Document:

EXHIBIT 4(s)

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                            AMERICAN EXPRESS COMPANY

                                1.85% Convertible
                           Senior Debentures due 2033

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                                    INDENTURE

                          Dated as of November 21, 2003

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                                    U.S. BANK
                              NATIONAL ASSOCIATION

                                     TRUSTEE

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<PAGE>

                            AMERICAN EXPRESS COMPANY
                             CROSS REFERENCE SHEET*

THIS CROSS REFERENCE SHEET SHOWS THE LOCATION IN THE INDENTURE OF THE PROVISIONS
INSERTED PURSUANT TO SECTION 310-318(a), INCLUSIVE, OF THE TIA.

<TABLE>
<CAPTION>
                  TRUST INDENTURE ACT                      Sections of Indenture
                  -------------------                      ---------------------
<S>                                                        <C>
310(a)(1)(2).............................................. 5.09
      (3)(4).............................................. Inapplicable
         (5).............................................. 5.09
   (b).................................................... 5.07 and 5.09
   (b)(1)(A)(C)........................................... Inapplicable
   (c).................................................... Inapplicable
311(a)(b)................................................. 5.10
   (c)                                                     Inapplicable
313(a).................................................... 6.03
   (b)(1)................................................. Inapplicable
      (2)................................................. 6.03
   (c).................................................... 18.03
   (d).................................................... 6.03
314(a).................................................... 6.04, 9.04 and 18.03
   (b).................................................... Inapplicable
   (c)(1)(2).............................................. 1.02
         (3).............................................. Inapplicable
   (d).................................................... Inapplicable
   (e).................................................... 1.02
315(a)(b)(d).............................................. 5.01
   (b).................................................... 5.05
   (e).................................................... 4.14
316(a)(1)................................................. 4.12 and 4.13
      (2)................................................. Inapplicable
   (b).................................................... 4.08
   (c).................................................... 1.04(e)
317(a).................................................... 4.03 and 4.04
   (b).................................................... 9.03
318(a)(c)................................................. 1.05
   (b).................................................... Inapplicable
</TABLE>

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* The Cross Reference Sheet is not part of the Indenture.

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                                TABLE OF CONTENTS

<TABLE>
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<S>                                                                           <C>
                                    ARTICLE 1
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.01.  Certain Terms Defined...........................................1
Section 1.02.  Compliance Certificates and Opinions...........................11
Section 1.03.  Forms of Documents Delivered to Trustee........................11
Section 1.04.  Acts of Holders................................................12
Section 1.05.  Conflict with Trust Indenture Act of 1939......................13
Section 1.06.  Effect of Headings and Table of Contents.......................13
Section 1.07.  Separability Clause............................................13
Section 1.08.  Benefits of Indenture..........................................13
Section 1.09.  Legal Holidays.................................................13

                                    ARTICLE 2
                                 THE SECURITIES

Section 2.01.  Form and Dating................................................14
Section 2.02.  Execution and Authentication...................................15
Section 2.03.  Registrar, Paying Agent, Conversion Agent and Calculation
                  Agent.......................................................15
Section 2.04.  Paying Agent to Hold Money and Securities in Trust.............16
Section 2.05.  Transfer and Exchange..........................................16
Section 2.06.  Replacement Securities.........................................18
Section 2.07.  Outstanding Securities; Determinations of Holders' Actions.....19
Section 2.08.  Temporary Securities...........................................20
Section 2.09.  Cancellation...................................................20
Section 2.10.  Persons Deemed Owners..........................................20
Section 2.11.  Global Securities..............................................21
Section 2.12.  Legends........................................................22
Section 2.13.  Payment of Interest; Interest Rights Preserved.................23
Section 2.14.  CUSIP Numbers..................................................25
Section 2.15.  Calculation of Tax Original Issue Discount.....................25

                                    ARTICLE 3
                           SATISFACTION AND DISCHARGE

Section 3.01.  Discharge of Liability on Securities...........................26
Section 3.02.  Repayment of Moneys Held by Trustee............................27
</TABLE>

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<TABLE>
<S>                                                                           <C>
                                    ARTICLE 4
                                    REMEDIES

Section 4.01.  Events of Default..............................................27
Section 4.02.  Acceleration of Maturity; Rescission and Annulment.............29
Section 4.03.  Collection of Indebtedness and Suits for Enforcement by
                  Trustee.....................................................30
Section 4.04.  Trustee May File Proofs of Claim...............................31
Section 4.05.  Trustee May Enforce Claims without Possession of Securities....32
Section 4.06.  Application of Money Collected.................................32
Section 4.07.  Limitation on Suits............................................32
Section 4.08.  Unconditional Right of Holders To Receive Principal and
                  Interest....................................................33
Section 4.09.  Restoration of Right and Remedies..............................33
Section 4.10.  Rights and Remedies Cumulative.................................34
Section 4.11.  Delay or Omission Not Waiver...................................34
Section 4.12.  Control by Holders.............................................34
Section 4.13.  Waiver of Past Defaults........................................35
Section 4.14.  Undertaking for Costs..........................................35
Section 4.15.  Waiver of Stay or Extension Laws...............................35

                                    ARTICLE 5
                                   THE TRUSTEE

Section 5.01.  Duties of Trustee..............................................36
Section 5.02.  Rights of Trustee..............................................37
Section 5.03.  Individual Rights of Trustee...................................39
Section 5.04.  Trustee's Disclaimer...........................................39
Section 5.05.  Notice of Defaults.............................................39
Section 5.06.  Compensation and Indemnity.....................................39
Section 5.07.  Replacement of Trustee.........................................40
Section 5.08.  Successor Trustee by Merger....................................41
Section 5.09.  Eligibility; Disqualification..................................41
Section 5.10.  Preferential Collection of Claims Against Company..............42
Section 5.11.  Authenticating Agent...........................................42

                                    ARTICLE 6
                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 6.01.  Company to Furnish Trustee Information as to Names and
                  Addresses of Holders........................................43
Section 6.02.  Preservation of Information; Communications to Holders.........44
Section 6.03.  Reports by Trustee.............................................45
Section 6.04.  Reports by Company.............................................45
</TABLE>

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<TABLE>
<S>                                                                           <C>
                                    ARTICLE 7
                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

Section 7.01.  Consolidations and Mergers of Company Permitted Subject to
                  Certain Conditions..........................................46
Section 7.02.  Rights and Duties of Successor Entity..........................47

                                    ARTICLE 8
                             SUPPLEMENTAL INDENTURES

Section 8.01.  Supplemental Indentures Without Consent of Holders.............47
Section 8.02.  Supplemental Indentures with Consent of Holders................48
Section 8.03.  Execution of Supplemental Indentures...........................50
Section 8.04.  Effect of Supplemental Indentures..............................50
Section 8.05.  Reference in Securities to Supplemental Indentures.............50

                                    ARTICLE 9
                            COVENANTS OF THE COMPANY

Section 9.01.  Payment of Principal, Premium and Interest.....................51
Section 9.02.  Maintenance of Office or Agency................................51
Section 9.03.  Money for Securities Payments to be Held in Trust..............52
Section 9.04.  Compliance Certificate.........................................53
Section 9.05.  Restrictions on the Creation of Mortgages and Liens............53
Section 9.06.  Calculation of Tax Original Issue Discount.....................54
Section 9.07.  Further Instruments and Acts...................................54
Section 9.08.  Obligation to Conduct Remarketing..............................54

                                   ARTICLE 10
                            REDEMPTION OF SECURITIES

Section 10.01. Right to Redeem; Notices to Trustee............................54
Section 10.02. Selection of Securities to Be Redeemed.........................55
Section 10.03. Notice of Redemption...........................................55
Section 10.04. Effect of Notice of Redemption.................................56
Section 10.05. Deposit of Redemption Price....................................56
Section 10.06. Securities Redeemed in Part....................................57

                                   ARTICLE 11
                                   CONVERSION

Section 11.01. Conversion Rights..............................................57
Section 11.02. Conversion Rights Based on Common Stock Price..................58
Section 11.03. Conversion Rights Upon Credit Rating Events....................58
Section 11.04. Conversion Rights Upon Notice of Redemption....................58
</TABLE>

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<TABLE>
<S>                                                                           <C>
Section 11.05. Conversion Rights Upon Occurrence of Certain Corporate
                  Transactions................................................58
Section 11.06. Conversion Upon Satisfaction Of Trading Price Condition........59
Section 11.07. Conversion Procedures..........................................60
Section 11.08. Fractional Shares..............................................63
Section 11.09. Taxes on Conversion............................................63
Section 11.10. Reservation of Shares, Shares to Be Fully Paid; Compliance
                  with Governmental Requirements; Listing of Common Stock.....63
Section 11.11. Adjustment Of Conversion Rate..................................64
Section 11.12. Adjustment for Tax Purposes....................................74
Section 11.13. Notice of Certain Transactions.................................75
Section 11.14. Effect of Reclassification, Consolidation, Merger or Sale
                  on Conversion Privilege.....................................75
Section 11.15. Trustee's Disclaimer...........................................76
Section 11.16. Rights Issued in Respect of Common Stock Issued Upon
                  Conversion..................................................77
Section 11.17. Company Determination Final....................................77

                                   ARTICLE 12
                          PURCHASE AT OPTION OF HOLDERS

Section 12.01. Right to Require Purchase......................................77
Section 12.02. Purchase Procedures............................................77
Section 12.03. Effect of Purchase Notice......................................79
Section 12.04. Deposit of Purchase Price......................................80
Section 12.05. Securities Purchased in Part...................................80
Section 12.06. Repayment to the Company.......................................81

                                   ARTICLE 13
              PURCHASE AT OPTION OF HOLDER UPON A CHANGE IN CONTROL

Section 13.01. Right to Require Purchase......................................81
Section 13.02. Effect of Change in Control Purchase Notice....................85
Section 13.03. Deposit of Change in Control Purchase Price....................86
Section 13.04. Securities Purchased in Part...................................87
Section 13.05. Repayment to the Company.......................................87

                                   ARTICLE 14
                               CONTINGENT INTEREST

Section 14.01. Contingent Interest............................................87
Section 14.02. Payment of Contingent Interest.................................88
Section 14.03. Notice of Contingent Interest..................................88
</TABLE>

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<TABLE>
<S>                                                                           <C>
                                   ARTICLE 15
                              CONTINGENT ACCRETION

Section 15.01. Contingent Accretion...........................................89
Section 15.02. Payment of Contingent Accretion................................89
Section 15.03. Notice of Contingent Accretion.................................89

                                   ARTICLE 16
                           YIELD RESET AND REMARKETING

Section 16.01. Remarketing Reset Event........................................90
Section 16.02. Reset Yield....................................................90
Section 16.03. Remarketing Procedures.........................................92
Section 16.04. Right to Require Purchase......................................94

                                   ARTICLE 17
   IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS, DIRECTORS AND EMPLOYEES

Section 17.01. Exemption From Individual Liability............................95

                                   ARTICLE 18
                            MISCELLANEOUS PROVISIONS

Section 18.01. Successors and Assigns of Company Bound by Indenture...........96
Section 18.02. Acts of Board, Committee or Officer of Successor
                  Corporation Valid...........................................96
Section 18.03. Required Notices or Demands....................................96
Section 18.04. GOVERNING LAW..................................................97
Section 18.05. Indenture May Be Executed in Counterparts......................97

ANNEX A   --   Form of Global Security
ANNEX B   --   Projected Payment Schedule
</TABLE>

                                        v

<PAGE>

     INDENTURE, dated as of the 21st day of November, 2003, between AMERICAN
EXPRESS COMPANY, a New York corporation (the "Company"), and U.S. BANK NATIONAL
ASSOCIATION, a national banking association organized under the laws of the
United States (the "Trustee").

     WHEREAS, for its lawful corporate purposes, the Company deems it necessary
to issue its securities and has duly authorized the execution and delivery of
this Indenture to provide for the issuance of its 1.85% Convertible Senior
Debentures due 2033 (the "Securities").

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities
by the Holders thereof, it is mutually covenanted and agreed by the Company and
by the Trustee, for the equal and proportionate benefit of all Holders of the
Securities, as follows:

                                    ARTICLE 1
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     Section 1.01. Certain Terms Defined.

     (a) Definitions.

     "Affiliate" of any specified person means any other person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified person. For the purposes of this definition,
"control" when used with respect to any specified person means the power to
direct or cause the direction of 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.

     "Accreted Interest" means, for any Interest Period for any Security as of
any date of determination, (i) the Accreted Principal Amount of such Security at
the beginning of the Interest Period in which such date occurs, multiplied by
(ii) the Applicable Yield for such Interest Period, multiplied by (iii) the
quotient of the actual number of days elapsed from and including the first day
of such Interest Period, to but excluding the date of determination divided by
360; provided that the Accreted Interest for any full Interest Period shall be
calculated by reference to the actual number of days in such Interest Period
divided by 360.

<PAGE>

     "Accreted Principal Amount" means, for any Security as of any date of
determination, (i) the Original Principal Amount of such Security, plus (ii) the
sum of the Accreted Interest for each Interest Period concluding on or prior to
such date, plus (iii) the Accreted Interest for the Interest Period in which
such date occurs as of the date of determination.

     "Applicable Stock Price" means, in respect of a Conversion Date, the
average of the Closing Sale Prices per share of Common Stock over the 10
Trading-Day period starting the third Trading Day following such Conversion
Date.

     "Applicable Yield" means (1) prior to December 1, 2006 0%, (2) unless a
Remarketing Reset Event occurs, from and after December 1, 2006, for any
Interest Period, a rate equal to 1.85% per annum, (3) if a Remarketing Reset
Event occurs, unless the Company has elected pursuant to Section 16.02(b) that
the Securities will bear cash interest, from and after such Remarketing Reset
Event Date, for any Interest Period, the Reset Yield for such Interest Period
and (4) if a Remarketing Reset Event has occurred and the Company has elected
pursuant to Section 16.02(b) to have the Securities bear cash interest, 0% from
and including the applicable Remarketing Reset Date to but excluding the next
succeeding Remarketing Reset Date; provided that in no event shall the
Applicable Yield be less than 0%.

     "Base Conversion Price" means the dollar amount derived by dividing the
Accreted Principal Amount by the Base Conversion Rate.

     "Base Conversion Rate" means 14.4073 shares of Common Stock, subject to
adjustment as set forth in Section 11.11.

     "Board of Directors" means either the board of directors of the Company or
any duly authorized committee of such board.

     "Board Resolution" shall mean a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

     "Business Day" means any day other than a Saturday, a Sunday or a day on
which banking institutions in The City of New York are authorized or required by
law, regulation or executive order to close.

     "Capital Stock" means, as to shares of a corporation, outstanding shares of
stock of any class, whether now or hereafter authorized, irrespective of whether
such class shall be limited to a fixed sum or percentage in respect of the
rights of the holders thereof to participate in dividends and in the
distribution of

                                        2

<PAGE>

assets upon the voluntary liquidation, dissolution or winding up of such
corporation.

     "Closing Sale Price" of the shares of Common Stock on any date means the
closing sale price per share (or, if no closing sale price is reported, the
average of the closing bid and ask prices or, if more than one in either case,
the average of the average closing bid and the average closing ask prices) on
such date as reported on the principal United States securities exchange on
which shares of Common Stock are traded or, if the shares of Common Stock are
not listed on a United States national or regional securities exchange, as
reported by Nasdaq or by the National Quotation Bureau Incorporated. In the
absence of such quotations, the Company shall be entitled to determine the
Closing Sale Price on the basis it considers appropriate. The Closing Sale Price
shall be determined without reference to extended or after hours trading.

     "Commission" means the Securities and Exchange Commission.

     "Common Stock" shall mean the shares of Common Stock, $0.20 par value, of
the Company as it exists on the date of this Indenture or any other shares of
capital stock of the Company into which the Common Stock shall be reclassified
or changed.

     "Company" means the party named as the "Company" in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor. The
foregoing sentence shall likewise apply to any such subsequent successor or
successors.

     "Company Request" or "Company Order" means a written request or order
signed in the name of the Company by any Officer and delivered to the Trustee.

     "Contingent Accretion" means such contingent interest payable as described
in Article 15.

     "Contingent Interest" means such cash interest payable as described in
Article 14.

     "Conversion Rate" with respect to any Conversion Date means:

          (i) if the Applicable Stock Price is less than or equal to the Base
     Conversion Price, the Base Conversion Rate; or

          (ii) if the Applicable Stock Price is greater than the Base Conversion
     Price, the number of shares of Common Stock determined in accordance with
     the following formula:

                                        3

<PAGE>

<TABLE>
<S>                           <C>
                              (Applicable Stock Price - Base Conversion Price)
     Base Conversion Rate + [ ------------------------------------------------ x Incremental Share Factor ]
                                            Applicable Stock Price
</TABLE>

Notwithstanding the foregoing, in no event will the Conversion Rate exceed the
Maximum Conversion Rate. Unless a Remarketing Reset Event occurs, from and after
December 1, 2006, the Conversion Rate shall be fixed at the Conversion Rate
determined as set forth above assuming a Conversion Date that is thirteen
Trading Days prior to December 1, 2006, (the "Fixed Conversion Rate"), subject
to adjustment as set forth in Article 11.

     "Corporate Trust Office" means the office of the Trustee located at 100
Wall Street, 16th Floor, New York, New York 10005 Attention: Ignazio Tamburello,
or such other address as the Trustee may designate from time to time by notice
to the Holders and the Company, or the principal corporate trust office of any
successor Trustee (or such other address as a successor Trustee may designate
from time to time by notice to the Holders and the Company).

     "Custodian" means any Person appointed by the Trustee to act as custodian
of Global Securities for the Depositary. The Trustee initially appoints itself
Custodian.

     "Default" means any event which is, or after notice or passage of time or
both would be, an Event of Default.

     "Effective Conversion Price" means, as of any date of determination, a
dollar amount derived by dividing the Accreted Principal Amount as of such date
of $1,000 Original Principal Amount of Securities by the Conversion Rate then in
effect (assuming a Conversion Date 13 Trading Days prior to the date of
determination); provided that from and after December 1, 2006 (or if such day is
not a Business Day, the immediately succeeding Business Day), the Effective
Conversion Price shall be the Accreted Principal Amount as of such date of
determination divided by the Fixed Conversion Rate.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, and the rules and regulations of the Commission promulgated
thereunder.

     "Fixed Conversion Rate" has the meaning set forth in the definition of
Conversion Rate."

     "Global Security" or "Global Securities" means Securities that are in the
form of the Securities attached hereto as Annex A.

                                        4

<PAGE>

     "Holder" means a person in whose name a Security is registered on the
Registrar's books.

     "Incremental Share Factor" means 43.2219 shares of Common Stock, subject to
adjustment as set forth in Article 11.

     "Indenture" means this Indenture, as amended or supplemented from time to
time in accordance with the terms hereof, including the provisions of the TIA
that are deemed to be a part hereof.

     "Interest Payment Date" means (1) June 1 and December 1 of each year,
subject to Section 1.09, commencing June 1, 2004 or (2) if a Remarketing Reset
Event has occurred, and the Company has elected pursuant to Section 16.02(b)
that the Securities will bear cash interest, any dates specified by the Company
in the notice referred to in Section 16.03(e).

     "Interest Period" means (1) prior to December 1, 2006, the period from and
including the most recent Interest Payment Date to which interest has been paid
or duly made available for payment (or November 21, 2003 if no interest has been
paid or been duly made available for payment) to, but excluding, the next
succeeding Interest Payment Date, or any earlier Change in Control Purchase
Date, (2) unless a Remarketing Reset Event occurs, from and after December 1,
2006, the period from and including each Interest Payment Date to but excluding
the next succeeding Interest Payment Date, or, if earlier, the Stated Maturity,
any Redemption Date, any Purchase Date or any Change in Control Purchase Date,
(3) if a Remarketing Reset Event occurs, unless the Company has elected pursuant
to Section 16.02(b) that the Securities will bear cash interest, from and after
such Remarketing Reset Event Date, the period from and including the applicable
Remarketing Reset Date to but excluding the next succeeding Remarketing Reset
Date, or, if earlier, the Stated Maturity or any Remarketing Purchase Date and
(4) if a Remarketing Reset Event has occurred and the Company has elected
pursuant to Section 16.02(b) to have the Securities bear cash interest, the
period from and including the applicable Remarketing Reset Date or, if later,
the most recent Interest Payment Date (as defined in clause (2) of the
definition thereof) to which interest has been paid or duly made available, to
but excluding the next succeeding Interest Payment Date, or, if earlier, the
earliest of the next succeeding Remarketing Reset Date, the Stated Maturity or
any Remarketing Purchase Date.

     "Issue Date" of any Security means the date on which the Security was
originally issued or deemed issued as set forth on the face of the Security.

     "Legal Holiday" means a day that is not a Business Day.

                                        5

<PAGE>

     "Liquidated Damages" means the Liquidated Damages Amount (as defined in the
Registration Rights Agreement).

     "Maximum Conversion Rate" means 22.7635 shares of Common Stock, subject to
adjustment as set forth in Article 11.

     "Nasdaq" means the Nasdaq National Market.

     "Officer" means the Chairman of the Board, the Chairman of the Executive
Committee of the Board, a Vice Chairman of the Board, the President, any Vice
President, the Treasurer, any Assistant Treasurer, the Comptroller, any
Assistant Comptroller, the Secretary, any Assistant Treasurer or any Assistant
Secretary of the Company.

     "Officers' Certificate" means a written certificate containing the
information specified in Section 1.02, signed in the name of the Company by any
Officer and delivered to the Trustee. An Officers' Certificate given pursuant to
Section 9.04 need not contain the information specified in Section 1.02.

     "Opinion of Counsel" means a written opinion containing the information
specified in Section 1.02 from legal counsel that is delivered to the Trustee.
The counsel may be an employee of, or counsel to, the Company.

     "Original Principal Amount" of a Security means the stated Original
Principal Amount as set forth on the face of such Security.

     "person" or "Person" means any individual, corporation, limited liability
company, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, or government or any agency or political
subdivision thereof.

     "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.06 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

     "Principal Subsidiaries" of the Company means the following so long as they
continue to be Subsidiaries: American Express Travel Related Services Company,
Inc., American Express Financial Corporation, American Express Bank Ltd. and any
one or more Subsidiaries of the Company that shall succeed to all or
substantially all of the business of any of the foregoing Subsidiaries or
succeed to the ownership of all or substantially all of the property and assets
of any of the foregoing Subsidiaries.

                                        6

<PAGE>

     "Purchase Agreement" means the Purchase Agreement dated as of November 17,
2003 among the Company and JP Morgan Securities Inc., Lehman Brothers Inc. and
Merrill Lynch, Pierce, Fenner & Smith Incorporated, as managers of the initial
purchasers named therein.

     "Redemption Date" means the date specified for redemption of the Securities
in accordance with the terms of the Securities and this Indenture.

     "Redemption Price" means, when used with respect to any Security to be
redeemed, 100% of the Accreted Principal Amount of such Security as of the
Redemption Date, plus accrued and unpaid interest (including Contingent Interest
and Liquidated Damages, if any) to, but excluding, the Redemption Date.

     "Registration Rights Agreement" means the Registration Rights Agreement
dated as of November 21, 2003 among the Company, JP Morgan Securities Inc.,
Lehman Brothers Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as
managers of the initial purchasers named in the Purchase Agreement.

     "Regular Record Date" for the interest payable on any Interest Payment Date
means (1) the May 15 or November 15, as the case may be, immediately preceding
such Interest Payment Date and (2) if a Remarketing Reset Event has occurred,
and the Company has elected pursuant to Section 16.02(b) that the Securities
will bear cash interest, any dates specified by the Company in the notice
referred to in Section 16.03(e).

     "Remarketing Agent" means the remarketing agent appointed by the Company
and any successor or replacement remarketing agent appointed by the Company.

     "Remarketing Agreement" means, with respect to a remarketing on a
Remarketing Reset Date, the remarketing agreement entered into between the
Company and the Remarketing Agent with respect to the remarketing of Securities
on such Remarketing Reset Date.

     "Remarketing Purchase Date" means a Remarketing Reset Date on which the
Company is required to purchase Securities pursuant to Section 16.04.

     "Remarketing Purchase Price" has the meaning set forth in Section 16.04.

     "Remarketing Reset Date" means the Remarketing Reset Event Date on which a
Remarketing Reset Event occurs and the dates occurring at least six

                                        7

<PAGE>

months thereafter and prior to the Stated Maturity as specified by the Company
in a notice delivered to the Holders pursuant to Section 16.03(e).

     "Remarketing Reset Event" has the meaning set forth in Section 16.01.

     "Remarketing Reset Event Date" means December 1 of 2006, 2008, 2013, 2018,
2023 and 2028 or, if any such day is not a Business Day, the immediately
succeeding Business Day.

     "Required Remarketing Date" has the meaning set forth in Section 16.03.

     "Reset Yield" has the meaning set forth in Section 16.02.

     "Responsible Officer", when used with respect to the Trustee, means any
officer within the corporate trust department (or any successor group) who shall
have direct responsibility for the administration of this Indenture.

     "Rule 144A" means Rule 144A under the Securities Act (or any successor
provision), as it may be amended from time to time.

     "Securities" or "Security" means any of the Company's 1.85% Convertible
Senior Debentures due 2033, as amended or supplemented from time to time, issued
under this Indenture.

     "Securities Act" means the Securities Act of 1933, as amended from time to
time, and the rules and regulations of the Commission promulgated thereunder.

     "Security Register" means the register maintained by the Registrar that
evidences ownership of the Securities.

     "Special Record Date" means, for the payment of any Defaulted Interest, the
date fixed by the Trustee pursuant to Section 2.13.

     "Stated Maturity" means December 1, 2033.

     "Subsidiary" of any Person means any corporation of which such Person at
the time owns or controls, directly or through an intervening medium, more than
fifty percent (50%) of each class of outstanding Voting Stock, and unless
otherwise specified shall mean a Subsidiary of the Company.

     "Tax Original Issue Discount" means the amount of ordinary interest income
on a Security that must be accrued as original issue discount for United States
federal income tax purposes pursuant to Treasury regulation section 1.1275-4 or
any successor provision.

                                        8

<PAGE>

     "TIA" means (except as provided in Section 8.01 or Section 8.02) the Trust
Indenture Act of 1939 as in effect on the date of this Indenture, provided,
however, that in the event the TIA is amended after such date, TIA means, to the
extent required by any such amendment, the TIA as so amended.

     "Trading Day" means a day during which trading in securities generally
occurs on the New York Stock Exchange or, if the Common Stock is not listed on
the New York Stock Exchange, on the principal other national or regional
securities exchange on which the Common Stock is then listed or, if the Common
Stock is not listed on a national or regional securities exchange, on Nasdaq or,
if the Common Stock is not quoted on Nasdaq, on the principal other market on
which the Common Stock is then traded.

     "Trading Price" means, on any date, the average of the secondary market bid
quotations for the Securities obtained by the Trustee for $10,000,000 Original
Principal Amount of Securities at approximately 3:30 p.m., New York City time,
on such date from three independent nationally recognized securities dealers
selected by the Company; provided that if at least three such bids cannot
reasonably be obtained by the Trustee, but two bids are obtained, then the
average of the two bids shall be used, and if only one such bid can reasonably
be obtained by the Trustee, one bid shall be used; and provided further that if
the Trustee cannot reasonably obtain at least one bid for $10,000,000 Original
Principal Amount of Securities from a nationally recognized securities dealer or
in the Company's reasonable judgment, the bid quotations are not indicative of
the secondary market value of the Securities, then the Trading Price per $1,000
Original Principal Amount of Securities shall be deemed to be less than 96% of
the product of (a) the Conversion Rate on such date (determined using the
Closing Sale Price on such date rather than the Applicable Stock Price) and (b)
the Closing Sale Price on such date.

     "Trustee" means the party named as the "Trustee" in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor. The
foregoing sentence shall likewise apply to any subsequent such successor or
successors.

     "Voting Stock", means stock (or the equivalent thereof) of the class or
classes having general voting power under ordinary circumstances to elect at
least a majority of the board of directors, managers or trustees of such
corporation (irrespective of whether or not at the time stock of any other class
or classes shall have or might have voting power by reason of the occurrence of
any contingency).

     (b) Other Definitions.

                                        9

<PAGE>

<TABLE>
<CAPTION>
                                                                      Defined in
                                Term                                    Section
-------------------------------------------------------------------   ----------
<S>                                                                    <C>
"Act"..............................................................    1.04(a)
"Adjustment Event".................................................    11.11(m)
"Associate"........................................................    13.01
"Bankruptcy Law"...................................................    4.01
"Calculation Agent"................................................    2.03
"Change in Control"................................................    13.01(a)
"Change in Control Purchase Date"..................................    13.01(a)
"Change in Control Purchase Notice"................................    13.01(c)
"Change in Control Purchase Price".................................    13.01(a)
"Contingent Accretion Payment Date" ...............................    16.02(a)
"Conversion Agent".................................................    2.03
"Conversion Date"..................................................    11.07
"Current Market Price".............................................    11.11(i)
"Custodian"........................................................    4.01
"Determination Date"...............................................    11.11(m)
"Depositary".......................................................    2.01
"Distributed Securities"...........................................    11.11(d)
"Dividend Threshold Amount"........................................    11.11(e)
"Event of Default".................................................    4.01
"Ex-Dividend Date".................................................    11.11(g)
"Ex-Dividend Time".................................................    11.05
"Expiration Time"..................................................    11.11(f)
"Fair Market Value"................................................    11.11(i)
"Failed Remarketing"...............................................    16.03
"Legend"...........................................................    2.05(e)
"Mandatory Cash Settlement Election"...............................    11.07
"Measurement Period"...............................................    14.01(a)
"Notice of Default"................................................    4.01
"Notice to Opt Out of Remarketing".................................    16.03(a)
"Paying Agent".....................................................    2.03
"Principal Value Conversion".......................................    11.06
"Purchase Date"....................................................    12.01
"Purchased Shares" ................................................    11.11(f)
"Purchase Notice"..................................................    12.01
"Purchase Price"...................................................    12.01
"Opt Out Date".....................................................    16.03(a)
"QIB"..............................................................    2.01
"Record Date"......................................................    11.11(i)
"Registrar"........................................................    2.03
"Reset Rate".......................................................    16.02(a)
"Rights"...........................................................    11.16
"Rights Agreement".................................................    11.16
</TABLE>

                                       10

<PAGE>

<TABLE>
<CAPTION>
                                                                      Defined in
                                Term                                    Section
-------------------------------------------------------------------   ----------
<S>                                                                    <C>
"S&P"..............................................................    11.03
"Trigger Event" ...................................................    11.11(d)
</TABLE>

     Section 1.02. Compliance Certificates and Opinions. Upon any application or
request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee an Officers'
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion
of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, 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 relating to such
particular application or request, 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 individual signing such certificate or
     opinion has 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 individual, he has
     made such examination or investigation as is necessary to enable him to
     express an informed opinion as to whether or not such covenant or condition
     has been complied with; and

          (iv) a statement as to whether or not, in the opinion of each such
     individual, such condition or covenant has been complied with.

     Section 1.03. Forms of Documents Delivered to Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.

                                       11

<PAGE>

     Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer actually knows that the
certificate or opinion or representations with respect to the matters upon which
his certificate or opinion is based are erroneous. Any such certificate 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 Company stating that the information with respect to such factual matters is
in the possession of the Company, unless such counsel knows, or in the exercise
of reasonable care (but without having made an investigation specifically for
the purpose of rendering such opinion) 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.

     Section 1.04. Acts of Holders. Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders 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 Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Section 5.01) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section.

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

     (c) The ownership of Securities shall be proved by the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Security shall bind every future Holder of the
same Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the

                                       12

<PAGE>

Company in reliance thereon, whether or not notation of such action is made upon
such Security.

     (e) The Company may, but shall not be obligated to, set a record date for
purposes of determining the identity of Holders entitled to vote or consent to
any action by vote or consent authorized or permitted under this Indenture. If a
record date is fixed, those persons who were Holders of Securities at such
record date (or their duly designated proxies), and only those persons, shall be
entitled to take such action by vote or consent or to revoke any vote or consent
previously given, whether or not such persons continue to be Holders after such
record date. No action approved by such vote or consent shall be taken more than
six months after such record date.

     Section 1.05. Conflict with Trust Indenture Act of 1939. If any provision
hereof limits, qualifies or conflicts with a provision of the TIA that is
required under the TIA to be part of and govern this Indenture, the TIA shall
control. If any provision of this Indenture modifies or excludes any provision
of the TIA that may be so modified or excluded, such provision shall be deemed
either to apply to this Indenture so modified or to be excluded, as the case may
be.

     Section 1.06. 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 1.07. Separability Clause. In case any provision in this Indenture
or in any Security shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

     Section 1.08. Benefits of Indenture. Nothing in this Indenture or in the
Securities, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder and the Holders, any benefit or any legal
or equitable right, remedy or claim under this Indenture.

     Section 1.09. Legal Holidays. Subject to the next two succeeding sentences,
if any specified date (including a date for giving notice) on which action is to
be taken under this Indenture is a Legal Holiday, the action shall be taken on
the next succeeding day that is not a Legal Holiday. In any case where an
Interest Payment Date (other than an Interest Payment Date coinciding with the
Stated Maturity or earlier Redemption Date, Purchase Date, Remarketing Purchase
Date or Change in Control Purchase Date) of a Security falls on a day that is
not a Business Day, such Interest Payment Date will be postponed to the next
succeeding Business Day and no interest on such payment will accrue for the
period from and after the Interest Payment Date to such next succeeding Business
Day. If the Stated Maturity, Redemption Date, Purchase Date,

                                       13

<PAGE>

Remarketing Purchase Date or Change in Control Purchase Date of a Security would
fall on a day that is not a Business Day, the required payment of interest, if
any, and principal will be made on the next succeeding Business Day and no
interest on such payment will accrue for the period from and after the Stated
Maturity, Redemption Date, Purchase Date, Remarketing Purchase Date or Change in
Control Purchase Date to such next succeeding Business Day.

                                    ARTICLE 2
                                 THE SECURITIES

     Section 2.01. Form and Dating. The Securities designated "1.85% Convertible
Senior Debentures due 2033" of the Company shall be substantially in the form
set forth in Annex A hereto, which is incorporated into and shall be deemed a
part of this Indenture, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by the
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with the rules of any securities exchange or as may, consistently herewith, be
determined by the officers of the Company executing the Securities, as evidenced
by their execution of the Securities. Each Security shall be dated the date of
its authentication.

     All of the Securities are initially being offered and sold to qualified
institutional buyers as defined in Rule 144A (collectively, "QIBs" or
individually a "QIB") in reliance on Rule 144A under the Securities Act and
shall be issued initially in the form of one or more restricted Global
Securities, which shall be deposited on behalf of the purchasers of the
Securities represented thereby with the Trustee, or any Custodian, as custodian
for the depositary, The Depository Trust Company (such depositary, or any
successor thereto, being hereinafter referred to as the "Depositary"), and
registered in the name of its nominee, Cede & Co., duly executed by the Company
and authenticated by the Trustee as hereinafter provided.

     Each Global Security shall represent such of the outstanding Securities as
shall be specified therein and each shall provide that it shall represent the
aggregate Original Principal Amount of outstanding Securities from time to time
endorsed thereon and that the aggregate Original Principal Amount of outstanding
Securities represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges, redemptions, purchases or conversions of such
Securities. Any endorsement of a Global Security to reflect the amount of any
increase or decrease in the Original Principal Amount of outstanding Securities
represented thereby shall be made by the Trustee or Custodian in accordance with
the standing instructions and procedures existing between the Depositary and the
Trustee or Custodian.

                                       14

<PAGE>

     Certificated Securities shall be issued only under the limited
circumstances provided in Section 2.11(b) hereof.

     Section 2.02. Execution and Authentication. The Securities shall be
executed by the Company by any Officer. The signature of any Officer on the
Securities may be manual or facsimile.

     Securities bearing the manual or facsimile signatures of individuals who
were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of authentication of such Securities.

     No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly
executed by the Trustee or any Authenticating Agent by manual signature of an
authorized officer, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder.

     The Trustee shall authenticate and deliver Securities for original issue in
an aggregate Original Principal Amount of $2,000,000,000 upon a Company Order
without any further action by the Company. The Securities shall be issued only
in registered form without coupons and only in denominations of $1,000 Original
Principal Amount and any integral multiple thereof. The aggregate Original
Principal Amount of Securities outstanding at any time may not exceed the amount
set forth in the first sentence of this paragraph, subject to the parenthetical
set forth therein, except as provided in Section 2.06.

     Section 2.03. Registrar, Paying Agent, Conversion Agent and Calculation
Agent. The Company shall maintain an office or agency where Securities may be
presented for registration of transfer or for exchange ("Registrar"), an office
or agency where Securities may be presented for purchase or payment ("Paying
Agent") and an office or agency where Securities may be presented for conversion
("Conversion Agent"). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Company may have one or more co-registrars,
one or more additional paying agents and one or more additional conversion
agents. The term Paying Agent includes any additional paying agent and the term
Conversion Agent includes any additional conversion agent.

     The Company shall also appoint an agent to perform the calculations
required pursuant to this Indenture (the "Calculation Agent").

                                       15

<PAGE>

     The Company shall notify the Trustee of the name and address of any such
agent. If the Company fails to maintain a Registrar, Paying Agent, Calculation
Agent or Conversion Agent, the Trustee shall act as such and shall be entitled
to appropriate compensation therefor pursuant to Section 5.06. The Company or
any Subsidiary or an Affiliate of either of them may act as Paying Agent,
Registrar, Calculation Agent, Conversion Agent or co-registrar.

     The Company initially appoints the Trustee as Registrar, Conversion Agent,
Calculation Agent and Paying Agent in connection with the Securities.

     Section 2.04. Paying Agent to Hold Money and Securities in Trust. Except as
otherwise provided herein, on or prior to each due date of payments in respect
of any Security, the Company shall deposit with the Paying Agent a sum of money
(in immediately available funds if deposited on the due date) or, if applicable,
Common Stock sufficient to make such payments when so becoming due. The Company
shall require each Paying Agent (other than the Trustee) to agree in writing
that the Paying Agent shall hold in trust for the benefit of Holders and/or the
Trustee all money and Common Stock held by the Paying Agent for the making of
payments in respect of the Securities and shall notify the Trustee of any
default by the Company in making any such payment. At any time during the
continuance of any such default, the Paying Agent shall, upon the written
request of the Trustee, forthwith pay to the Trustee all money and Common Stock
so held in trust. If the Company, a Subsidiary or an Affiliate of either of them
acts as Paying Agent, it shall segregate the money and Common Stock held by it
as Paying Agent and hold it as a separate trust fund. The Company at any time
may require a Paying Agent to pay all money and Common Stock held by it to the
Trustee and to account for any funds and Common Stock disbursed by it. Upon
doing so, the Paying Agent shall have no further liability for the money or
Common Stock.

     Section 2.05. Transfer and Exchange. (a) Subject to Section 2.11 hereof,
upon surrender for registration of transfer of any Security, together with a
written instrument of transfer satisfactory to the Registrar duly executed by
the Holder or such Holder's attorney duly authorized in writing, at the office
or agency of the Company designated as Registrar or co-registrar pursuant to
Section 2.03, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Securities of any authorized denomination or denominations, of a like
aggregate Original Principal Amount. The Company shall not charge a service
charge for any registration of transfer or exchange, but the Company and the
Registrar may require payment of a sum sufficient to pay all taxes, assessments
or other governmental charges that may be imposed in connection with the
transfer or exchange of the Securities from the Holder requesting such transfer
or exchange.

                                       16

<PAGE>

     The Company shall not be required to make, and the Registrar need not
register, transfers or exchanges of Securities selected for redemption (except,
in the case of Securities to be redeemed in part, the portion thereof not to be
redeemed) or any Securities in respect of which a Purchase Notice or Change in
Control Purchase Notice has been given and not withdrawn by the Holder thereof
in accordance with the terms of this Indenture (except, in the case of
Securities to be purchased in part, the portion thereof not to be purchased) or
any Securities for a period of 15 days before the mailing of a notice of
redemption of Securities to be redeemed.

     (b) Notwithstanding any provision to the contrary herein, so long as a
Global Security remains outstanding and is held by or on behalf of the
Depositary, transfers of a Global Security, in whole or in part, shall be made
only in accordance with Section 2.11 and this Section 2.05(b). Transfers of a
Global Security shall be limited to transfers of such Global Security in whole,
or in part, to nominees of the Depositary or to a successor of the Depositary or
such successor's nominee.

     (c) Successive registrations and registrations of transfers and exchanges
as aforesaid may be made from time to time as desired, and each such
registration shall be noted on the register for the Securities.

     (d) Any Registrar appointed pursuant to Section 2.03 hereof shall provide
to the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon transfer or
exchange of Securities.

     (e) No Registrar shall be required to make registrations of transfer or
exchange of Securities during any periods designated in the text of the
Securities or in this Indenture as periods during which such registration of
transfers and exchanges need not be made.

     (f) If Securities are issued upon the transfer, exchange or replacement of
Securities subject to restrictions on transfer and bearing the legends on the
form of Security attached hereto as Annex A setting forth such restrictions
(collectively, the "Legend"), or if a request is made to remove the Legend on a
Security, the Securities so issued shall bear the Legend, or the Legend shall
not be removed, as the case may be, unless there is delivered to the Company and
the Registrar such satisfactory evidence, which shall include an Opinion of
Counsel, as may be reasonably required by the Company and the Registrar, that
neither the Legend nor the restrictions on transfer set forth therein are
required to ensure that transfers thereof comply with the provisions of Rule
144A or Rule 144 under the Securities Act or that such Securities are not
"restricted" within the meaning of Rule 144 under the Securities Act. Upon (i)
provision of such satisfactory evidence, or (ii) notification by the Company to
the Trustee and

                                       17

<PAGE>

Registrar of the sale of such Security pursuant to a registration statement that
is effective at the time of such sale, the Trustee, at the written direction of
the Company, shall authenticate and deliver a Security that does not bear the
Legend. If the Legend is removed from the face of a Security and the Security is
subsequently held by an Affiliate of the Company, the Legend shall be
reinstated. Any shares of Common Stock issued upon conversion of Securities that
bear the Legend shall bear a restricted legend substantially identical to the
Legend (except that such Legend shall not refer to any shares of Common Stock
issuable upon conversion of Securities).

     (g) Nothing in this Indenture or in the Securities shall prohibit the sale
or other transfer of any Securities (including beneficial interests in Global
Securities) to the Company or any of its Subsidiaries, which Securities shall
thereupon be canceled in accordance with Section 2.09 of this Indenture.

     Section 2.06. Replacement Securities. If (a) any mutilated Security is
surrendered to the Trustee, or (b) the Company and the Trustee receive evidence
to their satisfaction of the destruction, loss or theft of any Security, and
there is delivered to the Company and the Trustee such security or indemnity as
may be required by them to save each of them harmless, then, in the absence of
notice to the Company or the Trustee that such Security has been acquired by a
bona fide purchaser, the Company shall execute and upon its written request the
Trustee shall authenticate and deliver, in exchange for any such mutilated
Security or in lieu of any such destroyed, lost or stolen Security, a new
Security of like tenor and Original Principal Amount, bearing a number not
contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Security has become
or is about to become due and payable, or is about to be purchased by the
Company pursuant to Articles 12 or 13 hereof, the Company in its discretion may,
instead of issuing a new Security, pay or purchase such Security, as the case
may be.

     Upon the issuance of any new Securities under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee) connected therewith.

     Every new Security issued pursuant to this Section in lieu of any
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

                                       18

<PAGE>

     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 Securities.

     Section 2.07. Outstanding Securities; Determinations of Holders' Actions.
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those delivered to it pursuant to Section 2.06 and those described in this
Section 2.07 as not outstanding. A Security does not cease to be outstanding
because the Company or an Affiliate thereof holds the Security; provided,
however, that in determining whether the Holders of the requisite Original
Principal Amount of Securities have given or concurred in any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned
by the Company or any other obligor upon the Securities or any Affiliate of the
Company or such other obligor shall be disregarded and deemed not to be
outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Subject to the foregoing,
only Securities outstanding at the time of such determination shall be
considered in any such determination (including, without limitation,
determinations pursuant to Articles 4 and 8).

     If a Security is replaced pursuant to Section 2.06, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

     If the Paying Agent holds, in accordance with this Indenture, on a
Redemption Date, or on the Business Day following a Purchase Date, a Remarketing
Purchase Date or a Change in Control Purchase Date, or on Stated Maturity, money
or securities, if permitted hereunder, sufficient to pay Securities payable on
that date, then immediately after such Redemption Date, Purchase Date, Change in
Control Purchase Date or Stated Maturity, as the case may be, such Securities
shall cease to be outstanding and interest (including Contingent Interest and
Liquidated Damages, if any) on such Securities shall cease to accrue; provided,
that if such Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made.

     If a Security is converted in accordance with Article 11, then from and
after the time of conversion on the Conversion Date, such Security shall cease
to be outstanding and interest (including Contingent Interest, if any) shall
cease to accrue on such Security.

                                       19

<PAGE>

     Section 2.08. Temporary Securities. Pending the preparation of definitive
Securities, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities.

     If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at the office
or agency of the Company designated for such purpose pursuant to Section 2.03,
without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like Original Principal Amount
of definitive Securities of authorized denominations. Until so exchanged the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.

     Section 2.09. Cancellation. All Securities surrendered for payment,
purchase by the Company pursuant to Article 12, Article 13 and Section 16.04,
conversion, redemption or registration of transfer or exchange shall, if
surrendered to any person other than the Trustee, be delivered to the Trustee
and shall be promptly canceled by it. The Company may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and all
Securities so delivered shall be promptly canceled by the Trustee. The Company
may not issue new Securities to replace Securities it has paid or delivered to
the Trustee for cancellation or that any Holder has converted pursuant to
Article 11. No Securities shall be authenticated in lieu of or in exchange for
any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall
be disposed of by the Trustee in accordance with its customary practice.

     Section 2.10. Persons Deemed Owners. Prior to due presentment of a Security
for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of
principal of the Security or the payment of any Redemption Price, Purchase
Price, Remarketing Purchase Price or Change in Control Purchase Price in respect
thereof, and interest thereon, for the purpose of conversion and for all other
purposes whatsoever, whether or not such Security be overdue, and neither

                                       20

<PAGE>

the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

     None of the Company, the Trustee, any Paying Agent or the Registrar shall
have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests in a Global
Security or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interests and they shall be protected in acting or
refraining from acting on any such information provided by the Depositary.

     Section 2.11. Global Securities.

     (a) Notwithstanding any other provisions of this Indenture or the
Securities, transfers of a Global Security, in whole or in part, shall be made
only in accordance with Section 2.05 and this Section 2.11. A Global Security
may not be transferred, in whole or in part, to any Person other than the
Depositary or a nominee or any successor thereof, and no such transfer to any
such other Person may be registered; provided that this clause (a) shall not
prohibit any transfer of a Security that is issued in exchange for a Global
Security but is not itself a Global Security. No transfer of a Security to any
Person shall be effective under this Indenture unless and until such Security
has been registered in the name of such Person.

     (b) Notwithstanding any other provisions of this Indenture or the
Securities, a Global Security shall not be exchanged in whole or in part for a
Security registered in the name of any Person other than the Depositary or one
or more nominees thereof, provided that a Global Security may be exchanged for
Securities registered in the names of any person designated by the Depositary in
the event that the Depositary has notified the Company that it is unwilling or
unable to continue as Depositary for such Global Security or such Depositary has
ceased to be a "clearing agency" registered under the Exchange Act, and a
successor Depositary is not appointed by the Company within 90 days, (ii) the
Company decides to discontinue the use of the system of book-entry transfer
through the Depositary (or any successor Depositary) or an Event of Default has
occurred and is continuing with respect to the Securities. Any Global Security
exchanged pursuant to clause (i) above shall be so exchanged in whole and not in
part, and any Global Security exchanged pursuant to clause (iii) above may be
exchanged in whole or from time to time in part as directed by the Depositary.
Any Security issued in exchange for a Global Security or any portion thereof
shall be a Global Security; provided that any such Security so issued that is
registered in the name of a Person other than the Depositary or a nominee
thereof shall not be a Global Security.

     (c) Securities issued in exchange for a Global Security or any portion
thereof shall be issued in definitive, fully registered form, without interest

                                       21

<PAGE>

coupons, shall have an aggregate Original Principal Amount equal to that of such
Global Security or portion thereof to be so exchanged, shall be registered in
such names and be in such authorized denominations as the Depositary shall
designate and shall bear the applicable Legends provided for herein. Any Global
Security to be exchanged in whole shall be surrendered by the Depositary to the
Trustee or the Registrar. With regard to any Global Security to be exchanged in
part, either such Global Security shall be so surrendered for exchange or, if
the Trustee is acting as custodian for the Depositary or its nominee with
respect to such Global Security, the Original Principal Amount thereof shall be
reduced, by an amount equal to the portion thereof to be so exchanged, by means
of an appropriate adjustment made on the records of the Trustee. Upon any such
surrender or adjustment, the Trustee shall authenticate and deliver the Security
issuable on such exchange to or upon the order of the Depositary or an
authorized representative thereof.

     (d) Subject to the provisions of Section 2.11(f) below, the registered
Holder may grant proxies and otherwise authorize any Person, including Agent
Members (as defined below) and persons that may hold interests through Agent
Members, to take any action which a Holder is entitled to take under this
Indenture or the Securities.

     (e) In the event of the occurrence of any of the events specified in
Section 2.11(b) above, the Company will promptly make available to the Trustee a
reasonable supply of certificated Securities in definitive, fully registered
form, without interest coupons.

