

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

-------------------------------------------------------------------------------
                        (name and address of assignee)

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

Dated:                                                                        8
      -----------------          ---------------------------------------------
                                    Signature Guaranteed:

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

__________________
8  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.

                                      6
<PAGE>

                                                                     EXHIBIT D

                       FORM OF NOTE DEPOSITORY AGREEMENT

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

2         N.A. means Not Applicable.

3         Denominations of $1,000 and integral multiples of $1,000 in excess
          thereof.

4         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.

5         Denominations of $1,000 and integral multiples of $1,000 in excess
          thereof.

6         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.

7         Denominations of $1,000 and integral multiples of $1,000 in excess
          thereof.

8         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.<PAGE>

                                                                     Exhibit 4.1

                                                                  EXECUTION COPY

                         Michael Foods Acquisition Corp.

                                     - and -

                               Michael Foods, Inc.

                                  $200,000,000

               11 3/4% Senior Subordinated Notes due April 1, 2011

                               Purchase Agreement

                              dated March 16, 2001

                         Banc of America Securities LLC

                            Bear, Stearns & Co. Inc.

<PAGE>

                                Table of Contents

                                                                            Page
                                                                            ----

Section 1.     Representations and Warranties..................................3
        (a)    No Registration Required........................................3
        (b)    No Integration of Offerings or General Solicitation.............3
        (c)    Eligibility for Resale Under Rule 144A..........................4
        (d)    The Offering Memorandum.........................................4
        (e)    The Purchase Agreement..........................................4
        (f)    The Registration Rights Agreement...............................5
        (g)    The DTC Letter of Representations...............................5
        (h)    Authorization of the Securities and the Exchange Securities.....5
        (i)    Authorization of the Indenture..................................6
        (j)    Authorization of the Supplemental Indenture.....................6
        (k)    Authorization of the Pledge Agreement...........................6
        (l)    Security Interest...............................................7
        (m)    Descriptions in the Offering Memorandum.........................7
        (n)    No Material Adverse Change......................................7
        (o)    Independent Accountants.........................................7
        (p)    Preparation of the Financial Statements.........................8
        (q)    Incorporation and Good Standing of Acquisition and the
               Company and its Subsidiaries....................................8
        (r)    Capitalization and Other Capital Stock Matters..................8
        (s)    Non-Contravention of Instruments; No Further
               Authorizations or Approvals Required............................9
        (t)    No Material Actions or Proceedings.............................10
        (u)    Intellectual Property Rights...................................11
        (v)    All Necessary Permits, Etc. ...................................11
        (w)    Title to Properties............................................11
        (x)    Material Agreements............................................11
        (y)    Tax Law Compliance.............................................12
        (z)    Company Not an "Investment Company"............................12
        (aa)   Insurance......................................................12
        (bb)   No Price Stabilization or Manipulation.........................12
        (cc)   Solvency.......................................................13
        (dd)   No Unlawful Contributions or Other Payments....................13
        (ee)   Company's Accounting System....................................13
        (ff)   Compliance with Environmental Laws.............................13
        (gg)   ERISA Compliance...............................................14
        (hh)   Regulation S Compliance........................................15
        (ii)   Taxes; Fees....................................................15
        (jj)   No Labor Disputes..............................................15
        (kk)   Merger.........................................................15
        (ll)   Senior Credit Facility.........................................15
        (mm)   Repayment of Existing Debt.....................................15
        (nn)   No Operations..................................................16

                                       i
<PAGE>

Section 2.     Purchase, Sale and Delivery of the Securities..................16
        (a)    The Securities.................................................16
        (b)    The Closing Date...............................................16
        (c)    Delivery of the Notes..........................................16
        (d)    Delivery of Offering Memorandum to the Initial Purchasers......17
        (e)    Initial Purchasers as Qualified Institutional Buyer............17

Section 3.     Additional Covenants...........................................17
        (a)    Initial Purchasers' Review of Proposed
               Amendments and Supplements.....................................17
        (b)    Amendments and Supplements to the Offering Memorandum
               and Other Securities Act Matters...............................17
        (c)    Copies of the Offering Memorandum..............................18
        (d)    Blue Sky Compliance............................................18
        (e)    Use of Proceeds................................................18
        (f)    Depositary.....................................................18
        (g)    Additional Issuer Information..................................18
        (h)    Future Agreement Not to Offer or Sell Additional Securities....19
        (i)    Future Reports to the Initial Purchasers.......................19
        (j)    No Integration.................................................19
        (k)    Legended Securities............................................20
        (l)    PORTAL.........................................................20
        (m)    Rating of Securities...........................................20
        (n)    Collateral.....................................................20

Section 4.     Payment of Expenses............................................20

Section 5.     Conditions of the Obligations of the Initial Purchasers........21
        (a)    Accountants' Comfort Letter....................................21
        (b)    No Material Adverse Change or Ratings Agency Change............21
        (c)    Opinion of Counsel for Acquisition.............................21
        (d)    Opinion of Counsel for the Company.............................21
        (e)    Opinion of Counsel for the Initial Purchasers..................22
        (f)    Officers' Certificate..........................................22
        (g)    Bring-down Comfort Letters.....................................22
        (h)    PORTAL Listing.................................................22
        (i)    Registration Rights Agreement..................................22
        (j)    Deposit of Collateral..........................................22
        (k)    Depositary.....................................................23
        (l)    Pledge Agreement...............................................23
        (m)    Agreement with Vestar and the Collateral Agent.................23
        (n)    Additional Documents...........................................23

Section 6.     Reimbursement of Initial Purchasers' Expenses..................23

Section 7.     Offer, Sale and Resale Procedures..............................23
        (a)    Offers and Sales Only to Qualified Institutional Buyers
               and Non-U.S. Persons...........................................23

                                       ii
<PAGE>

        (b)    No General Solicitation........................................24
        (c)    Restrictions on Transfer.......................................24

Section 8.     Indemnification................................................25
        (a)    Indemnification of the Initial Purchasers......................25
        (b)    Indemnification of Acquisition, the Company and
               their Directors and Officers...................................26
        (c)    Notifications and Other Indemnification Procedures.............27
        (d)    Settlements....................................................27

Section 9.     Contribution...................................................28

Section 10.    Termination of this Agreement..................................29

Section 11.    Representations and Indemnities to Survive Delivery............29

Section 12.    Notices........................................................30

Section 13.    Successors.....................................................31

Section 14.    Partial Unenforceability.......................................31

Section 15.    Governing Law; Consent to Jurisdiction.........................31
        (a)    Governing Law Provisions.......................................31
        (b)    Consent to Jurisdiction........................................31

Section 16.    Default of One or More of the Several Initial Purchasers.......32

Section 17.    General Provisions.............................................32

Section 18.    Liability of the Company Prior to the Merger...................33

SCHEDULE A       -    Guarantors

SCHEDULE B       -    Initial Purchasers

SCHEDULE C       -    Material Agreements

SCHEDULE D       -    Domestic Subsidiaries of Michael Foods, Inc.

EXHIBIT A        -    Form of Registration Rights Agreement

EXHIBIT B        -    Form of Pledge Agreement

EXHIBIT C        -    Form of Opinion of Counsel for Acquisition

EXHIBIT D        -    Form of Opinion of Counsel to the Company

                                      iii
<PAGE>

ANNEX 1          -    Terms and Conditions of Offers and Sales

                                       iv
<PAGE>

                               Purchase Agreement

                                                                  March 16, 2001

BANC OF AMERICA SECURITIES LLC
BEAR, STEARNS & CO. INC.
   as Initial Purchasers
c/o BANC OF AMERICA
9 West 57th Street, 47th Floor New
York, NY 10019

Ladies and Gentlemen:

            Introductory. Michael Foods Acquisition Corp., a Minnesota
corporation ("Acquisition"), proposes to issue and sell to Banc of America
Securities LLC and Bear, Stearns & Co. Inc. (the "Initial Purchasers"), acting
severally and not jointly, the respective amounts set forth in such Schedule B
of a $200,000,000 aggregate principal amount of Acquisition's 11 3/4% Senior
Subordinated Notes due April 1, 2011 (the "Notes").

            The Notes will be issued pursuant to an indenture, dated as of March
27, 2001 (the "Indenture"), between Acquisition and BNY Midwest Trust Company,
as trustee (the "Trustee"). Notes issued in book-entry form will be issued in
the name of The Depository Trust Company (the "Depositary") or its nominee
pursuant to a letter of representations, to be dated as of the Closing Date (as
defined in Section 2) to be entered into in connection with the purchase and
sale of the Securities (the "DTC Letter of Representations"), among Acquisition,
the Trustee and the Depositary.

            As described in the Offering Memorandum (as defined below), the
Notes are being sold as part of the financing that will be used to consummate
the acquisition of Michael Foods, Inc., a Minnesota corporation (the "Company")
pursuant to an Agreement and Plan of Merger dated as of December 21, 2000, as
amended on March 6, 2001 (the "Merger Agreement") among the Company, M-Foods
Holdings, Inc. and Acquisition, pursuant to which Acquisition will merge with
and into the Company (the "Merger"), and the Company will be the surviving
corporation and a wholly owned subsidiary of M-Foods Holdings, Inc. M-Foods
Holdings, Inc. is a corporation owned by M-Foods Investors, LLC, which, at the
consummation of the Merger, will be owned by affiliates of Vestar Capital
Partners IV, L.P. ("Vestar") and Goldner Hawn Johnson & Morrison Incorporated,
certain members of the Company's senior management and existing stockholders.
The Merger is subject to the approval of a majority of the shareholders of the
Company.

<PAGE>

            All the proceeds from the issuance of the Notes will be delivered to
and held by BNY Midwest Trust Company, as collateral agent (the "Collateral
Agent"), pursuant to a collateral pledge and security agreement, dated March 27,
2001 (the "Pledge Agreement"). In connection with the consummation of the Merger
and the satisfaction of certain conditions set forth in the Pledge Agreement,
the Collateral Agent will release the Collateral (as defined in the Pledge
Agreement) to or upon the order of Acquisition. In the event the Merger is not
consummated prior to May 31, 2001, Acquisition will be required to redeem the
Notes in accordance with their terms.

            As a result of the Merger, all of Acquisition's obligations under
this Agreement, the Registration Rights Agreement (defined below), the Indenture
and the Notes will, by operation of law, become obligations of the Company. In
connection with the release of the Collateral in connection with the
consummation of the Merger and after consummation of the Merger, the Trustee,
the Company and the Guarantors will enter into a supplemental indenture (the
"Supplemental Indenture"), a form of which is included as an attachment to the
Indenture, whereby the obligations of Acquisition under the Notes and the
Indenture will become obligations of the Company and guaranteed by the
Guarantors (as defined below).

            The payment of principal of, premium and Liquidated Damages (as
defined in the Indenture), if any, and interest on the Notes and the Exchange
Notes (as defined below) will, upon consummation of the Merger, become fully and
unconditionally guaranteed on a senior subordinated and unsecured basis, jointly
and severally by (i) each of the Company's domestic subsidiaries listed in
Schedule A attached hereto, and (ii) any subsidiary of the Company formed or
acquired after the Closing Date that executes an additional guarantee in
accordance with the terms of the Indenture, and respective successors and
assigns of the subsidiaries of the Company referred to in (i) and (ii) above
(collectively, the "Guarantors"), pursuant to their guarantees (the
"Guarantees"). The Notes and the Guarantees attached thereto are herein
collectively referred to as the "Securities"; and the Exchange Notes and the
Guarantees attached thereto are herein collectively referred to as the "Exchange
Securities."

            The holders of the Notes will be entitled to the benefits of a
registration rights agreement, to be dated as of March 27, 2001 (the
"Registration Rights Agreement"), among Acquisition (and, after the Merger, the
Company) and the Initial Purchasers, substantially in the form of Exhibit A
attached hereto, pursuant to which Acquisition (and, after the Merger, the
Company) agrees to file, within 90 days of the Closing Date, a registration
statement with the Securities and Exchange Commission (the "Commission")
registering the Exchange Securities under the Securities Act of 1933, as amended
(the "Securities Act," which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder).

            Acquisition and the Company understand that the Initial Purchasers
propose to make an offering of the Securities on the terms and in the manner set
forth herein and in the Offering Memorandum (as defined below) and agree that
the Initial Purchasers may resell, subject to the conditions set forth herein,
all or a portion of the Securities to purchasers (the "Subsequent Purchasers")
at any time after the date of this Agreement. The Securities are to be offered
and sold to or through the Initial Purchasers without being registered with the
Commission under the Securities Act, in reliance upon exemptions therefrom. The
terms of the Securities and the Indenture will require that investors that
acquire Securities expressly agree

                                       2
<PAGE>

that Securities may only be resold or otherwise transferred, after the date
hereof, if such Securities are registered for sale under the Securities Act or
if an exemption from the registration requirements of the Securities Act is
available (including the exemptions afforded by Rule 144A under the Securities
Act ("Rule 144A") or Regulation S under the Securities Act ("Regulation S")).

            Acquisition, with the assistance of the Company, has prepared and
delivered to the Initial Purchasers copies of a preliminary offering memorandum,
dated March 2, 2001 (the "Preliminary Offering Memorandum"), and has prepared
and will deliver to the Initial Purchasers, copies of the Offering Memorandum
(defined below), describing the terms of the Securities, each for use by the
Initial Purchasers in connection with their solicitation of offers to purchase
the Securities. As used herein, the "Offering Memorandum" shall mean, with
respect to any date or time referred to in this Agreement, the offering
memorandum, dated March 16, 2001, including amendments or supplements thereto,
in the most recent form that has been prepared and delivered by Acquisition,
with the assistance of the Company, to the Initial Purchasers in connection with
their solicitation of offers to purchase Securities. Further, any reference to
the Preliminary Offering Memorandum or the Offering Memorandum shall be deemed
to refer to and include any Additional Issuer Information (as defined in Section
3(g)) furnished by Acquisition or the Company prior to the completion of the
distribution of the Securities.

            All references in this Agreement to financial statements and other
information which is "contained," "included" or "stated" in the Offering
Memorandum (or other references of like import) shall be deemed to mean and
include all such financial statements and other information which are
incorporated by reference in the Offering Memorandum.

            Each of Acquisition and the Company hereby confirms its respective
agreement with the Initial Purchasers as follows:

            Section 1. Representations and Warranties. Acquisition and the
Company hereby severally and not jointly represent, warrant and covenant to each
Initial Purchaser as follows:

            (a) No Registration Required. Subject to compliance by the Initial
      Purchasers with the representations and warranties set forth in Section
      2(e) hereof and with the procedures set forth in Section 7 hereof, it is
      not necessary in connection with the offer, sale and delivery of the
      Securities to the Initial Purchasers and to each Subsequent Purchaser in
      the manner contemplated by this Agreement and the Offering Memorandum to
      register the Securities under the Securities Act or, until such time as
      the Exchange Securities are issued pursuant to an effective registration
      statement, to qualify the Indenture under the Trust Indenture Act of 1939
      (the "Trust Indenture Act," which term, as used herein, includes the rules
      and regulations of the Commission promulgated thereunder).

            (b) No Integration of Offerings or General Solicitation. None of
      Acquisition, the Company or any Guarantor has, directly or indirectly,
      solicited any offer to buy or

                                       3
<PAGE>

      offered to sell, and none of them will, directly or indirectly, solicit
      any offer to buy or offer to sell, in the United States or to any United
      States citizen or resident, any security which is or would be integrated
      with the sale of the Securities in a manner that would require the
      Securities to be registered under the Securities Act. None of Acquisition,
      the Company, the Guarantors, their respective affiliates (as such term is
      defined in Rule 501(b) under the Securities Act (each, an "Affiliate")) or
      any person acting on their behalf (other than the Initial Purchasers, as
      to whom neither Acquisition, the Company nor any Guarantor makes any
      representation or warranty) has engaged or will engage, in connection with
      the offering of the Securities, in any form of general solicitation or
      general advertising within the meaning of Rule 502(c) under the Securities
      Act. With respect to those Securities sold in reliance upon Regulation S,
      (i) none of Acquisition, the Company, the Guarantors, their Affiliates or
      any person acting on their behalf (other than the Initial Purchasers, as
      to whom neither Acquisition, the Company nor any Guarantor makes any
      representation or warranty) has engaged or will engage in any directed
      selling efforts within the meaning of Regulation S and (ii) each of
      Acquisition, the Company, the Guarantors and their Affiliates and any
      person acting on their behalf (other than the Initial Purchasers, as to
      whom neither the Company nor any Guarantor makes any representation or
      warranty) has complied and will comply with the offering restrictions set
      forth in Regulation S.

            (c) Eligibility for Resale Under Rule 144A. The Securities are
      eligible for resale pursuant to Rule 144A and will not be, at the Closing
      Date, of the same class as securities listed on a national securities
      exchange registered under Section 6 of the Securities Exchange Act of
      1934, as amended (the "Exchange Act," which term, as used herein, includes
      the rules and regulations of the Commission promulgated thereunder) or
      quoted in a U.S. automated interdealer quotation system.

            (d) The Offering Memorandum. The Offering Memorandum does not, and
      at the Closing Date will not, include an untrue statement of a material
      fact or omit to state a material fact necessary in order to make the
      statements therein, in the light of the circumstances under which they
      were made, not misleading; provided that this representation, warranty and
      agreement shall not apply to statements in or omissions from the Offering
      Memorandum made in reliance upon and in conformity with information
      furnished to Acquisition or the Company, as the case may be, in writing by
      the Initial Purchasers expressly for use in the Offering Memorandum. Each
      of the Preliminary Offering Memorandum and the Offering Memorandum, as of
      its date, contains all the information specified in, and meeting the
      requirements of Rule 144A(d)(4). None of Acquisition, the Company or any
      Guarantor has distributed and none of them will distribute, prior to the
      later of the Closing Date and the completion of the Initial Purchasers'
      distribution of the Securities, any offering material in connection with
      the offering and sale of the Securities other than the Preliminary
      Offering Memorandum, the Offering Memorandum or as agreed upon by the
      Initial Purchasers.

            (e) The Purchase Agreement. This Agreement has been duly authorized,
      executed and delivered by, and (assuming the due authorization, execution
      and delivery thereof by the Initial Purchasers) is a valid and binding
      agreement of, Acquisition and the Company, enforceable in accordance with
      its terms, except as rights to indemnification

                                       4
<PAGE>

      and contribution hereunder may be limited by applicable law and except as
      the enforcement hereof may be limited by bankruptcy, insolvency,
      reorganization, moratorium or other similar laws relating to or affecting
      the rights and remedies of creditors or by general equitable principles.

