Document:

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                                                                 EXHIBIT 10.10

                           REPEATER TECHNOLOGIES, INC.

                              CONVERTIBLE DEBENTURE
                         AND WARRANT PURCHASE AGREEMENT

                                 JULY 11, 2000

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                                TABLE OF CONTENTS

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1.             AGREEMENT TO SELL AND PURCHASE.............................................................................1

               1.1           Authorization................................................................................1

               1.2           Sale and Purchase - Closing..................................................................1

               1.3           Separate Purchases...........................................................................2

               1.4           Payments.....................................................................................2

2.             CLOSING, DELIVERY AND PAYMENT..............................................................................2

               2.1           Closing......................................................................................2

               2.2           Subsequent Sales.............................................................................2

               2.3           Subsequent Closings..........................................................................3

3.             REPRESENTATIONS AND WARRANTIES OF THE COMPANY..............................................................3

               3.1           Organization, Good Standing and Qualification................................................3

               3.2           Capitalization...............................................................................3

               3.3           Authorization; Binding Obligations...........................................................4

               3.4           Financial Statements.........................................................................4

               3.5           Agreements; Action...........................................................................4

               3.6           Changes......................................................................................5

               3.7           Title to Properties and Assets; Liens, etc...................................................6

               3.8           Patents and Trademarks.......................................................................6

               3.9           Compliance with Other Instruments............................................................7

               3.10          Litigation...................................................................................7

               3.11          Tax Returns and Payments.....................................................................7

               3.12          Employees....................................................................................7

               3.13          Registration Rights..........................................................................8

               3.14          Compliance with Laws.........................................................................8

               3.15          Offering Valid...............................................................................8

               3.16          Insurance....................................................................................8

               3.17          Stockholders, Directors and Officers; Indebtedness...........................................8

               3.18          Consents.....................................................................................9

               3.19          Environmental and Safety Laws................................................................9

               3.20          Composition of Board.........................................................................9
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                                       i.

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                                TABLE OF CONTENTS
                                   (CONTINUED)

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               3.21          Minute Books.................................................................................9

               3.22          Qualified Small Business.....................................................................9

               3.23          Full Disclosure..............................................................................9

4.             REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS..........................................................10

               4.1           Requisite Power and Authority...............................................................10

               4.2           Consents....................................................................................10

               4.3           Investment Representations..................................................................10

5.             CONDITIONS TO PURCHASERS' OBLIGATIONS AT THE CLOSING......................................................11

               5.1           Representations and Warranties Correct......................................................11

               5.2           Covenants...................................................................................11

               5.3           Compliance Certificates.....................................................................11

               5.4           Amended and Restated Investors Rights Agreement.............................................11

               5.5           Certificate.................................................................................11

               5.6           Minimum Investment..........................................................................12

               5.7           Proceedings and Documents...................................................................12

               5.8           Qualifications, Legal Investment............................................................12

               5.9           Management Rights...........................................................................12

6.             CONDITIONS TO COMPANY'S OBLIGATIONS AT CLOSING............................................................12

               6.1           Representations Correct.....................................................................12

               6.2           Qualifications, Legal Investment............................................................12

               6.3           Covenants...................................................................................12

               6.4           Certificate.................................................................................12

               6.5           Minimum Investment..........................................................................12

7.             COVENANTS.................................................................................................13

               7.1           Qualified Small Business....................................................................13

               7.2           Series EE Preferred.........................................................................13

               7.3           Vote of Holders of Debentures...............................................................13

               7.4           Waiver of Right of First Refusal............................................................13

8.             MISCELLANEOUS.............................................................................................13

               8.1           Governing Law...............................................................................13
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                                      ii.

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                                TABLE OF CONTENTS
                                   (CONTINUED)

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               8.2           Survival....................................................................................13

               8.3           Successors and Assigns......................................................................14

               8.4           Entire Agreement............................................................................14

               8.5           Separability................................................................................14

               8.6           Amendment and Waiver........................................................................14

               8.7           Delays or Omissions.........................................................................14

               8.8           Waiver of Conflicts.........................................................................14

               8.9           Notices, etc................................................................................15

               8.10          Payment of Fees and Expenses................................................................15

               8.11          Attorneys' Fees.............................................................................15

               8.12          Titles and Subtitles........................................................................15

               8.13          Counterparts................................................................................15

               8.14          Broker's Fees...............................................................................15

               8.15          Parties in Interest.........................................................................15
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                                      iii.

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                           REPEATER TECHNOLOGIES, INC.

                            CONVERTIBLE DEBENTURE AND
                           WARRANT PURCHASE AGREEMENT

        THIS CONVERTIBLE DEBENTURE AND WARRANT PURCHASE AGREEMENT (the
"Agreement") is entered into as of July 11, 2000, by and among REPEATER
TECHNOLOGIES, INC., a Delaware corporation (the "Company"), and each of those
persons and entities, severally and not jointly, whose names are listed in the
column entitled "Purchaser" on the Schedule of Purchasers attached hereto as
EXHIBIT A (which persons and entities are hereinafter collectively referred to
as "Purchasers" and each individually as a "Purchaser").

                                    RECITALS

        WHEREAS, the Company has authorized the sale and issuance, on the terms
and conditions set forth herein, of up to six million dollars ($6,000,000)
principal amount of convertible debentures (the "Debentures") and the issuance
of warrants exercisable for shares of Series EE Preferred Stock (the
"Warrants");

        WHEREAS, Purchasers desire to purchase the Debentures and the Warrants
on the terms and conditions set forth herein; and

        WHEREAS, the Company desires to issue and sell the Debentures and the
Warrants to Purchasers on the terms and conditions set forth herein;

        NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual promises hereinafter set forth, the parties hereto agree as follows:

        1. AGREEMENT TO SELL AND PURCHASE.

           1.1 AUTHORIZATION. On or prior to the Initial Closing (as defined in
Section 2 below), the Company shall have authorized (i) the sale and issuance to
Purchasers of up to six million dollars ($6,000,000) principal amount of
Debentures in the form attached hereto as EXHIBIT B and (ii) the issuance of
warrants to purchase Series EE Preferred Stock in the form attached hereto as
EXHIBIT D (exercisable by their terms for shares of Series EE Preferred Stock).
The Company has, or prior to the Initial Closing will have, adopted and filed
the Amended and Restated Certificate of Incorporation (the "Certificate of
Incorporation") in substantially the form attached hereto as EXHIBIT C with the
Secretary of State of the State of Delaware.

           1.2 SALE AND PURCHASE - CLOSING. Subject to the terms and conditions
hereof, and in reliance upon the representations, warranties and agreements
contained herein, at the Initial Closing (as hereinafter defined) and any
subsequent Closings, if any, the Company will (i) issue and sell to the
Purchasers, and the Purchasers will buy from the Company, Debentures in the
principal amount specified opposite each Purchaser's name in the column entitled
"Debentures," respectively, on the Schedule of Purchasers attached hereto as
EXHIBIT A, for the appropriate consideration specified on the Schedule of
Purchasers, payable by check or wire

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transfer and (ii) issue to each Purchaser a warrant in substantially the form
attached hereto as Exhibit D (each, a "Warrant" and collectively, the
"Warrants") exercisable for the same number of shares set opposite such
Purchaser's name on Exhibit A.

           1.3 SEPARATE PURCHASES. The Company's agreement with each of the
Purchasers is a separate agreement from the other Purchasers, and the sale of
the Debentures to each of the Purchasers is a separate sale from the other
Purchasers. The Company, in its sole and absolute discretion, reserves the right
to approve or disapprove each investor.

           1.4 PAYMENTS. Payment of the Purchase Price shall be made only by
check payable to the Company, wire transfer or cancellation of indebtedness of
the Company. Any Purchaser paying by wire transfer authorizes Cooley Godward LLP
to accept the Purchase Price into its trustee account and to disburse such funds
to the Company upon the Initial Closing.

        2. CLOSING, DELIVERY AND PAYMENT.

           2.1 CLOSING. The closing under this Agreement shall take place at
10:00 a.m. on July 11, 2000 (the "Closing Date"), at the offices of Cooley
Godward LLP, Five Palo Alto Square, 3000 El Camino Real, Palo Alto, California
94306, or at such other time or place as the Company may designate (the "Initial
Closing"). At the Initial Closing, subject to the terms and conditions hereof,
the Company will deliver to each Purchaser (i) the Debenture purchased by such
Purchaser from the Company against payment by or on behalf of such Purchaser of
the purchase price set forth opposite such Purchaser's name on EXHIBIT A (the
"Purchase Price") and (ii) a Warrant exercisable for the number of shares set
forth opposite such Purchaser's name on EXHIBIT A.

           2.2 SUBSEQUENT SALES. To the extent that the aggregate amount of the
Debentures authorized for sale as described in Section 1.1 hereof is not sold
pursuant to this Agreement, at any time on or before the ninetieth (90th) day
following the Initial Closing, subject to the terms and conditions of this
Agreement, the Company may sell up to all of the amount of such unsold
Debentures to such persons as the Company may determine, upon the same terms as
the Debentures purchased and sold hereunder. Any such sale shall be upon the
same terms and conditions as those contained herein, may occur on one or more
occasions and such persons or entities shall become parties to this Agreement
and that certain Seventh Amended and Restated Investors' Rights Agreement dated
of even date herewith, by and among the Company and the Purchasers, the form of
which is attached hereto as EXHIBIT F (the "Amended Rights Agreement"), and
shall have the rights and obligations of a Purchaser hereunder and thereunder.
Such persons or entities may become parties to such agreements (i)(a) by
executing copies of such agreements which, as of the date hereof, provide for
execution by them or (b) by appending additional signature pages to such
agreements containing their signatures and (ii) by appending additional pages to
or revising the Exhibit A of each such agreement appropriately, and the Company
is authorized to effect any of such alternatives on one or more occasions
without the further consent of the Purchasers, notwithstanding any provision
hereof to the contrary.

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           2.3 SUBSEQUENT CLOSINGS. In the event that there is more than one
closing, the term "Closing" shall apply to each such closing unless otherwise
specified and the term "Debentures" shall apply to all of the Debentures sold
and issued at each such closing.

        3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as set forth on
the Schedule of Exceptions attached hereto as EXHIBIT F, the Company hereby
represents and warrants to each Purchaser as follows:

           3.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. The Company is a
corporation duly organized, validly existing, and in good standing under the
laws of the State of Delaware. The Company has full power and authority to own
and operate its properties and assets, and to carry on its business as presently
conducted and as presently proposed to be conducted. The Company is duly
qualified and is authorized to do business and is in good standing as a foreign
corporation in all jurisdictions in which the nature of its activities and of
its properties (both owned and leased) makes such qualification necessary,
except for those jurisdictions in which failure to do so would not have a
material adverse effect on the Company or its business. The Company has no
subsidiaries or affiliated companies and owns no equity securities of any other
corporation, limited partnership or similar entity.

           3.2 CAPITALIZATION. The authorized capital stock of the Company,
immediately prior to the Initial Closing, will consist of 70,000,000 shares of
Common Stock, 3,320,400 shares of which are issued and outstanding, and
20,000,000 shares of Preferred Stock, 1,228,409 shares of which are designated
Series AA Preferred Stock, all of which are issued and outstanding, 5,081,668
shares of which are designated Series BB Preferred Stock, 4,246,316 of which are
issued and outstanding, 4,600,000 shares of which are designated Series CC
Preferred Stock, 4,402,907 of which are issued and outstanding, 3,300,000 shares
of which are designated Series DD Preferred Stock, none of which are issued and
outstanding, and 1,500,000 shares of which are designated Series EE Preferred
Stock, none of which are issued and outstanding. All shares of the Company's
Common Stock, Series AA Preferred Stock, Series BB Preferred Stock and Series CC
Preferred Stock issued and outstanding immediately prior to the date hereof have
been duly authorized and validly issued and are fully paid and nonassessable.
The rights, preferences, privileges and restrictions of the Series AA Preferred
Stock, Series BB Preferred Stock, Series CC Preferred Stock, Series DD Preferred
Stock and Series EE Preferred Stock are as stated in the Certificate of
Incorporation. As of the Initial Closing, each share of Series AA Preferred
Stock will be convertible into Common Stock on approximately a 1.197-for-one
basis, and each share of Series BB Preferred Stock, Series CC Preferred Stock
and Series DD Preferred Stock will be convertible into Common Stock on a
one-for-one basis. The shares of Common Stock issuable upon the conversion of
the issued and outstanding shares of Series AA Preferred Stock, Series BB
Preferred Stock and Series CC Preferred Stock have been duly and validly
reserved for issuance and, when issued in accordance with the Certificate of
Incorporation, will be validly issued, fully paid and nonassessable. Other than
as set forth on the Schedule of Exceptions, and except as may be granted
pursuant to the Amended Rights Agreement, immediately prior to the Initial
Closing, there are no outstanding options, warrants, rights (including
conversion or preemptive rights), proxy or stockholder agreements, or agreements
of any kind for the purchase or acquisition from the Company of any of its
securities.

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           3.3 AUTHORIZATION; BINDING OBLIGATIONS. All corporate action on the
part of the Company, its officers, directors and stockholders necessary for the
authorization, sale and issuance of the Debentures pursuant hereto and, subject
to the receipt of appropriate notice or the occurrence of an event upon which
such conversion is required, the Series EE Preferred Stock issuable upon
conversion of the Debentures (the "Conversion Shares") and the Common Stock
issuable upon conversion thereof (the "Conversion Common") pursuant to the
Certificate of Incorporation and for the performance of the Company's
obligations hereunder and under the Debentures and the Amended Rights Agreement
has been taken or will be taken prior to the Initial Closing. The Agreement and
the Debentures, when executed and delivered, will be valid and binding
obligations of the Company enforceable in accordance with their respective
terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other laws of general application affecting
enforcement of creditors' rights; and (ii) as general principles of equity
restrict the availability of equitable remedies. The sale of the Debentures and
the subsequent conversion of Debentures into Conversion Shares and of Conversion
Shares into Conversion Common are not and will not be subject to any preemptive
rights or rights of first refusal that have not been properly waived or complied
with. The Conversion Shares and Conversion Common have been duly authorized by
the Company and when issued in compliance with the provisions of this Agreement,
the Debentures and the Certificate of Incorporation, the Conversion Shares and
the Conversion Common will be validly issued, fully paid and nonassessable, and
will be free of any liens or encumbrances; provided, however, that the
Debentures, Conversion Shares and Conversion Common may be subject to
restrictions on transfer under state and/or federal securities laws as set forth
herein or as otherwise required by such laws at the time a transfer is proposed.

           3.4 FINANCIAL STATEMENTS. The Company has delivered to each Purchaser
its audited financial statements for the fiscal year ended March 31, 2000 (the
"Financial Statements"), copies of which are attached hereto as EXHIBIT G. The
Financial Statements are complete and correct in all material respects, have
been prepared in accordance with generally accepted accounting principles
applied on a consistent basis throughout the periods indicated, except as
disclosed therein, and present fairly the financial condition and results of
operations of the Company for the periods indicated; provided however, that the
unaudited financial statements are subject to normal recurring year-end audit
adjustments and do not contain all footnotes required under generally accepted
accounting principles.

           3.5 AGREEMENTS; ACTION.

               (a) Except for agreements explicitly contemplated hereby and
agreements between the Company and its employees with respect to the sale of the
Company's Common Stock, there are no agreements, understandings or proposed
transactions between the Company and any of its officers, directors or
affiliates, or any affiliate or relative thereof.

               (b) There are no agreements, understandings, instruments,
contracts, proposed transactions, judgments, orders, writs or decrees to which
the Company is a party or by which it is bound which may involve (i) obligations
(contingent or otherwise) of, or payments to, the Company in excess of $100,000
(other than obligations of, or payments to, the Company arising from purchase or
sale agreements entered into in the ordinary course of business), or (ii) the
license of any patent, copyright, trade secret or other proprietary right to or
from the

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Company (other than licenses arising from the purchase of "off the shelf" or
other standard products), or (iii) provisions restricting or affecting the
development, manufacture or distribution of the Company's products or services,
or (iv) indemnification by the Company with respect to infringements of
proprietary rights (other than indemnification obligations arising from purchase
or sale agreements entered into in the ordinary course of business).

               (c) Since March 31, 2000, the Company has not (i) declared or
paid any dividends, or authorized or made any distribution upon or with respect
to any class or series of its capital stock, (ii) incurred any indebtedness for
money borrowed or any other liabilities (other than with respect to indebtedness
and other obligations incurred in the ordinary course of business or as
disclosed in the Financial Statements) individually in excess of $100,000 or, in
the case of indebtedness and/or liabilities individually less than $100,000, in
excess of $200,000 in the aggregate, (iii) made any loans or advances to any
person, other than ordinary advances for travel expenses, (iv) repurchased,
redeemed or otherwise acquired any shares of its capital stock or agreed to do
so (other than repurchases of Common Stock from employees or consultants of the
Company at the initial purchase price thereof upon termination of their such
person's services to the Company) or (v) sold, exchanged or otherwise disposed
of any of its assets or rights, other than the disposal of unnecessary equipment
or the sale of its inventory in the ordinary course of business.

               (d) For the purposes of subsections (b) and (c) above, all
indebtedness, liabilities, agreements, understandings, instruments, contracts
and proposed transactions involving the same person or entity (including persons
or entities the Company has reason to believe are affiliated therewith) shall be
aggregated for the purpose of meeting the individual minimum dollar amounts of
such subsections.

           3.6 CHANGES. Since March 31, 2000, there has not been:

               (a) Any change in the assets, liabilities, financial condition,
operations or prospects of the Company, other than changes in the ordinary
course of business, none of which individually or in the aggregate has had or is
expected to have a material adverse effect on such assets, liabilities,
financial condition, operations or prospects of the Company;

               (b) Any change, except in the ordinary course of business, in the
contingent obligations of the Company by way of guaranty, endorsement,
indemnity, warranty, or otherwise, none of which individually or in the
aggregate has had or is expected to have a material adverse effect on the
assets, liabilities, financial condition, operations or prospects of the
Company;

               (c) Any damage, destruction, or loss, whether or not covered by
insurance, materially and adversely affecting the properties or business of the
Company;

               (d) Any waiver by the Company of a valuable right or of a
material debt owed to it;

               (e) Any direct or indirect loans made by the Company to any
stockholder, employee, officer, or director of the Company, other than advances
made in the ordinary course of business;

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               (f) Any declaration or payment of any dividend or other
distribution of the assets of the Company;

               (g) Any labor organization activity;

               (h) Any debt, obligation, or liability incurred, assumed or
guaranteed by the Company, except current liabilities incurred in the ordinary
course of business;

               (i) Any change in any material agreement to which the Company is
a party or by which it is bound which materially and adversely affects or, so
far as the Company may now foresee, in the future could materially and adversely
affect the business, assets, liabilities, financial condition, operations or
prospects of the Company, including compensation agreements with the Company's
employees;

               (j) Any other event or condition of any character that, either
individually or cumulatively, has materially and adversely affected, or, so far
as the Company may now foresee, in the future could materially and adversely
affect the business, assets, liabilities, financial condition, operations or
prospects of the Company; or

               (k) Any agreement on the part of the Company to do any of the
foregoing.

           3.7 TITLE TO PROPERTIES AND ASSETS; LIENS, ETC. The Company has good
and marketable title to its properties and assets, including the properties and
assets reflected in the balance sheet as at March 31, 2000 (included in the
Financial Statements), and good title to its leasehold estates, in each case
subject to no mortgage, pledge, lien, lease, encumbrance, or charge, other than
(i) those resulting from taxes which have not yet become delinquent, or (ii)
minor liens and encumbrances which do not materially detract from the value of
the property subject thereto or materially impair the operations of the Company.

           3.8 PATENTS AND TRADEMARKS. To the best of the Company's knowledge,
the Company, as of the Closing Date, owns or has sufficient rights to those
trade names, copyrights, trade secrets, information, patents, trademarks,
service marks, licenses, rights and processes necessary for its business as now
conducted and as proposed to be conducted without any conflict with or
infringement of the rights of others. There are no outstanding options,
licenses, or agreements of any kind relating to the foregoing, nor is the
Company bound by or a party to any options, licenses or agreements of any kind
with respect to the patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, proprietary rights and processes of any other person or
entity other than such licenses or agreements arising from the purchase of "off
the shelf" or standard products. To the best knowledge of the Company, the
Company has not violated or infringed or, by conducting its business as
proposed, will violate or infringe any of the patents, trademarks, service
marks, trade names, copyrights or trade secrets or other proprietary rights of
any other person or entity. To the best knowledge of the Company none of the
Company's employees is obligated under any contract (including licenses,
covenants or commitments of any nature) or other agreement, or subject to any
judgment, decree or order of any court or administrative agency, that would
interfere with the use of his best efforts to promote the interests of the
Company or that would conflict with the Company's business as

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proposed to be conducted. To the best knowledge of the Company, neither the
execution nor delivery of this Agreement, nor the carrying on of the Company's
business by the employees of the Company, nor the conduct of the Company's
business as proposed, will conflict with or result in a breach of the terms,
conditions or provisions of, or constitute a default under, any contract,
covenant or instrument under which any of such employees is now obligated. The
Company does not believe that, as the Company's business is currently conducted
or proposed to be conducted, it is or will be necessary to utilize any
inventions of any of its employees (or people it currently intends to hire) made
prior to their employment by the Company.

           3.9 COMPLIANCE WITH OTHER INSTRUMENTS. The Company is not in
violation, breach or default of any term of its Certificate of Incorporation or
Bylaws, any mortgage, indenture, contract, agreement, instrument, judgment,
decree, order or, to the best of its knowledge, any statute, rule, or regulation
applicable to the Company or by which the Company or its assets is bound which
would materially and adversely affect the business, assets, liabilities,
financial condition, operations or prospects of the Company, and, to the best of
the Company's knowledge, no event or condition has occurred or exists which,
with the lapse of time or the giving of notice or both would constitute such a
violation, breach or default. The execution, delivery, and performance of and
compliance with this Agreement and the issuance and sale of the Debentures
pursuant hereto and of the Conversion Shares and Conversion Common pursuant to
the Certificate of Incorporation, will not result in any such violation, breach
or default or be in conflict with or constitute a default under any such term,
or result in the creation of any mortgage, pledge, lien, encumbrance, or charge
upon any of the properties or assets of the Company.

           3.10 LITIGATION. There is no action, suit, proceeding or
investigation pending or currently threatened against the Company which might
result, either individually or in the aggregate, in any material adverse changes
in the assets, liabilities, financial condition, operations, affairs or
prospects of the Company, financially or otherwise, or any change in the current
equity ownership of the Company, nor to the best knowledge of the Company, is
there any basis for the foregoing. The foregoing includes, without limitation,
actions pending or threatened (or any basis therefor known to the Company)
involving the prior employment of any of the Company's employees, their use in
connection with the Company's business of any information or techniques
allegedly proprietary to any of their former employers, or their obligations
under any agreements with prior employers. The Company is not a party or subject
to the provisions of any order, writ, injunction, judgment or decree of any
court or government agency or instrumentality. There is no action, suit,
proceeding or investigation by the Company currently pending or which the
Company intends to initiate.

           3.11 TAX RETURNS AND PAYMENTS. The Company has filed or has received
extensions for all tax returns, reports, schedules and other documents which are
required to be filed by it with the Internal Revenue Service or any other
governmental taxing authority. All such tax returns are accurate and complete in
all material respects and all taxes shown to be due and payable on such returns,
any assessments imposed, and all other taxes and estimated payments due and
payable by the Company on or before the Initial Closing have been paid.

           3.12 EMPLOYEES. The Company has no collective bargaining agreements
with any of its employees. There is no labor union organizing activity pending
or threatened with

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respect to the Company. No employee has any agreement or contract, written or
oral, regarding his employment with the Company. To the best of the Company's
knowledge, no employee of the Company, nor anyone with whom the Company has
contracted, is in violation of any term of any employment, non-compete or
non-disclosure contract, inventions agreement, patent disclosure agreement or
any other agreement relating to the right of any such individual to be employed
by, or to provide services to or contract with, the Company; and, to the best of
the Company's knowledge after due investigation, the continued employment by the
Company of its present employees, and the performance of the Company's contracts
with its independent contractors, will not result in any such violation. The
Company has not received any notice alleging that any such violation has
occurred. Each employee of the Company has executed a Proprietary Information
and Inventions Agreement in the form delivered to the Purchasers.

           3.13 REGISTRATION RIGHTS. Except as required pursuant to the Amended
Rights Agreement, the Company is presently not under any obligation, and has not
granted any rights, to register any of the Company's presently outstanding
securities or any of its securities that may hereafter be issued.

           3.14 COMPLIANCE WITH LAWS. The Company is not in violation of any
applicable statute, rule, regulation, order or restriction of any domestic or
foreign government or any instrumentality or agency thereof which violation
would materially and adversely affect the business, assets, liabilities,
financial condition, operations or prospects of the Company. No orders,
permissions, consents, approvals or authorizations are required to be obtained
and no registrations, declarations or other documents are required to be filed
in connection with the execution and delivery of this Agreement, the Debentures
and the Amended Rights Agreement and the issuance of the Debentures or the
Conversion Shares or the Conversion Common, except such as has been duly and
validly obtained or filed, or with respect to any filings that must be made
after the Initial Closing, as will be filed in a timely manner.

           3.15 OFFERING VALID. Assuming the accuracy of the representations and
warranties of the Purchasers contained in Section 4.3 hereof, the offer, sale
and issuance of the Debentures, the Conversion Shares and Conversion Common will
be exempt from the registration requirements of the Securities Act of 1933, as
amended (the "Securities Act") and will have been registered or qualified (or
are exempt from registration and qualification) under the registration, permit
or qualification requirements of all applicable state securities laws. Neither
the Company nor any agent on its behalf has solicited or will solicit any offers
to sell or has offered to sell or will offer to sell all or any part of the
Debentures to any person or persons so as to bring the offer or sale of such
Debentures by the Company to the Purchasers within the registration provisions
of the Securities Act or any state securities laws.

           3.16 INSURANCE. The Company has in full force and effect fire,
casualty and products liability insurance policies, with extended coverage,
sufficient in amount to allow it to replace any of its owned or leased
properties which might be damaged or destroyed.

           3.17 STOCKHOLDERS, DIRECTORS AND OFFICERS; INDEBTEDNESS. The Company
has no indebtedness to any of its officers, directors or stockholders or to any
member of the immediate family thereof and none of such person is indebted to
the Company, other than travel, relocation, and other expenses which are
advanced and reimbursed in the ordinary course of

                                       8
<PAGE>   13

business and are not material. To the best of the Company's knowledge, none of
the officers or directors or significant employees or consultants of the Company
has, individually or collectively, directly or indirectly, a material interest
in any entity which is a direct competitor, customer or supplier of (or has any
existing contractual relationship with) the Company, other than shares of
publicly traded corporations held by such persons.

           3.18 CONSENTS. No consent, approval, qualification, order or
authorization of, or filing with, any governmental authority or other person is
required in connection with the Company's valid execution, delivery or
performance of this Agreement or the offer, sale or issuance of the Debentures
by the Company, the conversion of the Debentures, the issuance of the Conversion
Shares upon conversion of the Debentures, the issuance of Conversion Common upon
conversion of the Conversion Shares or the consummation of any other transaction
contemplated on the part of the Company hereby, except (a) the filing of the
Amended and Restated Certificate of Incorporation with the Secretary of State of
the State of Delaware prior to the Initial Closing, (b) the filing of a notice
of exemption pursuant to Section 25102(f) of the California Corporations Code
with the California Commission of Corporations, which the Company covenants to
complete within fifteen (15) days after the Initial Closing, or (c) other
post-closing state securities law filings which the Company covenants to
complete on a timely basis.

           3.19 ENVIRONMENTAL AND SAFETY LAWS. The Company is not, to the best
of its knowledge, in violation of any applicable statute, law, or regulation
relating to the environment or occupational health and safety, and no material
expenditures are or will be required in order to comply with any such existing
statute, law or regulation.

           3.20 COMPOSITION OF BOARD. As of the date hereof, the Bylaws of the
Company provide that the authorized number of the Board of Directors is a
minimum of five (5) and a maximum of nine (9) directors.

           3.21 MINUTE BOOKS. The minute books of the Company contain a complete
summary of all meetings and actions of the Company's Board of Directors and
stockholders since the time of incorporation and accurately reflect all
transactions referred to in such minutes in all material respects.

           3.22 QUALIFIED SMALL BUSINESS. The Company qualifies as a Qualified
Small Business as defined in Section 1202(d) of the Internal Revenue Code of
1986, as amended (the "Code").

           3.23 FULL DISCLOSURE. Neither this Agreement, the Exhibits hereto nor
any of the documents delivered by the Company or authorized to be delivered on
behalf of the Company by its representatives to Purchasers or their attorneys or
agents in connection herewith or therewith or with the transactions contemplated
hereby or thereby, contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained herein
or therein not misleading. To the best of the Company's knowledge, there are no
facts which (individually or in the aggregate) materially adversely affect the
business, assets, liabilities, financial condition, prospects or operations of
the Company that have not been set forth in the Agreement.

                                       9
<PAGE>   14

        4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each Purchaser
hereby represents and warrants severally and not jointly to the Company as
follows (such representations and warranties do not lessen or obviate the
representations and warranties of the Company set forth in this Agreement):

           4.1 REQUISITE POWER AND AUTHORITY. Purchaser has all necessary power
and authority under all applicable provisions of law to execute and deliver this
Agreement and to carry out its provisions. All action on Purchaser's part
required for the lawful execution and delivery of this Agreement has been or
will be effectively taken prior to the Initial Closing. Upon its execution and
delivery, this Agreement will be a valid and binding obligation of Purchaser,
enforceable in accordance with its terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general
application affecting enforcement of creditors' rights; and (ii) as general
principles of equity restrict the availability of equitable remedies.

           4.2 CONSENTS. All consents, approvals, orders, authorizations,
registrations, qualifications, designations, declarations or filings with any
governmental authority on the part of Purchaser required in connection with the
consummation of the transactions contemplated in the Agreement have been or
shall have been obtained prior to and be effective as of the Initial Closing.

           4.3 INVESTMENT REPRESENTATIONS. Purchaser understands that neither
the Debentures, the Conversion Shares nor the Warrants have been registered
under the Securities Act. Purchaser also understands that the Debentures and the
Warrants are being offered and sold pursuant to an exemption from registration
contained in the Securities Act based in part upon Purchaser's representations
contained in the Agreement. Purchaser hereby represents and warrants to the
Company as follows:

               (a) PURCHASER BEARS ECONOMIC RISK. Purchaser has substantial
experience in evaluating and investing in private placement transactions of
securities in companies similar to the Company so that it is capable of
evaluating the merits and risks of its investment in the Company and has the
capacity to protect its own interests. Purchaser must bear the economic risk of
this investment indefinitely unless the Debentures (or the Conversion Shares) or
the Warrants are registered pursuant to the Securities Act, or an exemption from
registration is available. Purchaser understands that the Company has no present
intention of registering the Debentures, the Conversion Shares, the Warrants or
any shares of its Common Stock. Purchaser also understands that there is no
assurance that any exemption from registration under the Securities Act will be
available and that, even if available, such exemption may not allow Purchaser to
transfer all or any portion of the Debentures, the Conversion Shares or the
Warrants under the circumstances, in the amounts or at the times Purchaser might
propose.

               (b) ACQUISITION FOR OWN ACCOUNT. Purchaser is acquiring the
Debentures, the Conversion Shares and the Warrants for Purchaser's own account
for investment only, and not with a view towards their distribution.

               (c) PURCHASER CAN PROTECT ITS INTEREST. Purchaser represents that
by reason of its, or of its management's, business or financial experience,
Purchaser has the capacity

                                       10
<PAGE>   15

to protect its own interests in connection with the transactions contemplated in
this Agreement. Purchaser is not a corporation, trust or partnership
specifically formed for the purpose of consummating these transactions.

               (d) ACCREDITED INVESTOR. Purchaser represents that it is an
accredited investor within the meaning of Regulation D under the Securities Act.

               (e) COMPANY INFORMATION. Purchaser has received and read the
Financial Statements, has had an opportunity to discuss the Company's business,
management and financial affairs with directors, officers and management of the
Company and has had the opportunity to review the Company's operations and
facilities. Purchaser has also had the opportunity to ask questions of and
receive answers from, the Company and its management regarding the terms and
conditions of this investment.

        5. CONDITIONS TO PURCHASERS' OBLIGATIONS AT THE CLOSING. The Purchasers'
obligations to purchase the Debentures at the Initial Closing are subject to the
fulfillment on or prior to the Initial Closing of all of the conditions set
forth below in this Section 5 to the extent not waived by each Purchaser.

           5.1 REPRESENTATIONS AND WARRANTIES CORRECT. The representations and
warranties made in Section 3 hereof shall be true and correct when made, and
shall be true and correct on the Closing Date with the same force and effect as
if they had been made as of the Closing Date.

           5.2 COVENANTS. All covenants, agreements and conditions contained in
this Agreement to be performed by the Company on or prior to the Initial Closing
shall have been performed or complied with in all respects.

           5.3 COMPLIANCE CERTIFICATES. The Company shall have delivered to the
Purchasers certificates of the Company, (i) one of which has been executed by
the President and Chief Executive Officer of the Company, dated the date of the
Initial Closing, which certifies to the fulfillment of the conditions specified
in Sections 5.1 and 5.2 of this Agreement and (ii) one of which has been
executed by the Secretary of the Company, dated the date of the Initial Closing,
which certifies as to the fact that true and complete copies of the Company's
Certificate of Incorporation, Bylaws and Board of Directors and stockholders
resolutions regarding the sale of the Debentures are attached thereto.

           5.4 AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT. The Company and
the Purchasers and the holders of 50% of the outstanding Registrable Securities
as defined in the Sixth Amended and Restated Investors' Rights Agreement dated
as of November 25, 1998, as amended by Amendment No. 1 to the Sixth Amended and
Restated Investors' Rights Agreement dated July 8, 1999, by and among the
Company and certain of its investors, shall have entered into the Amended Rights
Agreement.

           5.5 CERTIFICATE. The Amendment to the Certificate of Incorporation,
in substantially the form attached hereto as EXHIBIT C, shall have been filed
with the Secretary of State of the State of Delaware.

                                       11
<PAGE>   16

           5.6 MINIMUM INVESTMENT. The Company shall have received a minimum
investment of $3,000,000 at the Initial Closing.

           5.7 PROCEEDINGS AND DOCUMENTS. All corporate and other proceedings in
connection with the transactions contemplated at the Initial Closing hereby and
all documents and instruments incident to such transactions shall be reasonably
satisfactory in substance and form to the Purchasers, and the Purchasers shall
have received all such counterpart originals or certified or other copies of
such documents as they may reasonably request.

           5.8 QUALIFICATIONS, LEGAL INVESTMENT. All authorizations, approvals,
or permits, if any, of any governmental authority or regulatory body of the
United States or of any state that are required in connection with the lawful
sale and issuance of the Debentures pursuant to this Agreement shall have been
duly obtained and shall be effective on and as of the Initial Closing. At the
time of the Initial Closing, the sale and issuance of the Debentures and the
proposed issuance of the Conversion Shares shall be legally permitted by all
laws and regulations to which the Purchasers and the Company are subject.

           5.9 MANAGEMENT RIGHTS. The Company shall execute an Amended and
Restated Management Rights Agreement on behalf of Charter Growth Capital, L.P.,
Charter Growth Capital Co-Investment Fund, L.P. and CGC Investors, L.P. in the
form attached hereto as EXHIBIT H.

        6. CONDITIONS TO COMPANY'S OBLIGATIONS AT CLOSING. The Company's
obligation to sell the Debentures and Warrants at the Initial Closing is subject
to the fulfillment of the following conditions to the extent not waived by the
Company:

           6.1 REPRESENTATIONS CORRECT. The representations made by the
Purchasers in Section 4 hereof shall be true and correct when made, and shall be
true and correct on the Closing Date with the same force and effect as if they
had been made as of the Closing Date.

           6.2 QUALIFICATIONS, LEGAL INVESTMENT. All authorizations, approvals,
or permits, if any, of any governmental authority or regulatory body of the
United States or of any state that are required in connection with the lawful
sale and issuance of the Debentures pursuant to this Agreement shall have been
duly obtained and shall be effective on and as of the Initial Closing. At the
time of the Initial Closing, the sale and issuance of the Debentures and the
proposed issuance of the Conversion Shares shall be legally permitted by all
laws and regulations to which the Purchasers and the Company are subject.

           6.3 COVENANTS. All covenants, agreements and conditions contained in
this Agreement to be performed by the Purchasers on or prior to the Initial
Closing shall have been performed or complied with in all respects.

           6.4 CERTIFICATE. The Certificate of Incorporation, in substantially
the form attached hereto as EXHIBIT C, shall have been filed with the Secretary
of State of the State of Delaware.

           6.5 MINIMUM INVESTMENT. The Company shall have received a minimum
aggregate investment of $3,000,000 at the Initial Closing.

                                       12
<PAGE>   17

        7. COVENANTS.

           7.1 QUALIFIED SMALL BUSINESS. After the Closing Date, the Company
shall (a) not make any purchase of its stock during the one-year period
following the Closing Date having an aggregate value, when added to the
aggregate value of stock purchased by the Company during the one-year period
preceding the Closing Date (in each case determined as of the purchase date),
exceeding 5% of the aggregate value of all of the Company's stock (such value
determined as of the date one year prior to the Closing Date) without having
given the holders of the Series CC, Series DD and Series EE Preferred prior
notice of such purchase and the opportunity to discuss with the Company means of
achieving such purchase without adversely affecting the qualification of the
Series CC, Series DD and Series EE Preferred as a "qualified small business
stock" set forth in Section 1202(c) of the Code and without such repurchase
having been approved by the Board of Directors, (b) use commercially reasonable
efforts to use at least 80% (by value) of its assets in the active conduct of
one or more qualified trades or businesses for substantially all of the
five-year period following the Closing Date, and (c) not cease to be a C
corporation which is an eligible corporation, as defined by Code Section
1202(e)(4). To the extent not otherwise prohibited by applicable law or
regulatory authorities, the Company will include in all future stock option and
stock purchase agreements providing for the sale of unvested stock (subject to a
right of repurchase) with employees and consultants a provision that permits the
Company to delay any repurchase of shares under vesting provisions by a period
of time sufficient to facilitate compliance with the covenant contained in
clause (a) hereof or to assign its right to repurchase shares to a third party.
Notwithstanding anything to the contrary in this Section 7.1, the Company shall
not be obligated to take any action or refrain from taking any action which the
Company has determined, in good faith, is not in its best business interests.

           7.2 SERIES EE PREFERRED. After the Closing Date, for the purpose of
determining the number of outstanding shares of Series EE Preferred pursuant to
Section 6 of the Certificate of Incorporation, the Series EE Preferred issuable
upon conversion of the Debentures shall be deemed to be outstanding as of the
Closing Date.

           7.3 VOTE OF HOLDERS OF DEBENTURES. After the Closing Date, if the
Company proposes to amend the Certificate of Incorporation, and such amendment
would entitle the Series EE Preferred to a vote if there were shares of Series
EE Preferred outstanding, then the Company shall solicit the consent of the
holders of the Debentures as though such Debentures had been converted to Series
EE Preferred.

        8. MISCELLANEOUS.

           8.1 GOVERNING LAW. This Agreement shall be governed in all respects
by the laws of the State of California.

           8.2 SURVIVAL. The representations, warranties, covenants, and
agreements made herein shall survive any investigation made by any Purchaser and
the Initial Closing of the transactions contemplated hereby. All statements as
to factual matters contained in any certificate or other instrument delivered by
or on behalf of the Company pursuant hereto in

                                       13
<PAGE>   18

connection with the transactions contemplated hereby shall be deemed to be
representations and warranties by the Company hereunder solely as of the date of
such certificate or instrument.

           8.3 SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors, and administrators of the
parties hereto and shall inure to the benefit of and be enforceable by each
person who shall be a holder of the Debentures from time to time.

           8.4 ENTIRE AGREEMENT. This Agreement, the Exhibits and Schedules
hereto, constitute the full and entire understanding and agreement between the
parties with regard to the subject matter hereof and no party shall be liable or
bound to any other in any manner by any representations, warranties, covenants,
and agreements except as specifically set forth herein.

           8.5 SEPARABILITY. In case any provision of the Agreement shall be
invalid, illegal, or unenforceable, the validity, legality, and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

           8.6 AMENDMENT AND WAIVER.

               (a) This Agreement may be amended or modified only upon the
written consent of the Company and holders of not less than 66% of the Common
Stock issued or issuable hereunder (treated as if the Debentures were converted
into Conversion Shares which were subsequently converted into Common Stock that
has not been sold to the public and excluding the Warrants).

               (b) The obligations of the Company and the rights of the holders
of the Debentures and the Conversion Shares under the Agreement may be waived
only with the written consent of the holders of not less than 66% of the Common
Stock issued or issuable hereunder (treated as if the Debentures were converted
into Conversion Shares which were subsequently converted into Common Stock that
has not been sold to the public and excluding the Warrants).

           8.7 DELAYS OR OMISSIONS. It is agreed that no delay or omission to
exercise any right, power, or remedy accruing to any Purchaser, upon any breach,
default or noncompliance of the Company under this Agreement, the Debentures,
the Amended Rights Agreement or the Certificate of Incorporation, shall impair
any such right, power, or remedy, nor shall it be construed to be a waiver of
any such breach, default or noncompliance, or any acquiescence therein, or of or
in any similar breach, default or noncompliance thereafter occurring. It is
further agreed that any waiver, permit, consent, or approval of any kind or
character on any Purchaser's part of any breach, default or noncompliance under
this Agreement, the Debentures or under the Certificate of Incorporation or any
waiver on such Purchaser's part of any provisions or conditions of the Agreement
must be in writing and shall be effective only to the extent specifically set
forth in such writing. All remedies, either under this Agreement, the
Debentures, the Certificate of Incorporation, by law, or otherwise afforded to
Purchasers, shall be cumulative and not alternative.

           8.8 WAIVER OF CONFLICTS. Each party to this Agreement acknowledges
that Cooley Godward LLP ("Cooley Godward"), outside general counsel to the
Company, has in the

                                       14
<PAGE>   19

past performed and is or may now or in the future represent one or more of the
Purchasers or their affiliates in matters unrelated to the transactions
contemplated by this Agreement (the "Financing"), including representation of
such Purchasers or their affiliates in matters of a similar nature to the
Financing. The applicable rules of professional conduct require that Cooley
Godward inform the parties hereunder of this representation and obtain their
consent. Cooley has served as outside general counsel to the Company and has
negotiated the terms of the Financing solely on behalf of the Company. It is the
belief of Cooley Godward that these terms and conditions represent an arm's
length transaction between the Company and the Purchasers. The Company and each
Purchaser hereby (a) acknowledge that they have had an opportunity to ask for
and have obtained information relevant to such representation, including
disclosure of the reasonably foreseeable adverse consequences of such
representation; (b) acknowledge that with respect to the Financing, Cooley
Godward has represented solely the Company, and not any Purchaser or any
stockholder, director or employee of the Company or any Purchaser; and (c) gives
its informed consent to Cooley Godward's representation of the Company in the
Financing.

           8.9 NOTICES, ETC. All notices and other communications required or
permitted hereunder shall be in writing and shall be sent by registered or
certified mail, return receipt requested, postage prepaid, by means of a
nationally recognized overnight courier service, or by telex or facsimile,
addressed or sent: (a) if to a Purchaser, at such Purchaser's address or
facsimile number as set forth on the Company's records, or at such other address
or facsimile number as such Purchaser shall have furnished to the Company in
writing or (b) if to the Company, at its address or facsimile number as set
forth at the end of this Agreement, or at such other address or facsimile number
as the Company shall have furnished to the Purchasers in writing.

           8.10 PAYMENT OF FEES AND EXPENSES. The Company and each Purchaser
shall bear its own expenses incurred on its behalf with respect to this
Agreement and the transactions contemplated thereby.

           8.11 ATTORNEYS' FEES. If legal action is brought to enforce or
interpret this Agreement, the prevailing party shall be entitled to recover its
reasonable attorneys' fees and legal costs in connection therewith.

           8.12 TITLES AND SUBTITLES. The titles of the paragraphs and
subparagraphs of the Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

           8.13 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

           8.14 BROKER'S FEES. Each party hereto represents and warrants that no
agent, broker, investment banker, person or firm acting on behalf of or under
the authority of such party hereto is or will be entitled to any broker's or
finder's fee or any other commission directly or indirectly in connection with
the transactions contemplated herein. Each party hereto further

                                       15
<PAGE>   20

agrees to indemnify each other party for any claims, losses or expenses incurred
by such other party as a result of the representation in this Section 8.13 being
untrue.

           8.15 PARTIES IN INTEREST. None of the provisions of this Agreement is
intended to provide right or remedies to any person or entity other than the
parties hereto and their respective successors and assigns (if any) and except
for rights of Cooley Godward LLP pursuant to Section 1.4.

               [the remainder of this page is intentionally blank]

                                       16
<PAGE>   21

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By: /s/ KEN KENITZER
   ----------------------------------------
   Ken Kenitzer
   President

PURCHASER:

CHARTER GROWTH CAPITAL, L.P.

By: /s/ STEVEN P. BIRD
   ----------------------------------------
   Name:  Steven P. Bird
   Title: General Partner

                                       17
<PAGE>   22

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:
   ----------------------------------------
        Ken Kenitzer
        President

PURCHASER:

CHARTER GROWTH CAPITAL CO-INVESTMENT FUND, L.P.

By: /s/ STEVEN P. BIRD
   ----------------------------------------
   Name:  Steven P. Bird
   Title: General Partner

                                       18
<PAGE>   23

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:
   ----------------------------------------
   Ken Kenitzer
   President

PURCHASER:

CITIVENTURE 96 PARTNERSHIP FUND, L.P.

By: Chancellor LGT Citiventure 96 Partner, its General Partner
By: INVESCO Private Capital, Inc.

By: /s/ ALESSANDRO PIOL
   ----------------------------------------

Name:
     --------------------------------------

Title:
      -------------------------------------

                                       19
<PAGE>   24

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:
   ----------------------------------------
   Ken Kenitzer
   President

PURCHASER:

NAZEM & COMPANY IV, L.P.

By: /s/ PHILIP BARAK
   ----------------------------------------

Name: Philip Barak
     --------------------------------------

Title: General Partner
      -------------------------------------

                                       20
<PAGE>   25

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:
   ----------------------------------------
   Ken Kenitzer
   President

PURCHASER:

OAK INVESTMENT PARTNERS VI, L.P.

By: /s/ BANDEL CARANO
   ----------------------------------------
   Name:  Bandel Carano
   Title: Managing Member

                                       21
<PAGE>   26

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:
   ----------------------------------------
   Ken Kenitzer
   President

PURCHASER:

OAK VI AFFILIATES FUND, L.P.

By: /s/ BANDEL CARANO
   ----------------------------------------
   Name:  Bandel Carano
   Title: Managing Member

                                       22
<PAGE>   27

                                INDEX OF EXHIBITS

<TABLE>
<S>                                                                   <C>
Schedule of Purchasers                                                 Exhibit A

Form of Convertible Debenture                                          Exhibit B

Amended and Restated Certificate of Incorporation                      Exhibit C

Form of Warrant                                                        Exhibit D

Seventh Amended and Restated Investors' Right
  Agreement                                                            Exhibit E

Schedule of Exceptions                                                 Exhibit F

Financial Statements                                                   Exhibit G

Form of Management Rights Agreement                                    Exhibit H
</TABLE>

<PAGE>   28

                                    EXHIBIT A

                             SCHEDULE OF PURCHASERS

<TABLE>
<CAPTION>
             PURCHASER                                                 DEBENTURES
             ---------                                                 ----------
<S>                                                                   <C>
Charter Growth Capital, L.P.                                          $  233,750

Charter Growth Capital Co-Investment Fund, L.P.                          866,250

Citiventure 96 Partnership Fund, L.P.                                  1,500,000

Nazem & Company IV, L.P.                                                 500,000

Oak Investment Partners VI, L.P.                                       1,954,400

Oak VI Affiliates Fund, L.P.                                              45,600
                                                                      ----------
TOTAL                                                                 $5,100,000
                                                                      ==========
</TABLE>

<PAGE>   29

                                    EXHIBIT B

                          FORM OF CONVERTIBLE DEBENTURE

REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). NO SALE OR
DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER THE ACT OR
AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR UPON RECEIPT OF AN
OPINION OF COUNSEL FOR HOLDER, SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM
THE SECURITIES AND EXCHANGE COMMISSION.

IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY
INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, WITHOUT THE PRIOR
WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA,
EXCEPT AS PERMITTED IN THE COMMISSIONER'S RULES.

                             SUBORDINATED UNSECURED
                              CONVERTIBLE DEBENTURE

                                                         CD2-<<DEBENTURENUMBER>>

$<<AMOUNT>>.00                                                     June __, 2000
                                                           Sunnyvale, California

        FOR VALUE RECEIVED, REPEATER TECHNOLOGIES, INC., a Delaware corporation
(the "Company"), unconditionally and without set-off or counterclaim promises to
pay to <<NAME>> (the "Holder"), or its assigns, the principal sum of
<<AmountSpelledOut>> ($<<Amount>>.00) together with interest from the date of
this Subordinated Unsecured Convertible Debenture (this "Debenture") on the
unpaid principal balance at a rate equal to eight percent (8.0%) per annum,
computed on the basis of the actual number of days elapsed and a year of 360
days. All unpaid principal, together with any then unpaid and accrued interest
and other amounts payable hereunder, shall be due and payable on the "Maturity
Date" which date shall be the earlier of (i) November 25, 2003, or (ii) when
such amounts are declared due and payable by the Holder or made automatically
due and payable upon or after the occurrence of an Event of Default (as defined
below). The Company agrees it shall use the proceeds of the purchase of this
Debenture for working capital and business expansion purposes only.

1. DEFINITIONS. As used in this Debenture, the following capitalized terms have
the following meanings:

        1.1 "CERTIFICATE" shall mean the Amended and Restated Certificate of
Incorporation of the Company as in effect as of the Initial Closing.

<PAGE>   30

        1.2 "CHANGE OF CONTROL" means the occurrence after the date hereof of
(a) any Person, or two or more Persons acting in concert, acquiring beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended), directly or
indirectly, or entering into a contract or arrangement which, upon consummation,
will result in their acquisition or control, of or over Equity Securities of the
Company representing greater than fifty one percent (51%) of the combined voting
power of all Equity Securities of the Company entitled to vote in the election
of directors; (b) during any twenty-four month (24) period, individuals who were
directors of the Company on the first day of such period shall, together with
such directors as are approved by the directors who were directors at the
beginning of such period, cease to constitute a majority of the board of
directors of the Company; (c) the sale of all or substantially all of the
assets; or (d) the acquisition of the Company by another entity as set forth in
Article IV, Part C, Section 3(c) of the Certificate.

        1.3 "COMPANY" includes the corporation initially executing this
Debenture and any Person which shall succeed to or assume the obligations of the
Company under this Debenture.

        1.4 "DEBENTURE PURCHASE AGREEMENT" shall mean the Convertible Debenture
and Warrant Purchase Agreement dated of even date herewith between the Company
and the Purchasers identified on Exhibit A thereto.

        1.5 "EQUITY SECURITIES" of any Person shall mean (a) all common stock,
preferred stock, participations, shares, or other equity interests in and of
such Person (regardless of how designated and whether or not voting or
non-voting) and (b) all warrants, options and other rights to acquire any of the
foregoing.

        1.6 "EVENT OF DEFAULT" has the meaning given in Section 7 hereof.

        1.7 "FINANCIAL STATEMENTS" shall mean, with respect to any accounting
period for any Person, statements of operations, retained earnings and cash
flows of such Person for such period, and balance sheets of such Person as of
the end of such period, setting forth in each case in comparative form figures
for the corresponding period in the preceding fiscal year if such period is less
than a full fiscal year or, if such period is a full fiscal year, corresponding
figures from the preceding fiscal year, all prepared in reasonable detail and in
accordance with generally accepted accounting principles. Unless otherwise
indicated, each reference to Financial Statements of any Person shall be deemed
to refer to audited Financial Statements prepared on a consolidated basis.

        1.8 "FUNDAMENTAL CHANGE" means with respect to the Company (a) a merger
or consolidation, direct or indirect, whether by operation of law or otherwise,
(b) any liquidation, winding up or dissolution pursuant to Article IV, Part C,
Section 3(c) of the Certificate, (c) any sale of all or substantially all of the
assets of the Company.

        1.9 "HOLDER" shall mean the Person specified in the introductory
paragraph of this Debenture or any Person who shall at the time be the holder of
this Debenture.

        1.10 "INDEBTEDNESS" shall mean and include the aggregate amount of,
without duplication: (a) all obligations for borrowed money, (b) all obligations
evidenced by bonds, debentures, notes or other similar instruments, (c) all
obligations to pay the deferred purchase

                                       2.
<PAGE>   31

price of property or services (other than accounts payable and current
liabilities incurred in the ordinary course of business determined in accordance
with generally accepted accounting principals), (d) all obligations with respect
to capital leases, (e) all guaranty obligations; (f) all obligations created or
arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person, (g) all reimbursement and other
payment obligations, contingent or otherwise, in respect of letters of credit.

        1.11 "INTELLECTUAL PROPERTY" shall mean all of the Company's right,
title and interest in and to patents, patent rights (and applications therefor),
trademarks and service marks (and applications and registrations therefor),
inventions, copyrights, mask works (and applications and registrations
therefor), trade names, trade styles, software and computer programs, trade
secrets, methods, processes, know how, drawings, specifications, descriptions,
and all memoranda, notes, and records with respect to any research and
development, all whether now owned or subsequently acquired or developed by the
Company.

        1.12 "LIEN" shall mean, with respect to any property, any security
interest, mortgage, pledge, lien, claim, charge or other encumbrance in, of, or
on such property or the income therefrom, including, without limitation, the
interest of a vendor or lessor under a conditional sale agreement, capital lease
or other title retention agreement, or any agreement to provide any of the
foregoing and the filing of any financing statement or similar instrument under
the Uniform Commercial Code or comparable law of any jurisdiction.

        1.13 "MATERIAL ADVERSE EFFECT" shall mean a material adverse effect on:
(a) the business, assets, operations, or financial condition of the Company; or
(b) the ability of the Company to repay the Indebtedness under this Debenture or
any of the other Transaction Documents.

        1.14 "OBLIGATIONS" shall mean and include all loans, advances, debts,
liabilities and obligations, howsoever arising, owed by the Company to the
Holder of every kind and description (whether or not evidenced by any note or
instrument and whether or not for the payment of money), now existing or
hereafter arising under or pursuant to the terms of this Debenture and the other
Transaction Documents, including, all interest, fees, charges, expenses,
attorneys' fees and costs and accountants' fees and costs chargeable to and
payable by the Company hereunder and thereunder, in each case, whether direct or
indirect, absolute or contingent, due or to become due, and whether or not
arising after the commencement of a proceeding under Title 11 of the United
States Code (11 U.S.C. Section 101 et seq.), as amended from time to time
(including post-petition interest) and whether or not allowed or allowable as a
claim in any such proceeding.

        1.15 "PERMITTED LIENS" shall mean and include:

             (a) liens and security interests existing as of this date and
disclosed in the Schedule attached hereto and incorporated herein by this
reference;

             (b) liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by
appropriate proceedings;

                                       3.
<PAGE>   32

             (c) liens and security interests (a) upon or in any property
acquired or held by the Company together with accessions thereto and
replacements and substitutions therefore to secure the purchase price of such
property or indebtedness incurred solely for the purpose of financing the
acquisition of such property and in an amount not greater than the purchase
price thereof (plus taxes, installation and other incidental costs) or (b)
existing on such property at the time of its acquisition, provided that the lien
and security interest is confined solely to the property so acquired and
improvements thereon, and the proceeds of such property;

             (d) liens consisting of leases or subleases and licenses and
sublicenses granted to others in the ordinary course of the Company's business
not interfering in any material respect with the business of the Company and any
interest or title of a lessor or licensor under any lease or license, as
applicable;

             (e) liens securing claims or demands of materialmen, mechanics,
carriers, warehousemen, landlords and other like persons or entities imposed
without action of such parties, provided that the payment thereof is not yet
required;

             (f) liens incurred or deposits made in the ordinary course of the
Company's business in connection with worker's compensation, unemployment
insurance, social security and other like laws;

             (g) liens arising from judgments, decrees or attachments in
circumstances not constituting an Event of Default;

             (h) easements, reservations, rights-of-way, restrictions, minor
defects or irregularities in title and other similar charges or encumbrances
affecting real property not interfering in any material respect with the
ordinary conduct of the Company's business;

             (i) liens in favor of customs and revenue authorities arising as a
matter of law to secure payment of customs duties in connection with the
importation of goods;

             (j) liens which constitute rights of set-off of a customary nature;

             (k) any interest or title of a lessor in equipment subject to any
capitalized lease otherwise permitted hereunder;

             (l) any liens arising from the filing of any financing statements
relating to true leases otherwise permitted hereunder;

             (m) liens, not otherwise permitted, which liens do not in the
aggregate exceed $100,000 at any time.

        1.16 "PERSON" shall mean and include an individual, a partnership, a
corporation (including a business trust), a joint stock company, a limited
liability company, an unincorporated association, a joint venture or other
entity or a governmental authority.

                                       4.
<PAGE>   33

        1.17 "PREFERRED STOCK" shall mean and Series AA Preferred Stock, Series
BB Preferred Stock, Series CC Preferred Stock, Series DD Preferred Stock, Series
EE Preferred Stock, or any other series of preferred stock issued by the
Company.

        1.18 "QUALIFIED PUBLIC OFFERING" shall have the meaning ascribed to that
term in the Company's Certificate of Incorporation, as may be amended from time
to time.

        1.19 "RELATED DEBENTURES" shall mean the Subordinated Unsecured
Convertible Debenture dated of even date herewith issued to Purchasers by the
Company.

        1.20 "REQUIRED HOLDERS" shall mean at any time Holders then holding
greater than fifty percent (50%) of the aggregate Series EE Preferred issued or
issuable upon conversion of this Debenture and Related Debentures (on an
as-if-converted basis).

        1.21 "SERIES EE PREFERRED" shall mean the Company's presently authorized
Series EE Preferred Stock.

        1.22 "SUBSIDIARY" shall mean: (a) any corporation of which more than 50%
of the issued and outstanding Equity Securities having ordinary voting power to
elect a majority of the Board of Directors of such corporation is at the time
directly or indirectly owned or controlled by the Company, (b) any partnership,
joint venture, or other association of which more than 50% of the equity
interest having the power to vote, direct or control the management of such
partnership, joint venture or other association is at the time directly or
indirectly owned and controlled by the Company (c) any other entity included in
the financial statements of the Company on a consolidated basis.

        1.23 "SEVENTH AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT" shall
mean the Seventh Amended and Restated Investors' Rights Agreement dated of even
date herewith between the Company and the Investors listed therein.

        1.24 "TRANSACTION DOCUMENTS" shall mean (a) this Debenture and the
Related Debentures; (b) the Seventh Amended and Restated Investors' Rights
Agreement, (c) the Convertible Debenture Purchase Agreement; and (d) amendments,
exhibits, and schedules to the foregoing.

        All capitalized terms used herein and not otherwise defined herein shall
have the respective meanings given to them in the Debenture Purchase Agreement.

2. SOLVENCY.

           The Company represents and warrants to the Holder as of the Initial
Closing that the Company is Solvent (as defined below) and, after the execution
and delivery of the Transaction Documents and the consummation of the
transactions contemplated thereby, each of the Company and its Subsidiaries will
be Solvent. "Solvent" shall mean, with respect to any Person on any date, that
on such date (a) the fair value of the property of such Person is greater than
the fair value of the liabilities (including without limitation, contingent
liabilities) of such Person, (b) the present fair saleable value of the assets
of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and

                                       5.
<PAGE>   34

matured, (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person's ability to pay such debts and
liabilities as they mature and (d) such Person is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which
such Person's property would constitute unreasonably small capital.

3. INTEREST AND PLACE OF PAYMENT.

        Interest on the outstanding principal balance on this Debenture shall be
payable in arrears not later than the first Business Day of each calendar
quarter for the preceding calendar quarter from the date hereof through the
Maturity Date. All amounts payable hereunder shall be payable at the offices of
Holder as designated on the signature page hereof, or any other address
designated by Holder.

4. PREPAYMENT.

        4.1 PREPAYMENT. No prepayment of this Debenture in whole or in part is
permitted except that, at the option of the Holder, the Company shall repay, in
whole or in part, this Debenture, upon the occurrence of any of the following:
(a) a Change of Control, or (b) subject to Section 9.2, the completion of a
Qualified Public Offering, or (c) a Fundamental Change, or joint venture,
liquidation or similar transaction of the Company that affects a material
portion of the assets, business lines of the Company or the ability of the
Company to continue as a viable business, (each a "Mandatory Prepayment Event").

        4.2 NOTICE.

             (a) In the event that any Mandatory Prepayment Event shall occur or
the Company shall have knowledge of any proposed Mandatory Prepayment Event, the
Company will give written notice (the "Company Notice") of such fact in the
manner provided in Section 4.2(a) hereof to the Holders of the Debentures. The
Company Notice shall be delivered promptly upon receipt of such knowledge by the
Company and in any event no later than ten (10) Business Days following the
occurrence of any Mandatory Prepayment Event. The Company Notice shall (i)
describe the facts and circumstances of such Mandatory Prepayment Event in
reasonable detail, (ii) make reference to this Section 4.2(a) and the right of
the Holders of the Debentures to require prepayment, in whole or in part, of the
Debentures on the terms and conditions provided for in this Section 4.2(a),
(iii) offer in writing to prepay the outstanding Debentures, together with
accrued interest to the date of prepayment, and (iv) specify a date for such
prepayment (the "Mandatory Prepayment Event Prepayment Date"), which Mandatory
Prepayment Event Prepayment Date shall be not more than 90 days nor less than 30
days following the date of such the Company Notice. Each Holder of then
outstanding Debentures shall have the right to accept such offer and require
prepayment of the Debentures held by such Holder by written notice to the
Company (a "Debenture Holder Notice") given not later than 20 days after receipt
of the Company Notice. The Company shall on the Mandatory Prepayment Event
Prepayment Date prepay all of the Debentures held by Holders which have so
accepted such offer of prepayment. The prepayment price of the Debentures
payable upon the occurrence of any Mandatory Prepayment Event shall be an amount
equal to the outstanding principal amount of the Debentures so to be prepaid and
accrued interest thereon to the date of such prepayment.

                                       6.
<PAGE>   35

             (b) Without limiting the foregoing, notwithstanding any failure on
the part of the Company to give the Company Notice herein required as a result
of the occurrence of a Mandatory Prepayment Event, each Holder of the Debentures
shall have the right on the occurrence of a Mandatory Prepayment Event by
delivery of written notice to the Company to require the Company to prepay, in
whole or in part, and the Company will prepay, such Holder's Debentures,
together with accrued interest thereon to the date of prepayment. Notice of any
required prepayment pursuant to this Section 4.2(b) shall be delivered by any
Holder of the Debentures which was entitled to, but did not receive, such the
Company Notice to the Company after such Holder has actual knowledge of such
Mandatory Prepayment Event. On the date (the "Mandatory Prepayment Event Delayed
Prepayment Date") designated in such Holder's notice (which shall be not more
than 90 days nor less than 30 days following the date of such Holder's notice),
the Company shall prepay all of the Debentures held by such Holder, together
with accrued interest thereon to the date of prepayment. If the Holder of any
Debenture gives any notice pursuant to this Section 4.2(b), the Company shall
give a the Company Notice within three Business Days of receipt of such notice
and identify the Mandatory Prepayment Event Delayed Prepayment Date to all other
Holders of the Debentures and each of such other Holders shall then and
thereupon have the right to accept the Company's offer to prepay the Debentures
held by such Holder and require prepayment of such Debentures by delivery of a
Debenture Holder Notice within 20 days following receipt of such the Company
Notice; provided only that any date for prepayment of such Holder's Debentures
shall be the Mandatory Prepayment Event Delayed Prepayment Date. On the
Mandatory Prepayment Event Delayed Prepayment Date, the Company shall prepay the
Debentures of each Holder thereof which has accepted such offer of prepayment at
a prepayment price equal to the outstanding principal amount of the Debentures
so to be prepaid and accrued interest thereon to the date of such prepayment.

        4.3 MATURITY; SURRENDER, ETC. In the case of each complete prepayment of
Debentures pursuant to this Section 4, the principal amount of each Debenture to
be prepaid shall mature and become due and payable on the date fixed for such
prepayment, together with interest on such principal amount accrued to such
date. From and after such date, unless the Company shall fail to pay such
principal amount when so due and payable, together with the interest, interest
on such principal amount shall cease to accrue. Any Debenture prepaid in full
shall be surrendered to the Company and cancelled and shall not be reissued, and
no Debenture shall be issued in lieu of any prepaid principal amount of any
Debenture.

        4.4 AFFILIATES. The Company will not and will not permit any affiliate
to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of
the outstanding Debentures except upon the payment or prepayment of the
Debentures in accordance with the terms of this Debenture and the Debentures.

5. AFFIRMATIVE COVENANTS.

        While any amount is outstanding under this Debenture, the Company
covenants that it will do the following:

        5.1 COMPLIANCE AND MAINTENANCE OF CORPORATE EXISTENCE. Maintain its
corporate existence and observe and comply in all material respects with all
applicable laws and valid requirements of any governmental authorities relative
to its corporate existence, rights and

                                       7.
<PAGE>   36

franchises, to the conduct of its business and to its property and assets, and
shall maintain and keep in full force and effect all licenses and permits
necessary in any material respect to the proper conduct of its business.

        5.2 PROPERTY MAINTENANCE AND INSURANCE. Maintain its properties in good
repair, working order and condition as required for the normal conduct of its
business and shall at all times maintain liability and casualty insurance with
financially sound and reputable insurers in such amounts as the Holder shall
reasonably deem to be adequate. The Company shall furnish to Holder certificates
or other evidence satisfactory to Holder of compliance with the foregoing
insurance provisions.

        5.3 TAX. The Company shall pay or cause to be paid all taxes,
assessments or governmental charges on or against it or its properties on or
prior to the time when they become due; provided that this covenant shall not
apply to any tax, assessment or charge that is being contested in good faith by
appropriate proceedings and with respect to which adequate reserves have been
established and are being maintained in accordance with generally accepted
accounting principles if no Lien shall have been filed to secure such tax,
assessment or charge.

        5.4 MAINTENANCE OF BOOKS AND RECORDS. The Company shall keep adequate
books and records of account, in which true and complete entries will be made
reflecting all of its business and financial transactions, and such entries will
be made in accordance with generally accepted accounting principles consistently
applied and applicable law.

        5.5 NO IMPAIRMENT. The Company will not, by amendment of its Certificate
or through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities, or any other voluntary action, avoid
or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company.

        5.6 FURTHER ASSURANCE. At any time and from time to time the Company
shall execute and deliver such further instruments and take such further action
as may reasonably be requested by Holder to effect the purposes of this
Debenture.

        5.7 ADJUSTMENTS. The Company shall make all adjustments to the Series EE
Conversion Price (as defined in the Certificate) as if such series of Preferred
Stock had been issued and outstanding from the date of this Debenture.

6. NEGATIVE COVENANTS.

        From the date hereof until all Obligations to Holder are paid or
converted pursuant to their terms, without the prior written consent of the
Required Holders, the Company shall not do the following:

        6.1 INDEBTEDNESS. Create, incur, assume or permit to exist any
Indebtedness except

             (a) Indebtedness pursuant to agreements existing on the date
hereof;

             (b) trade credit in the ordinary course of business;

                                       8.
<PAGE>   37

             (c) Indebtedness pursuant to the Debenture Purchase Agreement;

             (d) Contingent obligations of the Company consisting of guarantees
(and other credit support) of the obligations of vendors and suppliers of the
Company in respect of transactions entered into in the ordinary course of
business;

             (e) Indebtedness with respect to capital lease obligations;

             (f) Indebtedness related to any Permitted Liens; and

             (g) Extensions, renewals, refunding, refinancings, modifications,
amendments and restatements of any of the items (a) through (f) above, which
shall require the approval of Required Holders.

        6.2 LIENS. Create, incur, assume or permit to exist any Lien on or with
respect to any of its assets or property of any character, whether now owned or
hereafter acquired, except for Permitted Liens

        6.3 DIVIDENDS, REDEMPTIONS, ETC. Do any of the following in excess of
$250,000 in any fiscal year: (a) pay dividends or make any distributions on its
Equity Securities; (b) purchase, redeem, retire, decease or otherwise acquire
for value any of its Equity Securities; (c) return any capital to any holder of
its Equity Securities; (d) make any distribution of assets, Equity Securities,
obligations or securities to any holder of its Equity Securities; or (e) set
apart any sum for any such purpose; provided, however, that any Subsidiary may
pay cash dividends to the Company.

        6.4 ERISA. Permit any retirement plan maintained by it to: (a) engage in
any "prohibited transaction", (b) incur any "accumulated funding deficiency" (as
defined in Section 302 of ERISA) whether or not waived, or (c) terminate any
retirement plan in a manner that could result in the imposition of a Lien or
encumbrance on the assets of the Company or any of its Subsidiaries pursuant to
Section 4068 of ERISA.

        6.5 SERIES EE PREFERRED. Alter any of the rights, preferences or
privileges of the Series EE Preferred as set forth as of the date of this
Debenture in the Certificate, or otherwise approve any action listed in Article
IV, Part C, Section 6 of the Certificate.

7. EVENTS OF DEFAULT.

        The occurrence and continuation of any of the following shall constitute
an "Event of Default" under this Debenture and the other Transaction Documents:

        7.1 FAILURE TO PAY. The Company shall fail to pay (a) any principal
payment within fifteen (15) days of the due date, or (b) any interest or other
payment required under the terms of this Debenture or any other Transaction
Document within fifteen (15) days of the due date; or

        7.2 BREACHES OF CERTAIN COVENANTS. The Company or any of its
Subsidiaries shall fail to observe or perform any covenant, obligation,
condition or agreement set forth in Sections 5 or 6 of this Debenture; or

                                       9.
<PAGE>   38

        7.3 BREACHES OF OTHER COVENANTS. The Company or any of its Subsidiaries
shall fail to observe or perform any other covenant, obligation, condition or
agreement contained in this Debenture or the other Transaction Documents (other
than those specified in Sections 7.1 and 7.2) and (a) such failure shall
continue for fifteen (15) days following the receipt of written notice by the
Company, or (b) if such failure is not curable within such fifteen (15) day
period, but is reasonably capable of cure within forty-five (45) days, either
(i) such failure shall continue for forty-five (45) days or (ii) the Company or
its Subsidiary shall not have commenced a cure in a manner reasonably
satisfactory to the Holder within the initial fifteen (15) day period; or

        7.4 REPRESENTATIONS AND WARRANTIES. Any representation, warranty,
certificate, or other statement (financial or otherwise) made or furnished by
the Company to the Holder in writing signed by an officer of the Company in
connection with this Debenture or any of the other Transaction Documents, or as
an inducement to the Holder to enter into this Debenture and the other
Transaction Documents, shall be false, incorrect, incomplete or misleading in
any material respect when made or furnished; or

        7.5 OTHER PAYMENT OBLIGATIONS. The Company or any of its Subsidiaries
shall (a)(i) fail to make any payment when due under the terms of any bond,
debenture, note or other evidence of Indebtedness, to be paid by such Person
(excluding this Debenture and the other Transaction Documents but including any
other evidence of Indebtedness of the Company or any of its Subsidiaries to the
Holder) and such failure shall continue beyond any grace period provided with
respect thereto, or (ii) default in the observance or performance of any other
agreement, term or condition contained in any such bond, debenture, note or
other evidence of Indebtedness, and (b) the effect of such failure or default is
to cause the holder or holders thereof to cause, Indebtedness in an aggregate
amount of Two Hundred Thousand Dollars ($200,000) or more to become due prior to
its stated date of maturity;

        7.6 VOLUNTARY BANKRUPTCY OR INSOLVENCY PROCEEDINGS. The Company or any
of its Subsidiaries shall (a) apply for or consent to the appointment of a
receiver, trustee, liquidator or custodian of itself or of all or a substantial
part of its property, (b) be unable, or admit in writing its inability, to pay
its debts generally as they mature, (c) make a general assignment for the
benefit of its or any of its creditors, (d) be dissolved or liquidated in full
or in part, (e) become insolvent (as such term may be defined or interpreted
under any applicable statute), (f) commence a voluntary case or other proceeding
seeking liquidation, reorganization or other relief with respect to itself or
its debts under any bankruptcy, insolvency or other similar law now or hereafter
in effect or consent to any such relief or to the appointment of or taking
possession of its property by any official in an involuntary case or other
proceeding commenced against it, or (g) take any action for the purpose of
effecting any of the foregoing; or

        7.7 INVOLUNTARY BANKRUPTCY OR INSOLVENCY PROCEEDINGS. Proceedings for
the appointment of a receiver, trustee, liquidator or custodian of the Company
or any of its Subsidiaries or of all or a substantial part of the property
thereof, or an involuntary case or other proceedings seeking liquidation,
reorganization or other relief with respect to the Company or any of its
Subsidiaries or the debts thereof under any bankruptcy, insolvency or other
similar law now or hereafter in effect shall be commenced and an order for
relief entered or such proceeding shall not be dismissed or discharged within
sixty (60) days of commencement; or

                                      10.
<PAGE>   39

        7.8 JUDGMENTS. A final judgment or order for the payment of money in
excess of Two Hundred Thousand Dollars ($200,000) (exclusive of amounts covered
by insurance issued by an insurer not an affiliate of the Company) shall be
rendered against the Company or any of its Subsidiaries and the same shall
remain unpaid for a period of thirty (30) days during which execution shall not
be effectively stayed, or any judgment, writ, assessment, warrant of attachment,
or execution or similar process shall be issued or levied against a substantial
part of the property of the Company or any of its Subsidiaries and such
judgment, writ, or similar process shall not be released, stayed, vacated or
otherwise dismissed within thirty (30) days after issue or levy.

8. RIGHTS OF HOLDER UPON DEFAULT.

        Upon the occurrence or existence of any Event of Default (other than an
Event of Default referred to in Sections 7.6 and 7.7) and at any time thereafter
during the continuance of such Event of Default, the Holder may, by written
notice to the Company, declare all outstanding Obligations payable by the
Company hereunder to be immediately due and payable without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived, anything contained herein or in the other Transaction Documents to the
contrary notwithstanding. Upon the occurrence or existence of any Event of
Default described in Sections 7.6 and 7.7, immediately and without notice, all
outstanding Obligations payable by the Company hereunder shall automatically
become immediately due and payable, without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived, anything
contained herein or in the other Transaction Documents to the contrary
notwithstanding. In addition to the foregoing remedies, upon the occurrence or
existence of any Event of Default, the Holder may exercise any other right,
power or remedy granted to it by the Transaction Documents or otherwise
permitted to it by law, either by suit in equity or by action at law, or both.

9. CONVERSION.

        9.1 CONVERSION BY HOLDER. At any time prior to the Maturity Date, the
Holder shall have the right, at such Holder's option, to convert this Debenture
in accordance with the terms hereof, in whole or in part, into fully paid and
nonassessable shares of Series EE Preferred. The number of shares of Series EE
Preferred into which this Debenture may be converted shall be determined by
dividing the aggregate amount of this Debenture to be converted by the
Conversion Price (as defined below) in effect at the time of such conversion.
The initial "Conversion Price" per share shall be $8.00, or, if the Company has
consummated a Qualified Public Offering, the lesser of $8.00 or the initial
"Price to Public" specified in the final prospectus related thereto. The
Conversion Price shall be subject to adjustment from time to time pursuant to
Section 10 hereof.

        9.2 CONVERSION BY THE COMPANY. In the event that the Company completes a
Qualified Public Offering, the Company shall have the right, at the Company's
option, to convert this Debenture, in accordance with the provisions hereof, in
whole or in part, into fully paid and nonassessable shares of Series EE
Preferred. The number of shares of Series EE Preferred into which this Debenture
may be converted shall be determined by dividing the aggregate amount of this
Debenture to be converted by the Conversion Price pursuant to Section 9.1 above,
in effect at the time of such conversion.

                                      11.
<PAGE>   40

        9.3 CONVERSION PROCEDURE.

             (a) CONVERSION PURSUANT TO SECTION 9.1. Before the Holder shall be
entitled to convert this Debenture into shares of Series EE Preferred, it shall
surrender this Debenture, duly endorsed, at the office of the Company and shall
give written notice, postage prepaid, to the Company at its principal corporate
office, of the election to convert the same pursuant to Section 9.1, and shall
state therein the amount of the unpaid principal amount of this Debenture to be
converted and the name or names in which the certificate or certificates for
shares of Series EE Preferred are to be issued. The Company shall, as soon as
practicable thereafter (but in any event within ten (10) days thereafter), issue
and deliver to the Holder of this Debenture a certificate or certificates for
the number of shares of Series EE Preferred to which the Holder shall be
entitled upon conversion (bearing such legends as are required by applicable
state and federal securities laws), together with a replacement Debenture (if
any principal amount is not converted) and any other securities and property to
which the Holder is entitled upon such conversion under the terms of this
Debenture, including a check payable to Holder for any cash amounts payable as
described in Section 9.4. The conversion shall be deemed to have been made
immediately prior to the close of business on the date of the surrender of this
Debenture, and the Person or Persons entitled to receive the shares of Series EE
Preferred upon such conversion shall be treated for all purposes as the record
holder or holders of such shares of Series EE Preferred as of such date.

             (b) CONVERSION PURSUANT TO SECTION 9.2. If this Debenture is
converted by the Company pursuant to Section 9.2 written notice shall be
delivered to the Holder notifying the Holder of the conversion to be effected,
specifying the Conversion Price, the principal amount of the Debenture to be
converted, the date on which such conversion is expected to occur and calling
upon such Holder to surrender to the Company, in the manner and at the place
designated, the Debenture. Upon such conversion of this Debenture, the Holder
shall surrender this Debenture, duly endorsed, at the principal office of the
Company. At its expense, the Company shall, as soon as practicable thereafter
(but in any event within ten (10) days thereafter), issue and deliver to such
Holder a certificate or certificates for the number of shares to which Holder
shall be entitled upon such conversion (bearing such legends as are required by
applicable state and federal securities laws), together with any other
securities and property to which the Holder is entitled upon such conversion
under the terms of this Debenture, including a check payable to the Holder for
any cash amounts payable as described in Section 9.4. Any conversion of this
Debenture pursuant to Section 9.2 shall be deemed to have been made immediately
prior to the closing of the issuance and sale of shares as described in Section
9.2 and on and after such date the Person entitled to receive the shares
issuable upon such conversion shall be treated for all purpose as the record
Holder of such shares as of such date.

        9.4 FRACTIONAL SHARES; INTEREST; EFFECT OF CONVERSION. No fractional
shares shall be issued upon conversion of this Debenture. In lieu of the Company
issuing any fractional shares to the Holder upon the conversion of this
Debenture, the Company shall pay to the Holder an amount equal to the product
obtained by multiplying the Conversion Price by the fraction of a share not
issued pursuant to the previous sentence. In addition, the Company shall pay to
the Holder any interest accrued on the amount converted and on the amount to be
paid by the Company pursuant to the previous sentence.

                                      12.
<PAGE>   41

10. CONVERSION PRICE ADJUSTMENTS.

        10.1 ADJUSTMENTS FOR STOCK SPLITS AND SUBDIVISIONS. In the event the
Company at any time or from time to time after the date of issuance hereof fixes
a record date for the effectuation of a split or subdivision of the outstanding
shares of Series EE Preferred or the determination of holders of Series EE
Preferred entitled to receive a dividend or other distribution payable in
additional shares of Series EE Preferred or other securities or rights
convertible into, or entitling the holder thereof to receive directly or
indirectly, additional shares of Series EE Preferred (hereinafter referred to as
"Series EE Preferred Equivalents") without payment of any consideration by such
holder for the additional shares of Series EE Preferred or the Series EE
Preferred Equivalents (including the additional shares of Series EE Preferred
issuable upon conversion or exercise thereof), then, as of such record date (or
the date of such dividend distribution, split or subdivision if no record date
is fixed), the Conversion Price of this Debenture shall be appropriately
decreased so that the number of shares of Series EE Preferred issuable upon
conversion of this Debenture shall be increased in proportion to such increase
of outstanding shares.

        10.2 ADJUSTMENTS FOR REVERSE STOCK SPLITS. If the number of shares of
Series EE Preferred outstanding at any time after the date hereof is decreased
by a combination of the outstanding shares of Series EE Preferred then following
the record date of such combination, the Conversion Price for this Debenture
shall be appropriately increased so that the number of shares of Series EE
Preferred issuable on conversion hereof shall be decreased in proportion to such
decrease in outstanding shares.

        10.3 ADJUSTMENTS FOR DILUTING ISSUANCES. In the event the Company shall
issue Additional Shares of Common Stock (as defined in the Certificate), then in
such event, the applicable Conversion Price (as defined in the Certificate)
shall be reduced pursuant to Article IV, Part C, Section 4 of the Certificate.

        10.4 ADJUSTMENT FOR RECLASSIFICATION, EXCHANGE AND SUBSTITUTION. If the
Series EE Preferred issuable upon the conversion of this Debenture is changed
upon the approval of a majority of the holders of Series EE Preferred (on an
as-if-converted basis) into the same or a different number of shares of any
class or classes of stock, whether by recapitalization, reclassification, or
otherwise (other than a subdivision or combination of shares of stock dividend
of a reorganization, merger, consolidation or sale of assets, provided for
elsewhere in this subsection), then, and in any such event, the Holder shall
have the right thereafter to convert this Debenture into the kind and amount of
stock and other securities and property receivable upon such reorganization,
reclassification, or other change by holders of the number of shares of Series
EE Preferred into which this Debenture would have been converted immediately
prior to such reorganization, reclassification, or change.

        10.5 CONVERSION OF SERIES EE PREFERRED. Should all of the Company's
Series EE Preferred be, or if outstanding would be, at any time prior to full
payment of this Debenture, converted into shares of the Company's Common Stock
in accordance with Article IV, Part C, Section 4 of the Certificate, then this
Debenture shall immediately become convertible into that number of shares of the
Company's Common Stock equal to the number of shares of the Common Stock that
would have been received if this Debenture had been converted in full and

                                      13.
<PAGE>   42

the Series EE Preferred received thereupon had been converted as a result of
such event, and the Conversion Price shall be immediately adjusted to equal the
quotient obtained by dividing (a) the aggregate Conversion Price of the maximum
number of shares of Series EE Preferred into which this Debenture was
convertible immediately prior to such conversion, by (b) the number of shares of
Common for which this Debenture is convertible immediately after such
conversion. In any such event, reference to Series EE Preferred Stock in this
Section 10 shall be deemed to be reference to Common Stock.

        10.6 NOTICES OF RECORD DATE, ETC. In the event of:

             (a) Any taking by the Company of a record of the holders of any
class of securities of the Company for the purpose of determining the holders
thereof who are entitled to receive any dividend (other than a cash dividend
payable out of earned surplus at the same rate as that of the last such cash
dividend theretofore paid) or other distribution, or any right to subscribe for,
purchase or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other right; or

             (b) Any capital reorganization of the Company, any reclassification
or recapitalization of the capital stock of the Company or any transfer of all
or substantially all of the assets of the Company to any other Person or any
consolidation or merger involving the Company; or

             (c) Any voluntary or involuntary dissolution, liquidation or
winding-up of the Company (including any deemed liquidation pursuant to the
Certificate),

the Company will mail to Holder of this Debenture at least twenty (20) days
prior to the earliest date specified above, a notice specifying (i) the date on
which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right; and (ii) the date on which any such reorganization,
reclassification, transfer, consolidation, merger, dissolution, liquidation or
winding-up is expected to become effective and the record date for determining
stockholders entitled to vote thereon.

        10.7 RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The Company shall at
all times reserve and keep available out of its authorized but unissued shares
of Series EE Preferred solely for the purpose of effecting the conversion of
this Debenture into such number of its shares of Series EE Preferred (and shares
of its Common Stock for issuance on conversion of such Series EE Preferred or
this Debenture following any of the events specified in Section 10.5) as shall
from time to time be sufficient to effect the conversion of the Debenture; and
if at any time the number of authorized but unissued shares of Series EE
Preferred (and shares of its Common Stock for issuance on conversion of such
Series EE Preferred or this Debenture following any of the events specified in
Section 10.5) shall not be sufficient to effect the conversion of the entire
outstanding principal amount of this Debenture, without limitation of such other
remedies as shall be available to the holder of this Debenture, the Company will
take such corporate action as may, in the opinion of counsel, be necessary to
increase its authorized but unissued shares of Series EE Preferred (and shares
of its Common Stock for issuance on

                                      14.
<PAGE>   43

conversion of such Series EE Preferred or this Debenture following any of the
events specified in Section 10.5) to such number of shares as shall be
sufficient for such purposes.

11. SUCCESSORS AND ASSIGNS.

        Neither this Debenture nor any of the rights, interests or obligations
hereunder may be assigned, in whole or in part, by the Company without the prior
written consent of the Required Holders, except in connection with a merger,
acquisition, consolidation or sale of all or substantially all of the assets of
the Company, if no Event of Default has occurred or is continuing or results
therefrom. Subject to the foregoing, the rights and obligations of the Company
and the Holder shall be binding upon and benefit the successors, assigns, heirs,
administrators and transferees of the parties.

12. WAIVER AND AMENDMENT.

        Any provision of this Debenture may be amended, waived or modified upon
the written consent of the Company and Required Holders.

13. NOTICES.

        Any notice, request or other communication required or permitted
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered or mailed by registered or certified mail, postage prepaid,
or by a recognized overnight courier or personal delivery, addressed (a) if to
the Holder, at such Holder's address as set forth at the end of this Debenture,
or at such other address as such Holder shall have furnished the Company in
writing, or (b) if to the Company, at its address set forth at the end of this
Debenture, or at such other address as the Company shall have furnished to the
Holder in writing. Any party hereto may by notice so given change its address
for future notice hereunder. Notice shall conclusively be deemed to have been
given when received.

14. PAYMENT.

        Payment shall be made in lawful tender of the United States.

15. DEFAULT RATE.

        During any period in which an Event of Default has occurred and is
continuing, the Company shall pay interest on the unpaid principal balance
hereof and any accrued but unpaid interest at a rate per annum equal to thirteen
percent (13%).

16. USURY.

        Anything in this Debenture to the contrary notwithstanding, the Company
shall never be required to pay interest on this Debenture at a rate in excess of
the Highest Lawful Rate (as hereinafter defined), and if the effective rate of
interest which would otherwise be payable under this Debenture would exceed the
Highest Lawful Rate, or if the maturity of this Debenture is accelerated for any
reason before the Maturity Date or if the Holder shall otherwise receive any
unearned interest or shall receive monies that are deemed to constitute interest
which would

                                      15.
<PAGE>   44

increase the effective rate of interest payable under this Debenture to a rate
in excess of the Highest Lawful Rate, or in the event of conversion of this
Debenture prior to the Maturity Date, then (a) the amount of interest which
would otherwise be payable under this Debenture shall be reduced to the maximum
amount allowed under applicable law, and (b) any interest paid by the Company in
excess of the Highest Lawful Rate shall be credited to the principal of this
Debenture. It is further agreed that, without limitation of the foregoing, all
calculations of the rate of interest contracted for, charged, or received by the
Holder under this Debenture that are made for the purpose of determining whether
such rate exceeds the Highest Lawful Rate, shall be made to the extent permitted
by applicable usury laws (now or hereafter enacted), by amortizing, prorating,
and spreading in equal parts during the period of the full stated term of this
Debenture all interest at any time contracted for, charged or received by the
Holder in connection herewith. The "Highest Lawful Rate" shall mean the maximum
rate of interest which the Holder is permitted by applicable law to contract
for, charge, or receive and as to which the Company could not successfully
assert a claim or defense of usury.

17. EXPENSES.

        The Company shall pay on demand all reasonable fees and expenses,
including reasonable attorneys' fees and expenses, incurred by the Holder with
respect to the enforcement or attempted enforcement of any of the obligations of
the Company to the Holder under the Transaction Documents or in preserving any
of the Holder's rights and remedies (including, without limitation, all such
fees and expenses incurred in connection with any "workout" or restructuring
affecting the Transaction Documents or the obligations thereunder or any
bankruptcy or similar proceeding involving the Company or any of its
Subsidiaries).

18. REPLACEMENT DEBENTURE.

        Upon receipt by the Company of evidence reasonably satisfactory to it of
the ownership of and the loss, theft, destruction or mutilation of any Debenture
and (a) in the case of loss, theft or destruction, of indemnity reasonably
satisfactory to it; or (b) in the case of mutilation, upon surrender thereof;
the Company, at its expense, will execute and deliver in lieu thereof a new
Debenture executed in the same manner as the Debenture being replaced, in the
same principal amount as the unpaid principal amount of such Debenture and dated
the date to which interest shall have been paid on such Debenture or, if no
interest shall have yet been so paid, dated the date of such Debenture.

19. GOVERNING LAW; INTERPRETATION.

        This Debenture and all actions arising out of or in connection with this
Debenture shall be governed by and construed in accordance with the laws of the
State of California, without regard to the conflicts of law provisions of the
State of California or of any other state. If any provision of this Debenture is
held to be invalid or unenforceable by a court of competent jurisdiction, the
other provisions of this Debenture shall remain in full force and effect and
Holder may at any time thereafter require payment in full of all amounts due
hereunder.

                                      16.
<PAGE>   45

20. WAIVER, REPRESENTATION.

        Presentment for payment, demand, notice of dishonor, protest, notice of
protest, and stay of execution in connection with the delivery, acceptance,
performance, default or enforcement of the payment of this Debenture are hereby
waived by the Company and its successors and assigns. Neither extension nor
indulgence granted from time to time shall be construed as a novation of this
Debenture or as a reinstatement of the indebtedness evidenced hereby or as a
waiver of the rights of Holder herein. The liability of the Company shall be
unconditional, without regard to the liability of any other party, and shall not
be in any manner affected by any forbearance, partial action or delay on the
part of Holder in regard to the exercise of any right, power or remedy under
this Debenture.

21. SECTION HEADINGS.

        The headings of Sections shall not be taken into account in interpreting
the terms of this Debenture.

                                      17.
<PAGE>   46

        IN WITNESS WHEREOF, the Company has caused this Debenture to be issued
as of the date first written above.

                                   REPEATER TECHNOLOGIES, INC.,
                                   a Delaware corporation

                                   By:
                                      ----------------------------------------
                                      Ken Kenitzer, President

                                      Address: 1150 Morse Avenue
                                               Sunnyvale, CA 94089

                                      18.
<PAGE>   47

                           SCHEDULE OF PERMITTED LIENS

Liens filed with the California Secretary of State having the following filing
numbers and related filings with the US Patent and Trademark Office and the US
Copyright Office:

9621160381

9705260834

9819760681

9722760199

9729061040

9731060581

9832460942

9913460830

9913460884

9915960183

9921760509

                                      19.
<PAGE>   48

                                    EXHIBIT C

                                     FORM OF
                              AMENDED AND RESTATED
                          CERTIFICATE OF INCORPORATION
                                       OF
                           REPEATER TECHNOLOGIES, INC.

        Kenneth L. Kenitzer hereby certifies that:

        ONE: The date of filing of the original Certificate of Incorporation of
this corporation with the Secretary of State of the State of Delaware was
February 11, 2000.

        TWO: He is the duly elected and acting President of Repeater
Technologies, Inc., a Delaware corporation.

        THREE: The Certificate of Incorporation of this corporation is hereby
amended and restated to read as follows:

                                       I.

The name of this corporation is REPEATER TECHNOLOGIES, INC.

                                       II.

The address of the registered office of the corporation in the State of Delaware
is 9 East Lockerman Street, City of Dover, County of Kent, and the name of the
registered agent of the corporation in the State of Delaware at such address is
National Registered Agents, Inc.

                                      III.

The purpose of this corporation is to engage in any lawful act or activity for
which a corporation may be organized under the General Corporation Law of the
State of Delaware.

                                       IV.

        A. The total number of shares of all classes of stock which the
corporation shall have authority to issue is ninety million (90,000,000) shares,
consisting of seventy million (70,000,000) shares of Common Stock (the "Common")
and twenty million (20,000,000) shares of Convertible Preferred Stock (the
"Preferred"). The Preferred shall have a par value of one-tenth of one cent
($.001) per share and the Common shall have a par value of one-tenth of one cent
($.001) per share.

        B. The Preferred may be issued from time to time in one or more series.
Except as provided in this Article IV, the Board of Directors is hereby
authorized, within the limitations and restrictions stated in this Certificate
of Incorporation, to fix or alter the dividend rights, dividend rate, conversion
rights, voting rights, rights and terms of redemption (including sinking

<PAGE>   49

fund provisions), the redemption price or prices, the liquidation preferences of
any wholly unissued series of Preferred other than the Series DD Preferred and
Series EE Preferred (as defined herein), and the number of shares constituting
any such series and the designation thereof, or any of them; and to increase or
decrease the number of shares of any series subsequent to the issue of shares of
that series, but not below the number of shares of such series then outstanding.
In case the number of shares of any series shall be so decreased, the shares
constituting such decrease shall resume the status which they had prior to the
adoption of the resolution originally fixing the number of shares of such
series. One million two hundred twenty-eight thousand four hundred nine
(1,228,409) of the authorized shares of the Preferred are hereby designated
"Series AA Preferred" (the "Series AA Preferred"); five million eighty-one
thousand six hundred sixty-eight (5,081,668) of the authorized shares of the
Preferred are hereby designated "Series BB Preferred" (the "Series BB
Preferred"); four million six hundred thousand (4,600,000) of the authorized
shares of the Preferred are hereby designated "Series CC Preferred" (the "Series
CC Preferred"); three million three hundred thousand (3,300,000) of the
authorized shares of the Preferred are hereby designated "Series DD Preferred"
(the "Series DD Preferred"); and one million five hundred thousand (1,500,000)
of the authorized shares of the Preferred are hereby designated "Series EE
Preferred" (the "Series EE Preferred").

        C. The relative rights, preferences, privileges and restrictions granted
to or imposed upon the corporation's Common, Series AA Preferred, Series BB
Preferred, Series CC Preferred, Series DD Preferred and Series EE Preferred are
as follows:

SECTION 1. GENERAL DEFINITIONS. For purposes of this Certificate of
Incorporation, the following definitions shall apply:

           (a) "PREFERRED" shall refer collectively to the Series AA Preferred,
Series BB Preferred, Series CC Preferred, Series DD Preferred and Series EE
Preferred.

           (b) "COMMON" shall mean all Common Stock.

           (c) "BOARD" or "BOARD OF DIRECTORS" shall mean the Board of Directors
of the corporation.