     (f) Neither any members of, or participants in, the Depositary
(collectively, the "Agent Members") nor any other Persons on whose behalf Agent
Members may act shall have any rights under this Indenture with respect to any
Global Security registered in the name of the Depositary or any nominee thereof,
or under any such Global Security, and the Depositary or such nominee, as the
case may be, may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the absolute owner and holder of such Global Security
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company or the Trustee or any agent of the Company or the Trustee
from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or such nominee, as the case may be, or impair, as
between the Depositary, its Agent Members and any other person on whose behalf
an Agent Member may act, the operation of customary practices of such Persons
governing the exercise of the rights of a holder of any Security.

     Section 2.12. Legends.

     (a) Subject to the succeeding paragraph, every Security shall be subject to
the restrictions on transfer provided in the Legend including the

                                       22

<PAGE>

delivery of a certification or an Opinion of Counsel as set forth in the Legend,
if so requested by the Company or the Registrar.

     (b) The restrictions imposed by the Legend upon the transferability of any
Security shall cease and terminate when such Security has been sold pursuant to
an effective registration statement under the Securities Act or transferred in
compliance with Rule 144 under the Securities Act (or any successor provision
thereto) or, if earlier, upon the expiration of the holding period applicable to
sales thereof under Rule 144(k) under the Securities Act (or any successor
provision). Any Security as to which such restrictions on transfer shall have
expired in accordance with their terms or shall have terminated may, upon a
surrender of such Security for exchange to the Registrar in accordance with the
provisions of this Section 2.12 (accompanied, in the event that such
restrictions on transfer have terminated by reason of a transfer in compliance
with Rule 144 or any successor provision, by an opinion of counsel having
substantial experience in practice under the Securities Act and otherwise
reasonably acceptable to the Company, addressed to the Company and the Registrar
and in form acceptable to the Company, to the effect that the transfer of such
Security has been made in compliance with Rule 144 or such successor provision),
be exchanged for a new Security, of like tenor and aggregate Original Principal
Amount, which shall not bear the restrictive Legend. The Company shall inform
the Trustee of the effective date of any registration statement registering the
Securities under the Securities Act. The Trustee and the Registrar shall not be
liable for any action taken or omitted to be taken by it in good faith in
accordance with the aforementioned opinion of counsel or registration statement.

     (c) As used in the preceding two paragraphs of this Section 2.12, the term
"transfer" encompasses any sale, pledge, transfer, hypothecation or other
disposition of any Security.

     Section 2.13. Payment of Interest; Interest Rights Preserved. Interest,
including any Contingent Interest, on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest at the office or agency of the Company maintained for such
purpose pursuant to Section 9.02. However, the Company may make such interest
payments by check payable to or upon the written order of the Person entitled
thereto pursuant to Section 18.03, to the address of such Person as it appears
on the Security Register; provided that payment by wire transfer of immediately
available funds will be required with respect to principal of and interest
(including Contingent Interest, if any) on all Global Securities and all
Securities of Holders of more than $25,000,000 aggregate Original Principal
Amount of

                                       23

<PAGE>

Securities that have requested such method of payment and provided wire transfer
instructions to the Company or the Paying Agent.

     Any interest or Contingent Interest on any Security of which is payable but
is not punctually paid or duly provided for on any Interest Payment Date (herein
called "Defaulted Interest") shall forthwith cease to be payable to the Holder
on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (a) or (b) below:

     (a) The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Securities (or Predecessor Securities) are registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company
shall notify the Trustee in writing of the amount of Defaulted Interest proposed
to be paid on each Security and the date of the proposed payment, and at the
same time the Company shall deposit with the Trustee an amount of money equal to
the aggregate amount proposed to be paid in respect of such Defaulted Interest
or shall make arrangements satisfactory to the Trustee for such deposit on or
prior to the date of the proposed payment, such money when deposited to be held
in trust for the benefit of the Persons entitled to such Defaulted Interest as
in this clause provided. Thereupon the Trustee shall fix a Special Record Date
for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less
than 10 days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall promptly notify the Company of such Special Record
Date and, in the name and at the expense of the Company, shall cause notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder of Securities
at his address as it appears in the Security Register, not less than 10 days
prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities (or Predecessor Securities) are registered at the close of business
on such Special Record Date (notwithstanding the cancellation of such Securities
upon any transfer or exchange subsequent to such Special Record Date and prior
to such payment) and shall no longer be payable pursuant to the following clause
(b).

     (b) The Company may make payment of any Defaulted Interest on the
Securities in any other lawful manner not inconsistent with the requirements of
any securities exchange on which such Securities may be listed, and upon such
notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.

                                       24

<PAGE>

     On conversion of a Holder's Securities, such Holder shall not receive any
cash payment of interest. Except as set forth in the next succeeding paragraph,
the Company's delivery to a Holder of the full number of shares of Common Stock
into which a Security is convertible, together with any cash payment for such
Holder's fractional shares, or cash or a combination of cash and Common Stock in
lieu thereof, shall be deemed to satisfy the Company's obligation to pay the
Accreted Principal Amount of the Security and to satisfy the Company's
obligation to pay accrued but unpaid interest (including Contingent Interest, if
any) attributable to the period from the most recent Interest Payment Date
through the Conversion Date.

     Notwithstanding the above, if any Securities are converted during the
period from the close of business on any Regular Record Date immediately
preceding any Interest Payment Date to the close of business on the Business Day
immediately preceding such Interest Payment Date, such Securities shall be
accompanied by payment to the Company or its order, in New York Clearing House
funds or other funds acceptable to the Company, of an amount equal to the
interest payable on such Interest Payment Date with respect to the Original
Principal Amount of Securities or portions thereof being surrendered for
conversion; provided that no such payment need be made if (1) the Company has
specified a Redemption Date that occurs during the period from the close of
business on a Regular Record Date to the close of business on the Business Day
immediately preceding the Interest Payment Date to which such Regular Record
Date relates, (2) the Company has specified a Change in Control Purchase Date
during such period or (3) only to the extent of overdue interest or overdue
Contingent Interest, any overdue interest or overdue Contingent Interest exists
on the Conversion Date with respect to the Securities converted.

     Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.

     Section 2.14. CUSIP Numbers. The Company in issuing the Securities may use
"CUSIP" numbers (if then generally in use), and, if so, the 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 Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the CUSIP numbers.

     Section 2.15. Calculation of Tax Original Issue Discount. The Company
agrees, and by acceptance of a beneficial interest in a Security each

                                       25

<PAGE>

Holder and any beneficial owner of a Security shall be deemed to agree, to
treat, for United States federal income tax purposes, the Securities as debt
instruments that are subject to Treasury regulation section 1.1275-4(b) or any
successor provision (the "contingent payment regulations"). For United States
federal income tax purposes, the Company agrees, and by acceptance of a
beneficial interest in a Security each Holder and any beneficial owner of a
Security shall be deemed to agree, to treat the fair market value of the Common
Stock received upon the conversion of a Security as a contingent payment for
purposes of the contingent payment regulations, and to accrue interest with
respect to outstanding Securities as original issue discount for United States
federal income tax purposes (i.e., Tax Original Issue Discount) according to the
"noncontingent bond method," set forth in the contingent payment regulations,
using the comparable yield of 6.25% compounded semi-annually, and the projected
payment schedule determined by the Company pursuant to the contingent payment
regulations (attached hereto as Annex B). Holders or beneficial owners may
obtain the issue price, amount of Tax Original Issue Discount, issue date, yield
to maturity, comparable yield and projected payment schedule, by submitting a
written request for it to the Company at the following address: American Express
Company, 200 Vesey Street, New York, New York 10285, Attention: Secretary.

     The Company acknowledges and agrees, and by acceptance of a beneficial
interest in a Security each Holder and any beneficial owner of a Security shall
be deemed to acknowledge and agree, that (i) the comparable yield described in
the preceding paragraph means the annual yield the Company would pay, as of the
Issue Date, on a nonconvertible fixed-rate debt instrument with no contingent
payments, but with terms and conditions otherwise similar to those of the
Securities and (ii) the comparable yield and the schedule of projected payments
described above do not constitute a representation by the Company regarding the
actual amounts that will be paid on the Securities or the value of the Common
Stock into which the Securities may be converted.

                                   ARTICLE 3
                           SATISFACTION AND DISCHARGE

     Section 3.01. Discharge of Liability on Securities. When (i) the Company
delivers to the Trustee or any Paying Agent all outstanding Securities (other
than Securities replaced pursuant to Section 2.06 of the Indenture) for
cancellation or (ii) all outstanding Securities have become due and payable,
whether at Stated Maturity, any Redemption Date, any Purchase Date, any
Remarketing Purchase Date, a Change in Control Purchase Date, or upon conversion
or otherwise, and the Company deposits with the Trustee, any Paying Agent or the
Conversion Agent, if applicable, cash or, if expressly permitted by

                                       26

<PAGE>

the terms of the Securities, Common Stock sufficient to pay all amounts due and
owing on all outstanding Securities (other than Securities replaced pursuant to
Section 2.06), and if in either case the Company pays all other sums payable
hereunder by the Company, then this Indenture shall, subject to Section 5.06,
cease to be of further effect, except for the indemnification of the Trustee,
which shall survive such satisfaction and discharge. The Trustee shall join in
the execution of a document prepared by the Company acknowledging satisfaction
and discharge of this Indenture on demand of the Company accompanied by an
Officers' Certificate and Opinion of Counsel and at the reasonable cost and
expense of the Company. Notwithstanding the satisfaction and discharge of this
Indenture with respect to the Securities, the obligations of the Company with
respect to the Trustee for the Securities shall survive.

     Section 3.02. Repayment of Moneys Held by Trustee. Any moneys deposited
with the Trustee or any Paying Agent for the payment of the principal of or
interest on any Security and not applied but remaining unclaimed by the Holders
for two years after the date upon which the principal of or interest on such
Security shall have become due and payable, shall be repaid to the Company by
the Trustee or such Paying Agent on demand; and the Holder of any of the
Securities entitled to receive such payment shall thereafter look only to the
Company for the payment thereof and all liability of the Trustee or such Paying
Agent with respect to such moneys shall thereupon cease.

                                    ARTICLE 4
                                    REMEDIES

     Section 4.01. Events of Default. "Event of Default", wherever used herein
with respect to the Securities, 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, pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any administrative or
governmental body):

          (a) a default in the payment of all or any part of the Accreted
     Principal Amount, Redemption Price, Purchase Price, Remarketing Purchase
     Price or Change in Control Purchase Price (in each case including any
     accrued Contingent Accretion) with respect to any Security when such
     payment becomes due and payable pursuant to the terms hereof; or

          (b) default in the payment of any interest (including Contingent
     Interest and Liquidated Damages, if any) upon any Security when it becomes
     due and payable, and continuance of such default for a period of 30 days;
     or

                                       27

<PAGE>

          (c) default in the performance, or breach, of any covenant or warranty
     of the Company in this Indenture (other than a covenant or warranty a
     default in whose performance or whose breach is elsewhere in this Section
     specifically dealt with), and continuance of such default or breach for a
     period of 90 days after there as been given by registered or certified
     mail, to the Company by the Trustee, or to the Company and the Trustee by
     the Holders of at least 25% in aggregate Original Principal Amount of the
     Securities then outstanding a written notice specifying such default or
     breach and requiring it to be remedied and stating that such notice is a
     "Notice of Default" hereunder, or

          (d) an event of default under any indebtedness of the Company for
     borrowed money which (x) results in the acceleration of such indebtedness
     prior to its express maturity, (y) the principal amount of any such
     indebtedness, together with the principal amount of any other such
     indebtedness the maturity of which has been so accelerated, aggregates $50
     million or more and (z) such acceleration has not been rescinded or
     annulled within 10 days after there has been given, to the Company by the
     Trustee, or to the Company and the Trustee by Holders of at least 25% in
     aggregate Original Principal Amount of the Securities then outstanding, a
     written notice specifying such default and breach and requiring it to be
     remedied and stating that such notice is a "Notice of Default" hereunder,
     or

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

          (f) the commencement by the Company of a voluntary case or proceeding
     under any applicable federal or state bankruptcy, insolvency,
     reorganization or other similar law or of any other case or proceeding to
     be adjudicated a bankrupt or insolvent, or the consent by it to the entry
     of a decree or order for relief in respect of the Company in an involuntary
     case or proceeding under any applicable federal or state bankruptcy,
     insolvency, reorganization or other similar law or to the

                                       28

<PAGE>

     commencement of any bankruptcy or insolvency case or proceeding against it,
     or the filing by it of a petition or answer or consent seeking
     reorganization or relief under any applicable federal or State law, or the
     consent by it to the filing of such petition or to the appointment of or
     taking possession by a custodian, receiver, liquidator, assignee, trustee,
     sequestrator or similar official of the Company or of any substantial part
     of its property, or the making by it of an assignment for the benefit of
     creditors, or the admission by it in writing of its inability to pay its
     debts generally as they become due, or the taking of corporate action by
     the Company in furtherance of any such action.

     Section 4.02. Acceleration of Maturity; Rescission and Annulment. (a) If an
Event of Default occurs and is continuing, the Trustee by notice to the Company
or the Holders of at least 25% in aggregate Original Principal Amount of the
Securities at the time outstanding by written notice to the Company and the
Trustee, may declare the Accreted Principal Amount of the Securities through the
date of such declaration, any accrued Contingent Accretion, and any accrued and
unpaid interest (including Contingent Interest and Liquidated Damages, if any)
through the date of such declaration, on all the Securities to be immediately
due and payable. Upon such a declaration, such Accreted Principal Amount, such
accrued Contingent Accretion, and such accrued and unpaid interest (including
Contingent Interest and Liquidated Damages, if any) shall be due and payable
immediately.

     At any time after such a declaration of acceleration with respect to
Securities has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter in this Article
provided, the Holders of a majority in Original Principal Amount of the
Securities then outstanding, by written notice to the Company and the Trustee,
may waive all defaults with respect to the Securities and rescind and annul such
declaration and its consequences if

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

               (A) all overdue interest (including Contingent Interest and
          Liquidated Damages, if any) on all Securities,

               (B) the Accreted Principal Amount of the Securities and any
          accrued Contingent Accretion that have become due otherwise than by
          such declaration of acceleration and interest thereon at the overdue
          rate or rates prescribed therefor in such Securities or, if no such
          rate or rates are so prescribed, at the rate of cash interest borne by
          the Securities during the period of such default, or if such default
          is after December 1, 2006 and the

                                       29

<PAGE>

          Securities are not then bearing cash interest, the Applicable Yield of
          the Securities during the period of such default,

               (C) to the extent that payment of such interest is enforceable
          under applicable law, interest upon overdue interest or overdue
          Contingent Interest to the date of such payment or deposit at the
          overdue rate or rates prescribed therefor in such Securities or, if no
          such rate or rates are so prescribed, at the rate of cash interest
          borne by the Securities during the period of such default, or if such
          default is after December 1, 2006 and the Securities are not then
          bearing cash interest, the Applicable Yield of the Securities during
          the period of such default, and

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

     and

          (ii) all Events of Default with respect to the Securities, other than
     any non-payment of the Accreted Principal Amount and any accrued Contingent
     Accretion of the Securities that have become due solely by such declaration
     of acceleration, have been cured or waived as provided in Section 4.13.

     No such waiver or rescission and annulment shall affect any subsequent
default or impair any right consequent thereon.

     Section 4.03. Collection of Indebtedness and Suits for Enforcement by
Trustee. The Company covenants that (i) in case default shall be made in the
payment of any installment of interest (including Contingent Interest and
Liquidated Damages, if any) on any Security, as and when the same shall become
due and payable, and such default shall have continued for a period of 30 days,
or (ii) in case default shall be made in the payment of the Accreted Principal
Amount of any Security or any accrued Contingent Accretion when the same becomes
due in accordance with the terms thereof then, upon demand of the Trustee, the
Company will pay to the Trustee, for the benefit of the Holders of such
Securities, the whole amount that then shall have become due and payable on all
such Securities for principal (including accrued Contingent Accretion, if any)
or interest (including Contingent Interest and Liquidated Damages, if any), or
both, as the case may be, with interest upon the overdue principal and (to the
extent that payment of such interest is enforceable under applicable law) upon
overdue installments of interest at the rate, or overdue rate, if any, borne by
the Securities during the period of such default; and, in addition

                                       30

<PAGE>

thereto, such further amount as shall be sufficient to cover reasonable costs of
the Trustee, its agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Trustee except as a result
of its own negligence or willful misconduct.

     If an Event of Default with respect to Securities occurs and is continuing,
the Trustee may in its discretion proceed to protect and enforce its rights and
the rights of the Holders of the Securities by such appropriate judicial
proceedings as the Trustee shall deem necessary 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.

     Section 4.04. Trustee May File Proofs of Claim. In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Securities or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective
of whether the Accreted Principal Amount, Redemption Price, Purchase Price,
Remarketing Purchase Price, Change in Control Purchase Price (including accrued
Contingent Accretion, if any) or interest (including Contingent Interest and
Liquidated Damages, if any) in respect of the Securities shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand on the Company for the payment of
any such amount) shall be entitled and empowered, by intervention in such
proceeding or otherwise,

          (i) to file and prove a claim for the entire Accreted Principal
     Amount, Redemption Price, Purchase Price, Remarketing Purchase Price,
     Change in Control Purchase Price (including accrued Contingent Accretion,
     if any) and interest (including Contingent Interest and Liquidated Damages,
     if any) owing and unpaid in respect of the Securities and to file such
     other papers or documents as may be necessary or advisable in order to have
     the claims of the Trustee (including any claim for the reasonable costs,
     expenses, disbursements and advances of the Trustee, its agents and
     counsel) and of the Holders allowed in such judicial proceeding; and

          (ii) to collect and receive any moneys or other property payable or
     deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to

                                       31

<PAGE>

the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 5.06.

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

     Section 4.05. Trustee May Enforce Claims without Possession of Securities.
All rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable costs, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Securities in respect of which such judgment has been recovered.

     Section 4.06. Application of Money Collected. Any money collected by the
Trustee pursuant to this Article shall be applied in the following order:

          FIRST: To the payment of all amounts due the Trustee under Section
     5.06;

          SECOND: To the payment of the amounts then due and unpaid for Accreted
     Principal Amount, Redemption Price, Purchase Price, Remarketing Purchase
     Price, Change in Control Purchase Price (in each case, including accrued
     Contingent Accretion, if any) and interest (including Contingent Interest
     and Liquidated Damages, if any) on the Securities in respect of which or
     for the benefit of which such money has been collected, ratably, without
     preference or priority of any kind, according to the amounts due and
     payable on such Securities; and

          THIRD: To the payment of the remainder, if any, to the Company or as a
     court of competent jurisdiction may direct.

     Section 4.07. Limitation on Suits. No Holder of any Security shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless

                                       32

<PAGE>

          (i) such Holder shall have previously given written notice to the
     Trustee of a continuing Event of Default with respect to the Securities;

          (ii) the Holders of not less than 25% in aggregate Original Principal
     Amount of the outstanding Securities shall have made written request to the
     Trustee to institute proceedings in respect of such Event of Default in its
     own name as Trustee hereunder;

          (iii) such Holder or Holders shall have offered to the Trustee
     reasonable indemnity satisfactory to it as it may require against the
     losses, liabilities and expenses to be incurred in compliance with such
     request;

          (iv) the Trustee for 60 days after its receipt of such notice, request
     and offer of indemnity shall have failed to institute any such proceeding;
     and

          (v) no direction inconsistent with such written request shall have
     been given to the Trustee pursuant to Section 4.12 during such 60-day
     period by the Holders of a majority in Original Principal Amount of the
     outstanding Securities;

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

     Section 4.08. Unconditional Right of Holders To Receive Principal and
Interest. Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the Accreted Principal Amount, Redemption Price, Purchase
Price, Remarketing Purchase Price, Change in Control Purchase Price (in each
case, including accrued Contingent Accretion, if any) and interest (including
Contingent Interest and Liquidated Damages, if any) on such Security after the
respective due dates expressed in such Security, to convert the Securities in
accordance with Article 11, and to institute suit for the enforcement of any
such payment on or after such respective dates, and such rights shall not be
impaired without the consent of such Holder.

     Section 4.09. Restoration of Right and Remedies. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this

                                       33

<PAGE>

Indenture and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to the Trustee or to such Holder, then and in
every such case, subject to any determination in such proceeding, the Company,
the Trustee and the Holders shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.

     Section 4.10. Rights and Remedies Cumulative. Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities in the last paragraph of Section 2.06, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders 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 4.11. Delay or Omission Not Waiver. No delay or omission of the
Trustee or of any Holder of any Securities to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

     Section 4.12. Control by Holders. The Holders of a majority in aggregate
Original Principal Amount of the outstanding Securities shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee, with respect to the Securities; provided, however, that

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

          (ii) the Trustee may take any other action deemed proper by the
     Trustee which is not inconsistent with such direction,

          (iii) such direction is not unduly prejudicial to the rights of
     Holders not taking part in such direction, and

          (iv) such direction would not involve the Trustee in personal
     liability, as the Trustee, upon being advised by counsel, shall reasonably
     determine.

                                       34

<PAGE>

     Section 4.13. Waiver of Past Defaults. The Holders of at least a majority
in aggregate Original Principal Amount of the outstanding Securities may on
behalf of the Holders of all the Securities by notice to the Trustee waive any
past default hereunder with respect to such Securities and its consequences,
except a Default:

          (i) that is an Event of Default described in Section 4.01(a) or (b);
     or

          (ii) in respect of a covenant or provision hereof which under Article
     8 cannot be modified or amended without the consent of the Holder of each
     outstanding Security; or

          (iii) that constitutes a failure to convert any Security in accordance
     with the terms of Article 11.

     Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture, and the Company, the Trustee and Holders 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
thereon.

     Section 4.14. Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Security by his acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken, suffered or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section shall
not apply to any suit instituted by the Company, to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in Original Principal Amount of the outstanding
Securities, or to any suit instituted by any Holder pursuant to Section 4.08.
This Section 4.14 shall be in lieu of Section 315(e) of the TIA and such Section
315(e) is hereby expressly excluded from this Indenture, as permitted by the
TIA.

     Section 4.15. Waiver of Stay or Extension Laws. The Company 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, which would prohibit or forgive the Company from paying all

                                       35

<PAGE>

or any portion of the Accreted Principal Amount, Redemption Price, Purchase
Price, Remarketing Purchase Price, Change in Control Purchase Price (in each
case, including accrued Contingent Accretion, if any) or interest (including
Contingent Interest and Liquidated Damages, if any) in respect of Securities, as
contemplated herein, or which may affect the covenants or the performance of
this Indenture; and the Company (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 Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

                                    ARTICLE 5
                                   THE TRUSTEE

     Section 5.01. Duties of Trustee. If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by
this Indenture and use the same degree of care and skill in its exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

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

          (i) the Trustee need perform only those duties that are specifically
     set forth in this Indenture and no others and no implied covenants or
     obligations shall be read into this Indenture against the Trustee; and

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

     This Section 5.01(b) shall be in lieu of Section 315(a) of the TIA and such
Section 315(a) is hereby expressly excluded from this Indenture, as permitted by
the TIA.

                                       36

<PAGE>

     (c) The Trustee shall not be relieved from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except
that:

          (i) this paragraph (c) does not limit the effect of paragraph (b) of
     this Section 5.01;

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

          (iii) the Trustee shall not be liable with respect to any action it
     takes or omits to take in good faith in accordance with a direction
     received by it pursuant to Section 4.02 and Section 4.12.

     Subparagraphs (c)(i), (ii) and (iii) shall be in lieu of Sections
315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections 315(d)(1),
315(d)(2) and 315(d)(3) are hereby expressly excluded from this Indenture, as
permitted by the TIA.

     (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section 5.01.

     (e) The Trustee may refuse to perform any duty or exercise any right or
power or extend or risk its own funds or otherwise incur any financial liability
unless it receives indemnity satisfactory to it against any loss, liability or
expense.

     (f) Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee (acting in
any capacity hereunder) shall be under no liability for interest on any money
received by it hereunder unless otherwise agreed in writing with the Company.

     Section 5.02. Rights of Trustee. Subject to its duties and responsibilities
under the TIA,

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

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

                                       37

<PAGE>

     (c) The Trustee may act through agents and attorneys and shall not be
responsible for the misconduct or negligence of any agent or attorney appointed
with due care.

     (d) Subject to the provisions of Section 5.01(c), the Trustee shall not be
liable for any action it takes or omits to take in good faith which it believes
to be authorized or within its rights or powers.

     (e) The Trustee may consult with counsel selected by it and any advice or
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it hereunder in good faith
and in accordance with such advice or Opinion of Counsel.

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

     (g) The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney
at the sole cost of the Company and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.

     (h) The Trustee shall not be liable for any action taken, suffered, or
omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Indenture.

     (i) The Trustee shall not be deemed to have notice of any Default or Event
of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless Holders of not less than 25% in aggregate Original Principal
Amount of the Securities then outstanding shall have provided written notice of
any event which is in fact such a default to the Trustee at the Corporate Trust
Office of the Trustee, and such notice references the Securities and this
Indenture.

                                       38

<PAGE>

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

     (k) The Trustee may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers' Certificate may be signed by any person authorized to sign an
Officers' Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

     Section 5.03. Individual Rights of Trustee. The Trustee in its individual
or any other capacity may become the owner or pledgee of Securities and may
otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee. Any Paying Agent, Registrar, Conversion Agent or
co-registrar may do the same with like rights. However, the Trustee must comply
with Sections 5.09 and 5.10.

     Section 5.04. Trustee's Disclaimer. The Trustee makes no representation as
to the validity or adequacy of this Indenture or the Securities, it shall not be
accountable for the Company's use or application of the proceeds from the
Securities, it shall not be responsible for any statement in the registration
statement for the Securities under the Securities Act or in the Indenture or the
Securities (other than its certificate of authentication), or the determination
as to which beneficial owners are entitled to receive any notices hereunder.

     Section 5.05. Notice of Defaults. If a Default occurs and if it is known to
the Trustee, the Trustee shall give to each Holder notice of the Default within
90 days after it occurs unless such Default shall have been cured or waived
before the giving of such notice. Except in the case of a Default described in
Section 4.01(b) or (a), the Trustee may withhold the notice if and so long as a
committee of its officers in good faith determines that withholding the notice
is in the interests of Holders. The second sentence of this Section 5.05 shall
be in lieu of the proviso to Section 315(b) of the TIA and such proviso is
hereby expressly excluded from this Indenture, as permitted by the TIA.

     Section 5.06. Compensation and Indemnity. The Company agrees:

     (a) to pay to the Trustee from time to time such reasonable compensation as
the Company and the Trustee shall from time to time agree in writing for all
services rendered by it hereunder (which compensation shall not

                                       39

<PAGE>

be limited (to the extent permitted by law) by any provision of law in regard to
the compensation of a trustee of an express trust);

     (b) to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture (including the reasonable compensation and the
expenses, advances and disbursements of its agents and counsel), except any such
expense, disbursement or advance as shall be determined to have been caused by
its own negligence or bad faith; and

     (c) to fully indemnify the Trustee and its agents for, and to hold them
harmless against, any loss, damage, claim, liability, cost or expense (including
reasonable attorneys' fees and expenses and taxes (other than taxes based upon,
measured by or determined by the income of the Trustee)) incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of this trust, including the costs and expenses of
defending itself against any claim (whether asserted by the Company, any Holder
or any other Person) or liability in connection with the exercise or performance
of any of its powers or duties hereunder.

     To secure the Company's payment obligations in this Section 5.06, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee, except that held in trust to pay the Accreted
Principal Amount, Redemption Price, Purchase Price, Remarketing Purchase Price,
Change in Control Purchase Price or interest, if any, as the case may be, on
particular Securities.

     The Company's payment obligations pursuant to this Section 5.06 shall
survive the discharge of this Indenture and resignation or removal of the
Trustee. When the Trustee incurs expenses after the occurrence of a Default
specified in Section 4.01(e) or Section 4.01(f), the expenses, including the
reasonable fees and expenses of its counsel, are intended to constitute expenses
of administration under any bankruptcy or insolvency law.

     Section 5.07. Replacement of Trustee. The Trustee may resign by so
notifying the Company; provided, however, no such resignation shall be effective
until a successor Trustee has accepted its appointment pursuant to this Section
5.07. The Holders of a majority in aggregate Original Principal Amount of the
Securities at the time outstanding may remove the Trustee by so notifying the
Trustee and the Company. The Company shall remove the Trustee if:

     (a) the Trustee fails to comply with Section 5.09;

     (b) the Trustee is adjudged bankrupt or insolvent;

                                       40

<PAGE>

     (c) a receiver or public officer takes charge of the Trustee or its
property; or

     (d) the Trustee otherwise becomes incapable of acting.

     In addition, the Company may remove the Trustee if the Company shall
determine by a Board Resolution that the services provided by the Trustee
hereunder may be obtained at a substantially lower cost to the Company.

     If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company satisfactory in form and substance to
the retiring Trustee and the Company. Thereupon the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee under this Indenture. The
successor Trustee shall mail a notice of its succession to Holders. The retiring
Trustee shall upon payment of its charges hereunder promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 5.06.

     If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee (at the expense of
the Company), the Company or the Holders of a majority in aggregate Original
Principal Amount of the Securities at the time outstanding may petition at the
expense of the Company any court of competent jurisdiction for the appointment
of a successor Trustee.

     If the Trustee fails to comply with Section 5.09 any Holder may petition
any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

     Section 5.08. Successor Trustee by Merger. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation, the resulting,
surviving or transferee corporation without any further act shall be the
successor Trustee; provided that such corporation shall otherwise be qualified
and eligible under this Article.

     Section 5.09. Eligibility; Disqualification. The Trustee shall at all times
satisfy the requirements of TIA Sections 310(a)(1) and 310(b). The Trustee shall
have a combined capital and surplus of at least $50,000,000 as set forth in its
most recent published annual report of condition. Nothing herein contained shall

                                       41

<PAGE>

prevent the Trustee from filing with the Commission the application referred to
in the penultimate paragraph of TIA Section 310(b).

     Section 5.10. Preferential Collection of Claims Against Company. The
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated therein.

     Section 5.11. Authenticating Agent.

     The Trustee may upon Company request appoint one or more authenticating
agents (including, without limitation, the Company or any Affiliate thereof)
which shall be authorized on behalf of the Trustee in authenticating Securities
in connection with the issue, delivery, registration of transfer, exchange,
partial redemption or repayment thereof (an "Authenticating Agent"). Wherever
reference is made in this Indenture to the authentication of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication on behalf of the Trustee by an Authenticating
Agent and a certificate of authentication executed on behalf of the Trustee by
an Authenticating Agent. Each Authenticating Agent must be acceptable to the
Company and must be a corporation organized and doing business under the laws of
the United States or of any State, having a combined capital and surplus of at
least $20,000,000, authorized under such laws to do a trust business and subject
to supervision or examination by Federal or State authorities or the equivalent
foreign authority in the case of an Authenticating Agent who is not organized
and doing business under the laws of the United States or of any State thereof
or the District of Columbia.

     Any corporation 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 Trustee
or such Authenticating Agent.

     An Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. 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 eligible in accordance with the
provisions of this Section, the Trustee promptly may appoint a successor
Authenticating Agent. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all rights, powers and duties of
its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

                                       42

<PAGE>

     The provisions of Sections 1.04, 1.08, 2.06, 2.09, 5.02, 5.03, 5.04, and
5.06 shall be applicable to any Authenticating Agent.

     Pursuant to each appointment made under this Section, the Securities may
have endorsed thereon, in lieu of the Trustee's certificate of authentication,
an alternate certificate of authentication in substantially the following form:

     This is one of the Securities described in the within-mentioned Indenture.

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

                                    By:
                                        ----------------------------------------
                                         As Authenticating Agent for the Trustee

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

                                    Dated
                                          --------------------------------------

                                   ARTICLE 6
                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

     Section 6.01. Company to Furnish Trustee Information as to Names and
Addresses of Holders. The Company covenants and agrees that it will furnish or
cause to be furnished to the Trustee:

     (a) Semi-annually, not later than June 1 and December 1 in each year,
commencing June 1, 2004, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of a date not more than 15
days prior to the time such list is furnished and

     (b) at such other times as the Trustee may request in writing, within 30
days after the receipt by the Company of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished;

provided, however, that so long as the Trustee is the Registrar, no such list
shall be required to be furnished.

                                       43

<PAGE>

     Section 6.02. Preservation of Information; Communications to Holders. (a).
The Trustee shall preserve, in as current a form as is reasonably practicable,
all information as to the names and addresses of the Holders of Securities (1)
contained in the most recent list furnished to it as provided in Section 6.01
and (2) received by it in the capacity of Paying Agent or Registrar (if so
acting) hereunder.

     The Trustee may destroy any list furnished to it as provided in Section
6.01 upon receipt of a new list so furnished.

     (b) In case three or more Holders of Securities (hereinafter called
"applicants") apply in writing to the Trustee, and furnish to the Trustee
reasonable proof that each such applicant has owned a Security of such series
for a period of at least six months preceding the date of such application, and
such application states that the applicants desire to communicate with other
Holders of Securities with respect to their rights under this Indenture or under
the Securities, and is accompanied by a copy of the form of proxy or other
communication which such applicants propose to transmit, then the Trustee shall,
within five business days after the receipt of such application, at its
election, either

          (i) afford such applicants access to the information preserved at the
     time by the Trustee in accordance with the provisions of subsection (a) of
     this Section 6.02, or

          (ii) inform such applicants as to the approximate number of Holders of
     Securities whose names and addresses appear in the information preserved at
     the time by the Trustee in accordance with the provisions of subsection (a)
     of this Section 6.02, and as to the approximate cost of mailing to such
     Holders the form of proxy or other communication, if any, specified in such
     application.

     If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Holder of Securities whose name and address appear in the
information preserved at the time by the Trustee in accordance with the
provisions of subsection (a) of this Section 6.02, a copy of the form of proxy
or other communication which is specified in such request, with reasonable
promptness after a tender to the Trustee of the material to be mailed and of
payment, or provision for the payment, of the reasonable expenses of mailing,
unless within five days after such tender the Trustee shall mail to such
applicants and file with the Commission, together with a copy of the material to
be mailed, a written statement to the effect that, in the opinion of the
Trustee, such mailing would be contrary to the best interests of the Holders of
Securities, or would be in violation of applicable law. Such written statement
shall specify the basis of such

                                       44

<PAGE>

opinion. If the Commission, after opportunity for a hearing upon the objections
specified in the written statement so filed, shall enter an order refusing to
sustain any of such objections or if, after the entry of an order sustaining one
or more of such objections, the Commission shall find, after notice and
opportunity for hearing, that all the objections so sustained have been met and
shall enter an order so declaring, the Trustee shall mail copies of such
material to all such Holders with reasonable promptness after the entry of such
order and the renewal of such tender; otherwise the Trustee shall be relieved of
any obligation or duty to such applicants respecting their application.

     (c) Each and every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
or any Registrar or any Paying Agent shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders
in accordance with the provisions of subsection (b) of this Section 6.02,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant
to a request made under said subsection (b).

     Section 6.03. Reports by Trustee. Within 60 days after each December 1
beginning with December 1, 2004, the Trustee shall mail to each Holder a brief
report dated as of such December 1 that complies with TIA Section 313(a), if
required by such Section 313(a). The Trustee also shall comply with TIA Section
313(b).

     A copy of each report at the time of its mailing to Holders shall be filed
with the Commission and each securities exchange, if any, on which the
Securities are listed. The Company agrees to promptly notify the Trustee
whenever the Securities become listed on any securities exchange and of any
delisting thereof.

     Section 6.04. Reports by Company. The Company shall file with the Trustee,
within 15 days after it files such annual and quarterly reports, information,
documents and other reports with the Commission, copies of its annual report and
of the information, documents and other reports (or copies of such portions of
any of the foregoing as the Commission may by rules and regulations prescribe)
which the Company is required to file with the Commission pursuant to Section 13
or 15(d) of the Exchange Act. In the event the Company is at any time no longer
subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, it shall continue to provide the Trustee with reports containing
substantially the same information as would have been required to be filed with
the Commission had the Company continued to have been subject to such reporting
requirements. In such event, such reports shall be provided at the times the
Company would have been required to provide reports

                                       45

<PAGE>

had it continued to have been subject to such reporting requirements. The
Company also shall comply with the other provisions of TIA Section 314(a).

     Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

     If at any time while any of the Securities are "restricted securities"
within the meaning of Rule 144, the Company is no longer subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company
will prepare and will furnish to any Holder, any beneficial owner of Securities
and any prospective purchaser of Securities designated by a Holder or a
beneficial owner of Securities, promptly upon request, the information required
pursuant to Rule 144A(d)(4) (or any successor thereto) under the Securities Act
in connection with the offer, sale or transfer of Securities.

                                   ARTICLE 7
                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

     Section 7.01. Consolidations and Mergers of Company Permitted Subject to
Certain Conditions. The Company shall not consolidate with or merge into any
other corporation or convey or transfer its properties and assets substantially
as an entirety to any Person, unless:

          (a) the corporation formed by such consolidation or into which the
     Company is merged or the Person which acquires by conveyance or transfer
     the properties and assets of the Company substantially as an entirety shall
     be a corporation organized and existing under the laws of the United States
     of America or any State thereof or the District of Columbia and shall
     expressly assume, by an indenture supplemental hereto, executed and
     delivered to the Trustee, in form satisfactory to the Trustee, the due and
     punctual payment of the Accreted Principal Amount, Redemption Price,
     Purchase Price, Remarketing Purchase Price or Change in Control Purchase
     Price with respect to any Security and any interest (including Contingent
     Interest and Liquidated Damages, if any) on all the Securities and the
     performance of every covenant of this Indenture on the part of the Company
     to be performed or observed;

          (b) immediately after giving effect to such transaction, no Event of
     Default, and no event which, after notice or lapse of time, or

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<PAGE>

     both, would become an Event of Default, shall have happened and be
     continuing; and

          (c) the Company has delivered to the Trustee an Officers' Certificate
     and an Opinion of Counsel each stating that such consolidation, merger,
     conveyance or transfer and such supplemental indenture comply with this
     Article and that all conditions precedent herein provided for relating to
     such transaction have been met.

     The provisions of this Section 7.01 shall not be applicable to a merger or
consolidation in which the Company is the surviving corporation.

     Section 7.02. Rights and Duties of Successor Entity. Upon any consolidation
with or merger into any other corporation, or any conveyance or transfer of the
properties and assets of the Company substantially as an entirety in accordance
with Section 7.01, the successor entity formed by such consolidation or into
which the Company is merged or to which such conveyance or transfer is made
shall succeed to, and be substituted for, and may exercise every right and power
of, the Company under this Indenture with the same effect as if such successor
had been named as the Company herein, and thereafter the Company (which term for
this purpose shall mean the Person named as the "Company" in the first paragraph
of this instrument or any successor entity which shall theretofore have become
such in the manner presented in this Article) shall be relieved of all
obligations and covenants under this Indenture and the Securities.

                                   ARTICLE 8
                             SUPPLEMENTAL INDENTURES

     Section 8.01. Supplemental Indentures Without Consent of Holders. Without
the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the TIA
as in force at the date of the execution thereof) for one or more of the
following purposes:

          (i) to evidence the succession of another corporation or entity to the
     Company, or successive successions, and the assumption by the successor
     corporation or entity of the covenants, agreements and obligations of the
     Company under this Indenture;

          (ii) to add to the covenants of the Company or to add additional
     rights for the benefit of the Holders of Securities or to surrender any
     right or power herein conferred upon the Company;

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<PAGE>

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

          (iv) to evidence and provide for the acceptance of appointment
     hereunder by a successor Trustee with respect to the Securities and to add
     to or change any of the provisions of this Indenture as shall be necessary
     to provide for or facilitate the administration of the trust hereunder;

          (v) to add any additional Events of Default for the benefit of the
     Holders of Securities;

          (vi) to secure the Securities; and

          (vii) to comply with any requirement of the Commission in connection
     with the qualification of the Indenture under the TIA.

     Any amendment described in clause (iii) above made solely to conform this
Indenture to the final offering memorandum provided to investors in connection
with the initial offering of the Securities by the Company will not be deemed to
materially and adversely affect the interests of Holders.

     The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance,
transfer, assignment, mortgage or pledge of any property thereunder.

     Any supplemental indenture authorized by the provisions of this Section
8.01 may be executed by the Company and the Trustee without the consent of the
Holders of any of the outstanding Securities, notwithstanding any of the
provisions of Section 8.02.

     Section 8.02. Supplemental Indentures with Consent of Holders. With the
consent of the Holders of at least a majority in Original Principal Amount of
the outstanding Securities, by Act of said Holders delivered to the Company and
the Trustee, the Company, when authorized by a Board Resolution, and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the TIA as in
force at the date of execution thereof) for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of

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<PAGE>

this Indenture or of any supplemental indenture or of modifying in any manner
the rights of the Holders of Securities; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
outstanding Security affected thereby:

          (i) change the maturity of any payment of Accreted Principal Amount
     (including any accrued Contingent Accretion) of, or any installment of
     interest (including the payment of Contingent Interest or Liquidated
     Damages, if any) on the Securities, or

          (ii) reduce the Original Principal Amount or Accreted Principal Amount
     thereof, or

          (iii) alter the manner or rate of accretion of Accreted Principal
     Amount (including any accrued Contingent Accretion) or the manner or rate
     of accrual of interest (including Contingent Interest and Liquidated
     Damages) or Contingent Accretion, or

          (iv) change any place of payment where, or the coin or currency in
     which, the Securities or any premium or interest (including the payment of
     Contingent Interest or Liquidated Damages, if any) thereon is payable, or

          (v) impair the right to institute suit for the enforcement of any such
     payment on or after the Stated Maturity (or, in the case of redemption or
     purchase, on or after the Redemption Date or the Purchase Date, Change in
     Control Purchase Date or Remarketing Purchase Date, as the case may be), or

          (vi) adversely affect the conversion rights of the Holders under
     Article 11 of this Indenture or the right of Holders to require the Company
     to purchase the Securities under Article 12, Article 13 and Section 16.04
     of this Indenture or the right of Holders to have their Securities
     remarketed as set forth in Article 16, or the obligations of the Company
     pursuant to Section 9.08, or

          (vii) reduce the quorum or voting requirements under this Indenture,
     or

          (viii) reduce the percentage in aggregate Original Principal Amount of
     the outstanding Securities, the consent of whose Holders is required for
     any such modification, or the consent of whose Holders is required for any
     waiver of compliance with the provisions of this Indenture or for any
     waiver of an Event of Default; or

                                       49

<PAGE>

          (ix) modify this Section 8.02, except to increase any percentages
     required for approval or to provide that certain other provisions of this
     Indenture cannot be modified or waived without the consent of the Holder of
     each outstanding Security affected thereby.

     Upon the request of the Company accompanied by a copy of a Board Resolution
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Holders as aforesaid, the
Trustee shall join with the Company in the execution of such supplemental
indenture. It shall not be necessary for any Act of Holders under this Section
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

     Section 8.03. Execution of Supplemental Indentures. In executing, or
accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be provided with, and (subject to Section 5.01)
shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

     Section 8.04. Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture pursuant to the provisions of this Article, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith, and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the Holders
shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

     Section 8.05. Reference in Securities to Supplemental Indentures.
Securities authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for in
such supplemental indenture. If the Company shall so determine, new Securities
so modified as to conform, in the opinion of the Trustee and the Company, to any
such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for outstanding
Securities.

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<PAGE>

                                    ARTICLE 9
                            COVENANTS OF THE COMPANY

     Section 9.01. Payment of Principal, Premium and Interest. The Company
covenants and agrees that it will duly and punctually pay or cause to be paid
all payments in respect of the Securities in accordance with the terms of the
Securities and this Indenture. Any amounts to be given to the Trustee or Paying
Agent shall be deposited with the Trustee or Paying Agent by 10:00 a.m. New York
City time by the Company at the latest on the day such payment is due or, if
such day is not a Business Day, the immediately succeeding Business Day.
Accreted Principal Amount, Redemption Price, Purchase Price, Remarketing
Purchase Price, Change in Control Purchase Price and interest (including
Contingent Interest and Liquidated Damages, if any), shall be considered paid on
the applicable date due if on such date (or, in the case of a Purchase Price,
Remarketing Purchase Price or Change in Control Purchase Price, on the Business
Day following the applicable Purchase Date or Change in Control Purchase Date,
as the case may be) the Trustee or the Paying Agent holds, in accordance with
this Indenture, money or securities, if permitted hereunder, sufficient to pay
all such amounts then due.

     Section 9.02. Maintenance of Office or Agency. The Company shall maintain
an office or agency of the Trustee, Registrar, Paying Agent and Conversion Agent
where the Securities may be presented or surrendered for payment, where the
Securities may be surrendered for registration of transfer or exchange, where
the Securities may be surrendered for purchase, redemption or conversion and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served; provided, however, that, at the option of the
Company, payment of interest may be made (subject to collection) by check mailed
to the address of the Person entitled thereto as such address shall appear in
the Registrar. The office of the Paying Agent, at the Corporate Trust Office,
shall initially be such office or agency for all of the aforesaid purposes. The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Company hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices and demands. The Company shall also
appoint and maintain a Calculation Agent to perform the duties required in this
Indenture.

     The Company may also from time to time designate one or more other offices
or agencies where the Securities may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations.

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<PAGE>

     Section 9.03. Money for Securities Payments to be Held in Trust. If the
Company shall at any time act as its own Paying Agent with respect to the
Securities, it will, on or before each due date of the Accreted Principal
Amount, Redemption Price, Purchase Price, Remarketing Purchase Price, Change in
Control Purchase Price (including Contingent Accretion, if any) and interest
(including Contingent Interest and Liquidated Damages, if any) on any of the
Securities, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay such sums so becoming due until such sums shall
be paid to such Persons or otherwise disposed of as herein provided. The Company
will promptly notify the Trustee of any failure by the Company to take such
action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for the
Securities, it will, on or prior to each due date of the Accreted Principal
Amount, Redemption Price, Purchase Price, Remarketing Purchase Price, Change in
Control Purchase Price (including Contingent Accretion, if any) and interest
(including Contingent Interest and Liquidated Damages, if any) on any
Securities, deposit with a Paying Agent a sum sufficient to pay such amounts so
becoming due, such sum to be held in trust for the benefit of the Persons
entitled to such amounts, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent, other than the Trustee or an
Affiliate of the Company, to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will:

          (i) hold all sums held by it for the payment of the Accreted Principal
     Amount, Redemption Price, Purchase Price, Remarketing Purchase Price,
     Change in Control Purchase Price (including Contingent Accretion, if any)
     and interest (including Contingent Interest and Liquidated Damages, if any)
     on the Securities (whether such sums have been paid to it by the Company or
     by any other obligor on the Securities) 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;

          (ii) give the Trustee notice of any failure by the Company (or any
     other obligor upon the Securities) to make any payment of the Accreted
     Principal Amount, Redemption Price, Purchase Price, Remarketing Purchase
     Price, Change in Control Purchase Price (including Contingent Accretion, if
     any) and interest (including Contingent Interest and Liquidated Damages, if
     any) on the Securities when the same shall be due and payable; and

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<PAGE>

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

     Anything in this Section to the contrary notwithstanding, the Company may,
at any time, for the purpose of obtaining satisfaction and discharge of this
Indenture, or for any other reason, pay, or by Company Order direct any Paying
Agent to pay, to the Trustee all sums held in trust by the Company or such
Paying Agent, such sums to be held by the Trustee upon the same trusts as those
upon which such sums were held by the Company or such Paying Agent; and, upon
such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Section 9.04. Compliance Certificate. The Company will deliver to the
Trustee, on or before a date not more than four months after the end of each
fiscal year ending after the date hereof, a brief certificate, which need not
comply with Section 1.02, from the principal executive, financial or accounting
officer of the Company, stating, as to his or her knowledge, whether or not the
Company is in default in the performance and observance of any of the terms,
provisions and conditions hereof (without regard to any period of grace or
requirement of notice provided hereunder), and, if the Company shall be in
default, specifying all such defaults and the nature thereof of which he or she
may have knowledge.

     Section 9.05. Restrictions on the Creation of Mortgages and Liens. The
Company will not an any time directly or indirectly create, assume, incur, or
suffer to be created, assumed, or incurred or to exist any mortgage, pledge,
encumbrance or lien of any kind (except for any bona fide option or agreement to
sell) (a "Lien") upon (1) any shares of capital stock owned by the Company of
any of the Principal Subsidiaries (other than directors' qualifying shares) or
(2) any shares of capital stock owned by the Company of a Subsidiary of the
Company that owns, directly or indirectly, capital stock of any of the Principal
Subsidiaries (other than directors' qualifying shares) without making effective
provision whereby the Securities (and any other indebtedness of the Company or
such Subsidiary entitled to the benefit of a covenant similar to the covenant
contained in this Section 9.05, subject to applicable priorities of payment)
will be secured by such Lien equally and ratably with any and all other
obligations thereby secured, so long as any such other obligations and
indebtedness shall be so secured; provided, however, that notwithstanding the
foregoing, the Company may incur or suffer to be incurred or to exist upon such
capital stock (A) Liens for taxes, assessments or other governmental charges or
levies which are not yet due or are payable without penalty or of which the
amount, applicability or validity is being contested by the Company in good
faith by appropriate proceedings, or (B) the Liens of any judgment, if such
judgment shall not have

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<PAGE>

remained undischarged, or unstayed on appeal or otherwise, for more than 60
days.

     Section 9.06. Calculation of Tax Original Issue Discount. The Company shall
file with the Trustee promptly at the end of each calendar year (i) a written
notice specifying the amount of Tax Original Issue Discount (including daily
rates and accrual periods) accrued on the Securities as of the end of such year
and (ii) such other specific information relating to such Tax Original Issue
Discount as may then be reasonably requested by the Trustee and relevant under
the Internal Revenue Code of 1986, as amended from time to time, or the Treasury
regulations promulgated thereunder.