            (f) The Registration Rights Agreement. At the Closing Date, the
      Registration Rights Agreement will have been duly authorized, executed and
      delivered by, and (assuming the due authorization, execution and delivery
      thereof by the other parties thereto) will be a valid and binding
      agreement of, Acquisition (and, after the Merger, the Company),
      enforceable in accordance with its terms, except as to rights to
      indemnification and contribution thereunder may be limited by applicable
      law and, except as the enforcement thereof may be limited by bankruptcy,
      insolvency, reorganization, moratorium or other similar laws relating to
      or affecting the rights and remedies of creditors or by general equitable
      principles. Pursuant to the Registration Rights Agreement, Acquisition
      (and, after the Merger, the Company) will agree to file with the
      Commission, under the circumstances set forth therein, (i) a registration
      statement under the Securities Act relating to another series of debt
      securities of Acquisition (and, after the Merger, the Company) with terms
      substantially identical to the Notes (the "Exchange Notes") to be offered
      in exchange for the Notes (the "Exchange Offer") and (ii) to the extent
      required by the Registration Rights Agreement, a shelf registration
      statement pursuant to Rule 415 of the Securities Act relating to the
      resale by certain holders of the Notes, and in each case, to use its
      reasonable best efforts to cause such registration statements to be
      declared effective.

            (g) The DTC Letter of Representations. At the Closing Date, the DTC
      Letter of Representations will have been duly authorized, executed and
      delivered by, and (assuming the due authorization, execution and delivery
      thereof by the other parties thereto) will be a valid and binding
      agreement of, Acquisition (and, after the Merger, the Company),
      enforceable in accordance with its terms except as the enforcement thereof
      may be limited by bankruptcy, insolvency, reorganization, moratorium or
      other similar laws relating to or affecting the rights and remedies of
      creditors or by general equitable principles.

            (h) Authorization of the Securities and the Exchange Securities. (i)
      The Notes to be purchased by the Initial Purchasers from Acquisition are
      in the form contemplated by the Indenture, have been duly authorized for
      issuance and sale pursuant to this Agreement and the Indenture and, at the
      Closing Date, will have been duly executed by Acquisition and, when
      authenticated in the manner provided for in the Indenture and delivered
      against payment of the purchase price therefor, will constitute

                                       5
<PAGE>

      valid and binding agreements of Acquisition (and after the Merger, the
      Company), enforceable in accordance with their terms, except as the
      enforcement thereof may be limited by bankruptcy, insolvency,
      reorganization, moratorium or other similar laws relating to or affecting
      the rights and remedies of creditors or by general equitable principles
      and will be entitled to the benefits of the Indenture; (ii) prior to their
      issuance, the Exchange Notes will have been duly and validly authorized
      for issuance by the Company, and when issued and authenticated in
      accordance with the terms of the Indenture, the Supplemental Indenture,
      the Registration Rights Agreement and the Exchange Offer, will constitute
      valid and binding obligations of the Company, enforceable against the
      Company in accordance with their terms, except as the enforcement thereof
      may be limited by bankruptcy, insolvency, reorganization, moratorium, or
      similar laws relating to or affecting enforcement of the rights and
      remedies of creditors or by general principles of equity and will be
      entitled to the benefits of the Indenture; (iii) the Guarantees of the
      Notes will be in the form contemplated by the Supplemental Indenture, will
      have been, prior to their issuance, duly authorized for issuance and sale
      pursuant to this Agreement and the Supplemental Indenture and, at the time
      of the consummation of the Merger, will have been duly executed by each of
      the Guarantors and, when the Guarantees have been authenticated in the
      manner provided for in the Supplemental Indenture and delivered, will
      constitute valid and binding agreements of the Guarantors, enforceable in
      accordance with their terms, except as the enforcement thereof may be
      limited by bankruptcy, insolvency, reorganization, moratorium or other
      similar laws relating to or affecting the rights and remedies of creditors
      or by general equitable principles and will be entitled to the benefits of
      the Indenture; and (iv) prior to their issuance, the Guarantees of the
      Exchange Notes will be in the form contemplated by the Supplemental
      Indenture and will have been duly and validly authorized for issuance and
      sale pursuant to the Supplemental Indenture and, at the time of the
      consummation of the Merger, when issued and authenticated in accordance
      with the terms of the Indenture and the Supplemental Indenture, will
      constitute valid and binding agreements of the Guarantors, enforceable in
      accordance with their terms, except as the enforcement thereof may be
      limited by bankruptcy, insolvency, reorganization, moratorium or other
      similar laws relating to or affecting the rights and remedies of creditors
      or by general equitable principles and will be entitled to the benefits of
      the Indenture and the Supplemental Indenture.

            (i) Authorization of the Indenture. The Indenture has been duly
      authorized by Acquisition and, at the Closing Date, will have been duly
      executed and delivered by Acquisition and (assuming due authorization,
      execution and delivery by other parties thereto) will constitute a valid
      and binding agreement of Acquisition (and, after the Merger, the Company),
      enforceable against Acquisition (and, after the Merger, the Company) in
      accordance with its terms, except as the enforcement thereof may be
      limited by bankruptcy, insolvency, reorganization, moratorium or other
      similar laws relating to or affecting the rights and remedies of creditors
      or by general equitable principles.

            (j) Authorization of the Supplemental Indenture. Prior to the
      consummation of the Merger, the Supplemental Indenture will be duly
      authorized by the Company and the Guarantors and, upon consummation of the
      Merger, will have been duly executed and delivered by the Company and the
      Guarantors and (assuming due authorization, execution and delivery by
      other parties thereto) will constitute a valid and binding agreement of
      the Company and the Guarantors, enforceable against the Company and the
      Guarantors in accordance with its terms, except as the enforcement thereof
      may be limited by bankruptcy, insolvency, reorganization, moratorium or
      other similar laws relating to or affecting the rights and remedies of
      creditors or by general equitable principles.

            (k) Authorization of the Pledge Agreement. The Pledge Agreement has
      been duly authorized by Acquisition and, at the Closing Date, will have
      been duly executed

                                       6
<PAGE>

      and delivered by Acquisition and (assuming due authorization, execution
      and delivery by other parties thereto) will constitute a valid and binding
      agreement of Acquisition (and, after the Merger, the Company), enforceable
      against Acquisition (and, after the Merger, the Company) in accordance
      with its terms, except as the enforcement thereof may be limited by
      bankruptcy, insolvency, reorganization, moratorium or other similar laws
      relating to or affecting the rights and remedies of creditors or by
      general equitable principles.

            (l) Security Interest. As of the Closing Date, all actions necessary
      to perfect and protect the security interest in the Collateral (as defined
      in the Pledge Agreement) created under the Pledge Agreement have been duly
      made or taken and will be in full force and effect, and the Pledge
      Agreement creates in favor of the Trustee and the holders of the Notes,
      together with such actions, a perfected first priority security interest
      in the Collateral, enforceable as against all creditors of Acquisition
      (and any persons purporting to purchase any of the Collateral from
      Acquisition).

            (m) Descriptions in the Offering Memorandum. The Notes, the
      Guarantees of the Notes, the Indenture and the Pledge Agreement conforms,
      or will conform, in all material respects to the respective statements
      relating thereto contained in the Offering Memorandum. The Exchange
      Securities and the Guarantees of the Exchange Securities will conform in
      all material respects to the respective statements relating thereto
      contained in the Offering Memorandum and the Registration Statement at the
      time such Registration Statement becomes effective.

            (n) No Material Adverse Change. Except as otherwise disclosed in the
      Offering Memorandum, subsequent to the respective dates as of which
      information is given in the Offering Memorandum: (i) there has been no
      material adverse change or any development that could reasonably be
      expected to result in a material adverse change, in the condition,
      financial or otherwise, or in the earnings, business, operations or
      prospects, of Acquisition or the Company and its subsidiaries considered
      as one entity; (ii) any development that could result in a material delay
      of the consummation of the Merger or result in the termination of the
      Merger Agreement (any such change or development referred to in clauses
      (i) and (ii) above is called a "Material Adverse Change"); (iii)
      Acquisition and the Company and its subsidiaries considered as one entity
      have not incurred any material liability or obligation, indirect, direct
      or contingent, not in the ordinary course of business nor entered into any
      material transaction or agreement not in the ordinary course of business,
      except in connection with the Merger and related transactions; and (iv)
      there has been no dividend or distribution of any kind declared, paid or
      made by Acquisition, the Company or any of its subsidiaries on any class
      of capital stock (except for dividends paid by a subsidiary of the Company
      to the Company or to another subsidiary of the Company) or repurchase or
      redemption by Acquisition, the Company or any of its subsidiaries of any
      class of capital stock.

            (o) Independent Accountants. Grant Thornton LLP (the "Independent
      Accountants"), who have expressed their opinion with respect to the
      financial statements (which term as used in this Agreement includes the
      related notes thereto) included in the

                                       7
<PAGE>

      Offering Memorandum are independent public or certified public accountants
      with respect to the Company within the meaning of Regulation S-X under the
      Exchange Act.

            (p) Preparation of the Financial Statements. The consolidated
      financial statements of the Company, together with the related notes,
      included in the Offering Memorandum present fairly the consolidated
      financial position of the Company and its subsidiaries as of and at the
      dates indicated and the results of their operations and cash flows for the
      periods specified. The financial statements included in the Offering
      Memorandum comply as to form with the applicable requirements of the
      Securities Act. Such financial statements have been prepared in conformity
      with generally accepted accounting principles as applied in the United
      States applied on a consistent basis throughout the periods involved,
      except as may be expressly stated in the related notes thereto. The
      financial data with respect to the Company and its subsidiaries set forth
      in the Offering Memorandum under the captions "Offering Memorandum
      Summary--Summary Historical and Condensed Consolidated Pro Forma Financial
      Data," "Unaudited Pro Forma Condensed Consolidated Financial Statements"
      and "Selected Historical Financial Data" fairly present the historical
      financial information set forth therein on a basis consistent with that of
      the audited and unaudited financial statements contained in the Offering
      Memorandum. The unaudited pro forma financial data of the Company and its
      subsidiaries, and the related notes thereto included in the Offering
      Memorandum present fairly the information contained therein, have been
      prepared in accordance with the Commission's rules and guidelines with
      respect to pro forma financial statements and have been properly presented
      on the bases described therein, and the assumptions used in the
      preparation thereof are believed to be reasonable and the adjustments used
      therein are appropriate to give effect to the transactions and
      circumstances referred to therein.

            (q) Incorporation and Good Standing of Acquisition and the Company
      and its Subsidiaries. Each of Acquisition, the Company and the
      subsidiaries of the Company has been duly organized and is validly
      existing as a corporation, limited partnership or cooperative, as the case
      may be, in good standing under the laws of the jurisdiction of its
      organization and has the power and authority to own, lease and operate its
      properties and to conduct its business as described in the Offering
      Memorandum and to enter into and/or perform its obligations, as the case
      may be, under each of this Agreement, the Indenture, the Registration
      Rights Agreement, the DTC Letter of Representations, the Pledge Agreement,
      the Securities and the Exchange Securities to which it is a party. Each of
      Acquisition, the Company and each of its subsidiaries is duly qualified as
      a foreign corporation, limited partnership or cooperative, as the case may
      be, to transact business and is in good standing in each jurisdiction in
      which such qualification is required, whether by reason of the ownership
      or leasing of property or the conduct of business, except for such
      jurisdictions where the failure to so qualify or to be in good standing
      would not, individually or in the aggregate, result in a Material Adverse
      Change.

            (r) Capitalization and Other Capital Stock Matters. At December 31,
      2000, on a consolidated basis, after giving pro forma effect to (i) the
      issuance and sale of the Securities pursuant hereto, (ii) the consummation
      of the Merger, the funding of the senior credit facility to be entered
      into by the Company upon consummation of the Merger (the

                                       8
<PAGE>

      "Senior Credit Facility"), the sale of units of M-Foods Investors, LLC and
      the repayment of certain of the existing debt of the Company, as described
      in the Offering Memorandum and (iii) the application of the proceeds from
      the issuance and sale of the Securities and the funding of the Senior
      Credit Facility, in the manner described under the caption "Use of
      Proceeds" in the Offering Memorandum, the Company would have an authorized
      and outstanding capitalization as set forth in the Offering Memorandum
      under the caption "Capitalization" under the heading "Pro Forma." All of
      the outstanding shares of capital stock of Acquisition and the Company
      have been, and in the case of the Company after consummation of the Merger
      will continue to be, duly authorized and validly issued, are fully paid
      and nonassessable. None of the outstanding shares of capital stock of
      Acquisition were, or in the case of the Company after the consummation of
      the Merger will be, issued in violation of any preemptive rights, rights
      of first refusal or other similar rights to subscribe for or purchase
      securities of Acquisition or the Company, as the case may be. There are no
      authorized or outstanding options, warrants, preemptive rights, rights of
      first refusal or other rights to purchase, or equity or debt securities
      convertible into or exchangeable or exercisable for, any capital stock of
      Acquisition or the Company or any of the subsidiaries of the Company,
      other than those described in the Offering Memorandum. The description of
      the Company's stock option, stock bonus, stock purchase and other stock
      plans or arrangements, and the options or other rights granted thereunder,
      set forth in the Offering Memorandum accurately and fairly describes such
      plans, arrangements, options and rights. As of the date hereof, all of the
      issued and outstanding capital stock of Acquisition has been duly
      authorized and validly issued, is fully paid and nonassessable and is
      owned directly by M-Foods Holdings, Inc., free and clear of any security
      interest, mortgage, pledge, lien, encumbrance or claim and, following the
      Merger, except as described in the Offering Memorandum, all of the issued
      and outstanding capital stock of the Company will have been duly
      authorized and validly issued, fully paid and nonassessable and will be
      owned directly by M-Foods Holdings, Inc., free and clear of any security
      interest, mortgage, pledge, lien, encumbrance or claim. In addition, all
      of the issued and outstanding capital stock of each subsidiary, except as
      described in the Offering Memorandum, has been duly authorized and validly
      issued, is fully paid and nonassessable and is owned by the Company,
      directly or through subsidiaries, free and clear of any security interest,
      mortgage, pledge, lien, encumbrance or claim. The only domestic
      subsidiaries of the Company are those subsidiaries listed in Schedule D
      hereto.

            (s) Non-Contravention of Instruments; No Further Authorizations or
      Approvals Required. None of Acquisition, the Company or any of its
      subsidiaries is in violation of its charter or by-laws or is in default
      (or, with the giving of notice or lapse of time, would be in default)
      ("Default") under any indenture, mortgage, loan or credit agreement, note,
      contract, franchise, lease, license or other instrument to which
      Acquisition, the Company or any of its subsidiaries is a party or by which
      it or any of them may be bound or to which any of the property or assets
      of Acquisition, the Company or any of its subsidiaries is subject (each,
      an "Instrument"), except for such Defaults as would not, individually or
      in the aggregate, result in a Material Adverse Change or except for such
      defaults that have been waived in writing. The execution, delivery and
      performance by Acquisition and the Company of its obligations under this
      Agreement, Acquisition's execution and delivery of, and the performance of
      Acquisition

                                       9
<PAGE>

      (and, after the Merger, the Company and the Guarantors) of, the
      Registration Rights Agreement, the DTC Letter of Representations, the
      Indenture, the Supplemental Indenture and the Pledge Agreement to which it
      is a party, and the issuance and delivery of the Securities or the
      Exchange Securities, and consummation of the transactions contemplated
      hereby and thereby and by the Offering Memorandum and Acquisition and the
      Company's execution, delivery and performance of the Merger Agreement and
      related agreements and the consummation of the transactions contemplated
      hereby and thereby (i) will not result in any violation of the provisions
      of the charter or by-laws of Acquisition or the Company or any of its
      subsidiaries, (ii) will not conflict with or constitute a breach of, or
      Default or a Debt Repayment Triggering Event (as defined below) under, or
      result in the creation or imposition of any lien, charge or encumbrance
      upon any property or assets of Acquisition or the Company or any of its
      subsidiaries pursuant to, or require the consent of any other party to,
      any Instrument, except for such conflicts, breaches, Defaults, Debt
      Repayment Triggering Events, liens, charges or encumbrances as would not,
      individually or in the aggregate, result in a Material Adverse Change or
      Defaults that may arise under the Company's 7.58% senior notes due 2009
      (the "7.58% Notes"), and (iii) will not result in any violation of any
      law, administrative regulation or administrative or court decree
      applicable to Acquisition or the Company or any of its subsidiaries except
      for such violations that would not, individually or in the aggregate,
      result in a Material Adverse Change. No consent, approval, authorization
      or other order of, or registration or filing with, any court or other
      governmental or regulatory authority or agency, is required for
      Acquisition's or the Company's or each Guarantor's execution, delivery and
      performance of this Agreement, the Registration Rights Agreement, the DTC
      Letter of Representations, the Indenture, the Supplemental Indenture or
      the Pledge Agreement, to which it is a party, or the issuance and delivery
      of the Securities or the Exchange Securities, or consummation of the
      transactions contemplated hereby and thereby and by the Offering
      Memorandum, except such as will be obtained by Acquisition, the Company or
      the Guarantors and are in full force and effect under the Securities Act,
      the Trust Indenture Act and such as may be required under state securities
      laws or the blue sky laws of any jurisdiction in connection with the
      purchase and distribution of the Securities by the Initial Purchasers in
      the manner contemplated herein and in the Offering Memorandum and in
      connection with Acquisition's (and after the Merger, the Company's)
      obligations under the Registration Rights Agreement. As used herein, a
      "Debt Repayment Triggering Event" means any event or condition which
      gives, or with the giving of notice or lapse of time would give, the
      holder of any note, debenture or other evidence of indebtedness (or any
      person acting on such holder's behalf) the right to require the
      repurchase, redemption or repayment of all or a portion of such
      indebtedness by Acquisition or the Company and any of its subsidiaries.

            (t) No Material Actions or Proceedings. Except as otherwise
      disclosed in the Offering Memorandum, there are no legal or governmental
      actions, suits or proceedings pending or, to the best of the knowledge of
      Acquisition and the Company, threatened (i) against or affecting
      Acquisition or the Company or any of the Company's subsidiaries, (ii)
      which has as the subject thereof any property owned or leased by, the
      Company or any of its subsidiaries, where in any such case (A) there is a
      reasonable possibility that such action, suit or proceeding might be
      determined adversely to Acquisition or the

                                       10
<PAGE>

      Company or such subsidiary and (B) any such action, suit or proceeding, if
      so determined adversely, would reasonably be expected to result in a
      Material Adverse Change or adversely affect the consummation of the Merger
      and related transactions or the transactions contemplated by this
      Agreement.

