Document:

<PAGE>   1
                                                                   EXHIBIT 10.52

                         RECEIVABLES TRANSFER AGREEMENT

                                  by and among

                     HPSC EQUIPMENT RECEIVABLES 2000-1 LLC I

                                       and

                    HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II

                                   as Issuers,

                                   HPSC, INC.

                                  as Servicer,

                                   HPSC, INC.

                                       and

                     AMERICAN COMMERCIAL FINANCE CORPORATION

                         as Originators and Transferors,

                            HPSC Bravo Funding Corp.

                                       and

                           HPSC Capital Funding, Inc.

                                 as Transferors,

                          Dated as of December 1, 2000

                     HPSC EQUIPMENT RECEIVABLES 2000-1 LLC I
                                       and
                    HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II

                         Equipment Contract Backed Notes

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                                TABLE OF CONTENTS
<TABLE>
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                                                                                            Page
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ARTICLE I.       DEFINITIONS...............................................................   1

   Section 1.01. Definitions...............................................................   1
   Section 1.02. General Interpretive Principles...........................................   1

ARTICLE II.      TRANSFER OF CONVEYED ASSETS...............................................   2

   Section 2.01. Conveyance of Initial Conveyed Assets.....................................   2
   Section 2.02. Conveyance of Subsequent Conveyed Assets..................................   4
   Section 2.03. Subsequent Revolver Transfers.............................................   6
   Section 2.04. Custody of Contract Files.................................................   6

ARTICLE III.     REPRESENTATIONS AND WARRANTIES............................................   6

   Section 3.01. Representations and Warranties............................................   6
   Section 3.02. Representations and Warranties of the Originators with Respect to
                    the Contracts..........................................................  12
   Section 3.03. Substitution of Contracts and Equipment by each of the Originators
                    and the Servicer.......................................................  18
   Section 3.04. Breach of Representations and Warranties; Repurchase of Contracts.........  19

ARTICLE IV.      COVENANTS.................................................................  20

   Section 4.01. Covenants of the Originators..............................................  20
   Section 4.02. Covenants of the Issuers..................................................  24
   Section 4.03. Transfer of Conveyed Assets...............................................  25

ARTICLE V.       CONDITIONS PRECEDENT......................................................  26

   Section 5.01. Conditions to Issuers' Initial Obligations................................  26
   Section 5.02. Conditions to Issuers' Subsequent Obligations.............................  26

ARTICLE VI.      TERMINATION...............................................................  27

   Section 6.01. Termination...............................................................  27

ARTICLE VII.     MISCELLANEOUS PROVISIONS..................................................  28

   Section 7.01. Amendment.................................................................  28
   Section 7.02. GOVERNING LAW.............................................................  28
   Section 7.03. Waiver of Jury Trial......................................................  28
   Section 7.04. Notices...................................................................  28
   Section 7.05. Severability of Provisions................................................  28
   Section 7.06. Assignment................................................................  29
   Section 7.07. Further Assurances........................................................  29
   Section 7.08. No Waiver; Cumulative Remedies............................................  29
   Section 7.09. Counterparts..............................................................  29
   Section 7.10. Binding Effect; Third-Party Beneficiaries.................................  29
   Section 7.11. Merger and Integration....................................................  29
   Section 7.12. Headings..................................................................  29
   Section 7.13. Schedules and Exhibits....................................................  30
</TABLE>

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<TABLE>
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                                                                                            Page
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   Section 7.14. No Bankruptcy Petition Against the Transferors or the Issuers.............  30
   Section 7.15. Limited Recourse to SPV Transferors.......................................  30
</TABLE>

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                         RECEIVABLES TRANSFER AGREEMENT

     THIS RECEIVABLES TRANSFER AGREEMENT (this "Agreement"), dated as of
December 1, 2000, is entered into among HPSC, INC. ("HPSC"), a Delaware
corporation, as servicer (the "Servicer") and as an originator (an
"Originator"), AMERICAN COMMERCIAL FINANCE CORPORATION ("ACFC"), a Delaware
corporation as an originator (an "Originator", and together with HPSC, the
"Originators"), HPSC BRAVO FUNDING CORP. ("Bravo"), a Delaware corporation, as a
"Transferor", HPSC CAPITAL FUNDING, INC. ("Capital" and together with HPSC, ACFC
and Bravo, the "Transferors"), a Delaware corporation, as a "Transferor" and
HPSC EQUIPMENT RECEIVABLES 2000-1 LLC I ("LLC I"), a Delaware limited liability
company and HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II ("LLC II"), a Delaware
limited liability company as issuers (each of LLC I and LLC II, an "Issuer", and
collectively, the "Issuers").

                                   WITNESSETH:

         WHEREAS, each of Bravo and Capital has previously acquired their
respective rights in certain Contracts, Equipment and other Collateral from HPSC
and ACFC under certain existing purchase agreements; and

         WHEREAS, each of the Transferors desires to convey, transfer, sell and
assign all of its right, title and interest in and to the Contracts and all of
its right, title and interest in and to the Equipment and all other Collateral
to LLC I or LLC II, as applicable, upon the terms and conditions hereinafter set
forth; and

         WHEREAS, each of the Originators, the Servicer, each of the Transferors
and each of the Issuers agree that all representations, warranties, covenants
and agreements made by it herein shall be for the benefit of the Noteholders and
the Indenture Trustee.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein, and other good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the parties hereto agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

         Section 1.01. Definitions. Whenever used in this Agreement, capitalized
terms used and not defined herein shall have the meanings set forth in Annex A
hereto.

         Section 1.02. General Interpretive Principles.

         For purposes of this Agreement except as otherwise expressly provided
or unless the context otherwise requires:

         (a) the terms defined in this Agreement have the meanings assigned to
them in this Agreement and include the plural as well as the singular, and the
use of any gender herein shall be deemed to include the other gender;

<PAGE>   5

         (b) accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with GAAP as in effect on the date hereof;

         (c) references herein to "Articles", "Sections", "Subsections",
"Paragraphs" and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subdivisions of
this Agreement;

         (d) a reference to a Subsection without further reference to a Section
is a reference to such Subsection as contained in the same Section in which the
reference appears, and this rule shall also apply to Paragraphs and other
subdivisions;

         (e) the words "herein", "hereof", "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
provision; and

         (f) the term "include" or "including" shall mean without limitation by
reason of enumeration.

                                  ARTICLE II.

                           TRANSFER OF CONVEYED ASSETS

         Section 2.01. Conveyance of Initial Conveyed Assets.

         (a) Each of Bravo and Capital hereby sells, transfers and otherwise
conveys to LLC I all of its right, title and interest in, to and under the
Initial Contracts owned by it on the date hereof and set forth on the List of
Initial Contracts attached hereto as Schedule 1A, and the Initial Conveyed
Assets related thereto, without recourse. Notwithstanding the foregoing, each of
Bravo and Capital retains all rights to monies due under the Contracts prior to
January 1, 2001.

         (b) Each of ACFC, Bravo and Capital hereby sells, transfers and
otherwise conveys to LLC II all of its respective right, title and interest in,
to and under the Initial Contracts owned by it on the date hereof and set forth
on the List of Initial Contracts attached hereto as Schedule 1B and 1C,
respectively, and the Initial Conveyed Assets related thereto, without recourse
(except as set forth herein and, solely in the case of ACFC, in the Indenture).
Notwithstanding the foregoing, each of Bravo and Capital retains all rights to
monies due under the Contracts prior to January 1, 2001.

         (c) The conveyances occurring on the Closing Date, each Subsequent
Transfer Date and each Substitute Transfer Date shall be consummated such that
only Conveyed Assets which constitute Financial Assets may be conveyed to LLC I.
The Conveyed Assets which are conveyed to LLC I and LLC II, respectively, on the
Closing Date, each Subsequent Transfer Date and each Substitute Transfer Date
will be indicated on a List of Contracts delivered to the Indenture Trustee on
such date.

         (d) In connection with such sales and conveyances, each of the
Transferors agrees to record and file financing statements (and thereafter will
file continuation statements with respect to such financing statements) (such
recordation and filing to be at the expense of the

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<PAGE>   6

Servicer) with respect to the related Initial Conveyed Assets sold and to be
transferred to LLC I or LLC II, as applicable, pursuant to this Agreement, the
Subsequent Conveyed Assets to be sold and transferred to LLC I or LLC II
pursuant to any Subsequent Transfer Agreement, and the Substitute Conveyed
Assets, meeting the requirements of applicable state law in such manner and in
such jurisdictions as are necessary to perfect and to maintain the perfection
of, the transfer, conveyance and sale of the related Initial Conveyed Assets,
the related Subsequent Conveyed Assets and the related Substitute Conveyed
Assets (subject to the Filing Requirements with respect to the Equipment) from
each of the Transferors to LLC I or LLC II, as applicable, and the transfer,
assignment and pledge of the Pledged Property from LLC I or LLC II, as
applicable, to the Indenture Trustee on behalf of the Noteholders, pursuant to
the Indenture, and to deliver a file-stamped copy of such financing statements
or other evidence of such filings to the Indenture Trustee within thirty (30)
days of each Conveyance Date. The Contract Files (including each original
executed Contract) will not be physically delivered to the Issuers but instead
will be held by the Custodian for the benefit of the Indenture Trustee.

         (e) In accordance with the Servicing Agreement, including, without
limitation, Section 4.11(d) thereof, the Servicer shall, on or prior to the
related Conveyance Date, and with respect to Substitute Contracts, as soon as
possible, but in no event later than two (2) Business Days after the related
Conveyance Date, (i) cause the Contract Management System to be marked with a
specified code (the "Contract Management Code") to show that the Initial
Conveyed Assets, the Subsequent Conveyed Assets, or the Substitute Conveyed
Assets, as the case may be, have been assigned and transferred to LLC I or LLC
II, as applicable, in accordance with this Agreement, a Subsequent Transfer
Agreement or a Substitute Transfer Agreement, as applicable, and pledged to the
Indenture Trustee on behalf of the Noteholders pursuant to the Indenture and
(ii) prepare and hold in its capacity as Servicer on behalf of the Issuers and
the Indenture Trustee the List of Initial Contracts on or prior to the Closing
Date, a List of Subsequent Contracts on or prior to the related Subsequent
Transfer Date and a List of Substitute Contracts on or prior to the related
Substitute Transfer Date. Pursuant to Section 3.03, each of the Originators or
the Servicer may, from time to time, convey Substitute Contracts to LLC I or LLC
II, as applicable, by delivering a List of Substitute Contracts to the Issuers
and the Indenture Trustee on each Conveyance Date.

         (f) Except for the obligations of each of the Originators and the
Servicer pursuant to the Servicing Agreement and the Indenture with respect to
any breach of a representation or warranty made therein with respect to the
Conveyed Assets, the conveyance of the Conveyed Assets will be without recourse
to the Transferors. Upon each Transferor's transfer of its interest in the
Conveyed Assets to LLC I or LLC II, as applicable, the Transferors will not bear
any further risk with respect to the ultimate collectibility of the Contracts or
the adequacy of the collateral securing the Contracts or the value or
sufficiency of the Equipment.

         (g) It is the intention of the parties hereto that each transfer of the
Conveyed Assets to be made pursuant to the terms hereof shall constitute a sale
and an absolute assignment of such Conveyed Assets by the Transferors to LLC I
or LLC II, as applicable, and not a loan. In the event, however, that a court of
competent jurisdiction were to hold that any such transfer constitutes a loan
and not a sale and an absolute assignment, each of the Transferors hereby grants
to LLC I or LLC II, as applicable, a first priority perfected security interest
in all of each Transferor's respective right, title and interest in, to and
under such Conveyed Assets and all

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income and proceeds thereof, to secure all of such Transferor's obligations
hereunder, and this Agreement shall constitute a security agreement under
applicable law, and in such event, the parties hereto acknowledge that the
Indenture Trustee, in addition to holding the Conveyed Assets for the benefit of
the Noteholders, holds the Conveyed Assets as assignee of LLC I or LLC II, as
applicable, as secured party.

     Section 2.02. Conveyance of Subsequent Conveyed Assets. (a) Subject to the
conditions set forth in paragraph (c) below, on any Subsequent Transfer Date
HPSC shall sell, assign, set over and convey, without recourse, to LLC I and/or
LLC II, and ACFC shall sell, assign, set over and convey, without recourse, to
LLC II, but subject to the other terms and provisions of this Agreement, all of
the right, title and interest of each of HPSC and ACFC, as applicable, in and to
the Subsequent Contracts and the Subsequent Conveyed Assets identified on the
related List of Subsequent Contracts. The transfer by each of HPSC and ACFC, as
applicable, to LLC I and/or LLC II of the Subsequent Contracts and the
Subsequent Conveyed Assets identified on each List of Subsequent Contracts shall
be absolute and is intended by each of HPSC and ACFC and LLC I and/or LLC II to
constitute and to be treated as a sale and an absolute assignment of the
Subsequent Contracts and the Subsequent Conveyed Assets by each of HPSC and
ACFC, as applicable, to LLC I and/or LLC II. Subsequent Transfer Dates shall
occur not more frequently than once during each calendar month.

     In the event such transactions shall be deemed not to be a sale and an
absolute assignment, each of HPSC and ACFC hereby grants to LLC I and/or LLC II
as of each Subsequent Transfer Date a first priority perfected security interest
in all of each of HPSC's and ACFC's right, title and interest in, to and under
each Subsequent Contract and each related Subsequent Conveyed Asset, and all
income and proceeds thereof, to secure all of HPSC's and ACFC's obligations
hereunder, and this Agreement shall constitute a security agreement under
applicable law, and in such event, the parties hereto acknowledge that the
Indenture Trustee, in addition to holding the Subsequent Contracts and the
Subsequent Conveyed Assets for the benefit of the Noteholders, holds the
Subsequent Contracts and the Subsequent Conveyed Assets as assignee of LLC I
and/or LLC II as secured party.

     The ratio of the Outstanding Contract Balance of the Practice Finance
Contracts to the Aggregate Outstanding Contract Balance as of the end of the
Pre-Funding Period shall not exceed such ratio as of the Closing Date.

     The related Contract File for each Subsequent Contract shall be delivered
to the Custodian two Business Days prior to the related Subsequent Transfer
Date.

     (b) The Indenture Trustee, on the related Subsequent Transfer Date, at the
direction of LLC I and/or LLC II, subject to the satisfaction of the conditions
set forth in clause (c) below, shall release to LLC I and/or LLC II from the
Pre-Funding Account an amount equal to the aggregate Discounted Contract Balance
of the Subsequent Contracts (other than Revolving Loans) and the current
Outstanding Revolver Balance of Subsequent Contracts which are Revolving Loans,
so transferred as of the close of the third Business Day prior to the applicable
Subsequent Transfer Date.

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     (c) The Subsequent Transferors shall transfer to LLC I and/or LLC II the
Subsequent Conveyed Assets and LLC I and/or LLC II shall cause to be released
funds from the Pre-Funding Account, only upon satisfaction of each of the
following conditions on or prior to the related Subsequent Transfer Date:

         (i) The Subsequent Transferors shall have delivered to the Indenture
Trustee a duly executed Subsequent Transfer Agreement, substantially in the form
of Exhibit A attached hereto, including a List of Subsequent Contracts attached
thereto, and confirming the satisfaction of each condition precedent specified
in this paragraph (c);

         (ii) As of each Subsequent Transfer Date, as evidenced by delivery of
the Subsequent Transfer Agreement in the form of Exhibit A, none of the
Subsequent Transferors (a) shall be insolvent or have been made insolvent by
such transfers, nor shall they be aware of any pending insolvency, (b) shall
intend to incur or believe that it shall incur debts that would be beyond its
ability to pay as such debts mature, (c) shall make such transfer with actual
intent to hinder, delay or defraud any Person, and (d) shall have assets that
constitute unreasonably small capital to carry out its business as then
conducted;

         (iii) Each such Subsequent Contract must satisfy the representations
and warranties made in Section 3.02 of this Agreement and each Transferor shall
have performed all obligations to be performed by it hereunder on or prior to
such Subsequent Transfer Date;

         (iv) The Subsequent Transferors shall not have selected such Subsequent
Contracts in a manner that they reasonably believe is adverse to the interests
of the Noteholders;

         (v) Such transfer shall not result in a material adverse tax
consequence to either of the Issuers or the Noteholders;

         (vi) The Pre-Funding Period shall not have terminated;

         (vii) The Subsequent Transferors shall have provided the Indenture
Trustee and the Rating Agencies with an Addition Notice not later than three
Business Days prior to such Subsequent Transfer Date and shall have provided any
information reasonably requested by any of them with respect to the related
Subsequent Contracts;

         (viii) The Subsequent Transferors shall have deposited in the
Collection Account all Collections in respect of the related Subsequent
Contracts since the related Subsequent Cut-Off Date;

         (ix) All Financing Statements prepared in accordance with the Filing
Requirements and executed on behalf of each of the Subsequent Transferors, as
appropriate, shall have been delivered to the Indenture Trustee;

         (x) LLC I and/or LLC II shall have received a Custody Receipt with
respect to the Contract Files for the Subsequent Contracts listed on the related
List of Subsequent Contracts; and

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         (xi) Each of the Subsequent Transferors shall have delivered to the
Rating Agencies and the Indenture Trustee "bringdown opinions" to the Opinions
of Counsel regarding bankruptcy, delivered on the Closing Date with respect to
the transfer of such Subsequent Contracts, in form and substance substantially
similar to Exhibit B hereto.

         (xii) In respect of Revolving Loans transferred to LLC II during the
Pre-Funding Period, the Aggregate Outstanding Revolver Balance of such Revolving
Loans, as of the respective Subsequent Transfer Dates on which such Revolving
Loans were transferred to LLC II, shall not exceed $2,000,000.

         (xiii) All necessary consents, including, without limitation, consents
of Triple-A One Funding Corporation and Capital Markets Assurance Corporation.

     Section 2.03. Subsequent Revolver Transfers. (a) In the event that after
the Closing Date ACFC originates Receivables in respect of Revolving Loans then
owned by LLC II, ACFC shall have the right to offer to sell, transfer and convey
such Receivables to LLC II upon one Business Day's prior written notice to LLC
II and the Indenture Trustee, which notice shall set forth the date of such
sale, transfer and conveyance (the "Subsequent Revolver Transfer Date"). On any
Subsequent Revolver Transfer Date, LLC II may, subject to Section 3.09 of the
Indenture, purchase such Receivables from ACFC for a purchase price equal to the
Outstanding Revolver Balance in respect of such Receivables.

     (b) After the termination of the Pre-Funding Period, the Outstanding
Contract Balance of the Revolving Loans shall not exceed 6% of the sum of (i)
the Aggregate Outstanding Contract Balance as of the Initial Cut-Off Date and
(ii) the Original Pre-Funded Amount.

     Section 2.04. Custody of Contract Files. In connection with the sale,
transfer and conveyance of the Contracts (including the Subsequent Contracts) to
LLC I or LLC II, as applicable, pursuant to this Agreement and each Subsequent
Transfer Agreement, the Servicer shall deliver the related Contract Files to the
Custodian; provided, however, that the Servicer may retain copies of the
Contract Files in connection with the performance of its obligations under the
Servicing Agreement.

                                  ARTICLE III.

                         REPRESENTATIONS AND WARRANTIES

     Section 3.01. Representations and Warranties. (a) Each of the Originators
hereby makes the following representations and warranties for the benefit of the
Indenture Trustee, the Noteholders and the Issuers. Such representations and
warranties are made as of each Conveyance Date and shall survive each
assignment, transfer and conveyance by the Transferors of the Conveyed Assets to
LLC I or LLC II, as applicable, and their successors and assigns.

         (i) Organization and Good Standing. Each of the Originators is a
corporation duly organized, validly existing and in good standing, under the
laws of the State of Delaware, with corporate power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is currently conducted;

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<PAGE>   10

         (ii) Due Qualification. Each of the Originators is qualified as a
foreign corporation in any state where it is required to be so qualified to
conduct its business and has obtained all necessary licenses, consents and
approvals as required under federal and state law, in each case, where the
failure to be so qualified, licensed, consented to or approved could reasonably
be expected materially and adversely to affect the ability of each of the
Originators to comply with the terms of this Agreement, any Subsequent Transfer
Agreement or any other Transaction Document to which it is a party;

         (iii) Legal Name. The legal name of HPSC and ACFC, as applicable, is as
set forth in their respective signature lines of this Agreement and neither HPSC
nor ACFC, as applicable, has changed its name since its formation and since such
formation neither HPSC nor ACFC, as applicable, used, or now uses, any trade
names, fictitious names, assumed name or "doing business as" names;

         (iv) Power and Authority. Each of the Originators has the corporate
power and authority to execute and deliver this Agreement, any Subsequent
Transfer Agreement and any other Transaction Document to which it is a party,
and to carry out its obligations set forth herein and therein; and the
execution, delivery, and performance of this Agreement, any Subsequent Transfer
Agreement and any other Transaction Document to which it is a party, has been
duly authorized by each of the Originators by all necessary corporate action;

         (v) Due Execution and Delivery. This Agreement and each of the other
Transaction Documents to which it is a party have been duly executed and
delivered on behalf of each of HPSC and ACFC;

         (vi) Title. Immediately prior to the transfers herein contemplated,
each of HPSC and ACFC, as applicable, had good and marketable title to the
Contracts and Conveyed Assets to be conveyed by HPSC and ACFC, respectively, to
LLC I or LLC II, as applicable, hereunder, free and clear of all Adverse Claims;

         (vii) Valid Assignment; Binding Obligations. This Agreement constitutes
a valid sale, assignment, transfer and conveyance to LLC I or LLC II, as
applicable, of all right, title, and interest of HPSC and ACFC, as applicable,
in, to and under the Contracts and the Conveyed Assets, and such Contracts and
Conveyed Assets will be held by LLC I or LLC II, as applicable, free and clear
of any Adverse Claim of any Person claiming through or under HPSC and ACFC, as
applicable, except the lien on the Contracts and the Conveyed Assets in favor of
the Indenture Trustee granted pursuant to the Indenture; and this Agreement and
every other Transaction Document to which it is a party when duly executed and
delivered, will constitute the legal, valid, and binding obligation of HPSC and
ACFC, as applicable, enforceable against HPSC and ACFC, as applicable, in
accordance with their respective terms, except that (A) such enforcement may be
subject to bankruptcy, insolvency, reorganization, moratorium or other similar
laws (whether statutory, regulatory or decisional) now or hereafter in effect
relating to creditors' rights generally and (B) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to
certain equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought, whether in a proceeding at law or in equity;

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<PAGE>   11

         (viii) Insolvency. Neither Bravo nor Capital, as applicable, is
insolvent nor will be rendered insolvent by the transactions contemplated by
this Agreement or any other Transaction Document to which it is a party and each
of Bravo and Capital, as applicable, has an adequate amount of capital to
conduct its business in the ordinary course and to carry out its obligations
hereunder and under each other Transaction Document to which it is a party;

         (ix) No Violation. The consummation of the transactions contemplated by
and the fulfillment of the terms of this Agreement, any Subsequent Transfer
Agreement and the other Transaction Documents to which HPSC or ACFC, as
applicable, is a party will not conflict with, result in any breach of any of
the terms and provisions of, or constitute (with or without notice or lapse of
time or both) a default under, the articles of incorporation or bylaws of either
of HPSC or ACFC, as applicable, or any material indenture, agreement, mortgage,
deed of trust, or other instrument to which HPSC or ACFC, as applicable, is a
party or by which it is bound, or result in the creation or imposition of any
Lien upon any of its properties pursuant to the terms of any such indenture,
agreement, mortgage, deed of trust, or other instrument, other than this
Agreement, any Subsequent Transfer Agreement or the other Transaction Documents
to which HPSC or ACFC, as applicable, is a party, or violate any law or any
order, injunction, writ, rule, or regulation applicable to HPSC or ACFC, as
applicable, of any Governmental Authority having jurisdiction over HPSC or ACFC,
as applicable, or any of its properties which is reasonably likely to have a
material adverse effect on (A) the transactions contemplated under this
Agreement, any Subsequent Transfer Agreement or the other Transaction Documents
to which HPSC or ACFC, as applicable, is a party or (B) the validity,
enforceability or collectability of the Conveyed Assets;

         (x) No Proceedings. There are no Proceedings or investigations pending,
or, to the knowledge of HPSC or ACFC, as applicable, threatened, before any
Governmental Authority (A) asserting the invalidity of the Transaction Documents
to which it is a party, (B) seeking to prevent the consummation of any of the
transactions contemplated by the Transaction Documents to which it is a party,
or (C) seeking any determination or ruling that is reasonably likely to
materially and adversely affect the performance by HPSC or ACFC, as applicable,
of its obligations under, or the validity or enforceability of, the Transaction
Documents to which it is a party; and

         (xi) No Consent Required. None of HPSC or ACFC is required to obtain
the consent of any other Person, or any consent, license, approval or
authorization or registration or declaration with, any Governmental Authority in
connection with the execution, delivery or performance of this Agreement and the
Transaction Documents to which it is a party, except for such as have been
obtained, effected or made.

         (xii) Fair Consideration. The consideration received by each of HPSC
and ACFC hereunder is fair consideration having value reasonably equivalent to
or in excess of the value of the Contracts and the Conveyed Assets conveyed by
it and the performance of HPSC's and ACFC's respective obligations hereunder;

         (xiii) Principal Place of Business of HPSC. The principal place of
business and chief executive office of HPSC is located at 60 State Street,
Boston Massachusetts 02109-1803 and, there are not now, and during the past four
months there have not been, any

                                      -8-
<PAGE>   12

other locations where HPSC is located (as that term is used in the UCC in the
state of such location) except that, with respect to such changes occurring
after the date of this Agreement, as shall have been specifically disclosed to
the Servicer and the Indenture Trustee in writing;

         (xiv) Principal Place of Business of ACFC. The principal place of
business and chief executive office of ACFC is located at 433 South Main Street,
West Hartford, Connecticut 06110 and, there are not now, and during the past
four months there have not been, any other locations where ACFC is located (as
that term is used in the UCC in the state of such location) except that, with
respect to such changes occurring after the date of this, as shall have been
specifically disclosed to the Servicer and the Indenture Trustee in writing;

         (xv) Valid Business Reasons. Each of HPSC and ACFC has valid business
reasons for selling its interest in the Contracts and the Conveyed Assets rather
than obtaining a loan with the Contracts and the Conveyed Assets as collateral;

         (xvi) Absence of Event. No event has occurred which materially and
adversely affects either of HPSC's or ACFC's operations or its ability to
perform its obligations under the Transaction Documents to which it is a party;
and

         (xvii) Accounting Treatment. Each of HPSC and ACFC will treat the sale
of the Contracts and the Conveyed Assets to LLC I or LLC II, as applicable,
pursuant to Article II as a sale of the Contracts and the Conveyed Assets to LLC
I or LLC II, as applicable, for financial reporting and accounting purposes.

     (b) Each of Bravo and Capital hereby makes the following representations
and warranties, in each case solely as to itself, for the benefit of the
Indenture Trustee, the Noteholders and the Issuers. Such representations and
warranties are made as of each Conveyance Date on which Bravo or Capital, as
applicable transfers Conveyed Assets and shall survive each sale, assignment,
transfer and conveyance by the Transferors of the respective Conveyed Assets to
LLC I or LLC II, as applicable, and their successors and assigns.

         (i) Organization and Good Standing. Each of Bravo and Capital is a
corporation, duly organized, validly existing and in good standing, under the
laws of the State of Delaware, with power and authority to own its properties
and to conduct its business as such properties are currently owned and such
business is currently conducted, and had at all relevant times, and now has,
power, authority, and legal right to acquire and own the Conveyed Assets
transferred by it;

         (ii) Due Qualification. Each of Bravo and Capital is qualified as a
foreign corporation in any state where it is required to be so qualified to
conduct its business and has obtained all necessary licenses, consents and
approvals as required under federal and state law, in each case, where the
failure to be so qualified, licensed, consented to or approved could reasonably
be expected materially and adversely to affect the ability of Bravo or Capital,
as applicable, to comply with the terms of this Agreement and the secretary's
certificate and Officer's Certificate to be delivered by each of Bravo and
Capital;

         (iii) Legal Name. The legal name of Bravo and Capital, as applicable,
is as set forth in their respective signature lines of this Agreement and
neither Bravo nor Capital,

                                      -9-
<PAGE>   13

as applicable, has changed its name since its formation and since such formation
neither Bravo nor Capital, as applicable, used, or now uses, any trade names,
fictitious names, assumed name or "doing business as" names;

         (iv) Power and Authority. Each of Bravo and Capital has the power and
authority to execute and deliver this Agreement and any other Transaction
Document to which it is a party, and to carry out its respective obligations set
forth herein and therein; each of Bravo and Capital has duly authorized the
conveyance to LLC I or LLC II, as applicable, of all of its right, title and
interest, if any, in the Conveyed Assets transferred by it by all necessary
action; and the execution, delivery, and performance of this Agreement, and any
other Transaction Document to which it is a party, has been duly authorized by
Bravo or Capital, as applicable, by all necessary action;

         (v) Due Execution and Delivery. This Agreement has been duly executed
and delivered on behalf of each of Bravo and Capital;

         (vi) Title. Immediately prior to the transfers herein contemplated,
each of Bravo and Capital, as applicable, had good and marketable title to the
Contracts and Conveyed Assets to be conveyed by Bravo or Capital, respectively,
to LLC I or LLC II, as applicable, hereunder, free and clear of all Adverse
Claims created by or through Bravo or Capital as applicable;

         (vii) Valid Assignment; Binding Obligations. This Agreement constitutes
a valid sale, assignment, transfer and conveyance to LLC I or LLC II, as
applicable, of all right, title, and interest of Bravo and Capital, as
applicable, in, to and under the Contracts and the Conveyed Assets to be
conveyed by Bravo or Capital, respectively, and such Contracts and Conveyed
Assets will be held by LLC I or LLC II, as applicable, free and clear of any
Adverse Claim of any Person claiming through or under Bravo or Capital, as
applicable, except the lien on the Contracts and the Conveyed Assets in favor of
the Indenture Trustee granted pursuant to the Indenture; and this Agreement when
duly executed and delivered, will constitute the legal, valid, and binding
obligation of Bravo and Capital, as applicable, enforceable against Bravo and
Capital, as applicable, in accordance with its terms, except that (A) such
enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium
or other similar laws (whether statutory, regulatory or decisional) now or
hereafter in effect relating to creditors' rights generally and (B) the remedy
of specific performance and injunctive and other forms of equitable relief may
be subject to certain equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought, whether in a proceeding at
law or in equity;

         (viii) Insolvency. Neither Bravo nor Capital, as applicable, is
insolvent nor will be rendered insolvent by the transactions contemplated by
this Agreement and each of Bravo and Capital, as applicable, has an adequate
amount of capital to conduct its business in the ordinary course and to carry
out its obligations hereunder;

         (ix) No Violation. The consummation of the transactions contemplated by
and the fulfillment of the terms of this Agreement and the other Transaction
Documents to which Bravo or Capital, as applicable, is a party will not conflict
with, result in any breach of any of the terms and provisions of, or constitute
(with or without notice or lapse of time or both)

                                      -10-
<PAGE>   14

a default under, the certificate of incorporation or by-laws of either of Bravo
or Capital, as applicable, or any material indenture, agreement, mortgage, deed
of trust, or other instrument to which Bravo or Capital, as applicable, is a
party or by which it is bound, or result in the creation or imposition of any
Lien upon any of its respective properties pursuant to the terms of any such
indenture, agreement, mortgage, deed of trust, or other instrument, other than
this Agreement or violate any law or any order, injunction, writ, rule, or
regulation applicable to Bravo or Capital, as applicable, of any court or of any
Governmental Authority having jurisdiction over Bravo or Capital, as applicable,
or any of its properties which is reasonably likely to have a material adverse
effect on (A) the transactions contemplated under this Agreement, any Subsequent
Transfer Agreement or the other Transaction Documents to which Bravo or Capital,
as applicable, is a party or (B) the validity, enforceability or collectability
of the Contracts or the Conveyed Assets to be conveyed by Bravo or Capital,
respectively;

         (x) No Proceedings. There are no Proceedings or investigations pending,
or, to the knowledge of Bravo or Capital, as applicable, threatened against
Bravo or Capital, as applicable, before any Governmental Authority (A) asserting
the invalidity of this Agreement or any other Transaction Document to which it
is a party, (B) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or any Subsequent Transfer Agreement, or (C)
seeking any determination or ruling that is reasonably likely to materially and
adversely affect the performance by Bravo or Capital, as applicable, of its
obligations under, or the validity or enforceability of, this Agreement or any
other Transaction Document to which it is a party;

         (xi) No Consent Required. None of Bravo or Capital is required to
obtain the consent of any other Person, or any consent, license, approval or
authorization or registration or declaration with, any Governmental Authority in
connection with the execution, delivery or performance of this Agreement and the
other Transaction Documents to which it is a party, except for such as have been
obtained, effected or made;

         (xii) Fair Consideration. The consideration received by each of Bravo
and Capital hereunder is fair consideration having value reasonably equivalent
to or in excess of the value of the Contracts and the Conveyed Assets conveyed
by it and the performance of Bravo's and Capital's respective obligations
hereunder;

         (xiii) Principal Place of Business. The principal place of business and
chief executive office of Bravo is located at 60 State Street, Boston,
Massachusetts 02109-1803 and, there are not now, and during the past four months
there have not been, any other locations where Bravo is located (as that term is
used in the UCC in the state of such location) except that, with respect to such
changes occurring after the date of this Agreement, as shall have been
specifically disclosed to the Servicer and the Indenture Trustee in writing; and

         (xiv) Principal Place of Business. The principal place of business and
chief executive office of Capital is located at 60 State Street, Boston,
Massachusetts 02109-1803 and, there are not now, and during the past four months
there have not been, any other locations where Capital is located (as that term
is used in the UCC in the state of such location) except that, with respect to
such changes occurring after the date of this, as shall have been specifically
disclosed to the Servicer and the Indenture Trustee in writing.

                                      -11-
<PAGE>   15

     Section 3.02. Representations and Warranties of the Originators with
Respect to the Contracts. With respect to each Contract, each of the Originators
hereby makes the following representations and warranties to the Indenture
Trustee, the Issuers and the Noteholders, on which the Indenture Trustee relies
in accepting the Pledged Property in trust and authenticating the Notes, and on
which the Noteholders have relied and will rely in purchasing the Notes. Such
representations, warranties and covenants are made as of the Initial Cut-Off
Date with respect to the Initial Contracts, as of the Subsequent Cut-Off Date
with respect to the Subsequent Contracts and as of the Substitute Cut-Off Date
with respect to the Substitute Contracts and shall survive the pledge, transfer,
and assignment of any Pledged Property to the Indenture Trustee for the benefit
of the Noteholders.

     (a) HPSC represents and warrants as follows with respect to each Contract
that is not a Revolving Loan:

         (i) The Obligor under each Contract (A) is not an affiliate of HPSC and
(B) is not a government or a governmental subdivision or agency.

         (ii) The Obligor under each Contract has made at least one Scheduled
Payment as of the Closing Date with respect to the Contracts included in the
Asset Pool as of the Closing Date, as of the applicable Subsequent Transfer Date
with respect to a Subsequent Contract, and with respect to a Substitute
Contract, as of the related Substitute Transfer Date.