     Section 9.07. Further Instruments and Acts. The Company will execute and
deliver such further instruments and do such further acts as may be reasonably
necessary or proper or as the Trustee may request to carry out more effectively
the purposes of this Indenture.

     Section 9.08. Obligation to Conduct Remarketing.

     (a) The Company shall appoint a Remarketing Agent and enter into a
remarketing agreement at least 30 days prior to any Remarketing Reset Event Date
and each subsequent Remarketing Reset Date.

     (b) The Company shall use its reasonable best efforts to effect the
remarketing of the Securities as described in Article 16. If in the judgment of
counsel to the Company or counsel to the Remarketing Agent a registration
statement is required to effect the Remarketing, the Company shall use its
reasonable best efforts to (i) ensure that a registration statement covering the
Accreted Principal Amount of all Securities to be remarketed will be effective
in a form that will enable the Remarketing Agent to rely on it in connection
with the Remarketing or (ii) effect such Remarketing pursuant to Rule 144A or
any other applicable exemption from registration requirements under the
Securities Act.

                                   ARTICLE 10
                            REDEMPTION OF SECURITIES

     Section 10.01. Right to Redeem; Notices to Trustee. Prior to December 1,
2006, the Securities shall not be redeemable at the option of the Company.
Unless a Remarketing Reset Event has occurred, beginning on December 1, 2006 and
until the earlier of the date on which a Remarketing Reset Event occurs and
Stated Maturity, the Securities are redeemable for cash as a whole, or from time
to time in part, at the option of the Company at the Redemption Price; provided
that if the Redemption Date is an Interest Payment Date, accrued and

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<PAGE>

unpaid interest (including Contingent Interest or Liquidated Damages, if any)
shall be paid to the Holder of record as of the applicable Regular Record Date,
rather than to the Holder presenting the Security for redemption. If the Company
elects to redeem Securities, it shall notify the Trustee in writing of the
Redemption Date, the Original Principal Amount of Securities to be redeemed and
the Redemption Price.

     The Company shall give the notice to the Trustee provided for in this
Section 10.01 by a Company Order at least 30 days before the Redemption Date.

     Section 10.02. Selection of Securities to Be Redeemed. If less than all the
Securities are to be redeemed, the Trustee shall select the Securities to be
redeemed pro rata or by lot or by any other method the Trustee considers fair
and appropriate (so long as such method is not prohibited by the rules of any
stock exchange on which the Securities are then listed). The Trustee shall make
the selection at least 15 days but not more than 60 days before the Redemption
Date from outstanding Securities not previously called for redemption. The
Trustee may select for redemption portions of the Original Principal Amount of
Securities that have denominations larger than $1,000. Securities and portions
of them the Trustee selects shall be in Original Principal Amounts of $1,000 or
an integral multiple of $1,000. Provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called for
redemption. The Trustee shall notify the Company promptly of the Securities or
portions of Securities to be redeemed.

     If any Security selected for partial redemption is converted in part before
termination of the conversion right with respect to the portion of the Security
so selected, the converted portion of such Security shall be deemed to be the
portion selected for redemption. Securities which have been converted during a
selection of Securities to be redeemed may be treated by the Trustee as
outstanding for the purpose of such selection.

     Notwithstanding the foregoing, if the Accreted Principal Amount has been
accelerated and such acceleration has not been rescinded, the Company shall not
redeem less than all the Securities then outstanding.

     Section 10.03. Notice of Redemption. At least 30 days but not more than 60
days before a Redemption Date, the Company shall mail a notice of redemption by
first-class mail, postage prepaid, to each Holder of Securities to be redeemed.

     The notice shall identify the Securities to be redeemed and shall at a
minimum state:

     (a) the Redemption Date;

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<PAGE>

     (b) the Redemption Price;

     (c) the Conversion Rate;

     (d) the name and address of the Paying Agent and Conversion Agent;

     (e) that Securities called for redemption may be converted at any time
before the close of business on the Business Day immediately preceding the
Redemption Date;

     (f) that Holders who want to convert Securities must satisfy the
requirements set forth in the applicable provisions of the Securities;

     (g) whether the Company will deliver cash, Common Stock or a combination of
cash and Common Stock in the event a Holder converts Securities called for
redemption;

     (h) that Securities called for redemption must be surrendered to the Paying
Agent to collect the Redemption Price;

     (i) if fewer than all the outstanding Securities are to be redeemed, the
certificate number and Original Principal Amounts of the particular Securities
to be redeemed;

     (j) that, unless the Company defaults in making payment of such Redemption
Price, interest (including Contingent Interest and Liquidated Damages, if any)
on Securities called for redemption will cease to accrue on and after the
Redemption Date; and

     (k) the CUSIP number of the Securities.

     At the Company's request, the Trustee shall give the notice of redemption
in the Company's name and at the Company's expense, provided that the Company
makes such request at least three Business Days prior to such notice of
redemption.

     Section 10.04. Effect of Notice of Redemption. Once notice of redemption is
given, Securities called for redemption become due and payable on the Redemption
Date and at the Redemption Price stated in the notice, except for Securities
which are converted in accordance with the terms of this Indenture. Upon
surrender to the Paying Agent, such Securities shall be paid at the Redemption
Price stated in the notice.

     Section 10.05. Deposit of Redemption Price. Prior to 10:00 a.m., New York
City time on the Redemption Date, the Company shall deposit with the Paying
Agent (or if the Company or a Subsidiary or an Affiliate of either of them

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<PAGE>

is the Paying Agent, shall segregate and hold in trust) money sufficient to pay
the Redemption Price of all Securities to be redeemed on that date other than
Securities or portions of Securities called for redemption which on or prior
thereto have been delivered by the Company to the Trustee for cancellation or
have been converted. The Paying Agent shall as promptly as practicable return to
the Company any money not required for that purpose because of conversion of
Securities pursuant to Article 11. If such money is then held by the Company in
trust and is not required for such purpose it shall be discharged from such
trust.

     Section 10.06. Securities Redeemed in Part. Upon surrender of a Security
that is redeemed in part, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder a new Security in an authorized
denomination equal in Original Principal Amount to the unredeemed portion of the
Security surrendered.

                                   ARTICLE 11
                                   CONVERSION

     Section 11.01. Conversion Rights. The Securities shall be convertible in
accordance with their terms and in accordance with and subject to this Article
into a number of shares of Common Stock per $1,000 Original Principal Amount of
Securities equal to the Conversion Rate. Notwithstanding the foregoing, if a
Remarketing Reset Event occurs, from and after the date of such Remarketing
Reset Event, the Securities shall no longer be convertible into Common Stock.

     A Holder of a Security otherwise entitled to a fractional share upon the
conversion thereof shall receive cash in an amount equal to the value of such
fractional share based on the Applicable Stock Price with respect to such
conversion. Upon a conversion, the Company may deliver cash or a combination of
cash and Common Stock in lieu of Common Stock, as described in Section 11.07.

     Upon determination that Holders are or will be entitled to convert their
Securities pursuant to this Article 11, the Company shall issue a press release
through Reuters Economic Services and Bloomberg Business News or other
reasonable means of distribution and publish such determination on the Company's
website on the World Wide Web.

     Holders may surrender Securities for conversion into shares of Common Stock
only if at least one of the conditions described in Sections 11.02 through 11.06
is satisfied. In addition, a Security in respect of which a Holder has delivered
a Purchase Notice or Change in Control Purchase Notice exercising the option of
such Holder to require the Company to purchase such Security may be

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<PAGE>

converted only if such notice of exercise is withdrawn in accordance with the
terms of the Indenture.

     Section 11.02. Conversion Rights Based on Common Stock Price. At any time
prior to the Stated Maturity, Securities may be surrendered for conversion into
shares of Common Stock in integral multiples of $1,000 Original Principal
Amount, if, as of the last day of any calendar quarter, the Closing Sale Price
of the Common Stock for at least 20 Trading Days in a period of 30 consecutive
Trading Days ending on the last Trading Day of such calendar quarter is more
than 125% of the Base Conversion Price as of the last day of such calendar
quarter.

     Section 11.03. Conversion Rights Upon Credit Rating Events. Securities may
be surrendered for conversion in integral multiples of $1,000 Original Principal
Amount any time after the earlier of (a) the date the Securities are assigned a
credit rating by both Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies Inc., and its successors ("S&P"), and Moody's Investors
Services and its successors ("Moody's") and (b) five Business Days following the
date of original issuance of the Securities, during any period in which (1) the
credit rating assigned to the Securities by S&P is below BBB+, (2) the credit
rating assigned to the Securities by Moody's is below Baa1 or (3) no credit
rating is assigned to the Securities by either S&P or Moody's.

     Section 11.04. Conversion Rights Upon Notice of Redemption. Holders may
surrender for conversion in integral multiples of $1,000 Original Principal
Amount any Securities called for redemption under Article 10 hereof at any time
prior to the close of business on the Business Day immediately preceding the
Redemption Date, even if the Securities are not otherwise convertible at such
time.

     Section 11.05. Conversion Rights Upon Occurrence of Certain Corporate
Transactions.

     If the Company is a party to a consolidation, merger or binding share
exchange pursuant to which shares of Common Stock would be converted into cash,
securities or other property as set forth in clause (ii) of Section 11.14, any
Security may be surrendered for conversion in integral multiples of $1,000
Original Principal Amount at any time from and after the date that is 15 days
prior to the anticipated effective date of the transaction until 15 days after
the actual date of such transaction (or until the Change in Control Purchase
Date if such transaction constitutes a Change in Control) and, at the effective
time of the transaction, the right to convert a Security into shares of Common
Stock shall be changed into a right to convert such Security into the kind and
amount of cash, securities or other property of the Company or another person
that the Holder

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would have received if the Holder had converted such Security immediately prior
to the transaction.

     If the Company distributes to all holders of Common Stock (1) rights or
warrants entitling them to purchase, for a period expiring within 45 days of the
record date for such distribution, Common Stock at less than the average Closing
Sale Price for the 10 Trading Days preceding the declaration date for such
distribution, or (2) cash, assets, debt securities or rights to purchase the
Company's securities, which distribution has a per share value exceeding 10% of
the Closing Sale Price of the Common Stock on the Trading Day immediately
preceding the declaration date for such distribution, the Securities may be
surrendered for conversion in integral multiples of $1,000 Original Principal
Amount beginning on the date that the Company gives notice to the Holders of
such right, which shall not be less than 20 days prior to the time ("Ex-Dividend
Time") immediately prior to the commencement of "ex-dividend" trading for such
distribution on the New York Stock Exchange or such other principal national or
regional exchange or market on which the Common Stock is then listed or quoted
for such dividend or distribution, and Securities may be surrendered for
conversion at any time thereafter until the earlier of close of business on the
Business Day prior to the Ex-Dividend Time and the date the Company announces
that such dividend or distribution will not take place. Notwithstanding the
foregoing, Holders shall not have the right to surrender Securities for
conversion pursuant to this Section 11.05 if they will otherwise participate in
the distribution described above without first converting Securities into Common
Stock.

     Section 11.06. Conversion Upon Satisfaction Of Trading Price Condition.

     (a) Securities may be surrendered for conversion in integral multiples of
$1,000 Original Principal Amount any time during the five Business Day period
after any five consecutive Trading Day period in which the Trading Price per
$1,000 Original Principal Amount of the Securities for each day of such five
Trading Day period was less than 96% of the product of the Closing Sale Price
and the Conversion Rate as of such Trading Day (determined based on such Closing
Sale Price rather than the Applicable Stock Price).

     (b) Notwithstanding the foregoing, if, on the day prior to any conversion
pursuant to Section 11.06(a), the Closing Sale Price of the Common Stock is
greater than the Effective Conversion Price but less than or equal to 125% of
the Base Conversion Price, the Holders of Securities surrendered for conversion
shall receive, in lieu of Common Stock based on the Conversion Rate, cash or
Common Stock or a combination of cash and Common Stock, at the Company's option,
with a value equal to the Accreted Principal Amount of Securities plus accrued
and unpaid interest, if any, including Contingent Interest

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and Liquidated Damages, if any, as of the Conversion Date (a "Principal Value
Conversion"). If a Holder surrenders its Securities for a Principal Value
Conversion, the Company shall notify such Holder by the second Trading Day
following the Conversion Date whether the Company will pay such Holder all or a
portion of the Accreted Principal Amount plus accrued and unpaid Contingent
Interest and Liquidated Damages, if any, in cash, Common Stock or a combination
of cash and Common Stock, and in what percentage. Any Common Stock delivered
upon a Principal Value Conversion will be valued at the greater of the Effective
Conversion Price on the Conversion Date and the Applicable Stock Price as of the
Conversion Date. The Company will pay such Holder any portion of the Accreted
Principal Amount plus accrued and unpaid Contingent Interest and Liquidated
Damages, if any, to be paid in cash and deliver Common Stock with respect to any
portion of the Accreted Principal Amount plus accrued and unpaid Contingent
Interest and Liquidated Damages, if any, to be paid in Common Stock, no later
than the third Business Day following the determination of the Applicable Stock
Price.

     (c) In connection with any conversion pursuant to this Section 11.06, the
Trustee shall not have any obligation to determine the Trading Price of the
Securities unless the Company has requested such determination and the Company
shall have no obligation to make such request unless a Holder provides the
Company with reasonable evidence that the Trading Price per Security would be
less than 96% of the product of the Closing Sale Price of the Common Stock and
the number of shares of Common Stock issuable upon conversion of such Security.
At such time, the Company shall instruct the Trustee to determine the Trading
Price of the Securities beginning on the next Trading Day and on each successive
Trading Day until the Trading Price per such Security is greater than or equal
to 96% of the product of the Closing Sale Price of the Common Stock and the
Conversion Rate as of such Trading Day (determined based on such Closing Sale
Price rather than the Applicable Stock Price).

     Section 11.07. Conversion Procedures. To convert a Security, a Holder must
(a) complete and manually sign the Conversion Notice or a facsimile of the
Conversion Notice on the back of the Security and deliver such notice to the
Conversion Agent, (b) surrender the Security to the Conversion Agent, (c)
furnish appropriate endorsements and transfer documents if required by the
Registrar or the Conversion Agent, (d) pay any transfer or similar tax, if
required and (e) if required, pay funds equal to the interest payable on the
next Interest Payment Date, or comply with applicable procedures of the
Depositary in the case of a beneficial interest in a Global Security. The date
on which the Holder satisfies all of those requirements is the "Conversion
Date." Except as set forth in Section 11.06, within two Business Days following
the Conversion Date, the Company shall deliver to the Holder, through the
Conversion Agent, written notice of whether such Securities shall be converted
into Common Stock or paid

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in cash or a combination of cash and Common Stock (unless the Company shall have
already done so pursuant to a notice of redemption pursuant to Section 10.03 in
respect of a Conversion Date occurring before the Redemption Date set forth in
such notice or the Company has previously made the Mandatory Cash Settlement
Election, as defined below). Upon any conversion of Securities, including a
Principal Value Conversion, the Company shall deliver to the Holder through the
Conversion Agent, no later than the third Business Day following the date on
which the Applicable Stock Price is determined, a certificate for the number of
whole shares of Common Stock issuable upon the conversion and, if applicable,
cash in lieu of such Common Stock in an amount equal to the Applicable Stock
Price with respect to such Conversion Date for each share of Common Stock in
lieu of which cash is being delivered pursuant to this Section 11.07 and cash in
lieu of any fractional shares pursuant to Section 11.08. Except as otherwise
provided in this Article 11, the Company may not change its election with
respect to the consideration to be delivered upon conversion of a Security once
the Company has notified the Holder in accordance with this paragraph. Anything
herein to the contrary notwithstanding, in the case of Global Securities,
Conversion Notices may be delivered and such Securities may be surrendered for
conversion in accordance with the applicable procedures of the Depositary as in
effect from time to time. The Person in whose name the Common Stock certificate
is registered shall be deemed to be a shareholder of record at the close of
business on the date on which the Applicable Stock Price is determined with
respect to the applicable Conversion Date; provided however, that if any such
date is a date when the stock transfer books of the Company are closed, such
Person shall be deemed a shareholder of record as of the next date on which the
stock transfer books of the Company are open.

     At any time prior to the Stated Maturity, the Company may at its option
elect, by notice to the Trustee and the Holders of the Securities, that upon
conversion of the Securities at any time following the date of such notice, the
Company shall be required to deliver cash in an amount at least equal to the
Accreted Principal Amount of the Securities converted (the "Mandatory Cash
Settlement Election"). If the Company makes the Mandatory Cash Settlement
Election, the Company shall also be required to deliver cash only in connection
with any Principal Value Conversion pursuant to Section 11.06. The Company shall
not be entitled to revoke a Mandatory Cash Election without the consent of at
least a majority in Original Principal Amount of the outstanding Securities as
contemplated by Section 8.02.

     No payment or adjustment shall be made for dividends on, or other
distributions with respect to, any Common Stock except as provided in this
Article. On conversion of a Security, except for conversion during the period
from the close of business on any Regular Record Date immediately preceding any
Interest Payment Date to the close of business on the Business Day immediately
preceding such Interest Payment Date, in which case the Holder on

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such Regular Record Date shall receive the interest payable on such Interest
Payment Date, that portion of accrued and unpaid interest, including Contingent
Interest, if any, on the converted Security attributable to the period from the
most recent Interest Payment Date (or, if no Interest Payment Date has occurred,
from the Issue Date) through the Conversion Date shall not be cancelled,
extinguished or forfeited, but rather shall be deemed to be paid in full to the
Holder thereof through delivery of the Common Stock (together with the cash
payment, if any, in lieu of fractional shares), or cash or a combination of cash
and Common Stock in lieu thereof, in exchange for the Security being converted
pursuant to the provisions hereof, and the fair market value of such shares of
Common Stock (together with any such cash payment in lieu of fractional shares),
or cash or a combination of cash and Common Stock in lieu thereof, shall be
treated as issued, to the extent thereof, first in exchange for accrued and
unpaid interest (including Contingent Interest, if any) accrued through the
Conversion Date and the balance, if any, of such fair market value of such
Common Stock (and any such cash payment), or cash in lieu thereof, shall be
treated as issued in exchange for the Accreted Principal Amount of the Security
being converted pursuant to the provisions hereof.

     The Company agrees, and by acceptance of a beneficial interest in a
Security each Holder and any beneficial owner of a Security shall be deemed to
agree, to treat, for United States federal income tax purposes, the fair market
value of the Common Stock received upon the conversion of a Security (together
with any cash payment in lieu of fractional shares) or cash, or a combination of
cash and Common Stock as a contingent payment on the Security for purposes of
the contingent payment regulations.

     If a Holder converts more than one Security at the same time, the number of
shares of Common Stock issuable upon the conversion shall be based on the
aggregate Original Principal Amount of Securities converted.

     Upon surrender of a Security that is converted in part, the Company shall
execute, and the Trustee shall authenticate and deliver to the Holder, a new
Security equal in Original Principal Amount to the Original Principal Amount of
the unconverted portion of the Security surrendered.

     Securities or portions thereof surrendered for conversion during the period
from the close of business on any Regular Record Date immediately preceding any
Interest Payment Date to the close of business on the Business Day immediately
preceding such Interest Payment Date shall be accompanied by payment to the
Company or its order, in New York Clearing House funds or other funds acceptable
to the Company, of an amount equal to the interest payable on such Interest
Payment Date with respect to the Original Principal Amount of Securities or
portions thereof being surrendered for conversion; provided that no such payment
need be made if (1) the Company has specified a

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Redemption Date that occurs during the period from the close of business on a
Regular Record Date to the close of business on the Interest Payment Date to
which such Regular Record Date relates, (2) the Company has specified a Change
in Control Purchase Date during such period or (3) only to the extent of overdue
interest or overdue Contingent Interest, any overdue interest or overdue
Contingent Interest exists on the Conversion Date with respect to the Securities
converted.

     The Holders' right to convert Securities into Common Stock are subject to
the Company's right to elect instead to pay each such Holder the amount of cash
determined pursuant to this Article (or an equivalent amount in a combination of
cash and shares of Common Stock), in lieu of delivering such Common Stock;
provided, however, that if the Accreted Principal Amount of the Securities has
been accelerated and such acceleration has not been rescinded, the Company shall
deliver Common Stock in accordance with this Article, whether or not the Company
has delivered a notice pursuant to this Section 11.07 to the effect that the
Securities would be paid in cash or a combination of cash and Common Stock;
provided further, that the preceding proviso shall not apply if the Company has
made the Mandatory Cash Settlement Election.

     Section 11.08. Fractional Shares. The Company shall not issue a fractional
share of Common Stock upon conversion of a Security. Instead, the Company will
deliver cash for the current market value of the fractional share. The current
market value of a fractional share of Common Stock shall be determined, to the
nearest 1/1,000th of a share, by multiplying the Applicable Stock Price in
effect with respect to the applicable Conversion Date of a full share of Common
Stock by the fractional amount and rounding the product to the nearest whole
cent.

     Section 11.09. Taxes on Conversion. If a Holder converts a Security, the
Company shall pay any documentary, stamp or similar issue or transfer tax due on
the issue of shares of Common Stock upon such conversion. However, the Holder
shall pay any such tax which is due because the Holder requests the shares to be
issued in a name other than the Holder's name. The Conversion Agent may refuse
to deliver the certificate representing the Common Stock being issued in a name
other than the Holder's name until the Conversion Agent receives a sum
sufficient to pay any tax which will be due because the shares are to be issued
in a name other than the Holder's name. Nothing herein shall preclude any tax
withholding required by law or regulation.

     Section 11.10. Reservation of Shares, Shares to Be Fully Paid; Compliance
with Governmental Requirements; Listing of Common Stock.

     (a) The Company shall provide, free from preemptive rights, out of its
authorized but unissued shares or shares held in treasury, sufficient shares of

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Common Stock to provide for the conversion of the Securities from time to time
as such Securities are presented for conversion.

     (b) Before taking any action which would cause an adjustment increasing the
Conversion Rate to an amount that would cause the Conversion Price to be reduced
below the then par value, if any, of the shares of Common Stock issuable upon
conversion of the Securities, the Company will take all corporate action which
may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue shares of such Common Stock at such adjusted
Conversion Rate.

     (c) (i) The Company covenants that all shares of Common Stock which may be
issued upon conversion of Securities will upon issue be fully paid and
non-assessable by the Company and free from all taxes, liens and charges with
respect to the issue thereof.

          (ii) The Company covenants that, if any shares of Common Stock to be
     provided for the purpose of conversion of Securities hereunder require
     registration with or approval of any governmental authority under any
     federal or state law before such shares may be validly issued upon
     conversion, the Company will in good faith and as expeditiously as
     possible, to the extent then permitted by the rules and interpretations of
     the Securities and Exchange Commission (or any successor thereto), endeavor
     to secure such registration or approval, as the case may be.

     (d) The Company further covenants that, if at any time the Common Stock
shall be listed on the NYSE or any other national securities exchange or
automated quotation system, the Company will, if permitted by the rules of such
exchange or automated quotation system, list and keep listed, so long as the
Common Stock shall be so listed on such exchange or automated quotation system,
all Common Stock issuable upon conversion of the Security; provided, however,
that, if the rules of such exchange or automated quotation system permit the
Company to defer the listing of such Common Stock until the first conversion of
the Securities into Common Stock in accordance with the provisions of this
Indenture, the Company covenants to list such Common Stock issuable upon
conversion of the Securities in accordance with the requirements of such
exchange or automated quotation system at such time.

     Section 11.11. Adjustment Of Conversion Rate. The Base Conversion Rate
shall be adjusted from time to time by the Company as follows:

     (a) In case the Company shall hereafter pay a dividend or make a
distribution to all holders of the outstanding Common Stock in shares of Common
Stock, the Base Conversion Rate shall be increased so that the same

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shall equal the rate determined by multiplying the Base Conversion Rate in
effect at the opening of business on the date following the date fixed for the
determination of stockholders entitled to receive such dividend or other
distribution by a fraction,

          (i) the numerator of which shall be the sum of the number of shares of
     Common Stock outstanding at the close of business on the date fixed for the
     determination of stockholders entitled to receive such dividend or other
     distribution plus the total number of shares of Common Stock constituting
     such dividend or other distribution; and

          (ii) the denominator of which shall be the number of shares of Common
     Stock outstanding at the close of business on the date fixed for such
     determination,

such increase to become effective immediately after the opening of business on
the day following the date fixed for such determination. If any dividend or
distribution of the type described in this Section 11.11(a) is declared but not
so paid or made, the Base Conversion Rate shall again be adjusted to the Base
Conversion Rate that would then be in effect if such dividend or distribution
had not been declared.

     (b) In case the Company shall issue rights or warrants to all holders of
its outstanding shares of Common Stock entitling them (for a period expiring
within forty-five (45) days after the date fixed for determination of
stockholders entitled to receive such rights or warrants) to subscribe for or
purchase shares of Common Stock at a price per share less than the average of
the Closing Sale Prices of the Common Stock for the 10 Trading Days preceding
the declaration date for such distribution, the Base Conversion Rate shall be
increased so that the same shall equal the rate determined by multiplying the
Base Conversion Rate in effect immediately prior to the date fixed for
determination of stockholders entitled to receive such rights or warrants by a
fraction,

          (i) the numerator of which shall be the number of shares of Common
     Stock outstanding on the date fixed for determination of stockholders
     entitled to receive such rights or warrants plus the total number of
     additional shares of Common Stock offered for subscription or purchase, and

          (ii) the denominator of which shall be the sum of the number of shares
     of Common Stock outstanding at the close of business on the date fixed for
     determination of stockholders entitled to receive such rights or warrants
     plus the number of shares that the aggregate offering price of the total
     number of shares so offered would purchase at a price

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<PAGE>

     equal to the average of the Closing Sale Prices of the Common Stock for the
     10 Trading Days preceding the declaration date for such distribution.

     Such adjustment shall be successively made whenever any such rights or
warrants are issued, and shall become effective immediately after the opening of
business on the day following the date fixed for determination of stockholders
entitled to receive such rights or warrants. To the extent that shares of Common
Stock are not delivered after the expiration of such rights or warrants, the
Base Conversion Rate shall be readjusted to the Base Conversion Rate that would
then be in effect had the adjustments made upon the issuance of such rights or
warrants been made on the basis of delivery of only the number of shares of
Common Stock actually delivered. If such rights or warrants are not so issued,
the Base Conversion Rate shall again be adjusted to be the Base Conversion Rate
that would then be in effect if such date fixed for the determination of
stockholders entitled to receive such rights or warrants had not been fixed. In
determining whether any rights or warrants entitle the holders to subscribe for
or purchase shares of Common Stock at a price less than the average of the
Closing Sale Prices of the Common Stock for the 10 Trading Days preceding the
declaration date for such distribution, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account
any consideration received by the Company for such rights or warrants and any
amount payable on exercise or conversion thereof, the value of such
consideration, if other than cash, to be determined by the Board of Directors.

     (c) In case outstanding shares of Common Stock shall be subdivided into a
greater number of shares of Common Stock, the Base Conversion Rate in effect at
the opening of business on the day following the day upon which such subdivision
becomes effective shall be proportionately increased, and conversely, in case
outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock, the Base Conversion Rate in effect at the opening of
business on the day following the day upon which such combination becomes
effective shall be proportionately reduced, such increase or reduction, as the
case may be, to become effective immediately after the opening of business on
the day following the day upon which such subdivision or combination becomes
effective.

     (d) In case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock shares of any class of capital stock of the Company
or evidences of its indebtedness or assets (including securities, but excluding
(x) any rights or warrants referred to in Section 11.11(b), (y) any dividend or
distribution (I) paid exclusively in cash or (II) referred to in Section
11.11(a) and (z) any distribution referred to in Section 11.11(g)) (any of the
foregoing hereinafter in this Section 11.11(d) called the "Distributed
Securities")), then, in each such case, the Base Conversion Rate shall be
increased so that the same shall be equal to the rate determined by multiplying

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the Base Conversion Rate in effect on the Record Date with respect to such
distribution by a fraction,

          (i) the numerator of which shall be the Current Market Price on such
     Record Date; and

          (ii) the denominator of which shall be the Current Market Price on
     such Record Date less the Fair Market Value (as determined by the Board of
     Directors, whose determination shall be conclusive, and described in a
     resolution of the Board of Directors) on the Record Date of the portion of
     the Distributed Securities so distributed applicable to one share of Common
     Stock,

such adjustment to become effective immediately prior to the opening of business
on the day following such Record Date; provided that if the then Fair Market
Value (as so determined) of the portion of the Distributed Securities so
distributed applicable to one share of Common Stock is equal to or greater than
the Current Market Price on the Record Date, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Holder shall have the
right to receive upon conversion the amount of Distributed Securities such
holder would have received had such holder converted each Security on the Record
Date. If such dividend or distribution is not so paid or made, the Base
Conversion Rate shall again be adjusted to be the Base Conversion Rate that
would then be in effect if such dividend or distribution had not been declared.
If the Board of Directors determines the Fair Market Value of any distribution
for purposes of this Section 11.11(d) by reference to the actual or when issued
trading market for any securities, it must in doing so consider the prices in
such market over the same period used in computing the Current Market Price on
the applicable Record Date.

     Rights or warrants distributed by the Company to all holders of Common
Stock entitling the holders thereof to subscribe for or purchase shares of the
Company's capital stock (either initially or under certain circumstances), which
rights or warrants, until the occurrence of a specified event or events
("Trigger Event"): (i) are deemed to be transferred with such shares of Common
Stock; (ii) are not exercisable; and (iii) are also issued in respect of future
issuances of Common Stock, shall be deemed not to have been distributed for
purposes of this Section 11.11 (and no adjustment to the Base Conversion Rate
under this Section 11.11 will be required) until the occurrence of the earliest
Trigger Event, whereupon such rights and warrants shall be deemed to have been
distributed and an appropriate adjustment (if any is required) to the Base
Conversion Rate shall be made under this Section 11.11(d). If any such right or
warrant, including any such existing rights or warrants distributed prior to the
date of this Indenture, are subject to events, upon the occurrence of which such
rights or warrants become exercisable to purchase different securities,
evidences of

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<PAGE>

indebtedness or other assets, then the date of the occurrence of any and each
such event shall be deemed to be the date of distribution and record date with
respect to new rights or warrants with such rights (and a termination or
expiration of the existing rights or warrants without exercise by any of the
holders thereof). In addition, in the event of any distribution (or deemed
distribution) of rights or warrants, or any Trigger Event or other event (of the
type described in the preceding sentence) with respect thereto that was counted
for purposes of calculating a distribution amount for which an adjustment to the
Base Conversion Rate under this Section 11.11 was made, (1) in the case of any
such rights or warrants that shall all have been redeemed or repurchased without
exercise by any holders thereof, the Base Conversion Rate shall be readjusted
upon such final redemption or repurchase to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal
to the per share redemption or repurchase price received by a holder or holders
of Common Stock with respect to such rights or warrants (assuming such holder
had retained such rights or warrants), made to all holders of Common Stock as of
the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise thereof,
the Base Conversion Rate shall be readjusted as if such expired or terminated
rights and warrants had not been issued.

     For purposes of this Section 11.11(d) and Section 11.11(a) and (b), any
dividend or distribution to which this Section 11.11(d) is applicable that also
includes shares of Common Stock, or rights or warrants to subscribe for or
purchase shares of Common Stock (or both), shall be deemed instead to be (1) a
dividend or distribution of the evidences of indebtedness, assets or shares of
capital stock other than such shares of Common Stock or rights or warrants (and
any Base Conversion Rate adjustment required by this Section 11.11(d) with
respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of Common Stock or
such rights or warrants (and any further Base Conversion Rate adjustment
required by Sections 11.11(a) and 11.11(b) with respect to such dividend or
distribution shall then be made), except (A) the Record Date of such dividend or
distribution shall be substituted as "the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution", "the date
fixed for the determination of stockholders entitled to receive such rights or
warrants" and "the date fixed for such determination" within the meaning of
Section 11.11(a) and 11.11(b) and (B) any shares of Common Stock included in
such dividend or distribution shall not be deemed "outstanding at the close of
business on the date fixed for such determination" within the meaning of Section
11.11(a).

     (e) In case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock cash, excluding (i) any dividend or distribution in
connection with the liquidation, dissolution or winding up of the Company,

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whether voluntary or involuntary or (ii) any quarterly cash dividend on the
Common Stock to the extent that the aggregate cash dividend per share of Common
Stock in any quarter does not exceed $0.10 (the "Dividend Threshold Amount"),
then, in such case, the Base Conversion Rate shall be increased so that the same
shall equal the rate determined by multiplying the Base Conversion Rate in
effect immediately prior to the close of business on such record date by a
fraction,

          (i) the numerator of which shall be the Current Market Price on such
     record date; and

          (ii) the denominator of which shall be the Current Market Price on
     such record date less the amount of cash so distributed applicable to one
     share of Common Stock (determined as set forth below),

such adjustment to be effective immediately prior to the opening of business on
the day following the record date; provided that if the portion of the cash so
distributed applicable to one share of Common Stock is equal to or greater than
the Current Market Price on the record date, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Holder shall have the
right to receive upon conversion the amount of cash such holder would have
received had such holder converted each Security on the Record Date. If such
dividend or distribution is not so paid or made, the Base Conversion Rate shall
again be adjusted to be the Base Conversion Rate that would then be in effect if
such dividend or distribution had not been declared. If any adjustment is
required to be made as set forth in this Section 11.11(e) as a result of a
distribution that is a quarterly cash dividend, such adjustment shall be based
upon the amount by which such distribution exceeds the Dividend Threshold
Amount. If an adjustment is required to be made as set forth in this Section
11.11(e) above as a result of a distribution that is not a quarterly cash
dividend, such adjustment shall be based upon the full amount of the
distribution. If an adjustment or readjustment is made to the Base Conversion
Rate pursuant to this Section 11.11 (other than any adjustment pursuant to
Section 11.11(e)), an appropriate inversely proportional adjustment shall be
made to the Dividend Threshold Amount.

     (f) In case a tender or exchange offer made by the Company or any
Subsidiary for all or any portion of the Common Stock shall expire and such
tender or exchange offer (as amended upon the expiration thereof) shall require
the payment to stockholders of consideration per share of Common Stock having a
Fair Market Value (as determined by the Board of Directors, whose determination
shall be conclusive and described in a resolution of the Board of Directors)
that as of the last time (the "Expiration Time") tenders or exchanges may be
made pursuant to such tender or exchange offer (as it may be amended)

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<PAGE>

exceeds the average of the Closing Sale Price of a share of Common Stock for
each of the 10 consecutive Trading Days next succeeding the Expiration Time, the
Base Conversion Rate shall be increased so that the same shall equal the rate
determined by multiplying the Base Conversion Rate in effect immediately prior
to the Expiration Time by a fraction,

          (i) the numerator of which shall be the sum of (x) the Fair Market
     Value (determined as aforesaid) of the aggregate consideration payable to
     stockholders based on the acceptance (up to any maximum specified in the
     terms of the tender or exchange offer) of all shares validly tendered or
     exchanged and not withdrawn as of the Expiration Time (the shares deemed so
     accepted up to any such maximum, being referred to as the "Purchased
     Shares") and (y) the product of the number of shares of Common Stock
     outstanding (less any Purchased Shares) at the Expiration Time and the
     average of the Closing Sale Price of a share of Common Stock for each of
     the 10 consecutive Trading Days next succeeding the Expiration Time, and

          (ii) the denominator of which shall be the number of shares of Common
     Stock outstanding (including any tendered or exchanged shares) at the
     Expiration Time multiplied by the average of the Closing Sale Price of a
     share of Common Stock for each of the 10 consecutive Trading Days next
     succeeding the Expiration Time,

such adjustment to become effective immediately prior to the opening of business
on the day following the Expiration Time. If the Company is obligated to
purchase shares pursuant to any such tender or exchange offer, but the Company
is permanently prevented by applicable law from effecting any such purchases or
all such purchases are rescinded, the Base Conversion Rate shall again be
adjusted to be the Base Conversion Rate that would then be in effect if such
tender or exchange offer had not been made.

     (g) If the Company pays a dividend or makes a distribution to all holders
of its Common Stock consisting of capital stock of any class or series, or
similar equity interests, of or relating to a Subsidiary or other business unit
of the Company, the Base Conversion Rate shall be increased so that the same
shall be equal to the rate determined by multiplying the Base Conversion Rate in
effect on the Record Date with respect to such distribution by a fraction,

          (i) the numerator of which shall be the sum of (A) the average of the
     Closing Sale Prices of the Common Stock for the 10 Trading Days commencing
     on and including the fifth Trading Day after the date on which "ex-dividend
     trading" commences for such dividend or distribution on The New York Stock
     Exchange or such other national or regional exchange or market on which
     such securities are then listed or

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<PAGE>

     quoted (the "Ex-Dividend Date") plus (B) the fair market value of the
     securities distributed in respect of each share of Common Stock for which
     this Section 11.11(g) applies and shall equal the number of securities
     distributed in respect of each share of Common Stock multiplied by the
     average of the closing sale prices of those securities distributed for the
     10 Trading Days commencing on and including the fifth Trading Day after the
     Ex-Dividend Date; and

          (ii) the denominator of which shall be the average of the Closing Sale
     Prices of the Common Stock for the 10 Trading Days commencing on and
     including the fifth Trading Day after the Ex-Dividend Date,

such adjustment to become effective immediately prior to the opening of business
on the day following fifteenth Trading Day after the Ex-Dividend Date; provided
that if (x) the average of the Closing Sale Prices of the Common Stock for the
10 Trading Days commencing on and including the fifth Trading Day after the
Ex-Dividend Date minus (y) the fair market value of the securities distributed
in respect of each share of Common Stock for which this Section 11.11(g) applies
(as calculated in Section 11.11(g)(i)(B) above) is less than $1.00, then the
adjustment provided by for by this Section 11.11(g) shall not be made and in
lieu thereof the provisions of Section 11.14 shall apply to such distribution.

     (h) If any adjustment or readjustment is made to the Base Conversion Rate
pursuant to this Section 11.11, the same proportional adjustment shall be made
to the Incremental Share Factor, the Maximum Conversion Rate and any Fixed
Conversion Rate; provided that no adjustment will be made to the Maximum
Conversion Rate as a result of any adjustment to the Base Conversion Rate
pursuant to Section 11.11(e).

     (i) For purposes of this Section 11.11, the following terms shall have the
meaning indicated:

          (i) "Current Market Price" shall mean the average of the daily Closing
     Sale Prices per share of Common Stock for the 10 consecutive Trading Days
     ending on the earlier of such date of determination and the day before the
     "ex" date with respect to the issuance, distribution, subdivision or
     combination requiring such computation immediately prior to the date in
     question. For purpose of this paragraph, the term "ex" date, (1) when used
     with respect to any issuance or distribution, means the first date on which
     the Common Stock trades, regular way, on the relevant exchange or in the
     relevant market from which the Closing Sale Price was obtained without the
     right to receive such issuance or distribution, and (2) when used with
     respect

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     to any subdivision or combination of shares of Common Stock, means the
     first date on which the Common Stock trades, regular way, on such exchange
     or in such market after the time at which such subdivision or combination
     becomes effective.

     If another issuance, distribution, subdivision or combination to which
Section 11.11 applies occurs during the period applicable for calculating
"Current Market Price" pursuant to the definition in the preceding paragraph,
"Current Market Price" shall be calculated for such period in a manner
determined by the Board of Directors to reflect the impact of such issuance,
distribution, subdivision or combination on the Closing Sale Price of the Common
Stock during such period.

          (ii) "Fair Market Value" shall mean the amount which a willing buyer
     would pay a willing seller in an arm's-length transaction.

          (iii) "Record Date" shall mean, with respect to any dividend,
     distribution or other transaction or event in which the holders of Common
     Stock have the right to receive any cash, securities or other property or
     in which the Common Stock (or other applicable security) is exchanged for
     or converted into any combination of cash, securities or other property,
     the date fixed for determination of stockholders entitled to receive such
     cash, securities or other property (whether such date is fixed by the Board
     of Directors or by statute, contract or otherwise).

     (j) To the extent permitted by applicable law, the Company from time to
time may increase the Base Conversion Rate by any amount for any period of time
if the period is at least 20 days, the increase is irrevocable during the period
and the Board of Directors shall have made a determination that such increase
would be in the best interests of the Company, which determination shall be
conclusive. Whenever the Base Conversion Rate is increased pursuant to the
preceding sentence, the Company shall mail to Holders a notice of the increase
at least 15 days prior to the date the increased Base Conversion Rate takes
effect, and such notice shall state the increased Base Conversion Rate (and, as
applicable, the Incremental Share Factor, the Maximum Conversion Rate and any
Fixed Conversion Rate) and the period during which they will be in effect.

     (k) No adjustment in the Base Conversion Rate (and, as applicable, the
Incremental Share Factor, the Maximum Conversion Rate and any Fixed Conversion
Rate) shall be required unless such adjustment would require an increase or
decrease of at least one percent (1%) in such rate; provided that any
adjustments that by reason of this Section 11.11(k) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment;
and provided further that all such carried forward adjustments shall be made,
regardless of whether the aggregate adjustment is less than one percent (1%),
not

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later than one year following the first such adjustment carried forward. All
calculations under this Article 11 shall be made by the Company and shall be
made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a
share, as the case may be. No adjustment need be made for rights to purchase
Common Stock pursuant to a Company plan for reinvestment of dividends or
interest or, except as set forth in this Article 11, for any issuance of Common
Stock or convertible or exchangeable securities or rights to purchase Common
Stock or convertible or exchangeable securities. To the extent the Securities
become convertible into cash, assets, property or securities (other than capital
stock of the Company), subject to Section 11.14, no adjustment need be made
thereafter as to the cash, assets, property or such securities. Interest will
not accrue on any cash into which the Securities are convertible.

     (l) Whenever the Base Conversion Rate (and, as applicable, the Incremental
Share Factor, the Maximum Conversion Rate and any Fixed Conversion Rate) is
adjusted as herein provided, the Company shall promptly file with the Trustee
and any Conversion Agent other than the Trustee an Officers' Certificate setting
forth the Base Conversion Rate (and, as applicable, the Incremental Share
Factor, the Maximum Conversion Rate and any Fixed Conversion Rate) after such
adjustment and setting forth a brief statement of the facts requiring such
adjustment. Unless and until a Responsible Officer of the Trustee or Conversion
Agent shall have received such Officers' Certificate, the Trustee or Conversion
Agent, as the case may be, shall not be deemed to have knowledge of any
adjustment of the Base Conversion Rate (and, as applicable, the Incremental
Share Factor, the Maximum Conversion Rate and any Fixed Conversion Rate) and may
assume that the last Base Conversion Rate (and, as applicable, the Incremental
Share Factor, the Maximum Conversion Rate and any Fixed Conversion Rate) of
which it has knowledge is still in effect. Promptly after delivery of such
certificate, the Company shall prepare a notice of such adjustment of the Base
Conversion Rate (and, as applicable, the Incremental Share Factor, the Maximum
Conversion Rate and any Fixed Conversion Rate) setting forth the adjusted Base
Conversion Rate (and, as applicable, the Incremental Share Factor, the Maximum
Conversion Rate and any Fixed Conversion Rate) and the date on which each
adjustment becomes effective and shall mail such notice of such adjustment of
the Base Conversion Rate (and, as applicable, the Incremental Share Factor, the
Maximum Conversion Rate and any Fixed Conversion Rate) to the Holder of each
Security at his last address appearing on the Security Register within 20 days
after execution thereof. Failure to deliver such notice shall not affect the
legality or validity of any such adjustment.

     (m) In any case in which this Section 11.11 provides that an adjustment
shall become effective immediately after (1) a record date or Record Date for an
event, (2) the date fixed for the determination of stockholders entitled to
receive a dividend or distribution pursuant to Section 11.11(a), (3) a date
fixed for the

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determination of stockholders entitled to receive rights or warrants pursuant to
Section 11.11(b), or (4) the Expiration Time for any tender or exchange offer
pursuant to Section 11.11(f) (each a "Determination Date"), the Company may
elect to defer until the occurrence of the applicable Adjustment Event (as
hereinafter defined) (x) issuing to the holder of any Security converted after
such Determination Date and before the occurrence of such Adjustment Event, the
additional shares of Common Stock or other securities issuable upon such
conversion by reason of the adjustment required by such Adjustment Event over
and above the Common Stock issuable upon such conversion before giving effect to
such adjustment and (y) paying to such holder any amount in cash in lieu of any
fraction pursuant to Section 11.08. For purposes of this Section 11.11(m), the
term "Adjustment Event" shall mean:

          (i) in any case referred to in clause (1) hereof, the occurrence of
     such event,

          (ii) in any case referred to in clause (2) hereof, the date any such
     dividend or distribution is paid or made,

          (iii) in any case referred to in clause (3) hereof, the date of
     expiration of such rights or warrants, and

          (iv) in any case referred to in clause (4) hereof, the date a sale or
     exchange of Common Stock pursuant to such tender or exchange offer is
     consummated and becomes irrevocable.

     (n) For purposes of this Section 11.11, the number of shares of Common
Stock at any time outstanding shall not include shares held in the treasury of
the Company, unless such treasury shares participate in any distribution or
dividend that requires an adjustment pursuant to this Section 11.11, but shall
include shares issuable in respect of scrip certificates issued in lieu of
fractions of shares of Common Stock.

     Section 11.12. Adjustment for Tax Purposes. The Company shall be entitled
to make such increases in the Base Conversion Rate (and, as applicable, the
Incremental Share Factor, the Maximum Conversion Rate and any Fixed Conversion
Rate), in addition to those required by Section 11.11, as the Board of Directors
considers to be advisable to avoid or diminish any income tax to holders of
Common Stock or rights to purchase Common Stock resulting from any dividend or
distribution of stock (or rights to acquire stock) or from any event treated as
such for income tax purposes.

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     Section 11.13. Notice of Certain Transactions. In the event that:

          (i) the Company takes any action which would require an adjustment in
     the Conversion Rate;

          (ii) the Company takes any action that requires a supplemental
     indenture pursuant to Section 11.14; or

          (iii) there is a dissolution or liquidation of the Company;

the Company shall mail to Holders and file with the Trustee a notice stating the
proposed record or effective date, as the case may be. The Company shall mail
the notice at least 15 days before such date. Failure to mail such notice or any
defect therein shall not affect the validity of any transaction referred to in
clause (i), (ii) or (iii) of this Section 11.13.

     Section 11.14. Effect of Reclassification, Consolidation, Merger or Sale on
Conversion Privilege. If any of the following events occur, namely (i) any
reclassification or change of the outstanding shares of Common Stock (other than
a subdivision or combination to which Section 11.11(c) applies), (ii) any
consolidation, merger or combination of the Company with another Person as a
result of which holders of Common Stock shall be entitled to receive stock,
other securities or other property or assets (including cash) with respect to or
in exchange for such Common Stock, or (iii) any sale or conveyance of all or
substantially all of the properties and assets of the Company to any other
Person as a result of which holders of Common Stock shall be entitled to receive
stock, other securities or other property or assets (including cash) with
respect to or in exchange for such Common Stock, then the Company or the
successor or purchasing Person, as the case may be, shall execute with the
Trustee a supplemental indenture (which shall comply with the TIA as in force at
the date of execution of such supplemental indenture) providing that each
Security shall be convertible into the kind and amount of shares of stock, other
securities or other property or assets (including cash) receivable upon such
reclassification, change, consolidation, merger, combination, sale or conveyance
by a holder of a number of shares of Common Stock issuable upon conversion of
such Securities (assuming, for such purposes, a sufficient number of authorized
shares of Common Stock are available to convert all such Securities) immediately
prior to such reclassification, change, consolidation, merger, combination, sale
or conveyance assuming such holder of Common Stock did not exercise his rights
of election, if any, as to the kind or amount of stock, other securities or
other property or assets (including cash) receivable upon such reclassification,
change, consolidation, merger, combination, sale or conveyance (provided that,
if the kind or amount of stock, other securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation,
merger, combination, sale or conveyance is not the same for each share of Common

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Stock in respect of which such rights of election shall not have been exercised
("non-electing share"), then for the purposes of this Section 11.14 the kind and
amount of stock, other securities or other property or assets (including cash)
receivable upon such reclassification, change, consolidation, merger,
combination, sale or conveyance for each non-electing share shall be deemed to
be the kind and amount so receivable per share by a plurality of the
non-electing shares). Such supplemental indenture shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article 11.

     The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each Holder of Securities, at its address appearing on
the Security register, within 20 days after execution thereof and shall issue a
press release containing such information through Reuters Economic Services and
Bloomberg Business News or other reasonable means of distribution and publish
such information on its website on the World Wide Web. Failure to deliver such
notice shall not affect the legality or validity of such supplemental indenture.

     The above provisions of this Section shall similarly apply to successive
reclassifications, changes, consolidations, mergers, combinations, sales and
conveyances.

     If this Section 11.14 applies to any event or occurrence, Section 11.11
shall not apply.

     Section 11.15. Trustee's Disclaimer. The Trustee shall have no duty to
determine when an adjustment under this Article should be made, how it should be
made or what such adjustment should be, but may accept as conclusive evidence of
that fact or the correctness of any such adjustment, and shall be protected in
relying upon, an Officers' Certificate including the Officers' Certificate with
respect thereto which the Company is obligated to file with the Trustee pursuant
to Section 11.11(k). The Trustee makes no representation as to the validity or
value of any securities or assets issued upon conversion of Securities, and the
Trustee shall not be responsible for the Company's failure to comply with any
provisions of this Article.

     The Trustee shall not be under any responsibility to determine the
correctness of any provisions contained in any supplemental indenture executed
pursuant to Section 11.14, but may accept as conclusive evidence of the
correctness thereof, and shall be fully protected in relying upon, the Officers'
Certificate with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 11.11(k).