            (u) Intellectual Property Rights. The Company and its subsidiaries
      own, possess or license sufficient trademarks, trade names, patent rights,
      copyrights, licenses, approvals, trade secrets and other similar rights
      (collectively, "Intellectual Property Rights") reasonably necessary to
      conduct their businesses as now conducted; and the expected expiration of
      any of such Intellectual Property Rights would not result in a Material
      Adverse Change. Neither the Company nor any of its subsidiaries has
      received any notice of infringement or conflict with asserted Intellectual
      Property Rights of others, which infringement or conflict, if the subject
      of an unfavorable decision, ruling or filing would reasonably be expected
      to result in a Material Adverse Change and, except as otherwise disclosed
      in the Offering Memorandum, neither the Company nor any of its
      subsidiaries is in default under the terms of any license or similar
      agreement related to any Intellectual Property Rights necessary to conduct
      their business as now conducted or contemplated.

            (v) All Necessary Permits, Etc. The Company and each of its
      subsidiaries possess such valid and current certificates, authorizations
      or permits issued by the appropriate municipal, state, federal or foreign
      regulatory agencies or bodies necessary to conduct their respective
      businesses as now conducted, and neither the Company nor any subsidiary
      has received any notice of proceedings relating to the revocation or
      modification of, or non-compliance with, any such license, certificate,
      authorization or permit which, singly or in the aggregate, if the subject
      of an unfavorable decision, ruling or finding, could reasonably be
      expected to result in a Material Adverse Change.

            (w) Title to Properties. Except as otherwise disclosed in the
      Offering Memorandum, the Company and each of its subsidiaries has good and
      marketable title to all their properties and assets reflected as owned in
      the financial statements referred to in Section 1(p) above (or elsewhere
      in the Offering Memorandum), in each case free and clear of any security
      interests, mortgages, liens, encumbrances, equities, claims and other
      defects, except such as do not materially and adversely affect the value
      of such property and do not materially interfere with the use made or
      proposed to be made of such property by the Company and its subsidiaries
      taken as a whole. Any real property, improvements, equipment and personal
      property held under lease by the Company or any of its subsidiaries are
      held under valid and enforceable leases, with such exceptions as are not
      material or do not materially interfere with the use made or proposed to
      be made of such real property, improvements, equipment or personal
      property by the Company or such subsidiary. Acquisition, as of the date of
      this Agreement, owns no property or assets.

            (x) Material Agreements. The agreements, contracts or instruments
      listed in Schedule C attached hereto are the only material agreements,
      contracts or instruments binding upon Acquisition and/or the Company and
      its subsidiaries, or will be binding upon the Company or its subsidiaries
      after the consummation of the Merger, that are

                                       11
<PAGE>

      material to the operation of the business of Acquisition and/or the
      Company and its subsidiaries, taken as a whole.

            (y) Tax Law Compliance. The Company and its subsidiaries have filed
      all federal, state and foreign income and franchise tax returns required
      to be filed and have paid all taxes shown on such returns required to be
      paid by any of them which are due and payable and, if due and payable, any
      related or similar assessment, fine or penalty levied against any of them.
      The Company and each Guarantor has made adequate charges, accruals and
      reserves in the applicable financial statements referred to in Section
      1(p) above in respect of all federal, state and foreign income and
      franchise taxes for all periods as to which the tax liability of the
      Company or any of its subsidiaries has not been finally determined, except
      where such failure would not reasonably be expected to result in a
      Material Adverse Change.

            (z) Company Not an "Investment Company". Acquisition and the Company
      have been advised of the rules and requirements under the Investment
      Company Act of 1940, as amended (the "Investment Company Act").
      Acquisition (and after the Merger, the Company) is not, nor after receipt
      of payment for the Securities and the application of the proceeds as
      described in the Offering Memorandum under "Use of Proceeds" will it be,
      an "investment company" within the meaning of Investment Company Act and
      will conduct its business in a manner so that it will not become subject
      to the Investment Company Act.

            (aa) Insurance. Each of the Company and its subsidiaries are, and at
      the Closing Date will be, insured by recognized, financially sound
      institutions with policies in such amounts and with such deductibles and
      covering such risks as are generally deemed adequate and customary for
      their businesses including, but not limited to, policies covering real and
      personal property owned or leased by the Company and its subsidiaries
      against theft, damage, destruction, acts of vandalism and earthquakes. The
      Company has no reason to believe that it or any subsidiary will not be
      able (i) to renew its existing insurance coverage as and when such
      policies expire or (ii) to obtain comparable coverage from similar
      institutions as may be necessary or appropriate to conduct its business as
      now conducted and at a cost that would not result in a Material Adverse
      Change. To the best of the Company's knowledge, after due inquiry, neither
      the Company nor any subsidiary has been denied any insurance coverage
      which it has sought or for which it has applied and there are no claims by
      the Company or any of its subsidiaries under any current insurance policy
      as to which any insurance company or institution is denying, or will deny,
      liability or coverage or defending under a reservation of rights clause.

            (bb) No Price Stabilization or Manipulation. None of Acquisition,
      the Company, the Guarantors or any of their respective affiliates has
      taken and will take, directly or indirectly, any action designed to or
      that might be reasonably expected to cause or result in stabilization or
      manipulation of the price of any security of the Company to facilitate the
      sale or resale of the Securities.

                                       12
<PAGE>

            (cc) Solvency. The Company and each Guarantor is, and, after giving
      effect to the sale of the Notes, the Merger, the funding of the Senior
      Credit Facility and the application of the proceeds from the sale of the
      Notes and the funding of the Senior Credit Facility, as described in the
      Offering Memorandum, will be, Solvent. As used herein, the term "Solvent"
      means, with respect to the Company and each Guarantor on a particular
      date, that on such date (i) the fair market value of the assets of the
      Company or such Guarantor is greater than the total amount of liabilities
      (including contingent liabilities) of the Company or such Guarantor, (ii)
      the present fair salable value of the assets of the Company or such
      Guarantor is greater than the amount that will be required to pay the
      probable liabilities of the Company or such Guarantor on its debts as they
      become absolute and matured, (iii) the Company or such Guarantor is able
      to realize upon its assets and pay its debts and other liabilities,
      including contingent obligations, as they mature and (iv) the Company or
      such Guarantor does not have unreasonably small capital.

            (dd) No Unlawful Contributions or Other Payments. Neither the
      Company nor any of its subsidiaries nor, to the best of the Company's or
      any Guarantor's knowledge, any employee or agent of the Company or any
      subsidiary, has made any contribution or other payment to any official of,
      or candidate for, any federal, state or foreign office in violation of any
      law or of the character necessary to be disclosed in the Offering
      Memorandum in order to make the statements therein not misleading.

            (ee) Company's Accounting System. The Company maintains a system of
      accounting controls sufficient to provide reasonable assurances that (i)
      transactions are executed in accordance with management's general or
      specific authorization; (ii) transactions are recorded as necessary to
      permit preparation of financial statements in conformity with generally
      accepted accounting principles as applied in the United States and to
      maintain accountability for assets; (iii) access to material assets is
      permitted only in accordance with management's general or specific
      authorization; and (iv) the recorded accountability for assets is compared
      with existing assets at reasonable intervals and appropriate action is
      taken with respect to any differences.

            (ff) Compliance with Environmental Laws. Except as otherwise
      disclosed in the Offering Memorandum or as would not, individually or in
      the aggregate, result in a Material Adverse Change (i) neither the Company
      nor any of its subsidiaries, to the best of the Company's knowledge after
      due inquiry, is in violation of any federal, state, local or foreign law
      or regulation relating to pollution or protection of human health or the
      environment (including, without limitation, ambient air, surface water,
      groundwater, land surface or subsurface strata) or wildlife, including
      without limitation, laws and regulations relating to emissions,
      discharges, releases or threatened releases of chemicals, pollutants,
      contaminants, wastes, toxic substances, hazardous substances, petroleum
      and petroleum products (collectively, "Materials of Environmental
      Concern"), or otherwise relating to the manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling of
      Materials of Environmental Concern (collectively, "Environmental Laws"),
      which violation includes, but is not limited to, noncompliance with any
      permits or other governmental authorizations required for the operation of
      the business of the Company or its subsidiaries under applicable
      Environmental Laws, or

                                       13
<PAGE>

      noncompliance with the terms and conditions thereof, nor has the Company
      or any of its subsidiaries received any written communication, whether
      from a governmental authority, citizens group, employee or otherwise, that
      alleges that the Company or any of its subsidiaries is in violation of any
      Environmental Law; (ii) there is, to the best of the Company's knowledge
      after due inquiry, no claim, action or cause of action filed with a court
      or governmental authority, no investigation with respect to which the
      Company or any Guarantor has received written notice, and no written
      notice by any person or entity alleging potential liability for
      investigatory costs, cleanup costs, governmental responses costs, natural
      resources damages, property damages, personal injuries, attorneys' fees or
      penalties arising out of, based on or resulting from the presence, or
      release into the environment, of any Material of Environmental Concern at
      any location owned, leased or operated by the Company or any of its
      subsidiaries, now or in the past (collectively, "Environmental Claims"),
      pending or, to the best of the Company's or any Guarantor's knowledge,
      threatened against the Company or any of its subsidiaries or any person or
      entity whose liability for any Environmental Claim the Company or any of
      its subsidiaries has retained or assumed either contractually or by
      operation of law; and (iii) to the best of the Company's or any
      Guarantor's knowledge, there are no past or present actions, activities,
      circumstances, conditions, events or incidents, including, without
      limitation, the release, emission, discharge, presence or disposal of any
      Material of Environmental Concern, that reasonably could result in a
      violation of any Environmental Law or form the basis of a potential
      Environmental Claim against the Company or any of its subsidiaries or
      against any person or entity whose liability for any Environmental Claim
      the Company or any of its subsidiaries has retained or assumed either
      contractually or by operation of law.

            (gg) ERISA Compliance. The Company and its subsidiaries and any
      "employee benefit plan" (as defined under the Employee Retirement Income
      Security Act of 1974, as amended, and the regulations and published
      interpretations thereunder (collectively, "ERISA")) established or
      maintained by the Company, its subsidiaries or their "ERISA Affiliates"
      (as defined below) are in compliance in all respects with ERISA or, if not
      in compliance, would not reasonably be expected to result in a Material
      Adverse Change. "ERISA Affiliate" means, with respect to the Company or a
      subsidiary, any member of any group of organizations described in Sections
      414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as amended,
      and the regulations and published interpretations thereunder (the "Code")
      of which the Company or such subsidiary is a member. No "reportable event"
      (as defined under ERISA) has occurred or is reasonably expected to occur
      with respect to any "employee benefit plan" established or maintained by
      the Company, its subsidiaries or any of their ERISA Affiliates. No
      "employee benefit plan" established or maintained by the Company, its
      subsidiaries or any of their ERISA Affiliates, if such "employee benefit
      plan" were terminated, would have any "amount of unfunded benefit
      liabilities" (as defined under ERISA). Neither the Company, its
      subsidiaries nor any of their ERISA Affiliates has incurred or reasonably
      expects to incur any liability under (i) Title IV of ERISA with respect to
      termination of, or withdrawal from, any "employee benefit plan" or (ii)
      Sections 412, 4971, 4975 or 4980B of the Code. Each "employee benefit
      plan" established or maintained by the Company, its subsidiaries or any of
      their ERISA Affiliates that is intended to be qualified under

                                       14
<PAGE>

      Section 401(a) of the Code is so qualified and nothing has occurred,
      whether by action or failure to act, which would cause the loss of such
      qualification.

            (hh) Regulation S Compliance. Acquisition, the Company, the
      Guarantors and their respective affiliates and all authorized persons
      acting on their behalf (other than the Initial Purchasers, as to whom
      Acquisition, the Company and the Guarantors make no representation) have
      complied with and will comply with the offering restrictions requirements
      of Regulation S in connection with the offering of the Securities outside
      the United States and, in connection therewith, the Offering Memorandum
      will contain the disclosure required by Rule 902(h).

            (ii) Taxes; Fees. There are no stamp or other issuance or transfer
      taxes or duties or other similar fees or charges required to be paid in
      connection with the execution and delivery of this Agreement or the
      issuance or sale by Acquisition of the Securities.

            (jj) No Labor Disputes. No material labor dispute with the employees
      of the Company or any of its subsidiaries exists or, to the knowledge of
      the Company, is imminent; and the Company is not aware of any existing,
      threatened or imminent labor disturbance by the employees of any of its
      principal customers, suppliers, manufacturers or contractors that could
      have a material adverse effect on the Company or its subsidiaries, taken
      as a whole.

            (kk) Merger. The Merger Agreement has been duly authorized, executed
      and delivered by, and (subject to its adoption by the shareholders of the
      Company) is a valid and binding agreement of Acquisition and the Company
      enforceable against Acquisition and the Company in accordance with its
      terms, except as the enforcement thereof may be limited by bankruptcy,
      insolvency, reorganization, moratorium or other similar laws relating to
      or affecting the rights and remedies of creditors or by general equitable
      principles; and Acquisition and the Company are not aware of any fact
      which makes the consummation of the Merger unlikely.

            (ll) Senior Credit Facility. Acquisition and the Company are not
      aware of any fact which will prevent the Company, on the date the Merger
      is consummated, to borrow funds under the proposed Senior Credit Facility,
      as described in the Offering Memorandum, that are sufficient, together
      with the proceeds from the other financings as described in the Offering
      Memorandum, including the issuance of the Notes, to consummate the Merger.

            (mm) Repayment of Existing Debt. Acquisition and the Company are not
      aware of any fact that will prevent it, on the date the Merger is
      consummated, to repay the existing debt of the Company (other than a
      30-day notice period requirement, for which the Company is seeking a
      waiver from the holders thereof, in connection with a redemption of the
      7.58% Notes), in the manner contemplated in the Offering Memorandum, with
      proceeds from the issuance and sale of the Securities or from the funding
      of the Senior Credit Facility.

                                       15
<PAGE>

            (nn) No Operations. Acquisition has no subsidiaries and has
      conducted no business prior to the date hereof other than in connection
      with the transactions contemplated by this Agreement, the Offering
      Memorandum and the Merger Agreement.

            Any certificate signed by an officer of Acquisition or the Company
and delivered to the Initial Purchasers or to counsel for the Initial Purchasers
shall be deemed to be a representation and warranty by Acquisition or the
Company to each Initial Purchaser as to the matters set forth therein.

            Section 2. Purchase, Sale and Delivery of the Securities.

            (a) The Securities. Acquisition agrees to issue and sell to the
      Initial Purchasers, severally and not jointly, all of the Securities on
      the basis of the representations, warranties and agreements, and upon the
      terms herein set forth. On the basis of the representations, warranties
      and agreements herein contained, and upon the terms but subject to the
      conditions herein set forth, the Initial Purchasers agree, severally and
      not jointly, to purchase from Acquisition the respective principal amount
      of Notes as set forth on Schedule B, opposite such Initial Purchaser's
      name payable on the Closing Date.

            (b) The Closing Date. Delivery of certificates for the Securities in
      definitive form to be purchased by the Initial Purchasers and payment
      therefor shall be made at the offices of Shearman & Sterling, 599
      Lexington Avenue, New York, New York 10022-6069 (or such other place as
      may be agreed to by Acquisition and the Initial Purchasers) at 9:00 a.m.
      New York City time, on March 27, 2001, or such other time and date as the
      Initial Purchasers shall designate by notice to Acquisition (the time and
      date of such closing are called the "Closing Date"). Acquisition hereby
      acknowledges that circumstances under which the Initial Purchasers may
      provide notice to postpone the Closing Date as originally scheduled
      include, but are in no way limited to, any determination by Acquisition or
      the Initial Purchasers to recirculate to investors copies of an amended or
      supplemented Offering Memorandum or a delay as contemplated by the
      provisions of Section 16 hereof.

            (c) Delivery of the Notes. Acquisition shall deliver, or cause to be
      delivered, to Banc of America Securities LLC, for the account of the
      Initial Purchasers, certificates for the Notes at the Closing Date against
      the irrevocable release of a wire transfer of immediately available funds
      for the amount of the purchase price therefore, of 100% of the aggregate
      principal amount of the Notes issued by Acquisition plus interest, if any,
      from March 27, 2001, which will be immediately deposited in the account
      established under the Pledge Agreement. Acquisition and, after the
      consummation of the Merger and release of the Collateral to Acquisition,
      the Company jointly and severally agree to pay, on the date of the
      consummation of the Merger, the fees and commissions of the Initial
      Purchasers, in immediately available funds, equal to 3% of the aggregate
      principal amount of Notes issued by Acquisition. The certificates for the
      Notes shall be in such denominations and registered in the name of the
      Depository or its nominee, pursuant to the DTC Letter of Representations,
      and shall be made available for inspection on the business day preceding
      the Closing Date at a location in New York City, as the Initial

                                       16
<PAGE>

      Purchasers may designate. Time shall be of the essence, and delivery at
      the time and place specified in this Agreement is a further condition to
      the obligations of the Initial Purchasers.

            (d) Delivery of Offering Memorandum to the Initial Purchasers. Not
      later than 12:00 p.m. on the second business day following the date of
      this Agreement, Acquisition shall deliver or cause to be delivered copies
      of the Offering Memorandum in such quantities and at such places as the
      Initial Purchasers shall reasonably request.

            (e) Initial Purchasers as Qualified Institutional Buyer. Each
      Initial Purchaser represents and warrants to, and agrees with, Acquisition
      that (i) it is a "qualified institutional buyer" within the meaning of
      Rule 144A (a "Qualified Institutional Buyer"), and (ii) with respect to
      those Securities sold in reliance on Regulation S, (A) has not engaged and
      will not engage in any direct selling efforts within the meaning of
      Regulation S and (B) has complied and will comply with the offering
      restrictions requirement of Regulations S.

            Section 3. Additional Covenants. Acquisition and the Company further
jointly and severally covenants and agrees with each Initial Purchaser as
follows:

            (a) Initial Purchasers' Review of Proposed Amendments and
      Supplements. Prior to amending or supplementing the Offering Memorandum,
      Acquisition or the Company shall furnish to the Initial Purchasers for
      review a copy of each such proposed amendment or supplement, and
      Acquisition or the Company shall not use any such proposed amendment or
      supplement to which any Initial Purchaser reasonably objects with the
      advice of its independent counsel.

