Document:

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                                                                  Exhibit 10.2.2

                                TRUST INDENTURE

                                    Between

           BUSINESS FINANCE AUTHORITY OF THE STATE OF NEW HAMPSHIRE

                                      And

                         THE HUNTINGTON NATIONAL BANK,
                                  as Trustee

                                   Securing:

                                  $3,500,000

           BUSINESS FINANCE AUTHORITY OF THE STATE OF NEW HAMPSHIRE
                       ADJUSTABLE RATE DEMAND INDUSTRIAL
                    DEVELOPMENT REVENUE BONDS, SERIES 1999
             (APEX TELECOMMUNICATIONS MANUFACTURING, INC. PROJECT)

                                  Dated as of
                               September 1, 1999
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                                     INDEX
                  (This Index is not a part of the Indenture
               but rather is for convenience of reference only)

<TABLE>
<CAPTION>
                                                                                             Page
                                                                                             ----
<S>                                                                                          <C>
ARTICLE I   DEFINITIONS...................................................................     3
         SECTION 1.01.  Definitions.......................................................     3
         SECTION 1.02   Interpretation....................................................    13
         SECTION 1.03.  Captions and Headings.............................................    13
ARTICLE II   AUTHORIZATION AND TERMS OF SERIES 1999 BONDS; ADDITIONAL BONDS...............    14
         SECTION 2.01.  Authorized Amount of Bonds; Limited Obligations...................    14
         SECTION 2.02.  Issuance of Series 1999 Bonds.....................................    14
         SECTION 2.03.  Maturity and Interest.............................................    14
         SECTION 2.04.  Delivery of the Series 1999 Bonds.................................    16
         SECTION 2.05.  Bondholders' Tender Options.......................................    16
         SECTION 2.06.  Mandatory Tender..................................................    18
         SECTION 2.07.  Issuance and Delivery of Additional Bonds.........................    19
ARTICLE III   TERMS OF BONDS GENERALLY....................................................    22
         SECTION 3.01.  Form of Bonds.....................................................    22
         SECTION 3.02.  Variable Terms....................................................    22
         SECTION 3.03.  Execution and Authentication of Bonds.............................    22
         SECTION 3.04.  Source of Payment of Bonds........................................    23
         SECTION 3.05.  Payment and Ownership of Bonds....................................    23
         SECTION 3.06.  Transfer and Exchange of Bonds....................................    24
         SECTION 3.07.  Mutilated, Lost, Wrongfully Taken or Destroyed Bonds..............    25
         SECTION 3.08.  Cancellation of Bonds.............................................    26
         SECTION 3.09.  Payments Due on Legal Holidays....................................    26
         SECTION 3.10.  Book Entry........................................................    26
         SECTION 3.11.  Delivery of Series 1999 Bond Certificates.........................    27
ARTICLE IV   REDEMPTION OF SERIES 1999 BONDS..............................................    29
         SECTION 4.01.  Terms of Redemption of Series 1999 Bonds..........................    29
         SECTION 4.02   Partial Redemption................................................    30
         SECTION 4.03.  Issuer's Election to Redeem.......................................    31
         SECTION 4.04.  Notice of Redemption..............................................    31
         SECTION 4.05.  Payment of Redeemed Bonds.........................................    32
         SECTION 4.06.  Variation of Redemption Provisions................................    33
ARTICLE V   PROVISIONS AS TO FUNDS, PAYMENTS, PROJECT AND AGREEMENT.......................    34
         SECTION 5.01.  Creation of Project Fund..........................................    34
         SECTION 5.02.  Disbursements from and Records of Project Fund....................    34
         SECTION 5.03.  Completion of the Project.........................................    34
         SECTION 5.04.  Creation of Bond Fund; Letter of Credit...........................    35
         SECTION 5.05.  Investment of Bond Fund, Project Fund and Rebate Fund.............    37
         SECTION 5.06.  Moneys to be Held in Trust........................................    38
         SECTION 5.07.  Nonpresentment of Bonds...........................................    38
</TABLE>

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<TABLE>
<S>                                                                                                     <C>
     SECTION 5.08.  Repayment to the Borrower or the Letter of Credit Bank from
                    the Bond Fund....................................................................   38
     SECTION 5.09.  Extension of Letter of Credit; Alternate Letter of Credit........................   39
ARTICLE VI   THE TRUSTEE, REGISTRAR, PAYING AGENTS, AUTHENTICATING AGENTS AND REMARKETING AGENT......   40
     SECTION 6.01.  Trustee's Acceptance and Responsibilities........................................   40
     SECTION 6.02.  Certain Rights and Obligations of the Trustee....................................   41
     SECTION 6.03.  Fees, Charges and Expenses of Trustee, Registrar, Paying Agents and
                    Authenticating Agents............................................................   44
     SECTION 6.04.  Intervention by Trustee..........................................................   44
     SECTION 6.05.  Successor Trustee................................................................   44
     SECTION 6.06.  Appointment of Co-Trustee........................................................   45
     SECTION 6.07.  Resignation by the Trustee.......................................................   45
     SECTION 6.08.  Removal of the Trustee...........................................................   46
     SECTION 6.09.  Appointment of Successor Trustee.................................................   46
     SECTION 6.10.  Adoption of Authentication.......................................................   47
     SECTION 6.11.  Registrars.......................................................................   48
     SECTION 6.12.  Designation and Succession of Paying Agents......................................   49
     SECTION 6.13.  Designation and Succession of Authenticating Agents..............................   49
     SECTION 6.14.  Dealing in Bonds.................................................................   50
     SECTION 6.15.  Representations, Agreements and Covenants of Trustee.............................   50
     SECTION 6.16.  Concerning the Remarketing Agent.................................................   51
     SECTION 6.17.  Qualifications of Remarketing Agent..............................................   51
     SECTION 6.18.  Remarketing of Series 1999 Bonds.................................................   52
     SECTION 6.19   Delivery of Purchased Series 1999 Bonds..........................................   53
ARTICLE VII   DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND HOLDERS.................................   54
     SECTION 7.01.  Defaults; Events of Default......................................................   54
     SECTION 7.02.  Notice of Default................................................................   55
     SECTION 7.03.  Acceleration.....................................................................   55
     SECTION 7.04.  Other Remedies; Rights of Holders................................................   56
     SECTION 7.05.  Right of Holders to Direct Proceedings...........................................   56
     SECTION 7.06.  Application of Moneys............................................................   57
     SECTION 7.07.  Remedies Vested in Trustee.......................................................   58
     SECTION 7.08.  Rights and Remedies of Holders...................................................   58
     SECTION 7.09.  Termination of Proceedings.......................................................   59
     SECTION 7.10.  Waivers of Events of Default.....................................................   59
     SECTION 7.11.  Certain Expenses as Expenses of Administration...................................   60
ARTICLE VIII   SUPPLEMENTAL INDENTURES...............................................................   61
     SECTION 8.01.  Supplemental Indentures Generally................................................   61
     SECTION 8.02.  Supplemental Indentures Not Requiring Consent of Holders.........................   61
     SECTION 8.03.  Supplemental Indentures Requiring Consent of Holders.............................   62
     SECTION 8.04.  Consent of Borrower..............................................................   64
     SECTION 8.05.  Authorization to Trustee; Effect of Supplement...................................   64
     SECTION 8.06.  Opinion of Counsel...............................................................   65
     SECTION 8.07.  Modification by Unanimous Consent................................................   65
</TABLE>

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<TABLE>
<S>                                                                                                      <C>
ARTICLE IX   DEFEASANCE...............................................................................    66
     SECTION 9.01.   Release of Indenture.............................................................    66
     SECTION 9.02.   Payment and Discharge of Bonds...................................................    66
     SECTION 9.03.   Survival of Certain Provisions...................................................    67
ARTICLE X   COVENANTS AND AGREEMENTS OF THE ISSUER....................................................    68
     SECTION 10.01.  Covenants and Agreements of the Issuer...........................................    68
     SECTION 10.02.  Observance and Performance of Covenants, Agreements, Authority and Actions.......    70
ARTICLE XI   AMENDMENTS TO THE AGREEMENT AND THE LETTER OF CREDIT.....................................    71
     SECTION 11.01.  Amendments Not Requiring Consent of Holders......................................    71
     SECTION 11.02.  Amendments Requiring Consent of Holders..........................................    71
ARTICLE XII   MEETINGS OF HOLDERS.....................................................................    72
     SECTION 12.01.  Purposes of Meetings.............................................................    72
     SECTION 12.02.  Call of Meetings.................................................................    72
     SECTION 12.03.  Voting...........................................................................    72
     SECTION 12.04.  Meetings.........................................................................    73
     SECTION 12.05.  Miscellaneous....................................................................    73
ARTICLE XIII   MISCELLANEOUS..........................................................................    74
     SECTION 13.01.  Limitation of Rights.............................................................    74
     SECTION 13.02.  Severability.....................................................................    74
     SECTION 13.03.  Notices..........................................................................    74
     SECTION 13.04.  Suspension of Mail...............................................................    75
     SECTION 13.05.  Reserved.........................................................................    75
     SECTION 13.06.  Instruments of Holders...........................................................    75
     SECTION 13.07.  Priority of this Indenture.......................................................    76
     SECTION 13.08.  Extent of Covenants; No Personal Liability.......................................    76
     SECTION 13.09.  Binding Effect...................................................................    76
     SECTION 13.10.  Counterparts.....................................................................    76
     SECTION 13.11.  Governing Law....................................................................    76

Exhibit A - The Project................................................................................  A-1
Exhibit B - Project Site...............................................................................  B-1
Exhibit C - Bond Form..................................................................................  C-1
</TABLE>

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<PAGE>

                                TRUST INDENTURE

          THIS TRUST INDENTURE (the "Indenture") dated as of September 1, 1999
by and between the BUSINESS FINANCE AUTHORITY OF THE STATE OF NEW HAMPSHIRE, a
body corporate and politic as an agency of the State of New Hampshire (the
"Issuer"), and THE HUNTINGTON NATIONAL BANK, a national banking association, as
Trustee under the circumstances summarized in the following recitals (the
capitalized terms not defined in the recitals and granting clauses being used
therein as defined in Article I hereof):

          WHEREAS, by virtue of the authority of the Constitution and laws of
the State of New Hampshire and specifically RSA 162-I (the Act") and pursuant to
the Bond Legislation (as defined herein), the Issuer is empowered to issue its
bonds to finance the cost of the acquisition, construction, installation and
equipping of any facility constituting a "project" under the Act; and

          WHEREAS, the Project, as defined herein, will be of the character and
will accomplish the purposes of the Act, and will create additional employment
opportunities in Nashua, New Hampshire; and

          WHEREAS, the Issuer proposes to issue its Adjustable Rate Demand
Industrial Development Revenue Bonds, Series 1999 (Apex Telecommunications
Manufacturing, Inc. Project) (the "Series 1999 Bonds"), in the aggregate
principal amount of $3,500,000 for the purpose of financing the acquisition,
construction, renovation, installation and equipping of the Project, as herein
defined; and

          WHEREAS, all things necessary to make the Bonds when issued as
provided in this Indenture, valid, binding and legal obligations of the Issuer
according to the import thereof, have been done and performed, and the creation,
execution and delivery of this Indenture, and the execution and issuance of the
Bonds, subject to the terms hereof, have in all respects been duly authorized;

          NOW, THEREFORE, THIS INDENTURE WITNESSETH, that to secure the payment
of Bond Service Charges on the Bonds according to their true intent and meaning,
to secure the performance and observance of all of the covenants, agreements,
obligations and conditions contained therein and herein, and to declare the
terms and conditions upon and subject to which the Bonds are and are intended to
be issued, held, secured and enforced, and in consideration of the premises and
the acceptance by the Trustee of the trusts created herein and of the purchase
and acceptance of the Bonds by the Holders, and for other good and valuable
consideration, the receipt of which is acknowledged, the Issuer has executed and
delivered this Indenture and absolutely assigns hereby to the Trustee, and to
its successors in trust, and its and their assigns, all right, title and
interest of the Issuer in and to (i) the Revenues, including, without
limitation, all Loan Payments and other amounts receivable by or on behalf of
the Issuer under the Agreement in respect of repayment of the Loan, and (ii) the
Agreement, except for the Unassigned Issuer's Rights.
<PAGE>

          TO HAVE AND TO HOLD unto the Trustee and its successors in that trust
and its and their assigns forever;

          BUT IN TRUST, NEVERTHELESS, and subject to the provisions hereof,

          (a)  except as provided otherwise herein, for the equal and
     proportionate benefit, security and protection of all present and future
     Holders of the Bonds issued or to be issued under and secured by this
     Indenture,

          (b)  for the enforcement of the payment of the principal of and
     interest and any premium on the Bonds, when payable, according to the true
     intent and meaning thereof and of this Indenture, and

          (c)  to secure the performance and observance of and compliance with
      the covenants, agreements, obligations, terms and conditions of this
      Indenture,

in each case, without preference, priority or distinction, as to lien or
otherwise, of any one Bond over any other by reason of designation, number, date
of the Bonds or of authorization, issuance, sale, execution, authentication,
delivery or maturity thereof, or otherwise, so that each Bond and all Bonds
shall have the same right, lien and privilege under this Indenture and shall be
secured equally and ratably hereby, it being intended that the lien and security
of this Indenture shall take effect from the date hereof, without regard to the
date of the actual issue, sale or disposition of the Bonds, as though upon that
date all of the Bonds were actually issued, sold and delivered to purchasers for
value; provided, however, that moneys drawn under the Letter of Credit shall be
applied only to the payment of the purchase price of or the principal of, and
interest on, the Series 1999 Bonds; and provided further, however, that

          (i)  if the principal of the Bonds and the interest due or to
     become due thereon together with any premium required by redemption of any
     of the Bonds prior to maturity shall be paid, at the times and in the
     manner provided in the Bonds, or the outstanding Bonds shall have been paid
     and discharged in accordance with Article IX hereof, and

          (ii) if all of the covenants, agreements, obligations, terms and
     conditions of the Issuer under this Indenture shall have been kept,
     performed and observed and there shall have been paid to the Trustee, the
     Letter of Credit Bank, the Registrar, the Paying Agents, the Remarketing
     Agent and the Authenticating Agents all sums of money due or to become due
     to them in accordance with the terms and provisions hereof,

this Indenture and the rights assigned hereby shall cease, determine and be
void, except as provided in Section 9.03 hereof with respect to the survival of
certain provisions hereof; otherwise, this Indenture shall be and remain in full
force and effect.

          It is declared that all Bonds issued hereunder and secured hereby are
to be issued, authenticated and delivered, and that all Revenues assigned hereby
are to be dealt with and disposed of as provided in this Indenture. The Issuer
agrees and covenants with the Trustee and with each and all Holders, as follows:

                                       2
<PAGE>

                                   ARTICLE I

                                  DEFINITIONS

          SECTION 1.01.  Definitions.  In addition to the words and terms
                         -----------
defined elsewhere in this Indenture, the words and terms defined in this Section
shall have the meanings herein specified unless the context or use clearly
indicates another or different meaning or intent. Those words and terms not
expressly defined herein and used herein with initial capitalization where rules
of grammar do not otherwise require capitalization, or which are otherwise
defined terms under the Agreement, as hereinafter defined, shall have the
meanings assigned to them in the Agreement.

          "Act" means RSA 162-I.

          "Additional Bonds" means bonds which may be issued under Section 2.07
of this Indenture.

          "Additional Notes" means any non-negotiable promissory note or notes,
in addition to the Project Note, delivered by the Borrower to the Trustee in
connection with the issuance of Additional Bonds, as provided in the Agreement.

          "Agreement" means the Loan Agreement dated as of even date with this
Indenture, between the Issuer and Apex Telecommunications Manufacturing, Inc.,
and their respective successors and assigns, as amended or supplemented from
time to time.

          "Alternate Letter of Credit" means an irrevocable letter or letters of
credit issued by a savings and loan association or bank organized and doing
business in the United States of America and acceptable to the Remarketing Agent
whose long-term unsecured debt is rated no lower than "A" by S&P or Moody's
Investors Service, which Alternate Letter of Credit requires such savings and
loan association or bank to pay when due, to and upon request of the Trustee,
the same amounts payable under the initial Letter of Credit.

          "Authenticating Agent" means, with respect to any series of Bonds, the
Trustee and the Registrar for such series of Bonds and any bank, trust company
or other Person designated as an Authenticating Agent for such series of Bonds
by or in accordance with Section 6.13 of this Indenture, each of which shall be
transfer agent, registered in accordance with Section 17(A) of the Securities
Exchange Act of 1934 as amended.

          "Authorized Borrower Representative" means the person designated at
the time pursuant to the Agreement to act on behalf of the Borrower.

          "Beneficial Owner" means, while the Series 1999 Bonds are held in
book-entry form, the beneficial ownership interests of each actual purchaser of
each Series 1999 Bond.

          "Bond Counsel" means Peck, Shaffer & Williams LLP or an attorney-at-
law (other than an employee of the Borrower) satisfactory to the Trustee and the
Issuer and nationally recognized as experienced in matters relating to the
exclusion from gross income for federal income tax purposes of interest on bonds
of states and political subdivisions.

                                       3
<PAGE>

          "Bond Documents" means the Agreement, this Indenture, the Bonds, the
Letter of Credit, the Letter of Credit Agreement, the Project Note, the Tax
Regulatory Agreement and the Bond Placement Agreement.

          "Bond Fund" means the Bond Fund created in Section 5.04 hereof.

          "Bond Legislation" means (a) when used with reference to the Series
1999 Bonds, the resolution providing for their issuance and approving the
Agreement, this Indenture, the Bond Placement Agreement and related matters; (b)
when used with reference to an issue of Additional Bonds, the resolution
providing for the issuance of the Series 1999 Bonds, to the extent applicable,
and the resolution providing for the issuance of the Additional Bonds and
approving any amendment or supplement to the Agreement, any supplemental
indenture and related matters; and (c) when used with reference to Bonds when
Additional Bonds are outstanding, the resolution providing for the issuance of
the Series 1999 Bonds and the resolution providing for the issuance of the then
outstanding and the then to be issued Additional Bonds; in each case as amended
or supplemented from time to time.

          "Bond Purchase Date" means the Bond Purchase Date as defined in
Sections 2.05 and 2.06 hereof.

          "Bond Service Charges" means, for any period or payable at any time,
the principal of, premium, if any, and interest on the Bonds for that period or
payable at that time whether due at maturity or upon acceleration or redemption.

          "Bonds" means the Series 1999 Bonds and any Additional Bonds.

          "Borrower" means Apex Telecommunications Manufacturing, Inc., a New
Hampshire corporation.

          "Business Day" means a day of the year, other than (a) a Saturday; (b)
a Sunday; (c) a day on which commercial banks located in any city in which the
principal corporate trust office of the Trustee or the principal office of the
Letter of Credit Bank is located are required or authorized by law to remain
closed; or (d) a day on which the New York Stock Exchange is closed.

          "Code" means the Internal Revenue Code of 1986, as amended from time
to time. References to the Code and Sections of the Code include relevant
applicable regulations and proposed regulations thereunder and any successor
provisions to those Sections, regulations or proposed regulations.

          "Date of Taxability" means the date as of which all or any part of the
interest on any of the Series 1999 Bonds is first required to be included for
Federal income tax purposes in the gross income of a Holder thereof by reason of
the occurrence of any circumstances on the basis of which a Determination of
Taxability shall have been made.

          "Determination of Taxability" means the receipt by the Trustee of a
ruling or technical advice by the Internal Revenue Service in which the Borrower
has participated or a written opinion by an attorney or firm of attorneys of
recognized standing on the subject of

                                       4
<PAGE>

municipal bonds selected by the Trustee or a Holder and approved by the
Borrower, which approval shall not be unreasonably withheld, to the effect that
interest on any of the Series 1999 Bonds is included in the gross income for
Federal income tax purposes of a Holder (other than a Holder who is a
"substantial user" of the Project or a "related person").

          "DTC" means The Depository Trust Company, a limited purpose trust
company organized under the laws of the State of New York, and its successors
and assigns.

          "DTC Participant" means banks, brokers or dealers who are participants
of DTC.

          "Eligible Funds" (i) means amounts on deposit in the Bond Fund (other
than funds derived from a draw on the Letter of Credit) for a period of 91 days
during which there shall not have occurred the filing of a voluntary or
involuntary petition in bankruptcy under the United States Bankruptcy Code, or
the commencement of a proceeding under any other applicable laws concerning
insolvency, reorganization or bankruptcy, by or against the Borrower or the
Issuer or (ii) any other funds that, in the opinion of bankruptcy counsel
acceptable to the Trustee and the Letter of Credit Bank, are not subject to
avoidance under insolvency or bankruptcy laws.

          "Eligible Investments" means (i) obligations of, or guaranteed as to
principal and interest by, the United States or any agency or instrumentality
thereof when such obligations are backed by the full faith and credit of the
United States; (ii) Federal National Mortgage Association's (FNMA) mortgage
backed securities and senior debt obligations which bear interest at a fixed
rate and are fully amortizing; (iii) Federal funds, certificates of deposit,
time deposits and bankers' acceptances (having original maturities of not more
than 365 days) of any bank the unsecured, uninsured and unguaranteed debt
obligations of which (or, in the case of the principal bank in a bank holding
company, such debt obligations of the bank holding company) have been rated "AA"
or "A-1+" by S&P, or any other comparable rating established by S&P; (iv)
commercial paper (having original maturities of not more than 365 days) rated
"A-1+" by S&P; (v) money market funds, including those of the Trustee, investing
in or secured solely by obligations described in (i) above; (vi) deposits which
are fully insured by the Federal Savings Association Insurance Fund (SAIF) or
the Bank Insurance Fund (BIF); (vii) repurchase agreements with any institution
rated AAA by S&P; (viii) obligations of any state of the United States of
America or any political subdivision or other instrumentality of any such state,
which are rated at least "A" or its equivalent by S&P; and (ix) money market or
mutual funds investing solely in obligations described in (viii) above.

          "Event of Default" means an Event of Default hereunder.

          "Executive" means the Chairman, Vice Chairman or Executive Director of
the Issuer.

          "Extraordinary Services" and "Extraordinary Expenses" mean all
services rendered and all reasonable expenses properly incurred by the Trustee
under this Indenture, other than Ordinary Services and Ordinary Expenses.
Services rendered and expenses incurred by the Trustee which are directly
related to an Event of Default shall be considered Extraordinary Services and
Extraordinary Expenses.

                                       5
<PAGE>

          "Fiscal Officer" means the Treasurer of the Issuer.

          "Five Year Interest Rate" means (a) the rate of interest per annum
determined by the Remarketing Agent, on the Interest Rate Determination Date
immediately preceding the applicable Interest Rate Adjustment Date, to be the
interest rate necessary during the Interest Rate Period of five years commencing
on the applicable Interest Rate Adjustment Date in the judgment of the
Remarketing Agent (taking into consideration current transactions and comparable
securities in which the Remarketing Agent is involved or of which it is aware
and prevailing financial market conditions) to produce a par bid for the Series
1999 Bonds on the Interest Rate Determination Date or (b) in the event that the
Remarketing Agent has been removed or has resigned and no successor has been
appointed or the Remarketing Agent has failed to determine the Five Year
Interest Rate for whatever reason, or the Five Year Interest Rate cannot be
determined pursuant to clause (a) for whatever reason, the interest rate then in
effect with respect to the Series 1999 Bonds, without adjustment; provided that
in no event shall the Five Year Interest Rate exceed 12% per annum.

          "Fixed Interest Rate" means the fixed rate of interest per annum
determined by the Remarketing Agent, on the Interest Rate Determination Date
immediately preceding the applicable Interest Period Reset Date, to be the
interest rate necessary in the judgment of the Remarketing Agent (taking into
consideration current transactions in which the Remarketing Agent is involved or
of which it is aware and prevailing financial market conditions) to produce a
par bid for the Series 1999 Bonds on the Interest Rate Determination Date;
provided that in no event shall the Fixed Interest Rate exceed 12% per annum.

          "Fixed Interest Rate Commencement Date" means the Interest Payment
Date from and after which the Series 1999 Bonds shall bear interest at the Fixed
Interest Rate, as that date shall be established as provided in Section 2.03
hereof.

          "Government Obligations" means obligations of, or guaranteed as to
principal and interest by, the United States or any agency or instrumentality
thereof when such obligations are backed by the full faith and credit of the
United States.

          "Holder" or "Holder of a Bond" or "Bondholder" means the Person in
whose name a Bond is registered on the Register.

          "Indenture" means this Trust Indenture, as amended or supplemented
from time to time.

          "Interest Payment Date" means, as to the Series 1999 Bonds, each date
set forth as such in the form of Series 1999 Bond contained in this Indenture,
commencing November 1, 1999, and as to Additional Bonds, each date designated as
an Interest Payment Date in the form of Bond for which provision is made in the
applicable Supplemental Indenture or Bond Legislation.

          "Interest Period" means, initially, the period from and including the
date of initial delivery of the Series 1999 Bonds to and including October 6,
1999, and thereafter each period from and including the most recent Interest
Payment Date to and including the day next preceding the next succeeding
Interest Payment Date.

                                       6
<PAGE>

          "Interest Period Reset Date" means the Interest Rate Adjustment Date
on which the interest rate on the Series 1999 Bonds converts from the Interest
Rate Mode applicable to the Series 1999 Bonds prior to such date to a new
Interest Rate Mode. An Interest Period Reset Date shall be the first day of a
month unless the interest rate on the Series 1999 Bonds is converting to the
Weekly Interest Rate, in which case the Interest Period Reset Date shall be the
first Thursday of the month.

          "Interest Rate Adjustment Date" means any date on which the interest
rate on the Series 1999 Bonds is adjusted, either as the result of the
conversion of the interest rate on the Series 1999 Bonds to a different Interest
Rate Mode, or by adjustment of the interest rate on the Series 1999 Bonds within
the applicable Interest Rate Mode. An Interest Rate Adjustment Date shall be the
first day of a month unless the Series 1999 Bonds bear interest at the Weekly
Interest Rate, in which case the Interest Rate Adjustment Date shall be Thursday
of each week.

          "Interest Rate Determination Date" means (i) with respect to the Three
Month Interest Rate, the Six Month Interest Rate, the One Year Interest Rate,
the Five Year Interest Rate, the Seven Year Interest Rate and the Fixed Interest
Rate, the twelfth Business Day preceding an Interest Rate Adjustment Date, and
(ii) with respect to the Weekly Interest Rate, not later than 11:00 a.m.
according to local time at the principal corporate trust office of the Trustee
on Wednesday of each week, or the next preceding Business Day if such Wednesday
is not a Business Day.

          "Interest Rate for Advances" means, for the first thirty (30) days
such rate shall be applicable, a rate per annum equal to the Prime Rate, and
thereafter, a rate per annum which is equal to two percent (2%) plus the Prime
Rate.

          "Interest Rate Mode" means any of those modes of interest with respect
to the Series 1999 Bonds permitted by this Indenture, specifically, the Weekly
Interest Rate, the Three Month Interest Rate, the Six Month Interest Rate, the
One Year Interest Rate, the Five Year Interest Rate, the Seven Year Interest
Rate and the Fixed Interest Rate.

          "Interest Rate Period" means that period of time during which the
interest rate with respect to the Series 1999 Bonds has been determined by the
Remarketing Agent, commencing on the applicable Interest Rate Adjustment Date,
and terminating on the day immediately preceding the following Interest Rate
Adjustment Date.

          "Issuer" means the Business Finance Authority of the State of New
Hampshire, a body corporate and politic as an agency of the State of New
Hampshire.

          "Issuing Authority" means the Board of Directors of the Issuer.

          "Letter of Credit" means (A) the irrevocable letter of credit
designated herein as "Series 1999 Letter of Credit", to be issued by the Letter
of Credit Bank and delivered to the Trustee on the same date as the delivery of
the Series 1999 Bonds to the Original Purchaser thereof, and is an irrevocable
obligation to make payment to the Trustee of up to the amount therein specified
with respect to (a) the principal amount of the outstanding Series 1999 Bonds to
enable the Trustee to pay (i) the principal amount of the Series 1999 Bonds when
due at maturity or upon redemption or acceleration on the occurrence of an Event
of Default, and (ii) an amount

                                       7
<PAGE>

equal to the purchase price of any Series 1999 Bonds tendered for purchase by
the holders thereof, plus (b) the amount of interest due on the Series 1999
Bonds, but not to exceed 56 days' maximum accrued interest to enable the Trustee
to pay interest on the Series 1999 Bonds, as the same may be transferred,
reissued, extended or replaced in accordance with this Indenture and the Letter
of Credit, and (B) upon the issuance and effectiveness thereof, any Alternate
Letter of Credit.

          "Letter of Credit Agreement" means the Reimbursement Agreement, dated
as of even date with this Indenture between the Letter of Credit Bank and the
Borrower, as amended or supplemented from time to time.

          "Letter of Credit Bank" means The Huntington National Bank, a national
banking association organized and existing under the laws of the United States
of America, with its principal office in Columbus, Ohio, and its successors and
assigns. Upon issuance and effectiveness of any Alternate Letter of Credit,
"Letter of Credit Bank" shall mean the issuer thereof and its successors and
assigns.

          "Letter of Credit Termination Date" means the expiration dates of the
Letter of Credit or any Alternate Letter of Credit.

          "Letter of Representations" means the Letters of Representations dated
on or before the date of initial delivery of the Series 1999 Bonds, from the
Issuer and the Trustee to DTC with respect to the Series 1999 Bonds, or to tax-
exempt bonds in general, which shall be the binding obligation of the Issuer and
the Trustee.

          "Loan" means the loan by the Issuer to the Borrower of the proceeds
received from the sale of the Bonds.

          "Loan Payments" means the amounts required to be paid by the Borrower
in repayment of the Loan pursuant to the provisions of the Notes and Section 4.1
of the Agreement.

          "Notes" means the Project Note and any Additional Notes.

          "One Year Interest Rate" means (a) the rate of interest per annum
determined by the Remarketing Agent, on the Interest Rate Determination Date
immediately preceding the applicable Interest Rate Adjustment Date, to be the
interest rate necessary during the Interest Rate Period of one year commencing
on the applicable Interest Rate Adjustment Date in the judgment of the
Remarketing Agent (taking into consideration current transactions and comparable
securities in which the Remarketing Agent is involved or of which it is aware
and prevailing financial market conditions) to produce a par bid for the Series
1999 Bonds on the Interest Rate Determination Date or (b) in the event that the
Remarketing Agent has been removed or has resigned and no successor has been
appointed, or the Remarketing Agent has failed to determine the One Year
Interest Rate for whatever reason, or the One Year Interest Rate cannot be
determined pursuant to clause (a) for whatever reason, the interest rate then in
effect with respect to the Series 1999 Bonds, without adjustment; provided that
in no event shall the One Year Interest Rate exceed 12% per annum.

                                       8
<PAGE>

          "Ordinary Services" and "Ordinary Expenses" means those services
normally rendered, and those expenses normally incurred, by a trustee under
instruments similar to this Indenture.

          "Original Purchaser" means, as to the Series 1999 Bonds, the Person or
Persons who are the Beneficial Owners at the time the Series 1999 Bonds are
initially issued and delivered and, as to Additional Bonds, the Person or
Persons who are the Beneficial Owners at the time such Additional Bonds are
initially issued and delivered.

          "Outstanding Bonds", "Bond outstanding" or "Bonds outstanding" mean,
as of the applicable date, all Bonds which have been authenticated and
delivered, or which are being delivered by the Trustee under this Indenture,
except:

          (a)  Bonds cancelled upon surrender, exchange or transfer, or
cancelled because of payment or redemption on or prior to that date;

          (b)  Bonds, or the portion thereof, for the payment, redemption or
purchase for cancellation of which sufficient money has been deposited and
credited with the Trustee or any Paying Agents pursuant to this Indenture on or
prior to that date for that purpose (whether upon or prior to the maturity or
redemption date of those Bonds); provided, that if any of those Bonds are to be
redeemed prior to their maturity, notice of that redemption shall have been
given or arrangements satisfactory to the Trustee shall have been made for
giving notice of that redemption, or waiver by the affected Holders of that
notice satisfactory in form to the Trustee shall have been filed with the
Trustee;

          (c)  Bonds, or the portion thereof, which are deemed to have been
paid and discharged or caused to have been paid and discharged pursuant to the
provisions of this Indenture; and

          (d)  Bonds in lieu of which others have been authenticated under
Section 3.07 of this Indenture;

provided that, for purposes of voting or giving any consent, any Bond owned by
the Borrower or pledged to the Letter of Credit Bank shall not be deemed to be
outstanding hereunder.

          "Paying Agent" means any bank or trust company designated as a Paying
Agent by or in accordance with Section 6.12 of this Indenture.

          "Person" or words importing persons mean firms, associations,
partnerships (including without limitation, general and limited partnerships),
joint ventures, societies, estates, trusts, corporations, limited liability
companies, public or governmental bodies, other legal entities and natural
persons.

          "Placement Agent" means The Huntington National Bank.

          "Placement Agreement" means, as to the Series 1999 Bonds, the Bond
Placement Agreement dated as of or after the date of the Bond Legislation for
the Series 1999 Bonds but no later than the date of initial delivery of the
Series 1999 Bonds, among the Issuer, the Placement Agent, the Letter of Credit
Bank and the Borrower, and as to any Additional Bonds, the Bond

                                       9
<PAGE>

Placement Agreement as defined in the Bond Legislation or supplemental indenture
providing for the issuance of the Additional Bonds.

          "Plans and Specifications" means Plans and Specifications as defined
in the Agreement.

          "Predecessor Bond" of any particular Bond means every previous Bond
evidencing all or a portion of the same debt as that evidenced by the particular
Bond. For the purposes of this definition, any Bond authenticated and delivered
under Section 3.07 of this Indenture in lieu of a lost, stolen or destroyed Bond
shall, except as otherwise provided in Section 3.07, be deemed to evidence the
same debt as the lost, stolen or destroyed Bond.

          "Prime Rate" means the interest rate per annum established by The
Huntington National Bank from time to time as such bank's prime commercial rate
based on its consideration of economic, money market, business and competitive
factors, and is not necessarily such bank's most favored rate. Subject to any
minimum or maximum rate limitations specified by applicable law, the Prime Rate
will automatically and immediately change from time to time effective as of the
effective date of each such change in the prime commercial rate of such bank.

          "Project" means the real, personal or real and personal property,
including undivided interests or other interests therein, identified in Exhibit
A attached hereto as a part hereof, or acquired, constructed or installed as a
replacement or substitution therefor or an addition thereto, or as may result
from any revision thereof in accordance with the provisions of the Agreement.

          "Project Facilities" means the Project and the Project Site.

          "Project Fund" means the Project Fund created in Section 5.01 hereof.

          "Project Note" or "Project Notes" means the promissory notes of the
Borrower, designated "Series 1999 Promissory Note" dated as of even date of the
initial issuance and delivery of the Series 1999 Bonds, in the form attached to
the Agreement as Exhibit C and in the principal amount of $3,500,000, evidencing
the obligations of the Borrower to make Loan Payments.

          "Project Site" means the real estate and interests in real estate
constituting the site of the Project, as described in Exhibit B attached hereto
as a part hereof.

          "Rebate Fund" means the Rebate Fund created in the Tax Regulatory
Agreement.

          "Register" means the books kept and maintained by the Registrar for
registration and transfer of Series 1999 Bonds pursuant to Section 3.06 hereof.

          "Registrar" means, as to the Series 1999 Bonds, The Huntington
National Bank, until a successor Registrar shall have become such pursuant to
applicable provisions of this Indenture; each Registrar shall be a transfer
agent registered in accordance with Section 17(A)(c) of the Securities Exchange
Act of 1934.

                                      10
<PAGE>

          "Regular Record Date" means, with respect to any Series 1999 Bond, the
Business Day immediately preceding an Interest Payment Date applicable to that
Series 1999 Bond.

          "Remarketing Agent" means, initially, Huntington Capital Corp., and
any Person meeting the qualifications of Section 6.17 hereof and designated from
time to time to act as Remarketing Agent under Section 6.17 hereof.

          "Revenues" means any receipts received by the Issuer in connection
with the Agreement, including (a) the Loan Payments, (b) all moneys and
investments in the Bond Fund, including without limitation moneys received by
the Trustee under or pursuant to the Letter of Credit, (c) any moneys and
investments in the Project Fund, and (d) all income and profit from the
investment of the foregoing moneys.

          "S&P" means Standard & Poor's Ratings Group, a division of The McGraw-
Hill Companies, Inc., a corporation organized and existing under the laws of the
State of New York, and its successors and assigns.

          "Series 1999 Bonds" means the $3,500,000 Adjustable Rate Demand
Industrial Development Revenue Bonds, Series 1999 (Apex Telecommunications
Manufacturing, Inc. Project) of the Issuer authorized in the Bond Legislation
and Section 2.02 hereof.

          "Seven Year Interest Rate" means (a) the rate of interest per annum
determined by the Remarketing Agent, on the Interest Rate Determination Date
immediately preceding the applicable Interest Rate Adjustment Date, to be the
interest rate necessary during the Interest Rate Period of seven years
commencing on the applicable Interest Rate Adjustment Date in the judgment of
the Remarketing Agent (taking into consideration current transactions and
comparable securities in which the Remarketing Agent is involved or of which it
is aware and prevailing financial market conditions) to produce a par bid for
the Series 1999 Bonds on the Interest Rate Determination Date or (b) in the
event that the Remarketing Agent has been removed or has resigned and no
successor has been appointed or the Remarketing Agent has failed to determine
the Seven Year Interest Rate for whatever reason, or the Seven Year Interest
Rate cannot be determined pursuant to clause (a) for whatever reason, the
interest rate then in effect with respect to the Series 1999 Bonds, without
adjustment; provided that in no event shall the Seven Year Interest Rate exceed
12% per annum.

          "Six Month Interest Rate" means (a) the rate of interest per annum
determined by the Remarketing Agent, on the Interest Rate Determination Date
immediately preceding the applicable Interest Rate Adjustment Date, to be the
interest rate necessary during the Interest Rate Period of six months commencing
on the applicable Interest Rate Adjustment Date in the judgment of the
Remarketing Agent (taking into consideration current transactions and comparable
securities in which the Remarketing Agent is involved or of which it is aware
and prevailing financial market conditions) to produce a par bid for the Series
1999 Bonds on the Interest Rate Determination Date or (b) in the event that the
Remarketing Agent has been removed or has resigned and no successor has been
appointed, or the Remarketing Agent has failed to determine the Six Month
Interest Rate for whatever reason, or the Six Month Interest Rate cannot be
determined pursuant to clause (a) for whatever reason, the interest rate then in

                                      11
<PAGE>

effect with respect to the Series 1999 Bonds, without adjustment; provided that
in no event shall the Six Month Interest Rate exceed 12% per annum.

          "Special Record Date" means, with respect to any Series 1999 Bond, the
date established by the Trustee in connection with the payment of overdue
interest on that Series 1999 Bond pursuant to Section 3.05 hereof.

          "State" means the State of New Hampshire.

          "Supplemental Indenture" means any indenture supplemental to this
Indenture entered into between the Issuer and the Trustee in accordance with
Article VIII hereof.

          "Tax Regulatory Agreement" means the Tax Regulatory Agreement among
the Borrower, the Issuer and the Trustee, dated as of September 1, 1999, as
amended or supplemented from time to time

          "Three Month Interest Rate" means (a) the rate of interest per annum
determined by the Remarketing Agent, on the Interest Rate Determination Date
immediately preceding the applicable Interest Rate Adjustment Date, to be the
interest rate necessary during the Interest Rate Period of three months
commencing on the applicable Interest Rate Adjustment Date in the judgment of
the Remarketing Agent (taking into consideration current transactions and
comparable securities in which the Remarketing Agent is involved or of which it
is aware and prevailing financial market conditions) to produce a par bid for
the Series 1999 Bonds on the Interest Rate Determination Date or (b) in the
event that the Remarketing Agent has been removed or has resigned and no
successor has been appointed, or the Remarketing Agent has failed to determine
the Three Month Interest Rate for whatever reason, or the Three Month Interest
Rate cannot be determined pursuant to clause (a) for whatever reason, the
interest rate then in effect with respect to the Series 1999 Bonds, without
adjustment; provided that in no event shall the Three Month Interest Rate exceed
12% per annum.

          "Trustee" means the Trustee at the time acting as such under the
Indenture, initially The Huntington National Bank, and any successor Trustee as
determined or designated under or pursuant to the Indenture.

          "Unassigned Issuer's Rights" means the Unassigned Issuer's Rights as
defined in the Agreement.

          "Weekly Interest Rate" means (a) the rate of interest per annum
determined by the Remarketing Agent, on the Interest Rate Determination Date
immediately preceding the applicable Interest Rate Adjustment Date, to be the
interest rate necessary during the Interest Rate Period of one week commencing
on the applicable Interest Rate Adjustment Date in the judgment of the
Remarketing Agent (taking into consideration current transactions and comparable
securities in which the Remarketing Agent is involved or of which it is aware
and prevailing financial market conditions) to produce a par bid for the Series
1999 Bonds on the Interest Rate Determination Date or (b) in the event that the
Remarketing Agent has been removed or has resigned and no successor has been
appointed, or the Remarketing Agent has failed to determine the Weekly Interest
Rate for whatever reason, or the Weekly Interest Rate cannot be determined
pursuant to clause (a) for whatever reason, the interest rate then in effect

                                      12
<PAGE>

with respect to the Series 1999 Bonds, without adjustment; provided that in no
event shall the Weekly Interest Rate exceed 12% per annum.

          SECTION 1.02   Interpretation. Any reference herein to the Issuer or
                         --------------
to any officer thereof includes entities or officials succeeding to their
respective functions, duties or responsibilities pursuant to or by operation of
law or who are lawfully performing their functions.

          Any reference to a section or provision of the Constitution of the
State or the Act, or to any statute of the United States of America, includes
that section, provision or chapter as amended, modified, revised, supplemented
or superseded from time to time; provided, that no amendment, modification,
revision, supplement or superseding section, provision or chapter shall be
applicable solely by reason of this paragraph, if it constitutes in any way an
impairment of the rights or obligations of the Issuer, the Holders, the Trustee,
the Registrar, Paying Agents, Authenticating Agents, the Letter of Credit Bank,
the Remarketing Agent, or the Borrower under this Indenture, the Bond
Legislation, the Bonds, the Agreement, the Letter of Credit, the Letter of
Credit Agreement, the Placement Agreement or any other instrument or document
entered into in connection with any of the foregoing, including without
limitation, any alteration of the obligation to pay Bond Service Charges in the
amount and manner, at the times, and from the sources provided in the Bond
Legislation and this Indenture, except as permitted herein.

          Unless the context indicates otherwise, words importing the singular
number include the plural number, and vice versa. The terms "hereof", "hereby",
"herein", "hereto", "hereunder", "hereinafter" and similar terms refer to this
Indenture. Words of any gender include the correlative words of the other
genders, unless the sense indicates otherwise.

          SECTION 1.03.  Captions and Headings. The captions and headings in
                         ---------------------
this Indenture are solely for convenience of reference and in no way define,
limit or describe the scope or intent of any Articles, Sections, subsections,
paragraphs, subparagraphs or clauses hereof.

                              (End of Article I)

                                      13
<PAGE>

                                  ARTICLE II

                 AUTHORIZATION AND TERMS OF SERIES 1999 BONDS;
                               ADDITIONAL BONDS

          SECTION 2.01. Authorized Amount of Bonds; Limited Obligations.
                        -----------------------------------------------
No Bonds may be issued under this Indenture except in accordance with this
Article. The total authorized principal amount of Series 1999 Bonds which shall
be issued under the provisions of this Indenture is $3,500,000. The Issuer may
issue, sell and deliver one or more series of Additional Bonds for the purposes,
upon satisfaction of the conditions and in the manner provided herein.

          Under no circumstances shall the Issuer be obligated directly or
indirectly to pay Project Costs, principal of or premium, if any, and interest
on the Bonds, or expenses of operation, maintenance and upkeep of the Project
except from Bond proceeds or from funds received under the Bond Documents,
exclusive of funds received by the Issuer for its own use. The Bond Documents
shall not create any debt of the State with respect to the Project other than a
special obligation of the Issuer acting on behalf of the State pursuant to RSA
162-I. Nothing contained therein shall in any way obligate the State of New
Hampshire to raise any money by taxation or use other public funds for any
purpose in relation to the Project. Neither the State nor the Issuer shall pay
or promise to pay any debt or meet any financial obligation to any person at any
time in relation to the Project except (i) from moneys received or to be
received under the provisions of the Bond Documents or derived from the exercise
of the Issuer's rights thereunder, other than moneys received for its own
purposes, or (ii) as may be required by law other than the provisions of RSA
162-I.

          SECTION 2.02. Issuance of Series 1999 Bonds. The Issuer shall issue,
                        -----------------------------
sell and deliver $3,500,000 principal amount of Series 1999 Bonds in order,
together with other funds to be provided by the Borrower, to acquire, construct,
equip, renovate, and install the Project. The Series 1999 Bonds shall be
designated "Adjustable Rate Demand Industrial Development Revenue Bonds, Series
1999 (Apex Telecommunications Manufacturing, Inc. Project)"; shall be issuable,
unless a supplemental indenture shall have been executed and delivered pursuant
to Section 8.02(h) hereof, only in fully registered form, substantially as set
forth in Exhibit C to this Indenture; the Series 1999 Bonds shall be lettered
"R" and numbered from "1" upward, unless otherwise determined by the Trustee, in
order to distinguish each Series 1999 Bond from any other Series 1999 Bond; and
shall be in the denominations of $100,000 and any integral multiple of $5,000 in
excess thereof. The Series 1999 Bonds shall be issued initially in global book-
entry form registered in the name of CEDE & Co., as nominee for DTC; shall be
dated initially as of the date of their delivery; and shall be issued initially
in minimum denominations of $250,000. Upon any exchange or transfer and
surrender of any Series 1999 Bond in accordance with the provisions hereof, the
Issuer shall execute and the Trustee shall authenticate and deliver one or more
new Series 1999 Bonds in exchange therefor as provided herein. Any such new
Series 1999 Bond shall be dated as of the date of its authentication.

          SECTION 2.03. Maturity and Interest. The Series 1999 Bonds shall
                        ---------------------
mature on September 1, 2019, subject to optional and mandatory redemption as set
forth herein, and shall bear interest from the most recent date to which
interest has been paid or duly provided for or, if

                                       14
<PAGE>

no interest has been paid or duly provided for, from their respective dates,
payable on each Interest Payment Date. The Series 1999 Bonds will have interest
payable monthly on the first Business Day of each month, commencing November 1,
1999, and will bear interest at the rates of interest as determined in the
manner described below.

          From the date of initial delivery of the Series 1999 Bonds through
October 6, 1999 and, except as hereinafter provided in this Section 2.03, for
each succeeding weekly period, the interest rate on the Series 1999 Bonds shall
be the Weekly Interest Rate for such period as established on, initially, the
delivery date of the Series 1999 Bonds and subsequently, the Interest Rate
Determination Date immediately preceding the commencement of such weekly period.

          On December 1, 1999 and on any Interest Period Reset Date thereafter,
the interest rate on the Series 1999 Bonds may be converted to a different
Interest Rate Mode upon receipt by the Trustee and the Remarketing Agent of a
direction from the Borrower, with the prior written consent of the Letter of
Credit Bank, not less than 45 days prior to such Interest Period Reset Date, to
convert the interest rate on the Series 1999 Bonds to an Interest Rate Mode
other than the Interest Rate Mode then in effect. Such direction to convert the
interest rate on the Series 1999 Bonds to a different Interest Rate Mode shall
be accompanied by (a) evidence satisfactory to the Trustee that the Letter of
Credit Termination Date is no earlier than the date which is at least 15 days
beyond the end of the Interest Rate Period to commence on the applicable
Interest Period Reset Date and (b) an opinion of Bond Counsel delivered to the
Issuer, the Trustee, the Letter of Credit Bank and the Remarketing Agent,
stating that such conversion to the specified Interest Rate Mode will not
adversely affect the exclusion of the interest on such Series 1999 Bonds from
gross income for federal income tax purposes.

          On each Interest Rate Determination Date, the Remarketing Agent shall
give the Trustee, the Borrower and the Letter of Credit Bank telephonic notice
(immediately followed in writing) of the interest rate to be borne by the Series
1999 Bonds for the following Interest Rate Period; provided that if the interest
rate is determined pursuant to clause (b) of the definition of the applicable
Interest Rate Mode, on the Interest Rate Determination Date, the Trustee shall
give notice to the Borrower and the Letter of Credit Bank as above provided. On
any Interest Rate Determination Date, the Remarketing Agent (or the Trustee if
the interest rate is determined pursuant to such clause (b)) shall make the new
interest rate available by telephone to the Holders of the Series 1999 Bonds
upon their request.

          If the interest rate on the Series 1999 Bonds is converted to a
different Interest Rate Mode, at least 30 days prior to an Interest Period Reset
Date, the Trustee shall notify the Holders of all outstanding Series 1999 Bonds
by telephone, immediately confirmed by first class mail, that upon such date all
Series 1999 Bonds shall be converted to a different Interest Rate Mode, which
Interest Rate Mode shall be specified and that all such Series 1999 Bonds shall
be subject to a mandatory tender pursuant to Section 2.06.A. hereof.

          While the Series 1999 Bonds bear interest at the Weekly Interest Rate,
interest shall be calculated on the basis of a 365 or 366-day year for the
number of days actually elapsed; otherwise interest shall be calculated on the
basis of a 360-day year and twelve 30-day months.

          Any calculation of the interest rate to be borne by the Series 1999
Bonds shall be rounded to the nearest one-hundredth of one percent (0.01%). The
computation of the interest

                                       15
<PAGE>

rate on the Series 1999 Bonds by the Remarketing Agent or the Trustee, as
applicable, shall be binding and conclusive upon the Holders of the Series 1999
Bonds, absent manifest error.

          SECTION 2.04. Delivery of the Series 1999 Bonds. Upon the execution
                        ---------------------------------
and delivery of this Indenture, and satisfaction of the conditions established
by the Issuer and in the Placement Agreement for delivery of the Series 1999
Bonds, the Issuer shall execute the Series 1999 Bonds and deliver them to the
Trustee. Thereupon, the Trustee shall authenticate the Series 1999 Bonds and
deliver them to, or on the order of, the Original Purchaser thereof, as directed
by the Issuer in accordance with this Section 2.04.