         (iii) The Obligor under each Contract is not an Obligor in respect of
Contracts with an Aggregate Outstanding Contract Balance in excess of 1.5% of
the Aggregate Outstanding Contract Balance of all Contracts.

         (iv) Each Contract is not a Defaulted Contract or a Delinquent
Contract.

         (v) The Obligor under each Contract has been directed to make all
payments to the Lock-Box Account.

         (vi) Each Contract has an outstanding term of 85 months or less.

         (vii) The Contract Files for each Contract are in the custody of the
Custodian on behalf of the Indenture Trustee.

         (viii) HPSC has performed all material obligations required to be
performed by it under each Contract.

         (ix) Each Contract is "chattel paper" within the meaning of Article 9
of the UCC of all applicable jurisdictions. Each such Contract is secured by a
first priority perfected security interest in the related Equipment and all
other Collateral.

         (x) Each Contract is an "eligible asset" as defined in Rule 3a-7 under
the Investment Company Act of 1940, as amended.

         (xi) There is not more than one original counterpart of each Contract.

                                      -12-
<PAGE>   16

         (xii) Each Contract is denominated and payable only in United States
dollars in the United States by an Obligor with a billing address in the United
States and for which the related Equipment is located in the United States.

         (xiii) Each Contract is in full force and effect and is and at all
times will be the legal, valid and binding obligation of the related Obligor
enforceable against such Obligor in accordance with its terms and is not subject
to, nor has there been asserted, any litigation, right of rescission, setoff,
counterclaim or other defense thereunder.

         (xiv) No Contract contravenes, in any material respect, any laws, rules
or regulations applicable thereto (including, without limitation, laws, rules
and regulations relating to truth in lending, fair credit billing, fair credit
reporting, equal credit opportunity, fair debt collection practices and privacy)
and no part of such Contract is in violation of any such law, rule or regulation
in any material respect.

         (xv) Each Contract is assignable without the prior written consent of
the Obligor thereunder except for such consents as have been previously
obtained.

         (xvi) Each Contract was generated in the ordinary course of business of
HPSC.

         (xvii) The Obligor under each Contract is responsible for the payment
of all expenses in connection with maintenance, repair, insurance and taxes with
respect to the related Equipment and such Obligor is required to make Scheduled
Payments thereunder without condition notwithstanding damage to or destruction
of the Equipment, or any other event, including Equipment obsolescence.

         (xviii) No Contract is a lease on a Vehicle or other type of equipment
which requires titling in the name of the related Issuer in order to perfect the
Issuer's interest therein.

         (xix) Each Contract contains customary and enforceable provisions
adequate for realization of the benefits of the related Collateral.

         (xx) No Contract is a "consumer lease" as defined in Section
2A-103(l)(e) of the UCC.

         (xxi) No Contract is subject to any guaranty of the payment obligation
thereunder by HPSC or any of its Affiliates.

         (xxii) With respect to each Contract, HPSC has not established any
specific credit reserve with respect to the related Obligor.

         (xxiii) Each Contract provides that HPSC and its assignees may
accelerate all remaining Scheduled Payments due thereunder if the Obligor is in
default under any of its obligations under such Contract.

                                      -13-
<PAGE>   17

         (xxiv) No Contract has been terminated as a result of the loss, theft,
damage beyond repair or governmental seizure of any item of Equipment and/or
Loan Agreement Collateral or for any other reason.

         (xxv) Each Contract provides that in the event of the loss, theft,
damage beyond repair or governmental seizure of the related Equipment and/or
Loan Agreement Collateral, the Obligor is required to repair or replace the
related Equipment and/or Loan Agreement Collateral.

         (xxvi) The Obligor under each Contract has represented to HPSC that
such Obligor has accepted the related Equipment and/or Loan Agreement Collateral
or is contractually bound to accept such Equipment and/or Loan Agreement
Collateral upon shipment or delivery thereof.

         (xxvii) Each Contract has been originated in all material respects in
accordance with the then effective Credit and Collection Policies and
Procedures.

         (xxviii) The information set forth on the List of Initial Contracts is
complete, true and correct as of the Initial Cut-Off Date.

         (xxix) Each Contract and the Equipment and/or Loan Agreement Collateral
have not been assigned or pledged, and HPSC has good and marketable title
thereto, and HPSC is the sole owner and holder of each Contract, Equipment
and/or Installment Sales Collateral free and clear of any and all liens, claims,
encumbrances, participation or contingent interests, shares appreciation
features, equities, pledges, charges or security interests of any nature and has
full right and authority, subject to no interest or participation of, or
agreement with, any other party, to sell and assign the same pursuant to this
Agreement.

         (xxx) Each Loan Agreement is a valid, subsisting and enforceable first
or lien on the related Loan Agreement Collateral.

         (xxxi) The terms of each Contract have not been impaired, waived,
altered or modified in any respect, except by a written instrument which has
been filed and/or recorded, in all places necessary to perfect, maintain and
continue the validity and priority lien of each Contract. The substance of any
such alteration or modification is reflected on the List of Initial Contracts.

         (xxxii) No instruments of release or waiver have been executed in
connection with any Contract, and no Obligor has been released from liability
under any Contract, in whole or in part.

         (xxxiii) The Contract File is complete and contains each of the
documents and instruments specified to be included therein duly executed and in
due and proper form.

         (xxxiv) Each Contract obligates the relevant Obligor thereunder to
maintain insurance on the related Equipment at such Obligor's cost and expense,
and upon such Obligor's failure to do so, authorizes the holder of the Contract
to call an event of default or, at holder's option, to obtain and maintain such
insurance at such Obligor's cost and expense and to

                                      -14-
<PAGE>   18

seek reimbursement therefor from the Obligor. All Collateral securing each
Contract is covered by such insurance.

         (xxxv) No Contract is subject to any right of rescission, set-off,
abatement, diminution, counterclaim or defense, including the defense of usury,
nor will the operation of any of the terms of any Contract, or the exercise of
any right thereunder, render any Contract unenforceable, in whole or in part, or
subject to any right of rescission, set off, abatement, diminution, counterclaim
or defense, including the defense of usury, or the violation of any applicable
disclosure or consumer credit laws, and no such right of rescission, set-off,
abatement, diminution, counterclaim or defense has been asserted with respect
thereto.

         (xxxvi) Each Loan Agreement contains an enforceable provision for the
acceleration of the payment of the unpaid principal balance of the Loan
Agreement in the event the related Loan Agreement Collateral is sold without the
prior consent of HPSC thereunder.

         (xxxvii) Each Contract contains customary and enforceable provisions
which render the rights and remedies of the holder thereof adequate for the
realization against the Equipment and/or Loan Agreement Collateral of the
benefits of the security, including by judicial foreclosure.

         (xxxviii) The origination, servicing and collection practices used by
HPSC with respect to each Contract have been in all respects legal, proper,
prudent and have met customary standards utilized by lenders for commercial loan
origination and servicing business.

         (xxxix) Each Contract provides for the Obligor to pay a base monthly
payment, and contains other provisions customarily included in such commercial
loans.

         (xl) There is no claim, litigation or other judicial or administrative
proceeding pending or, to the knowledge of HPSC, threatened against the
Equipment and/or Loan Agreement Collateral or any Obligor which could materially
and adversely affect the value of the Equipment and/or Loan Agreement Collateral
or the validity or priority of any Contract or the ability of any Obligor to
perform its obligations in connection with any Contract.

         (xli) The Contracts have not been selected from HPSC's portfolio of
commercial loans in a manner which would be adverse to the interests of the
Noteholders.

     (b) ACFC represents and warrants as follows with respect to each Contract
which is a Revolving Loan:

         (i) The Obligor under each Revolving Loan: (A) is not an affiliate of
ACFC and (B) is not a government or a governmental subdivision or agency.

         (ii) The Obligor under each Revolving Loan has made at least one
Scheduled Payment as of the Closing Date with respect to the Revolving Loans
included in the Asset Pool as of the Closing Date, as of the applicable
Subsequent Transfer Date with respect to a Subsequent Contract which is a
Revolving Loan, and with respect to a Substitute Contract which is a Revolving
Loan, as of the related Substitute Transfer Date.

                                      -15-
<PAGE>   19

         (iii) The Obligor under each Revolving Loan is not an Obligor in
respect of Contracts with an Aggregate Outstanding Contract Balance in excess of
1.5% of the Aggregate Outstanding Contract Balance of all Contracts.

         (iv) Each Revolving Loan is not a Defaulted Contract.

         (v) ACFC has performed all material obligations required to be
performed by it under the Revolving Loan.

         (vi) There is not more than one original counterpart of each Revolving
Loan.

         (vii) Each Revolving Loan is denominated and payable only in United
States dollars in the United States by an Obligor with a billing address in the
United States and for which the related Revolving Loan Collateral is located in
the United States.

         (viii) Each Revolving Loan does not contravene, in any material
respect, any laws, rules or regulations applicable thereto (including, without
limitation, laws, rules and regulations relating to truth in lending, fair
credit billing, fair credit reporting, equal credit opportunity, fair debt
collection practices and privacy) and no part of such Revolving Loan is in
violation of any such law, rule or regulation in any material respect.

         (ix) Each Revolving Loan is assignable without the prior written
consent of the Obligor thereunder except for such consents as have been
previously obtained.

         (x) Each Revolving Loan is non-cancelable and in full force and effect
and is and at all times will be the legal, valid and binding obligation of the
related Obligor enforceable against such Obligor in accordance with its terms
and is not subject to, nor has there been asserted, any litigation, right of
rescission, setoff, counterclaim or other defense thereunder.

         (xi) Each Revolving Loan was generated in the ordinary course of
business of the ACFC.

         (xii) The Obligor under each Revolving Loan has been directed to make
all payments to a segregated account in the name of the Indenture Trustee.

         (xiii) Each Revolving Loan has an outstanding term of 33 months or
less.

         (xiv) Each Revolving Loan contains customary and enforceable provisions
adequate for realization of the benefits of the related collateral.

         (xv) Each Revolving Loan is not subject to any guaranty of the payment
obligation thereunder by ACFC or any of its Affiliates nor has ACFC established
any specific credit reserve with respect to the related Obligor.

                                      -16-
<PAGE>   20

         (xvi) Each Revolving Loan provides that ACFC and its assignees may
accelerate all remaining Scheduled Payments due thereunder if the Obligor is in
default under any of its obligations under such Contract.

         (xvii) Each Revolving Loan has been originated in all material respects
in accordance with ACFC's underwriting policies and procedures.

         (xviii) The Contract Files for each Revolving Loan are in the custody
of the Custodian on behalf of the Indenture Trustee.

         (xix) The information set forth on the List of Initial Contracts is
complete, true and correct as of the Initial Cut-Off Date.

         (xx) Each Revolving Loan and the Revolving Loan Collateral have not
been assigned or pledged, and ACFC has good and marketable title thereto, and
ACFC is the sole owner and holder of each Revolving Loan and any Revolving Loan
Collateral free and clear of any and all liens, claims, encumbrances,
participation or contingent interests, shares appreciation features, equities,
pledges, charges or security interests of any nature and has full right and
authority, subject to no interest or participation of, or agreement with, any
other party, to sell and assign the same pursuant to this Agreement.

         (xxi) Each Revolving Loan is a valid, subsisting and enforceable first
or lien on the related Revolving Loan Collateral.

         (xxii) The terms of each Revolving Loan have not been impaired, waived,
altered or modified in any respect, except by a written instrument which has
been filed and/or recorded, in all places necessary to perfect, maintain and
continue the validity and priority lien of each Revolving Loan. The substance of
any such alteration or modification is reflected on the List of Initial
Contracts.

         (xxiii) No instruments of release or waiver have been executed in
connection with any Revolving Loan, and no Obligor has been released from
liability under any Revolving Loan, in whole or in part.

         (xxiv) The Contract File is complete and contains each of the documents
and instruments specified to be included therein duly executed and in due and
proper form.

         (xxv) Each Revolving Loan obligates the relevant Obligor thereunder to
maintain insurance on the related Revolving Loan Collateral at such Obligor's
cost and expense, and upon such Obligor's failure to do so, authorizes the
holder of the Revolving Loan to call an event of default or, at holder's option,
to obtain and maintain such insurance at such Obligor's cost and expense and to
seek reimbursement therefor from the Obligor. All Revolving Loan Collateral is
covered by such insurance.

         (xxvi) No Revolving Loan is subject to any right of rescission,
set-off, abatement, diminution, counterclaim or defense, including the defense
of usury, nor will the operation of any of the terms of any Revolving Loan, or
the exercise of any right thereunder, render any Revolving Loan unenforceable,
in whole or in part, or subject to any right of

                                      -17-
<PAGE>   21

rescission, set off, abatement, diminution, counterclaim or defense, including
the defense of usury, or the violation of any applicable disclosure or consumer
credit laws, and no such right of rescission, set-off, abatement, diminution,
counterclaim or defense has been asserted with respect thereto.

         (xxvii) Each Revolving Loan contains an enforceable provision for the
acceleration of the payment of the unpaid principal balance of the Revolving
Loan in the event the related Revolving Loan Collateral is sold without the
prior consent of ACFC thereunder.

         (xxviii) Each Revolving Loan contains customary and enforceable
provisions which render the rights and remedies of the holder thereof adequate
for the realization against the Revolving Loan Collateral of the benefits of the
security, including by judicial foreclosure.

         (xxix) The origination, servicing and collection practices used by ACFC
with respect to each Revolving Loan have been in all respects legal, proper,
prudent and have met customary standards utilized by lenders for commercial loan
origination and servicing business.

         (xxx) Each Revolving Loan provides for the Obligor to pay a monthly
interest payment, and contains other provisions customarily included in such
commercial loans.

         (xxxi) There is no claim, litigation or other judicial or
administrative proceeding pending or, to the knowledge of ACFC, threatened
against the Revolving Loan Collateral or any Obligor which could materially and
adversely affect the value of the Revolving Loan Collateral or the validity or
priority of any Revolving Loan or the ability of any Obligor to perform its
obligations in connection with any Revolving Loan.

         (xxxii) The Revolving Loans have not been selected from ACFC's
portfolio of commercial loans in a manner which would be adverse to the
interests of the Noteholders.

     Section 3.03. Substitution of Contracts and Equipment by each of the
Originators and the Servicer.

     (a) With respect to a substitution of Contracts in accordance with the
provisions of this Section 3.03 and Section 4.02 of the Indenture, each proposed
Substitute Contract must (i) satisfy all of the representations and warranties
set forth in Section 3.02 of this Agreement, (ii) for Contracts which are not
Revolving Loans, have a Discounted Contract Balance of not less than the
Discounted Contract Balance of the Contract being replaced, and for Contracts
which are Revolving Loans, have an Outstanding Revolver Balance of not less than
the Outstanding Revolver Balance of the Contract being replaced, (iii) be
eligible to be substituted by each of the Originators, as applicable, in
accordance with the provisions of the Indenture, (iv) with respect to each
Substitute Contract which is replacing a Lease, such Substitute Contract must be
a Lease, (v) with respect to each Substitute Contract which is replacing a Loan
Agreement, such Substitute Contract must be a Loan Agreement, (vi) with respect
to each Substitute Contract which is replacing a Revolving Loan, such Substitute
Contract must be a Revolving Loan, (vii) with respect to each Substitute
Contract which is replacing a Contract with Residuals, such

                                      -18-
<PAGE>   22

Substitute Contract must have Residuals equal to or greater than the Residuals
of the Contract which is being replaced, (viii) with respect to each Substitute
Contract which is replacing a Step Lease for which the Step-up Date has not
passed, such Substitute Contract must be a Step Lease with increased Scheduled
Payments at least equal to the increased Scheduled Payments of the Contract
being replaced, (ix) have a maturity date which is not later than the date which
is six months prior to the latest Stated Maturity Date, (x) not be originated by
ACFC and (xi) not be a Revolving Loan. For purposes of determining compliance
with clause (ii) of the preceding sentence, if more than one Substitute Contract
is being provided on any date, the Discounted Contract Balance or the
Outstanding Revolver Balance, as applicable, of the Substitute Contracts and the
Contracts being replaced shall be determined on an aggregate basis.

     (b) As of each Substitute Transfer Date, the Aggregate Outstanding Contract
Balance of Substituted Contracts being substituted as a result of a Warranty
Event, shall not exceed 5% of the sum of (i) the Initial Aggregate Contract
Balance and (ii) the Original Pre-Funded Amount.

     (c) Any substitution of a Contract pursuant to this Agreement will be
effected by (i) delivery to the Custodian of the Contract File for each such
Substitute Contract at least two Business Days prior to such conveyance, (ii)
filing of any Financing Statements necessary to perfect the interest of the
Indenture Trustee in the Substitute Contracts and delivery to the Indenture
Trustee of all such Financing Statements prepared in accordance with the Filing
Requirements and (iii) delivery to the Indenture Trustee of a List of Substitute
Contracts reflecting such substitution.

     (d) Except as may be set forth in the Transaction Documents, it is
understood and agreed that the obligations of each of the Originators and the
Servicer with respect to a breach as provided in this Section 3.03 and Section
4.02 of the Indenture constitute the sole remedy against each of the Originators
and the Servicer for such breach available to the Issuers, the Indenture Trustee
and the Noteholders.

     Section 3.04. Breach of Representations and Warranties; Repurchase of
Contracts.

     (a) If HPSC or ACFC during the term of this Agreement discovers, or
receives notice from the Indenture Trustee, the Servicer or the Noteholders,
that any of its representations or warranties contained in Section 3.01 or 3.02
are, in any material respect, false, incorrect or misleading, or if HPSC or ACFC
obtains knowledge of any event or circumstance that would reasonably cause HPSC
or ACFC to believe that any of its respective representations or warranties are,
in any material respect, false, incorrect or misleading, HPSC or ACFC, as
applicable, shall repurchase the relevant Contracts in accordance with Section
4.01 of the Indenture. If ACFC fails to repurchase any Contract or Contracts
which it is obligated to repurchase pursuant to this Section 3.04 and Section
4.01 of the Indenture, HPSC shall repurchase the relevant Contracts in
accordance with Section 4.01 of the Indenture.

     (b) Subject to the provisions of Sections 4.02(b) through (d) of the
Indenture and only with respect to Contracts held by LLC II, (i) the Servicer or
an Originator may substitute one or more Contracts, transfer all of its right,
title and interest in the related Substitute

                                      -19-
<PAGE>   23

Conveyed Assets and terminate the security interest in the related Equipment
with respect to any Contract that becomes a 90-Day Delinquent Contract or a
Defaulted Contract or is the subject of a Casualty Loss, (ii) the Servicer may
substitute one or more Substitute Contracts, transfer all of its right, title
and interest in the related Substitute Conveyed Assets and terminate the
security interest in the related Equipment with respect to any Contract that is
subject to a Full Prepayment, and (iii) the Servicer or the Originators, as the
case may be, may substitute one or more Substitute Contracts, transfer all of
its right, title and interest in the related Substitute Conveyed Assets and
terminate the security interest in the related Equipment with respect to any
Contract that is the subject of a Warranty Event and in respect of which such
Substitute Contracts are substituted.

                                   ARTICLE IV.

                                    COVENANTS

     Section 4.01. Covenants of the Originators. Each of the Originators hereby
covenants and agrees with the Issuers, the Noteholders and the Indenture Trustee
with respect to itself as follows:

     (a) Preservation of Security Interest. The Originators shall execute and
file or cause to be executed and filed such financing statements and cause to be
executed and filed such continuation statements, all in such manner and in such
places as may be required by law fully to preserve, maintain, and protect the
respective right, title and interest of the Issuers, as owners, and the
Indenture Trustee, as secured party, in the Contracts and the Conveyed Assets
(subject to the Filing Requirements with respect to the Equipment). The
Originators shall deliver (or cause to be delivered) to the Indenture Trustee
file-stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing.

     (b) Obligations with Respect to Contracts and Conveyed Assets. Each of the
Originators will duly fulfill all obligations on its part to be fulfilled under
or in connection with each Contract, and will do nothing to impair the rights of
the Issuers or the Indenture Trustee in any of the Contracts or the Conveyed
Assets.

     (c) Compliance with Law. Each of the Originators will comply, in all
material respects, with all acts, rules, regulations, orders, decrees and
directions of any Governmental Authority applicable to its business and to the
Contracts and the Conveyed Assets or any part thereof; provided, however, that
any of the Originators may contest any act, rule, regulation, order, decree or
direction in any reasonable manner which shall not materially and adversely
affect the rights of the Issuers or the Indenture Trustee in the Contracts or
the Conveyed Assets.

     (d) Conveyance of Contracts and Conveyed Assets; Security Interests. Except
for the transfers and conveyances hereunder, under any Subsequent Transfer
Agreement or under any other Transaction Document, the Originators will not, and
will not permit other Transferors to, sell, pledge, assign or transfer to any
other Person, or grant, create, incur, assume or suffer to exist any Adverse
Claim, on any Contract, any Conveyed Asset, or any interest therein and the
Originators shall defend the right, title, and interest of the Issuers, the
Indenture Trustee and their

                                      -20-
<PAGE>   24

respective successors and assigns in, to, and under the Contracts and the
Conveyed Assets, against all claims of third parties claiming through or under
the Transferors.

     (e) Notification of Breach. The Originators will advise the Issuers, the
Indenture Trustee and the Noteholders promptly, in reasonable detail, upon
discovery of the occurrence of a breach, in any material respect, by either of
the Originators, the Servicer or any of the Transferors of any of its respective
representations, warranties and covenants contained herein.

     (f) Further Assurances. Each of the Originators will make, execute or
endorse, acknowledge and file or deliver (or will cause to be made, executed or
endorsed, acknowledged and filed or delivered) to the Issuers and the Indenture
Trustee from time to time such schedules, confirmatory assignments, conveyances,
transfer endorsements, powers of attorney, certificates, reports and other
assurances or instruments and take such further steps relating to the Contracts
and the Conveyed Assets and other rights covered by this Agreement, as the
Issuers, a Noteholder or the Indenture Trustee may request and reasonably
require, provided that no UCC filing will be required with respect to the
Equipment, except as required by the Filing Requirements.

     (g) Indemnification. Each of the Originators agrees to indemnify, defend
and hold the Issuers, the Noteholders and the Indenture Trustee harmless from
and against any and all loss, liability, damage, judgment, claim, deficiency, or
expense (including interest, penalties, reasonable attorneys' fees and amounts
paid in settlement) to which any of them may become subject insofar as such
loss, liability, damage, judgment, claim, deficiency, or expense arises out of
or is based upon a breach of representations and warranties contained in Section
3.01 or 3.02 or covenants contained in this Section 4.01, or any information
certified or set forth in this Agreement or in any schedule delivered by it
hereunder, being untrue in any material respect at any time. The obligations of
the Originators under this Section 4.01(g) shall be considered to have been
relied upon by the Issuers, the Noteholders and the Indenture Trustee and shall
survive the execution, delivery, and performance of this Agreement regardless of
any investigation made by or on behalf of the Issuers, the Noteholders or the
Indenture Trustee.

     (h) Notice of Adverse Claims. The Originators shall notify the Issuers, the
Noteholders and the Indenture Trustee, promptly after becoming aware of any
Adverse Claim on any Contract or Conveyed Asset.

     (i) Taxes. Each of the Originators shall promptly pay or cause to be paid
all applicable taxes required to be paid in connection with the transfer of the
Contracts and the Conveyed Assets by the Transferors to LLC I or LLC II, as
applicable, and acknowledges that none of the Issuers, Bravo or Capital shall
have any responsibility with respect thereto. Each of the Originators shall
promptly pay and discharge, or cause the payment and discharge of, all federal
income taxes (and all other material taxes) when due and payable by each
Transferor, except such as may be contested in good faith by appropriate
proceedings and for which an adequate reserve has been established and is
maintained in accordance with GAAP. The Originators shall promptly notify the
Issuers, the Indenture Trustee and the Noteholders of any material challenge,
contest or proceeding pending by or against any of the Transferors before any
taxing authority.

                                      -21-
<PAGE>   25

     (j) Operation of each of Bravo and Capital. The Originators shall ensure
that each of Bravo and Capital shall:

         (i) be a limited purpose, corporation whose primary activities are
restricted in its certificate of incorporation;

         (ii) not engage in any action that would cause the separate legal
identity of Bravo or Capital not to be respected, including, without limitation,
(a) holding itself out as being liable for the debts of any other party or (b)
acting other than through its duly authorized agents;

         (iii) not be involved in the day-to-day management of HPSC, ACFC or the
Issuers;

         (iv) not incur, assume or guarantee any indebtedness except for such
indebtedness as may be incurred by Bravo or Capital in accordance with its
certificate of incorporation;

         (v) not commingle its funds, assets and records relating thereto with
those of HPSC, ACFC or any other entity except in the Lock-Box Account, as
provided for in the Escrow Agreement;

         (vi) act solely in its own name in the conduct of its business,
including business correspondence and other communications, and shall conduct
its business so as not to mislead others as to the identity of the entity with
which they are concerned;

         (vii) maintain separate corporate records and books of account and
shall not commingle its corporate records and books of account with the records
and books of account of any entity;

         (viii) not engage in any business or activity other than as permitted
in its certificate of incorporation;

         (ix) comply with all restrictions and covenants in, and shall not fail
to comply with the formalities established in, its certificate of incorporation
and by-laws;

         (x) manage its day-to-day business without the involvement of HPSC,
ACFC or any other entity, except for HPSC's role as a Servicer of receivables
for Bravo or Capital, as applicable, or as otherwise contemplated under the SPV
Transferor Documents;

         (xi) maintain a separate office from that of HPSC, ACFC and any other
entity;

         (xii) not act as an agent of HPSC, ACFC or any other entity, except to
the limited extent provided in the Transaction Documents and the SPV Transferor
Documents; and

                                      -22-
<PAGE>   26

         (xiii) maintain at all times at least one director who is an
independent director as required by its certificate of incorporation.

     (k) Financial Statements. The financial statements and books and records of
each of the Originators will reflect the separate existence of the Transferors
and the Issuers; the annual consolidated financial statements of each of the
Originators after the date hereof will contain disclosures to the effect that
each of the Originators has or will have one or more direct and indirect
subsidiaries that were or may be established as bankruptcy remote entities to
facilitate asset securitization; that in connection therewith, assets have been
or will be transferred directly or indirectly by each of the Originators to such
subsidiaries; and that these bankruptcy remote entities are separate legal
entities the assets of which are not available to satisfy the claims of
creditors of any of the Originators, any subsidiary or any other affiliate.

     (l) Merger or Consolidation. (i) Each of the Originators will keep in full
effect its existence, rights and franchises as a corporation and will obtain and
preserve its qualification to do business as a foreign corporation in each
jurisdiction which permits such qualification and in which it is necessary to
protect the validity and enforceability of this Agreement, any other Transaction
Document to which it is a party and to perform its duties under this Agreement
and each other Transaction Document to which it is a party.

         (ii) Any partnership, corporation or limited liability company (i) into
which any Originator may be merged or consolidated, (ii) resulting from any
merger, conversion, or consolidation to which any Originator shall be party, or
(iii) succeeding to any Originator's business substantially as a whole, shall
execute an agreement of assumption to perform all of such Originator's
obligations under this Agreement and any other Transaction Document to which it
is a party, and upon such execution will be such Originator's successor under
this Agreement and any other Transaction Document, without the execution or
filing of any document or any further act on the part of any of the parties to
this Agreement and any other Transaction Document to which it is a party,
anything in this Agreement and any other Transaction Document to which it is a
party to the contrary notwithstanding; provided, however, that (a) the
Originators shall have delivered to the Rating Agencies, the Issuers, the
Noteholders and the Indenture Trustee an Officer's Certificate and an opinion of
counsel, satisfactory to each of them, each stating that such consolidation,
conversion, merger, or succession and such agreement of assumption comply with
this Section 4.01(l) and that all conditions precedent, if any, provided for in
this Agreement relating to such transaction have been complied with, (b) the
Originators shall have delivered to the Issuers, the Rating Agencies, the
Noteholders and the Indenture Trustee an opinion of counsel, satisfactory to
each of them, stating that, in the opinion of such counsel, (1) either (A) all
financing statements and continuation statements and amendments thereto have
been executed and filed that are necessary fully to preserve and protect the
interest of the Issuers, the Indenture Trustee and the Noteholders in the
Contracts and the Conveyed Assets and reciting the details of such filings, or
(B) no such action shall be necessary to preserve and protect such interest, and
(2) after giving effect to such merger or consolidation, such Transferor (or its
successor) would not be substantively consolidated with HPSC or ACFC in the
event of a bankruptcy of HPSC or ACFC and (c) such partnership, corporation or
limited liability company shall have organizational documents with similar
restrictions as those of the Transferor which is the object of such merger or
consolidation.

                                      -23-
<PAGE>   27

     (m) Name Change or Relocation. If any change is to occur in a Transferor's
name, identity or structure, or in the location of its principal place of
business or chief executive office, then the Originators shall deliver at least
thirty (30) days' prior written notice of such change or relocation to the
Servicer, the Noteholders and the Indenture Trustee. No later than three days
after the effective date of such change, the Originators shall file such
amendments or statements as may be required to preserve and protect the
Indenture Trustee's interest in the Pledged Property, and shall deliver copies
thereof to the Indenture Trustee.

     (n) Chief Executive Offices. During the term of this Agreement and the
Indenture, each of the Originators will maintain and will cause each other
Transferor to maintain, its chief executive office and principal place of
business in one of the States of the United States.

     Section 4.02. Covenants of the Issuers. Each of the Issuers hereby
covenants and agrees with the Indenture Trustee and the Noteholders as follows:

     (a) Issuer's Certificate. Prior to each date as of which Contracts and the
interest of LLC I or LLC II, as applicable, in the Equipment subject to such
Contracts are to be purchased by the Originators or the Servicer, as applicable,
pursuant to the Indenture, LLC I or LLC II, as applicable, shall submit to the
Originators or the Servicer, as applicable, a certificate signed by a manager of
LLC I or LLC II, as applicable (an "Issuer's Certificate"). Each Issuer's
Certificate shall operate as an assignment, without recourse, representation, or
warranty, to the Originators or the Servicer, as applicable, of all of LLC I's
or LLC II's, as applicable, right, title, and interest in and to such purchased
Contract, the related Equipment and all security and documents relating thereto,
such assignment being an assignment outright and not for security; and upon
payment of the Purchase Amount, each of the Originators or the Servicer, as
applicable, will thereupon own such Contract, such interest in the related
Equipment and all such security and documents, free of any further obligation to
LLC I or LLC II, as applicable, with respect thereto.

     (b) Obligor's Quiet Enjoyment. Each of the Issuers hereby acknowledges and
agrees that its rights in the Equipment are expressly subject to the rights of
the related Obligors in such Equipment pursuant to the applicable Contracts.
Each of the Issuers covenants and agrees that, so long as an Obligor shall not
be in default of any of the provisions of the applicable Contract, none of the
Issuers nor any assignee of the Issuers will disturb the Obligor's quiet and
peaceful possession of the related Equipment and the Obligor's use thereof for
its intended purpose.

     (c) Operation of each of the Issuers. Each of the Issuers shall:

         (i) be a limited purpose, limited liability company whose primary
activities are restricted in its articles of organization and operating
agreement;

         (ii) not engage in any action that would cause the separate legal
identity of such Issuer not to be respected, including, without limitation, (a)
holding itself out as being liable for the debts of any other party (other than
the other Issuer) or (b) acting other than through its duly authorized agents;

         (iii) not be involved in the day-to-day management of HPSC or ACFC;

                                      -24-
<PAGE>   28

         (iv) not incur, assume or guarantee any indebtedness except for such
indebtedness as may be incurred by such Issuer in connection with the issuance
of the Notes;

         (v) not commingle its funds (other than amounts temporarily deposited
in the Lockbox Account), assets and records relating thereto with those of HPSC
or ACFC or any other entity (other than the other Issuer) except in the Lock-Box
Account as provided for in the Escrow Agreement;

         (vi) act solely in its own name in the conduct of its business,
including business correspondence and other communications, and shall conduct
its business so as not to mislead others as to the identity of the entity with
which they are concerned;

         (vii) maintain company records and books of account and shall not
commingle its company records and books of account with the records and books of
account of any entity;

         (viii) not engage in any business or activity other than in connection
with or relating to its articles of organization and operating agreement;

         (ix) not form, or cause to be formed, any subsidiaries;

         (x) comply with all restrictions and covenants in, and shall not fail
to comply with the limited liability company formalities established in, its
articles of organization and operating agreement;

         (xi) manage its day-to-day business without the involvement of HPSC or
ACFC;

         (xii) maintain a separate office from that of HPSC and ACFC;

         (xiii) not act as an agent of HPSC or ACFC, except to the limited
extent provided in the Transaction Documents;

         (xiv) maintain at all times two independent managers as required by its
limited liability company agreement; and

         (xv) not amend its articles of organization or operating agreement
without the prior written consent of the Noteholders and a written confirmation
from each of the Rating Agencies that the ratings on the Notes will not be
downgraded or withdrawn.

     Section 4.03. Transfer of Conveyed Assets. Each of the Transferors, each of
the Originators and the Servicer understands that the Issuers intend to pledge
the Pledged Property to the Indenture Trustee for the benefit of the Noteholders
pursuant to the Indenture. Each of the Transferors, each of the Originators and
the Servicer agrees that the Indenture Trustee may exercise the rights of the
Issuers hereunder and shall be entitled to all of the benefits to which the
Issuers are entitled to hereunder to the extent provided for herein.

                                      -25-
<PAGE>   29

                                   ARTICLE V.

                              CONDITIONS PRECEDENT

     Section 5.01. Conditions to Issuers' Initial Obligations. The obligations
of LLC I or LLC II, respectively, to accept the transfer of the Initial
Contracts and the Initial Conveyed Assets on the Closing Date as set forth
herein shall be subject to the satisfaction of the following conditions:

     (a) All representations and warranties of each of the Transferors, each of
the Originators and the Servicer contained in this Agreement shall be true and
correct on the Closing Date with the same effect as though such representations
and warranties had been made on such date;

     (b) All information concerning the Initial Contracts and the Initial
Conveyed Assets provided to the Issuers and the Noteholders shall be true and
correct as of the Initial Cut-Off Date in all material respects; (c) Each of the
Transferors shall have delivered to LLC I or LLC II, as applicable, a List of
Initial Contracts as of the Initial Cut-Off Date and shall have substantially
performed all other obligations required to be performed by the provisions of
this Agreement;

     (d) Each of the Transferors shall have recorded and filed, at the expense
of the Servicer or the Originators, any financing statement with respect to the
Initial Contracts and the Initial Conveyed Assets to be sold on the Closing Date
to LLC I or LLC II, as applicable, by each Transferor, as applicable, pursuant
to this Agreement meeting the requirements of applicable state law in such
manner in such jurisdictions as are necessary to perfect the transfer of the
Initial Contracts and the Initial Conveyed Assets from each such Transferor to
LLC I or LLC II, as applicable (subject to the Filing Requirements with respect
to the Equipment), and shall deliver a file-stamped copy of such financing
statements or other evidence of such filings to the Indenture Trustee;

     (e) All corporate and legal proceedings and all instruments in connection
with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to the Issuers and the Noteholders, and the Issuers and the
Noteholders shall have received from each of the Transferors copies of all
documents (including, without limitation, records of corporate or partnership
proceedings, as applicable) relevant to the transactions herein contemplated as
the Issuers or any Noteholder may reasonably have requested; and

     (f) All conditions necessary to vest in each of the Transferors and
subsequently in LLC I, LLC II and the Noteholders, good title, free and clear of
all Adverse Claims, to its respective Initial Contracts, Initial Conveyed Assets
and interests in Original Equipment and any other Collateral securing the
contracts shall have been satisfied.