        SECTION 2. DIVIDEND RIGHTS OF PREFERRED. The holders of the Preferred
shall be entitled to receive pari passu, out of any funds legally available
therefor, dividends, when, if and as declared by the Board of Directors, at the
rate of $0.51 per annum on each outstanding share of Series AA Preferred
(appropriately adjusted for any combinations, consolidations, stock
distributions, stock dividends or similar events with respect to such shares
after the date hereof (a "Recapitalization")), $0.264 per annum on each
outstanding share of Series BB Preferred (appropriately adjusted for any
Recapitalization), $0.275 per annum on each outstanding share of Series CC
Preferred (appropriately adjusted for any Recapitalization), $0.55 per annum on
each outstanding share of Series DD Preferred (appropriately adjusted for any
Recapitalization), $0.80 per annum on each outstanding share of Series EE
Preferred (appropriately adjusted for any Recapitalization), payable in
preference and priority to any payment of any dividend on Common, when and as
declared by the Board of Directors. After payment of such dividends, any
additional dividends declared shall be distributed among all holders of
Preferred and all holders of Common in proportion to the number of shares of
Common which would be held by

                                       2.
<PAGE>   50

each such holder if all shares of Preferred were converted into Common at the
then effective Conversion Price (as defined in Section 4(a) below). The right to
such dividends on the Preferred shall not be cumulative, and no right shall
accrue to holders of Preferred by reason of the fact that dividends on such
shares are not declared or paid in any prior year.

In the event that the corporation shall have declared but unpaid dividends
outstanding immediately prior to, and in the event of, a conversion of Preferred
(as provided in Section 4 hereof), the corporation shall, at the option of the
holder, pay in cash to the holder(s) of Preferred subject to conversion the full
amount of any such dividends or allow such dividends to be converted into Common
in accordance with, and pursuant to the terms specified in, Section 4 hereof.

        SECTION 3. LIQUIDATION PREFERENCE.

           (a) In the event of any liquidation, dissolution or winding up of the
corporation, either voluntary or involuntary, and until all preferential amounts
owed to them under this Section 3(a) have been paid, the holders of the
Preferred shall be entitled to receive pari passu, prior and in preference to
any distribution of any asset or property of the corporation to the holders of
Common by reason of their ownership thereof, an amount per share equal to $5.10
(Five Dollars and Ten Cents), $2.64 (Two Dollars and Sixty-Four Cents), $2.75
(Two Dollars and Seventy-Five Cents), $5.50 (Five Dollars and Fifty Cents) and
$8.00 (Eight Dollars) for each share of Series AA Preferred, Series BB
Preferred, Series CC Preferred, Series DD Preferred and Series EE Preferred then
held by them, respectively, plus an amount equal to all declared but unpaid
dividends on the Series AA Preferred, Series BB Preferred, Series CC Preferred,
Series DD Preferred and Series EE Preferred as of the liquidation date (each as
adjusted for stock splits, combinations and similar events with respect to the
Series AA Preferred, Series BB Preferred, Series CC Preferred, Series DD
Preferred or Series EE Preferred). If upon the occurrence of such an event, the
assets and funds thus distributed among the holders of the Preferred shall be
insufficient to permit the payment to such holders of the full aforesaid
preferential amount, then all of the assets and funds of the corporation legally
available for distribution shall be distributed among the holders of the
Preferred in proportion to the liquidation preference of the shares of Preferred
then held by them.

           (b) After the payment of the full liquidation preference of the
Preferred as set forth in Section 3(a) above, the entire remaining assets of the
corporation legally available for distribution, if any, shall be distributed
ratably to the holders of the Common, Series CC Preferred, Series DD Preferred
and Series EE Preferred (on an as-if-converted to Common basis).

           (c) For purposes of this Section 3, a liquidation, dissolution or
winding up of the corporation shall be deemed to be occasioned by, and to
include, the corporation's sale of all or substantially all of its assets or the
acquisition of the corporation by another entity by means of merger or
consolidation (other than a consolidation or merger in which the holders of
voting securities of the corporation immediately before the consolidation or
merger own (immediately after the consolidation or merger) voting securities of
the surviving or acquiring corporation, or of a parent party of such surviving
or acquiring corporation, possessing more than fifty percent (50%) of the voting
power of the surviving or acquiring corporation or parent party) resulting in

                                       3.
<PAGE>   51

the exchange of the outstanding shares of the corporation for securities or
consideration issued, or caused to be issued, by the acquiring corporation or
its subsidiary or its parent.

        SECTION 4. CONVERSION. THE HOLDERS OF THE PREFERRED SHALL HAVE
CONVERSION RIGHTS AS FOLLOWS (THE "CONVERSION RIGHTS"):

           (a) RIGHT TO CONVERT. Each share of Preferred shall be convertible,
at the option of the holder thereof, at any time into such number of fully paid
and nonassessable shares of Common as is determined by dividing, with respect to
the Series AA Preferred, $5.10, with respect to the Series BB Preferred, $2.64,
with respect to the Series CC Preferred, $2.75, with respect to the Series DD
Preferred, $5.50, and with respect to the Series EE Preferred, $8.00, by each
series' respective Conversion Price in effect as of the time of conversion. The
conversion price for the Series AA Preferred (the "Series AA Conversion Price")
shall initially be $4.26, the conversion price for the Series BB Preferred (the
"Series BB Conversion Price") shall initially be $2.64, the conversion price for
the Series CC Preferred (the "Series CC Conversion Price") shall initially be
$2.75 the conversion price for the Series DD Preferred (the "Series DD
Conversion Price") shall initially be $5.50 and the Conversion Price for the
Series EE Preferred ("the Series EE Conversion Price") shall initially be $8.00
(collectively with the Series AA Conversion Price, Series BB Conversion Price,
Series CC Conversion Price, the Series DD Conversion Price, and the Series EE
Conversion Price, the "Conversion Prices"). Such initial Conversion Prices shall
be subject to adjustment as hereinafter provided.

           (b) AUTOMATIC CONVERSION. Each share of Series AA Preferred, Series
BB Preferred, Series CC Preferred, Series DD Preferred and Series EE Preferred
shall automatically be converted into shares of Common at the then effective
conversion rate and taking into account declared but unpaid dividends, upon the
affirmative vote of the holders of (i) a majority of the shares of the Series AA
Preferred (with respect to the conversion of the Series AA Preferred), (ii) a
majority of the shares of the Series BB Preferred (with respect to the
conversion of the Series BB Preferred), (iii) at least 66-2/3% of the shares of
the Series CC Preferred (with respect to the conversion of the Series CC
Preferred), (iv) a majority of the authorized shares of the Series DD Preferred
(with respect to the conversion of the Series DD Preferred), or (v) a majority
of the authorized shares of the Series EE Preferred (with respect to the
conversion of the Series EE Preferred) or immediately upon the closing of a firm
commitment underwritten public offering of shares of Common pursuant to an
effective registration statement under the Securities Act of 1933, as amended,
covering the offer and sale of Common of the corporation for the account of the
corporation to the public for an aggregate offering price of not less than
$10,000,000 (before deduction for underwriter commissions and expenses relating
to the issuance) and at a public offering price per share of at least $6.50 (as
adjusted for any Recapitalization) (a "Qualified Public Offering").

           (c) MECHANICS OF CONVERSION. Before any holder of Preferred shall be
entitled to convert the same into full shares of Common, he shall surrender the
certificate or certificates therefor, duly endorsed, at the office of the
corporation or of any transfer agent for the Preferred, and shall give written
notice to the corporation at such office that he elects to convert the same.
Such notice shall also state whether the holder elects, pursuant to Section 2
hereof, to receive declared but unpaid dividends on the Preferred proposed to be
converted in cash, or to convert such dividends into shares of Common at their
fair market value as

                                       4.
<PAGE>   52

determined by the Board. The corporation shall, as soon as practicable
thereafter, issue and deliver at such office to such holder of Preferred, a
certificate or certificates for the number of shares of Common to which he shall
be entitled as aforesaid and a check payable to the holder in the amount of any
cash amounts payable as the result of a conversion into a fractional share of
Common, and any declared but unpaid dividends on the converted Preferred which
the holder elected to receive in cash. Such conversion shall be deemed to have
been made immediately prior to the close of business on the date of such
surrender of the shares of Preferred to be converted, and the person or persons
entitled to receive the shares of Common issuable upon such conversion shall be
treated for all purposes as the record holder or holders of such shares of
Common on such date. If the conversion is in connection with an underwritten
public offering of securities registered pursuant to the Securities Act of 1933,
as amended, the conversion shall be conditioned upon the closing of such public
offering, and the person(s) entitled to receive the Common issuable upon such
conversion of the Preferred shall not be deemed to have converted such Preferred
until immediately prior to such closing.

           (d) ADJUSTMENTS TO SERIES AA, SERIES BB, SERIES CC, SERIES DD AND
SERIES EE CONVERSION PRICE FOR DILUTING ISSUES.

               (1) SPECIAL DEFINITIONS. For purposes of this Section 4(d), the
following definitions shall apply:

                   (a) "OPTIONS" shall mean rights, options, or warrants to
subscribe for, purchase or otherwise acquire either Common or Convertible
Securities.

                   (b) "ORIGINAL ISSUE DATE" shall mean, with respect to a
series of Preferred, the date on which a share of Series AA Preferred, Series BB
Preferred, Series CC Preferred, Series DD Preferred and Series EE Preferred was
first issued, which, in the case of the Series DD Preferred or Series EE
Preferred, shall be deemed to be the date on which a security convertible into
Series DD Preferred or Series EE Preferred was issued, respectively.

                   (c) "CONVERTIBLE SECURITIES" shall mean any evidences of
indebtedness, shares (other than Series AA Preferred, Series BB Preferred,
Series CC Preferred, Series DD Preferred, or Series EE Preferred) or other
securities convertible into or exchangeable for Common.

                   (d) "ADDITIONAL SHARES OF COMMON" shall mean all shares of
Common issued (or, pursuant to Section 4(d)(3), deemed to be issued) by the
corporation after the Original Issue Date, other than shares of Series EE
Preferred and securities convertible into Series EE Preferred and other shares
of Common issued or issuable:

                        (i) upon conversion of shares of Series AA Preferred,
Series BB Preferred, Series CC Preferred, Series DD Preferred and Series EE
Preferred;

                        (ii) to officers, directors or employees of, or
consultants to, the corporation pursuant to stock option or stock purchase plans
approved by the Board of Directors;

                                       5.
<PAGE>   53

                        (iii) as a dividend or distribution on any of the Series
AA Preferred, Series BB Preferred, Series CC Preferred, Series DD Preferred or
Series EE Preferred;

                        (iv) for which adjustment of the Conversion Price is
made pursuant to Section 4(e)(1);

                        (v) in connection with warrants issued as part of any
debt or lease financing transaction approved by the Board of Directors of the
corporation;

                        (vi) in connection with the exercise of warrants; or

                        (vii) by way of dividend or other distribution on shares
excluded from the definition of Additional Shares of Common by the foregoing
clauses (i), (ii), (iii), (iv), (v), (vi) or this clause (vii).

               (2) NO ADJUSTMENT OF CONVERSION PRICE. No adjustment in the
Series AA Conversion Price, Series BB Conversion Price, Series CC Conversion
Price or Series DD Conversion Price of a particular share of Series AA
Preferred, Series BB Preferred, Series CC Preferred, Series DD Preferred or
Series EE Preferred, respectively, shall be made in respect of the issuance of
Additional Shares of Common unless the consideration per share for an Additional
Share of Common issued or deemed to be issued by the corporation is less than
the Series AA Conversion Price, Series BB Conversion Price, Series CC Conversion
Price, Series DD Conversion Price or Series EE Preferred, as the case may be, in
effect on the date of, and immediately prior to such issue, for such share of
Series AA Preferred, Series BB Preferred, Series CC Preferred, Series DD
Preferred or Series EE Preferred.

               (3) DEEMED ISSUE OF ADDITIONAL SHARES OF COMMON. In the event the
corporation at any time or from time to time after the Original Issue Date shall
issue any Options or Convertible Securities or shall fix a record date for the
determination of holders of any class of securities then entitled to receive any
such Options or Convertible Securities, then the maximum number of Additional
Shares of Common (as set forth in the instrument relating thereto without regard
to any provisions contained therein designed to protect against dilution)
issuable upon the exercise of such Options or, in the case of Convertible
Securities and Options therefor, the conversion or exchange of such Convertible
Securities, shall be deemed to be Additional Shares of Common issued as of the
time of such issue or, in case such a record date shall have been fixed, as of
the close of business on such record date, provided that Additional Shares of
Common shall not be deemed to have been issued unless the consideration per
share (determined pursuant to Section 4(d)(5) hereof) of such Additional Shares
of Common would be less than the Series AA Conversion Price, Series BB
Conversion Price, Series CC Conversion Price, Series DD Conversion Price or
Series EE Conversion Price, as the case may be, in effect on the date of and
immediately prior to such issue, or such record date, as the case may be, and
provided further that in any such case in which Additional Shares of Common are
deemed to be issued:

                   (a) no further adjustments in the Series AA Conversion Price,
Series BB Conversion Price, Series CC Conversion Price, Series DD Conversion
Price or Series

                                       6.
<PAGE>   54

EE Preferred shall be made upon the subsequent issue of Convertible Securities
or shares of Common upon the exercise of such Options or conversion or exchange
of such Convertible Securities;

                   (b) if such Options or Convertible Securities by their terms
provide, with the passage of time or otherwise, for any increase in the
consideration payable to the corporation, or decrease in the number of shares of
Common issuable, upon the exercise, conversion or exchange thereof, the Series
AA Conversion Price, Series BB Conversion Price, Series CC Conversion Price,
Series DD Conversion Price or Series EE Preferred computed upon the original
issue thereof (or upon the occurrence of a record date with respect thereto),
and any subsequent adjustments based thereon, shall, upon any such increase or
decrease becoming effective, be recomputed to reflect such increase or decrease
insofar as it affects such Options or the rights of conversion or exchange under
such Convertible Securities (provided, however, that no such adjustment of the
Series AA Conversion Price, Series BB Conversion Price, Series CC Conversion
Price, Series DD Conversion Price or Series EE Conversion Price shall affect
Common previously issued upon conversion of the Preferred);

                   (c) upon the expiration of any such Options or any rights of
conversion or exchange under such Convertible Securities which shall not have
been exercised, the Series AA Conversion Price, Series BB Conversion Price,
Series CC Conversion Price, Series DD Conversion Price or Series EE Conversion
Price computed upon the original issue thereof (or upon the occurrence of a
record date with respect thereto), and any subsequent adjustments based thereon,
shall, upon such expiration, be recomputed as if:

                        (i) in the case of Convertible Securities or Options for
Common the only Additional Shares of Common issued were the shares of Common, if
any, actually issued upon the exercise of such Options or the conversion or
exchange of such Convertible Securities and the consideration received therefor
was the consideration actually received by the corporation for the issue of all
such Options, whether or not exercised, plus the consideration actually received
by the corporation upon such exercise, or for the issue of all such Convertible
Securities which were actually converted or exchanged, plus the additional
consideration, if any, actually received by the corporation upon such conversion
or exchange, and

                        (ii) in the case of Options for Convertible Securities,
only the Convertible Securities, if any, actually issued upon the exercise
thereof were issued at the time of issue of such Options and the consideration
received by the corporation for the Additional Shares of Common deemed to have
been then issued was the consideration actually received by the corporation for
the issue of all such Options, whether or not exercised, plus the consideration
deemed to have been received by the corporation (determined pursuant to Section
4(d)(5)) upon the issue of the Convertible Securities with respect to which such
Options were actually exercised;

                   (d) no readjustment pursuant to clauses (b) or (c) above
shall have the effect of increasing the Series AA Conversion Price, Series BB
Conversion Price, Series CC Conversion Price, Series DD Conversion Price or
Series EE Preferred Conversion Price to an amount which exceeds the lower of (i)
such Conversion Price, as the case may be, on the original

                                       7.
<PAGE>   55

adjustment date, or (ii) such Conversion Price, as the case may be, that would
have resulted from any issuance of Additional Shares of Common between the
original adjustment date and such readjustment date;

                   (e) in the case of any Options which expire by their terms
not more than 30 days after the date of issue thereof, no adjustment of the
Series AA Conversion Priced, Series BB Conversion Price, Series CC Conversion
Price, Series DD Conversion Price, or Series EE Conversion Price shall be made,
except as to shares of Preferred converted in such period, until the expiration
or exercise of all such Options, whereupon such adjustment shall be made in the
same manner provided in clause (c) above; and

                   (f) if any such record date shall have been fixed and such
Options or Convertible Securities are not issued on the date fixed thereof, the
adjustment previously made in the Series AA Conversion Price, Series BB
Conversion Price, Series CC Conversion Price, Series DD Conversion Price or
Series EE Conversion Price which became effective on such record date shall be
canceled as of the close of business on such record date, and shall instead be
made on the actual date of issuance, if any.

               (4) ADJUSTMENT OF CONVERSION PRICE UPON ISSUANCE OF ADDITIONAL
SHARES OF COMMON. In the event the corporation shall issue Additional Shares of
Common (including Additional Shares of Common deemed to be issued pursuant to
Section 4(d)(3)) without consideration or for a consideration per share less
than the Series AA Conversion Price, Series BB Conversion Price, Series CC
Conversion Price, Series DD Conversion Price or Series EE Conversion Price in
effect on the date of and immediately prior to such issue, then and in such
event, such Series AA Conversion Price, Series BB Conversion Price, Series CC
Conversion Price, Series DD Conversion Price or Series EE Conversion Price, as
the case may be, shall be reduced, concurrently with such issue, to a price
(calculated to the nearest cent) determined by multiplying such Series AA
Conversion Price, Series BB Conversion Price, Series CC Conversion Price, Series
DD Conversion Price or Series EE Conversion Price, as the case may be, by a
fraction, the numerator of which shall be the number of shares of Common
outstanding immediately prior to such issuance (including for this purpose the
number of shares of Common issuable upon conversion of the shares of Preferred
outstanding immediately prior to such issue) plus the number of shares of Common
which the aggregate consideration received by the corporation for the total
number of Additional Shares of Common so issued would purchase at such Series AA
Conversion Price, Series BB Conversion Price, Series CC Conversion Price, Series
DD Conversion Price or Series EE Conversion Price, as the case may be, and the
denominator of which shall be the number of shares of Common outstanding
immediately prior to such issuance (including for this purpose the number of
shares of Common issuable upon conversion of the shares of Preferred outstanding
immediately prior to such issue) plus the number of such Additional Shares of
Common so issued.

               (5) DETERMINATION OF CONSIDERATION. For purposes of this Section
4(d), the consideration received by the corporation for the issue of any
Additional Shares of Common shall be computed as follows:

                                       8.
<PAGE>   56

                   (a) CASH AND PROPERTY. Such consideration shall:

                        (i) insofar as it consists of cash, be computed at the
aggregate amount of cash paid therefor, prior to deducting any discounts,
commissions or other expenses allowed, paid or incurred by the corporation but
excluding any amounts paid or payable for accrued interest or accrued dividends;

                        (ii) insofar as it consists of property other than cash,
be computed at the fair value thereof at the time of such issue, as determined
in good faith by the Board of Directors; and

                        (iii) in the event Additional Shares of Common are
issued together with other shares or securities or other assets of the
corporation for consideration which covers both, be the proportion of such
consideration so received, computed as provided in clauses (i) and (ii) above,
as determined in good faith by the Board of Directors.

                   (b) OPTIONS AND CONVERTIBLE SECURITIES. The consideration per
share received by the corporation for Additional Shares of Common deemed to have
been issued pursuant to Section 4(d)(3), relating to Options and Convertible
Securities, shall be determined by dividing:

                        (i) the total amount, if any, received or receivable by
the corporation as consideration for the issue of such Options or Convertible
Securities, plus the minimum aggregate amount of additional consideration (as
set forth in the instruments relating thereto, without regard to any provision
contained therein designed to protect against dilution) payable to the
corporation upon the exercise of such Options or the conversion or exchange of
such Convertible Securities, or in the case of Options for Convertible
Securities, the exercise of such Options for Convertible Securities and the
conversion or exchange of such Convertible Securities by

                        (ii) the maximum number of shares of Common (as set
forth in the instruments relating thereto, without regard to any provision
contained therein designed to protect against dilution) issuable upon the
exercise of such Options or the conversion or exchange of such Convertible
Securities.

           (e) CONVERSION PRICE ADJUSTMENTS OF PREFERRED. The Series AA
Conversion Price, Series BB Conversion Price, Series CC Conversion Price, Series
DD Conversion Price and Series EE Conversion Price shall be subject to
adjustment from time to time as follows:

               (1) ADJUSTMENTS FOR COMBINATIONS OR SUBDIVISIONS OF COMMON. In
the event the corporation at any time or from time to time after the Original
Issue Date shall declare or pay any dividend on the Common payable in Common or
in any right to acquire Common, or shall effect a subdivision of the outstanding
shares of Common into a greater number of shares of Common (by stock split,
reclassification or otherwise), or in the event the outstanding shares of Common
shall be combined or consolidated, by reclassification or otherwise, into a
lesser number of shares of Common, then the Conversion Prices of the Preferred
in effect immediately

                                       9.
<PAGE>   57

prior to such event shall, concurrently with the effectiveness of such event, be
proportionately decreased or increased, as appropriate.

               (2) OTHER DISTRIBUTIONS. In the event the corporation shall at
any time or from time to time after the Original Issue Date make or issue, or
fix a record date for the determination of holders of Common entitled to
receive, a dividend or other distribution payable in securities of the
corporation or any of it subsidiaries other than Additional Shares of Common,
then in each such event provision shall be made so that the holders of Preferred
shall receive, upon the conversion thereof, the securities of the corporation
which they would have received had their stock been converted into Common on the
date of such event.

               (3) ADJUSTMENTS. After the Original Issuance Date, in case of any
reorganization or any reclassification of the capital stock of the corporation,
or, subject to Section 3(c) above, which shall control in the circumstances
specified therein, any consolidation or merger of the corporation with or into
another corporation or corporations, or the conveyance of all or substantially
all of the assets of the corporation to another corporation, each share of
Preferred shall thereafter be convertible into the number of shares of stock or
other securities or property (including cash) to which a holder of the number of
shares of Common deliverable upon conversion of such share of Preferred would
have been entitled upon the record date of (or date of, if no record date is
fixed) such reorganization, reclassification, consolidation, merger or
conveyance; and, in any case, appropriate adjustment (as determined by the Board
of Directors) shall be made in the application of the provisions herein set
forth with respect to the rights and interests thereafter of the holders of such
Preferred, to the end that the provisions set forth herein shall thereafter be
applicable, as nearly as equivalent as is practicable, in relation to any shares
of stock or the securities or property (including cash) thereafter deliverable
upon the conversion of the shares of such Preferred.

           (f) NO IMPAIRMENT. The corporation will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the corporation, but will at
all times in good faith assist in the carrying out of all the provisions of this
Section 4 and in the taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of the holders of the
Preferred against impairment.

           (g) CERTIFICATES AS TO ADJUSTMENTS. Upon the occurrence of each
adjustment or readjustment of the Series AA Conversion Price, Series BB
Conversion Price, Series CC Conversion Price, Series DD Conversion Price or
Series EE Conversion Price pursuant to this Section 4, the corporation at its
expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to each holder of Preferred a certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The corporation shall, upon
the written request at any time of any holder of Preferred, furnish or cause to
be furnished to such holder a like certificate setting forth (i) such
adjustments and readjustments, (ii) the applicable Conversion Price at the time
in effect and (iii) the number of shares of Common and the amount, if any, of
other property which at the time would be received upon the conversion of
Preferred.

                                      10.
<PAGE>   58

           (h) NOTICES OF RECORD DATE. In the event that the corporation shall
propose at any time:

               (1) to declare any Common dividend or distribution, whether in
cash, property, stock or other securities, whether or not a regular cash
dividend and whether or not out of earnings or earned surplus;

               (2) to offer for subscription pro rata to the holders of any
class or series of its stock any additional shares of stock of any class or
series or other rights;

               (3) to effect any reclassification or recapitalization of
outstanding shares of its Common which involve a change in the Common; or

               (4) to merge or consolidate with or into any other corporation,
or sell, lease or convey all or substantially all its property or business, or
to liquidate, dissolve or wind up; then, in connection with each such event, the
corporation shall send to the holders of the Preferred:

                   (a) at least 20 days' prior written notice of the record date
for such dividend, distribution or subscription rights (and specifying the date
on which the holders of shares of Common shall be entitled thereto) or for
determining rights to vote in respect of the matters referred to in subsections
4(h)(iii) and (iv) above; and

                   (b) in the case of the matters referred to in subsections
4(h)(iii) and (iv) above, at least 20 days' prior written notice of the date
when the same shall take place (and specifying the date on which the holders of
shares of Common shall be entitled to exchange their shares of Common for
securities or other property deliverable upon the occurrence of such event).

Each such written notice shall be given by first class mail, postage prepaid,
addressed to the holders of Preferred at the address for each such holder as
shown on the books of the corporation.

           (i) ISSUE TAXES. The corporation shall pay any and all issue and
other taxes, excluding federal, state or local income taxes, that may be payable
in respect of any issue or delivery of shares of Common on conversion of shares
of Preferred pursuant hereto; provided, however, that the corporation shall not
be obligated to pay any transfer taxes resulting from any transfer requested by
any holder in connection with any such conversion.

           (j) RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The corporation
shall at all times reserve and keep available out of its authorized but unissued
shares of Common, solely for the purpose of effecting the conversion of the
shares of the Preferred, such number of its shares of Common as shall from time
to time be sufficient to effect the conversion of all outstanding shares of the
Preferred, and if at any time the number of authorized but unissued shares of
Common shall not be sufficient to effect the conversion of all then outstanding
shares of the Preferred, the corporation will take such corporate action as may,
in the opinion of its counsel, be necessary to increase its authorized but
unissued shares of Common to such number of shares as shall be sufficient for
such purpose, including, without limitation, engaging in best

                                      11.
<PAGE>   59

efforts to obtain the requisite stockholder approval of any necessary amendment
to this Certificate of Incorporation.

           (k) FRACTIONAL SHARES. No fractional share shall be issued upon the
conversion of any share or shares of the Preferred. All shares of Common
(including fractions thereof) issuable upon conversion of more than one share of
Series AA Preferred, Series BB Preferred, Series CC Preferred, Series DD
Preferred or Series EE Preferred by a holder thereof shall be aggregated for
purposes of determining whether the conversion would result in the issuance of
any fractional share. If, after the aforementioned aggregation, the conversion
would result in the issuance of a fraction of a share of Common, the corporation
shall, in lieu of issuing any fractional share, pay the holder otherwise
entitled to such fraction a sum in cash equal to the fair market value of such
fraction on the date of conversion (as determined in good faith by the Board of
Directors of the corporation).

           (l) NOTICES. Any notice required by the provisions of this Section 4
to be given to the holders of shares of Preferred shall be deemed given if
deposited in the United States mail, postage prepaid, and addressed to each
holder of record at its address appearing on the books of the corporation.

        SECTION 5. VOTING RIGHTS AND DIRECTORS.

           (a) VOTE OTHER THAN FOR DIRECTORS. Except as otherwise required by
law and as provided in section (b) below with respect to the election of
directors, the holders of Preferred and the holders of Common shall be entitled
to notice of any stockholders' meetings and to vote as a single class upon any
matter submitted to the stockholders for a vote, as follows:

               (1) the holders of Preferred shall have one vote for each full
share of Common into which their respective shares of Preferred would be
convertible on the record date for the vote; and

               (2) the holders of Common have one vote per share of Common.

           (b) VOTING FOR DIRECTORS. The members of the Board of Directors shall
be elected as follows: (i) holders of the Series AA Preferred shall be entitled
to elect one member of the Board of Directors at or pursuant to each meeting or
consent of the corporation's stockholders for the election of directors, and to
remove from office such director and to fill any vacancy caused by the
resignation, death or removal of such director; (ii) holders of the Series BB
Preferred shall be entitled to elect two members of the Board of Directors at or
pursuant to each meeting or consent of the corporation's stockholders for the
election of directors, and to remove from office such directors and to fill any
vacancy caused by the resignation, death or removal of such directors; (iii)
holders of the Series CC Preferred shall be entitled to elect one member of the
Board of Directors at or pursuant to each meeting or consent of the
corporation's stockholders for the election of directors, and to remove from
office such director and to fill any vacancy caused by the resignation, death or
removal of such director, (iv) holders of the Common shall be entitled to elect
two members of the Board of Directors at or pursuant to each meeting or consent
of the corporation's stockholders for the election of directors, and to remove
from office such directors and to fill any vacancy caused by the resignation,
death or removal of

                                      12.
<PAGE>   60

such directors; and (iv) holders of the Common, Series AA Preferred, Series BB
Preferred, Series CC Preferred, Series DD Preferred and Series EE Preferred,
voting together, shall be entitled to elect the balance of directors, if any, at
or pursuant to each meeting or consent of the corporation's stockholders for the
election of directors, and to remove from office such directors and to fill any
vacancy caused by the resignation, death or removal of such directors.

        SECTION 6. COVENANTS.

           (a) In addition to any other rights provided by law, (i) so long as
an aggregate of at least 1,187,500 shares of Series AA Preferred and Series BB
Preferred remain outstanding (appropriately adjusted for any Recapitalization)
the corporation shall not, without first obtaining the affirmative vote or
written consent of the holders of not less than a majority of such outstanding
shares of Series AA Preferred and Series BB Preferred, voting together as a
class, (ii) so long as an aggregate of at least 1,500,000 shares of Series CC
Preferred remain outstanding (appropriately adjusted for any Recapitalization),
the corporation shall not, without first obtaining the affirmative vote or
written consent of the holders of not less than 55% of such outstanding shares
of Series CC Preferred, (iii) so long as an aggregate of at least 900,000 shares
of Series DD Preferred remain outstanding (appropriately adjusted for any
Recapitalization), the corporation shall not, without first obtaining the
affirmative vote or written consent of the holders of not less than 50% of such
outstanding shares of Series DD Preferred and (iv) so long as an aggregate of at
least 250,000 shares of Series EE Preferred remain outstanding (appropriately
adjusted for any Recapitalization), the corporation shall not, without first
obtaining the affirmative vote or written consent of the holders of not less
than 50% of such outstanding shares of Series EE Preferred:

               (1) Any amendment, alteration, or repeal of any provision of the
Certificate of Incorporation or the Bylaws of the corporation (including any
filing of a Certificate of Designation), that affects adversely the voting
powers, preferences, or other special rights or privileges, qualifications,
limitations, or restrictions of the Preferred;

               (2) Any increase or decrease (other than by redemption or
conversion) in the authorized number of shares of Common or Preferred;

               (3) Any authorization or any designation, whether by
reclassification or otherwise, of any new class or series of stock or any other
securities convertible into equity securities of the corporation ranking on a
parity with or senior to the Preferred in right of redemption, liquidation
preference, voting or dividends or any increase in the authorized or designated
number of any such new class or series;

               (4) Any redemption, repurchase, payment of dividends or other
distributions with respect to Common or Preferred (except for acquisitions of
Common by the corporation pursuant to agreements which permit the company to
repurchase such shares upon termination of services to the corporation or in
exercise of the corporation's right of first refusal upon a proposed transfer);

               (5) Any action that results in the payment or declaration of a
dividend on any shares of Common or Preferred; or

                                      13.
<PAGE>   61

               (6) Any voluntary dissolution or liquidation of (or so deemed
pursuant to Section 3(c) above) the corporation.

        SECTION 7. STATUS OF CONVERTED STOCK. In the event any shares of
Preferred shall be converted pursuant to Section 4 hereof, the shares so
converted shall be canceled and shall not be issuable by the corporation.

        SECTION 8. RESIDUAL RIGHTS. All rights accruing to the outstanding
shares of the corporation not expressly provided for to the contrary herein
shall be vested in the Common.

        SECTION 9. CONSENT FOR CERTAIN REPURCHASES OF COMMON DEEMED TO BE
DISTRIBUTIONS. Each holder of Preferred shall be deemed to have consented, for
purposes of Section 502, 503 and 506 of the California Corporations Code, to
distributions made by the corporation in connection with the repurchase of
shares of Common issued to or held by employees or consultants upon termination
of their employment or services or pursuant to agreements providing for the
right of said repurchase between the corporation and such persons.

                                       V.

        For the management of the business and for the conduct of the affairs of
the corporation, and in further definition, limitation and regulation of the
powers of the corporation, of its directors and of its stockholders or any class
thereof, as the case may be, it is further provided that:

        A. The management of the business and the conduct of the affairs of the
corporation shall be vested in its Board of Directors. The number of directors
which shall constitute the whole Board of Directors shall be fixed exclusively
by one or more resolutions adopted by the Board of Directors.

        B. Subject to the rights of the holders of any series of Preferred Stock
to elect additional directors under specified circumstances, following the
closing of the initial public offering pursuant to an effective registration
statement under the Securities Act of 1933, as amended (the "1993 Act"),
covering the offer and sale of Common Stock to the public (the "Initial Public
Offering"), the directors shall be divided into three classes designated as
Class I, Class II and Class III, respectively. Directors shall be assigned to
each class in accordance with a resolution or resolutions adopted by the Board
of Directors. At the first annual meeting of stockholders following the closing
of the Initial Public Offering, the term of office of the Class I directors
shall expire and Class I directors shall be elected for a full term of three
years. At the second annual meeting of stockholders following the Initial Public
Offering, the term of office of the Class II directors shall expire and Class II
directors shall be elected for a full term of three years. At the third annual
meeting of stockholders following the Initial Public Offering, the term of
office of the Class III directors shall expire and Class III directors shall be
elected for a full term of three years. At each succeeding annual meeting of
stockholders, directors shall be elected for a full term of three years to
succeed the directors of the class whose terms expire at such annual meeting.
During such time or times that the corporation is subject to Section 2115(b) of
the California General Corporation Law ("CGCL"), this paragraph B of this
Article V shall become

                                      14.
<PAGE>   62

effective and be applicable only when the corporation is a "listed" corporation
within the meaning of Section 301.5 of the CGCL.

        C. In the event that the corporation is unable to have a classified
board under applicable law, Section 301.5 of the CGCL, paragraph B of this
Article V shall not apply and all directors shall be elected at each annual
meeting of stockholders to hold office until the next annual meeting.

        D. No stockholder entitled to vote at an election for directors may
cumulate votes to which such stockholder is entitled, unless, at the time of
such election, the corporation (i) is subject to Section 2115(b) of the CGCL and
(ii) is not or ceases to be a "listed" corporation under Section 301.5 of the
CGCL. During this time, every stockholder entitled to vote at an election for
directors may cumulate such stockholder's votes and give one candidate a number
of votes equal to the number of directors to be elected multiplied by the number
of votes to which such stockholder's shares are otherwise entitled, or
distribute the stockholder's votes on the same principle among as many
candidates as such stockholder thinks fit. No stockholder, however, shall be
entitled to so cumulate such stockholder's votes unless (i) the names of such
candidate or candidates have been placed in nomination prior to the voting and
(ii) the stockholder has given notice at the meeting, prior to the voting, of
such stockholder's intention to cumulate such stockholder's votes. If any
stockholder has given proper notice to cumulate votes, all stockholders may
cumulate their votes for any candidates who have been properly placed in
nomination. Under cumulative voting, the candidates receiving the highest number
of votes, up to the number of directors to be elected, are elected.

Notwithstanding the foregoing provisions of this section, each director shall
serve until his successor is duly elected and qualified or until his death,
resignation or removal. No decrease in the number of directors constituting the
Board of Directors shall shorten the term of any incumbent director.

        E. REMOVAL OF DIRECTORS

        SECTION 1. During such time or times that the corporation is subject to
Section 2115(b) of the CGCL, the Board of Directors or any individual director
may be removed from office at any time without cause by the affirmative vote of
the holders of at least a majority of the outstanding shares entitled to vote on
such removal; provided, however, that unless the entire Board is removed, no
individual director may be removed when the votes cast against such director's
removal, or not consenting in writing to such removal, would be sufficient to
elect that director if voted cumulatively at an election which the same total
number of votes were cast (or, if such action is taken by written consent, all
shares entitled to vote were voted) and the entire number of directors
authorized at the time of such director's most recent election were then being
elected.

        SECTION 2. At any time or times that the corporation is not subject to
Section 2115(b) of the CGCL and subject to any limitations imposed by law,
Section 1 shall no longer apply and removal shall be as provided in Section
141(k) of the DGCL.

                                      15.
<PAGE>   63

        F. VACANCIES

        SECTION 1. Subject to the rights of the holders of any series of
Preferred Stock, any vacancies on the Board of Directors resulting from death,
resignation, disqualification, removal or other causes and any newly created
directorships resulting from any increase in the number of directors, shall,
unless the Board of Directors determines by resolution that any such vacancies
or newly created directorships shall be filled by the stockholders, except as
otherwise provided by law, be filled only by the affirmative vote of a majority
of the directors then in office, even though less than a quorum of the Board of
Directors, and not by the stockholders. Any director elected in accordance with
the preceding sentence shall hold office for the remainder of the full term of
the director for which the vacancy was created or occurred and until such
director's successor shall have been elected and qualified.

        SECTION 2. If at the time of filling any vacancy or any newly created
directorship, the directors then in office shall constitute less than a majority
of the whole board (as constituted immediately prior to any such increase), the
Delaware Court of Chancery may, upon application of any stockholder or
stockholders holding at least ten percent (10%) of the total number of the
shares at the time outstanding having the right to vote for such directors,
summarily order an election to be held to fill any such vacancies or newly
created directorships, or to replace the directors chosen by the directors then
in offices as aforesaid, which election shall be governed by Section 211 of the
DGCL.

        SECTION 3. At any time or times that the corporation is subject to
Section 2115(b) of the CGCL, if, after the filling of any vacancy by the
directors then in office who have been elected by stockholders shall constitute
less than a majority of the directors then in office, then

           (a) Any holder or holders of an aggregate of five percent (5%) or
more of the total number of shares at the time outstanding having the right to
vote for those directors may call a special meeting of stockholders; or

           (b) The Superior Court of the proper county shall, upon application
of such stockholder or stockholders, summarily order a special meeting of
stockholders, to be held to elect the entire board, all in accordance with
Section 305(c) of the CGCL. The term of office of any director shall terminate
upon that election of a successor.

        G. Subject to paragraph (h) of Section 43 of the Bylaws, the Bylaws may
be altered or amended or new Bylaws adopted by the affirmative vote of at least
sixty-six and two-thirds percent (66-2/3%) of the voting power of all of the
then-outstanding shares of the voting stock of the corporation entitled to vote.
The Board of Directors shall also have the power to adopt, amend, or repeal
Bylaws.

        SECTION 1. The directors of the corporation need not be elected by
written ballot unless the Bylaws so provide.

        SECTION 2. No action shall be taken by the stockholders of the
corporation except at an annual or special meeting of stockholders called in
accordance with the Bylaws or by written consent of stockholders in accordance
with the Bylaws prior to the closing of the Initial Public Offering and
following the closing of the Initial Public Offering no action shall be taken by
the stockholders by written consent.

                                      16.
<PAGE>   64

        SECTION 3. Advance notice of stockholder nominations for the election of
directors and of business to be brought by stockholders before any meeting of
the stockholders of the corporation shall be given in the manner provided in the
Bylaws of the corporation.

                                       VI.

        A. The liability of the directors for monetary damages shall be
eliminated to the fullest extent under applicable law.

        B. This corporation is authorized to provide indemnification of agents
(as defined in Section 317 of the CGCL) for breach of duty to the corporation
and its stockholders through bylaw provisions or through agreements with the
agents, or through stockholder resolutions, or otherwise, in excess of the
indemnification otherwise permitted by Section 317 of the CGCL, subject, at any
time or times the corporation is subject to Section 2115(b), to the limits on
such excess indemnification set forth in Section 204 of the CGCL.

        C. Any repeal or modification of this Article VI shall be prospective
and shall not affect the rights under this Article VI in effect at the time of
the alleged occurrence of any act or omission to act giving rise to liability or
indemnification.

                                      VII.

        A. The corporation reserves the right to amend, alter, change or repeal
any provision contained in this Certificate of Incorporation, in the manner now
or hereafter prescribed by statute, except as provided in paragraph B of this
Article VII, and all rights conferred upon the stockholders herein are granted
subject to this reservation.

        B. Notwithstanding any other provisions of this Certificate of
Incorporation or any provision of law which might otherwise permit a lesser vote
or no vote, but in addition to any affirmative vote of the holders of any
particular class or series of the voting stock required by law, this Certificate
of Incorporation or any Preferred Stock Designation, the affirmative vote of the
holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting
power of all of the then-outstanding shares of the voting stock, voting together
as a single class, shall be required to alter, amend or repeal Articles V, VI,
and VII.

                                     * * * *

        FOUR: This Amended and Restated Certificate of Incorporation has been
duly approved by the Board of Directors of this corporation.

        FIVE: This Amended and Restated Certificate of Incorporation has been
duly adopted in accordance with the provisions of Sections 228, 242 and 245 of
the General Corporation Law of the State of Delaware by the Board of Directors
and the stockholders of the corporation. A majority of the outstanding shares of
Common and Preferred, voting as a single class on an as-converted basis, a
majority of the outstanding shares of Series AA Preferred and Series BB
Preferred, voting together as a class, fifty-five percent (55%) of the
outstanding shares of Series CC Preferred and fifty percent (50%) of the
outstanding shares of Series DD Preferred approved this Amended and Restated
Certificate of Incorporation by written consent in

                                      17.
<PAGE>   65

accordance with Section 228 of the General Corporation Law of the State of
Delaware and written notice of such was given by the corporation in accordance
with said Section 228.

                                      18.
<PAGE>   66

        IN WITNESS WHEREOF, REPEATER TECHNOLOGIES, INC. has caused this Amended
and Restated Certificate of Incorporation to be signed by its President this
_______ day of _______________, 2000.

                                    REPEATER TECHNOLOGIES, INC.

                                    By:
                                       ----------------------------------------
                                       Kenneth L. Kenitzer
                                       President

                                      19.
<PAGE>   67
                                    EXHIBIT D

                                 FORM OF WARRANT

        THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF
ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT
AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS.

                           REPEATER TECHNOLOGIES, INC.

                           WARRANT FOR THE PURCHASE OF
                       SHARES OF SERIES EE PREFERRED STOCK

NO. WEE-<<WarrantNumber>>                                       __________, 2000

        FOR VALUE RECEIVED, REPEATER TECHNOLOGIES, INC., a Delaware corporation
(the "Company"), with its principal office at 1150 Morse Avenue, Sunnyvale, CA
94089-1605, hereby certifies that <<NAME>> or its assigns (the "Holder") is
entitled, subject to the provisions of this Warrant, to purchase from the
Company, at any time prior to the Expiration Date (as defined in Section 11
below), the number of fully paid and nonassessable shares of Series EE Preferred
Stock of the Company equal to twenty percent (20%) of
<<AmountSpelledOut>>Dollars ($<<Amount>>.00) divided by the Conversion Price, at
an exercise price per share equal to eight dollars ($8.00) (the "Exercise
Price"). The initial "Conversion Price" per share shall be $8.00, or, if the
Company has consummated a Qualified Public Offering (as defined in the Company's
Certificate of Incorporation, as may be amended from time to time), the lesser
of $8.00 or the initial "Price to Public" specified in the final prospectus
related thereto. The term "Series EE Preferred" shall mean the aforementioned
Series EE Preferred Stock of the Company or any other equity securities that may
be issued by the Company in addition thereto or in substitution therefor as
provided herein.

        The number of shares of Series EE Preferred to be received upon the
exercise of this Warrant and the price to be paid for a share of Series EE
Preferred are subject to adjustment from time to time as hereinafter set forth.
The shares of Series EE Preferred deliverable upon such exercise, as adjusted
from time to time, are hereinafter sometimes referred to as "Warrant Shares."

        SECTION 1. EXERCISE OF WARRANT. This Warrant may be exercised in whole
or in part on any business day prior to the Expiration Date by presentation and
surrender to the Company at its principal office at the address set forth in the
initial paragraph hereof (or at such other address as the Company may hereafter
notify the Holder in writing) with the Purchase

<PAGE>   68

Form annexed hereto duly executed and accompanied by proper payment of the
Exercise Price in lawful money of the United States of America in the form of a
check, subject to collection, for the number of Warrant Shares specified in the
Purchase Form. If this Warrant should be exercised in part only, the Company
shall, upon surrender of this Warrant, execute and deliver a new Warrant
evidencing the rights of the Holder thereof to purchase the balance of the
Warrant Shares purchasable hereunder. Upon receipt by the Company of this
Warrant and such Purchase Form, together with proper payment of the Exercise
Price, at such office, the Holder shall be deemed to be the holder of record of
the Warrant Shares, notwithstanding that the stock transfer books of the Company
shall then be closed or that certificates representing such Warrant Shares shall
not then be actually delivered to the Holder.

        SECTION 2. NET ISSUE EXERCISE. Notwithstanding any provisions herein to
the contrary, in lieu of exercising this Warrant for cash, the Holder may elect
to receive shares equal to the value (as determined below) of this Warrant (or
the portion thereof being canceled) by surrender of this Warrant at the
principal office of the Company together with notice of such election in which
event the Company shall issue to the Holder a number of shares of Series EE
Preferred computed using the following formula:

                                  X = Y (A - B)
                                      --------
                                           A

                Where   X = the number of shares of Series EE Preferred to be
                        issued to the Holder

                        Y = the number of shares of Series EE Preferred
                        purchasable under the Warrant or, if only a portion of
                        the Warrant is being exercised, the number of shares
                        purchased under the Warrant being canceled (at the date
                        of such calculation)

                        A = the fair market value of one share of the Series EE
                        Preferred (at the date of such calculation)

                        B = Exercise Price (as adjusted to the date of such
                        calculation)

                        For purposes of the above calculation, the fair market
                        value of one share of Series EE Preferred shall be
                        determined by the Company's Board of Directors in good
                        faith; provided, however, that in the event that the
                        warrant is exercised concurrent with an initial public
                        offering of the Company's Common Stock in which the
                        Series EE Preferred is converted to Common Stock, then
                        the price to the public of the Common Stock in such
                        offering shall be used to determine the fair market
                        value and, provided further, that in the event that this
                        warrant becomes exercisable for Common Stock and the
                        Company's Common Stock is publicly traded, the closing
                        price of the Company's stock in the principal market or
                        exchange on which is it traded on the date of exercise
                        (or if not traded on

                                       2.
<PAGE>   69

                        such date, the most recent date on which it was traded)
                        shall be used to determine the fair market value.

        SECTION 3. ISSUANCE OF NEW WARRANT. In the event of any exercise of the
rights represented by this Warrant, certificates for the Warrant Shares so
purchased shall be delivered to the holder hereof as soon as practicable and,
unless this Warrant has been fully exercised or has expired, a new Warrant
representing the portion of the Warrant Shares, if any, with respect to which
this Warrant shall not then have been exercised shall also be issued to the
holder hereof within a reasonable time. Such exercise shall be deemed to have
been made immediately prior to the close of business on the date of surrender of
this Warrant.

        SECTION 4. RESERVATION OF SHARES. The Company hereby agrees that at all
times there shall be reserved for issuance and delivery upon exercise of this
Warrant (i) all shares of Series EE Preferred Stock issuable upon exercise of
this Warrant and (ii) all shares of Common Stock issuable upon the conversion of
such shares of Series EE Preferred Stock. All shares of such Series EE Preferred
Stock shall be duly authorized and, when issued upon such exercise in accordance
with the terms of this Warrant, shall be validly issued, fully paid and
nonassessable.

        SECTION 5. FRACTIONAL INTEREST. The Company will not issue a fractional
share of Series EE Preferred upon exercise of this Warrant. Instead, the Company
will deliver its check for the current fair market value of the fractional
share, as determined in good faith by the Board of Directors of the Company.

        SECTION 6.    ASSIGNMENT OR LOSS OF WARRANT.

        (a) Except as provided in Section 10, the Holder of this Warrant shall
be entitled, without obtaining the consent of the Company, to assign its
interest in this Warrant in whole or in part to any person or persons. Subject
to the provisions of Section 10, upon surrender of this Warrant to the Company
or at the office of its stock transfer agent or warrant agent, with the
Assignment Form annexed hereto duly executed and funds sufficient to pay any
transfer tax, the Company shall, without charge, execute and deliver a new
Warrant or Warrants in the name of the assignee or assignees named in such
instrument of assignment and, if the Holders entire interest is not being
assigned, in the name of the Holder, and this Warrant shall promptly be
canceled.