          Before the Trustee delivers any Series 1999 Bonds, the Trustee shall
have received a request and authorization to the Trustee on behalf of the
Issuer, signed by the Executive or the Fiscal Officer of the Issuer, to
authenticate and deliver the Series 1999 Bonds to, or on the order of, the
Original Purchaser upon payment to the Trustee of the amount specified therein,
which amount shall be deposited as provided in Sections 5.01 and 5.04 hereof.

          SECTION 2.05. Bondholders' Tender Options.
                        ---------------------------

          A. 1. Tender Option While Series 1999 Bonds Bear Interest in an
                ---------------------------------------------------------
Interest Rate Mode Other Than the Weekly Interest Rate. While the Series 1999
------------------------------------------------------
Bonds bear interest at the Three Month Interest Rate, the Six Month Interest
Rate, the One Year Interest Rate, the Five Year Interest Rate or the Seven Year
Interest Rate, on each Interest Rate Adjustment Date, through and including the
Interest Rate Adjustment Date next preceding the Letter of Credit Termination
Date (each a "Bond Purchase Date"), each Holder thereof shall have the option to
tender for purchase, at 100% of the principal amount thereof plus accrued
interest to the Bond Purchase Date, all of the Series 1999 Bonds (so long as
such Series 1999 Bonds have not previously been selected for redemption) owned
by such Holder, or, if such Holder owns more than $100,000 of such Series 1999
Bonds, such lesser principal amount thereof in the minimum amount of $100,000
and any integral multiple of $5,000 in excess thereof as such Holder may specify
in accordance with the terms, conditions and limitations hereinafter set forth,
so long as such Holder, following the Bond Purchase Date, retains Series 1999
Bonds in the minimum amount of $100,000. The purchase price for each such Series
1999 Bond shall be payable in lawful money of the United States of America,
shall equal the principal amount, or such portion thereof, to be purchased plus
accrued interest, and shall be paid in full on the applicable Bond Purchase
Date.

          A. 2. Tender Option While Series 1999 Bonds Bear Interest at the
                ----------------------------------------------------------
Weekly Interest Rate. While the Series 1999 Bonds bear interest at the Weekly
--------------------
Interest Rate, each Holder thereof has the option to tender for purchase, at
100% of the principal amount thereof plus accrued interest to the purchase date
(a "Bond Purchase Date"), all of the Series 1999 Bonds (so long as such Series
1999 Bonds have not previously been selected for redemption) owned by such
Holder, or, if such Holder owns more than $100,000 of such Series 1999 Bonds,
such lesser principal amount in the minimum amount of $100,000 and any integral
multiple of $5,000 in excess thereof as such Holder may specify in accordance
with the terms, conditions and limitations hereafter set forth, so long as such
Holder, following the Bond Purchase Date, retains Series 1999 Bonds in the
minimum amount of $100,000. The purchase price for each such Series 1999 Bond
shall be payable in lawful money of the United States of America shall equal

                                       16
<PAGE>

the principal amount, or such portion thereof, to be purchased, plus accrued
interest to the purchase date and shall be paid in full on the applicable Bond
Purchase Date.

          B. 1. To exercise the option granted in Section 2.05.A.1. hereof, the
Holder shall (1) no later than 11:00 a.m. according to the local time at the
principal corporate trust office of the Trustee on the eighth Business Day prior
to the Bond Purchase Date, give notice to the Trustee by telephone, telegraph or
in writing, which states (i) the name and address of the Holder, (ii) the
principal amount of the Series 1999 Bonds to be purchased, and (iii) that the
Series 1999 Bonds are to be purchased on such Bond Purchase Date pursuant to the
terms hereof, and (2) no later than 11:00 a.m. according to the local time at
the principal corporate trust office of the Trustee on the fifth Business Day
preceding such Bond Purchase Date, deliver to the principal corporate trust
office of the Trustee the Series 1999 Bonds to be purchased in proper form,
accompanied by fully completed and executed Instructions to Sell, the form of
which shall be printed on the Series 1999 Bonds. Upon delivery of Series 1999
Bonds or portions of Series 1999 Bonds to the Trustee pursuant to this paragraph
with properly completed Instructions to Sell attached, the Holder's tender of
such Series 1999 Bonds or portions thereof shall be irrevocable. The Trustee
shall determine whether Instructions to Sell have been properly submitted, and
its determination shall be binding; provided that, if the Instructions to Sell
are not properly submitted, the Series 1999 Bonds delivered shall not be deemed
to have been tendered and the Trustee shall return the Series 1999 Bonds to the
Holder which tendered such Series 1999 Bonds with improperly completed
Instructions to Sell and shall have no other obligation in connection with such
improper tender. If less than all of a Series 1999 Bond so delivered is to be
purchased, the Trustee shall, at the cost of the Holder, pursuant to the
Indenture, authenticate one or more Series 1999 Bonds of the same series in
exchange therefor, registered in the name of such Holder, having the aggregate
principal amount being retained by such registered Holder, and shall deliver
such authenticated Series 1999 Bond or Series 1999 Bonds to such Holder.

          B. 2. To exercise the option granted in Section 2.05.A.2. hereof, the
Holder shall (1) give notice to the Trustee by telephone, telegraph or in
writing, which states (i) the name and address of the Holder, (ii) the principal
amount of the Series 1999 Bonds to be purchased, and (iii) the date on which
such Series 1999 Bonds are to be purchased, which Bond Purchase Date shall be a
Business Day not prior to the seventh (7th) day next succeeding the date of
delivery of such notice to the Trustee and, if the interest rate on the Series
1999 Bonds is to be converted from the Weekly Interest Rate to a new Interest
Rate Mode, is a date prior to the Interest Rate Adjustment Date with respect to
the new Interest Rate Mode, and (2) no later than 10:00 a.m. according to the
local time at the principal corporate trust office of the Trustee on the
Business Day immediately preceding the applicable Bond Purchase Date, deliver to
the principal corporate trust office of the Trustee the Series 1999 Bonds to be
purchased in proper form, accompanied by fully completed and executed
Instructions to Sell, the form of which shall be printed on the Series 1999
Bonds. Upon delivery of Series 1999 Bonds or portions of Series 1999 Bonds to
the Trustee pursuant to this paragraph with properly completed Instructions to
Sell attached, the Holder's tender of such Bonds or portions thereof shall be
irrevocable. The Trustee shall determine whether Instructions to Sell have been
properly submitted and its determination shall be binding; provided that, if the
Instructions to Sell are not properly submitted, the Series 1999 Bonds delivered
shall not be deemed to have been tendered and the Trustee shall return the
Series 1999 Bonds to the Holder which tendered such Series 1999 Bonds with
improperly completed Instructions to Sell and shall have no other obligation in
connection with such

                                       17
<PAGE>

improper tender. If less than all of a Series 1999 Bond so delivered is to be
purchased, the Trustee shall, at the cost of the Holder, pursuant to this
Indenture authenticate one or more Series 1999 Bonds in exchange therefor,
registered in the name of such holder, having the aggregate principal amount
being retained by such registered Holder, and shall deliver such authenticated
Series 1999 Bond or Series 1999 Bonds to such Holder.

          C.    The options granted in this Section 2.05 are subject to the
additional condition that if the Series 1999 Bonds have been accelerated
pursuant to Section 7.03 hereof, then the Bond Purchase Date shall be deemed to
be the date on which the Series 1999 Bonds are to be retired from Eligible Funds
or Letter of Credit proceeds pursuant to such acceleration, and the ability to
tender Series 1999 Bonds granted in this Section 2.05 shall not otherwise be
affected or impaired by such acceleration of the Series 1999 Bonds.

          D.    While tendered Series 1999 Bonds are in the custody of the
Trustee pending purchase pursuant hereto, the tendering Holders thereof shall be
deemed the owners thereof for all purposes, and interest accruing on tendered
Series 1999 Bonds through the applicable Bond Purchase Date is to be paid from
the Bond Fund as if such Bonds had not been tendered for purchase.

          E.    Series 1999 Bonds tendered and purchased pursuant hereto shall
continue to be outstanding for all purposes hereunder, and such Series 1999
Bonds may be retained or sold by any subsequent purchaser thereof.

          SECTION 2.06. Mandatory Tender.
                        ----------------

          A.    Mandatory Tender Upon Interest Rate Mode Conversion. If at any
                ---------------------------------------------------
time the Issuer shall convert the interest rate on the Series 1999 Bonds to a
different Interest Rate Mode in accordance with the provisions of Section 2.03
hereof, then on the date upon which such conversion is effective (a "Bond
Purchase Date"), all Series 1999 Bonds shall be subject to mandatory tender by
the Holders thereof. Notwithstanding such mandatory tender, any Holder may elect
to retain his Series 1999 Bond by delivering to the Trustee a written notice no
less than ten Business Days prior to such Bond Purchase Date which notice shall
state that (a) such Holder acknowledges that the Series 1999 Bonds are being
converted to bear interest at the applicable Interest Rate Mode (b) unless the
interest rate on such Series 1999 Bonds is being converted to the Weekly
Interest Rate, such Holder acknowledges that the next Bond Purchase Date upon
which such Series 1999 Bonds may be tendered for purchase is the next Interest
Rate Adjustment Date or, if such Series 1999 Bonds are being converted to the
Fixed Interest Rate, that such Series 1999 Bonds may no longer be tendered for
purchase, and (c) such Holder affirmatively elects to hold his Series 1999 Bonds
and receive interest at the applicable rate.

          B.    Mandatory Tender Upon Delivery of Alternate Letter of Credit. If
                ------------------------------------------------------------
at any time the Borrower shall provide for the delivery to the Trustee of an
Alternate Letter of Credit in accordance with the provisions of Section 5.09
hereof, then on the date upon which the term of such Alternate Letter of Credit
commences (the "Replacement Date" and a "Bond Purchase Date"), all Series 1999
Bonds shall be subject to mandatory tender by the Holders thereof.
Notwithstanding such mandatory tender, any Holder may elect to retain his Series
1999 Bond by delivering to the Trustee a written notice no less than ten
Business Days prior to such Bond Purchase Date which notice shall state that (a)
such Holder acknowledges that an Alternate

                                       18
<PAGE>

Letter of Credit is being delivered to the Trustee and the Letter of Credit will
be replaced by such Alternate Letter of Credit, and (b) such Holder
affirmatively elects to hold his Series 1999 Bonds.

          C.    Bonds Deemed Tendered. Series 1999 Bonds with respect to which
                ---------------------
the Trustee shall not have received the election required by the preceding
paragraphs A. or B. shall be deemed to have been tendered for purposes of this
Section 2.06 whether or not the Holders thereof shall have delivered such Series
1999 Bonds to the Trustee, and subject to the right of the Holders of such
Series 1999 Bonds to receive the purchase price of such Series 1999 Bonds
pursuant to a draw on the Letter of Credit and to receive interest accrued
thereon to the date of tender thereof, such Series 1999 Bonds shall be null and
void and the Trustee shall authenticate and deliver new Series 1999 Bonds in
replacement thereof pursuant to the remarketing of such Series 1999 Bonds or the
pledge of such Series 1999 Bonds to the Letter of Credit Bank in lieu of
remarketing such Series 1999 Bonds.

          SECTION 2.07. Issuance and Delivery of Additional Bonds. At the
                        -----------------------------------------
request of the Borrower, the Issuer may issue Additional Bonds from time to time
for any purpose permitted by the Act.

          Any Additional Bonds shall be on a parity with the Series 1999 Bonds
and any Additional Bonds theretofore or thereafter issued and outstanding as to
the assignment to the Trustee of the Issuer's right, title and interest in the
Revenues to provide for payment of Bond Service Charges on the Bonds, except
with respect to any moneys drawn by the Trustee under the Letter of Credit,
which moneys shall be pledged to and used only for the payment of the principal
of and interest on, and the purchase price of, the Series 1999 Bonds; provided,
that nothing herein shall prevent payment of Bond Service Charges on, or the
purchase price of, any series of Additional Bonds from (i) being otherwise
secured and protected from sources or by property or instruments not applicable
to the Series 1999 Bonds and any one or more series of Additional Bonds, or (ii)
not being secured or protected from sources or by property or instruments
applicable to the Series 1999 Bonds or one or more series of Additional Bonds.

          Before the Trustee shall authenticate and deliver any Additional
Bonds, the Trustee shall receive the following items:

                    (1)  Original executed counterparts of any amendments or
          supplements to the Agreement and the Indenture entered into in
          connection with the issuance of the Additional Bonds, which are
          necessary or advisable, in the opinion of Bond Counsel, to provide
          that the Additional Bonds will be issued in compliance with the
          provisions of this Indenture.

                    (2)  An additional letter of credit issued by the Letter of
          Credit Bank in substantially the same form as the Letter of Credit for
          the Series 1999 Bonds and being an irrevocable obligation to make
          payment to the Trustee of amounts at least sufficient to enable the
          Trustee to pay (i) the principal amount of the Additional Bonds then
          being issued when due at maturity, upon redemption or acceleration and
          (ii) an amount equal to the purchase price of any Additional Bonds
          tendered for purchase by the holders thereof, plus (b) an amount equal
          to the maximum interest to accrue during the period for which the
          interest rate on

                                       19
<PAGE>

          such Additional Bonds is fixed or payable, whichever is less, plus 15
          days (but in any event, no less than 56 days), to enable the Trustee
          to pay interest on such Additional Bonds.

                    (3)  The originally executed Additional Note evidencing the
          obligation of the Borrower to make Loan Payments sufficient to pay the
          principal of, premium, if any, and interest on such Additional Bonds.

                    (4)  A copy of the written request from the Borrower to the
          Issuer for issuance of the Additional Bonds.

                    (5)  A copy, duly certified by the Clerk of the Issuer, of
          the resolution adopted and approved by the Issuing Authority
          authorizing the Additional Bonds.

                    (6)  A request and authorization to the Trustee on behalf of
          the Issuer, signed by the Executive or the Fiscal Officer, to
          authenticate and deliver the Additional Bonds to, or on the order of,
          the purchaser thereof upon payment to the Trustee of the amount
          specified therein (including without limitation, any accrued
          interest), which amount shall be deposited as provided in the
          applicable resolution or supplemental indenture.

                    (7)  The written opinion of counsel, who may be counsel for
          the Issuer, reasonably satisfactory to the Trustee, to the effect
          that: (i) the documents submitted to the Trustee in connection with
          the request then being made comply with the requirements of this
          Indenture; (ii) the issuance of the Additional Bonds has been duly
          authorized; and (iii) all conditions precedent to the delivery of the
          Additional Bonds have been fulfilled.

                    (8)  A written opinion of Bond Counsel (who also may be the
          counsel to which reference is made in paragraph 7), to the effect
          that: (i) when executed for and in the name and on behalf of the
          Issuer and when authenticated and delivered by the Trustee, those
          Additional Bonds will be valid and legal special obligations of the
          Issuer in accordance with their terms and will be secured hereunder
          equally and on a parity (except with respect to any moneys drawn by
          the Trustee under the Letter of Credit) with all other Bonds at the
          time outstanding hereunder as to the assignment to the Trustee of the
          Issuer's right, title and interest in the Revenues to provide for
          payment of Bond Service Charges on the Bonds; and (ii) the issuance of
          the Additional Bonds will not result in the interest on the Bonds
          outstanding immediately prior to that issuance becoming included in
          gross income for federal income tax purposes.

                    (9)  A written opinion of counsel to the Borrower,
          reasonably satisfactory to the Trustee, to the effect that the
          amendments or supplements to the Agreement have been duly authorized,
          executed and delivered by the Borrower, and that the Agreement, as
          amended or supplemented, constitutes a legal, valid and binding
          obligation of the Borrower, enforceable in accordance with its terms,

                                       20
<PAGE>

          subject to exceptions reasonably satisfactory to the Trustee for
          bankruptcy, insolvency and similar laws and the application of
          equitable principles.

                    (10) The written approval of the Letter of Credit Bank to
          the issuance and delivery of the Additional Bonds, which approval may
          be given or withheld at the sole discretion of the Letter of Credit
          Bank.

          When (i) the documents listed above have been received by the Trustee,
and (ii) the Additional Bonds have been executed and authenticated, the Trustee
shall deliver the Additional Bonds to or on the order of the purchaser thereof,
but only upon payment to the Trustee of the specified amount (including without
limitation, any accrued interest) set forth in the request and authorization to
which reference is made in paragraph 6 above.

                              (End of Article II)

                                       21
<PAGE>

                                  ARTICLE III

                           TERMS OF BONDS GENERALLY

          SECTION 3.01. Form of Bonds. The Bonds, the certificate of
                        -------------
authentication and the form of assignment shall be substantially in the
respective forms thereof set forth in Exhibit C to this Indenture with, in the
case of Additional Bonds, any omissions, insertions and variations which may be
authorized or permitted by the Bond Legislation authorizing, or the Supplemental
Indenture entered into in connection with, those Additional Bonds, all
consistent with this Indenture.

          All Bonds, unless a Supplemental Indenture shall have been executed
and delivered pursuant to Section 8.02 (h) hereof, shall be in fully registered
form, and, except as provided in Section 3.05 hereof, the Holder of a Bond shall
be regarded as the absolute owner thereof for all purposes of this Indenture.

          The Bonds of one series shall bear any designations which may be
necessary or advisable to distinguish them from Bonds of any other series. The
Bonds shall be negotiable instruments in accordance with the Act, and shall
express the purpose for which they are issued and any other statements or
legends which may be required by law. Each Bond of the same series shall be of a
single maturity, unless the Trustee shall approve the authentication and
delivery of a Bond of more than one maturity.

          SECTION 3.02. Variable Terms. Subject to the provisions of this
                        --------------
Indenture, each series of Bonds shall be dated, shall mature in the years and
the amounts, shall bear interest at the rate or rates per annum, shall be
payable on the dates, shall have the Registrar, Paying Agent and Authenticating
Agents, shall be of the denominations, shall be subject to redemption on the
terms and conditions and shall have any other terms which are set forth or
provided for in this Indenture in the case of the Series 1999 Bonds, and in this
Indenture, the applicable Bond Legislation and the Supplemental Indentures, in
the case of any issue of Additional Bonds.

          SECTION 3.03. Execution and Authentication of Bonds. Unless otherwise
                        -------------------------------------
provided in the applicable Bond Legislation or Supplemental Indenture, each Bond
shall bear the signatures of two persons designated by the Issuer who are an
Executive or Fiscal Officer of the Issuer (provided that any such signature may
be a facsimile). In case any officer whose signature or a facsimile of whose
signature shall appear on any Bond shall cease to be that officer before the
issuance of the Bond, his signature or the facsimile thereof nevertheless shall
be valid and sufficient for all purposes, the same as if he had remained in
office until that time. Any Bond may be executed on behalf of the Issuer by an
officer who, on the date of execution is the proper officer, although on the
date of the Bond that person was not the proper officer.

          No Bond shall be valid or become obligatory for any purpose or shall
be entitled to any security or benefit under this Indenture unless and until a
certificate of authentication, substantially in the form set forth in Exhibit C
to this Indenture, has been signed by the Trustee or by any Authenticating Agent
for that series on behalf of the Trustee. The authentication by the Trustee or
by an Authenticating Agent upon any Bond shall be conclusive evidence that the
Bond so authenticated has been duly authenticated and delivered hereunder and is
entitled to the

                                       22
<PAGE>

security and benefit of this Indenture. The certificate of the Trustee or an
Authenticating Agent may be executed by any person authorized by the Trustee or
Authenticating Agent, but it shall not be necessary that the same authorized
person sign the certificates of authentication on all of the Bonds of a series.

          SECTION 3.04. Source of Payment of Bonds. The Bond Service Charges
                        --------------------------
thereon shall be payable equally and ratably solely from the Revenues, and the
payment of Bond Service Charges on the Bonds shall be secured by the assignment
of Revenues hereunder and by this Indenture. The Bonds of each series shall also
be payable from moneys derived by the Trustee from drawings under the letters of
credit related to each series of Bonds. Notwithstanding anything to the contrary
in the Bond Legislation, the Bonds or this Indenture, the Bonds are not general
obligations, debt or bonded indebtedness of the Issuer.

          SECTION 3.05. Payment and Ownership of Bonds. Bond Service Charges
                        ------------------------------
shall be payable in lawful money of the United States of America without
deduction for the services of the Trustee or any Paying Agent. The principal of
and any premium on any Bond shall be payable when due to a Holder upon
presentation and surrender of such Bond at the principal corporate trust office
of the Trustee or at the office, designated by the Trustee, of any Paying Agent.
Interest on any Bond shall be paid on each Interest Payment Date by check or
draft which the Trustee shall cause to be mailed on that date to the person in
whose name the Bond (or one or more Predecessor Bonds) is registered at the
close of business on the Regular Record Date applicable to that Interest Payment
Date on the Register at the address appearing therein, or shall be paid by wire
transfer in immediately available funds to the bank account number and address
filed with the Trustee. While in book entry form, payment of interest for any
Series 1999 Bond registered in the name of CEDE & Co. shall be made by wire
transfer of same day funds or such other manner as permitted by the Letter of
Representations, to the account of CEDE & Co. on the Interest Payment Date, the
redemption date or the maturity date at the address indicated for CEDE & Co. on
the Register. If and to the extent, however, that the Issuer shall fail to make
payment or provision for payment of interest on any Bond on any Interest Payment
Date, that interest shall cease to be payable to the Person who was the Holder
of that Bond (or of one or more Predecessor Bonds) as of the applicable Regular
Record Date. When moneys become available for payment of the interest, (x) the
Trustee shall, pursuant to Section 7.06(d), establish a Special Record Date for
the payment of that interest which shall be not more than 15 nor fewer than 10
days prior to the date of the proposed payment, and (y) the Trustee shall cause
notice of the proposed payment and of the Special Record Date to be mailed by
first class mail, postage prepaid, to each Holder at its address as it appears
on the Register not fewer than 10 days prior to the Special Record Date and,
thereafter, the interest shall be payable to the Persons who are the Holders of
the Bonds (or their respective Predecessor Bonds) at the close of business on
the Special Record Date.

          Subject to the foregoing, each Bond delivered under this Indenture
upon transfer thereof, or in exchange for or in replacement of any other Bond,
shall carry the rights to interest accrued and unpaid, and to accrue on that
Bond, or which were carried by that Bond.

          Except as provided in this Section 3.05 and in the first paragraph of
Section 3.07 hereof, (i) the Holder of any Bond shall be deemed and regarded as
the absolute owner thereof for all purposes of this Indenture, (ii) payment of
or on account of the Bond Service Charges on any Bond shall be made only to or
upon the order of that Holder or its duly authorized attorney

                                       23
<PAGE>

in the manner permitted by this Indenture, and (iii) neither the Issuer, the
Trustee, the Registrar nor any Paying Agent or Authenticating Agent shall, to
the extent permitted by law, be affected by notice to the contrary. In the event
that any of the Series 1999 Bonds are registered in the name of a securities
depository which uses a book entry system, the standing of the Beneficial Owner
to enforce any of the covenants herein may be established through the books and
records of such securities depository or a participant therein. All of those
payments shall be valid and effective to satisfy and discharge the liability
upon that Bond, including without limitation, the interest thereon, to the
extent of the amount or amounts so paid.

          SECTION 3.06. Transfer and Exchange of Bonds. So long as any of the
                        ------------------------------
Bonds remain outstanding, the Issuer will cause books for the registration and
transfer of Bonds, as provided in this Indenture, to be maintained and kept at
the designated office of the Registrar.

          Unless otherwise provided in the applicable Bond Legislation or
Supplemental Indenture, Bonds may be exchanged, at the option of their Holder,
for Bonds of the same series and of any authorized denomination or denominations
in an aggregate principal amount equal to the unmatured and unredeemed principal
amount of, and bearing interest at the same rate and maturing on the same date
or dates as, the Bonds being exchanged. The exchange shall be made upon
presentation and surrender of the Bonds being exchanged at the designated office
of the Registrar or at the designated office of any Authenticating Agent for
that series of Bonds, together with an assignment duly executed by the Holder or
its duly authorized attorney in any form which shall be satisfactory to the
Registrar or the Authenticating Agent, as the case may be.

          Any Bond may be transferred upon the Register, upon presentation and
surrender thereof at the designated office of the Registrar or the designated
office of any Authenticating Agent for the series thereof, together with an
assignment duly executed by the Holder or its duly authorized attorney in any
form which shall be satisfactory to the Registrar or the Authenticating Agent,
as the case may be. Upon transfer of any Bond and on request of the Registrar or
the Authenticating Agent, the Issuer shall execute in the name of the
transferee, and the Registrar or the Authenticating Agent, as the case may be,
shall authenticate and deliver, a new Bond or Bonds of the same series, of any
authorized denomination or denominations in an aggregate principal amount equal
to the unmatured and unredeemed principal amount of, and bearing interest at the
same rate and maturing on the same date or dates as, the Bonds presented and
surrendered for transfer.

          In all cases in which Bonds shall be exchanged or transferred
hereunder, the Issuer shall execute, and the Registrar or any Authenticating
Agent, as the case may be, shall authenticate and deliver, Bonds in accordance
with the provisions of this Indenture. The exchange or transfer shall be made
without charge; provided, that the Issuer and the Registrar or the
Authenticating Agent, as the case may be, may make a charge for every exchange
or transfer of Bonds sufficient to reimburse them for any tax or excise required
to be paid with respect to the exchange or transfer. The charge shall be paid
before a new Bond is delivered.

          All Bonds issued upon any transfer or exchange of Bonds shall be the
valid obligations of the Issuer, evidencing the same debt, and entitled to the
same benefits under this Indenture, as the Bonds surrendered upon transfer or
exchange. Neither the Issuer, the Registrar nor any Authenticating Agent, as the
case may be, shall be required to make any exchange or transfer of a Bond during
a period beginning at the opening of business 15 days before the day of

                                       24
<PAGE>

the mailing of a notice of redemption of Bonds and ending at the close of
business on the day of such mailing or to transfer or exchange any Bonds
selected for redemption, in whole or in part.

          In case any Bond is redeemed in part only, on or after the redemption
date and upon presentation and surrender of the Bond, the Issuer shall cause
execution of, and the Registrar or any Authenticating Agent for the series of
that Bond shall authenticate and deliver, a new Bond or Bonds of the same series
in authorized denominations in an aggregate principal amount equal to the
unmatured and unredeemed portion of, and bearing interest at the same rate and
maturing on the same date or dates as, the Bond redeemed in part.

          For purposes of this Section the Trustee shall establish the
designated office of the Registrar and the Authenticating Agent.

          SECTION 3.07. Mutilated, Lost, Wrongfully Taken or Destroyed Bonds. If
                        ----------------------------------------------------
any Bond is mutilated, lost, wrongfully taken or destroyed, in the absence of
written notice to the Issuer or the Registrar that a lost, wrongfully taken or
destroyed Bond has been acquired by a bona fide purchaser, the Issuer shall
execute, and the Registrar shall authenticate and deliver, a new Bond of like
date, maturity and denomination and of the same series as the Bond mutilated,
lost, wrongfully taken or destroyed; provided, that (i) in the case of any
mutilated Bond, the mutilated Bond first shall be surrendered to the Registrar,
and (ii) in the case of any lost, wrongfully taken or destroyed Bond, there
first shall be furnished to the Trustee, the Issuer and the Borrower evidence of
the loss, wrongful taking or destruction satisfactory to the Trustee, the Issuer
and the Borrower, together with indemnity satisfactory to the Trustee, the
Issuer and the Borrower.

          If any lost, wrongfully taken or destroyed Bond shall have matured,
instead of issuing a new Bond, the Authorized Borrower Representative may direct
the Trustee to pay that Bond without surrender thereof upon the furnishing of
satisfactory evidence and indemnity as in the case of issuance of a new Bond.
The Issuer, the Registrar and the Trustee may charge the Holder of a mutilated,
lost, wrongfully taken or destroyed Bond their reasonable fees and expenses in
connection with their actions pursuant to this Section.

          Every new Bond issued pursuant to this Section by reason of any Bond
being mutilated, lost, wrongfully taken or destroyed (i) shall constitute, to
the extent of the outstanding principal amount of the Bond lost, mutilated,
taken or destroyed, an additional contractual obligation of the Issuer,
regardless of whether the mutilated, lost, wrongfully taken or destroyed Bond
shall be enforceable at any time by anyone and (ii) shall be entitled to all of
the benefits of this Indenture equally and proportionately with any and all
other Bonds issued and outstanding hereunder.

          All Bonds shall be held and owned on the express condition that the
foregoing provisions of this Section are exclusive with respect to the
replacement or payment of mutilated, lost, wrongfully taken or destroyed Bonds
and, to the extent permitted by law, shall preclude any and all other rights and
remedies with respect to the replacement or payment of negotiable instruments or
other investment securities without their surrender, notwithstanding any law or
statute to the contrary now existing or enacted hereafter.

                                       25
<PAGE>

          SECTION 3.08. Cancellation of Bonds. Except as provided in Section
                        ---------------------
3.06 hereof, any Bonds surrendered pursuant to this Article for the purpose of
payment or retirement or for exchange, replacement or transfer shall be
cancelled upon presentation and surrender thereof to the Registrar, the Trustee
or any Paying Agent or Authenticating Agent. Any Bond cancelled by the Trustee
or a Paying Agent or Authenticating Agent shall be transmitted promptly to the
Registrar by the Trustee, Paying Agent, or Authenticating Agent.

          The Issuer, or the Borrower on behalf of the Issuer, may deliver at
any time to the Registrar for cancellation any Bonds previously authenticated
and delivered hereunder, which the Issuer or the Borrower may have acquired in
any manner whatsoever. All Bonds so delivered shall be cancelled promptly by the
Registrar. Certification of the surrender and cancellation shall be made to the
Issuer and the Trustee by the Registrar at least twice each calendar year.
Unless otherwise directed by the Issuer, cancelled Bonds shall be retained and
stored by the Registrar for a period of seven years after their cancellation.
Those cancelled Bonds shall be destroyed by the Registrar by shredding or
incineration seven years after their cancellation or at any earlier time
directed by the Issuer. The Registrar shall provide certificates describing the
destruction of cancelled Bonds to the Issuer and the Trustee.

          SECTION 3.09. Payments Due on Legal Holidays. In any case where the
                        ------------------------------
date of maturity of interest on, principal of or premium, if any, on the Bonds
or the date fixed for the redemption or purchase of any Bond will not be a
Business Day, then payment of such interest on, principal of or premium, if any,
or purchase price payment on the Bonds need not be made on such date but may be
made on the next succeeding Business Day with the same force and effect as if
made on the date of maturity or the date fixed for redemption or purchase and
interest shall accrue for the period to such next succeeding Business Day.

          SECTION 3.10. Book Entry. (a) Except as provided in Section 3.11
                        ----------
hereof, the Series 1999 Bonds shall be deposited with DTC and the Series 1999
Bonds shall be registered in the name of CEDE & Co., as nominee for DTC. The
Issuer and the Trustee shall enter into the Letter of Representations with DTC,
and the provisions of such Letter of Representations shall be incorporated
herein by reference. The provisions of the Letter of Representation shall
control to the extent provisions therein are inconsistent with any provision of
this Indenture.

(b) The Series 1999 Bonds shall be initially issued in the form of single fully
registered certificates in the amount of each separate stated maturity and
series of the Series 1999 Bonds. Upon initial issuance, the ownership of such
Series 1999 Bonds shall be registered on the Register in the name of CEDE & Co.,
as nominee of DTC. The Trustee and the Issuer may treat DTC (or its nominee) as
the sole and exclusive registered owner of the Series 1999 Bonds registered in
its name for the purposes of payment of the principal, or redemption price of or
interest on the Series 1999 Bonds, selecting the Series 1999 Bonds or portions
thereof to be redeemed, giving any notice permitted or required to be given to
Bondholders under this Indenture, registering the transfer of Series 1999 Bonds,
obtaining any consent or other action to be taken by Bondholders and for all
other purposes whatsoever; and neither the Trustee nor the Issuer shall be
affected by any notice to the contrary. Neither the Trustee nor the Issuer shall
have any responsibility or obligation to any DTC Participant, any person
claiming a beneficial ownership interest in the Series 1999 Bonds under or
through DTC or any DTC Participant, or any other person which is not shown on
the Register as being a registered owner, with respect to the accuracy of any
records maintained by DTC or any DTC Participant or others that clear

                                       26
<PAGE>

through or maintain a custodial relationship with a DTC Participant, either
directly or indirectly (an "Indirect Participant"); the payment of DTC or any
DTC Participant or Indirect Participant of any amount in respect of the
principal or redemption price of or interest on the Series 1999 Bonds; any
notice which is permitted or required to be given to Bondholders under this
Indenture; the selection by DTC of any person to receive payment in the event of
a partial redemption of the Series 1999 Bonds; or any consent given or other
action taken by DTC as Bondholder. The Trustee shall pay from moneys available
hereunder all principal of, and premium, if any, and interest on the Series 1999
Bonds only to or "upon the order of" DTC (as that term is used in the Uniform
Commercial Code as adopted in the State), and all such payments shall be valid
and effective to fully satisfy and discharge the Issuer's obligations with
respect to the principal of, and premium, if any, and interest on the Series
1999 Bonds to the extent of the sum or sums so paid. Except as otherwise
provided in Section 3.11 hereof, no person other than DTC shall receive an
authenticated Series 1999 Bond certificate for each separate stated maturity and
series evidencing the obligation of the Issuer to make payments of principal of,
and premium, if any, and interest on the Series 1999 Bonds pursuant to this
Indenture. Upon delivery by DTC to the Trustee of written notice to the effect
that DTC has determined to substitute a new nominee in place of CEDE & Co., and
subject to the provisions of this Indenture with respect to transfers of Series
1999 Bonds, the word "CEDE & Co." in this Indenture shall refer to such new
nominee of DTC.

(c) A Beneficial Owner shall give notice to elect to have its Series 1999 Bonds
purchased or tendered, through its DTC Participant, to the Trustee, and shall
effect delivery of such Series 1999 Bonds by causing the DTC Participant to
transfer the Participant's interest in the Series 1999 Bonds, on DTC's records,
to the Trustee. The requirement for physical delivery of Series 1999 Bonds in
connection with an optional tender or a mandatory purchase will be deemed
satisfied when the ownership rights in the Series 1999 Bonds are transferred by
Direct Participants on DTC's records and followed by a book-entry credit of
tendered Series 1999 Bonds to the Trustee's DTC account.

          SECTION 3.11. Delivery of Series 1999 Bond Certificates. In the event
                        -----------------------------------------
the Issuer determines that it is in the best interest of the Beneficial Owners
that they be able to obtain Series 1999 Bond certificates, the Issuer may notify
DTC and the Trustee, whereupon DTC will notify the DTC Participants, of the
availability through DTC of Series 1999 Bond certificates. In such event, the
Trustee shall issue, transfer and exchange, at the Borrower's expense, Series
1999 Bond certificates as requested by DTC in appropriate amounts. DTC may
determine to discontinue providing its services with respect to the Series 1999
Bonds at any time by giving notice to the Issuer and the Trustee and discharging
its responsibilities with respect thereto under applicable law. Under such
circumstances (if there is no successor securities depository), the Issuer and
the Trustee shall be obligated to deliver Series 1999 Bond certificates as
described in this Indenture, provided that the expense in connection therewith
shall be paid by the Borrower. In the event Series 1999 Bond certificates are
issued, the provisions of this Indenture shall apply to, among other things, the
transfer and exchange of such certificates and the method of payment of
principal of, premium, if any, and interest on such certificates. Whenever DTC
requests the Issuer and the Trustee to do so, the Trustee and the Issuer will
cooperate with DTC in taking appropriate action after reasonable notice (a) to
make available one or more separate certificates evidencing the Series 1999
Bonds to any DTC Participant having Series 1999 Bonds credited to

                                       27
<PAGE>

its DTC account or (b) to arrange for another securities depository to maintain
custody of certificates evidencing the Series 1999 Bonds.

                             (End of Article III)

                                       28
<PAGE>

                                  ARTICLE IV

                        REDEMPTION OF SERIES 1999 BONDS

          SECTION 4.01. Terms of Redemption of Series 1999 Bonds. The Series
                        ----------------------------------------
1999 Bonds are subject to redemption prior to stated maturity as follows:

          (a) Mandatory Redemption Upon a Determination of Taxability. Upon the
              -------------------------------------------------------
     occurrence of a Determination of Taxability, the Series 1999 Bonds are
     subject to mandatory redemption by the Issuer on the earliest practicable
     date selected by the Trustee, after consultation with the Borrower, but in
     no event later than 90 days following the Trustee's notification of the
     Determination of Taxability at a redemption price of 103% of the principal
     amount redeemed plus accrued interest to the redemption date.

          (b) Mandatory Redemption Upon Expiration of Letter of Credit. The
              --------------------------------------------------------
     Series 1999 Bonds are subject to mandatory redemption in whole on the
     Interest Payment Date which next precedes the Letter of Credit Termination
     Date pertaining to the Series 1999 Letter of Credit at a redemption price
     of 100% of the outstanding principal amount thereof plus accrued interest
     to the redemption date unless, at least 60 days prior to any such Interest
     Payment Date, (a) the Letter of Credit Bank shall have agreed to an
     extension or further extension of the Letter of Credit Termination Date to
     a date not earlier than one year from the Letter of Credit Termination Date
     being extended or maturity date of Series 1999 Bonds, whichever is earlier,
     or (b) pursuant to Section 5.09 hereof, the Borrower shall have obtained
     and delivered to the Trustee an Alternate Letter of Credit with a
     termination date not earlier than one year from the Letter of Credit
     Termination Date for the Letter of Credit it replaces or the maturity date
     of the Series 1999 Bonds, whichever is earlier.

          (c) Optional Redemption. While the Series 1999 Bonds bear interest at
              -------------------
     the Weekly Interest Rate, the Series 1999 Bonds are also subject to
     redemption by the Issuer (upon direction of the Borrower) prior to maturity
     on any Interest Payment Date, in whole or in part (in integral multiples of
     $100,000), at a redemption price of 100% of the principal amount to be
     redeemed, plus interest accrued to the redemption date.

          While the Series 1999 Bonds bear interest at the Three Month Interest
     Rate, the Six Month Interest Rate or the One Year Interest Rate, any of the
     Series 1999 Bonds are also subject to redemption by the Issuer (upon
     direction of the Borrower) prior to maturity on any Interest Rate
     Adjustment Date, in whole or in part (in integral multiples of $100,000),
     at a redemption price of 100% of the principal amount to be redeemed, plus
     interest accrued to the redemption date.

          While the Series 1999 Bonds bear interest at the Five Year Interest
     Rate and the Seven Year Interest Rate, the Series 1999 Bonds are also
     subject to redemption by the Issuer (at the direction of the Borrower)
     prior to maturity on any Interest Payment Date which is at least three
     years following an Interest Rate Adjustment Date, in whole or in part (in
     integral multiples of $100,000), at a redemption price of 100% of the
     principal amount to be redeemed, plus interest accrued to the redemption
     date.

                                       29
<PAGE>

          Following the Fixed Interest Rate Commencement Date, the Series 1999
     Bonds are also subject to redemption by the Issuer (at the direction of the
     Borrower) prior to maturity in whole at any time on or after the First
     Optional Redemption Date and in part (in integral multiples of $100,000) on
     any Interest Payment Date occurring on or after the First Optional
     Redemption Date, at a redemption price equal to the following percentage of
     the principal amount to be redeemed, and interest accrued to the redemption
     date, as follows:

     Redemption Date                                      Redemption Price
     ---------------                                      ----------------

     First Optional Redemption Date,
     through the following August 31                            103%

     First Anniversary of the First
     Optional Redemption Date, through
     the following August 31                                    102

     Second Anniversary of the First
     Optional Redemption Date, through
     the following August 31                                    101

     Third Anniversary of the First
     Optional Redemption Date and thereafter                    100

          "First Optional Redemption Date" means the September 1 occurring in
     the year which is a number of years after the Fixed Interest Rate
     Commencement Date equal to the number of full years between the Fixed
     Interest Rate Commencement Date and the maturity date of the Series 1999
     Bonds, divided by two; provided that if such quotient is not a whole
     number, such quotient shall be rounded to the next higher whole number.

          (d) Extraordinary Optional Redemption. The Series 1999 Bonds are also
              ---------------------------------
     subject to redemption by the Issuer in the event of the exercise by the
     Borrower of its option (subject to compliance with Section 4.03 hereof) to
     direct that redemption upon occurrence of any of the events described in
     Section 6.2 of the Agreement, (a) at any time in whole, or (b) on any
     Interest Payment Date in part in the event of condemnation of part of the
     Project, as provided in Section 6.2 of the Agreement, in each case, at a
     redemption price of 100% of the principal amount redeemed, plus interest
     accrued to the redemption date.

          (e) Redemption of Series 1999 Bonds. The Trustee shall pay the
              -------------------------------
     redemption price on all Series 1999 Bonds redeemed under this Section 4.01
     in the same manner and from the same sources as provided in Sections 4.05
     and 5.04 hereof for the payment of Bond Service Charges.

          SECTION 4.02. Partial Redemption. If fewer than all of the Bonds of a
                        ------------------
maturity are to be redeemed, the selection of Bonds to be redeemed, or portions
thereof in amounts of $5,000 or any integral multiple thereof, shall be made by
lot by the Trustee in any manner which the Trustee may determine; provided,
however, that Bonds which are held by the Letter of Credit

                                       30
<PAGE>

Bank or which are pledged to the Letter of Credit Bank shall be selected first
for redemption. In the case of a partial redemption of Bonds by lot when Bonds
of denominations greater than $5,000 are then outstanding, each $5,000 unit of
face value of principal thereof shall be treated as though it were a separate
Bond of the denomination of $5,000. If it is determined that one or more, but
not all of the $5,000 units of face value represented by a Bond are to be called
for redemption, then upon notice of redemption of a $5,000 unit or units, the
Holder of that Bond shall surrender the Bond to the Trustee (a) for payment of
the redemption price of the $5,000 unit or units of face value called for
redemption (including without limitation, the interest accrued to the date fixed
for redemption and any premium), and (b) for issuance, without charge to the
Holder thereof, of a new Bond or Bonds of the same series, of any authorized
denomination or denominations in an aggregate principal amount equal to the
unmatured and unredeemed portion of, and bearing interest at the same rate and
maturing on the same date as, the Bond surrendered.

          Notwithstanding the foregoing, the Trustee shall select Series 1999
Bonds for redemption by lot in such manner as to provide that, following such
selection, each Holder of Series 1999 Bonds shall hold not less than $100,000 in
principal amount of Series 1999 Bonds.

          SECTION 4.03. Issuer's Election to Redeem. Except in the case of
                        ---------------------------
redemption pursuant to any mandatory redemption provisions, Bonds shall be
redeemed only by written notice from the Issuer to the Trustee and the Letter of
Credit Bank, given at the direction of the Borrower, or by written notice from
the Borrower to the Trustee, the Issuer and the Letter of Credit Bank on behalf
of the Issuer. That notice shall specify the redemption date and the principal
amount of each maturity of Bonds to be redeemed, and shall be given at least 45
days prior to the redemption date or such shorter period as shall be acceptable
to the Trustee. Except with the prior written consent of the Letter of Credit
Bank, in the case of any optional redemption of Series 1999 Bonds pursuant to
Section 4.01 of this Indenture, there shall be on deposit Eligible Funds which,
disregarding any other moneys available therefor pursuant to draws on the Letter
of Credit, will be sufficient to redeem at the redemption prices thereof such
Bonds being redeemed, prior to the notice of redemption given pursuant to
Section 4.04 hereof.

          SECTION 4.04. Notice of Redemption. Unless waived in writing by the
                        --------------------
Issuer, by the Letter of Credit Bank, and by any Holder of Bonds to be redeemed,
and except as provided below, official notice of redemption shall be given by
the Registrar on behalf of the Issuer by mailing a copy of an official
redemption notice by first class mail, postage prepaid, to the Holder of each
Bond to be redeemed, at the address of such Holder shown on the Bond Register,
and to the Issuer not less than 30 days nor more than 45 days prior to the date
fixed for redemption.

          All official notices of redemption shall be dated and shall state:

          (1)      the redemption date,

          (2)      the redemption price,

          (3)      if less than all Outstanding Bonds are to be redeemed, the
identification (and, in the case of partial redemption, the respective principal
amounts) of the Bonds to be redeemed,

                                       31
<PAGE>

          (4)      that on the redemption date the redemption price will
become due and payable upon each such Bond or portion thereof called for
redemption, and that interest thereon shall cease to accrue from and after said
date, and

          (5)      the place where such Bonds are to be surrendered for
payment of the redemption price, which place of payment shall be in the
principal office of the Registrar.

          In addition to the foregoing official notice, further notice shall be
given by the Trustee as set out below, but no defect in said further notice nor
any delay in giving such notice nor any failure to give all or any portion of
such further notice shall in any manner defeat the effectiveness of a call for
redemption if the official notice thereof is given as above prescribed.

          1. Each further notice of redemption given hereunder shall contain the
     information required above for an official notice of redemption plus (i)
     the CUSIP numbers of all Bonds being redeemed; (ii) the date of issue of
     the Bonds as originally issued; (iii) the rate of interest borne by each
     Bond being redeemed; (iv) the maturity date of each Bond being redeemed;
     and (v) any other descriptive information needed to identify accurately the
     Bonds being redeemed.

          2. Each further notice of redemption shall be sent at least 30 days
     before the redemption date by registered or certified mail, overnight
     delivery service, telecopy or other means pursuant to their policies and
     procedures to all registered securities depositories then in the business
     of holding substantial amounts of obligations of types comprising the Bonds
     (such depositories now being Depository Trust Company of New York, New
     York, and Philadelphia Depository Trust Company of Philadelphia,
     Pennsylvania) and to one or more national information services that
     disseminate notices of redemption of obligations such as the Bonds.

          3. Upon the payment of the redemption price of Bonds being redeemed,
     each check or other transfer of funds issued for such purpose shall bear
     the CUSIP number identifying, by issue and maturity, the Bonds being
     redeemed with the proceeds of such check or other transfer.

          Failure to duly give official notice of redemption by mail or any
defect therein shall not affect the validity of the proceedings for the
redemption of any Bond with respect to which no such failure or defect has
occurred. Any notice mailed as provided in this Section shall be conclusively
presumed to have been duly given, whether or not the registered Holder receives
notice.

          SECTION 4.05. Payment of Redeemed Bonds. Notice having been mailed in
                        -------------------------
the manner provided in Section 4.04 hereof, the Bonds and portions therefor
called for redemption shall become due and payable on the redemption date, and
upon presentation and surrender thereof at the place or places specified in that
notice, shall be paid at the redemption price, including interest accrued to the
redemption date. The Trustee shall make a drawing under the Letter of Credit
applicable to the series of Bonds to be redeemed to effect any such redemption.
Any redemption premium shall be paid solely from Eligible Funds which are not
proceeds from a draw under the Letter of Credit. Any moneys received by the
Trustee from the Borrower which are to be applied toward the redemption of
Bonds, shall be paid to the Letter of Credit

                                       32
<PAGE>

Bank to reimburse the Letter of Credit Bank for any drawing made under such
Letter of Credit to effect such redemption.

          If money for the redemption of all of the Bonds and portions thereof
to be redeemed, together with interest accrued thereon to the redemption date,
is held by the Trustee or any Paying Agent on the redemption date, so as to be
available therefor on that date and if notice of redemption has been deposited
in the mail as aforesaid, then from and after the redemption date those Bonds
and portions thereof called for redemption shall cease to bear interest and no
longer shall be considered to be outstanding hereunder. If those moneys shall
not be so available on the redemption date, or that notice shall not have been
deposited in the mail as aforesaid, those Bonds and portions thereof shall
continue to bear interest, until they are paid, at the same rate as they would
have borne had they not been called for redemption.

          All moneys deposited in the Bond Fund and held by the Trustee or a
Paying Agent for the redemption of particular Bonds shall be held in trust for
the account of the Holders thereof and shall be paid to them, respectively, upon
presentation and surrender of those Bonds.

          SECTION 4.06. Variation of Redemption Provisions. The provisions of
                        ----------------------------------
this Article IV, insofar as they apply to the issuance of any series of
Additional Bonds, may be varied by the Supplemental Indenture providing for that
series.

                              (End of Article IV)

                                       33
<PAGE>

                                   ARTICLE V

                            PROVISIONS AS TO FUNDS,
                        PAYMENTS, PROJECT AND AGREEMENT

          SECTION 5.01. Creation of Project Fund. There is created by the Issuer
                        ------------------------
and ordered maintained as a separate deposit account (except when invested as
provided hereinafter) in the custody of the Trustee, a trust fund designated
"Business Finance Authority of the State of New Hampshire - Apex
Telecommunications Manufacturing, Inc. Project Fund". Unless otherwise set forth
in the Bond Legislation, there shall be deposited in the Project Fund the
proceeds of the sale of the Bonds, other than any proceeds representing accrued
interest which shall be deposited in the Bond Fund pursuant to Section 5.04
hereof.

          If the unexpended proceeds of a prior issue of Bonds remain in the
Project Fund upon the issuance of any Additional Bonds, the Trustee shall
establish a separate subaccount within the Project Fund, for accounting
purposes, for the deposit of the proceeds of the issue of Additional Bonds in
accordance with this Section. Pending disbursement pursuant to the Agreement,
the moneys and Eligible Investments to the credit of the Project Fund shall
constitute a part of the Revenues assigned to the Trustee as security for the
paying of the Bond Service Charges.

          SECTION 5.02. Disbursements from and Records of Project Fund. Moneys
                        ----------------------------------------------
in the Project Fund shall be disbursed in accordance with the Agreement. The
Trustee shall cause to be kept and maintained adequate records pertaining to the
Project Fund and all disbursements therefrom. If requested by the Issuer, the
Letter of Credit Bank or the Borrower, after the Project has been completed and
a certificate of payment of all costs is filed as provided in Section 5.03
hereof, the Trustee shall file copies of the records pertaining to the Project
Fund and disbursements therefrom with the Issuer, the Letter of Credit Bank and
Borrower. Unless otherwise provided in the applicable Bond Legislation or
Supplemental Indenture, this Section shall apply to the disbursement of the
proceeds of any issue of Additional Bonds.

          SECTION 5.03. Completion of the Project. The completion of the Project
                        -------------------------
and payment of all costs and expenses incident thereto shall be evidenced by the
filing with the Trustee of:

                    (i) the certificate of the Authorized Borrower
          Representative required by Section 3.6 of the Agreement, and

                    (ii) a certificate signed by the Authorized Borrower
          Representative and approved by the Letter of Credit Bank stating that
          all obligations and costs in connection with the Project and payable
          out of the Project Fund have been paid and discharged, except for
          amounts retained by the Trustee as provided under the Agreement for
          the payment of costs of the Project not then due and payable.