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     Section 11.16. Rights Issued in Respect of Common Stock Issued Upon
Conversion. Each share of Common Stock issued upon conversion of Securities
pursuant to this Article 11 shall be entitled to receive the appropriate number
of common stock or preferred stock purchase rights, as the case may be (the
"Rights"), if any, that shares of Common Stock are entitled to receive and the
certificates representing the Common Stock issued upon such conversion shall
bear such legends, if any, in each case as may be provided by the terms of any
shareholder rights agreement adopted by the Company, as the same may be amended
from time to time (in each case, a "Rights Agreement"). Provided that such
Rights Agreement requires that each share of Common Stock issued upon conversion
of Securities at any time prior to the distribution of separate certificates
representing the Rights be entitled to receive such Rights, then,
notwithstanding anything else to the contrary in this Article 11, there shall
not be any adjustment to the conversion privilege or Base Conversion Rate (and
as applicable, the Incremental Share Factor, the Maximum Conversion Rate and any
Fixed Conversion Rate) as a result of the issuance of Rights, but an adjustment
to the Base Conversion Rate (and as applicable, the Incremental Share Factor,
the Maximum Conversion Rate and any Fixed Conversion Rate) shall be made
pursuant to Section 11.11(d) upon the separation of the Rights from the Common
Stock.

     Section 11.17. Company Determination Final. Any determination that the
Company or the Board of Directors must make pursuant to Sections 11.07, 11.08,
11.11, 11.12 or 11.14 shall be conclusive.

                                   ARTICLE 12
                          PURCHASE AT OPTION OF HOLDERS

     Section 12.01. Right to Require Purchase.

     (a) Unless a Remarketing Reset Event occurs, each Holder has the right to
require the Company to purchase all or a portion of the Securities held by such
Holder on December 1, 2006, 2008, 2013, 2018, 2023, and 2028, or if any such day
is not a Business Day, on the immediately succeeding Business Day (each, a
"Purchase Date"), if the Securities are not immediately convertible into Common
Stock on such Purchase Date.

     (b) The Company shall give notice of each Purchase Date and of the
procedures set forth in Section 12.02 that each Holder must follow to exercise
its purchase right to each Holder at its address set forth in the Security
Register and to the Depositary, not later than 20 Business Days prior to each
Purchase Date.

     Section 12.02. Purchase Procedures. If the Holders have the right to
require the purchase of Securities pursuant to Section 12.01, the Company shall

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purchase such Securities for cash at a Purchase Price equal to 100% of the
Accreted Principal Amount thereof, plus accrued and unpaid interest (including
Liquidated Damages, if any) to, but excluding, the Purchase Date (the "Purchase
Price") (provided that if the Purchase Date is an Interest Payment Date, any
accrued and unpaid interest or Liquidated Damages shall be paid to the Holder of
record as of the applicable Regular Record Date, rather than to the Holder
presenting the Security for purchase), at the option of the Holder thereof,
upon:

     (a) delivery to the Paying Agent by the Holder of a written notice of
purchase (a "Purchase Notice") at any time from the opening of business on the
date that is 20 Business Days prior to a Purchase Date until the close of
business on such Purchase Date stating:

          (i) if a certificated Security has been issued, the certificate number
     of the Security which the Holder will deliver to be purchased or if not,
     such information as may be required under applicable procedures of the
     Depositary,

          (ii) the portion of the Original Principal Amount of the Security
     which the Holder will deliver to be purchased, which portion must be $1,000
     or an integral multiple thereof, and

          (iii) that such Security shall be purchased as of the applicable
     Purchase Date pursuant to this Article 12 and any applicable provisions of
     such Security; and

     (b) delivery or book-entry transfer of such Security to the Paying Agent
prior to, on or after the Purchase Date (together with all necessary
endorsements) at the offices of the Paying Agent, such delivery being a
condition to receipt by the Holder of the Purchase Price therefor; provided,
however, that such Purchase Price shall be so paid pursuant to this Article only
if the Security so delivered to the Paying Agent shall conform in all respects
to the description thereof in the related Purchase Notice, if such Security is
in certified form.

     The Company shall purchase from the Holder thereof, pursuant to this
Article, a portion of a Security if the Original Principal Amount of such
portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

     Any purchase by the Company contemplated pursuant to the provisions of this
Article shall be consummated by the payment of the Purchase Price to be received
by the Holder in cash promptly following the later of the Purchase Date

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and the time of delivery or book-entry transfer of the Security as set forth in
Section 12.04.

     Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent the Purchase Notice contemplated by this Section 12.02 shall
have the right to withdraw such Purchase Notice at any time prior to the close
of business on the Purchase Date by delivery of a written notice of withdrawal
to the Paying Agent in accordance with Section 12.03.

     The Paying Agent shall promptly notify the Company of the receipt by it of
any Purchase Notice or written notice of withdrawal thereof.

     Section 12.03. Effect of Purchase Notice. Upon receipt by the Paying Agent
of the Purchase Notice specified in Section 12.02(a), the Holder of the Security
in respect of which such Purchase Notice was given shall (unless such Purchase
Notice is withdrawn as specified in the following two paragraphs) thereafter be
entitled to receive solely the Purchase Price with respect to such Security.
Such Purchase Price shall be paid to such Holder, subject to receipt of funds by
the Paying Agent, promptly following the later of (x) the Purchase Date with
respect to such Security (provided the conditions in Section 12.02 have been
satisfied) and (y) the time of delivery or book-entry transfer of such Security
to the Paying Agent by the Holder thereof in the manner required by Section
12.02. Securities in respect of which a Purchase Notice has been given by the
Holder thereof may not be converted pursuant to Article 11 hereof on or after
the date of the delivery of such Purchase Notice unless such Purchase Notice has
first been validly withdrawn as specified in the following two paragraphs.

     A Purchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent in accordance with the
Purchase Notice at any time prior to the close of business on the applicable
Purchase Date specifying:

          (i) if certificated Securities have been issued, the certificate
     number of the Security in respect of which such notice of withdrawal is
     being submitted, or if not, such information as may be required under
     appropriate procedures of the Depositary;

          (ii) the Original Principal Amount of the Security with respect to
     which such notice of withdrawal is being submitted; and

          (iii) the Original Principal Amount, if any, of such Security that
     remain subject to the original Purchase Notice and have been or will be
     delivered or book-entry transferred for purchase by the Company.

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     There shall be no purchase of any Securities pursuant to this Article 12 if
there has been an acceleration of the Accreted Principal Amount (prior to, on or
after, as the case may be, the giving, by the Holders of such Securities, of the
required Purchase Notice) and such acceleration has not been rescinded. The
Paying Agent will promptly return to the respective Holders thereof any
Securities (x) with respect to which a Purchase Notice has been withdrawn in
compliance with this Indenture, or (y) held by it if there has been an
acceleration of the Accreted Principal Amount, and such acceleration has not
been rescinded, in which case, upon such return, the Purchase Notice with
respect thereto shall be deemed to have been withdrawn.

     Section 12.04. Deposit of Purchase Price. Prior to 11:00 a.m. (New York
City time) on the Business Day immediately following the Purchase Date, the
Company shall deposit with the Trustee or with the Paying Agent an amount of
cash (in immediately available funds if deposited on such Business Day)
sufficient to pay the aggregate Purchase Price of all of the Securities or
portions thereof which are to be purchased as of the Purchase Date. The manner
in which the deposit required by this Section 12.04 is made by the Company shall
be at the option of the Company, provided, however, that such deposit shall be
made in a manner such that the Trustee or a Paying Agent shall have immediately
available funds on the date of deposit.

     If a Paying Agent holds, in accordance with the terms hereof, cash
sufficient to pay the Purchase Price of any Security for which a Purchase Notice
has been tendered and not withdrawn in accordance with this Indenture on the
Business Day following the Purchase Date then, immediately after such Purchase
Date, such Security will cease to be outstanding, interest (including Contingent
Interest and Liquidated Damages, if any) will cease to accrue and the rights of
the Holder in respect thereof shall terminate (other than the right to receive
the Purchase Price as aforesaid).

     Section 12.05. Securities Purchased in Part. Any Security which is to be
purchased only in part shall be surrendered at the office of the Paying Agent
(with, if the Company, the Paying Agent or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company, the Paying Agent or the Trustee duly executed by, the Holder thereof or
such Holder's attorney duly authorized in writing) and the Company shall execute
and the Trustee, or any Authenticating Agent, shall authenticate and deliver to
the Holder of such Security, without service charge except for any taxes to be
paid by the Holder in the event a Security is registered under a new name, a new
Security or Securities, of any authorized denomination as requested by such
Holder in aggregate Original Principal Amount equal to, and in exchange for, the
portion of the Original Principal Amount of the Security so surrendered which is
not purchased.

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     Section 12.06. Repayment to the Company. The Trustee and the Paying Agent
shall return to the Company any cash that remains unclaimed for two years,
subject to applicable unclaimed property law, together with interest, if any,
thereon held by them for the payment of the Purchase Price, provided, however,
that to the extent that the aggregate amount of cash or Common Stock deposited
by the Company pursuant to Section 12.04 exceeds the aggregate Purchase Price of
the Securities or portions thereof which the Company is obligated to purchase as
of the Purchase Date, then promptly after the Business Day following the
Purchase Date, the Trustee or the Paying Agent, as applicable, shall return any
such excess to the Company. Thereafter, any Holder entitled to payment must look
to the Company for payment as general creditors, unless an applicable abandoned
property law designates another Person.

                                   ARTICLE 13
              PURCHASE AT OPTION OF HOLDER UPON A CHANGE IN CONTROL

     Section 13.01. Right to Require Purchase.

     (a) Unless a Remarketing Reset Event occurs, if at any time prior to Stated
Maturity that Securities remain outstanding there shall occur a Change in
Control, Securities shall be purchased by the Company in integral multiples of
$1,000 Original Principal Amount at the option of the Holders thereof as of the
date specified by the Company that is not less than 20 Business Days nor more
than 35 Business Days after the occurrence of the Change in Control (the "Change
in Control Purchase Date") subject to satisfaction by or on behalf of any Holder
of the requirements set forth in subsection (c) of this Section 13.01. The
purchase price of such Securities (the "Change in Control Purchase Price") shall
be equal to 100% of the Accreted Principal Amount of the Securities to be
purchased plus accrued and unpaid interest (including Contingent Interest and
Liquidated Damages, if any) to, but excluding, the Change in Control Purchase
Date, unless such Change in Control Purchase Date falls after a Regular Record
Date and on or prior to the corresponding Interest Payment Date, in which case
the Company shall pay the full amount of accrued and unpaid interest (including
Contingent Interest and Liquidated Damages, if any) payable on such Interest
Payment Date to the holder of record at the close of business on such Regular
Record Date.

     A "Change in Control" shall be deemed to have occurred at such time as
either of the following events shall occur:

               (i) There shall be consummated any consolidation or merger of the
          Company pursuant to which the Common Stock would be converted into
          cash, securities or other property, in each case other than a
          consolidation or merger of the Company in which the holders of the

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          Common Stock immediately prior to the consolidation or merger have,
          directly or indirectly, at least a majority of the total voting power
          in the aggregate of all classes of capital stock of the continuing or
          surviving corporation immediately after such consolidation or merger;
          or

               (ii) There is a report filed on Schedule 13D or 14D-1 (or any
          successor schedule, form or report) pursuant to the Exchange Act,
          disclosing that any person, including such person's Affiliates or
          Associates (for the purposes of this Section 13.01 only, as the term
          "person" is used in Section 13(d)(3) or Section 14(d)(2) of the
          Exchange Act) has become the beneficial owner (as the term "beneficial
          owner" is defined under Rule 13d-3 or any successor rule or regulation
          promulgated under the Exchange Act) of 50% or more of the voting power
          of the Common Stock or other Capital Stock into which the Common Stock
          is reclassified or changed; provided, however, that a person shall not
          be deemed beneficial owner of, or to own beneficially, Error! Bookmark
          not defined. any securities tendered pursuant to a tender or exchange
          offer made by or on behalf of such person or any of such person's
          Affiliates or Associates until such tendered securities are accepted
          for purchase or exchange thereunder, or Error! Bookmark not defined.
          any securities if such beneficial ownership (1) arises solely as a
          result of a revocable proxy delivered in response to a proxy or
          consent solicitation made pursuant to the applicable rules and
          regulations under the Exchange Act, and (2) is not also then
          reportable on Schedule 13D (or any successor schedule) under the
          Exchange Act.

     Notwithstanding the foregoing provisions of this Section 13.01, a Change of
Control shall not deemed to have occurred upon the occurrence of any of the
following:

          (i) The Company, any Subsidiary, any employee stock ownership plan or
     any other employee benefit plan of the Company or any Subsidiary, or any
     person holding Common Stock for or pursuant to the terms of any such
     employee benefit plan, files or becomes obligated to file a report under or
     in response to Schedule 13D or Schedule 14D-1 (or any successor schedule,
     form or report) under the Exchange Act disclosing beneficial ownership by
     it of shares of Common Stock, whether in excess of 50% or otherwise;

          (ii) The Closing Sale Price per share of Common Stock for any five
     Trading Days within the period of 10 consecutive Trading Days ending
     immediately after the later of the Change in Control or the public
     announcement of the Change in Control, in the case of a Change in Control
     relating to an acquisition of capital stock, or the period of 10
     consecutive Trading Days ending immediately before the Change in Control,
     in the case of a Change in Control relating to a merger, consolidation or
     asset sale,

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     equals or exceeds 105% of the Effective Conversion Price of the Securities
     in effect on each of those Trading Days; or

          (iii) All or substantially all (but in no event less than 90%) of the
     consideration in the transaction or transactions (other than cash payments
     for fractional shares and cash payments made in respect of dissenters'
     appraisal rights) constituting a Change in Control consists of shares of
     common stock, depository receipts or other certificates representing common
     equity interests traded or to be traded immediately following a Change of
     Control on a national securities exchange or Nasdaq, and, as a result of
     the transaction or transactions, the Securities become convertible into
     that common stock, depository receipts or other certificates representing
     common equity interests.

     "Associate" shall have the meaning ascribed to such term in Rule 12b-2 of
the General Rules and Regulations under the Exchange Act, as in effect on the
date hereof.

     (b) Within 15 Business Days after the occurrence of a Change in Control,
the Company shall mail a written notice of the Change in Control to the Trustee
and any Paying Agent and to each Holder.

     The notice shall include the form of a Change in Control Purchase Notice to
be completed by the Holder and shall state:

          (i) the date of such Change in Control and, briefly, the events
     causing such Change in Control;

          (ii) the date by which the Change in Control Purchase Notice pursuant
     to this Section 13.01 must be given;

          (iii) the Change in Control Purchase Date;

          (iv) the Change in Control Purchase Price that will be accrued and
     payable with respect to the Securities as of the Change in Control Purchase
     Date;

          (v) briefly, the conversion rights of the Securities;

          (vi) the name and address of each Paying Agent and Conversion Agent;

          (vii) the Base Conversion Rate, the Maximum Conversion Rate and the
     current Conversion Rate (using the Applicable Stock Price as determined as
     of the Business Day prior to the date on which the notice pursuant to this
     Section 13.01(b) is mailed by the Company to the

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     Trustee or Paying Agent (assuming a Conversion Date 13 Trading Days prior
     to such date), and any adjustments thereto;

          (viii) that Securities as to which a Change in Control Purchase Notice
     has been given may be converted into Common Stock pursuant to Article 11
     only to the extent that the Change in Control Purchase Notice has been
     withdrawn in accordance with the terms of this Indenture;

          (ix) the procedures that the Holder must follow to exercise rights
     under this Section 13.01;

          (x) the procedures for withdrawing a Change in Control Purchase
     Notice, including a form of notice of withdrawal;

          (xi) that the Holder must satisfy the requirements set forth herein
     and in the Securities in order to convert the Securities; and

          (xii) the last date on which the purchase right may be exercised.

     If any of the Securities is in the form of a Global Security, then the
Company shall modify such notice to the extent necessary to accord with the
procedures of the Depositary applicable to the purchase of Global Securities.

     (c) A Holder may exercise its rights specified in subsection (a) of this
Section 13.01 upon delivery of a written notice (which shall be in substantially
the form included as an attachment to the Securities and which may be delivered
by letter, overnight courier, hand delivery, facsimile transmission or in any
other written form and, in the case of Global Securities, may be delivered
electronically or by other means in accordance with the Depositary's customary
procedures) of the exercise of such rights (a "Change in Control Purchase
Notice") to any Paying Agent at any time prior to the close of business on the
Change in Control Purchase Date.

     The delivery of such Security to any Paying Agent (together with all
necessary endorsements) at the office of such Paying Agent shall be a condition
to the receipt by the Holder of the Change in Control Purchase Price.

     The Company shall purchase from the Holder thereof, pursuant to this
Section 13.01, a portion of a Security if the Original Principal Amount of such
portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Security pursuant to Section
13.01 through Section 13.05 also apply to the purchase of such portion of such
Security.

     Any purchase by the Company contemplated pursuant to the provisions of this
Section 13.01 shall be consummated by the delivery of the consideration

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to be received by the Holder promptly following the later of the Change in
Control Purchase Date and the time of delivery of the Security to the Paying
Agent in accordance with this Section 13.01 as set forth in Section 13.02.

     Notwithstanding anything herein to the contrary, any Holder delivering to a
Paying Agent the Change in Control Purchase Notice contemplated by this
subsection (c) shall have the right to withdraw such Change in Control Purchase
Notice in whole or as to a portion thereof that is an Original Principal Amount
of $1,000 or an integral multiple thereof at any time prior to the close of
business on the Change in Control Purchase Date by delivery of a written notice
of withdrawal to the Paying Agent in accordance with Section 13.02.

     A Paying Agent shall promptly notify the Company of the receipt by it of
any Change in Control Purchase Notice or written withdrawal thereof.

     Anything herein to the contrary notwithstanding, in the case of Global
Securities, any Change in Control Purchase Notice may be delivered or withdrawn
and such Securities may be surrendered or delivered for purchase in accordance
with the applicable procedures of the Depositary as in effect from time to time.

     Section 13.02. Effect of Change in Control Purchase Notice.

     Upon receipt by any Paying Agent of the Change in Control Purchase Notice
specified in Section 13.01(c), the Holder of the Security in respect of which
such Change in Control Purchase Notice was given shall (unless such Change in
Control Purchase Notice is withdrawn as specified below) thereafter be entitled
to receive the Change in Control Purchase Price with respect to such Security.
Such Change in Control Purchase Price shall be paid to such Holder promptly
following the later of (a) the Change in Control Purchase Date with respect to
such Security (provided the conditions in Section 13.01(c) have been satisfied)
and (b) the time of delivery or book-entry transfer of such Security to a Paying
Agent by the Holder thereof in the manner required by Section 13.01(c).
Securities in respect of which a Change in Control Purchase Notice has been
given by the Holder thereof may not be converted into Common Stock on or after
the date of the delivery of such Change in Control Purchase Notice unless such
Change in Control Purchase Notice has first been validly withdrawn as specified
in the following paragraph.

     A Change in Control Purchase Notice may be withdrawn by means of a written
notice of withdrawal delivered to the office of the Paying Agent in accordance
with the Change in Control Purchase Notice at any time prior to the close of
business on the applicable Change in Control Purchase Date specifying:

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          (i) if certificated Securities have been issued, the certificate
     numbers for Securities in respect of which such notice of withdrawal is
     being submitted, or if not, such information as required by the Depositary;

          (ii) the Original Principal Amount, in integral multiples of $1,000,
     of the Securities with respect to which such notice of withdrawal is being
     submitted; and

          (iii) the Original Principal Amount, if any, of such Securities that
     remain subject to the original Change in Control Purchase Notice and have
     been or will be delivered or book-entry transferred for purchase by the
     Company.

     There shall be no purchase of any Securities pursuant to this Article if
there has been an acceleration of the Accreted Principal Amount (prior to, on or
after, as the case may be, the giving, by the Holders of such Securities, of the
required Change in Control Purchase Notice) and such acceleration has not been
rescinded. The Paying Agent will promptly return to the respective Holders
thereof any Securities (x) with respect to which a Change in Control Purchase
Notice has been withdrawn in compliance with this Indenture, or (y) held by it
while there has been an acceleration of the Accreted Principal Amount, and such
acceleration has not been rescinded, in which case, upon such return, the Change
in Control Purchase Notice with respect thereto shall be deemed to have been
withdrawn.

     Section 13.03. Deposit of Change in Control Purchase Price. On or before
11:00 a.m. New York City time on the Business Day immediately following the
Change in Control Purchase Date, the Company shall deposit with the Trustee or
with a Paying Agent an amount of cash (in immediately available funds if
deposited on such Business Day) sufficient to pay the aggregate Change in
Control Purchase Price of all the Securities or portions thereof that are to be
purchased as of such Change in Control Purchase Date. The manner in which the
deposit required by this Section 13.03 is made by the Company shall be at the
option of the Company, provided, however, that such deposit shall be made in a
manner such that the Trustee or a Paying Agent shall have immediately available
funds on the date of such deposit.

     If a Paying Agent holds, in accordance with the terms hereof, money
sufficient to pay the Change in Control Purchase Price of any Security for which
a Change in Control Purchase Notice has been tendered and not withdrawn in
accordance with this Indenture on the Business Day following the Change in
Control Purchase Date then, immediately following the Change in Control Purchase
Date, such Security will cease to be outstanding, interest (including Contingent
Interest and Liquidated Damages, if any) will cease to accrue and the

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rights of the Holder in respect thereof shall terminate (other than the right to
receive the Change in Control Purchase Price). The Company shall publicly
announce the Original Principal Amount of Securities purchased as a result of
such Change in Control on or as soon as practicable after the Change in Control
Purchase Date.

     Section 13.04. Securities Purchased in Part. Any Security that is to be
purchased only in part shall be surrendered at the office of a Paying Agent and
promptly after the Change in Control Purchase Date the Company shall execute and
the Trustee, or any Authenticating Agent, shall authenticate and deliver to the
Holder of such Security, without service charge (other than amounts to be paid
in respect of applicable transfer taxes), a new Security or Securities, of such
authorized denomination or denominations in integral multiples of $1,000
Original Principal Amount as may be requested by such Holder, in aggregate
Original Principal Amount equal to, and in exchange for, the portion of the
Original Principal Amount of the Security so surrendered that is not purchased.

     Section 13.05. Repayment to the Company. The Trustee and the Paying Agent
shall return to the Company any cash that remains unclaimed for two years,
subject to applicable unclaimed property law, together with interest, if any,
thereon held by them for the payment of the Change in Control Purchase Price;
provided, however, that to the extent that the aggregate amount of cash
deposited by the Company pursuant to Section 13.03 exceeds the aggregate Change
in Control Purchase Price of the Securities or portions thereof which the
Company is obligated to purchase as of the Change in Control Purchase Date, then
on the Business Day following the Purchase Date, the Trustee or Paying Agent, as
applicable, shall return any such excess to the Company. Thereafter, any Holder
entitled to payment must look to the Company for payment as general creditors,
unless an applicable abandoned property law designates another Person.

                                   ARTICLE 14
                               CONTINGENT INTEREST

     Section 14.01. Contingent Interest.

     (a) Unless a Remarketing Reset Event occurs, the Company will pay
Contingent Interest to Holders during any Interest Period commencing on or after
December 1, 2006, if (x) the average Trading Price of the Securities for the
five Trading Day measurement period immediately preceding the first day of the
applicable Interest Period (the "Measurement Period") equals 125% or more of the
Accreted Principal Amount of the Securities as of the first day of such
Measurement Period and (y) the Securities are immediately convertible into
Common Stock on the first day of such Measurement Period. The amount of

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Contingent Interest payable in any Interest Period pursuant to this Section
14.01(a) will be equal to the Fixed Conversion Rate multiplied by the Payment
Factor for such Interest Period. The "Payment Factor" for each Interest Period
is $0.20, subject to adjustment for any stock dividends on or any subdivisions,
combinations or reclassifications of shares of the Common Stock. Such
adjustments shall be made in a manner inversely proportional to the
corresponding adjustments to the Conversion Rate for such events pursuant to
Section 11.11.

     (b) Unless a Remarketing Reset Event occurs, the Company will pay
Contingent Interest (in addition to Contingent Interest payable pursuant to
Section 14.01(a)) to Holders during any Interest Period commencing on or after
December 1, 2006, if (x) the average Trading Price of the Securities for the
applicable Measurement Period equals 200% or more of the Accreted Principal
Amount of the Securities as of the first day of such Measurement Period and (y)
the Securities are immediately convertible into Common Stock on the first day of
such Measurement Period. The amount of Contingent Interest payable in any
Interest Period pursuant to this Section 14.01(b) will be equal to .125% of the
average Trading Price of the Securities for the applicable Measurement Period.

     Section 14.02. Payment of Contingent Interest. The Company shall pay
Contingent Interest owed pursuant to Section 14.01(a) or (b) for any Interest
Period on the Interest Payment Date immediately succeeding the applicable
Interest Period (whether or not interest on the Securities is otherwise payable
on such Interest Payment Date), to Holders of Securities as of the Regular
Record Date relating to such Interest Payment Date.

     Section 14.03. Notice of Contingent Interest.

     (a) As soon as practicable following the first Business Day of an Interest
Period for which Contingent Interest will be payable pursuant to Section
14.01(a) or (b), the Company shall issue a press release through Reuters
Economic Services and Bloomberg Business News or other reasonable means of
distribution containing this information and publish the information on its
website on the World Wide Web.

     (b) On any Interest Payment Date on which Contingent Interest is payable
pursuant to this Article 14, the Company shall issue a press release through
Reuters Economic Services and Bloomberg Business News or other reasonable means
of distribution stating the amount of such Contingent Interest and setting forth
the manner in which such amount was calculated, and publish such information on
its website on the World Wide Web.

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                                   ARTICLE 15
                              CONTINGENT ACCRETION

     Section 15.01. Contingent Accretion.

     (a) Following the occurrence of a Remarketing Reset Event, the Company will
pay Contingent Accretion to Holders if for four or more consecutive Interest
Periods, the Securities are rated below BBB- by S&P and below Baa3 by Moody's,
or the Securities are not rated by both S&P and Moody's, as of the last day of
each Interest Period. The amount of Contingent Accretion that will accrue in any
Interest Period pursuant to this Section 15.01(a) will be equal to $5.00 per
$1,000 Original Principal Amount of Securities for each such Interest Period.

     (b) Following the occurrence of a Remarketing Reset Event, the Company will
pay additional Contingent Accretion (in addition to Contingent Accretion payable
pursuant to Section 15.01(a)) to Holders, if, during any of the four or more
consecutive Interest Periods referred to in Section 15.01(a), the Securities are
rated below BB by S&P and below Ba2 by Moody's, or the Securities are not rated
by both S&P and Moody's, as of the last day of each Interest Period. The amount
of Contingent Accretion that will accrue in any Interest Period pursuant to this
Section 15.01(b) will be equal to $5.00 per $1,000 Original Principal Amount of
Securities for each such Interest Period.

     Section 15.02. Payment of Contingent Accretion.

     (a) The Company shall pay Contingent Accretion owed pursuant to Section
15.01(a) or Section 15.01(b) upon the repayment in full by the Company of the
Accreted Principal Amount of the Securities and any accrued and unpaid interest
(including Contingent Interest and Liquidated Damages, if any), whether upon
acceleration pursuant to Section 4.02 of the Indenture, upon the dates set for
payment of the Remarketing Purchase Price, upon the Stated Maturity of the
Securities or otherwise (each, a "Contingent Accretion Payment Date").

     (b) Any Contingent Accretion accrued pursuant to Section 15.01(a) or
Section 15.01(b) will not bear interest or additional accretion from accrual
until payment.

     (c) Notwithstanding the foregoing, if at any time, following the accrual of
any Contingent Accretion pursuant to Section 15.01(a) or Section 15.01(b) and
prior to the Contingent Accretion Payment Date, the Securities are rated BBB- or
higher by S&P and Baa3 or higher by Moody's, such Contingent Accretion shall no
longer be payable.

     Section 15.03. Notice of Contingent Accretion.

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     (a) As soon as practicable following the accrual of any Contingent
Accretion pursuant to Section 15.01(a) or Section 15.01(b), the Company shall
issue a press release through Reuters Economic Services and Bloomberg Business
News or other reasonable means of distribution containing the amount of
Contingent Accretion that has accrued per $1,000 Original Principal Amount of
Securities and publish such information on its website on the World Wide Web.

     (b) If, following the accrual of any Contingent Accretion pursuant to
Section 15.01(a) or Section 15.01(b), such Contingent Accretion shall no longer
be payable pursuant to Section 15.02(c), the Company shall issue a press release
through Reuters Economic Services and Bloomberg Business News or other
reasonable means of distribution containing this information and publish the
information on its website on the World Wide Web as soon as practicable
following the occurrence of the events described in Section 15.02(c).

     (c) On any Contingent Accretion Payment Date on which Contingent Accretion
is payable pursuant to this Article 15, the Company shall issue a press release
through Reuters Economic Services and Bloomberg Business News or other
reasonable means of distribution stating the amount of such Contingent Accretion
per $1,000 Original Principal Amount of Securities and setting forth the manner
in which such amount was calculated, and publish such information on its website
on the World Wide Web.

                                   ARTICLE 16
                           YIELD RESET AND REMARKETING

     Section 16.01. Remarketing Reset Event. Unless a Remarketing Reset Event
has previously occurred, if the average of the Closing Sale Prices of the Common
Stock over the 10 Trading Day period ending on the Trading Day immediately
preceding any Remarketing Reset Event Date is less than the Effective Conversion
Price as of such Trading Day (a "Remarketing Reset Event"), then following such
Remarketing Reset Event Date, the Company will not pay Contingent Interest on
the Securities, the Securities will no longer be convertible into Common Stock,
the right of Holders to require the Company to purchase Securities on a Purchase
Date or upon a Change in Control shall cease, and the yield or cash interest
rate, as the case may be, on the Securities will be reset on such Remarketing
Reset Event Date and each Remarketing Reset Date thereafter.

     Section 16.02. Reset Yield.

     (a) The yield or cash interest rate on the Securities will be reset by the
Remarketing Agent on each Remarketing Reset Date to the yield (the "Reset

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Yield"), or if the Securities will bear cash interest pursuant to Section
16.02(b), to the cash interest rate (the "Reset Rate"), for the applicable
Interest Period (as defined in clause (3) of the definition thereof) necessary
for the proceeds from the remarketing of the Securities, net of any fee to the
Remarketing Agent, to be 100% of Accreted Principal Amount, plus any accrued an
unpaid interest (including Contingent Interest and Liquidated Damages, if any),
as of such Remarketing Reset Date, of the Securities remarketed; provided that
the Reset Yield shall not exceed the maximum rate permitted by law and shall not
be less than 0% per annum.

     (b) (i) The Company may elect prior to any remarketing that following such
remarketing the Securities will bear cash interest, in which case the Reset
Yield shall be 0% during the period from and including the applicable
Remarketing Reset Date to but excluding the next succeeding Remarketing Reset
Date.

          (ii) If the Company elects pursuant to clause (b)(i) above that the
     Securities will bear cash interest, the Company shall pay cash interest on
     the Accreted Principal Amount of the Securities at a rate per annum equal
     to the Reset Rate. The Company will pay such cash interest on the Interest
     Payment Dates specified by the Company in the notice referred to in Section
     16.03(e), to the Holders of Securities as of the applicable Regular Record
     Dates specified by the Company in such notice.

     (c) Notwithstanding the foregoing, if (i) less than $50 million aggregate
Original Principal Amount of Securities is to be remarketed on any Remarketing
Reset Date pursuant to Section 16.03 or (ii) a Failed Remarketing occurs on any
Remarketing Reset Date, the Securities shall not bear cash interest pursuant to
any election by the Company pursuant to Section 16.02(b) and the Reset Yield
shall be the yield necessary, in the judgment of the Remarketing Agent based on
bids from at least three independent nationally recognized securities dealers
selected by the Remarketing Agent, for the Securities to trade at a price equal
to 100% of the Accreted Principal Amount thereof as of such Remarketing Reset
Date. If the Remarketing Agent is not able to obtain bids from at least three
independent nationally recognized securities dealers on a Remarketing Reset
Date, the Reset Yield shall be the Reset Yield in effect on the previous
Remarketing Reset Date, or if no previous Remarketing Reset Date has occurred or
the Reset Yield has not previously been established, the regular interest rate
or Applicable Yield (other than 0%) most recently in effect for the Securities
immediately prior to the applicable Remarketing Reset Date.

     (d) By approximately 4:30 p.m., New York City time, on any Remarketing
Reset Date, the Remarketing Agent shall notify the Company, the Trustee, the
Paying Agent and the Depositary of the Reset Yield or, if applicable, the Reset
Rate. The Company shall issue a press release through

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Reuters Economic Services and Bloomberg Business News or other reasonable means
of distribution stating such Reset Yield or Reset Rate and publish such
information on its website on the World Wide Web.

     Section 16.03. Remarketing Procedures.

     (a) On any Remarketing Reset Date, all outstanding Securities will be
tendered or deemed tendered to the Remarketing Agent for remarketing unless the
Holder thereof elects not to participate in the remarketing. Each Holder of
Securities by purchasing such Securities agrees to have such Securities
remarketed on any Remarketing Reset Date (unless such Holder elects not to
participate in the remarketing) and authorizes the Remarketing Agent to take any
and all action on its behalf necessary to effect the remarketing. On any
Remarketing Reset Event Date, each Holder of Securities will have the right to
elect not to have its Securities remarketed by notice to the Paying Agent on or
prior to the Business Day immediately prior to any Remarketing Reset Event Date
of the Original Principal Amount of Securities such Holder wants withheld from a
remarketing if a Remarketing Reset Event occurs. Following the occurrence of a
Remarketing Reset Event, each Holder, whether or not such Holder elected to
withhold its Securities from a remarketing on any prior Remarketing Reset Date,
may elect not to participate in a remarketing by notice (a "Notice to Opt Out of
Remarketing") to the Paying Agent on or prior to the Business Day prior to the
applicable Remarketing Reset Date (the "Opt Out Date").

     (b) If on any Remarketing Reset Date a Remarketing Reset Event occurs or
has previously occurred and Holders of at least $50 million aggregate Original
Principal Amount of Securities have not delivered a Notice to Opt Out of
Remarketing (a "Required Remarketing Date"), the Remarketing Agent shall conduct
such remarketing in accordance with the terms of the Remarketing Agreement and
this Indenture.

     (c) If the Securities are successfully remarketed by the Remarketing Agent
on any Required Remarketing Date, the Remarketing Agent shall deduct any fee
specified in the Remarketing Agreement from the proceeds of such remarketing and
remit the remaining proceeds, which shall be at least 100% of the Accreted
Principal Amount of the Securities remarketed, to the Holders who did not
deliver a Notice to Opt Out of Remarketing as promptly as possible following the
applicable Required Remarketing Date.

     (d) If, by 4:00 p.m., New York City time, on any Required Remarketing Date,
the Remarketing Agent is unable to remarket all Securities for which no Notice
to Opt Out of Remarketing has been delivered or a condition precedent in the
Remarketing Agreement shall not have been fulfilled, a failed remarketing
("Failed Remarketing") shall be deemed to have occurred.

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In the event of a Failed Remarketing, the Company shall issue a press release
through Reuters Economic Services and Bloomberg Business News or other
reasonable means of distribution regarding such Failed Remarketing and stating
the aggregate Original Principal Amount of Securities that the Company will
repurchase as required pursuant to Section 16.04(a) and publish such information
on its website on the World Wide Web.

     (e) The Company shall notify the Holders of the Securities, and the Company
shall request that the Depositary notify its participants holding Securities, at
least 21 Business Days prior to each Opt Out Date of the potential remarketing
of the Securities, the next Remarketing Reset Date, whether the Securities will
accrete or bear cash interest pursuant to Section 16.03(b) and if the Securities
will bear cash interest, the applicable Interest Payment Dates and Regular
Record Dates, the procedures a beneficial owner must follow to elect not to
participate in such remarketing, the applicable Opt Out Date and the right of
the beneficial owners of Securities to require the Company to purchase
Securities if there is a Failed Remarketing; provided that if the Company does
not provide such notice, (i) the next Remarketing Reset Date shall be the first
anniversary of the previous Remarketing Reset Date (or if such day is not a
Business Day, the immediately succeeding Business Day) and (ii) the Securities
will not bear cash interest pursuant to Section 16.02(b). The Company will also
issue a press release through Reuters Economic Services and Bloomberg Business
News or other reasonable means of distribution and publish such information on
its website on the World Wide Web.

     (f) Securities in respect of which no Notice to Opt Out of Remarketing has
been given by the Holder thereof may not be converted pursuant to Article 11
hereof on or after the Opt Out Date, if a Remarketing Reset Event occurs.

     A Notice to Opt Out of Remarketing may be withdrawn at any time prior to
the close of Business on the Opt Out Date by means of a written notice of
withdrawal delivered to the office of the Paying Agent in accordance with the
Notice to Opt Out of Remarketing at any time prior to the close of business on
the applicable Remarketing Reset Date specifying:

          (i) if certificated Securities have been issued, the certificate
     numbers for Securities in respect of which such notice of withdrawal is
     being submitted, or if not, such information as required by the Depositary;

          (ii) the Original Principal Amount, in integral multiples of $1,000,
     of the Securities with respect to which such notice of withdrawal is being
     submitted; and

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          (iii) the Original Principal Amount, if any, of such Securities that
     remain subject to the original Notice to Opt Out of Remarketing.

     Section 16.04. Right to Require Purchase.

     (a) If a Failed Remarketing occurs on any Remarketing Reset Date, each
Holder of Securities will have the right to require the Company to purchase all
or a portion of its Securities on such Remarketing Reset Date for cash. The
Company shall purchase such Securities at a purchase price (the "Remarketing
Purchase Price") equal to 100% of the Accreted Principal Amount (including
accrued Contingent Accretion, if any) thereof as of the applicable Remarketing
Reset Date, plus accrued and unpaid interest (including Liquidated Damages, if
any) to, but excluding such Remarketing Reset Date. Each Holder must notify the
Paying Agent on or prior to each Remarketing Reset Event Date and any subsequent
Remarketing Reset Date of the aggregate Original Principal Amount of Securities
it wants the Company to repurchase in the event of a Failed Remarketing. Holders
of Securities will be deemed to have exercised their right to require the
Company to purchase the aggregate Original Principal Amount of Securities unless
they elected not to participate in the applicable remarketing by delivering a
Notice to Opt Out of Remarketing pursuant to Section 16.03(a).

     (b) If less than $50 million aggregate Original Principal Amount of
Securities is to be remarketed on any Remarketing Reset Date because Holders of
all remaining outstanding Securities have elected not to participate in such
remarketing, there will not be a remarketing and such Holders who did not
deliver the Notice to Opt Out of Remarketing, but only such Holders, will have
the right to require to the Company to purchase all or a portion of their
Securities on such Remarketing Reset Date for cash. Such Holders are deemed to
exercise such right with respect to the aggregate Original Principal Amount of
Securities for which they did not deliver the Notice to Opt Out of Remarketing.
The Company shall purchase such Securities at the Remarketing Purchase Price.

     (c) The procedures set forth in Sections 12.04 through 12.06 shall apply to
the purchase of Securities by the Company pursuant to Sections 16.04(a) or (b),
mutatis mutandis, except references to Purchase Date, Purchase Price and
Purchase Notice shall be deemed to refer instead to Remarketing Purchase Date,
Remarketing Purchase Price, and the purchase notice pursuant to Section
16.04(a), respectively.

     A purchase notice pursuant to Section 16.04(a) may be withdrawn by means of
a written notice of withdrawal delivered to the office of the Paying Agent at
any time prior to the close of business on the applicable Remarketing Reset Date
specifying:

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          (i) if certificated Securities have been issued, the certificate
     numbers for Securities in respect of which such notice of withdrawal is
     being submitted, or if not, such information as required by the Depositary;

          (ii) the Original Principal Amount, in integral multiples of $1,000,
     of the Securities with respect to which such notice of withdrawal is being
     submitted; and

          (iii) the Original Principal Amount, if any, of such Securities that
     remain subject to the original purchase notice and have been or will be
     delivered for purchase by the Company.

                                   ARTICLE 17
        IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS, DIRECTORS AND
                                   EMPLOYEES

     Section 17.01. Exemption From Individual Liability. No recourse under or
upon any obligation, covenant or agreement of this Indenture, or of any
Security, or for any claim based thereon or otherwise in respect thereof, shall
be had against any incorporator, stockholder, officer, director or employee, as
such, past, present or future, of the Company or of any successor corporation,
either directly or through the Company, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate obligations, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, the
incorporators, stockholders, officers, directors or employees, as such, past,
present or future, of the Company or of any successor corporation, or any of
them, because of the creation of the indebtedness hereby authorized, or under or
by reason of the obligations, covenants or agreements contained in this
Indenture or in any of the Securities or implied herefrom or therefrom; and that
any and all such personal liability, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims against,
every such incorporator, stockholder, officer, director or employee, as such,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any of the Securities or implied therefrom, are hereby expressly waived
and released as a condition of, and as a consideration for, the execution of
this Indenture and the issue of such Securities.

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                                   ARTICLE 18
                            MISCELLANEOUS PROVISIONS

     Section 18.01. Successors and Assigns of Company Bound by Indenture. All
the covenants, stipulations, promises and agreements in this Indenture contained
by or in behalf of the Company shall bind its successors and assigns, whether so
expressed or not.

     Section 18.02. Acts of Board, Committee or Officer of Successor Corporation
Valid. Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the
like board, committee or officer of any corporation that shall at that time be
the successor of the Company.

     Section 18.03. Required Notices or Demands. Any notice or demand which by
any provision of this Indenture is required or permitted to be given or served
by the Trustee or by the Holders to or on the Company may be given or served by
being mailed postage prepaid in the United States addressed (until another
address is filed by the Company with the Trustee), as follows: American Express
Company, 200 Vesey Street, New York, New York, 10285, Attention: Secretary. Any
notice, direction, request or demand by the Company or by any Holder to or upon
the Trustee may be given or made, for all purposes, by being mailed postage
prepaid in the United States addressed to the Corporate Trust Office of the
Trustee. Any notice required or permitted to be mailed to a Holder by the
Company or the Trustee pursuant to the provisions of this Indenture shall be
deemed to be properly mailed by being mailed postage prepaid in the United
States addressed to such Holder at the address of such Holder as shown on the
Security Register. In any case, where notice to Holders is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed,
to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the 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 Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     In case, by reason of the suspension of or irregularities in regular mail
service, it shall be impractical to mail notice of any event to Holders when
such notice is required to be given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall reasonably be satisfactory to the
Trustee shall be deemed to be a sufficient giving of such notice.

                                       96

<PAGE>

     Section 18.04. GOVERNING LAW. THE LAWS OF THE STATE OF NEW YORK SHALL
GOVERN THIS INDENTURE AND THE SECURITIES, WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAWS.

     Section 18.05. Indenture May Be Executed in Counterparts. This Indenture
may be executed in any number of counterparts, each of which when so executed
shall be deemed an original; and all such counterparts shall together constitute
but one and the same instrument.

                                       97

<PAGE>

     IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed
this Indenture on behalf of the respective parties hereto as of the date first
above written.

                                        AMERICAN EXPRESS COMPANY

                                        By: /s/ DAVID L. YOWAN
                                            ------------------------------------
                                            Name: DAVID L. YOWAN
                                            Title: ASST. TREASURER

                                        U.S. BANK NATIONAL ASSOCIATION

                                        By: /s/ Patrick J. Crowley
                                            ------------------------------------
                                            Name: Patrick J. Crowley
                                            Title: Vice President

<PAGE>

                        [FORM OF FACE OF GLOBAL SECURITY]

     [FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED, THIS SECURITY IS BEING ISSUED WITH TAX ORIGINAL ISSUE
DISCOUNT AND THE ISSUE DATE OF THIS SECURITY IS NOVEMBER 21, 2003. IN ADDITION,
THIS SECURITY IS SUBJECT TO UNITED STATES FEDERAL INCOME TAX REGULATIONS
GOVERNING CONTINGENT PAYMENT DEBT INSTRUMENTS. FOR PURPOSES OF SECTIONS 1272,
1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE COMPARABLE YIELD OF THIS
SECURITY IS 6.25%, COMPOUNDED SEMI-ANNUALLY (WHICH WILL BE TREATED AS THE YIELD
TO MATURITY FOR UNITED STATES FEDERAL INCOME TAX PURPOSES).

     AMERICAN EXPRESS COMPANY (THE "COMPANY") AGREES, AND BY ACCEPTING A
BENEFICIAL OWNERSHIP INTEREST IN THIS SECURITY EACH HOLDER AND ANY BENEFICIAL
OWNER OF THIS SECURITY WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL
INCOME TAX PURPOSES (1) TO TREAT THIS SECURITY AS A DEBT INSTRUMENT THAT IS
SUBJECT TO TREAS. REG. SEC. 1.1275-4 (THE "CONTINGENT PAYMENT REGULATIONS"), (2)
TO TREAT THE FAIR MARKET VALUE OF ANY STOCK RECEIVED UPON ANY CONVERSION OF THIS
SECURITY AS A CONTINGENT PAYMENT FOR PURPOSES OF THE CONTINGENT PAYMENT
REGULATIONS, AND (3) TO ACCRUE INTEREST WITH RESPECT TO THE SECURITY AS TAX
ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES ACCORDING
TO THE "NONCONTINGENT BOND METHOD," SET FORTH IN THE CONTINGENT PAYMENT
REGULATIONS, USING THE COMPARABLE YIELD OF 6.25% COMPOUNDED SEMI-ANNUALLY AND
THE PROJECTED PAYMENT SCHEDULE DETERMINED BY THE COMPANY. THE COMPANY AGREES TO
PROVIDE PROMPTLY TO THE HOLDER OF THIS SECURITY, UPON WRITTEN REQUEST, THE ISSUE
PRICE, AMOUNT OF TAX ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY,
COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE. ANY SUCH WRITTEN REQUEST SHOULD
BE SENT TO THE COMPANY AT THE FOLLOWING ADDRESS: AMERICAN EXPRESS COMPANY, 200
VESEY STREET, NEW YORK, NEW YORK 10285, ATTENTION: SECRETARY.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH

                                 5.   A-1

<PAGE>

OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

     THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS
SECURITY, THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, 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, REGISTRATION.

     THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION 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 SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C)

                                      A-2

<PAGE>

PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RIGHTS OF THE
COMPANY AND THE WITHIN MENTIONED TRUSTEE PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM,
AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM
APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED AFTER THE RESALE
RESTRICTION TERMINATION DATE UPON THE REQUEST OF THE HOLDER AND THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATES AND/OR OTHER INFORMATION SATISFACTORY TO THE
COMPANY AND THE TRUSTEE, AS THE CASE MAY BE.]

     THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES that AT THE
TIME OF PURCHASE OF THIS SECURITY AND ON EACH DAY THROUGH AND INCLUDING THE DATE
OF DISPOSITION OF SUCH SECURITY EITHER (A) IS NOT AN EMPLOYEE BENEFIT PLAN (AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED ("ERISA")) OR A PLAN DESCRIBED IN SECTION 4975(E)(1) OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE") THAT IS SUBJECT TO SECTION 4975 OF
THE CODE, A GOVERNMENTAL PLAN, CHURCH PLAN (EACH, AS DEFINED IN ERISA) OR AN
ENTITY THE ASSETS OF WHICH ARE DEEMED TO BE "PLAN ASSETS" UNDER ERISA
REGULATIONS OR (B) THE ACQUISITION, CONVERSION, HOLDING AND DISPOSITION OF THIS
SECURITY BY SUCH HOLDER DOES NOT AND WILL NOT CONSTITUTE A PROHIBITED
TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A
GOVERNMENTAL PLAN OR CHURCH PLAN, ANY SUBSTANTIALLY SIMILAR LAW) UNLESS AN
EXEMPTION IS AVAILABLE WITH RESPECT TO SUCH TRANSACTIONS AND THE CONDITIONS OF
SUCH EXEMPTION HAVE BEEN SATISFIED.

                                      A-3

<PAGE>

                            AMERICAN EXPRESS COMPANY

                  1.85% Convertible Senior Debentures due 2033

No.                                               Original Principal Amount:
Issue Date: November 21, 2003                     CUSIP:

     AMERICAN EXPRESS COMPANY, a New York corporation (the "Company"), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the
Accreted Principal Amount (as defined in the Indenture referred to on the
reverse side of this Security) (including accrued Contingent Accretion, as
defined in the Indenture, if any) on December 1, 2033.

     This Security shall bear interest and Accreted Interest (as defined in the
Indenture) as specified on the reverse side of this Security and in the
Indenture. Contingent Interest, if any, on this Security, will be payable as
specified on the reverse side of this Security and in the Indenture. This
Security is convertible, is subject to redemption at the option of the Company
or purchase at the option of the Holder hereof and is subject to remarketing,
all as specified on the reverse side of this Security and in the Indenture.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

                                      A-4

<PAGE>

     IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed
this Indenture on behalf of the respective parties hereto as of the date first
above written.

                                       AMERICAN EXPRESS COMPANY

                                       By: /s/ DAVID L. YOWAN
                                           -------------------------------------
                                           Name: DAVID L. YOWAN
                                           Title: ASSISTANT TREASURER &
                                                  SR. VICE PRESIDENT

                                       U.S. BANK NATIONAL ASSOCIATION

                                       By: /s/ Patrick J. Crowley
                                           -------------------------------------
                                           Name: Patrick J. Crowley
                                           Title: Vice President

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                       AMERICAN EXPRESS COMPANY

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

Attest:

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

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

U.S. BANK NATIONAL ASSOCIATION, as Trustee, certifies that this is one of the
Securities referred to in the within-mentioned Indenture.