            (b) Amendments and Supplements to the Offering Memorandum and Other
      Securities Act Matters. If, prior to the completion of the placement of
      the Securities by the Initial Purchasers with the Subsequent Purchasers,
      any event shall occur or condition exist as a result of which it is
      necessary to amend or supplement the Offering Memorandum in order to make
      the statements therein, in the light of the circumstances when the
      Offering Memorandum is delivered to a Subsequent Purchaser, not
      misleading, or if in the opinion of the Initial Purchasers or counsel for
      the Initial Purchasers it is otherwise necessary to amend or supplement
      the Offering Memorandum to comply with law, Acquisition or the Company
      agrees to promptly prepare (subject to Section 3(a) hereof), and furnish
      at its own expense to the Initial Purchasers, amendments or supplements to
      the Offering Memorandum so that the statements in the Offering Memorandum
      as so amended or supplemented will not, in the light of the circumstances
      when the Offering Memorandum is delivered to a Subsequent Purchaser, be
      misleading or so that the Offering Memorandum, as amended or supplemented,
      will comply with law.

            Acquisition and the Company hereby expressly acknowledge that the
      indemnification and contribution provisions of Sections 8 and 9 hereof are
      specifically applicable and relate to each offering memorandum,
      registration statement, prospectus, amendment or supplement referred to in
      this Section 3(b).

                                       17
<PAGE>

            (c) Copies of the Offering Memorandum. Acquisition agrees to furnish
      the Initial Purchasers, without charge, as many copies of the Offering
      Memorandum and any amendments and supplements thereto as they shall have
      reasonably requested prior to or at the time of the original printing of
      the Offering Memorandum or any amendment or supplement thereto.

            (d) Blue Sky Compliance. Acquisition and the Company shall cooperate
      with the Initial Purchasers and counsel for the Initial Purchasers to
      qualify or register the Securities for sale under (or obtain exemptions
      from the application of) the Blue Sky or state securities laws of those
      jurisdictions designated by the Initial Purchasers, shall comply with such
      laws and shall continue such qualifications, registrations and exemptions
      in effect so long as required for the distribution of the Securities.
      Acquisition and the Company shall not be required to qualify as a foreign
      corporation or to take any action that would subject it to general service
      of process in any such jurisdiction where it is not presently qualified or
      where it would be subject to taxation as a foreign corporation.
      Acquisition and the Company will advise the Initial Purchasers promptly of
      the suspension of the qualification or registration of (or any such
      exemption relating to) the Securities for offering, sale or trading in any
      jurisdiction or any initiation or threat of any proceeding for any such
      purpose, and in the event of the issuance of any order suspending such
      qualification, registration or exemption, Acquisition and the Company
      shall use its reasonable best efforts to obtain the withdrawal thereof at
      the earliest possible moment.

            (e) Use of Proceeds. Acquisition (and, after the Merger, the
      Company) shall in connection with the Merger, use the net proceeds from
      the sale of the Securities sold by it and the funding of the Senior Credit
      Facility in the manner described under the caption "Use of Proceeds" in
      the Offering Memorandum.

            (f) Depositary. Acquisition (and, after the Merger, the Company)
      will cooperate with the Initial Purchasers and use its reasonable best
      efforts to permit the Securities to be eligible for clearance and
      settlement through the facilities of the Depositary.

            (g) Additional Issuer Information. At any time the Company is not
      subject to section 13 or 15 of the Exchange Act, the Company covenants
      that it will furnish, at its expense, upon request, to registered holders
      of Securities within the time periods specified in the Exchange Act (i)
      all quarterly and annual financial information that would be required to
      be contained in a filing with the Commission on Forms 10-Q and 10-K if the
      Company were required to file such Forms, including a "Management
      Discussion and Analysis of Financial Condition and Results of Operations"
      and, with respect to the annual information only, a report on the annual
      financial statements by the Company's certified independent accounts; and
      (ii) all current reports that would be required to be filed with the
      Commission on Form 8-K if the Company were required to file such reports.
      In addition, following the date Acquisition and, after the Merger, the
      Company is required to consummate the exchange offer contemplated by the
      Registration Rights Agreement, whether or not required by the Commission,
      Acquisition and, after the Merger, the Company will file a copy of all of
      the information and reports referred to in

                                       18
<PAGE>

      clauses (i) and (ii) above with the Commission for public availability
      within the time periods specified in the Commission's rules and
      regulations (unless the Commission will not accept such a filing) and make
      such information available to securities analysts and prospective
      purchasers of Securities upon request. In addition, Acquisition and, after
      the Merger, the Company and Guarantors have agreed that, for so long as
      Securities (but not the Exchange Securities) remain outstanding, they will
      furnish to holders and beneficial owners of Securities and to securities
      analysts and prospective purchasers of Securities, upon their request, the
      information required to be delivered pursuant to Rule 144A(d)(4) under the
      Securities Act.

            (h) Future Agreement Not to Offer or Sell Additional Securities.
      Acquisition, during the period of 180 days following the date of the
      Offering Memorandum, and the Company, for the period which is the shorter
      of 180 days from the date of the Offering Memorandum the termination of
      the Merger Agreement, will not, without the prior written consent of Banc
      of America Securities LLC (which consent may not be unreasonably withheld
      by such Initial Purchaser), directly or indirectly, sell, offer, contract
      or grant any option to sell, pledge, transfer or establish an open "put
      equivalent position" within the meaning of Rule 16a-1(h) under the
      Exchange Act, or otherwise dispose of or transfer, or announce the
      offering of, or file any registration statement under the Securities Act
      in respect of, any debt securities of the Company or securities
      exchangeable for or convertible into debt securities of the Company (other
      than to register the Exchange Securities).

            (i) Future Reports to the Initial Purchasers. For so long as any
      Securities or Exchange Securities remain outstanding, the Company will
      furnish to the Initial Purchasers (i) within 90 days after the end of each
      fiscal year, copies of the Annual Report of the Company containing the
      balance sheet of the Company as of the close of such fiscal year and
      statements of income, stockholders' equity and cash flows for the year
      then ended and the opinion thereon of the Company's independent public or
      certified public accountants and including such information and financial
      statements as would be required if the Issuer were filing such Annual
      Report with the Commission pursuant to the Exchange Act; (ii) as soon as
      practicable after the filing thereof, copies of each proxy statement,
      Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report
      on Form 8-K or other report filed by the Company with the Commission; and
      (iii) as soon as available, copies of any report or communication of the
      Company mailed generally to holders of its capital stock or debt
      securities (including the holders of the Securities).

            (j) No Integration. Acquisition and, prior to the termination, if
      any, of the Merger Agreement, the Company each agree that it will not and
      will cause its affiliates not to, make any offer or sale of securities of
      any class if, as a result of the doctrine of "integration" referred to in
      Rule 502 under the Securities Act, such offer or sale would render invalid
      (for the purpose of (i) the sale of the Securities by Acquisition to the
      Initial Purchasers, (ii) the resale of the Securities by the Initial
      Purchasers to Subsequent Purchasers or (iii) the resale of the Securities
      by such Subsequent Purchasers to others) the exemption from the
      registration requirements of the Securities Act provided by Section 4(2)
      thereof or by Rule 144A or by Regulation S thereunder or otherwise.

                                       19
<PAGE>

            (k) Legended Securities. Each certificate for a Note will bear the
      legend substantially in the form contained in "Notice to Investors" in the
      Offering Memorandum for the time period and upon the other terms stated in
      the Offering Memorandum.

            (l) PORTAL. Acquisition will use its reasonable best efforts to
      cause such Notes when issued to be eligible for the National Association
      of Securities Dealers, Inc. PORTAL market (the "PORTAL market").

            (m) Rating of Securities. Acquisition shall take all reasonable
      action necessary to enable Standard & Poor's Ratings Services, a division
      of McGraw Hill, Inc. ("S&P"), and Moody's Investor Services, Inc.
      ("Moody's") to provide their respective credit ratings to the Securities.

            (n) Collateral. Acquisition shall direct the deposit of the proceeds
      of the issuance and sale of the Notes with the Collateral Agent in
      accordance with the terms of the Pledge Agreement on the Closing Date.

            Banc of America Securities LLC, on behalf of the Initial Purchasers,
may, in their sole discretion, waive in writing the performance by Acquisition
or the Company of any one or more of the foregoing covenants or extend the time
for their performance.

            Section 4. Payment of Expenses. Acquisition (and, after the Merger,
the Company) agrees to pay all costs, fees and expenses incurred in connection
with the performance of its obligations hereunder and in connection with the
transactions contemplated hereby, including without limitation (i) all expenses
that have been agreed to be paid by Vestar in connection with this Offering, as
described in the Amended and Restated Fee Letter (the "Fee Letter"), dated
February 15, 2001, entered into among Vestar and the Initial Purchasers and
certain of their affiliates, (ii) all necessary issue, transfer and other stamp
taxes in connection with the issuance and sale of the Securities to the Initial
Purchasers, (iii) all fees and expenses of Acquisition's, the Company's and the
Guarantors' counsel, independent public or certified public accountants and
other advisors, (iv) all costs and expenses incurred in connection with the
preparation, printing, filing, shipping and distribution of each Preliminary
Offering Memorandum and the Offering Memorandum (including financial
statements), and all amendments and supplements thereto, (v) all filing fees,
reasonable attorneys' fees and expenses incurred by Acquisition, the Company,
the Guarantors or the Initial Purchasers in connection with qualifying or
registering (or obtaining exemptions from the qualification or registration of)
all or any part of the Securities for offer and sale under the Blue Sky laws
and, if requested by an Initial Purchaser, preparing and printing a "Blue Sky
Survey" or memorandum, and any supplements thereto, advising such Initial
Purchaser of such qualifications, registrations and exemptions, (vi) the fees
and expenses of the Trustee, including the fees and disbursements of counsel for
the Trustee in connection with the Indenture, the Securities and the Exchange
Securities, (vii) fees and expenses of the Collateral Agent, including fees and
disbursements of counsel for the Collateral Agent in connection with the Pledge
Agreement, (viii) any fees payable in connection with the rating of the
Securities or the Exchange Securities with the ratings agencies and the initial
listing of the Securities with the PORTAL market, (ix) all fees and expenses
(including reasonable fees and expenses of counsel) of Acquisition in connection
with approval of the Securities by the Depositary for "book-entry" transfer, and
(x) the

                                       20
<PAGE>

performance by Acquisition and the Company of their respective other obligations
under this Agreement. Except as provided in this Section 4, Section 6, Section 8
and Section 9 hereof, the Initial Purchasers shall pay their own expenses,
including the fees and disbursements of their counsel. The provisions of this
Section 4 shall not supercede or otherwise affect any agreement between
Acquisition and the Company regarding the allocation of such expenses between
themselves.

            Section 5. Conditions of the Obligations of the Initial Purchasers.
The obligations of the Initial Purchasers to purchase and pay for the Securities
as provided herein on the Closing Date shall be subject to the accuracy of the
representations and warranties on the part of Acquisition and the Company set
forth in Section 1 hereof as of the date hereof and as of the Closing Date as
though then made and to the timely performance by Acquisition and the Company of
its covenants and other obligations hereunder, and to each of the following
additional conditions:

            (a) Accountants' Comfort Letter. On the date hereof the Initial
      Purchasers shall have received from the Independent Accountants, a letter
      dated the date hereof addressed to the Initial Purchasers, in form and
      substance satisfactory to the Initial Purchasers, containing statements
      and information of the type ordinarily included in accountant's "comfort
      letters" to the Initial Purchasers, delivered according to Statement of
      Auditing Standards Nos. 71, 72 and 76 (or any successor bulletins), with
      respect to the audited and unaudited financial statements and certain
      financial information contained in the Offering Memorandum.

            (b) No Material Adverse Change or Ratings Agency Change. For the
      period from and after the date of this Agreement and prior to the Closing
      Date:

                  (i) in the judgment of the Initial Purchasers there shall not
            have occurred any Material Adverse Change the effect of which, in
            the sole judgment of the Initial Purchasers, makes it impracticable
            to proceed with the Offering; and

                  (ii) there shall not have occurred any downgrading, nor shall
            any notice have been given of any intended or potential downgrading
            or of any review for a possible change that does not indicate the
            direction of the possible change, in the rating accorded any
            securities of Acquisition or the Company or any of its subsidiaries
            by any "nationally recognized statistical rating organization" as
            such term is defined for purposes of Rule 436(g)(2) under the
            Securities Act.

            (c) Opinion of Counsel for Acquisition. On the Closing Date, the
      Initial Purchasers shall have received the opinion of Kirkland & Ellis,
      counsel for Acquisition, dated as of such Closing Date, the form of which
      is attached as Exhibit C.

            (d) Opinion of Counsel for the Company. On the Closing Date, the
      Initial Purchasers shall have received the opinion of Kaplan, Strangis and
      Kaplan, P.A., counsel for the Company, dated as of such Closing Date, the
      form of which is attached as Exhibit D.

                                       21
<PAGE>

            (e) Opinion of Counsel for the Initial Purchasers. On the Closing
      Date, the Initial Purchasers shall have received the favorable opinion of
      Shearman & Sterling, counsel for the Initial Purchasers, dated as of such
      Closing Date, with respect to such matters as may be requested by the
      Initial Purchasers and are customary in this type of financing.

            (f) Officers' Certificate. On the Closing Date, the Initial
      Purchasers shall have received written certificates from Acquisition and
      the Company executed by the Chairman of the Board, Chief Executive Officer
      or President of Acquisition and the Company, as the case may be, and the
      Chief Financial Officer or Chief Accounting Officer of Acquisition and the
      Company, as the case may be, dated as of the Closing Date, to the effect
      set forth in subsection (b)(ii) and (iii) of this Section 5, and each
      further to the effect that:

                  (i) for the period from and after the date of this Agreement
            and prior to the Closing Date, to their knowledge, after due
            inquiry, there has not occurred any Material Adverse Change;

                  (ii) the representations, warranties and covenants of
            Acquisition and the Company, as the case may be, and set forth in
            Section 1 of this Agreement are true and correct with the same force
            and effect as though expressly made on and as of the Closing Date;
            and

                  (iii) Acquisition and the Company have complied in all
            material respects with all the agreements and satisfied all the
            conditions on its part to be performed or satisfied at or prior to
            the Closing Date.

            (g) Bring-down Comfort Letters. On the Closing Date, the Initial
      Purchasers shall have received from the Independent Accountants, a letter
      dated such date, in form and substance satisfactory to the Initial
      Purchasers, to the effect that they reaffirm the statements made in the
      letter furnished by them pursuant to subsection (a) of this Section 5,
      except that the specified date referred to therein for the carrying out of
      procedures shall be no more than three business days prior to the Closing
      Date.

            (h) PORTAL Listing. At the Closing Date, the Notes shall have been
      designated for trading on the PORTAL market.

            (i) Registration Rights Agreement. Acquisition shall have entered
      into the Registration Rights Agreement and the Initial Purchasers shall
      have received executed counterparts thereof.

            (j) Deposit of Collateral. Acquisition shall have deposited, or
      shall have directed the deposit of, the proceeds of the offering with the
      Collateral Agent, as contemplated in the Pledge Agreement (it being
      understood that this condition shall be deemed satisfied to the extent it
      occurs simultaneously with the purchase and payment of the Securities).

                                       22
<PAGE>

            (k) Depositary. At the Closing Date, the Notes will be eligible for
      clearance and settlement through the facilities of the Depositary.

            (l) Pledge Agreement. Acquisition shall have entered into the Pledge
      Agreement and the Initial Purchasers shall have received executed
      counterparts thereof.

            (m) Agreement with Vestar and the Collateral Agent. Vestar shall
      have entered into an agreement with the Collateral Agent, as contemplated
      and attached as an exhibit to the Pledge Agreement, that provides that, if
      the Merger is not consummated prior to May 31, 2001, Vestar will deposit
      with the Collateral Agents such funds as required in the Pledge Agreement
      to redeem the Notes in accordance with their terms.

            (n) Additional Documents. On or before the Closing Date, the Initial
      Purchasers and counsel for the Initial Purchasers shall have received such
      information, documents and opinions as they may reasonably require for the
      purposes of enabling them to pass upon the issuance and sale of the
      Securities as contemplated herein, or in order to evidence the accuracy of
      any of the representations and warranties, or the satisfaction of any of
      the conditions or agreements, herein contained.

            If any condition specified in this Section 5 is not satisfied when
and as required to be satisfied, this Agreement may be terminated by the Initial
Purchasers by notice to the Company at any time on or prior to the Closing Date,
which termination shall be without liability on the part of any party to any
other party, except that Section 4, Section 6, Section 8 and Section 9 shall at
all times be effective and shall survive such termination.

            Section 6. Reimbursement of Initial Purchasers' Expenses. If this
Agreement is terminated by the Initial Purchasers pursuant to Section 5, or if
the sale to the Initial Purchasers of the Securities on the Closing Date is not
consummated because of any refusal, inability or failure on the part of
Acquisition or the Company to perform any agreement herein or to comply with any
provision hereof, Acquisition agrees to reimburse the Initial Purchasers upon
demand for all reasonable out-of-pocket expenses that shall have been incurred
by the Initial Purchasers in connection with the proposed purchase and the
offering and sale of the Securities, including but not limited to fees and
disbursements of counsel, printing expenses, travel expenses, postage, facsimile
and telephone charges, as has been agreed to be paid by Vestar, as described in
the Fee Letter.

            Section 7. Offer, Sale and Resale Procedures. The Initial
Purchasers, on the one hand, and Acquisition and the Company, on the other hand,
hereby establish and agree to observe the following procedures in connection
with the offer and sale of the Securities:

            (a) Offers and Sales Only to Qualified Institutional Buyers and
      Non-U.S. Persons. Offers and sales of the Securities will be made only by
      the Initial Purchasers or Affiliates thereof qualified to do so in the
      jurisdictions in which such offers or sales are made. Each such offer or
      sale shall only be made (A) to persons whom the offeror or seller
      reasonably believes to be qualified institutional buyers (as defined in
      Rule 144A under the Securities Act) or (B) non-U.S. persons outside the
      United States to whom the offeror or seller reasonably believes offers and
      sales of the Securities may be made in

                                       23
<PAGE>

      reliance upon Regulation S under the Securities Act, upon the terms and
      conditions set forth in Annex I hereto, which Annex I is hereby expressly
      made a part hereof.

            (b) No General Solicitation. The Securities will be offered by
      approaching prospective Subsequent Purchasers on an individual basis. No
      general solicitation or general advertising (within the meaning of Rule
      502(c) under the Securities Act) will be used in the United States in
      connection with the offering of the Securities.