As soon as practicable after the filing with the Trustee of the certificate to
which reference is made in clause (ii) above, any balance remaining in the
Project Fund (other than the amounts

                                       34
<PAGE>

retained by the Trustee as described in clause (ii) above) shall be deposited or
applied in accordance with the direction of the Authorized Borrower
Representative and approval by the Letter of Credit Bank pursuant to Section 3.4
of the Agreement. Unless otherwise provided in the applicable Bond Legislation
or Supplemental Indenture, this Section shall apply to any additional property
financed with the proceeds of any issue of Additional Bonds.

          SECTION 5.04. Creation of Bond Fund; Letter of Credit. There is
                        ---------------------------------------
created by the Issuer and ordered maintained as a separate deposit account
(except when invested as hereinafter set forth) in the custody of the Trustee a
trust fund to be designated "Business Finance Authority of the State of New
Hampshire - Apex Telecommunications Manufacturing, Inc. Bond Fund". Unless
otherwise set forth in the applicable Bond Legislation or Supplemental Indenture
relating to the issuance of a series of Additional Bonds, there shall be
deposited in the Bond Fund (and credited, if required by this Indenture or the
Agreement, to appropriate accounts therein), from the proceeds of the sale of
the Bonds, any accrued interest paid by the Original Purchaser.

          The Trustee shall deposit in the Bond Fund upon receipt all Revenues,
including all moneys received upon drawings made under the Letter of Credit, and
any other amounts which, under the terms of this Indenture, the Agreement or the
Letter of Credit are to be applied to the payment of Bond Service Charges.
Except as provided herein, the Bond Fund (and accounts therein for which
provision is made herein or in the Agreement) and the moneys and Eligible
Investments therein shall be used solely and exclusively for the payment of Bond
Service Charges as they fall due at stated maturity, or by redemption or
pursuant to any mandatory sinking fund requirements or upon acceleration, all as
provided herein and in the Agreement.

          The Trustee shall establish separate accounts within the Bond Fund for
each separate series of Bonds. The Trustee shall establish separate subaccounts
within each separate series account in the Bond Fund for each source of deposit
(including any investment income thereon) made into the Bond Fund so that the
Trustee may at all times ascertain the date of deposit, the amounts, and the
source of the funds in each subaccount.

          Moneys in the Bond Fund shall be used to pay Bond Service Charges with
respect to the Series 1999 Bonds and for the redemption of Series 1999 Bonds
prior to maturity and as otherwise provided in this Indenture only in the
following order:

          FIRST: Amounts drawn by the Trustee under the Letter of Credit;

          SECOND: Any Eligible Funds on deposit in the Bond Fund; and

          THIRD: Any other amounts available in the Bond Fund.

          Notwithstanding the foregoing, the Trustee shall use the proceeds of
the remarketing of the Series 1999 Bonds to purchase Series 1999 Bonds tendered
for purchase to the extent such proceeds are available, and only when such
proceeds are exhausted, shall it draw under the Letter of Credit to pay the
amount of the shortfall, if any.

          The Trustee shall draw on the Letter of Credit pursuant to its terms,
in the amounts and at the times necessary to pay principal of and interest on
the Series 1999 Bonds

                                       35
<PAGE>

pursuant to this Section 5.04. Any redemption premium shall be paid solely from
Eligible Funds which are not proceeds from a draw under the Letter of Credit.

          The Trustee shall draw upon the Letter of Credit in accordance with
the terms thereof under the following circumstances:

          (a) On or before 10:00 a.m., local time at the principal corporate
     trust office of the Trustee, on the Business Day immediately preceding any
     Interest Payment Date (or any date set for a redemption of Series 1999
     Bonds which is not an Interest Payment Date) and on or before 10:00 a.m.,
     local time at the principal corporate trust office of the Trustee, on the
     first Business Day prior to each Bond Purchase Date, the Trustee shall
     determine the amount necessary to make all required payments of principal
     and interest on the Series 1999 Bonds or purchase price payments (after
     first applying the proceeds of the remarketing of such Bonds received by
     the Trustee prior to making such draw) on the next succeeding Interest
     Payment Date, other redemption date or such Bond Purchase Date, and shall
     present a sight draft to the Letter of Credit Bank (together with the
     required certificates under the Letter of Credit) in such amount, so as to
     permit the timely transfer of funds from the Letter of Credit Bank to the
     Trustee for payment of the principal of and interest on the Series 1999
     Bonds when due, whether at maturity or upon prior redemption or
     acceleration or otherwise, or the payment of the purchase price of the
     Series 1999 Bonds when due on the applicable Bond Purchase Date.

          (b) Upon acceleration of the Series 1999 Bonds upon the occurrence of
     an Event of Default under Section 7.01 hereof, the Trustee shall, on the
     date of declaration of the acceleration of the Series 1999 Bonds, present a
     draft to the Letter of Credit Bank (together with required certificates
     under the Letter of Credit) for payment of the entire amount due under
     Section 7.03 hereof with respect to the Series 1999 Bonds, less the amount
     on deposit in the Bond Fund resulting from draws on the Letter of Credit.

          The Trustee shall promptly orally notify the Borrower, confirmed in
writing, if the Letter of Credit Bank has not transferred funds in accordance
with the Letter of Credit upon the presentment of any such draft.

          In calculating the amount to be drawn on the Letter of Credit for the
payment of principal of and interest on the Series 1999 Bonds, whether at
maturity or upon redemption or acceleration, the Trustee shall not take into
account the receipt or potential receipt of funds from the Borrower under the
Agreement, or the existence of any other moneys in the Bond Fund (other than
accrued interest, if any, received at the time of the issuance and delivery of
the Series 1999 Bonds), but shall draw on the Letter of Credit in accordance
with its terms for the full amount of principal and interest coming due on the
Series 1999 Bonds. In calculating the amount to be drawn on the Letter of Credit
for the purchase of Series 1999 Bonds, the Trustee shall take into account the
receipt of funds from the Remarketing Agent with respect to the remarketing of
such Series 1999 Bonds or otherwise, and shall draw on the Letter of Credit only
for the amount equal to the difference between the purchase price of Series 1999
Bonds duly tendered under Section 2.05 hereof and the amount of funds received
from the Remarketing Agent with respect to the remarketing of such Series 1999
Bonds.

                                       36
<PAGE>

          Upon receipt of such moneys from the Letter of Credit Bank, the
Trustee shall deposit the amount representing a draw on the Letter of Credit for
the payment of principal and interest on the Series 1999 Bonds in a separate
account in the Bond Fund and apply the same to the payment of such principal and
interest when due on the Series 1999 Bonds, shall deposit the amount
representing a draw on the Letter of Credit for the purchase of Series 1999
Bonds and the funds received from the Remarketing Agent in a separate account in
the Bond Fund and disburse said amount to the tendering Holders of Series 1999
Bonds being purchased and, so long as there does not exist an Event of Default
described in Section 7.01 (g) or (h) herein, and subject to the provisions of
this Section, by wire transfer shall pay, on behalf of the Borrower, but only
from and to the extent of Loan Payments or any other moneys available in the
Bond Fund, any amounts due and payable to the Letter of Credit Bank under the
Letter of Credit Agreement, including without limitation any amounts due and
payable for any drawing made on the Letter of Credit, and any balance shall be
paid to the Borrower.

          The Trustee shall transmit to any Paying Agent, as appropriate, from
moneys in the Bond Fund applicable thereto, amounts sufficient to make timely
payments of principal of, premium, if any, and any interest on the Series 1999
Bonds to be made by those Paying Agents and then due and payable. To the extent
that the amount needed by any Paying Agent is not sufficiently predictable, the
Trustee may make any credit arrangements with that Paying Agent which will
permit those payments to be made. The Trustee shall cause withdrawal of moneys
from the Bond Fund which are available for the purpose of paying, and are
sufficient to pay, the principal of and any premium on the Series 1999 Bonds as
they become due and payable (whether at stated maturity, by redemption or
pursuant to any mandatory sinking fund requirements), for the purposes of paying
or transferring moneys to the Paying Agents which are necessary to pay such
principal and premium.

          SECTION 5.05. Investment of Bond Fund, Project Fund and Rebate Fund.
                        -----------------------------------------------------
Except as hereinafter provided, moneys in the Bond Fund, the Project Fund and
the Rebate Fund shall be invested and reinvested by the Trustee in Eligible
Investments at the oral (immediately confirmed in writing) or written direction
of the Authorized Borrower Representative. Investments of moneys in the Bond
Fund shall mature or be redeemable without penalty at the option of the Trustee
at the times and in the amounts necessary to provide moneys to pay Bond Service
Charges as they become due at stated maturity, by redemption or pursuant to any
mandatory sinking fund requirements. Each investment of moneys in the Project
Fund shall mature or be redeemable without penalty at such time as may be
necessary to make payments when necessary from the Project Fund.

          Subject to any directions from the Authorized Borrower Representative
with respect thereto, from time to time, the Trustee may sell Project Fund,
Rebate Fund and Bond Fund investments and reinvest the proceeds therefrom in
Eligible Investments maturing or redeemable as aforesaid. Any of those
investments may be purchased from or sold to the Trustee, the Registrar, an
Authenticating Agent or a Paying Agent, or any bank, trust company or savings
and loan association affiliated with any of the foregoing. The Trustee shall
sell or redeem investments credited to the Bond Fund to produce sufficient
moneys applicable hereunder to and at the times required for the purposes of
paying Bond Service Charges when due as aforesaid, and shall do so without
necessity for any order on behalf of the Issuer and without restriction by
reason of any order. An investment made from moneys credited to the Bond Fund,
the Rebate Fund or the Project Fund shall constitute part of that respective
Fund, and

                                       37
<PAGE>

each respective Fund shall be credited with all proceeds of sale and income from
investment of moneys credited thereto. For purposes of this Indenture, those
investments shall be valued at face amount or market value, whichever is less.

          Moneys drawn on the Letter of Credit shall not be invested, but shall
be held in such account pending application pursuant to the terms of Section
5.04 hereof.

          SECTION 5.06. Moneys to be Held in Trust. Except where moneys have
                        --------------------------
been deposited with or paid to the Trustee pursuant to an instrument restricting
their application to particular Bonds, all moneys required or permitted to be
deposited with or paid to the Trustee or any Paying Agent under any provision of
this Indenture, the Agreement, or the Letter of Credit, and any investments
thereof, shall be held by the Trustee or that Paying Agent in trust. Except (i)
for moneys deposited with or paid to the Trustee or any Paying Agent for the
redemption of Bonds, notice of the redemption of which shall have been duly
given and (ii) for moneys held by the Trustee pursuant to Section 5.07 hereof
all moneys described in the preceding sentence held by the Trustee or any Paying
Agent shall be subject to the lien hereof while so held.

          SECTION 5.07. Nonpresentment of Bonds. In the event that any Bond
                        -----------------------
shall not be presented for payment when the principal thereof becomes due in
whole or in part, either at stated maturity, by redemption or pursuant to any
mandatory sinking fund requirements, or a check or draft for interest is
uncashed, if moneys sufficient to pay the principal then due of that Bond or of
such check or draft shall have been made available to the Trustee for the
benefit of its Holder, all liability of the Issuer to that Holder for such
payment of the principal then due of the Bond or of such check or draft
thereupon shall cease and be discharged completely. Thereupon, it shall be the
duty of the Trustee to hold those moneys, without liability for interest
thereon, in a separate account in the Bond Fund for the exclusive benefit of the
Holder, who shall be restricted thereafter exclusively to those moneys for any
claim of whatever nature on its part under this Indenture or on, or with respect
to, the principal then due of that Bond or of such check or draft.

          Any of those moneys which shall be so held by the Trustee, and which
remain unclaimed by the Holder of a Bond not presented for payment or check or
draft not cashed for a period of four years after the due date thereof, shall be
paid to the Borrower or the Letter of Credit Bank as provided in Section 8.5 of
the Agreement free of any trust or lien. Thereafter, the Holder of that Bond
shall look only to the Borrower for payment and then only to the amounts so
received by the Borrower or the Letter of Credit Bank without any interest
thereon, and the Trustee shall not have any responsibility with respect to those
moneys.

          SECTION 5.08. Repayment to the Borrower or the Letter of Credit Bank
                        ------------------------------------------------------
from the Bond Fund. Except as provided in Section 5.07 hereof, any amounts
------------------
remaining in the Bond Fund (i) after all of the outstanding Bonds shall be
deemed paid and discharged under the provisions of this Indenture, and (ii)
after payment of all fees, charges and expenses of the Trustee, the Registrar
and any Paying Agents or Authenticating Agents and of all other amounts required
to be paid under this Indenture and the Agreement, shall be paid as soon as
practicable to the Borrower or the Letter of Credit Bank as provided in Section
8.5 of the Agreement to the extent that those amounts are in excess of those
necessary to effect the payment and discharge of the outstanding Bonds.
Notwithstanding any other provision of this Section 5.08, amounts drawn by the
Trustee under the Letter of Credit shall be applied only to the payment of the
principal of and interest on the series of Bonds it secures, and any such
amounts not so applied

                                       38
<PAGE>

shall be returned by the Trustee to the Letter of Credit Bank after all of the
Outstanding Bonds of such series shall be deemed paid and discharged under the
terms of this Indenture.

          SECTION 5.09. Extension of Letter of Credit; Alternate Letter of
                        --------------------------------------------------
Credit. The Letter of Credit shall expire in accordance with its terms.
------

          The Letter of Credit Bank may provide for an extension of the
expiration date of the applicable Letter of Credit to a date not earlier than
one year from the Letter of Credit Termination Date being extended or the
maturity date of the Series 1999 Bonds, whichever is earlier, or the Borrower at
its option may provide, not less than sixty (60) days prior to the Interest
Payment Date next preceding the Letter of Credit Termination Date, for the
delivery to the Trustee of an Alternate Letter of Credit having a term
commencing not later than the Letter of Credit Termination Date of the Letter of
Credit to be replaced (the "Replacement Date") and terminating on a date which
shall be the shorter of (i) not less than one year from the Letter of Credit
Termination Date of the Letter of Credit to be replaced, or (ii) the final
maturity date of the Series 1999 Bonds. Prior to the replacement of such Letter
of Credit with an Alternate Letter of Credit, the following conditions shall
have been met: (i) the Trustee shall have received from the Borrower written
notice of such replacement, including notice of the form of Alternate Letter of
Credit and the issuer thereof, not less than sixty (60) days prior to the
Interest Payment Date next preceding the Letter of Credit Termination Date; and
(ii) the Trustee shall have received the following not less than sixty (60) days
prior to the Interest Payment Date next preceding the Letter of Credit
Termination Date (A) an opinion of counsel for the issuer of the Alternate
Letter of Credit that it constitutes a legal, valid and binding obligation of
the issuer in accordance with its terms and that payments thereunder will not
constitute voidable preferences, and (B) an opinion of Bond Counsel that such
replacement will not cause interest on the Series 1999 Bonds to become included
in gross income for federal income tax purposes. If the Letter of Credit is so
extended to a date not earlier than one year from the Letter of Credit
Termination Date being extended or the maturity date of the Series 1999 Bonds,
whichever is earlier, or if the Borrower so provides such Alternate Letter of
Credit complying with the requirements of this paragraph, the mandatory
redemption pursuant to the terms of Section 4.01(b) of this Indenture shall not
occur with respect to such Interest Payment Date. However, if the Borrower shall
provide such Alternate Letter of Credit, then at least 30 days prior to the
Replacement Date, the Trustee shall notify the Holders of all outstanding Series
1999 Bonds by telephone, immediately confirmed by first class mail, that upon
the Replacement Date, the Letter of Credit will be replaced by the Alternate
Letter of Credit, the provider of which Alternate Letter of Credit shall be
specified, and that all such Series 1999 Bonds shall be subject to a mandatory
tender pursuant to Section 2.06.B. hereof, subject to the right of Holders to
affirmatively elect to waive the mandatory tender and retain their Series 1999
Bonds.

                              (End of Article V)

                                       39
<PAGE>

                                  ARTICLE VI

                    THE TRUSTEE, REGISTRAR, PAYING AGENTS,
                  AUTHENTICATING AGENTS AND REMARKETING AGENT

          SECTION 6.01. Trustee's Acceptance and Responsibilities. The Trustee
                        -----------------------------------------
accepts the trusts imposed upon it by this Indenture, and agrees to observe and
perform those trusts, but only upon and subject to the terms and conditions set
forth in this Article, to all of which the parties hereto and the Holders agree.

          (a)  Prior to the occurrence of a default or an Event of Default (as
     defined in Section 7.01 hereof) of which the Trustee has been notified, as
     provided in paragraph (f) of Section 6.02 hereof, or of which by that
     paragraph the Trustee is deemed to have notice, and after the cure or
     waiver of all defaults or Events of Default which may have occurred,

                    (i)  the Trustee undertakes to perform only those duties and
          obligations which are set forth specifically in this Indenture, and no
          duties or obligations shall be implied to the Trustee;

                    (ii) in the absence of bad faith on its part, the Trustee
          may rely conclusively, as to the truth of the statements and the
          correctness of the opinions expressed therein, upon certificates or
          opinions furnished to the Trustee and conforming to the requirements
          of this Indenture; but in the case of any such certificates or
          opinions which by any provision hereof are required specifically to be
          furnished to the Trustee, the Trustee shall be under a duty to examine
          the same to determine whether or not they conform to the requirements
          of this Indenture.

          (b)  In case a default or an Event of Default has occurred and is
     continuing hereunder (of which the Trustee has been notified, or is deemed
     to have notice), the Trustee shall exercise those rights and powers vested
     in it by this Indenture and shall use the same degree of care and skill in
     their exercise, as a prudent man would exercise or use under the
     circumstances in the conduct of his own affairs.

          (c)  No provisions of this Indenture shall be construed to relieve the
     Trustee from liability for its own negligent action, its own negligent
     failure to act, or its own willful misconduct, except that

                    (i)  this Subsection shall not be construed to affect the
          limitation of the Trustee's duties and obligations provided in
          subparagraph (a)(i) of this Section or the Trustee's right to rely on
          the truth of statements and the correctness of opinions as provided in
          subparagraph (a)(ii) of this Section;

                    (ii) the Trustee shall not be liable for any error of
          judgment made in good faith by any one of its officers, unless it
          shall be established that the Trustee was negligent in ascertaining
          the pertinent facts;

                                       40
<PAGE>

                    (iii) the Trustee shall not be liable with respect to any
          action taken or omitted to be taken by it in good faith in accordance
          with the direction of the Holders of not less than a majority in
          principal amount of the Bonds then outstanding relating to the time,
          method and place of conducting any proceeding for any remedy available
          to the Trustee, or exercising any trust or power conferred upon the
          Trustee, under this Indenture; and

                    (iv)  no provision of this Indenture shall require the
          Trustee to expend or risk its own funds or otherwise incur any
          financial liability in the performance of any of its duties hereunder,
          or in the exercise of any of its rights or powers if it shall have
          reasonable grounds for believing that payment of such funds or
          adequate indemnity against such risk or liability is not reasonably
          assured to it.

          (d)  Whether or not therein expressly so provided, every provision of
     this Indenture relating to the conduct or affecting the liability of or
     affording protection to the Trustee shall be subject to the provisions of
     this Section 6.01.

          SECTION 6.02. Certain Rights and Obligations of the Trustee. Except as
                        ---------------------------------------------
otherwise provided in Section 6.01 hereof:

          (a)  The Trustee (i) may execute any of the trusts or powers hereof
     and perform any of its duties by or through attorneys, agents, receivers or
     employees (but shall be answerable therefor only in accordance with the
     standard specified above), (ii) shall be entitled to the advice of counsel
     concerning all matters of trusts hereof and duties hereunder, and (iii) may
     pay reasonable compensation in all cases to all of those attorneys, agents,
     receivers and employees reasonably employed by it in connection with the
     trusts hereof. The Trustee may act upon the opinion or advice of any
     attorney (who may be the attorney or attorneys for the Issuer or the
     Borrower) approved by the Trustee in the exercise of reasonable care. The
     Trustee shall not be responsible for any loss or damage resulting from any
     action taken or omitted to be taken in good faith in reliance upon that
     opinion or advice .

          (b)  Except for its certificate of authentication on the Bonds, the
     Trustee shall not be responsible for:

                    (i)   any recital in this Indenture, the Bonds or any other
          related document, statement or certificate ,

                    (ii)  the validity, priority, recording, re-recording,
          filing or re-filing of this Indenture or any Supplemental Indenture,

                    (iii) any instrument or document of further assurance or
          collateral assignment,

                    (iv)  insurance of the Project or collection of insurance
          moneys,

                                       41
<PAGE>

                    (v)   the validity of the execution by the Issuer of this
          Indenture, any Supplemental Indenture or instruments or documents of
          further assurance,

                    (vi)  the sufficiency of the security for the Bonds issued
          hereunder or intended to be secured hereby, or

                    (vii) the value of or title to the Project.

     The Trustee shall not be bound to ascertain or inquire as to the observance
     or performance of any covenants, agreements, or obligations on the part of
     the Issuer or the Borrower under the Agreement except as set forth
     hereinafter; but the Trustee may require of the Issuer or the Borrower full
     information and advice as to the observance or performance of those
     covenants, agreements, and obligations. Except as otherwise provided in
     Section 7.04 hereof, the Trustee shall have no obligation to observe or
     perform any of the duties of the Issuer under the Agreement.

          (c)  The Trustee shall not be accountable for the application by the
     Borrower or any other Person of the proceeds of any Bonds authenticated or
     delivered hereunder.

          (d)  The Trustee shall be protected, in the absence of bad faith on
     its part, in acting upon any notice, request, consent, certificate, order,
     affidavit, letter, telegram, or other paper or document reasonably believed
     by it to be genuine and correct and to have been signed or sent by the
     proper Person or Persons. Any action taken by the Trustee pursuant to this
     Indenture upon the request or authority or consent of any Person who is the
     Holder for any Bonds at the time of making the request or giving the
     authority or consent, shall be conclusive and binding upon all future
     Holders of the same Bond and of Bonds issued in exchange therefor or in
     place thereof.

          (e)  As to the existence or nonexistence of any fact for which the
     Issuer, the Letter of Credit Bank or the Borrower may be responsible or as
     to the sufficiency or validity of any instrument, document, report, paper
     or proceeding, the Trustee, in the absence of bad faith on its part, shall
     be entitled to rely upon a certificate signed on behalf of the Issuer, the
     Letter of Credit Bank or the Borrower by an authorized officer or agent
     thereof as sufficient evidence of the facts recited therein. Prior to the
     occurrence of a default or Event of Default hereunder of which the Trustee
     has been notified, as provided in paragraph (f) of this Section, or of
     which by that paragraph the Trustee is deemed to have notice, the Trustee
     may accept a similar certificate to the effect that any particular dealing,
     transaction or action is necessary or expedient; provided, that the Trustee
     in its discretion may require and obtain any further evidence which it
     deems to be necessary or advisable; and, provided further, that the Trustee
     shall not be bound to secure any further evidence. The Trustee may accept a
     certificate of the officer, or an assistant thereto, having charge of the
     appropriate records, to the effect that resolutions have been adopted by
     the Issuing Authority in the form recited in that certificate, as
     conclusive evidence that such resolutions have been duly adopted and are in
     full force and effect.

          (f)  The Trustee shall not be required to take notice, and shall not
     be deemed to have notice, of any default or Event of Default hereunder,
     except Events of Default described in paragraph (a), (b), (c) and (g) of
     Section 7.01 hereof, unless the Trustee shall

                                       42
<PAGE>

     be notified specifically of the default or Event of Default in a written
     instrument or document delivered to it by the Issuer, the Letter of Credit
     Bank or by the Holders of at least ten percent of the aggregate principal
     amount of the Bonds then outstanding. In the absence of delivery of a
     notice satisfying those requirements, the Trustee may assume conclusively
     that there is no default or Event of Default, except as noted above.

          (g)  At any reasonable time, the Trustee and its duly authorized
     agents, attorneys, experts, engineers, accountants and representatives (i)
     may inspect and copy fully all books, papers and records of the Issuer
     pertaining to the Project, the Letter of Credit and the Bonds, and (ii) may
     take any memoranda from and in regard thereto and make copies thereof as
     the Trustee may desire.

          (h)  The Trustee shall not be required to give any bond or surety with
     respect to the execution of these trusts and powers or otherwise in respect
     of the premises.

          (i)  Notwithstanding anything contained elsewhere in this Indenture,
     except in connection with an Event of Default under Section 7.01(f) hereof,
     the Trustee may demand any showings, certificates, reports, opinions,
     appraisals and other information, and any corporate action and evidence
     thereof, in addition to that required by the terms hereof, as a condition
     to the authentication of any Bonds or the taking of any action whatsoever
     within the purview of this Indenture, if the Trustee deems it to be
     desirable for the purpose of establishing the right of the Issuer to the
     authentication of any Bonds or the right of any Person to the taking of any
     other action by the Trustee; provided, that the Trustee shall not be
     required to make that demand.

          (j)  Before taking action hereunder pursuant to Section 6.04 or
     Article VII hereof (with the exception of any action required to be taken
     under Section 7.02 or 7.03 hereof and except with respect to drawings made
     under the Letter of Credit), the Trustee may require that a satisfactory
     indemnity bond be furnished to it for the reimbursement of all expenses
     which it may incur and to protect it against all liability by reason of any
     action so taken, except liability which is adjudicated to have resulted
     from its negligence or willful default. The Trustee may take action without
     that indemnity, and in that case, the Borrower shall reimburse the Trustee
     for all of the Trustee's expenses pursuant to Section 6.03 hereof.

          (k)  Unless otherwise provided herein, all moneys received by the
     Trustee under this Indenture shall be held in trust for the purpose for
     which those moneys were received, until those moneys are used, applied or
     invested as provided herein; provided, that those moneys need not be
     segregated from other moneys, except to the extent required by this
     Indenture or by law. The Trustee shall not have any liability for interest
     on any moneys received hereunder, except to the extent expressly provided
     herein or otherwise agreed to in writing with the Issuer or the Borrower.

          (l)  Any resolutions by the Issuer, and any opinions, certificates and
     other instruments and documents for which provision is made in this
     Indenture, may be accepted by the Trustee, in the absence of bad faith on
     its part, as conclusive evidence of the facts and conclusions stated
     therein and shall be full warrant, protection and authority to the Trustee
     for its actions taken hereunder.

                                       43
<PAGE>

          SECTION 6.03. Fees, Charges and Expenses of Trustee, Registrar, Paying
                        --------------------------------------------------------
Agents and Authenticating Agents. The Trustee, the Registrar and any Paying
--------------------------------
Agent or Authenticating Agents shall be entitled to payment or reimbursement by
the Borrower, as provided in the Agreement, for reasonable fees for its Ordinary
Services rendered hereunder and for all advances, counsel fees and other
Ordinary Expenses reasonably and necessarily paid or incurred by them in
connection with the provision of Ordinary Services. For purposes hereof, fees
for Ordinary Services provided for by their respective standard fee schedules
shall be considered reasonable. In the event that it should become necessary for
any of them to perform Extraordinary Services, they shall be entitled to
reasonable extra compensation therefor and to reimbursement for reasonable and
necessary Extraordinary Expenses incurred in connection therewith.

          Without creating a default or an Event of Default hereunder, however,
the Borrower may contest in good faith the necessity for any Extraordinary
Service and Extraordinary Expense and the reasonableness of any fee, charge or
expense, provided that any such contest shall be initiated by the Borrower
within ten days after the Borrower has notice of such Extraordinary Services or
Extraordinary Expenses or else no contest shall be allowed.

          The Trustee, the Registrar and any Paying Agents or Authenticating
Agents shall not be entitled to compensation or reimbursement for Extraordinary
Services or Extraordinary Expenses occasioned by their negligence or willful
misconduct. The payments to which the Trustee, the Registrar and any Paying
Agents or Authenticating Agents are entitled hereunder shall be made only from
(i) the applicable Project Fund, or (ii) from other moneys available therefor.
Any amounts payable to the Trustee, the Registrar or any Paying Agent or
Authenticating Agent pursuant to this Section 6.03 shall be payable upon demand
and shall bear interest from the date of demand therefor at the Interest Rate
for Advances.

          SECTION 6.04. Intervention by Trustee. The Trustee may intervene on
                        -----------------------
behalf of the Holders, and shall intervene if requested to do so in writing by
the Holders of at least twenty-five percent of the aggregate principal amount of
Bonds then outstanding, in any judicial proceeding to which the Issuer or the
Borrower is a party and which in the opinion of the Trustee and its counsel has
a substantial bearing on the interest of Holders of the Bonds. The rights and
obligations of the Trustee under this Section are subject to the approval of
that intervention by a court of competent jurisdiction. The Trustee may require
that a satisfactory indemnity bond be provided to it in accordance with Sections
6.01 and 6.02 hereof before it takes action under this Section.

          SECTION 6.05. Successor Trustee. Anything herein to the contrary
                        -----------------
notwithstanding,

          (a)  any corporation or association (i) into which the Trustee may be
     converted or merged, (ii) with which the Trustee or any successor to it may
     be consolidated, or (iii) to which it may sell or transfer it assets and
     trust business as a whole or substantially as a whole, or any corporation
     or association resulting from any such conversion, merger, consolidation,
     sale or transfer, ipso facto, shall be and become successor Trustee
                       ---- -----
     hereunder and shall be vested with all of the title to the whole property
     or trust estate hereunder; and

                                       44
<PAGE>

          (b)  that corporation or association shall be vested further, as was
     its predecessor, with each and every trust, property, remedy, power, right,
     duty, obligation, discretion, privilege, claim, demand, cause of action,
     immunity, estate, title, interest and lien expressed or intended by this
     Indenture to be exercised by, vested in or conveyed to the Trustee, without
     the execution or filing of any instrument or document or any further act on
     the part of any of the parties hereto.

Any successor Trustee, however, (i) shall be a trust company or a bank having
the powers of a trust company, (ii) shall be in good standing within the State,
(iii) shall be duly authorized to exercise trust powers within the State, and
(iv) shall have a reported capital and surplus of not less than $50,000,000.

          SECTION 6.06. Appointment of Co-Trustee. It is the purpose of this
                        -------------------------
Indenture that there shall be no violation of any law of any jurisdiction
(including without limitation, the laws of the State) denying or restricting the
right of banks or trust companies to transact business as trustees in that
jurisdiction. It is recognized that, (a) if there is litigation under the
Indenture or other instruments or documents relating to the Bonds and the
Project, and in particular, in case of the enforcement hereof or thereof upon a
default or an Event of Default, or (b) if the Trustee should deem that, by
reason of any present or future law of any jurisdiction, it may not (i) exercise
any of the powers, rights or remedies granted herein to the Trustee, (ii) hold
title to the properties, in trust, as granted herein, or (iii) take any action
which may be desirable or necessary in connection therewith, it may be necessary
that the Trustee appoint an individual or additional institution as a co-
Trustee. The following provisions of this Section are adapted to these ends.

          In the event that the Trustee appoints an individual or additional
institution as a co-Trustee, each and every trust, property, remedy, power,
right, duty, obligation, discretion, privilege, claim, demand, cause of action,
immunity, estate, title, interest and lien expressed or intended by this
Indenture to be exercised by, vested in or conveyed to the Trustee shall be
exercisable by, vest in and be conveyed to that co-Trustee, but only to the
extent necessary for it to be so vested and conveyed and to enable that co-
Trustee to exercise it. Every covenant, agreement and obligation necessary to
the exercise thereof by that co-Trustee shall run to and be enforceable by it.

          Should any instrument or document in writing from the Issuer
reasonably be required by the co-Trustee so appointed by the Trustee for vesting
and conveying more fully and certainly in and to that co-Trustee those trusts,
properties, remedies, powers, rights, duties, obligations, discretions,
privileges, claims, demands, causes of action, immunities, estates, titles,
interests and liens, that instrument or document shall be executed, acknowledged
and delivered, but not prepared, by the Issuer. In case any co-Trustee or a
successor to it shall die, become incapable of acting, resign or be removed, all
of the trusts, properties, remedies, powers, rights, duties, obligations,
discretions, privileges, claims, demands, causes of action, immunities, estates,
titles, interests and liens of the co-Trustee shall be exercised by, vest in and
be conveyed to the Trustee, to the extent permitted by law, until the
appointment of a successor to the co-Trustee.

          SECTION 6.07. Resignation by the Trustee. The Trustee may resign at
                        --------------------------
any time from the trusts created hereby by giving written notice of the
resignation to the Issuer, the Borrower, the Letter of Credit Bank, the
Remarketing Agent, the Registrar, any Paying Agents

                                       45
<PAGE>

and Authenticating Agents and the Original Purchaser of each series of Bonds
then outstanding and by mailing written notice of the resignation to the Holders
as their names and addresses appear on the Register at the close of business
fifteen days prior to the mailing. The resignation shall take effect upon the
appointment of a successor Trustee.

          SECTION 6.08. Removal of the Trustee. The Trustee may be removed at
                        ----------------------
any time by an instrument or document or concurrent instruments or documents in
writing delivered to the Trustee, with copies thereof mailed to the Issuer, the
Registrar, the Letter of Credit Bank, the Remarketing Agent, any Paying Agents,
and Authenticating Agents and the Borrower, and signed by or on behalf of the
Holders of not less than a majority in aggregate principal amount of the Bonds
then outstanding.

          The Trustee also may be removed at any time for any breach of trust or
for acting or proceeding in violation of, or for failing to act or proceed in
accordance with, any provision of this Indenture with respect to the duties and
obligations of the Trustee by any court of competent jurisdiction upon the
application of the Issuer or the Holders of not less than 25% in aggregate
principal amount of the Bonds then outstanding under this Indenture.

          Any removal of the Trustee shall take effect upon the appointment of a
successor Trustee by the Issuer, the Holders or the court, respectively.

          SECTION 6.09. Appointment of Successor Trustee. If (i) the Trustee
                        --------------------------------
shall resign, shall be removed, shall be dissolved, or shall become otherwise
incapable of acting hereunder, (ii) the Trustee shall be taken under the control
of any public officer or officers, or (iii) a receiver shall be appointed for
the Trustee by a court, then a successor Trustee shall be appointed by the
Borrower; provided, that if a successor Trustee is not so appointed within ten
days after (a) a notice of resignation or an instrument or document of removal
is received by the Issuer, as provided in Sections 6.07 and 6.08 hereof,
respectively, or (b) the Trustee is dissolved, taken under control, becomes
otherwise incapable of acting or a receiver is appointed, in each case, as
provided above, then, so long as the Borrower shall not have appointed a
successor Trustee, the Holders of a majority in aggregate principal amount of
Bonds then outstanding may designate a successor Trustee by an instrument or
document or concurrent instruments or documents in writing signed by or on
behalf of those Holders. If no appointment of a successor Trustee shall be made
pursuant to the foregoing provisions of this Section, the Holder of any Bond
outstanding hereunder or any retiring Trustee may apply to any court of
competent jurisdiction to appoint a successor Trustee. Such court may thereupon,
after such notice, if any, as such court may deem proper and prescribe, appoint
a successor Trustee.

          Every successor Trustee appointed pursuant to this Section (i) shall
be a trust company or a bank having the powers of a trust company (ii) shall be
in good standing within the State, (iii) shall be duly authorized to exercise
trust powers within the State, (iv) shall have a reported capital and surplus of
not less than $50,000,000 and (v) shall be willing to accept the trusteeship
under the terms and conditions of this Indenture.

          Every successor Trustee appointed hereunder shall execute and
acknowledge, and shall deliver to its predecessor, the Issuer, the Letter of
Credit Bank, the Remarketing Agent, the Registrar, any Authenticating Agent, any
Paying Agent and the Borrower, an instrument or document in writing accepting
the appointment. Thereupon, without any further act, the

                                       46
<PAGE>

successor shall become vested with all of the trusts, properties, remedies,
powers, rights, duties, obligations, discretions, privileges, claims, demands,
causes of action, immunities, estates, titles, interests and liens of its
predecessor. Upon the written request of its successor, the Issuer, the Letter
of Credit Bank or the Borrower, the predecessor Trustee (i) shall execute and
deliver an instrument or document transferring to its successor all of the
trusts, properties, remedies, powers, rights, duties, obligations, discretions,
privileges, claims, demands, causes of action, immunities, estates, titles,
interests and liens of the predecessor Trustee hereunder, and (ii) shall take
any other action necessary to duly assign, transfer and deliver to its successor
all property (including without limitation, all securities and moneys) held by
it as Trustee. Should any instrument or document in writing from the Issuer be
requested by any successor Trustee for vesting and conveying more fully and
certainly in and to that successor the trusts, properties, remedies, powers,
rights, duties, obligations, discretions, privileges, claims, demands, causes of
action, immunities, estates, titles, interest and liens vested or conveyed or
intended to be vested or conveyed hereby in or to the predecessor Trustee, the
Issuer shall execute, acknowledge and deliver that instrument or document.

          In the event of a change in the Trustee, the predecessor Trustee shall
cease to be custodian of any moneys which it may hold pursuant to this Indenture
and shall cease to be Registrar, Authenticating Agent and a Paying Agent for any
of the Bonds, to the extent it served in any of those capacities. The successor
Trustee shall become custodian and, if applicable, Registrar, Authenticating
Agent and a Paying Agent.

          SECTION 6.10. Adoption of Authentication. In case any of the Bonds
                        --------------------------
shall have been authenticated, but shall not have been delivered, any successor
Trustee, Registrar or Authenticating Agent may adopt the certificate of
authentication of any predecessor Trustee, Registrar or Authenticating Agent and
may deliver those Bonds so authenticated as provided herein. In case any Bonds
shall not have been authenticated, any successor Trustee, Registrar or
Authenticating Agent may authenticate those Bonds either in the name of any
predecessor or in its own name. In all cases, the certificate of authentication
shall have the same force and effect as provided in the Bonds or in this
Indenture with respect to the certificate of authentication of the predecessor
Trustee, Registrar or Authenticating Agent.

          SECTION 6.11. Registrars.
                        ----------

          (a)  Succession. Anything herein to the contrary notwithstanding, any
               ----------
corporation or association (i) into which a Registrar may be converted or
merged, (ii) with which a Registrar or any successor to it may be consolidated,
or (iii) to which it may sell or transfer its assets as a whole or substantially
as a whole, or any corporation or association resulting from any such
conversion, merger, consolidation, sale or transfer, ipso facto, shall be and
                                                     ---- -----
become successor Registrar to that Registrar hereunder and shall be vested with
each and every power, right, duty, obligation, discretion and privilege
expressed or intended by this Indenture to be exercised by or vested in the
predecessor Registrar, without the execution or filing of any instrument or
document or any further act on the part of any of the parties hereto.

          (b)  Resignation. A Registrar may resign at any time by giving written
               -----------
notice of its resignation to the Issuer, the Borrower, the Trustee, the Letter
of Credit Bank, the Remarketing Agent, the Original Purchaser of each series of
Bonds then outstanding for which it is Registrar, and to each Paying Agent and
Authenticating Agent for those series of Bonds, at

                                       47
<PAGE>

least 60 days before the resignation is to take effect. The resignation shall
take effect immediately, however, upon the appointment of a successor Registrar,
if the successor Registrar is appointed and accepts that appointment before the
time stated in the notice.

          (c)  Removal. The Registrar may be removed at any time by an
               -------
instrument or document or concurrent instruments or documents in writing
delivered to the Registrar, with copies thereof mailed to the Issuer, the
Trustee, the Letter of Credit Bank, the Remarketing Agent and the Borrower, and
signed by or on behalf of the Holders of not less than a majority in aggregate
principal amount of the Bonds then outstanding.

          (d)  Appointment of Successors. If (i) a Registrar shall resign, shall
               -------------------------
be removed, shall be dissolved, or shall become otherwise incapable of acting
hereunder, (ii) a Registrar shall be taken under the control of any public
officer or officers, (iii) a receiver shall be appointed for a Registrar by a
court, or (iv) a Registrar shall have an order for relief entered in any case
commenced by or against it under the federal bankruptcy laws or commence a
proceeding under any federal or state bankruptcy, insolvency, reorganization or
similar law, or have such a proceeding commenced against it and either have an
order of insolvency or reorganization entered against it or have the proceeding
remain undismissed and unstayed for ninety days, then a successor Registrar
shall be appointed by the Borrower, with the written consent of the Trustee;
provided, that if a successor Registrar is not so appointed within ten days
after (a) a notice of resignation or an instrument or document of removal is
received by the Issuer, as provided above, or (b) the Registrar is dissolved,
taken under control, becomes incapable of acting or a receiver is appointed, in
each case, as provided above, then, if the Borrower shall not have appointed a
successor Registrar, the Trustee or the Holders of a majority in aggregate
principal amount of Bonds then outstanding may designate a successor Registrar
by an instrument or document or concurrent instruments or documents in writing
signed by the Trustee, or in the case of the Holders, by or on behalf of those
Holders.

          Every successor Registrar appointed hereunder shall execute and
acknowledge, and shall deliver to its predecessor, the Issuer, the Letter of
Credit Bank, the Remarketing Agent, the Trustee and the Borrower, an instrument
or document in writing accepting the appointment. Thereupon, without any further
act, the successor shall become vested with all of the properties, remedies,
powers, rights, duties, obligations, discretions, privileges, claims, demands,
causes of action, immunities, titles and interest of its predecessor. Upon the
written request of its successor, the Issuer, the Letter of Credit Bank or the
Borrower, a predecessor Registrar (i) shall execute and deliver an instrument or
document transferring to its successor all of the properties, remedies, powers,
rights, duties, obligations, discretions, privileges, claims, demands, causes of
action, immunities, titles and interests of it as predecessor Registrar
hereunder, and (ii) shall take any other action necessary to duly assign,
transfer and deliver to its successor all property and records (including
without limitation, the Register and any cancelled Bonds) held by it as
Registrar. Should any instrument or document in writing from the Issuer be
requested by any successor Registrar for vesting and conveying more fully and
certainly in and to that successor the properties, remedies, powers, rights,
duties, obligations, discretions, privileges, claims, demands, causes of action,
immunities, titles and interests vested or conveyed or intended to be vested or
conveyed hereby in or to a predecessor Registrar, the Issuer shall execute,
acknowledged and deliver that instrument or document.

                                       48
<PAGE>

          (e)  Compensation and Other Applicable Provisions. The Trustee shall
               --------------------------------------------
pay to the Registrar from time to time reasonable compensation as authorized in
Section 6.03 hereof for its services, and the Trustee shall be entitled to be
reimbursed for such payments, subject to Section 6.03 hereof.

          The provisions of Section 3.05 and Subsection 6.02(d) shall be
applicable to the Registrar.

          SECTION 6.12. Designation and Succession of Paying Agents. The Trustee
                        -------------------------------------------
shall be a Paying Agent for the Bonds, and, with the consent of the Issuer, the
Trustee may appoint a Paying Agent or Agents with power to act on its behalf and
subject to its direction in the payment of Bond Service Charges on any series of
Bonds. It is the responsibility of the Trustee to establish the duties and
responsibilities of any Paying Agent for the purposes of this Indenture, to the
extent not specified herein.

          Any corporation or association with or into which any Paying Agent may
be merged or converted or with which it may be consolidated, or any corporation
or association resulting from any merger, consolidation or conversion to which
any Paying Agent shall be a party, or any corporation or association succeeding
to the trust business of any Paying Agent, shall be the successor of that Paying
Agent hereunder, if that successor corporation or association is otherwise
eligible hereunder, without the execution or filing of any paper or any further
act on the part of the parties hereto or the Paying Agent or that successor
corporation or association.

          Any Paying Agent may at any time resign by giving written notice of
resignation to the Trustee, to the Registrar and to the Borrower. The Trustee
may at any time terminate the agency of any Paying Agent by giving written
notice of termination to such Paying Agent, to the Registrar and to the
Borrower. Upon receiving such a notice of resignation or upon such termination,
or in case at any time any Paying Agent shall cease to be eligible under this
Section, the Trustee may appoint a successor Paying Agent. The Trustee shall
give written notice of appointment of a successor Paying Agent to the Borrower,
the Issuer and the Registrar and shall mail, within ten days after that
appointment, notice thereof to all Holders as their names and addresses appear
on the Register on the date of that appointment.

          The Trustee shall pay to any Paying Agent from time to time reasonable
compensation as authorized in Section 6.03 hereof for its services, and the
Trustee shall be entitled to be reimbursed for such payments, subject to Section
6.03 hereof.

          The provisions of Section 3.05 and Subsection 6.02(d) shall be
applicable to any Paying Agent.

          SECTION 6.13. Designation and Succession of Authenticating Agents.
                        ---------------------------------------------------
With the consent of the Issuer, the Trustee may appoint an Authenticating Agent
or Agents, in addition to the Registrar, with power to act on its behalf and
subject to its direction in the authentication and delivery of Bonds in
connection with transfers and exchanges under Sections 3.06 and 4.02 hereof. For
all purposes of this Indenture, the authentication and delivery of Bonds by an
Authenticating Agent pursuant to this Section shall be deemed to be
authentication and delivery of those Bonds by the Trustee.

                                       49
<PAGE>

          Any corporation or association with or into which any Authenticating
Agent may be merged or converted or with which it may be consolidated, or any
corporation or association resulting from any merger, consolidation or
conversion to which any Authenticating Agent shall be a party, or any
corporation or association succeeding to the trust business of any
Authenticating Agent, shall be the successor of that Authenticating Agent
hereunder, if that successor corporation or association is otherwise eligible
hereunder, without the execution or filing of any paper or any further act on
the part of the parties hereto or the Authenticating Agent or such successor
corporation or association.

          Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee, to the Registrar, to the Letter of Credit
Bank, to the Remarketing Agent, and to the Borrower. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent to the Registrar, to the Letter of
Credit Bank, to the Remarketing Agent, and to the Borrower. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time any
Authenticating Agent shall cease to be eligible under this Section, the Trustee
may appoint a successor Authenticating Agent. The Trustee shall give written
notice of appointment of a successor Authenticating Agent to the Borrower, the
Issuer, the Letter of Credit Bank, the Remarketing Agent and the Registrar and
shall mail, by first class mail, postage prepaid, within ten days after that
appointment, notice thereof to all Holders as their names and addresses appear
on the Register on the date of that appointment.

          The Trustee shall pay to any Authenticating Agent from time to time
reasonable compensation for its services, and the Trustee shall be entitled to
be reimbursed for such payments, subject to Section 6.03 hereof.

          The provisions of Section 3.05 and Subsections 6.02(b), (c), (d), (h)
and (i) shall be applicable to any Authenticating Agent.

          SECTION 6.14. Dealing in Bonds. The Trustee, the Letter of Credit
                        ----------------
Bank, the Remarketing Agent, a Registrar, a Paying Agent and an Authenticating
Agent, their affiliates, and any directors, officers, partners, employees or
agents thereof, in good faith, may become the owners of Bonds secured hereby
with the same rights which it or they would have hereunder if the Trustee, the
Registrar, the Letter of Credit Bank, the Remarketing Agent, Paying Agents or
Authenticating Agents did not serve in those capacities.

          SECTION 6.15. Representations, Agreements and Covenants of Trustee.
                        ----------------------------------------------------
The Trustee hereby represents that it is a national banking association duly
organized and validly existing under the laws of the United States of America,
in good standing and duly authorized to exercise corporate trust powers in the
State, and that it has an unimpaired reported capital and surplus of not less
than $50,000,000. The Trustee covenants that it will take such action, if any,
as is necessary to remain in good standing and duly authorized to exercise
corporate trust powers in the State, and that it will maintain an unimpaired
reported capital and surplus of not less than $50,000,000. The Trustee accepts
and agrees to observe and perform the duties and obligations of the Trustee to
which reference is made in any instrument or document providing security for any
of the Bonds.

                                       50
<PAGE>

          SECTION 6.16. Concerning the Remarketing Agent. The Issuer hereby
                        --------------------------------
appoints Huntington Capital Corp. as the Remarketing Agent. Any subsequent
Remarketing Agent shall be appointed by the Borrower with the consent of the
Letter of Credit Bank, and shall meet the qualifications set forth in this
Section and Section 6.17 hereof. The Remarketing Agent shall designate to the
Trustee its principal office and signify its acceptance of the duties and
obligations imposed upon it hereunder by a written instrument of acceptance
delivered to the Issuer, the Letter of Credit Bank, the Borrower and the Trustee
under which the Remarketing Agent will agree particularly to:

          (a)  compute the Seven Year Interest Rate, the Five Year Interest
     Rate, the Fixed Interest Rate, the One Year Interest Rate, the Six Month
     Interest Rate, the Three Month Interest Rate and the Weekly Interest Rate
     and give notice to the Trustee, the Letter of Credit Bank and the Borrower
     on each applicable Interest Rate Determination Date, all in accordance with
     this Indenture;

          (b)  keep such records relating to the Seven Year Interest Rate, Five
     Year Interest Rate, the Fixed Interest Rate, the One Year Interest Rate,
     the Six Month Interest Rate, the Three Month Interest Rate and the Weekly
     Interest Rate as shall be consistent with prudent industry practice and to
     make such records available for inspection by the Issuer, the Trustee, the
     Letter of Credit Bank and the Borrower at all reasonable times; and

          (c)  perform all of its functions and duties under this Indenture.

          The Remarketing Agent shall be entitled to advice of legal counsel on
any matter relating to the Remarketing Agent's obligations hereunder and shall
be entitled to act upon the opinion of such counsel in the exercise of
reasonable care in fulfilling such obligations.

          The Remarketing Agent shall be entitled to appoint a co-Remarketing
Agent to assist in the performance of the Remarketing Agent's obligations under
this Indenture, and such appointment shall be effective without any action by
the Issuer, the Borrower or the Letter of Credit Bank being necessary; provided
that such co-Remarketing Agent shall be a member in good standing of the
National Association of Securities Dealers, Inc., having a capitalization of at
least $2,000,000, shall be in conformity with all standards and requirements of
the Municipal Securities Rulemaking Board and the Securities and Exchange
Commission, and shall be authorized by law to perform all the duties imposed
upon it by this Indenture.