By:
   ------------------------------------
   Authorized Signature

Dated:

                                      A-5

<PAGE>

                       [FORM OF REVERSE SIDE OF SECURITY]

                  1.85% Convertible Senior Debentures due 2033

     This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities") limited in aggregate Original Principal
Amount to $2,000,000,000, issued under an Indenture, dated as of November 21,
2003 (the "Indenture"), between the Company and U.S. Bank National Association,
as Trustee (the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. Capitalized terms used and not otherwise defined in
this Security are used as defined in the Indenture.

1.   Interest.

     This Security will bear interest from November 21, 2003 or from the most
recent date to which interest has been paid or duly provided for, semi-annually
in arrears on June 1 and December 1 of each year (each, an "Interest Payment
Date"), subject to Section 1.09 of the Indenture, commencing June 1, 2004, at
the rate per annum equal to 1.85%. Interest on this Security shall be calculated
on the basis of a 360-day year composed of twelve 30-day months. Interest
payable on this Security on any Interest Payment Date will include interest for
the immediately preceding Interest Period. The interest so payable and
punctually paid or duly provided for on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest payment, which shall be the May 15
or November 15, as the case may be, immediately preceding the relevant Interest
Payment Date. Any interest which is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date shall forthwith cease to be payable
to the registered Holder hereof on the relevant Regular Record Date by virtue of
having been such Holder, and may be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Company, notice whereof shall be given to the Holders of
Securities not less than 10 days prior to such Special Record Date, or may be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture.

                                      A-6

<PAGE>

     From and after December 1, 2006, the Company will no longer be required to
pay cash interest unless the Company elects prior to any remarketing that
following such remarketing the Securities will bear cash interest pursuant to
Section 16.02(b) of the Indenture. The Original Principal Amount of this
Security shall accrete daily at the Applicable Yield for each Interest Period,
which shall be 0% (1) prior to December 1, 2006 and (2) during any period for
which the Company has elected pursuant to Section 16.02(b) that the Securities
will bear cash interest.

2.   Contingent Interest.

     Unless a Remarketing Reset Event occurs, from and after December 1, 2006,
the Company will pay Contingent Interest on this Security under the
circumstances and in the amounts described in Article 14 of the Indenture. Such
Contingent Interest, if any, shall be payable semi-annually in arrears on each
Interest Payment Date to the Holder of this Security as of the close of business
on the Regular Record Date relating to such Interest Payment Date.

     If a Remarketing Reset Event occurs, from and after the applicable
Remarketing Reset Event Date, the Company will no longer be required to
pay Contingent Interest.

3.   Contingent Accretion.

     Following the occurrence of a Remarketing Reset Event, the Company will pay
Contingent Accretion on this Security under the circumstances and in the amounts
described in Article 15 of the Indenture. Such Contingent Accretion, if any,
will be payable on the earliest Contingent Accretion Payment Date to occur.

     If, following the accrual of any Contingent Accretion, an event occurs as
specified in Section 15.02(c), such Contingent Accretion shall no longer be
payable.

4.   Interest on Overdue Amounts.

     If the Accreted Principal Amount (including any accrued Contingent
Accretion) hereof or any portion of such Accreted Principal Amount is not paid
when due (whether upon acceleration pursuant to Section 4.02 of the Indenture,
upon the dates set for payment of the Redemption Price, Purchase Price or Change
in Control Purchase Price, Remarketing Purchase Price, or upon the Stated
Maturity of this Security) or if interest due hereon (including Contingent
Interest and Liquidated Damages, if any) (or any portion of such interest), is
not paid when due, then in each such case the overdue amount shall, to the
extent permitted by law, bear interest at the rate then borne by this Security
or, if any overdue amount exists on or after December 1, 2006, at the Applicable
Yield or

                                      A-7

<PAGE>

the Reset Yield or Reset Rate, if any, of this Security for the applicable
Interest Period, compounded at the end of such Interest Period, which interest
shall accrue from the date such overdue amount was originally due to the date
payment of such amount, including interest thereon, has been made or duly
provided for. All such interest shall be payable as set forth in the Indenture.

5.   Method of Payment.

     Subject to the terms and conditions of the Indenture, the Company will make
payments in respect of Redemption Price, Purchase Price, Remarketing Purchase
Price, Change in Control Purchase Price and at Stated Maturity to Holders who
surrender Securities to a Paying Agent to collect such payments in respect of
the Securities; provided that if any Redemption Date, Purchase Date, Remarketing
Purchase Date or Change in Control Purchase Date is an Interest Payment Date,
accrued and unpaid interest (including Contingent Interest and Liquidated
Damages, if any) shall be paid to the Holder of record as of the applicable
Regular Record Date. The Company will pay cash amounts in money of the United
States that at the time of payment is legal tender for payment of public and
private debts. However, the Company may make such cash payments by check payable
in such money; provided that payment by wire transfer of immediately available
funds will be required with respect to principal (including accrued Contingent
Accretion, if any) of and interest (including Contingent Interest, if any) on
all Global Securities and all Securities of Holders of more than $25,000,000
aggregate Original Principal Amount of Securities that have requested such
method of payment and provided wire transfer instructions to the Company or the
Paying Agent. If any Interest Payment Date (other than an Interest Payment Date
coinciding with the Stated Maturity or earlier Redemption Date, Purchase Date,
Remarketing Purchase Date or Change in Control Purchase Date) falls on a day
that is not a Business Day, such Interest Payment Date will be postponed to the
next succeeding Business Day and no interest on such payment will accrue for the
period from and after the Interest Payment Date to such next succeeding Business
Day. If the Stated Maturity, Redemption Date, Purchase Date, Remarketing
Purchase Date or Change in Control Purchase Date of this Security would fall on
a day that is not a Business Day, the required payment of interest, if any, and
principal will be made on the next succeeding Business Day and no interest on
such payment will accrue and no principal will accrete for the period from and
after the Stated Maturity, Redemption Date, Purchase Date, Remarketing Purchase
Date or Change in Control Purchase Date to such next succeeding Business Day.

6.   Paying Agent, Conversion Agent, Calculation Agent and Registrar.

     Initially, the Trustee will act as Paying Agent, Conversion Agent,
Calculation Agent and Registrar. The Company may appoint and change any Paying
Agent, Conversion Agent, Calculation Agent, Registrar or co-registrar

                                      A-8

<PAGE>

without notice, other than notice to the Trustee. The Company or any of its
Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion
Agent, Calculation Agent, Registrar or co-registrar.

7.   Indenture.

     The terms of the Securities include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939, as
in effect from time to time (the "TIA"). The Securities are subject to all such
terms, and Holders are referred to the Indenture and the TIA for a statement of
those terms.

     The Securities are general unsecured obligations. The Indenture does not
limit other indebtedness of the Company, secured or unsecured.

8.   Redemption at the Option of the Company.

     No sinking fund is provided for the Securities. Prior to December 1, 2006,
the Securities shall not be redeemable at the option of the Company. Unless a
Remarketing Reset Event has occurred, beginning on December 1, 2006 and until
the earlier of the date on which a Remarketing Reset Event occurs and Stated
Maturity, the Securities are redeemable for cash as a whole, or from time to
time in part, at the option of the Company at a Redemption Price equal to 100%
of the Accreted Principal Amount of the Securities, plus accrued and unpaid
interest (including Contingent Interest and Liquidated Damages, if any) to, but
excluding, the Redemption Date, as provided in Article 10 of the Indenture.

     If the Company redeems less than all of the outstanding Securities, the
Trustee will select the Securities to be redeemed (i) by lot; (ii) pro rata; or
(iii) by another method the Trustee considers fair and appropriate. If the
Trustee selects a portion of a Holder's Securities for partial redemption and
the Holder converts a portion of the same Securities, the converted portion
shall be deemed to be from the portion selected for redemption. The Company may
not redeem less than all of the outstanding Securities if the Accreted Principal
Amount has been accelerated and such acceleration has not be rescinded.

9.   Notice of Redemption.

     Notice of redemption will be mailed at least 30 days but not more than 60
days before the Redemption Date to each Holder of Securities to be redeemed at
the Holder's registered address. If money sufficient to pay the Redemption Price
of all Securities (or portions thereof) to be redeemed on the Redemption Date is
deposited with the Paying Agent prior to or on the Redemption Date, immediately
after such Redemption Date interest shall cease to accrue and

                                      A-9

<PAGE>

principal will cease to accrete on such Securities or portions thereof.
Securities in denominations larger than $1,000 Original Principal Amount may be
redeemed in part but only in integral multiples of $1,000.

10.  Purchase By the Company at the Option of the Holder.

     Unless a Remarketing Reset Event occurs, each Holder has the right to
require the Company to purchase the Securities held by such Holder on December
1, 2006, 2008, 2013, 2018, 2023 and 2028, or if any such day is not a Business
Day, the next succeeding Business Day (each, a "Purchase Date"), if this
Security is not immediately convertible into Common Stock on such Purchase Date.
If required by any Holder, the Company shall purchase Securities for cash at a
Purchase Price equal to 100% of the Accreted Principal Amount thereof, plus
accrued and unpaid interest (including Contingent Interest and Liquidated
Damages, if any) to, but excluding, the Purchase Date, upon delivery of a
Purchase Notice containing the information set forth in the Indenture, at any
time from the opening of business on the date that is 20 Business Days prior to
such Purchase Date until the close of business on such Purchase Date and upon
delivery or book-entry transfer of the Securities to the Paying Agent by the
Holder as set forth in the Indenture.

     Unless a Remarketing Reset Event occurs, at the option of the Holder and
subject to the terms and conditions of the Indenture, the Company shall purchase
all or a portion of the Securities held by such Holder on the date specified by
the Company that is not less than 20 nor more than 35 Business Days after the
occurrence of a Change in Control of the Company occurring prior to Stated
Maturity for a Change in Control Purchase Price equal to 100% of the Accreted
Principal Amount thereof, plus accrued and unpaid interest (including Contingent
Interest and Liquidated Damages, if any) to, but excluding, the Change in
Control Purchase Date, unless such Change in Control Purchase Date falls after a
Regular Record Date and on or prior to the corresponding Interest Payment Date,
in which case the Company shall pay the full amount of accrued and unpaid
interest (including Contingent Interest and Liquidated Damages, if any) payable
on such Interest Payment Date to the Holder at the close of business on such
Regular Record Date.

     Holders have the right to withdraw any Purchase Notice or Change in Control
Purchase Notice, as the case may be, by delivering to the Paying Agent a written
notice of withdrawal in accordance with the provisions of the Indenture.

     As provided in the Indenture, if cash sufficient to pay the Purchase Price,
Remarketing Purchase Price or Change in Control Purchase Price, as the case may
be, of all Securities or portions thereof to be purchased as of the Purchase
Date, Remarketing Purchase Date or the Change in Control Purchase Date, as the
case may be, is deposited with the Paying Agent on the Business Day

                                      A-10

<PAGE>

following the Purchase Date, Remarketing Purchase Date or the Change in Control
Purchase Date, as the case may be, such Securities shall cease to be
outstanding, all interest (including Contingent Interest, if any) ceases to
accrue and principal ceases to accrete on such Securities (or portions thereof)
immediately after such Purchase Date, Remarketing Purchase Date or Change in
Control Purchase Date, as the case may be, and the Holder thereof shall have no
other rights as such (other than the right to receive the Purchase Price,
Remarketing Purchase Price or Change in Control Purchase Price, as the case may
be, upon surrender or book-entry transfer of such Security).

11.  Conversion.

     Subject to the terms of the Indenture, the Holder of a Security may convert
the Security into shares of Common Stock at the Conversion Rate under the
circumstances set forth in Sections 11.02, 11.03, 11.04, 11.05 and 11.06 of the
Indenture. A Security in respect of which a Holder has delivered a Purchase
Notice or a Change in Control Purchase Notice exercising the option of such
Holder to require the Company to purchase such Security may be converted only if
such notice of exercise is withdrawn in accordance with the terms of the
Indenture. The Conversion Rate for the Securities on any Conversion Date shall
be determined as set forth in the Indenture.

     The Company shall deliver cash or a check in lieu of any fractional share
of Common Stock.

     A Holder's right to convert the Securities into Common Stock of the Company
is also subject to the Company's right to elect to pay such Holder cash in lieu
of Common Stock as set forth in Section 11.07 of the Indenture.

     A Holder may convert a portion of a Security if the Original Principal
Amount of such portion is $1,000 or an integral multiple of $1,000. No payment
or adjustment shall be made for dividends on the Common Stock except as provided
in the Indenture. On conversion of a Security, except for conversion during the
period from the close of business on any Regular Record Date immediately
preceding any Interest Payment Date to the close of business on the Business Day
immediately preceding such Interest Payment Date, in which case the Holder on
such Regular Record Date shall receive the interest payable on such Interest
Payment Date, that portion of accrued and unpaid interest (including Contingent
Interest, if any) on the converted Security attributable to the period from the
most recent Interest Payment Date (or, if no Interest Payment Date has occurred,
from the Issue Date) through the Conversion Date shall not be cancelled,
extinguished or forfeited, but rather shall be deemed to be paid in full to the
Holder thereof through delivery of the Common Stock (together with the cash
payment, if any, in lieu of fractional shares), or cash in lieu thereof, in
exchange for the Security being converted pursuant to the provisions hereof.

                                      A-11

<PAGE>

     Securities or portions thereof surrendered for conversion during the period
from the close of business on any Regular Record Date immediately preceding any
Interest Payment Date to the close of business on the Business Day immediately
preceding such Interest Payment Date shall be accompanied by payment to the
Company or its order, in New York Clearing House funds or other funds acceptable
to the Company, of an amount equal to the interest payable on such Interest
Payment Date with respect to the Original Principal Amount of Securities or
portions thereof being surrendered for conversion; provided that no such payment
need be made if (1) the Company has specified a Redemption Date that occurs
during the period from the close of business on a Regular Record Date to the
close of business on the Interest Payment Date to which such Regular Record Date
relates, (2) the Company has specified a Change in Control Purchase Date during
such period or (3) only to the extent of overdue interest or overdue Contingent
Interest, any overdue interest or overdue Contingent Interest exists on the
Conversion Date with respect to the Securities converted.

     No fractional shares will be issued upon conversion; in lieu thereof, an
amount will be paid in cash based upon the Applicable Stock Price.

     The Company agrees, and each Holder and any beneficial owner of a Security
by its purchase thereof shall be deemed to agree, to treat, for United States
federal income tax purposes, the fair market value of the Common Stock received
upon the conversion of a Security (together with any cash payment in lieu of
fractional shares) or cash, or a combination of cash and Common Stock as a
contingent payment on the Security for purposes of the contingent payment
regulations.

     To convert a Security, a Holder must follow the procedures set forth in
Section 11.07 of the Indenture.

     The Conversion Rate will be adjusted as set forth in Article 11 of the
Indenture

12.  Denominations; Transfer; Exchange.

         The Securities are in fully registered form, without coupons, in
denominations of $1,000 of Original Principal Amount and integral multiples of
$1,000. A Holder may transfer or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture. The Registrar need not transfer
or exchange any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed)
or any Securities in respect of which a Purchase Notice or Change in Control

                                      A-12

<PAGE>

Purchase Notice has been given and not withdrawn (except, in the case of a
Security to be purchased in part, the portion of the Security not to be
purchased) or any Securities for a period of 15 days before the mailing of a
notice of redemption of Securities to be redeemed.

13.  Persons Deemed Owners.

     The registered Holder of this Security may be treated as the owner of this
Security for all purposes.

14.  Unclaimed Money or Securities.

     The Trustee and the Paying Agent shall return to the Company upon written
request any money or securities held by them for the payment of any amount with
respect to the Securities that remains unclaimed for two years subject to
applicable unclaimed property law. After return to the Company, Holders entitled
to the money or securities must look to the Company for payment as general
creditors unless an applicable abandoned property law designates another person.

15.  Amendment; Waiver.

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent of the Holders of at
least a majority in aggregate Original Principal Amount of the Securities at the
time outstanding and (ii) certain Defaults may be waived with the written
consent of the Holders of a majority in aggregate Original Principal Amount of
the Securities at the time outstanding. The Company and the Trustee may amend
the Indenture under certain circumstances without the consent of the Holders, as
described in the Indenture.

16.  Defaults and Remedies.

     If an Event of Default occurs and is continuing, the Trustee, or the
Holders of at least 25% in aggregate Original Principal Amount of the Securities
at the time outstanding, may declare all the Securities to be due and payable
immediately.

     Holders may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee may refuse to enforce the Indenture or the
Securities unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in aggregate Original Principal
Amount of the Securities at the time outstanding may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders notice of
any continuing Default (except a Default in payment of amounts specified in
clause (i) or (ii) of

                                      A-13

<PAGE>

Section 4.01 of the Indenture) if it determines that withholding notice is in
their interests.

17.  Yield Reset and Remarketing.

     If a Remarketing Reset Event occurs, then the Securities shall be
remarketed and the Reset Yield or Reset Rate, as the case may be, shall be
established as set forth in Article 16 of the Indenture.

     If a Failed Remarketing occurs on any Remarketing Reset Date, each Holder
of Securities will have the right to require the Company to purchase all or a
portion of its Securities on such Remarketing Reset Date for cash. Holders of
Securities will be deemed to have exercised this right unless such Holders
elected not to participate in the applicable remarketing. Holders of Securities
who elected not to participate in the remarketing must notify the Paying Agent
as provided in Article 16 of the Indenture of the number of Securities, if any,
they want the Company to purchase. The Company shall purchase such Securities at
a purchase price equal to 100% of the Accreted Principal Amount thereof as of
the applicable Remarketing Reset Date, plus accrued Contingent Accretion, if
any, and accrued and unpaid interest, if any, to, but excluding such Remarketing
Reset Date as provided in the Indenture.

18.  Trustee Dealings with the Company.

     Subject to certain limitations imposed by the TIA, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

19.  No Recourse Against Others.

     An incorporator, a director, officer, employee or stockholder, as such, of
the Company, past, present or future, shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Holder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Securities.

20.  Authentication.

     This Security shall not be valid until an authorized signatory of the
Trustee or any Authenticating Agent manually signs the Trustee's Certificate of
Authentication on the other side of this Security.

                                      A-14

<PAGE>

21.  Abbreviations.

     Customary abbreviations may be used in the name of a Holder or an assignee,
such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT
TEN (=joint tenants with right of survivorship and not as tenants in common),
CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

22.  GOVERNING LAW.

     THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS
SECURITY, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

                                   ----------

     The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture.

          American Express Company
          200 Vesey Street
          New York, New York 10285
          Attention: Secretary

                                      A-15

<PAGE>

                                                                      Schedule I

                 [Include Schedule I only for a Global Security]

                            AMERICAN EXPRESS COMPANY
                   1.85% Convertible Senior Debenture Due 2033

No. __________

The initial Original Principal Amount of this Global Security is $_____________.

<TABLE>
<CAPTION>
=========================================================================================================
                                           Notation Explaining Original         Authorized Signature of
Date      Original Principal Amount         Principal Amount Recorded            Trustee or Custodian
---------------------------------------------------------------------------------------------------------
<S>       <C>                              <C>                                  <C>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

=========================================================================================================
</TABLE>

                                      A-16

<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

     For value received ______________________________hereby sell(s), assign(s)
and transfer(s) unto ___________________________________ (Please insert social
security or other Taxpayer Identification Number of assignee) the within
Security, and hereby irrevocably constitutes and appoints
______________________________________ attorney to transfer said Security on the
books of the Company, with full power of substitution in the premises.

     In connection with any transfer of the Security prior to the expiration of
the holding period applicable to sales thereof under Rule 144(k) under the
Securities Act (or any successor provision) (other than any transfer pursuant to
a registration statement that has been declared effective under the Securities
Act), the undersigned confirms that such Security is being transferred:

     [_]  To American Express Company (the "Company") or a subsidiary thereof;
          or

     [_]  To a "qualified institutional buyer" in compliance with Rule 144A
          under the Securities Act of 1933, as amended; or

     [_]  Pursuant to a Registration Statement which has been declared effective
          under the Securities Act of 1933, as amended, and which continues to
          be effective at the time of transfer; or

     [_]  Pursuant to and in compliance with another available exemption from
          the registration requirements of the Securities Act of 1933, as
          amended.

     Unless one of the boxes is checked, the Trustee or Registrar will refuse to
register any of the Securities evidenced by this certificate in the name of any
person other than the registered holder thereof.

Dated:
       ----------------------

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

                                        ----------------------------------------
                                        Signature(s)

                                        Signature(s) must be guaranteed by an
                                        "eligible guarantor institution" meeting
                                        the requirements of the Security
                                        registrar, which requirements include
                                        membership or participation in the
                                        Security Transfer Agent Medallion
                                        Program ("STAMP") or such other
                                        "signature guarantee program" as may be
                                        determined by the Security registrar in
                                        addition to, or in substitution for,
                                        STAMP, al in accordance with the
                                        Securities Exchange Act of 1934, as
                                        amended.

                                        ----------------------------------------
                                                 Signature Guarantee

                                       B-1

<PAGE>

                                CONVERSION NOTICE

To convert this Security into Common Stock of the Company, check the box:

To convert only part of this Security, state the Original Principal Amount to be
converted (which must be $1,000 or an integral multiple of $1,000): $ __________

If you want the stock certificate made out in another person's name, fill in the
form below:

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

                 (Insert other person's soc. sec. or tax ID no.)

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

            (Print or type other person's name, address and zip code)

Your
Signature:
           -----------------------------------

(Sign exactly as your name appears on the other side of this Security)

                                       B-1

<PAGE>

                                 PURCHASE NOTICE

TO:  AMERICAN EXPRESS COMPANY

     The undersigned registered owner of this Security hereby irrevocably
acknowledges receipt of a notice from American Express Company (the "Company")
regarding the right of holders to elect to require the Company to purchase the
Securities and requests and instructs the Company to purchase the entire
Original Principal Amount of this Security, or portion thereof (which is $1,000
Original Principal Amount or an integral multiple thereof) designated below, in
accordance with the terms of the Indenture at the price of 100% of the Accreted
Principal Amount (including any accrued Contingent Accretion) or proportional
portion thereof, together with accrued interest (including Contingent Interest
and Liquidated Damages, if any) to, but excluding, the Purchase Date, to the
registered holder hereof. Capitalized terms used herein but not defined shall
have the meanings ascribed to such terms in the Indenture. The Securities shall
be purchased by the Company as of the applicable Purchase Date or Remarketing
Purchase Date pursuant to the terms and conditions specified in the Indenture.
This election is made pursuant to:

[_]  Article 12, Purchase at Option of Holders at December 1, 2006, 2008, 2013,
     2018, 2023 and 2028, or

[_]  Section 16.04(a), Right to Require Repurchase Upon a Failed Remarketing.

     Dated:

     Signature(s):

     NOTICE: The above signatures of the holder(s) hereof must correspond with
the name as written upon the face of the Security in every particular without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original Principal Amount to be purchased (if less than all):

     Social Security or Other Taxpayer Identification Number:

                                       A-2

<PAGE>

     OPTION OF HOLDER TO ELECT PURCHASE ON CHANGE IN CONTROL

TO:  AMERICAN EXPRESS COMPANY
     U.S. BANK NATIONAL ASSOCIATION

     The undersigned registered owner of this Security hereby irrevocably
acknowledges receipt of a notice from American Express Company (the "Company")
regarding the right of holders to elect to require the Company to purchase the
Securities upon a Change in Control and requests and instructs the Company
pursuant to Section 13.01 to purchase the entire Original Principal Amount of
this Security, or portion thereof (which is $1,000 Original Principal Amount or
an integral multiple thereof) designated below, in accordance with the terms of
the Indenture at the price of 100% of the Accreted Principal Amount or
proportional portion thereof, together with accrued interest (including
Contingent Interest and Liquidated Damages, if any) to, but excluding, the
Change in Control Purchase Date, to the registered holder hereof. Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the Indenture. The Securities shall be repurchased by the Company as of the
Change in Control Purchase Date pursuant to the terms and conditions specified
in the Indenture.

     Dated:

     Signature(s):

     NOTICE: The above signatures of the holder(s) hereof must correspond with
the name as written upon the face of the Security in every particular without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original Principal Amount to be purchased (if less than all):

     Social Security or Other Taxpayer Identification Number:

                                       A-3

<PAGE>

                       ELECTION NOT TO REMARKET SECURITIES

TO:  AMERICAN EXPRESS COMPANY

The undersigned registered owner of this Security hereby elects not to have
remarketed the entire Original Principal Amount of this Security, or portion
thereof (which is $1,000 Original Principal Amount or an integral multiple
thereof) designated below, on the next [Remarketing Reset Event Date if a
Remarketing Reset Event occurs] [Remarketing Reset Date] in accordance with the
terms of the Indenture and the Remarketing Agreement. Capitalized terms used
herein but not defined shall have the meanings ascribed to such terms in the
Indenture. The undersigned acknowledges that in the event of a Failed
Remarketing, it will not have the right to require the Company to repurchase
this Security unless it separately provides the Company with a duly executed
Purchase Notice within the required time period.

     Dated:

     Signature(s):

     NOTICE: The above signatures of the holder(s) hereof must correspond with
the name as written upon the face of the Security in every particular without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original Principal Amount to be purchased (if less than all):

     Social Security or Other Taxpayer Identification Number:

                                       A-4

<PAGE>

                                                                         ANNEX B

                           PROJECTED PAYMENT SCHEDULE

<TABLE>
<CAPTION>
             Projected                      Projected
   Date       Payment             Date       Payment
----------   ---------         ---------   ----------
<S>          <C>               <C>         <C>
11/21/2003   1,000.00           6/1/2019        0.00
  6/1/2004      (9.76)         12/1/2019        0.00
 12/1/2004      (9.25)          6/1/2020        0.00
  6/1/2005      (9.25)         12/1/2020        0.00
 12/1/2005      (9.25)          6/1/2021        0.00
  6/1/2006      (9.25)         12/1/2021        0.00
 12/1/2006      (9.25)          6/1/2022        0.00
  6/1/2007       0.00          12/1/2022        0.00
 12/1/2007       0.00           6/1/2023        0.00
  6/1/2008       0.00          12/1/2023        0.00
 12/1/2008       0.00           6/1/2024        0.00
  6/1/2009       0.00          12/1/2024        0.00
 12/1/2009       0.00           6/1/2025        0.00
  6/1/2010       0.00          12/1/2025        0.00
 12/1/2010       0.00           6/1/2026        0.00
  6/1/2011       0.00          12/1/2026        0.00
 12/1/2011       0.00           6/1/2027        0.00
  6/1/2012       0.00          12/1/2027        0.00
 12/1/2012       0.00           6/1/2028        0.00
  6/1/2013       0.00          12/1/2028        0.00
 12/1/2013       0.00           6/1/2029        0.00
  6/1/2014       0.00          12/1/2029        0.00
 12/1/2014       0.00           6/1/2030        0.00
  6/1/2015       0.00          12/1/2030        0.00
 12/1/2015       0.00           6/1/2031        0.00
  6/1/2016       0.00          12/1/2031        0.00
 12/1/2016       0.00           6/1/2032        0.00
  6/1/2017       0.00          12/1/2032        0.00
 12/1/2017       0.00           6/1/2033        0.00
  6/1/2018       0.00          12/1/2033   (6,027.82)
 12/1/2018       0.00
</TABLE>

                                       B-1EXHIBIT 4.1

EXECUTION COPY

CIT EQUIPMENT COLLATERAL 2006-VT2,

as Issuer,

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

not in its individual capacity but solely in its capacity

as Indenture Trustee

INDENTURE

Dated as of October 1, 2006

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
$258,000,000

	
 

	
 

	
5.34435%
	
 

	
Class A-1
  Receivable-Backed Notes

	
 

	
 

	
$144,000,000

	
 

	
 

	
5.19%
	
 

	
Class A-2
  Receivable-Backed Notes

	
 

	
 

	
$180,000,000

	
 

	
 

	
5.07%
	
 

	
Class A-3
  Receivable-Backed Notes

	
 

	
 

	
$100,524,000

	
 

	
 

	
5.05%
	
 

	
Class A-4
  Receivable-Backed Notes

	
 

	
 

	
$  16,689,000
	
 

	
 

	
5.24%
	
 

	
Class B
  Receivable-Backed Notes

	
 

	
 

	
$  20,397,000
	
 

	
 

	
5.29%
	
 

	
Class C
  Receivable-Backed Notes

	
 

	
 

	
$  22,264,116
	
 

	
 

	
5.46%
	
 

	
Class D
  Receivable-Backed Notes

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
ARTICLE ONE

	
DEFINITIONS
  AND INCORPORATION BY REFERENCE

	
2

	
 

	
 

	
 

	
 

	
 

	
Section 1.01

	
Definitions

	
2

	
 

	
Section 1.02

	
Incorporation by Reference of Trust
  Indenture Act

	
8

	
 

	
Section 1.03

	
Rules of Construction

	
9

	
 

	
 

	
 

	
 

	
 

	
ARTICLE TWO

	
THE NOTES

	
9

	
 

	
 

	
 

	
 

	
 

	
Section 2.01

	
Form

	
9

	
 

	
Section 2.02

	
Execution, Authentication and Delivery

	
10

	
 

	
Section 2.03

	
Temporary Notes

	
10

	
 

	
Section 2.04

	
Registration; Registration of Transfer and
  Exchange

	
11

	
 

	
Section 2.05

	
Mutilated, Destroyed, Lost or Stolen Notes

	
12

	
 

	
Section 2.06

	
Persons Deemed Owner

	
13

	
 

	
Section 2.07

	
Payment of Principal and Interest; Defaulted
  Interest

	
13

	
 

	
Section 2.08

	
Cancellation

	
14

	
 

	
Section 2.09

	
Book-Entry Notes

	
14

	
 

	
Section 2.10

	
Notices to Clearing Agency

	
15

	
 

	
Section 2.11

	
Definitive Notes

	
15

	
 

	
Section 2.12

	
Release of Collateral

	
16

	
 

	
Section 2.13

	
Tax Treatment

	
16

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
  THREE

	
COVENANTS;
  REPRESENTATIONS AND WARRANTIES

	
16

	
 

	
 

	
 

	
 

	
 

	
Section 3.01

	
Payment of Principal and Interest

	
16

	
 

	
Section 3.02

	
Maintenance of Office or Agency

	
16

	
 

	
Section 3.03

	
Money for Payments to be Held in Trust

	
17

	
 

	
Section 3.04

	
Existence

	
18

	
 

	
Section 3.05

	
Protection of Collateral

	
18

	
 

	
Section 3.06

	
Performance of Obligations; Servicing of
  Contracts

	
19

	
 

	
Section 3.07

	
Negative Covenants

	
20

	
 

	
Section 3.08

	
Issuer May Consolidate, etc., Only on
  Certain Terms

	
21

	
 

	
Section 3.09

	
Successor or Transferee

	
23

	
 

	
Section 3.10

	
No Other Business

	
23

	
 

	
Section 3.11

	
No Borrowing

	
23

	
 

	
Section 3.12

	
Notice of Events of Default

	
23

	
 

	
Section 3.13

	
Further Instruments and Acts

	
23

	
 

	
Section 3.14

	
Compliance with Laws

	
23

	
 

	
Section 3.15

	
Amendments of Trust Agreement

	
23

	
 

	
Section 3.16

	
Removal of Administrator

	
23

	
 

	
Section 3.17

	
Representations and Warranties of Issuer

	
24

	
 

	
 

	
 

	
 

	
 

	
ARTICLE FOUR

	
SATISFACTION
  AND DISCHARGE

	
24

	
 

	
 

	
 

	
 

	
 

	
Section 4.01

	
Satisfaction and Discharge of Indenture

	
24

	
 

	
Section 4.02

	
Application of Trust Money

	
25

	
 

	
Section 4.03

	
Repayment of Moneys Held by Paying Agent

	
26

	
 

(i)

TABLE OF CONTENTS
(continued)

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
Section 4.04

	
Release of Collateral

	
26

	
 

	
 

	
 

	
 

	
 

	
ARTICLE FIVE

	
REMEDIES

	
26

	
 

	
 

	
 

	
 

	
 

	
Section 5.01

	
Events of Default

	
26

	
 

	
Section 5.02

	
Rights Upon Event of Default; Notice

	
27

	
 

	
Section 5.03

	
Collection of Indebtedness and Suits for Enforcement by Indenture
  Trustee; Authority of Indenture Trustee

	
28

	
 

	
Section 5.04

	
Remedies

	
30

	
 

	
Section 5.05

	
Optional Preservation of the Contracts

	
31

	
 

	
Section 5.06

	
Priorities

	
31

	
 

	
Section 5.07

	
Limitation of Suits

	
31

	
 

	
Section 5.08

	
Unconditional Rights of Noteholders to Receive Principal and Interest

	
32

	
 

	
Section 5.09

	
Restoration of Rights and Remedies

	
32

	
 

	
Section 5.10

	
Rights and Remedies Cumulative

	
32

	
 

	
Section 5.11

	
Delay or Omission Not a Waiver

	
32

	
 

	
Section 5.12

	
Control by Noteholders

	
33

	
 

	
Section 5.13

	
Waiver of Past Defaults

	
33

	
 

	
Section 5.14

	
Undertaking for Costs

	
33

	
 

	
Section 5.15

	
Waiver of Stay or Extension Laws

	
34

	
 

	
Section 5.16

	
Action on Notes

	
34

	
 

	
Section 5.17

	
Performance and Enforcement of Certain
  Obligations

	
34

	
 

	
 

	
 

	
 

	
 

	
ARTICLE SIX

	
THE
  INDENTURE TRUSTEE

	
35

	
 

	
 

	
 

	
 

	
 

	
Section 6.01

	
Duties of Indenture Trustee

	
35

	
 

	
Section 6.02

	
Rights of Indenture Trustee

	
37

	
 

	
Section 6.03

	
Individual Rights of Indenture Trustee

	
38

	
 

	
Section 6.04

	
Indenture Trustee’s Disclaimer

	
38

	
 

	
Section 6.05

	
Notice of Defaults

	
38

	
 

	
Section 6.06

	
Reports by Indenture Trustee to Holders

	
39

	
 

	
Section 6.07

	
Compensation and Indemnity

	
39

	
 

	
Section 6.08

	
Replacement of Indenture Trustee

	
40

	
 

	
Section 6.09

	
Successor Indenture Trustee by Merger

	
41

	
 

	
Section 6.10

	
Appointment of Co-Indenture Trustee or Separate Indenture Trustee

	
41

	
 

	
Section 6.11

	
Eligibility

	
43

	
 

	
Section 6.12

	
Preferential Collection of Claims Against Issuer

	
43

	
 

	
Section 6.13

	
Representations and Warranties of Indenture Trustee

	
43

	
 

	
Section 6.14

	
Execution of Transaction Documents

	
44

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
  SEVEN

	
NOTEHOLDERS’
  LISTS AND REPORTS

	
44

	
 

	
 

	
 

	
 

	
 

	
Section 7.01

	
Issuer to Furnish Indenture Trustee Names and Addresses of
  Noteholders

	
44

	
 

(ii)

TABLE OF CONTENTS
(continued)

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
Section 7.02

	
Preservation of Information; Communication to Noteholders

	
44

	
 

	
Section 7.03

	
Reports by Issuer

	
45

	
 

	
Section 7.04

	
Reports by Indenture Trustee

	
45

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
  EIGHT

	
ACCOUNTS,
  DISBURSEMENTS AND RELEASES

	
46

	
 

	
 

	
 

	
 

	
 

	
Section 8.01

	
Collection of Money

	
46

	
 

	
Section 8.02

	
Trust Accounts

	
46

	
 

	
Section 8.03

	
General Provisions Regarding Accounts

	
46

	
 

	
Section 8.04

	
Release of Collateral

	
47

	
 

	
 

	
 

	
 

	
 

	
ARTICLE NINE

	
SUPPLEMENTAL
  INDENTURES

	
48

	
 

	
 

	
 

	
 

	
 

	
Section 9.01

	
Supplemental Indentures Without Consent of Noteholders

	
48

	
 

	
Section 9.02

	
Supplemental Indentures With Consent of Noteholders

	
49

	
 

	
Section 9.03

	
Execution of Supplemental Indentures

	
50

	
 

	
Section 9.04

	
Effect of Supplemental Indenture

	
50

	
 

	
Section 9.05

	
Conformity With Trust Indenture Act

	
51

	
 

	
Section 9.06

	
Reference in Notes to Supplemental Indentures

	
51

	
 

	
 

	
 

	
 

	
 

	
ARTICLE TEN

	
REDEMPTION

	
51

	
 

	
 

	
 

	
 

	
 

	
Section 10.01

	
Redemption

	
51

	
 

	
Section 10.02

	
Form of Redemption Notice

	
51

	
 

	
Section 10.03

	
Notes Payable on Redemption Date

	
52

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
  ELEVEN

	
MISCELLANEOUS

	
52

	
 

	
 

	
 

	
 

	
 

	
Section 11.01

	
Compliance Certificates and Opinions, Etc

	
52

	
 

	
Section 11.02

	
Form of Documents Delivered to Indenture Trustee

	
53

	
 

	
Section 11.03

	
Acts of Noteholders

	
54

	
 

	
Section 11.04

	
Notices

	
54

	
 

	
Section 11.05

	
Notices to Noteholders; Waiver

	
54

	
 

	
Section 11.06

	
Alternate Payment and Notice Provisions

	
55

	
 

	
Section 11.07

	
Effect of Headings and Table of Contents

	
55

	
 

	
Section 11.08

	
Successors and Assigns

	
55

	
 

	
Section 11.09

	
Separability

	
55

	
 

	
Section 11.10

	
Benefits of Indenture

	
55

	
 

	
Section 11.11

	
Legal Holidays

	
56

	
 

	
Section 11.12

	
Governing Law

	
56

	
 

	
Section 11.13

	
Counterparts

	
56

	
 

	
Section 11.14

	
Recording of Indenture

	
56

	
 

	
Section 11.15

	
Trust Obligation

	
56

	
 

	
Section 11.16

	
No Petition

	
56

	
 

	
Section 11.17

	
Inspection

	
57

	
 

	
Section 11.18

	
Conflict with Trust Indenture Act

	
57

	
 

(iii)

TABLE OF CONTENTS
(continued)

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
Section 11.19

	
Communication by Noteholders With Other Noteholders

	
57

	
 

	
Section 11.20

	
Trust Indenture Act Controls

	
57

	
 

	
Section 11.21

	
Limited Recourse

	
57

	
 

	
Section 11.22

	
Waiver of Jury Trial

	
57

	
 

	
Section 11.23

	
Force Majeure

	
57

	
 

	
 

	
 

	
 

	
 

	
Schedule A

	
List of
  Contracts

	
 

	
 

	
 

	
 

	
 

	
 

	
EXHIBITS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Exhibit A-1

	
Form of
  Class A-1 Note

	
A-1-1

	
 

	
Exhibit A-2

	
Form of
  Class A-2 Note

	
A-2-1

	
 

	
Exhibit A-3

	
Form of
  Class A-3 Note

	
A-3-1

	
 

	
Exhibit A-4

	
Form of
  Class A-4 Note

	
A-4-1

	
 

	
Exhibit B

	
Form of
  Class B Note

	
B-1

	
 

	
Exhibit C

	
Form of
  Class C Note

	
C-1

	
 

	
Exhibit D

	
Form of
  Class D Note

	
D-1

	
 

(iv)

CROSS REFERENCE TABLE

	
 

	
 

	
 

	
Trust
Indenture

Act of 1939

Section 

	
 

	
Indenture

Section 

	

	
 

	

	
310(a)

	
 

	
6.11

	
310(b)

	
 

	
6.11

	
310(c)

	
 

	
N.A.

	
311(a)

	
 

	
6.12

	
311(b)

	
 

	
6.12

	
311(c)

	
 

	
N.A.

	
312(a)

	
 

	
7.01, 7.02

	
312(b)

	
 

	
7.02, 11.19

	
312(c)

	
 

	
7.02

	
313(a)

	
 

	
7.04

	
313(b)

	
 

	
7.04

	
313(c)

	
 

	
7.04

	
314(a)

	
 

	
7.03

	
314(b)

	
 

	
3.05, 7.03

	
314(c)

	
 

	
11.01

	
314(d)

	
 

	
11.01

	
314(e)

	
 

	
11.01

	
314(f)

	
 

	
N.A.

	
315(a)

	
 

	
6.01

	
315(b)

	
 

	
6.05

	
315(c)

	
 

	
6.01

	
315(d)

	
 

	
6.01

	
315(e)

	
 

	
5.14

	
316(a)

	
 

	
2.07, 5.04

	
316(b)

	
 

	
9.02

	
316(c)

	
 

	
N.A.

	
317(a)

	
 

	
5.03

	
317(b)

	
 

	
3.03

	
318(a)

	
 

	
11.18

(v)

               This
Indenture, dated as of October 1, 2006 (this “Indenture”), is between CIT
EQUIPMENT COLLATERAL 2006-VT2, a Delaware statutory trust (the “Issuer”) and
Deutsche Bank Trust Company Americas, in its capacity as indenture trustee (the
“Indenture Trustee”) and not in its individual capacity. 

               Each
party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Issuer’s 5.34435% Class A-1
Receivable-Backed Notes (the “Class A-1 Notes”), 5.19% Class A-2
Receivable-Backed Notes (the “Class A-2 Notes”), 5.07% Class A-3
Receivable-Backed Notes (the “Class A-3 Notes”), 5.05% Class A-4
Receivable-Backed Notes (the “Class A-4 Notes”), 5.24% Class B
Receivable-Backed Notes (the “Class B Notes”), 5.29% Class C Receivable-Backed
Notes (the “Class C Notes”) and 5.46% Class D Receivable-Backed Notes (the
“Class D Notes” and, together with the Class A-1 Notes, Class A-2 Notes, Class
A-3 Notes, Class A-4 Notes, Class B Notes and Class C Notes, the “Notes”): 

GRANTING CLAUSE

               The
Issuer hereby Grants, transfers, assigns and otherwise conveys to the Indenture
Trustee on the Closing Date, on behalf of and for the benefit of the Holders of
the Notes, without recourse, all of the Issuer’s right, title and interest, now
existing or hereafter arising or acquired, in and to (i) the Contracts and the
related Transferred Assets, (ii) all general intangibles, accounts and tangible
chattel paper relating thereto, (iii) the rights of the Issuer under the
Pooling and Servicing Agreement, (iv) the Collection Account, the Reserve
Account and any other security or deposit account maintained by the Issuer with
the Indenture Trustee or any Qualified Institution, including, without limitation,
all cash and cash equivalents, investment property, Financial Assets, Security
Entitlements, or other Eligible Investments and all other securities and other
assets now or hereafter deposited in or credited to any such account, and all
income from the investment of the funds in such accounts, together with any
successor or replacement accounts, (v) all Security Entitlements of the Issuer
in any and all of the foregoing, and (vi) 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, without
limitation, all proceeds of the conversion of any of the foregoing, voluntary
or involuntary, into cash or other property, all cash proceeds, accounts,
accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any and
every kind and other forms of obligations and receivables, instruments and
other property which at any time constitute all or part of or are included in
the proceeds of any and all proceeds of the foregoing (collectively, the
“Collateral”). 

               The
foregoing Grant is made in trust to secure the payment of principal of and
interest on, and any other amounts owing in respect of, the Notes, equally and
ratably without prejudice, priority or distinction and all other sums owing by
the Issuer hereunder or under any other Transaction Document, and to secure
compliance with the provisions of this Indenture, and subject to the priorities
of allocations as to interest and principal payments, all as provided in this
Indenture and the Pooling and Servicing Agreement. This Indenture shall be
deemed to be and hereby is a security agreement within the meaning of the UCC. 

               The
Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes,
acknowledges such Grant, accepts the trust under this Indenture in accordance
with the provisions of this Indenture and agrees to perform its duties required
in this Indenture to the best of its ability to the end that the interests of
the Holders of the Notes may be adequately and effectively protected. 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

          Section
1.01 Definitions. 

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

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

               “Administration
Agreement” means the Administration Agreement, dated as of October 1, 2006,
among the Administrator, the Issuer, the Depositor and the Indenture Trustee. 

               “Aggregate
Principal Amount” shall have the meaning ascribed thereto in the Pooling
and Servicing Agreement. 

               “Administrator”
means CIT Financial USA, Inc., a Delaware corporation, or any successor
Administrator under the Administration Agreement. 

               “Authorized
Officer” means, with respect to the Issuer, (i) the Administrator or (ii)
any officer of the Owner Trustee who is authorized to act for the Owner Trustee
in matters relating to the Issuer and who is identified on the list of
Authorized Officers delivered by the Owner Trustee to the Indenture Trustee on
the Closing Date (as such list may be modified or supplemented from time to
time thereafter) and, so long as the Administration Agreement is in effect, any
Vice President or more senior officer of the Administrator who is authorized to
act for the Administrator in matters relating to the Issuer and to be acted
upon by the Administrator pursuant to the Administration Agreement and who is
identified on the list of Authorized Officers delivered by the Administrator to
the Indenture Trustee on the Closing Date (as such list may be modified or
supplemented from time to time thereafter). 

               “Book
Entry Notes” means a beneficial interest in the Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.09. 

               “Business
Day” means any day other than a Saturday, Sunday or other day on which
banking institutions in the States of Arizona, New Jersey, New York or Texas
are authorized or obligated by law, executive order or governmental decree to
be closed. 

               “Certificate
Registrar” shall have the meaning ascribed thereto in the Trust Agreement. 

2

               “CFUSA”
means CIT Financial USA, Inc., a Delaware corporation. 

               “Class”
means all Notes whose form is identical except for variation in denomination,
principal amount or owner. 

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

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

               “Collateral”
means the Collateral as defined in the Granting Clause hereof. 

               “Corporate
Trust Office” means the principal office of the Indenture Trustee at which
at any particular time its corporate trust business shall be administered which
office as of the date of the execution of this Indenture is located at: 60 Wall
Street, 26th Fl, MS NYC 60-2606, New York, New York 10005, Attention: Corporate
Trust & Agency Services – Structured Finance Services; or at such other
address as the Indenture Trustee may designate from time to time by notice to
the Noteholders and the Issuer, or the principal corporate trust office of any
successor Indenture Trustee (the address of which the successor Indenture
Trustee will notify the Noteholders and the Issuer). 

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

               “Definitive
Notes” means any Class of Notes issued in definitive, fully registered,
form. 

               “Depositor”
means CIT Funding Company, LLC, a Delaware limited liability company. 

               “DTC”
means The Depository Trust Company, and its successors. 

               “Eligible
Deposit Account” means either (a) a segregated account with a Qualified
Institution, or (b) a segregated trust account with the corporate trust
department of a depository institution organized under the laws of the United
States of America 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 account, so long as any of the securities of such
depository institution shall have a credit rating from each Rating Agency in
one of its short-term credit rating categories which signifies investment
grade. 

               “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended. 

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

3

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

               “Financial
Asset” has the meaning specified in Section 8-102(a)(9) of the UCC. 

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

               “Holder”
means, with respect to a Book-Entry Note, the Person who is the owner of such
Book-Entry Note, as reflected on the books of the Clearing Agency, or on the
books of a Person maintaining an account with such Clearing Agency (directly as
a Clearing Agency participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency) and with respect to a
Definitive Note the Person in whose name a Note is registered on the Note
Register. 

               “Indenture
Trustee” means Deutsche Bank Trust Company Americas, as Indenture Trustee
under this Indenture, or any successor Indenture Trustee under this Indenture. 

               “Indenture
Trustee Documents” shall have the meaning ascribed to such term in Section
6.13(a) hereof. 

               “Independent”
means, when used with respect to any specified Person, that the Person (i) is
in fact independent of the Issuer, any other obligor upon the Notes, the
Depositor, CFUSA and any of their respective Affiliates, (ii) does not have any
direct financial interest or any material indirect financial interest in the
Issuer, any such other obligor, CFUSA or any of their respective Affiliates,
and (iii) is not connected with the Issuer, any such other obligor, CFUSA or
any Affiliate of any of the foregoing Persons as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions. 

               “Independent
Certificate” means a certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 11.01, made by an Independent
appraiser or other expert appointed by an Issuer Order 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. 

4

               “Interest
Rate” means, as the context may require, the Class A-1 Interest Rate, the Class
A-2 Interest Rate, the Class A-3 Interest Rate, the Class A-4 Interest Rate,
the Class B Interest Rate, the Class C Interest Rate, the Class D Interest Rate
or any of them, in each case as defined in the Pooling and Servicing Agreement. 

               “Issuer”
means CIT Equipment Collateral 2006-VT2, a Delaware statutory owner trust. 

               “Issuer
Documents” shall have the meaning ascribed to such term in Section 3.17(a)
hereof. 

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

               “Majority
in Interest” has the same meaning given to the term “Required Holders” in
the Pooling and Servicing Agreement. 

               “Note
Depository Agreement” means the agreement dated as of the Closing Date,
among the Issuer, the Administrator, the Indenture Trustee and DTC, as the
initial Clearing Agency, relating to the Notes. 

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

               “Noteholder”
means, with respect to a Book-Entry Note, the Person who is the owner of such
Book-Entry Note, as reflected on the books of the Clearing Agency, or on the
books of a Person maintaining an account with such Clearing Agency (directly as
a Clearing Agency participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency) and with respect to a
Definitive Note the Person in whose name a Note is registered on the Note
Register. 

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

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

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

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

5

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

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

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

provided,
however, that in determining whether the Holders of the requisite Outstanding
Amount have given any request, demand, authorization, direction, notice,
consent or waiver hereunder or under any other Transaction Document, Notes
owned by the Issuer, any other obligor upon the Notes, the Depositor, CFUSA or
any of their respective Affiliates 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 knows to be so owned shall be so disregarded. Notes so owned
that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s
right so to act with respect to such Notes and that the pledgee is not the
Issuer, any other obligor upon the Notes, the Depositor, CFUSA or any of their
respective Affiliates. 