            (c) Restrictions on Transfer. Upon original issuance by Acquisition,
      and until such time as the same is no longer required under the applicable
      requirements of the Securities Act, the Notes (and all securities issued
      in exchange therefor or in substitution thereof, other than the Exchange
      Securities) shall bear a legend substantially in the following form:

            "THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER
      THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD,
      ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
      ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR
      NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE
      HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
      OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER
      THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
      COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE OR ANY
      PREDECESSOR OF THIS NOTE (THE "RESALE RESTRICTION TERMINATION DATE") ONLY
      (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
      NOTES AND THE GUARANTEES ENDORSED THEREON ARE ELIGIBLE FOR RESALE PURSUANT
      TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT
      REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
      RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
      QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
      BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO
      NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING
      OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER
      AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
      ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH
      OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE
      40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S
      UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE
      RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF
      COUNSEL, CERTIFICATION AND/OR OTHER

                                       24
<PAGE>

      INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii) IN EACH OF THE
      FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM
      APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE
      TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER
      THE RESALE RESTRICTION TERMINATION DATE."

Following the sale of the Securities by the Initial Purchasers to Subsequent
Purchasers pursuant to the terms hereof, the Initial Purchasers shall not be
liable or responsible to Acquisition or the Company for any losses, damages or
liabilities suffered or incurred by Acquisition or the Company, including any
losses, damages or liabilities under the Securities Act, arising from or
relating to any resale or transfer of any Security.

            Section 8. Indemnification.

            (a) Indemnification of the Initial Purchasers. Acquisition and, from
      and after the Merger, the Company jointly and severally agrees to
      indemnify and hold harmless each Initial Purchaser, its directors,
      officers and employees, and each person, if any, who controls any Initial
      Purchaser within the meaning of Section 15 of the Securities Act and
      Section 20 of the Exchange Act against any loss, claim, damage, liability
      or expense, as incurred, to which such Initial Purchaser or such
      controlling person may become subject, under the Securities Act, the
      Exchange Act or other federal or state statutory law or regulation, or at
      common law or otherwise (including in settlement of any litigation, if
      such settlement is effected with the written consent of Acquisition and/or
      the Company), insofar as such loss, claim, damage, liability or expense
      (or actions in respect thereof as contemplated below) arises out of or is
      based (i) upon any untrue statement or alleged untrue statement of a
      material fact contained in the Preliminary Offering Memorandum or the
      Offering Memorandum (or any amendment or supplement thereto), or the
      omission or alleged omission therefrom of a material fact necessary in
      order to make the statements therein, in the light of the circumstances
      under which they were made, not misleading; or (ii) in whole or in part
      upon any inaccuracy in the representations and warranties of Acquisition
      or the Company contained herein; or (iii) in whole or in part upon any
      failure of Acquisition or the Company to perform its obligations hereunder
      or under law; or (iv) any act or failure to act or any alleged act or
      failure to act by any Initial Purchaser in connection with, or relating in
      any manner to, the offering contemplated hereby, and which is included as
      part of or referred to in any loss, claim, damage, liability or action
      arising out of or based upon any matter covered by clause (i) above to the
      extent such expenses are not covered in items (i) through (iv) (subject to
      the limitations set forth below), provided that neither Acquisition or the
      Company shall be liable under this clause (iv) to the extent that a court
      of competent jurisdiction shall have determined by a final judgment that
      such loss, claim, damage, liability or action resulted directly from any
      such acts or failures to act undertaken or omitted to be taken by such
      Initial Purchaser through its gross negligence or willful misconduct; and
      to reimburse each Initial Purchaser and each such controlling person for
      any and all expenses (including the fees and disbursements of counsel
      chosen by the Initial Purchasers) as such expenses are reasonably incurred
      by such Initial Purchaser or such controlling person in connection with
      investigating, defending, settling, compromising or paying any such loss,
      claim,

                                       25
<PAGE>

      damage, liability, expense or action to the extent such expenses are not
      covered in items (i) through (ii) above (subject to the limitations set
      forth below); provided, however, that the foregoing indemnity agreement
      shall not apply to any loss, claim, damage, liability or expense to the
      extent, but only to the extent, arising out of or based upon any untrue
      statement or alleged untrue statement or omission or alleged omission made
      in reliance upon and in conformity with written information furnished to
      Acquisition or the Company by the Initial Purchasers expressly for use in
      any Preliminary Offering Memorandum or the Offering Memorandum (or any
      amendment or supplement thereto). The indemnity agreement set forth in
      this Section 8(a) shall be in addition to any liabilities that Acquisition
      or, from and after the Merger, the Company may otherwise have.

            (b) Indemnification of Acquisition, the Company and their Directors
      and Officers. Each Initial Purchaser agrees to indemnify and hold harmless
      Acquisition and each of its directors and each person, if any, who
      controls Acquisition within the meaning of the Securities Act or the
      Exchange Act and the Company and each of its directors and each person, if
      any, who controls the Company within the meaning of the Securities Act or
      the Exchange Act, against any loss, claim, damage, liability or expense,
      as incurred, to which Acquisition or the Company or any such director, or
      controlling person may become subject, under the Securities Act, the
      Exchange Act, or other federal or state statutory law or regulation, or at
      common law or otherwise (including in settlement of any litigation, if
      such settlement is effected with the written consent of the Initial
      Purchasers), insofar as such loss, claim, damage, liability or expense (or
      actions in respect thereof as contemplated below) arises out of or is
      based upon any untrue or alleged untrue statement of a material fact
      contained in any Preliminary Offering Memorandum or the Offering
      Memorandum (or any amendment or supplement thereto), or arises out of or
      is based upon the omission or alleged omission to state therein a material
      fact required to be stated therein or necessary to make the statements
      therein not misleading, in each case to the extent, but only to the
      extent, that such untrue statement or alleged untrue statement or omission
      or alleged omission was made in any Preliminary Offering Memorandum or the
      Offering Memorandum (or any amendment or supplement thereto), in reliance
      upon and in conformity with written information furnished to Acquisition
      by the Initial Purchasers expressly for use therein; and to reimburse
      Acquisition or the Company, or any such director or controlling person for
      any legal and other expenses reasonably incurred by Acquisition or the
      Company, or any such director or controlling person in connection with
      investigating, defending, settling, compromising or paying any such loss,
      claim, damage, liability, expense or action. Acquisition and the Company
      hereby acknowledge that the only information that the Initial Purchasers
      have furnished to Acquisition expressly for use in any Preliminary
      Offering Memorandum or the Offering Memorandum (or any amendment or
      supplement thereto) are the statements set forth (A) in the ninth
      paragraph on introductory page ii of the Offering Memorandum and (B) the
      first sentence in the third paragraph, the first three sentences in the
      fourth paragraph, the third sentence of the sixth paragraph and the eighth
      paragraph under the caption "Plan of Distribution" in the Offering
      Memorandum; and the Initial Purchasers confirm that such statements are
      correct. The indemnity agreement set forth in this Section 8(b) shall be
      in addition to any liabilities that each Initial Purchaser may otherwise
      have.

                                       26
<PAGE>

            (c) Notifications and Other Indemnification Procedures. Promptly
      after receipt by an indemnified party under this Section 8 of notice of
      the commencement of any action, such indemnified party will, if a claim in
      respect thereof is to be made against an indemnifying party under this
      Section 8, notify the indemnifying party in writing of the commencement
      thereof, but the omission so to notify the indemnifying party will not
      relieve it from any liability which it may have to any indemnified party
      for contribution or otherwise than under the indemnity agreement contained
      in this Section 8 or to the extent it is not prejudiced as a proximate
      result of such failure. In case any such action is brought against any
      indemnified party and such indemnified party seeks or intends to seek
      indemnity from an indemnifying party, the indemnifying party will be
      entitled to participate in and, to the extent that it shall elect, jointly
      with all other indemnifying parties similarly notified, by written notice
      delivered to the indemnified party promptly after receiving the aforesaid
      notice from such indemnified party, to assume the defense thereof with
      counsel reasonably satisfactory to such indemnified party; provided,
      however, if the defendants in any such action include both the indemnified
      party and the indemnifying party and the indemnified party shall have
      reasonably concluded that a conflict may arise between the positions of
      the indemnifying party and the indemnified party in conducting the defense
      of any such action or that there may be legal defenses available to it
      and/or other indemnified parties which are different from or additional to
      those available to the indemnifying party, the indemnified party or
      parties shall have the right to select separate counsel to assume such
      legal defenses and to otherwise participate in the defense of such action
      on behalf of such indemnified party or parties. Upon receipt of notice
      from the indemnifying party to such indemnified party of such indemnifying
      party's election so to assume the defense of such action and approval by
      the indemnified party of counsel, the indemnifying party will not be
      liable to such indemnified party under this Section 8 for any legal or
      other expenses subsequently incurred by such indemnified party in
      connection with the defense thereof unless (i) the indemnified party shall
      have employed separate counsel in accordance with the proviso to the next
      preceding sentence (it being understood, however, that the indemnifying
      party shall not be liable for the expenses of more than one separate
      counsel (together with local counsel), approved by the indemnifying party
      (the Initial Purchasers in the case of Section 8(b) and Section 9),
      representing the indemnified parties who are parties to such action) or
      (ii) the indemnifying party shall not have employed counsel satisfactory
      to the indemnified party to represent the indemnified party within a
      reasonable time after notice of commencement of the action, in each of
      which cases the fees and expenses of counsel shall be at the expense of
      the indemnifying party.

            (d) Settlements. The indemnifying party under this Section 8 shall
      not be liable for any settlement of any proceeding effected without its
      written consent (which shall not be unreasonably withheld), but if settled
      with such consent or if there be a final non-appealable judgment for the
      plaintiff, the indemnifying party agrees to indemnify the indemnified
      party against any loss, claim, damage, liability or expense by reason of
      such settlement or judgment. Notwithstanding the foregoing sentence, if at
      any time an indemnified party shall have requested an indemnifying party
      to reimburse the indemnified party for fees and expenses of counsel as
      contemplated by Section 8(c) hereof, the indemnifying party agrees that it
      shall be liable for any settlement of any proceeding effected without its
      written consent if (i) such settlement is entered into more than

                                       27
<PAGE>

      45 days after receipt by such indemnifying party of the aforesaid request,
      (ii) such indemnifying party shall have received notice of the final terms
      of such proposed settlement as soon as practicable prior to such
      settlement being entered into and (iii) such indemnifying party shall not
      have reimbursed the indemnified party in accordance with such request
      prior to the date of such settlement. No indemnifying party shall, without
      the prior written consent of the indemnified party, effect any settlement,
      compromise or consent to the entry of judgment in any pending or
      threatened action, suit or proceeding in respect of which any indemnified
      party is or could have been a party and indemnity was or could have been
      sought hereunder by such indemnified party, unless such settlement,
      compromise or consent includes an unconditional release of such
      indemnified party from all liability on claims that are the subject matter
      of such action, suit or proceeding.

            Section 9. Contribution. If the indemnification provided for in
Section 8 is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then each indemnifying party (in
the case of the Company, from and after the Merger) shall contribute to the
aggregate amount paid or payable by such indemnified party, as incurred, as a
result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative
benefits received by Acquisition and it affiliates or the Company and its
affiliates, on the one hand, and the Initial Purchasers, on the other hand, from
the offering of the Securities pursuant to this Agreement or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of Acquisition and
its affiliates or the Company and its affiliates, on the one hand, and the
Initial Purchasers, on the other hand, in connection with the statements or
omissions or inaccuracies in the representations and warranties herein which
resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative benefits received by
Acquisition and the Company, on the one hand, and the Initial Purchasers, on the
other hand, in connection with the offering of the Securities pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total
net proceeds from the offering of the Securities pursuant to this Agreement
(before deducting expenses) received by Acquisition and deposited with the
Collateral Agent, whether or not the Merger is completed and the total discount
received by the Initial Purchasers bear to the aggregate initial offering price
of the Securities. The relative fault of Acquisition and the Company, on the one
hand, and the Initial Purchasers, on the other hand, shall be determined by
reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material
fact or any such inaccurate or alleged inaccurate representation or warranty
relates to information supplied by Acquisition or the Company, on the one hand,
or the Initial Purchasers, on the other hand, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

            The amount paid or payable by a party as a result of the losses,
claims, damages, liabilities and expenses referred to above shall be deemed to
include, subject to the limitations set forth in Section 8(c), any legal or
other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim. The provisions set forth in
Section 8(c) with respect to notice of commencement of any action shall apply if
a claim for

                                       28
<PAGE>

contribution is to be made under this Section 9; provided, however, that no
additional notice shall be required with respect to any action for which notice
has been given under Section 8(c) for purposes of indemnification.

            Acquisition, the Company and the Initial Purchasers agree that it
would not be just and equitable if contribution pursuant to this Section 9 were
determined by pro rata allocation (even if the Initial Purchasers were treated
as one entity for such purpose) or by any other method of allocation which does
not take account of the equitable considerations referred to in this Section 9.

            Notwithstanding the provisions of this Section 9, the Initial
Purchasers shall not be required to contribute any amount in excess of the
discount received by the Initial Purchaser in connection with the Securities
distributed by them. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 9, each director, officer and
employee of the Initial Purchasers and each person, if any, who controls any of
the Initial Purchasers within the meaning of the Securities Act and the Exchange
Act shall have the same rights to contribution as the Initial Purchasers, and
each director of Acquisition or the Company, and each person, if any, who
controls Acquisition or the Company within the meaning of the Securities Act and
the Exchange Act shall have the same rights to contribution as Acquisition or
the Company.

            Section 10. Termination of this Agreement. Prior to the Closing
Date, this Agreement may be terminated by the Initial Purchasers by notice given
to Acquisition and the Company if at any time (i) trading or quotation in
securities generally on either the Nasdaq Stock Market or the New York Stock
Exchange shall have been suspended or limited, or minimum or maximum prices
shall have been generally established on any of such stock exchanges by the
Commission or the NASD; (ii) a general banking moratorium shall have been
declared by any of federal, Delaware or any other state authorities; (iii) there
shall have occurred any outbreak or escalation of national or international
hostilities or any crisis or calamity, or any change in the United States or
international financial markets, or any substantial change or development
involving a prospective substantial change in United States' or international
political, financial or economic conditions, as in the judgment of the Initial
Purchasers is material and adverse and makes it impracticable to market the
Securities in the manner and on the terms described in the Offering Memorandum
or to enforce contracts for the sale of securities; or (iv) in the judgment of
the Initial Purchasers there shall have occurred any Material Adverse Change the
effect of which, in the sole judgment of the Initial Purchasers, makes it
impracticable to proceed with the offering of the Notes. Any termination
pursuant to this Section 10 shall be without liability on the part of (a)
Acquisition or the Company to any Initial Purchaser, except that Acquisition and
the Company shall be obligated to reimburse the expenses of the Initial
Purchasers pursuant to Sections 4 and 6 hereof, (b) any Initial Purchaser to
Acquisition or the Company, or (c) of any party hereto to any other party except
that the provisions of Section 8, Section 9 and Section 18 shall at all times be
effective and shall survive such termination.

            Section 11. Representations and Indemnities to Survive Delivery. The
respective indemnities, agreements, representations, warranties and other
statements of Acquisition and the Company of their officers and of the Initial
Purchasers set forth in or made

                                       29
<PAGE>

pursuant to this Agreement will remain in full force and effect, regardless of
any investigation made by or on behalf of the Initial Purchasers, Acquisition or
the Company or any of its or their partners, officers or directors or any
controlling person, as the case may be, and will survive delivery of and payment
for the Securities sold hereunder and any termination of this Agreement.

            Section 12. Notices. All communications hereunder shall be in
writing and shall be mailed, hand delivered or telecopied and confirmed to the
parties hereto as follows:

If to the Initial Purchasers:

            Banc of America Securities LLC
            100 North Tryon Street
            7th Floor
            Charlotte, NC  28255
            Facsimile:  704-388-9941
            Attention:  James G. Rose, Jr.

with a copy to:

            Shearman & Sterling
            599 Lexington Avenue
            New York, NY  10022
            Facsimile:  212-848-7179
            Attention:  Rohan S. Weerasinghe

If to the Company:

            Michael Foods, Inc.
            Signal Bank Building
            Suite 324
            5353 Wayzata Boulevard
            Minneapolis, MN  55416
            Facsimile:  952-546-1500
            Attention:  Chief Financial Officer

and if to the Company prior to the Merger:

            Kaplan, Strangis and Kaplan, P.A.
            90 South Seventh Street
            Suite 5500
            Minneapolis, MN  55402
            Facsimile:  612-375-1143
            Attention:  James C. Melville

                                       30
<PAGE>

If to Acquisition:

            Michael Foods Acquisition Corp.
            c/o Vestar Capital Partners IV, L.P.
            1225 17th Street
            Suite 1660 Denver, CO 80202
            Facsimile: 303-292-6300
            Attention:  J. Christopher Henderson

and if to Acquisition or the Company following the Merger:

            Kirkland & Ellis
            200 East Randolph Drive
            Chicago, IL  60601
            Facsimile:  312-861-2200
            Attention:  Dennis M. Myers

            Any party hereto may change the address for receipt of
communications by giving written notice to the others.

            Section 13. Successors. This Agreement will inure to the benefit of
and be binding upon the parties hereto, including any substitute Initial
Purchasers pursuant to Section 16 hereof, and to the benefit of the employees,
officers and directors and controlling persons referred to in Section 8 and
Section 9, and in each case their respective successors, and no other person
will have any right or obligation hereunder. The term "successors" shall not
include any purchaser of the Securities as such from any of the Initial
Purchasers by reason of such purchase.

            Section 14. Partial Unenforceability. The invalidity or
unenforceability of any Section, paragraph or provision of this Agreement shall
not affect the validity or enforceability of any other Section, paragraph or
provision hereof. If any Section, paragraph or provision of this Agreement is
for any reason determined to be invalid or unenforceable, there shall be deemed
to be made such minor changes (and only such minor changes) as are necessary to
make it valid and enforceable.

            Section 15. Governing Law; Consent to Jurisdiction.

            (a) Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY
      AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE.