        (b) Upon receipt of evidence satisfactory to the Company of the loss,
theft, destruction or mutilation of this Warrant, and (in the case of loss,
theft or destruction) of indemnification satisfactory to the Company, and upon
surrender and cancellation of this Warrant, if mutilated, the Company shall
execute and deliver a new Warrant of like tenor and date.

        SECTION 7. RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof,
be entitled to any rights of a shareholder in the Company, either at law or
equity, and the rights of the Holder are limited to those expressed in this
Warrant. Nothing contained in this Warrant shall be construed as conferring upon
the Holder hereof the right to vote or to consent or to receive notice as a
shareholder of the Company on any matters or with respect to any rights
whatsoever as a shareholder of the Company. No dividends or interest shall be
payable or

                                       3.
<PAGE>   70

accrued in respect of this Warrant or the interest represented hereby or the
Warrant Shares purchasable hereunder until, and only to the extent that, this
Warrant shall have been exercised in accordance with its terms.

        SECTION 8. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES. The number
and kind of securities purchasable upon the exercise of the Warrant and the
Exercise Price shall be subject to adjustment from time to time upon the
occurrence of certain events, as follows:

        (a) RECLASSIFICATION OF OUTSTANDING SECURITIES. In case of any
reclassification, change or conversion of securities of the class issuable upon
exercise of this Warrant (other than a change in par value, or from par value to
no par value, or from no par value to par value, or as a result of a subdivision
or combination), the Company shall execute a new Warrant (in form and substance
reasonably satisfactory to the Holder of this Warrant) providing that the Holder
of this Warrant shall have the right to exercise such new Warrant and upon such
exercise to receive, in lieu of each share of Series EE Preferred theretofore
issuable upon exercise of this Warrant, the kind and amount of shares of stock,
other securities, money and property receivable upon such reclassification or
change by a holder of one share of Series EE Preferred. Such new Warrant shall
provide for adjustments that shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Section 8. The provisions of this
subsection (a) shall similarly apply to successive reclassification or changes.

        (b) SUBDIVISIONS OR COMBINATION OF SHARES. If the Company at any time
while this Warrant remains outstanding and unexpired shall subdivide or combine
its Series EE Preferred, the Exercise Price and the number of Warrant Shares
issuable upon exercise hereof shall be proportionately adjusted.

        (c) STOCK DIVIDENDS. If the Company at any time while this Warrant is
outstanding and unexpired shall pay a dividend payable in shares of Series EE
Preferred Stock (except any distribution specifically provided for in the
foregoing subsections (a) and (b)), then the Exercise Price shall be adjusted,
from and after the date of determination of shareholders entitled to receive
such dividend or distribution, to that price determined by multiplying the
Exercise Price in effect immediately prior to such date of determination by a
fraction (a) the numerator of which shall be the total number of shares of
Series EE Preferred Stock outstanding immediately prior to such dividend or
distribution, and (b) the denominator of which shall be the total number of
shares of Series EE Preferred Stock outstanding immediately after such dividend
or distribution and the number of Warrant Shares subject to this Warrant shall
be proportionately adjusted.

        (d) NOTICE OF RECORD DATE. In the event of any taking by the Company of
a record of its shareholders for the purpose of determining shareholders who are
entitled to receive payment of any dividend (other than a cash dividend) or
other distribution, any right to subscribe for, purchase or otherwise acquire
any share of any class or any other securities or property, or to receive any
other right, or for the purpose of determining shareholders who are entitled to
vote in connection with any proposed merger or consolidation of the Company with
or into any other corporation, or any proposed sale, lease or conveyance of all
or substantially all of the assets of the Company, or any proposed liquidation,
dissolution or winding up of the Company, the Company shall mail to the Holder
of this Warrant, at least ten days prior to the date specified

                                       4.
<PAGE>   71

therein, a notice specifying the date on which any such record is to be taken
for the purpose of such dividend, distribution or right, and the amount and
character of such dividend, distribution or right.

        (e) NO ADJUSTMENT UPON EXERCISE OF WARRANTS. No adjustments shall be
made under any Section herein in connection with the issuance of Warrant Shares
upon exercise of the Warrants.

        SECTION 9. OFFICER'S CERTIFICATE. Whenever the Exercise Price shall be
adjusted as required by the provisions of Section 8, the Company shall deliver
an officer's certificate showing the adjusted Exercise Price determined as
herein provided, setting forth in reasonable detail the facts requiring such
adjustment and the manner of computing such adjustment. Each such officer's
certificate shall be signed by the chairman, president or chief financial
officer of the Company.

        SECTION 10. TRANSFER TO COMPLY WITH THE SECURITIES ACT OF 1933. This
Warrant may not be exercised and neither this Warrant nor any of the Warrant
Shares, nor any interest in either, may be sold, assigned, pledged,
hypothecated, encumbered or in any other manner transferred or disposed of, in
whole or in part, except in compliance with applicable United States federal and
state securities or Blue Sky laws and the terms and conditions hereof. Each
Warrant shall bear a legend in substantially the same form as the legend set
forth on the first page of this Warrant. Each certificate for Warrant Shares
issued upon exercise of this Warrant, unless at the time of exercise such
Warrant Shares are acquired pursuant to a registration statement that has been
declared effective under the Act, shall bear a legend substantially in the
following form:

        THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES
        LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
        TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT
        AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS,
        PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE ISSUER OF THESE
        SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
        SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR
        RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
        LAWS.

Any certificate for any Warrant Shares issued at any time in exchange or
substitution for any certificate for any Warrant Shares bearing such legend
(except a new certificate for any Warrant Shares issued after the acquisition of
such Warrant Shares pursuant to a registration statement that has been declared
effective under the Act) shall also bear such legend unless, in the opinion of
counsel for the Company, the Warrant Shares represented thereby need no longer
be subject to the restriction contained herein. The provisions of this Section
10 shall be binding upon all subsequent Holders of certificates for Warrant
Shares bearing the above legend and all subsequent Holders of this Warrant, if
any. In addition in connection with the issuance of this

                                       5.
<PAGE>   72

Warrant, the Holder specifically represents to the Company by acceptance of this
Warrant as follows:

        (a) The Holder is aware of the Company's business affairs and financial
condition, and has acquired information about the Company sufficient to reach an
informed and knowledgeable decision to acquire this Warrant. The Holder is
acquiring this Warrant for its own account for investment purposes only and not
with a view to, or for the resale in connection with, any "distribution" thereof
in violation of the Act.

        (b) The Holder understands that this Warrant has not been registered
under the Act in reliance upon a specific exemption therefrom, which exemption
depends upon, among other things, the bona fide nature of the Holder's
investment intent as expressed herein.

        (c) The Holder further understands that this Warrant must be held
indefinitely unless subsequently registered under the Act and qualified under
any applicable state securities laws, or unless exemptions from registration and
qualification are otherwise available. Moreover, the Holder understands that the
Company is under no obligation to register and qualify this Warrant.

        (d) The Holder is aware of the provisions of Rule 144 promulgated under
the Act, which, in substance, permit limited public resale of "restricted
securities" acquired, directly or indirectly, from the issuer thereof (or from
an affiliate of such issuer), in a non-public offering subject to the
satisfaction of certain conditions, if applicable, including, among other
things: The availability of certain public information about the Company, the
resale occurring not less than one year after the party has purchased and paid
for the securities to be sold; the sale being made through a broker in an
unsolicited "broker's transaction" or in transactions directly with a market
maker (as said term is defined under the Securities Exchange Act of 1934, as
amended) and the amount of securities being sold during any three month period
not exceeding the specified limitations stated therein.

        (e) The Holder further understands that at the time it wishes to sell
this Warrant there may be no public market upon which to make such a sale, and
that, even if such a public market then exits, the Company may not be satisfying
the current public information requirements of Rule 144, and that, in such
event, the Holder may be precluded from selling this Warrant under Rule 144 even
if the two year minimum holding period had been satisfied.

        (f) The Holder further understands that in the event all of the
requirements of Rule 144 are not satisfied, registration under the Act,
compliance with Regulation A, or some other registration exemption will be
required; and that, notwithstanding the fact that Rule 144 is not exclusive, the
staff of the Securities and Exchange Commission (the "SEC") has expressed its
opinion that persons proposing to sell private placement securities other than
in a registered offering and otherwise than pursuant to Rule 144 will have a
substantial burden of proof in establishing that an exemption from registration
is available for such offers or sales, and that such persons and their
respective brokers who participate in such transactions do so at their own risk.

        SECTION 11. EXPIRATION DATE. This Warrant shall expire and shall be
wholly void and have no effect after 5:00 p.m. on the fifth anniversary of the
date hereof.

                                       6.
<PAGE>   73

        SECTION 12. NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF LIABILITY.
Nothing contained in this Warrant shall be construed as conferring upon the
Holder hereof the right to vote or to consent or to receive notice as a
shareholder of the Company or any other matters or any rights whatsoever as a
shareholder of the Company. No dividends or interest shall be payable or accrued
in respect of this Warrant or the interest represented hereby or the shares
purchasable hereunder until, and only to the extent that, this Warrant shall
have been exercised. No provisions hereof, in the absence of affirmative action
by the holder to purchase shares of Series EE Preferred, and no mere enumeration
herein of the rights or privileges of the holder hereof, shall give rise to any
liability of such Holder for the Exercise Price or as a shareholder of the
Company, whether such liability is asserted by the Company or by its creditors.

        SECTION 13. MARKET STANDOFF. The holder of this Warrant, by acceptance
hereof, agrees that such holder will not, without the prior written consent of
the lead underwriter of the initial public offering of the Common Stock of the
Company pursuant to a registration statement filed under the Act (the
"Offering"), directly or indirectly offer to sell, contract to sell (including,
without limitation, any short sale), grant any option for the sale of, acquire
any option to dispose of, or otherwise dispose of any Warrant Shares for a
period of 180 days following the day on which the registration statement filed
on behalf of the Company in connection with the Offering shall become effective
by order of the SEC.

        SECTION 14. GOVERNING LAW. This Warrant is delivered in the State of
California and shall be construed in accordance with and governed by the laws of
that State.

        SECTION 15. MODIFICATION AND WAIVER. Neither this Warrant nor any term
hereof may be amended, waived, discharged or terminated other than by an
instrument in writing signed by the Company and by the Holder hereof.

        SECTION 16. NOTICES. Any notice, request or other document required or
permitted to be given or delivered to the Holder hereof or the Company shall be
delivered or shall be sent by certified mail, postage prepaid, to each such
Holder at its address as shown on the books of the Company or to the Company at
the address indicated therefor in the first paragraph of this Warrant.

        SECTION 17. DESCRIPTIVE HEADINGS AND GOVERNING LAW. The description
headings of the several sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. This Warrant
shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the laws of the State of California.

        SECTION 18. ENTIRE AGREEMENT. This Warrant constitutes the entire
agreement between the parties pertaining to the subject matter herein and
supersedes all prior and contemporaneous agreements, representation and
undertakings of the parties.

                                       7.
<PAGE>   74

        IN WITNESS WHEREOF, the Company has duly caused this Warrant to be
signed by its duly authorized officer and to be dated as of _________________,
2000.

                                    REPEATER TECHNOLOGIES, INC.

                                    BY:
                                           -------------------------------------
                                           Ken Kenitzer,
                                           President and Chief Executive Officer

                                       8.
<PAGE>   75

                                  PURCHASE FORM

                                                   Dated ___________, ____

        The undersigned hereby irrevocably elects to exercise Warrant WEE-_____
(the "Warrant") to purchase _______ shares of Series EE Preferred Stock of
REPEATER TECHNOLOGIES, INC. and hereby makes payment of ___________________ in
payment of the exercise price thereof.

                                       or

        The undersigned hereby elects to convert ____ percent (__%) of the value
of the Warrant pursuant to the provisions of Section 2 of the Warrant.

                                                   Signature____________________

                                       9.
<PAGE>   76

                                 ASSIGNMENT FORM

                                                   Dated _________, ____

        FOR VALUE RECEIVED, ________________________________ hereby sells,
assigns and transfers unto __________________________________________________
(the "Assignee"), (please type or print in block letters)

--------------------------------------------------------------------------------
                                (insert address)

its right to purchase up to ____ shares of Series EE Preferred Stock of REPEATER
TECHNOLOGIES, INC. represented by this Warrant and does hereby irrevocably
constitute and appoint ____________________________ Attorney, to transfer the
same on the books of the Company, with full power of substitution in the
premises.

                                                   Signature____________________

                                      10.
<PAGE>   77

                                    EXHIBIT E

                                     FORM OF
            SEVENTH AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>   78
<TABLE>
<CAPTION>
                               TABLE OF CONTENTS
<S>     <C>    <C>                                                                           <C>
I.      DEFINITIONS..........................................................................1

        1.1    "Restricted Securities".......................................................1

        1.2    "Registrable Securities"......................................................1

        1.3    The terms "register," "registered" and "registration".........................1

        1.4    "Registration Expenses".......................................................2

        1.5    "Selling Expenses"............................................................2

        1.6    "Holder"......................................................................2

        1.7    "Preferred Stock".............................................................2

II.     AMENDMENT AND RESTATEMENT OF PRIOR INVESTORS' RIGHTS AGREEMENT.......................2

III.    REGISTRATION; RESTRICTIONS ON TRANSFER...............................................2

        3.1    Restrictions on Transferability...............................................2

        3.2    Restrictive Legend............................................................2

        3.3    Notice of Proposed Transfers..................................................3

        3.4    Requested Registration........................................................3

        3.5    Company Registration..........................................................5

        3.6    Expenses of Registration......................................................6

        3.7    Registration Procedures.......................................................6

        3.8    Registration on Form S-3......................................................7

        3.9    Termination of Registration Rights............................................7

        3.10   Lockup Agreement..............................................................7

        3.11   Indemnification...............................................................7

        3.12   Information by Holder.........................................................9

        3.13   Rule 144 Reporting............................................................9

        3.14   Transfer of Registration Rights..............................................10

IV.     COVENANTS OF THE COMPANY............................................................10

        4.1    Annual Financial Information.................................................10

        4.2    Inspection...................................................................10

        4.3    Assignment of Rights to Financial Information................................10

        4.4    Proprietary Information and Non-Competition Agreements.......................10

        4.5    Confidentiality Agreement....................................................11
</TABLE>

                                       i.
<PAGE>   79
<TABLE>
<CAPTION>

                               TABLE OF CONTENTS
                                  (CONTINUED)
<S>     <C>    <C>                                                                          <C>

        4.6    Insider Transactions.........................................................11

        4.7    Employee Stock and Option Plans..............................................11

        4.8    Financial Updates to Board...................................................11

        4.9    Termination of Covenants.....................................................11

V.      RIGHTS OF FIRST REFUSAL.............................................................11

        5.1    New Securities...............................................................11

        5.2    Outstanding Securities.......................................................13

VI.     MISCELLANEOUS.......................................................................13

        6.1    Governing Law................................................................13

        6.2    Survival.....................................................................13

        6.3    Successors and Assigns.......................................................14

        6.4    Separability.................................................................14

        6.5    Amendment and Waiver.........................................................14

        6.6    Delays or Omissions..........................................................14

        6.7    Notices, etc.................................................................15

        6.8    Attorneys' Fees..............................................................15

        6.9    No Investment Obligation.....................................................15

        6.10   Aggregation and Affiliate Status.............................................15

        6.11   Entire Agreement.............................................................15

        6.12   Titles and Subtitles.........................................................15

        6.13   Counterparts.................................................................15
</TABLE>

                                      ii.
<PAGE>   80
                           REPEATER TECHNOLOGIES, INC.

        THIS SEVENTH AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT (the
"Agreement") is entered into as of _______________, 2000, by and among REPEATER
TECHNOLOGIES, INC., a Delaware corporation (the "Company"), and those purchasers
of the Company's securities set forth on Exhibit A hereto (the "Purchasers").

                                 I. DEFINITIONS

        1.1 "RESTRICTED SECURITIES" shall mean the securities of the Company
required to bear the legend set forth in Section 3.2 hereof (or any similar
legend).

        1.2 "REGISTRABLE SECURITIES" shall mean (i) shares of the Company's
Common Stock issued or issuable pursuant to the conversion of the Company's
Series A Preferred Stock (the "Series A Stock"), Series B Preferred Stock (the
"Series B Stock"), Series C Preferred Stock (the "Series C Stock"), Series D
Preferred Stock (the "Series D Stock"), Series E Preferred Stock (the "Series E
Stock"), Series AA Preferred Stock (the "Series AA Stock"), Series BB Preferred
Stock (the "Series BB Stock"), Series CC Preferred Stock (the "Series CC
Stock"), Series DD Preferred Stock (the "Series DD Stock") and Series EE
Preferred Stock (the "Series EE Stock"), (ii) shares of the Company's Common
Stock issued or issuable upon exercise of the Warrants granted in connection
with the Company's interim financings in 1985, 1986 and 1990 (the "Prior
Warrants"), (iii) shares of the Company's Common Stock issued upon exercise of
Warrants granted in connection with the Series A Preferred Stock Purchase
Agreements dated April 17, 1987 and November 23, 1988 pursuant to Warrant
Agreements of even date therewith (the "1987 Warrants" and the "1988 Warrants"
respectively), (iv) shares of the Company's Common Stock issued upon exercise of
Warrants granted in 1995 (the "1995 Warrants"), (v) shares of Series BB
Preferred Stock issued upon exercise of Warrants granted in connection with the
Company's 1997 Series BB and Warrant financing (the "1997 Warrants"), (vi)
shares of Series DD Preferred Stock issued or issuable upon conversion of
convertible debentures issued pursuant to the Debenture Purchase Agreement dated
November 25, 1998 (the "Series DD Convertible Debentures"), (vii) shares of the
Company's Common Stock issued or issuable upon conversion of the Series DD
Preferred Stock, (viii) shares of Series EE Preferred Stock issued or issuable
upon conversion of convertible debentures (the "Series EE Convertible
Debentures") issued pursuant to the Convertible Debenture and Warrant Purchase
Agreement dated as of the date hereof (the "Debenture Purchase Agreement"), (ix)
shares of Series EE Preferred Stock issuable upon exercise of warrants issued
pursuant to the Debenture Purchase Agreement ("2000 Warrants"), (x) shares of
the Company's Common Stock issued or issuable upon conversion of the Series EE
Preferred Stock, and (xi) any Common Stock of the Company issued or issuable in
respect of any of such shares upon any stock split, stock dividend,
recapitalization or similar event. References to securities in the foregoing
definitions shall be deemed to include the securities issued by Repeater
Technologies, Inc., a California corporation, as reincorporated in Delaware on
May 18, 2000.

        1.3 THE TERMS "REGISTER," "REGISTERED" AND "REGISTRATION" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act of

                                       1
<PAGE>   81

1933, as amended (the "Securities Act"), and the declaration or ordering of the
effectiveness of such registration statement.

        1.4 "REGISTRATION EXPENSES" shall mean all expenses incurred by the
Company in complying with Sections 3.4, 3.5 and 3.8 hereof, including, without
limitation, all registration, qualification, and filing fees, printing expenses,
escrow fees, fees and disbursements of counsel for the Company, fees and
disbursements of one special counsel for all Holders which shall be the same as
counsel for the Company unless the holders of a majority of the Registrable
Securities of the selling Holders specify otherwise, blue sky fees and expenses,
and the expense of any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the Company
which shall be paid in any event by the Company).

        1.5 "SELLING EXPENSES" shall mean all underwriting discounts, selling
commissions, and stock transfer taxes applicable to the securities registered by
the Holders.

        1.6 "HOLDER" shall mean any holder of Registrable Securities, or any
transferee of such Holder under Section 3.14, which have not been sold to the
public.

        1.7 "PREFERRED STOCK" shall mean shares of the Company's Series A Stock,
Series B Stock, Series C Stock, Series D Stock, Series E Stock, Series AA Stock,
Series BB Stock, Series CC Stock, Series DD Stock and Series EE Stock.

       II. AMENDMENT AND RESTATEMENT OF PRIOR INVESTORS' RIGHTS AGREEMENT

        Effective and contingent upon the first closing of the sale of
Convertible Debentures of the Company pursuant to the Convertible Debenture
Purchase Agreement, that certain Sixth Amended and Restated Investors' Rights
Agreement dated as of November 25, 1998, as amended by Amendment No. 1 to the
Sixth Amended and Restated Investors' Rights Agreement dated July 8, 1999 (the
"Sixth Amended and Restated Investors' Rights Agreement"), by and among the
Company and certain holders of the Company's securities shall be null and void
and superseded by the rights and obligations set forth in this Agreement.

                   III. REGISTRATION; RESTRICTIONS ON TRANSFER

        3.1 RESTRICTIONS ON TRANSFERABILITY. The Registrable Securities shall
not be transferable except upon the conditions specified in this Article III,
which conditions are intended to ensure compliance with the provisions of the

        Securities Act. Each Holder will cause any proposed transferee of
Registrable Securities held by a Holder to agree to take and hold such
securities subject to the provisions and upon the conditions specified in this
Article III.

        3.2 RESTRICTIVE LEGEND. Each certificate representing Preferred Stock or
Registrable Securities shall (unless otherwise permitted by the provisions of
Section 3.3 below) be stamped or otherwise imprinted with a legend in the
following form (in addition to any legend required under applicable state
securities laws):

                                       2
<PAGE>   82

        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
        INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
        1933. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
        SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT OR EXCEPT
        PURSUANT TO RULE 144. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF
        THESE SECURITIES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO
        COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE
        TO THE SECRETARY OF THE CORPORATION AT THE PRINCIPAL EXECUTIVE OFFICES
        OF THE CORPORATION.

        3.3 NOTICE OF PROPOSED TRANSFERS. The holder of each certificate
representing Preferred Stock or Registrable Securities by acceptance thereof
agrees to comply in all respects with the provisions of this Section 3.3. Prior
to any proposed transfer of any Preferred Stock or Registrable Securities,
unless there is in effect a Registration Statement under the Securities Act
covering the proposed transfer, the holder thereof shall give written notice to
the Company of such holder's intention to effect such transfer. Each such notice
shall describe the manner and circumstances of the proposed transfer in
sufficient detail, and shall, if the Company so requests, be accompanied (except
in transactions in compliance with Rule 144) by either (i) an unqualified
written opinion of legal counsel who shall be reasonably satisfactory to the
Company, addressed to the Company and reasonably satisfactory in form and
substance to the Company's counsel, to the effect that the proposed transfer of
the Preferred Stock or Registrable Securities may be effected without
registration under the Securities Act, or (ii) a "No Action" letter from the
Securities and Exchange Commission (the "Commission") to the effect that the
transfer of such securities without registration will not result in a
recommendation by the staff of the Commission that action be taken with respect
thereto, whereupon the holder of such Preferred Stock or Registrable Securities
shall be entitled to transfer such Preferred Stock or Registrable Securities in
accordance with the terms of the notice delivered by the holder to the Company;
provided, however, that no opinion or No Action letter need be obtained with
respect to a transfer to (A) a partner, active or retired, of a Holder, (B) the
estate of any such partner, or (C) an "affiliate" of a Holder, as that term is
defined in Rule 405 promulgated by the Commission under the Securities Act, if
the transferee agrees to be subject to the terms hereof. Each certificate
evidencing the Preferred Stock or Registrable Securities transferred as above
provided shall bear the appropriate restrictive legend set forth in Section 3.2
above, except that such certificate shall not bear such restrictive legend if in
the opinion of counsel for the Company such legend is not required in order to
establish compliance with any provisions of the Securities Act.

        3.4 REQUESTED REGISTRATION.

               (a) REQUEST FOR REGISTRATION. In case the Company shall receive
from any Holder or group of Holders holding at least 35% of the Registrable
Securities a written request that the Company effect any registration,
qualification, or compliance with respect to such Holder's or Holders'
Registrable Securities having an anticipated aggregate offering price of at
least $10,000,000, the Company will:

                                       3
<PAGE>   83

               (i) promptly give written notice of the proposed registration,
qualification, or compliance to all other Holders; and

               (ii) as soon as practicable, use its best efforts to effect such
registration, qualification, or compliance (including, without limitation, the
execution of an undertaking to file post-effective amendments, appropriate
qualification under applicable blue sky or other state securities laws, and
appropriate compliance with applicable regulations promulgated under the
Securities Act and any other governmental requirements or regulations) as may be
so requested and as would permit or facilitate the sale and distribution of all
or such portion of such Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any Holder or
Holders joining in such request as are specified in a written request received
by the Company within 15 days after receipt of such written notice from the
Company; provided, however, that the Company shall not be obligated to take any
action to effect any such registration, qualification, or compliance pursuant to
this Section 3.4:

                      (A) in any particular jurisdiction in which the Company
would be required to execute a general consent to service of process in
effecting such registration, qualification, or compliance unless the Company is
already subject to service in such jurisdiction and except as may be required by
the Securities Act;

                      (B) prior to November 25, 2001, or six months following
the close of the Company's initial underwritten public offering, whichever shall
first occur;

                      (C) after the Company has effected two such registrations
pursuant to this subparagraph 3.4(a), such registrations have been declared or
ordered effective and the securities offered pursuant to such registration have
been sold.

        Subject to the foregoing clauses (A) through (C), the Company shall file
a registration statement covering the Registrable Securities so requested to be
registered as soon as practicable, after receipt of the request or requests of
any Holder or Holders. If, however, the Company shall furnish to the Holder or
Holders requesting a registration statement pursuant to this Section 3.4, a
certificate signed by the President of the Company stating that, in the good
faith judgment of the Board of Directors of the Company, it would be seriously
detrimental to the Company and its shareholders for such registration statement
to be filed and that it is therefore essential to defer the filing of such
registration statement, the Company shall have the right to defer such filing
for a period of not more than 120 days after receipt of the request of the
Holder or Holders requesting such registration; provided, however, that the
Company may not utilize this right more than once in any twelve-month period.

               (b) UNDERWRITING. If the Holders intend to distribute the
Registrable Securities covered by their request by means of an underwriting,
they shall so advise the Company as a part of their request made pursuant to
Section 3.4 and the Company shall include such information in the written notice
referred to in Section 3.4(a)(i). The right of any Holder to registration
pursuant to Section 3.4 shall be conditioned upon such Holder's participation in
such underwriting and the inclusion of such Holder's Registrable Securities in
the underwriting to the

                                       4
<PAGE>   84

extent requested (unless otherwise mutually agreed by a majority in interest of
the Holders) to the extent provided herein.

        The Company shall (together with all Holders proposing to distribute
their securities through such underwriting) enter into an underwriting agreement
in customary form with the managing underwriter selected for such underwriting
by a majority in interest of the Holders requesting registration and reasonably
acceptable to the company. Notwithstanding any other provision of this Section
3.4, if the managing underwriter advises the Holders in writing that the
marketing factors require a limitation of the number of shares to be
underwritten, then, subject to the provisions of Section 3.4(a), shares will be
excluded from such underwriting as follows: securities (other than Registrable
Securities) held by officers or directors of the Company shall first be
excluded; second, if required, all securities (other than Registrable
Securities) shall be excluded on a pro rata basis; and third, if required, the
Registrable Securities requested to be registered under this Section 3.4 shall
be excluded on a pro rata basis. No Registrable Securities excluded from the
underwriting by reason of the managing underwriter's marketing limitation shall
be included in such registration.

        If any Holder of Registrable Securities disapproves of the terms of the
underwriting, such Holder may elect to withdraw therefrom by written notice to
the Company, the managing underwriter, and the other Holders. The Registrable
Securities and/or other securities so withdrawn shall also be withdrawn from
registration; provided, however, that if by the withdrawal of such Registrable
Securities a greater number of Registrable Securities held by other Holders may
be included in such registration (up to the maximum of any limitation imposed by
the underwriters), then, the Company shall offer to all Holders who have
included Registrable Securities in the same proportion used in determining the
underwriter limitation in this Section 3.4(b). If the registration does not
become effective due to the withdrawal of Registrable Securities, then, unless
the withdrawal was due to the discovery by the withdrawing Holder of material
information relating to the registration that was not previously known by such
Holder, either, at the option of a majority of the Holders requesting such
registration, (1) the Holders requesting registration shall reimburse the
Company for expenses incurred in complying with the request or (2) the aborted
registration shall be treated as effected for purposes of Section 3.4(a)(ii)(C).

        3.5 COMPANY REGISTRATION.

               (a) NOTICE OF REGISTRATION. If at any time the Company shall
determine to register any of its securities, either for its own account or the
account of a security holder or holders exercising their respective demand
registration rights, other than (i) a registration relating solely to employee
benefit plans or (ii) a registration relating solely to a Commission Rule 145
transaction, the Company will:

                      (i) promptly give to each Holder of the Company written
notice thereof; and

                      (ii) include in such registration (and any related
qualification under blue sky laws or other compliance), and in any underwriting
involved therein, all the Registrable

                                       5
<PAGE>   85

Securities specified in a written request or requests, made within 15 days after
receipt of such written notice from the Company, by any Holder or Holders.

                      (b) If the registration of which the Company gives notice
is for a registered public offering involving an underwriting, the Company shall
so advise the Holders as a part of the written notice given pursuant to
subsection 3.5(a)(i). In such event the right of any Holder to registration
pursuant to this Section 3.5 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting
shall, together with the Company and the other parties distributing their
securities through such underwriting, enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such
underwriting by the Company. Notwithstanding any other provision of this Section
3.5, if the underwriter shall advise the Company in writing that marketing
factors (including, without limitation, an adverse effect on the per share
offering price) require a limitation of the number of shares to be underwritten,
then shares (other than securities to be sold for the account of the Company),
shall be excluded as follows: securities (other than Registrable Securities) and
second, if required, the Registrable Securities requested to be registered shall
be excluded on a pro rata basis; provided, however, that in connection with any
registration under this Section 3.5, other than the registration pertaining to
the Company's initial public offering of securities, the amount of Registrable
Securities of the selling Holders to be included in the offering shall not be
reduced below 50% of the securities included in such offering. No Registrable
Securities excluded from the underwriting by reason of the managing
underwriter's marketing limitation shall be included in such registration.

        If any Holder disapproves of the terms of the underwriting, it may elect
to withdraw therefrom by written notice to the Company and the underwriter. Any
securities so withdrawn shall also be withdrawn from registration. If by the
withdrawal of such securities a greater number of securities held by other
Holders may be included in such registration (up to the maximum of any
limitation imposed by the underwriters), then the Company shall offer to all
Holders who have included securities in the registration the right to include
additional securities in the same proportion used in determining the underwriter
limitation in this paragraph 3.5(b).

        3.6 EXPENSES OF REGISTRATION. Except as set forth in Section 3.4(b), the
Registration Expenses incurred in connection with (i) registrations pursuant to
Section 3.4, (ii) all registrations pursuant to Section 3.8 below, and (iii) all
registrations pursuant to Section 3.5 shall be borne by the Company. Unless
otherwise stated, all Selling Expenses relating to securities registered by the
Holders shall be borne by the holders of such securities pro rata on the basis
of the number of shares so registered.

        3.7 REGISTRATION PROCEDURES. In the case of each registration,
qualification, or compliance effected by the Company pursuant to this Article
III, the Company will keep each Holder advised in writing as to the initiation
of each registration, qualification, and compliance and as to the completion
thereof. At its expense, the Company will:

                                       6
<PAGE>   86
               (a) Keep such registration, qualification, or compliance
effective for a period of 120 days or until the Holder or Holders have completed
the distribution described in the registration statement relating thereto,
whichever first occurs; and

               (b) Furnish such number of prospectuses and other documents
incident thereto as a Holder from time to time may reasonably request.

        3.8 REGISTRATION ON FORM S-3. In addition to the rights set forth in
Section 3.4, if Holder or Holders of at least 25% of the then outstanding
Registrable Securities of the Company request that the Company file a
registration statement on Form S-3 (or any successor thereto) for a public
offering of shares of such Registrable Securities, the reasonably anticipated
aggregate price to the public of which would exceed $3,000,000, and the Company
is a registrant entitled to use Form S-3 to register securities for such an
offering, the Company shall use its best efforts to cause such shares to be
registered for the offering on such form (or any successor thereto), provided,
however, that the Company shall not be required to effect any such registration
within 180 days of the effective date of any registration statement pertaining
to an underwritten public offering of the Company's securities or if the Company
has, within the 12 month period preceding the date of such request, already
effected a registration on Form S-3 for the Holders pursuant to this Section
3.8.

        3.9 TERMINATION OF REGISTRATION RIGHTS. The registration rights granted
pursuant to this Article III shall terminate as to each Holder at such time as
all Registrable Securities or held by such Holder (including any Common Stock
issued upon conversion of the Preferred Stock of each Holder) can be sold
without compliance with the registration requirements of the Securities Act
pursuant to Rule 144(k).

        3.10 LOCKUP AGREEMENT. In consideration for the Company agreeing to its
obligations under this Article III, each Holder and each transferee pursuant to
Section 3.14 hereof agrees (but only if each Company officer, director and
shareholder beneficially owning 5% or more of the Company's equity securities,
and each shareholder selling shares in such offering, also agrees), in
connection with the initial registration of the Company's securities, upon
request of the Company or the underwriters managing any underwritten offering of
the Company's securities, not to sell, make any short sale of, loan, grant any
option for the purchase of, or otherwise dispose of any Registrable Securities
(other than those included in the registration) without the prior written
consent of the Company or such underwriters, as the case may be, for such period
of time (not to exceed 180 days) from the effective date of such registration as
the Company or the underwriters may specify. The Holders agree that the Company
may instruct its transfer agent to place stop-transfer notations in its records
to enforce the provisions of this Section 3.10.

        3.11 INDEMNIFICATION. The Company will indemnify each Holder, each of
its officers, directors, and partners, and such Holder's legal counsel and
independent accountants, and each person controlling such Holder within the
meaning of Section 15 of the Securities Act, with respect to which registration,
qualification, or compliance has been effected pursuant to this Article III, and
each underwriter, if any, and each person who controls any underwriter within
the meaning of Section 15 of the Securities Act, against all expenses, claims,
losses, damages,

                                       7

<PAGE>   87
and liabilities (or actions in respect thereof), including any of the foregoing
incurred in settlement of any litigation, commenced or threatened, arising out
of or based on any untrue statement (or alleged untrue statement) of a material
fact contained in any registration statement, prospectus, offering circular, or
other document, or any amendment or supplement thereto, incident to any such
registration, qualification, or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading, or any violation by the Company of any rule or
regulation promulgated under the Securities Act or under state securities laws
applicable to the Company and relating to action or inaction required of the
Company in connection with any such registration, qualification, or compliance,
and will reimburse each such Holder, each of its officers, directors, and
partners, and such Holder's legal counsel and independent accountants, and each
person controlling such Holder, each such underwriter, and each person who
controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating, preparing, or defending any such
claim, loss, damage, liability, or action, provided that the Company will not be
liable in any such case to the extent that any such claim, loss, damage,
liability, or expense arises out of or is based on any untrue statement or
omission or alleged untrue statement or omission, made in reliance upon and in
conformity with written information furnished to the Company by an instrument
duly executed by such Holder or underwriter and stated to be specifically for
use therein.

               (a) Each Holder will, if Registrable Securities held by such
Holder are included in the securities as to which such registration,
qualification, or compliance is being effected, severally and not jointly,
indemnify the Company, each of its directors and officers and its legal counsel
and independent accountants, each underwriter, if any, of the Company's
securities covered by such a registration statement, each person who controls
the Company or such underwriter within the meaning of Section 15 of the
Securities Act, and each other such Holder, each of its officers and directors,
and each person controlling such Holder within the meaning of Section 15 of the
Securities Act, against all claims, losses, damages, and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular, or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, such Holders, such directors, officers, legal counsel, independent
accountants, underwriters, or control persons for any legal or any other
expenses reasonably incurred in connection with investigating or defending any
such claim, loss, damage, liability, or action, in each case to the extent, but
only to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is made in such registration statement,
prospectus, offering circular, or other document in reliance upon and in
conformity with written information furnished to the Company by an instrument
duly executed by such Holder and stated to be specifically for use therein;
provided, however, that the obligations of such Holders hereunder shall be
limited to an amount equal to the net proceeds after expenses and commissions to
each such Holder of Registrable Securities sold as contemplated herein.

                                       8

<PAGE>   88
               (b) Each party entitled to indemnification under this Section
3.11 (the "Indemnified Party") shall give notice to the party required to
provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not be
unreasonably withheld), and the Indemnified Party may participate in such
defense at such party's expense, and provided further that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Article III, except to the
extent, but only to the extent, that the Indemnifying Party's ability to defend
against such claim or litigation is impaired as a result of such failure to give
notice. No Indemnifying Party, in the defense of any such claim or litigation,
shall, except with the consent of each Indemnified Party, consent to entry of
any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation.

        3.12 INFORMATION BY HOLDER. Each Holder including securities of the
Company in any registration shall furnish to the Company such information
regarding such Holder and the distribution proposed by such Holder as the
Company may request in writing and as shall be required in connection with any
registration, qualification, or compliance referred to in this Article III.

        3.13 RULE 144 REPORTING. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit the
sale of the Preferred Stock and/or Registrable Securities to the public without
registration, after such time as a public market exists for the Common Stock of
the Company, the Company agrees to:

               (a) Make and keep public information available, as those terms
are understood and defined in Rule 144 under the Securities Act, at all times
after the effective date of the first registration under the Securities Act
filed by the Company for an offering of its securities to the general public;

               (b) Use its best efforts to then file with the Commission in a
timely manner all reports and other documents required of the Company under the
Securities Act and the Securities Exchange Act of 1934, as amended (the
"Exchange Act") (at any time after it has become subject to such reporting
requirements);

               (c) So long as a Holder owns Preferred Stock and/or Registrable
Securities to furnish to the Holder forthwith upon request (i) a written
statement by the Company as to its compliance with the reporting requirements of
Rule 144 (at any time after 90 days after the effective date of the first
registration statement filed by the Company for an offering of its securities to
the general public) and of the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), (ii) a copy of the
most recent annual or quarterly report of the Company, and (iii) such other
reports and documents of the Company as a

                                       9
<PAGE>   89
Holder may reasonably request in availing itself of any rule or regulation of
the Commission allowing a Holder to sell any such securities without
registration.

        3.14 TRANSFER OF REGISTRATION RIGHTS. The right to cause the Company to
register securities granted Holders under Sections 3.4, 3.5, and 3.8 may be
assigned to a transferee or assignee who acquires at least 25,000 shares of
Preferred Stock (or securities convertible thereinto) (or Common Stock issued
upon conversion of the Preferred Stock or a combination of such Common Stock and
Preferred Stock) then held by such Holder, provided that the Company is given
written notice of such assignment prior to such assignment. In addition, rights
to cause the Company to register securities may be freely assigned to any
constituent partner of a Holder, where such Holder is a partnership, or to any
affiliate (as that term is defined in Rule 405 promulgated by the Commission
under the Securities Act) or any officer, director, or principal shareholder
thereof, where such Holder is a corporation.

                          IV. COVENANTS OF THE COMPANY

        The Company hereby covenants and agrees as follows:

        4.1 ANNUAL FINANCIAL INFORMATION. The Company will furnish the following
reports to each Holder for so long as such Holder (together will all of its
affiliates) is a holder of more than 5% of any series of Preferred Stock, as
soon as practicable after the end of each fiscal year, and in any event within
90 days thereafter: (i) consolidated balance sheet of the Company and its
subsidiaries, if any, as of the end of such fiscal year, and (ii) consolidated
statement of income and consolidated statement of cash flows of the Company and
its subsidiaries, if any, for such year, prepared in accordance with generally
accepted accounting principles consistently applied and setting forth in each
case in comparative form the figures for the previous fiscal year, all in
reasonable detail and certified in an unqualified opinion by a national
accounting firm selected by the Company.

        4.2 INSPECTION. For so long as a Holder is eligible to receive reports
under Section 4.1, it shall also have the right, at its expense, to visit and
inspect any of the properties of the Company or any of its subsidiaries, and to
discuss their affairs, finances, and accounts with their officers, all at such
reasonable times and as often as may be reasonably requested.

        4.3 ASSIGNMENT OF RIGHTS TO FINANCIAL INFORMATION. The rights granted
pursuant to Sections 4.1 and 4.2 may be assigned or otherwise conveyed by any
Holder or by any subsequent transferee of any such rights, upon written notice
to the Company; provided, however, that such rights may not be transferred to
any transferee who the Company, acting in good faith, deems to be a competitor
of the Company.

        4.4 PROPRIETARY INFORMATION AND NON-COMPETITION AGREEMENTS. The Company
will require each person employed by the Company in a technical or management
position, whether at present or in the future, to execute a Proprietary
Information Agreement in the Company's standard form, as a condition of such
employment. The Company will also require certain key employees to enter into
non-competition agreements as a condition of their continued employment.

                                       10

<PAGE>   90

        4.5 CONFIDENTIALITY AGREEMENT. Each Holder agrees that it will use its
best efforts to hold any information such Holder receives after the date of this
Agreement regarding the Company pursuant to Section 4.1 or 4.2, or while in
attendance at meetings of the Board of Directors, and which the Company deems to
be confidential, in confidence and will use its best efforts not to disclose
such information without the prior consent of the Company, except to the extent
such information: (i) is or becomes publicly known from a source other than a
Holder, (ii) is made publicly known by the Company, (iii) is known by the Holder
at the time of disclosure by the Company or (iv) is disclosed to the Holder by a
source other than the Company or another Holder free of any obligation of
confidentiality. Notwithstanding the foregoing, the Company will collaborate
with each Holder as necessary to develop mutually agreed-upon information which
such Holder can provide to its investors.

        4.6 INSIDER TRANSACTIONS. The Company will not enter into any material
insider transactions without the approval of a majority of the representatives
of the Holders, if any, to the Board of Directors.

        4.7 EMPLOYEE STOCK AND OPTION PLANS. The Company will not sell shares of
its Common Stock or options to purchase shares of its Common Stock to its
employees except pursuant to an existing plan and any future plan approved by a
unanimous vote of the Board of Directors of the Company.

        4.8 FINANCIAL UPDATES TO BOARD. At each meeting of the Board of
Directors of the Company, each member of the Board of Directors will receive
actual and forecasted updated financial statements for the current year by
quarter.

        4.9 TERMINATION OF COVENANTS. Notwithstanding anything to the contrary
set forth herein, the covenants set forth in this Article IV shall terminate and
be of no further force or effect on or after the date of the first sale of the
Company's securities pursuant to which a registration statement is filed by the
Company under the Securities Act in connection with an underwritten public
offering of its securities.

                           V. RIGHTS OF FIRST REFUSAL

        5.1 NEW SECURITIES The Company hereby grants to the holders of the
Series DD Convertible Debentures and the holders of the Series EE Convertible
Debentures (the "Debenture Holders") and the Series CC Preferred Stock, Series
DD Preferred Stock and Series EE Preferred Stock (the "Series CC, DD and EE
Holders," and, together with the Debenture Holders, the "Rightholders") the
right of first refusal to purchase such Rightholder's pro rata share of "New
Securities" (as defined in this Section 5.1) that the Company may propose to
sell and issue. Such Rightholder's pro rata share, for purposes of this right of
first refusal, is the ratio of (X) the number of shares of Registrable
Securities with respect to which such Rightholder is deemed to be a holder
immediately prior to the issuance of such New Securities to (Y) the total number
of outstanding shares of Common Stock on an as-converted basis. For all purposes
in this Agreement of determining the Preferred Stock held by a Purchaser, all
Series DD Convertible Debentures and Series EE Convertible Debentures shall be
treated as if converted to

                                       11
<PAGE>   91
Series DD Preferred and Series EE Preferred Stock, respectively. This right of
first refusal shall be subject to the following provisions:

        (a) "New Securities" shall mean any Common Stock and Preferred Stock of
the Company whether or not authorized on the date hereof, and rights, options,
or warrants to purchase said Common Stock or Preferred Stock and securities of
any type whatsoever that are, or may become, convertible into said Common Stock
or Preferred Stock; provided, however, that "New Securities" does not include
the following:

               (i) shares of Common Stock, or options to purchase shares of
Common Stock, issued, issuable or granted to officers, directors, and employees
of or consultants to the Company pursuant to stock plans or option plans
approved by the Board of Directors;

               (ii) shares of Common Stock issuable upon conversion of the
Preferred Stock;

               (iii) securities of the Company offered to the public pursuant to
a registration statement filed under the Securities Act;

               (iv) securities of the Company issued in connection with
strategic transactions approved by the Board of Directors of the Company;

               (v) securities of the Company issued pursuant to the acquisition
of another corporation by the Company by merger, purchase of all or
substantially all of the assets, or other reorganization whereby the Company
owns more than fifty percent (50%) of the voting power of such other
corporation, so long as such transactions were approved by the Board of
Directors of the Company;

               (vi) shares of stock issuable upon conversion of convertible
debentures;

               (vii) shares of stock issuable upon exercise of warrants; or

               (VIII) securities issued in connection with any stock split,
stock dividend, or recapitalization by the Company.

        (b) In the event that Company proposes to undertake an issuance of New
Securities, the Company shall give each Rightholder written notice of its
intention, describing the type of New Securities, the price, and the general
terms upon which the Company proposes to issue the same. Each Rightholder shall
have 20 days after receipt of such notice to agree to purchase its pro rata
share of such New Securities at the price and upon the terms specified in the
notice by giving written notice to the Company and stating therein the quantity
of New Securities to be purchased.

        (c) In the event that any Rightholder fails to exercise in full the
right of first refusal within the 20-day period specified above, the Company
shall have 120 days thereafter to sell (or enter into an agreement pursuant to
which the sale of New Securities covered thereby

                                       12
<PAGE>   92
shall be closed, if at all, within 60 days from the date of said agreement) any
remaining New Securities respecting which the Rightholders' Rights were not
exercised, at a price and upon terms no more favorable to the purchasers thereof
than specified in the Company's notice to the Rightholders. In the event the
Company has not sold any remaining New Securities within such 120 day period (or
sold and issued New Securities in accordance with the foregoing within 60 days
from the date of such agreement) the Company shall not thereafter issue or sell
any New Securities, without first offering such New Securities to the
Rightholders in the manner provided above.

               (d) The right of first refusal granted under this Section 5.1
shall not apply to, and shall terminate on the earlier of (i) the date of a
liquidation, dissolution or winding up of the Company pursuant to Section 3 of
the Articles of Incorporation, or (ii) the date upon which a registration
statement filed by the Company under the Securities Act, in connection with an
underwritten public offering, first becomes effective.

               (e) This right of first refusal is nonassignable except to any
transferee to whom registration rights may be transferred pursuant to Section
3.14.

        5.2 OUTSTANDING SECURITIES. If (i) the Company receives notice under
Section 10.1(a) of the Company's Bylaws of the proposed sale of shares of the
Company's capital stock by (A) an officer of the Company, (B) a director of the
Company or (C) a holder of at least 5% of the Company's capital stock
(determined on an as-converted-to Common Stock basis) and (ii) the Company
elects not to purchase such shares pursuant to the right of first refusal in
favor of the Company provided in Section 10.1 of the Company's Bylaws, then the
Company shall within ten days of such notice assign its right of first refusal
to the Rightholders (on a pro-rata basis with respect to the number of shares of
Common Stock (as determined on an as-converted-basis) by each such holder) and
provide notice of such assignment to such holders and, thereafter, shall take
such actions as are reasonably necessary to permit such holders to exercise such
right of first refusal.

        5.3 WAIVER OF RIGHT OF FIRST REFUSAL. The rights of the Rightholders
under Section 5.1 of the Sixth Amended and Restated Investors' Rights Agreement
to (i) notice of the issuance of the Series EE Convertible Debentures and 2000
Warrants and (ii) purchase their pro-rata shares of such debentures and
warrants, are hereby waived.