               “Outstanding
Amount” means the Aggregate Principal Amount of all Notes of one Class or
of all Classes, as the case may be, Outstanding at the date of determination. 

               “Owner
Trustee” means The Bank of New York (Delaware), not in its individual
capacity but solely as Owner Trustee under the Trust Agreement, or any
successor trustee under the Trust Agreement. 

               “Ownership
Interest” mean, with respect to any Note, any ownership or security
interest in such Note, including any interest in such Notes as the Holder
thereof and any other interest therein, whether direct or indirect, legal or
beneficial. 

               “Paying
Agent” means the Indenture Trustee or any other Person that meets the
eligibility standards for the Indenture Trustee specified in Section 6.11 and
is authorized by the Issuer to make the distributions in accordance with the
terms of the Pooling and Servicing Agreement. 

               “Payment
Date” means the twentieth (20th) day (or if any such date is not a Business
Day, then on the next succeeding Business Day) of each calendar month
commencing December 20, 2006. 

               “Pooling
and Servicing Agreement” means the Pooling and Servicing Agreement, dated
as of the date hereof, among the Issuer, the Depositor, CFUSA and the Servicer.

6

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

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

               “Record
Date” means, with respect to any Payment Date, the Business Day immediately
preceding such Payment Date; provided, however, that with respect to any
Definitive Note the Record Date shall be the last Business Day of the month
preceding the month in which such Payment Date occurs. 

               “Redemption
Date” means, in the case of a redemption of the Notes pursuant to Section
10.01(a) or a payment to Noteholders pursuant to Section 10.01(b), the Payment
Date specified by the Servicer or the Issuer pursuant to Section 10.01(a) or
10.01(b), as the case may be. 

               “Redemption
Date Amount” means (i) in the case of a redemption of the Notes pursuant to
Section 10.01(a), an amount equal to the unpaid principal amount of the Notes
redeemed plus accrued and unpaid interest thereon at the applicable Interest
Rate for each Class of Notes being so redeemed to but excluding the Redemption
Date, or (ii) in the case of a payment made to Noteholders pursuant to Section
10.01(b), the amount on deposit in the Collection Account, but not in excess of
the amount specified in clause (i) above. 

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

               “Responsible
Officer” means, with respect to the Indenture Trustee, any officer within
the Corporate Trust Office (or any successor group of the Indenture Trustee),
including any Vice President, or other officer or assistant officer of the
Indenture Trustee customarily performing functions similar to those performed
by the people who at such time shall be officers, respectively, or to whom any
corporate trust matter is referred at the Corporate Trust Office of the
Indenture Trustee because of his knowledge of and familiarity with the
particular subject and, in each case, having direct responsibility for the
administration of the Indenture. 

               “Securities
Act” shall mean the Securities Act of 1933, as amended. 

               “Securities
Intermediary” has the meaning specified in Section 8-102(a)(14) of the UCC.

               “Security
Entitlement” has the meaning specified in Section 8-102(a)(17) of the UCC. 

               “State”
means any one of the 50 states of the United States of America, or the District
of Columbia or any of its territories.  

7

               “Termination
Date” means the date on which the Indenture Trustee shall have received
payment and performance of all amounts and obligations which the Issuer may owe
to or on behalf of the Indenture Trustee for the benefit of the Noteholders
under this Indenture or the Notes. 

               “Transfer”
means any direct or indirect transfer or sale of any Ownership Interest in a
Note. 

               “Transferred
Assets” shall have the meaning ascribed thereto in the Pooling and Servicing
Agreement. 

               “Transferee”
means any Person who is acquiring by Transfer any Ownership Interest in a Note.

               “Trust
Agreement” means the Amended and Restated Trust Agreement, dated as of
October 1, 2006, between the Depositor and the Owner Trustee. 

               “Trust
Certificate” means the Equity Certificate of the Issuer substantially in
the form of Exhibit B to the Trust Agreement. 

               “Trust
Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as amended.  

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

               (b)
Except as otherwise specified herein or as the context may otherwise require,
capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in the Pooling and Servicing Agreement. 

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

               “Commission”
means the Securities and Exchange Commission. 

               “indenture
securities” means the Notes. 

               “indenture
security holder” means a Noteholder. 

               “indenture
to be qualified” means this Indenture. 

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

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

8

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

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

	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
                      (B)
  “or” is not exclusive; 

  
	
   

  	
   

  
	
   

  	
                      (C)
  “including” means including without limitation; 

  
	
   

  	
   

  
	
   

  	
                      (D)
  words in the singular include the plural and words in the plural include the
  singular and references to any gender shall mean and include each other
  gender; 

  
	
   

  	
   

  
	
   

  	
                      (E)
  any agreement, instrument or statute defined or referred to herein or in any
  instrument or certificate delivered in connection herewith means such
  agreement, instrument or statute as from time to time amended, amended and
  restated, modified or supplemented and includes (in the case of agreements or
  instruments) references to all attachments thereto and instruments
  incorporated therein; references to a Person are also to its permitted
  successors and assigns; and 

  
	
   

  	
   

  
	
   

  	
                      (F)
  the words “hereof,” “herein” and “hereunder” and words of similar import when
  used in this Indenture shall refer to this Indenture as a whole and not to
  any particular provision of this Indenture; Section, subsection and Schedule
  references contained in this Indenture are references to Sections,
  subsections and Schedules in or to this Indenture unless otherwise specified.
  

  

ARTICLE TWO

THE NOTES

          Section
2.01 Form. The Notes, in each case together with the Indenture Trustee’s
certificate of authentication, shall be in substantially the forms set forth as
Exhibits to this Indenture with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith,
be determined by the officers executing such Notes, as evidenced by their
execution of the Notes. Any portion of the text of any Note may be set forth on
the reverse thereof, with an appropriate reference thereto on the face of the
Note. 

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

9

          Section
2.02 Execution, Authentication and Delivery. The Notes shall be executed
on behalf of the Issuer by any of its Authorized Officers. The signature of any
such Authorized Officer on the Notes may be manual or facsimile. Notes bearing
the manual or facsimile signature of individuals who were at any time
Authorized Officers of the Issuer shall bind the Issuer, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Notes or did not hold such offices at the
date of such Notes. 

                    The
Indenture Trustee shall, upon receipt of an Issuer Order, authenticate and
deliver for original issue (i) Class A-1 Notes in an Aggregate Principal Amount
of $258,000,000, (ii) Class A-2 Notes in an Aggregate Principal Amount of
$144,000,000, (iii) Class A-3 Notes in an Aggregate Principal Amount of
$180,000,000, (iv) Class A-4 Notes in an Aggregate Principal Amount of
$100,524,000, (v) Class B Notes in an Aggregate Principal Amount of
$16,689,000, (vi) Class C Notes in an Aggregate Principal Amount of
$20,397,000, and (vii) Class D Notes in an Aggregate Principal Amount of
$22,264,116. The Aggregate Principal Amount of such Classes of Notes Outstanding
at any time may not exceed such respective amounts, except as otherwise
provided in Section 2.05. 

                    The
Notes shall be issuable as registered Notes in the minimum denomination of
$1,000 and in integral multiples of $1.00 in excess thereof. 

                    No
Note shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose, unless there appears on such Note a certificate of
authentication substantially in the form provided for herein by the Indenture
Trustee by the manual signature of one of its authorized signatories, and such
certificate upon any Note shall be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered hereunder. 

          Section
2.03 Temporary Notes. Pending the preparation of Book-Entry Notes or
Definitive Notes, the Issuer may execute, and upon receipt of an Issuer Order
the Indenture Trustee shall authenticate and deliver, temporary Notes that are
printed, lithographed, typewritten 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 Book-Entry Notes or
Definitive Notes to be prepared without unreasonable delay. After the
preparation of Book-Entry Notes or Definitive Notes, the temporary Notes shall
be exchangeable for Book-Entry Notes or Definitive Notes upon surrender of the
temporary Notes at the office or agency of the Issuer to be maintained as
provided in Section 3.02, without charge to the Holder. Upon surrender for
cancellation of any one or more Temporary Notes, the Issuer shall execute and,
upon receipt of an Issuer Order, the Indenture Trustee shall authenticate and
deliver in exchange therefor a like tenor and principal amount of Book-Entry
Notes or 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 Book-Entry Notes or Definitive Notes. 

10

          Section
2.04 Registration; Registration of Transfer and Exchange. 

               (a)
The Issuer shall cause to be kept a register (the “Note Register”) in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Notes and the registration of transfers of
Notes. The Indenture Trustee shall be “Note Registrar” for the purpose of
registering Notes and transfers of Notes as herein provided. Upon any
resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties
of Note Registrar. 

               If
a Person other than the Indenture Trustee is appointed by the Issuer as Note
Registrar, the Issuer will give the Indenture Trustee prompt written notice of
the appointment of such Note Registrar and of the location, and any change in
the location, of the Note Register, and the Indenture Trustee shall have the
right to inspect the Note Register at all reasonable times and to obtain copies
thereof, and the Indenture Trustee shall have the right to rely upon a
certificate executed on behalf of the Note Registrar by an Executive Officer
thereof as to the names and addresses of the Holders of the Notes and the
principal amounts and number of such Notes. 

               (b)
Upon surrender for registration of transfer of any Note at the office or agency
of the Issuer to be maintained as provided in Section 3.02, the Issuer shall
execute, and, upon receipt of an Issuer Order, the Indenture Trustee shall
authenticate and the Noteholder shall obtain from the Indenture Trustee, in the
name of the designated transferee or transferees (and, if applicable, such
Noteholder), one or more new Notes of the same Class in any authorized
denominations, of a like Aggregate Principal Amount. 

               At the option
of the Holder, Notes may be exchanged for other Notes of the same Class in any
authorized denominations, of a like Aggregate Principal Amount, upon surrender
of the Notes to be exchanged at the office or agency of the Issuer to be
maintained as provided under Section 3.02. Whenever any Notes are so
surrendered for exchange, the Issuer shall execute, and upon receipt of an
Issuer Order, the Indenture Trustee shall authenticate and the Noteholder shall
obtain from the Indenture Trustee, the Notes which the Noteholder making the exchange
is entitled to receive. 

               All
Notes issued in accordance with this Section 2.04(b) upon any registration of
transfer or exchange of Notes shall be the valid obligations of the Issuer,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Notes surrendered upon such registration of transfer or
exchange. 

               Every
Note presented or surrendered for registration of transfer or exchange shall be
duly endorsed by, or be accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder thereof or
such Holder’s attorney duly authorized in writing, with such signature
guaranteed by a commercial bank or trust company located, or having a correspondent
located in the city in which the Corporate Trust Office is located, or by a
member firm of a national securities exchange, and such other documents as the
Indenture Trustee may require. 

               No
service charge shall be made to a Holder for any registration of transfer or
exchange of Notes, but the Issuer or the Indenture Trustee may require payment
of a sum

11

sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Notes, other than exchanges
pursuant to Section 2.03 not involving any transfer. 

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

               Neither
the Indenture Trustee nor the Note Registrar shall have any responsibility to
monitor or restrict the transfer of beneficial ownership in any Note an
interest in which is transferable through the facilities of the Clearing
Agency. By purchasing a Note, the initial holder and any transferee thereof
will be deemed to represent that the acquisition and holding of such Note will
not constitute a prohibited transaction in violation of Section 406 of ERISA or
Section 4975 of the Code which is not covered by (i) prohibited transaction
class exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23,
(ii) the statutory exemption that may be available under Section 408(b)(17) of
ERISA and Section 4975(d)(20) of the Code to a party in interest that is a
service provider to a plan investing in the Notes for adequate consideration
(as determined in good faith by the plan fiduciary pursuant to regulations
that, as of the date of this Indenture, are to be promulgated by the U.S.
Department of Labor), provided such service provider is not (A) the fiduciary
with respect to the plan’s assets used to acquire the notes or an affiliate of
such fiduciary or (B) an affiliate of the employer sponsoring the plan or (iii)
some other applicable class or individual exemption (or, in the case of a
governmental or church plan, any similar federal, state or local law, does not
cause a non-exempt violation of any substantially similar law). 

          Section
2.05 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated
Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, and
(ii) in the case of any Note that has been destroyed, lost or stolen, there is
delivered to the Indenture Trustee such security or indemnity as may be
required by them to hold the Issuer and the Indenture Trustee harmless, then,
in the absence of notice to the Issuer, the Note Registrar or the Indenture
Trustee that such Note has been acquired by a bona fide purchaser, the Issuer
shall execute and upon the receipt of an Issuer Order, the Indenture Trustee
shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note of the same
Class; provided, however, that if any such destroyed, lost or stolen Note, but
not a mutilated Note, shall have become or within seven days shall be due and
payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when
so due or payable or upon the Redemption Date without surrender thereof. If,
after the delivery of such replacement Note or payment of a destroyed, lost or
stolen Note pursuant to the proviso to the preceding sentence, a bona fide
purchaser of the original Note in lieu of which such replacement Note was
issued presents for payment such original Note, the Issuer and the 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 

12

provided
therefor to the extent of any loss, damage, cost or expense incurred by the
Issuer or the Indenture Trustee in connection therewith. 

               Upon
the issuance of any replacement Note under this Section, the Issuer or the
Indenture Trustee may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee or the Note Registrar) connected therewith. 

               Every
replacement Note issued pursuant to this Section in replacement of any
mutilated, destroyed, lost or stolen Note shall (subject to the final sentence
of the initial paragraph of this Section 2.05 and the definition of
“Predecessor Note” herein) constitute an original additional contractual
obligation of the Issuer, whether or not the mutilated, destroyed, lost or
stolen Note shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and
all other Notes duly issued hereunder. 

               The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes. 

          Section
2.06 Persons Deemed Owner. Prior to due presentment for registration of
transfer of any Note, the Issuer, the Indenture Trustee, and any of their
respective agents 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 is overdue, and none of
the Issuer, the Indenture Trustee nor any of their respective agents shall be
affected by notice to the contrary. 

          Section
2.07 Payment of Principal and Interest; Defaulted Interest. 

               (a)
Each Class of Notes shall accrue interest at the related Interest Rate, and
such interest shall be payable on each Payment Date in accordance with the
terms of the Pooling and Servicing Agreement, subject to Section 3.01. Any
installment of interest or principal, if any, payable on any Note which is
punctually paid or duly provided for by the Issuer on the applicable Payment
Date shall be paid to the Person in whose name such Note is registered on the
Record Date, by check mailed first-class, postage prepaid to such Person’s
address as it appears on the Note Register on such Record Date; provided,
however, that, unless and until Definitive Notes have been issued pursuant to
Section 2.11, with respect to Notes registered on the applicable Record Date in
the name of the nominee of the Clearing Agency (initially, Cede & Co.), payment
shall be made by wire transfer in immediately available funds to the account
designated by such nominee. 

               (b)
The principal of each Note shall be payable on each Payment Date in accordance
with the terms of the Pooling and Servicing Agreement. Notwithstanding the
foregoing, the entire unpaid principal amount of the Notes shall be due and
payable, if not previously paid on the Payment Date, following the date on
which an Event of Default shall have 

13

occurred and
be continuing in accordance with the terms of the Pooling and Servicing
Agreement, unless the Required Holders have waived such Event of Default in the
manner provided in Section 5.02. All principal payments on each Class of Notes
shall be made pro rata to the Noteholders of such Class entitled thereto. The
Indenture Trustee shall, to the extent practicable, notify the Person in whose
name a Note is registered at the close of business on the Record Date preceding
the Payment Date on which the Issuer expects that the final installment of
principal of and interest on such Note will be paid. Such notice shall be
mailed within five Business Days of receipt of notice of termination of the
Trust pursuant to Section 9.01(c) of the Trust Agreement and shall specify that
such final installment will be payable only upon presentation and surrender of
such Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section
10.02. 

               (c)
If the Issuer defaults in a payment of interest on the Notes, the Issuer shall
pay defaulted interest at the applicable Interest Rate to the extent lawful.
The Issuer may pay such defaulted interest to the Persons who are Noteholders
on any Payment Date in the manner and to the extent provided in the Pooling and
Servicing Agreement. 

               (d)
All payments to be made by the Issuer under this Indenture shall be made only
from the income and proceeds from the Collateral and only to the extent that
the Issuer shall have sufficient income or proceeds from the Collateral to
enable the Issuer to make payments in accordance with the terms hereof. The
Indenture Trustee is not personally liable for any amounts payable under this
Indenture, except as expressly provided herein. 

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

          Section
2.09 Book-Entry Notes. The Notes, upon original issuance, will be issued
in the form of a typewritten Note or Notes representing the Book-Entry Notes to
be delivered to DTC, 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
Noteholder of such Notes will receive a Definitive Note representing such
Noteholder’s interest in such Note, except as provided in Section 2.11. Unless
and until Definitive Notes have been issued to Noteholders pursuant to Section
2.11: 

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

14

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

               (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 Noteholders shall be exercised only through the Clearing Agency
and shall be limited to those established by law and agreements between such
Noteholders and the Clearing Agency and/or the Clearing Agency Participants.
Pursuant to the Note Depository Agreement, unless and until Definitive Notes
are issued pursuant to Section 2.11, the 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 Noteholders evidencing a specified percentage of the
Outstanding Amount, the Clearing Agency shall be deemed to represent such
percentage only to the extent that it has received instructions to such effect
from Noteholders 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 in a form
reasonably acceptable to the Indenture Trustee. 

          Section
2.10 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 Noteholders pursuant to
Section 2.11, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Noteholders to the Clearing
Agency, and shall have no obligation to the Noteholders. 

          Section
2.11 Definitive Notes. With respect to the Notes, if (i)(A) the Administrator
advises the Indenture Trustee in writing that the Clearing Agency is no longer
willing or able to properly discharge its responsibilities as described in the
Note Depository Agreement, and (B) the Indenture Trustee or the Administrator
is unable to locate a qualified successor, (ii) the Administrator at its option
advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency, or (iii) after the occurrence,
and during the continuance, of an Event of Default, Holders of Notes
representing not less than 66 2/3% of the Outstanding Amount of such Class of
Notes advise the Indenture Trustee and the Clearing Agency through the Clearing
Agency Participants in writing that the continuation of a book-entry system
through the Clearing Agency is no longer in the best interests of the related
Noteholders, then the Indenture Trustee shall notify all Noteholders of the
related Class or Classes of Notes, through the Clearing Agency, of the
occurrence of any such event and of the availability of Definitive Notes of the
related Class of Notes to Noteholders requesting the same. Upon surrender to
the Indenture Trustee of the Note or Notes representing the Book-Entry Notes by
the Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and, upon receipt of an Issuer Order, the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the
Clearing Agency. None of the Issuer, the Owner Trustee, 

15

the Note
Registrar or the Indenture Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Notes of a
Class, the Indenture Trustee shall recognize the holders of the Definitive
Notes as Noteholders hereunder. 

               The
Indenture Trustee shall not be liable if the Indenture Trustee or the
Administrator is unable to locate a qualified successor Clearing Agency. Definitive
Notes shall be prepared at the expense of the Servicer and 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
2.12 Release of Collateral. The Indenture Trustee shall release property
from the lien of this Indenture only upon receipt of an Issuer Request stating
that all conditions precedent under the Transaction Documents to such release
and Section 11.01 hereof have been satisfied, accompanied by an Officer’s
Certificate. 

          Section
2.13 Tax Treatment. The Issuer and the purchasers of the Notes intend,
and will take all actions consistent with the intention, that the Notes be
treated as indebtedness which is solely secured by the assets of the Trust for
all federal, state and local income and franchise tax purposes and that,
pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii) as in effect for
periods after January 1, 1997, the Trust be disregarded as a separate entity
from the Depositor for federal income tax purposes. The Issuer, by entering
into this Indenture, and each Noteholder, by its acceptance of its Note agrees
to treat the Notes for federal, state and local income, single business and
franchise tax purposes as indebtedness. 

ARTICLE THREE

COVENANTS; REPRESENTATIONS AND WARRANTIES

          Section
3.01 Payment of Principal and Interest. The Issuer will duly and
punctually pay the principal of and interest, if any, on the Notes in
accordance with the terms of the Notes, this Indenture and the Pooling and
Servicing Agreement. Without limiting the foregoing, subject to Section
8.02(c), the Issuer will cause to be deposited into the Collection Account
amounts allocated pursuant to Section 7.05 of the Pooling and Servicing
Agreement, and cause to be distributed all such amounts on a Payment Date as
deposited therein (i) for the benefit of the Class A-1 Notes, to the Class A-1
Noteholders, (ii) for the benefit of the Class A-2 Notes, to the Class A-2
Noteholders, (iii) for the benefit of the Class A-3 Notes, to the Class A-3
Noteholders, (iv) for the benefit of the Class A-4 Notes, to the Class A-4
Noteholders, (v) for the benefit of the Class B Notes, to the Class B
Noteholders, (vi) for the benefit of the Class C Notes, to the Class C
Noteholders, and (vii) for the benefit of the Class D Notes, to the Class D
Noteholders, in each case as further specified therein. Amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture. 

          Section
3.02 Maintenance of Office or Agency. The Issuer will maintain (or
designate) in New York, New York, an office or agency where Notes may be
surrendered for registration of 

16

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

          Section
3.03 Money for Payments to be Held in Trust. As provided in Section
8.02, all payments of amounts due and payable with respect to any Notes that are
to be made from amounts withdrawn from the Collection Account pursuant to
Section 8.02(d) shall be made on behalf of the Issuer by the Indenture Trustee
or by another Paying Agent (pursuant to the written instructions of the
Servicer), and no amounts so withdrawn from the Collection Account for payments
of Notes shall be paid over to the Issuer, except as provided in the Pooling
and Servicing Agreement. 

               The
Issuer will cause each Paying Agent other than the Indenture Trustee to execute
and deliver to the Indenture Trustee an instrument in which such Paying Agent
shall agree with the Indenture Trustee (and if the Indenture Trustee acts as
Paying Agent, it hereby so agrees), subject to the provisions of this Section,
that such Paying Agent will: 

               (a)
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; 

               (b)
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; 

               (c)
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; 

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

               (e)
comply with all requirements of the Code with respect to the withholding from
any payments made by it on any Notes of any applicable withholding taxes
imposed thereon and with respect to any applicable reporting requirements in
connection therewith. 

               The
Issuer may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, by Issuer Order direct
any Paying Agent to pay to the Indenture Trustee all sums held in trust by such
Paying Agent, such sums to be held by the Indenture Trustee upon the same
trusts as those upon which the sums were held by such 

17

Paying Agent;
and upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money. 

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

          Section
3.04 Existence. The Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other State or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Collateral. 

          Section
3.05 Protection of Collateral. (a) The Issuer intends the security
interest granted pursuant to this Indenture in favor of the Indenture Trustee
on behalf of the Noteholders to be prior to all other liens (other than
Permitted Liens) in respect of the Collateral, and the Issuer shall take all
actions necessary to obtain and maintain, for the benefit of the Indenture
Trustee on behalf of the Noteholders, a first lien on and a first priority,
perfected security interest in the Collateral (subject to Permitted Liens). The
Issuer will from time to time execute, deliver and file (or by written notice
authorize the filing of) all such supplements and amendments hereto and all
such financing statements, continuation statements, instruments of further
assurance and other instruments, all as prepared by the Servicer and delivered
to the Issuer, and will take such other action necessary or advisable to: 

	
   

  	
   

  
	
   

  	
                 (i)
  Grant more effectively the lien or the security interest created by this Indenture
  in all or any portion of the Collateral;

  

18

	
   

  	
   

  
	
   

  	
                 (ii)
  maintain or preserve the lien and security interest (and the priority
  thereof) created by this Indenture, subject to Permitted Liens, or carry out
  more effectively the purposes hereof; 

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
                 (iv)
  enforce any of the Collateral; 

  
	
   

  	
   

  
	
   

  	
                 (v)
  preserve and defend title to the Collateral and the rights of the Indenture
  Trustee and the Noteholders in such Collateral against the claims of all
  persons and parties, subject to Permitted Liens; and 

  
	
   

  	
   

  
	
   

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

  

               (b)
The Issuer hereby designates the Indenture Trustee its agent and attorney-
in-fact to execute all financing statements, continuation statements or other
instruments prepared by and at the expense of the Servicer required to be
executed pursuant to this Section. 

          Section
3.06 Performance of Obligations; Servicing of Contracts. 

               (a)
The Issuer will not take any action and will use its reasonable best efforts
not to permit any action to be taken by others that would release any Person
from any such Person’s material covenants or obligations under any instrument
or agreement included in the Collateral or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in the Transaction Documents or such other instrument or
agreement. 

               (b)
The Issuer may contract with other Persons to assist it in performing its
duties and obligations under this Indenture, and any performance of such duties
by a Person identified to the Indenture Trustee in an Officer’s Certificate
shall be deemed to be action taken by the Issuer. The Indenture Trustee and the
Owner Trustee shall not be responsible for the action or inaction of such
Persons, the Servicer or the Administrator. Initially, the Issuer has
contracted with the Servicer and the Administrator to assist the Issuer in
performing its duties under this Indenture. 

               (c)
The Issuer will punctually perform and observe all of its obligations and
agreements contained in this Indenture, the other Transaction Documents to
which it is a party and in the instruments and agreements included in the
Collateral, including but not limited to filing or causing to be filed all UCC
financing statements and continuation statements required to be filed by the
terms of this Indenture and the Pooling and Servicing Agreement in accordance
with and within the time periods provided for herein and therein. Except as
otherwise expressly provided therein, the Issuer shall not waive, amend,
modify, supplement or terminate any Transaction Document or any provision
thereof without the consent of the Indenture Trustee, acting, if required by
the terms of the Transaction Documents, at the direction of the Required
Holders. 

19

               
(d) If the Issuer shall have knowledge of the occurrence of a Servicer Default,
the Issuer shall promptly notify in writing the Indenture Trustee and each
Rating Agency thereof. Upon any termination of the Servicer’s rights and powers
pursuant to the Pooling and Servicing Agreement, the Issuer shall promptly
notify the Indenture Trustee. As soon as a Successor Servicer is appointed, the
Issuer shall notify the Indenture Trustee and the Rating Agencies of such
appointment (to the extent such party has not already been notified pursuant to
the Pooling and Servicing Agreement), specifying in such notice the name and
address of such Successor Servicer. 

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

               (f)
The Issuer shall maintain its computer systems so that, from and after the time
of the Grant under this Indenture of the Contracts and related Transferred
Assets referenced in such Grant, the Issuer’s master computer records shall be
coded to reflect that such Contracts and related Transferred Assets are pledged
by the Issuer to the Indenture Trustee for the benefit of the Holders of the
Notes. The Issuer shall deliver to the Indenture Trustee a computer file,
microfiche list, printed list or electronic list containing a true and complete
list of all Contracts subject to this Indenture. Such file or list shall be
marked as Schedule A to this Indenture, delivered to the Indenture Trustee as
confidential and proprietary, and is hereby incorporated into and made a part
of this Indenture. The Issuer further agrees not to alter the code referenced
in the first sentence of this paragraph during the term of this Indenture.  

          Section
3.07 Negative Covenants. Until the Termination Date, the Issuer shall
not: 

               (a)
except as expressly permitted by the Transaction Documents, sell, transfer,
exchange or otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Collateral, unless directed to do so by the
Indenture Trustee at the request of the Required Holders; 

               (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 applicable state law) or assert any claim
against any present or former Noteholder by reason of the payment of the taxes
levied or assessed upon any part of the Collateral; or 

               (c)
(A) permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien created by this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released
from any covenant; or obligations with respect to the Notes under this
Indenture except as may be expressly permitted hereby, (B) permit any lien,
charge, excise, claim, security interest, mortgage or other encumbrance (other
than the lien of this Indenture) to be created on or extend to or otherwise
arise upon or burden the Collateral or any part thereof or any interest therein
or the proceeds thereof (other than Permitted Liens), (C) permit the lien
created by this Indenture not to constitute a valid first priority (other than
with respect to Permitted Liens) security interest in the Collateral, or (D)
amend, modify or fail to comply with the provisions of the Transaction Documents
without the prior written 

20

consent of the
Indenture Trustee acting at the direction of the Required Holders, except where
the Transaction Documents allow for amendment or modification without the
consent or approval of the Indenture Trustee; or 

               (d)
except as expressly set forth in the Trust Agreement, dissolve or liquidate in
whole or in part. 

          Section
3.08 Issuer May Consolidate, etc., Only on Certain Terms. 

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

	
 

	
 

	
 

	
                    (A)
  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 or any State and shall expressly assume, by an
  indenture supplemental hereto, executed and delivered to the Indenture
  Trustee, in form and substance reasonably satisfactory to the Indenture
  Trustee, the due and punctual payment of the principal of and interest on all
  Notes and the performance or observance of every agreement and covenant of
  this Indenture and each other Transaction Document on the part of the Issuer
  to be performed or observed, all as provided herein; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
                    (D)
  the Issuer shall have received an Opinion of Counsel (which shall not be from
  employees of the Issuer, CFUSA or the Depositor) which shall be delivered to
  and shall be reasonably satisfactory to the Indenture Trustee to the effect
  that such transaction will not have any material adverse tax consequence to
  the Trust, any Noteholder or the Equity Certificateholder; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
                    (F)
  the Issuer shall have delivered to the Indenture Trustee an Officer’s
  Certificate and an Opinion of Counsel (which shall describe the actions taken
  as required by clause (E) above or that no such actions will be taken) each
  stating that such consolidation or merger and such supplemental indenture
  comply with this Article Three and that all conditions precedent herein
  provided for relating to such transaction have been complied with; and 

	
 

	
 

	
 

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

21

               (b)
The Issuer shall not convey or transfer all or substantially all of its
properties or assets, including those included in the Collateral, to any Person
(except as expressly permitted by the Transaction Documents), unless: 

	
 

	
 

	
 

	
                    (A)
  the Person that acquires by conveyance or transfer the properties and assets
  of the Issuer shall (1) be a United States of America citizen or a Person
  organized and existing under the laws of the United States of America or any
  State, (2) expressly assume, by an indenture supplemental hereto, executed
  and delivered to the Indenture Trustee, in form and substance satisfactory to
  the Indenture Trustee, the due and punctual payment of the principal of and
  interest on all Notes and the performance or observance of every agreement
  and covenant of this Indenture and each other Transaction Document on the
  part of the Issuer to be performed or observed, all as provided herein, (3)
  expressly agree by means of such supplemental indenture that all right, title
  and interest so conveyed or transferred shall be subject and subordinate to
  the rights of Holders of the Notes and (4) unless otherwise provided in such
  supplemental indenture, expressly agree to indemnify, defend and hold
  harmless the Issuer and the Indenture Trustee against and from any loss,
  liability or expense arising under or related to this Indenture and the
  Notes; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
                    (D)
  the Issuer shall have received an Opinion of Counsel (which shall not be from
  an employee of the Issuer, CFUSA or the Depositor) which shall be delivered
  to and shall be satisfactory to the Indenture Trustee to the effect that such
  transaction will not have any material adverse tax consequence to the Trust,
  any Noteholder or the Equity Certificateholder; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
                    (F)
  the Issuer shall have delivered to the Indenture Trustee an Officer’s
  Certificate and an Opinion of Counsel (which shall describe the actions taken
  as required by clause (E) above or that no such actions will be taken) each
  stating that such conveyance or transfer and such supplemental indenture
  comply with this Article Three and that all conditions precedent herein
  provided for relating to such transaction have been complied with (including
  any filings required by Exchange Act); and

	
 

	
 

	
 

	
                    (G)
  the Issuer has a net worth, immediately after such conveyance or transfer,
  that is (1) greater than zero and (2) not less than the net worth of the
  Issuer immediately prior to giving effect to such conveyance or transfer. 

22

          Section
3.09 Successor or Transferee. 

               (a)
Upon any consolidation or merger of the Issuer in accordance with Section
3.08(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 same
effect as if such Person has been named as the Issuer herein. 

               (b)
Upon a conveyance or transfer of all or substantially all the assets or
properties of the Issuer in accordance with Section 3.08(b), the Issuer will be
released from every covenant and agreement of this Indenture to be observed or
performed on the part of the Issuer with respect to the Notes immediately upon
the delivery of written notice to the Indenture Trustee stating that the Issuer
is to be so released. 

          Section
3.10 No Other Business. The Issuer shall not engage in any business
other than financing, purchasing, owning, selling and managing the Contracts in
the manner contemplated by this Indenture and the other Transaction Documents
and activities incidental thereto. 

          Section
3.11 No Borrowing. The Issuer shall not issue, incur, assume, guarantee
or otherwise become liable, directly or indirectly, for any Indebtedness except
for (i) the Notes and (ii) any other Indebtedness permitted by or arising under
the other Transaction Documents. The proceeds of the Notes and the Equity
Certificate shall be used exclusively to fund the Issuer’s purchase of the
Contracts and the other assets specified in the Pooling and Servicing
Agreement, to fund the Reserve Account and to pay the transactional expenses of
the Issuer. 

          Section
3.12 Notice of Events of Default. The Issuer agrees to give the
Indenture Trustee and each Rating Agency prompt written notice of each Event of
Default hereunder and of a Servicer Default under the Pooling and Servicing
Agreement, in each case, promptly upon obtaining knowledge thereof. 

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

          Section
3.14 Compliance with Laws. The Issuer shall comply with the requirements
of all applicable laws, the non-compliance with which would, individually or in
the aggregate, materially and adversely affect the ability of the Issuer to
perform its obligations under the Notes, this Indenture or any other Transaction
Document to which it is a party. 

          Section
3.15 Amendments of Trust Agreement. The Issuer shall not agree to any
amendment to Section 11.01 of the Trust Agreement to eliminate the requirements
thereunder that the Indenture Trustee and the Holders of the Notes consent to
amendments thereto as provided therein. 

          Section
3.16 Removal of Administrator. So long as any Notes are issued and
outstanding, the Issuer shall not remove the Administrator without cause unless
the Rating Agency Condition shall have been satisfied in connection with such
removal. 

23

          Section
3.17 Representations and Warranties of Issuer. The Issuer represents and
warrants as follows: 

               (a)
Power and Authority. It has full power, authority and legal right to
execute, deliver and perform its obligations as Issuer under this Indenture,
the Pooling and Servicing Agreement, the Notes and the Administration Agreement
(the foregoing documents, the “Issuer Documents”). 

               (b)
Due Authorization; Binding Obligation. The execution and delivery of the
Issuer Documents and the consummation of the transactions provided for therein
have been duly authorized by all necessary action on its part. The Issuer
Documents constitute the legal, valid and binding obligation of the Issuer
enforceable against the Issuer in accordance with their terms, except as
enforcement of such terms may be limited by bankruptcy, insolvency or similar
laws affecting the enforcement of creditors’ rights generally, by any
applicable law imposing limitations upon, or otherwise affecting, the
availability or enforcement of rights to indemnification thereunder and by the
availability of equitable remedies. 

               (c)
No Conflict. The execution and delivery of the Issuer Documents, the
performance of the transactions contemplated thereby and the fulfillment of the
terms thereof will not conflict with, result in any breach of any of the
materials terms and provisions of, or constitute (with or without notice or lapse
of time or both) a default under, any indenture, contract, agreement, mortgage,
deed of trust, or other instrument to which the Issuer is a party or by which
it or any of its property is bound. 

               (d)
No Violation. The execution and delivery of the Issuer Documents, the
performance of the transactions contemplated thereby and the fulfillment of the
terms thereof will not conflict with or violate, in any material respect, any
Requirements of Law applicable to the Issuer. 

               (e)
All Consents Required. All approvals, authorizations, consents, orders
or other actions of any Person or any Governmental Authority required in
connection with the execution and delivery of the Issuer Documents, the
performance of the transactions contemplated thereby and the fulfillment of the
terms thereof have been obtained. 

               (f)
State of Organization. The Issuer is organized under the laws of the
State of Delaware. The Issuer agrees that it will not change its jurisdiction
of organization without (i) at least thirty (30) days prior written notice to
CFUSA, the Servicer, the Indenture Trustee and the Rating Agencies, and (ii)
having taken such action as is necessary to preserve and protect the Indenture
Trustee’s interest in the Collateral. 

ARTICLE FOUR

SATISFACTION AND DISCHARGE

               Section
4.01 Satisfaction and Discharge of Indenture. This Indenture shall cease
to be of further effect with respect to the Notes except as to (i) rights of
registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive
payments of principal thereof and interest thereon, (iv) Sections 3.01, 3.03,
3.04, 3.05, 

24

3.06, 3.07,
3.09, 3.10, 3.11, 3.12, 3.14 and 3.15, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Article Six and the obligations of the Indenture
Trustee under Section 4.02) and (vi) the rights of Noteholders as beneficiaries
hereof with respect to the property so deposited with the Indenture Trustee
payable to all or any of them. The Indenture Trustee, on demand of and at the
expense of the Issuer, shall execute proper instruments provided to it
acknowledging satisfaction and discharge of this Indenture with respect to the
Notes, when: 

               (a)
either 

	
 

	
 

	
 

	
                    (i)
  all Notes theretofore authenticated and delivered (other than (i) Notes that
  have been destroyed, lost or stolen and that have been replaced or paid as
  provided in Section 2.05 and (ii) Notes for whose payment money has
  theretofore been deposited in trust or segregated and held in trust by the
  Issuer and thereafter repaid to the Issuer or discharged from such trust, as
  provided in Section 3.03) have been delivered to the Indenture Trustee for
  cancellation; or 

	
 

	
 

	
 

	
                    (ii)
  (A) all Notes not theretofore delivered to the Indenture Trustee for
  cancellation (i) have become due and payable, or (ii) will become due and
  payable at the applicable Maturity Date within one year, or (iii) are to be
  called for redemption within one year under arrangements satisfactory to the
  Indenture Trustee for the giving of notice of redemption by the Indenture
  Trustee in the name, and at the expense of the Issuer, and (B) 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 in an Eligible Deposit Account (which shall be the
  Collection Account) for such purpose, in an amount sufficient to pay and
  discharge the entire indebtedness on such Notes not theretofore delivered to
  the Indenture Trustee for cancellation when due to the final scheduled
  Payment Date or Redemption Date (if Notes shall have been called for
  redemption pursuant to Section 10.01(a)), as the case may be; 

               (b)
the Issuer has paid or performed or caused to be paid or performed all amounts
and obligations which the Issuer may owe to or on behalf of the Indenture
Trustee for the benefit of the Noteholders under this Indenture or the Notes;
and has paid or caused to be paid or has made provision for the payment when
due of all amounts owing to the Indenture Trustee for the administration of the
trust, including the disposition of amounts paid by the Issuer pursuant to this
Section 4.01; or 

               (c)
the Issuer has delivered to the Indenture Trustee an Officer’s Certificate and
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 11.01(a) and, subject to Section
11.02, stating that all conditions precedent herein provided for relating to
the satisfaction and discharge of this Indenture have been complied with and
the Rating Agency Condition has been satisfied. 

          Section
4.02 Application of Trust Money. All moneys deposited with the Indenture
Trustee pursuant to Section 4.01 shall be held in trust and applied by it, in
accordance with the 

25

provisions of
the Notes and this Indenture, to the payment, either directly or through any
Paying Agent, as the Indenture Trustee may determine, to the Holders of the
particular Notes for the payment or redemption of which such moneys have been
deposited with the Indenture Trustee, of all sums due and to become due thereon
for principal and interest; but such moneys need not be segregated from other
funds except to the extent required herein or in the Pooling and Servicing
Agreement or required by law. 

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

          Section
4.04 Release of Collateral. The Indenture Trustee shall release property
from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer’s Certificate. 

ARTICLE FIVE

REMEDIES

          Section
5.01 Events of Default. 

               “Events
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)
failure to pay on any Payment Date the full amount of accrued interest on any
Note, which failure continues unremedied for five (5) or more calendar days
after such Payment Date; 

               (b)
failure to pay the then outstanding principal amount of any Note, if any, on
its related Maturity Date; 

               (c)
failure on the part of the Issuer or the Depositor to observe or perform any
covenants or agreements of such entity set forth in the Pooling and Servicing
Agreement or the Indenture, which failure has a material adverse effect on the
Noteholders and which continues unremedied for a period of sixty (60) calendar
days after written notice; 

               (d)
any representation or warranty made by the Issuer or the Depositor in the
Pooling and Servicing Agreement or the Indenture proves to have been incorrect
in any material respect when made and continues to be incorrect in any material
respect for a period of (sixty) 60 calendar days after written notice and as a
result of which the interests of the Noteholders are materially and adversely
affected; provided, however, that an Event of Default shall not be deemed to
occur thereunder if the related Contracts have been repurchased, or substituted
for, 

26

during such
period in accordance with the provisions of the Pooling and Servicing Agreement
and the Purchase and Sale Agreements; 

               (e)
the occurrence of an Insolvency Event relating to the Depositor or the Issuer;
or 

               (f)
the Issuer becomes an “investment company” within the meaning of the Investment
Company Act of 1940, as amended. 

          Section
5.02 Rights Upon Event of Default; Notice. 

               If
an Event of Default referred to in subparagraph (e) of Section 5.01 has
occurred and is continuing, then and in every such case the unpaid principal
amount of the Notes, together with interest accrued but unpaid thereon, and all
other amounts due to the Noteholders under the Indenture, shall immediately and
without further act become due and payable. If any other Event of Default has
occurred and is continuing, the Required Holders by written notice to the
Indenture Trustee may require the Indenture Trustee to, or the Indenture
Trustee may without such notice, declare by written notice to the Issuer (with
a copy to the Depositor and each Rating Agency) that the unpaid principal
amount of the Notes together with interest accrued but unpaid thereon, and all
other amounts due to the Noteholders under the Indenture shall immediately and
without further act become due and payable. 

               At
any time after such declaration of acceleration of maturity has been made, in
the case of any event described in clause (a), (b), (c), (d) or (f) of Section
5.01, and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter provided in this Article Five,
the Required Holders may waive such Event of Default pursuant to a written
notice to the Issuer, Indenture Trustee and the Servicer. In the event a
Responsible Officer of the Indenture Trustee has actual knowledge of an Event
of Default, it shall give written notice thereof to the Depositor, CFUSA, the
Servicer, the Owner Trustee and the Rating Agencies. The Indenture Trustee
shall not be deemed to have notice of an Event of Default unless a Responsible
Officer of the Indenture Trustee shall have received a written notice pursuant
to this Section 5.02 or has actual knowledge of an Event of Default. 

               If
an Insolvency Event relating to the Depositor occurs, pursuant to the Trust
Agreement and the Pooling and Servicing Agreement, on the day of such
Insolvency Event, the Depositor shall promptly give notice in writing to the
Indenture Trustee of the Insolvency Event, the Indenture Trustee shall,
following receipt of such notice, notify the Noteholders in writing of such
Insolvency Event and the Indenture Trustee shall, unless notified to the
contrary in writing by the Required Holders within 30 days after the Indenture
Trustee’s so notifying them, promptly act pursuant to and in accordance with
the terms thereof to sell, dispose of or otherwise liquidate the Collateral in
a commercially reasonable manner and on commercially reasonable terms. The
proceeds from any such sale, disposition or liquidation of Contracts shall be
deposited in the Collection Account and allocated as described in the Pooling
and Servicing Agreement and herein. 

27

               Promptly
following its receipt of notice hereunder or under any other Transaction
Document of any Event of Default, the Indenture Trustee shall send a copy
thereof to the Issuer and each Rating Agency. 

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

               (a)
The Issuer covenants that if the Notes are accelerated following the occurrence
of an Event of Default, the Issuer will, upon demand of the Indenture Trustee,
pay to it, for the benefit of the Holders of the Notes, the whole amount then
due and payable on such Notes for principal and interest, with interest upon
the overdue principal, and, to the extent payment at such rate of interest
shall be legally enforceable, upon overdue installments of interest, at the
applicable Interest Rate and in addition thereto such further amount as shall
be sufficient to cover reasonable costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Indenture Trustee and its agents and counsel. 

               (b)
The Indenture Trustee, following the occurrence and during the continuance of
an Event of Default, shall have full right, power and authority to take, or
defer from taking, any and all acts with respect to the administration,
maintenance or disposition of the Collateral. 

               (c)
If an Event of Default occurs which is continuing, the Indenture Trustee may in
its discretion (except as provided in Section 5.03(d)), and shall at the
direction of the Required Holders, proceed to protect and enforce its rights
and the rights of the Noteholders, by appropriate Proceedings to protect and
enforce any such rights, whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy or legal or equitable right
vested in the Indenture Trustee by this Indenture or by law. 

               (d)
Notwithstanding anything to the contrary contained in this Indenture if an
Event of Default shall have occurred which is continuing, and if the Issuer
fails to perform its obligations under Section 10.01(b) when and as due, the
Indenture Trustee may in its discretion, and shall at the direction of the
Required Holders, proceed to protect and enforce its rights and the rights of
the Noteholders by such appropriate Proceedings to protect and enforce any such
rights, whether for specific performance of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy or legal or equitable right vested in the Indenture
Trustee by this Indenture or by law, provided that the Indenture Trustee shall
only be entitled to take any such actions to the extent such actions (i) are
taken only to enforce the Issuer’s obligations to redeem the principal amount
of Notes, and (ii) are taken only against the Collateral, any investments
therein and any proceeds thereof. 

               (e)
In case there shall be pending, relative to the Issuer or any other obligor
upon the Notes or any Person having or claiming an ownership interest in the
Collateral, 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 

28

appointed for
or taken possession of the Issuer or its property or such other obligor or
Person, or in case of any other comparable judicial Proceedings relative to the
Issuer or other obligor upon the Notes, or to the creditors or property of the
Issuer or such other obligor, the Indenture Trustee, irrespective of whether
the principal of any Notes shall then be due and payable as therein expressed or
by declaration or otherwise and irrespective of whether the Indenture Trustee
shall have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such Proceedings or otherwise: 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
                    (iii)
  to collect and receive any moneys or other property payable or deliverable on
  any such claims and to distribute all amounts received with respect to the
  claims of the Noteholders and of the Indenture Trustee on their behalf in
  accordance with the Pooling and Servicing Agreement and this Indenture; and 

	
 

	
 

	
 

	
                    (iv)
  to file such proofs of claim and other papers or documents as may be
  necessary or advisable in order to have the claims of the Indenture Trustee
  or the Holders of Notes allowed in any judicial proceedings relative to the
  Issuer, its creditors and its property; 

and any
trustee, receiver, liquidator, custodian or other similar official in any such
Proceeding is hereby authorized by each of such Noteholders to make payments to
the Indenture Trustee, and, in the event that the Indenture Trustee shall
consent to the making of payments directly to such Noteholders, to pay to the
Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and their
respective agents, attorneys and counsel, and all other expenses, indemnities
and liabilities incurred, and all advances made, by the Indenture Trustee and
each predecessor Indenture Trustee except as a result of negligence, willful
misconduct or bad faith. 

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

29

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

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

          Section
5.04 Remedies. If an Event of Default shall have occurred and is
continuing the Indenture Trustee (subject to Section 5.05) may, and shall
(subject to Section 6.02) if so directed by the Required Holders in writing: 

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

               (b)
institute Proceedings from time to time for the complete or partial foreclosure
of this Indenture with respect to the Collateral; 

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

               (d)
direct the Issuer to sell the Collateral or any portion thereof or rights or
interest therein, at one or more public or private sales called and conducted
in any manner permitted by law; provided, however, that the Indenture Trustee
may not sell or otherwise liquidate the Collateral following an Event of
Default, other than an Event of Default described in Section 5.01(a) or (b),
unless (A) the Holders of 100% of the Outstanding Amount of the Notes consent
thereto, or (B) the proceeds, net of the unpaid fees and expenses of the
Indenture Trustee, of such sale or liquidation distributable to the Noteholders
are sufficient to discharge in full all amounts then due and unpaid upon such
Notes for principal and interest or (C) the Indenture Trustee determines that
the Collateral will not continue to provide sufficient funds for the payment of
principal of and interest on the Notes as they would have become due if the
Notes had not been declared due and payable, and the Indenture Trustee provides
prior written notice to each Rating Agency and obtains the consent of the
Required Holders. In determining such sufficiency or insufficiency with respect
to clauses (B) and (C), the Indenture Trustee may, but need not, obtain at the
expense of the Servicer and rely upon an opinion of an Independent investment
bank or an Independent Certificate from an accounting firm of national
reputation as to the feasibility of such proposed action and as to the
sufficiency of the Collateral for such 

30

purpose;
provided, however, upon the occurrence of an Event of Default described in
Section 5.01(e), caused solely from an event described in such subparagraph
occurring with respect to the Depositor, the Collateral will be liquidated by
the Indenture Trustee and the Trust will be terminated 90 days after the date
of such Insolvency Event, unless, before the end of such 90-day period, the
Indenture Trustee shall have received written instructions from the Required
Holders, to the effect that such Required Holders disapprove of the liquidation
of such Collateral and termination of such Trust. 

          Section
5.05 Optional Preservation of the Contracts. Following an Event of
Default which is continuing and except as otherwise provided above, the
Indenture Trustee may, but need not, at the expense of the Servicer elect to
maintain possession of the Collateral. It is the desire of the parties hereto
and the Noteholders that there be at all times sufficient funds for the payment
of principal and interest on the Notes. In determining whether to maintain
possession of the Collateral, the Indenture Trustee may, but need not, obtain
at the expense of the Servicer and rely upon an opinion of an Independent
investment bank or Independent Certificate of an accounting firm of national
reputation as to the feasibility of such proposed action and as to the
sufficiency of the Collateral for such purpose. 

          Section
5.06 Priorities. 