     Section 5.02. Conditions to Issuers' Subsequent Obligations. The
obligations of LLC I or LLC II, respectively, to accept the transfer of any
Subsequent Contracts and any Subsequent Conveyed Assets as set forth herein
shall be subject to the satisfaction of the following conditions:

                                      -26-
<PAGE>   30

     (a) All representations and warranties of each of the Subsequent
Transferors, each of the Originators and the Servicer contained in this
Agreement and every other Transaction Document to which it is a party, shall be
true and correct on the Subsequent Transfer Date with the same effect as though
such representations and warranties had been made on such date;

     (b) All information concerning the Subsequent Contracts and the related
Subsequent Conveyed Assets provided to the Issuers shall be true and correct as
of the applicable Subsequent Cut-Off Date in all material respects;

     (c) Each of the Subsequent Transferors shall have delivered to LLC I or LLC
II, as applicable, a List of Subsequent Contracts as of the applicable
Subsequent Cut-Off Date and shall have substantially performed all other
obligations required to be performed by the provisions of this Agreement;

     (d) Each of the Subsequent Transferors shall have recorded and filed, at
the expense of the Servicer, any financing statement with respect to the
Subsequent Contracts and the related Conveyed Assets to be sold on such
Subsequent Closing Date to LLC I or LLC II, as applicable, by each Transferor,
as applicable, pursuant to this Agreement meeting the requirements of applicable
state law in such manner in such jurisdictions as are necessary to perfect the
transfer of the Subsequent Contracts and the related Subsequent Conveyed Assets
from each such Subsequent Transferor to LLC I or LLC II, as applicable (subject
to the Filing Requirements with respect to the Equipment), and shall deliver a
file-stamped copy of such financing statements or other evidence of such filings
to the Indenture Trustee;

     (e) All corporate and legal proceedings and all instruments in connection
with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to the Issuers, and the Issuers shall have received from each
of the Subsequent Transferors copies of all documents (including, without
limitation, records of corporate or partnership proceedings, as applicable)
relevant to the transactions herein contemplated as the Issuers may reasonably
have requested; and

     (f) All conditions necessary to vest in each of the Subsequent Transferors
good title, free and clear of all Adverse Claims, to its respective Subsequent
Contracts and the related Subsequent Conveyed Assets and interests in the
related Equipment and other Collateral securing the Contracts shall have been
satisfied.

                                   ARTICLE VI.

                                   TERMINATION

     Section 6.01. Termination. The obligations and responsibilities of each of
the Transferors, each of the Originators, the Servicer and the Issuers created
by this Agreement shall terminate upon the latest of (i) the maturity or other
liquidation of the last remaining Contract and the disposition of any amounts
received upon disposition of any Defaulted Contracts and any Equipment leased
thereunder; and (ii) the termination of the Indenture in accordance with the
terms thereof; provided, however, that the indemnifications contained in Section
4.01(g) herein shall survive the termination of this Agreement and the other
Transaction Documents.

                                      -27-
<PAGE>   31

                                  ARTICLE VII.

                            MISCELLANEOUS PROVISIONS

     Section 7.01. Amendment. This Agreement may be amended from time to time by
the parties hereto only with the prior written consent of the Indenture Trustee
and the Noteholders and written confirmation from the Rating Agencies that
amendment will not result in the reduction or withdrawal of any rating on any
Class of Notes.

     Section 7.02. GOVERNING LAW. THIS AGREEMENT AND ANY AMENDMENT HEREOF
PURSUANT TO SECTION 7.01 SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CHOICE OF LAW
PRINCIPLES) APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN AND THE
OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 7.03. Waiver of Jury Trial. The Issuers, the Servicer, the
Originators and the Transferors each hereby waive any right to have a jury
participate in resolving any dispute, sounding in contract, tort, or otherwise
arising out of, connected with, related to, or in connection with this
agreement. Instead, any dispute resolved in court will be resolved in a bench
trial without a jury.

     Section 7.04. Notices. All demands, notices, and communications under this
Agreement shall be in writing and shall be deemed to have been duly given, made
and received (i) when delivered against receipt of registered or certified mail
or upon actual receipt of registered or certified mail, postage prepaid, return
receipt requested; (ii) when delivered by courier with appropriate evidence of
receipt; or (iii) upon transmission via facsimile or telex with appropriate
evidence of receipt (a) in the case of the Servicer, at the following address:
60 State Street, Boston Massachusetts 02109-1803, (b) in the case of Bravo, at
the following address: 60 State Street, Boston Massachusetts 02109-1803, with a
copy to the Originators as set forth in clause (e) below and to MBIA Insurance
Corporation, 113 King Street, Armonk, New York 10504, Attention: Exposure
Management, (c) in the case of Capital, at the following address: 60 State
Street, Boston Massachusetts 02109-1803, with a copy to the Originators as set
forth in clause (e) below, (d) in the case of LLC I, at the following address:
60 State Street, Suite 3205, Boston Massachusetts 02109-1803, and in the case of
LLC II, at the following address: 60 State Street, Suite 3205, Boston
Massachusetts 02109-1803, in each case with a copy to the Originators as set
forth in clause (e) below, with a copy to Fleet Securities, Inc. at 100 Federal
Street, Boston, Massachusetts 02110 and (e) in the case of the Originators, at
their respective addresses set forth in Section 11.05 of the Indenture. Any
party may alter the address to which communications are to be sent by giving
notice of such change of address in conformity with the provisions of this
Section 7.04 for giving notice and by otherwise complying with any applicable
terms of this Agreement.

     Section 7.05. Severability of Provisions. If any one or more of the
covenants, agreements, provisions, or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions, or
terms shall be deemed severable from

                                      -28-
<PAGE>   32

the remaining covenants, agreements, provisions, or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions of
this Agreement.

     Section 7.06. Assignment. Notwithstanding anything to the contrary
contained in this Agreement, this Agreement may not be assigned by any of the
Transferors, without the prior written consent of the Issuers and the
Noteholders and, except as provided in Section 4.03, this Agreement may not be
assigned by the Issuers without the prior written consent of the Noteholders.
Whether or not expressly stated, all representations, warranties, covenants and
agreements of the Originators, the Servicer, the Transferors and the Issuers in
this Agreement, or in any document delivered by any of them in connection with
this Agreement, shall be for the benefit of, and shall be exercisable by the
Indenture Trustee for the benefit of the Noteholders.

     Section 7.07. Further Assurances. Each of the parties hereto agrees to do
such further acts and things and to execute and deliver to the Indenture Trustee
or any Noteholders such additional assignments, agreements, powers and
instruments as are required by the Indenture Trustee or any Noteholders to carry
into effect the purposes of this Agreement or to better assure and confirm unto
the Indenture Trustee its rights, powers and remedies hereunder, provided that
each of Bravo and Capital shall only be required to take any such actions if and
to the extent reimbursement from another Person for any costs, expenses or
liabilities incurred in taking such actions is reasonably assured.

     Section 7.08. No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising any right, remedy, power or privilege hereunder, shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise hereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and
not exhaustive of any rights, remedies, powers and privilege provided by law.

     Section 7.09. Counterparts. This Agreement may be executed in two or more
counterparts (and by different parties on separate counterparts), each of which
shall be an original, but all of which shall constitute one and the same
instrument.

     Section 7.10. Binding Effect; Third-Party Beneficiaries. This Agreement
will inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. The Indenture Trustee and the
Noteholders are intended third party beneficiaries of this Agreement.

     Section 7.11. Merger and Integration. Except as specifically stated
otherwise herein, this Agreement sets forth the entire understanding of the
parties relating to the subject matter hereof, and all prior understandings,
written or oral, are superseded by this Agreement. This Agreement may not be
modified, amended, waived or supplemented except as provided herein.

     Section 7.12. Headings. The headings herein are for purposes of reference
only and shall not otherwise affect the meaning or interpretation of any
provision hereof.

                                      -29-
<PAGE>   33

     Section 7.13.Schedules and Exhibits. The schedules and exhibits attached
hereto and referred to herein shall constitute a part of this Agreement and are
incorporated into this Agreement for all purposes.

     Section 7.14. No Bankruptcy Petition Against the Transferors or the
Issuers. Each of the parties hereto agrees that, prior to the date that is one
year and one day after the payment in full of the latest maturing Notes issued
by the Issuers, it will not institute against any of Bravo, Capital or the
Issuers, or join any other Person in instituting against any of the Transferors
or the Issuers, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other proceedings under the laws of the United States
or any state of the United States. This Section 7.14 shall survive the
termination of this Agreement.

     Section 7.15. Limited Recourse to SPV Transferors. (a) Each of the parties
hereto acknowledges that each of Bravo and Capital (each, an "SPV Transferor")
is intended to be operated as a bankruptcy-remote entity which will enter into
other securitization transactions and each other party hereto acknowledges and
agrees that it shall have no right, title or interest in or to any assets or
interests of either such SPV Transferor (other than the Contracts and Conveyed
Assets conveyed or purported to be conveyed hereunder) which are conveyed or
purported to be conveyed by such SPV Transferor to any other Person (whether by
way of a sale, assignment, capital contribution or by virtue of the granting of
a lien) ("Other Securitized Assets"). To the extent that, notwithstanding the
agreements and provisions contained in the immediately preceding sentence, any
Issuer or assignee thereof either (i) asserts an interest or claim to, or
benefit from, Other Securitized Assets, whether asserted against or through an
SPV Transferor or any other Person owned by an SPV Transferor, or (ii) is deemed
to have any such interest, claim or benefit in or from Other Securitized Assets,
whether by operation of law, legal process, pursuant to applicable provisions of
insolvency laws or otherwise (including by virtue of Section 1111(b) of the
Federal Bankruptcy Code or any successor provision having similar effect under
the Bankruptcy Code), and whether deemed asserted against or through an SPV
Transferor or any other Person owned by an SPV Transferor, then each Issuer, by
accepting the transfer of Conveyed Assets from an SPV Transferor, further
acknowledges and agrees that any such interest, claim or benefit in or from
Other Securitized Assets is and shall be expressly subordinated to the
indefeasible payment in full of all obligations and liabilities of the SPV
Transferor which, under the terms of the relevant documents relating to the
securitization of such Other Securitized Assets, are entitled to be paid from,
entitled to the benefits of, or otherwise secured by such Other Securitized
Assets (whether or not any such entitlement or security interest is legally
perfected or otherwise entitled to priority of distribution or application under
applicable law, including insolvency laws, and whether asserted against the
applicable SPV Transferor or any other Person owned by such SPV Transferor),
including the payment of post-petition interest on such other obligations and
liabilities. This subordination agreement shall be deemed a subordination
agreement within the meaning of Section 510(a) of the Bankruptcy Code. Each
Issuer, by accepting the transfer of Conveyed Assets from an SPV Transferor,
further acknowledges and agrees that no adequate remedy at law exists for a
breach of this Section 7.15 and the terms of this Section 7.15 may be enforced
by an action for specific performance. The provisions of this Section 7.15 shall
be for the third party benefit of those entitled to rely thereon and shall
survive the termination of this Agreement.

                                      -30-
<PAGE>   34

     (b) Notwithstanding the foregoing, nothing in this Section 7.15 shall
affect the rights of the Issuers to enforce any claims which the SPV Transferors
may have against HPSC in respect of any representations, warranties, covenants
and indemnities made by HPSC under the SPV Transferor Documents pursuant to
which HPSC transfers certain assets to Bravo or Capital, as applicable, with
respect to the Initial Conveyed Assets conveyed or purported to be conveyed by
Bravo or Capital hereunder, all of which representations, warranties, covenants
and indemnities are hereby assigned to the Issuers by each SPV Transferor as
part of the Initial Conveyed Assets.

                            [Signature Pages Follow]

                                      -31-
<PAGE>   35

     IN WITNESS WHEREOF, the parties hereto have caused this Receivables
Transfer Agreement to be duly executed by their respective officers as of the
day and year first above written.

                                    HPSC, INC.

                                    By:  ________________________________
                                         Name:
                                         Title:

                                    AMERICAN COMMERCIAL FINANCE CORPORATION

                                    By:  ________________________________
                                         Name:
                                         Title:

                                    HSPC BRAVO FUNDING CORP.

                                    By:  ________________________________
                                         Name:
                                         Title:

<PAGE>   36

                                    HPSC CAPITAL FUNDING, INC.

                                    By:  ________________________________
                                         Name:
                                         Title:

                                    HPSC EQUIPMENT RECEIVABLES 2000-1 LLC I

                                    By:  ________________________________
                                         Name:
                                         Title:

                                    HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II

                                    By:  ________________________________
                                         Name:
                                         Title:

<PAGE>   37

                                    EXHIBIT A

                          SUBSEQUENT TRANSFER AGREEMENT

     This Subsequent Transfer Agreement (this "Agreement"), dated as of
______________, is entered into among HPSC, Inc. ("HPSC"), a Delaware
corporation, as an originator (an "Originator"), AMERICAN COMMERCIAL FINANCE
CORPORATION ("ACFC"), a Delaware corporation as an originator (an "Originator",
and together with HPSC, the "Originators"), in its individual capacity, HPSC
BRAVO FUNDING CORP. ("Bravo" as a "Transferor" and together with HPSC and ACFC,
the "Subsequent Transferors"), a Delaware corporation, as a "Transferor", and
HPSC EQUIPMENT RECEIVABLES LLC I ("LLC I"), a Delaware limited liability company
and HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II ("LLC II"), a Delaware limited
liability company as issuers (each of LLC I and LLC II, an "Issuer", and
collectively, the "Issuers").

     Pursuant to this Agreement and the Receivables Transfer Agreement, dated as
of December 1, 2000 (the "Receivables Transfer Agreement"), among the
Originators, the Servicer, the Subsequent Transferors and the Issuers, the
parties hereto agree to the sale by [HPSC/ACFC] to [LLC I/LLC II] of the
Subsequent Contracts listed on the attached List of Subsequent Contracts
(hereinafter in this Agreement, the "Subsequent Contracts") and the Subsequent
Conveyed Assets related thereto, and the pledge of the Subsequent Contracts and
the Subsequent Conveyed Assets by [LLC I/LLC II] to the Indenture Trustee.

     Capitalized terms used and not defined herein have their respective
meanings as set forth in the definitions contained in Annex A to the Receivables
Transfer Agreement, which definitions are incorporated by reference herein. All
other capitalized terms used herein shall have the meanings specified herein.

     Section 1. Conveyance of Subsequent Contracts and Subsequent Conveyed
Assets.

         (a) Each of the Subsequent Transferors does hereby sell, assign, set
over and convey to LLC I and/or LLC II [specify applicable entity at time of
conveyance], without recourse, the Subsequent Contracts listed on the attached
Schedule 1A and Schedule 1B, respectively, and the Subsequent Conveyed Assets
related thereto, whether now existing or hereinafter arising, without recourse
(except as may be set forth in the Servicing Agreement).

         (b) The parties hereto intend that the transactions set forth herein
constitute a sale and an absolute assignment by HPSC and ACFC, as applicable, to
LLC I and/or LLC II on the Subsequent Transfer Date of all of HPSC's and ACFC's,
as applicable, respective right, title and interest in and to such Subsequent
Contracts and Subsequent Conveyed Assets. In the event the transactions set
forth herein shall be deemed not to be a sale and an absolute assignment, each
of the Subsequent Transferors hereby grants to LLC I and/or LLC II as of the
Subsequent Transfer Date a first priority perfected security interest in all of
each Subsequent Transferor's respective right, title and interest in, to and
under such Subsequent Contracts and Subsequent Conveyed Assets and all income
and proceeds thereof, to secure all of

<PAGE>   38

such Subsequent Transferor's obligations hereunder, and this Agreement shall
constitute a security agreement under applicable law, and in such event, the
parties hereto acknowledge that the Indenture Trustee, in addition to holding
the Subsequent Contracts and Subsequent Conveyed Assets for the benefit of the
Noteholders, holds the Subsequent Contracts and Subsequent Conveyed Assets as
assignee of LLC I and/or LLC II as secured party.

         (c) Annexed hereto is a List of Subsequent Contracts listing the
Contracts that constitute the Subsequent Contracts sold by HPSC and ACFC,
respectively, to LLC I and/or LLC II pursuant to this Agreement on the date
hereof.

     Section 2. Representations and Warranties; Conditions Precedent.

         (a) Each of the Subsequent Transferors hereby affirm the
representations and warranties set forth in Section 3.01(a), Section 3.01(b) and
Section 3.02 of the Receivables Transfer Agreement that relate to such
Transferor as of the date hereof.

         (b) Each of the Originators and the Servicer, as applicable, hereby
affirm (i) the representations and warranties set forth in Section 3.01(a) and
Section 3.01(b), respectively, as of the date hereof and (ii) that each
Subsequent Contract satisfies the representations and warranties set forth in
Section 3.02 of the Receivables Transfer Agreement relating to the Contracts,
which representations and warranties are herby re-made and incorporated by
reference as if fully set forth herein.

         (c) Each of the Subsequent Transferors is solvent, is able to pay its
debts as they become due and has capital sufficient to carry on its business and
its obligations hereunder; each such Subsequent Transferor will not be rendered
insolvent by the execution and delivery of this Agreement or by the performance
of its respective obligations hereunder nor is it aware of any pending
insolvency; no petition of bankruptcy (or similar insolvency proceeding) has
been filed by or against any of the Subsequent Transferors prior to the date
hereof.

         (d) All terms and conditions of the Receivables Transfer Agreement are
hereby ratified and confirmed; provided, however, that in the event of any
conflict the provisions of this Agreement shall control over the conflicting
provisions of the Receivables Transfer Agreement.

         (e) Each of the Subsequent Transferors, the Servicer and each of the
Originators hereby confirm that each of the conditions precedent set forth in
Sections 2.02(c) and 5.02 of the Receivables Transfer Agreement have been
satisfied as of the date hereof.

         (f) Each of the Subsequent Transferors, the Servicer and each of the
Originators represent and warrant that the aggregate Discounted Contract Balance
and the outstanding Revolver Balance of the Subsequent Contracts listed on the
List of Subsequent Contracts annexed hereto and sold to LLC I and/or LLC II
pursuant to this Agreement as of the related Subsequent Cut-Off Date is
$__________.

     Section 3. Grant from LLC II to Indenture Trustee. LLC I and/or LLC II
hereby grants, as of the Subsequent Transfer Date, to the Indenture Trustee for
the benefit of the

                                      -2-
<PAGE>   39

Noteholders to secure all of LLC I and/or LLC II's obligations under the
Indenture, a security interest in all of LLC I and/or LLC II's right, title and
interest in and to, whether now existing or hereafter created, (a) the
Subsequent Contracts and the Subsequent Conveyed Assets; (b) all funds on
deposit from time to time in the Lockbox Account and the Collection Account
allocable to the Subsequent Contracts and the Subsequent Conveyed Assets; (c)
all its rights under this Agreement; and (d) all present and future claims,
demands, causes and of 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 and all payments on
or under, and all proceeds of every kind and nature whatsoever in the conversion
thereof, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, checks,
deposit accounts, rights to payment of any and every kind, and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing.

     Section 4. Governing Law.

     THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, WITHOUT
GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

     Section 5. Waiver of Jury Trial. The Issuers, the Servicer, the Originators
and the Subsequent Transferors each hereby waive any right to have a jury
participate in resolving any dispute, sounding in contract, tort, or otherwise
arising out of, connected with, related to, or in connection with this
agreement. Instead, any dispute resolved in court will be resolved in a bench
trial without a jury.

     Section 6. Counterparts. This Agreement may be executed in one or more
counterparts and by the different parties hereto on separate counterparts, each
of which, when so executed, shall be deemed to be an original; such
counterparts, together, shall constitute one and the same instrument.

     Section 7. Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the Subsequent Transferors, the Originators, the
Servicer, the Issuers and their respective successors and permitted assigns.

     Section 8. Binding Effect; Third-Party Beneficiaries. This Agreement will
inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. The Indenture Trustee and the
Noteholders are intended and express third party beneficiaries of this
Agreement.

     Section 9. No Bankruptcy Petition Against the Transferors or the Issuers.
Each of the parties hereto agrees that, prior to the date that is one year and
one day after the payment in full of the latest maturing Notes issued by the
Issuers, it will not institute against any of Bravo or the Issuers, or join any
other Person in instituting against any of the Subsequent Transferors or the
Issuers, any bankruptcy, reorganization, arrangement, insolvency or

                                      -3-
<PAGE>   40

liquidation proceedings or other proceedings under the laws of the United States
or any state of the United States. This Section 9 shall survive the termination
of this Agreement.

                                      -4-
<PAGE>   41

               IN WITNESS WHEREOF, the parties hereto have executed and
delivered this Subsequent Transfer Agreement as of the day and year first
written above.

                                    HPSC, INC.

                                    By:  ________________________________
                                         Name:
                                         Title:

                                    AMERICAN COMMERCIAL FINANCE CORPORATION

                                    By:  ________________________________
                                         Name:
                                         Title:

                                    [HPSC BRAVO FUNDING CORP.]

                                 [If applicable]
                                    By:  ________________________________
                                         Name:
                                         Title:

                                      -5-
<PAGE>   42

                                         HPSC EQUIPMENT RECEIVABLES 2000-1 LLC I

                                    By:  ________________________________
                                         Name:
                                         Title:

                                    HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II

                                    By:  ________________________________
                                         Name:
                                         Title:

                                      -6-
<PAGE>   43

                             SCHEDULE I to EXHIBIT A

                          LIST OF SUBSEQUENT CONTRACTS

<PAGE>   44

                                   SCHEDULE 1

                            LIST OF INITIAL CONTRACTS<PAGE>   1
                                                                   EXHIBIT 10.53

================================================================================
                                    INDENTURE

                                  by and among

                     HPSC EQUIPMENT RECEIVABLES 2000-1 LLC I
                                       and
                    HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II

                                   as Issuers,

                                   HPSC, INC.

                                  as Servicer,

                                   HPSC, INC.

                                       and

                     AMERICAN COMMERCIAL FINANCE CORPORATION

                                 as Originators,

                                       and

                            BNY MIDWEST TRUST COMPANY

                              as Indenture Trustee

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

                          Dated as of December 1, 2000

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

                     HPSC EQUIPMENT RECEIVABLES 2000-1 LLC I

                                       and

                    HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II

                 Equipment Contract Backed Notes, Series 2000-1
================================================================================
<PAGE>   2
                                TABLE OF CONTENTS
                                                                            Page
                                                                            ----

ARTICLE I       DEFINITIONS....................................................1

     Section 1.01  Definitions.................................................1
     Section 1.02  General Interpretive Principles.............................1

ARTICLE II      PLEDGE OF PLEDGED PROPERTY; ORIGINAL ISSUANCE OF
                NOTES..........................................................2

     Section 2.01  Pledge of Pledged Property..................................2
     Section 2.02  Custodian On Behalf Of Indenture Trustee, Holds
                   Contracts and Contract Files................................2
     Section 2.03  Conditions to Closing.......................................4
     Section 2.04  Acceptance by Indenture Trustee.............................5
     Section 2.05  Liabilities of the Issuers and Parties to this
                   Indenture; Limitations Thereon..............................5
     Section 2.06  Intended Tax Characterization...............................6
     Section 2.07  Treasury Securities.........................................6

ARTICLE III     ACCOUNTS; ALLOCATION AND APPLICATION OF THE PLEDGED
                PROPERTY.......................................................6

     Section 3.01  Collection Account..........................................6
     Section 3.02  Pre-Funding Account and Capitalized Interest
                   Account.....................................................8
     Section 3.03  Investment of Monies Held in the Accounts;
                   Subaccounts.................................................9
     Section 3.04  Disbursements From Collection Account......................11
     Section 3.05  Reserve Account............................................16
     Section 3.06  Residual Payment Account...................................16
     Section 3.07  Statements to Noteholders..................................17
     Section 3.08  Compliance With Withholding Requirements...................19
     Section 3.09  Purchases of Future Fundings on Revolving Loans............20

ARTICLE IV      REMOVAL OF NON-CONFORMING PLEDGED PROPERTY;
                SUBSTITUTION OF CONTRACTS.....................................20

     Section 4.01  Removal of Non-Conforming Pledged Property.................20
     Section 4.02  Substitution of Contracts..................................21
     Section 4.03  Release of Property from the Pledged Property..............22

ARTICLE V       THE NOTES.....................................................23

     Section 5.01 The Notes...................................................23
     Section 5.02 Initial Issuance of Notes...................................24
     Section 5.03 Global Notes................................................24
     Section 5.04 Definitive Notes............................................25
     Section 5.05 Registration, Transfer and Exchange of Notes................26
     Section 5.06 Mutilated, Destroyed, Lost or Stolen Notes..................30
     Section 5.07 Persons Deemed Owners.......................................30
     Section 5.08 Access to List of Noteholders' Names and Addresses..........31

                                      (i)
<PAGE>   3
     Section 5.09 Acts of Noteholders.........................................31
     Section 5.10 No Proceedings; Limited Recourse............................31

ARTICLE VI      THE ISSUERS...................................................32

     Section 6.01  Liability of the Issuers...................................32
     Section 6.02  Limitation on Recourse to the Issuers......................32
     Section 6.03  Indemnity for Liability Claims.............................32
     Section 6.04  Liabilities................................................32
     Section 6.05  Annual Statement as to Compliance..........................32
     Section 6.06  Payment of Principal and Interest..........................33
     Section 6.07  Maintenance of Office or Agency............................33
     Section 6.08  Money for Payments to be Held in Trust.....................33
     Section 6.09  Existence..................................................34
     Section 6.10  Protection of Pledged Property.............................34
     Section 6.11  Performance of Obligations; Servicing of
                   Receivables................................................36
     Section 6.12  Negative Covenants.........................................36
     Section 6.13  Issuers May Consolidate, Etc. Only on Certain
                   Terms......................................................37
     Section 6.14  Successor or Transferee....................................39
     Section 6.15  No Other Business..........................................39
     Section 6.16  No Borrowing...............................................39
     Section 6.17  Guarantees, Loans, Advances and Other Liabilities..........39
     Section 6.18  Capital Expenditures.......................................40
     Section 6.19  Separate Legal Identity....................................40
     Section 6.20  Management.................................................40
     Section 6.21  Business Decisions.........................................40
     Section 6.22  Compliance with Laws.......................................40
     Section 6.23  Further Instruments and Acts...............................40
     Section 6.24  Nonconsolidation...........................................40
     Section 6.25  Protection of  Security Interest in Trust Estate...........41
     Section 6.26  Transfers Between Issuers..................................43
     Section 6.27  Issuer to Provide Documents to Luxembourg Paying
                   and Transfer Agent.........................................43

ARTICLE VII     THE INDENTURE TRUSTEE.........................................43

     Section 7.01  Duties of Indenture Trustee................................43
     Section 7.02  Eligible Investments.......................................45
     Section 7.03  Indenture Trustee's Assignment of Contracts................46
     Section 7.04  Certain Matters Affecting the Indenture Trustee............46
     Section 7.05  Indenture Trustee Not Liable for Notes or Contracts........47
     Section 7.06  Indenture Trustee May Own Notes............................48
     Section 7.07  Indenture Trustee's Fees and Expenses......................48
     Section 7.08  Eligibility Requirements for Indenture Trustee.............49
     Section 7.09  Resignation or Removal of Indenture Trustee................49
     Section 7.10  Successor Indenture Trustee................................50
     Section 7.11  Merger or Consolidation of Indenture Trustee...............50
     Section 7.12  Appointment of Co-Indenture Trustee or Separate
                   Indenture Trustee..........................................51

                                      (ii)
<PAGE>   4
     Section 7.13  Indenture Trustee May Enforce Claims Without
                   Possession of Note.........................................52
     Section 7.14  Suits for Enforcement......................................52
     Section 7.15  Undertaking for Costs......................................53
     Section 7.16  Representations and Warranties of Indenture Trustee........53
     Section 7.17  Tax Returns................................................53
     Section 7.18  Securities Accounts........................................54
     Section 7.19  "Financial Assets" Election................................54
     Section 7.20  Entitlement Orders.........................................54

ARTICLE VIII    EVENTS OF DEFAULT; REMEDIES...................................54

     Section 8.01  Events of Default..........................................54
     Section 8.02  Acceleration of Maturity, Rescission and Annulment.........56
     Section 8.03  Remedies...................................................57
     Section 8.04  Notice of Event of Default.................................57
     Section 8.05  Exercise of Power by Indenture Trustee.....................58
     Section 8.06  Indenture Trustee May File Proofs of Claim.................58
     Section 8.07  Allocation of Money Collected..............................58
     Section 8.08  Waiver of Events of Default................................60
     Section 8.09  Limitation On Suits........................................60
     Section 8.10  Unconditional Right of Noteholders to Receive
                   Principal and Interest.....................................61
     Section 8.11  Restoration of Rights and Remedies.........................61
     Section 8.12  Rights and Remedies Cumulative.............................61
     Section 8.13  Delay or Omission Not Waiver...............................61
     Section 8.14  Control by Majority Holders................................62
     Section 8.15  Sale of Pledged Property...................................62
     Section 8.16  Action on Notes............................................62
     Section 8.17  Certain Rights of the Holders of the Subordinate
                   Notes......................................................63

ARTICLE IX      TERMINATION...................................................63

     Section 9.01  Optional Redemption of Notes; Final Disposition
                   of Funds...................................................63

ARTICLE X       Noteholders' Lists and Reports................................64

     Section 10.01 Note Registrar To Furnish To Indenture Trustee
                   Names and Addresses of Noteholders.........................64
     Section 10.02 Preservation of Information................................64
     Section 10.03 Compliance Certificates and Opinions, etc..................64

ARTICLE XI      THE SWAP AGREEMENT............................................65

     Section 11.01     Amounts Received.......................................65
     Section 11.02     Swap Counterparty Downgrade Event......................65

ARTICLE XII     MISCELLANEOUS PROVISIONS......................................66

     Section 12.01 Amendment..................................................66
     Section 12.02 Limitation on Rights of Noteholders........................66
     Section 12.03 Counterparts...............................................67

                                     (iii)
<PAGE>   5
     Section 12.04 Governing Law..............................................67
     Section 12.05 Notices....................................................67
     Section 12.06 Waiver of Jury Trial.......................................68
     Section 12.07 Severability of Provisions.................................68
     Section 12.08 Assignment.................................................68
     Section 12.09 Binding Effect.............................................68
     Section 12.10 Survival of Agreement......................................68
     Section 12.11 Captions...................................................69
     Section 12.12 Annexes and Exhibits.......................................69
     Section 12.13 Calculations...............................................69
     Section 12.14 No Proceedings.............................................69

Exhibits

Exhibit A  -   Form of Wiring Instructions
Exhibit B  -   Forms of Notes
Exhibit C  -   Form of Transferee Certification (144A)
Exhibit D  -   Form of Transferee Certification (QIB)
Exhibit E  -   Form of Substitute Transfer Agreement
Exhibit F  -   Investor Representation Letter
Exhibit G  -   Form of Transfer Certificate for Rule 144A Global Notes to
               Regulation S Global Notes during Restricted Period
Exhibit H  -   Form of Transfer Certificate for Rule 144A Global Notes to
               Regulation S Global Notes after Restricted Period
Exhibit I  -   Form of Transfer Certificate for Regulation S Global Notes to
               Rule 144A Global Note during Restricted Period
Exhibit J  -   Form of Transfer Certificate for Regulation S Global Notes during
               Restricted Period

Annex A    -   Defined Terms

                                      (iv)
<PAGE>   6
            This INDENTURE, dated as of December 1, 2000, is made by and among
HPSC Equipment Receivables 2000-1 LLC I and HPSC Equipment Receivables 2000-1
LLC II, each a Delaware limited liability company, as issuers (each an "Issuer",
and collectively, the "Issuers"), HPSC, Inc., a Delaware corporation ("HPSC"),
as servicer (the "Servicer"), HPSC and American Commercial Finance Corporation,
a Delaware corporation, as originators (each an "Originator", and collectively,
the "Originators"), and BNY Midwest Trust Company, an Illinois corporation, not
in its individual capacity but solely as indenture trustee (the "Indenture
Trustee").

                                   WITNESSETH:

            In consideration of the mutual agreements herein contained, and of
other good and valuable consideration the receipt and adequacy of which are
hereby acknowledged, the parties agree as follows:

                                   ARTICLE I

                                  DEFINITIONS

            Section 1.01 Definitions. Capitalized terms used and not defined
herein shall have the meanings specified in Annex A hereto.

            Section 1.02 General Interpretive Principles. For purposes of this
Indenture except as otherwise expressly provided or unless the context otherwise
requires:

            (a)   the terms defined in this Indenture have the meanings assigned
to them in this Indenture and include the plural as well as the singular, and
the use of any gender herein shall be deemed to include the other gender;

            (b)   accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP as in effect on the date
hereof;

            (c)   references herein to "Articles", "Sections", "Subsections",
"Paragraphs" and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subdivisions of
this Indenture;

            (d)   a reference to a Subsection without further reference to a
Section is a reference to such Subsection as contained in the same Section in
which the reference appears, and this rule shall also apply to Paragraphs and
other subdivisions;

            (e)   the words "herein", "hereof", "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
provision; and

            (f)   the term "include" or "including" shall mean without
limitation by reason of enumeration.

<PAGE>   7
                                   ARTICLE II

             PLEDGE OF PLEDGED PROPERTY; ORIGINAL ISSUANCE OF NOTES

            Section 2.01 Pledge of Pledged Property. Each of the Issuers,
simultaneously with the execution and delivery of this Indenture and upon each
execution and delivery of each Subsequent Transfer Agreement, hereby pledges,
deposits, transfers, assigns, and otherwise grants to the Indenture Trustee,
without recourse (except as otherwise expressly set forth herein), to be held in
trust for the benefit of the Noteholders as provided in this Indenture, all of
its respective right, title, and interest in, to and under (a) the Equipment,
(except for any licensed products that may accompany the Equipment) and any new
unit or units of Equipment substituted for any existing unit or units of
Equipment and all other Collateral, including all income and proceeds upon any
sale, re-leasing, rental or other disposition of the Equipment and other
Collateral, (b) the Contracts, all renewals and extensions thereof and all
amendments, additions and supplements including schedules, summary schedules and
subschedules made or hereafter made with respect thereto, (c) all monies
received by the Servicer or due in payment of the Contracts on or after the
related Cut-Off Date, including, without limitation, all Scheduled Payments
thereunder (whether or not due), Advance Payments received by the Servicer prior
to the related Cut-Off Date but not due until a Collection Period after such
Cut-Off Date, any Prepayments, any payments in respect of a casualty or early
termination and any Liquidation Proceeds received with respect thereto, (d) any
guarantees, letters of credit, surety bonds or other credit enhancement of an
Obligor's obligations under each such Contract, (e) the related Contract Files,
(f) any Insurance Policies and Insurance Proceeds with respect to the Contracts,
(g) the Receivables Transfer Agreement, each Subsequent Transfer Agreement and
the Servicing Agreement, each as executed and delivered in accordance therewith,
(h) the Collection Account, the Pre-Funding Account, the Capitalized Interest
Account, the Residual Payments Account and the Reserve Account and all amounts
on deposit therein and all amounts collected in the Lockbox Account related to
the Contracts and (i) any and all income and proceeds of any of the foregoing
(all of the foregoing, collectively, constituting the "Pledged Property").