          SECTION 6.17. Qualifications of Remarketing Agent. The Remarketing
                        -----------------------------------
Agent shall be a member in good standing of the National Association of
Securities Dealers, Inc., having a capitalization of at least $2,000,000, shall
be in conformity with all standards and requirements of the Municipal Securities
Rulemaking Board and the Securities and Exchange Commission, and shall be
authorized by law to perform all the duties imposed upon it by this Indenture.
The Remarketing Agent may at any time resign and be discharged of the duties and
obligations created by this Indenture by giving notice to the Issuer, the
Borrower, the Letter of Credit Bank and the Trustee. The Remarketing Agent may
be removed at any time by the Borrower and the Letter of Credit Bank. To effect
such removal, the Borrower and the Letter of Credit Bank shall furnish to the
Remarketing Agent, the Trustee and the Issuer a certificate announcing such
removal.

                                       51
<PAGE>

          Upon any resignation or removal of the Remarketing Agent, the
departing Remarketing Agent shall pay over, assign and deliver any moneys and
Series 1999 Bonds held by it in such capacity to its successor or, if there be
no successor, to the Trustee.

          In the event that the Remarketing Agent shall resign, or be removed or
dissolved, or if the property or affairs of the Remarketing Agent shall be taken
under the control of any state or Federal court or administrative body because
of bankruptcy or insolvency, or for any other reason, and the Borrower and the
Letter of Credit Bank shall not have appointed its successor as Remarketing
Agent, the Trustee, notwithstanding the provisions of the first paragraph of
this Section, shall ipso facto be deemed to be the Remarketing Agent until the
                    ---- -----
appointment by the Issuer, the Borrower and the Letter of Credit Bank of the
successor Remarketing Agent; provided, however, that the Trustee shall not (i)
establish interest rates otherwise than as provided in clause (b) of each of the
definitions of the Interest Rate Modes or (ii) remarket Series 1999 Bonds, but
shall be required only to implement the purchase of Series 1999 Bonds pursuant
to a draw on the Letter of Credit as provided for in Sections 2.05 and 2.06
hereof.

          The Trustee shall, within thirty (30) days of the resignation or
removal of the Remarketing Agent or the appointment of a successor Remarketing
Agent, give notice thereof by registered or certified mail to the registered
holders of the Series 1999 Bonds.

          SECTION 6.18. Remarketing of Series 1999 Bonds. No later than (i)
                        --------------------------------
12:00 noon local time at the principal corporate trust office of the Trustee on
the seventh Business Day prior to each Bond Purchase Date while the Series 1999
Bonds are in an Interest Rate Mode other than the Weekly Interest Rate or (ii)
six calendar days prior to each Bond Purchase Date while the Series 1999 Bonds
bear interest at the Weekly Interest Rate, the Trustee shall give notice to the
Remarketing Agent by telephone or telegraph, confirmed on the same day in
writing, which states (a) the name and address of each Holder which has given
notice of exercise of an option with respect to such Bond Purchase Date as
provided in paragraph B. of Section 2.05 hereof, and the principal amount of
Series 1999 Bonds to be tendered by such Holder and/or (b) the aggregate
principal amount of Series 1999 Bonds deemed to be tendered pursuant to Section
2.06 hereof. No later than (i) 12:00 noon local time at the principal corporate
trust office of the Trustee on the fifth Business Day prior to such Bond
Purchase Date while the Series 1999 Bonds are in an Interest Rate Mode other
than the Weekly Interest Rate or (ii) 11:00 a.m. according to the local time at
the principal corporate trust office of the Trustee on the Business Day
immediately prior to such Bond Purchase Date while the Series 1999 Bonds bear
interest at the Weekly Interest Rate, the Trustee shall give notice to the
Remarketing Agent by telephone or telegraph, confirmed on the same day in
writing, which states the principal amount of Series 1999 Bonds duly tendered by
each Holder with respect to such Bond Purchase Date as provided in paragraph B.
of Section 2.05 hereof and/or deemed to be tendered pursuant to Section 2.06
hereof.

          Based upon such notices from the Trustee, the Remarketing Agent shall
use its best efforts to sell all Series 1999 Bonds tendered or deemed to be
tendered pursuant to Sections 2.05 or 2.06 hereof for settlement on the
applicable Bond Purchase Date.

          The Remarketing Agent shall have the right to remarket any Series 1999
Bond (or portion thereof) tendered or deemed to be tendered pursuant to Sections
2.05 or 2.06 hereof;

                                       52
<PAGE>

provided, however, that no such Series 1999 Bond shall be remarketed at a price
of less than 100% of the principal amount thereof. The Remarketing Agent shall
have the right to purchase any Series 1999 Bond tendered or deemed to be
tendered pursuant to Sections 2.05 or 2.06 hereof at 100% of the principal
amount thereof, and to thereafter sell such Series 1999 Bond. Any such purchase
shall constitute a remarketing hereunder.

          No later than 11:00 a.m. according to the local time at the principal
office of the Trustee on each Bond Purchase Date, the Remarketing Agent shall
pay to the Trustee, in immediately available funds, the proceeds theretofore
received by the Remarketing Agent from the remarketing of Series 1999 Bonds
tendered for purchase on such Bond Purchase Date. The Trustee shall deposit such
proceeds into the Bond Fund and use them to purchase Series 1999 Bonds tendered
for purchase, pursuant to the provisions of Section 5.04 hereof.

          SECTION 6.19  Delivery of Purchased Series 1999 Bonds. On or before
                        ---------------------------------------
10:00 a.m. the Business Day next preceding each Bond Purchase Date, the
Remarketing Agent, by telephonic advice, shall notify the Trustee of (i) the
principal amount of Series 1999 Bonds to be sold by the Remarketing Agent
pursuant to Section 6.18 hereof and the names, addresses and social security
numbers or other tax identification numbers of the proposed purchasers thereof
and (ii) the principal amount of Series 1999 Bonds tendered for purchase on such
Bond Purchase Date which will not be sold by the Remarketing Agent pursuant to
Section 6.18 hereof. Such telephonic advice shall be confirmed by written notice
delivered or mailed on the same date as the telephonic advice.

          Series 1999 Bonds purchased by the Trustee pursuant to Section 2.05 or
Section 2.06 hereof shall be delivered as follows:

          (a)  Series 1999 Bonds sold by the Remarketing Agent pursuant to
     Section 6.18 hereof shall be delivered to the purchasers thereof.

          (b)  Series 1999 Bonds not sold by the Remarketing Agent pursuant to
     Section 6.18 hereof shall be registered in the names of the Borrower, as
     pledgor, and the Letter of Credit Bank, as pledgee, and delivered to the
     Letter of Credit Bank to be held by the Letter of Credit Bank pursuant to
     the pledge of such Bonds provided for in the Letter of Credit Agreement.

          Series 1999 Bonds delivered as provided in this Section shall be
registered in the manner directed by the recipient thereof.

                               (End of Article VI)

                                       53
<PAGE>

                                  ARTICLE VII

                        DEFAULT PROVISIONS AND REMEDIES
                            OF TRUSTEE AND HOLDERS

          SECTION 7.01. Defaults; Events of Default. The occurrence of any of
                        ---------------------------
the following events is defined as and declared to be and to constitute an Event
of Default hereunder:

          (a)  Payment of any interest on any Bond shall not be made when and as
     that interest shall become due and payable;

          (b)  Payment of the principal of or any premium on any Bond shall not
     be made when and as that principal or premium shall become due and payable,
     whether at stated maturity, by redemption, pursuant to any mandatory
     sinking fund requirements, by acceleration or otherwise;

          (c)  Failure to pay, by the Bond Purchase Date, amounts due to the
     Holder of any Bond who has tendered such Bond to the Trustee for purchase
     or redemption pursuant to Section 2.05 or Section 2.06 hereof;

          (d)  Failure by the Issuer to observe or perform any other covenant,
     agreement or obligation on its part to be observed or performed contained
     in this Indenture or in the Bonds, which failure shall have continued for a
     period of 60 days after written notice, by registered or certified mail, to
     the Issuer, the Letter of Credit Bank and the Borrower specifying the
     failure and requiring that it be remedied, which notice may be given by the
     Trustee in its discretion and shall be given by the Trustee at the written
     request of the Holders of not less than 25 percent in aggregate principal
     amount of Bonds then outstanding;

          (e)  The occurrence and continuation of an Event of Default as defined
     in Section 7.1 of the Agreement;

          (f)  Receipt by the Trustee of a written notice from the Letter of
     Credit Bank that an Event of Default has occurred under the Letter of
     Credit Agreement and directing the Trustee to accelerate the maturity of
     the Series 1999 Bonds;

          (g)  Failure of the Letter of Credit Bank to honor any drawing in
     accordance with the terms of the Letter of Credit;

          (h)  The Letter of Credit Bank shall: (i) commence a proceeding under
     any federal or state insolvency, reorganization or similar law, or have
     such a proceeding commenced against it and either have an order of
     insolvency or reorganization entered against it or have the proceeding
     remain undismissed and unstayed for 90 days; or (ii) have a receiver,
     conservator, liquidator or trustee appointed for it or for the whole or any
     substantial part of its property; and

          (i)  Receipt by the Trustee of written notice from the Letter of
     Credit Bank that, subsequent to any remarketing or interest drawing by the
     Trustee under the Letter of

                                       54
<PAGE>

     Credit, the amount available to be drawn by the Trustee under the Letter of
     Credit has not been reinstated in accordance with the Letter of Credit
     Agreement.

          The term "default" or "failure" as used in this Article means (i) a
default or failure by the Issuer in the observance or performance of any of the
covenants, agreements or obligations on its part to be observed or performed
contained in this Indenture or in the Bonds, or (ii) a default or failure by the
Borrower under the Agreement, exclusive of any period of grace or notice
required to constitute a default or failure an Event of Default, as provided
above or in the Agreement.

          The provisions of paragraph (h) above are subject to the condition
that the declaration of an Event of Default due to any of the acts or
circumstances specified therein, and the exercise of remedies upon any such
declaration, shall be subject to any applicable limitations of bankruptcy,
insolvency or receivership laws applicable to the Letter of Credit Bank
affecting or precluding such declaration or exercise during the pendency of or
immediately following any bankruptcy, insolvency, receivership, liquidation or
reorganization proceedings.

          SECTION 7.02.  Notice of Default. If an Event of Default shall
                         -----------------
occur, the Trustee shall give written notice of the Event of Default, by
registered or certified mail, to the Issuer, the Borrower, the Letter of Credit
Bank, the Remarketing Agent, the Registrar, any Paying Agent and Authenticating
Agent and the Original Purchaser of each series of Bonds, within five days after
the Trustee has received notice pursuant to Section 6.02(f) of an Event of
Default, or the Event of Default is an event as described in Section 7.01(a),
(b), (c) or (g) hereof. In addition, the Trustee shall promptly notify the
Borrower by telephone if the Trustee has not received any Loan Payment on the
date on which such Loan Payment is due.

          SECTION 7.03.  Acceleration. Upon the occurrence of an Event of
                         ------------
Default as specified in paragraph (a), (b), (c), (f), (g), (h) or (i) of Section
7.01 hereof, the Trustee shall declare, by a notice in writing delivered to the
Borrower, the principal of all Bonds then outstanding (if not then due and
payable), together with interest accrued thereon, to be due and payable
immediately. Upon the occurrence of any other Event of Default, the Trustee
shall, upon the written direction of the Letter of Credit Bank, declare by a
notice in writing delivered to the Borrower the principal of all Bonds then
outstanding (if not then due and payable), together with interest accrued
thereon, to be due and payable immediately.

          Any such declaration shall be by notice in writing to the Issuer, the
Letter of Credit Bank, the Remarketing Agent, and the Borrower, and, upon said
declaration, principal and interest on all Bonds shall become and be immediately
due and payable. The Trustee immediately upon such declaration shall give notice
thereof in the same manner as provided in Section 4.04 hereof with respect to
the redemption of the Bonds. Such notice shall specify the date on which payment
of principal and interest shall be tendered to the Holders of the Bonds.
Interest shall accrue to the payment date determined by the Trustee (which date
shall be within the period for which principal and interest on the Bonds is
covered by the amounts available under the Letter of Credit) pursuant to such
declaration or the actual payment date, if later. Upon any declaration of
acceleration hereunder, the Trustee shall immediately exercise such rights as it
may have under the Agreement to declare all payments thereunder to be
immediately due and payable and shall immediately draw upon the Letter of Credit
to the full extent permitted by the terms thereof.

                                       55
<PAGE>

          SECTION 7.04.  Other Remedies; Rights of Holders. With or without
                         ---------------------------------
taking action under Section 7.03 hereof, upon the occurrence and continuance of
an Event of Default, the Trustee may pursue any other available remedy to
enforce the payment of Bond Service Charges or the observance and performance of
any other covenant, agreement or obligation under this Indenture, the Agreement
or any other instrument providing security, directly or indirectly, for the
Bonds.

          If, upon the occurrence and continuance of an Event of Default as
specified in paragraph (d) or (e) of Section 7.01 hereof, the Trustee is
requested so to do by the Holders of at least a majority in aggregate principal
amount of Bonds outstanding and by the Letter of Credit Bank (if no Event of
Default under Section 7.01(g) or (h) has occurred and is continuing), the
Trustee (subject to the provisions of Sections 6.01 and 6.02 and particularly
subparagraph 6.01(c)(iv) and Subsection 6.02(j) of those Sections), shall
exercise any rights and powers conferred by this Section and by Section 7.03
hereof.

          No remedy conferred upon or reserved to the Trustee (or to the
Holders) by this Indenture is intended to be exclusive of any other remedy. Each
remedy shall be cumulative and shall be in addition to every other remedy given
hereunder or otherwise to the Trustee or to the Holders now or hereafter
existing. Anything in the foregoing to the contrary notwithstanding, so long as
no Event of Default under Section 7.01(g) or (h) has occurred and is continuing,
the Letter of Credit Bank shall have the exclusive right to give direction to
the Trustee as to remedies.

          No delay in exercising or omission to exercise any remedy, right or
power accruing upon any default or Event of Default shall impair that remedy,
right or power or shall be construed to be a waiver of any default or Event of
Default or acquiescence therein. Every remedy, right and power may be exercised
from time to time and as often as may be deemed to be expedient.

          No waiver of any default or Event of Default hereunder, whether by the
Trustee or by the Holders, shall extend to or shall affect any subsequent
default or Event of Default or shall impair any remedy, right or power
consequent thereon.

          As the assignee of all right, title and interest of the Issuer in and
to the Agreement (except for the Unassigned Issuer's Rights), the Trustee is
empowered to enforce each remedy, right and power granted to the Issuer under
the Agreement. In exercising any remedy, right or power thereunder or hereunder,
the Trustee shall take any action which would best serve the interests of the
Holders in the judgment of the Trustee, applying the standards described in
Section 6.01 and 6.02 hereof.

          SECTION 7.05.  Right of Holders to Direct Proceedings. Anything
                         --------------------------------------
to the contrary in this Indenture notwithstanding, the Holders of a majority in
aggregate principal amount of Bonds then outstanding shall have the right at any
time to direct, by an instrument or document or instruments or documents in
writing executed and delivered to the Trustee, the method and place of
conducting all proceedings to be taken in connection with the enforcement of the
terms and conditions of this Indenture or any other proceedings hereunder;
provided, that (i) any direction shall not be other than in accordance with the
provisions of law and of this Indenture, (ii) the Trustee shall be indemnified
as provided in Sections 6.01 and 6.02, (iii) the

                                       56
<PAGE>

Trustee may take any other action which it deems to be proper and which is not
inconsistent with the direction, and (iv) anything in the foregoing to the
contrary notwithstanding, so long as no Event of Default under Section 7.01(g)
or (h) has occurred and is continuing, the Letter of Credit Bank shall have the
exclusive right to give any such directions to the Trustee.

          SECTION 7.06.  Application of Moneys. All moneys received by the
                         ---------------------
Trustee after acceleration of the maturity of the Bonds and derived from any
drawing made upon a Letter of Credit shall be applied by the Trustee to and only
to the payment of principal of or interest on the series of Bonds it secures.
Subject to the foregoing, after payment of any costs, expenses, liabilities and
advances paid, incurred or made by the Trustee hereunder or under the Bonds or
the Agreement (including without limitation, reasonable attorneys' fees and
expenses, except as limited by law or judicial order or decision entered in any
action taken under this Article VII), all moneys received by the Trustee under
this Indenture, including any moneys in the Project Fund, shall be applied as
follows, subject to any provision made pursuant to Sections 4.05, 5.07 or 5.08
hereof:

          (a)  Unless the principal of all of the Bonds shall have become, or
     shall have been declared to be, due and payable, all of those moneys shall
     be deposited in the Bond Fund and shall be applied;

                    First -- To the payment to the Holders entitled thereto of
          all installments of interest then due on the Bonds, in the order of
          the dates of maturity of the installments of that interest, beginning
          with the earliest date of maturity and if the amount available is not
          sufficient to pay in full any particular installment, then to the
          payment thereof ratably, according to the amounts due on that
          installment, to the Holders entitled thereto, without any
          discrimination or privilege, except as to any difference in the
          respective rates of interest specified in the Bonds; and

                    Second -- To the payment to the Holders entitled thereto of
          the unpaid principal of any of the Bonds which shall have become due
          (other than Bonds previously called for redemption for the payment of
          which moneys are held pursuant to the provisions of this Indenture),
          whether at stated maturity, by redemption or pursuant to any mandatory
          sinking fund requirements, in the order of their due dates, beginning
          with the earliest due date, with interest on those Bonds from the
          respective dates upon which they become due at the rates specified in
          those Bonds, and if the amount available is not sufficient to pay in
          full all Bonds due on any particular date, together with that
          interest, then to the payment thereof ratably, according to the
          amounts of principal due on that date, to the Holders entitled
          thereto, without any discrimination or privilege, except as to any
          difference in the respective rates of interest specified in the Bonds.

          (b)  If the principal of all of the Bonds shall have become due or
     shall have been declared to be due and payable pursuant to this Article,
     all of those moneys shall be deposited into the Bond Fund and shall be
     applied to the payment of the principal and interest then due and unpaid
     upon the Bonds, without preference or priority of principal over interest,
     of interest over principal, of any installment of interest over any other
     installment of interest, or of any Bond over any other Bond, ratably,
     according to the

                                       57
<PAGE>

     amounts due respectively for principal and interest, to the Holders
     entitled thereto, without any discrimination or privilege, except as to any
     difference in the respective rates of interest specified in the Bonds.
     Moneys remaining in the Bond Fund thereafter shall be applied as set forth
     in Section 5.08 hereof.

          (c)  If the principal of all of the Bonds shall have been declared to
     be due and payable pursuant to this Article, and if that declaration
     thereafter shall have been rescinded and annulled under the provisions of
     Section 7.10 hereof, subject to the provisions of paragraph (b) of this
     Section in the event that the principal of all of the Bonds shall become
     due and payable later, the moneys shall be deposited in the Bond Fund and
     shall be applied in accordance with the provisions of Article V.

          (d)  Whenever moneys are to be applied pursuant to the provisions of
     this Section, those moneys shall be applied as soon as practicable as the
     Trustee shall determine, having due regard to the amount of moneys
     available for application and the likelihood of additional moneys becoming
     available for application in the future. Whenever the Trustee shall direct
     the application of those moneys to payment of principal of and interest on
     the Bonds, it shall fix the date upon which the application is to be made,
     and upon that date, interest shall cease to accrue on the amounts of
     principal, if any, to be paid on that date, provided the moneys are
     available therefor. The Trustee shall give notice of the deposit with it of
     any moneys and of the fixing of that date, all consistent with the
     requirements of Section 3.05 hereof for the establishment of, and for
     giving notice with respect to, a Special Record Date for the payment of
     overdue interest. The Trustee shall not be required to make payment of
     principal of and any premium on a Bond to the Holder thereof, until the
     Bond shall be presented to the Trustee for appropriate endorsement or for
     cancellation if it is paid fully.

          SECTION 7.07.  Remedies Vested in Trustee. All rights of action
                         --------------------------
(including without limitation, the right to file proof of claims) under this
Indenture or under any of the Bonds may be enforced by the Trustee without the
possession of any of the Bonds or the production thereof in any trial or other
proceeding relating thereto. Any suit or proceeding instituted by the Trustee
shall be brought in its name as Trustee without the necessity of joining any
Holders as plaintiffs or defendants. Any recovery of judgment shall be for the
benefit of the Holders of the outstanding Bonds, subject to the provisions of
this Indenture.

          SECTION 7.08.  Rights and Remedies of Holders. A Holder shall not have
                         ------------------------------
any right to institute any suit, action or proceeding for the enforcement of
this Indenture, for the execution of any trust hereof, or for the exercise of
any other remedy hereunder, unless:

          (a)  there has occurred and is continuing an Event of Default of which
     the Trustee has been notified, as provided in paragraph (f) of Section 6.02
     hereof, or of which it is deemed to have notice under that paragraph,

          (b)  the Holders of at least twenty-five percent in aggregate
     principal amount of Bonds then outstanding shall have made written request
     to the Trustee and shall have afforded the Trustee reasonable opportunity
     to proceed to exercise the remedies, rights and powers granted herein or to
     institute the suit, action or proceeding in its own name,

                                       58
<PAGE>

     and shall have offered indemnity to the Trustee as provided in Sections
     6.01 and 6.02 hereof, and

          (c)  the Trustee thereafter shall have failed or refused to exercise
     the remedies, rights and powers granted herein or to institute the suit,
     action or proceeding in its own name.

At the option of the Trustee, that notification (or notice), request,
opportunity and offer of indemnity are conditions precedent in every case, to
the institution of any suit, action or proceeding described above. Anything in
the foregoing to the contrary notwithstanding, no Holder of any Bond shall have
any right to institute any suit, action or proceeding at law or in equity for
the enforcement of this Indenture or for the execution of any trust hereof or
for the appointment of a receiver or any other remedy hereunder unless an Event
of Default under Section 7.01(g) or (h) hereof shall have occurred and be
continuing.

          No one or more Holders of the Bonds shall have any right to affect,
disturb or prejudice in any manner whatsoever the security or benefit of this
Indenture by its or their action, or to enforce, except in the manner provided
herein, any remedy, right or power hereunder. Any suit, action or proceedings
shall be instituted, had and maintained in the manner provided herein for the
benefit of the Holders of all Bonds then outstanding. Nothing in this Indenture
shall affect or impair, however, the right of any Holder to enforce the payment
of the Bond Service Charges on any Bond owned by that Holder at and after the
maturity thereof, at the place, from the sources and in the manner expressed in
that Bond.

          SECTION 7.09.  Termination of Proceedings. In case the Trustee shall
                         --------------------------
have proceeded to enforce any remedy, right or power under this Indenture in any
suit, action or proceedings, and the suit, action or proceedings shall have been
discontinued or abandoned for any reason, or shall have been determined
adversely to the Trustee, the Issuer, the Trustee and the Holders shall be
restored to their former positions and rights hereunder, respectively, and all
rights, remedies and powers of the Trustee shall continue as if no suit, action
or proceedings had been taken.

          SECTION 7.10.  Waivers of Events of Default. Except as hereinafter
                         ----------------------------
provided, at any time, in its discretion, the Trustee, but only with the express
written consent of the Letter of Credit Bank, other than in the case of an Event
of Default described in Section 7.01(g) or (h) hereof, may waive any Event of
Default hereunder and its consequences and may rescind and annul any declaration
of maturity of principal of the Bonds. The Trustee shall do so upon the written
request of the Letter of Credit Bank (other than in the case of an Event of
Default described in Section 7.01(a), (b), (c), (g), (h) or (i) hereof).

          There shall not be so waived, however, any Event of Default described
in paragraph (a), (b), (c) or (f) of Section 7.01 hereof or any declaration of
acceleration in connection therewith rescinded or annulled except with the
written consent of the Letter of Credit Bank. There shall not be so waived,
however, any Event of Default described in paragraph (g), (h) or (i) of Section
7.01 hereof or any declaration of acceleration in connection therewith rescinded
or annulled except with the written consent of the Holders of all Bonds then
outstanding. In the case of the waiver or rescission and annulment, or in case
any suit, action or proceedings taken by the Trustee on account of any Event of
Default shall have been

                                       59
<PAGE>

discontinued, abandoned or determined adversely to it, the Issuer, the Trustee,
the Letter of Credit Bank and the Holders shall be restored to their former
positions and rights hereunder, respectively. No waiver or rescission shall
extend to any subsequent or other Event of Default or impair any right
consequent thereon.

          SECTION 7.11.  Certain Expenses as Expenses of Administration.
                         ----------------------------------------------
In the event the Trustee incurs expenses or renders services after an Event of
Default specified in Section 7.01 hereof occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any bankruptcy law.

                             (End of Article VII)

                                       60
<PAGE>

                                 ARTICLE VIII

                            SUPPLEMENTAL INDENTURES

          SECTION 8.01.  Supplemental Indentures Generally. The Issuer and the
                         ---------------------------------
Trustee may enter into indentures supplemental to this Indenture, as provided in
this Article and pursuant to the other provisions therefor in this Indenture.

          SECTION 8.02.  Supplemental Indentures Not Requiring Consent of
                         ------------------------------------------------
Holders. Without the consent of, or notice to, any of the Holders, the Issuer
-------
and the Trustee with the consent of the Letter of Credit Bank may enter into
indentures supplemental to this Indenture which shall not, in the opinion of the
Issuer and the Trustee, be inconsistent with the terms and provisions hereof for
any one or more of the following purposes:

          (a)  To cure any ambiguity, inconsistency or formal defect or omission
     in this Indenture;

          (b)  To grant to or confer upon the Trustee for the benefit of the
     Holders any additional rights, remedies, powers or authority that lawfully
     may be granted to or conferred upon the Holders or the Trustee;

          (c)  To assign additional revenues under this Indenture;

          (d)  To accept additional security and instruments and documents of
     further assurance with respect to the Project;

          (e)  To add to the covenants, agreements and obligations of the Issuer
     under this Indenture, other covenants, agreements and obligations to be
     observed for the protection of the Holders, or to surrender or limit any
     right, power or authority reserved to or conferred upon the Issuer in this
     Indenture, including without limitation, the limitation of rights of
     redemption so that in certain instances Bonds of different series will be
     redeemed in some prescribed relationship to one another for the protection
     of the Holders of a particular series of Bonds;

          (f)  To evidence any succession to the Issuer and the assumption by
     its successor of the covenants, agreements and obligations of the Issuer
     under this Indenture, the Agreement and the Bonds;

          (g)  To permit the exchange of Bonds, at the option of the Holder or
     Holders thereof, for coupon bonds of the same series payable to bearer in
     an aggregate principal amount not exceeding the unmatured and unredeemed
     principal amount of the Predecessor Bonds, bearing interest at the same
     rate or rates and maturing on the same date or dates, provided that the
     Trustee shall receive an opinion of Bond Counsel that such exchange would
     not result in the interest on any of the Series 1999 Bonds outstanding
     becoming included in gross income for federal income tax purposes;

                                       61
<PAGE>

          (h)  To permit the use of a book entry system to identify the owner of
     an interest in an obligation issued by the Issuer under this Indenture,
     whether that obligation was formerly, or could be, evidenced by a tangible
     security;

          (i)  To permit the Trustee to comply with any obligations imposed upon
     it by law;

          (j)  To specify further the duties and responsibilities of, and to
     define further the relationship among, the Trustee, the Registrar and any
     Authenticating Agents or Paying Agents;

          (k)  To achieve compliance of this Indenture with any applicable
     federal securities or tax law;

          (l)  To evidence the appointment of a new Remarketing Agent;

          (m)  To make necessary or advisable amendments or additions in
     connection with the issuance of Additional Bonds in accordance with Section
     2.07 hereof as do not adversely affect the interests of the Holders of
     Outstanding Series 1999 Bonds; and

          (n)  To permit any other amendment which, in the judgment of the
     Trustee, is not to the prejudice of the Trustee or the Holders.

The Trustee may also accept, without the consent of or notice to any of the
Holders, an Alternate Letter of Credit or any amendments to the Letter of Credit
necessary to continue the effectiveness of the Letter of Credit as originally
intended or which in the judgment of the Trustee are not to the prejudice of the
Holders.

          The provisions of Subsections 8.02(i) and (k) shall not be deemed to
constitute a waiver by the Trustee, the Registrar, the Issuer or any Holder of
any right which it may have in the absence of those provisions to contest the
application of any change in law to this Indenture or the Bonds.

          SECTION 8.03.  Supplemental Indentures Requiring Consent of
                         --------------------------------------------
Holders. Exclusive of Supplemental Indentures to which reference is made in
-------
Section 8.02 hereof and subject to the terms, provisions and limitations
contained in this Section, and not otherwise, with the consent of the Holders of
not less than a majority in aggregate principal amount of the Bonds at the time
outstanding, evidenced as provided in this Indenture, with the consent of the
Letter of Credit Bank, and with the consent of the Borrower if required by
Section 8.04 hereof, the Issuer and the Trustee may execute and deliver
Supplemental Indentures adding any provisions to, changing in any manner or
eliminating any of the provisions of this Indenture or any Supplemental
Indenture or restricting in any manner the rights of the Holders. Nothing in
this Section or Section 8.02 hereof shall permit, however, or be construed as
permitting:

          (a)  without the consent of the Holder of each Bond so affected and
     the Letter of Credit Bank, (i) an extension of the maturity of the
     principal of or the interest on any Bond, (ii) a reduction in the principal
     amount of any Bond or the rate of interest or

                                       62
<PAGE>

     premium thereon, or (iii) a reduction in the amount or extension of the
     time of payment of any mandatory sinking fund requirements, or

          (b)  without the consent of the Holders of all Bonds then outstanding
     and the Letter of Credit Bank, (i) the creation of a privilege or priority
     of any Bond or Bonds over any other Bond or Bonds, or (ii) a reduction in
     the aggregate principal amount of the Bonds required for consent to a
     Supplemental Indenture.

          If the Issuer shall request that the Trustee execute and deliver any
Supplemental Indenture for any of the purposes of this Section, upon (i) being
satisfactorily indemnified with respect to its expenses in connection therewith,
and (ii) if required by Section 8.04 hereof, receipt of the Borrower's consent
and receipt of the Letter of Credit Bank's consent to the proposed execution and
delivery of the Supplemental Indenture, the Trustee shall cause notice of the
proposed execution and delivery of the Supplemental Indenture to be mailed by
first class mail, postage prepaid, to all Holders of Bonds then outstanding at
their addresses as they appear on the Register at the close of business on the
fifteenth day preceding that mailing.

          The Trustee shall not be subject to any liability to any Holder by
reason of the Trustee's failure to mail, or the failure of any Holder to
receive, the notice required by this Section. Any failure of that nature shall
not affect the validity of the Supplemental Indenture when there has been
consent thereto as provided in this Section. The notice shall set forth briefly
the nature of the proposed Supplemental Indenture and shall state that copies
thereof are on file at the principal corporate trust office of the Trustee for
inspection by all Holders.

          If the Trustee shall receive, within a period prescribed by the
Issuer, of not less than 60 days, but not exceeding one year, following the
mailing of the notice, an instrument or document or instruments or documents, in
form to which the Trustee does not reasonably object, purporting to be executed
by the Holders of not less than a majority in aggregate principal amount of the
Bonds then outstanding (which instrument or document or instruments or documents
shall refer to the proposed Supplemental Indenture in the form described in the
notice and specifically shall consent to the Supplemental Indenture in
substantially that form), the Trustee shall, but shall not otherwise, execute
and deliver the Supplemental Indenture in substantially the form to which
reference is made in the notice as being on file with the Trustee, without
liability or responsibility to any Holder, regardless of whether that Holder
shall have consented thereto.

          Any consent shall be binding upon the Holder of the Bond giving the
consent and, anything herein to the contrary notwithstanding, upon any
subsequent Holder of that Bond and of any Bond issued in exchange therefor
(regardless of whether the subsequent Holder has notice of the consent to the
Supplemental Indenture). A consent may be revoked in writing, however, by the
Holder who gave the consent or by a subsequent Holder of the Bond by a
revocation of such consent received by the Trustee prior to the execution and
delivery by the Trustee of the Supplemental Indenture. At any time after the
Holders of the required percentage of Bonds shall have filed their consents to
the Supplemental Indenture, the Trustee shall make and file with the Issuer a
written statement that the Holders of the required percentage of Bonds have
filed those consents. That written statement shall be conclusive evidence that
the consents have been so filed.

                                       63
<PAGE>

          If the Holders of the required percentage in aggregate principal
amount of Bonds outstanding shall have consented to the Supplemental Indenture,
as provided in this Section, no Holder shall have any right (a) to object to (i)
the execution or delivery of the Supplemental Indenture, (ii) any of the terms
and provisions contained therein, or (iii) the operation thereof, (b) to
question the propriety of the execution and delivery thereof, or (c) to enjoin
or restrain the Trustee or the Issuer from that execution or delivery or from
taking any action pursuant to the provisions thereof.

          SECTION 8.04.  Consent of Borrower. Anything contained herein to the
                         -------------------
contrary notwithstanding, a supplemental Indenture executed and delivered in
accordance with this Article VIII which affects any rights of the Borrower shall
not become effective unless and until the Borrower shall have consented in
writing to the execution and delivery of that Supplemental Indenture. The
Trustee shall cause notice of the proposed execution and delivery of any
Supplemental Indenture and a copy of the proposed Supplemental Indenture to be
mailed to the Borrower, as provided in Section 13.03 hereof, (i) at least 30
days (unless waived by the Borrower) before the date of the proposed execution
and delivery in the case of a Supplemental Indenture to which reference is made
in Section 8.02 hereof, and (ii) at least 30 days (unless waived by the
Borrower) before the giving of the notice of the proposed execution and delivery
in the case of a Supplemental Indenture for which provision is made in Section
8.03 hereof.

          SECTION 8.05.  Authorization to Trustee; Effect of Supplement. The
                         ----------------------------------------------
Trustee is authorized to join with the Issuer in the execution and delivery of
any Supplemental Indenture in accordance with this Article and to make the
further agreements and stipulations which may be contained therein. Thereafter,

          (a)  that Supplemental Indenture shall form a part of this Indenture;

          (b)  all terms and conditions contained in that Supplemental Indenture
     as to any provision authorized to be contained therein shall be deemed to
     be a part of the terms and conditions of this Indenture for any and all
     purposes;

          (c)  this Indenture shall be deemed to be modified and amended in
     accordance with the Supplemental Indenture; and

          (d)  the respective rights, duties and obligations under this
     Indenture of the Issuer, the Borrower, the Trustee, the Letter of Credit
     Bank, the Remarketing Agent, the Registrar, the Paying Agents, the
     Authenticating Agents and all Holders of Bonds then outstanding shall be
     determined, exercised and enforced hereunder in a manner which is subject
     in all respects to those modifications and amendments made by the
     Supplemental Indenture.

          Express reference to any executed and delivered Supplemental Indenture
may be made in the text of any Bonds issued thereafter, if that reference is
deemed necessary or desirable by the Trustee or the Issuer. A copy of any
Supplemental Indenture for which provision is made in this Article shall be
mailed by the Trustee to the Registrar, each Authenticating Agent and Paying
Agent and the Original Purchaser of each series of Bonds affected thereby. The
Trustee shall not be required to execute any Supplemental Indenture containing
provisions adverse to the Trustee.

                                       64
<PAGE>

          SECTION 8.06.  Opinion of Counsel. The Trustee shall be entitled to
                         ------------------
receive, and shall be fully protected in relying upon, the opinion of any
counsel approved by it as conclusive evidence that (i) any proposed Supplemental
Indenture complies with the provisions of this Indenture, and (ii) it is proper
for the Trustee to join in the execution of that Supplemental Indenture under
the provisions of this Article. That counsel may be counsel for the Issuer or
the Borrower.

          SECTION 8.07.  Modification by Unanimous Consent. Notwithstanding
                         ---------------------------------
anything contained elsewhere in this Indenture, the rights and obligations of
the Issuer and of the Holders, and the terms and provisions of the Bonds and
this Indenture or any Supplemental Indenture, may be modified or altered in any
respect with the consent of (i) the Issuer, (ii) the Holders of all of the Bonds
then outstanding, (iii) the Letter of Credit Bank, and (iv) if required by
Section 8.04 hereof, the Borrower.

                             (End of Article VIII)

                                       65
<PAGE>

                                  ARTICLE IX

                                  DEFEASANCE

          SECTION 9.01.  Release of Indenture.  If (i) the Issuer shall pay all
                         --------------------
of the outstanding Bonds, or shall cause them to be paid and discharged, or if
there otherwise shall be paid to the Holders of the outstanding Bonds, all Bond
Service Charges due or to become due thereon, and (ii) provision also shall be
made for the payment of all other sums payable hereunder and under the
Agreement, then this Indenture shall cease, determine and become null and void
(except for those provisions surviving by reason of Section 9.03 hereof in the
event the Bonds are deemed paid and discharged pursuant to Section 9.02 hereof),
and the covenants, agreements and obligations of the Issuer hereunder shall be
released, discharged and satisfied. Thereupon,

          (i)  the Trustee shall release this Indenture (except for those
     provisions surviving by reason of Section 9.03 hereof in the event the
     Bonds are deemed paid and discharged pursuant to Section 9.02 hereof), and
     shall execute and deliver to the Issuer any instruments or documents in
     writing as shall be requisite to evidence that release and discharge or as
     reasonably may be requested by the Issuer, and

          (ii) the Trustee and any other Paying Agents shall assign and deliver
     to the Issuer any property subject at the time to the lien of this
     Indenture which then may be in their possession, except amounts in the Bond
     Fund required (a) to be paid to the Borrower or the Letter of Credit Bank
     under Section 5.08 hereof, or (b) to be held by the Trustee and the Paying
     Agents under Section 5.07 hereof or otherwise for the payment of Bond
     Service Charges.

          SECTION 9.02.  Payment and Discharge of Bonds. All or any part of the
                         ------------------------------
Bonds shall be deemed to have been paid and discharged within the meaning of
this Indenture, including without limitation, Section 9.01 hereof, if:

          (a)  the Trustee as paying agent and any Paying Agents shall have
     received, in trust for and irrevocably committed thereto, sufficient
     moneys, or

          (b)  the Trustee shall have received, in trust for and irrevocably
     committed thereto, noncallable Government Obligations which are certified
     by an independent public accounting firm of national reputation to be of
     such maturities or redemption dates and interest payment dates, and to bear
     such interest, as will be sufficient together with any moneys to which
     reference is made in subparagraph (a) above, without further investment or
     reinvestment of either the principal amount thereof or the interest
     earnings therefrom (which earnings are to be held likewise in trust and so
     committed, except as provided herein), for the payment of all Bond Service
     Charges on those Bonds, at their maturity or redemption date, as the case
     may be, or if a default in payment shall have occurred on any maturity or
     redemption date, then for the payment of all Bond Service Charges thereon
     to the date of the tender of payment; provided, (i) with respect to
     provision for payment of any series of Bonds, such moneys represent, or
     such obligations were acquired with, moneys representing drawings made
     under the letter of credit related

                                       66
<PAGE>

     to such series of Bonds and (ii) if any of those Bonds are to be redeemed
     prior to the maturity thereof, notice of that redemption shall have been
     duly given or irrevocable provision satisfactory to the Trustee shall have
     been duly made for the giving of that notice.

          Any moneys held by the Trustee in accordance with the provisions of
this Section may be invested by the Trustee only in noncallable Government
Obligations having maturity dates, or having redemption dates which, at the
option of the holder of those obligations, shall be not later than the date or
dates at which moneys will be required for the purposes described above. To the
extent that any income or interest earned by, or increment to, the investments
held under this Section is determined from time to time by the Trustee to be in
excess of the amount required to be held by the Trustee for the purposes of this
Section, that income, interest or increment shall be transferred at the time of
that determination in the manner provided in Section 5.08 hereof for transfers
of amounts remaining in the Bond Fund.

          If any Bonds shall be deemed paid and discharged pursuant to this
Section 9.02, then within 15 days after such Bonds are so deemed paid and
discharged the Trustee shall cause a written notice by first class mail, postage
prepaid, to be given to each Holder thereof as shown on the Register on the date
on which such Bonds are deemed paid and discharged. Such notice shall state the
numbers of the Bonds deemed paid and discharged or state that all Bonds of a
particular series are deemed paid and discharged, set forth a description of the
obligations held pursuant to subparagraph (b) of the first paragraph of this
Section 9.02 and specify any date or dates on which any of the Bonds are to be
called for redemption pursuant to notice of redemption given or irrevocable
provisions made for such notice pursuant to the first paragraph of this Section
9.02.

          SECTION 9.03.  Survival of Certain Provisions. Notwithstanding the
                         ------------------------------
foregoing, any provisions of the Bond Legislation and this Indenture which
relate to the maturity of Bonds, interest payments and dates thereof, optional
and mandatory redemption provisions, credit against mandatory sinking fund
requirements, exchange, transfer and registration of Bonds, replacement of
mutilated, destroyed, lost or stolen Bonds, the safekeeping and cancellation of
Bonds, non-presentment of Bonds, the holding of moneys in trust, and repayments
to the Borrower or the Letter of Credit Bank from the Bond Fund and the duties
of the Trustee and the Registrar in connection with all of the foregoing, shall
remain in effect and be binding upon the Trustee, the Registrar, the
Authenticating Agents, Paying Agents and the Holders notwithstanding the release
and discharge of this Indenture. The provisions of this Article shall survive
the release, discharge and satisfaction of this Indenture.

                              (End of Article IX)

                                       67
<PAGE>

                                   ARTICLE X

                           COVENANTS AND AGREEMENTS
                                 OF THE ISSUER

          SECTION 10.01. Covenants and Agreements of the Issuer. In addition to
                         --------------------------------------
any other covenants and agreements of the Issuer contained in this Indenture or
the Bond Legislation, the Issuer further covenants and agrees with the Holders
and the Trustee as follows:

          (a) Payment of Bond Service Charges. The Issuer will pay all Bond
              -------------------------------
     Service Charges, or cause them to be paid, but solely from the sources
     provided herein, on the dates, at the places and in the manner provided in
     this Indenture.

          (b) Revenues and Assignment of Revenues. The Issuer will not assign
              -----------------------------------
     the Revenues or create or authorize to be created any debt, lien or charge
     thereon, other than the assignment thereof under this Indenture.

          (c) Recordings and Filings. At the request and expense of the
              ----------------------
     Borrower, the Issuer will cause this Indenture, and any related instrument
     or documents relating to the assignment made by it under this Indenture to
     secure the Bonds, to be recorded and filed in the manner and in the places
     which may be required by law in order to preserve and protect fully the
     security of the Holders and the rights of the Trustee hereunder. Not more
     than once every five years the Trustee may reasonably request an opinion of
     counsel, addressed to the Issuer and the Trustee, stating that based upon
     the law in effect on the date of such opinion no filing, registration or
     recording and no refiling, reregistration or rerecording of any agreement
     or instrument, including any financing statement or amendments thereto, or
     any continuation statements or instruments of a similar character relating
     to the pledges and assignments made by the Issuer or the Borrower to secure
     the Bonds, is required by law, in order to fully preserve and protect the
     security of the Trustee and the rights of the Trustee under the Indenture,
     or if such filing, registration, recording, refiling, reregistration or
     rerecording is necessary, setting forth the requirements in respect
     thereto. The Borrower, with such assistance and cooperation from the Issuer
     as the Borrower may reasonably request, shall take or cause to be taken all
     actions necessary to satisfy any such requirements. Promptly after any
     filing, registration, recording, refiling, reregistration or rerecording of
     any such agreement or instrument, the Trustee may request an opinion of
     counsel addressed to the Issuer and the Trustee to the effect that such
     filing, registration, recording, refiling, reregistration or rerecording
     has been duly accomplished and setting forth the particulars thereof. The
     Trustee shall be reimbursed by the Borrower for the reasonable fees paid in
     connection with such opinions of counsel.

          (d) Inspection of Project Books. All books, instruments and documents
              ---------------------------
     in the Issuer's possession relating to the Project and the Revenues shall
     be open to inspection and copying at all times during the Issuer's regular
     business hours by any accountants or other agents of the Trustee or the
     Letter of Credit Bank which the Trustee or the Letter of Credit Bank may
     designate from time to time.

                                       68
<PAGE>

          (e) Registrar. At reasonable times and under reasonable regulations
              ---------
     established by the Registrar, the Register may be inspected and copied by
     the Borrower, the Letter of Credit Bank, the Trustee, by Holders of twenty-
     five percent or more in principal amount of the Bonds then outstanding, or
     a designated representative thereof.

          (f) Rights and Enforcement of the Agreement. The Trustee may enforce,
              ---------------------------------------
     in its name or in the name of the Issuer, all rights of the Issuer for and
     on behalf of the Holders, except for Unassigned Issuer's Rights, and may
     enforce all covenants, agreements and obligations of the Borrower under and
     pursuant to the Agreement, regardless of whether the Issuer is in default
     in the pursuit or enforcement of those rights, covenants, agreements or
     obligations. The Issuer, however, will do all things and take all actions
     on its part necessary to comply with covenants, agreements, obligations,
     duties and responsibilities on its part to be observed or performed under
     the Agreement, and will take all actions within its authority to keep the
     Agreement in effect in accordance with the terms thereof.

          (g) Limitations on Actions and Responsibilities. The Issuer shall not
              -------------------------------------------
     be required to monitor the financial condition of the Borrower, the
     investment or expenditure of Bond proceeds, or the physical condition or
     use of the Project and, unless otherwise expressly provided, shall not have
     any responsibility with respect to notices, certificates or other documents
     filed with it. The Issuer shall not be required to take notice of any
     breach or default except when given notice thereof by the Trustee or the
     Bondholders, as the case may be. The Issuer shall not be responsible for
     the payment of any rebate to the United States under IRC (s)148(f). The
     Issuer shall not be required to take any action unless indemnity reasonably
     satisfactory to it is furnished for expenses or liability to be incurred
     therein (other than the giving of notice). The Issuer, upon written request
     of the Bondholders or the Trustee, and upon receipt of reasonable indemnity
     for expenses or liability, shall cooperate to the extent reasonably
     necessary to enable the Trustee to exercise any power granted to the
     Trustee by the Bond Documents. The Issuer shall be entitled to
     reimbursement as Additional Payments under the Agreement to the extent that
     it acts without previously obtaining full indemnity.

               The Issuer shall be entitled to the advice of counsel (who may be
     counsel for any party or for any Bondholder) and shall be wholly protected
     as to any action taken or omitted to be taken in good faith in reliance on
     such advice. The Issuer may rely conclusively on any notice, certificate or
     other document furnished to it under the Bond Documents and reasonably
     believed by it to be genuine. The Issuer shall not be liable for any action
     taken by it in good faith and reasonably believed by it to be within the
     discretion or power conferred upon it, or in good faith omitted to be taken
     by it and reasonably believed to be beyond such discretion or power, or
     taken by it pursuant to any direction or instruction by which it is
     governed under the Bond Documents or omitted to be taken by it by reason of
     the lack of direction or instruction required for such action under the
     Bond Documents, or be responsible for the consequences of any error of
     judgment reasonably made by it. When any payment, consent or other by the
     Issuer is called for by the Bond Documents, the Issuer may defer such
     action pending such investigation or inquiry or receipt of such evidence,
     if any, as it may require in support thereof. A permissive right or power
     to act shall not be construed as a

                                       69
<PAGE>

     requirement to act, and no delay in the exercise of a right or power shall
     affect the subsequent exercise thereof. The Issuer shall in no event be
     liable for the application or misapplication of funds, or for other acts or
     defaults by any person or entity except by its own directors, officers and
     employees. No recourse shall be had by the Borrower, the Trustee or any
     Bondholder for any claim based on the Bond Documents or the Bonds against
     any director, officer, employee or agent of the Issuer unless such claim is
     based upon the bad faith, fraud or deceit of such person. No covenant,
     obligation or agreement of the Issuer contained in the Bond Documents shall
     be deemed to be a covenant, obligation or agreement of any present or
     future director, officer, employee or agent of the Issuer in his individual
     capacity, and no person executing a Bond shall be liable personally thereon
     or be subject to any personal liability or accountability by reason of the
     issuance thereof.

          (h) Matters to be Considered by Issuer. In approving, concurring in or
              ----------------------------------
     consenting to action or in exercising any discretion or in making any
     determination under this Indenture or the Agreement, the Issuer may
     consider the interests of the public, which shall include the anticipated
     effect of any transaction on tax revenues and employment, as well as the
     interests of the other parties and the Bondholders; provided, however,
     nothing shall be construed as conferring on any person other than the other
     parties and the Bondholders any right to notice, hearing or participation
     in the Issuer's consideration, and nothing in this section shall be
     construed as conferring on any of them any right additional to those
     conferred elsewhere. Subject to the foregoing, the Issuer will not
     unreasonably withhold any approval or consent to be given by it hereunder.

          (i) Actions by Issuer. Any action which may be taken by the Issuer
              -----------------
     shall be deemed sufficiently taken if taken on its behalf by its Chairman,
     its Vice Chairman or its Executive Director or by any other member, officer
     or agent whom it may designate from time to time.

          SECTION 10.02. Observance and Performance of Covenants, Agreements,
                         ---------------------------------------------------
Authority and Actions. The Issuer will observe and perform faithfully at all
---------------------
times all covenants, agreements, authority, actions, undertakings, stipulations
and provisions to be observed or performed on its part under the Agreement, the
Indenture, the Bond Legislation and the Bonds which are executed, authenticated
and delivered under this Indenture, and under all proceedings of the Issuer
pertaining thereto.

          The Issuer represents and warrants that:

          (a) It is duly authorized by the laws of the State, particularly and
     without limitation the Act, to issue the Bonds, to execute and deliver this
     Indenture and the Agreement and to provide the security for payment of the
     Bond Service Charges in the manner and to the extent set forth in this
     Indenture; and

          (b) All actions required on its part to be performed for the issuance,
     sale and delivery of the Bonds and for the execution and delivery of this
     Indenture and the Agreement have been or will be taken duly and
     effectively.

                              (End of Article X)

                                       70
<PAGE>

                                  ARTICLE XI

                          AMENDMENTS TO THE AGREEMENT
                           AND THE LETTER OF CREDIT

          SECTION 11.01. Amendments Not Requiring Consent of Holders. Without
                         -------------------------------------------
the consent of or notice to the Holders, the Issuer and the Trustee may, with
the written consent of the Letter of Credit Bank, consent to any amendment,
change or modification of the Agreement or the Letter of Credit as may be
required (i) by the provisions of the Agreement, the Letter of Credit or this
Indenture, (ii) for the purpose of curing any ambiguity, inconsistency or formal
defect or omission in the Agreement or the Letter of Credit, (iii) in connection
with an amendment or to effect any purpose for which there could be an amendment
of this Indenture pursuant to Section 8.02 hereof, or (iv) in connection with
any other change therein which is not to the prejudice of the Trustee or the
holders of the Bonds in the judgment of the Trustee.