               (a)
Except as set forth in the following sentence, if the Indenture Trustee
collects any money or property pursuant to this Article Five, it shall remit
the money or property in the order and priority set forth in Section 7.05(b) of
the Pooling and Servicing Agreement. If the Indenture Trustee collects any
money or property pursuant to clause (A) or clause (B) of Section 5.04(d), it
shall remit the money or property, net of any unpaid fees or expenses payable
to the Indenture Trustee, in the order and priority set forth in Section
7.05(b) of the Pooling and Servicing Agreement. 

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

          Section
5.07 Limitation of Suits. No Holder of any Note shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless (and in all events subject to Section 11.16): 

               (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 Indenture Trustee
hereunder; 

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

31

               (d)
the Indenture Trustee for sixty (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 sixty (60) day period by the Holders of a
majority of the Outstanding Amount of the Notes, voting together as a single
class. 

               It
is understood and intended that no one or more Holders of Notes shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holders
of Notes or to obtain or to seek to obtain priority or preference over any
other Holders or to enforce any right under this Indenture, except in the
manner herein provided. 

               In
the event the Indenture Trustee shall receive conflicting or inconsistent
requests and indemnity from two or more groups of Holders of Notes, each
representing 25% or more but 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
5.08 Unconditional Rights of Noteholders to Receive Principal and Interest.
Notwithstanding any other provisions in this Indenture, the Holder of any Note
shall have the right, which is absolute and unconditional, to receive payment
of the principal of and interest on such Note on or after the respective due
dates thereof expressed in such Note or in this Indenture (or, in the case of
redemption, on or after the Redemption Date) and to institute suit for the
enforcement of any such payment, and such right shall not be impaired without the
consent of such Holder. 

          Section
5.09 Restoration of Rights and Remedies. If the 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 Indenture Trustee and the
Noteholders shall, subject to any determination in such Proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Indenture Trustee and the Noteholders shall
continue as though no such Proceeding had been instituted. 

          Section
5.10 Rights and Remedies Cumulative. No right or remedy herein conferred
upon or reserved to the 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
5.11 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 

32

or Event of
Default or an acquiescence therein. Every right and remedy given by this
Article Five or by law to the Indenture Trustee or to the Noteholders may be
exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee or by the Noteholders, as the case may be. 

          Section
5.12 Control by Noteholders. The Required Holders 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 (in all events
subject to Section 6.02(f)); provided that: 

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

               (b)
subject to the terms of Section 5.04, any direction to the Indenture Trustee to
sell or liquidate the Collateral shall be by the Holders of Notes representing
not less than 100% of the Outstanding Amount of the Notes; 

               (c)
if the conditions set forth in Section 5.05 have been satisfied and the
Indenture Trustee elects to retain the Collateral pursuant to such Section,
then any direction to the Indenture Trustee by Holders of Notes representing
less than 100% of the Outstanding Amount of the Notes to sell or liquidate the
Collateral shall be of no force and effect; and 

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

               Notwithstanding
the rights of Noteholders set forth in this Section, subject to Section 6.01,
the Indenture Trustee need not take any action that it determines might involve
it in liability. 

          Section
5.13 Waiver of Past Defaults. In the case of any waiver of an Event of
Default, 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 Event of Default or
impair any right consequent thereto. Upon any such waiver, such Event of
Default shall cease to exist and be deemed to have been cured and not to have
occurred, for every purpose of this Indenture. 

          Section
5.14 Undertaking for Costs. All parties to this Indenture agree, and
each Holder of any Note by such Holder’s acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an undertaking
to pay the costs of such suit and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against
any party litigant in such suit, having due regard to the merits and good faith
of the claims or defenses made by such party litigant; but the provisions of
this Section shall not apply to (i) any suit instituted by the Indenture
Trustee, (ii) 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 (iii) any suit instituted by any Noteholder for the enforcement
of the payment of principal of or interest on any Note on or 

33

after the
respective due dates expressed in such Note and in this Indenture (or, in the
case of redemption, on or after the Redemption Date). 

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

          Section
5.16 Action on Notes. The Indenture Trustee’s right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the
seeking, obtaining or application of any other relief under or with respect to
this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery
of any judgment by the Indenture Trustee against the Issuer or by the levy of
any execution under such judgment upon any portion of the Collateral or upon
any of the assets of the Issuer. Any money or property collected by the
Indenture Trustee under this Article Five shall be applied in accordance with
Section 7.05(b) of the Pooling and Servicing Agreement. 

          Section
5.17 Performance and Enforcement of Certain Obligations. 

               (a)
Promptly following a request from the Indenture Trustee to do so and at the
Administrator’s expense, the Issuer shall take all such lawful action as the
Indenture Trustee may reasonably request to compel or secure the performance
and observance by the Depositor and the Servicer as applicable, of each of
their obligations to the Issuer under or in connection with the Pooling and
Servicing Agreement in accordance with the terms thereof, and to exercise any
and all rights, remedies, powers and privileges lawfully available to the
Issuer under or in connection with the Pooling and Servicing Agreement to the
extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Depositor or the Servicer
thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Depositor or the Servicer of
each of their obligations under the Pooling and Servicing 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, including
facsimile with an original thereof to follow) of the Required Holders shall,
exercise all rights, remedies, powers, privileges and claims of the Issuer
against the Depositor or the Servicer under or in connection with the Pooling
and Servicing Agreement, including the right or power to take any action to
compel or secure performance or observance by the Depositor or the Servicer of
each of their obligations to the Issuer thereunder and to give any consent,
request, notice, direction, approval, extension or waiver which may be given by
the Issuer under the Pooling and Servicing Agreement, and any right of the
Issuer to take such action shall be suspended. 

34

ARTICLE SIX

THE INDENTURE TRUSTEE

          Section
6.01 Duties of Indenture Trustee. 

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

               (b)
Except upon and after the occurrence of an Event of Default of which a
Responsible Officer of the Indenture Trustee has actual knowledge: 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
                    (ii)
  in the absence of bad faith on its part, the Indenture Trustee may
  conclusively rely, as to the truth of the factual statements and the
  correctness of the opinions expressed therein, upon certificates or opinions
  furnished to the Indenture Trustee and conforming to the requirements of this
  Indenture; however, the Indenture Trustee shall examine the certificates and
  opinions to determine whether or not they conform on their face to the
  requirements of this Indenture and the other Transaction Documents to which
  the Indenture Trustee is a party. If any such instrument is found not to
  conform in any material respect to the requirements of this Indenture or the
  other Transaction Documents to which the Indenture Trustee is a party, the
  Indenture Trustee shall notify the Noteholders of such instrument in the
  event that the Indenture Trustee, after so requesting, does not receive a
  satisfactorily corrected instrument. 

               (c) The
Indenture Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act, its own bad faith or its own willful
misconduct, except that:

	
 

	
 

	
 

	
                    (i)
  this paragraph does not limit the effect of Section 6.01(b); 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
                    (iii)
  the Indenture Trustee shall not be liable with respect to any action it takes
  or omits to take in good faith in accordance with a direction received by it
  pursuant to Section 5.12 or any written direction of the Required Holders
  (or, if applicable the Holders of Notes representing 100% of the Outstanding
  Amount of the Notes). 

35

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

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

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

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

               (h)
The Indenture Trustee shall have no discretionary duties other than those
explicitly set forth in this Indenture. 

               (i)
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. 

               (j)
The Indenture Trustee shall not be required to take notice or be deemed to have
notice or knowledge of any Default or Event of Default unless a Responsible
Officer of the Indenture Trustee shall have received written notice or obtained
actual knowledge thereof. In the absence of receipt of such notice or actual
knowledge, the Indenture Trustee may conclusively assume that there is no
Default or Event of Default. 

               (k)
The Indenture Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, Officer’s Certificate,
opinion of counsel, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, consent, order,
appraisal, bond or other paper or document (whether in original or facsimile
form) believed by it to be genuine and to have been signed or presented by the
proper party or parties. 

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

               (m)
The Indenture Trustee shall not be required to give any bond or surety in
respect of the execution of the trust created hereby or the powers granted
hereunder. 

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

36

               Without
limiting the generality of this Section 6.01, the Indenture Trustee shall have
no duty (A) to see to any recording, filing, or depositing of this Indenture or
any Transaction Document or any financing statement or continuation statement
evidencing a security interest, or to see to the maintenance of any such
recording or filing or depositing or to any rerecording, refiling or
redepositing of any thereof, (B) to see to any insurance, or (C) to see to the
payment or discharge of any tax, assessment, or other governmental charge or
any lien or encumbrance of any kind owing with respect to, assessed or levied
against, any part of the Collateral. 

          Section
6.02 Rights of Indenture Trustee. 

               (a)
The Indenture Trustee hereby accepts the appointment (i) as the Owner Trustee’s
authenticating agent with respect to the Equity Certificate, (ii) as the
Certificate Registrar and (iii) as the Paying Agent for the Equity Certificate.

               (b)
The Indenture Trustee may conclusively rely on any document believed by it to
be genuine and to have been signed or presented by the proper person. The
Indenture Trustee need not investigate any fact or matter stated in such
document. 

               (c)
Before the Indenture Trustee acts or refrains from acting, it may require an
Officer’s Certificate (with respect to factual matters), advice of counsel or
an Opinion of Counsel, as applicable. The Indenture Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on such
Officer’s Certificate, advice of counsel or Opinion of Counsel. 

               (d)
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 any such agent,
attorney or custodian appointed by the Indenture Trustee with due care. 

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

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

               (g)
The Indenture Trustee shall, upon the occurrence of an Event of Default (that
has not been cured or waived), exercise the rights and powers vested in it by
this Indenture in a manner consistent with Section 6.01; provided, however,
that the Indenture Trustee shall be under no obligation to institute, conduct
or defend any litigation under this Indenture or in relation to this Indenture,
at the request, order or direction of any of the Holders of Notes, pursuant to
the provisions of this Indenture, unless such Holders of Notes shall have
offered to 

37

the Indenture
Trustee reasonable security or indemnity against the costs, expenses and
liabilities that may be incurred therein or thereby. 

               (h)
The Indenture Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper
or document, unless so requested by the Holders of 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 is, in the opinion of the Indenture Trustee, not reasonably
assured to the Indenture Trustee by the security afforded to it by the terms of
this Indenture or the Pooling and Servicing Agreement, the Indenture Trustee
may require reasonable indemnity against such cost, expense or liability as a
condition to so proceeding; the reasonable expense of every such examination
shall be paid by the Person making such request, or, if paid by the Indenture
Trustee, shall be reimbursed by the Person making such request upon demand. 

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

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

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

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

          Section
6.05 Notice of Defaults. If a Default occurs and if it is known to a
Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail
to each Noteholder notice of the Default within ninety (90) days after it
occurs. A Default shall be known to a Responsible Officer of the Indenture
Trustee if a Responsible Officer of the Indenture Trustee has actual knowledge
of such Default or has received notice thereof pursuant to Section 5.02. In the
absence of such knowledge or notice, the Indenture Trustee may conclusively
assume that there is no Default. Except in the case of an Event of Default in
payment of principal of or interest on any Note (including payments pursuant to
the redemption of such Notes), the Indenture Trustee 

38

may withhold
the notice if and so long as a committee of its Responsible Officers in good
faith determines that withholding the notice is in the interests of
Noteholders. 

          Section
6.06 Reports by Indenture Trustee to Holders. The Indenture Trustee
shall deliver to each Noteholder such information, including, without
limitation, IRS Form 1099, as may be required to enable such holder to prepare
its federal and state income tax returns. 

          Section
6.07 Compensation and Indemnity. The Issuer shall pay or shall cause the
Administrator or Servicer pursuant to the Pooling and Servicing Agreement to
pay to the Indenture Trustee from time to time reasonable compensation for its
services. The Indenture Trustee’s compensation shall not be limited by any law
on compensation of a trustee of an express trust. The Issuer shall or shall
cause the Administrator or Servicer to reimburse the Indenture Trustee for all
reasonable 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 indemnify or shall cause the Administrator or Servicer
pursuant to the Pooling and Servicing Agreement to indemnify the Indenture
Trustee (in their capacity as Indenture Trustee pursuant to this Indenture, as
Certificate Registrar pursuant to the Trust Agreement, and Paying Agent pursuant
to the Pooling and Servicing Agreement) and its officers, directors, employees
and agents against any and all loss, liability or expense (including reasonable
attorneys’ fees and expenses) incurred by it in connection with the
administration of this trust and the performance of its duties hereunder and
under the other Transaction Documents. The Indenture Trustee shall notify the
Issuer, the Servicer and the Administrator promptly of any claim of which a
Responsible Officer has received notice for which it may seek indemnity.
Failure by the Indenture Trustee to so notify the Issuer, the Servicer and the
Administrator shall not relieve the Issuer, the Administrator or the Servicer
of its obligations hereunder. The Issuer shall defend or shall cause the Administrator
or Servicer to defend any such claim, and the Indenture Trustee may have
separate counsel and the Issuer shall pay or shall cause the Administrator or
Servicer to pay the reasonable fees and expenses of such counsel. Neither the
Issuer nor the Administrator or Servicer need reimburse any expense or
indemnify against any loss, liability or expense incurred by the Indenture
Trustee conclusively determined by a court of law of competent jurisdiction to
have been incurred by the Indenture Trustee through the Indenture Trustee’s own
willful misconduct, negligence or bad faith. The parties hereto agree and
acknowledge that, notwithstanding anything to the contrary, all payments
required to be made pursuant to this Section 6.07 shall not be made from the
Trust Assets; provided, however, if an Event of Default has occurred and is
continuing, payments required to be made pursuant to this Section 6.07, to the
extent unpaid, shall be paid in accordance with Section 5.06; provided,
further, that any payments required to be made pursuant to this Section 6.07,
if unpaid, shall not constitute a general recourse claim against the Issuer.
Anything in this Indenture or any other Transaction Documents to the contrary
notwithstanding, in no event shall the Indenture Trustee be liable for special,
indirect or consequential loss or damage of any kind whatsoever (including but
not limited to lost profits), even if the Indenture Trustee has been advised of
the likelihood of such loss or damage and regardless of the form of action. 

               The
Issuer’s, Servicer’s and Administrator’s payment obligations to the Indenture
Trustee pursuant to this Section shall survive the resignation and removal of
the Indenture 

39

Trustee and
the discharge of this Indenture. When the Indenture Trustee incurs expenses
after the occurrence of an Event of Default specified in Section 5.01(e) 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. 

          Section
6.08 Replacement of Indenture Trustee. The Indenture Trustee may resign at any
time by so notifying the Issuer and the Servicer. The Issuer may remove the
Indenture Trustee if:  

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

               (b)
a court having jurisdiction in the premises in respect of the Indenture Trustee
in an involuntary case or proceeding under federal or state banking or
bankruptcy laws, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency or other similar law, shall have
entered a decree or order granting relief or appointing a receiver, liquidator,
assignee, custodian, trustee, conservator, sequestrator (or similar official)
for the Indenture Trustee or for any substantial part of the Indenture
Trustee’s property, or ordering the winding-up or liquidation of the Indenture
Trustee’s affairs, provided any such decree or order shall have continued
unstayed and in effect for a period of thirty (30) consecutive days; 

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

               (d)
the Indenture Trustee otherwise becomes incapable of acting as such; 

provided,
however, that the Indenture Trustee shall not be removed by the Issuer if an
Event of Default shall have occurred and be continuing without the written
concurrence of the Required Holders. 

               If
the Indenture Trustee resigns or is removed, the Issuer shall promptly appoint
a successor Indenture Trustee. 

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

40

               If
a successor Indenture Trustee does not take office within 60 days after the
retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Holders of a majority in Outstanding Amount of the
Notes may petition any court of competent jurisdiction for the appointment of a
successor Indenture Trustee. 

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

               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 this Section and payment of all amounts owed to the
outgoing Indenture Trustee. Notwithstanding the replacement of the Indenture
Trustee pursuant to this Section, the retiring Indenture Trustee shall be
entitled to payment or reimbursement of such amounts as such Person is entitled
pursuant to Section 6.07. 

          Section
6.09 Successor Indenture Trustee by Merger. If the Indenture Trustee
consolidates with, merges or converts into, or transfers all or substantially all
its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Indenture Trustee; provided, that such
corporation or banking association shall be otherwise qualified and eligible
under Section 6.11. 

               In
case at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the
certificate of authentication of any predecessor 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 to the Indenture Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Indenture Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Notes or in
this Indenture provided that the certificate of the Indenture Trustee shall
have. The Rating Agencies will be notified of any such merger or consolidation.

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

               (a)
Notwithstanding any other provision of this Indenture, at any time, for the
purpose of meeting any legal requirement of any jurisdiction in which any part
of the Collateral may at the time be located, the Indenture Trustee and the
Administrator acting jointly shall have the power and may execute and deliver
all instruments to appoint one or more Persons to act as a co-Indenture Trustee
or co-Indenture Trustees, jointly with the Indenture Trustee, or separate
Indenture Trustee or separate Indenture Trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Noteholders, such title to the Collateral, or any part hereof,
and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Indenture Trustee and the Administrator
may consider necessary or desirable. If the Administrator shall not have joined
in such appointment within 

41

fifteen (15)
days after the receipt by it of a request so to do, the Indenture Trustee alone
shall have the power to make such appointment. No co-Indenture Trustee or
separate Indenture Trustee hereunder shall be required to meet the terms of
eligibility of a successor Indenture Trustee under Section 6.11 and no notice
to Noteholders of the appointment of any co-Indenture Trustee or separate
Indenture Trustee shall be required under Section 6.08. 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
                    (iii)
  the Indenture Trustee and the Administrator may at any time accept the
  resignation of or remove any separate Indenture Trustee or co-Indenture
  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 Indenture Trustees and
co-Indenture Trustees, as effectively as if given to each of them. Every
instrument appointing any separate Indenture Trustee or co-Indenture Trustee
shall refer to this Indenture and the conditions of this Article. Each separate
Indenture Trustee and co-Indenture Trustee, upon its acceptance of the trusts
conferred, shall be vested with the estates or property specified in its
instrument of co-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 and a copy thereof given to the Administrator. 

               (d)
Any separate Indenture Trustee or co-Indenture 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 Indenture Trustee or co-Indenture 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
Indenture Trustee. Notwithstanding anything to 

42

the contrary
in this Indenture, the appointment of any separate Indenture Trustee or
co-Indenture Trustee shall not relieve the Indenture Trustee of its obligations
and duties under this Indenture. 

          Section
6.11 Eligibility. The Indenture Trustee shall at all times satisfy the
requirements of TIA §310(a). The Indenture Trustee hereunder shall at all times
be a financial institution organized and doing business under the laws of the
United States of America or any State or of the District of Columbia,
authorized under such laws to exercise corporate trust powers, whose long term
unsecured debt is rated at least Baa3 by Moody’s and shall have a combined
capital and surplus of at least $50,000,000 or shall be a member of a bank
holding system the aggregate combined capital and surplus of which is
$50,000,000 and subject to supervision or examination by federal or state
authority, provided that the Indenture Trustee’s separate capital and surplus shall
at all times be at least the amount required by Section 310(a)(2) of the TIA.
If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of a supervising or examining authority, then for
the purposes of this Section 6.11, the combined capital and surplus of such
Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section 6.11, the Trustee shall resign immediately in the manner and with the
effect specified in Section 6.08. The Indenture Trustee shall comply with TIA
§310(b); provided, however, that there shall be excluded from the operation of
TIA §310(b)(1) any indenture or indentures under which other securities of the
Issuer are outstanding if the requirements for such exclusion set forth in TIA
§310(b)(1) are met. 

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

          Section
6.13 Representations and Warranties of Indenture Trustee. The Indenture
Trustee in its individual capacity and as Indenture Trustee represents and
warrants as follows: 

               (a)
Organization and Corporate Power. It is a duly organized and validly
existing New York banking corporation in good standing under the laws of each
jurisdiction where its business so requires. It has full corporate power,
authority and legal right to execute, deliver and perform its obligations as
Indenture Trustee under this Indenture and the Administration Agreement (the
foregoing documents, the “Indenture Trustee Documents”) and to authenticate the
Notes. 

               (b)
Due Authorization. The execution and delivery of the Indenture Trustee
Documents, the consummation of the transactions provided for therein and the
authentication of the Notes have been duly authorized by all necessary
corporate action on its part, either in its individual capacity or as Indenture
Trustee, as the case may be. 

               (c)
No Conflict. The execution and delivery of the Indenture Trustee
Documents, the performance of the transactions contemplated thereby and the
fulfillment of the terms thereof (including the authentication of the Notes),
will not conflict with, result in any breach of any of the material terms and
provisions of, or constitute (with or without notice or 

43

lapse of time
or both) a default under, any indenture, contract, agreement, mortgage, deed or
trust, or other instrument to which the Indenture Trustee is a party or by which
it or any of its property is bound. 

               (d)
No Violation. The execution and delivery of the Indenture Trustee
Documents, the performance of the transactions contemplated thereby and the
fulfillment of the terms thereof (including the authentication of the Notes),
will not conflict with or violate, in any material respect, any Requirements of
Law applicable to the Indenture Trustee. 

               (e)
All Consents Required. All approvals, authorizations, consents, orders
or other actions of any Person or any Governmental Authority applicable to the
Indenture Trustee, required in connection with the execution and delivery of
the Indenture Trustee Documents, the performance by the Indenture Trustee of
the transactions contemplated thereby and the fulfillment by the Indenture
Trustee of the terms thereof (including the authentication of the Notes), have
been obtained. 

               (f)
Validity, Etc. Each Indenture Trustee Document constitutes a legal,
valid and binding obligation of the Indenture Trustee, enforceable against the
Indenture Trustee in accordance with its terms, except as such enforceability
may be limited by Insolvency Laws and except as such enforceability may be
limited by general principles of equity (whether considered in a suit at law or
in equity) or by an implied covenant of good faith and fair dealing. 

          Section
6.14 Execution of Transaction Documents. The Issuer hereby requests and
the Indenture Trustee agrees to execute and deliver the Indenture Trustee
Documents. 

ARTICLE SEVEN

NOTEHOLDERS’ LISTS AND REPORTS

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

          Section
7.02 Preservation of Information; Communication to Noteholders. 

               (a)
The Indenture Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Noteholders contained in the most
recent list furnished to the Indenture Trustee as provided in Section 7.01 and
the names and addresses of Noteholders received by the Indenture Trustee in its
capacity as Note Registrar and shall otherwise comply with TIA §312(a). The
Indenture Trustee may destroy any list furnished to it as provided in such
Section 7.01 upon receipt of a new list so furnished. 

44

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

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

          Section
7.03 Reports by Issuer. 

               (a)
The Issuer shall: 

	
 

	
 

	
 

	
                    (i)
  file with the Indenture Trustee, within fifteen (15) days after the Issuer or
  the Depositor is required (if at all) to file the same with the Commission,
  copies of the annual reports and of the information, documents and other
  reports (or copies of such portions of any of the foregoing as the Commission
  may from time to time by rules and regulations prescribe) that the Issuer or
  Depositor 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;

	
 

	
 

	
 

	
                    (iii)
  supply to the Indenture Trustee (and the Indenture Trustee shall make
  available to all Noteholders) copies of any information, documents and
  reports required to be filed by the Issuer pursuant to clauses (i) and (ii)
  of this Section 7.03(a) and by rules and regulations prescribed from time to
  time by the Commission; and

	
 

	
 

	
 

	
                    (iv)
  file with the Indenture Trustee reports and opinions in compliance with TIA
  §314(a) and TIA §314(b).

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

          Section
7.04 Reports by Indenture Trustee. If required by TIA §313(a), no later
than March 15, of each year beginning with March 15, 2007, the Indenture
Trustee shall mail to each Noteholder as required by TIA §313(c) a brief report
dated as of such date that complies with TIA §313(a). The Indenture Trustee
also shall comply with TIA §313(b). 

               A
copy of each report described in this Section 7.04 at the time of it being made
available 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 in writing if and when the Notes are
listed on any stock exchange. 

45

ARTICLE EIGHT

ACCOUNTS, DISBURSEMENTS AND RELEASES

          Section
8.01 Collection of Money. Except as otherwise expressly provided herein,
the Indenture Trustee may demand payment or delivery of, and shall receive and
collect, directly and without intervention or assistance of any fiscal agent or
other intermediary, all money and other property payable to or receivable by
the Indenture Trustee pursuant to this Indenture and the Pooling and Servicing
Agreement. The Indenture Trustee shall apply all such money received by it as
provided in the Pooling and Servicing Agreement and this Indenture. Except as
otherwise expressly provided in this Indenture, if any default occurs in the
making of any payment or performance under any agreement or instrument that is
part of the Collateral, 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 Five. 

          Section
8.02 Trust Accounts. 

               (a)
On or prior to the Closing Date, the Indenture Trustee shall establish and
maintain, in the name of the Indenture Trustee, for the benefit of the
Noteholders and the Equity Certificateholder, the Trust Accounts as provided in
Section 7.01 of the Pooling and Servicing Agreement. 

               (b)
The Indenture Trustee shall act as a Securities Intermediary hereunder. 

               (c)
On or before each Payment Date, the Indenture Trustee shall be in receipt of
all Collections which have been deposited by the Servicer into the Collection
Account pursuant to Section 7.01(a) of the Pooling and Servicing Agreement,
with respect to the preceding Collection Period. 

               (d)
On each Payment Date, the Indenture Trustee shall pay all amounts on deposit in
the Collection Account to Noteholders in respect of the Notes to the extent of
amounts due and unpaid on the Notes for principal and interest in the order and
priority set forth in Section 7.05(a) or (b), as the case may be, of the
Pooling and Servicing Agreement. 

          Section
8.03 General Provisions Regarding Accounts. 

               (a)
So long as no Default or Event of Default shall have occurred and is
continuing, all or a portion of the funds in the Trust Accounts shall be
invested in accordance with the provisions of Section 7.03 of the Pooling and
Servicing Agreement. Except as otherwise provided in Section 7.03 of the
Pooling and Servicing Agreement, all income or other gain from investments of
moneys deposited in the Collection Account shall be deposited by the Indenture
Trustee in the Collection Account. All income or other gain resulting from
investment of funds deposited in the Reserve Account shall be retained therein
until applied in accordance with the Pooling and Servicing Agreement. Any loss
resulting from such investments shall be charged to the related Trust Account.
The Issuer will not direct the Indenture Trustee to make any investment of any
funds or to sell any investment held in any of the Trust Accounts unless 

46

the security
interest granted and perfected in such account will continue to be perfected in
such investment or the proceeds of such sale, in either case without any
further action by any Person. 

               (b)
Subject to Section 6.01(c), the Indenture Trustee shall not in any way be held
liable by reason of any insufficiency in any of the Trust Accounts resulting
from any loss on any Eligible Investment included therein except for losses
attributable to the Indenture Trustee’s failure to make payments on such
Eligible Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as Indenture Trustee, in accordance with
their terms. 

               (c)
If (i) the Issuer shall have failed to give written investment directions for
any funds on deposit in the Trust Accounts to the Indenture Trustee by 11:00
a.m., New York City time (or such other time as may be agreed by the Issuer and
Indenture Trustee), on any Business Day or (ii) a Default or Event of Default
shall have occurred and be continuing with respect to the Notes but the Notes
shall not have been declared due and payable pursuant to Section 5.02 or (iii)
if such Notes shall have been declared due and payable following an Event of
Default, but amounts collected or receivable from the Collateral are being
applied in accordance with Section 5.05 as if there had not been such a
declaration, then the Indenture Trustee shall, to the fullest extent
practicable, invest and reinvest funds in the Trust Accounts in Eligible
Investments described in clause (vi) of the definition thereof in the Pooling
and Servicing Agreement. 

          Section
8.04 Release of Collateral. 

               (a)
Subject to the payment of its fees, expenses and indemnification pursuant to
Section 6.07, the Indenture Trustee may, and when required by the provisions of
this Indenture or the Pooling and Servicing Agreement shall, authorize by
written notice to the Servicer the filing of instruments to release property
from the lien of this Indenture (and, if such instruments require execution by
the Indenture Trustee, the Indenture Trustee shall execute such instruments),
or convey the Indenture Trustee’s interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture.
No party relying upon an instrument executed by the Indenture Trustee as
provided in this Article shall be bound to ascertain the Indenture Trustee’s
authority, inquire into the satisfaction of any conditions precedent or see to
the application of any moneys. 

               (b)
The Indenture Trustee shall, at such time as there are no Notes Outstanding and
all sums due the Indenture Trustee pursuant to Section 6.07 have been paid,
release any remaining portion of the Collateral that secured the Notes from the
lien of this Indenture and release to the Issuer or any other Person entitled
thereto any funds then on deposit in the Trust Accounts. The Indenture Trustee
shall release property from the lien of this Indenture pursuant to this Section
8.04(b) only upon receipt of an Issuer Request accompanied by an Officer’s
Certificate. 

47

ARTICLE NINE

SUPPLEMENTAL INDENTURES

          Section
9.01 Supplemental Indentures Without Consent of Noteholders. 

               Without
the consent of the Holders of any Notes and with prior notice to each Rating
Agency, the Issuer and the Indenture Trustee, when authorized by an Issuer
Order and upon receipt by the Indenture Trustee of an Opinion of Counsel, and
the other parties hereto at any time from time to time, may enter into one or
more indentures supplemental hereto (which shall conform to the provisions of
the TIA as in force at the date of the execution thereof), in form reasonably
satisfactory to the Indenture Trustee, for any of the following purposes: 

	
 

	
 

	
 

	
                    (i) to
  correct or amplify the description of any property at any time subject to the
  lien of this Indenture, or better to assure, convey and confirm unto the
  Indenture Trustee any property subject or required to be subjected to the
  lien created by this Indenture, or to subject to the lien created by 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 the Transaction Documents or to
  make any other changes or provisions with respect to matters or questions
  arising under this Indenture or in any supplemental indenture; provided that
  such action shall not adversely affect the interests of the Holders of the
  Notes; 

	
 

	
 

	
 

	
                    (vi)
  to evidence and provide for the acceptance of the appointment hereunder by a
  successor Indenture 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 Indenture
  Trustee, pursuant to the requirements of Article Six; and

	
 

	
 

	
 

	
                    (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.

48

               The
Indenture Trustee is hereby authorized to enter into any such supplemental
indenture and to make any further appropriate agreements and stipulations that
may be therein contained. 

          Section
9.02 Supplemental Indentures With Consent of Noteholders. The Issuer and
the Indenture Trustee, when authorized by an Issuer Order, also may, with prior
notice to each Rating Agency, and with the consent of a Majority in Interest,
by Act of such Holders delivered to the Issuer and the Indenture Trustee, enter
into an indenture or indentures supplemental hereto, upon receipt by the
Indenture Trustee of an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture and that
all the conditions precedent applicable thereto under this Indenture have been
satisfied, for the purpose of adding any provisions to, or changing in any
manner or eliminating any of the provisions of, this Indenture or of modifying
in any manner the rights of the Holders of the Notes under this Indenture;
provided, however, that, no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Note affected thereby: 

	
 

	
 

	
 

	
                    (i)
  change the date of payment of any installment of principal of or interest on
  any Note, or reduce the principal amount thereof, the interest rate thereon
  or the Redemption Date Amount with respect thereto, change the provisions of
  this Indenture relating to the application of Collections on, or the proceeds
  of the sale of, the Collateral 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
  Five, to the payment of any such amount due on the Notes on or after the
  respective due dates thereof (or, in the case of redemption, on or after the
  Redemption Date); 

	
 

	
 

	
 

	
                    (ii) reduce
  the percentage of the Outstanding Amount of the Notes, the consent of the
  Holders of which is required for any such supplemental indenture, or the
  consent of the Holders of which is required for any waiver of compliance with
  certain provisions of this Indenture or certain defaults hereunder and their
  consequences provided for in this Indenture; 

	
 

	
 

	
 

	
                    (iii)
  modify or alter the provisions of the second 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 Collateral pursuant to
  Section 5.04 or amend the provisions of this Article which specify the
  percentage of the Outstanding Amount of the Notes required to amend this
  Indenture or the other Transaction Documents;

	
 

	
 

	
 

	
                    (v)
  modify any provision of this Section except to increase any percentage
  specified herein or to provide that certain additional provisions of this
  Indenture or the other Transaction Documents cannot be modified or waived
  without the consent of the Holder of each Outstanding Note affected thereby;
  or 

49

	
 

	
 

	
 

	
                    (vi)
  permit the creation of any lien (other than Permitted Liens) ranking prior to
  or on a parity with the lien created by this Indenture with respect to any
  part of the Collateral or, except as otherwise permitted or contemplated
  herein, terminate the lien created by this Indenture on any property at any
  time subject hereto or deprive the Holder of any Note of the security
  provided by the lien created by this Indenture.

               Neither
the Issuer, the Indenture Trustee nor any of their respective Affiliates shall,
directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fee or otherwise, to any Noteholder for or as an inducement to
any consent, waiver or amendment of any of the terms or provisions of this
Indenture, the Pooling and Servicing Agreement or the Notes unless such
consideration is offered to be paid to all Noteholders that so consent, waive
or agree to amend in the time frame set forth in solicitation documents
relating to such consent, waiver or agreement. 

               The
Indenture Trustee may in its discretion determine whether or not any Notes
would be adversely affected by any supplemental indenture and any such
determination shall be conclusive upon the Holders of the Notes, whether
theretofore or thereafter authenticated and delivered hereunder. The Indenture
Trustee shall not be liable for any such determination made in good faith and
in reliance upon an Opinion of Counsel. 

               It
shall not be necessary for any Act of Noteholders under this Section to approve
the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof. 

               Promptly
after the execution by the parties hereto of any supplemental indenture
pursuant to this Section, the Issuer 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 Issuer to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such supplemental indenture. 

          Section
9.03 Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this
Article or the modifications thereby of the trusts created by this Indenture,
the Indenture Trustee shall be provided with, and subject to Sections 6.01 and
6.02 shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Indenture Trustee may, but shall not be obligated to, enter
into any such supplemental indenture that affects the Indenture Trustee’s own
rights, duties, liabilities or immunities under this Indenture or otherwise. 

          Section
9.04 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations
of rights, obligations, duties, liabilities and immunities under this Indenture
of the parties hereto and the Holders of the Notes shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such
modifications and 

50

amendments,
and all the terms and conditions of any such supplemental indenture shall be
and be deemed to be part of the terms and conditions of this Indenture for any
and all purposes. 

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

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

ARTICLE TEN

REDEMPTION

          Section
10.01 Redemption. 

               (a)
In the event that the Servicer pursuant to Section 7.08 of the Pooling and
Servicing Agreement, purchases the corpus of the Trust, the Notes are subject
to redemption in whole, but not in part, on the Payment Date on which such
purchase occurs, for a purchase price equal to the Redemption Date Amount;
provided, however, that the Issuer has available funds sufficient to pay such
amounts. The Servicer or the Issuer shall furnish each Rating Agency notice of
such redemption. If the Notes are to be redeemed pursuant to this Section
10.01(a), the Servicer or the Issuer shall furnish notice of such election to
the Indenture Trustee not later than twenty (20) days prior to the Redemption
Date and the Issuer shall deposit with the Indenture Trustee in the Collection Account
no later than one Business Day prior to the Redemption Date the Redemption Date
Amount of the Notes to be redeemed whereupon all such Notes shall be due and
payable on the Redemption Date upon the furnishing of a notice complying with
Section 10.02 to each Holder of the Notes. 

               (b)
In the event that the assets of the Trust are sold pursuant to Section 9.02 of
the Trust Agreement or Section 5.03(b) of this Indenture, the proceeds of such
sale shall be distributed as provided in Section 5.06. If amounts are to be
paid to Noteholders pursuant to this Section 10.01, the Servicer or the Issuer
shall, to the extent practicable, furnish notice of such event to the Indenture
Trustee not later than twenty (20) days prior to the Redemption Date whereupon
all such amounts shall be payable on the Redemption Date. 

          Section
10.02 Form of Redemption Notice. Notice of redemption under Section
10.01(a) shall be given by the Indenture Trustee by first-class mail, postage
prepaid, mailed not less than five days prior to the applicable Redemption Date
to each Holder of Notes, as of the 

51

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 Date Amount; and 

                    (iii)
  the place where such Notes are to be surrendered for payment of the
  Redemption Date Amount (which shall be the office or agency of the Issuer to
  be maintained as provided in Section 3.02). 

               Notice
of redemption of the Notes shall be given by the Indenture Trustee in the name
and at the expense of the Issuer. Failure to give notice of redemption, or any
defect therein, to any Holder of any Note shall not impair or affect the
validity of the redemption of any other Note. 

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

ARTICLE ELEVEN

MISCELLANEOUS

          Section
11.01 Compliance Certificates and Opinions, Etc. 

               (a)
Upon any application or request by the Issuer to the Indenture Trustee to take
any action under any provision of this Indenture, the Issuer shall furnish to
the Indenture Trustee (i) an Officer’s Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, and (ii) an Independent Certificate from a firm
of certified public accountants meeting the applicable requirements of this
section and TIA §314(c), except that, in the case of any such application or
request as to which the furnishing of documents is specifically required by any
provision of this Indenture, no additional certificate or opinion need be
furnished. 

               (b)
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;

52

	
 

	
 

	
 

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

	
 

	
 

	
 

	
               (iii)
  a statement that, in the opinion of each such signatory, such signatory has
  made such examination or investigation as is necessary to enable such
  signatory to express an informed opinion as to whether or not such covenant
  or condition has been complied with; and 

	
 

	
 

	
 

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

          Section
11.02 Form of Documents Delivered to Indenture Trustee. In any case
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons may certify or give an opinion as to other matters, and any such
Person may certify or give an opinion as to such matters in one or several
documents. 

               Any
certificate or opinion of an Authorized Officer of the Issuer may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel
may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Servicer,
CFUSA or the Issuer, stating that the information with respect to such factual
matters is in the possession of the Servicer, CFUSA 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, opinions or other instruments under this
Indenture, they may, but need not, be consolidated and form one instrument. 

               Whenever
in this Indenture, in connection with any application or certificate or report
to the Indenture Trustee, it is provided that the Issuer shall deliver any
document as a condition of the granting of such application, or as evidence of
the Issuer’s compliance with any term hereof, it is intended that the truth and
accuracy, at the time of the granting of such application or at the effective
date of such certificate or report (as the case may be), of the facts and
opinions stated in such document shall in such case be conditions precedent to
the right of 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
Six. 

53

          Section
11.03 Acts of Noteholders. 

               (a)
Any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken (manually or by
facsimile) by Noteholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Noteholders in person
or by agents duly appointed in writing; and except as herein otherwise
expressly provided such action shall become effective when such instrument or
instruments are delivered to the Indenture Trustee, and, where it is hereby
expressly required, to the Issuer. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the Noteholders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
6.01) conclusive in favor of the Indenture Trustee and the Issuer, if made in
the manner provided in this Section. 

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

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

               (d)
Any request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Notes shall bind the Holder of every Note issued
upon the registration thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Indenture
Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note. 

          Section
11.04 Notices. All notices, demands, certificates, requests and
communications hereunder (“Notices”) shall be in writing and shall be effective
(a) upon receipt when sent through the U.S. mails, registered or certified
mail, return receipt requested, postage prepaid, with such receipt to be
effective the date of delivery indicated on the return receipt, or (b) one
Business Day after delivery to an overnight courier specifying one business
day’s delivery, or (c) on the date personally delivered to an Authorized
Officer of the party to which sent, or (d) on the date transmitted by legible
telecopier transmission with a confirmation of receipt, in all cases addressed
to the recipient at the address specified in the Pooling and Servicing
Agreement for such recipient. 

               Each
party hereto may, by Notice given in accordance herewith to each of the other
parties hereto, designate any further or different address to which subsequent
Notices shall be sent. 

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

54

Notice with
respect to other Noteholders, and any Notice that is mailed in the manner
herein provided shall conclusively be presumed to have been duly given. 

               Where
this Indenture provides for Notice in any manner, such Notice may be waived in
writing by any Person entitled to receive such Notice, either before or after
the event, and such waiver shall be the equivalent of such Notice. Waivers of
Notice by Noteholders shall be filed with the Indenture Trustee but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such a waiver. 

               In
case, by reason of the suspension of regular mail service as a result of a
strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be
a sufficient giving of such notice. 

               Where
this Indenture provides for notice to the Rating Agencies, failure to give such
notice shall not affect any other rights or obligations created hereunder, and
shall not under any circumstance constitute a Default or Event of Default. 

          Section
11.06 Alternate Payment and Notice Provisions. Notwithstanding any
provisions 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, at the sole
expense of the Issuer or the Holder, for a method of payment, or notice by the
Indenture Trustee or any Paying Agent to such Holder, that is different from
the methods provided for in this Indenture for such payments or notices. The
Issuer will furnish to the Indenture Trustee a copy of each such agreement and
the Indenture Trustee will cause payments to be made and notices to be given in
accordance with such agreements. 

          Section
11.07 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
11.08 Successors and Assigns. All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed or not. All agreements of the Indenture Trustee in this
Indenture shall bind its successors, co-Indenture Trustees and agents. 

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

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

55

          Section
11.11 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
11.12 Governing Law. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS, AND
REMEDIES OF THE PARTIES UNDER THIS INDENTURE SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS. 

          Section
11.13 Counterparts. This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument. 

          Section
11.14 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 Issuer or any other counsel) to the effect that such
recording is necessary either for the protection of the Noteholders or any
other Person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee under this Indenture. 

          Section
11.15 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 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 or employee of the Indenture Trustee or
the Owner Trustee in their individual capacities, the Issuer, any successor or
assign of the Indenture Trustee or the Owner Trustee in their individual
capacities, 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 capacities) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital contribution
or failure to pay any installment or call owing to such entity. For all
purposes of this Indenture, in the performance of any duties or obligations of
the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to
the benefits of, the terms and provisions of Article Six, Seven and Eight of
the Trust Agreement. 

          Section
11.16 No Petition. The parties hereto, by entering into this Indenture,
and each Noteholder, by accepting a Note or a beneficial interest in a Note,
hereby covenant and agree that they will not at any time institute against
CFUSA, the Depositor or the Issuer, or join in any institution against CFUSA,
the Depositor or the Issuer, of any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any United
States federal or state bankruptcy or similar law. The parties hereto further
covenant and agree that the obligations of this Section 11.16 shall survive
termination of this Agreement. 

56

          Section
11.17 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
11.18 Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof that is required to be
included in this Indenture by any of the provisions of the Trust Indenture Act,
such required provision shall control. 

          Section
11.19 Communication by Noteholders With Other Noteholders. Noteholders
may communicate with other Noteholders with respect to their rights under this
Indenture or the Notes pursuant to Section 312(b) of the TIA. Every Noteholder,
by receiving and holding the same, agrees with the Issuer and the Indenture
Trustee that none of the Issuer and the Indenture Trustee nor any agent of the
Issuer and the Indenture Trustee shall be deemed to be in violation of any
existing law, or any law hereafter enacted which does not specifically refer to
Section 312 of the TIA, by reason of the disclosure of any such information as
to the names and addresses of the Noteholders in accordance with Section 312 of
the TIA, regardless of the source from which such information was derived, and
that the Indenture Trustee shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 312(b) of the TIA. 

          Section
11.20 Trust Indenture Act Controls. Notwithstanding any provision or
term contained in this Indenture to the contrary, if any provision of this
Indenture, in whole or in part, limits, restricts, mitigates, lessens,
circumscribes, qualifies, or conflicts with, any of the duties, obligations or
responsibilities imposed by operation of the Trust Indenture Act, the duties,
obligations, and responsibilities imposed by the Trust Indenture Act shall
control, apply and govern in all respects. 

          Section
11.21 Limited Recourse. The Indenture Trustee, by entering into this
Agreement, hereby covenants and agrees that it shall only have recourse against
the Issuer to the extent of the funds on hand and the assets of the Issuer and
such recourse will extend only to amounts in excess of amounts necessary to
make payments of the Notes. 

          Section
11.22 Waiver of Jury Trial. EACH OF THE ISSUER AND INDENTURE TRUSTEE
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 

          Section
11.23 Force Majeure. In no event shall the Indenture Trustee be
responsible or liable for any failure or delay in the performance of its
obligations hereunder arising out of or 

57

caused by,
directly or indirectly, forces beyond its control, including, without
limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes, or other similar
catastrophic acts, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being
understood that the Indenture Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances. 

58

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

	
 

	
 

	
 

	
 

	
 

	
CIT EQUIPMENT
  COLLATERAL 2006-VT2

	
 

	
 

	
 

	
 

	
By:

	
THE BANK OF
  NEW YORK
(DELAWARE), not in its individual capacity but solely on behalf of
  the Issuer as Owner Trustee under the Trust Agreement

	
 

	
 

	
 

	
 

	
By:

	
 /s/ Kristine K. Gullo 

	
 

	
 

	

	
 

	
 

	
  Name:

	
 Kristine K. Gullo

	
 

	
 

	
  Title:

	
 Vice President 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
DEUTSCHE
  BANK TRUST COMPANY AMERICAS, not in its individual capacity but solely as
  Indenture Trustee

	
 

	
 

	
 

	
 

	
By:

	
 /s/ Irene Siegel 

	
 

	
 

	

	
 

	
 

	
  Name:

	
 Irene Siegel

	
 

	
 

	
  Title:

	Vice President
	
 

	
 

	
 

	
 

	
By:

	
 /s/ Louis Bodi

	
 

	
 

	

	
 

	
 

	
  Name:

	
 Louis Bodi 

	
 

	
 

	
  Title:

	Vice President

59

SCHEDULE A

LIST OF CONTRACTS

[On file with McDermott Will & Emery LLP]

EXHIBIT A-1 

FORM OF CLASS A-1 NOTE

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. 

               THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE UNITED
STATES OR ANY AGENCY OR FUND OF THE UNITED STATES. 

               THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE SET FORTH HEREIN AND MAY
BE PREPAID TO THE EXTENT OF FUNDS AVAILABLE FOR SUCH PURPOSE ON EACH PAYMENT
DATE. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 

CIT EQUIPMENT COLLATERAL 2006-VT2

5.34435% CLASS A-1 RECEIVABLE-BACKED NOTES

	
 

	
 

	
REGISTERED

	
$[______] 

	
 

	
 

	
No. A-1-1

	
CUSIP NO. [______] 

               THIS
NOTE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN CIT FUNDING COMPANY,
LLC, CIT FINANCIAL USA, INC., CIT GROUP INC. OR ANY AFFILIATE THEREOF. 

               CIT
Equipment Collateral 2006-VT2, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to Cede & Co., or its registered assigns,
the principal sum of [______] Dollars ($[________]) payable on the earlier of
November 20, 2007 (the “Class A-1 Maturity Date”) and the Redemption Date, if
any, pursuant to the Indenture referred to herein below. 

               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 the Indenture.
Interest on this Note will accrue for each Payment Date from the 

A-1-1

most recent
Payment Date on which interest has been paid to but excluding such Payment Date
or, if no interest has yet been paid, from the Closing Date. Interest will be computed
on the basis of a 360-day year and actual days elapsed. Such principal of and
interest on this Note shall be paid in the manner specified herein below. 

               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. 

               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 herein below, or be
valid or obligatory for any purpose. 

               This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its 5.34435% Class A-1 Receivable-Backed Notes (the “Class A-1 Notes”), all issued
under an Indenture, dated as of October 1, 2006 (the “Indenture”), between the
Issuer and Deutsche Bank Trust Company Americas, as Indenture Trustee (the
“Indenture Trustee”), 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 Class A-1 Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended. All terms used in this Note that are
defined in the Pooling and Servicing Agreement dated as of October 1, 2006 by
and among CIT Funding Company, LLC, CIT Financial USA, Inc., and the Issuer
(the “Pooling and Servicing Agreement”) shall have the meanings assigned to
them therein. 

               The
Class A-1 Notes and the other Notes described in the Indenture (collectively,
the “Notes”) are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture, subject to the
priorities of allocations as to interest and principal payments as described
therein and in the Pooling and Servicing Agreement. 

               Principal
of the Class A-1 Notes will be payable on the earlier of the Class A-1 Maturity
Date and the Redemption Date, if any, selected pursuant to the Indenture. Notwithstanding
the foregoing, the entire unpaid principal amount of the Class A-1 Notes shall
be due and payable as and to the extent provided in the Indenture if an Event
of Default shall have occurred and be continuing, unless the Required Holders
have waived such Event of Default. 

               Payments
of interest on this Note due and payable on each Payment Date shall be made by
check mailed to the Person whose name appears as the Registered Holder of this
Note on the Note Register as of the close of business on each Record Date
immediately preceding the related Payment Date, except that with respect to
Notes registered on the applicable Record Date in the name of a nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled
thereto at the address of 

A-1-2

such Person as
it appears on the Note Register as of the applicable Record Date without
requiring that this Note be submitted for notation of payment. Any reduction in
the principal amount of this Note affected by any payments made on any Payment
Date shall be binding upon all future Holders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon or thereon. If funds are expected to
be available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed within five (5) Business Days of such
Payment Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Corporate Trust Office of the
Indenture Trustee or at the office of the Indenture Trustee’s agent appointed
for such purposes located in New York City. 

               As
provided in the Indenture, the Notes may be redeemed pursuant to the Indenture,
in whole, but not in part, at the option of the Servicer, on the Payment Date
on or after the date on which the Aggregate Principal Amount of the Notes
outstanding is less than 10% of the Initial Contract Pool Principal Balance. 

               As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new Class A-1 Notes of
authorized denominations and in the same Aggregate Principal Amount will be
issued to the designated transferee or transferees (and, if applicable, such
Holder). No service charge will be charged for any registration of transfer or
exchange of this Note, but the transferor may be required to pay a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any such registration of transfer or exchange. 