            This Indenture is a security agreement within the meaning of Article
8 and Article 9 of the Uniform Commercial Code as in effect in the States of New
York and Delaware. The pledge provided for in this Section 2.01 is intended by
each of the Issuers to be a grant by the Issuers to the Indenture Trustee, for
the benefit of the Noteholders, of a valid first priority security interest in
all of its respective right, title and interest in, to and under the Pledged
Property.

            Section 2.02 Custodian On Behalf Of Indenture Trustee, Holds
Contracts and Contract Files. The executed original counterpart of each
Contract, together with the other documents or instruments, which constitute a
part of a Contract File, shall be held by the Custodian on behalf of the
Indenture Trustee for the benefit of the Noteholders. The Contract File for each
Contract pledged hereunder shall be delivered by or on behalf of the Issuers to
the Custodian at least two Business Days prior to (i) the Closing Date, with
respect to the Initial Contracts, (ii) the applicable Subsequent Transfer Date,
with respect to the Subsequent Contracts and (iii) the applicable Substitute
Transfer Date. The Indenture Trustee shall review a random sample of 1,700
Contract Files prior to the Closing Date and shall issue a certificate (the
"Trustee Certification") no later than the Closing Date, evidencing (i) that
each such Contract

                                      -2-
<PAGE>   8
File contained (a) in the case of a Lease, an original lease agreement and, in
the case of Equipment with an original equipment cost of $5,000 or more, a
financing statement related to the applicable Equipment and naming the lessee as
the debtor and the Originator as the secured party and an original of each
guarantee, assumption, modification or substitution agreement, if any, which
relates to the related Contract (or copy thereof certified by an officer of the
related Originator to be a true, complete and correct copy); unless each filing
is an electronic filing, in which case evidence of such electronic filing shall
be sufficient, and, with respect to 100 Leases, a financing statement describing
the related Equipment which matches the description of such Equipment in the
related Lease, (b) in the case of a Contract which is not a Lease, an original
promissory note, executed by the related Obligor for such Contract, an original
related loan agreement (or a copy thereof certified (which may be a blanket
certification) by an authorized officer of the related Originator, to be a true,
complete and correct copy of such loan agreement), a financing statement related
to the applicable Collateral and naming the Obligor as the debtor and the
Originator as the secured party (unless each filing is an electronic filing, in
which case evidence of such electronic filing shall be sufficient) and an
original of each guarantee, assumption, modification or substitution agreement,
if any, which relates to the related Contract (or copy thereof certified by an
officer of the related Originator to be a true, complete and correct copy) (the
items in clause (a) and (b) collectively, the "Required Contract File Items")
and (ii) each such item has not been mutilated, torn or otherwise destroyed.
Within 45 days after the Closing Date, the Indenture Trustee shall review the
remainder of the Contract Files and on or prior to such 45th day, issue a
Trustee Certification evidencing (i) in the case of a Contract which is not a
Lease, that the original promissory note executed by the related Obligor for
such Contract is endorsed in blank (either directly on the promissory note or on
an allonge affixed thereto), by an authorized officer of the Originator and
showing a complete chain of endorsements from the original payee of the
promissory note to the Indenture Trustee: "Pay to the order of ____________,
without recourse", (ii) with respect to each Contract which is a Lease, a
financing statement describing the related Equipment which matches the
description of such Equipment in the related Lease, (iii) its review of each
Contract File and that each Contract File contained the Required Contract File
Items and (ii) each such item has not been mutilated, torn or otherwise
destroyed. Within 30 days after the end of the Pre-Funding Period, the Indenture
Trustee shall review the Contract Files pledged to the Indenture Trustee for the
benefit of the Noteholders on each Subsequent Transfer Date and issue a Trustee
Certification evidencing (i) its review of each such Contract File and that each
such Contract File contained the Required Contract File Items and (ii) each such
item has not been mutilated, torn or otherwise destroyed. Within 20 days after
each Substitute Transfer Date, the Indenture Trustee shall review the Contract
Files pledged to the Indenture Trustee for the benefit of the Noteholders on
such Substitute Transfer Date and issue a Trustee Certification evidencing (i)
its review of each such Contract File and that each such Contract File contained
the Required Contract File Items and (ii) each such item has not been mutilated,
torn or otherwise destroyed. The Custodian, on behalf of the Indenture Trustee
shall at all times maintain possession of each Contract File on behalf of the
Noteholders in accordance with its customary custodial policies and procedures
and shall only release Contract Files to, or at the direction of, the Servicer
in accordance with Section 3.01 of the Servicing Agreement. The Indenture
Trustee shall not be liable with respect to any action taken or omitted to be
taken by the Custodian with respect to the Contract Files under the Transaction
Documents and each of the Noteholders, the Originators, the Servicer, the
Issuers and the Transferors hereby releases, waives, discharges, exculpates and

                                      -3-
<PAGE>   9
covenants not to sue the Indenture Trustee for any action taken or omitted to be
taken by the Custodian with respect to the Contract Files.

            Section 2.03 Conditions to Closing. As conditions to the execution
and delivery of the Notes by the Issuers, the authentication of the Notes by the
Indenture Trustee and the sale of the Notes by the Issuers, in each case, on the
Closing Date, (i) the Issuers shall have received by wire transfer the net
proceeds of sale of the Class A Notes, the Class B1 Notes, the Class B2 Notes,
the Class C Notes, the Class D Notes, the Class E Notes, the Class F Notes and
the VFN Notes in authorized denominations equal in the aggregate to the Initial
Note Principal Balance of the Class A Notes, the Class B1 Notes, the Class B2
Notes, the Class C Notes, the Class D Notes, the Class E Notes, the Class F
Notes and the VFN Notes, respectively, and (ii) the Indenture Trustee shall have
received the following on or before the Closing Date:

            (a)   The List of Initial Contracts, certified by the Chairman, any
Senior Vice President, any Vice President or any Assistant Vice President of the
Servicer, which list shall include Contracts with an Aggregate Outstanding
Contract Balance as of the Initial Cut-Off Date which, when added to the
Original Pre-Funded Amount, equals or exceeds the Aggregate Initial Note
Principal Balance;

            (b)   Secretary's Certificates for each of the Transferors, each of
the Issuers, the Servicer and each of the Originators certifying to, and
attaching, the following (i) the organizational and governing documents of the
respective entity, (ii) resolutions authorizing each such entity to execute,
deliver and perform the Transaction Documents to which it is a party and the
transactions contemplated thereby and (iii) officially certified good standing
certificates for each such entity from their respective states of organization;

            (c)   Copies of the duly executed Financing Statements with respect
to the Contracts, in accordance with the Filing Requirements, duly prepared for
filing;

            (d)   A certificate listing the Servicing Officers as of the Closing
Date;

            (e)   Executed originals of each of the Transaction Documents;

            (f)   A Custody Receipt, duly executed by the Custodian, with
respect to the Contract File for each Initial Contract on the List of Initial
Contracts;

            (g)   A Trustee Certification, duly executed by the Indenture
Trustee;

            (h)   All Necessary Consents;

            (i)         (A) A letter from Moody's that it has assigned a rating
                  of (1) "Aaa" to the Class A Notes, (2) "Aa3" to the Class B1
                  Notes, (3) "Aa3" to the Class B2 Notes, (4) "A3" to the Class
                  C Notes, (5) "Baa3" to the Class D Notes, (6) "Ba2" to the
                  Class E Notes and (7) B1 to the Class F Notes;

                        (B) A letter from S&P that it has assigned a rating of
                  "AAA" to the Class A Notes; and

                                      -4-
<PAGE>   10
                        (C) A letter from Fitch that it has assigned a rating of
                  (1) "AAA" to the Class A Notes, (2) "AA" to the Class B1
                  Notes, (3) "AA" to the Class B2 Notes, (4) "A" to the Class C
                  Notes, (5) "BBB" to the Class D Notes and (6) "BB" to the
                  Class E Notes;

            (j)   Opinions of Counsel to the Originators, the Servicer, the
Transferors and the Issuers, in form and substance reasonably acceptable to the
Indenture Trustee and the Noteholders, covering such matters as the Indenture
Trustee and the Noteholders may reasonably request, including, without
limitation, customary opinions concerning non-consolidation, true sale, security
interest, federal tax and general corporate matters.

            Section 2.04 Acceptance by Indenture Trustee. The Indenture Trustee
acknowledges its acceptance, simultaneously with the execution and delivery of
this Indenture, of all right, title and interest in and to the Pledged Property
on behalf of the Noteholders and declares that the Indenture Trustee holds and
will hold such right, title and interest for the benefit of all present and
future Noteholders for the use and purpose and subject to the terms and
provisions of this Indenture. The Issuers hereby (a) appoint the Indenture
Trustee as each of the Issuer's agent and attorney-in-fact with all power
independently to enforce all of its rights against the Originators, the Servicer
and the Transferors hereunder, under the Receivables Transfer Agreement and
under the Servicing Agreement, as applicable, and (b) directs the Indenture
Trustee to enforce such rights upon the failure of the Issuers or the Servicer,
respectively, to do so in accordance with the Receivables Transfer Agreement and
the Servicing Agreement, as applicable. The Indenture Trustee hereby accepts
such appointment and agrees to enforce such rights in accordance with the
foregoing.

            Section 2.05 Liabilities of the Issuers and Parties to this
Indenture; Limitations Thereon. (a) Except as otherwise expressly provided
herein, the obligations evidenced by the Notes provide recourse only to the
Pledged Property and provide no recourse against the Originators, the
Transferors, the Servicer, the Indenture Trustee or the Custodian.

            (b)   Neither the Originators, the Issuers, the Transferors, the
Servicer, the Custodian nor any other Person shall be liable to the Indenture
Trustee or the Noteholders, except as provided in the Transaction Documents.
Without limiting the generality of the foregoing, if any Obligor fails to pay
any Scheduled Payment, Final Scheduled Payment or other amounts due under a
Contract, then neither the Indenture Trustee, nor the Noteholders will have any
recourse against the Originators, the Servicer, the Issuers or the Transferors
for such Scheduled Payment, Final Scheduled Payment, other amounts due under the
Contract or any losses, damages, claims, liabilities or expenses incurred by the
Indenture Trustee or any Noteholder as a direct or indirect result thereof,
except as may be provided for in the Transaction Documents.

            (c)   In the event of a default by an Obligor under the terms of a
Contract, which default is not cured within any applicable cure period set forth
in such Contract, the Indenture Trustee and the Noteholders shall be expressly
limited to the sources of payment specified herein. In addition, the Indenture
Trustee shall have the right to exercise the rights of each of the Originators,
as applicable, under the Contracts, the Insurance Policies and any document in
any Contract File in the name of the Indenture Trustee and the Noteholders,
either

                                      -5-
<PAGE>   11
directly or through the Servicer as agent, and the Indenture Trustee is hereby
directed by the Issuers to exercise such rights; provided, however, that the
Indenture Trustee shall not be required to take any action pursuant to this
Section 2.05(c) except upon written instructions from the Servicer or the
Majority Holders, if, in the judgment of the Majority Holders, the Servicer is
otherwise unable to enforce such rights on behalf of the Indenture Trustee or
unless a Servicer Termination Event has occurred and is continuing. The parties
hereby agree that a carbon, photographic or other reproduction of this Indenture
or any financing statement shall be sufficient as a financing statement in any
State.

            (d)   The pledge of the Pledged Property by the Issuers pursuant to
this Indenture does not constitute and is not intended to result in an
assumption by the Indenture Trustee, the Issuers or any Noteholder of any
obligation (except for the obligation not to disturb an Obligor's right of quiet
enjoyment) of the Originators or the Servicer to any Obligor or other Person in
connection with the Equipment, other collateral, the Contracts, the Insurance
Policies or any document in the Contract Files.

            Section 2.06 Intended Tax Characterization. The parties hereto agree
that it is their mutual intent that, for all applicable tax purposes, the Notes
will constitute indebtedness. Further, each party hereto and each Noteholder (by
receiving and holding a Note), hereby covenants to every other party hereto and
to every other Noteholder to treat the Notes as indebtedness for all applicable
tax purposes in all tax filings, reports and returns and otherwise, and further
covenants that neither it nor any of its Affiliates will take, or participate in
the taking of or permit to be taken, any action that is inconsistent with the
treatment of the Notes as indebtedness for tax purposes unless otherwise
directed by law, rule or regulation or order of any Governmental Authority. All
successors and assigns of the parties hereto shall be bound by the provisions
hereof.

            Section 2.07 Treasury Securities. In determining whether the
Noteholders of the required outstanding principal balance of the Notes have
concurred in any direction, waiver or consent, Notes owned by either of the
Originators, the Servicer, any of the Transferors, either of the Issuers, any
other obligor upon the Notes or an Affiliate of either of the Originators shall
be considered as though not outstanding.

                                  ARTICLE III

          ACCOUNTS; ALLOCATION AND APPLICATION OF THE PLEDGED PROPERTY

            Section 3.01 Collection Account. (a) The Servicer shall establish
and maintain with the Indenture Trustee the Collection Account for the benefit
of the Noteholders as an Eligible Bank Account, in the name of "HPSC Equipment
Receivables 2000-1 LLC I and HPSC Equipment Receivables 2000-1 LLC II Equipment
Contract Backed Notes, Series 2000-1 Collection Account, in trust for the
registered holders of Equipment Contract Backed Notes, Series 2000-1." The
Collection Account shall be a segregated, non-interest bearing trust account.
The Servicer shall establish two sub-accounts of the Collections Account,
Collection Sub-Account A and Collection Sub-Account B. The Servicer shall
deposit all Collections received in respect of Contracts held by LLC I into
Collection Sub-Account A and all Collections received in respect of Contracts
held by LLC II into Collection Sub-Account B. The

                                      -6-
<PAGE>   12
Indenture Trustee shall make withdrawals from the Collection Account only as
provided in this Indenture in amounts specified in a written direction of the
Servicer, unless an Event of Default shall have occurred and be continuing, in
which event the Indenture Trustee shall withdraw amounts and apply funds
therefrom as provided by Article VIII hereof. The Indenture Trustee shall
possess all right, title and interest in all funds on deposit from time to time
in the Collection Account and all proceeds thereof. The Collection Account shall
be under the sole dominion and control of the Indenture Trustee for the benefit
of the Noteholders.

            (b)   At the times indicated in this Section 3.01(b) or in Section
3.01(c) below, the following amounts (net of Excluded Amounts and the Custodian
Fee) shall be deposited in the Collection Account in immediately available
funds:

                  (i)   The Servicer shall deposit or cause to be deposited the
      aggregate amount of Collections;

                  (ii)  The Servicer shall deposit the aggregate Servicer
      Advances payable pursuant to Section 4.03 of the Servicing Agreement;

                  (iii) The Servicer shall deposit any Purchase Amounts payable
      by it or by the Originator pursuant to Section 4.01 hereof;

                  (iv)  Investment Earnings (excluding Pre-Funding Earnings and
      Capitalized Interest Earnings), as described in Section 3.03(a) hereof;

                  (v)   The Indenture Trustee shall transfer from the
      Capitalized Interest Account the Capitalized Interest Requirement, if any,
      with respect to each Payment Date occurring during the Pre-Funding Period;
      and

                  (vi)  The Indenture Trustee shall transfer from the Reserve
      Account and the Residual Payment Account the amounts required pursuant to
      Sections 3.05 and 3.06 hereof, respectively.

            (c)   The Servicer shall so transfer the aggregate amount of
Collections into Collection Sub-Account A and Collection Sub-Account B, as
applicable, no later than two Business Days after the earlier of receipt of such
amounts in the Lockbox Account or the Servicer's receipt of such amount. The
Servicer shall so deposit into Collection Sub-Account A and Collection
Sub-Account B, as applicable, the aggregate amount of Servicer Advances no later
than the Determination Date immediately preceding each Payment Date. Except as
otherwise expressly set forth in this Indenture, any other deposits and
transfers of funds to be made pursuant to this Section 3.01 shall be made no
later than the third Business Day immediately preceding the related Payment
Date.

            Notwithstanding the foregoing, the Servicer may deduct from amounts
otherwise payable to the Collection Account amounts previously deposited by the
Servicer into the Collection Account but (i) subsequently uncollectable as a
result of dishonor of the instrument of payment for or on behalf of the Obligor
or (ii) later determined to have resulted from mistaken deposits, including
mistaken deposits of Excluded Amounts.

                                      -7-
<PAGE>   13
            Section 3.02 Pre-Funding Account and Capitalized Interest Account.
(a) The Indenture Trustee shall establish and maintain the Pre-Funding Account
as one or more segregated, non-interest bearing trust accounts in the name of
"Equipment Contract Backed Notes, Series 2000-1 Pre-Funding Account, in trust
for the registered holders of Equipment Contract Backed Notes, Series 2000-1."
The Indenture Trustee will make or permit withdrawals from the Pre-Funding
Account only as provided in this Indenture in amounts specified in a written
direction of the Servicer. On the Closing Date, the Indenture Trustee will
deposit from the proceeds of the sale of the Notes, the Original Pre-Funded
Amount in the Pre-Funding Account. At least one Business Day prior to each
Subsequent Transfer Date, the Servicer, on behalf of LLC I or LLC II, as the
case may be, shall instruct the Indenture Trustee in writing to withdraw from
the Pre-Funding Account and release to LLC II an amount equal to the aggregate
Discounted Contract Balance (in the case of Contracts which are not Revolving
Loans) and Outstanding Revolver Balance (in the case of Revolving Loans) of the
Subsequent Contracts to be transferred to LLC II as of the Subsequent Cut-Off
Date upon satisfaction of each of the conditions set forth in Section 2.02 of
the Receivables Transfer Agreement with respect to the transfer of Subsequent
Contracts to LLC II. In addition, on or prior to each Payment Date, all
Pre-Funding Earnings with respect to such Payment Date shall be transferred to
the Capitalized Interest Account prior to the withdrawal of the Capitalized
Interest Requirement from the Capitalized Interest Account. Any amount remaining
on deposit in the Pre-Funding Account at the end of the Pre-Funding Period, less
any undistributed Pre-Funding Earnings, shall be distributed by the Indenture
Trustee on the Payment Date immediately following the end of the Pre-Funding
Period to the Noteholders as a prepayment of principal in accordance with
Section 3.04(b). In the event of such prepayment, the Indenture Trustee shall
notify the Luxembourg Paying and Transfer Agent of such prepayment and request
the Luxembourg Paying and Transfer Agent to publish a notice of such prepayment
in the Luxemberger Wort. In the event the Luxemberger Wort is unavailable, the
Indenture Trustee shall request the Luxembourg Paying and Transfer Agent to
publish such notice in another newspaper of general circulation in Luxembourg.

            (b)   The Indenture Trustee shall establish and maintain the
Capitalized Interest Account as one or more segregated, non-interest bearing
trust accounts in the name of "HPSC Equipment Receivables 2000-1 LLC I and HPSC
Equipment Receivables 2000-1 LLC II Equipment Contract Backed Notes, Series
2000-1 Capitalized Interest Account, in trust for the registered holders of
Equipment Contract Backed Notes, Series 2000-1." The Indenture Trustee shall
make or permit withdrawals from the Capitalized Interest Account only as
provided in this Indenture in amounts specified in a written direction of the
Servicer. On the Closing Date, the Indenture Trustee will deposit from the
proceeds of the sale of the Notes, the Capitalized Interest Account Deposit in
the Capitalized Interest Account. On each Payment Date occurring during the
Pre-Funding Period only, the Indenture Trustee shall transfer from the
Capitalized Interest Account into the Collection Account the Capitalized
Interest Requirement, if any, for such Payment Date. If on any Payment Date the
amount on deposit in the Capitalized Interest Account exceeds the Capitalized
Interest Required Reserve Amount, the Indenture Trustee will distribute such
excess to the Issuers in accordance with their respective percentage ownership
interests of the Contracts, as specified in the Monthly Statement. Any amount
remaining on deposit in the Capitalized Interest Account on the Payment Date
immediately following the end of the Pre-Funding Period (after taking into
account any transfer to be made from the Capitalized Interest Account into the
Collection Account on such Payment Date) shall be released by the

                                      -8-
<PAGE>   14
Indenture Trustee to the Issuers in accordance with their respective percentage
ownership interests of the Contracts, and the Capitalized Interest Account shall
thereafter be closed.

            Section 3.03 Investment of Monies Held in the Accounts; Subaccounts.
(a) The Servicer shall direct the Indenture Trustee in writing to invest the
amounts in each Account in Eligible Investments that mature not later than the
earlier of (i) the Business Day immediately preceding the next Payment Date
following the investment of such amounts or (ii) the day on which funds are
required to be transferred from such Account to the Collection Account in
respect of such Payment Date. Eligible Investments shall not be sold or disposed
of prior to their maturities. Investment Earnings on amounts held in the
Collection Account shall be deposited in the Collection Account as earned and
any losses shall be debited thereto.

            (b)   The Indenture Trustee and the Servicer may, from time to time
and in connection with the administration of any Account, establish and maintain
with the Indenture Trustee one or more sub-accounts of any of the Accounts,
including Collection Sub-Account A and Collection Sub-Account B.

            (c)   Any investment of funds in the Accounts shall be made in
Eligible Investments held by a financial institution in accordance with the
following requirements:

                  (vii) all Eligible Investments shall be held in an account
      with such financial institution in the name of the Indenture Trustee;

                  (viii) all Eligible Investments held in such accounts shall be
      delivered to the Indenture Trustee in the following manner:

                        (A)   with respect to bankers' acceptances, commercial
                  paper, negotiable certificates of deposit and other
                  obligations that constitute "instruments" within the meaning
                  of Section 9-105 (1)(i) of the UCC (other than certificated
                  securities) and are susceptible of physical delivery,
                  transferred to the Indenture Trustee by physical delivery to
                  the Indenture Trustee, indorsed to, or registered in the name
                  of, the Indenture Trustee or its nominee or indorsed in blank;
                  or such additional or alternative procedures as may hereafter
                  become appropriate to effect the complete transfer of
                  ownership of any such Eligible Investments to the Indenture
                  Trustee free of any adverse claims, consistent with changes in
                  applicable law or regulations or the interpretation thereof;

                        (B)   with respect to a "certificated security" (as
                  defined in Section 8-102(a)(4) of the UCC), transferred:

                              (1)   by physical delivery of such certificated
                        security to the Indenture Trustee), provided that if the
                        certificated security is in registered form, it shall be
                        indorsed to, or registered in the mane of, the Indenture
                        Trustee or endorsed in blank;

                              (2)   by physical delivery of such certificated
                        security in registered form to a "securities
                        intermediary" (as defined in

                                      -9-
<PAGE>   15
                        Section 8-102(a)(14) of the UCC acting on behalf of the
                        Indenture Trustee if the certificated security has been
                        specially indorsed to the Indenture Trustee by an
                        effective endorsement.

                        (C)   with respect to any security issued by the U.S.
                  Treasury, the Federal Home Loan Mortgage Corporation or by the
                  Federal National Mortgage Association that is a book-entry
                  security held through the Federal Reserve System pursuant to
                  Federal book entry regulations, the following procedures, all
                  in accordance with applicable law, including applicable
                  federal regulations and Articles 8 and 9 of the UCC:
                  book-entry registration of such property to an appropriate
                  book-entry account maintained with a Federal Reserve Bank by a
                  securities intermediary which is also a "depositary" pursuant
                  to applicable federal regulations and issuance by such
                  securities intermediary of a deposit advice or other written
                  confirmation of such book-entry registration to the Indenture
                  Trustee of the purchase by the securities intermediary on
                  behalf of the Indenture Trustee of such book-entry security;
                  the making by such securities intermediary of entries in its
                  books and records identifying such book-entry security held
                  through the Federal Reserve System pursuant to Federal
                  book-entry regulations as belonging to the Indenture Trustee
                  and indicating that such securities intermediary holds such
                  book-entry security solely as agent for the Indenture Trustee;
                  or such additional or alternative procedures as may hereafter
                  become appropriate to effect complete transfer of ownership of
                  any such Eligible Investments to the Indenture Trustee free of
                  any adverse claims, consistent with changes in applicable law
                  or regulations or the interpretation thereof;

                        (D)   with respect to any "uncertificated security" (as
                  defined in Section 8-102(a)(18) of the UCC) that is not
                  governed by clause (C) above, transferred:

                              (1)   (A)  by registration to the Indenture
                        Trustee as the registered owner thereof, on the books
                        and records of the issuer thereof, or

                                    (B)   by registration to another Person (not
                              a securities intermediary) that either becomes the
                              registered owner of the uncertificated security on
                              behalf of the Indenture Trustee or, having become
                              the registered owner, acknowledges that it holds
                              for the Indenture Trustee; or

                              (2)   by the issuer thereof having agreed that it
                        will comply with instructions originated by the
                        Indenture Trustee without further consent of the
                        registered owner thereof;

                        (E)   with respect to any "security entitlement" (as
                  defined in Section 8-102(a)(17) of the UCC):

                                      -10-
<PAGE>   16
                              (1)   if a securities intermediary

                                    (A)   indicates by book-entry that a
                              "financial asset" (as defined in Section
                              8-102(a)(9) of the UCC) has been credited to the
                              Indenture Trustee's "securities account" (as
                              defined in Section 8-501(a) of the UCC),

                                    (B)   receives a financial asset (as so
                              defined) from the Indenture Trustee or acquires a
                              financial asset for the Indenture Trustee, and in
                              either case, accepts it for credit to the
                              Indenture Trustee's securities account (as so
                              defined),

                                    (C)   becomes obligated under other law,
                              regulation or rule to credit a financial asset to
                              the Indenture Trustee's securities account, or

                                    (D)   has agreed that it will comply with
                              "entitlements orders" (as defined in Section
                              8-102(a)(8) of the UCC) originated by the
                              Indenture Trustee, without further consent by the
                              "entitlement holder" (as defined in Section
                              8.102(a)(7) of the UCC), and

                              (2)   such financial asset either is such Eligible
                        Investment or a security entitlement evidencing a claim
                        thereto; and

                        (F)   in each case of delivery contemplated pursuant to
                  clauses (A) through (E) of subsection (ii) hereof, the
                  Indenture Trustee shall make appropriate notations on its
                  records, and shall cause the same to be made on the records of
                  its nominees, indicating that such Eligible Investment is held
                  in trust pursuant to and as provided in this Indenture.

Any cash held by the Indenture Trustee shall not be considered a "financial
asset" for purposes of this Section 3.03(c). Subject to the other provisions
hereof, the Indenture Trustee shall have sole control over each such investment
and the income thereon, and any certificate or other instrument evidencing any
such investment, if any, shall be delivered directly to the Indenture Trustee or
its agent, together with each document of transfer, if any, necessary to
transfer title to such investment to the Indenture Trustee in a manner with
complies with this Section 3.03

            Section 3.04 Disbursements From Collection Account. (a) On each
Payment Date, unless a Restricting Event of which a Responsible Officer of the
Indenture Trustee has actual knowledge, has occurred and is continuing, and
prior to the declaration of an Event of Default hereunder, the Indenture Trustee
shall pay from Available Funds then on deposit in Collection Sub-Account A until
all such funds have been exhausted and then from Collection Sub-Account B, with
respect to the related Collection Period, as indicated on the Monthly Statement,
as applicable, to the Persons to which such money is then due, calculated on the
basis of and in accordance with the Monthly Statement for the related Collection
Period; provided,

                                      -11-
<PAGE>   17
however, that in the event the Servicer fails to deliver a Monthly Statement by
a Payment Date the Indenture Trustee shall, nevertheless, in accordance with the
priorities set forth in Section 3.04(b), pay interest on each Class of Notes
from the sources of funding set forth herein, in each case in an amount with
respect to each Class equal to the product of (i) one-twelfth (or, with respect
to the initial Payment Date, a fraction the numerator of which is the actual
number of days elapsed from and including the Closing Date, and the denominator
of which is 360), (ii) the related Note Rate and (iii) the related Note
Principal Balance, as reflected on the Monthly Statement most recently delivered
by the Servicer (net of any principal payments in respect thereof on the
immediately preceding Payment Date). After the declaration of an Event of
Default hereunder, the Indenture Trustee shall distribute Available Funds in
accordance with Section 8.07 hereof.

            (b)   (I) On each Payment Date (unless a Restricting Event or an
Event of Default of which a Responsible Officer of the Indenture Trustee has
actual knowledge, has occurred and is continuing), the Indenture Trustee shall
pay from Available Funds then on deposit in the Collection Sub-Account A until
all such funds have been exhausted and then from Collection Sub-Account B, with
respect to the related Collection Period to the following Persons, in the
following order of priority, in accordance with the Monthly Statement:

                  (i)   to the Indenture Trustee, the Indenture Trustee Fees
      then due, together with any Indenture Trustee Fees from prior Collection
      Periods, and any reasonable out-of-pocket expenses due and owing to the
      Indenture Trustee;

                  (ii)  to the Back-up Servicer, the Back-up Servicer Fee then
      due, together with any accrued and unpaid Back-up Servicer Fees from prior
      Collection Periods and any other amounts due and owing to the Back-up
      Servicer;

                  (iii) to the Servicer, the Servicer Fee then due, together
      with any accrued and unpaid Servicer Fees from prior Collection Periods
      and any unreimbursed Servicer Advances (other than Servicer Advances for
      the related Collection Period);

                  (iv)  to the Swap Counterparty, the Issuers Swap Payment;

                  (v)   to the Class A Noteholders, the Note Interest due on the
      Class A Notes;

                  (vi)  to the Class B Noteholders, the Note Interest due on the
      Class B Notes;

                  (vii) to the Class C Noteholders, the Note Interest due on the
      Class C Notes;

                  (viii) to the Class D Noteholders, the Note Interest due on
      the Class D Notes;

                  (ix)  to the Class E Noteholders, the Note Interest due on the
      Class E Notes;

                                      -12-
<PAGE>   18
                  (x)   to the Class F Noteholders, the Note Interest due on the
      Class F Notes;

                  (xi)  to the VFN Noteholders, the Note Interest due on the VFN
      Notes;

                  (xii) to the VFN Noteholders, the Note Principal Amount of the
      VFN Notes;

                  (xiii) to the Class A Noteholders, the Principal Amount of the
      Class A Notes;

                  (xiv) to the Class B Noteholders, the Principal Amount of the
      Class B Notes;

                  (xv)  to the Class C Noteholders, the Principal Amount of the
      Class C Notes;

                  (xvi) to the Class D Noteholders, the Principal Amount of the
      Class D Notes;

                  (xvii) to the Class E Noteholders, the Principal Amount of the
      Class E Notes;

                  (xviii) to the Class F Noteholders, the Principal Amount of
      the Class F Notes;

                  (xix) to the Class A Noteholders, Additional Principal, if
      any, as an additional reduction of principal until the Note Principal
      Balance on all of the Class A Notes has been reduced to zero; then to the
      Class B Noteholders, Additional Principal, if any, as an additional
      reduction of principal, until the Note Principal Balance of the Class B
      Notes has been reduced to zero; then to the Class C Noteholders,
      Additional Principal, if any, as an additional reduction of principal,
      until the Note Principal Balance of the Class C Notes has been reduced to
      zero; then to the Class D Noteholders, Additional Principal, if any, as an
      additional reduction of principal, until the Note Principal Balance of the
      Class D Notes has been reduced to zero; then to the Class E Noteholders,
      Additional Principal, if any, as an additional reduction of principal,
      until the Note Principal Balance of the Class E Notes has been reduced to
      zero; and then to the Class F Noteholders, Additional Principal, if any,
      as an additional reduction of principal until the Note Principal Balance
      of the Class F Notes has been reduced to zero;

                  (xx)  to the Reserve Account, the amount necessary to maintain
      the amount on deposit therein (after giving effect to all withdrawals from
      the Reserve Account on such date) at the Requisite Amount for such Payment
      Date; and

                  (xxi) to the Indenture Trustee, to the extent not paid
      pursuant to clause (i) above, any other amounts due and owing to the
      Indenture Trustee;

                                      -13-
<PAGE>   19
                  (xxii) to the Back-up Servicer, to the extent not paid
      pursuant to clause (ii) above, any other amounts due and owing to the
      Back-up Servicer;

                  (xxiii) to the Servicer, to the extent not paid pursuant to
      clause (iii) above, any other amounts due and owing to the Servicer;

                  (xxiv) to the Swap Counterparty, any amounts relating to Swap
      Termination Payments; and

                  (xxv) to the Issuers, any remaining amounts, pro rata, in
      accordance with their respective percentage ownership interest of the
      Contracts.

            (II)  On each Payment Date after a Restricting Event has occurred
and is continuing, the Indenture Trustee shall pay from the Available Funds then
on deposit in Collection Sub-Account A until all such funds have been exhausted
and then from the Available Funds then on deposit in Collection Sub-Account B,
in the following order of priority, in accordance with the Monthly Statement:

                  (i)   to the Indenture Trustee, the Indenture Trustee Fees
      then due, together with any Indenture Trustee Fees from prior Collection
      periods and any reasonable out-of-pocket expenses due and owing to the
      Indenture Trustee;

                  (ii)  to the Back-up Servicer, the Back-up Servicer Fee then
      due, together with any accrued and unpaid Back-up Servicer Fees from prior
      Collection Periods and any other amounts due and owing to the Back-up
      Servicer;

                  (iii) to the Servicer, the Servicer Fee then due, together
      with any accrued and unpaid Servicer Fees from prior Collection Periods
      and any unreimbursed Servicer Advances (other than Servicer Advances from
      the related Collection Period);

                  (iv)  to the Swap Counterparty, the Issuers Swap Payment;

                  (v)   to the Class A Noteholders, the Note Interest due on the
      Class A Notes;

                  (vi)  to the Class B Noteholders, the Note Interest due on the
      Class B Notes;

                  (vii) to the Class C Noteholders, the Note Interest due on the
      Class C Notes;

                  (viii) to the Class D Noteholders, the Note Interest due on
      the Class D Notes;

                  (ix)  to the Class E Noteholders, the Note Interest due on the
      Class E Notes;

                                      -14-
<PAGE>   20
                  (x)   to the Class F Noteholders, the Note Interest due on the
      Class F Notes;

                  (xi)  to the Class VFN Noteholders, the Note Interest due on
      the Class VFN Notes;

                  (xii) to the Class A Noteholders, the Base Principal Amount
      until the Note Principal Balance of the Class A Notes is reduced to zero;

                  (xiii) to the Class B Noteholders, the Base Principal Amount
      until the Note Principal Balance of the Class B Notes is reduced to zero;

                  (xiv) to the Class C Noteholders, the Base Principal Amount
      until the Note Principal Balance of the Class C Notes is reduced to zero;

                  (xv)  to the Class D Noteholders, the Base Principal Amount
      until the Note Principal Balance of the Class D Notes is reduced to zero;

                  (xvi) to the Class E Noteholders, the Base Principal Amount
      until the Note Principal Balance of the Class E Notes is reduced to zero;

                  (xvii)to the Class F Noteholders and the VFN Noteholders, pro
      rata, in accordance with their respective Class Percentage Interests of
      the aggregate Note Principal Balance, the base Principal Amount until the
      Note Principal Balance of the Class F Notes and the VFN Notes is reduced
      to zero;

                  (xviii) to the Reserve Account, the amount necessary to
      maintain the amount on deposit therein (after giving effect to all
      withdrawals from the Reserve Account on such date) at the Requisite Amount
      for such Payment Date; and

                  (xix) to the Indenture Trustee, to the extent not paid
      pursuant to clause (i) above, any other amounts due and owing to the
      Indenture Trustee;

                  (xx)  to the Back-up Servicer, to the extent not paid pursuant
      to clause (ii) above, any other amounts due and owing to the Back-up
      Servicer;

                  (xxi) to the Servicer, to the extent not paid pursuant to
      clause (iii) above, any other amounts due and owing to the Servicer;

                  (xxii) to the Swap Counterparty, any amounts relating to Swap
      Termination Payments; and

                  (xxiii) to the Issuers, any remaining amounts, pro rata, in
      accordance with their respective percentage ownership interest of the
      Contracts.