                                VI. MISCELLANEOUS

        6.1 GOVERNING LAW. This Agreement shall be governed in all respects by
the laws of the State of California.

        6.2 SURVIVAL. The representations, warranties, covenants, and agreements
made herein shall survive any investigation made by any Holder and the closing
of the transactions contemplated hereby. All statements as to factual matters
contained in any certificate or other instrument delivered by or on behalf of
the Company pursuant hereto in connection with the transactions contemplated
hereby shall be deemed to be representations and warranties by the Company
hereunder solely as of the date of such certificate or instrument.

                                       13
<PAGE>   93

        6.3 SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors, and administrators of the
parties hereto and shall inure to the benefit of and be enforceable by each
person who shall be a holder of Registrable Securities from time to time;
provided, however, that prior to the receipt by the Company of adequate written
notice of the transfer of any Registrable Securities specifying the full name
and address of the transferee, the Company may deem and treat the person listed
as the holder of such shares in its records as the absolute owner and holder of
such shares for all purposes, including the payment of dividends or any
redemption price.

        6.4 SEPARABILITY. In case any provision of the Agreement shall be
invalid, illegal, or unenforceable, the validity, legality, and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

        6.5 AMENDMENT AND WAIVER.

               (a) This Agreement may be amended or modified only upon the
written consent of the Holders of not less than 66-2/3% of the Registrable
Securities; provided, however, that the rights set forth in paragraph 3.5 of
this Agreement may be amended or modified only with the written consent of the
Company and Holders of more than 66-2/3% of the aggregate outstanding shares of
Registrable Securities.

               (b) The obligations of the Company and the rights of the Holders
under this Agreement may be waived only with the written consent of the Holders
of not less than 66-2/3% of the Registrable Securities; provided, however, that
the obligations of the Company and the rights of the Holders set forth in
Section 3.5 of this Agreement may be waived only with the written consent of the
Company and Holders of more than 66-2/3% of the aggregate outstanding shares of
Registrable Securities.

               (c) Except to the extent provided in this Section 6.5, neither
this Agreement nor any provision hereof may be changed, waived, discharged, or
terminated, except by a statement in writing signed by the party against which
enforcement of the change, waiver, discharge, or termination is sought.

        6.6 DELAYS OR OMISSIONS. It is agreed that no delay or omission to
exercise any right, power, or remedy accruing to any Holder, upon any breach,
default or noncompliance of the Company under this Agreement shall impair any
such right, power, or remedy, nor shall it be construed to be a waiver of any
such breach, default or noncompliance, or any acquiescence therein, or of or in
any similar breach, default or noncompliance thereafter occurring. It is further
agreed that any waiver, permit, consent, or approval of any kind or character on
any Holder's part of any breach, default or noncompliance under the Agreement or
any waiver on such Holder's part of any provisions or conditions of this
Agreement must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this
Agreement, by law, or otherwise afforded to Holders, shall be cumulative and not
alternative.

                                       14
<PAGE>   94

        6.7 NOTICES, ETC. All notices and other communications required or
permitted hereunder shall be in writing and shall be sent by registered or
certified mail, return receipt requested, postage prepaid, by means of a
nationally recognized overnight courier service, by telex or by facsimile,
addressed or sent: (a) if to a Holder, at such Holder's address or facsimile
number as set forth on the Company's records, or at such other address or
facsimile number as such Holder shall have furnished to the Company in writing,
or (b) if to the Company, at its address or facsimile number as set forth at the
end of this Agreement, or at such other address or facsimile number as the
Company shall have furnished to the Holders in writing.

        6.8 ATTORNEYS' FEES. If legal action is brought to enforce or interpret
this Agreement, the prevailing party shall be entitled to recover its reasonable
attorneys' fees and legal costs in connection therewith.

        6.9 NO INVESTMENT OBLIGATION. The Company and each of the Purchasers
hereby agree and acknowledge that the Purchasers, individually and jointly, are
under no express or implied obligation to continue to invest in the Company. The
decision to make any future investments in the Company is within the complete
and absolute discretion of each Purchaser.

        6.10 AGGREGATION AND AFFILIATE STATUS. For purposes of determining the
amount of shares or Registrable Securities held by a Purchaser or Holder, all
shares or Registrable Securities held by entities affiliated with such Purchaser
or Holder shall be aggregated with the shares or Registrable Securities held by
such Purchaser or Holder. For such purpose, all entities under the management of
Chancellor LGT Asset Management shall be deemed to be affiliates of each other
and of Chancellor LGT Asset Management.

        6.11 ENTIRE AGREEMENT. The Company and each of the Purchasers hereby
agrees and acknowledges that this Agreement and all exhibits hereto constitute
the full and entire understanding and agreement between the parties with regard
to the subject matter hereof. There are no other agreements or understandings
with respect to the subject matter set forth herein, express or implied, other
than this Agreement.

        6.12 TITLES AND SUBTITLES. The titles of the paragraphs and
subparagraphs of this Agreement are for convenience of reference only and are
not to be considered in construing this Agreement.

        6.13 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

                                       15
<PAGE>   95

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:___________________________________
    Ken Kenitzer
    President

PURCHASER:

CHARTER GROWTH CAPITAL, L.P.

By:___________________________________
    Name: Kevin J. McQuillan
    Title: General Partner

<PAGE>   96

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

CHARTER GROWTH CAPITAL CO-INVESTMENT FUND, L.P.

By:_________________________________
    Name: Kevin J. McQuillan
    Title: General Partner

<PAGE>   97

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

CITIVENTURE 96 PARTNERSHIP FUND, L.P.

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   98

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

NAZEM & COMPANY

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   99

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

OAK INVESTMENT PARTNERS VI, L.P.

By:_________________________________
    Name:  Bandel Carano
    Title:    Managing Member

<PAGE>   100

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

OAK VI AFFILIATES FUND, L.P.

By:_________________________________
    Name:  Bandel Carano
    Title:    Managing Member

<PAGE>   101

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

TRANS CAPITAL SDN. BHD.

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   102

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

NAZEM & COMPANY IV, L.P.

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   103

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

TRANSATLANTIC VENTURE FUND

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   104

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

J.F. SHEA COMPANY, INC., AS NOMINEE 1990-13

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   105

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

BRENTWOOD ASSOCIATES VI

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   106

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

CHANCELLOR LGT PRIVATE CAPITAL OFFSHORE PARTNERS II

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   107

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

HALLADOR VENTURE FUND II, A CALIFORNIA LIMITED PARTNERSHIP

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   108

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

BAY PARTNERS IV

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   109

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

CHANCELLOR LGT PRIVATE CAPITAL III

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   110

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

HMS CAPITAL PARTNERS

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   111

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

JOHN E. ROGERS & LOIS A. ROGERS JTWROS

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   112

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

HMS CAPITAL PARTNERS (ANNEX)

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   113

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

CHANCELLOR LGT PRIVATE CAPITAL OFFSHORE PARTNERS I

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   114

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

HMS GROUP (1)

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   115

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

CALIFORNIA BPIV L.P.

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   116

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

FURMAN SELZ INVESTORS L.P.

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   117

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

HARVEST TECHNOLOGY PARTNERS I

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   118

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth in the first paragraph hereof.

COMPANY:

REPEATER TECHNOLOGIES, INC.

By:_________________________________
    Ken Kenitzer
    President

PURCHASER:

HMS (OVERSEAS) PARTNERS

By:_________________________________

Name:_______________________________

Title:______________________________

<PAGE>   119

                                    EXHIBIT A

                             SCHEDULE OF PURCHASERS

Bay Partners IV, L.P.
Brentwood Associates VI
California BPIV, L.P.
CGC Investors, L.P.
Chancellor LGT Private Capital Partners III, L.P.
Chancellor LGT Private Capital Offshore Partners I, C.V.
Chancellor LGT Private Capital Offshore Partners II, L.P.
Charter Growth Capital, L.P.
Charter Growth Capital Co-investment Fund L.P.
Citiventure 96 Partnership Fund, L.P.
Dixon R. Doll & Carol Doll as Trustees
DMW Investors '95
Doll Family Partnership
Hallador Venture Fund II, a California Limited Partnership
HMS Capital Partners
HMS Capital Partners (Annex) HMS Group HMS (Overseas) Partners Michael Hone as
Trustee International Synergies Ltd.
J.F. Shea Company, Inc., as nominee 1990-13
Nazem & Company IV, L.P.
Oak Investment Partners VI, L.P.
Oak VI Affiliates Fund, L.P.
Kevin J. McQuillen
Spring Point Partners, L.P.
Edward F. Straube
Transatlantic Venture Fund
University of Michigan Business School Growth Fund
WA&H Investment, L.L.C.

<PAGE>   120

                                    EXHIBIT F

                             SCHEDULE OF EXCEPTIONS

        This Schedule of Exceptions is made and given pursuant to Section 3 of
the Convertible Debenture Purchase Agreement (the "Agreement") dated as of
July 11, 2000, by and among Repeater Technologies, Inc. (the "Company") and
the Purchasers set forth on the Schedule of Purchasers attached thereto as
EXHIBIT A. The section numbers in this Schedule of Exceptions correspond to the
section numbers in the Agreement. Any terms used in this Schedule of Exceptions
shall have the meanings defined for them in the Agreement unless otherwise
defined herein.

        3.2 CAPITALIZATION.

        The Company has outstanding stock options to purchase 2,394,642 shares
of its Common Stock pursuant to its 1990 Incentive Stock Plan, under which an
aggregate of 2,716,910 shares have been authorized for issuance. The Company has
outstanding stock options to purchase 1,093,104 shares of its Common Stock
pursuant to its Key Executives Stock Option Plan, under which an aggregate of
1,351,544 shares have been authorized for issuance. The Company has outstanding
stock options to purchase 545,850 shares of its Common Stock pursuant to its
2000 Equity Incentive Plan, under which an aggregate of 3,000,000 shares have
been authorized for issuance. The Company has no outstanding stock options to
purchase shares of its Common Stock pursuant to its 2000 Employee Stock Purchase
Plan, under which an aggregate of 500,000 shares have been authorized for
issuance.

        The Company has outstanding the following warrants to purchase Common
Stock:
<TABLE>
<CAPTION>
           NAME OF                               NUMBER OF   PRICE PER        EXPIRATION
        WARRANTHOLDER                             SHARES      SHARE              DATE
        -------------                            ---------   ---------        ----------
<S>                                             <C>           <C>          <C>
    BAY PARTNERS IV                               6,749        $0.10       November 6, 2000
    BP IV                                           586        $0.10       November 6, 2000
    BRENTWOOD VI                                 40,917        $0.10       November 6, 2000
    CARL MARSZEWSKI                                 450        $0.10       November 6, 2000
    CLOYD MARVIN                                  1,840        $0.10       November 6, 2000
    DOLL FAMILY PARTNERSHIP                       3,027        $0.10       November 6, 2000
    DMW INVESTORS                                   409        $0.10       November 6, 2000
    DMW INVESTORS `95                               613        $0.10         March 10, 2002
    DMW INVESTORS `95                               613        $0.10         March 10, 2002
    ED TUCK                                         678        $0.10       November 6, 2000
    ERIC DI BENEDETTO                               204        $0.10       November 6, 2000
    FURMAN SELZ                                   4,552        $0.10       November 6, 2000
    G C & H                                         192        $0.10       November 6, 2000
    GOODMAN-E.KALISH TRUST                           41        $0.10       November 6, 2000
    GOODMAN-P.KALISH TRUST                           41        $0.10       November 6, 2000
</TABLE>
                                       i.
<PAGE>   121
<TABLE>
<CAPTION>
           NAME OF                               NUMBER OF   PRICE PER        EXPIRATION
        WARRANTHOLDER                             SHARES      SHARE              DATE
        -------------                            ---------   ---------        ----------
<S>                                             <C>           <C>          <C>
    HALLADOR VENTURE FUND II                      8,800        $0.10       November 6, 2000
    HMS CAPITAL PARTNERS                          3,816        $0.10       November 6, 2000
    HMS CAPITAL PARTNERS (ANNEX)                  4,176        $0.10       November 6, 2000
    HMS OVERSEAS                                    245        $0.10       November 6, 2000
    INTERNATIONAL SYNERGIES                         409        $0.10       November 6, 2000
    J F SHEA                                      3,007        $0.10       November 6, 2000
    JOHN RICHARDSON                               1,022        $0.10       November 6, 2000
    KEN KENITZER                                    361        $0.10       November 6, 2000
    MICHAEL HONE                                    912        $0.10       November 6, 2000
    MICHIGAN BUSINESS SCHOOL GROWTH FUND            245        $0.10       November 6, 2000
    MOMS CC PARTNERS                              1,070        $0.10       November 6, 2000
    NAZEM IV                                     81,834        $0.10       November 6, 2000
    OAK INVESTMENT PARTNERS VI                   79,968        $0.10       November 6, 2000
    OAK VI AFFILIATES FUND                        1,865        $0.10       November 6, 2000
    TAO CHOW                                        204        $0.10       November 6, 2000
    TOTAL                                       248,846
</TABLE>

        The Company has outstanding the following warrants to purchase Series BB
Preferred Stock:
<TABLE>
<CAPTION>
           NAME OF                               NUMBER OF   PRICE PER            EXPIRATION
        WARRANTHOLDER                             SHARES      SHARE                 DATE
        -------------                            ---------   ---------            ----------
<S>                                             <C>           <C>               <C>
    LIGHTHOUSE CAPITAL PARTNERS                  18,940        $2.64              July 31, 2004
    BAY PARTNERS IV                              36,434        $2.64            August 21, 2002
    BRENTWOOD ASSOCIATES VI                      26,882        $2.64            August 21, 2002
    CALIFORNIA BP IV                              3,168        $2.64            August 21, 2002
    DIXON R. DOLL                                 4,563        $2.64            August 21, 2002
    DOLL FAMILY PARTNERSHIP                         261        $2.64            August 21, 2002
    DMW INVESTORS `95                             1,630        $2.64            August 21, 2002
    HALLADOR VENTURE FUND II                     45,895        $2.64            August 21, 2002
    HMS CAPITAL PARTNERS                         46,388        $2.64            August 21, 2002
    MICHAEL HONE                                  2,930        $2.64            August 21, 2002
    INTERNATIONAL SYNERGIES                         652        $2.64            August 21, 2002
    J.F. SHEA CO.                                19,469        $2.64            August 21, 2002
    NAZEM & COMPANY IV                           90,122        $2.64            August 21, 2002
    OAK INVESTMENT PARTNERS VI                  277,614        $2.64            August 21, 2002
    OAK VI AFFILIATES FUND                        6,477        $2.64            August 21, 2002
    JOHN E. ROGERS                               27,252        $2.64            August 21, 2002
</TABLE>

                                      ii.
<PAGE>   122

<TABLE>
<CAPTION>
           NAME OF                               NUMBER OF   PRICE PER        EXPIRATION
        WARRANTHOLDER                             SHARES      SHARE              DATE
        -------------                            ---------   ---------        ----------
<S>                                             <C>           <C>          <C>
TRANS CAPITAL                                   226,284        $2.64       August 21, 2002
    UNIVERSITY OF MICHIGAN GROWTH FUND              391        $2.64       August 21, 2002
    TOTAL                                       835,352
</TABLE>

        The Company has outstanding the following warrants to purchase Series DD
Preferred Stock:
<TABLE>
<CAPTION>
           NAME OF                              NUMBER OF    PRICE PER        EXPIRATION
        WARRANTHOLDER                            SHARES       SHARE              DATE
        -------------                           ---------    ---------        ----------
<S>                                             <C>           <C>          <C>
    PHOENIX LEASING INCORPORATED                  3,955        $5.50       January 25, 2009
    TRANSAMERICA BUSINESS CREDIT                100,000        $5.50           July 8, 2006
    CORPORATION
    TOTAL                                       103,955
</TABLE>

        The Company has outstanding the following debentures convertible into
shares of Series DD Preferred Stock:
<TABLE>
<CAPTION>
                      NAME OF DEBENTURE HOLDER                       PRINCIPAL AMOUNT
<S>                                                                  <C>
   BRENTWOOD ASSOCIATES VI, L.P.                                       $99,995.50
   CHANCELLOR LGT PRIVATE CAPITAL PARTNERS III, L.P.                    95,540.50
   CHANCELLOR LGT PRIVATE CAPITAL OFFSHORE PARTNERS I, C.V.             13,491.50
   CHANCELLOR LGT PRIVATE CAPITAL OFFSHORE PARTNERS II, L.P.           172,111.50
   CITIVENTURE 96 PARTNERSHIP FUND, L.P.                               386,985.50
   CHARTER GROWTH CAPITAL, L.P.                                      1,999,998.00
   CHARTER GROWTH CAPITAL CO-INVESTMENT FUND, L.P.                   7,875,004.50
   CGC INVESTORS, L.P.                                                 124,998.50
   DIXON R. DOLL AND CAROL DOLL AS TRUSTEES UTA                         51,870.50
   9-10-92 OF THE DIXON AND CAROL DOLL FAMILY TRUST
   DOLL FAMILY PARTNERSHIP                                               2,959.00
   DMW INVESTORS '95                                                    18,524.00
   HALLADOR VENTURE FUND II, A CALIFORNIA LIMITED PARTNERSHIP           99,995.50
   HMS GROUP                                                            49,995.00
   INTERNATIONAL SYNERGIES LTD.                                          7,403.00
</TABLE>

                                      iii.
<PAGE>   123

<TABLE>
<S>                                                                 <C>
   J.F. SHEA CO., INC.                                                 499,999.50
   AS NOMINEE 1990-13
   NAZEM & COMPANY IV, L.P.                                          1,123,320.00
   OAK INVESTMENT PARTNERS VI, LIMITED PARTNERSHIP                   1,249,996.00
   TRANSATLANTIC VENTURE FUND                                        1,123,320.00
   UNIVERSITY OF MICHIGAN                                                4,438.50
   BUSINESS SCHOOL GROWTH FUND
   TOTAL                                                           $14,999,946.50
</TABLE>

        3.5 AGREEMENTS; ACTION.

        (a)     Certain directors, officers and employees of the Company have
                purchased shares of the Company's Preferred Stock in connection
                with equity financings of the Company.

        (b)     The Company has filed with the Securities and Exchange
                Commission a Registration Statement on Form S-1, covering the
                offer and sale of 5,462,500 shares of its Common Stock for a
                proposed maximum aggregate offering price of $54,625,000.

                Loan and Security Agreement, dated July 8, 1999, between the
                Company and Transamerica Business Credit Corporation.

                Senior Loan and Security Agreement No. L6216, dated January 25,
                1999, between the Company and Phoenix Leasing Incorporated.

                Master Equipment Lease Agreement, dated July 24, 1997, between
                the Company and Lighthouse Capital Partners II, L.P.

                Lease Line Schedule No. 1 to Master Equipment Lease Agreement
                No. 171, dated July 24, 1997, between the Company and Lighthouse
                Capital Partners II, L.P.

                Side Letter Agreement No.1 to Lease Line Schedule No. 1 to
                Master Equipment Lease Agreement No. 171, dated July 24, 1997,
                between the Company and Lighthouse Capital Partners II, L.P.

                Equipment Schedule No.2 to Lease Line Schedule No. 1 to Master
                Equipment Lease Agreement No. 171, dated October 20, 1997,
                between the Company and Lighthouse Capital Partners II, L.P.

                Equipment Schedule No.3 to Lease Line Schedule No. 1 to Master
                Equipment Lease Agreement No. 171, dated June 29, 1998, between
                the Company and Lighthouse Capital Partners II, L.P.

                                      iv.
<PAGE>   124

                Equipment Schedule No.4 to Lease Line Schedule No. 1 to Master
                Equipment Lease Agreement No. 171, dated October 30, 1998,
                between the Company and Lighthouse Capital Partners II, L.P.

                Master Lease Agreement, dated December 1, 1995, between the
                Company and NEC America, Inc.

                Volume Purchase Agreement, dated February 4, 1998, between the
                Company and Clearnet, Inc.

                Volume Purchase Agreement, Issue 01, dated October 16, 1998,
                between the Company and Amica Wireless.

                Volume Purchase Agreement, Issue 03, dated August 26, 1998,
                between the Company and Alaska DigiTel, LLC.

                Volume Purchase Agreement, dated May 7, 1999, between the
                Company and Montana Wireless, Inc., DBA Blackfoot
                Communications.

                Assignment of Lease, dated March 1, 2000, between the Company
                and The Gwydion Company, LLC.

                Agreement, dated May 13, 1998, between the Company and US West
                Wireless, LLC, as amended by Amendment No. Two to Agreement No.
                98050992, dated March 31, 1999, between the Company and US West
                Wireless, LLC.

                Volume Purchase Agreement, Issue 02, dated August 11, 1998,
                between the Company and Three Rivers PCS.

                Volume Purchase Agreement, Issue 02, dated May 27, 1998, between
                the Company and Virginia and West Virginia Alliance, Inc.

                Master Purchase Agreement for Equipment, Software and Services,
                dated August 29, 1999, between the Company and Sprint Spectrum
                L.P.

                General Purchase Agreement, dated January 12, 1999, between the
                Company and PrimeCo Personal Communications, L.P.

                Asset Purchase Agreement, dated November 4, 1999, among the
                Company, The Gwydion Company, LLC, Harry Ayvazian and Gary
                Grimes.

                Manufacturing License Agreement, dated as of January 29, 1991,
                between the Company and Sierra Digital.

                Lease, dated August 7, 1992, between the Company and The Sobrato
                1979 Trust, as amended by the First Amendment to Lease, dated
                October 16, 1998, between the Company and Sobrato Interests II.

                                       v.
<PAGE>   125

                Lease Financing Agreement, dated July 24, 1997, between the
                Company and Lighthouse Capital Partners.

                General Lease Agreement, dated as of October 1, 1996, between
                the Company and AT&T Capital Corporation and schedules thereto.

                Master Lease Agreement, dated as of October 30, 1995, between
                the Company and Comdisco, Inc. and schedules thereto.

                License Agreement, dated May 12, 1998, between the Company and
                Matthew Fuerter.

                Change of Control Agreement, dated November 3, 1999, between the
                Company and Timothy Marcotte.

        3.7 TITLE TO PROPERTIES AND ASSETS; LIENS, ETC. Pursuant to the
Company's loan agreement with Transamerica Business Credit Corporation ("TBCC"),
all of the Company's properties and assets are subject to a general lien.
Pursuant to the Company's capital equipment leases, such leases are secured by a
lien on the leased assets.

        3.8 PATENTS AND TRADEMARKS. The Company jointly owns certain receive
diversity inventions relating to CDMA repeater technology with an employee
pursuant to the License Agreement dated May 12, 1998, between the Company and
Matthew Fuerter.

        3.9 COMPLIANCE WITH OTHER INSTRUMENTS.

        In connection with the Company's acquisition of substantially all of the
assets and assumption of substantially all of the liabilities of The Gwydion
Company LLC, the Company is in breach of Sections 5.17 and 5.23 of that certain
Loan and Security Agreement, dated as of July 8, 1999, between the Company and
TBCC. By letter dated April 10, 2000, TBCC waived such breaches.

        3.16 INSURANCE. The Company does not maintain sufficient insurance to
replace its leased facilities should they be destroyed.

                                      vi.
<PAGE>   126

                                    EXHIBIT H

                                     FORM OF
                AMENDED AND RESTATED MANAGEMENT RIGHTS AGREEMENT

This Agreement will confirm that REPEATER TECHNOLOGIES, INC. (the "Company")
agrees that CHARTER GROWTH CAPITAL, L.P., CHARTER GROWTH CAPITAL CO-INVESTMENT
FUND, L.P. and CGC INVESTORS, L.P. (collectively, the "Investors") shall have
the following rights as long as any amount remains outstanding under any of the
Company's Subordinated Unsecured Convertible Debentures dated November 25, 1998
or dated the Effective Date of this Agreement ("Debentures") held by any of the
Investors or any of the Investors are stockholders of the Company:

1. The Investors shall be entitled to consult with and advise management of the
Company on significant business issues, including management's proposed annual
operating plans, and management will meet with the Investors regularly during
each year at the Company's facilities at mutually agreeable times for such
consultation and advice and to review progress in achieving said plans;

2. The Investors may examine the books and records of the Company and inspect
its facilities, and will receive upon request information at reasonable times
and intervals concerning the general status of the Company's financial condition
and operations, provided that access to highly confidential proprietary
information and facilities need not be provided;

3. The Company shall invite one representative of the Investors to attend all
meetings of its Board of Directors (and all committees thereof) in a nonvoting
observer capacity and, in this respect, shall give such representative copies of
all notices, minutes, consents and other material that it provides to its
directors; provided, however, that the Company reserves the right to exclude
such representative from access to any material or meeting or portion thereof if
the Company believes upon advice of counsel that such exclusion is reasonably
necessary to preserve the attorney-client privilege, to protect highly
confidential proprietary information or for other similar reasons. Such
representative may participate in discussions of matters brought to the Board.

4. The Company shall provide the Investors and/or their representative with
unaudited quarterly financial statements as soon as practicable, but in no event
later than 30 days after the end of each fiscal quarter.

5. The Company shall reimburse the Investors and/or their representative for all
reasonable costs and expenses incurred by them in connection with the exercise
of their rights under this Agreement.

The occurrence and continuation of the Company's breach of any of the above
obligations shall constitute an "Event of Default" under the Debentures, in
accordance with their terms, and make available to the Investors the rights and
remedies set forth in the Debentures. For all purposes, including without
limitation, of determining whether a breach of the above obligations has

                                       i.
<PAGE>   127

occurred and is continuing, this Agreement shall be deemed to be a "Transaction
Document" under the terms of the Debentures.

The aforementioned rights are intended to satisfy the requirement of management
rights for purposes of qualifying each Investor's investment in the Company as a
"venture capital investment" for purposes of the Department of Labor "plan
asset" regulations, 29 C.F.R. Section 2510.3-101, and in the event the
aforementioned rights are not satisfactory for such purpose, the Company and the
Investors shall reasonably cooperate in good faith to agree upon mutually
satisfactory management rights that satisfy such regulations.

The Investors agree, and any representative of the Investors will agree, to hold
in confidence and trust and not use or disclose any confidential information
provided to or learned by them in connection with their rights under this
Agreement.

The rights described herein shall terminate and be of no further force or effect
upon the consummation of a firmly underwritten public offering on Form S-1 or
SB-2 of the Company's Common Stock, provided that the offering price to the
public is at least $6.50 per share (after adjustments for any stock splits,
stock dividends, stock combinations or other recapitalizations).

This Agreement amends and restates the Management Rights Agreement dated
November 25, 1998 between the Company and the Investors in its entirety and such
agreement is superceded hereby.

               [the remainder of this page is intentionally blank]

                                      ii.
<PAGE>   128

This Agreement may be executed in one or more counterparts, each of which shall
be deemed to be an original, and such counterparts, together, shall constitute
but one and the same instrument.

Agreed and accepted this ______ day of _______________, 2000 (the "Effective
Date").

REPEATER TECHNOLOGIES, INC.                       CHARTER GROWTH CAPITAL, L.P.

By:________________________                       By:________________________
Name:______________________                       Name:______________________
Title:_____________________                       Title:_____________________

                                                  CHARTER GROWTH CAPITAL
                                                  CO-INVESTMENT FUND, L.P.

                                                  By:________________________
                                                  Name:______________________
                                                  Title:_____________________

                                                  CGC INVESTORS, L.P.

                                                  By:________________________
                                                  Name:______________________
                                                  Title:_____________________

                                      iii.<PAGE>   1
                                                                     EXHIBIT 4.1

                       ADVANTA BUSINESS CARD MASTER TRUST

                                     Issuer

                                       and

                             BANKERS TRUST COMPANY

                                Indenture Trustee

                                MASTER INDENTURE

                       Dated as of ________________, 2000

<PAGE>   2

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

                 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
                      ACT OF 1939 AND INDENTURE PROVISIONS(1)

<TABLE>
<CAPTION>
Trust Indenture
  Act Section                                                           Indenture Section
<S>                                                                     <C>
310(a)(1) ..........................................................           6.11
   (a)(2) ..........................................................           6.11
   (a)(3) ..........................................................           6.10
   (a)(4) ..........................................................       Not Applicable
   (a)(5) ..........................................................           6.11
   (b) .............................................................       6.08, 6.11
   (c) .............................................................       Not Applicable
311(a) .............................................................           6.12
   (b) .............................................................           6.12
   (c) .............................................................       Not Applicable
312(a) .............................................................       7.01, 7.02(a)
   (b) .............................................................           7.02(b)
   (c) .............................................................           7.02(c)
313(a) .............................................................           7.04
   (b) .............................................................           7.04
   (c) .............................................................       7.03, 7.04
   (d) .............................................................           7.04
314(a) .............................................................       3.09, 7.03(a)
   (b) .............................................................           3.06
   (c)(1)...........................................................  2.11, 8.09(c), 12.01(a)
   (c)(2)...........................................................  2.11, 8.09(c), 12.01(a)
   (c)(3)...........................................................  2.11, 8.09(c), 12.01(a)
   (d)(1)...........................................................  2.11, 8.09(c), 12.01(b)
   (d)(2) ..........................................................       Not Applicable
   (d)(3) ..........................................................       Not Applicable
   (e) .............................................................          12.01(a)
315(a) .............................................................           6.01(b)
   (b) .............................................................           6.02
   (c) .............................................................           6.01(c)
   (d) .............................................................           6.01(d)
   (d)(1) ..........................................................           6.01(d)
   (d)(2) ..........................................................           6.01(d)
   (d)(3) ..........................................................           6.01(d)
   (e) .............................................................           5.14
316(a)(1)(A) .......................................................           5.12
316(a)(1)(B) .......................................................           5.13
316(a)(2) ..........................................................       Not Applicable
316(b) .............................................................           5.08
317(a)(1) ..........................................................           5.04
317(a)(2) ..........................................................           5.04(d)
317(b) .............................................................           5.04(a)
318(a) .............................................................          12.07
</TABLE>

--------

(1)  This reconciliation and tie shall not, for any purpose, be deemed to be
     part of the within indenture.

<PAGE>   3

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                   Page
<S>                                                                               <C>
ARTICLE I
DEFINITIONS .................................................................        2

         Section 1.01.  Definitions .........................................        2
         Section 1.02.  Other Definitional Provisions .......................       14

ARTICLE II
THE NOTES ...................................................................       15

         Section 2.01.  Form Generally ......................................       15
         Section 2.02.  Denominations .......................................       16
         Section 2.03.  Execution, Authentication and Delivery ..............       16
         Section 2.04.  Authenticating Agent ................................       16
         Section 2.05.  Registration of and Limitations on Transfer and
                        Exchange of Notes ...................................       18
         Section 2.06.  Mutilated, Destroyed, Lost or Stolen Notes ..........       19
         Section 2.07.  Persons Deemed Owners ...............................       20
         Section 2.08.  Appointment of Paying Agent .........................       20
         Section 2.09.  [Reserved] ..........................................       21
         Section 2.10.  Cancellation ........................................       21
         Section 2.11.  Release of Collateral ...............................       21
         Section 2.12.  New Issuances .......................................       21
         Section 2.13.  BookEntry Notes .....................................       23
         Section 2.14.  Notices to Clearing Agency or Foreign Clearing Agency       24
         Section 2.15.  Definitive Notes ....................................       24
         Section 2.16.  Global Note .........................................       25
         Section 2.17.  Meetings of Noteholders .............................       25
         Section 2.18.  Uncertificated Classes ..............................       25

ARTICLE III
REPRESENTATIONS AND COVENANTS OF ISSUER .....................................       25

         Section 3.01.  Payment of Principal and Interest ...................       25
         Section 3.02.  Maintenance of Office or Agency .....................       26
         Section 3.03.  Money for Note Payments to Be Held in Trust .........       26
         Section 3.04.  Existence ...........................................       27
         Section 3.05.  Protection of Trust .................................       27
         Section 3.06.  Opinions as to Collateral ...........................       28
         Section 3.07.  Performance of Obligations; Servicing of Receivables        29
         Section 3.08.  Negative Covenants ..................................       30
         Section 3.09.  Statements as to Compliance .........................       31
         Section 3.10.  Issuer May Consolidate, Etc., Only on Certain Terms .       31
</TABLE>

                                        i

<PAGE>   4

<TABLE>
<CAPTION>
TABLE OF CONTENTS
(Continued)                                                                         Page
<S>                                                                                <C>
         Section 3.11.  Successor Substituted .................................       33
         Section 3.12.  No Other Business .....................................       33
         Section 3.13.  [Reserved] ............................................       33
         Section 3.14.  Servicer's Obligations ................................       33
         Section 3.15.  Investments ...........................................       34
         Section 3.16.  Capital Expenditures ..................................       34
         Section 3.17.  Removal of Administrator ..............................       34
         Section 3.18.  Restricted Payments ...................................       34
         Section 3.19.  Notice of Events of Default ...........................       34
         Section 3.20.  Further Instruments and Acts ..........................       34

ARTICLE IV
SATISFACTION AND DISCHARGE ....................................................       35

         Section 4.01.  Satisfaction and Discharge of this Indenture ..........       35
         Section 4.02.  Application of Trust Money ............................       36

ARTICLE V
PAY OUT EVENTS, DEFAULTS AND REMEDIES .........................................       36

         Section 5.01.  Pay Out Events ........................................       36
         Section 5.02.  Events of Default .....................................       37
         Section 5.03.  Acceleration of Maturity; Rescission and Annulment ....       38
         Section 5.04.  Collection of Indebtedness and Suits for Enforcement by
                        Indenture Trustee .....................................       38
         Section 5.06.  Optional Preservation of the Collateral ...............       41
         Section 5.07.  Limitation on Suits ...................................       42
         Section 5.08.  Unconditional Rights of Noteholders to Receive
                        Principal and Interest ................................       43
         Section 5.10.  Rights and Remedies Cumulative ........................       43
         Section 5.11.  Delay or Omission Not Waiver ..........................       43
         Section 5.12.  Rights of Noteholders to Direct Indenture Trustee .....       43
         Section 5.13.  Waiver of Past Defaults ...............................       44
         Section 5.14.  Undertaking for Costs .................................       44
         Section 5.16.  Action on Notes .......................................       45

ARTICLE VI
THE INDENTURE TRUSTEE .........................................................       45

         Section 6.01.  Duties of the Indenture Trustee .......................       45
         Section 6.02.  Notice of Pay Out Event or Event of Default ...........       47
         Section 6.03.  Rights of Indenture Trustee ...........................       47
</TABLE>

                                       ii

<PAGE>   5

<TABLE>
<CAPTION>
TABLE OF CONTENTS
(Continued)                                                                            Page
<S>                                                                                   <C>

         Section 6.04.  Not Responsible for Recitals or Issuance of Notes ........       48
         Section 6.05.  May Hold Notes ...........................................       49
         Section 6.06.  Money Held in Trust ......................................       49
         Section 6.07.  Compensation, Reimbursement and Indemnification ..........       49
         Section 6.08.  Replacement of Indenture Trustee .........................       50
         Section 6.09.  Successor Indenture Trustee by Merger ....................       51
         Section 6.10.  Appointment of Co-Indenture Trustee or Separate
                        Indenture Trustee ........................................       51
         Section 6.11.  Eligibility; Disqualification ............................       52
         Section 6.12.  Preferential Collection of Claims Against ................       52
         Section 6.13.  Tax Returns ..............................................       52
         Section 6.14.  Representations and Covenants of the Indenture Trustee ...       53
         Section 6.15.  Custody of the Collateral ................................       53

ARTICLE VII
NOTEHOLDERS' LIST AND REPORTS BY
 INDENTURE TRUSTEE AND ISSUER ....................................................       54

         Section 7.01.  Issuer to Furnish Indenture Trustee Names and
                        Addresses of Noteholders .................................       54
         Section 7.02.  Preservation of Information; Communications to Noteholders       54
         Section 7.03.  Reports by Issuer ........................................       54
         Section 7.04.  Reports by Indenture Trustee .............................       55

ARTICLE VIII
ALLOCATION AND APPLICATION OF COLLECTIONS ........................................       55

         Section 8.01.  Collection of Money ......................................       55
         Section 8.02.  Rights of Noteholders ....................................       56
         Section 8.03.  Establishment of Collection Account and Excess
                        Funding Account ..........................................       56
         Section 8.04.  Collections and Allocations ..............................       58
         Section 8.05.  Shared Principal Collections .............................       59
         Section 8.06.  Additional Withdrawals from the Collection Account .......       59
         Section 8.07.  Allocation of Collateral to Series or Groups .............       60
         Section 8.08.  Excess Finance Charge Collections ........................       60
         Section 8.09.  Release of Collateral; Eligible Loan Documents ...........       61
         Section 8.10.  Opinion of Counsel .......................................       61

ARTICLE IX
DISTRIBUTIONS AND REPORTS TO NOTEHOLDERS .........................................       62
</TABLE>

                                       iii

<PAGE>   6

<TABLE>
<CAPTION>
TABLE OF CONTENTS
(Continued)                                                                         Page
<S>                                                                                <C>

ARTICLE X
SUPPLEMENTAL INDENTURES ......................................................       62

         Section 10.01. Supplemental Indentures Without Consent of Noteholders       62
         Section 10.02. Supplemental Indentures with Consent of Noteholders ..       63
         Section 10.03. Execution of Supplemental Indentures .................       65
         Section 10.04. Effect of Supplemental Indenture .....................       65
         Section 10.05. Conformity With Trust Indenture Act ..................       65
         Section 10.06. Reference in Notes to Supplemental Indentures ........       65

ARTICLE XI
TERMINATION ..................................................................       66

         Section 11.01. Termination of Trust .................................       66
         Section 11.02. Final Distribution ...................................       66
         Section 11.03. Issuer's Termination Rights ..........................       67
         Section 11.04. [Reserved] ...........................................       67

ARTICLE XII
MISCELLANEOUS ................................................................       67

         Section 12.01. Compliance Certificates and Opinions etc .............       67
         Section 12.02. Form of Documents Delivered to Indenture Trustee .....       69
         Section 12.03. Acts of Noteholders ..................................       69
         Section 12.04. Notices, Etc. to Indenture Trustee and Issuer ........       70
         Section 12.05. Notices to Noteholders; Waiver .......................       70
         Section 12.06. Alternate Payment and Notice Provisions ..............       71
         Section 12.07. Conflict with Trust Indenture Act ....................       71
         Section 12.08. Effect of Headings and Table of Contents .............       71
         Section 12.09. Successors and Assigns ...............................       72
         Section 12.10. Separability .........................................       72
         Section 12.11. Benefits of Indenture ................................       72
         Section 12.12. Legal Holidays .......................................       72
         Section 12.13. GOVERNING LAW ........................................       72
         Section 12.14. Counterparts .........................................       72
         Section 12.15. Trust Obligation .....................................       72
         Section 12.16. No Petition ..........................................       73
</TABLE>

                                       iv

<PAGE>   7

     MASTER INDENTURE, dated as of _______ __, 2000 (herein, as amended,
modified or supplemented from time to time as permitted hereby, called the
"Indenture"), between Advanta Business Card Master Trust, a common law business
trust formed under the laws of the State of Delaware (herein, together with its
permitted successors and assigns, called the "Issuer" or the "Trust"), and
Bankers Trust Company, a New York banking corporation, as indenture trustee
(herein, together with its successors in the trusts hereunder, called the
"Indenture Trustee"). This Indenture may be supplemented at any time and from
time to time by an indenture supplement in accordance with Article X hereof (an
"Indenture Supplement," and any Indenture Supplement together with this
Indenture and amendments hereof collectively referred to as the "Agreement"). If
a conflict exists between the terms and provisions of this Indenture and any
Indenture Supplement, the terms and provisions of the Indenture Supplement shall
be controlling with respect to the related Series.

                              PRELIMINARY STATEMENT

     The Issuer has duly authorized the execution and delivery of this Indenture
to provide for an issue of its asset backed notes (the "Notes") as provided in
this Indenture. All covenants and agreements made by the Issuer herein are for
the benefit and security of the Noteholders. The Issuer is entering into this
Indenture, and the Indenture Trustee is accepting the trusts created hereby, for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.

     Simultaneously with the delivery of this Indenture, the Issuer is entering
into the Transfer and Servicing Agreement with Advanta Business Receivables
Corp., a Nevada corporation, as Transferor (the "Transferor"), and Advanta Bank
Corp., a Utah industrial loan corporation, as Servicer (in such capacity, the
"Servicer"), pursuant to which (a) the Transferor will convey to the Issuer all
of its right, title and interest in, to and under the Receivables, which the
Transferor will have received from Advanta Bank Corp. or another Account Owner
(in such capacity, each, a "Seller") pursuant to a Receivables Purchase
Agreement and (b) the Servicer will agree to service the Receivables and make
collections thereon on behalf of the Noteholders.

     Under each Receivables Purchase Agreement and the Transfer and Servicing
Agreement, Receivables arising in the Accounts from time to time will be
conveyed thereunder to the Issuer.

                                 GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee, for the benefit of the
Holders of the Notes, all of the Issuer's right, title and interest, whether now
owned or hereafter acquired, in, to and under (a) the Receivables, (b)
Interchange and Recoveries related to and all money, instruments, investment
property and other property distributed or distributable in respect of (together
with all earnings, dividends, distributions, income, issues, and profits
relating to) the Receivables pursuant to the terms of the Transfer and Servicing
Agreement, this Indenture and any Indenture Supplement; (c) all Eligible
Investments and all money, investment property, instruments and other property
on deposit from time to time in, credited to or related to the Collection
Account, the Series Accounts and the Excess Funding Account (including any
subaccounts of such account), and in all interest, dividends, earnings, income
and other distributions from time to time received, receivable or otherwise
distributed or distributable thereto or in respect thereof (including any
accrued discount realized on liquidation of any investment purchased at a
discount); (d) all rights, remedies, powers, privileges and claims of the Issuer
under or with respect to any Series Enhancement and the Transfer and Servicing
Agreement (whether arising pursuant to the terms

<PAGE>   8

of such Series Enhancement or the Transfer and Servicing Agreement or otherwise
available to the Issuer at law or in equity), including, without limitation, the
rights of the Issuer to enforce such Series Enhancement or the Transfer and
Servicing Agreement, and to give or withhold any and all consents, requests,
notices, directions, approvals, extensions or waivers under or with respect to
such Series Enhancement or the Transfer and Servicing Agreement to the same
extent as the Issuer could but for the assignment and security interest granted
to the Indenture Trustee for the benefit of the Noteholders; (e) all proceeds of
any credit insurance policies relating to the Receivables; (f) all proceeds of
any derivative contracts between the Trust or ABRC and a counterparty, as
described in any Indenture Supplement; (g) all money, accounts, general
intangibles, chattel paper, instruments, documents, goods, investment property,
deposit accounts, certificates of deposit, letters of credit, and advices of
credit belonging to the Issuer; (h) all other property of the Issuer; (i) all
present and future claims, demands, causes and choses in action in respect of
any or all of the foregoing and all payments on or under and all proceeds of
every kind and nature whatsoever in respect of any or all of the foregoing,
including all proceeds, products, rents, receipts or profits of the conversion,
voluntary or involuntary, into cash or other property, all cash and non-cash
proceeds, and other property consisting of, arising from or relating to all or
any part of any of the foregoing; and (j) any proceeds of the foregoing, in each
case, excluding the Transferor Interest (including, without limitation, all
amounts payable to the Holders of any Certificates, pursuant to the terms of any
Transaction Document) (collectively, the "Collateral").

                                LIMITED RECOURSE

     The obligation of the Issuer to make payments of principal of, interest on
and other amounts in respect of, the Notes is limited by recourse only to the
Collateral.

                                    ARTICLE I

                                   DEFINITIONS

     Section 1.01. Definitions.

     Whenever used in this Indenture, the following words and phrases shall have
the following meanings, and the definitions of such terms are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

     "ABC" shall mean Advanta Bank Corp., a Utah industrial loan corporation,
and its successors and permitted assigns.

     "ABRC" shall mean Advanta Business Receivables Corp., a Nevada corporation,
and its successors and permitted assigns.

     "Accumulation Period" shall mean, with respect to any Series, or any Class
within a Series, a period following the Revolving Period during which
Collections of Principal Receivables are accumulated in an account for the
benefit of the Noteholders of such Series or Class within such Series, which
shall be the controlled accumulation period, the principal accumulation period,
the early accumulation period, the optional accumulation period, the limited
accumulation period or other

                                       -2-

<PAGE>   9

accumulation period, in each case as defined with respect to such Series in the
related Indenture Supplement.

     "Act" shall have the meaning specified in subsection 12.03(a).

     "Adjusted Invested Amount" shall mean, as of any particular date of
determination, the Invested Amount as of that date, minus the amount on deposit
in the applicable Series Account, as described in any Indenture Supplement.

     "Administration Agreement" shall mean the Administration Agreement, dated
as of _____ __, 2000 between the Issuer and the Administrator, as the same may
be amended, supplemented or otherwise modified from time to time.

     "Administrator" shall mean ABC, or its permitted successors and assigns, or
any successor Administrator under the Administration Agreement.

     "Adverse Effect" shall have the meaning specified in the Transfer and
Servicing Agreement.

     "Aggregate Investor Percentage" shall mean, with respect to Principal
Receivables, Finance Charge and Administrative Receivables and Defaulted
Receivables, as the case may be, as of any date of determination, the sum of the
Investor Percentages (as defined in the related Indenture Supplements) of all
Series of Notes issued and outstanding on such date of determination; provided,
however, that the Aggregate Investor Percentage shall not exceed 100%.

     "Agreement" shall mean this Master Indenture, as the same may be amended,
supplemented or otherwise modified from time to time, including, with respect to
any Series or Class, the related Indenture Supplement.

     "Amortization Period" shall mean, with respect to any Series, or any Class
within a Series, a period following the Revolving Period during which
Collections of Principal Receivables are distributed to Noteholders, which shall
be the controlled amortization period, the principal amortization period, the
early amortization period, the optional amortization period, the limited
amortization period or other amortization period, in each case as defined with
respect to such Series in the related Indenture Supplement.

     "Applicants" shall have the meaning specified in Section 2.09.

     "Authorized Officer" shall mean:

     (a) with respect to the Issuer, any officer of the Owner Trustee who is
authorized to act for the Owner Trustee in matters relating to the Issuer and
who is identified on the list of Authorized Officers, containing the specimen
signature of each such Person, delivered by the Owner Trustee to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter) and any Vice President or more senior officer of the
Administrator who is authorized to act for the Administrator in matters relating
to the Issuer and to be acted upon by the Administrator pursuant to the

                                       -3-

<PAGE>   10

Administration Agreement and who is identified on the list of Authorized
Officers (containing the specimen signatures of such officers) delivered by the
Administrator to the Indenture Trustee on the Closing Date (as such list may be
modified or supplemented from time to time thereafter).

     (b) with respect to the Transferor, any officer of the Transferor who is
authorized to act for the Transferor in matters relating to the Transferor and
who is identified on the list of Authorized Officers, containing the specimen
signature of each such Person, delivered by the Transferor to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter).

     (c) with respect to the Servicer, any officer of the Servicer who is
authorized to act for the Servicer in matters relating to the Servicer and who
is identified on the list of Authorized Officers, containing the specimen
signature of each such Person, delivered by the Servicer to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter).

     "Bearer Notes" shall have the meaning specified in Section 2.01.

     "Beneficial Owner" shall mean, with respect to a Book-Entry Note, the
Person who is the owner of such Book-Entry Note, as reflected on the books of
the Clearing Agency or Foreign Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency or Foreign Clearing Agency
(directly as a Clearing Agency Participant or as an Indirect Participant, in
accordance with the rules of such Clearing Agency or Foreign Clearing Agency).

     "Book-Entry Notes" shall mean beneficial interests in the Notes, ownership
and transfers of which shall be made through book entries by a Clearing Agency
or Foreign Clearing Agency as described in Section 2.13.

     "Class" shall mean, with respect to any Series, any one of the classes of
Notes of that Series.

     "Clearing Agency" shall mean an organization registered as a "clearing
agency" pursuant to Section 17A of the Securities Exchange Act of 1934, as
amended, and serving as clearing agency for a Series or Class of Book-Entry
Notes.