          SECTION 11.02. Amendments Requiring Consent of Holders. Except for the
                         ---------------------------------------
amendments, changes or modifications contemplated in Section 11.01 hereof,
neither the Issuer nor the Trustee shall consent to

          (a) any amendment, change or modification of the Agreement which would
     change the amount or times as of which Loan Payments are required to be
     paid, without the giving of notice as provided in this Section of the
     proposed amendment, change or modification and receipt of the written
     consent thereto of the Letter of Credit Bank and the Holders of all of the
     then outstanding Bonds, or

          (b) any other amendment, change or modification of the Agreement or
     the Letter of Credit without the giving of notice as provided in this
     Section of the proposed amendment, change or modification and receipt of
     the written consent thereto of the Letter of Credit Bank and the Holders of
     not less than a majority in aggregate principal amount of the Bonds then
     outstanding.

The consent of the Holders shall be obtained as provided in Section 8.03 hereof
with respect to Supplemental Indentures.

          If the Issuer and the Borrower shall request at any time the consent
of the Trustee to any proposed amendment, change or modification of the
Agreement or the Letter of Credit contemplated in subparagraphs (a) or (b), upon
being indemnified satisfactorily with respect to expenses, the Trustee shall
cause notice of the proposed amendment, change or modification to be provided in
the manner which is required by Section 8.03 hereof with respect to notice of
Supplemental Indentures. This notice shall set forth briefly the nature of the
proposed amendment, change or modification and shall state that copies of the
instrument or document embodying it are on file at the principal corporate trust
office of the Trustee for inspection by all Holders.

                              (End of Article XI)

                                       71
<PAGE>

                                  ARTICLE XII

                              MEETINGS OF HOLDERS

          SECTION 12.01. Purposes of Meetings. A meeting of Holders, or of the
                         --------------------
Holders of any series of Bonds, may be called at any time and from time to time
pursuant to the provisions of this Article XII, to the extent relevant to the
Holders of all of the Bonds or of Bonds of that series, as the case may be, to
take any action (i) authorized to be taken by or on behalf of the Holders of any
specified aggregate principal amount of the Bonds, or of that series, (ii) under
any provision of this Indenture or (iii) authorized or permitted by law.

          SECTION 12.02. Call of Meetings. The Trustee may call at any time a
                         ----------------
meeting of Holders pursuant to Section 12.01 to be held at any reasonable time
and place the Trustee shall determine. Notice of such meeting, setting forth the
time, place and generally the subject thereof, shall be mailed by first class
mail, postage prepaid, not fewer than 15 nor more than 90 days prior to the date
of the meeting to the Holders at their addresses as they appear on the Register
on the fifteenth day preceding such mailing, which fifteenth day preceding the
mailing, shall be the record date for the meeting.

          If at any time the Issuer, the Borrower, the Letter of Credit Bank or
the Holders of at least twenty-five percent in aggregate principal amount of the
Bonds, or if applicable, the affected series of Bonds, then outstanding, shall
have requested the Trustee to call a meeting of Holders, by written request
setting forth the purpose of the meeting, and the Trustee shall not have mailed
the notice of the meeting within 20 days after receipt of the request, then the
Issuer, the Borrower, the Letter of Credit Bank or the Holders of Bonds in the
amount above specified may determine the time and the place of the meeting and
may call the meeting to take any action authorized in Section 12.01, by mailing
notice thereof as provided above.

          Any meetings of Holders, or the Holders of any series of Bonds
affected by a particular matter, shall be valid without notice, if the Holders
of all Bonds, or if applicable, the affected series of Bonds, then outstanding
are present in person or by proxy, or if notice is waived before or after the
meeting by the Holders of all Bonds, or if applicable, the affected series of
Bonds, outstanding who were not so present at the meeting, and if the Issuer,
the Borrower, the Letter of Credit Bank and the Trustee are either present by
duly authorized representatives or have waived notice, before or after the
meeting.

          SECTION 12.03. Voting. To be entitled to vote at any meeting of
                         ------
Holders, a Person shall (a) be a Holder of one or more outstanding Bonds, or if
applicable, of the affected series of Bonds, as of the record date for the
meeting as determined above, or (b) be a person appointed by an instrument or
document in writing as proxy by a Person who is a Holder as of the record date
for the meeting, of one or more outstanding Bonds or, if applicable, of the
affected series of Bonds. Each Holder or proxy shall be entitled to one vote for
each $5,000 principal amount of Bonds held or represented by it.

          The vote upon any resolution submitted to any meeting of Holders shall
be by written ballots on which shall be subscribed the signatures of the Holders
of Bonds or of their

                                       72
<PAGE>

representatives by proxy and the identifying number or numbers of the Bonds held
or represented by them.

          SECTION 12.04. Meetings. Notwithstanding any other provision of this
                         --------
Indenture, the Trustee may make any reasonable regulations which it may deem to
be advisable for meetings of Holders, with regard to

          (a)  proof of the holding of Bonds and of the appointment of proxies,

          (b)  the appointment and duties of inspectors of votes,

          (c)  recordation of the proceedings of those meetings,

          (d)  the execution, submission and examination of proxies and other
     evidence of the right to vote, and

          (e)  any other matters concerning the conduct, adjournment or
     reconvening of meetings which it may think fit.

          The Trustee shall appoint a temporary chair of the meeting by an
instrument or document in writing, unless the meeting shall have been called by
the Issuer, the Borrower, the Letter of Credit Bank or by the Holders, as
provided in Section 12.02, in which case the Issuer, the Letter of Credit Bank,
the Borrower or the Holders calling the meeting, as the case may be, shall
appoint a temporary chair in like manner. A permanent chair and a permanent
secretary of the meeting shall be elected by vote of the Holders of a majority
in principal amount of the Bonds represented at the meeting and entitled to
vote.

          The only Persons who shall be entitled to be present or to speak at
any meeting of Holders shall be the Persons entitled to vote at the meeting and
their counsel, any representatives of the Trustee or Registrar and their
counsel, any representatives of the Issuer and its counsel, any representatives
of the Borrower and its counsel and any representatives of the Letter of Credit
Bank and its counsel.

          SECTION 12.05. Miscellaneous. Nothing contained in this Article XII
                         -------------
shall be deemed or construed to authorize or permit any hindrance or delay in
the exercise of any right or rights conferred upon or reserved to the Trustee or
to the Holders under any of the provisions of this Indenture or of the Bonds by
reason of any call of a meeting of Holders or any right conferred expressly or
impliedly hereunder to make a call.

                             (End of Article XII)

                                       73
<PAGE>

                                 ARTICLE XIII

                                 MISCELLANEOUS

          SECTION 13.01. Limitation of Rights. With the exception of rights
                         --------------------
conferred expressly in this Indenture, nothing expressed or mentioned in or to
be implied from this Indenture or the Bonds is intended or shall be construed to
give to any Person other than the parties hereto, the Registrar, the
Authenticating Agents, the Paying Agents, the Borrower, the Remarketing Agent,
the Letter of Credit Bank and the Holders of the Bonds any legal or equitable
right, remedy, power or claim under or with respect to this Indenture or any
covenants, agreements, conditions and provisions contained herein. This
Indenture and all of those covenants, agreements, conditions and provisions are
intended to be, and are, for the sole and exclusive benefit of the parties
hereto, the Borrower, the Remarketing Agent, the Letter of Credit Bank, the
Registrar, the Authenticating Agents, the Paying Agents and the Holders of the
Bonds, as provided herein.

          SECTION 13.02. Severability. In case any section or provision of this
                         ------------
Indenture, or any covenant, agreement, stipulation, obligation, act or action,
or part thereof, made, assumed, entered into or taken under this Indenture, or
any application thereof, is held to be illegal or invalid for any reason, or is
inoperable at any time, that illegality, invalidity or inoperability shall not
affect the remainder thereof or any other section or provision of this Indenture
or any other covenant, agreement, stipulation, obligation, act or action, or
part thereof, made, assumed, entered into or taken under this Indenture, all of
which shall be construed and enforced at the time as if the illegal, invalid or
inoperable portion were not contained therein.

          Any illegality, invalidity or inoperability shall not affect any
legal, valid and operable section, provision, covenant, agreement, stipulation,
obligation, act, action, part or application, all of which shall be deemed to be
effective, operative, made, assumed, entered into or taken in the manner and to
the full extent permitted by law from time to time.

          SECTION 13.03. Notices. Except as provided in Section 7.02 hereof, it
                         -------
shall be sufficient service or giving of any notice, request, complaint, demand
or other instrument or document, if it is duly mailed by first-class mail, or
delivered. Notices to the Issuer, the Letter of Credit Bank, the Remarketing
Agent, the Borrower and the Trustee shall be addressed as follows:

          (a) If to the Issuer, at Business Finance Authority of the State of
     New Hampshire, 14 Dixon Avenue, Suite 101, Concord, New Hampshire, 03301,
     Attn: Executive Director;
     ----

          (b) If to the Borrower, at Apex Telecommunications Manufacturing,
     Inc., 12 Simon Street, Nashua, New Hampshire, 03060, Attn: Ms. Jill
                                                          ----
     Dinsmore;

          (c) If to the Letter of Credit Bank, at The Huntington National Bank,
     Huntington Center, 41 South High Street, Columbus, Ohio 43215, Attn:
     International Division - Letter of Credit Department;

                                       74
<PAGE>

          (d) If to the Remarketing Agent, at Huntington Capital Corp., 41 South
     High Street - HC0914, Columbus, Ohio 43215, Attn: John Crotty; and
                                                 ----

          (e) If to the Trustee, at The Huntington National Bank, 41 South High
     Street - HC1112, Columbus, Ohio 43215; Attn: Corporate Trust Department.
                                            ----

Duplicate copies of each notice, request, complaint, demand or other instrument
or document given hereunder by the Issuer, the Trustee, the Letter of Credit
Bank, the Remarketing Agent, or the Borrower to one or more of the others also
shall be given to all of the others. The foregoing parties may designate, by
notice given hereunder, any further or different addresses to which any
subsequent notice, request, complaint, demand or other instrument or document
shall be sent. The Trustee shall designate, by notice to the Issuer, the
Borrower, the Letter of Credit Bank and the Remarketing Agent the addresses to
which notices or copies thereof shall be sent to the Registrar, the
Authenticating Agents and the Paying Agents.

          In connection with any notice mailed pursuant to the provisions of
this Indenture, a certificate of the Trustee, the Issuer, the Registrar, the
Authenticating Agents, the Letter of Credit Bank, the Remarketing Agent, the
Borrower or the Holders of the Bonds, whichever or whoever mailed that notice,
that the notice was so mailed shall be conclusive evidence of the proper mailing
of the notice.

          SECTION 13.04. Suspension of Mail. If because of the suspension of
                         ------------------
delivery of first class mail or, for any other reason, the Trustee or any other
Person shall be unable to mail by the required class of mail any notice required
to be mailed by the provisions of this Indenture, the Trustee or any other
Person shall give such notice in such other manner as in the judgment of the
Trustee or such Person shall most effectively approximate mailing thereof, and
the giving of that notice in that manner for all purposes of this Indenture
shall be deemed to be in compliance with the requirement for the mailing
thereof. Except as otherwise provided herein, the mailing of any notice shall be
deemed complete upon deposit of that notice in the mail and the giving of any
notice by any other means of delivery shall be deemed complete upon receipt of
the notice by the delivery service.

          SECTION 13.05. Reserved.
                         --------

          SECTION 13.06. Instruments of Holders. Any writing, including without
                         ----------------------
limitation, any consent, request, direction, approval, objection or other
instrument or document, required under this Indenture to be executed by any
Holder may be in any number of concurrent writings of similar tenor and may be
executed by that Holder in person or by an agent or attorney appointed in
writing. Proof of (i) the execution of any writing, including without
limitation, any consent, request, direction, approval, objection or other
instrument or document, (ii) the execution of any writing appointing any agent
or attorney, and (iii) the ownership of Bonds, shall be sufficient for any of
the purposes of this Indenture, if made in the following manner, and if so made,
shall be conclusive in favor of the Trustee with regard to any action taken
thereunder, namely:

          (a) The fact and date of the execution by any person of any writing
     may be proved by the certificate of any officer in any jurisdiction, who
     has power by law to take acknowledgments within the jurisdiction, that the
     person signing the writing

                                       75
<PAGE>

     acknowledged that execution before that officer, or by affidavit of any
     witness to that execution;

          (b) The fact of ownership of Bonds shall be proved by the Register
     maintained by the Registrar.

          Nothing contained herein shall be construed to limit the Trustee to
the foregoing proof, and the Trustee may accept any other evidence of the
matters stated therein which it deems to be sufficient. Any writing, including
without limitation, any consent, request, direction, approval, objection or
other instrument or document, of the Holder of any Bond shall bind every further
Holder of the same Bond, with respect to anything done or suffered to be done by
the Issuer, the Trustee, the Letter of Credit Bank, the Remarketing Agent, the
Registrar or any Paying Agent or Authenticating Agent pursuant to that writing.

          SECTION 13.07. Priority of this Indenture. This Indenture shall be
                         --------------------------
superior to any liens which may be placed upon the Revenues or any other funds
or accounts created pursuant to this Indenture.

          SECTION 13.08. Extent of Covenants; No Personal Liability. All
                         ------------------------------------------
covenants, stipulations, obligations and agreements of the Issuer contained in
this Indenture are and shall be deemed to be covenants, stipulations,
obligations and agreements of the Issuer to the full extent authorized by the
Act and permitted by the Constitution of the State. No covenant, stipulation,
obligation or agreement of the Issuer contained in this Indenture shall be
deemed to be a covenant, stipulation, obligation or agreement of any present or
future member of the Issuing Authority, officer, agent or employee of the Issuer
in other than that person's official capacity. Neither the members of the
Issuing Authority of the Issuer nor any official executing the Bonds, this
Indenture, the Agreement or any amendment or supplement hereto or thereto shall
be liable personally on the Bonds or be subject to any personal liability or
accountability by reason of the issuance or execution hereunder or thereof.

          SECTION 13.09. Binding Effect. This Indenture shall inure to the
                         --------------
benefit of and shall be binding upon the Issuer and the Trustee and their
respective successors and assigns, subject, however, to the limitations
contained herein.

          SECTION 13.10. Counterparts. This Indenture may be executed in any
                         ------------
number of counterparts, each of which shall be regarded as an original and all
of which shall constitute but one and the same instrument.

          SECTION 13.11. Governing Law. This Indenture and the Bonds shall be
                         -------------
deemed to be contracts made under the laws of the State and for all purposes
shall be governed by and construed in accordance with the laws of the State,
except to the extent that New Hampshire conflict of law rules would require the
substantive rules of law of any other jurisdiction to apply.

                             (End of Article XIII)

                                       76
<PAGE>

          IN WITNESS WHEREOF, the Issuer and the Trustee, as Trustee and
Registrar, have executed this Trust Indenture all as of the date first above
written.

                                               BUSINESS FINANCE AUTHORITY OF THE
                                               STATE OF NEW HAMPSHIRE

                                               By: /s/ Edward F. Caron
                                                  ------------------------------
                                               Title: Chairman
                                                     ---------------------------

                                               THE HUNTINGTON NATIONAL BANK,
                                               as Trustee and Registrar

                                               By: /s/ Ruth F. Sowers
                                                  ------------------------------
                                                       Authorized Signer

                                       77
<PAGE>

                                   EXHIBIT A

                              PROJECT DESCRIPTION
                              -------------------

          The acquisition, construction, installation, renovation and equipping
of improvements to a facility for the manufacturing of products for the
telecommunications industry, to be located at 12 Simon Street, Nashua, New
Hampshire.

                                      A-1
<PAGE>

                                   EXHIBIT B

                                 PROJECT SITE
                                 ------------

               [Legal description from Borrower to be inserted]

                                      B-1
<PAGE>

                                   EXHIBIT C

                             SERIES 1999 BOND FORM
                             ---------------------
R-                                                                             $

                           UNITED STATES OF AMERICA
                            STATE OF NEW HAMPSHIRE
           BUSINESS FINANCE AUTHORITY OF THE STATE OF NEW HAMPSHIRE
                 ADJUSTABLE RATE DEMAND INDUSTRIAL DEVELOPMENT
                          REVENUE BONDS, SERIES 1999
             (APEX TELECOMMUNICATIONS MANUFACTURING, INC. PROJECT)

             Maturity Date           Dated:           CUSIP Number
           September 1, 2019

                  The BUSINESS FINANCE AUTHORITY OF THE STATE OF NEW HAMPSHIRE
(the "Issuer"), a body corporate and politic as an agency of the State of New
Hampshire, for value received, promises to pay to ______________ or registered
assigns, but solely from the sources and in the manner referred to herein, the
principal amount of

                            ______________ DOLLARS

on the aforesaid Maturity Date, unless this Series 1999 Bond is called for
earlier redemption, and to pay from those sources interest thereon at the rate
described below, payable on November 1, 1999 and thereafter on the first
Business Day of each month (an "Interest Payment Date"), until the principal
amount is paid or duly provided for. While this Series 1999 Bond bears interest
at the Weekly Interest Rate, interest shall be calculated on the basis of a 365-
day year or 366-day year, as applicable, for the number of days actually
elapsed; otherwise, interest shall be calculated on the basis of a 360-day year
and twelve 30-day months. The term "Business Day", as used herein, means a day
of the year, other than (a) a Saturday; (b) a Sunday; (c) a day on which
commercial banks located in any city in which the principal corporate trust
office of the Trustee or the principal office of the Letter of Credit Bank is
located are required or authorized by law to remain closed; or (d) a day on
which the New York Stock Exchange is closed. This Series 1999 Bond will bear
interest from the most recent date to which interest has been paid or duly
provided for or, if no interest has been paid or duly provided for, from its
date.

                  THE BOND DOES NOT CONSTITUTE AN INDEBTEDNESS OF THE STATE OF
NEW HAMPSHIRE OR OF THE ISSUER EXCEPT TO THE EXTENT PERMITTED BY NEW HAMPSHIRE
RSA 162-I. ALL AMOUNTS OWED HEREUNDER ARE PAYABLE ONLY FROM THE SOURCES PROVIDED
IN THE INDENTURE AND LOAN AGREEMENT DESCRIBED BELOW, AND NO PUBLIC FUNDS MAY BE
USED FOR THAT PURPOSE.

                                      C-1
<PAGE>

                  The principal of and any premium on this Series 1999 Bond is
payable upon presentation and surrender hereof at the principal corporate trust
office of the trustee, presently The Huntington National Bank (the "Trustee").
Interest is payable on each Interest Payment Date by check or draft mailed to
the person in whose name this Series 1999 Bond (or one or more predecessor
bonds) is registered (the "Holder") at the close of business on the Business Day
immediately preceding that Interest Payment Date (the "Regular Record Date") on
the registration books for this issue maintained by the Trustee, as Registrar,
at the address appearing therein, or, in certain circumstances, by wire transfer
as described in the Indenture. Any interest which is not timely paid or duly
provided for shall cease to be payable to the Holder hereof (or of one or more
predecessor bonds) as of the Regular Record Date, and shall be payable to the
Holder hereof (or of one or more predecessor bonds) at the close of business on
a Special Record Date to be fixed by the Trustee for the payment of that overdue
interest. Notice of the Special Record Date shall be mailed to Holders not less
than ten days prior thereto. The principal of and interest on this Series 1999
Bond are payable in lawful money of the United States of America, without
deduction for the services of the paying agent.

                  The Series 1999 Bonds shall not constitute the personal
obligation, either jointly or severally, of any member of the Board of Directors
of, or any officer, employee or agent of, the Issuer.

                  This Series 1999 Bond shall not be entitled to any security or
benefit under the Indenture or be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed.

                              GENERAL PROVISIONS

                  This Series 1999 Bond is one of a duly authorized issue of
Adjustable Rate Demand Industrial Development Revenue Bonds, Series 1999 (Apex
Telecommunications Manufacturing, Inc. Project) (the "Series 1999 Bonds")
issuable under the Trust Indenture dated as of September 1, 1999 (the
"Indenture") between the Issuer and the Trustee, aggregating in principal amount
$3,500,000 and issued for the purpose of financing costs of the Project (the
"Project"), as defined in the Loan Agreement dated as of September 1, 1999 (the
"Agreement"), between the Issuer and Apex Telecommunications Manufacturing,
Inc., a New Hampshire corporation (the "Borrower"). The Series 1999 Bonds,
together with any bonds which may be issued on a parity therewith under the
Indenture (collectively, the "Bonds"), are special obligations of the Issuer,
issued or to be issued under and are to be secured and entitled equally and
ratably to the protection given by the Indenture. The Series 1999 Bonds are
issued pursuant to the Constitution of the State of New Hampshire and to the
laws of such State, particularly RSA 162-I, and in accordance with a resolution
duly adopted by the Board of Directors of the Issuer.

                  Reference is made to the Indenture for a more complete
description of the Project, the provisions, among others, with respect to the
nature and extent of the security for the Bonds, the rights, duties and
obligations of the Issuer, the Trustee and the Holders of the Bonds, and the
terms and conditions upon which the Bonds are issued and secured. Each Holder
assents, by its acceptance hereof, to all of the provisions of the Indenture.

                                      C-2
<PAGE>

                  Pursuant to the Agreement, the Borrower is required to make
payments to the Trustee in the amounts and at the times necessary to pay the
principal, premium, if any, and interest (the "Bond Service Charges") on the
Bonds. In the Indenture, the Issuer has assigned to the Trustee, to provide for
the payment of the Bond Service Charges on the Bonds, the Issuer's right, title
and interest in and to the Agreement, except for Unassigned Issuer's Rights as
defined in the Agreement.

                  Pursuant to the Agreement, the Borrower has caused to be
issued and delivered to the Trustee by The Huntington National Bank, Columbus,
Ohio (the "Letter of Credit Bank"), an irrevocable letter of credit (the "Letter
of Credit"), pursuant to which the Trustee is entitled to draw up to (a) the
principal amount of the Series 1999 Bonds outstanding to enable the Trustee to
pay (i) the principal amount of the Series 1999 Bonds when due at maturity or
upon redemption or acceleration on the occurrence of an event of default, and
(ii) an amount equal to the principal portion of the purchase price of any
Series 1999 Bonds tendered for purchase by the Holders thereof, plus (b) the
amount of interest due on the Series 1999 Bonds (including any interest portion
of the purchase price of Series 1999 Bonds when purchased pursuant to the
Indenture) but not to exceed 56 days' maximum accrued interest (at an assumed
rate of 12% per annum) to enable the Trustee to pay interest due on the Series
1999 Bonds. To provide for the issuance of the Letter of Credit, the Borrower
has entered into a Reimbursement Agreement, dated as of September 1, 1999 (the
"Letter of Credit Agreement"), with the Letter of Credit Bank, pursuant to which
the Borrower is obligated to reimburse the Letter of Credit Bank for all
drawings made under the Letter of Credit. The Letter of Credit shall expire,
subject to provisions for earlier termination or for extension, on September15,
2004.

                  Subject to the provisions of the Indenture and the Agreement,
the Letter of Credit may be replaced from time to time by another letter of
credit (an "Alternate Letter of Credit"), in which case the term "Letter of
Credit Bank" shall mean the commercial bank or savings and loan association
issuing the Alternate Letter of Credit and the term "Letter of Credit" shall
mean the Alternate Letter of Credit.

                  Copies of the Indenture, the Agreement, the Letter of Credit
and the Letter of Credit Agreement are on file in the principal corporate trust
office of the Trustee.

                  This Series 1999 Bond is a limited obligation of the Issuer,
and the Bond Service Charges on the Series 1999 Bonds are payable solely from
the Revenues, as defined and as provided in the Indenture (being, generally, the
amounts payable under the Agreement in payment of the Loan Payments, as defined
in the Agreement, any unexpended proceeds of the Series 1999 Bonds and amounts
deposited in the Bond Fund as defined and provided for in the Indenture), and
are an obligation of the Issuer only to the extent of the Revenues.

                  The Bonds, and the interest payable thereon, do not represent
or constitute a debt of the Issuer within the meaning of the provisions of the
Constitution or statutes of the State of New Hampshire or a pledge of the faith
and credit of the Issuer. The Bonds, as to principal, premium, if any, and
interest, are not an obligation of the State of New Hampshire, or of any
political subdivision thereof, and are payable solely and only from the payments
to be made under the Agreement, provided that no public funds may be used for
that purpose. No covenant or agreement contained in the Bonds or the Agreement
shall be deemed to be a covenant or

                                      C-3
<PAGE>

agreement of any member of the Board of Directors of the Business Finance
Authority of the State of New Hampshire or of any officer or employee of the
Issuer in his or her individual capacity, nor shall any officer or employee of
the Issuer executing the Bonds be liable personally on the Bonds or be subject
to any personal liability or accountability by reason of the issuance of the
Bonds.

                  The Series 1999 Bonds are issuable only as fully registered
bonds in the denominations of $100,000 and any integral multiple of $5,000 in
excess thereof and are exchangeable for Series 1999 Bonds of other authorized
denominations in equal aggregate principal amounts at the office of the
Registrar specified on the face hereof, but only in the manner and subject to
the limitations provided in the Indenture. This Series 1999 Bond is transferable
at the office of the Registrar, by the Holder in person or by his attorney, duly
authorized in writing, upon presentation and surrender hereof to the Registrar.
The Registrar is not required to transfer or exchange (i) any Series 1999 Bond
during a period beginning at the opening of business 15 days before the day of
the mailing of a notice of redemption of Series 1999 Bonds and ending at the
close of business on the day of such mailing, or (ii) any Series 1999 Bonds so
selected for redemption in whole or in part.

                  The Indenture permits certain amendments or supplements to the
Agreement, the Indenture and the Letter of Credit not prejudicial to the Holders
to be made with the consent of the Letter of Credit Bank but without the consent
of or notice to the Holders, and other amendments or supplements thereto to be
made with the consent of the Letter of Credit Bank and the Holders of not less
than a majority in aggregate principal amount of the Series 1999 Bonds then
outstanding.

                        DETERMINATION OF INTEREST RATE

                  From the date of initial delivery of the Series 1999 Bonds
through the initial Interest Rate Determination Date, and thereafter for each
succeeding weekly period, except as provided below, the interest rate on the
Series 1999 Bonds shall be the Weekly Interest Rate for such period as
established initially on the date of delivery of the Series 1999 Bonds and
thereafter on the Interest Rate Determination Date immediately preceding the
commencement of such weekly period.

                  On December 1, 1999, and on any Interest Period Reset Date
thereafter, the interest rate on the Series 1999 Bonds may be converted to a
different Interest Rate Mode upon receipt by the Trustee of a direction from the
Borrower, with the prior written consent of the Letter of Credit Bank, not less
than 45 days prior to such Interest Period Reset Date, to convert the interest
rate on the Series 1999 Bonds to an Interest Rate Mode other than the Interest
Rate Mode then in effect. Such direction to convert the interest rate on the
Series 1999 Bonds to a different Interest Rate Mode shall be accompanied by (a)
evidence satisfactory to the Trustee that the Letter of Credit Termination Date
is no earlier than the date which is at least 15 days beyond the end of the
Interest Rate Period to commence on the applicable Interest Period Reset Date
and (b) an opinion of Bond Counsel (as defined in the Indenture) selected by the
Borrower delivered to the Issuer, the Trustee, the Letter of Credit Bank and the
Remarketing Agent, stating that such conversion to the specified Interest Rate
Mode will not adversely affect the exclusion of the interest on the Series 1999
Bonds from gross income for federal income tax purposes.

                                      C-4
<PAGE>

                  "Five Year Interest Rate" means (a) the rate of interest per
annum determined by the Remarketing Agent, on the Interest Rate Determination
Date immediately preceding the applicable Interest Rate Adjustment Date, to be
the interest rate necessary during the Interest Rate Period of five years
commencing on the applicable Interest Rate Adjustment Date in the judgment of
the Remarketing Agent (taking into consideration current transactions and
comparable securities in which the Remarketing Agent is involved or of which it
is aware and prevailing financial market conditions) to produce a par bid for
the Series 1999 Bonds on the Interest Rate Determination Date or (b) in the
event that the Remarketing Agent has been removed or has resigned and no
successor has been appointed, or the Remarketing Agent has failed to determine
the Five Year Interest Rate for whatever reason, or the Five Year Interest Rate
cannot be determined pursuant to clause (a) for whatever reason, the interest
rate then in effect with respect to the Series 1999 Bonds, without adjustment;
provided that in no event shall the Five Year Interest Rate exceed 12% per
annum.

                  "Fixed Interest Rate" means the fixed rate of interest per
annum determined by the Remarketing Agent, on the Interest Rate Determination
Date immediately preceding the applicable Interest Period Reset Date, to be the
interest rate necessary in the judgment of the Remarketing Agent (taking into
consideration current transactions in which the Remarketing Agent is involved or
of which it is aware and prevailing financial market conditions) to produce a
par bid for the Series 1999 Bonds on the Interest Rate Determination Date;
provided that in no event shall the Fixed Interest Rate exceed 12% per annum.

                  "Interest Period Reset Date" means the Interest Rate
Adjustment Date on which the interest rate on the Series 1999 Bonds converts
from the Interest Rate Mode applicable to the Series 1999 Bonds prior to such
date to a new Interest Rate Mode. An Interest Period Reset Date shall be the
first day of a month unless the interest rate on the Series 1999 Bonds is
converting to the Weekly Interest Rate, in which case the Interest Period Reset
Date shall be the first Thursday of the month.

                  "Interest Rate Adjustment Date" means any date on which the
interest rate on the Series 1999 Bonds is adjusted, either as the result of the
conversion of the interest rate on the Series 1999 Bonds to a different Interest
Rate Mode, or by adjustment of the interest rate on the Series 1999 Bonds within
the applicable Interest Rate Mode. An Interest Rate Adjustment Date shall be the
first day of a month unless the Series 1999 Bonds bear interest at the Weekly
Interest Rate, in which case the Interest Rate Adjustment Date shall be Thursday
of each week.

                  "Interest Rate Determination Date" means (i) with respect to
the Three Month Interest Rate, the Six Month Interest Rate, the One Year
Interest Rate, the Five Year Interest Rate, the Seven Year Interest Rate and the
Fixed Interest Rate, the twelfth Business Day preceding an Interest Rate
Adjustment Date, and (ii) with respect to the Weekly Interest Rate, not later
than 2:00 p.m. according to local time at the principal corporate trust office
of the Trustee on Wednesday of each week, or the next preceding Business Day if
such Wednesday is not a Business Day.

                  "Interest Rate Mode" means any of those modes of interest with
respect to the Series 1999 Bonds permitted by the Indenture, specifically, the
Weekly Interest Rate, the Three

                                      C-5
<PAGE>

Month Interest Rate, the Six Month Interest Rate, the One Year Interest Rate,
the Five Year Interest Rate, the Seven Year Interest Rate and the Fixed Interest
Rate.

                  "Interest Rate Period" means that period of time during which
the interest rate with respect to the Series 1999 Bonds has been determined by
the Remarketing Agent, commencing on the applicable Interest Rate Adjustment
Date, and terminating on the day immediately preceding the following Interest
Rate Adjustment Date.

                  "One Year Interest Rate" means (a) the rate of interest per
annum determined by the Remarketing Agent, on the Interest Rate Determination
Date immediately preceding the applicable Interest Rate Adjustment Date, to be
the interest rate necessary during the Interest Rate Period of one year
commencing on the applicable Interest Rate Adjustment Date in the judgment of
the Remarketing Agent (taking into consideration current transactions and
comparable securities in which the Remarketing Agent is involved or of which it
is aware and prevailing financial market conditions) to produce a par bid for
the Series 1999 Bonds on the Interest Rate Determination Date or (b) in the
event that the Remarketing Agent has been removed or has resigned and no
successor has been appointed, or the Remarketing Agent has failed to determine
the One Year Interest Rate for whatever reason, or the One Year Interest Rate
cannot be determined pursuant to clause (a) for whatever reason, the interest
rate then in effect with respect to the Series 1999 Bonds, without adjustment;
provided that in no event shall the One Year Interest Rate exceed 12% per annum.

                  "Seven Year Interest Rate" means (a) the rate of interest per
annum determined by the Remarketing Agent, on the Interest Rate Determination
Date immediately preceding the applicable Interest Rate Adjustment Date, to be
the interest rate necessary during the Interest Rate Period of seven years
commencing on the applicable Interest Rate Adjustment Date in the judgment of
the Remarketing Agent (taking into consideration current transactions and
comparable securities in which the Remarketing Agent is involved or of which it
is aware and prevailing financial market conditions) to produce a par bid for
the Series 1999 Bonds on the Interest Rate Determination Date or (b) in the
event that the Remarketing Agent has been removed or has resigned and no
successor has been appointed, or the Remarketing Agent has failed to determine
the Seven Year Interest Rate for whatever reason, or the Seven Year Interest
Rate cannot be determined pursuant to clause (a) for whatever reason, the
interest rate then in effect with respect to the Series 1999 Bonds, without
adjustment; provided that in no event shall the Seven Year Interest Rate exceed
12% per annum.

                  "Six Month Interest Rate" means (a) the rate of interest per
annum determined by the Remarketing Agent, on the Interest Rate Determination
Date immediately preceding the applicable Interest Rate Adjustment Date, to be
the interest rate necessary during the Interest Rate Period of six months
commencing on the applicable Interest Rate Adjustment Date in the judgment of
the Remarketing Agent (taking into consideration current transactions and
comparable securities in which the Remarketing Agent is involved or of which it
is aware and prevailing financial market conditions) to produce a par bid for
the Series 1999 Bonds on the Interest Rate Determination Date or (b) in the
event that the Remarketing Agent has been removed or has resigned and no
successor has been appointed, or the Remarketing Agent has failed to determine
the Six Month Interest Rate for whatever reason, or the Six Month Interest Rate
cannot be determined pursuant to clause (a) for whatever reason, the interest
rate then in

                                      C-6
<PAGE>

effect with respect to the Series 1999 Bonds, without adjustment; provided that
in no event shall the Six Month Interest Rate exceed 12% per annum.

                  "Three Month Interest Rate" means (a) the rate of interest per
annum determined by the Remarketing Agent, on the Interest Rate Determination
Date immediately preceding the applicable Interest Rate Adjustment Date, to be
the interest rate necessary during the Interest Rate Period of three months
commencing on the applicable Interest Rate Adjustment Date in the judgment of
the Remarketing Agent (taking into consideration current transactions and
comparable securities in which the Remarketing Agent is involved or of which it
is aware and prevailing financial market conditions) to produce a par bid for
the Series 1999 Bonds on the Interest Rate Determination Date or (b) in the
event that the Remarketing Agent has been removed or has resigned and no
successor has been appointed, or the Remarketing Agent has failed to determine
the Three Month Interest Rate for whatever reason, or the Three Month Interest
Rate cannot be determined pursuant to clause (a) for whatever reason, the
interest rate then in effect with respect to the Series 1999 Bonds, without
adjustment; provided that in no event shall the Three Month Interest Rate exceed
12% per annum.

                  "Weekly Interest Rate" means (a) the rate of interest per
annum determined by the Remarketing Agent, on the Interest Rate Determination
Date immediately preceding the applicable Interest Rate Adjustment Date, to be
the interest rate necessary during the Interest Rate Period of one week
commencing on the applicable Interest Rate Adjustment Date in the judgment of
the Remarketing Agent (taking into consideration current transactions and
comparable securities in which the Remarketing Agent is involved or of which it
is aware and prevailing financial market conditions) to produce a par bid for
the Series 1999 Bonds on the Interest Rate Determination Date or (b) in the
event that the Remarketing Agent has been removed or has resigned and no
successor has been appointed, or the Remarketing Agent has failed to determine
the Weekly Interest Rate for whatever reason, or the Weekly Interest Rate cannot
be determined pursuant to clause (a) for whatever reason, the interest rate then
in effect with respect to the Series 1999 Bonds, without adjustment; provided
that in no event shall the Weekly Interest Rate exceed 12% per annum.

                  Any calculation of the interest rate to be borne by the Series
1999 Bonds shall be rounded to the nearest one-hundredth of one percent (0.01%).
The computation of the interest rate on the Series 1999 Bonds by the Remarketing
Agent or the Trustee, as applicable, shall be binding and conclusive upon the
Holders of the Series 1999 Bonds, absent manifest error.

                  If the interest rate on the Series 1999 Bonds is converted to
a different Interest Rate Mode, at least 30 days prior to an Interest Period
Reset Date, the Trustee shall notify the Holders of all outstanding Series 1999
Bonds by telephone, immediately confirmed by first class mail, that upon such
date, all Series 1999 Bonds shall be converted to a different Interest Rate
Mode, which Interest Rate Mode shall be specified, and that all such Series 1999
Bonds shall be subject to a mandatory tender pursuant to Section 2.06 of the
Indenture.

                                 TENDER OPTION

                  (a) Tender Option While Series 1999 Bonds Bear Interest in an
                      ---------------------------------------------------------
Interest Rate Mode Other Than the Weekly Interest Rate. While the Series 1999
------------------------------------------------------
Bonds bear interest at the

                                      C-7
<PAGE>

Three Month Interest Rate, the Six Month Interest Rate, the One Year Interest
Rate, the Five Year Interest Rate or the Seven Year Interest Rate, on each
Interest Rate Adjustment Date through and including the Interest Rate Adjustment
Date next preceding the termination date of the Letter of Credit (a "Bond
Purchase Date"), each Holder may tender for purchase Series 1999 Bonds owned by
such Holder, as more fully provided in, and subject to the terms, conditions and
restrictions contained in the Indenture. Each Holder has the option to tender
for purchase on such Bond Purchase Date, at 100% of the principal amount thereof
plus accrued interest to the purchase date, all of the Series 1999 Bonds (so
long as such Series 1999 Bonds have not previously been selected for redemption)
owned by such Holder, or, if such Holder owns more than $100,000 of the Series
1999 Bonds, such lesser principal amount (in denominations of $100,000 or any
integral multiple of $5,000 above $100,000) as such Holder may specify in the
Instructions to Sell annexed hereto, so long as such Holder, following the Bond
Purchase Date, retains Series 1999 Bonds in the minimum amount of $100,000. To
exercise such option, the Holder shall (1) no later than 11:00 a.m. according to
the local time at the principal corporate trust office of the Trustee on the
eighth Business Day prior to the Bond Purchase Date, give notice to the Trustee
by telephone, telegraph or in writing, which states (i) the name and address of
the Holder, (ii) the principal amount of the Series 1999 Bonds to be purchased,
and (iii) that the Series 1999 Bonds are to be purchased on such Bond Purchase
Date pursuant to the terms of the Indenture, and (2) no later than 11:00 a.m.
according to the local time at the principal corporate trust office of the
Trustee on the fifth Business Day preceding such Bond Purchase Date, deliver to
the principal corporate trust office of the Trustee the Series 1999 Bonds to be
purchased, with the Instructions to Sell annexed thereto properly completed and
executed. If less than all of a Series 1999 Bond so delivered is to be
purchased, the Trustee shall, at the cost of the Holder, pursuant to the
Indenture, authenticate one or more Series 1999 Bonds, registered in the name of
such Holder, having the aggregate principal amount being retained by such
Holder, and shall deliver such authenticated Series 1999 Bond or Series 1999
Bonds to such Holder. The purchase price of any Series 1999 Bonds duly tendered
shall be paid to the tendering Holders thereof solely from remarketing proceeds
or, to the extent remarketing proceeds are unavailable, pursuant to a draw on
the Letter of Credit.

                  (b) Tender Option While Series 1999 Bonds Bear Interest at the
                      ----------------------------------------------------------
Weekly Interest Rate. While the Series 1999 Bonds bear interest at the Weekly
--------------------
Interest Rate, each Holder has the option to tender for purchase, at 100% of the
principal amount thereof plus accrued interest to the purchase date (a "Bond
Purchase Date"), all of the Series 1999 Bonds (so long as such Series 1999 Bonds
have not previously been selected for redemption) owned by such Holder, or, if
such Holder owns more than $100,000 of the Series 1999 Bonds, such lesser
principal amount (in denominations of $100,000 or any integral multiple of
$5,000 above $100,000) as such Holder may specify in the Instructions to Sell
annexed hereto, so long as such Holder, following the Bond Purchase Date,
retains Series 1999 Bonds in the minimum amount of $100,000. To exercise such
option, the Holder shall (1) give notice to the Trustee by telephone, telegraph
or in writing, which states (i) the name and address of the Holder, (ii) the
principal amount of the Series 1999 Bonds to be purchased, and (iii) the date on
which such Series 1999 Bonds are to be purchased, which Bond Purchase Date shall
be a Business Day not prior to the seventh (7th) day next succeeding the date of
delivery of such notice to the Trustee and, if the interest rate on the Series
1999 Bonds is to be converted from the Weekly Interest Rate to a new Interest
Rate Mode, is a date prior to the Interest Rate Adjustment Date with respect to
the new Interest Rate Mode, and (2) no later than 10:00 a.m. according to the
local time at the principal corporate trust office

                                      C-8
<PAGE>

of the Trustee on the Business Day immediately preceding the Bond Purchase Date
specified in the aforementioned notice, deliver to the principal corporate trust
office of the Trustee the Series 1999 Bonds to be purchased, with the
Instructions to Sell annexed thereto properly completed and executed. If less
than all of a Series 1999 Bond so delivered is to be purchased, the Trustee
shall, at the cost of the Holder, pursuant to the Indenture, authenticate one or
more Series 1999 Bonds, registered in the name of such Holder, having the
aggregate principal amount being retained by such Holder, and shall deliver such
authenticated Series 1999 Bond or Series 1999 Bonds to such Holder. The purchase
price of any Series 1999 Bonds duly tendered shall be paid to the tendering
Holders thereof solely from remarketing proceeds or, to the extent remarketing
proceeds are unavailable, pursuant to a draw on the Letter of Credit.

                  If Bonds are accelerated pursuant to an Event of Default under
the Indenture, then the Bond Purchase Date shall be deemed to be the date on
which the Bonds are to be retired from Eligible Funds or Letter of Credit
proceeds pursuant to such acceleration, and the ability to tender Bonds shall
not otherwise be affected or impaired by such acceleration. In addition, the
Series 1999 Bonds shall no longer be tendered for purchase upon the conversion
of the interest rate on the Series 1999 Bonds to the Fixed Interest Rate.

                  The Issuer and the Borrower, with the approval of the Letter
of Credit Bank, have appointed Huntington Capital Corp., Columbus, Ohio, as the
initial Remarketing Agent. The Borrower may, from time to time, with the
approval of the Letter of Credit Bank, remove the Remarketing Agent. Any
subsequent Remarketing Agent shall be appointed by the Borrower with the consent
of the Letter of Credit Bank.

                               MANDATORY TENDER

                  If at any time the Issuer shall convert the interest rate on
the Series 1999 Bonds to a different Interest Rate Mode in accordance with the
provisions of the Indenture, then on the date upon which such conversion is
effective (a "Bond Purchase Date"), all Series 1999 Bonds shall be subject to
mandatory tender by the Holders thereof. Notwithstanding such mandatory tender,
any Holder may elect to retain his Series 1999 Bonds by delivering to the
Trustee a written notice no less than ten Business Days prior to such Bond
Purchase Date which notice shall state that (a) such Holder acknowledges that
the Series 1999 Bonds are being converted to bear interest at the applicable
Interest Rate Mode, (b) unless the interest rate on the Series 1999 Bonds is
being converted to the Weekly Interest Rate, such Holder acknowledges that the
next Bond Purchase Date upon which the Series 1999 Bonds may be tendered for
purchase is the next Interest Rate Adjustment Date or, if such Series 1999 Bonds
are being converted to the Fixed Interest Rate, that such Series 1999 Bonds may
no longer be tendered for purchase, and (c) such Holder affirmatively elects to
hold his Series 1999 Bonds and receive interest at the applicable rate.

                  If at any time the Borrower shall provide for the delivery to
the Trustee of an Alternate Letter of Credit in accordance with the provisions
of the Indenture, then on the date upon which the term of such Alternate Letter
of Credit commences (the "Replacement Date" and a "Bond Purchase Date"), all
Series 1999 Bonds shall be subject to mandatory tender by the Holders thereof.
Notwithstanding such mandatory tender, any Holder may elect to retain his Series
1999 Bond by delivering to the Trustee a written notice no less than ten
Business Days

                                      C-9
<PAGE>

prior to such Bond Purchase Date which notice shall state that (a) such Holder
acknowledges that an Alternate Letter of Credit is being delivered to the
Trustee and the Letter of Credit will be replaced by such Alternate Letter of
Credit, and (b) such Holder affirmatively elects to hold his Series 1999 Bonds.

                  Series 1999 Bonds with respect to which the Trustee shall not
have received the election required by the two preceding paragraphs shall be
deemed to have been tendered whether or not the Holders thereof shall have
delivered such Series 1999 Bonds to the Trustee, and subject to the right of the
Holders of such Bonds to receive the purchase price of such Series 1999 Bonds
pursuant to the remarketing thereof or a draw on the Letter of Credit and to
receive interest accrued thereon to the date of tender thereof, such Series 1999
Bonds shall be null and void and the Trustee shall authenticate and deliver new
Series 1999 Bonds in replacement thereof pursuant to the remarketing of such
Series 1999 Bonds or the pledge of such Series 1999 Bonds to the Letter of
Credit Bank in lieu of remarketing such Series 1999 Bonds.

                                  REDEMPTION

                  In addition to the mandatory tender of Series 1999 Bonds as
described above under "TENDER OPTION", the Series 1999 Bonds are subject to
redemption prior to stated maturity pursuant to first class mailed notice
thereof by the Trustee at least 30 days prior to the redemption date, as
follows:

                  While the Series 1999 Bonds bear interest at the Weekly
Interest Rate, the Series 1999 Bonds are also subject to redemption by the
Issuer (at the direction of the Borrower) prior to maturity on any Interest
Payment Date, in whole or in part at a redemption price of 100% of the principal
amount to be redeemed, plus interest accrued to the redemption date.

                  While the Series 1999 Bonds bear interest at the Three Month
Interest Rate, the Six Month Interest Rate or the One Year Interest Rate, the
Series 1999 Bonds are also subject to redemption by the Issuer (at the direction
of the Borrower) prior to maturity on any Interest Rate Adjustment Date, in
whole or in part, at a redemption price of 100% of the principal amount to be
redeemed, plus interest accrued to the redemption date.

                  While the Series 1999 Bonds bear interest at the Five Year
Interest Rate or the Seven Year Interest Rate, the Series 1999 Bonds are also
subject to redemption by the Issuer (at the direction of the Borrower) prior to
maturity on any Interest Payment Date which is at least three years following an
Interest Rate Adjustment Date, in whole or in part, at a redemption price of
100% of the principal amount to be redeemed, plus interest accrued to the
redemption date.

                  Following the Fixed Interest Rate Commencement Date (as
defined in the Indenture), the Series 1999 Bonds are also subject to redemption
by the Issuer (at the direction of the Borrower) prior to maturity in whole at
any time on or after the First Optional Redemption Date and in part on any
Interest Payment Date occurring on or after the First Optional Redemption Date,
at a redemption price equal to the following percentages of the principal amount
to be redeemed, and interest accrued to the redemption date, as follows:

                                     C-10

<PAGE>

     Redemption Date                                           Redemption Price
     ---------------                                           ----------------

     First Optional Redemption Date,
     through the following August 31                                 103%

     First Anniversary of the First
     Optional Redemption Date, through
     the following August 31                                         102

     Second Anniversary of the First
     Optional Redemption Date, through
     the following August 31                                         101

     Third Anniversary of the First
     Optional Redemption Date and thereafter                         100

          "First Optional Redemption Date" means the September 1 occurring in
the year which is a number of years after the Fixed Interest Rate Commencement
Date equal to the number of full years between the Fixed Interest Rate
Commencement Date and the maturity date of the Series 1999 Bonds, divided by
two; provided that if such quotient is not a whole number, such quotient shall
be rounded to the next higher whole number.

          2.        The Series 1999 Bonds are also subject to redemption by
the Issuer in the event of the exercise by the Borrower of its option (subject
to compliance with Section 4.03 of the Indenture) to direct that redemption upon
occurrence of any of the events described in Section 6.2 of the Agreement, (a)
at any time in whole, or (b) on any Interest Payment Date in part in the event
of condemnation of part of the Project, as provided in Section 6.2 of the
Agreement, in each case, at a redemption price of 100% of the principal amount
redeemed, plus interest accrued to the redemption date.

          3.        The Series 1999 Bonds are subject to mandatory redemption
in whole on the Interest Payment Date which next precedes a Letter of Credit
Termination Date, at a redemption price of 100% of the outstanding principal
amount thereof plus accrued interest to the redemption date unless, at least 60
days prior to any such Interest Payment Date, (a) the Letter of Credit Bank
shall have agreed to an extension or further extension of the Letter of Credit
Termination Date to a date not earlier than one year from the Letter of Credit
Termination Date being extended or maturity date of Series 1999 Bonds, whichever
is earlier, or (b) pursuant to Section 5.09 of the Indenture, the Borrower shall
have obtained and delivered to the Trustee an Alternate Letter of Credit with a
termination date not earlier than one year from the Letter of Credit Termination
Date for the Letter of Credit it replaces or the maturity date of the Series
1999 Bonds, whichever is earlier.

          4.        (i) The Series 1999 Bonds are subject to mandatory
redemption upon a Determination of Taxability, as defined in the Indenture, on
the earliest practicable date selected

                                     C-11
<PAGE>

by the Trustee, after consultation with the Borrower, but in no event later than
90 days following the Trustee's notification of the Determination of Taxability,
at a redemption price of 103% of the principal amount redeemed plus accrued
interest to the redemption date and (ii) Series 1999 Bonds are also subject to
mandatory redemption under certain circumstances, and in the manner, described
in the Letter of Credit Agreement.

          If less than all Bonds of a maturity are to be redeemed at one time,
the selection of Bonds, or portions thereof in amounts of $5,000 or any integral
multiple thereof, to be redeemed shall be made by lot by the Trustee; provided,
however, that Bonds which are held by the Letter of Credit Bank or which are
pledged to the Letter of Credit Bank shall be selected first for redemption and
provided further, that following such selection by the Trustee, each Holder of
Bonds shall hold not less than $100,000 in principal amount of Bonds. If Bonds
or portions thereof are called for redemption and if on the redemption date
moneys for the redemption thereof are held by the Trustee, thereafter those
Bonds or portions thereof to be redeemed shall cease to bear interest, and shall
cease to be secured by, and shall not be deemed to be outstanding under, the
Indenture.