            (c)   All payments to Noteholders shall be made on each Payment Date
to each Noteholder of record on the related Record Date by check, or, if
requested by such Noteholder, by wire transfer of immediately available funds to
the account designated in writing in the form

                                      -15-
<PAGE>   21
of Exhibit A hereto (or such other account as the Noteholder may designate in
writing) delivered to the Indenture Trustee on or prior to the related
Determination Date in amounts equal to such Noteholder's pro rata share (based
on the Percentage Interest of such Noteholder in the related Class of Notes) of
the payment in respect of such Class of Notes.

            Section 3.05 Reserve Account. (a) The Indenture Trustee shall
establish and maintain the Reserve Account as one or more segregated,
non-interest bearing, trust accounts in the name of "HPSC Equipment Receivables
2000-1 LLC I and HPSC Equipment Receivables 2000-1 LLC II Equipment Contract
Backed Notes, Series 2000-1 Reserve Account, in trust for the registered holders
of Equipment Contract Backed Notes, Series 2000-1." The Indenture Trustee shall
make or permit withdrawals from the Reserve Account only as provided in this
Indenture in amounts specified in a written direction of the Servicer. On the
Closing Date, the Indenture Trustee shall deposit from the proceeds of the sale
of the Notes, the Initial Reserve Account Deposit into the Reserve Account. In
addition, on or prior to each Payment Date, all Reserve Account Earnings shall
be deposited in the Reserve Account prior to making any withdrawals from the
Reserve Account on each Payment Date.

            (b)   On each Payment Date, the amount on deposit in the Reserve
Account shall be withdrawn by the Indenture Trustee after funds on deposit in
the Residual Payment Account on such Payment Date have been exhausted, to the
extent necessary, to fund any deficiencies in the amounts to be distributed
pursuant to Section 3.04(b)(I)(v) - (xix) and 3.04(b)(II)(v) - (xvii), in that
order of priority, but only after first exhausting the amounts on deposit in the
Residual Payment Account on such Payment Date. The Indenture Trustee shall
withdraw such amounts from the Reserve Account and deposit such amounts in the
Collection Account.

            (c)   On each Payment Date, following the payment in full of all
Required Distributions, the remaining Available Funds, if any, shall be
deposited in the Reserve Account in the amount necessary to maintain the amount
on deposit in the Reserve Account at the Requisite Amount with respect to such
Payment Date. On any Payment Date, if the amount on deposit in the Reserve
Account (after giving effect to any withdrawals therefrom on such Payment Date
in accordance with the foregoing) is in excess of the Requisite Amount with
respect to such Payment Date, such excess shall be released to the Issuers in
accordance with their respective percentage ownership interests in the
Contracts, unless a Restricting Event or an Event of Default has occurred and is
continuing, in which case such excess will be retained in the Reserve Account.
On the Payment Date on which the Note Principal Balance of each class of Notes
has been paid in full, the amount remaining on deposit in the Reserve Account
shall be released to the Issuers in accordance with their respective percentage
ownership interests in the Contracts.

            Section 3.06 Residual Payment Account.

            (a)   The Indenture Trustee shall establish and maintain the
Residual Payment Account as one or more segregated, non-interest bearing, trust
accounts in the name of "HPSC Equipment Receivables 2000-1 LLC I and HPSC
Equipment Receivables 2000-1 LLC II Equipment Contract Backed Notes, Series
2000-1 Residual Payment Account, in trust for the registered holders of
Equipment Contract Backed Notes, Series 2000-1." On each Payment

                                      -16-
<PAGE>   22
Date, prior to making the distribution pursuant to Section 3.04(b), the
Indenture Trustee shall withdraw from the amounts on deposit in the Residual
Payment Account to the extent necessary to fund any deficiencies (other than
deficiencies resulting from Revolving Loan Fundings) in the amounts to be
distributed pursuant to Section 3.04(b)(I)(i) - (xx) and 3.04(b)(II)(i) - (xix),
and described therein, and deposit such amounts in Collection Sub-Account A to
the extent such deficiencies are in respect of Contracts held by LLC I, and
Collection Sub-Account B to the extent such deficiencies are in respect of
Contracts held by LLC II.

            (b)   If, on the Payment Date occurring in June 2002, June 2003,
June 2004 and June 2005, the ratio of (i) the Aggregate Outstanding Contract
Balance of all Contracts which became Defaulted Contracts since the Closing Date
to (ii) the sum of (A) the Aggregate Outstanding Contract Balance as of the
Initial Cut-Off Date and (B) the amount deposited into the Pre-Funding Account
on the Closing Date is less than 0.82%, 1.45%, 2.10% or 2.35%, then 30.00%,
20.00%, 10.00% and 10.00%, respectively, of the amounts on deposit in the
Residual Payment Account will be released to LLC II. On the Payment Date on
which the Note Principal Balance and Note Interest with respect to all Classes
of Notes has been paid in full, the amount remaining on deposit in the Residual
Payment Account shall be released to the Issuers in accordance with their
respective percentage ownership interests in the Contracts.

            Section 3.07 Statements to Noteholders. (a) If the Servicer has
delivered the Monthly Statement to the Indenture Trustee on the preceding
Determination Date in accordance with Section 4.08 of the Servicing Agreement,
then on each Payment Date, the Indenture Trustee will deliver to the
Noteholders, the Initial Purchaser and the Rating Agencies (and so long as the
Class A, Class B1, Class B2, Class C and Class D Notes are listed on the
Luxembourg Stock Exchange, to the Luxembourg Paying and Transfer Agent, and with
respect to item (iv) below, the Luxembourg Paying and Transfer Agent with
instructions to provide same to the Luxembourg Stock Exchange) a statement
(which statement will be prepared by the Servicer not later than such preceding
Determination Date and may be included in the Monthly Statement) setting forth
the following information (per $1,000 of the Initial Note Principal Balance of
the Class A Notes, the Class B1 Notes, the Class B2 Notes, the Class C Notes,
the Class D Notes, the Class E Notes, the Class F Notes and the VFN Notes (as
the case may be) as to (i) and (ii) below):

                  (i)   With respect to a statement to any Noteholder, the
      amount of each payment allocable to such Noteholder's Percentage Interest
      of the Class A, Class B1, Class B2, Class C, Class D, Class E, Class F or
      VFN Note Base Principal Distribution Amount and Class A, Class B1, Class
      B2, Class C, Class D, Class E, Class F and VFN Note Overdue Principal, as
      applicable;

                  (ii)  With respect to a statement to any Noteholder, the
      amount of each payment allocable to such Noteholder's Percentage Interest
      of Class A, Class B1, Class B2, Class C, Class D, Class E, Class F or VFN
      Note Current Interest and Class A, Class B1, Class B2, Class C, Class D,
      Class E, Class F and VFN Note Overdue Interest, as applicable;

                  (iii) The aggregate amount of fees and compensation received
      by the Servicer pursuant to Section 3.04(b) hereof for the related
      Collection Period;

                                      -17-
<PAGE>   23
                  (iv)  The aggregate Note Principal Balance of the Class A
      Notes, the Class B1 Notes, the Class B2 Notes, the Class C Notes, the
      Class D Notes, the Class E Notes, the Class F Notes and the VFN Notes, the
      Note Factor for the Class A Notes, the Class B1 Notes, the Class B2 Notes,
      the Class C Notes, the Class D Notes, the Class E Notes, the Class F Notes
      and the VFN Notes, the Pool Factor, the Aggregate Discounted Contract
      Balance, after taking into account all distributions made on such Payment
      Date, the Outstanding Revolver Balance, after taking into account all
      distributions made on such Payment Date and the Aggregate Outstanding
      Contract Balance, after taking into account all distributions made on such
      Payment Date;

                  (v)   The total unreimbursed Servicer Advances with respect to
      the related Collection Period;

                  (vi)  The amount of Liquidation Proceeds for the related
      Collection Period and the amount of Liquidation Proceeds cumulatively
      since the Initial Cut-Off Date, the Aggregate Discounted Contract Balance
      for all Contracts (other than Revolving Loans) that became 90-Day
      Delinquent Contracts or Defaulted Contracts during the related Collection
      Period, the Aggregate Discounted Contract Balance for all Contracts (other
      than Revolving Loans) that became and remain Defaulted Contracts since the
      Initial Cut-Off Date, the aggregate Outstanding Revolver Balance for all
      Contracts which are Revolving Loans that became 90-Day Delinquent
      Contracts or Defaulted Contracts during the related Collection Period and
      the aggregate Outstanding Revolver Balance for all Contracts which are
      Revolving Loans that became and remain Defaulted Contracts since the
      Initial Cut-Off Date;

                  (vii) The total number of Contracts (other than Revolving
      Loans) and the Aggregate Outstanding Contract Balance thereof, together
      with the number and Aggregate Outstanding Contract Balance of all
      Contracts (other than Revolving Loans) as to which the Obligors, as of the
      related Calculation Date, have missed one, two, three or four Scheduled
      Payments (including Final Scheduled Payments), and 90-Day Delinquent
      Contracts and Defaulted Contracts (which are not Revolving Loans),
      reconveyed to the Originators;

                  (viii)The total number of Contracts which are Revolving Loans
      and the aggregate Outstanding Revolver Balance thereof, together with the
      number and Aggregate Outstanding Revolver Balance of all Contracts which
      are Revolving Loans as to which the Obligors, as of the related
      Calculation Date, have missed one, two, three or four Scheduled Payments
      (including Final Scheduled Payments), and 90-Day Delinquent Contracts and
      Defaulted Contracts, reconveyed to the Originators;

                  (ix)  The amount on deposit in the Pre-Funding Account, the
      Capitalized Interest Account, the Residual Payment Account and the Reserve
      Account, in each case, after giving effect to all payments made on such
      Payment Date;

                  (x)   The Delinquency Trigger Ratio and the Defaulted Contract
      Trigger Ratio; and

                                      -18-
<PAGE>   24
                  (xi)  The Overcollateralization Balance.

            (b)   By January 31 of each calendar year, commencing January 31,
2001, or as otherwise required by applicable law, the Indenture Trustee shall
furnish to each Person who at any time during the immediately preceding calendar
year was a Noteholder a statement prepared by the Servicer, and delivered to the
Indenture Trustee, containing the applicable aggregate amounts paid to such
Noteholder for such calendar year or, in the event such Person was a Noteholder
during a portion of such calendar year, for the applicable portion of such year,
for the purposes of such Noteholder's preparation of federal income tax returns.
In addition to the foregoing the Servicer and the Indenture Trustee (to the
extent the Servicer has provided the necessary information to the Indenture
Trustee) shall make available to Noteholders any other information provided to
the Servicer or the Indenture Trustee or otherwise in the Indenture Trustee's
possession reasonably requested by Noteholders in connection with tax matters.

            (c)   The Indenture Trustee shall promptly send to each Noteholder,
the Initial Purchaser and to the Rating Agencies in writing:

                  (i)   Notice of any breach by the Transferors, the Issuers,
      the Originators or the Servicer of any of their respective
      representations, warranties and covenants made in any of the Transaction
      Documents, of which a Responsible Officer of the Indenture Trustee has
      actual knowledge or received written notice;

                  (ii)  A copy of each Servicer annual compliance statement
      delivered to the Indenture Trustee pursuant to Section 4.09 of the
      Servicing Agreement;

                  (iii) Notice of any breach by the Indenture Trustee of its
      representations and warranties set forth in Section 7.16 hereof of which a
      Responsible Officer has actual knowledge or received written notice;

                  (iv)  Notice of the occurrence of any Event of Default of
      which a Responsible Officer of the Indenture Trustee has actual knowledge
      or received written notice;

                  (v)   Notice of any Event of Servicing Termination or any
      default under any of the Transaction Documents of which a Responsible
      Officer of the Indenture Trustee has actual knowledge or received written
      notice; and

                  (vi)  Notice of the resignation or removal of the Indenture
      Trustee.

Except as may be specifically provided herein, the Indenture Trustee shall have
no obligation to seek to obtain any such information.

            Section 3.08 Compliance With Withholding Requirements.
Notwithstanding any other provisions of this Indenture, the Indenture Trustee,
as paying agent for and on behalf of, and at the direction of the Servicer,
shall comply with all federal withholding requirements respecting payments (or
advances thereof) to Noteholders as may be applicable to instruments
constituting indebtedness for federal income tax purposes. Any amounts so
withheld shall be

                                      -19-
<PAGE>   25
treated as having been paid to the related Noteholder for all purposes of this
Indenture. In no event shall the consent of Noteholders be required for any
withholding.

            Section 3.09 Purchases of Future Fundings on Revolving Loans. In the
event that after the Closing Date, LLC II wishes to purchase Receivables
generated by ACFC in respect of Revolving Loans then owned by LLC II, LLC II may
upon one Business Day's prior written notice (which notice shall set forth the
related Subsequent Revolver Transfer Date) to the Indenture Trustee, request to
pledge such Receivables to the Indenture Trustee for the benefit of the
Noteholders. If, on such Subsequent Revolver Transfer Date, the amount on
deposit in Collection Sub-Account B, when combined with the amount on deposit in
Collection Sub-Account A, is greater than the Required Distribution Amount for
the next Payment Date, then, in consideration for the pledge of such Receivable,
the Indenture Trustee shall withdraw from Collection Sub-Account B, an amount
equal to the Outstanding Revolver Balance in respect of such Receivable (the
"Subsequent Revolver Purchase Price"), and transfer such amount to LLC II, but
only if such Subsequent Revolver Purchase Price does not exceed an amount equal
to the excess of the aggregate amount on deposit in the Collection Account over
the Required Distribution Amount for such next Payment Date. If, on the Business
Day prior to the Subsequent Revolver Transfer Date, the Indenture Trustee
determines that amounts on deposit in Collection Sub-Account B are insufficient
to execute such pledge in accordance with the immediately preceding sentence,
the Indenture Trustee shall, on such day, provide written notice to the VFN
Noteholder and the Servicer indicating the amount of the deficiency that would
result if such pledge is executed. The VFN Noteholder, after receipt of such
notice, shall, either (i) instruct the Indenture Trustee to not execute such
pledge (the absence of which instruction on or prior to the related Subsequent
Revolver Transfer Date shall be deemed to be such instruction) or (ii) instruct
the Indenture Trustee to execute such pledge and deposit the amount of any such
deficiency in Collection Sub-Account B on such Subsequent Revolver Transfer
Date, up to the amount of such Subsequent Revolver Purchase Price.

                                   ARTICLE IV

                        REMOVAL OF NON-CONFORMING PLEDGED
                       PROPERTY; SUBSTITUTION OF CONTRACTS

            Section 4.01 Removal of Non-Conforming Pledged Property. (a) Upon
discovery by any Issuer, any Originator, the Servicer (or any of its successors
or assigns) or in the case of the Indenture Trustee, upon actual knowledge of a
Responsible Officer of the Indenture Trustee, of a breach of any of the
representations or warranties set forth in Section 3.02 of the Receivables
Transfer Agreement that materially and adversely affects any Contract, the
related Equipment or other collateral or the related Contract File, as the case
may be, or if the Servicer fails to cause delivery of evidence of filing or
copies of any UCC financing statement or otherwise fails to satisfy the Filing
Requirements (any such event, a "Warranty Event"), the party (including any such
successor or assign) discovering such breach shall give prompt written notice to
the other parties. On or before the first Payment Date following thirty days
after its discovery or its receipt of notice of such breach or failure (or, at
the Servicer's or the related Originator's election, as applicable, any earlier
date), in the event that any such breach or failure has not been cured as of 30
days after discovery or receipt of notice of such breach in all material
respects by the related Originator or the Servicer, as the case may be, or
waived as of 30 days

                                      -20-
<PAGE>   26
after discovery or receipt of notice of such breach by the Noteholders that
together own Notes with an aggregate Percentage Interest in excess of 66 and
2/3%, the Servicer or the related Originator, as the case may be, shall deposit
(or cause to be deposited) in the Collection Account the Purchase Amount with
respect to such Contract or replace such Contract with a Substitute Contract
pursuant to Section 4.02 hereof.

            (b)   The obligation of the Servicer or the Originators, as the case
may be, to remove any property from the Pledged Property and to remit the
Purchase Amount, as appropriate, with respect to the related Contract as to
which a breach has occurred and is continuing shall constitute the sole remedy
against the Servicer or the Originators, as the case may be, for such breach
available to the Indenture Trustee and the Noteholders, except to the extent
that such breach is the result of any fraud or willful misconduct on the part of
the Servicer or the Originators, as the case may be.

            Section 4.02 Substitution of Contracts. (a) Subject to the
provisions of Sections 4.02(b) through (d) hereof, (i) the Servicer or an
Originator may, only in respect of Contracts held by LLC II, substitute one or
more Contracts (each a "Substitute Contract"), transfer all of its right, title
and interest in the related Substitute Conveyed Assets and terminate the
security interest in the related Equipment with respect to any Contract that
becomes a 90-Day Delinquent Contract or a Defaulted Contract or is the subject
of a Casualty Loss, (ii) the Servicer may substitute one or more Substitute
Contracts, transfer all of its right, title and interest in the related
Substitute Conveyed Assets and terminate the security interest in the related
Equipment with respect to any Contract that is subject to a Full Prepayment, and
(iii) the Servicer or the Originators, as the case may be, may substitute one or
more Substitute Contracts, transfer all of its right, title and interest in the
related Substitute Conveyed Assets and terminate the security interest in the
related Equipment with respect to any Contract that is the subject of a Warranty
Event and in respect of which such Substitute Contracts are substituted.

            (b)   Each Substitute Contract shall be a Contract (i) with respect
to which all of the representations and warranties set forth in Section 3.02 of
the Receivables Transfer Agreement were true as of the related Substitute
Cut-Off Date and which meets the other criteria set forth in Section 3.03 of the
Receivables Transfer Agreement, (ii) which has substantially similar
characteristics as the Contract being replaced, and (iii) no Substitute Contract
shall be selected by any Originator or the Servicer, as applicable, in a manner
that is adverse to the interests of the Noteholders.

            (c)   Prior to any substitution pursuant to this Section 4.02, (i)
the related Contract File shall have been delivered to the Custodian at least
five Business Days prior to such conveyance and the Custodian shall have issued
a Custody Receipt with respect to such Contract File and (ii) the Indenture
Trustee shall have issued a Trustee Certification and shall have received (A) an
executed transfer agreement substantially in the form of Exhibit E hereto,
between the Issuers and the Originators, providing for the unconditional sale
and transfer of the Substitute Contract and the related Substitute Conveyed
Assets by the Originators to the Issuers (such agreement, a "Substitute Transfer
Agreement") and (B) the List of Substitute Contracts reflecting such
substitution.

                                      -21-
<PAGE>   27
            (d)   No such substitution under this Section 4.02 shall be
permitted on any Substitute Transfer Date if:

                  (i)   on a cumulative basis from the Closing Date, the sum of
      the Discounted Contract Balances (as of the related Substitute Cut-Off
      Date) of such Substitute Contracts which are not Revolving Loans and the
      Outstanding Revolver Principal Balances (as of the related Substitute
      Cut-Off Date) of such Substitute Contracts which are Revolving Loans,
      would exceed ten percent (10%) of the sum of (x) the Aggregate Outstanding
      Contract Balance as of the Closing Date and (y) the Original Pre-Funded
      Amount; or

                  (ii)  on a cumulative basis from the Closing Date, the sum of
      the Discounted Contract Balances (as of the related Substitute Cut-Off
      Date) of such Substitute Contracts which are not Revolving Loans and the
      Outstanding Revolver Balances (as of the related Substitute Cut-Off Date)
      of such Substitute Contracts which are Revolving Loans, in respect of
      Contracts substituted pursuant to the Originator's obligation resulting
      from the occurrence of Warranty Events, would exceed five percent (5%) of
      the sum of (x) the Aggregate Outstanding Contract Balance as of the
      Closing Date and (y) the Original Pre-Funded Amount; or

                  (iii) as of the related Substitute Cut-Off Date, the
      Substitute Contracts then being transferred have a Discounted Contract
      Balance in the case of Contracts which are not Revolving Loans, or an
      Outstanding Revolver Balance in the case of Contracts which are Revolving
      Loans, that is less than the Discounted Contract Balance or the
      outstanding Revolving Balance, as applicable, of the Contracts being
      replaced.

            (e)   Upon the replacement of a Contract with a Substitute Contract
as described above, the security interest of the Indenture Trustee in such
replaced Contract, the related Conveyed Assets and all proceeds thereon shall be
terminated and the replaced Contract and the related Conveyed Assets shall be
released from the lien of this Indenture.

            (f)   The Servicer shall promptly deliver notice of any
substitution pursuant to this Section 4.02 to the Rating Agencies and the
Noteholders.

            Section 4.03 Release of Property from the Pledged Property. (a) The
Indenture Trustee when required by the Issuers and the provisions of this
Indenture shall execute instruments provided to it in order to release property
from the lien of this Indenture, without representation, warranty or recourse,
in a manner and under circumstances that are not inconsistent with the
provisions of this Indenture and the Servicing Agreement. No party relying upon
an instrument executed by the Indenture Trustee as provided in this Article IV
shall be bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

            (b)   The Indenture Trustee shall, at such time as there are no
Notes outstanding and all sums due the Indenture Trustee hereunder have been
paid, release any remaining portion of the Pledged Property that secured the
Notes from the lien of this Indenture and release to the Issuers (pro rata in
accordance with their respective percentage ownership interests in the

                                      -22-
<PAGE>   28
Contracts) or any other Person entitled thereto any funds then on deposit in any
of the Accounts and any subaccounts thereof. The Indenture Trustee shall release
property from the lien of this Indenture pursuant to this Section 4.03(b) only
upon receipt of an Issuers' Request accompanied by an Officers' Certificate and
an Opinion of Counsel each stating that all conditions precedent to such release
as set forth herein have been satisfied.

                                    ARTICLE V

                                    THE NOTES

            Section 5.01 The Notes. (a) The Notes will be issued in
denominations of $1,000,000 and multiples of $1,000 in excess thereof (with the
exception of one Note of each Class which may be issued in an odd amount) of the
Initial Note Principal Balance of the Class A Notes, the Class B1 Notes, the
Class B2 Notes, the Class C Notes, the Class D Notes, the Class E Notes, the
Class F Notes and the VFN Notes, respectively. Each Note shall represent a
validly issued and binding obligation of the Issuers, but only if such Note has
been executed on behalf of the Issuers by a Responsible Officer of each of the
Issuers by manual or facsimile signature and authenticated on behalf of the
Indenture Trustee by a Responsible Officer the Indenture Trustee by manual or
facsimile signature. Each Note bearing the manual or facsimile signatures of
individuals who were, at the time when such signatures were affixed, authorized
to sign on behalf of the Issuers shall be valid and binding obligations,
notwithstanding that such individuals or any of them have ceased to be so
authorized prior to the authentication and delivery of such Note, or did not
hold such offices as of the date of such Note. No Note shall be entitled to any
benefit under this Indenture, or be valid for any purpose, unless there appears
on such Note, a certificate of authentication substantially in the form set
forth in the form of the Note of the related Class as an Exhibit hereto, signed
by the Indenture Trustee by manual or facsimile signature, and such signature
upon any Note shall be conclusive evidence, and the only evidence, that such
Note has been duly authenticated and delivered hereunder. All Temporary
Regulation S Class A Notes, shall be substantially in the forms set forth in
Exhibit B-1, hereto, all Temporary Regulation S Class B1 Notes shall be
substantially in the form set forth in Exhibit B-2 hereto, all Temporary
Regulation S Class B2 Notes shall be substantially in the form set forth in
Exhibit B-3 hereto, all Temporary Regulation S Class C Notes shall be
substantially in the form set forth in Exhibit B-4 hereto, all Temporary
Regulation S Class D Notes shall be substantially in the form set forth in
Exhibit B-5 hereto, Class A 144A Global Notes, shall be substantially in the
forms set forth in Exhibit B-6, hereto, all Class B1 144A Global Notes shall be
substantially in the form set forth in Exhibit B-7 hereto, all Class B2 144A
Global Notes shall be substantially in the form set forth in Exhibit B-8 hereto,
all Class C 144A Global Notes shall be substantially in the form set forth in
Exhibit B-9 hereto, all Class D 144A Global Notes shall be substantially in the
form set forth in Exhibit B-10 hereto, all Class E Notes shall be substantially
in the form set forth in Exhibit B-11 hereto, all Class F Notes shall be
substantially in the form set forth in Exhibit B-12 hereto and all VFN Notes
shall be substantially in the form set forth in Exhibit B-13 hereto. Each Note
shall be dated the date of its authentication. Neither the Notes, nor the
Contracts are insured by the Federal Deposit Insurance Corporation or any other
governmental agency.

            (b)   No transfer of any Note shall be made unless such transfer is
made in a transaction which does not require registration or qualification under
the Securities Act or

                                      -23-
<PAGE>   29
qualification under any state securities laws. By acceptance of its Note, the
transferee of any Class A Note, Class B1 Note, Class B2 Note, Class C Note,
Class D Note, Class E Note, Class F Note or VFN Note will be deemed to have
represented that such transfer was made in reliance on Rule 144A under the
Securities Act. If a transfer of any, Class E Note, Class F Note or VFN Note is
to be made in reliance upon an exemption from the 1933 Act and applicable state
securities laws, the Indenture Trustee shall require, in order to assure
compliance with the 1933 Act, that the Holder desiring to effect such transfer
and such Holder's prospective transferee each certify to the Issuers and the
Indenture Trustee in writing the facts surrounding the transfer in the form of
either Exhibit C or Exhibit D hereto. The Indenture Trustee may conclusively
rely upon a Rule 144A Representation Letter from the prospective transferee in
the form attached as Exhibit D hereto or upon an investment letter from the
prospective transferee in the form attached as Exhibit C hereto to establish the
availability of such exemption. Neither the Issuers nor the Indenture Trustee is
obligated to register or qualify the Notes under the 1933 Act or any other
securities law. The Servicer promptly shall furnish to any Holder, or any
prospective purchaser designated by a Holder, the information required to be
delivered to Holders and prospective purchasers of Notes in connection with the
resale of the Notes to permit compliance with Rule 144A in connection with such
resale. No Note may be subdivided for resale or other transfer into a unit
smaller than a unit the initial offering price of which would have been in the
aggregate $100,000. No resale or other transfer of VFN Notes may be made to a
nonresident alien individual, foreign corporation or other non-United States
person.

            (c)   Notwithstanding anything else contained in this Indenture,
neither the Indenture Trustee nor the Note Registrar shall effect the
registration of any transfer of any, Class E Note, Class F Note or VFN Note (i)
unless, prior to such transfer, the Indenture Trustee shall have received from
the related Noteholder (with a copy to each Rating Agency) an Opinion of Counsel
to the effect that such transfer will not result in either of the Issuers
becoming subject to taxation as an association (or a publicly traded
partnership) taxable as a corporation or (ii) if following such transfer the sum
of the number of Holders of Class E Notes, Class F Notes and VFN Notes, would
not be more than 95.

            Section 5.02 Initial Issuance of Notes. The Indenture Trustee shall,
upon the written instruction of the Issuers, in exchange for the Pledged
Property, authenticate and deliver the Notes executed by the Issuers in
authorized denominations equaling in the aggregate the Initial Note Principal
Balance of the Class A Notes, the Class B1 Notes, the Class B2 Notes, the Class
C Notes, the Class D Notes, the Class E Notes, the Class F Notes and the VFN
Notes, respectively.

            Section 5.03 Global Notes. Each of the Notes, other than the Class E
Notes, Class F Notes and the VFN Notes, upon original issuance, shall be issued
in the form of one or more typewritten Notes (the "Global Notes" and each, a
"Global Note") to be delivered to The Depository Trust Company, the initial
Depository, or its custodian, by or on behalf of the Issuer. The Notes sold to
non-U.S. persons (as defined in Regulation S) in offshore transactions in
reliance on Regulation S will be represented by one or more temporary Global
Notes (each, a "Temporary Regulation S Global Notes"). Upon the expiration of
the Restricted Period, interests in a Temporary Regulation S Global Note will be
exchangeable for interests in permanent Global Notes of the same Class (together
with a Temporary Regulation S Global Note, a "Regulation S Global Note"). The
Notes sold to U.S. Persons which are Qualified Institutional Buyers will be

                                      -24-
<PAGE>   30
represented by one or more temporary Global Notes (each, a "Rule 144A Global
Note"). All Global Notes shall be initially registered on the Note Register in
the name of Cede & Co., the nominee of The Depository Trust Company, and no
Noteholder will receive a definitive note (a "Definitive Note") representing
such Noteholder's interest in the related Class of Notes, except as provided in
Section 5.04. Unless and until Definitive Notes have been issued in respect of a
Class of Notes pursuant to Section 5.04:

            (a)   the provisions of this Section 5.03 shall be in full force and
effect with respect to such Class of Notes;

            (b)   the Issuers, the Servicer and the Indenture Trustee may deal
with the Depository and the Direct Participants for all purposes with respect to
such Notes (including the making of distributions on such Notes) as the
authorized representatives of the respective Noteholders;

            (c)   to the extent that the provisions of this Section 5.03
conflict with any other provisions of this Indenture, the provisions of this
Section 5.03 shall control; and

            (d)   the rights of the respective Noteholders of a Class of Notes
shall be exercised only through the Depository and the Direct Participants and
shall be limited to those established by law and agreements between the
respective Noteholders and the Depository and/or the Direct Participants.
Pursuant to the Representation Letter, unless and until Definitive Notes are
issued in respect of the Notes pursuant to Section 5.03, the Depository will
make book-entry transfers among the Direct Participants and receive and transmit
distributions of principal and interest on the Notes to the Direct Participants.

            Section 5.04 Definitive Notes. If (a) the Depository advises the
Indenture Trustee in writing that the Depository is no longer willing or able to
properly discharge its responsibilities as Depository and the Indenture Trustee
or the Issuers are unable to locate a qualified successor, (b) the Issuers, at
their option, advise the Indenture Trustee in writing that they elect to
terminate the book-entry system with respect to any or all Classes of Notes
through the Depository, or (c) after the occurrence of an Event of Default,
Noteholders evidencing not less than 50% of the aggregate Outstanding Note
Balance of a Class of Notes, advise the Indenture Trustee and the Depository
through the Direct Participants in writing that the continuation of a book-entry
system with respect to such Class of Notes, respectively, through the Depository
is no longer in the best interest of such Noteholders, the Indenture Trustee
shall use its best efforts to notify all affected Noteholders through the
Depository of the occurrence of any such event and of the availability of
Definitive Notes to such Noteholders. Neither the Issuers nor the Indenture
Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be fully protected in relying on, such
instructions. Upon the issuance of Definitive Notes, the Issuers, the Indenture
Trustee, the Note Registrar and the Servicer shall recognize holders of
Definitive Notes as Noteholders hereunder. Upon the issuance of Definitive
Notes, all references herein to obligations imposed upon or to be performed by
the Depository shall be deemed to be imposed upon and performed by the Indenture
Trustee, to the extent applicable with respect to such Definitive Notes.

                                      -25-
<PAGE>   31
            Section 5.05 Registration, Transfer and Exchange of Notes. (a) The
Issuers shall cause to be kept at the Corporate Trust Office a register (the
"Note Register") for the registration, transfer and exchange of Notes. The
Indenture Trustee is hereby appointed "Note Registrar" for purposes of
registering Notes and transfers of Notes as herein provided. The names and
addresses of all Noteholders and the names and addresses of the transferees of
any Notes shall be registered in the Note Register; provided, however, in no
event shall the Note Registrar be required to maintain in the Note Register the
names of the individual participants holding Notes through the Depository. The
Person in whose name any Note is so registered shall be deemed and treated as
the sole owner and Noteholder thereof for all purposes of this Indenture and the
Note Registrar, the Issuers, the Indenture Trustee, the Servicer and any agent
of any of them shall not be affected by any notice or knowledge to the contrary.
A Definitive Note is transferable or exchangeable only upon the surrender of
such Note to the Note Registrar at the Corporate Trust Office together with an
assignment and transfer (executed by the Holder or his duly authorized
attorney), subject to the applicable requirements of this Section 5.05. Upon
request of the Indenture Trustee, the Note Registrar shall provide the Indenture
Trustee with the names and addresses of Noteholders.

            (b)   Upon surrender for registration of transfer of any Definitive
Note, subject to the applicable requirements of this Section 5.05, the Issuers
shall execute and the Indenture Trustee shall duly authenticate in the name of
the designated transferee or transferees, one or more new Notes in denominations
of a like aggregate denomination as the Definitive Note being surrendered. Each
Note surrendered for registration of transfer shall be canceled and subsequently
destroyed by the Note Registrar. Each new Note issued pursuant to this Section
5.05 shall be registered in the name of any Person as the transferring Holder
may request, subject to the applicable provisions of this Section 5.05. All
Notes issued upon any registration of transfer or exchange of Notes shall be
entitled to the same benefits under this Indenture as the Notes surrendered upon
such registration of transfer or exchange.

            (c)   The issuance of the Notes will not be registered or qualified
under the Securities Act or the securities laws of any state. No transfer of any
Note may be made unless that transfer is made pursuant to an effective
registration statement under the Securities Act and an effective registration or
a qualification under applicable state securities laws, or is made in a
transaction that does not require such registration or qualification because the
transfer satisfies one of the following: (i) such transfer is in compliance with
Rule 144A under the Securities Act, to a person who the transferor reasonably
believes is a Qualified Institutional Buyer (as defined in Rule 144A) that is
purchasing for its own account or for the account of a Qualified Institutional
Buyer and to whom notice is given that such transfer is being made in reliance
upon Rule 144A under the Securities Act as certified by such transferee in a
letter in the form of Exhibit F hereto; (ii) such transfer is made in an
offshore transaction in compliance with Regulation S under the Securities Act as
certified by such transferee in a letter in the form of Exhibit F to a purchaser
who is not a U.S. person and is either a Qualified Institutional Buyer or an
"accredited investor" (as defined in Rule 501(A)(1), (2), (3) or (7) of
Regulation D under the Securities Act), or (iii) after the appropriate holding
period, such transfer is pursuant to an exemption from registration under the
Securities Act provided by Rule 144 under the Securities Act, in each case in
accordance with any applicable securities laws of any state of the United
States. None of the Issuers or the Indenture Trustee is obligated to register or
qualify the Notes

                                      -26-
<PAGE>   32
under the Securities Act or any other securities law or to take any action not
otherwise required under this Indenture to permit the transfer of any Note
without registration.