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

     "Clearstream" shall mean Clearstream Banking, societe anonyme, a
professional depository incorporated under the laws of Luxembourg, and its
successors.

     "Closing Date" shall mean, with respect to any Series, the closing date
specified in the related Indenture Supplement.

     "Code" shall mean the Internal Revenue Code of 1986, as amended.

                                       -4-

<PAGE>   11

     "Collateral" shall have the meaning specified in the Granting Clause of
this Indenture.

     "Collection Account" shall have the meaning specified in Section 8.03.

     "Commission" shall mean the Securities and Exchange Commission and its
successors in interest.

     "Corporate Trust Office" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at date of the execution of this Indenture is located
at Four Albany Street, 10th Floor, New York, New York 10006, or at such other
address as the Indenture Trustee may designate from time to time by notice to
the Noteholders and the Transferor, or the principal corporate trust office of
any successor Indenture Trustee (the address of which the successor Indenture
Trustee will notify the Noteholders and the Transferor); provided that for the
purposes of Section 3.02, the address of any such office shall be in
[______________________________].

     "Coupon" shall have the meaning specified in Section 2.01.

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

     "Definitive Notes" shall mean Notes in definitive, fully registered form.

     "Deposit Date" shall mean each day on which the Servicer deposits
Collections in the Collection Account.

     "Determination Date" shall mean, unless otherwise specified in the
Indenture Supplement for a particular Series, the third Business Day preceding
the fifteenth day of each calendar month.

     "Dollars," "$" or "U.S. $" shall mean United States dollars.

     "DTC" shall mean The Depository Trust Company.

     "Eligible Institution" shall mean [any depository institution (which may be
the Owner Trustee or the Indenture Trustee) organized under the laws of the
United States or any one of the states thereof, including the District of
Columbia (or any domestic branch of a foreign bank), which depository
institution at all times (a) is a member of the FDIC and (b) has (i) a long-term
unsecured debt rating acceptable to the Rating Agencies or (ii) a certificate of
deposit rating acceptable to the Rating Agencies. Notwithstanding the previous
sentence, any institution the appointment of which satisfies the Rating Agency
Condition shall be considered an Eligible Institution. If so qualified, the
Servicer may be considered an Eligible Institution for the purposes of this
definition].

     "Eligible Investments" shall mean the following securities, instruments,
investments or other property, other than securities issued by or obligations of
the Seller:

     (a) direct obligations of, or obligations fully guaranteed as to timely
payment of principal and interest by, the United States of America;

                                       -5-

<PAGE>   12

     (b) demand deposits, time deposits or certificates of deposit (having
original maturities of no more than 365 days) of depository institutions or
trust companies incorporated under the laws of the United States of America or
any state thereof, including the District of Columbia (or domestic branches of
foreign banks) and subject to supervision and examination by federal or state
banking or depository institution authorities; provided that at the time of the
Trust's investment or contractual commitment to invest therein, the short-term
debt rating of such depository institution or trust company shall be in the
highest rating category of at least one of the Rating Agencies;

     (c) commercial paper or other short-term obligations having original or
remaining maturities of no more than thirty (30) days, and having, at the time
of the Trust's investment or contractual commitment to invest therein, a rating
in the highest rating category of at least one of the Rating Agencies;

     (d) demand deposits, time deposits and certificates of deposit which are
fully insured by the FDIC having, at the time of the Trust's investment therein,
a rating in the highest rating category of at least one of the Rating Agencies;

     (e) notes or bankers' acceptances (having original maturities of no more
than 365 days) issued by any depository institution or trust company referred to
in clause (b) above;

     (f) money market funds having, at the time of the Trust's investment
therein, a rating in the highest rating category of at least one of the Rating
Agencies (including funds for which the Indenture Trustee or any of its
Affiliates is investment manager or advisor);

     (g) time deposits (having maturities not later than the succeeding Payment
Date) other than as referred to in clause (d) above, with a Person the
commercial paper of which has a credit rating satisfactory to at least one of
the Rating Agencies; or

     (h) any other investment of a type or rating that satisfies the Rating
Agency Condition.

     "Enhancement Agreement" shall mean any agreement, instrument or document
governing the terms of any Series Enhancement or pursuant to which any Series
Enhancement is issued or outstanding.

     "Euroclear Operator" shall mean Morgan Guaranty Trust Company of New York,
Brussels office, as operator of the Euroclear System.

     "Event of Default" shall have the meaning specified in Section 5.02.

     "Excess Allocation Series" shall mean a Series that, pursuant to the
Indenture Supplement therefor, is entitled to receive certain excess Collections
of Finance Charge and Administrative Receivables, as more specifically set forth
in such Indenture Supplement. If so specified in the Indenture Supplement for a
Group of Series, each such Series may be an Excess Allocation Series only for
the other Series in such Group.

     "Excess Finance Charge Collections" shall have the meaning specified in
Section 8.08.

                                       -6-

<PAGE>   13

     "Excess Funding Account" shall have the meaning set forth in Section 8.03.

     "Excess Funding Amount" shall mean the amount on deposit in the Excess
Funding Account [(other than interest and investment earnings)].

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

     "Finance Charge Shortfalls" shall have the meaning specified in Section
8.08.

     "Foreclosure Certificate" shall have the meaning specified in the Trust
Agreement.

     "Foreclosure Remedy" shall have the meaning specified in subsection
5.05(a)(iii).

     "Foreign Clearing Agency" shall mean Clearstream and the Euroclear
Operator.

     "GAAP" means generally accepted accounting principles in the United States
of America in effect from time to time.

     "Global Note" shall have the meaning specified in Section 2.16.

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

     "Group" shall mean, with respect to any Series, the group of Series, if
any, in which the related Indenture Supplement specifies such Series is to be
included.

     "Indenture" shall mean this Master Indenture, dated as of [___________ __],
2000, between the Issuer and the Indenture Trustee, as the same may be amended,
supplemented or otherwise modified from time to time.

     "Indenture Supplement" shall mean, with respect to any Series, a supplement
to this Indenture, executed and delivered in connection with the original
issuance of the Notes of such Series pursuant to Section 10.01, and an amendment
to this Indenture executed pursuant to Sections 10.01 or 10.02, and, in either
case, including all amendments thereof and supplements thereto.

     "Indenture Trustee" shall mean Bankers Trust Company, a New York banking
corporation, in its capacity as trustee under the Agreement, its successors in
interest and any successor indenture trustee under the Agreement.

                                       -7-

<PAGE>   14

     "Independent" shall mean, when used with respect to any specified Person,
that the Person (a) is in fact independent of the Issuer, any other obligor upon
the Notes, the Transferor and any Affiliate of any of the foregoing Persons, (b)
does not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor, the Transferor or any Affiliate
of any of the foregoing Persons and (c) is not connected with the Issuer, any
such other obligor, the Transferor or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

     "Independent Certificate" shall mean a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 12.01, made by
an Independent appraiser or other expert appointed by an Issuer Order, and such
opinion or certificate shall state that the signer has read the definition of
"Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

     "Indirect Participant" shall mean other Persons such as securities brokers
and dealers, banks and trust companies that clear or maintain a custodial
relationship with a participant of DTC, either directly or indirectly.

     "Invested Amount" shall mean, with respect to any Series and for any date,
an amount equal to the "Invested Amount" or "Adjusted Invested Amount," as
applicable, specified in the related Indenture Supplement.

     "Investment Company Act" shall mean the Investment Company Act of 1940, as
amended.

     "Issuer" shall mean the Trust.

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

     "Monthly Period" shall mean, with respect to each Payment Date, unless
otherwise provided in an Indenture Supplement, the period from and including the
first day of the preceding calendar month to and including the last day of such
calendar month; provided, however, that the initial Monthly Period with respect
to any Series will commence on the Closing Date with respect to such Series.

     "New Issuance" shall have the meaning specified in subsection 2.12(a).

     "Note Interest Rate" shall mean, as of any particular date of determination
and with respect to any Series or Class, the interest rate as of such date
specified therefor in the related Indenture Supplement.

     "Note Owner" shall mean, with respect to a Book-Entry Note, the Person who
is the owner of such Book-Entry Note, as reflected on the books of the Clearing
Agency, or on the books of a Person maintaining an account with such Clearing
Agency (directly as a Clearing Agency Participant or as an Indirect Participant,
in accordance with the rules of such Clearing Agency).

     "Note Register" shall have the meaning specified in Section 2.05.

                                       -8-

<PAGE>   15

     "Noteholder" or "Holder" shall mean the Person in whose name a Note is
registered on the Note Register and, if applicable, the holder of any Bearer
Note, Global Note, or Coupon, as the case may be, or such other Person deemed to
be a "Noteholder" or "Holder" in any related Indenture Supplement.

     "Notes" shall mean all Series of Notes issued by the Trust pursuant to this
Indenture and the applicable Indenture Supplements.

     "Officer's Certificate" shall mean, unless otherwise specified in this
Indenture, a certificate delivered to the Indenture Trustee signed by any
Authorized Officer of the Issuer, Transferor, or Servicer, as applicable, under
the circumstances described in, and otherwise complying with, the applicable
requirements of Section 12.01.

     "Opinion of Counsel" shall mean a written opinion of counsel, who may be
counsel for, or an employee of, the Person providing the opinion and who shall
be reasonably acceptable to the Indenture Trustee; provided that a Tax Opinion
shall be an opinion of nationally recognized tax counsel.

     "Outstanding" shall mean, as of the date of determination, all Notes
theretofore authenticated and delivered under this Indenture except:

     (i) Notes theretofore canceled by the Transfer Agent and Registrar or
delivered to the Transfer Agent and Registrar for cancellation;

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

     (iii) Notes in exchange for or in lieu of other Notes which have been
authenticated and delivered pursuant to this Indenture unless proof satisfactory
to the Indenture Trustee is presented that any such Notes are held by a
protected purchaser (as defined in Section 8-303 of the UCC as in effect in the
State of New York);

provided that in determining whether the Holders of Notes representing the
requisite Outstanding Amount have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Notes owned by the Issuer, any
other obligor upon the Notes, the Transferor, the Servicer or any Affiliate of
any of the foregoing Persons shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Indenture Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes that a Responsible Officer of the
Indenture Trustee actually knows to be so owned shall be so disregarded. Notes
so owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is not
the Issuer, any other obligor upon the Notes, the Transferor, the Servicer or
any Affiliate of any of the foregoing Persons.

                                       -9-

<PAGE>   16

In making any such determination, the Indenture Trustee may rely on the
representations of the pledgee and shall not be required to undertake any
independent investigation.

     "Outstanding Amount" means the aggregate principal amount of all Notes
Outstanding at the date of determination.

     "Owner Trustee" shall mean _________________________, in its capacity as
owner trustee under the Trust Agreement, its successors in interest and any
successor owner trustee under the Trust Agreement.

     "Paired Series" shall mean (i) each Series which has been paired with
another Series (which Series may be prefunded or partially prefunded), such that
the reduction of the Invested Amount or Adjusted Invested Amount of such Series
results in the increase of the Invested Amount of such other Series, as
described in the related Indenture Supplements, and (ii) such other Series.

     "Pay Out Event" shall mean, with respect to any Series, a Trust Pay Out
Event or a Series Pay Out Event.

     "Paying Agent" shall mean any paying agent appointed pursuant to Section
2.08 and shall initially be the Indenture Trustee; provided that if the
Indenture Supplement for a Series so provides, a separate or additional Paying
Agent may be appointed with respect to such Series.

     "Payment Date" shall mean, with respect to any Series, the date specified
in the applicable Indenture Supplement.

     "Permitted Assignee" shall mean any Person who, if it were to purchase
Receivables (or interests therein) in connection with a sale thereof pursuant to
Section 5.05(a), would not cause the Trust to be taxable as an association (or a
publicly traded partnership) taxable as a corporation for federal income tax
purposes.

     "Principal Sharing Series" shall mean a Series that, pursuant to the
Indenture Supplement therefor, is entitled to receive Shared Principal
Collections. If so specified in the Indenture Supplements for a Group of Series,
each such Series may be a Principal Sharing Series only for the other Series in
such Group.

     "Principal Shortfalls" shall have the meaning specified in subsection
8.05(a).

     "Principal Terms" shall mean, with respect to any Series, (a) the name or
designation; (b) the initial principal amount (or method for calculating such
amount), the Invested Amount and the Required Transferor Interest; (c) the Note
Interest Rate for each Class of Notes of such Series (or method for the
determination thereof); (d) the payment date or dates and the date or dates from
which interest shall accrue; (e) the method for allocating Collections to
Noteholders; (f) the designation of any Series Accounts and the terms governing
the operation of any such Series Accounts; (g) the Servicing Fee; (h) the terms
of any form of Series Enhancements with respect thereto; (i) the terms on which
the Notes of such Series may be exchanged for Notes of another Series,
repurchased by the Transferor or remarketed

                                      -10-

<PAGE>   17

to other investors; (j) the Series Termination Date; (k) the number of Classes
of Notes of such Series and, if more than one Class, the rights and priorities
of each such Class; (l) the extent to which the Notes of such Series will be
issuable in temporary or permanent global form (and, in such case, the
depositary for such global note or notes, the terms and conditions, if any, upon
which such global note or notes may be exchanged, in whole or in part, for
Definitive Notes, and the manner in which any interest payable on a temporary or
global note will be paid); (m) whether the Notes of such Series may be issued in
bearer form and any limitations imposed thereon; (n) the priority of such Series
with respect to any other Series; (o) whether such Series will be part of a
Group; (p) whether such Series will be a Principal Sharing Series; (q) whether
such Series will be an Excess Allocation Series; (r) whether such Series will or
may be a Paired Series and the Series with which it will be paired, if
applicable; and (t) any other terms of such Series.

     "Proceeding" shall mean any suit in equity, action at law or other judicial
or administrative proceeding.

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

     "Rating Agency" shall mean, with respect to any outstanding Series or
Class, each rating agency, as specified in the applicable Indenture Supplement,
selected by the Transferor to rate the Notes of such Series or Class.

     "Rating Agency Condition" shall mean, with respect to any action, that each
Rating Agency shall have notified the Transferor, the Servicer, the Owner
Trustee and the Indenture Trustee in writing that such action will not result in
a reduction or withdrawal of the then existing rating of any outstanding Series
or Class with respect to which it is a Rating Agency.

     "Record Date" shall mean, with respect to any Payment Date, the last day of
the calendar month immediately preceding such Payment Date unless otherwise
specified for a Series in the related Indenture Supplement.

     "Redemption Date" shall mean, with respect to any Series, the date or dates
specified in the related Indenture Supplement.

     "Registered Notes" shall have the meaning specified in Section 2.01.

     "Required Minimum Principal Balance" shall mean, as of any particular date
of determination, for all Series (unless otherwise specified in the related
Indenture Supplement for any Series which is a Paired Series) (i) the sum of the
"Invested Amounts" for all Series on such date, plus (ii) the Required
Transferor Interest on such date, minus (iii) the amount on deposit in the
Excess Funding Account.

                                      -11-

<PAGE>   18

     "Required Transferor Interest" shall mean, with respect to any date, an
amount equal to the product of (i) the Required Transferor Percentage and (ii)
the aggregate amount of Principal Receivables.

     "Required Transferor Percentage" shall mean 7%; provided, however, that the
Transferor may reduce the Required Transferor Percentage upon (x) thirty (30)
days prior notice to the Indenture Trustee and each Rating Agency, (y)
satisfaction of the Rating Agency Condition with respect thereto and (z)
delivery to the Indenture Trustee of a certificate of a Vice President or more
senior officer of the Transferor stating that the Transferor reasonably believes
that such reduction will not, based on the facts known to such officer at the
time of such certification, then or thereafter have an Adverse Effect; provided
further that the Required Transferor Percentage shall not at any time be less
than 2%.

     "Responsible Officer" shall mean, when used with respect to the Indenture
Trustee, any officer within the Corporate Trust Office of the Indenture Trustee
including any vice president, assistant vice president, assistant treasurer,
assistant secretary, trust officer or any other officer of the Indenture Trustee
customarily performing functions similar to those performed by the persons who
at the time shall be such officers or to whom any corporate trust matter is
referred at the Corporate Trust Office because of such officer's knowledge of
and familiarity with the particular subject.

     "Revolving Period" shall have, with respect to each Series, the meaning
specified in the related Indenture Supplement.

     "Securities Act" shall mean the Securities Act of 1933, as amended.

     "Seller" shall mean any of ABC or another Account Owner, in its capacity as
seller under a Receivables Purchase Agreement.

     "Series" shall mean any series of Notes issued pursuant to this Indenture
and the related Indenture Supplement.

     "Series Account" shall mean any deposit, trust, securities escrow or
similar account maintained for the benefit of the Noteholders of any Series or
Class, as specified in any Indenture Supplement.

     "Series Enhancement" shall mean the rights and benefits provided to the
Trust or the Noteholders of any Series or Class pursuant to any letter of
credit, surety bond, cash collateral account, collateral interest, spread
account, reserve account, cash collateral guaranty, insurance policy, tax
protection agreement, interest rate swap agreement, interest rate cap agreement,
cross support feature or other similar arrangement. The subordination of any
Series or Class to another Series or Class shall be deemed to be a Series
Enhancement.

     "Series Enhancer" shall mean the Person or Persons providing any Series
Enhancement, other than (except to the extent otherwise provided with respect to
any Series in the Indenture Supplement for such Series) any account or deposits
therein or the Noteholders of any Series or Class which is subordinated to
another Series or Class.

                                      -12-

<PAGE>   19

     "Series Issuance Date" shall mean, with respect to any Series, the date on
which the Notes of such Series are to be originally issued in accordance with
Section 2.12 and the related Indenture Supplement.

     "Series Pay Out Event" shall have, with respect to any Series, the meaning
specified pursuant to the related Indenture Supplement.

     "Series Termination Date" shall mean, with respect to any Series, the
termination date for such Series specified in the related Indenture Supplement.

     "Servicer" shall have the meaning specified in the Transfer and Servicing
Agreement.

     "Shared Finance Charge Collections" shall mean, with respect to any Payment
Date, the aggregate amount for all outstanding Series that the related Indenture
Supplements specify are to be treated as "Shared Finance Charge Collections" for
such Payment Date.

     "Shared Principal Collections" shall have the meaning specified in
subsection 8.05(a).

     "Tax Opinion" shall mean, with respect to any action, an Opinion of Counsel
to the effect that, for federal income tax purposes, (a) such action will not
adversely affect the tax characterization as debt of the Notes of any
outstanding Series or Class that were characterized as debt at the time of their
issuance, (b) such action will not cause the Trust to be deemed to be an
association (or publicly traded partnership) taxable as a corporation and (c)
such action will not cause or constitute an event in which gain or loss would be
recognized by any Noteholder.

     "Transaction Documents" shall mean, with respect to any Series of Notes,
the Certificate of Trust, the Trust Agreement, the Receivables Purchase
Agreement, the Transfer and Servicing Agreement, this Indenture, the related
Indenture Supplement, the Administration Agreement and such other documents and
certificates delivered in connection therewith.

     "Transfer Agent and Registrar" shall have the meaning specified in Section
2.05.

     "Transfer and Servicing Agreement" shall mean the Transfer and Servicing
Agreement, dated as of [_______ __], 2000, among the Transferor, the Servicer
and the Issuer, as the same may be amended, supplemented or otherwise modified
from time to time.

     "Transfer Date" shall mean the Business Day immediately preceding each
Payment Date.

     "Transferor" shall have the meaning specified in the Transfer and Servicing
Agreement.

     "Transferor Interest" shall mean on any date of determination an amount
equal to the difference between (a) the sum of (i) the aggregate balance of
Principal Receivables at the end of the day immediately prior to such date of
determination, plus (ii) the Excess Funding Amount at the end of the day
immediately prior to such date of determination, minus (b) the aggregated
Adjusted Invested Amounts of all Series of Notes issued and outstanding on such
date of determination.

                                      -13-

<PAGE>   20

     "Transferor Percentage" shall mean, on any date of determination, when used
with respect to Principal Receivables, Finance Charge and Administrative
Receivables and Defaulted Receivables, a percentage equal to 100% minus the
Aggregate Investor Percentage with respect to such category of Receivables.

     "Trust" shall mean the Advanta Business Card Master Trust.

     "Trust Agreement" shall mean the Trust Agreement relating to the Trust,
dated as of [______ __], 2000, between ABRC and the Owner Trustee, as the same
may be amended, supplemented or otherwise modified from time to time.

     "Trust Indenture Act" or "TIA" shall mean the Trust Indenture Act of 1939,
as amended.

     "Trust Pay Out Event" shall have, with respect to each Series, the meaning
specified in Section 5.01.

     "Trustee Officer" shall mean, with respect to the Indenture Trustee any
officer assigned to the Corporate Trust Office, including any managing director,
vice president, assistant vice president, assistant treasurer, assistant
secretary or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers and
having direct responsibility for the administration of the applicable
Transaction Documents, and also, with respect to a particular matter, any other
officer, to whom such matter is referred because of such officer's knowledge of
and familiarity with the particular subject.

     "UCC" shall have the meaning specified in the Transfer and Servicing
Agreement.

     Section 1.02. Other Definitional Provisions.

     (a) With respect to any Series, all terms used herein and not otherwise
defined herein shall have the meanings ascribed to them in the Trust Agreement,
the Transfer and Servicing Agreement or the related Indenture Supplement, as
applicable.

     (b) All terms defined in this Indenture shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.

     (c) As used in this Indenture and in any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms not defined in this
Indenture or in any such certificate or other document, and accounting terms
partly defined in this Indenture or in any such certificate or other document to
the extent not defined, shall have the respective meanings given to them under
GAAP. To the extent that the definitions of accounting terms in this Indenture
or in any such certificate or other document are inconsistent with the meanings
of such terms under GAAP, the definitions contained in this Indenture or in any
such certificate or other document shall control.

     (d) Any reference to a Rating Agency shall only apply to any specific
rating agency if such rating agency is then rating any outstanding Series.

                                      -14-

<PAGE>   21

     (e) Unless otherwise specified, references to any amount as on deposit or
outstanding on any particular date shall mean such amount at the close of
business on such day.

     (f) The words "hereof," "herein," "hereunder" and words of similar import
when used in this Indenture shall refer to this Indenture as a whole and not to
any particular provision of this Indenture; references to any subsection,
Section, Schedule or Exhibit are references to subsections, Sections, Schedules
and Exhibits in or to this Indenture unless otherwise specified; and the term
"including" means "including without limitation."

     (g) Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

     "indenture securities" means the Notes

     "indenture security holder" means a Noteholder

     "indenture to be qualified" means this Indenture

     "indenture trustee" or "institutional trustee" means the Indenture Trustee

     "obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities

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

                                   ARTICLE II

                                    THE NOTES

     Section 2.01. Form Generally.

     Any Series or Class of Notes, together with the Indenture Trustee's
certificate of authentication related thereto, may be issued in bearer form (the
"Bearer Notes") with attached interest coupons and a special coupon
(collectively, the "Coupons") or in fully registered form (the "Registered
Notes") and shall be in substantially the form of an exhibit to the related
Indenture Supplement with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture or such
Indenture Supplement, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon, as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of such Notes. Any portion of the text of any Note
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Note. The terms of any Notes set forth in an exhibit to the
related Indenture Supplement are part of the terms of this Indenture, as
applicable.

                                      -15-

<PAGE>   22

     The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods, all as determined by
the officers executing such Notes, as evidenced by their execution of such
Notes.

     Each Note will be dated the Closing Date and each Definitive Note will be
dated as of the date of its authentication.

     Section 2.02. Denominations.

     Except as otherwise specified in the related Indenture Supplement and the
Notes, each class of Notes of each Series shall be issued in fully registered
form in minimum amounts of $1,000 and in integral multiples of $1,000 in excess
thereof (except that one Note of each Class may be issued in a different amount,
so long as such amount exceeds the applicable minimum denomination for such
Class), and shall be issued upon initial issuance as one or more Notes in an
aggregate original principal amount equal to the applicable Invested Amount for
such Class or Series.

     Section 2.03. Execution, Authentication and Delivery.

     Each Note shall be executed by manual or facsimile signature on behalf of
the Issuer by an Authorized Officer.

     Notes bearing the manual or facsimile signature of an individual who was,
at the time when such signature was affixed, authorized to sign on behalf of the
Issuer shall not be rendered invalid, notwithstanding the fact that such
individual ceased to be so authorized prior to the authentication and delivery
of such Notes or does not hold such office at the date of issuance of such
Notes.

     At any time and from time to time after the execution and delivery of this
Indenture, the Issuer may deliver Notes executed by the Issuer to the Indenture
Trustee for authentication and delivery, and the Indenture Trustee shall
authenticate and deliver such Notes as provided in this Indenture or the related
Indenture Supplement and not otherwise.

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

     Section 2.04. Authenticating Agent.

     (a) The Indenture Trustee may appoint one or more authenticating agents
with respect to the Notes which shall be authorized to act on behalf of the
Indenture Trustee in authenticating the Notes in connection with the issuance,
delivery, registration of transfer, exchange or repayment of the Notes. Whenever
reference is made in this Indenture to the authentication of Notes by the
Indenture Trustee or the Indenture Trustee's certificate of authentication, such
reference shall be deemed to include

                                      -16-

<PAGE>   23

authentication on behalf of the Indenture Trustee by an authenticating agent and
a certificate of authentication executed on behalf of the Indenture Trustee by
an authenticating agent. Each authenticating agent must be acceptable to the
Issuer and the Servicer.

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

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

     (d) The Issuer agrees to pay to each authenticating agent from time to time
reasonable compensation for its services under this Section 2.04.

     (e) The provisions of Sections 6.01 and 6.04 shall be applicable to any
authenticating agent.

     (f) Pursuant to an appointment made under this Section 2.04, the Notes may
have endorsed thereon, in lieu of or in addition to the Indenture Trustee's
certificate of authentication, an alternative certificate of authentication in
substantially the following form:

"This is one of the Notes described in the within-mentioned Agreement.

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

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

as Authenticating Agent
for the Indenture Trustee

By: __________________________

"Authorized Signatory"

                                      -17-

<PAGE>   24

     Section 2.05. Registration of and Limitations on Transfer and Exchange of
Notes.

     The Issuer shall cause to be kept a register (the "Note Register") in which
the Issuer shall provide for the registration of Notes and the registration of
transfers of Notes. The Indenture Trustee initially shall be the transfer agent
and registrar (in such capacity, the "Transfer Agent and Registrar") for the
purpose of registering Notes and transfers of Notes as herein provided. Upon any
resignation of any Transfer Agent and Registrar, the Issuer shall promptly
appoint a successor or, if it elects not to make such an appointment, assume the
duties of Transfer Agent and Registrar.

     If a Person other than the Indenture Trustee is appointed by the Issuer as
Transfer Agent and Registrar, the Issuer will give the Indenture Trustee prompt
written notice of the appointment of a Transfer Agent and Registrar and of the
location, and any change in the location, of the Transfer Agent and Registrar
and Note Register. The Indenture Trustee shall have the right to inspect the
Note Register at all reasonable times and to obtain copies thereof, and the
Indenture Trustee shall have the right to rely upon a certificate executed on
behalf of the Transfer Agent and Registrar by an officer thereof as to the names
and addresses of the Noteholders and the principal amounts and numbers of such
Notes.

     Upon surrender for registration of transfer of any Note at the office or
agency of the Transfer Agent and Registrar, to be maintained as provided in
Section 3.02, if the requirements of Section 8-401 of the UCC are met, the
Issuer shall execute, and upon receipt of such surrendered Note the Indenture
Trustee shall authenticate and deliver to the Noteholder, in the name of the
designated transferee or transferees, one or more new Notes (of the same Series
and Class) in any authorized denominations of like aggregate principal amount.

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

     All Notes issued upon any registration of transfer or exchange of Notes
shall evidence the same obligations, evidence the same debt, and be entitled to
the same rights and privileges under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

     Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in a form satisfactory to the Indenture Trustee duly executed by, the
Noteholder thereof or its attorney-in-fact duly authorized in writing, and by
such other documents as the Indenture Trustee may reasonably require.

     Any Note held by the Transferor at any time after the date of its initial
issuance may be transferred or exchanged only upon the delivery to the Owner
Trustee and the Indenture Trustee of a Tax Opinion dated as of the date of such
transfer or exchange, as the case may be, with respect to such transfer or
exchange.

                                      -18-

<PAGE>   25

     The registration of transfer of any Note shall be subject to the additional
requirements, if any, set forth in the related Indenture Supplement.

     No service charge shall be made for any registration of transfer or
exchange of Notes, but the Issuer and the Transfer Agent and Registrar may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of such Notes.

     All Notes surrendered for registration of transfer and exchange shall be
canceled by the Issuer and delivered to the Indenture Trustee for subsequent
destruction without liability on the part of either. The Indenture Trustee shall
destroy the Global Note upon its exchange in full for Definitive Notes and shall
deliver a certificate of destruction to the Transferor. Such certificate shall
also state that a certificate or certificates of each Foreign Clearing Agency
referred to in the applicable Indenture Supplement was received with respect to
each portion of the Global Note exchanged for Definitive Notes.

     The preceding provisions of this Section 2.05 notwithstanding, the Issuer
shall not be required to make, and Transfer Agent and Registrar need not
register, transfers or exchanges of Notes for a period of twenty (20) days
preceding the due date for any payment with respect to the Note.

     If and so long as any Series of Notes are listed on the Luxembourg Stock
Exchange and such exchange shall so require, the Indenture Trustee shall appoint
a co-transfer agent and co-registrar in Luxembourg or another European city. Any
reference in this Indenture to the Transfer Agent and Registrar shall include
any co-transfer agent and co-registrar unless the context otherwise requires.
The Indenture Trustee will enter into any appropriate agency agreement with any
co-transfer agent and co-registrar not a party to this Indenture, which will
implement the provisions of this Indenture that relate to such agent. [The
Indenture Trustee initially appoints [_____________________] at its office
located at [_____________________], as Transfer Agent and Registrar for each
Series of Notes listed on the Luxembourg Stock Exchange.]

     Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes.

     If (a) any mutilated Note is surrendered to the Indenture Trustee, or the
Indenture Trustee receives evidence to its reasonable satisfaction of the
destruction, loss or theft of any Note, and (b) in case of destruction, loss, or
theft there is delivered to the Indenture Trustee such security or indemnity as
may be required by it to hold the Issuer, the Noteholders and the Indenture
Trustee harmless, then, in the absence of notice to the Issuer, the Transfer
Agent and Registrar or the Indenture Trustee that such Note has been acquired by
a protected purchaser (as defined in Section 8-303 of the UCC as in effect in
the State of New York), the Issuer shall execute, and the Indenture Trustee
shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note of like tenor
(including the same date of issuance) and principal amount, bearing a number not
contemporaneously outstanding; provided, however, that if any such mutilated,
destroyed, lost or stolen Note shall have become or within seven (7) days shall
be due and payable, or shall have been selected or called for redemption,
instead of issuing a replacement Note, the Issuer may pay such Note without
surrender thereof, except that any mutilated Note shall be surrendered. If,
after the delivery of such replacement Note or payment of a destroyed, lost or
stolen Note pursuant to the proviso to the preceding

                                      -19-

<PAGE>   26

sentence, a protected purchaser (as defined in Section 8-303 of the UCC as in
effect in the State of New York) of the original Note in lieu of which such
replacement Note was issued presents for payment such original Note, the Issuer
and the Indenture Trustee shall be entitled to recover such replacement Note (or
such payment) from the Person to whom it was delivered or any Person taking such
replacement Note from such Person to whom such replacement Note was delivered or
any assignee of such Person, except a protected purchaser, and shall be entitled
to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in
connection therewith.

     Upon the issuance of any replacement Note under this Section 2.06, the
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Indenture Trustee or the Transfer Agent and Registrar) connected therewith.

     Every replacement Note issued pursuant to this Section 2.06 in replacement
of any mutilated, destroyed, lost or stolen Note shall constitute complete and
indefeasible evidence of an obligation of the Trust, as if originally issued,
whether or not the mutilated, destroyed, lost or stolen Note shall be found at
any time, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.

     The provisions of this Section 2.06 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes.

     Section 2.07. Persons Deemed Owners.

     Prior to due presentment for registration of transfer of any Note, the
Issuer, the Transferor, the Indenture Trustee and any agent of the Issuer, the
Transferor or the Indenture Trustee shall treat the Person in whose name any
Note is registered as the owner of such Note for the purpose of receiving
distributions pursuant to the terms of the applicable Indenture Supplement and
for all other purposes whatsoever, whether or not such Note is overdue, and
neither the Issuer, the Transferor, the Indenture Trustee nor any agent of the
Issuer, the Transferor or the Indenture Trustee shall be affected by any notice
to the contrary.

     Section 2.08. Appointment of Paying Agent.

     (a) The Issuer reserves the right at any time to vary or terminate the
appointment of a Paying Agent for the Notes, and to appoint additional or other
Paying Agents, provided that it will at all times maintain the Indenture Trustee
as Paying Agent.

     If and so long as any Notes are listed on the Luxembourg Stock Exchange and
such exchange shall so require, the Indenture Trustee will appoint a co-paying
agent in Luxembourg or another European city. The Indenture Trustee will enter
into any appropriate agency agreement with any co-paying agent not a party to
this Indenture, which will implement the provisions of this Indenture that
relate to such agent. [The Indenture Trustee initially appoints
[________________________], at its office located at

                                      -20-

<PAGE>   27

[________________________], as Paying Agent for each Series of Notes listed
on the Luxembourg Stock Exchange.

     Notice of all changes in the identity or specified office of a Paying Agent
will be delivered promptly to the Noteholders by the Indenture Trustee.

     (b) The Indenture Trustee shall cause each Paying Agent (other than itself)
to execute and deliver to the Indenture Trustee an instrument in which such
Paying Agent shall agree with the Indenture Trustee that such Paying Agent will
hold all sums, if any, held by it for payment to the Noteholders in trust for
the benefit of the Noteholders entitled thereto until such sums shall be paid to
such Noteholders and shall agree, and if the Indenture Trustee is the Paying
Agent it hereby agrees, that it shall comply with all requirements of the Code
regarding the withholding by the Indenture Trustee of payments in respect of
federal income taxes due from the Beneficial Owners.

     Section 2.09. [Reserved].

     Section 2.10. Cancellation.

     All Notes surrendered for payment, registration of transfer, exchange or
redemption shall, if surrendered to any Person other than the Indenture Trustee,
be delivered to the Indenture Trustee and shall be promptly canceled by it. The
Issuer may at any time deliver to the Indenture Trustee for cancellation any
Notes previously authenticated and delivered hereunder which the Issuer may have
acquired in any lawful manner whatsoever, and all Notes so delivered shall be
promptly canceled by the Indenture Trustee. No Notes shall be authenticated in
lieu of or in exchange for any Notes canceled as provided in this Section 2.10,
except as expressly permitted by this Indenture. All canceled Notes held by the
Indenture Trustee shall be destroyed unless the Issuer shall direct by a timely
order that they be returned to it.

     Section 2.11. Release of Collateral.

     Subject to Section 12.01, the Indenture Trustee shall release property from
the lien of this Indenture only upon receipt of an Issuer Request accompanied by
an Officer's Certificate, an Opinion of Counsel and Independent Certificates in
accordance with TIA Section314(c) and 314(d) or an Opinion of Counsel in lieu of
such Independent Certificates to the effect that the TIA does not require any
such Independent Certificates.

     Section 2.12. New Issuances.

     (a) Pursuant to one or more Indenture Supplements, the Transferor may from
time to time direct the Owner Trustee, on behalf of the Issuer, to issue one or
more new Series of Notes (a "New Issuance"). The Notes of all outstanding Series
shall be equally and ratably entitled as provided herein to the benefits of this
Indenture without preference, priority or distinction, all in accordance with
the terms and provisions of this Indenture and the applicable Indenture
Supplement except, with respect to any Series or Class, as provided in the
related Indenture Supplement. Interest on the Notes of all outstanding Series
shall be paid on each Payment Date as specified in the Indenture Supplement
relating to such

                                      -21-

<PAGE>   28

outstanding Series. Principal of the Notes of each outstanding Series shall be
paid as specified in the Indenture Supplement relating to such outstanding
Series.

     (b) On or before the Series Issuance Date relating to any new Series of
Notes, the parties hereto will execute and deliver an Indenture Supplement which
will specify the Principal Terms of such Series. The terms of such Indenture
Supplement may modify or amend the terms of this Indenture solely as applied to
such new Series. The obligation of the Owner Trustee to execute, on behalf of
the Issuer, the Notes of any Series and of the Indenture Trustee to authenticate
such Notes (other than any Series issued pursuant to an Indenture Supplement
dated as of the date hereof) and to execute and deliver the related Indenture
Supplement is subject to the satisfaction of the following conditions:

         (i) on or before the fifth day immediately preceding the Series
Issuance Date the Transferor shall have given the Owner Trustee, the Indenture
Trustee, the Servicer and each Rating Agency notice (unless such notice
requirement is otherwise waived) of such issuance and the Series Issuance Date;

         (ii) the Transferor shall have delivered to the Owner Trustee and the
Indenture Trustee any related Indenture Supplement, in form satisfactory to the
Owner Trustee and the Indenture Trustee, executed by each party hereto (other
than the Indenture Trustee);

         (iii) the Transferor shall have delivered to the Owner Trustee and the
Indenture Trustee any related Enhancement Agreement executed by the Transferor
and the Series Enhancer;

         (iv) the Rating Agency Condition shall have been satisfied with respect
to such issuance;

         (v) such issuance will not result in any Adverse Effect and the
Transferor shall have delivered to the Owner Trustee and the Indenture Trustee
an Officer's Certificate, dated the Series Issuance Date to the effect that the
Transferor reasonably believes that such issuance will not, based on the facts
known to such officer at the time of such certification, have an Adverse Effect;

         (vi) the Transferor shall have delivered to the Owner Trustee and the
Indenture Trustee (with a copy to each Rating Agency) (a) an Opinion of Counsel,
dated the Series Issuance Date with respect to such issuance, to the effect
that, except as otherwise stated in the related Indenture Supplement, the Notes
of the new Series will be characterized as debt for federal income tax purposes
and (b) a Tax Opinion, dated the Series Issuance Date with respect to such
issuance; and

         (vii) the aggregate amount of Principal Receivables theretofore
conveyed to the Trust shall be greater than the Required Minimum Principal
Balance and the Transferor Interest shall be greater than the Required
Transferor Interest, each as of the Series Issuance Date and after giving effect
to such issuance.

     (c) Upon satisfaction of the above conditions, pursuant to Section 2.03,
the Owner Trustee, on behalf of the Issuer, shall execute and the Indenture
Trustee shall authenticate and deliver the Notes of such Series as provided in
this Indenture and the applicable Indenture Supplement. Notwithstanding

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<PAGE>   29

the provisions of this Section 2.12, prior to the execution of any Indenture
Supplement, the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that the execution of such Indenture Supplement is
authorized or permitted by this Indenture and any Indenture Supplement related
to any outstanding Series. The Indenture Trustee may, but shall not be obligated
to, enter into any such Indenture Supplement which adversely affects the
Indenture Trustee's own rights, duties or immunities under this Indenture.

     (d) The Issuer may direct the Indenture Trustee to deposit the net proceeds
from any New Issuance in the Excess Funding Account. The Issuer may also specify
that on any Transfer Date the proceeds from the sale of any new Series may be
withdrawn from the Excess Funding Account and treated as Shared Principal
Collections.

     Section 2.13. Book-Entry Notes.

     Unless otherwise provided in any related Indenture Supplement, the Notes,
upon original issuance, shall be issued in the form of typewritten Notes
representing the Book-Entry Notes to be delivered to the depository specified in
such Indenture Supplement which shall be the Clearing Agency or Foreign Clearing
Agency, by or on behalf of such Series.

     The Notes of each Series shall, unless otherwise provided in the related
Indenture Supplement, initially be registered in the Note Register in the name
of the nominee of the Clearing Agency or Foreign Clearing Agency for such
Book-Entry Notes and shall be delivered to the Indenture Trustee or, pursuant to
such Clearing Agency's or Foreign Clearing Agency's instructions held by the
Indenture Trustee's agent as custodian for the Clearing Agency or Foreign
Clearing Agency.

     Unless and until Definitive Notes are issued under the limited
circumstances described in Section 2.15, no Beneficial Owner shall be entitled
to receive a Definitive Note representing such Beneficial Owner's interest in
such Note. Unless and until Definitive Notes have been issued to the Beneficial
Owners pursuant to Section 2.15:

     (a) the provisions of this Section 2.13 shall be in full force and effect
with respect to each such Series;

     (b) the Indenture Trustee shall be entitled to deal with the Clearing
Agency or Foreign Clearing Agency and the Clearing Agency Participants for all
purposes of this Indenture (including the payment of principal of and interest
on the Notes of each such Series) as the authorized representatives of the
Beneficial Owners;

     (c) to the extent that the provisions of this Section 2.13 conflict with
any other provisions of this Indenture, the provisions of this Section 2.13
shall control with respect to each such Series;

     (d) the rights of Beneficial Owners of each such Series shall be exercised
only through the Clearing Agency or Foreign Clearing Agency and the applicable
Clearing Agency Participants and shall be limited to those established by law
and agreements between such Beneficial Owners and the Clearing Agency or Foreign
Clearing Agency and/or the Clearing Agency Participants. Pursuant to the
depository

                                      -23-

<PAGE>   30

agreement applicable to a Series, unless and until Definitive Notes of such
Series are issued pursuant to Section 2.15, the initial Clearing Agency shall
make book-entry transfers among the Clearing Agency Participants and receive and
transmit distributions of principal and interest on the Notes to such Clearing
Agency Participants; and

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

     Section 2.14. Notices to Clearing Agency or Foreign Clearing Agency.

     Whenever a notice or other communication to the Noteholders is required
under this Indenture, unless and until Definitive Notes shall have been issued
to Beneficial Owners pursuant to Section 2.15, the Indenture Trustee shall give
all such notices and communications specified herein to be given to Noteholders
to the Clearing Agency or Foreign Clearing Agency, as applicable, and shall have
no obligation to the Beneficial Owners.

     Section 2.15. Definitive Notes.

     If (i) (a) the Transferor advises the Indenture Trustee in writing that the
Clearing Agency or Foreign Clearing Agency is no longer willing or able to
discharge properly its responsibilities as Clearing Agency or Foreign Clearing
Agency with respect to the Book-Entry Notes of a given Series and (b) the
Indenture Trustee or Issuer is unable to locate and reach an agreement on
satisfactory terms with a qualified successor, (ii) the Transferor, at its
option, advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency or Foreign Clearing Agency with
respect to such Series or (iii) after the occurrence of a Servicer Default,
Beneficial Owners of Notes evidencing more than 50% of the Outstanding Amount
(or such other percentage as specified in the related Indenture Supplement) of
such Series advise the Indenture Trustee and the applicable Clearing Agency or
Foreign Clearing Agency through the applicable Clearing Agency Participants in
writing that the continuation of a book-entry system is no longer in the best
interests of the Beneficial Owners of such Series, the Clearing Agency or
Foreign Clearing Agency, as the case may be, shall notify all Beneficial Owners
of such Series of the occurrence of such event and of the availability of
Definitive Notes to Beneficial Owners of such Series requesting the same. Upon
surrender to the Indenture Trustee of the Notes of such Series, accompanied by
registration instructions from the applicable Clearing Agency, the Issuer shall
execute and the Indenture Trustee shall authenticate Definitive Notes of such
Series and shall recognize the registered holders of such Definitive Notes as
Noteholders under this Indenture. Neither the Issuer nor the Indenture Trustee
shall be liable for any delay in delivery of such instructions, and the Issuer
and the Indenture Trustee may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Notes of such
Series, all references herein to obligations imposed upon or to be performed by
the applicable Clearing Agency or Foreign Clearing Agency shall be deemed to be
imposed upon and performed by the Indenture Trustee, to the extent applicable
with respect to such Definitive Notes, and the Indenture Trustee shall recognize
the registered holders of the Definitive Notes

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<PAGE>   31

of such Series as Noteholders of such Series hereunder. Definitive Notes will be
transferable and exchangeable at the offices of the Transfer Agent and
Registrar.

     Section 2.16. Global Note.

     If specified in the related Indenture Supplement for any Series, Notes may
be initially issued in the form of a single temporary Global Note (the "Global
Note") in bearer form, without interest coupons, in the denomination of the
Initial Invested Amount and substantially in the form attached to the related
Indenture Supplement. Unless otherwise specified in the related Indenture
Supplement, the provisions of this Section 2.16 shall apply to such Global Note.
The Global Note will be authenticated by the Indenture Trustee upon the same
conditions, in substantially the same manner and with the same effect as the
Definitive Notes. The Global Note may be exchanged in the manner described in
the related Indenture Supplement for Registered Notes or Bearer Notes in
definitive form. Except as otherwise specifically provided in the Indenture
Supplement, any Notes that are issued in bearer form pursuant to this Indenture
shall be issued in accordance with the requirements of Code section 163(f)(2).

     Section 2.17. Meetings of Noteholders.

     To the extent provided by the Indenture Supplement for any Series issued in
whole or in part in Bearer Notes, the Servicer or the Indenture Trustee may at
any time call a meeting of the Noteholders of such Series, to be held at such
time and at such place as the Servicer or the Indenture Trustee, as the case may
be, shall determine, for the purpose of approving a modification of or amendment
to, or obtaining a waiver of, any covenant or condition set forth in this
Indenture with respect to such Series or in the Notes of such Series, subject to
Article X.

     Section 2.18. Uncertificated Classes.

     Notwithstanding anything to the contrary contained in this Article II or in
Article XI, unless otherwise specified in any Indenture Supplement, any
provisions contained in this Article II and in Article XI relating to the
registration, form, execution, authentication, delivery, presentation,
cancellation and surrender of Notes shall not be applicable to any
uncertificated Notes, provided, however, that, except as otherwise specifically
provided in the Indenture Supplement, any such uncertificated Notes shall be
issued in "registered form" within the meaning of Code section 163(f)(1).

                                   ARTICLE III

                     REPRESENTATIONS AND COVENANTS OF ISSUER

     Section 3.01. Payment of Principal and Interest.

     (a) The Issuer will duly and punctually pay principal and interest in
accordance with the terms of the Notes as specified in the relevant Indenture
Supplement.

     (b) The Noteholders of a Series as of the Record Date in respect of a
Payment Date shall be entitled to the interest accrued and payable and principal
payable on such Payment Date as specified in

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<PAGE>   32

the related Indenture Supplement. All payment obligations under a Note are
discharged to the extent such payments are made to the Noteholder of record.

     Section 3.02. Maintenance of Office or Agency.

     The Issuer will maintain an office or agency within
[___________________________] and such other locations as may be set forth in an
Indenture Supplement where Notes may be presented or surrendered for payment,
where Notes may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee at its Corporate Trust Office to serve as its agent for the foregoing
purposes. The Issuer will give prompt written notice to the Indenture Trustee
and the Noteholders of the location, and of any change in the location, of any
such office or agency. If at any time the Issuer shall fail to maintain any such
office or agency or shall fail to furnish the Indenture Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office, and the Issuer hereby appoints the
Indenture Trustee at its Corporate Trust Office as its agent to receive all such
presentations, surrenders, notices and demands.

     Section 3.03. Money for Note Payments to Be Held in Trust.

     As specified in Section 8.03(a) and (b) herein and in the related Indenture
Supplement, all payments of amounts due and payable with respect to the Notes
which are to be made from amounts withdrawn from the Collection Account and the
Excess Funding Account shall be made on behalf of the Issuer by the Indenture
Trustee or by the Paying Agent, and no amounts so withdrawn from the Collection
Account or the Excess Funding Account shall be paid over to or at the direction
of the Issuer except as provided in this Section 3.03 and in the related
Indenture Supplement.