            (b) Consent to Jurisdiction. Any legal suit, action or proceeding
      arising out of or based upon this Agreement or the transactions
      contemplated hereby ("Related Proceedings") may be instituted in the
      federal courts of the United States of America located in the City and
      County of New York or the courts of the State of New York in each case
      located in the City and County of New York (collectively, the "Specified
      Courts"), and each party irrevocably submits to the non-exclusive
      jurisdiction (except for

                                       31
<PAGE>

      proceedings instituted in regard to the enforcement of a judgment of any
      such court (a "Related Judgment"), as to which such jurisdiction is
      non-exclusive) of such courts in any such suit, action or proceeding.
      Service of any process, summons, notice or document by mail to such
      party's address set forth above shall be effective service of process for
      any suit, action or other proceeding brought in any such court. The
      parties irrevocably and unconditionally waive any objection to the laying
      of venue of any suit, action or other proceeding in the Specified Courts
      and irrevocably and unconditionally waive and agree not to plead or claim
      in any such court that any such suit, action or other proceeding brought
      in any such court has been brought in an inconvenient forum.

            Section 16. Default of One or More of the Several Initial
Purchasers. If any one or more of the several Initial Purchasers shall fail or
refuse to purchase Notes that it or they have agreed to purchase hereunder on
the Closing Date, and the aggregate number of Notes that such defaulting Initial
Purchaser or Initial Purchasers agreed but failed or refused to purchase does
not exceed 10% of the aggregate number of the Notes to be purchased on such
date, the other Initial Purchasers shall be obligated, severally, in the
proportions that the number of Notes set forth opposite their respective names
on Schedule B bears to the aggregate number of Notes set forth opposite the
names of all such non-defaulting Initial Purchasers, or in such other
proportions as may be specified by the Initial Purchasers with the consent of
the non-defaulting Initial Purchasers, to purchase the Notes which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused
to purchase on such date. If any one or more of the Initial Purchasers shall
fail or refuse to purchase Notes and the aggregate number of Notes with respect
to which such default occurs exceeds 10% of the aggregate number of Notes to be
purchased on the Closing Date, and arrangements satisfactory to the Initial
Purchasers and Acquisition for the purchase of such Notes are not made within 48
hours after such default, this Agreement shall terminate without liability of
any party to any other party except that the provisions of Section 4, Section 8
and Section 9 shall at all times be effective and shall survive such
termination, but only as to such non-defaulting Initial Purchasers. In any such
case either the Initial Purchasers or Acquisition shall have the right to
postpone the Closing Date, as the case may be, but in no event for longer than
seven days in order that any changes to the Offering Memorandum or any other
documents or arrangements deemed necessary or desirable may be effected.

            As used in this Agreement, the term "Initial Purchaser" shall be
deemed to include any person substituted for a defaulting Initial Purchaser
under this Section 10. Any action taken under this Section 16 shall not relieve
any defaulting Initial Purchaser from liability in respect of any default of
such Initial Purchaser under this Agreement.

            Section 17. General Provisions. This Agreement constitutes the
entire agreement of the parties to this Agreement and supersedes all prior
written or oral and all contemporaneous oral agreements, understandings and
negotiations with respect to the subject matter hereof except the Amended and
Restated Commitment Letter, dated February 15, 2001, entered into among Vestar
and the Initial Purchasers and their affiliates, the description of the payment
of fees and expenses in connection with this Offering contained in the Fee
Letter and any agreement entered into between the Company and Acquisition
relating to the allocation of expenses of the Offering between themselves. This
Agreement may be executed in two or more counterparts, each one of which shall
be an original, with the same effect as if the signatures

                                       32
<PAGE>

thereto and hereto were upon the same instrument. This Agreement may not be
amended or modified unless in writing by all of the parties hereto, and no
condition herein (express or implied) may be waived unless waived in writing by
each party whom the condition is meant to benefit. The Table of Contents and the
section headings herein are for the convenience of the parties only and shall
not affect the construction or interpretation of this Agreement.

            Section 18. Liability of the Company Prior to the Merger.
Notwithstanding anything to the contrary contained herein, unless and until the
Merger is consummated, none of the Company and its subsidiaries shall have any
liability arising under or related to this Agreement or arising in connection
with or related to the Offering of the Notes, except for liabilities, if any, of
the Company in connection with a violation of the Section 3(h) or Section 3(j)
of this Agreement.

                                       33
<PAGE>

            If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to Acquisition and the Company the enclosed
copies hereof, whereupon this instrument, along with all counterparts hereof,
shall become a binding agreement in accordance with its terms.

                                            Very truly yours,

                                            MICHAEL FOODS ACQUISITION CORP.

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

                                            MICHAEL FOODS, INC.

                                            By:
                                                -------------------------------
                                                Name:
                                                Title:
<PAGE>

The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial
Purchasers as of the date first above written.

BANC OF AMERICA SECURITIES LLC

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

BEAR, STEARNS & CO. INC.

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

<PAGE>

                                                                      SCHEDULE A

                                   GUARANTORS

Guarantor                                          Jurisdiction of Organization
---------                                          ----------------------------

Farm Fresh Foods, Inc.                                       California

Farm Fresh Foods of Nevada, Inc.                             Nevada

Kohler Mix Specialties of CT, Inc.                           Connecticut

Michael Foods of Delaware, Inc.                              Delaware

Casa Trucking, Inc.                                          Minnesota

Crystal Farms Refrigerated Distribution Company              Minnesota

Kohler Mix Specialties, Inc.                                 Minnesota

Midwest Mix, Inc.                                            Minnesota

Minnesota Products, Inc.                                     Minnesota

Papetti's Hygrade Egg Products, Inc.                         Minnesota

Northern Star Co.                                            Minnesota

M.G. Waldbaum Company                                        Nebraska

Papetti Electroheating Corp.                                 New Jersey

WFC, Inc.                                                    Wisconsin

Wisco Farm Cooperative                                       Wisconsin

<PAGE>

                                                                      SCHEDULE B

                               INITIAL PURCHASERS

                                                        Aggregate Principal
                                                        Amount of Securities
                       Initial Purchasers                 to be Purchased
                       ------------------              ---------------------

Banc of America Securities LLC ....................... $   140,000,000
Bear, Stearns & Co. Inc. ............................. $    60,000,000
                                                       ---------------
Total                                                  $   200,000,000

<PAGE>

                                                                      SCHEDULE C

                               MATERIAL AGREEMENTS

1.    Egg Supplier Agreement between Papetti's of Iowa Food Products, Inc. and
      Sunbest/Papetti Farms dated October 19, 1993.

2.    Consolidated, Restated and Amended License Agreement dated June 9, 2000 by
      and between North Carolina State University and the Company.

3.    7.58% Senior Notes due February 26, 2009 issued under those certain Loan
      Agreements dated February 26, 1997 between the Company and various lenders
      named therein, including Metropolitan Life Insurance Company, as Agent,
      including all security, pledge and collateral agreements related thereto.

4.    Form of Credit Agreement, between the Company, as borrower, Holdings and
      the subsidiaries of the Company from time to time, as guarantors, the
      lenders from time to time and, Bank of America, N. A., as Agent.

5.    Composite Amended Agreement and Plan of Merger, dated as of December 21,
      2000, by and among Holdings, the Issuer and the Company.

6.    Lease Agreement, dated as of June 1, 1997, by and between Park National
      Bank Building Corporation and the Company, relating to the lease of office
      space located at 5353 Wayzata Boulevard, St. Louis Park, MN 55416.

7.    Lease, dated as of February 26, 1997, by and between the Company and A&A
      Urban Renewal, relating to the lease of a facility located at 100 Trumbull
      St., Elizabeth, NJ.

8.    Lease, dated as of February 26, 1997, by and between Michael Foods, Inc.
      (a Delaware coproration) and Papetti Holding Company, et al., relating to
      the lease of a facility located at 877-879 E. North Ave., Elizabeth, NJ.

9.    Lease, dated as of February 26, 1997, by and between Michael Foods, Inc.
      (a Delaware corporation) and Papetti Holding Company, relating to the
      lease of a facility located at 847-855 E. North Ave., Elizabeth, NJ.

10.   Lease, dated as of February 26, 1997, by and between Michael Foods, Inc.
      (a Delaware corporation) and Jersey Pride Urban Renewal, relating to the
      lease of a facility located at One Papetti Plaza., Elizabeth, NJ.

11.   Lease, dated as of January 15, 1993, by and between Midwest Mix, Inc. and
      Associated Milk Producters, Inc., relating to the lease of a facility
      located at 1101 Main Street, Sulphur Springs, TX.

<PAGE>

12.   Lease, dated as of April 30, 1999, by and between Kohler Mix Specialties
      of Connecticut, Inc. and H.P. Hood, Inc., relating to a lease of a
      facility located at 100 Milk Lane, Newington, CT.

13.   Lease, dated as of May 4, 1988, by and between Park Place OPCO, LLC and
      Crystal Farms Refrigerated Distribution Company, relating to an office
      facility located at 6465 Wayzata Blvd. St. Louis Park, MN.

14.   Lease Agreement, dated as of June 27, 2000, by and among Civic Center
      Properties, LLC and the Company, relating to a facility located at 3840 N.
      Civic Center Dr., North Las Vegas, NV.

15.   Letter Agreement, dated as of December 21, 2000, between the Issuer and
      Vestar Capital Partners IV, L.P.

16.   Letter Agreement, dated as of December 21, 2000, between the Issuer and
      Marathon Fund Limited Partnership IV.

17.   Form of Employment Agreement between the Company and Gregg A. Ostrander.

18.   Form of Employment Agreement between the Company and John D. Reedy.

19.   Form of Employment Agreement between the Company and James D. Clarkson.

20.   Form of Employment Agreement between the Company and Bill L. Goucher.

<PAGE>

                                                                      SCHEDULE D

                       SUBSIDIARIES OF MICHAEL FOODS, INC.

Subsidiary                                         Jurisdiction of Organization
----------                                         ----------------------------

Farm Fresh Foods, Inc.                                    California

Farm Fresh Foods of Nevada, Inc.                          Nevada

Kohler Mix Specialties of CT, Inc.                        Connecticut

Michael Foods of Delaware, Inc.                           Delaware

Casa Trucking, Inc.                                       Minnesota

Crystal Farms Refrigerated Distribution Company           Minnesota

Kohler Mix Specialties, Inc.                              Minnesota

Midwest Mix, Inc.                                         Minnesota

Minnesota Products, Inc.                                  Minnesota

Papetti's Hygrade Egg Products, Inc.                      Minnesota

Northern Star Co.                                         Minnesota

M.G. Waldbaum Company                                     Nebraska

Papetti Electroheating Corp.                              New Jersey

R&P Liquid Egg Technology, L.P.                           New Jersey

WFC, Inc.                                                 Wisconsin

Wisco Farm Cooperative                                    Wisconsin

<PAGE>

                                                                       EXHIBIT A

                      FORM OF REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                                                       EXHIBIT B

                            FORM OF PLEDGE AGREEMENT

<PAGE>

                                                                       EXHIBIT C

                   FORM OF OPINION OF COUNSEL FOR ACQUISITION

                                 March __, 2001

Banc of America Securities LLC
Bear, Stearns & Co. Inc.,
as Initial Purchasers
c/o Banc of America Securities LLC
9 West 57th Street, 47th Floor
New York, New York 10019

            Re:   $200,000,000 __% Senior Subordinated Notes due 2011

Ladies and Gentlemen:

      We are issuing this letter in our capacity as special counsel for Michael
Foods Acquisition Corp., a Minnesota corporation (the "Issuer") in response to
the requirement in Section 5(c) of the Purchase Agreement dated March 16, 2001
(the "Purchase Agreement") among the Issuer, Michael Foods, Inc., a Minnesota
corporation (the "Company"), and Banc of America Securities LLC and Bear,
Stearns & Co. Inc. (the "Initial Purchasers" and herein being called "you"). The
issuance and sale of the Notes by the Issuer is part of the financing that will
be used to consummate the acquisition of the Company in accordance with an
agreement and plan of merger dated as of December 21, 2000, and as amended on
March 6, 2001 (the "Merger Agreement"), among the Company, M-Foods Holdings,
Inc., a Delaware corporation ("Holdings"), and the Issuer. Pursuant to the terms
of the Merger Agreement, and subject to the conditions set forth therein, the
Issuer will merge with and into the Company (the "Merger") and the Company, as a
wholly owned subsidiary of Holdings, will continue as the surviving corporation
(the "Surviving Corporation"). Every term which is defined or given a special
meaning in the Purchase Agreement and which is not given a different meaning in
this letter has the same meaning whenever it is used in this letter as the
meaning it is given in the Purchase Agreement.

      In connection with the preparation of this letter, we have among other
things read:

      (a)   the Offering Memorandum of the Issuer, dated March __, 2001,
            covering the offering and sale of the Securities (the "Offering
            Memorandum");

      (b)   an executed original of the Purchase Agreement;
<PAGE>

      (c)   an executed original of the Indenture;

      (d)   specimen certificates of the Notes;

      (e)   an executed original of the Registration Rights Agreement;

      (f)   an executed original of the Pledge Agreement;

      (g)   the form of the Supplemental Indenture to be executed by the
            Surviving Corporation and the Subsidiaries (as defined below) upon
            consummation of the Merger;

      (h)   a certified copy of resolutions adopted by the Board of Directors of
            the Issuer on March 16, 2001;

      (i)   copies of all certificates and other documents delivered today at
            the closing of the purchase and sale of the Notes under the Purchase
            Agreement; and

      (j)   any executed original of the Merger Agreement and certified copies
            of resolutions adopted by the Board of Directors of the Issuer and
            Holdings on December 21, 2000 and March 6, 2001 in connection
            therewith.

      The term "Transaction Documents" is used in this letter to collectively
refer to the Purchase Agreement, the Indenture, the Notes, the Registration
Rights Agreement and the Pledge Agreement.

      Subject to the assumptions, qualifications and limitations which are
identified in this letter, we advise you that:

1.    The Issuer is a corporation existing and in good standing under the
      Minnesota Business Corporation Act (the "MBCA"). The Issuer is not
      qualified to do business as a foreign corporation in any state.

2.    All of the outstanding shares of capital stock of the Issuer have been
      duly authorized and validly issued, are fully paid and nonassessable. All
      the outstanding shares of capital stock of the Issuer are owned of record
      by Holdings and, after consummation of the Merger in accordance with the
      terms of the Merger Agreement, all the outstanding shares of capital stock
      of the Surviving Corporation will be owned of record by Holdings. The
      issuance and sale of Notes by the Issuer will not be subject to any
      pre-emptive rights under the articles of incorporation or by-laws of the
      Issuer or any agreement known to us to which the Issuer is a party.

3.    The Issuer has the power and authority to enter into and perform its
      obligations under the Transaction Documents.
<PAGE>

4.    The Purchase Agreement has been duly authorized, executed and delivered by
      the Issuer.

5.    The Indenture has been duly authorized, executed and delivered by the
      Issuer, is a valid and binding obligation of the Issuer, and is
      enforceable against the Issuer in accordance with its terms.

6.    The Registration Rights Agreement has been duly authorized, executed and
      delivered by the Issuer, is a valid and binding obligation of the Issuer,
      and is enforceable against the Issuer in accordance with its terms.

7.    The Pledge Agreement has been duly authorized, executed and delivered by
      the Issuer, is a valid and binding obligation of the Issuer, and is
      enforceable against the Issuer in accordance with its terms.

8.    The Notes have been duly authorized, executed and delivered by the Issuer
      and, when paid for by the Initial Purchasers in accordance with the terms
      of the Purchase Agreement (assuming the due authorization, execution and
      delivery of the Indenture by the Trustee and due authentication and
      delivery of the Notes by the Trustee in accordance with the Indenture),
      will constitute Notes under the terms of the Indenture, will constitute
      valid and binding obligations of the Issuer, and will be enforceable
      against the Issuer in accordance with their terms.

9.    The Board of Directors of the Issuer has adopted by requisite vote the
      resolutions necessary to authorize the execution, delivery and performance
      of the Exchange Notes. No approval by the stockholders of the Issuer is
      required.

10.   The execution and delivery of the Transaction Documents by the Issuer, the
      performance by the Issuer of its respective obligations thereunder, the
      consummation of the transactions contemplated thereby (including, without
      limitation, the Issuer's issuance and sale of the Notes to you in
      accordance with the terms of the Purchase Agreement and the application of
      the proceeds therefrom in accordance with the terms of the Pledge
      Agreement), the assumption by operation of law of the obligations of the
      Issuer under the Notes by the Surviving Corporation in connection with the
      Merger, the execution of the Supplemental Indenture by the Surviving
      Corporation and the Subsidiaries, and the issuance of the Guarantees by
      the Subsidiaries pursuant to the terms of the Supplemental Indenture do
      not and will not conflict with or constitute or result in a breach or
      default under (or an event which with notice or the passage of time or
      both would constitute a default under) any of, (i) the charter, bylaws or
      other organizational documents of the Issuer, the Company and the
      Subsidiaries, (ii) any statute or governmental rule or regulation which,
      in our experience, is normally applicable both to general business
      corporations that are not engaged in regulated business activities and to
      transactions of the type contemplated by the Offering Memorandum (but
      without our having made any special investigation as to other laws and
      provided that we express no opinion in this

<PAGE>

      paragraph with respect to (a) any laws, rules or regulations to which the
      Issuer or the Company may be subject as a result of the Initial
      Purchasers' legal or regulatory status or the involvement of the Initial
      Purchasers in such transactions, (b) any laws, rules or regulations
      relating to misrepresentations or fraud or (c) the Securities Act, the
      Exchange Act or the Trust Indenture Act) or (iii) the terms or provisions
      of any contract or form of contract set forth on Exhibit A attached hereto
      (other than item 3 thereof), except for, with respect to items (ii) and
      (iii) only, any such conflict, breach or default which would not,
      individually or in the aggregate, reasonably be expected to have a
      Material Adverse Change or to materially impair the ability of the Issuer
      or, after consummation of the Merger, the Surviving Corporation and the
      Subsidiaries to perform their respective obligations under the Transaction
      Documents. The Issuer and the Company have certified to us that Exhibit A
      represents all of their respective material contracts.

11.   To our actual knowledge, no consent, waiver, approval, authorization or
      order of any court or governmental authority is required in connection
      with the performance by the Issuer of obligations in connection with the
      offering, the issuance and sale by the Issuer of the Notes to the Initial
      Purchasers, the consummation by the Issuer of the other transactions
      contemplated by the Transaction Documents, the assumption by operation of
      law of the obligations of the Issuer under the Notes by the Surviving
      Corporation in connection with the Merger or the issuance of the
      Guarantees by the Subsidiaries pursuant to the terms of the Supplemental
      Indenture, except such as may be required under the Securities Act, the
      Exchange Act, the Trust Indenture Act and the securities or Blue Sky laws
      of the various states (and the rules and regulations thereunder), as to
      which we express no opinion in this paragraph.