          It is certified and recited that there have been performed and have
happened in regular and due form, as required by law, all acts and conditions
necessary to be done or performed by the Issuer or to have happened (i)
precedent to and in the issuing of the Series 1999 Bonds in order to make them
legal, valid and binding limited obligations of the Issuer, and (ii) precedent
to and in connection with the execution and delivery of the Indenture and the
Agreement; that payment in full for the Series 1999 Bonds has been received; and
that the Series 1999 Bonds do not exceed or violate any constitutional or
statutory limitation.

          IN WITNESS OF THE ABOVE, the Issuer has caused this Series 1999 Bond
to be executed in the name of the Issuer by the manual or facsimile signatures
of its authorized officers, as of the date shown above.

                                       BUSINESS FINANCE AUTHORITY OF THE
                                       STATE OF NEW HAMPSHIRE

                                       By:          (facsimile)
                                          -----------------------------------
                                       Title:________________________________

                                       By:          (facsimile)
                                          -----------------------------------
                                       Title:________________________________

                                     C-12
<PAGE>

          FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This Series 1999 Bond is one of the Series 1999 Bonds described in the
within-mentioned Indenture.

                                   THE HUNTINGTON NATIONAL BANK, Trustee

                                   By:________________________________________
Authentication Date:______________           Authorized Signer

                                     C-13
<PAGE>

                                  ASSIGNMENT

          For value received, the undersigned sells, assigns and transfers unto
________________________ the within Series 1999 Bond and irrevocably constitutes
and appoints _________________________ attorney to transfer that Series 1999
Bond on the books kept for registration thereof, with full power of substitution
in the premises.

Dated:__________________                ________________________________________
                                                       Signature

Signature Guaranteed:

_________________________________

NOTICE: The assignor's signature to this assignment must correspond with the
name as it appears upon the face of the within Series 1999 Bond in every
particular, without alteration or any change whatever.

                                     C-14
<PAGE>

                      NOTICE OF EXERCISE OF TENDER OPTION
                            INSTRUCTIONS TO SELL -
           For Use When Series 1999 Bonds Are in Interest Rate Mode
                        Other than Weekly Interest Rate

TO:  The Huntington National Bank
     41 South High Street
     Columbus, Ohio  43215
     Attn:  Corporate Trust Department
     ----

RE: $3,500,000 Business Finance Authority of the State of New Hampshire
    Adjustable Rate Demand Industrial Development Revenue Bonds, Series 1999
    (Apex Telecommunications Manufacturing, Inc. Project)

    The undersigned, as the Holder of the Bond annexed hereto (the "Bond"),
hereby elects the option available to the undersigned pursuant to the Trust
Indenture relating to the above-captioned bond issue. In accordance with such
option, the undersigned hereby tenders:

     check the           [_]       the entire Bond
     appropriate box
                         [_]       $________________
                                   ($100,000 and increments of $5,000
                                   in principal amount of the Bond
                                   above $100,000)

for purchase, on the first Bond Purchase Date (as defined in the Bond) after the
date hereof, pursuant to the referenced Trust Indenture. In accordance with such
tender, the undersigned hereby irrevocably sells, assigns and transfers such
Bond or portion thereof at 100% of the principal amount thereof plus accrued
interest and does hereby irrevocably constitute and appoint the Trustee as
attorney to transfer such Bond or portion thereof on the books of the Trustee,
with full power of substitution in the premises.

Dated:_________________________         ________________________________________
                                                       Signature

Signature Guaranteed:

________________________________

                                     C-15
<PAGE>

NOTICE: To exercise the option available to the Holder pursuant to the
referenced Trust Indenture, the Holder must notify the Trustee no later than
11:00 a.m. local time of the Trustee on the eighth Business Day prior to the
applicable Bond Purchase Date, as further provided in the Bond, and these
Instructions to Sell and the Bond must be delivered to the principal corporate
trust office of the Trustee no later than 11:00 a.m. local time of the Trustee
on the fifth Business Day prior to the applicable Bond Purchase Date. The
signature to these Instructions to Sell must correspond with the name as written
upon the face of the Bond in every particular, without alteration or
enlargement, or any change whatsoever.

                                     C-16
<PAGE>

                       NOTICE OF EXERCISE OF TENDER OPTION
                            INSTRUCTIONS TO SELL -
              For Use When Series 1999 Bonds Bear Interest at the
                             Weekly Interest Rate

TO:  The Huntington National Bank
     41 South High Street
     Columbus, Ohio  43215
     Attn:  Corporate Trust Department.
     ----

RE:  $3,500,000 Business Finance Authority of the State of New Hampshire
     Adjustable Rate Demand Industrial Development Revenue Bonds, Series 1999
     (Apex Telecommunications Manufacturing, Inc. Project)

          The undersigned, as the Holder of the Bond annexed hereto (the
"Bond"), hereby elects the option available to the undersigned pursuant to the
Trust Indenture relating to the above-captioned bond issue. In accordance with
such option, the undersigned hereby tenders:

     check the           [_]       the entire Bond
     appropriate box
                         [_]       $_________________
                                   ($100,000 and increments of $5,000
                                   in principal amount of the Bond
                                   above $100,000)

for purchase, on __________, which is a date at least seven days following the
date of delivery of this notice to the Trustee pursuant to the referenced Trust
Indenture. In accordance with such tender, the undersigned hereby irrevocably
sells, assigns and transfers such Bond or portion thereof at 100% of the
principal amount thereof plus accrued interest and does hereby irrevocably
constitute and appoint the Trustee as attorney to transfer such Bond or portion
thereof on the books of the Trustee, with full power of substitution in the
premises.

Dated:________________________          ______________________________________
                                                  Signature

Signature Guaranteed:

______________________________

                                     C-17
<PAGE>

NOTICE: To exercise the option available to the Holder pursuant to the
referenced Trust Indenture, the Holder must notify the Trustee no later than the
seventh day prior to the applicable Bond Purchase Date, as further provided in
the Bond, and these Instructions to Sell and the Bond must be delivered to the
principal corporate trust office of the Trustee no later than 10:00 a.m. local
time of the Trustee on the Business Day immediately preceding the Bond Purchase
Date specified in these Instructions to Sell. The signature to these
Instructions to Sell must correspond with the name as written upon the face of
the Bond in every particular, without alteration or enlargement, or any change
whatsoever.

                                     C-18<PAGE>

                                                                  EXHIBIT 10.2.3

                            REIMBURSEMENT AGREEMENT

                                    Between

                  APEX TELECOMMUNICATIONS MANUFACTURING, INC.

                                      AND

                         THE HUNTINGTON NATIONAL BANK

               Re:  $3,500,000 Business Finance Authority
                    of the State of New Hampshire
                    Adjustable Rate Demand
                    Industrial Development Revenue Bonds,
                    Series 1999 (Apex Telecommunications
                    Manufacturing, Inc. Project)
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
1.   Definitions And Accounting Terms.......................................   1
     --------------------------------

     1.1    Defined Terms...................................................   1
            -------------

     1.2    Use of Defined Terms............................................   5
            --------------------

     1.3    Accounting Terms................................................   5
            ----------------

     1.4    Exhibits........................................................   5
            --------

2.   Bonds..................................................................   5
     -----

3.   Letter of Credit.......................................................   5
     ----------------

4.   Letter of Credit Documents.............................................   6
     --------------------------

     4.1    Security Documents..............................................   6
            ------------------

     4.2    Other Documents and Actions.....................................   6
            ---------------------------

     4.3    Right of Set-Off Against the Borrower; Additional Collateral....   6
            ------------------------------------------------------------

5.   Conditions to Issuance, Disbursements and Closing......................   7
     -------------------------------------------------

     5.1    Conditions to Issuance..........................................   7
            ----------------------

     5.2    Bank's Consent to Disbursements.................................  10
            -------------------------------

     5.3    Disbursement Requests...........................................  10
            ---------------------

     5.4    Conditions to Disbursement......................................  10
            --------------------------

6.   Reimbursement and Other Payments; Extension............................  11
     -------------------------------------------

     6.1    Reimbursement and Other Payments................................  11
            --------------------------------

     6.2    Payments........................................................  13
            --------

     6.3    Increased Costs Due to Change in Law............................  14
            ------------------------------------

     6.4    Obligations Absolute............................................  14
            --------------------

     6.5    Termination and Extension of Letter of Credit...................  15
            ---------------------------------------------
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                           <C>
     6.6    Pledge of Remarketing Bonds and Beneficial Ownership Interests..  15
            --------------------------------------------------------------

     6.7    Reinstatement...................................................  17
            -------------

7.   Representations and Warranties by the Borrower.........................  17
     ----------------------------------------------

     7.1    Organization of the Borrower and the Guarantor..................  17
            ----------------------------------------------

     7.2    Execution, Delivery and Performance of Letter of Credit
            -------------------------------------------------------
            Documents and Bond Documents....................................  18
            ----------------------------

     7.3    Financial Statements............................................  19
            --------------------

     7.4    No Material Adverse Change......................................  19
            --------------------------

     7.5    Tax Liability...................................................  19
            -------------

     7.6    Compliance with Laws............................................  20
            --------------------

     7.7    Litigation......................................................  20
            ----------

     7.8    Compliance with Requirements....................................  20
            ----------------------------

     7.9    Statements......................................................  20
            ----------

     7.10   Pension Plan Liabilities........................................  20
            ------------------------

     7.11   Environmental Protection........................................  21
            ------------------------

     7.12   Year 2000 Compliance............................................  22
            --------------------

8.   Affirmative Covenants of the Borrower..................................  23
     --------------------------------------

     8.1    Protection of Lien on Project Facilities........................  23
            ----------------------------------------

     8.2    Protection of Security Interest in Personal Property............  23
            ----------------------------------------------------

     8.3    Payment of Taxes, Assessments and Charges.......................  23
            -----------------------------------------

     8.4    Undisbursed Bond Proceeds.......................................  23
            -------------------------

     8.5    Insurance.......................................................  24
            ---------

     8.6    Escrow for Taxes, Assessments and Insurance.....................  24
            -------------------------------------------

     8.7    Governmental Approvals..........................................  24
            ----------------------

     8.8    Compliance with Requirements....................................  24
            ----------------------------
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                           <C>
     8.9    Books and Records...............................................  24
            -----------------

     8.10   Notice of Litigation............................................  25
            --------------------

     8.11   Notice of Certain Events........................................  25
            ------------------------

     8.12   Opinions and Notices............................................  25
            --------------------

     8.13   Defaults of Others..............................................  25
            ------------------

     8.14   Security of Project Facilities..................................  26
            ------------------------------

     8.15   ERISA...........................................................  26
            -----

     8.16   Payment of Taxes and Claims.....................................  26
            ---------------------------

     8.17   Maintenance of Property and Existence...........................  26
            -------------------------------------

     8.18   Sale of Assets, Merger, Subsidiaries and Tradenames.............  27
            ---------------------------------------------------

     8.19   Other Borrowings and Contingent Liabilities.....................  27
            -------------------------------------------

     8.20   Ownership and Management........................................  27
            ------------------------

     8.21   Financial Statements............................................  27
            --------------------

     8.22   Interim Financial Statements....................................  28
            ----------------------------

     8.23   List of Personal Property.......................................  28
            -------------------------

     8.24   Tax Appeals.....................................................  28
            -----------

     8.25   Copies of Leases................................................  28
            ----------------

     8.26   Maintenance and Furnishing of Project Facilities;
            -------------------------------------------------
            Substitutions and Removals......................................  28
            --------------------------

     8.27   Deposit Accounts................................................  30
            ----------------

     8.28.  Optional Redemption of Bonds and Other Payments.................  30
            ------------------------------------------------

9.   Negative Covenants of the Borrower.....................................  31
     ----------------------------------

     9.1    Liens on Project Facilities.....................................  31
            ---------------------------

     9.2    Liens on Personal Property......................................  31
            --------------------------

     9.3    Transfers of Project Facilities or Bond Document Obligations....  31
            ------------------------------------------------------------
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>                                                                           <C>
     9.4    Leases..........................................................  31
            ------

     9.5    Easements.......................................................  31
            ---------

     9.6    Amendments to Documents.........................................  32
            -----------------------

     9.7    Nature of Business..............................................  32
            ------------------

10.  [Reserved].............................................................  32

11.  Events of Default and Remedies Upon Default............................  32
     -------------------------------------------

     11.1   Events of Default...............................................  32
            -----------------

     11.2   Remedies Upon Default...........................................  34
            ---------------------

     11.3   Cumulative Remedies; No Waiver..................................  35
            ------------------------------

12.  Miscellaneous..........................................................  36
     -------------

     12.1   Actions.........................................................  36
            -------

     12.2   Nonliability of the Bank........................................  36
            ------------------------

     12.3   No Representations by the Bank..................................  36
            ------------------------------

     12.4   No Third Parties Benefited......................................  37
            --------------------------

     12.5   Indemnity by the Borrower.......................................  37
            -------------------------

     12.6   Commissions.....................................................  37
            -----------

     12.7   Binding Effect..................................................  38
            --------------

     12.8   Execution in Counterparts.......................................  38
            -------------------------

     12.9   Prior Agreements; Amendments; Consents..........................  38
            --------------------------------------

     12.10  Cumulative Remedies; No Waiver..................................  38
            ------------------------------

     12.11  Inclusion of Expenditures in Indebtedness.......................  38
            -----------------------------------------

     12.12  Survival of Representations and Warranties......................  38
            ------------------------------------------

     12.13  Notices.........................................................  39
            -------

     12.14  Further Assurances..............................................  40
            ------------------

     12.15  Governing Law...................................................  40
            -------------
</TABLE>

                                      iv
<PAGE>

<TABLE>
<S>                                                                           <C>
     12.16  Severability of Provisions......................................  40
            --------------------------

     12.17  Headings........................................................  40
            --------

     12.18  Time of the Essence.............................................  40
            -------------------

     12.19  Waiver of Jury Trial............................................  40
            --------------------

     12.20  Warrant of Attorney.............................................  41
            -------------------
</TABLE>

     Exhibit A     Letter of Credit
                   ----------------

     Exhibit B     Description of Project Site
                   ---------------------------

                                       v
<PAGE>

                            REIMBURSEMENT AGREEMENT
                            -----------------------

     This Reimbursement Agreement is entered into as of September 1, 1999, by
and between APEX TELECOMMUNICATIONS MANUFACTURING, INC., a New Hampshire
corporation, (the "Borrower") and THE HUNTINGTON NATIONAL BANK, a national
banking association (the "Bank").

            1.  Definitions And Accounting Terms.
                --------------------------------

                1.1  Defined Terms. As used in this Reimbursement Agreement, the
                     -------------
following terms shall have the meaning set forth respectively after each:

            "Agreement" means this Reimbursement Agreement, either as originally
executed or as it may from time to time be supplemented or amended.

            "ALTA Policy" means the policy of title insurance covering the
Project Site required pursuant to Section 5.1.1 of this Agreement.

            "Beneficial Owner" means, with respect to a Bond, a person with a
Beneficial Ownership Interest therein, as evidenced to the satisfaction of the
Trustee.

            "Beneficial Ownership Interest" means the right to receive payments
and notices with respect to the Bonds that are held by the Depository under a
book entry system.

            "Bond Documents" means all of the instruments and agreements which
may become effective or be executed from time to time by the Issuer, the
Trustee, and/or the Borrower in connection with the Bonds, including without
limitation the following, as from time to time supplemented or amended:

     (i)    the Trust Indenture;

     (ii)   the Loan Agreement;

     (iii)  the Note;

     (iv)   the Bond Placement Agreement;

     (v)    the Bond Legislation;

     (vi)   the Tax Regulatory Agreement, dated as of September 1, 1999, among
the Borrower, the Issuer and the Trustee;

     (vii)  the Letter of Representations;

     (viii) the Remarketing Agreement; and

                                       1
<PAGE>

     (ix)   the Private Placement Memorandum, dated September 30, 1999.

            "Bond Fund" means, the Bond Fund as defined in the Trust Indenture.

            "Bond Legislation" means the Bond Legislation as defined in the
Trust Indenture.

            "Bond Proceeds" means the proceeds of the Bonds, including without
limitation the amounts held from time to time by the Trustee in the Project
Fund, and any reserve or other fund, as well as any insurance or condemnation
proceeds or other assets held by the Trustee in special funds established
pursuant to the Bond Documents or otherwise, but excluding any amounts deposited
in the Bond Fund and in any fund established to comply with the rebate
requirements of Section 148 of the Internal Revenue Code of 1986, as amended.

            "Bond Placement Agreement" means the Bond Placement Agreement dated
September 30, 1999, among the Issuer, the Borrower, the Bank and the Placement
Agent, as from time to time supplemented or amended with the prior written
consent of the Bank.

            "Bonds" means the $3,500,000 Business Finance Authority of the State
of New Hampshire Adjustable Rate Demand Industrial Development Revenue Bonds,
Series 1999 (Apex Telecommunications Manufacturing, Inc. Project) to be issued
pursuant to the Trust Indenture for the purpose of financing and/or refinancing
the Project Costs.

            "Borrower Representative" means each of one or more Persons
authorized in writing from time to time by the Borrower, to deliver
certificates, requests for disbursements and other documents and instruments to
the Bank pursuant to this Agreement and, in the absence of such designation,
means any officer of the Borrower.

            "Business Day" means any day of the year, other than (a) a Saturday;
(b) a Sunday; (c) a day on which commercial banks located in the cities in which
the principal corporate trust office of the Trustee and the principal offices of
the Bank and the Remarketing Agent are located are required or authorized by law
to remain closed; or (d) a day on which the New York Stock Exchange is closed.

            "Depository" means any securities depository that is a clearing
agency under federal law operating and maintaining, with its participants or
otherwise, a book entry system to record ownership of book entry interests in
the Bonds, and to effect transfers of book entry interests in Bonds, and
includes and means initially The Depository Trust Company (a limited purpose
trust company), New York, New York.

            "Determination of Taxability" means a Determination of Taxability as
determined in accordance with the terms of the Trust Indenture.

            "Disbursement" means each of the disbursements by the Trustee from
the Project Fund pursuant to this Agreement and the Bond Documents.

                                       2
<PAGE>

            "Event of Default" means each of those events so designated in
Section 11.1 of this Agreement.

            "Financing Statements" means the UCC-1 financing statements required
pursuant to Section 4.1 of this Agreement, as from time to time supplemented or
amended.

            "Fiscal Year" means the fiscal year of the Borrower.

            "Guarantor" means PECO II, Inc., an Ohio corporation.

            "Guaranty Agreement" means the Guaranty Agreement of even date
herewith executed and delivered by the Guarantor to the Trustee, as from time to
time supplemented or amended with the written consent of the Bank.

            "Issuer" means the Business Finance Authority of the State of New
Hampshire, a body corporate and politic as an agency organized and existing
under the Constitution and laws of the State of New Hampshire.

            "Letter of Credit" means the letter of credit to be issued by the
Bank pursuant to this Agreement in the form attached hereto as Exhibit A, either
                                                               ---------
as originally executed or as it may from time to time be extended, renewed or
replaced pursuant to this Agreement.

            "Letter of Credit Documents" means, collectively, this Agreement and
the Security Documents, as from time to time supplemented or amended.

            "Letter of Representations" means the Letter of Representations from
the Issuer, the Borrower, the Trustee, the Remarketing Agent, the Registrar (as
defined in the Trust Indenture) and the Paying Agent (as defined in the Trust
Indenture) to the Depository, as supplemented and amended from time to time.

            "Loan Agreement" means the Loan Agreement of even date herewith, by
and between the Issuer and the Borrower, as from time to time supplemented or
amended with the written consent of the Bank.

            "Mortgage" means the Mortgage, Assignment of Rents, and Security
Agreement of even date herewith executed and delivered by the Borrower to the
Bank, as from time to time supplemented or amended.

            "Note" means the Series 1999 Promissory Note of the Borrower payable
to the Trustee, dated September 30, 1999, in the form attached to the Loan
Agreement as Exhibit C.

            "Participant" means any financial institution which may become
liable for funding a portion of draws under the Letter of Credit pursuant to the
terms of a participation agreement between the Bank and the Participant.

                                       3
<PAGE>

            "Permitted Encumbrances" means the utility, access and other
easements, rights-of-way, mineral rights, restrictions and exceptions of record
encumbering the Project Site and approved by the Bank for inclusion as
exceptions in the policy of title insurance in favor of the Bank insuring the
lien of the Mortgage on the Project Site, as from time to time supplemented or
amended with the prior written consent of the Bank.

            "Person" means and includes an individual, corporation, partnership,
limited liability company, trust, unincorporated organization or association and
a government or any department or agency thereof.

            "Placement Agent" means The Huntington National Bank, a national
banking association.

            "Prime Rate" means the interest rate per annum established by The
Huntington National Bank from time to time as such bank's prime commercial rate
based on its consideration of economic, money market, business and competitive
factors, and is not necessarily such bank's most favored rate. Subject to any
minimum or maximum rate limitations specified by applicable law, the Prime Rate
will automatically and immediately change from time to time effective as of the
effective date of each such change in the prime commercial rate of such bank.

            "Private Placement Memorandum" means the Private Placement
Memorandum dated September 30, 1999 relating to the Bonds.

            "Project" means the facility for the manufacture of products for the
telecommunications industry to be located on the Project Site, and the
acquisition, construction, installation, renovation and equipping thereof.

            "Project Costs" means all costs of any nature whatsoever incurred by
or on behalf of the Borrower in connection with the acquisition, construction,
installation, renovation and equipping of the Project.

            "Project Facilities" means the Project Site and the Project,
together with any additions, modifications and substitutions to those facilities
or any other improvements to the Project Site.

            "Project Site" means the real property described in Exhibit B
hereto, and any additions thereto, less any removals therefrom, made in the
manner and to the extent provided in the Mortgage and this Agreement, and all
existing improvements, fixtures, furniture, equipment and machinery located
thereon or used in connection therewith.

            "Remarketing Agent" means the Remarketing Agent as designated from
time to time pursuant to the provisions of the Trust Indenture.

            "Remarketing Agreement" means the Remarketing Agreement of even date
herewith between the Borrower and the Remarketing Agent, as from time to time
supplemented or amended.

                                       4
<PAGE>

            "Security Agreement" means the Security Agreement (Equipment,
Fixtures, Inventory, and Accounts), dated as of even date herewith from the
Borrower to the Bank, as from time to time supplemented or amended.

            "Security Documents" means, collectively, the Mortgage, the Security
Agreement, the Financing Statements, the Guaranty Agreement and any other
mortgage, security agreement, guaranty, financing statement or assignment now,
heretofore or hereafter executed to secure the obligations of the Borrower under
this Agreement, in each case either as originally executed or as the same may
from time to time be supplemented or amended.

            "Trustee" means The Huntington National Bank, a national banking
association, with its principal corporate trust office located in Columbus,
Ohio, or its successors as trustee under the Trust Indenture.

            "Trust Indenture" means the Trust Indenture of even date herewith
executed and delivered by the Issuer and the Trustee, as from time to time
supplemented or amended.

            1.2   Use of Defined Terms. Any defined term used in the plural
                  --------------------
shall refer to all members of the relevant class, and any defined term used in
the singular shall refer to any number of the members of the relevant class.

            1.3   Accounting Terms. All accounting terms not specifically
                  ----------------
defined in this Agreement shall be construed in conformity with, and all
financial data required to be submitted by this Agreement shall be prepared in
conformity with, generally accepted accounting principles ("GAAP"), applied on a
consistent basis.

            1.4   Exhibits. All Exhibits to this Agreement, either as now
                  --------
existing or as the same may from time to time be supplemented or amended, are
incorporated herein by this reference.

     2.     Bonds. The Borrower contemplates entry into the Bond Documents to
            -----
which it is a party in order to cause the issuance of the Bonds, so that the
Bond Proceeds may be used to finance and/or refinance the cost of the
acquisition, construction, installation, renovation and equipping of the
Project.

     3.     Letter of Credit. The Borrower has requested the Bank to issue an
            ----------------
irrevocable direct pay letter of credit in the form attached hereto as Exhibit
"A" in an aggregate amount not exceeding $3,565,334, of which (a) an amount not
exceeding $3,500,000 shall be available to pay the principal amount of the Bonds
and the portion of purchase or redemption price corresponding to principal of
the Bonds and (b) an amount not exceeding $65,334 shall be available to pay for
up to 56 days' interest accrued on the Bonds and the portion of purchase or
redemption price corresponding to interest on the Bonds at the actual interest
rate on the Bonds not to exceed a maximum interest rate of 12% per annum, all as
more particularly provided in the Letter of Credit. The Bank is willing to issue
the Letter of Credit on the terms and conditions contained in this Agreement and
the other Letter of Credit Documents.

                                       5
<PAGE>

     4.     Letter of Credit Documents.
            --------------------------

            4.1   Security Documents. In consideration of the Bank's entry into
                  ------------------
this Agreement and the other Letter of Credit Documents, and as security for the
prompt payment when due of all sums of principal, interest and purchase price
advanced by the Bank pursuant to the Letter of Credit as well as for payment of
any other sums owing pursuant to this Agreement or any of the other Letter of
Credit Documents, together with any and all extensions, renewals, modifications
and amendments thereof and as security for the performance and observance of all
of the covenants, agreements and conditions contained in the Letter of Credit,
this Agreement and all of the other Letter of Credit Documents, the Borrower
shall, at its sole expense, execute and deliver or cause to be executed and
delivered to the Bank and record or cause to be recorded, if appropriate, the
following documents, each of which shall be in such form and content, and
executed by such persons and/or entities, as the Bank shall in its reasonable
discretion require:

                  (a)    the Mortgage;

                  (b)    the Security Agreement;

                  (c)    the Financing Statements; and

                  (d)    the Guaranty Agreement.

            4.2   Other Documents and Actions. The Borrower agrees to execute,
                  ---------------------------
acknowledge and/or deliver or cause to be executed, acknowledged and/or
delivered to the Bank such other instruments, agreements and other documents,
and to take such actions, upon request by the Bank, as the Bank may reasonably
request in order to carry out the purposes of this Agreement and the other
Letter of Credit Documents and the transactions contemplated thereby and to
protect and/or further the validity, priority and/or enforceability of the
Security Documents or subject to the Security Documents and the security
interest and/or lien thereby created, any property, together with any renewals,
additions, substitutions, replacements or betterments thereto, intended by the
terms of this Agreement or the other Letter of Credit Documents to be covered by
the Security Documents.

            4.3   Right of Set-Off Against the Borrower; Additional
                  -------------------------------------------------
Collateral.
----------
                  (a)    Upon the occurrence and during the continuance of any
Event of Default hereunder, the Bank is hereby authorized at any time and from
time to time, without notice to the Borrower (any such notice being expressly
waived by the Borrower) and to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other indebtedness at any time owing by the Bank
to or for the credit or the account of the Borrower, against any and all of the
obligations of the Borrower now or hereafter existing under this Agreement or
the other Letter of Credit Documents, irrespective of whether or not the Bank
shall have made any demand hereunder and although such obligations may be
unmatured.

                                       6
<PAGE>

                  (b)    The Bank agrees promptly to notify the Borrower and the
Trustee after any such set-off and application, provided that the failure to
give such notice shall not affect the validity of such set-off and application.
The rights of the Bank under this Section 4.3 are in addition to other rights
and remedies (including, without limitation, other rights of set-off) which the
Bank may have.

     5.     Conditions to Issuance, Disbursements and Closing
            -------------------------------------------------

            5.1   Conditions to Issuance. The obligation of the Bank to issue
                  ----------------------
the Letter of Credit is subject to the following conditions precedent, unless
specifically waived in writing by the Bank:

                  5.1.1  The Bank shall have received all the following, each of
which shall be in form and substance satisfactory to the Bank:

                  (a)    manually executed counterparts of the Letter of Credit
Documents and the Bond Documents and the fees and expenses required by Section
6.1 of this Agreement to be paid on the date of issuance of the Letter of
Credit;

                  (b)    a copy of the Articles of Incorporation of the
Borrower, as amended, certified by the Secretary of State of New Hampshire, the
Bylaws, as amended, of the Borrower, certified by the Secretary or an Assistant
Secretary of the Borrower, and a certificate of the Secretary of State of New
Hampshire as to the Borrower's good standing as a corporation duly organized and
existing under the laws of the State of New Hampshire;

                  (c)    a copy of the Articles of Incorporation of the
Guarantor, as amended, certified by the Secretary of State of Ohio, the Code of
Regulations, as amended, of the Guarantor, certified by the Secretary or an
Assistant Secretary of the Guarantor, and a certificate of the Secretary of
State of Ohio as to the Guarantor's good standing as a corporation duly
organized and existing under the laws of the State of Ohio;

                  (d)    copies of such currently effective licenses, permits
and approvals of governmental authorities as are necessary to evidence the legal
authority of the Borrower to operate the Project;

                  (e)    corporate resolutions in form and substance
satisfactory to the Bank and certified to the date of issuance of the Letter of
Credit by the Secretary or Assistant Secretary of the Borrower authorizing the
Borrower's execution and delivery of the Letter of Credit Documents and the Bond
Documents to which it is a party and empowering the signatories thereto to act
on behalf of the Borrower;

                  (f)    corporate resolutions in form and substance
satisfactory to the Bank and certified to the date of issuance of the Letter of
Credit by the Secretary or Assistant Secretary of the Guarantor authorizing the
Guarantor's execution and delivery of the Letter of Credit Documents to which it
is a party and empowering the signatories thereto to act on behalf of the
Guarantor;

                                       7
<PAGE>

                  (g)    all of the opinions, certificates, and other documents
specified in, or requested by the Bank, the Issuer, the Placement Agent or the
Borrower pursuant to the Bond Placement Agreement;

                  (h)    a written opinion of the Borrower's and Guarantor's
counsel, in form and substance satisfactory to the Bank, covering such matters
relating to the Borrower, the Guarantor, the Project, the Letter of Credit
Documents and the Bond Documents as may be required by the Bank;

                  (i)    a written opinion of bond counsel, in form and
substance satisfactory to the Bank, covering such matters relating to the Issuer
and the Bond Documents as may be required by the Bank;

                  (j)    a current property survey of the Project Site certified
to the Bank and the title insurance company issuing the ALTA Policy prepared by
a registered surveyor in conformity with the Bank's survey standards and
locating all access roads, easements and other encumbrances set forth in the
ALTA Policy;

                  (k)    (i) a standard ALTA mortgagee title insurance
commitment, in form and substance and issued by a title insurance company
satisfactory to the Bank, together with satisfactory evidence of reinsurance of
a portion of the title insurance company's obligations under the final policy of
title insurance if required by the Bank in its discretion, naming the Bank as
insured in a policy amount of not less than $3,565,334 reflecting the Borrower's
marketable title in and to the Project Facilities and containing only exceptions
acceptable to the Bank; (ii) in the event the title insurance commitment shows
restrictive covenants affecting the Project Site, evidence that such restrictive
covenants are not now being violated and will not be violated by the
development, construction and renovation of the Project Facilities thereon; and
(iii) after closing and recording, a final policy of title insurance on the ALTA
1970 (Revised 1984) form naming the Bank as insured, containing no exceptions
for filed or unfiled mechanics' or materialmen's liens, the rights of parties in
possession or as to matters of survey, together with such other endorsements and
coverages as may from time to time be required by the Bank, and insuring the
Mortgage as a valid first lien on the Project, subject only to Permitted
Encumbrances, all in conformity to the Bank's title insurance requirements;

                  (l)    certificates of insurance and certified copies of
policies in accordance with the Bank's insurance requirements and the other
insurance requirements set forth in the Mortgage;

                  (m)    an opinion of counsel acceptable to the Bank, to the
effect that, in connection with the offer and sale of the Bonds and the issuance
of the Letter of Credit, it is not necessary to register any security under the
Securities Act of 1933, as amended, or the securities laws of any State or, if
such registration is necessary, that all necessary registrations have been made;
and the Bank shall, if requested by the Bank, be supplied with a Blue Sky
memorandum in form and content acceptable to the Bank;

                                       8
<PAGE>

                  (n)    current Uniform Commercial Code searches made in such
places as the Bank may specify, covering the Borrower, showing no filings
relating to, or which could relate to, the tangible and intangible personal
property of the Borrower other than those made hereunder and under the Security
Documents and Bond Documents;

                  (o)    evidence satisfactory to the Bank that there is
satisfactory ingress and egress to the Project Site;

                  (p)    a current "Phase One" environmental report regarding
hazardous wastes, toxic materials and other environmental hazards on the Project
Site, which report shall be certified by an environmental consultant and shall
conform in all respects with the Bank's "Phase One Environmental Report
Requirements." If warranted by the Phase One environmental report, the Borrower
shall provide a detailed audit of the same matters. Such consultant must appear
on the Bank's list of approved environmental consultants or be specifically
approved in writing by the Bank;

                  (q)    evidence satisfactory to the Bank indicating that no
portion of the Project Site is located in a flood hazard area designated by the
U.S. Department of Housing and Urban Development;

                  (r)    receipt with respect to the Project Facilities of (i)
evidence that public water, sewer, and other required utilities are available at
the Project Site and that the capacities of each such utility are sufficient to
adequately service the Project Facilities, (ii) copies of the applicable
occupancy permits with respect to the Project and evidence that the Project and
its use will comply with all applicable building and other governmental laws,
regulations and requirements, and (iii) evidence that the Project Site is
finally and unappealably zoned to permit the existing and proposed uses of the
Project Site and the Project Facilities;

                  (s)    evidence that the Project Site comprises one or more
separate tax parcels;

                  (t)    evidence that, except for approvals available only upon
completion of the Project, all approvals required for the development,
construction, renovation, equipping, use and operation of the Project have been
granted by all governmental authorities having jurisdiction;

                  (u)    an appraisal of the Project Facilities in form and
amount acceptable to the Bank on the date of issuance by an MAI appraiser
acceptable to the Bank and confirmed by the Bank's review appraiser; and

                  (v)    current financial statements for each of the Borrower
and the Guarantor, in form and substance satisfactory to the Bank.

            5.1.2 The Bank shall have received confirmation to its satisfaction
that the Security Documents and Bond Documents have been duly executed,
acknowledged, delivered and recorded or filed as appropriate.

                                       9
<PAGE>

            5.1.3 The Bonds shall have been duly executed and delivered, and all
of the Bonds shall have been sold and the purchase price for the Bonds received
by the Trustee, as required pursuant to the Bond Documents, simultaneously with
the issuance of the Letter of Credit.

            5.1.4 The Bank shall have received, in form and substance
satisfactory to the Bank, such additional certificates, documents, consents or
opinions as the Bank may reasonably request.

            5.2   Bank's Consent to Disbursements. The Bank's written consent
                  -------------------------------
shall be required as a condition precedent to each Disbursement.

            5.3   Disbursement Requests. The Bank's consent to Disbursements
                  ---------------------
shall be given, subject to the conditions contained in Section 5.4 of this
Agreement, only upon written request of the Borrower signed by a Borrower's
Representative.

            5.4   Conditions to Disbursement. The Bank's consent to
                  --------------------------
Disbursements required pursuant to Section 5.3, above, shall be given only
following satisfaction of each of the following conditions, unless waived by the
Bank:

                  5.4.1  The Borrower shall be in full compliance with all of
the conditions set forth in Section 5.1, above, and all of such conditions shall
have been satisfied, as of the date of the Disbursement;

                  5.4.2  There shall have occurred no Event of Default which
remains unwaived or uncured or event which, with the giving of notice or the
passage of time, or both, would constitute an Event of Default and, if the Bank
shall so require, the Bank shall have received a certificate to that effect
signed by a Borrower's Representative;

                  5.4.3  The representations and warranties contained in Section
7.1 through 7.12 below, shall be correct on and as of the date of the
Disbursement as though made on and as of that date and, if so requested by the
Bank, the Bank shall have received a certificate to that effect signed by a
Borrower's Representative;

                  5.4.4  The Borrower shall, at its sole expense, have delivered
or caused to be delivered to the Bank originals of the "date down" endorsements
to the ALTA Policy as may from time to time be reasonably required by the Bank;
and

                  5.4.5  On and as of the date of the Bank's consent to the
Disbursement, the Borrower shall have complied in all material respects with all
applicable laws, ordinances, regulations and other requirements relating to the
Project, and all necessary consents or approvals of any court or governmental
department, public body, authority, commission, board, bureau, agency or
instrumentality shall have been regularly and finally received with respect
thereto, to the extent reasonably obtainable by the date of such Disbursement,
including without limitation each of the following as applicable:

                                       10
<PAGE>

            (a)   all zoning, land use and planning requirements;

            (b)   subdivision and/or parcel map requirements;

            (c)   construction and building permit requirements; and,

if the Bank shall so require, the Bank shall have received, dated as of the date
of the Bank's consent to the Disbursement, a certificate signed by a Borrower's
Representative that, to the best of the Borrower's knowledge, such requirements
have been complied with; and

                  5.4.6  The Borrower shall be in compliance with all of the
terms and conditions imposed by the Bond Document in connection with such
Disbursement and, if the Bank shall so require, the Bank shall have received a
certificate to that effect signed by a Borrower's Representative.

     6.     Reimbursement and Other Payments; Extension.
            -------------------------------------------

            6.1   Reimbursement and Other Payments. The Borrower hereby agrees
                  --------------------------------
to pay to the Bank:

                  (a)    on the date of any Principal Drawing or Interest
Drawing (as such terms are defined in the Letter of Credit), a sum equal to the
amount of such Principal Drawing or Interest Drawing plus the sum of $50 for
each such Principal or Interest Drawing made on the Letter of Credit;

                  (b)    the portion of the Remarketing Drawing (as defined in
the Letter of Credit) used by the Trustee to pay the principal portion of Bonds
or Beneficial Ownership Interests duly tendered, or deemed tendered, for
purchase and not remarketed on the applicable Bond Purchase Date (as defined in
the Trust Indenture) shall be due and payable to the Bank ninety (90) days after
the date of such Remarketing Drawing or on the date the Pledged Bonds (as
defined in Section 6.6 below) which were the subject of such Remarketing Drawing
are remarketed, whichever shall first occur, and the unreimbursed portion of the
Remarketing Drawing shall bear interest from the date of such Remarketing
Drawing until payment of such portion thereof in full at the interest rate
provided in subsection (d) of this Section 6.1, payable on the first business
day of each month, commencing on the first business day of the month following
the month in which such Remarketing Drawing occurs. The portion of a Remarketing
Drawing used by the Trustee to pay the interest portion of the purchase price of
Bonds or Beneficial Ownership Interests duly tendered, or deemed tendered, for
purchase on the applicable Bond Purchase Date shall be paid on the date of such
Remarketing Drawing, together with the sum of $50 for each such Remarketing
Drawing. Any payment of interest on Bonds held by the Bank pursuant to Section
6.6 hereof, if and when received by the Bank, shall be applied by the Bank to
the payment of interest owed by the Borrower pursuant to the first sentence of
this Section 6.1(b);

                                       11
<PAGE>

                  (c)    on demand, all reasonable amounts expended, advanced or
incurred by the Bank to satisfy any obligation of the Borrower under this
Agreement or any other Letter of Credit Document or to enforce the rights of the
Bank under this Agreement or any other Letter of Credit Document or Bond
Document (including without limitation any costs incurred by the Bank in
connection with any insolvency or bankruptcy proceeding affecting the Borrower,
or any tenant, sub-tenant, licensee or occupant with respect to any portion of
the Project, the Guarantor, or any other guarantor of the Borrower's obligations
under this Agreement or any of the Security Documents), which amounts will
include all court costs, reasonable attorneys' fees, fees of auditors and
accountants and investigation expenses reasonably incurred by the Bank in
connection with any such matter;

                  (d)    on demand, except as otherwise provided herein,
interest on any and all amounts unpaid by the Borrower to the Bank when due
under this Agreement or any other Letter of Credit Document from the date such
amounts become due until paid in full at a fluctuating rate per annum (computed
on the basis of a year of 360 days but calculated on the actual number of days
outstanding) equal to two percent (2%) per annum in excess of the Prime Rate;
provided, however, that amounts drawn under a Remarketing Drawing pursuant to
the first sentence of subsection (b) of this Section 6.1 shall bear interest at
an interest rate per annum equal to one percent (1%) in excess of the Prime Rate
from the date of such Remarketing Drawing until such amounts are due and
payable, and thereafter at a rate equal to two percent (2%) per annum in excess
of the Prime Rate;

                  (e)    on demand, any other amounts owing to the Bank by the
Borrower under this Agreement or any of the other Letter of Credit Documents;

                  (f)    on the date of issuance of the Letter of Credit: (i)
all attorneys' fees and out-of-pocket expenses incurred by the Bank counsel and
bond counsel in connection with the negotiation, preparation and execution of
this Agreement, the Letter of Credit and any and all of the other Letter of
Credit Documents and security documents in connection therewith, the Bond
Documents and the transactions contemplated thereby (including any amendments
hereto or thereto or consents or waivers hereunder or thereunder); and (ii) all
fees, charges or taxes for the recording or filing of Security Documents paid by
the Bank;

                  (g)    on the date of issuance of the Letter of Credit, the
initial annual fee equal to $35,653.34 (the "Annual Fee"), being 1.00% of the
original stated amount of the Letter of Credit, for the period from the date of
issuance of the Letter of Credit through September 15, 2000; and

                  (h)    for each subsequent year that the Letter of Credit
remains in effect, the Borrower will pay to the Bank for the one-year period
commencing on the 16th day of September of such year (a "Fee Period") an Annual
Fee equal to 1.00% of the undrawn amount available to be drawn under the Letter
of Credit on such date (which amount will take into account all reductions or
increases in such undrawn amount through such September 16), payable in advance
on the September 1 immediately preceding the commencement of such Fee Period.

                                       12
<PAGE>

If subsequent to the payment of an Annual Fee under this subsection, any amount
is reinstated under the Letter of Credit which increases the undrawn amount
available to be drawn under the Letter of Credit to an amount greater than the
amount on which such fee was calculated (the "Increase Amount"), the Borrower
will pay to the Bank the Annual Fee on the Increase Amount within five days of
demand therefor by the Bank. In no event shall the Bank have any obligation to
make reimbursement or to otherwise account to the Borrower in respect of fees
paid by the Borrower as a result of any reduction in the undrawn amount under
the Letter of Credit and/or any later adjustment to a fixed rate of interest on
the Bonds at less than the maximum interest rate of 12% per annum. If at any
point in time the Borrower fixes the interest rate on the Bonds at a rate less
than the maximum rate of 12% per annum, the letter of credit fee due and payable
annually thereafter shall be due and payable on the undrawn amount of such
Letter of Credit representing the actual rate of interest on the Bonds for the
next respective Fee Period, if fixed for such Fee Period, but if the rate of
interest on the Bonds can vary during such Fee Period, the annual letter of
credit fee shall be calculated on the assumed maximum interest rate of 12% per
annum. Provided, however, that upon termination of all obligations of the Bank
under the Letter of Credit, receipt by the Bank of the original Letter of Credit
for cancellation, receipt of all payments pursuant to this Agreement, purchase
of all Pledged Bonds held by the Bank pursuant to Section 6.6 hereof and if
there exists no default on the part of the Borrower hereunder, the Bank agrees
to refund to the Borrower a portion of the Annual Fee paid in advance by the
Borrower, the amount of such refund to be determined by multiplying the amount
of such Annual Fee paid in advance by a fraction, the numerator of which is the
number of days remaining in the period for which such fee has been paid
following termination of the Letter of Credit and the denominator of which is
the total number of days in such period.

            6.2   Payments. All payments by the Borrower to the Bank hereunder
                  --------
shall be made in lawful currency of the United States of America and in
immediately available funds before 2:00 p.m., Columbus, Ohio time on the date
when such payment is due at the office of the Bank at 41 South High Street,
Columbus, Ohio 43215, Attention: International Division, Letter of Credit
Department, or at such other location as the Bank shall designate to the
Borrower from time to time in writing. Any payment received and accepted by the
Bank after such time shall be considered for all purposes (including the
calculation of interest, to the extent permitted by law) as having been made on
the Bank's next following business day (as defined in the Letter of Credit).

                  If the date for any payment hereunder falls on a day that is
not a business day, then for all purposes of this Agreement the same shall be
deemed to have fallen on the next following business day, and such extension of
time shall in such case be included in the computation of payments of interest.

            6.3   Increased Costs Due to Change in Law. If any change in any law
                  ------------------------------------
or regulation or in the interpretation thereof by any court or administrative
agency shall either (i) impose, modify or deem applicable any reserve, special
deposit or similar requirement against or in connection with letters of credit
issued by the Bank or against commitments by any Participant in connection with
participation in letters of credit similar to the commitment made by such
Participant under its participation agreement with the Bank, if any, or (ii)
impose on the Bank or any Participant any other condition regarding this
Agreement or the Letter of Credit (other than

                                       13
<PAGE>

changes in the rates of income taxation generally applicable to the Bank or any
Participant), and the result of any such event shall be to increase the cost to
the Bank of issuing or maintaining the Letter of Credit or to increase the costs
to any Participant of maintaining its commitments under its participation
agreement (which increase in cost shall be determined by the Bank's or such
Participant's reasonable allocation of the aggregate of such cost increases
resulting from such events), then (a) the Bank or the Participant (as the case
may be) shall so notify the Borrower, and (b) upon receipt of such notice from
the Bank or the Participant (as the case may be), the Borrower shall promptly
pay to the Bank or to the Participant (as the case may be) from time to time as
specified by the Bank or the Participant (as the case may be) additional amounts
which shall be sufficient to compensate the Bank or the Participant (as the case
may be) for such increased costs, together with interest on each such amount for
the period from the date of such notice until payment in full thereof at the
Prime Rate plus two percent (2%) (computed on the basis of a year of 360 days
but calculated on the actual number of days outstanding). A certificate setting
forth in reasonable detail such increased cost incurred by the Bank or the
Participant as a result of any such event, submitted by the Bank or the
Participant to the Borrower, shall be prima facie evidence, absent manifest
                                      ----- -----
error, as to the amount thereof.

            6.4   Obligations Absolute. The obligations of the Borrower under
                  --------------------
this Agreement shall be absolute, unconditional and irrevocable, and shall be
paid and performed strictly in accordance with the terms of this Agreement,
under all circumstances whatsoever, including, without limitation, the following
circumstances:

                  (a)    any lack of validity or enforceability of the Letter of
Credit, or any of the Letter of Credit Documents or the Bond Documents or any
other agreement or instrument related thereto;

                  (b)    any amendment or waiver of, or any consent to departure
from, the terms of the Letter of Credit or any of the Letter of Credit Documents
or the Bond Documents or any other agreement or instrument related thereto;

                  (c)    the existence of any claim, set-off, defense or other
right which the Issuer or the Borrower may have at any time against the Trustee,
any beneficiary or any transferee of the Letter of Credit (or any Person for
whom the Trustee, any such beneficiary or any such transferee may be acting),
the Bank or any other Person, whether in connection with this Agreement, the
Letter of Credit, any of the other Letter of Credit Documents, the Bonds or any
other agreement or instrument related thereto, or in connection with the Project
or any unrelated transaction;

                  (d)    any statement, draft or any other document presented
under the Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect, or any statement therein being untrue or inaccurate
in any respect whatsoever (except to the extent acceptance or reliance upon any
such statement, draft or other document is a result of the Bank's gross
negligence or willful misconduct);

                                       14
<PAGE>

                  (e)    the surrender or impairment of any security for the
performance or observance of the terms of this Agreement, any of the other
Letter of Credit Documents or any other agreement related thereto; or

                  (f)    any other circumstance, happening or omission
whatsoever, whether or not similar to any of the foregoing, provided, that such
circumstance, happening or omission is not a result of the Bank's gross
negligence or willful misconduct.

            6.5   Termination and Extension of Letter of Credit. The Letter of
                  ---------------------------------------------
Credit shall terminate in accordance with the terms and conditions of the Letter
of Credit; provided, however, that, subject to such terms and conditions, the
Expiration Date, as set forth in the Letter of Credit, may be extended pursuant
to, and otherwise in accordance with, the following terms and conditions:

                  (a)    On September 16, 2004, and on each successive September
16 thereafter, if the Extension Notice (as hereinafter described) shall have
theretofore been timely delivered by the Bank to the Borrower and the Trustee,
the Expiration Date shall be extended for one full year. If the Expiration Date
is so extended on any such September 16, the Trustee shall, not later than
thirty (30) days thereafter surrender the outstanding Letter of Credit to the
Bank and accept, upon such surrender, a substitute irrevocable letter of credit
in the form of Exhibit A to this Agreement, dated the date of such substitution
and having an Expiration Date which is one year later than the Expiration Date,
but otherwise having terms identical to the surrendered Letter of Credit. In
lieu of surrendering the Letter of Credit and accepting a substitute therefor,
the Trustee may accept a written notice of extension from the Bank notifying the
Trustee that the Bank has extended the Expiration Date for a period of one year.

                  (b)    Not later than 90 days prior to September 16, 2004,
and, provided the Bank has theretofore timely given the Borrower and the Trustee
the Extension Notice, not later than 90 days prior to each subsequent September
16, through and including September 16, 2018, the Bank may, in its sole and
absolute discretion, by notice in writing given by the Bank to the Borrower and
the Trustee (the "Extension Notice"), advise the Borrower and the Trustee that
the Expiration Date will be extended in accordance with paragraph (a) of this
Section 6.5.

            6.6   Pledge of Remarketing Bonds and Beneficial Ownership
                  ----------------------------------------------------
Interests.
---------

                  (a)    As security for the payment and performance of all
obligations of the Borrower to the Bank hereunder and under the other Letter of
Credit Documents, the Borrower hereby agrees that upon the making of a
Remarketing Drawing (as defined in the Letter of Credit) the Borrower will
forthwith deliver or cause to be delivered (or recorded through the Depository)
to the Bank Bonds or Beneficial Ownership Interests free and clear of all other
liens and encumbrances in an aggregate principal amount equal to the amount of
such Remarketing Drawing, less (i) any portion of such Remarketing Drawing
representing interest on the Bonds or Beneficial Ownership Interests so
purchased, and (ii) the amounts the Bank is reimbursed by 2:00 p.m. Columbus,
Ohio time on the Bond Purchase Date corresponding to the date of such
Remarketing Drawing (collectively, the "Pledged Bonds"), and the Borrower hereby
grants to the Bank a security interest in the Pledged Bonds and in the proceeds
thereof.