            (d)   In addition to the applicable provisions of this Section 5.05
and the rules of the Depository, the exchange, transfer and registration of
transfer of Global Notes shall only be made in accordance with this Section
5.05(d).

                  (i)   Rule 144A Global Note to Temporary Regulation S Global
            Note During the Restricted Period. If, during the Restricted Period,
            a Note Owner of an interest in a Rule 144A Global Note wishes at any
            time to transfer its beneficial interest in such Rule 144A Global
            Note to a Person who wishes to take delivery thereof in the form of
            a beneficial interest in a Temporary Regulation S Global Note, such
            Note Owner may, in addition to complying with all applicable rules
            and procedures of the Depository and Clearstream or Euroclear
            applicable to transfers by their respective participants (the
            "Applicable Procedures"), transfer or cause the transfer of such
            beneficial interest for an equivalent beneficial interest in the
            Temporary Regulation S Global Note only upon compliance with the
            provisions of this Section 5.05(d)(i). Upon receipt by the Note
            Registrar at its Corporate Trust Office of (1) written instructions
            given in accordance with the Applicable Procedures from a Direct
            Participant directing the Note Registrar to credit or cause to be
            credited to another specified Direct Participant's account a
            beneficial interest in the Temporary Regulation S Global Note in an
            amount equal to the denomination of the beneficial interest in the
            Rule 144A Global Note to be transferred, (2) a written order given
            in accordance with the Applicable Procedures containing information
            regarding the account of the Direct Participant (and the Euroclear
            or Clearstream account, as the case may be) to be credited with, and
            the account of the Direct Participant to be debited for, such
            beneficial interest, and (3) a certification in the form of Exhibit
            G hereto given by the Note Owner that is transferring such interest,
            the Note Registrar shall instruct the Depository, to reduce the
            denomination of the Rule 144A Global Note by the denomination of the
            beneficial interest in the Rule 144A Global Note to be so
            transferred and, concurrently with such reduction, to increase the
            denomination of the Temporary Regulation S Global Note by the
            denomination of the beneficial interest in the Rule 144A Global Note
            to be so transferred, and to credit or cause to be credited to the
            account of the Person specified in such instructions (who shall be a
            Direct Participant acting for or on behalf of Euroclear or
            Clearstream, or both, as the case may be) a beneficial interest in
            the Temporary Regulation S Global Note having a denomination equal
            to the amount by which the denomination of the Rule 144A Global Note
            was reduced upon such transfer.

                  (ii)  Rule 144A Global Note to Regulation S Global Note After
            the Restricted Period. If, after the Restricted Period, a Note Owner
            of an interest in a Rule 144A Global Note wishes at any time to
            transfer its beneficial interest in such Rule 144A Global Note to a
            Person who wishes to take delivery thereof in the form of a
            beneficial interest in a Regulation S Global Note, such holder may,
            in addition to complying with all Applicable Procedures, transfer or
            cause the transfer of such beneficial interest for an equivalent
            beneficial interest in a

                                      -27-
<PAGE>   33
            Regulation S Global Note only upon compliance with the provisions of
            this Section 5.05(d)(ii). Upon receipt by the Note Registrar at its
            Corporate Trust Office of (1) written instructions given in
            accordance with the Applicable Procedures from a Direct Participant
            directing the Note Registrar to credit or cause to be credited to
            another specified Direct Participant's account a beneficial interest
            in the Regulation S Global Note in an amount equal to the
            denomination of the beneficial interest in the Rule 144A Global Note
            to be transferred, (2) a written order given in accordance with the
            Applicable Procedures containing information regarding the account
            of the Direct Participant (and, in the case of a transfer pursuant
            to and in accordance with Regulation S, the Euroclear or Clearstream
            account, as the case may be) to be credited with, and the account of
            the Direct Participant to be debited for, such beneficial interest,
            and (3) a certification in the form of Exhibit H hereto given by the
            Note Owner that is transferring such interest, the Note Registrar
            shall instruct the Depository, to reduce the denomination of the
            Rule 144A Global Note by the aggregate denomination of the
            beneficial interest in the Rule 144A Global Note to be so
            transferred and, concurrently with such reduction, to increase the
            denomination of the Regulation S Global Note by the aggregate
            denomination of the beneficial interest in the Rule 144A Global Note
            to be so transferred, and to credit or cause to be credited to the
            account of the Person specified in such instructions (who shall be a
            Direct Participant acting for or on behalf of Euroclear or
            Clearstream, or both, as the case may be) a beneficial interest in
            the Regulation S Global Note having a denomination equal to the
            amount by which the denomination of the Rule 144A Global Note was
            reduced upon such transfer.

                  (iii) Regulation S Global Note to Rule 144A Global Note. If
            the Note Owner of an interest in a Regulation S Global Note wishes
            at any time to transfer its beneficial interest in such Regulation S
            Global Note to a Person who wishes to take delivery thereof in the
            form of a beneficial interest in the Rule 144A Global Note, such
            holder may, in addition to complying with all Applicable Procedures,
            transfer or cause the transfer of such beneficial interest for an
            equivalent beneficial interest in the Rule 144A Global Note only
            upon compliance with the provisions of this Section 5.05(d)(iii).
            Upon receipt by the Note Registrar at its Corporate Trust Office of
            (1) written instructions given in accordance with the Applicable
            Procedures from a Direct Participant directing the Note Registrar to
            credit or cause to be credited to another specified Direct
            Participant's account a beneficial interest in the Rule 144A Global
            Note in an amount equal to the denomination of the beneficial
            interest in the Regulation S Global Note to be transferred, (2) a
            written order given in accordance with the Applicable Procedures
            containing information regarding the account of the Direct
            Participant to be credited with, and the account of the Direct
            Participant (or, if such account is held for Euroclear or
            Clearstream, the Euroclear or Clearstream account, as the case may
            be) to be debited for such beneficial interest, and (3) with respect
            to a transfer of a beneficial interest in the Regulation S Global
            Note for a beneficial interest in the related Rule 144A Global Note
            (i) during the Restricted Period, a certification in the form of
            Exhibit I hereto given by the Note Owner, or (ii) after the
            Restricted Period, an Investment Representation Letter in the form
            of Exhibit

                                      -28-
<PAGE>   34
            F attached hereto from the transferee to the effect that such
            transferee is a Qualified Institutional Buyer, the Note Registrar
            shall instruct the Depository to reduce the denomination of the
            Regulation S Global Note by the denomination of the beneficial
            interest in the Regulation S Global Note to be transferred, and,
            concurrently with such reduction, to increase the denomination of
            the Rule 144A Global Note by the aggregate denomination of the
            beneficial interest in the Regulation S Global Note to be so
            transferred, and to credit or cause to be credited to the account of
            the Person specified in such instructions (who shall be a Direct
            Participant acting for or on behalf of Euroclear or Clearstream, or
            both, as the case may be) a beneficial interest in the Rule 144A
            Global Note having a denomination equal to the amount by which the
            denomination of the Regulation S Global Note was reduced upon such
            transfer.

                  (iv)  Transfers Within Regulation S Global Notes During
            Restricted Period. If, during the Restricted Period, the Note Owner
            of an interest in a Regulation S Global Note wishes at any time to
            transfer its beneficial interest in such Note to a Person who wishes
            to take delivery thereof in the form of a Regulation S Global Note,
            such Note Owner may transfer or cause the transfer of such
            beneficial interest for an equivalent beneficial interest in such
            Regulation S Global Note only upon compliance with the provisions of
            this Section 5.05(d)(iv) and all Applicable Procedures. Upon receipt
            by the Note Registrar at its Corporate Trust Office of (1) written
            instructions given in accordance with the Applicable Procedures from
            a Direct Participant directing the Note Registrar to credit or cause
            to be credited to another specified Direct Participant's account a
            beneficial interest in such Regulation S Global Note in an amount
            equal to the denomination of the beneficial interest to be
            transferred, (2) a written order given in accordance with the
            Applicable Procedures containing information regarding the account
            of the Direct Participant to be credited with, and the account of
            the Direct Participant (or, if such account is held for Euroclear or
            Clearstream, the Euroclear or Clearstream account, as the case may
            be) to be debited for, such beneficial interest and (3) a
            certification in the form of Exhibit J hereto given by the
            transferee, the Note Registrar shall instruct the Depository to
            credit or cause to be credited to the account of the Person
            specified in such instructions (who shall be a Direct Participant
            acting for or on behalf of Euroclear or Clearstream, or both, as the
            case may be) a beneficial interest in the Regulation S Global Note
            having a denomination equal to the amount specified in such
            instructions by which the account to be debited was reduced upon
            such transfer.

            (e)   No fee or service charge shall be imposed by the Note
Registrar for its services in respect of any registration of transfer or
exchange referred to in this Section 5.05. The Note Registrar may require
payment by each transferor of a sum sufficient to cover any tax, expense or
other governmental charge payable in connection with any such transfer.

            (f)   None of the Issuers, the Indenture Trustee, the Servicer or
the Note Registrar is obligated to register or qualify the Notes under the
Securities Act or any other securities law or to take any action not otherwise
required under this Indenture to permit the transfer of such Notes without
registration or qualification. Any such Noteholder desiring to

                                      -29-
<PAGE>   35
effect such transfer shall, and does hereby agree to, indemnify the Issuers, the
Indenture Trustee, the Servicer and the Note Registrar against any loss,
liability or expense that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

            (g)   The Servicer agrees to cause the Issuer and the Issuer agrees
to provide such information as required under Rule 144A under the Securities Act
so as to allow resales of Notes to Qualified Institutional Buyers in accordance
herewith.

            (h)   Upon surrender by DTC of the global certificate or
certificates representing the Global Notes and upon receipt of instruction for
re-registration, the Indenture Trustee will issue Definitive Notes in the
respective principal amounts owned by individual Owners, and thereafter the
Indenture Trustee will recognize the holders of such Definitive Notes as
Noteholders under the Indenture. Distributions of principal of, and interest on,
such Definitive Notes will thereafter be made by the Indenture Trustee in
accordance with the procedures set forth in the Indenture directly to holders of
Definitive Notes in whose names the Definitive Notes are registered on the
Record Date.

            The final payment on any Definitive Note, however, will be made only
upon presentation and surrender of such Definitive Note at the office or agency
specified in the notice of final payment mailed to holders of the Notes,
including the office of any Paying and Transfer Agent specified in such notice.
If and for so long as any Class of Notes is listed on the Luxembourg Stock
Exchange and the rules of such exchange so require, the Issuers shall maintain a
Paying and Transfer Agent with an office in Luxembourg at which Definitive Notes
may be presented and surrendered for final payment.

            Section 5.06 Mutilated, Destroyed, Lost or Stolen Notes. If 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 (a) there is delivered to the Issuers and the Indenture Trustee such
security or indemnity satisfactory to each of them as may be required by them to
save each of them harmless (provided, that with respect to a Noteholder which is
an insurance company whose long-term debt or claims paying ability is rated
investment grade or better by Moody's and S&P at such time, a letter of
indemnity furnished by it shall be sufficient for this purpose), then, in the
absence of notice to the Indenture Trustee that any such Note has been acquired
by a bona fide purchaser, the Issuers shall execute and the Indenture Trustee
shall authenticate and deliver in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a new Note of like Class and Percentage
Interest. In connection with the issuance of any new Note under this Section
5.06, the Indenture Trustee may require the payment by the Noteholder, of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto. Any duplicate Note issued pursuant to this Section 5.06 shall
constitute a Note, duly issued by the Issuers, as if originally issued, whether
or not the lost, stolen or destroyed Note shall be found at any time.

            Section 5.07 Persons Deemed Owners. The Indenture Trustee may treat
the Person in whose name any Note is registered as the owner of such Note for
the purpose of receiving distributions pursuant to Section 3.04 hereof and for
all other purposes whatsoever, and the Indenture Trustee shall not be affected
by any notice to the contrary.

                                      -30-
<PAGE>   36
            Section 5.08 Access to List of Noteholders' Names and Addresses. (a)
The Indenture Trustee will furnish or cause to be furnished to the Servicer
within five days after each Record Date and within 15 days after receipt by the
Indenture Trustee of a request therefor from the Servicer in writing, a list of
the names and addresses of the Noteholders as of the most recent Record Date. If
one or more Noteholders representing an aggregate Percentage Interest of any
Class of Notes of not less than 25% (an "Applicant") shall apply in writing to
the Indenture Trustee, and such application shall state that the Applicant
desires to communicate with other Noteholders with respect to its rights under
this Indenture or under the Notes, then the Indenture Trustee shall, within five
Business Days after the receipt of such application, send such notice to the
current list of Noteholders. Every Noteholder, by receiving and holding a Note,
agrees with the Issuers, the Servicer and the Indenture Trustee that none of the
Issuers, the Servicer, the Indenture Trustee nor any of their respective
Affiliates shall be held accountable by reason of the disclosure of any such
information, regardless of the source from which such information was derived.

            Section 5.09 Acts of Noteholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by an agent duly appointed in writing, and, except
as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Indenture Trustee and, where
required, to the Issuers or the Servicer. 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 7.01 hereof) conclusive in
favor of the Indenture Trustee, the Issuers, the Originators and the Servicer,
if made in the manner provided in this Section 5.09.

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

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

            (d)   Any request, demand, authorization, direction, notice,
consent, waiver or other act by a Noteholder shall bind every holder of every
Note issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, in respect of anything done or omitted to be done by the
Indenture Trustee, the Issuers or the Servicer in reliance thereon, whether or
not notation of such action is made upon such Note.

            Section 5.10 No Proceedings; Limited Recourse. By its acceptance of
a Note, each Noteholder shall be deemed to have agreed (a) that it will not
directly or indirectly institute, or cause to be instituted, or cooperate with
others in instituting, against either of the Issuers any bankruptcy or
insolvency proceeding so long as there shall not have elapsed one year plus one
day since the maturity date of the latest maturing securities of either of the
Issuers, (b) that the Notes are limited recourse obligations of the Issuers that
may be satisfied only out of the Pledged Property and do not constitute a claim
against the Issuers if cash flow from the Pledged Property is insufficient to
repay the Notes in full, and (c) that it has no rights in or with respect to any
assets of the Issuers other than the Pledged Property, including, but not
limited to, any assets

                                      -31-
<PAGE>   37
collateralizing other debt obligations of the Issuers. Notwithstanding the
foregoing, to the extent that any Noteholder is deemed to have any interest in
any assets of the Issuers pledged to secure other debt obligations of the
Issuers, by its acceptance of a Note, each Noteholder shall be deemed to agree
that its interest in those assets is subordinate to claims or rights of the
holders of such other debt obligations, and that its agreement shall constitute
a subordination agreement for purposes of Section 510(a) of the Bankruptcy Code.

                                   ARTICLE VI

                                   THE ISSUERS

            Section 6.01 Liability of the Issuers. (a) The Issuers shall be
joint and severally liable for payments in respect of the Notes in accordance
herewith only to the extent of the obligations specifically undertaken by the
Issuers herein.

            Section 6.02 Limitation on Recourse to the Issuers. The claims of
the Indenture Trustee, the Servicer, the Noteholders or any other Person
hereunder against the Issuers for amounts due and owing to such Persons
hereunder, under the Notes or under any other Transaction Document to which such
Person is a party are limited recourse against the Issuers and are payable by
the Issuers solely out of Available Funds on each Payment Date in accordance
with the priorities set forth in Section 3.04(b) hereof.

            Section 6.03 Indemnity for Liability Claims. The Issuers shall
indemnify, defend and hold harmless the Indenture Trustee (which shall include
any of its directors, employees, officers and agents) and the Noteholders
against and from any and all costs, expenses, losses, damages, claims and
liabilities arising out of or resulting from the use, repossession or operation
of the Equipment to the extent not paid by the Servicer pursuant to Section 5.01
of the Servicing Agreement; provided, however, that such amounts shall be
payable solely from amounts payable to the Issuers pursuant to Section
3.04(b)(I)(xxiv) hereof and is otherwise non-recourse to the Issuers.

            Section 6.04 Liabilities. Notwithstanding any provision of this
Indenture, by entering into this Indenture, the Issuers agree to be jointly and
severally liable, directly to the injured party, for the entire amount of any
losses, claims, damages or liabilities (other than those losses incurred by a
Noteholder in the capacity of an investor in the Notes) imposed on or asserted
against the Issuers or otherwise arising out of or based on the arrangements
created by this Indenture (to the extent the Pledged Property remaining after
the Noteholders have been paid in full is insufficient to pay such losses,
claims, damages or liabilities).

            Section 6.05 Annual Statement as to Compliance. The Issuers will
deliver to the Indenture Trustee, the Initial Purchaser and the Rating Agencies,
within 90 days after the end of each fiscal year of the Issuers (commencing with
the fiscal year ended December 31, 2001), an Officers' Certificate signed by an
Authorized Officer stating that:

                  (i)   a review of the activities of the Issuers during such
      year and of the performance of the Issuers under this Indenture has been
      made under such Authorized Officers' supervision; and

                                      -32-
<PAGE>   38
                  (ii)  to the best of such Authorized Officers' knowledge,
      based on such review, each of the Issuers has complied with all conditions
      and covenants under this Indenture throughout such year, or, if there has
      been a default in the compliance of any such condition or covenant,
      specifying each such default known to such Authorized Officers and the
      nature and status thereof.

            Section 6.06 Payment of Principal and Interest. The Issuers will pay
or cause to be duly and punctually paid the principal of and interest on the
Notes in accordance with the terms of the Notes and this Indenture. 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
Issuers to such Noteholder for all purposes of this Indenture.

            Section 6.07 Maintenance of Office or Agency. The Note Registrar
shall, and the Indenture Trustee, as initial Note Registrar agrees to, maintain
in the city in which the Corporate Trust Office is located, an office or agency
where Notes may be surrendered for registration of transfer or exchange, and
where notices and demands to or upon the Issuers in respect of the Notes and
this Indenture may be served. The Indenture Trustee will give prompt written
notice to the Issuers of the location, and of any change in the location, of any
such office or agency.

            Section 6.08 Money for Payments to be Held in Trust. On or before
each Payment Date, the Servicer on behalf of the Issuers shall deposit or cause
to be deposited in the Collection Account, but only from the sources described
herein, an aggregate sum sufficient to pay the amounts then becoming due under
the Notes, such sum to be held in trust for the benefit of the Persons entitled
thereto and (unless the paying agent is the Indenture Trustee) shall promptly
notify the Indenture Trustee of its action or failure so to act.

            The Servicer on behalf of the Issuers will cause each paying agent
other than the Indenture Trustee to execute and deliver to the Indenture Trustee
an instrument in which such paying agent shall agree with the Indenture Trustee
(and if the Indenture Trustee acts as paying agent, it hereby so agrees),
subject to the provisions of this Section, that such paying agent will:

                  (i)   hold all sums held by it for the payment of amounts due
      with respect to the Notes in trust for the benefit of the Persons entitled
      thereto until such sums shall be paid to such Persons or otherwise
      disposed of as herein provided and pay such sums to such Persons as herein
      provided;

                  (ii)  give the Indenture Trustee notice of any default by the
      Issuers (or any other obligor upon the Notes) of which it has actual
      knowledge in the making of any payment required to be made with respect to
      the Notes;

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

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

                                      -33-
<PAGE>   39
      ceases to meet the standards required to be met by a paying agent at the
      time of its appointment; and

                  (v)   comply with all requirements of the Code with respect to
      the withholding from any payments made by it on any Notes of any
      applicable withholding taxes imposed thereon and with respect to any
      applicable reporting requirements in connection therewith.

            The Issuers may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, direct
any paying agent to pay to the Indenture Trustee all sums held in trust by such
paying agent, such sums to be held by the Indenture Trustee upon the same terms
as those upon which the sums were held by such paying agent; and upon such a
payment by any paying agent to the Indenture Trustee, such paying agent shall be
released from all further liability with respect to such money.

            Subject to applicable laws with respect to the escheat of funds, any
money held by the Indenture Trustee or any paying agent in trust for the payment
of any amount due with respect to any Note and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuers; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuers for payment thereof (but
only to the extent of the amounts so paid to the Issuers), 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, shall at the
expense of the Issuers cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in The City of New York, notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such publication, any unclaimed balance of such money then
remaining will be repaid to the Issuers. The Indenture Trustee shall also adopt
and employ, at the expense of the Issuers, 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 6.09 Existence. Except as otherwise permitted by the
provisions of Section 6.13, each of the Issuers will keep in full effect its
existence, rights and franchises as a limited liability company under the laws
of the State of Delaware, and each of the Issuers 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 and each other instrument or agreement included in the
Pledged Property.

            Section 6.10 Protection of Pledged Property. Each of the Issuers
intends the security interest granted pursuant to this Indenture in favor of the
Indenture Trustee and the Noteholders, as their interests appear herein, to be
prior to all other liens in respect of the Pledged Property, and the Issuers
shall take all actions necessary to obtain and maintain, in favor of the
Indenture Trustee, for the benefit of the Noteholders, a first lien on and a
first priority,

                                      -34-
<PAGE>   40
perfected security interest in the Pledged Property in accordance with the
Filing Requirements. The Issuers will from time to time prepare (or shall cause
to be prepared), execute and deliver all such supplements and amendments hereto
and all such financing statements (subject to the Filing Requirements),
continuation statements, instruments of further assurance and other instruments,
and will take such other action necessary or advisable to:

                  (i)   grant more effectively all or any portion of the Pledged
      Property;

                  (ii)  maintain or preserve the lien and security interest (and
      the priority thereof) in favor of the Indenture Trustee, for the benefit
      of the Noteholders, created by this Indenture 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 Pledged Property;

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

                  (vi)  pay all taxes or assessments levied or assessed upon the
      Pledged Property when due.

            Each of the Issuers hereby irrevocably constitutes and appoints the
Indenture Trustee, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of such Issuer and in the name of such Issuer or in its own name, for the
purpose of carrying out the terms of this Indenture, to take any and all
appropriate action and to execute any and all documents and instruments which
may be necessary or desirable to accomplish the purposes of this Indenture and
without limiting the generality of the foregoing, each of the Issuers hereby
gives the Indenture Trustee the power and right on behalf of such Issuer without
notice to or assent by such Issuer to do any or all of the following:

            (i)   after an Event of Default or Event of Servicer Termination has
      occurred and is continuing, at any time, in the name of such Issuer or its
      own name, or otherwise, to take possession of and endorse and collect any
      checks, drafts, notes, acceptances or other instrument, general intangible
      or contract or with respect to any other collateral and to file any claim
      or to take any other action or proceeding in any court of law or equity or
      otherwise deemed appropriate by the Indenture Trustee for the purpose of
      collecting any and all such moneys due under any account, instrument,
      general intangible or contract with respect to the Pledged Property or to
      any other collateral whenever payable; and

            (ii)  whether or not an Event of Default or Event of Servicer
      Termination has occurred, execute and deliver any and all agreements,
      instruments, documents and papers (including, without limitation, UCC
      Financing Statements) as the Indenture Trustee may request to perfect the
      Indenture Trustee's security interest in the Pledged Property (and subject
      to the Filing Requirements with respect to the Equipment) or any other
      collateral

                                      -35-
<PAGE>   41
      and the goodwill and general intangibles of such Issuer relating thereto
      or represented thereby.

            Section 6.11 Performance of Obligations; Servicing of Receivables.
(a) Neither of the Issuers will take any action and each of the Issuers will use
commercially reasonable efforts not to permit any action to be taken by others
that would release any Person from any of such Person's material covenants or
obligations under any instrument or agreement included in the Pledged Property
or that would result in the amendment, hypothecation, subordination, termination
or discharge of, or impair the validity or effectiveness of, any such instrument
or agreement, except as ordered by any bankruptcy or other court or as expressly
provided in this Indenture, the other Transaction Documents or any other
instrument or agreement.

            (b)   Each of the Issuers may contract with other Persons to assist
it in performing its duties under this Indenture, and any performance of such
duties by a Person identified to the Indenture Trustee in an Officer's
Certificate of each of the Issuers shall be deemed to be action taken by the
Issuers.

            (c)   Each of the Issuers will punctually perform and observe all of
its obligations and agreements contained in this Indenture, the other
Transaction Documents and in the instruments and agreements included in the
Pledged Property, including, but not limited to, preparing (or causing to be
prepared) and filing (or causing to be filed) all UCC financing statements and
continuation statements required to be filed by the terms of this Indenture and
the Servicing Agreement in accordance with and within the time periods provided
for herein and therein.

            (d)   If a Responsible Officer of either of the Issuers shall have
actual knowledge of the occurrence of an Event of Servicing Termination under
the Servicing Agreement, the Issuers shall promptly notify the Indenture Trustee
and the Rating Agencies in writing thereof, and shall specify in such notice the
action, if any, the Issuers are taking in respect of such default. If a Servicer
Termination Event shall arise from the failure of the Servicer to perform any of
its duties or obligations under the Servicing Agreement with respect to the
Contracts, the Issuers shall take all reasonable steps available to it to remedy
such failure.

            Section 6.12 Negative Covenants. So long as any Notes are
Outstanding, neither of the Issuers shall:

                  (i)   except as expressly permitted by this Indenture or the
      Transaction Documents, sell, transfer, exchange or otherwise dispose of
      any of the properties or assets of such Issuer, including those included
      in the Pledged Property;

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

                  (iii) (A) permit the validity or effectiveness of this
      Indenture to be impaired, or permit the lien in favor of the Indenture
      Trustee created by this Indenture to

                                      -36-
<PAGE>   42
      be amended, hypothecated, subordinated, terminated or discharged, or
      permit any Person to be released from any covenants or obligations with
      respect to the Notes under this Indenture except as may be expressly
      permitted hereby, (B) permit any lien, charge, excise, claim, security
      interest, mortgage or other encumbrance (other than the lien of this
      Indenture) to be created on or extend to or otherwise arise upon or burden
      the Pledged Property or any part thereof or any interest therein or the
      proceeds thereof (other than tax liens, mechanics' liens and other liens
      that arise by operation of law, in each case on Equipment and arising
      solely as a result of an action or omission of the related Obligor), (C)
      permit the lien of this Indenture not to constitute a valid first priority
      (other than with respect to any such tax, mechanics' or other lien)
      perfected security interest in the Pledged Property (other than the
      Equipment, which is subject only to the Filing Requirements) or (D) amend,
      modify or fail to comply with the provisions of the Transaction Documents;

                  (iv)  other than in accordance with the restrictions set forth
      therein, amend its organizational documents without the consent of the
      Majority Holders;

                  (v)   change the location of its chief executive office
      without thirty days' prior written notice to the Indenture Trustee,
      accompanied by such evidence of actions taken as shall be necessary to
      continue the perfection of the lien on the Collateral; or

                  (vi)  incur any indebtedness not permitted by its operating
      agreement, or assume or guaranty any indebtedness of any other entity
      other than the indebtedness evidenced by the Notes; or

                  (vii) engage in any business not permitted by its Limited
      Liability Company Agreement; or

                  (viii)obtain or carry insurance relating to the Contracts
      separate from that required by the Servicing Agreement, unless the
      Indenture Trustee and the Noteholders shall have the same rights with
      respect thereto as they have with respect to the insurance required by the
      Servicing Agreement.

            Section 6.13 Issuers May Consolidate, Etc. Only on Certain Terms.
(a) Neither of the Issuers shall consolidate or merge with or into any other
Person, unless:

                  (i)   the Person (if other than the Issuers) formed by or
      surviving such consolidation or merger shall be a Person organized and
      existing under the laws of the United States of America or any state and
      shall expressly assume, by an indenture supplemental hereto, executed and
      delivered to the Indenture Trustee, in form satisfactory to the Indenture
      Trustee and the Noteholders, the due and punctual payment of the principal
      of and interest on all Notes and the performance or observance of every
      agreement and covenant of this Indenture on the part of the Issuers to be
      performed or observed, all as provided herein;

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

                                      -37-
<PAGE>   43
                  (iii) the Issuers shall have received an Opinion of Counsel
      addressed to the Noteholders, (and shall have delivered copies thereof to
      the Indenture Trustee and the Noteholders, and which Opinion of Counsel
      shall be in form and substance acceptable to the Noteholders) to the
      effect that (a) such transaction will not have any material adverse tax
      consequence to the Issuers or any Noteholder, and (b) the Person (if other
      than the Issuers) formed by or surviving such consolidation or merger
      would not be substantively consolidated with either of the Originators,
      Bravo, Capital or the Servicer in the event of a bankruptcy, either of the
      Originators, Bravo, Capital or the Servicer;

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

                  (v)   the Issuers shall have delivered to the Indenture
      Trustee and the Noteholders, an Officers' Certificate and an Opinion of
      Counsel addressed to the Noteholders and the Indenture Trustee, and which
      Opinion of Counsel shall be in form and substance acceptable to the
      Noteholders and the Indenture Trustee, each stating that such
      consolidation or merger and such supplemental indenture comply with this
      Article VI and that all conditions precedent herein provided for relating
      to such transaction have been complied with (including any filing required
      by the Exchange Act); and

                  (vi)  the Rating Agencies have confirmed that such transaction
      will not result in the reduction or withdrawal of any rating on any Class
      of Notes.

            (b)   Neither of the Issuers shall convey or transfer all or
substantially all of its properties or assets, including those included in the
Pledged Property, to any Person, unless:

                  (i)   the Person that acquires by conveyance or transfer the
      properties and assets of such Issuer the conveyance or transfer of which
      is hereby restricted shall (A) be a United States citizen or a Person
      organized and existing under the laws of the United States of America or
      any state, (B) expressly assume, by an indenture supplemental hereto,
      executed and delivered to the Indenture Trustee, in form satisfactory to
      the Indenture Trustee and the Noteholders, the due and punctual payment of
      the principal of and interest on all Notes and the performance or
      observance of every agreement and covenant of this Indenture and each of
      the Transaction Documents on the part of the Issuers to be performed or
      observed, all as provided herein, (C) expressly agree by means of such
      supplemental indenture that all right, title and interest so conveyed or
      transferred shall be subject and subordinate to the rights of Holders of
      the Notes, and (D) unless otherwise provided in such supplemental
      indenture, expressly agree to indemnify, defend and hold harmless the
      Issuers against and from any loss, liability or expense arising under or
      related to this Indenture and the Notes;

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

                  (iii) the Issuers shall have received an Opinion of Counsel
      addressed to the Noteholders, and which Opinion of Counsel shall be in
      form and substance acceptable to the Noteholders (and shall have delivered
      copies thereof to the Indenture Trustee and

                                      -38-
<PAGE>   44
      the Noteholders) to the effect that such transaction will not have any
      material adverse tax consequence to the Issuers, or any Noteholder;

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

                  (v)   the Issuers shall have delivered to the Indenture
      Trustee and the Noteholders an Officers' Certificate and an Opinion of
      Counsel addressed to the Noteholders and the Indenture Trustee, and which
      Opinion of Counsel shall be in form and substance acceptable to the
      Noteholders and the Indenture Trustee each stating that such conveyance or
      transfer and such supplemental indenture comply with this Article VI and
      that all conditions precedent herein provided for relating to such
      transaction have been complied with (including any filing required by the
      Exchange Act); and

                  (vi)  the Rating Agencies have confirmed that such transaction
      will not result in the reduction or withdrawal of any rating on any Class
      of Notes.

            Section 6.14 Successor or Transferee. (a) Upon any consolidation or
merger of either of the Issuers in accordance with Section 6.13, the Person
formed by or surviving such consolidation or merger (if other than such Issuer)
shall succeed to, and be substituted for, and may exercise every right and power
of, such Issuer under this Indenture with the same effect as if such Person had
been named as the Issuer herein.

            (b)   Upon a conveyance or transfer of all the assets and properties
of either of the Issuers pursuant to Section 6.13(b), such Issuer will be
released from every covenant and agreement of this Indenture to be observed or
performed on the part of such Issuer with respect to the Notes immediately upon
the delivery of written notice to the Indenture Trustee stating that such Issuer
is to be so released.

            Section 6.15 No Other Business. Neither of the Issuers shall engage
in any business other than financing, purchasing, owning, selling and managing
the Receivables in the manner contemplated by this Indenture and the other
Transaction Documents and activities incidental thereto.

            Section 6.16 No Borrowing. Neither of the Issuers shall 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 Transaction Documents. The proceeds of the
Notes shall be used exclusively to fund each Issuer's purchase of Contracts and
the other assets constituting the Pledged Property and to pay each Issuer's
organizational, transactional and start-up expenses.

            Section 6.17 Guarantees, Loans, Advances and Other Liabilities.
Except as contemplated by this Indenture or the other Transaction Documents, the
Issuers shall not make any loan or advance or credit to, or guarantee (directly
or indirectly or by an instrument having the effect of assuring another's
payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire

                                      -39-
<PAGE>   45
(or agree contingently to do so) any stock, obligations, assets or securities
of, or any other interest in, or make any capital contribution to, any other
Person.

            Section 6.18 Capital Expenditures. Neither of the Issuers shall make
any expenditure (by long-term or operating lease or otherwise) for capital
assets (either realty or personal).

            Section 6.19 Separate Legal Identity. The Issuers shall not engage
in any action that would cause the separate legal identity of either such Issuer
not to be respected (other than for federal, state and local income or franchise
tax purposes), including, without limitation, (a) holding itself out as being
liable for the debts of any other party or (b) acting other than through its
duly authorized agents.

            Section 6.20 Management. The Issuers shall not be involved in the
day-to-day management of any of the Transferors, the Servicer or any other
Person.

            Section 6.21 Business Decisions. Each Issuer shall ensure that all
decisions with respect to its business and daily operations are independently
made by it (although the officer making any particular decision may also be an
employee, officer or director of a Transferor) and are not dictated by any
Affiliate of a Transferor.

            Section 6.22 Compliance with Laws. The Issuers 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
either of the Issuers to perform its obligations under the Notes, this Indenture
or any other Transaction Document.

            Section 6.23 Further Instruments and Acts. Upon request of the
Indenture Trustee, each of the Issuers 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 and the other
Transaction Documents.