12.   No registration under the Securities Act of the Notes is required in
      connection with: (i) the sale of the Notes to the Initial Purchasers in
      the manner contemplated by the Purchase Agreement and the Offering
      Memorandum; (ii) the initial resale of the Notes by the Initial Purchasers
      in accordance with Section 7 of the Purchase Agreement; (iii) assumption
      by operation of law of the obligations of the Issuer under the Notes by
      the Surviving Corporation in connection with the Merger; or (iv) the
      issuance of the Guarantees by the Subsidiaries pursuant to the terms of
      the Supplemental Indenture, and prior to the commencement of the Exchange
      Offer or the effectiveness of the Shelf Registration Statement (as defined
      in the Registration Rights Agreement), the Indenture is not required to be
      qualified under the Trust Indenture Act, in each case assuming (A) that
      the Subsequent Purchasers who buy such Notes in the initial resale thereof
      are qualified institutional buyers as defined in Rule 144A promulgated
      under the Securities Act, or persons other than U.S. persons in connection
      with offers made in reliance upon Regulation S under the Securities Act
      and (B) the compliance with the covenants set forth in Section 7 of the
      Purchase Agreement by the Initial Purchasers.

<PAGE>

13.   The information in the Offering Memorandum under the headings "United
      States Federal Tax Consequences," "Description of Notes" and "Notice to
      Investors" to the extent that such information summarizes laws,
      governmental rules or regulations or documents referred to therein is
      correct in all material respects.

14.   We have no knowledge about any legal or governmental proceeding that is
      pending or threatened against the Issuer, the Company or any of the
      Subsidiaries that has caused us to conclude that such proceeding would be
      required to be described by Item 103 of Regulation S-K under the
      Securities Act if the issuance of the Notes were being registered under
      the Securities Act but is not so described in the Offering Memorandum. 1.

15.   The Issuer is not, nor immediately after the sale of the Notes to the
      Initial Purchasers and application of the proceeds therefrom in accordance
      with the terms of the Pledge Agreement will be, an "investment company" as
      such term is defined in the Investment Company Act. The Company is not,
      nor immediately after the assumption by operation of law of the
      obligations of the Issuer under the Notes in connection with the Merger
      and the application of the net proceeds from the sale of the Notes as
      described in the Offering Memorandum under the caption "Use of Proceeds"
      will the Surviving Corporation be, an "investment company" as such term is
      defined in the Investment Company Act.

16.   To our actual knowledge, there are no contracts, agreements or
      understandings between the Company or the Issuer and any person granting
      such person the right to require the Company or the Issuer, as applicable,
      to include any securities with the Exchange Notes registered pursuant to
      the Exchange Registration Statement.

17.   None of the sale, issuance, execution or delivery of the Notes, the
      assumption by operation of law of the obligations of the Issuer under the
      Notes in connection with the Merger or the application of the proceeds
      therefrom in accordance with the terms of the Pledge Agreement and, upon
      consummation of the Merger, as described in the Offering Memorandum under
      the caption "Use of Proceeds," will contravene Regulation T (12 C.F.R.
      Part 220), Regulation U (12 C.F.R. Part 221) or Regulation X (12 C.F.R.
      Part 224) of the Board of Governors of the Federal Reserve System.

18.   The Merger Agreement has been duly authorized, executed and delivered by
      the Issuer and Holdings and approved and adopted by Holdings as to sole
      stockholder of the Issuer and (assuming the due authorization, execution
      and delivery by the Company) is enforceable against each in accordance
      with its terms. All of the obligations of the Issuer under the Transaction
      Documents will become obligations of the Surviving Corporation by
      operation of law upon consummation of the Merger pursuant to Section
      302A.641, Subd. 2 of the MBCA.

19.   The provisions of the Pledge Agreement are effective to create in favor of
      the Collateral Agent (as defined in the Pledge Agreement) as agent of and
      securities intermediary for the Trustee, for the benefit of the holders of
      the Notes, a valid security interest in that

<PAGE>

      portion of the Collateral (as defined in the Pledge Agreement) in which a
      security interest may be created under Article 9 of the Uniform Commercial
      Code of the State of New York (the "New York UCC") as security for the
      payment of the Obligations (as defined in the Pledge Agreement).

20.   The Collateral Agent will have a perfected security interest in the
      Pledged Financial Assets (as defined in the Pledge Agreement) and the
      Pledged Security Entitlements (as defined in the Pledge Agreement)
      (collectively, the "Pledged Investment Property") upon BNY Midwest Trust
      Company, as securities intermediary (the "Securities Intermediary") with
      respect to such Pledged Investment Property, receiving the certificates,
      if any, constituting Pledged Financial Assets and indicating by book-entry
      that the Pledged Financial Assets have been credited to the Collateral
      Account maintained with the Securities Intermediary by the Collateral
      Agent for the benefit of the Secured Parties (as defined in the Pledge
      Agreement), and the Securities Intermediary agreeing that it will comply
      with entitlement orders with respect to the Pledged Financial Assets
      originated by the Collateral Agent without further consent by the Issuer.
      Assuming that neither the Collateral Agent, the Securities Intermediary,
      nor any other Secured Party has notice of an adverse claim to such Pledged
      Investment Property or any Pledged Financial Asset and that the security
      interest of the Collateral Agent for the benefit of the Secured Parties in
      such Pledged Investment Property is perfected as described above, no
      action based on an adverse claim to such Pledged Investment Property or
      such Pledged Financial Assets may be asserted against the Collateral Agent
      or any other Secured Party.

                                   ----------

      The purpose of our professional engagement was not to establish factual
matters, and preparation of the Offering Memorandum involved many determinations
of a wholly or partially nonlegal character. We make no representation that we
have independently verified the accuracy, completeness or fairness of the
Offering Memorandum or that the actions taken in connection with the preparation
of the Offering Memorandum (including the actions described in the next
paragraph) were sufficient to cause the Offering Memorandum to be accurate,
complete or fair. We are not passing upon and do not assume any responsibility
for the accuracy, completeness or fairness of the Offering Memorandum except to
the extent otherwise explicitly indicated in numbered paragraph 13 above.

      We can however confirm that we have participated in conferences with
representatives of the Company and the Issuer, representatives of the Initial
Purchasers, counsel for the Initial Purchasers and representatives of the
independent accountants for the Company during which disclosures in the Offering
Memorandum and related matters were discussed. In addition, we have reviewed
certain corporate records furnished to us by the Company and the Issuer.

<PAGE>

      Based upon our participation in the conferences and our document review
identified in the preceding paragraph, our understanding of applicable law and
the experience we have gained in our practice thereunder and relying as to
materiality to a large extent upon the opinions and on statements of officers of
the Company, we can, however, advise you that nothing has come to our attention
that has caused us to conclude that the Offering Memorandum, at the date it
bears or on the date of this letter, contained an untrue statement of a material
fact or omitted to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

                                   ----------

      Except for the activities described in the immediately preceding section
of this letter, we have not undertaken any investigation to determine the facts
upon which the advice in this letter is based. We note that our ongoing
representation of the Issuer and Holdings in connection with the transactions
contemplated by the Merger Agreement precludes us from serving as counsel to the
Company until such time the Merger has been consummated.

      We have assumed for purposes of this letter: each document we have
reviewed for purposes of this letter is accurate and complete, each such
document that is an original is authentic, each such document that is a copy
conforms to an authentic original, and all signatures on each such document are
genuine; that the Purchase Agreement and every other agreement we have examined
for purposes of this letter constitutes a valid and binding obligation of each
party to that document and that each such party has satisfied all legal
requirements that are applicable to such party to the extent necessary to
entitle such party to enforce such agreement (except that we make no such
assumption with respect to the Issuer); and that you have acted in good faith
and without notice of any fact which has caused you to reach any conclusion
contrary to any of the advice provided in this letter. We have also made other
assumptions which we believe to be appropriate for purposes of this letter.

      For purposes of our opinion in paragraph 20 above, we have assumed that:
(A) BNY Midwest Trust Company is a "securities intermediary" within the meaning
of Section 8-102(a)(14) of the New York UCC and the Federal Book-Entry
Regulations (as defined in the Pledge Agreement) and is acting as such with
respect to the Collateral Account pursuant to an agreement governed by the State
of New York; (B) the Collateral Account is a "securities account" within the
meaning of Section 8-501(a) of the New York UCC; (C) all property from time to
time credited to the Collateral Account are "financial assets" within the
meaning of Section 8-102(a)(9) of the New York UCC; (D) the Issuer is, and will
remain, the only "entitlement holder" (within the meaning of Section 8-102(a)(7)
of the New York UCC and the Federal Book-Entry Regulations) of the Collateral
Account and the Pledged Financial Assets from time to time credited to the
Collateral Account; (E) BNY Midwest Trust Company, as securities intermediary,
if it holds the Pledged Financial Assets directly, holds them in the

<PAGE>

Collateral Account indorsed to such securities intermediary or in blank; (F) BNY
Midwest Trust Company has, and will continue to have, a Participant's Securities
Account in its name at the Federal Reserve Bank of New York; and (G) the Federal
Reserve Bank of New York has made, and will continue to make, appropriate
entries on its records crediting the Pledged Financial Assets referred to in
paragraph 20 above consisting of Government Securities (as defined in the Pledge
Agreement) to the Participant's Securities Account referred to in clause (F)
above. In addition, our opinions in paragraphs 19 and 20 above are further
subject to all qualifications in Schedule A.

      In preparing this letter we have relied without independent verification
upon: (i) information contained in certificates obtained from governmental
authorities; (ii) factual information represented to be true in the Purchase
Agreement and other documents specifically identified at the beginning of this
letter as having been read by us; (iii) factual information provided to us by
the Company and the Issuer or their representatives; and (iv) factual
information we have obtained from such other sources as we have deemed
reasonable. We have assumed that there has been no relevant change or
development between the dates as of which the information cited in the preceding
sentence was given and the date of this letter and that the information upon
which we have relied is accurate and does not omit disclosures necessary to
prevent such information from being misleading. For purposes of numbered
paragraph 1, we have relied exclusively upon certificates issued by governmental
authorities in the relevant jurisdictions and such opinion is not intended to
provide any conclusion or assurance beyond that conveyed by those certificates.
For purposes of the first sentence in numbered paragraph 15, we have assumed
that the proceeds from the sale of the Notes will be invested in Government
Securities as prescribed by the Pledge Agreement.

      We confirm that we do not have knowledge that has caused us to conclude
that our reliance and assumptions cited in the two immediately preceding
paragraphs are unwarranted. Whenever this letter provides advice about (or based
upon) our knowledge of any particular information or about any information which
has or has not come to our attention such advice is based entirely on the
conscious awareness at the time this letter is delivered on the date it bears by
the lawyers with Kirkland & Ellis at that time who spent substantial time
representing the Issuer in connection with the offering effected pursuant to the
Offering Memorandum.

      Each opinion (an "enforceability opinion") in this letter that any
particular contract is a valid and binding obligation or is enforceable in
accordance with its terms is subject to: (i) the effect of bankruptcy,
insolvency, fraudulent conveyance and other similar laws affecting creditors'
rights generally and judicially developed doctrines in this area such as
substantive consolidation and equitable subordination; (ii) the effect of
general principles of equity; and (iii) other commonly recognized statutory and
judicial constraints on enforceability including statutes of limitations.
"General principles of equity" include but are not limited to: principles
limiting the availability of specific performance and injunctive relief;
principles which limit the availability of a remedy under certain circumstances
where another remedy has been elected;

<PAGE>

principles requiring reasonableness, good faith and fair dealing in the
performance and enforcement of an agreement by the party seeking enforcement;
principles which may permit a party to cure a material failure to perform its
obligations; and principles affording equitable defenses such as waiver, laches
and estoppel. It is possible that terms in a particular contract covered by our
enforceability opinion may not prove enforceable for reasons other than those
explicitly cited in this letter should an actual enforcement action be brought,
but (subject to all the exceptions, qualifications, exclusions and other
limitations contained in this letter) such unenforceability would not in our
opinion prevent the party entitled to enforce that contract from realizing the
principal benefits purported to be provided to that party by the terms in that
contract which are covered by our enforceability opinion.

      Our advice on every legal issue addressed in this letter is based
exclusively on the internal law of the State of New York or the federal law of
the United States, except that (i) the opinions in paragraphs 4, 5, 6, 7, 8 and
18 with respect to due authorization, execution and delivery of the agreements
or instruments referenced therein by the Issuer are based solely on our review
of the MBCA; (ii) the opinion in paragraph 18 with respect to due authorization,
execution and delivery of the Merger Agreement by Holdings is based on the
General Corporation Law of the State of Delaware; and (iii) the opinion in the
second sentence of paragraph 21 with respect to the effects of the Merger are
based solely on our review of Section 302A.641, Subd. 2 of the MBCA. We note
that we are not admitted to practice in the State of Minnesota and, as such, our
opinions are based solely on our review of the applicable statutory provisions
of the MBCA without regard to any regulations promulgated thereunder or any
judicial, administrative or regulatory interpretations thereof. Each of the
Transaction Documents provide that the governing law thereunder shall be the
laws of the State of New York. We express no opinion as to what law might be
applied by any courts to resolve any issue addressed by our opinion and we
express no opinion as to whether any relevant difference exists between the laws
upon which our opinions are based and any other laws which may actually be
applied to resolve issues which may arise under the Transaction Documents. The
manner in which any particular issue would be treated in any actual court case
would depend in part on facts and circumstances particular to the case and would
also depend on how the court involved chose to exercise the wide discretionary
authority generally available to it. This letter is not intended to guarantee
the outcome of any legal dispute which may arise in the future.

      None of the opinions or other advice contained in this letter considers or
covers: (i) any state securities or Blue Sky laws or regulations, (ii) any
financial statements or supporting schedules (or any notes to any such
statements or schedules) or other financial or statistical information set forth
or incorporated by reference in (or omitted from) the Offering Memorandum or
(iii) any rules and regulations of the National Association of Securities
Dealers, Inc. relating to the compensation of underwriters. In addition, none of
the opinions or other advice contained in this letter covers or otherwise
addresses any of the following types of provisions which may be contained in the
Transaction Documents: (i) provisions mandating contribution towards judgments
or settlements among various parties; (ii) waivers of benefits and

<PAGE>

rights to the extent they cannot be waived under applicable law; (iii)
provisions providing for liquidated damages, late charges and prepayment
charges, in each case if deemed to constitute penalties; (iv) provisions which
might require indemnification or contribution in violation of general principles
of equity or public policy, including, without limitation, indemnification or
contribution obligations which arise out of the failure to comply with
applicable state or federal securities laws; or (v) requirements in the
Transaction Documents specifying that provisions thereof may only be waived in
writing (these provisions may not be valid, binding or enforceable to the extent
that an oral agreement or an implied agreement by trade practice or course of
conduct has been created modifying any provision of such documents). This letter
does not cover any other laws, statutes, governmental rules or regulations or
decisions which in our experience are not usually considered for or covered by
opinions like those contained in this letter or are not generally applicable to
transactions of the kind covered by the Purchase Agreement.

      This letter speaks as of the time of its delivery on the date it bears. We
do not assume any obligation to provide you with any subsequent opinion or
advice by reason of any fact about which we did not have knowledge at that time,
by reason of any change subsequent to that time in any law other governmental
requirement or interpretation thereof covered by any of our opinions or advice,
or for any other reason.

      This letter may be relied upon by the Initial Purchasers only for the
purpose served by the provision in the Purchase Agreement cited in the initial
paragraph of this letter in response to which it has been delivered. Without our
written consent: (i) no person other than the Initial Purchasers may rely on
this letter for any purpose; (ii) this letter may not be cited or quoted in any
financial statement, offering memorandum, private placement memorandum or other
similar document; (iii) this letter may not be cited or quoted in any other
document or communication which might encourage reliance upon this letter by any
person or for any purpose excluded by the restrictions in this paragraph; and
(iv) copies of this letter may not be furnished to anyone for purposes of
encouraging such reliance.

                                                   Very truly yours,

                                                   KIRKLAND & ELLIS

<PAGE>

                                    Exhibit A

                  Material Contracts of the Company and Issuer

1.    Egg Supplier Agreement between Papetti's of Iowa Food Products, Inc. and
      Sunbest/Papetti Farms dated October 19, 1993.

2.    Consolidated, Restated and Amended License Agreement dated June 9, 2000 by
      and between North Carolina State University and the Company.

3.    7.58% Senior Notes due February 26, 2009 issued under those certain Loan
      Agreements dated February 26, 1997 between the Company and various lenders
      named therein, including Metropolitan Life Insurance Company, as Agent,
      including all security, pledge and collateral agreements related thereto.

4.    Form of Credit Agreement, between the Company, as borrower, Holdings and
      the subsidiaries of the Company from time to time, as guarantors, the
      lenders from time to time and, Bank of America, N. A., as Agent.

5.    Composite Amended Agreement and Plan of Merger, dated as of December 21,
      2000, by and among Holdings, the Issuer and the Company.

6.    Lease Agreement, dated as of June 1, 1997, by and between Park National
      Bank Building Corporation and the Company, relating to the lease of office
      space located at 5353 Wayzata Boulevard, St. Louis Park, MN 55416.

7.    Lease, dated as of February 26, 1997, by and between the Company and A&A
      Urban Renewal, relating to the lease of a facility located at 100 Trumbull
      St., Elizabeth, NJ.

8.    Lease, dated as of February 26, 1997, by and between Michael Foods, Inc.
      (a Delaware coproration) and Papetti Holding Company, et al., relating to
      the lease of a facility located at 877-879 E. North Ave., Elizabeth, NJ.

9.    Lease, dated as of February 26, 1997, by and between Michael Foods, Inc.
      (a Delaware corporation) and Papetti Holding Company, relating to the
      lease of a facility located at 847-855 E. North Ave., Elizabeth, NJ.

10.   Lease, dated as of February 26, 1997, by and between Michael Foods, Inc.
      (a Delaware corporation) and Jersey Pride Urban Renewal, relating to the
      lease of a facility located at One Papetti Plaza., Elizabeth, NJ.

11.   Lease, dated as of January 15, 1993, by and between Midwest Mix, Inc. and
      Associated Milk Producters, Inc., relating to the lease of a facility
      located at 1101 Main Street, Sulphur Springs, TX.

<PAGE>

12.   Lease, dated as of April 30, 1999, by and between Kohler Mix Specialties
      of Connecticut, Inc. and H.P. Hood, Inc., relating to a lease of a
      facility located at 100 Milk Lane, Newington, CT.