     On or before each Payment Date, the Issuer shall deposit or cause to be
deposited in the Collection Account of each outstanding Series an aggregate sum
sufficient to pay the amounts then becoming due under the Notes of such
outstanding Series, such sum to be held in trust for the benefit of the Persons
entitled thereto, and (unless the Paying Agent is the Indenture Trustee) shall
promptly notify the Indenture Trustee in writing of its action or failure so to
act.

     Whenever the Issuer shall have a Paying Agent in addition to the Indenture
Trustee, it will, on or before the Business Day next preceding each Payment
Date, direct the Indenture Trustee to deposit with such Paying Agent on or
before such Payment Date an aggregate sum sufficient to pay the amounts then
becoming due, such sum to be (i) held in trust for the benefit of Persons
entitled thereto and (ii) invested, pursuant to an Issuer Order, by the Paying
Agent in an Eligible Investment in accordance with the terms of the related
Indenture Supplement. For all investments made by a Paying Agent under this
Section 3.03, such Paying Agent shall be entitled to all of the rights and
obligations of the Indenture Trustee under the related Indenture Supplement,
such rights and obligations being incorporated in this paragraph by this
reference.

     The Issuer will cause each Paying Agent other than the Indenture Trustee to
execute and deliver to the Indenture Trustee an instrument in which such Paying
Agent shall agree with the Indenture Trustee (and if the Indenture Trustee acts
as Paying Agent, it hereby so agrees), subject to the provisions of this

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<PAGE>   33

Section 3.03, that such Paying Agent, in acting as Paying Agent, is an express
agent of the Issuer and, further, that such Paying Agent will:

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

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

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

         (iv) immediately resign as a Paying Agent and forthwith pay to the
Indenture Trustee all sums held by it in trust for the payment of Notes if at
any time it ceases to meet the standards required to be met by a Paying Agent at
the time of its appointment; and

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

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

     Section 3.04. Existence.

     The Issuer will keep in full effect its existence, rights and franchises as
a common law business trust under the laws of the State of Delaware (unless it
becomes, or any successor Issuer hereunder is or becomes, organized under the
laws of any other state or of the United States of America, in which case the
Issuer will keep in full effect its existence, rights and franchises under the
laws of such other jurisdiction) and will obtain and preserve its qualification
to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the
Notes, the Collateral and each other related instrument or agreement.

     Section 3.05. Protection of Trust.

     The Issuer will from time to time prepare, or cause to be prepared, execute
and deliver all such supplements and amendments hereto and all such financing
statements, continuation statements,

                                      -27-

<PAGE>   34

instruments of further assurance and other instruments, and will take such other
action necessary or advisable to:

     (a) grant more effectively all or any portion of the Collateral as security
for the Notes;

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

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

     (d) enforce any of the Collateral; or

     (e) preserve and defend title to the Collateral securing the Notes and the
rights therein of the Indenture Trustee and the Noteholders secured thereby
against the claims of all persons and parties.

     The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required pursuant to this Section 3.05.

     The Issuer shall pay or cause to be paid any taxes levied on all or any
part of the Receivables securing the Notes.

     Section 3.06. Opinions as to Collateral.

     (a) On the Series Issuance Date relating to any new Series of Notes, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either
stating that, in the opinion of such counsel, such action has been taken to
perfect the lien and security interest of this Indenture, including without
limitation with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with
respect to the execution and filing of any financing statements and continuation
statements, as are so necessary and reciting the details of such action, or
stating that, in the opinion of such counsel, no such action is necessary to
maintain the perfection of such lien and security interest.

     (b) On or before [June 30] in each calendar year, beginning in 2001, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either
stating that, in the opinion of such counsel, such action has been taken to
perfect the lien and security interest of this Indenture, including without
limitation with respect to the recording, filing, re-recording and refiling of
this Indenture, any indentures supplemental hereto and any other requisite
documents and with respect to the execution and filing of any financing
statements and continuation statements as is so necessary and reciting the
details of such action or stating that in the opinion of such counsel no such
action is necessary to maintain the perfection of such lien and security
interest. Such Opinion of Counsel shall also describe the recording, filing,
rerecording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents and the execution and filing of any financing
statements and continuation statements that will, in the opinion of such
counsel, be required to maintain the perfection of the lien and security
interest of this Indenture until [June 30] in the following calendar year.

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<PAGE>   35

     Section 3.07. Performance of Obligations; Servicing of Receivables.

     (a) The Issuer will not take any action and will use its best efforts not
to permit any action to be taken by others that would release any Person from
any of such Person's material covenants or obligations under any instrument or
agreement included in the Collateral or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in this Indenture, the Transfer and Servicing Agreement or
such other instrument or agreement.

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

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the other Transaction Documents and
in the instruments and agreements relating to the Collateral, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of this Indenture and
the Transfer and Servicing Agreement in accordance with and within the time
periods provided for herein and therein. Except as otherwise expressly provided
herein or therein, the Issuer shall not waive, amend, modify, supplement or
terminate any Transaction Document or any provision thereof without the consent
of the Holders of Notes representing 662/3% of the Outstanding Amount of each
adversely affected Series.

     (d) If the Issuer shall have knowledge of the occurrence of a Servicer
Default under the Transfer and Servicing Agreement, the Issuer shall cause the
Indenture Trustee to promptly notify the Rating Agencies thereof, and shall
cause the Indenture Trustee to specify in such notice the action, if any, being
taken with respect to such default. If a Servicer Default shall arise from the
failure of the Servicer to perform any of its duties or obligations under the
Transfer and Servicing Agreement with respect to the Receivables, the Issuer
shall take all reasonable steps available to it to remedy such failure.

     (e) On and after the receipt by the Servicer of a Termination Notice
pursuant to Section 7.01 of the Transfer and Servicing Agreement, the Servicer
shall continue to perform all servicing functions under this Indenture until the
date specified in the Termination Notice or otherwise specified by the Indenture
Trustee or until a date mutually agreed upon by the Servicer and the Indenture
Trustee. As promptly as possible after the giving of a Termination Notice to the
Servicer, the Indenture Trustee shall appoint a Successor Servicer, and such
Successor Servicer shall accept its appointment by a written assumption in a
form acceptable to the Indenture Trustee. In the event that a Successor Servicer
has not been appointed and accepted its appointment at the time when the
Servicer ceases to act as Servicer, the Indenture Trustee without further action
shall automatically be appointed the Successor Servicer. The Indenture Trustee
may delegate any of its servicing obligations to an Affiliate or agent in
accordance with subsection 3.01(b) and Section 5.07 of the Transfer and
Servicing Agreement. Notwithstanding the foregoing, the Indenture Trustee shall,
if it is legally unable so to act, petition at the expense of the Servicer a
court of competent jurisdiction to appoint any established institution
qualifying as an Eligible Servicer as the Successor Servicer hereunder. The
Indenture Trustee shall give prompt notice to each

                                      -29-

<PAGE>   36

Rating Agency and each Series Enhancer upon the appointment of a Successor
Servicer. Upon its appointment, the Successor Servicer shall be the successor in
all respects to the Servicer with respect to servicing functions under this
Indenture and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Servicer by the terms and provisions
hereof, and all references in this Indenture to the Servicer shall be deemed to
refer to the Successor Servicer. In connection with any Termination Notice, the
Indenture Trustee will review any bids which it obtains from Eligible Servicers
and shall be permitted to appoint any Eligible Servicer submitting such a bid as
a Successor Servicer for servicing compensation, subject to the limitations set
forth in Section 7.02 of the Transfer and Servicing Agreement.

     (f) Without derogating from the absolute nature of the assignment granted
to the Indenture Trustee under this Indenture or the rights of the Indenture
Trustee hereunder, the Issuer agrees (i) that it will not, without the prior
written consent of the Indenture Trustee and the Holders of Notes representing
more than 50% of the Outstanding Amount of each Series, amend, modify, waive,
supplement, terminate or surrender, or agree to any amendment, modification,
supplement, termination, waiver or surrender of, the terms of any Collateral
(except to the extent otherwise provided in the Transfer and Servicing
Agreement) or the Transaction Documents (except to the extent otherwise provided
in the Transaction Documents), or waive timely performance or observance by the
Servicer or the Transferor under the Transfer and Servicing Agreement; and (ii)
that any such amendment shall not (A) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, collections of payments on the
Receivables or distributions that are required to be made for the benefit of the
Noteholders or (B) reduce the aforesaid percentage of the Notes that is required
to consent to any such amendment, without the consent of the Holders of all the
Outstanding Notes. If any such amendment, modification, supplement or waiver
shall be so consented to by the Indenture Trustee and such Noteholders, the
Issuer agrees, promptly following a request by the Indenture Trustee to do so,
to execute and deliver, in its own name and at its own expense, such agreements,
instruments, consents and other documents as the Indenture Trustee may deem
necessary or appropriate in the circumstances.

     Section 3.08. Negative Covenants.

     So long as any Notes are Outstanding, the Issuer will not:

     (a) sell, transfer, exchange, or otherwise dispose of any part of the
Collateral unless directed to do so by the Indenture Trustee, except as
expressly permitted by this Indenture and any Indenture Supplement, the
Receivables Purchase Agreement, the Trust Agreement or the Transfer and
Servicing Agreement;

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

     (c) incur, assume, guarantee or otherwise become liable, directly or
indirectly, for any indebtedness other than incurred under the Notes and this
Indenture;

                                      -30-

<PAGE>   37

     (d) (A) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released from
any covenants or obligations with respect to the Notes under this Indenture
except as may be expressly permitted hereby, (B) permit any Lien, charge,
excise, claim, security interest, mortgage or other encumbrance (other than the
lien of this Indenture) to be created on or extend to or otherwise arise upon or
burden the Collateral or any part thereof or any interest therein or the
proceeds thereof or (C) permit the lien of this Indenture not to constitute a
valid first priority security interest in the Collateral; or

     (e) voluntarily dissolve or liquidate in whole or in part.

     Section 3.09. Statements as to Compliance.

     The Issuer will deliver to the Indenture Trustee, within 120 days after the
end of each fiscal year of the Issuer (commencing within 120 days after the end
of the fiscal year 2001), an Officer's Certificate stating, as to the Authorized
Officer signing such Officer's Certificate, that

         (i) a review of the activities of the Issuer during the 12-month period
ending at the end of such fiscal year (or in the case of the fiscal year ending
December 31, 2001, the period from the Closing Date to December 31, 2001) and of
performance under this Indenture has been made under such Authorized Officer's
supervisions, and

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

     Section 3.10. Issuer May Consolidate, Etc., Only on Certain Terms.

     (a) The Issuer shall not consolidate or merge with or into any other
Person, unless:

         (1) the Person (if other than the Issuer) formed by or surviving such
consolidation or merger (the "Surviving Person") (i) is organized and existing
under the laws of the United States of America or any state or the District of
Columbia, (ii) is not subject to regulation as an "investment company" under the
Investment Company Act, (iii) expressly assumes, by an indenture supplemental
hereto, executed and delivered to the Indenture Trustee, in a form satisfactory
to the Indenture Trustee, the obligation to make due and punctual payment of the
principal of and interest on all Notes and the performance of every covenant of
this Indenture on the part of the Issuer to be performed or observed and (iv)
expressly agrees by means of such supplemental indenture to make all filings
with the Commission (and any other appropriate Person) required by the Exchange
Act in connection with the Notes;

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

                                      -31-

<PAGE>   38

         (3) the Issuer shall have delivered to the Indenture Trustee an
Officer's Certificate and an Opinion of Counsel each stating that (i) such
consolidation or merger and such supplemental indenture comply with this Section
3.10, (ii) all conditions precedent in this Section 3.10 relating to such
transaction have been complied with (including any filing required by the
Exchange Act), and (iii) such supplemental indenture is duly authorized,
executed and delivered and is valid, binding and enforceable against the
Surviving Person;

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

         (5) the Issuer shall have received a Tax Opinion and an Opinion of
Counsel dated the date of such consolidation or merger (and shall have delivered
copies thereof to the Indenture Trustee) to the effect that such transaction
will not have any material adverse federal income tax consequence to any
Noteholder; and

         (6) any action that is necessary to maintain the lien and security
interest created by this Indenture shall have been taken.

     (b) The Issuer shall not convey or transfer any of its properties or
assets, including those included in the Collateral, substantially as an entirety
to any Person, unless:

         (1) the Person that acquires by conveyance or transfer the properties
and assets of the Issuer the conveyance or transfer of which is hereby
restricted (the "Acquiring Person") (A) is a United States citizen or a Person
organized and existing under the laws of the United States of America or any
state, or the District of Columbia, (B) expressly assumes, by an indenture
supplemental hereto, executed and delivered to the Indenture Trustee, in form
satisfactory to the Indenture Trustee, the obligation to make due and punctual
payments of the principal of and interest on all Notes and the performance of
every covenant of this Indenture on the part of the Issuer to be performed or
observed, (C) expressly agrees by means of such supplemental indenture that all
right, title and interest so conveyed or transferred shall be subject and
subordinate to the rights of Holders of the Notes, (D) unless otherwise provided
in such supplemental indenture, expressly agrees to indemnify, defend and hold
harmless the Issuer against and from any loss, liability or expense arising
under or related to this Indenture and the Notes, (E) expressly agrees by means
of such supplemental indenture that such Person (or if a group of Persons, then
one specified Person) shall make all filings with the Commission (and any other
appropriate Person) required by the Exchange Act in connection with the Notes
and (F) is not subject to regulation as an "investment company" under the
Investment Company Act.;

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

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

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<PAGE>   39

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

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

         (6) the Issuer shall have delivered to the Indenture Trustee an
Officer's Certificate and an Opinion of Counsel each stating that (i) such
conveyance or transfer and such supplemental indenture comply with this Section
3.10, (ii) all conditions precedent herein provided for relating to such
transaction have been complied with (including any filing required by the
Exchange Act), and (iii) such supplemental indenture is duly authorized,
executed and delivered and is valid, binding and enforceable against the
Acquiring Person.

     Section 3.11. Successor Substituted.

     Upon any consolidation or merger, or any conveyance or transfer of the
properties and assets of the Issuer substantially as an entirety in accordance
with Section 3.10 hereof, the Surviving Person or the Acquiring Person, as the
case may be, shall succeed to, and be substituted for, and may exercise every
right and power of, the Issuer under this Indenture with the same effect as if
such Person had been named as the Issuer herein. In the event of any such
conveyance or transfer, the Person named as the Issuer in the first paragraph of
this Indenture or any successor which shall theretofore have become such in the
manner prescribed in this Section 3.11 shall be released from its obligations
under this Indenture as issued immediately upon the effectiveness of such
conveyance or transfer, provided that the Issuer shall not be released from any
obligations or liabilities to the Indenture Trustee or the Noteholders arising
prior to such effectiveness.

     Section 3.12. No Other Business.

     The Issuer shall not engage in any business other than (i) purchasing,
owning and managing the Trust Estate and the proceeds thereof in the manner
contemplated by this Indenture and the other Transaction Documents, (ii) issuing
and making payments in respect of the Notes and (iii) all activities related
thereto.

     Section 3.13. [Reserved].

     Section 3.14. Servicer's Obligations.

     The Issuer shall cause the Servicer to comply with all of its obligations
under the Transaction Documents.

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<PAGE>   40

     Section 3.15. Investments.

     Except as contemplated by this Indenture or the Transfer and Servicing
Agreement, the Issuer shall not own, purchase, repurchase or acquire (or agree
contingently to do so) any stock, obligations, assets or securities of, or any
other interest in, or make any capital contribution to, any other Person.

     Section 3.16. Capital Expenditures.

     The Issuer shall not make any expenditure (by long-term or operating lease
or otherwise) for capital assets (either realty or personalty).

     Section 3.17. Removal of Administrator.

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

     Section 3.18. Restricted Payments.

     The Issuer shall not, directly or indirectly, (i) pay any dividend or make
any distribution (by reduction of capital or otherwise), whether in cash,
property, securities or a combination thereof, to the Owner Trustee or any owner
of a beneficial interest in the Issuer or otherwise with respect to any
ownership or equity interest or security in or of the Issuer or to the Servicer,
(ii) redeem, purchase, retire or otherwise acquire for value any such ownership
or equity interest or security or (iii) set aside or otherwise segregate any
amounts for any such purpose; provided, however, that the Issuer may make, or
cause to be made, (x) distributions as contemplated by, and to the extent funds
are available for such purpose under, the Transfer and Servicing Agreement or
the Trust Agreement and (y) payments to the Indenture Trustee pursuant to
Section 6.07 hereof. The Issuer will not, directly or indirectly, make payments
to or distributions from the Collection Account except in accordance with the
Transaction Documents.

     Section 3.19. Notice of Events of Default.

     The Issuer agrees to give the Indenture Trustee and the Rating Agencies
prompt written notice of each Event of Default hereunder and, immediately after
obtaining knowledge of any of the following occurrences, written notice of each
default on the part of the Servicer or the Transferor of its obligations under
the Transfer and Servicing Agreement and each default on the part of a Seller of
its obligations under the Receivables Purchase Agreement, as applicable.

     Section 3.20. Further Instruments and Acts.

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

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<PAGE>   41

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

     Section 4.01. Satisfaction and Discharge of this Indenture.

     This Indenture shall cease to be of further effect with respect to the
Notes except as to (a) rights of registration of transfer and exchange, (b)
substitution of mutilated, destroyed, lost or stolen Notes, (c) the rights of
Noteholders to receive payments of principal thereof and interest thereon, (d)
Sections 3.03, 3.07, 3.08, 3.11, 3.12 and 12.16, (e) the rights and immunities
of the Indenture Trustee hereunder, including the rights of the Indenture
Trustee under Section 6.07, and the obligations of the Indenture Trustee under
Section 4.02, and (f) the rights of Noteholders as beneficiaries hereof with
respect to the property so deposited with the Indenture Trustee and payable to
all or any of them, and the Indenture Trustee, on demand of and at the expense
of the Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes when:

         (i) either

               (A) all Notes theretofore authenticated and delivered (other than
(1) Notes which have been destroyed, lost or stolen and which have been
replaced, or paid as provided in Section 2.06, and (2) Notes for whose full
payment money has theretofore been deposited in trust or segregated and held in
trust by the Issuer and thereafter repaid to the Issuer or discharged from such
trust, as provided in Section 3.03) have been delivered to the Indenture Trustee
for cancellation; or

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

                  (1) have become due and payable;

                  (2) will become due and payable at the Series Termination Date
for such Class or Series of Notes; or

                  (3) are to be called for redemption within one year under
arrangements satisfactory to the Indenture Trustee for the giving of notice of
redemption by the Indenture Trustee in the name, and at the expense, of the
Issuer;

                  (4) and the Issuer, in the case of (1), (2) or (3) above, has
irrevocably deposited or caused to be irrevocably deposited with the Indenture
Trustee cash or direct obligations of or obligations guaranteed by the United
States of America (which will mature prior to the date such amounts are
payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore delivered to the
Indenture Trustee for cancellation when due at the Series Termination Date for
such Class or Series of Notes or the Redemption Date (if Notes shall have been
called for redemption pursuant to the related Indenture Supplement), as the case
may be;

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<PAGE>   42

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

         (iii) the Issuer has delivered to the Indenture Trustee an Officer's
Certificate, an Opinion of Counsel and (if required by the TIA or the Indenture
Trustee) an Independent Certificate from a firm of certified public accountants,
each meeting the applicable requirements of Section 12.01(a) and each stating
that all conditions precedent herein provided for relating to the satisfaction
and discharge of this Indenture have been complied with.

     Section 4.02. Application of Trust Money.

     All monies deposited with the Indenture Trustee pursuant to Section 4.01
hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes, this Indenture and the applicable Indenture Supplement,
to make payments, either directly or through any Paying Agent, as the Indenture
Trustee may determine, to the Noteholders and for the payment in respect of
which such monies have been deposited with the Indenture Trustee, of all sums
due and to become due thereon for principal and interest; but such monies need
not be segregated from other funds except to the extent required herein or in
the Transfer and Servicing Agreement or required by law.

                                    ARTICLE V

                      PAY OUT EVENTS, DEFAULTS AND REMEDIES

     Section 5.01. Pay Out Events.

     If any one of the following events (each, a "Trust Pay Out Event") shall
occur:

     (a) the occurrence of a Servicer Default which would have an Adverse
Effect;

     (b) the occurrence of an Insolvency Event relating to the Transferor;

     (c) a Transfer Restriction Event shall occur; or

     (d) the Trust shall become subject to regulation by the Commission as an
"investment company" within the meaning of the Investment Company Act;

then a Pay Out Event with respect to all Series of Notes shall occur without any
notice or other action on the part of the Indenture Trustee or the Noteholders
immediately upon the occurrence of such event.

     Upon the occurrence of a Pay Out Event, an Amortization Period or, if
specified in the related Indenture Supplement, an Accumulation Period, shall
commence and payment on the Notes of each Series will be made in accordance with
the terms of the related Indenture Supplement.

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<PAGE>   43

     Section 5.02. Events of Default.

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

     (a) default in the payment of the principal of any Note of that Series, if
and to the extent not previously paid, when the same becomes due and payable on
its Series Termination Date; or

     (b) default in the payment of any interest on any Note of that Series when
the same becomes due and payable, and such default shall continue for a period
of thirty-five (35) days; or

     (c) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Issuer in an involuntary case
under any applicable federal or state bankruptcy, insolvency or other similar
law now or hereafter in effect, or appointing a receiver, conservator,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
the Issuer or ordering the winding-up or liquidation of the Issuer's affairs,
and such decree or order shall remain unstayed and in effect for a period of
sixty (60) consecutive days; or

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

     (e) default in the observance or performance of any covenant or agreement
of the Issuer made in this Indenture made in respect of the Notes of such Series
(other than a covenant or agreement, a default in the observance or performance
of which is elsewhere in this Section 5.02 specifically dealt with) (all of such
covenants and agreements in the Indenture which are not expressly stated to be
for the benefit of a particular Series being deemed to be in respect of the
Notes of all Series for this purpose) and such default shall continue or not be
cured for a period of sixty (60) days after there shall have been given, by
registered or certified mail, return receipt requested to the Issuer by the
Indenture Trustee or to the Issuer and the Indenture Trustee by the Holders of
Notes representing at least 25% of the Outstanding Amount of all Series, a
written notice specifying such default and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder and, as a result of
such default, the interests of the Holders of the Notes are materially and
adversely affected and continue to be materially and adversely affected during
the 60-day period; or

     (f) any additional events specified in the Indenture Supplement related to
such Series.

                                      -37-

<PAGE>   44

     The Issuer shall deliver to the Indenture Trustee, within five (5) days
after the occurrence thereof, written notice in the form of an Officer's
Certificate of any event which with the giving of notice and the lapse of time
would become an Event of Default, its status and what action the Issuer is
taking or proposes to take with respect thereto.

     Section 5.03. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default described in paragraph (a), (b) or (e) of Section
5.02 should occur and be continuing with respect to a Series, then and in every
such case the Indenture Trustee or the Holders of Notes representing more than
50% of the Outstanding Amount of such Series may declare all the Notes of such
Series to be immediately due and payable, by a notice in writing to the Issuer
(and to the Indenture Trustee if declared by Noteholders), and upon any such
declaration the unpaid principal amount of such Notes, together with accrued and
unpaid interest thereon through the date of acceleration, shall become
immediately due and payable.

     If an Event of Default described in paragraph (c) or (d) of Section 5.02
should occur and be continuing, then the unpaid principal of the Notes, together
with accrued and unpaid interest thereon through the date of acceleration, shall
automatically become due and payable.

     At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, the
Holders of Notes representing more than 50% of the Outstanding Amount of such
Series, by written notice to the Issuer and the Indenture Trustee, may rescind
and annul such declaration and its consequences.

     No such rescission shall affect any subsequent default or impair any right
consequent thereto.

     Section 5.04. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

     (a) The Issuer covenants that if (i) default is made in the payment of any
interest on any Note when the same becomes due and payable, and such default
continues for a period of thirty-five (35) days following the date on which such
interest became due and payable, or (ii) default is made in the payment of
principal of any Note, if and to the extent not previously paid, when the same
becomes due and payable on the Series Termination Date, the Issuer will, upon
demand of the Indenture Trustee, pay to it, for the benefit of the Holders of
the Notes of the affected Series, the whole amount then due and payable on such
Notes for principal and interest, with interest upon the overdue principal, and,
to the extent payment at such rate of interest shall be legally enforceable,
interest upon overdue installments of interest, at the applicable Note Interest
Rate borne by the Notes of such Series, and in addition thereto will pay such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee and its agents and counsel.

     (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding for the collection of the sums so due and
unpaid, and may prosecute such Proceeding to judgment or final decree,

                                      -38-

<PAGE>   45

and may enforce the same against the Issuer or other obligor upon such Notes and
collect in the manner provided by law out of the property of the Issuer or other
obligor upon such Notes, wherever situated, the moneys adjudged or decreed to be
payable.

     (c) If an Event of Default occurs and is continuing, the Indenture Trustee
may, as more particularly provided in Section 5.05, in its discretion, proceed
to protect and enforce its rights and the rights of the Noteholders of the
affected Series, by such appropriate Proceedings as the Indenture Trustee shall
deem most effective to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy
or legal or equitable right vested in the Indenture Trustee by this Indenture or
by law.

     (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes of the affected Series, or any Person having or claiming
an ownership interest in the Collateral, Proceedings under Title 11 of the
United States Code or any other applicable federal or state bankruptcy,
insolvency or other similar law now or hereafter in effect, or in case a
receiver, conservator, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator, custodian or other similar official shall have been
appointed for or taken possession of the Issuer or its property or such other
obligor or Person, or in case of any other comparable judicial Proceedings
relative to the Issuer or other obligor upon the Notes of such Series, or to the
creditors or property of the Issuer or such other obligor, the Indenture
Trustee, irrespective of whether the principal of any Notes shall then be due
and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Indenture Trustee shall have made any demand pursuant to the
provisions of this Section 5.04, shall be entitled and empowered, by
intervention in such Proceedings or otherwise:

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

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

         (iii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute all amounts received with
respect to the claims of the Noteholders of such Series and of the Indenture
Trustee on their behalf; and

         (iv) to file such proofs of claim and other papers or documents as may
be necessary or advisable in order to have the claims of the Indenture Trustee
or the Holders of Notes of such Series allowed in any judicial Proceedings
relative to the Issuer, its creditors and its property;

                                      -39-

<PAGE>   46

     and any trustee, receiver, conservator, liquidator, custodian, assignee,
sequestrator or other similar official in any such Proceeding is hereby
authorized by each of such Noteholders to make payments to the Indenture
Trustee, and, in the event that the Indenture Trustee shall consent to the
making of payments directly to such Noteholders, to pay to the Indenture Trustee
such amounts as shall be sufficient to cover reasonable compensation to the
Indenture Trustee, each predecessor Indenture Trustee and their respective
agents, attorneys and counsel, and all other expenses and liabilities incurred,
and all advances made, by the Indenture Trustee and each predecessor Indenture
Trustee except as a result of negligence or bad faith.

     (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

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

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

     Section 5.05. Remedies; Priorities.

     (a) If an Event of Default shall have occurred and be continuing with
respect to any Series, and the Notes of such Series have been accelerated
pursuant to Section 5.03, the Indenture Trustee may do one or more of the
following (subject to Sections 5.06 and 12.16):

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

         (ii) take any other appropriate action to protect and enforce the
rights and remedies of the Indenture Trustee and the Holders of the Notes of the
affected Series;

         (iii) (A) at its own election, institute Proceedings from time to time
for the complete or partial foreclosure of the portion of the Collateral which
secures such Series of Notes by causing the Trust to issue a Foreclosure
Certificate to the Holders of such Notes, (B) at its own election, institute

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<PAGE>   47

Proceedings from time to time for the complete or partial foreclosure of the
portion of the Collateral which secures such Series of Notes by causing the
Trust to issue a Foreclosure Certificate to a third party selected by the
Indenture Trustee, but only if the Indenture Trustee determines that the
proceeds of the issuance of the Foreclosure Certificate to such third party will
be sufficient to pay principal of and interest on such Notes in full, and (C) at
the direction of the Holders of Notes representing more than 50% of the
Outstanding Amount of the affected Series, institute Proceedings from time to
time for the complete or partial foreclosure of the portion of the Collateral
which secures such Seies of Notes by causing the Trust to issue a Foreclosure
Certificate to the Holders of such Notes or to one or more third parties
selected by the Holders of Notes representing more than 50% of the Outstanding
Amount of the affected Series (each, a "Foreclosure Remedy");

provided, however, that the Indenture Trustee may not exercise the remedy
described in subparagraph (iii) above unless (A) (1) the Holders of Notes
representing 100% of the Outstanding Amount of the affected Series consent
thereto, (2) the Indenture Trustee determines that any proceeds of such exercise
distributable to the Noteholders of the affected Series are sufficient to
discharge in full all amounts then due and unpaid upon the Notes for principal
and interest or (3) the Indenture Trustee determines that the Collateral may not
continue to provide sufficient funds for the payment of principal of and
interest on the Notes as they would have become due if the Notes had not been
declared due and payable, and the Indenture Trustee obtains the consent of the
Holders of Notes representing at least 66-2/3% of the Outstanding Amount of each
Class of such Series and (B) the Indenture Trustee has obtained an Opinion of
Counsel to the effect that the exercise of such remedy (1) will not cause the
Trust or any portion thereof to be deemed to be an association (or publicly
traded partnership) taxable as a corporation for federal income tax purposes and
(2) complies with applicable federal and state securities laws. In determining
such sufficiency or insufficiency with respect to clause (A)(1) and (2), the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the
Collateral for such purpose.

         The remedies provided in this Section 5.05(a) are the exclusive
remedies provided to the Noteholders with respect to the Collateral and each of
the Noteholders (by their acceptance of their respective interests in the Notes)
or the Indenture Trustee hereby expressly waive any other remedy that might have
been available under the applicable UCC.

     (b) The Indenture Trustee may, upon notification to the Issuer, fix a
record date and payment date for any payment to Noteholders of the affected
Series pursuant to this Section 5.05. At least fifteen (15) days before such
record date, the Indenture Trustee shall mail or send by facsimile to each such
Noteholder a notice that states the record date, the payment date and the amount
to be paid.

     Section 5.06. Optional Preservation of the Collateral.

     If the Notes of any Series have been declared to be due and payable under
Section 5.03 following an Event of Default and such declaration and its
consequences have not been rescinded and annulled, and the Indenture Trustee has
not received directions from the Noteholders pursuant to Section 5.12, the
Indenture Trustee may, but need not, elect to maintain possession of the portion
of the Collateral which secures such Notes and apply proceeds of the Collateral
to make payments on such Notes to the extent

                                      -41-

<PAGE>   48

such proceeds are available therefor. It is the desire of the parties hereto and
the Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Notes, and the Indenture Trustee shall take
such desire into account when determining whether or not to maintain possession
of the Collateral. In determining whether to maintain possession of the
Collateral, the Indenture Trustee may, but need not, obtain and rely upon an
opinion of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Estate for such purpose.

     Section 5.07. Limitation on Suits.

     No Noteholder shall have any right to institute any proceedings, judicial
or otherwise, with respect to this Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:

     (a) the Holders of Notes representing not less than 25% of the Outstanding
Amount of any affected Series have made written request to the Indenture Trustee
to institute such proceeding in its own name as indenture trustee;

     (b) such Noteholder or Noteholders has previously given written notice to
the Indenture Trustee of a continuing Event of Default;

     (c) such Noteholder or Noteholders has offered to the Indenture Trustee
reasonable indemnity against the costs, expenses and liabilities to be incurred
in compliance with such request;

     (d) the Indenture Trustee for sixty (60) days after its receipt of such
request and offer of indemnity has failed to institute any such Proceeding; and

     (e) no direction inconsistent with such written request has been given to
the Indenture Trustee during such 60-day period by the Holders of Notes
representing more than 50% of the Outstanding Amount of such Series;

it being understood and intended that no one or more Noteholders of the affected
Series shall have any right in any manner whatever by virtue of, or by availing
of, any provision of this Indenture to affect, disturb or prejudice the rights
of any other Noteholders of such Series or to obtain or to seek to obtain
priority or preference over any other Noteholders of such Series or to enforce
any right under this Indenture, except in the manner herein provided .

     In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two (2) or more groups of Noteholders
of such affected Series, each representing no more than 50% of the Outstanding
Amount of such Series, the Indenture Trustee in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other
provisions of this Indenture.

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<PAGE>   49

     Section 5.08. Unconditional Rights of Noteholders to Receive Principal and
Interest.

     Notwithstanding any other provision in this Indenture, each Noteholder
shall have the right which is absolute and unconditional to receive payment of
the principal of and interest in respect of such Note as such principal and
interest becomes due and payable and to institute suit for the enforcement of
any such payment, and such right shall not be impaired without the consent of
such Noteholder.

     Section 5.09. Restoration of Rights and Remedies.

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

     Section 5.10. Rights and Remedies Cumulative.

     No right, remedy, power or privilege herein conferred upon or reserved to
the Indenture Trustee or to the Noteholders is intended to be exclusive of any
other right, remedy, power or privilege, and every right, remedy, power or
privilege shall, to the extent permitted by law, be cumulative and in addition
to every other right, remedy, power or privilege given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or exercise
of any right or remedy shall not preclude any other further assertion or the
exercise of any other appropriate right or remedy.

     Section 5.11. Delay or Omission Not Waiver.

     No failure to exercise and no delay in exercising, on the part of the
Indenture Trustee or of any Noteholder or other Person, any right or remedy
occurring hereunder upon any Event of Default shall impair any such right or
remedy or constitute a waiver thereof of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

     Section 5.12. Rights of Noteholders to Direct Indenture Trustee.

     The Holders of Notes representing more than 50% of the Outstanding Amount
of any affected Series (or the Holders of Notes representing at least 66-2/3% of
the Outstanding Amount of any affected Series if an Event of Default has
occurred and is continuing) shall have the right to direct the time, method and
place of conducting any Proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee with respect to the Notes; provided, however, that subject
to Section 6.01:

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<PAGE>   50

     (a) Indenture Trustee shall have the right to decline any such direction if
the Indenture Trustee, after being advised by counsel, determines that the
action so directed is in conflict with any rule of law or with this Indenture,
and

     (b) the Indenture Trustee shall have the right to decline any such
direction if the Indenture Trustee in good faith shall, by a Responsible Officer
of the Indenture Trustee, determine that the Proceedings so directed would be
illegal or involve the Indenture Trustee in personal liability or be unjustly
prejudicial to the Noteholders not parties to such direction.

     Section 5.13. Waiver of Past Defaults.

     Prior to the declaration of the acceleration of the maturity of the Notes
of the affected Series as provided in Section 5.03, Holders of Notes
representing more than 50% of the Outstanding Amount of the Notes of such Series
may, on behalf of all such Noteholders, waive in writing any past default with
respect to such Notes and its consequences, except a default:

     (a) in the payment of the principal or interest in respect of any Note of
such Series, or

     (b) in respect of a covenant or provision hereof that under Section 10.02
hereof cannot be modified or amended without the consent of the Noteholder of
each Outstanding Note affected.

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

     Section 5.14. Undertaking for Costs.

     All parties to this Indenture agree, and each Noteholder by its acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Indenture Trustee for any action taken,
suffered or omitted by it as Indenture Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such
court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section 5.14 shall not apply to any suit instituted
by the Indenture Trustee, to any suit instituted by any Noteholder, or group of
Noteholders (in compliance with Section 5.08 hereof), holding Notes representing
more than 10% of the Outstanding Amount of the affected Series, or to any suit
instituted by any Noteholder for the enforcement of the payment of the principal
or interest in respect of any Note on or after the Payment Date on which any of
such amounts was due (or, in the case of redemption, on or after the applicable
Redemption Date).

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<PAGE>   51

     Section 5.15. Waiver of Stay or Extension Laws.

     The Issuer covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may adversely affect the covenants
or the performance of this Indenture; and the Issuer (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

     Section 5.16. Action on Notes.

     The Indenture Trustee's right to seek and recover judgment on the Notes or
under this Indenture shall not be affected by the seeking or obtaining of or
application for any other relief under or with respect to this Indenture.
Neither the lien of this Indenture nor any rights or remedies of the Indenture
Trustee or the Noteholders shall be impaired by the recovery of any judgment by
the Indenture Trustee against the Issuer or by the levy of any execution under
such judgment upon any portion of the Collateral or upon any of the assets of
the Issuer. Any money or property collected by the Indenture Trustee shall be
applied as specified in the applicable Indenture Supplement.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

     Section 6.01. Duties of the Indenture Trustee.

     (a) If an Event of Default has occurred and is continuing and a Trustee
Officer shall have actual knowledge or written notice of such Event of Default,
the Indenture Trustee shall, prior to the receipt of directions, if any, from
the Holders of Notes representing not less than 662/3% of the Outstanding Amount
of the affected Series, exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

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

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

         (ii) in the absence of bad faith or negligence on its part, the
Indenture Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Indenture Trustee and conforming to the requirements of this
Indenture; provided, however, the Indenture Trustee, upon receipt of any
resolutions, certificates, statements, opinions, reports, documents, orders or
other instruments furnished to the Indenture Trustee which are specifically
required to be furnished pursuant to any provision of this Indenture or any

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<PAGE>   52

Indenture Supplement, shall examine them to determine whether they substantially
conform to the requirements of this Indenture or any Indenture Supplement. The
Indenture Trustee shall give prompt written notice to the Noteholders and each
Rating Agency of any material lack of conformity of any such instrument to the
applicable requirements of this Indenture or any Indenture Supplement discovered
by the Indenture Trustee which would entitle the Holders of Notes representing
more than 50% of the Outstanding Amount to take any action pursuant to this
Indenture or any Indenture Supplement.

     (c) In case a Pay Out Event has occurred and is continuing and a Trustee
Officer shall have actual knowledge or written notice of such Pay Out Event, the
Indenture Trustee shall, prior to the receipt of directions, if any, from the
Holders of Notes representing more than 50% of the Outstanding Amount of the
affected Series, exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

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

         (i) this subsection (d) shall not be construed to limit the effect of
subsection (a) of this Section 6.01;

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

         (iii) the Indenture Trustee shall not be liable with respect to any
action taken, suffered or omitted to be taken by it in good faith in accordance
with the Indenture and/or the direction of the Holders of Notes representing
more than 50% of the Outstanding Amount of each Series relating to the time,
method and place of conducting any proceeding for any remedy available to the
Indenture Trustee, or for exercising any trust or power conferred upon the
Indenture Trustee, under this Indenture. The Indenture Trustee shall not be
liable for any action taken, suffered or omitted to be taken by it in good faith
in accordance with the direction of the Servicer, the Transferor or the Trust in
compliance with the terms of this Indenture or any Indenture Supplement.

     (e) No provision of this Indenture shall require the Indenture 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
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

     (f) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to subsections (a), (b), (c) and (d) of this
Section 6.01.

     (g) Except as expressly provided in this Indenture, the Indenture Trustee
shall have no power to vary the Collateral, including, without limitation, by
(i) accepting any substitute payment obligation

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<PAGE>   53

for a Receivable initially transferred to the Trust under the Transfer and
Servicing Agreement, (ii) adding any other investment, obligation or security to
the Trust or (iii) withdrawing from the Trust any Receivable (except as
otherwise provided in the Transfer and Servicing Agreement).

     (h) The Indenture Trustee shall have no responsibility or liability for
investment losses on Eligible Investments (other than Eligible Investments on
which the institution acting as Indenture Trustee is an obligor).

     (i) The Indenture Trustee shall notify each Rating Agency (i) of any change
in any rating of the Notes by any other Rating Agency of which the Indenture
Trustee has actual knowledge, (ii) immediately of the occurrence of any Event of
Default or Pay Out Event of which the Indenture Trustee has actual knowledge and
any potential Event of Default or Pay Out Event of which the Indenture Trustee
has actual notice from the Servicer and (iii) monthly that no Events of Default
have occurred and are continuing.

     (j) For all purposes under this Indenture, the Indenture Trustee shall not
be deemed to have notice or knowledge of any Event of Default, Pay Out Event or
Servicer Default unless a Trustee Officer assigned to and working in the
Corporate Trust Office of the Indenture Trustee has actual knowledge thereof or
has received written notice thereof. For purposes of determining the Indenture
Trustee's responsibility and liability hereunder, any reference to an Event of
Default, Pay Out Event or Servicer Default shall be construed to refer only to
such event of which the Indenture Trustee is deemed to have notice as described
in this subsection 6.01(j).

     Section 6.02. Notice of Pay Out Event or Event of Default.

     Upon the occurrence of any Pay Out Event or Event of Default of which a
Trustee Officer has actual knowledge or has received notice thereof, the
Indenture Trustee shall transmit by mail to all Noteholders as their names and
addresses appear on the Note Register and the Rating Agencies, notice of such
Pay Out Event or Event of Default hereunder known to the Indenture Trustee
within thirty (30) days after it occurs or within ten (10) Business Days after
it receives such notice or obtains actual notice, if later.

     Section 6.03. Rights of Indenture Trustee.

     Except as otherwise provided in Section 6.01 hereof:

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

     (b) Whenever in the administration of this Indenture the Indenture Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Indenture Trustee (unless other
evidence is specifically prescribed herein) may, in the absence of bad faith on
its part, rely upon an Officer's Certificate of the Issuer. The Issuer shall
provide a copy of such

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<PAGE>   54

Officer's Certificate to the Noteholders at or prior to the time the Indenture
Trustee receives such Officer's Certificate;

     (c) As a condition to the taking, suffering or omitting of any action by it
hereunder, the Indenture Trustee may consult with counsel and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in-good faith and in reliance thereon;

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

     (e) The Indenture Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
note or other paper or document, but the Indenture Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Indenture Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records and
premises of the Issuer and the Servicer, personally or by agent or attorney;

     (f) The Indenture Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents,
attorneys, custodians or nominees and the Indenture Trustee shall not be
responsible for any (i) misconduct or negligence on the part of any agent,
attorney, custodians or nominees appointed with due care by it hereunder or (ii)
the supervision of such agents, attorneys, custodians or nominees after such
appointment with due care;

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

     (h) In the event that the Indenture Trustee is also acting as Paying Agent
and Transfer Agent and Registrar, the rights and protections afforded to the
Indenture Trustee pursuant to this Article VI shall also be afforded to such
Paying Agent and Transfer Agent and Registrar.

     Section 6.04. Not Responsible for Recitals or Issuance of Notes.

     The recitals contained herein and in the Notes, except the certificate of
authentication of the Indenture Trustee, shall be taken as the statements of the
Issuer, and the Indenture Trustee assumes no responsibility for their
correctness. The Indenture Trustee makes no representation as to the validity or
sufficiency of the Agreement, the Notes, or any related document. The Indenture
Trustee shall not be accountable for the use or application by the Issuer of the
proceeds from the Notes.

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<PAGE>   55

     Section 6.05. May Hold Notes.

     The Indenture Trustee, any Paying Agent, Transfer Agent and Registrar or
any other agent of the Issuer, in its individual or any other capacity, may
become the owner or pledgee of Notes and may otherwise deal with the Issuer with
the same rights it would have if it were not Indenture Trustee, Paying Agent,
Transfer Agent and Registrar or such other agent.

     Section 6.06. Money Held in Trust.

     Money held by the Indenture Trustee in trust hereunder need not be
segregated from other funds held by the Indenture Trustee in trust hereunder
except to the extent required herein or required by law. The Indenture Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed upon in writing by the Indenture Trustee and the
Issuer.

     Section 6.07. Compensation, Reimbursement and Indemnification.

     The Servicer shall pay to the Indenture Trustee from time to time
reasonable compensation for all services rendered by the Indenture Trustee under
this Agreement (which compensation shall not be limited by any law on
compensation of a trustee of an express trust). The Servicer shall reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee's agents, counsel,
accountants and experts. Pursuant to the Transfer and Servicing Agreement, the
Issuer shall direct the Servicer to indemnify and the Servicer shall indemnify
the Indenture Trustee against any and all loss, liability or expense (including
the fees of either in-house counsel or outside counsel, but not both) incurred
by it in connection with the administration of this trust and the performance of
its duties hereunder. The Indenture Trustee shall notify the Issuer and the
Servicer promptly of any claim for which it may seek indemnity. Failure by the
Indenture Trustee to so notify the Issuer and the Servicer shall not relieve the
Issuer or the Servicer of its obligations hereunder unless such loss, liability
or expense could have been avoided with such prompt notification and then only
to the extent of such loss, expense or liability which could have been so
avoided. The Servicer shall defend any claim against the Indenture Trustee, the
Indenture Trustee may have separate counsel and, if it does, the Servicer shall
pay the fees and expenses of such counsel. Neither the Issuer nor the Servicer
need reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

     The Servicer's payment obligations to the Indenture Trustee pursuant to
this Section 6.07 shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
subsection 5.02(c) or (d) with respect to the Issuer, the expenses are intended
to constitute expenses of administration under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or similar
law.

     Notwithstanding anything herein to the contrary, the Indenture Trustee's
right to enforce any of the Servicer's payment obligations pursuant to this
Section 6.07 shall be subject to the provisions of Section 12.16.

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<PAGE>   56

     Section 6.08. Replacement of Indenture Trustee.

     No resignation or removal of the Indenture Trustee and no appointment of a
successor Indenture Trustee shall become effective until the acceptance of
appointment by the successor Indenture Trustee pursuant to this Section 6.08.
The Indenture Trustee may resign at any time by giving thirty (30) days written
notice to the Issuer. The Holders of Notes representing more than 50% of the
Outstanding Amount of all Series may remove the Indenture Trustee by so
notifying the Indenture Trustee and may appoint a successor Indenture Trustee.
The [Administrator] shall remove the Indenture Trustee if:

         (i) the Indenture Trustee fails to comply with Section 6.11;

         (ii) the Indenture Trustee is adjudged a bankrupt or insolvent;

         (iii) a receiver of the Indenture Trustee or of its property shall be
appointed, or any public officer takes charge of the Indenture Trustee or its
property or its affairs for the purpose of rehabilitation, conservation or
liquidation; or

         (iv) the Indenture Trustee otherwise becomes legally unable to act. If
the Indenture Trustee resigns or is removed or if a vacancy exists in the office
of Indenture Trustee for any reason (the Indenture Trustee in such event being
referred to herein as the retiring Indenture Trustee), the [Administrator] shall
promptly appoint a successor Indenture Trustee.

     A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, the Administrator and to the
Issuer. Thereupon the resignation or removal of the retiring Indenture Trustee
shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the Indenture Trustee under this Indenture. The
successor Indenture Trustee shall mail a notice of its succession to
Noteholders. The retiring Indenture Trustee shall promptly transfer all property
held by it as Indenture Trustee to the successor Indenture Trustee.

     If a successor Indenture Trustee does not take office within sixty (60)
days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Holders of Notes representing more than 50%
of the Outstanding Amount of all Series may petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee.

     If the Indenture Trustee fails to comply with Section 6.11, any Noteholder
may petition any court of competent jurisdiction for the removal of the
Indenture Trustee and the appointment of a successor Indenture Trustee.

     Notwithstanding the replacement of the Indenture Trustee pursuant to this
Section 6.08, the Issuer's obligations under Section 6.07 shall continue for the
benefit of the retiring Indenture Trustee.

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<PAGE>   57

     Section 6.09. Successor Indenture Trustee by Merger.

     If the Indenture Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or
transferee corporation without any further act shall be the successor Indenture
Trustee; provided that such corporation or banking association shall be
otherwise qualified and eligible under Section 6.11. The Indenture Trustee shall
provide the Rating Agencies prior written notice of any such transaction.

     In case at the time such successor or successors by merger, conversion,
consolidation or transfer to the Indenture Trustee shall succeed to the trusts
created by this Indenture any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor Indenture Trustee and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes in the name of the successor to the Indenture Trustee; and in all such
cases such certificates shall have the full force which it is anywhere in the
Notes or in this Indenture provided that the certificate of the Indenture
Trustee shall have.