            Section 6.24 Nonconsolidation. The Issuers agree that so long as any
Notes are Outstanding, it will be operated such that it will not be
substantively consolidated in the bankruptcy estate of HPSC or any Affiliate
thereof and will not have its separate existence disregarded in the event of a
bankruptcy of HPSC or any Affiliate thereof. Without limiting the foregoing,
each of the Issuers agree that:

            (a)   it will pay its own expenses, neither HPSC nor ACFC will
guarantee any of such Issuer's obligations other than pursuant to the Note
Purchase Agreement and neither HPSC, ACFC, nor any Affiliate thereof will lend
funds to such Issuer for the payment of expenses;

            (b)   it will conduct its business exclusively on its own stationery
and all correspondence by such Issuer will be in its own name;

            (c)   it will not permit HPSC, ACFC or any Affiliate thereof to be
involved in the daily management of such Issuer; provided, however, an officer
of HPSC or any Affiliate thereof shall not be prohibited from serving as an
officer of such Issuer;

                                      -40-
<PAGE>   46
            (d)   except in accordance with its organizational documents, it
will not engage in any intercompany transactions with HPSC, ACFC or any
Affiliate thereof, except as provided in the Receivables Transfer Agreement, the
Servicing Agreement or this Indenture;

            (e)   it will maintain company records and books of account separate
and distinct from HPSC's and ACFC's corporate records and the records of any
Affiliate thereof and maintain corporate formalities and separate business
offices and telephone number;

            (f)   the financial statements HPSC, ACFC, LLCI and LLCII will
disclose that the assets of LLCI and LLCII are not available to pay creditors of
HPSC, ACFC or any Affiliate thereof and will reflect the separate corporate
existence of LLCI and LLCII;

            (g)   it will not act as agent for HPSC, ACFC or any Affiliate
thereof and agrees that it will not authorize HPSC, ACFC or any Affiliate
thereof to act as its agent, except in HPSC's capacity as Servicer under the
Servicing Agreement;

            (h)   at least two of its managers shall be Independent Managers as
required in its Limited Liability Company Agreement;

            (i)   it will maintain its assets separate and distinct from HPSC's
assets, ACFC's assets and the assets of any Affiliate thereof, and shall not
permit its assets to be commingled with those of HPSC, ACFC or any Affiliate
thereof;

            (j)   it shall not become contractually liable for the payment of
any liability of HPSC and ACFC; and

            (k)   it will not modify or amend its operating agreement with
respect to the purpose or purposes for which it is organized.

            Section 6.25 Protection of Security Interest in Trust Estate.

            (a)   The Issuers shall execute and file such financing statements
and cause to be executed and filed such continuation and other statements, all
in such manner and in such places as may be required by law fully to preserve,
maintain and protect the interests of the Noteholders and the Indenture Trustee
under this Indenture in the Receivables and in the proceeds thereof. The Issuers
shall deliver (or cause to be delivered) to the Indenture Trustee file-stamped
copies of, or filing receipts for, any document filed as provided above, as soon
as available following such filing.

            (b)   Neither of the Issuers shall change its name, identity or
organizational structure in any manner that would, could or might make any
financing statement or continuation statement filed in accordance with paragraph
(a) above seriously misleading within the meaning of Section 9-402(7) of the
UCC, unless it shall have given the Indenture Trustee and the Noteholders at
least thirty (30) days' prior written notice thereof and shall have filed prior
to such change appropriate amendments to all such previously filed financing
statements or continuation statements.

                                      -41-
<PAGE>   47
            (c)   The Issuers shall maintain accounts and records as to each
Receivable accurately and in sufficient detail to permit (i) after reasonable
prior notice to the Issuer, the reader thereof to know at any time the status of
such Receivable, including payments and recoveries made and payments owing (and
the nature of each, if applicable) and (ii) reconciliation between payments or
recoveries on (or with respect to) each Receivable and the amounts from time to
time deposited in the Accounts (or any of them) in respect of such Receivables.

            (d)   The Issuers shall maintain its records so that, from and after
the time of the granting of the security interest under this Indenture of the
Receivables to the Indenture Trustee, the Issuer's records (including any
computer records and back-up archives) that refer to any Receivables indicate
clearly the interest of the Indenture Trustee in such Receivables and that the
Receivable is held by the Indenture Trustee on behalf of the Noteholders.
Indication of the Indenture Trustee's interest in a Receivable shall be deleted
from or modified on the Issuer's records when, and only when, the Receivable has
been paid in full, or released from the lien hereof pursuant to this Indenture.

            (e)   If at any time any of the Issuers proposes to assign, convey,
grant a security interest in, or otherwise transfer any interest in Receivables
to any prospective purchaser, lender or other transferee, the Issuer shall give
to such prospective acquirer, lender or other transferee computer tapes, records
or print-outs (including any restored from back-up archives) that, if they refer
in any manner whatsoever to any Receivable, indicate clearly that such
Receivable is subject to a security interest in favor of the Indenture Trustee
unless such Receivable has been paid in full, acquired or assigned pursuant to
this Indenture.

            (f)   The Issuers shall permit the Indenture Trustee, any Noteholder
and their respective agents, upon not less than two Business Days' prior written
notice and during normal business hours, to inspect, audit and make copies of
and abstracts from the Issuer's records regarding any Receivables then or
previously included in the Pledged Property. Nothing in this Section shall
impair the obligation of the Issuer to observe any applicable law prohibiting
disclosure of information regarding the Obligors, and the failure of the Issuers
to provide access as provided in this Section as a result of such obligation
shall not constitute a breach of this Section.

            (g)   Upon request, the Issuers shall furnish to the Indenture
Trustee, within three Business Days of such request, a List of Contracts then
held as part of the Pledged Property.

            (h)   The Issuers shall deliver to the Indenture Trustee, promptly
after the execution and delivery of each amendment to any financing statement,
an Opinion of Counsel stating that, in the opinion of such counsel, either (i)
all financing statements and continuation statements have been executed and
filed that are necessary fully to preserve and protect the interest of the
Indenture Trustee in the Receivables, and reciting the details of such filings
or referring to prior Opinions of Counsel in which such details are given, or
(ii) no such action is necessary to preserve and protect such interest.

                                      -42-
<PAGE>   48
            Section 6.26 Transfers Between Issuers. LLC II shall have the right
to assign, transfer and convey from time to time, all of its right, title and
interest to Collateral held by it which constitutes Financial Assets to LLC I.
In consideration for such conveyance, LLC I shall assume the obligations of LLC
II in respect of such Collateral in an amount equal to the Aggregate Outstanding
Contract Balance of such Collateral.

            Section 6.27 Issuer to Provide Documents to Luxembourg Paying and
Transfer Agent. Within 5 Business days after the Closing Date, the Issuers shall
provide a copy of their organizational documents, this Indenture, the Servicing
Agreement, the Note Purchase Agreement and the Receivables Transfer Agreement to
the Luxembourg Paying and Transfer Agent. Within 5 Business Days after they are
available, the Issuers will provide copies of all financial statements to the
Luxembourg Paying and Transfer Agent.

            Section 6.28 Swap Agreement. The Issuers shall be parties to hedging
instruments in substance similar to the Swap Agreement.

                                  ARTICLE VII

                              THE INDENTURE TRUSTEE

            Section 7.01 Duties of Indenture Trustee. (a) The Indenture Trustee
undertakes to perform such duties and obligations and only such duties and
obligations as are specifically set forth in this Indenture. If an Event of
Default of which a Responsible Officer of the Indenture Trustee shall have
actual knowledge has occurred and has not been cured or waived, the Indenture
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise as a
prudent Person would exercise or use under the circumstances in the conduct of
such Person's own affairs.

            (b)   The Indenture Trustee, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Indenture Trustee that are specifically required to
be furnished pursuant to any provision of this Indenture, shall examine them to
determine whether they conform as to form to the requirements of this Indenture
(but need not confirm or investigate the accuracy of any mathematical
calculations or other facts stated therein). No acceptance of, or reliance on,
any such item by the Indenture Trustee shall constitute a representation by the
Indenture Trustee of the enforceability or sufficiency of such item.

            (c)   No provision of this Indenture shall be construed to relieve
the Indenture Trustee from liability for its own gross negligence, bad faith or
willful misconduct, as determined by the final judgment of a court of competent
jurisdiction, no longer subject to appeal; provided, however, that:

                  (i)   Prior to the occurrence of an Event of Default, and
      after the curing of all such Events of Default that may have occurred, the
      duties and obligations of the Indenture Trustee shall be determined solely
      by the express provisions of this Indenture; the Indenture Trustee shall
      not be liable except for the performance of such duties and obligations as
      are specifically set forth in this Indenture; no implied covenants or

                                      -43-
<PAGE>   49
      obligations shall be read into this Indenture against the Indenture
      Trustee; and in the absence of bad faith on the part of the Indenture
      Trustee, the Indenture Trustee may conclusively rely, as to the truth of
      the statements and the correctness of the opinions expressed therein, upon
      any certificates or opinions furnished to the Indenture Trustee and, if
      specifically required to be furnished pursuant to any provision of this
      Indenture, conforming to the requirements of this Indenture;

                  (ii)  The Indenture Trustee shall not be liable for an error
      of judgment made in good faith by a Responsible Officer of the Indenture
      Trustee unless it shall be proved that the Indenture Trustee was grossly
      negligent or engaged in willful misconduct in ascertaining the pertinent
      facts;

                  (iii) The Indenture Trustee shall not be personally liable
      with respect to any action taken, suffered or omitted to be taken by it in
      good faith in accordance with this Indenture, pursuant to the direction of
      the Majority Holders, relating to the time, method and place of conducting
      any proceeding for any remedy available to the Indenture Trustee, or
      exercising, suffering or omitting to take any trust or power conferred
      upon the Indenture Trustee, under this Indenture;

                  (iv)  The Indenture Trustee shall not be charged with
      knowledge of any Event of Servicing Termination, any Event of Default or
      Restricting Event unless a Responsible Officer of the Indenture Trustee
      obtains actual knowledge of such failure or event or the Indenture Trustee
      receives written notice of such failure or event from the Servicer, the
      Issuers or any Noteholder;

                  (v)   The Indenture Trustee shall have no duty to monitor the
      performance of the Servicer, nor shall it have any liability in connection
      with the malfeasance or nonfeasance by the Servicer. The Indenture Trustee
      shall have no liability in connection with compliance of the Servicer, the
      Back-up Servicer or the Issuers with statutory or regulatory requirements
      related to the Contracts or the related Equipment, or any of the
      Transaction Documents. Except as set forth in Section 7.16 hereof, the
      Indenture Trustee shall not make or be deemed to have made any
      representations or warranties with respect to itself, the Transaction
      Documents or the Contracts or related Equipment or the validity or
      sufficiency of any assignment of the Contracts to the Issuers or the
      Indenture Trustee. The Indenture Trustee shall have no obligation or
      liability in respect of the maintenance of casualty or liability insurance
      in connection with the Contracts or the related Equipment;

                  (vi)  The Indenture Trustee shall have no duty to monitor the
      performance of the Issuers, the Custodian or the Back-up Servicer, nor
      shall it have any liability in connection with the malfeasance or
      nonfeasance by the Issuers, the Custodian or the Back-up Servicer in the
      maintenance of the Contract Files or otherwise;

                  (vii) Except as expressly set forth in the Transaction
      Documents, the Indenture Trustee shall have no obligation to administer,
      service or collect monies in respect of the Contracts or related
      Equipment;

                                      -44-
<PAGE>   50
                  (viii)The Indenture Trustee shall have no obligation to
      execute and file such financing, continuation or other statements or take
      any action to maintain perfection of the Receivables except as expressly
      provided for herein; nor shall it have any liability in connection with
      the execution and filing of financing, continuation and other statements
      by the Issuers; and

                  (ix)  The Indenture Trustee shall not be liable with respect
      to any action taken or omitted to be taken by it in good faith in
      accordance with any direction of the Majority Holders given under this
      Indenture.

            (d)   The Indenture Trustee shall not be required to expend or risk
its own funds or otherwise incur any liability, financial or otherwise, 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 ground for believing that the
repayment of such funds or indemnity satisfactory to it against such risk or
liability is not assured to it, and none of the provisions contained in this
Indenture shall in any event require the Indenture Trustee to perform, or be
responsible for the manner of performance of, any of the obligations of the
Servicer under this Indenture or the Servicing Agreement except during such
time, if any, as the Indenture Trustee shall be the successor to, and be vested
with the rights, duties, powers and privileges of, the Servicer in accordance
with the terms of this Indenture.

            (e)   On each Determination Date, the Indenture Trustee shall give
notice, by facsimile, to a Servicing Officer of the Servicer if the Available
Funds on deposit in the Collection Account as of such Determination Date is less
than the amount indicated in the Monthly Statement.

            Section 7.02 Eligible Investments. So long as no Event of Default or
Event of Servicing Termination has occurred and is continuing, the Servicer
shall direct the Indenture Trustee to invest in Eligible Investments, as further
specified from time to time by written notice to the Indenture Trustee executed
by a Servicing Officer, any cash amounts deposited in the Collection Account,
the Pre-Funding Account, the Capitalized Interest Account, the Reserve Account
and the Residual Payment Account pursuant to the terms of this Indenture or the
Servicing Agreement, immediately upon deposit of any such cash amounts;
provided, however, that each such Eligible Investment (i) shall mature no later
than the Business Day immediately preceding the Payment Date in respect of the
Collection Period during which such deposit was made and (ii) shall not be sold
or disposed of prior to its maturity. The Indenture Trustee shall not be liable
or responsible for the selection of or losses on any investments made by it
pursuant to and in compliance with such instructions of the Servicer pursuant to
this Section 7.02. In the absence of such written direction or if an Event of
Default or Event of Servicing Termination has occurred and is continuing, the
Indenture Trustee shall invest such amounts in money market funds which comply
with the requirements of clause (a)(iv) of the definition of Eligible
Investments. Except as expressly provided in this Section 7.02, the Indenture
Trustee shall have no obligation to invest or reinvest any cash held in any of
the Accounts in the absence of timely and specific written investment directions
from the Servicer. Notwithstanding this Section 7.02, the Indenture Trustee
shall have no liability in respect of losses incurred as a result of the
liquidation of any investment prior to its stated maturity so long as such early
disposition is permitted hereunder, or the failure of the Servicer to provide
timely written investment direction.

                                      -45-
<PAGE>   51
            Section 7.03 Indenture Trustee's Assignment of Contracts. If in any
enforcement suit or legal proceeding it is held, or in connection with the
collection of a Defaulted Contract the Servicer or its assigns reasonably
anticipates, that the Servicer or its assigns may not or will not be able to
enforce a Contract on the ground that neither the Servicer nor its assigns is a
real party in interest or a holder entitled to enforce the Contract, then the
Indenture Trustee shall, at the Servicer's or its assigns' expense and
direction, take such steps as the Indenture Trustee is reasonably directed in
writing to take to enforce the Contract, including (i) bringing suit in the
Indenture Trustee's name or the names of the Noteholders and (ii) executing and
delivering all such instruments or documents prepared by the Servicer as shall
be required to transfer title to a Contract to the Servicer or its assigns or
otherwise enforce such Contract.

            Section 7.04 Certain Matters Affecting the Indenture Trustee. Except
as otherwise provided in Section 7.01:

                  (i)   The Indenture Trustee may conclusively rely and shall be
      fully protected in acting or refraining from acting upon any resolution,
      Officers' Certificate, certificate of auditors or any other certificate,
      statement, instrument, opinion, report, notice, request, consent, order,
      appraisal, bond or other paper or document believed by it to be genuine
      and to have been signed or presented by the proper party or parties;

                  (ii)  The Indenture Trustee may consult with counsel, and any
      Opinion of Counsel or advice shall constitute 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 Opinion
      of Counsel or advice;

                  (iii) The Indenture Trustee shall be under no obligation to
      exercise any of the rights or powers vested in it by this Indenture, or to
      institute, conduct or defend any litigation hereunder or in relation
      hereto, at the request, order or direction of any of the Noteholders,
      pursuant to the provisions of this Indenture unless such Noteholders shall
      have offered to the Indenture Trustee such security or indemnity
      satisfactory to it against the costs, expenses, and liabilities that may
      be incurred therein or thereby that are reasonable in the opinion of the
      Indenture Trustee; provided, however, that nothing contained herein shall
      relieve the Indenture Trustee of the obligations, upon the occurrence of
      an Event of Default (that has not been cured), to exercise such of the
      rights and powers vested in it by this Indenture and to use the same
      degree of skill and care in their exercise as a prudent Person would
      exercise under the circumstances in the conduct of such Person's own
      affairs;

                  (iv)  Neither the Indenture Trustee nor any of its officers,
      directors, employees or agents shall be personally liable for any action
      taken, suffered or omitted by it under this Indenture or in connection
      therewith, 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;

                  (v)   Prior to the occurrence of an Event of Default of which
      a Responsible Officer of the Indenture Trustee shall have actual knowledge
      and after the

                                      -46-
<PAGE>   52
      curing of all Events of Default that may have occurred, the Indenture
      Trustee shall not be bound to make any investigation into the facts or
      matters stated in any resolution, certificate, statement, instrument,
      opinion, report, notice, request, consent, entitlement, order, approval,
      bond or other paper or document, unless requested in writing to do so by
      the Holders of Notes evidencing Percentage Interests of not less than 25%
      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, the
      Indenture Trustee may require indemnity satisfactory to it against such
      cost, expense or liability as a condition to so proceeding. The reasonable
      expense of every such examination shall be paid by the requesting party;

                  (vi)  The Indenture Trustee may execute any of the trusts or
      powers or perform any duties hereunder either directly or by or through
      agents or attorneys or a custodian. The Indenture Trustee shall not be
      responsible for the misconduct, negligence or for the supervision of any
      of the Indenture Trustee's agents or attorneys appointed with due care by
      the Indenture Trustee hereunder or that of the Originator, the Servicer or
      the Issuers; and

                  (vii) Whenever in the administration of the provisions of this
      Indenture or the other Transaction Documents, the Indenture Trustee shall
      deem it necessary or desirable that a matter be proved or established
      prior to taking or suffering any action to be taken hereunder, such matter
      (unless other evidence in respect thereof be herein specifically
      prescribed) may, in the absence of gross negligence or bad faith on the
      part of the Indenture Trustee, be deemed to be conclusively proved and
      established by a certificate signed by an Authorized Officer of the
      Issuers or the Servicer and delivered to the Indenture Trustee and such
      certificate, in the absence of gross negligence or bad faith on the part
      of the Indenture Trustee, shall be full warrant to the Indenture Trustee
      for any action taken, suffered or omitted by it under the provisions of
      this Indenture upon the faith thereof; provided, however, nothing
      contained herein shall delay any action by the Indenture Trustee upon
      direction of the Majority Holders.

            Section 7.05 Indenture Trustee Not Liable for Notes or Contracts.
The Notes do not represent an obligation issued by the Indenture Trustee or any
Affiliate thereof. The Notes, in accordance with their terms and the terms of
this Indenture, provide recourse only to the Pledged Property. The Indenture
Trustee does not assume any responsibility for the accuracy of the statements
herein or in the Notes (other than as set forth in Section 7.16 and the
certificate of authentication on the Notes). The Indenture Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Notes (other than the certificate of authentication on the Notes) or of any
Contract or related document. The Indenture Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity or
enforceability of any security interest in any Equipment or any Contract, to the
perfection or priority thereof, or to the ability of the Issuers to pay any
Note, the existence or validity of any Contract, the validity of the assignment
of any Contract or the related Pledged Property to the Issuers or of any
intervening assignment, except as otherwise provided in the Transaction
Documents with respect to the review of the Computer Tape or the completeness of
any Contract File, other than the documents

                                      -47-
<PAGE>   53
listed in the List of Contracts provided to the Indenture Trustee (it being
understood that neither the Indenture Trustee nor any of its agents have
reviewed or intend to review such matters, except as otherwise provided in the
Transaction Documents, the sole responsibility for such review being vested in
the Issuers or the Servicer, as applicable), the performance or enforcement of
any Contract, the compliance by the Issuers with any covenant or the breach by
the Originators, the Servicer or the Issuers of any representation or warranty
made under the Servicing Agreement, the Receivables Transfer Agreement or in any
related document or the accuracy of any such representation or warranty any
investment of monies in the Collection Account (except to the extent that the
Indenture Trustee, in its individual capacity, is an obligor with respect to any
such investment) or any loss resulting therefrom, the acts or omissions of the
Servicer or any Obligor, any action of the Servicer taken in the name of the
Indenture Trustee, any action by the Indenture Trustee taken at the instruction
of the Servicer or the preparation and filing of tax returns for the Issuers. No
recourse shall be had for any claim based on any provision of this Indenture,
the Notes, or any Contract or assignment thereof against BNY Midwest Trust
Company or its officers, directors, employees or agents in their individual
capacities, and BNY Midwest Trust Company or its officers, directors, employees
or agents shall not have any personal obligation, liability or duty whatsoever
to any Noteholder or any other Person with respect to any such claim, and any
such claim shall be asserted solely against the Issuers or any indemnitor who
shall furnish indemnity as provided herein, except for such liability as is
determined to have resulted from its own gross negligence or willful misconduct.
The Indenture Trustee shall not be accountable for the use or application by the
Issuers of any of the Notes or the proceeds of the Notes or for the use or
application of any funds paid to the Servicer in respect of the Contracts.

            Section 7.06 Indenture Trustee May Own Notes. The Indenture Trustee
in its individual or any other capacity may become the owner or pledgee of Notes
with the same rights as it would have if it were not Indenture Trustee, subject
to the definition of the term "Noteholder" in Annex A hereto.

            Section 7.07 Indenture Trustee's Fees and Expenses. (a) Each of the
Issuers jointly and severally agrees:

                  (i)   to pay to the Indenture Trustee, pursuant to Section
      3.04(b)(I)(i), as applicable, on each Payment Date reasonable compensation
      for all services rendered by it hereunder (which compensation shall not be
      limited by any provision of law in regard to the compensation of a Trustee
      of an express trust); and

                  (ii)  except to the extent otherwise expressly provided
      herein, to reimburse the Indenture Trustee, pursuant to Section
      3.05(b)(I)(i), as applicable, upon its request, for all reasonable
      out-of-pocket expenses incurred by the Indenture Trustee in accordance
      with any provision of this Indenture (including the reasonable
      compensation and expenses and disbursements of any of its agents and
      counsel), except any such expense as may be attributable to its gross
      negligence, bad faith or willful misconduct.

            (b)   The Issuers' obligations under this Section 7.07 shall survive
the termination of this Indenture or the earlier resignation or removal of the
Indenture Trustee. The

                                      -48-
<PAGE>   54
Indenture Trustee shall not be entitled to any other or additional compensation
or reimbursement, except as expressly provided herein or as otherwise agreed
from time to time.

            (c)   Subject to Section 7.09 hereof, the failure by the Issuers to
pay to the Indenture Trustee any compensation or other expenses shall not
relieve the Indenture Trustee of its obligations hereunder.

            (d)   In the event the Indenture Trustee performs services or incurs
expenses in the context of a proceeding described in Sections 6.02 of the
Servicing Agreement, the fees for such services and such expenses shall be
considered expenses of administration for the purposes of any bankruptcy laws or
laws relating to creditors rights generally.

            Section 7.08 Eligibility Requirements for Indenture Trustee. The
Indenture Trustee hereunder shall at all times be organized and doing business
under the laws of any State or the United States of America, authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by
federal or State authority; provided, however, that no entity shall qualify as
Indenture Trustee hereunder to the extent that such qualification would, in
itself, affect any then current rating of the Notes by the Rating Agencies. If
such entity publishes reports of condition at least annually, pursuant to law or
the requirements of the aforesaid supervising or examining authority, then for
the purpose of this Section 7.08, the combined capital and surplus of such
entity shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. Any successor Indenture
Trustee's deposit ratings shall be at least "investment grade" by the Rating
Agencies. In case at any time the Indenture Trustee shall cease to be eligible
in accordance with the provisions of this Section 7.08, the Indenture Trustee
shall resign immediately in the manner and with the effect specified in Section
7.09 hereof.

            Section 7.09 Resignation or Removal of Indenture Trustee. (a) The
Indenture Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice thereof to the Servicer, the Issuers,
and each Noteholder, which resignation will not become effective until such time
as a successor Indenture Trustee has been appointed in accordance with the
provisions of this Section 7.09. Upon receiving such notice of resignation, the
Servicer shall promptly appoint a successor Indenture Trustee acceptable to the
Majority Holders, by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Indenture Trustee and one copy to
the successor Indenture Trustee. If no successor Indenture Trustee shall have
been so appointed and have accepted appointment within 30 days after the giving
of such notice of resignation, the resigning Indenture Trustee may petition any
court of competent jurisdiction for the appointment of a successor Indenture
Trustee.

            (b)   If at any time the Indenture Trustee shall cease to be
eligible in accordance with the provisions of Section 7.08 hereof and shall fail
to resign after written request therefor by the Servicer, or the Holders of
Notes of any Class evidencing Percentage Interests of more than 25% of such
Class, if at any time the Indenture Trustee shall be legally unable to act, or
shall be adjudged a bankrupt or insolvent, or a receiver of the Indenture
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Indenture Trustee or of its property or affairs for the
purpose of rehabilitation, conservation, or liquidation, then the Servicer
shall, at the direction of the Holders of Notes of any Class evidencing
Percentage

                                      -49-
<PAGE>   55
Interests of more than 25% of the related Class, remove the Indenture Trustee.
Notwithstanding anything in this Indenture to the contrary, the Majority Holders
shall have the right to remove the Indenture Trustee for "cause." For purposes
of this section, "cause" shall mean (i) the gross negligence, bad faith or
willful misconduct of the Indenture Trustee in the performance of its duties
under this Indenture or (ii) the failure or unwillingness of the Indenture
Trustee to perform its duties under this Indenture. In the event that the
Indenture Trustee is removed by the Majority Holders pursuant to this Section,
the removal and substitution procedures set forth in this Section 7.09 and
Section 7.10 hereof shall be followed.

            (c)   Any resignation or removal of the Indenture Trustee and
appointment of a successor Indenture Trustee pursuant to this Section 7.09 shall
not become effective until acceptance of appointment by the successor Indenture
Trustee as provided in Section 7.10 hereof. Notice of the resignation or removal
of the Indenture Trustee shall be given in writing to the Rating Agencies by the
Servicer. In the event no successor Indenture Trustee has been appointed within
30 days of the resignation or removal of the Indenture Trustee, the Indenture
Trustee or the Majority Holders of the Notes may petition a court of competent
jurisdiction to appoint a successor Indenture Trustee.

            Section 7.10 Successor Indenture Trustee. (a) Any successor
Indenture Trustee appointed as provided in Section 7.09 hereof shall execute,
acknowledge and deliver to the Servicer, the Issuers and predecessor Indenture
Trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor Indenture Trustee shall become
effective, and such successor Indenture Trustee, without any further act, deed
or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as Indenture Trustee. The predecessor Indenture Trustee shall deliver to
the successor Indenture Trustee all documents and statements held by it
hereunder. The Servicer, the Issuers and the predecessor Indenture Trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for fully and certainly vesting and confirming in the successor
Indenture Trustee all such rights, powers, duties and obligations. The
predecessor Indenture Trustee shall not be liable for the acts or omissions of
any successor Indenture Trustee hereunder.

            (b)   No successor Indenture Trustee shall accept appointment as
provided in this Section 7.10 unless at the time of such acceptance such
successor Indenture Trustee shall be eligible as the Indenture Trustee under the
provisions of Section 7.08 hereof, and as a successor Servicer under the
provisions of Section 6.02 of the Servicing Agreement.

            (c)   Upon acceptance of appointment by a successor Indenture
Trustee as provided in this Section 7.10, the Servicer shall mail notice of the
succession of such Indenture Trustee hereunder to all Noteholders at their
addresses as shown in the Note Register. If the Servicer fails to mail such
notice within 10 days after acceptance of appointment by such successor
Indenture Trustee, then the successor Indenture Trustee shall cause such notice
to be mailed at the expense of the Servicer.

            Section 7.11 Merger or Consolidation of Indenture Trustee. Any
entity into which the Indenture Trustee may be merged or converted or with which
it may be consolidated, or any entity resulting from any merger, conversion, or
consolidation to which the Indenture

                                      -50-
<PAGE>   56
Trustee shall be a party, or any entity succeeding to the corporate trust
business of the Indenture Trustee, shall be the successor of the Indenture
Trustee hereunder, provided such entity shall be eligible under the provisions
of Section 7.08 hereof, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

            Section 7.12 Appointment of Co-Indenture Trustee or Separate
Indenture Trustee. (a) Notwithstanding any other provisions of this Indenture,
at any time, for the purpose of meeting any legal requirements of any
jurisdiction in which any part of Pledged Property or any Equipment may at the
time be located, the Indenture Trustee shall execute and deliver all instruments
to appoint one or more Persons approved by the Indenture Trustee to act as
co-Indenture Trustee or co-Indenture Trustees, jointly with the Indenture
Trustee, or separate Indenture Trustee or separate Indenture Trustees, to vest
in such Person or Persons, in such capacity and for the benefit of the
Noteholders such title to the Pledged Property, or any part thereof, and,
subject to the other provisions of this Section 7.12, such powers, duties,
obligations, rights and trusts as the Servicer, the Issuers and the Indenture
Trustee may consider necessary or desirable; provided, however, that if there is
a conflict between the Issuers and the Indenture Trustee regarding the
appointment of a co-Indenture Trustee or separate Indenture Trustee, the
decision of the Indenture Trustee shall prevail. If the Servicer shall not have
joined in such appointment within 15 days after the receipt by it of a request
so to do, or in the case an Event of Servicing Termination shall have occurred
and be continuing, the Indenture Trustee alone shall have the power to make such
appointment; provided, however, that if the Issuers shall not have joined in
such appointment within 15 days after the receipt by them 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 as a successor Indenture Trustee under Section
7.08 hereof, and no notice to Noteholders of the appointment of any co-Indenture
Trustee or separate Indenture Trustee shall be required under Section 7.10
hereof.

            (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 (whether as Indenture
      Trustee hereunder or as successor to the Servicer hereunder), 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 Pledged Property 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;

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<PAGE>   57
                  (ii)  No separate Indenture Trustee or co-Indenture Trustee
      hereunder shall be personally liable by reason of any act or omission of
      any other separate Indenture Trustee or co-Indenture Trustee hereunder;
      and

                  (iii) The Indenture Trustee 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 VII. 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 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 Servicer and the Issuers.

            (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, then 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
separate Indenture Trustee or successor co-Indenture Trustee.

            (e)   The Indenture Trustee shall be responsible for the payment of
any fees or expenses of any separate Indenture Trustee or co-Indenture Trustee,
which fees and expenses shall be reimbursable to the Indenture Trustee pursuant
to Section 7.07(a).

            Section 7.13 Indenture Trustee May Enforce Claims Without Possession
of Note. All rights of action and claims under this Indenture or the Notes may
be prosecuted and enforced by the Indenture Trustee without the possession of
any of the Notes or the production thereof in any proceeding relating thereto,
and any such proceeding instituted by the Indenture Trustee shall be brought in
its own name or in its capacity as Indenture Trustee. Any recovery of judgment
shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee, its agents and counsel, be
for the ratable benefit of the Noteholders in respect of which such judgment has
been recovered.

            Section 7.14 Suits for Enforcement. In case an Event of Servicing
Termination or other default by the Servicer under the Servicing Agreement or
under this Indenture shall occur and be continuing, the Indenture Trustee, in
its discretion, may, subject to the provisions of 6.04 of the Servicing
Agreement, proceed to protect and enforce its rights and the rights of the
Noteholders under this Indenture by a suit, action or proceeding in equity or at
law or otherwise, whether for the specific performance of any covenant or
agreement contained in this Indenture or

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<PAGE>   58
in aid of the execution of any power granted in this Indenture or for the
enforcement of any other legal, equitable or other remedy, as the Indenture
Trustee, being advised by counsel, shall deem most effectual to protect and
enforce any of the rights of the Indenture Trustee and the Noteholders.

            Section 7.15 Undertaking for Costs. All parties to this Indenture
agree (and each holder of any Note by its acceptance thereof shall be deemed to
have agreed) that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Indenture Trustee, to any suit instituted by any Noteholder, or group of
Noteholders, holding in the aggregate more than 10% of the then outstanding
principal balance of the Notes, or to any suit instituted by any Noteholder for
the enforcement of the payment of the principal of or interest on any Note on or
after the maturities for such payments, including the stated maturity as
applicable.

            Section 7.16 Representations and Warranties of Indenture Trustee.
The Indenture Trustee represents and warrants for the benefit of the Noteholders
that:

            (a)   Organization and Good Standing. The Indenture Trustee is an
Illinois corporation duly organized, validly existing and in good standing under
the laws of the State of Illinois.

            (b)   Authorization. The Indenture Trustee has the power, authority
and legal right to execute, deliver and perform this Indenture, and the
execution, delivery and performance of this Indenture have been duly authorized
by the Indenture Trustee by all necessary corporate action.

            (c)   Binding Obligations. This Indenture, assuming due
authorization, execution and delivery by all other parties thereto, constitutes
the legal, valid and binding obligation of the Indenture Trustee, enforceable
against the Indenture Trustee in accordance with its terms, except that (i) such
enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium
or other similar laws (whether statutory, regulatory or decisional) now or
hereafter in effect relating to creditors' rights generally and the rights of
trust companies in particular and (ii) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to certain
equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought, whether in a proceeding at law or in equity.

            (d)   Eligibility. The Indenture Trustee meets the eligibility
requirements set forth in Section 7.08.

            Section 7.17 Tax Returns. In the event the Issuers shall be required
to file tax returns, the Servicer shall prepare or shall cause to be prepared
any tax returns required to be

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<PAGE>   59
filed by the Issuers and shall remit such returns to the Issuers for signature
at least five days before such returns are due to be filed. The Indenture
Trustee, upon request, will furnish the Servicer with all such information in
the possession of the Indenture Trustee as may be reasonably required in
connection with the preparation of all tax returns of the Issuers. In no event
shall the Indenture Trustee in its individual capacity be liable for any
liabilities, costs or expenses of the Issuers, the Noteholders or the Servicer
arising under any tax law or regulation, including, without limitation, federal,
state or local income or excise taxes or any other tax imposed on or measured by
income (or any interest or penalty with respect thereto or arising from any
failure to comply therewith).

            Section 7.18 Securities Accounts. The Indenture Trustee hereby
represents that in the ordinary course of its business it maintains Securities
Accounts for others and is acting in that capacity hereunder as Securities
Intermediary. The Indenture Trustee hereby confirms that (i) the Indenture
Trustee has established the Accounts, (ii) the Accounts are Securities Accounts
to which financial assets are or may be credited, (iii) the Indenture Trustee,
subject to the terms of this Agreement, shall treat the Noteholders as entitled
to exercise the rights that comprise any financial asset credited to the
Accounts, (iv) all property delivered to the Indenture Trustee pursuant to this
Indenture for deposit to the Accounts will, to the extent specified in this
Indenture, promptly be credited to the Accounts and (v) all securities or other
property underlying any financial assets credited to the Accounts shall be
registered in the name of the Indenture Trustee, endorsed to the Indenture
Trustee or in blank or credited to another securities account maintained in the
name of the Indenture Trustee and in no case will any financial asset credited
to the Accounts be registered in the name of the Issuers, payable to the order
of the Issuers or specifically endorsed to the Issuers except to the extent the
foregoing have been specially endorsed to the Indenture Trustee or in blank.

            Section 7.19 "Financial Assets" Election. The Indenture Trustee
hereby agrees that each item of property (whether investment property, financial
asset, security, instrument or cash) credited to the Accounts shall be treated
as a "Financial Asset" within the meaning of Section 8-102(a)(9) of the UCC.

            Section 7.20 Entitlement Orders. If at any time the Indenture
Trustee shall receive any Entitlement Order from the Indenture Trustee with
respect to the Accounts, the Indenture Trustee shall comply with such
Entitlement Order without further consent by the Issuers or any other Person.