13.   Lease, dated as of May 4, 1988, by and between Park Place OPCO, LLC and
      Crystal Farms Refrigerated Distribution Company, relating to an office
      facility located at 6465 Wayzata Blvd. St. Louis Park, MN.

14.   Lease Agreement, dated as of June 27, 2000, by and among Civic Center
      Properties, LLC and the Company, relating to a facility located at 3840 N.
      Civic Center Dr., North Las Vegas, NV.

15.   Letter Agreement, dated as of December 21, 2000, between the Issuer and
      Vestar Capital Partners IV, L.P.

16.   Letter Agreement, dated as of December 21, 2000, between the Issuer and
      Marathon Fund Limited Partnership IV.

17.   Form of Employment Agreement between the Company and Gregg A. Ostrander.

18.   Form of Employment Agreement between the Company and John D. Reedy.

19.   Form of Employment Agreement between the Company and James D. Clarkson.

20.   Form of Employment Agreement between the Company and Bill L. Goucher.

                                      C-2
<PAGE>

                                   Schedule A

                                 Qualifications

            The opinions and advice contained in paragraphs 19 and 20 of our
letter are subject to the following advice:

      (a)   Our opinions regarding the creation and perfection of security
            interests are subject to (i) the limitations on the existence and
            perfection of security interests in collateral following its sale,
            exchange or other disposition, and in proceeds resulting from the
            operation of Sections 9-306 and 9-309 of the New York UCC, and (ii)
            the effect of Section 547 of the Bankruptcy Code with respect to
            preferential transfers and Section 552 of the Bankruptcy Code with
            respect to any collateral acquired by the Issuer subsequent to the
            commencement of a case against or by the Issuer under the Bankruptcy
            Code.

      (b)   The rights of an entitlement holder with respect to any security
            entitlement are subject to the limitations set forth in Section
            8-503 of the New York UCC.

      c)    Our opinions regarding the priority of security interests are
            subject to the provisions of Sections 9-115(5)(b) and 9-115(5)(c) of
            the New York UCC.

                                      C-3
<PAGE>

                                                                       EXHIBIT D

                    FORM OF OPINION OF COUNSEL OF THE COMPANY

            Opinion of Kaplan, Strangis and Kaplan, P.A., counsel of the Company
to be delivered pursuant to Section 5(d) of the Purchase Agreement.

                                 March 27, 2001

Banc of America Securities LLC
Bear, Stearns & Co. Inc.,
as Initial Purchasers
c/o Banc of America Securities LLC
9 West 57th Street, 47th Floor
New York, New York 10019

            Re:   Michael Foods, Inc. $200,000,000 11 3/4% Senior Subordinated
                  Notes due 2011

Ladies and Gentlemen:

      We have acted as special counsel to Michael Foods, Inc., a Minnesota
Corporation (the "Company"), in connection with the Purchase Agreement dated
March 16, 2001 (the "Purchase Agreement") among the Company, Michael Foods
Acquisition Corp., a Minnesota corporation, and Banc of America Securities LLC
and Bear, Stearns & Co. Inc. This opinion is being delivered pursuant to Section
5(d) of the Purchase Agreement. All capitalized terms used herein and not
defined herein shall have the meanings assigned to them in the Purchase
Agreement.

      In connection with this opinion, we have reviewed the following documents:

      (i)   An executed original of the Purchase Agreement;

      (ii)  A certified copy of resolutions adopted by the Board of Directors of
            the Company on February 28, 2001 with respect to the Purchase
            Agreement; and

      (iii) An executed original of the Merger Agreement and certified copies of
            resolutions adopted by the Board of Directors of the Company on
            December 21, 2000 and February 28, 2001 in connection therewith.

      In addition, we have examined such documents, reviewed such questions of
law and received such information from officers and representatives of the
Company, as we have deemed necessary or appropriate for the purposes of this
opinion.

      As to questions of fact material to our opinions, we have relied upon
representations made in the Purchase Agreement and upon certificates of officers
of the Company and of public

                                       4
<PAGE>

officials (including, without limitation, those certificates delivered to others
on the Closing Date). We have also assumed that there has been no relevant
change or development between the dates as of which the information cited in the
preceding sentence was given and the date of this letter and that information
upon which we have relied is accurate and does not omit disclosures necessary to
prevent such information from being misleading. For purposes of numbered
paragraphs 2 (with respect to the Company's subsidiaries listed in Exhibit B)
and 3 below, we have relied exclusively upon certificates issued by governmental
authorities in the relevant jurisdictions and such opinions are not intended to
provide any conclusion or assurance beyond that conveyed by those certificates.

      In rendering our opinions set forth below, we have assumed the
authenticity of all documents submitted to us as originals, the genuineness of
all signatures and the conformity to authentic originals of all documents
submitted to us as copies. We have also assumed the legal capacity for all
purposes relevant hereto of all natural persons and, with respect to all parties
to agreements or instruments relevant hereto other than the Company, that such
parties had the requisite power and authority (corporate or otherwise) to
execute, deliver and perform such agreements or instruments, that such
agreements or instruments have been duly authorized by all requisite action
(corporate or otherwise), executed and delivered by such parties, and that such
agreements or instruments are the valid, binding and enforceable obligations of
such parties.

      Whenever our opinion expressed in this letter provides advice about (or is
based upon) our knowledge of any particular information or about any information
which has or has not come to our attention, such advice is based entirely upon
the conscious awareness at the time this letter is delivered on the date it
bears by Mary S. Giesler and James C. Melville, the attorneys in this firm who
have represented the Company in connection with the Purchase Agreement. We
hereby advise you that we have not regularly represented the Company with
respect to its ongoing operations, and the purpose of our professional
engagement was not to establish factual matters or be involved in the
preparation of the Offering Memorandum. We make no representation that we have
independently verified the accuracy, completeness or fairness of the Offering
Memorandum or that the actions taken in connection with the preparation of the
Offering Memorandum were sufficient to cause the Offering Memorandum to be
accurate, complete or fair. We are not passing upon and do not assume any
responsibility for the accuracy, completeness or fairness of the Offering
Memorandum. No inference as to our knowledge with respect to such matters should
be drawn from the fact of our limited representation of the Company.

      Based on the foregoing, and subject to the qualifications set forth below,
we are of the opinion that:

      1.    The Company is a corporation existing and in good standing under the
            laws of the State of Minnesota.

      2.    Each of the Company's subsidiaries listed on Exhibit A and Exhibit B
            attached hereto (the "Subsidiaries") is an existing corporation,
            limited partnership or cooperative, as applicable, and is in good
            standing under the laws of the jurisdiction of its organization.

                                       5
<PAGE>

      3.    The Company and each of the Subsidiaries are qualified to do
            business as a foreign corporation, limited partnership or
            cooperative, as applicable, and is in good standing in those states
            listed on Exhibit C attached hereto, which we have been informed by
            the Company are the only states where it or the Subsidiaries own or
            lease property.

      4.    Based solely on our review of the minute books, and stock or
            partnership interest records or limited partnership agreements of
            such entities, to our knowledge, all of the issued and outstanding
            capital stock or partnership interests, as the case may be, of the
            Subsidiaries is owned of record by the Company or one of its
            Subsidiaries as indicated on Exhibit D attached hereto, except as
            noted thereon.

      5.    The Company and each of the Subsidiaries has the power to own and
            lease their respective properties and to conduct their respective
            businesses as described in the Offering Memorandum.

      6.    The Purchase Agreement has been duly authorized by all requisite
            corporate action, executed and delivered by the Company.

      7.    The Merger Agreement has been duly authorized by all requisite
            corporate action, executed and delivered by the Company. The Merger
            Agreement (assuming the due authorization, execution and delivery by
            Issuer and M-Foods Holdings, Inc.) constitutes the valid and binding
            obligation of the Company enforceable in accordance with its terms.

      8.    Upon consummation of the Merger, all of the obligations of the
            Issuer under the Purchase Agreement, the Indenture, the Notes, the
            Registration Rights Agreement and the Pledge Agreement will become
            obligations of the Surviving Corporation by operation of law
            pursuant to Section 302A.641, Subd. 2 of the Minnesota Business
            Corporation Act.

      Our opinions set forth above are subject to the following qualifications:

      (a) Our opinions are subject to the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or other similar law of general
application, including (without limitation) applicable fraudulent transfer laws.

      (b) Our opinions are subject to the effect of general principles of
equity, including (without limitation) concepts of materiality, reasonableness,
good faith and fair dealing, and other similar doctrines affecting the
enforceability of agreements generally (regardless of whether considered in a
proceeding in equity or at law).

      (c) Minn. Statutes Section 290.371, Subd. 5 provides that any corporation
required to file a Notice of Business Activities Report does not have a cause of
action upon which it may bring suit under Minnesota law unless the corporation
has filed a Notice of Business Activities Report and provides that the use of
the courts of the State of Minnesota for all contracts executed and all causes
of action that arose before the end of any period for which a corporation failed
to file a

                                       6
<PAGE>

required report is precluded. Insofar as our opinions may relate to the valid,
binding and enforceable character of any agreement under Minnesota law or in a
Minnesota court, we have assumed that any party seeking to enforce such
agreement has at all times been, and will continue at all times to be, exempt
from the requirements of filing a Notice of Business Activities Report or, if
not exempt, has duly filed, and will continue to duly file, all Notice of
Business Activities Reports.

      (d) We are qualified to practice law only in the State of Minnesota and
don't purport to be expert in the laws of any other state. Our opinions
expressed above are limited to the laws of the State of Minnesota. We call your
attention to the fact that the Purchase Agreement states that it is governed by
New York law. We have not examined the question of what law would govern the
interpretation or enforcement of such agreement.

      Our opinions are limited to the specific issues addressed and are limited
in all respects to laws and facts existing on the date of this letter. We do not
assume any obligation to provide you with any subsequent opinion or advice by
reason of any fact about which we did not have knowledge at that time, by reason
of any change subsequent to that time of any law, other governmental requirement
or interpretation thereof covered by any of our opinions or advice or for any
other reason.

      This letter may be relied upon by the Initial Purchasers only for the
purpose served by the provision in the Purchase Agreement cited in the initial
paragraph of this letter, in response to which it has been delivered.

      Without our written consent: (i) no person other than the Initial
Purchasers may rely on this letter for any purpose; (ii) this letter may not be
cited or quoted in any financial statement, offering memorandum, private
placement memorandum, or other similar document; (iii) this letter may not be
cited or quoted in any other document or communication which might encourage
reliance upon this letter by any person or for any purpose excluded by the
restrictions in this paragraph; and (iv) copies of this letter may not be
furnished to anyone for purposes of encouraging such reliance.

                                       7
<PAGE>

                                                                       Exhibit A

Subsidiaries of the Company incorporated in the State of Minnesota:

Casa Trucking, Inc.
Crystal Farms Refrigerated Distribution Company
Kohler Mix Specialties, Inc.
Midwest Mix, Inc.
Minnesota Products, Inc.
Northern Star Co.
Papetti's Hygrade Egg Products, Inc.

                                      A-1
<PAGE>

                                                                       Exhibit B

Subsidiaries of the Company formed in jurisdictions other than Minnesota:

        Entity Name                            State of Formation
        -----------                            ------------------

Farm Fresh Foods, Inc.                         California corporation
Farm Fresh Foods of Nevada, Inc.               Nevada corporation
Kohler Mix Specialties of Connecticut, Inc.    Connecticut corporation
M.G. Waldbaum Company                          Nebraska corporation
Michael Foods of Delaware, Inc.                Delaware corporation
Papetti Electroheating Corporation             New Jersey corporation
R&P Liquid Egg Technology Limited Partnership  New Jersey limited partnership
WFC, Inc.                                      Wisconsin corporation
Wisco Farm Cooperative                         Wisconsin cooperative association

                                      B-1
<PAGE>

                                                                       Exhibit C

Foreign Qualification of the Company and its Subsidiaries:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
    Name of Entity                                      State of         States in which
                                                      Incorporation         Qualified
------------------------------------------------------------------------------------------------
<S>                                                   <C>               <C>
    Casa Trucking, Inc.                               Minnesota         Iowa
                                                                        New Jersey
                                                                        Pennsylvania
------------------------------------------------------------------------------------------------
    Crystal Farms Refrigerated Distribution           Minnesota         Colorado
    Company                                                             Illinois
                                                                        Indiana
                                                                        Iowa
                                                                        Kansas
                                                                        Missouri
                                                                        Nebraska
                                                                        North Dakota
                                                                        Ohio
                                                                        Pennsylvania
                                                                        South Dakota
------------------------------------------------------------------------------------------------
    Farm Fresh Foods, Inc.                            California        None
------------------------------------------------------------------------------------------------
    Farm Fresh Foods of Nevada, Inc.                  Nevada            None
------------------------------------------------------------------------------------------------
    Kohler Mix Specialties, Inc.                      Minnesota         Wisconsin
------------------------------------------------------------------------------------------------
    Kohler Mix Specialties of Connecticut, Inc.       Connecticut       None
------------------------------------------------------------------------------------------------
    M.G. Waldbaum Company                             Nebraska          Colorado
                                                                        Iowa
                                                                        Minnesota
                                                                        Ohio
                                                                        South Dakota
                                                                        Texas
                                                                        Wisconsin
------------------------------------------------------------------------------------------------
    Michael Foods, Inc.                               Minnesota         Pennsylvania
------------------------------------------------------------------------------------------------
    Michael Foods of Delaware, Inc.                   Delaware          Minnesota
------------------------------------------------------------------------------------------------
    Midwest Mix, Inc.                                 Minnesota         Texas
------------------------------------------------------------------------------------------------
    Minnesota Products, Inc.                          Minnesota         None
------------------------------------------------------------------------------------------------
    Northern Star Co.                                 Minnesota         None
------------------------------------------------------------------------------------------------
    Papetti Electroheating Corporation                New Jersey        None
------------------------------------------------------------------------------------------------
    Papetti's Hygrade Egg Products, Inc.              Minnesota         New Jersey
                                                                        Pennsylvania
------------------------------------------------------------------------------------------------
    WFC, Inc.                                         Wisconsin         None
------------------------------------------------------------------------------------------------
    Wisco Farm Cooperative                            Wisconsin         None
------------------------------------------------------------------------------------------------
    R&P Liquid Egg Technology Limited Partnership     New Jersey        None
------------------------------------------------------------------------------------------------
</TABLE>

                                      C-1
<PAGE>

                                                                       Exhibit D

Record Ownership of the Company's Subsidiaries:

<TABLE>
<CAPTION>
                                                                                    Percentage
Name of Entity                                  Record Owner                        Ownership
--------------                                  ------------                        ----------
<S>                                             <C>                                    <C>
Casa Trucking, Inc.                             M.G. Waldbaum Company                  100%

Crystal Farms Refrigerated Distribution         Michael Foods of Delaware, Inc.        100%
Company
Farm Fresh Foods, Inc.                          Michael Foods of Delaware, Inc.        100%

Farm Fresh Foods of Nevada, Inc.                Michael Foods of Delaware, Inc.        100%

Kohler Mix Specialties, Inc.                    Michael Foods of Delaware, Inc.        100%

Kohler Mix Specialties of Connecticut, Inc.     Kohler Mix Specialties, Inc.           100%

M.G. Waldbaum Company                           Michael Foods of Delaware, Inc.        100%

Michael Foods of Delaware, Inc.                 Michael Foods, Inc.                    100%

Midwest Mix, Inc.                               Kohler Mix Specialties, Inc.           100%

Minnesota Products, Inc.                        Northern Star Co.                      100%

Northern Star Co.                               Michael Foods of Delaware, Inc.        100%

Papetti Electroheating Corporation              Papetti's Hygrade Egg Products,        100%
                                                Inc.

Papetti's Hygrade Egg Products, Inc.            M.G. Waldbaum Company                  100%

R&P Liquid Egg Technology Limited               General Partner:
Partnership                                     Papetti Electroheating Corporation
                                                Limited Partners:
                                                Papetti's Hygrade Egg Products,       1.00%
                                                Inc.
                                                Raztek Corporation-not a direct       49.00%
                                                or indirect subsidiary of the         50.00%
                                                Company

WFC, Inc.                                       Michael Foods of Delaware, Inc.        100%

Wisco Farm Cooperative                          WFC, Inc.                              100%
</TABLE>

<PAGE>

                                                                         ANNEX I

                    TERMS AND CONDITIONS OF OFFERS AND SALES

Resale Pursuant to Regulation S or Rule 144A.

The Initial Purchasers understand that:

            (a) The Initial Purchasers agree that they have not offered or sold
and will not offer or sell the Securities in the United States or to, or for the
benefit or account of, a U.S. Person (other than a distributor), in each case,
as defined in Rule 902 under the Securities Act (i) as part of its distribution
at any time and (ii) otherwise until 40 days after the later of the commencement
of the offering of the Securities pursuant hereto and the Closing Date, other
than in accordance with Regulation S of the Securities Act or another exemption
from the registration requirements of the Securities Act. Such Initial
Purchasers agree that, during such 40-day restricted period, they will not cause
any advertisement with respect to the Securities (including any "tombstone"
advertisement) to be published in any newspaper or periodical or posted in any
public place and will not issue any circular relating to the Securities, except
such advertisements as permitted by and include the statements required by
Regulation S.

            (b) The Initial Purchasers agree that, at or prior to confirmation
of a sale of Securities by them to any distributor, dealer or person receiving a
selling concession, fee or other remuneration during the 40-day restricted
period referred to in Rule 903(c)(3) under the Securities Act, they will send to
such distributor, dealer or person receiving a selling concession, fee or other
remuneration a confirmation or notice to substantially the following effect:

      "The Securities covered hereby have not been registered under the U.S.
      Securities Act of 1933, as amended (the "Securities Act"), and may not be
      offered and sold within the United States or to, or for the account or
      benefit of, U.S. persons (i) as part of your distribution at any time or
      (ii) otherwise until 40 days after the later of the commencement of the
      Offering and the Closing Date, except in either case in accordance with
      Regulation S under the Securities Act (or Rule 144A or to Accredited
      Institutions in transactions that are exempt from the registration
      requirements of the Securities Act), and in connection with any subsequent
      sale by you of the Notes covered hereby in reliance on Regulation S during
      the period referred to above to any distributor, dealer or person
      receiving a selling concession, fee or other remuneration, you must
      deliver a notice to substantially the foregoing effect. Terms used above
      have the meanings assigned to them in Regulation S."

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