     Section 6.10. Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

     (a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Collateral may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-trustee or co-trustees, or separate trustee or
separate trustees, of all or any part of the Collateral, and to vest in such
Person or Persons, in such capacity and for the benefit of the Noteholders, such
title to the Collateral, or any part hereof, and, subject to the other
provisions of this Section 6.10, such powers, duties, obligations, rights and
trusts as the Indenture Trustee may consider necessary or desirable. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 and no notice to
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.08 hereof.

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

         (i) all rights, powers, duties and obligations conferred or imposed
upon the Indenture Trustee shall be conferred or imposed upon and exercised or
performed by the Indenture Trustee and such separate trustee or co-trustee
jointly (it being understood that such separate trustee or co-trustee is not
authorized to act separately without the Indenture Trustee joining in such act),
except to the extent that under any law of any jurisdiction in which any
particular act or acts are to be performed the Indenture Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such
rights, powers, duties and obligations (including the holding of title to the
Collateral or any portion thereof in any such jurisdiction) shall be exercised
and performed singly by such separate trustee or co-trustee, but solely at the
direction of the Indenture Trustee;

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<PAGE>   58

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

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

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

     (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect of
this Indenture on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

     Section 6.11. Eligibility; Disqualification.

     The Indenture Trustee shall at all times satisfy the requirements of TIA
Section310(a). The Indenture Trustee shall have a combined capital and surplus
of at least $50,000,000 as set forth in its most recent published annual report
of condition and its long-term unsecured debt shall be rated at least Baa3 by
Moody's and BBB- by Standard & Poor's. The Indenture Trustee shall comply with
TIA Section310(b), including the optional provision permitted by the second
sentence of TIA Section310(b)(9); provided, however, that there shall be
excluded from the operation of TIA Section310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA Section310(b)(1) are met.

     Section 6.12. Preferential Collection of Claims Against.

     The Indenture Trustee shall comply with TIA Section311(a), excluding any
creditor relationship listed in TIA Section311(b). An Indenture Trustee who has
resigned or been removed shall be subject to TIA Section311(a) to the extent
indicated.

     Section 6.13. Tax Returns.

     In the event the Trust shall be required to file tax returns, the Issuer
shall prepare or shall cause to be prepared such tax returns and shall provide
such tax returns to the Owner Trustee for signature at least five (5) days
before such tax returns are due to be filed. The Issuer, in accordance with the
terms

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<PAGE>   59

of each Indenture Supplement, shall also prepare or shall cause to be prepared
all tax information required by law to be distributed to Noteholders and shall
deliver such information to the Owner Trustee at least five (5) days prior to
the date it is required by law to be distributed to Noteholders. The Owner
Trustee, upon request, will furnish the Issuer with all such information known
to the Owner Trustee as may be reasonably required in connection with the
preparation of all tax returns of the Trust, and shall, upon request, execute
such returns. In no event shall the Owner Trustee be liable for any liabilities,
costs or expenses of the Trust or any Noteholder arising under any tax law,
including without limitation, federal, state or local income or excise taxes or
any other tax imposed on or measured by income (or any interest or penalty with
respect thereto arising from a failure to comply therewith).

     Section 6.14. Representations and Covenants of the Indenture Trustee.

     The Indenture Trustee represents, warrants and covenants that:

         (i) the Indenture Trustee is a banking corporation duly organized and
validly existing under the laws of the State of New York;

         (ii) The Indenture Trustee has full power and authority to deliver and
perform this Indenture and has taken all necessary action to authorize the
execution, delivery and performance by it of this Indenture and other
Transaction Documents to which it is a party; and

         (iii) Each of this Indenture and the other Transaction Documents to
which it is a party has been duly executed and delivered by the Indenture
Trustee and constitutes its legal, valid and binding obligation in accordance
with its terms.

     Section 6.15. Custody of the Collateral.

     The Indenture Trustee shall hold such of the Trust Estate as consists of
instruments, deposit accounts, negotiable documents, money, goods, letters of
credit, and advices of credit in the State of New York. The Indenture Trustee
shall hold such of the Trust Estate as constitutes investment property through a
securities intermediary, which securities intermediary shall agree with the
Indenture Trustee that (a) such investment property shall at all times be
credited to a securities account of the Indenture Trustee, (b) such securities
intermediary shall treat the Indenture Trustee as entitled to exercise the
rights that comprise each financial asset credited to such securities account,
(c) all property credited to such securities account shall be treated as
financial assets, (d) such securities intermediary shall comply with entitlement
orders originated by the Indenture Trustee without the further consent of any
other person or entity, (e) such securities intermediary will not agree with any
person or entity other than the Indenture Trustee to comply with entitlement
orders originated by such other person or entity, (f) such securities accounts
and the property credited thereto shall not be subject to any lien, security
interest, or right of set-off in favor of such securities intermediary or anyone
claiming through it (other than the Indenture Trustee), and (g) such agreement
shall be governed by the laws of the State of New York. Terms used in the
preceding sentence that are defined in the New York UCC and not otherwise
defined herein shall have the meaning set forth in the New York UCC. Except as
permitted by this Section 6.15, the Indenture Trustee shall not hold any part of
the Trust Estate through an agent or a nominee.

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<PAGE>   60

                                   ARTICLE VII

          NOTEHOLDERS' LIST AND REPORTS BY INDENTURE TRUSTEE AND ISSUER

     Section 7.01. Issuer to Furnish Indenture Trustee Names and Addresses of
Noteholders.

     The Issuer will furnish or cause to be furnished to the Indenture Trustee
(a) upon each transfer of a Note, a list, in such form as the Indenture Trustee
may reasonably require, of the names, addresses and taxpayer identification
numbers of the Noteholders as they appear on the Note Register as of such Record
Date, and (b) at such other times, as the Indenture Trustee may request in
writing, within ten (10) days after receipt by the Issuer of any such request, a
list of similar form and content as of a date not more than ten (10) days prior
to the time such list is furnished; provided, however, that for so long as the
Indenture Trustee is the Transfer Agent and Registrar, no such list shall be
required to be furnished.

     Section 7.02. Preservation of Information; Communications to Noteholders.

     (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Noteholders contained in
the most recent list furnished to the Indenture Trustee as provided in Section
7.01 and the names, addresses and taxpayer identification numbers of the
Noteholders received by the Indenture Trustee in its capacity as Transfer Agent
and Registrar. The Indenture Trustee may destroy any list furnished to it as
provided in Section 7.01 upon receipt of a new list so furnished.

     (b) Noteholders may communicate, pursuant to TIA Section312(b), with other
Noteholders with respect to their rights under this Indenture or under the
Notes. Every Noteholder, by receiving and holding a Note, agrees that none of
the Issuer, the Indenture Trustee, the Transfer Agent and Registrar and the
Servicer or any of their respective agents and employees shall be held
accountable by reason of the disclosure of any information as to the names and
addresses of the Noteholders hereunder, regardless of the sources from which
such information was derived.

     (c) The Issuer, the Indenture Trustee and the Transfer Agent and Registrar
shall have the protection of TIA Section312(c).

     Section 7.03. Reports by Issuer.

     (a) The Issuer shall:

         (i) file with the Indenture Trustee, within fifteen (15) days after the
Issuer is required to file the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) which the Issuer may be required to file with
the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

         (ii) file with the Indenture Trustee and the Commission in accordance
with rules and regulations prescribed from time to time by the Commission such
additional information, documents and

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<PAGE>   61

reports with respect to compliance by the Issuer with the conditions and
covenants of this Indenture as may be required from time to time by such rules
and regulations; and

         (iii) supply to the Indenture Trustee (and the Indenture Trustee shall
transmit by mail to all Noteholders described in TIA Section313(c)) such
summaries of any information, documents and reports required to be filed by the
Issuer pursuant to clauses (i) and (ii) of this subsection 7.03(a) as may be
required by rules and regulations prescribed from time to time by the
Commission.

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

     Section 7.04. Reports by Indenture Trustee.

     If required by TIA Section313(a), within sixty (60) days after each [June
30] beginning with [June 30], 2001, the Indenture Trustee shall mail to each
Noteholder as required by TIA Section313(c) a brief report dated as of such date
that complies with TIA Section313(a). The Indenture Trustee also shall comply
with TIA Section313(b).

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

                                  ARTICLE VIII

                    ALLOCATION AND APPLICATION OF COLLECTIONS

     Section 8.01. Collection of Money.

     Except as otherwise expressly provided herein and in the related Indenture
Supplement, the Indenture Trustee may demand payment or delivery of, and shall
receive and collect, directly and without intervention or assistance of any
fiscal agent or other intermediary, all money and other property payable to or
receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall hold all such money and property received by it in trust for the
Noteholders and shall apply it as provided in this Indenture. Except as
otherwise expressly provided in this Indenture, if any default occurs in the
making of any payment or performance under the Transfer and Servicing Agreement
or any other Transaction Document, the Indenture Trustee may, and upon the
request of the Holders of Notes representing not less than 66 2/3% of the
Outstanding Amount of the affected Series shall, take such action as may be
appropriate to enforce such payment or performance, including the institution
and prosecution of appropriate Proceedings. Any such action shall be without
prejudice to any right to claim a Pay Out Event or a Default or Event of Default
under this Indenture and to proceed thereafter as provided in Article V hereof.

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<PAGE>   62

     Section 8.02. Rights of Noteholders.

     The Collateral shall secure the obligation of the Trust to pay to the
Holders of the Notes of each Series principal and interest and other amounts
payable pursuant to this Indenture and the related Indenture Supplement. Except
as specifically set forth in the Indenture Supplement with respect thereto, the
Notes of any Series or Class shall not have rights to payment from any Series
Account or Series Enhancement allocated for the benefit of any other Series or
Class.

     Section 8.03. Establishment of Collection Account and Excess Funding
Account.

     (a) The Servicer, for the benefit of the Noteholders, shall establish and
maintain with the Indenture Trustee or its nominee in the name of the Indenture
Trustee, on behalf of the Trust, a Qualified Account (including any subaccount
thereof) bearing a designation clearly indicating that the funds and other
property credited thereto are held for the benefit of the Noteholders (the
"Collection Account"). The Indenture Trustee shall possess all right, title and
interest in all monies, instruments, investment property, documents,
certificates of deposit and other property credited from time to time to the
Collection Account and in all proceeds, earnings, income, revenue, dividends and
distributions thereof for the benefit of the Noteholders.

     The Collection Account shall be under the sole dominion and control of the
Indenture Trustee for the benefit of the Noteholders. Except as expressly
provided in this Indenture and the Transfer and Servicing Agreement, the
Servicer agrees that it shall have no right of setoff or banker's lien against,
and no right to otherwise deduct from, any funds held in the Collection Account
for any amount owed to it by the Indenture Trustee, the Trust, any Noteholder or
any Series Enhancer. If, at any time, the Collection Account ceases to be a
Qualified Account, the Indenture Trustee (or the Servicer on its behalf) shall
within ten (10) Business Days (or such longer period, not to exceed thirty (30)
calendar days, as to which each Rating Agency may consent) establish a new
Collection Account meeting the conditions specified above, transfer any monies,
documents, instruments, investment property, certificates of deposit and other
property to such new Collection Account and from the date such new Collection
Account is established, it shall be the "Collection Account." Pursuant to the
authority granted to the Servicer in subsection 3.01(b) of the Transfer and
Servicing Agreement, the Servicer shall have the power, revocable by the
Indenture Trustee, to make withdrawals and payments from the Collection Account
and to instruct the Indenture Trustee to make withdrawals and payments from the
Collection Account for the purposes of carrying out the Servicer's or the
Indenture Trustee's duties hereunder and under the Transfer and Servicing
Agreement, as applicable. The Servicer shall reduce deposits into the Collection
Account payable by the Transferor on any Deposit Date to the extent the
Transferor is entitled to receive funds from the Collection Account on such
Deposit Date, but only to the extent such reduction would not reduce the
Transferor Interest to an amount less than the Required Transferor Interest.

     Funds on deposit in the Collection Account (other than investment earnings
and amounts deposited pursuant to Section 2.06, 6.01, or 7.01 of the Transfer
and Servicing Agreement or Section 11.02 of this Indenture) shall at the written
direction of the Servicer be invested by the Indenture Trustee or its nominee in
Eligible Investments selected by the Servicer. All such Eligible Investments
shall be held by the Indenture Trustee for the benefit of the Noteholders
pursuant to 6.15. Investments of funds representing Collections collected during
any Monthly Period shall be invested in Eligible Investments

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<PAGE>   63

that will mature so that such funds will be available no later than the close of
business on each monthly Transfer Date following such Monthly Period in amounts
sufficient to the extent of such funds to make the required distributions on the
following Payment Date. No such Eligible Investment shall be disposed of prior
to its maturity; provided, however, that the Indenture Trustee may sell,
liquidate or dispose of any such Eligible Investment before its maturity, at the
written direction of the Servicer, if such sale, liquidation or disposal would
not result in a loss of all or part of the principal portion of such Eligible
Investment or if, prior to the maturity of such Eligible Investment, a default
occurs in the payment of principal, interest or any other amount with respect to
such Eligible Investment. Unless directed by the Servicer, funds deposited in
the Collection Account on a Transfer Date with respect to the immediately
succeeding Payment Date are not required to be invested overnight. On each
Payment Date, all interest and other investment earnings (net of losses and
investment expenses) on funds on deposit in the Collection Account shall be
treated as Collections of Finance Charge and Administrative Receivables with
respect to the last day of the related Monthly Period, except as otherwise
specified in any Indenture Supplement. The Indenture Trustee shall bear no
responsibility or liability for any losses resulting from investment or
reinvestment of any funds in accordance with this Section 8.03 nor for the
selection of Eligible Investments in accordance with the provisions of this
Indenture and any Indenture Supplement.

     (b) The Servicer, for the benefit of the Noteholders, shall establish and
maintain with the Indenture Trustee or its nominee in the name of the Indenture
Trustee, on behalf of the Trust, a Qualified Account (including any subaccounts
thereof) bearing a designation clearly indicating that the funds and other
property credited thereto are held for the benefit of the Noteholders (the
"Excess Funding Account"). The Indenture Trustee shall possess all right, title
and interest in all monies, instruments, investment property, documents,
certificates of deposit and other property credited from time to time to the
Excess Funding Account and in all proceeds, dividends distributions, earnings,
income and revenue thereof for the benefit of the Noteholders. The Excess
Funding Account shall be under the sole dominion and control of the Indenture
Trustee for the benefit of the Noteholders. Except as expressly provided in this
Indenture and the Transfer and Servicing Agreement, the Servicer agrees that it
shall have no right of setoff or banker's lien against, and no right to
otherwise deduct from, any funds and other property held in the Excess Funding
Account for any amount owed to it by the Indenture Trustee, the Trust, any
Noteholder or any Series Enhancer. If, at any time, the Excess Funding Account
ceases to be a Qualified Account, the Indenture Trustee (or the Servicer on its
behalf) shall within ten (10) Business Days (or such longer period, not to
exceed thirty (30) calendar days, as to which each Rating Agency may consent)
establish a new Excess Funding Account meeting the conditions specified above,
transfer any monies, documents, instruments, investment property, certificates
of deposit and other property to such new Excess Funding Account and from the
date such new Excess Funding Account is established, it shall be the "Excess
Funding Account."

     Funds on deposit in the Excess Funding Account shall at the written
direction of the Servicer be invested by the Indenture Trustee in Eligible
Investments selected by the Servicer. All such Eligible Investments shall be
held by the Indenture Trustee or its nominee (including any securities
intermediary) for the benefit of the Noteholders pursuant to Section 6.15. Funds
on deposit in the Excess Funding Account on any Payment Date will be invested in
Eligible Investments that will mature so that such funds will be available no
later than the close of business on the next succeeding Transfer Date. No such
Eligible Investment shall be disposed of prior to its maturity; provided,
however, that the Indenture Trustee may sell, liquidate or dispose of an
Eligible Investment before its maturity, at the written direction

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<PAGE>   64

of the Servicer, if such sale, liquidation or disposal would not result in a
loss of all or part of the principal portion of such Eligible Investment or if,
prior to the maturity of such Eligible Investment, a default occurs in the
payment of principal, interest or any other amount with respect to such Eligible
Investment. Unless directed by the Servicer, funds deposited in the Excess
Funding Account on a Transfer Date with respect to the immediately succeeding
Payment Date are not required to be invested overnight. [On each Payment Date,
all interest and other investment earnings (net of losses and investment
expenses) on funds on deposit in the Excess Funding Account shall be treated as
Collections of Finance Charge and Administrative Receivables with respect to the
last day of the related Monthly Period except as otherwise specified in the
related Indenture Supplement.] On each Business Day on which funds are on
deposit in the Excess Funding Account and on which no Series is in an
Accumulation Period or Amortization Period, the Servicer shall determine the
amount (if any) by which the Transferor Interest exceeds the Required Transferor
Interest on such date and shall instruct the Indenture Trustee to withdraw any
such excess from the Excess Funding Account and pay such amount to the holders
of Trust Beneficial Interests or Certificates; provided, however, that, if an
Accumulation Period or Amortization Period has commenced and is continuing with
respect to one or more outstanding Series, any funds on deposit in the Excess
Funding Account shall be treated as Shared Principal Collections and shall be
allocated and distributed in accordance with Section 8.05 and the terms of each
Indenture Supplement.

     Section 8.04. Collections and Allocations.

     (a) The Servicer will apply or will instruct the Indenture Trustee to apply
all funds on deposit in the Collection Account as described in this Article VIII
and in each Indenture Supplement. Except as otherwise provided below, the
Servicer shall deposit Collections into the Collection Account as promptly as
possible after the Date of Processing of such Collections, but in no event later
than the second Business Day following the Date of Processing. Subject to the
express terms of any Indenture Supplement, but notwithstanding anything else in
this Indenture or the Transfer and Servicing Agreement to the contrary, for so
long as any of the following conditions are satisfied: (i) ABC remains the
Servicer; (ii) no Pay Out Event has occurred; or (iii) (A) ABC maintains a long
or short term rating which is satisfactory to each Rating Agency, (B) Advanta
Corp. has provided the Indenture Trustee with a performance guarantee covering
the risk that the Servicer will not deposit Collections in the Collection
Account as required herein and the Rating Agency Condition shall be satisfied
with the respect to such arrangement, or (C) the Servicer delivers to the
Indenture Trustee a letter of credit or other guaranty covering the risk that
the Servicer will not deposit Collections in the Collection Account as required
herein and the Rating Agency Condition shall be satisfied with respect to such
arrangement, the Servicer need not make the daily deposits of Collections into
the Collection Account as provided in the preceding sentence, but may make a
single deposit in the Collection Account in immediately available funds not
later than 1:00 p.m., New York City time, on the Payment Date following the
Monthly Period with respect to which such deposit relates. Subject to the first
proviso in Section 8.05, but notwithstanding anything else in this Indenture or
the Transfer and Servicing Agreement to the contrary, with respect to any
Monthly Period, whether the Servicer is required to make deposits of Collections
pursuant to the first or the second preceding sentence, (i) the Servicer will
only be required to deposit Collections into the Collection Account up to the
aggregate amount of Collections required to be deposited into any Series Account
or, without duplication, distributed on or prior to the related Payment Date to
Noteholders or to any Series Enhancer pursuant to the terms of any Indenture
Supplement or Enhancement Agreement and (ii) if at any time prior to such
Payment Date the amount of Collections deposited in the Collection Account
exceeds the

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<PAGE>   65

amount required to be deposited pursuant to clause (i) above, the Servicer will
be permitted to withdraw the excess from the Collection Account and pay such
amount to the Issuer to be distributed by the Issuer pursuant to the terms of
the Transaction Documents. Subject to the immediately preceding sentence, the
Servicer may retain its Servicing Fee with respect to a Series and shall not be
required to deposit it in the Collection Account. To the extent that, in
accordance with this subsection 8.04(a), the Servicer has retained amounts which
would otherwise be required to be deposited into the Collection Account or any
Series Account with respect to any Monthly Period, the Servicer shall be
required to deposit such amounts in the Collection Account or such Series
Account on the related Payment Date to the extent necessary to make required
distributions on the related Payment Date, including any amounts which are
required to be applied as Reallocated Principal Collections.

     (b) Collections of Finance Charge and Administrative Receivables, Principal
Receivables and Defaulted Receivables will be allocated to each Series of Notes
and to the holders of Trust Beneficial Interests or Certificates in accordance
with this Article VIII and each Indenture Supplement and amounts so allocated to
any Series will not, except as specified in the related Indenture Supplement, be
available to the Noteholders of any other Series. Allocations of the foregoing
amounts between the Holders of the Notes and the holders of Trust Beneficial
Interests or Certificates, among the Series and among the Classes in any Series,
shall be set forth in the related Indenture Supplement or Indenture Supplements.

     Section 8.05. Shared Principal Collections.

     On each Payment Date, (1) the Servicer shall allocate Shared Principal
Collections (as described below) to each Principal Sharing Series, pro rata, in
proportion to the Principal Shortfalls, if any, with respect to each such Series
and (2) the Servicer shall withdraw from the Collection Account and pay to the
holders of Trust Beneficial Interests or Certificates an amount equal to the
excess, if any, of (x) the aggregate amount for all outstanding Series of
Collections of Principal Receivables which the related Indenture Supplements
specify are to be treated as "Shared Principal Collections" for such Payment
Date over (y) the aggregate amount for all outstanding Series which the related
Indenture Supplements specify are "Principal Shortfalls" for such Series and for
such Payment Date; provided, however, that if the Transferor Interest as of such
Payment Date (determined after giving effect to the Principal Receivables
transferred to the Trust on such date) is less than the Required Transferor
Interest, the Servicer will not distribute to the holders of Trust Beneficial
Interests or Certificates any such amounts that otherwise would be distributed
to the holders of Trust Beneficial Interests or Certificates, but shall deposit
such funds in the Excess Funding Account. The Transferor may, at its option,
instruct the Indenture Trustee to deposit Shared Principal Collections which are
otherwise payable to the holders of Trust Beneficial Interests or Certificates
pursuant to the provisions set forth above into the Excess Funding Account.
Notwithstanding the foregoing, a Group of Series may specify in their related
Indenture Supplements that Shared Principal Collections from such Series shall
be allocated as provided above but only among the Series in such Group.

     Section 8.06. Additional Withdrawals from the Collection Account.

     On or before the Determination Date with respect to any Monthly Period, the
Servicer shall determine the amounts payable to ABRC or any Seller with respect
to such Monthly Period under the related Receivables Purchase Agreement in
respect of amounts credited to the Collection Account that

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<PAGE>   66

were not transferred to the Trust hereunder, and the Servicer shall withdraw
such amounts from the Collection Account and pay such amount to ABRC or such
Seller, as the case may be.

     Section 8.07. Allocation of Collateral to Series or Groups.

     To the extent so provided in the Indenture Supplement for any Series or in
an Indenture Supplement otherwise executed pursuant to Section 10.01,
Receivables conveyed to the Trust pursuant to Section 2.01 of the Transfer and
Servicing Agreement and Receivables conveyed to the Trust pursuant to Section
2.09 of the Transfer and Servicing Agreement and all Collections received with
respect thereto may be allocated or applied in whole or in part to one or more
Series or Groups as may be provided in such Indenture Supplement; provided,
however, that any such allocation or application shall be effective only upon
satisfaction of the following conditions:

         (i) on or before the fifth Business Day immediately preceding such
allocation, the Servicer shall have given the Indenture Trustee and each Rating
Agency written notice of such allocation;

         (ii) the Rating Agency Condition shall have been satisfied with respect
to such allocation; and

         (iii) the Servicer shall have delivered to the Indenture Trustee an
Officer's Certificate, dated the date of such allocation, to the effect that the
Servicer reasonably believes that such allocation will not have an Adverse
Effect.

     Any such Indenture Supplement may provide that (i) such allocation to one
or more particular Series or Groups may terminate upon the occurrence of certain
events specified therein and (ii) that upon the occurrence of any such event,
such assets and any Collections with respect thereto, shall be reallocated to
other Series or Groups or to all Series, all as shall be provided in such
Indenture Supplement.

     Section 8.08. Excess Finance Charge Collections.

     On each Payment Date, (a) the Servicer shall allocate Excess Finance Charge
Collections (as described below) to each Excess Allocation Series, pro rata, in
proportion to the Finance Charge Shortfalls (as described below), if any, with
respect to each such Series and (b) the Servicer shall withdraw from the
Collection Account and pay to the holders of Trust Beneficial Interests or
Certificates an amount equal to the excess, if any, of (x) the aggregate amount
for all outstanding Series of Collections of Finance Charge and Administrative
Receivables which the related Supplements specify are to be treated as "Excess
Finance Charge Collections" for such Payment Date over (y) the aggregate amount
for all outstanding Series which the related Supplements specify are "Finance
Charge Shortfalls" for such Series and such Payment Date; provided, however,
that the sharing of Excess Finance Charge Collections among Series will continue
only until such time, if any, at which the Transferor shall deliver to the
Indenture Trustee an Officer's Certificate to the effect that, in the reasonable
belief of the Transferor, the continued sharing of Excess Finance Charge
Collections among Series would have adverse regulatory implications with respect
to the Transferor. Notwithstanding the foregoing, a Group of Series may specify
in their related Indenture Supplements that Excess Finance Charge Collections
from such Series shall be allocated as provided above but only among the Series
in such Group.

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<PAGE>   67

     Section 8.09. Release of Collateral; Eligible Loan Documents.

     (a) The Indenture Trustee may, and when required by the provisions of this
Indenture shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in the same, in a manner
and under circumstances which are not inconsistent with the provisions of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in this Article VIII shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent
or see to the application of any monies.

     (b) In order to facilitate the servicing of the Receivables by the
Servicer, the Indenture Trustee upon Issuer Order shall authorize the Servicer
to execute in the name and on behalf of the Indenture Trustee instruments of
satisfaction or cancellation, or of partial or full release or discharge, and
other comparable instruments with respect to the Receivables (and the Indenture
Trustee shall execute any such documents on request of the Servicer), subject to
the obligations of the Servicer under the Transfer and Servicing Agreement.

     (c) The Indenture Trustee shall, at such time as there are no Notes
outstanding, release and transfer, without recourse, all of the Collateral that
secured the Notes (other than any cash held for the payment of the Notes
pursuant to Section 4.02). The Indenture Trustee shall release property from the
lien of this Indenture pursuant to this Section 8.09(c) only upon receipt of an
Issuer Order accompanied by an Officer's Certificate, an Opinion of Counsel and
(if required by the TIA) Independent Certificates in accordance with TIA
Section314(c) and 314(d)(1) meeting the applicable requirements of Section
12.01.

     (d) Notwithstanding anything to the contrary in this Indenture, the
Transfer and Servicing Agreement and the Trust Agreement, immediately prior to
the release of any portion of the Collateral or any funds on deposit in the
Series Accounts pursuant to this Indenture, the Indenture Trustee shall remit to
the Transferor for its own account any funds that, upon such release, would
otherwise be remitted to the Issuer.

     Section 8.10. Opinion of Counsel.

     The Indenture Trustee shall receive at least seven (7) days notice when
requested by the Issuer to take any action pursuant to subsection 8.09(a),
accompanied by copies of any instruments involved, and the Indenture Trustee
shall also require, as a condition to such action, an Opinion of Counsel, in
form and substance reasonably satisfactory to the Indenture Trustee, stating the
legal effect of any such action, outlining the steps required to complete the
same, and concluding that all conditions precedent to the taking of such action
have been complied with and such action will not materially and adversely impair
the security for the Notes or the rights of the Noteholders in contravention of
the provisions of this Indenture; provided, however, that such Opinion of
Counsel shall not be required to express an opinion as to the fair value of the
Collateral. The Indenture Trustee and counsel rendering any such opinion may
rely, without independent investigation, on the accuracy and validity of any
certificate or other instrument delivered to the Indenture Trustee in connection
with any such action.

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<PAGE>   68

                                   ARTICLE IX

                    DISTRIBUTIONS AND REPORTS TO NOTEHOLDERS

     Distributions shall be made to, and reports shall be provided to,
Noteholders as set forth in the applicable Indenture Supplement. The identity of
the Noteholders with respect to distributions and reports shall be determined
according to the immediately preceding Record Date.

                                    ARTICLE X

                             SUPPLEMENTAL INDENTURES

     Section 10.01. Supplemental Indentures Without Consent of Noteholders.

     (a) Without the consent of the Holders of any Notes but with prior notice
to the Rating Agencies with respect to the Notes of all Series, the Issuer and
the Indenture Trustee, when authorized by an Issuer Order, at any time and from
time to time, may enter into one or more indentures supplemental hereto (which
shall conform to the provisions of the TIA as in force at the date of the
execution thereof), in form satisfactory to the Indenture Trustee, for any of
the following purposes:

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

         (ii) to evidence the succession, in compliance with Section 3.11
hereof, of another person to the Issuer, and the assumption by any such
successor of the covenants of the Issuer contained herein and in the Notes;

         (iii) to add to the covenants of the Issuer, for the benefit of the
Holders of the Notes, or to surrender any right or power herein conferred upon
the Issuer;

         (iv) to convey, transfer, assign, mortgage or pledge any property to or
with the Indenture Trustee;

         (v) to cure any ambiguity, to correct or supplement any provision
herein or in any supplemental indenture that may be inconsistent with any other
provision herein or in any supplemental indenture or to make any other
provisions with respect to matters or questions arising under this Indenture or
in any supplemental indenture; provided that such action shall not adversely
affect the interests of the Holders of the Notes;

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

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<PAGE>   69

         (vii) to modify, eliminate or add to the provisions of this Indenture
to such extent as shall be necessary to effect the qualification of this
Indenture under the TIA or under any similar federal statute hereafter enacted
and to add to this Indenture such other provisions as may be expressly required
by the TIA;

         (viii) to provide for the issuance of one or more new Series of Notes,
in accordance with the provisions of Section 2.12 hereof; or

         (ix) to provide for the termination of any interest rate swap agreement
or other form of credit enhancement in accordance with the provisions of the
related Indenture Supplement.

     The Indenture Trustee is hereby authorized to join in the execution of any
such supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

     (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any Noteholders of any Series then
Outstanding but upon satisfaction of the Rating Agency Condition with respect to
the Notes of all Series, enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; provided,
however that (i) the Transferor shall have delivered to the Owner Trustee and
the Indenture Trustee an Officer's Certificate, dated the date of any such
action, stating that all requirements for such amendments contained in the
Agreement have been met and the Transferor reasonably believes that such action
will not have an Adverse Effect and (ii) a Tax Opinion shall have been delivered
to each Rating Agency. Additionally, notwithstanding the preceding sentence, the
Issuer and the Indenture Trustee, when authorized by an Issuer Order, may,
without the consent of any Noteholders of any Series then Outstanding or the
Series Enhancers for any Series, enter into an indenture or indentures
supplemental hereto to add, modify or eliminate such provisions as may be
necessary or advisable in order to enable all or a portion of the Trust (i) to
qualify as, and to permit an election to be made to cause the Trust to be
treated as, a "financial asset securitization investment trust" as described in
the provisions of Section 860L of the Code, and (ii) to avoid the imposition of
state or local income or franchise taxes imposed on the Trust's property or its
income; provided, however, that (i) the Transferor delivers to the Indenture
Trustee and the Owner Trustee an Officer's Certificate to the effect that the
proposed amendments meet the requirements set forth in this subsection 10.01(b),
(ii) the Rating Agency Condition will have been satisfied and (iii) such
amendment does not affect the rights, duties or obligations of the Indenture
Trustee or the Owner Trustee hereunder. The amendments which the Transferor may
make without the consent of Noteholders pursuant to the preceding sentence may
include, without limitation, the addition of a sale of Receivables.

     Section 10.02. Supplemental Indentures with Consent of Noteholders.

     The Issuer and the Indenture Trustee, when authorized by an Issuer Order,
also may, upon satisfaction of the Rating Agency Condition and with the consent
of the Holders of Notes representing more than 50% of the Outstanding Amount of
each adversely affected Series, by Act of such Holders delivered to the Issuer
and the Indenture Trustee, enter into an indenture or indentures supplemental

                                      -63-

<PAGE>   70

hereto for the purpose of adding any provisions to, changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of such Noteholders under this Indenture; provided, however
that no such supplemental indenture shall, without the consent of the Holder of
each outstanding Note affected thereby:

     (a) change the due date of any installment of principal of or interest on
any Note, or reduce the principal amount thereof, the interest rate specified
thereon or the redemption price with respect thereto or change any place of
payment where, or the coin or currency in which, any Note or any interest
thereon is payable;

     (b) impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article V, to the payment of any such amount due on the
Notes on or after the respective due dates thereof (or, in the case of
redemption, on or after the Redemption Date);

     (c) reduce the percentage of the Outstanding Amount of any Series the
consent of the Holders of which is required for any such supplemental indenture,
or the consent of the Holders of which is required for any waiver of compliance
with certain provisions of this Indenture or certain defaults hereunder and
their consequences as provided for in this Indenture;

     (d) reduce the percentage of the Outstanding Amount of any Series, the
consent of the Holders of which is required to direct the Indenture Trustee to
sell or liquidate the Collateral if the proceeds of such sale would be
insufficient to pay the principal amount and accrued but unpaid interest on the
outstanding Notes of such Series;

     (e) decrease the percentage of the Outstanding Amount required to amend the
sections of this Indenture which specify the applicable percentage of the
Outstanding Amount of the Notes of any Series necessary to amend the Indenture
or any Transaction Documents which require such consent;

     (f) modify or alter the provisions of this Indenture prohibiting the voting
of Notes held by the Trust, any other Obligor on the Notes, a Seller or any
affiliate thereof; or

     (g) permit the creation of any Lien ranking prior to or on a parity with
the lien of this Indenture with respect to any part of the Collateral for any
Notes or, except as otherwise permitted or contemplated herein, terminate the
Lien of this Indenture on any such Collateral at any time subject hereto or
deprive the Holder of any Note of the security provided by the Lien of this
Indenture.

     The Indenture Trustee may in its discretion determine whether or not any
Notes would be affected by any supplemental indenture and any such determination
shall be conclusive upon the Holders of all Notes, whether theretofore or
thereafter authenticated and delivered hereunder. The Indenture Trustee shall
not be liable for any such determination made in good faith.

     It shall not be necessary for any Act of Noteholders under this Section
10.02 to approve the particular form of any proposed supplemental indenture, but
it shall be sufficient if such Act shall approve the substance thereof.

                                      -64-

<PAGE>   71

     Promptly after the execution by the Issuer and the Indenture Trustee of any
Supplement Indenture pursuant to this Section 10.02, the Indenture Trustee shall
mail to the Holders of the Notes to which such amendment or supplemental
indenture relates written notice setting forth in general terms the substance of
such Supplement Indenture. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

     Section 10.03. Execution of Supplemental Indentures.

     In executing, or permitting the additional trusts created by, any
supplemental indenture permitted by this Article X or the modification thereby
of the trusts created by this Indenture, the Indenture Trustee shall be entitled
to receive, and subject to Sections 6.01 and 6.02, shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The
Indenture Trustee may, but shall not be obligated to, enter into any such
supplemental indenture that affects the Indenture Trustee's own rights, duties,
liabilities or immunities under this Indenture or otherwise.

     Section 10.04. Effect of Supplemental Indenture.

     Upon the execution of any supplemental indenture under this Article X, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes, and every Holder
of Notes theretofore or thereafter authenticated and delivered hereunder shall
be bound thereby.

     Section 10.05. Conformity With Trust Indenture Act.

     Every amendment of this Indenture and every supplemental indenture executed
pursuant to this Article X shall conform to the requirements of the TIA as then
in effect so long as this Indenture shall then be qualified under the TIA.

     Section 10.06. Reference in Notes to Supplemental Indentures.

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

                                      -65-

<PAGE>   72

                                   ARTICLE XI

                                   TERMINATION

     Section 11.01. Termination of Trust.

     The Trust and the respective obligations and responsibilities of the
Indenture Trustee created hereby (other than the obligation of the Indenture
Trustee to make payments to Noteholders as hereinafter set forth) shall
terminate, except with respect to the duties described in subsection 11.02(b),
as provided in the Trust Agreement.

     Section 11.02. Final Distribution.

     (a) The Servicer shall give the Indenture Trustee at least thirty (30) days
prior notice of the Payment Date on which the Noteholders of any Series or Class
may surrender their Notes for payment of the final distribution on and
cancellation of such Notes (or, in the event of a final distribution resulting
from the application of Section 2.06, 6.01 or 7.01 of the Transfer and Servicing
Agreement, notice of such Payment Date promptly after the Servicer has
determined that a final distribution will occur, if such determination is made
less than thirty (30) days prior to such Payment Date). Such notice shall be
accompanied by an Officer's Certificate setting forth the information specified
in Section 3.05 of the Transfer and Servicing Agreement covering the period
during the then-current calendar year through the date of such notice. Not later
than the fifth day of the month in which the final distribution in respect of
such Series or Class is payable to Noteholders, the Indenture Trustee shall
provide notice to Noteholders of such Series or Class specifying (i) the date
upon which final payment of such Series or Class will be made upon presentation
and surrender of Notes of such Series or Class at the office or offices therein
designated, (ii) the amount of any such final payment and (iii) that the Record
Date otherwise applicable to such payment date is not applicable, payments being
made only upon presentation and surrender of such Notes at the office or offices
therein specified (which, in the case of Bearer Notes, shall be outside the
United States). The Indenture Trustee shall give such notice to the Transfer
Agent and Registrar and the Paying Agent at the time such notice is given to
Noteholders.

     (b) Notwithstanding a final distribution to the Noteholders of any Series
or Class (or the termination of the Trust), except as otherwise provided in this
paragraph, all funds then on deposit in the Collection Account and any Series
Account allocated to such Noteholders shall continue to be held in trust for the
benefit of such Noteholders and the Paying Agent or the Indenture Trustee shall
pay such funds to such Noteholders upon surrender of their Notes, if
certificated (and any excess shall be paid in accordance with the terms of any
Enhancement Agreement). In the event that all such Noteholders shall not
surrender their Notes for cancellation within six (6) months after the date
specified in the notice from the Indenture Trustee described in paragraph (a),
the Indenture Trustee shall give a second notice to the remaining such
Noteholders to surrender their Notes for cancellation and receive the final
distribution with respect thereto (which surrender and payment, in the case of
Bearer Notes, shall be outside the United States). If within one year after the
second notice all such Notes shall not have been surrendered for cancellation,
the Indenture Trustee may take appropriate steps, or may appoint an agent to
take appropriate steps, to contact the remaining such Noteholders concerning
surrender of their Notes, and the cost thereof shall be paid out of the funds in
the Collection Account or any Series Account held for the

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<PAGE>   73

benefit of such Noteholders. The Indenture Trustee and the Paying Agent shall
pay to the Issuer any monies held by them for the payment of principal or
interest that remains unclaimed for two (2) years. After payment to the Issuer,
Noteholders entitled to the money must look to the Issuer for payment as general
creditors unless an applicable abandoned property law designates another Person.

     Section 11.03. Issuer's Termination Rights.

     Upon the termination of the Trust pursuant to the terms of the Trust
Agreement, the Indenture Trustee shall assign and convey to the holders of Trust
Beneficial Interests or Certificates or any of their designees, without
recourse, representation or warranty, all right, title and interest of the Trust
in the Receivables, whether then existing or thereafter created, all Interchange
and Recoveries related thereto all monies due or to become due and all amounts
received or receivable with respect thereto (including all moneys then held in
the Collection Account or any Series Account) and all proceeds thereof, except
for amounts held by the Indenture Trustee pursuant to subsection 11.02(b). The
Indenture Trustee shall execute and deliver such instruments of transfer and
assignment, in each case without recourse, as shall be reasonably requested by
the holders of Trust Beneficial Interests or Certificates to vest in the holders
of Trust Beneficial Interests or Certificates or any of their designees all
right, title and interest which the Indenture Trustee had in the Collateral and
such other property.

     Section 11.04. [Reserved].

                                   ARTICLE XII

                                  MISCELLANEOUS

     Section 12.01. Compliance Certificates and Opinions etc.

     (a) Upon any application or request by the Issuer to the Indenture Trustee
to take any action under any provision of this Indenture, the Issuer shall
furnish to the Indenture Trustee (i) an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate from
a firm of certified public accountants meeting the applicable requirements of
this Section 12.01, except that, in the case of any such application or request
as to which the furnishing of such documents is specifically required by any
provision of this Indenture, no additional certificate or opinion need be
furnished.

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

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

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

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<PAGE>   74

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

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

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

         (ii) Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (i) above, the Issuer shall also
deliver to the Indenture Trustee (if required by the TIA) an Independent
Certificate as to the same matters, if the fair value to the Issuer of the
investment property to be so deposited and of all other such investment property
made the basis of any such withdrawal or release since the commencement of the
then-current fiscal year of the Issuer, as set forth in the certificates
delivered pursuant to clause (i) above and this clause (ii), is 10% or more of
the Outstanding Amount of the Notes, but such a certificate need not be
furnished with respect to any investment property so deposited if the fair value
thereof to the Issuer as set forth in the related Officer's Certificate is less
than $25,000 or less than one percent of the Outstanding Amount of the Notes.

         (iii) Other than with respect to the release of any Receivables in
Removed Accounts, whenever any property or investment property is to be released
from the lien of this Indenture, the Issuer shall also furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (within ninety (90) days of
such release) of the property or securities proposed to be released and stating
that in the opinion of such person the proposed release will not impair the
security under this Indenture in contravention of the provisions hereof.

         (iv) Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (iii) above, the Issuer shall also
furnish to the Indenture Trustee (if required by the TIA) an Independent
Certificate as to the same matters if the fair value of the property or
investment property and of all other property, other than Receivables in Removed
Accounts, or investment property released from the lien of this Indenture since
the commencement of the then current calendar year, as set forth in the
certificates required by clause (iii) above and this clause (iv), equals 10% or
more of the Outstanding Amount of the Notes, but such certificate need not be
furnished in the case of any release of property or investment property if the
fair value thereof as set forth in the related Officer's Certificate is less
than $25,000 or less than one percent of the then Outstanding Amount of the
Notes.

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<PAGE>   75

         (iv) Notwithstanding Section 2.11 or any other provision of this
Section 12.01, the Issuer may (A) collect, liquidate, sell or otherwise dispose
of Receivables as and to the extent permitted or required by the Transaction
Documents and (B) make cash payments out of the Series Accounts as and to the
extent permitted or required by the Transaction Documents.

     Section 12.02. Form of Documents Delivered to Indenture Trustee.

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

     Any certificate or opinion of a Responsible Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which such officer's certificate or opinion is
based are erroneous. Any such certificate of a Responsible Officer or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Servicer, a Seller, the Issuer or the Administrator, stating that the
information with respect to such factual matters is in the possession of the
Servicer, a Seller, the Issuer or the Administrator, unless such Responsible
Officer or Counsel knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to such matters
are erroneous.

     Where any Person is required to make, give or execute two (2) or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

     Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

     Section 12.03. Acts of Noteholders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Noteholders
may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Noteholders in person or by their agents duly
appointed in writing and satisfying any requisite percentages as to minimum
number or dollar

                                      -69-

<PAGE>   76

value of outstanding principal amount represented by such Noteholders; and,
except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Indenture
Trustee, and, where it is hereby expressly required, to the Issuer. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Noteholders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and conclusive in favor of the Indenture Trustee and
the Issuer, if made in the manner provided in this Section 12.03.

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

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

     (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Notes shall bind the Holder (and any
transferee thereof) of every Note issued upon the registration thereof in
exchange therefor or in lieu thereof, in respect of anything done, omitted or
suffered to be done by the Indenture Trustee or the Issuer in reliance thereon,
whether or not notation of such action is made upon such Note.

     Section 12.04. Notices, Etc. to Indenture Trustee and Issuer.

     Any request, demand, authorization, direction, notice, consent, waiver or
Act of Noteholders or other documents provided or permitted by the Agreement to
be made upon, given or furnished to, or filed with:

     (a) the Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to a Trustee Officer, by facsimile transmission or by other means
acceptable to the Indenture Trustee to or with the Indenture Trustee at its
Corporate Trust Office; or

     (b) the Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if in writing and mailed, first-class
postage prepaid, to the Issuer addressed to it at
[______________________________________________________________________________]
or at any other address previously furnished in writing to the Indenture Trustee
by the Issuer. A copy of each notice to the Issuer shall be sent in writing and
mailed, first-class postage prepaid, to the Administrator at 11850 South
Election Road, Draper, Utah 84020.

     Section 12.05. Notices to Noteholders; Waiver.

     Where the Indenture provides for notice to Noteholders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed by registered or certified mail or first class postage
prepaid or national overnight courier service to each Noteholder affected by
such event, at its address as it appears on the Note Register, not later than
the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to

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<PAGE>   77

Noteholders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice
which is mailed in the manner herein provided shall conclusively be presumed to
have been duly given.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by any Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Noteholders shall be filed with the Indenture Trustee but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

     In the event that, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event to Noteholders when such notice is required to be
given pursuant to any provision of this Indenture, then any manner of giving
such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

     Where this Indenture provides for notice to any Rating Agency, failure to
give such notice shall not affect any other rights or obligations created
hereunder and shall not under any circumstance constitute a Default or Event of
Default.

     Section 12.06. Alternate Payment and Notice Provisions.

     Notwithstanding any provision of this Indenture or any of the Notes to the
contrary, the Issuer, with the consent of the Indenture Trustee, may enter into
any agreement with any Holder of a Note providing for a method of payment, or
notice by the Indenture Trustee or any Paying Agent to such Holder, that is
different from the methods provided for in this Indenture for such payments or
notices. The Issuer will furnish to the Indenture Trustee a copy of each such
agreement and the Indenture Trustee will cause payments to be made and notices
to be given in accordance with such agreements.

     Section 12.07. Conflict with Trust Indenture Act.

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

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

     Section 12.08. Effect of Headings and Table of Contents.

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

                                      -71-

<PAGE>   78

     Section 12.09. Successors and Assigns.

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

     Section 12.10. Separability.

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

     Section 12.11. Benefits of Indenture.

     Nothing in this Indenture or in the Notes, express or implied, shall give
to any Person, other than the parties hereto and their successors hereunder, and
the Noteholders, the Servicer and the Transferor, any benefit.

     Section 12.12. Legal Holidays.

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

     Section 12.13. GOVERNING LAW.

     THIS INDENTURE AND EACH NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.

     Section 12.14. Counterparts.

     This Indenture may be executed in any number of counterparts, each of which
so executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.

     Section 12.15. Trust Obligation.

     No recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under this Indenture or any certificate or other writing delivered in
connection herewith or therewith, against (i) the Indenture Trustee or the Owner
Trustee in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director,
employee or agent of the Indenture Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or

                                      -72-

<PAGE>   79

the Indenture Trustee or of any successor or assign of the Indenture Trustee or
the Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee and the Owner
Trustee have no such obligations in their individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity. For all purposes of this Indenture, in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Articles V, VI and VII
of the Trust Agreement.

     Section 12.16. No Petition.

     The Indenture Trustee, by entering into this Indenture, and each
Noteholder, by accepting a Note, hereby covenant and agree that they will not at
any time institute against the Issuer or the Transferor, or join in instituting
against the Issuer or the Transferor, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or state bankruptcy or similar law.

                            [SIGNATURE PAGE FOLLOWS]

                                      -73-

<PAGE>   80

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

                                   ADVANTA BUSINESS CARD MASTER TRUST,
                                   as Issuer

                                   By:[____________________________],
                                   not in its individual capacity,
                                   but solely as Owner Trustee

                                   By:  ___________________________

                                   Name:
                                   Title:

                                   BANKERS TRUST COMPANY,
                                   not in its individual capacity,
                                   but solely as Indenture Trustee

                                   By:  ___________________________

                                   Name:
                                   Title:

Acknowledged and Accepted:

ADVANTA BANK CORP.,
as Servicer

By:  ___________________________

Name:
Title:

<PAGE>   81

                          [Signature Page to Indenture]

Acknowledged and Accepted:

ADVANTA BUSINESS RECEIVABLES CORP.,
as Transferor

By:  ___________________________

Name:
Title:

                                      -75-

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