                                  ARTICLE VIII

                           EVENTS OF DEFAULT; REMEDIES

            Section 8.01 Events of Default. "Event of Default" wherever used
herein means any one of the following events (whatever the reason for such Event
of Default and without regard to 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):

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<PAGE>   60
            (a)   failure of the Issuers to distribute or cause to be
distributed to the Indenture Trustee, for the benefit of the Noteholders, all or
part of any payment of interest required to be made under the terms of such
Notes or this Indenture on each monthly Payment Date when such amount is due and
payable;

            (b)   failure of the Issuers to distribute or cause to be
distributed to the Indenture Trustee, for the benefit of the Noteholders (x) on
any Payment Date, an amount equal to the principal due on the Outstanding Notes,
as of such Payment Date to the extent that sufficient Available Funds are on
deposit in the Collection Account or (y) on the Class A Maturity Date, the Class
B Maturity Date, the Class C Maturity Date, the Class D Maturity Date, the Class
E Maturity Date, the Class F Maturity Date or the VFN Maturity Date, as the case
may be, any remaining principal owed on such Class of Notes, and in either case,
such failure has not been cured within three Business Days of such Payment Date
or Maturity Date, as applicable;

            (c)   failure on the part of the Issuers to duly observe or perform
any other covenants or agreements of the Issuers set forth in this Indenture or
the other Transactions Documents to which the Issuers are a party, which failure
continues unremedied for a period of 30 days after the earlier to occur of (x)
the date on which written notice of such failure, requiring the situation giving
rise to such failure to be remedied, shall have been given to the Issuers by the
Indenture Trustee or any Noteholder or (y) the date on which the Issuers have
actual knowledge or should have knowledge of such failure or are required
pursuant to the terms of this Indenture to provide notice to the Indenture
Trustee and the Noteholders of any such failure;

            (d)   the entry by a court having jurisdiction in the premises of
(A) a decree or order for relief in respect of either of the Issuers in an
involuntary case or proceeding under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order
adjudging either of the Issuers a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of either of the Issuers under any applicable
federal or state law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of either of the Issuers or of
any substantial part of their respective property, or ordering the winding up or
liquidation of their respective 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;

            (e)   the commencement by either of the Issuers 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 as bankrupt or insolvent, or the consent by either of the Issuers to
the entry of a decree or order for relief in respect of such Issuer in an
involuntary case or proceeding under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against such Issuer, or the filing
by either of the Issuers of a petition or answer or consent seeking
reorganization or relief under any applicable federal or state law, or the
consent by either of the Issuers 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 such Issuer or of any
substantial part of such Issuer's property, or the making by either of the
Issuers of an assignment for the benefit of creditors;

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<PAGE>   61
            (f)   either of the Issuers becomes subject to regulation by the
Securities and Exchange Commission as an investment company within the meaning
of the Investment Company Act of 1940, as amended;

            (g)   failure of the Indenture Trustee to have a first priority,
perfected security interest in any portion of the Pledged Property (in
accordance with the Filing Requirements) which continues unremedied for a period
of two Business Days after the earlier to occur of (x) the date on which written
notice of such failure, requiring the situation giving rise to such failure to
be remedied, shall have been given to the Issuers by the Indenture Trustee or
any Noteholder or (y) the date on which the Issuers have actual knowledge or
should have knowledge of such failure or are required pursuant to the terms of
the Indenture to provide notice to the Indenture Trustee and the Noteholders of
any such failure; or

            (h)   there shall have occurred any misappropriation or
misapplication of funds or other failure on the part of the Servicer, or any of
its Affiliates, to pay or deposit any amounts required to be paid or deposited
pursuant to the Servicing Agreement or the Indenture (other than any such
instances which, considered singularly or in the aggregate, are immaterial).

            Section 8.02 Acceleration of Maturity, Rescission and Annulment. (a)
If an Event of Default occurs and is continuing, then and in every such case the
Indenture Trustee, at the written direction of the Majority Holders, shall
declare the principal of all of the Notes to be immediately due and payable,
without presentment, demand, protest or other notice of any kind, all of which
have been waived by the Issuers, and upon any such declaration such principal
(together with all accrued and previously unpaid interest) shall become
immediately due and payable. The Indenture Trustee shall give prompt notice to
each Noteholder, the Originators, the Servicer and the Rating Agencies of such
declaration.

            (b)   At any time, after such a declaration of acceleration has been
made, but before any sale of the Pledged Property has been made or a judgment or
decree for payment of the money due has been obtained by the Indenture Trustee
as hereinafter in this Article VIII provided, the Majority Holders, by written
notice to the Servicer and the Indenture Trustee, may rescind and annul such
declaration and its consequence if monies have been paid or deposited with the
Indenture Trustee in a sum sufficient to pay:

                  (i)   all overdue installments of interest on all Notes;

                  (ii)  the principal of any of the Notes which has become due
      otherwise than by such declaration of acceleration and interest thereon at
      the applicable Note Rate;

                  (iii) to the extent that payment of such interest is lawful,
      interest upon overdue installments of interest on the Notes at the rate
      specified therefor in the applicable Notes; and

                  (iv)  all sums paid or advanced, together with interest
      thereon, by the Indenture Trustee hereunder and the reasonable
      compensation, expenses, disbursements and advances of the Indenture
      Trustee and its agents and counsel.

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<PAGE>   62
No such rescission shall affect any subsequent default or impair any right
consequent thereon. Subsequent to any such declaration of acceleration and so
long as such declaration and its consequences have not been rescinded and
annulled, prior to the exercise by the Indenture Trustee of the remedies set
forth in Section 8.03(b) or (c) hereof, the Indenture Trustee shall give the
Noteholders ten days notice of its intention to take such actions.

            Section 8.03 Remedies. (a) If an Event of Default shall have
occurred and be continuing, the Indenture Trustee, if so directed in writing by
the Majority Holders, shall do one or more of the following:

                  (i)   institute, in its own name and as Indenture Trustee,
      Proceedings for the collection of the entire amount of principal and
      interest remaining unpaid on the Notes, or under this Indenture in respect
      of the Notes, whether by declaration or otherwise, enforce any judgment
      obtained, and collect from the Pledged Property the monies adjudged due;

                  (ii)  sell the Pledged Property or any portion thereof or
      rights or interest therein, at one or more sales called and conducted in
      any manner permitted by law;

                  (iii) institute Proceedings from time to time for the complete
      or partial foreclosure of this Indenture with respect to the Pledged
      Property securing the Notes; and/or

                  (iv)  exercise any other remedies of a secured party under the
      UCC or other applicable law and take any other appropriate action to
      protect and enforce the rights and remedies of the Indenture Trustee or
      the Noteholders hereunder or under the other Transaction Documents,
      including delivery of notices to the Obligors of the assignment of the
      related Contract(s) to the Issuers and delivery of notices to any
      guarantors of Contracts of the assignment of the related guarantee to the
      Issuers, and in each case, the pledge of such assigned property to the
      Indenture Trustee on behalf of the Noteholders.

            (b)   Notwithstanding the forgoing, if, at the time of any sale of
the Pledged Property solely as a result of the Event of Default set forth in
Section 8.01(h) above, there are any Class A Notes, any Class B Notes, any Class
C Notes, any Class D Notes, any Class E Notes, any Class F Notes or any VFN
Notes Outstanding, the proceeds of that sale, together with other moneys
available, must be at least sufficient to pay in full all outstanding amounts
due on that Class subject to the priorities set forth in Section 8.07 below,
unless any Person listed in Section 8.07 below otherwise waives receiving the
full amount due to that Person; in the case of Notes then owned by HPSC or an
Affiliate of HPSC, such Note shall not be considered Outstanding. In the case of
the Noteholders of any Class, the unanimous consent of the Holders of that Class
is required to accept less than the full amount due on account of that Class.

            Section 8.04 Notice of Event of Default. Subject to Article VII,
within two Business Days after a Responsible Officer of the Indenture Trustee
obtains actual knowledge of the occurrence of any Event of Default, the
Indenture Trustee shall transmit, by certified mail return receipt requested,
hand delivery, overnight courier or facsimile, to all Noteholders, as their

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names and addresses appear in the Register, notice of such Event of Default,
unless such Event of Default shall have been cured or waived.

            Section 8.05 Exercise of Power by Indenture Trustee. In case an
Event of Default has occurred and is continuing to the actual knowledge of a
Responsible Officer of the Indenture Trustee, the Indenture Trustee shall
exercise such of 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 his own affairs.

            Section 8.06 Indenture Trustee May File Proofs of Claim. In case of
the pendency of any receivership, insolvency, liquidation, reorganization,
arrangement, adjustment, composition or other judicial Proceeding relating to
either of the Issuers or any other obligor upon the Notes or the property of
either of the Issuers or of such other obligor or their creditors, the Indenture
Trustee (irrespective of whether the principal of any Class of 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 for the
payment of overdue principal or interest) shall be entitled and empowered, to
intervene in such proceeding or otherwise:

            (a)   to file and prove a claim for all amounts owing and unpaid in
respect of the Notes or otherwise owed hereunder and to file such other papers
or documents and take such other action including participating as a member,
voting or otherwise, in any committee of creditors appointed in the matter, as
may be necessary or advisable in order to have the claims of the Indenture
Trustee and the Noteholders including, in each case, any claim for the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee, and the Noteholders and their respective agents and counsel) allowed in
such judicial Proceeding;

            (b)   to petition for lifting of the automatic stay and thereupon to
foreclose upon the Pledged Property as elsewhere provided herein; and

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

and any receiver, assignee, trustee, liquidator, or sequestrator (or other
similar official) in any such judicial Proceeding is hereby authorized by each
Noteholder to make such payments to the Indenture Trustee, and in the event that
the Indenture Trustee shall consent to the making of such payments directly to
the Noteholders, to pay to the Indenture Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee, its agents and counsel.

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

            Section 8.07 Allocation of Money Collected. Any money collected by
the Indenture Trustee pursuant to the remedies set forth in Section 8.03 (and
any funds then held or thereafter received by the Indenture Trustee) shall be
applied in the following order, at the date

                                      -58-
<PAGE>   64
or dates fixed by the Indenture Trustee; provided, however, that the provisions
of this Section 8.07 shall not preclude the Indenture Trustee from receiving
indemnities satisfactory to it from or on behalf of the Noteholders against the
costs, expenses and liabilities it may incur in acting in compliance with the
written directions of the Majority Holders; provided, further, that any such
indemnities shall not be withheld or offset from the amounts payable to any
Noteholders pursuant to clauses FIFTH through EIGHTEENTH below:

                        First: to the Indenture Trustee, the Indenture Trustee
Fees then due, and any reasonable out-of-pocket expenses due and owing to the
Indenture Trustee;

                        Second: to the Back-up Servicer, the Back-up Servicer
Fee then due and other amounts owing to the Back-up Servicer;

                        Third: to the Servicer, the Servicer Fee then due,
together with any accrued and unreimbursed Servicer Advances;

                        Fourth: to the Swap Counterparty, the Issuers Swap
Payment;

                        Fifth: to the Class A Noteholders, the Note Interest due
on the Class A Notes;

                        Sixth: to the Class B Noteholders, the Note Interest due
on the Class B Notes;

                        Seventh: to the Class C Noteholders, the Note Interest
due on the Class C Notes;

                        Eighth: to the Class D Noteholders, the Note Interest
due on the Class D Notes;

                        Ninth: to the Class E Noteholders, the Note Interest due
on the Class E Notes;

                        Tenth: to the Class F Noteholders, the Note Interest due
on the Class F Notes;

                        Eleventh: to the Class VFN Noteholders, the Note
Interest due on the Class VFN Notes;

                        Twelfth: to the Class A Noteholders, the outstanding
Note Principal Balance of the Class A Notes;

                        Thirteenth: to the Class B Noteholders, the outstanding
Note Principal Balance of the Class B Notes;

                        Fourteenth: to the Class C Noteholders, the outstanding
Note Principal Balance of the Class C Notes;

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<PAGE>   65
                        Fifteenth: to the Class D Noteholders, the outstanding
Note Principal Balance of the Class D Notes;

                        Sixteenth: to the Class E Noteholders, the outstanding
Note Principal Balance of the Class E Notes;

                        Seventeenth: to the Class F Noteholders and the VFN
Noteholders, pro rata, in accordance with their respective Class Percentage
Interests of the aggregate Note Principal Balance, the outstanding Note
Principal Balance of the Class F Notes and the VFN Notes;

                        Eighteenth: to the payment of all reasonable costs and
expenses incurred by any Noteholder in connection with the enforcement of its
rights under the Notes or any Transaction Documents, ratably, without preference
or priorities of any kind; and

                        Nineteenth: to the Indenture Trustee, to the payment of
any other amounts due to the Indenture Trustee under the Indenture.

                        Twentieth: to the Swap Counterparty, any amounts
relating to the Swap Termination Payments.

                        Twenty-first: to the Issuers, any remaining amounts, pro
rata, in accordance with their respective percentage ownership interest of the
Contracts.

            Section 8.08 Waiver of Events of Default. (a) The holders of 66-2/3%
of the then outstanding principal balance of the Notes may, by one or more
instruments in writing to the Indenture Trustee, waive any Event of Default
hereunder and its consequences, except a continuing Event of Default:

                  (i)   in respect of the payment of the principal of or
      interest on any Note (which may only be waived by the Holder of such
      Note), or

                  (ii)  in respect of a covenant or provision hereof which under
      Article XI cannot be modified or amended without the consent of the Holder
      of each Note outstanding affected (which only may be waived by the Holders
      of all Notes outstanding affected).

            (b)   Upon any such waiver, such Event of Default shall cease to
exist and shall be deemed to have been cured, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Event of
Default or impair any right consequent thereon.

            Section 8.09 Limitation On Suits. No Holder 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:

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

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<PAGE>   66
            (b)   the Majority Holders shall have made written request to the
Indenture Trustee to institute Proceedings 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
indemnity reasonably satisfactory to it against the costs, expenses and
liabilities to be incurred in compliance with such request;

            (d)   the Indenture Trustee for 30 days after its receipt of such
notice, request and offer of indemnity has failed to institute any such
Proceeding; and

            (e)   no direction inconsistent with such written request has been
given to the Indenture Trustee during such 30 day period by the Majority
Holders;

it being understood and intended that no one or more 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 Holders
or to enforce any right under this Indenture, except in the manner herein
provided.

            Section 8.10 Unconditional Right of Noteholders to Receive Principal
and Interest. Notwithstanding any other provision in this Indenture, the
Noteholders shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest on such Note as such principal
and interest becomes due and payable in accordance with the terms of this
Indenture (including, without limitation, the limitation on such payments to the
extent of Available Funds on each Payment Date) and, with the consent of the
Majority Holders, to institute suit for the enforcement of any such payment, and
such right shall not be impaired without the consent of such Noteholder.

            Section 8.11 Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy in accordance with the terms of this Indenture and such Proceeding has
been discontinued or abandoned for any reason, or has been determined adverse 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 hereunder shall
continue as though no such Proceeding has been instituted.

            Section 8.12 Rights and Remedies Cumulative. No right or remedy
herein conferred upon or reserved to the Indenture Trustee or 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 8.13 Delay or Omission Not Waiver. No delay or omission of
the Indenture Trustee or any Noteholder 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

                                      -61-
<PAGE>   67
or an acquiescence therein. Every right and remedy given by this Article or by
law to the Indenture Trustee or the Noteholders, or any of them, may be
exercised from time to time, as often as may be deemed expedient, by the
Indenture Trustee or the Noteholders.

            Section 8.14 Control by Majority Holders. The Majority Holders shall
have the right to direct in writing the decision whether to conduct, and 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 with respect to the Notes; provided, that:

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

            (b)   the Indenture Trustee may take any other action deemed proper
by the Indenture Trustee which is not inconsistent with such direction;
provided, however, that the Indenture Trustee need not take any action which it
determines might involve it in liability or be unjustly prejudicial to the
Holders not consenting.

            Section 8.15 Sale of Pledged Property. (a) The power to effect any
sale pursuant to Section 8.03 hereof shall not be exhausted by any one or more
sales as to any portion of the Pledged Property remaining unsold, but shall
continue unimpaired until the entire Pledged Property securing the Notes shall
have been sold or all amounts payable under this Indenture with respect thereto
shall have been paid. The Indenture Trustee may from time to time postpone any
sale by public announcement made at the time and place of such sale.

            (b)   Any Noteholder may bid for and acquire any portion of the
Pledged Property securing the Notes in connection with any sale thereof.

            (c)   Each of the parties hereby covenants and agrees that a sale of
the entirety of the Contracts, the Equipment and any other collateral servicing
the Contracts by a public sale held not less than ten days after notice thereof
is commercially reasonable.

            (d)   The Indenture Trustee shall execute and deliver an appropriate
instrument of conveyance, provided to it by the Servicer, transferring its
interest (without representation, warranty or recourse) in any portion of the
Pledged Property in connection with a sale thereof. In addition, the Indenture
Trustee is hereby irrevocably appointed the agent and attorney-in-fact of the
Issuers to transfer and convey its interest in any portion of the Pledged
Property in connection with a sale thereof, and to take all action necessary to
effect such sale. No purchaser or transferee at such a sale shall be bound to
ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent or see to the application of any monies.

            Section 8.16 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 Issuers or the
Transferors or by the levy of any execution under such judgment upon any portion
of the Pledged Property or upon any of the assets of the Issuers or the
Transferors.

                                      -62-
<PAGE>   68
            Section 8.17 Certain Rights of the Holders of the Subordinate Notes.
Notwithstanding anything to the contrary set forth herein or in the Servicing
Agreement, the holders of the Subordinate Notes which hold in the aggregate a
Percentage Interest of the Subordinate Notes in excess of 66 and 2/3% may
petition the Indenture Trustee to enforce against the Issuers or the Servicer
any covenants or agreements made by the Servicer or the Issuers, in the event
that the Servicer or the Issuers are then in default thereunder. The Indenture
Trustee may require such petitioning Subordinate Noteholders to post a
reasonable indemnity before the Indenture Trustee is required to act on such
petition. In no event shall the cost of any such enforcement be borne by any
Class A Noteholder. The Subordinate Noteholders will not have the right,
independently (unless they then constitute the Majority Holders and the Majority
Holders are otherwise then permitted to do so) to declare an Event of Servicing
Termination or an Event of Default or otherwise accelerate the Notes or exercise
any remedies or require the exercise of any remedies with respect thereto.

                                   ARTICLE IX

                                   TERMINATION

            Section 9.01 Optional Redemption of Notes; Final Disposition of
Funds. (a) On any Payment Date on which the Aggregate Outstanding Contract
Balance is less than ten percent (10%) of the sum of (x) the Initial Aggregate
Outstanding Contract Balance and (y) the Original Pre-Funded Amount (which as of
the Closing Date, the Servicer hereby represents is the level at which the
Servicer reasonably believes that servicing the Contracts on behalf of the
Noteholders would be economically inefficient), LLC II, on behalf of each of the
Issuers, shall have the option to redeem the Notes in whole by depositing or
causing to be deposited into the Collection Account the sum of (i) the Note
Principal Balance of the Class A Notes, the Class B1 Notes, the Class B2 Notes,
the Class C Notes, the Class D Notes, the Class E Notes, the Class F Notes and
the VFN Notes, (ii) the Note Interest on the Class A Notes, the Class B1 Notes,
the Class B2 Notes, the Class C Notes, the Class D Notes, the Class E Notes, the
Class F Notes and the VFN Notes, due as of such Payment Date, (iii) all
Operating Expenses due as of such Payment Date and (iv) all amounts owing to the
Indenture Trustee and the Servicer pursuant to this Indenture and the Servicing
Agreement as of such Payment Date. In the event that LLC II elects to redeem the
Notes in accordance with this Section 9.01(a), LLC II shall be required to
notify the Indenture Trustee in writing by no later than five (5) Business Days
prior to a notice required to be sent by the Indenture Trustee pursuant to
Section 9.01(b).

            (b)   Notice of any redemption pursuant to Section 9.01(a) shall be
given promptly by the Indenture Trustee, by letter to the Noteholders, mailed
not later than the 10th day of the month immediately preceding the month of such
final Payment Date, and the Indenture Trustee shall request the Luxembourg
Paying and Transfer Agent to publish a notice of such redemption in the
Luxemberger Wort (or in the event the Luxemberger Wort is unavailable, in
another newspaper of general circulation in Luxembourg) no later than such 10th
day, in each case specifying (i) the Payment Date upon which final payment of
the Notes will be made, (ii) the scheduled amount of any such final payment,
(iii) that interest shall cease to accrue on the Notes on such final Payment
Date and (iv) the address for presentation of the Notes for final payment. On
such final Payment Date, the Indenture Trustee shall cause to be distributed the
amounts otherwise distributable on such Payment Date pursuant to Section 3.04
hereof, taking

                                      -63-
<PAGE>   69
into account the redemption pursuant to Section 9.01(a). After such Payment
Date, interest on the Notes shall cease to accrue.

            (c)   In the event that any amount due to any Noteholder remains
unclaimed, the Servicer shall, at its expense, cause to be published once, in
the eastern edition of The Wall Street Journal, notice that such money remains
unclaimed. If, within two years after such publication, such amount remains
unclaimed, the Issuers shall be entitled to all unclaimed funds and other assets
which remain subject hereto, and the Indenture Trustee upon written direction
from the Servicer shall transfer such funds to the Issuers and shall be
discharged of any responsibility for such funds and, the Noteholders shall look
only to the Issuers for payment.

                                   ARTICLE X

                         Noteholders' Lists and Reports

            Section 10.01 Note Registrar To Furnish To Indenture Trustee Names
and Addresses of Noteholders. The Note Registrar will furnish or cause to be
furnished to the Indenture Trustee (a) not more than five days after the earlier
of (i) each Record Date and (ii) three months after the last Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the names
and addresses of the Holders as of such Record Date and (b) at such other times
as the Indenture Trustee may request in writing, within 30 days after receipt by
the Issuer of any such request, a list of similar form and content as of a date
not more than 10 days prior to the time such list is furnished; provided,
however, that so long as the Indenture Trustee is the Note Registrar, no such
list shall be required to be furnished. The Indenture Trustee or, if the
Indenture Trustee is not the Note Registrar, the Note Registrar shall furnish to
the Issuers in writing upon their written request and at such other times as the
Issuers may request a copy of the list of Noteholders.

            Section 10.02 Preservation of Information. 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 and the names and addresses of Noteholders received by the
Indenture Trustee in its capacity as Note Registrar.

            Section 10.03 Compliance Certificates and Opinions, etc. Upon any
application or request by the Issuers to the Indenture Trustee to take any
action under any provision of this Indenture, the Issuers shall furnish to the
Indenture Trustee (i) 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 (ii) 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, 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:

                                      -64-
<PAGE>   70
                  (i)   a statement that each signatory of such certificate or
      opinion has read or has caused to be read such covenant or condition and
      the definitions herein relating thereto;

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

                  (iii) a statement that, in the opinion of each such signatory,
      such signatory has made such examination or investigation as is necessary
      to enable such signatory to express an informed opinion as to whether or
      not such covenant or condition has been complied with; and

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

                                   ARTICLE XI

                               THE SWAP AGREEMENT

            Section 11.01 Amounts Received. Immediately upon receipt, the
Indenture Trustee shall deposit all amounts received in respect of the Swap
Agreement into the Collection Account.

            Section 11.02 Swap Counterparty Downgrade Event.

            (a)   Upon the occurrence of a Swap Counterparty Downgrade Event,
the Indenture Trustee shall, at the Swap Counterparty's expense, deliver written
notice to the Swap Counterparty requesting, in accordance with the Swap
Agreement, that the Swap Counterparty, within 30 days of such notice, assign its
rights and obligations under the Swap Agreement to a Qualified Replacement Swap
Counterparty, or, if a Qualified Replacement Swap Counterparty cannot be found,
an Approved Replacement Swap Counterparty.

            (b)   If at the end of the 30 day period, a Swap Counterparty
Downgrade Event is still continuing and the Swap Counterparty has failed to
assign all of its rights and obligations under the Swap Agreement to a Qualified
Replacement Swap Counterparty or Approved Replacement Swap Counterparty, as
applicable, until a Qualified Replacement Swap Counterparty or Approved
Replacement Swap Counterparty, as applicable, is appointed, the Indenture
Trustee shall either (x) cause the Swap Agreement to be assigned by the Swap
Counterparty to a Replacement Counterparty at the Swap Counterparty's expense,
or (y) maintain the effectiveness of the Swap Agreement with the Swap
Counterparty, provided that the Swap Counterparty must post the greater of: (i)
the mark-to-market value of the swap, (ii) the amount of the next floating
amount payment due under the Swap Agreement, or (iii) 1% of the outstanding
Notional Amount (as such term is defined in the Swap Agreement).

                                      -65-
<PAGE>   71
                                  ARTICLE XII

                            MISCELLANEOUS PROVISIONS

            Section 12.01 Amendment. (a). This Indenture may be amended from
time to time by the Issuers, the Servicer, the Originators and the Indenture
Trustee, without the consent of any of the Noteholders, to cure any ambiguity
herein; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel acceptable to the Indenture Trustee and the Noteholders,
adversely affect in any respect the interests of any Noteholder.

            (b)   This Indenture may also be amended from time to time by the
Issuers, the Servicer, the Originators and the Indenture Trustee with the
consent of the Majority Holders 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 Noteholders and any provisions
hereof may be waived with the consent of the Majority Holders; provided,
however, that no such amendment or waiver shall (i) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, payments that are
required to be made on any Note without the consent of the Holder of such Note
or (ii) reduce the aforesaid percentage required to consent to any such
amendment or waiver, without the consent of the Holders of all Notes then
outstanding.

            (c)   Prior to the effectiveness of any amendment or waiver under
Section 11.01(a) or (b), as applicable, the Rating Agencies shall have confirmed
in writing their respective ratings of the Notes.

            (d)   Promptly after the execution of any such amendment or waiver,
the Indenture Trustee shall furnish a written copy of the text of such amendment
or waiver (and any consent required with respect thereto) to each Noteholder and
the Rating Agencies.

            (e)   Approval of the particular form and substance of any proposed
amendment, waiver or consent shall be necessary for the consent of the
Noteholders under Section 11.01(b). The manner of obtaining such approval,
amendment, waiver or consents and of evidencing the authorization of the
execution thereof by the Noteholders shall be subject to such reasonable
requirements as the Indenture Trustee may prescribe.

            (f)   The Indenture Trustee shall be entitled to receive an
Officers' Certificate and an Opinion of Counsel to the effect that all
conditions precedent to the amendment of this Indenture have been satisfied. The
Indenture Trustee may, but shall not be obligated to, execute and deliver any
such amendment which affects that Indenture Trustee's rights, powers, immunities
or indemnifications hereunder.

            Section 12.02 Limitation on Rights of Noteholders. (a) The death,
dissolution or incapacity of any Noteholder shall not operate to terminate this
Indenture nor entitle such Noteholder's legal representatives or heirs to claim
an accounting or to take any action or commence any proceeding in any court for
a partition or winding up of the Issuers, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

            (b)   It is understood and intended, and expressly covenanted by
each Noteholder with every other Noteholder and the Indenture Trustee, that no
one or more Holders

                                      -66-
<PAGE>   72
of Notes shall have any right in any manner whatever by virtue or by availing
itself or themselves of any provisions of this Indenture to affect, disturb or
prejudice the rights of the Holders of any other of the Notes, to obtain or seek
to obtain priority over or preference to any other Holder of the same class of
Notes or to enforce any right under this Indenture, except in the manner herein
provided and for the equal, ratable and common benefit of all Noteholders of the
same class. For the protection and enforcement of the provisions of this Section
11.02, each and every Noteholder shall be entitled to such relief as can be
given either at law or in equity, but solely to the extent such Noteholder is
otherwise permitted to such relief under any other express provision of this
Indenture.

            Section 12.03 Counterparts. For the purpose of facilitating the
execution of this Indenture and for other purposes, this Indenture may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

            Section 12.04 Governing Law. THIS INDENTURE SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS OF
ANY STATE.

            Section 12.05 Notices. All demands, notices, instructions,
directions and communications hereunder (other than periodic communications of a
routine nature made in connection with the dissemination of information
regarding the Pledged Property, the Servicer and the Issuers required to be
delivered hereunder, which shall be delivered or mailed by first class mail or
facsimile transmission) shall be in writing, personally delivered or mailed by
overnight courier, and shall be deemed to have been duly given upon receipt (a)
in the case of the Servicer, at 60 State Street, Boston Massachusetts
02109-1803, Attention: Rene Lefebvre, telephone 800-225-2488, telecopy
800-526-0259, (b) in the case of the Originators, if to HPSC at 60 State Street,
Boston Massachusetts 02109-1803, Attention: Rene Lefebvre, telephone
800-225-2488, telecopy 800-526-0259, and if to ACFC at 433 South Main Street, W.
Hartford, Connecticut 06110, Attention: Richard Mount, with a copy to Rene
Lefebvre: telephone: 617-720-7251, telecopy 617-723-4786, (c) in the case of the
Issuers, if to LLC I, at 60 State Street, Suite 3520, Boston Massachusetts
02109-1803, Attention: Steven Ballou, telephone 800-225-2488 ext. 4003, telecopy
800-526-0259, and if to LLC II, at 60 State Street, Suite 3520, Boston
Massachusetts 02109-1803, Attention: Steven Ballou, telephone : 800-225-2488,
ext. 4004, telecopy 617-723-4786 with a copy to the Originators as set forth in
clause (b) above, (d) in the case of the Indenture Trustee, at 2 North LaSalle
Street, Suite 1020, Chicago, Illinois 60602, Attention: Structured Finance
Services, telephone 312-827-8569, telecopy 312-827-8562, (e) in the case of S&P,
at 55 Water Street, 40th Floor, New York, NY 10041, Attention: Asset Backed
Surveillance, telephone (212) 438-2000, telecopy (212) 438-2661, (f) in the case
of Fitch, at 55 East Monroe, Suite 3500, Chicago, Illinois 60603 Attention:
Asset Backed Montioring Group (Equipment Leases), telephone (312) 368-0200,
telecopy (312) 368-2069, (g) in the case of Moody's, at 99 Church Street, New
York, New York 10007, Attention: ABS Monitoring Group, telephone (212) 553-0300,
telecopy (212) 298-7139, e-mail: ServicerReports@moodys.com, (h) in the case of
the Initial Purchaser, to Credit Suisse First Boston Corporation at 11 Madison
Avenue, New York, New York 10010, Attention: Asset Finance, telephone number
(212) 325-

                                      -67-
<PAGE>   73
2000, telecopy (212) 325-8261 in the case of the Luxembourg Paying and Transfer
Agent, at Kredietbank S.A. Luxembourgeoise, 43, Boulevard Royal, L-2955,
Luxembourg, Attention: Sandra Cortese, telephone number (352) 4797 3931,
telecopy (352) 4797 73 951. Any notice required or permitted to be mailed to a
Noteholder shall be given by first class mail or overnight mail, postage
prepaid, at the address of such Holder as shown in the Note Register. Any notice
so mailed within the time prescribed in this Indenture shall be conclusively
presumed to have been duly given on the fifth Business Day following mailing,
whether or not the Noteholder receives such notice. A copy of each notice sent
by any party to a Noteholder hereunder shall be promptly sent by such party to
each Rating Agency.

            So long as any Notes are listed on the Luxembourg Stock Exchange,
the Indenture Trustee shall direct the Luxembourg Paying and Transfer Agent to
cause all notices intended for receipt by Noteholders to be published in the
Luxemberger Wort. In the event the Luxemberger Wort is unavailable, the
Indenture Trustee shall direct the Luxembourg Paying and Transfer Agent to
select another newspaper of general circulation in Luxembourg.

            Section 12.06 Waiver of Jury Trial. The Issuers, the Servicer, the
Originators and the Indenture Trustee each hereby waive any right to have a jury
participate in resolving any dispute, sounding in contract, tort, or otherwise
arising out of, connected with, related to, or in connection with this
agreement. Instead, any dispute resolved in court will be resolved in a bench
trial without a jury.

            Section 12.07 Severability of Provisions. If any one or more of the
covenants, agreements, provisions, or terms of this Indenture shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Indenture and shall in no way affect the validity or
enforceability of the other provisions of this Indenture or of the Notes or the
rights of the Holders thereof.

            Section 12.08 Assignment. Notwithstanding anything to the contrary
contained herein, except as provided in Section 5.02 of the Servicing Agreement,
this Indenture may not be assigned by the Servicer except with the prior written
consent of the Majority Holders. Notice of any such assignment received by a
Responsible Officer of the Indenture Trustee shall be given to the Rating
Agencies by the Indenture Trustee.

            Section 12.09 Binding Effect. This Indenture shall inure to the
benefit of, and shall be binding upon the Servicer, the Originators, the
Issuers, the Indenture Trustee, the Noteholders and their respective successors
and permitted assigns, subject, however, to the limitations contained in this
Indenture. This Indenture shall not inure to the benefit of any Person other
than the Issuers, the Servicer, the Originators, the Indenture Trustee and the
Noteholders.

            Section 12.10 Survival of Agreement. All covenants, agreements,
representations and warranties made herein and in the other documents delivered
pursuant hereto shall survive the pledge of the Pledged Property and the
issuance of the Notes and shall continue in full force and effect until payment
in full of the Notes and all amounts owing to the Indenture Trustee hereunder
and under the other Transaction Documents, as applicable.

                                      -68-
<PAGE>   74
            Section 12.11 Captions. The captions or headings in this Indenture
are for convenience only and in no way define, limit or describe the scope or
intent of any provisions or sections of this Indenture.

            Section 12.12 Annexes and Exhibits. The Annexes and the Exhibits to
this Indenture are hereby incorporated herein and made a part hereof and are an
integral part of this Indenture.

            Section 12.13 Calculations. Except as otherwise provided in this
Agreement, including, without limitation, with respect to the calculation of
interest on the Class A Notes, the Class B1 Notes and the VFN Notes all interest
rate calculations under this Agreement, including those with respect to the
Contracts, will be made on the basis of a 360-day year and twelve 30-day months
and will be carried out to at least seven decimal places.

            Section 12.14 No Proceedings. The Servicer, the Originator, the
Issuers and the Indenture Trustee each hereby agrees that it will not directly
or indirectly institute, or cause to be instituted, against either of the
Issuers any bankruptcy or insolvency proceeding so long as there shall not have
elapsed one year plus one day since the maturity date of the latest maturing
securities of either of the Issuers.

                                      -69-
<PAGE>   75
            IN WITNESS WHEREOF, the Issuers, the Servicer, the Originators and
the Indenture Trustee have caused this Indenture to be duly executed by their
respective officers, all as of the day and year first above written.

                              HPSC EQUIPMENT RECEIVABLES 2000-1 LLC I, as
                                 Issuer

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

                              HPSC EQUIPMENT RECEIVABLES 2000-1 LLC II, as
                                 Issuer

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

                              HPSC, INC.,
                                 as Servicer

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

                              HPSC, INC.,
                                 as Originator

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

                              AMERICAN COMMERCIAL FINANCE CORPORATION,
                                 as Originator
                              By:
                                 ---------------------------------------
                                 Name:
                                 Title:

                              BNY MIDWEST TRUST COMPANY, not in its
                                 individual capacity but solely as
                                 Indenture Trustee

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

                          [Signature Page to Indenture]

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