                                       15
<PAGE>

                  (b)    The Borrower hereby agrees to deliver or cause to be
delivered immediately (or recorded through the Depository) to the Bank the
Pledged Bonds which shall be registered by the Trustee (or recorded through the
Depository) in the names of the Borrower as pledgor and the Bank as pledgee,
with the Borrower's endorsements of the Pledged Bonds so delivered to the order
of the Bank. The Borrower further agrees to record through the Depository (if
the Pledged Bonds are held by a Depository in a book entry system) or cause the
Trustee to enter into its registration books (if the Bonds are not held by a
Depository in a book entry system), as the address to which payments of
principal, premium, if any, and interest with respect to Pledged Bonds are to be
sent, the Bank's address for notices pursuant to Section 12.13 hereof as in
effect from time to time.

                  (c)    If the Borrower shall become entitled to receive or
shall receive any Pledged Bonds, any payment of interest with respect to the
Pledged Bonds, or any and all other proceeds thereof, the Borrower shall accept
any such items as the Bank's agent, shall hold them in trust for the Bank, and
shall deliver them forthwith to the Bank in the exact form received, with the
Borrower's endorsement to the order of the Bank when necessary, to be held by
the Bank, subject to the terms hereof, as security for the payment and
performance of all obligations of the Borrower hereunder and under the other
Letter of Credit Documents, except that the Bank shall credit all payments and
proceeds received by the Bank directly against the Borrower's obligations under
Section 6.1 of this Agreement as provided below.

                  (d)    All principal, premium, if any, and interest paid on
the Pledged Bonds shall be retained by the Bank (or if received by the Borrower
shall be forthwith delivered by it to the Bank in the original form received)
and applied by the Bank to the payment of amounts due the Bank from the Borrower
hereunder and under the other Letter of Credit Documents.

                  (e)    If the Borrower makes or causes to be made to the Bank
a payment of a Remarketing Drawing pursuant to Section 6.1(b) hereof, or a
Remarketing Agent resells Pledged Bonds on behalf of the Borrower, the Bank
agrees to release from the lien of this Agreement and deliver (or record through
the Depository) to the Borrower or the Remarketing Agent, as the case may be,
Pledged Bonds, endorsed in blank without recourse (if not held by a Depository
in a book entry system) in an aggregate principal amount equal to the amount of
such payment with respect to principal so made, or the principal amount of the
Pledged Bonds so resold to the extent that the proceeds of such resale are
delivered to the Bank.

                  (f)    In addition to the rights and remedies granted to the
Bank in this Agreement, the Bank shall have all of the rights and remedies of a
secured party under Chapter 1309 of the Ohio Revised Code and such other rights
and remedies as are granted to a secured party in similar situations to the
extent of the security interest granted under paragraph (a) above.

                  (g)    The Borrower shall be liable for the deficiency if the
proceeds of any sale or other disposition of the Pledged Bonds by the Bank are
insufficient to pay all amounts to which the Bank is entitled, including
principal and interest as provided herein, and the reasonable fees of any
outside attorneys employed by the Bank to collect such deficiency.

                                       16
<PAGE>

            6.7   Reinstatement.
                  -------------

                  (a)    In connection with any Remarketing Drawing, upon
receipt by the Trustee of Pledged Bonds or Beneficial Ownership Interests for
the Bank's benefit in the aggregate principal amount equal to the unpaid amount
of the principal portion of such Remarketing Drawing delivered (or recorded
through the Depository) by the Borrower or on its behalf, registered or recorded
in the name of the Borrower as pledgor and the Bank as pledgee in accordance
with Section 6.6 hereof, the Trustee's right to draw on the Letter of Credit
shall automatically be reinstated in an amount equal to the principal portion
plus the interest portion of such Remarketing Drawing, or the aggregate
principal amount of such Bonds plus the interest portion of such Remarketing
Drawing, as the case may be.

                  (b)    In the event of an Interest Drawing, the Stated Amount
shall automatically be reinstated in the amount of the related Interest Drawing
at the close of business on the tenth day following the date of such drawing
unless the Bank shall have delivered to the Trustee a notice in the form of
Exhibit 5 to the Letter of Credit in the event the Bank has not been reimbursed
for such drawing or an Event of Default has occurred under this Agreement and is
continuing.

     7.     Representations and Warranties by the Borrower. As a material
            ----------------------------------------------
inducement to the Bank's entry into this Agreement and the transactions
contemplated hereby, the Borrower represents and warrants to the Bank, as of the
date of this Agreement and as of the date of issuance of the Letter of Credit,
that:

            7.1   Organization of the Borrower and the Guarantor. The Borrower
                  ----------------------------------------------
is a corporation duly organized, validly existing and in good standing under the
laws of the State of New Hampshire and the Guarantor is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Ohio. The Borrower and the Guarantor each (a) has all requisite power and
authority to conduct its business and to own and lease its properties, (b) is
duly qualified to do business in every jurisdiction in which the nature of
business conducted by it makes such qualification necessary or where failure to
so qualify would have a material adverse effect on its business or financial
condition or its performance of its obligations under the Letter of Credit
Documents, or the Bond Documents, and (c) is duly and validly licensed and holds
all permits and approvals necessary for the conduct of the business in which it
is engaged and for the intended use of the Project Facilities. The Borrower is
governed by its Articles of Incorporation, as amended, and Bylaws as amended,
and the Guarantor is governed by its Articles of Incorporation, as amended, and
Code of Regulations, as amended, true and correct copies of which have been
delivered to the Bank, which documents have not been further restated, amended
or modified and remain in full force and effect.

            7.2   Execution, Delivery and Performance of Letter of Credit
                  -------------------------------------------------------
Documents and Bond Documents.
----------------------------

                  7.2.1  The Borrower has all requisite power and authority to
execute and deliver, and to perform all of its obligations under, the Letter of
Credit Documents and the Bond

                                       17
<PAGE>

Documents, and shall execute and deliver to the Bank, prior to the issuance of
the Letter of Credit and as a condition thereto, a certificate evidencing the
due authorization of the signing corporate officer(s) of the Borrower to the
execution of the Letter of Credit Documents and Bond Documents and the entry by
the Borrower into the transactions contemplated thereby.

                  7.2.2  The execution and delivery by the Borrower of, and the
performance by the Borrower of all of its obligations under, each Letter of
Credit Document and Bond Document have been duly authorized by all necessary
corporate action and do not and will not:

                  (a)    require any consent or approval not heretofore obtained
of any shareholder, director or officer of the Borrower;

                  (b)    violate any provision of, or require any consent not
heretofore obtained under the Articles of Incorporation or Bylaws of the
Borrower;

                  (c)    result in or require the creation or imposition of any
mortgage, deed of trust, pledge, lien, security interest, claim, charge, right
of others, or other encumbrance of any nature (other than as contemplated under
the Letter of Credit Documents and the Bond Documents) upon or with respect to
any property or assets now owned or leased or hereafter acquired by the
Borrower;

                  (d)    violate any provision of any law, rule, regulation,
order, writ, judgment, injunction, decree, determination or award presently in
effect having applicability to the Borrower; or

                  (e)    result in a breach of or constitute a default under, or
cause or permit the acceleration of any obligation owed under, any indenture or
loan or credit agreement, lease, or instrument to which the Borrower is a party
or by which the Borrower or any of its property or assets is bound or affected.

                  7.2.3  At the time of execution of this Agreement, the
Borrower is not in default in any respect that is materially adverse to the
interests of the other parties to the Letter of Credit Documents or the Bond
Documents or the holders of the Bonds or that would have any material adverse
effect on the financial condition of the Borrower or the conduct of its business
under any law, rule, regulation, order, writ, judgment, injunction, decree,
determination, award, indenture, agreement, lease or instrument described in
Section 7.2.2(d) or Section 7.2.2(e), above.

                  7.2.4  No authorization, consent, approval, order, license,
exemption from, or filing or registration or qualification with, any court or
governmental department, public body, authority, commission, board, bureau,
agency, or instrumentality, not heretofore obtained or not reasonably obtainable
by the date of issuance and delivery of the Letter of Credit is or will be
required to authorize, or is otherwise required in connection with the
following:

                                       18
<PAGE>

                  (a)    the execution and delivery by the Borrower of, and the
performance by the Borrower of all of its obligations under, the Letter of
Credit Documents and the Bond Documents, or

                  (b)    the creation of the liens, security interests, or other
charges or encumbrances described in the Letter of Credit Documents and the Bond
Documents.

                  7.2.5  The officers of the Borrower executing the Letter of
Credit Documents and the Bond Documents on behalf of the Borrower are fully
authorized to do so.

                  7.2.6  Each of the Letter of Credit Documents and the Bond
Documents, when executed and delivered, will constitute the legal, valid, and
binding obligations of the Borrower (to the extent the Borrower is a party
thereto or obligated thereunder), enforceable against the Borrower in accordance
with its terms, except to the extent that its enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws and
equitable principles in effect from time to time affecting the rights of
creditors generally as such laws and insolvency, reorganization or moratorium
relate to the Borrower, and subject to limitations which may be imposed on
equitable remedies.

            7.3   Financial Statements. The Borrower has furnished to the Bank
                  --------------------
the financial statements for each of the Borrower and the Guarantor, and such
statements and any other financial statements or reports with respect to the
Borrower and the Guarantor submitted by the Borrower to the Bank fairly present
the financial position of the Borrower or the Guarantor respectively as of the
date thereof.

            7.4   No Material Adverse Change. There has been no material adverse
                  --------------------------
change in the condition, financial or otherwise, of the Borrower or the
Guarantor since the dates of the financial statements described in Section 7.3,
above.

            7.5   Tax Liability. Each of the Borrower and the Guarantor has
                  -------------
filed all tax returns (federal, state and local) required to be filed and has
paid all taxes shown thereon to be due and payable by the Borrower or the
Guarantor, respectively, and all property taxes due, including interest and
penalties, if any; provided, however, that neither the Borrower nor the
Guarantor shall be required to pay and discharge any such tax so long as the
legality thereof shall be promptly and actively contested in good faith and by
appropriate proceedings. Each of the Borrower and the Guarantor has established
and will maintain adequate reserves for tax liabilities, if any (including any
tax liabilities contested pursuant to this Section 7.5).

            7.6   Compliance with Laws. Each of the Borrower and the Guarantor
                  --------------------
is and shall remain in compliance in all material respects with all laws,
regulations and requirements applicable to its business and has obtained all
authorization, consents, approvals, orders, licenses, exemptions from, and has
accomplished all filings or registrations or qualifications with, any court or
governmental department, public body, authority, commission, board, bureau,
agency or instrumentality, that are necessary for the transaction of its
business.

                                       19
<PAGE>

            7.7   Litigation. There are no material actions, suits, or
                  ----------
proceedings pending or threatened against or affecting the Borrower, the
Guarantor, the Project, the Project Facilities, or assets of the Borrower or the
Guarantor before any court or governmental department, public body, authority,
commission, board, bureau, agency or instrumentality.

            7.8   Compliance with Requirements. The Borrower has obtained and
                  ----------------------------
examined all conditions, covenants, restrictions, easements, reservations,
rights of way and all applicable laws, ordinances, regulations, use permits,
occupancy permits, building permits and other requirements affecting or relating
to the Project and the Project Facilities of which it has knowledge after due
investigation or affecting or relating to acquisition, construction,
installation, renovation and equipping of the Project, and to best of the
Borrower's knowledge after due investigation the Project Facilities does not and
will not violate any of the same in any material respect and the intended use of
the Project Facilities will not be materially affected thereby.

            7.9   Statements. Any certificate or written statement or the most
                  ----------
recent projections furnished prior to the issuance of the Letter of Credit by
the Borrower to the Bank, the Issuer, the Trustee or any other Person in
connection with the negotiation of this Agreement or any of the other Letter of
Credit Documents or the Bond Documents or the transactions contemplated thereby
to the best knowledge of the Borrower after reasonable inquiry does not contain
any untrue statement of a material fact and does not omit any material fact
necessary to make the statements contained herein or therein, in the light of
the circumstances under which it was made, not misleading.

            7.10  Pension Plan Liabilities. No pension plan for the benefit of
                  ------------------------
the Borrower's employees ("Pension Plan") has been terminated; the Borrower has
not incurred any liability to the Pension Benefit Guaranty Corporation other
than for required insurance premiums which have been paid when due; no
Reportable Event described in Section 4043 ("Reportable Event") of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") or in the
regulations issued thereunder, or other event or condition which presents a risk
of termination of any Pension Plan by the Pension Benefit Guaranty Corporation
has occurred; the Borrower has not withdrawn from any pension plan prescribed in
Section 4001(a)(3) of ERISA, as amended by the Multiemployer Pension Plan
Amendment Act of 1980, as amended ("Multiemployer Plan") in a complete
withdrawal or a partial withdrawal; and no Pension Plan, and no other employee
pension benefit plan described in Section 3 of ERISA to which the Borrower is a
party, has engaged in a transaction prohibited under Sections 406 or 407 of
ERISA or under Section 4975 of the Internal Revenue Code of 1986, as amended.

            7.11  Environmental Protection. The Borrower (a) has no actual
                  ------------------------
knowledge of the permanent placement, burial or disposal of any Hazardous
Substances (as hereinafter defined) on any real property owned, leased, or used
by the Borrower including, but not limited to, the Project Site (the
"Premises"), of any spills, releases, discharges, leaks, or disposal of
Hazardous Substances that have occurred or are presently occurring on, under, or
onto the Premises, or of any spills, releases, discharges, leaks or disposal of
Hazardous Substances that have occurred or are occurring off the Premises as a
result of the Borrower's improvement, operation, or use of the Premises which
would result in non-compliance with any of the

                                       20
<PAGE>

Environmental Laws (as hereinafter defined); (b) is and has been in compliance
with all applicable Environmental Laws; (c) knows of no pending or threatened
environmental civil, criminal or administrative proceedings against the Borrower
relating to Hazardous Substances; (d) knows of no facts or circumstances that
would give rise to any future civil, criminal or administrative proceeding
against the Borrower relating to Hazardous Substances; and (e) will not permit
any of its employees, agents, contractors, subcontractors, or any other person
occupying or present on the Premises to generate, manufacture, store, dispose or
release on, about or under the Premises any Hazardous Substances which would
result in the Premises not complying with the Environmental Laws.

     As used herein, "Hazardous Substances" shall mean and include all hazardous
and toxic substances, wastes, materials, compounds, pollutants and contaminants
(including, without limitation, asbestos, polychlorinated biphenyls, and
petroleum products) which are included under or regulated by the Comprehensive
Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C.
(S)9601, et seq., the Toxic Substances Control Act, as amended, 15 U.S.C.
         -------
(S)2601, et seq., the Resource Conservation and Recovery Act, as amended, 42
         -------
U.S.C. (S)6901, et seq., the Water Quality Act of 1987, as amended, 33 U.S.C.
                -------
(S)1251, et seq., and the Clean Air Act, as amended, 42 U.S.C. (S)7401, et seq.,
         -------                                                        -------
and any other federal, state or local statute, ordinance, law, code, rule,
regulation or order regulating or imposing liability (including strict
liability) or standards of conduct regarding Hazardous Substances (hereinafter
the "Environmental Laws"), but does not include such substances as are
permanently incorporated into a structure or any part thereof in such a way as
to preclude their subsequent release into the environment, or the permanent or
temporary storage or disposal of household hazardous substances, and which are
thereby exempt from or do not give rise to any violation of the Environmental
Laws.

     The Borrower hereby indemnifies the Bank and holds the Bank harmless from
and against any loss, damage, cost, expense or liability (including strict
liability) directly or indirectly arising out of, or attributable to, the
generation, storage, release, threatened release, discharge, disposal or
presence of Hazardous Substances on, under or about the Premises (whether by the
Borrower, or any employees, agents, contractors or subcontractors of the
Borrower, or any predecessor in title or any third persons occupying or present
on the Premises), or the breach of any of the representations and warranties
regarding the Premises, including, without limitation: (a) those damages or
expenses arising under the Environmental Laws; (b) the costs of any repair,
cleanup or detoxification of the Premises, including the soil and ground water
thereof, and the preparation and implementation of any closure, remedial or
other required plans; (c) damage to any natural resources; and (d) all
reasonable costs and expenses incurred by the Bank in connection with clauses
(a), (b) and (c) including, but not limited to, reasonable attorneys' fees.

     The indemnification provided for herein shall not apply to any losses,
liabilities, damages, injuries, expenses or costs which: (i) arise from the
gross negligence or willful misconduct of the Bank, or (ii) relate to Hazardous
Substances placed or disposed of on the Premises after the Bank acquires title
to the Premises through foreclosure or otherwise.

            7.12  Year 2000 Compliance. (1) Borrower has (a) undertaken a
                  --------------------
detailed inventory, review, and assessment of all areas within and affecting its
business and operations

                                       21
<PAGE>

that could be adversely affected by its failure to be Year 2000 Compliant (as
hereinafter defined) on a timely basis; (b) developed a plan and time line for
becoming Year 2000 Compliant on a timely basis; and (c) to date, implemented
that plan in accordance with the specified timetable in all material respects;

            (2)   The Borrower reasonably anticipates that it will be Year 2000
Compliant on a timely basis; and

            (3)   Borrower shall deliver to the Bank: (a) immediately upon
becoming aware of the existence of any condition or event which constitutes or
will constitute, but for the passage of time or giving of notice or both, the
failure of the Borrower to be Year 2000 Compliant, a written notice specifying
the nature and period of existence thereof and what action the Borrower is
taking or proposes to take with respect thereto; and (b) at the request of Bank,
such information, documentation and materials as Bank may from time to time
reasonably require including, but not limited to, (i) the Borrower's Year 2000
plan and time line, (ii) any management or other letters from the Borrower's
accountants addressing or mentioning the Borrower's Year 2000 Compliance, and
(iii) such other information, documentation and materials as Bank may reasonably
request from time to time in order to confirm that the Borrower is Year 2000
Compliant and the method(s) used by the Borrower to become Year 2000 Compliant.

            As used herein, "Year 2000 Compliant" shall mean that all software,
embedded microchips and other processing capabilities utilized by the Borrower
or its key suppliers, vendors and customers will correctly process, sequence,
and calculate, without interruption, all date and date related data for all
dates to, through and after January 1, 2000, including leap year calculations,
and shall recognize, store and transmit date data in a format which clearly
indicates the correct century.

     8.     Affirmative Covenants of the Borrower. For so long as any obligation
            -------------------------------------
of the Borrower in connection with the Bond Documents, this Agreement or any of
the other Letter of Credit Documents remains outstanding, the Borrower shall,
unless the Bank otherwise consents in writing:

            8.1   Protection of Lien on Project Facilities. Maintain the lien
                  ----------------------------------------
created by the Mortgage as a first lien, subject only to Permitted Encumbrances,
upon the Project Facilities, and take such actions and execute and deliver to
the Bank such instruments and documents as the Bank may reasonably require from
time to time in connection therewith.

            8.2   Protection of Security Interest in Personal Property. Maintain
                  ----------------------------------------------------
the liens created by the Mortgage and the Security Agreement as first liens upon
the personal property comprising a portion of the Project Facilities and upon
all other tangible and tangible personal property of the Borrower, and take such
actions and execute and deliver to the Bank such instruments and documents as
the Bank may reasonably require from time to time in connection therewith,
including without limitation any form UCC-1 or UCC-2 financing statements,
continuation statements or other instruments and documents extending or
perfecting the security interest of the Bank in and to such personal property as
it may exist from time to time.

                                       22
<PAGE>

            8.3   Payment of Taxes, Assessments and Charges. Pay all taxes,
                  -----------------------------------------
assessments, charges and levies imposed by any public authority which are or may
become a lien affecting the Project Facilities or any part thereof, provided,
however, that the Borrower shall not be required to pay and discharge any such
tax, assessment, charge or levy so long as (a) the legality thereof shall be
promptly and actively contested in good faith and by appropriate proceedings and
(b) the Borrower maintains reserves adequate to pay any liabilities contested
pursuant to this Section 8.3.

            8.4   Undisbursed Bond Proceeds. If at any time it shall reasonably
                  -------------------------
appear to the Bank that the undisbursed portion of the Bond Proceeds and the
Borrower's equity funding are insufficient to pay for all work done or to be
done and all other expenses for the completion of the Project and to satisfy all
of the Borrower's obligations under this Agreement, the other Letter of Credit
Documents and the Bond Documents with respect thereto (including without
limitation all carrying costs of the Project and the payment of all lien claims
or rights to a claim for past work, supplies or materials), the Borrower shall,
within ten days following notice from the Bank to the Borrower of such
insufficiency, deposit with the Trustee in cash, or instruments satisfactory to
the Trustee and the Bank, the amount the Bank deems to be such insufficiency, or
otherwise demonstrate to the satisfaction of the Bank the availability of such
amount at times sufficient to meet all of such obligations of the Borrower, and
the Bank shall not be required to approve any further Disbursements unless and
until such deposit is made. Any amounts so deposited shall be placed in the
Project Fund and held and disbursed in accordance with the provisions of the
Trust Indenture for the disbursement of monies deposited therein.

            8.5   Insurance. Keep the Project Facilities insured in accordance
                  ---------
with and comply with the insurance provisions of the Mortgage.

            8.6   Escrow for Taxes, Assessments and Insurance. The Borrower
                  -------------------------------------------
shall deposit monthly with the Bank an amount equal to one-twelfth (1/12) of the
annual real estate taxes and assessments, and insurance premiums on the Project
Facilities, provided, however, that the deposit of such sums shall be waived as
long as the Borrower provides the Bank with satisfactory evidence of timely
payment of such taxes and insurance and no Event of Default has occurred and is
continuing.

            8.7   Governmental Approvals. Deliver to the Bank, from time to time
                  ----------------------
at the Bank's request, in form and substance satisfactory to the Bank, evidence
that the Borrower has complied in all material respects with all applicable
laws, ordinances, regulations and other requirements relating to the Project
Facilities, and that all necessary consents or approvals of any court or
governmental department, public body, authority, commission, board, bureau,
agency or instrumentality have been regularly and finally received with respect
to the Project Facilities, including without limitation each of the following as
applicable:

                  (a)    all zoning, land use and planning requirements;

                  (b)    all subdivision and/or parcel map requirements;

                                       23
<PAGE>

                  (c)    all environmental statutes, rules, regulations and
requirements;

                  (d)    all requirements imposed by any public utility in
connection with the use of the Project Facilities or the supply of utilities
thereto; and

                  (e)    all requirements imposed in connection with any use
permit, occupancy permit, building permit or other permit or approval required
by any governmental authority in connection with the Project Facilities.

            8.8   Compliance with Requirements. Comply with the lessor's
                  ----------------------------
obligations under any occupancy leases to tenants of the Project Facilities, or
any portion thereof, and all conditions, covenants, restrictions, easements,
reservations, rights, rights of way and all applicable laws, ordinances,
regulations, use permits, occupancy permits, building permits and other
requirements, including without limitation those affecting or relating to the
Project Site, the construction, installation , renovation and equipping of the
Project thereon or the Borrower's operations thereon of the Project Facilities.

            8.9   Books and Records. The Borrower and the Guarantor shall each
                  -----------------
maintain full and complete books of account and other records reflecting the
results of its respective operations (in conjunction with any other ventures as
well as specifically with respect to the Project Facilities) in accordance with
generally accepted accounting principles applied on a consistent basis, and
provide to the Bank, promptly after request by the Bank therefor, such financial
statements and other information pertaining to the Borrower and the Guarantor
and the assets and operations of the Borrower and the Guarantor as the Bank may
from time to time request. The Bank and its duly authorized agents shall have
the right to examine and make copies of all of the books and records of the
Borrower at reasonable times and at reasonable intervals.

            8.10  Notice of Litigation. Give notice to the Bank, within 10 days
                  --------------------
of the Borrower's learning thereof, of any of the following:

                  (a)    any litigation materially affecting or relating to the
Project Facilities;

                  (b)    any dispute between the Borrower and any municipal or
other governmental authority relating to the Project Facilities; and

                  (c)    any threat or commencement of proceedings in
condemnation or eminent domain relating to the Project Facilities.

            8.11  Notice of Certain Events. The Borrower shall promptly notify
                  ------------------------
the Bank if (a) the Borrower learns of the occurrence of any event which
constitutes, or will, with the passage of time or the giving of notice or both,
constitute an Event of Default or a default under this Agreement or any of the
other Letter of Credit Documents or any of the Bond Documents, together with a
detailed statement by the Borrower specifying the nature thereof and what action
the Borrower is taking or proposes to take with respect thereto, or (b) the
Borrower receives any

                                       24
<PAGE>

notice from, or the taking of any other action by, the holder of any promissory
note, debenture or other evidence of indebtedness of the Borrower or of any
security (as defined in the Securities Act of 1933, as amended) of the Borrower
with respect to a claimed default, together with a detailed statement by the
Borrower specifying the notice given or other action taken by such holder and
the nature of the claimed default and what action the Borrower is taking or
proposes to take with respect thereto, or (c) the Borrower learns of the
existence of any legal, judicial or regulatory proceedings affecting the
Borrower or the Guarantor or any of either of their properties or assets in
which the amount involved is material and is not covered by insurance or which,
if adversely determined, would cause a material, adverse change in the business,
prospects, profits, properties, assets or condition (financial or otherwise) of
the Borrower or the Guarantor, or (d) there shall occur or exist any other event
or condition causing a material adverse change in the business, prospects,
profits, properties, assets or condition (financial or otherwise) of the
Borrower or the Guarantor.

            8.12  Opinions and Notices. The Borrower shall deliver to the Bank,
                  --------------------
concurrently with the delivery thereof to the Trustee, a copy of each opinion of
counsel and notice given pursuant to the Bond Documents, addressed to the Bank.

            8.13  Defaults of Others. Use its best efforts to cure or cause to
                  ------------------
be cured all defaults of the Issuer or the Trustee under the Bond Documents, if
economically practical and/or required in order to avoid an Event of Default
under the Bonds.

            8.14  Security of Project Facilities. The Borrower shall take such
                  ------------------------------
measures to protect the physical security of the Project Facilities as the Bank
may reasonably deem advisable.

            8.15  ERISA. With respect to each of the Borrower's pension plans,
                  -----
if any, the Borrower shall: (a) at all times make prompt payment of
contributions required to meet the minimum funding standards set forth in
Section 302 through 305 of ERISA with respect to any such plan, (b) promptly,
after the filing thereof, furnish to the Bank copies of each annual report
required to be filed pursuant to Section 103 of ERISA in connection with any
such plan for the plan year, including any certified financial statements or
actuarial statements required pursuant to said Section 103, (c) notify the Bank
immediately of any fact, including, but not limited to, any "Reportable Event",
as that term is defined in Section 4043 of ERISA, arising in connection with the
plan which might constitute grounds for termination thereof by the Pension
Benefit Guaranty Corporation or for the appointment by the appropriate United
States District Court of a trustee to administer the plan, (d) notify the Bank
of any "Prohibited Transaction" as that term is defined in Section 406 of ERISA,
(e) not engage in any such Prohibited Transaction and (f) not terminate any such
plan in a manner which could result in the imposition of a lien on the property
of the Borrower pursuant to Section 4068 of ERISA.

            8.16  Payment of Taxes and Claims. The Borrower will pay before they
                  ---------------------------
become delinquent (a) all taxes, assessments and governmental charges or levies
imposed upon it or its property; and (b) all claims or demands of materialmen,
mechanics, carriers, warehousemen, landlords, bailees and other like persons
which, if unpaid, might result in the creation of a lien or encumbrance upon its
property, provided that items of the foregoing description need not be paid
          --------
while being contested in good faith and by appropriate proceedings and provided
                                                                       --------
further that

                                       25
<PAGE>

adequate book reserves have been established with respect thereto and provided
                                                                      --------
further that the Borrower's title to, and its right to use, its property is not
affected thereby.

            8.17  Maintenance of Property and Existence. Each of the Borrower
                  -------------------------------------
and the Guarantor shall (a) maintain its property in good condition and make all
renewals, replacements, additions, betterments and improvements thereto which
are deemed necessary by the Borrower or the Guarantor respectively; (b)
maintain, with financially sound and reputable insurers, insurance with respect
to its property and business against such casualties and contingencies, of such
types (including but not limited to fire and casualty, public liability,
products liability, larceny, embezzlement or other criminal misappropriation
insurance); (c) keep true books of records and accounts in which full and
correct entries will be made of all its business transactions, and reflect in
its financial statements adequate accruals and appropriations to reserves; (d)
do or cause to be done all things necessary (i) to preserve and keep in full
force and effect each of the Borrower's and the Guarantor's existence, rights
and franchises, and (ii) except as provided in Section 8.18 hereof, maintain
each of the Borrower's and the Guarantor's status as a corporation duly
organized, validly existing and in good standing under the laws of the state of
its organization; (e) not acquire, incur or assume directly or indirectly, any
material contingent liability in connection with the release of any toxic or
hazardous waste or substance into the environment, or dispose of, or allow to be
disposed of, or otherwise release hazardous or toxic substances or solid wastes
on or into any of the real property of the Borrower or the Guarantor, and (f)
not be in material violation of any laws, ordinances, or governmental rules and
regulations or fail to obtain any licenses, permits, franchises or other
governmental authorizations necessary to the ownership of its property or to the
conduct of its business, which violation or failure to obtain might materially
and adversely affect the business, prospects, profits, properties or condition
(financial or otherwise) of the Borrower or the Guarantor.

            8.18  Sale of Assets, Merger, Subsidiaries and Tradenames. The
                  ---------------------------------------------------
Borrower will not, without the prior written consent of the Bank, sell, lease,
transfer or otherwise dispose of, all, or substantially all, of its assets. The
Borrower will not, without the prior written consent of the Bank, consolidate
with or merge into any other entity, or permit any other entity to consolidate
with or merge into it. The Borrower has no subsidiaries and will not create or
acquire any subsidiaries or conduct business under any tradename, without the
prior written consent of the Bank, which consent shall not be unreasonably
withheld.

            8.19  Other Borrowings and Contingent Liabilities. Except for the
                  -------------------------------------------
obligations of the Borrower under the Bond Documents, the Letter of Credit
Documents, other indebtedness to the Bank, and purchase money financing
transactions secured by the item or items being purchased, the Borrower will not
(a) create or incur extensions of credit or indebtedness, including without
limitation, any indebtedness for borrowed money or advances, letters of credit,
or capitalized lease agreements except in the ordinary course of business, or
(b) guarantee, indorse or otherwise become surety for or upon the obligations of
others, except by endorsement of negotiable instruments for deposit or
collection in the ordinary course of business.

            8.20  Ownership and Management. Neither the Borrower nor the
                  ------------------------
Guarantor shall permit any material change in its ownership or management.

                                       26
<PAGE>

            8.21  Financial Statements. Deliver, or cause to be delivered, to
                  --------------------
the Bank the following:

                  (a)    Promptly and in any event within 90 days after the end
of each Fiscal Year, consolidated and consolidating financial statements for the
Borrower and the Guarantor for such Fiscal Year, audited and certified by an
independent accounting firm acceptable to the Bank, along with any management
letters written by such firm;

                  (b)    Copies of all such regular or periodic financial
statements or financial reports as each of the Borrower and the Guarantor shall
send to its shareholders;

                  (c)    Copies of all such regular or periodic reports which
are available for public inspection which the Borrower or the Guarantor may be
required to file with any Federal or state department, bureau, commission or
agency, including without limitation tax returns, as may from time to time be
requested by the Bank; and

                  (d)    Promptly and in any event within 90 days after the end
of each Fiscal Year, a certification of the chief executive officer or chief
financial officer of the Borrower that to the officer's actual knowledge, no
Event of Default or an event which, with the passage of time or giving of
notice, or both, would be an Event of Default has occurred and the Borrower is
in compliance with all covenants and agreements made by the Borrower and
contained in this Agreement or any of the Letter of Credit Documents or Bond
Documents.

            8.22  Interim Financial Statements. Deliver to the Bank within 30
                  ----------------------------
days after the end of each fiscal quarter:

                  (a)    financial statements, including a balance sheet and
statements of income and surplus, and cash flow certified by the chief executive
officers or chief financial officers of the Borrower and of the Guarantor,
respectively, as fairly representing the Borrower's and the Guarantor's
financial condition as of the end of such period, and

                  (b)    such further information as the Bank may reasonably
require.

            8.23  List of Personal Property. Deliver to the Bank, from time to
                  -------------------------
time, within thirty (30) days of the Bank's request therefor, a list of all of
the personal property securing repayment of the Borrower's obligations under the
Letter of Credit Documents, or if such a list has been delivered, deletions and
additions since the immediate prior delivered list, but such list shall not be
required to be delivered more frequently than annually.

            8.24  Tax Appeals. Bring, maintain and diligently prosecute any and
                  -----------
all actions, appeals and proceedings which are reasonably available to the
Borrower in order to challenge, reverse or set aside a Determination of
Taxability (as defined in the Trust Indenture).

            8.25  Copies of Leases. Give written notice to the Bank of the entry
                  ----------------
by the Borrower into any lease or other agreement pursuant to which any Person
is given any right to occupy or use any portion of the Project Facilities,
together with true and correct copies of each

                                       27
<PAGE>

such lease or other agreement. Each such lease or other agreement shall be
subject to approval by the Bank, which approval shall not be unreasonably
withheld, and each such lease or other agreement shall be assigned to the Bank
as additional security for the obligations of the Borrower. At the Bank's
option, all such leases and other agreements shall be subordinated to the
Mortgage.

            8.26  Maintenance and Furnishing of Project Facilities;
                  -------------------------------------------------
Substitutions and Removals. Maintain its properties, including without
--------------------------
limitation the Project Facilities, and each portion thereof (including without
limitation equipment, machinery and fixed assets) in good condition and repair,
said condition and repair to be in line with that of comparable facilities; and
not permit any waste with respect thereto; provided, however, that if the
Borrower, in its reasonable discretion, determines that any item of personal
property constituting a part of the Project Facilities shall have become
inadequate, obsolete, worn-out, unsuitable, undesirable or unnecessary or should
be replaced, the Borrower may remove such items providing that the Borrower
shall:

                  (a)    substitute and install as part of the Project
Facilities property of equal or greater utility and value (but not necessarily
fulfilling the same function in the operation of the Project Facilities) as the
removed property, which such substituted property shall be free from all liens
and encumbrances (other than Permitted Encumbrances) and shall become part of
the Project Facilities; or

                  (b)    in the case of removal of property without
substitution, promptly pay, if the aggregate of all such removals during any
calendar year exceeds $25,000 as hereinafter provided, to the Trustee for
deposit in the Bond Fund (as defined in the Trust Indenture), or if the Bonds
have been paid in full (or deemed to be paid and discharged pursuant to the
provisions of Article IX of the Trust Indenture) but amounts remain due under
this Agreement to the Bank, an amount equal to (i) if the removed property is
sold or scrapped, the proceeds of such sale or the scrap value thereof, or (ii)
if the removed property is used as a trade-in for property not to be installed
as part of the Project Facilities, the trade-in credit received by the Borrower.

     If, prior to any such removal, the Borrower shall have acquired and
installed personal property with its own funds which have become a part of the
Project Facilities, the Borrower may credit the amount so spent against the
requirement that it either substitute other property or make payment under this
Section on account of such removal, provided that such previously acquired and
installed property meets the requirements for substituted property under
subsection (a) of this Section.

     The Borrower shall promptly report to the Bank and the Trustee each such
removal, substitution, sale or other disposition having an annual aggregate
value in excess of $25,000 and shall pay to the Trustee or to the Bank, if
applicable, such amounts as are required by the provisions of the preceding
subsection (b) of this Section promptly after the sale, trade-in or other
disposition requiring such payment; provided, however, that no such payment need
be made until the amount to be paid to the Trustee or to the Bank, if the Bonds
have been paid in full (or are deemed to have been paid and discharged under
Article IX of the Trust Indenture) but

                                       28
<PAGE>

amounts remain due under this Agreement, on account of all such sales, trade-ins
or other dispositions not previously paid aggregates in any calendar year at
least $25,000.

     At the request of the Bank, the Borrower shall deliver to the Bank such
instruments, including financing statements and amendments thereto, as are
necessary or advisable to perfect the Bank's lien upon and security interest in
any personal property installed in substitution for any property removed
pursuant to this Section. Upon the request of the Borrower and compliance by the
Borrower with the terms of this Section, the Bank shall execute and deliver to
the Borrower appropriate instruments releasing any property removed pursuant to
this Section from the liens and security interests created by the Security
Documents.

            8.27  Deposit Accounts. The Borrower shall maintain its primary
                  ----------------
deposit accounts with the Bank.

            8.28. Optional Redemption of Bonds and Other Payments. The Borrower
                  -----------------------------------------------
shall cause the Bonds to be optionally redeemed in accordance with the
provisions of Section 4.01(c) of the Trust Indenture, on the first Business Day
of September in the following principal amounts in the years specified below:

          Year of Redemption on
            the First Business                      Principal Amount
             Day of September                        to be Redeemed
          ---------------------                     ----------------
          2000                                      $120,000
          2001                                       120,000
          2002                                       125,000
          2003                                       130,000
          2004                                       140,000
          2005                                       145,000
          2006                                       150,000
          2007                                       155,000
          2008                                       160,000
          2009                                       170,000
          2010                                       175,000
          2011                                       180,000
          2012                                       190,000
          2013                                       195,000
          2014                                       205,000
          2015                                       210,000
          2016                                       220,000
          2017                                       230,000
          2018                                       240,000
          2019 (Final Maturity)                      240,000

            The Borrower shall make a payment on or before the last Business Day
of each month commencing with the last Business Day of October, 1999 (each, a
"Principal Payment Date"), to the Trustee for deposit in the Bond Fund
maintained by the Trustee

                                       29
<PAGE>

pursuant to the Trust Indenture in an amount equal to one-twelfth of the
principal amount of Bonds to be so optionally redeemed on the next following
first Business Day of September provided, however, that the amount payable on
the Principal Payment Date immediately prior to the first Business Day of
September, 2000 shall be equal to one-sixth of the principal amount of the Bonds
to be optionally redeemed on the first Business Day of September, 2000. The
final payment due on the Principal Payment Date immediately prior to the
maturity date of the Bonds shall be an amount equal to the principal amount of
Bonds outstanding less the amount then on deposit in the Bond Fund and available
to reimburse the Bank for any drawings under the Letter of Credit.

     9.     Negative Covenants of the Borrower. For so long as any obligation of
            ----------------------------------
the Borrower in connection with this Agreement or any of the other Letter of
Credit Documents remains outstanding, the Borrower shall not, unless the Bank
otherwise consents in writing, which consent shall not be unreasonably withheld:

            9.1   Liens on Project Facilities. Create or cause or suffer to
                  ---------------------------
become effective any mortgage, deed of trust or like lien or encumbrance
affecting the Project Facilities or any portion of the same, except for the lien
of the Mortgage, Permitted Encumbrances, and taxes and assessments not
delinquent.

            9.2   Liens on Personal Property. Install in, or otherwise use in
                  --------------------------
connection with, the Project Facilities any personal property comprising a
portion of the Project Facilities under any security agreements, installment
purchase agreements or similar agreements however denominated (other than the
Security Documents) whereby the right is reserved or accrues to anyone to remove
or repossess any such items or whereby any Person other than the Bank reserves
or acquires a lien upon such items, except for purchase money security interests
arising in connection with the purchase by the Borrower of personal property,
which security interests are not outstanding for more than 60 days.

            9.3   Transfers of Project Facilities or Bond Document Obligations.
                  ------------------------------------------------------------
Assign or delegate any of the Borrower's obligations under the Bonds, this
Agreement or any of the other Letter of Credit Documents or Bond Documents, or,
except as otherwise expressly provided in the Mortgage, sell, lease, exchange,
convey, mortgage, assign, pledge, encumber or otherwise transfer the Project
Site, the Project Facilities, or any interest therein (except for (a)
dispositions of personal property permitted pursuant to Section 8.26 hereof, (b)
encumbrances permitted by the Mortgage, (c) leases permitted pursuant to Section
9.4 hereof and (d) easements, licenses, rights of way or title restrictions
granted pursuant to Section 9.5 hereof).

            9.4   Leases. Enter into any leases or other agreements pursuant to
                  ------
which any Person is given any right to occupy any portion of the Project
Facilities except in compliance with the applicable provisions of the Mortgage.

            9.5   Easements. Grant, convey or cause to be effective any
                  ---------
easement, license, right of way, or title restriction or limitation affecting
the Project Facilities or any portion of the same without the express prior
written consent of the Bank (which consent shall not be unreasonably withheld);
provided, however, that the Borrower may grant routine easements

                                       30
<PAGE>

which are reasonably necessary and required by governmental or quasi-
governmental entities or utility companies for the furnishing of utilities or
services to the Project Facilities without the requirement of such consent by
the Bank, so long as such easements shall not materially weaken, diminish or
impair the security of the Mortgage or interfere with the intended use of the
Project Facilities.

            9.6   Amendments to Documents. Enter into or agree to any amendment,
                  -----------------------
change or modification of, or any waiver of any provision of, or grant any
consent in respect of, the Trust Indenture, the Bonds or any of the Letter of
Credit Documents or Bond Documents.

            9.7   Nature of Business. Change its principal business from the
                  ------------------
business of the manufacture of products for the telecommunications industry.

     10.    [Reserved]

     11.    Events of Default and Remedies Upon Default.
            --------------------------------------------

            11.1  Events of Default. The occurrence of any one or more of the
                  -----------------
following, whatever the reason therefor, shall constitute an Event of Default
hereunder:

                  (a)    The Borrower shall fail to pay any amount of principal,
purchase price or interest or any other sum owing under this Agreement or any
other Letter of Credit Document on the due date thereof; or

                  (b)    The Borrower shall fail to perform or observe any other
term, covenant or agreement contained in this Agreement on its part to be
performed or observed (other than those terms, covenants or agreements contained
in Sections 8.3 or 8.5 hereof) and such failure shall continue for a period of
thirty (30) days after written notice of such failure by the Bank to the
Borrower, or the Borrower shall fail to perform or observe any term, covenant or
agreement contained in any other Letter of Credit Document on its part to be
performed or observed (other than those terms, covenants or agreements contained
in Sections 4 or 5 of the Mortgage) and the continuance thereof through the
expiration of any applicable grace period provided in such Letter of Credit
Document.

                  (c)    The Borrower shall fail to perform or observe any term,
covenant or agreement contained in (i) Sections 8.3 or 8.5 of this Agreement, or
(ii) Sections 4 or 5 of the Mortgage; or

                  (d)    The Borrower shall fail to cause the optional
redemption of Notes as provided in Section 8.28 hereof; or

                  (e)    The occurrence of an Event of Default (as that term is
defined in the Trust Indenture) under the Trust Indenture, except for an Event
of Default described in Section 7.01(g) or (h) of the Trust Indenture, or the
occurrence of an event of default under the terms of any other Bond Document or
any Letter of Credit Document, or the obligation to make

                                       31
<PAGE>

payment on the Bonds is accelerated for any reason other than the occurrence of
an Event of Default described in Section 7.01(g) or (h) of the Trust Indenture;
or

                  (f)    The Borrower shall fail to perform or observe any term,
covenant or agreement contained in any of the Bond Documents on its part to be
performed or observed and the continuance thereof through the expiration of any
applicable grace period provided in the Bond Documents; or

                  (g)    Any covenant, representation or warranty in any of the
Letter of Credit Documents or Bond Documents or in any certificate, agreement,
instrument or other document made or delivered pursuant to or in connection with
any of the Letter of Credit Documents or Bond Documents proves to have been
incorrect in any material respect when made; or

                  (h)    The Borrower or the Guarantor shall fail to pay any
indebtedness owing to any person other than the Bank totaling in the aggregate
in excess of $50,000, for borrowed money owing by the Borrower or the Guarantor
or any interest or premium thereon, for a period of thirty (30) consecutive days
after such indebtedness, interest or premium is due, whether such indebtedness
shall become due by scheduled maturity, by required prepayment, by acceleration,
by demand or otherwise, or the Borrower or the Guarantor shall fail to perform
for a period of thirty (30) consecutive days beyond any period of grace with
respect thereto any term, covenant or agreement on the Borrower's or the
Guarantor's part to be performed under any agreement or instrument evidencing or
securing or relating to such indebtedness owing by the Borrower or the Guarantor
when required to be performed, if, in each case, the effect of such failure is
to accelerate, or to permit the holder or holders of such indebtedness or the
trustee or trustees under any such agreement or instrument to accelerate, the
maturity of such indebtedness, unless such failure to perform shall be waived in
writing by the holder or holders of such indebtedness or such trustee or
trustees; or

                  (i)    Final judgment for the payment of money to any Person
other than the Bank shall be rendered against the Borrower or the Guarantor, in
excess of $50,000, net of any reimbursement to which the Borrower or the
Guarantor may be entitled, and the same shall remain undischarged for a period
of thirty (30) consecutive days during which execution shall not be effectively
stayed; or

                  (j)    The Borrower or the Guarantor shall (i) apply for or
consent to the appointment of a receiver, trustee, liquidator or custodian, (ii)
admit in writing the Borrower's or the Guarantor's inability to pay the
Borrower's or the Guarantor's debts generally as they become due, (iii) make a
general assignment for the benefit of creditors, (iv) be adjudicated bankrupt or
insolvent, (v) commence a voluntary case under the federal bankruptcy laws of
the United States of America or file a voluntary petition or answer seeking
reorganization, an arrangement with creditors or an order for relief or seek to
take advantage of any insolvency law or file an answer admitting the material
allegations of a petition filed against the Borrower or the Guarantor in any
bankruptcy, reorganization or insolvency proceeding; or action shall be taken by
the Borrower or the Guarantor for the purpose of effecting any of the foregoing,
or (vi) if without the application, approval or consent of the Borrower or the
Guarantor, a proceeding shall

                                       32
<PAGE>

be instituted in any court of competent jurisdiction, under any law relating to
bankruptcy, insolvency, reorganization, dissolution, winding up, liquidation, a
composition or arrangement with creditors, a readjustment of debts, the
appointment of a trustee, receiver, liquidator or custodian or the like of the
Borrower or the Guarantor, or of all or any substantial part of the assets of
the Borrower or the Guarantor, or other like relief in respect thereof under any
bankruptcy or insolvency law, and, if such proceeding is being contested by the
Borrower or the Guarantor in good faith, the same shall (A) result in the entry
of an order for relief or any such adjudication or appointment or (B) continue
undismissed, pending and unstayed, for any period of 60 consecutive days; or

                  (k)    The Project Facilities suffer a loss by fire or other
casualty in excess of $50,000 and such loss is not fully insured and any
deficiency in the amount of insurance proceeds paid with respect to such loss is
not deposited with the Bank within ten (10) days of the determination of such
deficiency; or

                  (l)    The Project Facilities, or any material portion
thereof, are subject to a material condemnation proceeding; or

                  (m)    The Borrower or the Guarantor defaults under the terms
and provisions of any other obligation owed to the Bank by the Borrower or the
Guarantor, or the occurrence of a default under any document or instrument
evidencing or securing such obligation and the continuance thereof through the
expiration of any applicable grace period provided in such document or
instrument; or

                  (n)    The Guaranty Agreement for any reason shall cease to be
a legal, valid and binding agreement or the Guarantor shall revoke, terminate or
in any other manner disavow the Guaranty Agreement or its obligations
thereunder, or the Guarantor shall fail to perform or observe any term, covenant
or agreement contained in the Guaranty Agreement and the continuance thereof
through the expiration of any applicable grace period provided in the Guaranty
Agreement; or

                  (o)    The Bank reasonably believes that the ability of the
Borrower to make its payments and perform its obligations under this Agreement
or the other Letter of Credit Documents has been materially, adversely impaired.

            11.2  Remedies Upon Default. Upon the occurrence of any Event of
                  ---------------------
Default, the Bank may, at its option, do any or all of the following:

                  (a)    Declare the principal of all amounts owing under this
Agreement and the other Letter of Credit Documents (including all obligations
secured by the Security Documents) and all other indebtedness of the Borrower to
the Bank, together with interest thereon, to be forthwith due and payable,
regardless of any other specified maturity or due date, without notice of
default, presentment or demand for payment, protest or notice of nonpayment or
dishonor, or other notices or demands of any kind or character, and without the
necessity of prior recourse to any security;

                                       33
<PAGE>

                  (b)    Implement any remedies available to the Bank under or
in connection with the Bond Documents, including without limitation instructing
the Trustee, in the Bank's sole discretion, to accelerate the maturity of the
Bonds and causing and paying a full or partial drawing under the Letter of
Credit (whether or not any amounts have previously been paid under the Letter of
Credit) and exercising all of the rights and remedies available to the Bank in
connection therewith;

                  (c)    If the Event of Default may be cured by the Bank by
taking actions or making payments of money, the Bank shall have the right (but
not the obligation) to take such actions (including without limitation the
retention of attorneys and the commencement or prosecution of actions on its own
behalf or on behalf of the Borrower), make such payments and pay for the costs
of such actions (including without limitation attorneys' fees and court costs)
from its own funds; provided, that the taking of such actions at the Bank's
expense or the making of such payments by the Bank out of the Bank's own funds
shall not be deemed to cure such Event of Default, and the same shall not be so
cured unless and until the Borrower shall have reimbursed the Bank for such
payment, together with interest at the Prime Rate plus two percent (2%), from
the date of such payment until the date of reimbursement. If the Bank advances
its own funds for such purposes, such funds shall be secured by the Security
Documents, notwithstanding that such advances may cause the total amount
advanced hereunder to exceed the amount committed to be advanced pursuant to
this Agreement, and the Borrower shall immediately upon demand reimburse the
Bank therefore with interest at the Prime Rate plus two percent (2%), from the
date of such advance until the date of reimbursement; and

                  (d)    Exercise any and all of its rights under the Letter of
Credit Documents or the Bond Documents, or otherwise as a secured creditor,
including, without limitation, foreclosing on any security, and exercising any
other rights with respect to security whether under the Security Documents or
any other agreement or as provided by law, all in such order and in such manner
as the Bank in its sole discretion may determine.