               Each
Noteholder by acceptance of a Note or a beneficial interest in a Note covenants
and agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner Trustee
in their individual capacities, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in their individual
capacities, the Issuer or any successor or assign of the Indenture Trustee or
the Owner Trustee in their individual capacities or the Issuer, 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
capacities) 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. 

A-1-3

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against CFUSA, the
Depositor or the Issuer, or join in any institution against CFUSA, the
Depositor or the Issuer of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law. 

               The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness which is solely
secured by the Collateral and that the Trust will be disregarded as a separate
entity for federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3 (b)(l)(ii). Each Noteholder, by acceptance of a Note or of a
beneficial interest in a Note, agrees to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness. 

               Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer and the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note may be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary. 

               By
purchasing this Note, the holder is deemed to represent that the acquisition
and holding of this Note will not constitute a prohibited transaction in
violation of Section 406 of ERISA or Section 4975 of the Code which is not
covered by (i) prohibited transaction class exemption (“PTCE”) 84-14, PTCE
90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, (ii) the statutory exemption that may
be available under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the
Code to a party in interest that is a service provider to a plan investing in
the Notes for adequate consideration (as determined in good faith by the plan
fiduciary pursuant to regulations that, as of the date of the Indenture, are to
be promulgated by the U.S. Department of Labor), provided such service provider
is not (A) the fiduciary with respect to the plan’s assets used to acquire the
notes or an affiliate of such fiduciary or (B) an affiliate of the employer
sponsoring the plan or (iii) some other applicable class or individual
exemption (or, in the case of a governmental or church plan, any similar
federal, state or local law, does not cause a non-exempt violation of any
substantially similar law). 

               The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Noteholders under the Indenture at any time by the Issuer
with the consent of the Majority in Interest of the Notes. The Indenture also
contains provisions permitting the Noteholders representing specified
percentages of the Outstanding Amount of the Notes, on behalf of the
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain defaults under the Indenture and their consequences. Any
such consent or waiver by the Noteholders shall be conclusive and binding upon
such Holders and upon all future Holders of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this or such Note. The
Indenture 

A-1-4

also permits
the Indenture Trustee to amend or waive certain terms and conditions set forth
in the Indenture without the consent of Noteholders. 

               The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth. 

               This
Note and the Indenture shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws. 

               No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed. 

A-1-5

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

	
 

	
 

	
 

	
 

	
Date:
  November 22, 2006

	
CIT EQUIPMENT
  COLLATERAL 2006-VT2

	
 

	
 

	
 

	
 

	
 

	
By:

	
THE BANK OF
  NEW YORK
(DELAWARE) not in its individual capacity but solely on behalf of
  the Issuer as Owner Trustee under the Trust Agreement

	
 

	
 

	
 

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
DEUTSCHE
  BANK TRUST COMPANY AMERICAS, not in its individual capacity but solely as
  Indenture Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

A-1-6

FORM OF NOTE ASSIGNMENT

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

	
 

	
PLEASE
  INSERT SOCIAL SECURITY OR

  OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
 

	

	
(Please
  print or type name and address, including postal zip code, of assignee)

	
 

	

	
the within
  Note, and all rights thereunder, hereby irrevocably constituting and
  appointing

	
 

	

	
to transfer
  said Note on the books kept for registration thereof, with full power of
  substitution in the premises.

	
 

	
 

	
 

	
Dated:

	
 

	
 

	
 

	

	
 

Signature
Guaranteed:

	
 

	
 

	
 

	

	
 

	

	
Signature
  must be guaranteed by an eligible guarantor institution which is a
  participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
  similar signature guarantee program

	
 

	
Notice: The
  signature(s) on this assignment must correspond with the name(s) as it
  appears on the face of the within Note in every particular, without
  alteration or enlargement or any change whatsoever

	
 

	
 

	
 

	

	
 

	

	
(Authorized
  Officer)

	
 

	
 

A-1-7

EXHIBIT A-2

FORM OF CLASS A-2 NOTE

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.

               THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

               THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE SET FORTH HEREIN AND MAY
BE PREPAID TO THE EXTENT OF FUNDS AVAILABLE FOR SUCH PURPOSE ON EACH PAYMENT
DATE. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

CIT EQUIPMENT COLLATERAL 2006-VT2

5.19% CLASS A-2 RECEIVABLE-BACKED NOTES

	
 

	
 

	
REGISTERED

	
$[______]

	
 

	
 

	
No. A-2-1

	
CUSIP NO. [______]

               THIS
NOTE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN CIT FUNDING COMPANY,
LLC, CIT FINANCIAL USA, INC., CIT GROUP INC. OR ANY AFFILIATE THEREOF.

               CIT
Equipment Collateral 2006-VT2, a statutory trust organized and existing under
the laws of the State of Delaware (herein referred to as the “Issuer”), for
value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of [______] Dollars ($[________]) payable on the
earlier of January 20, 2009 (the “Class A-2 Maturity Date”) and the Redemption
Date, if any, pursuant to the Indenture referred to herein below.

               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 the
Indenture. Interest on this Note will accrue for each Payment Date from the

A-2-1

most recent
Payment Date on which interest has been paid to but excluding such Payment Date
or, if no interest has yet been paid, from the Closing Date. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. Such principal
of and interest on this Note shall be paid in the manner specified herein
below.

               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.

               The
Payment of interest and principal on the Class A-2 Notes is subject to certain
prior payment rights of the Holders of Class A-1 Notes, as set forth in the
Indenture.

               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 herein below, or be
valid or obligatory for any purpose.

A-2-2

               This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its 5.19% Class A-2 Receivable-Backed Notes (the “Class A-2 Notes”), all issued
under an Indenture, dated as of October 1, 2006 (the “Indenture”), between the
Issuer and Deutsche Bank Trust Company Americas, as Indenture Trustee (the
“Indenture Trustee”), 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 Class A-2 Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended. All terms used in this Note that are
defined in the Pooling and Servicing Agreement dated as of October 1, 2006 by
and among CIT Funding Company, LLC, CIT Financial USA, Inc., and the Issuer
(the “Pooling and Servicing Agreement”) shall have the meanings assigned to
them therein.

               The
Class A-2 Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
Collateral pledged as security therefor as provided in the Indenture, subject to
the priorities of allocations as to interest and principal payments as
described therein and in the Pooling and Servicing Agreement.

               Principal
of the Class A-2 Notes will be payable on the earlier of the Class A-2 Maturity
Date and the Redemption Date, if any, pursuant to the Indenture.
Notwithstanding the foregoing, the entire unpaid principal amount of the Class
A-2 Notes shall be due and payable as and to the extent provided in the
Indenture if an Event of Default shall have occurred and be continuing, unless
the Required Holders have waived such Event of Default.

               Payments
of interest on this Note due and payable on each Payment Date shall be made by
check mailed to the Person whose name appears as the Registered Holder of this
Note on the Note Register as of the close of business on each Record Date
immediately preceding the related Payment Date, except that with respect to
Notes registered on the applicable Record Date in the name of a nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of
the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note
affected by any payments made on any Payment Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon or thereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Payment Date, then the Indenture Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Registered Holder
hereof as of the Record Date preceding such Payment Date by notice mailed within
five (5) Business Days of such Payment Date and the amount then due and payable
shall be payable only upon presentation and surrender of this Note at the
Corporate Trust Office of the Indenture Trustee or at the office of the
Indenture Trustee’s agent appointed for such purposes located in New York City.

               As
provided in the Indenture, the Notes may be redeemed pursuant to the Indenture,
in whole, but not in part, at the option of the Servicer, on the Payment Date
on or after

A-2-3

the date on which
the Aggregate Principal Amount of the Notes outstanding is less than 10% of the
Initial Contract Pool Principal Balance.

               As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or similar
signature guarantee program, and such other documents as the Indenture Trustee
may require, and thereupon one or more new Class A-2 Notes of authorized
denominations and in the same Aggregate Principal Amount will be issued to the
designated transferee or transferees(and, if applicable, such Holder). No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

               Each
Noteholder by acceptance of a Note or a beneficial interest in a Note covenants
and agrees that no recourse may be taken, directly or indirectly, with respect
to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner Trustee
in their individual capacities, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in their individual
capacities, the Issuer or any successor or assign of the Indenture Trustee or
the Owner Trustee in their individual capacities or the Issuer, 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
capacities) and except that any such partner, owner or beneficiary shall be
fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against CFUSA, the
Depositor or the Issuer, or join in any institution against CFUSA, the
Depositor or the Issuer of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law.

               The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness which is solely
secured by the Collateral and that the Trust will be disregarded as a separate
entity for federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3 (b)(1)(ii). Each Noteholder, by acceptance of a Note or of a
beneficial interest in a Note, agrees to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness.

A-2-4

               Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer and the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note may be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary.

               By
purchasing this Note, the holder is deemed to represent that the acquisition
and holding of this Note will not constitute a prohibited transaction in
violation of Section 406 of ERISA or Section 4975 of the Code which is not
covered by (i) prohibited transaction class exemption (“PTCE”) 84-14, PTCE
90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, (ii) the statutory exemption that may
be available under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the
Code to a party in interest that is a service provider to a plan investing in
the Notes for adequate consideration (as determined in good faith by the plan
fiduciary pursuant to regulations that, as of the date of the Indenture, are to
be promulgated by the U.S. Department of Labor), provided such service provider
is not (A) the fiduciary with respect to the plan’s assets used to acquire the
notes or an affiliate of such fiduciary or (B) an affiliate of the employer
sponsoring the plan or (iii) some other applicable class or individual
exemption (or, in the case of a governmental or church plan, any similar
federal, state or local law, does not cause a non-exempt violation of any substantially
similar law).

               The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Noteholders under the Indenture at any time by the Issuer
with the consent of the Majority in Interest of the Notes. The Indenture also
contains provisions permitting the Noteholders representing specified
percentages of the Outstanding Amount of the Notes, on behalf of the
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain defaults under the Indenture and their consequences. Any
such consent or waiver by the Noteholders shall be conclusive and binding upon
such Holders and upon all future Holders of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this or such Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Noteholders.

               The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

               This
Note and the Indenture shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

               No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed.

A-2-5

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

	
 

	
 

	
 

	
 

	
Date:
  November 22, 2006

	
CIT EQUIPMENT
  COLLATERAL 2006-VT2

	
 

	
 

	
 

	
 

	
 

	
By:

	
THE BANK OF
  NEW YORK
(DELAWARE) not in its individual capacity but solely on behalf of
  the Issuer as Owner Trustee under the Trust Agreement

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	

A-2-6

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

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

	
 

	
 

	
 

	
 

	
 

	
DEUTSCHE
  BANK TRUST COMPANY
AMERICAS, not in its individual capacity but solely as
  Indenture Trustee

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Authorized Signatory

A-2-7

FORM OF NOTE ASSIGNMENT

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

	
 

	
PLEASE
  INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
 

	

	
(Please
  print or type name and address, including postal zip code, of assignee)

	
 

	

	
the within
  Note, and all rights thereunder, hereby irrevocably constituting and
  appointing

	
 

	

	
to transfer
  said Note on the books kept for registration thereof, with full power of
  substitution in the premises.

	
 

	
 

	
 

	
Dated:

	
 

	
 

	
 

	

	
 

Signature
Guaranteed:

	
 

	
 

	
 

	

	
 

	

	
Signature
  must be guaranteed by an eligible guarantor institution which is a
  participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
  similar signature guarantee program

	
 

	
Notice: The
  signature(s) on this assignment must correspond with the name(s) as it
  appears on the face of the within Note in every particular, without
  alteration or enlargement or any change whatsoever

	
 

	
 

	
 

	

	
 

	

	
(Authorized
  Officer)

	
 

	
 

A-2-8

EXHIBIT A-3

FORM OF CLASS A-3 NOTE

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.

               THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

               THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE SET FORTH HEREIN AND MAY
BE PREPAID TO THE EXTENT OF FUNDS AVAILABLE FOR SUCH PURPOSE ON EACH PAYMENT
DATE. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

CIT EQUIPMENT COLLATERAL 2006-VT2

5.07% CLASS A-3 RECEIVABLE-BACKED NOTES

	
   

  	
   

  
	
  REGISTERED

  	
  $[______]

  
	
   

  	
   

  
	
  No. A-3-1

  	
  CUSIP NO. [______]

  

               THIS
NOTE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN CIT FUNDING COMPANY,
LLC, CIT FINANCIAL USA, INC., CIT GROUP INC. OR ANY AFFILIATE THEREOF.

               CIT
Equipment Collateral 2006-VT2, a statutory trust organized and existing under
the laws of the State of Delaware (herein referred to as the “Issuer”), for
value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of [______] Dollars ($[________]) payable on the
earlier of February 22, 2010, (the “Class A-3 Maturity Date”) and the
Redemption Date, if any, pursuant to the Indenture referred to herein below.

               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 the
Indenture. Interest on this Note will accrue for each Payment Date from the

A-3-1

most recent Payment Date on which interest has been paid to but excluding such
Payment Date or, if no interest has yet been paid, from the Closing Date.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months. Such principal of and interest on this Note shall be paid in the manner
specified herein below.

               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.

               The
Payment of interest and principal on the Class A-3 Notes is subject to certain
prior payment rights of the Holders of Class A-1 Notes and Class A-2 Notes, as
set forth in the Indenture.

               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 herein below, or be
valid or obligatory for any purpose.

A-3-2

               This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its 5.07% Class A-3 Receivable-Backed Notes (the “Class A-3 Notes”), all issued
under an Indenture, dated as of October 1, 2006 (the “Indenture”), between the
Issuer and Deutsche Bank Trust Company Americas, as Indenture Trustee (the
“Indenture Trustee”), 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 Class A-3 Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the Indenture,
as so supplemented or amended. All terms used in this Note that are defined in
the Pooling and Servicing Agreement dated as of October 1, 2006 by and among
CIT Funding Company, LLC, CIT Financial USA, Inc., and the Issuer (the “Pooling
and Servicing Agreement”) shall have the meanings assigned to them therein.

               The
Class A-3 Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
Collateral pledged as security therefor as provided in the Indenture, subject
to the priorities of allocations as to interest and principal payments as
described therein and in the Pooling and Servicing Agreement.

               Principal
of the Class A-3 Notes will be payable on the earlier of the Class A-3 Maturity
Date and the Redemption Date, if any, pursuant to the Indenture.
Notwithstanding the foregoing, the entire unpaid principal amount of the Class
A-3 Notes shall be due and payable as and to the extent provided in the
Indenture if an Event of Default shall have occurred and be continuing, unless
the Required Holders have waived such Event of Default.

               Payments
of interest on this Note due and payable on each Payment Date shall be made by
check mailed to the Person whose name appears as the Registered Holder of this
Note on the Note Register as of the close of business on each Record Date
immediately preceding the related Payment Date, except that with respect to
Notes registered on the applicable Record Date in the name of a nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of
the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note
affected by any payments made on any Payment Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon or thereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Payment Date, then the Indenture Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Registered Holder
hereof as of the Record Date preceding such Payment Date by notice mailed
within five (5) Business Days of such Payment Date and the amount then due and
payable shall be payable only upon presentation and surrender of this Note at
the Corporate Trust Office of the Indenture Trustee or at the office of the
Indenture Trustee’s agent appointed for such purposes located in New York City.

               As
provided in the Indenture, the Notes may be redeemed pursuant to the Indenture,
in whole, but not in part, at the option of the Servicer, on the Payment Date
on or after

A-3-3

the date on which the Aggregate Principal Amount of the Notes
outstanding is less than 10% of the Initial Contract Pool Principal Balance.

               As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new Class A-3 Notes of
authorized denominations and in the same Aggregate Principal Amount will be
issued to the designated transferee or transferees (and, if applicable, such
Holder). No service charge will be charged for any registration of transfer or
exchange of this Note, but the transferor may be required to pay a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any such registration of transfer or exchange.

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the
Indenture Trustee on the Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Indenture
Trustee or the Owner Trustee in their individual capacities, (ii) any owner of
a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Indenture Trustee or the Owner
Trustee in their individual capacities, the Issuer or any successor or assign
of the Indenture Trustee or the Owner Trustee in their individual capacities or
the Issuer, 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 capacities) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against CFUSA, the
Depositor or the Issuer, or join in any institution against CFUSA, the
Depositor or the Issuer, of any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law.

               The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness which is solely
secured by the Collateral and that the Trust will be disregarded as a separate
entity for federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3 (b)(1)(ii). Each Noteholder, by acceptance of a Note or of a
beneficial interest in a Note, agrees to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness.

A-3-4

               Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer and the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note may be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary.

               By
purchasing this Note, the holder is deemed to represent that the acquisition
and holding of this Note will not constitute a prohibited transaction in
violation of Section 406 of ERISA or Section 4975 of the Code which is not
covered by (i) prohibited transaction class exemption (“PTCE”) 84-14, PTCE
90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, (ii) the statutory exemption that may
be available under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the
Code to a party in interest that is a service provider to a plan investing in
the Notes for adequate consideration (as determined in good faith by the plan
fiduciary pursuant to regulations that, as of the date of the Indenture, are to
be promulgated by the U.S. Department of Labor), provided such service provider
is not (A) the fiduciary with respect to the plan’s assets used to acquire the
notes or an affiliate of such fiduciary or (B) an affiliate of the employer
sponsoring the plan or (iii) some other applicable class or individual
exemption (or, in the case of a governmental or church plan, any similar
federal, state or local law, does not cause a non-exempt violation of any
substantially similar law).

               The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Noteholders under the Indenture at any time by the Issuer
with the consent of the Majority in Interest of the Notes. The Indenture also
contains provisions permitting the Noteholders representing specified
percentages of the Outstanding Amount of the Notes, on behalf of the
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain defaults under the Indenture and their consequences. Any
such consent or waiver by the Noteholders shall be conclusive and binding upon
such Holders and upon all future Holders of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this or such Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Noteholders.

               The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

               This
Note and the Indenture shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

               No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed.

A-3-5

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

	
 

	
 

	
 

	
 

	
  Date:
  November 22, 2006

  	
  CIT
  EQUIPMENT COLLATERAL 2006-VT2

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF
  NEW YORK 
(DELAWARE), not in its individual capacity but solely on behalf of
  the Issuer as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
  

  

A-3-6

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

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

	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY
AMERICAS, not in its individual capacity but solely as
  Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Authorized Signatory

  

A-3-7

FORM OF NOTE ASSIGNMENT

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

PLEASE INSERT
SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
   

  
	
  

  
	
  (Please print or type name and address, including postal zip code, of
  assignee)

  
	
   

  
	
  

  
	
  the within Note, and all rights thereunder, hereby irrevocably
  constituting and appointing

  
	
   

  
	
  

  
	
  to transfer said Note on the books kept for registration thereof,
  with full power of substitution in the premises.

  

	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
  

  
	
   

  	
   

  
	
  Signature
  Guaranteed:

  

	
   

  	
   

  	
   

  
	
  

  	
   

  	
  

  
	
  Signature
  must be guaranteed by an eligible guarantor institution which is a
  participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
  similar signature guarantee program

  	
   

  	
  Notice: The
  signature(s) on this assignment must correspond with the name(s) as it
  appears on the face of the within Note in every particular, without
  alteration or enlargement or any change whatsoever

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  
	
  (Authorized
  Officer)

  	
   

  	
   

  

A-3-8

EXHIBIT A-4 

FORM OF CLASS A-4 NOTE

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. 

               THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES. 

               THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE SET FORTH HEREIN AND MAY
BE PREPAID TO THE EXTENT OF FUNDS AVAILABLE FOR SUCH PURPOSE ON EACH PAYMENT
DATE. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 

CIT EQUIPMENT COLLATERAL 2006-VT2

5.05% CLASS A-4 RECEIVABLE-BACKED NOTES

	
 

	
 

	
REGISTERED

	
$[______] 

	
No. A-4-1

	
CUSIP NO. [______] 

               THIS
NOTE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN CIT FUNDING COMPANY,
LLC, CIT FINANCIAL USA, INC., CIT GROUP INC. OR ANY AFFILIATE THEREOF. 

               CIT
Equipment Collateral 2006-VT2, a statutory trust organized and existing under
the laws of the State of Delaware (herein referred to as the “Issuer”), for
value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of [______] Dollars ($[________]) payable on the
earlier of April 21, 2014 (the “Class A-4 Maturity Date”) and the Redemption
Date, if any, pursuant to the Indenture referred to herein below. 

               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 the
Indenture. Interest on this Note will accrue for each Payment Date from the 

A-4-1

most recent
Payment Date on which interest has been paid to but excluding such Payment Date
or, if no interest has yet been paid, from the Closing Date. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. Such principal
of and interest on this Note shall be paid in the manner specified herein
below. 

               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. 

               The
Payment of interest and principal on the Class A-4 Notes is subject to certain
prior payment rights of the Holders of Class A-1 Notes, Class A-2 Notes and
Class A-3 Notes, as set forth in the Indenture. 

               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 herein below, or be
valid or obligatory for any purpose. 

A-4-2

               This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its 5.05% Class A-4 Receivable-Backed Notes (the “Class A-4 Notes”), all issued
under an Indenture, dated as of October 1, 2006 (the “Indenture”), between the
Issuer and Deutsche Bank Trust Company Americas, as Indenture Trustee (the
“Indenture Trustee”), 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 Class A-4 Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended. All terms used in this Note that are
defined in the Pooling and Servicing Agreement dated as of October 1, 2006 by
and among CIT Funding Company, LLC, CIT Financial USA, Inc., and the Issuer
(the “Pooling and Servicing Agreement”) shall have the meanings assigned to
them therein. 

               The
Class A-4 Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
Collateral pledged as security therefor as provided in the Indenture, subject
to the priorities of allocations as to interest and principal payments as
described therein and in the Pooling and Servicing Agreement. 

               Principal
of the Class A-4 Notes will be payable on the earlier of the Class A-4 Maturity
Date and the Redemption Date, if any, pursuant to the Indenture.
Notwithstanding the foregoing, the entire unpaid principal amount of the Class
A-4 Notes shall be due and payable as and to the extent provided in the
Indenture if an Event of Default shall have occurred and be continuing, unless
the Required Holders have waived such Event of Default. 

               Payments
of interest on this Note due and payable on each Payment Date shall be made by
check mailed to the Person whose name appears as the Registered Holder of this
Note on the Note Register as of the close of business on each Record Date
immediately preceding the related Payment Date, except that with respect to
Notes registered on the applicable Record Date in the name of a nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of
the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note affected
by any payments made on any Payment Date shall be binding upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon or
thereon. If funds are expected to be available, as provided in the Indenture,
for payment in full of the then remaining unpaid principal amount of this Note
on a Payment Date, then the Indenture Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Registered Holder hereof as of
the Record Date preceding such Payment Date by notice mailed within five (5)
Business Days of such Payment Date and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Corporate
Trust Office of the Indenture Trustee or at the office of the Indenture
Trustee’s agent appointed for such purposes located in New York City. 

               As
provided in the Indenture, the Notes may be redeemed pursuant to the Indenture,
in whole, but not in part, at the option of the Servicer, on the Payment Date
on or after 

A-4-3

the date on
which the Aggregate Principal Amount of the Notes outstanding is less than 10%
of the Initial Contract Pool Principal Balance. 

               As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new Class A-4 Notes of authorized
denominations and in the same Aggregate Principal Amount will be issued to the
designated transferee or transferees (and, if applicable, such Holder). No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange. 

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the
Indenture Trustee on the Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Indenture
Trustee or the Owner Trustee in their individual capacities, (ii) any owner of
a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Indenture Trustee or the Owner
Trustee in their individual capacities, the Issuer or any successor or assign
of the Indenture Trustee or the Owner Trustee in their individual capacities or
the Issuer, 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 capacities) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity. 

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against CFUSA, the
Depositor or the Issuer, or join in any institution against CFUSA, the
Depositor or the Issuer, of any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or state bankruptcy
or similar law. 

               The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness which is solely
secured by the Collateral and that the Trust will be disregarded as a separate
entity for federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3 (b)(1)(ii). Each Noteholder, by acceptance of a Note or of a
beneficial interest in a Note, agrees to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness. 

A-4-4

               Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer and the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note may be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary. 

               By
purchasing this Note, the holder is deemed to represent that the acquisition
and holding of this Note will not constitute a prohibited transaction in
violation of Section 406 of ERISA or Section 4975 of the Code which is not
covered by (i) prohibited transaction class exemption (“PTCE”) 84-14, PTCE
90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, (ii) the statutory exemption that may
be available under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the
Code to a party in interest that is a service provider to a plan investing in
the Notes for adequate consideration (as determined in good faith by the plan
fiduciary pursuant to regulations that, as of the date of the Indenture, are to
be promulgated by the U.S. Department of Labor), provided such service provider
is not (A) the fiduciary with respect to the plan’s assets used to acquire the
notes or an affiliate of such fiduciary or (B) an affiliate of the employer
sponsoring the plan or (iii) some other applicable class or individual
exemption (or, in the case of a governmental or church plan, any similar
federal, state or local law, does not cause a non-exempt violation of any
substantially similar law). 

               The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Noteholders under the Indenture at any time by the Issuer
with the consent of the Majority in Interest of the Notes. The Indenture also
contains provisions permitting the Noteholders representing specified
percentages of the Outstanding Amount of the Notes, on behalf of the
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain defaults under the Indenture and their consequences. Any
such consent or waiver by the Noteholders shall be conclusive and binding upon
such Holders and upon all future Holders of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this or such Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Noteholders. 

               The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth. 

               This
Note and the Indenture shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws. 

               No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed. 

A-4-5

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

	
 

	
 

	
 

	
 

	
Date:
  November 22, 2006

	
CIT
  EQUIPMENT COLLATERAL 2006-VT2 

	
 

	
 

	
 

	
By:

	
THE BANK OF
  NEW YORK 
(DELAWARE), not in its individual capacity but solely on behalf of
  the Issuer as Owner Trustee under the Trust Agreement

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	

A-4-6

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

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

	
 

	
 

	
 

	
 

	
DEUTSCHE
  BANK TRUST COMPANY 
AMERICAS, not in its individual capacity but solely as
  Indenture Trustee 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

A-4-7

FORM OF NOTE ASSIGNMENT

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

PLEASE INSERT
SOCIAL SECURITY OR 

OTHER IDENTIFYING NUMBER OF ASSIGNEE 

	
 

	

	
(Please print or type name and address, including postal zip code, of
  assignee)

	
 

	

	
the within Note, and all rights thereunder, hereby irrevocably
  constituting and appointing

	
 

	

	
to transfer said Note on the books kept for registration thereof,
  with full power of substitution in the premises.

	
Dated:

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Signature
  Guaranteed:

	
 

	

	
 

	

	
Signature
  must be guaranteed by an eligible guarantor institution which is a
  participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
  similar signature guarantee program 

	
 

	
Notice: The
  signature(s) on this assignment must correspond with the name(s) as it
  appears on the face of the within Note in every particular, without alteration
  or enlargement or any change whatsoever

	
 

	

	
 

	
 

	
(Authorized
  Officer)

	
 

	
 

A-4-8

EXHIBIT B 

FORM OF CLASS B NOTE

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. 

               THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES. 

               THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE SET FORTH HEREIN AND MAY
BE PREPAID TO THE EXTENT OF FUNDS AVAILABLE FOR SUCH PURPOSE ON EACH PAYMENT
DATE. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 

CIT EQUIPMENT COLLATERAL 2006-VT2

5.24% CLASS B RECEIVABLE-BACKED NOTES

	
 

	
 

	
REGISTERED

	
$[______]

	
 

	
No. B-1-1

	
CUSIP NO. [______]

               THIS
NOTE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN CIT FUNDING COMPANY,
LLC, CIT FINANCIAL USA, INC., CIT GROUP INC. OR ANY AFFILIATE THEREOF. 

               CIT
Equipment Collateral 2006-VT2, a statutory trust organized and existing under
the laws of the State of Delaware (herein referred to as the “Issuer”), for
value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of [______] Dollars ($[________]) payable on the
earlier of April 21, 2014 (the “Class B Maturity Date”) and the Redemption
Date, if any, pursuant to the Indenture referred to herein below. 

               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 the
Indenture. Interest on this Note will accrue for each Payment Date from the 

B-1

most recent
Payment Date on which interest has been paid to but excluding such Payment Date
or, if no interest has yet been paid, from the Closing Date. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. Such principal
of and interest on this Note shall be paid in the manner specified herein
below. 

               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. 

               The
payment of interest and principal on the Class B Notes is subject to certain
prior payment rights of the Holders of Class A Notes, as set forth in the
Indenture. 

               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 herein below, or be
valid or obligatory for any purpose. 

B-2

               This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its 5.24% Class B Receivable-Backed Notes (the “Class B Notes”), all issued
under an Indenture, dated as of October 1, 2006 (the “Indenture”), between the
Issuer and Deutsche Bank Trust Company Americas, as Indenture Trustee (the
“Indenture Trustee”), 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 Class B Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended. All terms used in this Note that are
defined in the Pooling and Servicing Agreement dated as of October 1, 2006 by
and among CIT Funding Company, LLC, CIT Financial USA, Inc., and the Issuer
(the “Pooling and Servicing Agreement”) shall have the meanings assigned to
them therein. 

               The
Class B Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
Collateral pledged as security therefor as provided in the Indenture, subject
to the priorities of allocations as to interest and principal payments as
described therein and in the Pooling and Servicing Agreement. 

               Principal
of the Class B Notes will be payable on the earlier of the Class B Maturity
Date and the Redemption Date, if any, pursuant to the Indenture.
Notwithstanding the foregoing, the entire unpaid principal amount of the Class
B Notes shall be due and payable as and to the extent provided in the Indenture
if an Event of Default shall have occurred and be continuing, unless the
Required Holders have waived such Event of Default. 

               Payments
of interest on this Note due and payable on each Payment Date shall be made by
check mailed to the Person whose name appears as the Registered Holder of this
Note on the Note Register as of the close of business on each Record Date
immediately preceding the related Payment Date, except that with respect to
Notes registered on the applicable Record Date in the name of a nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of
the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note
affected by any payments made on any Payment Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon or thereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Payment Date, then the Indenture Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Registered Holder
hereof as of the Record Date preceding such Payment Date by notice mailed
within five (5) Business Days of such Payment Date and the amount then due and
payable shall be payable only upon presentation and surrender of this Note at
the Corporate Trust Office of the Indenture Trustee or at the office of the
Indenture Trustee’s agent appointed for such purposes located in New York City.

               As
provided in the Indenture, the Notes may be redeemed pursuant to the Indenture,
in whole, but not in part, at the option of the Servicer, on the Payment Date
on or after 

B-3

the date on
which the Aggregate Principal Amount of the Notes outstanding is less than 10%
of the Initial Contract Pool Principal Balance. 

               As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new Class B Notes of authorized
denominations and in the same Aggregate Principal Amount will be issued to the
designated transferee or transferees (and, if applicable, such Holder). No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange. 

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that no recourse maybe taken, directly or indirectly, with
respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Indenture Trustee or the
Owner Trustee in their individual capacities, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee in
their individual capacities, the Issuer or any successor or assign of the
Indenture Trustee or the Owner Trustee in their individual capacities or the
Issuer, 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 capacities) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity. 

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against CFUSA, the
Depositor or the Issuer, or join in any institution against CFUSA, the
Depositor or the Issuer, of any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law. 

               The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness which is solely
secured by the Collateral and that the Trust will be disregarded as a separate
entity for federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3 (b)(1)(ii). Each Noteholder, by acceptance of a Note or of a
beneficial interest in a Note, agrees to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness. 

B-4

               Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer and the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note may be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary. 

               By
purchasing this Note, the holder is deemed to represent that the acquisition
and holding of this Note will not constitute a prohibited transaction in
violation of Section 406 of ERISA or Section 4975 of the Code which is not
covered by (i) prohibited transaction class exemption (“PTCE”) 84-14, PTCE
90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, (ii) the statutory exemption that may
be available under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the
Code to a party in interest that is a service provider to a plan investing in
the Notes for adequate consideration (as determined in good faith by the plan
fiduciary pursuant to regulations that, as of the date of the Indenture, are to
be promulgated by the U.S. Department of Labor), provided such service provider
is not (A) the fiduciary with respect to the plan’s assets used to acquire the
notes or an affiliate of such fiduciary or (B) an affiliate of the employer
sponsoring the plan or (iii) some other applicable class or individual
exemption (or, in the case of a governmental or church plan, any similar
federal, state or local law, does not cause a non-exempt violation of any
substantially similar law). 

               The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Noteholders under the Indenture at any time by the Issuer
with the consent of the Majority in Interest of the Notes. The Indenture also
contains provisions permitting the Noteholders representing specified
percentages of the Outstanding Amount of the Notes, on behalf of the
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain defaults under the Indenture and their consequences. Any
such consent or waiver by the Noteholders shall be conclusive and binding upon
such Holders and upon all future Holders of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this or such Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Noteholders. 

               The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth. 

               This
Note and the Indenture shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws. 

               No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed. 

B-5

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

	
 

	
 

	
 

	
 

	
Date:
  November 22, 2006

	
CIT
  EQUIPMENT COLLATERAL 2006-VT2 

	
 

	
 

	
 

	
By:

	
THE BANK OF
  NEW YORK 
(DELAWARE), not in its individual capacity but solely on behalf of
  the Issuer as Owner Trustee under the Trust Agreement 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	

B-6

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

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

	
 

	
 

	
 

	
 

	
DEUTSCHE
  BANK TRUST COMPANY
AMERICAS, not in its individual capacity but solely as
  Indenture Trustee 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

B-7

FORM OF NOTE ASSIGNMENT

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

PLEASE INSERT
SOCIAL SECURITY OR 

OTHER IDENTIFYING NUMBER OF ASSIGNEE 

	
 

	

	
(Please print or type name and address, including postal zip code, of
  assignee)

	
 

	

	
the within Note, and all rights thereunder, hereby irrevocably
  constituting and appointing

	
 

	

	
to transfer said Note on the books kept for registration thereof,
  with full power of substitution in the premises.

	
 

	
 

	
 

	
Dated:

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Signature
  Guaranteed: 

	
 

	
 

	
 

	

	
 

	

	
Signature
  must be guaranteed by an eligible guarantor institution which is a
  participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
  similar signature guarantee program

	
 

	
Notice: The
  signature(s) on this assignment must correspond with the name(s) as it
  appears on the face of the within Note in every particular, without
  alteration or enlargement or any change whatsoever

	
 

	

	
 

	
 

	
(Authorized
  Officer)

	
 

	
 

B-8

EXHIBIT C

FORM OF CLASS C NOTE

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.

               THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

               THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE SET FORTH HEREIN AND MAY
BE PREPAID TO THE EXTENT OF FUNDS AVAILABLE FOR SUCH PURPOSE ON EACH PAYMENT
DATE. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

CIT EQUIPMENT COLLATERAL 2006-VT2

5.29% CLASS C RECEIVABLE-BACKED NOTES

	
 

	
 

	
REGISTERED

	
$[________]

	
 

	
 

	
No. C-1-1

	
CUSIP NO. [________]

               THIS
NOTE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN CIT FUNDING COMPANY,
LLC, CIT FINANCIAL USA, INC., CIT GROUP INC. OR ANY AFFILIATE THEREOF.

               CIT
Equipment Collateral 2006-VT2, a statutory trust organized and existing under
the laws of the State of Delaware (herein referred to as the “Issuer”), for
value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of [______] Dollars ($[________]) payable on the
earlier of April 21, 2014 (the “Class C Maturity Date”) and the Redemption
Date, if any, pursuant to the Indenture referred to herein below.

               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 the
Indenture. Interest on this Note will accrue for each Payment Date from the

C-1

most recent
Payment Date on which interest has been paid to but excluding such Payment Date
or, if no interest has yet been paid, from the Closing Date. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. Such principal
of and interest on this Note shall be paid in the manner specified herein
below.

               The
payment of interest and principal on the Class C Notes is subject to certain
prior payment rights of the Holders of Class A Notes and Class B Notes, as set
forth 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.

               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 herein below, or be
valid or obligatory for any purpose.

C-2

               This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its 5.29% Class C Receivable-Backed Notes (the “Class C Notes”), all issued
under an Indenture, dated as of October 1, 2006 (the “Indenture”), between the
Issuer and Deutsche Bank Trust Company Americas, as Indenture Trustee (the
“Indenture Trustee”), 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 Class C Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended. All terms used in this Note that are
defined in the Pooling and Servicing Agreement dated as of October 1, 2006 by
and among CIT Funding Company, LLC, CIT Financial USA, Inc., and the Issuer
(the “Pooling and Servicing Agreement”) shall have the meanings assigned to
them therein.

               The
Class C Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
Collateral pledged as security therefor as provided in the Indenture, subject
to the priorities of allocations as to interest and principal payments as
described therein and in the Pooling and Servicing Agreement.

               Principal
of the Class C Notes will be payable on the earlier of the Class C Maturity
Date and the Redemption Date, if any, pursuant the Indenture. Notwithstanding
the foregoing, the entire unpaid principal amount of the Class C Notes shall be
due and payable as and to the extent provided in the Indenture if an Event of
Default shall have occurred and be continuing, unless the Required Holders have
waived such Event of Default.

               Payments
of interest on this Note due and payable on each Payment Date shall be made by
check mailed to the Person whose name appears as the Registered Holder of this
Note on the Note Register as of the close of business on each Record Date
immediately preceding the related Payment Date, except that with respect to
Notes registered on the applicable Record Date in the name of a nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of
the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note
affected by any payments made on any Payment Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon or thereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Payment Date, then the Indenture Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Registered Holder
hereof as of the Record Date preceding such Payment Date by notice mailed
within five (5) Business Days of such Payment Date and the amount then due and
payable shall be payable only upon presentation and surrender of this Note at
the Corporate Trust Office of the Indenture Trustee or at the office of the
Indenture Trustee’s agent appointed for such purposes located in New York City.

               As
provided in the Indenture, the Notes may be redeemed pursuant to the Indenture,
in whole, but not in part, at the option of the Servicer, on the Payment Date
on or after

C-3

the date on
which the Aggregate Principal Amount of the Notes outstanding is less than 10%
of the Initial Contract Pool Principal Balance.

               As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new Class C Notes of authorized
denominations and in the same Aggregate Principal Amount will be issued to the
designated transferee or transferees (and, if applicable, such Holder). No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the
Indenture Trustee on the Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Indenture
Trustee or the Owner Trustee in their individual capacities, (ii) any owner of
a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Indenture Trustee or the Owner
Trustee in their individual capacities, the Issuer or any successor or assign
of the Indenture Trustee or the Owner Trustee in their individual capacities or
the Issuer, 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 capacities) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against CFUSA, the
Depositor or the Issuer, or join in any institution against CFUSA, the
Depositor or the Issuer, of any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law.

               The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness which is solely
secured by the Collateral and that the Trust will be disregarded as a separate
entity for federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3 (b)(1)(ii). Each Noteholder, by acceptance of a Note or of a beneficial
interest in a Note, agrees to treat the Notes for federal, state and local
income, single business and franchise tax purposes as indebtedness.

C-4

               Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer and the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note may be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary.

               By
purchasing this Note, the holder is deemed to represent that the acquisition
and holding of this Note will not constitute a prohibited transaction in
violation of Section 406 of ERISA or Section 4975 of the Code which is not
covered by (i) prohibited transaction class exemption (“PTCE”) 84-14, PTCE
90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, (ii) the statutory exemption that may
be available under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the
Code to a party in interest that is a service provider to a plan investing in
the Notes for adequate consideration (as determined in good faith by the plan
fiduciary pursuant to regulations that, as of the date of the Indenture, are to
be promulgated by the U.S. Department of Labor), provided such service provider
is not (A) the fiduciary with respect to the plan’s assets used to acquire the
notes or an affiliate of such fiduciary or (B) an affiliate of the employer
sponsoring the plan or (iii) some other applicable class or individual
exemption (or, in the case of a governmental or church plan, any similar
federal, state or local law, does not cause a non-exempt violation of any
substantially similar law).

               The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Noteholders under the Indenture at any time by the Issuer
with the consent of the Majority in Interest of the Notes. The Indenture also
contains provisions permitting the Noteholders representing specified
percentages of the Outstanding Amount of the Notes, on behalf of the
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain defaults under the Indenture and their consequences. Any
such consent or waiver by the Noteholders shall be conclusive and binding upon
such Holders and upon all future Holders of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this or such Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Noteholders.

               The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

               This
Note and the Indenture shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

               No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed.

C-5

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

	
 

	
 

	
 

	
 

	
Date:
  November 22, 2006

	
CIT
  EQUIPMENT COLLATERAL 2006-VT2

	
 

	
 

	
 

	
 

	
By:

	
THE BANK OF
  NEW YORK

  (DELAWARE), not in its individual

  capacity but solely on behalf of the Issuer

  as Owner Trustee under the Trust Agreement

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	

C-6

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
 

	
 

	
 

	
 

	
DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS, not in its individual capacity but solely as Indenture Trustee

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

C-7

FORM OF NOTE ASSIGNMENT

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

	
 

	
PLEASE
  INSERT SOCIAL SECURITY OR

	
OTHER
  IDENTIFYING NUMBER OF ASSIGNEE

	
 

	

	
(Please print or type name and address, including postal zip code, of
  assignee)

	
 

	

	
the within
  Note, and all rights thereunder, hereby irrevocably constituting and
  appointing

	
 

	

	
to transfer
  said Note on the books kept for registration thereof, with full power of
  substitution in the premises.

	
 

	
 

	
 

	
Dated:

	
 

	
 

	
 

	

	
 

Signature
Guaranteed:

	
 

	
 

	
 

	

	
 

	

	
Signature
  must be guaranteed by an eligible guarantor institution which is a
  participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
  similar signature guarantee program

	
 

	
Notice: The
  signature(s) on this assignment must correspond with the name(s) as it
  appears on the face of the within Note in every particular, without
  alteration or enlargement or any change whatsoever

	
 

	
 

	
 

	

	
 

	
 

	
(Authorized
  Officer)

	
 

	
 

C-8

EXHIBIT D

FORM OF CLASS D NOTE

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.

               THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

               THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN FULL ON THE DATE SET FORTH HEREIN AND MAY
BE PREPAID TO THE EXTENT OF FUNDS AVAILABLE FOR SUCH PURPOSE ON EACH PAYMENT
DATE. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

CIT EQUIPMENT COLLATERAL 2006-VT2

5.46% CLASS D RECEIVABLE-BACKED NOTES

	
 

	
 

	
REGISTERED

	
$[______]

	
 

	
 

	
No. D-1-1

	
CUSIP NO. [______]

               THIS
NOTE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN CIT FUNDING COMPANY,
LLC, CIT FINANCIAL USA, INC., CIT GROUP INC. OR ANY AFFILIATE THEREOF.

               CIT
Equipment Collateral 2006-VT2, a statutory trust organized and existing under
the laws of the State of Delaware (herein referred to as the “Issuer”), for
value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of [______] Dollars ($[________]) payable on the
earlier of April 21, 2014 (the “Class D Maturity Date”) and the Redemption
Date, if any, pursuant to the Indenture referred to herein below.

               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 the
Indenture. Interest on this Note will accrue for each Payment Date from the

D-1

most recent
Payment Date on which interest has been paid to but excluding such Payment Date
or, if no interest has yet been paid, from the Closing Date. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. Such principal
of and interest on this Note shall be paid in the manner specified herein
below.

               The
payment of interest and principal on the Class D Notes is subject to certain
prior payment rights of the Holders of Class A Notes, Class B Notes and Class C
Notes, as set forth 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.

               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 herein below, or be
valid or obligatory for any purpose.

D-2

               This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its 5.46% Class D Receivable-Backed Notes (the “Class D Notes”), all issued
under an Indenture, dated as of October 1, 2006 (the “Indenture”), between the
Issuer and Deutsche Bank Trust Company Americas, as Indenture Trustee (the
“Indenture Trustee”), 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 Class D Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended. All terms used in this Note that are
defined in the Pooling and Servicing Agreement dated as of October 1, 2006 by
and among CIT Funding Company, LLC, CIT Financial USA, Inc., and the Issuer
(the “Pooling and Servicing Agreement”) shall have the meanings assigned to
them therein.

               The
Class D Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
Collateral pledged as security therefor as provided in the Indenture, subject
to the priorities of allocations as to interest and principal payments as
described therein and in the Pooling and Servicing Agreement.

               Principal
of the Class D Notes will be payable on the earlier of the Class D Maturity
Date and the Redemption Date, if any, pursuant to the Indenture.
Notwithstanding the foregoing, the entire unpaid principal amount of the Class
D Notes shall be due and payable as and to the extent provided in the Indenture
if an Event of Default shall have occurred and be continuing, unless the
Required Holders have waived such Event of Default.

               Payments
of interest on this Note due and payable on each Payment Date shall be made by
check mailed to the Person whose name appears as the Registered Holder of this
Note on the Note Register as of the close of business on each Record Date
immediately preceding the related Payment Date, except that with respect to
Notes registered on the applicable Record Date in the name of a nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of
the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note
affected by any payments made on any Payment Date shall be binding upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon or thereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Payment Date, then the Indenture Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Registered Holder
hereof as of the Record Date preceding such Payment Date by notice mailed
within five (5) Business Days of such Payment Date and the amount then due and
payable shall be payable only upon presentation and surrender of this Note at
the Corporate Trust Office of the Indenture Trustee or at the office of the
Indenture Trustee’s agent appointed for such purposes located in New York City.

D-3

               As
provided in the Indenture, the Notes may be redeemed pursuant to the Indenture,
in whole, but not in part, at the option of the Servicer, on the Payment Date
on or after the date on which the Aggregate Principal Amount of the Notes
outstanding is less than 10% of the Initial Contract Pool Principal Balance.

               As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new Class D Notes of authorized
denominations and in the same Aggregate Principal Amount will be issued to the
designated transferee or transferees (and, if applicable, such Holder). No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

               Each
Noteholder by acceptance of a Note or a beneficial interest in a Note covenants
and agrees that no recourse may be taken, directly or indirectly, with respect
to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner Trustee
in their individual capacities, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in their individual
capacities, the Issuer or any successor or assign of the Indenture Trustee or
the Owner Trustee in their individual capacities or the Issuer, 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
capacities) and except that any such partner, owner or beneficiary shall be
fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

               Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against CFUSA, the
Depositor or the Issuer, or join in any institution against CFUSA, the
Depositor or the Issuer, of any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law.

               The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness which is solely
secured by the Collateral and that the Trust will be disregarded as a separate
entity for federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3 (b)(1)(ii). Each Noteholder, by acceptance of a Note or of a

D-4

beneficial
interest in a Note, agrees to treat the Notes for federal, state and local
income, single business and franchise tax purposes as indebtedness.

               Prior
to the due presentment for registration of transfer of this Note, the Issuer and
the Indenture Trustee and any agent of the Issuer and the Indenture Trustee may
treat the Person in whose name this Note (as of the day of determination or as
of such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Note may be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary.

               By
purchasing this Note, the holder is deemed to represent that the acquisition and
holding of this Note will not constitute a prohibited transaction in violation
of Section 406 of ERISA or Section 4975 of the Code which is not covered by (i)
prohibited transaction class exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38,
PTCE 95-60, PTCE 96-23, (ii) the statutory exemption that may be available
under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code to a
party in interest that is a service provider to a plan investing in the Notes
for adequate consideration (as determined in good faith by the plan fiduciary
pursuant to regulations that, as of the date of the Indenture, are to be
promulgated by the U.S. Department of Labor), provided such service provider is
not (A) the fiduciary with respect to the plan’s assets used to acquire the
notes or an affiliate of such fiduciary or (B) an affiliate of the employer
sponsoring the plan or (iii) some other applicable class or individual
exemption (or, in the case of a governmental or church plan, any similar
federal, state or local law, does not cause a non-exempt violation of any
substantially similar law).

               The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Noteholders under the Indenture at any time by the Issuer
with the consent of the Majority in Interest of the Notes. The Indenture also
contains provisions permitting the Noteholders representing specified
percentages of the Outstanding Amount of the Notes, on behalf of the
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain defaults under the Indenture and their consequences. Any
such consent or waiver by the Noteholders shall be conclusive and binding upon
such Holders and upon all future Holders of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this or such Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Noteholders.

               The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

               This
Note and the Indenture shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

               No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed.

D-5

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

	
 

	
 

	
 

	
 

	
Date:
  November 22, 2006

	
CIT
  EQUIPMENT COLLATERAL 2006-VT2

	
 

	
 

	
 

	
 

	
By:

	
THE BANK OF
  NEW YORK

  (DELAWARE), not in its individual

  capacity but solely on behalf of the Issuer

  as Owner Trustee under the Trust Agreement

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	

D-6

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

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

	
 

	
 

	
 

	
 

	
DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS, not in its individual capacity but

  solely as Indenture Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Authorized Signatory

D-7

FORM OF NOTE ASSIGNMENT

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

	
 

	
PLEASE
  INSERT SOCIAL SECURITY OR

	
OTHER
  IDENTIFYING NUMBER OF ASSIGNEE

	
 

	

	
(Please print or type name and address, including postal zip code, of
  assignee)

	
 

	

	
the within
  Note, and all rights thereunder, hereby irrevocably constituting and
  appointing

	
 

	

	
to transfer
  said Note on the books kept for registration thereof, with full power of
  substitution in the premises.

	
 

	
 

	
 

	
Dated:

	
 

	
 

	
 

	

	
 

Signature
Guaranteed:

	
 

	
 

	
 

	

	
 

	

	
Signature
  must be guaranteed by an eligible guarantor institution which is a
  participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
  similar signature guarantee program

	
 

	
Notice: The
  signature(s) on this assignment must correspond with the name(s) as it
  appears on the face of the within Note in every particular, without
  alteration or enlargement or any change whatsoever

	
 

	
 

	
 

	

	
 

	
 

	
(Authorized
  Officer)

	
 

	
 

D-8

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