            11.3  Cumulative Remedies; No Waiver. All remedies of the Bank
                  ------------------------------
provided for herein are cumulative and shall be in addition to any and all other
rights and remedies provided in the Letter of Credit, the Security Documents,
the Bond Documents or any of the Letter of Credit Documents, or provided by law
from time to time. The exercise of any right or remedy by the Bank hereunder
shall not in any way constitute a cure or waiver of default hereunder or under
the Letter of Credit, the Security Documents, the Bond Documents, or any of the
Letter of Credit Documents, nor invalidate any notice of default or any act done
pursuant to any such notice, nor prejudice the Bank in the exercise of any
rights hereunder or under the Letter of Credit, the Security Documents, the Bond
Documents or the Letter of Credit Documents, unless in the exercise of said
right, the Bank realizes all amounts owed to it under the Letter of Credit, this
Agreement, the Security Documents, the Bond Documents and the Letter of Credit
Documents and all Events of Default are cured. No waiver by the Bank of any
default or breach by the Borrower hereunder shall be implied from any omission
by the Bank to take action on account of such default if such default persists
or is other than the default expressly made the subject of the waiver. Any such
express waiver shall be operative only for the time and to the extent therein
stated. Any waiver of any covenant, term or condition contained herein shall not
be construed as a waiver of any subsequent breach of the same covenant, term or
condition. The consent or

                                       34
<PAGE>

approval by the Bank to or of any act by the Borrower shall not be deemed to
waive or render unnecessary consent or approval to or of any subsequent act.

     12.    Miscellaneous.
            -------------

            12.1  Actions. The Bank shall have the right to commence, appear in
                  -------
and defend any action or proceeding affecting the rights or duties of the
Borrower hereunder or the payment of any funds, and in connection therewith the
Bank may pay necessary expenses, employ counsel and pay reasonable attorneys'
fees. The Borrower agrees to pay to the Bank, on demand, all costs and expenses
incurred by the Bank in connection therewith, including without limitation
reasonable attorneys' fees, together with interest from the date of expenditure
at the Prime Rate plus two percent (2%) (computed on the basis of a year of 360
days but calculated on the actual number of days outstanding). The Borrower's
obligation to repay such expenses shall be secured by the Security Documents.

            12.2  Nonliability of the Bank. The Borrower acknowledges and
                  ------------------------
agrees that:

                  (a)    The Bank shall not be responsible or liable to the
Borrower for the use which may be made of the Letter of Credit or for any acts
or omissions of the Trustee or any beneficiary or transferee in connection
therewith;

                  (b)    The Bank shall not be responsible or liable to the
Borrower for the validity, sufficiency or genuineness of documents (except as to
the Bank's signatures thereon), or of any endorsements thereon, even if such
documents should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent, or forged (except to the extent acceptance
or reliance upon such documents is a result of the Bank's gross negligence or
willful misconduct); and

                  (c)    The Bank shall not be responsible or liable to the
Borrower as a result of any circumstances in any way related to the making or
failure to make payment under the Letter of Credit, other than as a result of
the gross negligence or willful misconduct of the Bank.

            12.3  No Representations by the Bank. By accepting or approving
                  ------------------------------
anything required to be observed, performed or fulfilled, or to be given to the
Bank pursuant to this Agreement or any of the other Letter of Credit Documents
or Bond Documents, including any certificate, financial statement, survey,
appraisal or insurance policy, the Bank shall not be deemed to have warranted or
represented the sufficiency, legality, effectiveness or legal effect of the
same, or of any term, provision or condition thereof, and such acceptance or
approval thereof shall not be or constitute any warranty or representation to
anyone with respect thereto by the Bank. The Bank may accept documents in
connection with a drawing under the Letter of Credit which appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary and may accept documents in connection
with any of the other Letter of Credit Documents or Bond Documents which appear
on their face to be in order, without responsibility for further investigation.

                                       35
<PAGE>

            12.4  No Third Parties Benefited. This Agreement is made for the
                  --------------------------
purpose of defining and setting forth certain obligations, rights and duties of
the Borrower and Bank in connection with the Letter of Credit. It is made for
the sole protection of the Borrower and the Bank, and the Bank's successors and
assigns. No other Person shall have any rights of any nature hereunder or by
reason hereof, except to the extent that the Trustee is expressly granted rights
hereunder, or Participants are granted rights hereunder pursuant to
participation agreements with the Bank.

            12.5  Indemnity by the Borrower. The Borrower hereby indemnifies and
                  -------------------------
holds harmless the Bank and the Participants and their respective directors,
officers, agents and employees (collectively the "indemnitees") from and
against:

                  (a)    any and all claims, demands, actions or causes of
action that are asserted against any indemnitee by any Person if the claim,
demand, action or cause of action directly or indirectly relates to a claim,
demand, action or cause of action that the Person has or asserts against the
Issuer or the Borrower, whether in connection with the Letter of Credit, the
Bonds, any of the Bond Documents, any of the Letter of Credit Documents or this
Agreement, or otherwise;

                  (b)    any and all claims, demands, actions or causes of
action that are asserted against any indemnitee by any Person and arising from
or in connection with (i) any statement or omission, actual or alleged, in the
Bond Documents, or (ii) any breach or default, actual or alleged, of the
representations, warranties, covenants, conditions or agreements contained in
this Agreement or any of the other Letter of Credit Documents or in any of the
Bond Documents; and

                  (c)    any and all liabilities, losses, costs or expenses
(including court costs and attorneys' fees) that any indemnitee suffers or
incurs as a result of the assertion of any claim, demand, action or cause of
action specified in Section 12.5(a) or Section 12.5(b) of this Agreement.

            Any obligation or liability of the Borrower to any indemnitee as
provided in this Section 12.5 shall be secured by the Security Documents. The
indemnity contained in this Section 12.5 shall not extend to any claims,
demands, actions, causes of action, liabilities, losses, costs or expenses which
result solely from the gross negligence or willful misconduct of the Bank or to
the information set forth in Appendix A to the Official Statement.

            12.6  Commissions. The Borrower hereby indemnifies and holds the
                  -----------
Bank harmless from any responsibility, cost and/or liability, including any
attorneys' fees incurred, in connection with any claim by any Person for the
payment of any commission, charge or brokerage fee in connection with the Bonds
or any of the other transactions contemplated in connection with this Agreement
arising from any action taken, directly or indirectly, by or on behalf of the
Borrower.

            12.7  Binding Effect. This Agreement shall be binding upon and inure
                  --------------
to the benefit of the Borrower and its successors and assigns and the Bank and
its successors and

                                       36
<PAGE>

assigns, subject to the provisions of Sections 8.18 of this Agreement. The Bank
is authorized in its sole discretion to participate interests in the Letter of
Credit and security therefor to Participants.

            12.8  Execution in Counterparts. This Agreement and any other Letter
                  -------------------------
of Credit Document may be executed in any number of counterparts and any party
hereto or thereto may execute any counterpart, each of which when executed and
delivered will be deemed to be an original and all of which counterparts of this
Agreement or any other Letter of Credit Document, as the case may be, taken
together will be deemed to be but one and the same instrument. The execution of
this Agreement or any other Letter of Credit Document by any party hereto or
thereto will not become effective until counterparts hereof or thereof, as the
case may be, have been executed by all the parties hereto or thereto.

            12.9  Prior Agreements; Amendments; Consents. This Agreement
                  --------------------------------------
contains the entire agreement between the Bank and Borrower with respect to the
subject matter hereof, and all prior negotiations, understandings and agreements
with respect thereto are superseded by this Agreement. No amendment,
modification, supplement, termination or waiver of any provision of this
Agreement or any of the Letter of Credit Documents, and no consent to any
departure by the Borrower therefrom, may in any event be effective unless in
writing signed by the Bank, and then only in the specific instance and for the
specific purpose given.

            12.10 Cumulative Remedies; No Waiver. The rights, powers and
                  ------------------------------
remedies of the Bank under the Letter of Credit Documents are cumulative and not
exclusive of any right, power or remedy provided by law or equity or otherwise.
No failure or delay on the part of the Bank in exercising any right, power or
remedy may be, or may be deemed to be, a waiver thereof; nor may any single or
partial exercise of any right, power or remedy preclude any other or further
exercise of any other right, power or remedy.

            12.11 Inclusion of Expenditures in Indebtedness. All sums paid or
                  -----------------------------------------
expended by the Bank under the terms of this Agreement shall bear interest at
the Prime Rate plus two percent (2%) (calculated on the basis of a year of 360
days but calculated on the actual number of days outstanding), except as
otherwise provided herein, from the date such sums are paid or expended, shall
be secured by the Security Documents and shall be immediately due and payable by
the Borrower upon demand.

            12.12 Survival of Representations and Warranties. All
                  ------------------------------------------
representations and warranties of the Borrower contained herein or in any other
Letter of Credit Document will survive the delivery of the Letter of Credit, and
are material and have been or will be relied upon by the Bank, notwithstanding
any investigation made by or on behalf of the Bank. For the purpose of the
foregoing, all statements contained in any certificate, agreement or other
writing delivered by or on behalf of the Borrower pursuant hereto or pursuant to
any other Letter of Credit Document or in connection with the transactions
contemplated hereby or thereby shall be deemed to be covenants, representations
and warranties of the Borrower contained herein or in the other Letter of Credit
Documents, as the case may be.

                                       37
<PAGE>

            12.13 Notices. Unless otherwise expressly provided hereunder, all
                  -------
notices, requests, demands, directions and other communications provided for in
this Agreement and under any of the other Letter of Credit Documents must be in
writing and must be mailed, telecopied, telegraphed, delivered or sent by Telex
or cable to the appropriate party at its address as follows:

                  If to the Borrower:

                 Apex Telecommunications Manufacturing, Inc.
                 12 Simon Street
                 Nashua, New Hampshire 03087
                 Attention: Ms. Jill Dinsmore
                 Telecopier: (603) 598-6322

                 If to the Bank:

                 The Huntington National Bank
                 2313 Village Park Court
                 Mansfield, Ohio 44906
                 Attention: Mr. Glenn McClelland
                 Telecopier: (419) 747-7108

                 With a copy to:

                 The Huntington National Bank
                 41 South High Street
                 Columbus, Ohio 43215
                 Attention: International Division,
                            Letter of Credit Department
                 Telecopier: (614) 480-3761

Addresses for purposes of notice may be changed from time to time by written
notice sent to the other party and the Trustee in accordance with this Section
12.13. Any notice, request, demand, direction or other communication given by
telegram, telecopy, Telex or cable must be confirmed within 24 hours by letter
mailed or delivered to the appropriate party at such party's respective address.
If any notice, request, demand, direction or other communication is given by
mail it will be effective upon the earlier of (a) 48 hours after deposit in the
U.S. Mail, certified or registered mail, return receipt requested, postage
prepaid or (b) if given by telegraph, telecopy, cable or Telex, when delivered.

            12.14 Further Assurances. The Borrower shall, at its expense and
                  ------------------
without expense to the Bank, do, execute and deliver such further acts and
documents as the Bank from time to time reasonably requires for the purpose of
assuring and confirming unto the Bank the rights hereby created or intended now
or hereafter so to be, or for carrying out the intention or facilitating the
performance of the terms of any Letter of Credit Document, or for assuring the
validity of any security interest or lien under any Security Document.

                                       38
<PAGE>

            12.15 Governing Law. This Agreement shall be governed by, and
                  -------------
construed and enforced in accordance with, the laws of the State of Ohio.

            12.16 Severability of Provisions. Any provision in any Letter of
                  --------------------------
Credit Document that is held to be inoperative, unenforceable or invalid shall
be inoperative, unenforceable or invalid without affecting the remaining
provisions, and to this end the provisions of all Letter of Credit Documents are
declared to be severable.

            12.17 Headings. Article and section headings in this Agreement are
                  --------
included for convenience of reference only and are not part of this Agreement
for any other purpose.

            12.18 Time of the Essence. Time is of the essence for all purposes
                  -------------------
under this Agreement and the other Letter of Credit Documents.

            12.19 Waiver of Jury Trial. THE BANK AND THE BORROWER, AFTER
                  --------------------
CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER OF THEM MAY HAVE TO A TRIAL
BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY
RELATED INSTRUMENT OR AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED
THEREBY, OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN), OR ACTIONS OF EITHER OF THEM WITH RESPECT THERETO. THIS WAIVER SHALL
NOT IN ANY WAY EFFECT THE BANK'S ABILITY TO PURSUE REMEDIES PURSUANT TO ANY
WARRANT OF ATTORNEY OR COGNOVIT PROVISION CONTAINED HEREIN OR IN ANY RELATED
INSTRUMENT OR AGREEMENT. NEITHER THE BORROWER NOR THE BANK SHALL SEEK TO
CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY ACTION IN WHICH A JURY TRIAL HAS
BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT
BEEN WAIVED. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY
RESPECT OR RELINQUISHED BY EITHER THE BORROWER OR THE BANK EXCEPT BY A WRITTEN
INSTRUMENT EXECUTED BY BOTH OF THEM.

            12.20 Warrant of Attorney. The Borrower authorizes any attorney-at-
                  -------------------
law to appear in any Court of Record in the State of Ohio or in any other state
or territory of the United States after the above indebtedness becomes due,
whether by acceleration or otherwise, to waive the issuing and service of
process, and to confess judgment against the Borrower in favor of the Bank for
the amount then appearing due, together with costs of suit, and thereupon to
waive all error and all rights of appeal and stays of execution.

     IN WITNESS WHEREOF, the Borrower and the Bank have each caused this
Agreement to be executed on its behalf of its duly authorized officer as of the
date first above written.

                                       39
<PAGE>

WARNING--BY SIGNING THIS PAPER, YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL.  IF YOU DO NOT PAY ON TIME, A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT
OR ANY OTHER CAUSE.

APEX TELECOMMUNICATIONS MANUFACTURING, INC.

By  /s/ Sandra A. Frankhouse
   ------------------------------------

Title  Treasurer
     ----------------------------------

THE HUNTINGTON NATIONAL BANK

By  /s/ Glenn W. McClelland
   ------------------------------------

Title  Vice President
     ----------------------------------

                                       40
<PAGE>

                               LETTER OF CREDIT

                                         Irrevocable Letter of
                                         Credit No. XXXXXX
                                         Dated as of September 30, 1999

The Huntington National Bank,
 as Trustee
41 South High Street
Columbus, Ohio 43215
Attention: Corporate Trust Department

Ladies and Gentlemen:

     The Huntington National Bank (sometimes hereinafter referred to as the
"Bank") hereby establishes in your favor for the account of Apex
Telecommunications Manufacturing, Inc., a New Hampshire corporation (the
"Borrower"), its Irrevocable Letter of Credit No. XXXXXX (this "Letter of
Credit") in a maximum amount of up to $3,565,334 (as more fully described below)
effective immediately and expiring at 5:00 P.M., Ohio time, on September 15,
2004 (the "Expiration Date") unless terminated earlier in accordance with the
provisions hereof or unless extended by us.

     This Letter of Credit is being issued in connection with that certain Trust
Indenture (the "Trust Indenture") between the Business Finance Authority of the
State of New Hampshire (the "Issuer") and you dated as of September 1, 1999
pursuant to which the Issuer has agreed to authorize, issue and sell its certain
Adjustable Rate Demand Industrial Development Revenue Bonds, Series 1999 (Apex
Telecommunications Manufacturing, Inc. Project) (the "Bonds") in the aggregate
principal amount of $3,500,000, the payment of which is secured by, among other
things, this Letter of Credit. All capitalized terms used but not defined herein
shall have the meanings ascribed thereto in the Trust Indenture.

     As used in this Letter of Credit, the term "business day" shall mean any
day of the year, other than (a) a Saturday; (b) a Sunday; (c) a day on which
commercial banks located in the cities in which the principal corporate trust
office of the Trustee and the principal offices of the Bank and the Remarketing
Agent are located are required or authorized by law to remain closed; or (d) a
day on which The New York Stock Exchange is closed.

     You, as Trustee pursuant to the Trust Indenture, are hereby irrevocably
authorized to draw on us, for the account of the Borrower, in accordance with
the terms and conditions hereof and subject to increases and reductions in
amounts as hereinafter set forth, an aggregate amount not exceeding Three
Million Five Hundred Sixty-Five Thousand Three Hundred and Thirty-Four Dollars
($3,565,334) (the "Stated Amount"), of which (A) an aggregate amount not
exceeding $3,500,000 may be drawn upon for payment of (i) the unpaid principal
amount of the Bonds
<PAGE>

and/or (ii) for payment of that portion of the purchase price of the Bonds or
Beneficial Ownership Interests (as defined in the Indenture) corresponding to
the principal thereof tendered, or deemed tendered, to the Trustee for purchase
in accordance with the provisions of the Trust Indenture and the Bonds and not
remarketed and which (together with any interest portion of such purchase price
payable on such Bonds or Beneficial Ownership Interests pursuant to the
provisions of the Trust Indenture and Bonds) comprises a Remarketing Drawing,
and (B) an aggregate amount not exceeding $65,334 may be drawn upon for payment
of (i) up to 56 days' accrued interest on the Bonds at a maximum interest rate
of 12% per annum ("Interest Drawing") and/or (ii) for the payment of that
portion of a Remarketing Drawing corresponding to the interest portion thereof.

     Funds under this Letter of Credit are only available to you against your
sight draft(s) drawn on us, substantially in the form of Exhibit 1 hereto,
                                                         ---------
stating on (its)(their) face(s): "Drawn under The Huntington National Bank
Letter of Credit No. XXXXXX and upon your presenting to us one or more of the
following written certificates:

     (A) If the drawing is being made for payment of principal of the Bonds
whether due upon maturity, redemption or acceleration, a written certificate
signed by you in the form of Exhibit 2 attached hereto appropriately completed
                             ---------
(a "Principal Drawing");

     (B) If the drawing is being made for the payment of the purchase price of
the Bonds or Beneficial Ownership Interests tendered, or deemed tendered, to the
Trustee for purchase pursuant to Section 2.05 or Section 2.06 of the Trust
Indenture and not remarketed, a written certificate signed by you in the form of
Exhibit 3 attached hereto appropriately completed (a "Remarketing Drawing"); and
---------

     (C) If the drawing is being made for a payment of interest on the Bonds, a
written certificate signed by you in the form of Exhibit 4 attached hereto
                                                 ---------
appropriately completed (an "Interest Drawing").

     Presentation of such draft(s) and certificate(s) shall be made on a
business day at our office located at 41 South High Street, Columbus, Ohio 43215
(Attention: International Division, Letter of Credit Department) or any other
place which may be designated by us by written notice delivered to you. If we
receive any of your drafts drawn hereunder at such office, all in strict
conformity with the terms and conditions of this Letter of Credit, on or prior
to the termination hereof, we will honor the same and make payment hereunder. If
a draft and certificate are presented to us as aforesaid by 11:00 A.M.,
Columbus, Ohio time, payment will be made, in immediately available funds, by
11:00 A.M., Columbus, Ohio time on the next business day following presentment;
otherwise, payment will be made, in immediately available funds, by 11:00 A.M.,
Columbus, Ohio time on the second business day following presentment. If
requested by you, payment may be made by deposit of such funds into a designated
bank account that you maintain.

     If a demand for payment made by you hereunder and received by us does not,
in any instance, strictly conform to the terms and conditions of this Letter of
Credit, we shall give you prompt notice that the purported negotiation was not
effected in accordance with the terms and conditions of this Letter of Credit,
stating the reasons therefor and that we are holding any drafts

                                       2
<PAGE>

and documents at your disposal or are returning the same to you, as we may
elect. Upon being notified that the purported negotiation was not effected in
accordance with the terms of this Letter of Credit, you may attempt to correct
any such nonconforming demand for payment if, and to the extent that, you are
entitled (without regard to the provisions of this sentence) and able to do so.
Each demand for payment hereunder which is honored by us shall be paid solely
from our own immediately available general funds and not directly or indirectly
with any funds of the Borrower or any of its affiliates or from any funds or
collateral deposited, pledged, paid, assigned or otherwise transferred by (or on
behalf of) the Borrower or any of its affiliates with or to us for our account
or benefit.

     Upon payment of a drawing hereunder, the Stated Amount of this Letter of
Credit shall be reduced by the amount of such payment except as follows:

     (A) In connection with any Remarketing Drawing, upon receipt by the Trustee
of Bonds or Beneficial Ownership Interests for our benefit in the aggregate
principal amount equal to the unpaid amount of the principal portion of such
Remarketing Drawing delivered by you or on your behalf, registered in the name
of the Borrower as pledgor and our name as pledgee, your right to draw on us
shall automatically be reinstated in an amount equal to the principal portion
plus the interest portion of such Remarketing Drawing, or the aggregate
principal amount of such Bonds or Beneficial Ownership Interests plus the
interest portion of such Remarketing Drawing, as the case may be, and this
automatic reinstatement of your right to make a Remarketing Drawing shall be
applicable to successive Drawings so long as this Letter of Credit shall have
not terminated as set forth below.

     (B) In connection with any Interest Drawing, if you have not received from
us within ten (10) days from the date of your drawing a notice from us in the
form of the certificate attached hereto as Exhibit 5 appropriately completed,
                                           ---------
indicating we have not reinstated the Letter of Credit for all amounts drawn
under such Interest Drawing (such amounts shall be limited to up to 56 days'
interest accruing on the Bonds at a maximum interest rate of 12% per annum),
your right to draw on us by an Interest Drawing shall be automatically
reinstated in such amount and this automatic reinstatement of your right to make
an Interest Drawing shall be applicable to successive Interest Drawings so long
as this Letter of Credit shall have not terminated as set forth herein.

     Only you, as Trustee, or your transferee pursuant to the terms of this
Letter of Credit, may make a drawing under this Letter of Credit. Upon the
payment to you, as Trustee, of the amount specified in a draft drawn hereunder,
we will be fully discharged of our obligation under this Letter of Credit with
respect to such draft and shall not thereafter be obligated to make any further
payments under this Letter of Credit in respect of such draft to you or any
other person who may have made to you or makes to you a demand for payment of
principal of, purchase price of, or interest on any Note. By paying to you an
amount demanded in such draft we make no representation as to the correctness of
the amount demanded in such draft.

     This Letter of Credit applies only to the payment of principal (or that
portion of the purchase price corresponding to principal) of the Bonds, and up
to 56 days' interest (or that portion of the purchase price corresponding to
interest) accruing on the Bonds at a maximum interest rate of 12% per annum on
or prior to the expiration of this Letter of Credit and does not

                                       3
<PAGE>

apply to any interest that may accrue thereon or any principal or purchase price
which may be payable with respect thereto after such date.

     Upon the earliest of (i) the making by you of the final drawing available
to be made hereunder, (ii) our receipt of a written certificate signed by your
officer and by an officer of the Borrower in the form of Exhibit 6 hereto
                                                         ---------
appropriately completed, stating that: (a) no Bonds are Outstanding within the
meaning of the Trust Indenture; and (b) such officers, respectively, are duly
authorized to sign such certificate on behalf of you and the Borrower, (iii) the
date on which an Alternate Letter of Credit (as defined in the Trust Indenture)
becomes the "Letter of Credit" for all purposes under the Trust Indenture and
following our receipt of a written certificate signed by your officer and by an
officer of the Borrower in the form of Exhibit 7 hereto appropriately completed:
                                       ---------
(a) stating that an Alternate Letter of Credit has been accepted by the Trustee;
(b) setting forth the date on which such Alternate Letter of Credit becomes such
"Letter of Credit"; and (c) stating that such officers are duly authorized to
sign such certificate on behalf of you and the Borrower, respectively, or (iv)
the Expiration Date, this Letter of Credit shall automatically terminate and be
delivered to us for cancellation.

     This Letter of Credit is subject to the "Uniform Customs and Practice for
Documentary Credits, 1993 Revision, International Chamber of Commerce,
Publication No. 500" (the "Uniform Customs"). This Letter of Credit shall be
deemed to be made under the laws of the State of Ohio, and shall, as to matters
not governed by the Uniform Customs, be governed by and construed in accordance
with the laws of the State of Ohio.

     Communications with respect to this Letter of Credit shall be in writing
and shall be addressed to us at 41 South High Street, Columbus, Ohio 43215,
Attention: International Division, Letter of Credit Department, specifically
referring to the number of this Letter of Credit. We will address all
communications with respect to this Letter of Credit to the Trustee at the
address set forth on the front page hereof or to such other address as the
Trustee may direct in writing.

     In accordance with Article 48 of the Uniform Customs, this Letter of Credit
is transferable in its entirety to any transferee who has succeeded you as
Trustee under the Trust Indenture. Each letter of credit issued upon any such
transfer may be successively transferred. Transfer of the available balance
under this Letter of Credit to such transferee shall be effected by the
presentation to us of this Letter of Credit accompanied by a certificate
substantially in the form of Exhibit 8 attached hereto. Following such
                             ---------
presentation, and as soon as this original Letter of Credit is returned to us
and we have been paid our customary transfer fee, we shall forthwith transfer
the same to your transferee or, if so requested by your transferee, issue an
irrevocable letter of credit to your transferee with provisions therein
consistent with those of this Letter of Credit.

     This Letter of Credit sets forth in full our undertaking and shall not in
any way be modified, amended, amplified or limited by reference to any document,
instrument or agreement referred to herein (including, without limitation, the
Bonds and the Trust Indenture), except only the Certificate(s) and the draft(s)
referred to herein and the definitions of capitalized terms incorporated herein
by reference from the Trust Indenture; and any such reference shall not be

                                       4
<PAGE>

deemed to incorporate herein by reference any document, instrument or agreement
except for such certificate(s) and such draft(s).

                                   Very truly yours,

                                   THE HUNTINGTON NATIONAL BANK

                                   By: ____________________________

                                   Title: _________________________

                                       5
<PAGE>

                                   EXHIBIT 1
                                   ---------

                                  SIGHT DRAFT
                                  -----------

                                                          _______________, _____

FOR VALUE RECEIVED

Pay at Sight to: ________________________
U.S. __________________________ Dollars
(U.S. $______________)

Charge to account of Apex Telecommunications Manufacturing, Inc.

     Drawn under The Huntington National Bank Letter of Credit No. XXXXXX.

TO:  The Huntington National Bank
     International Division
     Letter of Credit Department
     41 South High Street
     Columbus, Ohio 43215

     The sum drawn does not exceed the difference between (I) the maximum
aggregate amount to be drawn under the Letter of Credit less (II) the aggregate
amount of all previous drawings made under the Letter of Credit for which The
Huntington National Bank has not reinstated, as certified to us in any
Certificate of Nonreinstatement heretofore delivered by you.

                              THE HUNTINGTON NATIONAL BANK,
                              as Trustee

                              By: _________________________
                              Title: ______________________

                                      1-1
<PAGE>

                                   EXHIBIT 2
                                   ---------

                      CERTIFICATE FOR "PRINCIPAL DRAWING"
                      ----------------------------------

             (PRINCIPAL UPON REDEMPTION, MATURITY OR ACCELERATION)

     The undersigned, a duly authorized officer of The Huntington National Bank,
as Trustee (the "Trustee"), hereby certifies to The Huntington National Bank
(the "Bank") with reference to The Huntington National Bank Irrevocable Letter
of Credit No. XXXXXX (the "Letter of Credit", the capitalized terms defined
therein and not defined herein being used as therein defined) issued by the Bank
in favor of the Trustee that:

     (1)  The Trustee is the Trustee under the Trust Indenture for the holders
of the Bonds. The total amount of Bonds outstanding (as defined in the Trust
Indenture) is $ ___________.

     (2)  The Trustee is making a drawing under the Letter of Credit with
respect to the payment of principal upon the Bonds.

     (3)  The amount of principal of the Bonds which is due and payable or which
will become due and payable within two business days after the date hereof is
$____________. The amount of the draft accompanying this Certificate does not
exceed such amount.

     (4)  The amount of the draft accompanying this Certificate, together with
the aggregate of all prior payments made pursuant to drawings under the Letter
of Credit for the payment of the principal amount of the Bonds, including
amounts under Remarketing Drawings representing the principal portion of the
purchase price of Bonds or Beneficial Ownership Interests thereunder which have
not been reinstated, does not exceed $3,500,000.

     (5)  This is a (partial) (final) drawing.

     (6)  The amount of the draft accompanying this Certificate was computed in
accordance with the terms and conditions of the Bonds and the Trust Indenture.

     (7)  Upon receipt by the Trustee of the amount demanded hereby, (a) the
Trustee will apply it directly to the payment when due of the appropriate amount
of principal owing on account of the Bonds pursuant to the Trust Indenture, (b)
no portion of it shall be applied by the Trustee for any other purpose, and (c)
no portion of it shall be commingled with other funds held by the Trustee. This
drawing is made in accordance with the provisions of the Trust Indenture.

                                      2-1
<PAGE>

     IN WITNESS WHEREOF, the Trustee has executed and delivered this certificate
as of the _______ day of __________________, _____.

                              THE HUNTINGTON NATIONAL BANK,
                              as Trustee

                              By: _____________________________
                              Title: __________________________

                                      2-2
<PAGE>

                                   EXHIBIT 3
                                   ---------

                     CERTIFICATE FOR "REMARKETING DRAWING"
                     ------------------------------------

 (PURCHASE PRICE OF BONDS OR BENEFICIAL OWNERSHIP INTERESTS TENDERED TO TRUSTEE
                        FOR PURCHASE AND NOT REMARKETED)

     The undersigned, a duly authorized officer of The Huntington National Bank,
as Trustee (the "Trustee"), hereby certifies to The Huntington National Bank
(the "Bank") with reference to The Huntington National Bank Irrevocable Letter
of Credit No. XXXXXX (the "Letter of Credit," the capitalized terms defined
therein and not defined herein being used as therein defined) issued by the Bank
in favor of the Trustee that:

     (1)  The Trustee is the Trustee under the Trust Indenture for the holders
of the Bonds. The total aggregate principal amount of the Bonds Outstanding (as
defined in the Trust Indenture) is $_________.

     (2)  The Trustee is making a drawing under the Letter of Credit to pay,
pursuant to Section 5.04 of the Trust Indenture, the purchase price of the Bonds
or Beneficial Ownership Interests which have been tendered to the Trustee for
purchase or are deemed to have been so tendered pursuant to the terms of the
Trust Indenture and not remarketed pursuant to Section 6.18 of the Trust
Indenture.

     (3)  The Trustee (a) is in possession of funds in the Remarketing
Reimbursement Fund equal to, or of Bonds or Beneficial Ownership Interests with
an aggregate principal amount outstanding equal to, the portion of the amount of
the draft accompanying this Certificate representing the principal portion of
the purchase price of such Bonds or Beneficial Ownership Interests and, unless
the Bank has notified the Trustee in writing that it has been reimbursed in full
for the amount of this Remarketing Drawing, the Trustee will deliver or cause to
be delivered to the Bank, or to its designated agent, within three (3) business
days after the date of this Certificate, a principal amount of such Bonds, or
evidence that such Beneficial Ownership Interests are, registered in the name of
the Borrower as pledgor and the Bank as pledgee, equal to the amount of the
draft accompanying this Certificate representing the principal portion of the
purchase price of such Bonds or Beneficial Ownership Interests for which the
Bank has not been reimbursed by the Trustee on the date of such Remarketing
Drawing; (b) acknowledges the pledge by the Borrower to the Bank of the Bonds
delivered, and Beneficial Ownership Interests registered, pursuant to
subparagraph (a); and (c) agrees that all payments of principal and interest
made on such Bonds shall be made to the Bank, so long as the Bank is the pledgee
of such Bonds.

     (4)  The aggregate principal amount of the Bonds or Beneficial Ownership
Interests tendered or deemed tendered to the Trustee for purchase pursuant to
Section 6.18 of the Trust Indenture is $____________. The interest portion of
the purchase price for such Bonds or Beneficial Ownership Interests, if any, is
$__________.  The amount of the draft accompanying

                                      3-1
<PAGE>

this Certificate does not exceed the sum of such amounts due as the purchase
price of such Bonds or Beneficial Ownership Interests.

     (5)  The principal amount of the draft accompanying this Certificate,
together with the aggregate of all prior principal payments made pursuant to
Remarketing Drawings which have not been reinstated under the Letter of Credit
for the payment of the principal portion of the purchase price of the Bonds and
Beneficial Ownership Interests and Principal Drawings, does not exceed
$3,500,000. The interest amount of the draft accompanying this Certificate,
together with the aggregate of all prior interest payments made pursuant to
Remarketing Drawings which have not been reinstated under the Letter of Credit
for the interest portion of the purchase price of the Bonds and Beneficial
Ownership Interests and Interest Drawings which have not been reinstated under
the Letter of Credit, does not exceed $65,334.

     (6)  Upon receipt by the Trustee of the amount demanded hereby, (a) the
Trustee will apply it directly for the purpose of payment of the purchase price
of the Bonds or Beneficial Ownership Interests referenced in Paragraph 2 hereof,
(b) no portion of it shall be applied by the Trustee for any other purpose, and
(c) no portion of it shall be commingled with other funds held by the Trustee.
This drawing is made in accordance with the provisions of the Trust Indenture.

     (7)  The amount of the draft accompanying this Certificate was computed in
accordance with the terms and conditions of the Bonds and the Trust Indenture.

     IN WITNESS WHEREOF, the Trustee has executed and delivered this certificate
as of the _______ day of ________________________, ________.

                                  THE HUNTINGTON NATIONAL BANK, as Trustee

                                  By: ____________________________
                                  Title: _________________________

                                      3-2
<PAGE>

                                   EXHIBIT 4
                                   ---------

                      CERTIFICATE FOR "INTEREST DRAWING"
                      ----------------------------------

                              (ACCRUED INTEREST)

     The undersigned, a duly authorized officer of The Huntington National Bank,
as Trustee (the "Trustee"), hereby certifies to The Huntington National Bank
(the "Bank") with reference to The Huntington National Bank Irrevocable Letter
of Credit No. XXXXXX (the "Letter of Credit," the capitalized terms, defined
therein and not defined herein being used as therein defined) issued by the Bank
in, favor of the Trustee that:

     (1)  The Trustee is the Trustee under the Trust Indenture for the holders
of the Bonds. The total amount of Bonds outstanding (as defined in the Trust
Indenture) is $__________.

     (2)  The Trustee is making a drawing under the Letter of Credit in respect
of payment of accrued and unpaid interest on the Bonds.

     (3)  Interest on the Bonds which is due and payable, or which will become
due and payable within two business days after the date hereof, and the amount
of the draft accompanying this Certificate does not exceed the amount available
on the date hereof to be drawn under the Letter of Credit in respect of payment
of interest accrued on the Bonds.

     (4)  The amount of interest accrued on the Bonds which is due and payable
is $_____________. The amount of the draft accompanying this Certificate does
not exceed such amount due as interest or in respect of interest.

     (5)  The amount of the draft accompanying this Certificate, together with
the aggregate of all prior payments made pursuant to drawings under the Letter
of Credit in respect of the payment of interest accrued on the Bonds which, as
certified to us by the Bank, the Bank has not reinstated (including the interest
portion of any Remarketing Drawing which has not been reinstated), does not
exceed $65,334.

     (6)  The amount of the draft accompanying this Certificate was computed in
accordance with the terms and conditions of the Bonds and the Trust Indenture.

     (7)  Upon receipt by the Trustee of the amount demanded hereby, (a) the
Trustee will apply it directly to the payment when due of the appropriate amount
of interest owing on account of the Bonds pursuant to the Trust Indenture, (b)
no portion of it shall be applied by the Trustee for any other purpose, and (c)
no portion of it shall be commingled with other funds held by the Trustee. This
drawing is made in accordance with the provisions of the Trust Indenture.

                                      4-1
<PAGE>

     IN WITNESS WHEREOF, the Trustee has executed and delivered this certificate
as of the ______ day of _____________________, ______.

                                    THE HUNTINGTON NATIONAL BANK,
                                    as Trustee

                                    By: ________________________________

                                    Title: _____________________________

                                      4-2
<PAGE>

                                   EXHIBIT 5
                                   ---------

                        CERTIFICATE OF NONREINSTATEMENT
                   OF AMOUNTS AVAILABLE FOR INTEREST DRAWING
                 UNDER IRREVOCABLE LETTER OF CREDIT NO. XXXXXX
                 ---------------------------------------------

     The undersigned, a duly authorized officer of The Huntington National Bank
(the "Bank"), hereby certifies to the Trustee under the Trust Indenture dated as
of September 1, 1999 between the Business Finance Authority of the State of New
Hampshire and The Huntington National Bank, as trustee (the "Trustee") with
reference to The Huntington National Bank Irrevocable Letter of Credit No.
XXXXXX (the "Letter of Credit") issued by the Bank in favor of the Trustee that
the amount drawn by the Trustee pursuant to its Interest Drawing dated as of
____________________________ has not been reinstated either (a) because the Bank
has not been reimbursed for such Drawing or (b) because an Event of Default has
occurred under the Reimbursement Agreement dated as of September 1, 1999 between
the Bank and the Borrower, as defined in the Letter of Credit, pursuant to which
the Letter of Credit is issued, and is continuing.

     Except as herein expressly set forth, all other terms and conditions of the
Letter of Credit remain unchanged.

     IN WITNESS WHEREOF, the Bank has executed and delivered this certificate as
of the _________ day of __________________, _____.

                                    THE HUNTINGTON NATIONAL BANK

                                    By: _____________________________

                                    Title: __________________________

                                      5-1
<PAGE>

                                   EXHIBIT 6
                                   ---------

                   CERTIFICATE THAT NO BONDS ARE OUTSTANDING
                   -----------------------------------------

The Huntington National Bank
International Division,
Letter of Credit Department
41 South High Street
Columbus, Ohio 43215

     Re:  The Huntington National Bank
          Irrevocable Letter of Credit No XXXXXX
          --------------------------------------

Ladies and Gentlemen:

     The undersigned, a duly authorized officer of The Huntington National Bank,
as Trustee (the "Trustee"), and a duly authorized officer of Apex
Telecommunications Manufacturing, Inc. (the "Borrower"), hereby certify to The
Huntington National Bank (the "Bank") with reference to The Huntington National
Bank Irrevocable Letter of Credit No. XXXXXX (the "Letter of Credit," the
capitalized terms defined therein and not defined herein being used as therein
defined) issued by the Bank in favor of the Trustee that:

     (1)  The Trustee is the Trustee under the Trust Indenture for the holders
of the Bonds.

     (2)  No Bonds are outstanding within the meaning of the Trust Indenture.

     (3)  The undersigned officers are duly authorized to sign this certificate
on behalf of the Trustee and the Borrower, respectively.

     Pursuant to the Indenture, we are delivering herewith the Letter of Credit
for cancellation.

                                      6-1
<PAGE>

     IN WITNESS WHEREOF, the Trustee and the Borrower have executed and
delivered this certificate as of the _____ day of ________________________,
______.

                    THE HUNTINGTON NATIONAL BANK,
                    as Trustee

                    By: ______________________________

                    Title: ___________________________

                    APEX TELECOMMUNICATIONS
                    MANUFACTURING, INC.

                    By: ______________________________

                    Title: ___________________________

                                      6-2
<PAGE>

                                   EXHIBIT 7
                                   ---------

            CERTIFICATE OF ACCEPTANCE OF ALTERNATE LETTER OF CREDIT
            -------------------------------------------------------

The Huntington National Bank
International Division,
Letter of Credit Department
41 South High Street
Columbus, Ohio 43215

     Re:  The Huntington National Bank
          Irrevocable Letter of Credit No. XXXXXX
          ---------------------------------------

Ladies and Gentlemen:

     The undersigned, a duly authorized officer of The Huntington National Bank,
as Trustee (the "Trustee"), and a duly authorized officer of Apex
Telecommunications Manufacturing, Inc. (the "Borrower"), respectively, hereby
certify to The Huntington National Bank (the "Bank") with reference to The
Huntington National Bank Irrevocable Letter of Credit No. XXXXXX (the "Letter of
Credit," the capitalized terms defined therein and not defined herein being used
as therein defined) issued by the Bank in favor of the Trustee that:

     (1) The Trustee is the Trustee under the Trust Indenture for the holders of
the Bonds.

     (2) An Alternate Letter of Credit (as defined in the Trust Indenture) has
been accepted by the Trustee.

     (3) The date on which such Alternate Letter of Credit becomes the "Letter
of Credit" for all purposes under the Trust Indenture is ____________________,
______.

     (4) The undersigned officers are duly authorized to sign this certificate
on behalf of the Trustee and the Borrower, respectively.

                                      7-1
<PAGE>

     IN WITNESS WHEREOF, the Trustee and Borrower [and the Original Purchaser]
have executed and delivered this certificate as of the _____ day of
___________________, ______.

                    THE HUNTINGTON NATIONAL BANK,
                    as Trustee

                    By: _____________________________

                    Title: __________________________

                    APEX TELECOMMUNICATIONS
                    MANUFACTURING INC.

                    By: _____________________________

                    Title: __________________________

                                      7-2
<PAGE>

                                   EXHIBIT 8
                                   ---------

               TRANSFER OF LETTER OF CREDIT TO SUCCESSOR TRUSTEE
               -------------------------------------------------

                                                         ________________, _____

The Huntington National Bank
International Division,
Letter of Credit Department
41 South High Street
Columbus, Ohio 43215

          Re:  The Huntington National Bank
               Irrevocable Letter of Credit No. XXXXXX
               ---------------------------------------

Ladies and Gentlemen:

     For value received, the undersigned beneficiary hereby irrevocably
transfers to:

                             (Name of Transferee)

                                   (Address)

all rights of the undersigned beneficiary to draw under the above Letter of
Credit in its entirety.

     By this transfer, all rights of the undersigned beneficiary in and to such
Letter of Credit are transferred to the transferee and the transferee shall have
the sole rights as beneficiary thereof, including sole rights relating to any
amendments, whether increases or extensions or other amendments and whether now
existing or hereafter made. All amendments are to be advised direct to the
transferee without necessity of any consent of or notice to the undersigned
beneficiary.

                                      8-1
<PAGE>

     The advise of such Letter of Credit is returned herewith, along with your
customary transfer fee, and we ask you either to endorse the transfer on the
reverse thereof and forward it directly to the transferee with your customary
notice of transfer, or to issue a replacement letter of credit, as requested by
the transferee.

                              Very truly yours,

                              [name of beneficiary]

                              By: ___________________________

                              Title: ________________________

SIGNATURE AUTHENTICATED

__________________________________
(Bank)

__________________________________
(Authorized Signature)

                           ACCEPTANCE BY TRANSFEREE
                           ------------------------

     The undersigned transferee of the above-captioned Letter of Credit hereby
acknowledges transfer to it as beneficiary of the Letter of Credit, acknowledges
that it has become the successor Trustee under the terms and conditions of that
certain Trust Indenture by and between the Business Finance Authority of the
State of New Hampshire and The Huntington National Bank, as trustee, dated as of
September 1, 1999, and requests that The Huntington National Bank [endorse the
transfer on the reverse of the Letter of Credit and forward it directly to the
undersigned transferee with your customary notice of transfer] [issue a
replacement letter of credit with provisions consistent with the Letter of
Credit].

                              [Name of Transferee]

                              By: ____________________________

                              Title: _________________________

                                      8-2
<PAGE>

                                   EXHIBIT B

                                 (Page 1 of 4)

     Four certain parcels of land, with the buildings and improvements thereon,
situated in Nashua, Hillsborough County, New Hampshire described as follows:

PARCEL 1 beginning at a stone bound on the southwesterly corner of Parcel IV,
--------
said stone bound being the northerly sideline of Will Street and at land now or
formerly of Edgcomb Steel of New England, Inc.; thence

1.        North 23(degrees) 30' 00" west by land now or formerly of said Edgcomb
          Steel of New England, Inc. a distance of 734.24 feet to a stone bound;
          thence

2.        North 66(degrees) 30' 40" east by said Edgcomb land a distance of
          24.00 feet to a stone bound on the southerly sideline and end of Ledge
          Street and at land formerly of Royal Business Forms, Inc.; thence

3.        South 23(degrees) 30' 00" east by said Royal land a distance of 524.47
          feet to a point; thence

4.        South 44(degrees) 36 20" east by said Royal land a distance of 224.94
          feet to a point on the north side of Will Street; thence

5.        South 66(degrees) 32' 55" west by the north line of Will Street a
          distance of 105.00 feet to the point of beginning.

Said premises being shown on plan of property in Nashua, New Hampshire belonging
to Edgcomb Steel of New England, Inc. and Higgs Company, dated November 17,
1965, prepared by David Hamilton and recorded in the Hillsborough County
Registry of Deeds at Plan 3220.

PARCEL II situated on the northerly side of Will Street and the westerly side of
---------
Simon Street and described as follows:

     Beginning at a stone bound at the intersection of the north line of Will
Street and the west line of Simon Street; thence

     1.   Running northerly by the west line of Simon Street 350 feet to a stake
          at land of the Nashua, New Hampshire Foundation; thence

     2.   Turning and running westerly by an interior angle of 90(degrees) and
          by said other land of Nashua, New Hampshire Foundation 300 feet to a
          stake at other land of Royal Realty Company, Inc.; thence
<PAGE>

                                   EXHIBIT B

                                 (Page 2 of 4)

     3.   Turning and running southerly by an interior angle of 90(degrees) and
          by said other land of Royal Realty Company, Inc. 350 feet to a stake
          set in the north line of said Will Street; thence

     4.   Turning and running easterly by the north line of said Will Street 300
          feet to the point of beginning.

PARCEL III situated on the north side of Will Street being shown as Lot 3 on
----------
Plan o Land entitled "Land of Higgs Company and Royal Realty Co., Inc., Nashua,
New Hampshire, Robert J. Trombley, Civil Engineer, dated June 1958, recorded in
the Hillsborough County Registry of Deeds as Plan #1598, and further bounded and
described as follows:

     Beginning at a point in the north line of Will Street at the southeast
corner of the herein conveyed premises and at the southwest corner of other land
of Royal Realty Company, Inc.; thence

     1.   Running northerly by said other land now or formerly of Royal Realty
          Company, Inc. 350 feet to land of the Nashua, New Hampshire
          Foundation; thence

     2.   Turning and running westerly by a 90(degrees) angle with the next
          previous course, 126 feet to the east line of the railroad sidetrack
          right of way, as shown on said Plan; thence

     3.   Turning and running southerly by the east line of said railroad
          sidetrack right of way, 140 feet to a point; thence

     4.   Turning and running southeasterly by the line of said right of way 225
          feet to a point in the north line of Will Street, thence

     5.   Turning and running easterly by the north line of Will Street, 45 feet
          to the place of beginning.

PARCEL IV situated on the west line of Simon Street and the south line of Ledge
---------
Street bounded and described as follows:

Beginning at a stone bound at the northeast corner of the herein-described
premises and at the intersection of the west line of Simon Street and the south
line of Ledge Street; thence

     1.   South 81(degrees) west 426 feet by the south line of Ledge Street to a
          stone bound; thence

     2.   South 9(degrees) east 384.6 feet to a stone bound at land formerly of
          Royal Realty Inc., now of Arthur Corey; thence
<PAGE>

                                   EXHIBIT B

                                 (Page 3 of 4)

     3.   North 81(degrees) east 426 feet to a drill hole in a rock at the west
          line of Simon Street; thence

     4.   North 9(degrees) west by the west line of Simon Street 384.6 feet to
          the point of beginning, and being part of Lot 3 as shown on the plan
          of land know as Nashua, New Hampshire Foundation Industrial Park, said
          plan being recorded in Hillsborough County Registry of Deeds as Plan
          1697.

     EXCEPTING AND RESERVING, however, the portion of the foregoing described
tract which was conveyed by Royal Business Forms, Inc. to R. Dexter Brown by
deed dated April 17, 1968 and recorded in Hillsborough County Registry of Deeds
in Volume 2008 at page 142, and described therein as follows:

     The tract of land at the west line of Simon Street and the south line of
Ledge Street in Nashua, Hillsborough County, New Hampshire, bounded and
described as follows:

     Beginning at a stone bound at the northeast corner of the herein-described
premises and at the intersection of the west line of Simon Street and the south
line of Ledge Street; thence

     1.   South 81(degrees) west 240 feet by the south line of Ledge street to a
          point; thence

     2.   South 9(degrees) east 165 feet to a point; thence

     3.   North 81(degrees) east 240 feet to a paint in the west line of Simon
          Street; thence

     4.   North 9(degrees) west by the west line of Simon Street 165 feet to the
          point of beginning.

     Containing 39,600 square feet, more or less, being part of Lot 3 as shown
on the plan of land of Nashua, New Hampshire Foundation Industrial Park, said
plan being recorded in Hillsborough County Registry of Deeds as Plan 1697.

     The above parcels are also depicted upon a "Boundary Plan of Map E Lots 149
and 252 in Nashua, NH prepared for Simon Street Associates, Inc." dated June 1,
1993, recorded in the Hillsborough County Registry of Deeds as Plan No. 26518.

EXCEPTING, EXCLUDING AND RESERVING from the above described parcels so much land
as was conveyed to the State of New Hampshire by deed of Simon Street
Associates, Inc. dated March 12, 1998, recorded in the Hillsborough County
Registry of Deeds in Book 5912, Page 1960.

Parcels I through IV less exceptions being further described on the following
page.
<PAGE>

                                   EXHIBIT B

                                 (Page 4 of 4)

                             Legal Description for
                                   land of:
                  APEX TELECOMMUNICATIONS MANUFACTURING INC.

     Beginning at a point at the intersection of the westerly right-of-way of
Simon Street and the northerly intersection of Will Street. Said point being the
southeasterly most corner of the herein described premises, thence

South 66(degrees) 32' 55" west, by the said northerly R.O.W. of Will Street, a
distance of 449.55 feet to a point at land now or formerly of Edgcomb Metals
Company, thence;

North 23(degrees) 30' 00" west, by land of the said Edgcomb Metals Company, a
distance of 723.24 feet, to a point, thence;

North 40(degrees) 56' 57" east, a distance of 25.49 feet to a point on the
southerly right-of-way of Ledge Street, thence;

North 66(degrees) 30' 40" east, by the said southerly R.O.W. of Ledge Street, a
distance of 186.63 feet to a point at land now or formerly of Trigate
Properties, thence;

South 23(degrees) 29' 30" east, by the said land of Trigate Properties, a
distance of 165.00 feet to a point, thence;

North 66(degrees) 30' 40" east, by the said land of Trigate Properties, a
distance of 240.00 feet to a point on the said westerly R.O.W. of Simon Street,
thence;

South 23(degrees) 29' 30" east, by the said westerly R.O.W. of Simon Street, a
distance of 569.50 feet to the point of beginning.

Containing 6.667 acres or 290,429 square feet and being shown as Deed Tract I,
II, III and IV on a plan entitled "Boundary Plan of Map E Lot 149 and Map 87 Lot
252" in Nashua, N.H., prepared for Apex Telecommunications Manufacturing Inc.,
by DuBois and King, Inc. Scale I" = 50', Dated September 27, 1999.

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